Power Air Quality Insights No

Power Air Quality Insights
No. 144 February 13, 2014

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There is a multibillion dollar market for the reduction of emissions of mercury to the air on a worldwide basis. This is the conclusion of the McIlvaine Company in Mercury Air Reduction Markets. (www.mcilvainecompany.com)

There are tough regulations on mercury emissions from power, cement and waste-to-energy plants which are slated for enforcement starting in 2015 in the U.S. This is creating a $1 billion annual market just for adsorbents, catalysts and treatment chemicals. However, it is unclear what market share any approach will capture.

The options for the purchaser are made more complex because of the inter-relation between mercury and other pollutants. The selection of the SO₂ removal technology can greatly impact the cost of removing mercury. Once captured, mercury can be re-emitted if additional chemicals are not introduced. Fabric filters used for particulate control are more effective in the capture of mercury than are electrostatic precipitators. The purchaser facing a need for better particulate control has to decide whether to upgrade his precipitator or install a fabric filter. The need to remove mercury can influence this decision.

Suppliers of activated carbon are increasing the effectiveness of their product. At the same time, alternatives utilizing kaolin, bentonite and novel compounds are being tested and introduced to the market. There is a $200 million/yr market to measure mercury emissions. In a surprising turn of events, suppliers of continuous emissions monitoring systems are finding competition from suppliers of sorbent traps.

The largest market potential is for coal-fired power plants. However, the waste-to-energy, mining, chemical and cement sectors also provide substantial opportunities. The size of these markets will be determined by the regulations. The regulations, in turn, will be shaped by the technology. In the U.S., the EPA is required to apply MACT (maximum achievable control technology) to the removal of this pollutant. The present limits require less than 90 percent removal. In the future, this limit is likely to be much tougher.

There is a clear trend for universal adoption of the toughest regulations in any country. The U.S. has taken the lead relative to mercury, but Europe is following suit. China set a relatively high limit earlier this year but there is already movement to require 70 percent reduction.

In 2014, suppliers of scrubbers, adsorbers and biofilters will achieve sales revenue of $7.2 billion. Asia will account for much of the total. This is the conclusion reached by the McIlvaine Company in Scrubber/Adsorber/Biofilter World Markets. (www.mcilvainecompany.com)

Subject	2014
Total	7,220
Absorber	3,284
Adsorber	1,394
Biofilter	550
Dry Scrubber	573
Other	278
Particulate	1,141

This total excludes the power plant flue gas desulfurization which is very large and is included in a separate McIlvaine report. The revenues are based on systems which are defined as the typical scope for a scrubber supplier. This includes treatment of the recycled water for scrubber use, but not ultimate treatment prior to disposal.

Consumables and repair parts are not included in the totals. There is a very large additional market for sodium and calcium reagents which react with the acid gases. Spray nozzles are replaced on schedules from 3-10 years. Adsorbers use activated carbon or other media. This market is more than $100 million/yr. Other replacement parts are required for fans, pumps and valves.

Scrubbers are often used in conjunction with particulate control devices. The complete solution is defined as gaseous and particulate reduction plus treatment of the wastewater, optimization of the removal process and continuing service. With tough regulations which require hourly compliance and with the increasing complexity of control systems, there is a growing market for solutions providers.

Solution providers have $30 billion/yr market potential and much higher profit potential than do suppliers of products. On the other hand, the knowledge requirements to be a successful solution supplier are extensive and the risks of inadequate performance high.

Driven by the rapidly growing Asian market, the sales of air filters to purify indoor air will exceed $7.1 billion in 2015. This is the latest prediction by the McIlvaine Company in Air Filtration and Purification World Market. (www.mcilvainecompany.com)

The recent ambient air problems in China have accelerated sales of filtration equipment to protect residents and office workers. The growth of the Asian power, semiconductor and pharmaceutical industries as well as the very substantial office and commercial building construction are also contributing to the market growth.

Subject	2015
Total	7,199
Electronic	655
G 1-4	1,118
Gas Phase	811
H 10-17	1,000
M 5-6, F 7-9	3,615

Filter types have been segmented in the forecast. The electronic segment includes low voltage electrostatic precipitators which are incorporated in the ductwork in residential and commercial buildings. It also includes room electronic treatment units involving air flow through the treatment device, but not the less expensive units which claim to purify the air at a distance.

The G 1-4 units are the low efficiency devices such as the spun glass furnace filters commonly used in residences.

The biggest segment of the market is medium efficiency classified as M 5-6 and F 7-9. These filters are widely used in commercial and industrial buildings and are commanding the largest market share in the residential sector as well.

The H 10-17 segment is high efficiency and includes the microfiberglass wet-laid media as well as newer synthetic films. These membranes are being used to provide ultraclean air within electronic devices as well as to purify the air in semiconductor and pharmaceutical manufacturing.

Technology is driving the market. For the inlet to gas turbines, a strong case is now being made to utilize high efficiency filters at four times the cost instead of medium efficiency filters. This switch will increase revenues by $300 million. The preference for medium efficiency filters in residences and commercial buildings as opposed to low efficiency, has added more than $1 billion to annual revenues.

The development of microfibers will further shape the industry. These fibers offer reduced pressure loss and energy consumption while providing high efficiency. Membranes are being improved as well. One of the most important developments is the incorporation of adsorption and catalytic mechanisms in the filter media. Adsorbents reduce odors and volatile organic compounds. Catalysts can convert pollutants to harmless compounds.

Municipal drinking water and wastewater treatment facilities around the world will spend $54 billion this year for products and services involving flow control and treatment of air, gas, liquids and water. This is the conclusion reached by the McIlvaine Company in Air/Gas/Water/Fluid Treatment and Control: World Market. (www.mcilvainecompany.com)

Municipal Flow and Treat Revenues 2014
Product	Revenues ($ Billions)
Pumps and valves	21
Liquid physical treatment	9
Other treatment	17
Air and gas flow and treatment	3
Instrumentation	4
Total	54

The ratio of pump to valve sales is higher in municipal drinking water than in municipal wastewater due to the greater number of treatment processes needed in wastewater treatment. Plant operators are slowly moving to automation which industrial plants have already adopted. This is increasing the demand for smart pumps and valves which can indicate performance and maintenance requirements.

The liquid physical treatment processes involve delivering purified water, but also in dewatering solids. With the interest of reuse of wastewater, highly efficient technologies such as reverse osmosis are being incorporated.

Other treatment involves disinfection and biological treatment. The large size of this segment is due to the sizable investment in biological treatment of wastewater. Disinfection choices are being influenced by new rules limiting the release of disinfection byproducts. Non–chemical approaches such as ultra- violet (UV) treatment are carving out market share at the expense of chemicals such as chlorine.

Air and gas flow and treatment is required due to the use of air for aeration of biological sludges and the need for odor reduction from wastewater treatment processes. The blowers and compressors needed for aeration are the largest power consumers in the wastewater plant. There is a priority now being given to increase aeration efficiency and decrease energy consumption. Cities around the world receive more complaints about odors from wastewater plants than complaints about any other air pollutants. Biofilters and scrubbers can eliminate these escaping odors.

Too much is being spent for chemicals and not enough for automation of municipal water and wastewater treatment plants. These plants are also labor intensive with many manual quality samples being needed. Automatic sampling and control of processes promises to reduce plant costs.

Tres Amigas and Broadview Energy Announce Agreement to Interconnect up to 500 MW of Wind Power for Delivery into the California Market

Tres Amigas and Broadview Energy, LLC announced the execution of agreements that would facilitate the development and construction of up to 500 MW of wind generation in northeast New Mexico. This milestone agreement will enable Broadview, Tres Amigas’ first customer, to deliver its high-quality New Mexico wind power for the next 25 years to California starting by year-end 2015 and also enables the project to utilize the additional services to be offered by Tres Amigas when the Super Station becomes operational.

Broadview has been in development since 2011 with National Renewable Solutions (NRS) as its Manager/Developer. Broadview’s 12-turbine first phase named Brahms Wind is located five miles south of Grady, N.M. The second phase is on approximately 39,000 acres north and east of the Brahms Wind project. The agreements executed with Tres Amigas are integral to the viability of this much larger second phase, which is named Broadview Energy KW.

The construction value to the local economy is about $1.2 billion for Tres Amigas and over $550 million for Broadview’s wind farm. The project plans to install over 200 GE wind turbines in its footprint and is working with Mortenson Construction as its contractor. The Broadview Energy KW project is expected to create upwards of 200 construction jobs and an estimated 20 full-time, permanent jobs once construction is complete.

Tri-State Signs Agreement with NextEra Energy Resources for New Wind Facility in Eastern Colorado

Tri-State Generation and Transmission Association, Inc. announced that it has entered into a 25-year agreement with a subsidiary of NextEra Energy Resources, LLC for a 150 megawatt wind power generating facility to be constructed in eastern Colorado.

Under the 25-year power purchase agreement (PPA), Tri-State will purchase the entire output and associated environmental attributes of the Carousel Wind Farm. The 150 MW facility will be Tri-State's largest wind energy PPA to date. When the project begins commercial operation, the wind farm will provide affordable electricity to Tri-State's 44 member cooperatives across Colorado, Nebraska, New Mexico and Wyoming.

The Carousel Wind Farm agreement was the result of a solicitation for renewable resources issued by Tri-State in early 2013,

Utility Scale Solar Power Plants Completed Under Large Scale Solar Initiative in Georgia

Origis Energy, a leading international investment and development firm focused on deployment of utility-scale and distributed generation commercial solar photovoltaic (PV) systems, announced the completion and dedication of two solar power plants in Georgia, representing the state’s second largest solar installations. The two solar power sites, with a combined capacity of 23.5 megawatts (MW)_DC, are located in Camilla and Woodbury, Georgia and will deliver clean solar energy to Georgia Power, the largest subsidiary of Southern Company, one of the nation's largest generators of electricity, under the utility’s Large-Scale Solar Initiative.

Commissioned in December 2013 the solar installations utilize 78,160 solar photovoltaic panels to generate enough power annually for nearly 6,000 homes.

ET Solar Modules Selected to Power Projects Totaling 23 MW in North Carolina

ET Solar, Inc. announced that they have been selected by Strata Solar to supply modules for six solar power plants in North Carolina, with a combined capacity of 23 megawatts (MW).

The projects are being constructed in North Carolina, the nation's second leading state in terms of solar capacity installed in 2013. Strata Solar, a leading turn-key solar developer will provide Engineering, Procurement and Construction (EPC) services for all six projects.

North Carolina has made great strides in solar installations over the past 3 years, and Strata Solar is one of the nation's leading firms with over 300 MW's of utility scale solar installed during this period. Strata has 300 MW's scheduled for completion in 2014 across over 40 projects in North Carolina, Tennessee and Missouri, and their pipeline currently stands at well over a gigawatt in 7 states.

World’s First Large Scale Power Storage System Made from Reused EV Batteries Completed in Japan

Sumitomo Corporation has developed and installed the world's first large-scale power storage system which utilizes used batteries collected from electric vehicles (EV). This commercial scale storage system, built on Yume-shima Island, Osaka, will begin operating in February 2014.

Over the next three years, the system will measure the smoothing effect of energy output fluctuation from the nearby "Hikari-no-mori," solar farm, and will aim to establish a large-scale power storage technology by safely and effectively utilizing the huge quantities of discarded used EV batteries which will become available in the future. This project has been selected as a model project for "Verification of the battery storage control to promote renewable energy" for the fiscal year 2013 by the Ministry of the Environment of Japan.

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
February 13, 2014	Impact Of Ambient Air Quality Rules On Fossil-Fueled Boilers And Gas Turbines	More information
February 27, 2014	NO_x Catalyst Performance On Mercury And SO₃	More information
March 13, 2014	Industrial Boiler Fuel Options: Coal, Biomass Or Gas?	More information
March 27	Mercury Control And Removal	More information
April 10	NOx And Ammonia Slip Measurement