Economic Justification of a Steam Turbine Retrofits

Piotr Czerwiski 30th October 2012

Agenda

Introduction to Retrofitting

Page 3

Alstom Portfolio for Retrofit Solutions

Page 8

Economic Aspects of Steam Turbine Retrofits

Page 18

Summary

Page 28

Economic Justification of Steam Turbine Retrofits

P2

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Introduction to Retrofitting
What is a Retrofit Project?
The replacement of existing equipment specifically to improve performance. By applying many of the design elements and principles Alstom use in new equipment, performance levels can approach modern standards

Retrofitting
Economic Justification of Steam Turbine Retrofits

Improved Performance
P3

Lower Emissions

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Introduction to Retrofitting
Drivers for Retrofit
Financial
Increasing demand for electricity Lower operational & maintenance costs Increasing fuel costs Improved revenues

Technical
Increasing demand for performance Increased maintenance intervals Plant life extension Change of fuel

Regulatory
Environmental & emissions control Security of energy supply Approval constraints

An approach is needed that will simultaneously address power uplift, reliability, life extension & emissions control
Economic Justification of Steam Turbine Retrofits P4
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Introduction to Retrofitting
Possibilities for Investments
Life Time Extension (LTE): one to one replacement of components Component Upgrade: Improvement of components during normal service activities to increase power output, efficiency, reliability System optimisation: Leverage potentials of components of a system to improve power output, efficiency and operational flexibility Component Retrofit: Improvement of efficiency and power output (major investment) of components System Rehabilitation: combining LTE measures, upgrades and retrofits of different components to an integrated plant optimisation (Integrated Solution) integration of new fuels Plant Replacement (new power plant)
P5

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Introduction to Retrofitting
Overhauling or Retrofitting
Overhaul
Restoration of original operational properties Minor performance increase Risk of damages remains, more expensive overhauls in the future and shorten period between major overhauls Limited possibility of equipment lifetime prolongation

Retrofit
Considerable improvement in turbine performance High operational reliability up to end of turboset lifetime Time between main overhauls increased to 100 000 hours Higher competitiveness of power generation Reduction in gases emission (especially CO2 and NOX)
P6

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Agenda

Introduction to Retrofitting

Page 3

Alstom Portfolio for Retrofit Solutions

Page 8

Economic Aspects of Steam Turbine Retrofits

Page 18

Summary

Page 28

Economic Justification of Steam Turbine Retrofits

P7

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Technology Steam Path design
Reaction Technology (RTB)
Pressure drop across fixed & moving blades Typically higher number of blades per row Drum rotor construction

Impulse Technology (ITB)

Pressure drop across fixed blades Typically fewer blades per row with larger blade chords Disk and Diaphragm construction
Economic Justification of Steam Turbine Retrofits P8
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Each Project is Unique!
Consideration of the specific Customers needs When evaluating the benefits of retrofitting, each project will be unique with its own combination of market and local factors to consider Identification of the best solution Todays market requires Bespoke innovative solutions State-of-the-art technology catering for a wide range of application possibilities Reliable project execution and installation Sustained high performance operation
Economic Justification of Steam Turbine Retrofits P9
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Retrofit Projects Alstom approach
Assessment of current condition of the Power Plant
questionnaires ECO|RAMTM STEP|XTM

Definition of drivers for retrofit project Retrofit products Technical-economical analysis Technical and commercial offer Project execution
P 10

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Introduction to Retrofitting
Alstom Seemless Portfolio for Modernization Solutions
Repair Overhaul Technical Condition of the Unit Modernization

Integrated Retrofit

Retrofit
Economic Justification of Steam Turbine Retrofits P 11

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Possibility to reuse existing elements
Replacement of some components and revitalization of elements operating in high temperatures: HP and/or IP casings valve chests.
L21HMF after 200 000h

revitalization possible

revitalization not possible

Economic Justification of Steam Turbine Retrofits

P 12

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Modernization packages - example for 200 MW turbine
M01 Oil system M07 Electrohydraulic
control system of IP-LP bypass system modernization cooling system control system

M12 Modernization of
IP control valves casing

M18 Improved IP ITB

blading system

M02 Forced turbine

M13 Cooling of LP M14 Holes for endoscope

inspection

M19 LP diaphragm M20 Pedestals

M08 Modernization of

modernization modernization

M03 Modernization of

jacking oil system

M04 HP and LP

bypass systems gland steam system modernization: Binary control and starting automatics

M09 HP stop valve chest

modernization

M15 Adaptation for

process steam and heat extraction of casing bolts

M21 Control system

M05 Modernization of M06 Control system

M10 Modernization of

HP control valves

M16 Hydraulic prestress M17 Improved HP ITB

blading system
P 13

M11 Individual actuators

modernization Measurement: sensor assembly data transmission and visualization

of HP control valves

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Retrofit solutions - example for HP part of 200 MW turbine
upgrade inner module retrofit

power output increase

3,0 MW

power output increase

6,0 MW

full module retrofit

Solutions: optimised for nominal or partial loads reaction or impulse technology reusage of components which are in sufficient condition prepared for step by step philosophy 8,0 MW
P 14

power output increase

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Retrofit solutions - example for 200 MW turbine
HP full module IP full module

power output increase up to 8 MW

power output increase up to 3,5 MW Solutions: optimized for nominal or partial loads reaction or impulse technology reusage of admission systems or new systems delivered optimized for specific cooling water temperature prepared for step by step philosophy
P 15

LP retrofit

Solutions with different last stage blades possible: 33 inch 37 inch 41 inch 43 inch

power output increase up to 12 MW

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Portfolio for Retrofit Solutions

Interactions with other equipment - area for optimization
Boiler
changed live steam flow changed steam parameters (pressures, temperatures) feed water temperature sprays into reheater

Generator and Transformer

maximal active power output that can be transferred

Condenser
optimal selection for LP last stage blades

Plant products implementation

steam temperature control cold end performance solar boost
Economic Justification of Steam Turbine Retrofits P 16
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Agenda

Introduction to Retrofitting

Page 3

Alstom Portfolio for Retrofit Solutions

Page 8

Economic Aspects of Steam Turbine Retrofits

Page 18

Summary

Page 28

Economic Justification of Steam Turbine Retrofits

P 17

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Investment Decision Process
Operational problems of existing unit Possible modernization / retrofit solutions Benefits from modernization / retrofit solutions Costs of different modernization / retrofit solutions Risk assessment Financial measures
Any investment decision is based upon some sort of analysis of costs and benefits
Economic Justification of Steam Turbine Retrofits P 18

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Retrofit Benefits
Extended lifetime Increased efficiency Reduced fuel input Additional capacity Improved load factors Improved reliability and availability Reduced maintenance Compliance with the newest national regulations (emission reduction, etc.)
Economic Justification of Steam Turbine Retrofits P 19
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Cost of Retrofitting
Equipment costs design, manufacture, delivery, technical field advice for installation Installation costs labor, materials, additional outage time / lost generation Project management costs progress meetings, inspections etc. Risk assessment late delivery benefits not achieved equipment does not fit failure of new components
Economic Justification of Steam Turbine Retrofits P 20
ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Financial measures
Specific first cost (kEuro/MW)
advantage: disadvantage: simplicity it fails to take into account the time value of money

Net Present Value (NPV)

advantages: the method takes account of the time value of money the method takes account of all relevant cash flows the method provides a clear decision rule concerning acceptance/rejection of a project NPV does not allow a simple comparison of projects using a single number
P 21

disadvantage:

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Financial measures
Internal Rate of Return (IRR)
advantages: disadvantage: the method allows the simple prioritization of projects reporting simplicity IRR and NPV can give different prioritization of projects

Payback time
Simple payback Payback ignores the time value of money ignores any benefits that occur after the payback period takes account of the time value of money ignores any benefits that occur after the payback period
P 22

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Assumptions for simplified economic analysis
power output

Load profiles
Pel1 Pel2 Pel3

Heat Rate characteristics

HR1 HR2

Before Retrofit After Retrofit

HR3 Pel3

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Pel1

Pel2

Weighted Power Output Power Output Weighted factor

w Pel

Weighted Heat Rate improvement Pel3 c Heat Rate improv. Weighted factor
HR w
P 23

Pel1 a

Pel2 b

HR1 HR2 HR3 a b c

a Pel1 b Pel2 c Pel3 abc

a HR1 b HR2 c HR3 abc

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Benefits coming from Heat Rate improvement
SO2 emiss. reduc. [tons/year] CO2 emiss. reduc. [tons/year] Coal savings [tons/year]

Emission Reduction Through Retrofitting

Economic Justification of Steam Turbine Retrofits

P 24

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Financial measures Overhaul versus Retrofit

Economic Justification of Steam Turbine Retrofits

P 25

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Aspects of Steam Turbine Retrofits

Comparison of different investments
1

Net Present Value after 25 years

3
Coal saving and CO2 reduction

5
Additional energy sold

6
P 26

Economic Justification of Steam Turbine Retrofits

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Agenda

Introduction to Retrofitting

Page 3

Alstom Portfolio for Retrofit Solutions

Page 8

Economic Aspects of Steam Turbine Retrofits

Page 18

Summary

Page 28

Economic Justification of Steam Turbine Retrofits

P 27

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Economic Justification of a Steam Turbine Retrofit

Summary
The economic justification of any investment is an important milestone that should be undertaken thoroughly to understand full picture Assessment of the features and benefits provided by a retrofit and their economic evaluation enables proper selection of an investment Throughout the process, however, it is essential to assess and manage the various risks ALSTOM is perfectly positioned to help our Customers find the optimal retrofit solutions

Economic Justification of Steam Turbine Retrofits

P 28

ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

www.alstom.com