Facts about the Proposed Additional Gas-Fired Generation Capacity CLP Power works tirelessly to deliver a safe, reliable and environmentally friendly electricity supply to Hong Kong at a reasonable cost. Our supply reliability is among the world’s best at 99.999%, and we endeavour to minimise the impact of power generation on the environment. CLP Power became the first power company in Hong Kong to introduce natural gas for power generation when the Black Point Power Station began operations in 1996. Since then, we have continued to improve our emissions performance by adopting more environmentally friendly fuel, installing emissions reduction facilities and enhancing plant efficiency. Remarkably, CLP Power’s emissions have fallen by more than 85% since 1990 while Black Point Power Station electricity demand has grown by over 80% during the same period. In the Public Consultation on the Future Development of the Electricity Market, the government announced it wanted to increase the percentage of local gas generation of the total fuel mix by 2020. The government anticipates a small number of additional gas-fired generation units will be needed to cope with the increasing use of natural gas. In response to that, CLP Power has conducted a study into the feasibility of building additional gas-fired generation unit using Combined Cycle Gas Turbine (CCGT) within the Black Point Power Station to meet the government’s environmental targets as well as future electricity demand generated by social development. The Benefits of Gas-Fired Generation Natural gas is a relatively clean fossil fuel. It emits far less sulphur dioxide (SO2) and respirable suspended particulates (RSP) during power generation than other fossil fuels. Also, the emission of nitrogen oxides (NOx) from the proposed new unit would be further reduced compared to the gas-fired units currently being used at the Black Point Power Station. Moreover, the use of coal-fired generation would be reduced when the new unit comes into operation. This would contribute further towards meeting the carbon intensity reduction targets as well as the government’s air quality objectives. The Technology of Combined Cycle Gas Turbine (CCGT) CCGT technology is now being adopted in the eight gas-fired generation units currently being used at the Black Point Power Station. The new unit will be The gas-fired generation units at the Black Point state-of-the-art and capable of achieving Power Station adopted the CCGT technology. 1 an efficiency of around 60%, higher than the existing gas units, and will further reduce emissions. CCGT consists of a gas turbine and a steam turbine. First, natural gas is burned in the gas turbine to generate electricity. During the process, the heat exhausted from the gas turbine is captured and transported to heat up water in a boiler. As a result, steam is produced to drive the steam turbine for power generation. The combined cycle design allows for greater output without the use of additional fuel. Combined Cycle Gas Turbine Process (arrangement for illustration only) 1. The combusted natural gas turns the gas turbine, which then drives the generator. 2. The spent gas, which is still very hot, is captured in Heat Recovery Steam Generator to heat up water to steam. 3. The steam turbine is driven to generate power. 4. The two turbines drive the generator together, resulting in greater efficiency. Key statistics of the new gas-fired generation unit Generation capacity (one Up to 600 MW unit) Efficiency Up to 60% in a state-of-the-art configuration Emissions NOx: equivalent to only 10% of CLP Power’s existing gas-fired generation units SO2, RSP: Far less than other fossil fuels Commencement of Expected in Q3 of 2016 construction Commercial operation At the end of 2019 Job opportunities during Around 1,000 construction 2 Environmental Impact Assessment Since last year, CLP Power has engaged expert consultants to conduct an Environmental Impact Assessment study covering more than 10 aspects, including its impact on air quality, water quality and ecology. The study assessed the project against the guidelines set out in a study brief issued by the Environmental Protection Department and included detailed field surveys on ecology and computer modelling to evaluate the potential impact on the air quality and water quality of the Deep Bay Water Control Zone and the North Western Water Control Zone. The study showed that the additional unit allows a reduction of up to 19% in nitrogen oxides (NOx) emissions and a reduction of up to about 10% in emissions of sulphur dioxide (SO2) and respirable suspended particulates (RSP), compared to the emission target of 2020. These reductions would be possible because the new unit would be operated as a priority plant once it is commissioned and will displace the sent-out from the existing coal-fired and gas-fired generation plants. In addition, no unacceptable and long-term environmental impact is anticipated during construction and operation. To minimise the impact, regular site inspections and audits would be conducted, including monitoring of air pollutants and marine water quality. Public Affairs CLP Power Hong Kong Limited April 2016 3