LPG For Power Generation

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GE Power

LPG for power


generation
Lower your costs and emissions with
gas engines from GE's Distributed
Power business
imagination at work
What is LPG?
Liquefied petroleum gas (LPG) is a mixture of The bulk of the world’s LPG supply is from the
propane and butane. Its composition can vary Middle-East. This is typically a heavier blend
from place to place, ranging from pure containing a higher proportion of butane 10.04 Diesel
propane or butane to mixes. Almost half of versus propane in the mix.
the global LPG use today is for cooking 1.24 Kerosene
purposes. In North America, a commonly However, during the past five to seven years, a 3.91 Jet
referred to blend is HD-5 specification, which major secondary source of LPG 6.80 Other
contains at least 90% propane. has emerged – shale oil and gas drilling.
1.68 Fuel oil
The NGLs obtained from shale oil and gas 1.72 LPG
Where does LPG come extraction are fractionated to obtain LPG. This
blend is typically lighter with a higher
from? proportion of propane versus butane
19.36 Gasoline

in the mix.
The main source of LPG historically has been
crude oil refining, where it is a by-product of It is important to note that the source and Source: EIA
the refining process. blend composition of LPG can significantly
A barrel of crude typically is made up of about influence engine performance and associated
3.9% LPG. project economics.

LPG composition: (X% propane, Y% butane)


LPG composition: (X% propane, Y% butane)
Cooking fuel range - 30% to 70% butane
n-Butane

HD5
(50%, 50%) (90%, 10%)
Butane Propane
(0%, 100%) (100%, 0%)
iso-Butane

Higher butane % in LPG Higher propane % in LPG

3050 BTU/scf 2350 BTU/scf


Primary LPG source - Secondary LPG source -
Crude oil refining Shale oil and gas drilling
Why LPG now?
With shale oil and gas drilling, the LPG supply has increased,
and in turn put downward pressure on LPG prices in many
parts of world. As shown below, global supply has been
growing at more than 5% pa. In comparison, the crude oil
supply growth has averaged only 1.2% pa.
Global LPG supply (MBPD)
LPG is trading at favorable rates Global LPG Supply (MBPD)
relative to liquid fuels such as diesel Compared to 1.2% Regional
8,000 pa for crude CAGR
in many places around the world. Algeria
Angola

Although recent oil price declines 7,000


5.1%
Nigeria
Libya
+1.9%

have eroded some of the discounts, 6,000 Iran


Iraq
most LPG price projections seem to 5,000 Kuwait
Qatar +3.4%

indicate that this favorable discount 4,000


Saudi
Arabia

is likely to continue into the future. 3,000


UAE
Venezuela
-3.7%
Indonesia
2,000

US +8.6%
1,000

0
2010 2011 2012 2013 2014 2015 2016
Source: EIA, Argus

Price ratio: Diesel & Propane


Price Ratio: Dieselto Brent Crude
& Propane to Brent crude
Source: EIA, OPEC
1.6

1.4

1.2
USGC diesel to Brent
1
USD/bbl

0.8

0.6
Mont Belvieu LPG/Propane to Brent
0.4

0.2

0
Mar-06 Aug-07 Dec-08 May-10 Sep-11 Jan-13 Jun-14 Oct-15
Key benefits of LPG power generation

Better economics
Favorable price spreads and power generation cost savings versus liquid fuels
Increased energy security
Use of local fuels as an alternative to imported diesel and natural gas
Fuel flexibility
Ability to switch to LPG to avoid disruptions when there are natural gas supply concerns
Increased asset availability
Lower maintenance events and costs with cleaner LPG versus liquid fuels
Lower emissions
Cleaner burning versus liquid fuels
Natural gas ready
Bridge from liquid to natural gas – start on LPG, transition to natural gas
Easier to use
Simpler to handle and operate versus CNG/LNG, and no engine modifications needed for LPG

GE products that can run on LPG


GE’s Waukesha and Jenbacher engines can operate on LPG. Our Waukesha
engines are extremely fuel flexible and can operate all the way down to pure
butane, and our Jenbacher Type 3 and 4 engines are capable of operating on
pure propane and HD-5 LPG blends.

Waukesha Jenbacher
0.16– 0.60 MW 0.37 – 1.3 MW 1.8 – 2.3 MW 0.40 – 0.68 MW 0.90 – 1 MW

LPG type VGF VHP 275GL+ Type 3 1


Type 41
HD-5 and above (≥ 90% propane) X X X X X
50% to 90% propane X X
<50% propane (including 100% butane) X
1. Rating available on special release
GE’s product ratings

Waukesha (100% propane and HD-5)


1,500 rpm/50 Hz 1,800 rpm/60 Hz
VGF kWe gal/hr kWe gal/hr
P48GL (LCR) 625 74 750 96
L36GL (LCR) 471 56 562 71
H24GL (LCR) 313 37 372 48
F18GL (LCR) 235 27 279 34
VHP 1,000 rpm/50 Hz 1,200 rpm/60 Hz
P9394GSI 1,099 139 1,322 172
P9390GL 933 118 1,121 147
L7044GSI 675 92 808 115
L5794GSI 623 82 762 104
F3524GSI 372 56 442 69
275GL+ 1,000 rpm/50 Hz 900 rpm/60 Hz
16V275GL+ 2,351 274 2,121 245
12V275GL+ 1,755 204 1,589 182

Waukesha (50% propane, 50% butane)


1,500 rpm/50 Hz 1,800 rpm/60 Hz
VGF kWe gal/hr kWe gal/hr
P48GL (LCR) 625 84 750 105
L36GL (LCR) 475 65 560 79
H24GL (LCR) 310 42 375 53
F18GL (LCR) 230 32 280 40
VHP 1,000 rpm/50 Hz 1,200 rpm/60 Hz
P9394GSI 932 121 1120 153
L7044GSI 625 83 750 104
L5794GSI 517 69 620 86

Waukesha (100% butane)


1,500 rpm/50 Hz 1,800 rpm/60 Hz
VGF kWe gal/hr kWe gal/hr
P48GL (LCR) 391 58 469 69
L36GL (LCR) 294 43 351 52
H24GL (LCR) 196 29 233 34
F18GL (LCR) 147 22 174 26

Jenbacher (100% propane and HD-5)


1,500 rpm/50 Hz 1,800 rpm/60 Hz
Model kWe gal/hr kWe gal/hr
J312 409 46 446 49
J316 546 61 595 65
J320 682 77 744 81
J420 926 97 1,022 106
LPG project economics
100% propane/HD-5 on a Jenbacher Type 420 vs. diesel1 50% propane/50% butane on a Waukesha VHP vs. diesel2
HD-5 vs. diesel $/kWh spreads (fuel only) LPG vs. diesel $/kWh spreads (fuel only)
LPG LPG
$/Gal 0.53 1.06 1.59 $/Gal 0.53 1.06 1.59
$/mmBTU 6 12 18 $/mmBTU 6 12 18
1.94 15 $0.07 $0.02 ($0.04) 1.94 15 $0.06 ($0.01) ($0.09)
Diesel 2.59 20 $0.11 $0.06 $0.00 Diesel 2.59 20 $0.10 $0.03 ($0.04)
3.24 25 $0.15 $0.10 $0.04 3.24 25 $0.15 $0.07 $0.00

Notes
1. Assuming J420 vs. diesel @ 42% efficiency
2. Assuming VHP vs. diesel @ 38% efficiency

Project development
GE and our partners around the globe aim to provide
you with a turnkey LPG power generation solution.
Our offering typically covers engines and their
associated service support, LPG sourcing and local
delivery, onsite storage solutions, various forms of
financing solutions (ranging from loans and leases to
power purchase agreements) and overall project
Fuel Infrastructure
integration.

Engine
Project Financing
Integration

For more information about LPG and GE's gas engines,


contact us at: LPG Procurement
[email protected]
[email protected]
www.ge-distributedpower.com
GE Power’s Distributed Power business is a leading provider of engines, power equipment and services
focused on generating power at or near the point of use. Distributed Power offers a diverse product
portfolio that includes highly efficient, fuel-flexible, industrial gas engines generating 100 kW to 10 MW
of power for numerous industries globally. In addition, the business provides life cycle support for more
than 35,000 gas engines worldwide to help you meet your business challenges and success metrics –
anywhere and anytime. Backed by our authorized service providers in more than 170 countries, GE’s
global service network connects with you locally for rapid response to your service needs.
GE’s Distributed Power business is headquartered in Jenbach, Austria.

More information on GE’s Distributed Power technology:

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Imagination at work

GE’s Distributed Power business is a unit of the General Electric Company. The GE brand and logo are trademarks of the General Electric Company. © 2015 General
Electric Company. Information provided is subject to change without notice. All values are design or typical values when measured under laboratory conditions.
GEA-32505 0716

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