Cogeneration Project - Conclusion

CONCLUSION
During the Malaysian Eighth Plan period (2001-2005), the development of the energy sector was focused on ensuring a secure, reliable and cost-effective supply of energy, aimed at enhancing the competitiveness and resilience of the economy. In the Ninth Plan period (2006-2010), the energy sector will further enhance its role as an enabler towards strengthening economic growth. A market-based approach will be promoted to ensure efficient allocation of resources. In ensuring efficient utilization of energy resources and minimization of wastage, the focus will be on energy efficiency initiatives.

The focus is more in improving the energy efficiency that can promote both environmental protection and energy security in a cost effective manner. In the nutshell, this is what PP(M)SB Cogen Project is all about.

Cogeneration Project - Benefits (Part 5)

INNOVATION
Businesses have a major role to play in helping to protect and enhance the environment conditions. There is a long-held perception that environmental protection is costly for business and that environmental degradation is a necessary, if undesirable, consequence of economic growth. However, that was not the case for PP(M)SB. Based on our experience, the use of environmental technologies can break this link i.e. they can drive innovation, bring new business and job opportunities, open up developing markets and enhance competitiveness whilst simultaneously contributing to environmental objectives. With the implementation of the Cogen Project, in addition to the profitability which is one of the core business challenges, PP(M)SB have also delivered innovative solutions with due respect to environmental protection. These include the followings:
•Reduction in the Greenhouse Effect – Approximately half million tons per year of CO2 is expected to be reduced as a result of the implementation of the Cogen Project.
•Reduction in the Acid Rain
•Eliminations of Hydrocarbon Release to Atmosphere

APPLICATION OF CUTTING EDGE TECHNOLOGY
The regulatory requirements for low emissions from gas turbine power plants have increased during the past 10 years particularly in the Europe and USA. Environmental agencies throughout the world are now requiring even lower rates of emissions of NOx and other pollutants from both new and existing gas turbines. The toxic effect of NOx occurs at concentration which is at least 10 times lower than the levels at which CO becomes toxic.

The ground level concentration of NOx as stipulated by Malaysian Air Quality Guideline shall be less than the 320g/m3. Based on the standard design without NOx abatement facilities, the amount of NOx presences in the GTG exhaust gas could well exceed 250 ppmv. Using a software simulation model, the predicted ground level concentration of NO2 under worst case meteorological conditions is calculated to be 139g/m3, i.e. still lower than the local regulation requirements. However to be proactive and more environmentally friendly, it was decided to equip the GTG package with the NOx abatement facility in order to further reduce the NOx presence in the GTG exhaust gas to be lower than 25 ppmv.

One approach in reducing the NOx formation is to reduce the flame temperature by introducing a heat sink into the flame zone. Both water and steam are very effective at achieving this goal. However, in the case of Cogen Project, steam injection is used as the method to reduce the NOx formation. A penalty in the overall efficiency must be paid for the additional fuel required to heat the water to combustor temperature. However, gas turbine output is enhanced because of the additional mass flow through the turbine. By necessity, if the water injection were to be used, then the water must be of boiler feedwater quality to prevent deposits and corrosion in the hot turbine gas path area downstream of the combustor.

Cogeneration Project - Benefits (Part 4)

REPUTATION
It has always been the PP(M)SB’s commitment towards pursuing the most efficient and environmentally-friendly refinery. As stated in the company’s HSE Policy Statement, it is our commitment to ensure that the facilities it designs, builds and operates are in accordance with the appropriate legal requirements, industry standards and best practices. The reputation of PP(M)SB pertaining to the protection of the environment is highly regarded by the authorities and the government bodies. The current track record and standard on the PP(M)SB’s environmental management and protection has to be sustained if not improved further.

With that in mind, prior to the implementation of the Cogen Project, PP(M)SB had engaged UKM Pakarunding Sdn Bhd to carry out a detailed Environmental Impact and Risk Assessment on the project. An EIA report contains an assessment of the impact that Cogen Project will have or is likely to have on the environment and the proposed mitigation measures that shall be undertaken to prevent, reduce or control the adverse impact on the environment. The mitigation measures will include the activities during construction, commissioning and operation phase of the project.

Cogeneration Project - Benefits (Part 3)

TRANSFERABILITY
Cogeneration is a mature, well established and proven technology especially in the Europe. The viability of the cogeneration primarily depends on the following key factors:
•Fuel Gas Tariff
•Electricity Tariff
•Market Barriers i.e. grid access, power export pricing, standby price
•Suitable Power Heat Ratio
•Stable Demand for Power and Steam

With a relatively low fuel gas tariff and high electricity tariff, it is worthwhile to investigate further the option of having cogeneration in lieu of the conventional electricity supply from the national grid. The viability of the cogeneration is also to certain extent been a consequence of a more liberalized government policy with regards to generation own power. In the Malaysian Ninth Plan (2006-2010), on the sustainable energy development, it is clearly stated that one of the strategies of the energy sectors is to ensure efficiency, sufficiency, security, reliability, quality and cost effectiveness of the energy supply. The Ninth Plan also focuses in developing new sources of growth in the energy sector including participation of local companies in energy related industries.

If the initial assessment suggests that it is worth proceeding further then a more detailed investigatory work will have to be undertaken. This includes the assessment on the heat power ratio of the site. The ratio of heat to power required by a particular site may vary during different times of the day and seasons of the year depending on the operating requirements of the plant. In the case of the PSR-1 and PSR-2, it is fortunate that the ratio is quite stable and suitable for the application of the cogeneration technology.

In short, the application of the cogeneration technology can be applied or transferred elsewhere depending on the above factors.

Cogeneration Project - Benefits (Part 2)

PERFORMANCE ENHANCEMENT
1.A well-designed and operated cogeneration plant will always provide better energy efficiency than conventional plant, leading to both energy and cost savings. With the implementation of the Cogen Project, the total energy efficiency will be increased from 63.9% to 82.7%. This is due to the fact that exhaust gas that is readily available from the gas turbines is used to heat up the boiler feed water to generate the high pressure steam

2.In addition to the direct cost savings, cogeneration also yields significant environmental benefits through using fossil fuels more efficiently. In particular, it is a highly effective means of reducing carbon dioxide (CO2) and sulphur dioxide (SO2) emissions. Oxides of nitrogen (NOx) are also generally reduced by the introduction of modern combustion system. Based on the analysis, approximately half million ton per year of CO2 and more than one thousand ton per year of NOx and SOx will be reduced by the implementation of the Cogen Project.

3.The fact that all five (5) generators running at partial load and providing about 40% of spinning reserve, has increased the availability of cogen power supply to 99.76% which is above the actual reliability of the TNB power supply to the refinery in year 2005.

4.A single fuel is used to generate steam and electricity, so cost savings are dependent on the price-differential between the primary energy fuel and the bought-in electricity that the cogeneration has displaced. Based on the Single Complex Economic Model, it is expected that an energy cost reduction in the range of RM XX million per annum will be achieved upon operating the cogeneration plant.

Cogeneration Project - Benefits (Part 1)

Cogeneration (Cogen), or Combined Heat and Power (CHP) is an enormous and growing market in Malaysia for the past few years. Based on the statistic produced by the Energy Commission (EC), the number of installed cogeneration unit in Malaysia has been increased from seventeen (17) in 1996 to thirty (30) in 1999, an increase of more than 75% within three years. The concept of cogeneration in Malaysia has been gradually accepted due to the availability of natural gas as the alternative source of energy and the continuous publicities and incentives introduced by the Malaysian Government in promoting the use of a more efficient and environmentally-friendly system.

The principle behind cogeneration is quite simple. Conventional power generation, on average, is only 35% efficient, therefore up to 65% of the energy potential is released as waste heat. More recent combined cycle generation can improve the efficiency to 55%, excluding losses for the transmission and distribution of electricity. Cogeneration reduces this loss by using the readily available heat to generate the steam.

In the context of Petronas Penapisan Melaka Sdn Bhd (PP(M)SB), it has always been the company’s commitment towards pursuing the most efficient and environmentally-friendly refinery. The more efficient the energy utilization, the less fuel is needed to produce the same amount of power and steam required by the refinery. This will contribute to the reduction of the energy cost and ultimately will improve the profitability of the refinery. Having a more environmentally-friendly system will also produce a better environment and a more favorable place to work.

Due to the above reasons, a Cogen Project was initiated, approved and implemented by PP(M)SB.