Who are we?

1. Who are we?

2. XU, Qintian • General Manager, Huadian Zibo Cogeneration Co., Ltd. • A former operator, experienced in operating • 6000 kW units • 50 MW units • 125 MW units

3. LI, Zheng • Professor, Dept. of Thermal Engineering, Tsinghua Uni. • Director, Tsinghua Clean Energy Research and Education Center • Doing modeling and simulation of CFB, IGCC • Development of training simulator of CFB power plant

4. Circulating Fluidized Bed Combustion in China Prof. Li Zheng Director Tsinghua BP Clean Energy Research and Education Center October, 2004

5. Comparison of energy mix of China and world in 2002

6. Primary Energy consumption of China in 2003

7. Summary of current energy situation • The total primary energy consumption and production were 1165 Mtoe and 1120 Mtoe in 2003, respectively • Coal is still the dominant primary energy, accounts for nearly 70% in total energy mix • Oil import more than 100 Mt, energy security worry • The per capita energy consumption is only half of the world average level • The total power capacity by the end of 2003: 385 GW • Significantly increasing of energy consumption, especially oil, in recent years due to - the faster growth of heavy industries - upgrade of consumption structure - urbanization

8. Projection of future energy demand • The total energy demand in 2020 will range 1750-2310 Mtoe in terms of different scenarios • Coal：2100~2900Mt • Oil：400~500Mt • Natural gas ：160~200 b m3 • Power generation capacity：860-950 GW • In 2050 the total energy demand will be beyond 3500 Mtoe

9. Energy challenges China is facing in the future 1.The energy security • The per capita energy reserves of China are very low, especially for the oil and natural gas • Oil will reach the peak production around 180Mt in 2020, after then the production will decrease • 60% oil and 40% natural gas in 2020 will depend on import • 100Mt coal production new capacity will be set-up before 2020

10. Energy challenges China is facing in the future 2. Energy efficiency improvement • The energy consumption intensity of GDP of China in 2000 was 829toe/million $US, 3.15 times of world average level and 4.33 times of OECD average, attributed to 42% industrial proportion in GDP and low value added for most products, and low energy efficiency. • The specific energy consumption for most energy intensive products are as 20-50% higher than that of the industrial countries.

11. Energy challenges China is facing in the future 3. Environmental impact of energy pollutant • The SO2 and NOx pollutant could be 40Mt and 35Mt and exceed 16Mt and 19Mt of the pollutant limits, respectively, in 2020 if no additional control measures will be taken • China is the second largest CO2 emission country, it would increase in the future

12. China Power Industry YearCapacity Power Generation GW TWh 1949 1.85 1980 65.86 300.6 1990 137.9 621.3 1995 217 1996 236 1997 254 1998 277 1999 294 2000 319 1346.6 2001 338.6 1483.9 2002 357 1620.0 2003 385 1901.0

13. Installed power capacity by primary energy (total 356 GW at the end of 2002) Nuclear 0.4GW Hydroel 86GW Coal fired 266GW Total installed capacity: 356GW

14. 2002年底全国火电机组分类结构Installed capacity by unit scale (2002) <100 MW, 21% >300 MW, 46% 100-200MW, 16% 200-300MW, 17%

15. GDP Growth 1995-2002 8.9% 2002-2003 9.1% Primary energy consumption 1995-2002 1.7% 2002-2003 13.4% Electricity consumption 1995-2002 7.3% 2002-2003 14.3% The Fast Increase Of Energy Consumption In Recent Years

16. The energy consumption elasticity of GDP 1995-2002 0.2 2002-2003 1.47 The electricity consumption elasticity of GDP 1995-2002 0.82 2002-2003 1.57 The Fast Increase Of Energy Consumption In Recent Years

17. Electricity shortage occurrence in 24 province grids Unbalanced supply and demand in 35GW of power generation capacity Severe shortage of electricity supply

18. The measures addressing electric shortage • Accelerate installation of new power stations by 2.5-3.3 GW annually • Increase coal mining capacity • Close down some factories manufacturing high energy intensive products • Promote construction of new grids and upgrading old grids

19. Vision of coal utilization in China

20. CFB development in China—Domestic technologies • 1980-1990: first R&D 50 units of 35-75T/h , learning CFB process • 1991-2000 develop the CFB theory and design code , 200 units of 75-130T/h CFB successfully installed • 2000-2004 developing 400-670T/h demonstration, disseminating 75-220T/h widely; CFB also the first choice for waste incinerator • 2004- feasibility study supercritical CFB • Characteristics: • not so sensitive with coal type and fuel size • Good experience on erosion protection • Less experience on sulfur capture engineering

21. CFB development in China—import technologies • 1992 Harbin Boiler as sub-contractor of Alhstrom to manufacture 220t/h CFB • 1996 Neijiang imported 400t/ h CFB from Alhstrom • 1996 Dongfang Boiler purchased 220t/h-400t/h CFB technology from Foster Wheeler • 2001 Harbin Boiler purchased 100-150MWe CFB technology from EVT • 2002 Shanghai purchased 100-150MW CFB technology from ABB-CE • 2003 NDRC organized technology transfer of 300 MWe CFB from Alstom • Comments: • good experience on boiler island engineering, • lack of experience on hard coal, ( erosion, ash cooling, burnout of carbon)

22. Market of CFB in China • 75-220T/h- More than 400 units in operation, more than 200 units is reserved • 440T/h – 20 units is in operation, more than 150 units are reserved • 670T/h – 2 units are reserved • 900T/h – 15 units are reserved • Supercritical CFB in feasibility stage

23. A brief introduction toHuadian Zibo Cogeneration Company, Ltd. Xu Qintian General Manager Huadian Zibo Cogeneration Co. Ltd. Oct. 26, 2004 Indiana, PA, US

24. History and present installed capacity • Built in 1952 • 1969, 160MW, closed on 1999 • 1996, 290MW (+2x65MW) • 2003, 2x135MW CFB units • Present: 447MW (4 units: 2x135+2x88.5)

25. Organization Chart General manager Deputy managers, Chief engineer administration Logistics & community Heat service operation boiler turbine I & C chemical fuel electric

26. Statistical Data • Total employee: 1095 • 240 operators, 4 shifts • 6 workshops & 1 heating service company • Boiler, turbine, electric, control, chemical plant, fuel • Heating service company: industrial + residence • Logistics and community • Hotel, food service, hospital, estate management and community management, etc

27. New CFB units in Zibo Cogeneration Co., Ltd. Overview of power plant Central control room #3 CFB unit

28. Parameters of the 2x135 MW reheat CFB boiler Manufactured by Harbin Boiler Company, Ltd.

29. Some parts of the CFB boiler

30. Boiler master control diagram

31. Ash cooling systems

32. Flue gas system

33. Training simulation center

34. Problems encountered in operation • Unstable coal supplies • Have to use different coals from time to time • Erosion • Mainly in the conjunction part of refractory and water wall • Protection shield and coating helps a lot • Blocking of ash removing system • Mainly related with burning of high ash content coal • High carbon content in flyash • Breakdown of refractory

36. Thoughts of cooperation in CFB field • To set up a platform to enhance China-US communication and cooperation in industrial level on CFB field • Three layers of possible cooperation • Communication: contacts, personnel visits & exchange, …, to help understand culture, general energy situation, structure of industry and running manner • Experience exchange in CFB operation, maintenance, equipment procurement,… • Future business development in both countries

37. END It is our sincere hope to set up good connections with ARRIPA and all associated plants. Welcome to Zibo!