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The Captive Power Station contribution to the Power System Development in Africa

Koos Smit Pr. Eng, Senior Analyst, thyssenkrupp, Middle East Africa Dr. Wilfred Barkhuizen Pr. Eng, Manager Power & Minerals, thyssenkrupp, Africa

thyssenkrupp Industrial Solutions

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Conclusion 4

Circular Fluidized bed Combustion (CFBC) 3

Captive Power Plants 2

Introduction 1

Agenda

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Conclusion 4

Circular Fluidized bed Combustion (CFBC) 3

Captive Power Plants 2

Introduction 1

Agenda

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Introduction

• “Sub-Sahara Africa (SSA) is starved for electricity”, whether we look at energy access, installed capacity or overall consumption.[Mckinsey & Company]

• SSA countries struggle to sustain GDP growth, due to the shortage in electricity supply to residential and industrial sectors. • The direct link between the availability of energy (and specifically electricity) and the development of countries as measured by GDP growth is a well-documented relationship. • GDP Growth in SSA needs a step change in the SSA power sector. • How do we get a step change in the SSA Power Sector ? SSA needs capacity(additional generation) and access (improved transmission)

[Source : Mckinsey & Company] [Source : Mckinsey & Company]

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Introduction

[Source : Mckinsey & Company]

• The insufficient and ageing power infrastructure in Sub-Sahara Africa is only one aspect.

• Single source energy supplies causes stability issues.[KPMG 2016]

• Significant energy losses due to the lack of adequate distribution infrastructure.

• Only fractions of the generated energy reaches the end users.

• “How efficiently the end-use can access the added capacity?” • There must be a power mix • Consider crossborder supply. • But , Economics of the sector must work

• Ensure financial viability • Create environment that will attract investment

(particularly private sector) • Demonstrate political will (complementary legislative)

• To address the issue of access and capacity the focus is on

Captive power.

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Conclusion 4

Circular Fluidized bed Combustion (CFBC) 3

Captive Power Plants 2

Introduction 1

Agenda

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Captive Power Plants

• The term “Captive Power Station” is defined, as a power station which supplies at least 51% of its capacity to a dedicated industrial facility [Hansen].

• Most basic captive power system in SSA are diesel generators, usually in the range 1MW to 10MW, however, various mines run multiples up to 40MW, mainly due to unreliability and subsidised diesel prices.

• There are a number of Integrated Gas Combined Cycle (IGCC) plants CPPs’ examples in SSA, with a fair number also in the development phase.

• The reality is that industrial project developers have to factor the building of captive power stations into their feasibility plans.

• The general range of CPP’s are from 1 -10MW for diesel units, 5 - 45MW for biomass boiler units and 15 - 150MW for Circular Fluidised Bed Combustion (CFBC) coal units. Gas units start at 1MW internal combustion machines and from around 5MW as turbines and generators.

• When Power Supply becomes an important factor to consider as part of the feasibility study of projects, factors such as flexible fuel source, reliability, and operating cost move to the top of the list.

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Captive Power Plants (CPPs) Case Study : India Power Sector Growth 1947 to 2015

• India is world’s 6th largest energy consumer, accounting for 3.4% of global energy consumption.

• Due to India’s economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. At the end of 2015, the installed power generation capacity of India stood at 270 GW, while the per capita energy consumption stood at 1000 KWh.

• The total demand for electricity in India is expected to cross 950 GW by 2030

Source: Growth of the Electricity Sector in India from 1947 to 2015, Government of India, Ministry of Power, New Delhi, April 2015

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Captive Power Plants (CPPs)

• Historically the approach to CPP’s was determined by the availability of a reliable energy source and the state of technology development. Therefore the focus in India was on the use of fossil fuels like coals and waste product such as sugar bagasse.

• The Possibility to use a range of fuels which includes biomass, torrified biomass, waste (high ash) coal, washery rejects, coal fines, petcoke, natural gas etc. as fuel, further adds to the economic and environmental value of these facilities.

• In many cases plants can be designed to use low grade fuels such as 60% ash containing coal. Coals of very high fines content which were historically collected in waste dumps, can be utilised with some pre-processing.

Source: Growth of the Electricity Sector in India from 1947 to 2015, Government of India, Ministry of Power, New Delhi, April 2015

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Conclusion 4

Circular Fluidized bed Combustion (CFBC) 3

Captive Power Plants 2

Introduction 1

Agenda

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Circular Fluidised Bed Combustion (CFBC) Case Study : Coal resources overview in SA

Source: PRÉVOST, X.M. AND MSIBI, M.D. (2005). In: DUVAL, J.A.G., South African Minerals Industry 2005-2006, Department of Minerals and Energy report, 42‒50.

• Specifically for South Africa – although there is a large focus on other (inc. renewable) energy sources, by 2030, 60% of the base load power will still come from fossil fuels.

• South Africa has abundant resources of low quality coal, washery rejects, and coal with high ash content.

• Vast reserves of discard coal have accumulated in South Africa; estimated to be close to 1.5 billion tones in existence.

• Drastically increasing the active use of CFBC Captive Power Plants (CPP’s) in the power system development in South Africa and Sub Saharan Africa (SSA) may be an overlooked opportunity.

Source: Related Comments – AD Engelbrecht, BC North, BO Oboirien, Making the most of South Afric’s low-quality coal, CSIR, 2010

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Circular Fluidized Bed Combustion (CFBC)

• Circulating fluidized bed technology has been overtaking other combustion technologies;

• It is particularly effective when burning reactive fuels with low heating values and high moisture and ash contents.

• The development of the fluidized bed technology has allowed the achievement of higher efficiency levels while reducing emissions and increasing fuel flexibility, which are key under current global market and environmental conditions.

• Typically discard coal calorific value falls within a range 2–14 MJ/kg.

• CFBC technology is increasingly establishing itself as the technology of choice where fuel flexibility and limestone addition as sorbent eliminates the capital cost of desulfurization units used in PC technology.

Source : 4 x 25MW UltraTech Cement

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Circulating Fluidized Bed Combustion (CFBC) Typical CFBC Schematic

Source : ThyssenKrupp Brochure for Cold Cyclone Circulating Fluidised Bed Combustion Boiler Technology

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Description CFB PC with FGD + SCR Benefits of CFB

Fuel size <8mm <75micron Crushing cost is reduced (No Milling)

Fuel range (ash + moisture) up to 75% up to 60% Possibility to feed a wider range including previously discarded coal

Higher sulfur fuels (1-6%) Limestone injection FGD plant required Limestone is a less expensive SO2 removal system, no need for FGD plant

Auxiliary fuel support (oil + gas) up to 20-30% up to 60% Less oil + gas consumption

Auxiliary power consumption Lower Higher Higher overall plant efficiency due to low auxiliary consumption

SO2 ppm <200 <250

NO2 ppm <100 <100 No Selective Catalytic Reduction (SCR) required on CFB

Boiler efficiency ≈87% ≈87%

O&M cost at 85% load factor 5-10% lower 5-10% higher Lower O&M due to less moving equipment

Capital cost 8-15% lower 8-15% higher

Source : Belaid, Falcon, Vainikka, 2014, South African Journal of Chemical Engineering, vol. 19, 2014, no. 3, pp 72-81

Circulating Fluidized Bed Combustion (CFBC) Benefits of CFBC over Pulverized Coal boilers (<150MW)

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Circulating Fluidized Bed Combustion (CFBC) Fuel Flexibility - Low Quality Fuel

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Conclusion 4

Circular Fluidized bed Combustion (CFBC) 3

Captive Power Plants 2

Introduction 1

Agenda

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Conclusion 1. A new class of power generation is developing in Africa, which needs to be firstly recognised and secondly encouraged.

2. This is not a unique development as the power systems in India have already developed in a similar way, and even today captive plants form a 20-

30% generation capacity in the country. (In Industrialised states such as Gujarat this is as high as 30%.)

3. Industrial consumers will find ways to satisfy their electricity needs, and a clever strategy will be for Governments to use the development momentum and support these developments. (as with the Indian development experience)

4. The building of a CPP is more likely to be facilitated by the regulatory, economic and financial issues than the technical or fuel issues.

5. Finally, with the correct regulatory frameworks and investment incentives, countries in Africa can create a distributed power generation network which can make an important contribution to the overall power system development.

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Questions? Thank you.

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Additional References

1. McKinsey & Company, Report - February 2015, Powering Africa, By Antonio Castellano, Adam Kendall, Mikhail Nikomarov, and Tarryn Swemmer, http://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/powering-africa

2. Utt, R., & Giglio, R. (2011). Technology comparison of CFB versus pulverized-fuel firing for utility power generation. IFSA 2011, Industrial Fluidization South Africa: 91–99.

3. Belaid, M., Falcon, R., & Vainikka, P. (2014). Pulverized coal versus circulating fluidized-bed boilers. Perspectives and challenges for South Africa. South African Journal of Chemical Engineering, vol. 19, 2014, no. 3, pp 72-81

4. PRÉVOST, X.M. AND MSIBI, M.D. (2005). In: DUVAL, J.A.G., South African Minerals Industry 2005-2006, Department of Minerals and Energy report, 42‒50

5. ThyssenKrupp Brochure for Cold Cyclone Circulating Fluidised Bed Combustion Boiler Technology. 6. Growth of the Electricity Sector in India from 1947 to 2015, Government of India, Ministry of Power, New Delhi, April 2015. 7. CSIR, Making the most of South Africa’s low-quality coal : Converting high-ash Coal to fuel gas using bubbling fluidised

bed gasifiers, AD Engelbrecht, BC North, 2010, Science real and relevant conference 2010. 8. Christopher Joshi Hansen, Bottom-up Electricity Reform Using Industrial Captive Generation: A Case Study of Gujarat,

India, Oxford Institute for Energy Studies, March 2008. 9. Pat Naidoo, P.A. Bacela, Power and Energy in Africa, IEEE Power & Energy Magazine, May/June 2012. 10. Tim Buckley, India’s Electricity-Sector Transformation, Institute for Energy Economics and Financial Analysis, August

2015. 11. J.J.Smit, R. Poenninghaus, D. Vokey, K. Wiig, M. Howlett, An Integrated Co-generation System for a Pulp Mill, IEEE

Africon 1996. 12. KPMG, Sector Report: Power in Africa, 2015. 13. Peter Penar, What lies behind Africa’s lack of access and unreliable power supplies, The Conversation, April 18, 2016 14. “Africa is tired of being in the Dark” says Akinwumi Adesina, AFDB President, http://thenerveafrica.com. 15. Antonio Castellano, Adam Kendall, Mikhail Nikomarov, Tarryn Swemmer, Brighter Africa, McKinsey & Co, February 2015.