Fuel Management
Fuel Management
Fuel Management
The Power Generation companies World over operate in a complex environment of fluctuating
fuel prices and revenues determined through variable tariff determination methods.
Among the various types of power plants in operation in the world viz. hydro, thermal, nuclear,
renewable and geothermal – the thermal power plants constitute the largest category.
Furthermore, coal as a fuel source is responsible for nearly 42% of world’s electricity generation
[1]. The fuel cost is the single largest component of the cost of electricity produced in thermal
power plants. In countries like India the fuel cost in such plants is more than 65% of total annual
expenditure (for NTPC, the figure stands at 77% [2]) of the plants.
Fuel procurement, logistics and eventual delivery are prone to numerous uncertainties, forcing
companies to pile up fuel inventory - typically around ten days of operational requirement. The
capital locked up in carrying such huge inventory is substantial, around USD 1 million for a 2X
500 MW plant. This is because the loss on account of plant outage due to non-availability of fuel
can be as much as USD 10 million for the same 10 day period [3].
Since the set of activities that comprise fuel management in these companies viz. planning,
contracting, procurement, logistics, delivery and fuel accounting are managed in a disparate
manner with multiple teams and associated systems, inefficiencies creep in. The need is to
integrate the entire set of these activities from planning to accounting, with appropriate
automation to ensure maintenance of the right size of fuel inventory and uninterrupted power
generation. This means that the information systems and models that manage these disparate
functions need to be integrated. Such integration should provide companies the complete
information necessary for inventory right sizing and uninterrupted plant operation resulting
ultimately in improved profitability. The paper intends to explain the issues in managing the
portfolio of activities constituting fuel management and an overview of the systems used to
manage these activities. The paper then proceeds to suggesting an approach to integrating the
activities and how useful improvements can be brought into the fuel management process
through integration of managing systems.
Business Challenge
Power generation companies, including those that operate thermal power plants, are typically not
vertically integrated. They source their requirements for fuels such as coal/oil/gas from fuel
companies and sign transportation and liaison agreements to ensure delivery of fuel to the power
plants. The nature of the fuel sourcing business demands scouting for the right contracts by
planning well in advance. This requires accurate demand forecasting abilities by the power
plants. Inaccurate forecasting might result either in plant outage on account of lack of fuel or
capital locked up on account of higher fuel inventories.
Although, the power plants are typically located closer to the mines/gas terminals, which need
not always be the case. Most plants rely on transportation services to deliver fuel from their
sources to the power plants. The transportation mode can be rail/ road/ ferry or pipelines in case
of gaseous/liquid fuel. The infrastructure needed for overhaul of fuel from source to plants is vast
(in terms of coaches/vessels/ carriages). Hence transportation contracts too are long term. Also,
ensuring that the fuel is of the right quality requires the help of liaison and sampling agents
interacting with the fuel and transportation contractors on the power company’s behalf.
Finally on the receipt of fuel at the plant, the power plant verifies the consignment against the
stipulations of the fuel and transportation contracts.
Inventory management of fuel at the power stations involves accounting the fuel received,
consumed and blended (at some plants only) of various categories. Precise accounting is crucial
for optimal fuel burning and delivering the correct amount of power as demanded by the
consumer.
In many plants around the World, the current state of automation and systems is such that the
power plants have difficulty in forecasting accurate fuel requirements and placing contracts for
optimum quantity of fuel well in advance. They find themselves lacking in systems that enable
tracking fuel in transit and right-sizing fuel inventory at plants. A high level view of the
requirements, orders, consignments in transit and inventory management indicators are rarely
available in near-real time.
Disparate Systems for Fuel Management with Missing Functionalities (like Logistics Tracking)
Demand Forecasting
Contracts Management
Inventory Management
Ash Handling
The challenge therefore is to effectively manage the single highest contributor to the production
cost, i.e. fuel, by gaining useful insight of the various processes in fuel management. Companies
that are able to do this can reduce wasteful expenses and production losses and boost
profitability.
The Way Forward
The high level view of the integrated fuel management solution consists of a package of
modules.
1. Past Consumption.
2. Major Efficiency changes effected in the plants.
3. Meteorological Data of the plant site.
4. Expected Shutdown duration.
5. Demand side imbalance.
Contract Management
1. Listing major fuel suppliers along with their capacity and pricing details.
2. Distributing requirements through orders among suppliers identified for the supply
period.
Logistics and Supporting Processes
Traditional IT, including storage systems, aren’t poised to fulfil customer's future needs
and demands. The unprecedented growth of data (almost doubling every year) has added
to new challenges. The unmet needs of businesses along with increasing operating costs,
have led to innovation, new architectures and new products culminating into adoption
and growth of Software Defined Storage. While some of the business goals are met with
SDS - lower TCO along with agility and flexibility is achieved - new challenges and
issues have surfaced. Both, the large established vendors and umpteen number of start-
ups, offering software defined storage in a wide variety, lead to multiple new challenges
around interoperability, storage management, reporting, fragmentation leading to higher
TCO, etc.
Software Defined Storage is a new paradigm and requires efforts on integration,
manageability and validation of what works and what doesn't in customer data centers.
This also requires a new set of tools, technologies and skill sets. This provides an unique
opportunity to System Integrators (SI) who are well placed to bring all the benefits of
Software Defined Storage, overcoming the challenges, using their home grown adoption
methods, tools and technology expertise.
The information available will be in near real time particularly on the transit status of fuel
consignments to the management. The status of fuel contracts on account of utilization, due for
renewal and the SLA adherence in all contracts will be readily viewable. The status of fuel
inventory available in each of the plant sites will be available in near real time including details
of fuel stock in yards and the latest update on quantity of fuel consumed.
For coal-powered plants, a direct view on the quantity of fuel burnt to quantity of ash generated,
and how much of the ash has been commercially utilized will be available.
The information of each of the modules will serve as inputs to the other modules, thus enabling
an integrated view of the entire fuel management process in the company. Relevant KPI of each
of the sub-process shall be defined to measure the performance of the company in each
functional area.
Benefits:
In the absence of an integrated system for the end-to-end fuel management process, the systems
landscape consists of independent systems for demand forecasting, whose result may not be
available to contracting systems used for fuel procurement. Procurement systems may not
contain all the supplier options available for various fuels and timelines. Consignment system
monitoring is rarely integrated to other systems of monitoring. Similarly, fuel handling and
inventory management systems do not have key data mapped to MIS used by senior executives.
In case of Thermal Plants, Ash Utilization can be completely independent of other systems,
preventing any benchmarking and monitoring activities by the management on the ash generated
and utilized beneficially.
An integrated system for fuel management would enable
Accurate and reliable data from one stage of the process to be used as input in the other
stages. Such integration helps define views and KPI that draw on data from each of the
individual processes for tracking by the management.
The situation on ground, in the absence of such systems, results in companies having
poor visibility into the actual stock of fuel lying in the stock yards, thus leading to
improper fuel planning and procurement.
Timely action in contracts management is also facilitated as the status of utilization of
these contracts becomes well known.
Prescriptive steps due to logistic issues can also be addressed efficiently at the planning
level itself with availability of such information to all the keys stakeholders.
Regulatory and compliance reporting can be automated for all such reports related to fuel
processes since all the information needed are integrated in one system.
Conclusion:
An integrated fuel management system is a need that is strongly felt by many thermal p ower
companies around the world. There is a challenge in the integration of disparate real-time and
transactional systems, and plant automation systems. However, a system that can successfully
integrate the processes and provide a consolidated view of the complete process will provide
great business value to the power generation companies.
Appendix 1: Technical Details
The schematic of the high level technical solution is shown below:
The individual modules of the package draw information from other independent systems to
provide an integrated system for Fuel Management [4].
Thermal Power Plant Fuel Intelligent Control Solution
Intelligent control of fuel is a very important construction module in the
construction of intelligent power plant. The online detection of coal quality is
the top priority in achieving intelligent control of fuels.
The whole process of fuel management is the key link of intelligent fuel
management. Through the integrated use of intelligent equipment, modern
information technology and scientific and technological means, the fuel
management of all aspects of equipment linked together to achieve the entire
process of automation and information; It realizes seamless connection,
unattended operation of management links, automatic generation of
management data, real-time network transmission, real-time monitoring of the
whole work process, and improvement of fuel management efficiency. The
functional requirements of smart power plants should include features such as
digitization, information, visualization, and intelligence. Smart power plants
widely use modern information processing and communication technologies,
intelligent measurement and control technologies to maximize the safety,
economy, efficiency, and environmental protection of power plants. Smart
power plants are the goal of further development of digital power plants
combined with intelligent systems.
Gasification, DICE, and direct carbon fuel cells for power, fuels, and chemicals
production from low rank coals
Daniel G. Roberts, ... Sankar Bhattacharya, in Low-Rank Coals for Power Generation, Fuel and
Chemical Production, 2017
9.4.3 Technology challenges and R&D needs
The CFCs offer many advantages over conventional coal-fired thermal power plants which
include high efficiency, less CO2 and pollutant emissions, and easy capture of CO2 in
concentrated stream and no water management requirements. Although indirect CFCs, where
coals are externally cleaned and reformed to produce CO or syngas, have reached a high level of
technology maturity partly due to the large effort that has gone into the development of molten
carbonate and SOFC, the DCFCs are still at an early stage of development [15,16,22] with a
number of unresolved technical challenges. There are many different types of CFCs, each with
its own set of technical challenges. Most of the early R&D effort on molten hydroxide and
molten carbonate electrolyte based DCFCs has decreased substantially due to low power
densities and corrosion/degradation issues [15,16,22]. The major global R&D effort since about
2000 is on CFCs which employ a solid oxide electrolyte. However, one of the key challenge is
the continuous supply of solid fuel to the anode/electrolyte interface through the pore structure of
the anode.
A number of strategies proposed include the use of a molten carbonate or a molten metal mixed
with fine carbon particles to deliver solid fuel to the electrochemically active reaction sites or use
of a mixed ion/electron conducting anode to shift carbon electrochemical oxidation reaction from
anode/electrolyte interface to anode/fuel interface [15–19,23]. However, these systems suffer
from overall system complications and serious corrosion of fuel cell components (reaction of
molten carbonates with solid oxide electrolyte) or decomposition of mixed ionic/electron
conducting materials in reducing environments in fuel compartment. Thus robust materials and
strategies are required to overcome corrosion and degradation issues. Further, optimum
continuous fuel feed mechanisms need to be developed for continuous generation of power.
Operation of the fuel cell in a batch type fuel delivery mode is more like a battery. Coal
preparation to remove volatiles and ash (present in widely varying compositions and physical
properties depending on its location) before coal can be fed in a solid or molten delivery system
is another challenge along with understanding of carbon conversion and utilization [16,22]. None
of the DCFCs have been up-scaled to practical levels (kW or above) and life times of only few
hundred hours have been demonstrated, significantly further away from real life times of multi
10,000 hours required for practical devices. At the current level of investment, which is very low
and mostly at academic level, compared to other fuel cell types or advanced coal-fired power
plants, it will take a long time before DCFCs are likely to be commercialized.
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Fig. 4.6. Influence of pressure and distance on maximum solids loading ratio for high-pressure conveying systems
It will be seen from this that over a distance of only 1 km, even with a high air supply pressure,
the capability for low-velocity dense phase conveying is remote, for the values of solids loading
ratio that are possible are not appropriate for low-velocity conveying. The situation can be
recovered to a certain extent with an increase in air supply pressure and a well-designed stepped
pipeline.
The situation with regard to short-distance conveying, which is appropriate for the conveying of
the fly ash from the very large number of ash collection hoppers to intermediate storage, is
illustrated in Fig. 4.7. Low values of air supply pressure have been considered here as the
distances are generally short, but vacuum conveying has also been included as this is clearly
appropriate for this conveying duty. It will also be seen that with the relatively high values of
solids loading ratio low-velocity dense phase conveying is a distinct possibility, even with
vacuum-conveying systems, as considered earlier with the ship off-loading of cement.
Fig. 4.7. Influence of pressure and distance on maximum solids loading ratio for low-pressure systems
It should be pointed out that both Figs. 4.6 and 4.7 relate to single-bore pipeline performance.
For a well-designed stepped pipeline, a doubling in material flow rate for a given air supply
pressure and initial pipeline bore can be expected compared with a corresponding single-bore
pipeline, as mentioned earlier. Values of solids loading ratios, therefore, could be expected to be
about double those shown earlier.
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Air Pollution
Nicholas P. Cheremisinoff, in Clean Electricity Through Advanced Coal Technologies, 2012
1.1 Overview
Nearly 50% of the electricity generated in the world uses coal as the primary fuel. The function
of the coal-fired thermal power plant is to convert the energy available in the coal to electricity.
Coal power plants work by using several steps to convert stored energy in coal to usable
electricity. The conversion from coal to electricity takes place in three stages.
Stage 1 involves the conversion of energy in a boiler. Coal is burned in the boiler furnace
to produce heat. Carbon in the coal and oxygen in the air combine to produce carbon
dioxide and heat.
Stage 2 is a thermodynamic process. The heat from combustion of the coal boils water in
the boiler to produce steam. In a modern power plant, boilers produce steam at high
pressures and temperatures. The steam is then piped to a turbine. The high-pressure steam
impinges and expands across a number of sets of blades in the turbine. The impulse and
the thrust created rotate the turbine. The steam is then condensed and pumped back into
the boiler to repeat the cycle.
In Stage 3 rotation of the turbine rotates the generator rotor to produce electricity based
on Faraday’s Principle of electromagnetic induction.
In practice, to effect these three stages of conversion, many systems and subsystems have to be
in service. Also involved are different technologies, such as combustion, aerodynamics, heat
transfer, thermodynamics, pollution control, and logistics. As an example, consider the
following: for a coal-fired power plant of capacity 500 MW, about 2 million tons of coal are
needed each year to produce the continuous power. Also, coal combustion in the boiler requires
roughly 1.6 million cubic meters (m3) of air in an hour to be delivered by fans into the furnace.
For this same size plant, the ash generated from the combustion of coal is around 200,000 tons
per year. Electrostatic precipitators (ESPs) capture most of this ash without dispersing it to the
atmosphere. Pollutants from coal power plants include carbon dioxide, sulfur dioxide, nitrogen
oxide, and particulate matter (PM). Thermal power plants are the largest producers of carbon
dioxide.
The boiler for typical 500 megawatt (MW) units produces around 1,600 tons per hour of steam at
a temperature of 540–600°C. The steam pressure is in the range of 200 bar. The boiler materials
are designed to withstand these conditions with special consideration for operational safety. Heat
transfer from the hot combustion gases to the water in the boiler takes place due to radiation and
convection. The electrical generators carry large electric currents that produce heat and are
cooled by hydrogen and water. The steam leaving the turbine is condensed, and the water is
pumped back for reuse in the boiler. To condense all the steam requires around 50,000 cubic
meters per hour of cooling water to be circulated from lakes, rivers, or the sea. The water is
returned to the source with only an increase of 3–4°C to minimize negative impacts to the
environment. In addition to the cooling water, the power plant also requires around 400 cubic
meters per day of fresh water for making up the losses in the water–steam cycle.
Electricity has often been characterized as the foundation of advanced countries and societies. It
unquestionably is the basis by which societies maintain human life and sustain and grow
economies. But the dependence on coal-fired technologies is a dirty business that has global
implications on long-term sustainability. In the United States alone, there are more than 440
power plants larger than 25 MWs located in 46 states and Puerto Rico that burn coal to generate
electricity. The National Emissions Inventory shows that 84 of the 187 hazardous air
pollutants (HAPs) identified by the U.S. Environmental Protection Agency (EPA) pose a threat
to human health and the environment. These plants release about 386,000 tons of hazardous air
pollutants annually, accounting for roughly 40% of all hazardous air pollutant emissions from
point sources. In fact, coal-burning power plants release more hazardous air pollutants than any
other point source category. These plants are the largest point source category of hydrochloric
acid, mercury, and arsenic releases to air.1 Additionally, coal-fired plants are major sources of
emissions for criteria air pollutants (CAPs) such as sulfur dioxide, oxides of nitrogen, and
particulate matter.
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Hydro Power
T. Hino, in Comprehensive Renewable Energy, 2012
6.10.4.1.3(i)(b) Storage of electricity
Because electricity demand changes daily, weekly, and seasonally, it is convenient to utilize the
cheaply available electricity generated by nuclear and coal-fired thermal power plants (whose
variable costs are low) during the low-demand hours such as midnights and weekends to operate
pumped-storage power plants, so that low-cost electricity can be stored in the form of water in
upper adjustment reservoirs, and it can be used as a generator during peak load hours of
weekdays to reduce the overall electricity supply cost, saving the use of power sources that are
higher cost in terms of fuel costs (such as oil-fired thermal power plants).
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As part of the planning, Hitachi realized for Korea Western Power Co., Ltd. (KOWEPO)
2 × 1050 MW-class ultra-supercritical∗ (USC) coal-fired plants (593°C/24.1 MPa) at the Taean
Thermal Power Plant (Fig. 23.11): the No. 9 unit is scheduled to begin commercial operations in
June 2016, followed by the No. 10 unit in December 2016.
Figure 23.11. Installation plan at the Taean thermal power plant [23].
Fig. 23.12 shows the regional changes of installed capacity of power plants of South Korea for
coal power plants for the period 2010–27. The left side of each figure shows regional distribution
of current power plants in 2010, while the right side shows the projection of power plants by the
sixth BPE in 2027 (unit: MW).
Figure 23.12. The regional changes of installed capacity of coal power plants of South Korea [24].
Regarding the A-USC, Doosan Group is involved with its subsidiary in the European Union in
some R&D program, and therefore it is expected that a national program will be also launched in
the next future.
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Case Study
P. Casero, ... N. Hervás, in Integrated Gasification Combined Cycle (IGCC) Technologies, 2017
20.4.1 Learning during commissioning phase and learning curve
ELCOGAS’ operating experience can be synthesized in the following groups:
1.
Radioactive materials
K. Kovler, in Toxicity of Building Materials, 2012
8.7.3 Building products containing coal fly ash
The building industry uses large amounts of by-products from other industries. In recent years
there is a growing tendency to use new recycled materials with technologically enhanced levels
of radioactivity. Coal fly ash is one of the best known examples.
Large quantities of coal fly ash are expelled from coal-fired thermal power plants and these may
contain enhanced levels of radionuclides along with other toxic elements. More than 280 Mt of
coal ash (fly ash and bottom ash combined) are produced annually. About 40 Mt of these are
used in the production of bricks and cement (IAEA, 2003). Since most of the process residues
further processed into building materials do not meet the required technical specifications, they
are typically mixed with pristine raw materials. The net effect is a dilution of the NORM
(naturally occurring radioactive material) content relative to the process residues.
Recycling and utilization of coal fly ash (FA) in concrete construction has clear environmental,
technological and economic advantages. Fly ash, a by-product of coal combustion, is widely
used as a cementitious and pozzolanic ingredient in Portland-cement concrete. It may be
introduced either as a separately batched material, or as a component of blended cement. The use
of coal fly ash in concrete construction is increasing because it often results in lower-cost
concrete and improves some properties of concrete. Among the positive technological effects are
workability improvement, bleeding reduction, lowering heat of hydration, refinement of pore
structure and decrease of permeability. The continued pozzolanic activity of fly ash contributes
to increased strength gain at later ages if the concrete is kept moist.
The use of coal fly ash in concrete is a well-recognized source of gamma exposure that is due to
the presence of activity concentrations of 226Ra, 232Th and, to a lesser extent, 40 K, while the
effect of coal fly ash via radon exhalation is controversial, in particular due to the low emanation
coefficient from the ash (Kovler et al., 2004b). This effect will be discussed in a following
section. Most of the coal fly ash is reused by cement or concrete producers. Concrete is the most
popular building material in the world: annual production of concrete is about 1 m3 per capita.
The radionuclide composition of concrete depends on its constituents: cement, aggregates and
mineral additives, and their dosages.
As can be seen from Table 8.4, radioactivity concentrations found in ordinary concrete are rather
close to the worldwide average concentrations of radium, thorium and potassium in the earth’s
crust, which are about 40 Bq kg− 1, 40 Bq kg− 1 and 400 Bq kg− 1, respectively, and lower than the
values found in the most common building materials and industrial byproducts used for
construction.
Concrete aggregate consisting of crushed stone often has the greatest significance for the total
radioactivity of the material, because its total mass content is usually the highest among concrete
constituents. If radium-rich and thorium-rich granites are included as aggregates in concrete, the
indoor gamma radiation from the walls and floors may be appreciably higher than the average
outdoors. In buildings with walls and floors made of concrete containing aggregate of granite or
basic gneiss origin with high contents of 238U, the indoor gamma radiation level can reach
0.3 μSv h− 1. Such radiation levels also occur in Swedish buildings with walls of certain types of
bricks made of glacial clays with enhanced 238U and 232Th concentrations (The Radiation
Protection Authorities in Denmark, Finland, Iceland, Norway and Sweden, 2000).
The highest radium contents, from 42 to 62 Bq kg− 1, have been measured in Finnish concrete
(Mustonen, 1984). The measured mean rates of radon exhalation rate (E) were 20 to
32 Bq m− 2 h− 1. The corresponding airborne radon concentration was 46.2 Bq m− 3 with a mean
air exchange rate of 0.64 h− 1 when calculated for radon exhalation rate of 20 Bq m− 2 h− 1. The
enhanced radium concentrations can be explained by the fact that granite aggregates are popular
in Finland.
Commonly used aggregates manufactured from natural stone of sedimentary origin (such as
limestone or dolomite) do not normally enhance the radionuclide content of concrete mix.
However, some mineral additives, such as blast furnace slag or ash (either coal fly ash, or peat
ash, which is often used in Finland, or oil shale ash), although not introduced in high dosages,
can cause enhanced activity concentrations of concrete. Phosphogypsum, when used as
a set retarder in cement in small amounts not exceeding 4–5% by cement mass, usually has
almost no influence on the 226Ra activity concentration of concrete, because the mass fraction
of phosphogypsum in concrete does not exceed even 1%.
As an example, let us consider typical concrete compositions, with and without coal fly ash,
which can be introduced into the mix as a partial replacement for cement and fine aggregates
(sand). Activity concentrations of coal fly ash, which has been subject to a kind of enrichment as
a result of the coal combustion process in the thermal power plant, are usually higher than of
those of cement and aggregates, which can be seen from Table 8.6.
Table 8.6. Example of mix design for concrete with and without fly ash (kg m ), typical activity concentrations of Ra, Th and K and
3 226 232 40
Similarly to coal fly ash, some other materials, like blast furnace slag and peat ash (the latter has
been widely used in Finland instead of coal fly ash), can be used as an aggregate material
replacing virgin natural stone aggregate, or as an additive in cement manufacturing. These
industrial byproducts may cause also enhanced concentrations of natural radionuclides.
In general, the tendency to reuse industrial by-products and wastes as raw materials in
construction is growing, for both economic and environmental reasons.