Power Air Quality Insights No

· Top Eight Thermal/Catalytic Treatment Suppliers Have 18 Percent of the World Market

If you are a utility with questions or a supplier/consultant with answers on solutions for MATS, CCR, ELG, gas turbine air treatment or power plant drives, you will want to participate in a unique new service at Power-Gen. All we need from you is your expression of interest, e-mail and mobile numbers and we will make sure you are included.

With the air toxics, coal combustion residue and wastewater ELGs utilities are faced with difficult decisions. McIlvaine is introducing free decision systems to help make the best choices. One aspect is the creation of route maps from one decision tree to another. These route maps are being utilized at Power-Gen so that utilities can network, visit exhibit stands and attend speeches most efficiently. There are four route maps already underway:

These route maps are being constantly updated. When we receive your input, it will be posted within the day. We will be updating and coordinating up to and through the show.

There is a good panel discussion on this important subject which deals with how the utilities should tackle the upcoming ash and effluent regulations. United Conveyor and Clyde Bergemann are among the exhibitors with hardware solutions. Dennis Fink of CH₂M Hill will be a speaker on the subject and will be available throughout the show through mobile phone and at the CH₂M Hill stand. Bryan Hansen of Burns & McDonnell will be speaking on the FGD wastewater implications and will be available throughout the three days.

There are a number of other consultants listed but without the specific contacts/schedules. We need these. Gordon Maller of URS gave a presentation in one of our webinars on this subject and re-introduced the very promising approach of mixing gypsum, lime and flyash and permanently fixing the waste. If Gordon is going to be on hand or if one of the other URS people can address this option, we should be provided with the appropriate schedule information.

There are a number of speakers from Sargent & Lundy one of whom recently presented on CCR in a McIlvaine webinar. So hopefully there will be someone available to network on the subject.

Look over the route map and, if it is applicable, send us your e-mail, mobile # and schedule. If you are an exhibitor and we missed your involvement, we can rectify it based on your input.

Improving the efficiency power plant drives is one of the best ways to improve profits and reduce pollutants per kWh. The optimum integration of the motor selection with the rest of the drive train is one of the opportunities. There are numerous variable speed, geared and direct combinations which may best fit a conveyor, fan, pump or rotary heat exchanger. Here is your opportunity to tap the wisdom of the system suppliers, consultants and the drive suppliers.

There is really only one applicable speech (direct drives for cooling towers by ABB). However a number of suppliers of motors, inverters and complete drives will be exhibitors.

We have identified thirteen decision trees among fans/compressors, material handling and size reduction. Exhibitors for each are identified. We are still working on a number of decision trees for pumps and will add this to the above linked document in the next few days.

Each of these equipment exhibitors has extensive drive expertise. We are seeking contacts at the stands who can address the drive questions. The same is true of the consultants. In the route map, we have excerpted from a Sargent & Lundy/CPS paper on variable speed drives for sorbent injection.

Through mobile communication we expect to improve the networking. David Jackson of Siemens will be roving and focused on impromptu discussions.

To make sure you are included, send us your area of interest, contact information and schedule during the show.

The selection of intake air filter influences your selection of catalyst. If you use a more efficient filter, you can use a narrower pitch catalyst. This is just one reason to integrate all your decisions about gas turbine air treatment from the inlet weather protector through the exhaust stack.

There some good speeches relative to air intake filters (Camfill Farr and GE) and other components. Alstom is giving a speech on fogging. There are no speeches on catalysts, but there is one on an alternative.

There are many exhibitors offering filters, conditioning, catalysts, SCR, silencers and duct burners. There are likely to be many consultants with knowledge. Last year we organized one good networking event. We met at the Pneumafil booth and a consultant explained how a highly efficient inlet filter is necessary in many areas just to meet the emission limits. If the air entering the intake is dirtier than the quality required in the discharge, then removal is needed. This year we want to expand such conversations.

Check out all the decision stops in this GDPS and let us know where you want to participate.

The MATS decisions loom large on the agenda for most power plants. Decisions on how to reduce mercury, HCl and toxic metals impact decisions relative to soil and water. The potential expense is high enough to generate considerations of plant retirement, so there is a very complicated decision route map.

The good news and bad news is that there are a number of new and potentially cost-effective options for meeting the limits. The bad news is that lots of investigation and analysis is needed to make the right decisions.

There are lots of good speeches and exhibits on the subject at Power-Gen. Sargent & Lundy has a number of presentations. CH₂M Hill is also a presenter. All of these speakers will be there for the full conference and are available.

There are exhibitors representing each of the decision trees. Some have novel solutions. For example, Neumann can recover and reuse the sodium used in DSI.

McIlvaine created a similar route map for the air quality conference a few weeks ago.

By comparing these two route maps you have a good insight into the available technology. Some of the most important decisions hinge on sorbent efficiency. As a result, we would like schedules of the representatives of the lime companies who are roving.

If you would like to network on any of these subjects at Power-Gen, just send us the contact and schedule information. You can just reply to this e-mail or send the information to: rmcilvaine@mcilvainecompany.com

Due to substantial Chinese investment plus a bubble in U.S. spending, the flue gas desufurization (FGD) market will increase 49 percent between 2013 and 2015. FGD investment in 2015 will be just under $4.3 billion. This is the latest forecast in FGD Markets and Strategies published by the McIlvaine Company. (www.mcilvainecompany.com)

Subject	2013	2014	2015
Total	3,095	3,548	4,292
Dry Lime	275	323	394
Other	90	105	128
Wet Calcium	2,730	3,120	3,770

In the last five years, the two markets accounting for most of the FGD investment have been the U.S. and China. The Chinese market remains strong, but is below its peak year. The U.S. market is much smaller now than in 2010. It will rebound somewhat over the next two years. This is due to the new air toxic laws.

The new toxic pollutant regulations in the U.S. require removal of HCl. Scrubbers which remove HCl also remove SO₂. As a result, EPA says the corollary reduction of the SO₂ will be one of the biggest health benefits of the new regulations.

The larger and newer power plants in the U.S. already have scrubbers. So the new regulation primarily involves the older and smaller power plants. Many of these power plants are planning on taking a route with high operating costs and low capital costs. The reason is that remaining life of these power plants is in question. The preferred option is to avoid the capital cost of a scrubber by injecting lime or sodium into the duct prior to the precipitator. This is called dry sorbent injection (DSI).

There are two problems with this approach. The annual sorbent cost can be prohibitive. The efficiency may not be high enough to meet the requirements when high chlorine fuels are burned.

Since necessity is the motherhood of invention, there have been some new developments to make this approach more cost effective. New high efficiency lime sorbents have been developed. So, in most cases, dry injection followed by a precipitator will provide the required efficiency.

Another approach is the recovery and reuse of sodium sorbents in a process where calcium sulfate is the waste product. This appears to offer both the high efficiency needed and the low annual sorbent cost.

Top Eight Thermal/Catalytic Treatment Suppliers Have 18 Percent of the World Market

The market for companies selling thermal oxidizers, regenerative thermal oxidizers, catalytic oxidizers, replacement catalysts and packing in 2012 was $1.8 billion. The leading eight suppliers captured fewer than 18 percent of the market. This is the conclusion reached by the McIlvaine Company in Thermal Catalytic World Air Pollution Markets published by the McIlvaine Company. (www.mcilvainecompany.com)

Suppliers include companies oriented around catalysts such as Johnson Matthey and BASF. They also include companies who make the systems which cause volatile organic compound emissions. This would include Durr, Eisenmann and MEGTEC. A third category is companies such as Anguil who are focused on the air pollution control industry.

These totals do not include flare system revenues or revenues where both liquids and gases are incinerated. Thus, many oil and gas applications are not included.

There are twenty additional companies which accounted for 2012 revenues of $150 million. The balance of just under $1.3 billion was generated by two hundred companies averaging less than $1 million in 2012 revenues.

The market for filters to purify air recirculating within commercial and industrial facilities as well as residences will exceed $6.9 billion next year. This is the latest forecast in Air Filtration & Purification World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

Industry	2014
Total	6,934
Bioclean	548
Commercial	1,619
Electronics	615
Cabin Air	1,099
Other Industries	1,615
Power	438
Residential	1,000

The commercial market will be the largest due to the large volume of air which must be purified. It is also a function of the selection of relatively high priced filters. The cabin air market includes the air in the breathing zone in land vehicles as well as ships and oil platforms.

The power market reflects the use of inlet air filtration for gas turbines. The filters used on coal-fired power plant stacks are included in a separate McIlvaine report. The gas turbine intake market is forecast to double over the next few years. One reason is the growing use of gas turbines for power generation as well as for industrial power. The bigger reason is the movement toward high efficiency filters and away from medium efficiency filters.

New studies show that with the latest generation of high performance turbines filtration efficiency is critical. Very small particles build up on the rotating surfaces and cause a loss in turbine output. Switching to filters with up to four times the cost of existing filters will make such a difference in turbine performance as to quickly justify the higher cost.

Minnesota Power’s Great Northern Transmission Line will ‘Unlock a Powerful Synergy’ between Wind and Hydro Power

Citing the benefits of additional clean energy to power electric growth across a stronger regional electric grid, ALLETE division Minnesota Power recently outlined the public need for a 500-kilovolt (kV) Manitoba-Minnesota transmission line.

The Duluth-based company filed October 21, 2013 with the Minnesota Public Utilities Commission (MPUC) a Certificate of Need application for the approximately 240-mile 500 kV Great Northern Transmission Line, which will link to a Manitoba Hydro transmission line at the Canada-U.S. border, and will carry renewable hydro power from the province of Manitoba, Canada, to a Minnesota Power electric substation on Minnesota’s Iron Range. The international transmission interconnection is needed to support delivery of hydroelectric energy from Manitoba Hydro to the U.S. from two new generating stations under development in northern Manitoba that will be capable of producing more than 2,000 megawatts (MW) of renewable electricity.

The Great Northern Transmission Line will facilitate the delivery of at least 750 MW of energy into the U.S. Beginning in June 2020, Minnesota Power will utilize the Line to deliver 250 MW from Manitoba Hydro through a power purchase agreement approved by the MPUC in early 2012. In addition, the two utilities recently finalized a term sheet outlining how Minnesota Power will purchase additional energy and substantially expand its energy storage opportunities using the new transmission asset.

The Vestas De-icing System (VDS) boosts the business case for operating wind power plants in cold climates.

According to the BTM World Market Update 2012, severe icing can potentially reduce wind turbines’ annual energy production by more than 20 percent, directly impacting the business case for wind power plants in cold climates. VDS has been developed to detect and efficiently remove ice formed on wind turbine blades, maintaining full power production – and therefore revenue generation for customers - through the winter months.

“The VDS is an active de-icing solution consisting of an ice detection system and a hot air flow unit within the blades. The hot air flow targets the blade’s most critical parts to efficiently melt ice build-up, with no negative impact on the noise level or overall performance of the turbine,” explains Chief Technology Officer Anders Vedel.

“VDS will provide significant value to customers who want to harness the potential of wind power in colder climates with icing risk such as North America as well as the northern and central regions in Europe, which were previously not economically feasible due to the risk of ice affecting power production,” he says.

Vestas has successfully tested a concept de-icing solution in Canada for the past winter season. The first prototype for the VDS has been installed at a site in Sweden and will be tested throughout the winter. An order has already been received for the first four VDS units, to be installed on a V112-3.3 MW project in Austria in 2014.

Canadian Solar Begins Construction of 100 MWac Utility Scale Solar Power Plant in Ontario

Canadian Solar Inc. announced that its subsidiary, Canadian Solar Solutions Inc., has begun construction of the 100 MWac Grand Renewable Solar Project utility-scale solar farm. The Grand Renewable Solar Project is Canada's largest photovoltaic (PV) project, and is being financed by Connor Clark & Lunn Infrastructure and developed by Samsung Renewable Energy Inc. (Samsung).

Under the previously announced agreement, the solar power plant is expected to be fully operational in 2015. This agreement is expected to generate revenue of approximately C$310 million (U.S.$301.1 million) for Canadian Solar, including Engineering, Procurement and Construction (EPC) services, which were awarded to Canadian Solar by Grand Renewable Solar LP (GRS) in June 2013.

The 100 MWac utility-scale solar power plant, which is located in the Haldimand County, will include approximately 440,000 Canadian Solar CS6X high performance modules.

Hawaiian Electric Requests Approval to Move Forward with 15 MW Solar Energy Project

As part of its commitment to bring more low-cost clean energy online, Hawaiian Electric Company , subsidiary of Hawaiian Electric Industries, has filed a request with the Hawaii Public Utilities Commission to proceed with the development of a 15-megawatt photovoltaic system on undeveloped land at the Kahe Generating Station.

Developing the project on land owned by Hawaiian Electric helps to reduce the cost to customers. Based on preliminary estimates, the project, over its lifespan, would reduce the overall cost of generating electricity on O’ahu by $64 million while displacing approximately 1.8 million gallons of oil per year.

This level of savings is equivalent to a 20-year power purchase agreement with a price of 14.5 cents per kilowatt-hour. That is significantly less than the cost of using oil to produce power, which is currently estimated at 22.7 cents per kWh.

The City of Chicago announced a new process that will cut down on the soft costs associated with installing solar technologies and connecting them with ComEd’s municipal energy grid.

As hardware costs for solar panels have dropped, soft costs, or the costs of permitting, labor and financing solar installations have remained stubbornly level. Chicago’s plan includes a new online permit platform that will reduce permit wait times from 30 days to 1 day.

Along with the expedited permitting process, Chicago’s Department of Buildings has published new guidelines, outlining clear steps for general contractors to follow for designing both small and large systems to City standards, making requirements clearer and making doing business with the City easier. Significantly lowering the cost to install a large rooftop solar arrays, the new guidelines update structural design requirements to recognize improvements in the design of ballasted systems over recent years.

Other reforms include simplifying the zoning process by providing policy interpretation and design guidance for all solar types in all sectors and streamlining the process for connecting solar panels to the electric grid. This partnership will introduce the Online Interconnection and Net Metering Enrollment, a tool to be launched by ComEd by year-end that will allow applicants to submit, track, and pay for applications through an online platform. This will enable applicants to connect their solar generator to the grid and receive credit on their bills for producing their own electricity.

§ 130 Presenters updated Attendees on the Latest Air Pollution Developments

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
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
January 9, 2014	$125.00	Improving ESP Performance	Power
January 16, 2014	$125.00	Corrosion Issues and Materials for APC Systems	Power
January 23, 2014	$125.00	Co-Firing Sewage Sludge, Biomass and Municipal Waste	Power
January 30, 2014	$125.00	Impact of Ambient Air Quality Rules on Fossil Fueled Boilers and Gas Turbines	Power
February 6, 2014	$125.00	Review of EUEC	Power
February 13, 2014	$125.00	NOx Catalyst Performance on Mercury and SO3	Power
February 20, 2014	$125.00	CFB Technology and Clean Coal (Update on CFB Reactor Technology)	Power
February 27, 2014	$125.00	Dry FGD: Spray Dry vs. CFB vs. DSI	Power
March 6, 2014	$125.00	Update on IGCC (Integrated Gasification Combined Cycle)	Power
March 13, 2014	$125.00	Update on Oxy-Fuel Combustion	Power
March 20, 2014	$125.00	Air Preheaters & Heat Exchangers	Power
March 27, 2014	$125.00	Mercury Control and Removal	Power
April 3, 2014	$125.00	HRSG Design, Operation and Maintenance Considerations	Power
April 10, 2014	$125.00	Measurement and Control Instrumentation for Power Plants	Power
April 17, 2014	$125.00	Measurement and Control of PM2.5	Power
April 24, 2014	$125.00	Status of Carbon-to-Liquid Projects and Technology	Power
May 1, 2014	$125.00	Renewable Energy, Status, Options, Technology Update	Power
May 8, 2014	$125.00	Valves for Power Plant Steam and Cooling Water	Power
May 15, 2014	$125.00	Water Treatment During Gas and Oil Production	Power
May 22, 2014	$125.00	Advances in Coal Blending	Power
May 29, 2014	$125.00	Clean Coal Technologies	Power
June 5, 2014	$125.00	Material Handling in Fossil Fueled Power Plants	Power
June 12, 2014	$125.00	Industrial Boiler MACT - Impact and Control Options	Power
June 19, 2014	$125.00	Multi-emissions Control Technologies	Power
June 26, 2014	$125.00	Next Generation of Coal Combustion Technologies	Power
July 10, 2014	$125.00	Compliance Strategies for PM2.5

Ranking	% Of Total Market
1	5.5
2	3.3
3	2.2
4	1.9
5	1.4
6	1.1
7	1.1
8	1.1
Sub-total	17.6
Others	82.4
Total	100