GE (NYSE: GE) Power Generation Services has been selected to provide long-term maintenance services for two GE gas turbines at the Beijing Taiyanggong Thermal Power Station as well as to upgrade and rebuild the turbine combustion systems to become simpler, more fuel flexible and reduce station emissions. The work is part of a renegotiated contractual service agreement (CSA) that will be a first-of-a-kind service model for Chinese utilities looking to reduce the operational costs and environmental impact of their existing power plants.
“This is an important project for us because upgrading our plant’s combustion system can help reduce emissions, thus helping to protect the environment,” said Mr. Cao Mansheng, director, Taiyanggong Thermal Power Station. “Signing this CSA with GE makes strategic sense because it can help ensure the reliable, efficient operation of our facility over a longer period of time, helping us to lower our operating costs as well as overall emissions.”
First built as part of the energy infrastructure needed to support the 2008 Beijing Olympic Games, the 780-megawatt facility is China's first large-scale combined cooling, heating and power plant. The Beijing Taiyanggong Station overhaul marks the first CSA renegotiated project in China for GE. The renegotiated multiyear agreement will cover the plant through 2025.
Within this renegotiated CSA, which was first signed in 2008, GE will upgrade the Dry Low Nox (DLN) burner system of two existing GE 9F.03 gas turbines from a DLN2.0+ to a DLN2.6+ system to enhance the power plant’s fuel flexibility and also comply with government efforts to reduce industrial greenhouse gas emissions. For example, the combustion system upgrades will help the Beijing Taiyanggong Station eliminate its visible emissions during start ups.
“We see this as an innovative service model to deliver technology enhancements in China as operators seek to overcome their fuel-flexibility challenges and improve the environmental performance of their fleets,” said Yang Dan, vice president for GE Power Generation Products and Services—China. “We are committed to help operators both expand the varieties of gases that power plants are using and reduce the resulting emissions. Our DLN2.6+ combustion system will boost the financial return for operators as well by increasing the plant’s overall efficiency to reduce fuel costs. Meanwhile, by extending maintenance intervals, this will increase the plant’s operating hours and overall revenue.”
Both the renegotiated CSA covering the two 9F.03 units and the DLN2.6+ upgrade contract for the gas turbines became effective in December 2014. As part of the renegotiated CSA, GE began providing maintenance services to the Taiyanggong gas turbines in January 2015. Meanwhile, under terms of the DLN2.6+ upgrade contract for the two 9F.03 units, GE will deliver the parts in 2015 and will complete the upgrades for Unit 1 in the first quarter of 2016 and the first quarter of 2017 for Unit 2.