Economic Viability and Outlookof IGCC from a Gas TurbineManufacturer Perspective

GE Power Systemse

GE Company Proprietary

2001 Gasification Technologies ConferenceSan Francisco, California, October 7–10

Klaus Brun, Ph.D.Manager Process Power Plant Market and Product Development

Robert M. JonesProcess Power Project Development Manager

e

IGCC Market Outlook■ Forecast of 45-55 GW of New

Domestic IGCC Power Plants over theNext Ten (10) Years

GE IGCC Product Line■ 380,000 Hours of Syngas Experience

with Eight (8) Dedicated IGCCIndustrial Gas Turbine Models

eEarly 2001 - Record Natural Gas Prices

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Daily Southern California Natural Gas Spot Price ($/MMBTU)

General Electric Decided to QuestionGeneral Electric Decided to Questionthe Direction of U.S. Electric Power Marketthe Direction of U.S. Electric Power Market

e

■ Nuclear, Wind, and Hydro■ Natural Gas■ Coal Steam-Boiler■ Coal IGCC

Forecast Demand for AdditionalU.S. Power Plants (2002-2012)

300 GW 300 GW (in orders)

ePower Plant Comparison

Primary Factors Considered

■ Economic Viability

■ Environmental Performance

■ Operational Characteristics

eIGCC or Natural Gas?

Combined Cycle Fuel Price [$/MMBTU]

IGC

C F

uel P

rice

[$/M

MB

TU]

2.2

2.0

1.8

1.6

1.41.2

1.0

0.80.6

0.4

0.2

1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.50

Combined Cycle Preferred

IGCC Preferred

Coal

Resid

ues

Pet C

oke

Economic Divide

IGCC Always Beats NGCC When Fuel PriceDifference is Above $2.50 / MMBTU

eU.S. Coal and Natural Gas Forecast

Real Price Forecast (Average Contract)Source: HH, DOE/EIA, PIRA, WSJ, EEA (1999 Dollars)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

$/M

MB

TU

Coal

Natural Gas

$2.5/MMBTU

Coal: Superior Long Term Economics

e IGCC Turnkey Cost Currently $1050–1250per kW Installed

IGCC EPC Turnkey Costs Have Reached LevelsEquivalent or Below Steam-Boiler Plants . . .

3000

1975 1980 1985 1990 1995 2000 2005 2010

2500

2000

1500

1000

500

0

US

$/K

W

YEAR

e

■ Higher Efficiency ( 5%)

■ Environmental Performance

■ “Siteability” and Image

■ Experience

. . . But IGCC Beats Steam-Boiler Plants Because of . . .

~~

eSteam-Boiler Versus IGGC Plant Emissions

Particles

NOx

SOx

PC Boiler IGCCSO 0.05 0.017NO 0.15 0.028Particles 0.01 0.002

x

x

All Units lb/MMBTU*No SCR

*

• Mercury Removal• CO2 Sequestration

Upside Potential:

Superior Environmental StorySuperior Environmental Story

0.036

e

Study Conclusions■ Equipment Orders for 45–55 GW of

New U.S. IGCC Plants ( 15% of TotalMarket)

■ Majority of IGCC Plants will be 500 MWor Greater of Base Load Electricity

2002–2012 Power Market Outlook

~~

e

■ 24 Years Experience Testing Low BtuFuels

■ First IGCC Plant Commissioned in1984 (Cool Water)

■ 22 Syngas Gas Turbines in Operation

■ Over 380,000 Operating Hours onSynthetic Gas

■ Orders for 10 New Units Scheduled tobe Delivered in Next 3 Years

General Electric IGCC Product Line

e GE IGCC Gas Turbine and Combined-CycleProduct Line

IGCC 7FA

GAS TURBINESModel Syngas Power RatingGE10 10 MW (50/60 Hz)6B 40 MW (50/60 Hz)7EA 90 MW (60 Hz)9E 150 MW (50 Hz)9EC 215 MW (50 Hz)6FA 90 MW (50/60 Hz)7FA 197 MW (60 Hz)9FA 286 MW (50 Hz)

IGCCModel Net Plant Power Rating

106B 60 MW (50/60 Hz)107EA 130 MW (60 Hz)109E 210 MW (50 Hz)109EC 300 MW (50 Hz)106FA 130 MW (50/60 Hz)107FA 280 MW (60 Hz)9FA 420 MW (50 Hz)

Dedicated IGCC Gas Turbine Product LineDedicated IGCC Gas Turbine Product Line

e GE Gas Turbine Syngas ExperienceGE Syngas Hours of Operation

SyngasStartDate

Cool WaterPSITampaTexaco El DoradoSierra PacificSUV VresovaSchwarze PumpeShell PernisISE / ILVAFife EnergyMotiva DelawareSarluxPiombinoExxon Singapore

107E7FA

107FA6B

106FA209E

6B2x6B

3x109E6FA

2x6FA3x109E

109E2x6FA

120262250

40100350

4080

54080

240550150180

5/8411/959/969/96

- 12/96 9/9611/9711/96

-8/0010/0010/003/01

27,00020,40026,06024,080

071,76031,66050,370

114,5400

16011,970

3,850790

- 457

- 46,85940,0121,715

- 22,6874,461

10,560- -

2,8006,603

1,0004,1005,925

- - -

3,800- - -

2,89310,500

- 921

Customer

Totals 382,640

Type MW Hours of OperationSyngas N.G. Dist.

August 2001

IGCC Product Technology – ProvenIGCC Product Technology – ProvenThrough Operating ExperienceThrough Operating Experience

e GE Gas Turbine Syngas Capabilities

H2

CO

CH4

CO2

N2 + AR

H2O

LHV, - Btu/ft3

Syngas

37.2

46.6

0.1

13.3

2.5

0.3

253

Tampa

35.4

45.0

0.0

17.1

2.1

0.4

242

El Dorado

34.4

35.1

0.3

30.0

0.2

--

210

Pernis

14.5

23.6

1.3

5.6

49.3

5.7

128

SierraPacific

8.6

26.2

8.2

14.0

42.5

--

183

ILVA

61.9

26.2

6.9

2.8

1.8

--

317

SchwarzePumpe

22.7

30.6

0.2

5.6

1.1

39.8

163

SarluxPSI

24.8

39.5

1.5

9.3

2.3

22.7

209

34.4

55.4

5.1

1.6

3.1

--

319

Fife

44.5

35.4

0.5

17.9

1.4

0.1

241

ExxonSingapore

32.0

49.5

0.1

15.8

2.15

0.44

248

MotivaDelaware

33.34

42.44

0.06

17.76

5.72

0.08

230.4

New

42.3

47.77

0.08

8.01

2.05

0.15

270.4

PIEMSA

10.3

22.3

3.8

14.5

48.2

0.9

134.6

Tonghua

- kJ/m3 9962 9528 8274 5024 7191 12,492 64038224 12,568 9,477 9,768 9,079 10,655 5304

Tfuel F/C

H2/CO Ratio

Diluent

Equivalent LHV

700/371

.80

N2

250/121

.79

N2/Steam

200/98

.98

Steam

1000/538

.61

Steam

400/204

.33

--

100/38

2.36

Steam

392/200

.74

Moisture

570/300

.63

Steam

100/38

.62

H2O

350/177

1.26

Steam

570/299

.65

H2O/N2

300/149

.79

N2 / H2O

338/170

.89

N2

-

.46

n/a

* Always co-fired with 50% natural gas

- Btu/ft3

- kJ/m3

1184649

113*4452

1987801

1104334

----

2007880

----

1505910

*--

1164600

1505910

115.34543

1295083

134.65304

Demonstrated: 10% to 95% Hydrogen Demonstrated: 10% to 95% Hydrogen SyngasSyngas

e Example: GE 7FA Heavy-Duty Industrial Gas Turbine

7FA Natural Gas150–172 MW ISO

7FA+e IGCC197 MW ISO

192 MW ISO7FA IGCC Year 1995

Year 2000

Year 2004

– IGCC Combustor

– Higher Torque Rotor

– Higher Firing Temperature

– Modified Turbine Nozzle

– Combustor Developments

– Increased Pressure Ratio

7FA Advanced IGCC211 MW ISO

Continued Gas Turbine AdvancesContinued Gas Turbine Advancesto Enhance IGCC Plant Economicsto Enhance IGCC Plant Economics

e New Combustion Laboratory With Two DedicatedIGCC Full Scale Test Stands

Commitment to IGCC TechnologyCommitment to IGCC Technology

e

■ The Cleanest Coal Power Option

■ Efficient ■ Competitive

■ Mature

IGCC is ...

Forecasted 45–55 GW of New Domestic IGCCForecasted 45–55 GW of New Domestic IGCCPower Plants Over the Next Ten (10) YearsPower Plants Over the Next Ten (10) Years