Exploring new revenue streams at modern power plants

Through the innovation of integrated gasification combined cycle (IGCC) plants being constructed in North America, power producers are searching for new and innovative ways to sell byproducts. The benefit of an IGCC facility is in the plant’s capability to potentially generate even more revenue from byproducts than from the actual power output.

During a session at the Oil Sands and Heavy Oil Technologies Conference in Calgary, Alberta on July 25, speakers discussed modern power projects that are exploring innovative revenue possibilities.

Harry Morehead, director of gasification and IGCC sales and marketing for Siemens (NYSE: SI), highlighted Summit Power’s Texas Clean Energy Project, which is being constructed in Penwell, Texas. The 400 MW IGCC project is equipped with 90 percent carbon dioxide (CO2) capture, equating to 2.7 million tons/year of captured CO2. This, Morehead said, is where one of the opportunities for byproduct sale exists. Most of the CO2, 2.5 million tons/year, will be purchased by Whiting Petroleum, Century Energy Resources and Blue Strategies LLC, and then delivered to the companies’ various oil fields via pipelines. The remaining CO2 will be delivered to a fertilizer company.

Carbon dioxide isn’t the only potential byproduct revenue stream from the Texas Clean Energy Project, Morehead said. Captured urea, which amounts to 710,000 tons/year, can also be sold for reuse to the fertilizer company that purchases the CO2.

At this particular facility, the revenue stream for the CO2 and urea byproducts will actually be greater than the revenue gained through generating power, Morehead said. Power generation will account for 30 percent of the plant’s revenue; urea 46 percent; CO2 21 percent, and argon and minor products such as sulfuric acid and inert non­leachable slag will generate 3 percent of the revenue. Construction on the plant will be completed this fall.

Dennis Williams, vice president of SNC-Lavalin, discussed opportunities for coal-fired power plants to sell recovered steam and CO2 to oil fields or projects in the Alberta Oil Sands. One process being explored by a pilot project in the U.S. is the Benfield Process, which combines a pressurized fluid bed process with carbon capture. “You have to find a revenue for the CO2,” Williams said. The main deterrent for such projects, at this point, he said, is the high cost of carbon capture and storage. “Will the economics make sense?”

Williams said plants using pressurized fluid bed and CO2 capture have been active in Sweden, Germany and Japan, but so far only test projects are in operation in North America.

Read more environmental remediation news

Sponsored by FLSmidth
Recommend this article Recommend this article () You recommended this article You recommended this article ()
Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Engineering Current Issue

Volume 118, Issue 3

Buyers Guide Product Listings

Dry Sorbent Injection

Clyde Bergemann has developed sorbent-based tec...

Buyers Guide Company Listings

Brandenburg Industrial Service Co

Brandenburg is one of the nation's largest turnkey demolition contractors, specializing in demolition, asbestos abatement, hazardous materials removal, soil remediation, dynamic compaction, asset recovery, plant improvement, and site closure.

Rentech Boiler Systems Inc

Rentech Boiler Systems offers HRSGs up to 40 MW, SCR systems, Industrial Boilers to 750,000 pph and all types of Waste Heat Recovery Boilers. Also upgrades to existing boilers.

Haldor Topsoe Inc

Topsoe offers SCR catalysts for all applications ranging from coal-fired boilers to diesel-gensets. Catalysts are produced in Europe and US.

Cormetech Inc

Cormetech is recognized as the world's leading developer, manufacturer, and supplier of catalysts for SCR systems. Cormetech's homogeneous honeycomb, titania-based ceramic catalysts are integral to the high performing SCR.

Power Industry Wire News

IKEA Group to Expand Customer Solar Offer Beyond UK to Eight New Countries

IKEA Group to Expand Customer Solar Offer Beyond UK to Eight New Countries

Geospatial Corporation Affiliate, ShaleNavigator, Exhibitor and Silver Sponsor at the 2014 Penn State Natural Gas Utilization Conference

Geospatial Corporation Affiliate, ShaleNavigator, Exhibitor and Silver Sponsor at the 2...

ThyssenKrupp Elevator Americas Drives Service Fleet Forward Using Less Fossil Fuels

ThyssenKrupp Elevator Americas Drives Service Fleet Forward Using Less Fossil Fuels

Sourcewater Founder to Present at Top Industry Conferences

Sourcewater Founder to Present at Top Industry Conferences

TGS Announces New U.S. Gulf of Mexico Deepwater 3D Survey

TGS Announces New U.S. Gulf of Mexico Deepwater 3D Survey

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>