Cleantechnology and Sustainable Industries Summit
Roy M. Palk, President
New Horizons Consulting
2221 Broadhead Place
Lexington, KY 40515
859-771-1900
Traditional Power
Generation Panel
Considerations for
Choosing Circulating Fluidized Bed Technology
Choosing a generating technology in today’s energy world is,
more and more, becoming a strategic decision rather than just an economic choice.
Present and future power supply decisions will include several factors beyond
just connecting a power plant to a load with a transmission line. Some of those
selection factors are; 1. operating reliability, 2.environmental impacts and
permitting, 3.construction economics and size-of-unit risks, 4.rate impact, 5.fuel
diversity and, 6.project financing. East Kentucky Power Cooperative (EKPC) chose
circulating fluidized bed (CFB) technology for its’ expansion program because
that technology performed well in all categories.
The following points will further explain EKPC’s thought
process for making the selection. Allow me to preface any points by saying the
utilities in Kentucky are stringently regulated by the public service
commission and the attorney general’s office under its’ consumer protection
authority and all of these criteria were parts of their review and approval process.
- Operating
reliability: EKPC personnel visited three locations where CFB plants were
in already in operation prior to choosing the technology. They were
operating at around a 90% availability factor.
- Environmental
impacts and permitting: Actual emissions data are on target with original
specifications. And the direct injection of lime into the boiler is an
excellent “front-end” method of controlling NOx.
- Construction
economics and size-of-unit risks: The per kw installed cost are very competitive
in the marketplace when compared to other units within the EKPC control
area. Thus the dispatch costs are rate friendly, $18.00/mwh. The 268-278
mw size fits well with EKPC’s other units’ sizes and balances supply
capacity with not over building.
- Rate
impact: Because of the factors described in number 3 above the wholesale power
costs from the CFB units substantially lower EKPC’s average costs when
blended with the other units.
- Fuel
diversity: The CFB boilers will burn different coal types, even high sulfur
coal at a cheaper price. Too, if permitted, the units will also burn other
carbon-based fuels mixed with the coal.
- Project
financing: The advantages in items 1-6 above have allowed for permitting
ease and, thus, a revenue stream. Financing follows accordingly.
In conclusion, the CFB technology choice
has proven to be a good one for all the above reasons and more for which time
will not allow discussions. Unless EKPC’s future plans change, there will be
two more CFB units constructed in the next few years.
← Back to Roy M. Palk biography
← Back to Speakers
↑ Back to Program
