Power Air Quality Insights No

Power Air Quality Insights
No. 161 June 12, 2014

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· World Market for Treat, Transport and Test Market Will Exceed $387 Billion By 2015

World Market for Treat, Transport and Test Market Will Exceed $387 Billion By 2015

The world market for air and gas, water and other liquids flow and treatment equipment and services will exceed $387 billion in 2015 up from $367 billion in 2014. This is the latest forecast in Market Air/Gas/Water/Fluid Treatment and Control: World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

Region	2014	Growth Rate	2015
Africa	19	6	20
Americas	99	5	104
Asia	161	6	171
Europe	88	4	92
World	367	5.4	387

Large companies such as Ecolab and Colfax have been expanding in the broader flow and treatment market. Xylem is in the market and has segmented their activities into treat, transport and test. McIlvaine has defined this market to include pumps, valves, compressors, liquid and air filtration equipment, biological treatment systems, treatment chemicals and all the related monitoring and control systems to move and purify fluids.

The growth in Asia this year is projected at 6 percent versus only 4 percent in Europe and 5.4 percent worldwide. This is in real dollars. Inflation is presently projected at 3.8 percent this year. The aggregate revenues of the companies participating in this market are anticipated to rise to $402 billion in 2015. Reported revenues are always in current dollars. So, one must take into account inflation to fairly compare the forecasts with the actual results.

In general, this market is growing at 1-2 percent faster than GDP. In part this is due to environmental regulations which add additional stimulus to the treat segment of the market. Another factor is the switch from conventional natural gas and oil to nonconventional recovery. The amount of treat, flow and test investment in a shale oil or shale gas extraction process is considerably greater than extraction from conventional sources.

For more information on Air/Gas/Water/Fluid Treatment and Control: World Market, click on:

Sales of new FGD systems next year will be primarily in East Asia and the major replacement and retrofit markets will be in Europe and the U.S. However, China will be a leader in replacement as well as new systems. The total market for FGD Systems and components will exceed $8 billion in 2015. This is the latest forecast in McIlvaine FGD Market and Strategies. (www.mcilvainecompany.com)

World Region	2015
Total	3,433
Africa	0
CIS	0
East Asia	2,735
Eastern Europe	193
Middle East	74
NAFTA	257
South & Central America	11
West Asia	0
Western Europe	163

There could possibly be one new coal-fired power plant in the U.S. ordered in 2015. The retrofit of FGD systems to existing power plants will be modest due to the decision by some operators to use dry sorbent injection rather than scrubbers. The Chinese market will include scrubbers for many new power plants as well as a continuing large market to replace some of the older FGD systems which have not met efficiency requirements.

Eastern Europe will continue to complete its FGD program. Western Europe is now realizing that coal will be a necessary part of the fuel mix for a long while. As a result, there will continue to be replacements of older systems. Many of the European FGD systems were installed in the 1980s, so they are more than 30 years old.

The use of wet scrubbing with limestone as the reagent and gypsum as the byproduct will continue to dominate the world scene. However, there will increasingly be selections of alternative technologies including wet lime, dry lime, ammonium sulfate, double alkali, direct sorbent injection and hot catalytic filtration with sorbent for SO₂removal.

MY Obtains Approval to Develop and Operate 300 MW Off-Shore Wind Power Project in Jiangsu Province

China Ming Yang Wind Power announced its subsidiary, Jiangsu Mingyang Wind Power Technology Limited, (Jiangsu Mingyang), has been approved by Rudong Energy Bureau in Jiangsu Province, China, to exclusively develop and operate a 300 MW off-shore wind power project off the coast of Rudong in Jiangsu Province, China, subject to certain conditions.

"This marks an important milestone in Ming Yang's off-shore strategy in China," commented Mr. Chuanwei Zhang, Chairman and Chief Executive Officer of Ming Yang. "Ming Yang expects to continue to leverage the off-shore opportunity in China and deliver our innovative Super Compact Drive (SCD) wind turbine generators as an effective solution for off-shore wind power projects in China and beyond."

Alliant Energy's Wisconsin utility issued a request for proposals (RFP) for energy and capacity for its customers. The generation resource is being requested to replace older and less efficient units, provide customers with stable power supply, and support economic growth. This is part of the company's strategy of providing more power from cleaner fuels and relying less on any single fuel.

"We are actively evaluating what future mix of fuel sources makes the most sense for our customers, the environment and our company," said John Larsen, President of Alliant Energy's Wisconsin utility. "We believe it is in the best interest of our customers to have flexibility in the power we generate or purchase. To achieve this, we expect natural gas and wind to become a larger part of our energy portfolio."

SunPower Selected to Build 19 MW Solar Power System at Nellis Air Force Base

SunPower Corp. has been selected by NV Energy to build a 19-megawatt (DC) solar photovoltaic power system at Nellis Air Force Base in Nevada. The system is expected to be constructed next year, contingent on contract approval by Nevada's Public Utilities Commission. It will be the second major solar installation located at the military facility – SunPower completed a 14-megawatt (DC) solar power system at the base in 2007.

"We are pleased to team again with NV Energy. In 2007, it took nine months to construct the 14-megawatt plant at Nellis Air Force Base, which was the largest solar photovoltaic power plant in the U.S. at the time," said Howard Wenger, SunPower president, regions. "Today, we can install more than one megawatt per day at our larger power plant sites, creating long-term value for our utility customers and competing effectively with traditional energy sources. We congratulate NV Energy for their leadership in renewable energy and are pleased to work with them on this important project."

At the site, SunPower will build a SunPower Oasis™ Power Plant system. Oasis is a fully integrated, modular solar power block that is engineered to rapidly and cost-effectively deploy utility-scale solar projects while optimizing land use.

GE Energy Financial Services Invests in Japan’s Renewable Energy Power Market

Expanding its international and renewable energy footprints, GE unit GE Energy Financial Services has invested in a 32-megawatt solar photovoltaic power project in Japan. This transaction, with project developer Pacifico Energy, contributes to GE Energy Financial Services’ plan to invest over US$1 billion annually in renewable energy projects worldwide. Financing for the solar project, known as Kumenan, was done on a non-recourse project finance basis and was supported by a JPY ¥11 billion loan from The Bank of Tokyo-Mitsubishi UFJ and The Chugoku Bank Ltd.

Located in the prefecture of Okayama, Kumenan has started construction and is expected to reach commercial operations in the first quarter of 2016. With approval by Japan’s Ministry of Economy, Trade and Industry, it will sell power to a regional utility through a 20-year power purchase agreement at a fixed tariff rate. Pacifico Energy ― a utility-scale solar project developer based in Tokyo, and a subsidiary of Virginia Solar Group ― is managing construction and operations. Toyo Engineering Corporation is the construction company on the project, and photovoltaic modules are supplied by Yingli Green Energy.

Researchers at Florida Atlantic University’s Southeast National Marine Renewable Energy Center (SNMREC) will soon install the world’s first offshore test berth for small-scale ocean current turbines thanks to a recently signed five-year lease agreement between FAU and the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM).

The lease allows installation of multiple anchored floating test berths on the U.S. outer continental shelf 13 miles (22 km) offshore from Broward County, FL. These test berths, each consisting of a buoy anchored to the sea floor, allow ocean current turbine prototypes (up to 100 kW generation capacity) to be deployed from vessels moored in the Gulf Stream for a few weeks at a time.

FAU’s SNMREC has been working since 2007 to establish the world’s first offshore ocean current turbine test site. Researchers recently performed a successful final sea trial of the first test berth buoy as well as preliminary tow tests of a small-scale research turbine in late 2013 — key steps before the installation of the test site. Before receiving a lease offer from BOEM, an environmental assessment of the project concluded that “no significant impact” was expected. Before installation of the first test berth planned this year, a project plan will be reviewed by BOEM. This work is supported by close to $20 million in funding from the U.S. Department of Energy, the state of Florida and private companies.

· Appeals Court rules Maryland PSC cannot subsidize Natural Gas-fired Development

· DTE Energy (Detroit) issues RFP for Natural Gas, Combined Cycle Generation Facility

· ODEC awards EPC Contract to White Oak Power Constructors for 1,000 MW Gas-fired Power Plant in Cecil County, Maryland

· Construction begins on Marshalltown 650 MW Combined Cycle Gas-fired Power Plant

· Toshiba receives Combined-Cycle Project Order from Hokkaido Electric Power Co., Inc. for Ishikariwan Shinko Power Plant Unit 1 Powered by GE/Toshiba Alliance

· PacificLight Power launches 800 MW Gas-fired Power Plant on Jurong Island, Singapore

· Shanghai Electric Group to buy Stake in ILFS Projects

· Jaypee Power Ventures, Lanco Infratech, GMR Infrastructure, others looking to sell Power Assets to NTPC

· Carbon Processing Facility, Biomass Power Plant Assets up for Auction in Hawaii

· Haryana to set up Two Power Plants in Faridabad and Yamuna Nagar District, India

· Major Changes in the Scrubber Market Due to Hot Gas Option and Vapor Recovery

· “HRSG Issues (Fast Start, Tube Failures)” is “Hot Topic Hour” on June 12, 2014

On Thursday at 10 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. Power webinars are free for subscribers to either Power Plant Air Quality Decisions or Utility Tracking System. The cost is $300.00 for non-subscribers.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT
June 12, 2014	HRSG Issues (Fast Start, Tube Failures)	Lots of challenges to cycle 200 X/yr
June 26, 2014	CCR	$ billions Needed
July/August 2014	Boiler Feedwater Treatment Condensate Polishing for Peaking Turbines 316 B Water Issues Gas Turbine Permitting Issues *Give us your opinion about topics we should consider*