Power Air Quality Insights No

Power Air Quality Insights
No. 64 July 12, 2012

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.

· “Forecasts and Drivers for Coal, Nuclear, Gas and Renewables” – “Hot Topic Hour” July 19, 2012

“Forecasts and Drivers for Coal, Nuclear, Gas and Renewables” – “Hot Topic Hour” July 19, 2012

Next Thursday at 10 a.m. Central time, McIlvaine will display forecasts of future generation by each fuel type for the various regions of the world. The supporting discussion will analyze the factors on which the forecasts are based. Variables which could change the forecasts will also be addressed.

Participants will have the opportunity to ask questions relative to specific countries and to request and view individual country forecasts. During the meeting there will be access to the McIlvaine Fossil and Renewables market reports. Some of the topics which will be included are:

· New technologies including oxy combustion, wave, algae and small modular reactors

· Combining power generation with other processes such as production of liquids and heat

The reactor meltdown in Japan is a good example of the difficulty in predicting future generation selections. Just within the last month there has been a wide variation of predictions relative to the availability and, more importantly, price of shale gas in Poland and China.

The influence of future environmental regulations will continually need to be assessed and changes to the forecasts adjusted accordingly. There are ways that the utility industry can change public perceptions and the confrontational relationships with the environmental community and, thus, change the regulatory impact. A recommended approach will be briefly explained.

This 90-minute webinar is free of charge to subscribers to McIlvaine market reports, the Utility Environmental Upgrade Tracking System and Power Plant Air Quality Decisions. The cost for non-subscribers is $400. To register for this event, click here:

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

DATE	Non-Subscribers Cost	SUBJECT	Webinar Type
July 19, 2012	$400.00	Future for Coal, Gas, Nuclear and Renewables (forecasts by region and discussion of market drivers and regulatory constraints)	Market Intelligence
July 26, 2012	$125.00	Beneficial Byproducts of Coal Combustion and Gasification	Power
August 2, 2012	$125.00	Mercury Control and Removal Status and Cost	Power
August 9, 2012	$400.00	Filter Media (forecasts and market drivers for media used in air, gas, liquid, fluid applications both mobile and stationary)	Market Intelligence
August 16, 2012	$125.00	Report from Coal-gen (highlights of speeches and exhibitions)	Power
August 23, 2012	$125.00	Report from Mega Symposium (highlights of speeches and exhibitions at this important air pollution conference)	Power
August 30, 2012	$400.00	Instrumentation for Air, Gas, Water, Liquids (forecasts , market shares, growth segments)	Market Intelligence
September 6, 2012	$125.00	Production of Fertilizer and Sulfuric Acid at Coal-fired Power Plants	Power

§ Court blocks EPA Regional Haze Rule for Oklahoma Coal-fired Power Plants

§ Aboitiz Power signs $546 Million Deal for construction of Coal-fired Power Project

§ NJ Company to acquire Salem Power Plant - will build New Gas-fired Power Station

§ Siemens to build 585 MW Combined Cycle Gas-fired Power Plant in Germany

§ Israel Chemicals to build $320 Million Gas-fired Power Plant

§ ABB gets US$120 Million Power Project in Iraq

§ BHEL completes 250 MW Advanced Class Gas Turbine Setup at Pragati-III, Delhi, India

§ Gas-fired Erbil Power Plant to boost output 500 MW with GE Technology

§ New York Adopts CO₂ Emission Limit for Power Plants - Lower than Proposed Federal Standard

§ Congressional Report Finds US Funding for CCS has been Ineffective; Recommends Other Policy Options

§ Australia’s Controversial $24/ton Carbon Tax Goes into Effect

§ Australian Carbon Tax Prompts Closure of Munmorah Coal Power Station, Site of Carbon Capture Pilot

§ Westinghouse submits Bid to CEZ for AP1000 Power Plant to complete Temelin Nuclear Units 3 and 4

§ E.ON ends Waste-to-Energy Business Sale Following Low Bids

§ “New Developments in Power Plant Air Pollution Control” - Hot Topic on July 12 - Free of Charge

Thousands of air pollution projects will be initiated this year at the 7,000 coal-fired boilers which are generating electricity around the world. The total order value will be $21.9 billion as displayed in the McIlvaine Utility Environmental Tracking System. (www.mcilvainecompany.com)

Equipment Type	Installation Date	Value ($ Billions)	Average Value ($ Millions)	Number of Projects
New Precipitators	2014	4.9	40	122
Precipitator Upgrades	2013	1.4	20	70
Fabric Filters	2014	0.9	40	22
Bags	2012	0.2	0.4	500
FGD Upgrades	2014	1.2	20	60
New FGD	2015	7.8	60	130
SCR Systems	2014	4.0	40	100
Catalyst	2012	1.5	2	750
Total		21.9

These are large orders ranging up to more than $100 million in some cases. There are large differences in lead time, so flue gas desulfurization (FGD) orders let in 2012 will not be installed until 2015. Since the McIlvaine system tracks the startup date, the date of placement of the purchase order can be calculated. In fact, the actual P.O. date is often not precise. Utilities place “letters of intent” or commitments for just the preliminary engineering and later place orders for the balance of the project.

Many FGD systems have reached old age. The corrosive atmosphere ensures that the life of components is shortened to less than twenty years. Substantial upgrades are being undertaken in Europe and the U.S. Most of the new FGD projects are in Asia.

In the U.S., architect engineers such as Sargent & Lundy, Bechtel and Black & Veatch are preparing specifications and assisting the end user make selections. Elsewhere in the world, the end users are more likely to deal directly with the systems suppliers such as Alstom, Doosan, Hitachi, Babcock & Wilcox and Siemens.

The number of electrostatic precipitator projects greatly exceeds those employing fabric filters. This makes the power industry unique. Cement, incineration and steel plants have all shown preferences for fabric filters.

There are a number of NO_x control projects in the bidding stage. Most of the power projects involve selective catalytic reduction (SCR) instead of selective non-catalytic reduction (SNCR). The projects in Asia mostly involve new power plants. The projects in the U.S. and Europe are mostly retrofit projects to meet changing regulations.

McIlvaine’s Renewal Energy Projects and Update tracks the incentive programs introduced by utilities.

A new survey by the Solar Electric Power Association (SEPA) ranks Pacific Gas and Electric Company (PG&E) as the nation’s top electric utility in the amount of solar power added to its system in 2011. PG&E is the first in the Annual Solar Megawatts category of the more than 240 utilities that participated in SEPA’s 2011 Utility Solar Rankings survey.

“PG&E is pleased to support our customers’ choice to go solar so they can realize the benefits of solar energy for their homes and businesses,” said Helen Burt, Senior Vice President of Customer Care for PG&E. “We remain committed to providing our customers with clean, reliable, and affordable energy, including an increasing amount of power from large utility-driven solar projects.

PG&E helped more than 12,000 customers in Northern and Central California connect 162 MW of solar at their homes and businesses in 2011, bringing the total number of customer solar installations to more than 63,000. It also connected 135 MW of new large solar projects for the benefit of all customers. This includes PG&E’s own expanding solar facilities, which when completed will deliver 250 MW of clean energy — enough to power about 150,000 average customer homes.

Public Service Electric & Gas (PSE&G) had the second most solar capacity of any American utility added to its electric system last year, according to Solar Electric Power Association (SEPA). The designation came from SEPA’s 2011 Utility Solar Rankings report released in April, which included more than 240 utilities. In addition, PSE&G ranked ninth in the amount of solar capacity installed last year per customer,

During 2011, 181 solar megawatts were added in PSE&G’s service territory, a 142 percent increase from 2010. That total includes customer systems and solar projects that PSE&G developed. PSE&G’s Solar 4 All™ and Solar Loan programs either installed or helped finance more than 20 percent of the 181-MW total. PSE&G has placed in the top five in SEPA’s annual survey for four consecutive years.

FirstEnergy Corp. announced that its Ohio utilities — Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison — have met the 2012 benchmarks for in-state solar renewable energy that were established under Ohio’s energy law. The benchmarks were met through a successful Request for Proposal (RFP) to secure 10-year Solar Renewable Energy Credits (SRECs).

In Ohio, FirstEnergy supports the development of solar energy resources by purchasing SRECs, which represent the environmental attributes of solar renewable electricity generation. For every megawatt hour of solar renewable electricity generated, an equivalent amount of SRECs are produced.

The RFP sought and procured the delivery of 1,000 SRECs produced by generating facilities throughout Ohio for each calendar year beginning in 2012 and continuing through 2021. There were 38 qualified bids received offering over 15 times the required SRECs being sought under the RFP.

Florida Power & Light Company (FPC) announced that beginning at 8:30 a.m. on Thursday, May 3, customers interested in installing a solar-powered photovoltaic (PV) system can apply for 2012 incentive funding.

As part of an ongoing pilot program approved by the Florida Public Service Commission (PSC) to help reduce energy consumption and peak demand, FPL will offer PV solar rebates on a first-come, first-served basis for residential and business customers.

FPL suggests that customers who are interested in applying for the solar rebate to prepare in advance of May 3 and have all the necessary components of the application ready. Funds are expected to run out quickly, so interested customers should plan to apply for rebates as soon as the application period opens.

§ Court blocks EPA Regional Haze Rule for Oklahoma Coal-fired Power Plants

§ Israel Chemicals to build $320 Million Gas-fired Power Plant

§ ABB gets US$120 Million Power Project in Iraq

§ Gas-fired Erbil Power Plant to boost output 500 MW with GE Technology

§ Australia’s Controversial $24/ton Carbon Tax Goes into Effect

§ Australian Carbon Tax Prompts Closure of Munmorah Coal Power Station, Site of Carbon Capture Pilot

§ E.ON ends Waste-to-Energy Business Sale Following Low Bids