Energy-efficiency in IPPC permitting

Energy-efficiency in IPPC permitting a challenge to the licensor • by • Gerard Roukens • RouCo B.V. (NL) UBA conference, Vienna, 21/10/2004 1

Licensor’s raison d’ètre • Guard over safe and sound conduct • Executing IPPC & BREF • However: • - silently stripped of authorities • - new instruments -> BAT on the decline 2

New Instruments • NOx trading • CO2 trading • EE benchmarking Equivalent to BAT? 3

Efficiency definitions ??? • CO2 trading in IPPC  • discard BAT on efficiency? • E-efficiency • C-efficiency • G-efficiency 4

Gas engine (example) 5

Lean-burn gas engine HC/CO emissions CO: cold walls CH4 + O2  CH2O + ………formaldehyde C2H6 + O2  C2H4O + ……acetaldehyde CH4 + O2  C2H4 + ………ethene CH4 + O2  CO + ………..carbonmonoxide CH4: unreacted, misfiring, crevices…..methane (gas slip) piston ‘Traditional’ emission profile ) CH4: 300 g/GJ (1,65% gas slip) C2H6 30 g/GJ C2H4 15 g/GJ CH2O 10 g/GJ C2H4O 1 g/GJ CO 150 g/GJ Note: large advanced engines have tendency towards much higher HC emissions. *) within a wide spread 6

LB gas-engine cogen: electr 42 % total 90 % E-efficiency vs. G-efficiency(example) Seperated generation CC-plant: electr 56% Gas boiler: heat 90% Fuel saving 22%  CO2 reduction 22% 5% methane slip at engine: emission in CO2-equiv is equal 7

Getting aquainted with the licensor • E-efficiency: a new and difficult subject ! • Can the licensor deal with it? He is already overworked and swamped in rules, regulations, procedures etc. Does he recognize, for instance,.….(next slide) 8

Basic Thermodynamics Carnot cycle in the Mollier-diagram The basic Rankine cycle 9

Basic Thermodynamics Rankine cycle with single reheat Brayton-Rankine combined- cycle 10

PC-plant efficiency • LHV 100% • Ash-removal, stack & radiaton losses 8% • Available heat 92% • Cycle eff. 49% gross output 45% • Internal use 2,5% pt net output 42,5% • Transmission 2% ptend-use40,5% • Performance rating: very good 11

Advanced Power Plants PC plant  ~ 46% net electr. efficiency (super-critical, double reheat) CO2 capture + compression: electr  10% pt, yet economic for EOR Combined cycle: net base-load eff 58+ % (Baglan Bay / GE H-type GT) Repowering existing plants en-vogue. NL experience: topping with GTs  electr  6 % pt 12

Elsam Kinder Morgan CENS Project • CO2-Emission reduced by 90 % • SO2-Emission capture is 99+ % • NOx-Emissions reduced by 85 % • Cost of capture < $25 /tCO2 CO2-Norway Capturing CO2 from Coal-Fired Power 13

Elsam Kinder Morgan CENS Project CO2-Norway Capturing CO2 from Coal-Fired Power 14

Back to the licensor • Subject is complex! • Qualifications licensor? • IPPC-Brefs? BAT by 2007? • Not across the fence! 15

Example of ‘not across the fence’ • New CC plant • Adjacent facility operates old boiler • No big deal cut no cogeneration • Small stm-line / duct-burner + stm letdown 16

Energy efficiency benchmarking? • Req’mnt: comply with world-top (e.g. best 10%) • Seemingly fair • However: process is tedious, problems numerous, results debatable Simple truth: EE belong to the best-kept secrets; thus, hard to extract. 17

Organisational aspects: 1. A non-public expert body  facilitator  Some problem areas (1) Tensions / confusion regarding responsibilities & specific tasks relative to licensor. 2. Process transparency and public access to meaningful information difficult to ensure. 18

Some problem areas (2) • Methodological aspects: • Product-slate & feedstock (variable or special) • Plant BL (uncertain) • Multi-plant facility (averaging eff?) • Value of electricity & other en. carriers (reference plants) • Savings by cogen (to steam?) • Masking bad process efficiency thru cogen • Limited benchmark (few plants or low response) 19

Some problem areas (3) • Re. power plants: • World  not one level playing field • Plant-size counts • Load-factor counts • Reliable annual efficiencies hard to get estimated cycle efficiencies unacceptable Note: In Holland: Industry’s Kyoto targets unlikely to be realized by BM; for a major province ave. efficiency in 2000 already at level of ‘world-top’ for 2013. 20

Hope for the licensor? • Yes! • The EIA stipulated by EC-directive 85/337 • Strong by amendments 1997 & 2003: • Virtually all activities covered • Plant modifications also covered • Public information secured (Aårhus) • Explicit about contents of EIA, e.g. factor climate, long-term effects, alternatives, envisaged measures EU-BREFs fit in well! (integrated approach) EIA-update to be pursued for periodic license update. 21

Economics: a trade to be mastered • Efficiency measures give revenues, not only costs. • Investments are based on: Internal Rate of Return on Equity (IRQ) • Loans affect IRQ favorably (risk-sharing in volatile market) • Criterion: 10 – 12% IRQ, after tax (refer example next) 22

400 MW PC-plant Investment 400 mln € Coal-price 25 €/ton 1) Price of Electricity [€/MWh] 30 2) 33 pre-tax post-tax pre-tax post-tax IRQ (100% equity) % 12,3 9,7 14,9 11,7 IRQ (50% equity) % 15,4 12,7 19,6 15,8 • Due to weakening dollar and oil-price turmoil, the coal-price has skyrocketed over the last eighteen months, up to 50-55 € /ton. • PoE to be increased by 2,5% per 10% rise in coal-price to maintain constant IRQ. IRQ for PC power plant Simulation on a 400 MW super-critical / super-clean PC plant, recently built. 23

The EndThank you for listening…. 24

Energy-efficiency in IPPC permitting