Power Air Quality Insights No

Power Air Quality Insights
No. 128 October 10, 2013

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.

· Purchases of NO_x Control Systems and Catalyst to Exceed $12 Billion This Year

· “Chinese Air Pollution Control Developments and Opportunities” is “Hot Topic Hour” on October 17, 2013

McIlvaine is introducing a new concept combining total knowledge for end users with market forecasts and customer access for suppliers. The main differences between the new approach and the services on Power Plant Air Quality are (1) the narrow focus and (2) the fact that the services are free of charge to the end user.

The first services are MACT decisions for Industrial Boilers and Gas Turbine Air Treatment. Here are the details on the gas turbine offering:

Market research should not be independent of the purpose for which it is funded. It should be the traffic control for vehicles on the knowledge bridge to the purchaser. McIlvaine provides both the traffic control and the vehicles in the Gas Turbine Air Treatment Market and Knowledge Bridge.

The concept of integration of market research as the traffic control for the various sales vehicles is explained at:

McIlvaine is not only creating vehicles but is creating the bridge itself in Power Plant Air Quality Decisions. It is now duplicating this format (except that it will be free to turbine operators) in the Gas Turbine Air Treatment Global Decisions Positioning System (GDPS).

This system empowers the purchaser to select the best air treatment components for his application. This whole concept is explained at:

The Gas Turbine Air Treatment Market and Knowledge Bridge integrates in a superior way for the supplier to fine tune his strategy and then execute it.

The system addresses the initial capital purchase and the operating and maintenance opportunities.

Gas Turbine Air Treatment Products and Services
Capital	Operating and Maintenance
Intake Housing
Weather Protection
Conditioning	Nozzles
Pre-filtration	Filters
Coalescers	Coalescers
Final Filtration	Filters
Tempering Air System (Single Cycle)	Dampers, Drives, Fan Parts and Seals
Duct Burner (Combined Cycle)	Burner Parts
Ammonia Injection Grid	Nozzles, Ammonia and Pump Parts
CO Reactor	Catalyst
SCR	Catalyst
Process Controls	Sensors, Valves, Seals and Gaskets
CEM	Rata Testing, Protocol Gases and Instruments
Silencer	Silencer Parts
Stack

It covers materials and coatings as well as valves, pumps and other system sub-components.

Gas Turbine Air Treatment Global Decisions Positioning System^™ (GDPS). The GDPS is a very effective knowledge bridge to the purchaser. Since operators can have access to this system free of charge and since it saves time and results in better decisions, it is going to be utilized to its fullest. If the supplier can make the case for providing the best product, it will be very effective. He can make this case by using all the vehicles which travel on the 4 lanes of the bridge. Some of these vehicles are provided in the basic subscription. Others can be added.

Gas Turbine Air Treatment needs to be viewed as an Integrated System by the purchaser of the components. This requires navigating a number of different decision trees. McIlvaine is making this task easier with the Gas Turbine Air Treatment Global Decisions Positioning System™ (GDPS). This service is provided free of charge to operators of turbines. Access to the system is also part of this Gas Turbine Air Treatment Markets and Knowledge Bridge

Two recent developments in gas turbine air treatment are the expanded use of HEPA filters for gas turbine intake air and SCR with both CO and NO_x catalyst for the tail-end gas. Some dust that the inlet filter does not remove is going to deposit on the catalyst. A facility can use a very small catalyst pitch and save lots of money, but the increase in pressure loss along with deposition will increase operating cost and decrease electricity output. Therefore, the choice of inlet filter needs to be viewed initially in terms of catalyst pitch selection and then in terms of catalyst life.

First in California and now in other places, the stack gas emission limits are lower than the ambient air particulate matter concentration. In these cases, the inlet air filter becomes a key element in stack gas compliance. Gas turbine inlet ambient air undergoes a series of treatments. The initial treatment is to remove large weather-related contaminants e.g., snow, rain, etc. The humidity and temperature of the ambient air are also adjusted to increase the weight and, therefore, electrical output. This treatment can range from fogging nozzles to a full air conditioning system. Droplets are formed, coalesced and removed. Particulate filtration can be with a series of filters ranging from coarse to HEPA or it can take place with self-cleaning cartridges.

One alternative for NO_xcontrol during combustion is the low NO_x burner. Another alternate is water injection. Once the air has been mixed with the gas and combusted, it passes through other systems in the gas path. In a combined cycle process there is likely to be a duct burner to adjust HRSG steam temperature. This can add to the pollutants. CO and NO_x catalysts are also utilized. However, the accompanying ammonia injection can create ammonia slip which is regulated and also tends to foul the catalyst.

With single cycle systems many of the air treatment challenges are greater. If a low temperature catalyst is used, tempering air is needed. This creates a challenge in providing laminar flow to the catalyst. If a high temperature catalyst is used, higher catalyst costs are encountered and higher maintenance is possible.

The air treatment needs are not static. The higher performance turbines are more likely to be compromised by small particles. The use of gas turbines and certainly the use of SCR are expanding to applications that are more challenging. The seawater and salts found in marine applications including floating production, storage and offloading (FPSO) units are examples.

Application in refineries in South America where inlet air quality may be low and fuel includes less than pristine liquids is another example. The rapid cycling of turbines complementing wind and solar is another newer challenge.

The changes and increasing complexity relative to gas turbine air treatment have demonstrated the need for a system to aid decision makers. McIlvaine is addressing this need with Gas Turbine Air Treatment Global Decisions Positioning System^™ (GDPS).

For more information on Gas Turbine Air Treatment Market and Knowledge Bridge, click on:

Purchases of NO_x Control Systems and Catalyst to Exceed $12 Billion This Year

Power generators and industrial facilities will spend $12.8 billion for NO_x control systems and replacement catalyst in 2013. Thanks to the decision of the Chinese government to retrofit 400,000 MW of existing power plants and add 250,000 MW of new power plants with SCR in the next five years, the market will continue to grow. This is the conclusion reached in NO_x Control World Markets published by the McIlvaine Company. (www.mcilvainecompany.com)

World Region	2013
Total	12,864
Africa	8
CIS	9
East Asia	9,747
Eastern Europe	1,235
Middle East	204
NAFTA	869
South & Central America	20
West Asia	18
Western Europe	754

Most of the present revenues and most of the growth will be in the coal-fired sector. This is despite the increasing use of SCR on gas turbines. Coal will be the fuel of choice for new power plants in Asia. Even though many gas turbine generators will be installed in the U.S. and Europe, their capacity will not equal that of the new coal-fired power plants installed in Asia.

Furthermore, the cost of the SCR systems for gas turbines is less than for coal-fired boilers. The catalyst also lasts nearly twice as long as the catalyst in coal-fired power plants. However, the total air treatment for gas turbines includes filtration and treatment of inlet air plus not only NO_x but also CO reduction in the exhaust gas. So the total gas turbine air treatment market is a sizable $10 billion per year.

For coal-fired power plants anhydrous ammonia is the most popular reagent. Systems which convert urea to ammonia are also popular. For gas turbines aqueous ammonia is the reagent of choice. Even though the cost is higher for this dilute solution, the total amount of reagent required is much lower for gas turbines than for coal-fired power plants. So the higher consumables cost is offset by the capital reduction and the lower safety risks.

The U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, September 30 awarded contracts to 11 companies who will provide design/build support for energy and energy conservation projects worldwide.

The $600 million shared capacity contract will be for the design and construction of conventional and renewable energy projects (e.g. solar walls; solar hot water; day lighting; geothermal heating and cooling systems; heating, ventilation and air conditioning replacement; solar thermal roof tile heating systems; installation of solar tubes and controls; lighting retrofits; photovoltaic roof systems; geothermal domestic hot water; geothermal heating plants; building envelope improvements; installation of direct digital controls; energy monitoring and control systems; and wind turbines). Scope of services for one base year and four option years will include all design, construction, and construction-related work.

These contracts are not part of the $7 billion multiple award task order contract for renewable and alternative energy power production for Department of Defense installations. It is a separate contract vehicle.

Samsung Renewable Energy, Inc. (Samsung) and Pattern Energy Group LP (Pattern Development) announced the completion of financing for the 150 megawatt (MW) Grand Renewable Wind (GRW) project in Haldimand County, Ontario. Utilizing Ontario-made wind turbine blades and towers, the GRW project will produce clean energy equal to the needs of approximately 50,000 Ontario homes each year. The 150 MW GRW project will be accompanied by Grand Renewable Solar, a 100 MW solar power project, with both projects providing a combined capacity of 250 MW of renewable energy.

More than 1,000 workers from across Ontario will be involved in every aspect of the GRW project – from manufacture and assembly of the wind turbine components to site construction, installation work and project operations. Hundreds of workers will be on site during construction, including local subcontractors that will be utilized for various aspects of the project's construction. The GRW project will begin construction soon and is scheduled to be completed in the fall of 2014.

FPL’s Office of Clean Energy Announces Upcoming Solar Programs for Customers

Florida Power & Light Company's Office of Clean Energy announced its plans for funding a range of solar-power installations and educating customers about solar energy.

This fall, FPL will offer approximately $9 million in rebates for residential and business customers who wish to install solar water heater or solar photovoltaic (PV) systems. In addition, FPL plans to install solar arrays at nearly 100 public schools and other educational facilities throughout its territory while also helping more than 400 families in need by installing solar water heater systems in homes being built or refurbished by Habitat for Humanity and other non-profit organizations. All of these projects are part of a pilot program approved by the Florida Public Service Commission.

An individual solar installation requires a significant upfront investment from the customer. Based on data provided by customers who received FPL solar rebates during the past year, the upfront cost of a typical, 5-kW residential solar system is currently in the range of $20,000 to $25,000. At $2,000 per kW, FPL's solar rebate would offset $10,000 for this size installation.

IKEA Planning State’s Largest Geothermal Project for Heating & Cooling Kansas City Area Store

IKEA, the world’s leading home furnishings retailer, announced plans to incorporate geothermal technology into the heating and cooling system of its future Kansas City-area store under construction in Merriam, KS. Related drilling and underground work should be complete by winter, with the system – the largest such project in Kansas or Missouri – ultimately operational when IKEA Merriam opens Fall 2014 as the second U.S. IKEA store tapping geothermal. (Denver-area IKEA Centennial opened with geothermal in 2011.)

This closed-loop ground source heat pump system involves drilling 180 boreholes – six inches in diameter and 600 feet deep – into the earth across part of the 19-acre IKEA parcel. Pipes placed into these boreholes will form an underground network of loops for circulating 36,000 gallons of heat-transferring liquid (a water-based, anti-freeze solution) connected to 64forced-air heat pumps to cool and heat the store. This system also includes five hot-water heat pumps to provide potable hot water needed for the store’s lavatory and restaurant operations.

Consistent with the company’s goal of being energy independent by 2020, IKEA globally has installed more than 300,000 solar panels, owns/operates approximately 137 wind turbines in Europe, and has geothermal systems at approximately 50 locations. For the development, design and installation of the Merriam store’s customized geothermal project, IKEA contracted with Colorado-based Major Geothermal, a leading integrator of geothermal heat pump system design and installation, with experience on projects in Asia, Europe and North America.

New High BTU Landfill Gas-To-Energy Facility Will Benefit Houston and Fort Bend Residents

WCA, Morrow Renewables, and Enerdyne Power Systems hosted a ribbon-cutting ceremony for their collaborative joint high BTU landfill gas-to-energy project at the WCA-Fort Bend County Landfill in Needville, TX. The Fort Bend Landfill serves disposal needs for much of the greater Houston region. The gas project recovers methane gas from the landfill and converts it to pipeline quality natural gas, which is pumped into a pipeline for public use. The project is beneficial to the environment by reducing greenhouse gas emissions.

The annual reduction of greenhouse gases attributable to this project is approximately equivalent to the carbon dioxide emissions from nearly 468,000 barrels of oil or 22,557,000 gallons of gasoline consumed, or the carbon sequestered annually by nearly 165,000 acres of pine or fir forests.

For more information on Renewable Energy Projects and Update please visit:

§ Four Corners needs to respond to Regional Haze FIP by December 31, 2013

§ Muscatine Power and Water to apply ChemMod^® to Coal before firing for Mercury and NO_xControl

§ B&W Begins Front-End Engineering and Design Work for FutureGen 2.0 Carbon Capture Project

“Chinese Air Pollution Control Developments and Opportunities” is the Hot Topic on October 17, 2013

Join us Thursday, October 17^th at 10 a.m. CDT for an analysis of the recent regulatory, commercial and technical developments in China which impact the market for air pollution control equipment, consumables and services.

Bob McIlvaine, President of the McIlvaine Company will analyze the impact of recent changes in the regulations affecting power plants and other air polluters. The future markets for FGD, DeNO_x, particulate and acid gas reduction will be predicted. The market for mercury control will also be discussed. The competitive situation, margins and competition between domestic and international suppliers will also be addressed.

China will spend more to combat air pollution than any other country in the next five years. In fact, it will spend more than all of Europe and all of the Americas. Because it has had an accelerated investment in air pollution control for more than a decade, it has an installed base of scrubbers which is three times greater than any other country. It will add more SCR systems for DeNO_x in the next five years than exist now in Europe and the Americas combined.

This 90 minute session will be free-of-charge to McIlvaine subscribers. The cost is $125 for others.

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.

DATE	Non-Subscribers Cost	SUBJECT	Webinar Type
October 17, 2013	$125.00	Air Pollution Control in China	Power
October 31, 2013	$125.00	Chinese FGD/SCR Program and Impact on the World	Power
November 21, 2013	$125.00	Wet vs. Dry ESP	Power
December 5, 2013	$125.00	Update on Gasification Projects and Technology	Power
December 12, 2013	$125.00	Selecting FGD Scrubber Components	Power
December 19, 2013	$125.00	Application of U.S. Mercury Control Technology in Other Countries	Power