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Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter Lau, PhD Region Manager Electric Power Gas Sales Asia Pacific, Caterpillar

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Page 1: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Maximize the Success of Methane to

Electricity -- Biogas & Renewable Projects

Peter Lau, PhD

Region Manager

Electric Power Gas Sales

Asia Pacific, Caterpillar

Page 2: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 2

Agenda

1. Options for Methane to Electricity -- Biogas &

Renewables Projects

2. Engine Technology Consideration & Selection

3. Engine Installation and Project Time Line

4. Engine Maintenance & Operations (M&O) Costs

5. Caterpillar Support of Power Projects

Page 3: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

1. Methane to Electricity Projects

Asia Pacific offers many possibilities

& options….

Page 4: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 4

Resource Rich – Biogas & Renewables

• Agriculture Rich

– Palm oil

– Cassava

– Sugarcane

– Coconut

– Rubber

– Rice

– Wheat

– Luciana

– Jathropa

• Gasification- Syngas

– Wood Gas

– Coal / Coke Gas

• Mineral Rich – Coal

– Natural Gas

– Crude

– Shale Oil and Gas

• Live Stock Rich

– Hog

– Poultry

– Cattle

– Seafood

Page 5: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 6

Typical Biogas Plant

Key Components

Waste Collection System

Bioreactor

Gas Pretreatment System

Gas Generator

Page 6: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 8

Gas CCHP Application

Engine Low Temperature

Circuit

Fuel

Exhaust Gas

Exhaust Gas Boiler

Engine

High Temp.

Circuit Cooling

Towers Absorption

Chiller

Electric

Power

Chilled Water

4 – 6 C

Page 7: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 9

Efficiency vs Uptime

Page 8: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

2. Engine Technology Consideration

& Selection

Page 9: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 11

Clean Power Options

• Gas Engines and Gas Turbines

– Environmental

• Low emissions, low noise, low vibration

– High Availability

• Power on demand, continuous, reliable

– Viable

• Low cost of ownership, fast payback, high ROI

– Proven

• Mature technology, growing market, bankable

Page 10: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 12

Caterpillar Gas Generator Set Platforms

CG260 CG132 G3500 CG170 G3300

Special Features

• Able to achieve high annual operating hours

• Able to run on low heating value fuels

• Able to handle corrosive gases

Page 11: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 13

Engine Design Trade-Off

High Robustness Engines (Traditional Otto, non-Miller)

• Accept higher siloxane and H2S contamination

• Efficiency below 40%

• Dirty gas forces more oil changes, higher M&O cost

• Excellent for: ‘dirty’ gas, worst-case ambient swings & quicker load response

High Efficiency Engines (Miller Cycle)

• Usually require costly siloxane & H2S removal

• Efficiency above 40%

• Lower M&O costs due to cleaner gas

• Excellent for: ‘clean’ gas, controlled environments, average load demands

OPEX CAPEX OPEX CAPEX

Page 12: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 14

Fuel Specification Guidelines

• All Manufacturers have guidelines for maximum fuel

contamination. Warranty depends on compliance.

• Miller engine users strongly advised to stay within

the limits of the ‘clean biogas’ definition

Non-Miller Engine Miller Engine

Fuel Contaminant

µg/Btu of

Fuel

Approx.

PPM*

µg/Btu of

Fuel

Approx.

PPM*

Halides (as Cl) 20 230 0.55 7

Sulfur (as H2S) 60 730 12.2 155

Siloxanes (as Si) 0.6 9.0 0.11 1.6

Ammonia 2.96 72 0.17 4

*Based on 500 Btu/scf Fuel Sample Recommendation for Optimal Engine Application

Page 13: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 15

Engine Technology Best Practice

• Run two separate economic evaluations of your methane to electricity project: – Scenario A: high efficiency engine (Miller, CCGT)

– Scenario B: high robustness engine (non-Miller, Gas Turbines, Micro GT)

• Include in your evaluation: – CAPEX: cost of contaminants removal equipment

required by high efficiency engine as well as any additional CC equipment

– OPEX: additional M&O for contaminant removal units

– Risk Factors: Reliability & Durability

Page 14: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

3. Engine Installation Options

Building v. Pre-fabricated Module

Page 15: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 17

Container Building

Page 16: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 18

Engine Installation Trade-Off

Building Installation

• Ample space for service

personnel, cranes for safe

lifting of heavy parts,

controls & storage rooms

• Economies of scale for

multi-engine buildings

• Easier to manage dust

contamination and air inlet

temperatures

Modular Installation

• Restricted access and work

space, more time & money

on service steps

• Fast deployment, easier to

quickly add or remove units

• Easier to obtain bank loans

• High reliability: complex

systems integrated by

engine manufacturer

Page 17: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

4. Better Estimation of M&O Costs

M&O Costing is critical to any

Methane to Electricity Project

Page 18: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 20

Estimating Maintenance & Operation Costs

• Most financial evaluation tools use just one number

for the M&O cost of a generator set

• Comparison of costs may not be appropriate

without knowing the different elements that went

into the M&O number

• Potential customers need to request separate

estimates for different combinations of service

– Window of time used for calculations is critical

– Gas type used for calculations also critical

Page 19: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 21

Cost per kWh, Cost per Running Hour

• L1-L7 are lists of different service alternatives

Page 20: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 22

Need to Break Down O&M Elements

Included in cost?

• Lube oil?

• Major Overhaul?

• Electrical Items?

• Unscheduled

Maintenance?

• System

Auxiliaries?

Page 21: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 23

Customer Service Agreements (CSA)

Inspection contract

Preventive maintenance contract

Maintenance contract

Full-service contract

CAT provides full support for service contract definition

and calculation

Full Value Chain

Page 22: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 24

Facts and figures

Storage space 12,000m²

Office and common space 600m²

Parts numbers / parts in stock Ø 40,000 / 2,000,000

Customer orders Ø 200 / day

Order items Ø 800 / day

Number of parcels Ø 200 / day

Weight shipped Ø 7,500 kg / day

Hours of operation Mo.–Fr. 7:00 am to 8:00 pm

Emergency service 24/7, 365 days / year

Orders placed by 5:00 pm (CET) will leave the logistic center the same day

CAT Service Logistic Center

Distribution Centers

• Morten and Frankfurt

• Singapore

• Shanghai

• Bangalore

• Melbourne

Frankfurt

Page 23: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Page 25

Caterpillar Asia Pacific Dealer Network

Australia

Energy Power System Australia

David Moore

+61-417-357-406

China (South & West)

China Engineers Ltd

Lu Yi Hong

+86-136-0289-0110

Japan Caterpillar Services Ltd.

Shinya Suzuki

+81-90-3243-6489

Singapore & Maldives

Tractors Singapore Ltd.

Sean Ang

+65-9232-7596

Bangladesh

BanglaCAT Ltd.

Zahid Islam

+880-171-309-0331

China (SW and NW)

ECI-Metro

Nicholas Thew

+86-139-8181-7050

Korea

Hae-In Co.

S.H. Kim

+82-2-3498-4572

Sri Lanka

United Tractors Ltd.

Manjula

+94-773-157-824

Cambodia

Metro Cambodia

Kim Veng Tan

+855-1251-2333

India (North)

Tractors India Ltd.

Rakesh Ananad

+91-971-133-1139

Malaysia & Brunei

Sime Darby Industrial

Chun Hoong Ng

+60-3-8068-8192

Taiwan

Capitol Machinery Ltd

CS Horng

+886-937-957-288

China (North)

Westrac China

Bill Chu

+86-10-5902-1666 ext. 6011

India (South)

Gmmco Ltd

Chandrasekaran

+91-984-096-6123

Myanmar

Myanmar Tractors Ltd.

Yee Yee Htwe

+951-547-304

Thailand & Laos

Metro Machinery Co. Ltd.

Somkiat Chawitcharoenwong

+66-848-743-642

China (Central)

Leishinghong Machinery

Johnson Jiang

+86-186-1677-2856

Indonesia

PT Trakindo Utama

Edwin Sentoro

+62-812-100-7681

Philippines

Monark Equipment Co.

Luis Diaz

+63-906-314-2735

Vietnam

Phuthai

Truong Dong Phuong

+84-903-830-498

www.catelectricpowerinfo.com/gas

Page 24: Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects · 2019-07-31 · Maximize the Success of Methane to Electricity -- Biogas & Renewable Projects Peter

Thank You For Your Attention!

Peter Lau, PhD

[email protected]

14 Tractor Road

Caterpillar Asia Pte Ltd

Singapore, Singapore