hydrocarbons go large clean energy selling success - Cryostar

N°11spring 2008SELLING SUCCESSOutstanding Cryostar employees recognizedCLEAN ENERGYGeopressure's great potential unleashedHYDROCARBONS GO LARGEBigger projects up demand

EDITORIALWe believe that Cryostar’s diversity is one of its greateststrengths. The diversity of our customers, markets, services,products and, vitally, our highly-trained staff, combines togive a solid basis for our growing operations around theglobe.SUMMARYTo celebrate this diversity, our main article in this issueof Cryostar Magazine reports back from our annual salesand service meetings. These are a fantastic opportunity togather Cryostar’s people from all around the world - Brazil,China, Singapore, UK, USA and of course France – to shareour experiences and take best practice forward.368Selling successClean energyGreen solutionThe Cryostar China team deserves a special mention due toits great success which resulted in orders of over €35 millionin 2007.As environmental issues and energy security head up theagenda, clean energy generation is creating considerableinterest. Two further articles address Cryostar’s importantcontribution to clean energy with geothermal and geopressureapplications, including a detailed technical report.Our diversity is just one ingredient helping Cryostar tofurther expand and enjoy double-digit growth. In 2007 weachieved a turnover of 188 million, increased our staff by 70new employees, and invested a further 10 million in offices,workshop and test facilities. These are the steps necessaryto ensure Cryostar remains at the forefront of technology,to better serve our customers, and to be innovative in allthat we do.We look forward to the growth and challenges 2008 hasto offer. The support and the diversity of our personnelrepresenting some 20 different nationalities will be key forthe future.910Eastern promiseHydrocarbons go largeDaniel MEYERPresident11NewsTraining2Spring 2008

SELLING SUCCESSSelling successCryostar’s specialist staff meet every year to share best practice and rewardimpressive performance.Every year, Cryostar hosts its sales and servicesstaff from around the globe for a key meeting atits headquarters in Hésingue, France. December2007 was no exception, with a successful eventthat helped to fine-tune Cryostar’s sales and servicestrategy, and outline objectives and actionsfor the year ahead. This article brings you someof the sessions’ highlights.Process Sales TeamThe annual session is the opportunity for 50 salesengineers, sales managers, project managers andthe sales technical support team (TSS) in chargeof sales and projects follow-up around LNG andair gas applications to gather and share theirexpertise.These fast growing industries, which continuallyimprove their processes and demand higher performances,are Cryostar’s core customers.Cryostar exports worldwide more than 90% ofits production and gives great consideration to requestsfrom its international customers. This hasdriven Cryostar’s growing commercial presenceon several continents. The cultural diversity of itsstaff also gives Cryostar a unique perspective inthe global market. Through its business centresand special trained agent networks, Cryostarunderstands local markets and internationalstandards enabling it to provide local solutions.It is important for Cryostar to follow the market’sevolution and to keep abreast of client’s new applicationsthat may need innovative solutions andadapted technical improvements, in all marketsegments.Each industry or production site is evolving in itsown right and Cryostar is always ready to providecustomized solutions to assist this growth.For example, in air gas applications, Cryostarhas witnessed the increase of production capacityof air separation units from a few hundreds oftonnes/hour to approximately 4000 tonnes/hour,in a few years. This is a result of new GTL (Gasto liquid) and CTL (Coal to liquid) applicationsused by clients.For Cryostar this means development of machinesadapted to these greater capacities. For example,the multistage pump VP (vertical pump) that canreach near to 1MW. Or the MCP pump (Monostage)with outlet flows above 5000 litres/min.Cryostar’s teams in China, USA and Europe haveworked on these local projects in tandem withCryostar in France, which develops and buildsthe machines.The same principle is used in the hydrocarbonmarket where the company’s clients, all renownedengineering companies, contact Cryostar’s localsales engineers for input concerning gas treatmentor ethylene production expanders. Examplesinclude the recent ethylene projects handled bySpring 2008 3

SELLING SUCCESSthe sales team in China or those handled by the teamin France for installations in the Middle East.The team says that the annual meeting is the besttime to analyse the results of its actions. “Our goalis then to find and adapt for each client worldwide,the right solutions to their requests, maintainingtechnical and commercial quality coherence. This isessential for our international customers’ completesatisfaction.”Cryostar supplies a large range of machines, eachadapted to different markets, needs and specialproject specifications. It is necessary to have coherentdevelopment and a modular concept of machinesresulting in standardised price levels.Distribution and Clean Energy TeamOne day of the Distribution and Clean Energy sessionwas dedicated to an original type of training.ARC Evolution, a specialized training companybased in Strasbourg, France, spent a full day withthe international sales team, focusing on teambuilding. This challenging, yet particularly rewardingand involving exercise took the form of a gamenamed “Gold of the Desert Kings”. In this simulationexercise, four teams of four to five people arecreated. The teams were international and made upof sales or project management representatives fromall Cryostar entities around the world (Singapore,China, Brazil, USA, UK and France).In the first part of the session, each of the teamswas given an objective along with an explanationof the rules. The organizers then let the teams maketheir own decisions under a strict schedule patternand observed the participants as they all tried toaccomplish their mission while competing with theother teams to finish first.The second part of the session involved a differentset of rules as teams then worked collaboratively toachieve a common goal they had set for themselvesat the start of the game.This scenario would be incomplete without mentioningCryostar’s LNG (natural gas) activities. It is inthis activity that the synergy is the most needed. Tounderstand market requirements and to find a welladaptedsolution and machines needs a sound understandingof the whole Cryostar product portfolio.For example, with the “Ecorel’S” system, installationof liquefying natural gas for on- or off-shore plantsor LNG vessels, uses machines developed for air gasapplications as well as machines specially developedfor compression and natural gas transferAll these development synergies used correctly explainCryostar’s market leading position worldwide.And the annual meeting allows all Cryostar’s teamsto gather and work even more closely together ondifferent projects and strategies to define the solutionsand machines required for future success.In addition to being enjoyable, crucial concepts werehighlighted as players committed themselves fullyto the exercise. Concepts like team work, decisionmaking under pressure, constructive criticism,listening skills, turning a challenging situation intoa win/win situation, etc… were largely put to thetest. The ultimate goal was to focus on these keycompetencies where sales and project managementpersonnel should make a difference in the field whendealing with our customers every day, everywhere.The Cryostar TrophiesOn the last Friday of the gathering, participantsalong with all Cryostar’s French employees wereinvited to a closing ceremony, which took place in amovie theatre in Mulhouse.Some 450 people, who heard presentations onsafety, quality, sales and market trends, the latestfinancial information and investment plans for4Spring 2008

SELLING SUCCESSService Team: Core topicsReactivity:Reactivity is one of the areas where the customers directlyjudge service. Due to its strong presence aroundthe world, supported by over 50 technicians, Cryostaris able to react quickly in performing maintenanceinside or on site with experienced and highly qualifiedpeople.2008, attended the event. But themain highlight of this ceremonywas the 2007 Trophies awards.Trophies representing Cryostar’score values, namely safety, innovation,taking up challenges,passion and generosity were presented to severalemployees with one overall winner, the Ecorel LNGon board reliquefaction project.The traditional Cryostar Christmas buffet-partywas a fitting finalé to these two weeks of intensiveand productive work and training sessions.“The annual service meeting involving personnelfrom all our locations is a great opportunity to betterunderstand the regional and various cultures and sothe real needs of the Customers around the world,”commented one participant from the services team.Service provision, maintenance contract:Cryostar provides various services, installation and operationadvice, commissioning, start-up, maintenanceadvice, training, and site audit.Cryostar also provides maintenance contracts, whichallow the Customer to concentrate on its core businesswhist Cryostar takes over the maintenance withthe warranty that work is done by highly experiencedpeople.Training Centre:Through the Training Centre, Cryostar providestraining for its entire range of machines and completesystems. Training is either in house or on site and isprovided by experienced and professional people withfocus on the customer’s real needs.Machine upgrades:Taking product safety and reliability seriously, staffimplement new technologies and material to Cryostar’smachines. For the installed base, various up-grades areavailable and can be implemented on request. In case ofa maintenance contracts these upgrades are suggestedsystematically.Implementation of the Customer Relationship Management:In a vision of growth and also to improve the relationshipsbetween Cryostar and its customers, staff haveimplemented a CRM (Customer relationship Management)programme.CRM is an interaction between thebusiness and its customers, and is provided by implementingsoftware, and a complete philosophy to offerthe best services to partners.Enlarged Service approach:Cryostar is ready and able to manage and provide allrequired levels of service to cover the entire installedbase by managing spare parts stock, providing necessaryup-grades, and offering suggestions for installationimprovement. Again such an approach will enablecustomers to focus on their core business while gettingthe best service and expertise from the specialists.Spring 2008 5

CLEAN ENERGYClean energyNatural gas pressure letdown stations are missing atrick to get free, clean energy, but Cryostar can help.This article introduces energy recovery in pressurelet down stations for natural gas with reference toprevious Cryostar Magazine issues. It discusses thedegree of heat conversion into electrical energy withradial inflow turbines, and also presents the innovativeturbine in the pipe solution for this application.Heat conversion into electricityNatural gas comes out of the ground at very highpressure, called Geo-pressure. This Geo-pressuremoves the gas in gas transit pipelines from the point ofproduction to the point of use. The frictional pressuredrop of the gas flowing in a pipeline is compensated atseveral compression stations along its length. At thepoint of use the transit pipeline pressure is reduced tolow pressure suitable for the local distribution pipingand the end users. Usually the gas pressure potentialenergy is wasted in pressure let down stations (PLD)as it is released through pressure reduction valves.Previous Cryostar’s Magazines have touched on thetheme of natural gas Geo-pressure energy recoveryin PLD stations with Cryostar radial inflow turbines.The recovered energy the process yields is consideredclean energy.During natural gas expansion in the pressure reductionstation, the gas cools. The typical temperature dropfor isenthalpic expansion in a valve is determined bythe Joule-Thomson (J-T) effect, and is typically some0.5°C per bar expansion. In the turbine with workextraction at nearly isentropic expansion the figureis around 1.5-2.0°C. The exact value depends on thegas composition and the pressure and temperaturelevels. As gas transportation specifications requiregas temperature at the outlet of the PLD stationabove 0°C (typically 5°C) to avoid hydrates and liquidsforming, the gas is preheated before expansion.Similar to the Geo-pressure energy, the preheatingenergy for the expansion in a valve is wasted. However,the higher preheating energy for the expansionin the turbine is recovered in the form of electricity.The energy conversion degree from heat to electricityfor the PLD with expansion turbine is typically in theorder of 65-75%. This includes all losses and componentefficiencies (boiler, heat recuperation, gearbox,generator, electric transformer, etc.) For economicconsideration only the energy conversion from the“additional” heat above the normally wasted preheatingenergy for the J-T valve expansion is taken intoaccount. This conversion is typically in the order of95-105%, depending on the gas pressure.Now some simplified examples of the heat conversion6Spring 2008

CLEAN ENERGYinto electricity in the PLD station with a Cryostarturbine:Case 1: In a combined heat and power (CHP) system,the exhaust and cooling water heat from genset (gasor diesel engine with electric generator and switchgear)is used for gas preheating. The genset primarilyconverts 40% of energy into electricity and 60% iswaste heat. When this waste heat is recuperated andconverted in the PLD turbine into electricity with70% conversion, the total primary energy conversionis 82%. The Geo-pressure energy is here consideredas free energy, as it would be otherwise destroyed inthe J-T valve. If we subtract in this calculation theheat necessary for the preheating for the expansion inthe J-T valve, then the “additional” primarily energyconversion factor will rise to about 100%, dependingon the gas pressure.Case 2: If the exhaust heat from a fuel cell is employedfor gas preheating and the fuel cell produces from theprimary energy 50% as electricity and 50% as wasteheat, the same calculation will lead to primary energyconversion of 85% respectively after the J-T valvepreheating subtraction to a value above 100%.Both cases show that around 100% of the “additional”fuel energy can be converted into electricity.If we consider that modern CCGT power stationshave fuel energy to electricity conversion at around50%, then we can say that the carbon dioxide emissionsfor electricity from PLD stations result fromhalf of this generation, or that 50% of this electricityis emission-free.In the pipelineThe task was to develop a simple centripetal turbine,which can be easily and rapidly integrated into existingpressure let down stations in parallel to thepressure reduction valves to recover the gas pressurepotential energy. Engineers envisaged a hermetic solutionwithout a shaft seal, and therefore they chosea high frequency generator with a permanent magnetrotor suspended by active magnetic bearings. Thisconfiguration without an oil lubricated turbo-gearboxand shaft bearings is nearly maintenance free.The turbo-expander with a 300-kWe high frequencygenerator is located in line in a length of a pipe. If apre-heater is needed upstream to the turbo-expander,it can also be executed in line. Integrating the turbineinto the gas piping in pressure let down stations insteadof in the pressure reduction valve is very easy– see the pictures below.With the hermetic turbo-expander/high frequencygenerator/active magnetic bearings solution the riskof gas leaks and process gas pollution by lubricationoil is eliminated.To facilitate intense generator cooling, the centripetal(radial inflow) impeller is located upstream of thehigh frequency generator. The generator housing isequipped with cooling ribs, which the entire coldgas flow passes after its nearly isentropic expansionwith work extraction. With this configuration no additionalexternal generator cooling is required.The turbine in a pipe can be employed as a throttlingdevice for any gas processes (air separation, naturalgas processing, organic Rankine cycle, Kalina cycle,etc.) instead of throttling valves and therefore itsmarket potential is huge.In the Spring 2004 Magazine, Cryostar presentedits two-stage oil lubricated turbine installation inSwitzerland together with the description of thePLD applications. And in the Spring 2006 Magazinethe company announced it had formed the CryostarLo-C Energy business segment, which includes thePLD applications. These magazines are availableonline at www.cryostar.com, along with furtherinformation about the Lo-C business segment. Thecompany welcomes any contacts and requisitionsregarding Cryostar Lo-C Energy.Spring 2008 7

GREEN SOLUTIONGreen solutionHarnessing geothermal energy is one way to meet European emissions targets, as this groundbreaking Frenchproject demonstrates.Cryostar has played a crucial role in providing equipment for a groundbreakingnew French geothermal energy project, which helps contribute toEuropean emissions targets.December 13th 2007 marked an important day for the geothermal plantproject in Soultz sous Forêts, France. One hundred people gathered to markthe symbolic completion of the plant’s installation. Engineers laid the turbogeneratorin place on its concrete slab, ready for connection to the turbine.Those present included the customer, Groupement Européen d’IntérêtEconomique Exploitation Minière de la Chaleur (GEIE), Electricité de Strasbourg,and government representatives. These onlookers expressed not onlytheir appreciation for the project’s timely completion, but also highlightedthe importance of geothermal energy for curbing greenhouse gas emissions.The Soultz-sous-Forêts project aims is to demonstrate the technical andeconomical feasibility of producing electricity using a new type of geothermalapplication, known as the Enhanced Geothermal System (EGS). Theprinciple is to extract heat from the ground via water circulation throughfractures in rocks deep underground (between 3 000 and 6 000 m). Thesefractures are hydraulically stimulated to allow for a natural heat exchangerwith sufficient water temperature and flow capacity. Hot water recoveredfrom underground is the heat source for an Organic Rankine Cycle (ORC)integrating a Cryostar turbine. After years of underground research to betterunderstand what happens at depths of 5000m, the project opted for a8Spring 2008

GREEN SOLUTIONsurface installation. GEIE wanted a high-performance power plant which was also efficient and reliable. Cryostar’sbid made in association with the Italian company Turboden was selected in December 2006, as it offered thebest fit with GEIE’s requirements. Isobutane expansion through a Cryostar radial turbine generates power, usingtechnology successfully applied on all Cryostar’s rotating machines and optimized for this application. Maximumgenerated power, depending on the hot and cold sources’ temperatures, is up to 2.5 MW brutto.With the components delivered on schedule, the next step is to finalize the plant’s installation and commissioning.All being well, the project will see its first totally CO2 free kilowatts hours generated in April 2008.The Soultz project is an important milestone for geothermal energy development. This technology is now clearlyidentified in Europe as a means to reach the goal of 20% CO2 emissions reduction by 2020. European potential ishuge, and is even bigger thanks to the EGS technology. With the success of the Soultz project, Cryostar has shownthat its expertise in expansion turbines makes it a major geothermal energy player.Cryostar also supplies turbines for clean and efficient energy generation, using geothermal energy, waste heat orgeopressure through the Lo-C (low carbon) business line. This is the future of energy, and Cryostar is part of it.Eastern promiseCryostar China is now firmly established, and is enjoying considerable success in the region.The Cryostar China team’s many successes in 2007 lead to its receipt of the Cryostar Trophy for Excellence inPerformance.Now staffed by 15 people including dedicated sales engineers for process pumps, distribution pumps, turbines forindustrial gas and the hydrocarbon business, 2007 has been an eventful year for Cryostar China.Cryostar China covers the full range of Cryostar products, from commissioning to service as well as repairs to LNGshipboard compressors, vertical sealess pumps (VS), turbo expander compressors (TC) and vertical multi-stagepumps (VP) repair. Spare parts are in stock for most of the typical pumps as well as for various VP pumps andturbines.Cryostar China’s 2007 highlights include Chinese pump sales hitting an all-time high in terms of quantity and turnover,with more than 350 pumps sold. The figure includes many big VP pumps designed for high flow, high pressureto match the growing size of ASUs in China. Large turbine sales reached 42 units including nine units of big framesize TC 300 machine, six units of turbo-generator (TG 300 & TG 200), six units of liquid turbo-generator (LTG90) plus many TC 200 and 2TC120 units.Last year also saw Cryostar win a bid to supply China’s largest ASU project called Datang with 13 VP pumps andsix MCP (modular centrifugal pumps) in one single order. The company was also chosen to supply the first VPpump equipped with a dual gas seal for liquid carbon monoxide applications. High safety standards and reliabilitywere the decisive factor behind Cryostar’s pump being selected for this project.Cryostar also won two ethylene plant projects featuring active magnetic bearing technology instead of traditionaloil lubricating bearing turbines. The company’s high-tech design product gained the customer’s confidence andsecured the deal.After a very successful 2007, many challenges still lie ahead in 2008 and beyond for Cryostar China. The teamis determined to build on its achievements with further improvements, to contribute to Cryostar’s success in theregion.Spring 2008 9

HYDROCARBONS GO LARGEHydrocarbons go largeHydrocarbon projects are getting bigger and more numerous, creating demand for equipment manufacturers.Plant Type machine Speed Nominal Flow PowerAhvaz&MasharIran F1170/71QAPCOQatar F4518DolphinQatar F4350/51ARPCIran F21289th Olefin complexIran F1574Ormen LangeNorWay2*2 TC400/90 9300 rpm 216 Tonnes/h 4*2000 Kw2 MTC 204/90 35400 rpm 5 Tonnes/h 2* 400 KwMTC 500/200 12600 rpm 400 Tonnes/h 4*6600 KwMTC 204/90 36000 rpm 14 Tonnes/h 350 Kw2*MTC 300/70 23200 rpm 28 Tonnes/h 2* 930 Kw2*MTC 600/240 4800 rpm 922 Tonnes/h 2*3400KwProven hydrocarbon performanceLast year saw a boom in hydrocarbon turbine start-ups facilitated by Cryostar: a total of 15 machines, representingcumulative flow of over 4000 tons per hour of various fluids began operation, with an impressive combinedtotal working power of 44 000 kw/h.The increasing technical complexity of hydrocarbon plants, combined with ever more elaborate environmentand control systems has called upon the skills of a multitude of Cryostar specialists throughout 2007. Thesehighly skilled technicians (in the field of electricity, automation, electro mechanics and instrumentation) havebrought their know-how to the company’s customers in Iran, Qatar and Norway, for their turbines’ start-upsand preparation.Some start-ups, those on enormous sites with huge economic importance, can take a year or more. This is easy tounderstand considering the financial and human investment involved on this type of site: € 7 billion was investedon the Norwegian Norske Hydro Project and no less than 100 000 people worked on the Dolphin Project inQatar.These start-ups, once operational in real conditions, have enabled Cryostar to prove the strength the performanceof its machines conceived in Hésingue, France. Cryostar expects that these successful operations will lead to agrowing demand for this type of application in a world where energy requirements continue to increase.Meanwhile, new challenges lie ahead for 2008: over 20 turbines are scheduled for start-up, with one major goal:meeting customers’ requirements in terms of availability, timely delivery and mechanical reliability.10Spring 2008

NEWSNewsCryostar USA upgrades premisesCryostar USA is set to relocate its West Coast facility in the US,a move that will offer considerable benefits to both staff and customers.Scheduled for April 2008, the move will see Cryostar installedat its improved base within the same city of Santa Fe Springs.The company plans to accommodate growth and further improvecustomer service at new facility, which boasts more than 4,000square feet of additional workshop space plus a larger yard areato incorporate an upgraded liquid nitrogen test facility.All accounting, engineering, production and inventory operationswill be moved, plus the test facility, which incorporates aliquid nitrogen tank.“The effort will be rewarded, since the move will position CryostarUSA for continued growth and efficiency as business in theNorth America region continues to move forward,” according toCryostar’s Business Manager, USA, Mark Sutton.Versatile gas injection revealedGastech 2008 in Bangkok saw Cryostar release details of its newenergy-saving solution for LNG carriers fitted with direct gas injectionslow diesel (ME-GI) engines.The latest arrangement consists of a high-pressure liquid pump- Cryostar’s HPP, which feeds condensate from a reliquefactionunit to the engines as fuel gas at 250 bar. Remaining condensateis returned safely to the cargo tanks.This solution, patented by Cryostar, provides operational savingsof up to $1 million per year compared with a deck-mounted reciprocatinggas compressor. The vessel’s versatility is also vastlyimproved by the ability to preserve the cargo for long periodswhen necessary.The HPP belongs to the established family of SDPD and MRPreciprocating liquid pumps, which form part of Cryostar’s 3500unit installed base.New facility address:13117 Meyer RoadSanta Fe SpringsCA 90670Cryostar Training Centre CatalogueScheduled sessions performed at Cryostar Training Centre, from May to December 2008:May June July Aug. Sept. Oct. Nov. Dec.Reciprocating pumps -Industrial GasesReciprocating pumps -Process Application24-26 June24-26 JuneCentrifugal pumps -Industrial GasesCentrifugal pumps -Process Application8-10 July8-10 JulyTurbo expander Oil breakloaded - ECOTurbo expander Magneticbearing - MTC23-25 Sept.20-23 May 21-24 Oct.Other courses O N R E Q U E S TSpecific inquiry O N R E Q U E S TSpring 2008 11

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