Power Air Quality Insights No

Power Air Quality Insights
No. 153 April 17, 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.

· “Hot Gas Filtration at 850^oF Will Change APC” - “Hot Topic Hour” on May 1, 2014

· Market for New Gas Turbines and Associated Equipment Will Exceed $29 Billion This Year

“Hot Gas Filtration at 850^oF Will Change APC” – “Hot Topic Hour” on May 1, 2014

The highly visible power plant steam plume directly correlates to lost energy, water, CO₂, and money. By filtering the gas before the SCR or as part of the SCR and then following with a highly efficient heat exchanger, all the losses become pluses. The challenge has been to develop a filter to do this. Hot ESPs were developed in the U.S. but had operating and efficiency problems. Rigid ceramic filters were unsatisfactory in terms of maintenance and energy costs. Now, thanks to the latest flexible ceramic media designs, the hot gas filter is now a commercial and attractive option.

We are setting up a whole website devoted to this important subject. Our webinar on May 1^st will be at a high level with a discussion rather than long presentations. There will be some presenters such as Richard Lydon of Clear Edge, but considerable time will be spent reviewing the range of options available. They include:

· Low efficiency hot ESP to protect SCR and allow more efficient heat exchange.

The discussion will also include the ways that the 850^oF heat can be extracted from the flue gas prior to scrubbing. The two benefits are heat recovery and elimination of the scrubber plume and lost water. The uses of recovered heat such as condensers, ethanol, lignite drying, distillation of seawater and zero liquid discharge will be discussed.

The primary focus will be on power plants, but other applications will be covered as well. The fact that the hot ESP is prior to the SCR in a cement plant is indicative of the need to share technologies among industries.

To register for this webinar which is free to owner/operators of air pollution systems, click on:

Market for New Gas Turbines and Associated Equipment Will Exceed $29 Billion

Over $29 billion will be spent for gas turbine and combined cycle systems by power plants, refineries, oil and gas producers and other industries this year. This is the forecast provided by the McIlvaine Company in Gas Turbine and Combined Cycle Supplier Program. (www.mcilvainecompany.com)

Equipment Costs for Conventional Combined Cycle Power Plant Rated 620 MW Equipment	% of Total Plant Cost	Cost Per Plant (Mil $)	Total Industry Spend Per Year (Mil $) (113 Plants)
Gas Turbine/Gen Set	23%	$130	$15,000
HRSGs	10%	$57	$6,500
Steam Turbine/Gen Set	7%	$40	$4,600
Pumps (major systems, only)	1.5%	$9	$1,000
Valves (major systems, only)	2%	$11	$1,300
Expansion Joints	0.1%	$0.6	$67
Other Systems	1.5%	$9	$1,000
Total	45%	$256	$29,467

The expenditure for repairs and replacements will also be sizable. Over $400 million will be spent just for replacement filters for the turbine air intakes. Over $1 billion will be spent for replacement parts and complete replacement pumps and valves.

The amount spent for catalyst and for ammonia to reduce NO_x will be substantial, and is anticipated to grow robustly as most new units are required to meet stringent air emission limits. The investment for treatment chemicals is also increasing as most of the new units are utilizing steam turbines in combined cycle operation.

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

Sales of air filters for purifying ambient and indoor air will exceed $2.5 billion in the Americas next year. This is the latest forecast in Air Filtration and Purification World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

The U.S. will be the largest purchaser with sales exceeding all the other countries in North and South America combined. However, the growth rate in Brazil and Mexico is exceeding that of the U.S.

Industry	2015
Total	2,566
Bioclean	166
Commercial	625
Electronics	115
Metals	244
Other Industries	499
Power	179
Residential	738

The biggest applications are residential and commercial buildings. Sales for these applications will exceed $1.3 billion. In the power industry, the big use is for filtration of the inlet air for gas turbines. These turbines are used for electricity generation and for combined steam and power in the oil and gas and other industries. The advantages of using highly efficient HEPA filters have been proven. As a result, the industry is slowly moving toward these more expensive filters for turbine intakes. This will create a double-digit revenue growth over the next few years.

Bioclean applications include hospitals and pharmaceutical manufacturing plants. The hospital market is relatively small compared to its potential. A greater use of highly efficient filtration systems would substantially reduce transmission of disease among patients and staff.

Many industrial plants incur substantial filter costs because they have a very large intake of air. The reason is that they are discharging large quantities of air through dust collectors. This loss must be replaced by ambient air. Plants which have welding, woodworking, or machining operations are in this category.

Another application is the use of air filters following dust collectors. This combination is seen where the plant wants to return air for reuse in the plant. The air needs to be cleaner than achieved with the dust collector. Therefore, a HEPA filter is inserted in the recirculation duct.

CEMEX Announces Completion of Financing of One of the Largest Wind Farm Projects in Latin America

CEMEX, S.A.B. de C.V. announced that it has successfully completed the financing of Ventika, a project comprising the construction of two 126 MW wind farms each, for a total nominal capacity of 252 MW to be located in General Bravo, Nuevo Leon, Mexico.

The investment for the project is approximately U.S.$650 million, of which 75 percent correspond to debt and 25 percent to equity. The debt financiers are the North American Development Bank, Banobras, Nafin, Bancomext and Santander. The equity partners are Fisterra Energy, a company majority owned by funds managed by Blackstone, CEMEX and private investors.

CEMEX developed the project, providing its industry-leading technical expertise and skills in the clean energy industry. In addition, CEMEX will supervise the construction process and, once operational; will manage the wind farms without exercising control and owning a minority stake of 5 percent of the equity, therefore, the project will not be consolidated into CEMEX’s balance sheet and the project´s debt will have no recourse to CEMEX.

These wind farms will supply renewable energy to facilities belonging to FEMSA, DEACERO, Tecnológico de Monterrey and CEMEX, under the self-supply scheme approved by the Mexican Energy Regulatory Commission. In addition, more off-takers could be brought in the near future.

Construction will begin in the 2nd quarter of 2014 and commercial operation is expected by the 2nd quarter of 2016.

Tucson Electric Power (TEP) plans to meet customers' energy needs over the next 15 years by reducing its coal generation capacity by about one-third; acquiring new cost-effective natural gas-fired resources; and continuing its expansion of renewable power and energy-efficiency programs.

TEP's plans are outlined in the 2014 Integrated Resource Plan (IRP) the company filed with the Arizona Corporation Commission (ACC) on April 1. The IRP describes how TEP plans to meet energy demand requirements through 2028, providing safe, reliable and reasonably priced service to customers while satisfying regulatory requirements and improving the environment.

According to current projections, the company expects to add more than 50,000 customers over the next 10 years. Peak demand is projected to grow annually by about 1 to 1.5 percent.

By 2028, TEP anticipates that its combined solar, wind, and biogas resource capacity will increase from 157 MW today to 788 MW – enough energy to power approximately 136,000 homes. TEP also plans to reduce its need for new generating resources through a range of cost-effective, industry-proven energy-efficiency programs that will result in a cumulative capacity reduction of 312 MW, which is equivalent to the annual electric energy use of approximately 167,000 homes.

By 2028, TEP projects that its resource portfolio will consist of 43 percent coal-fired generation and 36 percent natural gas-fired resources. The remaining 21 percent will be made up of renewable energy and energy efficiency resources.

Scatec Solar, the global independent solar power producer, received the final approvals necessary to proceed with the building of an 80 MW (ac) PV (photovoltaic) solar plant in Iron County, UT. The Utah Red Hills Renewable Energy Park, set to be built on a site with excellent solar irradiation, will generate around 210 million kilowatt hours (kWh) of electricity per year, which will be fed into the grid under a twenty-year Power Purchase Agreement (PPA) with PacifiCorp. Construction is estimated to start in the third quarter of 2014 and when complete, the plant will be Utah's largest solar energy generation facility.

Scatec Solar entered into the twenty-year PPA with PacifiCorp for the purchase of all of the project's energy output and capacity in December 2013. PacifiCorp delivers electricity to customers in Utah, Wyoming, and Idaho through Rocky Mountain Power.

The ground-mounted photovoltaic solar facility is being developed on approximately 650 acres of privately-owned land in Parowan, UT; it will deploy approximately 325,000 PV modules on a single-axis tracking system, and will interconnect to an existing PacifiCorp 138 kV line in the adjacent Parowan Valley Substation.

Integrated Gasified Biomass Power Plant Will Use GE Gas Engine Technology to Help Bulgaria Achieve Greater Energy Independence

To reduce Bulgaria’s heavy dependence on imported energy, a landmark biomass-to-energy plant powered by GE’s Jenbacher gas engine technology is being built near Stroevo, in Plovdiv province.

The 5-megawatt (MW) Karlovo plant will use three of GE’s fuel-flexible, robust and high-efficiency Jenbacher engines—one J612 and two J620 units—powered by syngas derived from straw and wood chips and will produce enough electricity to power 2,000 homes. Such organic waste is normally difficult to gasify effectively, but tight integration of EQTEC Iberia’s biomass-gasification technology with GE’s proven gas engines will provide high levels of emissions performance, efficiency and economy.

Scheduled for completion by the end of 2014, the plant is being built by EQTEC Iberia, part of Spanish holding company Ebioss Energy AD. It is the latest development in Ebioss’ strategy to apply its Integrated Biomass Gasification Cogeneration Power Plant (IBGPP) technology throughout Europe to help countries reduce their dependence on foreign energy supplies and to increase the proportion of energy from renewable sources. The country’s target is for 16 percent of its energy demand to be met by domestic renewable sources by 2020, but at present more than 70 percent of its energy is from imported natural gas and oil.

NASA Signs Agreement with German, Canadian Partners to Test Alternative Fuels

NASA has signed separate agreements with the German Aerospace Center (DLR) and the National Research Council of Canada (NRC) to conduct a series of joint flight tests to study the atmospheric effects of emissions from jet engines burning alternative fuels.

The Alternative Fuel Effects on Contrails and Cruise Emissions (ACCESS II) flights are set to begin May 7 and will be flown from NASA's Armstrong Flight Research Center in Edwards, CA.

NASA's DC-8 and HU-25C Guardian, DLR's Falcon 20-E5, and NRC's CT-133 research aircraft will conduct flight tests in which the DC-8's engines will burn a mix of different fuel blends, while the Falcon and CT-133 measure emissions and observe contrail formation.

ACCESS II is the latest in a series of ground and flight tests begun in 2009 to study emissions and contrail formation from new blends of aviation fuels that include biofuel from renewable sources. ACCESS-I testing, conducted in 2013, indicated the biofuel blends tested may substantially reduce emissions of black carbon, sulfates, and organics. ACCESS II will gather additional data, with an emphasis on studying contrail formation.

Understanding the impacts of alternative fuel use in aviation could enable widespread use of one or more substitutes to fossil fuels as these new fuels become more readily available and cost competitive with conventional jet fuels.

§ St. Joseph Energy Center wins extension for Indiana Power Plant Project

§ Coal-fired Clinch River (VA) Power Plant Converting Two Units to Natural Gas

§ Clyde Bergemann receives $20 Million Contract to supply Emissions Control Equipment in Nova Scotia

§ Foster Wheeler Global Power Group Subsidiary awarded contract by Marubeni for Design and Supply of Two Coal-fired Steam Generators in Thai Binh Province, Vietnam

§ Flowserve wins Lichterfelde, Germany Power Plant Pumping Systems Contracts

§ Ghorasal 365 MW Gas-fired Power Plant approved in Narshingdi Bangladesh

§ Capital Power’s proposed Genesee 4 and 5 Natural Gas-fired Power Plants near Edmonton, Canada

§ Alstom receives Contracts to supply Turbines for Chilean Natural Gas-fired Power Plant

§ Rosatom sends $1.39 Billion for Turkey Nuclear Power Plant Construction

§ CEZ cancels $15 Billion Tender for New Nuclear Reactors at Temelin in Czech Republic

§ Mercury Chemicals in Fuels and Scrubbers was the Hot Topic Hour April 10

§ Measurement of Gas Turbine Emissions including NH3 is the Hot Topic Hour on April 17

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
April 17, 2014	Measurement Of Gas Turbine Emissions Including NH₃	Six different options
May 1, 2014	Hot Gas Filtration at 850^oF Will Change APC	Could change the whole back end
May 8, 2014	Sorbent Traps vs. Mercury CEMS	Sorbent traps are competitive
May 15, 2014	Gas Intake Filters: HEPA or Medium Efficiency	More information
May 29, 2014	Stellite Delamination in Power Plant Steam Valves	More information
June 5, 2014	Dry vs. Wet Cooling	Surprising number of ACC’S. Why?
June 12, 2014	HRSG Issues (Fast Start, Tube Failures)	Lots of challenges to cycle 200 X/yr
June 26, 2014	CCR	$ billions Needed
July/August 2014	Boiler Feedwater Treatment Condensate Polishing for Peaking Turbines 316 B Water Issues Gas Turbine Permitting Issues *Give us your opinion about topics we should consider*

§ Capital Power’s proposed Genesee 4 and 5 Natural Gas-fired Power Plants near Edmonton, Canada

§ Alstom receives Contracts to supply Turbines for Chilean Natural Gas-fired Power Plant