August 2015 - Power Air Quality Insights 219

Revenues for suppliers of bags, filters and systems to capture dust from exhaust stacks will exceed $14 billion this year. Only modest growth is anticipated if suppliers do not change their scope of supply; but those who supply “Total Solutions” will be participating in a much larger more profitable market. These are the conclusions reached by the McIlvaine Company in N021 World Fabric Filter and Element Market. (www.mcilvinecompany.com)

Fabric Filter Revenues $ Billions
Product	2015	2019
Bags	2.9	3.6
Minimal systems	9.3	10
Additional Total Solutions	2	10
Total	14.2	23.6

CECO and Nederman are companies who understand the Total Solutions opportunity and are pursuing it. They provide complete ventilation systems. With better designed hoods and ductwork, smaller dust collectors can be utilized. Knowledge of applications and how to avoid interference with operations while placing the dirty air intake as close as possible to the source are essential for success. Manufacturers of steel, automobiles, machinery and castings around the world realize that they must provide healthy working conditions for workers while meeting emission requirements. They are willing to pay a premium for special expertise to ensure realization of these goals.

GEA, KC Cottrell and others have developed niche application knowledge in mining, steel and other industries which allows them to service manufacturers in every country.

Clarcor and Nederman have purchased bag suppliers to allow them to supply all the system repair parts. The Total Solutions opportunity includes yearly contracts with end users to help them manage their bag replacement programs. Clarcor has gone a step further and offers this service not only for dust collectors but for all the filters in a plant.

The major driving force behind Total Solutions is the knowledge explosion. The engineer replacing the retiree has ten times the knowledge available to him. There is no way he can do justice to this knowledge by himself. He will, therefore, be willing to pay a premium to the knowledgeable supplier.

These forecasts are only for dust filtration. A new hybrid dust filter with embedded catalyst also removes volatile organic (VOC) compounds and NO_x. This is an ideal Total Solutions opportunity, but is not included in the above forecasts.

OEMs, EPCs and Consultants Will Account For Flow Control and Treatment Purchases of $68 Billion In 2015

End users will defer to OEMs, EPCs and consultants to make the purchasing decision for 17 percent of the flow control and treatment purchases. The total purchases determined by these companies will exceed $68 billion in 2015. This is the latest forecast in N064 Air/Gas/Water/Fluid Treatment and Control: World Market. The 20,000 companies responsible for these purchases are identified in the McIlvaine OEM networking directory.

The average annual purchase per company will be in excess of $3 million. The largest category will be valves where the non-users will purchase or direct purchase of valves totaling $20 billion. OEMs and EPCs are direct purchasers of the products. Consultants and engineering firms are specifiers but leave the actual purchase to the end user or OEM. The largest EPCs and consultants such as Fluor and Bechtel will each account for hundreds of millions of dollars’ worth of flow control and treatment equipment.

Large OEMS such as Mitsubishi, Babcock &Wilcox, Veolia and others providing complete power, wastewater, or industrial systems are purchasers rather than manufacturers. Large coal-fired power plant suppliers purchase entire sub systems as well as proprietary products. In cases where they supply proprietary products, they are typically purchasing castings and fabrications.

Product	Revenue
Pumps	15
Valves	20
Cartridge	2
Sedimentation/ Centrifugation	3
Cross-Flow Membranes	4
Macrofiltration	2
Biological/Oxidation/Destruction	3
Water/Wastewater Chemicals	2
Filtration/Purification	2
Fabric Filter	2
Scrubber	1
Precipitator	2
FGD	1
DeNO_x	2
Thermal/Catalytic	2
Fans and Compressors	5
Total	68

The critical decisions on smaller products such as valves and pumps are usually made on a local level. Some of the consulting and engineering companies have hundreds of offices worldwide. For larger system decisions the local offices will often defer to a specialist who is assisting the local offices globally.

McIlvaine has identified each OEM and consultant with a financial entity number. This is critical in identifying the subsidiaries of conglomerates and for Chinese companies where there are a variety of English names for the same entity.

President Obama announced the U.S. Environmental Protection Agency’s final Clean Power Plan, which will cut U.S. carbon pollution from the power sector by 870 million tons, or 32 percent below 2005 levels, in 2030 on August 3.

The Clean Power Plan accelerates the transition to a clean energy future, which is happening even faster than expected—which means carbon and air pollution are already decreasing, improving public health year by year. By 2030, the plan will cut carbon pollution from the power sector by nearly a third and additional reductions will come from pollutants that can create dangerous soot and smog, translating to significant health benefits for the American people. By 2030, emissions of sulfur dioxide from power plants will be 90 percent lower and emissions of nitrogen oxides will be 72 percent lower, compared to 2005 levels.

EPA’s plan reflects unprecedented public input, including more than 4.3 million public comments on the proposal, and hundreds of meetings with stakeholders. It works by building on strategies states and businesses are already using. Today, the United States uses three times more wind and 20 times more solar energy than it did in 2009, and the solar industry added jobs 10 times faster than the rest of the economy. It safeguards energy reliability by setting common-sense, achievable state-by-state goals that build on a rapidly growing clean energy economy and gives states and utilities the time and flexibility they need to meet their goals.

The final rule establishes guidelines for states to follow in developing and implementing their plans, including requirements that vulnerable communities have a seat at the table with other stakeholders. EPA is proposing a model rule states can adopt, as well as a federal plan that the EPA will put in place if a state fails to submit an adequate plan. Both the proposed model rule and federal plan focus on emissions trading mechanisms to make sure utilities have broad flexibility to reach their carbon pollution reduction goals. EPA also finalized standards to limit carbon pollution from new, modified and reconstructed power plants.

The American Wind Energy Association (AWEA) says more than 1.6 GW of newly installed capacity wind turbines came online during the second quarter, with more than 13.6 GW currently under construction.

According to AWEA, more than 10 wind projects are under construction in 24 states representing more than 13,600 MW of total wind capacity and over $20 billion worth of private investment. The majority of new wind construction activity is in Texas, with Oklahoma, Kansas, Iowa and North Dakota also benefiting from large amounts of new investment.

SunEdison Inks Largest Open Access Solar PPA with India's Biggest Utility, Tata Power Delhi Distribution Limited, to Deliver 180 Megawatts of Solar

SunEdison, Inc. announced that it has signed a long-term power purchase agreement with Tata Power Delhi Distribution Limited (TPDDL) to provide 180 megawatts (MW) AC of utility-scale solar power for the people of New Delhi. TPDDL is the largest electricity distribution utility in Delhi, and provides power to over 6 million people in India's capital city. This is the largest agreement that SunEdison has signed under the open access solar framework, which allows renewable energy providers to sell energy directly through the national grid to end customers.

The solar power plants for this project will be built in Madhya Pradesh and are expected to supply TPDDL with electricity over the next 20 years. The plants are projected to generate 375,000 megawatt-hours a year. The operation and maintenance of the solar power plants will be performed by SunEdison Services, which provides 24/7 asset management, monitoring and reporting services.

ENEL Green Power Brings Online World’s First Integrated Geothermal and Biomass Plant in Tuscany

Enel Green Power has brought online the world’s first biomass plant used to heat geothermal steam at the Cornia 2 geothermal power plant, which is located in Castelnuovo Val di Cecina in Tuscany. The project will increase both the energy efficiency and the power output of the geothermal cycle.

The existing geothermal plant has been joined by a small power plant fuelled by virgin forest biomass sourced from within a radius of 70 km of the facility: using the biomass, the steam entering the power plant is heated from an initial temperature of between 150° and 160° Celsius to 370°-380° Celsius, increasing the net electricity generation capacity thanks to both the increased enthalpy of the steam and the improved efficiency of the cycle, the latter of which is due to lower moisture levels during generation.

Enel Green Power invested more than €15 million in the project. The new 5 MW facility is expected to increase the geothermal plant’s output by more than 30 GWh per year while avoiding the annual emission of over 13,000 tons of CO₂. There will also be a substantial impact on employment, with an additional 35 to 40 direct and indirect jobs in sourcing the local biomass being generated.

RES' Two Largest Energy Storage Projects in North America to Get DNV GL Technical and Financial Review

RES is constructing two 19.8 megawatt (MW) energy storage systems, each able to store 7.8 megawatt-hours (MWh) of energy. RES anticipates completing construction on the Jake Energy Storage Center in Joliet, IL, and the Elwood Energy Storage Center in West Chicago, IL, in the third quarter of 2015.

DNV GL, a leading resource of independent energy experts and certification body, will provide technical and financial due diligence on the two energy storage projects. These two projects together will comprise one of the largest energy storage deployments in North America. DNV GL anticipates this battery storage technology, when combined with proven PV solar technology, can provide significant benefits to power grids.

The projects, intended to provide energy storage over the course of a decade, will provide frequency regulation service to support grid efficiency. DNV GL will thoroughly vet the technology and financial aspects of the projects, providing services to potential project lenders that include battery technology review, civil and electrical design review, project schedule and capital cost review, commissioning document review, environmental permitting compliance review, site inspection, and performance verification.

· Meralco to invest in Three Coal-fired Power Plants in the Next Five Years

· Flowserve is delivering Pumps to PGE in Poland for Two 900 MW Ultra-supercritical Boilers

· Amec Foster Wheeler wins Second CFB Combined Heat and Power Plant Contract in Poland

· Unanimous support at Hearing for Gas-fired Power Plant in Lordstown, Ohio

· Construction starts on Kings Mountain, North Carolina Gas-fired Power Plant

· GE may sell Alstom’s Gas Turbine Assets to gain EU Anti-trust approval

· FirstEnergy wants Ohio to end Deregulation, return to State-controlled Rates

· “Gas Turbine Emission Control and Exhaust Systems” is the Subject for the Hot Topic Hour on August 6, 2015 at 10 a.m. CDT

On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. These Webinars are free of charge to owner/operators of the plants. They are also free to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility Tracking System. The cost for others is $300.00 per webinar.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT	DESCRIPTION
August 6, 2015	Gas Turbine Emission Control	More Information
August 20, 2015	Total Solution Options	More Information