Loading...
HomeMy WebLinkAboutVol3 Appendix BDonlin Creek Mine Power Supply Feasibility Study Nuvista Light & Power, Co. 301 Calista Ct. Anchorage, AK 99518-2038 Volume 3 Appendix B Final Report June 11, 2004 Bettine, LLC 1120 E. Huffman Rd. Pmb 343 Anchorage, AK 99501 907-336-2335 MODULAR POWER GENERATION PLANT FEASIBILITY STUDY BETHEL & CROOKED CREEK ALASKA FOR NUVISTA LIGHT & POWER, CO. June 30, 2003 Prepared By: Precision Energy Services, Inc. Project Development Division P.O. Box 1004 • Hayden, Idaho 83835 (208) 772-4457 www.pes-world.com TABLE OF CONTENTS I. INTRODUCTION............................................................................................................. 1 II. DEFINITIONS.................................................................................................................. 2 II. DEFINITIONS.................................................................................................................. 3 III. PROJECT SPECIFICATIONS....................................................................................... 4 V. FUEL SELECTION.......................................................................................................... 9 VI. DESCRIPTION OF THE POWER PLANT................................................................ 12 VII. RELIABILITY AND AVAILABILITY STUDY......................................................... 44 VIII. COST SUMMARY ......................................................................................................... 55 IX. OPERATION AND MAINTENANCE......................................................................... 60 ATTACHMENTS: 1. Schedule 2. General Contractor 3. Drawings 4. Photos 5. Maintenance & Repair Shops 6. Alstom 7. GE 8. Diesel 9. Conceptual Design Report 10. Fuels 1 I. INTRODUCTION This report is part of a feasibility study prepared by Bettine LLC for Nuvista Light& Power, Co. for the development of a Power Plant for the supply of electric power to the Placer Dome’s Donlin Gold Mine Site and to the City of Bethel, Alaska and regional villages. The study evaluates two sites for the location of the Power Plant, one at Bethel and one at Crooked Creek. The positive and negative aspects of each location are being evaluated. In addition to evaluating power generation, the feasibility of providing district heating to the residents of Bethel, local institutions (schools, community college, hospital, local prison) and local businesses, is being evaluated. The goal of this report is to provide the project developers with sufficient information including specific recommendations to identify the most reliable and feasible, long-term power production options, which would result in generating electric and thermal energy at competitive pricing as well as facilitate reduction of State payments in the framework of the Power Cost Equalization Program. Permitting standards and expected performance related to the operation of the Power Plant have been included to make the developer aware of the possible requirements. The proposed Power Plant is termed “Modular” to reflect the design of the plant allowing a significant degree of its transportability. In the Feasibility Study, two technologies for power generation are assessed: - Generation of power by combined cycle with combustion turbines and cogeneration in a heat recovery steam generator and steam turbine generator. - Power generation by diesel engines. The costing information provided herein is based on actual cost proposals provided by five companies – two being suppliers of combined cycle (GE and Alstom) and three suppliers of diesel generation sets (MAN B&W, Wartsilla and RUMO). Following initial evaluation, it was decided to exclude from further assessment the Russian-made engines. These engines are of the same design as MAN (license), the price difference is practically non-existent and the manufacturer has no servicing capabilities in North America. Information and qualifications are included in the Appendix Vendor Data. This report includes one section which evaluates applicable fuels from various points of view such as properties (heating value, sulfur content, etc.) and cost determined in dollars per million Btu. Fuel properties impact both the capital cost (for example, whether or not a flue gas de-sulfurization system is needed) and the operating cost. Pertaining to the plant located in Bethel, the evaluations also include the supply of heat energy to a district heating system in the City of Bethel. The study does not evaluate the feasibility of the application of district heating for specific or individual recipients of thermal energy. Included, however, is sufficient information to conduct such evaluations for most of the potential customers of the district heating system. The Application of heat pumps was considered for recovering low temperature latent heat of steam condensation in the steam cycle. The conclusion of the evaluation was that the cost of this recovery exceeds the possible savings. The Power Plant specifications are provided at the beginning of the study. Definitions of the terms used in the report are included. The two locations are shown on the following map. 2 Figure 1 Bethel & Crooked Creek Crooked Creek Bethel 3 II. DEFINITIONS CHP Cogeneration Heat Plant CT Combustion Turbine CTG Combustion Turbine and Generator set ASL Elevation Above Sea Level DH District Heating Gpm or gpm US Gallon Per Minute HRSG Heat Recovery Steam Generator MPP Modular Power Plant MWe Mega Watt electric PM Prime Mover STG Steam turbine and Generator set MM Btu Million Btu SCR Selective Catalytic Reduction (of NOx) BOP Balance of plant ACI American Concrete Institute AISC American Institute of Steel Construction ANSI American National Standards Institute ASME American Society of Mechanical Engineers ASME B31.1 Power Piping ASTM American Society for Testing Materials AWS American Welding Society CTI Cooling Tower Institute HEI Heat Exchange Institute HIS Hydraulic Institute Standards IEEE Institute of Electrical & Electronic Engineers ISA Instrument Society of America NEC National Electric Code NFPA National Fire Protection Agency NFPC National Fire Protection Code OSHA Occupation Safety & Health Act TEMA Tubular Exchangers Manufacturer’s Association UBC Uniform Building Code UMC Uniform Mechanical Code UPC Uniform Plumbing Code UL Underwriters Laboratory – industrial insurance company FM Factory Mutual – industrial insurance company 4 III. PROJECT SPECIFICATIONS A. Requirement Specifications Plant location Units Bethel Crooked Creek Required electric power supply at Donlin Mine MWe 70.0 70.0 Transmission line losses MWe 5.0 0.5 Local usage (Bethel, villages) MWe 12.8 1.0 Parasitic power (Power Plant use) MWe 2.3 2.3 Required electric power output, net at transformer MWe 90.1 73.8 Thermal energy supply to the District Heating (DH) system Yearly average heat supply million Btu/hr 134 1.6 Average winter supply million Btu/hr 177 2.2 Maximum winter supply million Btu/hr 230 3.0 Utility water for consumption lb/hr 161,200 2,000 Gpm 322 4.0 Assumed that all utility water is consumed, 0 return. Heating water 20% losses, 80% return. The DH system will use hot water as the energy carrier: o Water temperature, outgoing ºF 170 – 175 o Return ºF 125 – 130 o Water pressure, out psig 100 o Return, design psig 20 Heating of the hot water will be achieved primarily by utilization of waste heat including latent heat of condensation of the steam cycle. B. Local Conditions Power Plant location Bethel Crooked Creek Elevation above sea level ft ASL 100 200 Temperatures – see graph on the following page Average humidity range: 60% (summer) to 85% (winter) 5 The Crooked Creek site is 135 miles inland from Bethel in the N-E direction. The weather there will be slightly more of the continental type with colder winters. The elevation of the plant above sea level at Crooked Creek is 200 feet. At the time of preparation, there was no specific information relating to the weather conditions at Crooked Creek. Figure 2 Average Temperatures C. Other Design Requirements The Power Plant will be modularized to the highest possible degree, such that it can be shipped in major assemblies minimizing field installation work. Primary Fuel – see Fuel Specifications Summary and in Appendix Fuel Data. Diesel Fuel DF2 or Fuel Oil No. 2 at LHV 18,421 Btu/lb and pour point not higher than minus 15oF. Job Conditions: ƒ Electrical 460 V, 4160 V, 3 Φ, 60 Hz Equipment Location Indoors ƒ Insurance Codes/Requirements UL, FM, NFPA 6 D. Emission Standards The most likely standards that the Modular Power Plant will have to comply with are: SO2 500 ppm molar fraction Remark: To comply with this standard, the sulfur content in the fuel should not exceed 0.5% by weight. CO There is no State standard for CO emissions from liquid fuel fired power generation equipment; however, exceeding 100 tons per year may trigger the requirement for a New Source Review and the setting of a performance standard for the plant. NOx The State of Alaska does not have a standard for NOx; however, the standard to be used here will most likely be 0.15 lb/million Btu or 95 ppm vol. at 15% O2. PM The standard for particulate matter (PM) is 0.10 grain per cubic foot at standard conditions (= 0.22 lb/MM Btu) averaged over 3 hours. The values for expected standards were obtained from the Alaska Department of Environmental Conservation as guidelines for plant design. The actual performance requirements will be determined based on application for the Permit to Construct and Permit to Operate. 7 IV. DESIGN PHILOSOPHY The Power Plant design is based on the capability to erect the plant in a short time with little site preparation and, if required to move the plant easily to a different location with little financial burden. Because of this, the Study evaluates locating the plant at two sites (see map in Figure 1): ƒ City of Bethel ƒ Crooked Creek The requirement for modularity has limited the selection of the power generating technology. The field was limited practically to two technologies that are capable of delivering the required electric power and of being almost 100% reliable. The technologies are: ƒ Generation of power in the combined cycle with combustion turbines and heat recovery steam generator with steam turbine and generator. ƒ Power generation in diesel engines. Since in plants of this type the cost of fuel constitutes the greatest parts of the total operating cost including debt service and return on investment (up to 85%), fuel economy became the most important guidance for the design philosophy. As a result, combined cycle or other type of waste heat recovery is being evaluated herein. The MPP will not include large buildings enclosing the entire plant or parts thereof; rather it will have systems enclosed, as much as possible in modular structures. Control room(s), office and space for personnel needs (locker rooms, sanitary facilities, ect.) will also be provided in modular units. The location of the MPP also has a major impact on the plant size and required facilities. As shown in the Specifications, the plant located in Crooked Creek would supply about 14.5 MW less electric power. The plant will not have to supply thermal energy for district heating; only a small amount for oil tank heating. Supplying thermal energy for the Crooked Creek village will be marginal. The Bethel location presents more energy requirements, both in power and thermal energy. The fuel cost is lower by about 15% than that in Crooked Creek because it does not include the cost of barging to Crooked Creek. The City has a commercial airport and the additional infrastructure is provided by the City. Crooked Creek requires less capital investment due to lower power and thermal energy demand, however, due to its remoteness, it is inaccessible during the winter and early spring season, which may impact the cost of maintenance and the reliability of the system. 8 V. FUEL SELECTION A. Comparison of Various Fuels Table 1 summarizes the evaluation of various applicable fuels for the MPP. All of the listed fuels can be used for firing in combustion turbines. All fuels except Naphtha can be used to fire diesel engines. The list was put together as a result of evaluating various fuels. Some fuels with prices significantly above the indicated range were not included. Table 1 (Prices as of Jan 30th, 2003) Fuel cost per MM Btu gross All Btu/lb or gallon values are NET Btu/lb Btu/gal LHV lb / gal $ / gal at refinery$/MM Btu excl. shipping $ / gal incl shipping to Bethel $/MM Btu in Bethel $ / gal incl. shipping to CC $/MM Btu including shipping to CC Diesel Fuel No. 2 (TESORO) 18,421130,236 7.07 0.85 6.53 1.04 7.99 1.25 9.60 Diesel Fuel No. 1 gross 18,561125,101 6.74 0.90 7.19 1.09 8.71 1.30 10.39 Pour 40 Heating Oil (DF1 75%, DF2 25%) 18,461126,679 6.86 0.87 6.87 1.06 8.37 1.27 10.03 Jet B 17,931 112,9296.30 0.88 7.79 1.07 9.47 1.28 11.33 # 2 DIESEL FUEL (WILLIAMS ALASKA) 18,380 131,3997.15 0.87 6.58 1.06 8.03 1.265 9.63 JP-4 17,973113,194 6.30 0.87 7.69 1.06 9.36 1.27 11.22 Naphtha 19,743 120,2776.09 0.82 6.82 1.01 8.40 1.22 10.14 Heating fuel Product Nr. 43 18,194 126,6306.96 0.86 6.79 1.05 8.29 1.26 9.95 9 Some fuels that seem to be good candidates for the project have not been included due to obvious reasons, such as very low availability and high cost. For example fuel oil No. 4 could be a better fuel, however, its availability in Western Alaska is low, therefore, it is more expensive, expressed in $/MM Btu than DF2 that has a lower heating value. The evaluation presented in Table 1 is reduced to the common denominator of the fuels: delivered cost of 1 million Btu. As indicated in Table 1, Diesel Fuel No. 2 and Fuel Oil No. 2 are the most feasible fuels. In addition to excellent combustion properties (heating value, density, flash point), these fuels have good transport properties (low viscosity). The sulfur content of the fuels is limited to 0.5%; however, the sulfur content of the Tesoro DF2 has usually been in the range of 0.1%. The low percentage of sulfur results in low SO2 concentration in the flue gas; thus, expensive flue gas desulfurization systems (FGD) are not needed. Emissions that are significantly below standard can be used as environmental credits to offset other pollution sources of the company or to trade with other companies. B. Fuel Shipping Transporting the fuel from Cook Inlet or West Coast USA/Canada to Bethel or Crooked Creek requires three steps: Linehaul barge transportation into the Kuskokwim River to Bethel, off-load, temporary storage and transfer of fuel to smaller barges, lighterage in smaller barges from Bethel to Crooked Creek. The shallow nature of the Kuskokwim above Aniak (between Bethel and Crooked Creek) provides the greatest challenge, both physically and financially, to this endeavor. The estimate of delivering, with specialized shallow-draft tugs and barges that can operate between Bethel and Crooked Creek, approximately 32,000,000 gallons to Crooked Creek will cost up to $12,800,000, not including fuel cost. Delivery of the same quantity of fuel to Bethel will cost approximately $6,720,000 less – a large incentive for the Bethel location. There is currently enough ocean barge capacity to cover the offshore leg. Both Yukon Fuel Company and Crowley Marine each operate 10 million gallon tank farms in Bethel, which, with some alterations, could serve as a safety cushion in case of a late start of fuel shipments due to weather conditions or other unforeseeable events and can supply the balance of the required fuel. The price structure of fuel to Crooked Creek is presented in Table 2 The price structure is based on the assumption that Cook Inlet would be the source of most of this product, but there are definitely other options. Depending on world and domestic market conditions, bringing tank ships into Dutch Harbor, discharging their cargo into shore- based storage, or lightering into shallow barges and shuttling the product into the Kuskokwim may be a viable alternative. That scenario may or may not save money. 10 Table 2 Basic Fuel Price (Seattle Low Sulfur Diesel #2) as at 1/22/03 $0.85/gal Linehaul transportation from Cook Inlet to Bethel $0.19/gal Total Estimated Price at Bethel $1.04/gal Bethel storage expenses (seasonal throughput) $0.08/gal Shallow-draft transportation from Bethel to Crooked Creek $0.21/gal Total Estimated Price at Crooked Creek $1.25/gal The $0.08/gallon storage expense is applicable to loads that are intermittently stored at the named company’s facilities. It does not apply to shipments to Crooked Creek. While the marine operations companies believe that it is possible to move the required volume from Bethel to Crooked Creek, the operators are nevertheless nervous about the practicality of fitting all of the additional traffic onto the river. Fuel barges are much more efficient than freight barges because of their lack of need for deck strength and unloading equipment, and further, lend themselves more easily to rafting. The scenarios proposed by Yukon and Crowley assume that they can raft up to four barges per tug. Any freight operation will be hard pressed to handle more than two barges per tug. The fuel shipping operations will be conducted annually between June 1st and September 30th. The project owner may want to consider purchasing barges and tugs. The fuel shipping companies assume that all of the fuel will originate in Cook Inlet. There is a more feasible option to deliver fuel to Dutch Harbor by a tanker and ship in fuel barges to Bethel and/or Crooked Creek. C. Fuel Receiving and Storage System The Fuel Receiving and Storage System includes the following installations: ƒ Fuel barge off-loading dock with a marine header located on the west bank of the Kuskokwim River at Bethel and the north bank of the river at Crooked Creek. The dock design was developed by Peratrovich, Nottingham and Drage, Inc. for the Donlin Creek Mine Late Stage Evaluation Study and proposed by LCMF LLC. ƒ An 8-inch pipeline connecting at the dock site to a marine header and on the other side to a header for filling all tanks at the bulk fuel facility. ƒ Bulk fuel tank farm facilitating storage of approximately 25 million gallons of fuel for Bethel and 22 million gallons at Crooked Creek. This equates to a nine-month supply of fuel at either Bethel or Crooked Creek. A fuel reserve of 3.2 gallons (1 tank) will be created in the first year of fuel shipping. ƒ The tank farm will consist of eight insulated tanks, each 120 feet diameter and 40 feet high with a nominal storage capacity of 3.2 million gallons. The tanks will be heated with waste heat from the heat recovery system of the 11 prime movers to keep the fuel above the specified minimum temperature of 20°F. ƒ One 100,000 gallon insulated intermediate fuel tank located near the prime movers. The tank is heated to the temperature of 70°F to improve fuel handling and injection into the engines of the prime movers. ƒ A transfer pump will deliver the fuel from the bulk fuel tank facility headers to the intermediate storage tank via a 4-inch delivery pipe insulated with removable panels. A standby transfer pump is also included. The fuel tanks will require 121,000 Btu/hr, averaged annually to maintain the minimum internal temperature of 20oF. The intermediate fuel tank will require 7,330 Btu/hr averaged annually to maintain the internal operating temperature of 70oF. The heat will be provided from the heat recovery system of the Power Plant. Specific information relating to tank design and construction is provided in the Report: Site Development, Earthworks Foundations and Bulk Fuel; Conceptual Design Report By LCMF, LLC. 12 VI. DESCRIPTION OF THE POWER PLANT The major systems of the MPP located in Bethel are listed by systems in this Section. The Crooked Creek Power Plant location will include a less number of diesel engines and less fuel storage tankage. The district heating system for the Crooked Creek village, if decided to be developed, will consist only of two heat exchangers and piping to the houses. All drawings are attached at the end of this section. 1. Fuel Receiving and Storage described in Section V 2. Power Generation System described in Section VI B 3. District Heating System described in Section VI B 4. Environment Protection System described in Section VI C 5. Balance of Plant Systems described in Section VI D 6. Drawings of Plant In Section following VI B A. Power Generation System The Power Generation System consists of: 1. Prime Movers – Combustion Turbine or Diesel Engine 2. Heat Recovery Steam Generator System 3. Steam Turbine System 4. Electric Generation System 5. Feedwater and Make-up Water Treatment System 6. Instrumentation and Controls including the DCS System B. Prime Movers As determined in the Section “Design Philosophy”, depending on the plant location, different outputs will be required of the Power Plant: ƒ 90.1 MW electric + up to 230 million Btu/hr thermal energy for the Bethel location ƒ 73.8 MW electric + marginal amount of thermal energy for the Crooked Creek location The prime movers will provide all required power and 180 MM Btu/hr (in Bethel) thermal energy for the district heating system. For extremely cold temperatures (up to 50 MM Btu/hr additional heat demand), the plant with CT will activate firing of the duct burner. The diesel-based plant will have to start up the auxiliary boiler. Based on equipment capabilities, the following alternative arrangements of prime movers has been selected: Table 3 Prime Movers 13 Location: Bethel Nominal PM Output Number Power Prime mover MWe/unit of units Installed Required i. Alstom GTX100 CTG 42 2 84.0 65.6 Stand-by GTX100 42 1 42.0 32.8 ii. GE LM6000 CTG 46.5 2 93.0 90.1 Stand-by LM6000 46.5 1 46.5 45.0 iii. MAN B&W 18V48/60 diesel gen set 18.4 5 82.0 90.1 iv. Stand-by 18.4 2 36.8 18.4* v. Wartsila 18V46/60 diesel gen set 16.5 6 99.0 90.1 vi. Stand-by 16.5 2 33.0 16.5* * Diesel engine stand-by quantities include: one engine hot stand-by (can operate at 100% output within 10 minutes of order) One engine in maintenance/repair Location: Crooked Creek Nominal PM Output Number Power Prime mover MWe/unit of units Installed Required i. Alstom GTX100 CTG 42.0 2 84.0 57.4 Stand-by GTX100 42.0 1 42.0 28.7 ii. GE LM6000 CTG 46.5 2 93.0 65.0 Stand-by LM6000 46.5 1 46.5 46.5 iii. MAN B&W 18V48/60 diesel gen set 18.4 4 92.0 75.6 iv. Stand-by 18.4 2 36.8 18.4* v. Wartsila 18V46/60 diesel gen set 16.5 5 82.5 75.6 vi. Stand-by 16.5 2 33.0 16.5* * See remark above Neither MAN B&W nor Wartsila included heat recovery options. Other companies specializing in heat recovery from diesel engines systems will provide those. Section VI provides a discussion of waste heat recovery options. The Alstom combustion turbine GTX100 shows a flat efficiency curve for loads between 65% and 100%. The turbines will work most of the time in this range. GE’s CTG does not include the flat, horizontal line indicating constant fuel consumption rate at increasing load. Unit fuel consumption of GE’s aeroderivative turbines is strongly dependant on the load practically over the entire range of load. When the power demand decreases to below 60 MWe, only one Alstom or GE CTG + STG set will be operating. Table 4 14 Output of heat recovery system Total Plant output with PM MWe Installed Required i. Alstom 2 CTG, 1 HRSG + 1 STG Bethel 152 MWe 90.1 MWe +1 CTG stand-by Crooked Creek 152 MWe 75.6 MWe In this STG both locations 26 MWe District heating Bethel + 177 MM Btu/hr Crooked Creek + 2.0 MM Btu/hr ii. GE 2 CTG + 1 HRSG + 1 STG Bethel 150 MWe 90.1 MWe +1 CTG stand-by Crooked Creek 150 MWe 75.6 MWe In this STG 10.6 MWe District heating MM Btu/hr Bethel + 177 MM Btu/hr Crooked Creek + 2.0 MM Btu/hr iii. MAN B&W Bethel 118.8 MWe 90.1 MWe Crooked Creek 118.8 MWe 75.6 MWe Heat recovery system Bethel + 125.7 MM Btu/hr (insufficient heat supply) Crooked Creek 2.0 MM Btu/hr iv. Wartsila HRSG Bethel 132.0 MWe 90.1 MWe Crooked Creek 115.5 MWe 75.6 MWe Heat recovery system Bethel + 118.6 MM Btu/hr (insufficient heat supply) Crooked Creek + 2.0 MM Btu/hr C. Comparison of Combustion Turbines with Diesel Engines applied in the Prime Moving duty. Combustion turbines have become a widely accepted technology for producing power, especially when there is a need for small efficient Power Plants working in the combined cycle. Diesel engines have been proven over numerous years and the application to be a reliable source of power in Alaska. Both technologies demonstrate advantages and disadvantages, as outlined below: 1. Combustion Turbine Advantages a. High Efficiency when applied in the combined cycle. The exhaust gas temperature in a combustion turbine is very high, in the range of 900oF to 1100oF, which makes recapturing the heat for cogeneration and production of additional power in a steam turbine relatively easy. In the case of the MPP, where there is need for recovering low temperature heat for tank and space heating, the thermal efficiency depends only on the minimum allowable stack temperature 15 determined by the SO2 content in it. In the MPP a total thermal efficiency of 84% is not only possible but feasible. b. High Reliability – Combustion turbines are well known for their excellent reliability, approaching 100% (see attached charts for the GE LM2500 turbine, Appendix). The reliability of GE’s LM6000 and Alstom’s GTX100 is in the same range. c. Multi-Fuel Capability – Combustion turbines offer the ability to burn various fuels ranging from natural gas to Naphtha and diesel fuel. Relative efficiency remains comparatively consistent for all fuels and only varies with the heating value of the fuels. The multi-fuel capability makes the CT a reliable choice for Alaska, where during certain times some fuels may not be readily available. d. Low Weight – Combustion turbines exhibit low unit mass per MW output, especially when compared with diesel engines. 2. Combustion Turbine Disadvantages: a. Lower Efficiency in the simple cycle as compared to Diesel engines. For a combustion turbine plant to operate at peak efficiency the steam loop must be included and operating. b. Requires well experienced and educated maintenance staff. c. Specialized parts – Combustion turbines require specialized parts, which are only obtainable from the manufacturer. 3. Advantages of Slow Speed Diesel Engines a. High Efficiency – Slow speed diesel engines, operating at 514 RPM offer the best simple cycle thermal efficiency of any technology readily available. This means that even when the heat recovery system is inoperable, the engines can operate with 48% efficiency. This is much higher than the combustion turbines, which have a simple cycle efficiency of 37%. This also leads to lower fuel consumption than combustion turbines in simple cycle. b. Multi Fuel Capability – Slow speed diesels are able to burn every fuel we have investigated except for Naphtha. Again, since fuel availability may change in a remote location like Bethel this is a benefit. 4. Drawbacks of Diesel Engines: 16 a. Weight – The Diesel engines are extremely heavy, which means moving them on and offsite will require very large cranes. The 18 MW diesel engines evaluated in this study (18V46 or 18V48) weigh in excess of 260 tonnes (570,000 lbs) each, or roughly 16 tons of weight per MW of output, which makes moving them difficult. For comparison; a combustion turbine of twice the output weighs less than 40 tonnes or roughly one ton of weight per MW of output. b. Foundation construction cost is closely tied to the weight and vibrations generated by the engines. Due to their low rotational speed in the range of 514 RPM their low frequency vibrations are significantly closer to the natural frequency of the support structures and more likely to cause resonance. The foundations required for the diesels must be highly engineered; they are significantly larger and more complicated than those for CTs. There will also be a need for an increased number of piles to account for the additional weight and vibration loads. c. Lower Combined Cycle Efficiency – In combined cycle with district heating, the thermal efficiency of the diesels is lower than a combined cycle combustion turbine arrangement. This is due to the lower temperature exhaust heat available from the diesels and large losses in the lubricating oil and jacket water cooling systems. With the highest possible degree of waste heat recovery, the thermal efficiency of system with the diesel engine is up to 10% lower than the equivalent thermal efficiency of a combustion turbine applied in the combined cycle. d. Lubrication Oil Needs – Slow speed diesels require massive amounts of lubrication oil to operate. At full load the lubricating oil consumption is 0.8 gram/kWh (0.00176 lb/kWh), which for the Bethel located plant operating at average 80% capacity will amount to 556 tons, over 3500 barrels of lubricating oil per year. e. Maintenance – Diesel engines require more maintenance than combustion turbines. This means that there is more downtime associated with each engine and more staff will be required. f. Diesel engines generate large amounts of NOx – in the range of 940 to over 1000 ppm vol. Even if costly, both in capital and operating cost SCR systems are applied, they cannot sufficiently reduce the NOx performance of the combustion turbines, which is in the range of 35 ppm vol. This performance is guaranteed by both GE and Alstom without an SCR system. 5. Comparison Summary 17 The lower thermal efficiency of the combustion turbine working in the simple cycle, as compared to the diesel engine, is most likely the primary reason why the CTGs have not found as wide a use in Alaska as diesel engines. Experience in other Northern countries, Sweden, Finland, and Iceland, show that combined cycle plants based on CT as prime movers are a viable technology capable of winning the market against diesel engines. Significantly lower weight makes them easier to transport and install at remote sites in Alaska. Both Chugach Electric Association and Anchorage Municipal Light and Power, the two major generating utilities in Alaska, generate their power using combined cycle generation. Experience shows that diesel engines require continuous supervision by mechanics and operators, whereas, combustion turbines can work with only once-a-week supervision. Nevertheless, diesel engine driven Power Plants are the most popular means of generating electricity in the remote locations of Alaska, primarily due to general familiarity with the diesel engine and very high reliability. D. The Power Generation system with CT drive consists of (see block diagram on next page, Figure 3): 1. Three combustion turbine-generator assemblies 2. One dual-pressure-level, heat recovery steam generator with the option of being duct-fired (HRSG) 3. One induction/condensing steam turbine-generator with condenser and cooling tower with saturated steam extraction for the district heating system 4. Advanced distributed control system (DCS) with the capability of operating peripheral balance of plant (BOP) systems. 5. Related ducting and piping including required valves, dampers and actuation equipment Figure 3, Block diagram of the Combustion Turbine – driven Modular Power Plant 18 The combustion turbine-based plant is a 2-on-1 non-reheat combined-cycle Power Plant designed to generate the required electrical power with one train (CT and HRSG) out of service. The normal plant operating configuration will consist of two combustion turbine generators, (CTG), one dual-pressure-level, heat recovery steam generator with the option of being duct-fired (HRSG), one induction/condensing steam turbine-generator (STG). The design fuel is #2 diesel fuel oil (DF2) with the pour point suppressed to –15oF (See attached specifications). All major components are modularized to the maximum extent possible for quick erection and commissioning while still being transportable. For the purposes of further discussions, the Alstom Power Model GTX-100 combustion turbine-generator system will be used. Information on GE LM6000 combustion turbine and auxiliary systems will be provided to stress the differences, advantages and disadvantages. Each combustion turbine will be fitted with a generator driven directly by the turbine’s shaft through a gear reducer. Exhaust gases from each CT are directed via a collector duct to one HRSG for steam generation. The turbine exhaust gases can be discharged via a diverter damper to the atmosphere; this in case the steam turbine cannot receive the full design flow of steam or the STG and/or HRSG require shutting down, for instance for maintenance. Steam generation is as follows: 19 Table 5 The Alstom HRSG with GTX100 will generate HP steam up to 234,000 lb/hr at 1150 psia, 950°F LP steam up to 19,200 lb/hr at 134 psia, 407°F The GE HRSG with LM6000 will generate HP steam up to 205,000 lb/hr at 615 psia, 750°F LP steam Not included In the Alstom proposed system the generated steam is routed to a double steam turbine, which drives generator. The high-pressure steam supplies the HP turbine, and the low- pressure steam supplies the LP turbine. Up to 165,000 lb/hr (in winter) of steam is extracted for district heating. The HRSG has also a supplementary liquid fuel - fired duct burner section, with which the steam output will be increased if the DH demand increases above available. The Power Plant in Bethel is designed with the flexibility to operate in 2 modes: Normal: 2 GTX100 or LM6000 combustion turbine generators + 1 HRSG + 1 Steam turbine generator to achieve nominal output with one stand-by GTX100/LM6000 system. Emergency: When the steam turbine is unavailable due to repair/maintenance all three GTX100/ LM600 machines can operate in simple cycle configuration to achieve the nominal output. In the arrangement for the Crooked Creek location, two GTX100 or LM6000 turbines will provide the required power output. To obtain a high thermal efficiency the system will also include an HRSG and STG, however, the output of the HRSG will be lower due to marginal demand for local heating. At both plant locations, for heating purposes in emergency situation, a stand-by, fuel oil fired boiler will be included. A detailed description of Alstom’s GTX-100 and GE’s LM6000 is provided in the attached literature. Comparison of GTX100 supplied by Alstom Power and LM6000 supplied by GE Power Systems Technical information about the two combustion turbines is provided in the attached Alstom and GE literature. The turbines are comparable in size – the rated Alstom CT output is 42 to 43 MWe, the equivalent output of GE’s LM6000 is 46.5 MWe. The net heat rates in Btu/kWh generated differ somewhat: - GTX100 7,683 Btu/kWh (at LHV), 20 - LM6000 8,323 Btu/kWh (at LHV) The Alstom GTX100 machine has been engineered for the specific purpose: combined cycle power generation. The GE LM6000 machine is aero-derivative which means that the original design objective was an aircraft engine, where the weight and turbine shaft output are the predominant requirements. Ability to work in the combined cycle was not even among the objectives during the design phase. Figure 4 GTX100 Combustion Turbine Efficiency (Heat Rate) as a function of Base Load Percentage At loads 73% and up the efficiency and heat rate remain practically constant. Figure 5 LM6000 Combustion Turbine Heat Rate (Efficiency) as a function of Base Load % 21 PES Alaska Project - LM6000 Performance Heat Rate vs. Power 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 Output, kWBtu/kW-hr, LHVLM6000, Liquid Fuel 45F, 40% RH 500 ft. Elevation Water Injection to 42 ppm NOx As the graphs show, The LM6000 turbine reaches its highest efficiency / lowest heat rate at almost 100% of its output capability, whereas the GTX100 turbine maintains a steady heat rate / efficiency between 73% and 100% nominal capacity. The Alstom machine is built for stationary duty therefore it is heavier than the LM6000. On the other hand, the GTX100’s are more efficient over a wider range of operating loads. Price wise, the LM6000 is about $680,000 ($16,000 / MWe) less expensive than the GTX100. The cost difference on 3 turbines, of $2,040,000 will be paid off by fuel savings within 6 months. Heat rate difference: (8,323 Btu/kWh (LM6000) - 7,683 Btu/kWh (GTX100) = 640 Btu/kWh Work-hours at 99% availability and 80% demand: 24 x 365 x 99% x 80% = 6938 hrs Fuel used on the heat rate difference: (∆ heat rate x hrs) 4.44 million Btu / kWh, year Cost of fuel at $7.99 per million Btu delivered to Bethel $35.48 / kWh, year At 90 MW generation rate (power demand accounted above) $3,193,000 / year Fuel savings pay off period $2,040,000 / $3,193,000 = est. 7 months and 20 days 22 E. The Power Generation system with diesel engine drive consists of: 1. Diesel engines, including stand-by, each driving one generator 2. One intermediate pressure heat recovery steam generator, with the option of being duct-fired, for the district heating system. 3. Advanced distributed control system (DCS) with the capability of operating also peripheral, balance of plant (BOP) systems. 4. Related ducting and piping including required valves, dampers and actuation equipment The diesel-based Power Plant will include a series of engine + generator sets. The number of engines for the Bethel location is five (MAN B&W) or six (Wartsila) and, for the Crooked Creek location, four (MAN B&W) or five (Wartsila). The capacity of a single MAN B&W engine is 18,427 kW (five engines produce 92,135 MW net); the respective number for the Wartsila engine is 16,600 kW. Five Wartsila engines will not supply the required capacity for the Bethel location of 90,100 kW. Because of this, six Wartsila engines are required for base duty. Similarly, for the Crooked Creek location the number of Wartsila engines required for the base duty is higher by one in relation to that of MAN B&W engines (five versus four). To establish the required availability of power from diesel engines, two engines will be added at each location; one as hot stand-by and one as a maintenance unit. To increase the plant’s thermal efficiency a heat recovery steam generator, with or without a steam turbine, may be included. Neither MAN B&W nor Wartsila included heat recovery features in their documentation. Utilization of waste heat is included herein based on PES’ own calculations and evaluations. Remark: Installation of the diesel engines will be a very difficult task. In order to increase the efficiency and reduce cost as well as the requirement for maintenance, 17 to 18 MW engines should be applied. The weight of each engine is in the range of 300 tons. The engines will be supplied assembled. This requires heavy cranage and moving equipment, which might not be available for the project or difficult to operate in the Bethel or Crooked Creek conditions. F. Heat Recovery Options for the Diesel Plant 1. From exhaust gases Approximately 30% of heat supplied with the fuel leaves the engine with the exhaust gases. To obtain the numbers in Table 6 we have assumed that, due to low sulfur content (0.1 – 0.2%) in the fuel, which translate into 100 to 200 ppm volume content in the exhaust, the flue gas temperature can be 235oF (with a 6oF safety margin). This allows larger heat recovery than if the sulfur content was 0.5% in the fuel (see V. Fuel Selection). The steam generated in a highly efficient HRSG can be used for 23 power generation and extraction for district heating, or it can be produced as saturated for district heating purposes only. Four engines (either MAN B&W or Wartsila) represent the case of the Crooked Creek plant location with Wartsila engines working at 88% of power demand (66.4 MWe vs. 75.5 MWe) Table 6 shows that no matter which cogeneration method is chosen to fulfill the requirement for district heating in Bethel, both diesel-based plants will have to include, at average winter conditions, additional firing of 57 MM Btu/hr or 65 MM Btu/hr, respectively. The plant can supply district heating needs only when working at maximum capacity in mild spring or early fall conditions. Table 6 Engine MAN B&W WARTSILA Number of engines 4 5 4 5 6 Heat content in exhaust MM Btu/hr 174.0 217.4 159.6 199.5 239.5 Energy available 1) MM Btu/hr 128.4 160.4 120.9 151.2 181.5 lb/hr 72,580 90,725 63,730 79,660 95,600Possible superheated steam generation 2) MWe generation, extraction at 120 psig MWe 1.57 1.96 1.38 1.72 2.06 Saturated, 120 psig 3) lb/hr 103,480 129,360 92,620 115,780 138,940 1) = Heat content in exhaust – (minus) heat content in flue gas at minimum allowable temperature 275oF. 2) Superheated steam at 350 psig, 550oF 3) Production of saturated steam at 120 psig, if power generation is not required. 2. Heat recovery from lubricating oil and water jacket heat exchangers Heat loss in cooling of lubricating oil and the engine water jacket is typical of diesel engines. The recoverable heat (above 180oF) amounts to a large percentage of the input fuel, 5.9% in the lube oil cooling and 19% in the water cooling system. This amounts to a net loss equivalent to 165.4 MM Btu/hr or 1264 gallons of diesel fuel per hour; or 8.86 million gallon of fuel per year in the plant running at 80% capacity. The heat recovery challenge is related to the relatively low temperature heat energy, which excludes steam production. But this energy can be used for heating or pre- heating district heating circulating water and for local heating needs (tanks or space). After taking into account the heat from lubricating oil and water jacket heat 24 exchangers Table 6 from the above section. From exhaust gases, can be amended as follows: The plant will operate with the basic number of engines all the time, as required by the demand. When one engine goes off line for unplanned repairs, the hot-stand-by unit is put on line within minutes and the maintenance unit is put into hot-stand-by duty, if possible. Table 7 Summary of Heat Recovery Options Engine MAN B&W WARTSILA Number of engines 4 5 4 5 6 Exhaust heat recovery Heat content in exhaust MM Btu/hr 174.0 217.4 159.6 199.5 239.5 Energy available MM Btu/hr 128.4 160.4 120.9 151.2 181.5 Superheated steam generation lb/hr 72,580 90,725 63,730 79,660 95,600 Possible power generation in condensing cycle MWe 7.4 9.3 6.8 8.5 10.2 Available heat from Lube Oil & Jacket Water system to be used for district heating MM Btu/hr 89.9 112.3 89.9 112.3 134.8 Heat required for DH average MM Btu/hr 134.0 Average heat shortage MM Btu/hr 44.1 21.7 44.1 21.7 0 Required additional steam, average lb/hr 24,930 12,270 23,250 11,430 0 Heat required for DH winter MM Btu/hr 177.0 Winter heat shortage MM Btu/hr 87.1 64.7 87.1 64.7 42.2 Required additional steam in winter lb/hr 49,235 36,595 45,910 34,090 22,230 Effective power generation, average 2) MWe 4.39 7.22 3.72 6.28 8.84 Effective power generation, winter 2) MWe 2.15 4.98 1.64 4.19 6.74 1) = Heat content in exhaust – (minus) heat content in flue gas at minimum allowable temperature 275oF. 2) Effective power generation is the power that can be produced with the additional steam in extraction cycle at 120 psig. 25 G. Heat Recovery Steam Generation System The Alstom HRSG will produce superheated steam, in unfired operation, at two pressure and temperature conditions: HP = 1100 psia / 950°F and LP = 87 psia / 386°F. The generated steam is routed to an arrangement of two steam turbines, which drives an electric generator through a gear. The high-pressure steam supplies the HP turbine, and the low-pressure steam supplies the LP turbine. GE proposed an unfired HRSG, single-pressure, two drum, natural circulation, top supported unit. Heat absorption surfaces will be mounted in factory-assembled modules to facilitate construction. The HRSG will produce superheated steam at 600 psig, 750oF. The HRSG is also equipped with a supplementary liquid fuel - fired duct burner section. Some of the most important design features of the HRSG will include: ƒ All tubes will be formed with extended surface arranged inline for ease of inspection, cleaning, and maintenance. In addition, access cavities will be provided between modules. ƒ The inlet ductwork will include a gas distribution system for uniform temperature and flow upon reaching the duct burners or superheater bank. ƒ The inlet duct will include multiple layer insulation. ƒ Two-drum design – steam and mud drums. ƒ Modular construction with integral circulators to minimize field welding of interconnecting risers and downcomers. Modular construction also allows factory hydrostatic testing to assure ease of installation. ƒ Maximized module size to reduce foundation cost and area requirements. ƒ The HRSG will be top-supported to minimize upper drum movement and eliminate expansion joints in the casing around the upper drum. Top support also simplifies upper drum interconnecting piping. The HRSG is designed and fabricated in modules with modularized steam and water piping to simplify shipping and assembly in Bethel. The diesel powered plant (see Table 7) will include a heat recovery steam generator to generate superheated steam at 350 psig, 550oF, a portion of which will be used for additional power generation and a portion will be used for providing heat for the district heating system. The unit will be constructed similar to the HRSG described in Section VI. At the Crooked Creek location, the entire superheated steam will be used for power generation in a condensing cycle. 26 A separate heat exchange system will recover heat from the lubrication oil (LO) cooling system and jacket water (JW) cooling system. This heat recovery system will be minimal at the Crooked Creek location and will provide the marginal amount of heat required for plant space heating, fuel heating and local community heating. H. Steam Turbine Module Factory assembled, complete with steam inlet valves and servo motors, piping, instrumentation and wiring to junction boxes. Exhaust direction: Axial Exhaust hood spray system Including: ƒ Speed reduction gear; factory assembled, complete with instrumentation and wiring to junction boxes, quill shafts between turbine and gear and between gear and generator and electric turning gear ƒ Steam admission and extraction - Main steam inlet with Emergency stop valve(s), hydraulic operated with integrated steam strainer Control valve(s), hydraulic operated Steam Inlet Pipes, downstream ESV - Induction steam inlet 1, with hydraulic operated Emergency Stop Valve, Steam Strainer and hydraulically operated control valve, ƒ Gland steam system with interconnecting piping, gland steam system unit - assembled module, complete with instrumentation and wiring to junction boxes. ƒ Lubrication Oil System with factory assembled, complete with piping, instrumentation and wiring to junction boxes lube oil supply unit, including: - Lube oil reservoir - Main oil pump AC motor driven - Stand-by oil pump AC motor driven - Emergency oil pump DC motor driven - Hydraulically driven emergency coast-down oil pump - Oil Coolers (2 x 100%) with water cooled plate heat exchangers, provided with non-interupting switch-over valves - Duplex oil filters, provided with non-interupting switch-over valves - Oil temperature control valve - Oil vapour exhaust fan and demister - Oil heaters - Jacking oil pump 27 - Oil dehydration unit ƒ Hydraulic Oil System And other support systems and equipment required for efficient operation of the turbine. The system also includes insulation consisting of: ƒ Noise enclosure over turbine, gear and generator to reduce noise to less than 85 dB(A) at 1 m (3 ft) distance ƒ Rain shelters for oil units and auxiliary systems ƒ Turbine casing heat insulation I. Steam Condensing (cooling) System including ƒ Tubular steam condenser that condenses steam at 1.5 inches of Hg column ƒ Cooling tower with basin and foundation ƒ Condensate circulating pumps, each with 100% of total circulation capacity ƒ Settling pond with appropraite piping ƒ Condensate Polishing Plant Water for the cooling towers will either be drawn from wells or the river. As an alternative to cooling towers, the cooling system may consist of once through water cooling from a nearby pond in Bethel. Although the once-through cooling system is attractive from the cost and operation point of view, it may have environmental drawbacks, which will need to be addressed in any environmental report. A once through cooling system could reduce construction costs and lessen plant parasitic power. A packaged water tube - type boiler, diesel fired, will be installed for use during startup and to provide steam, in the event that all the three CTGs are not available for service to provide freeze protection, building heating and district heating system. The boiler can also be used to supplement the district heating system J. Electric Generation System, consisting of: ƒ Three medium-voltage three-phase synchronous generators, each driven by the 2 active and one stand-by combustion turbines, 13.8 kV, 60 Hz ƒ One three-phase synchronous generator driven by the steam turbine, also 13.8 kV, 60 Hz. ƒ Generator neutral earthing equipment ƒ Medium-voltage switchgear with all feeders and coupling panels K. Feedwater System 28 1. Feedwater Pumps The system includes two 75% capacity feedwater pumps, which deliver deaerated feedwater from the deaerator through the condensate heater and economizer to the boiler drum. The pumps are provided with minimum flow re-circulation controlled by a system of diaphragm actuated flow control valves. A main flow control valve will maintain the proper water level in the steam drum. The pumps will be capable of delivering feedwater to the HRSG at a pressure at least 3% above the highest safety valve setting on the HRSG, as required by the ASME code. The pumps will be horizontal multi-stage centrifugal type. One pump will have a dual drive including electric motor and steam turbine; the latter will be used at system start-up and to maintain, for safety purposes, water flow to the steam drum in case of total plant blackout. 2. Demineralizing System Two (2) 100% makeup water demineralizer systems with capacity of 50 USgpm each will be provided. The systems will include 100,000-gallon makeup water storage tank from where makeup is pumped to the deaerator. The system will also provide, if required, water for injection in the CTG to control NOx emissions. 3. Phosphate Feed System Phosphate feed to the HRSG steam drum will be controlled to maintain the desired phosphate residual and alkalinity in the boiler water. 4. Organic Feed System will be introduced to the deaerator to maintain the desired specific conductance in the condensate. 5. Oxygen Scavenger Feed System includes chemical feed into the deaerator to remove dissolved oxygen in the condensate. L. Instrumentation and Controls including the DCS System 1. The Plant DCS System The combustion turbine generators and steam turbine are controlled through an advanced distributed control system (DCS) consisting of an ABB Advant DCS equipment package. The Advant system is designed to provide automated start-up and shutdown of the CTGs and the STG from the control room. The DCS provides supervisory oversight, monitoring, and set point regulation for local controls devices. The supervisory function allows operation of major plant processes and equipment from the local control room. Processing units function independently, however, the exchange of signals across the communications network for controls purposes is avoided wherever possible. 29 Controls for the District Heating system and the BOP systems will be also integrated into the DCS system. The main functions of the DH system to be integrated into the DCS system are: - Steam supply to the Central Heat Exchange Station based on ambient conditions and demand signals from local heat exchange stations. - System circulating water parameters, and so on. The system will allow a large degree of independence of the DH system within the framework of the Power Plant operation requirements. The Control Philosophy will be designed to the needs of the Modular Plant. 2. Process Controls Major plant systems to be controlled and monitored include: a. Combustion Turbine/Generator System b. Heat Recovery Steam Generator System c. Steam Turbine Generator System d. Condensate, Feedwater and Demineralizer System e. District Heating Systems 3. Combustion Turbine Generator Systems Each combustion turbine generator is supplied with a dedicated microprocessor - based control system. It contains the unit metering, protective relaying and control switches. The control system provides control functions including: fuel, air and emissions control; sequencing of turbine fuel and auxiliaries for start-up, shutdown and cool down; monitoring of turbine control and auxiliary functions; protection against unsafe and adverse operating conditions. The plant control system will interface with the combustion turbine control system through a data link. The CTG is designed for a “pushbutton” start locally or from the control room. Its operation is fully automatic. The remote control from the control room is accomplished from the plant control system CRTs via a digital link from the CTG control system. The plant control system logs analog and digital data. Under abnormal conditions the CTG output may be lowered for short durations during that time, the units will operate at a lower efficiency. 4. Steam Turbine Generator: The STG will be supplied with standard stand-alone control system handling all 30 closed and open loop turbine controls. The control system will include: a. Woodward Governor 505E based turbine loop controls b. Allen Bradley PLC module for turbine safety trip functions c. Allen Bradley PLC for turbine auxiliary control d. Generator AVR e. Generator protection relays and synchronizing equipment. 5. Heat Recovery Steam Generator System Control of the HRSG will consist of the following loops integrated into the plant DCS system to safely and efficiently maintain steam header and feedwater pressure to match turbine-generator requirements during start-up, normal operation, upsets, and shutdowns The HRSG control system will be comprised of the following subsystems: a. HRSG Drum Level Control System b. Steam Temperature Control c. Plant Service Steam Temperature Control d. Deaerator Level Control 6. HRSG Drum Level Control System The HRSG drum level control system will be a conventional three-element control system using main steam flow as the feed-forward signal; drum level and feedwater flow as the feedback signals. Based on demand, the system controls a feedwater control valve to adjust the flow to the boiler. The system is designed to operate on single element control using drum level only during start-up. 7. Main Steam Temperature Control System The purpose of this system is to maintain the final superheater outlet temperature at a manually set value with minimum fluctuation. This is a single station, Cascade-type control system in which the final superheater outlet control unit serves as the master or primary control unit and the desuperheater outlet control unit serves as the slave or secondary control unit. 8. Plant Service Steam Temperature and Control Steam header temperature will be controlled through a desuperheater with a temperature controller that will regulate feedwater flow to maintain temperature. 9. Deaerator Level Control System The deaerator level will be controlled from the control room. If the level is low, make-up will be admitted from the demineralized water storage tank. Overflow will be discharged to the condensate tank. Level switches will be provided to alarm high and low levels and to trip the feedwater pumps on low-low level. 10. Feedwater System 31 Boiler Feedwater systems will be provided with pump minimum flow control, which is furnished by the pump manufacturer. This normally consists of an automatic recirculation control valve, which will circulate water back to the deaerator during periods of low HRSG feedwater demand. 11. Demineralizers The Demineralizer system will be equipped with a programmable controller (PLC). The water conductivity will be monitored in the control room. 12. Plant Monitoring System All required plant parameters would be monitored and indicated, alarmed and/or recorded in the control room to facilitate the plant operator with control of the plant. The gas turbine will be interfaced to the plant control system for monitoring and trending. Local indicating devices, pressure gauges, thermometers, etc., will be furnished for local monitoring of selected plant parameters. Grab sample ports will be provided on the condensate, feedwater and main steam lines for periodic analysis for other contaminants. Sample coolers, as required, will be provided. M. District Heating System 1. Bethel The Power Plant located in Bethel will include a district heating system, which will meet the diverse thermal energy needs of Bethel’s residential, institutional, commercial and industrial customers. For the Crooked Creek location, it’s proposed to include a small system for heating the local housing. Based on the heating oil usage records and projected city and surroundings growth, we estimate that Bethel will require the following heat supply: ƒ Summer supply: 127 million Btu/hr averaged over for May - August ƒ Winter supply: 177 million Btu/hr averaged over January & December ƒ Maximum winter supply: 230 million Btu/hr for about –40oF ƒ Yearly average supply: 134 million Btu/hr Since the numbers represent monthly averages, the actual minimums and maximums may differ significantly from the given amounts. It is planned that during a 2 to 3 week period in July or August, the system will be shut down for maintenance. The maximum winter demand of 230 million Btu/hr is estimated based on recorded low temperatures. The system has been engineered so that every reasonably accessible building in Bethel can be supplied with heat and hot water. This includes all residential housing, 32 schools, the community college buildings, government buildings, city buildings, the hospital, the prison, the airport, and local businesses. The system can also provide heat to an existing or new swimming pool for the general population of Bethel. The development of the Bethel Power Plant will include the construction of trunk pipelines (see drawing BT20089-00-000-001) for supplying heat to one Central Heat Exchange Station. From there one main trunk line will serve the airport and one will serve the City. The pipeline to the City will branch out to the North and East. It is assumed that smaller distribution lines for buildings or groups of buildings will be constructed by the City or by private enterprise. Heating buildings is accomplished by hot water produced during electricity production and then piped to receivers around whole districts. Providing both heat and hot water is an extremely efficient use of fuel and demands co-ordination of energy supply with local physical planning. There are over 30,000 district heating systems in the USA. Hot water district heating meets the thermal energy needs of residential, commercial and industrial users from the same distribution line. In the combustion turbine driven MPP, applying waste heat to district heating allows increasing the thermal efficiency of the plant to as high as 83 or 84%. In the diesel engine driven MPP, the thermal efficiency can be as high as 69%. The Bethel district heating system will be based on using hot water instead of steam as the thermal energy carrier. Older district heating systems use steam for this purpose, however, there has been a general movement towards using hot water, which is recommended by the International Energy Agency – an international body with headquarters located in Europe that promotes energy efficiency by using district heating and heat pumps. The advantages of water heating over steam heating are several, the most important of which are: a. Safety. Water is used in district heating systems with temperatures in the range of 170 – 194oF (77 – 90oC), which is sufficiently below the water boiling temperature. A leak in the piping, whether outside or inside the heated space, will not result in rapid conversion of water to steam, which prevents the possibility of scalding or a steam explosion. b. At working pressures the volume of steam is 180 times larger than the volume of the same mass of water. This means that water requires smaller diameter piping and valves, as well as smaller size pumping and heat exchange equipment. Smaller diameter piping results in lower overall heat losses; hot water systems lose only a maximum of 10% of their energy before it is delivered to the desired location, whereas same duty steam - based systems lose as much as 30% of their energy to ambient air. 33 c. Due to safety considerations, pressurized steam systems must be built according to the ASME Code; as a result, they are significantly more expensive in both capital and operating cost terms. Steam systems are also more expensive due to larger pipe sizing and the requirement for higher horsepower of drives for pumping equipment. The maintenance cost of steam-based systems is also significantly higher than that of water-based systems. 2. System Specifics a. Pipes & Pumps Sizing pipe for the district heating system was determined by the estimated heat usage of the Bethel community. The heat capacity of the Bethel district heating system was based on the average heating oil usage, accounting for 20% growth over 10 years. We estimated a heat delivery rate of 177 MM Btu/hr average load in winter, with a maximum momentary winter load of 230 MM Btu/hr. The heat load also accounts for utility hot water usage. Heating water delivery rate is based on the heat demand and the temperature difference between the delivery and return lines. At a ∆T of 65° F the required pipe size to avoid incurring excessive pumping costs while balancing capital costs is 16” pipe. The attached Tables DH1 and DH2 show calculation of the relative capital costs and yearly pumping costs based on heat demand. Calculated costs are for pipe sizes ranging from 10 inch to 24 inch. For supplying pipe we have contacted several manufacturers that are familiar with district heating pipe. Prices for the pipe ranged from $25 per linear foot for 10-inch pipe to $83.00 per linear foot for 24-inch pipe. The pump size needed was also determined using the table DH1. The 16-inch pipe seems to be the most economic. The required horsepower at 177 MM Btu/hr is 531 HP and 757 HP for 230 MM Btu/hr. This gave us the general pump size and required operating energy. b. Heat Exchangers The District Heating system will include main heat exchangers where the district heating water is heated with heat supplied from the Power Plant. The size of the heat exchanger was determined by the average winter heat rate of 177 MM Btu/hr. However, the system will have sufficient capacity to allow for heating demands during extreme low temperatures. The heat exchanger is a condensing type to make use of the latent heat of vaporization. After the main exchange station at the Power Plant, there will be several local exchange stations to deliver heat to individual or groups of houses. These 34 stations will have heat exchangers that transfer the heat to a lower pressure loop that delivers hot water below 15psi. The reason for the low-pressure loop is to meet the 15psi limit for ASME building codes. The size of the intermediate heat exchangers will be determined by the heat requirements of the surrounding structures. Using water directly from the District heating system should be avoided to prevent contamination of the water in the main trunk lines, and to extend the life of the system. Contaminated water increases maintenance costs and causes premature failure in the main distribution lines. Also, the pressure for delivery water needs to be kept low for safety reasons. Since the delivery pressure in the main lines will be above 70psi, an intermediate loop will allow the pressure to be dropped to a reasonable level for safety. At the final delivery point, radiant heaters will be installed in individual buildings for heating. These heaters will run off the intermediate exchangers that are linked to the main trunk lines. In some cases, forced air heating units can be retrofitted for district heating. c. Backup System For the modular Power Plants, we will include a stand-by package oil-fired boiler used to supply heat for district heating. This boiler will only be operated when the plant is down for maintenance. 3. System Installation The scope of the feasibility study only covers the basics of main trunk piping, primary heat exchangers at the power plant and exchange stations. A more thorough investigation will be needed to obtain a better knowledge of the customer base and the engineering specifics of a complete district heating system. The overall capital equipment cost includes the main trunk lines, the delivery pumps and the primary heat exchangers at the power plant and exchange stations. The install costs for a district heating system will be significant, as several miles of main trunk lines will have to be laid. With our current information, we estimate that laying the main trunk line, installing the central exchange station, and insulating pipe joints will take about 40,000 man-hours. Additional residence and hookup costs will depend on the size and demand on the district heating system. The only needed regular maintenance for the district heating system will be on the primary feed pumps and heat exchangers at the Power Plant. Main trunk lines for district heating will have to be inspected yearly, as will intermediate heat exchangers. 4. Crooked Creek 35 Because of the low population density and distances between houses, the cost of connecting to the system will be extremely high and was not investigated as part of this study. N. Environment Protection System The Environment Protection System of the combustion turbine-driven Modular Power Plant is simple and requires little or none controlling systems to maintain highest performance in Alaska. The Modular Plant will not generate emissions above the best performance of other type power plants. As a matter of fact, the factual emissions will comply with the BACT philosophy (best available control technology). It will generate practically no hazardous liquid or solid waste. 1. Emissions to the Ambient Air Alstom Power as well as GE Power are ready to guarantee emissions. The following table is the performance guarantee issued by Alstom Power. GTX100 AEV Burner System Load 50 - 100 % Fuel Fuel Diesel No 2 NOx ppm vol at 15% O2 35 35 25 CO ppm vol at 15% O2 5 5 5 UHC ppm vol at 15% O2 5 5 5 VOC ppm vol at 15% O2 4 4 4 PM10 mg/Nm3 8 8 8 SO2 ppm vol at 15% O2 <200 <200 <200 UHC - Unburned hydrocarbons; components are measured as C3H8 VOC - Non-methane, Volatile organic compounds; components are measured as C3H8 Ambient conditions: - Barometric pressure 950 - 1050 mbar / 13.7 - 15.2 psia - Ambient temperature -35 -- +50 C / -31 – 122oF - Relative humidity 0 - 100% GE Power Systems’ stated performance is as follows: NOx ppmdv 42 NOx lb/hr 53 CO ppmdv 6 CO lb/hr 5 HC ppmdv 2 36 HC lb/hr 1 SO2 ppm <200 The GE values are based on dry volume (commonly used in the USA), whereas Alstom is based on total volume (commonly used in Europe). The values are comparable; practically the same. Neither NOx nor CO emissions need to be controlled. For comparison, the performance of diesel engines installed in Alaska without tail-end gas treatment systems is in the range of 900 to 1000 ppm vol. Diesel engines even with a tail end control system – Selective Catalytic Reduction (SCR) do not perform as well as the combustion turbines. Sulfur dioxide (SO2) emissions depend entirely on the sulfur content in the fuel to be used in the Plant. The selected fuel (DF2 supplied by Tesoro) has an average measured sulfur content of 0.1% - one fifth of the permitted value. Particulate matter is produced from the incomplete combustion of fuels, additives in fuels and lubricants, and worn material that accumulates in the engine lubricant. These additives and worn materials also contain trace amounts of various metals and their compounds, which may be released as exhaust emissions. As the Alstom performance guarantee shows, the PM emissions from a GTX100 turbine is in the range of 8 mg/Nm3. The most stringent PM emission standards (for hazardous waste incineration) set the limit at 25 mg/Nm3 (for Environment Canada Standard). 2. Liquid and Solid Waste The plant produces negligible amounts of liquid or solid waste: - Blow down water from the HRSG at the estimated rate of 420 gallons per hour. This stream can be normally discharged to the sewer system, settling pond or can be recirculated back into the make-up water demineralization system. - Blow down (bleed rate) from the cooling tower circulating cooling water at the estimated rate of 10,000 gallons per hour. This stream is also not hazardous - it has a higher concentration of minerals in the water; it can be normally discharged to the sewer system or to a settling pond. Normally treatment of this stream is not required. - The plant will generate a very small amount of filtrate from filtering fuel before injecting to the combustion chamber. This waste will be placed in containers for disposal at a local landfill or for shipping to the mainland. 37 - Other waste generated at the plant will be sewage and average municipal garbage. Which will be disposed of at the City of Bethel disposal facilities. 3. Noise prediction Both Alstom and GE Power Systems guarantee low noise from their turbines. Below a short noise prediction has been performed by Alstom for a typical energy park plant. Sound pressure levels in dB(A) have been calculated for receiver points at 1000,1500 and 2000 feet's distance from plant center. A grid noise map showing the predicted sound pressure levels over the surrounding area has also been calculated. For the predictions, Soundplan 5.6 for Windows was used. The calculations in Soundplan are made by the “General Nordic prediction method”. The acoustic model consists of all main buildings and major noise sources, which means that different screening effects are taken into account. The noise emission data (sound power level dB relative to 10-12 W) is introduced. In this prediction the values of the sound power levels from the noise sources is standard values. Often there is a specific noise limit mentioned in the contract. From the limit an acoustical design of the plant regarding different silencers and less noisy equipment is performed. In the typical prediction, the values of the sound power levels from the noise sources are standard values. Therefore it is possible to reduce the sound pressure levels in the receiver points if the customer presents any particular noise limits. The results of the prediction can be seen in Table 8 below. All values are A-weighted sound pressure levels relative to 20-5 Pa. The following page shows a picture of the average decibel ratings of some activities. Figure 6 Typical Noise Levels 38 Table 8 Predicted sound pressure levels in dB(A) 39 Receiver No: Sound pressure level dB(A) 1 (1000 Ft) 52 4 (1000 Ft) 49 5 (1500 Ft) 47 2 (1000 Ft) 47 3 (1000 Ft) 47 8 (1500 Ft) 45 9 (2000 Ft) 44 6 (1500 Ft) 44 7 (1500 Ft) 43 12 (2000 Ft) 42 10 (2000 Ft) 41 11 (2000 Ft) 40 As the noise grid map and the above table show, the plant will not be heard in Bethel and the airport. 40 Figure 7: Grid noise map, Predicted sound pressure level dB(A) 41 O. Balance of Plant Systems and installations include: ƒ Compressed Air System, ƒ Auxiliary Boiler ƒ Plant Utilities ƒ Buildings and other Enclosures ƒ Maintenance Division ƒ Plant Waste Management described in Section Environment Protection System 1. The Compressed Air System will provide air for actuation of various control valves and for power tools. It consists of: ƒ Compressor, 120 psig, air cooled, with electric motor ƒ Starting air receiver, working pressure 110 psig ƒ Condensate collector for compressor and starting air vessel ƒ All necessary piping 2. Auxiliary Boiler Diesel fuel and used lube oil - fired boiler working in standby duty. The boiler is used during plant start up for steam line blowing and to provide heating of the fuel and plant. During normal operations of the Plant, the boiler will be used sporadically during periods with very low ambient temperatures, when the heat recovery system cannot provide sufficient heat for space heating and the district heating system. The paged, water-tube boiler will be equipped with all necessary controls and instrumentation. 3. Fire Protection System: The fire protection systems will include redundant water pumps including a diesel engine - driven unit. The 100,000-gallon raw water storage tank will serve as a source of fire-fighting water. As an alternative, water from the cooling pond or make-up water well will be used. Appropriate detection, alarms will be included in strategic locations and system actuation will be automatic when and where necessary. For the main electric systems, automatic release halon extinguishers will be used: ƒ Control Room electric and electronic equipment ƒ Distributed Control and Supervisory system processor ƒ Motor Control Centers ƒ Turbine / Engine monitoring and control system 42 ƒ Station service transformer 13.8 kV / 4160 V 60 Hz ƒ Low-voltage distribution for auxiliary drives ƒ DC supply system for monitoring and control systems ƒ All other electrical equipment and installations requiring protection 4. Plant Utilities Plant utilities include: ƒ Water system for other than process uses – drinking and sanitary water and supply to the fire-fighting system. The utility water system is closely correlated with the process water system. ƒ Electric utility system – lighting, Maintenance Shop power, various non- process alarms and operation of the fire protection system. For the last function the system will be connected to the alternative UPS (Un-interrupted Power Supply) system. The system is closely correlated with the electric system for the process. ƒ Compressed air – described above ƒ Sewage and spill collection system will collect and deliver sewage and spills to a tank, which will be services by the City of Bethel or a local contractor. ƒ The HVAC system will be provided for the control room and electrical room and the maintenance shop only. The electrical room will be ventilated and cooled to maintain less than 85°F temperature. Control rooms will be maintained at 68˚F. Introduction of outside ambient air was assumed sufficient for this purpose, i.e.; no mechanical cooling equipment is necessary. The rooms will be heated with hot water, as required for operator’s comfort. The process buildings will be heated sufficiently by the process equipment; for ventilation, fans will be installed where required. 5. Civil Works, Buildings and other Enclosures To minimize the cost and promote modularization all equipment of the Modular Power Plant will be housed in modular structures that will allow easy access to the equipment and also relocation of the plant. The structures will thermally and sound insulated as needed. Control Room, office and utility space will also be provided in modular units. 43 As a result of such development, the civil works will be simplified and will include only necessary works and structures such as: ƒ Site preparation, earthworks ƒ Limited piling and foundations for placing the modules ƒ Tank farm Geotextile lining, thermal protection of the Permafrost with Thermo Siphon ƒ Simplified tank foundations ƒ Tanks and other tank farm related works For a listing and specification of site development, earthworks, foundations and tank farm please see the attached Conceptual Design Report by LCMF LLC of Anchorage, Alaska. 6. Maintenance Shop Due to the limited capabilities for local fabrication and repair, the plant will include a reasonably sized maintenance facility. This facility will be able to service both basic plant equipment and the rolling stock on the premises. See attachment Maintenance and Repair Shops. 44 VII. RELIABILITY AND AVAILABILITY STUDY A. Introduction The Feasibility Study of the MPP to be located in Bethel or Crooked Creek, Alaska, includes as an important section, Determination of the Plant’s Predicted Availability and Reliability. Reliability is defined as the probability that an item (component, equipment, system or even an entire plant) will operate without failure for a stated period under specified conditions. Availability is defined as the fraction of the total time that a device or system is able to perform its required function. The availability can be expressed as a fraction (or percentage) as follows: Availability A = MTTRMTTF MTTF +; Where: MTTF = mean time to failure (mean time the items is working or available to do the work) MTTR = mean time to repair. MTTR + MTTF = total time Reliability is represented by: R = TT UPOTTT−; Where: TT = total time in the period UPOT = unplanned outage time The reliability quotient includes planned outage (for instance, for planned maintenance or plant vacation shut down) in the time the system is ready to work. Only unplanned outages reduce the reliability factor. 45 B. Basis of High Availability and Reliability Plant operating availability and reliability depends on the following major areas: ƒ Engineering & Construction ƒ System/Equipment Redundancy ƒ Equipment and Manufacturers ƒ Maintainability and Operability ƒ Operating & Maintenance Practices ƒ Safety 1. Engineering & Construction Desired plant availability and reliability starts at the drafting table and engagement of the design company of the project from the very beginning. This is done through contracting with a reputable engineering and construction company that have the characteristics outlined below. The desirable situation would be a construction company with a strong engineering division specialized in power generation projects. The characteristics of desirable engineering and construction contractors: ƒ Extensive and recent experience on similar or comparable projects ƒ Excellent track record and client references ƒ High caliber staff of professional engineers and managers ƒ Good Quality Assurance Program based on company’s own experience ƒ Use of good engineering and design practices including; constructability, operability, maintainability, and adherence to safety 2. System / Equipment Design and Redundancy System/Equipment Design and Redundancy should provide for most efficient and reliable technology and layout, as well as for sufficient redundancy. One important ingredient of an efficient system is that it is based on equipment design that has been used extensively and successfully in similar applications with as much redundancy as practical. ƒ Systems or equipment, by their nature of service, require frequent maintenance or whose loss would cause unit or plant outage should be designed with inherent redundancy. ƒ Use of system and equipment designs that have been applied and proven in similar applications exhibiting high availability and reliability 46 3. Equipment and Manufacturers The objective here is to procure reliable equipment and to shorten downtime with the availability of Service Representatives and proximity of service shops. ƒ Procure equipment from leading and quality manufacturers that have excellent track record in the industry or similar applications ƒ Proximity and responsiveness of manufacturer’s Service Representatives when called to assist ƒ Proximity of manufacturer’s repair or overhaul shop 4. Maintainability and Operability The objective of plant maintainability and operability is to minimize the complexity and time required for maintenance and to operate the plant with minimum number of operator surveillance. This is generally accomplished by the following: ƒ Using equipment having features of low maintenance design ƒ Equipment designed to be maintained in-place with minimum disassembly and minimum usage of temporary scaffolding/rigging and handling tools. ƒ Installation of permanent maintenance platforms where required ƒ Accessibility and adequate space around equipment ƒ Permanent cranes and hoists where practical ƒ Environmental protection where necessary ƒ Equipment and system design selections based on minimizing operator attention ƒ Automatic startup and shutdown operation ƒ Manual intervention features of automatic processes ƒ Equipment capacity selection to provide maximum turndown, as may be required ƒ Monitoring of systems and equipment to provide operators information for safety and indications for required maintenance ƒ Remotely located control panels properly positioned for operator’s visual and physical access in the control room ƒ Local control panels properly positioned for operator’s visual and physical access ƒ Adequate lighting, ventilation and acoustic softening on operational areas ƒ Accessible valves, switches and other instruments 5. Operating & Maintenance Practices Perhaps this is the most significant factor affecting the reliability and availability of a plant. The objective here is to minimize unscheduled shutdowns of the plant by well planned operating and maintenance procedures or practices. Some of the 47 elements of good O&M practices are: ƒ Having operating staff with the right training and educational credentials ƒ Concise, easy to follow maintenance and operating procedures ƒ Diligent monitoring and trending the systems and equipment performance ƒ Preventive maintenance as recommended by equipment manufacturers ƒ Adequate spare parts inventory ƒ Membership in a spare engine pool ƒ Good housekeeping practices 6. Safety Prevention of accidents and resultant injuries contribute significantly to plant availability and reliability. Here are some key OSHA items to consider: ƒ Any hazardous materials should be stored and handled as required by applicable codes and standards ƒ Rotating equipment shall be provided with appropriate guards against accidental direct contact by operators and dropped tools that could ricochet to cause injuries or damage to sensitive equipment, instruments and devices. ƒ Surfaces that are warmer than 120ºF that are accessible to operators during routine maintenance and inspection procedures should be insulated. ƒ Comfortable working environment ƒ Operators free of prohibited drugs and alcohol ƒ Adequate lighting and ventilation ƒ Good housekeeping practices C. Objectives of the Study Phase 1. Concept and Definition/Design and Development 1. Identify major contributors to risk and significant factors involved; 2. Provide input to the design process and to assess the adequacy of overall design; 3. Provide input to the assessment of the acceptability of proposed potentially hazardous facilities or activities; 4. Provide information to assist in developing procedures for normal and emergency conditions; 5. Evaluate risk with respect to regulatory and other requirements. Phase 2. Construction, Production, Operation and Maintenance 48 1. Monitor and evaluate experience for the purpose of comparing actual performance with relevant requirements; 2. Provide input to the optimization of normal and emergency procedures; 3. Update information on major contributors to risk and influencing factors; 4. Provide information on plant risk status for operational decision-making; 5. Evaluate the effects of changes in organizational structure, operational practices and procedures, and plant and equipment. The project is at the first phase, Concept, Project Definition, Development Decision; therefore, the study will concentrate on the predicted reliability and availability of the Power Plant from the standpoint of Project Concept, Input Design Specifications and Preliminary Selection of Equipment and Systems. D. Scope Definition Objectives: ƒ To define the system being analyzed; ƒ Describe the main concerns that originated the risk analysis; ƒ State assumptions and constraints governing the analysis; ƒ Identify the decisions that have to be made, criteria for these decisions, and the decision-makers; 1. Definition Of The System Summary Nuvista Light and Power is planning to construct and operate a new power plant in Western Alaska. The Plant will supply electric power to the Placer Dome’s Donlin Mine, to the City of Bethel and the neighboring villages and will supply steam and hot water to a district heating system for the City of Bethel. The subject of this Reliability Study is the MPP option in which combustion turbines or diesel engines would be applied for power and heat generation working in the combined cycle. Plant Description For specifics of the Plant please refer to Section VI. The plant will be sited to the south west of the City of Bethel at an area sized at approximately 80 acres. The site is in the proximity of the Kuskokwim River. The site sub-surface conditions are silty ground on top of not fully stable Permafrost – the average temperature of the frozen ground is slightly below water freezing, around 30ºF – 31.5oF. Soil geotechnical conditions are generally known for preliminary design of foundations and support structures; however, more testing and evaluation is required to avoid errors in foundation design. 49 An alternative location for the plant is Crooked Creek, AK, about 150 miles up river from Bethel. There are no reliable ground condition data; as a result, full geotechnical study of the ground conditions will have to be completed. However, an onsite examination of the borrow pit located at Crooked Creek indicates the soils consist of fractured rock, sands and silts. Based on these examinations it is expected that the soil conditions at Crooked Creek will be substantially improved over those at Bethel. Cogeneration Plant The Plant will include as prime movers three (3) fuel oil (diesel DF2) – fired combustion turbines of which two will be in continuous service and one in stand-by duty. The plant also includes a heat recovery steam generator and a steam turbine with condenser and cooling tower. The capacity of the Plant is as follows: At the Bethel location 126 MW CTG + 25 MW Steam Turbine + up to 230 million Btu/hr thermal energy At Crooked Creek location 126 MW CTG + 25 MW Steam Turbine + up to 3 million Btu/hr thermal energy Fuel System The diesel fuel (DF2) or equivalent fuel oil #2 will be stored in a farm of eight (8) 3.2 million gallons tanks installed next to the Cogeneration Plant. The fuel will be brought into the tank farm, during the Kuskokwim navigable period, between June 1 and September 30, by means of fuel barges with a capacity of 2.3 million gallons (7500 tonnes). The barges will bring the fuel to a fuel dock where it will be pumped to the bulk fuel tank facility headers via an eight inch (8”) insulated pipeline by means of a transfer pump. A standby transfer pump is also included. There are two 10 million gallon tank farms between the City of Bethel and the Power Plant operated by fuel shipping companies and storing mostly diesel fuel. Other plant systems are described in Section VI. Description Of The Power Plant. The content of sulfur in fuel and resulting from this content of SO2 in flue gas is below Environmental Standards that will be imposed on the Plant, therefore, removal of SO2 from flue gas (FGD system) will not be required. Generation of nitrogen oxides in the combustion turbines is below requirements, therefore, special means for NOx reduction (SCR) will not be required. Plant Operation The MPP will be operated on a 24-hour, 7 days / week basis with no planned shut downs. Since there is one CTG stand-by unit, there is no need to reduce the plant 50 capacity for planned maintenance. If the HRSG or steam turbine needs to be taken off line for repairs or maintenance, the following operations procedures will be implemented: The two CTG may be run at full capacity generating a total of 85 MW net. Taking into account that the gross plant output includes the assumed power contingency and parasitic power demand of the steam plant (please refer to III. Project Specifications, Subsection A. Requirement Specifications), this output is sufficient to supply 100% power demand of the customers. In a highly unlikely situation, when two CTGs and steam turbine are out of commission one CTG will supply 42 MW, all of the generated power will be sent to the Donlin Mine and the City of Bethel will start up their stand-by diesel generator. Heat for the district heating system will be supplied either from the HRSG with steam by-pass to the DH system, or from the stand-by boiler if the HRSG is also out of commission. 2. Main Concerns a. Power Supply Interruptions The Power Plant will produce electric power to be supplied to the City of Bethel (9.3 MWe), Donlin Mine (70 MWe + 5 MWe transmission loss) and villages, and thermal energy to be supplied to Bethel and the villages. Interruption of power and heat supply may be harmful to both the residents and the mine operations. The related main concern is downstream of the process (supplying the customers). b. Ground Stability The plant will be built in the Kuskokwim delta where the ground is unstable permafrost with top layer being siltous material. Localized damage to the permafrost caused by heating and unnecessary penetrations may result in extensive losses of foundation stability and permanent damage to the plant. c. Fuel Supply As in any combustion power plant, fuel supply is critical for uninterrupted operation. This issue is described in full in Section V. Possible vulnerabilities are: 51 ƒ Late start of fuel supply season due to navigating conditions on the Kuskokwim River ƒ Shortage of fuel on the market due to international conditions. ƒ Inadequate fuel quality Late start of the navigational season due to weather conditions may result in disruptions of power generation near the end of May and into June. Shortage of fuel on the market will also be most visible in May and the following months. Inadequate fuel quality may result in increased fuel consumption (due to lower heating value), which in turn will result in faster depletion of the fuel stored in the tank farm. d. Instrumentation and controls are extremely important to reliable operation of the system. The issue is flagged here to raise the awareness of the engineer during the design and system supplier selection process. e. Plant Operations Management and Control System (DCS) Even the smallest errors in process design including the distributed control system and in operating and maintenance procedures may result in extensive reduction of the system reliability and availability. f. Other Concerns Other concerns include factors whose impact on the plant reliability is presently perceived to be minimal yet in certain conditions could be detrimental to the availability. Included here are: ƒ Make-up water supply and treatment; interruption of make-up water supply for a period longer than 48 hours will require shutting down the HRSG and, as a consequence, will eliminate power generation in the steam cycle. ƒ Excessive snowfall would limit access to the equipment modules. The largest snow precipitation values are in the range of 3 to 5 feet over the winter period. Larger snowfalls, especially such that happen in a short time span may cause significant operating and maintenance problems. ƒ Winds. The Bethel area has a very high proportion of strong winds. The Pressure Vessel design Code requires that structures be designed for winds up to 110 miles per hour. ƒ Plant lighting and grounding ƒ Fire prevention 52 3. Estimation of Availability of Equipment and Systems; Addressing the Concerns. In this study the main concern is the Reliability(R) and the Availability (A) of the entire power plant, not just single equipment items or even systems. a. Power Supply Interruptions are the results of possible operating problems. As described above, the plant layout provides for various arrangement of equipment that result in high reliability. At normal operations and properly conducted planned maintenance the system will achieve a reliability factor approximating 100%. The main processing equipment – combustion turbines or diesel engines, all with generators, exhibit reliabilities in the range of 99.0% to 99.8% (see Attachment Reliability/Availability of GE LM6000 & Alstom GTX100 turbines). The plant has stand-by, redundant prime movers to eliminate any uncertainty of their operation. In light of this, the Availability of the prime movers, including generators can be assumed as 100%. The Reliability of the prime moving system with redundant equipment, whose time from start to full capacity does not exceed two minutes due to “hot stand-by”, can also be assumed as 100%. The percentages are not for single equipments but for the entire prime power generation system. Other process systems, the HRSG and the steam turbine generator have also very high R/A factors; however, as described above, their failure do not impact the overall plant R and A. b. Ground Stability In predicting the ground stability the most important step is selection of engineering and construction contractors with extensive and recent experience, excellent track record with high caliber staff of professional engineers and managers. Based on the predictions, the same team will design and build the foundations for the plant. Properly designed foundations should have a reliability and availability of 100%. c. Fuel Supply To prevent any process interruptions caused by fuel supply problems, some important measures will be undertaken, such as: ƒ Enter into fuel supply agreements with a reputable company. 53 ƒ Acquire own fuel barges and tugs, which would be dedicated to bringing fuel to the plant. With all measures undertaken to assure fuel supply, the Reliability and Availability values are proposed to be assumed 100%. This does not include the factor relating to the situation on the international market. Taking into account that there is fuel obtained from local Alaska resources, this factor may impact only the cost of the fuel. d. Instrumentation and Controls and Plant Operations Management and Control. The Reliability and Availability of the Plant due to these factors will be controlled by high quality engineering of the process and the control system, including where required sufficient redundancy, as well as procuring the equipment from the most reliable suppliers (ABB, Honeywell, Allan- Bradley, Emerson). It is proposed to assume the R and A factors as 100%. e. Other factors Taking into account all auxiliary systems having impact on the Reliability and Availability of the plant and built in redundancy, it is proposed to assume the R and A factors as 100%. Some of the redundancies include: ƒ Doubled water treatment and preparation system (100% redundancy) ƒ Connection of all modules with covered passages ƒ Fire alarming and fighting systems as well as stringent implementation of fire prevention means E. Estimation of Plant Availability and Power Supply Reliability The plant consists of several in-line (series) and parallel systems. In-line: fuel supply Æ storage Æ delivery to prime movers Æ combustion in prime movers Æ power generation Æ substation (transformer and breakers) Æ supply to clients. 54 Parallel: 3 CTG lines; 1 STG line (HRSG + STG) Auxiliary system. In practice, all systems of the Power Plant operate in parallel, which means that for each important system, sub-system or device there is a back-up system, sub-system or device. The availability of the plant will therefore be equal to the availability of the weakest point in the system. In line system reliability Fuel supply to battery limits (tanks) 100% Fuel supply from battery limits to Prime Movers 100% Process (PM + generators + substation) 99.4% Ground stability 100% All other factors combined 100% Total line reliability = 100% x 100% x 99.4% x 100% x 100% = 99.4% Forced Outage Rate (F.O.R.) = 1-0.994 = .006 Hours per year unavailable to serve load = 8760*.006 = 52.56 hr/yr The plant availability will be reduced by planned maintenance of systems impacting the output of the entire plant. Since these systems include sufficient redundancy for maintenance work, it could be assumed that the Power Plant Availability = Power Plant Reliability = 99.4% 55 VIII. COST SUMMARY The following Table provides a cost summary of the MPP based on the Combustion Turbine technology and plant location in Bethel. The system costs include: Equipment cost Installation cost Shipping cost Project engineering and management Cost of camp for workers including food allowance and travel to mainland Table 9 System System Cost Combustion Turbine Equipment 51,300,000 Steam Co-Generating System 18,809,600 Combustion & Steam Turbine Additional Equipment 11,162,800 Civil & Structural, including LCMF scope 44,585,000 Plant Services 3,470,650 Rolling Stock 585,000 Project Services and installations 14,771,113 Start up and commissioning 398,420 Total Plant 145,083,000 Contingency 10% 14,508,000 Grand Total Plant 159,591,000 Cost per Megawatt @ 150 MW Gross Output 1,063,940 Not Included in the Modular Plant Price: Environmental Impact Study $3,000,000 District Heating System $12,209,500 Total Not Included in Modular Plant Price $15,209,500 The equipment cost of the diesel – based power plant is in the same order as the cost of the CT – based power plant, however, the installation cost, including bringing in cranes of sufficient lifting capacity, is significantly higher than that for the CT – based plant. 56 Table 9a shows the cost of the Modular Plant mounted on a barge. The fuel storage Tank Farm, the 100,000 gallon water tank, as well as the maintenance shop will be located on shore. Table 9a System System Cost Combustion Turbine Equipment 49,117,500 Steam Co-Generating System 16,112,000 Combustion & Steam Turbine Additional Equipment 9,208,900 Civil & Structural, including LCMF scope 38,335,000 Plant Services 2,674,825 Rolling Stock 385,000 Project Services and installations 14,771,100 Start up and commissioning 398,425 Cost of barge 4,500,000 Total Plant 135,502,750 Contingency 10% 13,450,250 Grand Total Plant 148,953,000 Cost per Megawatt @ 150 MW Gross Output 993,020 The capital cost of the barge mounted power plant is $10,638,000 lower than the cost of land- mounted plant. 57 Table 10 MODULAR POWER PLANT LOCATED IN BETHEL Comparison Of Turbine And Diesel Engine Driven Generators Full Or Partial Performance Information Provided By Vendors (Diesel Engine Waste Heat Recovery Calculated; Not Provided By Vendor) Prime mover ALSTOM KAX100-2CE GE LM6000+ MANB&W 18V48/60 WARTSILA 18V46 Combustion turbine (CT) Low-rpm Diesel Low-rpm Diesel Load demand NET OF PARASITIC POWER kW 90,100 90,100 90,100 90,100 Heat demand for DH and local heating (tanks) Btu/hr 176,904,000 176,904,000 176,904,000 176,904,000 Single engine /turbine output, shaft-operating kW 32,810 32,327 18,900 17,024 Maximum Output of Engine / CT kW 42,000 46,000 18,900 17,024Number of Operating Gensets working 2 2 5 6 Stand by CT or engine 1 1 2 2 HRSG (no stand-by) 1 1 1 1 Steam turbine (no stand-by) 1 1 1 1 Steam turbine output kW 24,980 23,040 9,630 8,589 Generator output on poles kW 88,270 87,694 92,135 99,600 Stand by steam turbine NA NA NA NATotal installed electric generating capacity kW 150,980 161,040 141,930 144,781 Over / under capacity excluding stand-by kW 500 (2,406) 14,030 20,633 Over / under capacity at 80% power demand kW 18,520 15,614 32,050 38,653 Fuel usage for 90 MW and thermal load Btu/hr 678,200,000 715,934,600 649,489,394 664,433,139 Heat rate for electric power generation only Btu/kWh 7,683 7,946 7,209 7,374 Energy for steam production used Btu/hr 149,340,000 155,000,000 125,700,000 118,630,000 Energy for steam production still available Btu/hr lb/kWh 0.409 0.431 0.391 0.400 Fuel usage at 100% power demand Btu/hr 678,200,000 715,934,600 649,490,000 664,430,000 Diesel fuel No. 2 (Williams specs) Btu/lb (LHV) 18,421 7.07 lb/US gallon 58 Fuel demand lb/hr 36,820 38,870 35,260 36,070 At 99% availability gal/year 45,165,000 47,680,000 43,252,000 44,245,000 At 80% power demand gal/year 36,132,000 38,144,000 34,601,600 35,396,000 Fuel cost delivered to BT at $1.05/gal at 80% power demand $ 37,938,600 $ 40,051,200 $ 36,331,680 $ 37,165,800 Energy efficiency Electric demand converted to thermal units Btu/hr 307,421,200 District heating demand, year average low T DH1 Btu/hr 134,000,000 District heating demand, average winter (most representative case) DH2 Btu/hr 176,740,000 District heating demand, highest demand DH3 Btu/hr 230,000,000 Tank heating Btu/hr aver 164,000 Total energy demand TD1 441,585,200 This is the most representative case and is used below TD2 484,325,200 TD3 537,585,200 Heat Balance/recovery Prime duty KWh converted to Btu Btu/hr 307,421,000 307,421,000 307,421,000 307,421,000 45.3% 42.9% 47.3% 46.3%Heat available for DH from prime mover exhaust Btu/hr 243,780,000 201,600,000 125,700,000 118,630,000 Heat to be utilized Btu/hr 176,740,000 176,740,000 176,740,000 176,740,000 Required additional firing / negative = reduction of input (90% efficiency applied) Btu/hr (60,336,000) (22,374,000) 56,711,111 64,566,667 Total utilizable energy Btu/hr 484,161,000 484,161,000 484,161,000 484,161,000 Total input Btu/hr 617,864,000 693,560,600 706,201,111 728,996,667 Total plant energy efficiency (TD/Btu input) PE2 78.4% 69.8% 68.6% 66.4%Heat rate with cogeneration = Btu IN / (kWe + Btu/3412) Btu/kWh 4,354 4,888 4,977 5,137 kWe - net electric output; Btu/3412 = cogeneration heating expressed in kWh; in energy terms kWe = kWh 59 Remarks: Performance information relating to MAN B&W had been calculated and needs to be confirmed with MAN Supply shortage from combustion turbines can be alleviated by duct firing Power supply shortage from Diesel engines can be alleviated by temporary exceeding design capacity At 80% power demand it may be satisfied with 4 diesel engines The diesel plant exhaust heat can be utilized either for direct heating of the DH medium or for combined power and heat generation; the first option renders higher efficiency. 60 IX. OPERATION AND MAINTENANCE Personnel # Employees Cost per Year Management Plant Manager incl. Safety and Environmental 1 120,000 Production Manager 1 72,800 Shift Hourly Personnel Shift Supervisor 4 210,413 Auxiliary Operator 4 190,862 Equipment Operator 4 148,595 Hourly personnel Administrative Assistant, Purchasing & Records 1 42,390 Millwright Machinist 1 52,104 Journeyman Welder 1 47,840 Journeyman Electrician 1 48,776 I&C Technician (2) 2 133,120 Total Personnel Full Time 22 Total Direct payroll cost 1,066,900 Burden Rate % 32% 341,408 Scheduled OT & Part Time 90,728 Non-Scheduled OT 100,029 Total Personnel Cost 1,599,065 Equipment O&M Fuel and lube oil for rolling stock and boiler 208,000 Technical Services and Outside Support 300,000 Testing, outside Lab Analysis, Inside water Lab and testing supplies 25,000 Travel, Training and Safety 50,000 Contact services-Janitorial 6,000 Consumables office 4,000 Consumables plant including water treatment chemicals 150,000 Replacement tools and equipment 15,000 Phone, mail and express service 12,000 Parts and Mat'l shipment to port, annual barging and misc. air 150,000 Water-No cost included in Maint. & station power 0 Spare parts & maintenance cost +Reserve of $500,000 Annually 2,650,000 Waste removal & disposal 7,500 Property lease 0 Insurance fee (Fire, Accident) 250,000 Total O&M 3,827,500 Taxes (No taxes in Bethel) 0 Miscellaneous contingency 5% 271,330 61 Total Annual O&M Cost including labor $5,697,895 O&M cost per kWh generated In Bethel $0.0073 In Crooked Creek $0.0089 ATTACHMENTS: 1. Schedule 2. General Contractor 3. Drawings 4. Photos 5. Maintenance & Repair Shops 6. Alstom 7. GE 8. Diesel 9. Conceptual Design Report 10. Fuels ATTACHMENT 1 IDTask NameDurationStartFinish1Project Go Ahead0 mons1/11/12Engineering & Design14 mons1/13/93Engineering for permitting (By others)0 mons1/11/14Process Engineering PFD, P&ID's4 mons1/15/45System, Equipment Specifications12 mons1/11/66Detailed Design14 mons1/13/978Procurement: Issue RFQ's, Select Suppliers6.91 mons2/19/29Diesel Tank Farm3 mons2/15/410Combustion Turbines4 mons2/16/411Steam Turbine Generating System w/HRSG4 mons2/16/412Instrumentation & Controls5 mons3/18/213Environmental System & Controls4 mons4/18/214Stand-by Generation & Steam System3 mons3/16/115Plant Utilities and Services6 mons3/19/216Civil & Structural Work & Equipment6 mons2/18/517Rolling Stock3 mons2/15/418Construction Camp & Utilities incl water supply4 mons2/16/419District Heating System5 mons3/18/22021Fabrication Including Shipping to Site16.98 mons3/18/722Diesel Tank Farm7 mons3/110/323Combustion Turbines15 mons5/18/724Steam Turbine Generating System w/HRSG15 mons5/18/725Instrumentation & Controls9 mons6/13/526Environmental System & Controls8 mons5/11/327Stand-by Generation & Steam System9 mons4/11/328Plant Utilities and Services9 mons5/12/229Civil & Structural Work & Equipment9 mons3/112/330Rolling Stock2 mons5/17/131Construction Camp & Utilities incl water supply4 mons3/17/232District Heating System5 mons4/19/23334Construction & Installation18.86 mons5/112/435Diesel Tank Farm6 mons5/111/236Combustion Turbines6 mons5/111/237Steam Turbine Generating System w/HRSG5 mons5/110/238Instrumentation & Controls2.5 mons9/111/1739Environmental System & Controls3 mons9/112/240Stand-by Generation & Steam System2 mons6/18/141Plant Utilities and Services3 mons7/110/142Civil & Structural Work & Equipment5 mons5/110/243Rolling Stock1 mon7/17/3144Construction Camp & Utilities incl water supply5 mons5/110/245District Heating System12 mons5/112/44647Startup & Commissioning2 mons11/11/148Fuel Line Flushing2 mons11/11/149Lube Oil Flushing & Dehydration2 mons11/11/150Steam Blows2 mons11/11/151Trial Runs of Turbines2 mons11/11/152Trial Run of Plant2 mons11/11/153Start of Power Production0 mons1/11/11/11/11/1Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Year 1Year 2Year 3TaskSplitProgressMilestoneSummaryProject SummaryExternal TasksExternal MilestoneDeadlineBethel CT Modular Plant Schedule (Time For Environmental Permitting Not Included)Page 1Project: Constr sched 29 11 19 ModulaDate: 11/19 ATTACHMENT 2 The Industrial CompanY$ May 15,2003 Rafal Berezowski Precision Energy Services 10780 N. Highway 95 Hayden Lake, m 83835 Bethel Alaska Cogeneration Plant Construction Services Budget Reference: Mr. Berezowski: TIC - The Industrial Company welcomes d1is opportunity to provide Precision Energy Services widt die enclosed budget proposal. This proposal represents die use of historical information to provide indicative cost for die installation of the Bethel Cogeneration Plant. Our proposal encompasses our best efforts to provide the inforn1ation requested, however some items we were unable to price at this time. Once again, we appreciate the opportwrlty to provide Precision Energy Services with dJis proposal and look forward to working with you. If you have any questiom, don't hesitate to contact me (503) 692-6327 Ext: 227. Respectfully, Dan Fontaine Dan Fontaine Estimating Manager Encl: Proposal North_t Region: 12705 SW Helman Road - P.O. Sox 889 - TualaJin. OR 97082 - (503) 692-6327 - Fax (503) 892,,4760 www.tIc-inc.com The Industrial CompanYI!I 1 00 MW PC Plant Cost Basis of Pricing Basis and Assumptions 1. Midwest USA location. 2. EPC cost basis with no liability for perfOmlance wrap. 3. 2 identical 50MW units independent of each other. 4. 2 GE LM2500 combustion turbines included. 5. Site is assumed to be flat, clear of~, requiring only surface drainage. 6. Piling is assumed for major foundations. 7. Plant is completely enclosed. 8. Limited underground piping and electrical. 9. Administration building and shop buildings are included. 1 O. All site finishes such as paving, fencing, stone cover are included. 11. Natural Gas is fuel for ignition, standby boiler, LM2500. Items not included 1. Freight for all equipment and materials from Seattle to the site 2. Man camp cost or personnel per diem or subsistence 3. Productivity factor for AI~ka (weather or remote site) 4. Operations personnel for start-up and training 5. Purchase of land, easements. right of way 6. Environmental pennitting and pennits 7. Handling of hazardous materials 8. Bethel district heating steam line form building wall offsite 9. 138kV electrical transmission line ftom switchyard takeoff tower offsite 10. Supply of coal handling equipment. II. Coal storage pile enclosure. 12. Utilities outside of site boundary (gas, makeup water, sewers, etc.) 13. Waterfront improvements, docks, barge moving equipment 14. P ennanent spare parts 15. Shop tools and lab equipment 16. Fuel, water, electricity for start-up and testing Norlh-t Region: 12705 SW Hetman Road - P.O. Box 889 - Tuaistin. OR 97062 - (503) 692-8327 - Fax (503) ~-4760 www.tic-inc.com TIC The Industrial Company BETHEL ALASKA COGENERA TJON PLANT PC Plant Cost - 100 MW Coal- 2 Unit - Greenfield Site Item Description Total Cost Total Plant Cost 172,435,000 1,724 72,070,000 Cost per kW Major engineered equipment purchase Plant Construction 65,405,000 Project Management & Indirect Costs 34,960,000 Status Date: 5/14/2003 Print Date: 5/15/2003 9: 13 AM1 OOMWPC.xJs Page1of1 TIC - The Industrial Company (TIC) (subsidiary of TIC Holdings, Inc.) is a management owned, general heavy industrial contractor. Established in 1974 and headquartered in Steamboat Springs, Colorado, the TIC family of companies has rapidly become one of the leading industrial contractors in the world. nc's dramatic success story had a modest beginning. Initially involved in municipal and light commercial work, TIC's "Can Do" attitude quickly caught the attention of the local coal industry. TIC's entrance into the industrial construction market began with the erection of the heavy equipment utilized for the mines in the area; draglines, shovels, etc. Our reputation within the mining industry grew and nc took on larger and more complex projects for the coal producers and process facilities for the uranium producers in Colorado, New Mexico, Utah and Wyoming. In 1977 TIC formed TIC - The Industrial Company Wyoming, Inc., establishing a permanent presence in the heart of the coal and uranium market. Additionally, nc began diversifying into the oil, gas and chemical market through the oil shale boom in northwest Colorado and the few refineries in the region. In the early 1980's, TIC took a significant leap forward securing two major projects for molybdenum producers, one in Tonopah, Nevada and the other in the central mountains of Idaho near Challis. The successful completion of all disciplines: civil, structural, mechanical, piping and electrical/instrumentation enabled TIC to take on the next major opportunity, the largest open shop project in California at that time, the Homestake McLaughlin Project. These projects set the stage for TIC's involvement in the most prolific gold boom in this country's history - The Carlin Trend in Nevada. During the late 1980's nc noticed a decrease in mining related activity and quickly realized that we must look at alternative markets for continued growth. Although in its infancy, the independent power market offered TIC some opportunities for diversification. TIC successfully entered the power industry by completing several geothennal and coal-fired, CFB, facilities in California. Since then, TIC has consistently been ranked among the top 10 contractors involved in power generation installations, including: simple and combined cycle gas turbine projects, cogeneration, coal-fired facilities as well as all types of renewable energy. As we expanded into other markets so did our geographical presence, establishing a foothold into the Southeast market through marine capabilities in Savannah, Georgia and later a significant industrial presence out of Atlanta, Georgia. Permanent operations were also established in California and the Northwest, accepting opportunities offered by the pulp and paper, refining, food and beverage as well as maintenance work. In 1993 nc Holdings, Inc. acquired Western Summit Constructors, Inc. (WSCI) as a wholly owned subsidiary. WSCI is a nationally recognized contractor involved in water and wastewater treatment facilities. In 1994 TIC International, Inc. was also formed as a subsidiary, having completed projects worldwide. Through this subsidiary are also the companies of nc Canada and MexnCa, located in Edmonton, Alberta and Mexico City, Mexico respectively. Additionally, TIC established a Gulf Coast Region headquartered in Houston, Texas, a Pipeline Division, ERS Constructors, in Sedalia, Colorado, a Northeast Region in Stonington, Connecticut, and a Great Lakes Region in Ann Arbor, Michigan. Today, we continue to position ourselves toward the future, constantly looking for growth opportunities and never losing sight of what has made this company so successful- our Core Values: Powered by People, Operations Driven, Be The Best, Integrity, and Can Do Attitude. Today, the TIC companies are ranked 32nd in revenues and 37th in new contract awards by Engineering News Record (ENR) with 2002 revenues of $1.221 billion and contract awards of $1.296 billion. Additionally, ENR classified the industrial construction market and has listed us among the top contractors in fifteen of the leading industries. They include: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5th in Fossil Fuel Power Plants 6th in Steel and Non-Ferrous Mining related construction 6th in Wastewater Treatment Plant construction (Western Summit Constructors, Inc.) 6th in Sewerage and Solid Waste Treatment Plant construction (Western Summit Constructors, Inc.) 8th in Power Plant construction 8th in Operations and Maintenance of Power Plants 8th in Marine and Port Facilities 10th in Darns and Reservoir construction (Western Summit Constructors, Inc.) 13th in Sanitary and Storm Sewers (Western Summit Constructors, Inc.) 13th in Transmission Lines and Aqueducts construction (Western Summit Constructors, Inc. and TIC - The Industrial Company) 13th in Refineries and Petrochemical Plant construction 14th in Maintenance Services 16th in Water Treatment and Desalination (Western Summit Constructors, Inc.) construction 17th in Food Processing Plant construction 20th in Water Supply construction (Western Summit Constructors, Inc. and TIC - The Industrial Company) Rev.OS/O3 The Industrial Company. TIC Holdings Inc. is a management owned, general heavy industrial contractor headquartered in Steamboat Springs, Colorado. Established in 1974, TIC has rapidly become one of the leading industrial const11lction companies in the country with an excellent reputation as a general contractor involved in all phases of const11lction. TIC is one of the largest members of the Associated Builders and Contractors, Inc. (ABC), an association of merit shop contractors and a major contributor to the National Center for Construction Education and Research (NCCER). Today, the TIC companies are ranked 65th in revenues and 55th in new contract awards by Engineering News Record (ENR) with 1997 revenues of $421 million and contract awards of $5 50 million. Additionally, ENR has further classified the industrial construction market and has listed TIC among the Top 20 contractors in nine of the leading industries. They include: 1st in Non-Ferrous Mining related construction 2nd in overall Mining related construction 4th in Steel Mill construction 5th in Sewage Treatment Plant construction (Western Summit Constructors, Inc 8th in Cogeneration Power Plant construction 20th in Industrial Process related construction 17th in both Refinery and Petrochemical Plant construction 15th in Power Plant construction In 1997 Forbes Magazine also ranked TIC among the largest privately held companies in the United States. TIC Holdings Inc. conducts business through its wholly owned companies: nc - The Industrial Company and Western Summit Constructors, Inc. (WSCI). WSCI is headquartered in Denver, Colorado and focuses primarily on water and waste water treatment construction projects in various areas of the country. TIC - The Industrial Company is the largest of the two companies and provides industrial construction services to a diverse client base across the U.S. through seven regional operations: Rocky Mountain, Southwest, Western, Northwest, North Central, Gulf Coast and Southeast. Additionally, TIC owns and operates two subsidiaries, TIC -International, Inc. and nc - Wyoming, Inc. TIC - International, Inc. (TICI) was established in 1993 to expand our construction capabilities into the international marketplace. This led to the company's first major international project, a 120 Mw geothermal power plant on the Island ofLeyte in the Philippines. Since then, TIC has completed several projects in other countries of the world TIC's primary focus relative to its international plan is centered around power generation, mining and petrochemical industries in the developing countries of Latin America, Southeast Asia and the Commonwealth of Independent States. TIC - Wyoming, Inc. was established in 1977 and is headquartered in Casper, Wyoming. This wholly owned subsidiary provides identical industrial construction services as nc focusing predominantly on the North Central region of the United States. As illustrated above, TIC is a highly diversified industrial contractor, involved in all major industrial markets such as: Power, Mining, Oil, Gas, Chemicals, Pulp and Paper, food and beverage and other related industries. The company typically self-perfomlS all major disciplines including civil, structural steel erection, heavy mechanical equipment installation, process piping as well as electrical, instrumentation and controls. TIC averages 7-8 million manhours annually and conducts business through a variety of contractual methods including full Tumkey/EPC, Design-Build, traditional general construction or through discipline packages. Regardless of any contractual relationship, TIC approaches each of its projects as a partnered relationship and is a film believer in the benefits of the Partnering process. This is not a contractual relationship but a philosophical approach taken by all project shareholders for open communication, team building and a commitment to achieving project goals. COMMITMENT AND DEDICAllON nc is proud to have climbed the ranks of today , s leading contractors. This achievement reflects the dedication of our employees and a commitment to providing clients with the highest quality project, in the safest manner and at the most competitive cost possible. nc is not the largest, but it strives to be the best. To maintain its position as a preferred contractor now and in the future, we must continue to focus on what has made it so successful! nc's Core Values are as Follows Purpose Statement TIC builds on its unique culture, creating opportunities for people to excel Core V lIlues Powered by People - Success is realized through our people Operations Driven - Focus on field operations, providing the necessary support, appropriate responsibility, and authority to succeed Be the Best - Strive for excellence, continuous improvement and innovation in everything we do Integrity- Be fair and ethical in all that we do Can do Attitude - Aggressively pursue challenges with a sense of urgency, a desire to succeed and a commitment to hard work and having fun SAFETY IS OUR NUMBER ONE PRIORITY ~ nc is committed to safety in every phase of its operations. This commitment begins with the President of TIC and extends to each employee and new hire. Everyone involved with the company, from craft level personnel and management to clients and subcontractors, is a key part of the team. The single most important goal is to Safely produce a top quality project every time. Having safety as our number one priority has resulted in one of the most impressive safety performances in our industry. TIC's Incident, Frequency and Severity Rates are among the best in our industry and a fraction of the national average. The company's clients and industry professionals continue to honor our achievements in the area of safety performance and our relentless commitment to a safe work environment. TIC has always felt that its Safety Program is among the best in the country. However, to ensure that the company's efforts truly meet the needs and expectations of its employees and clients, TIC felt it necessary to conduct an independent audit evaluating all aspects of the program. TIC solicited the expertise of Dupont's Safety and Environmental Management Services which is considered to be the leader in safety management. In short, their review confirmed that TIC truly has an outstanding program, committed to the health and safety of all our employees. The company scored highly in all major categories: Management Commitment, Organization for Safety, Policies and Procedures, Record Keeping, Accountability, Training, Qualified Safety Personnel, Motivation and Communications, Client Relations and Subcontractor Safety Administration. Additionally, the recommendations set forth by their findings have been implemented, ensuring that as nc continues to complete some of today' s most complex and challenging projects the company's employees will benefit ftom a Safety Program that is second to none. TRAINING nc is a company that is tIUly Powered by People. The company realizes that it must continue to promote excellence through continuous improvement and innovation by providing our people with the necessary skills and technology to achieve both personal and professional goals. nc is very proud of our training program. Without questionco nc offers one of the finest and most comprehensive training programs in the industry. The company's commitment to training is in excess of$l million annually, offering a state-of-the-art facility dedicated to craft and supervisory training . V ocationaVT echnical Training To prepare a qualified workforce to meet the challenges of TIC' s industrial contracting business, the company has designed and implemented fonnal, fast-track, vocational/technical programs for entry level craft workers, as well as craft upgrading programs for currently employed craft persons. Through fonnalized three and four year programs, TIC prepares highly skilled, dedicated and motivated employees, realizing an immediate return on investment through increased productivity and safer work habits. Programs are developed in nearly all of nc' s major work disciplines. Each program has the following instructional components: 100 to 150 clock hours of fonnal, related and hands-on training at nc' s 14,300 sf training facility in Steamboat Springs, Colorado AMini@ self study related training assignments throughout the calendar year On the job skills training On the job experience In additio~ each craft program encompasses the following: Safety Math Skills nc' s Corporate Culture and Core Values Ethics and Stewardship Non discrimination and sexual harassment practices Productivityt Communications and Quality Construction ManagementILeadership Training In order to increase project management efficiency and to keep management personnel informed about TIC policies, leadmen through project managers are provided training in communications, time management, supervisory styles, human relations, productivity and ethics. Additionally, managers are continually provided training in scheduling, cost control and overall project management. The National Center for Construction Education and Research (NCCER) In addition to the above mentioned programs that have been developed and implemented, nc is an original and on-going member of the National Center for Construction Education and Research (NCCER). The NCCER' s primary mission is to carry out vital construction related research in the fields of safety, training and construction practices. Several of the largest merit shop contractors in the country pooled their company resources to help establish the NCCER and is annually supported by the ABC and the Associated General Contractors (AGC). FINANCIAL STRENGm - In today' s ever changing and uncertain marketplace, it has become increasingly important to note and communicate the financial stability of any organization. TIC is very proud to be one of the largest and most successful privately held companies in the country with the financial strength to support nearly any size project. TIC enjoys a very strong relationship with our banking institutions as well as its bonding company. Financial highlights include (as of 12/31/97): $ $ $ $ $ $ $ Annual revenue of $421 Million Three year average revenue of $446 Million Net worth of $59,305,000 Total assets of $148,806,000 Bonding capacity in excess of$1 Billion in the aggregate and over $150 Million per project Revolving line of credit of $40 Million Dun & Bradstreet rating of5A2, account #15-178-4485 Bank Reference: Norwest Bank 1740 Broadway Denver, Colorado 80202 Attention: Darlene Evans Phone: (303) 861-8811 Fax: (303) 863-6670 Account #: 1010-947-951 Bonding Reference: Fireman=s Fund Insurance Company One Market Plaza Spear Street Tower San Francisco, California 94105 Attention: Mark A. Mallonee Phone: (415)541-4256 Fax: (415) 541-4248 COMMUNITY INVOLVEMENT Headquartered in a small rural community of northwest Colorado, TIC is well aware of the impact a project can have on an area. TIC's philosophy is to have a positive impact on the communities where it works and lives by becoming active and visible in local activities. Examples of our participation may include donations to appropriate community betterment programs such as the DARE program, teen leadership, Little League, local schools and other service organizations. nc has also donated its services such as labor, equipment and materials for community projects. On numerous projects TIC has hosted open houses on site at appropriate times during construction for the project owners, local and state officials, service clubs and schools. Rav.~ ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 Maintenance and Repair Shops Equipment and tool furnish of the rolling stock garage shop Garage shop modules; size to be determined. Include heating, appropriate lighting, spare parts and tire storage, lubricants storage and electrical welding plugs. Outside weather shed for mobile equipment with lights and extension cord connections for engine block heaters. Electric and gas welding equipment Steam "Jenny" cleaner Spare parts, V -belts, oil filters, tire chains, spark plugs, light bulbs and batteries Tires & Tubes, chains, tire breaker, compressor, lift & impact wrench Work benches, tool cabinets, floor jacks, dollies, shop vacuum, tire racks, shelf racks. Jack stands, creepers, trouble lights, flash lights, bench vises, arbor press, light bulbs, show shovels, miscellaneous hand tools, drain pans, parts washer, miscellaneous nuts and bolts bin Hard hats, gloves, cold weather clothing, safety glasses, safety shoes, personal hygiene supplies Fuel pump covered island, pumps, readout and totalizers, lighting and infrared heating Equipment and tool furnish of the maintenance shop Welding and machine shop; size to be determined. Include heating, appropriate lighting, spare parts and tire storage, lubricants storage and electrical welding plugs. Rest room, locker room, tool room, foreman's office and fire suppression 10 ton bridge crane welding shop 16" engine lathe, 10' bed 10" bench lathe, 5' bed 10" post radial drill press Small 5/8 drill press Vertical milling machine Horizontal milling machine Horizontal cut-offbandsaw Vertical band saw (steel) Iron worker 300 amp portable welder engine driven Oxyacetylene welding equipment Steam "Jenny" cleaner 50 ton vertical press Miscellaneous shop items One year supply of welding wire, 2 to 3 sizes One year supply of welding rod, various sizes and grades Bar steel storage rack Steel rounds, square, alloy, etc. F:\projects\AK\rolling stock garage shop Plate steel 3/16, Y4, Yz,3f.. Nuts & bolts, grade 5 & 8 Set of 6" to 12" calipers Set of inside micrometers Safety glasses, hard hats Coveralls, welding leathers & gloves Steel work benches (4) Vises of several sizes Storage cabinets Milling machine attachments and milling cutters Various lathes attachments and carbide cutters Miscellaneous hand power tools Miscellaneous hand tools Miscellaneous instruments Spare parts and storage Miscellaneous shop furniture F:lprojects\AK\rolting stock garage shop ATTACHMENT 6 tQj8w-ZOJde £oq8j- ~8W £OU8f-~8J ~louef ZQAOU-~ooeP ZOJ)fo-j.QAOU "8 'C G) Q. Zodes..l.~ zo6ne- ~odes ~(Hnf-~o6ne zounf-~OInr zor-w-~ounr Wde--~orew ~§00 0 ~ (q) ~BlW ~ ~ ";::'G) 't:'.c. . '0 :g- LL ~ 0 D- o.. 8 + I - . 8 c c ~ to -. c E G) ;;: :5 ~ to 8 E ~ - e LL 0 0.. + - c 0 "i) "5 ~ - LL 00 O~ ..-LL )(.2 t-" ~~..- ~ 0 CX) ~ ~ 0 cO ~ ~ 0 ~ ~ ~ 0 N ~ ~ 0 cO ~ 0 .q: ~ 0 N ~ 0 0 £QJBw-ZQJdB l~eP-louef £ouef-zoqe! £u ..Q.i c.u 'lOlnr-~o6ne ZOd.s-~OI'!O ZDt>lO-LOI\OU lOJde-~orew zofew-~oun! "lounr-~Olnr zo6ne-l.odas ZOAou-~o:>ep "C 0 'C Q) Q.. £oq8j-~8W £Ouef-zoqej ZOO8P-zouef OOAQu-~ooeP ~o-~OAOU '8 l zodes-~OPIO zoBne- ..odes 0 0 ~ >< t- <-' ZOlnr-~o6ne ~ounf-~OInr zorew-~ounr WIde- ~ofew A May 14, 2003 Precision Energy Services, Inc. Corporate Headquarters P.O. Box 1004 Hayden, ill 83835 Attention: Rafal Berezowski, Project Manager Subject Indicative Proposal for Bethel Modular Power Plant Reference: MO92 Dear Sirs: Alstom Power, Inc is please to provide PES with an Indicative Proposal for a Modular Combined Cycle Plant utilizing our 43 MW GTXlOO Gas Turbine. The proposal is based upon the attached documents detailed as Plant Summary, Scope of Work, Emission StLTI1_mary and Heat Balances. Our proposal is based upon Alstom's Standard Terms and Conditions. Typical delivery would be 10-12 months. Our Indicative Price for the Modular Combined Cycle Plant as described above would be $59 Million USD FOB Alaskan Port. Please let us know what other information we can provide to help support your activities on this project. Sincerely, Kevin Hull Business Development Manager Alstom Power, Inc 10305 Viacha Drive San Diego, CA 92124 858-495-0085 858-495-0086 fax kevin.hu11@oower.alstom.com www.power.a1stom.com Page 1 Bethel- 92 MW Modular Combined Cycle Power Plant Summary Description of the GTXIOO Plant The plant is a 2-on-1 non-reheat combined-cycle power plant with a standby GTX100 CT designed to generate approximately 92 MW gross when 2 CT's are operating at 800/0 load. The plant nominal capacity is 116 MW of net electrical power with two CT's and HRSG operating at 1000/0 load. The plant configuration consists of two Alstom GTXlOO combustion turbine- generators, one dual-pressure, fired, heat recovery steam generator (HRSG), and one induction/condensing steam turbine-generator. A standby GTXlOO will be provided as "standby ready". The design fuel is #2 fuel oil. All major components are modularized to the maximum extent practical for quick erection and commissioning while still being transportable. The combustion turbines (CTs) are Alstom Power model GTXlOO firing on liquid fuel. Each CT is connected to a generator driven by the turbine's shaft through a gear reducer. Exhaust gas from each CT passes through a diverter valve system in simple cycle mode and when in combined cycle it passes through an HRSG where the hot gas, which otherwise would be discharged to the atmosphere as waste, is used as heat input for steam generation. The HRSG produces steam at two pressure and temperature conditions - 1100 psia/9S0°F and 87 psia/386°F. The steam produced is routed to a steam turbine generator. The high-pressure steam supplies the HP turbine, and the intermediate- pressure steam supplies the LP turbine. The HRSG also has a supplementary liquid fuel fired duct section. The HRSG is connected to all 3 CT's and is designed to operate utilizing the exhaust energy from any 2 of the 3 GTXl00's. The Alstom GTXlOO Combined Cycle Power Plant proposed for the Bethel Project is a unique configuration with 3 crs connected to one HRSG. Alstom's advanced high-efficiency combustion nIrbine, the GTXlOO, currently produced in ALSTOM's facilities in Finspong, Sweden. The 2-on-l plant configuration has been designed by Alstom for the application of the GTXlOO in a high-efficiency, high-availability base load and intermediate load plant for the North American utility and IPP market. The plant will provide power reliably and efficiently at 60Hz. The GTXlOO turbine and plant configuration have a number of characteristics that are particularly well suited to efficient and reliable service in this market:. The GTXlOO is an advanced combustion turbine that incorporates recent developments in turbine technology. Page 2 The GTXIOO combined-cycle plant, with recent developments in turbine, HRSG, and control systems development, is a notable addition to its market, because it offers a highly evolved and exceptionally efficient plant in its size range. (The nominal capacity of a GTXlOO in simple cycle is 43 MW.) The 2-on-1 combined-cycle configuration - in which two combustion turbines drive generators independently and provide HP and LP steam generated with exhaust heat to drive a steam turbine-generator - is a familiar utility-scale plant configuration. The 2-on-1 combined-cycle plant strikes a typically profitable balance among a number of sometimes competing objectives: convenience of construction, equipment outlays, optimal plant efficiency, and flexibility of operations. The Plant is designed with the flexibility to operate in 3 possible modes. Nonnal: 2 GTX100 @ 800/0 load + HRSG + Steam Turbine to achieve a nominal 92 MW output with a redundant GTX100 with net heat rates in the range of7100 BTU/kW LHV (site conditions at 60 F). Maximum power: 2 GTX100 @ 100% load + HRSG + Steam Turbine to achieve a nominal 116 MW output with a redundant GTXlOO with net heat rates in the range of 6900 BTU/kW LHV (site conditions at 60 F). Emergency: When the steam turbine is unavailable 1, 2, or 3 GTXIOO's may operate in simple cycle to achieve up to a nominal 124 MW output The Plant DCS System The GTXlOO and steam turbine is controlled through an advanced distributed control system (DCS) consisting of an ABB Advant OCS equipment package. The Advant system is designed to provide automated start-up and shutdown of the two GTs and the ST from the control room. The DCS provides supervisory oversight, monitoring, and set point regulation for local controls devices. This supervisory function allows operation of major plant processes and equipment from the local control room via the DCS. (processing units function independently, however, the exchange of signals across the communications network for controls purposes is avoided wherever possible.) Scope of Work The scope that Alstom has considered includes the following: . . . Three (3) 43 MW GTX100 Gas Turbine Generator Packages single fuel #2 Three (3) by-pass stacks with silencer (for simple cycle operation only) One (1) 40 MW steam turbine (common for both GT's) with generator and control system. One (1) supplementary-fired HRSG with Stack. Boiler Feedwater Pump Skid . . The following is optional equipment .!!Q! included in the offer: . Any tailpipe emissions technology . Piping and valves. Electrical equipment with start up and step down transformers, relay cabinets, MCCs . Structural steel with pipe bridge, ST building, etc. . Continuous Emissions Monitoring System . Raw water storage tank . Demin. Storage tank . Cooling tower approximately 200 feet from the steam turbine . Demin water station suitability sized to support the steam turbine cycle . Condensate Polishing Plant . Fire Protection for GT's . Compressed air for instrument air with compressor, filter, dryer, receiver and piping. Civil foundations for GT, steam turbine, tanks, etc. . Underground piping to cooling tower. Steam turbine building. Mechanical erection including labor and tools . Main step up transformers and switchgear, and substations . Electrical installation including labor and tools . Insulation . Foundation support system (no piles or subsurface investigation) . Limited painting . Limited cathodic protection, based on soil conditions . Site supervision . Plant engineering . Project management. Start up and commissioning including lube oil flushing, cleaning & flushing, steam blows and start up support E -0 t-Ut ..I 18( -c G) ~ ca ... U) U) ... .- c ~ 0 ~ -c U)- G) 0 u U) c U) G)~ '- c .! ~ G)c.o ~~ : . (0) "d' 1° Q Q)~-m~10 -II)~~00)~O)c(~ I~ Ii 18 IntUa~~-tUZ"0 i~CDaO)~O)rt~ I~ c Q) ~ 0 u cntUa~~-tUZ-In~~0)0)~O)~T- (f).. c ~ <-' 0 u >-0)1cu 0)1~II)cuC)iU...~-cuZ I~ u ~ "'i.2"i~c IC)UC)Q)C)c~ I~ 18 ~.a"CO :]c I~ 1(.) [(.) 0.cO Q)OLJ..N InCO0~~-COZ CO) ~ IC !G) ~ Q 0 U -50"'01U0~N;- CO)... C QJ ~ 0 (,) 01>01[001ZNr~: . ,...~-.Z C"). c ~ Co? 0 (J 0,(.)0,CD 01ON~0)~~-IUZ M '. 1 u u (/)tVC)"'(ij'-~"iUz ~>0°0ZN CO). 18 II)toC)~~-toZ >'0tV 0,~NI ~~~g ~ 1(7) GTX100 - GENERAL & COMMERCIAL Introduction G~ X100009E ~ 6 Dac.KkId 80 General The GTXlOO has been developed to meet increasing customer demands for highly reliable, clean and efficient power generation equipment Other Customer values, such as Low Life Cycle Cost, plant compactness and short delivery time, have also been addressed. Designed for robust simplicity Reliability is a key customer requirement in this market segment Customers are extremely dependent on the smooth and uninterrupted supply of power and heat for their businesses. In order to ensure reliability in the GTXlOO, its design philosophy has been based upon simplicity, robustness and the use of proven technology. The GTXlOO has a typical ALSTOM frame design with a minimum number of parts in a single-shaft arrangement The compressor rotor and the three-stage bolted turbine module form a single shaft, which rests in two standard hydrodynamic bearings of the tilting pad type. This is a commonly used configuration for ALSTOM's larger gas turbines. The generator is driven from the cold end of the gas turbine which allows for a simple and efficient exhaust arrangement Modularization, few parts, long component life and easy inspection ensure long time between overhauls and low maintenance costs. GTXlOO 3-D Cross-section ALS1tJM ~ ~ AS --:1d.5Type ~): G1X100 (PGSm) ,.2(7)GTX100 - GENERAL & COMMERCIAL Introduction GTku.- X100009E ~ 6 Doc.K8Id 80 Design particulars Compressor section The compressor is a scaled version from ALSTOM's latest compressor aerodynamic design. It bas 15 stages and uses Controlled Diffilsion Airfoils (CDA) for high efficiency. The first three stages have variable geometry. To minimi~e leakage over the blade tips, abradable seals are applied to stages 4-15. The vane carrier of the high-pressure section, stages 11 to 15, where the blades are shortest, is made from a low-expansion material that helps keep clearances to a minimum. The compressor rotor is built up from discs which are welded together into a robust unit using Electron Beam Welding (EBW), a technology used for many years in the GT10 compressor rotor and proven to be a design giving minimmn vibrations and very reliable in operation. Cooling air for the hot sections of the nIrbine is extracted from the compressor at stages 3,5,8, 10 and 15. Combustor section The combustor is of the annular type and is made ftom welded sheet metal. The inner surface of the combustor has a thermal barrier coating which reduces the level of heat transfer and extends the life of the combustor. This design concept has been used for many years in ALSTOM gas turbines. Compliance with strict environmental regulations is already required on many markets and the awareness of environmental issues is spreading to new regions. ALSTOM has recognized the strategic importance of environmental issues and has taken a lead in the control of gas turbine emissions. In 1988, ALSTOM introduced the first so-called EV burner on the market To date, the total accumulated experience with this dry, low- emission (DLE) technology amounts to more d1an 3 million operating hours (as per March 2001), including numerous installations in the GTI0. With the GTXl00, ALSTOM has taken another step in lowering emissions. The combustor has 30 burners of the new Advanced EV (AEV) design developed by ALSTOM. The AEV burner technology, as applied to the GTXI00, has NOx and CO emissions capabilities below 15 ppm (15% Ov on natural gas and below 42 ppm (15% Ov on liqmd fuel without the need for water or steam injection. Dual-fuel dry low emission capability is a built-in feature. Turbine section The three-stage turbine is built as one module for ease of maintenance and bolted to the stub shaft of the compressor. It has an advanced aerodynamic design with a fully 3D- analysed flow path with cylindrical sections over the first, second and third stage blades. The airfoils of first and second stage vanes and blades are cooled, using the technology found in other ALSTOM gas turbines. The first blade is made of single-crystai material to ensure durability and long life. The turbine stator flanges are cooled by compressor air to reduce clearances and improve efficiency. The cold-end drive arrangement allows an optimized axial diffuser section to be fitted for better performance. Particular care has been taken in the design of the diffuser N.STf»A - ~ AS --:1d.IType ~): GTX100 (PG8TO) ~ 3(7) GTX100 - GENERAL & COMMERCIAL Introduction ~ X100009E E.-xI 6 Doc.~ 80 connection to the heat recovery steam generator (HRSG) to min1mise losses in combined cycle and cogeneration applications. Speed Reduction Gear The gas tw"bine is connected to the generator via a speed reduction gear of the double helix parallel type, which reduces the 6600-rpm of the turbine shaft down to a generator speed of 1500/1800 rpm. The variable speed electric starter motor is also connected to the speed reduction gear, via a seIf-synchronising and switcmng (SSS) clutch and a separate starting gear. Validation of design The first GTX1OO was ordered in 1998 and has been in commercial operation since 1999. A number of units have been ordered by customers around the world and are in different stages of the delivery process, i.e. manufacturing in the workshops to commercial operation. Please see Reference List for details. The first unit was delivered to Helsingborg in Sweden and has been used for prototype tests. The tests have included all aspects and components of the gas turbine core engine as well as the auxiliaries, including performance and emission measurements. It has been necessary to modify some components as a result of the prototype tests but the overall result is very positive. All necessary modifications have been introduced and verified in the first engines. The gas turbines in the manufacturing programme will continuously be updated to the latest design. The tests made on the prototype have shown that the design and performance are living up to the high expectations outlined in the original engine specification. Auxiliary systems Lubrication Since the two gas turbine bearings of the tilting pad type use mineral oil, a common lube oil system can be used for the gas turbine, speed reduction gear and generator. Oil pressure is supplied by 3 x 50% AC-driven pumps (2 operating/l stand-by), which are controlled by Static Frequency Converters (SFC's). The pumps will increase their capacity by over 50% in the event of lube oil pressure decrease, avoiding pressure "dips" at pump change. Fuel systems The GTXlOO is capable of operation on a range of gaseous and liquid fuels. Two fuel systems are available, for gaseous and liquid fuels, and in dual-fuel operation automatic switchover between the fuels is possible, in any direction, at full and part load. The GTXlOO is equipped for operation on gas fuel as standard but can, on request, be offered for operation on liquid fuel. ALSTt* p.,... - AS ;:;p;- ~I: GTXI00 tPG8TO) ~ 4(7) GTX100 - GENERAL & COMMERCIAL Introduction GTkoIrtJ« X100009E ~ 6 Doc.~ 80 Control system ~~ AdvftSOOOS ~ .--, :: & 818m"':' L prW1W -..; " ~3IMI COI8a-~,- r '--~ 1 . I :jI ,to; I I I : I "'. GT--P8I8i r 1 I I I I I I I I I- " .. Fieldbu8 AF100 I ~AC1D111 I 1~AC1~ Adv8ntAC1Dq. I 8i! -- . 1 --I I c5~ ~ I I ~ ~[;J! ; I;;I I I I I I I I I I I I It ,if I j'-'---~--;'; ~ I V1br8Iion ~ r ~ I l_- Control system flow chart The GTXlOO control system is based on the Advant system and has four controllers, one of the AC400- and three of the AClOO-series. The AC400-series controller is used for sequencing, interlocks, open loop control and as computer interface to the operator station. One of the AClOO-series controller is used as a remote I/O for the turbine skid signals and as the first channel in the two-cbannel safety system. The second is used for closed loop control for fuel valve positioning and as the second channel in the two-channel safety system. The third is a closed loop control for the generator voltage (A VR). The man-machine interface comprises an Advant SOO-series OperatorStation with a full graphic color monitor. The Advant control system may also communicate with external systems via standard protocols. H.STc.. ~ ~ ~ ~~:1d.I Type (AppIc8IOII): GTX100 (PGSTD) P8I8 5(7)GTX100 - GENERAL & COMMERCIAL Introduction GTI X100009E ~ 6 DO8.~ 80 Installation with typical control room ignition gas tank !!~~d:rJii.Signal treatment room ~rocess control equipment Generator Start motor SFC Start panel ./ .. Fluid fuel panel .Break ,..ister Contn)I cubicle~ Fire conb"ol system Batteries under floor MCC"""'" ./" Chargers Lube oil panel & inverter Control room Standard Simple Cycle arrangement. top view The GTXlOO installation meets stringent requirements for compactness, short erection and commissioning times and ease of maintenance. The gas turbine is skid-mounted, with the auxiliaries grouped in a self-contained module to one side of the main skid. The footprint is only 27x7m / 89x23ft. The layout is basically the same for all applications, whether simple or combined cycle, indoor or outdoor installation. The gas turbine skid is built of steel beams and carries the gas turbine, speed reduction gear and starter motor. It rests on a concrete foundation together with the generator and the foundation may be fitted with spring mounts if necessary. The main and auxiliary skids are covered by a weatherproof enclosure extending from the gear to the gas turbine exhaust. The air intake and exhaust stack are supported by separate external beam StIUctures. A two-stage disposable air filter is supplied as standard, but other options are also available, depending on site requirements. Electrical and control equipment may either be installed in the customer's control room or in a separate enclosure containing an auxiliary power room, a battery room and a control room, see a typical example above. ~ 8(7) GTX100 - GENERAL & COMMERCIAL Introduction ~ X100009E E.-.\ 6 Doc.KkId 80 Generator The gas turbine includes a 4-pole generator of type ABB GBA 1250, driven from the cold end of the gas turbine via the parallel speed reduction gear. It is of simple and rugged design with a salient pole rotor with solid pole plates and a rotating brushless exciter. The GBA-generator design has been well proven in numerous installations with the GTIO. The generator is installed outside the main enclosure. Combined cycle and cogeneration applications In a combined cycle the GTXlOO can be arranged together with a heat recovery steam generation (HRSG) unit utilising the heat in die exhaust gases. A dual-pressme HRSG feeds a single-cylinder steam turbine. This configuration has been well proven in many GTIO combined cycle plants and offers a compact solution with a small footprint For greater power, two GTXlOO units, each with its own HRSG, may be arranged to feed one common steam turbine. The GTXlOO is also an excellent alternative for cogeneration applications, i.e. when only steam production is required. Depending on customer requirement either one or two pressure level HRSG's are possible. Erection and commissioning In order to reduce erection time at site, the GTX100 comes in modules which have been assembled and tested in the workshop prior to shipment Most of the piping and cabling work has also been carried out on the shop floor to minirnise the time required for this at site. The gas turbine, gear and starter motor mounted on the main base frame make up the biggest shipping module. Starting and operation The GTX100 is started by means of an electric starter motor connected to the speed reduction gear. The compressor has two bleed valves at stages 5 and 10, which are open at the beginning of the starting procedure and close during the start-up sequence. The starting sequence takes approximately 13 minutes, plus time for ventilation, which varies according to the installation. During operation, the power output is controlled by manipulating the variable guide vanes (VGV's) and the firing temperature. Initially, the power output is reduced by closing the VGV's until the exhaust temperature reaches 600°C /11 12°F. Further power output reduction is achieved by reducing the firing temperature and closing the VGV's while maintaining the exhaust temperature at 600°C / 11 12°F. When the V GV' s are set to their minimum positions, the power output can be reduced further by lowering the firing temperature. This operation principle gives high part load efficiency. The firing temperature and VGV's are also used to control power output at high ambient temperatures. AI.STOM Poww ~ AS ~~:Ed.ST,.- ~): G1X100 (PG8Tt)) ~ 7{7) GTX100 . GENERAL & COMMERCIAL Introduction Perfonnance In order to achieve a high level of performance, the gas turbine designer has to pay due attention to the intended operating cycle. In particular, the advanced aerodynamic design, the use of abradable seals and low- expansion materials in the compressor section, as well as feamres such as turbine stator clearance control and the axial diffuser, contnoute to the high level of efficiency. Low life-cycle cost Two key elements of the life-cycle cost are the costs of fuel and maintenance. They have therefore been considered at the design stage of the GTXIOO to achieve low costs for the operator without sacrificing basic reliability and availability. The basic robustness and simplicity of the GTXlOO and an optimised maintenance schedule mean that the maintenance cost is very competitive. Designed for ease of maintenance The GTXlOO has a number offeamres that simplify maintenance and inspection. One side of the gas turbine has been kept "clean", avoiding unnecessary piping, cabling and connections to allow for easy inspection. Borescope ports are available on the clean side for inspection of compressor stages. At the front of the inlet chamber, I manhole with transparent and reinforced polycarbonate window provides for easy inspection of the compressor inlet bellmouth. The compressor casing is vertically split in the longitudinal direction, which allows half of it to be removed for easy access to the rotor and stator parts. The rotor centerline is 1.5m / 5ft above the floor, making inspections very convenient The burner section design allows each of the 30 AEV burners to be removed individually without dismantling the machine. It also provides for easy inspection of the combustion chamber. An overhead crane is installed inside the gas turbine enclosure to facilitate maintenance and enough space is available to allow operating personnel to walk around the machine. For flexibility, the gas turbine can be removed from both sides of the installation. The walls of the enclosure may also be removed easily, if required. EcO1Wmical production of heat and power A Combined Cycle Plant type KAX 1 00-1, Blackburn, England. such as autOmanc ~-up. Oper3tioo, satel)' functiol1S etc. Civil works, auxiliary systems, switch- yards, transforn)CB, cool~ etc coolpkte the supply. Combined cycle power generation Wid1 me iru1owcion of the combined cydc, ~ ~ "graduaa:d" nonl typiCJJ pcalcing pO'-YCT generators to bath m<:diun1 and \);1SC load applicacions. ALSTOM !;IS mrbincs 3~ dcsigncd for hc3\'Y--.iJ.1tY and Jong continuous opc-r:lrion, maJcing d1em c:spcciaDy suica~ for ~ k>ad powt:r opcotion, Our c0m- bined cyck plan~ can attain net dflciencies O\-er 54% ;md they retain high efficiencies over long periotk ()( time a.1d at pan loath, ~r.a1 of the A~IOM gas wrbinc n\Odds use both ~ and liquid fuels and can, in d1e (.~ of duoal fuel, 3Uto1naticilly switCh /tan one Cud to another during oper:ttion. Th: i11m)(jUcUol1 of d1e GTXl() ~ tutbiJll: i~ die ~ cOtn- bint.-d cycle output while further im- proving cfficicncy and enviromncnal pcrfornuncc. Wl}el1I:'fer ~u need ;l low life-cyc;k cOst, ctficicnt :1nd cnvironmcnully sound soh.1tion for yo~lr hcat and po~ gcn~-racion needs - a solution that an ~lso be used in dcmcly popuJatcd surroundin~ - an ALSTOM combined cyclc J'bnt will ~ the better choice. Combined cycle plants KAX100-1 and KAX100.2 ALSTOM combint:d (.-ycle pl:mts consist of St;mdard1sed modules prcpared [or cogellcrauon and combined cycle Power GTX 100 performance in com- bined cycle GTX 100 is the latest addition to AL')TOM " succ<.'SSful tauwy of indust- ri2l ~ turbines. It combines the reI~- bility and robustncss of an industrial design widt me high efficiency and low ~mion levels of mc lacot tUrbine technology. The GTX 1 00 g:ts turbine is optimised for combined cyclc opcrarion and itS inherent simplicity hclps keep mainten:mce costs at ;1 minimum. With a I:1ted output of 43 MWe it "viJl produce a total of 62 MWc togctber "vidt a non-reheat condensing starn turbine. The resulting overall electrical efficien<."y "viII in mis QSC be 540/0. 1 1 ~ I- -I 2 I . 1 f I J .. 1 ~ I 1 I I J .. I ~ I t" . l{ il ~ I ~ i i I f ~ 1 J I 11 . i ~1 . c !1 -0 I . - ~ I . f . 1- = 1 ~ . 11 - 1 if J! - !J 13 !i ALSTOM Power. SE.612 82 Finspong Sweden. Tel: +46 12281000. Fax: +4612216580. www.power.alstom.com ALSTOM Power UK Ltd . P.O. Box I, Watenide ~, Lincoln lN5 7FO, England . Tel +4.4 (0) 1522 584000 . Fax +44 (0) 1522 584900 WWWonwN~~ ATTACHMENT 7 of( ~a.. m a.. of((:) a.. ""CO..-0t- 0 V ~ a N <D 0 V ~ co r ~(,0 0 N 0 CO N 00lC) oIc -It -It 06+JC:Jo(,) Q,)c.- C> C W . c°.- +J CO U) '- '- :J Q,)c>..c tt= E C :J 8 C uU c-C-I I o o +J+J U)"'C"'C ~~~ CQ,)"'C:J > co ""Q) C C U) "'C o Q,) Q,) ° (,) Q,) .5 Ec..cC> @~oa5ccQ,) Z Q,) Q,) U)- > > co ~ co co Q,) C-..c..c""Q; U).!!l~"'C ~ Q,) :J :J co"'Cou N°..cc U)Ec>'.:: Q,),-4'"Co "'C""'~c ..2~~U) (,)~Q,)Q,)C -.. a. ° - ,,~ ° 0 -IC -IC -IC C>'- c: Q)0- ~ 1U 0 ~a.. --0CO Q) c:--0- CO C>'-°L: C- o:) "- '- 0 0 (/) (/) ~ ~ ..c..c E E 0 0 Uu"- "- CO CO "5"5c: c: c: c: <C<c Q) Q) "'6>"'6>c: c: 0 0 Ci5 Ci5 ~ I I --<CU ~a..a.. ~~ .- - = c .c 0 ..! cn .- Q) ca C) ~~ "C (J C ca caD.. ~w =~ .c I ca Q) = C) ~ ~ Q) Q) > .5 II(( .cC) '- c ~ .- .-= cn 0 ca£t: ~.c ... 0 c 0 0 ~~ ~N ..J~ ~a)0)0) 0 0 ~ ~a)a> ~ m ~ co m JU8:>J8d i --I- ~ 1 v0> ~ N 0) --i 1 -- Oo..iI" 0 "" m ~o..V/)1' Cb'Q'~ ({)"O)&Q LO'ol~ ~ to..iI; '/}/' C'O'J~~ E'O'J~ ~ 10,«~ to,,\? 9Q ~'(f~ ~~Q 'Q ~ D- C/) ~ m ~ s .Co C) "C '< ~ ~ 0 ~ j ~ C') 0 0 N .2;t ~ -') .- N ~ C) ca a.. - c e u.. c 0 fn C 0 ~ u "C - fn G) ~ 0 .- - u G) ,- ,g = (/) c 0 ~ ca E ... .g .5 ~ ca - G) .~ a.. e a.. w ci MW~D..~Q).s 0.e ~~~s.-=.§ :8 0 - c ~~ .- - = c .c 0 ca = cn ~ G) ~~ ~ "C C.) C ca cao.. ~w ... =~ :s I .m G) -C) G) ca ~ ... ~G) 'E~ 0 C) G) C C)= ca- ~ 0 C.)~ ca.c, 0 0 c 0 0 o~ CON ~~ -J 0 0 ~ «)Ll)('8«)o)~0)0) (X) m :1 ~ CD 0> 1 ~~ t JU9:>J9d ..qo m - ~ ~ = == :c ..0 tV tV = ~ ~ ~~ c: c: 0 0 Q) Q) 0> 0> ~ ~ (..) (..) m tV a.- a.- N 0> 0 0>O~iI/)1' O0-0q9.s' 'Q io.{J, 'IJ" ~O'JQ ~ ~o..ltl)f' ~o~ "9~ ~o".) 'c9Q l'O"./e ~ iO'Je;~ L°'VQ'Q ~ Q. (/) "i ~ i ! ¥J .c C) "t: :'( i 0 a; e: ~ 0 (/) CO) 0 0 N ~ ~ -, ~ N GJ ~ ca a..-c e i&. c 0 fII C 0 ~ U .~- : ~ 0 I- - u G).- ,g = cn c 0 ~ ca E .2 ..5 ~ SGJ"C Co e a.. LLj ~ .w~<Ca..~~Q~~cId S.~j i ~"5 ~ e ~ ~ "- ~ .- .Q cu "- -- G) a: I ~ .e ~ G) (..) ~ "- C1) G) Q 0) ~ "C G) G) ~ "- 0) t: UJ ~ ~ 0 0 ~ g ~ CX) 0) I"-"-0:I"-m co0> -- .- IU8:>J8d ~ v0> ~ N 0) ! ~ - - ~ ~ - - b >- .- - - == :s .c tU " = ~ g Ik: « G> G> C) C) - tU tU -- ~ ~ () () tU tU a.. a.. I I " . - - -- Q 0 '0-1.11}; m r' ~ ({)'Q'~ ({)""Q 'Q iO'J~ ~ tOol/; 'I)" ~o~~~ ~o.(I; ~ to,~~ LO'\?; ~ ~'Q'~ ~"'Q 'Q l'O'JQ ~ i(/) . . '0 ~I I ! ¥J .c OJ 'c ~ i 0 ~ :] 01 (/): CO') 0 0 N >- "5 .., .. N G) Q ca Q. - c e LL C 0 U) C 0 '.fi 'C -;n G) ~ 0 I- - u G) .- .Q ~ U) C 0 ; ca E .. .2 .5 ~ ca - G) 'C Q.. e Q. u! 0 10W0<c..~oSci~~s.,t~Jc Q.'t5 ~ e ~ ~ "- ~ "- .Q cu "- ~ a: I '-- .2 i Co) §,"- ~ Q 0) t: "t: Q) Q) t: .- t1') Lfi ~ ~ 0~-I Q) I- c.. ~ ~ (OW') ~ (.) a. I (..)Q.~:t +.~t:(.)Q.Q.CI)-I S:~~to..:~ S: ~ c ~ ~ I ~ (I) ..3 ~ ~.~ Q .(1) - ~~ I UJ -J Q ~ I ~ i I §.. 8 0 8 §. ... ~'-d §.. 0) ~ ~ 00°aIn0) """a In 00O)a,...,... § N I ~ 0 ~ 0 ... Q)(.)~ Q)Q) .5 ~.~ I- ~~ .cOQ) C)~::E~ cn ...Q) 5Q) ~ u: j u.. ~ ~ a: 'c a.. ~ C/) It) ,... +000-00 0- ~ +°0°aIt)N ~ ~ ~ ~ ~ ~ N ~ ci ~ ~ It) It) N N In In Q) Q) ca ca (/) (/) w w <-' <-' Q) Q) ... ... - .- = = co co c c w ~ -J - C ~ I I In In ca ca 0 0 E-CJ)I cn ca <-' ~ M ~ It'); CO) oqo It) N In Q) ca (/) w ~ ! .- ~ co c - w .. -! - 'il ~ C" C" ~ ~ ~ CD; 0) M M ~ ~ In 0 ~ oqo M ~ N 0 ~ ~ II) II) Q) Q) "C6 "C6 (/) (/) w w (,? (,? Q) Q) ... ... .- .- ~ ~ coo coo c c Q)E In.- ...I- ~.c 0C)~~In...~0~ - Q) Q) u.. In ~ C ~ ~ t""" f ~ :- :~~~: 0 it) 0 ~ It') ~ 0 N it) N 0 M u0It')M 0 0 0 N It) ~ 0 0 0 0 U) . t * I I ,. i +-] i 0 0 0 = .qo 0 0 0 <D ~ cnI-Q)--.-..cu 0 0 0 0 0 0 0 0 0 0 0 0 ~ N 0 = ~ ~ ~ M (aM~)JaMOd 0j.1!c.~~ 0 0 0 CD CO) 0 c 0 .qo CO) (.)c..I000.'~ 0 0 0 N M 0 0 0 0 M 0- ,... LL 0 e ~- CU ... G)Q, oE CDG) I- - - I ~ fn >< G) 0cn.Q Z 0fn::: In .2,aE--Q, fn""Q,LL~0U)Q.CUONO)..c ° - '1 )(0)->°1 G) ~ ~I ~o>'!~ 0~£~'fi= ... "C ..J . .-. CUM! E.5":' O~ ~ G)- ~ ~CD~CN .~ LL 0 ~ !"G) ~O ,_fnUCD - ~ C CU A. ~0G) CU .- ," .- fI) >-0-2'> M G)S N"i-C-' ..J~~"""- CU~C,aS> G) 0'- CU CU 0 (/)CDnZ~Z ° N r o 0 0 = N 0 ~ 00)00- ATTACHMENT 8 MAN B& W Diesel Canada Ltd Our Ref: EI/9335 Precision Energy Services, Inc. 10780 N. Highway 95 Hayden 1083835 Attn: Ratal Berezowski - Technical Director April 3, 2003 Subject: Crooked Creek Diesel Power Plant, Alaska Dear Sir 1 In response to your recent request for a 70 MWe power plant and heat recovery system, we now have pleasure in attaching hereto our budgetary proposal. This includes both pricing and technical information on the equipment proposed. The engine we are offering is the MAN B&W Diesel, 18V48/60 that would be capable of producing 18,900 kWb continuously when operating at 514 r.p.m. Coupled to the engine would be an alternator which, when wound for a 13.8 kV, 3 phase, 60Hz supply, would be capable of delivering 18,427 kWe, 23,033 kVA at 0.8PF. The proposed power scheme compiles of 4 units in operation, 1 unit in hot standby & 1 unit in cold standby. MAN B&W Diesel offers a complete range of appropriate generating systems. Our four- stroke engines are available for power plants with engine outputs of up to 23,850 kW. The Diesel engine provides the highest thermal efficiency and permits the most economical conversion of primary energy into electricity. The specific fuel consumption of the engine is 176 g/kWh at ISO conditions. Regarding emission, the Diesel engine produces NOx emissions in a concentration of 1920 mg/Nm3 at 15% 02 which equals more or less 940 ppm. Power plants equipped with modem MAN B&W four-stroke Diesel engines offer the following principal advantages: - Low capital investment - Easy and cost effective installation - High thermal efficiency - Capability to bum arctic fuel oil - High reliability ~ B&W DIesel Canada Ud 355 Wyecroft Road 0akvIIe . Ontario Canada L6K 2H2 Tel: (905) 842-2020 Fax: (905) 842.2025 www.ma'lbwltd.com 1 J~:~~(=~=\ Easy to extend High flexibility to meet load demand Low maintenance requirements MAN B&W Diesel is a leader in the field of power generation with over 10,000 MWof installed capacity worldwide. Our Canadian organization, which has been in operation for over 45 years, has built more than 80 diesel power projects. More than 15 of these are mining companies, and most of them located near the Arctic, like the Kennecott - Greens Creek Mine in Alaska. This demonstrates we have vast experience in sub-zero temperature design aspect & equipment application. For your information, we are ISO 9001 registered on quality assurance, and engaged in power design, application engineering, project management and after-sales technical service & support. When reviewing our budgetary offer, kindly consider the following information about the relevant design, scope and services: 1. The engines will be transported completely assembled as shown in the transport drawing No.4 (engine assembled and placed on the frame) in PART 7 of this proposal. At Alaska harbour (e.g. Goodnews Bay) all the sets will be unloaded by the shipping crane in order to move them on a lowbed trailer onto a suitable barge and transport them to the site. Dismantling and re-assembling of the engines and I or placing the engine(s) onto the steel foundation frame(s) in the Alaska harbour or even at site are not included at this stage. 2. Six diesel fuel oil storage tanks with a capacity of approx. 18,000 m3 each are provided to fulfil the storage capacity of 27 million gallons requested in this proposal. The tank farm for the diesel fuel oil has a size of 177 x 126 m2, added by a size of 20 x 16 m2 for the lube oil storage tank (387 m3) and two sludge tanks (each 10 m3). We assume, that the diesel fuel oil will be transported in the summer time to the site by suitable ships. The unloading dock at Kuskokwin River, and all facilities for fuel and lube oil is presently not included in the quoted scope. 3. With regards to the several diesel fuel oil specifications supplied and the estimated heat supply in hot water requested in the RFO, we concluded that no exhaust gas boiler is necessary (i.e. all the heat can be supplied by the waste-heat of engine cooling water). For safety reasons a small auxiliary boiler is included. Heating piping and accessories for heating purposes outside the power plant, such as central heating of Crooked Creek housing and public buildings is not included. . We assume the power plant is feeding its electricity into the grid as in running in parallel to the grid. Island operation is not assumed. . The NOx-reduction plant is not included in this offer at this stage. As discussed previously, the SCR catalyst can convert the NOx to a value below 25ppm for 19,000 operation hours, then the first row of the three ceramic rows has to be exchanged to 4 5 2 .~~:~~(=~=\ reach again the conversion figure. The urea consumption of a 40% solution is 434.5 I/h at 100% load, for pure urea the amount is 193.3 at full load. The budget price of the combined SCR and oxidation catalyst is EUR 667,000 per engine, delivery in 2003 CIF Alaska. The price does not include urea tanks for storage or mixing, installation, piping and an air compressor. As for the reduction of the NOx emissions with water emulsion we identified one company in Germany producing the additive "Span 80" (so called Sorbitanmonooleat). The price is approx. $3.5 US/kg, and approximately 0.5 to 1 % is required for the fuel-water emulsion as an additive, a mixing device has to be installed. Should you find a requirement for any further information, or clarification of this proposal, please do not hesitate to let us know. Your Contacts: Roger Noseworthy - Director, Sales & Marketing Tel: +1-905-842-2020, Ext 246 Fax: +1-905-842-2025 e-mail: moseworthy@manbw.ca Achilles Cheng - Tendering Manager Tel: +1-905-842-2020, Ext 244 Fax: +1-905-842-2025 e-mail: acheng@manbw.ca Josef Domer - Technical Sales Support Tel: +49-821-322-3239 E-mail josef_domer@manbw.de Sincerely I ~I" c.c. Chris Walker 3 \ Roger Noseworthy Director, Sales & Marketing MAN B&W Diesel Canada Ltd BUDGETARY PRICE SCHEDULE Pricing We quote for the Diesel generating equipment stated under Section 4 "Scope of supply" of the enclosed Technical Specification, without the mentioned options, including complete erection, testing and commissioning. Budaetarv Prices: Power Plant, without tank farm USD 65,600,000.00 USDTank farm, incuding civil works 30,500,000.00 Optional equipment Some items in the above mentioned Section 4 "Scope of supply" are quoted optionally: Engine wear parts for the first 8,000 operating hours Budgetary Price: USD 302,700.00 Engine diagnosis system 'CoCoS EDS' and software. Budgetary Price: USD 124,500.00 Transport DDU The above stated prices are valid for delivery FOB European North Sea port, in accordance with INCOTERMS 2000, including seaworthy packing. As an option we quote for delivery DDU to Crooked Creek Site, in accordance with INCOTERMS 2000. The equipment would be reloaded onto barges in a seaport at Alaska, for instance in the Goodnews Bay. The barges would be shipped on the river Kuskokwin to Crooked Creek. Budgetary Price: USD 5,818,000.00 This optional price for delivery DDU (Delivery Duty Unpaid), is calculated according to the freight rates which currently apply and is for guidance only. We suggest that in the event of an order being placed, you will settle the freight costs at the time of delivery, as they will incur. 1 Price conditions The budgetary price is in USD for delivery FOB European North Sea port, not stowed, in accordance with INCOTERMS 2000, including seaworthy packing. The budgetary price is calculated for delivery of equipment not later than May 31st, 2004 and for completion of commissioning latest by December 30th, 2004. Assuming an order is placed before the end of June 2003. The budgetary price is net. Public fees, such as taxes, customs duties, stamp fees etc., which arise in connection with the signing of the contract or its execution, and which are to be paid outside Germany, are not included in our price and would have to be borne by the customer. Value added tax is not included and would be charged in addition as actually levied by law. All our submitted documents form an integral part of our quotation. Variations in quantities or technical modifications of the quoted extent may result in adjustments of price and delivery time. Terms of payment We have calculated our price on the assumption that payment shall be effected out of an irrevocable letter of credit, free of charge to us, confirmed by a German bank acceptable to us. The price is payable as follows: - 20 % down payment after placement of the order - 80 % against usual pro-rata shipping documents, latest however 30 days after notification of readiness for despatch, in case shipment is delayed or becomes impossible for reasons beyond our control. The letter of credit is to be established in our favour immediately after signing the contract for the full contract amount minus down payment and must allow part shipments and the shipment on deck of IMDG goods (= dangerous goods) which, as a rule, are contained in our deliveries (for example sealing compound, paints). Shipment of such goods below deck is not permitted by the Seafreight Ordinance. We are quite prepared to discuss alternative payment conditions. Warranty The period of warranty shall be 1 year after the equipment is put into operation. In any case, it shall terminate 18 months after delivery FOB or after notification of readiness for shipment has been given. Delivery time MAN B&W Diesel is presently able to offer the following delivery schedule: 6 engines + 6 alternators: approx. 9 months Diesel auxiliaries: approx. 8 months Control panels: approx. 6 - 8 months 2 The dates are to be understood as delivery ex-works. Delivery time to start with coming into force of contract, full clarification of the order, completion of possible financing arrangements and receipt of down payment, whichever is later. A more detailed and binding delivery schedule and a time frame for project completion can be worked out when the project takes more concrete forms and the overall time frame is known. Conditions Our offer is subject to the General Conditions of Delivery AL 92e Conditions for Specialist Personnel Services BF84e General Conditions of Supply and Delivery for Products and Services of the Electrical Industry Export Control This proposal, respectively the fulfilment of the contractual obligations, are subject to the granting of any export permits necessary and that there will be no contradiction due to German or other regulations which have to be observed. The above price can be considered firm as far as material and labour costs are concerned. We have used a currency exchange rate of 1 EURO = 1.0734 U.S. dollars and 1 CON dollar = 0.6776 US dollar. Any change in these rates, either up or down, at the date of issuing a purchase order, would be for Client's account. Exchange Rates 3 A92e I. General These Conditions shall apply unless otherwise agreed in writing by the contracting parties. /I. Quotations and Conclusion of Contrad 1. All quotations shall be subject to confirmation. 2. Technical particulars and data on weights, performance, operating costs, etc. shall not be binding unless expressly stdted. MAN B&W Diesel Aktiengesellschaft (MBD) shall retain ownership of and copyright on quotations, drawings and other documents. Such quotations, drawings and documents shall not be disclosed to third parties and shall be retumed immediately if so requested, or if no order is placed. 3. These Conditions shall also be deemed to have been accepted by the Purchaser when he accepts deliveries and services of MBD or renders services himself. 4. Other terms and conditions shall not become part of the contract without the written consent of MBD, even if they are cited as contrary to these Conditions. III. Extent of Supply 1. The written confirmation of order by MBD shall be conclusive for the extent of supply. Additional under- standings and changes shall be subject to the written confirmation of MBD. 2. Electrotechnical material shall be governed by the conditions issued by the Verband Deutscher Elektro- techniker. 3. If the equipment supplied shall be used outside the Federal Republic of Germany, safety devices shall be supplied as agreed upon. 4. In the event of commercial terms being agreed on the method of delivery they shall be construed in accordance with the Incoterms issued by the International Chamber of Commerce, Paris, in the word- ing as valid on the date of signature of the contract. 5. Any taxes or other dues or charges payable in the Purchaser's country or in the country of destination in connection with the deliveries made shall be borne by the Purchaser. IV. Prices 1. Unless otherwise agreed, the prices shall be valid for delivery ex works inclusive of loading at the works, but exclusive of packing, freight, and installation, plus any percentage of value-added tax as fixed by law. 2. The prices are calculated on the basis of the costs as prevailing on the date of the quotation. The right of price adjustment shall be reserved in the event of changes in the material prices, wages, freight costs, or other cost factors. 3. The prices are based on the following mode of payment One third on placing the order, one third after expiry of the first half of the delivery period and the balance when the equipment is ready for despatch. V. Terms of Payment 1. All payments shall be made in cash, without any deduction whatsoever and payment shall be effected on the agreed dates to the bank intimated by MBD. The value-added tax shall be payable upon receipt of invoice unless the advance payments are liable to tax, in which case it shall be payable pro rata on the dates of payment agreed upon. If payment by bills of exchange has been agreed upon, such bills of exchange will be received by way of fulfilment. 2. Counter-claims not recognized by MBD shall not entitle the Purchaser to withhold or offset payment. 3. In the event of the stipulated date of payment being exceeded, MBD shall - without prejudice to any other legal claims - be entitled to charge annual interest at the rate of 5 per cent above the basis inter- est rate of the European Central Bank, plus any value-added tax, without any reminder being required. A92e -2- -' S='W - 4. If the Purchaser defaults in his obligations of payment or his obligations arising out of the reservation of title or if there is any substantial deterioration in his financial situation or if he should suspend pay- ments, the entire balance shall become due immediately, inclusive of bills of exchange having a later maturity. VI. Reservation of Title 1. The equipment shall remain the property of MBD until all claims arising in connection with the contract have been fully settled. This shall also apply if such claims are included in a current account a) Any processing or converting of equipment, the title of which is reserved or the combination of such equipment with third party material performed by the Purchaser or a third party, shall be performed on behalf of MBD. MBD shall be the co-owner of the new equipment arising out of such processing or converting or combination in proportion to the value of the equipment. b) As a security for the claims of MBD the Purchaser shall assign to MBD his demands from the resale of the equipment up to the amount of such claims. c) The Purchaser shall be authorized to collect his demands. The right of collection by MBD shall be reserved. d) If the Purchaser fails to comply with the contract, particularly if he defaults in payment, MBD shall be entitled to withdraw and the Purchaser shall be liable to restitute the equipment supplied. The Purchaser shall be liable for any damage arising in connection with the retum of the equipment In the event of the equipment having been used, MBD shall be entitled to charge the Purchaser a de- preciation of 25% for the first half year of use and 5% for any further half year commenced, without having to prove the damage sustained. If the law of the country to which the equipment is supplied does not permit a reservation of title but allows the supplier to reserve other comparable rights, MBD shall be at liberty to exercise all such rights. The Purchaser shall undertake at his cost, all such measures as are necessary to render effec- tive and maintain these rights to the equipment supplied. 2. During the period of reservation of title or any other right in accordance with subclause 1 above, the Purchaser shall insure the equipment against all relevant risks, with the proviso that MBD shall be enti- tled to all rights arising out of the insurance contract The policy and the receipts for the premiums shall be presented to MBD upon request. 3. The Purchaser shall advise MBD immediately of any distraint or other impairment of the owner's inter- ests. VII. Delivery 1. The delivery period shall not begin before the receipt and clarification of the documents and approvals to be fumished by the Purchaser and not before the receipt of an agreed advance payment The delivery period shall have been met whenever the advice of readiness for shipment is sent to the Purchaser prior to its expiry. 2. The delivery date shall be reasonably extended in cases of force majeure and unforeseen events aris- ing from circumstances beyond the control of MBD, such as strikes, lockouts, stoppages, rejections, delayed delivery on the part of subcontractors or other delays beyond the control of MBD, provided that such events affect the timely performance of the contract This extension shall also apply if there is al- ready default in delivery. In important cases MBD will notify the Purchaser of the beginning and pre- sumable duration of such events. The delivery date shall also be reasonably extended if the Purchaser is in arrears with his payments and other obligations, or if technical and commercial questions are not clarified within a reasonable period of time. 3. If a delay is proved to be due to reasons other than those specified in subclause 2 and the Purchaser has suffered a loss on account of such delay, he shall, to the exclusion of any other claims, be entitled to claim a compensation for the delay at a maximum rate of 1(2 per cent for each full ~k of delay, but not exceeding 5 per cent of the contract price of that portion of the total supply which by reason of such delay cannot be used in time or put to the use intended. Any compensation payable by MBD un- der this clause shall be balanced at the time of final settlement. A92e -3- 4. In the event of despatch being delayed for reasons beyond the control of MBD, the costs arising from the storage of the equipment will be charged to the Purchaser. If stored at the works of MBD, a mini- mum of 1/2 per cent of the invoice amount will be charged for each month, beginning one month after notification of readiness for despatch. VIII. Passing of Risk The risk shall pass to the Purchaser when the consignment has left the supplier's works. If shipment is delayed for reasons beyond MBD's control, the risk shall pass to the Purchaser upon notification of readi- ness for despatch. IX. Performance of Contract 1. Delivery shall be considered as having been completed when the risk passes to the Purchaser pursu- ant to Clause VIII. 2. Partial deliveries shall be permissible. 3. After the date of completion MBD shall be liable only in accordance with the provisions of Clause XI. of these Conditions (Warranty). 4. All supplies, even those showing immaterial deficiencies, shall be accepted by the Purchaser, without prejudice to the rights under Clause XI. X. Installation If the equipment is to be installed at site by MBD, this shall be specially agreed. In such case MBD will carry out the Installation of the equipment in accordance with their General Conditions covering Installa- tion. XI. Warranty 1. a) MBD shall warrant expressly assured properties as well as faultless design, manufacture and mate- rial. Parts which by reason of defects have become unserviceable or the serviceability of which has been substantially impaired shall, at the option of MBD, be reconditioned free of charge or MBD shall supply new parts. Such new parts shall be supplied at the cost of risk of MBD and delivered to the European destination or European port, customs duty unpaid. Extra costs for airfreight and ex- press deliveries shall in any case be borne by the Purchaser. b) Any failure of Diesel engines to meet the warranted performance and consumption ratings may only be proved by an acceptance test carried out at the supplier's works. Unless otherwise agreed, such acceptance tests shall be carried out in accordance with applicable ISO regulations in force on the date of the tests. Classified marine engines are, in addition to be above provision, subject to the respective rules and regulations of the Classification Society agreed upon. Engines not normally subject to an acceptance test shall be tested at the Purchaser's request and expense. In the event of Diesel engines failing to meet the performance and consumption ratings during the acceptance test, MBD shall, to the exclusion of any further legal consequences, alter or replace at their option such engines at their expense within a reasonable period of time. If the warranted per- formance and consumption ratings are still not reached after such alteration and replacement in- cluding consideration of the usual tolerances, MBD shall pay for each per cent of reduction in per- formance or of increase in fuel consumption, as against the warranted ratings, a penalty amounting to 1/2 per cent of the value of the respective engine, but not exceeding a total of 5 per cent of the purchase price of the engine concerned. c) MBD shall warrant any subsequent adjustments and replacement parts installed to the same extent as the original equipment Parts that have been replaced shall become the property of MBD. d) The liability of MBD for bought-out products that have not become an integral part of the manufac- tured object shall be limited to the assignment of the warranty claims that MBD may have t<7Nards the subcontractor. MBD shall, however, warrant such bought-out products if their selection or di- mensioning was incumbent on MBD and turned out to be faulty. A92e -4- MAN B:'W' 2. The period of warranty for machines shall commence on the date on which the equipment is put into operation. For marine engines it shall commence on the date of acceptance of the ship. In all other cases it shall commence on the date on which the equipment is ready for handing over. It shall termi- nate 6 months thereafter. In any case it shall terminate not later than 15 months after notification of readiness for shipment has been given. The warranty period for subsequent adjustments and replace- ment parts shall terminate at the same time as that of the original equipment. 3. For the execution of necessary subsequent adjustments the Purchaser shall a) grant the required time and opportunity and b) fumish at his own expense auxiliary labour and equipment and perform any incidental work. The cost of any work carried out beyond regular working hours shall be borne by the Purchaser. 4. The warranty shall not cover normal wear and parts which, owing to their inherent material properties or the use they are intended for, are subject to premature wear. Damage caused by improper storage, handling or treatment, overloading, the use of unsuitable fuels, oils etc., faulty construction work or foundations, unsuitable building ground, chemical, electrochemical or electrical influences or any other circumstances which may arise through no fault of MBD alter the passing of the risk shall also be ex- cluded from the warranty. 5. The Purchaser may only claim the MBD warranty if a) the equipment was installed and put into operation by MBD personnel, b) MBD have been advised in writing of the claimed defect immediately, but not later than two months after expiry of the warranty period, c) the Purchaser has observed the instructions issued by MBD in respect of the handling and mainte- nance of the equipment and, in particular, has duly carried out any specified checks. d) no subsequent adjustments have been carried out without the approval of MBD, e) no spare parts of outside make have been used. 6. Claims shall become barred at the end of six months from the date on which due notice of the defect has been given. 7. Moreover, see clause XIV., XII. Right of Purchaser to terminate the Contract The Purchaser may terminate the Contract by notice in writing provided that 1. the performance of the contract by MBD has become entirely impossible. In the event of partial impos- sibility the right of termination shall be subject to the Purchaser proving that the partial delivery is of no interest to him. If the impossibility occurs while there is default in accepting delivery or owing to a fault on the part of the Purchaser, the Purchaser's obligations under the contract shall remain. It the impos- sibility is beyond the control of either of the contracting parties, MBD shall be entitled to remuneration corresponding to the work done. 2. the Purchaser is entitled to claim penalty in accordance with Clause VII subclause 3 in the full amount and has thereafter granted in writing a reasonable period of grace to MBD with the express statement that he would terminate the contract after the fruitless expiry of this period and can prove that the set period of grace has been exceeded for reasons other than those mentioned in Clause VII subclause 2. 3. the Purchaser has granted in writing a reasonable period of grace for remedying a defect recognized by MBD and for which MBD are at fault in accordance with Clause XI with the express statement that he would refuse to accept the delivery alter the expiry of the set period of grace and MBD have de- faulted in observing this period. 4 In the case of subclauses 2 and 3 the Purchaser may terminate the contract only if he can prove that his interest in the delivery is substantially impaired as a result of the delay or defect. 5. Moreover, See clause XIV. A92e -5- XIII. Right of Contractor to terminate the Contract MBD may terminate the contract in part or in whole if unforeseeable events considerably change the commercial importance or the scope of the services, or materially affect the operations of MBD, or if the economic situation of the Purchaser should undergo substantial deterioration. This shall also apply when an extension of the delivery period has previously been agreed with the Purchaser. In the event of MBD desiring to exercise the right of termination, MBD will notify the Purchaser immediately after the signifi- cance of the circumstances has been ascertained. XIV. Extent of Purchaser's Claims MBD shall be liable for any damage caused by their officers and executive employees either intentionally or by gross negligence. Furthermore MBD shall be liable if, either intentionally or by gross negligence, servants and agents violate principal contractual obligations. Additionally MBD shall be liable to the full extent under the provisions of the German Product Uability Act. Irrespective thereof MBD shall be liable in all those cases covered by the manufacturer's liability insurance maintained by MBD, and to the extent indemnity is paid under this insurance. This manufacturer's liability insurance is govemed by the General Conditions of Uability Insurance (AHB).In case MBD fail to comply with stipulated qualities they shall be liable for any damage caused to the goods supplied. For any damage not caused to the supplied goods themselves, however, MBD shall be liable only if this stipulation was made for the very purpose of protecting the purchaser from the damage occurred. Stipulated qualities are those expressly specified as such in the text of the contract. To the extent MBD are liable for gross negligence under subsection 1 clauses 1 and 2, the extent of this liability shall be limited to any damage directly caused to the supplied goods themselves. Any further claims except those specified in these Conditions or covered by the text of the contract shall be excluded. This shall particularly apply to more extensive contractual or statutory claims for damages. xv. Contractual Rights not to be transferred or assigned The Purchaser shall not be entitled to transfer or assign his contractual rights to a third party without the express consent of MBD. XVI. Jurisdiction and Arbitration 1. The place of jurisdiction for all disputes arising out of the contract - including actions on negotiable instruments and documents - shall be Augsburg. MBD may also bring an action at the place of the Purchaser's registered office. 2. In the event of arbitration proceedings being agreed with a Purchaser having his registered office out- side the Federal Republic of Germany, any disputes arising out of the contract or in respect of its valid- ity or the validity of the arbitration agreement, shall be finally settled, to the exclusion of legal proceed- ings, under the Rules of Conciliation and Arbitration of the International Chamber of Commerce in Paris, by a court of arbitration composed of three arbitrators, appointed under such Rules, As long as no recourse to arbitration has been made, the contracting parties shall be free to bring an action at the competent court at the place of the defendant party's registered office. XVII. Law applicable and binding force of Contract 1. The Contract shall be governed by German Law. UN-Convention on contracts for the international sale of goods shall not be applicable. 2. In the event of part of the contract being ineffective, the validity of the remaining portion shall not be affected, provided such ineffectiveness is without prejudice to the essential features of the contract. BF 84e I. General. B&'W' These conditions shall apply for the secondment of specialist personnel, unless the contracting parties have agreed otherwise in writing. II. Quotation and conclusion of contract 1. All quotations shall be subject to confirmation. 2. These conditions shall also be deemed to have been accepted by the Purchaser if he accepts theservices rendered by MAN B&W Diesel AG (MBD) or if he renders services himself. III. Extent of Servi~ rendered 1. The written confinnation of order by MBD shall be conclusive for the secondment. Additional under- standings and changes shall be subject to the written confirmation of MBD. 2. MBD shall be responsible for the observation of legal or other regulations at the place where the ser- vices are rendered only as far as the Purchaser has appropriately informed MBD of such regulations. 3. All dues (taxes, fees, customs duties etc.) becoming payable outside the territory of the Federal Re- public of Germany in connection with the fulfilment or processing of the contract, shall be bome by the Purchaser. IV. Remuneration 1. Unless otherwise agreed, the services rendered by the specialist personnel shall be charged on the basis of the costs Incurred and in accordance with the rates listed on the enclosed sheet 2. The rates quoted in the enclosed sheet shall be understood exclusive of any VAT percentage fixed by law. 3. The remuneration is calculated on the basis of the costs as prevailing on the date of the quotation. The right of remuneration adjustment shall be reserved in the event of changes in the wages or other cost factors. V. Board and lodging 1. On MBO's request the Purchaser shall undertake to arrange suitable accommodation for the special- ist personnel and to lend assistance in procuring food. In the event of the Purchaser providing board and/or lodging for the specialist personnel, the costs thereof shall be agreed upon and settled directly with the specialist personnel, as these costs are included in the allowance rates. 2. If lodgings cannot be obtained in the neighbourhood of the site of work, the time for travelling be- tween the lodgings and place of work shall be charged as working time whenever the distance is greater than 3 km. In the event of the specialist personnel using public transport, the costs incurred thereby shall be borne by the Purchaser. The same shall apply to the transportation of equipment VI. IIIn... 1. I n the event of illness during employment, payment of the allowance shall be continued for the time during which the specialist personnel must remain at the place of ~rk owing to illness. During hospi- talisation at the place of work the allowance shall be reduced to the rate mentioned on the enclosed sheet If it is necessary for the incapacitated specialist personnel to retum home, the travelling costs including allowance and hourly rates for the travelling time shall be bome by the Purchaser. 2. For services rendered abroad, any costs arising in connection with illness or accidents, e.g. costs of ~iC81 treatment, hospital care or similar treatment, and medicine, shall be borne by the Purchaser. VII. Work sheets and invoices 1. The working time shall be arranged by the Purchaser with the specialist personnel, and the actual working time shall be certified by the Purchaser. 2. MBD will present monthly accounts based on the work sheets. The final accounts shall be submitted to the Purchaser within a reasonable period after the completion of the work. .~~~ BF 84 E -2- VII/. Terms of payment 1. All payments shall be made, without any deduction whatsoever and free of any expenses, to MBD's bank account on the dates agreed upon. The value-added tax shall be payable upon receipt of in- voice unless the advance payments are liable to tax, in which case it shall be payable pro rata on the dates of payment agreed upon. If payment by bills of exchange has been agreed upon, such bills of exchange shall be received by way of fulfilment 2. MBD shall be entitled, upon request, to a reasonable advance payment to be effected by the Pur- chaser, or, for services rendered outside Germany, to an irrevocable, divisible free-of-charge letter of credit for a reasonable amount to be established by the Purchaser in the Federal Republic of Ger- many, and confirmed by a German bank, prior to the departure of the specialist personnel. 3. Counter-claims not recognised by MBD shall not entitle the Purchaser to withhold or offset payment 4. In the event of the stipulated date of payment being exceeded, MBD shall- without prejudice to any other legal claims - be entitled to charge annual interest at the rate of 5 per cent above the basis in- terest rate of the European Central Bank, plus value-added tax, without any reminder being required. 5. If the Purchaser defaults in his obligations of payment, or if there is any substantial deterioration in his financial situation, or if he suspends payment, the entire balance shall become due immediately, inclusive of bills of exchange having later maturity. 6. On MBD's request the Purchaser shall make advance payments to the specialist personnel; the amounts advanced shall be set off against the total remuneration. IX. Duties of the Purchaser 1. The Purchaser shall, at his own expense and in good time, meet all requirements enabling MBD's personnel to carry out the work without delay. 2. The Purchaser shall make available suitable rooms for storage of material, and rest rooms for the specialist personnel on site. 3. The Purchaser shall make the necessary arrangements for protection of individuals and goods on the erection site, and shall inform the specialist personnel about any safety regulations in force at the Purchaser's works to be observed by the specialist personnel. 4. In the event of work to be carried out outside Germany, any entry, work and other permits required shall be obtained by the Purchaser at his own expense. X. Period of secondment Any information given by MBD with respect to beginning, duration and completion of the secondment of the specialist personnel shall be non-binding. The specialist personnel is instructed to carry out the work as quickly as possible. XI. Completion The contractual services of MBD shall be considered completed when MBD have made available to the Purchaser for the specified period the appropriately qualified specialist personnel agreed upon. BF 84 E -3- XII. Warranty The work of the specialist personnel will be carried out on used items or on items manufactured else- where and under the responsibility of the Purchaser. To the exclusion of further claims, MBD shall as- sume warranty for the appropriate qualification of their specialist personnel, to the extent that they shall replace unsuitable specialist personnel. XIII. Liability 1. The Purchaser shall not be entitled to claim damages or raise any other contractual or legal claims against MBD and their servants, unless such damages or claims have been confirmed in writing. This also applies to faulty advice. 2. Regardless of the above, MBD shall be liable to pay damages to the Purchaser to such extent as the existing manufacturer's public liability insurance pays damages to MBD. The manufacturer's public li- ability insurance is governed by the General Conditions of Uability Insurance (AHB). XIV. Deliveries If items supplied by MBD are used during the work, then the conditions of delivery for spare parts shall apply; where these are not appended, they can be obtained from MBD on request. XV. Contractual rights not to be transferred or assigned The Purchaser shall not be entitled to transfer or assign his contractual rights to a third party without the express consent of MBD. XVI. Offsetting clause MBD reserve the right to set off any debts, whether due or not yet due, and future debts owed by the Purchaser to MAN Aktiengesellschaft or to any company in which GHH A V has a minimum holding, di- rect or indirect, of 50%, against any debts owed to the Purchaser by MAN AG or any of the subsidiaries indicated (the Purchaser will be provided with details of the ownership structure of these subsidiaries on request). The Purchaser also agrees that all securities placed with MBD shall also serve as securities for those debts owed by the Purchaser to companies described in the previous paragraph. Conversely, all securi- ties placed by the Purchaser with these companies shall also serve as securities for debts owed by the Purchaser to MBD irrespective of the legal grounds on which they have arisen. XVII. Jurisdiction and arbitration 1. The place of jurisdiction for all disputes arising out of the contract - including actions on negotiable instruments and documents - shall be Augsburg. MBD may also bring an action at the place of the Purchaser's registered office. 2. In the event of arbitration proceedings being agreed with a Purchaser having his registered office outside the Federal Republic of Germany, any disputes arising out of the contract, or in respect of its valiorty or the validity of the arbitration agreement, shall be finally settled, excluding legal proceedings, under the Rules of Conciliation and Arbitration of the International Chamber of Commerce in Paris by a court of arbitration composed of 3 arbitrators, appointed under such rules. The arbitrators specified by the parties will nominate the third arbitrator. As long as no recourse to arbitration has been made, the contracting parties shall be free to bring an action at the competent court of law at the place of the defendant party's registered office. XVIII. law applicable and binding force of contract 1. The contract shall be governed by German law. 2. In the event of part of the contract being ineffective, the validity of the remaining portion shall not be affected, provided such ineffectiveness is without prejudice to the essential features of the contract. ~~~::;::\.f=::=\ SCOPE OF SUPPLY MAN B&W Diesel Canada Ltd presents the following technical solution for the requested 70 MW DIESEL POWER PLANT. 1 Principal advantages of Diesel power plants MAN B&W Diesel offers a complete range of appropriate generat- ing systems. Our four-stroke engines are available for power plants with engine outputs of up to 23,850 kW. The Diesel engine provides the highest thermal efficiency and permits the most eco- nomical conversion of primary energy into electricity. Power plants equipped with modem MAN B&W four-stroke Diesel engines offer the following principal advantages: - Low capital investment - Easy and cost effective installation - High thermal efficiency - Capability to bum arctic fuel oil - High reliability - Easy to extend - High flexibility to meet load demand - Low maintenance requirements 2 MAN B&W engine type 48/60 The quoted engine type belongs to the environment friendly, mod- em MAN B&W family of medium-speed four-stroke Diesel engines comprising the types L 58/64 - L +V 48/60 - L 40/54 - L +V 32/40. All four engine types are designed with the same construction principles and are equipped with the same new and future- oriented design characteristics. 3 Technical solution MAN B&W Diesel proposes a solution with 6 MAN B&Wengines 18V48/60, four-stroke, 18-cytinder, 18V-design (4 engines will be in operation, 1 in hot standby & 1 in cold standby). This engine is equipped with exhaust-gas driven turbocharger (constant pressure system) and charge air-cooling system. 1 nf in 320 mm 400 mm 514 rpm 22.6 bar 10.3 m/s Engine main data 48/60 Bore Stroke Speed Mean effective pressure Piston speed 3.2 30°C -40 °C 20°C 300m MAX MIN Design conditions Ambient air temperature Ambient air temperature Wet bulb temperature Altitude above sea level ISO conditions 18,900 kWmech 18,427 kW. = 23,034 kVA 60Hz 0.8 13.8 kV Site conditions 1 18900 kWmech 18,427 kW.. = 23,034 kVA 60Hz 0.8 13.8 kV Power output (per engine) Mode of operation Max. contino rating (MCR) Electrical output (At alterna- tor terminals) Frequency Power factor Voltage The engine rating complies to ISO 3046-1:2002. The overload matter is ruled in ISO 8528-1: 1993, i.e. for engines for electrical power generation, the engine will be blocked at 110 % load of the MCR whereas the 10 % will only be used for short periods for re- covery and prevention of a frequency drop in case of application. It is necessary to provide additional engine power for governing purposes only. This additional engine power shall not be used for the supply of electrical consumers. The above-mentioned mechanical output can be achieved up to 36 °C ambient temperature. At higher ambient temperatures, the engine output will automatically be reduced. Depending on the power plant concept, approx. 4-5 % of the elec- trical power output has to be considered internally for auxiliaries. Based on this assumption the net output of the plant is at least 70 MW during the operation of 4 engines at full load. 1 at site conditions as defined ~ sedk)n 3.2 2of10 3.4 Consumption rates (per engine) Mode of operation ISO conditions Site conditions2 Specific fuel oil consump- 176 g/kWh 177.5 g/kWh tion (sfoc)*: Lubricating oil consump- 0.8 g/kWh 0.8 g/kWh tion- . Tolerance of sfoc :f: 5% related to mechanical output without atIad1ed pumps, according to ISO 304611 :1995. Using fuel oil with LHV = 42,700 kJ/kg. - Tolerance of lube oil consumption %20% related to mech. output at 100 % k)ad. ~ 4 Space requirements The space as per enclosed layout proposal C11. 74500-0408 is required. The Diesel power plant is designed in a modular way and can easily be extended by adding new units to cope with rising load demand. 5 Scope of supply MAN B&W Diesel to act as supplier of Diesel generating equip- ment and associated services as follows: 5.1 Engines - 6 MAN B&W engines 18V 48/60, turbocharged, with two- stage charge-air cooler I suitable for operation on 700cStl50.C - Blow of valve for charge air system - For turbocharger: 2 sets of spare parts and 1 set of tools - Standard engine spares - Standard and special tools for servicing and inspection of the engine - Hydraulic tools - Electric valve cone grinder - Electric valve seat grinder - Main engine special tools for maintenance procedure OPTIONAL EQUIPMENT: Engine wear parts for the first 8000 hour engine operation 2 at site conditions as defined in sedk)n 32 3of10 ~ Foundation equipment (per engine) Engine rigidly mounted on a steel foundation frame. Mounting of the frame (elastically) and a two-bearing generator (rigidly) on a common steel-reinforced concrete foundation block. Generator coupled to the engine by means of a flexible coupling. - Steel foundation frame with integrated lubricating oil service tank. - Spring-loaded isolators for resilient, vibration-isolated mount- ing of the steel foundation frame, with equipment for lining and fixing the isolators - Calculation of the foundation block and drawing up of accompanying formwork and reinforcement plans - Flexjble coupling between engine and alternator Engine control and monitoring equipment (per engine) - Scope of equipment for control, monitoring and operating the engine and the auxiliaries, to be accommodated in a control cabinet which is provided by the electrical equipment supplier - Additional devices for monitoring and controlling of the com- mon auxiliaries - Resistance thermometer Pt 100 at each crankshaft bearing to be connected to the main bearing temperature monitoring unit which is provided by the electrical equipment supplier - Exhaust gas temperature mean value monitoring system for installation in monitoring cabinet. - Switch cabinet, completely wired, with automatic control for starting air compressor OPTIONAL EQUIPMENT: Engine diagnosis system 'CoCoS EDS' 5.4 Common systems I Modular design In order to optimise space utilisation as well as installation, some systems like lubricating oil, cooling water, and leakage oil are in- stalled on one common module skid (auxiliary module). The auxil- iary module is installed adjacent to the counter-coupling side of the engine. The module contains equipment marked with. and is ready piped and electrically connected to a skid-mounted control box. 4 of 10 J~~I:~\.f==' 5.5 t c::~ ~ , ~, ~~ Lubricating oil system (per engine) - Lubricating oil pump with electric motor * - Lubricating oil heat exchanger * - Automatic backwash filter- Temperature regulating valve * - Compact unit for lubricating oil bypass cleaning - All necessary piping and accessories inside engine room, without pipe supports i 5.6 ~- Two-circuit radiator cooling system Two-circuit radiator cooling system for outside installation with separate circuits for high temperature (charge air stage 1 and cyl- inder cooling water) and low temperature (charge air stage 2 and lubricating oil) consisting of: - Two-circuit radiator cooler - Supporting steel structure for the radiator cooling plant 5.6.1 High temperature cooling system (HT) - Cooling water pump with electric motor. - Temperature regulating unit for cylinder cooling water. - Preheating system for cylinder cooling water and lubricating oil consisting of one common electrical preheater set and plate-type heat exchangers per engine including temperature regulator and piping. - Expansion tank - Rundown tank for excess glycol in summer - Piping inside engine room and to radiator cooling system (dis- tance cooling system to engine room max. 8 m), without pipe supports 5.6.2 Low temperature cooling system (L T) - Cooling water pump with electric motor. - Temperature regulating unit for charge air cooling water. - Expansion tank - Piping inside engine room and to radiator cooling system (dis- tance cooling system to engine room max. 8 m). without pipe supports 5 of 10 5.6.3 Waste-heat utilisation from the HT -circuit - Plate-type heat exchanger per engine - Temperature regulating unit for the heating circuit - Piping inside the power plant to all consumers, for heating purposes of the relevant consumers by hot water 5.7 Fuel system- Arctic fuel oil system (pressurised) with equipment for Diesel oil operation, consisting of: - Diesel fuel oil supply pump with strainer, electrical motor (1x for service and 1x as standby) per plant - Filter module for Diesel fuel oil (duplex filter) and for heavy fuel oil (automatic backwash filter), each with bypass, per plant - Cooler for the dry fuel to keep it under 30 - 35 deg C before entry to the engine - Fuel oil module with change over valve diesel fuel oiVAFO, flow meter, mixing vessel, circulating pump with motor, steam-heated final preheater, viscosity and control system, duplex filter, switch cubide; per engine - Leakage oil! sludge module with one tank for leakage fuel oil and one tank for leakage lube oil as well as lube oil sludge, with discharge pumps - All necessary piping for Diesel fuel oil arctic fuel oil inside engine room - Respective accessories 5.8 Combustion air system (per engine) - Intake air filter unit with weather hood, weather blind with bird wire grating, oil bath rotary filter with wetting agent, baffle type silencer with silencing effect of approx. 30 dB(A), all neces- sary adaptor pieces and switch cabinet with control and power part - Intake air pipe 5.9 Exhaust gas system (per engine) - Exhaust gas silencer, silencing effect approx. 25 dB(A) - Exhaust gas pipe - Insulation material, loose, for heat insulation of the exhaust gas pipe inside power house - Respective accessories 8~10- Compressed air system - Compressor, 30 bar, air cooled, with electric motor - Starting air receiver, working pressure 30 bar - Condensate collector for compressor and starting air vessel - All necessary piping between starting air compressor, starting air receiver and engine - Respective accessories Auxiliary Boiler - Oil fired boiler acting in standby. Also suitable for heating the charge-air cooler and thus heating the air before entering the engine. - Piping and valves for the boiler Electrical equipment - 6 medium-voltage three-phase synchronous generators 13.8 kV - 60 Hz - Generator neutral earthing equipment - Medium-voltage switchgear with all feeders and coupling pan- els - Switchboards for control, measuring and protection - Engine monitoring and control system - Station service transformer 13.8 kV / 440 V - 60 Hz - Low-voltage distribution for auxiliary drives - DC supply system for monitoring and control systems - Power and control cables up to MV-switchboard - Earthing system inside powerhouse building - Standard spare parts 5.13 General services - Basic engineering of mechanical systems - Technical documentation (manuals, spare parts catalogues) in case of order - Delegation of specialists for supervision of installation work and commissioning - Training of customers' staff in manufacturer's workshop and at site during erection and commissioning 7of10 6 Turnkey portion 6.1 Balance of plant, mechanical - Service compressed air system - Powerhouse ventilation and air conditioning - Powerhouse crane and lifting facilities for auxiliary rooms and buildings - Emergency or blackstart generating facility - All piping and respective accessories outside the powerhouse - Supporting structures for silencers, boilers, tanks, pipes etc. - Stacks including structures - Water treatment system - Fire detection and fire fighting system Balance of plant, electrical - HV substation including foundations - Step up transformers (13. 8kV I 60kV) - Cables between the MV switchgear and the substation - External connections for power distribution, connection to the grid Transport - DDU to Crooked Creek Site - OPTIONAL EQUIPMENT: Delivery of the equipment detailed herein under MAN B&W Diesel scope of supply (Delivery Duty Unpaid to the site in A- laska, in accordance with INCOTERMS 2000) 6.4 Installation - Installation of all supplied mechanical and electrical power generating equipment, including consumables, tools, handling facilities - Site mobilisation 6.5 Tank farm - Tank farm comprising - 6 Tanks for Diesel fuel oil, capacity approx. 18,000 m3 each - 1 Tank for lubricating oil, capacity 387 m3 8of10 - 2 Tanks for sludge, capacity 10m3 each heated by hot water, if necessary, including all relevant piping and unloading pumps Raw and treated water storage tank Tank foundations, retention walls, fire-fighting devices and instrumentation, etc. The tank farm will be designed according to the local regula- tions 6.6 Civil scope - Civil engineering - Preparation of Site (assuming no complications and not taking into account 'Permafrost'), establishment of basic infrastruc- ture. - Soil preparation and reinforcement (Not taking into account the affects of 'Permafrost') - Calculation of the soleplate below the foundation block - Foundations - Construction of the power plant buildings - LV power distribution-, lighting-systems, communication sys- tems, clock, siren system with respective accessories, inside and outside the power house building - Lightning protection and earthing system of entire plant - Sanitary equipment - Steel gratings, supporting structures and steel stairs etc. - Elevated floor in the electrical annex - Cable ducts and covers, break-throughs, protective screens etc. . Water distribution system and connections Rain-, waste-, oily water- sewage- collection, separation, drai- nage and discharge system 6.7 Miscellaneous - Site management 7 List of exclusions 7.1 Balance of plant, mechanical - Dismantling and re-assembling of the engines and / or placing 9 of 10 the engine(s) onto the steel foundation frame(s) in the AJaska harbour or even at site Unloading harbour at the site in the river Kuskowin, with all facilities for fuel and lube oil tankers Insulation material for the storage tanks, including erection Exhaust gas after treatment system Heating piping and accessories for heating purposes outside the power plant, such as central heating of Crooked Creek housing and public buildings NOx-reduction plant (quoted separately) 7.2 Balance of plant, electrical - Transmission lines - Substation 7.3 Installation - Lifting structure to place the engine on the foundation frame - Special cost's for transport and erection in Alaska - Water and electricity supply Civil scope - Piles or other special foundation methods - Costs for special requests of works in arctic areas, such as 'PERMAFROST'. Miscellaneous - Dismantling of existing installation parts and preparation for erection of the new material - Wear and insurance spare parts for all the quoted scope. - Customer witnessed acceptance tests in our resp. our subsuppliers' works - Permits, studies and approvals for the installation and opera- tion of the power plant - Custom clearance - Supply of consumables including fuel and lubricating oil for start up and commissioning of the power generating equip- ment - First filling of all operating media (like fuel oil, lubricating oil, grease, hydraulic oil, additives etc. 10 of 10 The Germani$cher Uoyd certification GmbH, 20469 H8ffiburg. herewith certifies that the company MAN B&W Diesel AG Stadtbachstral3e 1, 86224 Augsburg~ Germany hes established and maintains a Quality Management System relevant for Development, design, production, installation, servicing and licensing of Diesel engines and turbochargers for ships and .power plants as well as casting of nodular cast iron and grey cast iron components :'0_,/"",..,.' Ge.Im~.nlsch@r UQYQC_~!1:i~i_catlon ~m_bH has a~d~~_~ It!~companv. Evidence was provided. . . that the Quality Management System fulfills the requltements of the followIng standa'td: DIN EN ISO 9001 :1994 The validitY of this certificate is subject to the company applying and maintaining its Quality Management System in accordance with the standard indicated. This will be monitOr'ed by Germanischer Lloyd Cel'tification GmbH. The certificate is valid until 14.12.2003 Hamburg, 29.05.2001 Certificate No. Q8-2306 HH ~!~~~~i. utsc:h., :- Alckr9d1ti8~ :- Rat -4 ~ TGA.ZM -07-91-00 I'V'~ r(Dr. Weber) ~s C8IdfiQ" Is "."4 ~v '" connectim with C81ifk.te QS.2306/1 HH, £9 toalI= 1-~ ~ 'c ~'~ .1 - :", ~l c R T I c T The Germanischer Uoyd CenHicatlon GmbH, 20459 Hamburg, herewith certifies that the company MAN B&W Diesel AG Diesel engines StadtbachstraBe 1, 86224 Augsburg, Germany has established and maintains a Quality Management System relevant for Development. design. production. installation, commissioning, servicing and licensing of Diesel engines for ships and power plants. including engineering, procurement and construction up to turnkey power plants, as welt as the required project management Germanischer Lloyd Cer:tification GmbH has audited the company. Evidence was provided -; that the Quality Management. System fulfills. the.-requirements-of the following $tandar~ DIN EN ISO- 9001 :1994 The validity of this certificate Is subject to the company applying and maintaining its Quality Management System in accordance with the standard indicated. This will be monitored by Germanischer Uoyd Certif!catlon GmbH. The ceniflcate is valid until 14.12.2003 Hamburg, 29.06.2001 Certificate No. 05-2306/1 HH ,'" I~!~~~~~"~e' " " . AJdcrediliemng8 "Rat. A ~ TGA-ZM-O7-91-00 / '. (Dr. .Weber) (K,I'P. SC~6der) Thit e-tillC8t8 d ~alld aNY in conn8CdQt\ wkh e8nifiat8 0$-2306 HI1 x-~, u~~-==~." -=.:.oJ ~~ ~ ~UaCN~~ - ("I ~ -=~-O\...,~~U = r". roo. ~- I I ..-= .("1 M ;:,.;Or-..r-..~- .- M N --::= <-- or, or. ~-=-0.=O ~O\""- ~---= .""" ~~ =. ~- ~... -- -~.',==-U~---~-= - 0 -- .~~ ;i.= =.~=.- c ---:l:U:I:~ ~-:l:_~- ~-::u= ~~~f-t:.~ "0- £ ~ u t: '-2 8 '" :E - '" ~ ~ '" ,~ - ~ 0' .c .~ 3= GJ g .~ 0. E0(.) .S .~ S GJ- (I) >.(I) >.-.- "t; 0 CO (I) .~ - tU .c- '0 £ tU...- (I) c 0 e GJ '0 (I) tU .c .c (.) :E 3= . (I) ea.I-(I)>. (I) - ~ ~ <= c. ~ = ~ = a.I ~ ~ :a Co. <= .. - (I) - «) <= :: c. Co c. Co ~ cu '" c: Co) 0 -.- tJ.. ~ e tJ .~ ~ OA) .-«) - ~\0-. = 0 = «) = Co ~ 0 - ~ ~ :n ~ c: :Q.- = ~ .- 0 - - a.I - a.I 0 ~ ... .: «) ~ .c = E-o ~ ~ == ~ ~-. = = ,... == ~ NN~ t"-~ r:o.:: 5.- NN~ ..Q ~ ..c.:= 1I)C'\~~C3 ~~~~~ ;;~~~Q = .. 0 =.- 0-.- .. ~ - (I) "" ~ u - "" &;. (I) - .- .- (I) Co. .. ~.Oo >< ~ ~~UJ .0 - C § ~ -=.g Z u ~ ""co""- ~.- "" .. "" ~ (I) U O r'.- ~E '-'co u ~ c..,' '- ..Y 5zoo "5u~.9.9 U~OQQ .... J 1'\ JI J I .., =Q;.~~ ";~Q;oW,"b.c...Q Q ~ "C ~Q~ Q .- "C ~-~ ~= ct~~ Q=U .0 ~ ~ ~--N ~= ~~M 8I)~~ ~O~ ~-"--'--- '-' -~I' -=-, - ,~ 0 ~ ! I ] ~ c: I-. 1 ~ z - 0 0. &' - . .. z 0 u" - . c w 0 z - u ~ .. , » - z 0 0. oJ 0. ~ z 0 u , . -< w . z u ~ . . ~ T. , + ~ :-. .~. ~ ~ ~;t; ~~ ...-'-. -- '-' Q. .+~... -i .. --L . . Q f f t -- fl---- - -- 0 ~ ~ ~ s ~ . -i~g ~~-<x-\D~« 778418857804/11/2083 10:12 ~Jt9 '::773 Z 4~ 71'" I ~ .r Oa"Lt 678-957-8211 201 Defense Highway, Su~ 100 770-4'\8..051~ ~,~ 2140"1 Telephone F- De., Ratal, We are pleased to provide budgetary pricing and performance information for Equipment and Services for a plamed diesel fue4ed power plant at 8 site in Donlin, AK. The attached scope of supply listing is for a plant using 5 X 18V46 geneet& (N+1 configuration). The 16V46 has the ~t fuel consumption of all Wartsi'- engines in 8 stmple cycle arrangement. Howev«, this arrangement will not provide your minimum net power requirement of. 70 MW with 04 unitt. running. Thefefore, we have atso included a table below which summarizes power output and estimated net heat rate for simple cycle arrangements using 5 X 18V46. 10 X 18V32, and for a combined cycle arrangement adding a steam turbine generator to either the 5 X 18V46 or 10 X 18V32 engine power plant. Note that total plant outputs are shown with 1 genset not Nnning (N+1). ~ou kW/unk Steam turbine Gt'O88 kW td8 Net kW toI8t ~ H.- R88 ouiI)ut kW 4 x46 or9 x 32 (4 x46 orQ x 32) 5X18V~SS 17m.4 NO\. ~053 5X18V46CC 17024 70853 7403 10X18V32SS 7823 ~ 88295 8148 10X 18V32 7823 4 7 ,156 ~ Confi9uration The performance shown 8~e i~ ~~ u~n ~e 'following service conditions: 77 450 13,800 60 Q.80 480 Ms:ximum ambient tem~ratu~: Altitude: Generator voltage Frequency: Power factor: Service voltage: Page: 1 of 13D81e: Aptil 11, 2003 , OF ft asl V Hz V 77e418057084/11/2e63 18:12 Fuel Diesel Genset emissions for the 18V46 genset measured at generator terminals: -fuel 8ulfur a88umed to be 0.5% by mass We estimate an 80% reduction efficiency will be required of the OCR system to reduce NOx emissions to "comfortably" under 450 mg/Nm3. which is what Red Dog indicated to us as their target NOx level. RedUdion of up to 90% Is possIble. Approximately 85 - 90% reduction efficiency will be required of the Oxidation catatyst to redU(E CO emissions to 100 tons per year. This is accounted for in our budgetary pricing for the SCRlOxi catalyst sy&tem. H~ f8Covery capability; Any of the proposed ~ant configuration$ have the capability to provide substantially more hot water than the amounts for the heating systems described in your email request. As an example. 4 X 18V46 gensets can produce over 58 MMBTU/hr of 170F hot water uSing the engine jacket water heat circuit a~ne. The combined cycle configuration may make the molt sense here due to itS superior heat rate and its ability to provide the hot water as a "free- by-product of the steam turbine condenser system. Pricing: The 8ttached Scope of Supply listing is for a simpte cycle 5 X 18V46 plant built by Wartsila The tabte below summarizes our budgetary equipment and services pricing for the various power plant configurations and our estimated EPC pricing. The EPC PliCing is tor Indicative purPOSM onty, and reftects current costs for a midW88t USA rural site with non-union labor. Most of the risk and cost unknowns for this project would have to do wtth the civil works. The foundations for Wan$\)a p\ants are -slab on grade- type cons.\ructioo, ~hout a basement. It the excavatiOn costs are reasonable and if the cost of concrete i8 reasoMble, the cost to conatNct the plant .houtd not be greatly beyond typicat costs. if you have any figures tor these parameters we can adjust our pridng accordtngly. The same comment applies to labor costs. P8ge: 2 of 13c.t8; A1N'i111. 2003 77e41se57e64/11/2063 10:12 Budgetary 8udgetaryEPC EPC cost of cost of simple cycle combined cycle ptant (incl. plant (incl. 5X18V46 000 10 X 18V32 000 Equipment price conditions: The equipment pricing is for delivery of the equipment not later than November 20, 2003. For later delivery the price will be increased by 0.5 % for each month up to the date of deUvery. The price does include customs duty. but does not include any taxes or any other charges outside the country of origin. P.yment Wn11S: To be detennined. Appropriate payment security to be provided by the Buyer Delivery terms: CIP US Port. duty paid, according to Incotem1s latest edition. We have NOT included barge delivery to the Donlin Creek jobsite due to the lack of time to soliCit bidS from freight forwarding companies. Delivery time: Equipment delivery time is within six months of technicatly and commercially clarified order and down payment. Typical delivery time for an EPC power piant of this size is within 12 months or order. Validity: The equipment and services pricing in this offer is val'td until May 20, 2003. Availability guarantee: WartsiJa operates approximately 100 power ptants around the world. It is our practice to make availability guarantees only when we have Wartsila personnel involved in the power plant operation. Once an equipment configuration (or two options) is chosen. Wansila will be happy to make 8 proposal tor O&M Which includes an availability guarantee. We trust our offer meets with your appro'l/al and look forward to further discussion. Shouid you require further information, please do not hesitate to contact us.~~!~~::I y , .y . Imor8 Bu.in... .iopment ManageT I Power P'anta P8ge: 3 of 1308&8 ~ APfi11. 2fX)3 778418857884/11/2883 16:12 Scope of Supply Supply by OthersSupply byWartsilaQTYDescnpttonSection POWER GENERATION A GENERA TtNG SET A1 5 5 5 x x x ENGINE Engine model: W1 8V46 operating on diesel oil; speed: 514 rpm; output Pre lubricating oil pump Engine instrumentation GENERATOR Generator: 13,800 Vott; 60 H~ A1.2 5 5 x 5 x 5 5 5 x x X A1.6 5 x 5 BASE FRAME Common base frame ELASTIC MOUNTING Steel springs (set) COUPLlNG,FLYWHEEL Flexible coupling Flywheel cover Generating set assembly FIXING EQUIPMENT F\xing equipment for auxi\~ries (~) FLEXIBLE CONNECTIONS Flexible hoses and bellows (set)x A1.8 5 PLATFORMS Engine malntenance platform prefabr1cated MECHANICAL AUXILIARY SYSTEMS x A2 A2.1 A2.1.1 2 3 2 2 3 5 1 x x x x x x X FUEL SYSTEM LIGHT FUEL Oil SYSTEM Light fuel oil unloadIng pump unit Light fuel oil storage tank Li9ht fuel oil transfer pump unit Light fuel oil day tank Light fuel oil day tank equipment LFO fuel oil unit Piping and valves Itgt\1 fuet oil $Y$~em <"t.) LUBRICATING OIL SYSTEM ENGINE LUBRICATING OIL SYSTEM Lubricating oil therTTlostatic three-way valve Lubricating 0" ~utom~tic ma'n filter A2.2.1 5 5 x x P8g8:. or 13~: April 1', 2003 ~ ~""" 18:12 77e41S057e84/11/2883 ~ Scope of Supply Supply by Wartsila Supply by OthersOTYDescriptionSection 5 1 1 x x x A22.2 1 1 1 1 1 1 x x x x )( x 2 2 2 1 x x x x LubricatIng 011 heat exchanger Piping and valves engine lubricating oil system {$et)Engine lubricating oil pipe insulation (set) PLANT LUBRtCATINGOIL SYSTEM Lubricating oil unloading pump unit Lubri~ting oil s.torsge tank ~ fresh oil Lubricating oil transfer pump unit Lubricating oil maintenance tank Lubricating oil storage tank' used oil Piping and v61ves plant lubncatlng 011 system (set) COMPRESSED AIR SYSTEM Star1ing air bottle Starting air compre!t!tof uM CDntrol and working ajr compressor unit Piping ~nd valves compressed air system (set) COOLING SYSTEMA2.4 A2.4.1 5 5 5 5 5 5 5 1 1 x x x x x x x x x A242 1 1 ENGINE COOLING SYSTEM Thermostatic valve low temperature system Thermos.tatic valve high temperature system Low temperature expansion tank High temperature expanSIon tank PreheatIng unit Cooling radiator Pipe module Piping and valves engine cooling system (set) Cooling system pipe insulation (set) PLANT COOLING SYSTEM Maintenance water tank unit (fresh water) P'ping and va~"es maintenance water sys.tem (set) x x '0 10 10 10 x x )( x 5 5 5 5 5 x )( x x x CHARGE AIR SYSTEM Charge aIr filter Charge aIr silencer Expansion bellows charge aIr system Ducting charge air system (set) EXHAUST SYSTEM Exhaus1 gas SIlencer Expansion bel\ows exhaust system Duc1lng exhaust gas system (set) Insulation exhaust gas ductlng (set) Exhaust gas stack pipe Page 5 of 13Date APril 11. 2003 770418057B16:1284/11/2883 Scope of Supply Supply by wartsila Supply by OttIersaTYDescriptionSection A2.8.2 -4 1 1 1 1 , 1 1 x x x x X x x x STATiON SUPPORT SYSTEM OILY WATER TREATMENT SYSTEM Oily: water transfer pump unit Boller washing water tank Oily water buffer tank Oily water treatment unit Sludge tank S\udge !oading pump unit Piping and valves oily water treatment system (set) Sludge disposal EMERGENCY DIESEL GENERATOR SET Blackstart unit A2.8.4 1 x 1 5 5 1 x x x x STEEL STRUCTURES Steel structures for auxiliary equipment support (set)Steel structures for charge air duct support (set) Steel strudures for exhaust duct support (set) Steel structures outside building (set) ELECTRICAL SYSTEMS A3 A3.1 5 5 1 3 5 5 3 1 x x X x x X X X MAIN SWITCH GEAR Generator cubide Neutral point cubicle Bustie cubtcle Outgoing feeder cubicle Generator cubicle cables (set) Generator neu\ral po;nt cab\es (set) Outgoing cubicJe cabJes (set) Cable terminations and cable fittings 1, 1 5 e 1 x x x x x x A3.3 1 x A3.4 1 x STATION SERVICE SYSTEM Station auxi'iary transfomler Low voltage switchboard Station transfom1er cables (set) E"9ine auxiliary panel Low voltage cabtes (set) Cab" terminations and cable fittings DC SYSTEM DC system power plant control EARTHING SYSTEM Safety earthing system CONNECTION WITH LOCAL INDUSTRY Local electrical study 1 x P8g8: e of 13D8t8: Apri 11, 2003 18:1204/11/2003 Scope of Supply Supply by OthersSupply by wartsjl~QTYDescriptionSection 1 1 1 x x x Local interconnect study Distribution cable Physical wnnectton w'rth local industry AUTOMATION SYSTEM ( Extended type) A4 1 x 2 5 5 1 x x x ~ 2 1 1 x x x INSTRUMENTATION Fietd instrumentation CONTROL PANELS Common sect)on centralized control panel Engine wise section centraliZed control panel Local engine control panel Local (auxiliary) control panels OPERATOR'S STATION Operator's station Report 5tation Uninterrupted pQwer supply (UPS) CABLES AN~ ACC~SSORIES Control and ins\rumemation cables M.6 5 A7 TOOLS Engine ana turbo malnten,nce tools (set) General tools for workshop (set) CIVIL WORKS & STRUCTURES 1 1 x B 81 1 1 1 1 1 1 1 1 1 1 1 x x x X x x X x x x x 81.6 1 1 1 1 1 x x x x POWER PLANT BUILDINGS ENGINE HALL Superstructures, engine hall Eal1hw~s & s.UbstNctUre'S., engl~ hall Eal1hworks & substructures, generating sets Inlet ventilation, generator side Inlet ventilation, 8uxffiary side Outlet ventilation, roof monftor PtumbiC\9 & sanitary \C\staltatiOns, engine hall E.ectrtf,cauon, engine hat' Fire detection, engine hall Overhead crane, engine hall Monorail hoist, engine hall FIRE FIGHTING STRUCTUR~S Fire fighting container E.a~8 & ..ubstructuree, fir~ f~ntir'g container Fire water tank Earthworks & &ubstrudures, fi~ ~r t~nkFire water pump main unit .x F'8Q8: 7 of 13Dele: A9ti 11, 2003 778418804/11/2003 18:12 Scope of Supply Supply byOthersSupply by WartsflaQTYDescriptionSection 5 5 1 20 1 x x x x x B2 82.3 1 1 1 1 1 1 1 x x x x x x x 82.5 1 1 1 1 x x x 1 1 Indoor hose rack statio.., Exterior fIre hydrant Foam unit Portable fire exttngutsher: CO2 type Piping and varves fire fighting system (set) ANCILLIARY SERVICE BUILDINGS GUARD HOUSE Superstructures, guard house Earthworks & substructures, guard house Ventilation, guard house Airconditioning I guard house Plumbing & sanitary installations, guard house Electrification, guard house Fire fighting, guard house ADMINISTRA nON BUilDING Superstructures, administration bulfdfng Earthworks & substructures, admin\$tration building Ventilation, administration building Airconditioning, administration building Plumbtng & sanitary installations. administration bu\\ding Electrification, administration building Fire fighting, administration building OIL STORAGE AND CONTAINMENT AREAS x x B3 3 1 1 1 )( x x .,x 1 x DAY TANK CaNT AI NMENT AREA E~rthwor'Ks & substructures. nght fuel oil cay tank Earthworks & substructures. oily water buffer tank Earthworks & substructures. sludge tank Eal1hworks & substructures, concentrated sludge tank Earthworks & substructures, lubricating oil storage tank: fresh oil Earthworks & substructures, 'ubncating 0'1\ storage tank: used oil Earthworks & substructures.. lubricating oil maintenance tank x 3 1 1 1 x X X X FUEL STORAGE CONTAINMENT AREA e8rthWOrkS 8. substructures, tight fuel 011 storage tank Earthworks & substructures. dike bottom Earthworks & substructures. dike wall Earthworks & subStructures. pt'pe support P8ge: 8 of 13D8t8: April 11, 2003 04/11/2003 18:12 Scope of Supply Supply by Wartsila Supply byOthersOTYDescriptionSection 83.3 1 1 x x 1 1 1 1 x x x x FUEL UNLOADING STATION Superstructures. fuel unloading station E~rthworks & substructures, fuel unloading station Plumbing & sanitary installations, fuel unloading station E\ectriftcation, fuel unloading station Fire fighting. fuel unloading station Earthworks & substructures I pipe support AUXILIARY STRUCTURES84 84..1 5 5 1 x x x 1 1 x x 84.4 .. 1 1 x x x 1 1 1 x x x COOLING SYSTEM STRUCTURES SUperstructures, radiatof($) Earthworks & substructures, radiator(s) Earthworks & substructures. pipe support EXHAUST GAS DUCTING AND SUPPORT STRUCTURES Superatructures, exhaust gas stack Earthwork& & sub&tructures, exhaust gS& stack(s) OIL/WA TER COllECTION AND SEPARATION STRUCTURES Oily water collecting sump SuperstnJctures. oily water transf8r pump shelter Earthworks & substructures, oily water treatment unit Plumb)ng & sanitary insta"mions, oity water treatment unit Electrification, oily water treatment unit Fire fighting. oily water treatment unit POWER TRANSMISSION AREAS85 1 1 1 x x x AUXILIARY TRANSFORMER AREAS Earthworic.s & substructures, station auxiliary transfOm"er Fence, around station auxiliary transformer Earthworks & substructures, blackstart unit container Be 1 x SITE WORKS EarthworXs, son stabi'a1zation (piles, soil reinforcement. etc.) (if required) Existing elements on plot (demOlition, protection, cleaning, top soil removal, etc.) (if required) Earth excavation on p(ot (if required) Rock ex.cavatton on p~t (tf required) 1 1 1 x x x Page: 9 ~ 1308\$; Aptti11. 2003 77B418es'10:1284/11/2883 Scope of Supply Suppfy by Otf1ers Supply by WartsilaCTYDescriptionSection ,111, 1 1 1 1 1 x x x x x x x x x x Fiiiing on plot (if required) Pavements, roads and parking Power plant surface covering (gra'lle\) Fence, around power plant Pavements, curbs and rain water drainage RO8d to plant Fuel pipe to plant Water pipe to plant Sewage ptpe to plant Telephone lines to plant SERVICESc C1 1 1 1 1 1 1 1 1 1 1 x x X X X X ~ x x x (£C3 1 ., 1 x x x 1 x ENGINEERING Preliminary engineering B-asic engineef\r\~ Detailed mechanical engineering Detailed electrical engineering Detailed civil engineering Detailed heat recovery system engineering Detailed SCR ~ystem eng~rin9 Environmental study I modeling Site survey Soil penetration test INSTALLATION Instaltatlon of mechanical equipment Installation of heat recovery equipment lnstallation of etectrical equipment Installation of civil superstructures, aircondltioning, ventilation &.ystems, electrical systen'ls. fire fighting sytems, plumbing and sanitary installations. etc. Installation of civil earthworks & substructures and siteworks 1 x TESTING AND COMMISSIONINGC4 5 WORKSHOP TESTS Test 8ccording to stend8rd program TESTS AND COMPLETION AT SITE No load test On load test x 5 5 x x TRAININGC5 18 1 1 x x x C5.1 iRAINING AT WARTSILA FACILITY Basic training (number of man weekS) Travel Board & lodging trainees 088: AprV 11, 2003 P8Q8: 1001'13 (I 84/11/2883 10:12 Scope of Suppfy Supply by Wartsils Supply by OthersQTYDescriptionSection C5.2 15 15 1 , 5 x x x x x TRAINING ON SITE Mechanical instructor (number of days) El,edncal instNctor {number of da't$} Travel Board & lodging train;ng instructor (number of days) Training material (per person) DOCUMENTSC6 06.1 3 3 3 3 x x x x PRELIMINARY DESIGN General site layouts Gener-a\ power hou&e layouts General flow diagram drafts General electrical single line diagram drafts 3 3 3 3 x x x x BASIC DESIGN Genera( site layouts Gener8\ power house \ayo~ Flow magrsm drafts Electrical single Jine diagram drafts DETAILED DESIGN Drawings (set) Parts l\sts (set) P&ID's 3 3 3 x X X 3 3 x x c 1 1 1 1 1 1 1 1 , 1 1 1 1 x x x x x x X- x X x x x x x x USER MANUALS Engine operation and maintenance m~uals Engine $pare parts catalogue TAXES I DUTIES I PERMITS I INSURANCE Import duty Sales tax and \ocal taxes Construction permitting, approvals. stamps. etc. Local business permit Water p8nT\lt. emission permit. etc. Permitting proceduresBuilders risk ,nsurance Freight insurance EXW to FOB Freight insurance FOB up to (CPT US Port) Freight insurance from port to site Generat commercial liability insurance Workers compensation and employers liability insurance Property and liability coverage TRANSPORTATION (CPT US Port) Packing and marking of equipment Export dearanc.e E 1 1 x x p~: 11 of 13D8Ie : APfI 11. 2003 ( 84/11/2883 16:12 Scope of Supply Supply by Supply by W~rtsila Ot~Q1'YDescriptionSection 1 x 1 1 1 1 1 1 x X X X x x F 1 1 1 1 1 1 1 ~ x X X x ¥ X Transportation of equipment from place of manufacturiJ1g to port of shipment Ocean freight of equipment from port of shipment to port of destination Unloading of equipment at port of destination Import clearance T ransportatlon from pon. of entry to warehouse Transportation from warehouse to project site Unloading of equipment at piace of destination CONSUMABLES Initial filtings for fuel oil Initial fillings for lubricating oil Initial chemicals for water treatment Initial fi"ings fresh engine water Fuel for start-up and testing E\ectricity supply during construction Water supply during construction ~ ~P8ge; 12 of 13D88 : April 11. 2003 ( 16:1204/11/2083 Exhibit A Scope of Supply Optional items QTYDescriptionSection HEAT RECOVERY SYSTEM A5 2 1 4 5 5 2 3 1 4 1 11 STEAM GENERATION Feed water tank Blow down tank Feed water pump Exhaust gas boiler Circulating pump unit Steam drum Chemical dosing unit Steam header Condensate return system Steam turbine Qenerator and condenser Piping and v,'~ steam system (s.t) Steam 8~tem pipe insulation (set) EMISSION CONTROL SYSTf¥S A6 A6.1 DE-NOx SYSTEM SCR system. includes reactQr rQU~i~~1 ammon~ inj,ctl~n .equipment, amm~ia feeding ~"'P l#~tt! ~~pl ~, a~InterconnectIon PIPIng -, ! I," , Urea storage silo tank BY QrHf~~ Piping and valves SCR syst~ ~~V OXIDATION CATALYST ~Y'T~M CO Catalyst , ;, 'I 5 0 1 5 Pege: 13 of 13D8I8 April 11. 200-' Joint StOck Company "lNTE RENERGOSER VIS" 3A, Vorontsovlkiy park. Moscow, 111630 tel:(09S)120 8496, 936 0029 fax:(09S) 936 0010, 936 -41~ E-mail: ies @Space.ru I~.. c ;. AXUHoHepMoe 06U1ecTBO IfHHTEP3HEPrOCEPBBC" J 176'30, Mocna, BopoH~A napa:.. 3A ft1\:(O9S) 120 8496, 936 0029 4JaKc:(09S) 936 0010, 936 4146 E-mail: ics @space.~ "'" t:)'1/L;- .c /1 .,N9 2003 Precision Energy Services, Inc. Mr. Ratal Berezow$ki Pro~t Manager Pages: 9. Sub: Diesel generator sets. Dear Mr. Berezowski, Please accept our excuses for the delay of several days. We tried our best 10 be ready with the proposal before April 7, but needed some more time. The present proposal is not a conStant. Any issue can be discussed and that would be our pleasure and main task to comply ~ith the requirements of the Client. Looking forward to recei ve your respond soon and further instructions. ~Best regards, ~ ~---ev' A. V .Rybinsky Executive director 1()9f "3 L INTERENERGOS'ERV1CE has considered the documents tclated to working out the feasibility study of the power supply project, installation of electric devices. and costs concerned with Crooked Creek power plan! in Alaska. In this connectjon our company presen1s the following proposals: ¥OR~ SCOPE ~F ~~PL~. ~~ -~~~~~~The main equipment includes a diesel low-speed engine manufactW'ed by the MAN BQW Diesel AlS's license (Germany - Denmark). Power is generated by means of ten diesel generators with heat Jecovery and aux11iary systems that are required for reliable plant operation. Oencxators of SGD- 7095-6.3-28 type manufactured by the Elcctrosila plant, Russia, are used. These diesels can operate using botb heavy oil fuel of up to 700 Cts viscoslt)' at SOOC and up to SOlo of sulfur con~ and diesel fuel OF 2 proposed by the CuStomer. A fuel heating and circulation S}'Stcm is provided for fuel preparation. The Russian and European manufacturers will deliver the mechanical and electric equipment in accordance with the requirements of the world standards. The design activities can be performed either by the Russian designers or by designers that the Customer proposes. The consttuction and installation works can be performed either by the Gener4l Conn-ector-the equipment Supplier. or by any other manufacturer as per the Customer request. 10 reduce tem'lS of installation wOTks of the power station the equipment will be delivered in modular confisuration. If necessary, the Supplier will also render the services of supervisor-engineers that supervise over installation, start-up, commissioning, testing, and training of the plant operating personneL A separate conttact can be concluded for after-sales service of the plant for a period of 10 or more years, as per the Customer request.Characteristics of a. single plant diesel unit of llL3SMC-S t)pe are given in the following table: 17,040-- Inmlled maximum continuous roecbm\ical t'Ating, MW L Air tc ture In the turbine house DC b"om + 8 to + 4" ~ CUrTent frecucnc:\! . H1:., i~~ ~-;;';~e. V . - - !~~ ~e-,-C~~tomer reQuest -I I~mpem~~f external ~ohn~ ~ svst=n. 0(;. i ~ +~ - lof-.sQ_(~inimum} - -- 11em~ o~temal cooling~ter ~vstem. °c 18I Time of startup from the point of a startup signal generation to the . . in Discharged gas volume at maximum continuous rating. kg!h 159420 ""Not less than 6Nmnber of sequential startups without makeup of starting air vessels - Duration of load operation h ,Scope of automation, not lower Not less than I !Third degree as per OOST R j S0783-95 and diesel as per ~~T 14.228:8.o~~ ---iI~umber of wor1C.lnQ: hours net a Ve8r. h/veM - -- - - - ~ ~~;!~ss than 8500- ~e fuel rate under tvuicaJ conditions. 2!CkW h) i 17~.' ~ylin. W 0.8 - 1,4 Circul ti ( v. 0,1 1 ervice 45 0 Note: .) calorific value of liquid fuc142100 kJ/kg (10200 kcal/kg). Environmental factors: The main factors that impact upon environment are noise, vibration. and gas exhaust taking into consideration for power plants with internal combustion engines. Noise Noise produced by a power unn is kept 'Within the ~trited norms to a. iIeate! e.xtcn\ due to. the wall panels of the building and minimum quantity of hatches, air duc1s: and otiter openings in the walls. An insulation degree of the building depends on local requirements. High requirements are not presented due to relatively low noise produced by double-contact engines. A standard noise level of engines IJ.L35MC-S does not exceed 103 dB(A) at a distance of 1 m from a noise source, while it reaches 110-115 dB(A) for four..contact engines. VIbrationHigh frequency vibration created by low-speed engines makes a structure noise about 10-20 dB below that of medium-speed engines. Excitarion sources of engine vibration are of cyclic nature and determined by rota'ting and forward~moving masses:. l-st external moments (in horizontal and vertical direction);. 2-nd external moments (in vertical direction);. guide force moment of X-type and N-type;. axial oscillation;. torsional oscillation. Vibration of the plant depends on interaction between the engine and foundation. as well as subsoil under fO\IDrl~on. Careful research of soil under the plant designed is carried out separately for each case to obtain the so-called damping effect of the subsoil. The concrete foundatioD of the engine and generator is designed in such a way that d)'namic factor are compensated, and noise and vibration levels do not increase the preset vMues. Emission levels Due to NOx, SOx. CO, particles and hydrocarbons the diesel engines impact upon environment. Reiardless of the fact that emission of low-speed engines is significantly lower in comparison with medium~speed and motor engines. technologies are available to decrease emission that could be used to meet the highest future requirements if they are provided- The values of gas emission specified in the table will not be increased for engines of llL35MC-S type at 2.5% sulfur content in the fuel. IS32I 35477040(7805 Effective power (on the engine shaft) kW 7S so100110(%) 5,4 16.7~S..3 1: A ~ - 40 . . 5.33 14.8 ~ f- I ~. 1 4 Oxygen, 02 13.16 ~ \ =~~~~~j~~3 Carbon dioxide, C03 % 5,4] Sulfurous anhydride, 802 ppm - V'.. %Water vapors, iliO 510 ppmu PRICE AND INDICES OF THE PLANT DIESEL UNIT The price of the diesel power plant, including the stand-by unit amounts to USD 100 335 840 within the scope of supply and services related to this Proposal. Price structure- I The basic com nent lant ,Equipment. including: lxl1L35MC-S 1 x SGD- 7095-6,3-28 engine unit. electric generator. 1 setauxiliary mechanical and electrical optional equipment fot: the diesel unit . 1 setstandard set of tolls and spares. 1 setsupervision over engine and generator. Taking into account 70 MW power generation under conditions of maximum. electric loads of the power plant it is required to inStall 10 diesel-generators and 1 stand-by 1n'1it Vt-ith initial data given in the table. \ I Result! Dimension I 7tWO-- J(W!1M£~HAN1~AT. POW'F.R {)F'~W ! j -/96.412 !EFFICIENCY FACTOR OF Tf{f GElIffiRAroR : 11m!,~ :J(W1IJnit ~ MW'F.'R ()F AIT~T.TA.RYMPrUA.N'~M~.~- 11., 1916i : 11,65 I ~ ~- Inr_~_1 IkW/unit I(GcaI h/unit) 1916() 16,5 -~- rnERMAl.. pO\VE.R. OUTPUT OF ~ PLANT UNDER I OPERA TION I MW /year (T caIlyeat) n glCkW h)1176--- IroEL RATE OF THE ENGINl! (ISO conditions)17 1% :v ~ !9500Kca1/kg ~-- r..:ALORIFlC VALUE OF LIQUlD 'FUEL~ I : ",,' 6 Inn~ 115 1,5 ~~ - I MIN1MUM NU}'l.fBER OF HOlJ"RS OF ELECTRIC POWER OUTPUT 18500i hiyc&r12 IUSD/pcs 1445 100[':PR'CE OF DIESEL WrrHlN mE STANDARD SCOPE OF T f~n/~~ 1111:1Mn ~R '~F- nF G~ A mR rN coupr .R~ ~F:T c /391 ) 00TPRlCE 'OF HEA T -RECOVER Y BOfi.ER OF DtSCGARGED IGb.~s .- I USDlpcs rTJSD/pccI 883 200 ~~CE OV MECHANICAL Auxn..1ARY EQUIPMENT II USD/pcs r733 290~PRIC~BI.;Bffii C)AL EOVlPMBNT'5' -~- -- SUPERV1S0RY 1NSTALLATlON OF EQUiPMENT (BY I AGREEMENT OF THE PAR-nES) lUSt),'758 G'J~ \ ICONS-fRUCTlONWORKS AND BUIL~STRUc-roRES 11 rso (Not supplied luSD[CONSTRUCT1ON OF INFRAsnUcrtJREAND ROADS INot ~li~ '8 !DESIGN WORKS (B-Y AOREE1\.fEN'tO~~~TJ~l f"%~D)19 (78'2 680)iq !USD 19 12Z 000Ijl01roTAL PRICE OF Tm: U1\U Notes: tcnns of dclivcry - FOB, port of 8t. Petersbw-g (additional agreement is possible); 2.term of after-commissioning warrant)' - 18 months'-. onnmt SCOPE OF SUPPLIES AND SERViCES Meas.unit Q-tyNameIn setIDlBSEL ELECTRIC UNrr ~-- - AUXILIARY MECHANICAL AND ELBCTRI C SYSTEMS ~ set Liquid fuel system!"'14 I setILubricaUng oil systemr'-.2 set1".3 [Circulating oil system setStarting air system1.4. I set2..5,Cooling system I sett"ire-extingUlsner system of the diesel engine2-7 ,set2.8. I ~ 12.9. Control, monitoring, signaling. 9l1d protection. system of diesel- . electric tmit 1 Too\~ and devic~ I I 1- set2.10. I Standard set of spares SERVICES') iSupcrvision works for diesel and generator13.1 iCotmnissioning works).2. I]J.I Guarantee testing I~set:3.4 Executive documentation I set! Operating manual.J.5 l ~~~ IpfJiii 1\3 ~ I, ,i j,.J ~ r &: ~ 160 IHYdrocarbons~ CH \t(]I ~ i 52.6 ] 4.84 11200. IiiS i 14,73 116;1. i Solid particle!120 \. l~ PAYMENT TERMS AS PER THE CO~TRACT 1 20 % down payment - not later than 30 days after signing the Conttact; 2 3 80 0/0 - documentary conf1!med ilTeVocable letter of credit; letter of credit tenDS can provide hold of 20% from the letter of credit sum imposed on the Seller to be paid as perforIIlance bond for proper execution of the Contract as follows: . 1 S % after delivery. installation and commissioning (in accordance with a schedule a~ by the Parties); . S % on the expiry of a Wan'anty period. This Proposal is valid till 30. 07.2003. ~:., 8 ~nn~COT .V"7COnC\~"'.T n~,... " .. * ,"",-'T .. " 95 MW ELECTRIC POWER & DISTRICT HEA TING PLANT BETHEL SITE SCOPE DESCRIPTION AND BUDGETARY PRICE ESTIMA TE NUVISTA LIGHT & POWER COMPANY DONLlN,ALASKA JUNE 2003 PREPARED BY: ESI ESI, Engineering Servl~ A Division of The Keith Companies 370 North Wiget Lane, Suite 210 Walnut Creek, CA 94598 LEAD STAFF QA PE PMDESCRIPTIONDATEBYREVISION I' DCRI RAM IWAZ ~RAM cs OCR A Proposal '"- ~ Coo...x;. - JM; T1<C ESI PROPOSAL NO.: 001878.00.009 TABLE OF CONTENTS PAGE INTRODUCTION 3 1.0 PROJECT INFORMATION 3 2.0 SITE DATA 6 3.0 CODES AND ST ANDARDS 6 MECHANICAL D ESI GN BASIS 7 CIVll., DESIGN BASIS 13 STRUCTURAL DESIGN BASIS 14 ELEcrRICAL DESIGN BASIS 15 INSTRUMENTS AND CONTROL SYSTEMS DESIGN BASIS 18 4.0 5.0 6.0 7.0 8.0 EXHIBITS: A. B. C. D. E. Plant Availability and Reliability Heat Balance Diagrams General Arrangement Drawing EPC Price Estimate Budgetary Equipment Prices from Vendors 2~2S Ttw ~ Oc;.-; :- ,,<c INTRODUcrION This budgetary estimate has been prepared to provide technical and cost information for use in a Feasibility Study being performed by Precision Energy Services, Inc. (PES). The proposed project site is Bethel, Alaska. The project described herein represents a conceptual design and is based on the information provided by PES proposal request for a 95 MW (gross output) combined cycle power plant and subsequent discussions with PES personnel. The budgetary estimSite can be refined after additional information is received regarding the project commercial operating date, site description, operating mode, load duration characteristics, and complete financial information necessary to evaluate and detennine the best practical project to suit the intended purpose. The proposed project consists of three General Electric LM6000 aero-derivative combustion turbine generators (CTG) configured as follows: for nonnal operation, 2-LM6000 CTG exhausting into a common unfired heat recovery steam generator (HRSG) and a auto-extraction, condensing steam turbine generator (STG); and for standby service, l-LM6000 CTG exhausting to a dedicated unfired HRSG integrated to operate with the STG. The proposed configuration will provide during nonnal operation the required total gross output of 95,000 kW, measured at the terminals of the generators, while at the same time deliver up to 200 ~TU/hr of thermal energy from steam extracted from the STG at 200 Psig for District Heating. Note, however, that the power block is capable of providing 98.7 MW during this winter peak district heating load (200 ~TU/hr), and 103 MW at Summer time when district heat requirement is less at 130 MMBTU/hr. District heating and plant heating loads will be provided by the Package Boiler during emergency condition. PROJECf INFORMA nON1.0 The EPC budget estimate price provided in Exhibit D is limited to the work associated with the following description. Work excluded is also listed below. GENERAL1.1 .1 Project Description The Project is an indoor combined cycle power plant with a nominal total gross output of 95,000 kW, measured at the terminals of the three generators. The project is illustrated in the General Arrangement Drawing No. 878- G-201, Rev. A included in Exhibit C. The major equipment include Three (3) GE LM 6000 CTG sets fueled with Distillate Oil No.2 and equipped with water injection to reduce NOx emission. Two LM6000 is required to run during nomlal operation, and the third unit will be for standby service to provide high plant availability. 3 of2S ". ~ c fi"'< C . . . . . One (1) normally operating single pressure, unfired HRSG designed to accommodate the exhaust gas from 2-LM6000 and will generate high pressure steam at 600 Psig and 750 deg F steam conditions (SH outlet) and equipped with Selective Catalytic Reduction (SCR) system to reduce NOx emission from 42 ppmvd to 25 ppmvd. One (1) single pressure, unfired HRSG designed and dedicated to accommodate the exhaust gas from the Standby LM6000 and will generate high pressure steam at 600 Psig and 750 deg F steam conditions (SH outlet) and equipped with Selective Catalytic Reduction (SCR) system to reduce NOx emission from 42 ppmvd to 25 ppmvd. One (1) single admission, auto-extraction, condensing STG set equipped with Air-Cooled Condenser Fuel oil No.2 skid, boiler feed pumps, air-cooled condenser, deaerator, water treatment, condensate & make up water storage tanks, condensate pumps and plant air compressors Blackstart generator and startup & Standby package boiler Electrical and control equipment: main and auxiliary transformers, MCCs, Switchgear, and control system. Work Excluded The following is not included in the EPC price estimate: . . . . . . . . . . Fuel oil unloading system Transportation and dock loading & unloading facilities Fuel Oil Storage Tanks and forwarding pumps Clearing, grading and site excavation All foundations and platforms to suit the permafrost condition at the site Electrical system beyond the generator breakers (main step-up transformers & switchyard equipment not included) Raw water supply system Wastewater discharge/treatment system Interest during construction (!DC) No soft costs included; i.e.; project development, Owner's Engineer, permitting, legal, financing fees, etc. 1.2 SPECIAL CONDmONS The foundations and required platfonn due to permafrost condition at the site will be by others. The power plant shall be designed with black start capability. 4of2S -n.. ~ Ca OPERATING MODE1.3 During normal operation, two of the LM6000 CTG will be in combined cycle mode while one of the CTGs is in standby service. The exhaust gas from the two normally operating CTG will discharge into a common HRSG to generate steam that is introduced to an auto-extraction, condensing STG where up to 165,000 #/hr (200 MMBTU/hr) of steam is extracted at 200 Psig for District Heating. When one of the two active CTGs is taken out of service, the third and standby CTG with a dedicated and smaller HRSG will be used to maintain full plant electrical output. It was assumed that the plant operating permit will allow startup of a CTG using the bypass stack without an SCR module to reduce Nox emissions. Operations using the bypass stack will be limited to starting a CTG. All other operations will have the CTG exhaust pass through the HRSG and SCR, maintaining a 25 ppmvd Nox emission level. The power plant will be provided with a Blackstart Diesel Engine Generator and a package boiler for use during initial startup and testing of the plant, and on the event that the 2 to 3-CTGs were taken out of service at the same time. The performance of the plant at nom1al conditions during summer and winter seasons are depicted in the Heat Balance Diagrams included in Exhibit B. The proposed project has the following performance characteristics with the 2- LM6000 CTG at full load condition: Summer 103 130 7,777 43.9 Gross Output (Gen. Terminal), MW District Heating Load, MMBnJ/br Gross Plant Heat Rate, BnJ/kWhr (LHV) Gross Plant Efficiency, % Winter 98.7 200 (max.) 8,115 42 Thus, the plant will be normally operating from 92% load (summer) and 97% load (winter) for a 95 MW gross power requirement. BOUNDARY LIMITS1.4 The work was assumed limited to be within the site boundary limits or terminal points listed below. .4 1.4.2 1.43 Electrical equipment and materials up to the generator breakers (step-up transformers & switchyard by Others) Raw water piping term--.ina~ three feet from the building wall The following piping was assumed to terminate three feet from the building wall: 1.4.3.1 Industrial and domestic wastewater piping 1.4.3.2 Fuel oil piping 1.4.3.3 Raw water supply piping 5 of 25 ~~~ ~ PLANT DES I G N G UARANTE ES1.5 Gross power output produced by the plant will be 95,000 kW when using Fuel Oil No.2 and operating on a mode described above and at a design ambient temperature of 45 deg. F. Emissions from the HRSG stack during normal operation will not exceed the emission concentrations listed below when burning the Fuel Oil No.2. 25 ppmvd at 15% Oxygen, corrected 5ppmvd NOx NH3 Slip SITE DATA2.0 S ITE E NVIR 0 NMENT2.1 2.1.1 2.1.2 2.1.3 Plant Elevation Above Sea Level: 500 ft. Ambient MaxIMin. Temperatures: 500Ft minus 60°F Design Air Temperature, 45°Ft40% Dry Bul~/oRH Wind: 100 mph per UBC Seismic: Zone IV, per UBC 2.1.4 2.1.5 CODES AND STANDARDS3.0 The plant will be designed and constructed in accordance with the following list of codes and standards. The codes and standards utilized will be the latest editions in effect on the date of the engineering service agreement. In the event these codes and standards are subsequently modified by their issuing agency, and should Owner desire such modifications to be incorporated into the proposed plant, then any resulting additional cost, project delays, changes in performance guarantees, etc., will be considered a change in the work scope. ACI AISC ANSI ASTM ASME AWS C11 HEI InS IEEE ISA NEC OSHA NFPA . . . . . . . . . . . . . . American Concrete Ins1itute American Ins1itute of Steel Construction American National Standards Institute American Society for Testing Materials American Society of Mechanical Engineers American Welding Society Cooling Tower Institute Heat Exchange Institute Hydraulic Institute Standards Institute of Electrical & Electronic Engineers Instrument Society of America National Electric Code Occupation Safety & Health Act National Fire Protection Agency 6 of 25 on- ~ 00;...,,-- ASME B31.1 TEMA UBC NFPA UMC UPC . . . . . . Power Plant Piping Tubular Exchangers Manufacturer's Association Uniform Building Code National Fire Protection Code Uniform Mechanical Code Uniform Plumbing Code MECHANICAL DESIGN BASIS4.0 PLANT A V AlLABll.JTY AND REUABILITY4.1 To further enhance plant availability and reliability, auxiliary equipment will have redundancy, arranged either as 2 x 100% capacity or 3 x 50% capacity units, as practicable. In additio~ only reputable manufacttIrers will be considered as suppliers to the project to ensure quality. See Exhibit A for discussions on plant availability and reliability GAS TURBINE GENERATOR (GTG)4.2 Three (3) GE LM6000 aero-derivative gas turbine generators will be used in the project. Each unit is equipped with the basic GTG scope of supply: Inlet screen and bellmouth seal. Fuel oil system complete and self-contained on the unit for connection with customer's supply piping. . Air-cooled generator - 13.8 kV, 60 Hz, 3600 RPM, 71 MVA, and 0.85 pc. Low maintenance brushless excitation system complete with neutral and line cubicles with CTs, surge protectors and lightning arrestors. . Acoustic and weather enclosure. AC internal lighting and redundant ventilation systems. . Multi stage air inlet filtration system including screening, pre-filter, final barrier filter, intake silencer, and custom designed ducting to plenum chamber. Pre-engineered structmal support hardware included. . Combustion air heating coil. Electro-hydraulic start system.. Air-cooled lube oil system for gas t\n'bine and generator each with duplex filters and all stainless steel piping. Axial circular exhaust discharge flange -nw~~ITKC 7of2S Fire and gas detection and CO2 extinguishing system serving both turbine and generator compartments. . Unit control panel for control room mounting includes Woodward fuel management system, programmable microprocessor for sequencing, generator metering, Bentley Nevada 7200 vibration monitoring, CRT annunciation of alarms and shutdowns, and RS-232 link for data logging. . 24V DC battery and charger assembly . Custom designed filter house structural support and associated service ladders and platforms. . Generator factory testing to IEEE 115 standards. Full load string test of gas turbine generator set at assemblers' factory. . Ten (10) sets of drawings, data package and O&M manuals. . Training course for up to ten (10) customer personnel. . 4.3 HEAT RECOVERY STEAM GENERATOR (HRSG) AND STANDBY BOILER The unfired HRSG will be a single-pressure, two drum, natural circulation, top supported unit. Heat absorption surfaces will be mounted in factory-assembled modules to facilitate construction. Heat absorption modules will include a superheater, evaporator, economizers, and condensate heater. The HRSG will also include modules for the SCR Cata1y~ a transition duct connecting the GTG and the HRSG, and a free - standing 80 feet high stack. Some of the design features of the HRSG will include: All tubes will be formed with extended surface arranged inline for ease of inspectio~ cleaning, and maintenance. In additio~ access cavities will be provided between each module. . The inlet ductwork will include a gas distribution system for uniform temperature and flow upon reaching the duct burners or superheater bank. The inlet duct will include multiple layer insulation. Two-drum design - steam and mud dnmls.. Modular constl1lction with integral circulators to minimize field welding of interconnecting risers and downcomers. Modular construction also allows factory hydrostatic testing to assure ease of installation. . Maximized module size to reduce foundation cost and area requirements. . The HRSG will be top-supported to minimi7-C upper drum movement and . lof2S 'nw~Ca " eliminate expansion joints in the casing around the upper drum. Top-support also simplifies upper drum interconnecting piping. A packaged type water tube boiler will be installed for use during startup and to provide steam for freeze protection, building heating on the event that all the three CTGs are not available for service. STEAM TURD INE G ENERA TOR4.4 The steam turbine will be a single admissio~ auto-extractio~ and condensing unit The steam turbine steam exhaust flow will be upward and connected to an air-cooled condenser. The steam turbine will service both the normally operating HRSG and the standby HRSG, but sized to handle steam generation from only two LM6000 in operation while delivering 130 MMBTU/hr of thermal energy at 200 Psig steam for district heating. The auto-extraction port will be at 200 Psig and capable of delivering up to 200 MMBTU/hr thermal energy for District Heating. The air-cooled STG is rated at 11 MW, 13.8 kV, .85 pf and 13 MV A. The STG will be supplied complete with skid-mounted lube oil and control oil systems, local control panel, lineside and neutral cubicles. MECHANICAL SYSTEMS4.5 4.5.1 Steam Systems The HP steam generated in the HRSG will be at around 600 Psig/750 deg. F at the superheater non-return valve outlet. The steam temperature will be set and controlled at this level by a spray attemperator before it is directed to the steam turbine generator. Appropriate steam turbine bypass lines and drain lines will be installed for start-up purposes and emergency operation. 4.5.2 Feedwater System The three (3) 50% capacity feedwater pumps take suction from the deaerator and deliver deaerated feedwater through the condensate heater and economizer and then to the boiler drum. The pumps will service both HRSG. The pumps will be provided with minimum flow recirculation line back to the deaerator. The flow control valve will maintain the water level in the steam drum to pre-determined range. The pumps will be capable of delivering feedwater to the HRSG at a pressure at least 3% above the highest safety valve setting on the HRSG, 9 of 25 '"-~-ITKC as required by the ASME code, The pumps will be horizontal multi-stage centrifugal type. The pumps will feature dual volutes for radial balance and opposed impellers for axial balance. The pumps will be capable of withstanding severe load transients caused by steam turbine generator trip and the resulting full load rejection. The feedwater pumps are product lubricated. 4.5.3 Condensate System The system includes the air-cooled condenser and three (3) 500/0 capacity condensate pumps. The pumps will be vertical can-type to provide the necessary net positive suction head for unit having a vacuum suction pressure. The pumps take suction from the hotweIl or condensate tank of the air-cooled condenser. The pumps transfer the condensed steam in the air-cooled condenser to the deaerator through the condensate heater. Excess inventory of condensate due to load changes is rejected to a condensate/makeup storage tank. The air-cooled condenser will include freeze protection, and comes complete with steam jet air ejectors for startup and removal of uncondensable gases during normal operation. The deaerator will be spray-tray type, and will service both the HRSG. The deaerator storage tank will be sized for a minimum 10-minute hold time, at design load and will be designed to operate at stable condition over the operating load range of the plant. The equipment will be installed on top of the normally operating HRSG. 4.5.4 Makeup Water System Two (2) 100% makeup water demineralizer systems will be provided. The systems will include makeup water storage tank from where makeup to the HRSG is then pumped from this tank to the condenser hotwell or to the deaerator. The system will also provide water for injection in the CTG to control NOx emission. 4.5.5 Auxiliary Cooling System The system will be air-cooled and is used for cooling miscellaneous equipment such as the lube oil of the steam turbine generator, sample coolers, and other miscellaneous equipment coolers. Two (2) 1000/0 10 ol2S cooling water pumps will be provided. Plant Water Systems The plant water system includes the raw water supply system, firewater and service water system, and HRSG makeup water system. 4.5.6.Raw Water Raw water supply is by others, and is assumed delivered to the plant with piping interconnection located 3-feet from the building wall. 4.5.6.2 Fire Protection Systems The fire protection systems will include redundant fire- water pumps including a diesel engine driven unit The source of water is assumed coming from the same source for the raw water supply. Appropriate detection, alarms will be included in strategic locations and system actuation will be automatic where necessary. Chemical Feed Systems The chemical feed systems include 4.5.7.1 HRSG Chemical Feed Systems PhosRhate Feed System Phosphate feed to the HRSG steam drum will be controlled to maintain the desired phosphate residual and alkalinity in the boiler water. The complete feed system will be skid-mounted consisting of: One (1) 100-gallon stainless steel tank with hinged lid One (1) electric motor driven tank mixer Two (2) phosphate piston-diaphragm pumps One (1) dissolving basket. . . . . Organic Feed System Organic feed will be introduced to the deaerator to maintain the desired specific conductance in the condensate. The complete feed system will be skid-mounted consisting of: One (1) l00-gallon stainless steel tank with hinged lid One (1) electric motor driven tank mixer Two (2) piston-diaphragm pumps. . . . II «"25 OXV2en Scaven2er Feed System This chemical is feed into the deaerator to remove dissolved oxygen in the condensate. The chemical type will be determined later. The complete feed system will be skid- mounted consisting of: . . . One (1) l00-gallon stainless steel tank With hinged lid One (1) electric motor driven tank mixer Two (2) piston-diaphragm pumps. 4.5.8 Solid & Liquid Waste Discharge Regeneration waste from the Demineralizers will be shipped to the equipment supplier for treatment and disposal. HRSG blowdown will be discharge to an industrial liquid waste area. Cost included for this terminates at a piping connection located three feet from the building wall. Spent catalysts will be shipped to the supplier for handling. 4.5.9 Potable Water The plant potable water system will be from the raw water supply system. It is assumed that the raw water system when delivered to the plant by others (out of scope) is already treated suitable for human consumption. 4.5.10 Heating, Ventilating and Cooling 4.5.10.1 Building Freeze Protection Freeze protection for the building and various process systems, as applicable shall be provided with freeze protection by steam or electrical means. 4.5.10.2 Building Ventilation Wall mounted fans and intake louvers will be provided for the building. Combustion air will be admitted through louvers located on the upper half of the building walls. 4.5.10.3 Operating & Personnel Areas HV AC systems will be provided for the control room and electrical room only. The electrical room will be ventilated and cooled to maintain less than S5°F temperature. Control rooms will be maintained at 6soF. Introduction of outside ambient air was assumed sufficient for this purpose, i.e.; no mechanical cooling equipment is necessary. The rooms will be heated with ".. ~ ""'-I TKC 12 of2S ~ as required for operator's comfort. 4.5.1 Compressed Air Systems Redundant compressed air system for instruments and for maintenance is included complete with dryers, filters and Air receivers. 4.5.12 Ammonia Injection System The system will provide the ammonia solution for injection to the SCR Catalyst for NOx emission reduction from 42 ppmvd to 25 ppmvd. The system consists of aqueous ammonia storage tank, 2 x 100% capacity supply pumps, flue gas ducted from the HRSG to the injection ski~ and an evaporator. The Ammonia is then introduced to the injection grid located upstream of the SCR Catalyst in the HRSG. The storage tank will be sized for optimum delivery of ammonia to the site. crvn. DESIGN BASIS5.0 Precision Energy Services, Inc. is handling this with another consultant familiar with the site and expert on permafrost construction. SITE WORK5.1 Not Included. CUT, Fll..L, AND CO MP A cr5.2 Not Included. DEWATERING5.3 Not Included SPOILS REMOV AL AND HANDLING5.4 Not Included 5.5 SITE IMPROVEMENTS Not Included SURVEYING5.6 Not Included 1301'25 'nw -. ~ -:-;.,.1~C tjic 5.7 STORM DRAINAGE Not Included LANDSCAPING Not Included 5.9 FOUNDAllONS Not Included 6.0 STRUCTURAL DESIGN BASIS BUILDINGS The equipment will be located indoor. The building will be designed to conform to site conditions and architectural environment The building will provide rooms for adr!:1Jnistration and control functions and will also mitigate the noise and visual impact The building will be of prefabricated "sandwich" steel walls and roofing (steel-insulation-steel) and structural steel frame type. . I," t ~ , The building will be constructed on steel piles support and building platform floor will be poured concrete. The building floor or platform will be elevated, for permafrost considerations, with sufficient clearance with the ground to allow snow to blow through under and to prevent snow accumulation in and around the building to maintain ventilation. The steel piles and platfoml are not included in the scope. STRUCTURAL STEEL SUPPORTS Structural steel supports will be designed and erected per the latest requirements of the American Institute of Steel Construction and the requirements of the OSHA. Major equipment and systems that requires structural steel design include elevated supports for piping and ductwork support. PLATFORMS Access platforms, with ladders and/or stairs conforming to the Occupational Safety and Health Administration requirements will be provided. Access will be provided for normal operation and maintenance of plant. 14 of25 EMBEDMENTS AND ANCHORS6.4 ~ Miscellaneous embedments for support and anchorage of equipment and structures against concrete will be provided in such a manner as to provide proper field alignment. PAINTING6.5 The building, equipment and structures will be painted in accordance with standard industry practice and appropriate for the location of the project. ELECTRICAL DESIGN BASIS7.0 The plant electrical systems are designed to supply power to auxiliary electrical equipment and systems, and deliver the generated power to the ~n~i~5ion/distribution system (yet to be constructed). The system included herein is up to and including the main step-up transformers, i.e. no electrical switchyard equipment is included. POWER STEP-UP SYSTEM7.1 The generator step up transformers is not included in the scope of work. POWER GENERATION & DISTRIBUTION SYSTEMS7.2 The power generation system will consist of a three combustion turbine generators and a steam turbine generator. The generated power is connected to four step-up power transfonners located outside the building. Auxiliary transfonners, located near the main step-up transfomlers, will be installed for the plant's auxiliary loads. The generator breakers and transfomler breaker will foml an assembly of 15 kV class switchgear located in the building. Connection between these elements and other related plant electrical systems will be provided by bus duct, conduit, or tray and cable. The generated power will be at 13.8 kV, 3-phase, 3-wire, 60 Hertz. A diesel engine generator will be installed for blackstart and for use during the startup & testing of the plant. The plant's distribution system will be at 13.8 kV, 4.16 kV and 480 volts three phase and will consist of transformers, switchgear and motor controllers. Medium Voltage Switchgear The generator switchgear will be arranged in an indoor lineup in the building. Distribution Transformer(s) Distribution transformer types to be evaluated based on location. Indoor transformers will be dry type, and outdoor transformers will likely be oil filled. 15«15 ~ ~ Ca 1j,,<c 7.2.3 Motor Controllers Motor controllers are also included. 7.3 MOTORS Integral horsepower motors will be 460 V AC, or 4,000 V AC 3 phase induction motors. Fractional horsepower motors will be single phase, or three phase induction motors. Motors will normally be NEMA design B with Class B or Class F insulation. (If the load has unusual torque requirements, motors with other NEMA design characteristics may be used.) Generally, motors 250 HP and larger will be 4000 V AC. Motors Y2 through 200 HP will be 460 V AC, 3 phase. Motors less than Y2 HP will be 115 V AC single phase. Motors enclosure selection will normally be according to the following criteria: Outdoors or dusty/dirty environment - WPll or TEFC; indoors in generally clean environment - ODP; covered in normally clean environment - WPI or ODP. Small motors may be TEFC or ODP. GROUNDING7.4 TheGrounding requirements to be established as part of detailed design. following is an initial guideline. Grounding will be provided to insure safety to personnel and equipment in case of electrical equipment failures and to prevent fires and damage from lightning and/or static electricity. Grounding will be in accordance with IEEE Standard Publications No. 80 and 142. The generator neutral will be high resistance grounded. This will be through a grounding transformer. The low voltage (480V) distribution system will be solidly grounded through the distribution transformer's neutral. The medium voltage (4160V) distribution system will be low resistance grounded through distribution transformer's neutral. Non-current carrying part of electrical equipment will be grounded from the source by a separate wire to the equipment. Large power transformers and generators will have the neutral connected to the plant ground loop where applicable. Large equipment encloSlU'eS will be connected to the plant ground loop. The ground loop will consist of buried #4/0 A WO ground wire with driven ground rods located strategically throughout the plant. Taps from the ground loops to Individual equipment will be #2/0 A WO. Grounding design will be based on maximum soil resistivity. Foundation piles will be connected to the grounding system to form part of the earth connection. LIGHTING SYSTEM7.5 High-pressure sodium (HPS) type fixtures will be used for outdoor areas. All outdoor lighting will be automatically controlled using photoelectric cells. In the offices, conference room, laboratories, rest rooms and electrical equipment room, fluorescent type fixtures will be used. The control room lighting will use 16 of 25 TN ~ Ca; ~IT1<C dimmable or switched arrangements for adjustable light levels. Other indoor areas will use fluorescent, incandescent, metal halide or HPS, depending on the task. Emergency exit lighting will be provided in areas where such lighting may be required to leave the area on failure of the normal power source. Emergency exit lighting will be incandescent. Emergency exit lighting fixtures will be provided in the control room and turbine/generator building. I!"""-,~ ~ ~~ The installed illumination levels are tabulated below. The foot-candle values shown are the average minimum maintained levels as measured at ground level for outdoor areas and 30 inches above the floor for indoor facilities. The maintenance factor used will be 0.80. Outdoor Facilities 5 fc 5 fc 2 fc 0.5 fc 0.5 fc 2 fc Stairs and Platforms Ground Level Areas Switchyard Storage Tanks Roadway and Parking Areas Water treatment Interior Areas 5-50 fc (dimmable) 30fc 30fc 30fc 20fc 10 fc Control Room Offices Conference Room Electrical Equipment Room Rest Rooms Other General Areas 7.6 COMMUNICAnON SYSTEM In plant communication system is included in the estimate. Land telephone line to outside of the plant is also allowed. '7'7 CAmODIC PROTECTION There is no cathodic protection allowed in the estimate. 7.8 D.C. SYSTEM The existence of a 125 VDC system will depend on the switchgear control requirements and turbine auxiliaries. A 125 VDC system will be provided for the turbine emergency lube oil pump and control for the switchgear. System capacity will include the switchgear load plus DC lube oil pump requirements as stated by the turbine generator manufacturer. The charger will be sized for an 8-hour recharge cycle. Battery system will be Exide or equal. 17 of25 7.9 UPS SYSTEM A reliable source of power to instruments and shutdown networks will be furnished as dictated by process control requirements. This power supply will be a static solid-state UPS (uninterruptible power supply) system consisting of a rectifier and inverter with battery backup. The UPS system capacity will be at least 125% of the load for 20 minutes of running time after power failure. The minimum size will be 15 kV A. Upon loss of power, the batteries will service the critical loads. CONDUITS & TRAYS Conduits and trays will be based on good engineering and industry practice and as appropriate to site conditions. POWER WIRES AND CABLES Wire and cables will be based on good engineering and industry practice and as appropriate to site conditions. INSTRUMENT WIRES & CABLES Wire and cables will be based on good engineering and indUS1I"y practice and as appropriate to site conditions. LIGHTING TRANSFORMERS & LIGHTING BOARDS Lighting transformers, where required, will be the indoor, dry type. Lighting and distribution panel boards will be supplied for feeding lighting, receptacles and small loads as required. RECEPTACLES Sufficient 120 V receptacles will be located so equipment can be reached with extension cords not over 50 feet in probable work areas. In all enclosed rooms, sufficient receptacles will be-placed to provide convenient access. 8.0 INSTRUMENTS AND CONTROL SYSTEMS DESIGN BASIS 8.1 GENERAL Instrument and control systems design will be engineered to provide for the safe and efficient start-up, operation, and emergency shutdown of the power plant. 8.2 TYPES OF CONTROLS The following design basis is assumed for purposes of the concepttlal design or this estimate. The plant control system will provide the following: 18 of25 Major equipment and associated auxiliaries will be operated from central control room. . l.~ f-~. "-. Remote indication and group alanns are furnished for local control packages. . Control System A Control System will include the following equipment: Two (2) operator displays will be provided. These will be CRT based consoles with function keyboards. They will provide the operator with an interactive, visual display of all plant operations. They will include plant data highway interfacing and data storage devices. Local Control Panels8.2.2 Locally mounted panels may be utilized for the air compressors, turbine- generator, demineralizers and other miscellaneous systems. CONTROL SYSTEM LOOP COMPONENT DESIGN8.3 Major plant systems to be controlled and monitored are: 1. 2. 3. 4. S. 6. Combustion Turbine/Generator Systems Heat Recovery Steam Generator Systems Steam Turbine Generator System Condensate, Feedwater and District Heating Systems DemineralizerSystem Plant Monitoring System Gas Turbine Generator Systems The gas turbine generators are supplied with a dedicated microprocessor based control system. It contains the unit metering, protective relaying and control switches. The control system provides control functions including: fuel, air and emissions control; sequencing of turbine fuel and auxiliaries for start-up, shutdown and cooldown; monitoring of turbine control and auxiliary functions; protection against unsafe and adverse operating conditions. The plant control system will interface to the combustion turbine control system through a data link. The GTG is designed for a "pushbutton" start locally or from the control room. Its operation is fully automatic. The remote control from the control room is accomplished from the plant control system CRTs via a digital link from the GTG control system. The plant control system logs analog and digital data. Under abnormal conditions the GT load will be lowered for short durations and will operate inefficiently at lower loads. 190(25 8.3.2 Steam Turbine Generator The STG will be supplied with standard complete with a stand alone control handling all closed and open loop turbine controls. The control system will include: 1. 2. 3. 4. S. Woodward Governor 505E based turbine loop controls Allen Bradley PLC module for turbine safety trip functions Allen Bradley PLC for turbine auxiliary control Generator A VR Generator protection relays and synchronizing equipment. 8.3.3 Heat Recovery Steam Generator (HRSG) Systems Control of the HRSG will consist of the following loops under control of the plant control system to safely and efficiently maintain steam header pressure and feedwater to match turbine-generator requirements during start-up, normal operation, upsets, and shutdown. The HRSG control system will be comprised of the following subsystems: 2. 3. 4. HRSG Drum Level Control System Steam Temperature Control Plant Service Steam Temperature Control Deaerator Level Control 8.3.3.1 HRSG Drum Level Control System The HRSG drum level control system will be a conventional three-element control system using main steam flow as the feed- forward signal, drum level and feedwater flow as the feedback signals. Based on demand, the system controls a feedwater control valve to adjust feedwater flow to the boiler. The system will be designed to operate on single element control using drum level only during start-up. 8.3.3.2 Main Steam Temperature Control System The purpose of this system is to maintain the final superheater outlet temperature at a manually set value with minimum fluctuation. This is a single station, Cascade-type control system in which the final superheater outlet control unit serves as the master or primary control unit and the desuperheater outlet control unit serves as the slave or secondary control unit. Plant Service Steam Temperature and Control8.3.3.3 Steam header temperature will be controlled through a desuperheater with a temperature controller that will regulate feedwater flow to maintain temperature. 8.3.3.4 Deaerator Level Control System The deaerator level will be controlled from the control room. If 20 of25 Ttw ~ Ca ok-1'-1< C the level is low, make-up will be admitted from the demineralized water storage tank. Overflow will be discharged to the condensate tank. Level switches will be provided to alaml high and low levels and to trip the feedwater pumps on low-low level. Feedwater System Boiler Feedwater systems will be provided with pump minimum flow control. Boiler Feed Pump Minimum Flow Control Feedwater pump m1n1mum flow control is furnished by the pump manufacturer. This nomlally consists of an automatic recirculation control valve, which will circulate water back to the deaerator during periods of low HRSG feedwater demand. Demineralizers The Demineralizer system will be equipped with a programm~le controller (PLC). The water conductivity will be monitored in the control room. 8.3.6 Plant Monitoring System All required plant parameters would be monitored and indicated, alarmed and/or recorded in the control room to facilitate the plant operator with control of the plant. The gas turbine will be interfaced to the plant control system for monitoring and trending. Local indicating devices, pressure gauges, thermometers, etc., will be furnished for local monitoring of selected plant parameters. Grab sample ports will be provided on the condensate, feedwater and main steam lines for periodic analysis for other contaminants. Sample coolers, as req~ will be provided. Air Quality Monitoring Equipment Equipment and instrumentations will be provided to monitor continuously the air emissions in accordance with the requirements of the air permit. Stack continuous emissions monitoring systems (CEMS) will be extractive type equipment. Continuous emissions monitoring stack gas sampling and instrumentation equipment for CO, 02, NOx, and SOx will be provided. The analyzers will be mounted at the base of the stack. The monitors will be EP A certified. A data acquisition system and EP A reporting will be provided. 21of2S ~ 1<.-1 Ca - .- EXHIBIT A PLANT A V AILABILITY AND RELIABILITY Plant operating availability and reliability depends on the following major areas: Engineering & Construction Maintainability and Operability Equipment and Manufacturers System/Equipment Redundancy Operating & Maintenance Practices Safety . . . . . . Engineerin1!: & Construction High plant availability and reliability starts on the drawing board coupled with the construction company of the project. This is done through contracting with a reputable engineering and cons1ruction company having the following characteristics: . . . . Extensive and recent experience on similar project Excellent track record and client references High caliber staff of professional engineers and managers Good Quality Assurance and Quality Control Program Use of good engineering and design practices including; constructability, operability, maintainability, and adherence to safety Maintainabilitv and ODerabili!y The objective of plant maintainability and operability is to minimize the complexity and time required for maintenance and to operate the plant with minimum number of operator surveillance. This is generally accomplished by the following: . . . . . . . . . Using equipment having features of low maintenance design Equipment designed to be maintained in-place with minimum disassembly and minimum usage of temporary scaffolding/rigging and handling tools. Installation of permanent maintenance platforms where required Accessibility and adequate space around equipment Permanent cranes and hoists where practical Environmental protectio~ where necessary Equipment and system design selections based on minimizing operator attention Automatic startup and shutdown operation Manual intervention features of automatic processes Equipment capacity selection to provide maximum turndown, as may be required Ttw ~ "",,-I TKC 22 0(25 . . Monitoring of systems and equipment to provide operators infonnation for safety and indications for required maintenance Remotely located control panels properly positioned for operator's visual and physical access in the control room Local control panels properly positioned for operator's visual and physical access Adequate lighting, ventilation and acoustic softening on operational areas Accessible valves, switches and other instruments . . . Eauinment and Manufacturers The objective here is to procure reliable equipment and to shorten downtime with the availability of Service Representatives and proximity of service shops. . . Procure equipment from leading and quality manufacturers that has excellent track record in the industry or similar applications Proximity and responsiveness of manufacturer's Service Representatives when called to assist Proximity of manufacturer's repair or overhaul shop. Svstem/Eauioment Oesi2n and Redundancy The primary objective here is to provide reliable operation by providing system and equipment design that has been used extensively & successfully in similar application and redundancy where practical. Systems or equipment, by their nature of service, requires frequent maintenance or whose loss would cause unit or plant outage designed with redundant system or equipment. Use of system and equipment design that have been applied in similar applications exhibiting high availability and reliability . . Oneratin2 & Maintenance Practices Perhaps this is the most significant factor affecting the reliability and availability of a plant. The objective here is to minimize unscheduled shutdown of the plant by a well planned operating and maintenance procedures or practices. Some of the elements of good O&M practices are: . . . . . . Having operating staff with the right training and educational credentials Concise, easy to follow maintenance and operating procedures Diligent monitoring and trending the systems and equipment performance Preventive maintenance as recommended by equipment manufacturers Adequate spare parts inventory Membership in a spare engine pool Good housekeeping practices 'n18 1<..-1 "'"'-I TKC23of2S ~m:tY Prevention of accidents and resultant injuries contributes significantly to plant availability and reliability. Here are some key OSHA items to consider: . . . . . . . Any hazardous materials should be stored and handled as required by applicable codes and standards Rotating equipment shall be provided with appropriate guards against accidental direct contact by operators and dropped tools that could ricochet to cause injuries or damage to sensitive equipment, instruments and devices. Surfaces that are warmer than 120 degrees F that are accessible to operators during routine maintenance and inspection procedures should be insulated. Comfortable working environment Operators free of prohibited drugs and alcohol Adequate lighting and ventilation Good housekeeping practices ~~~ITKC 24 of2S EXHIBITB HEAT BALANCE DIAGRAM EXHIBITC CONCEPTUAL GENERAL ARRANGEMENT DRA WINGS-COMBINED CYCLE EXHIBITD BUDGETARY EPC PRICE ESTIMATE (with scope exclusions) EXHIBIT E EQUIPMENT BUDGET PRICES FROM MANUFACTURERS 250(25 GEPROPOSAL TURNKEY COST ESTtMA TE COMBINED CYCLE POWER PROJECT BETHEL, AlASKA Jun-O3 POWER CONFIGURATION: 2-LM6000 CTG x 1-HRSG x 1-STG STANDBY: 1-LM6000 CTG X 1-HRSG COST $ REMARKS $ ENGINEERING AND DETAILED DESIGN 6.874.000 6,874,000 See Exclusions noted below EQUIPMENT PROCUREMENT See ExcJusions noted below COMBUSTION TURBINE GENERATORS 3 x LM6000 CTG Package 41.500.<XX>price from GE HEAT RECOVERY STEAM GENERATOR 2-LM6QOO EXHAUST -NORMAl OPERA TJON 1-LM6000 EXHAUST -STANDBY 7.000,000 3,700,000 Nooter-Eriksen price used (Deltak also contacted) STEAM TURBINE GENERATOR 3.650.000 D-R price AIR-COOLED CONDENSER 1,800,000 adjusted original Marley price BALANCE OF PlANT EQUIPMENT:See Exclusions noted bejc)w BOP-MECHANICAL EQUIPMENT BOP-ELECTRICAL EQUIPMENT BOP-INSTRUMENT A TlON/CONTROL 7.500,000 5,500,000 3,000,000 SPARE PARTS 750,000 74,400,000 CONSTRUCTION MECHANICAUPIPING ELECTRICAl INSTRUMENTATION/CONTROLS ARCH ITECTU RAUCM LJSTR UCTU RAL ST ARTUP/COMMISSIONING See Exclusions noted below 6,500,000 4,500,000 3,500,000 6,300,000 3,000,000 23,800,000 MISCELLANEOUS BOND AND INSURANCE CONT1NGENCY 2,500,000 10,507,400 13,007,400 TOTAL EPC PRICE $/Kw 118,081,400 797.85 See Exclusions noted below EPC Price qualifications (work exduded): 1. Site dearing, grading, excavation and paving of parking areas 2. All foundations and platforms to suit the pennafrost conditions at the site. 3. Transportation and dock loading/unloading facilities for equipment 4.Fuel oil unloading system, storage tanks, forwarding pumps 5. Main Step-up Transformers & Switchyard (electrical scope ends at the generator breakers) 6. Raw water supply system 7. Waste water discharge/b'eatment system 8. Interest during construction 9. Soft costi.e.: project development, Owner's Engineer, Owner's management cost, financing fees, legal fees, pennitling and other consultants costs AlaskaEPC for lM6OOOJuneO3.x1s 6117/2003 ATTACHMENT 9 Nuvista Light It Power Co. COMBUSTION TURBINE POWER PLANT BETHEL, ALASKA SITE DEVELOPMENT, EARTHWORKS, FOUNDATIONS AND BULK FUEL SEPTEMBER 2, 2003 Prepared by: Mike Hendee, P.E. 1~ Eat 51st Avera. Vca: (807)273-1~ AnchIxage, AJask8 ~ Fa: (901) 273-1831 ATTACHMENT 10 Williams Alaska Petroleum Inc. Product Specifications: # 2 Blended ( -15 0 F) Heating Fuel Alternative Name: Product 43 SPECIFICATION 1 TYPICAL 2 n3 ASTM TEST METHOD PROPERTIES D524 D2500 01500 D 130 D86 0.15 Max- 58 Max (-50 Max) 2.5 Max No3Max 0.12 -12 <0.5 18 Report 419 Max (215 Max) Report 550 Max (288 Max) Report Report Report 100 Min (38 Min) 35.0 Min 0.876 Max 7296 Max 311 359 485 577 608 0.5 D93 D1298 118 38 0.8349 6.96 D 2015 D97 D4294 D445 D2709 Report - 60 Max (-51 Max) 0.30 Max 1.3 -2.1 0.05 Max 134,716 -15 0.28 2.04 Nil Carbon Residue on 10 % BTMS, wt % Cloud Point, 0 F (0 C) Color Copper strip Corrosion, 3 hr @ 122 0 F (50 0 C) Distillation, 0 F (0 C) Initial Bolling Point 10% Evaporated 50% Evaporated 90% Evaporated Final Boiling Point Residue, vol % Recovery, vol % Flash Point, 0 F (0 C) Gravity, API @ 600 F (15.6 0 C) Gravity, Specific @ 60 0 F Density, Iblgal @ 60 0 F (15.60 C) Density, kg/m @ 15.60 C Heating value, BTU/Gal (gross) Pour Point, 0 F (0 C) Sulfur, (wt %)VIscosity, cSt @ 104 0 F (40 0 C) Water And Sediment, vol % 1.) Based 00 ASTM D396-98. Table 1. "Detaled ~Wements for Fuel QIs'. 2.) Typk:aI!)R)dud quality subject to change with., specified limits. 3.) Typk:eI!)R)dud data based 00 pre 1999 resuls. ~jAf ~~ :;'1' --=~ Approved by: Current Revision: Previous Revision: April, 1999 Williams Alaska Petroleum Inc. Product Specifications: # 2 Diesel Fuel Alternative Name: Product 46 SPECIFICATION 1 TYPICAL 2 n=176 ASTM TEST METHOD PROPERTIES 0482 0524 0 4737 02500 01500 0130 086 0.01 Max 0.35 Max 40Min Report 2.5 Max No 3 Max <0.001 0.08 49.9 8 <0.5 1 Report Report Report 540-640 Report Report Report 126 Min (52 Min) 30.0 Min 0.8762 7.296 409 497 551 588 609 0.8 98.9 182 33.2 0.8589 7.153 858.9 5 0.46 3.567 Nil 093 01298 + 10 Max 0.50 1.9 0.05 D97 D4294 D445 D2709 Ash, wt % Carbon Residue on 10 % BTMS, wt % Cetane Index, Calculated Cloud Point, 0 F (0 C) Color Copper strip Corrosion, 3 hr @ 122 0 F (SO 0 C) Distillation, 0 F (0 C) Initial Boiling Point 1 0% Evaporated SO% Evaporated 90% Evaporated Final Boiling Point Residue, vol % Recovery, vol % Flash Point, 0 F (0 C) Gravity, API @ 60 0 F (15.6 0 C) Gravity, Specific @ 60 0 F Density, Iblgal @ 60 0 F (15.6 0 C) Density, kgtm3 @ 15.60 C Pour Point, 0 F (0 C) Sulfur, (wt %)Viscosity, cSt @ 104 0 F (40 0 C) Water And Sediment, vol % 1.) Based 00 ASTM D975-98b. Table 1, "StarKIard Speclllaatm for DieIeI Fuel C*". The EPA has exen1'ted the State of Alaska fnxn the kM sulfur n dye ~~ through 2004 (r8ference CFR V~ 64. 00.122). 2.) Typical product qu81y subjed to d1ange wMh., specified limits. ~~Approved by: ,,' "",'Qc..tRyC Current Revision: Jan, 2001 ~ . Previous Revision: April, 1999 (-12 Max -4.1 Max Max) CERTIFICATE OF QUALITY Tesoro Alaska Company 05731702DF2I TANK: I TK36PRODUCT: ASTM TEST MEmOD D1298 SPECIFIED LIMIT Report Report Report 2.0 Max +20 Max Report 125 Min 4.1 Max 0.5 % Max RESULTS 35.2 0.849 7.07 0.5 7.1 -7.0 169 3.1 0.1 D 156 D5773 D5949 D93 D445 D 4294 PROPERTY Gravity, API @ 60 deg F Gravity, Specific, 60 deg/60 deg F Density, lb/gal @ 60 deg F Color- ASTM Cloud Point, deg F Pour Point, deg F Flash Point, deg F Viscosity, cSt @ 104 deg F Sulfur, Total, Wt % Copper Strip Corrosion, 3 hrs @ 122 deg F Net, BTU/lb No.1 Max Report D130lA 18,421 52.8 4OMin D4737 D86 371 464 489 533 584 600 618 1.0 Report Report Report Report 640 Max Report Report Report Cetane Index, Calculated Distillation Temperature, deg F Initial Boiling Point 10% Recovered 20% Recovered 50% Recovered 90% Recovered 95% Recovered End Point Distillation Residue, Vol % L. Groleske Lab Supervisor PRODUCT CERTIFICATE OF QUALITY Tesoro Alaska ComDanv PRODUCT: I Jet A I TANK: I 35 I ANALYZED: I OS/28/02 ' ASTM TEST METHOD D4052 SPECIFIED LIMITRESULTS 43.7 0.8076 6.74 >30 -59.5 -81 -46.2 105 1.32 4.32 0.03 Report Report Report +12 Min D 156 D2500 D97 D5972 D56 -45.5 Max 100 Min 1.2 Min 8.0 Max 0.3% Max D445 D 4294 lA 18,568 0.25 No.1 Max 18400 Min 1.0 max D130 D5452 PROPERTY Gravity, API @ 60 des F Gravity, Specific, 60 deg/60 des F Density, lb/gal @ 60 des F Color, Saybolt Cloud Point, des F Pour Point, des F Freeze Point, des. C Flash Point, des F Viscosity, cSt @ 104 des F Viscosity, cSt @ -4 des F Sulfur, Total, Wt % Copper Strip Corrosion, 3 hrs @ 122 des F BTU/#, net Particulate Contaminant, fig/! D86 292 329 344 390 482 504 522 0.6 Report 401 Max Report Report Report Report 572 Max. Report Distillation Temperature. deg F Initial Boiling Point 10% Recovered 20% Recovered 50% Recovered 90% Recovered 95% Recovered End Point Distillation Residue. Vol % E. Bra;! Lab. Supervisor ""1'" ..::::: ~ rrhilSmS. ~~~,. Williams Alaska Petroleum Inc. Product Specifications: Turbine Fuel Oil Alternative Name: Product 61, HAGO SPECIFICATION 1,3 TYPICAL 2 n=49 PROPERTIES ASTM TEST METHOD D974 D482 D524 D 4737 D1500 D 130 D86 0.5 Max 0.01 Max 0.30 Max 45Min 5Max No.1 Max <0.002 0.12 50.6 <1.5 <1.5 479 540 562 625 691 >206 28.9 0.8823 7.348 40 141,444 45 0.78 7.373 Nil Report 480 Min (249 Mln) Report Report 3 725 Max (385 Max) 200 Min (93 Min) 25 -32 0.8654 - 0.8871 7.206 - 7.387 Report Report Report 1.0 Max 2.0 - 8.5 0.1 Max D93 D 2015 D97 D4809 D4809 D 4294 D445 D 2709 Acid Number, Totalmg KOH/g Ash, wt %5 Carbon Residue, on 10 % BTMS, wt %5 Cetane Index, Calculated Color Copper Strip Corrosion, 3 hr@ 122 F (50)C 5 Distillation, 0 F (0 C) Initial Boiling Point 5 % Eva!X)rated 1 0% Eva!X)rated 50% Eva!X)rated 90% Evaporated Flash Point, 0 F (0 C) Gravity, API @ 60 0 F (15.6 0 C) Gravity, Specific @ 60 0 F Density, Iblgal @ 60 0 F (15.60 C) Pour Point, 0 F (0 C) 4 Heat ing Value, BTU/gailon (gross)5 Heat ing Value, MJ/kg 5 Sulfur, (wt %)VISCOSity, cSt @ 104 0 F (40 * C) Water and sediment, vol % 6 1.) Based on GVEA specifications. 2.) Typical product quality subject to change within specified limits. 3.) The recommended specifications for transported fuels complying with ADEC Standards for fuel transport (ADEC 18 AAC 75) are 50 % distilled at 645 0 F at 50% and 95 0/0 distilled at 700 0 F. These Standards are pertinent to liabilities for transporters In the classification of persistant and non-persistant hydrocarbons. 4.) POlK Point Depressant Additives may be used to provide fluidity at colder temperatures. Pour Point Depressed Produds may not be compatable with 5.) Results based on sample composite. ~~ Su ~11tJ WI. ~ Pa_* Current Revision: Previous Revision: February. 2001 April. 1999 Approved by: Williams Alaska Petroleum Inc. Product Specifications: Gasoline Blendstock Alternative Names: Product 54, N+A Naphtha for Export ASTM TEST METHOD SPECIFICATION TYPICAL n=42 PROPERTIES 0156 0 2624 0 2624 086 20 Min Report Report 30 156 122 Min (25 Max) 212 Max (100 Max) 392 Max (200 Max) 399 Max (185 Max) 1.5 Max 96Min 152 175 267 311 1 98.0088 D 4294 ICP AA (HGA) D 1298 500 Max 100 Max 30 Max Report 0.70-0.78 54 <40 <9 62.4 0.73 D 5134 D 5134 D 5134 D 5134 D 5134 D 5191 Report Report 40Min 1 Max Report 12.5 Max 86.2 Max 42.4 3.4 45.8 0 1.12 3.4 Color, Saybolt Conductivity, CU @ 320 F (Oct-Mar) 1 Conductivity, CU @ 60 0 F (Apr-Sept) 1 Distillation, 0 F (0 C) Initial Boiling Point 5% Evaporated 90% Evaporated Final Boiling Point Distillation Residue, vol% Recovery, Volume % Elemental Composition Sulfur, ppm Arsenic, ppb Lead, ppbGravity, API @ 600 F (15.6 0 C) Gravity, Specific @ 60 0 F Hydrocarbon Types: Naphthalenes, vol % Aromatics, vol % N + A, vol % Olefins, vol % Benzene, vol % Reid Vapor Pres. @ 100 0 F, psi Kpa @ 37.8 0 C 1.) ~ ~ 450 (as required) Approved by: ~~ au Q\IaIity WIlli AI~ p_t Current Revision: Previoos Revision: September 5, 2000 April 23, 1999 , ~ ~ , 2~ Q (1')"." ! !j:! ~,A ciZ" {;..~ ~,.;.;J <.);: ..¥ .t .', ~;: ,.., a a.:.~ e, J:::" 'ti °" 1 '°: -I' ,. >-[ o~ O~:2: -22 " "' 9;.. ..~,~i..l8j. 'dJ:~:::j~.:'§;:§"""§"~:"::§:::"§: ::, : R Q:.o.'~' ~:~:~.Q;.Q P;Q' ~"P;' A ': .Q'Q:.o.: ;.Q"'~;R:R:i l. -"dJ~.'d~~~~j~' ~ ~ ~~"~:~~~ i~:~: 'dj~j~~!~i: ~ '~R'R;RA:a'RA:,q'8'~'~:~:R; :R:RR'8A;a:~:;Sl ..' \~~: II::~~~ if::~:~~:~:-.::~1~ l~: ~:.i6 ~~:~:~:I' : c~, : N «:.., t.;r..: ... : ~ ..., : : N'~: : ;C{..: : 1~i""", :~~,R,R,R:R;RRR:R"",,;:,: , :e;;S::5:5;5:5:~-5:i!i:a,::,; ,,: :~~ISi;_:Si~_'::" ~ , , ; j~.l~ ~: ~::":: ,§:c§:'§:§§:~~:§~§§;§; II 11111 II! I .l.s:il~ ~J~81~1:i1~~~11:i1 :: ~ ~;;; ~ : ~ ~i ~ ~I»: Q); W:I»; 5 W :u;~ ~ t,j: ::' c~J~~~" 7A;({); ~~~~ Xi~:~; ~':*;6"~;~: ~:Qi ~~ 2'~' ,,' :t6iO;ftJ,~c,r'N;\';i:~:~;~;N' +'c)~:~'A"Mm"v~"~! " "c:, c' c c, ~~,~,~: ~:'5' '5 ~ Q, ~~ ~ ~ ~ 0.; 0;. ~ ~ ,c "'~~~,~"'~,~:;,;: ,~,,~,~,,~:~~"'.,..'." ,,; : ~ ~,,~;:~; "")~:~:;"")~~" ~,:~,~" .1('< ~:.: <: ~:(t); (.t) 0'00' ~, ~ +;:~~'~'~' .:~t»~;'~;~'~:'~:~:*I'~d!~~;.qo:~"~ [ i> i~!!~~!.!1.!i~c-"., § ~ , "".;.; § ~ """;2,'d;~[.; ..$.!"IU "' 'fi' ~dlcc '~ '"C"\e ~.:i~: -~W! .:.;-,-""'. 0 "' ; ! ;:, ... .. 1. :.., - ~~, ~~ ~ : """ii ~jO : ~ , 'Z -e0... 0;, :s: i; r:i..., ~: -So ~' o~ ~:. ~; N: ~ xi w -: Goc' 0' I" ), ~:"" '-!: , '~', Q' '~ ;~ v 111"1 ~I;~ "~ " :~:~:I : :: ;:.:. ~ --:. ,:--" c c : 0: ,: , .. :J",t 1 8:-:00: i dill 1 ~~..l:I~.i.;~!ftc: :p" :1:.:: ':4: :m :,~ ..6' ~;"": ~A' ~ ~:.c: ~'2:; «: , - ~ '*' '0- ,;.:, , ~, ~:'.jgl;t~ -;'1): ~ ~.c 8.&'1 ~..-:;!I~-: ~:Q: ::' A ~ ., \J\,: ~: '0 :i;;~ ~ ~:g : ~ .t~:'--:-' l 0: - ~: "iij ~:Q:."!; 4: $' !i e[.. ,__a , ~ ~::!; Q:' .4., ,!,c8:, : -',.,...:Z:. ..: ,8:: W':,~ ,;~.:~:~:.. 11 }. ~ ~; "0;-: ~;I " " -" " , c, c"..," ~ ~ ~ ~ "'0,.: ~l ~; ,~ I: ~ -, .2l : t~ < .. ~:. . : III t"." ". ~ s ~ ~ VJ