Wednesday, July 31, 2013

R&D Projects Target Cheaper Carbon Capture, Use, and Storage

In order to burn abundant supplies of coal globally while minimizing carbon dioxide emissions, cheaper methods of capturing, using, and storing greenhouse gas emissions from power plants are needed. A new federal agency is on the leading edge of identifying and supporting promising technologies.


The technology options available today for capturing carbon dioxide (CO2) from fossil-fueled power plants are limited and involve daunting energy penalties. They’re also expensive, adding up to 80% to the cost of power generation. Current options for using captured CO2 are mostly limited to enhanced oil recovery, which means this use of the captured, compressed, and transported greenhouse gas is limited geographically and practically. Other storage options are in their infancy and look expensive, if not cost-prohibitive. So where does that leave the power industry as it looks to a future that (especially given President Obama’s recently announced Climate Action Plan) is sure to include some sort of imperative to capture carbon emissions?


A few carbon capture and sequestration (CCS) research and pilot projects are under way around the world, but most have been on-again/off-again ventures, mostly because of uncertain regulatory, legal, and financing environments. But that doesn’t mean the issue is going away. In the U.S., the Department of Energy’s (DOE’s) newest agency takes the challenge seriously and is encouraging innovative research and development (R&D) to solve the puzzle of how to keep CO2 from energy-production activities out of Earth’s atmosphere.


At the 4th Annual Energy Innovation Summit (EIS) in February, more than 20 Technology Showcase displays focused on carbon capture, utilization, and storage (CCUS). The EIS is sponsored by the DOE’s Advanced Research Projects Agency–Energy (ARPA-E), the four-year-old sibling of the Defense Department’s DARPA. As of this spring, the ARPA-E website listed a total of 15 projects that were part of the agency’s Innovative Materials and Processes for Advanced Carbon Capture Technologies (IMPACCT) program.


ARPA-E focuses on modest-size, short-term grants for projects that are at too early a stage to attract private, venture capital. And although the funding provided by ARPA-E may be its most visible role, at least as important are the partnerships it arranges for the projects it funds. By bringing a variety of researchers, national laboratory scientists, and corporate partners together, ARPA-E connects individuals and groups that might not have had access to each other or who wouldn’t have thought they could help solve each other’s problems. Such strategic partnerships are important not just for solving technical problems but also for making the transition to a stage where private investors become interested. (For more on the agency, search for “ARPA-E Plays Matchmaker for Innovative Energy Research Projects” at powermag.com.)


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Classic Marmaduke: Marmy’s First Lesson

Steve Elonka began chronicling the exploits of Marmaduke Surfaceblow—a six-foot-four marine engineer with a steel brush mustache and a foghorn voice—in POWER in 1948, when Marmy raised the wooden mast of the SS Asia Sun with the help of two cobras and a case of Sandpaper Gin. Marmy’s simple solutions to seemingly intractable plant problems remain timeless. This Classic Marmaduke story, published more than 50 years ago, reminds us that even the most modern steam plant is only as good as its operators.


“Something’s haywire,” observed young Marmaduke Surfaceblow when he reached the large cottonwood tree only a block from the village power plant. The young man automatically stopped to listen and look down the dusty road at the small, red brick plant near the river. The high steel stack belched a plume of thick grey smoke, which spread over the low evening sun’s embarrassed face. As the young man listened, he knew from the sound of the exhaust that the large compound engine was running. “Wonder why?” he crackled in his deep voice, clamping an unlighted cheroot between strong white teeth. Then, taking giant steps, he hurried downhill to the plant.


Milldew, Missouri, on that long-ago day shortly after World War I, had a scant 200 inhabitants. But the little Mississippi River hamlet would one day become famous for having been the hometown of the senior member of Surfaceblow & Associate, internationally respected New York consulting engineers. At age 15, Marmaduke was already an overgrown, rawboned country lad, 6 feet in height. And he had been rattling over the red-clay Missouri country roads in a model-T Ford ever since his legs were long enough to reach the floorboard pedals.


Fact is, since age 10, Marmy, as he was fondly called by the natives, had been helping Thaddeus McSpadden with his blacksmithing, overhauling farm machinery, Stanley steamers, and the “gas buggies” of the period. Then, during the hectic autumn harvesting seasons, the youthful embryo mechanical genius had fired and operated steam threshing engines, some fitted with straw-burning boilers, as well as any grownup.


Marmaduke had spent his 14th birthday, stripped to the waist, shoveling coal into the hungry boilers of the Mississippi River side-wheeler, the Great Republic. By the time the river queen returned to St. Louis from New Orleans, Marmy could handle a slice bar and keep steam on the line along with the burliest river firemen.


“If that young’un Marmy can’t fix it, better bury it,” was heard frequently around the Milldew countryside. And that included repairing everything from grandfather clocks to internal-combustion engines.


Now, with the war having claimed one of his shift operators, chief engineer Diogenes Bluer, an old friend of Thaddeus McSpadden, had put the youngster on as an operator at the “electric light” plant. Marmaduke had the night shift, starting at 6 p.m. It was a 12-hour “day,” and his pay was $100 a month. Not bad for the times, the job and the hamlet, no siree—not to mention for a youngster of only 15.


The small plant had four horizontal?return-tube (HRT) boilers, rated at 150 boiler hp, on that day’s basis of 10 sq. ft. of heating surface equaling 1 boiler hp. Although some backward areas still use this antiquated method, we rate boilers today on pounds of steam produced per hour.


Two horizontal Buckeye steam engines drove shaft-mounted alternators with belted exciters. The small single?cylinder engine, dubbed “Little Buck,” was rated at 75 kW; the larger, cross? compound “Big Buck” at 150 kW.


Sure, today those old timers sound insignificant in capacity. But to the youthful country lad, the large unit, especially, with its heavy flywheel spinning and its crosshead reciprocating steadily to and fro, seemed impressive enough. Each engine had one piston-type-valve, and the compound’s low-pressure side had a slide valve.


Usual practice was to run the small unit from midnight to around 7 a.m., the time when the load started climbing. Peak load was from 140 to 150 kW—except on Saturday nights, when it shot up to 175 or even 180 kW, and the compound needed help from the smaller engine.


On Saturday, farmers drove to town by buckboard, or with their Webber & Dame green farm wagons loaded with produce and children, or in their Tin Lizzies. The younger people would congregate around the ice-cream parlor next door to Enoch Fidley’s Feed & Grain Exchange. Smedley’s Tonsorial Emporium and the grand Pool Parlor next door would buzz with activity. And the new Lyceum Movie Palace, boasting 100 seats and recently completed in what had been Jastrow’s Livery Stable, would have standing room only, especially if Harry Carey starred in a cowboy picture and Charlie Chaplin added icing to the evening’s cake.


On Saturday evenings, merchants along River Road had their stores a blaze with electric lights, displaying merchandise stacked on the sidewalk beneath the wide veranda that extended along the storefronts from one end of the block to the other.


Yessir, while the biggest excitement on weekdays might be a dogfight or two on dusty River Road in front of Schwartz’s Butcher Shop, on Saturday the town always came alive. And this WAS Saturday.


Marmaduke opened the engine-room door and apprehensively stepped inside. He was enveloped by the warm, sweet aroma of steam in contact with cylinder oil. And the big compound was throbbing steadily away as it reciprocated majestically, hissing light feathers of steam from stuffing boxes at the end of each stroke. The spokes of the massive flywheel were a blur, and its vertical fly?ball governor spun in merry-go-round fashion. Beyond Big Buck, Marmy saw Cyrus Clooney, the day operator, through the blurred flywheel spokes, working away at something over Little Buck.


Stopping for a second, Marmaduke watched Clooney. What was he doing—fishing a piece of broken piston ring out of the smaller engine’s steam passage? The young man knew instantly what had happened. Yes, Little Buck had evidently taken a drink of water which knocked out her cylinder head, bent her piston rod, and broke the rings on her piston valve.


“Looks like a tornado’s been here. What a mess,” rumbled Marmaduke, lighting the cheroot and taking a drag on it. “Where’s Diogenes?”


“Idunno—reckon he’s gone home to supper,” came the unconcerned reply from Cyrus as he continued his fishing expedition. “And that’s where I’m heading, soon as I snare this last dagnabbed piece of ring out of this here port.”


Now, chief engineer Diogenes Bluer was of the old school. Like operating engineers of the day, he had got his “schooling” by starting out as a “boomer engineer,” firing HRT boilers and operating steam engines at whistle stops throughout the country. After satisfying his wanderlust and acquiring a first-hand knowledge of boilers and engines, from simple “side-winders” to the stately Corliss, he had returned to settle down back in his hometown.


Diogenes was a big, burly man of about 250 pounds, with a close-cropped grey mustache and a bald head, which was always covered by a ten-gallon hat, his trademark. Although on the quiet side while on the job, Marmaduke soon learned that the chief had all the right answers when the chips were down. Chief Diogenes, as he was respectfully known throughout the Ozarks, and young Marmaduke had a great deal of respect for each other.


“She’s all yours,” exclaimed Cyrus, dropping the last piece of piston ring on the workbench. He squirted lube oil on his grimy hands, rubbed them together to work off the dirt, then vigorously wiped them with waste. “I’m making tracks, taking Rosie Gerber to the bam dance out at Pevely’s new electrified farm,” he added as he signed the log book. Then, reaching the door, “I’ll be thinking of you when Bib Buck starts calling for help. And if the lights go out, me and Rosie won’t mind—ha, ha.” He was gone.


Marmaduke knew it was HIS time to start worrying. How was he going to get by with the smaller engine torn apart and the peak load sure to follow in another two hours?


Perhaps chief Diogenes thought leaving the young man by himself in a tight situation would be good for him. Or maybe he wanted to see exactly how Marmy would act in an emergency. Who knows? At any rate, the chief didn’t show up for two very, VERY long hours. By then, the load had been inching up steadily, and the youthful operator was extremely concerned. It was his first job as a shift operator in a steam power-generating station; he had started only three weeks ago! And this was the first time he had faced the peak load all by himself, with Little Buck’s anatomy scattered over the floor. Worst of all, if the breaker tripped, River Road would be thrown into darkness. And the entire Ozark countryside would remember only that the blackout occurred on Marmaduke’s shift. Now THAT would be something to carry to his grave.


Just as the embryo engineer, with eyes glued anxiously to the wooden instrument panel, was wondering WHAT he could do to prevent the breaker from tripping—lash it down? No, never—he felt a cool breeze flow in as the back door of the engine room opened. It was Diogenes himself. The big man never looked so big as he did to the young man at that moment.


“Gosh, Diogenes, am I glad to see YOU,” blurted the young man. “The load’s nearing one-fifty, and Big Buck’s about to start slowing down. What should I do?”


Diogenes didn’t answer, giving the impression he had had a very leisurely and satisfying dinner and now wanted only to enjoy a smoke. He walked slowly to the instrument board and glanced at the steam gage, then at the frequency indicator. The meter registered slightly below 60 cycles. Removing the corncob pipe from his mouth, he tamped down the tobacco with his little finger, struck a wooden match with one hand by scratching it with his thumbnail, lit the pipe and drawled. “Just you keep your shirt on, young feller.”


Then, glancing at the steam gage, “Go tell Alex to keep the water low in the glasses—maybe a half-inch above the nut—and his boiler pressure right up on the pop valves.”


The perplexed young operator looked on in disbelief as the chief lumbered over to his swivel chair, pulled it across the floor to the side of the compound painted base, pulled the brim of his hat over his eyes, and leaned back in his chair as if going to sleep.


“He’s blown all his gaskets,” thought the concerned young operator. “Peak load coming up, no reserve power, and he’s hitting the hay.” But now that the chief had returned, at least the problem was on HIS shoulders. Marmaduke walked into the fireroom.


The fireman has pushed a wheelbarrow of coal in from the outside coal pile, and was dumping it in front of a boiler. “Alex, chief Diogenes wants you to keep the water low, just above the bottom nut. No time for Big Buck to get a shot of water. And he wants that steam right up on the pops,” relayed Marmaduke.


The fireman glanced up at the steam gage, then quickly at the water level in the gage glasses. Hoisting one foot up on the empty wheelbarrow, he removed the sweat towel from his neck, and wiped the perspiration and coal dust from his neck, face and forehead. “Well, she’s right up there now, Marmy, old chum. If she goes any higher she’ll pop, that’s for sure.” With that, he opened a furnace door. The hot glare from the flames flooded Alex in a blaze of red light, magnifying into a giant shadow on the boiler front opposite. Alex got busy with the slice bar, breaking up a large clinker on the coal bed.


Marmaduke walked back into the engine room. Yep, the chief was still reclining in his chair, hadn’t changed his position. So the young man dismissed the immediate problem from his mind, and set to work routinely checking the oil cups on the compound. He felt the main bearings with the back of his hand, as Diogenes had taught him, then reached for the long-spouted oil can and started filling the cups. But all that time, he kept glancing at the chief.


Suddenly, Marmaduke realized that chief Diogenes wasn’t snoozing after all! He was quietly and comfortably observing the motion of the valve gear.


The engine had an inside traveling cut?off, and, as the load built up, the travel increased. Sure, that’s what the old fox was up to—observing the valve gear from where he sat, he could see when the valve’s travel was nearing its full?out position.


“Marmy, come here,” called the chief, as soon as he decided that the valve travel had reached the full-out point. The young man hurried to the chief’s chair. And it was at that point that Marmaduke Surfaceblow got his first important lesson in compound steam engine operation. Bluer pointed to the one-inch line tapped into the main steam line just above the throttle and low-pressure cylinder chests. A valved branch of the one-inch line extended down into the sewer.


Young Marmaduke knew the line was used to drain the main steam line in to the sewer before warming up the engine. He also knew it served to “goose” the engine on the low-pressure side when, on shutdown, the h-p piston came to rest at dead-center.


“You just eyeball that steam on the receiver, Marmy, and see what happens,” instructed the chief. Marmaduke glued his alert eyes onto the gage. It registered about 12 psi, which he knew was normal for the load.


The chief started cracking the valve on the one-inch line to the receiver. And Marmaduke observed the receiver pressure start building up, ever so gradually. As soon as it reached 15 psi, Big Buck perked up considerably, cranking away in earnest, and it came right up on the governor. The young man also observed that the frequency indicator was again riding smoothly at 60 cycles.


Chief Diogenes didn’t have to explain what he was doing, nor why. Young Marmaduke had the picture instantly, mentally kicking himself for not having thought of it before. All he had to do was observe that the one-inch line connected the main steam from the boiler to the steam chest of the l-p cylinder’s valve, thus bypassing the h-p cylinder and bleeding boiler pressure steam directly into the l-p cylinder.

Young Marmaduke had the picture instantly, mentally kicking himself for not having thought of it before. Source: POWER


From that day he never failed to study thoroughly every piece of equipment he operated, so he could take care of every mechanical hookup to keep his plant running.


In years to come, he would bring in several triple-expansion engine-powered ships on only one cylinder, and several others on two. Not only that, but right then and there young Marmy made up his mind to make a career of power-plant operation—that’s how impressed he was with the way chief Diogenes met the peak load with his ingenious one-inch piping.


Two weeks later, the needed parts for Little Buck arrived from the factory up?river in Dubuque, Iowa. Marmaduke and Cyrus spent their watches assembling Little Buck under the watchful eyes of Diogenes Bluer, with a few hours of help from Thaddeus McSpadden, the blacksmith. By the following weekend, the single-cylinder Little Buck was ready to assist Big Buck with the heavy Saturday night load.


Since that long-ago day back in Milldew, considerable bilgewater has been pumped over the sides of many ships. And Marmaduke has helped grind out kilowatts galore, not to mention solving numerous perplexing energy-systems problems in various corners of the globe. But chief Diogenes’ actions that day taught the youngster one important lesson he has made excellent use of many times since: Energy systems equipment, regardless of how sophisticated, is only as reliable as the operator in charge.


[Note: If you enjoyed this tale of Marmaduke Surfaceblow’s adventures, visit the POWER Store to purchase a compilation of stories that originally were published in POWER—Marmaduke Surfaceblow’s Salty Technical Romances. ]


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The Case for Utility Boiler Fuel Delivery System Upgrades

A vital part of any coal-fired unit is its fuel delivery system (FDS). A newly formed subcommittee of the ASME Research Committee on Energy, Environment, and Waste has investigated potential FDS upgrades on three typical 500-MW wall-, tangential-, and cyclone-fired boilers. The subcommittee has produced a series of suggested upgrades that have a simple payback of no more than two years.


The American Society of Mechanical Engineers’ Research Committee on Energy, Environment, and Waste (RC EEW) was formed more than 40 years ago with a focus on industrial and municipal solid waste. The Fuel Delivery System Subcommittee was recently formed to expand the RC EEW’s original charter to include all fuels, including the energy and environmental aspects of those fuels. The first project undertaken by this subcommittee, begun in September 2011, was a feasibility and economic analysis of potential upgrades to Powder River Basin (PRB) coal-fired power plants. A summary of results of the subcommittee’s work to date follows.

The first step in the subcommittee’s analysis of fuel delivery systems (FDS) was to identify the family of plants of interest. A recent article (“Predicting U.S. Coal Plant Retirements,” May 2011, available in the POWER archives at powermag.com) noted that the U.S. coal-fired fleet consisted of 1,105 units with a total nameplate capacity of 342 GW at the time the article was published. A majority of those plants were between 20 and 85 years old; only 35 new plants had been added over the past 15 years.


As a group, the units 50 years and older constitute about 53 GW or 20% of the total fleet capacity and 40% of all coal-fired units—many of which may be retired due to either normal business decisions or the cost of mandated retrofits of new air quality control systems (AQCSs). The next age group, the 30- to 45-year-old units, represent 216 GW and 63% of the current coal-fired fleet. Many of these were built during the 1960s and are much more likely to invite investment in plant upgrades (Figure 1).


1. Coal fleet average unit nameplate rating. The average unit rating was calculated by averaging the rating all of the units within each age category. Data are from early 2011. Source: POWER and Burns & McDonnell


The boilers of the 30- to 45-year-old units are mainly of opposed wall-, cyclone-, and tangential-fired configuration with average capacity factors ranging from 61.8% to 73.3%, as shown in Figure 2. In this age group, there were about 226 opposed wall-fired, 143 tangential-fired, and about 15 cyclone-fired boilers in operation in the U.S. in 2011.


2. Coal fleet average capacity factor. The average unit capacity factor was calculated by averaging the reported capacity factor of all the units within each age category. Many of the units in the five years or less category did not have data available. A 75% capacity factor was estimated. In all categories, if capacity factor data was not available, that unit was omitted from the average. Data are from early 2011. Source: POWER and Burns & McDonnell


These units—the backbone of the baseload coal-fired fleet—will bear the burden of ensuring that the usual high standards of electrical grid performance, availability, and reliability are met in the future. Though most of these units have high-grade AQCSs, they will require upgrades to comply with maximum achievable control technology, but the cost is not forecast to adversely impact unit competitiveness in terms of generation cost. However, the additional AQCS upgrades required for environmental compliance will add additional complexity to plants now straining to maintain unit availability and capacity factor.


A vital part of any coal-fired unit is its fuel delivery system, as shown in Figure 3. For the purposes of the subcommittee’s analysis, the FDS consists of the feeders, pulverizers (mills), classifiers, coal piping, and burners. These systems are vital for efficient and reliable plant operations but also require substantial maintenance due to the abrasive nature of coal.


Table 1. A comparison of possible fuel delivery system upgrades and their benefits. Source: The Fuel Delivery Subcommittee of the ASME Research Committee on Energy, Environment, and Waste


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Contact Energy Ltd.’s Te Mihi Power Station Harnesses Sustainable Geothermal Energy


Te Mihi Power Station is a two-unit 166-MW geothermal plant currently undergoing commissioning on New Zealand’s North Island. It replaces the Wairakei Power Station constructed in 1958—but with a much smaller environmental footprint. The double flash technology selected produces ~25% more power from the same amount of geothermal fluid that is currently used at Wairakei. For its continuing commitment to renewable geothermal energy, Contact Energy Ltd.’s Te Mihi Power Station is the winner of POWER’s 2013 Marmaduke Award for excellence in power plant problem-solving. The award is named for Marmaduke Surfaceblow, the fictional marine engineer and plant troubleshooter par excellence.


Contact Energy Ltd. (Contact) is one of New Zealand’s leading developers of sustainable power generation systems, with a diverse portfolio of geothermal, natural gas, wind, and hydroelectric assets. In terms of revenue, Contact is one of five large New Zealand power companies. Contact owns and operates 10 plants located throughout the country, producing ~25% of New Zealand’s electricity demand. Four of its facilities are geothermal plants located in the Central North Island.

In early 2007, Contact announced plans to invest up to $1 billion in the construction of new geothermal plants in the Taupo region, located near the center of the North Island. (All amounts in US$; US$1 = NZ$1.28 at press time.) The latest addition to Contact’s renewable portfolio is the two-unit 166-MW (159-MW net) Te Mihi Power Station (Te Mihi).


Contact CEO Dennis Barnes says its investment in Te Mihi reflects the company’s view that geothermal is New Zealand’s most cost-effective new baseload generation. Barnes identified the importance of Te Mihi to ratepayers when he said, “The additional 114 megawatts is expected to be required by the market by 2013 as economic growth resumes and will also contribute to lowering Contact’s average cost of generation.” The total cost of Te Mihi is estimated to be close to $623 million. A second project at Tauhara is in the development pipeline, with other projects seeking permits or in the reservoir exploration phase.


To develop Te Mihi, Contact engaged the McConnell Dowell Constructors Ltd., SNC-Lavalin, and Parsons Brinckerhoff New Zealand joint venture (MSP JV) to build Te Mihi. The engineering, procurement, and construction (EPC) contract was signed with MSP JV in February 2011 for two 83-MW geothermal power units to be constructed 5 kilometers (km) from the existing Wairakei geothermal power station.


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EPB Chattanooga Uses Smart Grid to Future-Proof Its Business Model



A municipal utility in the South may not be where you’d expect to find an exemplary smart grid implementation, but that’s just fine with EPB Chattanooga. Its leaders are raking in the kudos—including POWER’s 2013 Smart Grid Award—and their community is attracting new businesses in response to a fiber-optic-based system that has helped raise the profile of their city and bolster the sustainability of their utility.


Some utilities look at the process of installing smart grid technologies as a matter of necessary, partial or piecemeal upgrades. They may install smart meters in at least a portion of their service area to cut down on truck rolls, for example. Given the pushback on smart grid technologies that some utilities have faced from small but vocal minorities, and the difficulty others have had with regulators, undertaking smart grid projects can be fraught with controversy and delays. For others, including EPB (formerly Electric Power Board) Chattanooga (EPB), a smart grid project can be the lifeline to a sustainable future.


EPB, which does business under the brands EPB Electric Power and EPB Fiber Optics, was chosen as this year’s POWER Smart Grid Award winner for two main reasons. First, its technology choices, timing, and implementation have returned noteworthy benefits to the utility, its customers, and the community as a whole. Second, and more unusual, its smart grid work has enabled the utility to enter new business sectors that broaden and deepen its customer base, thereby giving it access to new revenue streams.


EPB has served the city of Chattanooga, Tennessee, since 1935 and is one of the largest municipal distribution companies in the country, serving 170,000 customers in a 600-square-mile area. As a community-owned utility, it aims to serve the community while providing reliable, low-cost services. Thanks to its smart grid, EPB has been able to deliver on that promise in unusual ways. Most notably, since September 2010, when EPB became the first company in the U.S. to offer 1-gigabit-per-second Internet speed, the high-speed communications it offers have been a distinctive selling point for city business leaders and developers. Of course, the fiber-optic cable enabling this new service was installed first and foremost to communicate with smart meters, smart switches, and all other smart grid devices.


Low-cost electricity is made possible in part by being a customer of Tennessee Valley Authority (TVA), whose portfolio is roughly 32% coal, 34% nuclear, 9% hydro, and 11% gas, with the balance coming mostly from natural gas combined cycle merchant plants. EPB also has 12 MW of customer-owned renewable generation on its distribution system, which includes a solar farm at an automobile manufacturing plant, one at the Chattanooga Metropolitan Airport, and 68 individual customers with varying levels of solar generation. But the smart grid has also kept costs low, as you’ll see.


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Challenges Facing Power Generators in ERCOT

Although nearly all energy experts agree that demand for electric energy in Texas will outstrip supply in the coming years, developers of new power generation facilities are facing significant headwinds. The cause of the problems is a unique mix of circumstances.


The competitive energy markets managed by the Electric Reliability Council of Texas (ERCOT) have been hailed by some as the best in the country for allowing the “free hand” of the wholesale generation market alone to send the appropriate pricing signals for new power plant construction. The following factors, however, pose challenges to ERCOT’s future energy supply:

An unwillingness on the part of suppliers to enter into long-term power purchase agreements.A related lack of liquidity in the term energy markets.A general reluctance on the part of lenders to provide financing for “merchant” projects.Regulatory changes affecting both existing generators and developers of new power plants.The absence of a capacity market.

Because the time needed to develop and complete an electric generating facility can exceed three years, Texans may face serious power shortages if some of these issues aren’t resolved in the near term.


Demand for electricity in ERCOT is rapidly approaching the level of existing supply. ERCOT has a target reserve margin (the percentage of available resources above peak demand) of 13.75%. Maintaining that reserve margin is critical to ensuring stability of supply and avoiding blackouts and brownouts. However, in each reporting year after 2014, ERCOT currently projects the reserve margin to fall below this target level.


Three main factors make adding new generation in Texas difficult: its deregulated market, regulatory issues specific to ERCOT, and weak market signals.

As of Dec. 31, 2001, investor-owned utilities (IOUs) in ERCOT were required to unbundle their operations. Following deregulation of the ERCOT electricity markets in areas served by IOUs, the provision of service to end-use retail customers became competitive, and electric providers no longer had a captive body of retail customers. Without a captive body of customers, it became extremely difficult for suppliers to predict prospective demands for power. As a result, they are now generally unwilling to commit to long-term wholesale power purchase agreements or to the construction of new projects.


Although the useful life of a thermal generation facility can exceed 40 years, the capital costs to complete those facilities are extremely high. Though a 40-year power purchase agreement is not necessary to induce investors to build a new power plant, some level of predictable cash flows for a significant period of time will likely be necessary.


Those investors having a larger appetite for risk may be willing to invest without a long-term contact, but in order to do so, these higher-risk investors would also expect higher returns on their investment and would need to see forward pricing fundamentals/signals that suggest that those higher returns are forthcoming.


In recent times, however, the low price of natural gas has depressed the forward market for power and, as a result (with limited exceptions), those higher-risk investors have yet to see sufficient potential returns at the level required to start construction.


Moreover, even if such investors are persuaded that their equity investment is warranted, in most instances, project debt will also be needed to finance construction.


As lenders tend to be risk-averse, securing financing for uncontracted projects is likely to be a challenge in the current debt markets.


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Repowering South Mississippi Electric Power Association’s J.T. Dudley, Sr. Generation Complex

Repowering two units at the J.T. Dudley, Sr. Generation Complex added 180 MW of high-efficiency capacity to South Mississippi Electric’s portfolio. Now the cooperative can self-produce more than 50% of its electricity needs.


The J.T. Dudley, Sr. Generation Complex, owned and operated by South Mississippi Electric (SME), is located in Jones County, Miss. Originally installed in 1968 at what was then called the Moselle Generating Station were Units 1, 2, and 3, nearly identical 60-MW conventional steam plants. Units 4 and 5, General Electric (GE) 7EA simple cycle combustion turbines, were added in 1997 and 2005, respectively.


Today, the complex consists of five units capable of generating more than 500 MW. The additional capacity will pay long-term dividends to SME’s customers in the form of increased system reliability and more control over its production costs. The cooperative forecasts that as of 2013 it can self-generate 51% of its power needs; it purchases bulk power for the remainder.


The repowering project converted Units 1 and 2 into two, independent 1 x 1 combined cycle units. Both original gas-fired boilers were retired in place and the steam source for each unit was replaced with a new GE 7EA combustion turbine (CT) and a Vogt Power International (VPI) heat recovery steam generator (HRSG). The new power block is located approximately 400 feet from the existing powerhouse, with piping and cable tray routed along a three-level pipe rack between the HRSGs and powerhouse (Figure 1).



Construction began in August 2010. The commercial operation date (COD) for Unit 2 and Unit 1 combustion turbines in simple cycle operation was November and December 2011, respectively. The COD dates for Unit 2 and Unit 1 in combined cycle operation were May and November 2012, respectively.


Burns & McDonnell provided consulting, detailed design, procurement, construction management, and startup services. SME designed, procured, and installed the CT generator step-up transformer and interconnection power line, as well as the existing plant switchyard expansion.


A multi-phase and multi-contract approach was used on the remainder of the project. Beginning in August 2010, James Construction Group kicked off construction with site civil work and foundations, plus electrical and mechanical underground construction. Next, PCL Constructors followed in December 2010 with the combustion turbine and simple cycle portion of the construction project. The Saxon Group handled the final two major construction contracts: electrical and HRSG erection plus the combined cycle balance of plant, beginning work in January 2011 (Figure 2).

2. Refurbish instead of rebuild. The existing three conventional units are shown in the background (outdoor boilers with a
single steam turbine building located behind the boilers) with the two existing 7EA simple cycle combustion turbines (CTs) to
the right of the existing units. The new 7EA CTs are visible in the foreground. Between the new CTs and the three existing
boilers are the two HRSGs being assembled. Each 7EA-HRSG combination supplies steam to a single, existing steam
turbine. The HRSGs are Vogt Power International’s Enhanced Constructability Smart design. The design incorporates pressure parts, pressure part support steel, interconnecting piping, casing, and structural steel into only six shop-fabricated module boxes per HRSG, significantly reducing erection labor expense. The photo was taken during constructionin October 2011.  Courtesy: Burns & McDonnell

The engineering and design of the repowering project was performed with two goals in mind: increased operational flexibility and reuse of existing equipment, where feasible, to minimize project cost. Reused equipment included the steam turbine, boiler feed pumps, condensate pumps, condenser, cooling towers, deaerator, plant air system, and flash evaporator. Details about the major components and equipment used on the repowering project follow.

Combustion Turbines. The two new natural gas–fired GE 7EA CTs are equipped with dry low-NOx technology (DLN1) and each is rated at ~85 MW. Each CT is also equipped with evaporative cooling technology, which increases summer capacity by ~8 MW. At full load, the combustion turbines will provide a flow of 2,225,000 pounds per hour of exhaust gas at 1,022F to each HRSG (Figure 3).

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