Wabash River Energy Ltd. Project Update An Overview of the ... · 2000 Gasification Technologies Conference Wabash River Energy, Ltd. Project Update Year 2000 Downtime & Availability

October 10, 2000

2000 Gasification Technologies Conference

Wabash River Energy, Ltd. Project Update

Wabash River Energy Ltd.

Project Update

An Overview of the Past Year’s Activities for the

Wabash River Repowering Project

RICHARD PAYONK

GENERAL MANAGER, WABASH RIVER ENERGY, LTD.

GLOBAL ENERGY INC.

October 10, 2000



Wabash River Energy Ltd. Project Update

• Project Overview & Description

• Operating Experience

• Performance & Milestones

• Market-Based Operations

October 10, 2000



Project Overview• DOE Clean Coal Technology (Round IV) Program

• Global Energy / PSI Energy (CINergy)

• Coal Gasification Combined Cycle Repowering ofUnit #1 at PSI Energy’s Wabash River GeneratingStation in operation since 1995

• E-Gas™ Technology

• High Sulfur Bituminous Coal or Pet Coke

• 262MWe

October 10, 2000



Facility Location

OxygenPlant

GasificationPlant

CombustionTurbine

SteamTurbine

October 10, 2000



Recycle Slurry Water

ProductSyngasCoal SlurryMilling,

Heating &Feeding

High Temp.Heat

Recovery

GasificationCOS Hydrolysis,Moisturization &Condensate Heat

SourWater

CharRemoval

DischargeWater

HotBFW

SaturatedHP Steam

AirSeparation

Unit

SulfurRecovery

Unit

CoolSour

Syngas

Acid GasRemoval

SweetSyngas

Acid Gas

SulfurProduct

TailGas

SlagHandling

Char

QuenchWater

SlagSlurry

Air

Nitrogen

Oxygen

SlagProduct

Gasification ProcessSour WaterTreatment

October 10, 2000



2000 Performance & Milestones

• 85% Product Syngas Availability in 2000• 95% Product Syngas Availability on Pet Coke

• Demonstrated in Current Campaign:– 100 days of syngas delivery since June 14– Over 2200 operating hours and counting– 3Q00: 2.9 trillion Btus produced in over 2082 hrs– No gasification technology related downtime

October 10, 2000



Year 2000 Downtime & Availability Analysis

Principle Area Availability

Air Separation Unit 93.80%Fuel Handling 98.80%Gasification 92.50%Gasification Block Totals 85.10%

Power Block 89.89%

Overall Totals 74.99%

October 10, 2000



Year 2000 Downtime & Availability Analysiswith Industry Standard Projections

Principle Area Availability

Air Separation Unit 98.00%Fuel Handling 98.80%Gasification 92.50%

Gasification Block Totals 89.30%

Power Block 95.00%

Overall Totals 84.31%

October 10, 2000



Year 2000 Operating Experience

• Air Separation Unit

– MAC inlet guide vane upgraded Oct ‘99

– Longest unplanned outage caused by ASU

October 10, 2000



Oxygen Compressor motorterminal box damage caused bymoisture related ground fault

Comparisonphotos of

like-new andpost-ground-fault terminal

connections

October 10, 2000




• Fuel Handling

– Typical system availability exceeds 99.99%

– Failed storage tank agitator blade coatingduring summer ‘00

October 10, 2000




• Gasification– No technology-related outages in 2000

– No single syngas interruption exceeding 39 hrs

– Current slurry mixers over 2200 hours ofoperation, no sign of failure

October 10, 2000




• Sub-Systems with 100% Availability in 2000– Rod Mill System– Particulate Removal System– Chloride Scrubbing System– COS Catalyst System– AGR– Sour Water Treatment System

October 10, 2000




• Power Block– Power Block availability impacted by HRSG

tube failures

– Over 19 days of unscheduled downtime

– Failures are related to expansion issues withbottom supported unit

– CINergy continues to discuss HRSGperformance with OEM

October 10, 2000



Market-Based Operations

• History• Market Drivers

• Commercial Structure• Outlook

October 10, 2000



Market-Based Operations History

• March 1998 - Dynegy pursues sale of gasification assets

• September 1998 - Dynegy/PSI agree to contract buyout

• October 1998 - Dynegy announces agreement to sellgasification assets to Global Energy Inc.

• December 1999 - Dynegy/Global complete sale

• March 2000 - Operation under original contract ends

• June 2000 - Operation resumes under new market-basedagreement

October 10, 2000



Market-Based Operation Drivers

• PSI Energy• Contract buyout included gas turbine conversion

• Operation on natural gas would be peaking

• Operation on syngas must be best economical choice

• Global Energy• Maximize dispatch - Base load

October 10, 2000



Market-Based Operations Commercial Structure

• PricingüSyngas indexed to market power priceüSteam for power generation sold separately

• TermüEffective June 2000 through August 2003

• Other Key ElementsüGuaranteed annual availabilityüGlobal is responsible for feedstock

October 10, 2000



Gasification Plant Performance

4

5

6

7

8

9

1998 1999 2000

O&

M C

ost

(%

Cap

ex/Y

r)

20

30

40

50

60

70

80

90

Syn

gas

Ava

ilab

ility

October 10, 2000



Market-Based Operations Performance

• 89% product syngas availability under new contract

• Operation since August 14, 2000 on 100% petroleumcoke feedstock

• 95% product syngas availability on petroleum coke

October 10, 2000



Market-Based Operations Outlook

• Influenced by power and natural gas price volatility

• Expect to be profitable under current arrangement

• Continued focus to reduce feedstock costs

• Operation on pet coke allows “extra” syngas forincremental capacity additions; co-productionopportunities

• Longer term vision of multiple feedstock, multipleproducts facility

Documents

Wabash River Energy Ltd. Project Update An Overview of the ... · 2000 Gasification Technologies Conference Wabash River Energy, Ltd. Project Update Year 2000 Downtime & Availability