Proposal: Enviro-Plant Project Joint Venture Investment: Air Pollution Control Equipment for two 700 MW Fossil Fuel Power Plants in Nizhniy Novgorod Table of Contents 1. Introduction 2. Company Information 3. Control Strategy 1. Introduction 2. Electrostatic Precipitator 3. Dry Flue Gas Desulfurization 4. Natural Gas Reburners 4. Cost Considerations 5. Economic Adjustments 1. Russian Company Ventures 2. Workers 6. Future Pollution Control Strategies 1. Integrated Gasification Combined Cycle 2. Continuous Emissions Monitoring Equipment 7. Appendices 1. Russian Companies 2. Financial Outlook, 15 years 1. Introduction Owner: *(Seller) Contractor: Nizhniy Novgorod Power Authority Rensselaer Engineers & Constructors (REC) Site Location: The plant site is located in Nizhniy Novgorod, Russia; adjacent to the junction of the Volga and Oka Rivers, southsoutheast of Moscow. Project Aims: The primary goal of this venture is to retrofit two separate 700 MW power systems with the appropriate air pollution control technology, in order to reduce the NOx, SOx, CO2 and particulate emissions leaving the stacks of the plants. These control systems must maximize environmental reduction of pollutants and be economically feasible; which must therefore include purchasing much of the equipment from Russian corporations. A subsequent benefit of such company interactions will be opportunities for increased investments for America in Russia, which will inevitably stimulate economic growth and increase the pollution control technological knowledge of both parties. Due to the rapidly increasing pace of technological advancement in the energy sector, it is important to realize the trends of tomorrow and try to incorporate more environmentally advanced controls today. A five-year projection included in this proposal takes into account several ecology friendly, energy efficient strategies with various cost projections, for the Seller to evaluate and consider for future plant alterations. 2. Company Information Rensselaer Engineers and Constructors was founded in 1980 and focused on the overall design of power plants in the United States. The company has focused mainly on pollution reduction while retaining the system efficiency as much as possible. Due to the dwindling market in the United States, where most energy users already have a local power supply, future business ventures have focused on developing countries such as Egypt, India and Indonesia. A major difference between these developing countries and the former Soviet Union, is that the overall powering systems are already intact in Russia, but in need of serious upgrading. This presents a specialized problem for contractors, since there are more restrictions on the type of control equipment used. Due to this new global outlook, REC has been focusing on developing control systems to handle the large power systems typical of Russian plants for several years in order to gain a foothold in foreign markets. This will present an opportunity to promote environmental considerations in heavily polluting Russian industries, such as the power industry. Supervisor of Foreign Negotiations: Elmar Altwicker Co-Directors of Design and Relations: Katie Dusett Kenneth Huff 3. Control Strategy Proposition 1. Introduction: Today’s air pollution control technology is fairly standard for power plants of tremendous size, as are the Nizhniy Novgorod systems. Electrostatic precipitators, flue gas desulfurization unit, and catalytic reduction are usually implemented for the removal of particulates, SO2, and NOx. Some other technologies available for alternate coal systems are gasification, liquidation, and fuel cells to name a few. However, these systems are not yet equipped with the means to handle such a heavy load as is often found with Russian power plants. Projections for completion by the year 2000 are not definite, and it seems most beneficial for completion by 3 years, to implement the more steadfast methods. Some other systems would include a long design period, and may not even turn out to be compatible with the requirements of a large generating system. The systems presented below will give the required emissions, and future control strategies will be heavily based on the research and development of new systems. 2. Electrostatic Precipitator (ESP): Efficient removal of particulates from stack emissions is achievable with an Electrostatic Precipitator (ESP). An ESP is a device that uses electric forces to separate particles from the gas. The particles are charged, then attracting to plates arranged in parallel within the precipitator. Three parameters that have a direct affect on the efficiency of the system are the gas flow rate, area of the plates, and the drift velocity of the particles. Drift velocities are heavily affected by the characteristics of the electric field, including the voltage and currency maintained in the precipitator. These must be controlled in order to keep efficiencies high. Another challenge in retaining maximum performance is the electronic charge distribution, which must be kept uniform in order to ensure that the electric field is fully utilized by the particles. The collected particles are removed from the charged plates by means of an electronic rapper, which is time to strike the plates, causing them to vibrate and knock the particle cake into collection bags, or hoppers. The collected flyash, or wastes, are usually landfilled, although portions of it can be sold to cement manufacturers. Some other drawbacks include corrosion, which occurs when acidic particles such as sulfur are left on the plates. This can be partially avoided by heating the ESP during start-up and shutdown. Overall, the ESP is desirable because of the low-pressure drops, range of particle size collection, simple maintenance, and ability to handle high gas flow rates. Collection efficiencies are on the order of 99.9%, which makes the ESP a very reliable pollution control addition. Calculations Desired Reductions Uncontrolled Particulates Percent Reduction 99.9% Resultant Particulates 40494 lb/hr 40 lb/hr Total cost for ESP = $6,850,000 (each) 3. Dry Flue Gas Desulfurization (FGD): Removal of SO2 can be readily directly after the Cyclone and ESP rid the gas of most of the particulates. Dry FGD use the injection of dry limestone into the boiler, creating CaO. The particles are removed in the ESP along with the particulates as described above. For high collection efficiency in an FGD, excess reagent must be added in order to collect the SO2 properly. This increases the cost of the system, as well as the load on the ESP. Although it is more common to utilize the wet limestone desulfurization system on a plant, there are several disadvantages with respect to the waste created. In the case of wet systems, the wet limestone slurry can often be too moist to be landfilled, requiring a pond slurry on-site for disposal. Although the dry FGD system also has a large waste stream that necessitates landfilling, the installation costs are at less than that of wet systems. The waste can also be separated and sold for cement and other forms of manufacturing, however the process is quite expensive to add on. Flue gas reheating and wet chimney restructuring are not required with the dryer system. Other system controls, such as the catalytic oxidation process, are limited with such a large plant system, and restricted to cases where only a low amount of by-products are captured. Efficiencies of the dry FGD system are very high with today’s technologies, a conservative estimate being 90%. This system is also proven compatible with the ESP, which will allow high efficiency of removal. Calculations Uncontrolled SO2 Percent Reduction Resultant SO2 26542 lb/hr 90% 2654.2 lb/hr Total cost for dry FGD = $3,200,000 (each) 4. Natural Gas Reburning (NGR): For the reduction of NOx in the exiting gas, a natural gas reburning system has been integrated. Although conventionally a selective catalytic reduction (SCR) technique is applied, the costs associated with the catalyst is usually quite high, making the retrofit very expensive. NGR has a much-reduced economic impact, operating at 50-75% of SCR costs, while still maintaining reductions of over 60%. Natural gas is injected in area above where the coal is burned in the reactor. This creates a very fuel rich zone, where chemical reactions reduce the NOx immediately. Adding an N-rich substance near the final boiler reaction stage can further reduce NOx particles. Usually, the gas is only injected at 5-10% of the total power, and is only ancillary to coal as a fuel. Some major incentives for including natural gas in a Russian power system are: 1) The extremely low emissions associated with natural gas as opposed to coal. 2) Natural gas reserves in Russia are considerable, and would be relatively cheap and easily accessible. 3) As a future prospect, natural gas is highly regarded both for it’s clean emissions and amount of reserves available. Calculations Uncontrolled NOx Percent Reduction Resultant NOx 5497 lb/hr 60% 2218.8 lb/hr Total cost for natural gas reburning = $1,540,000 (each) 4. Cost Considerations An especially difficult aspect of this project, is the lack of government involvement in Russia’s environmental regulation. The lack of regulations helps facilitate the environmental exploitation that currently takes place with industry today. Any power company from the US could take advantage of the political situation and attempt to achieve economic success at the expense of the environment. REC intends to place heavy emphasis on the pollution control systems retrofitted on the NNPA stacks, which are usually much more expensive than the original plant equipment. It is the responsibility of outside investors to help promote environmental causes, for the problems in Russia will inevitable become ours in the future. With the aid of other foreign investors such as but not limited to the World Bank, this project can be funded and completed. Other private investors will be attracted to the research and design outlooks presented in the proposal, which will further offset much of the cost. 5. Economic Investments 1. Russian Company Ventures Much of the equipment can be manufactured from companies already located in Russia. This is essential to project completion, since the shipping and tariff costs are extremely high from the United States to Russia. Components for transformers, industrial switches, and other electrical parts can be purchased through Electroizolit, turbines and related parts can be found through Electrosila, and several other companies listed in Appendix A can be approached for these parts. This stimulates Russian industrial growth and creates jobs, while reducing the capital costs for the control systems. Other forms of economic investments include the subsidizing of pollution control research, with combined efforts from local engineering firms. Benefits of this venture are vast, for the NNPA power plant will have very new technologies at their fingertips, jobs will be created, and knowledge accumulated, which will improve local economy. REC requires only 15% of profits for the technology developed for five years after development, however this profit is not included in the financial analysis. Some project considerations are outlined by REC in “Future Pollution Control Strategies.” 2. Workers In order to ensure that this venture benefits the people and economy of Russia, REC has come up with several investment programs for the local economy, including a system of payment for the workers, including the coal miners. If the economy shows increased activity and growth, and this one surely will, the drawbacks of non-payment will decline, and a more aggressive business collecting policy will aid in this. Further ensuring the success of the program would be the Russian government, and the implementation of the proper tax reformation. Although REC does not plan to become politically active, it will be supportive of tax rehabilitation programs in Russia. Lack of payment is considered one of the most prominent problems for Russian economy, and in the worst case is 50%. This simply raises the electric costs for those still paying bills. The addition of pollution control strategies on the plant itself will not affect the prices, due to the investments of several groups. However, by requiring other plants to meet the same control measures, and creating pollution taxes would be the ultimate solution to the heavy pollution problems in the area. 6. Future Pollution Control Strategies 1. Integrated Gasification Combined Cycle (IGCC) The IGCC system turns coal into a gas, then removes pollutants such as particulates, SO2, NOx, etc. This makes the final emission gas much cleaner than if the coal was burned as a solid. The solid coal is placed in an oxygenblown gasifier, which turns it into a gas. Standardized control equipment, such as the FGD, requires cooler gas for operation, which decreases the overall system efficiency, causing increased operations costs. In the IGCC system, a hot gas control system is utilized to clean up the gas without first cooling it. The cleanup system consists of a moving bed of oxidizing material, which removes both SO2 and particulates. Clean gas then exits the control system, enters a combustion turbine, and creates electricity. The exhaust from the first turbine is recovered, and enters a second steam turbine. This dual turbine system greatly increase the efficiency of the overall power process. Reductions for several pollutants are shown in the table below. Pollutant Percent Reduction CO2 35% NOx 90% SO2 and particulates 99% More economic benefits are the products of the process, which include sulfur, and solidified slag, which are both marketable. This income can help offset the overall installation costs of such a system. Other benefits include the capability of handling power demand fluctuations and a range of coal types. Paramount to NNPA is the installation flexibility, for the IGCC can be integrated onto existing plants relatively easily. The IGCC system is also compatible with fuel cell system, another power alternative making great technological strides today. Although fuel cell development has not reached power plant load capacities yet, much capital has been invested in researching this alternative, as it has incredibly low emissions. Overall, the IGCC system, and several other related systems would greatly benefit the world of power generation, and research and development in such blossoming technologies is worthwhile and necessary to continue lowering emissions. Due to the level of research and development in Russia, it seems likely that with initial boosts, they will continue to pave a technological path of their own. REC considers investing in this type of research is an aggressive, intelligent choice for this project, and plans to implement and heavily promote it. 2. Continuous Emissions Monitoring Equipment (CEM) A continuous monitoring system is a necessity for pollution control. To minimize human error in sampling, as well as greatly enhance the knowledge NNPA will have about the day to day variances in plant operation as power loads change, and other problems arise, is a necessity. Due to the wide variety of individualized monitoring systems, it is the view of REC that this system is developed by Russian engineers and scientists as part of the research and development funded through the plants’ profits, and the profits of other joint venture companies. The system will help identify problem areas and point out any significant pollution violations. Appendix A Russian Power Manufacturers Company Products Elektrosila Water-wheel generators, turbogenerators, AC/DC electrical machines, low-voltage electrical machines Steam, hydraulic, and gas turbines Steam and waste-heat boilers, vessels, heat exchangers High-pressure valves Boilers, pipelines Leningrad Metal Works Podolskiy Machine-Building Plant Chekhovenergomash Belgorod Power Plant Engineering Works Barnaul Boiler Plant Uralelektrotyazhmash Uralgidromash Rotor Blade Plant Steam and hot-water boilers High-voltage equipment, electrical machines, transformers, semiconductor converters Axial-flow, mixed-flow, centrifugal, and immersion pumps Rotor blades for steam and gas turbines