·        Chinese Pump Revenues to Exceed $8 Billion in 2014

·        Coal will Generate 77 Percent of the Flow Control and Treatment Revenues in the $45 Billion Power Market

·        Flue Gas Desulfurization Revenues Will Range between $3 Billion and $8 Billion/Yr Over the Next Three Years

·        Transmission Lines Needed to Move Renewable Power

·        “Mercury Measurement and Control – Part 3” is “Hot Topic Hour” on April 18, 2013 at 10 A.M. DST

·        Headlines for the April 5, 2013 - Utility E-Alert

·        McIlvaine Hot Topic Hour Registration

Chinese Pump Revenues to Exceed $8 Billion in 2014 

Industrial pump purchases in China will rise from $7.4 billion this year to over $8 billion in 2014 for an increase of eight percent. This is the latest forecast in Pumps World Markets published by the McIlvaine Company (www.mcilvainecompany.com)

Chinese Pump Revenues

($ millions)

Municipal water and wastewater will be the leading application segments. China is rapidly building its water infrastructure. It is also adding secondary treatment capacity to treat wastewater.

Power is the next largest category and will account for pump revenues in excess of $1.1 billion. China is building more coal-fired power plants each year than any other country. It is also retrofitting scrubbers to capture SO₂. These scrubbers require large pumps.

The stone and cement industry is also a big segment. China produces more than 50 percent of the worlds cement. The mining industry is also a big purchaser. China is the world’s leading coal producer. Because of lack of rail infrastructure more of this coal is conveyed in slurries to the power plants than in other countries.

China is moving forward in the oil and gas sector. It is a leader in direct liquefaction of coal. This process requires a substantial investment in pumps.

For more information on Pumps World Markets click on http://home.mcilvainecompany.com/index.php/component/content/article?id=75

Coal will Generate 77 Percent of the Flow Control and Treatment Revenues in the

$45 Billion Power Market

In 2013 power plants around the world will invest over $45 billion in flow control and treatment equipment. Seventy-seven percent of this total will be utilized in coal-fired power plants. The next largest segment, which is gas turbines, will account for less than 10 percent of the total. These are the conclusions reached by aggregating the forecasts in a number of McIlvaine market reports (www.mcilvainecompany.com).

Flow Control and Treatment Revenues 2013

($ Millions)

One reason that coal-fired power plants will dominate the purchases is that they will account for nearly half of the 276 GW of new capacity which will be installed in 2013. The second reason is that there is a much bigger investment in flow control and treatment per unit of capacity. The solar generating capacity increase will be only 5 GW but total photovoltaic sales will be 35 GW.

The filtration and separation segment includes water and wastewater chemicals which comprise more than 50 percent of the total. Sedimentation, centrifugation, macrofiltration, crossflow membranes and cartridges account for the remainder. Disinfection, ion exchange, and biological treatment are not included.

The relatively high value of the nuclear valve segment is due to the large number of replacement valves being purchased. This has to do with safety concerns.

The air treatment segment includes NO_x control, flue gas desulfurization (FGD), fabric filters, and electrostatic precipitators. Catalysts and bags are also included.

Instrumentation includes continuous emissions monitoring systems (CEMS) for stack gas, combustion gas analyzers, water monitoring instruments and relevant control systems including advance process control and distributed control systems.

For more information on the relevant air, water, and energy reports click on www.mcilvainecompany.com

Flue Gas Desulfurization Revenues Will Range between $3 Billion and $8 Billion/Yr

Over the Next Three Years

Over the next three years revenues for new flue gas desulfurization (FGD) systems (not including repairs) will rise and fall over a range of $3 billion to $8 billion per year. The reason for the substantial fluctuation is the size of individual orders, the definition of the cost, scope, and chronology. These new forecasts appear in FGD World Markets published by the McIlvaine Company (www.mcilvainecompany.com)

Minimum FGD Orders

($ Millions)

The above forecast is based on orders and not actual booked revenues. It assumes a four year delay from order to startup for FGD systems for new units. It assumes three years for retrofits. The revenue per MW is as low as $70/kw for new FGD systems in China, which represents typical vendor scope in China. Since two-thirds of the market (in MW) is for new coal-fired power plants in China, this low value makes a big difference in the estimate of market size.

The present forecasts also assume a slowdown in orders for new Chinese power plants in the next three years, but this forecast is subject to change as plans become more firm. In China the turnaround on a new coal-fired power plant is as little as two years.

By contrast the average retrofit project in the U.S. costs $300-400/kw. This includes lots of cost borne directly by the utility and also costs of new fans and other components which are typically included by the utilities in estimating their project costs.

The year 2014 will be a bigger year in the Americas segment due to the new U.S. Utility MATS rule. This requires compliance with hydrogen chloride emission limits. The FGD scrubbers remove both SO₂ and HCl. There are some new FGD systems in Latin America. Chile is installing a number of dry FGD systems.

In Europe there are some new coal-fired power plants and replacement of existing old FGD systems. There is little activity in Africa.

Asia is the big market. It will account for 50 to 70 percent of the total over the three year period. China will be the largest Asian purchaser. It is installing FGD with all the new coal-fired power plants. Also there are retrofit projects driven by tougher SO₂ limits. The Japanese market may rebound due to an initiative to rely on coal to a greater extent.

India offers considerable long range potential. To date there have been a few seawater scrubbers installed on power plants, but most have no SO₂ removal devices. Tougher regulations are anticipated, so FGD companies are positioning themselves to pursue this market. Mitsubishi Heavy Industries is partnering with BHEL to pursue this opportunity. Other international suppliers such as Alstom are also active.

For more information on FGD World Markets, click on:

http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=48#n027

Transmission Lines Needed to Move Renewable Power

As the following examples illustrate new transmission lines are being constructed around the world to bring renewable energy to customers. McIlvaine’s Renewable Energy Projects and Update continues to track these installations.

ITC Submits ITC Great Plains Expansion Project to Southwest Power Pool

The ITC Great Plains Expansion Project plan was developed through more than a year of extensive study of regional needs. It identifies and proposes a package of high-voltage electric transmission projects designed to relieve system constraints impeding the export of excess energy capacity inter-regionally. The five projects involve seven states and more than 2,700 miles of new transmission line. This AC-based approach reflects the interconnectivity of the power grid and provides a solution to integrate a variety of energy sources, enhance overall grid reliability and provide flexibility and optionally throughout the Southwest Power Pool (SPP) regional transmission organization footprint.

Developed by ITC Great Plaines, LLC, a subsidiary of ITC Grid Development, the ITC Great Plains Expansion Project proposal involves five primary 345 kV AC transmission lines consisting of multiple west-to-east segments originating in Nebraska, Kansas, Oklahoma and Texas, and terminating in Iowa, Missouri and Arkansas. The project plan aligns with one or more of the ITP20 Planning Futures for which SPP (a regional transmission organization) recently issued a request for projects. ITC Great Plains submitted this proposal into the SPP ITP20 planning process and SPP will enter the draft project portfolio into its ongoing planning analysis and stakeholder review process. ITC Great Plains will work with SPP and other stakeholders in the SPP Integrated Transmission Planning (ITP) process, and other associated planning processes, to highlight the benefits for customers associated with these projects.

The ITC Great Plains Expansion Project provides a framework for relieving constraints in the underlying system for exporting energy from the western part of SPP to load centers east of the SPP footprint. The proposed transmission lines follow these general routes:

East-central Nebraska to north-central Iowa

Western Kansas to southern Iowa

Southwest Kansas to south-central Missouri

Western Oklahoma to south-central Missouri

Eastern Texas across southern Oklahoma to southwest Arkansas

Current ITC Great Plains projects and partnership successes

Salazar Approves Transmission Line for Campo Verde Solar Project

Secretary of the Interior Ken Salazar has approved construction of the transmission line for First Solar’s Campo Verde Solar energy project, which will cross public lands southwest of El Centro, CA.

The 139-MW solar energy project is expected to support more than 250 jobs through construction and operations, generate $17.5 million in local tax revenue over the life of the facility, and provide an estimated $239 million of financial benefits to local, county and state economies. At full capacity, when built, the Campo Verde Solar facility will produce enough electricity to power 41,700 homes.

Electricity from the Campo Verde photovoltaic plant will be transmitted to the San Diego Gas and Electric’s Imperial Valley Substation. The Campo Verde facility is located on about 1,443 acres of previously-developed, privately-owned land southwest of El Centro, CA. Interior, who has only authority over the section of the transmission line on federal lands, approved the right-of-way for 17 acres for the power line on public land, and Imperial County authorized the solar power plant on August 27, 2012. Because the development on private land is related to the federal Right-of-Way for the transmission line and the transmission line cannot cross public lands without Interior approval, the Environmental Assessment had to consider the cumulative impacts of the generation project in its analysis of the transmission proposal.

Windreich and TenneT Agree on Interim Connections for Offshore Wind Farm, Deutsche Bucht

The Windreich Group, which is comprised of British Wind Energy GmbH and TenneT TSO GmbH, has signed an agreement for the production of a temporary grid connection of the offshore wind farm, “Deutsche Bucht.” Subsequently, the wind farm Deutsche Bucht will be connected to the already-commissioned grid connection, BorWin2 by TenneT to serve as a temporary solution in order to generate power until the originally-intended wind farm grid connection, BorWin4, is completed. While BorWin4 is still in the tendering phase, BorWin2 is already under construction with a total capacity of 800 MW. The primary legitimate offshore wind farms are Veja Mate and also the 400-MW wind farm Global Tech I initiated by Windreich AG. After the grid connection BorWin4 is completed, the wind farm Deutsche Bucht in 2015 is secured, reckons Dipl.-Wirt.-Ing. (FH) Willi Balz. The CEO of Windreich AG states, “Our common interest in contract negotiations was to successfully contribute to the implementation of the energy transition, to which billions of Euros have been invested from both companies, respectively.” Lex Hartman, a member of the Board of TenneT also stresses, “We want to promote the development of offshore wind energy, so that the objectives of the energy transition can be achieved. I am therefore delighted that together with Windreich AG, we have quickly and constructively found a pragmatic solution for the wind farm Deutsche Bucht.

The installation commissioning and acceptance of the converter stations, cable conduction and installation of the AC cable will continue to be managed under the responsibility of TenneT TSO. These regulations shall not be affected by the temporary grid connectivity.

EIB Reinforces Its Support for Upgrading Poland’s Energy Distribution Network

The European Investment Bank (EIB) is lending PLN 950 million (approximately €230 million) over 15 years to ENEA S.A., the top company of the ENEA Capital Group, one of the four largest vertically-integrated energy groups in Poland. The loan, the Bank’s first operation with ENEA, will finance the maintenance, modernization and extension of the group’s electricity networks in the Northwest of Poland, managed by its regulated subsidiary ENEA Operator.

The EIB loan will help to implement ENEA’s four-year investment program in energy distribution, comprising some 40,000 independent and geographically dispersed distribution network upgrading schemes a year, including for example the installation of new, enlarged and refurbished assets.

The program will make possible the connection of some 25,000 new system users per year, contribute to meeting the challenge of the increasing demand for services, improve the reliability of the electricity supply by around 30 percent and help to reduce energy losses.

The EIB supports renewable energy, energy efficiency and energy infrastructure modernization projects in Poland while at the same time recognizing important energy security considerations. It has already provided €212 million in 2012 for the upgrading and extension of Polish electricity grids. Including the current operation, the EIB has granted loans to Poland’s energy sector amounting to some €2 billion.

Enbridge and Borealis Infrastructure Join NextEra Energy Canada to Bid for the Opportunity to Develop New Power Transmission in Northern Ontario

NextEra Energy Canada, Enbridge and Borealis Infrastructure announced that they have filed for regulatory approval to allow Enbridge and Borealis to acquire interests in NextEra Energy Canada’s subsidiary, Upper Canada Transmission, Inc. Upper Canada Transmission, Inc. intends to bid for the opportunity to develop a new transmission line in Northern Ontario between Wawa and Thunder Bay as a joint venture through a limited partnership among affiliates of NextEra Energy Canada, Enbridge and Borealis. The venture plans to operate under the name NextBridge Infrastructure.

The proposed Ontario East-West Transmission Tie is expected to increase reliability, allow for the retirement or conversion of northern coal facilities and increase the ability to develop renewable generation in the region. If selected, the consortium expects to develop, construct, own and operate the new line under the regulatory oversight of the Ontario Energy Board. The expected in-service date is as early as 2017.

An Ontario Power Authority report has identified the project as a 400-km, 230-kV transmission line with an estimated investment of $600 million. The report states that the cost of the project is expected to be outweighed by the savings to the rate payers of Ontario through lower congestion resulting in decreased generation costs, lower losses and increased liability.

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

“Mercury Measurement and Control – Part 3” is “Hot Topic Hour” on April 18, 2013 at 10 a.m. DST

NOTE: Because of the great interest in this subject and the number of persons that desired to make a presentation, we scheduled three Hot Topic Hours on “Mercury Measurement and Control” on March 28^th, April 11^th and April 18^th. Persons that registered for the first or second session will automatically be registered for the third.

Late in December of 2012, the U.S. EPA released the final “Utility MACT” rule, also referred to as the “Mercury and Air Toxics Standards” (MATS) rule, establishing mercury and air toxics standards for coal- and oil-fired electric generating units (EGUs) larger than 25 MW. Although several groups have filed lawsuits challenging various parts of the rule, the court has not stayed it. Therefore, all existing EGUs will have three years to comply with the standards although the rule allows states to grant specific units an additional year for equipment installation.

The mercury emission limits imposed by MATS on coal- and oil-fired boilers are very low, so low that it is questionable whether or not the required reductions can be achieved in all cases given the constraints imposed by reducing other pollutants simultaneously. Many also believe that it may be very difficult to measure mercury reliably and accurately to determine and prove what removal efficiency is actually being achieved.

Control of mercury emissions from coal-fired boilers is currently achieved via three general broad methods: use of coals with low mercury content along with coal preperation or washing, activated carbon injection (ACI), and various multi-pollutant control technologies in which Hg capture is enhanced in existing control devices for SO₂, NO_x, and particulates. Multi-pollutant methods include capture of Hg_p in PM control equipment and soluble oxidized H_g compounds in wet flue gas desulfurization (FGD) systems. SCR NO_x control systems are also used to enhance oxidation of elemental Hg⁰ in flue gas to increase the mercury removal in a wet FGD.

The overall scheme of air, water and waste disposal regulations such as CSAPR, NAAQS, 316a/b and RCRA will make it even more difficult to develop a strategy and select the most appropriate method for mercury control. An integrated approach that considers how to capture mercury as well as other pollutants and dispose of them in an environmentally friendly manner will be necessary.

The following speakers will help us understand the current situation relative to the monitoring and control of mercury from coal- and oil-fired power plants and address the key issues to be considered when developing the optimum strategy to achieve compliance with the MATS; discuss potential control technologies available for operators to achieve compliance and the advantages and disadvantages of the various control technologies as well as criteria for selecting specific technologies – existing facility configuration, existing control equipment installed, fuel type and others; present the multi-emission control technologies available and under development with their applicability, capabilities, and limitations and any other alternatives available to achieve compliance with the Utility MATS.

Presenters for Mercury Measurement and Control Part 3 on April 18th

Mark R. Sankey, Senior Specialist for AQCS at Bechtel Power Corporation, will present “Mercury Control for Coal-fired Power Plants – Interaction of Other Technologies”. His presentation will review the effectiveness of existing control equipment and capabilities of new equipment and technologies as they relate to control of mercury emissions.  The concepts of multi-pollutant control, co-benefits, and the interrelationships of various technologies and pollutants will be addressed.  This will include discussion of undesirable effects that occur due to interactions between various pollutants and technologies.

Neil C. Widmer, Sr. Manager/ Product Line at GE Power and Water, will present “Application of Combustion Optimization to Reduce Activated Carbon Requirements for MATS Compliance”. One of the challenges utilities will face is minimizing the cost of compliance. GE Power & Water has developed a process for the application of combustion optimization in conjunction with activated carbon injection (ACI) to reduce the amount of carbon injection needed to reach a specific mercury emissions target and, hence, significantly reduce operating costs. In this presentation, GE will show the results of a DOE sponsored program to demonstrate the benefits of combustion optimization in conjunction with ACI on a large utility boiler. The results show the challenges faced with ACI injection on a boiler equipped with a small ESP and demonstrate that GE’s approach to integrating combustion optimization into MATS compliance can help to reduce both mercury and NO_x emissions.

Robert (Rob) Nebergall, Global Business Manager for Emissions Control at Norit Activated Carbon, will discuss recent developments in the technology of activated carbon. Utilization of activated carbon for mercury removal continues to be refined as both manufacturers and customers develop the technology.  This presentation will cover some of the recent developments in technology and what impact it will have on the markets supply and demand.

Joe Stuart, TDC, LLC a Division of Genesis Energy Limited, will discuss “Achieving Maximum Mercury Emission Reduction from Your Wet Flue Gas Desulfurization”. Your wet flue gas desulfurization (FGD) system is likely an underappreciated piece of an overall cost effective mercury emission reduction strategy. Having been misdirected by the concept of “mercury re-emission”, the industry has missed the opportunity to maximize co-absorption of mercury in wet FGDs.  Applying basic engineering concepts to the mercury issue, an operating point can be found which reliably avoids stripping of elemental mercury (previously known as “re-emission”), maximizes the ability to absorb elemental mercury up to the mass-transfer limit of your system, and avoids the costs and side-effects of excess oxidation of mercury in the inlet gas.  Results from commercial scale trials will be presented.

Paul Barilla, Applications Engineer, and John Darrow, Associate, at W. L. Gore & Associates, Inc., will co-present for Gore. W.L. Gore & Associates has developed a unique approach to mercury control based on a sorbent polymer composite (SPC) material contained within a fixed-structure located in the gas stream. SPC has a high affinity for absorption and retention of mercury in both elemental and oxidized states and requires no sorbent or chemical addition, thus avoiding potential adverse effects on flyash salability and balance-of-plant equipment. The GMCS is ideally located in a wet FGD absorber vessel downstream of the mist eliminators, where it also serves as a barrier to scrubber re-emissions.  Removal of SO₂ is a co-benefit of the GORE Mercury Control System (GMCS).

To register for the Mercury Measurement and Control – Part 3 on April 18, 2013 at 10 a.m. (DST), click on:  http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.

Headlines for the April 5, 2013 – Utility E-Alert   

UTILITY E-ALERT

 COAL – US

• EPA finalizes Emission Limits for Mercury at New Power Plants
• Dominion to Retrofit Dry Scrubber at Brayton Point 3, Retire State Line
• TVA to begin FGD, SCR Retrofit at Gallatin
• EPA can try to Halt Retrofits, in Some Cases, before Completion
• EPA wants Supreme Court to review CSAPR denial
• Two Elk 320 MW Coal-fired Power Plant Granted another Delay
• NV Energy plans to eliminate Coal-fired Power by 2025
• Midwest Generation to Delay SO₂ Emissions Controls for Two Years
   

COAL – WORLD

• NTPC to invite Fresh Bids for 1600 MW Darlipalli Power Project in Odisha, India
• L&T wins EPC Contract for Chhabra Power Plant in Rajasthan, India
• 450 MW Power Plant in Gobi Desert to supply Power to Oyu Tolgoi Copper and Gold Mine
• TRF to deliver Coal Handling System to 1,980 MW Nabinagar in Bihar, India
• Poland’s PGE advised to quit 2x900 MW Opole Project
• Japanese Panel calls for Easing Rules on Approval of New Coal-fired Power Plants
• India Regulator allows Adani to raise Power Tariffs
• Central Java 614 MW Coal-fired Power Plant to be backed by Loan from China
• NTPC to shift Odisha Project to Gadarwara in Madhya Pradesh, India
   

COMBUSTION TECHNOLOGIES/BOILER EFFICIENCY

• Enel Selects ABB Control System to Improve Efficiency and Environmental Performance at Coal-fired Plant in Italy
• Jiangsu Huadian Jurong Power chooses Metso’s Automation for its Two 1,000 MW Units in China

GAS/OIL - US

• New Financing Details on 825 MW Moxie Energy Project in Pennsylvania
• Siemens and Bechtel to build 758 Temple Natural Gas-fired Power Plant Expansion

GAS/OIL – WORLD

• Jamaica looking at New Power Proposals
• NamPower starts Prequalification Process for EPC Contract for Kudu Power Project in Namibia
• 200 MW Combined Cycle Power Plant needed in Malta

GASIFICATION

• Southern’s Ratcliffe IGCC Power Plant will not seek DOE Loan Help

NUCLEAR

• India and Russia signed Agreement for Construction of Kudankulam 3 and 4
• Mitsubishi and Areva could build 4,500 MW Sinop in Turkey
• South Africa plans for Nuclear Power

BUSINESS

• Fuel Tech has Air Pollution Control Orders totaling $4.3 Million
• E.ON boost Stake in Brazil’s MPX to 36 Percent; At Least Six Joint Power Projects Planned
• 300 MW Shahjibazar Combined Cycle Project approved in Bangladesh
• MHI signs FGD License Deal with BHEL
• Thousands of Projects Worth Hundreds of $ Billions in Booming Oil and Gas Industry
• Mining Air Pollution Control Purchases to Exceed $2 Billion This Year
• Air & Water Pollution Monitoring World Markets Headlines for March 2013
• Industrial Boiler Update April 2013

HOT TOPIC HOUR

§  Industrial Boiler MACT Impact and Control Options – Part 2

§  “Mercury Measurement and Control – Part 2” is Hot Topic Hour on April 11, 2013 at 10 a.m.

§  Upcoming Hot Topic Hours

For more information on the Utility Environmental Upgrade Tracking System, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=72

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 Environmental Upgrade Tracking System. The cost is $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report subscribers and are $400.00 for non-subscribers.

To register for the “Hot Topic Hour’, click on:

http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.

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Bob McIlvaine
President
847 784 0012 ext 112

rmcilvaine@mcilvainecompany.com

www.mcilvainecompany.com

191 Waukegan Road Suite 208 | Northfield | IL 60093

Ph: 847-784-0012 | Fax; 847-784-0061