Fuel Cost Savings

Usually the economic returns that arise from introducing an On-Line Analyser System are overwhelming. SGS is a leading global supplier of these innovative and technologically advanced services and our technical team will provide complete support services for your new or existing On-Line Analyser System. Through our global technical leadership, we will provide you with the accuracy you need to run your facility at maximum efficiency.

Up to 75% of the total cost of generating power from coal can be a direct result of fuel costs. Any reduction in the amount of coal burned can result in significant cost savings and have a substantial influence on a power plant’s financial performance. With an On-Line Analyser System controlling the blending process, you will be able to accurately blend high and lower sulfur coals to meet SO2 regulatory limits on a consistent basis without burning excessive amounts of coal. Such optimisation of low sulfur equals a reduction in overall fuel expenses for your operation.

Real Time Analysis and control of coal quality characteristics allows you to adjust the quality of the coal you are burning to match the output requirements of the power plant. Blending in more high quality coal during peak periods and blending in less during off-peak periods allows you to generate the maximum megawatts possible without exceeding environmental limits. This allows you to minimise the number of tons of coal you burn per megawatt of electricity produced.

Example of Fuel Cost Savings Due to Blending Controls
A power plant has a captive mine that produces higher sulfur coal for the power station at $18/ton. However, poor quality of the coal requires the plant to purchase lower sulfur imported coal at $40 a ton and blend with the local mine’s coal to meet environmental regulations. The local coal must be blended with imported coal at fixed ratio of 90:10 to meet environmental requirements. However, records show that there are extended periods when the plant emissions are considerably below the permit requirements. Changing the ratio of local to import coal to an average of 95.5: 4.5 allows for fuel savings. This controlled blending was done using On-Line Analyser controlled blending

With a savings of this magnitude, the pay-back period for a coal analyser system was less than 2 months.

Table 1: Fuel savings arising from more effective use of expensive low sulfur coal.