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

Related Articles

Bagging Two Birds with One Economizer

Sometimes power industry professionals get lucky when a solution developed for one complex challenge provides coincidental benefit for an unforeseen issue that arises in the future.

A Low-Cost Pollutant Control Solution: Installing a DSI System at a Midwest Utility

New regulations have restored interest in DSI as a low capital-cost, multi-pollutant control solution. Learn about the installation of a new DSI system at a coal-fired station in the Midwest.

Follow Power Engineering on Twitter
Latest News
Ideal Power energy storage batteries agreement

Agreement signed to develop energy storage solutions

Ideal Power (Nasdaq: IPWR) signed an agreement that will allow KACO to sell its products unde...
EPA must redo air pollution limits in 13 states

Court orders EPA to redo air-pollution limits in 13 states

A federal appeals court on Tuesday ordered the Environmental Protection Agency to relax some ...
Fukushima Daiichi nuclear power plant decommissioning TEPCO

First step taken in Fukushima nuclear decommissioning project

The decommissioning project at the Fukushima Daiichi power plant in Japan begins a crucial st...
Baltimore Ravens onsite solar project Constellation

Baltimore Ravens greenlight onsite solar project

Constellation, a retail energy supplier, and the Baltimore Ravens today announced an agreemen...
SCE claims $7.5bn in damages for SONGS from MHI

SCE claims $7.57B in damages for SONGS

Southern California Edison (SCE) and Edison Material Supply LLC (EMS) claimed damages of $7.5...
Plainfield Renewable Energy Plant biomass

Sale of Connecticut biomass power plant completed

Greenleaf Power finalized the purchase of the Plainfield Renewable Energy Plant in Connecticu...
USACE approves bearings for hydropower turbine wicket gates

Corps of Engineers approves GGB bearings for hydropower turbines

The U.S. Army Corps of Engineers (USACE) has approved GGB Bearing Technology’s new HPMB™ fila...
Demand response system picked for Hydro Ottawa utility

Demand response system picked for Canadian utility

Hydro Ottawa picked Opower (NYSE: OPWR) to develop a demand response solution in collaboratio...

Power Engineering Current Issue

Volume 118, Issue 3
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.

Archived Articles

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

Buyers Guide Product Listings

Dry Sorbent Injection

Clyde Bergemann has developed sorbent-based tec...

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 >>