Role of the modern advanced automation solution in

Role of the modern, advanced automation solution in improving energy efficiency Finnish-Polish Energy Seminar 17 September 2010, Warsaw Kari Huovila Mariusz Słoma Metso Automation Polska Sp. z o. o.

Metso is a global supplier of sustainable technology and services • Our customers operate mainly in the following industries: - Mining Construction Power generation Oil and gas Recycling Pulp and paper • About 27, 000 employees in over 50 countries • 2009 net sales 5. 0 billion euros • Shares listed on NASDAQ OMX Helsinki Ltd. © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Extensive offering to process industry Mining industry • Mining and minerals processing equipment and systems; wear and spare parts and service solutions Construction industry • Aggregates processing equipment and systems; wear and spare parts and service solutions Oil and gas industry • Automation and flow control solutions Recycling • Metal recycling solutions • Solid-waste recycling solutions Pulp and paper industry • Process solutions, machinery and Power generation • Process solutions, machinery and • services for energy production from solid and liquid fuels Process automation and flow control solutions © Metso • services for production of pulp, paper, tissue and board, including energy, and chemical recovery solutions Process automation and flow control solutions Finnish-Polish energy seminar. Warszawa, 17 September 2010

Energy and Environmental Technology Automation Power © Metso Recycling

Energy and Environmental Technology Net sales in 2009 EUR 1, 523 million Products and services • Boiler plants, biomass power plants and environmental protection equipment • Energy and process industry automation and information management application networks and systems • Production process measurement systems and analyzers • Control valves and smart shut-off valves • Metal and solid-waste recycling equipment • Knowledge-based services Customers • Power generation industry, oil and gas industry, pulp and paper industry, and recycling industry © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010 By customer industry 43% Power generation 26% Oil and gas 13% Recycling 18% Pulp and paper Services as a % of net sales 35%

A wide scope of fuel-flexible power technology Boiler plants Modular power plants Heating plants Gasification Automation systems POWER SOLUTIONS Recovery boilers Profilers Environmental systems Intelligent control valves Automation Rebuilds and upgrades ESD valves Automation systems 6 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

We serve you in a wide range of industries Power Oil and Gas Chemical and Petrochemical AUTOMATION SOLUTIONS Pulp and Paper © Metso Industrial gas Finnish-Polish energy seminar. Warszawa, 17 September 2010 Other process industries

Study Case: Renewable Energy Generation – Biomass, expected results • Maximization of green energy production (capacity and efficiency) • Stability of production parameters (MWe, steam, dynamic response) • Maximization of production asset Availability • Maximum of asset lifetime vs. minimum of maintenance cost • Minimization of environmental impact(NOx, SOx, dust. . . CO 2) Maximization of Production Efficiency 8 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Biomass Combustion challenges Polish Legislation Rozp. Dz. U. 156 BIOMASS = NONHOMOGENEOUS FUEL • Compulsory needs to use fuel mix of the forest and Agro biomass and in hybrid cases also other fossil fuels (coal, waste) • Biomass properties strongly dependent on the origin and storage conditions • Thus significant variations in heating value, water content and chemical composition 9 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Biomass fuel mix is even more challenging than Coal Combustion Fuel mix = High variations in mass, quality and chemical energy on the fuel feeding 10 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010 Biofuel + Waste + Fossil Fuel + +

Why Metso? • Over 30 years experience in Control of FBB Units (various technology supplier): coal, biomass, waste and multifuel more than 100 references • More than 1000 DCS automation systems delivered to coal, biomass, gas and waste fired Power Plants 10 -1000 MWe • In particular very deep in-house knowledge on the CFB/BFB technology and biomass/multifuel combustion • Experience from: © Metso small (30 t/h) through world largest biomass fired boiler 240 MWe (Alholmens Kraft, Pietarsaari, Finland) up to world largest CFB supecritical 460 MWe unit (Łagisza, PKE Poland ) Finnish-Polish energy seminar. Warszawa, 17 September 2010

Mwe, t Global view on Automation benefits potential Quality Production Environment Cost Quality Cost/MWe t Environmen METSO Benefit Solution Smaller CO 2 footprint Uniformity, reduction degree 12 © Metso High availability, Max. capacity Smaller CO 2 footprint Saving in support fuels and steam dumping Smaller CO 2 footprint Improved steam quality Increased steam prod. capacity Savings in fuel costs Minimize trading losses in prod. upsets Automatic Generation Control Less flue gas emissions Boiler lifetime Better therm. efficiency Boiler Optimizer Facilitates continuous Finnish-Polish energy seminar. Warszawa, 17 September 2010 improvement Avoid forced outages Energy Optima Steam Manager Environmental Reporting including OZE for URE

Energy Optima to plan the optimal energy production and improve the production economy Energy Optima is a modular energy management system featuring • • • 13 Production optimization Electricity forecasting Electricity trading Heat load forecasting Reduce heat and electricity production cost Optimize timing for start-ups and stops Use cheapest fuel mix Improve fuel purchasing Capitalize on the electricity trading potential Same way to plan for every shift © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Fluidized Boiler Combustion Optimizer • Level fuel power • Combustion symmetry • Right temperatures • Optimal O 2 vs CO • Optimal SO 2 control • Optimal NOx control ncy um efficie h Maxim pacity wit ca roduction and p emissions lower 14 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Combustion optimization benefits example: bed temperature stability Temperature Traditional Optimized • Lower thermal losses • Fewer reagents • Longer boiler life • Reduced NOx and SO 2 • Less bed material replacement Calorific value 15 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Summary of Selected Results • Flue gas O 2 • Bed temp. deviation • Flue gas O 2 symmetry L/R • CO emissions • NOx emissions • Thermal Efficiency 16 © Metso 0. 4% reduction 30%-70% reduction 80% improvements 10%-30% reduction 0. 4%-2% improvements Finnish-Polish energy seminar. Warszawa, 17 September 2010

Metso Automation References in Poland CHP Starogard PEC Suwalki IP Kwidzyn Polpak Grudziadz Mondi Swiecie SE Ostroleka Delitissue Ciechanow ZEDO/PGE Elektrownia Szczecin Kostrzyn APK Hanke Tissue Poznan Warsaw CHP Zielona Gora/Ed. F PPTurow Vattenfall Heat Poland EC Zeran , EC Siekierki Konstans P&P PP Kozienice Lodz Wroclaw Kogeneracja ZAKChemical Plant Ed. F/Czechnica CHPGliwice CHP Zabrze Praga Gliwice CHP Tychy* Martin CHP Krakow CHP Kielce Myszkow Paper Mill PKE/PP Lagisza PKE/PP Siersza PP Jaworzno PP Power Plants CHP Plants FGD in Power Vienna Chemical Industry PAS Pulp and Paper Metso Automation Polska Sp z o. o. 44 -100 GLIWICE, ul. Kościuszki 1 c + 3 local Offices 17 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Selected Metso/Automation references for FBB technology in Poland New investments in progress: • 2011 PGE ZEDO SA – El. Szczecin new boiler BFB 70 MWe, biomass • 2010 Stora Enso – Ostrołęka new boiler CFB 47 MWe, multifuel PGE/PP Szczecin /Metso EC Starogard/Rafako EC Białystok/Metso EC Saturn Metso SE Ostrołeka/Metso VHP SA - EC Żerań / Rafako PGE Turow/Foster Wheeler EC Czechnica/ Metso EC Tychy/Metso • 2010 ZEW Kogeneracja SA, EC Czechnica, 105 t/h BFB retrofit PKE SA: El. Łagisza/ Foster Wheeler El. Siersza / Rafako EC MARTIN Kotły BFB Kotły CFB 18 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Case: PEP EC Saturn/Mondi Świecie OP 140 BFB Retrofit -100% Biomass 2009 Technology under metso. DNA control: ü ü OP 140 converted to BFB, 100% biomass fired (Metso Power technology, 100 t/h, 9, 6 MPa/ 510 o. C / 71 MWth) Biomass handling and feeding system with capacity 170 m 3/h, q. Bed temp. stability and deviation control q. Flue gas O 2 symmetry L/R q. Resulting support for NOx emissions q. Steam temp. and pressure stability q. Overall system availability improvements through parameters diagnostic and reporting q„Green energy” reporting for URE approval 19 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Case : PKE S. A. Łagisza, CFB based supercritical 460 MWe Unit, 2009 20 © Metso ð Once-through supercritical, coal fired CFB Foster Wheeler, based on Siemens Benson technology with vertical tubing and low mass flow. ð Steam parameters: steam flow 359, 8 kg/s HP steam pressure 27. 5 MPa HP steam tem 560 C RH st. temp at IP turbine inlet 580 C Þ efficiency 46% Þ Primary fuel hard coal, but basic design allows for using : Þ 10% of biofuel Automation Challange: Merge low mass flow and fast water steam in once-through with inert CFB response Finnish-Polish energy seminar. Warszawa, 17 September 2010

Case : PKE S. A. Łagisza, Metso Control Solution and Results with Metso Unit Master Control and Model Predictive Controller (MPC ) • BASIC IDEA: - One controller coordinating all main unit controls metso. DNA environment Model predictive unit controller (MPC) • CONTROLLED VARIABLES: - Electrical power Boiler-Turbine balance Critical T and P Tank levels - Modified sliding pressure Primary power control with condensate flow and turbine governor valve (seconds reserve) Secondary power control with firing rate (minutes reserve) Tank levels used as energy reserved • CONTROL STRATEGY: - • RESULTS Grid Operator Tests and Approval within 3 weeks. 21 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010 n tio za i im pt O Combustion optimization ls ID ro nt co PID-control loops P o Pr s ce s Actuators

Case: Kogeneracja S. A Wrocław/Czechnica OP 140 BFB Retrofit-100% Biomass, 2010 Technology under– metso. DNA control: ü ü OP 140 converted to BFB, 100% biomass fired (Metso Power technology, 100 t/h, 7, 2 MPa/ 500 o. C / 76 MWth Biomass handling and feeding system with capacity 180 m 3/h, q „Green energy” reporting including biomass and liquid biofuel with automatic sampling q. Steam temp. and pressure stability q. Bed temp. stability and deviation control q. Flue gas O 2 symmetry L/R q. Resulting support for NOx emissions q. Overall system availability improvements through process parameters diagnostic and reporting 22 © Metso Finnish-Polish energy seminar. Warszawa, 17 September 2010

Metso Results for Biomass Combustion Metso advanced control solutions: fuel power compensator Boiler balance Fuel Master Oxygen consumption Controlpower Fuel demand / - steam flow - steam pressure - steam temperature - feed water temp. - oil/gas flow - air flow - flue gas O 2 - solid fuel flow © Metso * Fuel Load Allocator Fuel flow fuel heat value max Combustion Air Calc , MW €

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