Power Air Quality Insights No

Power Air Quality Insights
No. 82 November 15, 2012

WELCOME

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· Utilities Will Finish 968 Air Pollution Projects Next Year at a Cost of $25 Billion

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.

	2012
DATE	SUBJECT
November 29	Catalyst Selection for NO_x and Other Gases	Power
December 6	Boiler Feed and Cooling Water Treatment	Power
December 13	Co-firing Sewage Sludge, Biomass and Municipal Waste	Power
	2013
January 10	Update on Oxy-fuel Combustion	Power
January 17	Production of Fertilizer and Sulfuric Acid at Coal-fired Power Plants	Power
January 24	Gypsum Dewatering	Power
January 31	Filter media (forecasts and market drivers for media used in air, gas, liquid, fluid applications, both mobile and stationary).	Market Intelligence
February 7	Valves for Power Plants, Boilers and Water Treatment Facilities	Power

§ Dominion asks Approval of 1,358 WM Brunswick Combined Cycle Power Plant

§ Alstom will supply a GT13 Gas Turbine for a New Power Plant in Jordan

§ JICA can issue US $250 Million to expand Capacities of Navoi Power Station in Uzbekistan

§ Metso plans Biomass Power Plants in China and India

§ ADA-ES to supply ACI and DSI Systems to Fleet of Coal-fired Power Plants

§ Karachi Electric Supply plans $400 Million Investment in Power Generation

§ Power Will Account for 45 Percent of the Air Pollution Control Market Next Year

§ Hot Topic Hour on November 15 at 10 a.m. (CST) is “Dampers and Expansion Joints for
Coal-fired and Gas Turbine Power Plants”

Utilities Will Finish 968 Air Pollution Projects Next Year at a Cost of $25 Billion

Power plants around the world are presently completing 968 air pollution control projects. When completed in 2013, the total investment will be in excess of $25 billion. These 968 projects are identified in two McIlvaine publications: Utility Environmental Upgrade Tracking System and Chinese Utility Plans.

Power Plant Air Pollution Projects to be Completed in 2013 (# of Projects)
Equipment Type	Americas	Europe/Africa	Asia	Total
Particulate	140	100	300	540
FGD	45	30	150	225
SCR	40	23	70	133
Toxics	70	0	0	70
Total	295	153	520	968

Asia will complete more projects next year than the rest of the world combined. Asian particulate projects include many new coal-fired boilers and some retrofits. In the rest of the world, the upgrades and replacements are the main markets. However, China is also undertaking a major FGD upgrade program. The U.S. is the only country with toxic regulations. Next year there will be a number of projects completed which address mercury and hydrogen chloride reduction.

Revenues for Power Plant Air Pollution Projects to be Completed in 2013
Equipment Type	Revenues $ Billons	Revenue Per Project $ Millions	# of Projects
FGD	9.0	40	225
SCR	4.0	30	133
Precipitator	10.0	20	500
Fabric Filter	0.8	20	40
Mercury and Other Toxics	1.4	20	70
Total	25.2		968

The projects range from $5 million to $150 million and average between $20 million and $40 million depending on the pollution control type included. The totals do not include installation of new catalyst, bags, or precipitator internals such as electrodes and rappers.

Suppliers of scrubbers, absorbers, adsorbers and biofilters can anticipate a $6.6 billion market next year. The largest purchasing segment will be waste-to-energy plants. This is the conclusion reached in the latest revisions to Scrubber/Adsorber/Biofilter World Markets published by the McIlvaine Company. www.mcilvainecompany.com

Industry	2013
Chemical	757
Electronics	163
Food	199
Incinerators	1,477
Metals	801
Other Industries	920
Pulp & Paper	308
Surface Coating	690
Wastewater	1,286
Total	6,601

The forecasts exclude purchases by coal-fired power plants. The reason is that this one application generates revenues equal to all the others and is, therefore, treated separately. Another reason is that the participants in the coal-fired power plant segment are mostly both suppliers of complete generation systems as well as scrubbers.

The industrial scrubber market is served by thousands of small companies. Some concentrate on just one type of equipment e.g. biofilters or dry scrubbers. Others are focused on specific industries. DuPont, for example, is focused on the refining and waste-to-energy markets. A number of companies focus on odor control for wastewater treatment and food plants.

There are some promising new markets. One is for vessels which are burning low quality fuels. They will have to install scrubbers or switch to cleaner fuels. The fuel cost differential is sufficient to justify more than $1 billion needed to install the SO₂ capture systems.

The developing countries are the largest customers for scrubbers and absorbers. One reason is the expansion of industry. Steel, chemical, mining and other heavy industries need scrubbers for furnaces, kilns and material processing. Another reason is that scrubbers are also used for particulate capture in developing countries. Fabric filters have captured most of the particulate applications in the developed countries. The cost is higher, but so is the efficiency. So, a steel furnace in a developing country is likely to utilize a venturi scrubber, whereas a similar furnace in a developed country would use a fabric filter.

Geothermal power plants provide steady base load power. Unfortunately conditions for their development only exist in certain parts of the world. McIlvaine tracks these projects in Renewable Energy Projects and Update.

MHI Receives Full Turnkey Order from CFE, Mexico for 50 MW Geothermal Power Generation Plant

Mitsubishi Heavy Industries, Ltd. (MHI), jointly with Mitsubishi Corporation, has received a full turnkey order from Comision Federal de Electricidad (CFE) of Mexico to build a 50 MW (megawatt) geothermal power generation plant at its Los Azufres III power station. The power plant, which is slated for completion in December 2014, represents the 12th geothermal power plant to be supplied by MHI to Mexico.

The Los Azufres III power station is to be located in Michoacan, approximately 250 kilometers west of Mexico City, the capital. In this plant construction project, MHI will be responsible for engineering, manufacture, procurement and installation of major components, including the steam turbine, and balance of plant (BOP), as well as civil engineering work. The generator will be supplied by Mitsubishi Electric Corporation.

Mexico ranks fifth in the world in terms of geothermal resources, and MHI has delivered five geothermal power plants to the Los Azufres power station and six units to the Cerro Prieto power station. Together with these existing plants, the new geothermal power plant will provide electricity to meet strong demand in Mexico, where steady economic growth is projected in the coming years.

EGS Energy has been working in recent months with the Spanish shallow geothermal company Bleninser SA who had just announced their 50 percent JV investment in Ciclo Binario SA for the development of a deep geothermal energy powered binary cycle plant.

The Ciclo Binario development will involve the investment of €30 million in a plant of 10 MW_e generating electricity for several thousand homes. The plant will be located in the hills near Guadix in the northern part of the province of Granada. A test well has been drilled to 600 meters and conductivity tests carried out, yielding satisfactory results. The production and re-injection wells are planned to be of the order of 3,500 meters deep. The development will take place over the coming three years and the operating lifetime is estimated to be 30 years.

The completely refurbished Rancia 2 geothermal plant in Tuscany, in the municipality of Radicondoli in the province of Siena, Italy, has entered service.

The plant, which has an installed capacity of 17 MW, will be able to generate about 150 million kilowatt hours of power, thus avoiding the emission of 100 thousand tons of CO₂ and saving 33 thousand TOE (tons of oil equivalent) of fossil fuels per year.

The work on the Rancia 2 plant will also include the construction of an AMIS facility, a patented Enel Group process to improve the environmental performance of the plant. The refurbishment project was developed by the in-house engineering resources of EGP, with construction being carried out using primarily local labor and firms.

The renovation of the Rancia 2 plant is part of EGP industrial plan for 2012-2016 which involves a package of some €500 million in EGP investment for geothermal plants development in Tuscany.

Work is currently in progress on the Rancia 1 and Le Prata plants, located respectively in the towns of Radicondoli (Siena) and Castelnuovo VC (Pisa), while the three Amiata-area geothermal plants, all located in the town of Piancastagnaio (Siena), are scheduled to enter service shortly, completely refurbished.

Ormat Technologies, Inc. announced that its wholly owned subsidiary, Ormat Nevada Inc., concluded and signed a $61.4 million engineering, procurement and construction (EPC) contract with Enel Green Power North America. Under the EPC contract, Ormat will provide two air-cooled Ormat Energy Converters at Enel’s Cove Fort geothermal power plant project in southern Utah.

As previously announced on April 25, 2012, the parties have entered into an interim agreement in the amount of approximately $9 million to ensure timely completion of the project. Now that the full EPC contract has been executed, Ormat’s product backlog announced May 8, 2012 increased by an additional $52 million to a total of approximately $260 million, most of which is expected to be recognized as revenues through 2013.

Landsvirkjun announced that it has signed a new power purchase agreement (PPA) with PCC BakkiSilicon hf, an Icelandic subsidiary of the Germany-based industry holding PCC SE. Under this new contract, Landsvirkjun will provide clean, renewable energy to power a metallurgical grade silicon metal production plant being built by PCC in Bakki near Husavik on Iceland's north coast. The 32,000 ton facility is scheduled to come online in late 2015 and will require 52 megawatts (MW) of power, or 456 gigawatt-hours (GWh) annually, which will be derived from renewable sources such as geothermal and hydro.

Landsvirkjun and GMR Endurvinnslan ehf (Geothermal Metal Recycling – GMR) announced that the companies have agreed on terms for a new power purchase agreement (PPA). Under this new contract, Landsvirkjun will provide clean, renewable energy to power a steel and scrap metal recycling plant at the Grundartangi industrial area on Iceland's southwest coast. The power purchase agreement commits Landsvirkjun to provide GMR with up to 10 MW of power for a seven year period. In addition to recycling for export, the steel will be partially sourced and resold to and from Iceland´s substantial aluminum smelting industry, which accounts for about 2 percent of the world´s primary aluminum output. The recycling plant is currently under construction and is scheduled to begin operations in early 2013. The initial production output is expected to start at approximately 30,000 tons per year with the capacity to scale up to 100,000 tons per year.

Landsvirkjun, one of Europe's leading renewable energy companies, generates 75 percent of all electricity in Iceland and is the country's biggest electric generator. By signing this PPA, Landsvirkjun continues to reaffirm the competitive business environment in Iceland.

GeoGlobal Energy Chile Limitada (GGE Chile), a wholly-owned affiliate of U.S.-based GeoGlobal Energy LLC (GGE), announced the successful completion of the exploratory drilling program on the northwestern flank of the Tolhuaca Mountain in southern Chile. One of the wells, Tolhuaca No. 4, is the most productive geothermal well ever drilled in South America.

A long-term flow test lasting more than 45 days has demonstrated that the production and injection wells are capable of supporting commercial power production, company officials said. GGE has been actively exploring at Tolhuaca for more than three years, and is continuing project development of the site — including design, permits and construction of the power plants and transmission lines — with a goal of power operations as early as 2014. Currently there are no operating geothermal power plants in South America.

GGE Chile acquired access to the site in January 2009 and drilled a successful exploration well in March 2009 that represented the first high-quality geothermal resource discovery in the country since the late 1960s. Development of Chile's geothermal energy reserves is a stated priority of the government.

The production well, Tol-4, was drilled to a depth of 2,300 meters and is producing high temperature steam sufficient to generate 12 MW of electrical energy, enough to supply the power needs for 45,000 households. It is the most productive geothermal well ever drilled in Chile or in any other country in South America. The injection well, Tol-3, drilled deeper at 2,575 meters, is capable of safely accepting all of the geothermal fluids from the power operations with the highest level of environmental protection.

§ Alstom will supply a GT13 Gas Turbine for a New Power Plant in Jordan

§ Metso plans Biomass Power Plants in China and India