Boiler Optimization and MATS Work Practices Requirements. McIlvaine Hot Topics September 27 th, 2013

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Boiler Optimization and MATS Work Practices Requirements McIlvaine Hot Topics September 27 th, 2013

Mercury and Air Toxics Standard (MATS) Requires all plants to reduce mercury and increase efficiency to mitigate unmeasurable air toxics Requires an efficiency evaluation and tune-up every 3 years starting in 2015 Complies with a universal consent decree EPA, almost all generators, states and environmental groups are parties Generators are investing in mercury mitigation and efficiency Using a neural network relaxes timing of efficiency evaluation Neural combustion optimization is only technology that enables plants to defer the evaluation to 2016 and to every four years thereafter Substantial business driver for NeuCo NeuCo is seeing 2014 budgets established to include neural networks Will drive universal adoption of combustion optimization in US coal generation

Units with Neural Network Optimization Get Favorable Regulatory Treatment Neural network optimization is explicitly addressed by MATS in three ways Neural network optimization systems qualify for the requirement in the rule for "optimizing NOx and CO." Units with optimizers can defer the initial EPA "best practices requirement by a year. Units with optimizers also qualify for less frequent subsequent evaluations from every 3 years to every 4 years. These provisions provide further evidence that the US EPA recognizes the value of optimization with respect to regulatory objectives relating to emissions and efficiency

Benefits of Neural Network Optimization for MATS Work Practices Requirements Clearly demonstrate optimization of NOx and CO Defer initial boiler tune-up by one full year Learn how EPA enforces rule for those not employing neural optimization Better plan for initial tune-up and associated repairs Avoid or defer outage associated with tune-up Simplify emissions performance measurement protocol Single before vs. after average as opposed to hourly measurements Reduce sensitive data available to state and federal regulatory agencies Reduce subsequent tune-ups from every 3 to every 4 years Better meet emissions, efficiency, and availability objectives Provide upgrade path for integrated boiler optimization

Additional EPA Mandates and Enforcement Mechanisms Clean Air Act of 1970 and Clean Air Act Amendments of 1990 National Ambient Air Quality Standards, PM 2.5, Regional Haze CO 2 for plants triggering New Source Review And now CO 2 standards for existing power plants Enforcement Mechanisms New Source Review Internal administrative / judicial process Prescriptive standards (BART/BACT) Regional / market based approaches (CAIR, CSAPR)

CombustionOpt Provides real-time closed-loop optimization of fuel and air biases Using: Model Predictive Control (MPC) Neural Networks Design of Experiments (direct search) Expert Rules To Improve: NOx CO Heat rate Steam temps Opacity Reagent utilization Constraint performance (Mill Dp s, Fan Amps, O2 split)

Combining Neural with MPC

Typical CombustionOpt Benefits NOx reductions of 10-15% Boiler efficiency increase of 0.5-0.75% CO controlled to desired limit Better ramping and load-following performance Reduced opacity excursions Avoided tail-chasing behavior Better adherence to fan and mill amp limits Improved situational awareness and process insight

CombustionOpt at DTE Belle River B&W opposed wall-fired, balanced draft boiler built in 1984 Normal full load of 645 gross MW, Max load with over-fire of 685 gross MW (turbine limited) Designed for and burns 100% PRB (Decker, Spring Creek, Wyoming) Pulverized coal from 8 B&W MPS-89 pulverizers, 7 operate during normal operation 5 burners per mill, 40 total Originally 4 burner levels per wall, burners replaced with LNB and redistributed into 3 levels Top level of burners replaced with OFA ports (1/3 and 2/3 control dampers in each port) 6 single-point extractive type O2 probes at economizer exit

Unit 2 Performance Test Results Manual Tuning Neuco Tuning Baseline Heat Rate Test 07/27/10 Manual Tuning Heat Rate Test 07/28/10 Neuco Tuning Heat Rate Test 07/30/10 Manual Tuning Change (Absolute) Manual Tuning Change (Relative, %) Neuco Tuning Change (Absolute) Neuco Tuning Change (Relative, %) Gross Load, MW 647.954 647.948 645.058-0.006 0.00% -2.896-0.45% Net Load, MW 606.641 608.604 607.743 1.964 0.32% 1.102 0.18% Auxiliary Power, MW 41.313 39.343 37.315-1.970-4.77% -3.998-9.68% Raw Net Unit Heat Rate (Heatloss), BTU/kWhr 10517 10402 10331-115 -1.10% -186.0-1.77% Corrected Net Unit Heat Rate (Heatloss), BTU/kWhr 10393 10286 10224-108 -1.0% -169.184-1.63% Net Unit Heat Rate (Input/Output), BTU/kWhr 10493 10362 Not Avail. -131-1.25% Not Avail. Not Avail. Corrected Net Unit Heat Rate (Input/Output), BTU/kWhr 10458 10358 Not Avail. -100-0.96% Not Avail. Not Avail. NOx, lb/mbtu 0.2513 0.2025 0.2010-0.0488-19.43% -0.050-20.02% CO, PPM 88 78 157-10 -11.18% 68.200 77.18% CO2 Intensity, Tons CO2/MWhr 1.069 1.047 1.043-0.02-2.06% -0.03-2.43% Total Boiler Air Flow, klb/hr 6313 5926 5483-387 -6.13% -830-13.14% Average Excess O2, % 4.39% 3.23% 2.45% -1.15% -26.31% -0.019-44.18% Excess Air, % 30.50% 20.75% 15.12% 9.75% -31.97% -15.38% -50.43%

Comprehensive Boiler Optimization Interrelated boiler variables must be continually managed Combustion quality, fuel & air mixing, gas & steam temps, fouling, tube erosion, & emissions Fluctuating constraints & changing objectives add complexity Independently optimizing combustion & sootblowing delivers value, but leaves benefits on the table

NOx Model with CombustionOpt & SootOpt MVs as Inputs NOx Model with only CombustionOpt MVs as Inputs 13

SootOpt Provides real-time closed-loop optimization of soot cleaning equipment Using: Expert Rules Neural Networks To Improve: Sootblowing consistency Unnecessary sootblowing Steam temps Sprays Leverage on heat rate

Typical SootOpt Benefits Reduced and more tightly controlled APH inlet temps Improved SH and RH steam temperature control Reduced attemperation sprays Heat rate reduction of 0.75-1.00% Incremental NOx reduction of 2.5-5% Avoided opacity excursions Reduced blowing of 10-35% Avoided thermal stress from blowing clean surfaces Fewer tube-leak failures Improved situation awareness and process insight

Blower Count Trends Proprietary and Confidential

A vs. B RH Temps: Off A vs. B RH Temps: On Proprietary and Confidential

Frequency Frequency Frequency Frequency 1030 249 20 91.97 1035 57 7 87.72 1040 20 3 85.00 RH Temps & Sprays Reheat Spray Flow Frequency Distribution and Percentage Change RH Spray Flows Before SootOpt After SootOpt 1045 6 0 100.00 (klbs/hr) Frequency Frequency % SootOpt Change Before vs. After 1050 30 304 1 3740-23.030 More 35 113 1 2540-124.780 40 72 396-450.00 45 129 350-171.32 4000 50 158 359-127.22 Notes RH Temperature Before SootOpt RH Temperature After SootOpt 55 292 258 11.64 4000 Positive % Change = decrease in occurrence frequency 3500 60 200 135 32.50 Negative % Change = increase in occurrence frequency 65 116 302 Frequency 3500-160.34 Frequency 3000 70 156 277-77.56 3000 2500 75 238 501-110.50 2500 2000 80 132 474-259.09 2000 1500 85 128 318-148.44 1500 90 238 690-189.92 1000 1000 95 1646 1237 24.85 500 100 6006 1869 68.88 500 0 105 122 2010-1547.54 0 110 0 246 N/A 950 960 970 980 990 1000 1010 1020 1030 1040 1050 More 0 0 N/A 950 960 970 980 990 1000 1010 1020 1030 1040 1050 6000 5000 Frequency RH Spray Flow Before SootOpt 6000 5000 Frequency RH Spray Flow After SootOpt 4000 4000 3000 3000 2000 2000 1000 1000 0 30 40 50 60 70 80 90 100 110 0 30 40 50 60 70 80 90 100 110 Proprietary and Confidential

Typical Gas Inlet Temps SootOpt Off vs. On Proprietary and Confidential

BoilerOpt Availability Mechanisms Reduced Boiler Tube Leak Outages Less unnecessary cleaning (SootOpt) Avoided thermal stress (SootOpt & CombustionOpt) Avoided Slagging/Fouling De-Rates & Outages Pro-active cleaning for vulnerable surfaces (SootOpt) Improved stoichiometry control (CombustionOpt) Tighter control of gas path temperatures (SootOpt & CombustionOpt) Reduced ammonium bi-sulfate air heater pluggage (SootOpt & CombustionOpt) Improved Situational Awareness Overtaxed mills and fans (CombustionOpt) Malfunctioning sootblowers (SootOpt) Insufficient media (SootOpt)

BoilerOpt Efficiency Mechanisms Boiler Efficiency Reduced O2 (CombustionOpt) More balanced fuel and air distribution (CombustionOpt) Improved heat transfer (SootOpt) Better gas temperature control (SootOpt) APH gas inlet temps Economizer inlet and exit temps Furnace exit gas temperature (FEGT) Additional Heat Rate Components Better superheat steam temperature control (SootOpt) Better reheat steam temperature control (SootOpt) Reduced attemperation sprays (SootOpt)

NOx BoilerOpt Emissions Mechanisms More balanced fuel-air distribution (CombustionOpt) Reduced overall O2 (CombustionOpt) More balanced temperature profile (SootOpt) CO Explicitly controlling to desired limit (CombustionOpt) Fewer pockets of oxygen-deficient combustion (CombustionOpt) Opacity Proactive cleaning to avoid ash accumulation (SootOpt) Not cleaning specified zones when opacity trending high (SootOpt) More balanced fuel-air distribution (CombustionOpt) Preemptively increasing O 2 to manage excursions (CombustionOpt) CO 2 Improved boiler efficiency (CombustionOpt) Tighter steam and gas temperature control (SootOpt) Reduced unnecessary attemperation sprays (CombustionOpt and SootOpt)

Questions? Peter Spinney spinney@neuco.net