Adoption of USC CFB Technology to Achieving Lower Cost Generation and Environmental Sustainability. Gerd Heiermann & Douglas Spalding

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Adoption of USC CFB Technology to Achieving Lower Cost Generation and Environmental Sustainability. Gerd Heiermann & Douglas Spalding 14 November 2014 EEC Conference Delhil

Doosan and India a Total Solution Provider Doosan returns more benefit and value to clients in India as a total solution provider integrating state-of-the-art OEM technology and aftermarket retrofit & service with proven & professional manufacturing. BOILER manufacturer TURBINE manufacturer Remote Monitoring Service (ICT) EPC Provider Plant Diagnosis Service Operating & Maintenance Service RMS : Remote Monitoring Service PDS : Plant Diagnosis Service ICT : Information & Communication Technology Retrofit Service 2

Part of the Doosan Group Doosan Group Doosan Heavy Industries & Construction Business Groups Casting and Forging Nuclear Boiler Turbine Turnover (2013) EPC Employees (2013) Doosan Group 14.4 Billion 43 000 Doosan Heavy Industries & Construction 12.8 Billion 7300 4 Water

References References to date Supercritical PC boilers 52,321MWe Subcritical CFB Subcritical PC boilers 123,086MWe Turbines 21,528MWth 60,000MWe

Doosan Lentjes Product Lines Tisova, 100MWe Czech Republic CFB Doosan Lentjes is the global center of excellence for engineering, procurement and construction for CFB, WtE and APC having its own R&D center: Circulating Fluidised Bed Top tier level CFB OEM technology References : 113 units (22 GWth, max. 280 MWe) WtE Waste-to-Energy Top tier WtE OEM technology References : 77 units (9 mill t/a, max. 35 t/h) Chute-to-stack or full turnkey supply solutions REC Harlingen, NL, 280.000 t/a; 1 line APC Oroszlany, Hungary 240MWe Wet Stack Air Pollution Control Various FGD portfolio OEM technology References : Wet FGD : 205 units (71 GWe, max. 1,000 MWe) Seawater FGD : 10 units (6 GWe, max. 700 MWe) CFB FGD : 87 units (13 GWe, max. 305 MWe) SCR DeNOx Fabric Filters and Electrostatic Precipitators Doo san Lentj

CFB Similarities Subcritical to USC CFB USC CFB Cycle primary difference from the Subcritical cycle shown is the introduction of once-through technology Adopting Once Coal Fuel Oil Electrical Generator Water Process Steam Supply Supply Output Through Posiflow Deminerali water Turbine zing vertical combustor G tube technology from Condenser Sea water PC boilers for the Electrical Cooling water/steam circuit Aux. tower HP LP BFP Conden Cooling allows the USC CFB Heaters Heaters sate Water Pump Pump design to benefit from higher efficiency Design of solid loop CFB similar to subcrit Boiler CFB boiler Island Ash Limestone Fuel Silos Furnace Back pass Fabric Filter ID fan Stack 7

USC CFB Lower Cost Than USC PC Where APC is Needed Integrated Environmental Protection resulting in lower cost generation with less APC. Coal Air Limestone CFB boiler Integrated Environmental Protection Flue Gas Typical Emission Limits Boiler Feedwater SO2 120 mg/nm3 CO 50-250 mg/nm3 NOx 100-300 mg/nm3 Dust 20-50 mg/nm3 Steam Ash Coal Air Boiler Feedwater Flue Gas Conventional boiler Steam Ash Flue gas desulphurization Limestone Gypsum DeNOx plant SCR Stack 8

USC CFB More Compact Than USC PC USC CFB is more compact than PC (with FGD) 600MW USC CFB Reference (Indonesian Sub-bituminous) Design Footprint = 4950m2 H = 70m L = 110m W = 45m 600MW USC PC Boiler (Indonesian Subbituminous) Footprint = 5440m2 includes FGD@ 900m2 (Based on Dongbu Green 2x580MW)

CFB More Suited to a Wide Array of Fuels and Fuel Switching. Carb- Sulp Fuel Experience on % -hur % Where fuel switching covers a wide range from high CV world traded bituminous to low cost high ash, high moisture or high slagging coals, CFB offers capex, reliability and fuel saving advantages over PC fired units Ash % Moist -ure % H.V. MJ/ kg Biomass 20 0.03 2 40 15 Oil Shale 13,8 0,4 73,7 5,0 4,95 Anthracite Culm 44,8 0,8 45,1 15,0 6,85 German Brown Coal 27,2 1,7 7,0 52,8 9,17 Gujarat Lignite 43,3 < 2,5 19,0 24,0 16,50 Kentucky Coal 63,7 4,0 12,9 4,7 20,05 Anthracite 59,6 1,8 25,2 10,0 20,70 Petcoke / Texas 82,0 4,5 2,7 7,3 31,80 10

USC CFB Concept Development - Economics 600 MW gross is targeted for USC CFB development and Korean demonstration Demonstration plant economic modelling by 3rd party confirmed 2 year payback advantage dominated by CFBC fuel flexibility advantage NPV $m* USC PC USC CFB 153 431 IRR* % LCOE* $/MWh 5.6 6.5 46.54 42.48 Payback* Years 15 13 Analysis assumed, 30 years operation from COD Financing based on Gov t funded not project financed model. (No interest during construction, NPV calculated from COD and not from NTP) Similar plant efficiencies/utilisation of PC and CFB assumed NPV difference based on fuel savings for USC-CFB comparing USC-PC6000kcal@97$/t vs USC-CFB-4250kcal/kg@59$/t (i.e.-15%$/gcal basis) Analysis needs to be qualified for Indian market requirements/conditions 11

USC CFB Concept Development Doosan has been developing a USC CFB product since 2012 in response to an emerging need for fuel flexible lower cost generation USC CFB builds on the modular design available for Subcrit CFB from 50-300MWe Concept study of modular design for USC/SC units up to 600MW and over completed in 2013 6 to 8 cyclone design foreseen dependent on output, fuel and site conditions.. V USC CFB Class 6-8Cyclone Design Volumetric Flow Proven 300MW Class 4 Cyclone Design 150MW Class 2 Cyclone Design 50-100MW Class 1 Cyclone Design 50 100 Sub-critical 200 300 400 Super-critical 500 600 Size MWe 12

USC CFB Development Plan 1 Doosan development plan go-ahead given August 2014. This will comprise, Integration of USC PC and CFB technologies for better performance and emissions control Scale up of the combustor and introduction of once through vertical furnace tube technology based on Doosan Babcock s Posiflow design Value assessment of Fuel flexibility to Capex and whole life cost. V USC CFB Class 6-8Cyclone Design Volumetric Flow Proven 300MW Class 4 Cyclone Design 150MW Class 2 Cyclone Design 50-100MW Class 1 Cyclone Design 50 100 Sub-critical 200 300 400 Super-critical 500 600 Size MWe 13

USC CFB Development Plan 2 Development plan will also include, Validation of analytical results of heat transfer and gas/solid flow pattern Adoption of compact design approach from 150MW class. Design optimization for maximized fuel flexibility value and reliability 14

4 CYCLONE RPM USC CFB Modularized 2 cyclone model to be adapted to 4 cyclone model = + USC CFB requires different platform however utilizes key modules of 4 cyclone CFB 15

600MWe USC CFB Demonstration Project Requirement Unit Size (MWe gross) Location / Cooling / Arrangement Fuel Indonesian LRC GCV (kcal/kg) Main Steam Temperature (oc) Main Steam Pressure (Barg) Reheat Steam Temperature (oc) Boiler Thermal Efficiency (%HHV) Boiler Availability (%) Outlet SOx (ppm@6%o2) Outlet NOx (ppm@6%o2) Outlet Dust (ppm@6%o2) Target Value 600 Coastal / Sea Water cooled, 6 Cyclones 4250 610 280 621 >85 >90 <50 <50 <15 16

660MWe USC CFB Concept Design for India Requirement Unit Size (MWe gross) Location / Cooling / Arrangement Indonesian Coal GCV (kcal/kg) Local Sourced Biomass GCV Main Steam Temperature Main Steam Pressure (Barg) Reheat Steam Temperature Boiler Thermal Efficiency Boiler Target Availability (%) Outlet SOx (ppm@6%o2) ** Outlet NOx (ppm@6%o2)** Outlet Dust (ppm@6%o2)** Target Value 660 Coastal / Sea Water cooled, 6-8 Cyclones 4250 3600 600oC 280 600oC >85 (%HHV) >90 <120 <100 <50 17

Conclusions Doosan Lentjes is currently scaling up its CFB boiler capability to 600MWe class for demonstration in South Korea with target steam conditions at UltraSupercritical levels. The plant design will couple CFB combustion design with proven supercritical boiler design. The USC CFB concept evaluated for demonstration will operate at 'state of the art efficiency levels and fuel flexibility that delivers a better payback than USC PC, resulting in lower cost generation. The Indian USC CFB design concept would target 660MWe unit sizes with application to coastal locations where whole life cost savings from fuel arbitrage and APC avoidance will deliver lower cost generation. The design concept for India may also accommodate locally sourced biomass for co-firing, supporting a more environmentally sustainable power plant solution. 18

Thank you gerd.heiermann@doosan.com douglas.spalding@doosan.com