Gas Turbine Economic Analysis Study

Client: White Energy LLC
Completion Date: 2015
Location: Russell, Kansas

Summary

We conducted a comprehensive economic and cost analysis of an existing gas turbine combined heat and power (CHP) facility. The study was performed on behalf of White Energy Ethanol and the City of Russell.

The city owns and operates two Taurus 70 gas turbines and heat recovery steam generators; they are sited at White Energy’s ethanol plant. The plant sells steam to White Energy under a steam sales agreement and is dispatched into the Southwest Power Pool (SPP) wholesale market when economical.

White Energy desired to understand the economics of the facility and how and when the plant should be dispatched into the market to generate the maximum value to both the utility and the ethanol plant. Alternative modes of operation and steam sales agreement structures were considerations.

Our team conducted a detailed investigation and analysis of the plant’s costs, performance, market modeling and contract rate structure to provide the parties with a complete picture of the facility’s costs for the purposes of modifying the steam sales agreement and operating philosophy. The study results and report were presented to both parties.


Services

  • Operation and maintenance (O&M) cost development
  • Performance modeling
  • Market modeling 
  • Production cost analysis
  • Steam agreement review
  • Economic modeling

Features

  • Plant performance validation
  • Fixed and variable cost development
  • Market production dispatch analysis
  • O&M and production cost review
  • Rate contract structure review and recommendations
  • Economic modeling and pro forma development
  • Alternative CHP project development
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