Disney

Cogeneration Plants
for Industrial Application
Stefan Linder, Siemens Industrial Turbomachinery, Inc.

Cogeneration for Industrial Application

Content
Siemens Power Generation Inc.. All Rights Reserved

z Introduction to SIEMENS Industrial Turbines

z Cogeneration Principles
z Cogeneration Solutions
z Cogeneration Benefits
z Market conditions in Mexico
z Case Study
z Summary
Power Generation

Introduction to Industrial Turbines

SIEMENS Power Generation

incorporates multiple technologies
Siemens Power Generation Inc.. All Rights Reserved

Industrie
Turbinen
Power Generation
KWU AG

AEG

KWU

Industrial
Applications

Westinghouse
Mannesmann Demag

DemagDelaval

Delaval

I-Segment
ASEA

ABB

BBC
Ruston

GEC

Alsthom
1960

1970

1980

GEC
Alsthom
1990

ABB
Alstom
Power

Alstom

Alstom
2000

2003

Source: CS4

Power Generation

Gas Turbinen

Steam Turbines (MW)

(MW)
340

SGT5-8000H
SGT5-4000F

278

SGT6-6000G

266
198

SGT6-5000F

SST-9000 1500 U/min

SST-8000 3000 U/min
SST-6000
SST-5000

188

SST-4000

SGT6-4000F

185

bis 240

SST-3000

100 - 220

163
121

SGT6-3000E

110

SGT6-2000E
68

SGT-1000F

SGT-600

25
17

SGT-500
SGT-400

13

SGT-300

SGT-200

SGT-100

Industrial Turbines

150 - 1200

bis 140

SST-1000

100

SST-900

180
150

SST-700

30

SGT-700

SST-2000

SST-800

45

SGT-800

500 - 1900

130 - 700

SGT5-3000E
SGT5-2000E

500 - 1900

130

SST-600

100

SST-500

85

SST-400

65

SST-300
SST-200

50
10

SST-100

SST-50

July 2006 Acquire of

Kuhnle, Kopp & Kausch ST 45kW5MW
Power Generation

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Broad Product Range

Siemens Power Generation Inc.. All Rights Reserved

Small Industrial Gas Turbines:

Output from 5 to 13 MWel

SGT-400
SGT-400

SGT-200
SGT-200

SGT-100
SGT-100

SGT-300
SGT-300

Gas Turbine

SGT-100

Output (MW)
Efficiency (%)
Pressure Ratio (-)
Mass Flow (kg/s)
Exhaust Temperature (C)

5,3
30,5
15,3
20,8
530

SGT-200
6,8
31,5
12,3
29,3
466

SGT-300
7,9
31,1
14,0
29,8
537

SGT-400
12,9
34,8
16,7
39,4
555

Power Generation

Medium Industrial Gas Turbines:

Output from17 to 67,5 Mwel
SGT-800

SGT-500

Gas Turbine
Output (MW)
Efficiency (%)
Pressure Ratio (-)
Mass Flow (kg/s)
Exhaust Temperature (C)

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SGT-600

SGT-700

SGT-500
17,0
32,1
12
92,3
375

SGT-600
24,8
34,2
14
80,4
543

SGT-700
29,1
36,0
18
91,1
518

SGT-800
45,0
37,0
19
130
538

SGT-1000F
67,5
34,8
15,8
192
590

Power Generation

Steam Turbines from Grlitz, Finspong,

Brno,Taubate and
Baroda, Output 2 to 85 MWel
SST-200

Steam Turbine

SST-300

SST-400

SST-500

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SST-100

SST-100

SST-200

SST-300

SST-400

Output (MW)

2 - 8,5

3 10

10 50

28 - 65

6 - 85

Live Steam Pressure (bar)

65

80

120

120

30

480

520

520

350

Live Steam Temperature (C) 480

SST-500

Power Generation

Steam Turbines from Grlitz and

Finspong
Output 5 to165 MWel
SST-700

SST-800

SST-900

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SST-600

Steam Turbine

SST-600

Output (MW)

5 100

Live Steam Pressure (bar)

140

165

140

140

Live Steam Temp. (C)

540

585

540

540

SST-700

SST-800

SST-900

40 130

50 150

60 - 165

Power Generation

Cogeneration Principles

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Gas Turbine in Simple Cycle

64%

36%

100%
Fuel

Power Generation

11

Gas Turbine in Cogeneration

Waste Heat
Recovery
Unit

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12% Losses

52% Heat

36%
Electric Power

100% Fuel

Power Generation

12

Gas Turbine in Combined Cycle

with Back Pressure Steam Turbine
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Steam Turbine

15%

14%

520 oC
Boiler

275 oC

Gas Turbine

Process
Industry
35%

50 oC
36%

100% Fuel
Power Generation

13

Technology Trend in Favour for

Cogeneration
Thermal efficiency (%)

60
50

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70

Combined cycle
Steam turbine plant
Gas turbine

40
30
20
10

1900

1920

1940

1960

1980

2000

2020

Power Generation

14

Cogeneration Solutions

Demand profiles include:

zPower and heat requirement
Utilities

zEfficiency in part load, base load, peak load

zTotal efficiency (power and heat)

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Every industrial power plant has to be

optimized for the end-user profile

zPeak load, min load operation (heat and power)

zFlexible relation of heat and power generation
Process Industry

zLoad variations / load rejection

zStart-up time and power ramp-up
zEmissions (NOx, CO2, etc.)

Manufacturing Industry

Power Generation

16

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Typical Industries Suitable for Cogeneration

Cogeneration solutions for

Industries
z Chemicals and Petrochemicals
z Pulp & paper
z Food & beverage
z Sugar
z Automotive
z Metalworking
z Mining
z Cement
z Wood processing
z Textiles

Power producers
z Utilities
z IPPs
z Municipal CHP
o

Power Generation

17

SIEMENS SGT-300 gas turbine with Heat

Recovery Steam Generator, producing
power and process steam for a Paper Mill
z Electric output 7.9 MW
z Process Steam 22t/h

Power Generation

18

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Typical Industrial Cogeneration Plant

Cogeneration Benefits

Cogeneration Benefits

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z Reduced Energy Cost

Higher fuel utilization and efficiencies gives energy savings

z Improved Electric Reliability

Less instantaneous and prolonged outages plus better power quality

z Improved Environmental Quality

Lower green house gases and NOx emissions

Power Generation

20

z Electrical and Thermal Load Coincidence

The more a facility needs electricity at the same time it needs thermal energy,
the more attractive the savings and payback associated with cogen become.
Good match will give higher fuel efficiency and quicker payback
z Cost Difference Between Electricity and Natural Gas
The higher the difference between the cost of buying electricity power from the
grid and the cost of natural gas, the more attractive the savings and payback
associate with cogen become. For a favorable payback the spark spread
should be at least $12 per MMBtu or USD 0.03 per kWh
z Long Hours of Operation
Cogen plants generally operates when production cost of electricity is lower
than the purchase cost and when the facility is in need of process heat. This
time should be minimum 3000 hours annually but preferable more than 6000
hours
z Electricity Power Reliability and Quality
When power reliability/stability is an issue then cogen may make more sense
Power Generation

21

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Determining Cogen Potential

- Financial Attractiveness -

Cogeneration Barriers

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z Uncertainties
z Electric restructuring creates uncertainty in electricity pricing and reliability
plus a wait and see attitude
z Gas price volatility creates uncertainty in savings and a fear of the
unpredictable
z Electricity utility position Ambivalent at best Hostile at worse
z Costs and Paybacks
z High first cost discourage investment despite energy cost savings
z Under estimated cogen value as avoidance of electric outages and reduced
overall emissions
z Unfavorable utility tariffs Standby charges Backup rates Exit fees
z Installation Issues
z Permitting process sometimes may be long, cumbersome and costly
z Grid interconnect Inconsistent standards complex process
unpredictable / high costs
Power Generation

22

Market Conditions in Mexico

z Self supply and Cogeneration allowed by law but with restrictions

z Power supply reliability in some area is low
z Charges for power during peak hours can be 3 times the average rates
z Rates for back up power are high
z Electricity market is not fully deregulated some limitations remain
z Export of excess/surplus power to the grid possible but limited to 20 MW at
unfavorable rates and subjected to dispatch
z Wheeling of power to own needs and partners is possible if no grid
constrains exists
z Trading of CO2 emissions have begun and will improve the economical benefits
with cogeneration, current rates 7-10 USD per ton

Power Generation

24

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Mexican Cogeneration Market

Cogeneration Case Study

Plant Assumptions
- Reference Case Siemens Power Generation Inc.. All Rights Reserved

z Buying electricity power from a external supplier

z Producing process steam inhouse with gas fired boiler
Technical Requirements
Average power demand

Economical Assumptions
12.9 MW

(equal to SGT-400 output)

Average process steam demand 16.7 MWth
(saturated 25.5 t/h 12 bara)
Base load operation annual

8,760 hours

z Average electricity purchase

price 6.5 cent/kWh
z Average gas fuel purchase
price 7.0 USD/MMBtu
z Escalation rate per year 3 %

Power Generation

26

SGT-400 Cogeneration Data

- Cogen Case -

Cogen Plant Technical Data

Economical Assumptions

Electric output

12.9 MW

Process steam output

16.7 MWth

z Average electricity purchase

price 6.5 cent/kWh

(saturated 25.5 t/h 12 bara)

Annual operation hours

8,400

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z Generating process steam & power in a cogeneration facility

z Average gas fuel purchase

price 7.0 USD/MMBtu
z Estimated investment cost
$8,800,000
z Interest rate 10%
z Operation and maintenance
cost 5.5 USD/MWh

Power Generation

27

SGT-400 Cogeneration Performance

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19%
46%
1-pressure
HRSG
Gas Turbine
35 %

Pgt
Pst
Paux
Pnet
Heat duty
Qfired

100 % fuel

12.99
0
0.03
12.96
16.81
36.62

Alfa
Net electrical efficiency
Net total efficiency

0.77
35.4
81.4

MW
MW
MW
MW
MJ/s
MJ/s
--%
%

Power Generation

28

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Annual Savings

Financial Summary
Simple Payback 2.6 years
Net Present Value (15y) 21.7M$
Power Generation

29

z Energy intensive industrial users have begun to build integrated cogeneration

solutions, sized after their facility demand
z Some industries focus on reliable power supply only by installing reciprocate
peaking units, which is only a partial solution, missing the cogeneration
benefit
z Process energy intensive industries are upgrading their energy plants with
cogeneration solutions to benefit from higher fuel utilization factor
z Beside demand for high reliability, spark spread between price of electricity
and natural gas are justifying investment in industrial cogeneration solutions
z Participating in CO2 emissions trading will future more improve the
economical benefits with cogeneration and decrease industries energy cost

Power Generation

30

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Summary Industrial Cogeneration

Thank You !
Presented by: Stefan Linder
Gas Turbine Marketing Manager
Office Phone: +1-281-856-4450
Cell Phone: +1-281-787-3475
e-mail: stefan.l.linder@siemens.com