1

2010 Gas-Electric Partnership

Emissions Reduction from Legacy Engines

February 11, 2010Houston, TX

Bill Couch, El PasoMike Whelan, PRCI

2

Emissions Reduction from Legacy Engines (ERLE) R&D Program

An ongoing, multi-year effort to minimize the impact of retrofitting pipeline reciprocating engines to meet increasingly stringent air quality regulations

Program started in 2004, anticipating that the EPA trajectory for Ozone regulations would create a significant financial exposure for many pipelines Needed to reduce the cost of retrofit NOx options, ensure their

wide applicability and ensure no performance compromises

This presentation will review the technical status of the ERLE program, and how its original drivers have evolved.

3

Pipeline Research Council Int’l. Overview

MembershipPipelines – 36, over 350,000 miles of pipe

• 26 with significant North American assets• 5 are Liquids-only (plus trade association – AOPL)• 9 are major integrated companies with both gas and liquids

Associate Members – 15• General Electric, Solar Turbines, Cameron, Dresser-Rand• Numerous linepipe manufacturers and ILI vendors

FundingAnnual subscription – formula based on pipeline mileage

• 2009 R&D program size: $7,287K

4PRCI’S Mission

“To conduct a collaboratively funded research program that enables energy pipeline companies around the world to provide safe, reliable, environmentally compatible, and cost effective service to meet customer energy requirements. ”

Drivers of PRCI’s members Total Asset Management for Reliability, Integrity, and Productivity Controlling Operational Risk Near-term Expansion to Accommodate New Fuels and Markets Enhancing Public and Regulator Awareness and Acceptance Environmental Performance System Flexibility The Loss of the Knowledge and Skill Base

5

Research Allocation & Committees - 2010

Pipeline Program (~73% of funding, $5.3MM )CorrosionDesign, Materials and ConstructionOperations & Integrity41 Projects total

Facilities Program (~27% of funding, $2.0MM)Compressor & Pump Station ($1.178 MM)MeasurementUnderground Storage23 Projects total

6

Compressor & Pump Station Projects

Legacy Engine Emissions Reduction

Gas Turbine O&M issues

Compressor & Pump Station facility integrity

Greenhouse Gas monitoring and reporting protocols

Liquid Pump efficiency improvements

Ozone Nonattainment: 1-hour Ozone NAAQS – 1990

Initial focus on “urban” areas within highlighted regions-“Ozone Transport Region”created (New England & NY, NJ, PA, MD)

8

9

10

11

12

13

14

**The Fine Print

From the footnote on the prior 2020 slide Modeled Emissions in 2020 include the effects by 2020 of

various Federal programs including:-Clean Air Interstate Rule-Clean Air Mercury Rule-Clean Air Visibility (particulates) Rule-Clean Air Non-Road Diesel Rule-The Light-Duty Vehicle Tier 2 Rule-The Heavy-Duty Vehicle Rule…..and a couple of other programs.

15

16

Cost Exposure

NOx ControlScenario

Engines Affected

(estimated)Probability that High-level NOx

Controls will be required Cost

Exposure

-Units located within existing ozone non-attainment areas with a unit size >3,000 hp

420(1.76 MM

hp)

Almost certainto occur

$2.2 billion(Replacement cost of

$1,250/hp)

-Units located within existing ozone non-attainment area with emissions > 1 ton per day-Units located near/within a non-attainment area with unit emission >100 tons per year

1,000(2.5 MM

hp)Very likely

$3.125 billion(Replacement cost of

$1,250/hp)

Expand NOx SIP requirements beyond Eastern states per the CAIR rule for all units >1,000 hp

2,500(4.4 MM

hp)

NOx SIP area expansion very likely, unit control needs determined state

by state

$5.975 billion (Replacement cost of

$1,250/hp for large units, $1,500/hp for

smaller units)

17

Non-SIP Drivers for NOx Controls

Facility expansions or increases in engine utilization that trigger Prevention of Significant Deterioration reviews and corresponding implementation of BACTand/or NOx offsets

Unit maintenance, reconstruction or debottlenecking that triggers New Source Review and potential requirement for BACT emissions levels.

The periodic need to over-control engines as a display of good faith to expedite permit approvals or to resolve a prior compliance issue

Some states implement stringent permitting and retrofit programs simply as a matter of policy and desired eco-profile.

18

NOx Considerations

Pressure to reduce Ozone continues & eventually States will run out of other NOx tons to controlMost powerplants will have SCR controls Automobiles are already very clean Pipelines often the second or third largest source category in many

states - they won’t go unnoticed Other NOx drivers – Regional Haze & Particulates New high-speeds can achieve ½ gram NOx Electric motor equivalency is below ½ gram Some states continue to push SCR (80% control of 3g) NO2 Rules just established – 2020 compliance Bottom line – need a toolkit to achieve ½ gram

19

Specific ERLE Program Objectives

The overall ERLE objective is to develop technical options that allow: NOx emissions as low as 0.5 gm/hp-hrNo increase in other emissions or fuel consumptionNo decrease in operating range or reliabilityOperation across the full span of ambient conditionsCosts ranging from 1/6 to 1/3 of engine replacement costs Implementation on 80% of the legacy engine population

Engine control strategies and optimized components developed can also be used to maximize fuel efficiency.Thus, significant fuel reductions and associated GHG

reduction opportunities are inherent to this program.

20

ERLE Planning

A perpetual challenge to R&D is avoiding disconnects between research and commercialization

We sought to head-off this predicament by involving stakeholders in the Roadmap process early and often Sponsor: PRCI (through its member companies) Primary Research Contractors:

• Advanced Engine Technologies, Inc.• Colorado State University• Kansas State University• Innovative Environmental Solutions

Vendors (providing commercialization channels and cost-share): Hoerbiger, Cameron, D-R Enginuity, Exterran, Kistler

21

Specific Program Objectives

The overall ERLE objective is to develop technical options that allow: NOx emissions as low as 0.5 gm/hp-hr No increase in other emissions or fuel consumption No decrease in operating range or reliabilityOperation across the full span of ambient conditions Costs ranging from 1/6 to 1/3 of engine replacement costs Implementation on 80% of the legacy engine population

An additional value is that engine control strategies and optimized components can maximize fuel efficiencyThus, fuel reductions and associated GHG reduction

opportunities are inherent to this program

22

Specific Technical Elements

A thorough assessment of the factors that could enable ultra-low NOx operation identified six discrete technical dimensions that govern overall engine performance and emissions:

1. Engine closed-loop controls, including engine sensors

2. Emissions aftertreatment3. In-cylinder fuel and air mixing4. Air delivery (at the turbocharger and engine

frame level)5. Air management (at the cylinder level)6. Ignition systems

23

Review Criteria for each Dimension

Provide Technology DescriptionCharacterize State-of-the-Art Identify Technology Gaps ID Areas of Promising Technology

DevelopmentConsider technologies from other sectors:AutomotivePower Generation

Establish Status of Progress of each Technology Dimension along the Roadmap

The ½ Gram Engine – Emission/Technology Map

NOx Level

Req

uire

d U

pgra

de

0.5 g/bhp-hr 1 g/bhp-hr 3 g/bhp-hr 5 g/bhp-hr 10 g/bhp-hr

OEM Reduced Load, Retarded Ignition

Turbocharger Upgrade (“More Air”)

High Pressure Electronic Fuel Injection (EFI)

Prechamber (PCC)

closed loop ePCC

Advanced TER Control

Transient Control

A/F Control

Balancing & Diagnostics

Advanced Ignition System

ePCC

Alternative Approach

We can get there from here – at reasonable cost

The ½ Gram Engine – Emission/Technology Map

NOx Level

Req

uire

d U

pgra

de

0.5 g/bhp-hr 1 g/bhp-hr 3 g/bhp-hr 5 g/bhp-hr 10 g/bhp-hr

OEM Reduced Load, Retarded Ignition

Turbocharger Upgrade (“More Air”)

High Pressure Electronic Fuel Injection (EFI)

Prechamber (PCC)

Transient Control

Advanced TER ControlA/F Control

Balancing & Diagnostics

Advanced Ignition System

closed loop ePCCePCC

Alternative Approach

The foundation of all NOx reduction projects is aturbo re-aero ($$) or turbo replacement ($$$$)

Progress within ERLE Technical Dimensions

Commercialization of Turbocharger Monitoring System “TurboShield” by Exterran

SAS 1b.2 predictive controller 1b.3 predictive controller 1b.4 predictive controllerAS 1c. Cyl/Cycle controller 1c.2 Cyl/Cycle controller 1c.3 Cyl/Cycle controller 1c.4 Cyl/Cycle controllerA

SASAS 2c. NSCR - controls 2c.2 NSCR - controlsASA

S 3a. Active Air Control 3a.2 Active Air ControlA

S 4a. HCCIA

S 5a. Turbo Peaking 5a.2 Turbo Peaking 5a.3 Turbo PeakingAS 5b. Turbo Comp. MatchAS 5c. Turbo Monitoring 5c.2 Turbo MonitoringA

SA

Technology Performance Information or Specification

Analysis/ Design/ Fabrication Commercial Product Available

Prototype Demonstration

Field Evaluation On-Ramp Off-Ramp

Field Demonstration (pre-prod.)

2010TECHNOLOGY

DIMENSION2009

2. Aftertreatment Controls

Identifying a commercialization partner prior to further work.

1a. cylinder-level sensors 1a.2 cylinder-level sensors

Sche

dule

d/

Act

ual

1. Closed-Loop Controls

SCR performance on pipeline engines

2a.2 SCR slip-stream 2a.3 SCR full-scale

6a.3 PCC multi-cylinder

1b. Predictive controller

2006 2007 2008

6a. PCC 1-cylinder 6a.1 PCC 1-cylinder

No Projects Planned

2a. SCR slip-stream

6a.4 PCC multi-cylinder

2b. Oxicat State-of-ArtCANCEL

2c. NSCR - controls

2d. NSCR State-of-ArtDefer to 2008

Delay start to 2007

3a.4 Active Air Control 3a.5 Active Air Control

2d. NSCR State-of-Art

6. Ignition

4. Combustion 3. Air

6a.2 PCC multi-cylinder

3a.3 Active Air Control

5. Air Delivery 5b. Turbo comp. match?

Participation and cofunding from two potential commercial partners

Comments

Expected to become Hoerbiger product.Expected to become Hoerbiger product. May be combined with 1b.

HCCI has taken the off-ramp (will not be pursued)

Oxidation catalyst work is mature and will not be pursured (off-ramp)

Altronic/Hoerbiger product. '07 work pending site selection & test

performance and by-product emissions

Identifying a commercialization partner prior to further work.

On-hold pending vendor cofunding

YOU ARE HERE

29

Mid-Course Corrections

Inherent to the strategy for a Dimension was the expectation of program “on-ramps” and “off-ramps” Certain technologies would be down-selected Alternative approaches would be initiated

Some technologies evaluated have significant barriers e.g., homogeneous charge compression ignition (HCCI) Pre-combustion chambers after OEM offerings emerged New understandings were gained and documented in project reports

Other technologies, such as oxidation catalysts, were reviewed and considered to be adequate However, the future large engine lean-burn MACT revisions were not

anticipated – so we are characterizing oxycat technology vs. formaldehyde in 2010 & 2011.

30

Industry Oversight

5-year research program comprised of 6 technology dimensions and multiple projects per dimension quickly becomes a project management challenge

An oversight team, consisting of “20 Percenters” from PRCI member companies, was established for each of the 6 dimensions

While each project has a milestone schedule (Gantt chart) prepared and maintained by the research contractor, an overall program milestone chart was created to show deliverables, overall progress and project cross-relationships

31

Progress within ERLE Technical Dimensions

System Integration (organizing the tools in the toolbox)

Trade-off studies were identified potential application configurations for the variety of ERLE technologies

There are many opportunities to layer equipment, depending on the extent of NOx reductions needed, and the nature of the engine

This was used to identify remaining development needs, and to plan the 2010 ERLE integrated engine test configuration

32

Integrated Engine Test

Clark TCVA-10 at Southern Natural – Gallion, AL Hoerbiger Hyperfuel (High Pressure Engine Fueling) Hyperbalance II and III. (Cylinder auto-balance using Kistler sensors

as the in-cylinder sensor and feedback loop)• Pressure-ratio balance

Electronic Precombustion Chambers with ion sense in PCC Present configuration: MAN 48 turbocharger (has excess capacity)

and Bristol controller Current permit of 2.2 grams NOx, 2.7 grams CO, 1.5 grams VOC

Site test objectives Improved margin of compliance on NOx/CO trade-off Demonstrate lowest possible NOx – to ½ gram NOx ideally. Demonstrate ability to operate at 60 to 120% torque on hot day. ID benefits of reduced misfires and reduced damage factor

33

Integrated Engine Test

Clark TCVC-20 at ANR Pipeline – Eunice, AL Hoerbiger Hyperfuel (High Pressure Cylinder Fueling) Hoerbiger Hyperbalance II & III Electronic PCC’s with ion sense New turbocharger NOx 2.7 grams, CO 2.8 grams

Main site objective is to expand operating range to very low loads while maintaining compliance Demonstrate range of 30% to 120% torque Test as layers of technology – before and after new turbo

installed. Determine incremental NOx reductions ID benefits of combustion stability, damage factor monitoring

and fuel rate Potentially install TUBS to assist with cold starts