O&M

Trends in plant O&M with EthosEnergy’s Terry Schoenborn

In a recent interview with Power Engineering, Schoenborn highlighted the evolving market dynamics that are shaping plant O&M.

Recent Integrated Resource Plans (IRPs) indicate that U.S. utilities are planning for the largest increase in natural gas-fired power plants in over a decade. Buyers of F-Class, advanced-class and aeroderivative gas turbines are reportedly experiencing lead times not seen since the early 2000s.

Terry Schoenborn has certainly noticed this renewed interest, which he attributes to projected rising electricity demand from data centers and manufacturing.

“In the last 10 years, there hasn’t been as many new greenfield sites going in, but we’re starting to see some of that activity pick up,” said Schoenborn, who is Senior Vice President of Operations and Maintenance (O&M) at EthosEnergy.

This was just one trend discussed in a recent interview with Schoenborn, who highlighted the evolving market dynamics that are shaping plant O&M.

Plants are changing hands

Schoenborn told us there is a lot of Merger & Acquisition (M&A) activity right now in the power generation market, driven by factors like the Inflation Reduction Act and a renewed interest in reliable gas capacity.

“I just think it’s a dynamic market right now,” he said, “and there are opportunities for investors to take advantage.”

As assets flip, adaptation is important for EthosEnergy, which has operated more than 100 generation facilities (mostly gas) dating back to its inception in 2014.

For example, the company was recently awarded O&M contracts for six natural gas combined-cycle (NGCC) plants in Mexico. This was shortly after the Iberdrola-owned facilities were sold to private equity firm Mexico Infrastructure Partners (MIP).

When EthosEnergy takes over O&M for multiple, let alone six plants at once, the process of scaling up manpower and training can be challenging. The work starts with assessing the condition and staffing levels of those facilities.

Schoenborn said some plants EthosEnergy takes on are in good condition and others require more care and effort.

“We may have to have more resources, spend time at that plant to get it up to speed or the level that our customers expect,” said Schoenborn.

A plant’s condition often depends on where it is in its lifecycle and how much a customer thinks it can extract out of it, he said.

“It could be just as simple as, if the customer knew they were selling the asset, they are probably not going to invest as much into it,” he said. “So it just gets into disrepair.”

While EthosEnergy has close to 800 employees in its O&M division, the company has brought in approximately 100-150 just in the last two years as it has taken on new contracts.

The importance of peaking power

Gas turbines are taking an increasingly important role as peaking power sources, since they can be ramped up and down quickly to meet demand spikes, filling in gaps when renewable resources are not generating electricity.

For that reason EthosEnergy earlier this year launched its Houston-based Performance Center, where the company monitors generators in 20 different countries.

The center combines 24/7 remote start-stop capabilities with monitoring and diagnostics. EthosEnergy operators control start-stop operations through encrypted cyber-secure VPN technology. They can use video surveillance to monitor a customer’s assets using real-time thermal imaging.

Inside EthosEnergy’s Performance Center in Houston. Courtesy: EthosEnergy.

Schoenborn noted a lot of peaking plants with low capacity factors are fully-staffed and operate almost on-call. He said using the performance center is a good solution to optimize the reliability of these assets that sit idle most of the time, and from a cost perspective.

“We felt like it was a something we needed to have to play in this market,” Schoenborn told us.

Schoenborn said the capabilities of the performance center have opened up new discussions with customers, particularly as the energy transition may run slower than anticipated.

As customers target aggressive net-zero goals, EthosEnergy works with them to develop realistic maintenance strategies. Schoenborn emphasized the importance of maintaining reliability without overinvesting in assets that could be repurposed or shut down in the near-future.

“How we’re working with them is saying, ‘Let’s really sit down and talk about what maintenance you need to have to make sure you maintain the same level of reliability,’” he said.

Watch the full interview with Terry Schoenborn above.

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