© 2008 Capstone Turbine Corporation MicroTurbine Applications for the Oil and Gas Industry Lee Richards - Director of Sales for

© 2008 Capstone Turbine Corporation • www.capstoneturbine.com

MicroTurbine Applications MicroTurbine Applications for the Oil and Gas Industryfor the Oil and Gas Industry

Lee Richards - Director of Sales for Oil & Gas, Capstone Turbine Corp

Bryan Hensley - VP Sales, Pumps & Service

15 July 2008


What is a MicroTurbine?

Power generator driven by a small scale gas turbine

• Electrical Efficiency of 26-33%• Combined with CHP can achieve thermal efficiency of 80%+• Wide range of fuels – 350 btu to 2500 btu

• Up to 7% H2S with C30

• Extremely Low Emissions - <9 ppm NOx• Air Bearings

• No Oils or Lubricants

• Air Cooled• No Antifreeze or Coolants

• Variable Speed• 45,000 to 96,000 RPM


Air Bearings

Spring

Foil

Shaft

Boundary Air

Spring

Foil

Shaft


Inside the Capstone MicroTurbine

Combustionchamber

Exhaust output

Recuperator

Fuel injector

Air bearings

Compressor

Generator

Air intake

Cooling fins

Turbine

• No gearbox, pumps, or other mechanical components

• Recuperated Engine

• Permanent magnet alternator

• Lean premix combustion

• Air Bearings

• Air Cooled


• No moving parts• Variable Voltage 400-480 volts• Variable Frequency 10-60 Hz• Voltage & Current source

Inverter• “Electronic” Gearbox• Built in Fault protection

Power Electronics


Inverter Based Electronics


MultiPac & Grid Connect


Capstone Products

C30 & C65

Available with gas & liquid fuels

C200 & C200 CHPC65 CHP


Capstone Products

C30 & C65Class I Div 2ATEX Zone 2

C30 & C65 SS


Performance

C30 C65 C200

Rated Power

30 kw 65 kw 200 kw

Full Load Efficiency

26% 28% 33%

Heat Rate

12,200 Btu/kWh (12,800 kJ)

11,000 Btu/kWh (11,600 kJ)

10,300 Btu/kWh

(10,900 kJ)

Liquid FuelD2, 1-K, Jet A, JP-

8, JP-5D2 In Development

Gas Fuel (HHV)

325-2131 Btu/scf 325-2550 Btu/scf 325-2550 Btu/scf

Output Current

46 Amps RMS 100 Amps RMS 310 Amps RMS

Nominal Voltage

400 to 480 VAC 400 to 480 VAC 400 to 480 VAC

Exhaust Gas Temp

530 F (275 C) 588 F (309 C) 535 F (280 C)

NOx Emissions

Gas : <9 ppmLiquid : <35 ppm

Gas: <9 ppm

<5 ppm CARB

Gas: <9 ppm

<5 ppm CARB

Acoustics 65 dBA 65 dBA 65 dBA


Packaged Solution

C600 C800 C1000

Rated Power

600 kw 800 kw 1000 kw

Full Load Efficiency

33% 33% 33%

Heat Rate10,300 Btu/kWh

(10,900 kJ/kWh)

10,300 Btu/kWh

(10,900 kJ/kWh)

10,300 Btu/kWh

(10,900 kJ/kWh)

Output Current

930 Amps RMS 1240 Amps RMS 1550 Amps RMS

Nominal Voltage

400 to 480 VAC 400 to 480 VAC 400 to 480 VAC

Exhaust Gas Temp

535 F (280 C) 535 F (280 C) 535 F (280 C)

Exhaust Energy

4,050,000 BTU/hr 5,400,000 BTU/hr 6,750,000 BTU/hr

• (3), (4), or (5) C200 Units• Stackable Footprint• 30’ Enclosure with ISO Footprint• Load control from 100% to idle• Flexible Maintenance• Parts redundancy with C200


C1000 ISO Efficiency

High Part Load EfficiencyHigh Part Load Efficiency

0

5

10

15

20

25

30

35

0 100 200 300 400 500 600 700 800 900 1000

Power (kW)

Eff

icie

nc

y (

%)

Load Share Efficiency

Typical Turbine Efficiency


Installation

60 kw MicroTurbine

20 kw Recip Package

Height (ft) Width (ft) Depth (ft) Weight (lbs)

C30 Industrial

6.4 2.5 5.0 1271

C30 C1D2 7.7 3.1 7.0 2475

C65 Industrial

6.9 3.1 7.0 2471

C65 C1D2 8.2 3.1 7.0 3600

C200 8.2 5.5 12 7000

C1000 9.6 8.0 28 28,500


Typical Site Layout


Oil & Gas Experience

Units SoldO&G

Installations

C30 3350 285

C60 1282 122

C65 360 135

C200 45 2

Total >5037 >544

• Mexico• 36 Units in Offshore Oil Production

• Flare Gas Fuel

• NE United States Pipeline• 31 Units in Gas Transmission

• CHP Applications

• Russia Pipeline• 50 Units in Remote Gas Transmission

• South America Pipeline• 65 Units in Gas Transmission

• More than 60 O&G customers worldwide• More than 70 packages installed offshore

80% of all Microturbines Sold Worldwide are Capstone


Certification

• California CARB 2007 Listed

• UL 2200, the latest generator safety standard, and UL 1741, the national grid interconnect standard

• MicroTurbines were the first generators of ANY type state-approved by New York and by California (“Rule 21”) for direct-to-grid interconnection

• Also compliant with NFPA, IEEE519, CE, NEC, CSA, ATEX and other internationally recognized safety standards


Capstone: A Big Small Company• Founded 1988

• First to introduce microturbine energy products ten years later

• 100% microturbine focused

• The world leader in microturbines

• >5000 production units sold and shipped

• ISO 9001:2000 and 14001:2004 UL-certified

• Offices in LA, NYC, Mexico, Milan, Bath, Shanghai and Tokyo

• Distributors located world wide

Capstone Corporate HeadquartersChatsworth, California


Preventative Maintenance

Servicing injectors at 20,000 hrs on an offshore platform

8,000 Hours

Air Filters Clean/Replace

Fuel Filter Replace

Igniter Replace

20,000 Hours

Injectors Replace

Battery Pack Replace

Thermocouple Replace

40,000 Hours

Engine & Generator

Exchange

• Typical Maintenance cost of $0.016 kWhTypical Maintenance cost of $0.016 kWh

• Average of 6 Hours of Planned Maintenance Average of 6 Hours of Planned Maintenance per yearper year

• Capstone will Capstone will guaranteeguarantee cost of cost of planned and planned and unplannedunplanned maintenance through Factory maintenance through Factory Protection PlanProtection Plan


Oil & Gas Specific Applications


Key O&G Objective

• Primary Uses• Generate Power• Eliminate Flare/Vent• Combine Heat/Power

• Use power for applications• Prime site power• Black start power• Back-up power• Peaking• Supplemental power

• Reduce utility costs

• Generate power from fuel sources such as• Casing gas from oil production• Condensate gas from liquid processing• Gas too rich or too lean to meet pipeline standards• Sour gas with H2S – up to 7%

3-pack on oil flare gas in New Mexico


• Low Installed Cost

• Short Commissioning Period

• Easy Interconnects to Local Grid or Bus

• Very Low Maintenance

• Ease of Operations

• No Lubricants or Coolants

• Small Footprint, Light Weight

• < 65dBA Acoustic Emissions

• Ultra-low NOx emissions with nopost-combustion devices or chemicals

• Accepts 350-2500 Btu w/up to 7% H2S (C30)

Benefits of MicroTurbines in O&G

Test prior to platform deployment, Netherlands


Integrated Heat Exchanger


Exhaust Heat Utilization - CHP

Source: EPA and DOE, see notes page for specific references

33% av. utility

efficiency

33% av. utility

efficiency

80% av. boiler

efficiency

80% av. boiler

efficiency

120 kWth

65 kWe 160 kWwaste

345 kWfuel

130 kW waste

30 kW waste

195 kW fuel

150 kW fuel

40 kWwaste

230 kWfuel

65 kWe 120 kWth

• 80% average total efficiency• 0.15 lb/MWh NOx & 1,540 lb/MWh CO2




Traditional Approach Capstone ICHP


Exhaust Heat Utilization - CHP

• Heat to glycol or hot oil systems

• Preheat fuel gas to larger turbines or engines

• Preheat water to steam boilers

• Direct heat to oil/water separators

• Supplemental heat to regas LNG or other liquid regas process

• Building or utility heat

• Various gas plant and amine plant applications

• Refrigerant based systems


Exhaust Heat Utilization

Microturbines also generate voluminous exhaust heat• C65 Generates 561,000 BTU/hr (591,000 kJ/hr) at 588F (309C)

Heat from two C30s running on untreated wellhead gas goes to “heater/treater” separator


Example Applications


Cathodic Protection

Example Installation by Pumps & Service• Client – Major US Gas Transmission Company• Project - Gas Pipeline Cathodic Protection• Requirements - Customer required extremely reliable

power source at low current in very remote applications.• Alternative Solutions

• Grid power – would require several miles of power lines installed

• Recip Generators – would require regular maintenance intervals

• Thermal Electric Generators (TEG) – unreliable


Cathodic Protection

• Solution – Single C30 installed along pipeline as required• Benefits

• Minimal maintenance requiring site visits only once each 6 months

• Remote monitoring and diagnostics to verify operational quality

• Extremely low emissions for installation in national forest


Primary Power for Remote Site

Example Installation by Pumps & Service• Client: Major US Production Company• Project: Primary Power for Salt Water Disposal• Requirements: Needs reliable, cost-effective power in

remote location• Alternative Solutions

• Grid Power – Not available

• Re-Power – Eventually same problems with high maintenance cost, high emissions, and excessive down time.

• Reciprocating generators – Same as re-power


Primary Power for Remote Site

• Solution - Multi-pac of 3-C30 installed in a control room fabricated for this site.

• Benefits• Lowered maintenance cost• Improved reliability of site• Improved flexibility to control and maintain pressures and flow

rates

• P&S Later designed New SWD in 2006 with Capstone because of success


Primary Power for Oil Pipeline

Example Installation by Pumps & Service• Client: Large US Oil Pipeline• Project: Transfer pumps for a major Oil Pipeline in

Remote Location• Requirements: Reliable Power because of extremely

high cost for down time as well as being on a very remote location

• Alternative Solutions • Grid Power – Not available

• Reciprocating Generators – regular maintenance schedules, unplanned down time (low oil, high engine temp..) and reliability.


Primary Power for Oil Pipeline• Solution: (15) C65 installed as the power supply for location• Benefits:

• Minimal maintenance requiring planned site visits on semiannual schedule

• Remote monitoring and diagnostics to verify operation• Reliability. No unacceptable downtime


Offshore Resource Recovery

The Solution:• A Capstone microturbine, UL certified for hazardous oil and gas applications• The microturbine runs on onsite unprocessed wellhead

gas which is normally flared, providing a power source to the platform • The microturbine cut maintenance time by ~95%

compared to reciprocating engine generators • The microturbine ran almost non-stop for 25,000 • Capstone has microturbines running on other platforms

in the Gulf of Mexico, Gulf of Alaska, Bay of Campeche, the North Sea, Mediterranean Sea, and South China Sea

The Issues:• Provide a reliable power source in a

hazardous oil and gas application on an offshore platform in the Gulf of Mexico

• Recover value from onsite flare gas which is normally lost to the environment


Offshore Installations

Deployed in the Gulf of Mexico


Conclusions

• Ideal power generation for oil & gas

installations, onshore and offshore

• More than 5,000 Capstone MicroTurbines

sold and 19+ million operating hours

• Fuel Gas from 350 BTU – 2500 BTU with

up to 7% H2S

• Low emissions of less than 9 ppm NOx

• Lowest maintenance cost of 0.016 $/kWh

with 6 hours/year of planned maintenance

• No lubricants or coolants


Documents

© 2008 Capstone Turbine Corporation MicroTurbine Applications for the Oil and Gas Industry Lee Richards - Director of Sales for