Techno-Economic Assessment of Large-Scale Aero-Derivative Industrial Gas Turbines Combined-Heat-And-Power

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Author(s) Barinyima Nkoi | Pericles Pilidis | Theoklis Nikolaidis
Pages 225-240
Volume 5
Issue 4
Date April, 2015
Keywords Aero-Derivative-Gas-Turbines, Combined-Heat-And-Power, Techno-Economic Assessment, Intercooled-Recuperated-Cycle, Net-Present-Value, Simple-Payback-Period

Abstract

The aim of this paper is to assess and compare techno-economic viability of large-scale simple cycle (SC) and advanced cycles aero-derivative industrial gas turbines combined-heat-and-power (ADIGT-CHP) generation in the petrochemical industry in terms of net present value (NPV), internal rate of return (IRR), and simple-payback-period (SPBP). To achieve this, a techno-economic assessment method was applied using a case study of a large-scale Refinery CHP. Parameters of technical performance of the ADIGT-CHP such as fuel flow, power output, emissions, heat recovery, and steam flow, in conjunction with various cost elements were made inputs in an economic module utilising a 20 years life-cycle. Economic principles were applied to predict the NPV, IRR, and SPBP of the three ADIGT-CHP cycles over conventional case (Grid electricity plus on-site boiler). The advanced cycles considered are intercooled (IC) cycle and intercooled-recuperated (ICR) cycle. The result shows that all three ADIGT–CHP cycles exhibit positive NPV, good payback-period and internal-rate-of-return, which is an indication that all are viable, though the SC ADIGT–CHP was found to be more profitable than the others. The percentage savings in operational cost of SC, IC, and ICR cycle ADIGT–CHP over the conventional case were obtained as 21.1%, 20.5%, and 19.7% respectively. More so, SC ADIGT–CHP was found to exhibit higher CHP efficiency and steam flow than IC and ICR cycles. This sort of assessment would aid decision makers to make good choice of large-scale ADIGT-CHP cycle option in the petrochemical industry.

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