State-of-the-Art Technologies for Reliable/ Sustainable Coal Fired Power Plants

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State-of-the-Art Technologies for Reliable/ Sustainable Coal Fired Power Plants September 6 th, 2017 Hiroyuki OTANI Board Director Managing Executive Officer President,Resources, Energy&Environment Business Area

Table of Contents 1. Introduction of IHI Group Business 2. Overview of IHI Boiler Business 3. State-of-the-Art Technologies for Reliable/ Sustainable Coal Fired units 4. Summary 2

1. Introduction of IHI Group Business 3

1-1. Company Profile IHI Head Office, Tokyo The First Steamship Built by Japanese Private Company Tsu-un maru. Founded : A.D.1853 Head Office : Tokyo, JAPAN Capital : JPY 107.165 mil (USD 975 mil) Net Sales : JPY 1,486,332 mil (USD 13,512mil) Employees : 29,659 Works in Japan : 7 Branches / Sales offices in Japan : 16 Overseas offices : 13 URL : www.ihi.co.jp (IHI Corporation) Information is on consolidated basis as of March 2017. 4

1-2. Business Areas Resources, Energy & Environment (Boiler, Gas Turbine/Gas Engine, LNG Terminal, Process Plant,etc.) Aero Engines, Space & Defense (Jet Engine, Rocket) Resources, Energy & Environment Social Infrastructure & Offshore Structure (Bridge, Transportation System, Security, etc.) Aero Engines, Space & Defense Social Infrastructure & Offshore Facilities General-Purpose Machinery (Compressor, Separator, Turbo charger, etc.) Industrial Systems & General-Purpose Machinery Industrial Systems (Steel Manufacturing Furnaces, Heat/Surface Treatment Equipment, Logistics Systems, Material Handling Equipment, etc.) 5 5

1-3.Overview of Resources, Energy & Environment Business Resources, Energy & Environment Gas Process/ Storage Plant LNG Receiving Terminal (EPC Service) Storage Tank (LPG, LNG, Helium) GAS Turbine Gas Turbine (for base load & peak cut) Boiler AQCS (Air Quality Control System) PC Boiler Oil / Gas Firing Boiler / HRSG DeNOx/DeSOx System CCS System IHI Enviro Corporation IHI Plant Engineering Corporation Jurong Engineering Ltd. Diesel United Ltd. NIIGATA POWER SYSTEMS CO., LTD. 6

2. Overview of IHI Boiler Business 7

2-1 Activity in USA References of IHI Sub-Bitu. Coal fired Boilers Client : Sandy Creek Energy Associates, L.P., USA Unit : Sandy Creek Turbine Output : 998.5MW(net) Boiler Capacity : 2,852 t/h Steam Conditions: 26.9MPa, 585/583 o C Fuel : Pulverized Coal 100% Sub-bituminous Coal (PRB Coal) Commercial Operation : 2013 8

2-2 Activity in German Client : Trianel Kohlekraftwerk Lünen GmbH & Co. KG Turbine Output : 1 x 813MW (Gross) Boiler Capacity : 1 x 2,225 t/h Steam Conditions(@Boiler outlet): 28.76MPa, 600/610 o C (Ultra Super Critical) Fuel: Pulverized coal (Bituminous Coal) Commercial Operation:2013 The Coal Top Plant Award Winner of POWER Magazine,2014 9

2-3 Activity in Malaysia Jimah No.1 & 2 Site Location for Jimah East Power Client : Jimah East Power Sdn. Bhd, Malaysia Photo is provided by J-POWER(EPDC) Unit : JEP Unit1 and Unit2 Turbine Output : 2 x 1,064MW (Gross) Boiler Capacity : 3,025 t/h Steam Conditions: 27.9MPa, 603/612 o C (USC, Two-pass Type) Commercial Operation (Scheduled) : 2018 (Unit1), 2019 (Unit2) General Arrangement 10

2-4 Activity in Morocco Client: Safi Energy Company Turbine Output: 2 x 693MW (Gross) Boiler Capacity: 2 x 1,923 t/h Steam Conditions: 26.5MPa, 603/602 o C (Ultra Super Critical) Fuel :Pulverized Coal (Bituminous Coal) Commercial Operation:2018 11

3. State-of-the-Art Technologies for Reliable/ Sustainable Coal Fired units 12

STEAM TEMP. [ o C] STEAM PRESS. ( MPa ) Thermal efficiency improvement (Relative%) 3-1. IHI USC(Ultra Super Critical) Boiler A pioneering and leading company in Ultra Super-Critical (USC) coal-fired boiler, 600 550 500 450 400 30 25 20 15 10 5 482 485 450 4.1 STEAM TEMP. 538 Tachibana-wan No.1 16.6 566C 24.1 Isogo new No.2 STEAM PRESS. 55 60 65 70 90 95 Year of Initial Operation ~ 31.0 593 o C 610 o C Hekinan No.3 ~ 2000 14 620 o C 6 5 4 3 2 1 0 Tachibana-wan No.1 25.0 MPa 600/610 o C Isogo new No.2 26.7 MPa 600/620 o C Isogo new No.1 26.6 MPa 600/610 o C Base:538/566 o C (Conventional Super-Critical Plant) 630/630 o C 620/620 o C 610/610 o C 600/600 o C 593/593 o C 24.1 24.5 29.4 34.3 Steam pressure (MPa) - The largest capacity- - The highest steam conditions - Tachibana-wan No.1 Takehara new No.1 630 o C Isogo New No.2 Lünen 27.6 MPa 597/609 o C Capacity: 1,050MW 2 S H 3 S H F u r n a c e F u r n a c e F i 2 n R a H l S H H R A 1 R H 1 E C O 1 S H 2 E C1 O E C O Steam Condition: 600/620 o C 13

3-2. A-USC Development of A-USC Technology A-USC (Advanced USC) technology has been going to develop for improvement of thermal cycle efficiency from 42% to 46% (net, HHV). IHI has participated in the Japanese national project from 2008. We has established material evaluation, manufacturing technology of Ni-based alloy during first 5 years and we has fulfilled boiler components test with 13000hr exposure under 700deg C steam condition at commercial coal fired boiler by 2016. From this fiscal year, IHI is part of new national project to develop maintenance technology for establishment of more proven condition to the future commercial units. Mock-up model of SH header Boiler component test facility Heating element during testing 14

3-3. Woody Biomass Utilization Woody Pellet High Ratio Co-firing Features - CO 2 reduction according to number of pellet mill can be achieved - Achievable of CO 2 negative with CO 2 capture technologies such as Oxyfuel and PCC - Possible utilization of both coal and woody pellet with minor modification Verification with 149MW Power Plant in Japan (2015) One coal mill (total 4 mills) was retrofitted to a pellet mill equipped with a flow acceleration ring. Kamaishi coal fired power plant : 149MW (Nippon Steel & Sumitomo Metal Corporation) 15

3-4. Solution for Palm Oil Industry Palm Oil Industry + IHI s solutions Features - OPT pelletize with IC-reactor can be an independent system. - Deashed EFB pellet can be burnt in PC boilers and CFB with higher combustion rate/single fuel firing. - IC-reactor can treated POME and can be satisfactory in the water quality regulation and can produce methane for power generation. Activities in Malaysia (2015 - ) OPT palletization project is ongoing and toward to the business stage. EFB pellet production is under the early stage of business and they will be utilized in commercial power plant. POME treatment project is running in demonstration phase. Pilot equipment for OPT pellet EFB pellet production facility POME treatment pilot facility 16

3-5. Oxyfuel Combustion Oxyfuel Combustion Features Air N 2 Coal O 2 Boiler Flue Gas Treatment Non-condensable Gases CO2 - Lower CO 2 capture cost for full capture - Byproduct reuse such as N 2 resulting from air separation for O 2 - Achievable of CO 2 capture rate up to 98% - Applicable to both existing and new power plants Air Separation Unit Flue Gas Recirculation CO 2 Processing Unit H 2 O Callide Demonstration Project in Australia (2012-2015) The world s only-one oxyfuel power plant for CO 2 capture from coal fired power plants. Achieved over 10,000 hours oxyfuel operation without serious technical barrier Ready for large scale commercial plant Callide A Power Station Owned by CS Energy 4 x 30 MWe Steam : 136 t/h at 4.1MPa, 465 o C Commissioned : 1965 69 Refurbished : 1997/98 Placed in storage in 2002 17

3-6. PCC Technologies Post Combustion Capture (PCC) (Chemical Absorption System) Coal Air Boiler Flue Gas Treatment N 2, H 2 O, O 2 Features - Flexible design for both full capture and partial capture - Sequential scale up by increasing the number of PCC module - Applicable to not only Coal fired boiler but also the other use such as NG-GTCC and Biomass power plant. - Applicable to both existing and new power plants CO 2 CO 2 Capture PICA Project (PCC-IHI-CSIRO-AGL Project) in Australia (2014 - ) Demonstration for Post-combustion capture of CO2 (PCC) technology at AGL Loy Yang A brown coal fuelled power station in Victoria of Australia. Achieved 5,000 hours operation with IHI s original sorbent developed by 20t/day pilot plant in Aioi, Japan To realize large scale commercial plant PICA plant: 0.5t/day in Loy Yang A Power Station 18

3-7. Twin IHI Gasifier (TIGAR ) TIGAR is ready to commercialize TIGAR is being developed with the support of METI and NEDO TIGAR leads to Hydrogen Society in Japan What is TIGAR? TIGAR is a gasifier suitable for low rank feedstock like lignite and biomass. TIGAR has been developed based on the fluidized bed technologies of which we have extensive experience and knowledge. Using steam as gasifying agent, H2 rich syngas can be obtained. Hot Bed Flue Gas Circulation TIGAR Syngas CO2-Free Hydrogen Supply Chain Coal Biomass CO2 FCV CO2 Free/ Negative H2 Household Fuel Cell Fuel for Power Station CO2 Free/ Negative NH3 as H2 carrier Urea, Fertilizer Steam Currently we are in the final stage of development Commercial Stage 50 ton/day prototype plant 6 ton/day pilot plant ~2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Air Business Model Example Business Model A Business Model B Feedstock Biomass Lignite with CCS TIGAR Capacity Product 200 ton/day as feedstock CO2-free-H2 5,000 ton/year as H2 1000 ton/day as feedstock CO2-free-NH3 200,000 ton/year as NH3 End use FCV, Fuel Cell Power plant, Urea 19

3-8. NH3 utilization and co-combustion technology IHI focuses on ammonia (NH3) as hydrogen carrier and CO2 free fuel to utilize on coal firing boiler in the hydrogen energy based society. IHI participated in SIP (Strategic Innovation Promotion Program) which is a Japanese national project from this fiscal year to develop NH3 co-combustion technology in the coal firing boiler. Development plan of NH3 co-combustion in SIP Boiler capacity : 1000MW NH3 co-combustion rate : 20% (HHV basis) 2017: Co-combustion test at combustion test facility Feasibility study for Ammonia storage system 2018 : Feasibility study for co-combustion system of boiler plant Reduction of CO2 emission Boiler capacity : 1000MW NH3 co-combustion rate : 20% (HHV basis) 1.26 million ton CO2 per year Combustion test facility Global Ammonia Network 20

4. Summary 21

4. Summary Large Scale Power Plant Technology Improvement High Press./Temp. Steam Technology Application of Renewable material resources We are Confident that IHI s Coal fired power Plant technologies will fit to Best-mix for world wide energy requirements. 22

Thank you for your attention!