DNREC Presentation 3/ 9/ 06 Items to Discuss About Dover Correct - - PDF document

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DNREC Presentation 3/ 9/ 06 Items to Discuss About Dover Correct - - PDF document

Jun 01, 2023 169 likes •571 views

City of Dover McKee Run Unit 3 DNREC Presentation 3/ 9/ 06 Items to Discuss About Dover Correct a Couple Issues Look at Technology Look at the Impacts About Dover Dover owns two sites McKee Run and VanSant City Owns-Duke

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SLIDE 1

DNREC Presentation

City of Dover McKee Run Unit 3 3/ 9/ 06

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SLIDE 2

Items to Discuss

About Dover Correct a Couple Issues Look at Technology Look at the Impacts

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SLIDE 3

About Dover

Dover owns two sites McKee Run and

VanSant

City Owns-Duke Energy Operates. McKee Run has Units 1/ 2, 3 McKee Run 3

Newest and most efficient unit Caps price for Dover customers Capacity factor of less than 8% (2005) Critical for Restoration of Dover and DAFB

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SLIDE 4

About Dover

McKee Run 3

Residual oil (No 6) Natural gas 75% of production

costs are Fuel

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SLIDE 5

About Dover

McKee Run 3

Residual oil (No 6) Natural gas 75% of production

costs are Fuel

World Spot Crude Oil Price per Barrel

$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 Jan-99 Apr-99 Jul-99 Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06

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About Dover

McKee Run 3

Residual oil (No 6) Natural gas 75% of production

costs are Fuel

Commercial Natural Gas prices (dollars per 1000 cu ft)

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 J a n

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SLIDE 7

Correct a Couple Issues

Regulated?

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SLIDE 8

Correct a Couple Issues

Regulated? Emission Rates

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In the January DNREC Presentation

Unit (year built) Age Fuel NOx Controls - Current Emission Rate SOx Controls - Current Emission Rate Mercury Controls - Current Emission Rate Indian River 1 (1957) 48 Coal First generation low NOx burners &

  • verfire air -

0.38 lb/mmbtu Uncontrolled - 2.2 lb/mmbtu Uncontrolled Indian River 2 (1959) 46 Coal First generation low NOx burners &

  • verfire air -

0.33 lb/mmbtu Uncontrolled - 2.1 lb/mmbtu Uncontrolled Indian River 3 (1970) 35 Coal First generation low NOx burners,

  • verfire air & selective non-catalytic

reduction - 0.28 lb/mmbtu Uncontrolled - 2.2 lb/mmbtu Uncontrolled Indian River 4 (1980) 25 Coal First generation low NOx burners,

  • verfire air & selective non-catalytic

reduction - 0.30 lb/mmbtu Uncontrolled - 1.0 lb/mmbtu Uncontrolled EdgeMoor 3 (1954) 51 Coal Selective non-catalystic reduction - 0.17 lb/mmbtu Uncontrolled - 1.01 lb/mmbtu Uncontrolled EdgeMoor 4 (1966) 39 Coal First generation low NOx burners & gas reburn - 0.18 lb/mmbtu Uncontrolled - 1.04 lb/mmbtu Uncontrolled EdgeMoor 5 (1973) 32 Residual Oil First generation low NOx burners - 0.35 lb/mmbtu Uncontrolled - 0.60 lb/mmbtu NA McKee Run 3 (1975) 30 Residual Oil First generation low NOx burners &

  • verfire air -

0.35 lb/mmbtu Uncontrolled - 0.73 lb/mmbtu NA

Reported to be 2002 data

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Dover Corrected Emission Rates

Unit (year built) Age Fuel NOx Controls - Current Emission Rate SOx Controls - Current Emission Rate Mercury Controls - Current Emission Rate Indian River 1 (1957) 48 Coal First generation low NOx burners &

  • verfire air -

0.38 lb/mmbtu Uncontrolled - 2.2 lb/mmbtu Uncontrolled Indian River 2 (1959) 46 Coal First generation low NOx burners &

  • verfire air -

0.33 lb/mmbtu Uncontrolled - 2.1 lb/mmbtu Uncontrolled Indian River 3 (1970) 35 Coal First generation low NOx burners,

  • verfire air & selective non-catalytic

reduction - 0.28 lb/mmbtu Uncontrolled - 2.2 lb/mmbtu Uncontrolled Indian River 4 (1980) 25 Coal First generation low NOx burners,

  • verfire air & selective non-catalytic

reduction - 0.30 lb/mmbtu Uncontrolled - 1.0 lb/mmbtu Uncontrolled EdgeMoor 3 (1954) 51 Coal Selective non-catalystic reduction - 0.17 lb/mmbtu Uncontrolled - 1.01 lb/mmbtu Uncontrolled EdgeMoor 4 (1966) 39 Coal First generation low NOx burners & gas reburn - 0.18 lb/mmbtu Uncontrolled - 1.04 lb/mmbtu Uncontrolled EdgeMoor 5 (1973) 32 Residual Oil First generation low NOx burners - 0.35 lb/mmbtu Uncontrolled - 0.60 lb/mmbtu NA McKee Run 3 (1975) 30 Residual Oil First generation low NOx burners &

  • verfire air -

0.28 lb/mmbtu Uncontrolled - 0.73 lb/mmbtu NA

2004 actuals posted on web by DNREC

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2003 Overfire Air NOx Project

City of Dover financed $2M in a NOx

reduction project to comply with CAA reduction.

Reduced emission rate from 0.35 to

0.28 average (0.23 lowest)

20 - 35% reduction

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SLIDE 12

2003 Overfire Air NOx Project

City of Dover financed $2M in a NOx

reduction project to comply with CAA reduction.

Reduced emission rate from 0.35 to

0.28 average (0.23 lowest)

20 - 35% reduction

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2003 Overfire Air NOx Project

City of Dover financed $2M in a NOx

reduction project to comply with CAA reduction.

Reduced emission rate from 0.35 to

0.28 average (0.23 lowest)

20 - 35% reduction

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2003 Overfire Air NOx Project

City of Dover financed $2M in a NOx

reduction project to comply with CAA reduction.

Reduced emission rate from 0.35 to

0.28 average (0.23 lowest)

20 - 35% reduction

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Correct a Couple Issues

Regulated? Emission Rates Coal and Oil

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From Air Quality Summit June 4, 2003

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Actual Emissions

SO2 Emissions from M ulti-P Targeted Units

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2002 2003 2004 2005

Data from EPA Website

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Actual Emissions

NOX Emissions from M ulti-P Targeted Units

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2002 2003 2004 2005

Data from EPA Website

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Actual Emissions

M ercury Emissions from M ulti-P Targeted Facilities

0.0 50.0 100.0 150.0 200.0 250.0 2002 2003 2004

Data DE TRI Reports.

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Actual Emissions – 2003 TRI Report

2003 is most recent report Data taken from State Website

http: / / www2.state.de.us/ serc/ information/ TRI/ 2003/ TRI_Data_Detail_Report.shtml

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SLIDE 21

Actual Emissions – 2003 TRI Report

2003 is most recent report Data taken from State Website

http: / / www2.state.de.us/ serc/ information/ TRI/ 2003/ TRI_Data_Detail_Report.shtml

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SLIDE 22

Actual Emissions – TRI Report

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Actual Emissions – TRI Report

Includes all three McKee Units

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Items of Interest

About Dover Correct a couple issues Look at Technology Look at the Impacts

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In the January DNREC presentation

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In the January DNREC presentation

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In the January DNREC presentation

N/ A

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For Dover it’s NOx and SOx

NOx

Overfire air – done $2M SCR SNCR

SO2

Lower sulfur fuel

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Items of Interest

About Dover Correct a couple issues Look at Technology Look at the Impacts

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For Dover it’s NOx and SOx

NOx

SCR

No oil units w/ SCR in service Metals poisoning of catalyst Brings ammonia on-site Estimated capital cost > $10M

SNCR

Brings ammonia on-site Estimated capital cost $4M

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For Dover it’s NOx and SOx

NOx – SCR - $10M capital

Assume similar run history Assume O&M costs $300K (catalyst and NH3) 28% premium over current costs.

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For Dover it’s NOx and SOx

NOx – SNCR - $4M capital

Assume similar run history Assume O&M costs $ 150K (NH3) 12% premium over current costs.

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For Dover it’s NOx and SOx

SO2

Lower Sulfur fuel

Used 3% oil until 1992 Currently use 1% sulfur Lower sulfur available at 10% premium Fuel is 75% of our production costs 7.5% premium over current costs

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SLIDE 34

For Dover it’s NOx and SOx

Total cost estimates

NOx –>

12% – 28%

SOx ->

8%

20% - 36% for this regulation

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Items of Interest

About Dover Correct a couple issues Look at Technology Look at the Impacts

Multi-pollutant – (20% - 36% ) CO2 – (?) Combustion Turbine (?) Regional Haze Reg - Particulate (?) Other ?

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Dover Summary

Switched from Coal to Oil in 1970’s Switched from 3% to 1% in 1990’s Installed NOx OFA NOx Reduction in 2003 Faced with 100% fuel cost increase Faced with compounded Environmental Regulations Probably forced to shut down

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Dover’s Electric Strategy

Wholesale Power Purchaser Plant Caps our costs Not Base loaded – Seasonal – less than 2000 hrs. DAFB and State Government are two largest customers Fuel cost increases provide current sticker shock

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Dover’s Electric Strategy

Black start capability McKee Run is critical link Dover service territory

(Local, State, regional medical, DAFB)

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Any Questions?