Natural gas internal combustion engine power generation：Accumulate experience and wait for the opportunity
With the global energy transition and the "dual carbon" initiative gaining momentum, gas-fired power generation, due to its high efficiency, low carbon footprint, and flexibility, has become a key option for building a new power system. However, according to data from People's Daily Online, by the end of 2023, natural gas account for 23% of global power generation, while China only account for 3.2%. Therefore, Kelinyuan will leverage its global project experience to support the upgrading of natural gas power generation technology and, when domestic market conditions mature, help China achieve a steady and long-term energy transition.
1. Reliance on imported gas sources
China's natural gas imports account for over 40% of total consumption, and LNG (liquefied natural gas) import prices are highly susceptible to fluctuations in the international political landscape (e.g.the Russia-Ukraine conflict in 2022 led to a sharp rise in LNG prices across Asia).
Power generation cost breakdown: Fuel costs account for 70%-75% of total costs. When natural gas prices range from 2.2￥to 2.7￥ per cubic meter, power generation costs reach 0.56￥to 0.58￥per kilowatt-hour, far exceeding coal-fired power generation costs (0.3￥to 0.4￥).
2. Low utilization efficiency
Annual utilization hours are around 2,500 (compared to around 4,500 for coal-fired power), and power plants in load centers, such as the Yangtze and Pearl River Deltas, are primarily used for peak shaving. This results in poor economic efficiency.
Outdated Electricity Pricing Mechanism: Only a few provinces, such as Zhejiang, have implemented a "two-part tariff," while most regions rely on local government subsidies, raising questions about sustainability.
3. High maintenance costs
The gas turbine market is dominated by GE, Siemens, and Mitsubishi. Core components, such as high-temperature blades, must be replaced every 30,000 to 40,000 hours. Long-term maintenance costs can be as high as three times the price of the gas turbine itself.
Natural gas power generation market
Target regions: Southeast Asia, the Middle East, Africa, Russia, Central Asia, and other regions with abundant natural gas resources.
Price advantage: It offers a more competitive price than similar products from Europe and the United States.
Energy Advantage: Stable gas supply and cost-effective calculations that meet environmental protection and peak shaving requirements.
Compatibility: The unit is compatible with multiple fuels, including natural gas, biogas, and LPG.
Applications: It is suitable for distributed energy stations and microgrids, renewable energy complementation, "gas-solar" and "gas-wind" hybrid power plants, and emergency and backup power sources. It can also be used in special environments, such as high-altitude cold regions or environmentally sensitive areas.
Kelinyuan----Breakthrough in Domestic Production of Gas Internal Combustion Engines
1. High power, high efficiency, low maintenance
The single unit power range is from 300 to 4,000 kW, which meets the needs of various scenarios, such as industry and commerce, microgrids, and oil and gas fields.
The power generation efficiency exceeds 40%, and the comprehensive energy efficiency can reach 80-90% in combined heat and power (CCHP) mode.
Maintenance costs are lower than those of imported units, and localization of key components is increasing year by year.
2. Kelinyuan is the only internal combustion engine company to receive national "first-of-its-kind" certification.
In 2021, Kelinyuan's 4,000 kW gas internal combustion engine was included in the national energy sector's catalog of major technical equipment, marking a key step forward for China in the localization of gas power generation equipment.
3. Highlighted Technologies:
In-Cylinder Mixing Direct Injection Technology
Layered Lean Combustion Technology
Automatic air-fuel ratio matching
Pre-combustion chamber technology
