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PRO-TEM Industrial Forum26th March 2010
Nick Booth
SVP Business Development, Sembcorp UK
Sembcorp Industries 2010 2
Presentation Agenda
Introduction to Sembcorp
Overview of the site energy demand
Examples of projects we have done to
improve heat utilization
Conclusions / Industry Perspective
Sembcorp Industries 2010 33
Group Structure
100%
Temasek Holdings 49.7%*
Public Shareholders 50.3%
Sembcorp Utilities
Provides energy, water and centralised utilities particularly to multiple customers in energy-intensive industry clusters such as chemical and petrochemical hubs
Sembcorp Environment
Provides environmental services with focus on pre-disposal treatment and waste-to-resource
Sembcorp Industrial Parks
Owns, develops, markets and manages industrial parks and townships
Sembcorp Marine
Market cap** S$7.7 bn
Offers a full spectrum of integrated marine and offshore engineering solutions from ship repair, shipbuilding, ship conversion, rig building & repair to offshore engineering & construction including topsides fabrication
100% 100% 61.3%*
Public
Shareholders
38.7%
Market cap** S$6.6 bn
* Direct and indirect holdings as at February 26, 2009. The percentage is calculated based on the number of issued shares excluding shares held as treasury shares** Market cap for Sembcorp Industries and Sembcorp Marine as at February 26, 2009
Sembcorp Industries 2010 44
UK Sembcorp Utilities
(UK)
MENA
Singapore Sembcorp Utilities
SUT Division
Sembcorp Cogen
Sembcorp Power
Sembcorp Gas
Propylene Purification Unit
Sembcorp Air Products (Hyco)
Sakra Island Carbon Dioxide
Sembcorp NEWater
UAE Emirates
Sembcorp Water
& Power Company
Sembcorp Gulf
O&M Co
Europe
China
Asean Vietnam Phu My 3 BOT Power Company
STRATEGIES FOR GROWTH
Organic growth
Establishing and growing beachheads
Developing greenfield & acquiring brownfield projects
New M&A and partnership opportunities
China Shanghai Cao Jing Co-generation Co
Nanjing Sembcorp SUIWU Co
NCIP Water Co
Zhangjiagang Free Trade Zone
Sembcorp Water Company
Zhangjiagang Free Trade Zone
Sembcorp Water Recycling Co
Sembcorp Tianjin Lingang Industrial Area
Wastewater Treatment Co
Shenyang Sembcorp Water Co
Qinzhou Sembcorp Water Co
Sembcorp Utilities Investment
Management (Shanghai)
Worldwide Locations
Targeted growth areas
Oman Sembcorp Salalah Power &
Water Company
Sembcorp Salalah O&M
Services Company
Sembcorp Industries 2010 55
Customers
Predominantly serving energy intensive industries
Sembcorp Industries 2010
UK operations
Landlord and utility provider to 770 ha Wilton Site
Operational since 1949 (ICI)
Large net energy demand (150MWe & 200MWth)
Many of customers already have extensive heat recovery systems
Sabic Ethylene Cracker
Lotte PTA plant
Huntsman Aniline
(Dow Ethylene Oxide – closed Jan 10)
(Invista Nylon – closed April 09)
Recent growth has been from Biomass / Bio-fuels & Recycling Sectors
6
Low grade heat demand has reduced dramatically
as Customers have improved their internal efficiency
Sembcorp Industries 2009 7
0
50
100
150
200
250
Site LP Steam Sales (ton/hr)
Site LP Steam Sales
Sembcorp Industries 2010
UKs largest industrial power station
(Combined Heat & Power) for many years
8
•Best in class reliability (only 4 site shutdowns in 59yrs)
•Multi-fuel concept ( Coal, Oil, Gas, Hydrocarbon by-products , Wood )
•A huge environmental success story ( 20M tonnes CO2 saved in 59yrs )
•On line optimiser developed in 1970’s (Bodo Linnhoff)
Significant investment program
Sembcorp Industries 2010
Sembcorp Biomass Power Station
2 frame 6 gas turbines (42MWe each)
Major refurb of original coal boilers
New 52MW steam turbine
UK’s first purpose built wood fired power
station (35MWe) commissioned in 2007
Built to improve efficiency of gas usage
(commissioned 2004 & 2009)
Security of supply & diversity of fuel sources
Required partly as consequence of reduced low
grade heat demand from customers
9
£200M invested since 2003
Relevant Projects
No6
Coal/Oil
No5
Coal/Oil
200degC
154degC
125degC
85degC
35degC
4 stage feed heat cycle(No condensate recovery from site as customers
use condensate for their own steam generation)
225MWth 225MWth input
Secondary 3 Secondary 2 & 6 (condensing
(Feed-heat unit) turbines-100MW loss)
Total electrical rating 188MWe (originally 280MWe – 4 redundant turbines not shown)
Background to changes
Plant configuration yr 2000
No7
Oil/Gas
No8
Oil/Gas
Primary
Turbines
33MW each
Boiler feed water temperature is 200degC
(Boilers have regenerative air heaters )
225MWth225MWth
Common stack
100MWth loss @140degC
( Sulphur dew point limitation)
110 barg
17 barg
1.3barg
0.7bara
Reducing stack losses
GT1 (42MW) commissioned in Oct 2004
GE frame 6581B under LTSA
Natural gas fired
117barg HRSG feeding into existing ST
Additional economiser sections were fitted to preheat additional boiler feed-water for coal boilers (in addition to heating its own BFW)
This non standard design had minimal extra cost but can preheat 90ton/hr BFW from 80degC to 200degC capturing an extra 12MWth from flue gases
105degC stack temp (maybe lower) can be achieved versus 140degC on coal/oil boilers
Wilton Site Gas fired CHP Plant
£65M BFB boiler (FW)
& steam turbine (Siemens)
Fuel source is around 40%
Moisture (mix of recycled
wood & sawmill / forestry
Residues)
Flue gas condenser being retrofitted in 2010 to extract more heat from chimney
Combination of sensible heat and latent heat
About 8MWth in total (8%)
Wilton 10 Biomass Project
No6
Coal/Oil
No5
Coal/Oil
80degC
Secondary 3
(Feed-heat unit)
Future picture with increased low grade heat capture
and taking into account lower demand from customers
due to their own increased low grade heat recovery
No7
Oil/Gas
No8
Oil/Gas
Primary
Turbines
33MW each
HRSG
HRSGs produce
excess 200degC
BFW for coal
boilers
HRSG
Counter current Hx
preheats incoming
water by cooling
BFW to GTs
200degC
New larger condensing
turbine to utilise steam
previously used in feed-heat
unit or supplied to customers
225MWth 225MWth
Sembcorp Industries 2010 15
Conclusions / Industry Perspectives
Increased enthusiasm for better energy efficiency driven by…..
High energy costs impacting margins (which are already under pressure)
Environmental taxes & green credits (i.e. the “carrot and the stick”)
Corporate Social Responsibility: marketing & perceptions
Capital is tight & “hurdle rates” have increased / risk appetite has reduced
Most of the quick wins have already been done
Sembcorp is a bit risk averse wrt New Technology (additional project risk)Simple & proven technologies have proved adequate so far anyway e.g. counter
current Hx , steam turbines , flue gas condensers , multiple effect)
Would consider absorption cooling (but limited cooling demand)
Not yet convinced that the proposed benefits of say Organic Rankin Cycle
outweigh the increased complexity / risk
“Its good to talk” ….whilst we have our perceptions around technical risks we still
want to be aware of best available technology so we can make an informed choice
