Combined Cycle Power Plant Case Study Example | Topics and Well Written Essays - 2250 words

Combined Cycle Power Plant - Case Study Example We examine Navasota's current position in the Texas energy market place to describe the environment in which the company is developing, the strengths and weaknesses and financial characteristics of such a company. We then propose different possibilities for a strategy for Navasota in the future and extend our analysis to see what leadership and rewards might need to be available for Navasota employees, executive or other, to make this happen. When considering the total amount of energy used in the United States, 22% of it corresponds to natural gas. Natural gas is used to produce heat, steam and electrical power generation, with use ranging from commercial and residential sectors, to industrial processes. At the moment, 15% of utility and non-utility power is produced from natural gas. Projections show that in the US as a whole 33% of the electricity generated in 2020 will be from natural gas-fired power plants (Spath & Mann, 2000). However although this is figure that may be true on average for the whole country, individual states, as we will see later, may have different objectives. Navasota runs two natural gas combined cycle facilities in Texas, one in Wharton and the other in Odessa. The term "combined cycle" refers to the method used to improve the efficiency of electricity generation. ... An independent study on gas-fired generators found that CO2 accounts for 99 wt% of all air emissions. Methane is emitted in the next highest quantity, 74% of which are fugitive emissions from natural gas production and distribution (Spath & Mann, 2000). In Texas in particular however, the historical activity of oil and gas production is decreasing. The state is gradually turning its attention to sustainable, "green" energy sources. It cites the drivers for this shift in emphasis as being peak oil and gas prices, climate change, technological change and economic development issues (Texas State, 2008). Currently gas with its 4253 trillion BTUs is second only to oil in terms of the quantity of energy generated in the primary energy category for Texas. Conscious of the environmental consequences, mindful of the falling intra-state production of gas and looking for ways to contain and reduce energy expenditure, the state has identified biomass and bio-fuels, wind, solar and geothermal energy sources as candidates to replace oil and gas generation of energy, together with a further source of (electrolytic) hydrogen (State of Texas, 2008). It is this thinking that leads the state of Texas to define green buildings, wind power generators, hydrogen, advanced solar, hydrogen re-powering, transportation unification and tele-transportation as the new vectors of energy generation and energy economy to be followed. The proposed Texas State energy strategy is then defined as the re-establishment of energy independence for Texas, the development of new, renewable energy, strengthening of the rural and domestic sectors as energy generators (notably from solar energy) and