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Muja AB Power Station Refurbishment - Technical Review - RFQ FIN13047

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Muja AB Power Station Refurbishment - Technical Review - RFQ FIN13047 ATTACHMENT 2 )d.011-16 Client: Public Utilities Office Title: Muja NB Power Station Refurbishment - Technical Review Subtitle: RFQ FIN13047 Document No: 2158941A-DMS-RPT-001 Date: 26 August 2013 A 16/08/2013 Draft Report 0 26/08/2013 Final Report to Public Utilities Office ■ 4Ni_oi)ro) ; i'k=\,-4(=-0 '=:11;•=.iit.;, l 'i-:°Thir°1'.0'3-i-r1L-• L Robertson - Prepared by: M Rudge Date: 26/08/2013 Signature: B Jarman Reviewed by: N McGimpsey Date: 26/08/2013 Signature: /7:Y2.____ Approved by: A Crichton Date: 26/08/2013 Signature: ,,--!/ ,-- -. D11,10141 Public Utilities Office, Parsons Brinckerhoff file, Parsons Brinckerhoff Library This document and the information are solely for the use of the authorised recipient and this document may not be used, copied or reproduced in whole or part for any purpose other than that for which it was supplied by Parsons Brinckerhoff. Parsons Brinckerhoff makes no representation, undertakes no duty and accepts no responsibility to any third party who may use or rely upon this document or the information. The intellectual property of any new material (but excluding any Existing Material of Parsons Brinckerhoff) contained in this document is owned by the State of Western Australia. Parsons Brinckerhoff Australia Pty Limited ABN 80 078 004 798 Level 5 503 Murray Street Perth WA 6000 PO Box 7181 Cloisters Square WA 6850 Australia Tel: +61 8 9489 9700 Fax: +61 8 9489 9777 Email: perth©pb.com.au www.pbworld.corn Certified to ISO 9001, ISO 14001, AS/NZS 4801 A GRI Rating: Sustainability Report 2011 Public Utilities Office Muja NB Power Station Refurbishment - Technical Review - RFQ FIN13047 onten s Page number Executive summary iv 1. Background (pre-refurbishment) 1 1.1 Station specification 1.1.1 Tangent boiler tube walls 2 1.2 Station operation, pre-2007 3 1.2.1 General 3 1.2.2 Performance 3 1.2.3 Life extension study 3 1.2.4 AR Energy Extended Operation report 3 1.3 Decommissioning and preservation 4 2. Report scope 5 2.1 Scope 5 2.2 Exclusions and limitations 5 2.2.1 Scope of services and reliance of data 5 2.2.2 Study for benefit of client 5 2.2.3 Other limitations 6 2.2.4 High level report 6 Information sources 7 3.1 Information requests 7 3.2 Site visit 7 3.3 Expert input 7 4. Refurbishment project 8 4.1 Operation prior to shutdown 8 4.2 Refurbishment project 8 4.3 Boiler tube failure and unplanned repair work 9 4.4 Reinstatement project 9 4.4.1 Scoping 9 4.4.2 Project status and financial forecast at suspension of work 13 5. Unplanned boiler repair 16 5.1 M3 tube failure 16 5.1.1 Failure significance 16 5.1.2 Investigation 16 Parsons Brinckerhoff I 2158941A Public Utilities Office Muja NB Power Station Refurbishment - Technical Review - RFQ FIN13047 5.1.3 Review of investigation work 17 5.2 Remedial work following M3 tube failure 20 5.2.1 Scoping criteria 20 5.2.2 Remedial work scoping (each unit) 23 5.2.3 Remedial work (each unit) 23 5.3 Status of remedial work as at end of July 2013 26 5.3.1 M3 and M4 Boilers 26 5.3.2 M1 and M2 boilers 27 5.4 Conclusion — boilers 28 5.4.1 Calculated remaining service life — pressure parts 28 5.4.2 Adequacy of remedial work scoping 28 5.4.3 Adequacy of remedial work 29 5.4.4 Remnant risk - pressure parts 29 5.4.5 Boiler components other than pressure parts 30 6. Assessment — remainder of station refurbishment 31 6.1 Conclusions about major equipment items 31 6.2 Mechanical equipment and systems 32 6.2.1 High pressure turbine 32 6.2.2 Low pressure turbine 36 6.2.3 Turbine cross-over pipework 37 6.2.4 Turbine auxiliaries 38 6.2.5 Surface condenser 38 6.2.6 High pressure steam piping 39 6.2.7 HP boiler feedwater pumps 41 6.2.8 Condensate and feedwater system 41 6.2.9 Cooling water system 42 6.2.10 Coal feeding and pulverising plant 43 6.3 Electrical equipment 43 6.3.1 Generator / excitation system 43 6.3.2 HV/LV switchgear 45 6.3.3 Generator transformers 47 6.3.4 Unit transformers (11.8 / 3.3kV) 48 6.3.5 Unit auxiliary transformers (3.3/ 0.44kV) 49 6.3.6 Large electric motors 50 7. Station risk review 51 7.1.1 Asset management plan 51 7.1.2 Non-recurring maintenance planning 51 7.1.3 Risk mitigation planning 51 7.2 Plant commissioning 51 7.3 Operational risks 52 7.4 Equipment risks 52 7.5 Risk assessment and mitigation 53 Parsons Brinkerhoff I 2158941A I ri Pu e Muja NB Power Station Refurbishment - Technical Review - RFQ FIN13047 Conclusion 54 8.1 Overview of refurbishment scope 54 8.2 Boiler refurbishment 54 8.2.1 Identification of cause - M3 boiler tube failure 54 8.2.2 Remedial work 54 8.2.3 Risk of recurrence of the issue that caused the M3 tube failure 55 8.2.4 Ongoing boiler risks 55 8.3 Non-boiler plant refurbishment 55 8.3.1 Material risks 55 8.4 Return to service of Muja A/B 56 igures Figure 4.1 Verve Energy milestones: 19 June progress report 14 Figure 4.2 Verve Energy projected financials: 19 June progress report 15 f appendices Appendix A Quest Integrity Group - Review of Boiler Tube Failure Appendix B Public Utilities Office - Scope of Work Appendix C Glossary and Abbreviations Parsons Brinckerhoff I 2158941A I iii Public Utilities Office Muja A/B Power Station Refurbishment - Technical Review- RFQ FIN13047 Executive summar ground The refurbishment of Muja A/B commenced in 2010 by a Joint Venture (known as Vinalco) between Verve Energy and Inalco Energy, and was suspended by the Government of Western Australia in June 2013. Parsons Brinckerhoff was engaged by the Public Utilities Office (Department of Finance) to conduct a high- level technical review of the Muja A/B Refurbishment Project on 29 July 2013. This review was conducted over a three week period, and included a brief site visit by Parsons Brinckerhoff staff. The scope of this report is to: 1. Assess the root cause of the external boiler corrosion, and to consider if this issue is prohibitive to completing the refurbishment project. 2. Conduct a desktop review of other major equipment items to determine if any of these items pose a material risk to the ongoing viability of the Muja NB refurbishment and subsequent operation. Boiler corrosion As concluded in the Verve Energy report of July 2013, the primary cause of the July 2012 Unit M3 boiler tube failure is considered to be external corrosion. This corrosion is believed to have occurred as a result of acidic wet fly ash/coal being present between the boiler tubes and boiler refractory. There were a number of factors contributing to the presence of this wet fly ash/coal, including boiler wash-downs and an extended shutdown duration. Based on the documentation provided and interviews with station staff, Parsons Brinckerhoff considers that the process followed by Vinalco and Verve Energy to identify sections of boiler tubes requiring replacement, while a difficult logistical issue, was as thorough as practical. The possibility of un-identified issues cannot be excluded, but the probability of these is considered to be no higher than for other occasions on which boilers have been brought back into service. Parsons Brinckerhoff has seen no evidence to doubt the quality of the remedial work carried out on boilers Ml to M4. A substantial amount of boiler tubing has been replaced with new tubing. While the minimum thickness of 4 mm for the remaining tubing provides only limited margin for future corrosion, the implementation of the proposed operational measures to mitigate ongoing corrosion should allow for ongoing plant operation. Continued rigorous monitoring is required, and some routine tube replacements are expected during future overhauls. It is considered that monitoring should include the removal of small areas of the furnace wall cladding and refractory at selected locations to allow for inspection. When boilers are returned to service and are operational (hot) the boiler tube/refractory interface will be completely dry and so external corrosive action will cease. If the boilers are taken out of service, the potential for recurrence of external corrosive action remains. Parsons Brinckerhoff 12158941A I iv Muja A/B Power Station Refurbishment - Technical Review - RFQ FIN13047 Verve Energy has proposed a number of changes to operation and lay-up procedures to help mitigate the external corrosion risk, including the application of "Metalfix" paint to old boiler tubes; restricting boiler washdown to defined circumstances; using an alkaline solution for washdown; and firing the boiler on oil after boiler tube repairs to dry the refractory. Parsons Brinckerhoff considers that further changes to operational procedures (particularly for inspections and minor repairs) may eliminate the need for boiler washdown. Other ma. .. .isks From the evidence provided, Vinalco and Verve Energy have carried out a significant amount of inspection work in conjunction with the rehabilitation project in order to reduce the risk of future unplanned events. However, the plant is long past its design life, was operated on a minimal maintenance regime leading up to shutdown in 2007, and has been shut down for a number of years. It is not unrealistic to expect that there will be a higher frequency of unplanned maintenance events compared with a plant that is within design life and which has had an unbroken preventative maintenance program.
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