Power Air Quality Insights No

Power Air Quality Insights
No. 175 September 18, 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.

· U.S. Market for Gas Turbine System Components Shaped By Regulations and Economics

· “Water Treatment Chemicals for Gas Turbine Combined Cycle Power Plants” - Hot Topic Webinar on September 25 at 10 a.m. Central

U.S. Market for Gas Turbine System Components Shaped By Regulations and Economics

Some utilities will have to build new gas turbine plants and retire coal-fired power plants just to meet the new CO₂ limits. Some new gas turbine plants will not include major components because they will be constructed at existing coal-fired power plants which will be retired. New components will be sold to existing gas turbine plants which were formerly operated just for peaking purposes and will now be operated under base load conditions. These activities are chronicled in Gas Turbine Combined Cycle Supplier Program published by the McIlvaine Company. (www.mcilvainecompany.com)

Ameren says it will need to add 1,200 MW of combined cycle natural gas generation by 2020 in order to comply with the Environmental Protection Agency’s proposal to reduce carbon dioxide emissions linked to climate change. While the utility says its internal plans already called for more natural gas, it said the EPA proposal’s timeline would require more new power plants sooner than necessary and lead to rate hikes of 10 to 15 percent by 2020.

The new gas-fired power plants would come online around the same time Ameren plans to retire its coal-fired 840-MW Meramec power plant in south St. Louis County. But that retirement wouldn’t reduce the utility’s rate of carbon emissions without new, lower-carbon generation offsetting it. Building that amount of new capacity would cost roughly $2 billion and require at least four combined cycle gas-fired power plants.

The decision to build gas turbine plants at existing coal sites to some extent is influenced by alternative choices. The Xcel Black Dog Minnesota plant is an example. Calpine is countering the proposal to replace 235 MW of coal capacity at this plant with gas turbines by proposing to expand the Mankato plant by 350 MW.

Kentucky Cane Run 7 coal-fired power plant will be replaced by Siemens SGT5-5000F turbines which will generate 660 MW in a Black & Veatch design and build project. With more than 100 coal-fired power plants scheduled for retirement, the question arises as to how much of the existing plant can continue to be used with the switch to gas. In some cases there is just a fuel switch and no change to the balance of plant. Where a new turbine is installed, the existing cooling, boiler feed water and wastewater systems are often more than adequate for the new conditions.

The Florida Power Crystal River coal plants 1&2 will be retired when the first 820 MW of the 1640 MW combined cycle plant comes on line in 2018.

Coal is not the only fuel being replaced with GTCC. Some oil-fired plants are being retired. There is even a biomass plant considering a switch to gas.

Southern Power's biomass plant in Sacul, Texas was no sooner in operation in 2012 that competition from natural gas surfaced. A guaranteed 20-year contract with the City of Austin keeps the plant open even though the city is buying primarily cheaper natural gas. Southern Power wants to remain competitive, potentially at the Sacul site. “So ultimately we'll build for our customers needs, but the applications speak to a gas-fired facility because there's piping in that area available,” said Jeannice Hall, the senior media relations strategist with Southern Company.

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

Over the last year there have been a number of acquisitions in the air filtration industry as companies strengthen their reach in three key areas.

These are the conclusions reached by the McIlvaine Company in Air Filtration and Purification World Market. (www.mcilvainecompany.com)

Recent Air Filtration Acquisitions
Acquiring Company	Acquired Company
Eastman Chemical	Knowlton
Neenah Paper	Crane Technical
Lydall	Andrew
Mann + Hummel	Vokes
Clarcor	GE -BHA
Filtration Group	Porex
SWM	Delstar
PGI	Fiberweb

Eastman Chemical Company is acquiring Knowlton Technologies, LLC. The company, which is located in Watertown, NY, is a leader in the design, accelerated prototyping and manufacture of wet-laid nonwovens in filtration, friction and custom designed composite webs.

“Knowlton Technologies is a trusted and established leader in advanced materials with an expertise in wet-laid media prototyping and formulation development,” says Tim Dell, vice president, innovation, Eastman. “This acquisition will bring a set of complementary skills and development capabilities that will help Eastman better innovate with our nonwovens-producing customers and accelerate the innovation cycle for microfibers in important markets like filtration.”

Neenah Paper, Inc. recently purchased Crane Technical Materials, Inc. from Crane & Co., Inc. The company, to be renamed Neenah Technical Materials, provides performance-oriented wet laid nonwovens media for fast growing filtration end markets as well as for environmental, energy and industrial uses. Annual sales of approximately $50 million are supported through two manufacturing operations located in Pittsfield, Massachusetts.

"We are excited to move forward now as a company with an expanded manufacturing platform serving a broader base of filtration and other performance-oriented technical markets and customers," said John O’Donnell, Chief Executive Officer. "This acquisition clearly fits our strategy of expanding in profitable specialty niche markets with above average growth rates and attractive financial returns. In addition, it nicely complements our European filtration business and provides new technologies that represent a platform for future growth."

The purchase price of $72 million comprised of $64 million for the business and $8 million related to future cash tax benefits.

Neenah, headquartered in Alpharetta, Georgia, is a leader in premium image and performance-based products, including filtration, with products sold in over 70 countries worldwide from manufacturing operations in the United States and Germany.

Lydall has acquired the industrial filtration business belonging to Andrew Industries for a deal valued at $83 million in cash. The acquisition strengthens Lydall's position as an industry-leading global provider of filtration and engineered material products and diversifies the company's end markets and geographic revenue base.

Andrew is a leading global manufacturer and supplier of nonwoven filtration felt media and filter bags for industrial air filtration applications. In the U.S., these products are sold under the brand Southern Felt while in Europe they are known as Andrew Webron and in Asia as China Felt Company. Nonwoven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries including power, cement, steel, asphalt, incineration, food and pharmaceuticals. The acquired business consists of operations in the U.S., the U.K. and China and approximately 500 employees. In 2013, Andrews' sales were about $127 million.

"The acquisition of Andrew Filtration expands our global footprint, adds complementary and new technologies as well as substantial scale that provides a platform for long-term growth and better positions us to deliver meaningful shareholder value," says Dale Barnhart, Lydall's filtration and engineered materials segments are expected to contribute approximately 50 percent of Lydall's consolidated revenue. We expect new growth opportunities will result from manufacturing and selling complementary products and leveraging Andrew Filtration's well established presence in faster growing Asian markets."

The MANN+HUMMEL Group with headquarters in Ludwigsburg acquired Vokes Air from The Riverside Company, an international private equity firm. The Swedish-based company Vokes Air, a leading filtration solutions provider, produces and distributes filters for indoor and process air purification. In Europe, the company’s 400 employees are currently based primarily in Germany, Sweden, and the U.K. With this acquisition, MANN+HUMMEL is following its growth strategy, which includes increasing their presence in filtration markets outside of the automobile industry.

Alfred Weber, CEO of MANN+HUMMEL notes: “With Vokes Air, we enter a new market with great potential. This acquisition creates new chances for both the companies and the employees.”

The HVAC segment (Heating, Ventilation and Air Conditioning) has approximately a 15 percent share in the global filtration market, and offers attractive growth rates. This segment belongs to the mega-trend of ‘air purification’, which has a growing importance for medical and industrial applications (e.g. clean room requirements).

Clarcor, Inc. has acquired the Air Filtration business of General Electric Company's Power and Water division for approximately $265 million. With over 700 employees around the world and annual revenues of approximately $230 million, the business is a leading supplier of air filtration systems and filters used in gas turbine applications, as well as industrial air filtration products and membranes. Headquartered in Overland Park, Kansas and with manufacturing operations in Missouri, the UK and China, the business will continue to supply gas turbine air inlet filtration systems and filters to GE, which has the world's largest installed base of natural gas turbines, under a multi-year supply agreement.

Christopher L. Conway, Clarcor's Chairman, President and Chief Executive Officer commented, "We are very excited about this acquisition and the multiple opportunities it offers Clarcor. Each element of this business - gas turbine filtration, industrial air filtration, and membranes - is attractive and fits within our core strategies and competencies. This transaction creates exciting new vertical opportunities and relationships, affords us access to various new technologies, broadens our already extensive product portfolio and solidifies what we believe is our standing as the most diversified filtration company in the world.

"With this transaction, Clarcor will become a leading designer and supplier of air inlet filtration products for natural gas turbines, a business we believe is poised for long-term growth as the world continues to shift toward natural gas as its energy source of choice. Clarcor traditionally has had little presence in the gas turbine business and we believe this transaction will immediately position Clarcor as a major player in the space and provide a strong platform from which to grow, both with respect to first-fit applications as well as the aftermarket.

Filtration Group – Porex

Filtration Group Corp acquired Porex Corp from investment firm Aurora Capital Group. Filtration Group, which is owned by Chicago-based Madison Capital Partners, specializes in liquid, air and fluid filtration solutions. The Filtration Group portfolio already includes AG Industries, Air Flow Technology, Chemco Manufacturing, Clear Edge Filtration, Dafco Filtration Group, Filtrair, Filtran, Filtration Group, Global Filter, Jonell, Universal Air Filter and Waco Filters. AG Industries, Clear Edge Filtration and Jonell were all acquired recently.

SWM – DelStar

SWM acquired DelStar from the investment firm American Capital Strategies. DelStar Technologies is a custom manufacturer of plastic and metal components used in filtration, automotive, healthcare, industrial, food, electronics and textile markets. Their products include a wide variety of plastic nets, nonwovens, tubes, and cores, plus specialized plastic and metal machined parts. The DelStar Technologies’ brands include Naltex extruded netting, Delnet apertured films, DelPore meltblown nonwovens, Stratex laminate composites and Coretec extruded cores, tubes and machined parts. DelStar is headquartered in Middletown, DE, has manufacturing operations at that location, as well as in Austin, TX; Richland, PA; El Cajon, CA; and Suzhou, China.

SWM is a provider of highly-engineered and proprietary solutions primarily for the tobacco industry. It also manufactures specialty papers for other applications. SWM and its subsidiaries operate in over 90 countries and employ about 2,500 people worldwide, with operations in the U.S., France, Brazil, Canada, Poland and two joint ventures in China.

Two of the world's largest nonwovens producers have merged Polymer Group Inc. has acquired Fiberweb.

Fiberweb specializes in technical applications and geosynthetics. Two years ago, the company significantly downsized itself through the sale of its hygiene-related assets to Fitesa. Its 2012 sales were about $460 million. PGI is heavily invested in the hygiene market with spunmelt assets located around the globe. It has made no secret of its intent to diversify further into more technical applications and already has a decent foothold in a number of industrial and filtration related areas. In 2012, its sales were $1.15 billion.

Mainstream Renewable Power Signs Deal to Build and Operate Ghana’s First Utility Scale Wind Farm

Global wind and solar company Mainstream Renewable Power announced the signing of an agreement with Swiss wind farm developer NEK Umwelttechnik to purchase the 225 megawatt (MW) Ayitepa Wind Farm, located 40 kilometers from Accra on the east coast of Ghana. The project, which represents a total investment of $525 million, is expected to reach financial close next year and start generating power early in 2016.

The companies will co-develop the wind farm until financial close. Mainstream will manage the construction as well as the operations and maintenance of the wind farm for its lifecycle. The project is currently in the latter stages of development with all major permits secured. Grid and offtake agreements are being finalized.

When fully operational the wind farm will generate approximately 10 percent of Ghana’s total electricity generation capacity which currently stands at 2,000 MW.

Google Executes $145 Million Investment in SunEdison and TerraForm Power’s Largest Solar Plant in North America

SunEdison, Inc announced that Google Inc. has agreed to provide $145 million in equity financing for the Regulus solar plant. When completed, the Regulus solar project will be SunEdison's largest developed and constructed project in North America. Located in Kern County, CA, the Regulus plant will begin operation later this year, and will supply power to Southern California Edison through a 20-year power purchase agreement. SunEdison developed, designed, executed the structured financing and is constructing the Regulus project, which was contributed to TerraForm Power and represents 10 percent of the 808 MW DC in the initial TerraForm portfolio.

The 737-acre 82 MW DC solar photovoltaic (PV) power plant is in construction on an abandoned gas and oil field, and will be comprised of over 248,000 SunEdison mono-crystalline solar PV modules.

Xcel Energy’s Southwestern Public Service Company is seeking proposals for additional solar energy resources as a component of its resource planning process.

Through this solicitation, SPS is requesting proposals for up to 200 megawatts of solar photovoltaic generation resources that could begin delivery to SPS on or before December 31, 2016, and that would be contracted through a power purchase agreement.

JinkoSolar Holding Co., Ltd. announced that its 100 MW solar PV power plant in Xiangshui, Jiangsu Province was connected to the grid. The company has so far successfully connected to the grid for more than 300 MW of solar PV power projects.

Without farm land occupation, the project was built on the top of a 2 million square meter fish pond which is located in the coastal economic development zone in Xiangshui, Yancheng City, Jiangsu Province. It is one of the largest Solar PV projects connected to the grid in Jiangsu Province. The power plant has been granted a 20-year subsidy of 1.0 RMB/KWh.

North America’s Largest 100 Percent Biomass Fuelled Power Plant Opens in Ontario, Canada

Ontario, Canada is now home to North America's largest power plant fuelled completely by biomass. The Atikokan Generating Station conversion is complete and the station is now generating electricity and helping meet local power needs in northwestern Ontario.

Atikokan Generating Station, which employs 70 full-time workers, burned its last coal two years ago, on September 11, 2012. Conversion of the station began in mid-2012 and included construction of two silos and boiler modifications to accommodate the biomass. The project employed over 200 highly skilled trades people and technical workers.

The biomass used to fuel Atikokan Generating Station is being harvested and processed in Ontario. Domestic suppliers have leveraged this opportunity to secure contracts to provide pellets to international buyers.

· Emerson Process Management named Contractor for Comprehensive Controls Replacement Project

“Water Treatment Chemicals for Gas Turbine Combined Cycle Power Plants” - Hot Topic Webinar on September 25 at 10 a.m. Central

This webinar will be both organizational and informative. It is all part of a whole knowledge system for gas turbine combined cycle plant operators--Gas Turbine and Combined Cycle Decisions. The free website and periodic webinars empower the operators to buy the best products rather than the most familiar or least expensive.

The webinar on the 25^th will try to answer the question: What are the most important and difficult decisions you will have to make regarding treatment chemicals? On August 28 we conducted a webinar on Degasification and Demineralization. One of the discussions was on Improving Silica Removal by EDI and GTM by Michael Snow, Snowpure. Is there a need for a treatment chemical to compliment the EDI and GTM?

NOTE: Roger is not allowed to post any slides without a lengthy corporate approval, so he will provide discussion only.

Daniel C. Sampson, Principal Consultant Power/Water/Wastewater at WorleyParsons , Inc./ Energy & Chemical

These are the types of pertinent questions that the operators want answered. Others would be:

With fast start HRSGS and constant cycling what chemical additions will counter some of the negative consequences of this operating mode?

If use ACC instead of wet cooling and have increased iron content how do you solve this problem?

What are the water chemistry issues facing GTCC operators which are unique to this type of power generation?

What are the chemical treatment needs if zero liquid discharge technology is mandated?

What are the chemical treatment recommendations if treated municipal wastewater is selected for the cooling or even the boiler feedwater?

How do you keep fogging nozzles from plugging and also prevent introduction of contaminants which will cause turbine blade build up?

What other questions are GTCC operators asking? This webinar is free for power plants?

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
September
11	Power Plant Pumps
18	Power Water Monitoring
25	Power Plant Water Treatment Chemicals
October
2	Precipitator Improvements
16	Power Plant CEMS
23	Sediment Removal and Remediation
30	Coal-fired Power Plant NO_x Reduction Innovations
November
6	Power Plant Cooling
13	Boiler Feedwater Treatment
December
18	Power Plant Pump Innovations