Natural Gas and Gas Turbines: Clean, Efficient and Flexible Energy. Mike Welch, Industry Marketing Manager O&G Siemens Industrial Turbomachinery Ltd.

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Natural Gas and Gas Turbines: Clean, Efficient and Flexible Energy Mike Welch, Industry Marketing Manager O&G Siemens Industrial Turbomachinery Ltd. Siemens Protection AG 2008. notice All / Copyright rights reserved. notice

The Need for Energy World Energy demand is increasing Electricity 2.3% p.a. Although contribution of renewables is increasing, the World will continue to be reliant on fossil fuels for many years Coal +1.9% p.a. Natural Gas +2.6% p.a. Renewables +3.1% p.a. Increasing Greenhouse Gas emissions without measures such as fuel switching and carbon capture Slide 2 World Electricity Generation (Trillion kwh) by fuel type 40 35 30 25 20 15 10 5 0 2008 2015 2020 2025 2030 2035 US Energy Information Administration / International Energy Outlook 2011 Renewables Nuclear Coal Natural Gas Liquids

Combustion Pollutants NOx Global warming contributor Hampers plant growth Acid Rain formation Ozone formation smog: human health impact CO Smog contributor SOx Acid rain Unburned Hydrocarbons Ozone formation smog: human health impact carcinogens Methane slip Greenhouse Gas effect Volatile Organic Compounds Smog formation Particulate matter Smog Human health impact Slide 3

Why Natural Gas? Globally available fuel 150 years + supplies available Transportable Pipeline LNG CNG Low Carbon = Low CO 2 emissions Offers high energy efficiencies with many technologies Low Pollutants No SOx No particulates Low NOx combustors readily available and proven Suitable as a fuel for power, heating and transportation Slide 4

Why Natural Gas? Low CO 2 emissions per MWh burned 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 Natural Gas Diesel Coal Lignite Wood MSW (non-biomass) Source: EU SEAP Guidebook CO2 Emission Factors (t per MWh) Slide 5

Gas Turbine Power Generation How the Gas Turbine is usually perceived Combined Cycle Centralised Power Plant Natural Gas Fuel Power transmission and distribution by overhead line Highest efficiency for largescale power generation Slide 6

The Evolution of Siemens Combined Cycle Technology SGT5-2000E SGT5-4000F SGT5-4000F SGT5-8000H 52 % Efficiency 56 % Efficiency 58 % Efficiency > 60 % Efficiency Killingholme, 2 x 470 MW, 2x(2x1) Didcot B 1&2, 702 + 710 MW, 2x(2x1) Mainz-Wiesbaden, > 400 MW, (1x1) Irsching 4 SCC5-8000H 1S 570MW Reduction of CO 2 emissions 1992 1996 2001 2008/2011 Basis -7.1 % - 10.3 % - 13.3 % Slide 7

Energy Efficiency But is CCGT the best solution? It is one option: Offers a very high electrical efficiency Clean Requires energy to transport the gas in pipeline network CO2 emissions Energy losses in transmission and distribution system Vulnerability to weather etc Security of supply Distributed Generation offers an alternative! Slide 8

Siemens Range of Gas Turbines 13/15 Units most suitable for Distributed Generation 47/50 Slide 9 State-of-the-art and innovative gas turbines to meet today s and tomorrow s energy needs

Distributed Generation Potentially offers the most energy efficient solution Cogeneration Utilise waste heat from Gas Turbine to produce heat (or cooling) for local consumption Steam Hot water Hot air A properly sized Cogeneration plant can achieve 80%+ overall energy efficiency Utilise locally available fuels Reduced transmission and distribution losses and improved security of supply Not a new concept: Used in for decades! Slide 10

SGT-300 & SGT-100 for an oil field Khasireyskoye oil field - Russia Units used for a power plant at the Khasireyskoye oil field north of the Arctic circle (Siberia) Solution: Two SGT-100 gas turbine generator sets Output 4.7 MWe each - DLE Combustion system Three SGT-300 gas turbine generator sets Output 7.9 MWe each - DLE Combustion system Guaranteed NOx and CO emission levels of 25ppm Min. air temp. (-57 o C) Max. air temp. (+30 o C) Gas composition with Wobbe Index Min- Max 37-49MJ/m3 Significant reduction of emissions : 80-90% reduction of NOx level Slide 11

The Benefits of Cogeneration Overall Energy Balance for Remote Power Generation Losses 40% T&D losses circa 5% On site heat Fuelplus Electricity Remote import is more efficient 100% CCGT Power 55% Plant Electricity 100% Fuel On-site Boiler Steam 80% Slide 12 Losses up to 20% Steam distribution losses Overlooks fuel mix etc. which will reduce efficiency Overall Energy Efficiency = 67.5%

The Benefits of Cogeneration Overall Energy Balance for Cogeneration Losses circa 20% 100% Fuel On-site Cogeneration Plant Electricity Steam 35% 45% Steam distribution losses Overall Energy Efficiency = 80% Slide 13

The Benefits of Cogeneration CO 2 Emissions (kg per hour) > 10% Global CO 2 Reduction over best alternative! Remote Local 30000 25000 30MW Power 20000 40MW Heat 15000 10000 5000 0 Separate Heat & Power On-site Heat + CCGT On-site Heat + Mixed Power Cogeneration Local Fuel = Gas GT = 35% eff Boiler = 90% eff CCGT = 60% eff Power Mix = 40% eff Gas = 0.056kg CO 2 /MJ Mix = 0.087kg CO 2 /MJ (Source: Natural Resources Canada) Slide 14

Power Generation: Gas Turbine with Cogeneration Exhaust Stack Fuel Gas Gas Turbine Generator Process Steam HRSG Duct Burner (Optional) Boiler Feed Water Unfired: Overall Energy Efficiency c. 80% Fired: c. 90% achievable Slide 15

Steam Raising Capabilities for Gas Turbine Co-Generation Plant 200 175 Notes: 1. Steam values are indicative only. Actual values depend on site configuration SGT-800 Steam (tonnes/hr) [12 bar saturated] 150 125 100 75 50 2. Firing to 850ºC only. Higher firing is available Unfired Fired SGT-100 SGT-300 SGT-400 SGT-500 SGT-600 SGT-700 25 0 Slide 16 0 5 10 15 20 25 30 35 40 45 50 Power (MWe)

Reference: Grodno Azot 1 and 2 (2xSSC-300 Cogen DH) Supplementary firing to 815 C (process gas) Customer: Grodno Azot, Grodno, Belarus Business Concept: GT and plant engineering In operation: 2008 (Grodno Azot 1) SGT-300 Economizer cooled by DH water 29 bar process steam Net power output: 14.9 MW Process steam: 29 bar / 13.9 kg/s / 35.2 MJ/s District heat duty: 13.6 MJ/s Power to heat ratio: 31% Fuel efficiency: 90% Slide 17

Reference: Riga CHP (SCC-800 2x1 DH) Multiple gas turbines for extended load range and part load efficiency Customer: Latvenergo Riga TPP1, Latvia Business Concept: EPC / Power Plant In operation: Oct 2005 Supplementary HRSG firing from 545 to 740 C (All HRSG) Air-cooled DH auxiliary cooler allows independent Power generation Heat-only boiler for DH peaks Slide 18 Siemens Energy, Inc., 2012. Confidential and Proprietary. All Rights Reserved.

Reference: Riga CHP (SCC-800 2x1 DH) Net power output: 140 MW District heating duty: 140 MW Fuel efficiency: 91% PSM ed.-order projects & experience/ Recent projects SSC-300/ SSC-400/ SSC-600/ SCC-700/ SCC-800 Slide 19 Siemens Energy, Inc., 2012. Confidential and Proprietary. All Rights Reserved.

Dry Low Emissions (DLE) Combustion Challenge set in the 1980s by the Market to Gas Turbine manufacturers to burn fuel as efficiently but with fewer pollutants Accepted the challenge and reduced NOx emissions to 1/5 th previous levels Introduced in 1990s, now standard combustion configuration on some models Continued development achieving even lower emissions Simple Robust No moving parts No impact on efficiency No impact on power output More than 17 million operating hours achieved High reliability and availability Also reduced CO, UHC Slide 20

Dry Low Emissions UK Site Retrofit 3 x Dual DLE Typhoon 4.9 Relative Change in NOx Mass Emissions 120.0 100.0 80.0 60.0 40.0 20.0 0.0 Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar-99 Apr-99 Months Slide 21

Intelligent DLE Provides lowest emissions through intelligent control Automatically identifies operating point that gives minimum NOx emissions for instantaneous site requirements Continuously controls fuel injection between pre-defined limits of temperature and combustor pressure dynamics Operation independent of load and fuel composition No external instrumentation required Dual Fuel (Gas / Liquid) or Gas only operation Tri-fuel operation proven (natural gas, lean gas, distillate fuel) Available on SGT-100 through SGT-400 Slide 22

Dry Low Emissions Combustion: Intelligent DLE With intelligent control With intelligent control Without intelligent control Without intelligent control NOx ( ppmv @ 15% O 2 ) NOx ( ppmv @ 15% O 2 ) Histogram of NOx emissions with/without the intelligent control fuelled with Processed Landfill Gas Significant reduction in NOx emissions when intelligent control applied The spread in the distribution is due to the variations in gas fuel composition Slide 23

Fuel Flexibility Gas turbines can run on a wide variety of fuels Siemens solution available DLE combustion Lean gases (high N2 or CO2 content) Wellhead gases, landfill gas, digester gas Rich gases (high HC content) Wellhead gases, process offgas Diesel or kerosene More usual as stand-by fuels Conventional combustion High hydrogen gases LPG and naphtha Crude oil Slide 24 Lean Gases Pipeline Quality Rich Gases 10 40 70 N2 content [wt%] and NOx [ppm] Combustion Dynamics [% of larm level] 60 50 40 30 20 10 0 0 N2 NOx Comb Dyn Load 10 Wobbe Index (MJ/Nm 3 ) 20 30 Time [minutes] 40 25 20 15 10 0 50 5 Load [MW]

High Power, Small Footprint One feature of a modern Light Industrial Gas Turbine is its high power density Light weight Compact Low vibrations Modular assemblies Makes them ideal for installations: Offshore Platforms Restricted space Transportation / site erection constraints Mobile and transportable units SGT-400 14.4MW Generator Set: 14.2 m x 3.1m 129 Tonnes SGT-750 35.9MW Generator Set: 20.3 m x 4.8m Slide 25

Mobile and Transportable Units Compact, easy to transport, quick installation at site 12.4MW Mobile Trailer mounted units 7.9MW transportable units Slide 26

Power generation barge module 4x47MW / 188 MW ISO 4xSGT800 single lift packages in barge or module design Volga Don canal adopted 95x16 meters 12 meters transport height Slide 27

Modularized CCPP concept Pipe rack modules GT modules HRSG modules GT E&C modules Feed water module ACC modules E&C module Oil cooler modules ST module ST tail module Slide 28 ACC module

Modularized CCPP, for on-offshore installations Off-shore installation with 4xSCC-800 3x1C, modularized concept Slide 29

Summary Gas Turbines offer: Flexibility in configuration High Energy Efficiencies achievable leading to reduced GHG emissions High Electrical efficiency in Combined Cycle High Overall energy efficiency in Cogeneration Flexibility in fuel choices Low combustion emissions Flexibility in Location Slide 30

Thank you for your attention Any Questions? Slide 31