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· Hot Topic Hour, July 14, 2011 “Power Plants Fans”
· Here are the Headlines for the June 17, 2011 – Utility E Alert
· Power is the Big Growth Segment for the Fabric Filter Industry
· Power Purchase Agreements are Critical to Renewables Projects
Do you have questions about fans and blowers for use in Power Plants?
You can have them answered at the McIlvaine Company “Hot Topic Hour” on “Power Plant Fans” on July 14, 2011 at 10 a.m. CDT (Chicago time). We are changing the format of the Hot Topic Hours in order to focus more on the technical issues of concern to the participants. Rather than having each participant prepare their own 20 minute presentation as was done in previous Hot Topic Hours, we are assembling a panel of 3 to 5 experts on the subject matter to address specific questions. Each person on the panel will be asked to comment on a series of four to six questions prepared by The McIlvaine Company after consulting with the panelists, and from those you may submit.
To register for the "Hot Topic Hour" on Thursday, July 14, 2011 at 10 a.m. CDT (Chicago time), click on: http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
If you have any questions or concerns that you would like addressed by the panel, please send an e-mail to Jim Downey at jdowney@mcilvainecompany.com.
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Here are the Headlines for the June 17, 2011 – Utility E Alert
UTILITY E-ALERT
#1029 – June 17, 2011
Table of Contents
COAL – US
COAL - WORLD
GAS / OIL – US
§ Natural Gas-fired Power Plant at Rio Grande (NM) approved for Air Permit
§ New Obstacle to 350 MW Brockton Combined Cycle Power Plant in MA
GAS / OIL – WORLD
GASIFICATION
BIOMASS
CO2
NUCLEAR
BUSINESS
HOT TOPIC HOUR
§ Hot Topic Hour June 16 was FGD Wastewater Treatment
§ Upcoming Hot Topic Hours
For more information on the Utility Environmental Upgrade Tracking System, click on: http://www.mcilvainecompany.com/brochures/energy.html#42ei.
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Power is the Big Growth Segment for the Fabric Filter Industry
Fabric filters have become the pollution control option of choice for incinerators, cement plants, foundries and many other industries. However, they are not widely used in power generation. More than 50 percent of all the gases discharged from stacks in the world emanate from coal-fired power plants. More than 90 percent of these gases are purified with electrostatic precipitators and not fabric filters. This is all about to change.
The McIlvaine Company (www.mcilvainecompany.com) in its most recent additions to World Fabric Filter and Element Market predicts that Power, rather than be the step child of the industry, will be the hot growth market.
World Growth in Fabric Filter System & Bags Sales
for Power Market ($ Million)
|
2006-2010 |
2011-2015 |
2016-2020 |
|
|
Fabric Filter Systems |
$440 |
$1,500 |
$1,400 |
|
Bags |
$90 |
$400 |
$700 |
The Utility Air Toxics Rule, which has been proposed in the U.S., could result in the addition of 100,000 MW of fabric filters for coal-fired boilers. This is one-third of the entire fleet (300,000 MW). At an installed cost of over $200,000/MW, this represents an investment of $20 billion. McIlvaine uses a more restrictive revenue definition of 2.2 times the hardware cost to represent the average contractor revenue or system cost. Even using this more narrow definition, the systems market would be increased by nearly $10 billion or $2 billion/yr during the 2011-15 timeframe.
McIlvaine believes that some of the EPA assumptions resulting in the very large number of fabric filters are flawed, and is therefore projecting a smaller but still very large market in the U.S. Worldwide system sales will more than triple in the 2011-15 period to $1.5 billion/yr. This will carry on into the 2016-20 timeframe as other countries also pass tougher particulate and mercury control regulations and force greater use of fabric filters.
Unlike the systems market which undulates, the market for the replaceable bags is a straight line. The large initial need for bags on the new systems, plus the need to supply replacements after three years will boost the power plant bag market to $400 million/yr in the 2011-15 period. The additions to the inventory of systems will cause the 2016-20 annual bag market to rise to $700 million/yr.
There will be healthy growth in cement, steel and other industries resulting in a strong growth for the fabric filter industry over the next decade.
For more information on World Fabric Filter and Element Market, click on:
http://www.mcilvainecompany.com/brochures/air.html#n021.
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Power Purchase Agreements are Critical to Renewables Projects
The power purchase agreement is a very important part of any renewable energy project. McIlvaine’s Renewable Energy Updates reports on these as they are announced. They are also tracked in the projects section of this service. Here are just a few of the power purchase agreements we’ve reported on recently.
Boralex Inc. and the Témiscouata RCM have signed a 20-year electricity supply agreement with Hydro-Québec Distribution for their wind power project.
"Signing the agreement with Hydro-Québec Distribution is an important stage in establishing Témiscouata wind farm," says Patrick Lemaire, President and Chief Executive Officer of Boralex.
Located on public land in the municipality of Saint-Honoré-de-Témiscouata, the 25 MW Témiscouata wind farm will start operating in late 2014. The environmental impact study for the wind power project is currently underway and the partners are going through each step in the environmental approval process.
Abengoa, has been offered a conditional commitment for a federal loan guarantee that will be used to build the Mojave Solar Project (MSP). Department of Energy Secretary Steven Chu announced that the DOE has offered a conditional commitment for a $1.2 billion loan guarantee. The guarantee will support the construction and start-up of the Mojave Solar Project (MSP), a 280 gross megawatt (MW) Concentrating Solar Power (CSP) plant in California, about 100 miles northeast of Los Angeles. MSP will sell its production to Pacific Gas & Electric (PG&E) and will produce enough energy to serve 53,000 households.
The building of MSP will create new construction jobs peaking at about 1200, while averaging around 830, and another 70 permanent operation positions. Many indirect jobs will also be generated, including the numerous manufacturing jobs in the supply chain.
Abengoa plans to start construction of MSP in August and expects that the plant will start producing power in the summer of 2014. Abengoa signed a power purchase agreement with PG&E, one of the country's largest electric utilities, to sell the energy produced by MSP for its 25-year contract period.
Pattern Energy Group LP announced it has begun construction on the Spring Valley Wind project. The project is located on public lands in northern Spring Valley, approximately 30 miles east of Ely, Nevada, and will be the state's first wind energy project.
The 150 megawatt (MW) Spring Valley Wind project will take approximately one year to build and will create approximately 225 jobs during construction, with a preference given to qualified local workers and contractors. The wind project will also create up to 13 full-time permanent positions once operational and generate new business and tax revenue for the state and White Pine County community.
Pattern has entered into a 20-year power purchase agreement with NV Energy for the sale of energy produced by Spring Valley Wind, which will equal the power needs of approximately 45,000 local homes. Pattern's Spring Valley Wind project is expected to generate more than $20 million in tax revenue for White Pine County and the state of Nevada's Renewable Energy Fund over the next 20 years.
San Diego Gas & Electric (SDG&E) announced it has signed two new renewable contracts -- one with a subsidiary of San Diego-based enXco and the other with Arlington Valley Solar Energy II, LLC (a subsidiary of LS Power Development, LLC) for a combined total capacity of up to 237 MW of solar energy.
The Catalina Solar project to be developed by enXco will have the capacity to generate up to 110 MW from the sun, starting with delivery of 50 MW by the end of next year and the remaining 60 MW by June 2013.
"Catalina Solar represents enXco's largest utility-scale solar project to be developed in the U.S The 25-year contract with Catalina Solar, LLC calls for a ground-mounted photovoltaic (PV) system to be built in Kern County on property in the Rosamond/Tehachapi area. The project is expected to connect to the statewide power grid via Southern California Edison's Tehachapi Renewable Transmission Project (TRTP). The TRTP, like SDG&E's Sunrise Powerlink, is a CPUC-approved transmission upgrade built specifically to deliver green energy to the state's power grid from remote areas where the energy is produced.
The agreement with Arlington Valley Solar Energy II (AVSE II) calls for up to 127 MW to be generated by ground-mounted PV panels at a solar farm to be built in Maricopa County, Ariz., with delivery of at least 25 MW by the end of the first quarter of 2013, and another 25 MW delivered every two months until the project is built out.
SDG&E will receive both the power and the renewable energy credits from this project, which will connect at the same substation in Arizona where SDG&E's Southwest Powerlink begins. The green energy produced will be scheduled into the California Independent System Operator's statewide grid.
In late 2010, the Kansas City Board of Public Utilities (BPU) signed an agreement partnering with Lawrence, Kansas-based The Bowersock Mills and Power Company (BMPC) to purchase 7 MW of hydroelectric power over the next 25 years, providing additional renewable energy resources to BPU’s existing power generating mix.
As background, BMPC has been in continuous operation on the Kansas River since the late 1800’s, first as a flour mill and provider of mechanical energy, and then as an electrical provider starting in 1905. The company’s hydroelectric project on the Bowersock Dam has been supplying electricity to Northeast Kansas on a continuous basis since. Today, the dam is owned by BMPC, but maintained by the city of Lawrence, which depends on the dam to pool water for its Kaw River Water Treatment plant.
As part of an agreement signed last year between BMPC and BPU, BMPC is undertaking a plant expansion project to build an additional powerhouse on its existing site, tripling the current energy production capacity. The project is expected to maintain BMPC’s current status as a “low-impact” hydropower plant (1 of only 71 in the country today).
The Pima County Board of Supervisors voted unanimously to approve construction of a 25-megawatt (MW) photovoltaic array in Avra Valley that will become Tucson Electric Power’s (TEP) largest single source of solar energy.
The system will be built, owned and operated by Fotowatio Renewable Ventures (FRV) on 305 acres of former farmland at the northwest corner of Sanders and Emigh Roads. TEP will purchase all of the energy the system produces – enough to power more than 4,500 homes. Construction will begin this fall, and the system is scheduled to be completed by April 2012.
For more information on Renewable Energy Projects and Update please visit:
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You can register for our free McIlvaine Newsletters at: http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm
Bob McIlvaine
President
847 784 0012 ext 112
rmcilvaine@mcilvainecompany.com
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Company. All Rights Reserved
191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax; 847-784-0061
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