Power Air Quality Insights No

Power Air Quality Insights
No. 160 June 5, 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.

· 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

The “Clean Power Plan” just announced by EPA relies on improving energy efficiency at old coal-fired power plants. That is the equivalent of trying to make a twenty year old gas guzzler as efficient as a 2014 model hybrid. The clear choice is to scrap the gas guzzler and buy a new car. This is also the obvious way to meet the EPA goals relative to coal-fired power. In fact, the new coal-fired power plant solution is a win-win situation for all sides because:

· Because of the twenty-five year optimum life of a coal-fired power plant, there will be a whole new set of options in 2045.

This concept is not unique. In fact, Europe and a majority of the other countries have been replacing old inefficient coal-fired power plants with new ones. Even China has adopted this as a foundation of its greenhouse gas strategy. This strategy should appeal to environmentalists because of lower CO₂emission. It also eliminates the potential for increased coal use and puts the focus on using less coal more efficiently.

Since all sides benefit, there is every reason for agreement, fast track sitting of new power plants and simultaneous retirement of old power plants.

The “Clean Power Plan” proposed by the Obama Administration seeks to achieve a 30 percent reduction in CO₂ emissions from existing electric generating units by 2030 based on a 2005 baseline. States must show “meaningful progress” by 2020. With a strategy of coal-fired power plant replacement, this progress and compliance with the timelines will be assured.

The air pollution impact of upgrading the old fleet to supercritical efficiency would be a reduction equivalent to 2.4 billion tons of CO₂. The validity of this calculation is easily determined by using the EPA cost justification values. CO₂, various air toxics and each criteria pollutant is assigned a monetary value, so this creates a common metric. There are other environmental benefits. The upgraded coal-fired power plants would not generate the water and solid waste caused by the old power plants. So total environmental impact would be the equivalent of 5 billion tons of CO₂

Many existing coal-fired power plants are so situated as to challenge the designer of the upgrade. However, there are many new developments which will make on-site replacements or upgrades relatively easy and very beneficial. They include:

· Use of vertical space. The average power plant already has stacks many hundreds of feet high. Kiewit has an innovative use of the grain tower design to build 80 foot diameter modules which are 400 feet high. So innovations such as this will result in cost effective upgrades.

· Upgrades/replacements are more efficient and, therefore, produce more electricity for a given footprint.

· Use of new technology such as catalytic filters. This filter combines particulate filtration and NO_x reduction in one unit greatly reducing space requirements and retrofit costs.

· Use of treated municipal wastewater for cooling and other purposes. Nearly all existing power plants are within 70 miles of enough treated municipal wastewater to supply their water needs.

· Zero liquid discharge systems. Upgraded power plants will not have water discharges.

· Co-generation and reduction of emissions from other sources. Great Rivers Energy has Blue Flint ethanol plant on-site. The ethanol plant has no boiler and no emissions since it uses waste heat from the power plant.

· Supplementing coal with other fuels for optimum cost and environmental improvements. Gasified municipal waste and biomass can be used as re-burn fuels and reduce NO_x.

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

The market for particulate scrubbers will be shrinking, while the market for adsorbers will grow robustly. Hot gas filtration will completely change the dry scrubber offerings. Scrubber Revenues in 2014 are projected at $7.2 billion. These are the conclusions reached by the McIlvaine Company in Scrubber/Adsorber/Biofilter World Markets. (www.mcilvainecompany.com)

Subject	2014	Growth Trends
Total	7,220	Some segments will grow faster
Absorber	3,284	Positive impact from oil and gas
Adsorber	1,394	Positive impact from oil and gas
Biofilter	550	Odor treatment is a winner
Dry Scrubber	573	Hot gas filtration will be huge
Other	278	Condensation will be high growth
Particulate	1,141	Market will shrink

Overall growth will average only slightly above GDP, but certain segments will experience robust growth. Individual companies can take advantage of new technologies to generate high margins with unique products. The hot gas filter scrubbing process is one such technology.

Instead of using a wet absorber, sorbent is injected ahead of a catalytic filter. One of the big advantages is clean hot gas from which the heat energy can be easily extracted.

EDF EN Canada and Enbridge Announce 300 MW Blackspring Ridge Wind Project Commissioned in Alberta

EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles, and Enbridge Inc., announced that the 300 megawatt (MW) Blackspring Ridge Wind Project declared commercial operation on May 12, 2014.

The Blackspring Ridge Project, located in Vulcan County, Alberta (50 km north of Lethbridge), started construction in May 2013 and is comprised of 166 Vestas V100-1.8 MW wind turbines. With an investment of about CAD $0.6 billion, the project represents the largest investment in wind energy in Western Canada. More than 350 jobs were created during the construction phase with 20 permanent operations and maintenance jobs.

Renewable Energy Credits (RECs) generated from the project are contracted to Pacific Gas and Electric under a 20-year purchase agreement. The electricity will be sold into the Alberta power pool.

The Alberta-based Climate Change and Emissions Management Corporation committed CAD $10 million in support of the project.

SolarReserve, a leading global developer of utility-scale solar power projects and advanced solar thermal technology, announced that two 75-megawatt (MW-DC) solar photovoltaic (PV) projects have completed construction and are fully operational and successfully helping to power the Eskom South African electric grid with renewable energy.

The Lesedi and Letsatsi Projects, totaling 150 MW-DC of installed capacity, are capable of powering more than 130,000 South African homes with clean energy and have provided significant economic benefits to the region. Combined, the two projects generated 2.3 million man-hours during construction. As mandated under the South African Renewable Energy Independent Power Producer Procurement Program (REIPPPP), the projects set aside a percentage of total project revenues for enterprise and socio-economic development, which will be invested for the benefit of the local communities.

Among the largest project finance transactions ever completed in South Africa and largest renewable energy projects in continental Africa, the Lesedi Project and Letsatsi Project, each respectively located in the Northern Cape and the Free State, were selected by the South Africa Department of Energy (DOE) in the first round of bids under the REIPPPP. The projects have each executed 20-year power purchase agreements with Eskom, the South African power utility company.

Xcel Energy and SunPower Corp. have signed a power purchase agreement to build a 50-megawatt solar photovoltaic (PV) power plant in Colorado's San Luis Valley. Xcel Energy estimates that the plant will generate enough electricity to serve the needs of approximately 13,500 average Colorado homes.

Construction of the solar power plant is contingent on the project securing all required permits, interconnection rights and financing. SunPower expects to start construction in 2015, and to achieve full commercial operation by the end of 2016. An estimated 100 jobs will be created at peak construction.

At the 320-acre site, SunPower will design and 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

Bluesphere Receives Important Air Emissions Permit for 5.2 MW Waste to Energy Project in Charlotte, NC

Bluesphere Corp, a clean energy company that develops, manages and owns waste-to-energy projects, announced that Mecklenburg County has issued the company an air emissions permit for its 5.2 MW waste-to-energy project in Charlotte, NC. Obtaining the air emissions permit is a requirement prior to build-out and operations at the plant. The permit signifies that the 5.2 MW waste-to-energy plant meets stringent local, regional and national environmental emissions regulations.

Bluesphere is the project owner, developer and manager for this 5.2 MW organics-to-energy anaerobic digester. The facility will intake organic waste such as food and farm waste that would normally go into landfills. The organic waste is processed in an anaerobic digester to emit biogas, which then is turned into electricity and compost is a by-product. The facility generates revenues from intake of organic waste, as well as the sale of clean, renewable electricity, and the sale of compost.

Rockline Industries Installs Nation’s Largest Geothermal Heating and Cooling System for Use in a Production Facility

Rockline Industries announced that it has installed the nation’s largest single geothermal heating and cooling system for use in a production facility. The 1.2 million square foot plant, located in Booneville, AR, is the first and only production facility to be heated and cooled by geothermal technology and is expected to reduce Booneville’s reliance on overall energy and natural gas by 65 percent.

The transition from a conventional HVAC system to a geothermal system is expected to help Rockline reduce company-wide greenhouse gas emissions by 25 percent. This will significantly exceed the five-year Rockline goal of reducing greenhouse gas emissions by 15 percent by the end of fiscal year 2015.

§ Expansion of Mariveles, Bataan, Philippines Coal-fired Power Plant Set to Start

§ Production imminent: Coal Mining and Power Project on Track, claims SECMC

· § New Gas-fired Power Plant planned for Carlsbad, CA

· § L&T receives Orders worth $480 Million in Bangladesh for Two Gas-based Power Plants

§ DTE Energy sells Marysville Coal-fired Power Plant (Michigan) to Commercial Development

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

“Heat recovery steam generators” is the “Hot Topic” on June 12. Next Thursday at 10 a.m. there will be a discussion of the choices power plants need to make regarding HRSGS used with gas- and oil-fired turbines in combined cycle operation. These choices include design, operation, reliability, maintenance and service life related to:

· Operation of a HRSG originally designed for base load operation in a cyclic mode

· Type of HRSG (Once-Through, Drum, Vertical) and their applicability to various applications

Issues can include operation in various climates (desert to winter conditions), use of bypass systems, impact and control of water chemistry, supplemental firing, flow-accelerated corrosion and corrosion control, thermal stresses and fatigue, causes, detection and avoidance of tube failure and capital and operating costs.

Kelly Flannery and Deron Johnston, Vogt Power International, Inc. (Vogt-NEM, Inc.) Subsidiary of Babcock Power

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*

§ Production imminent: Coal Mining and Power Project on Track, claims SECMC

· § New Gas-fired Power Plant planned for Carlsbad, CA