Welcome SAFETY FIRST Safety tip for the day TAMPA ELECTRIC GENERATION • BIG BEND STATION 1900 MW 4 Coal fired steam units •BAYSIDE POWER STATION Repowered NGCC One 3 on 1 One 4 on 1 •POLK POWER STATION One IGCC Two Peaking CT’s •PHILLIPS POWER STATION Two slow speed diesels TOTAL CAPACITY (approx) 1800 MW 650 MW 36 MW ________ 4400 MW POLK POWER STATION • UNIT 1 IGCC, Base load on syngas, intermediate on oil Combined cycle, GE 7F, 7221 192MW GE D11, steam 120MW Dual fuel, Syngas/Distillate Oil DOE Clean Coal Technology co-funding $120M In service 1996 •UNIT 2, 3, 4 & 5 Simple Cycle CT, Peaking Simple cycle GE 7FA+E, 7241 165 MW each 2 & 3 Dual fuel, Nat gas/Distillate Oil; 4 & 5 Nat Gas only Unit 2 in service 2000, Unit 3 2002, Units 4&5 2007 •Total site over 4000 acres (previously mined for phosphate) 750 acre cooling pond 80 Tampa Electric employees POLK 1 – Technology Summary • Gasification technology originally developed by Texaco, now owned by General Electric • Oxygen blown, slurry fed, entrained flow gasifier • Operating pressure 400 psi nominal • Gasifier vessel refractory lined (largest built) • Radiant plus convective syngas coolers for heat recovery • Single train configuration (one gasifier supplying one CT) • CT is GE 7F w/ MNQC combusters, larger 1st stage nozzle • Diluent N2 plus syngas saturation for NOx control • Modest air extraction rate from CT to ASU • Feedstock is 2200 tons/day coal and petroleum coke blend • ASU by Air Products, 2100 tons/day oxygen production • Sulfuric acid plant by Monsanto, (unique to Florida) • Acid gas removal via MDEA and COS hydrolysis GASIFIER STRUCTURE COAL SILOS N AERIALSLURRY PHOTO PREPARATION SULFURIC ACID PLANT OXYGEN PLANT YOU ARE HERE UNIT 3 CT UNIT 2 CT UNDER CONSTRUCTION CONTROL ADMINISTRATION , HRSG 1 CT STEAM UNIT TURBINE Diluent Nitrogen 5250 TPD MDEA Acid Gas Removal Acid Gas H2S + CO2 To Sulfuric Acid Plant Saturator Overall Flowsheet Cooling Water COS Hydrolysis Cold Box (COS 55 psig Steam H2S) Oxygen LP Steam 2100 TPD 400 psig Steam Dryers Main Air Compressor 32 MW Product Compressors 18 MW Gasifier Coal & Pet Coke 2300 TPD Water & Recycled Char 7000 KSCFH Clean Syngas BFW Final Filter Water Scrubbers Combustor Clean Stack Gas 450 gpm Slurry Rod Mills Backup/Startup Distillate Fuel Compressor Air Turbine Combustion Turbine Generator 192 MW Char & Cl Radiant Syngas Cooler Heat Recovery Steam Generator (HRSG) Raw Syngas Convective BFW Pump Syngas Cooler Slurry Tanks Slurry Pump Generator 123 MW 1600 psig Saturated Steam Economized Boiler Feedwater Steam Turbine Condenser Lockhopper Char & Slag Condensate Pump Cooling Water IGCC DRIVER LOW EMISSIONS FROM LOW COST FEEDSTOCKS FOR LOW COST ELECTRICITY POLK 1 PERFORMANCE ENVIRONMENTAL • Polk rated the “Cleanest Coal Fired Power Plant in North America” by the Energy Probe Research Foundation (total emissions from 2002 TRI data) LOW EMISSIONS Typical Emissions (Lb/MMBTU) Polk (Permit) Polk (Steady State) Expected New IGCC SO2 0.14 0.12 0.02 NOx 0.055 0.04 0.02 (w/SCR) Particulate 0.007 Mercury NA <0.004 NA (New IGCC values are basis 8,800 hhv btu/kwh net) 0.007 90% removal OTHER ENVIRONMENTAL ADVANTAGES •Beneficial Reuse of Sulfur – H2SO4 at Polk •Beneficial Reuse of Slag •Low Water Use (2/3 that of PC unit) •Minimal solid waste (no gypsum from FGD) •Zero Process Water Discharge ENVIRONMENTAL OPPORTUNITIES Mercury - Cost-Effective Removal on IGCC using small activated carbon bed ( $0.25/MWh vs. $3.10/MWh for PC) • Testing done at Polk • Commercially at Eastman to 95+% Other Volatile Metals – Will also be removed by carbon bed ENVIRONMENTAL OPPORTUNITIES CO2 Removal Solvents used for sulfur removal can also remove CO2 (more cost effective due to <1% volume) For New Solid Fuel Power Plants (EPRI estimates) 25% Higher COE with IGCC 50% + Higher COE with PC CO2 Sequestration Saline aquifer injection – USF feasibility study FUEL FLEXIBILITY • Polk has operated on over 20 different fuels including: Coals Coal Blends Coal/Pet Coke Blends Coal/Coke/Biomass Blends • Slagging gasifier requires somewhat higher fusion temps (Polk targets 2350 – 2700 F T-250 temps) • Low rank fuels can be used in slurry fed gasifiers, but hurt efficiency • Power block can operate on syngas or distillate oil LOW COST FEEDSTOCKS RELATIVE FUEL PRICES AT POLK • 40% Coal/60% Pet Coke Blend 1.0 • Pet Coke 0.7 • Coal 1.5 • Natural Gas 3.6 • Low Sulfur Oil 6.0 RENEWABLE FUELS BIOMASS CO-UTILIZATION TESTS • Eucalyptus Biomass Test - December, 2001 • Bahiagrass Biomass Test - April, 2004 (Bahiagrass Harvest and Storage Test started approximately one year prior) • No impact on syngas quality or emissions • Minor issues with material handling REPRESENTATIVE COSTS Fuel processing costs per mmbtu fuel input (Excludes combined cycle costs) Fuel $1.62 O&M $0.96 “Controllable Expense” $2.58 A&G, Depreciation, Taxes, etc $1.06 Solid Fuel Processing Cost $3.64 For Natural Gas Comparison, Multiply by heat rate ratio: $3.64 X 9,500 / 7,000 = $4.93 Current Natural Gas Price: $8.00 +/- KEY AVAILABILITY STATISTICS Polk Unit 1 IGCC Factors CT On Syngas Early CT Fleet Issues CT Availability Early CT Fleet Issues Hours / Period Hours x 100 100 90 80 70 60 50 40 30 20 10 0 96 97 98 99 00 01 Year 02 03 04 05 06 TEC’s ADVANCMENTS of IGCC • Refractory life extension to 3 years • Successful integration of fines recycle • NOx below 15ppm with diluent N2 and saturation • Successful zero process water discharge system • Air extraction/integration with GE 7F turbine • IGCC use with sulfuric acid plant with variable % • Leader in clean coal power production > 13M gwhrs • IGCC ambassadors, 4000+ visitors PERCEPTIONS AND MISPERCEPTIONS REGARDING IGCC • HIGHER INSTALLED COST – TRUE Current estimates are 10 – 20% higher than SCPC unit with scrubber and SCR. This is offset by lower fuel cost and reduced emissions. • NO SINGLE SUPPLIER OR OVERALL PERFORMANCE GUARANTEE – NO LONGER TRUE Alliances GE/Bechtel and Conoco/Phillips-Fluor are offering comprehensive EPC contracts with performance guarantees. • NO FINANCIAL REWARD FOR SUPERIOR ENVIRONMENTAL PERFORMANCE – SOMEWHAT TRUE IGCC is capable of lower emissions than other coal based technologies and will be the most cost effective at mercury and CO2 removal. Anticipated environmental regulations will define financial value. PERCEPTIONS AND MISPERCEPTIONS REGARDING IGCC (cont’d) • IGCC HAS LOW AVAILABILITY – NOT TRUE Overall reliability of the power block is higher than other “coal-fired” units (95%). The dual fuel capability of IGCC adds significant value. Gasifier reliability (currently low 80%), will be higher for next generation, dual train plants. • IGCC IS EXPERIMENTAL AND REQUIRES UNIQUE SKILLS – NOT TRUE Gasification has been used since the 1800’s and there are hundreds of gasifiers operating worldwide. The first generation IGCC plants have now been in service for 10 years. Tampa Electric (a modest size electric utility) has successfully operated and maintained the Polk Unit 1 IGCC since 1996. POLK UNIT 6 • TEC is planning for the addition of a 630 MW IGCC unit in 2013. • Preliminary engineering and preparations for permitting and regulatory approval are in progress. • TEC has been awarded a $133.5M tax credit under the Energy Policy Act of 2005 for Polk 6. • Expected configuration is two gasifiers feeding two CT’s with one ST. Minimum scale up (same size gasifiers as Polk 1). • Allowances made in design for addition of CO2 capture and sequestration equipment.