Power Air Quality Insights No

Power Air Quality Insights
No. 159 May 29, 2014

WELCOME

The following insights can be sent to you every week. This alert contains the details on the upcoming hot topic hour, breaking news, and the headlines for the Utility E Alert for the previous week. This is one of a number of free services. You can sign up for any of these newsletters and of course request to be removed from the mailing list at any time. See registration following the newsletter.

· Market for Thermal Oxidizers in the U.S. Oil and Gas Industry Is Changing

There is no big pot of gold in the greenhouse gas market. Instead, there are a number of potentially profitable ore bodies. Some money will be made by those selling the supplies to the miners looking for the mother lode, but it will not be found. This is the conclusion of the McIlvaine Company by extracting information from the following publications which it publishes, Utility CO₂ Mitigation Markets, Fossil and Nuclear Power Generation: World Analysis and Forecast and Renewable Energy World Market.

The mother lode would be closure of the world’s fossil plants and a huge investment in solar, wind and biomass electricity generation. The reality is that these alternative energy sources will not replace coal in the next few decades. Even with all the environmental controls a coal-fired power plant can produce electricity at half the cost of alternatives. A gas turbine power plant can also produce cheap electricity where gas is inexpensive.

The problem is that gas can be inexpensively made transportable (LNG) and sold at high prices. It can also be converted to liquid fuels profitably if there is a reasonably inexpensive gas source. This means that electricity generation companies are bidding against purchasers who can more profitably utilize inexpensive gas. The end result is the rising price of gas.

Solar and wind will continue on an accelerated growth path. But, when you start with a tiny number, it takes a long while to reach significant size even with a high growth rate. Furthermore, the sun does not shine and the wind does not blow uniformly around the planet. Some generation sites are better than others. Alternative energy is presently on the average considerably more expensive than fossil-fired power.

What about a catastrophic wakeup call from floods, droughts, or other nasty events? Don’t bet on it. There are too many horses in the race and there may not be any way to profit even if some massive program were launched.

· Energy efficiency improvements at existing coal-fired power plants including supercritical combustion and maximum heat extraction and reuse,

· Redesign the existing coal-fired power plants to be net producers rather than consumers of water and to discharge only traces of the air pollutants,

· CO₂ sequestration but only at power plants which can supply oil producers needing enhanced oil recovery.

The profitable market routes are charted in the following McIlvaine publications:

The advent of shale fracturing and new rules relative to the way new wells be “completed” are changing the market for thermal and catalytic oxidizers. The impact of these factors is analyzed in Thermal Catalytic World Air Pollution Markets, published by the McIlvaine Company. (www.mcilvainecompany.com)

There are more than 493,000 operating gas wells in the United States and are most predominantly concentrated (84%) in approximately ten states. These wells feed raw natural gas to approximately 500 gas-processing plants which dehydrate the gas and remove other constituents including hydrogen sulfide (H2S), CO2, nitrogen and natural gas liquids (NGLs) like butane, propane and ethane. The result is “pipeline quality” gas fed into a network of more than 305,000 miles of interstate and intrastate natural gas pipelines with approximately 1,400 compressor stations for pressure boosting prior to delivery to local distribution companies (LDCs) for sale to residential, industrial, commercial and power company users.

Existing and new opportunities for Air Pollution Control (APC) equipment and gas processing equipment are found throughout the value chain from the wellhead to local storage at the LDC. Thermal oxidizers applications include amine tail-gas treatment, nitrogen rejections and LNG processes. The new rules addressing greenhouse gases have both positive and negative impact for suppliers of thermal treatment systems. Emission of untreated gas will no longer be allowed.

Thermal oxidizers convert methane to CO₂. This conversion alone reduces the greenhouse gas impact by a multiple of 29 to 100 depending on the comparison period. Methane is one hundred times more potent than CO_2, but remains as methane for 30 years or less in the atmosphere.

With thermal oxidation and beneficial reuse of the energy, the impact on greenhouse gas combustion is even greater. However, combustion of the gas directly in a turbine is more efficient than a thermal oxidizer and then a steam turbine. If the needed product is process steam, then the oxidizer has a place. New alternatives including micro gas processing to liquids, CNG and LNG areas are gaining interest. The impact on the thermal oxidizer market could be substantial.

The U.S. is a leader in the shale gas and oil extraction. The regulations and approaches used to minimize air pollutants will likely be adopted by other countries as they also exploit this energy source.

Regulations and efficiency are two of the largest factors ensuring the growth of the market for air and water monitoring products to more than $25 billion/yr by 2017. This is the conclusion reached in Air and Water Monitoring: World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

World Region	2017
Total	25,489
Africa	962
CIS	1,249
East Asia	8,936
Eastern Europe	602
Middle East	1,243
NAFTA	5,515
South & Central America	1,517
West Asia	1,839
Western Europe	3,626

East Asia will experience the largest growth. Air and water monitoring revenues will approach $9 billion/yr. NAFTA will exceed Western Europe by nearly $2 billion. The oil and gas activity in the U.S. is generating a direct as well as indirect monitoring market. Shale oil and gas extraction includes monitoring the product, the fracturing fluids and byproducts. The processing of the raw gas requires additional monitoring. Monitoring of water supplies before fracturing establishes a bench mark. Monitoring during and after fracturing detects any contamination caused by the fracturing.

Indirect monitoring revenues will result from the lower cost of energy and the construction of new chemical, fertilizer and metal processing plants. Another positive factor is regulation of toxics. New air regulations imposed on U.S. coal-fired power generators, cement plants and waste incineration operators require measurement of mercury, toxic metals, HCl and toxic organics.

The developing world is increasing its expenditures for ambient monitoring of air and water. This is the first step toward reduction. National as well as local governments are the main customers for these products. Academia and research institutions are major purchasers of air and water monitoring equipment.

Omega Selects GE’s New 2.2-107 Brilliant Wind Turbine for 70 MW Order in Brazil

GE introduced the latest in its line of brilliant wind turbines with the 2.2-107 and announced an order of 32 turbines from Omega Energia in the Piaui region of Brazil. This is the first order for GE’s 2.2-107 wind turbine, which was selected by Omega Energia in the A-5 Brazil energy auction on December 13, 2013.

The 2.2-107 machine is the latest in GE’s line of brilliant wind turbines, which harness the power of the Industrial Internet to analyze tens of thousands of data points every second, helping to manage wind’s variability and provide smooth, predictable power. The turbine is an evolution of GE’s 1.5-megawatt series of turbines and is well suited for Brazil’s wind regime. As part of the contract, GE will provide the operations and maintenance on the 32 turbines for 10 years.

Dominion Awarded $47 Million by DOE for Offshore Wind Turbine Demonstration Project

Dominion Virginia Power has been awarded an additional $47 million from the United States Department of Energy (DOE) to help fund the construction of a 12-megawatt demonstration project, consisting of two 6-megawatt offshore wind turbines on innovative substructures that will produce enough electricity to power up to 3,000 homes.

DOE announced that Dominion was one of three companies – out of seven finalists ―to receive the additional funding. It follows a December 2012 announcement where each of the seven finalists received an initial $4 million in federal matching funds to undertake preliminary engineering, design and permitting activities. The Virginia Offshore Wind Technology Advancement Project (VOWTAP) will be located in federal waters approximately 24 miles off the coast of Virginia Beach, VA. Dominion and the VOWTAP team — including the Virginia Department of Mines, Minerals and Energy — plan to demonstrate innovative technologies to reduce the cost of offshore wind energy.

Martifer Solar, a subsidiary of Martifer SGPS, has entered into a strategic partnership with Citelum, a global leader in public lighting and sustainable urban development.

The companies will work together to provide the municipality of Izamal with clean energy through the combined power of solar photovoltaic energy and LED lighting technology. The project, named Girasol, will be located in Izamal, a municipality within the state of Yucatán, Mexico.

Girasol has been developed through a 15-year contract which exists between Citelum and the municipality of Izamal. Citelum has extensive experience in Mexico and on a global basis with similar urban projects. The company is known to apply innovative and unique financial structures for projects throughout Latin America. Martifer Solar will serve as the EPC contractor for the solar power plant portion of the Girasol project.

The solar PV portion of Girasol will provide the municipality of Izamal with a 1.46 MW ground-mounted installation. The PV plant will be assembled with 4,860 polycrystalline modules in a fixed position. It will be built on land of approximately 10,000 m², which has been donated by the municipality of Izamal. With a production capacity of 2.1 GWh/year, the plant will avoid 955 tons of CO₂ emissions each year and provide the equivalent to the energy consumption of 4,595 inhabitants on an annual basis.

The Girasol project is unique in that the power generation from the 1.46 MW solar PV installation will supply energy to power the comprehensive LED lighting portion of the project. Citelum will ensure the complete renovation of the existing street lights to more efficient LED technology, the upgraded illumination around the municipal buildings and video mapping to promote tourism to Izamal. This project will make Izamal the first municipality in Mexico to have a solar PV system generating energy to supply a public LED lighting project.

Ascent Solar Technologies, Inc., a manufacturer and developer of state-of-the-art, flexible thin-film photovoltaic (PV) modules, along with Silent Falcon UAS Technologies (SFUAS), announced the successful first flights of the production Silent Falcon™ Unmanned Aircraft Systems (UAS) powered by Ascent Solar’s ultra-lightweight, flexible photovoltaic modules. Silent Falcon™ UAS, jointly developed by SFUAS, Bye AEROSPACE and Ascent Solar, is a tactical drone designed to be easily deployed, and integrates proprietary, disruptive technology to deliver superior UAS performance.

The patent-pending Silent Falcon is a solar/electric powered, all composite and modular small Unmanned Aircraft System (sUAS) equipped with an interchangeable wing configuration designed for commercial, public safety and defense applications both domestically and internationally. The combination of efficient aerodynamic design, lightweight composite construction and Ascent’s monolithically integrated and ultra-lightweight thin film photovoltaic modules, enables the 25 lb. Silent Falcon™ UAS a remarkable 6 to 12 hour flight endurance.

Pattern Development Receives Final FERC Approval for Southern Cross Transmission Project

Achieving a key milestone in the Southern Cross transmission project, Pattern Energy Group LP (Pattern Development) announced that the project has obtained final regulatory approval from the Federal Energy Regulatory Commission (FERC). Pattern Development is developing the Southern Cross project to add a High Voltage Direct Current (HVDC) transmission tie between ERCOT in Texas and the transmission grid deep in the southeastern United States by 2019.

· MoU signed by BHEL and PT Star Vyobros, Indonesia for 200 MW Coal-fired Power Plant

· Yokogawa to supply Control Systems for Saudi Arabia’s first Supercritical Oil-fired Thermal Power Plant

· Mega Coal-fired Power Plants planned in Myeik, Bokepyin, Myanmar

· Tata Power barred from 1.000 MW Coal-fired Power Plant Tender

· Mott MacDonald appointed technical adviser by China’s United M&E Investment for 158 MW Combined Cycle Power Plant in Monterrey, Mexico

· Siemens and Marubeni hand over Wang Noi 4 Power Plant to EGAT in Thailand

· Advanced Emissions Solutions receives Notice from NASDAQ Due to delayed Filing of Form 10-Q

· SPC exercises “right to top” bid, wins Naga Coal-fired Power Plant, Cebu, Philippines

Large numbers of power plants in China and other countries where water is scarce have chosen dry cooling over the wet option. Surprisingly the dry route has been chosen by some developers in regions where water is plentiful. The reason cited is the need for quick environmental approval and the avoidance of the delay in obtaining water permits.

A webinar on June 5 at 10 a.m. Central time will be in a discussion format. All the factors which should be considered in making the wet/dry choice will be addressed with the aid of the following panelists.

Jason Rowell, P.E., Thermal Performance Section Lead, Black & Veatch Energy Division

Jessica Shi, Ph.D., Senior Technical Leader/Manager, Technology Innovation Research for Water Conservation, EPRI

Barbara Carney, Chemical Engineer, Department of Energy National Energy Technology Laboratory

A free website focused just on cooling is being prepared. Material on this site will be available to the participants prior to the session and will be used to aid the discussions during the session. This site is one of many which are shown at: Continuous Analyses

This will be the first of a continuing series of webinars on cooling. The website will address alternatives to cooling towers such as cogeneration and beneficial heat use for Recirculating Aquaculture Systems, cellulosic ethanol and various cogeneration opportunities including co-locating municipal sewage treatment and power plants.

This first webinar will be free-of-charge to anyone. Future webinars in the series will be free to power plants and subscribers.

To register for the free “Hot Topic Hour” on June 5, 2014 on “Wet vs. Dry Cooling” click on:

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 5, 2014	Wet vs. Dry Cooling (Free to everyone)	Surprising number of ACC’S. Why?
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*

· Yokogawa to supply Control Systems for Saudi Arabia’s first Supercritical Oil-fired Thermal Power Plant

· Mega Coal-fired Power Plants planned in Myeik, Bokepyin, MyanmarDetails

· Tata Power barred from 1.000 MW Coal-fired Power Plant Tender

· Mott MacDonald appointed technical adviser by China’s United M&E Investment for 158 MW Combined Cycle Power Plant in Monterrey, Mexico