Plant Lifecycle Management

Fortum Thermal Production and Power Solutions

Panndagarna 2016, Ulla McNiven
12 April 2016, Karlstad

Contents
Fortum in a nutshell
Value Creation with Plant Lifecycle Management
Plant Lifecycle Management Services and Example Cases
Asset Lifecycle Management Strategy at the plants
Tools and Methods for implementing the Strategy

Fortum in brief
Some 8,000 energy
professionals

Forerunner in
clean energy

Nordic and Baltic

countries, Russia,
Poland

64% of power
generation CO2-free
- in EU 97%

Core competences in
hydro and nuclear
power, combined heat
and power production
and in operating on
energy markets
Figures: 2015

Fortum Forerunner in clean energy

Energy-related
products and expert
services
1.3 million electricity
sales customers

Success through a shared perspective in thermal solutions:

Power Solutions/Fortums expert services in brief
Fortum has extensive references in commissioning, operating,
maintaining and upgrading thermal power plants in European and
Asian energy markets
Core competence in thermal, hydro and nuclear power
Built on Fortums knowledge and history as an energy producer
Over 300 employees delivering high quality expert services
Experience from projects in over 20 different countries

Services to improve technical and economic performance

of new and existing production capacity in

Bio-energy
Energy from waste
Combined cycle
Gas, coal and peat fired power plants

Expert references cover hundreds of customers globally

Co-operation with various partners and networks
Combining our top technical know-how with an economic view
enables us to identify opportunities and turn them into measurable
results
Independence of equipment suppliers
5

Value Creation with Plant Lifecycle Management

Maximum productivity during the lifecycle
Benefit
1

Safety managed risks

Environment

Benefit
2

Benefit
3

Benefit
4

Benefit
5

Better availability lower unavailability costs

Savings optimised action plans

Potential for value added to be assessed

taking into account:

Unexpected failures

Unplanned corrective maintenance

Availability degradation

Investment costs

Long-term planning

Systematic approach

Energy efficiency

Risks

Knowing the life of the main components allows

scheduling of refurbishments and investments to
be optimised, improving safety and productivity

Predictability possibility to better utilise condition data

The purpose of asset lifecycle management:

To optimise the resources invested in assets to
maximise the revenues during the asset lifetime

Contents
Fortum in a nutshell
Value Creation with Plant Lifecycle Management
Plant Lifecycle Management Services and Example Cases
Asset Lifecycle Management Strategy at the plants
Tools and Methods for implementing the Strategy

Lifecycle Management built on expertise

Boiler

Combustion,
burners

Turbine

Generator

Other rotating
machinery

Transformers

Automation,
control and
safety
devices

Setting of objectives, collection of initial information and data

Analysis of component criticality and planning of inspections and maintenance actions

Inspections and measurements, analysis of the results, correct timing for action and investment plans, also
follow-up and necessary updates

Asset Lifecycle Management, Fortum practices

Set-up Integrated
Management System
Set-up Maintenance
Management (Maximo)
Set-up other ICT: TOPi ,
etc.
Design Reviews
Document management

Training
Fuels, combustion
Fingerprint measurement
O&M Contract
O&M Support Contract
Remote monitoring
Emission control
Overhaul planning

Set-up and start

Operation and
Maintenance

Design and
Design Reviews
Investments

Set-up risk management

Feasibility studies
Criticality analysis
Lifetime analysis and
long-term planning
Decommisioning
Mothballing
Demolition

Operation and
Maintenance
Performance monitoring
Maintenance and
condition monitoring for
main components
Audits, reviews, cPIP
Refurbishment
Upgrading
Reinvestments

Optimize lifetime
(Optimize
actions)

Risk-based Asset Lifecycle Management

Implementing RBIM and RBLM
Defined and acceptable risk levels in relation to:
Business/production/operation/availability

5-25
years

25-100
years

Integrity related RBI:

Scenarios (structural damage)

Failure probability & consequences

> 100
years

MTBF

(or)

Examples of likelihood scales

Safety, Health, Environment

10-3
to
10-2

1-5
years

10-4
to
10-3

10-5
to
10-4

<10-5

PoF
annual

(1)

In a small population*, one or more

failures can be expected annually.

(2)

Failure has occurred several times

a year in location.

(1)

In a large population**, one or

more failures can be expected
annually.

(2)

Failure has occurred several times

a year in operating company.

(1)

Several failures may occur during

the life of the installation for a
system comprising of a small
number of components

(2)

Failure has occurred in operating

company.

(1)

Several failures may occur during

the life of the installation for a
system comprising of a large
number of components

(2)

Failure has occurred in industry.

Very
probable

>10-2

Probable

Possible

Unlikely

(1)

Failure is not expected.

(2)

Failure has not occurred in

industry.

Very
unlikely

Qualitative

Very high risk

High risk

Likelihood

<1
year

(or)

Optimisation of O&M and Asset Management

Description

Notes:
*
Small population = 20 to 50 components.
** Large population = More than 50 components.

Medium risk

Low risk

Very Low,
(negligible risk)

Impact (consequences)

Cat.

Health effects

Warning issued
No effect

Warning issued
Possible impact

Temporary
health problems,
curable

Limited impact
on public health,
threat of chronic
diseases

Serious impact
on public health,
life threatening
illness

Safety effects

No aid needed
Work disruption

First aid needed

No work
disability

Temporary work
disability

Permanent work
disability

Fatalities

On-site
damage

Off-site damage
Long term effect

1-10 M

>10 M

Off site

Society threat

Company issue

Political issue

Small community

Large
community

(or)

Assessed risk
Risk-based ranking of criticality and planning

for cost-effective inspections and maintenance

Planning for sustainability

(or)

Environment

Negligible impact

Impact (e.g. spill)

contained

Minor impact
(e.g. spill)
(or)

Business ()

<10k

10-100 k

0.1-1 M

(or)

Security

None

On-site (Local)

On-site
(General)
(or)

Image Loss

None

Minor

Bad publicity

(or)

Public disruption

RBI risk-based inspections

RBIM risk-based inspections and management
RBLM risk-based life management

10

None

Negligible

Minor

Examples of impact scales

Source: Risk Based Inspection Framework (RBIF)

Availability & Reliability Management

Combined package including separate module services such as:
ReMaint: Criticality Analysis,
Maintenance and Spare parts
p
Optimisation, FMEA/RCM
M Analysis

RAM Analysis and

investment decision
support
sup

CMMS Audit and

Population

KPIs monitoring and

reporting: Feedback
Analysis
Disturbance reporting
Problem Solving

Support: Training

- Continuously improve your plants

performance
11

Joensuu Power Plant, Finland, an example

Ownership and personnel
Ownership
Operation by
Maintenance by
Staff
o Operation
o Maintenance
o Asset Management etc.

100 % Fortum
Fortum
Fortum
54
29
22
3

Pyrolysis Oil
Production
started 2013

Production

12

Heat production capacity

Net electricity production capacity
o At CHP operation mode
o At Condensing operation mode

130 MW

Production units at the plant

Power plant

HOB

Start-up year
Fuel capacity (MW)
Main fuel(s)
Yearly operation hours (h)
Boiler manufacturer
Boiler type

1986
200
Peat/ Wood
7600
Ahlstrm
BFB

2009
35
Peat/ Wood
~4000
MW Power
BFB

50 MW
70 MW

Joensuu Investment planning &

Lifetime Management project

Technology
and
process

Investments
and
return

Efficiency
and
availability

Human
factors

Safety and
risks

Legistlations
and
regulations

Environmental
impacts

Planning
Planning:
1. Select systems and scope for lifetime assessment
2. Collect initial data and interview, utilize annual overhauls (e.g. periodic inspections)
3. Prepare preliminary inspection plan and budget
Implementation
Implementation:
4. Plan detailed inspections and allocate resources
5. Prepare and carry out inspection
5. Analyze inspection results
6. Recommend immediate improvements
7. Establish lifetime assessment for critical parts, list of
necessary long term actions and investment estimates
13

A practical example at Joensuu Power Plant, Finland 2014-2015

Life assessment
Project
Collect existing data,
inspection results, reports,
experience, condition
reports, maintenance and
operational information

What was found

Creep damage in the main steam line

(material X20CrMoV121)
Hanger improvements needed
Internal layer thicknesses affect life of a
superheater
RBI Risk assessment needed

Plan the needed inspections

and measurements

Additional life for the main

components assessed: 100 000
hours
Timing of new investments
taking into account the life of
the existing equipment
Continuous safety
improvement

Implement inspections,
measurements, assessments

Timing of the correct

investments -> benefits
already on the short-term

Analyze results
Plan and schedule actions,
update earlier plans and
information in systems

Risk assessments utilized

14

More results

Possible safety risk, significant

unavailability risk eliminated
(over 220 000 operation hours)

Some details in the Joensuu Lifetime Management project

Samples examined to support
Creep damage in the main
steam pipeline found on time decision making

Repair planned and carried

out during the outage

Work supported by laboratory studies

Timing of superheater refurbishment
supported by life assessment of tube
samples
Inside layer thickness, temperature
follow-up etc.

Important results

No safety hazards

Unavailability costs avoided

Optimum timing for investments

Flue gas cleaning and

heat recovery / flue gas
condenser plant

15

Case 2: Eskilstuna Project, boiler plant refurbishment

Background

Scope

Eskilstuna Energi och Milj AB

(EEM) aims to extend the
lifetime of the CFB boiler

Modernization of the boiler and

auxiliary systems including
renewal of

Turn-key project

CFB boiler cyclones

Public procurement tendering

process

Start-up/support burners (2 pcs)

with an oil pumping unit;
possibility to bio-diesel firing

Time schedule

Fuel day silo bottom and the

hydraulic system

Site work 1 April 1 July

2016

Flue gas recirculation fan and

ducts (partly)

Plant: 110 MW Biofuel CHP

57dh MW Biofuel CFB
(in this project)

Bottom ash removal system incl.

a new ash building
Soot blowers (6 pcs) for district
heating ECO
Extension of the SNCR -system

16

All installation work is included

Outcome of the Eskilstuna Project

Emission reduction

Production secured

Extension of the existing SNCR

system to fulfill the required
emission limits

Safe and reliable production

secured

Availability improvements

Life extension

The goal: life of the 30 years old

boiler plant could be extended by 20
years

An example/ a rough illustration: renewal of the bottom ash removal system

Preliminary
Preliminary

17

Contents
Fortum in a nutshell
Value Creation with Plant Lifecycle Management
Plant Lifecycle Management Services and Example Cases
Asset Lifecycle Management Strategy at the plants
Tools and Methods for implementing the Strategy

18

Asset Management Strategy

Management system includes policies

Continuous improvement

Safety

Development of assets, upgrading

Environment

Development of the management

system

Legislation and regulations

Resources
Organisation
Decision making criteria

In Power Generation
Asset Lifecycle Management

Long-term objectives, sustainable

outcomes, stakeholder requirements

Asset Management system

- Data management
- Performance follow-up
- Condition report
- Long-term plans & other plans

19

Asset Lifecycle Management

-- Asset Integrity
Organizational strategic goals
& stakeholder expectations

Corporate/
Org
Organization
Management

Investment planning,
return on capital employed,
risk & sustainability

System performance,
cost & risk management

Optimize
life cycle
activities

Create
C
/Acquire
/Ac

Manage Asset Portfolio

tffolio

Manage Asset Systems

Manage
g
Assets
As ts

Utilize

Maintain

Modified from PAS 55-1: 2008 Asset management Part 1, Specification for the optimized management of physical assets

20

Renew
/Dispose

TOPGen
Fortum TOPGen O&M concept is a company specific way to set up O&M organization, management
systems and selected IT tools at power plants and to operate and maintain power plants
Recruitment
Training
Continuous updating
of knowhow
Multi-skilled
Rewarding

Professional
and motivated
people
Leadership

Structured
operating
processes

document and

Frame 6FA

Appendix 2

Auxiliaries:
Paux tf1/tf2
Paux fwp1/fwp2
Paux SBfan / others

120 kV:
Pnet1, Pnet2
cos net1, cos net2
Unet, f

Ambient air:
T, p, RH

Pgt
cos gt
Ugt
p, q, T

Injection water
25 bar Chinoin

p, q, T

T, p, q

GT exhaust / HRSG inlet:

Tfg, NOx, O2

ST inlet:
T, p

q, T
HRSG HP steam:
T

T, p

Pst
cos st
Ust

T, p
Extraction: T, p

6.1 bar Chinoin

T,p,q

T
HRSG LP steam:
T

6.1 bar Gyoki

SB steam:
T, p

p
T,p,q

Combustion
air

Pfan

T, q
Fuel
oil

T, q

T, p
Flue gas:
T
Dust
CO, NO2, SO2

T,p,q
Natural
gas

q, T

SB feedwater:
T, p, q

2.5 bar Chinoin

T,p,q

ST DH exchangers
DH condensate:
T, p, q

Use of advanced
tools and techniques
Fortum wide support
and expertise

cPIP

Makeup water: q, T

HRSG LP feedwater:
T, p, q

Hot water boilers

HRSG HP feedwater:
T, p, q

T, p
Main cooling tower

q (deluge water)

HRSG DH water
T, p, q

Modified
1
2

27.7.01/
IPU

Designed

10

Checked

11

Approved

20.4.01

T = temperature
p = pressure
q = flow rate
P = power
U = voltage
cos = power factor

IPU

Hotwater inlet:
T, p, q

Generator output
Process steam
District heating

Fortum Service Oy
Performance Services

Guarantee test points, EPC contract

Fuel input

TOPi process Solvo

information and process
optimisation
modelling/
system
simulator

TOPi
data
Logbook management

electronic
asset and
maintenance log book
management

Apros simulator Miriam RAM Studio

reliability modelling
and simulation
Natural gas

ProjectWise
Maximo

Thermodynamics, hydrodynamics (water steam

process), Water chemistry,
Fortum wide support e.g.
purchasing

Fuel oil

Integrated (Site)
Management System (IMS)
- How to work at site
Continuous improvement
IT tools:

Combustion
Fluid
Dynamics
CFD modelling
tool

Value creation and

predictable business
performance
Safety
Availability
Costs
Fuel efficiency
Asset integrity

21

Make your power plant efficient!

Optimise
refurbishment
costs
Optimise
operation &
maintenance and
management costs
Minimise
unavailability costs

Fuel and emissions

cost savings through
optimum efficiencies

22

Refurbishments

Unavailability costs

Administration
Maintenance

Plant investment

Operation
Fuels

Case
CHP-plant
60 MWe
90 MWth
6000 h/a
=>1060 GWhfuel
20 /MWhfuel
1 %- Fuel saving
10600 MWhfuel
=> 212 000 /a
2 %- Fuel saving
21200 MWhfuel
=> 424 000 /a

Basis for successful Plant Lifecycle Management, Fortum

Construction &
Commissioning
Preplanning and requirements

Documents
Meta-data
Coding system
Formats
Archive and method of
delivery
Coding of the systems and
equipments

Planning

Main level hierarchy

Purchasing
Acceptance
Cost control
Project documentation
Criticality classification for
main components
O&M strategy

1 - 2 years

1 - 2 years

Equipment level hierarchy

Commissioning logbook

Deviations

Failures

Preventive
maintenance
Acceptance of O&M
documents
Criticality classification for all
components
Preventive maintenance
programmes
Spare part management

1 - 2 years

Operational lifetime

O&M budgeting (3 year

interval)
Strategy monitoring
Long term planning (5 10
years)
Preventive maintenance

Actions

Programmes

Analysis

Failure repairs

Yearly overhauls
O&M data monitoring
Benchmarking

30 - 50 years

23

Fortum approaches for condition monitoring in lifetime

management
General services for production plants / Continuous Condition
management
Process thermal performance and energy efficiency monitoring
IT-systems, process model, analysis and remote support
Mechanical equipment condition management
Vibration monitoring for rotating machines
Structural mechanics analysis and studies
Electrical equipment condition management
Generators, high voltage motors, transformers
Water and environmental chemistry management

In addition for power plants / Overhaul and projects

Combustion and boiler condition and lifetime management
Combustion modelling (CFD) for all boiler types and Low-NOx-burners
Combustion, fouling and corrosion monitoring including systems
Boiler and main steam line inspection planning and long-term plans
Turbine and generator condition review, inspection, overhaul and
modernisation
Including replacement of parts as well as control and protection systems

24

Maintenance development process, ReMaint

Project
preparations
ns

Objectives and
scope
Collection and
evaluation of
plant and
equipment data
and documentation

Classification
of equipment
according to
ReMaint
concept

Maintenance
Development
and
Optimization

Maintenance
nce
Strategy

Criticalityy
Analysis

Definition of
equipment
maintenance
strategy for
each CA class
according to the
production plan
of the PP

Evaluation of current
Maintenance activities
Optimization of Maintenance
programs and activities by
e.g. FMEA

KPIs

Comparison of present and

optimized Maintenance
programs

Estimation of
savings

Evaluation of saving
potentials

Resources

Implementation

Implementation
of new
optimized
Maintenance
programs

Training

New
processes
and
programs

Continuous improvement
process

25

Case CHP plant ReMaint

Maintenance development
Criticality Analysis based on risk assessments
Waste-to-Energy plant 160 MWTH

FMECA*) and RCM**) analysis for the most critical

system(s)
Fuel handling system

Optimization of Preventive Maintenance (PM)

programs and critical spare parts

Benefits for the Power Plant business

Not anymore disturbances and unplanned
shutdowns due to critical components (before
c.a. 190 h / 11 y)
Systematic, comprehensive and well-timed PM
programs for critical components
Outsourcing of routine maintenance, for example
bearings lubrication
Easy mobilization of critical spare parts, placed in
site storage or near in spare pool

26

*) FMECA = Failure Mode, Effect and Criticality Analysis

**) RCM = Reliability Centered Maintenance

Systematic follow-up, performance indicators

Performance: Performance indicators (KPIs),
TOPi (process performance), CMMS
Management system: cPIP auditing, reviews
and internal audits at planned intervals
Predetermined condition reports at planned
intervals, scheduled long-term plans

27

Audit, Analyse and Develop the use of CMMS

CMMS (computerized maintenance management)
in the asset lifecycle management
Long-term planning
Investment projects
Daily operation and maintenance management

and reports
Condition reports
Analysis, planning and budgeting support

28

Tools and methods for development

Summary
Tools and methods
Case Fortum

Integrated
management system

CFD modelling tools

Solvo process
modelling/simulator

ProjectWise
document and
data management

Assessment and auditing processes,

Safari and cPIP
Prioritization methods Criticality
analysis (CA), RBI, analysis of production
failures, condition and life cycle
assessment

Reliability modelling
and simulation

Availability
follow-up tool

Elmas
Event Logic Modeling
and Analysis Software

Analysis methods Failure Mode and

Effect Analysis (FMEA), Hazard and
Operability Study (HAZOP),
Cause & Effect Analysis and Root
Cause Analysis, Problem Solving
Integrated Management Systems (IMS),
TOPGen, Maintenance Handbook,
ReMaint
Applications, Miriam RAM Studio,
Availability follow-up tool, Elmas

29

Creating measurable value

Asset productivity and lifecycle profits developed by:
Improving the performance and productivity of existing
power plants
Availability, energy efficiency, O & M costs
development and the productivity of investments
Managing risks and the condition of main components,
such as turbine, generator, boiler, etc.
Utilizing advanced analysis and management tools
Performing successful O & M introductions and start of
the commercial operation for new power plants
Improving both site-level O & M and asset productivity
processes

30

Frame 6FA

Natural gas

p, q, T

Injection water
25 bar Chinoin

p, q, T

T, p, q

GT exhaust / HRSG inlet:

Tfg, NOx, O2

Fuel oil

Appendix 2

Auxiliaries:
Paux tf1/tf2
Paux fwp1/fwp2
Paux SBfan / others

120 kV:
Pnet1, Pnet2
cos net1, cos net2
Unet, f

Ambient air:
T, p, RH

Pgt
cos gt
Ugt

ST inlet:
T, p

q, T
HRSG HP steam:
T

T, p

Pst
cos st
Ust

T, p
Extraction: T, p

T
HRSG LP steam:
T

6.1 bar Chinoin

T,p,q

6.1 bar Gyoki

SB steam:
T, p

p
T,p,q

Combustion
air

Pfan

T, q
Fuel
oil

T, q

T,p,q
Natural
gas

T, p
Flue gas:
T
Dust
CO, NO2, SO2

q, T

SB feedwater:
T, p, q

2.5 bar Chinoin

T,p,q

ST DH exchangers
DH condensate:
T, p, q

Makeup water: q, T

HRSG LP feedwater:
T, p, q

Hot water boilers

HRSG HP feedwater:
T, p, q

T, p
Main cooling tower

q (deluge water)

HRSG DH water
T, p, q

Modified
1
2

27.7.01/
IPU

Designed

10

Checked

11

Approved

20.4.01

T = temperature
p = pressure
q = flow rate
P = power
U = voltage
cos = power factor

IPU

Hotwater inlet:
T, p, q

Generator output
Process steam
District heating

Fortum Service Oy
Performance Services

Guarantee test points, EPC contract

Fuel input

Maximo
asset and maintenance
management

Transition towards Solar Economy is ongoing

31

Thank you!

[email protected]
Tel. +358 50 4545400
32