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Owner Challenges & Expectations to Build the Next Generation of Power Plants Callum Ford 21-22 August 2008 Hilton Opera Hotel Hanoi, Vietnam
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Page 1: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Owner Challenges & Expectations to Build the Next

Generation of Power Plants

Callum Ford

21-22 August 2008

Hilton Opera Hotel

Hanoi, Vietnam

Page 2: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineAgenda

About STP

Why are we doing this now? Current industry outlook

New Build Opportunities – Units 3&4

Another Opportunity – Units 1&2

Question & Answers

Page 3: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineCarl Sayko

Current Position: General Manager of Support Services for Units 3 &

4, STP Nuclear Operating Company

Responsibilities: Project information technology, scheduling,

estimating, cost, purchasing, contracts, records management,

document control, and human resources

Experience: 35 years in nuclear power management positions – 24

years with STP and 11 years with a major AE firm and as a consultant

Accomplishments: As project manager, set four world records in

Turbine Outage Schedule Performance. Project manager for STP

Units 1&2 Turbine Replacement Project which was awarded the 2007

Power Engineering Magazine Nuclear Project of the Year Award.

Education: Economics degree from the University of Pennsylvania

Personal: Married to Pamela and has 4 children

Page 4: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineAbout STP

The South Texas Project Electric Generating Station is located 90

miles southwest of Houston, near Bay City, TX.

South Texas Project Nuclear Operating Company (STPNOC) is jointly

owned by Austin Energy (16%), CPS Energy (40%) and NRG Energy

(44%) who share its output in proportion to ownership.

The current Units 1&2 produce 2.7GW annually.

On September 24th, 2007 STPNOC applied for a license to build and

operate two new units. This was the first application for a new nuclear

plant in almost 30 years.

Page 5: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineSTP Accomplishments

2008

May 7 -- STP receives another Best of the Best Award, the plant's third, andanother Top Industry Practice Award, the plant's seventh, for developing andapplying risk management for maintenance applications.

2007

The South Texas Project’s Unit 1 nuclear reactor safely led the nation – and

all 442 reactors worldwide – in electric generation in 2007. In addition, STP’s

Unit 2 had the third highest production nationally and ranked number 14

globally despite a refueling and maintenance outage last year.

Dec. 12, 2007 -- Power Engineering magazine presented a 2007 Project of

The Year Award to the STP Nuclear Operating Company for excellence in

replacing the low pressure turbines in both STP units. The publication

honored STP's turbine replacement effort as the Best Nuclear Project

worldwide.

September 17 -- STP reports lowest production cost among U.S. nuclear

plants, 1.356 cents per kilowatt-hour in 2006.

Page 6: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineSTP Accomplishments

2007 (Cont’d)

April 20 -- The low pressure turbines and main generator rotor in Unit 2 werereplaced in 28 days, setting a new world record.

March 26 -- STP completes a second, and consecutive, breaker-to-breakerproduction run. Unit 2 operated continuously for 508 days between scheduledrefueling outages.

2006

October 27 -- The low pressure turbines in Unit 1 were replaced in 26.5 days,establishing a new world record.

October 1 -- STP completes the first breaker-to-breaker production run in theplant's history. Unit 1 operated continuously for 532 days between scheduledrefueling outages.

STP Unit 2 led all 103 reactors nationwide in production, operatingcontinuously all year and generating 11.22 billion KwH. Its output was the thirdhighest of the 442 reactors worldwide.

STP Unit 1, which was routinely shut down 34 days last year for refueling andmaintenance, generated 10.14 billion KwH. Despite the outage, the unit stillranked sixth in the country and seventeenth globally.

Page 7: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineThe Outlook For Our Earth?

1.6 billion people – one quarter of the world’s population,

have no access to electricity.

The demand for electricity in developed countries

continues to grow.

29,028 ft29,028 ft

Page 8: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineElectricity Around the World

Page 9: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineForecast Electricity Demand

Page 10: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Coal:

49.9%

3%

Oil

18.6%

Natural

Gas

19.4%

Nuclear

6.4%

Hydro

2.7%

Renewables

US Portfolio

Page 11: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

2009TBDTBDTBDFPL

TBD (ESP in review)TBDTBDClintonExelon *

20082APWRComanche Peak

(TX)

Texas Utilities

20081EPRCallowayAmeren/UniStar

20082EPRAmarillo (TX)Amarillo Power/UniStar

20072ABWRSouth Texas

Project (TX)

STPNOC

20081-4EPRCalvert Cliffs (MD)

Nine Mile (NY)

Constellation/Unistar

2008 (ESP in

review)

2AP 1000Vogtle (GA)Southern Co.

20072AP 1000V.C. Summer (SC)SCE&G/Santee

Cooper

20082TBDLocation TBD (FL)Progress Energy

20072AP 1000Harris (NC)Progress Energy

20072AP 1000Bellefonte (AL)TVA/Southern

20081ESBWRRiver Bend (LA)Entergy

20071ESBWRGrand Gulf (MS)Entergy

20072AP 1000Cherokee (SC)Duke Power *

20071ESBWRNorth Anna (VA)Dominion

COL Application

Filing Date

Number of

Reactors

DesignSiteCompany

16

US Nuclear Industry Plans

Page 12: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Performance of existing fleet

Energy Policy Act of 2005

Predictable and economic

Clean and low emissions

Why Build Nuclear?

Page 13: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

New Build Opportunities – Units

3&4

Page 14: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Existing design certified by the Nuclear Regulatory Commission

Established supply chain

Construction track record

Four similar plants operating

successfully in Japan

Additional plants under

construction

Leading versus bleeding edge

The ABWR

Page 15: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineNew Build Objectives – Units 3&4

Complete the project within established schedule and budget

parameters.

Achieve the Energy Policy Act benefits.

Support the U. S. nuclear renaissance.

Deploy an integrated IMS to facilitate state of the art project

management tools through design, construction, commissioning and

data handover to operations and maintenance.

New build data and systems flange with operating and maintenance

system being developed in existing units.

Configuration management environment is highly transparent.

Page 16: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Safe and reliable operation of existing units

Total project approach

COLA

Contracts and procurement

Modularisation plan

Long-term staffing and training

Challenges

Project Focus

Page 17: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Safe and reliable operation of existing units

Total project approach

COLA

Contracts and procurement

Modularisation plan

Long-term staffing and training

Challenges

Project Focus

Page 18: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Standard construction techniques

Hard copy drawings and specifications

Limited Information Technology

Schedules not electronically linked

to design & procurement data bases

Integration through communication

and collaboration skills

Site specific design

Overlap in design and construction

schedules

Previous Nuclear Construction Projects

Page 19: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Project management finesse

STP’s facilitative culture

High standards of excellence

Planning mentality

Strong communications

Collaboration & decision making

Teamwork

Project management tools

Project Culture – Key Success Factors

Page 20: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineData Handover Paradigm

Information organisation in the project execution phase is

different than for the operational facility.

Not all the information generated during the project is

required in O&M – we intend to identify this early and not

leave until the end.

Provide clear and precise guidelines as to what we receive

and when we receive it and incorporate it into the EPC

contract.

Ensure that the information provided is consistent with our

configuration and change management strategies and is

readily transferable into our new company operations and

maintenance system.

Page 21: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

EPC“where time TOTO market

is imperative”

Engineering data in Execution is stateful, volatile, temporal

and spread across disparate sources & owners

Progress

Management

Instrumentation

Design

Project

Management

Instrument

Data Sheets

Process

Simulation

Specifications

& Standards

P&ID

Contracts

Mechanical

Equipment

Design

Electrical Design

Line

Lists

Valve

Lists

GA’s and ISO’s

Civil & Structural

Cabling &

Lighting

Hook up &

Installation

Document

Control

Project

Portal

Time allocation

& measurement

PFD

Automation &

Control Design

Hazop

Requisitioning

Equipment

Data Sheets

Plant 3D

Modeling

SLD’s &

Schematitcs

HVAC

Procurement

Cost Controls

Equipment

Lists

EDMS

Supplier

Gateway

Shipping

Construction

Sequencing

Test &

Commissioning

planning logic connectivity layout actual completion

Page 22: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Process

Control

SPC

Work Order

Execution

Engineering data in Operations spreads across multiple

plant operational systems & time domains

ERP

Product / plant

Lifecycle

mgmt

EDMS

Specialty

Quality

Admin

Product

Specs

Plant

Centric

ERP

Chemistry

MgtBatch

Mgt

SCADA

SPC / Trends

Process

Planning

Optimisation

Data

Historian

MES

LIMS

FCP

Factory Schedule

AutomationControl

Logic

Data Capture

Procurement

Financials

CRM

Trading

Exchange

Supply

Chain

Machine

LogicProcess

Mgt

Plant

Operations

Production

Schedule

Business

Process

Supply

Chain

Customer

Plant

Supply

Chain

Extended

Supply

Chain

Process

Automation

In Process

Testing

Enterprise

Production

Unit

Production

Process

Machine

Reliability monitoring

& optimisation

Original diagram source courtesy: AMR Research

OO“where time ININ market

is imperative”

Page 23: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineConfiguration Management

AssetAsset

(inventoried item)(inventoried item)

TagTag

(functional location)(functional location)

P-101

11

11

“and, if it breaks, where are the

spares or where can we find a

similar model?”

N N

Logical or Functional

Location“what are the characteristics to

fulfill the process need”

Engineering

Domain = logical

ModelModel

(standard equipment)(standard equipment)

Pump Catalog

Centrifugal

Model # CP-C-4020

Specifications:RPM: 1500

Material: Cast Steel 316

Model or Std Equipment“what we can purchase

to fulfill the process need”

Purchasing

Domain = typical

Actual or Physical“what we have installed

to fulfill the process need”

Operations

Domain = actual

Page 24: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & Marine

Units 1&2 – Another Opportunity

Page 25: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineUnits 1&2 Introduction

South Texas Project 1

Palacios, Texas, United States

Pressurised Water Reactor (PWR)

Westinghouse Electric Corp.

Net Output: 1250 MWe

Operable. Initial criticality: 03/1988; Commercial start: 08/1988

South Texas Project 2

Palacios, Texas, United States

Pressurised Water Reactor (PWR)

Westinghouse Electric Corp.

Net Output: 1250 MWe

Operable. Initial criticality: 03/1989; Commercial start: 06/1989

Page 26: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineUnits 1&2 Success – Why Change?

Commitment to operational and financial excellence

Texas is a deregulated market

Future financial improvements will largely come fromtechnology and process improvements

Attaining “fleet like” economies of scale is a key element ofour Business Plan and requires common processes andsystems for all 4 units

Page 27: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineUnits 1&2 Objectives

Develop a strategic plan to capture relevant legacy data

Paper

Mylar

CAD Files

Raster Files

Individual databases

Evaluate commercial technologies to replace current in-housedeveloped applications - i.e. master equipment database

Integrate with new Operations and Maintenance system

Provide a harmonised and integrated IT infrastructure and supportingtechnologies across Units 1&2, consistent with Units 3&4

Capitalise on 3-D modeling for continued outage and modificationexcellence

Page 28: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Process, Power & MarineQuestion/Answer

Page 29: Owner & EPC Challenges and Expectations to Build the Next ... · Owner Challenges & Expectations to Build the Next Generation of Power ... applying risk management for ... to Build

Owner Challenges & Expectations to Build the Next

Generation of Power Plants

Callum Ford

21-22 August 2008

Hilton Opera Hotel

Hanoi, Vietnam


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