Results and estimations of the 5,000 Hour Durability Test at the Nakoso Air Blown IGCC plant (including other activities)

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Results and estimations of the 5,000 Hour Durability Test at the Nakoso Air Blown IGCC plant (including other activities) November 3, 2010 Tsutomu Watanabe Clean Coal P R&D Co., Ltd. Copyright Clean Coal P R&D Co., Ltd

View of IGCC Demonstration Plant HRSG Gasifier GT, ST & Generator Gas Clean-up Copyright Clean Coal P R&D Co., Ltd

Schematic Diagram of IGCC Coal Gasifier Porous Filter Gas Turbine Wet Gas Clean-Up Combustor Gypsum recovery Air Steam Turbine Char G Slag Air M Gasifier HRSG Stack N 2 O 2 ASU Boost-up Compressor (For coal and char transport N2) Copyright Clean Coal P R&D Co., Ltd

Main Feature of Air-blown IGCC Net thermal efficiency is higher than other IGCC designs. Carbon conversion rate is more than 99.9%. Gasifier design requires no refractory maintenance. Operation is to be stable. Copyright Clean Coal P R&D Co., Ltd

Specification of IGCC Demonstration Plant Capacity Coal Consumption System Gasifier Gas Treatment Gas Turbine 250 MW gross (metric) approx. 1,700 metric t/day Air-blown & Dry Feed Wet (MDEA) + Gypsum Recovery 2,200 F-class (50Hz) Efficiency (Target Values) Gross Net Flue Gas SOx 8 ppm Properties NOx 5 ppm (Target Values) Particulate 4 mg/m 3 N 48% (LHV) 46% (HHV) 42.5% (LHV) 40.5% (HHV) (16%O 2 basis) Copyright Clean Coal P R&D Co., Ltd

Status of Targets & Accomplishments Safe and Stable Operation 250MW 250MW Target Past years This year s activity Future years reported This presentation Long Term Continuous Operation >2000hr Net Thermal Efficiency >42.5% (LHV basis) 42.9% 2039hr (1568+471hr) (2) (3) Carbon Conversion Rate >99.9% >99.9% Environmental Performance SOx <8ppm NOx <5ppm Dust <4mg/m3N 1.0ppm 3.4ppm <0.1mg/m3N Coals Bituminous Sub-bituminous Start-up Time <18hr 15hr Chinese, PRB, Indonesian(A) Copyright Clean Coal P R&D Co., Ltd Indonesian(B), PRB Expand coal Flexibility Minimum Load 50% 50% L load test evaluation Load Change Rate 3%/min 1.2%/min 2.4%/min Higher load change rate evaluation Durability & Maintainability Economy estimation Evaluate during 5000hr test Less than or equal to PCF p generation cost (1) 5013hr(max1948hr) Construction cost and operation cost was estimated. (2) Maintenance interval evaluation Maintenance cost evaluation

Main contents of this presentation (1) Results of 5,000 hour durability test (including the following contents) Flexibility in coal type test Load Change rate test (2) This year s other activity Additional flexibility in coal type test Economy estimation (3) Test plan in the next year and after Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -2 Target was accomplished (5,013hr operation) within one year. Flexibility in coal type test and load change rate test were also conducted during the test period. Forced outages were experienced in several times due to mainly auxiliary facility incidents in the former period while almost continuous operation were achieved in the latter period. The causes of the auxiliary facilities incidents were identified and remedy measures were established. Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -3 Flexibility in coal type test-1 : Contents of coals Gross Calorific Value (air dry) Total Moisture (as received) Total Sulphur (air dry) kj/kg wt% wt% #1 (Design coal) Chinese Shenhua Coal Jan, 2009 27,120 15.4 0.25 #2 North American PRB coal Feb, 2010 26,670 25.3 0.39 Indonesian Coal #3 (A) Mar, 2009 26,370 21.7 0.25 #4 (B)* Sep, 2010 23,010 29.7 0.12 Proximate Analysis (air dry) Inherent Moisture Fixed Carbon Volatile Matter Ash wt% wt% wt% wt% 7.5 51.3 32.3 8.9 8.0 47.4 39.1 5.5 Fusibility of Coal Ash Flow Temperature deg C 1225 1420 7.9 45.2 42.5 4.4 1260 17.1 37.8 41.6 3.5 1230 Copyright Clean Coal P R&D Co., Ltd (*Conducted after the durability test)

(1) Results of 5,000 hour durability test -4 Flexibility in coal type test-2 : Generation output MW MW MW MW Gross output MW GT ouput MW ST ouput MW Syngas MJ/m3N(LHV) #1 Chinese Shenhua coal Design coal 300 6.0 200 Gross output 250MW 4.0 100 2.0 0 0.0 30-Jan-09 31-Jan-09 1-Feb-09 2-Feb-09 3-Feb-09 300 #2 North American PRB coal Maximizing test 6.0 200 100 Gross output max 200MW 0 4.0 11-Feb-10 12-Feb-10 13-Feb-10 14-Feb-10 15-Feb-10 #3 Indonesian coal (A) 300 6.0 200 Gross output max 170MW 4.0 100 2.0 0 0.0 14-Mar-09 15-Mar-09 16-Mar-09 17-Mar-09 18-Mar-09 #4 Indonesian coal (B) 300 200 100 0 17-Sep-10 18-Sep-10 19-Sep-10 20-Sep-10 21-Sep-10 4 MJ/Nm3(LHV) MJ/Nm3(LHV) MJ/Nm3(LHV) (Conducted after the durability test) 6 Gross output150mw MJ/Nm3(LHV) Stable p generation using various coals was confirmed. Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -5 Load change rate test 300 200 MW 100 0 13:00 13:30 14:00 14:30 15:00 15:30 16:00 Gross output MW GT ouput MW ST ouput MW Load Change rate 2.4%/min was confirmed. Some adjustment would be required for achieving the target value (3.0%/min). Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -6 Auxiliary facility incident-1 Leakage from Gland of Rotary Valve below Porous Filter Cause Inadequate tightening of a packing caused the gas leakage from the gland. Countermeasure Proper control of tightening the packing at the gland Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -7 Auxiliary facility incident-2 Forced Outage of Slag discharge Conveyor Cause Scraper of the drag chain conveyor meandered and stuck onto the gutter of the bottom plate causing overload to the conveyor motor. Countermeasure Improvement in the conveyor structure Slag feed Slag storage tank Slag from gasifier Slag discharge Conveyor Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -8 Auxiliary facility incident-3 Pulverized coal leakage from bag filter Cause Countermeasure A bag filter was damaged to The baffle plate was reinforced to leakage by the unexpected withstand the pulverized coal passage of the pulverized coal pressure. through the baffle palate. Unexpected hole Pulverized Coal Bag Filter baffle plate Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -9 Auxiliary facility incident-4 Leakage of Extraction air Cooler Cause Cooler tubes for extraction air were damaged. Leakage occurred due to the stress corrosion cracking. Countermeasure The tube material was changed to titanium. Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -10 Auxiliary facility incident-5 Leakage of Char Gasifier Burner Cooling Tube Cause The char accompanied by the secondary air eroded the burner cooling water tube. Countermeasure The disposition of the burner was adjusted. reductor R- Pulverized Coal burner combustor Char burner C- Pulverized Coal burner Copyright Clean Coal P R&D Co., Ltd

(1) Results of 5,000 hour durability test -14 Inspection work in June and this fall after the test has been conducted to check the deterioration in the main facility components or functional disorder. No major defects have been observed for the moment Overall estimation on the effects to the facilities by the durability test would be summarized and reflected in the reliability as well as economy estimation. Copyright Clean Coal P R&D Co., Ltd

(2) This year s other activity -1 Indonesian (B) sub-bituminous coal was tried and the maximum stable load was confirmed in 150MW output. Stable operation in 90% ASU output was confirmed. Additional ling ASU output is under investigation to reduce the house p. Trip happened due to the trouble of the motor for the amine circulation pump. Copyright Clean Coal P R&D Co., Ltd

(2) This year s other activity -2 Economy estimation Construction cost is to be almost 20% higher than conventional PCF at commercial stage. Fuel cost could be almost 20% l than PCF at commercial stage because of higher efficiency. Maintenance cost is to be estimated while conducting maintenance work in the plant. Next year, we will conduct maintenance outage by law, which would bring about the information for the estimation. Cost-reduction in facility is under study such as reducing the components, reflecting the various test results. Copyright Clean Coal P R&D Co., Ltd

(3) Test Plan in the next year and after Improvement in operation Additional flexibility test : other types of subbituminous coal Minimum load test, load change rate test to realize better operation performance Estimation on reliability and economy Validate the effectiveness of the past countermeasure to the facilities Economy of commercial IGCC in future reflecting the more realistic maintenance cost FS with CCS attachment Japanese government is performing feasibility study of CCS project, utilizing the Nakoso IGCC. CCP is and will be cooperated with this activity. Copyright Clean Coal P R&D Co., Ltd

Concluding remark CCP is conducting the test in step-by-step approach. The result and estimation is almost within our expectation. Still, more work should be required. In the end, CCP would like to enhance the reliability and maintainability of the air-blown IGCC and finalize the competitive price, complying with the user s expectation. Copyright Clean Coal P R&D Co., Ltd

Thank you! Copyright Clean Coal P R&D Co., Ltd

Attachment-1 (As of September 30, 2010) Operating Time P Generation Fuel Consumption GT Operation by Syngas Gasifier Operation Cumulative gross output Cumulative coal consumption 9,676 hrs 9,786 hrs 1,992GWh 667 kton (metric) Copyright Clean Coal P R&D Co., Ltd

Attachment-2 30% subsidy METI CCP METI: Ministry of Economy, Trade and Industry Joint project agreement 70% contribution Personnel Hokkaido EPCo. Tohoku EPCo. Tokyo EPCo. Chubu EPCo. Hokuriku EPCo. Kansai EPCo. Chugoku EPCo. Shikoku EPCo. Kyushu EPCo. J-POWER CRIEPI EPC Contract Mitsubishi Heavy Industries, Ltd. Operator, etc. Joban Joint P Co., Ltd. Copyright Clean Coal P R&D Co., Ltd