Mike Barrett. March 24, 2004
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1 Mike Barrett March 24, 2004
2 Discaimer This presentation is being suppied to you soey for your information and may not be reproduced, further distributed to any other person (whether within or outside your organisation) or pubished, in whoe or in part, for any purpose. This presentation is not an offer to se or the soicitation of an offer to buy nor sha there be any sae of securities in any jurisdiction, incuding the United States, in which such offer, soicitation or sae woud be unawfu prior to registration or quaification under the securities aws of such jurisdiction. Securities may not be offered or sod in the United States absent registration or an exemption from registrations. Nothing contained in this document shoud be construed as a definitive statement regarding the Company s financia condition or resuts of operations at or for the fisca year ending on March 31, 2004 and the subsequent financia years. 2
3 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 3
4 The GT24/GT26 Story A GT26 in combined cyce, produces enough power (400 MW) to provide energy for 500,000 peope. The turbine inet temperature is 1280 C, cose to the meting point of the bades which require advanced cooing methods. The 120 ton shaft, with a diameter of more than 3 metres, rotates 50 times per second. Some facts about GT24/26 4
5 The GT24/GT26 Story Gas Turbine Generator Steam Turbine HRSG GT G Cutch ST Condenser GT24 Gas Turbine 5 A typica Singe-Shaft Arrangement in Combined-Cyce Power Pant
6 The GT24/GT26 Story Output LPT Row 2 Modification (cooing air and Temp reduction) Upgrade without temp increase Front runners Temperature reduced further Ongoing feet upgrades Feet 2000 Interim Operation Concept 2001 Stabiization 2002 Upgrade Performance Test 2003 Fied upgrades 2004 Ongoing feet impementation Not to scae Recovery profie 6
7 The GT24/GT26 Story 73 units in operation Commercia negotiation : March 03 Feb 04 Settements agreed or not needed In negotiation In itigation 7 0 Tota engines Update on commercia operation 7
8 The GT24/GT26 Story 73 Units in commercia operation 2 Units in commissioning (Miford, Senoko II) 1 Units in construction (Senoko II) 4 Units in suspension (Staythorpe) 80 Units Tota GT24/GT26 Feet Commercia Status 8
9 The GT24/GT26 Story (1) The GT24/GT26 gas turbine feet has now accumuated over operating hours Performance & Lifetime improvements depoyed with positive resuts 73 machines in operation with word cass reiabiity and avaiabiity and best-in-cass emissions eves Commercia impications quantified & mitigation pans in pace The engines are suppying enough eectricity to meet the needs of 20 miion peope in 17 countries word-wide. Where are we today? 9
10 The GT24/GT26 Story (2) Cartagena CCPP in Spain (¼680 miion) Gas Natura, an existing GT26 customer Turnkey combined-cyce power pant (1,200 MW) incuding three GT26 gas turbines and associated O&M contract We are regaining Customer Confidence 10
11 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 11
12 What is the experience with the mature feet? 73 units in commercia operation á + 3 units in hot commissioning (2x Miford, 1x Senoko II) á + 1 GT26 Gas Turbine Test Centre Feet Experience á Simpe Cyce, Combined Cyce and Repowering á Singe Shaft and Muti Shaft á From Daiy starts and stops to base oad operating pants á Natura gas (aso with high C2+), oi with onine fue switch-over á Power Augmentation (Inet cooing) Over operating hours (eader >43 000), > starts, 98+% GT reiabiity 12
13 What is the experience with the mature feet? Accumuating Experience with the GT24/GT26 feet: Cumuative Feet Operating Hours OH Operating Hours GT24/GT26 Feet accumuating at around Operating Hours per month OH OH OH st GT26B 0 Sep-95 Mrz-96 Sep-96 Mrz-97 Sep-97 Mrz-98 Sep-98 Mrz-99 Sep-99 Mrz-00 Sep-00 Mrz-01 Sep-01 Mrz-02 Sep-02 Mrz-03 Sep-03 Mrz-04 Approaching 1 Miion Operating Hours 13
14 What is the experience with the mature feet? GILBERT BURGIN AGAWAM MIDLOTHIAN ISLAND COGEN LAKE ROAD MILFORD BLACKSTONE BAYSIDE HAYS MIDLOTHIAN II BELLINGHAM LA PALOMA 1xGT24 2xGT24 1xKA24-1 4xKA24-1 1xKA24-1 3xKA24-1 2xKA24-1 2xKA24-1 1xKA24-1 4xKA24-1 2xKA24-1 2xKA24-1 4xKA24-1 BESOS 2xKA26-1 SAN ROQUE 2xKA26-1 CASTEJON 1xKA26-1 RINGSEND 1 xka26-1 TERMOBAHIA 1xKA24-1 ROCKSAVAGE ENFIELD SHOREHAM CORYTON STAYTHORPE RDK4 1 xka26 Gas Turbine Test Centre, 1xGT26 1xKA26-2 1xKA26-1 1xKA26-1 1xKA26-2 4xKA26-1 PORYONG CHIBA MILL, 1xKA26-1 HAI FU, 2xKA xka24-2 MONTERREY MONTERREY III ROSARITO HERMOSILLO 2xKA24-1 4xKA24-1 2xKA24-1 1xKA24-1 BOWIN 2xKA26-1 BANG BO 1xKA26-1 SWANBANK 1xKA26-1 TOCOPILLA 1xKA26-1 DOCK SUD 1xKA26-2 SENOKO SENOKO II 1xKA26 2xKA26 TARANAKI 1 xka26-1 Orders of 51 GT24, 29 GT26 and 1 GT26 in the test centre 14
15 What is the experience with the mature feet? How do they operate? San Roque 1 Besos 4 Besos 3 San Roque 2 Castejon 1 Source: Boetín Estadístico de Energía Eéctrica - October 2003, No. 65 Five GT26B gas turbines have the highest number of operating hours in Spain! Leading Performance 15
16 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 16
17 What advantages are aready demonstrated in the fied? SEV Combustor EV Combustor EV SEV = EnVironmenta = Sequentia EnVironmenta Compressor High Pressure Turbine Low Pressure Turbine Main Components of GT24/GT26 Architecture 17
18 What advantages are aready demonstrated in the fied? Quick start-up times (45 minutes to fu oad) Part oad operation down to 40% oad with high efficiency Sequentia combustion gives unique advantages á Low emissions <25 vppm and ow pusations á Constant exhaust temperature for optima Combined Cyce ayout How do they operate? 18
19 What advantages are aready demonstrated in the fied? SEV Burner Advantages á High Power Density (Output / kg inet air), sma frame, sma parts á Low Emissions on fue gas and on fue oi á High part oad efficiency á Two degrees of freedom giving more combustion stabiity Why Sequentia Combustion? 19
20 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 20
21 What improvements are avaiabe today? Fu Engine Vaidation A Simpe Cyce Power Station Deivers more than 280 MW of power to the Swiss grid Incudes dua fue and nonstandard gas capabiities More than 2000 additiona measuring points Is used for the state-of-the-art testing which incudes á functionaity testing á protection test á rainbow tests á therma paint tests á compressor surge GT26 Engine Test Faciity at Birr 21
22 What improvements are avaiabe today? Benefits & Impact Open books in sharing gas turbine technoogies of both parties incuding but not imited to: á design reports á guideines, processes, á toos, á test resuts Ros Royce engines operate using: á high temperature technoogies á advance aerodynamics á high strength/high temperature materias Hotter regions Cooer regions Ros-Royce Cooperation 22
23 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 23
24 What our customers say today? CCPP TARANAKI "The Taranaki Pant has reached the goa of being the most reiabe ow cost, base oad therma generator in NZ; a direct resut of the commitment and the wiingness of the ALSTOM Staff to contribute and to "go the extra mie." Barrie Amond - Pant Manager Taranaki Combined Cyce, 16 September 2003 CCPP TARANAKI á á á 360 MW Power Pant in New Zeaand Owned by Contact Energy Ltd. KA26-1 Singe Shaft Power Train with 1 x GT26AB á Commercia operation since Juy 1998 Satisfied Customers 24
25 What our customers say today? CCPP Castejon "The Castejon pant is running at 99% and is totay reiabe. If you ask me if there is anything to compain about, the answer is no. Managing Director, Hydrocantabrico, 20 October 2003 CCPP Castejon á á á á 400 MW Power Pant in Spain owned by HYDROCANTABRICO KA26-1 Singe Shaft with 1 x GT26B Commercia operation since September 2002 Satisfied Customers 25
26 What our customers say today? CCPP Rocksavage "Dramatic improvement in how ALSTOM performs in the management of its very difficut technica and commercia issues. The organization has regained our confidence." Chuck Davis, Managing Director Intergen UK, 5 November 2003 CCPP Rocksavage á 770 MW Power Pant in United Kingdom á owned by INTERGEN á KA26-2 Muti-Shaft with 2 x GT26AB á Commercia operation since Juy 1998 Satisfied Customers 26
27 Agenda The GT24/GT26 Story What is the experience with the mature feet? What advantages are aready demonstrated in the fied? What improvements are avaiabe today? What do our customers say today? Summary 27
28 Summary GT24/GT26 Concuding... Tota of over 850,000 operating hours experience Advantages of the GT24/GT26 seen in the fied á Exceent part oad efficiency down to 40% GT oad á Very ow emissions á Very ow combined cyce start-up times Rigorous Vaidation ed to engine achieving >98% reiabiity Performance of GT24B and GT26B with upgraded compressor confirmed in the fied with customer acceptance Continuous improvement program with partner Ros-Royce Satisfied Customers Seing again a competitive product We are back! 28
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