THRML Effncy WRKSHP

TechnicalWorkshopReport h i l kh
ImprovingtheThermalEfficiencyof Coal FiredPowerPlantsintheUnitedStates C lFi d P Coal Pl t i th U it d St t

February2425,2010
SheratonBaltimoreCityCenter Baltimore,MD
Sponsoredby: DepartmentofEnergyandNationalEnergyTechnologyLaboratory
Acknowledgements
ThisdocumentisbasedonaworkshopthatwasconceivedandsupportedbytheNationalEnergy TechnologyLaboratory(NETL),ledbyPhilDiPietroandChuckZelekofNETL.Thereportwaspreparedby EnergySectorPlanningandAnalysisServicesunderDOENETLContractNumberDEFE0004001.Thelead authorsofthereportareRossBrindle,JackEisenhauer,AmandaGreene,MauricioJustiniano,Lindsay Kishter,MattMunderville,andRichardScheer.
ImprovingThermalEfficiencyofPowerPlants
WorkshopReport
TableofContents
ExecutiveSummary..........................................................................................................iv
MajorFindings..........................................................................................................................................v NextSteps...............................................................................................................................................vii HowtoReadThisReport........................................................................................................................vii
SummaryResultsGroupA..............................................................................................1
Participants...............................................................................................................................................1 Facilitators.................................................................................................................................................1 TechnicalOptionstoIncreaseThermalEfficiency....................................................................................1 BarrierstoImplementationofTechnicalOptions....................................................................................2 ProposedInitiatives..................................................................................................................................2 RawResultsGroupA..............................................................................................................................4
SummaryResultsGroupB............................................................................................13
Participants.............................................................................................................................................13 Facilitators...............................................................................................................................................13 TechnicalOptionstoIncreaseThermalEfficiency..................................................................................13 BarrierstoImplementationofTechnicalOptions..................................................................................14 ProposedInitiatives................................................................................................................................16 RawResultsGroupB............................................................................................................................17
SummaryResultsGroupC............................................................................................26
Participants.............................................................................................................................................26 Facilitators...............................................................................................................................................26 TechnicalOptionstoIncreaseThermalEfficiency..................................................................................26 BarrierstoImplementationofTechnicalOptions..................................................................................27 ProposedInitiatives................................................................................................................................27 RawResultsGroupC............................................................................................................................29
AppendixA:FullParticipantList......................................................................................38

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ExecutiveSummary
TheUnitedStatesisenteringaneraofunprecedentedchangeinthewayweproduceanduseenergy. Theconventionalthinkingabouthowenergyisextracted,converted,andconsumedisbeingchallenged bygrowingconcernsabouttheenvironmentalimpactsofpowergenerationonland,water,airquality, andclimate.Althoughthelongtermopportunitytoreshapeourenergyinfrastructureispromising,the currentrealityisthatfossilenergyremainsthebackboneoftheNationsenergyeconomy.Currently, abouthalfofourelectricityisgeneratedbycoalfiredplants,whicharealsoresponsibleformorethan 80%ofcarbonemissionsfromthepowersector.Acomprehensivecarbonmanagementstrategyshould bothaddresswaystoreduceemissionsthroughachangeinthefundamentalenergysupplystructure whichwilltakesignificanttimeandsimultaneouslyimprovetheperformanceoftheexisting infrastructureintheinterim.Onesuchoptiontoimprovetheexistingenergyinfrastructureisto increasethethermalefficiencyofexistingcoalfiredpowerplants,whichcanachieveneartermand sustainablereductionsingreenhousegasandotherenvironmentallydamagingemissions. TheU.S.DepartmentofEnergy(DOE)hasputforthavisionforreducingcarbonemissionsfromexisting powerplants:increasetheoverallthermalefficiencyoftheU.S.fleetofcoalfiredpowerplantsfrom 32.5%to36%by2020.Whenpowerplantefficiencyisincreased,lesscoalisburnedtoproducethe sameamountofelectricity,therebyavoidingtheassociatedCO2andotheremissions.Increasingoverall fleetefficiencyto36%wouldsaveroughly175millionmetrictons(MMT)ofgreenhousegasesperyear. Mostimportant,thesereductionscanbesustainedinfutureyears,providedthatgoodoperatingand maintenancepracticescontinue. AlthoughtheDOEvisionisbold,36%averagefleetefficiencyrepresentsacarbonreductionopportunity thatissubstantial,economicallyandtechnicallyfeasible,andnearterm.Thecurrentthermalefficiency oftheroughly900U.S.coalfiredpowerplantsvariessignificantly,from27%forthelowestdecileofthe fleettomorethan37%forthehighestdecile.Whiletheefficiencyofagivenfacilityisaffectedbythe heatingvalueofthecoal,thetypeofboilersystem,emissionscontrolequipment,andotherfactors, dataanalysisofplantperformanceindicatesthatopportunitiestoincreaseefficiencyexistacrossthe entirefleet.Yetthereisnosilverbulletforachievingthe36%efficiencyvision.Itwillrequireavarietyof strategiesthatinclude:1)widelyadoptingthepracticesandtechnologiesusedinthebestperforming plants,2)challengingthebestperformingplantstoseekadditionalefficiencyimprovements,and3) retiringpoorlyperformingplantswhereimprovementsarenottechnicallyoreconomicallyfeasible. Broadimprovementinpowerplantefficiencywillnothappenwithoutthecombinedleadershipof industryandgovernment.Theprivatesector,whichownsandoperatesmostcoalfiredplants,hasthe technicalexpertiseandbusinessacumentoidentifyandimplementefficiencyopportunities,whilethe governmentcanhelpfacilitatecollaborativedialogueandprovidetechnicalanalysisthatcansupport nationalinitiativestoachievetheefficiencyvision.Towardthisend,DOEandtheNationalEnergy TechnologyLaboratory(NETL)sponsoredanindustryworkshoponFebruary2526,2010,inBaltimore, MD,designedto: Exploretechnicalopportunitiestoimprovethethermalefficiencyofexistingcoalfiredpower plants, Identifythebarriersandchallengesthatinhibitimplementationoftheseopportunities,and Identifyspecificinitiativesthatcansubstantiallyincreaseefficiencyacrossthefleet.
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TheworkshopbuiltonapreviousmeetingheldonJuly1516,2009,inChicago,IL,thatprovidedan excellentfoundationforthistopic.1TheBaltimoreworkshopreachedouttoalargercommunityand broughttogether53leadingindustryexperts,utilityownersandoperators,equipmentvendors,energy consultants,powerindustryassociations,andresearchorganizationstoexplorethistopic.
MajorFindings
Detailedworkshopresultsfromeachofthethreeparallelworkgroupsareprovidedinthefollowing sections.Keyfindingsandthemeshighlightedbelowaredrawnfromtheseresultsandfromdiscussions duringtheplenarysessions. Broadarrayoftechnicalopportunitiesexistto improvethermalefficiency. o Workshopparticipantsidentifiedarobust portfolioofmorethan50distinct opportunitiestoimprovethermal efficiency,manyofwhichcanbeapplied broadlyacrossmostofthefleetofcoal firedpowerplants. o Numerousopportunitiestoimprove efficiencycanbefoundinnewand improvedprocesses;bettersensing, measurement,andcontrol;tighter operatingprocedures;betterandmore frequentmaintenance;improvedfuel handling;andcapitalupgradesand improvements(seebox). KeyTechnicalOpportunitiestoIncrease ThermalEfficiency
Identify,implement,andtrainworkersin bestpractices Incentivizebestoperatorsoremploya dedicatedplantefficiencyengineer Optimizeprocessesusingadvanced computationaltools Conductonline,realtimeperformance monitoringofefficiency Standardizeperformancemetrics Reduceair,water,steam,andfluegas leakage Replacesealsonairheaters,condensers, boilers,andtubecomponents Upgradeturbines,includingdensepack turbines,increasedexhaustareas,and redesignedseals Usevariablespeedmotors Lowerstacktemperature Uselowgradeheatforcoaldrying Usefluegascondensingheatexchangers Implementintelligentsootblowingsystems
Powerplantefficiencyisnoteasilymeasured. o Theheatrateofacoalfiredpowerplant isnotanessentialperformancemetricfor mostutilitiesandiscostlyanddifficultto accuratelymeasureinrealtime.Asasolid fuel,coalisnoteasytomeasureinreal time;maybesubjecttovariationinfuel quality;andmayrequirecostlyequipmentandengineeringtalent.Flowmeasurementofa solidfuelisatechnicalchallengethatcanhaveaveryhighmarginoferror. o MeasuringCO2/MWhmaybethebestavailableproxyforefficiencybutbettermeasures areneeded. o Betternationaldataonplantefficiencyisneeded,butthisishinderedbythevariationin methodsandaccuracyformeasuringplantheatrate. o Withoutadequateheatratedata,itwillbedifficulttomonitorimprovementsinthe overallefficiencyoftheU.S.fleetofcoalfiredpowerplants.
Seehttp://www.netl.doe.gov/energy analyses/pubs/NETL%20Power%20Plant%20Efficiency%20Workshop%20Report%20Final.pdffortheChicagoworkshop report.

WorkshopReport
Thereislittlefinancialincentiveforutilitiestoimprovetheirthermalefficiency. o Theneedforhighavailability,highreliability,andlowoperatingandmaintenance(O&M) coststrumpsefficiencyeverytime. o Manyutilitieshaverateclausesthatpassfuelcoststhroughtoconsumers.Thistakesaway thefinancialincentiveforutilitiestoreducefuelcosts. o Capitalinvestmentstoimprovethermalefficiencymustcompetewithnonoptional investmentsforenvironmentalcomplianceorotherenergyprojectsthatmayofferhigher returnsoninvestment. Newthinkingisneededontheroleofcoalfiredpowerplants. o Publicperceptionofcoalpowerasinherentlydirtymayinhibitefficiencyinitiatives.An efficiencyimprovementatacoalfiredpowerplantoughttobeviewedonequalfooting withothercleanpowersourcessuchassolar,wind,biomass,andnuclear. o Theincreaseinintermittent,renewablebasedpowergenerationintheelectricgridis changingthetraditionalbaseloadroleofcoalfiredpowerplants.Redefiningtheroleof coalplantsasanenablerforrenewableenergymaychangeboththepublicperceptionand economicsofcoalfiredgeneration. o Ownersandoperatorsofcoalfiredpowerplantsneedtorethinktheroleofefficiencyin plantoperationsandtheclimatedebate.Managementresistancetochangeisseenasa majorinhibitortoimprovedthermalefficiency. Efficiencyimprovementscanberiskytooperators. o Anyunplannedoutageorextendedplantdowntimetoaccommodateanefficiencyproject hasthepotentialtoeraseanyfuelcostsavingsachieved.However,someimprovements suchasaddingsensorsorsupplementalcontrolscanbeeasilyaccommodatedduring normaloutages.Technicaluncertaintyofprojectsneedstobeminimizedtoensurethere willbenounexpecteddisruptionstopowerproduction. o CapitalprojectsthathavethepotentialtotriggeraNewSourceReviewaredeemedtobe veryrisky.Betterclarity,andpotentiallyguarantees,areneededonwhatupgradeswillnot triggerNSR. o Vagariesofeachsitepreventvendorsfrombeingabletoguaranteeresults. o Uncertaintyregardingfutureclimatelegislation/regulationmayinhibitcurrentefficiency projectsbecauseplantemissionlevelscouldbebaselinedafterimprovementsaremade, therebypenalizingutilitiesthatproactivelypursueefficiencyimprovements. Thepowerindustryisunlikelytochampionanationalefficiencyinitiative. o Althoughrepresentativesfromutilitiesandvendorsareknowledgeableaboutefficiency improvements,itisnotamanagementpriority.Reductioninstaff,shrinkingO&Mbudgets, andlimitedaccesstocapitalwillmakeitdifficultforownersandoperatorstotakeon ambitiousefficiencyprojects. o Powerproducersmayviewcoalplantsascashcowstofundexcursionsintootherpower optionsincludingnuclear,renewable,andsmartgrid. o BothFederalandStatelevelleadership,support,andincentiveswillbeneededtoenable thepowerindustrytoachievethe36%efficiencyvision.
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NextSteps
Workshopparticipantsdidmorethanjustidentifyopportunitiesforandchallengestoimproving thermalefficiency.Theyalsodevelopedaninitialsetofdistinctinitiativesthatcanbepursuedby governmentandindustrytoputmanyofthesepromisingideasintoaction.Inall,11initiativeswere developedthatdescribethecoreconcept,identifyimplementationsteps,estimatebenefits,clarifyroles ofgovernmentandindustry,andoutlinenextsteps.Whilemoreworkisneeded,eachofthese initiatives,includedinthesectionsthatfollow,representsthekernelofanewideatoincreaseefficiency andreducecarbonemissions. DOEplanstousetheresultsoftheBaltimoreandChicagoworkshops,ongoingtechnicalanalysisof efficiencyopportunitieswithinthecoalfiredfleet,andadditionalstudiestodevelopacomprehensive strategyforcapitalizingonthermalefficiencyimprovements.
HowtoReadThisReport
Theresultsthatfollowarebasedonthecollectiveinsightsofworkshopparticipantsthatweregenerated duringbreakoutgroupdiscussions.Eachofthethreebreakoutgroupswasgiventhefollowingtasks: Exploretechnicalopportunitiestoimprovethethermalefficiencyofexistingcoalfiredpower plants, Identifythebarriersandchallengesthatinhibitimplementationoftheseopportunities,and Identifyspecificinitiativesthatcansubstantiallyincreaseefficiencyacrossthefleet.
Thecontentofthetextandtablesthatfollowisbasedonthecontributionofindividualparticipantsand donotnecessarilyrepresentaconsensusviewofthegroup.Thefacilitatorsencouragedopendialogue andsystematicallydocumentedideasandinsightswithoutattribution.Participantsweregivenan opportunitytoidentify:(a)thetechnicaloptionsheorshefeltwouldhavethehighestimpactonpower plantefficiencyandbethemostapplicableacrossallcoalfiredpowerplants;and(b)whichbarriers& challengesandpotentialinitiativesweremostimportant(seetablesbelowfordetails).Optionsthat receivedbroadagreementwithineachbreakoutgrouparehighlightedinthenarrativeofthethree SummaryResultssectionsthatfollow.
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SummaryResultsGroupA
Participants
ScottAffelt CharlieBullinger ThamaraiP.Chelvan TomFogarty DavidHopkinson EdLevy GeorgeMues KarenObenshain KarenPalmer ScottStallard JosephStrakey BarryRederstorff ZoloTechnologies,Inc. GreatRiverEnergy SiemensEnergy,Inc. PNTEnergy U.S.DepartmentofEnergy LehighUniversityEnergyResearchCenter AmerenCorporation EdisonElectricInstitute ResourcesfortheFuture Black&Veatch NationalEnergyTechnologyLaboratory AmericanElectricPower
Facilitators
JackEisenhauerandLindsayKishter
TechnicalOptionstoIncreaseThermalEfficiency
Plantoperatorscanimplementarobustvarietyofcurrentlyavailable,costeffectivesolutionsto improveplantheatratethroughimprovedprocesses,tighteroperations,andbetterandmoretargeted maintenance.Withsufficientcapital,anevenlargertoolboxisavailabletoenableefficiency improvements.Keytechnicaloptionsavailableincludethefollowing: Trainingafleetoftheplantsworkerstoidentifyinefficienciesandrecognizeopportunitiesfor improvementwillhavealargeimpactandwillhelputilitiestoprioritizethermalefficiency options.Betteryet,adedicatedplantefficiencyengineerwillreducetheburdenonother workersandspeedefficiencyimprovements. Reducingleakageintheair,water,steam,andfluegasflowsbyrestoringandreplacingseals offersoneofthemostpromisingopportunitiesforimprovedefficiency. Withoutmajorcapital,processoptimizationacrosstheplantcanoffersignificantefficiency improvements.Improvingaplantsabilitytomeasure,monitor,andanalyzesystemprocesses willenableplantoperatorstoidentifyopportunitiesforefficiencyimprovementsor maintenanceneedsthatwouldpreventdegradationandfutureinefficiencies.Implementing advancedsensorsandcontrolswillyieldthisvaluableinformationandprovideopportunitiesfor improvement.However,uniform,reliablemeasurementprocessesandstandardsthatare supportedbyadequatetoolsarenotyetavailabletosupportrealtimemonitoringofplantheat rate. Operationalimprovementsalsopresentopportunitiestoincreaseefficiency.Betterairhandling throughwasteheatoptimizationandbetterfuelhandling,suchasincreasingcoalfineness,are keyexamples. Asefficiencywillalwaysbedictatedbytheplantsexistingequipment,thebiggestpotential gainscancomefromupgradingmajorsystems.Upgradingtheturbinesystemsbyreplacing bladesandsealsandupgradingthesteamsystemthroughamajorretrofitofboilerswouldhave asignificantimpactonplantefficiency.
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BarrierstoImplementationofTechnicalOptions
Plantownersarefacedwithvarioustechnical,regulatory,andmarketconstraintsthatinhibitthe adoptionoftechnicalsolutionstoboostefficiency.Forexample,energyefficiencyisoftennotapriority forbaseloadcoalplantsandisnotimbeddedinthecorporateculture.Thecosts,risks,andpayoffsof efficiencyimprovementscanbeuncertain,furtherdiscouraginginvestment.Keybarrierstothe implementationoftechnicaloptionsincludethefollowing: Powerplantefficiencyprojectslacktheincentives,subsidies,andoverarchingpoliticaland publicsupportthatcleanandrenewableenergyinitiativeshaveenjoyedinrecentlegislation, includingtheAmericanRecoveryandReinvestmentAct.Withoutagovernmentmandatefor efficiencyimprovementsandassociatedfinancialincentives,itisdifficultformanagerstoinvest scarecapitalinefficiencyupgrades.Efficiencyinitiativesmaynotofferbetterpaybackthan competingplantprojects,yetmaybedeemedmoreriskyanddisruptivetooperations. Plantoperatorsoftenlacksufficientmonitoringtoolsormeasurementframeworkstomeasure bothbaselinesandfutureimprovementsforagivenprocess.Withoutadvancedsensorsand monitoringtools,operatorsfinditdifficulttoaccuratelymeasurecurrentprocesses,identify specificareaswhereupgradescouldimproveefficiency,andmeasureandcommunicate progress.Theindustryalsolacksclearguidelinesandstandardsformeasuringandreporting efficiencyimprovements. WiththepossibilityofCO2regulationsandthedevelopmentofanationalenergypolicyonthe horizon,plantownersmayfacerequirementsinthenearterm,yettheycurrentlyhavelittle certaintyaboutwhatthosefuturerequirementsmightbe.Becauseofthis,ownersarehesitant toinvestinefficiencyprojectsthatmaynotbeeconomicallyprudentoncenewrequirements comeintoeffect.Ownersarealsohesitanttomakelargescale,costlyefficiencyimprovements thatcouldthenbesetasabaselineinneartermlegislation,effectivelypenalizingproactive plants. UncertaintyaboutmakingplantchangesthatmighttriggeraNewSourceReviewhashampered someefficiencyinitiatives.UtilitiesoftenerronthesideofcautionwheninterpretingtheNSR regulationsandavoidcertainefficiencyprojectswiththebeliefthattheymayhavetheirpermits calledintoquestion. Everyplantstopoperationalconcernsareavailabilityandreliability,andthetopregulatory concernisenvironmentalcompliance;efficiencyisasecondaryconcern.Assuch,mostplants, especiallysmallerones,donothavededicatedperformanceengineerstrainedtoidentify opportunitiesforefficiencyimprovementsandimplementupgrades.
ProposedInitiatives
BreakoutGroupAselectedfourinitiativesthatgovernmentandindustrycouldimplementintheshort termtoaddressthemajorbarriers.
FederallySupportedCertifiedPerformanceEngineer
Havingadedicated,onsiteperformanceengineerwillenableeachfacilitytofocusonimproving thermalefficiencyandfullyexploittherangeoftechnicaloptionsavailabletothefacility.Currently, thereislittleincentivetoinvestinsuchapositionbecausefuelcostssavingsrarelybenefittheutility duetoutilityratestructures.Thisinitiativecreatesamonetaryincentiveforutilitiestocoverthecostof acertifiedperformanceengineerwhilepassingenergycostsavingsontotheratepayers.

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UnderstandingEfficiencyGainsTriggeredbyCarbonTaxes
Acarbontaxwouldlikelytriggerefficiencyprojectsatcoalfiredpowerplants,butthereislittleevidence aboutwhattypesofefficiencygainswouldberealizedatdifferentcarbonprices.Thisinitiativeseeksto betterunderstandtheexpectedefficiencygainsatvariouscarbonpricesthroughcomprehensive analysisusingrealplantdata.Theanalysiswouldprovidethenecessaryinformationtopolicymakersto makeinformedchoices.Thisinitiativeproposesastudythatbuildsonresponsecurveanalysisat individualutilitiestobettercalculatetheefficiencygainsthatcarbontaxeswouldlikelytriggeracross thefleet.
CreateCertaintyAroundCO2BaselineandBACT
Thisinitiativeestablishespermitcertaintyforplantownerswhoenteravoluntaryagreementinwhich theycommittoefficiencyimprovements.Participatingplantswillworkwithgovernmentagenciesto determinetheirCO2baselineandestablishenergyefficiencyasthebestavailablecurrenttechnology (BACT).Plantswillagreetomeetanefficiencyimprovementfromtheestablishedbaseline.
DevelopaFrameworkforMeasuringandSustainingImprovements
Establishingaframeworkforaccuratelymeasuringefficiencyimprovementsandmandatingthatthe performancedataissharedonanationallevelcreatesindirectcompetitionamongplantsandprovides anincentiveforthermalefficiencyimprovements.Thisinitiativesetsastandardformeasuringboth baselineandactualperformance(inordertocalculatethedifference),anddevelopsaclearguidelinefor bestprocessoptimizationthatgivesplantownersrationalexpectedtargetsforefficiencyimprovements.
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RawResultsGroupA GROUPA TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(1OF2)

Process
Trainingworkersinbestpractices Processoptimization Improveinformationandmonitoringof performance Employdedicatedplantefficiencyengineer Implementationofadvancedsensorsand controls Tuningofallcontrols(measurecorrect) Cycleoptimization Steamcycleadjustmentsinextraction flows,monitoringispartofgood preventivemaintenance Analyticstorevealheatratedeviationsinreal time Loadcyclingstartupandrampingcontrols Steamcycleisolation ForboilerefficiencyuselatestPTC4notPTC 4.1 Firingsystembalancingburners,system optimizationandreducingturbinefilter Boilerwaterblowdownrecovery
Operations
Reducefluegasexittemperatureanduseheat topreheatboiler Improvesootblowingequipment Optimizeplantoperationtomatchfuelquality andprovideconsistency Increasecoalfinenesstominimizeunburned carbon Automatedboilerdrains Getdowntoonecompressor(toreduce leakage) Useonlyonecirculatingwaterpump Instrumentationcalibration Slidingpressureonboiler Reduceexcessair Improvesteamtemperaturecontrolto operateatoptimumtemperatureandreduce degradation Increasehydrogenpurity Fuelswitch Waterchemistry Raiseboilertemperature
Maintenance
Air,water,steam,fluegasleakagereduction Reduceairheaterleakageswithbetterseals Increasingmaintenancetoarrestdegradation PDMprograms(maintenance) Restoringturbineseals Ultrasoniccheckingaroundthecompressor Eliminateboilerairinfiltration Removing/preventingdepositsonturbine blades Coolingtowerfillreplacement
Bestnoncapital Bestwithcapital
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GROUPA TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(2OF2)
Capital
Optimizeregenerativeairheaterorairpre heaterandrightsizereplacements(+ density) Improvesefficiency,increasesair temperature,reducesleakages Deeplakewaterintakeratherthansurface water Lightingupgrades Condenserupgrades:retubingcondensers, circulatingwaterstrainers,condenser cleaning Addcoolingtowercapacity Lowersbackpressure,allowsyouto generatemorepower Materialcoatingsongasside Replacementofolderenvironmentalcontrols withnewermoreefficientones Powersupplyupgradesandprecipitators Millupgrades Partialarcemission(steam)toreduce throttlinglosses Advancedmaterialupgradesonsteamsideto increasetemperature
MajorCapital
Upgradeturbines Replacingblades,seals Predry/prebeneficiationofcoal Lowpressuresteamsalestonearestindustry Sitespecificandsteamqualityspecific Usingsolarenergyforfeedwaterheaters Circulatingwaterdischargeturbine Condensingheatexchangers Exhausthoodsteamguidestodirectflowof steamandcutlosses Adjustablespeeddrivesforlargemotors
SeriousCapital
Repowering(majorretrofitofboilers) GoingfromsubtosupercriticaladdingO2 insteadofair,puttingingasifier,adding solar,etc. Hotwindboxwithgasturbine(gasturbine exhaustingintowindbox) Redesignheattransferpressureparts Byboilermanufactureror3rdparty Retrofitwithoxyfuelcombustioninplaceofair fuelcombustion
Bestnoncapital Bestwithcapital
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GROUPA BARRIERSANDCHALLENGESTHATINHIBITTHEADOPTIONANDAPPLICATIONOFTECHNICALOPTIONS(1OF2)
TechnicalConstraints
Difficulttoaccuratelymeasureimprovements Lackofinformationordatatomakeadecision Designconstraintsofexistingequipment Unitagelimitsoptions Manysolutionsarenotapplicableacrossall plants Auxiliarypowerthathasbeenaddedbecause ofairqualitycontrol
CostsandPayoffs
Competingprojectsmayhavebetterpayback (hurdlerate) Scarceavailabilityofcapitallimitsinvestments Managersdontgetgoodreturnforefficiency investments Uncertaintyaroundthecostsandbenefitsofa givenproposal Especially1stofakindor2ndofakind Capacityfactor Budgetforrequiredenvironmentalcompliance reducesbudgetsavailableforefficiency improvement
RegulatoryandMarket Constraints
Lackincentives/subsidy/supportforgeneration efficiency UncertaintyaboutCO2regulations(whatand when) avoidbaselineafterimprovementsare made Possibility(uncertainty)aboutanational energypolicy Futureroleoftheplant:baseload,backstop, etc. Energypriceuncertaintythataffectsthe cost/benefitofaproject Uncertaintyaboutrecoveringcapitalcostfor regulatedcompany Norequirementforefficiencyimprovements fromgovernmentagencies Fuelswitchinreversehardtogoback Fueladjustmentcost NSR
Mostimportant
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GROUPA BARRIERSANDCHALLENGESTHATINHIBITTHEADOPTIONANDAPPLICATIONOFTECHNICALOPTIONS(2OF2)
ManagementPriorities/CorporateCulture
Focusonavailabilityandreliabilityinsteadof efficiency Focusonbottomlineratherthanlongterm Frequencyofoutagesandtimebetween outages(6yearsbetween) Companyculturenotconducivetoefficiency Followingusualprocedureratherthannew approaches Shortplannedoutagetimeformaking improvements Lackofsupportfrominternalorganization Mentalityofcheap,shorttermratherthan longterm
KnowledgeandTrainingofPlantEmployees
Lackoftrainingofplantoperatorsand performanceengineers Nodedicatedtrainedindividualtoimplement improvements Nothavingenoughpeopletoinstall Lackofknowledgeofsmallerthingsplantscan improvethatdonotrequiremajorcapital
CommonPerceptions
Publicperceptionsaboutplantlifeexpectancy Generationefficiencyisnotseenasbeingon parwithrenewableswithinthepublicand government PerceivednotionofwhatwilltriggeraNew SourceReview Fearthatallpermitscalledintoquestion
Mostimportant
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GROUPA POTENTIALINITIATIVES
Frameworkforsustaining(andmeasuring)improvements Fundaresearchprogramtodevelopstandardsforaccuratelymeasuringenergyefficiency Developclearindustrystandardsforbestprocessoptimization Makemoreheatratedataavailableonthenationallevel Providefuturepermitcertaintyifplantsagreetomeetanefficiencystandard Fundfederalperformanceengineercertification Developtrainingprograminbestpracticesforplantoperatorsandmaintenance Understandwhichefficiencyprojectsaretriggeredbyvariouslevelsofcarbontaxes EngagestatePUCsindiscussionsaboutgreateruseofpricecapsorsharedsavingsregulation Improvetransmissionsystemtoenabletheretirementofolder,inefficientunits Treatgenerationefficiencythesameasrenewables,demandsidemanagement,otheralternativesforstimulusfundingandenergyportfolio Makecapitalavailablebyproviding0%loansforpowerplantefficiencyprojects Providetaxcredittofixhurdlerate Offertaxincentivesformeasurableefficiencyimprovements Demystifyroleofcoal PreapproveprojectsthatdonottriggerNSR,(example:turbineupgradedoesnotraiseemissions)
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GROUPA INITIATIVES(1OF4)
FederallySupportedCertifiedPerformanceEngineer
DescriptionandKeyFeatures Havingadedicated,onsiteperformanceengineerwillenableeachfacilitytofocusonimproving thermalefficiencyandfullyexploittherangeoftechnicaloptionsavailabletothefacility.Currently, thereislittleincentivetoinvestinsuchapositionbecausefuelcostssavingsrarelybenefittheutility duetoutilityratestructures.Thisinitiativecreatesamonetaryincentiveforutilitiestocoverthecostof acertifiedperformanceengineerwhilepassingenergycostsavingsontotheratepayers.
Focusesattentiononefficiencyimprovement Statesmaybeimpressedatratetimewhichwillbeanadvantage Performanceengineerfollowssomebestpracticeguidelines Someaccountingfortimewillbeneeded Canbeimplementedwithorwithoutverificationofheatrateimprovement Focusonimprovementthensustainment Needtoavoidtheperformanceengineerfocusingonmaintenance Greenjobcreation $savingspassedtoratepayersbutmonetaryincentivegoestoutility Activitybasedperformance
ImplementationSteps
Createrequirementsforprogram Bestpracticesitems/checklist Providetrainingandcertification Monitorandreportheatrate Annualconferenceofengineers Annualcertification/sanitycheck Worktowardverificationofheatrateimprovements
RolesforGovernment
Makefunding/incentiveavailable Developrequirementsforcertification Hostannualconference
RolesforIndustry/Others
Verifyingbodythirdparty Plants Participate Collectdata&report Implementation
EstimatedImpact(Metrics)
Upto1%improvementperplant(unit) 1%@500MW~$0.5msavings Targetthe300stationswithaunit>150MW Highuptakeexpected
NextSteps
Identifythetypeofincentiveneeded Discusswithplants Whatisthebestdeliverymechanism
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UnderstandingEfficiencyGainsTriggeredbyCarbonTaxes
DescriptionandKeyFeatures Acarbontaxwouldlikelytriggerefficiencyprojectsatcoalfiredpowerplants,butthereislittle evidenceaboutwhattypesofefficiencygainswouldberealizedatdifferentcarbonprices.Thisinitiative seekstobetterunderstandtheexpectedefficiencygainsatvariouscarbonpricesthrough comprehensiveanalysisusingrealplantdata.Theanalysiswouldprovidethenecessaryinformationto policymakerstomakeinformedchoices.Thisinitiativeproposesastudythatbuildsonresponsecurve analysisatindividualutilitiestobettercalculatetheefficiencygainsthatcarbontaxeswouldlikely triggeracrossthefleet.
BuiltonrealplantdataandextendsexistingEPRIwork Requirescredibilityandtransparency
ImplementationSteps
BuildonEPRIsresponsecurveanalysisatindividualutilities Hirepeopletohelpimplementandmaintainconsistency Buildaggregateresponsecurve PlugresultsintoICForothermodeltounderstandmacroeffects Understandenablers Buildthecaseforpolicyaudience Communicateanalysis
RolesforGovernment
Costshareanalysis Manage/championtheeffort Fundteamofefficiencyexpertstogointoplants Communicateinformation(possiblyEPRI)
Utilitieswouldparticipateinmeasuringplant informationdevelopbudgetforgatheringdata Vendorsprovidecostinformationtohelpguide projectcost/benefit
Nodirectimpact Informdecisionsaboutcarbontaxes Showsbenefitatvarious$/ton
NextSteps
WorkwithEPRItocreateplantassessmentguideline
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CreateCertaintyAroundCO2BaselineandBACT
DescriptionandKeyFeatures Thisinitiativeestablishespermitcertaintyforplantownerswhoenteravoluntaryagreementinwhich theycommittoefficiencyimprovements.Participatingplantswillworkwithgovernmentagenciesto determinetheirCO2baselineandestablishenergyefficiencyasthebestavailablecurrenttechnology (BACT).Plantswillagreetomeetanefficiencyimprovementfromtheestablishedbaseline.
Plantsarepotentiallystillexposedtolegislation,butthisgetsridofsomevariables Plantsreceivepositivepublicperceptionforactingearlyonefficiencyimprovements ThedefinitionofBACT=efficiencyimprovements Plantsstillsubjecttofuturecapandtradethatmightmakefutureupgradescosteffective Voluntaryprogramdealearlyanddealfast Nolegislationrequired
ImplementationSteps
Utilityestablishesefficiencyprogramfortheunitthatpromisesanefficiencyimprovementoffthebaseline ~2yearstoimplementthissteprequiresmoreaccuratemeasurements,whichcouldbeachievedby enactingtheinitiativeDevelopaFrameworkforMeasuringandSustainingImprovements EPAsetsbaselineCO2andBACT
RolesforGovernment
Figureoutifthisislegallyfeasible DOEandEPAworkoutagreement Determinewhatagencygoalsare;ifgoalsaretoshut downcoalplants,theywontimplementthis program
Developandsubmitefficiencyprogramsfortheir units
>50%willparticipate(conservativeestimate) 1%improvement IfCO2reaches$100/ton,maybe5% improvement IfCO2reaches$30/ton,2%improvement
NextSteps
DOEandEPAstartdiscussionstoseeifthereisadeal thatcanbemade
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DevelopaFrameworkforMeasuringandSustainingImprovements
DescriptionandKeyFeatures Establishingaframeworkforaccuratelymeasuringefficiencyimprovementsandmandatingthatthe performancedataissharedonanationallevelcreatesindirectcompetitionamongplantsandprovides anincentiveforthermalefficiencyimprovements.Thisinitiativesetsastandardformeasuringboth baselineandactualperformance(inordertocalculatethedifference),anddevelopsaclearguidelinefor bestprocessoptimizationthatgivesplantownersrationalexpectedtargetsforefficiency improvements.
Givesplantownersabasistocomparetheirplanttootherplants Enablescapabilitytodiscoverthesourceofinefficienciesatagenerallevel Deliversabestpracticeforhowtooptimize
ImplementationSteps
TakePTC4.1asabasisandrefine,thendevelopprotocoltocontinuallyupdatebaselinetoasisconditions Developclearguideline/calculationframeworkforbestprocessoptimization,establishingrationalexpected targetsforplant Establishmeanstoshareperformanceinformationonanationallevel
RolesforGovernment
Mandatethatdataiscollectedandreported Setupanddriveprogram
Helpdevelopprotocols Useframeworktocollectandreportdata
Enablerofefficiencyimprovements Greaterawarenessofnationalperformancedata createsindirectcompetitionandincentivefor improvements
NextSteps
Takeinterestedindividualsfromindustryand governmenttodevelopworkinggroupsandbegin workonprotocols Betterdefineroles Findmoneytofundtheprogram
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SummaryResultsGroupB
Participants
RonBreault JeffreyEppink BobGiglio StanKaplan SikanderKhan NewtonF.Logan JamesNyenhuis ColinOBrien SherryOdom WilliamPott DarleneRadcliffe DonaldE.Ryan BobSeay JeffStallings NationalEnergyTechnologyLaboratory Enegis,LLC FosterWheelerGlobalPowerGroup CongressionalResearchService DepartmentofEnergy ZoloTechnologies,Inc. EmersonProcessManagement NaturalResourcesDefenseCouncil GEEnergy BoozAllenHamilton DukeEnergy TheBabcock&WilcoxCompany WorleyParsonsGroup,Inc. ElectricPowerResearchInstitute
Facilitators
RossBrindleandAmandaGreene
Broadopportunitiesforefficiencyimprovementsexist,includingoperationsmanagement,maintenance, newtechnologies,fuelissues,measurementsandcontrols,processimprovementsandcapital equipmentupgrades,andhumanfactors.Approximatelyhalfoftherecommendationsinvolvetechnical improvementsthatrequirecapitalexpendituresand/orinvestmentinsomelevelofR&D.Optionsthat wouldprovidethehighestvalueincludethefollowing: Thereisanurgentneedfortechnologythatcanconductonlinerealtimemeasurementof efficiency.Becauseanaccuraterealtimemeasurementofheatrateisverydifficultand expensive,itmayrequirethedevelopmentofanewstandardefficiencymetric,suchas CO2/MWh(insteadofheatrate),whichwillnotonlyallowforrealtimetrackingofefficiency withinacoalplant,butwillenableefficiencycomparisonsamongdifferentcoalplantsand acrossdifferentpowergenerationtechnologies. Upgradingpowerplantequipmentisneededtoreclaimsomeoftheefficiencylossesassociated withagingpowerplants.Steamturbineupgradepackagesinparticular(e.g.,densepack turbines,increasedexhaustareas,sealredesigns)canprovidesignificantefficiency improvements.Alsohighlyrecommendedisinstallingvariablespeedmotorsandacquiring equipmentthatcanhelplowerstacktemperatures,suchasplasticheatexchangers. Thereissignificantpotentialformodelingsoftwaretocontributetoefficiencyimprovementsin powerplants.Forexample,3Dmodelingoftheburner/boilerprocesscouldhelptoreduce unburnedcarbonlossandbalancetheairflowandburnoffiring.Thereisalsoaneedforthe developmentanduseofneuralnetworksoptimizationschemesoftware.Processoptimization, inadditiontobeingperformedforindividualunits,couldbedoneatahigherlevel,takinginto considerationtheinterrelationsacrossdifferentenvironmentalcontrolsystems.
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Largequantitiesofheatarewastedatpowerplantsandthereisanopportunitytoimproveheat recovery.Whilesomeamountofheatlossisinevitable,muchoftheheatcouldberecoveredfor additionalpowerandheatforplantoperationsasand/orfordistrictheating.
Lesstechnicaloptions,suchasbehavioralandfunctionalchangesamongstaffandimprovementsinday todayoperationsandmaintenanceproceduresrequiringlesscapitalinvestments,alsopresent promisingefficiencyimprovements: Propermaintenancepracticessuchasreplacingsealsonallunitoperationsandcleaning condensertubeswillhelptoreclaimthenaturalefficiencylossesthatoccurinpowerplantsas theyageandcomponentsdegrade.Additionally,regularmaintenanceshouldbeperformedto calibrateinstrumentation,reducesteamleaks,andminimizecondenserbackpressure. Properlytrainedandincentivizedstaffisessentialforefficientplantoperations.Inadditionto hiringwelltrainedperformanceengineers,itiscriticaltocreateincentivesforcurrentoperator teamstoachieveheatratetargets.Powerplantoperationswouldparticularlybenefitfromthe creationofaheatratechampionroleatthecorporatelevel. Optimizingthefuelqualitytoreducethemoisturecontentoffuelisanotherrelativelysimple andcosteffectivewaytoimprovecombustionefficiencyatcoalfiredpowerplants.
Themajorityofthehighvaluesolutionslistedabovewerealsodeemedtobeapplicableacrossawide rangeofplants,withtheexceptionofimprovedfuelmanagementpractices.
Numerousbarrierstoimplementingthermalefficiencyimprovementsincoalfiredpowerplantsexist. Themajority,however,directlyorindirectlyrelatetothelackofabusinesscase(fromtheperspectiveof powerplantowners)forbothcapitalinvestmentsinefficiencyimprovementsandtheimplementation ofoperationalchangesthatgoalongwithnewtechnologyandnewprocesses.Keybarriersthat contributetothisissue,includinglackofbusinessincentives,uncertainpolicies,technologyrisk,and organizationalissues,aredetailedbelow: Economicincentivesforcoalpowerplantownersandoperatorstoimproveefficiencyare lacking.Whatbusinesscasedoesexistforefficiencyimprovementsiscounteractedbyprevalent financialdisincentives. o Thepowermarketrewardspowergeneratorsforavailabilityandreliability,notefficiency. o Currently,manyutilitiespass100%ofthefuelcosts(orsavings)toconsumers,giving operatorslittleincentivetoreducefuelcosts. o Thepaybacktimerequiredbyregulatedutilitiesisshort,whichpreventslongerterm investmentsfrombeingmadeandprecludesrisktakingbyowner/operators. o Thereareuncertaintiessurroundingwhethercapitalinvestmentswillbeallowedintothe ratebaseandabouttherequirementsforfullcommitmentguaranteesbybanks. o Powerproductiondoesnotcaptureallcostsexternalitiesassociatedwiththehighcarbon contentofcoal. Thepowersectorcurrentlyreceivesmixedandconfusingpolicysignals.Insuchanuncertain policyenvironment,owner/operatorsfinditdifficulttopredictregulationsandfacethe possibilitythatmakingefficiencyimprovementscouldprovokefurtherregulation.Thisresultsin increasedriskformakingimprovements. o DifferentdefinitionsandvaluationsofCO2reductionsappeartobeinconsistentamong energysources.
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o Cleanenergyprogramsdonotrecognizeorrewardefficiencyimprovementsfromcoal plants;efficiencyincentives(e.g.,taxcredits)thatdoexistfocusonconsumers,notpower generators. NewSourceReviewtriggersareoftenunclear,andtheoutcomescanvaryunderdifferent administrations,byregionaloffices,andbytheparticularcourthearingthecase.
Itisdifficulttomakeabusinesscaseforadoptingnewtechnologywhentheefficiencygainsare hardtomeasure(industrydoesnotuseCO2/MWhasameasureofefficiency).Thiscontributes touncertaintiesintherelativebenefitsandcostsofnewtechnologiesaswellasunexpected impactsandconsequences. o Thereislittleunderstandingofthesideeffectsandpotentialrisksoftechnologyupgrades, includingoperational,environmental,andsafetyrelatedimpacts.Salespeoplefrom vendorcompaniesareoftennottechnicalexpertsanddonotunderstandtherisksand coststhemselves.Thiscanresultinhiddencostsforowner/operatorswhenimplementing newtechnologies.
Evenwhenefficiencyimprovementsarecosteffective(orpotentiallyso),theycanbedifficultto implementduetointernaloperationalandhumanresourcelimitations. o Thereisalackofengineeringtalenttoevaluateeachplantbeforechoosingwhichoptions topursue,andalackoftimeandresourcestocarryoutefficiencyprojects. o Someoperatorsareresistanttoanychange,whetheritisanewtechnologyoranew person(e.g.,heatratechampion). o Heatrateprojectshavehistoricallybeenunsustainable.Heatratehasabadconnotation amongplantmanagers,partlyduetothedifficultyinmeasuringit. o Thereisahistoriclackofconsistencyamongleadershipatutilitieswhooftendonothavea technicalunderstandingoftheplantandhaveshorttermviews. Twoadditionaltypesofbarrierswereidentifiedthat,althoughtheyalsoimpactowner/operatorsand theirdecisiontomakeefficiencyimprovements,canbeviewedasissuesmorecloselyassociatedwith thetechnologysupplier(upstream)andendusecustomer(downstream)partsoftheenergysector supplychain. Commercializationchallengesarefacedbyvendorsandmanufacturersofnewtechnology, whichinhibitsordelaysitsavailabilitytoowner/operators. o ThecurrenttechnologyRD&Dpathdoesnotprovideenoughsupportforstartup companies,vendorsandmanufacturersofnewefficiencytechnologiestogotomarketon largescales(i.e.,550MWdemonstrations).Thegovernmentoftenfundstoacertain pointinthetechnologydevelopmentpathwayandthenstops.Greattechnologiesdie becauseofthistechnologydeploymentabyss. o Technologysuppliersoftengetsqueezedinfederallyfundeddemonstrationprojects. Governmentcostsharestosupporttechnologydevelopmentaregrantedtotheutilities, whointurnexpectthesuppliertogivefullcommercialguaranteesforthesenew technologies. Publicperceptionsandmisperceptionsfurtherexacerbatethechallengesofincentivizingthe efficiencyimprovementsdiscussedaboveand,inparticular,inhibitsbeneficialpolicychanges. o Thereisstrongconsumerresistancetoincreasesinpowerprices. o Thereisalackofeducationamongthepublicaboutthecarbonreductionparityconcept, leadingtoabiastowardsCO2reductionsfromrenewablesoverreductionsfrompower plantefficiencyimprovements.
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ProposedInitiatives
CreateCommonandAccurateDefinitionandStandardforMeasuringEfficiencyinRealTime
Awelldefinedefficiencymetricwillenabletheachievementofrealtimeefficiencymeasurements,and willhelptoaddressinconsistentandconfusingnationalandstatepoliciesoncarbonreductionandclean energy.Currentlythereisnoconsistentstandardformeasuringthermalefficiency.Technologiesexist todayformeasuringheatrate,buttheyareexpensive,requirehumanresourcestocontinuallymonitor them,andonlymeasuresurfaceattributes.Inadditiontoenablingrealtimemonitoring,the standardizedefficiencymetricshouldbedevelopedtoallowthermalefficiencyimprovementsincoal plantstobecomparedtootherpowergenerationtechnologies.Thiswillhelppavethewayforsuch efficiencyimprovementstoqualifyunderfederalandstatecleanenergy/lowcarbonincentive programs.
IncentivizeIndustrytoPursueEfficiencyImprovements
Theoverarchingchallengetoimplementingefficiencyimprovementsincoalplantsisthelackofa businesscaseforowner/operatorsofpowerplants.Buildingabusinesscaseforindustryisbroad initiativeandinvolvesamyriadofpotentialactionsonthepathtowardsitsachievement.Twomajor featuresinclude: Theinclusionofexternalitiesinfinancialdecisionsthrough,forexample,apriceoncarbon(e.g. carbontax,capandtradeprogram);paritybetweenefficiencyimprovementsandotherclean energytechnologyunderRPSand/orothercarbonreductionpolicies;andtheeducationofthe publicthatapoundofCO2reducedisapoundofCO2reduced,nomatterwhatthesource. Makingchangestofederalandstateregulationssuchthatcostsandsavings(e.g.,fuelcosts)are sharedbetweenutilitiesandconsumers(insteadofpassing100%throughtoconsumer).
EducationandPromotionofGenerationEfficiency
Thepublicdoesnotcurrentlyvaluecarbonreductionsfromefficiencyimprovementsinpowerplantsthe wayitvaluesthesamereductionsfrom,forexample,solarandwindpower.Itisimportantforthe publictounderstandthatapoundofCO2reducedisapoundofCO2reduced,nomatterwhereitcomes fromorhowitisdone.Educatingthepublicwillfurtherpushpublicpolicytowardtreatingefficiency improvementsasanequallysignificantandbeneficialoptionforreducingCO2,whichshouldreceivethe sameincentivesasothermethodsofreducingCO2.
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RawResultsGroupB
GROUPB TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(1OF2)
Operations management
Balance/optimize combustionprocess, includingduring ramping(e.g.balance airflow Adheretobestpractices withregardsto operationsandbusiness planning Avoidderatingunitin eveningtoshedslag Optimizeandintegrate acrossenvironmental controlsystems(not justinsingleunit) Optimizedispatchto minimizeramping Updatedispatchdata moreregularly(>13 yrs);needrealtime data.(Gridlevel improvement)
NewTechnologies
Usesolarthermalto improvefeedwater heater Addbottomingcycle (lowtemperature workingfluidsfrom geothermcoupledwith exhaustfromturbines; thentakethrough anothercycle)
FuelIssues
Reducemoisturecontent offuel Usecondenser (wasteheat)stream todryfuel Usefluegas upstreamof scrubber Optimizefuel(tightband tooptimizeboiler operation) Buydifferent/better fuel Blend Dryfine(toreduce moisturecontentof fuel)
HumanFactors
Incentivize($)operator teamtoachieveheatrate targets Assignaheatrate championrole(corporate responsibility) Hireadequatelytrained performanceengineers Provideinformationflow fromoperatorupward (corporateideabox upward) Implementoperator apprenticeships Acquireneededefficiency toreachpriorityofuptime generationand availability/reliability
Measurementand Controls
Conductonlinerealtime measurementofefficiency Onlinefuelanalyzerto characterizefuel inputsatlowercost Mainstreamonline coalmonitoring(to detecttypeofcoal) Update/monitor controllablelosses screensoncontrol systemsforoperators use DevelopaCO2/MWh efficiencystandard/metric (insteadofheatrate)
Highestimpactonefficiency Mostwidelyapplicableacrossall plants
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GROUPB TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(2OF2)
Maintenance
Replaceseals,e.g.onturbines, airheaters,condensers,boilers andtubularcomponents Implement/applybestpractices formaintenance(plantspecific improvement) Minimizecondenserback pressure Reducesteamleaks Lowercondensertemperatureby cleaningcondensertubes annually Maintaininstrumentcalibration Tightenupboilercasingto reduceairleakage Maximizeuseofpredictive maintenancetoavoidoutages andderateevents Conductregularairheater maintenance Removedepositsonturbine blades Controlmillperformance Tuneplantcontrolssystem
ProcessImprovements
Performcombustionoptimization (NCRapplication)3Dviewofboiler process Developneuralnetworks optimizationschemessoftware Improveoperationduringramps Thisisneededmorewith increasedwindgeneration Conductburner/boilermodelingto reduceunburnedcarbonlossCFD Optimizecombustiontoeliminate slagformationandfouling Createinnovativesootblowing schemes Developstandardcontrolsystems forfeedwaterheaterwithDCA DraincoolerapproachDCA
CapitalEquipmentUpgrades
Usevariablespeedmotors Lowerstacktemperature Changethewayfiringisdone Installplasticheatexchangerrightbeforehitsstack(oncleangas side);whengashitsdewpoint. Undertakeairheatermodifications;improve/replaceairheater seals. Usesteamturbineupgradepackages Densepackturbines Increasedexhaustareas Redesignseals ConvertplantstodistrictheatingANDpowerplantstousewasteheat Gofrom30to90%efficient Optimizetheeconomizersurfaceswithairheatersurfaceandfeedwater heater Useaxialversusradialfanblades Reduceoversizingofequipmentthatisdrivenbyreliabilityconcerns Reduceparasitics(FGD)betterdistribution,lowerpressuredrops. Upgradefeedwaterheatertubes Reconfigure/replacecoolingtowerfill Improveenvironmentalcontrolsystems(SCR,FGD,ESP) Retubeboilers(thatweredesignedforbituminouscoalbutareusing todayscoal)inordertorebalanceradiantheat Convertelectricdrivepumpsandfanstosteamdrivenpumps/fans. Useslidingpressurecontrolforloadfollowing.
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GROUPB BARRIERSANDCHALLENGESTHATINHIBITTHEADOPTIONANDAPPLICATIONOFTECHNICALOPTIONS(1OF3)
OrganizationalandCultural
Lackofengineeringtalentneededtoevaluateeachplantbeforechoosingwhichoptionstopursue Wherewillteamscomefrom? Evaluationtakestime,costschangefrombeginningtoend Notenoughengineeringresourcesavailableatnationalscale(changesmadeatplantscale) Unabletoharnessthecurrentengineeringtalent Therearetechnicalchallengesthatrequireexperts Greatengineersatutilitiesbutranksgettingthin Someoperatorsresistanttochangenewtechnologyandnewpeople Culture(inertia)resistancetochange Evenwithincentives,changeisslow Lackoftimeandresourcestoaddresstheseissues Visiblestressatplantspeoplethatremainareoverworked Workforceshrinkage,noexcesscapacity Historicallackofsustainabilityofheatrateprojects Heatratehasabadconnotationamongplantmanagers Hardtomeasureheatrate Lackofconsistencyamongleadershipatutilities Operatinginsilos Shorttermview Nontechnicalmanagers/leaders Lesstrustbetweenplantownersandvendors(thaninEuropewherepowersectorisregulated) Operatorsarenotengagedinimplementationofneuralnetworkscangetresistancefromoperators Buyersbuycoalonspotmarketwithoutregardtooperations Mismatchoncoalburnedvs.designcoal ResistanceinU.S.tolowerstacktemperaturefearofreachingaciddewpoint Europehasbrokenthroughthisfear Gapbetweennew/optimaltechnologyandittakingrootinthecontrolroom Poorinterfaceandaccesstooptimizationsoftwareforoperators Manageableatfloorlevel Oldstoriesaboutwhywecannotdothatlegacy/memory
MarketStructure
Powerproductiondoesnot captureallcosts(doesnot integrateexternalities) Fueldoesnotcostenough; nocosttocarbon Uncertaintythatcapitalwillbe availableandallowedintorate base Requirementsforfull commitmentguaranteesby banks Raisingcapitaldifficult Efficiencyeffortsfocuson consumers(endusers) Utilitiescannotmakemoney (asenduserscontrol demandside) Distancebetweenpowerand steammarketsinhibitsdistrict heating Notcosteffective(notfinancially justifiedordriven)*
*Fundamentalbarriersagreedtobetoppriorities,butnotvotedon. Mostimportant
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Incentives$
Marketdoesnotpayutilitiesforefficiency Marketpaysforreliabilityandavailability,notefficiency Therearefinancial(regulatory)disincentivesthatcounterbalancethebusinesscasethat doesexist Fuelcostpassthroughdisincentive Otherdisincentives(evenwithoutfuelpassthrough)e.g.,investmentriskofinstallingand usingnewtechnology/equipment Incentivesincompaniesdonotsupportrisktaking Thecoalbuyergetsthebonusforefficiencyimprovements,nottheoperators/plant managers Risk/rewardequationisnotright,benefitsarenotallocatedtotherisktaker Utilitiesoftenhaveveryshorttermpaybackrequirementsthatpreventinvestment Installationcosts(e.g.,ofseals)greaterthantheamountofmoneysavedbydecreasing outagetime Laborcostofinstallationofsealsandoutagecosttoohigh PressuretoreducenonfuelO&Mcosts(FTEs) Deregulationandcompetitiondrivingthis
Consumer/Cultural
Publicresistancetoincreasesinpowerprices Lackofpubliceducationaboutcarbonreductionparity concept PublicfavorsCO2reductionsfromwind,notthose fromcoalefficiency
Mostimportant
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Policy
LackofparityunderRPSschemes(tonCO2from efficiencyisnotequivalenttoatonofCO2from windunderRPSandothergreenenergy incentiveschemes) Lackofcommensurateincentiveslikethose forrenewables Nocreditforunburnedcarbon NewSourceReview(NSR)* Uncertaintysurroundingpotentially triggeringNSR Nofixedsetofrulesforhowonecan triggerNSR Ruleschangeunderdifferent administrationsandbetweendifferent regionaloffices Outcomesdependoncourt CourtsfavorEPAmoretimesthannot
TechnologyRisk
Hardtomakeabusinesscaseforsomethingone cannotmeasure Cannotmeasureefficiency(heatrate) IndustrydoesnotuseCO2/MWhasa measureofefficiency Littleunderstandingofsideeffectsoftechnology upgrades Hiddencosts Densepackturbinessealswillwearas dispatchprofileschange Lackofsharingofallcosts Utilitiestalktovendorssalespeople(notthe technicians)whodonotaccuratelydescribe technicalaspects,risks,sideeffectsandcosts Limitedknowledgeofcosts/benefitsofnew technologiesandassociatedchanges Uncertaintyaroundcoaldrieremissions Biomassburner/boilerfeedisnotdesignedfor efficiency Perceptionsoffuelflammabilityafterdryingreal orperception Dryingcoalisanenvironmentalissue(volatiles andhydrocarbons) Proposalsforequipment/plantsevaluatedby efficiency,butonceinstallednoonecaresabout efficiencyanymore
LackofCommercialStructure
Technologydevelopment/demonstration abyss Governmentfundstocertainpoint, thenstops Newstartupcompaniescannotbring producttoscale(e.g.550MW demonstrations) Greattechnologiesdiebecauseofthis abyss Technologysuppliersgetsqueezedin federallyfundeddemonstrationprojects Utilitiesthatreceivegovernmentcost sharetosupporttechnology developmentexpectsuppliertogive fullcommercialguaranteesforthese newtechnologies
*Fundamentalbarriersagreedtobetoppriorities,butnotvotedon. Mostimportant
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GROUPB POTENTIALINITIATIVES
CreateCommonandAccurate DefinitionandStandardfor MeasuringEfficiencyinReal Time
CO2measurement Continuousrealtime,online testingprocedure.
EducationandPromotionof ImportanceofGeneration efficiency
AccuratelyIncentivizeIndustry toPursueEfficiency Improvements
IncludeExternalitiesinFinancial Decisionmaking*
RPSparity Carbonprice
StateandFederalGovernment Educatepublicthatgeneration considermoresavingssharing efficiencyofcoalisonparwith (e.g.fuelpassthrough)between windintermsofCO2reductions(a poundofCO2savedisapoundof utilityandconsumers CO2savedregardlessofwhere comesfrom) Needclearsignalsfrom government Clearmessagestoconsumers
*Inthesubgroupbreakoutsessionstodevelopmentinitiatives,theIncludeExternalitiesinitiativewasdeterminedtobeakeyfeatureoftheAccuratelyIncentivizeIndustry toPursueEfficiencyImprovementsinitiative.Thus,theyweremergedintoasingleinitiative.
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GROUPB INITIATIVES(1OF3)
CommonandAccurateDefinitionandStandardfor MeasuringEfficiencyinRealTime
DescriptionandKeyFeatures Awelldefinedefficiencymetricwillenabletheachievementofrealtimeefficiencymeasurements,and willhelptoaddressinconsistentandconfusingnationalandstatepoliciesoncarbonreductionandclean energy.Currentlythereisnoconsistentstandardformeasuringthermalefficiency.Technologiesexist todayformeasuringheatrate,buttheyareexpensive,requirehumanresourcestocontinuallymonitor them,andonlymeasuresurfaceattributes.Inadditiontoenablingrealtimemonitoring,the standardizedefficiencymetricshouldbedevelopedtoallowthermalefficiencyimprovementsincoal plantstobecomparedtootherpowergenerationtechnologies.Thiswillhelppavethewayforsuch efficiencyimprovementstoqualifyunderfederalandstatecleanenergy/lowcarbonincentive programs.Keyattributesinclude:
Accurateandprecise Availablesoon Reasonablecost Relativelysimpletorun PossibleuseofCO2/MWhasametric,thoughthiswillrequireabigculturalchange
ImplementationSteps
Gothroughstandardsgroups(ASME,EPRI,NIST,utilityorganizations)todevelopstandards DOEfacilitatesdiscussionstoexpressindustryneedsandgovernmentdrivers DOEfundsinstrument(s)todothisbetterthroughNETL ExplorewhetherthisdatashouldbeamongthesetofstandarddatareportedtoNERC,EPRI,etc.(longerterm, aftertheaboveaccomplished)
RolesforGovernment
Facilitateddiscussions(DOE) Technologydevelopmentfunding(DOE) ReportingextendEIAreportingofheatrates(EIA form860)tothenewstandard;publishdatafor baselinetrendinformation.
Supportandparticipateindiscussions;everyone shouldhaveaseatatthetable Ensurethatdiscussionsstaytechnical
Existenceofaconsistentmetric Baseforanyefficiencygainismeasured Baselinesetandconsistentmetrictousefor comparisonsacrossdifferenttechnologies
NextSteps
Compileexistingresearchonthistopic Identifystakeholderswhoneedtobeatthetable Establishleadcontractortoownthis(itisnota volunteereffort)
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ProvideIncentivestoIndustrytoPursueEfficiencyImprovements
DescriptionandKeyFeatures Theoverarchingchallengetoimplementingefficiencyimprovementsincoalplantsisthelackofa businesscaseforowner/operatorsofpowerplants.Buildingabusinesscaseforindustryisabroad initiativeandinvolvesamyriadofpotentialactionsonthepathtowarditsachievement.Twomajor featuresinclude:
Inclusionofexternalitiesinfinancialdecisionsthrough: apriceoncarbon(e.g.carbontax,capandtradeprogram) paritybetweenefficiencyimprovementsandothercleanenergytechnologyunderRPSandothercarbon reductionprograms publiceducationthatapoundofCO2reducedisapoundofCO2reduced,nomatterwhatthesource Makingchangestofederalandstateregulationssuchthatcostsandsavings(e.g.fuelcosts)areshared betweenutilitiesandconsumersinsteadofpassing100%throughtoconsumer.
ImplementationSteps
EvaluateefficiencyimprovementcoststoreduceCO2atcoalplantsrelativetoalternativelowcarbon technologies DOEpublishesreportoncosteffectivenessandCO2reductionpotentialofefficiencyimprovements Developstandardizedunitofmeasurementforefficiency EstablishunitofmeasurementforRPS(e.g.poundofCO2/MWhreduced) EducatestatesthroughNERUConRPS Analyzefuelpassthroughcostsharingapproach
RolesforGovernment
EvaluationofcostsofvariousCO2reduction technologies,includingsupplysideefficiency improvements Publicationofreportofcosteffectivenessofefficiency improvements Hoststakeholderworkshoponcostsharing methodologies(fuelpassthroughmodel) StategovernmentspilotRPSparity
Possibilitiesincludeeducationofstatesand consumerssponsoringprogramsinschools, leveragingtradeassociationsandcouncil communicationnetworks.
Greaternumberofefficiencyimprovementprojects. ParityofCO2reductionmethods. Impactsofeffortsmightbemeasuredby: numberofbillspassedreflectingparity pollsreportingpublicacceptance articlesandmediaattention numberofstateswithout100%passthroughto consumers numberofstatesthatincludesupplyside efficiencyinRPSprograms
NextSteps
DOEworkshopwithindustrywithrespectto potentialforachievinggoal Workshoponpubliceducationstrategy
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EducationandPromotionofGenerationEfficiency
DescriptionandKeyFeatures Thepublicdoesnotcurrentlyvaluecarbonreductionsfromefficiencyimprovementsinpowerplants thewayitvaluesthesamereductionsfrom,forexample,solarandwindpower.Itisimportantforthe publictounderstandthatapoundofCO2reducedisapoundofCO2reduced,nomatterwhereitcomes fromorhowitisdone.Educatingthepublicwillfurtherpushpublicpolicytowardstreatingefficiency improvementsasanequallysignificantandbeneficialoptionforreducingCO2,whichshouldreceivethe sameincentivesasothermethodsofreducingCO2.
Keymessageapoundofcarbonsavedisapoundofcarbonsaved,nomatterwhereitcomesfrom(e.g.wind generation,carbonsequestration,increasedcoalefficiency,etc.)
ImplementationSteps ImplementationwillinvolveeffectivelyconveyingtolawmakersandthepublictheoptionsforCO2 reductiononacostpertonofCO2basis.

SpecificstepsTBD
RolesforGovernment
Disseminationofinformation Equateefficiencyimprovements(ongeneration supplyside)tootherlowcarbon/greentechnologies
Limitedduetoconflictofinterestissues
ParityofCO2reductionmethods Educatedpopulous TBD
NextSteps
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SummaryResultsGroupC
Participants
NicholasBianco BenChorpening AndrewCotter TerryFujino JonGallinger EdGonzales YasunoriIshizu BillKrause LloydKelly FredLang SastryMunukutla RussellNoble BobTramel JohnWalke WorldResourcesInstitute NETLOfficeofResearchandDevelopment NationalRuralElectricCooperativeAssociation MitsubishiPowerSystems Alstom XcelEnergy MitsubishiHeavyIndustries,Ltd. McKinsey&Company LeonardoTechnologies,Inc. ExergeticSystems TennesseeTechnicalUniversity SouthernCompany TennesseeValleyAuthority NaturalResourcesDefenseCouncil
Facilitators
MauricioJustinianoandMatthewMunderville
Apromisingtoolkitoftechnologiesandprocessesareavailabletoplantownersandoperatorsto improvethermalefficiency,includingwasteheatrecovery,equipmentmodernization,better maintenancepractices,improvedmonitoring,andimprovedfuelmanagement.Highimpact opportunitiesincludethefollowing: Largequantitiesofheatarewastedatpowergenerationplants.Improvementstothe managementofwasteheat,manyofwhichareeasilyimplementable,canleadtoincreased efficiencylevels.Specificopportunitiesincludethefollowing: o Reburnashtoobtainthegreatestheatenergyfromfuel o Captureexcessheatfromventedsteamforreuse o Installandmaintaininsulationoftheturbineandothersitesofheatradiation Manyplantsinthefleetareveryold,andmodernizationoftheequipmentusedincoalfired powerplantswillbeessentialtoachievethedesiredincreaseinefficiency.Modelingcouldbea significanttoolinthiseffort(e.g.,theapplicationofcomputationalfluiddynamics).Another importantoptionistoeducateoperatorsontheimportanceofcomponentoptimizationandthe minimizationofredundanciesofexistingpowerplantsystems.Newandimprovedmaterials wouldallowforturbineupgrades,andoperatorswouldbeabletoimplementmoreefficient operatingtemperaturesandpressuresthroughoutthesteampath.Formanyplants,however, retirementmaybeabetteroption,particularlyifvoluntaryretirementweretoleadtothe constructionofanewandmoreefficientcoalfiredplant. Asturbinesageandcomponentsdegrade,therearenaturallossesinefficiency;better managementoffoulingpresentsasignificantopportunitytoreclaimtheselosses.Inparticular, improvementsinsootblowingareanattractiveopportunity,includingtheintroductionof intelligentblowingsystems,ortheconversionoftheairusedinsuchasystemtosteam.Regular
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andmorethoroughcleaningofthesystemrepresentsasignificantopportunityforefficiency gains. Improvementsinmonitoringsystemswouldhelpincreaseplantefficiency.Ofparticularinterest isthecapabilitytoobtainaccuratemeasurements,inrealtime,andenableinstantsystem adjustmentstooptimizeplantoperationandefficiency.Also,earlydetectionofleaks,possibly throughthermocouplesorairflowmeasurements,wouldallowplantpersonneltorespondto problemsmorequicklyandmoreeffectively. Improvedcoalmanagementpracticescanhelpboostefficiency.However,fuelconcernsarenot prominentamongplantoperators.Costeffectiveimprovementsinthetreatmentofcoalcanbe implementedwithrelativeeasetoincreaseoverallefficiency;theseimprovementsincludeusing lowgradeheattodry,coveringcoalpilestokeepthemdry,andthepreventionoflossofheat valuethroughstagnationanddegradation.
Cultural,market,andregulatorybarriersrepresentthebiggestchallengestoowners/operatorsin makingefficiencyimprovements.Thesebarriersaredetailedbelow: Theexistingoperatorculturevaluingplantreliabilityoverefficiencyisasignificantbarrierto theimplementationoftechnicaloptionsforefficiencyimprovements.Managersupportfor upgradesandmaintenancethatcouldpositivelyimpactefficiencyissmall. o Currently,plantoperatorspurposefullyintroducealargeamountofredundancyintheir systemstomaintainpeakreliability,significantlyreducingtheefficiencyofpower production. o Smallstaffingatmostplantsmakeschangesextremelydifficulttoimplement.Operatorsat understaffedplantsdonothavethetimeorthefinancialresourcestoaddressproblems outsidethescopeoftheirrequiredactivities. Thelackofincentivesforimprovementsfurtherdiscourageseffortstoincreaseefficiency.The capitalcostrequiredforequipmentreplacementscanoftenbeprohibitive,whiletheabilityto passincreasesinfuelcoststoconsumersremovestheeconomicmotivationtomakethose upgrades.Evenwiththedrivetoimprove,themanychallengesassociatedwithobtainingcapital fundingmaketakingsuchactiondifficult;often,shorttermneedspreventplantsfrom embarkingoneffortsthatwouldbebeneficialinthelongterm. o FearoftriggeringtheNewSourceReviewprovisionoftheCleanAirActprevents significantactionfrombeingtaken. Theuncertaintyoffutureregulationisamajorbarriertotheimplementationofplant improvements.Themanyscenariosassociatedwiththeintroductionofnewcarbonemission regulationspreventsplantsfromtakinglongtermaction,particularlythepossibilitythatnew regulationsandstandardscouldinvalidateimprovementsmade. o ManyinthecoalindustryfindthevisionsofDOEandtheEPAtobeinconflictthatDOE wishestoincreasetheefficiencyofcoalfiredplants,whereastheEPAwishestophaseout coalfiredgenerationcompletely.
ProposedInitiatives
TechnologyDemonstrations
Thisinitiativeseekstodemonstrateandquantifythebenefitoftechnologiesthatcanincreaseefficiency. Successfulimplementationwouldrequireateamofexpertstoidentifycandidatetechnologies, determinemetricsforassessment,andprovideplantswithbothdataandtheopportunitytoseethe
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benefitsofthetechnologiesfirsthand.Suchaprogramnotonlyboostsefficiencyandbenefitstheplants, butmayserveasthefoundationforfutureinvestmentsinotherplants.
ReachOuttoSeniorManagementofUtilities
Thisinitiativeseekstojustifyinvestmentinheatrateimprovementstoseniormanagementutility personnelthroughnoneconomicmotivation.Successfulimplementationwouldrequireveryhighlevel involvementatagovernmentleveltocapturetheattentionofutilityCEOs,aPRcampaign,andthe establishmentofahighlyvisibleawardforefficiencyimprovements.Suchaprogramcouldfuel competitionamongutilitiesandachievebroadefficiencyincreasesnationwide.
IncentivesforExistingFleettoImplementUpgrades/Repairs
Thisinitiativeseekstoprovideincentivesfortheexistingcoalfiredfleettoimplementequipment upgradesand/orrepairs.Successfulimplementationwouldrequiretheidentificationofparticular improvementopportunitiesandincentivestobegranted,aswellasastandardforthedeterminationof efficiency.Thisprogramwouldbeapplicabletoplantsofallsizesandefficiencies,wouldallowutilitiesto quantifyimprovementsimplementedbybothdollarandCO2value,andwouldhelpenablecoalfired plantstoaccommodatecarboncaptureandstorage.
RetirePlantswithHeatRateAboveaCertainLevel
Thisinitiativeseekstoquantifyaheatratelevelabovewhichpowerplantswouldbeencouragedto retire(11,200MMBtu/kWhwassuggested).Successfulimplementationwouldrequiretheadoptionofa standardmethodfordeterminingheatrateandsubsequentapplication,aswelltheidentificationand profferingoftheincentive(s)todoso.Suchaprogramwouldremovetheplantswiththelowest efficiencyandprovideplantmanagerswithanalternativetorunningtheirplantsintotheground.
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RawResultsGroupC GROUPC TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(1OF2)

NewOperatingPractices
Centralizedperformance groups Automatedsystemto examine/process incomingcoal Biomasscofireseparate fluidbedboiler Calcinatelimestone(or lime)inboilertoease cleaning(needresearch)
Equipment
Highorlowpressureturbineupgrade Fluegas(toheatcondensate)condensingheatexchanger Equipment(steampath)upgradesCFDmodel Intelligentsootblowingsystems Variablespeeddrives Combinedheatandpower Increasingoperatingtemperaturesofboilers/turbineswithnew materials Fanupgradesaxialfans InvestigateDCcoronaforbackpressurereduction Condenserballcleaningsystem Increasehydrogenpurityreducecoolinglosses Betterboilerinsulationtoreduceheatradiation Streamsidecondensernanocoating FacilitybestpracticesLEDlighting,etc. Steamsootblowing(conversionfromairtosteam) OrganicRankinecycle Naturalcirculationboilers GuardianandVortexseals ReplaceVenturiquenchertoreducepressuredropinscrubber Tubeinshellairheatertopreventleakage
ImprovedOperatingPractices
Identifythebestoperators(incentivize) Optimizefan/pumpredundanciesneuralnet Primaryairtemperatureoptimization Air/fuelbalancingindividualburners Optimizecontrolvalvepressureloss Optimizepipingpressureloss Recoverventsteamheat Boilerheatingsurfaceadjustments Optimizationofelectrostaticprecipitatorswith emissionsmonitoringsystems(EMS) Beltscales/continuousashmonitors Reburnashtoextractadditionalenergy Optimizestartupsequence Lowerairheateroutputtemperatureby controllingSO3dewpoint Improvewaterchemistry/management(for turbines) ImproveO2measurementsinboiler Optimizepressureoncrossoverlinebetweenthe intermediatepressure(IP)andlowpressure(LP) bypass Improvetopendinstrumentation
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GROUPC TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(2OF2)
SensorsandMonitoring
Realtimeperformancemonitoring Standardizeperformancemetrics Cycleisolationbettervaluemonitoring Condensermonitoring Detectingtubeleaks Airflowmeasurementforboilers Thermocouplestoidentifyleakingsteamtraps Advancedfireballinstrumentation
CoalManagement
Uselowgradeheatforcoaldrying Understandfuelbeingburned Improvecoalfineness Keepcoalpilesdry(cover) Preventcoalstagnation/degradation
Maintenance
Performmaintenancetoachieveneededheatrate improvement Increaseandincentivizefrequencyofmaintenance Increasefrequencyofboilerfeedpump replacementorrebuild Airpreheatermodification/maintenance
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GROUPC BARRIERSANDCHALLENGESTHATINHIBITTHEADOPTIONANDAPPLICATIONOFTECHNICALOPTIONS
Technical
Ageoffleetpreventssignificant changes Inabilitytocompareplantson samebasis Difficulttomeasureheatrate UncertaintyinEMShigh reporting Plantefficiencyislimitedbyits existingdesign Controversyoverexisting standardsASMEefficiency standards Negativeeffectsofslagging Combustionoptimization incomplete(particularlyinreal time)
RegulatoryandGovernment
UncertaintysurroundingCO2 price Uncertaintyofnewregulations ConflictingvisionsofDOE/EPA Negativesocietalperceptionof coal Preventsnewplant construction Uncertaintyofplant longevity ConstantthreatofNSRin responsetochanges Inabilitytomakelongterm commitmentspreventscoal dryingtechnology Availabilityreliabilityforcedto focusonreliability,not efficiency
OperationsCustoms
Operator/managementculture Lackofmanagementsupportfor regularmaintenanceactivity Smallstaffingdifficultto implement/operate/maintainnew concepts Heatratenotrecorded consistentlyinindustry Lackoftrainingmonitor, operations Insufficienttechnicalpersonalon userside Changingnatureofelectricload
Costs
Fuelcostpassthrough Lackofcapitalfunding Shorttermvisiontomake financialdecisions Requirementsfornoneconomic dispatch Cost/benefitofimprovements (maynotpayoff) Costofdeveloping/testing advancedmaterials Raterecoverycantcommit withoutit Differentialofenergycosttoprofit Highcapitalcostofcoaldrying Uncertaintyoffuelsupplyand prices PRBcostsmoreefficientthan Appalachian
Mostimportant
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GROUPC POTENTIALINITIATIVES
Incentivesforexistingfleettoimplementupgrades/repairs Lowcostloansforefficiencyimprovements Taxcredits,etc. Federalfuelincentives ReachouttoseniormanagementSecretaryofEnergyandCEOslevel Highlyvisibleefficiencyawardfortopplants Noneconomicincentives Decreaseriskofstrandedinvestment TechnologydemonstrationscostsharedbyDOE Retireplantswithheatrateaboveacertainlevel Willrequiresignificantincentives,(minimumheatrate~11,200MMBtu/kWh) Newregulationspreventedfromaffectingexistingplantsforatime Specifiedtime(5years) EstablishapriceonCO2 Developcommonstandardforheatraterigorouslyanalyze,agreeduponmetric Requirespartnershipamongutilities Identifyandremovenegativeincentives CreateaDOE/EPAworkinggroupbettercommunication Providefinancialrecoverywhileinconstruction Sharebestpracticesamongmanagers/operators Streamlinepermittingprocessforhighefficiencyplants Couplewithretirementofoldplants DOE/utilityworkinggroup Implementmeanstoprofitfromfuelimprovements Federalinitiativeforvoluntarystateparticipationtoallowraterecovery Minimumstaffingrequirementforcertifiedengineers Maintenanceinitiatives Operationalinitiatives RequiredCO2/MWhorefficiencystandards
Mostimportant
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GROUPC INITIATIVES(1OF4)
TechnologyDemonstrations
DescriptionandKeyFeatures Thisinitiativeseekstodemonstrateandquantifythebenefitoftechnologiesthatcanincrease efficiency.Successfulimplementationwouldrequireateamofexpertstoidentifycandidate technologies,determinemetricsforassessment,andprovideplantswithbothdataandtheopportunity toseethebenefitsofthetechnologiesfirsthand.Suchaprogramnotonlyboostsefficiencyandbenefits theplants,butmayserveasthefoundationforfutureinvestmentsinotherplants.
Couldbeimplementedthroughthedevelopmentofamodelplant,orcouldbeappliedtoseveralplants Candidatetechnologiesneedtobeselected Requiresanetworkofinformationsharing Thermalefficiencyimprovementsneedtobeaccuratelyquantified Chooseagroupoftechnologies Provetheirheatratebenefits Quantifytheirbenefits.
ImplementationSteps
Gatherutilityexpertstoidentifythetechnologieswewanttolookatandhowtheyworkwitheachother(1 year) Decideonmetricsandparameterstoassesstheeffectofimplementingthesetechnologies(1year) Testthetechnologies(23years) Creatematrixofresults(23years)
RolesforGovernment
Makefunding/incentiveavailable Developingrequirementsforcertification Hostannualconference
Supplyplantsandbeartherisk Costshare
Laysthefoundationforfutureprogramsand companyinvestments Helpsdefinethe36%goalwithsupporting information Couldhelpcreateasealofapprovalfortechnologies
NextSteps
GetDOEtobuyinonconcept Createworkinggroup DOE/EPAinterface
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GROUPC INITIATIVES(2OF4)
ReachouttoSeniorManagementofUtilities
DescriptionandKeyFeatures Thisinitiativeseekstojustifyinvestmentinheatrateimprovementstoseniorutilitypersonnelthrough noneconomicmotivation.Successfulimplementationwouldrequireveryhighlevelinvolvementata governmentleveltocapturetheattentionofutilityCEOs,aPRcampaign,andtheestablishmentofa highlyvisibleawardforefficiencyimprovements.Suchaprogramcouldfuelcompetitionamongutilities andachievebroadefficiencyincreasesnationwide.
RequiresDOEinvolvementatthehighestlevel RefocusesCEOandplantmanagerprioritiestowardsenergyefficiency RequiresahighlyvisiblePRcampaign
ImplementationSteps
GetsupportfromSecretaryofEnergytogetCEOsonboard(6months) CreateaPRcampaign Createatop10plantreward/awardprogramforenergyefficiencyimprovements(6months1year) Definecriteria(1year) Giveout2011awards
RolesforGovernment
SecretaryofenergygetsCEOstogether CreatePRcampaign Createtheprogram Definecriteria
Participationatthehighestlevel PlangenerationR&Dmanagerscommunicatethe importanceoftheefforttoCEOs
Reducecarbonemissions Reducecostofelectricity Bringawarenesstoefficiency Providetopdownsupporttoheatrate improvements
NextSteps
Getfivetosixutilitiestosigninandotherswillfollow Createtheprogram
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GROUPC INITIATIVES(3OF4) IncentivesforExistingFleettoImplementUpgrades/Repairs

DescriptionandKeyFeatures Thisinitiativeseekstoprovideincentivesfortheexistingcoalfiredfleettoimplementequipment upgradesand/orrepairs.Successfulimplementationwouldrequiretheidentificationofparticular improvementopportunitiesandincentivestobegranted,aswellasastandardforthedetermination ofefficiency.Thisprogramwouldbeapplicabletoplantsofallsizesandefficiencies,wouldallow utilitiestoquantifyimprovementsimplementedbybothdollarandCO2value,andwouldputcoal firedplantsonthepathtowardsuccessfulaccommodationofcarboncaptureandstorage.
Broadbasedtoincludeanytypeofplant Incentivesforbothcurrentlyefficientandinefficientplants,butmorefocusedoninefficientones(above 11,200MMBtu/kWh) Incentivesproportionaltosizeoftheplants,applicableforallkindsofequipment Potentialincentives:Financialrecovery;lowinterestfunding;impunityfromnewregulations(witha minimumpercentageincreaseinefficiency) New/Repairedunitswilldisplaceother,lowefficiencyunits Incentivetomaintainefficiencyataparticularlevel
ImplementationSteps
Formajointgovernmentindustrytaskforce(nomorethansixmonths)to: Identifyqualifyingtechnologies Identifythepotentialforgains Identifythefundingmechanism Identifythemagnitudeofincentivesnecessary Qualifyincentivesbylevelofefficiencyincrease Determinemetricsforperformance(heatrateorCO2emissions) Developastandardforefficiencyimprovements BringdatatoOMB Afullyimplementedprogrammustberealizedin35yearstoreachthe2020goal
RolesforGovernment
Bringaboutandparticipateinajointgovernment industrytaskforce Examineexistingincentives Streamlinethepermittingprocess Monitorprogram
Participateintaskforce Implementchanges IncludeenvironmentalgroupsandNGOs
Metricsforparticularplantswillbeindividualized Rateofparticipation Dollarvalueofparticipation Dollarvalueofimprovementsmade Dollarsinvested/[CO2avoided/kWhr]
NextSteps
Identifytherightpeopleforataskforce(nomore thanthreemonths) Providemoredepth/fleshouttheprogram Getutilityparticipation Createthetaskforce
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Consumerdollarssaved(COE) Directandindirectjobeffects Followupreportingandmeasurementstoensure longlastingimprovement
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GROUPC INITIATIVES(4OF4) RetirePlantswithHeatRateaboveaCertainLevel

DescriptionandKeyFeatures Thisinitiativeseekstoquantifyaheatratelevelabovewhichpowerplantswouldbeencouragedto retire(11,200MMBtu/kWhwassuggested).Successfulimplementationwouldrequiretheadoption ofastandardmethodfordeterminingheatrateandsubsequentapplication,aswelltheidentification andprofferingoftheincentive(s)todoso.Suchaprogramwouldremovetheplantswiththelowest efficiencyandprovideplantmanagerswithanalternativetorunningtheirplantsintotheground.
Fuelcostpassthroughservestopreventretiringofold/inefficientplants Mayincludegasplants Maybenecessarytotieinreplacementwithanewcoalplant(i.e.,supercritical/advancedturbinedesign) CCSmayalsoserveasatieindependentonlocation(forsequestration) Shutdowncostsharecouldbeanincentive Retiring/Replacingjusttheboilernotfeasibletoomanyancillaryconsiderations CO2emissionsmayalsoworkasametricforretirementparticularlyannualrates
ImplementationSteps
Formajointgovernmentindustrytaskforce(nomorethansixmonths)to: Identifyqualifyingtechnologies Identifythepotentialforgains Identifythefundingmechanism Identifythemagnitudeofincentivesnecessary Qualifyincentivesbylevelofefficiencyincrease Determinemetricsforperformance(heatrateorCO2emissions) Developastandardforefficiencyimprovements Developarankingschemeforplants BringdatatoOMB Afullyimplementedprogrammustberealizedin35yearstoreachthe2020goal
RolesforGovernment
Bringaboutandparticipateinajointgovernment industrytaskforce Examineexistingincentives Streamlinethepermittingprocess Monitorprogram Dontignoresmallerutilities(smallerunitsoften leastefficient)
Fullyparticipateintaskforce Involvesmallerutilities Provideopportunitiesforimprovement IncludeEEI
NetreductionofCO2emissions Numberofplantsretired Jobscreated/Economicimpact Avoidedpollutants(NOx,SOx,etc.) Naturallyretiredvs.optins(atangible,public benefit) Followupreportingandmeasurement
NextSteps
Identifytherightpeopleforataskforce(nomore thanthreemonths) Providemoredepth/fleshouttheprogram Getutilityparticipation Createthetaskforce
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AppendixA:FullParticipantList
ScottAffelt WilliamBabiuch NicholasBianco JonBlaney RonBreault CharlieBullinger ThamaraiP.Chelvan BenChorpening JaredCiferno AndrewCotter PhilDiPietro JeffreyEppink TomFogarty TerryFujino JonGallinger BobGiglio EdGonzales DavidHopkinson YasunoriIshizu StanKaplan LloydKelly KennethKern SikanderKhan PaulKolter BillKrause KatrinaKrulla FredLang EdLevy NewtonF.Logan GeorgeMues SastryMunukutla PaulMyles RussellNoble JamesNyenhuis KarenObenshain ColinOBrien SherryOdom KarenPalmer GavinPickenpaugh WilliamPott DarleneRadcliffe BarryRederstorff JudahRose PeteRozelle DonaldE.Ryan BobSeay ScottStallard ZoloTechnologies,Inc. MidwestResearchInstitute WorldResourcesInstitute ICFInternational NationalEnergyTechnologyLaboratory GreatRiverEnergy SiemensEnergy,Inc. NETLOfficeofResearchandDevelopment NationalEnergyTechnologyLaboratory NationalRuralElectricCooperativeAssociation NationalEnergyTechnologyLaboratory Enegis,LLC PNTEnergy MitsubishiPowerSystems Alstom FosterWheelerGlobalPowerGroup XcelEnergy U.S.DepartmentofEnergy MitsubishiHeavyIndustries,Ltd. CongressionalResearchService LeonardoTechnologies,Inc. NationalEnergyTechnologyLaboratory U.S.DepartmentofEnergy McKinsey&Company McKinsey&Company NationalEnergyTechnologyLaboratory ExergeticSystems LehighUniversityEnergyResearchCenter ZoloTechnologies,Inc. AmerenCorporation TennesseeTechnicalUniversity WorleyParsonsGroup,Inc. SouthernCompany EmersonProcessManagement EdisonElectricInstitute NaturalResourcesDefenseCouncil GEEnergy ResourcesfortheFuture NationalEnergyTechnologyLaboratory BoozAllenHamilton DukeEnergy AmericanElectricPower ICFInternational U.S.DepartmentofEnergy TheBabcock&WilcoxCompany WorleyParsonsGroup,Inc. Black&Veatch
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JeffStallings JosephStrakey BobTramel JohnWalke JamesWood CharlesZelek Facilitators RossBrindle JackEisenhauer AmandaGreene MauricioJustiniano LindsayKishter MatthewMunderville
ElectricPowerResearchInstitute NationalEnergyTechnologyLaboratory TennesseeValleyAuthority NaturalResourcesDefenseCouncil U.S.DepartmentofEnergy NationalEnergyTechnologyLaboratory
EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated
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TechnicalWorkshopReport h i l kh

ImprovingtheThermalEfficiencyof Coal FiredPowerPlantsintheUnitedStates C lFi d P Coal Pl t i th U it d St t

Seehttp://www.netl.doe.gov/energy analyses/pubs/NETL%20Power%20Plant%20Efficiency%20Workshop%20Report%20Final.pdffortheChicagoworkshop report.

RawResultsGroupA GROUPA TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(1OF2)

Largequantitiesofheatarewastedatpowerplantsandthereisanopportunitytoimproveheat recovery.Whilesomeamountofheatlossisinevitable,muchoftheheatcouldberecoveredfor additionalpowerandheatforplantoperationsasand/orfordistrictheating.

Highestimpactonefficiency Mostwidelyapplicableacrossall plants

Highestimpactonefficiency Mostwidelyapplicableacrossall plants

EducationandPromotionof ImportanceofGeneration efficiency

AccuratelyIncentivizeIndustry toPursueEfficiency Improvements

ImplementationSteps ImplementationwillinvolveeffectivelyconveyingtolawmakersandthepublictheoptionsforCO2 reductiononacostpertonofCO2basis.

RawResultsGroupC GROUPC TECHNICALOPTIONSTOIMPROVETHETHERMALEFFICIENCYOFEXISTINGPCPOWERPLANTS(1OF2)

Highestimpactonefficiency Mostwidelyapplicableacrossall plants

Highestimpactonefficiency Mostwidelyapplicableacrossall plants

GROUPC INITIATIVES(3OF4) IncentivesforExistingFleettoImplementUpgrades/Repairs

GROUPC INITIATIVES(4OF4) RetirePlantswithHeatRateaboveaCertainLevel

ElectricPowerResearchInstitute NationalEnergyTechnologyLaboratory TennesseeValleyAuthority NaturalResourcesDefenseCouncil U.S.DepartmentofEnergy NationalEnergyTechnologyLaboratory

EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated EnergeticsIncorporated

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