Power Air Quality Insights No

Power Air Quality Insights
No. 139 January 9, 2014

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· China Will Account For 85 Percent of the NO_x Control Expenditures This Year

· Indian Market for Air and Water Treatment Equipment Will Reach $23 Billion This Year

· “Corrosion Issues and Materials For APC Systems” will be the Hot Topic on January 16, 2014

China Will Account For 85 Percent of the NO_x Control Expenditures This Year

The world market for new selective catalytic systems for industrial stationary applications will exceed $23 billion in 2014. Eighty-five percent of the purchases will be for Chinese power plant and industrial facilities. This is the conclusion reached by the McIlvaine Company in NO_x Control World Markets. (www.mcilvainecompany.com)

Country	2014
China	20.0
Germany	0.1
Japan	0.1
Poland	0.3
South Korea	0.2
Taiwan	0.3
Turkey	0.2
United Kingdom	0.2
United States	1.1
Other	0.6
Total	23.1

The massive five-year program for NO_x reduction from power and industrial plants was already in place prior to the severe smog conditions in China in the last few months. The result is that the polluters are striving to meet the new regulations earlier in the five year window rather than later. Most of the Chinese expenditures will be for existing power plants with about 20 percent for new power plants. Expenditures by the waste-to-energy and other Chinese industries will be modest in comparison.

The U.S. market will exceed $1 billion this year which is down by 80 percent from the peak five years ago. The 2014 orders will be a mix of retrofits for coal-fired power plants and new systems for gas turbines.

The market varies from year to year and country by the fact that individual coal-fired projects can exceed $200 million. So, if there are several projects in one year and none in the next, there will be large peaks and valleys. This environment has made it difficult to make a profit if SCR is the only business. As a result, the suppliers of boilers are among the largest suppliers of the systems. Their business is less variable due to product diversity.

Indian Market for Air and Water Treatment Equipment Will Reach $23 Billion This Year

The Indian market for air, gas, liquid and water flow control and treatment products will reach $23 billion this year. These forecasts were determined by McIlvaine Company through aggregating the individual forecasts in a number of McIlvaine market reports. (www.mcilvainecompany.com)

Product	$ Billions	% of World
Air and Water Monitoring	1.3	low
Air Filters	0.2	low
Cartridges	0.5	3
Cross-flow Membrane Systems and Modules	0.7	7
Electrostatic Precipitator	2.1	22
Fabric Filter Systems and Bags	0.8	low
Flue Gas Desulfurization Systems	0.2	low
Industrial Pumps	2.3	5
Industrial Valves	2.2	4
Liquid Macrofiltration	0.5	9
NOx Control Systems	>0.01	Very low
Other	11
Scrubbers and Adsorbers	0.5	5
Sedimentation and Centrifugation	0.7	10
Total	23	8

The world flow control and treatment market will rise to $345 billion in 2014. India will represent 8 percent of the total. The power, water and pharmaceutical industries are among those which are increasing purchases at double-digit rates.

India will buy 22 percent of all the precipitator systems and parts this year. Precipitators are the primary collection device in India to capture the flyash emitted from coal-fired power plants. Fifty percent of India's emissions came from the coal-fired power sector. This revelation came as the result of satellite monitoring which revealed that much of the emission was coming from power plants which were outside the cities and beyond the range of the ambient measuring system which is in place. India is spending very little to reduce SOx.

In the water sector, there are significant expenditures to increase drinking water capacity. As a result, India will purchase 5 percent of the industrial pumps in 2014.

The market for cartridges and membrane systems is bolstered by the growth in the Indian pharmaceutical industry. International drug manufacturers are building plants in India to manufacture generics. Here are some of the plants underway

LOCATION	CITY	PROJECT TITLE	SIC DESCRIPTION	PRODUCT
India		Akorn-2	Pharmaceuticals	Injectable Pharmaceuticals
India		Hikal	Pharmaceuticals	Pharmaceuticals
India		Sanofi Pasteur/Shantha Biotechnics	Pharmaceuticals	Vaccines
India	Maharashtra	Omkar Specialty Chemicals (OSCL)	Pharmaceuticals	Active Pharmaceutical Ingredients
India	Pharmacity Sp. Econ. Zone (SEZ) Vishakhapatnam, Andhra Pradesh And Gagillapur	Granules/Omnichem Pharmaceuticals	Pharmaceuticals	Advanced Pharmaceutical Ingredients
India	Punjab	Nectar Lifesciences	Pharmaceuticals	Pharmaceutical Ingredients
India	Sanand, Gujarat	Teva/Procter & Gamble	Pharmaceuticals	Consumer Health And Over-The-Counter Products
India	State In Western India	Helvoet Pharma-2	Packaging	Pharmaceutical Packaging

The liquid macrofiltration and sedimentation/centrifugation markets are relatively strong in India. One reason is the growth of the water and wastewater infrastructure. A reason that the market share is 9 percent and 10 percent respectively is that other countries are showing preference for the more efficient cross-flow membrane and cartridge products.

ReneSola Ltd, a leading brand and technology provider of solar photovoltaic products, announced it has been awarded a contract to supply 420 MW of solar panels to a leading solar project developer based in Japan. ReneSola's Virtus II 300W 72-cell high-efficiency polycrystalline PV panels will be installed in over ten ground-mounted power plants in the mountain regions of Japan, and will provide power to the surrounding residential homes.

ReneSola will begin delivery of shipments for the project in January 2014, and expects to complete delivery by December 2015.

Plainfield Renewable Energy Project Substantially Complete and Commercially Operational

Leidos, an engineering, national security and health solutions company, announced the Plainfield Renewable Energy project in Plainfield, CT, has reached substantial completion on December 21, 2013 under the terms of the facility's engineer, procure, and construct (EPC) contract. The facility has met all conditions to qualify as an ISO New England (ISO-NE) market asset and achieved commercial operation under the terms of its interconnect agreement with ISO-NE. The commercially operational plant has also met the eligibility requirements under the American Recovery and Reinvestment Act for a 1603 cash grant.

As one of the only Class 1 renewable biomass plants in the state, the facility will power the equivalent of 37,000 homes using a variety of fuel sources, such as wood from construction and demolition debris, recycled wood pallets and land clearing materials. Connecticut Light & Power will purchase 80 percent of the power from the plant based on a 15-year off-take agreement, based on the plant's status as a renewable power source.

Leidos will operate the plant and commence marketing efforts to sell the facility to renewable power plant investors in an effort to maximize the value of the investment for shareholders.

Canadian Solar Connects its Tumushuke 30 MW Solar Power Plant to the China State Grid

Canadian Solar Inc., announced the successful completion and grid connection of a 30 MW ground mounted solar power project in Tumushuke City, Xinjiang Uyghur Autonomous Region in Western China. This project was developed by CSI Solar Power (China) Inc., a subsidiary of Canadian Solar Inc., with Gaochuangte New Energy as the EPC contractor.

Covering an area of about 100 hectares, the project is 9.5 kilometers away from the downtown area of Tumushuke City. Construction on the project commenced in June 2013 and ended in December 2013, with electricity generation starting in the late December of 2013. Approximately 129,600 Canadian Solar CS6P-235P modules with power output of 235Wp were used. With the annual electricity generation projected to be 41.97 million kWh, this solar power plant is expected to displace over 13.4 thousand tons of standard coal consumption every year, while reducing annual emissions of carbon dioxide, sulfur dioxide and oxides by over 35 thousand tons, 114 tons and 99 tons respectively.

NaturEner, which owns and operates three wind farms in Montana, sued a California utility in December for breaching contracts to invest in the Rim Rock wind farm. The lawsuit also seeks to prevent the utility from reneging on its contractual promise to buy the renewable energy generated at the facility.

San Diego Gas & Electric, a subsidiary of energy conglomerate Sempra Energy, had agreed to invest approximately $285 million in the 189-megawatt Rim Rock wind farm and to purchase renewable energy credits as part of its obligation under California law to use renewable power. SDG&E has been purchasing renewable energy credits from Rim Rock since the project began operating 16 months ago.

But the utility informed NaturEner that it would not honor the deal, wrongfully claiming that the company had not satisfied some of the provisions of the contracts, mostly related to the protection of eagles and other birds.

In fact, NaturEner has implemented industry-leading wildlife conservation measures at the Rim Rock project. These measures include the installation of innovative radar detection systems for eagles, and the positioning of trained avian biologists at different locations who can immediately pause wind turbines, in coordination with NaturEner's 24/7 real-time Operations Center, if there is even a slight risk of potential harm to an approaching eagle. These protections have been very effective, and no eagle has ever been harmed at the project.

NaturEner's lawsuit, filed in Montana District Court in Toole County, argues that the utility's actions are motivated by buyer's remorse, because of the falling price of renewable power.

A123 Energy Solutions Announces First Commercially Operating Grid Energy Storage Installation in China

A123 Energy Solutions announced that a new 2-megawatt Grid Storage Solution™ for Ray Power Systems Co. Ltd., a Beijing-based energy services company, is now in commercial operation providing frequency regulation services. Located in Beijing, this is A123 Energy Solutions’ first deployment in China in commercial operation. The containerized 53-foot long battery is one of A123’s widely deployed High Rate (HR) Grid Storage Solutions and stabilizes the grid to ensure power quality.

The 2 MW HR Grid Storage Solution, a high power battery based on A123’s proprietary Nanophosphate® chemistry, is well suited for the rapidly changing power profiles of frequency regulation service, and able to serve dual duty – as both a controllable 2 MW load as well as a 2 MW generator – in essence providing 4 MW of ramping capability. Deployed worldwide in revenue service since 2009, the HR Grid Storage Solution forms the bulk of the grid energy storage product line that A123 Energy Solutions has delivered to date.

§ Arizona Public Service Completes Purchase of Larger Stake in Four Corners 4 and 5

§ 17 Companies Shortlisted for 4000 MW Odisha and 4000 MW Cheyyur UMPPs in India

§ Mitsubishi and Doosan to build 2x600 MW Vinh Tan Power Plant in Vietnam

§ Investment Stakes may change in 1320 MW Gayatri Power Project in Andhra Pradesh, India

§ SO₂ Emissions in India increased by over 60 Percent between 2005 and 2012

§ Precipitator Problems at Chandrapur Power Plant with Emissions of 600 mg/Nm³

§ Units 4-7 at Wanakbori will be upgraded with New Precipitators to meet 50 mg/Nm³

§ Wärtsilä to provide two 20 MW CHP Plants in Chelyabinsk Region of Russia

§ Siemens to provide Gas Turbines for 2060 MW Rabigh 2 Combined cycle Project (Saudi Arabia)

§ CEZ suspends Plans for Combined Cycle Power Plant in Melnik, Czech Republic

§ Enel and ArcelorMittal sell Stakes in Cernavoda Power Project in Romania

§ $425 Million will be Spent to Monitor Gas Turbine and Combined Cycle Plants This Year

§ Coal-fired Power Plants will spend just under $1 Trillion for Products and Services in 2014

§ “Air Preheaters and Heat Exchangers” will be the Hot Topic on January 9, 2014

“Corrosion Issues and Materials for APC Systems” will be the Hot Topic on January 16, 2014

Corrosion is an ever-present issue with power plant and APC system design engineers as well as maintenance personnel at utilities. Corrosion occurs in virtually every component of a fossil-fueled power plant from the material handling systems, the boiler and ducts to the auxiliary systems for heat recovery and scrubbers and baghouses for pollution control all the way to the stack. Corrosion is both a chemical process and a physical mechanism. The chemical composition of the coal- or fuel-oil (chlorine and sulfur content) and chemicals injected into the boiler or exhaust gases to control air pollution emissions and wastewater affect the potential for corrosion. The distribution of gases in ducts as well as temperature, water content and particulate load contribute to mechanical flow corrosion caused by abrasion and buildup of corrosive materials in a specific place in a duct or vessel.

Over the years, many methods have been developed to fight corrosion. These include a variety of new materials for ducts, liners, tubes and even pumps and valves, flow modeling, duct designs and inlet filters to minimize particulate and flow corrosion and injection of chemicals to control acid gases. Perhaps the single most important issue is to initially select the correct material for each application based on the environment that it is expected to operate in. FRP composites have become very popular for use in scrubbers, tanks, pipe and stack liners because of their inherent resistivity to acids and lower cost compared to exotic metals. But is FRP still the best choice? Are metals, ceramics or glass now a better choice? Which material is best for each specific component in each air pollution control device? Which other technology or combination of technologies may be a better more economical choice with less expensive materials especially for an existing plant – chemical additions, flow modeling and installation of guide vanes, inlet filters, addition of another heat exchanger to keep gases above acid dew points?

The following speakers will discuss the latest developments in technology and materials for corrosion prevention or reduction for the various APC equipment in a typical fossil-fueled power plant based on plant specific site conditions, fuel type and characteristics, capital cost, maintenance and lifetime and provide an update of the current developments, ongoing testing or performance of installations of corrosion resistant materials or new technology being developed at their respective companies.

Gary Hall, Consultant to and former Manager of Organic Technology for Sauereisen, Inc., will present “Material Considerations for Maintaining FGD Infrastructure.” His presentation will review the environmental considerations of fossil-fuel generation and provide an indepth overview of the materials used to increase life expectancy. Corrosion resistant organic and inorganic technologies are covered with field applications and “real world” solutions throughout.

Lewis Shoemaker, Director of Application Engineering & Business Development at Special Metals Corporation, will present “Nickel Alloys Solve Corrosion Problems in Wet Limestone FGD Systems.” Since the early 1980s, nickel-chromium-molybdenum corrosion-resistant alloys have been widely used in FGD service, providing reliable service in the aggressive environment. In recent times, utilities tried to reduce costs by building FGD absorber vessels from duplex steels. In the USA, an estimated 85 vessels have been built and are suffering severe crevice attack, often within a few months of start-up. A corrosion testing program conducted by Special Metals Corp./Research & Technology has shown that an advanced grade of super-austenitic stainless steel, alloy 27-7MO, and nickel-chromium-molybdenum alloys C-276, 22 and 686 are resistant to FGD crevice attack. Thus, wallpaper cladding with thin alloy sheet is a viable repair scenario for the failing duplex steel vessels.

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 $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report subscribers and are $400.00 for non-subscribers.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT
January 16, 2014	Corrosion Issues And Materials For APC Systems	More information
February 6, 2014	Review Of EUEC
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