London Engineering Group

Report of the subcommittee

On

Barge Mounted Power Plants=

October 2003

Contents

1. Introduction

2. Transportation to site of operation

3. Types of Operating Environment

Floating static
Floating Special Mooring
Grounded
Moved about barges
4. Land based Auxiliary Equipment Cabling up

Fire Protection
Fuel Supplies
Warehouse and Stores
5. Location Considerations

Remoteness
Inaccessible
6. Types of Power Generation Plant

Diesel Engines
Gas Turbines
Steam turbines
7. Contamination

Fuel Quality
Water Quality
Air Quality
8. Impact of wave motion and environmental conditions

9. Maintenance

10. PML Considerations

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Diesel Sets
Waste Heat Boilers
Construction
Other major non PML losses
11. Consequences of a major failure

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12. Underwriting considerations

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1. Introduction
This committee was formed to look at the unique
characteristics of Barge Mounted Power Plants, and the
implications to machinery Breakdown and Machinery Loss of
Profits Insurance.
Power barges have unique characteristics, when compared to
other forms of Power generation, in that the construction of the
plant is undertaken in a completely different environment to
one in which the plant will operate.
Barges will be manufactured within a shipyard and then fitted
out with generating equipment before being transported to the
location where they are to operate
This has implications for the ability to maintain and repair such
plants and can pose unique problems when major work is to
be undertaken.
The composition and operating conditions will vary
considerably from barge to barge
Power barges offer a quick and economic solution to building
Power plants in remote parts of the world. All-weather
accessibility is a problem and consequently entails
considerable extra expense in transporting components to site
as well as skilled construction labour which need to be housed
and the availability of construction equipment .

2. Transportation to Site of Operation

Transportation of the barge to the
site of operation can be by wet
tow, when the barge is floating
freely and is pulled by a larger
vessel or tug boat, or conveyed
on/in a specially constructed
Ocean going ship
Two Frame 6B power barges leaving for Nigeria

Excessive movement during a rough sea crossing can cause derangement of

components and unbalancing of rotor parts if not properly secured. Possible
displacement of fluids.

Five barges onboard conveying ship

Contamination can occur due to the ingress of salt water and the atmosphere
having a high saline content.

Heavy lift ship ballasted for power barge loadout

3. Types of Operating Environment

Floating Static
Where there is to the long-term demand
for a constant power supply, the barge
will be permanently located at one site.
Barges can be permanently moored
alongside wharfs, jetties, quays, and
while still being a floating vessel will not
move from this location.
Such barges are therefore exposed to
wave movement and potentially impact
from other vessels.

Mooring arrangement

Floating Special Mooring

In some instances special moorings have been created where the floating
barge is protected from passing traffic. The site is dredged to create a
mooring off a river. Another example of a special mooring is where a
permanent wet berth is created with a lock gate enabling the power barge to
be floated into the mooring and then the water level maintained to protect the
barge form fluctuations in river level. This also provides protection from
impact from other vessels.
Grounded
To achieve a more stable operating environment and eliminate perils of sea or
water, a dock is excavated, the barge is floated in and then sealed off from
the water course, water is pumped out and the dock is filled to create a
permanent land based generating station.
For all intents and purposes this is now a land based station, Special
considerations still apply as the means by which the barge was transported,
could not be utilised in the event that spares or replacement parts needed to
be delivered.
Moved about Barges
Barges can provide the temporary power supply when land based generating
plants undergo major overall for maintenance. Barges used in these
circumstances are then moved from site to site to cover for stations which are
out of commission. In some instances barges are used to supply power where
short term power is needed to overcome temporary shortages. In these
circumstances the facility will have a power purchase agreement probably of
less than ten years duration. Barge owners sometimes rely on the threat of
moving their barges to another country as a means of extracting payments
from customers who are reluctant to pay.

4. Land based Auxiliary Equipment

Cabling up
The power barge usually has a generator
step up transformer and switching substation mounted on the barge. An overhead
line usually makes the connection to the host
system. This provides a flexible interconnect
allowing the barge to move with changes in
tide or river level without a significant impact
on the reliability of the connection. A cable
connection, particularly at higher voltages is
less reliable where the barge moves causing
Land Based Main transformers
the cable
to flex. The cable design has to ensure that bends are not less than the
minimum recommended. The cable is protected from direct sunlight in high
ambient temperature locations and is properly clamped to secure the cable in
the event of short circuit to earth, A short circuit to earth results in high forces
trying to force the cables apart. This can result in the cable lashing about and
causing damage to equipment and injuries to personnel.
Fire Protection
The power barge may be moored in a place where the land based local fire
fighting capability is not great or if adequate will have difficulty reaching the
barge. The barge usually has its own fire fighting capability in the form of
diesel and electric motor driven firewater pumps. In some instances either or
both of the pumps are inadequate to supply sufficient water. In some cases
the only large capacity pump is electric and depends on the barge to supply
the electric power.
Shore based fire fighting equipment should be capable of operating
independently of the power barge.
If the power barge fuel supply is from fuel barge moored close to the power
barge, this adds another fire hazard. A major fire on the fuel barge may
spread to the power barge or cause heat damage to expose equipment
Fuel Supplies
Barges are typically fuelled with natural gas or liquid fuels and in some cases
both. Where barges move with changes in tides or river levels the fuel
connection to the barge has to be flexible. The flexible connection needs to
be well designed and maintained to prevent failure of the connection. Oil
spills are likely to have a significant environmental impact with significant
clean-up costs.
Barges fuelled with naphtha or gas condensates pose a higher fire risk than
those fuelled with distillate oil because these fuels are very volatile at
relatively low temperatures and have a low self ignition temperature.
Because of the fire hazards associated with most fuels strict no smoking
policies should be in place with prominent notices posted around the facility
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Warehouse and Stores

Warehouse facilities for spare parts storage can be severely limited when the
major stores area is on the barge itself. This can result in inadequate spare
parts holdings with the possibility of increased exposure to business
interruption claims in the event of a plant failure.

5. Location Considerations
Remoteness
Power barges are an attractive solution to the provision of power to remote
locations, providing of course that they have access to the sea. Power barges
being constructed away from the location where they will operate has the
advantage that components do not have to be transported across hostile and
difficult terrain. Labour costs are minimised as skilled staff do not have to be
transported to and accommodated in remote locations avoiding the extra
infrastructure costs and allowances.

Five operational power barges

Inaccessible
Whilst the barge has been sited at a location with navigational access to the
sea, the location may be inaccessible or not easily accessible over land. This
becomes a major consideration when maintenance or repairs are undertaken.
It may not be possible for large cranes that would be required for lifting
machinery to access the site.
Weight limits on roads and bridges, or height of tunnels may prevent Large
replacement components being transported to the site by road or rail.
Where it is not economically or physically possible to supply cranage and
parts by waterway, the option is to remove the barge to a dry dock or
quayside, where the work can be undertaken.

6. Types of Power Generation Plant

Diesel Engines
Operating in isolation or in association
with waste heat boilers and steam
turbines, appear to be the most common
method of generation employed on
barges. The size of the diesel Engine
should not be underestimated and
equally the craneage needed for lifting
the block.
Marine Diesels are robust and have a
proven track record for operating in a
1.5 MW Waukesha reciprocating engine generator
marine environment. They are not.
immune to catastrophic failure An obstruction can however cause destruction
of the destruction of cylinders and crankshaft
Gas Turbines
Becoming more common, operating with waste heat boilers and steam
turbines. More susceptible to damage from environmental perils
Steam turbines
Not very often seen and then usually second hand, possibly previously in
military use

7. Contamination
Fuel Quality
Contamination Fuel may be conveyed by sea, potential contamination from
tanks of conveying vessel not being cleaned properly. Poor checking of
quality when fuel delivered, due to lack of facilities at site to analyse if fuel
meets design specifications, could lead to contaminated fuel being used.
Large sums of money transfer at this point and the possibility of incorrect fuel
being supplied for fraudulent purposes has to be considered.
When in close proximity to the sea, there can be exposure to salt water and
air with high saline content, which can cause contamination to fuel oil if there
is inadequate protection.
Water Quality
For barges with a steam cycle, make-up water quality is important. The
demineralised water storage tanks can become contaminated with salt water
and if undetected cause rapid corrosion damage to the steam generator. If
this water is used for NOx control on a gas turbine the introduction of sodium
and potassium will cause rapid corrosion of the hot gas path components.

Air Quality
High salt content in the air can clog air filters as well as causing accelerated
corrosion to compressors.

8. Impact of Wave Motion and Environmental Conditions

Not considered a problem during normal operation and with the anticipated
sea conditions. The mooring of the barge should act as a stabilizing factor to
reduce the impact of wave movement.
Extreme sea conditions could cause derangement or misalignment to occur.
The atmosphere will have a high saline and moisture content, which can
cause corrosion problems. Air purification will need to be capable of dealing
with this to filter out excessive saline and moisture.
Cooling water and feed water may well be drawn from the sea and purified
through a desalination plant on board. This must be capable of taking out the
salt content and coping with other pollutants which might be discharged into
the sea. The feed water is far more vulnerable to fluctuating quality than land
based sites.

9. Maintenance
Static risks should be no more hazardous than a conventional power plant,
subject to the ability to transport adequate spares to site and the competence
of the maintenance staff.
Maintenance standards are however sometimes less than those for similar
land based plant, because barge operators tend to have less resources and
the more remote locations are easily forgotten.
Barges which are moved from site to site, pose an enhanced risk, as there is
a tendency for maintenance to be neglected as responsibility moves from one
location to another.

10.PML Considerations
Diesel Sets
Overspeeding or obstruction can cause destruction of cylinders and
crankshaft. The cost to repair damage could exceed 50% of the unit value. .
Series loss through fuel contamination. If all units on a barge are being fed the
same fuel, any impurities in the fuel quality will equally cause damage to all of
the sets.
Waste Heat Boilers,
Distortion through dry firing.
Steam / Gas Turbines,
100% damage due to overspeeding / first stage blade failure.
Construction
Compact nature of the barge may increase repair costs
Other major non PML losses
Corrosion caused by poor feedwater quality
Fuel contamination
Corrosion of hot gas path components from Contaminated NOx control water
Winding failures due to salt water ingress on direct air cooled stators

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11. Consequences of a Major Failure

Unlike other power stations, power barges are not built or assembled at the
location where they operate. If major damage occurs, it may not be possible
to get a Jib crane either to the location or the location may prevent the crane
from operating alongside the barge. This could be either due to the barge
being moored away from the land or the ground not being solid enough to
support the weight of the crane and the Engine it is lifting.
The implications of not being able to repair on site and the barge being taken
to manufacturer/dry dock are that:
1. There is a loss of production for all units on the barge, not just the one that
is damaged, while the barge is away for repair.
2. The Barge is at risk during the Journey to dry dock, and if sinks there the
Loss of profit could be attributed to the original cause, till replaced and full
production resumes, with a replacement barge, subject to application of
the indemnity period.
3. There is an increased risk of damage to machines during the transit.
Exposure to a salt air and derangement due to rough weather could pose
an increased breakdown risk when the barge resumes operation.
4. There can be seasonal considerations, e.g. hurricane season, which would
prevent the barge from being moved at certain times of the year, resulting
in a prolonged interruption period.
5. Significantly increased repair costs.
6. Prolonged Interruption period and increased costs due to re-cabling
between ship and Shore

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12. Underwriting Considerations

Confirmation is needed that the largest generator set can be replaced at the
location of operation and that the barge is static and will not be moved to any
other locations
To avoid losses from perils of the sea and prolonged business interruption,
from an event occurring while the barge is removed for repairs, An Exclusion
needs to be applied for any loss or damage or consequential loss while the
barge is away from the location irrespective of the reason for removal being
due to an insured event or otherwise
Series Loss clause would protect from common fault claims and could assist
fuel contamination, but would have no effect if the damage was caused
simultaneously .
Warranties to ensure that units are serviced in accordance with OEMs
recommendations would document an obligation for the Insured to ensure that
machinery is properly maintained.
Suitable equipment depreciation clauses can be considered
A suitable fuel quality clause would be appropriate.
Cover would normally be subject to a satisfactory survey or subject to the
recommendations from a survey being carried out.

LEG Subcommittee
Steven Norcliffe Munich re
Simon Wilcock Swiss Re
Andrew Bowles Zurich London

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