Agl Energy Limited · ASX:AGL
Agl Energy — Technical Presentation (October 2018)
32 slides from Agl Energy's technical presentation, Oct 23, 2018
Slide 1: 23 October 2018
23 October 2018
Slide 2: Agenda and presenters
1. Overview - About AGL Loy Yang Steve Rieniets General Manager, Coal Operations 2a. Optimisation - Portfolio management Melinda Buchanan General Manager, Physical Markets 2b. Optimisation - Asset management Doug Jackson Executive General Manager, Group Operations 3. Optionality - Beyond base load D
Slide 3: Overview: About AGL Loy Yang
Overview About AGL Loy Yang
Slide 4: Part of a century of power generation in the Latrobe Valley
Part of a century of power generation in the Latrobe Valley One of the newest power Newest and largest mine VICTORIA stations in the Latrobe Valley development Melbourne AGL Loy Yang 1995 Corporatised Loy Yang 1982 Mine development Power (LYP) entity commenced 2004 GEAC acquired 1997 LYP 1984-88 pur
Slide 5: Integrated power station and adjacent fuel source
Integrated power station and adjacent fuel source The mine supplies both AGL Loy Yang and Loy Yang B, fueling more than half the state’s energy Coal reserve: 2 billion tonnes Annual extraction: 28-32 million tonnes Coal bunker capacity: 85 thousand tonnes or 20 hours Fuel consumption: 2,400 tonnes c
Slide 6: Key features of operations – power plant
Key features of operations – power plant AGL Loy Yang control room provides centralised control for the four generation units and their associated plant, 24 hours a day Turbine and generators: 4 • 3 x 560 MW and 1 x 530 MW at 3,000rpm • Total length stator winding strands: 100 km Boilers: 4 • Height
Slide 7: Key features of operations – mine
Key features of operations – mine A large producing brown coal mine the size of the Melbourne CBD with 30 million tonnes annual output Mine: • Area: 1,200+ Ha • Depth: 200+ metres • Width: 2.5 kms • Length: 4.5 kms • Coal seams age: 15-30 million years • Strip ratio: 6 coal to 1 overburden AGL Energ
Slide 8: Dredgers
Dredgers: 4 • 2 for coal, 1 for overburden, plus contingency • Bucket wheel: 13.2 metres in diameter (10 buckets/wheel) • Bucket capacity: 2.3 cubic metres • Machine size: 190 metres long, 50 metres high, up to 5000 tonnes in weight • Output: Coal – up to 3600 tonnes/hour, and Overburden – up to 250
Slide 9: Safety performance improvement since Target Zero strategy implemented
Safety performance improvement since Target Zero strategy implemented AGL Loy Yang - Combined Total Injury Frequency Rate (per million hours worked) Combined workforce of employees and contractors: 4.5 4.1 On average 1,000, and 4.0 3.7 up to 2,000 during major outage work program 3.5 3.0 2.9 3.0 Tar
Slide 10: A safe, engaged and productive workplace
A safe, engaged and productive workplace Goals: • Leadership • Flexibility • Productive processes • Technology benefits AGL Energy | AGL Loy Yang Investor Site Tour - 23 October 2018 10
Slide 11: Historical performance of the power station since AGL ownership
Historical performance of the power station since AGL ownership 18,000 100% 89% 89% 88% 88% 86% 16,000 80% 14,000 Increased generation 78% since Hazelwood 12,000 closure, March 2017 60% 10,000 GWh 8,000 40% 6,000 4,000 20% 2,000 0 0% FY14 FY15 FY16 FY17 FY18 Net actual generation Equivalent Availabi
Slide 12: Optimisation: Portfolio management
Optimisation Portfolio management
Slide 13: Short Run Marginal Cost ($/MWh)
One of the largest and lowest cost generators in the NEM – supplying 9% of generation output $200 $180 Short Run Marginal Cost ($/MWh) $160 $140 $120 $100 $80 $60 $40 $20 $- Coal Gas Price ($6/GJ) Gas Price ($9/GJ) Gas Price ($12/GJ) AGL plant Source: AEMO Integrated System Plan 2018 Assumption Work
Slide 14: Loy Yang adds to fleet's fuel and geographic diversity
Loy Yang adds to fleet’s fuel and geographic diversity FY18 AGL NEM supply by MWh FY18 AGL NEM demand by MWh Gas generators, 7% Queensland Other sales, 9% 11% Renewables, 9% South Australia, 7% Liddell Wholesale customers 18% 36% New South Wales Bayswater 54% 32% Business customers 23% Loy Yang Cons
Slide 15: Financial markets
Generators Financial markets Market customers National Electricity Market Retailers AGL Loy Yang Wholesale customers Gas transportation Gas & coal procured from producers & mines and markets Retail & business customers AGL Energy | AGL Loy Yang Investor Site Tour - 23 October 2018 15
Slide 16: Aka “what a difference a day makes!”
Aka “what a difference a day makes!” 17 January 2018 16:30-17:00 EST 18 January 2018 16:30-17:00 EST 30°C $117.60/MWh 40°C $12,931.04/MWh 3,000 Pool sales 2,500 Pool purchases Financial contracts Renewables 2,000 Gas Financial contracts Renewables Wholesale customers MW 1,500 Wholesale customers Bus
Slide 17: Flexibility as the market changes
Flexibility as the market changes Projected change in generation resource mix (installed capacity) 2018- 2040: AEMO Integrated System Plan Neutral case Opportunities and challenges for AGL Loy Yang with: Increasing renewable penetration – large and small scale Changing demand profiles with battery s
Slide 18: Optimisation: Asset management
Optimisation Asset management
Slide 19: Asset life stages: mature, mid-life, early
• Liddell Mature • Torrens A Mid-life • Bayswater • Loy Yang • Hydro Early • Wind & solar • Torrens B AGL Energy | AGL Loy Yang Investor Site Tour - 23 October 2018 19
Slide 20: Plant life and investment choices
Plant developed 40 Year Life 50 Year Life 60 Year Life 1984-1988 2028 2038 2048 Increased failure rate Reliable operation Time Maintain Mid-life investment Further investment choice? Past investment: Current investment: • Turbine upgrades • Turbine refresh • DCS upgrades • Generator replacement • Dr
Slide 21: Investing in mine and power station
Investing in mine and power station Power station: Loy Yang Capex ($m) 200 • 4-year maintenance cycle • Turbine and critical boiler components are upgraded in major outages every 150 Year 1 Year 2 Year 3 Year 4 LY1 100 LY2 LY3 50 LY4 0 Major outage FY16 FY17 FY18 FY19 FY20 plan FY21 plan budget Mino
Slide 22: Using latest technology to improve reliability, efficiency and component life
Using latest technology to improve reliability, efficiency and component life. High Pressure Turbine Upgraded Titanium Condenser Generator Refurbishment Tube Bank Low Pressure Turbine Single 1 Piece Forged Steam Loy Yang High Pressure Inspection Strainer Basket Turbine Rotor AGL Energy | AGL Loy Yan
Slide 23: Control systems architecture
Human machine interface (HMI)) Supervisory control and data acquisition (SCADA) Programmable logic controller (PLC) Field devices I/O AGL Energy | AGL Loy Yang Investor Site Tour - 23 October 2018 23
Slide 24: Using data analytics to predict and prevent failures – “our digital twin”
Using data analytics to predict and prevent failures – “our digital twin” Advanced Pattern Recognition “Finding failures before they find us” Early Warning System • Over 2700 models monitoring over 45k critical • Providing diagnostic service to Group points every 5 minutes Operations Business Units
Slide 25: Increased data, improved monitoring and analysis enhances performance and productivity
Increased data, improved monitoring and analysis enhances performance and productivity • Connection of low cost instruments in remote areas Remote Sensors • Ideal for increased monitoring of environmentally sensitive processes • Improved monitoring translates to improved performance Cloud Connected
Slide 26: OSI PI Cloud Services
Yesterday Now and Tomorrow Cloud OSI Pi Connectivity Machine Data Historian Learning OSI PI Cloud Services Microsoft Power BI Distributed Control System IIOT FogLamp Sigfox Beyond the Edge Edge Analytics Control Spec Wireless Instruments Online CM Devices National Instruments PLC AGL Energy | AGL Lo
Slide 27: Optionality: Beyond base load
Optionality Beyond base load
Slide 28: Capital Requirement and Technology Risk
Electricity technology maturity curve for new build Flow Batteries LITHIUM-ION BATTERIES Storage Super Capacitor Molten Salt Generation Capital Requirement and Technology Risk Fly wheel storage Pebble bed nuclear Sodium Sulphur Batteries Carbon Capture Coal Super Conducting Magnetic Energy Storage C
Slide 29: Including hydrogen
Including hydrogen Source: CSIRO National Roadmap for Hydrogen, 2018 AGL Energy | AGL Loy Yang Investor Site Tour - 23 October 2018 29
Slide 30: Rehabilitation and community
Rehabilitation and community • AGL has an integrated planning process for AGL Loy Yang mine rehabilitation • Reviewed annually • In excess of 628 Ha of rehabilitation already completed. • Provision of $58 million for rehabilitation as at 30 June 2018 • AGL continues to work closely with all stakehol
Slide 31: Important information
The information in this presentation: Statutory Profit and Underlying Profit: Is not an offer or recommendation to purchase or Statutory Profit is prepared in accordance with the subscribe for securities in AGL Energy Limited or to retain Corporations Act 2001 and Australian Accounting any securitie
Slide 32: Investor relations contacts
James Hall Chris Kotsaris Blathnaid Byrne General Manager, Capital Markets Senior Manager, Investor Relations Group Treasurer Phone: +61 2 9921 2789 Phone: +61 2 9921 2256 Phone: +61 2 9921 2255 Mobile: +61 401 524 645 Mobile: +61 402 060 508 Mobile: +61 424 644 947 Email: jbhall@agl.com.au Email: c