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·
FGD Upgrades Will Assure a $5 Billion Annual Market
·
Renewable Energy Briefs
·
Utility E-Alert Headlines –August 1, 2014
·
“Industrial Boiler and Cement
MACT Timing and Compliance Options” is the Hot Topic on August 14th
FGD Upgrades Will Assure a $5 Billion Annual Market
Revenues for FGD suppliers will average about $5 billion per year over the next
five years. This will be split between upgrades of existing systems and new
systems. This is the latest forecast in McIlvaine
FGD Market and Strategies
. (www.mcilvainecompany.com)
Traditionally, most of the market has been for new systems. The maturity
of the market is established with the even split between new systems and
upgrades by 2020.
FGD Supplier Revenues ($
Billions) |
||
Segment |
2015 |
2020 |
New Systems |
4 |
2 |
Upgrades |
2 |
2 |
The major markets for new FGD are now in Asia. More than 70 percent of the
new FGD orders in 2015 will be placed for Chinese power plants.
There is a large market developing to upgrade existing FGD systems. The
biggest upgrade market will be China. The government has identified
100,000 MW of FGD which must be upgraded. Adding an extra spray section
will be one of the upgrade measures.
This forecast does not include consumables such as lime and limestone.
Expenditures for these consumables have risen steadily and will continue to do
so at a rate of approximately 5 percent per year until 2020. After
2020, consumables expenditure growth will slow as the number of new coal-fired
power plants built each year will be reduced and there will be increasing
retirements of coal-fired power plants in Europe and the U.S.
This forecast is based on the assumption that a greenhouse gas reduction
program is implemented. There are mixed signals regarding the future of
this program. The U.S. has proposed a carbon trading program for
coal-fired power plants which will result in retirement of nearly 50,000 MW of
coal-fired capacity (20% of the existing fleet). Australia has just
repealed its carbon tax citing the high cost and lack of perceived benefits.
This forecast is also based on the continued success of the program to extract
gas from shale. As long as gas prices remain at around $4-5/MMBtu, gas will be
the preferred fuel for new power plants. The U.S. is likely to generate
all the gas it needs internally and will be able to export some quantity.
China has launched a big program to produce gas from coal. This gas will
be transported across the country and will fuel gas turbine plants in Eastern
cities.
The Chinese gas-to-coal program will have the effect of reducing the longer
range traditional FGD market. However, a very large air pollution market
will be created to capture the H2S and particulate caused by the coal
gasification process.
For more information on
FGD Market and Strategies,
click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/107-n027
Renewable Energy Briefs
SCE to
Buy More Than 1500 MW of Renewable Power
Southern California Edison (SCE) has signed contracts with solar and geothermal
energy producers representing more than 1,500 megawatts of clean, renewable
power. Signed contracts include the purchase of more than 1,300 megawatts of new
solar power and the re-contracting of 225 megawatts with an existing California
geothermal energy project.
"SCE is
committed to continuing to bring renewable power resources to our customers and
helping achieve California's environmental goals," said Stuart R. Hemphill, SCE
Senior Vice President, Power Supply and Operational Services. "These agreements
will help us maintain diversity in our renewable energy portfolio."
These
contracts resulted from an open and competitive process for all renewable
resources designed to promote market development, contain costs, diversify power
sources and help to meet the state's 33 percent Renewables Portfolio Standard
goals. While solar is one of the fastest-growing renewable types and becoming a
larger part of the state's renewable mix, SCE and other utilities have large
portions of their renewable energy in the form of geothermal and wind
generation. SCE's re-contracting with an existing geothermal project reflects
the utility's commitment to cost effective and diverse renewable energy.
SunPower Breaks Ground on 135 MW Quinto Solar Plant
SunPower Corp. announced it has started construction on the 135-megawatt Quinto
Solar Project in Merced County, CA. The system will generate power for Southern
California Edison's customers, under a long-term power purchase agreement.
In accordance with the company's recently announced holdco strategy, SunPower
expects to own and operate the solar power plant during construction.
Including the Quinto power plant, SunPower has more than 500 megawatts of
residential, commercial and utility solar assets under contract around the world
that it may choose to own for a period of time before a strategic sale or
continue ownership post-construction during the operational phase of the
project. Under this holdco strategy, SunPower expects to improve project margins
and drive higher shareholder returns by capturing the material benefit of its
lower system degradation rates, long term project life as well as benefitting
from distributions from the project as an equity owner.
SunPower anticipates that about 295 jobs will be created during peak
construction of the project, with approximately $80 million in local economic
impact. The company estimates that more than $5 million of tax revenues will
also be generated as a result of the project. After completion, which is
scheduled for late 2015, the Quinto project is expected to generate enough
electricity for 40,000 homes.
SunPower is constructing a SunPower® Oasis® Power Plant system at the
approximately 1,000- acre site. 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.
CBD
Energy Secures 64 MW Solar Project in Thailand
CBD
Energy Limited, a diversified clean energy company and leading global provider
of solar systems, announced an agreement with Environmental Engineering Group
Thailand (EEG) to construct a 64 MW solar park with a projected development cost
of approximately $112,000,000. The project is supported by a 25-year power
purchase agreement with the Thai Provincial Electricity Authority.
Everbright International Introduces a New Era of “Complete Incineration and No
Landfills” in Suzhou City
China
Everbright International Limited announced that the expansion project of Phase
III of the Suzhou Waste-to-Energy Project passed the “72 +24” hour trial
operation assessment on January 14, 2013, two and half months ahead of the
scheduled commercial operation date, introducing a new era of household waste
“Complete Incineration and No landfills” to the Suzhou Municipality.
Mr.
Chen Xiaoping, Chief Executive Officer of Everbright International, said “With
the Suzhou Phase III Project starting commercial operation, the Suzhou Project
has a total daily waste processing capacity of 3,550 tons and is the nation’s
largest waste-to-energy plant with the highest operational standards.
PG&E
Celebrates 30 Years of Operations at Helms Pumped Storage
Pacific
Gas and Electric Company (PG&E) marks 30 years of commercial operation at Helms
Pumped Storage Project (PSP). The hydroelectric facility was considered an
engineering marvel when it was built and came on line in 1984, and continues to
play a vital role today as well in California’s clean energy future.
Helms
operators can take the plant from an idle state to full generation in eight
minutes. That ability to quickly ramp up and down plays a key role in
integrating intermittent renewable resources such as wind and solar onto the
power grid, said John Conway, PG&E Senior Vice President for Energy Supply.
Nestled
high in the Sierra Nevada Mountains about 50 miles east of Fresno, Helms
features two reservoirs and three hydro pump-generators. The generators can
produce a total of 1,212 megawatts of electricity.
During
times of high electric demand, water flows downhill from Courtwright Lake at the
higher elevation (8,200 feet) through the powerhouse. When there is excess
generation online, the pumps can be reversed, pushing the water uphill from Lake
Wishon at the lower elevation (6,500 feet) to recharge the upper reservoir.
For more information on Renewable Energy Projects and Update,
please visit:
Headlines for Utility E-Alert – August 1, 2014
UTILITY E-ALERT
#1185 – August 1, 2014
Table of Contents
COAL – US
COAL – WORLD
GAS/OIL
– WORLD
CO2
NUCLEAR
·
Vermont Yankee
Nuclear Power Plant may shut down December 29
·
Westinghouse
hopes for Nuclear Power Plant deal in Bulgaria
·
Rosatom signs
MOU to build Floating Nuclear Power Plants with China
BUSINESS
·
Berkshire
Hathaway Application to buy AltaLink receives Preliminary Approval
·
Mitsubishi
Hitachi Power Systems to merge with Babcock-Hitachi
·
URS and Mobotec
bring Proven NOx Control Technology to the US Coal-fired Power
Industry
·
Mercury Removal from Natural Gas and
Industrial Stacks will generate Billions of Dollars in Annual Revenues for
Solutions Providers
·
Upgrading Coal Plants around
the World is the Best and Quickest Way to Reduce CO2
HOT TOPIC HOUR
·
Many Mercury Sorbent Options discussed in
Hot Topic Hour July 31
·
“MATS Timing and Technology Options” is the
Hot Topic on August 7, 2014
·
Upcoming Hot
Topic Hours
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
“Industrial Boiler and
Cement MACT Timing and Compliance Options” is the Hot Topic on August 14th
Operators of cement kilns and industrial boilers are in the process of making
final decisions relative to mercury, HCl and toxics reductions. This webinar
will help these operators compare the many options which are available.
The webinar will explore technology options including some very recent
developments. The catalytic filter and the post scrubbing mercury module
are two newly proven technologies. The decisions on upgrading
precipitators or installing fabric filters, using dry or wet scrubbers, and
whether to use sorbent traps or mercury CEMS all have to be made.
Another question is how much time is left to make these decisions? There
is also the uncertainty regarding future regulations and whether to adopt
technologies which provide flexibility. One flexible approach is to invest
in lower cost technology with the potential to upgrade. Australia just
abolished its carbon tax while the U.S. administration is talking about more CO2
reductions. So the strategy for MACT compliance has to factor in the regulatory
uncertainties.
The webinar will be collaborative. A series of questions will be
discussed. The program will be enhanced and initiated with a few short
presentations by experts. The sequence will be based on a unique concept which
compares the decision process to travel through a maze.
The large number of uncertainties makes it difficult to determine a course of
action to deal with the Cement and Industrial Boiler MACT Standards. You
may initially reject plant retirement as a solution, but as the cost of the
compliance options mount, you may have to revisit that decision. You may
make a tentative decision to use wet scrubbing, but then find that the water
pollution control costs make this unattractive. A dry scrubber may look
attractive until you evaluate the restrictions on flyash sales and landfill
costs. The result is that the MACT decision process is complex and can be
likened to a maze.
The upcoming webinar will provide the equivalent of a GPS system to negotiate
the maze. It could be called the MACT Global Decisions Positioning System™
(GDPS).
MACT GDPS
GETTING STARTED
The first step is to identify all the resources to help you in the decision
making. McIlvaine has a number of free sites which explain each of the
control options. They are displayed at
Continuous Analyses.
Another good resource is the Council of Industrial Boiler Owners (CIBO).
They have some valuable summaries of the requirements. All the information
on issues is shown at:
http://www.cibo.org/issues.htm.
The comparisons for proposed and final limits for each pollutant are shown at:
·
Comparison of Proposed, Final and Reproposed Emission Limits for Existing CISWI
Units
·
Comparison of Boiler GACT LimitsCOMPARISON
OF December 2012 FINAL to December 2011 Reproposal and FINAL March 2011 BOILER
MACT LIMITS and June 2010 PROPOSED BOILER MACT LIMITS
There have been good presentations in McIlvaine webinars
Third Time's the Charm? By Mack McGuffey, Troutman Sanders - Hot Topic Hour
March 22, 2012.
Mack reviewed the history of Industrial Boiler MACT which shows that there have
been substantial changes in the proposed limits each time the proposed rule has
been revised.
CEMENT MACT - The Portland Cement Association (PCA) has also been active in
analyzing the regulatory impact of the cement rule. This rule was
litigated
in an April 18, 2014 opinion
authored by Judge Kavanaugh, the D.C. Circuit upheld Environmental Protection
Agency (EPA) emission standards for Portland cement plants but struck down the
rule’s codified affirmative defense for violations that result from
malfunctions, at least as applied to civil penalties assessed in citizen suits.
http://www.velaw.com/resources/DCCircuitStrikesDownAffirmativeDefenseWhileUpholdingPortlandCementMACTRules.aspx
PCA staff have been among the presenters at McIlvaine Cement MACT webinars.
These can be found in the McIlvaine Global Decisions Orchard at
327310 - Cement Manufacturing
水泥生产.
Trinity Consultants has provided a good summary of
the rule at:
http://www.trinityconsultants.com/Templates/TrinityConsultants/News/Article.aspx?id=2992
START THROUGH THE MAIZE
Plant retirement is the first consideration. Capital investment to meet
MACT will be substantial. An old plant may only be valued at $500/kW.
Expenditures to meet MACT may, in an extreme case, be $400/kW, so you are nearly
doubling your investment. Will it be worthwhile? Here are some of
the factors to be considered.
1st
Decision Tree Stop: Plant Retirement Decision Tree
Factors Favoring Retirement |
Factors Favoring Retention |
|
Excessive Regulatory Cost |
Alternative
Options |
Factors Favoring
MATS Investment |
MACT |
GTCC |
Demand Growth |
CCR And Effluent |
Wind |
High Gas Prices |
Ambient Air Quality |
Solar |
Technology To Make MATS Lower
Cost |
Carbon Tax |
Demand Reduction |
Marginal Coal Plants Retired
Instead |
A study for CIBO showed that the average industrial boiler operator would have
to pay as much as a $4/MMBtu premium to have access to natural gas. The capital
cost of new gas turbine combined cycle plants is higher than the retrofit
options whose capital cost is shown at
CIBO Estimated Capital Costs For Air Pollution Control Equipment For Coal-Fired
Industrial Boilers.
PCA expects only 20 cement plants to retire as a result of the MACT rule. This
year cement production is expected to grow by over 6 percent.
Production will grow another 6 percent in 2015. So the demand will be
high. Most plants will opt to consider the capital investment to meet
MACT. Retirement is the initial stop in the maze, but will need to be revisited
as the cost of the MACT compliance option is further developed.
Particulate:
The decision to upgrade to meet MACT has to start with particulate control.
The MACT rule allows the operator to either meet a very low PM2.5
limit or to separately measure toxic metals. Due to the difficulty in measuring
toxic metals, virtually all plants will opt for the lower particulate limit.
2nd
Decision Tree Stop: Particulate Decision
Keep The Existing Precipitator |
Change To Fabric Filter |
New downstream scrubber will
obtain additional particulate
removal. |
Can be inserted into existing
precipitator casing. |
Can add a wet ESP after the
scrubber. |
Will be used in conjunction with
dry scrubbing or DSI. |
Upgrade the existing
precipitator. |
Reduce the sorbent injection for
mercury control. |
|
Hot Gas Filtration for all MATS
requirements—See McIlvaine
Website
Hot Gas Filters - Continuous
Analyses |
There are proposed regulations in the U.S. dealing with coal combustion residues
and effluent water quality. Dry scrubbers create combustion residues and
wet scrubbers create effluent. So MACT decisions have to take these future
standards into consideration.
Many cement plants already have fabric filters. They may need to upgrade
to membrane bags to meet MACT. In the mercury webinar in July, W.L. Gore
pointed out that the leakage of activated carbon through the bags was more
likely due to the seam failure than bag inefficiency.
3rd
Decision Tree Stop: Solids Regulations and Flyash Salability
Choice of dry scrubbers with
fabric filter for both
particulate control and SO2
capture will result in unsalable
flyash. |
Activated carbon in ash may make
flyash unsalable. |
New CCR regulations can impact
the MACT choice. |
Ramifications of CCR and
effluent analyzed on McIlvaine
website: |
Industrial boiler owners are less concerned about flyash sales than the utility
owners. However, it can be a consideration.
Cement plants are concerned with Clinker Kiln Dust (CKD) quality
The majority of CKD is recycled back into the cement kiln as raw feed. In
addition, new technology has allowed the use of previously landfilled CKD to be
used as raw feed stock. Recycling this byproduct back into the kiln not
only reduces the amount of CKD to be managed outside the kiln, it also reduces
the need for limestone and other raw materials, which saves natural resources
and helps conserve energy. Another principal use of CKD is for various
types of commercial applications. These applications depend primarily on the
chemical and physical characteristics of the CKD. The major parameters that
determine CKD characteristics are the raw feed material, type of kiln operation,
dust collection systems and fuel type. Since the properties of CKD can be
significantly affected by the design, operation and materials used in a cement
kiln, the chemical and physical characteristics of CKD must be evaluated on an
individual plant basis.
4th
Decision Tree Stop: NOx Control Technology
Many plants will have to meet
new NOx limits as a
result of Federal or State
rules. SCR is a big investment
and takes up lots of space, so
you will want to integrate NOx
and MATS decisions. |
NOx catalysts can
also oxidize mercury and allow
the wet scrubber to capture more
mercury. |
Hot Gas Filtration for all MATS
requirements—See McIlvaine
Website
Hot Gas Filters - Continuous
Analyses |
There are a number of options for industrial boiler and cement plant owners. The
advantages and disadvantages of each are:
DeNOx Decisively
Classified Options For Coal,
Cement, Incineration |
||
Option |
* |
Details |
SCR |
E |
Ammonia injection followed by a
catalytic reactor |
|
A |
High efficiency and accepted by
regulatory authorities |
|
D |
Cost, catalyst plugging, space |
SNCR |
E |
Urea injection in the furnace |
|
A |
Low cost, low maintenance, space |
|
D |
Low efficiency, ammonia slip |
Ozone
Oxidation |
E |
Ozone injection followed by
scrubber |
|
A |
Little space if scrubber already
in place |
|
D |
Ozone cost, efficiency |
Hydrogen
Peroxide |
E |
Chemical injection converts to
NO2 followed by
scrubbing |
|
A |
Low capital cost if scrubber
already in place |
|
D |
Chemical cost |
Catalytic Filter |
E |
Fabric filter has embedded
catalyst |
|
A |
Lower footprint with
combination, lower capital and
operating cost |
|
D |
Lack of experience |
* E=explanation
A=advantages
D=disadvantages |
HCl -
There is a requirement in MACT to reduce HCl. EPA says much of the benefit
of MACT is the SO2 reduction which will coincidently take place with
HCl capture.
5th
Decision Tree Stop: Select FGD Type and Reagent
One McIlvaine website covers the wet option
Wet Calcium FGD - Continuous Analyses.
Another McIlvaine website covers DSI, spray driers and circulating dry scrubbers
Dry Scrubbing - Continuous Analyses.
Hot Gas Filtration for all MACT requirements—See McIlvaine Website
Hot Gas Filters - Continuous Analyses.
6th
Decision Tree Stop - Air Toxics
Three air toxics addressed in MACT are mercury, HCl and toxic metals. The
HCl reduction is tied into the FGD. The toxic metals will be removed by
the particulate collector, so that leaves mercury as the remaining contaminant
to address. McIlvaine has covered all the options for mercury reduction at
Mercury Removal - Continuous Analyses
There have been some new developments. W.L Gore has successfully piloted
their sorbent polymer composite on cement kilns. It follows the baghouse
and cooling system and functions at about 220oF. Non-carbon
bentonite and kaolin based sorbents are also providing competition to activated
carbon.
Panelists for Industrial Boiler and Cement MACT Timing and Compliance Options
Daryl Lipscomb,
Global Business Manager, Environmental Division and Jon Miller
Albemarle Sorbent Technologies Corporation Albemarle Corporation
Keith Moore,
President, Castle Light Energy Corporation
Nathan Schindler,
Product Manager, Combustion Components Associates, Inc.
Mike Widico,
Vice-President Business Development, KC Cottrell,
Inc.
Melissa Patasnick,
Marketing Manger and Joshua Allen, Natronx Technologies, LLC
Peter Spinney,
Director, Marketing & Technology Assessment, NeuCo, Inc.
The webinar on August 14th is free to plant operators and McIlvaine
subscribers. There is a charge for others.
To register for the “Hot Topic Hour”, click on:
http://home.mcilvainecompany.com/index.php/component/content/article?id=675
McIlvaine Hot Topic Hour Registration
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 |
|
|
||
|
August |
||||
|
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 |
|||
Click here for the
Subscriber and Power Plant
Owner/Operator Registration Form
Click here for the
Non-Subscribers Registration Form
Click here for the Free
Hot Topic Hour Registration Form
----------
You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5
Bob McIlvaine
President
847 784 0012 ext 112
rmcilvaine@mcilvainecompany.com