Power Air Quality Insights No

Power Air Quality Insights
No. 109 May 30, 2013

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The coal-fired capacity utilizing SCR for NO_x control will nearly double in the period 2012 to 2017. This is the prediction of the McIlvaine Company in its continually updated, NO_x Control World Markets. (www.mcilvainecompany.com)

World Region	2012	2017
Total	423,830	808,416
Africa	0	0
CIS	0	0
East Asia	186,326	486,904
Eastern Europe	0	19,090
Middle East	0	3,300
NAFTA	173,184	210,805
South & Central America	0	0
West Asia	0	0
Western Europe	64,320	88,317

Total capacity will grow by almost 385,000 MW during the five-year period. East Asia will account for 78 percent of the growth. Growth in coal-fired SCR will be modest in NAFTA, but there will be a big SCR market for gas turbines. The SCR market for gas turbines, refineries and other applications will be growing in Central and South America.

These numbers do not reflect replacements. In Western Europe, a number of SCR systems will be replaced due to age and the increasing stringency of regulations. China will be the largest purchaser of SCR systems over the next five years. New power plants will be fitted with SCR systems while existing power plants in polluted city areas will be retrofitted with this technology.

The forecast does not include retrofitting the remaining 100,000 MW of U.S coal-fired power plants with SCR. The assumption is that they will rely on low NO_x burners or SCR. Alternatively, these power plants may be retired. However, it may be necessary to revise this forecast in the next few months. The price of gas has risen. As a result, more coal is being burned. Power plants are beginning to rethink their coal-fired power plant retirement strategies.

The top 200 companies enjoy more than 50 percent of the global industrial pump business. Another 5,000 companies average less than $4 million in sales each. According to the McIlvaine Company in Pumps: World Markets the concentration of the industry has again accelerated. There have been a number of recent acquisitions and geographic expansions.

GE, the nineteenth largest pump company, will move several rungs up the ladder as it acquires Lufkin Industries, Inc., a leading provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears, for approximately $3.3 billion. Artificial lift, used in 94 percent of the roughly one million oil-producing wells around the world, helps lift hydrocarbons to the surface in reservoirs with low pressure and improves the efficiency of naturally flowing wells. Lufkin will broaden GE oil and gas artificial lift capabilities beyond electric submersible pumps (ESPs) to include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and a sophisticated array of well automation and production optimization controls and software. The ESP category of artificial lift is the only lift segment in which Lufkin does not currently compete.

The world’s fifth largest pump company, Weir, has acquired the R Wales group of companies (“R Wales”), a Canadian based manufacturer of specialist rubber and wear resistant linings for the mining, minerals processing and oil sands industries. The acquisition, which was completed on February 15, 2013, with Canadian facilities in British Columbia and Ontario and a U.S. facility in Arizona, R Wales designs and manufactures rubber lining for pipes, tanks, chutes and hoses and specializes in custom rubber and urethane moulded products, including slurry pump wear parts and mill liners. In 2012, the Wales Group generated revenues in excess of C$30m. The acquisition extends Weir’s aftermarket position in the production and servicing of a wide range of rubber lined wear components for the North American oil sands and mining sectors and complements the existing customer base and product portfolio.

Weir has also advanced its global foundry supply chain strategy, completing the acquisition of the business and assets of the Cheong Foundry in Malaysia on February 6, 2013. Based near Kuala Lumpur, the facility supplies castings to a number of industries, including mining and power. The acquisition enables Weir to add foundry capacity to serve the Asia-Pacific region with high quality products from a best cost sourcing region. In addition, agreement has been reached to acquire the plant, equipment and buildings of Xmeco Foundry Pty. Ltd, a specialist large casting foundry in Port Elizabeth, South Africa. Xmeco expands Weir’s capacity and capability on the African continent, enabling the full product range to be locally produced.

The third largest pump company, Grundfos, will expand its Indian production capacity by setting up an additional unit. As part of the expansion plans, with an initiative of making India as the second home, the company plans to invest Rs. 230 crores in the next five years. Grundfos India has been growing at 30-35 percent since its inception in 1998. With the turnover of Rs. 318 crores in 2012, Grundfos is looking at Rs. 1000 crores turnover in the next five years.

Number twenty-two in the rankings, Pentair, is planning to invest $50 million in expanding its operations in the UAE. Pentair wants to increase its $400 million current turnover in the UAE to $1 billion. In particular, the company is looking to invest in a new pump manufacturing facility in the region.

Number twenty-eight in world ranking, Gorman-Rupp Africa, has purchased the business of Pumptron with cash generated from operations. Pumptron has been an international value-added distributor for Gorman-Rupp for over twenty-five years and will further enhance the company’s continuing international expansion. Founded in 1986, Pumptron is a provider of water-related pumping solutions primarily serving the construction, mining, agricultural and municipal markets in South Africa and, increasingly, throughout other sub-Sahara African countries. Pumptron is headquartered in Johannesburg with operating locations in Cape Town and Durban and had approximately $10 million in revenue during its fiscal year 2012, which includes sales of Gorman-Rupp products.

The Gorman-Rupp subsidiary, National Pump Company, purchased American Turbine Pump Companies (“ATP”). Founded in 1975, ATP is a group of companies that collectively are a leading manufacturer and distributor of energy-efficient vertical turbine and submersible pumps primarily serving agricultural, municipal and industrial markets both domestically and globally. During 2011, ATP had approximately $15 million in revenue from sales of its products through its Lubbock, Texas headquarters and two other locations in Houston, Texas and Fresno, California.

ITT Corporation has dropped from the top of the leader board when it divested its Xylem companies. But it is growing again. It has signed an agreement to acquire Joh. Heinr Bornemann GmbH. Bornemann Pumps is a global provider of highly engineered pumps and systems for the oil and gas industry. Headquartered in Germany, Bornemann Pumps has a strong international installed base of multiphase pumping systems for the oil and gas market. The company also serves the industrial, food and pharmaceutical sectors. Founded in 1853, Bornemann has a solid record of growth with estimated fiscal 2012 revenue of €115 million and employs more than 550 employees globally.

Taco, Inc., of Cranston, RI, has purchased Hydroflo Pumps of Fairview, Tenn. Taco recently dedicated a $20-million addition to its headquarters in Cranston. The company, which has sales of $200 million a year, employs about 500 people, the vast majority at the facility in Cranston, with other workers in Fall River, Mass. and Ontario, Canada. It makes valves, pumps, tanks and electronics for heating and cooling. Hydroflo is a manufacturer of vertical and submersible turbine driven pumps. Hydroflo also operations in Culver, Ind., Marion, Ark., Grand Island, Neb, Brownfield, Texas and Fresno, Calif.

CRI Pumps, a Coimbatore, India-based manufacturer and exporter of pumps, recently signed a business transfer agreement with Pumps & Process Systems of the U.K. Chief Executive Officer of CRI Chaitanya Koranne said that CRI would shift the industrial pumping solutions manufacturing facility of Pumps & Process Systems in the U.K. to Coimbatore soon. CRI Pumps’ annual turnover in 2011-2012 was Rs. 850 crore ($160 million), which was expected to increase to Rs. 1,000 crore this year. Nearly 20 percent of the turnover last year was from exports, and it was expected to go up substantially with the acquisition of the U.K. company. Pumps and Process Systems had a strong presence in sectors such as mining and CRI would be able to tap the opportunities in these areas.

Xylem, the current # l pump supplier has acquired privately held Heartland Pump Rental & Sales, Inc. for approximately $29 million. Heartland Pump, headquartered in Carterville, Illinois, has been a strong business partner with Godwin in dewatering pump rental, services and systems design since 1995. Godwin is part of the Xylem portfolio. Heartland Pump employs approximately one hundred people with branches in Evansville, Indiana; Horn Lake, Mississippi; and Nashville, Tennessee.

The Liebherr Group has acquired concrete pump manufacturer Waitzinger, which is based in Neu-Ulm, Germany. Waitzinger Baumaschinen was founded in 1991 and employs a staff of nearly sixty. It specializes in the development and production of truck-mounted concrete pumps, trailer concrete pumps and truck mixer concrete pumps. These products will now also be distributed via Liebherr's international sales and service organization.

There is likely to be a continuation of globalization and consolidation of the international pump industry in the coming years.

Northern Power Systems Turbines Weather the Challenge of Hurricane Speed Winds

With turbines operating in extreme wind regimes such as the Caribbean and northern Scotland, Northern Power Systems announced that its fleet of gearless turbines that experience hurricane-speed winds has achieved 1 million run time hours, all without incident. That is equivalent to a cumulative 114 years of continuous, safe, high-performance operation.

As a testament to the design and engineering behind Northern Power turbines, all 74 units in the path of Hurricane Sandy when it blasted through in November 2012 were undamaged by the high winds. Once conditions returned to normal, each turbine started generating electricity again.

SolarCity, Forest City Team to Install Solar on up to 6.500 Homes in Project at Navy, Marine Corps Bases in Hawai’i

Construction has started on the first phase of a massive solar project by Forest City Military Communities and SolarCity® to provide solar electricity to 6,500 military family residences at Ohana Military Communities (OMC), which serves Navy Region Hawaii and Marine Corps Base Hawaii. The latest SolarStrong™ project is scoped for a planned 24 megawatts (MW) of generation capacity, which would make it the largest SolarCity has undertaken to date. SolarCity and Forest City have finished installing the first 700 kilowatts of solar capacity at Marine Corps Base Hawaii, and will soon initiate the first installations on Navy Region Hawaii.

Primarily financed by Bank of America Merrill Lynch, the new project at Marine Corps Base Hawaii and Navy Region Hawaii is expected to reduce Hawaii’s dependence on the imported oil it uses to produce the majority of its electricity.

Petroleum Development Oman and GlassPoint Commission the Middle East’s First Solar EOR Project

Petroleum Development Oman (PDO), the largest producer of oil and gas in Oman, and GlassPoint Solar, the global leader in solar enhanced oil recovery, announced the successful commissioning of the Middle East’s first solar enhanced oil recovery (EOR) project. By harnessing the sun’s energy with GlassPoint’s Enclosed Trough technology, the solar EOR project produces a daily average of 50 tons of emissions-free steam that feeds directly into existing thermal EOR operations at PDO’s Amal West field in Southern Oman. The 7 MW system is in regular operation and recently passed its first performance acceptance test since coming online, exceeding contracted steam output by 10 percent

GlassPoint’s unique Enclosed Trough design encloses parabolic mirrors inside a glasshouse structure, protecting the solar collectors from harsh conditions of high wind, dust, dirt, sand and humidity common to Middle East oilfields. The glasshouse enclosure enables the use of ultra-light, low-cost reflective materials and proven automated washing equipment, further reducing costs. GlassPoint steam generators are designed to use the same low-quality boiler water as once-through steam generators, the industry’s current standard, eliminating the need for costly water pretreatment.

The Kroger Co. has unveiled a clean energy production system that will convert food that can't be sold or donated into clean energy to help power its Ralphs/Food 4 Less Compton distribution center.

The anaerobic conversion system will process more than 55,000 tons of organic food waste into renewable energy annually and provide power for the over 650,000 square foot distribution center. By diverting that food waste —the equivalent of 150 tons per day — the system will also reduce area truck trips by more than 500,000 miles each year.

The Kroger Recovery System utilizes anaerobic digestion, to transform unsold organics and onsite food-processing effluent into renewable biogas. This biogas is then turned into power for onsite operations. The process is carried out in an enclosed, oxygen-free environment, which means the process takes up less space and generates no odors. The system will provide enough renewable biogas to offset more than 20 percent of the energy demand of the Ralphs/Food 4 Less distribution center.

Alterra Power and EDC Complete Joint Venture Agreement for Geothermal Assets in Chile and Peru

Alterra Power Corp. announced the completion of a joint venture agreement with Energy Development Corporation (EDC) for the development of Alterra's Mariposa geothermal project in Chile plus three geothermal concessions held by Alterra in Peru. The agreement calls for EDC to earn a 70 percent interest by funding 100 percent of the next $58.3 million in project expenditures at Mariposa, and $8 million in project expenditures on the Peruvian concessions. Advancement of individual projects will occur under separate shareholder agreements which will follow the commercial terms of the joint venture agreement. Such agreements are expected to be executed later in 2013 subject to final documentation and project evaluation by EDC.

§ GE Competing with Ecolab, Flowserve, Xylem and Pentair for Top Spot in Fluid Treatment Market

“Power Generation in Europe” is the Hot Topic for Thursday, June 6, 2013

At 10 a.m. on Thursday, June 6, the Power-Gen Europe show will have ended and, since it will be 5 p.m. in Vienna, most participants will be traveling home. Last year we conducted a webinar from Cologne. This year we will be coordinating activities from our offices. Bob McIlvaine will be reporting and will invite contributions from speakers and exhibitors.

There will only be four presentations on air pollution control at the conference. One will be on SNCR for coal-fired power plants. Another will be on SCR and a third on fluid bed scrubbers. One presentation will cover FGD design for coal-fired boilers. There will be a water treatment paper by Nalco.

There are more than 20 exhibitors with an air pollution focus, so we will be reviewing some of their products. There will be a few water treatment exhibitors. Ovivo, who was a presenter last week in our hot topic hour, will be displaying its water intake products.

Much of the focus will be on the future of coal in Europe. There has been a real turnaround recently as the cost of coal-fired power has proven to be considerably less than gas. A number of the conference papers are devoted to carbon capture. On the other hand, there is little evidence that many commercial power plants will be built in the foreseeable future. So what is the outlook?

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.

	2013
Date	Subject
June 6	Report from Power-Gen Europe (update on regulations, speaker and exhibitor highlights)	Power
June 13	Monitoring and Optimizing Fuel Feed, Metering and Combustion in Boilers	Power
June 20	Dry Sorbent Injection and Material Handling for APC	Power
June 27	Power Generation Forecast for Nuclear, Fossil and Renewables	Market Intelligence
July 11	New Developments in Power Plant Air Pollution Control	Power
July 18	Measurement and Control of HCl	Power
July 25	GHG Compliance Strategies, Reduction Technologies and Measurement	Power
August 1	Update on Coal Ash and CCP Issues and Standards	Power
August 8	Improving Power Plant Efficiency and Power Generation	Power
August 15	Control and Treatment Technology for FGD Wastewater	Power
August 22	Status of Carbon Capture and Storage Programs and Technology	Power
August 29	Pumps for Power Plant Cooling Water and Water Treatment Applications	Power
Sept. 5	Fabric Selection for Particulate Control	Power
Sept. 19	Air Pollution Control for Gas Turbines	Power
Sept. 26	Multi-Pollutant Control Technology	Power