PowerGen Asia Bangkok

October 2013

Gas Turbine multi-fuel capability for Power Generation and Cogeneration Per Johansson / Mike Welch / Brian Igoe: Siemens Industrial Turbomachinery Siemens AG 2013 All rights reserved.

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Keeping the Wheels of Industry turning Contents

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• Natural Gas: the Fuel of Choice

3

• Refined Liquid Fuels

6

• Volatile Liquid Fuels

9

• Alternative Gas Fuels

12

• Mixed Fuel Operation

18

• Summary

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Natural Gas: the Fuel of Choice Widely available, clean burning fuel

%

Forecast share of future energy market by fuel type

• Low cost • Forecasts indicate growing role of natural gas in energy generation • LNG and pipelines allow global trading

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0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

at ur al G as

• Low air pollutant emissions • Excellent fuel for Dry Low Emissions (DLE) combustors

CO2 emissions by fuel type (tonnes CO2 per MWh )

N

• Low CO2 emissions • High efficiency power generation • High efficiency Cogeneration

• Gas-rich areas are not necessarily those with high gas demands • Spot market may see gas shipments diverted to highest price markets

USD/million BTU

Growing demand, rising costs

• Countries relying on imports may see rising prices or gas shortages • Policy may decide which consumer group gets preference in times of supply shortage • Domestic consumers • Industry Variation in gas prices at major trading hubs Restricted © Siemens AG 20XX All rights reserved. Page 4

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What can be done if natural gas is not available ?

• Temporary interruption •

Liquid fuel as back-up

• Long-term interruption or non-availability of gas • Look for alternative fuels • Refined Liquid Fuels • Volatile liquid fuels • Alternative gas fuels • All these alternatives are potential fuels for Gas Turbines •

Project economics may be affected but may be preferable to complete loss of production

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Gas Turbine fuel test facilities

Refined Liquid Fuels Wide range of fuels that allow continuous energy production • Dual fuel gas turbines • Natural Gas as primary fuel • Liquid fuel as back-up • Liquid fuel back-up • Typically premium refined fuel such as #2 diesel or kerosene • Automatic changeover on gas turbines between fuels • Gas to liquid on falling gas pressure • Premium refined fuels are suitable for Dry Low Emissions combustors • But premium liquid fuels are expensive • Prolonged operation will impact on operating costs Restricted © Siemens AG 20XX All rights reserved. Page 6

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Dry Low Emissions burners for the Siemens Light Industrial Gas Turbine range

Refined Liquid Fuels

Cheaper refined fuels are available • Intermediate (IF) and Heavy Fuel Oils (HFO) can be used in some gas turbines • High viscosity • High contaminants • Unsuitable fuels for most gas turbines • Suitable for Siemens SGT-500

Size comparison SGT-500 burner to aero derivative gas turbine burner

• Residual fuels 40 – 50% cheaper than diesel and kerosene • Reduced operational costs for long periods without natural gas • Also possible to use treated crude oil or refinery residual oils

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SGT-500 Combustion Can

Tri-fuel capability compelling feature for order placement

EDO Cement, Nigeria • Siemens to supply 3 x SGT-500 generator sets for island mode operation in a new cement factory • Natural gas as primary fuel • But pipeline gas supplies not secure • Potential outages could last months • Tri-fuel gas turbine configuration was essential • Capability of SGT-500 to operate on cheaper HFO was key factor in order award SGT-500 Gas Turbine

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Volatile Liquid Fuels

By-products from processing or refining processes that may offer a lower cost alternative to premium refined fuels • Require changes to the liquid fuel system of Gas Turbines • Need to ensure fuel stays as a liquid

Gas flaring in the Oil industry: a potential source of NGLs and LPG

• Low viscosity and lubricity require special fuel pumps • Ethanol has only 60% energy content of diesel • Greater volumes required so larger pipework, burner galleries etc

Siemens SGT-100 Low pressure LPG / naphtha burner Restricted © Siemens AG 20XX All rights reserved. Page 9

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Example installation - Volatile Liquid Fuels Naphtha-fuelled installation, Turkey • Industrial customer suffering from frequent power outages and natural gas pipeline not yet constructed • Selected naphtha as fuel for initial years of operation until natural gas became available • Chose Siemens to supply a gas turbine for a Cogeneration plant • Improved production volumes and quality due to reliable supplies of electricity and process heat Siemens SGT-100 naphtha-fuelled gas turbine

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Alternative Gas Fuels

Alternative gas fuels can act as a substitute natural gas • By-products from industry • Coke Oven Gas; Blast Furnace Gas; Refinery Gas • Hydrogen-rich gases with carbon monoxide and low heating value • Naturally-occurring methane-rich gases • Landfill gas, digester (sewage) gas, biogas • Weak natural gases (methane + carbon dioxide) • Is handled with changes to DLE systems or utilizing conventional combustion systems Cogeneration plant in a Refinery

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Alternative Gas Fuels Coke Oven Gas Installation, China • Coke Oven Gas (COG) mainly composed H2 and CO is a waste gas from the steel industry • Often just flared off as a waste product • Siemens SGT-200 high hydrogen fuel capability expanded to cover COG • Gas cleaning prior to turbine to remove or reduce levels of contaminants • 2 units installed with > 25000 operating hours Siemens SGT-200 configured for operation on Coke Oven Gas (COG), China

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Alternative Gas Fuels Ethanol Processing Plant, China • Process produced waste biogas • 60% methane (CH4) • 36% carbon dioxide (CO2) • Wobbe Index of 21MJ/Nm3 • Biogas fuel only configuration • Siemens SGT-400 Dry Low Emissions combustor tested to prove satisfactory operation and start capability

• Cogeneration plant entered service May 2013

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Siemens SGT-400 in operation on a weak gas fuel, China

Alternative Gas Fuels

University of New Hampshire (UNH), USA • Tri-generation plant with 15ppm Nox requirement • Originally envisaged to operate on natural gas with diesel fuel as back-up • Landfill gas from nearby source emerged as low cost fuel • Technical challenge is low and varying WI

Siemens SGT-300 tri-fuel DLE gas turbine

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Mixed Fuel Operation

Sometimes there just isn’t enough gas…

Mixed Fuel Operation: 'Topping Up' with Liquid Fuel

• Common on Heavy Oil developments in the Oil & Gas industry

90.00%

• Siemens gas turbines have the ability to operate on two fuels simultaneously

60.00%

70.00%

Liquid Fuel %

• Use a suitable liquid fuel to compensate for a shortage of gas

80.00%

50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1%

10%

25%

50%

75%

100%

GT Load

Permissible operating envelop for an SGT-500 on mixed fuel operation where gas is the primary fuel with liquid fuel top-up Restricted © Siemens AG 20XX All rights reserved. Page 17

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Summary • Natural Gas is expected to be the fuel of choice for many years to come. • The volatility of the NG market is expected to increase, making alternatives for back-up or substitution fuels more interesting • Secure supply of energy • Optimisation of economics • Locally available ‘waste’ fuels can displace natural gas • Potentially ‘free’ or lower cost fuels • Avoid import of natural gas by using local resources to best ability • Reducing environmental impact Siemens gas turbines have the capability to meet the new requirements on dual/tri fuel operation on most kinds of gaseous and liquid fuels. Restricted © Siemens AG 20XX All rights reserved. Page 18

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Thank you for your attention Per Johansson Product Manager – SGT-500 Siemens Industrial Turbomachinery AB Slottsvägen Finspång Sweden Phone: +46 (122) 82037 Mobile: +46 (70) 203 01 71 E-mail: [email protected]

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