·       Major Shift in the World Air Pollution Control Market

·       Flow Control and Treatment Sales in the World’s Semiconductor Industry Will Increase To Over $6.5 Billion In 2015

·       Renewable Energy Briefs

·       Utility E-Alert Headlines –August 8, 2014

·       McIlvaine Hot Topic Hour Registration

Major Shift in the World Air Pollution Control Market

The U.S., Europe and Japan are no longer dominating the world air pollution control market.  The extent of this transfer of power is analyzed in Air Pollution Management published by the McIlvaine Company.  (www.mcilvainecompany.com)

Coal-fired power plants will continue to be the largest purchasers of air pollution control equipment. However, most of the purchases will be in Asia and Africa.  The U.S. is effectively banning the construction of new coal-fired power plants.  Europe is reducing output from coal-firing in favor of gas and renewables.

At one time a few companies controlled the power plant air pollution market.  In the 1950s, the big market was electrostatic precipitators.  Western Precipitation and Research Cottrell shared the U.S. market.  Lodge Cottrell and Lurgi controlled the European market.   Japanese licensees (Mitsubishi and Hitachi) controlled the Asia market.

Today the European and American pioneers are gone.  Furthermore, precipitators are not the dominant type of air pollution control equipment.  Fabric filters have replaced precipitators in most applications except coal-fired power plants.  New regulations in China and the U.S. will lead to replacement of precipitators with the more efficient fabric filters at many coal-fired power plants.

SO₂ removal technology was developed in the 1970s in the U.S.  However, the U.S suppliers could not retain their initial advantage.  The next big market was Japan where Hitachi, Mitsubishi and Chiyoda became leaders. The market then moved to Europe where many local companies attempted to compete.  The result was disastrous for the suppliers.  Many bankruptcies occurred.

China now operates more coal-fired power plants than the U.S. and Europe combined.  The largest precipitator manufacturers in the world are now located in China.  Originally the SO₂ removal systems were licensed from offshore firms.  This reliance is changing as the licensees are accumulating more experience than the licensors.

The U.S. presently has one major asset.  Tough mercury regulations have resulted in development of control technology by U.S. firms.  They will be positioned to offer these technologies internationally.

In the future, competition from Chinese suppliers in growth regions such as Africa will be strong.  The potential success for non-Asian suppliers will be in components rather than systems.  Pentair dominates the supply of valves for dust collectors.  Non-Asian suppliers continue to supply the membranes, fabrics and fibers used in dust collection.

International suppliers are still in control of the NO_x catalyst market but there are many new Chinese manufacturers.  However, some are joint ventures with international companies.  Air monitoring instrumentation is dominated by U.S. and German companies.

For more information on Air Pollution Management, click on:  http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/100-5ab

Flow Control and Treatment Sales in the World’s Semiconductor Industry Will Increase To Over $6.5 Billion In 2015

The semiconductor industry has rebounded and will increase its purchases of flow control and treatment equipment for air, water and other liquids and gases to over $6.5 billion in 2015.  These forecasts were calculated by McIlvaine Company through aggregation of revenues in a number of McIlvaine market reports.  (www.mcilvainecompany.com)

The biggest expenditures will be for cleanroom consumables.  These include masks and clothing which prevent people from contaminating the air in the chip manufacturing space. The ultrapure water systems ensure that the water washing the chips after each step will not contaminate the sub-micron lines etched in the silicon wafers.

Substantial expenditures are needed to purify the water used in the systems. Pumps and valves are specially designed to maintain water and fluid purity.

SEMI, the global industry association for companies that supply manufacturing technology and materials to the world’s chip makers, is forecasting strong growth in 2014 and 2015.  Following two years of spending declines, key drivers for equipment spending are investments by foundry and logic fabs for sub-20-nm technology, NAND flash makers for leading edge technology (including 3D NAND) and capacity, DRAM technology upgrades for mobile applications and expansion of advanced packaging capacity for flip chip, wafer bumping and wafer-level packaging. All regions of the world are projected to see equipment spending increases in 2015.  Front-end wafer processing equipment is forecast to grow 11.9 percent in 2015 to $34.8 billion, up from $31.1 billion in 2014. The forecast indicates that next year is on track to be the second largest spending year ever, surpassed only by $47.7 billion spent in 2000.

Growth is forecast in all regions except ROW in 2014 and all regions in 2015. Taiwan is forecast to continue to be the world’s largest spender with $11.6 billion estimated for 2014 and $12.3 billion for 2015. In 2014, North America is second at $7.2 billion, followed by South Korea at $6.9 billion.  For 2015, South Korea is in second place ($8.0 billion) in spending, followed by North America ($7.3 billion).

In 2014, year-over-year increases are expected to be largest for China (47.3 percent), North America (35.7 percent), South Korea (33.percent) and Europe (29.7 percent). Year-over-year percentage increases for 2015 are largest for Europe (47.8 percent increase), ROW (23.5 percent), Japan (15.6 percent) and South Korea (15.0 percent).

For more information, click on:

N064 Air/Gas/Water/Fluid Treatment and Control: World Market

5AB Air Pollution Management

N024 Cartridge Filters: World Market

N6F World Cleanroom Markets

N019 Pumps World Market

N006 Liquid Filtration and Media World Markets

N005 Sedimentation and Centrifugation World Markets 

N020 RO, UF, MF World Market

N029 Ultrapure Water: World Market

N028 Industrial Valves: World Market

N026 Water and Wastewater Treatment Chemicals: World Market

Renewable Energy Briefs

Citi to Source $2.5 Billion to “Power Africa”

Citi has pledged to source $2.5 billion in incremental capital to improve access to electricity for millions of people across Africa as part of the “Power Africa” initiative.

Power Africa is a multi-stakeholder partnership between the U.S. Government, governments of several African countries and other public and private sector entities, working to accelerate investment in Africa’s power sector over the next several years.

Citi will also leverage its financing expertise in renewable energy to encourage the adoption and implementation of the appropriate technologies for specific markets. The bank will work with key stakeholders in local capital markets to introduce innovative debt securities and to enhance financial infrastructure.

Vattenfall Continues to Invest in Offshore Wind in Germany

Vattenfall and Stadtwerke München (Munich City Utilities, SWM) have decided to jointly invest about 11 billion Swedish kronor (1.2 billion Euro) in a second joint offshore wind farm off the German North Sea coast.

The offshore wind project Sandbank will include 72 units of 4 MW wind turbines (totaling 288 MW) and is expected to annually generate 1.4 TWh of renewable electricity, equivalent to the consumption of about 400,000 households. Vattenfall has a share of 51 percent and will invest about 5.6 billion in the project. The new wind farm will be built northwest of DanTysk, Vattenfall and Stadtwerke Munich's first joint wind farm to be operational in 2015. Both Sandbank and DanTysk has an installed capacity of 288 MW each. Construction on the wind farm Sandbank is scheduled for 2015.

Pacific Energy Solutions Breaks Ground on $334.1 Million Solar Energy Contract for the Department of Defense and the U.S. Navy in Hawaii

Pacific Energy Solutions (PES), an energy project development company specializing in renewable technologies, announced that on July 11, 2014, they entered into a binding contract with the U.S. Navy to supply approximately 30,400 MWh of electricity annually to the Navy for use by Navy, Marine Corps and Air Force activities in the State of Hawaii. PES will supply this electricity to the Navy over a 25-year Power Purchase Agreement term.

A groundbreaking ceremony was conducted on July 24, 2014 at Joint Base Pearl Harbor-Hickam.

In support of its deliveries under this contract, PES will install 68,645 photovoltaic modules at 14 project sites at military installations on the Island of Oahu. Additionally, PES will construct a 2 mile underground transmission system, including a bored crossing, beneath the Pearl Harbor Channel. The solar installations will include a utility scale facility on the Waipio Peninsula, which is expected to be, when completed, the largest solar generation facility in the State of Hawaii.

Solar Farm Developed on Superfund Site

Inovateus Solar, LLC, a worldwide developer and installer of commercial and industrial solar power systems, has participated in the development of a ground-based solar array project installed on the newly operational Maywood Solar farm located on 43 acres near the Vertellus Specialties, Inc. headquarters in Indianapolis, IN. The land is owned by Vertellus Specialties, Inc. and supported by Indianapolis Power & Light's (IPL) Rate Renewable Energy Production (REP) Program. The 43-acre solar array is the first solar farm built on an existing Superfund Site with previous ground contamination.

The Maywood land is a Superfund project site that was remediated starting in 1992 under the supervision of the United States Environmental Protection Agency (US EPA) and Indiana Department of Environmental Management (IDEM), and is now in a monitoring-only status. The solar array was constructed by Hanwha Q CELLS USA along with US EPA, IDEM, IPL, and Vertellus Specialties Incorporated.

The 10.82 MW project is part of a renewal energy production program administered by the Indianapolis Power and Light Company (IPL).

Construction Underway on Project to Develop Energy from Hog Manure

Construction is underway in Northern Missouri on an innovative $80 million renewable energy project, developed and constructed by Roeslein Alternative Energy, LLC (RAE) in collaboration with Murphy-Brown of Missouri, LLC (MBM) the livestock production subsidiary of Smithfield Foods, Inc.

Crews are installing impermeable covers on 88 existing lagoons to harvest biogas, also called renewable natural gas (RNG), from MBM hog finishing farms using best in class anaerobic digestion technology developed and installed by RAE. The project is the largest of its kind, utilizing manure from one of the biggest concentrations of finishing hogs in the Midwest to create several hundred million cubic feet of RNG annually for regional distribution.

Impermeable synthetic covers will be placed on existing nutrient treatment lagoons where barn scraper technology will deliver raw nutrients of livestock manure to covered lagoons. The covers turn the lagoons into anaerobic digesters, where naturally occurring microorganisms decompose the manure in an oxygen free environment. Biogas rises to the top where it will be collected and cleaned of impurities. What remains is more than 98 percent methane with approximately the same chemical composition as natural gas that can be used for vehicle fuel or injected into the natural gas grid system. The indigestible solid residue can be used by local farmers as a natural fertilizer and the water can be safely used for irrigation.

For more information on Renewable Energy Projects and Update please visit

http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm

Headlines for Utility E-Alert – August 8, 2014

UTILITY E-ALERT

#1186 – August 8, 2014

Table of Contents

COAL – US

• Mississippi Power’s Plant Watson (Units 4 and 5) and Plant Greene County (Units 1 and 2) being converted from Coal to Natural Gas
• Big Sandy Coal-fired unit to remain operational, convert to Natural Gas
• Tennessee Property Owners will receive $27.8 Million from TVA to settle Claims
• Babcock & Wilcox awarded a Contract to erect a 550 MW Dry FGD Unit at Flint Creek Power Plant in Arkansas
• NRG Energy announces Plan to reduce Pollution from Fleet of Illinois Coal-fired Power Plants

COAL - WORLD

• Marsulex Environmental Technologies to supply Ammonium Sulfate Wet FGD System in Poland

GAS/OIL - US

• EPA approves 50th GHG Construction Permit for Natural Gas Project in Texas
• Moundsville Power LLC announces Private Venture to construct a Natural Gas Combined Cycle Power Plant in West Virginia
• Burns & McDonnell awarded EPC Contract for 56 MW Power Project in Stillwater, OK

GAS/OIL – WORLD

• Japanese International Cooperation Agency signs Loan Agreement with Tunisia for Combined Cycle Power Plant Project
• CECO subsidiary, Aarding Thermal Acoustics, received Two Natural Gas Orders for $20 Million
• Requests submitted by Eleven International Power Companies for Prequalification to develop Oman’s Gas-fired Power Plant

NUCLEAR

• Japan Nuclear Reactors’ Restart may be delayed

BUSINESS

• FGD Upgrades will assure a $5 Billion Annual Market
• EU clears Rolls-Royce Energy Business Deal with Siemens

HOT TOPIC HOUR

• “MATS Timing and Technology Options” discussed in Hot Topic on August 7, 2014
• “Industrial Boiler and Cement MACT Timing and Compliance Options” is the Hot Topic on August 14^th 
• 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

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.

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   

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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

www.mcilvainecompany.com