Pima 14

VOLUME 3, ISSUE 1

A S I A’ S L E A D I N G P O W E R R E P O R T

POWERINSIDERPI

JAPAN:JAPAN:BALANCING THE COST OF

A RENEWABLE REVOLUTION

FEATURES INSIDE: Japan Renewables | Samcheok Project Report with Foster Wheeler | Wind Industry Gearbox Focus | Singapore’s Four National

Taps Strategy with PUB | Hyundai Steel showing the industry how to go green



PLUS• Japan Overview

• Japan Wind Market Review• Cyber Security Roundtable

PI_JanFeb_Cover_Rev.indd 1 08/03/2013 11:30

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w e l c o m e

power insider january/february 2013 3

56

78

27welcome to the first issue of power insider Asia for 2013.

In this edition, we take a look at an island nation rich with culture – japan.

japan is a country that conjures up a million cultural images, from the ancient emperors and Samurai, to exotic Geisha and deadly martial arts. The population of the island were the victims of the atomic bombings in the second world war, and the perpetrators of atrocities committed in the same conflict. modern japan may bring to mind the reputation the nation has gained for its expertise in technology and electronics.

when we here at Power Insider asia think of japan we can picture Tokyo, an extraordinarily futuristic city of lights, colour and technology. Tokyo is representative of how japan uses energy; abundantly and theatrically. what is extraordinary is that in terms of resources, japan is only 16% self sufficient, and is another nation that relies heavily on imports of fuels to feed its power hungry nation.

In the last two years, japan has suffered from power shortages across the island, because of the impact of the Great earthquake in 2011. The close of all but two of japan’s nuclear power plants has forced them to dramatically re-evaluate the way they use power and generate electricity. In this issue, we will take a look at how this re-evaluation has affected the fossil fuels market, and at how renewable resources such as solar, geothermal and wind power have been given a spectacular boost.

asia has vast coal reserves, but managing finite resources responsibly is crucial and KoSPo are demonstrating this with the impressive Samcheok project. we take an in-depth look at the groundbreaking development and advanced ultra supercritical cfb technology from foster wheeler, it will utilize.

This issue of Power Insider asia will also take an extensive look into the wind industry across the direct drive and traditional gearbox debate, protective coatings and subsea cable laying, all critical factors in the offshore industries growth.

we take time with Pub, Singapore’s national water agency to understand the innovative four national Taps strategy they have in place as part of our continuing focus on the desalination and waste water treatment industry.

There is an extensive review on the high voltage market for Indonesia as heavy investment continues to be made in transmission to keep up with the countries phenomenal new plant installation rate. The issue symbolizes what is going to be a big year for the asian power business so please enjoy. as always please contact our editorial staff to find out what features we have upcoming.

all the best

ChArles Fox editor

ContACt us:

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PI_JanFeb_KC_Engineering_Ad.indd 4 07/03/2013 08:14

C O N T E N T S

POWER INSIDER JANUARY/FEBRUARY 2013 5

56

78

27

56

News 6

The Japanese Overview 10

Samcheok Project Focus; Moving Mountains for Green Energy 18

The Renewable Energy Revolution for the

Empire of the Sun 24

Undertaking a Fine Art with

Subsea Cable Laying 32

Meet the Innovators; Japan and Offshore Wind 36

Driving the Wind Industry 46

Wind Turbine Lubrication and Filtration Tips 50

Transformer Asset Management 54

Cyberwarfare – Bringing the fi ght to the

energy industry 60

Singapore’s Four National Taps Strategy

with PUB 66

Water Intake Systems 70

Waste to Energy in the Steel Business 73

Online Boiler Cleaning with gas explosions 76

PI_JanFeb_Contents.indd 5 07/03/2013 08:40

PLN expect extensive delays over geothermal projects, but coal outlook still look positive State utility firm PT Perusahaan Listrik Negara (PLN) announced that several geothermal power plant projects might be delayed for years due to a variety of issues

including land acquisition and technical problems, which is a huge blow for an industry that offers such potential to the Indonesian energy crisis.

PLN construction director Nasri Sebayang said that 36 out of 52 geothermal projects included in the second stage of the 10,000 MW electricity

fast-track program, would not meet the initial deadline of 2016. Six plants with a total capacity of 360 MW are delayed because they are located in conservation forests, while 16 other projects with a capacity of 1,510-MW face technical issues. PLN has yet to even tender 14 more

projects, with a total capacity of 825 MW.

“It is impossible to meet the 2016 deadline for all the power plants under the second fast-track program,” Nasri said. The second fast-track program also covers coal, gas and hydro plants. Geothermal power plants make up 49

percent of the total.PLN intends to ask

the government to allow exploration for geothermal energy sources in conservation forests to speed up construction, Nasri said.“Usually it takes five to seven years to build a geothermal plant,” Plants

6 january/february 2013 PoWer INSIder

company news from around the world

news desk

MyTrah eNerGy are To becoMe The LarGeST IPP WINd PLayer IN INdIaMytrah Energy Limited (MEIL) gears to become the largest wind based independent power producer in India by installing a capacity of 310 MW of power from wind assets. In Andhra Pradesh, the company has a total capacity of 63 MW of wind assets in Vajrakarur in Anantapur district. Over Rs 400 crore has been invested for the project in Vajrakarur.

A capacity of 37.4 MW in Burgula in Kurnool district is under construction and is expected to be commissioned by September 2013. MEIL has entered into a MoU with the government of Andhra Pradesh for assessing wind potential in new sites. By 2017, Mytrah aims to have an installed capacity of 1000 MW in Andhra Pradesh.

Vikram Kailas, MD, MEIL, said, “It is a proud moment for us at Mytrah. Within just two years of our inception, we have become the largest Independent Power Producer in Andhra Pradesh.” He added: “In the next quarter, we expect to commence construction of another 100 MW in Andhra Pradesh. Also, we are in advance stages of approval for a further 100 MW. Including the 100 MW which is in advance stages of approval, we expect to have a cumulative of 300 MW commissioned in Andhra Pradesh by December 2014. This will involve an investment of over Rs 2000 crore in the state of Andhra Pradesh, which is the largest investment by an IPP in this state.”

MEIL has wind farms across six states – Andhra Pradesh, Rajasthan, Gujarat, Maharashtra, Tamil Nadu and Karnataka. The company has a total capacity of 210 MW across eight wind farms in Kaladonger as well as Mokal, Rajasthan; Chakla, Maharashtra; Jamanwada as well as Mahidad in Gujarat. The other projects in pipeline are Vagarai in Tamil Nadu, Savalsang in Karnataka and Gotne in Maharashtra.

PI_JanFeb_News.indd 6 07/03/2013 07:29

ALSTOM-SUMITOMO CORPORATION TAKE POLE FOR THE NORTH BANGKOK BLOCK 2 PROJECTA consortium of France’s Alstom and Japan’s Sumitomo Corporation has been awarded a contract to build an 850-megawatt combined-cycle power plant (CCPP) in northern Bangkok.

The North Bangkok power plant is owned by the Electricity Generating Authority of Thailand (EGAT). Alstom’s share in this contract, amounts to about 225 million euros (9 billion baht). It will supply electricity to meet fast-growing demand in the Thai capital.

This will be Alstom’s fi rst CCPP contract with EGAT and the fi rst globally that features Alstom’s upgraded GT26 gas turbine. Alstom will supply two GT26 gas turbines, turbo generators, heat recovery steam generators, steam turbines and a distribution control system.

EGAT have a combined installed base of over 13,000 MW accounting for 47.8% of the country’s generating capacity. The North Bangkok CCPP block 2 services EGAT’s plan to increase Thailand’s capacity to 55,000 MW by 2030 while also minimising carbon dioxide emissions from these plants.Mark Coxon, senior vice-president of Alstom’s gas business, said this contract should reinforce customer confi dence that the company’s technology can produce clean, fl exible and effi cient power for Thai consumers and businesses. It also strengthens the group’s position as a key player in power generation infrastructure in Thailand, having built over seven gigawatts of the installed capacity of the country, including the engineering, procurement and construction of several gas-fi red plants, such as the 730-MW Bowin, 350-MW Bang Bo and 1,520-MW Kaeng Khoi 2 projects. Alstom also supplied equipment to Rayong, Thailand’s fi rst CCPP.

using coal or gas usually take a maximum of three to fi ve years to be completed.

Despite the delays, PLN still expects around 4,650 MW of electricity, 46 percent of the total anticipated capacity of the second fast-track program, to be on stream before 2016. The fi gure includes 1,650 MW from

plants constructed by PLN while the other 3,000 MW will come from the independent power producer (IPP) scheme.

PLN also reports that of the 9,900 MW projected in the fi rst stage of fast-track program, around 45 percent is already in operation, including Lontar coal-fi red plants in Banten with a capacity of

630 MW; Kendari, Southeast Sulawesi (10 MW); Paiton, East Java (660 MW); and Amurang, North Sulawesi (50 MW).

This year, 10 coal-fi red plants producing over 2,400 MW will begin production including those in Pacitan, East Java (630 MW); Pelabuhan Ratu, West Java (1,050 MW);

Barru, South Sulawesi (100 MW); and Nagan Raya in Aceh (220 MW). Seventeen coal-fi red plants, or almost 3,000 MW of power, are still under construction. Ten of them, mainly in Kalimantan and the eastern part of the country, should be completed this year adding about 1,700 MW to supplies.

Seven planned coal-fi red plants with a total capacity of 1,325 MW in Central Java, Riau, West and Central Kalimantan and West Nusa Tenggara should all be completed next year.

SAUDI ELECTRICITY COMPANY ARE GOING SUPERCRITICAL, BUT ARE OIL FIRED POWER PLANTS REALLY A LONG TERM SOLUTION FOR THE KINGDOMMitsubishi Heavy Industries, Ltd. (MHI) has received an order for 4 sets of a 700 megawatt (MW) class supercritical pressure steam turbine and generator, plus supercritical boiler components, to be installed at a large-scale, heavy oil-fi red power generation plant that will be built by Saudi Electricity Company (SEC),

The 2,800 MW class power plant, which is to be the fi rst heavy oil-fi red supercritical power generation plant in Saudi Arabia, will be built at a site south of Jeddah, a city on the country’s western coast facing the Red Sea.

Saudi Arabia, the world’s largest oil producing country, has for the fi rst time chosen to adopt a supercritical pressure power generation system capable of effi ciently using heavy oil, in order to meet the country’s increasing electricity demand. MHI has an abundant track record in deliveries of supercritical steam turbines and boilers.

MHI received the order from Hyundai Heavy Industries Co., Ltd. (HHI), the EPC (engineering, procurement and construction) contractor of the power plant. MHI is slated to complete deliveries of the products on order between September 2014 and March 2015. Mitsubishi Electric Company will supply the generators.

Supercritical pressure heavy oil-fi red power generation provides higher generation effi ciency than subcritical pressure generation and is capable of reducing heavy oil consumption relative to power output, which results in lower carbon dioxide (CO2) emissions.

And whilst it is positive to see Saudi Electricity investing into high effi ciency supercritical power plants, the questions still remain as to the long term viability of these power plants and the unpredictable nature of the Kingdoms actual available oil resources.

HITACHI TO TEAM UP WITH GUJARAT GOVERNMENT FOR EXCITING DESAL VENTURE

Japanese industrial solutions giant Hitachi will sign a contract with the Gujarat government next month for setting up of a sea water desalination plant in the state that will treat 336,000 tonnes of

water every day.To be executed by four partners, the

construction of the facility will largely be fi nanced by the Japanese government under Indo-Japan joint investment strategy.

Hitachi India MD Ichiro Iino mentioned that

“We are going to sign the contract next month with the Gujarat government. The plant will be developed under Build-Own-Operate-Maintain (BOOM) method” He also revealed that “The plant will have the capacity to desalinate 336,000 tonnes of water per day.”



Conergy continues to strengthen its leading position in Thailand in 2013, heading into the new year with a major 31.5 megawatt order. It is already the second large-scale project for the Bangkok-based client and investor Siam Solar Energy 1 Co., Ltd. (SSE), a subsidiary of Thai Solar Energy Company Limited (TSE). In autumn 2012, Conergy started constructing two power plants for SSE with a total installed capacity of 21 megawatts. Both plants are scheduled to be connected to the grid in the fi rst quarter of 2013. Three additional solar parks with an installed capacity of 10.5 megawatts each are now to follow. Hence, the two partners’ commitment towards each other allowed the three additional solar parks to be realized within a few months of the fi rst two solar parks now under construction, for a total combined installed capacity of 52.5 megawatts.

“We have made many important decisions already last year to strengthen our international project business and to signifi cantly expand it in the

solar growth markets. With this large-scale project in Thailand we let action follow our decisions,” said Conergy CEO Dr. Philip Comberg. “For the future, we intend to work on large-scale projects specifi cally and long-term with fi nancial investors and strategic industrial customers who want to expand their portfolio like SSE with independent energy power plants.

The three new power plants are located in the provinces of Suphanburi and Kanchanaburi in western Thailand, some 130 kilometres from Bangkok. Once again, Conergy is acting as general contractor for this major order, assuming responsibility for the entire planning, engineering and design as well as for the supply of the components and the installation of the three large-scale solar plants, which will cover around 790,000 square metres in total. For the construction work on the ground, Conergy is collaborating repeatedly with its long-standing local partners Annex Power and Ensys.

LSIS make an impression for the South Korea smart grid tender

Electrical component maker LSIS have acquired advanced technology for an electric power transmission system at the expense of rival Hyosung, in development of

smart grid in South Korea.Both fi rms tendered bids

to a joint venture between the state-run Korea Electric Power Corporation (KEPCO) and French energy company Alstom called KEPCO-Alstom Power Electronics Systems (KAPES) for the

technology to build advanced high-voltage direct current (HVDC) systems.

LSIS CEO and Vice Chairman Koo Ja-kyun visited France last month and met with Alstom executives. He is known to have played a pivotal role in securing the contract.

“Koo’s behind-the-scenes role has been important for LSIS in strengthening partnerships with overseas businesses as well as affi rming his leadership,” said an industry offi cial, asking not to be named.

Sophisticated HVDC

systems have been touted as a future growth engine for industrial fi rms. Alstom, Germany’s Siemens and Switzerland’s ABB control over 90 percent of the market. LSIS and Hyosung have been developing their own technology to catch-

COMPANY NEWS FROM AROUND THE WORLD

CONERGY STRENGTHENS THAI SOLAR EFFORTS FOLLOWING A SIGNIFICANT ORDER FROM SIAM SOLAR ENERGY

BHEL announced that it has commissioned a fi rst unit of the 2×100 MW Nam Chien hydro project in Vietnam. The hydro power generating set is a development that is likely to open up more opportunities for the state-run major in the fast-growing market.

“This success opens a huge market potential for BHEL not only in the hydro segment but also in the thermal and gas based power plant segments in Vietnam which will witness huge capacity additions in the future,” BHEL said in a statement.

One of the fastest growing economies, Vietnam’s power sector is expected to see an annual growth of 16 percent.

“The major equipment supplied for the project includes hydro turbines, generators, transformers, controls, monitoring and protection system and switchgear,” the statement said. Chien

BHEL AIMING FOR MORE PROJECTS IN SOUTH EAST ASIA AFTER VIETNAM SUCCESS

8 JANUARY/FEBRUARY 2013 POWER INSIDER

NEWS DESK


Hydropower Joint Stock Company of Vietnam had awarded the contract to BHEL.

The Vietnam project is funded by the Indian government. BHEL had the mandate to design, engineering, manufacture, supply and supervision of installation and commissioning of the complete electro-mechanical equipment package for the project. Besides Vietnam, BHEL has hydro electric installations in Thailand, Malaysia, New Zealand, Taiwan, Bhutan, Tajikistan, and Nepal.

According to the statement, the company is executing hydro projects in Rwanda, Afghanistan, Vietnam, DR Congo and Bhutan. Till date, BHEL has contracted equipment for about 550 units of hydro power — having generation capacity of more than 26,000 MW. Out of the total, about 5,000 MW capacity has been contracted overseas.

up with their overseas competitors, although they are still years away from achieving industry dominance.

HVDC has more advantages than alternating-current (AC) systems in transferring power over long distances, making it integral in the transmission of wind or water power plants in coastal areas. It is also an important element for LSIS and Hyosung, as well as larger fi rms such as Hyundai

Heavy Industries and POSCO, as part of their smart grid strategies and to build environmentally-friendly infrastructure. Korean companies have been trying to win orders to build grids in China, Japan and Russia.

KAPES decision to award the contract to LSIS was based on its technology level, quality control and fi nancial stability, each accounting for 70, 20 and 10 percent of the

total score. LSIS reportedly scored substantially higher than Hyosung in technology. An expert from Alstom toured LSIS plants in Busan and Cheonan earlier this month and was impressed by the facilities, according to an LSIS offi cial.

The company has been running a pilot project on Jeju Island since 2009 and technological developments there will create synergy with its

latest deal. A Hyosung spokeswoman downplayed the signifi cance of the win saying, “We already have our own LCC technology and is focusing more on developing VSC.” The HVDC market is currently worth $14 billion and expected to grow to $73 billion by 2020 and $143 billion, according to local brokerages.

ABENGOA COMMENCE OPERATIONS AT THE QINGDAO DESALINATION PLANT IN CHINA

Abengoa SA (ABG), the Spanish company that’s developed desalination plants from Algeria to India, said it’s started commercial operations making salt water potable at the Qingdao facility in China.

Abengoa began building the plant in 2010 and will operate and maintain it for 25 years. During this time, the company is forecasting revenue of at least 750 million euros ($1 billion) from the sale of

water and a further 25 million euros from technical support operations, according to the statement.

The China Desalination Plant, at the second-largest port in northern China in Shandong province will produce 100,000 cubic meters of drinking water a day from seawater, enough to supply the needs of a half- million people, Abengoa said today in a statement.

The project, the fi rst one of its type carried out using a project-fi nance structure entirely fi nanced by local Chinese banks, required a total investment of 135 million euros, according to the statement.


DAEWOO ARE SET TO DELIVER WIND TURBINE TO SOUTH KOREADaewoo Shipbuilding and Marine Engineering Co., the world’s third-largest shipbuilder by revenue, said it will supply South Korea with 10 wind power turbines this year. Daewoo will supply the 2-megawatt capacity turbines to a joint venture with Korea East-West Power Co. The turbines will go to a wind farm project in Younggwang, southwest of Seoul, the company said in a statement.

The project will generate enough electricity to supply 13,000 households a year once it is completed in the third quarter, Daewoo said, without disclosing the project’s cost. The shipbuilder acquired DeWind Inc. from Irvine-based Composite Technology Corp. for about $50 million in 2009 to move into the wind-turbine industry. It is building wind turbines using DeWind technology to meet demand from the U.S. and Canada.



Japan has the world’s third-

largest economy, having achieved remarkable growth

in the second half of the 20th Century after

the devastation of World War II. Japan’s rapid post-war expansion - propelled by highly successful car and consumer electronics industries - ran out of steam by the 1990s under a mounting debt burden that successive governments have failed to address. January 2013 saw Japan post a record trade de� cit of $78bn (£49bn), showing how fragile the Japanese economy still is.

Japan has few domestic energy resources and is only 16% energy self-su� cient. It is the third largest oil consumer in the world behind the United States and China and the third-largest net importer of crude oil. It is the world’s largest importer of lique� ed natural gas (LNG) and second largest importer of coal.

In light of the country’s lack of su� cient domestic hydrocarbon resources, Japanese energy companies

have actively pursued participation in upstream oil and natural gas projects overseas and provide engineering, construction, � nancial, and project management services for energy projects around the world.

Japan’s has ten vertically integrated general electric utilities, with a sprinkling of IPP’s. Japan has a traditionally aggressive environmental policy, and are world leaders in their commitment to reducing greenhouse gases. � e Japanese government cemented this commitment with the historic Kyoto Pact, the world’s � rst climate pact in 1997.

� eir energy saving targets were complicated, however, by the Fukushima disaster. On March 11, 2011, a 9.0 magnitude earthquake struck o� the coast of Sendai, triggering a large tsunami. � e earthquake and ensuing damage resulted in an immediate shutdown of 12,000MW of electric generating capacity at four nuclear power stations.

Before the earthquake, Japan was the third largest consumer of nuclear power in the world, after the US and France, and nuclear power accounted for

about 13% of total energy in 2010. Between the 2011 earthquake and May 2012, Japan lost all of its nuclear capacity, and the nation stated outright their preference for a nuclear free Japan.

As a consequence, Japan has come to rely even more on the fossil fuel imports that the nation was originally trying to move away from. From the 1 Terawatt hour (TWh) of electric power that Japan generated in 2010, 63% of which came from conventional thermal fuels, 27% from nuclear sources, 7% from hydroelectric sources, and 3% from other renewable sources. According to the IEA, the share of thermal generation rose to 73% of total generation in the � rst quarter of 2012, the highest on record as LNG and oil supplanted nuclear power.

� e Japanese Ministry of Economy, Trade and Industry (METI) has estimated that power generation costs could rise by over JPY 3 trillion ($37 billion) per year, an equivalent of about 0.7 percent

BY RACHAEL GARDNER-STEPHENS

JAPAN OVERVIEW

BY RACHAEL GARDNER-STEPHENSJAPAN OVERVIEW

PI_NovDec_Japan_Overview.indd 10 07/03/2013 07:31


of gross domestic product, if utilities continued to replace nuclear energy with thermal power generation. In February 2012 METI’s minister said that electricity costs would need to increase up to 15% while the nuclear plants remained shut. In the past year increased fossil fuel imports were a major contributor to Japan’s record trade de� cit.

Initially, the Japanese government looked set to bow to public pressure and phase out nuclear power, but with the return to o� ce last month of the conservative Liberal Democratic party (LDP) under Shinzo Abe e� ectively killed o� the idea of a non-nuclear Japan. Japan›s trade minister, Toshimitsu Motegi, warned that the new government would not sacri� ce economic growth for a nuclear free Japan.

� e new government said it would take responsibility for allowing reactor restarts after the Nuclear Regulatory Authority issues new safety standards and con� rms the safety of individual units. Construction of Shimane 3 and Ohma 1 will to continue, and the construction of 12 further units could be approved.

� e combination of a struggling economy, energy shortages, and increased cost both � nancially and environmentally that the further use of fossil fuels will instigate means that it is highly unlikely that Japan will obliterate nuclear power from their generation plans. However, public opinion and the perceived safety of


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Nuclear Thermal Hydro New Total

Power Company

No. of Plants

Max Output (MW)

No. of Plants

Max Output (MW)

No. of Plants

Max Output (MW)

No. of Plants

Max Output (MW)

No. of Plants

Max Output (MW)

Hokkaido 1 2,070 11 4,065 53 1,237 2 51 67 7,424

Tohoku 2 3,274 14 10,885 210 2,434 5 225 231 16,818

Tokyo 3 17,308 25 40,148 163 8,982 5 43 196 66,472

Chubu 1 3,617 11 23,969 183 5,218 3 31 198 32,835

Hokuriku 1 1,746 6 4,400 128 1,905 5 7 140 8,058

Kansai 3 9,768 12 16,907 150 8,197 1 10 166 34,882

Chugoku 1 1,280 12 7,801 97 2,906 1 3 111 11,989

Shikoku 1 2,022 4 3,797 58 1,141 2 2 65 6,963

Kyushu 2 5,258 45 11,577 141 3,582 8 2216 196 20,633

Okinawa - - 21 1,933 - - 1 n/a 22 1,933

12 january/february 2013 POWer iNSider

the technology will lead to a very slow revival of the technology, making it difficult to predict what impact it will have on the energy market.

What is clear is the increased pressure on the LNG, oil and coal markets to meet Japans energy requirements. This overview will take a look at these three main markets, the new projects designed to take on greater capacities, and the utilities and IPP’s involved in the market.

THe STruCTure Of THe JaPaNeSe POWer iNduSTryMETI is responsible for formulating Japan’s energy policy. Within METI, the Agency for Natural Resources and Energy (ANRE) is responsible for the rational development of mineral resources, securing stable supplies of energy, promoting efficient energy use, and regulating electricity and other energy industries. The Nuclear and Industrial Safety Agency (NISA) is responsible for the safety of energy facilities and industrial activities, while the Ministry of Foreign Affairs (MOFA) formulates international policies.

The Council for Science and Technology Policy is the top decision-making body in Japan energy research and development. The members include the Prime Minister, the Minister of Economy, Trade and Industry and other ministers, along with knowledgeable stakeholders. In addition, there is also the Research and Development Subcommittee under the Industrial Structure Council that serves as an advisory body to the Minister of Economy, Trade and Industry. Japan’s energy technology strategy is developed by this subcommittee.

Japan’s electricity industry is dominated by 10 privately-owned, integrated power companies that act as regional monopolies, accounting for about 85% of the country’s total installed generating capacity. The remainder is generated by industrial facilities. The largest power company is the Tokyo Electric Power Company (TEPCO), which accounts for 27% of total power generation in the country. These companies also control the country’s regional transmission and distribution infrastructure. Japan’s electricity policies are managed by METI.

For a long time the electric power business in Japan was dominated by these utilities. After a revised Electric Utilities Industry Law went into

effect in 1995, however, the situation has been changing significantly, starting with the liberalization of power generation and partial liberalization of retail sales. A couple of successful private companies have sprung up to take advantage of this law change in both upstream and downstream power markets:

Tokyo Gas: Tokyo Gas are involved in the production, supply and sale of city gas. A major provider of natural gas to Tokyo and the surrounding regions, the company has seen its industrial gas sales rise by an average of 7% per year since the 2003/04 business year, and such sales have been gradually rising to account for 40% of all gas sales in the past two business years. Tokyo Gas has announced their “Challenge 2020 Vision”, which will expand its domestic power generation capacity to 5,000MW by 2020.

JAPEX: Japan Petroleum Exploration Co., Ltd. is engaged in oil and natural gas exploration and production, both in Japan and overseas. Its main operating areas are Hokkaido, Akita, Yamagata and Niigata in Japan. JAPEX’s priorities are to maintain and expand domestic reserves, while putting in place a reliable system for the long-term supply of crude oil and natural gas.

J-Power: Electric Power Development Company was formerly a state-owned enterprise that was privatized in 2004. J-Power operates 16GW of hydroelectric and thermal power plants. It is also

been involved in consulting services for electricity production and environmental protection in 63 countries, mainly in the developing world.

INPEX: INPEX Corporation is among the world’s leading oil and gas exploration and production companies. Headquartered in Tokyo, INPEX has more than 70 projects in 26 countries. While holding upstream oil and gas business as the core, INPEX aims to develop hydrocarbon resources and new energies. INPEX has a 1,400km pipeline network through which it supplies natural gas to Tokyo and eight prefectures. In 2011, INPEX’s natural gas sales amounted to 1.7 billion m3.

JX Nippon: JX Nippon Oil and Energy Corporation’s main business activities include the refining and marketing of petroleum and petrochemical products, importing and selling of gas and coal, the supply of electricity and the developing, manufacture and marketing of fuel cell, solar power generation and storage batteries.

OilUntil 2004, Japan’s oil sector was dominated by the Japan National Oil Corporation ( JNOC), which was formed by the Japanese government in 1967 and charged with promoting oil exploration and production domestically and overseas. In 2004, JNOC’s profitable business units were spun off into new companies in order to introduce greater competition.

Many of JNOC’s activities were taken over by the Japan Oil, Gas and Metals National Corporation ( JOGMEC), a state-run enterprise charged with aiding Japanese companies involved in exploration and production overseas and promoting commodity stockpiling domestically. New companies were formed, of which the two largest are INPEX and JAPEX.

Private Japanese firms dominate the country’s competitive downstream sector, as foreign companies have historically faced regulatory restrictions. But over the last several years, these regulations have been eased, which has led to increased competition in the petroleum-refining sector. Chevron, BP, Shell, and BHP Billiton are among the foreign energy companies involved in providing products and services to the Japanese market.

Before the 2011 earthquake, Japanese utilities began removing oil-fired generation capacity due to higher operational costs. Japanese electric utilities are burning more fuel oil and direct crude to make up for lost nuclear generation. In 2011, Japan’s total oil

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production was roughly 130,000 bbl/d, of which only 5,000 bbl/d was crude oil.

The vast majority of Japan’s oil production comes in the form of refinery gain, resulting from the country’s large petroleum refining sector. Japan has 148 producing oil wells in over 11 fields, according to the Oil and Gas Journal (OGJ). Japan has very limited domestic oil reserves, amounting to 44 million barrels as of January 2012, down from the 58 million barrels in 2007. Japan’s domestic oil reserves are concentrated primarily along the country’s western coastline.

Japan consumed an estimated 4.5 million barrels per day (bbl/d) of oil in 2011. Japan’s oil consumption rose slightly in 2011 by 30,000 bbl/d over 2010 due to some post- disaster reconstruction works and substitution of crude oil and low sulfur fuel oil for the suspended nuclear power after the Fukushima incident. In December 2012, Japanese utilities consumed a total 3.10 million kiloliters of crude and fuel oil in December, up 12.8% from a year earlier.

Japan relies heavily on imports to meet its consumption needs. The government’s goal is to import 40% of the country’s total crude oil imports from Japanese-owned concessions by 2030, up from the current estimated 19%. As a result of the 2011 earthquake and greater need for energy supplies, JOGMEC plans to increase spending more than $1.12 billion, assessing more than 20 projects.

currently, there are several proposed gas-fired power plants scheduled to come online by 2016.

Himeji No.2The Himeji No.2 Power Station, in the Himeji Prefecture, is one of Kansai Electric Power Company’s largest thermal power stations. Currently the power station is undergoing replacement of its aged power generation facilities, with six units slated to go on-stream progressively between October 2013 and October 2015.

Mitsubishi Heavy Industries will undertake installation work together with Kansai, aiming toward achieving the world’s most efficient GTCC power generation facility. For the plant, MHI shipped the first commercial-use unit of their “M501J”. The M501J is MHI’s most advanced gas turbine, having achieved the world’s highest turbine inlet temperature of 1,600 degrees Celsius. The first unit and five additional M501J gas turbines to be delivered later will become the core components at the Himeji No.2 Power Station, each unit producing 486.5MW for a collective total of 2,919MW.

YosHiNouraOkinawa Electric Power Company will extend their facilities at the new Yoshinoura LNG power plant on the island of Okinawa. The plant went into operation in November 2012 with the first unit, and will take the second unit online in May 2013, with units three and four scheduled for operation from 2016. The current capacity of the power plant is 753 MW.

Investment for the project is around 100 billion yen. The power plant will supplied with LNG from Osaka Gas. Okinawa Electric concluded a contract with Osaka Gas to buy 400,000 mt/year of LNG over fiscal period 2012-2038 last year.

joetsuChubu Electric will also develop a newly minted combined cycle LNG power plant in Northern Japan. The Joetsu thermal power plant started commercial operations in July 2012 with its first 595MW unit.

Chubu Electric plans to start up the 595MW No.1-2 CCGT in January 2013, followed by the 595MW No. 2-1 CCGT in July 2013 and the 595MW No. 2-2 CCGT in May 2014. Once all four

Japan is primarily dependent on the Middle East for its crude oil imports, as roughly 87% of Japanese crude oil imports originate from the region, up from 70% in the mid-1980s. Saudi Arabia is the largest source of imports, making up 33% of the import portfolio or about 1.1 million bbl/d of crude oil. The UAE, Qatar, and Iran are other sizeable sources of oil to Japan.

Additionally, Japan is currently looking towards Russia, Southeast Asia, and Africa to geographically diversify its oil imports. As of mid-2011, Japan is substituting some of the lost nuclear fuel for power with low sulfur, heavy crudes for direct burn in power plants from sources in West Africa and Southeast Asia.

GasAccording to OGJ, Japan had 738 billion cubic feet of proven natural gas reserves as of January 2012. Natural gas proven reserves have declined since 2007, when they measured 1.4 Tcf. Most natural gas fields are located along the western coastline.

The number of natural gas-fired power stations is increasing in Japan, and roughly 26% of electricity was natural gas-fired in 2010. LNG accounted for 43% of the fossil fuel mix in 2011, rising from 37% in 2010. Capacity utilization in gas-fired power facilities is close to 80%, so increasing LNG use in the short term is limited. The government has plans to construct more gas-fired power generators, and

14 january/february 2013 power iNsider

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units have begun operation, total output of the power station will be 2,380MW.

The power station uses state-of-the-art multi-shaft combined-cycle power generation with LNG as fuel and will achieve thermal efficiency of greater than 58%, the highest level in Japan. Chubu estimate that when all four units have begun operation, CO2 emissions will be reduced by about 1.6 million tons annually and LNG usage will be reduced by 600,000 tons.

Ohgishima Ohgishma Power, a subsidiary of Tokyo Gas, will build a third unit at the to Ohgishima power station. Ohgishima is a combined cycle LNG power station. Units one and two have a combined generation capacity of approximately 814MW.

Ohgishima Power started construction work on Ohgishima unit 3 in November 2012, aiming to commence operations in fiscal 2015. Unit 3 is designed to have a maximum efficiency of approximately 58% and a generating capacity of approximately 407MW. The total capacity of Ohgishima Power Station will be approximately 1,221MW with the commencement of the Unit 3.

DOwnstream anD impOrtsBecause of its limited natural gas resources, Japan must rely on imports to meet its natural gas needs. Japan began importing LNG from Alaska in 1969, making it a pioneer in the global LNG trade. Due to environmental concerns, the Japanese government has encouraged natural gas consumption in the country. Japan is the world’s largest LNG importer, holding about 33% of the global market in 2011.

In 2010, Japan consumed about 3.7 Tcf of natural gas, importing over 3.4 Tcf of LNG by tanker. As a result of the March 2011 earthquake, Japan’s LNG imports rose 12% in 2011 to 3.8 Tcf. IHS CERA estimated that total natural gas imports increased by a monthly average of 18% annually from April 2011 through February 2012 compared with the pre-earthquake increases of 4% year-on-year between January and March 2011. LNG consumption by the electric utilities rose by 20% annually to a record high of 2.4 Bcf in 2011. In 2012, Japan’s 10 major power utilities consumed 5.05 million mt of LNG in December alone.

Most of Japan’s LNG imports originates from regional suppliers in Southeast Asia, although the country has a fairly balanced portfolio with no one supplier having a market share greater than roughly 20%. Japan’s top five gas suppliers make up 73% of the market share. Qatar, the world’s largest supplier of flexible LNG, overtook Indonesia as the third largest supplier to Japan in 2011. Japanese utility companies signed agreements with QatarGas at the end of 2011 to secure longer term LNG supply.

Japan has 32 operating LNG import terminals with a total gas send-out capacity of 8.7 Tcf/y, well in excess of demand in order to ensure flexibility. The majority of LNG terminals are located in the main population centers of Tokyo, Osaka, and Nagoya, near major urban and manufacturing hubs, and are owned by local power companies, either alone or in partnership with gas companies.

In the future, demand for natural gas is expected to increase steadily due to an increase in prices of other fuels. Increase in environmental awareness is

also fuelling demand for natural gas as it is a clean burning fuel. The focus for the sector currently is to increase imports of LNG and to improve the facilities needed to cope with the increased demand. Five new terminals are under construction, adding between 200 to 300 Bcf/y of capacity.

sOmaJAPEX has launched a plan to build a LNG receiving terminal at Soma port in Fukushima Prefecture by 2018. The company have started the Front-End Engineering Design, and have begun discussions with related government agencies.

“The vaporized LNG gas received at the terminal is to be carried to the Company’s Niigata-Sendai Pipeline, through the connecting pipeline to be connected at Natori City, Miyagi Prefecture,” JAPEX said. The LNG terminal – a first for country’s Pacific coast - will be linked to the pipeline network that supplies Miyagi, Fukushima, Yamagata and Niigata from a gas terminal and gas fields in Niigata on the Sea of Japan coast.

hitachiTokyo Gas is to construct the Hitachi LNG Terminal in Ibaraki port, Hitachi, and to install a Ibaraki-Tochigi Line to connect the Terminal to the existing pipeline in Moka city by 2015. This project was positioned as a part of aggressive expansion of the fundamental infrastructure plan. Under the Challenge 2020 Vision formulated last November, this plan is positioned as one of main pillars of the production and supply infrastructure to deal with the increased demand for natural gas toward 2020, and will improve the stability of overall supply infrastructure by linking the Terminal with the existing three terminals in Tokyo bay.

Tokyo Gas plans to start construction work of the Terminal in late July and aims to commence operations in FY2015, with Ibaraki-Tochigi Line,

which has already been under construction from the side of Tochigi prefecture since January 2012.

Chiyoda Corporation will be the EPC for the project. Chiyoda has been involved in the construction of all Tokyo Gas’s LNG terminals, including Negishi, Sodegaura and Ougishima, since the first LNG terminal in Japan started operation in 1969. Chiyoda has also completed over half of the 32 LNG terminals in Japan, and is constructing three further large LNG terminals in addition to this project.

Tokyo Gas paid ¥3.2 billion to buy the 10.4-hectare port site, and the total investment of ¥120 billion envisions the establishment of an LNG tank with a capacity of 230,000 kiloliters. Also planned are a large jetty used to receive oceangoing LNG tankers, LNG vaporizers and other facilities.

hachinOhe anD KushirOJX Nippon Oil & Energy are to build two new LNG terminals in Hachinohe and Kashiro. The terminals will be run by the wholly owned subsidiary, JX Nippon LNG Service Company Limited, a company set up last year to run all of JX Nippon’s LNG Terminals.

The Hachinohe LNG import terminal is situated in Port Island in the Aomori Prefecture. JX Nippon has been supplying natural gas and LNG in the northern part of the Tohoku region since March 2007 when the existing Hachinohe LNG Satellite Terminal was completed.

The project encompasses the construction of two LNG tanks with a capacity of 140,000 cubic meters each, unloading facilities for LNG tankers, loading facilities for coastal tankers, regasification facilities, and loading facilities for vehicles. JGC will take charge of all EPC work except the LNG tank erection and part of the marine civil work. Work began on the terminal in 2010 and operations are scheduled to begin in April 2015.

JX Nippon will also complete the Kushiro Satellite LNG Terminal by April 2015. The terminal

16 january/february 2013 pOwer insiDer

japan overview



in Hokkaido will receive LNG from Hachinohe and supply the gas to the eastern part of Hokkaido. The terminal will have unloading facilities for LNG coastal tanker, one LNG tank with a capacity of 10,000KL and other related facilities.

The terminals will be supplied with gas from Shell Eastern Trading. JX Nippon has signed a sales and purchase agreement with the Singapore trading arm of Royal Dutch Shell for 200,000 tons per annum of LNG for 17 years. The SPA will come into operation in April 2015.

JoetsuINPEX Corporation is developing a LNG receiving terminal in the city of Joetsu in the Nigata Prefecture. The new terminal, located near the port of Naoetsu, will have a processing capacity of 240t/h of LNG.

INPEX established an LNG Receiving Terminal Construction Division for construction of the facility. It is investing $860m in the project, including construction and land acquisition costs. Test operations at the terminal are expected to commence in 2013 and it is expected to be fully operational by 2014.

INPEX is planning to import LNG from its overseas operations, mainly the Ichthys project in Australia and Abadi project in Indonesia. The new terminal will enable the company to establish a connection between its gas supply network and its overseas assets. The facility includes one berth, a landing bridge, two LNG storage tanks, four LPG storage tanks, a vaporiser, calorific value adjustment units and a boil off gas compressor.

The storage tanks will have a capacity of 180,000kl each and feature dome-shaped roofs. Space for the addition of a third storage tank is also available at the facility. INPEX are also constructing a new 102km natural gas pipeline called the Toyama line. It is expected to be operational during the same time as the new terminal in 2014.

The EPC contract for the terminal was awarded

to Chiyoda Corporation. Construction of the storage tanks is being carried out by a joint venture of Toyo Kanetsu and Shimizu Corporation. Toyo Kanetsu is responsible for the mechanical works and Shimizu Corporation for the civil works. Tao Corporation is responsible for construction of the berth.

CoalCoal, typically used as a base load source for power generation, remains an important fuel source and accounted for 43% of fossil fuel-fired generation in 2011, according to the International Energy Agency. As of mid-2011, Japan had 43GW of coal-fired capacity with approximately 80 coal fired thermal power plants.

Domestic coal production came to an end in 2002 and Japan imported 207 million short tons in 2010, mainly from Australia and Indonesia. Several coal-fired plants experienced significant damage following the 2011 earthquake since they were located near Fukushima. Because of this factor, coal was not used as a substitute for nuclear power and was the only fossil fuel to experience a negative growth in 2011.

However, the last couple of years has seen growth in the sector, with demand for coal increasing and a number of coal fired projects being commissioned to replace dormant nuclear facilities. Before Fukushima, Japan hadn’t approved a coal project since 2009, but in 2012 the government announced that they would be easing the approval process for coal projects, as well as wind and geothermal.

Clean coal technologies are being pursued in the coal sector in efforts to meet environmental targets. Many years of technological development efforts have seen Japan develop the world’s most efficient ultra-supercritical (USC) power generation technology, which is already widely used in coal-fired power generation within the country. In addition, efforts are also proceeding in the development and practical application of next-generation technologies including integrated gasification combined cycle (IGCC) generation and carbon capture and storage (CCS), looking towards the realization of zero-emission coal-fired power generation.

Hirono and HitaCHinakaTEPCO plan to add extra units to their existing plants at Hirono and Hitachinaka. The sixth unit at Hirono will have a 600MW capacity, and the second unit at Hitachinaka will have a capacity of

1000 MW. Both new units will have a heat efficiency rate of 45%, the world’s highest for a coal-fired plant and the same as the existing No.5 Hirono and No.1 Hitachinaka units.

KEPCO hope to have the units up and running for tests in July 2013, despite facing months of delay. Both the Hirono and Hitachinaka power plants were damaged during the earthquake, with the plant’s full capacity not up and running again until some months after the disaster.

The Japanese government are performing a delicate balancing act. The production of energy is an intensely political issue, with the population of Japan holding strong views. On the one hand, the Japanese economy is fragile; like a lot of modern countries, it is struggling to offset debt with kick-starting a struggling economic system. On the other, they are being forced to spend money on fossil fuels and renewables to replace nuclear power.

Japan is still grappling with the fallout of the earthquake and Fukushima disaster, trying to reconcile an understandable skittishness about nuclear power with their need for a plentiful electricity supply, and their commitment to cut down on CO2 emissions. Combined with the fact that Japan is only 16% self sufficient, have a new political establishment and are having to rely on a quixotic import market, Japan has a complicated energy circus.

The approach that Japan is taking is a measured one. Nuclear plants will not come online until they have passed stringent safety tests, and it seems likely that new plants will be built instead of old ones coming back online. The increase in the use of LNG does put Japan at the mercy of importing, but the focus on acquiring stakes in gas fields globally will eventually allow them some control. Though the use of oil and coal have increased, that rate of increase isn’t as high as many other Asian nations.

Japan is also investing billions into renewables, on which we will expand later in the issue. Overall, it is difficult to predict what the Japanese energy market will look like until the government form a concrete policy on nuclear power. However, at present investment in the LNG sector and in renewables like solar and wind seem the best bet for any energy business.



The Samcheok Green Power Project is one of the world’s most ambitious energy complexes.

Currently being constructed in the Gang Won Do province in northeast of South Korea, the plant site will occupy 2.5 million square meters of reclaimed coastal land.

� e plant belongs to state owned utility, Korean Southern Power (KOSPO). � e company’s aim is to provide Korea’s stable grid with a constant supply of

electricity, and are doing so by staying on the cutting edge of energy production.

Despite being coal � red, KOSPO’s Samcheok project will be one of the greenest and most e� cient power plants ever built. For its � rst phase, the plant will feature 4 of the world’s � rst 550MW ultra-supercritical Foster Wheeler CFB boilers – producing a total of 2000MW - � ring imported coals and biomass.

When fully complete, in addition to the CFB boilers, the Samcheok site will generate 1000MW from renewable sources, comprising of wind turbines mounted on the plant’s seawall; solar panels on rooftops and slopes; wave power generation at the seawall, small hydropower at the plant drainage canal, and fuel cells from nearby Korea Gas Corporation.

� e plant infrastructure will include bilateral mooring for coal barges and an indoor coal yard

MOVING MOUNTAINS FOR GREEN ENERGYWITH FOSTER WHEELER AND KOSPO

SAMCHEOK GREEN POWER PROJECT

PI_JanFeb_2013_FosterWheeler_Rev.indd 18 07/03/2013 08:07


to keep coal dry and secure, reducing the spread of coal dust. � e coal will come in on sealed barges and get vacuumed into an underground system of large pipes into the coal store, and an underground conveyer system will then take it up to the boiler islands, meaning that the coal will never be exposed to the outside.

KOSPO have taken this environmentally conscious storage solution to a new level, roofing

the coal store with solar panels. The solar panels, along with the other renewable installations, will power the auxiliary needs like conveying, stacking, and reclaiming, and any excess will get transferred to the grid.

KOSPO also has plans to reuse the ash waste from the plant, aiming to remarket it to the building industry. Ash from the plant’s electrostatic precipitators will be recycled and used as lightweight

aggregate for construction and land reclamation. � e ash will be used to rehabilitate land around old mines by neutralizing the acidic soil.

Even the landscape of South Korea is being cleverly utilized in this exciting project. South Korea in general is a narrow, peninsular landmass that is mountainous with little � atland, and Samcheok in particular is full of � shing villages, national parks and environmentally protected zones. � is leaves little space to build a groundbreaking power plant. KOSPO worked around these restrictions and made the most out of Samcheok’s coast, by recon� guring the landscape in careful consideration of the developments environmental impact.

� e mountain was already deemed industrial land because of its proximity to an LNG re� nery and terminal. To make the most of the limited space, a tiered landscape was chosen for the site. � is innovative method meant less workload, less soil and landmass to remove and therefore saved KOSPO a signi� cant amount of money on the civil works.

� e key words surrounding the Samcheok complex are ‘e� cient’, ‘renewable’ and ‘recycle’. � is makes Samcheok a model power plant, with incredible integration of thermal, renewable and environmentally friendly technologies. KOSPO sees Samcheok as a template for future coal � red power plants around the world.

As such, KOSPO has strategically promoted and publicized this impressive facility, setting the stage for the next generation of plants that will use these cleaner technologies. KOSPO’s president, Mr. Lee, has played an instrumental part by inviting press and industry insiders to the plant during the construction phase, and will continue to do so during operation, in order to demonstrate the ambitious undertaking for others seeking to do the same. � e site will also contain a world leading CO2 research center employing technical experts from around the globe to continue development and reduce emissions.

So what made a state owned utility like KOSPO want to develop such an ambitious and revolutionary project, utilizing such an array of di� erent energy solutions? Primarily, a project of this scale and cost could not have been completed by anything other than a state managed and funded utility. � e project, which is expected to cost in excess of $3 billion, is unlikely to produce the sort of returns that an IPP or bank would need to make it a worthwhile investment. Instead, it is a strategic project � nanced by the government to secure their energy security long term.

South Korea and KOSPO need to think about energy security. KOSPO is a fast growing company with South Korea’s energy demands increasing yearly. � is is a challenge compounded by South Korea’s dearth of natural resources; Korea is a major importer of fuels. Without the resources that nations such as China and India can exploit, South Korea is forever at the mercy of rising import costs and an unpredictable market.

� is rise in costs is simply driven by demand; most existing conventional thermal plants can only burn high-grade fuels, and the supply of good quality coal is declining, becoming more expensive. KOSPO could see that there were advantages in � nding a way to exploit cheaper, low-grade fuels. Poor quality coal comes at a substantial discount, but that

MOVING MOUNTAINS FOR GREEN ENERGY



20 january/february 2013 power insider

comes with the price of major challenges for efficient combustion. KOSPO undertook a three and a half year study in order to identify the right technology to have flexibility in fuel procurement and ability to burn low grades efficiently.

It was Foster Wheeler that presented KOSPO with the idea of Circulating Fluidized-Bed (CFB) technology. CFB technology has several established benefits such as improved efficiency, reduced emissions, high fuel flexibility, high reliability and lower maintenance costs that combine to make this boiler technology a highly competitive option for large scale utility applications.

CFB boilers burn fuels and waste materials like no other technology, with no flame or high temperatures. With CFB technology, combustion occurs at about 850C - far lower than the 1500C required for a pulverized coal (PC) boiler. An additional disadvantage of the PC boiler is that melting ash has a high propensity for slagging in the furnace and soot blowing is required. CFB technology takes these common operational difficulties out of the equation.

Another significant feature of CFB technology is its ability to tightly control nitrogen oxides (NOx) and sulphur dioxide (SO2) emissions in the boiler, which can avoid the EPC capital costs associated with the installation of selective catalytic reduction (SCR) and FGD equipment. For a 600MW plant for example, CAPEX savings can exceed $100 million. In addition, the operating costs for ammonia and catalyst management for a SCR are also importantly avoided.

Finally, and most important for KOSPO, CFB steam generators afford the maximum flexibility in fuel selection and can handle all coal types including low rank coals, petroleum coke, coal slurries and anthracite culm, as well as biomass and peat. This fuel

procurement flexibility for CFB steam generators provides long-term fuel security and the potential to save millions of dollars by providing full access to discounted low quality fuels in the global fuel market.

CFB technology originated from a number of small companies wishing to utilize the waste produced by their industries, such as the waste from paper and sugar mills, biomass and agriculture. Innovative companies, like Foster Wheeler, realized these wastes could be burned to provide energy for these facilities. Over the past 35 years, CFB technology has evolved from robust small-scale industrial boilers for burning such difficult fuels to large-scale utility power applications like Samcheok.

Foster Wheeler has been a pioneer of that development, particularly in the scaling up of the technology. Foster Wheeler is responsible for making CFB larger, more efficient, and commercially viable for large power projects. Thus, for the first time in its history CFB technology can challenge PC technology in electricity generation applications, with more than 80 CFB units rated above 200 MW operating worldwide today.

Foster Wheeler is also responsible for taking the technology supercritical. Supercritical boilers pressurize the steam to a far higher level, so that it can absorb more heat and translate into high efficiency. There is only one power plant operating a supercritical CFB boiler in the world, which demonstrates the cutting edge nature of Foster Wheeler’s technology.

That plant is the Lagisza power plant in Poland, which uses a 460MW supercritical CFB boiler and has been in successful commercial operation since 2009. It was to this plant that Foster Wheeler took KOSPO to demonstrate the potential and viability of supercritical CFB technology. KOSPO was very

impressed and began technical discussions with Foster Wheeler about the feasibility of taking the technology to Samcheok, and scaling it up.

Foster Wheeler confidently asserted that not only could they make the technology bigger, taking the boiler from 460MW to 550MW, but could also take the technology to ultra-supercritical steam conditions (over 600C steam temperatures), improving the CFB’s efficiency even more.

Whilst this posed some risks, KOSPO considered them manageable, and an agreement was reached to bring the world’s first and largest ultra-supercritical CFB boilers to Samcheok. This makes Samcheok not only an important milestone for Foster Wheeler, but for the power industry globally.

The Lagisza plant’s design provided a solid base for scaling up the technology to the 550MW Samcheok units. The fundamental design was created in Foster Wheeler’s Finnish engineering center, with the detailed design coming from Foster Wheeler’s Shanghai base. Hyundai is the lead EPC for the project and will be responsible for the erection and installation of the CFB boilers.

In the CFB combustion process, the fuel can be gravity fed into the fuel chutes only coarsely crushed. Because of the forgiving nature of the CFB process, the fuel doesn’t need to undergo the complex processes required for pulverised coal combustion technology, such as fine grinding and drying.

The fuel chutes feed the fuel to ports in the lower section of the CFB furnace, where it is fluidized by primary combustion air flowing through hundreds of specially designed nozzles in the floor of the furnace. Additional air, called secondary combustion air, is fed through ports located higher up in the furnace walls. Both the primary and secondary combustion air supports the burning, fluidization and vigorous



doesn’t exist in high mass flux spiral wound designs.Another advanced design feature of Foster

Wheeler’s CFBs is a high performance particle-to-steam heat exchanger called an IntrexTM, which is located between the loop seals and the furnace. The IntrexTM efficiently extracts high temperature heat from the hot particles in the CFB to produce high temperature superheat/reheat steam.

The IntrexTM also solves the difficult problem of corrosion in the boiler’s final superheaters. In a conventional PC boiler, the final super-heater coils are located at the top of the furnace exposed to all the corrosive elements in the boiler fuel gas. These coils are the most susceptible to corrosion since they operate at the highest metal temperature which increases as the temperature of the steam increases like in an ultra-supercritical boiler. To overcome this, PC boilers are forced to use expensive alloys for these coils and still require frequent maintenance and replacement depending on the fuel quality.

To avoid this, Foster Wheeler CFB’s locate these final superheating/reheater coils in their IntrexTM, submerging them in a hot bed of solids fluidized with clean air. The coils are protected from the corrosive boiler flue gases allowing the use of lower cost alloys and steels while also increasing the ability of the CFB to fire less costly lower quality fuels or achieve higher steam temperatures for the same fuel. Further, since the hot solids are in direct contact with the coils, the heat transfer is very efficient resulting in a very compact design saving cost and space.

High performance tubing is being sourced from reputable players like Vallourec & Mannesmann and Sumitomo. These companies are playing a major role in the production of common and

mixing of the solid fuel, limestone and ash particles, allowing the CFB to cleanly burn almost any combustible material.

The particles eventually reach the top of the furnace and then pass through compact solid separators that capture and return most of them back to the furnace. The compact separators are an advanced design feature of Foster Wheeler’s CFB technology, which is made up of steam-cooled panels that are fully integrated with the furnace.

After being separated from the hot furnace gas, the captured particles flow from the bottom of the solid separators, pass through return passages and then into loop seals. The loop seals maintain the pressure balance between the furnace and the exit of the separators, allowing the solids to flow back into the furnace even though the solids are travelling into a higher-pressure zone. Foster Wheeler’s differential loop seal design is proven in the industry for being highly reliable.

The steam side of the CFB is based on the low mass flux BENSON once through technology from Siemens, because of the multitude of advantages it brings. Traditional supercritical boilers use spiral wound tubing to even out the uneven heat absorption in conventional PC boilers. However, this complicates the boiler and structure steel design since the walls of the boiler are now a spiral group of tubes. To prevent them from deformation, the furnace must be supported both horizontally and vertically. This intricate support system is more costly since it requires more steel and is complicated to build but it also makes repairing the boiler more difficult since the bracing must be moved out of the way and the boiler temporarily supported during the repair.

Foster Wheeler’s supercritical boilers utilize vertical tubes, allowing the boiler to be top supported, avoiding the complicated structure of the spiral wound boilers. The vertical tube design is easier to build and work on, and is more efficient since the distance the steam travels (which equates to pressure loss) is far shorter.

Unlike PC units with uneven heat input in burner zones, the CFB combustion temperatures are uniform over the entire furnace resulting in uniform heat absorption for all boiler tubes, unlike conventional designs. For extra protection, small boiler tubes are used, reducing the weight of the water in the tube so buoyancy effects cause an increase in the water/steam flow for any tube receiving more heat. This low mass flux design is a passive self-cooling mechanism that

‘Foster Wheeler’s supercritical boilers utilise vertical tubes, alloWing the boiler to be top supported, avoiding the complicated structure oF the spiral Wound boilers. the vertical tube design is easier to build and Work on, and is more eFFicient since the distance the steam travels (Which equates to pressure loss) is Far shorter.’




high-end seamless tubing. Hyundai is sourcing structural steel locally.

As previously stated, the Foster Wheeler technology will allow KOSPO to use a wide range of fuels. In general, the fuel quality in Asia is declining, and the fuel supply chain can rapidly change. By using CFB technology and having wide fuel specifications KOSPO can avoid getting stuck with a limited or expensive supply chain.

KOSPO will be able to buy different fuels over the life of the project, and Foster Wheeler has given KOSPO a wide range of coal possibilities and specifications. Initially, the project will utilize a lot of low grade Indonesian sub bituminous coal, and some petroleum coke as well.

Potentially, the CFB boilers could be able to fire up to 20% biomass, totaling a possible 400 MW. The Korean Renewable Energy portfolio from the

government provides great support for biomass, as it is an abundant domestic resource. Pellets, which make good feedstock, can also be imported.

Construction schedule of the plant is on time. At the time of writing, site excavation is proceeding and the space for the boiler has been cleared, with the foundations of the boilers being poured. Foster Wheeler is well ahead in full detailed design, and will start supplying steel and boiler components this year.

The main erection of the boiler is due to take place over 2014. The four units will be erected simultaneously, though stages of construction will be staggered between components in order to maximize the productivity of the workforce through space limitation and also minimize costs.

The Samcheok Green Energy Project is a fantastically engineered combination of traditional electricity generation techniques with groundbreaking green technology. Despite being coal fired, this project demonstrates technology that can not only use low-grade coal, but has the potential to utilize biomass as well. This is made possible by the development of ultra-supercritical CFB boilers, which is surely the future of thermal technology. Most importantly, the Samcheok Green Power Project demonstrates the most logical approach to the global energy crisis. By using such a wide range of green and thermal technologies to produce it’s 5000 MW capacity, KOSPO is not reliant on a specific fuel source, allowing them maximum flexibility whilst still be environmentally conscious. By breaking these boundaries, KOSPO and Foster Wheeler have offered the energy industry a glimpse into the future of power generation.

This article was co-written by Bob Giglio Vice President of Strategic Business Planning and Development at Foster Wheeler Global Power Group and Rachael Gardner-Stephens, Assistant Editor for Power Insider Asia.



RENEWABLE ENERGY REVOLUTION FOR THE EMPIRE OF THE SUN


BY RACHAEL GARDNER-STEPHENS

JAPAN RENEWABLE OVERVIEW

PI_NovDec_Japan_Renewables_Rev.indd 24 07/03/2013 07:34


After the 2011 earthquake and the Fukushima disaster, Japan has been re-examining its

approach to energy use and electricity generation, trying to balance boosting the fragile economy and readjusting Japan’s nuclear power-dependent energy policy to minimize electricity shortages.

Initially, Japan had to rely on the already well-established fossil fuels infrastructure to avoid nationwide electricity shortages, but the Japanese government, energy industry and population are aware that the island nation cannot a� ord to continue to rely on imports, and cannot allow the use of fossil fuels to boost CO2 emissions.

As a result, the industry and government have showed a renewed interest for Japan’s infant renewable energy market. Japan’s previous administration, the Democratic Party, recommended that renewable energy make up 40% of Japan’s electricity supply by the early 2030s, from the current 8%. Yoshihiko Noda, the Democratic Party leader also oversaw the introduction of a competitive feed-in tari� (FiT) for renewables in July 2012. � is FiT requires utilities to buy power from renewable energy providers at premium

prices, and has kick-started industries such as solar and wind.

� is renewable energy overview will take a look at the solar, biomass, geothermal and hydropower markets, seeing how the earthquake, the struggling economy and government support has a� ected them, and at what new projects are planned for Japan.

HARNESSING THE LAND OF THE RISING SUN: SOLAR POWERJapan currently has installed solar capacity of 4,914MW, making Japan the third largest nation in terms of solar power. Japan is also the world leader in manufacturing solar cells, modules and other equipment required for solar power generation. Solar has bene� tted enormously from the FiT. Currently, regional power � rms pay 48 yen per kWh for surplus electricity from solar panel owners of less than 10 kW and 24 yen for surplus power from owners of 10 to 500 kW, almost triple the industry standard.

� e FiT has stimulated enormous development. Solar cell and module shipments increased by 80% in Japan in July, August, and September 2012.



Small solar panel owners - householders and small businesses - sold 50% more power to utilities last year than in 2010, with owners selling a total of 2,150GW hours to power utilities in 2012. Japan’s 10 regional power companies spent a total 96 billion yen for surplus solar power from house owners and small businesses. � at’s quite a leap from the 1,400GWh sold in 2010.

� e program has also boosted investments in utility-scale solar projects. Approximately 1.5GW of solar power projects quali� ed for the government incentives, and in the two months after Japan started o� ering FiT, applications for 155 solar projects each with a capacity of at least 1MW were made.

� is solar boom may be coming to an end, however, as the Japanese government will this year review and most likely reduce the FiT, possibly by as much as 12%, by the start of April 2013. � is is because of the dramatic drop in costs to install solar systems, with solar panel prices having dropped to $0.80 per watt from $0.99 per watt in a year. � e FiT for solar could fall to as low as 37 yen per kWh for 20 years. Nevertheless, a number of notable utility scale projects have been commissioned in Japan.

OitaMarubeni Corporation is planning the construction of a large scale solar power plant in the Oita Prefecture. Approximately 350,000 solar panels will be used, covering a 105 hectare area. � e 81.5MW project is slated to cost 2.4 billion yen.Marubeni is to create a new special purpose company and start plant construction from November this year. � e commissioning and start of the power plant are scheduled after March 2014. � e expected annual power generation will be able to power 30,000 ordinary houses. � e generated power will be sold to Kyushu Electric over 20 years.

KagoshimaA project already under construction is at Kagoshima. Another enormous project, the solar park will have a 70MW capacity. � e plant will be operated by

Kagoshima Mega Solar Power Corp, and is will be completed by autumn 2013.

Kyocera Corporation, along with six other companies, established Kagoshima Mega Solar Power Corporation, for the sole purpose of operating the 70MW solar power plant. � e power generated will be purchased by Kyushu Electric. � e total project cost is estimated at approximately 27 billion yen, with Mizuho Corporate Bank, Ltd. set to devise a � nancing plan for the project.

� e Kyocera Group will be responsible for the supply of the solar modules and part of the construction & maintenance of the system. SMA Solar Technology will supply the inverters. Electricity generated will provide the equivalent power for

roughly 22,000 average households and will help to o� set roughly 25,000 tons of CO2 per year.

SetouchiA group including IBM and Goldman Sachs has won approval to build Japan’s largest solar plant of 250MW in the southern city of Setouchi. Seven companies will contribute to the enormous project in Japan’s Okayama prefecture for a total cost of between 65.6 billion yen and 86.1 billion yen. Other � rms involved in the project include Japan’s telecommunications provider Nippon Telegraph and Telephone West Corp and engineering group Toyo Engineering Corp.

� e companies are considering tapping institutional investors by means of a securitisation technique to fetch funds for the project. Basic plans for the solar power plant will be drawn by March 2013. Construction of the solar plant will begin in June 2013, with commercial operations due to start in April 2016.

Minami Soma Minami Soma in Fukushima Prefecture has signed an agreement with Toshiba to build a large scale solar park. Parts of Minami Soma are around 10 kilometers from the Fukushima Daiichi nuclear power plant, and land there has been contaminated by radiation fallout.

Toshiba and the city authorities will jointly invest $380 million to build the solar plant as part of the reconstruction of the city. � e plant will have a total capacity to generate 100MW electricity. According to a Toshiba spokesperson, the plant is set to be operational in April 2014.

CSD SolarCosmo Oil, Showa Shell Sekiyu and the Development Bank of Japan plan to launch a new company to run “mega solar” power plants. � e new company, called

The DEIF Group: sales, training, and competence centres in Brazil, China, Denmark, France, Germany, India, Norway, Singapore, UK, and USA

DEIF Asia Pacific Pte Ltd · 31, Bukit Batok Crescent #01-16 · The Splendour · Singapore 658070 · Tel.: +65-69335300 · [email protected] · www.deif.com

DEIF Asia Pacific Pte Ltd

Following 10 years of dedicated representation in

Singapore by Power Instruments, DEIF is pleased to

announce the opening of DEIF Asia Pacific Pte Ltd on

1 January 2013.

Part of the DEIF Group’s continued efforts to broaden

the group’s infrastructure and extend our global reach,

the new team’s 20 skilled experts offer presales support,

intensive product and application training, engineering,

commissioning of simple as well as award-winning system

solutions, service and repair.

A global group with offices in 10 key markets and distributors in an additional 35 countries,

DEIF develops market-leading energy and generator control solutions for the power generation

industry and marine and offshore markets.

DEIF Asia Pacific Pte Ltd covers

the following markets: Australia,

Cambodia, Indonesia, Malaysia,

Myanmar, New Zealand, Papua

New Guinea, Philippines, Singapore,

Taiwan, Thailand, and Vietnam.

JAPAN RENEWABLE OVERVIEW


The DEIF Group: sales, training, and competence centres in Brazil, China, Denmark, France, Germany, India, Norway, Singapore, UK, and USA

DEIF Asia Pacific Pte Ltd · 31, Bukit Batok Crescent #01-16 · The Splendour · Singapore 658070 · Tel.: +65-69335300 · [email protected] · www.deif.com

DEIF Asia Pacific Pte Ltd

Following 10 years of dedicated representation in

Singapore by Power Instruments, DEIF is pleased to

announce the opening of DEIF Asia Pacific Pte Ltd on

1 January 2013.

Part of the DEIF Group’s continued efforts to broaden

the group’s infrastructure and extend our global reach,

the new team’s 20 skilled experts offer presales support,

intensive product and application training, engineering,

commissioning of simple as well as award-winning system

solutions, service and repair.

A global group with offices in 10 key markets and distributors in an additional 35 countries,

DEIF develops market-leading energy and generator control solutions for the power generation

industry and marine and offshore markets.

DEIF Asia Pacific Pte Ltd covers

the following markets: Australia,

Cambodia, Indonesia, Malaysia,

Myanmar, New Zealand, Papua

New Guinea, Philippines, Singapore,

Taiwan, Thailand, and Vietnam.


CSD Solar, will be launched at the end of January 2013. Each contributing company will invest in the project to build solar plants at eight locations on the sites of former oil production facilities, hoping to begin power generation by the year-end.

The new facilities will have a total generation capacity of about 30MW, and the electricity generated will be sold to local power companies. Locations include the former Ohgishima Oil Terminal site, and 7 sites formerly used as oil depots by Cosmo Oil. The sites include Hitachi, Oita, Tokushima, and Taniyama. The solar panels for the projects will be supplied by Solar Frontier, a subsidiary of Show Shell Sekiyu.

Further Domestic Investments Idemitsu Kousan will build a mega solar panel with an output capacity of 10MW in a former military oil refinery in Himeji. They Hope to start the project in March 2014. When they reach their expected capacity of 13MW, they will fill the needs of approximately 3800 households.

Osaka Gas will build three mega solar cell-based power generation plants in western Japan. The plants will be built in Osaka, Wakayama and Okayama prefectures with a combined output capacity of 3.5MW, which is equivalent to the combined consumption of 915 households. Osaka Gas will invest 1 billion yen to build the plants, which are expected to start generation by next March. The company will sell the electricity generated in the three plants to local utilities.

Japan Asia Group and Solar Frontier have signed a memorandum of understanding (MOU) to cooperate on promoting solar power businesses in Japan. Solar Frontier plans to provide products and services for JAG on the projects it is handling that total over 100MW, which is enough to power 30,000 Japanese households. Japan Asia Group is reported to be investing over 150 billion yen into solar power.

difference in power generation, as about 73% of Japan is forested, mountainous and not usable for agricultural, industrial or residential use. However, there is a small amount of unused residue available from major food crops grown in Japan, such as rice, corn and wheat, that amounts to about 14 million metric tons per year.

The amount of woody biomass in the country is a slightly different story. According to a 2008 survey of annual potential amounts of woody biomass in Japan, it is estimated that on average nearly 35 million metric tons of wood residuals are available annually in Japan from logging, forestry and construction activities.

There are 61 boiler and turbine power generation plants in Japan (excluding refuse incineration plants) that utilize biomass, as well as 10 gasification and gas engine plants, and 14 power plants that are co-firing biomass with coal.

The biomass industry is another renewable technology that has received significant government backing in the form of an aggressive FiT, with electricity sold from biomass fetching 33.6 yen per kWh. Despite this, biomass has seen a far slower ascent, with only one project applying for the tariff in the first months after the tariffs introduction. There are a number of projects worth noting, however, and they are detailed below.

GonoikeGonoike biomass power plant, in the Kashima Coastal Industrial Zone, is a facility that is fueled completely by recycled materials. Gonoike Bioenergy Corporation (GBC) is a special purpose company in the on-site power generation business. Headquartered in Hiroshima, GBC was jointly established by Chugoku Lumber and MC in 2005, and currently runs the Gonoike biomass power plant.

Using leftover sawdust and bark from Chugoku Lumber’s nearby Kashima saw mill operations

Foreign InvestorsAmerican SunPower has extended its sales agreement with Japanese electronics giant Toshiba to 2018, and expects to deliver over 100MW of solar panels during that time. SunPower also found a new customer in Japanese integrator Kubokura Densetsu, which plans to install 540kW of SunPower’s solar panels on leased rooftops in the Kanagawa Prefecture.

Chinese Chaori Solar has already exported as much as 50 MW of solar power components to Japan this year, accounting for 10% of the companies exports. Additionally, German SolarWorld has set up a sales office in Tokyo, and China-based Yingli Green Energy set up a Japanese subsidiary in 2012. Canadian Solar, which runs factories in China, went a step further and announced in May that it would set up a solar panel factory in Japan. Suntech Power bought a Japanese solar panel maker in 2006 and saw its sales in that market grow from 2009 through 2011.

These numerous projects are the tip of the solar iceberg, with additional projects being planned throughout Japan from 1 to 250MW, involving both domestic companies and global competitors. Solar power is experiencing a powerful boom in Japan with plenty of opportunity for investment.

Waste to energy and BiomassThe Japanese government is aiming for biomass resources to account for roughly 5% of all power consumed by households throughout Japan by 2020. This is a huge leap from the approximate capacity of 0.3%. There is an abundant supply of municipal solid waste (MSW) in Japan, and is the largest user of thermal treatment of MSW in the world, consuming 40 million tons per year. Since there are only about 190 MSW power generation facilities out of about 1,900 incineration facilities in Japan, there is still room for growth.

Outside of MSW, there isn’t enough land to grow energy crops on a scale that would make a significant

28 january/february 2013 poWer insider

japan renewable overview


instead of fossil fuels, GBC is able to produce clean electricity and steam at the Gonoike plant, the largest biomass-powered facility in Japan. The plant generates 21MW of electricity, which is used for Chugoku Lumber’s wood processing operations and other activities. Excess power is sold to power companies in Japan.

There are several other commercial woody biomass-only plants across Japan. The first wood-fired power station in Japan capable of generating more than 10MW was fired up beginning in 2006 by First Energy Service Co. in Iwakuni City. Agatsuma Biopower, a 13.6MW power plant in Gunma Prefecture is owned by Orix Corp. and Tokyo Gas Co. Ltd. The 33MW Kawasaki biomass power is fueled by 180,000 tons of wood chips per year, and is operated by Kawasaki Biomass Electric Power and Japan Bio Energy Co. Ltd.

Oji ProjectsOji, the second-biggest paper producer by revenue, plans to spend 20 billion yen to build two biomass power plants fuelled by wood in Hokkaido and Kyushu. The company plans to start selling electricity in about three years. Potential customers for power from the two plants would include Kyushu Electric and Hokkaido Electric, with potential sales of 2 billion yen a year to each utility.

KochiSeveral Japanese entities have formed a joint venture company called Green Power Corporation, focused on biomass power development. Tosa Electric Railway Co. Ltd., Kochi Prefecture Federation of Forest Owner’s Cooperative Associations, and Idemitsu Kosan Co. Ltd. will make up the JV. According to information released by the group, the new company will aim to begin operation of a wood-fired power plant in April 2015. The facility will be located in Kochi.

Information published by the three parties specifies that the proposed facility would be the first integrated power plant in Japan to include the crushing and drying processes for woody biomass. Together, the three partners have contributed 250 million yen to the joint venture. Once complete, the 5MW facility would be expected to generate approximately 26MW of power each year, and consume an estimated 70,000 to 80,000 tons of woody biomass annually.

Recycling FukushimaThere is a huge amount of rubble and debris from the 2011 earthquake, a significant proportion of which is contaminated, even radioactive. Japanese officials have approved a plan to deal with this debris, by funding the ramp-up of several biomass plants specifically to process it.

An estimated 70% of the 22 million-plus-tons of waste in Iwate, Miyagi, and Fukushima prefectures, is wood. Japan’s Forestry reportedly has earmarked 9.5 billion yen to cover up to half the costs for building the four 1.5MW biomass plants in Iwate and Miyagi Prefectures. Once they run out of debris from the disasters, they’ll switch to processing wood from lumber and paper mills.

Overseas Ventures: MyanmarJapan Biofuel Co., Myanmar Biotech Co., and the

Tokyo Electric Power Company will work together on a $1.5 million biomass project. The research project will look into converting rice husk gas into electricity. Japan’s New Energy and Industrial Technology Development Organization will contribute over $1 million, while Biofuel Co. will contribute $450,000. San Pya Rice Mill in the Daydaye Township and Doe Le Tha Mar Rice Mill in Nyaungdon Township will start a trial run for the project.

The rice husk gas will be used in the production of high-standard rice and rice products in Rangoon, Pegu and Naypyitaw. The extra electric power will be distributed to nearby villages.

The project will be carried out with the support of the METI. The Myanmar Rice and Paddy Traders Association and the Myanmar Rice Millers’ Association will also cooperate in the project.

Japan is still investigating the potential of biomass. Waste to energy and biomass combustion already has a robust industry, and with the development of further technology, will only continue to grow. Whilst resources are limited with agricultural biomass, the government and the industry have acknowledged and are encouraging its place in renewable electricity generation.

Swimming in Potential: geothermal PowerSlated as one of the most safe and environmentally friendly energy sources, Japan has an enormous 23.5GW potential capacity of geothermal power. Volcanic Japan has about 28,000, putting them third in the world after Indonesia and the United States in geothermal energy reserves, but Japan is just eighth in actual output.

Japan’s first geothermal power plant started operating in Iwate Prefecture, next to Akita Prefecture, in 1966. There are now 17 geothermal plants operating nationwide, including nine in designated national parks and monuments. The existing plants produce 535MW of geothermal

energy, contributing about 0.2% of the country’s total energy output.

Japan also has the most advanced technologies on geothermal exploration and development, which are used not only domestically but globally as well. There is spectacular opportunity for development in this sector, but growth has been quite slow; no plants with a capacity of more than 10,000kW have been built for 16 years.

This is because close to 80% of Japan’s geothermal reserves are in areas designated as national parks and monuments. Many of the potential sites are close to Japan’s prized ‘onsen’; spa resorts which pull in millions in tourism every year. The operators of the onsen worry that a nearby geothermal plant would cause the hot springs to dry up (see figure 1 for the pros and cons of geothermal power).

Despite these issues, the government have thrown their weight behind geothermal. In Japan’s Renewable Portfolio Standard, METI suggested adding 600MW of geothermal energy over 10 years. The government relaxed the ban on building in five protected areas after the Fukushima accident, and geothermal has also benefitted from the FiT, with a similar cost per kWh to solar power.

METI has also earmarked about $29 million in subsidies to encourage communities and private investors to develop geothermal sources. Most of the money will be used to guarantee loans and fund research and drilling. METI will also support private companies and universities that both research and make new geothermal developments. As a result of these investments and policies, research agencies have predicted that geothermal capacity in Japan could grow almost fourfold to 2GW by the 2020’s. The rest of this section will take a look at the new projects that mark the beginning of this growth in Japan.

TsuchiyuLocated nine miles southwest of Fukushima city,


the hot spring resort of Tsuchiyu Onsen hopes to be generating 250 kilowatts of electricity at a new geothermal plant by spring 2014.

Hidden away in the surrounding mountains, the plant will be the first to be built inside a national park.Though onsen owners are usually the staunchest opponents of geothermal development, Tsyuchiyu has seen a steep decline in tourism after the earthquake because of the resorts proximity to Fukushima.

The new power plant will use the binary cycle method for its generation, meaning the heat from hot spring water is used to boil low boiling point liquids, like ammonia, to power a turbine. The binary method is significant because it doesn’t require new wells to be dug, and therefore cuts down on construction costs significantly.

The Tsuchiyu power plant is being planned to offer an output of 500 kilowatts to begin with, but that is expected to be increased to 1,000 kilowatts at a later time. With the electricity the plant generates being sold to Tohoku Electric under the generous FiT, the resort expects to make the 300 million yen development costs back in roughly seven years. The revenue will also be used to revive the local area.

The Akita PrefectureThe Akita Prefecture is a hotspot for geothermal activity, and there are a number of studies currently being carried out. Mitsui Oil Exploration Co., Ltd. (MOECO) will participate in a joint geothermal energy development study at the Amemasu-dake and the Oyasu areas with Idemitsu Kosan and INPEX CORPORATION. Idemitsu and INPEX commenced the study in June 2011 and have already conducted geological, gravity and electro-magnetic surveys. MOECO will jointly conduct further survey and evaluation for geothermal development with Idemitsu and INPEX.

In another joint venture in the Akita Prefecture, J-Power, Mitsubishi Materials Corp. and Mitsubishi Gas Chemical Co. have set up the Electric Power Development Company to study feasibility of

geothermal power generation in Yuzawa.The joint venture is capitalized at 176.5 million yen, half of which is provided by J-Power. Mitsubishi Materials and Mitsubishi Gas Chemical have a stake of 30% and 20%, respectively.

J-Power and Mitsubishi Materials had been conducting a survey into resources for geothermal development by using a well of New Energy and Industrial Technology Development Organization, or NEDO, in Yuzawa’s Wasabizawa area. There is a possibility that a plant could be built with a capacity between 30MW and 60MW, but operations are not estimated to start before 2020.

IwateA new geothermal power plant close to Hachimantai in Iwate Prefecture could open as early as 2015,

following the signing of an agreement between the city and a JV of JFE Engineering Corp., Japan Metals & Chemicals Co., and Geothermal Engineering Co.

The plant is to be constructed on the site of a former ski resort on the outskirts of the city of Hachimantai. Since 2009, the companies have surveyed the area for underground resources useable for power generation, such as steam and hot water. They have confirmed as much as 50MW worth of resources, but will first build a facility capable of producing 7MW.

Geothermal equipment industryJapanese companies and conglomerates have positioned themselves at the top of the global geothermal equipment market. Multiple companies export their technology and expertise to nations such as Iceland and Indonesia. Toshiba, Mitsubishi Heavy Industries and Fuji Electric, control nearly 70% of the global market for geothermal turbines. Here are just a handful of the some of their activities:

Fuji Electric was involved in the creation of the world’s biggest geothermal power plant. In May 2010, Fuji delivered all of the equipment used in the world’s largest single unit geothermal power generation facility, with a capacity of 140MW, to the Nga Awa Purua Geothermal Power Station in New Zealand.

Mitsubishi Heavy Industries are to build five 45MW geothermal power plants for Iceland’s Reykjavik Energy. Mitsubishi will also build a 50MW geothermal power plant in the western Mexican state of Michoacan. The facility, which will be completed in December 2014, will be the twelfth geothermal power plant delivered by Mitsubishi to Mexico. The power plant is part of the Los Azufres III project, which the Japanese company has provided with engineering, manufacturing, acquisition and installation services.

Marubeni Corporation and Toshiba Corporation will cooperate in the construction of the Patuha Unit 1 project, a 55MW geothermal power plant in West Java, Indonesia. Marubeni will act as a main contractor and oversee management of the project

pros Cons

Can provide energy 24/7 with up to 95% efficiency.

Geothermal struggles under limited govern-ment support/funding throughout asia.

Geothermal doesn’t emit heat to the atmo-sphere, which helps to reduce the urban heat island phenomenon.

developments cause tensions between local business interests, environmentalists and the geothermal industry.

the long-term cost of geothermal power could be less than coal. once reserves are confirmed and a power plant built, the steam that fuels turbines at the plant is virtually free.

a 20 mW geothermal power plant requires an initial $7 million to assess, and then another $20-$40 million to drill. the risk of losing that investment is high. one mW of geothermal energy requires an investment of about $3.5 million, versus $1.2 million for coal energy.

there is no clear case of a geothermal development causing a hot spring to dry up in Japan, and the technology now exists to detect issues and reduce risks.

in two known cases, geothermal power developments have caused hot springs to dry up. one such case was recorded in the 1970s in steamboat springs, nevada.

Geothermal is unaffected by unpredictable weather patterns.

most of the promising sites are located inside national parks or spa resorts.

heat within 10,000 meters of the earth’s crust contains 50,000 times more energy than all the oil and natural gas resources in the world.

Geothermal requires a 5-7 year gestation pe-riod from discovery to commercial operation, creating a long payback period. By compari-son, a wind or solar farm can be up and run-ning from scratch in 12-18 months.

Figure 1: Pros and cons of geothermal power.

30 january/february 2013 poWer insider

japan renewable overview



under a full turnkey contract from PT Geo Dipa Energi, the plant owner and operator, and Toshiba will supply the plant’s essential equipment: the steam turbine and generator and key auxiliary and management equipment.

In 2011, Toshiba also won an order to supply four sets of 70MW steam turbines and generators to a geothermal project in Kenya. Kenya Electricity Generating Co. also awarded a contract to build the Olkaria I and IV plants to a group comprising Japan’s Toyota Tsusho Corp. and South Korea’s Hyundai Engineering Co. Toyota Tsusho said that the contract is valued at 30 billion yen. They are hoping to get the first units online by February 2014.

providing stability: HydropowerHydroelectric power has been one of the few self-sufficient energy resources in resource-poor Japan for more than 100 years. Hydroelectric power is an excellent source in terms of stable supply and generation cost over the long term. Environmentally friendly hydroelectric power is well suited to Japan’s unique topographical characteristics and climate, which provides abundant rainfall. Though it used to compare unfavorably with thermal power, hydroelectric power saw a renaissance following the oil crisis in the 1970’s.

Most of the regional utilities have hydropower plants. Kansai have over 150 large, medium and small hydro plants. TEPCO owns 160 hydroelectric power stations and its total capacity is 8,520MW, and it accounts for approximately 7% of TEPCO›s electricity output. J-POWER currently possesses a total hydro-generating capacity of 8,565MW in 59 locations around Japan. Hitachi, Toshiba, Fuji and Mitsubishi are the main turbine providers in Japan.

Although the steady development of hydroelectric power plants is desired, Japan has used nearly all potential sites for constructing large-scale hydroelectric facilities. The focus for the future of Japanese hydropower seems to be on the refurbishing of old plants, developing small hydro, and investing in pumped storage.

As the gap in demand between daytime and nighttime continues to widen, electric power companies are developing pumped-storage power generation plants to meet peak demand. The share of pumped-storage generation facilities of the total hydroelectric power capacity in Japan is growing year by year, accounting for about 8% of all power plants currently planned or under construction in Japan, with three pumped storage plants currently being constructed.

Kannagawa The Kannagawa Hydropower Plant is located near Minamiaiki in Nagano Prefecture and Ueno in Gunma Prefecture. The power plant utilizes the Minamiaiki River along with an upper and lower reservoir created by two dams, the upper Minamiaiki Dam and the lower Ueno Dam.

The power station in between the two dams will contain six 470MW pump-generators for a total installed capacity of 2,820MW. Unit 1 commenced commercial operation in 2005, with Unit 2 coming online in 2012. When completed by 2032, the plant will have the largest pumped-storage power capacity in the world.

TEPCO own and operate the plant, and is the

company’s ninth pumped storage power plant. The company says Units 1 and 2 are the first in the world to use a “split runner,” which enables simultaneous operation of both the pump and turbine blade. Co-developed with Toshiba, the technology increases the output by 20MW per unit. The project is estimated to cost 484.5 billion yen, with a payback period of 50 years.

KyogokuThe 600MW Kyogoku pumped-storage project is under construction on the Bihinai and Pepenai rivers in Japan. Hokkaido Electric is constructing the Kyogoku Hydroelectric Station, which will be the first pure pumped-storage power station in Hokkaido. Toshiba Group is constructing the plant, which will feature the world’s largest power generation capacity for an adjustable speed pumped storage power plant.

Unit 1 is set to come online in October 2014, with units 2 and 3 scheduled to commence operations in 2015 and 2023 respectively. The estimated cost of the project is 135 billion yen, with a payback period of 34 years.

Kazunogawa No 3&4The Kazunogawa Power Plant is a 1600MW underground pumped storage plant constructed by TEPCO in Japan’s Yamnashi Prefecture. The first unit was commissioned in 1999, with the remaining three beginning operations in 2000.

Each of machines No. 1 through No. 4 have an output of 400MW, giving the plant a maximum of 1.6GW, and the turbines were provided by Hitachi and Mitsubishi Heavy Industries. There is further development planned at the site, with another 800MW scheduled to be built at the site by 2019.

There is a general consensus in the hydropower industry in Japan. Large hydro projects had their heyday with rapid development after the 1973 oil

crisis. Now, however, with the potential for large projects drying up, the industry is focusing on providing local power supply using micro-hydro and refurbishing old facilities. Nevertheless, big money is still being spent on pumped storage power plants, which allow plants to adjust power output. This is a key advantage in a country still scarred from the electricity shortages following the 2011 earthquake.

Japan came late to investment strategy of feed-in tariffs. A number of other countries worldwide had already begun to stimulate development in renewable power using this method far earlier. The simple reason is most likely that Japan felt they had the issue of clean energy nailed with their comprehensive nuclear power program.

It is for this reason that it is not easy to overstate the impact that the earthquake of 2011 and the resulting Fukushima disaster had on the energy market in Japan. Without it, the nation would not have lost their faith in nuclear, the Japanese government may not have felt inclined to invigorate the renewable market and the huge number of clean projects now either in operation or being constructed.

Of the four renewable sources surveyed in this overview, solar has benefitted the most, and has the most capacity coming online over the next few years. Biomass and hydropower already have a stable market, and look least likely to make great leaps forward. Geothermal is Japan’s greatest asset in terms of power potential, but steady development is controversial and rapid development is impossible.

Later in this issue, Power Insider Magazine Asia will take a close look at the one sector not covered in this overview: wind, the resource which appears to be sweeping Japan off its feet!


Designed and constructed by Contract Power Group


With the phenomenal costs that are increasingly apparent for the complex engineering

feat that is an offshore wind farm, consideration of every aspect in project development has to be meticulous, and executed to such a high level of skill, so that operators can be confident in their assets performance and subsequent lifecycle on handover. One area in particular is receiving growing attention for the wind industry; subsea cabling. As part of this editions special focus on the wind sector we caught up with Gerald Tan, who heads up business development for SBSS, a leader in the field of subsea cable laying and installation for the Asian region, to understand what is going on for the industry.

pi: Welcome Gerald to the current issue of Pi Magazine Asia, thanks for your time today. Can you tell us a bit about SBSS and Global Marine’s

operations for the Asia Pacific region?SBSS is a joint venture company between Global Marine Systems and China Telecom established in 1995. We have been a successful joint venture based in China with 3 specialized cable installation vessels presently operating in the Asia region.

In recent years, we have grown from our core Telecoms market and have leveraged our expertise into the Oil & Gas and Power Utilities markets. Today, SBSS is the leading subsea cable installation company in China and the region. Over the last 3 years, SBSS had invested heavily in newer vessel assets and subsea equipment to expand our capabilities into the power and renewable sector. Global Marine Systems is one of the world’s largest operators of cable maintenance and installation vessels and have been in this industry for over a hundred years now. As part of the Group we had been fortunate to be able to build up our experience, technology and reputation from here.

pi: Offshore wind is still very much a developing industry for Asia, with the likes of Japan, China and South Korea all undertaking ambitious large scale projects. What are the major challenges with these developments from a cable laying perspective?I believe the key challenges are having the right marine assets and experienced people to undertake such scale of work. As construction of these projects start, it will become imperative that the industry is supported with the specialized vessels and the right

UNDERTAKING A FINE ART IN SUBSEA

CABLE LAYINGskill sets to deliver these projects according to plan and budget.

We see massive offshore wind development plans going on in China, South Korea, Taiwan, Japan but the industry does not necessarily have the localized expertise and resources to undertake these large scale offshore developments, which could put the industry at risk to substandard practices and delays.

SBSS as a specialized subsea cable installation company, try to advocate as much as possible to advise developers on the engineering challenges and the due diligence that is required to undertake this kind of work.

pi: A significant amount of an offshore wind farms capital outlay is exhausted on export, array and interconnection cables and their installation. Do you think that end users are properly taking into account the potential implications of high risk seabed environments?There is a tendency for end users and EPC contractors to focus on seabed conditions for the turbine foundations but quality cable route survey and detailed geotechnical data is absolutely critical for the cable installation as well. This obviously has a direct impact on the route we select, the way we lay the cable and the protection methods we select to ensure the long term safety of cable. Very often, the importance of seabed survey along the cable route is underestimated resulting in unforeseen delay in shallow water operations and incorrectly specified

SBSS DP2 Vessel approaching close to platform in preparation of cable pull in from J-tube to platform

Gerald Tan, Head of Business Development, SBSS

SBSS IntervIew

PI_JanFeb_SBSS_Interview_Rev.indd 32 07/03/2013 07:41



burial methods. I believe more can be done to involve the cable installers at the front end design and survey stage to improve the overall execution of cable lay.

pi: In addition, large HVDC & HVAC subsea cables are presenting increased challenges in conjunction with the distances proposed for their deployment, what technological advances are required in vessels to ensure an effective and disciplined burial?There are actually 2 key aspects here. The higher loading capacity of vessels to undertake the lay of larger HV power cables over a longer distance and subsea burial technology to provide safe burial of HV products. SBSS is presently looking at both aspects. We are looking at vessels with higher load capacity to undertake these projects, for example, both our Bold Maverick and Fu Hai cable ships could hold over 5000tonnes of cables. We are also developing our subsea technology in terms having specialized and more powerful ROV based trenching systems to handle the burial of larger HV cables. Our latest Sealion3 ROV is one such system designed for 200mm diameter cables with 600hp water jet system for precision post lay burial. It is likely that our next generation vessels are going to have an even higher load capacity and our trenching systems even more powerful to meet the future demand.

pi: Significant experience in offshore cable laying has been amassed from the established telecoms & oil and gas industry, what are the key lessons that have been learned and can be utilized and applied for offshore wind?Lots can be learnt from the O&G industry in terms of due diligence and QHSE practices and we are also lucky to have developed our cable lay experience over many years of experience from telecoms.

Experience has taught us about respecting the

weather, realizing that we have a limited operation window and it is critical to have a good level of risk assessment and pre planning for this kind of projects. No project is standard and when we involve connecting multiple segments of power cables between offshore platforms (Inter array cables) and installing heavy, large diameter products (Export cables) close to shore, there is very little margin for error. Hence the importance of having the right people and assets for the job.

pi: There are so many critical variables to consider surrounding the operation of subsea cable installation, why is this precise engineering feat often overlooked in the scheme of an offshore installation?There is an inherent tendency for most owners and project stake holders to put much more capital and front end engineering emphasis into the turbines and foundation construction than the cable installation. Statistics in Europe have estimated that the cable and installation only represent up to 10% of the total cost of the project but it is also the cause of 80% of the delays for most of the projects. This is partly due to the under estimation of risk and resources required to undertake this “small” portion of work.

The mistakes normally start once the bottle necks to specialized vessel resources and experience people require to manage these jobs have been overlooked or compromised. Cable to platform interfaces, lack of quality route survey and under engineered cable burial methods are also common suspects.

pi: Could you provide some pointers to project developers and owners in achieving better results for cable lay for offshore windfarms?The key thing is early planning and factor in the cable laying resources in advance. The cable installer can be brought in earlier into the Front End Engineering & Design (FEED) stage to identify potential problems that may be encountered during the installation phase. For example, we may be able to input on certain ways to ensure adequate working space and pull in methodologies to save time for each J tube pull ins on each platform or help on route engineering or selecting a shore end approach with the right cable protection methodologies to minimize the overall risk of the project. This could not only avoid unforeseen project expenditures and delays at a later stage but also factor in the safety and longevity of the cable into the design phase.

pi: What about maintenance of subsea cables for offshore windfarms. What can be done to ensure the longer term operation and maintenance to subsea power cables for offshore windfarms in Asia? The maintenance of subsea power cable infrastructure is still a new and evolving area in Asia, partly due to a smaller infrastructure here but this will be an important area once offshore wind and subsea power network develops.

SBSS has been providing full time cable maintenance services to the telecoms industry since its incorporation and we are well placed to support the regional subsea power network when the industry requires this. For one, we realize the importance of having a dedicated maintenance vessel and cable depot to do this properly. The cable maintenance depot should be adequately equipped with spare cables and jointing parts. Repair procedures and jointing standards have to be in place and the vessel must have the right jointing systems with experienced jointing professionals onboard to undertake such repairs at sea.

System downtime can be very costly to the end users and adequate contingencies needs to be in place. We shall be monitoring this space and will be able to support this as offshore wind expands in Asia.

SBSS DP2 Bold Maverick Vessel in

Power Cable Lay Mode

SealionIII 600hp ROV fitted with precision water jet swords and specialized cable detection systems.

Protective cladding installed before cable payout to provide protection of cables over rocky seabeds.

SBSS IntervIew


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Wind energy has taken the world by storm in the past few years. It’s not only abundantly

available, but it blows at night when solar panels are idle and can be almost as cheap to produce as coal or oil � red power. � e wind power market in Japan has experienced periodic highs and lows in the last ten years and despite recent growth, wind energy still only accounts for less than 1% of Japan’s electricity.

� is is surprising for a country trying to replace nuclear power and stay green, especially when Japan’s

wind resources are immense. Taking geography and existing land use into account, the Environment Ministry estimates that Japan has the potential to develop up to 300,000 MW of onshore and 1.6 GW of o� shore wind power. Even low-end estimates put potential wind power capacity at 131,000 MW.

Wind capacity in Japan is currently approximately 2,600 MW, with 92 MW of wind power coming online in the last � scal year. Currently, all commercial turbines are on land, with most farms located in

Hokkaido and the northern Tohoku region which, along with Okinawa and Kyushu, have Japan’s strongest winds. � e largest wind farm to date has a capacity of 60 MW. Experimental o� shore turbines have a total capacity of 11 MW.

Japan is aiming to boost their wind energy generation, with the Japan Wind Energy Association seeking to increase Japan’s low capacity twentyfold by 2020. � e industry group has set a wind power installation target of 50,000 MW by March 2051,

JAPAN AND OFFSHORE WINDJAPAN AND OFFSHORE WINDBY RACHAEL GARDNER STEPHENS

JAPANESE WIND OVERVIEW

MEET THEINNOVATORS:

PI_NovDec_Japan_Wind.indd 36 08/03/2013 11:35


including 17,500 MW and 7,500 MW in � oating and � xed o� shore wind respectively.

� e Japan Wind Energy Association also predicts that Japan’s production of wind turbines and parts and maintenance services will grow from an estimated 300 billion yen a year currently to 500 billion yen in 2030. Japanese turbine technology ranges from micro; Japanese researchers recently developed a paper model that mimics the aerodynamics of dragon� y wings and produces enough electricity to power an LED light; to small home windmills that can power an o� -the-grid lifestyle and giant grid connected turbines for o� shore wind.

Despite such promise, wind power is not without its disadvantages. In addition to the usual wind farm objections, such as noise and the impact on the landscape, Japan has a number of unique issues that make the development of wind especially complex. � e � rst of which is Japans grid infrastructure. � e greatest electricity demand is concentrated in the center of Japan, while most potential wind power sites are located in remote areas where grid capacity is relatively small.

At present, windy areas in Hokkaido and northern Tohoku lack the transmission capability to reach high-demand areas such as Tokyo. In using more renewable energy such as wind, Japan will need to spend 5.2 trillion yen on building and upgrading transmission and distribution grids, according to government estimates.

� e second major issue for Japanese wind

development is severe weather conditions. Typhoons, strong currents, lightning strikes, strong gusts, high turbulence and big waves pose problems in Japan for o� shore and coastal wind farms, with a number of turbines severely damaged in 2004 and in 2007. � erefore, a safety standard designed for Japanese meteorological and geographical conditions is being developed to provide technical measures against typhoons and lightning strikes and to help future wind turbine development.

� e third problem is the stringent environmental regulations. Wind farms are on a list of power plants such as nuclear and thermal that is subjected to environmental impact assessments to address concerns on noise and birds. Such surveys can take as many as four years and cost developers an additional 100 million yen for a plant with about 10 turbines.

� e last problem that Japan faces is simply the potential locations: land-based wind energy development is limited by Japan’s mountainous terrain and lack of abundant free land, which in turn pushes land prices sky-high. � is makes o� shore developments the more viable option, and also provides the greatest capacity potential. Additionally, the depths of Japan’s surrounding oceans creates a bigger potential for � oating turbine technology, still in its infancy compared with the more conventional method of deploying � xed versions of the machines.

GOVERNMENT PLANS AND POLICIES� e Japanese government has a history of supporting



wind development. A huge percentage of the approximately 2.5 GW of wind energy that came online by the end of 2011 was down to generous government subsidies that were canceled in 2009. Since then, the market has stagnated slightly, with new installations dwindling. However, since the introduction of the feed-in tariff, which at 42 yen per kWh is the most generous in the world, business is booming again.

Japan’s feed-in tariff scheme requires regional utilities to buy any amount of electricity from wind and other renewable plants at preset, economically feasible rates in the first three years of applications to lure investors. METI has also been steadily increasing funding for offshore wind research and development, mainly for fixed turbines, from 200 million yen in 2008 to 5.2 billion yen in 2012.

Six regionally dominant electricity utilities in central and western Japan also agreed to co-ordinate the use of their grid to boost wind power capacity by a total of 400 MW from about 1,230 MW over the next four to five years. Shikoku Electric Power Co. and Hokuriku Electric Power Co., both of which have a high potential for wind power, have started accepting applications from wind turbines operators.

Both utilities have limited power demand in their service areas and wind power is difficult for such a small grid network to keep under control. But by supplying surplus power to their peers covering large cities such as Osaka and Nagoya the two would be able to accept more power from wind turbines. Three utilities in eastern Japan announced a similar move in September, aiming to increase wind power capacity by 400 MW from around 1,130 MW currently by using the grid network of Tokyo Electric Power Co, Japan’s biggest utility in terms of electricity demand.

Because of the potential capacity of wind power and the support from the government, wind projects are now being developed in strategic parts of the country with exciting new developments not only in offshore wind, but in floating wind turbines too.

The Japanese wind MarkeTJapan’s wind farm market is led by companies such as Toyota Tsusho Corp., J-Power, Japan Wind Development, and Green Power Investment, which sold a 44% stake to Softbank last year. Japan now has four wind turbine manufactures; Mitsubishi Heavy Industry (MHI), Fuji Heavy Industry (recently sold to Hitachi), Japan Steel Works, and Komai Tekko. However, the Japanese wind farm market is dominated by foreign companies, particularly turbine manufacturers such as Vestas, GE and Enercon.

Mitsubishi Heavy IndustriesMHI has been engaged in the research and development of wind turbines since 1980 and since then they have developed the output of induction type and variable speed type machines from 250 kW to 2.4 MW. To date, MHI has manufactured and delivered more than 2,250 units all over the world.

In Japan, MHI has an installed capacity of 246 MW from 290 units across the country. Key projects include Nagashima Wind Hill, the third largest wind farm in Japan, which has 21 MHI 2.4 MW turbines and the Soya Misaki wind farm, which has fifty 1 MW turbines. MHI stopped selling their turbines in Japan and now concentrates on foreign markets, even though it retains a domestic market share of 19%.

MHI is also still investing in some of the numerous projects taking place in Japan, and is working with research organizations NEDA and BIS to develop their first 7 MW offshore turbine. The demonstration project will start tests in June 2013.

Eurus Energy GroupEurus Energy Group is a global wind energy developer, and has built a number of wind farms in America, Europe and Asia. An associated company of Toyota Tsusho Corp., the group also built Japan’s first ever wind farm, and have since received high acclaim both in Japan for its original and outstanding development and operation knowhow accumulated

over the years. They have twenty three operating wind facilities in Japan, ranging from 3 MW to nearly 60 MW. As Japan’s largest wind farm operator, Eurus hopes to increase its capacity from 537 MW to about 900 MW by 2016. J-PowerJ-Power is a domestic electric distribution company that generates power mostly utilizing hydroelectric and thermal power, as well as a number of international projects. J-Power is the second-ranked player in Japan, with domestic wind power output of roughly 350 MW. The company aims to ramp up output to 700 MW in 2020 — the equivalent of a midsize fossil-fuel burning plant — by adding more wind farms.

J-Power has nine wind farms across Japan, ranging from 5 MW at the Yokihi no Sato wind farm to 66 MW at the Nunobiki wind farm. J-Power is currently developing three wind power sites in the Aomori and Akita prefectures and in Hokkaido. The combined capacity is slated to be 68 MW, and the farms are set to come online in 2014.

Japan Wind DevelopmentJapan Wind Development Co., Ltd. is primarily involved in the renewable energy related business. Through 15 domestic companies and three overseas companies, Japan Wind Development is engaged in electric power sales business, including maintenance and management of domestic wind power station and the sale of auto demand controllers. The Company is also engaged in the cession of wind power station and development programs, the commissioned development business, among others. The company has a number of wind projects in Japan, with around eighteen wind farms under operation.

EcoPowerEcoPower, a subsidiary of Cosmo Oil, aims to develop 80-90 MW of wind power by 2014, speeding up plans originally slated for 2016. The eco-friendly

japanese wind overview



power generation company specializes in the building and maintaining of wind farms and turbines. The company has an installed capacity of 147 MW from thirty small – medium scale wind projects.

EcoPower is to replace smaller turbines at its wind parks with machines with a higher capacity in a bid to boost operation rates to over 25%. Some 40% of their 128 turbines are smaller units that can only generate between 400 kW and 750 kW. Thus, the average output of EcoPower’s wind turbines is almost 20% below the industry average. The company’s plan envisages the replacement of the smaller machines with larger 1.5 MW to 3 MW ones by 2015. Putting up 50 of the 2 MW class turbines will cost EcoPower about 30 billion yen.

ProjectsChoshiThe first commercial wind farm located offshore in Japan was due to start producing electricity in January

build the world’s largest commercial power plant using floating windmills. Marubeni Corp., Mitsubishi Heavy Industries Ltd. and Nippon Steel Corp. are among developers erecting a 16 MW pilot plant off the coast of Fukushima. The consortium aim to expand the project to 1,000 MW, which will make it bigger than any wind farm fixed to the seabed or on land.

Japan is surrounded by deep oceans, and this poses challenges to offshore wind turbines that are attached to the bottom of the sea. Floating turbines could solve that issue, though it is still an unproven technology. The largest floating project currently in operation is owned by Statoil. The 2.3 MW “Hywind” turbine off the coast of Norway cost the company $29 million a megawatt. The turbines are mounted on a floating structure that allows them to generate electricity in water depths where bottom-mounted towers cannot be erected easily.

Japan aims to develop the floating offshore wind turbines for commercialization by March 2017. The biggest challenge in erecting floating turbines offshore is ensuring the buoyancy mechanisms are stable, and getting fixed lines to the sea floor which can be extended to depths of 200 meters.

The wind farm will consist of 143 wind turbines located off Fukushima’s coast. Scheduled to be completed by 2020, it would generate 1 GW of energy. The wind farm would be the largest in the world as the current largest in the Greater Gabbard farm in the UK generates 504 MW from 140 turbines, and the soon-to-be-complete London Array’s 175 turbines would only generate 630 MW. Once finished and fully functional, the wind farm will supply electric power to the Fukushima grid that was initially being supplied by two nuclear plants.

Nagasaki

2013. The 2.4 MW facility is located off the coast of Choshi, east of Tokyo. It is a joint project by the New Energy and Industrial Technology Development Organization (NEDO) and Tokyo Electric. NEDO will pay 33% of the 3.33 billion yen project.

The farm will use one of Mitsubishi Heavy Industry’s 2.4 MW wind turbines, which has already been tested off the coast of Choshi on its performance in severe weather conditions, including typhoons, strong gusts and high turbulence.

NEDO are also potentially developing another demonstration project, this time with J-Power. The JV is aiming to build a 2 MW offshore wind farm off the coast of Kitakyushu, in southwestern Japan. The new facility could start producing energy as early as May next year.

FukushimaJapan is preparing to bolt turbines onto barges and

40 january/february 2013 Power insider

japanese wind overview


Japan’s first offshore floating wind farm began trial operations in August 2012 off the coast of the western prefecture of Nagasaki. The wind farm is being operated by a technical team from Japan’s Environment Ministry, which installed a 100 kW turbine equipped with 36 foot diameter rotor on a 200 foot tower about a half mile off the coast of Kabashima island, one of the Goto Islands. It produces enough electricity to power 40 homes.

The turbine is 35 meters tall above sea level. The cylindrical part of the structure is hollow, giving it buoyancy, while the lower half of the section below the sea surface is filled with 130 tons of concrete to hold it in place. Far below, the platform is fixed to the seabed floor with three mooring lines.

After several months of operations to collect performance and maintenance data, a larger 2 MW generator will replace the current turbine next summer in order to sell electricity to the grid. The project is being developed by Toda Corp. and Fuji Heavy Industries Ltd., in partnership with the Japanese government.

KawazuFrench conglomerate Alstom will power a 16.7 MW Japanese wind farm with its ten ECO 74 wind turbines, under a contract signed with Eurus Energy Holdings. The turbines each have the capacity to generate 1.67 MW of electricity and will be delivered to the wind farm, located in the Kamo District of Shizuoka Prefecture, by February 2015.

The contract includes the supply of wind turbine generators and supervisions for installation and commissioning of the units at Kawazu. Alstom has previously supplied ECO 74 wind turbines for Eurus Energy’s 10 MW Satomi wind farm in Japan. Alstom has adapted its turbine with seismic towers

to improve availability in view of Japan’s seismic activity. In spite of strong typhoons that attack the country 3-5 times a year, the ECO wind turbines have not been affected.

Alstom will also supply 18MW turbines to Japan›s Higashi Izu II Wind Farm, which is slated to be commissioned in 2015.

OgaSumitomo Corp, Japan’s second-largest investor in power generation outside utilities, will add wind farms and at least two biomass plants to take advantage of the above-market rates for electricity from renewable sources the government introduced in July.

Summit Energy Corp., a unit of Japanese trading company Sumitomo Corporation, will develop a 29 MW wind farm in northern Japan. Summit has taken a 95% stake in a special-purpose company to be set up for the project. The wind farm will use 12 turbines, made by Mitsubishi Heavy Industries. Construction of the plant, to be built in Oga, Akita prefecture, has already begun and operations are scheduled to start in December 2014.

The plant is expected to cost about 7 billion yen. Summit expects profits from wind power to triple in as many years. Sumitomo’s focus is in part a response to a rush into solar projects that’s pushing up land prices and salaries. While government data show that Japan can build wind farms at a cheaper price and with higher returns than solar, 99% of applications for the new tariffs are for electricity generated from sunlight.

KashimaSummit Energy is also planning a wind farm in Ibaraki north of Tokyo that will be an 18MW add-on at its 20 MW site in the town of Kashima. Summit will build six wind turbines for an estimated 4-5 billion yen, lifting its total generation capacity by 50% - enough for roughly 30,000 households.

After completing environmental assessment studies, the firm will brief local residents. It will seek to begin commercial operation around 2016, with output sold to Tokyo Electric Power Co. and others. The six turbines will be near an existing Summit Wind Power wind farm. Occupying a section of a major coastal industrial zone in Kashima, the site currently sports 10 turbines.

Also in Kashima, two companies have been chosen to construct an offshore wind farm at the port. Wind Power Energy Co. and Marubeni Corp. were chosen by the local government after designating a 680 hectare area in the waters around the port of Kashima for renewable energy utilization in June 2012.

The area designated for building wind power facilities is divided between Wind Power Energy, assigned the northern part, and Marubeni in the southern part. The plan is to install some 50 large wind turbines, each with an output of 5 MW. Assuming a total output of 250 MW and an annual capacity factor of 30%, the new wind farm will have the capacity to generate 657 million kWh per year, equivalent to the electricity consumption of 180,000 average households.

The next step for the project is for the two companies to conduct surveys on environmental impacts and navigation safety, as well as to formulate

an execution plan and sign an agreement on project implementation with the regional government. The project is slated to begin construction around 2015 and begin generating electricity in stages around 2017.

WindlensIn another innovative move, a team at a Japanese university has come up with a unique wind turbine design that is set to improve electricity generation efficiency, and cut down on noise pollution. The design may be a while away from large-scale commercial development, but the industry is buzzing with the news of this ‘breakthrough’.

The Windlens is a million miles away from the traditional tri-blade wind turbine design. Instead, it resembles a giant magnifying glass with a number of blades rotating inside a circular frame. The Windlens works like a magnifying glass too, but instead of intensifying light from the sun, it intensifies wind flow. By creating an area of low pressure behind the turbine, wind is essentially sucked through the turbine, increasing effective wind speed.

To take advantage of Japan’s coastal wind power potential, the team at Kyushu University, led by Professor Yuji Ohya, has also designed a hexagonal-shaped base for the turbines that would be low in cost, but still strong enough to endure marine conditions. In addition to overall structural improvement of the traditional turbines, the bases would also make it easier to link other turbines at sea together and enlarge platforms.

In terms of the designs commercial viability and status, several types of turbines have been designed with different power ratings and many are still undergoing testing. As of March 2012, two units of turbines with a capacity of 70 to 100 kW (blade diameter of 12.8) have been installed on campus at Kyushu University for field testing.

The more widely used, smaller units with a capacity of 3 to 5 kW (blade diameter of 2.5 meters) have been picked up by some industrial users and installed in many locations, including the Gansu Province of China for a desert irrigation project and several coastal areas in Fukuoka City, Japan. The floating Windlens systems have been tested in a water tank at an in-house laboratory at the University, and actual field test installations for the first marine turbines are almost ready.

Japan has plenty of scope to increase their wind energy generation capacity. The country lacking in natural resources has bags of wind power potential, and is only just beginning to understand how best to utilize it. The earthquake and Fukushima disaster enabled Japanese industry experts and the government to see how essential the development of that potential is, and government subsidies and the feed-in tariff has facilitated the dawn of an innovative new industry.

The Japanese offshore wind market is growing, but the companies developing projects aren’t just throwing up wind farms as quickly as possible to fill the gap left by nuclear power. Instead, billions is being invested into finding the most groundbreaking and technologically advanced ways to use wind power to efficiently produce large amounts of electricity. This makes the Japanese wind market one of the most exciting energy markets in the world.




PPG PROTECTIVE AND MARINE COATINGS

A PIONEER IN THE CHINESE WIND

POWER INDUSTRY AND AN INNOVATOR

FOR OFFSHORE WIND

PI_JanFeb_PPG.indd 42 08/03/2013 13:20


The Chinese wind energy industry has scaled up in the past decade to comprise the world’s

largest cumulative installed wind-generating capacity. During this time, PPG Industries has served as an active and trusted supply partner, introducing innovative coatings and other products for Chinese wind energy original equipment manufacturers (OEMs), developers and fabricators.

PPG’s protective and marine coatings business supplies robust anti-corrosion solutions with recommended paint systems, provides attentive and proactive aftersales and customer support services and delivers industry-leading technical service and support to advise fabricators during the critical paint application process in the � eld.

A rich legacy and a diversi� ed solutionPPG’s � rst wind-energy coatings project in China

was for Goldwind in Hebei province in 2005, when the company was still known as SigmaKalon. � e project re� ected the nascent state of the Chinese wind power industry with 33 towers whose turbines generated only 0.6 megawatts each.

Since that time, PPG has supplied coatings for more than 7,000 towers in Chinese and international wind power OEMs including Goldwind, Sinovel, Gamesa, Vestas, Huachuang, Huayi, Mingyang, United Electric, and Dongfang Electric.

Coatings systems supplied for towers, turbine equipment and nacelles have typically included SIGMAZINCTM zinc-rich primer, SIGMACOVERTM strong epoxy build coat and SIGMADURTM durable polyurethane � nish coats. � e strong track record PPG has been built by serving European OEMs and achieving global certi� cation for its paint systems has enabled it to work closely with OEMs in the Chinese market.

LOCAL FOOTPRINTPrior to 2010, PPG coatings were developed in its Amsterdam technical center with production support from its Kunshan laboratory. However, for the past two years, PPG has derived more than 50 percent of its China entity’s revenues from products developed and supplied by the company’s research and development department in Kunshan.

� is local footprint o� ers PPG a signi� cant competitive advantage, and the Kunshan facility is recognized as a high-technology enterprise at both the central government and Jiangsu province levels.

At the same time, PPG’s technical service and support team of independently-certi� ed � eld engineers works onsite to advise fabricator or applicator personnel on process control best practices to ensure proper paint application. � is commitment to service has been a key contributor to PPG’s excellent record for anti-corrosive performance of wind power assets coated with its products.

A TRUSTED SUPPLY PARTNERCustomer feedback has been equally important in the evolution of PPG’s product range and overall value proposition. PPG has listened closely to the needs of fabricators, OEMs, contractors and subcontractors, and it has enhanced its product and service provisions accordingly.

In 2008, PPG formed a global wind power team to better focus on the speci� c needs of its customers in this segment. � e team works closely with the respective PPG businesses to share best practices and present a comprehensive solution to customers. Also, a local cross-functional team focused on wind power serves the market in China.

Among others, PPG has supplied paint for the

Goldwind turbine installations at wind farms in Gansu Anxi, Jiangsu Dafeng and Wengniutezu in Inner Mongolia the past four years.

PPG’s coatings systems will continue providing best-in-class anti-corrosion and anti-abrasion performance throughout the towers’ service lives in order to preserve their structural integrity.

THE BIG OFFSHORE WIND BREAKTHROUGHPPG anticipated developmental challenges in the Chinese onshore wind power industry and diversi� ed its value proposition to OEMs and developers by developing a robust set of o� shore wind power paint systems as well.

� is preparation paid dividends in 2010 with the award of the Longyuan Jiangsu Rudong project, the � rst large o� shore wind farm in China. � e wind farm is located between 3 and 8 kilometres o� the coast of Qidong and has a generating capacity of 150 megawatts. Work began in June 2011 and was completed in July 2012, with a total investment of RMB 2.5 billion ($ 400million). While seven di� erent turbine manufacturers were involved in the project, PPG was awarded as the sole supplier of protective coatings.

PPG worked with the Chinese OEMs to supply a 320 micron (µm) thick exterior coatings system, including a 60 µm SIGMAZINCTM 109HS primer, a 200 µm SIGMACOVERTM 410 mid coat, and a 60 µm SIGMADURTM 188 � nish coat, all compliant with ISO 12944-2 C5-M and NORSOK M501 System 1 standards.

For the interior paint system, PPG supplied a 240 µm solution comprising a 50 µm SIGMAZINCTM 109 HS primer, a 140 µm SIGMACOVERTM 410



mid coat, and a 50 µm SIGMADURTM 188 finish coat, all compliant with ISO 12944-2 C4.

The crucial differentiator is the intertidal zone coating system, comprising a 400 µm SIGMASHIELDTM 880 first coat and 400 µm SIGMASHIELDTM 880 second coat, compliant with ISO 12944-2 Im-2 and NORSOK M501 System 7 standards.

SIGMASHIELDTM coatings set a new standard for corrosion protection in the world’s most demanding environments. They were developed to exceed the performance expectations of asset owners in both new construction and maintenance environments due to their high film thickness in a single coat without sagging or cracking, damp and dry surface adhesion, quick time to immersion, robust anti-abrasion properties, and chemical splash and spill resistance.

Shop fabricators favour SIGMASHIELDTM 880 coatings due to their fast drying time, excellent sag resistance, flexible overcoat interval and good blister resistance with cathodic protection.

SIGMASHIELDTM 880 coatings’ ability to continue curing underwater means coated structures can be rapidly immersed in water to improve productivity.

Because the coating possesses excellent abrasion resistance without reinforcement and can be applied thickly in a single coat of up to 1,000 µm, the coating not only saves on labour costs and time but it also provides superior crack and sag resistance with two layer systems of up to 1,800 µm thick.

For asset owners wishing to have enhanced surface tolerance and reinforcement capabilities, PPG has developed SIGMASHIELDTM 880 Glass Flake (GF) epoxy to extend its product range.

Track record of innovaTionIn addition to developing and launching SIGMASHIELDTM 880, PPG’s Kunshan R&D centre has originated two products for the Chinese wind power industry since 2011.

SIGMAFASTTM 278 protective primer strikes a balance between wettability and quick drying for use on steel surfaces. It can be applied to the exterior and interior of wind towers, exterior turbine generator

and gearbox and other steel surfaces, and it has a high-solids, low-volatile organic compound (VOC) formulation.

SIGMADURTM 568 acrylic polyurethane topcoat meets strict VOC regulations and can help simplify the coating process for wind towers and other steel structures and equipment. It forms a heavy-duty protection system along with epoxy coatings, or it can be applied directly to treat steel surfaces in a low-corrosion environment without requiring an anti-rust primer.

a “one-sTop shop” for wind oeMsIn addition to supplying paint for wind towers and turbine equipment, PPG also supplies blade coatings and fiber glass products to fabricators for turbine blade manufacturing. PPG has introduced the below products to the Chinese market in recent years.

PPG is a pioneer in both the engineering and manufacturing of fiber glass, which it has done for more than 60 years. The company has been a leading contributor to the global wind market for more than 25 years, during which HYBON fiber glass products have established their performance value in wind blade composite applications. HYBON fiber glass

rovings offer blade producers the ability to engineer higher-performing products using a variety of resins, including epoxy, polyester and vinyl ester.

HYBON 2026 fiber glass is a high-performance roving that offers wind turbine blade producers the high mechanical performance required for critical structural designs and provides advantages in blade processing. With excellent adhesion in multiple resin systems, high tensile strength and fatigue performance that satisfies demanding wind blade applications, HYBON 2026 fiber glass provides multi-axial fabricators with the quality and features they need for the wind industry.

AUE-50000 wind turbine blade polyurethane topcoat is highly erosion and weather resistant. When used with HSP-7401 wind turbine blade polyurethane primer, AUE-50000 topcoat can help reduce coating thickness for enhanced turbine energy output.

The logical parTner for overseas growThAs Chinese OEMs venture overseas to expand their business footprint, PPG is uniquely positioned to be the export sales paint partner of choice in foreign markets.

PPG’s specification position with its SIGMA COATINGS® brand for Wind OEMs is broad and reaches across Asia, Europe and Latin America and supports future growth and can contribute to the continued expansion of wind energy in many parts of the world.

PPG also offers AMERCOAT® coatings in the United States, which has been specified and used by leading Wind OEMs for many years, providing excellent corrosion protection, gloss and color retention to wind turbines in very different climatic conditions.

posiTioned To sTay aT The forefronT of wind powerThe China-based PPG team is committed to helping strengthen the company’s global leadership in the wind industry and supporting the demands of the market. PPG continues to create innovative products that address industry needs, enabling the market to grow both in China and around the world.

As the world’s leading supplier of coatings and specialty products, PPG leverages its interdisciplinary expertise and the experience of its global manufacturing and service centres to provide customised products for the wind power industry and help customers build optimal power-generation solutions.

For more information, please visit http://windpower.ppgpmc.com / and www.ppgwind.com

The PPG logo and Innofiber are registered trademarks and “Bringing innovation to the surface.” is a trademarkof PPG Industries Ohio, Inc. SIGMASHIELD is a trademark of PPG Coatings Nederland B.V.

THE FAR SHORES OF INVENTION

Conquering one of the most hostile natural habitatsknown to man.

Offshore wind farms are the future of the growing wind energy sector. Ten times fartherout than current wind farms, subject to stressful high-wind and corrosive deep-waterconditions, they present extreme challenges for protective coatings and structuralmaterials. PPG is up to the task. Our new INNOFIBER® XM fiber glass composition,with higher tensile modulus, enables the production of longer wind turbine blades thatcapture more energy. Our SIGMASHIELD™ 880 coating offers enhanced abrasionresistance and extended asset protection, saving time and labor. SIGMASHIELD 1200is a premium solvent-free, epoxy phenolic coating so tough, it was originally designedfor ice-going and ice-breaking vessels. And, next-generation AUE series bladecoatings combine proven durability and UV-resistance with application efficiency.Visit ppgpmc.com to learn how PPG innovation helps our renewable energy partnerspush the boundaries of performance and cost savings.

PPG Protective and Marine coatinGs


The PPG logo and Innofiber are registered trademarks and “Bringing innovation to the surface.” is a trademarkof PPG Industries Ohio, Inc. SIGMASHIELD is a trademark of PPG Coatings Nederland B.V.

THE FAR SHORES OF INVENTION

Conquering one of the most hostile natural habitatsknown to man.

Offshore wind farms are the future of the growing wind energy sector. Ten times fartherout than current wind farms, subject to stressful high-wind and corrosive deep-waterconditions, they present extreme challenges for protective coatings and structuralmaterials. PPG is up to the task. Our new INNOFIBER® XM fiber glass composition,with higher tensile modulus, enables the production of longer wind turbine blades thatcapture more energy. Our SIGMASHIELD™ 880 coating offers enhanced abrasionresistance and extended asset protection, saving time and labor. SIGMASHIELD 1200is a premium solvent-free, epoxy phenolic coating so tough, it was originally designedfor ice-going and ice-breaking vessels. And, next-generation AUE series bladecoatings combine proven durability and UV-resistance with application efficiency.Visit ppgpmc.com to learn how PPG innovation helps our renewable energy partnerspush the boundaries of performance and cost savings.



The wind industry continues to grow at pace in Asia, despite the recent slump that has been

felt by many manufacturers in the last year. Onshore farms are well established and now o� shore projects are seeing great impetus from all quarters. In this issue we have seen the investment the Japanese are putting into this exciting sector, in a way not dissimilar to other major state owned utilities in the region, but one critical area continues to be a major talking point for all concerned with wind farm development, operation and manufacturing, and that is the gearbox.

Advances are being made in everyway possible to ensure that the technical di� culties and failures of the past are learnt from, and new products are developed in such a way that end users can be con� dent in selecting a gearbox over a more expensive capital outlay for a direct drive solution.

Mr. Stefan Tenbrock is the CEO of leading German gear manufacturer Winergy, whereas Mr. Mikael Laine is the CEO of innovative Finish gearbox supplier Moventas. Both companies have a signi� cant share on the global wind market with extensive operations in the Asian region.

� ese two major manufacturers are at the forefront of pioneering advanced solutions, to understand the new products they are developing we spent time with the two Chief Executive O� cers looking at how they are overcoming the modern challenges concerned with the wind industry.

PIMA: Gentlemen, welcome to the special PIMA focus for drive systems on the Asian wind market. Can you provide us with an overview of your technology? ST: With more than 70.000 wind gearbox supplies worldwide and over 30 years of experience, Winergy has a complete range of drive systems for wind turbines. For example, every third Wind turbine is equipped with a Winergy component.

Winergy is supplying gearboxes, HybridDrives, couplings and service on the highest technology standard. Our classical gearboxes have the proven

technology of planetary stages and/or planetary/helical stages. Over last years we have launched several innovations, e.g. the � rst o� shore gearbox in 1991, the � rst 5MW gearbox in 2003 and the 14MW test bench in 2007. ML: Moventas is well known for reliable power-transmission solutions in the wind power industry. Our wind turbine gear units are in use all over the world, wherever wind is farmed. We support the wind energy market growth by providing reliable gear technology and related services for wind turbines. We are signi� cantly increasing our production capacity to meet the demand.

Figure 1: Stefan Tenbrock, CEO of

Winergy AG

Figure 2: Mikael Laine, CEO of Moventas

Gear Oy

GEARBOX FOCUS

DRIVING THE WIND INDUSTRY

PI_NovDec_Driving_Wind_Industry.indd 46 07/03/2013 07:48




PIMA: Stefan, you have briefly mentioned the HybridDrive, can you tell us a bit about the benefits this technology can bring to operators?sT: The HybridDrive combines a two stage planetary gearbox with a generator in one system. The main benefits are low weight, very compact, very simple serviceability and an especially high efficiency over all wind classes. The Winergy HybridDrive reduces the cost of energy for an operator and increases their interest yield.

The efficiency of the system and the influence on the tower heat mass are superior, just to name two advantages.

PIMA: Mikael you have recently developed an exciting product in the Fusion Drive technology, can you explain?ML: Fusion Drive represents next generation power transmission technologies. Sophisticated construction is based on two design principles. Firstly minimising the total life time cost (CAPEX and OPEX) of the turbine, and secondly boosting annual production of the turbine.

Annual energy production is dependent on drive train availability and efficiency. As Fusion Drive design is based on reliable medium speed technology all high speed components having higher risk for a failure are removed from the design leading to the highest availability. Modern Permanent magnet generator also enables the highest efficiency curves, which makes the design a winning combination to boost annual energy production.

Compact size enables manageable transport and assembly. Short drive train length simplifies the turbine’s structural design and gives the lowest overall nacelle weight.

Figure 3: Moventas FusionDrive Technology

PIMA: We all know the potential that Asia offers for the wind industry, what outlook do you see for the region?sT: China and India are the two important markets in Asia. Winergy has production plants in both countries, to ensure that we are present for our local customers. We are focusing on long-term

relationships with customers to create trustful partnerships. We believe that this is the basis for positive future business.

Figure 4: Winergy’s Tianjin Manufacturing Centre

ML: Moventas Gears have a manufacturing facility in Suzhou, China, that supports our industrial gear business in Southm East Asia. Suzhou is also used as a service hub for our wind gear business in China. Massive investments for manufacturing wind power equipment in China have led to a surge in supply capacity, so the service market is also very important to be present in.

With long coastlines and power consumers located close by the sea, South Korea is also beginning to look offshore as an option to increase the use of renewables. We expect that there will be a national wind target in South Korea, however we also note that South Korean companies have chosen to invest outside Korea to expand to global offshore market, so this will be an interesting market.

PIMA: The global wind market is undoubtedly going through a difficult period, how are you combating these challenges?sT: Certainly the global wind market is decreasing against previous year, this is regrettable but this was not unforeseeable. Winergy is prepared for

Image courtesy of Mobil

gearbox focus



the situation and we are sure that a sustainable growth of the wind industry will be settled. In 2012 Dongfang become our tenth local client in China, as we signed a cooperation to supply gearboxes and technical support from our Tianjin facility. This was an important milestone in the localization of engineering and project management. The transfer of knowledge, processes and technology is a key strategy of Winergy to support the engineering teams locally, which are now in the right place at the right time.

PIMA: The conversion of direct drive from coil-driven to permanent magnet systems has led to cost and weight reduction in direct drive systems, but there are still significant amounts of rare earth metals used. What advantages do your gearboxes continue to bring despite the obvious mechanical intricacies and complexities in operation and maintenance?ML: The industry agrees that in order to increase the reliability of any system, the complexity of the system must be reduced. In drivetrains this will lead to the integration of separate independent equipment, to the integrated systems having shared functions. On a mechanical drive train level this means a smaller number of components transmitting the load. In gears we will see design concepts which are based on different kind of load sharing techniques and the use of the flexible structures.sT: Indeed there is a reduction in weight with a permanent generator, but compared to a gearbox system, the weight is still very high. Added to this the price level is uncertain due to the volatility of rare earth material, which gives a high risk into the supply chain. The initial investment for a Direct Drive system is far higher than for a classic gearbox drive train. Due to our knowledge a Direct Drive system is profitable assuming that the failure rate for a gearbox is very high, which is not the case.

PIMA: Common practise is to point the finger at a gearbox following a wind turbine failure, but we understand that this is not always the case?sT: The gearbox is not the system with the highest complexity and therefore the highest failure rate; according to recording over the years, the electrical system, esp. the converter, produces the most downtime of a wind turbine. When you have in mind that a converter for a Direct Drive system is far more complex than it is for a classic gearbox system, than you can imagine what could happen in the future after significant service hours.

The installed offshore turbines world wide are more than 90% equipped with a gearbox and more than 80% of all current turbine installations (On- and Offshore) are using a gearbox as well. This give a very good overview that the main turbine manufactures are very confident with a gearbox in their wind turbines.ML: In the past gearboxes have been in many cases the one to blame for proper reason. Having said that, it is also important to recognize that gearbox failures tend to occur with far less frequency than many other faults in a turbine. Also many of the failures have been consequential damages meaning that the root cause has been external.

Today turbine OEMs have a much deeper understanding of loads (aerodynamic and grid

induced), in addition to increased knowledge from leading gearbox suppliers of the drivetrain dynamic behaviour on a completely different level.

PIMA : Do you feel there is a future in offshore wind for traditional gearboxes?sT: Absolutely. As mentioned above more than 90% of all offshore wind turbines are equipped with a gearbox. And currently the biggest offshore wind parks like London Array and Typhoon are and will be equipped with gearboxes.

Additionally the Direct Drive system has to attest that the system is prepared for offshore conditions. Due to our knowledge there is no significant track record for Direct Drive system on offshore wind turbines. For example Winergy supplied the first offshore wind gearbox in 1991 and until today more than 900 gearboxes are offshore in service. Our experiences with offshore conditions are very substantial.ML: In onshore most of the turbines sold for coming

years are still based on these simple and proven high speed drivetrain concepts. However, in offshore larger power ratings as well as the need to build lighter and in the same time extremely reliable drivetrains will ultimately lead to the adoption of next generation drivetrain technologies. Minimum nacelle weight and volume is achieved with medium speed drives.

When compared to the direct driven low speed machines, the inherent advantage of next generation geared systems is total cost. Firstly, the specific cost structure of a direct driven multi megawatt class generator is unfavourable in the terms of material cost. When compared to the price of the steel, the used materials are expensive, not only neodium needed in PM machines, but also copper. Secondly, one needs these materials in increased amounts to make a direct driven machine than in a medium speed machine. Finally, with Fusion Drive the lighter nacelle weight keeps the assembly, transportation and erection costs at a minimum.

Image courtesy of Mobil



wind turbine lubrication

PI_JanFeb_Mobil_Interview (original).indd 50 07/03/2013 07:55


LUBRICATION AND FILTRATION TIPS

WIND TURBINES

Whether onshore or o� shore, keeping complex wind turbines

operating at peak performance can be extremely challenging.

For wind turbine operators, choosing the right lubricants is a key way to help prolong turbine performance and durability.

Recently, we caught up with Naveen Shukla, AP Field Engineering Manager of Mobil Industrial Lubricants, to better understand the lubrication and � ltration

needs of wind turbines.

PI: Why is lubrication such an essential component of wind turbine performance?Naveen: Wind turbine maintenance presents many challenges that can impact productivity. � e main gearbox drives the generator and is the heart of a wind turbine. With their advanced designs and overall importance to system performance, gearboxes can be very costly and time consuming to repair or replace after the warranty expires.

For example, when factoring in all expenses, replacing a gearbox for a 1.4 MW turbine can cost a company more than $625,000, including the price of a new gearbox; labor costs; crane rental; and lost

revenue from turbine downtime. In remote locations like o� shore, costs might

be even higher and after the warranty period, the operator becomes responsible for keeping the turbine running for the remainder of its service life.

For the main gearbox, as for all pieces of industrial equipment, lubrication plays a vital role in optimizing performance and minimizing downtime.

PI: What are the key challenges facing wind turbine operators and maintenance personnel?Naveen: Maintaining and prolonging the performance of the main gearbox is the greatest lubrication challenge in a wind turbine. � e most common cause of gearbox downtime is related to bearing failure. Considering the variable load, speed and dramatic temperature conditions wind turbines operate under, bearings are put under a signi� cant amount of stress. � ese factors, combined with improper lubrication, can result in the need for bearing replacements, and if damaged bearings are not replaced promptly, signi� cant harm to the gear may result.

� e drive to minimize up-tower weight has resulted in compact gearbox designs which in combination with high loads found in wind turbines, makes these surface hardened gears susceptible to








micro-pitting, which can cause numerous surface cracks. � e cracks propagate at a shallow incline to the surface, forming extremely small pits that may reduce gear tooth accuracy and lead to signi� cant gear damage.

In addition to protecting against micro-pitting and other forms of equipment wear, Mobilgear SHC XMP 320 exceeds the performance of traditional oils by extending the interval between oil changes from 18 months to � ve years or more. Extended oil life translates into a variety of bene� ts, including reduced volume of oil purchases, used-oil disposal volumes, maintenance e� ort and lubricant-related downtime for oil changes.

PI: Why does using synthetic lubricants vs. conventional oils make such a difference in wind turbine applications?Naveen: � e need for manufacturers to minimize up-tower weight in wind turbines has resulted in compact gearbox designs that incorporate the case hardening of the gear surfaces. Case-hardened gears exposed to unpredictable winds and loads found in wind turbines are susceptible to micro-pitting, and require a gear lubricant that protects against this type of wear.

� e extreme conditions wind turbines are subjected to are easily endured by high-performance synthetic lubricants mainly due to improved � lm strength at operating temperature. By comparison, conventional, mineral-based � uids cannot deliver

the same level of protection. Upgrading to synthetic lubricants brings a number of advantages, including nearly 50% greater � lm-strength at operating temperature, which can help maximize the performance of wind turbines.

Compared to conventional mineral oils, synthetic � uids can often help deliver signi� cant advantages including - longer equipment life, high-temperature capability, excellent resistance to oxidation and protection against wear.

� ese kind of performance advantages can help companies generate signi� cant bottom line savings and, equally important, enable them to maximize their productivity.

PI: What are the best practices for wind turbine oil fi ltration? Naveen: � ere are several types of oil � lters.

� e � rst step in identifying the appropriate � lter for a turbine is to determine what level of oil

cleanliness is required for proper function. � ere are a variety of factors to consider when

making this decision, including the machine’s OEM cleanliness standards, � lter micron size, beta rating and the kinds of containments being removed, be they dirt, water or wear metals.

Manufacturers must also consider oil � ow, and determine the � ow-rate of the pump moving the oil. Filter capacity has to either match or exceed the pump � ow rate, to prevent � lter malfunction or back-pressure buildup.

It’s important that wind turbines be equipped with two oil � ltration systems.

� e primary system � lters oil prior to delivering it to the gears and bearings.

� e auxiliary system is designed to augment the primary system, focusing onmaintaining the required system cleanliness. A duplex housing should be employed as it allows for � lter changes during normal operation.

Finally, proactive � lter maintenance is critically important.

Maintenance personnel should take routine samples to determine overall cleanliness of the oil and e� ectiveness of the � lter. � e � lter should also have a tattletale—usually a pressure gauge mounted in the housing—that indicates when the � lter needs to be changed.

PI: What are the most common mistakes made with respect to oil fi ltration? Naveen: A common problem is over-� ltration.

While a � ltration system is designed to remove contaminants, removingexcessively � ne particles may negatively impact oil additive balance. It is crucial to pay close attention to the OEM recommendation for oil system cleanliness,as exceeding that speci� cation provides limited equipment bene� t and may actually hinder the performance of the lubricant.

Also, manufacturers often have a tendency toincorrectly base their � lter purchaseson price.

It’s important to remember that there are a variety of prices for the same “quality” � lter. Price is impacted by several di� erent factors—micron size, e� ciency, surface area, material type, capacity—and the bottom line is that not all � lters are alike.

WIND TURBINE LUBRICATION









Maschinenfabrik Reinhausen GmbH (MR), based in Regensburg, Germany, and its 26

subsidiaries enjoy success in the global niche markets of energy technology. Over 50 % of the power consumed around the world is regulated by MR products, making the company the world market leader in this sector.

Its core business is power transformer regulation in power grids. � is is done with the aid of tap changers and o� -circuit tap-changers, which adapt the transmission ratio of the primary to secondary winding to changing load ratios and, together with additional, innovative products and services, ensure an interruption-free power supply. Other business areas of importance to the company include the construction of test � elds for grid components, the production of composite hollow insulators and systems for avoiding system perturbation by generators and consumers.

As well as developing and producing tap changers and accessories for transformers, asset management provides a collection of services and solutions. � ese are tailored to the speci� c customer requirements of the energy transmission and distribution, industrial production and energy generation sectors.

Huge and outdated substations, various transformer brands and sizes, diverse tap-changer types, many transformer accessories and operational concepts, load behavior and ambient in� uences are – among others – the result of the enormous increase in energy demand over the last 30 years. In order to maintain operation reliability and to integrate obsolete systems into modern substation concepts, development of asset management and maintenance strategies is of vital importance.

assures the proper function and will also provide a � ngerprint (measurement values) for any further testing and diagnostics.

MAINTENANCE PHILOSOPHIES� e overall asset management strategy is based on di� erent service philosophies which consider the importance and reliability of the respective components. Transformer operators usually select and de� ne a combination of the following philosophies.

Risk-based / event-based maintenanceAny inspection, repair or maintenance work will be carried out only after a failure occurs. Within this philosophy, failure indicates the need for further steps. No predictive maintenance plan is available – this is de� nitely considered the wrong strategy.

Time-based maintenance / predictive maintenance� e maintenance steps are carried out within � xed intervals, time frames and criteria indicated by the original manufacturers and the respective operating manuals of the equipment. � is philosophy o� ers

ASSET MANAGEMENT SOLUTIONS MADE BY

Given the installed base and technical data of transformers, a concept to calculate the importance and condition of the speci� c asset is necessary. Plant maintenance management which takes account of the importance and condition of the transformer is an e� cient tool. Key factors in line with operator standards have to be de� ned to review the condition and importance of the particular transformer. Based on diagnostic measures and arithmetic systems, criteria with various weighting systems can be de� ned. � e criteria illustrate a ranking of transformers which forms a basis for maintenance, availability, cost management and budget planning.

Countless transformer and OLTC test systems are available in the market. Reliability and accuracy of test systems are certainly the main criteria of such systems. Measurement values are essential for diagnosis but interpretation of these values and the resulting recommendation for asset management is the most di� cult and most important part of transformer diagnostic programs. It is essential to proceed on the basis of the diagnostics results, interpreting the respective actions in the right way. One appropriate strategy is to detect any irregularities before they cause failures in the operational system. Life cycle management starts with installation and commissioning of the transformer. Commissioning

SOLUTIONS

TRANSFORMER ASSET MANAGEMENT

PI_JanFeb_MR_Rev4.indd 54 07/03/2013 07:56


easy planning (shutdown times, spare parts) and improves the condition of the equipment.

Condition-based maintenanceAny services and maintenance work is carried out based on the defined conditions and fixed parameters of the equipment. The right component is maintained at the right time. Attention has to be paid to planning shutdown time and spare part availability. Sensors, test procedures and monitoring systems are needed to establish the condition.

Preventive maintenanceFinally, and considering all aspects and philosophies, any asset management plan or maintenance strategy should be preventive and assure the reliability and proper function of the overall equipment.

NO maintenance – means the use of maintenance-free productsIf maintenance-free products are used for new projects or if they are installed as retrofit projects, then the maintenance-free strategy could be followed. The use of such maintenance-free products (e.g. MR VACUTAP®

OLTC, MESSKO® Dehydrating Breather …) forms part of modern asset management strategies.

Modern Asset Management Strategies include:• Reliability-centered maintenance • Condition assessment• Strategy featuring a combination of time- and

condition-based maintenance• Determination of the appropriate level of

maintenance needed• Determination of the necessary task when

performing maintenance• Training maintenance teams• Replacement of components with longer

maintenance intervals• End-of-life determination for assets• Technically- and economically-optimized

solutions for assets

Asset MAnAgeMent solutions froM MrBased on decades of experience, MR provides eight spheres of activity for asset management which are perfectly matched to the different customer

requirements of the energy transfer and distribution, industrial production and energy generation sectors. This package of solutions for tap changers and accessories is available worldwide through sales and service branches.

diAgnosisPreventive measures and customized diagnosis concepts provide a rapid status assessment and deliver maximum operating safety and reliability. Modern measurement methods extend the usual diagnosis procedure and enable a more accurate status assessment of different components on transformers.

ConsultAnCy & engineeringMR provides decades of experience and expertise in project planning and implementing complete solutions – including and most importantly in complex applications. Technical support during the product lifecycle is just as important as tailored service concepts.

One good example is the seminar held in Singapore on the subject of high-voltage technology that was organized by Reinhausen Asia-Pacific



Sdn. Bhd (RAP), based in Kuala Lumpur, and Aspectus Engineering Service Pte Ltd, Reinhausen’s representative in Singapore.

Here more than 150 experts from the energy sector had the opportunity to familiarize themselves with the very latest technology via the MR products on display and during specialist presentations. Contact: [email protected]

MAINTENANCE & REPAIRS� e global service network of highly trained and certi� ed service technicians guarantees rapid and professional support when required – and is available 24/7.

� e same applies at Reinhausen Indonesia (RID). In order to act as quickly as possible and to provide a maintenance and consultancy service, MR established a sales and service subsidiary in Jakarta in 2010. PT. Reinhausen Indonesia (RID) is in close contact with various industrial companies throughout Indonesia and most especially with the local utility PT PLN (Persero). RID provides tailored services and trainings dictated by customer demand.

Contact: [email protected]

MONITORINGMonitoring important system components is vital to status-oriented plant management. Automatic error detection and trend analysis are some of the main bene� ts. For the Indonesian market of secondary

technology (control and regulation technology) in particular, the experts at MR have successfully developed a series of tailored TAPCON® AVR functionalities, combining voltage regulation, online monitoring and a control system in accordance with SCADA IEC 61850 in the TAPCON® 260 AVR++. � is has been fully certi� ed and approved for all 500 kV and 150 kV applications in the PT PLN grid.


RETROFIT & MODERNIZATIONMR o� ers numerous tried and tested transformer retro� t and modernization solutions – to extend service life and ensure maximum availability. One partner for complete project handling guarantees professional implementation.

Modernization and life extension become more and more important. Reinhausen Australia (RA) assisted in the retro� t of 12 x MR VACUTAP OLTC VV for a major New Zealand Utility. � e use of VACUTAP® in this application assures the customer of a lifetime of safe, reliable and maintenance free operation.

Contact: [email protected]� e move from oil to vacuum technology has

also been completed with success in China. An old oil tap changer, still in operation in a transformer belonging to Sichuan Mianyang, was replaced with a new VACUTAP® VM® with a TAPMOTION® ED motor-drive unit to the customer’s complete satisfaction. � anks to the professional work of the MR China Ltd. specialists, the replacement was completed smoothly and very quickly.

Contact: [email protected] quality requirements become ever more

stringent while the pressure is on to reduce the lifecycle costs of transformers and equipment, one of the largest energy suppliers in Japan has opted to use the maintenance-free MTraB® dehydrating breather. � is resulted in a signi� cant cost saving. � e energy provider will work with MR Japan Corporation (MRJ) to increase use of the MTraB®.

1100_A4_08022013-ZW.indd 1 08.02.13 08:22

TRANSFORMER ASSET MANAGEMENT


1100_A4_08022013-ZW.indd 1 08.02.13 08:22PI_JanFeb_MR_Rev4.indd 57 07/03/2013 07:57



installation & CommissioningWhen retrofitting transformer components, quick and easy commissioning is of primary importance. The components are therefore perfectly configured and pre-fitted by MR. Once assembled, perfect functionality is ensured and the customer is provided with the relevant documentation.

A conventional OLTC was replaced with modern vacuum technology OLTC VACUTAP® VM® at Daehan Steel, Korea. Advantages of the vacuum technology for the customer include e.g. no service

requirements before 300,000 switching operations drastically reduced operating costs for the entire physical life, increased availability of the transformer, no oil carbonization and no oil filter systems.Contact: [email protected], [email protected]

spare parts and aCCessoriesMR is the only manufacturer of tap changers to ensure the global availability of spare parts for the entire service life. In other words, components can still be ordered or repairs still carried out in the MR workshop even 50 years later.

MR always considers the latest technical developments and innovations during the production of spare parts. This means that MR routine OLTC maintenance is service and updating in one step.

trainingMR provides customized training programs. Both in fully equipped training centers on all continents and at the customer’s own premises.

For example, a four-day operator training course was run exclusively for the State Grid Corporation of China (SGCC) in the training center belonging to MR China Ltd. (MRT). The function of on-load tap-changers and how to maintain and repair them was demonstrated to the participants.

ConClusionProfessional maintenance and modernization of transformers is a significant element in their lifecycle. Various reasons can be established during a transformer assessment. Modifications based on the latest technical status bring the transformers up to the very latest technical level so that they can be easily integrated in all modern substation networks. Such modified and upgraded transformers work as reliably and efficiently as new systems. Operation and maintenance departments should work with experienced service partners in order to evaluate a clear and tailor-made asset management strategy.

Your personal contact for the Asset Management Solutions division at MR / Headquarters in Germany: [email protected].

Transformer asseT managemenT


CAT, CATERPILLAR, their respective logos, ACERT, “Caterpillar Yellow,” the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. © 2012 Caterpillar. All Rights Reserved.

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CYBERWARFAREBRINGING THE FIGHT TO THE ENERGY INDUSTRY


Cyber security has received a staggering amount of press over the last year. � e impact of virus’s

such as Stuxnet, Wiper and Shamoon have been subject to scrutiny by global news organizations and political administrations. � e impact of cyber attacks has been noted by industry experts and world leaders alike, with their potential to wreak havoc bought home by revelations about American, Israeli and Chinese o� cial and uno� cial cyber-war strategies. In this digital age, there are few industries or organizations that aren’t vulnerable to the threat of cyber attacks. At best these attacks disrupt businesses, interrupts services and cost money. At worst, this virus can wipe and steal sensitive data, which can then be used for blackmail, extortion, sabotage and espionage. As the world has seen with Stuxnet, virus’s can now even cause physical damage to equipment.

It is not di� cult to see how this a� ects the energy industry. A cyber criminal could disrupt an entire city by targeting a power grid, which would disrupt not only people’s lights and toasters but also hospital equipment like heart monitors, tra� c control lights, and defense systems. Disruption to power stations could also lead to catastrophe; note the danger posed by the Fukushima meltdown when the nuclear plant was cut o� from its power sources.

� e simple fact is that terrorists no longer need bombs to attack enemy populations; they need a USB drive, some malicious code, and an unwitting employee. � is seems terrifyingly simple, but the reality of the situation has been noted by a number of cyber experts. For example, AMD, Honeywell, Intel, Lockheed Martin, and RSA/EMC are forming a private non-pro� t consortium known as the Cyber Security Research Alliance, hoping to develop “break-through technologies” to improve cybersecurity.

� e energy industry will need such technologies, as it is becoming increasingly vulnerable. According to a MacAfee report on cyber security, the power industry’s vulnerability is born out of “well-intentioned e� orts” to modernize energy distribution and make it safer, cleaner, more e� cient, less costly, and open to more alternative forms of production. � is has resulted in high levels of automation and a proliferation of increasingly interconnected software and devices directing the � ow of energy.

Another common problem highlighted in the report is outdated systems. An estimated 70% of the existing energy grid is more than 30 years old, but in the e� ort to update it and integrate it with more modern installations, aging systems have been connected to the Internet without the bene� t

of encryption.Its not just power grids that are in danger, but

power plants, re� neries and downstream industries too. Most are familiar with the way in which Stuxnet sent the nuclear centrifuges spinning out of control in an Iranian enrichment plant, and how Wiper ripped data from a Middle Eastern oil re� nery. A number of other Middle Eastern oil companies have been targeted this year, with many successful attacks:

Saudi Aramco, the national oil provider in Saudi Arabia, had thousand of computers obliterated in August 2012 with the invasion of a virus called Shamoon. Exceptionally adept at infecting entire computer networks, the malware disarmed the networks security and simultaneously stole and deleted � les. Shamoon does not leave a Master Boot Record behind, meaning that the computer cannot be rebooted. Up to 30,000 computers were rendered useless at Aramco, wiping away email, documents, spreadsheets and other � les, replacing them with an image of a burning U.S. � ag.

� e virus was also reported to have hit RasGas, one of the worlds largest LNG producers in Qatar, just two weeks later, though it may have been a copycat.

In May 2012, the National Iranian Oil Company was attacked by the W32.Flame virus. It disrupted connections between the Oil Ministry in Tehran, production centers and facilities across the country, including the big export terminal on Kharg Island. � e “Mini-Flame” virus, dubbed “a high-precision, surgical attack tool” by Kaspersky Lab, is thought to be the second part of a wave of cyber attacks. Firstly, the Flame or Wiper virus infected as many computers as possible, stole information, and indenti� ed the most interesting targets. Mini-Flame was then employed to conduct in-depth surveillance and cyber espionage.

Despite such successful and high pro� le attacks on crucial energy sectors, the approach to cyber security is still inconsistent and reactive. A few companies have invested rigorously in cyber security solutions, such as the Westinghouse Electric Company. � ey have teamed up with McAfee to protect its worldwide network of nuclear power plants, ensuring strong attack detection and prevention capabilities. However, this deal is the exception that proves the rule.

Power Insider Magazine Asia wanted to get an expert’s opinion on how prepared the energy industry is for attacks such as the one’s faced by the Middle East last year. We asked three cyber security experts for their views, and for their suggestions on what energy companies could do to prevent attacks.

Paul Nicholas (PN) is the Senior Director of Global Security Strategy and Diplomacy at Microsoft Trustworthy Computing. Costin Raiu (CR) is the Director of Global Research & Analysis Team at Kaspersky Lab. Our � nal contributor is Aviv Ra� (AR), the Chief Technology O� cer at Seculert.

PIMA: What are the potential outcomes of a cyber attack on an energy company or utility?PN: Cybersecurity issues in the energy sector are similar to those in other sectors. � ere are attempts to gain access to sensitive data about exploration, investment plans, as well as to gain insights into operations, or in some instances disrupt operations. However, the di� erence in the energy sector is that disruption on the delivery side can have broader immediate impact due to society’s reliance on power. As shown in a recent case study on MidAmerican Energy Holdings Company, an attack on one part of the organization (the web site) could have had broader reaihing e� ects.CR: � e attacks against SCADA systems have become popular only during the recent years. Perhaps the most well known example is the Stuxnet worm, which wreaked havoc on Iran’s nuclear program. � is demonstrated that computer programs can attack SCADA infrastructures, and that we are pretty much walking into uncharted territory.

Most companies responsible for the control of critical infrastructures have deployed at least basic levels of protection, however, they are limited by the type of systems they are trying to protect. Unfortunately, many of the actual computers responsible for the control are old and can be extremely di� cult (if not impossible) to secure. A good example would be computers running Windows 95 – nowadays, it is almost impossible to have such as system in a network and secure it.AR: � e potential outcome is full control of the network and machines within the energy company. � is full control is the worse possible scenario, but these attacks can be incredibly advanced and persistent, gaining access to entire systems.

PIMA: Security technologist and author Bruce Schneier recently claimed that cyber security is an “over-blown non-threat”. Can the danger of cyber attack be overstated?PN: Microsoft takes any attack impacting customers very seriously. Cyber attacks have become increasingly sophisticated, and at times, targeted. Attackers have a wide range of reasons as to why they look to cause malicious harm such as compromise systems, take down networks, gain

CYBER SECURITY ROUNDTABLE

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COSTIN RAIU: Director, Global Research and Analysis Team, Kaspersky LabCostin joined Kaspersky Lab in 2000. Prior to becoming Director of the Global

Research & Analysis Team in 2010, Costin was Head of the Romanian R&D group, overseeing research e� orts in the EEMEA region. Costin specializes in malicious websites, bro wser security and exploits, e-banking malware, enterprise-level security and Web 2.0 threats. Costin also has a particular interest in encryption and advanced mathematics. Costin has extensive experience in antivirus technologies and security research. He is a member of the Virus Bulletin Technical Advisory Board and a reporter for the Wildlist Organization International.

PAUL NICHOLAS: Senior Director, Global Security Strategy and Diplomacy, Microsoft Trustworthy Computing Paul Nicholas leads

Microsoft’s Global Security Strategy and Diplomacy Team, which focuses on cybersecurity and critical infrastructure protection. Paul currently serves on the World Economic Forum’s Global Agenda Council on Internet Futures. He has helped establish and grow two international non-pro� t organizations including one designed to improve software security and the other for advancing incident response. Prior to joining Microsoft in 2005, Paul spent over eight years in the U.S. Government where served as a White House Director for Cybersecurity, a senior policy advisor in the U. S. Senate, and an Assistant Director at the Government Accountability O� ce.

AVIV RAFF: Chief Technology Offi cer, SeculertAs Chief Technology O� cer, Aviv is responsible for the fundamental research and design of Seculert’s core technology. Aviv

brings with him over 10 years of experience in leading software development and security research teams. Prior to Seculert, Aviv established and managed RSA’s FraudAction Research Lab, as well as working as a senior security researcher at Finjan’s Malicious Code Research Center. Before joining Finjan, Aviv led software development teams at Amdocs, an industry leader in billing systems. Aviv has published several pioneering security research articles, and is a frequent participant and requested speaker at worldwide information security conferences.


access to intellectual property or steal data. One need only look at news headlines and analyses such as the Microsoft Security Intelligence Report to see these incidents are real and that they merit our collaborative e� ort to help improve the state of cybersecurity worldwide. Recognizing this concern, the public and private sector have been working together to address cybersecurity issues and attacks targeted at critical infrastructure such as power services.CR: Nowadays, most energy and utility companies rely heavily on SCADA infrastructures. In turn, these rely on regular communication protocols (TCP/IP) to allow access to the whole operation, change parameters and recon� gure the system. In essence, pretty much everything is nowadays controlled by a computer and in many cases they are connected to the Internet for remote access.

Taking over such systems is unfortunately easier

than most might think. � ese systems have been designed a long time ago. Worst of all, they haven’t been designed with security in mind, so many of them cannot even be secured because they run on very old computer hardware or operating systems.

Having access to such SCADA infrastructures o� ers an attacker the possibility to switch o� electricity for a plant or an entire city. Or mess up tra� c lights or water distribution. At the moment, we can only suspect what could be the worst case scenarios – unfortunately, when it happens in real life, it’s often even worse than predicted.AR: Actually, yes it can be overstated; some of the attacks are not that advanced. However, that doesn’t matter. It’s increasingly simple for the attackers to use non-advanced attacks to perform malicious activities, threatening entire technology ecosystems.

CYBER SECURITY ROUNDTABLE



existing SCADA infrastructures coupled with the existing attack tools and methods can result into a risk level ‘X’. In time, if the structures remain the same (and generally they do remain the same for many, many years), new tools and new attack methods are discovered. Hence the risk ‘X’ keeps growing every year, at an exponential rate. Our existing critical infrastructures have not been designed with security in mind and that is the biggest problem.Ar: Those who are using traditional security products only, such as anti viruses, firewalls, IPS, etc., are not prepared. They need to look into solutions that have the ability to detect attacks over a long period of time, that is the only cost effective way is to use the cloud as a technology enabler. Due to the nature of these high-profile attacks, they are often capable of infiltrating through simple security products, as mentioned above.

PIMA: What can energy companies do to protect themselves, and what technology is available?pn: While cybersecurity is an industry challenge requiring collaboration and cooperation, there are a number of steps that companies can take to help protect critical infrastructure. Process transparency, service level agreements and well-established privacy and security policies are just a few ways to help achieve this. Microsoft takes the security and privacy of customer data very seriously, and we maintain best practices such as the Security Development Lifecycle and other tools to help our customers manage security risk effectively.

IT departments in energy companies are often aware of many of the threats facing their networks and infrastructures, and they are a great resource for sector-wide best practices. As cybersecurity evolves, so do the tactics for both opportunistic and targeted threats. This means:

Those managing IT systems must improve their organizations basic hygiene to help protect against opportunistic threats and make persistent and determined adversaries work harder. This includes migrating to newer software with enhanced mitigations and protection, patching vulnerabilities promptly for all software, configuring systems properly (in part through increased automation), educating

PIMA: Would you say that energy companies and utilities are prepared for cyber attacks on the whole?pn: It is hard to categorize any one segment of critical infrastructure from a readiness perspective when it comes to cyber-threats, due to the complex exploit methods used in the ecosystem. The energy sector frequently addresses disruptions from natural and manmade hazards, and this focus on risk management can help them also address cyber challenges. The sector is also reliant on other sectors to help deliver their goods and services, so it is important to factor in the readiness of the overall chain, making the process even more complex.Cr: In general, people tend to ignore dangers until they actually get burnt. That’s why many companies are reluctant to invest into security until they get breached, when it’s too late. We can say that the

users about the risks of social engineering, and taking other steps — whether they involve people, processes or technology — to manage risks more effectively.

Another part of the strategy involves fundamentally altering the security posture to address persistent and determined adversaries. The security strategy deployed for blunting opportunistic threats — a security strategy focused predominantly on prevention and secondarily on incident response — is no longer enough. In the event a system has been compromised, we must also be able to contain and recover from the incident. This means organizations will need to expand their strategy to be more holistic, including: prevention, detection, containment and recovery.Cr: There are many steps which can be implemented in order to increase the security of critical infrastructures, and they range from easy to hard. Easy steps would be:• Define a good, thorough security policy for the

whole organization• Deploy firewalls, separate critical networks from

public/Internet• Deploy advanced security software • Monitor traffic, keep detailed logs• Keep all software updated and patched• Use hard to guess passwords• Harder to implement steps include:• Upgrade all versions of Windows to Windows 7

x64 (64 bits)• Remove Internet Explorer and use a more secure

browser such as Chrome• Remove Java from all PCs• Get rid of old hardware that can’t be properly

secured• Implement a whitelisting policy – ban all

unknown programs• Deploy honeypots inside the organization to

track attacks• Educate the personnel about security threatsAr: As mentioned earlier, companies need to arm themselves with those standard products, I.e. Firewalls, anti-virus, etc., but today, cloud enabled solutions that detect attacks over a longer period of time protect companies to combat these attacks when they occur.


PIMA: What is holding back many companies from strengthening their cyber security?PN: Companies large and small are often making decisions about where and how to invest a finite amount of resources in order to meet customer needs and protect the company. Cybersecurity can be a challenging space and can sometimes be put into the “longer term” planning cycle when measured against other investments such as sales or customer priorities. The challenge for companies is in striking the right balance and enabling collaboration between subject matter experts in technology, operations and management, as well as with partners outside the company. It is critical for technology vendors, governments, businesses and consumers to work together to innovate, develop and deploy effective solutions that help protect against the changing threat landscape.CR: I’d say that the biggest two factors are:• Budget / financial factors• Mentality / “we don’t get hit”

It’s probably important to point that although the first one is more serious, it’s generally the second that holds companies from implementing a good security policy.AR: Many companies thought that by “checking the box”, and being “complaint” is enough to be protected, meaning companies that have those

standard protective technologies meet those security standards in place. In more recent attacks that past few years we see that more and more companies are adapting cloud-based advanced threat solutions.

PIMA: What is your company currently offering/doing to reduce the amount of and fight cyber attacks of this nature?PN: At Microsoft, we continuously work to improve how we build security into software and services, develop new methods for mitigating attacks, and have dedicated staff to respond quickly and effectively to threats and vulnerabilities 24/7.

Microsoft continues to make investments to increase the security of our technologies through the Microsoft Security Development Lifecycle (SDL), a security assurance process that addresses all phases of the software development process. The SDL is based on an innovative foundation of security science and research to understand how computer systems are attacked and compromised. The SDL, and the mitigations developed through security science research, are shared freely with developers across the software industry and customers’ development organizations where they have been used to develop more secure software.

Microsoft continues to work on providing products, services, guidance and tools to help organizations more effectively manage risk. Our

goal through these efforts is to drive change that will enhance the security and resiliency of critical infrastructures. We can achieve this goal by building trust, developing groundbreaking solutions, and building and maintaining trusted collaboration among governments, industry partners and critical infrastructure providers.CR: Kaspersky Lab is developing a secure operating system for protecting key information systems (ICS) used in industry/infrastructure. The system is based on the principles of security and does not allow the execution of unsafe code. We are going to provide the source code to certification authorities who will be able to analyze it and give their verdict.AR: We offer two solutions, Seculert Echo and Seculert Sense. Echo intercepts and collects data from live botnets, allowing you to identify malware attacks on your organization whether previously known or not. Seculert Sense detects malware attacks, including APTs, on your organization, analyzing the log files you upload to our cloud. Sense uses a wide range of Big Data analytic methodologies, and includes Seculert›s unique information collected from live botnets.

Despite representing three different companies from three different nations, the experts who spoke to Power Insider Magazine Asia present a united front. The industry consensus is that the cyber security threat is growing, and that the energy sector is vulnerable. The systems in place are aging and not designed with security in mind, and are therefore difficult to protect. With cyber attacks getting smarter, standard security measures are no longer enough to keep information and systems safe, but advanced systems are costly and time consuming to install and use. Most importantly, it is clear that the culture within the energy sector needs to change, switching attitudes towards cyber security from reactive to proactive.Aricle written by Rachael Gardner Stephens

For More InForMAtIon on Cyber SeCurIty And the energy InduStry, See:Microsoft Security Intelligence reportSmarter Protection For the Smart grid, by McAfeeMidAmerican energy holdings Company Case Studyhttp://eugene.kaspersky.com/2012/10/16/kl-developing-its-own-operating-system-we-confirm-the-rumors-and-end-the-speculation/

64 january/february 2013 PoweR iNsideR

cyber security roundtable


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PUB, Singapore’s National Water Agency, is responsible for the collection, production,

distribution and reclamation of water in Singapore.As a small, fledging island nation, Singapore is

not naturally endowed with an abundance of land or water. The nation’s early years were marked by a series of challenges like water shortages, flooding and pollution problems, all of which were typical of rapidly urbanizing cities.

Power Insider Magazine Asia sspoke to Harry Seah, The Chief Technology Officer of PUB, about those challenges, PUB’s successes, and about the utility’s plans to ensure long term sustainability in Singapore. PUB’s biggest success is the guarantee to access for all Singaporeans to clean, safe drinking water at a turn of the tap. Thanks to strong political commitment and visionary planning, PUB has overcome the very constraints that plagued Singapore in those early years.

To do that, PUB took a multi-pronged and integrated approach, managing the water cycle in a holistic manner, and ploughing investments into R&D and technology. The central principles at play were simple – PUB aim to collect and harvest every drop of rain possible, collect back every drop of used water, so that every drop as far as possible, can be recycled and reused.

Through political commitment, long term strategic planning and continuous investments in R&D, PUB has put in place a robust and diversified water supply strategy known as the Four National Taps - water from local catchments, imported water, NEWater and desalinated water that can meet the

Quenching Singapore’S

ThirST

needs of Singapore for generations to come.Local Catchment Water: With neither natural

aquifers nor lakes, and little land to collect rainwater, the utility’s strategy has been to collect and store as much of the 2400mm of rain that Singapore gets annually, even from unprotected, urbanized catchments. However, this could only be done with complete separation of the rainwater and sewerage infrastructure, good land use and environmental control. Today, two-thirds of Singapore’s land area is water catchment, and rainwater is collected in the 17 reservoirs. Singapore is probably the city with the most extensive urban rainwater harvesting in the world.

Imported Water: Under the 1962 Water Agreement, PUB has been importing water from Johor. This agreement will expire in 2061. Together, local catchment water and imported water can meet up to 60% of Singapore’s current water needs.

NEWater: The jewel of PUB’s water supply strategy is NEWater, the utility’s own brand of high-grade, reclaimed water. The introduction of NEWater in 2003 was a major milestone for PUB, as it allowed

them to reduce their dependence on nature. By allowing every drop of water to be used and re-used, it creates a multiplier effect, and is therefore a much more sustainable source of water than adding catchments to collect rainwater, a luxury in land-scarce Singapore. Today, NEWater can meet 30% of Singapore’s water needs.

Desalinated water: Since 2005, PUB have been tapping on

the surrounding seawater as a resource, with the SingSpring Desalination Plant, one of Asia’s largest seawater reverse-osmosis plant, which produces 30mgd of water to meet about 10% of Singapore’s water needs. Like its predecessor NEWater, desalinated water is the result of PUB’s continued investments in water technology and research.

A second plant, Tuaspring, a public-private partnership project between PUB and Hyflux, will commence operations later this year and will add another 70mgd of water to the city-state’s water supply. By 2060, Singapore intends to ramp up desalination capacity so that desalinated water will meet at least 30% of the total water demand in the long term.

Desalination, whilst providing an abundance of fresh water, is the most energy-intensive source of water amongst the Four National Taps. In order to ensure that this water source is affordable and sustainable, and coupled with rising energy costs, PUB are looking into extensive R&D to lower the energy consumption.

Current desalination energy consumption using Reverse Osmosis utilizes 3.5kWh/m3. With the aim

Harry Seah, PUB Chief Technology Officer

PUB SINGAPORE

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of at least halving the current energy consumption levels, PUB has partnered Siemens Water Technologies to experiment with electrically-driven processes to desalt seawater.

With funding support from the Environment and Water Industry Program Office (EWI), an inter-agency outfit spearheading the growth of the water industry, Danish aquaporin membrane company Aquaporin A/S has collaborated with the Singapore Membrane Technology Centre (SMTC) to develop a novel aquaporin enhanced biomimetic membrane for application in desalination and water reclamation.

Aquaporins are proteins embedded in cell membranes that nature uses to selectively shuttle water in and out of cells with minimal resistance while blocking out salts. The use of aquaporins enhances the performance of the membranes by allowing water to flow through more rapidly while still stopping the salts and pollutants.

In the longer term, PUB are also exploring bio-mimicry for desalination. The principle of such applications is adopted from plant and animal life which have been extracting sea water for their survival evolved over millions of years, using negligible

amounts of energy. If science can find a way of mimicking these biological processes, innovative engineering solutions can potentially be derived for seawater desalination. This would revolutionize the process and potentially lowercosts, which would strengthen the viability of desalinated water as an affordable water source.

Despite the good progress made, sustaining Singapore’s water supply remains an ongoing challenge, and PUB has many focuses for the future.PUB will continue to invest heavily in R&D and technology to ensure a sustainable water supply. NEWater, for instance, was the result of R&D since the 1970s.

PUB has also pioneered a new water treatment technology called the Variable Salinity Plant, to harness water from the remaining streams and rivulets near the shoreline. Integrating desalination and NEWater treatment processes to treat water of varying salinity into potable water, this technology has the potential to increase Singapore’s water catchment from two-thirds to 90% of Singapore’s land area.

Besides looking into countering the rising cost

of energy through research in low energy seawater desalination, PUB is also looking into projects that harness synergies between the energy, water and waste to enable a sustainable approach towards water treatment and management. Such projects allow PUB to extract the most out of their resources, so that not just water, but energy can also be generated. At the same time, waste products such as low grade waste heat, brine and sludge can be re-used/recycled to yield useful products:

Membrane distillation – Keppel and Memsys are two Singapore companies looking into this technology. Membrane distillation uses either solar power or low grade waste heat to raise the temperature of seawater in order to produce fresh water. This is an example of using waste (in the form of waste heat) to generate water.

Pressure-retarded osmosis – Instead of disposing desalination and NEWater brine back into the sea, the two waste brine streams could be used in a pressure-retarded osmosis system, where the salinity difference could be used to drive turbines to generate electricity. This technology is currently still being studied in the laboratory, and globally, has not yet



been successfully demonstrated on a large scale. Going forward, PUB will continue to invest

heavily in R&D to find more cost-efficient ways to treat and produce water. The challenge in the future is to develop new water technologies that utilize resources like energy and chemicals more efficiently and hopefully, do not generate waste, or biological methods that offer greater cost efficiency and minimal environmental impact.

PUB think it is vital to share these water solutions with the rest of the industry and other nations. Good water resource management programs will always be relevant and essential, and PUB aims to develop a strong domestic and global presence in the water industry. PUB’s experience has shown that while strong policies and robust infrastructure form the backbone of a stable water supply system, public involvement and continuous exploration of new technologies, information and expertise, are also instrumental towards meeting the rapidly growing challenges in water resources management faced by cities today.

PUB’s experience in tackling water challenges has helped to create a vibrant water industry in Singapore. PUB will build on this to create a hub for water technology, by sharing knowledge with others in urban water management and helping to develop new technologies to address new water challenges.

The Singapore Government has also identified water and environment technologies as a key growth sector, and Singapore is now well-placed to take the lead as an R&D base and as a wellspring of water solutions. Through the Environment and Water Program Office (EWI), which spearheads the growth of Singapore’s water industry, the National Research Foundation (NRF) has committed $470 million to promote R&D in the water sector. Through funding promising research projects, the EWI aims to foster leading-edge technologies and create a thriving and vibrant research community in Singapore.

Today, Singapore has a thriving cluster of 100 water companies and 25 research centers. These include not only Singapore-owned companies like Hyflux, Keppel and Sembcorp but also international names like Black and Veatch, CH2MHill, CDM,

General Electric, Siemens, Veolia , Suez, Toray, Nitto Denko, as well as start-ups like HydroVision Asia, Aquaporin Asia, Visenti, Fluigen and MINT.

PUB are actively working with the industry to come up with new, innovative ideas that may make a difference to the water world. PUB encourages water companies to tap on Singapore as a “living laboratory” to test-bed and commercialize cutting edge technology by opening their facilities for companies to test-bed their technologies under actual site conditions.

PUB’s key idea in growing the water industry is to develop and co-create the next generation of innovative water solutions. They are constantly looking out for solutions to meet current and future water challenges and like PUB, many countries are facing similar challenges, such as climate change, greater urbanization and rising energy costs. Beyond providing an environment for business and research, Singapore also plays a key role in forging dialogue amongst the policymakers, water experts and industry leaders on water issues, challenges and solutions.

To raise PUB’s profile as a global water hub, the utility has hosted the Singapore International Water Week for the last five years.Through the Singapore International Water Week (SIWW), PUB aim to create a platform for the global water community to come together and share their experiences on tackling water issues and finding sustainable water solutions.

The event brings in key decision makers from across the entire water value chain, and allows the global water industry to share and collaborate with one another on new market opportunities. Comprising the Water Leaders Summit, Water Convention, Water Expo and Business Forums, it

culminates in the presentation of the Lee Kuan Yew Water Prize, a prestigious international award to recognize outstanding contributions in solving global water issues.

To continue the discussions from SIWW 2012, PUB will be organizing an exclusive, high-level “SIWW Water Utilities Leaders Forum – Mapping Challenges & Solutions”, which will be held in Singapore in September 2013. This is the probably the only event of its kind – a Forum organized by utilities, for utilities, that focuses on their challenges and solutions in Asia Pacific & the Middle East. The Forum is the first of a series of small-scale events focused on utilities. It will focus mainly on utilities’ challenges and solutions in the Asia-Pacific & Middle East region. The next leg of the series will be held in Amsterdam, focusing on issues of interest to utilities from Americas, Africa and Europe.

PUB are expecting 100 top leaders from the water utilities sector to engage in in-depth discussions and exchange views with one another during the Forum. PUB will produce a post-event document which charts the strategies for water utilities to improve their operations, and share them with the participants. These discussions will continue at SIWW 2014 where we share the document and findings with a wider audience of policymakers, industry, academia and international organizations at the Water Leaders Summit.

The next SIWW will be held from 1-5 June 2014, in conjunction with the World Cities Summit and the CleanEnviro Summit Singapore. In line with global water industry trends, SIWW 2014 will see discussions on four themes: • “Cities-Water-Environment Nexus”,• “Municipal Water Solutions”,• “Industrial Water Solutions“ and,• “Future of Water”, which will look into forward-

looking solutions (new, revolutionary technology, thinking or ideas) to tackle future challenges such as climate change and competing resource needs. Nominations for the Lee Kuan Yew Water Prize

2014 have just opened, and PUB hope to attract good quality nominations from around the world in the area of groundbreaking water technology or innovative water policy and management.

PUB have taken Singapore on an incredible journey from water shortages, floods and pollution to fresh water for all. PUB has also succeeded in promoting a culture of excellence and learning in the water industry. The utility continues to explore new technologies for the development of treatment facilities, in order to not only produce fresh water, but to do so with the minimum amount of energy and waste. Not content with applying these technologies domestically, PUB aims to share these developments internationally, promoting a global discussion of how to maximize the world’s most precious resource.

‘PUB have taken SingaPore on an incrediBle joUrney from water ShortageS, floodS and PollUtion to freSh water for all. PUB haS alSo SUcceeded in Promoting a cUltUre of excellence and learning in the water indUStry.’

WATER INTAKE IS OUR CHALLENGE!––––––

WE DESIGN AND PROVIDE EFFICIENT SOLUTIONS FOR WATER INTAKE SYSTEMS.

• Bar screen systems for coarse and � ne water screening• Traveling band screens for � ne � ltration• Fish protection technology for nature preservation • Cathodic protection for installation in sea water• Isolating equipment• Worldwide after sales and installation service

Take advantage of customized water intake solutions and quali� ed support – in all � ve continents.

––––––

BILFINGER PASSAVANT WATER TECHNOLOGIES GMBH www.water.bilfinger.com Business Unit GEIGER, Hardeckstraße 3, 76185 Karlsruhe, Germany

Passavant-Geiger is nowBilfi nger Passavant

Water Technologies GmbH

BWT 13-036 anz_power-insider-2013_210x297_gb_rz.indd 1 11.02.13 11:37

PUB SINGAPORE


WATER INTAKE IS OUR CHALLENGE!––––––

WE DESIGN AND PROVIDE EFFICIENT SOLUTIONS FOR WATER INTAKE SYSTEMS.

• Bar screen systems for coarse and � ne water screening• Traveling band screens for � ne � ltration• Fish protection technology for nature preservation • Cathodic protection for installation in sea water• Isolating equipment• Worldwide after sales and installation service

Take advantage of customized water intake solutions and quali� ed support – in all � ve continents.

––––––

BILFINGER PASSAVANT WATER TECHNOLOGIES GMBH www.water.bilfinger.com Business Unit GEIGER, Hardeckstraße 3, 76185 Karlsruhe, Germany

Passavant-Geiger is nowBilfi nger Passavant

Water Technologies GmbH

BWT 13-036 anz_power-insider-2013_210x297_gb_rz.indd 1 11.02.13 11:37PI_JanFeb_2013_PUB.indd 69 07/03/2013 08:01


Properly designed Water Intakes are critical for seawater desalination plants, cooling water at

power stations and pumping stations. E� ective and reliable water screening systems are crucial to protect and preserve downstream equipment such as pumps, condensers, micro-� lters and RO-membranes.

Bil� nger Passavant Water Technologies has been designing and supplying components for Water Intake for more than 100 years and supplies worldwide a broad range of components including isolation equipment (Stop Logs & Sluice gates), coarse and � ne screening machines (bar racks, raking machines and traveling screens), corrosion protection (active and passive cathodic protection systems), and aquatic species protection systems.

With experience at hundreds of water intakes, Bil� nger Passavant Water Technologies’ development team is able to provide reliable and innovative solutions to � nal clients. An example of a recent successful innovation is the development of the MultiDisc® traveling screen. � e MultiDisc® has a through � ow screening pattern and is the natural upgraded replacement of traditional through � ow screens. First developed in the 1930s, traditional through � ow screens have been subject

to relatively few technical improvements since their � rst application. � ey are typically a� ected by high maintenance costs and su� er from an issue known as debris carry-over. Debris carry-over occurs when the screenings brought up by the traveling screen are not e� ectively washed o� and subsequently conveyed by the screen to the clean water side of the intake channel. By eliminating this pernicious e� ect the MultiDisc® guarantees optimal water screening performance and protects downstream equipment, while at the same time decreasing signi� cantly maintenance costs thanks to its longer maintenance intervals.

� e success and e� ectiveness of MultiDisc® is proven by over 150 installations worldwide in less than 10 years.

Following case studies describe successful installations of high quality equipment of Bil� nger Passavant Water Technologies.

1. DC COOK NUCLEAR STATIONFor many years prior to 2003, American Electric Power (AEP), one of the largest Electric Generating Companies in the USA, was experiencing repeated plant shut downs at their DC Cook Nuclear Plant. � ese shutdowns were caused by debris carryover

from their traditional thru � ow screens. During this time the only Carry-Over Free

replacement screen available was a “Dual Flow Conversion” (DFC) screen design. AEP hired Alden Laboratories of Holden, Massachusetts to evaluate potential impacts to their plant if they were to replace their screens with DFC screens. Alden developed a Computational Fluid Dynamic (CFD) model of the Cook cooling water intakes including, the fourteen intake channels, the three intake tunnels from Lake Michigan, and all pumps drawing water from the common intake. � e results of the CFD model indicated that the DFC Screens may create � ow disturbances at some of the plants Circulating Water Pumps. Alden subsequently built a complete physical scale model of the intakes. Testing on the physical model con� rmed that surface vortices formed during certain normal � ow conditions.

AEP then approached Passavant Geiger to see if PG o� ered any screen designs which could prevent debris carry over and not produce the turbulence common with Dual Flow Conversion screens. At that time our development team was working on prototypes of the MultiDisc® Screen.

Installing a � rst of a kind screen at any plant is challenging but at a nuclear plant these challenges

WATER INTAKE SYSTEMS

SCREENING, CATHODIC PROTECTION AND ENVIRONMENTAL ISSUES AT WATER INTAKE SYSTEMS

Fig. 1 & 2: MultiDisc® installation at DC Cook Nuclear power Plant.

PI_JanFeb_Bilfinger_Rev.indd 70 07/03/2013 08:02


are greatly magnified. The initial interest led to several months of detailed design review meetings where all aspects of the new design were discussed and analyzed. As an example a full size screen panel was constructed and tested in a test rig that simulated the full design load, to confirm that the panels would not fail.

As a result of the initial review, two new MultiDisc® prototypes were ordered and installed at the Cook plant. The prototypes were tested in continuous high-speed operation for a period of 3 months. The results of the prototype testing were a complete success and AEP ordered 14 MultiDisc® screens, to replace all the traditional thru flow screens.

During the years since installation many features of the MultiDisc® screens have proven to be significant advancements compered to the original through flow screens. In addition to the elimination of debris carryover these advancements include;

Single Chain vs Two Chains – a known disadvantage of any two chain screen design is that the two chains must be tensioned equally. Uneven chain tension has led to many screen failures. The MultiDisc® utilizes a single chain and therefore uneven chain tension failures are eliminated.

Ease of installation – the MultiDisc® fits into the existing through flow screen guide ways and therefore

requires no modifications to the civil structure.In a retrofit installation the MultiDisc® can

be mounted with individual spray wash pumps mounted to the MultiDisc® frame in the same “foot print” of a through flow screen.

The 14 screens at Cook together are screening approximately 2,000,000 gpm. Since installation of the MultiDisc® screens almost 9 years ago, there have been no plant shutdowns caused by debris carryover.

2. Magtaa ro desalination plantRO Desalination plants require highly specialized Water Intake Systems. Engineering companies often request very fine pre-treatment screening of raw sea water, in order to assure reliable long-term operation of downstream micro-filters and RO membranes. Water screening equipment in RO plants also requires a reliable Corrosion Protection System due to the typical high salinity of the intake water.

The Magtaa Desalination Plant in Algeria is the largest operating SWRO plant worldwide (500,000m3/day).

The water intake system is subdivided in four channels, being each channel streamed by 13,500 m³/h sea water and provided with two cleaning steps: one coarse screening by means of automatically raked bar screens (20mm bar spacing) and one fine screening by means of traditional center-flow travelling band screens with only 200µm(!) mesh opening.

Bilfinger Passavant Water Technologies awarded the supply contract of all screening equipment, including what are between the finest travelling band screens ever supplied.

The real challenge was to achieve a very precise manufacturing process with smaller tolerances than usual in order to avoid excessive clearance and by-passes at the sealing points between moving and standing components of the machine.

Another important task was to provide a reliable cathodic protection system, crucial to the long term reliability in sea water of equipment whose main components are made in stainless steel 316L. The choice was a system with impressed current, with longer lifetime and much better adaptability to changing potential conditions in water than the sacrificial anodes system.

All submerged metal parts of the screening equipment were electrically connected to the positive terminal of the direct current supply unit while a defined quantity of rod anodes was installed on the concrete structure of the intake channels to provide the protective current, constantly adjusted by means of a reference measurement electrode.

If properly designed, this system effectively protects all exposed metal surface inside sea water, even the very fine metal wire mesh, usually difficult to protect cathodically.

For electrically “hidden” surfaces, such as some components of the travelling band screen drive chain and chain guide, a special solution was employed: due to the very restricted space availability inside the chain guide, on its internal surface a very thin titanium stripe was applied, carrying a Ø2mm Niobium wire anode with a 5µm platinum coating.

This solution will allow optimal cathodic protection for at least 10-15 years and minimizes all operational risks due to corrosion problems.

Fig. 3 & 4: Magtaa RO Desalination Plant (Algeria).

Fig. 5: Fish-repelling electrode at a water intake

Fig. 6 computational design of electrical field



3. environmental aspects and fish protection In recent years new concerns about the protection of aquatic species in water intake systems have arisen alongside with general environmental worries. Several environmental regulatory agencies worldwide are requiring nowadays water intake systems to install provisions to protect fish and other aquatic life. This topic is therefore set to become a strategic investment issue for water intake system operators in power, desalination and industrial plants.

The most stringent regulation at present is discussed in the USA, where the Environmental Protection Agency (EPA) issued back in 1977 its original framework to address requirements of section 316b of the Clean Water Act. Decades of lobby pressure and legal challenges have prevented these standards from coming into effect until now, but eventually the final version is expected to become rule in 2013.

According to EPA estimation, the new regulation applies to at least 1.260 US industrial and power facilities where more than 2.1 billion aquatic creatures are killed annually by water screening equipment, both due to impingement or to thermal/physical stress in downstream water treatment processes.

Traditional water screening technologies treat trapped animals as normal debris to be collected and disposed of, therefore the need for new adequate fish protection solutions which have been developed in two main directions:• Preventing aquatic species from entering the

water intake structure• Avoid injuries to trapped living creatures and

safely return to the water body• Bilfinger Passavant Water Technologies,

combining long experience in water screening with new technologies, has developed state of the art solutions for protection of aquatic life that achieve remarkable survival rates while fully complying with the most stringent regulations such as EPA 316b and EU flora-fauna-habitat guidelines.

Examples of advanced fish protection solutions are:• Electrical fish-repelling system• Several submerged electrodes are positioned at

the inlet of a water intake structure and emit short polarity-changing pulse sequences of low voltage electric current into the water which cause muscle contractions in the fish. Fish and other locomotive aquatic creatures interpret these contractions as a danger and swim away from the electrical field.

• The optimization of the electrical field parameters (e.g. voltage, pulse duration, electrode position, etc.) is made by means of innovative graphic

software which takes into account specific plant conditions including cooling water conductivity, intake geometry, water flow profile and prevailing fish species.

automatic fish return systemMost fish species, eggs and larvae pass unharmed the coarse screening step of water intake systems and get stuck on fine screening equipment (mesh screens).

An innovative fish return system allows them to return safely to the water body.

Fine screens can be equipped with a low pressure spray-water cleaning system for recovering trapped fishes and buckets for their collection. Recovered fishes, eggs and larvae are then gently collected into a separate return trough which is flushed with enough water to bring them back smoothly and safely to the original water body.

electrical fish immobilization systemA fish immobilization system is usually adopted in combination with fish return provisions and is installed in the inlet chamber of fine screening equipment. Its aim is to prevent fish and other animals to exhaust themselves by trying to avoid being collected by fish recovery buckets.

The functioning principle is similar to that of a fish repelling system but electrical pulse intensity and frequency are fine-tuned through an ad-hoc software tool to achieve the immobilizing effect.

Protection of aquatic life is already an important aspect for water intake system design and is expected to gain importance in the future since several developing countries are on the way to introduce relevant regulation.

Bilfinger Passavant Water Technologies – Business Unit Geiger in Karlsruhe is a worldwide leader in intake water screening engineering and technologies for cooling, process and desalination purposes. Bilfinger Passavant Water Technologies collaborates with all major operators and constructors of power, chemical, industrial and drinking water plants worldwide.

Water Intake SyStemS

Fig. 7: Fish return system MultiDisc® Screen and Fig. 8 Computational study of most suitable fish bucket shape.


IronIng out a new revenue stream

power insider january/february 2013 7373 november/december 2012 power insider

WASTE TO ENERGY & THE STEEL INDUSTRY

Steel manufacturing isn’t known as the world’s greenest industry. It is said to account for at

least 5% of the world’s total carbon emissions. Traditional steel plants and storage facilities cast off vast particles of harmful dust to couple up with the emission of various harmful greenhouse gases from the production process.

In 2006, when Hyundai Steel Corporation began planning an ambitious, new integrated steel mill in Dangjin, South Korea, it set out to heavily reduce the new plant’s environmental impact.

In total Hyundai Steel is spending approximately $4.7 billion on the Dangjin mill, and when No. 3 blast furnace is completed in September 2013, the company will be capable of producing 24 million tons of crude steel annually. Reaching this level of output will ensure that Hyundai Steel are firmly established as one of the world’s top 10 steel producers for some

time to come.The mill is capable of producing high quality

reinforcing bars, hot rolled coils and steel plates, all key materials heavily utilized in a power plant construction. The need for short construction times and rising labour costs in new plants, make the use of rolled sections an attractive option, with some being delivered for use in the surrounding and internal plant structures, air heater house structures, main and secondary beams of working platforms for the power house and perhaps most notably, the boiler frame structure and trusses.

The company, a unit of the Hyundai-Kia Automotive Group, spent $321 million alone to build enclosed storage facilities that accommodate 4 million tons of iron ore and coal, and feed three blast furnaces that will be capable of producing an astonishing 8 million tons of steel per year. The

indoor storage facilities, in a similar method to KOSPO’s Samcheok power project, eliminate dust from materials being moved to and from the mill’s blast furnaces.

Using integration software from ILS Technology, Cisco networking gear, and other tools, such as ILOG optimization software, Hyundai Steel set out to build an automated mill that could operate 24 hours per day, seven days per week in the most efficient and cost effective manner possible.

Not content with the green, fully automated production environment at the mill, Hyundai Steel also took one step further, captivating the vast gas resources generated by the steel making process to construct a world class power plant, reducing the mill’s greenhouse gas emissions by 3.3 million metric tons per year.

The Dangjin Steel Waste to Energy Recovery

PI_JanFeb_Hyundai_Steel.indd 73 07/03/2013 08:03


project is a 400MW cogeneration plant, developed by Hyundai Green Power Co Ltd, a special purpose vehicle jointly formed through Korean utility KOMIPO and Hyundai Steel. KOMIPO were an ideal partner to bring their expertise in the � eld of operation and maintenance in the power business .

� e project utilizes waste gases created by the steel production to generate electricity for plant use and export to the grid. � is surplus gas produced in this facility and many other integrated plants across the world, includes BFG(Blast Furnace Gas), COG(Coke Oven Gas) and LDG(Linz Donawitz Gas).

� e primary deployment of the gas has been for reuse in the steel mill and then � aring, but now the bulk of the waste gases will be consumed for energy and steam through the exciting cogeneration development.

� rough the lifecycle of this plant, approximately 2,741,035MWh of electricity will be sent to the power grid, and 1,285,000 tonnes of steam will be dispatched to the Dangjin works for use in production.

� e project brings a number of bene� ts to Hyundai Steel and South Korea, through the use of ‘local energy’ rather than importing resources from foreign countries, but more signi� cantly setting an example to the industry on the pollution reduction e� ort undertaken by Hyundai Steel, meeting the environmental policies of South Korea, and demonstrating to the steel industry what can � nancially be achieved with integrated steel production facilities and innovative use of waste gas, at a time when the industry is struggling.

� e various types of waste gases created in steel mills, all originate from a di� erent production process. Blast Furnace Gas is a by-product generated in the blast furnace itself, when the iron ore is reduced with coke and limestone to form liquid slag and iron. On top of the furnace are uptakes where the gas exits the furnace dome and heads for processing through the dry and wet procedures. � e Blast Furnace Gas can then be used as a fuel for power plants. � e ignition point is around 650℃.

Coke Oven Gas (COG) comes from the dry distillation of � aming coal. � e ignition point is around 600℃, and its � ame is red. Its gravity is 0.36 which is lighter than the air. After the electric precipitation process and re� ning through the pre-process including desulfurization, Coke Oven Gas it can be used as fuel for power plants.

Linz Donawitz Gas (LDG) comes from the decarburization process which gets rid of impurities from the melted iron from the blast furnaces. LDG is the by-product gas created while adding O2 to the metal, and it contains a small amount of dust. Its � ame is either light blue or light brown, and its gravity is similar to the one of BFG. LDG can also be easily used as fuel for power plants after dry-and-wet cleansing process.

The Hyundai Green Power project will be using all of the mentioned waste gases (BFG, COG, LDG).

� e baseline scenario that was presented to Hyundai Steel was that in the absence of a power plant, the blast furnace will be built, and a portion of the waste gas produced from the blast furnace, will be recovered for inner use, while the rest of the waste energy used will be emitted to the atmosphere after incineration. Without the cogeneration facility also, the required steam for Hyundai Steel would also have to be produced using LNG. In consideration of the savings that could be made, construction of an associated power plant made complete � nancial and environmental sense.

So it was decided that implementation of this advanced waste to energy initiative would be a cost and operationally e� ective venture for all parties concerned and construction began during 2008, with

reputable Korean engineering majors KEPCO E&C, Daelim Industrial and Daewoo Engineering & Construction. After a successful execution the plant went into commercial operation during the latter half of 2010. � e project also importantly quali� ed for environmental credit through global GHG program Veri� ed Carbon Standards (VCS).

� e power plant is con� gured in a 4 x 100MW arrangement with subcritical, balanced draft drum type steam generators and high pressured, single current steam turbines. � e plant is also equipped with key auxiliaries in measuring and control devices, but also stringent air pollution techniques with a Selectvie Catalyitc Redcution (SCR).

Electricity is transmitted to the Nae-do Hyundai Steel district using pre-installed cable, when power is transmitted outside of the district it uses the national grid. � e data is monitored and collected by EMS-IRTV system, which is subsequently sent to the Korean Power Exchange for purchase.

As the project is constructed within the Hyundai Steel complex in Naeodo, the industrial water requirements are supplied through the existing supply pipeline. � e plant comes with a comprehensive waste water treatment arrangement, consisting of an activated carbon absorption system.

Waste water from the plant is released after passing through the treatment facilities and meeting the e� uent quality standard. � e waste water is however, only released when it is signi� cantly above the standard and does not contain any toxic substance or heavy metal element. � is is to ensure that it has no impact on the aquatic environment.

Hyundai Green Power selected a submerged cooling water intake/discharge method that reduced the distance and the di� usion area of mixing the surface layer and the bottom layer of water. In order to decrease the temperature of heated e� uent, the length of drainpipe was extended to 1,570m.

� ere are now a total of three other waste to energy gas generation projects in South Korea including the Dangjin project. In the construction phase of this project, the two other integrated steel mills in South Korea, both belonging to POSCO, were closely analyzed for performance indicators and operational experience.

� e POSCO Gwangyang Cogeneration plant is a 248 MW plant comprising of a two set eco friendly gas turbines in a combined cycle application running on blast furnace gas and coke oven gas, each with an output of 142 MW. � e POSCO Pohang FINEX power plant was Korea’s � rst to utilize low BTU by product gas from steelworks and has an output of 145 MW. � e remaining steel mills in South Korea are electric furnaces which do not emit BFG, COG and LDG during the process.

� e steel industry is going through a di� cult era at the moment as the Chinese market has slowed signi� cantly, whilst Europe and the US continue to be stagnant. � is is placing even more pressure on steel producers to cut costs wherever possible, in a challenging economic period. Implementing these projects can be a heavy capital investment but the payback is signi� cant through improved cost performance.

Such as been the success of Hyundai Greenpower’s venture that the signing ceremony recently took place for a project � nancing agreement, to build an additional four 100MW thermal power plants (units 5-8) at Hyundai Steel, with project participation from a number of key stakeholders again such as KOMIPO, Hyundai Steel and the Korean Development Bank.

By securing � nancial resources in the � nancial agreement for constructing the additional plants, Hyundai Greenpower has prepared a foothold for a take o� towards a large-scale power generation company having 800MW facility capacity.

With the successful � nancing agreement, Hyundai Greenpower obtained recognition of its strong business performance with the previous power plants and has secured 524.8 billion won in capital for the total project cost. KOMIPO is also able to secure the investment income with its capital investment activities and consulting fees with a management & technology consulting contract in addition to the � rst four units of power plants constructed earlier. KEPCO E&C won the owner’s engineering contract for Units 5-8 and delivery is expected to come online at the beginning of 2014.

WASTE TO ENERGY & THE STEEL INDUSTRY




online boiler cleaning


Tried hammers, soot blowers, rappers, sonic horns, and other devices, with little

improvement? Here is a Swiss company that has solved online boiler cleaning with a clever and unique process using dosed and controlled gas detonations to make boiler fouling a concern of the past.

It has been known for quite some time that sticky and hard deposits on the fireside of boiler tubes can be removed very effectively by blasting them with dynamite or similar explosive matter. However, this method bears significant disadvantages, notably the risk of causing severe damage to boiler tubes and walls. Furthermore, in many countries the handling of explosives will need to overcome significant logistic and permitting obstacles.

Over ten years ago, engineers with a track record in waste-to-energy in Switzerland discovered that a detonation combustion of a mixture of common industrial gases like methane and oxygen, has the ability to create similarly powerful shock- or pressure-waves. Now, if such detonations can be harnessed and created inside of boilers in a controlled manner, cleaning with explosions would be a viable alternative to soot blowing and other online cleaning methods.

Thus, a technology was born, and subsequently commercialized, patented, and trademarked worldwide, including in China, under the name bang&clean®, allowing the online cleaning of boilers in a safe, simple and easy to perform manner.

At the heart of the technology is a specially prepared, heat resistant plastic bag, which is introduced into a boiler at the tip of a water-cooled lance. Once inside of the boiler the bag is inflated with a mixture of a combustible gas and oxygen, and brought to a controlled detonation by an electric trigger.

The resulting shock- or pressure waves travel through the boiler at supersonic speed, causing boiler walls and tubers to vibrate strongly, and together with direct impact, forces break up, blast off and dislodge all forms of sticky and hard deposits of soot, ash and scale.

Worldwide, the technology has found a wide acceptance with operators of waste-to-energy plants, but also with coal-, oil-, and biomass based steam generation facilities. In addition, this method of applying detonation-or pressure-wave cleaning can be used for any vessel containing unwanted

deposits, including ash silos and hoppers, ESPs, spray Absorbers, and HRSGs. In addition it has been deployed very successfully in blast furnaces, cement kilns and black liquor fired steam plants.

There are two basic applications of the technology: Manually by introducing gas filled bags, and automatically by installing a permanent device, which injects the pressure waves into the boiler: The Explosion Generator.

Manual Cleaning with bang&Clean® For manual cleaning applications in Asia, teams of cleaning specialists operate from Explosion Power’s bases in Hong Kong and Shenzhen. They bring equipment, and perform the cleaning under single or repeat contracts. A typical cleaning procedure will involve some 50 to 100 explosions per boiler and may extend over one to two shifts, depending on boiler size, configuration and degree of fouling.

Equipment for Manual Cleaning

the explosion generator®In a further development of the bang&clean technology, the Swiss engineers developed an automatic device, which enables the generation of that same powerful detonation in a certified high-pressure cylinder outside of the boiler, and directing the resulting pressure wave into the boiler through a connecting tube. This allows a fully automated and continuous application of online pressure-wave cleaning.

The Explosion Generator bears distinct advantages over other cleaning equipment, notably the absence of any wear and tear on boiler tubes, no use of process steam, and reduced space requirement.

Explosion Generators can be installed instead of soot blowers, or at any convenient location along a boiler including in radiation passes, and ash hoppers, absorbers, and ESPs. The unparalleled effectiveness of the Explosion Generators has allowed a WTE plant in Switzerland to replace twenty soot-blowers, and a shot ball cleaning system with eight EGs, very much improving the thermal performance and efficiency of the plant, prolonged operating hours between shutdowns, and reduced cleaning costs dramatically.

ApplicationsIn Europe, and more recently in the United States, operators of waste- to-energy plants have become the most eager clients to use manual cleaning with bang&clean® bags, or Explosion Generators. These operators are motivated by the attractive tipping fees for waste, high energy content of the waste, and high tariffs for electricity, reaping immediate monetary

Online BOiler Cleaning with gas explOsiOns:SiMplE, SafE & EffECtivE!

Cleaning team in action

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benefits from higher plant revenues, but are also able to appreciate the savings from lower steam wastage and less wear and tear from soot blowing, reduced consumption of start up fuel, and lastly being able to avoid a dirty and dangerous maintenance job every three months, or so.

In Asia, the economic benefits of online cleaning are less obvious, because of much lower tipping fees and electricity rates, but still we have established long term relationships with clients, which are serviced regularly by our manual cleaning teams. We have also sold the first sets of Explosion Generators. We are convinced that with the expected boom in waste to energy plants, our business has a very bright future.

We also find a strong interest from operators of coal-fired power plants looking for online and pre-cleaning of boilers before shutdowns. Burning coal of significantly lower qualities, tends to create large ash and soot accumulations at the tip of hanging super heater tubes, meaning that maintenance personnel

entering a boiler are exposed to dangerous ash and clinker falling from pipe bundles, high above their working area. Blasting such deposits off with detonations prior to a shutdown vastly improves the operational environment from a safety perspective, not to mention shorten or even avoid a manual cleaning job and shutdown.

In Asia we have done pioneering work with full scale cleanings at HRSGs in gas fired combined cycle power plants - against the conventional wisdom that gas-fired combined cycle plants do not suffer from boiler tube contamination (see the case study below).

Case studiesChemical Waste IncineratorA chemical waste incinerator company located in a petrochemical complex operates two incineration lines, burning waste products from adjacent petrochemical plants, and returns process steam. Both incineration lines were already operating at reduced steam output due to boiler fouling, when a mechanical problem at one line called for a shutdown of that line for a few days. The operator was concerned that he may not be able to fulfill contractual steam delivery obligations to his client across the fence from one line only. An urgent call to Explosion Power was immediately responded by mobilizing equipment and a cleaning team to the plant. During an 8-hour cleaning intervention series of detonations were placed in all critically dirty parts of the boiler. Steam production in the cleaned line improved immediately, and the operator could proceed with the shutdown and repair of the problem line without hesitation.

Combined Cycle Power PlantA utility operating a combined cycle power plant, operated initially with diesel, and more recently with natural gas, for the first time in many years, entered the two very compact heat recovery steam generators (HRSGs), and finds the finned boiler tubes heavily clogged from soot, scale and rust. Access to the

Explosion Generator in coal fired power plant

A clear visible impact of two bag detonations in a chemical incinerator’s second radiation pass.

Typical overhanging accumulations.


online boiler cleaning


pipe bundles was very restricted, and blasting of the tube bundles with compressed air arduous, dangerous and above all, only effective on the first rows of the

tube bundles. After a careful assessment a team of manual cleaners spent several days placing bang & clean bags, and after over 120 detonations recovered

some 1.5 tons of scale and ash in two 8-hour shifts. The client now cleans his HRSG more regularly with our bang&clean® technology.

Resources Recycling PlantA waste recycling plant has been using bang&clean for many years and was so satisfied with the pressure wave cleaning using the bang&clean technology

that he cleaned every two weeks. Given the almost continuous use of explosion cleaning, the operator highly welcomed the automated version and he ordered a large number of explosion generators replacing all of his rappers and soot blowers.

Waste to Energy Plant using Gas Pulse BlowersA waste to energy plant has been operating for several years, and instead of rappers and soot-blowers is using so called gas pulse blowers. The operator was looking to extend his plant running hours as the gas pulse blowers have only a limited effect. He commissioned Explosion Power Hong Kong to clean the boiler to prove the higher effectiveness of bang&clean® technology over the pulse blowers.

Explosion Power Hong Kong Limited (EPHK)EPHK is a subsidiary of Explosion Power GmbH of Switzerland. The company was established in 2008 and operates from Hong Kong and from its wholly owned subsidiary E&P Environmental Technology (Shenzhen) Limited.

The company is the exclusive licensee for bang&clean® technology in Greater China, and for part of South East Asia.

Effective from 1 March 2013, Explosion Power GmbH has entered a global cooperation agreement with the Clyde Bergemann Power Group for the distribution of Explosion Generators

Alexander LuediIs the General Manager for EPHK. He has been in Asia for over 25 years, as an Oilfield Engineer, a Project Finance Banker, and a developer of IPP power projects. Alex has over 25 years experience in the energy industry.

Anthony Leung Ho HungIs the Sales and Operations Manager of EPHK. He has been with EPHK since 2008 and has orchestrated some 10,000 successful explosions during the past five years.

Explosion Power Hong Kong teamHRSG finned boiler tubes before and after cleaning

Explosion Generator at a WTE plant



Foster Wheeler’s CFB Steam Generators Provide Fuel Flexibility for Compelling Cost Savings and Improved Fuel Security

Foster Wheeler’s Circulating Fluidized Bed (CFB) technology has the proven ability to burn the widest range of solid fuels most cleanly and most reliably.

• High Quality Coals• Low Quality Coals • Petroleum Coke• Lignites• Carbon Neutral Fuels

www.fwc.com/GlobalPowerGroup

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