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Nuon Future plan: Magnum Project

Presentation RWTH-Aachen (02.05.2006)

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

Subjects

•Introduction Nuon•Definition and reasons for the Magnum Project•Overall technical data of the Magnum Power Station•The predecessor: the Nuon Buggenum Power Station•Lesson Learned from the operation of the Nuon Buggenum Power Station

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What is Nuon?Nuon is a Dutch energy company, market leader in the

Netherlands

Heat customers100% = 0.2 mln

Electricity customers100% = 7 mln

Gas customers100% = 6.4 mln

Green electricity customers 100% = 2.4 mln

ESSENTDELTA

ENECONuon

ESSENT

Nuon

Nuon

1) Market share for gas and electricity are based on the number of connections

Source: EnergieNed ‘Energy in the Netherlands 2004’, Company reports

Eneco25%

Nuon34%

Delta2%

Essent29%Others

10%

Eneco28%

Nuon29%

Others11%

Delta3%

Essent26%RWE

3%

Eneco41%Nuon

39%

Essent20%

Eneco18%

Others18%

Essent38%

Nuon26%

Presentation RWTH-Aachen (02.05.2006)

• Nuon is third generator in Netherlands

• 16 ‘grey’ generation assets on 9 premises in 4 clusters; Total installed capacity about 3500 MWe

• Efficient, dominantly gas fired generation

• Production of heat for district heating in Utrecht, Nieuwegein, Amsterdam-Zuidoost, and steam for Corus

• Several renewable assets in 7 European countries, dominantly wind; installed capacity about 500 MWe

• Syngas development and operational experience: Buggenum (coal, 250 MWe), Velsen (BFG, 400 MWe), IJmond – JV Nuon/Corus (BFG, 250 MWe)

Cluster Amsterdam

Cluster Utrecht

Cluster Oost

Renewables

Nuon - generation portfolio overview

Presentation RWTH-Aachen (02.05.2006)

MAGNUM Project TeamAugust 2005

Why the MAGNUM PROJECT?

Establish sound investment decision for the Magnum Power Station.

What is the Magnum Power Station?•multi-fuel, highly flexible power station;•very large capacity (1200 MWe);•net efficiency >= PC power station; •superior environmental performance; •(future) CO2-capture readiness;•year 2010/2011: connected to the E-grid;•based on the Buggenum power station;•“Lessons Learned” incorporated in design.

Presentation RWTH-Aachen (02.05.2006)

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

Rationale for the Magnum Project

•Nuon must build at least 1200 MWe new power production capacity:•replacement of old power stations with rather moderate efficiency;•growth in electricity consumption.

•IGCC (entrained bed technology) offers superior production and trading opportunities:

•can gasify a multitude of fuels with high efficiency and without operational problems;•can therefore adequately respond to changes in fuel market prices; •can produce both base load and peak load E-products;•can co-gasify large amounts of renewables (subsidies).

•Best Available Technology for Power Production with CO2-capture:•moderate efficiency losses when CO2 is captured;

•Best Available (Environmental) Technology :•SO2 removal: >99 %;•NOx-emission: can comply to requirements beyond year 2015;•dust: negligible;•heavy metals: emissions: Ni: 1.5%; As: 1%; rest negligible.

By-p

rod

uc

ts

CO

2

Entrained flow gasifier Wet gas cleaning

Acid removalWaste water treatment

Demin water production

Maximum syngas production 900 –1200 MWth

Combined Cycle Dual fueled Gas Turbines (Syngas and/or Natural gas fired)5 x 250 MW CC Units

Total Heat Input 2600 MWthTotal Electrical Output 1200 MWe

Simplified BFD of the Magnum Power StationUltimate design subject to change.

Oxygen and Nitrogen production

Gasifier(# units)

CC(# units)

Power

Nat.G

as

Air Separation

Unit

Steam / Heat

Emissions

N2

Syngas

Power

Air

O2

Coal

Sec. Fuels

By-p

rod

uc

ts

Section 1: Gasification

Section 2: Air Separation

Section 3: CCGT

Gas cleaning

Steam

CO2capture

Solid BiomassC

he

mic

als

N2

Co

olin

g W

ate

r

Ch

em

ica

ls

Presentation RWTH-Aachen (02.05.2006)

Nuon Power Buggenum BV

• Net Output: 250 [MWe]

• Coal input: 2000 [t/d ]

• Shell Gasification Technology

• Gas turbine: Siemens V94.2 Start up 1993

• Ramp speed: 3.5 [MWe/min]

Presentation RWTH-Aachen (02.05.2006)

The Predecessor: the Nuon Buggenum IGCC Power Station

Coal Milling and Drying

Coal Dust Feeding

Coal Gasification Syngas Dedusting/Dehalogenation

Syngas Desulphurisation

Clean Gas Conditioning/Power Production

Presentation RWTH-Aachen (02.05.2006)

Simplified Process Flow Diagram of the Nuon Buggenum Power Station

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

“Lessons Learned” from Nuon Buggenum Power Station Operation; Technical overview

Technical Problem Areas:•Syngas Production/Treating•Waste Water Production•Combined Cycle/ Air Separation Unit

•Work Done:•5000 plant design changes!

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

“Lessons Learned” from Nuon Buggenum Power Station Operation; General Overview

Problems encountered•Mechanical problems•Process problems; process control problems•Organisational problems

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

“Lessons Learned” from Nuon Buggenum Power Station Operation; Mechanical/Material Problems

Gasification Island•Thermal stresses caused by non-flexible tube-vessel penetration•Severe erosion/corrosion problems in gasification water systems •Severe corrosion in syngas scrubber•Severe damage of structures with ceramic lining •Flaws in the construction of the dust filter

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

“Lessons Learned” from Nuon Buggenum Power Station Operation.

Process problems; process control problems

Gasification Island•Coal dust feeding problems •Slagging problems in gasifier•Degradation of H2S-absorbent•Widespread scaling in waste water systems

Combined Cycle Unit/ Air Separation•Combustion instabilities in gas turbine•Product purity of oxygen/nitrogen

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

“Lessons Learned” from Nuon Buggenum Power Station Operation. Results

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2000

4000

6000

8000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

ho

urs

/ y

ear

Syngas + Natural gas

Syngas only

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

Conclusions

Nuon regards IGCC as the best option for a future new to build large power station. The reasons are that: •IGCC has/is:

•Superior fuel flexibility•Best Available Technology for power production with CO2-capture

•Best Available (Environmental) Technology •Nuon is experienced with IGCC-operation:

•“Lessons Learned” from the Nuon Buggenum Power Station will be fully implemented in the Magnum design

MAGNUM Project TeamAugust 2005

Presentation RWTH-Aachen (02.05.2006)

Thank You for your Attention!