15th annual caribbean energy enabling project development · 15th annual caribbean energy enabling...

© Wärtsilä

15th Annual

Caribbean Energy

Enabling Project Development – Reforms, Reality Checks, Fuel and Renewable Choices, Grid Firming

Raúl Carral, Ph.D.

Business Development, Mexico, Central America

& The Spanish-Speaking Caribbean

January 29-30, 2015

El San Juan Resort & Casino

San Juan, Puerto Rico

Disclaimer

This document is provided for informational purposes only and may not be incorporated into

any agreement. The information and conclusions in this document are based upon

calculations (including software built-in assumptions), observations, assumptions, publicly

available competitor information, and other information obtained by Wärtsilä or provided to

Wärtsilä by its customers, prospective customers or other third parties (the ”information”)

and is not intended to substitute independent evaluation. No representation or warranty of

any kind is made in respect of any such information. Wärtsilä expressly disclaims any

responsibility for, and does not guarantee, the correctness or the completeness of the

information. The calculations and assumptions included in the information do not necessarily

take into account all the factors that could be relevant. Nothing in this document shall be

construed as a guarantee or warranty of the performance of any Wärtsilä equipment or

installation or the savings or other benefits that could be achieved by using Wärtsilä

technology, equipment or installations instead of any or other technology.

2 © Wärtsilä 29 - January - 2015

Services Power

Plants

Ship

Power

Wärtsilä in brief

Business Areas

• Founded in 1834

• Headquarters in Helsinki, Finland

• Sales USD 6.2 bn (EUR 4.7 bn) in 2013

• Presence in 170 locations in 69 countries

Ship Power 28%

Power Plants 32%

Service 40%

Sales by Business Area

What do we bring to the market?

Fuel

Flexibility Efficiency

Environmental

Solutions

• 2 factories:Trieste(IT) & Vaasa (FI)

• +4300 MW of production capacity

• 4% sales = R&D budget (2013)

• Personnel 18,663 end of 2013

Asia 43%

Europe 25%

Americas 21%

Others 11%

Sales by Region


R&D Investments in Wärtsilä

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 213

Perc

en

tag

e o

f S

ale

s

Mil

lio

n E

uro

s

Investment

Percentage


Reference prices per kWh in The Caribbean


$0.20 $0.20 $0.22

$0.32

$0.36 $0.38 $0.38

$0.40

$0.43 $0.43

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

EDEESTE (República

Dominicana)

EDENORTE (República

Dominicana)

EDESUR (República

Dominicana)

BLPC (Barbados)

JPS (Jamaica)

LULELEC (Santa Lucía)

EDH (Haiti) GRENLEC (Granada)

APUA (Antigua y Barbuda)

DOMLEC (Dominica)

Dls

US

/ k

Wh

Source: “Pre-Feasibility Study of the Potential Market for Natural Gas as a Fuel for Power Generation in The Caribbean”; basaed on annual reports

from BLPC, JPS, LUCELEC, GRENLEC, DOMLEC, data from EDH, publications by APUA & Corporación Dominicana

de Empresas Eléctricas Estatales (CDEEE), EDEESTE, EDENORTE, & EDESUR

Terminology What do we mean by Natural Gas Liquids ?

Source: The US Energy Information Administration - EIA


7

Shale Gas from the US: Changing the

game for LNG, Ethane and other NGLs


-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Ethane - LEG DES Propane DES Henry Hub - LNG DES HFO NY FOB 3% - DES HFO NY FOB 1% - DES Brent

17 DEC 14

US Fuel Prices 1980 – 2014.

Based on estimated Ex-Ship Delivery – Caribbean (excluding regas)

Evolution of LEG, LPG, NG-HH-Brent price

Source: IEA, estimates on Ex-Ship Delivery to The Caribbean


Global LNG Market 2013 & Outlook LNG liquefaction and export

LNG exporting countries (17 countries)

Will become LNG exporting country

290.7 MTPA Global liquefaction capacity

at the end of 2013 (282.3 MTPA 2012)

Final Investment Decision Status

117 MTPA

FEED Status

260 MTPA

Papua New Guinea

will become country

number 18 during 2014

Potential to become a LNG export country

Re-exporting countries (Largest amount of LNG from Spain & Belgium 2013)

Qatar is still the

largest global

LNG supplier

77.2 MTPA

Spain re-exported LNG

43 % of total re-export volume

Source: IHS, USDOE, IGU


Global LNG Market 2013 LNG import and distribution

LNG exporting countries (17 countries)

LNG Importing countries

236.8 MT Global LNG trade during 2013

LNG is today

10 % (of the global gas consumption)

Total of 94 receiving terminals

80 On-shore & 15 FSRU

688 MTPA Global LNG receiving capacity

Japan

Korea

Taiwan

Source: IHS, USDOE, IGU EXPORT / IMPORT (existing route)

EXPORT / IMPORT (future routes ?)


Global LPG Market 2012 LPG production and export

260 MTPA Global LPG production 2012

WORLDWIDE 60 % of LPG from Gas Processing

40 % from crude refining process

LPG production is increasing

in relation to Shale Oil & Gas

production

USA &

Canada about 24 % of

total world

production Middle

East about 20 %

of total

world

production

Asia about 15

% of total

world

production


Regional LEG (Liquid Ethane Gas)

Market 2013 & Outlook LEG production and export

LEG exporting countries

USA Ethane export terminal

LEG production is

increasing in relation

to Shale Oil & Gas

production

Source: IHS, USDOE, IGU

?


Multifuel solutions for power generation

We offer solutions for liquid, NGL and

renewable fuels

Multifuel allows to generate power

with the cheapest fuels at a given time

Multi-fuel solutions which can flexibly change between fuels (liquid and gas) on-line

Hedge for future, solutions that can easily be upgraded from liquid to gas


Different Solutions for different fuels

HFO LNG LEG LPG

W34SG engines 1)

W32/34/50 DF

engines 2)

W32/46GD engines 3)


Multi Fuel Power Plant Technology

LNG Carrier LNG storage tank

Power Plant

Perfromance of the

plant will be different

depending on fuel LEG Carrier

Re-gasification

LEG storage tank Re-gasification

HFO Storage

Tank

LFO Storage

Tank

HFO Tankerr


More diversified fuels, efficient and flexible power • more choices for power generation – HFO, Natural Gas, Ethane, LPG

• riding the curve of what is better and more economical

• high operating variability and ambient conditions while maintaining high efficiency

• reliable, distributed generation wherever is needed

• selected use of combined heat and power (CHP) or tri-generation at up to 90% efficiency

• fast delivery of projects

Smart Power Generation is now critical for reliable, affordable and sustainable operation

Reliable Sustainable

Affordable

Smart

Power

System

Enables

What is Smart Power Generation?

Fuel

Flexibility Operational

Flexibility

Energy

Efficiency

Smart

Power

Generation


Examples multifuel power plants

Quisqueya I & II

430 MW Flexicycle™

Estrella del Mar II

105 MW Flexicycle™


Los Orígenes,

3 x 20V34DF +

2 x 18V50DF

25 + 34 MW, Multi-Fuel

HFO/Gas/LFO

LNG received by trucks

Gasification using cooling water

Heat exchangers




IPP3 - 38 x 18V50DF 632 MW

Amman Asia Electric Power, is a special purpose independent power producer, in

which Wärtsilä has a minority interest. The other owners of the company are

Korea Electric Power Corporation of South Korea (KEPCO) and Mitsubishi

Corporation of Japan. The project company will supply electricity to the National

Electric Power Company of Jordan (NEPCO).


© Wärtsilä

In summary

1. The trend in The Caribbean is to have a wider variety of fuels,

including HFO & NGLs; all of them can be used for power

generation provided their availability and right price

2. Multi-Fuel Wartsila technology enables HFO & NGL - readiness

starting on day 1

3. Wärtsilä has the capabilities to provide our HFO + small scale

and medium scale NGL solutions while integrating power

generation as a turnkey supplier

THANK YOU!

Smart Power Generation Raúl Carral

Business Development Manager, Power Plants

Houston, TX

+1 (281) 233-6200

[email protected]


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