BOARD MEETING DATE: July 10, 1998 AGENDA NO. 7




PROPOSAL:

Execute Contract to Cost-share Second Year of Development and Demonstration of an Advanced Premixer/Catalytic Combustor for Natural Gas Combustion Turbines

SYNOPSIS:

On February 14, 1997, the Governing Board approved cost-sharing the first year of a two-year project to develop and demonstrate an advanced, ultra-low NOx catalytic combustion system for natural gas-fired combustion turbines. The project, led by Clemson University Research Foundation's South Carolina Energy Research and Development Center, in conjunction with UC Irvine, Solar Turbines, Inc. and Catalytica Inc., has successfully achieved its first year goals. The objective of this proposal is to complete the second year of this $1,443,000 project. The AQMD contribution for the second year is $269,000, for a total project contribution of $534,000.

COMMITTEE:

Technology, June 26, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Clemson University Research Foundation's South Carolina Energy Research and Development Center to cost-share the second-year development and demonstration of an advanced premixer/catalytic combustor for natural gas combustion turbines in an amount not to exceed $269,000.

Barry R. Wallerstein, D.Env.
Acting Executive Officer


Background

On February 14, 1997, the Governing Board approved cost-sharing the first year of a two-year project to develop and demonstrate an advanced, ultra-low NOx catalytic combustion system for natural gas-fired combustion turbines for an amount not to exceed $265,000. Combustion, or gas, turbines are expected to play an increasing role in supplying electricity demands in California's deregulated energy marketplace. Catalytic combustion is being developed as the combustion system of choice for future advanced gas turbines due to their potential for inherently low emissions, packaging flexibility, and overall performance characteristics.

To optimize the performance of catalytic combustors and minimize NOx formation, a premixer is needed to facilitate mixing between the natural gas and air prior to entering the combustor. This project is developing a new and innovative low pressure drop premixer capable of delivering the highly mixed reactants to the combustor. This premixer, when integrated with a catalytic combustor, is expected to reduce gas turbine NOx emissions 1-3 ppm (@ 15% O2). The premixer is also expected to reduce hot spots in the catalyst, thereby preventing premature catalyst deterioration, and broaden the operating range of advanced gas turbines.

Led by the South Carolina Energy Research and Development Center (SCERDC), the project team of the University of California at Irvine Combustion Laboratory (UCICL), Solar Turbines, and Catalytica Combustion Systems has successfully completed the first year of the project. Accomplishments include:

Proposal

The second year of the project will be conducted through an interactive process among SCERDC, UCICL, Solar Turbines, and Catalytica. The premixer concept will be further evolved and optimized by UCICL to meet both combustor and turbine manufacturer design and performance specifications. The premixer design variables will include inlet geometry, fuel injection configurations, and mixing mechanisms through the premixer. Characterization of premixer effectiveness will include measurement of inlet flow velocity profiles and turbulence and outlet fuel concentration profiles using laser fluorescence, optical probes, or intrusive sampling probes.

The resulting premixer designs will be tested in industrial rigs at pressures and temperatures applicable to advanced gas turbine designs, in conjunction with Solar Turbines and Catalytica. The UCICL-developed designs will incorporate all necessary hardware interfaces prior to the gas turbine rig tests. Results of the gas turbine rig tests will feed back to UCICL for iterative system design optimization and scaling consideration. The ultimate goal of this project is practical optimized premixer and catalytic combustor applicable to Solar Turbines’ advanced gas turbine design, the
ATS-S, being developed in conjunction with the Department of Energy's (DOE) Advanced Turbine System (ATS) program.

A third phase to this project may be proposed to the AQMD in the future. The objective of such a third phase would be to develop and test an optimized premixer/catalytic combustion system for a Solar Saturn gas turbine engine. The Saturn gas turbine is one of the most widely used industrial gas turbines in the world, with nearly 5,000 in service and 200 in California. A cost-effective retrofit catalytic combustion system could result in significant emissions reductions from existing gas turbines.

Benefits

The proposed project is included in the September 1997 Update of the Technology Advancement Plan for the Clean Fuels Program under Proposed Project 97S1-1, "Development and Demonstration of Ultra-Low NOx Gas Turbines." The overall objective of this project area is to develop combustors capable of reducing gas turbine NOx emissions to 3 ppm or less without aftertreatment.

The primary benefit expected to result from the proposed contract is a flexible ultra-low NOx catalytic combustion system, applicable to Solar Turbines' entire group of ATS engines, that achieves BACT-level emissions without aftertreatment. These engines will range in size from 300-kW to 15-MW. In addition to stationary power generation, Solar Turbines is seeking to penetrate the diesel locomotive market. The ATS-S engine at 5-MW (6,700 hp) is in the power range that fits locomotive applications. The ATS-S has the efficiency, size, air quality benefits, and, potentially, the cost structure to compete with diesel and natural gas fired reciprocating engines. The project has significant potential for ultimate commercialization success given the active participation by manufacturers Solar Turbines and Catalytica.

Sole Source Justification

Section VIII, (B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision B.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD. Specifically, these circumstances are: B.2.d.(1) projects involving cost sharing by multiple cosponsors; B.2.d.(3) projects involving a commitment to multiple project phases; and B.2.d.(6) projects requiring compatibility with existing specialized equipment. These circumstances are summarized below.

As discussed previously, the proposed project constitutes the second year of funding for a multiple participant, two-year project. Funding for the first year of the project was approved by the Governing Board on February 14, 1997. The project team led, by SCERDC, has successfully completed the first year of the project. Based on this accomplishment, the second year is being recommended for co-funding at this time. As detailed below, the project team also brings substantial cost-sharing participation from each member, including SCERDC, UCICL, Solar Turbines, and Catalytica.

Also, during the first year of the project, specialized facilities and equipment have been developed, constructed, and utilized to complete the project. These facilities and equipment include, but are not limited to,

In addition to these circumstances, the project team is a unique assemblage of organizations that together provide the necessary capabilities, experience, and resources to complete the project and, ultimately, commercialize the developed technology. Specifically:

Resource Impacts

The total amount of AQMD funding for the second year of this contract will not exceed $269,000, for a total two-year AQMD contribution of $534,000. Estimated cost-sharing for this two-year $1,443,000 project is listed below:

Participant

Direct

In-Kind

Solar Turbines

$200,000

$500,000

Catalytica

$141,000


UCICL

$62,000


SCERDC

$6,000


AQMD

$534,000


Total Project

$943,000

$500,000

Sufficient funds are available in the FY 1998-99 Budget from revenues received from the state-mandated Clean Fuels Program to fund the second year of this project. The Clean Fuels Program, under Health and Safety Code Section 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Emission fee surcharges under this Clean Fuels Program are imposed on the largest stationary source facilities within the AQMD and are restricted to support related stationary source clean fuel technology developments.

As noted previously, a third phase may be proposed to the AQMD in the future. The cost-share to the AQMD for such a third phase is expected to be about $100,000. Any such proposal will be evaluated based on progress achieved, AQMD Technology Advancement program priorities, and availability of sufficient funds, and be subject to Governing Board approval.

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