Power Air Quality Insights No

Power Air Quality Insights
No. 167 July 24, 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.

· “Mercury Sorbent Options” “Hot Topic Hour” On July 31^st Will Focus On the Dry Sorbents Which Are Used To Capture Mercury

There is the potential to upgrade existing gas turbine plants by converting them to combined cycle operation. The cost will be $200 billion and will add 160,000 MW of additional capacity while reducing CO₂ and other pollutants per unit of power produced. This is the conclusion reached by the McIlvaine Company in Gas Turbine and Combined Cycle Supplier Program. (www.mcilvainecompany.com)

The United States has been upgrading existing power plants and reducing emissions per unit of energy produced. CO₂ emissions from U.S. power plants in 2013 were 20 percent lower than 1997 levels, thanks to the shift to CCGT technology. Reductions in NO_x and SO₂ emissions were even greater, dropping 40 percent and 44 percent, respectively. This is due to the installation of additional emission control equipment.

The GRF Tracy San Joaquin County conversion from 169 to 314 MW cost approximately $232 million or 1372/kW based on the simple cycle rate. From a different perspective, 145 additional MW will be generated at a cost of $1600/kW. The average cost, worldwide, is forecast by McIlvaine at $1000/kW of single cycle operation. There are presently 1.1 million MW of installed gas turbine capacity in the world. There is the potential to add combined cycle operation to 200,000 MW at an investment of $200 billion.

The Rolling Hills Generating Facility in Vinton County, Ohio is proposing to convert from a simple cycle. The current facility utilizes five natural gas-fired combustion turbines. The conversion would require expansion and redevelopment of the current generating facility, adding four heat recovery steam generators and two steam generators to four of the combustion turbines. One combustion turbine would remain as a simple cycle unit. The capacity will expand from 860 MW to 1,414 MW. The proposed conversion is estimated to cost $865 million ($1000/kW). Conversion of the plant would use all five of the existing Siemens 501FD2 natural gas-fired combustion turbine generators. The combustion turbine remaining in simple cycle configuration would have a nominal output of 172 MW. Four of the five combustion turbines would be coupled to Heat Recovery Steam Generators (HRSGs) and each would be equipped with 550 million British thermal units per hour (MMBtu/hour) duct burners. Each pair of gas combustion turbines would be combined with HRSGs and a steam turbine generator set to create 2 x 1 power blocks, each with a nominal output of approximately 621 MW. This company is affiliated with Tenaska Capital Management LLC.

Tampa Electric Polk station is converting four units to combined cycle operation and will increase generating capacity to 1400 MW. SCR will also be installed on all units. The project started earlier this year and will be completed in 2017.

The Empire District Electric Company (Empire District) owns and operates the Riverton Power Station) located in Riverton, Kansas. It currently consists of two boilers and four simple cycle combustion turbines. The combined cycle unit will have a nominal capacity of 250 MW. This will require the addition of a heat recovery steam generator (HRSG) with supplemental natural gas duct firing (duct burners) and a condensing steam turbine generator. The project also includes a cooling tower and an emergency diesel generator. An SCR will control NO_x and a CO catalyst will control carbon monoxide (CO) and volatile organic compound (VOC).

Siemens has been awarded the contracts for the combined cycle conversion of two simple cycle power plants in Argentina by Unión Temporal de Empresas (UTE) a joint venture between Isolux Ingeniería and Inversora Andina Ibérica. The simple cycle plants, Ensenada de Barragán and Brigadier López, were originally designed and supplied by Siemens and are owned by Argentina's national energy company, ENARSA. Siemens will supply the power island equipment to close the combined cycles for these two plants, which will result in an additional 140 MW of power for Brigadier López and 280 MW additional for Ensenada de Barragán with no additional fuel consumption. The power plants are scheduled to achieve commercial operation in the fall of 2014.

AES Dominicana has selected Tecnicas Reunidas of Spain to lead the project to convert Dominican Power Partners’ (DPP) power generating asset to combined-cycle. The conversion project will raise the current plant output from 210 MW to 324 MW.

In Saudi Arabia the 1300 MW Riyadh City simple cycle plant is being converted to combined cycle operation. Some units are already installed and the rest will be operating by middle 2015. The upgrades include:

Kawasaki has converted a number of plants from simple to combined cycle. These include:

Malaysia/Gelugor
GE Frame 9E x 2 converted to Combined Cycle
Myanmar /Ahlone
GEC-Alsthom Frame 6 x 3 converted to Combined Cycle

Black & Veatch has executed the design and construction of several combined cycle conversions

including a conversion to a 2 x 1 configuration in California involving “F” class turbines and a conversion to a 3 x 1 configuration in Malaysia involving “E” class turbines.

For more information on the Gas Turbine and Combined Cycle Supplier Program, click on:

Sales of air filters for commercial and institutional buildings will reach just under $2 billion in 2015. This is the conclusion of the McIlvaine Company in Air Filtration and Purification World Market. (www.mcilvainecompany.com)

World Region	2015
Total	1,965
Africa	56
CIS	87
East Asia	674
Eastern Europe	41
Middle East	44
NAFTA	586
South & Central America	40
West Asia	69
Western Europe	368

China is the world’s leading purchaser of commercial filters. This is due to several factors. One is the high rate of growth of the commercial building industry. Another is the high particulate levels in ambient air. This results in more rapid filter replacement than in countries with relatively clean air.

The Chinese construction industry recorded a nominal CAGR of 19.99 percent in 2009–2013. The infrastructure and residential markets collectively accounted for 72.3 percent of the total construction industry in 2013 and are expected to grow at 9 percent CAGR due to increased public investment, urbanization and the strong demand for housing.

Twenty years ago the U.S. was the center for HVAC, but now China holds the number one position.

In terms of air conditioning unit sales in China, Japanese manufacturers Daikin, Hitachi, Toshiba and Samsung command more than 30 percent of the market. Daikin also owns AAF and is one of the largest air filter manufacturing companies in the world. Western companies York, Carrier, Trane and Dunham-Bush have more than 25 percent market share for air conditioners in China. Haier, Gree and Midea account for more than 20 percent of the market.

Other suppliers are Hisense, Panasonic, Kelong, Glaze, Aux, Chigao, Mitsubushi, Samsung, Changhong, Chunlan, TCL, Hitachi, Sharp, Fujitsu General, Sanyoo and LG.

China can be divided into five climatic zones, each of which has different filtration needs:

· Severely cold, e.g. Heilongjiang province, where heating is very important for most of the year,

· Cold, e.g. Beijing, where heating is necessary from October to March, while cooling in summer is not a big problem,

· Hot in summer and cold in winter, e.g. Shanghai and nearby provinces, where cooling in summer and heating in winter are necessary,

· Warm, e.g. Guangdong and Fujian provinces, where heating is not necessary and cooling is needed in summer,

Buildings contribute up to 25 percent total energy consumption in China. (Sixty percent is for heating and cooling.)

The fast economic development and the increasing living standards of people in China have prompted a new wave of building construction. Since the year 2000, 1.5 billion m²area of buildings have been built every year, and this is projected to continue until the year 2020. International companies are now conducting research in China. In Feb. 2004, Trane founded its R&D center in Shanghai. York founded its Asia Pacific R&D center in Nov. 2004 in Wuxi. The Carrier R&D center started to function in 2006.

Air filters are used in both the central HVAC systems and for room air conditioners. One of the trends boosting revenues is the trend to select the more efficient and expensive F5-9 filters as opposed to the less expensive and efficient H1-4 design. Concerns about air pollution and health have influenced Chinese building owners to upgrade to more efficient filters. Another driver is energy consumption. Dirt on air conditioner coils increases energy consumption.

EDF EN Canada and Enbridge Dedicate the 300 MW Blackspring Ridge Wind Project

EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles, and Enbridge Inc. dedicated the 300 megawatt (MW) Blackspring Ridge Wind Project. Located in Vulcan County, Alberta, the project is the largest investment in wind energy in Western Canada.

Construction of the 166 turbine project commenced in May 2013 and reached commercial operation twelve months later in May 2014. Mortenson Canada served as the construction contractor.

With an investment of about $0.6 billion, Blackspring Ridge generates enough clean energy to meet the electricity needs of about 140,000 Albertan homes.

"The Blackspring Ridge project is a joint effort between industry and government that demonstrates Alberta's commitment to renewable energy development," said Alberta Energy Minister Diana McQueen. "The Government of Alberta is proud to support state-of-the-art projects, like Blackspring Ridge, as we work together to green the grid in Alberta.

RES Americas Secures Project Financing for the Border Winds and Pleasant Valley Wind Projects

Renewable Energy Systems Americas Inc. (RES Americas), a leader in the development and construction of wind, solar, transmission, and energy storage projects in the Americas, announced it has reached financial close of a $222 million construction loan for the 150 MW Border Winds Project in Rolette County, ND and a $286 million construction loan for the 200 MW Pleasant Valley Wind Project in Mower and Dodge Counties, MN.

RES Americas is the developer and engineering, procurement, and construction (EPC) contractor of Border Winds and Pleasant Valley projects which will utilize 175 V100-2.0 MW Vestas turbines. Upon completion, RES Americas will transfer the projects to Xcel Energy which will own and operate them.

SPI Solar Subsidiary Announces Agreement to Build and Develop 50 MW PV Project in Fenyi County, China

CSPI Solar, a vertically integrated photovoltaic solar developer, announced that its wholly-owned subsidiary, Xinyu Xinwei New Energy Co., Ltd. (Xinwei), has signed an agreement with the government of Fenyi County (Jiangxi Province, People's Republic of China) to build and develop a 50 megawatt (MW) photovoltaic (PV) project in Yangqiao, Fenyi County. Once completed, the 50 MW project is expected to be one of the largest utility-scale PV projects in Jiangxi Province.

Under the terms of the agreement, the government of Fenyi County will provide certain guarantees and support to Xinwei for the project's construction and development phases, in addition to offering certain incentives and other services for the project's later phases leading up to grid connection. Moreover, the government of Fenyi County has signaled its intent to participate actively in coordinating all relevant local and provincial departments to facilitate and expedite construction of the project.

ET Solar Modules Selected to Power Projects Totaling 24.5 MW in North Carolina

ET Solar Energy Corp., a leading smart energy solutions provider, announced that its high efficiency PV modules will power six utility scale projects throughout the state of North Carolina, with a combined capacity of 24.5 MW.

FLS Energy, a full service solar energy provider, will finance, design, construct, own and operate the portfolio of projects. The solar energy power plants will use a total of 81,833 modules and power approximately 3,200 North Carolina households. Installation is scheduled to be completed by the end of the 3rd quarter of 2014.

Toshiba to Supply Steam Turbine and Generators for One of World’s Largest-Class Geothermal Power Plant Projects

Toshiba Corporation announced that is has been awarded a major contract to supply 3 x 60-megawatt geothermal steam turbines and generators (STG) for one of the world's largest geothermal power plants, the Sarulla geothermal power plant project, which is now under construction in Tapanali Utara in Indonesia's North Sumatra.

Toshiba was awarded the contract by Sarulla Operations Ltd. (SOL), a four-company consortium of Itochu Corporation and Kyushu Electric Power Co. Inc. of Japan, PT Medco Power Indonesia of Indonesia, and ORMAT International, Inc. of the U.S.A. The engineering, procurement and construction (EPC) contractor is Hyundai Engineering and Construction Co., Ltd. (HDEC). Toshiba will start to supply STGs to HDEC in July 2015, and the plant is scheduled to start operation in November 2016. Its output will account for approximately 1 percent of Indonesia's total power generation.

Indonesia has the world's second largest geothermal resources, a potential generating capacity of 28,000 MW, but installed capacity to date is a low 1,300 MW. With growth driving demand and shortfalls in supply, the Indonesian government is promoting geothermal power as a means to raise generating capacity and reduce reliance on oil, where demand outstripped local production in 2004. Government plans include IPP projects with a capacity of 12,000 MW by 2025, which the Japanese government is supporting through its yen loan program.

· B&W awarded Contract for Dominican Republic Coal-fired Boiler Project

· MHI receives Order for Combustion CO₂ Capture System for EOR Project in Texas

· Fuel Tech awarded Air Pollution Control Orders totaling $2.8 Million

· Coal-fired Power Generators to spend $400 Billion on New Plants and Upgrades Next Year

· Asia will account for 43 Percent of the Air and Water Monitoring Market Next Year

· Notice of Lodging of Proposed Modification of Amended Consent Decree under the Clean Air Act (Federal Register)

· LiqTech International, Inc. receives Order using its Silicon Carbide (SiC) Membranes for the removal of Heavy Metals from Power Plant Wastewater

· Gas Turbine Emission Control Webinar, July 17^th raised challenges with CO and Lower Quality Fuels

“Mercury Sorbent Options” “Hot Topic Hour” On July 31^st Will Focus On the Dry Sorbents Which Are Used To Capture Mercury

The discussion will be based on presentations posted on a dedicated website: Mercury Removal - Continuous Analyses. The specific topics will be oriented toward high absorbent and provides the best combination of cost and efficiency?

How important is flyash salability and how does this affect the decision making?

• If a precipitator rather than baghouse is in place, how much more carbon will be needed?

• Will activated carbon recirculating in a wet FGD allow mercury separation from gypsum and wastewater?

Steve Feeney, National Sales Manager, Aftermarkets, Babcock & Wilcox Power Generating Group

Stephen (Stephen) Potter, Senior Engineer, Duke Energy Corporation Carolinas

Mark Pastore, VP Clean Coal Solutions, Environmental Energy Services, Inc./ EESI

Kyle Neidig, SCR and Catalyst Product Manager, Mitsubishi Hitachi Power Systems America, Ltd. America, Ltd.

Robert Broglio, Senior Manager, Business Development, NAES Engineering & Construction Group

For the complete Hot Topic schedule and registration information see below. The webinar on July 31 is free to power plant operators and McIlvaine subscribers. There is a charge for others.

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
	July
	31		Mercury Sorbent Options
	August
	7		MATS Timing and Technology Options
	14		Industrial Boiler and Cement MACT Timing and Compliance Options
	21		MEGA Symposium
	28		Demineralization and Degasification
	September
	4		Hot Gas Filtration
	11		Power Plant Pumps
	18		Power Water Monitoring
	25		Power Plant Water Treatment Chemicals

· B&W awarded Contract for Dominican Republic Coal-fired Boiler Project

· Fuel Tech awarded Air Pollution Control Orders totaling $2.8 Million