second generation compressed air energy storage the

MAN Diesel & Turbo Schweiz AG OSS / BroC 13.06.2012CAES 2 Technology

Second Generation Compressed Air Energy Storage

The Technology Geared Up For Europe's Renewable Energy GrowthDr. M. Nakhamkin Christian BrotelEnergy Storage and Power, LLC (ES&P) MAN Diesel & Turbo (MDT)

MAN Diesel & Turbo BroC, OSS CAES 2 Technology 13 June 2012

© MAN Diesel & Turbo Schweiz AG 2012 - All rights reserved.All Data and Information contained in this document is provided without liability for information purposes only,explicitly non-binding and is subject to change without notice. No representation or warranty is given or to beimplied as to the completeness of information or fitness for any particular purpose.Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.


Agenda

2

3

6

4

CAES2 Performance Characteristics for 440 MW / 227 MW and 17MW plants

Products used for CAES plants

CAES2 Plants performance and operational flexibility to meet renewables and smart grid requirements

Renewable Energies and Compressed Air Energy Storage

1 MDT & ESPC Company Introduction

7 Conclusion

5 Cost estimates and economics


MAN Diesel & Turbo ProductsTurbomachinery

Compressors and turbines for all industrial applicationsSingle machines and complete machinery trainsAxial and radial compressors, screw and gear-type compressors for volume flows up to 1.5 million m³/h and pressures up to 1,000 barGas and steam turbines for power generation or mechanical drive applications with outputs up to 51 MW (Gas Turbines) and up to 160 MW (Steam / Air Turbines)Industrial Expanders for energy recovery with outputs up to 35 MWChemical reactors and apparatuses


Energy Storage and Power


Renewable EnergiesFuture Outlook

1 Mtoe is the amount of energy released by burning one ton of crude oil, approximately 42 GJ


Energy StoragePower Industry Challenges

Industry Demand

Fluctuations

Primary Energies

Price Volatility

Renewables

Intermittency

Transmission Grid

Congestion

Baseload Arbitrage Reduce Price sensivity Enhanced Value Higher Distribution

Improved Balance

To handle the increasing intermittent renewable power generation and the resulting volatility of electricity prices, a significant amount

of energy storage capacity will be required.


Energy StorageRange of available Technologies

Available Storage Technologies Estimated Storage Costs


Energy StorageExisting CAES 1 Plants

Huntorf (1978) Germany

McIntosh (1991)USA

Turbine Power / Discharge time Old 290 MW / 2 hrsNew 320 MW / ~3 hrs

110 MW / 24 hrs

Compression Power / Charging time 60 MW / 8 hrs 50 MW / 38 hrs

Power ratio 0.19 0.45

Charge / Discharge time Ratio 2.7 1.6

Cavern Pressure 46 – 72 bara 45 – 74 bara

EfficiencyHeat Rate

42%6700 BTU/kWh

(without heat Recuperator)

54%4100 BTU/kWh

(with heat recuperator)

AvailabilityReliabilityStart-up reliability

90 %97 %95 %

90 %97 %95 %

Cavern 2 x 150’000 m3 (Salt Cavern) 538’000 m3 (Salt Cavern)


ES&P Developed and Optimized the AES’s 110MW CAES Plant Conducted Technical Supervision of the Project Execution

Gibbs & Hill / Herbert Delivered Project on EPC basis

FuelAftercooler

Compressors (50 MW)

LP HP

Expanders (110 MW)

HP IP-2 IP-1 LP LP HP

Intercoolers

SSS Clutches

Underground Storage Cavern: A Solution Mined Salt

Motor/Generator

Recuperator

Heat Rate 4100 Btu/kWhEnergy Ratio 0.81 KWh in/out

Exhaust Stack

Salt Cavern Air Storage:Depth 1500 ft

Volume = 22MCF

Pressure = 650 psi

Existing CAES 1 PlantsSchematic for AEC CAES Plant


CAES 1 plants are based on a complicated Combustion Turbine Thermal Cycle withunique and first of its kind components.

Casing arrangement of components along the single shaft leads to muchcomplicated train rotor dynamics and start-up sequence.First of the kind components engineered for the site specific CAES Plant:• Uniquely Developed HP combustors operating at variable airflow (for AEC at 800

psia and 1000F supplied by AIT UK)• Uniquely Developed LP combustors operating at variable airflow (for AEC at 200

psia and 1600F supplied by AIT UK)• HP Steam Turbine converted into expander and integrated with the HP

combustor• The industrial expander with increased TIT from 1350F to 1500 F that required

the first time applied by DR nozzles cooling• Expansion Cycle operating at constant inlet pressure only (Throttling of Cavern

Pressure necessary leading to efficiency losses)Longer switch-over from Compression mode to expansion mode and vice-versaNo scalability of the concept, the 1st Gen plants/components were built for the SiteSpecific Data

Compressed Air Energy StorageLessons learned from CAES 1

ESPC Developed, Optimized and Specified The Unique and Customized the 110 MW CAES Plant Based on AEC Specific Conditions


Compressed Air Energy Storage440 MW CAES 2 Plant Layout

Exhaust Stack

Low PressureCompressors

High PressureCompressors

Air Turbines

Gas Turbine

Recuperator

GT Air intake

Switchyard

Cooling System


CAES 2440 MW plant based on GE 7FA Gas Turbine

440 MW CAES2 Plant Concept withInlet Chilling Power Augmentation

420 MW CAES2 Plant Concept withAir Injection Power Augmentation


235 MW CAES2 Plant Concept withInlet Chilling Power Augmentation

CAES 2235 MW Plant based on GE 7EA Gas Turbine

227 MW CAES2 Plant Concept withAir Injection Power Augmentation


CAES 217 MW plant with Above Ground Storage based on MAN Diesel & Turbo GT6-2 Gas Turbine

17.2 MW CAES2 Plant Concept with Air Injection Power Augmentation

and duct burner(1500-650 psia)

16.9 MW CAES2 Plant Concept with Humidification and Humid Air

Injection(1500-800 psia)


17.2 MW CAES2 Plant Concept with Multiple Expanders / Sliding

Pressure Operation (1500-800 psia)

17.2 MW CAES2 Plant Concept with Multiple Expanders / Sliding

Pressure Operation (800-530 psia)

CAES 217 MW plant with Above Ground Storage based on MAN Diesel & Turbo GT6-2 Gas Turbine


CAES 217 MW – 2 hours CAES plant with Above Ground Storage based on Gas Pipeline Technology


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15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Energy Ratio %

of Full Load

Heat Rate %

of Full Load

Total Plant Load %

Heat Rate & Energy Ratio vs Load (GE 7B CAES IC)

Expander 100‐0% Air Injection 100‐0% GT 100‐60%

Heat Rate & Energy Ratio vs. Load

CAES 2Heat Rate and Energy Ratio at Part Loads


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Plant Load, %

Time, minutes

CAES2 Cold Startup with Synchronized Expander

Bottoming Cycle Gas Turbine Total Plant

Gas Turbine Synchronized

Bottoming Cycle Power Gas Turbine

Power

Total PlantPower

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60

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0 1 2 3 4 5 6 7 8 9 10

Total P

lant Pow

er, %

Time, seconds

CAES2 Load Control During Plant Operation / Regulation

Total Plant Power

CAES 2Start-up and load dynamic response

Load FollowingCAES2 Startup with Synchronized Expander

High Ramping ratesEmergency and Fast Start Capability


CAES2 vs. Batteries, Pumped Hydro Performance and Capital Cost Estimate

Parameters Batteries PumpedHydro

440 MWCAES2

with below ground storage

235 MW CAES2

with below ground storage

17 MW CAES2

with above ground storage

Total Power, MW 10-20 500 440 180 17

Storage Hours 4 10 10 10 4

Estimated Specific Capital Costs, $/kW 2800 2500 - 4000 900 1000 1200

Estimated Capital Costs, $/kWh 400-600 250-400 85-90 85-90 400-450


< 21 >

Compressed Air Energy StorageProduct Requirements & Matrix


Standardized Turbomachinery In different sizes ...

... standardized, but highly flexible

... suits all client and site-specific requirements

Standardized Auxiliary Systems

GEARBOXES

OIL SYSTEM

PIPING

AUXILIARIES

Frame Sizes

Rotors

Impellers

Bearings

Shaft seals

INTEGRATED

COOLERS

CAES 2 - Product Matrix & RequirementsStandardized line of Compressors


CAES 2 - Product Matrix & RequirementsStandardized line of CompressorsCompressor General Arrangement


CAES 2 - Product Matrix & Requirements GT Combination with Air Turbine

GE 7EA Net Output (base) 81 MW Max Air Turbine Power

+ + = 240 MW

Air Turbine will be mainly selected based upon the selected Gas Turbine (Heat Source)

GE LM 6000 Net Output (base) 43 MW

+ = 102 MW

MAN THM1304-15

Net Output (base) 12.2 MW

= 26 MW

MAN GT6 Net Output (base) 6.2 MW

= 17 MW


CAES 2 is based on a simple and reliable concept and on the utilization of standard“off-the-shelf” components with significant operational, maintenance and spare partsexpertise. It provides wide range of capacities from 10MW to 500 MWCAES 2 projects have design flexibility and operational advantages optimized for sitespecific conditions, renewable/smart grid operational terms and for customereconomical benefits:

low specific capital costs of app. 900-1200 $/kWlower heat rates – 3800 Btu/kWh, and energy ratios – 0.7-0.8Regulation/Load control – app. 60% of the total MW (the bottoming cycle) can bechanged within 10-15 sec.Synchronous reserve start-up - app. 60% of total MW will be delivered in 1-2 min.Combustion turbines with dry low emission (DLE) combustors have lowemissions which are further diluted on a per kWh-out basis by the green powergenerated by the expanders.

CAES 2 has a limited technical risk, a moderate investment costs, it provides afeasible technological solution today.Projects will be delivered jointly by MAN D&T and ES&P who are involved, on aWorldwide basis, in CAES 2 Technology and projects since more that three decades.

CAES 2Conclusion


All data provided in this document is non-binding.

This data serves informational purposes only and is especially not guaranteed in any way. Depending on the

subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend

on the particular characteristics of each individual project, especially specific site and operational conditions.


Backup Slides


Compressed Air Energy StorageCAES 2 Key Benefits

Key features at a glance:CAES 2 is based on a simple concept based on Standardized ComponentsFast Start Capability for both generation and compression modesHigh ramping ratesHigh turn-down ratiosHighly flexible Operation Concept. It can provide several ancillary services on Generation and Distribution levels:

Arbitrage, Frequency Regulation, Spinning Reserve, Balancing EnergyRenewables ramp smoothing, capacity firmingGrid Support, Congestion, Capital Deferral, Black Start / Black Grid supportSynchronous Condensing mode (power factor and voltage regulation)

No switch-over time losses from Compression to Expansion or vice versaLow EmissionsLow Capital investment due to optimization based on standard components Fully defined maintenance costsCAES 2 Total Cost of Ownership shall be evaluated for period over 20+ years


MDT Cooperation with ESPC on CAES2 technology forover 3 years• Providing Compressors and expanders proposals for several projects

MDT is working with various Utilities on a Worldwide basis on CAES projects in various study and developmentstages

CAES Norton (USA) 2001 Engineering Study Contract• Isotherm - Radial Compressor Train, using Dr. M. Nakhamkin patent

110MW CAES plant - Alabama Plant 1988• Sumbmitted proposals for Compressors with higher efficiency and

lower costs

Soyland * CAES Project (USA) Decatur, Illinois 1981 • Axial – Radial Compressor Train• Conceptually engineered by Gibson&Hill/Dr. M. Nakhamkin

CAES Plant Huntorf (Germany) 1976• Supplied Axial – Radial Compressor Train

* Awarded contract hasbeen cancelled during

detail engineering.

CAES2MDT CAES Technology Experience

Since more than three decades, MAN Diesel & Turbo is involved in CAES projects on aworldwide basis and has developed a substantial experience in CAES Projects and allcomponents associated with the CAES Technology


ES&P patented the First and the Second Generation of the CAES Technologies

DOE co-sponsor NYSEG/PGE CAES projects based on CAES2 Proposals

ES&P is working with various Utilities on a Worldwide basis on CAES projects in variousstudy and development stages

110MW CAES plant - Alabama Plant 1988• ESPC conducted the optimization and conceptual engineering of the project• ESPC was conducting technical supervision of the project execution including:

• Supervision of the turbomachinery development by Dresser Rand• Supervision of the HP combustors development by AIT• Development of the test procedures• Supervised performance guarantee tests and issued the Test Report

• Under contract with EPRI, ESPC recorded key plant parameters during 1991-1994 -three years after theproject commercialization, and issued “ Value Engineering” Report

CAES Norton (USA) 2001 using Dr. M. Nakhamkin Patent to replace the HP Combustor

Soyland CAES Project (USA)* Decatur, Illinois 1981• Conceptually engineered by G&H/Dr. M. Nakhamkin

CAES2ES&P CAES Technology Experience

* Awarded contract hasbeen cancelled during

detail engineering.

second generation compressed air energy storage the

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