Antonio Guiteras

BIG/GTCC POWER PLANT

PROJECT OWNER:
Antonio Guiteras Sugar Mill
Ministerio del Azúcar (Minaz) – Cuba
Content
„ Background
„ The BIG-GT technology
„ The Antonio Guiteras project
„ The project site
„ The project
„ Legal and financial structure
„ Financing of the Power Plant
„ Operation and maintenance
„ Financial and economical analysis
„ Cost reduction for future plants
„ Environmental impacts
„ Socio-economic impacts
Background
„ Cuba depends on oil for 75% of its electricity generation
… Local and global pollution, dependence on oil import
„ Large Cuban sugar sector
… Large amount of bagasse and sugar cane trash available for
energy generation
„ BIG-GT Technology
… Significantly more efficient and advanced technology for
turning biomass into energy than what is being used in Cuba
today
„ The feasibility study
… A feasibility study has been made to explore the technical and
economical conditions of implementing a demonstration using
the BIG-GT technology
The BIG-GT Technology
„ Precise technical denomination:
Biomass Integrated-Gasifier/Gas Turbine
Combined Cycle
„ Enables significantly higher electricity production
than conventional steam boiler and steam
turbine technology
„ Technology ready to be proven under
commercial conditions after several years of
research and development by various
companies
The BIG-GT Technology
BAGASSE
&
TRASH
From sugar mill

FUEL PREPARATION BALE STORAGE

& &
BALING RECLAIM

HOT FLUE GAS TO DRYER

GASIFIER GAS COOLING GAS SCRUBBING GAS COMPRESSOR HRSG

DRYER & & & & &
TAR CRACKER FILTERING CONDENSING GASTURBINE STEAM TURBINE

DRYER ASH FLYASH CONDENSATE

EXHAUST to mill POWER LP STEAM POWER
GAS wastewater to mill
to stack
system
The project
„Process flow diagram with main equipment
 The project site
„ Located at the Antonio Guiteras sugar mill in the
municipality of Puerto Padre in the north of the
province of Las Tunas on the eastern side of the
island
The project site
„ Characteristics of Antonio Guiteras sugar mill:

… Constructed between 1970 and 1973

… One of the largest sugar-producing mills in Cuba
… Capacity of 11 500 tonnes of cane per day
… In operation during milling season of 120 days
… Steam consumption requirement of 380kg/tonne of cane processed
… Two mill trains of 6 four roller mills
… The sugar mill turbines steam turbines are back pressure turbines
… Existing bagasse boilers will be operated in parallel with the BIG-GT
system during season, and provide part of the steam needs
… The sugar mill will provide fuel to the BIG-GT plant in form of mixture of
bagasse and trash – directly from the operation of the mill in season,
and from stored material during the off-season
The project
„ Capacity - 17MW
„ Annual generation – 110 GWh electricity
and 51 GWh steam
„ Fuelled with surplus bagasse from the
Antonio Guiteras sugar mill
„ Estimated investment cost: USD 48,9
mill.
The project
„Investment cost Item USD ‘000
Fuel, ash handling 5 699
Gasification, tar cracking 4 871

Gas cooling, cleaning 2 678

Power Plant
Gas turbine 8 000
Steam cycle 4 381
Compressor 2 260
Auxiliaries @ 19% 5 262
Civils @ 6% 1 937
EPC contractor @ 6% 3 050
Start-up @ 3% of investment 1 805
Temp facilities, permitting @ 2% 744
Project development @ 5% 4 019
Contingency @ 10% 4 290.1
Total 48 996.1
Operation and maintenance
„ The operation and the maintenance of the demonstrative plant will
be hired by the JV from the Sugar Company Antonio Guiteras that in
turn will subcontract technical support likewise for the first years of
operation
„ For the capital and specialized maintenance of the facilities it will be
subcontracted to national specialized companies.
„ In the case of gas turbine service will be included in the supply
contract.
„ The management of the demonstration plant will be carried out by
the Council of Direction that will be constituted by members named
by the Council of Shareholder
„ The total energy exported to the Grid will be sale to Electric National
Union (UNE), according to the Power Purchase Agreement (PPA)
that must be arranged between the SPC and UNE
Environmental impacts
„ CO2-reduction
… 110 000 tons/year, included in financial
analysis
„ Local environmental benefits:
… Particulates
96% lower
… SO2 96% lower
… NOx 92% lower
Technological and economic
impacts
„ Fewer power outages
… currently 120 h/year
„ Gaining knowledge of technology
… Next generation of plants will gain
„ Less need for imported oil
… 3,300 tons heavy oil/year, 740,000 $/year
„ Local employment and expertise
… 122 man-years during construction incl. multiplier
effect
… 67 man-years annually incl. multiplier effect
Cost-benefit analysis of
environmental impacts
„ Reduction in SO2 @ 331 $/ton USD 1.216.000,-
„ NOx emissions @ 206 $/ton, USD 60.000,-
„ Particulate matter @ 336 $/ton USD 6.000,-
… Excluding burning of residues in field
„ Reduction in power outages USD 300.000,-
… 30 ¢/kwh

„ Project gives a 7% real rate of return including

environmental cost savings
„ That is, grant no bigger than value of
environmental impacts
Cost benefit analysis of
technological contribution
„ Nth plant investment cost 51% of first plant
„ O&M cost falls 20%
„ With Cuban el price, bagasse price, tax
etc, the nth plant generates 20% real rate
of return
„ Part of this return attributed to the first
plant
Investment cost reductions
120 3

100 2,5

Relative plant size

Relative cost

80 2

60 1,5

40 1

20 0,5

0 0
1st Nth Nth 1st Nth Nth 1st , Nth Nth
high low high low high high, low,
eff. high high
eff. eff.
Plant number
Conclusions
„ Antonio Guiteras is a highly efficient but expensive plant.
„ At a power price of 5.2 ¢/kWh it needs 38% grant ($18.5
million) to give 8% real rate of return
… Or power price of 7.5 ¢/kWh
… Or higher steam price, currently at 1.3 ¢/kg
„ Including value of environmental benefits and power loss
gives 7% real rate of return
„ Plus it contributes to the nth of a kind plant having 20%
real rate of return
„ Plus net value of imported oil savings (gross value
740,000 $/year in Nov 2004)
„ The plant has higher benefits than costs, what are
the barriers?