Differential Pressure Generation

1
Differential Pressure Generation

• Presentation to CSIRO
• by
• RETX Energy Services
• November 2005

2
Agenda

• RETX Introduction
• DPG Concept and Value Proposition
• Operating Example
• Key DPG Applications and Potential
• Technology Overview
• Issue Management
• Implementation Phases
• Next Steps

3
RETX Energy Services

• RETX formed in 1999 to pursue opportunities in
  deregulated energy markets
• Recognized world-wide for demand side expertise
  (through IEA DR project with 12 countries)
• Significant experience in advanced metering,
  distributed generation, energy trading, market
  design, and new business development
• Relationships with key regulators, utilities,
  market participants, and financial community are
  key to success in DPG market

4
DPG Concept
No burning, no emissions
Gas going IN Gas coming OUT
5
DPG Characteristics

• Recovers energy used to transport or store
  natural gas
• Uses gas expansion, not combustion, to power
  turbine or piston engines driving electric
  generators
• Typically 500 KW to 10 MW output
• Performance depends on pressure differential and
  volume

6
DPG Value Proposition

• Recovers wasted energy and produces little or no
  emissions
• Augments rather than replaces existing generation
• Scalable solution can be sized to the available
  gas supply
• Low maintenance with proven components and cost
  comparable to traditional generation

7
Operating Example
5MMscf/hr producing 5MW
0.2 of total gas flow for heater
0.8 of total gas flow for heater
8
Operational Considerations
Gas Expander system runs in parallel to existing
city gate or pressure regulation infrastructure.
Real time control system can be configured to
maintain exit temperature, pressure, flow, or
generator output.
9
DPG Performance
10
Key DPG Applications

• Collocation with gas fired generation Energy
  Efficiency
• Industrial application behind the fence
  Distributed Generation
• City Gate Renewable Energy
• Underground gas storage Renewable Energy

11
Energy Efficiency Application

• Gas fired generation plants use large volumes of
  natural gas, generate heat, and have electrical
  interconnect infrastructure in place
• Requires deals with plant owner, plant
  operator, andgrid operator

12
Distributed Generation Application

• Industrial process plants use large volumes of
  natural gas, generate heat, and can use the power
  generated to offset other supply.
• Requires deals with plant owner, plant
  operator, andgrid operator, andbackup supply

13
Renewable Energy Application

• Natural gas city gates pass large volumes of
  natural gas, but generally do not have electric
  interconnect or heat source nearby
• Requires deals with gas LDC, gas pipeline, gas
  supply, andgrid operator

14
Potential Impact on US

• Over 23 trillion cubic feet of natural gas is
  delivered in the US alone
• The technical potential of DPG is 25,000 MW of
  electric capacity if all lost energy in US
  pipelines was recycled
• In addition, the reduction in CO2 would amount to
  over 200 million tons per year compared to
  conventional generation
• The US represents only about one third of
  worldwide natural gas consumption

15
Technology Overview

• Machines can be sized and optimized for specific
  flow and pressure conditions.
• This example is
• 2400 kW
• Integral Gear
• Induction generator
• Used in 500 MW combined cycle power plant

16
Technology Overview
Guide Vaneactuator
Gas exit
Gas inlet
Integral gearbox
Output shaft
Generator
17
Technology Overview

• For this application, the turbine is attached
  directly to the gearbox pinion

18
Issues to Manage

• Heat balance (Maintaining required outlet
  temperature and avoiding condensation)
• Effect on security and reliability of underlying
  gas supply
• Financial Settlement
• Counterparties

19
Implementation Phases

• Phase I Market Study
• Phase II Contracting
• Phase III Construction
• Phase IV Commissioning
• Phase V Operations
• Total time from initiation to operations is 13-18
  months dependent upon equipment lead time and
  resource availability

20
Next Steps

• Recommend proceeding with Market Study for
  deployment of DPG in Australia
• Gas Sources and Uses
• Electrical Infrastructure
• Regulations and incentives
• Power contracting and Emissions credits
• Survey of counterparties
• Applications and site prioritization
• Collaboration between RETX and CenDEP
• 3-4 month study yielding Australian market plan
  costing 200-300K US plus expenses