Sterling Energy

Sterling Energy has provided advice and identified solutions on a very wide range of business, technical, and operational issues.  We have considerable experience with nearly every type of power plant in every phase of development.  Some of those engagements are summarized here.

Management Support for Constellation Power Generation
Sterling Energy has worked with Constellation Power Generation (CPG) and its non-nuclear power plant fleet since early 2003.  Constellation operates a large fleet of combustion turbine, biomass, coal, synthetic fuel, geothermal, and hydroelectric plants.

Our engagements with Constellation have included:

• Conduct an organizational assessment of CPG given significant factors such as geography, marketing, technologies, and positioning for growth.  A number of options were presented to CPG management outlining the benefits of each option.  The current organizational structure reflects the results of this effort.  Sterling Energy continues to support the CPG Senior Leadership Team with advisory services.
• Construction completion, startup, and initial operation risk assessment of the 830 MW High Desert Power Plant (HDPP) facility.  This high profile plant located in California was of significant value to CPG (it was later sold).  Sterling Energy had numerous other engagements at the HDPP supporting their organizational development.
• Organizational assessment and improvement plan for two biomass plants and one coal-fired plant
• Transition management assessment and plan for one coal-fired and one natural gas-fired combined cycle plant
• Mock due diligence to prepare plant personnel for the successful sale of six facilities
• Strategic assessment and turnaround recommendations for two biomass plants
• Assessment, preservation, and relocation of gas turbine generator and balance of plant equipment
• Guided the establishment of the NERC generator owner (GO) and generator operator (GOP) reliability standards compliance program for seven plants

Generation Assessment and Plan for an Electric Cooperative
Sterling Energy performed a comprehensive assessment of new generation options for a fully integrated electric cooperative.  A comprehensive list of new generation options was prepared, evaluated and recommendations made.  An annual hourly dispatch model was developed for assessment of the options.  We estimated the costs for development, construction and operations. In addition, we developed the construction RFP and solicited construction bids.  The client subsequently developed and commissioned the combustion turbine option recommended by Sterling Energy.

Electric Utility Operations and Maintenance Management Assessment
Sterling Energy performed an O&M management assessment of the production and distribution facilities and organizations at a privately-owned electric utility in the Caribbean.  The facility had grown from a tiny, two-engine operation to a 31 unit facility serving 27 resort hotels.  The utility’s management systems had not evolved as the system grew and, as a result, there were significant reliability, efficiency, and management issues.  Sterling Energy performed a comprehensive management, operations, safety, and economic assessment.  We developed a turn-around plan and identified a significant fuel savings opportunity associated with engine performance and economic dispatch.

Development of Two Gas-Fired Projects in Southern California
Sterling Energy was retained by Shell Energy to perform the turnkey, greenfield development of two gas-fired power projects in response to the California Energy Commission’s emergency request for peaking power. The 94 MW Larkspur Energy Facility in San Diego consists of two GE LM6000 Sprint dual fuel combustion turbines and was the first to be licensed under the California Energy Commission’s emergency siting process. The 138 MW Indigo Generation Facility consists of three GE LM6000 Sprint gas turbines and is located in North Palm Springs.

Development Support for Coal Gasification Development Company
Sterling Energy provided development support to a leading developer of Integrated Coal Gasification (IGCC) projects in the United States. Our scope included identifying and screening sites, reviewing technology and providing advice and recommendations to the client. The initial efforts focused on screening dozens of potential sites for two sites with ready rail access combined with a wholesale electric market that could support the projects.

Merchant Plant O&M Assessment
Sterling Energy performed an O&M management assessment aboard a 150 MW heavy-fuel reciprocating engine-based power barge in the Caribbean.  Sterling Energy developed a plan to help the owners operate the plant successfully upon the expiration of the O&M contract. Sterling continues to provide periodic O&M advice to the client.

Operations & Maintenance Reviews of Three Biomass-Fired Power Plants
Sterling Energy conducted annual operations and maintenance reviews of three California biomass projects for a major IPP. The audits focused on management practices, staffing issues, forced outages and lost generation incidents, recent inspections and repairs to the steam turbine generators and other major equipment, inspection reports, spare parts inventory, long-term major maintenance plans, the annual operating and maintenance plan, monthly production reports, and O&M budgets and actual expenses for commercial operations period.

O&M Assessment for Large Biomass Plant in California
Sterling Energy performed an operational assessment of the 47 MW Colmac Biomass project located in southern California.  The report identified a number of opportunities to improve the plant’s technical and economic performance.

Strategic Assessment and Turnaround of California Biomass Projects
Sterling Energy performed a strategic assessment of the Rio Bravo Fresno and Rio Bravo Rocklin 25 MW biomass plants.  We categorized and performed root cause analyses of performance problems, developed an economic model that identified fixed and variable costs, reviewed the fuel procurement process and history, and solicited and evaluated options related to boiler improvements.  Our recommendations included a combination of boiler improvements and the implementation of an “effective cost of fuel” management program. The owners made the investments that we recommended and engaged us to oversee certain aspects of the turnaround plan at one plant. As a result, that plant’s capacity factor reached an all-time high in the following year and remains well above its pre-assessment average.

Landfill Gas Operations Assessment
Sterling Energy performed an operations assessment of a 9 MMSCFD landfill gas-to-pipeline gas plant in the Gulf Coast area.  Sterling identified opportunities to implement plant performance measures and to develop meaningful management reports to identify and quantify performance improvement opportunities.

Biofuels Technology Company Investment Evaluation
A Sterling Energy principal evaluated for a potential investor a proposed investment in an early stage biofuels technology company.

Biodiesel Project Due Diligence
Sterling Energy performed a due diligence assessment of a proposed investment in a 2.6 million gallons per year biodiesel project.

O&M Assessment and Turnaround Plan at 40 MW Biomass Plant
Sterling Energy was retained to review operational and maintenance issues impacting reliability at the Sanger Power and Feed Plant, a 40 MW of electricity and 30,000 tons per year of feed facility. The Sterling Energy team evaluated all plant processes, from fuel handling through electrical generation. A prioritized action list was developed and changes implemented resulting in a substantial improvement in plant reliability and performance.

Large Solar Thermal Power Facility Strategic Assessment
Sterling Energy, teaming with Investment Management Advisors, was retained to conduct an operational and business strategic assessment of a solar thermal power business consisting of five 30 MW plants.  The team evaluated alternative operating and maintenance, financial, contracting and other strategies to maximize value for the investors in the facility.  The team made recommendations for action that were implemented by the investors.

Development Support for Large Thermal Solar Power Plant
Sterling Energy provided development support for a large solar thermal power developer.  Sterling’s scope included site identification, resource assessment, fatal flaw analysis, and support regarding the acquisition of development rights.  Additional services included review of transmission access issues, a review of technical and operational issues, and the development of a mobilization and O&M budget. The project has a purchase power agreement and is under development.

Operating Contract Review for Southern California Solar Thermal Projects
Sterling Energy reviewed for project owners the operating contract for five 30 MW solar thermal projects in southern California.

Strategic Assessment of Southern California Solar Thermal Projects
Sterling Energy performed for project owners a strategic assessment of five 30 MW solar thermal projects located in southern California.  The engagement included the development of multiple operating, business and technical options for the facility.

Development of O&M Cost Estimate for Thermal Solar Developer
Sterling Energy prepared a comprehensive operating and maintenance estimate for a large power tower solar thermal project developer.

Feasibility Assessment for Solar Thermal Project
Sterling Energy performed an assessment of a project opportunity for an international solar thermal energy project developer.  The engagement included an assessment of the site and the solar resource, identification and evaluation of system integration issues, exploration of land lease and power purchase terms and issues, and identifications of other issues related to the local utility.

Corporate Wind Program Development
A Sterling Energy principal assisted a major Nordic country generation company in a wind power development program planning effort.  The project scope included the identification and wind monitoring of near-term developable sites and a complete assessment of wind power potential on the national level.  As a result, a client-specific wind project development program totaling over 1,100 MW was developed.  The scope also included a wind turbine technology evaluation.

Wind Project Repower Program Evaluation and Planning
Sterling Energy performed multiple repowering evaluation scenarios of the 164 MW Green Ridge power assets in the Altamont Pass area of California.  We developed detailed repowering plans for each scenario.

Asset Management Development Program
A Sterling Energy principal developed the asset management program for the 18 MW Tierras Morenas wind project in Cost Rica.

Asset Management and Project Performance Improvement Assessment
Sterling Energy performed asset management program assessment and project performance improvement review for the 100 MW Le Nordais wind project on the Gaspe Peninsula in the Province of Quebec, Canada.

Project Business Model and Feasibility Assessment
Sterling Energy developed project a business model and performed a feasibility assessment for an 85 MW wind project in the western U.S.

Project Valuation and Sales Evaluation
Sterling Energy performed a project valuation of a 5 MW wind power project in the Great Plains.  We also developed an offering memorandum for the project assets and evaluated potential sale proceeds.

Aftermarket Operating Services Assessment
Sterling Energy performed a complete assessment of the aftermarket operating service business of a major wind developer and turbine supplier.  All aftermarket activities including maintenance, operations, parts, and other service products were evaluated and recommendations provided.

Operating Project Removal Assessment
Sterling Energy performed a wind turbine generator removal, scrap, and sales assessment for two projects totaling 30 MW of generation.  The assessment was a key consideration in a strategic assessment of project options by the wind project’s owners.

Western State Wind Project Transmission Assessment
Sterling Energy performed a transmission availability and cost assessment for a proposed 200 MW wind project in the western U.S.  The project included an assessment of the potential paths – both physical and contractual – from the project to target markets.  The effort resulted in recommendations in order of priority for least cost transmission capacity for the project.

30 MW Wind Project Feasibility Assessment
Sterling Energy developed a feasibility assessment for a greenfield 30 MW wind project in the Northwest.  The assessment focused on meteorological data, transmission, site access, equipment transportation, arctic operations and economic viability. A more recent engagement on the same project resulted in a detailed development and business plan.

Development, Transmission and Permitting Assessment
Sterling Energy performed an independent assessment of development assumptions and the transmission and permitting plans for a 1,500 MW wind project development in southern California.

Mexican Wind Project Bid Preparation
Sterling Energy led the development of a bid for a California utility request for proposals.  The large wind project, located in Mexico’s Baja California area, was being developed by a European client.

Cogeneration Plant Management in Canada
Sterling Energy manages the combined heat and power plant at Ford Motor Company’s Windsor, Ontario engine plant. Sterling developed a comprehensive energy and economic model of the facility that enabled Sterling to identify significant energy savings opportunities.  As a result, Ford saved more than $2 million in the program’s first year.

Industrial Energy Savings Assessments for U.S. Department of Energy
A Sterling Energy principal performed energy savings assessments for the U.S. Department of Energy at 18 large industrial facilities. The assessment scope included the development of a plant-specific energy and economic model, training of plant and corporate staff on assessment tools and models, and the identification of cost-effective energy savings opportunities.

Energy Management System Standard
A Sterling Energy principal served on the review board for the development and subsequent update of the ANSI standard MSE 2000: A Management System for Energy. The standard, developed by Georgia Tech’s Energy and Environmental Management Center, contains both technical and management system elements to help organizations control and reduce energy costs and energy-related environmental impacts. It is the first energy management standard in the world, and is the energy management equivalent of well-known standards ISO 9001 for quality management and ISO 14001 for environmental management.

Cogeneration Plant Assessment for California Municipality
Sterling Energy performed a technical and economic assessment of a biogas-fired cogeneration facility at a wastewater treatment plant in California. The scope included an assessment of the plant’s useful life, the development of a cogeneration system economic model, and an evaluation of alternative approaches and technologies.  As a result of the study, the city was able to eliminate a large capital project.  Sterling also identified an opportunity to reduce pilot gas consumption, thus improving the cogeneration plant’s economics.

Cogeneration Facility Assessment for Large Commercial Property Owner
Sterling Energy assessed the contracts, economics, and technical performance of a troubled gas-fired cogeneration facility located in a large commercial office tower.

Energy Savings Assessment at a Synthetic Natural Gas Plant
A Sterling Energy principal performed an energy savings assessment at an SNG plant adjacent to a refinery.  The assessment scope included the identification of energy savings opportunities, an economic evaluation of power supply alternatives, and an evaluation of the risk – and possible risk mitigation measures – associated with the current power supply. The study identified $700,000 in annual fuel savings with a payback of less than one year.

Operational Risk Assessment at a 500 MW Combined Cycle Facility
A Sterling Energy principal facilitated an operational risk assessment at a 500 MW combined cycle plant in response to a series of unit and plant trips triggered by certain operations and maintenance activities. The team used a failure modes and effects analysis (FMEA) tool to identify and evaluate operational risks and potential risk mitigation options, and to communicate the results and recommendations to senior management.

Operational Risk Assessment at a 600 MW Combined Cycle Facility
Sterling Energy facilitated an operational risk assessment at a 600 MW combined cycle plant in response to a series of unit and plant trips triggered by certain events. Sterling presented and trained plant staff on the use of a failure modes and effects analysis (FMEA) tool.  The team used the tool to identify and evaluate operational risks and to identify and evaluate potential risk mitigation options.

Development Support for Combined Cycle Plant Utilizing Solar Thermal Power
Sterling Energy evaluated EPC options and negotiated EPC scope for a 600 MW proposed combined cycle plant that will utilize 50 MW of steam produced in an adjacent solar thermal facility and injected into the plant’s HRSGs.  Sterling’s scope included the evaluation of EPC bids, negotiation of EPC scope and terms, and the integration of the power island, balance of plant, and solar field EPC contracts.  Sterling also evaluated and provided advice regarding project schedule, site control and interconnection issues.

Project Management Support for a Biodiesel-Fired Cogeneration Plant
Sterling Energy was brought in to take over certain aspects of a troubled biodiesel reciprocating engine cogeneration project already under construction.  Sterling directed the final stages of construction to get the project back on schedule and redesigned the fuel system so the plant could burn 100% biodiesel. In addition, Sterling managed the plant startup, set up a system for managing contentious warranty claims, and advised the client on the renegotiation of the steam sales agreement.

O&M Cost Benchmarking Study for a 2,600 MW Fleet of Combined Cycle Plants
Sterling Energy performed an O&M cost benchmarking study for the owner and operator of a 2,600 MW fleet of combined cycle plants. Sterling’s study, which compared the client’s plants to nine confidential plants, focused on costs driven by operations management practices.

O&M Cost Benchmarking Study for a 477 MW Combined Cycle Plant
Sterling Energy performed an O&M cost benchmarking study for the owner and operator of a 477 MW combined cycle plant. Sterling’s study compared the client’s plant to twelve confidential plants in the area of operations management practices.

O&M Management Review at Merchant Plant in Central America
Sterling Energy was engaged by plant owners to perform an O&M management audit of a recent acquisition in Central America.  The 55 MW facility included reciprocating engines operating on heavy fuel oil. The plant provided energy and capacity into an open, cost-based market.  Sterling benchmarked the plant’s O&M management methods against industry best practices across a range of O&M management topics.  Sterling identified many near- and medium-term opportunities to improve the operations, maintenance, and management of the facility.

O&M Management Audit at Merchant Plant in the Caribbean
Sterling Energy was engaged by plant owners to perform an O&M management audit of a recent acquisition in Caribbean. The 124 MW facility included two power barges equipped with reciprocating engines operating on heavy fuel oil. Sterling benchmarked the plant’s O&M management methods against industry best practices across a range of O&M management topics.  Sterling identified 22 specific opportunities to improve plant heat rate and a range of other operations, maintenance, and management opportunities aimed at improving the company’s bottom line.

O&M Management Review at Two Merchant Plants in the Caribbean
Sterling Energy was engaged by plant owners to perform O&M management reviews of two merchant plants – one steam and one diesel – in the Caribbean. Sterling benchmarked the plant’s O&M management methods against industry best practices across a range of O&M management topics.  The reviews also benchmarked the organizations against the desired development of a project as it progresses from start-up to maturity.  Although Sterling identified several opportunities for incremental improvement, both Sterling and the owners were pleased to note that both plants were well-managed.

Transmission Interconnect and Other Development Support for a Biomass Plant
Sterling Energy provided guidance regarding interconnection and transmission issues, prepared and submitted the project’s interconnection application to the CA Independent System Operator, and met with the local utility regarding this biomass power plant development.  In addition, Sterling prepared and submitted to the California Energy Commission the biomass power project’s application for precertification as a renewable power source.

Development Support for Biosolids Gasification Process and Power Plant
Sterling Energy developed a mass, energy, and economic model of a proposed integrated biosolids (sewage sludge) gasification process and power generation facility.

Variable O&M Costs for a Coal Plant Pollution Control Retrofit
Sterling Energy developed a comprehensive variable O&M cost model for the retrofit of scrubbers and SCRs at an existing four unit, 1,250 MW coal plant.  The model calculated the retrofit’s impact on parasitic load, net plant output, net plant heat rate, and variable operating costs.

Contingency Operations Plan during California Wildfires
Sterling Energy was called in by the local utility to develop a contingency plan for an island operating mode when wildfires threatened the utility’s transmission line links to other utilities.

Power Supply Options Study and Fuel Procurement Advice for Industrial Facility
Sterling Energy reviewed a range of power supply options for the San Diego Union Tribune newspaper.  After studying the client’s load profile, fuel pricing, the existing combustion turbine, and additional unit options, we analyzed six different scenarios and presented the client with the least cost option.  As part of the study we also identified opportunities to reduce peak demand while maintaining plant capacity and throughput.  In addition, we identified an additional savings opportunity related to fuel procurement.  We implemented the fuel procurement strategy and managed it for the client for several years.

Energy Cost Management Program for University Cogeneration System
Sterling Energy developed an energy cost management program for a large university in the West.  The university’s plant included two combustion turbine cogeneration facilities producing both electric energy and steam.  Our scope included the technical and economic characterization of a number of supply scenarios, analyses of hourly and annual system loads, and an analysis of utility gas and electric prices.  We developed an economic dispatch model that identified the optimum, low-cost operating scenario for a given set of loads and energy prices.

Project Management for Water System at Cogeneration Plant
Sterling Energy provided to plant owners a project manager to oversee the design, construction, and testing of a distilled water plant following the exit of the steam host at a gas turbine cogeneration plant in California. Water from the plant, which was needed in order to meet the PURPA efficiency standard, is sold to a third party user.  The project was completed on schedule and prior to the FERC deadline.

Project Management for Cogeneration Plant Expansion
Sterling Energy provided to plant owners a project manager to oversee the construction and testing of a new combustion turbine and heat recovery steam turbine at an existing cogeneration plant in Canada.

NERC Reliability Standards Compliance Review for Two Cogeneration Plants
Sterling Energy reviewed the compliance with NERC’s generator owner (GO) and generator operator (GOP) reliability standards at two cogeneration plants in the West.  Sterling’s scope included a review of the existing program, development of recommendations, and a follow-up review of the plants’ implementation of Sterling’s recommendations

Development of NERC Standards Compliance Program for Seven Plants
Sterling Energy developed the NERC reliability standards compliance program for a fleet of seven plants.  Sterling’s scope included a gap analysis, development of program procedures and documentation, and the training of plant and corporate personnel.  In addition, Sterling conducted internal readiness audits.

Establishment of NERC Standards Compliance Program for Hydroelectric Plant
Sterling Energy developed the NERC reliability standards compliance program for a hydroelectric plant in the west.  Sterling’s scope included a gap analysis, development of program procedures and documentation, and the training of plant staff.  Sterling also conducted an internal readiness audit.

O&M Assessment and Turnaround at Troubled Merchant Plant in Latin America
A Sterling Energy principal performed a management, operations and maintenance assessment at a troubled, contract-operated merchant plant in Latin America. The assessment included the development of a project cash flow model, an economic dispatch model, plant performance measures, and the identification of a number of O&M cost savings opportunities including plant heat rate and fuel procurement process control. The work scope also included interviewing plant manager candidates and the on-site technical and commercial training of the new plant manager.

Owner’s Representative for the Resurrection of a Troubled Biomass Facility
Sterling Energy advised the owners regarding the rehabilitation of a troubled biomass power generation plant in California.  Our scope included an analysis of the fundamental business proposition and advice regarding the scope of the restoration.  We approved, on the owner’s behalf, restoration expenditures and we recommended equipment repairs and changes based on findings during the project.  As the station re-entered commercial operation, we provided a senior manager with extensive experience in biomass plants to augment the owner’s management team.

Read more about our management and technical consulting services.

For more information please contact Ron Fawcett or Dave Morgan.