Geodyn Solution: 250 MW Power Generation Project for Puerto Rico

Executive Summary

Geodyn Solution proposes a 250 MW power generation project for Puerto Rico, featuring 6 Geodyn 30 MW natural gas turbines, one 37.5 MW steam turbine, and an Organic Rankine Cycle (ORC) system. Priced at $0.19 per kWh, the project has a total CapEx of $500 million, including $68 million in contingent fees, and an OpEx of $24 million annually. It generates a gross profit of $308.5 million per year, achieving payback in approximately 1.6 years. The initiative creates 175 jobs, requires 25 acres, and incorporates carbon sequestration for a sustainable 12-year return.

Project Overview

Objective: Deliver 250 MW of efficient, reliable power to Puerto Rico using Geodyn’s proprietary turbine technology and waste heat recovery systems.
Components:

    • 6 Geodyn 30 MW Natural Gas Turbines: 180 MW total.
    • 1 Steam Turbine: 37.5 MW, utilizing exhaust heat from gas turbines.
    • Organic Rankine Cycle (ORC) System: 32.5 MW, recovering additional waste heat.

Location: Distributed sites across Puerto Rico, optimized for grid connectivity.
Timeline: Full operation by March 2026 (12 months from contract signing).
Land Requirement: Approximately 25 acres (4-5 acres per turbine unit, 5 acres for steam/ORC, plus buffers).

Technical Specifications

1. Geodyn 30 MW Natural Gas Turbines (180 MW)

    • Output: 30 MW per unit, 6 units total.
    • Efficiency: 37% simple cycle; 55% combined cycle with steam/ORC integration.
    • Fuel: Natural gas (primary), with flexibility for LPG/distillate backup.

2. Steam Turbine (37.5 MW)

    • Output: 37.5 MW from gas turbine exhaust heat.

3. ORC System (32.5 MW)

    • Output: 32.5 MW from low-grade waste heat recovery, scaled to match 250 MW total capacity.

Total Capacity: 180 MW (gas) + 37.5 MW (steam) + 32.5 MW (ORC) = 250 MW

Financial Analysis

Capital Expenditure (CapEx)

  • Geodyn 30 MW Turbines: $1,300/kW × 180,000 kW = $234,000,000
  • Steam Turbine: $1,200/kW × 37,500 kW = $45,000,000
  • ORC System: $1,500/kW × 32,500 kW = $48,750,000
  • Installation and Infrastructure: $104,250,000 (adjusted to reach total CapEx of $500 million).
  • Contingent Fees: $68,000,000 (covering unexpected costs, delays, or regulatory hurdles).
  • Total CapEx: $234,000,000 + $45,000,000 + $48,750,000 + $104,250,000 + $68,000,000 = $500,000,000

Operational Expenditure (OpEx)

  • Fuel Costs: $6/MMBtu natural gas, 55% efficiency, 7,000 hours/year, for 250 MW = $17,000,000
  • Maintenance: $0.01/kWh × 250 MW × 7,000 hours = $17,500,000
  • Labor: 25 staff × $80,000/year = $2,000,000
  • Total OpEx: $24,000,000/year

Revenue

  • Electricity Sales: 250 MW × 7,000 hours × $0.19/kWh = $332,500,000/year
  • Gross Profit: $332,500,000 (revenue) $24,000,000 (OpEx) = $308,500,000/year

Return on Investment (ROI)

  • Initial Investment: $500,000,000 (CapEx).
  • Annual Gross Profit: $308,500,000 (revenue minus OpEx, before taxes/depreciation).
  • Payback Period: $500,000,000 ÷ $308,500,000 = 1.62 years (approximately 19.5 months).
  • Annual ROI: ($308,500,000 ÷ $500,000,000) × 100 = 61.7% per year.

The payback period remains 1.62 years, consistent with the $500 million CapEx and $308.5 million annual gross profit, offering strong profitability.

12-Year Return with Carbon Sequestration

  • Cumulative Gross Profit (12 Years): $308,500,000/year × 12 = $3,702,000,000
  • Carbon Sequestration Addition: CO2 capture at $50/ton, targeting 50% of emissions (0.7 million tons CO2/year × 0.5 = 350,000 tons/year for 250 MW).
  • Annual Capture Cost: 350,000 tons × $50 = $17,500,000/year
  • Revenue from Carbon Credits: 350,000 tons × $40/ton = $14,000,000/year
  • Net Sequestration Cost: $17,500,000 $14,000,000 = $3,500,000/year
  • Adjusted Annual Profit: $308,500,000 $3,500,000 = $305,000,000/year
  • 12-Year Adjusted Profit: $305,000,000 × 12 = $3,660,000,000
  • Total ROI Over 12 Years: ($3,660,000,000 $500,000,000) ÷ $500,000,000 = 632% (or 52.7% annualized).

Economic and Environmental Impacts

Job Creation

  • Construction: 100 temporary jobs (12 months).
  • Operations: 25 permanent jobs.
  • Indirect: 50 jobs (supply chain, services).
  • Total: 175 jobs.

Land Use

  • Requirement: 25 acres (6 turbines at 4-5 acres each, 5 acres for steam/ORC, plus access roads).
  • Mitigation: Use brownfield or industrial sites to minimize ecological disruption.

Environmental Effect

  • Baseline Emissions: 250 MW × 7,000 hours × 0.4 tons CO2/MWh = 700,000 tons CO2/year.
  • With Sequestration: 50% reduction = 350,000 tons CO2/year emitted, 40-50% better than diesel (0.9 tons/MWh).
  • Additional Benefits: Reduced particulates/NOx; ORC enhances efficiency, lowering fuel use.

Implementation Plan

1. Phase 1 (Months 1-3): Site selection (25 acres), permitting, environmental studies.
2. Phase 2 (Months 4-6): Manufacture and procure Geodyn turbines, ORC, and equipment.
3. Phase 3 (Months 7-11): Install units across sites.
4. Phase 4 (Month 12): Commissioning, 250 MW online by March 2026.

Risk Mitigation

  • Fuel Supply: Long-term natural gas contracts; turbine fuel flexibility as backup.
  • Land Acquisition: Early engagement with local authorities for zoning.
  • Cost Overruns: $68 million contingent fees cover delays or unforeseen expenses.
  • Environmental Compliance: Carbon sequestration ensures regulatory alignment.

Conclusion

Geodyn Solution’s 250 MW project, powered by 6 of our 30 MW turbines and a 37.5 MW steam turbine, offers a $500 million investment with a 19.5-month payback and $3.66 billion profit over 12 years with carbon sequestration. Requiring 25 acres, it creates 175 jobs and delivers sustainable power at $0.19/kWh, enhancing Puerto Rico’s energy resilience.
PDF DOWNLOAD
You are currently viewing Geodyn Solution: 250 MW Power Generation Project for Puerto Rico

Geodyn Solution: 250 MW Power Generation Project for Puerto Rico