Therefore, the risk of sulphuric acid dew point attack is minimal as the dew point is well below the

gas exit temperature. However, some HRSGs are fed with exhaust gas from GTs burning a slightly sour gas, up to 2000 vppb sulphur equivalent. While operation at base load provided a gas exit temperature above the sulphuric acid dewpoint, operation at part load reduced the gas temperature at the outlet of the condensate pre-heater to the point where the dew point was breached and sulphuric acid deposition occurred (Figure 31). This particular plant cycled between base load and part load on a daily basis. The deposit layer was very highly concentrated sulphuric acid, which also attracted very fine particles of siliceous material and particles of gas duct internal lagging. The fact that the sulphuric acid remained highly concentrated precluded corrosive attack on the tube or finning, while the plant was in operation. Off load moisture ingress into the HRSG via the rain damper mobilised some of the acid deposits down the casing walls. One option being considered to prevent further deposition is to bypass the preheater at low loads (a bypass line is fitted), although this would result in a further performance penalty.

Figure 31: Condensate preheater deposits (Courtesy of Power Technology).

3.6

Control and Instrumentation Issues on HRSG Plant

Modern CCGTs are operated with a large degree of automation to minimise the risk of plant trips and other damaging incidents. Automated sequences are used for common plant procedures such as start-up and shutdown, minimising the participation of the operator and hence the risk of error and variability between the actions of different personnel. However, these sequences can stop partway due to failures on field devices such as limit switches and thermocouples. Moreover, control and instrumentation problems on some plants mean that a high level of spurious and consequential alarms may be

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initiated and presented to the operator. In this situation, there is a danger that important alarms could be overlooked, leading to a higher risk of plant trips. Some of these problems are related to the presence of poorly specified instrumentation, particularly actuators and valves, and this means that upgrading of such equipment is an ongoing process on new plant. It is known that the incidence of plant trips that are control and instrumentation related drops considerably in the first months and years of operation from levels that can be as high as 50% during commissioning. It is vital to eliminate spurious trips due to faulty instrumentation early in a plants lifetime, as these are very damaging. For example, calculations performed on a P91 superheater header with full penetration welds under an optimised hot-start/shutdown procedure demonstrated that a hot restart following a unit trip is 41 times more damaging in terms of thermal fatigue damage than a hot start following a normal shutdown [51]. The level of detail provided on some sequence displays is often insufficient to identify the plant condition preventing a sequence from progressing. The sequence logic is often so complex that even minor faults can be difficult to pinpoint and rectify, with sequences having to be overridden manually and stepped through to try and identify the sequence hold. It is usually essential to have a member of staff proficient in control and instrumentation issues available to deal with any automation related problems that may arise. The start-up of a unit can be potentially influenced by a wide range of active operational constraints generated from within the GT itself and also from the HRSG and the ST. These constraints adversely affect the run-up process by inhibiting firing on the GT until the current active constraint has been relieved. This gives rise to the risk of variable run-up times for each start-up on each unit and clearly becomes even more relevant in the event of moving the operational regime away from base-load. Faults with field devices can exacerbate this, making it difficult to predict overall run-up and loading times with absolute accuracy. The above factors have become highly significant under the New Electricity Trading Arrangements (NETA), where significant financial penalties can exist for not getting up to load on time. 3.7 Flexible Operation of HRSG Plant

To take economic advantage of fluctuations in the wholesale price of electricity, it has become advantageous within certain markets (particularly the UK) for generating plant to operate flexibly. This may involve regular twoshifting where plant is taken off load for several hours overnight, shut down at weekends and/or fluctuations between full load and part load or minimum stable generation. In the UK, the volatility in gas price and increased dominance of gas generation also means that companies with a portfolio comprising generation reliant on more than one fuel source can make up their contracted output as they see fit. These factors have resulted in many CCGTs (and hence HRSGs) designed for largely base-load operation being subjected to a flexible operating regime, with many plants conducting daily starts for at least part of the year. Many of the effects of flexible operation on HRSG

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components in terms of thermal fatigue damage, cycle chemistry and control/instrumentation are described in Sections 3.3, 3.4, 3.5 and 3.6 above. As far as the HRSG is concerned, the effects of load fluctuation are small compared to those arising from plant shutdown/start-up where the temperature differentials and ramp rates involved are much more damaging in terms of fatigue life. Power Technologys approach to assessing the level of risk to HRSG components under a flexible operating regime is to carry out a flexible operation study, which is conducted in three phases: Phase 1 involves establishing the existing level of instrumentation on the HRSG and highlighting those that would be required for a series of monitored flexible operation trials. The critical HRSG components at risk of early failure/increased degradation or that could create operational problems under a flexible operation regime are also identified based upon station-specific HRSG component materials and geometry, inspection results, previous flexible operation experience and known problem areas on the plant being studied. The number and location of additional instruments (typically thermocouples on boiler headers and stubs) required for flexible operation trials are then specified, with their installation justified against the potential risks identified. Thermocouples can also be fitted to structural components such as expansion joints, duct supports, casings and so on to quantify the temperature differentials across them. A desk study of the effects of flexible operation on water/steam chemistry would also be completed and would typically review phosphate hideout and its control, flow accelerated corrosion risk in low temperature / pressure circuits, water treatment plant capacity, steam quality at start-up, de-aeration capability on start-up and condenser integrity. After the additional instrumentation required had been installed, a programme of shutdown/start trials would be agreed with the station for Phase 2 and all plant data received would be processed and analysed. The extent of any damaging transients (specifically ramp rates, through-wall temperature differentials and peak temperatures) would be quantified and a detailed thermal fatigue stress analysis carried out on the worst affected components. The damage would be quantified with the results expressed in terms of impact on component life and the likelihood of any failure mechanisms. In addition, one or two starts would be observed on site to fully understand any operational problems being experienced at first-hand. Appropriate recommendations to manage any issues identified would then be made. These might typically include enhanced, targeted non-destructive testing/visual inspections, proposed modifications to operating procedures to minimise impact on HRSG components and/or changes to the cycle chemistry. Phase 3 (if required) would explore in more detail with the station the feasibility of any proposed modifications to operating procedures in order to reduce component damage and / or reduce start time. Where the required changes are significant, it may be necessary to widen the scope of the study to (72)

include the gas and steam turbines and to investigate the implications for control and instrumentation. Trials of the optimised two-shift procedure would then be carried out and the extent of improvement assessed. Many of the design features that determine how flexible a HRSG is are described in Section 3.2. However, the quality of manufacture and construction and the operational procedures adopted also play a key role in ensuring that the effects of flexible operation (predominantly thermal fatigue damage) are minimised. Manufacturers are aware of the threats posed by cyclic operation, and have already started to address the issues raised by the flexible operation of power plant in response to customer demand. Both vertical and horizontal gas flow designs can be equally suited to flexible operation providing sufficient measures are taken during the design stage. Horizontal gas flow designs tend to be more susceptible to flexible operation damage due to lack of flexibility between the header systems (particularly if bottom-supported), though this is being addressed on more modern designs. The use of serpentine tube banks on vertical gas flow HRSGs inherently makes them more mechanically flexible, although there can be difficulties with drainage of the horizontal tube banks leading to the risk of off-load corrosion. Relatively simple ways of improving the ability of an HRSG to withstand the rigours of flexible operation include the correct sizing of drains and vents and the use of bypass valves and recirculation systems. GT and control and instrumentation reliability are important in avoiding trips, as hot re-starts are particularly damaging to upstream HRSG components. More substantial features such as the inclusion of a stack damper or the use of higher-grade alloys to reduce component thickness should be made at the design stage, as these are much more expensive to retrofit later in the plant life. 3.8 3.8.1 HRSG Costs, Reliability and Maintenance Capital Cost

Capital costs for new build CCGT plant are difficult to predict accurately without going out to tender, and even then a wide spread of costs can be possible at any given time. However the approximate total project cost for a new build CCGT in the UK [52] is estimated to be in the region of 425/kW. This includes not only the EPC (engineer/procure/construct) contract, but also other items such as project management, connection to gas/electricity networks etc. The HRSG it likely to account for around 10-15% of this total. This is still significantly lower than for other forms of fossil fuel generation e.g. the equivalent capital cost for a new build advanced pulverised fuel plant is around 800/kW [53]. CHP plant capital expenditure is generally more expensive at around 750/kW [52] with the HRSG likely to account for 10-15% of this total.

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3.8.2

Operating Costs

Fixed operating costs, excluding fuel, are estimated to be around 12/kWyear for an existing CCGT plant [54], although this could be higher for the most advanced class of GT plant due to GT maintenance costs. Generally, though, this represents the lowest value across the range of fossil fuel plant, the next lowest value being that of 14/kW for an existing coal fired plant without FGD. These CCGT fixed operating costs will again be dominated by the gas turbine, perhaps even more so than with the capital costs. Taking into account all costs (fuel cost at 23p/therm, fixed operating cost and cost of capital), the estimated delivered energy cost for a CCGT in the UK is around 2.2p/kWh [53]. 3.8.3 Reliability

Reliability/availability will vary greatly depending upon the original build quality and design of the HRSG, the operating regime and the maintenance performed. EPRI [55] predicted theoretical total availability of a drum type HRSG to be 98.52% e.g. 1.48% availability loss. Powergen data from 19971999 [56] suggests a figure of around 0.2% average HRSG availability loss, which may be due to the relative youth of the plant and a fairly tight functional specification. The losses [56] appear to be mainly due to one of three causes; tube leaks, leaks from flange connections or trips due to incorrect (high or low) drum level on start up. A survey of the causes of tube leaks on Powergen CCGT and CHP plant indicates that around 50% are due to wear out mechanisms such as flow accelerated corrosion, fretting, long term overheating, on load corrosion, stub weld cracking etc. The remaining 50% can roughly be categorised as arising either from original manufacturing (usually weld) defects / previous site repairs or of being of a miscellaneous nature [57]. 3.8.4 Maintenance

As well as the scheduled routine maintenance (e.g. valve/pump maintenance, safety valve maintenance and testing, instrumentation checks, etc), typical preventative actions would include annual HRSG visual inspections of: HRSG/duct supports, expansion and alignment. HRSG/duct external framing & internal stiffeners. HRSG/duct internal insulation (if fitted). Bypass damper and stack. Main HRSG stack. Tube modules and headers. Duct fabric expansion joints (including thermal imaging whilst on-load to identify areas operating at above-design temperatures and areas of gas leakage). The condition and tightness of pipe penetration seals The condition and movement of main feed and main steam pipe supports.

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The following measures are also typically taken during major outages to guarantee the continued integrity of the HRSG through its design life (which may range between 15 and 30 years): 3.9 Sample header / drum internal inspections for corrosion/debris, thermal fatigue, blockage and/or FAC of orifices. Measurement of creep pips (header diametrical measurements). Sample header end-cap and butt weld inspections. Pipework butt-weld inspections. Tube sampling/thickness checks (for flow accelerated corrosion and offload corrosion). Valve casting inspections. Industrial HRSG Applications

HRSG applications are more diverse at the industrial scale and can be broadly classified as below. 3.9.1 Industrial Gas Turbine HRSGs

At the small scale, gas turbines may be used in smaller CHP schemes or to provide shaft power e.g. for pumping stations on gas pipelines. In CHP schemes the demand is usually for process steam (e.g. for enhanced oil recovery) and the generation of electricity by using a GT to burn the fuel and generate electricity rather than just burning it in a boiler is an economic bonus. Because the provision of steam to the process is usually the paramount concern, an auxiliary burner is usually fitted to allow continuation of boiler operation even when the GT has tripped. In this case a fresh air inlet duct is needed. Units may also be installed for marine use in gas turbine driven ships, floating production storage and offloading vessels (FPSO) and offshore platforms. GT based CHP schemes typically achieve an electrical efficiency of around 23% (GCV) and a heat efficiency of around 49% (GCV) [7]. In recent years a new breed of microturbines has been introduced, based on turbocharger rather than aero-derivative technology. These are usually in the range up to 0.5MWe, at which scale the aero-derivative type becomes more economic. At present a typical microturbine unit from Bowman Power Systems has an output of 80kWe and a thermal output of 130 260 kWth in an exhaust gas stream at a temperature of around 600C [58]. Most units installed so far have recovered heat as hot water, but in some specialised applications steam has been generated. 3.9.2 Reciprocating Engine Exhaust Gas Boilers

Internal combustion engines may be used on a small scale for electricity generation and HRSGs may be added to run in combined heat and power mode. Low grade heat is usually recovered as hot water from the engine cooling circuit. Higher grade heat may be recovered from the exhaust as steam. Normally smoke tube design package units are used to generate saturated steam. Engines may be run on liquid or gaseous fuels. Increasingly, alternative fuel sources are being used, such as landfill gas, coal mine methane (75)

and bio-gas from anaerobic digestion of sewage sludges, agricultural wastes and industrial wastes. Reciprocating engine based CHP schemes typically achieve an electrical efficiency of around 27% (GCV) and a heat efficiency of around 42% (GCV) [7]. 3.9.3 Heat Recovery from Other Industrial Exhaust Gases

HRSGs are used to recover energy from the hot exhaust of other industrial processes such as: Glass and metallurgical furnaces Kilns (e.g. sponge iron plants): Coal based high temperature reduction of iron ore produces a flue gas with a temperature in the range of 10001200C and a dust load as high as 40gNm-3. The first stage of the heat recovery system is a radiant section with water membrane panel walls where the gas is cooled to around 750C to reduce the risk of slag deposition on downstream heat transfer surfaces. This is followed by a plain tube superheater fitted with soot blowers and evaporator and economiser sections. Roaster based plants: a typical application is in roasting of pyrite ores. Pyrite ores are oxidised in a fluidised bed to produce the oxide required for manufacture of the primary metal. The flue gases contain sulphur dioxide and are at a temperature of around 900C with a high dust load. The Thermax design [59] uses a water tube boiler to recover heat. A vertical tube alignment and a wide tube pitch are used to minimise problems of dust deposition. A hammering device dislodges dust from the tubes into hoppers below from which it is continuously removed. Smelters and converters: for example in copper and zinc smelting. The high temperature waste gas has a very high dust load. The heat is recovered in two stages. In the first stage the gas passes through a large water membrane walled radiant section where some of the dust and slag is allowed to settle. The partially cleaned and cooled gas then passes through a conventional convection section with vertical bare tubes, again fitted with hammering devices to dislodge dust [59]. Coke ovens Solid / liquid / gas waste incinerators VOC thermal oxidisers Process Integrated HRSGs

3.9.4

Many process industries use HRSGs to recover heat from the necessary cooling of process gases. Industries include: Petrochemicals (e.g. in sulphur recovery units) Sulphuric acid plants: The double conversion double absorption process for the manufacture of sulphuric acid from elemental sulphur generates considerable heat in the exothermic conversion of sulphur to SO2 and SO 3 gases. The optimum working temperature for the V2O5 catalyst is about 440C, so it is essential to have a process integrated HRSG in the system to cool the gas to this temperature.

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Nitric acid / Caprolactum plants: nitric acid may be manufactured by the catalytic oxidation of ammonia at around 950C to give a gas rich in nitrogen oxides. The next step of the process requires a gas temperature of around 250C creating a requirement for a HRSG. Either water tube or fire tube designs may be used in either case the design needs to take into account a typical gas side pressure of 5 7 barg. Ammonia plants Hydrogen gas plants Fluidised catalytic converter units

3.10 Conclusions Current state of the art utility scale HRSGs operate at HP steam conditions of up to 124 bar/565C and allow the associated CCGT to deliver electrical power at a claimed net efficiency of up to 60%. They are generally two pressure or three pressure with reheat, and may be of either vertical or horizontal gas flow. The capital cost of new-build CCGT plant is around 425/kW, with the HRSG accounting for 10-15% of this total. The estimated delivered energy cost for a CCGT in the UK is around 2.2p/kWh. Current state of the art industrial HRSGs generally operate at lower steam conditions than utility scale plant, and are usually of single pressure design. They are integrated into a wide range of industrial plant and often include provision for supplementary or auxiliary (stand-alone) firing. Highly fired units may incorporate a water-cooled furnace. Lower pressure industrial boilers are usually of shell rather than water tube design. Designs tend to be bespoke for particular process applications. The recent trend has been for CCGT plant to be built under turnkey contract. Whilst this does have advantages to the user in terms of accountability, it does tend to mean that the user has less influence on the detailed HRSG design. Operational experience with HRSGs indicates that inclusion of specific design features and attention to detail during fabrication are just as important as the overall HRSG design, and that non pressure parts can be as problematic as pressure parts. Key areas for improvement include build quality, access for in service inspection & maintenance, control & instrumentation and capability for flexible operation. Overall cycle chemistry philosophy also needs to be more thoroughly considered at the design stage.

The current challenge for operational HRSGs, particularly in the UK, is the need to cycle plant which has been designed for and/or previously operating at base load. Many users are currently carrying out investigations/trials and plant modifications.

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4
4.1

NEW AND DEVELOPING TECHNOLOGIES

Introduction

This chapter describes and reviews HRSG technologies which are envisaged as becoming available in the near and longer term. A number of HRSG suppliers and users were consulted during the preparation of this report about technological developments and the need for further research. The consensus of opinion amongst those consulted was that the technology is mature and that large or revolutionary advances in technology are not expected. However, small incremental improvements are expected to continue. None of the industrial scale companies consulted stated that they have research projects of their own going on currently. At the industrial scale, most businesses are not large enough to take on large R&D commitments. Developments at the utility scale, such as the use of higher temperature materials, will cascade down to the smaller industrial scale market eventually and give gradual advances. A number of new applications or small areas of technological advance were identified and the following specific categories have emerged: 4.2 4.2.1 Developments in the design of HRSGs themselves. Developments in other parts of combined cycle plant or the overall cycle. New applications. Developments in HRSG Design Utility Scale Once Through HRSG Designs

In terms of components, the once-through steam generator is the simplest HRSG design for recovering heat from the exhaust of a gas turbine. Water entering at the cold end of the gas-pass, moves through a serpentine tube bundle where heat absorption occurs and a phase change takes place, and exits as superheated steam. The circulation ratio is one and there is no requirement for circulation pumps. Conventional (i.e. not once through), sub-critical HRSGs utilise drums in which steam and water from the evaporative part of the cycle are separated. The water is then recirculated within the evaporator with additional feedwater while the steam passes to the superheater for further heating. Supercritical pressure boilers cannot utilise this type of design as there is no distinct water/steam phase transition above the critical pressure. A once-through design is therefore required. The OTSG design also has advantages for flexible operation. The steam drum is the component in a conventional HRSG design with the thickest wall section and is therefore the most prone to the occurrence of stresses associated with differential thermal expansion. It is the limiting component in setting maximum heat-up and cool-down rates and a design that eliminates the drum is therefore better for flexible operation.

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Once-through technology has in the past generally been limited to projects based on aero-derivative or small industrial gas turbines. However, designs that can handle the larger frame gas turbines are now evolving. With regards to utility HRSG applications in the UK, once-through technology is currently at a demonstration stage with a full-scale once-through demonstration HRSG (supplied by Deutsche Babcock, now Babcock Borsig) currently in operation at Cottam Development Centre. This is a sub-critical Benson design with superheater steam conditions of 580C and 160 bar and is described further in Section 7.3.1. This technology, which originated with Siemens, is currently licensed to a number of other companies including Nooter/Eriksen. However in North America the commercial acceptance of once-through technology is far more apparent. ABB have 7 once-through (sub-critical) industrial sized HRSG units in operation and a further 23 under construction and are moving towards larger scale applications with a significant new 270 MWe once-through HRSG built recently at Agawam in Massachusetts. In addition, Innovative Steam Technologies (IST) of Canada won a contract for a once-through technology plant at Calpines Broadriver Energy Centre, although in this case the HRSG is only sized to provide steam for GT injection. Successful and extensive pilot trials have been undertaken by Cockerill Mechanical Industries (CMI) of Belgium in their Seraing works [60] with a view to achieving supercritical conditions in the once through HRSG. Indications are that HRSGs will gradually adopt once through technology and then move to supercritical pressures as gas turbines become larger and exhaust gas temperatures continue to increase. 4.2.2 Industrial Scale Once Through HRSG Designs

The application of the OTSG design to CHP plants is sometimes limited by the critical need for a continuous supply of steam for some users. In a conventional drum HRSG design there is a significant reservoir of steam and hot water in the drum. In the event of a GT trip, this will provide a buffer supply of steam to maintain the supply to the users plant while the auxiliary burner starts up and reaches the necessary output. The only water in the OTSG is in the tubes, which does not provide such a large reservoir of steam. For applications where maintenance of a continuous steam supply is critical, provision of steam buffer capacity needs to be investigated. The higher pressure drop on the water side of the OTSG has been identified as a minor disadvantage of the design. The development of new balanced header designs that distribute the flow evenly over all of the tubes will reduce this effect. 4.2.3 Reliability Improvements

Within the UK, as a direct result of the New Electricity Trading Arrangements (NETA) in England and Wales, generators and suppliers now have to contract directly with each other for the physical supply of power. The effect of this and similar legislation throughout the world on the plants themselves, is that (79)

many existing combined cycle gas turbine plants need to move towards more flexible operation than was initially envisaged at their design stage. This move from what was initially a system engineered for base loading to one with substantial requirement for two-shift operation has a detrimental impact on plant reliability, specifically with regards to the HRSG. For the plant, the main risk associated with the use of the HRSG under flexible operation is the impact on the achievable lifetime of pressure part and non-pressure part components such as tubes, headers, casing components etc. In general, a reduction in lifetime is expected resulting from causes such as Low Cycle Fatigue (LCF), localised header stresses and flow accelerated corrosion (FAC) and from a combination of LCF and Stress Corrosion Cracking (SCC). The challenge therefore faced by engineers is to design solutions that ensure the reliability of the next generation of HRSGs to be installed and upgrade the existing plants (by correctly sizing drains for example) before major problems occur. In order to do this companies have had to invest heavily in effective transient thermal modelling capabilities that allow them to analyse thoroughly every component of the HRSG and make design changes to limit thermal stresses. One such example where new features have specifically been designed to provide flexibility for the plant during thermal transients is with Foster Wheelers Fort Meyers repowering project [61]. This novel feature is a wet bypass unit which is designed to absorb the instantaneous power loss of a steam turbine trip and enable the gas turbine to continue operating at a full simple cycle load. In the event of the steam turbine tripping, main steam is attemperated and its pressure reduced, before it is bypassed to the condenser. Reheated steam is either bypassed to the atmosphere, when the condenser is not available or also attemperated and reduced in pressure before passing to the condenser dump. Thermal fatigue of the steam headers is greatly reduced by this innovative process. Likewise Alstom have adopted features specifically to reduce thermal stress at welded joints albeit at a potential increase in capital outlay. Most natural circulation HRSGs use a multiplerow harp-shaped design, comprising of one horizontal upper header and one horizontal lower header joined by two or three rows of vertical tubes. Alstom maintains that, the temperature of the exhaust gas drops sufficiently as it passes through the multiple tube rows to cause the individual tube rows to operate at different temperatures, inducing differential thermal stress at the weld joints. Their solution is to form a single row of tubes between headers to remove these differential stresses. As a single row allows for smaller header diameters, circumferential temperature gradients in the headers are also minimised. Alstoms analysis concluded that small-diameter headers reduce thermal stress by as much as 60% when compared to headers used with multiple rows.

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4.2.4

Modularity and Improved Maintenance Features

One noticeable innovation with regards to HRSGs is the drive towards modular designs. Aalborg Industries Inc., Alstom, Mitsui Babcock and Nooter/Eriksen are some manufacturers who have designed around the concept of modularity in order to exploit it as a selling point for their HRSGs. Aalborgs rapid delivery of standard units in less than 90 days alongside quick field erection of their pre-assembled, pressure-tested systems has won them a considerable HRSG business. This modularity extends to the point where some of the auxiliary features of the HRSG are already in place (e.g. feedwater systems, air and flue gas ducting, etc). Nooter/Eriksen incorporate a modular design to increase shop fabrication and minimise field man-hours. Their flexible construction method and attention to detail allows setting of up to five modules per day. Other manufacturers such as Foster Wheeler believe modularity to be advantageous. Their approach has been to make modules as large as possible leading to a requirement for fewer components to be assembled in the field. Foster Wheeler maintain that the increased constructability of their HRSGs helps reduce the risk of possible delays in the erection schedule and the financial penalties that may then result. Other companies have patented design features such as enhanced accessibility to their HRSGs. The manufacturer Deltak, for example, claims this very feature reduces repair time to half of the industry standard. 4.2.5 Control and Instrumentation

At the simple smoke tube design end of the industrial HRSG market, control technology is being improved. Up to date touch screen control technology is only now being introduced to these traditional designs in less demanding applications. 4.2.6 Highly Fired HRSG Designs

An increasing number of industrial scale HRSGs are being used to supply onsite power and process steam requirements. In some instances the steam demand substantially exceeds what can be supplied from the exhaust of a GT meeting the on-site power demand, so a high degree of supplementary firing is required. This results in a very hot, high moisture content gas flow and a need to fire down to low oxygen levels while still meeting emission limits for CO and NOx. Often the supplementary burners must be sized to maintain full steam output even if the GT trips. This creates design challenges for HRSG manufacturers. More exotic materials are required for highly fired HRSGs and water membrane walls are becoming more common in designs for these applications. These technologies are well established in fired boiler designs and are now being transferred across to HRSG designs.

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4.3 4.3.1

Improvements to Cycle and Other Plant Components Steam Cooled Turbine Blades

For the gas turbine, the maximum allowable inlet temperature is governed by both the materials available for the turbine blading and the cooling technique employed. Previous generations of gas turbines utilised air to cool turbine components in an open loop system. The cooling air was supplied from a bleed in the gas turbine compressor, and then ducted to the internal chambers of the turbine blades and discharged through small holes in the blade walls. This air provided a thin, cool insulating blanket along the external surface of the turbine blade. As a result, there is a significant exhaust gas temperature drop across the first stage nozzle and significant flow of air required to cool down the relevant turbine stages. An integrated closed loop steam cooling system significantly reduces this temperature drop in addition to eliminating the requirement for air bleed for the turbine cooling. This technology is envisaged as contributing around 2% points in thermal efficiency. The thermodynamic advantage of utilising steam in cooling circuits was recognised in the early 90s [6] (Figure 32). This has been developed accordingly over the last decade to allow integration of the HRSG steam flow with the gas turbine cooling loop to further enhance cycle performance. The implications of this on steam purity are significant if corrosion and fouling of the cooling passages is to be prevented. This is discussed further in Section 3.5.9.

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Figure 32: Effect of gas turbine cooling methods on efficiency (Courtsey of Innogy plc) [6].

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The worlds first operational steam cooled gas turbine, built by MHI, was commissioned in Japan in 1998 and installed in Unit 4 at the Higashi Niigata Power Station. In the United States, it was not until early 2001 that SiemensWestinghouse achieved commercial operation with a 360 MWe power plant located in Massachusetts followed immediately by a second 249 MWe plant in Florida. The gas turbine installed in the American plants is considered partially steam cooled, with just the first stage vanes being incorporated within a closed loop. Whilst specific teething problems were found during start up conditions of the W105G gas turbine, a cycle efficiency of ~58% (LHV) was achieved with this technology. More recently General Electric installed their first H-class unit at the Baglan Energy Park in South Wales. This unit, which features steam-cooled rotor and stator vanes, is currently under commissioning tests with engineers aiming to break the 60% (LHV) cycle efficiency barrier. 4.3.2 Fuel Heating

In the late 90s methods of heating fuel prior to combustion in the gas turbine were being introduced to the combined cycle in order to enhance efficiency. Preheating of the fuel results in a reduction in the amount of fuel needed to achieve a given firing temperature in the gas turbine. However, whilst the efficiency of the cycle improves, the plant power output is found to reduce slightly. This originates from the fact that when a gas turbine is fed warmer fuel, it requires less mass flow of that fuel to obtain the previous cold-fuel firing temperatures, thus the exhaust mass flow and water vapour content of the combustion products is lower. Less power is therefore obtained from the combustion gas expansion through the turbine. Furthermore the HRSG generates a little less steam from the decline in gas turbine exhaust mass flow and hence a drop in steam turbine power also occurs. However, the overall improvement in the cycle efficiency results from the fact that the energy diverted from producing steam power is of relatively low grade, and is better employed as a heating medium for the fuel. The fuel heating source may be either steam or water. For the case of steam this can originate from the steam turbine bleed or directly from one of the HRSG pressure level circuits. For the case of water heating, the hot water is drawn from the HRSG economisers. There is a threshold at which the benefits associated with the increase in efficiency are found to be at the expense of the level of electrical power produced [62]. For example fuel heating to around 200C from an intermediate pressure economiser exit water source on a typical three pressure reheat combined cycle, results in a net heat rate gain of about 0.6% with a corresponding net power loss of about 0.3%. If the temperature of the fuel was raised to around 300C by a high pressure economiser exit water source, the loss of power becomes more evident at 0.75% whereas the noted increase in the heat rate gain is less apparent as it only rises to 0.8%.

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4.3.3

Gas Turbine Steam Injection for Power Augmentation

The injection of steam into a gas turbine for NOx control is well established. Steam injection into the combustor reduces combustion temperatures by diluting both the level of oxygen in the combustion air and the heat generated from combustion of the fuel. However the use of steam injection for power augmentation is considered to be somewhat under developed for larger heavy duty gas turbines. Injecting large amounts of steam for power augmentation creates a fairly efficient power only plant that effectively makes the steam turbine, condenser and cooling tower in a combined cycle redundant. Aero-derivative engines such as LM 5000 and the Alison 501 were proven in the mid 80s to be suitable for steam injection power augmentation [63]. The LM 5000 can absorb all the steam generated from the heat recovered from its own exhaust, and in doing so increase its power output by up to 15%. The reason for the aero-derivative engines success at power augmentation was because aero-engines were initially designed to pick up load faster than heavy industrial gas turbines and consequently have a greater surge margin when operating in an industrial application. Some of this surge margin can therefore be exploited to accept steam injection. However the limited electrical generation capacity of these gas turbines (< 50MWe) means that the benefits of this application have been limited to mostly small scale industrial power supply uses. Although in some cases several of these aero-derivative gas turbines have been successfully combined to form a reasonably sized utility plant (i.e. 7 x 50MWe). Currently no gas turbine greater than 50 MWe has been designed which allows for such heavy steam injection that the need for a separate steam turbine is removed (as is the case for the LM5000). However, elaborate arrangements where steam/water is injected into large gas turbines are in the development stage, albeit that relatively few have actually been constructed. A current list and description of these proposals has been generated by Foster-Pegg [64]. Those which have reached demonstration status include: Simple Steam Injected Gas Turbine SIGT Cycle: this system involves moderate steam injection into the combustor of a standard large gas turbine and has been used to augment power under hot ambient conditions. Humid Air Turbine or HAT Cycle: this system involves evaporating moisture into the air flowing into a gas turbine and requires a special gas turbine in order to operate effectively. It has been highlighted as particularly appropriate for gasification combined cycles.

The retrofit of gas turbine steam injection for power augmentation may be particularly attractive in areas where there is existing industrial scale open cycle GT plant and a demand for greater generating capacity. A variety of HRSG designs could be used in this application, but it is a developing

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application for which OTSGs may be particularly suitable. The OTSG can be designed to run dry at full exhaust temperature, removing the need for a bypass stack and providing a more simple and robust system. 4.3.4 Gas Turbine Inlet Air Chilling

Air intake cooling technology is used to enhance combined cycle power output and is particularly relevant for utility plant situated in warm climates where the air is dry and hot. The cooling of the air at the inlet results in a noticeable increase in mass flow through the gas turbine. This in turn results in a higher gas turbine power output as well as a slight increase in the steam production in the downstream HRSG. The cooling of the inlet air is achieved by means of a refrigeration system similar to the type employed in large building air conditioning units. The heat exchanger used to cool the incoming gas turbine air is formed from a coil of finned tubes located in the inlet housing of the gas turbine. Cooled water is circulated through the tubes. The prior cooling of the water is achieved by chillers which are mass produced pieces of equipment and essentially fall into two categories: Centrifugal chillers Absorption chillers

In general, the absorption chiller delivers a lower gross plant power output than the centrifugal chiller due to the use of steam bleed from the HRSG to drive it. However in terms of plant net power outputs the two systems are approximately the same. This is because the centrifugal chiller requires an electric pump for circulation and therefore consumes a far greater amount of auxiliary power as opposed to the steam driven circulation for the absorption method. Further differences between these two systems are described in greater detail by Elmasri [62]. Chilling the inlet of a large combined cycle allows extra power to be obtained from a plant (~ 5% increase in the net kWe output). The cost of that additional power output is the additional expense of the capital and operational costs of the upstream chilling unit and other necessary modifications to the gas turbine itself. These have been estimated by Elmasri [62] at ~$250 per kWe of capacity gained above the initial hot design condition. The small-scale OTSG design may also find application in power augmentation for existing open cycle GT plant by GT air inlet chilling, as described above. A small OTSG unit can be added to an open cycle GT to provide steam for an absorption chiller. Again the advantage of the OTSG design is that protection in the event of a boiler trip is not required as the OTSG may be designed to run dry at full exhaust temperature. 4.3.5 Increases in Gas Turbine Exhaust Temperature

The pursuit of higher efficiency CCGT plant has driven the rapid increases in GT exhaust temperature and mass flow rate imposed on HRSGs. The exhaust (86)

conditions of some established and more recently developed gas turbines are shown in Table 5 below: Gas Turbine Turbine inlet temperature (C) 1427 1327 1260 1427 Turbine exhaust temperature (C) 600 606 641 621 Mass flow (kg/s) 535 636 549 685

Siemens/Westinghouse 501G (a 60Hz machine) GE 9351FA Alstom GT 26 GE 9001H

Table 5: Turbine inlet/exhaust gas temperatures and mass flow rates on some modern gas turbines [65]. The Alstom GT 26 (and GT 24) gas turbine uses sequential combustion in two annular combustion chambers to achieve improved efficiency. This is different to the conventional approach to gas turbine combustion, which is carried out in a single stage and requires increasingly high firing temperatures and complicated cooling technologies [66]. The exhaust temperature is the highest of any commercially available gas turbine. The GE 9001H is designed to give a combined cycle thermal efficiency of 60% and the first of its kind is being installed at Baglan Energy Park in South Wales. The efficiency improvement is due to the high firing temperature, which is made possible by the use of large single crystal airfoils, superior component and coating materials and a closed-loop steam cooling system (see Section 4.3.1) [67]. The implications of this type of cooling system for HRSG water/steam chemistry are not trivial and are discussed in Section 3.5.9. In general, the latest generation of gas turbines, with their increased gas turbine outlet conditions are not anticipated to be a major concern as far as the HRSG pressure parts are concerned, as materials issues at these temperatures have been successfully tackled on conventional coal-fired plant. For these increased temperatures, GT diffuser ducts, HRSG inlet ducts and casings are likely to be internally insulated in the higher temperature regions. Currently used internal insulation liner materials can cope with these relatively small increases in temperature (internal insulation has been proven on CHP plant with supplementary firing up to around 850C). The most likely area to be impacted is that of non-cooled support components, particularly on vertical gas-flow HRSGs e.g. HP superheater/reheater tube sheets and support links. This may require more extensive use of higher grade alloys such as modified 9% chrome (P91) or stainless steel for support components. There may even be a need to employ water/steam cooled support tubes for high temperature tube banks on vertical gas-flow HRSGs (akin to the rear pass of a conventional coal fired boiler). This method of support has largely been limited to supplementary fired vertical gas flow HRSGs in the past. (87)

4.3.6

Supercritical Technology

Currently state-of-the-art supercritical pulverised fuel fired steam power generation plants exist and operate at up to nominally 300 bar and 600C steam output with net efficiencies of ~45% LHV [68]. Due to advances in materials technologies steam temperatures and cycle efficiencies have gradually improved and are set to continue to do so. Targets of final steam conditions of 650-700C have been set for 2020 and associated cycle efficiencies of around 50-55% are expected. The recognised advantages of adopting a supercritical steam cycle in addition to the obvious improvements to cycle efficiency are [68]: CO2 emissions are reduced by about 15% per unit of electricity generated when compared with typical existing sub-critical plant. Exceptionally good part load efficiencies are achievable, typical half the decrease in efficiency exhibited by sub-critical plant. Plant costs are considered comparable with sub-critical technology.

Much of the technology surrounding supercritical technologies is not new and a great deal of development work was done in the 1950s and 1960s. At this time countries such as the UK kept a predominantly sub-critical power base due to the unreliability, expense and poor operational flexibility of these early designs. However, elsewhere in Europe and in Japan, development and refinement continued to the extent that supercritical steam is now considered one of the leading clean coal technologies. Currently 10% of orders for new coal fired power generation plant are for supercritical steam cycles and whilst future orders are difficult to predict, estimates suggest a steady rise in the adoption of this technology [68]. Supercritical steam cycles are not limited to coal fired plants exclusively. In theory, supercritical steam cycles can be used for any technology incorporating a steam cycle to generate electricity. Therefore the benefits are considered applicable to HRSGs within combined cycle gas turbine systems. With advances in gas turbine technology, combined cycle units are now larger and HRSGs are operating at higher temperatures. Previously both these factors were lacking and thus directly affected the commercial and technical viability of the supercritical HRSG. 4.4 4.4.1 New Applications for HRSGs The Role of HRSGs in IGCC Plant

4.4.1.1 IGCC Plant Description Whilst gas turbine technology has been applied previously in natural gas and oil fired combined cycle plants, the development of the Integrated Gasification Combined Cycle (IGCC) allows both solid and liquid fuels to be the main (88)

source of fuel for the plant. After several years of technology development and demonstration operation, this power plant technology is approaching the status of commercial operation. The concept of an IGCC power plant incorporates an oxygen or air-blown gasifier operating at high pressure and producing a raw gas, which is cleaned of most pollutants and burned in the combustion chamber of a gas turbine generator set for power generation. The sensible heat of the raw gas production process along with the hot exhaust gas from its combustion in the gas turbine are used to produce steam. The steam, in turn, is then utilised to generate additional electrical power through a series of steam turbines. The main subsystems of an IGCC power plant are therefore: Gasification plant including feedstock preparation system Raw gas heat recovery system Gas purification system with sulphur recovery Air separation unit (ASU); required only for oxygen-blown gasification Gas turbine with electrical generator Heat recovery steam generator (HRSG) Steam turbine system with electrical generator

The actual coal gasification process for IGCC power generation is classified into three categories namely, stationary bed (Lurgi and British Gas Lurgi systems), fluidised bed (High Temperature Winkler, U-gas and Kellog-RustWestinghouse systems) and entrained-flow bed. The entrained flow bed gasification process uses an oxygen blown gasifier and is the most proven technology for single unit with large capacity applications. The entrained flow bed gasifier has essentially five distinctive types according to manufacturer (Texaco, Destec, Prenflo, Shell and GazCobinat Schwarze Pumpe). Of the five, two distinct categories are apparent: Wet feed processes such as Texaco and Destec utilise a coal slurry feed. Dry feed process such as Prenflo, Shell and GazCobinat Schwarze Pumpe (GSP) utilise a dry powder feed.

Generally the temperatures within the gasifiers are lower in the case of the wet feed process than the dry feed process. Water-cooled walls, rather than firebrick are therefore necessary. Manufacturers claim that a dry powder feed gasifier has a slight advantage in terms of cycle efficiency over the coal slurry gasifier. Dry processes systems are however, considered to be more complicated than their counterpart. These complications are generally associated with reliability penalties. On the whole the unit investment for the dry feed gasifier is considered greater than the wet feed unit. A schematic showing a typical IGCC utility plant layout is shown in Figure 33. This figure illustrates the plant arrangement based on a Shell dry feed entrained-flow gasification process. The cycle is described in detail below:-

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Initially, the coal is pulverised in a roll mill and then conveyed to a dryer. Within the dryer the coal is flash dried in a stream of hot nitrogen which has been supplied from an ASU and heated by low-pressure steam. The dried coal is separated in cyclones and the nitrogen cooled and the water removed. This process reduces the moisture content of the coal considerably. The coal is then pressurised with additional nitrogen from the ASU and fed into the dry-feed, entrained flow, slagging gasifier through lock hoppers. In addition to the nitrogen, the ASU also provides a steady supply of oxygen into the gasification chamber. The gasification pressure vessel is protected from the hot gasification products by a tube wall construction in which intermediate pressure (IP) steam is raised. The gasifier operates at a pressure of 25bara and a temperature of 1400C and produces a raw fuel gas, mainly composed of carbon monoxide (CO) and hydrogen (H2). Most of the coal ash forms a molten slag, which falls into a water bath at the bottom of the gasification chamber. Sensible heat is recovered from the raw gas in a waste heat boiler situated at the top of the gasifier. This boiler evaporates water bled from the high pressure (HP) circuit. In addition, further heat is also recovered from a syngas cooler after exiting the gasifier. To ensure that the fly ash is solid prior to entering the syngas cooler, cooled raw gas is recycled from the outlet of the syngas cooler. The syngas cooler heat exchanger consists of economiser and evaporator surfaces and generates IP steam supplied directly from the IP pump. The remaining heat in the raw fuel gas is exchanged in a gas-to-gas heat exchanger. This exchanger utilises the raw fuel gas to re-heat the cleaned fuel gas after an acid gas removal process. The gas cleaning process itself is done in stages. Initially, the fly ash is removed by cyclones and by water scrubbers, which also absorb any hydrogen chloride (HCl) present. Heat is extracted for boiler feedwater heating and the cooled raw gas then passed to the purification stage where sulphur-bearing compounds, mainly hydrogen sulphide (H2S) and cabonyl sulphide (COS), are removed in order to protect the gas turbine and also to meet environmental legislation. These compounds are absorbed by counter-current washing with Purisol solvent and are recovered from this solvent in a series of flash columns. The solvent is recycled and the sulphurbearing compounds are sent to the sulphur recovery plant. This plant is based on a Claus design. Unreacted gases are treated in a SCOT tails gas recovery unit. Heat generated in the Claus plant is used for boiler feed water heating. The clean fuel gas is saturated with hot water in a humidifier, which helps to reduce the NOx formation in the gas turbine combustor. Prior to entry to the combustor, the fuel gas is further heated by an exchanger using a bleed from the high-pressure, high-temperature (HP/HT) economiser. At the combustor, the clean fuel gas is mixed with air supplied directly from the GE 9FA turbine compressor alongside compressed nitrogen, the original nitrogen source being air from the gas turbine compressor which has been separated in the ASU. From the gas turbine, the hot flue gas passes to the HRSG where steam is raised at two pressure levels (NB the IP stream is only superheated within the

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HRSG, the steam itself is originally raised within the gasifier). The cooled gases are then exhausted via the stack to atmosphere. The condensate from the low pressure LP steam turbine is passed through a condensate preheater prior to entry to the deaerator. Here the incoming water is heated by direct contact with steam. From the deaerator, there are three supply lines to the HRSG, namely the HP, IP and LP lines. The LP pump supplies feedwater directly to an LP evaporator within the HRSG. Following evaporation, some saturated steam is extracted after the LP evaporator and used in the dryer to remove moisture from the incoming pulverised fuel (PF). The remaining saturated steam from the evaporator feeds into the LP superheater. After being superheated, the LP steam is split into two lines. One line supplies the superheated LP steam to the LP turbine another recirculates the LP superheated steam back to the deareator. The IP pump supplies feed water to the syngas cooler and gasifier membrane wall where the heat from the gasification process is utilised to generate IP steam as previously described. Some steam is also bled off and fed to the gasifier itself as part of the gasification process. The IP steam from the gasifier is then fed into the HRSG for superheating. Following superheating, the IP steam is added to the exit line from the HP turbine. These lines combine and are reheated in the HRSG before entering the IP turbine. The HP pump supplies feedwater to the high-pressure, low-temperature (HP/LT) economiser and then on to the HP/HT economiser. Upon leaving the HP/HT economiser, feedwater is extracted to supply the waste heat boiler within the gasifier (see above) as well as supplying a source of heat for the clean fuel gas line. Saturated steam is therefore produced from both the HP evaporator within the HRSG and the waste heat boiler within the gasifier. The two steam lines then recombine to be superheated within the HRSG. The superheated HP steam is then fed to the HP turbine for power generation. The IP turbine steam supply consists of the HP turbine exit flow combined with the HRSG IP line. The LP turbine steam supply consists of the IP turbine exit flow combined with the HRSG LP line.

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Figure 33: Diagram of a typical IGCC plant with dry feed gasifier (Courtesy of Mitsui Babcock Energy Ltd)

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4.4.1.2 IGCC Plant Performance As can be seen from Figure 33 and the description above, in order to enhance the plant efficiency, the steam cycle of the HRSG in an IGCC plant is very much integrated with other plant components such as the gasifier. For such plant, in general, overall cycle efficiencies of around 43% can be achieved. The efficiency of an IGCC plant is however still essentially lower than that of a typical gas fired combined cycle plant. In addition to the loss of chemical energy from the removal of sulphur and other combustible contaminants, the hot gas leaving the gasifier must be cooled in order to allow effective chemical and ash removal. Therefore the combination from both gasification and the gas cooling are responsible for the lower overall cycle efficiency [69]. Since the 1950s there have been 24 IGCC plants constructed or planned for construction throughout the world. These are based on several different variations of the gasification process. Of these 24, some 3 are dismantled, 17 are in operation and the remaining are either at the planning, engineering or construction stage. In recent years the numbers of large Utility IGCC plants have been growing and in both the USA and Europe IGCC plant have reached the commercialisation stage. In Europe three large scale IGCC (>250MWe) plants based on combining state-of-the-art gasifier technology and a high degree of HRSG process steam integration have been constructed and successfully operated during the last few years. Two of these, Buggenum (Netherlands) and Puertollano (Spain) employ coal as the main fuel source whilst Priola Gargallo (Italy) utilises refinery residues. In both coal based plants dry feed entrainedflow gasifiers were selected and in the case of the refinery residues-based plant the wet feed entrained-flow gasifier process was chosen. In the USA there are currently two IGCC units generating electricity commercially - the United States Tampa Electric unit at Polk Power (250 MWe) station and the Cinergy owned (260 MWe) plant at Wabash River. Characteristics of these key plants [69] are outlined in Table 6 alongside those of other IGCC plant world-wide.

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Plant Steag Steag Coolwater Plaquemine Demkolec Tampa,Polk Eldorado Wabash SchwarzePumpe Pernis Pinon Pines Puertallano I.S.A.B Saras Star A.P.I. Fife Power I.B.I.L G.S.K Fife Power Zuv S.P.C.C. K.P.E Global Energy

Country F.R. Germany F.R. Germany USA, Cal. USA, La Netherlands USA, Florida USA, Kansas USA, Indiana F.R. Germany Netherlands USA, Nevada Spain Italy Italy USA, Del. Italy UK, Scotland India Japan UK, Scotland Czec Rep. China, Yantai USA, Kentucky USA, Ohio

Start 1952 1959 1984 1986 1993 1996 1996 1996 1996 1997 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2003/4 2003/4 2003/4

Fuel Coal Coal Coal Coal Coal Coal Coke Coal Coal/Oil Heavy Oil Coal Coal Asphalt Tar Coke Tar Coal Lignite Tar Coal/Rdf Coal -

Process Lurgi Lurgi Texaco Destec Shell Texaco Texaco Destec Shell Shell KRW Prenflo Texaco Texaco Texaco Texaco BGL Tampella Texaco BGL HTW -

MWe 50 150 100 220 250 250 40 262 40 127 80 300 540 550 240 250 120 60 540 400 400 2x400 580

Status Dismantled Dismantled Dismantled Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Planning Planning Planning Planning

Table 6: IGCC plants world-wide. Two main disadvantages which are usually associated with IGCC are the reliability / availability of these combined cycles and the initial significant capital outlay [70]. Whilst the reliability/availability factor is believed to be improving as is illustrated from the efficient running of the Pernis plant in the Netherlands [71], the cost of an IGCC plant still remains relatively higher than a PF plant with a flue gas desulphurisation system installed. However, the main benefit of an IGCC plant is its ability to allow coal to be fired in a clean and efficient manner. The removal of contaminants during the gas clean up results in a process which is potentially the cleanest type of coalfired power plant in operation. Whilst coal remains the largest unused source of fossil fuel in the world, it makes environmental sense to develop technologies that allow it to compete with its naturally cleaner counterparts and therefore reduce the rate of consumption of premium liquid and gaseous fuels. 4.4.2 Biomass Integrated Gasification Combined Cycle

Biomass IGCC applications tend to be sized at the industrial rather than the utility scale due to the logistics of fuel supply. They are unlikely to reach utility scale, even once the technology is mature, due to the low energy density (95)

of biomass fuels and the land area and fuel supply infrastructure required to support even a relatively small plant. There are a variety of approaches to biomass gasification including fixed bed, rotary kiln, pressurised circulating fluidised bed (CFB), atmospheric CFB and the Batelle process [72]. The air blown CFB, fixed bed and rotary kiln approaches produce a low calorific value (typically 5-6MJNm-3) syngas while the Batelle process by excluding air and using steam as the gasifying medium produces a medium calorific value gas (~15 MJNm-3). The syngas from all of these processes can be burnt in a GT or a reciprocating engine with exhaust heat recovery. If syngas is to be burnt in an engine, it must be cleaned first to remove particulates and in some cases tars as well. Current gas clean up technology requires that the gas be cooled from the gasification temperature (typically 850 - 950C) before filtration. There are therefore two HRSGs in the system, one to recover heat from the hot process gas prior to filtering and the second to recover heat from the engine exhaust. The syngas cooler HRSG will be exposed to carry over of bed material and ash. Biomass fuels may be rich in alkali metals which increase the potential for tube fouling. This needs to be taken into account in the design. Very few BIG-CC projects have yet been successfully developed. If BIG-CC technology can be made to operate reliably and economically it will open up a new market for industrial scale HRSGs. 4.4.3 Microturbines

In general, microturbines are unlikely to be coupled with HRSGs. The relatively low exhaust temperature (if recuperated as most are) and flow are not normally sufficient for economic steam generation at useful steam conditions. However, microturbine suppliers are working on scaling up their units. Bowman Power Systems expect to release a 200kWe unit soon and believe that microturbines up to 500kWe are feasible. At the larger sizes they are more likely to be coupled to HRSGs to provide steam flows for smaller consumers in some specialist applications. It is possible that they could be used for air pre-heating or provide heat for an LP circuit as part of a larger boiler system. 4.5 Conclusions Future increases in HRSG operating conditions will largely be dictated by increases in GT exhaust temperature. One area of significant interest is once through design. The main benefit of this technology at present is its suitability for flexible operation. In the long-term future, it should pave the way for supercritical cycles with even higher thermal efficiencies. Another area of significant interest is the use of HRSG steam for GT blade cooling in the latest class of GTs. This presents significant challenges for HRSG design in attaining the high steam qualities required.

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The use of HRSGs within IGCC plant is now approaching the status of commercial operation, although the costs still remain relatively high. Other development areas include modular design to reduce build costs, improving reliability, and improving access. The latter two items address specific problems experienced by plant operators. Improvements in these areas are perceived to provide product differentiation in an extremely competitive market place. Industrial scale HRSG technology is relatively mature. Most development comes from the integration of HRSGs within new processes, and the trickling down of technology from utility scale HRSGs. One exception is the use of once through technology which is already standard practice for one HRSG supplier.

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5
5.1

WORLD-WIDE ACTIVITIES
Introduction

This chapter reviews the current trends in the Global HRSG market. The main sources of HRSG supply and the countries responsible for purchasing HRSGs are highlighted, alongside capabilities of the key players in the Global HRSG market. Two approaches were taken to finding information for this section of the report. An internet search was carried out to try to identify as many companies as possible that are active in the field. Appendix A shows a list of the companies identified and a summary of their capabilities. A brief questionnaire was sent to each of these, but the response to this survey was disappointing, with only thirteen complete responses received. The second approach was to examine published data. McCoy Power Reports [73] provides a suitable source, but is focussed on the utility sector of the market. 5.2 Survey Responses

The capabilities of the companies that responded are summarised in Table 7 below.

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Innovative Steam Technologies

Wellmann Robey

M E Engineering

Mitsui Babcock

Nooter/Eriksen

Company Aprovis Alstom Erie

Turnover Range (M $) Application

>100 Utility Combined Cycle BIG-CC Petrochemicals Other chemical / process Iron, steel & coke Furnaces / Kilns Waste incineration Industrial GT exhaust Diesel engine Gas engine 1-5 5-10 10-20 20-50 50-100 >100 Consult Design Manufacture Commission Operate Smoke tube Water tube OTSG X X X X X X

1-5

10-50 X X

50-100 X

0.5-1

10-50 X

>100 X X X X X X X

>100 X X X X X X X

50-100 X

1-5 X

>100

1-5

50-100 X

TEI Greens 1-10 X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X

X X

X X X X X X X X X X X

X X X X

X X X X X X X X X X X X X X X X

X X X X X X X X X

Scale

X X X X X X X X X X X X X X X X

Capabilities

X X X X X X

X X X X X X X X

X X X X X X

X X X X X X X

X X X X X X X X X X X X

X X X X X X X

X X X

X X X

X X X X X

Technologies

X X X X X X

X X

X X

Table 7: Summary of capabilities of companies responding to survey

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Vogt-NEM

Thermax

NEM

TBW

SFL

5.3 5.3.1

Utility Scale Market Published Information Source of Market Information

McCoys data was gathered through a written survey of US and non-US suppliers of electric power generating equipment and engineering services. As data from each power plant are cross-checked from various sources, it is believed that McCoy provides the most complete and accurate information from an independent organisation. The calculations are based on the steam turbine MWe output in combined cycle applications and half the gas turbine output in cogeneration, (non combined cycle) projects. The final figure generated for total installed electrical capacity is therefore somewhat conservative by this method, however, the data provides an excellent indication of trends within the market (Section 5.3.2) and major market players (Section 5.3.3). 5.3.2 The HRSG Buyers

In terms of geographical distribution, it is apparent that over the past ten years (1992-2001), the biggest buyers by far of HRSGs have been in the US. A massive 48% of all world-wide purchases have been made by operators in the US. Next to the US the United Kingdom and Japan are the joint closest in terms of purchases over this period, however, at just 4% of the total ten year sales the sheer size and domination of the US market is obviously apparent. In terms of customer type three categories emerge. These are classed as: Non-Utility Generators (NUGs) Electricity Utility Power Generators (EUPGs) Industrial Power Generators (IPGs).

The NUGs account for some 81% of orders over the past ten years in the US market and some 49% of orders for the rest of the world. Over the same ten year period, EUPGs account for some 17% of the orders in the US alone and some 44% of the non-US market. 5.3.3 The HRSG Manufacturers

With respect to the outlined ten year period, the key manufacturers on an individual company basis were identified as Alstom Power (14.2%), Nooter/Eriksen (12.6%), Deltak (9.5%), NEM (7.7%) and Aalborg Industries (7.5%). Companies outside this top five, in the 1-7% share of the market included Foster Wheeler Energy (6.4%), Mitsubushi Heavy Industries (4.3%), Doosan Heavy industries (4.0%) and Mitsui Babcock Energy Limited (1%). Below the 1% threshold, some 50 companies, partnerships or joint ventures compete for the remaining market share. It is worth noting that many companies are involved in various types of commercial agreements with related companies throughout the world, therefore if all related companies, joint projects and licensee relationships are (100)

considered the top ranking is altered with NEM taking first place followed by Nooter/Eriksen and then Alstom Power. 5.4 Conclusions Over the past ten years (1992-2001), the biggest buyers by far of utility scale HRSGs have been in the USA, with 48% of all world-wide purchases. Next are the United Kingdom and Japan with 4% of the total sales. Key manufacturers in the above period were Alstom Power (14.2%), Nooter/Eriksen (12.6%), Deltak (9.5%), NEM (7.7%) and Aalborg Industries (7.5%). Companies outside this top five in the 1-7% share of the market included Foster Wheeler Energy (6.4%), Mitsubishi Heavy Industries (4.3%), Doosan Heavy industries (4.0%) and Mitsui Babcock Energy Limited (1%). For industrial scale HRSGs, there were around 33% of sales in each of the USA and Europe, with the other leading market being Asia and Australasia (excluding China) with 19%.

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6
6.1

MARKET POTENTIAL
Introduction

This chapter discusses the potential of various world-wide markets. The views expressed are derived from internal consultations amongst the project partners and consultation with other organisations [74]. The external consultation included the completion of a questionnaire by a number of companies, which included information about their geographical market breakdown by value. The chapter focuses on the US and China as two main areas with significant potential for development within the global market for utility HRSGs, and on the home market in the UK. Non- technical barriers to future success within these markets are identified and discussed. 6.2 Market Survey

The results of the questionnaire survey have been used to give an idea of which markets are most active. The small response to the survey means that confidence in the results is low. The geographical market share averaged over the thirteen questionnaire responses received are shown in Figure 34 below:-

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Figure 34: Average percentage of business by geographical market. Looking at the industrial scale sector alone, a breakdown of 68 enquiries received by M E Engineering over the last 18 months is shown in Figure 35 below:-

Figure 35: Percentage of enquiries coming from geographical market (Courtesy of ME Engineering Ltd).

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10 respondents provided a breakdown of the proportion of the HRSGs they supply (by value) in each of 6 size categories. The averaged information is shown below:-

Figure 36: Average percentage of business by HRSG size. This simply shows that there is activity at all scales. It is based on a simple average of the percentage of units (by value) that each company supplies. Since the companies that supply the larger units also have far larger turnover, in value terms the market is dominated by the large units. 6.3 Market Perception amongst Consultees

Consultees in the US suggest that the market for utility scale HRSGs is very poor currently. Prior to the last year or so, the market in the US was buoyant. HRSG companies had expanded to meet a demand for new utility scale power plant. However the market is now largely saturated and there is generation over-capacity. Transmission and distribution networks are close to full capacity and finance for merchant plant cannot be obtained in the current economic climate. Siemens [10] expect the US HRSG market to slump considerably over the next few years. Consolidation amongst HRSG companies in the US is expected. At the industrial scale there is more activity. There are opportunities for the development of CHP schemes on industrial sites, largely driven by security of price and supply issues in the volatile deregulated electricity market. Concern over climate change is not yet perceived as a significant influence on policy or the market in the US. However, the Clean Air Act is having an influence at the industrial scale. Consents are specifying lower NOx emission levels and rather than retrofitting low NO x boilers and selective catalytic reduction (SCR) some companies are opting to switch to a completely new CHP scheme. One consultee identified Russia as a good current market due to the need to replace ageing and inefficient plant. The same is true of Central and Eastern (104)

European (CEE) countries. The market in CEE countries is likely to be enhanced as the EU enlarges as trade with them will become easier and they will be striving to meet EU environmental standards. Turkey was identified as a good market due to low gas prices and a large demand for electricity. The Middle East was identified as a market with good potential due to the abundance of open cycle gas turbine plant that could be retrofitted with HRSGs for improved efficiency by operating in combined cycle mode or for power augmentation by turbine inlet chilling. One consultee identified Italy and Spain as good markets for oil replacement plant and the Middle East for desalination plant. The market in China is expanding rapidly, but is viewed as a difficult place to do business. This is due to the bureaucracy of complying with the local codes and standards and the fierce competition from local manufacturers. The market in Indonesia is also apparently growing, but competition from Chinese manufacturers is stiff here too. A number of other markets were identified by consultees as still being active, despite the general depression of the CHP market throughout Europe associated with falling electricity prices and rising gas prices. Within Europe the markets in France, Spain, Italy, Germany and Scandinavia are perceived as being most active for the development of CHP projects. German and Scandinavian markets are seen as being more highly regulated still (less competitive pressure on wholesale electricity prices) and there is price support for CHP schemes in Germany for a limited period. Some new CHP schemes in Germany benefit from a guaranteed feed in price. France, Spain and Italy also have support mechanisms in place for CHP. 6.4 UK Market

The UK electricity generator market has essentially two sub-sectors, utility CCGT / CHP and industrial CHP as outlined in Table 8. DISTRIBUTION BY MWe +1 MWe Utility CCGT/CHP Industrial CHP +10 MWe +40 MWe 60 20 +500 MWe 20

200

80

Table 8: UK power generation market sectors. Utility CCGT/CHP are required to compete with conventional plant under the New Electricity Trading Arrangements (NETA). Industrial CHP plants are struggling under NETA trading conditions and most are currently operating their steam and power supply contracts at a loss. There is therefore a degree of turmoil within the market with attrition expected amongst some of the players. However despite competition problems both sectors cannot ignore the need to consider widespread integrity and performance improvements to meet NETA market and client contractual demands. (105)

6.4.1

Non-Technical Barriers in the UK Utility HRSG Market

In terms of sustaining a profitable business based on the internal UK utility HRSG market certain barriers currently exist: 6.4.1.1 Current Surplus of Generating Capacity in the UK The electricity market in the UK is currently oversupplied, with the Seven Year Statement published by the National Grid Company in 2002 [75] stating that the capacity available for the 2002/3 winter is 67564MW. This capacity is made up as shown in Figure 37 below, with CCGTs contributing approximately 32.5% to the overall generation mix. Electricity demand in extreme winter weather conditions is expected to reach 55306MW, giving a surplus plant margin of 22.2%. However, in normal weather conditions, the peak demand is projected to be 52500MW (this was the peak demand during the winter of 2001/2), resulting in an even higher plant margin. This is attributed to the fact that governmental responsibilities for sufficient and reliable power generation in the past have led to capacity above actual need.

Figure 37: UK generation capacity available for the 2002/3 winter. Although a reasonable margin on plant capacity is obviously a necessity, the UK remains oversupplied and, as a consequence, energy prices are very low and are likely to remain so for the foreseeable future. This means that although CCGTs are relatively cheap to build and operate (see Sections 3.8.1 and 3.8.2), they remain economically unviable under current market conditions. This, coupled with the high price of natural gas (see below) not only makes the building of new, utility-scale HRSGs unlikely, but has also resulted in the recent mothballing of some UK CCGT plant.

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6.4.1.2 Fluctuations in the Price of Natural Gas Recently investors have been dissuaded from investing in CCGT plant by the volatility in the price of natural gas. Price volatility results in difficulties in reliably forecasting the overall costs occurred over the entire operating life of the combined cycle plant. 6.4.1.3 Current Unpredictability of the UK Retrofit Market With little in the way of large new-build utility plants in the UK, the market for upgrading existing facilities within the country must be the primary focus. The effects of flexible operation are becoming more and more apparent to operators, so the potential for upgrade opportunities is large. However with flexibility upgrades on drainage, pressure parts and casings expected to be between 100k and 400k per HRSG, the depth of the market remains uncertain. Factors within the operators market as a direct result of deregulation suggest that the availability of finances to fund these upgrades is questionable. 6.4.2 UK Industrial CHP Market

The annual Directory of UK Energy Statistics (DUKES) for 2001 gives various data for CHP schemes in the UK. The data is gathered through the Governments CHP quality assurance scheme. The majority of schemes are fuelled with natural gas (61%), with fuel oil accounting for 7%, 2% from renewables and the balance from various process exhausts or by-product fuels. The majority of the 1573 schemes are small, but generating capacity is dominated by the minority of larger schemes. Electrical capacity size range < 100 kWe 100 kWe 999 kWe 1 MWe 9.9 MWe > 10 MWe % of total number of schemes 43.2 40.1 12.1 4.6 % of total generating capacity 0.9 3.2 16.2 79.7

Table 9: CHP Schemes by size, 2001. Figure 38 below shows the installed CHP capacity in the UK for the last 5 years.

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Figure 38: Installed CHP capacity in the UK 1997-2001. The chart shows that through the 1990s the pace of addition of CHP capacity was accelerating with the rate peaking in 2000 with 844MW of plant being commissioned, a 22% increase on the previous year. However in 2001 only 38 MW of capacity was added. As part of this study the Combined Heat and Power Association and a number of companies involved in the supply and installation of CHP schemes were consulted. All of these reinforced the view of the market given by the DUKES statistics. The market for CHP schemes was buoyant towards the end of the 1990s but then collapsed. The reasons for the current depressed state of the market are discussed below. The trend is mirrored in the figures for electrical export from CHP schemes. In 2000 8482 GWh were exported. In 2001 the figure had dropped to 5960 GWh. Similar problems with the CHP market apply elsewhere in the EU, such as in the Netherlands and Germany [76]. 6.4.2.1 Stricter Consents Policy In 1998 the Government introduced a stricter consents policy on gas fuelled electricity generation plant. Under this policy, consent for the development of any gas fired power plant of generating capacity greater than 10MW was required from the Government. The measure was introduced because of concern that the electricity market was being distorted and coal fired plant was being unfairly penalised by this. The policy was kept in force while a review of electricity arrangements was carried out. It ended in 2000 with the introduction of the New Electricity Trading Arrangements (NETA). The only plants granted consents during this period were CHP plants. The stricter

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consents policy had the effect of concentrating attention on the development of CHP projects. 6.4.2.2 Natural Gas Prices Most CHP plant is fuelled with natural gas. The interconnection of the UK gas grid with that of continental Europe via the Bacton-Zeebrugge pipeline was accomplished in October 1998. This has exposed the UK to the higher prices of the continental European market and UK natural gas prices have consequently risen from a low of under 14p/therm in 1999 to 19p/therm in 2001 [77]. 6.4.2.3 New Electricity Trading Arrangements The New Electricity Trading Arrangements (NETA) were brought into force in March 2001. NETA introduced new regulations governing the deregulated electricity market in the UK. Previously the pool price at any one time was paid to all generators supplying power at that time and the price was set by the most expensive generator. Under NETA, most wholesale electricity sales between generators and retailers are now concluded well in advance with the timing, volume and price of supply fixed. A balancing mechanism provides a means of meeting short term demand fluctuations. Fierce competition since the liberalisation of the market has driven down the prices at which contracts have been concluded. Since 1998, when NETA was first proposed, electricity wholesale prices have fallen by 40%. Between April 2001 and February 2002 baseload prices have fallen by 20% and peak prices by 27% [78]. What is more, CHP schemes are unlikely to get the best prices. CHP schemes are generally small compared to utility scale plant so have little market influence. Penalty payments are levied if a generator fails to meet its scheduled supply profile. Many grid connected CHP schemes tend to run to meet the heat or steam demands of its customer, rather than an electricity supply profile, and the electrical output is therefore not entirely predictable. The CHP scheme is exposed to a potential mismatch between the heat and electrical demand profiles that it is trying to meet. This results either in NETA penalties or running at lower efficiency than the design point. 6.4.3 Other Barriers for UK Firms

The grid has evolved to distribute electricity from a small number of large generators. A substantial amount of power is wasted in the form of transmission losses. In 1999 it is estimated that transmission and distribution losses accounted for 1336 TWh, equivalent to 11.6% of the Worlds final electricity demand [79]. CHP plants are generally connected to local grid networks and the separation between generator and consumer is smaller, resulting in lower transmission and distribution losses. Decentralised or embedded generation can also have benefits in strengthening the local grid and improving power quality. These benefits of embedded generation are currently not fully reflected in the sale price of electricity from CHP schemes. However the connection of a large number of smaller generators may also cause difficulties for the grid system relating to fault levels, islanding and power (109)

quality. Where substantial modifications are required to the grid to allow connection, the cost to the scheme developer may be prohibitive, especially for smaller schemes. The cost and complexity of grid connection is currently a barrier to the development of smaller CHP schemes. Anecdotal evidence suggests that banks are not willing to invest in energy projects at present due to the risk associated with price volatility and uncertainties within energy markets. The market is in such a poor state that the major CHP developers have disbanded their development teams. The only projects that may go ahead currently are either ones where all of the power will be consumed on site or that have another factor driving them, such as avoided grid connection strengthening costs. One UK consultee identified the diversity of European standards as being a problem for companies trying to export to other EU countries. A common European standard for shell boiler design is being introduced (EN12953), but the consultee was concerned that oversees clients will continue to specify their own national standards. The current strength of sterling was also identified as a problem for UK HRSG suppliers. There is strong competition in the market place and other European suppliers can undercut UK companies, even in the UK despite their higher transport costs. 6.4.4 Future Industrial CHP Market Potential in the UK and Mainland Europe

The European Commission sponsored Future Cogen study assessed the potential for the expansion of CHP within EU member states and Central and Eastern European (CEE) states. It modelled the growth of CHP under four scenarios ranging from the pessimistic deregulated liberalisation scenario to the optimistic post Kyoto scenario. In the deregulated liberalisation scenario EU CHP capacity grew by only 16 GW from a base level of 65GW to 81GW in 2020. In contrast, under the Post Kyoto scenario installed capacity grew by 130GW to 195GW by 2020. Under the Post Kyoto scenario, CHP in the UK would grow from a base level of 3453GW to 27215GW in 2020. Not all of this growth would come from CHP schemes involving steam generation but it would represent a substantial opportunity for growth in the HRSG industry[80]. At present CHP opportunities in the UK are limited to those that have specific driving factors other than just more efficient use of fuel. The UK government has set a target of achieving an installed CHP capacity of 10GW by 2010, compared to the current capacity of 4801MW (2001). Some policy measures have been introduced to stimulate the CHP market. Fuels used in CHP are exempted from the Climate Change Levy (CCL). In the April 2002 budget it was announced that electricity exported from CHP schemes will also be exempted from the CCL (subject to approval under EU state aid rules). Enhanced capital allowances (ECAs) are allowed on some items of CHP

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equipment, increasing the opportunities for investment in CHP. However ECAs are not yet available on all items in a complete installation. The EU target is to double CHP capacity as a fraction of total electricity generation capacity from 9% (1994) to 18% in 2010. In order to achieve this target the EU have proposed a CHP directive[81]. The key points of the directive are: The introduction of a common definition of cogeneration; Targeting of support at schemes with an electrical capacity of up to 50MW (or at the first 50MW of larger schemes); Providing a guarantee of the origin of electricity from cogeneration; The establishment of efficiency criteria for cogeneration; An obligation on member states to establish their national potential for cogeneration; Allowing national support schemes for cogeneration in the short to medium term (under state aid rules); The establishment of objective, transparent and non-discriminatory rules for grid connection and reinforcement; A requirement for member states to review legislative frameworks with a view to reducing barriers to cogeneration.

These actions should enhance the European HRSG market. The Kyoto agreement sets binding targets for greenhouse gas emission cuts for signatory countries. CHP has been identified as one of the most cost-effective methods of cutting CO2 emissions. Joint Implementation and Emissions Trading mechanisms can potentially be harnessed to help develop CHP schemes. In Annex II countries, the Clean Development Mechanism may offer opportunities to help develop CHP schemes. 6.4.5 Action to Stimulate the UK Market / Support the UK Industry

A common view was expressed by all UK consultees: there is no problem with the product but huge problems with the market. No need for DTI funded research was identified the technology is essentially mature. However the Government does need to act to stimulate the UK market. The combination of NETA and a high natural gas price has dramatically reduced the market for CHP and the climate change levy is not seen as being an adequate incentive to invest in new HRSGs / CHP schemes. Enhanced support for CHP is required from government and a CHP obligation seems to be the preferred mechanism in the industry. The current pessimistic industry view is supported by a report by Forum for the Future / Cambridge Econometrics commissioned by the Combined Heat and Power Association and released in October 2002. This predicted that total installed capacity would only reach 6.6 GWe by 2010 and 8.6 GWe by 2020 under current conditions, compared to the government target of 10 GWe by 2010.

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The Combined Heat and Power Association has therefore identified the following steps as means of improving the situation for the development of CHP projects: 6.5 Introduction of a CHP obligation, similar in form to the Renewables Obligation but with a lower buy-out price, to provide an underpinning market mechanism A proactive planning and communication strategy Adequate resourcing within government Full implementation of existing support mechanisms for CHP Action to address existing and emerging barriers to CHP Delivery of effective support to emerging technologies North American Market

The North American market at present is considered by some to be expanding significantly, in contrast to the opinions expressed by some consultees (see Section 6.3 above). In the year 2001 according to Power Magazine [61] an installation record of 48.6 GWe in total was established for new gas turbine based power plants. This figure surpasses the 1974 record of 43 GWe for new installations. However, the 2001 record is envisaged as being short lived as a result of the 66 GWe for 2002 and 69 GWe for 2003 announced or under construction [61]. Whilst mid-sized aero-derivative gas turbines are part of the sales surge, the vast majority of this increased capacity has been, and no doubt will continue to be in large, utility scale machines. When it is considered that just 27 GWe of new capacity came on line in the year 2000, the extent of the rapid growth within the North American market is clearly apparent. Whilst the size of the North American market is clearly large, there are obvious signs of the high level of competition existing in this potentially lucrative business sector. Evidence of this rivalry can be found from the undisputed fact that in recent years the market has attracted the attention of several new competitors, all contending for their share of the profits. Furthermore this additional competition has emerged from both international manufacturers winning American based contracts and American based companies with previously limited interests in the HRSG market suddenly expanding their involvement. From what was essentially a US supplier only market, there has been a recent spate of key contracts awarded to non-US manufactures such as Toshiba (Tokyo, Japan), CMI (Brussels, Belgium) and Hitachi (Tokyo, Japan). Foster Wheeler is a prime example of an American company expanding its activities in the HRSG market. Prior to 1997 its HRSG interests were considered not to be a prime business within the company. However, the company claims that having recognised the huge potential for rapid combined cycle power plant expansion, it strategically expanded into this area from its traditional business of solid-fuel boiler fabrication. The end result is that in just 5 years its HRSG business has now grown from a minor business sector to its largest one.

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6.5.1

Possible Non-Technical Barriers to Development of Combined Cycle Technology within the USA

Some analysts [82, 83] are sceptical about the future of the North American market and predict as much as 50% of the announced future projects in the states will not make it further than the drawing board. The main reasons cited are: Inadequate supplies of natural gas: Natural gas is the fuel of choice for at least 95% of the projects. The US Energy Information Administration estimates that natural gas production and delivery would have to rise 4050% over the next 15 to 20 years to supply the projected combined cycle developments. This is viewed as a somewhat heroic task based on the aged state of the nations gas fields and requirement for extensive new pipelines for gas delivery. Price of Gas: Market forces are also at play with the high price of gas dissuading investors in gas turbine technology and looking towards coal, nuclear and hydro power for their energy solutions. The use of gasification combined cycles is still however a possible lucrative market that should not be ignored. The US CHP Market

6.5.2

In the US, the Assistant Secretary for Energy Efficiency and Renewable Energy has issued a CHP challenge calling for industry and government to work together to double the capacity of CHP in the US by 2010. According to the US Combined Heat and Power Association (USCHPA), the current installed capacity is around 65GW, on the way from 46GW in 1998 to the goal of 92GW in 2010. However measures to support this target are limited. There are federal programmes supporting awareness raising, research and demonstration. A 10% investment tax credit for CHP was included in proposed legislation passed by both houses of Congress in the last two years, but it was not enacted into law due to disagreements over other provisions of the law. In order to avoid revenue loss, the same provision would have stretched out CHP asset depreciation for tax purposes, so it was considered something of a neutral measure by the CHP industry. There are federal requirements that CHP operators achieving certain levels of efficiency can compel utilities to purchase their power at the utilities' avoided costs. This was a strong incentive for CHP in earlier times when incremental power generation costs were quite high, but motivates fewer projects now, according to the USCHPA. Few states have introduced mechanisms to support CHP or equitable rules to govern the connection of CHP schemes to the grid. 6.6 Chinese Market

In terms of future world markets the Peoples Republic of China is significant. Currently the installed power generation capacity in China is the second largest in the world, with the United States being in first position. However the per capita electric power utilisation level in China is still low. China expects its economy to grow at an average rate of 7% or more per year over the next decade. Therefore if a constant ratio of primary energy to gross domestic (113)

product is assumed for this period the primary energy consumption would nearly double. Thus the electric generating capacity for the nation will be required to increase dramatically. China is a large coal production country with coal as its main source of power generation. This situation is envisaged as remaining unchanged in China for the foreseeable future. Of the ~300GWe of installed capacity at the end of 1999 fossil fuel capacity was almost 75%. Coal fired units account for more than 95% of the fossil fuel fired capacity. China is therefore actively pursuing Clean Coal Technologies (CCTs) as a means of meeting their future energy requirements with integrated gasification technology (IGCC) and supercritical boilers attractive options for the 21st Century. China has made a decision to build a large-scale IGCC demonstration power plant and is currently conducting preparatory research for such a project. Yantai power plant in Shandong province has been proposed as the host site for this demonstration for which two 400MWe IGCC units are being considered. Assuming that the Yantai IGCC project proceeds, it could be in commercial operation by the end of year 2005. Wider deployment of IGCC could, therefore, be forecast for the period beyond 2005-2010. The potential rise of IGCC within the market place over a 15-year period is predicted as resulting in a 17% share in the coal-powered generation market by the end of 2025. With the HRSG being an integral component of the IGCC plant (as outlined in Section 4.4.1) the knock on effect of HRSG sales in the Chinese market place may well be significant. However, it is apparent that the final market size will depend entirely on the success of the demonstration and the cost reductions achieved. In addition, the air blown gasification combined cycle (ABGC) has been proposed as another possible contributor to Chinas future energy generation. This cycle also is dependent on the use of the HRSG to enhance overall performance. Essentially the ABGC is a hybrid combined cycle power generation technology based on the partial gasification of coal [84]. The combustion of the fuel-gas is undertaken within a gas turbine. The combustion of the remaining gasifier char is carried out in a circulating fluidised bed combustor where steam is generated to drive a steam turbine. A key feature of the ABGC process is its potential to achieve high cycle efficiencies with low environmental emissions. ABGC development is estimated at being around five years behind IGCC. However, its main attractiveness stems from the fact that it is well suited to poor quality high sulphur coal which is in abundance in the developing countries of China and also India. Predictions indicate that on the basis that a working plant could be established within the period 2005-2010, then within 15 years some 10% of the market share of coal fired power generation could be supplied via ABGC.

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Detailed studies of CCTs within the Chinese market place have been undertaken by Mitsui Babcock [70, 84, 85] along with various Chinese research institutions. This previous work has been undertaken with the financial support of the DTI. 6.6.1 Possible Non-Technical Barriers to Development of Combined Cycle Technology within China

The specific market for HRSGs within China is clearly dependent on the Chinese Authorities adoption of a positive policy on cleaner coal technologies. In general the Chinese market is seen as being hindered by seven factors listed below. 6.6.2 Complex Administrative Procedures

China is in the process of government and administration reform and enormous changes have been made in recent years. In 1998, the State Power Corporation (SPC) replaced the Ministry of Electric Power and the government's administrative responsibility for the power industry was transferred to the State Economic and Trade Commission (SETC). Traditionally, the State Development and Planning Commission (SDPC) is the top authority responsible for approving new power plant projects. The State Economic and Trade Commission (SETC) is the top authority responsible for approving renovation projects. These two commissions are the most powerful government agencies in terms of applying for and receiving approval for cleaner coal technology projects. The first step in influencing the SDPC and SETC is to inform them of the technology, the history of development, the current situation, technical and economical features, advantages and disadvantages. Providing them with documents, inviting them to attend a workshop, or visit research facilities or demonstration sites therefore allows this interaction to take place. Secondly, if a project is being prepared, a feasibility study report with favourable financing arrangements such as a soft loan or a grant from international organisations will certainly have a positive influence on the approval process. 6.6.3 Low Institutional Capability

The lack of collaboration between design institutes, research institutes and manufacturers acts as a key barrier to international technology transfer. Most R&D for cleaner coal technologies requires a multidisciplinary approach. In addition, Chinas state-owned manufacturing enterprises have not developed commercial or innovative skills and there is a lack of market pressure on Chinese enterprises. With the deepening of economic reform and system restructuring, however, all state-owned enterprises and research institutes will accelerate the process of upgrading management and technology in order to improve competitiveness.

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6.6.4

Environmental Emission Controls

With China being a developing country, the standards relating to environmental protection are still much lower compared to those in fully industrialised countries. The regulations on emissions from thermal power plants, for example, are not so stringent. This situation does not put enough pressure on industry to create a demand for cleaner coal technology hardware and services. In addition, the implementation of these standards is sometimes, and in some places, poor and inconsistent. The lack of enforcement and monitoring therefore also has a negative influence on environmental investment. Environmental protection, however, is one of Chinas basic national policies for sustainable development. With the rapid economic development and improvement of living conditions environmental policy is being given a higher priority and becoming more stringent. 6.6.5 Financial Issues

Lack of finance is often an important barrier to cleaner coal technology transfer. The following measures will enhance the possibilities for technology transfer: (i) Both government and international organisations will devise more favourable policies and offer concessional finance for the introduction of advanced cleaner coal technologies in the form of soft loans, capital subsidies or grants. (ii) Cleaner coal projects will become economic if the issue of pollution costs is addressed. This issue is linked to the reform of the pollution levy system. (iii) The cost of cleaner coal equipment manufactured in China is much lower than the cost of imported equipment. Hence, there is a strong economic and financial incentive to maximise the local manufacture of equipment. This can only be realised with technology transfer. 6.6.6 Maturity of the Technology

As end users, power companies will only employ mature technologies. It is generally deemed to be crucial that at least two reference plants of the same or comparable size should be operating. For newly developed technologies a demonstration project of relevant size and parameters is important. 6.6.7 Issue of Intellectual Property

Gradually, the move to commercialise state-owned industries is strengthening respect for intellectual property rights. Furthermore, the move to a competitive market will eventually bring about a situation in which companies in China will have less incentive to share information with each other. 6.6.8 Long-Term Collaboration

Joint ventures between Chinese and foreign firms or involving technology licensing agreements can potentially facilitate the transfer of the wider

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knowledge, expertise and experience necessary for managing technological change. Joint ventures in particular have one important feature which can help collaborative relationships in China to be successful: a relationship that gives both sides a stake in the future success of the product or service concerned, and allows the build up of trust. 6.7 Conclusions Whilst the utility scale HRSG market has been healthy in recent years, there is a predicted sharp downturn in the HRSG market in the shortmedium term due to plant over capacity. The situation is not expected to pick up again until around 2007-2011. Key future HRSG markets are seen as the USA and China (via IGCC). Non technical barriers in these two markets include the price/availability of gas in the USA and administrative/financial issues in China. For industrial scale HRSGs, the European market is depressed due to falling electricity prices and rising gas prices. However potential markets include Russia, Central and Eastern European (CEE) countries, Turkey and the Middle East. In the USA, despite problems on the utility scale, there are still opportunities for development of CHP schemes on industrial sites, largely driven by security of price and supply issues in the volatile deregulated electricity market. The current surplus of generating capacity in the UK and fluctuations in the price of natural gas have led to a low requirement to build large scale power generation plant within the UK. The only plus side is that with the effects of flexible operation becoming more apparent, plant performance upgrade opportunities are present. The combination of NETA and a high natural gas price has dramatically reduced the UK market for CHP and the climate change levy is not seen as being an adequate incentive to invest in new HRSGs / CHP schemes. Enhanced government support for CHP is required if the target of 10 GWe by 2010 is to be met.

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UK ACTIVITIES

This chapter reviews the prospects of UK manufacturers in the global HRSG market, and their capabilities. Areas of current research, development and demonstration (RD&D) which are being undertaken in the UK are indicated alongside recommendations of areas of significant future focus. 7.1 Prospects of UK Suppliers and Manufacturers in the Global Market

Large, new build HRSG manufacture, as with many other heavy engineering manufacturing business within the UK, is finding it increasingly difficult to compete with the low costs associated with both European competition based on the continent (e.g. in Italy and Spain) and the significantly reduced outlay incurred by manufacturing in East Asia. With more modular HRSG designs becoming commonplace, the future of UK HRSG companies in the new-build market lies in the ability to sell, supply and assemble HRSGs, based on their own designs and advanced technologies, albeit that the standard components may not necessarily have been manufactured inside the country. Within such an environment, licensing agreements and collaborative partnerships are therefore deemed essential in order for companies to maintain the ability to compete in the global market. In order to form such alliances, UK companies must be in a position to offer something in return. Under such conditions the requirement to be continually developing new technologies becomes vital. Therefore to guarantee future long-term prospects for UK suppliers and manufacturers in the global market, its knowledge and development of leading edge technologies must be maintained. 7.2 UK Capabilities in HRSG Design, Manufacture and Supply Utility-Scale

In terms of UK based large utility HRSG manufacture and design, Mitsui Babcock has a significant presence within the UK. Mitsui Babcock is a major energy engineering company incorporated in the UK and since 1995, a wholly owned subsidiary of Mitsui Engineering & Shipbuilding of Japan. The company is a technology leader in large fossil fuel steam generating plant, and specialises in the design, engineering, manufacture, construction, commissioning and after sales servicing of high efficiency, high availability coal, oil, and gas fired boilers for the power stations of electricity generating companies world wide. The company is also a major manufacturer and supplier of heat recovery steam generating plant, industrial fluidised bed and other clean burn coal fired boilers, coal milling plant, flue gas desulphurisation plant and low NOx technologies.

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Up until the mid 1990s and operating at the time as Babcock Energy, Mitsui Babcock was one of the worlds foremost suppliers of HRSGs. In 1993 Mitsui Babcock were nominated as the worlds leading supplier of HRSGs and were winners of the coveted Power Engineering International project of the year award. To date the company has won contracts in some 23 different countries. However by the mid 1990s the HRSG market suffered a severe downturn with limited opportunities and reduced margins. To compound this, the market was migrating from assisted circulation to natural circulation designs and the companys specific technology offering became less competitive. However with a recent upturn in the fortunes of the HRSG market particularly in America, Mitsui Babcock have enhanced their product range by concluding a licensing agreement with Babcock Hitachi KK for natural circulation designs. Significant orders for utility plant HRSG supply such as the natural circulating HRSG for Naco Nogales power plant in Mexico and the assisted circulated HRSG employed at Blackpoint power station in China have been completed. Mitsui Babcock employs approximately 3000 people in its various operations in the UK and abroad. Its headquarters are at Crawley in the UK but operates locally with regional operations elsewhere in the UK and around the world. The companys strengths lie in its depth of engineering capabilities, its technology base, its extensive manufacturing facilities, its considerable experience in site erection, commissioning and servicing of major power plant in countries across the world and its ability and experience in managing very large multi-disciplinary projects. The companys combination of technological, financial and skill resources enable it to deliver projects in a range from 10 million to 400 million, anywhere in the world. Thermal Engineering International Ltd Greens is the largest independent manufacturer of utility HRSGs in the UK. Originally known as E Green & Son the Wakefield based company has amassed over 150 years of experience in the field of heat recovery since its founder Edward Green invented and patented the worlds first economiser which he patented in 1845. TEI Greens has manufactured Utility HRSGs for most of the worlds leading boiler designers/makers as many no longer support their own manufacturing facilities. TEI Greens has been successful in manufacturing HRSGs for domestic and export projects and has a wide experience of different designs including vertical and horizontal gas types and once through designs. Currently, around 40% of all the UKs utility HRSGs have been manufactured by TEI Greens. TEI Greens are holders of the ASME S & U stamps and have a large facility of over 100,000m2 with extensive workshops. It has 3 x High Frequency Finning machines in its Wakefield Factory (10 worldwide) for the manufacture of high frequency welded helical fin tubes as used in modern HRSGs. The facility is capable of producing over 120,000 tubes and 10 major HRSGs per annum.

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There is also a number of major utility-scale HRSG turnkey contractors operating within the UK, although their headquarters and manufacturing facilities are generally based overseas or manufacture is sub-contracted. Alstom Power, Foster Wheeler Energy Ltd, Mott Macdonald, Nooter/EriksenCCT Ltd and Siemens KWU all fall within this category. 7.3 UK Capabilities in HRSG Design, Manufacture and Supply Industrial-Scale

Wellman Robey and BIB Cochran both manufacture and supply smoke tube (shell boiler) type HRSGs. Wellman Robey is owned by the Wellman Group of the UK and BIB Cochran is owned by the Mechmar Corporation of Malaysia. Wellman Robey supply units in the 5-10MW range for use in exhaust heat recovery behind GTs; gas and diesel engines; incinerators, kilns and furnaces; and process integrated units in petrochemical, other chemical and iron and steel industries. It has its own manufacturing capabilities at its factory in Oldbury, and also offers contract manufacturing services. Besides HRSGs, Wellman Robey supplies a range of fired package boilers and offers after sales support and maintenance. BIB Cochran similarly supplies units for a range of exhaust heat recovery and process integrated applications. It manufactures its products at its factory in Dumfries and Galloway and its product range also includes a range of fired package boilers. It has representation in many counties in eastern and western Europe, the Middle East, south east Asia, India and the Americas. It also provides various after sales services. M E Engineering is owned by the Thermax group of India. It only supplies bespoke units rather than package units. It has a range of water tube designs for exhaust heat recovery and process integrated applications. In GT exhaust heat applications, the range of GTs served is from 5MWe to around 70MWe. Besides heat recovery systems the company can supply boilers for a wide range of solid, liquid and gaseous fuels. The company does not have its own manufacturing facilities, but uses either the factory of its parent company in India or sub-contract manufacture. Industrial HRSGs are designed and manufactured in house by TEI Greens. These may be of a water tube or smoke tube design and may incorporate supplementary or auxiliary firing where required. The UK arm of Nooter/Eriksen also supplies industrial HRSGs although its design capability is based in the US and manufacture is sub-contracted. Details of each of the companies described above are summarised in Table 10 below.

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Company

Ultimate Parent Company

BIB Cochran

Mechmar Corporation Malaysia

HRSG Business Annual Turnover (range) -

HRSG Designs

Scale

Applications

Capabilities

Other Products

Smoke tube, Package, Optional supplementary firing

Up to 35 tph steam at up to 35 barg

CHP, GT exhaust, reciprocating engine exhaust, incinerator flue gas, petrochemical, other process industry

Wellman Robey

Wellman Group, UK

$1-$5M

Smoke tube, Package, Optional supplementary firing

5-10 MW or up to 20MW if supplementary fired. Up to 40 tph steam at up to 35 barg and 360C, saturated or superheated Up to 55 tph steam at up to 60 barg and 450C, saturated or superheated

CHP, GT exhaust, reciprocating engine exhaust, incinerator flue gas, petrochemical, other process industry, iron & steel CHP, CHP & cooling, GT exhaust, reciprocating engine exhaust, incinerator flue gas (clinical, municipal), petrochemical, other process industry, biomass IGCC, iron & steel, offshore oil production

ME Engineering

Thermax Group, India

$0.5-$1.0M

Smoke tube, Water tube, Optional supplementary firing

Site surveys, Design, Manufacture in house, Installation, Commissioning, Training, Service, Repair and maintenance Spares supply Design, Manufacture in house, Commissioning, Training, Operation, Service, Repair and maintenance, Spares supply Design, Contract manufacture local to project or at parent company factory in India, Installation, Commissioning, Training, Repair and maintenance

Gas burners, Package units: Thermax, Clansman and Calpac hot water boilers Wee Chieftan, Thermax single and double furnace, Borderer and Coalmaster steam boilers Pressure vessels, Sub-contract manufacture, Package units: Robey low NOx boilers, STONE steam generators, Ygnis hot water and steam boilers Biomass & fossil solid fuel boilers (travelling , dumping and pinhole grates, fluidised beds) up to 100 tph evaporation, Liquid / gas fired single / bi drum water tube boilers up to 300 tph evaporation, Fired once through coil boilers up to 50 tph evaporation and 200 barg Re-tubing, air-preheaters, economisers, Heat recovery to water,

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TEI Greens

Thermal Engineering International

$1-10M

Smoke tube, Water tube, Optional supplementary firing or auxiliary firing

Various from industrial to utility scale.

Nooter/Eriksen CCT Ltd

CIC Group Inc.

Smoke tube, water tube, optional supplementary or auxiliary firing.

Various from industrial to utility scale.

Waste heat recovery from boiler and process flue gas streams in power generation (CHP & CCGT), refining, chemical, process and general industries. Power generation (CHP & CCGT), designs for waste incineration and process industry applications. Inclusion of catalysts possible.

Design, Manufacture in house, Unit build, Erection, Commissioning

water/glycol, thermal oil, Absorption cooling Helical finned tube manufacture in both solid and serrated fin profiles. Utility-scale HRSG manufacture in house, unit build, erection and commissioning (but not design) Optimised designs for cycling and constructability. Enhanced Oil Recovery OTSGs for 80% quality steam.

Design (overseas), Manufacture (subcontracted), Unit build, erection, commissioning.

Table 10: Capabilities of UK industrial HRSG suppliers.

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