Gas Turbine Parts Life ExtensionPaul Jeffreys – Department Head, Gas Turbine Solutions, Uniper Technologies Ltd, May 2019

Agenda

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

Uniper at a glanceInternational energy company with more than 12,000 employees

Gas fired plants19.2 GW

Coal fired plants10.5 GW

Energy storageGas: 8.2 bn m3

Gas pipelines and infrastructure

Regasification

Nuclear plants1.9 GW

Hydroelectric plants 3.6 GW

Trading Energy sales (small to large clients, electricity and gas)

Services

Data: Uniper Annual report 2017

40+ countries around the world4th largest generator in Europe

Employees: 12,000

Power generation, Storage, Services - Europe

Power generation - International

Commodity Trading, Energy Sales

€1.7 bnEBITDA

100 yearsExperience

37 GW Total generation

Our operations

Power GenerationCommodity TradingEnergy StorageEnergy SalesIndustrial Services

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Expertise built on engineering excellence and owner operator asset experience

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We are independent of equipment and component suppliers, giving us freedom to choose the best solution for clients

We are a one-stop shop offering a broad range of services that work closely together, reducing complexity and risk for clients

Our background as an asset owner/operator gives us deep understanding of the energy industry and our clients’ needs

Our Conventional Plant Expertise

Ratcliffe (1967)4 x 500MW sub-criticalBabcock & Wilcox boilers 565°C, 165barFGD & SCR retrofits Efficiency ~37%

Maasvlakte 3 (2014)1100MW ultra-supercriticalHitachi boiler, Alstom turbine600/620°C, 285barCo-firing Bone meal &BiomassDistrict HeatingEfficiency ~46%

80+ years operating coal assets;

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Killingholme (1993)2 x 450MWSiemens SGT5-2000E525°C, 80barEfficiency >50%OCGT conversion

Irsching 4 (2011)570MWSiemens SGT5-8000H570°C, 170bar3 pressure + reheat, Benson boilerEfficiency >60%

25 years operating CCGTs

Agenda

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

Uniper Gas Turbine Technology Strategy Harmonise technology

Understand & manage risks

Improve outage performance

Reduce costs in line with technology maturity & risk

Respond to market changes

Leverage fleet knowledge & size

Parts Life Extension (PLE) –a key strategic programme

for Uniper

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Agenda

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

Gas Turbine - Parts Life Extension (PLE)Situation GT parts refurbishment & replacement (component

life) is specified by the OEM:

Running hours & starts formulae

Weighting factors apply (e.g. trips, starts, frequency response, peak firing, etc.)

At the end of the specified parts life, any residual operating life is wasted

Result is lower risk for the OEM - higher cost for the operator.

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SolutionUniper has developed a risk-based approach to extend GT parts life which can typically deliver 15-30% cost saving by

extending major outage intervals

Typical GT maintenance schedule

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Gas Turbine Illustration

Typical running costs over a GT lifetime

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1 Every 25k EOH

Every 50k EOH

Every 100k EOH

Hot Gas Path(blades, vanes, combustion)

1 + Compressor

+ + Rotor

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1 2

2

3 Every 2700 Starts

Every 1800 Starts

Every 900 Starts

NB: Numbers quoted above vary depending on GT type and are for illustration only

Optimised GT maintenance schedule Using the remaining life of the components…..Optimised maintenance

aims to remove one outage from the GT lifecycle of 100,000 hours

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Optimised lifecycles by components (ideal case)

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Every 25k EOH

Every 50k EOH

Every 100k EOH

Hot gas path(blades, vanes, combustion)

+ Compressor

+ + Rotor

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1 2

2

3

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Every 33k EOH

Every 66k EOH

Every 120k EOH

Hot gas path(blades, vanes, combustion)

+ Compressor

+ + Rotor

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1 2

2

3

121

11

321

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21

1

321 Typical

savings 23%

Running costs over

a GT lifetime

Optimised running

costs over a GT

lifetime

Maintenance lifecycles by components (OEM guidelines)

NB: Numbers quoted above vary depending on GT type and are for illustration only

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Robust Approach to Life Extension

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Identify and size the value opportunity

Preliminary risk review

Detailed technical evaluation

Implementation & monitor results

Assess technical risk against cost-benefit analysis, implement,

ongoing condition assessment, learn,

extend to other sites

Knowledge & data gathering, capability development, conferences, collaborative projects

Feedback, inform, learn

Develop work plan, obtain design & materials data,

testing, plant data, analysis, modelling

GT history, maintenance, parts condition, operating regime, fleet issues

Confirm contract status, outage

schedule, fleet data

Agenda

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1

2

3

4

5

6

Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

Contracting strategy to support PLE CONFIDENTIAL

Uniper has a mix of contract styles appropriate for its gas turbine fleet, based on:

Technology Risks Market Conditions

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Transactional Frame Contracts

LTSA

Price Certainty Security of Supply of Parts & Services Performance Guarantees Long Term Maintenance Flexibility Operations Flexibility Parts Ownership Low Lifetime Price

Frame contracts are seen as the optimum for many Uniper assets and are an enabler for PLE

Agenda

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

PLE Implementation A structured methodology for PLE, underpinned by technical

expertise:-

Identify opportunities for interval extensions; complete initial assessment of the value

Carryout preliminary risk review

Complete detailed technical evaluation to address identified risks

Preparation business case

Implement proposed outage interval extension

Regular reviews to monitor and manage risk during operation

Identify and size the value opportunity

Preliminary risk review Detailed technical evaluation

Implementation & monitor results

Assess technical risk against cost-benefit analysis,

implement, ongoing condition

assessment, learn, extend to other sites

Knowledge & data gathering, capability development, conferences, collaborative projects

Feedback, inform, learn

Develop work plan, obtain design & materials data,

testing, plant data, analysis, modelling

GT history, maintenance, parts condition, operating regime, fleet issues

Confirm contract status, outage

schedule, fleet data

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Technical Innovations to Support PLE Programme

Uniper Technologies has developed in-house expertise in a number of technical areas to support the PLE programme. These include: Component Modelling, including:

Blue light Scanning CFD and FE Analysis

Metallurgical evaluation of service run components Advanced Inspection Techniques, including:

Boroscope/NDT inspection of high risk components Image recognition algorithms

These support the Risk Based Approach to extended parts life.

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PLE Modelling Methodologies Blue light Scanning

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Detailed Metallurgical Evaluation of Components

Destructive examination To characterise the condition of the coating and substrate alloy To characterise the extent of any observed defects or

degradation

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Intergranular crack

Thermal fatigue crack

Advanced Inspection of Critical Components

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Borescope pathway

Laboratory simulation to develop improved NDT of blade cracks

Advanced Inspection Techniques

Use of image recognition techniques to: Identify and correlate specific blades between

sequential inspections Evaluate component degradation e.g. coating

loss between inspections

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Agenda

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

EOH Limit

PLE AchievementsSuccessful delivery of extended intervals on 4000F,GT26 and 9FA:

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EOH Limit EOH Limit

Starts LimitStarts Limit

OEM Limits Supported PLE LimitsOutturn

20% increase 4000F

WCE LimitWCE Limit

GT26

9FA

Significant Value Delivered to Uniper from PLE:Average benefit – Euro 1M/unit/year

EOH Limit15% increase

15% increase

25% increase

Summary

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• Uniper has significant experience (> 25 years) in operating CCGT assets and adapting them to market conditions.

• Research & development over several years to understand GT Hot Gas Path components, materials, design, coating and life expectancy

• Systematic processes in place to evaluate the risks and benefits for GT Hot Gas Path Parts Life Extension (PLE).

• PLE successfully implemented on 9FA, 4000F & GT26 machines.

• Average savings of Euro 1M / year on every asset where PLE has been implemented.

• Uniper is working with external clients to improve their CCGT assets performance and profitability at acceptable risk levels.

Agenda

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1

2

3

4

5

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Introduction to Uniper

Uniper Gas Turbine Strategy

Gas Turbine Parts Life Extension

Contractual Considerations

PLE Implementation

PLE Achievements

Questions7

Thank YouQuestions?

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Thank you!

If you need any further information, please contact us:

Uniper SEHolzstraße 640221 Düsseldorfwww.uniper.energy

Uniper disclaimer:This presentation may contain forward-looking statements based on current assumptions and forecasts made by Uniper SE management and other information currently available to Uniper. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Uniper SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them, to future events or developments.