1) A power plant with an efficiency of 65% combusts 500,000metric tons (MT) of anthracite coal per year to generateelectricity. It has been established that this type of coal has thecapacity to generate electrical energy at 19 GJ/MT.
a) How much energy in GJ (giga joules) does this plant generatein one year?
b) Estimate the annual emissions of criteria pollutantsincluding SO2, NOx, PM and greenhouse gases including CO2 and COusing the appropriate emission factors given in the belowtable.
2) The Power Company has recommended a plant conversation toswitch to using natural gas as fuel to generate the same amount ofenergy. Your firm has been asked to review the economics andperform and sensitivity analysis for the proposed switch and make arecommendation to the regional Utility Board of Directions. If thenatural gas to be used has an energy capacity of 43MJ/m3 (mega joules per cubic meter of gas)
a) Estimate the volume of natural gas needed inm3/yr.
b) Calculate the annual emissions of criteria pollutantsincluding SO2, NOx, PM and greenhouse gases including CO2 and COusing the appropriate emissions factors given in the belowtable.
Pollutant | Anthracite coal | Bituminous coal | Fuel oil | Natural Gas |
CO2 (g/GJ) | 94,600 | 101,000 | 77,400 | 56,100 |
SO2 (g/GJ) | 765 | 1361 | 1350 | 0.68 |
NOx (g/GJ) | 292 | 183 | 195 | 93.3 |
CO (g/GJ) | 89.1 | 89.1 | 15.7 | 14.5 |
Particulate matter (g/GJ) | 1,203 | 3254 | 16 | 0.1 |
3) The NG plant conversion is estimated to cost $25 million.Given that the cost of Anthracite coal is $750/MT and natural gasis $15/m3 calculate the plant operating costs per yearand the annual fuel cost difference for switching to natural gas.Additionally, it has been determined that the cap and trade programfor SO2 reduction will provide a credit benefit for $150/MT-SO2reduced. Also, the plant is looking ahead and planning for theimplementation of a similar cap and trade program similar to theEuropean model for CO2 emissions. The expected credit benefit forCO2 emission reduction will be market based and can range from $100to $300/MT-CO2 reduced. Determine the NPV, payout and rate ofreturn for the plant conversion project incorporating the capitalan operating costs and emissions program credit for SO2 with a 4%interest rate. If the carbon cap and trade system is implemented,how does that change the economic outcomes?
Based on the emission estimates and costs and benefits, what isyour recommendation to the utility board?
