Oil Price Fall Will Boost Gas Turbine Purchases
The lower prices for oil ultimately translate into lower gas prices which, in
turn, encourage retirement of coal-fired power plants and replacement with gas
turbine generators. Lower gas prices also have a negative impact on sales
of wind turbines and solar power plants. These trends are continually tracked in
several McIlvaine services. (www.mcilvainecompany.com)
Europe and the U.S. have a number of coal-fired power plants which are
candidates for retirement. One option taken by Europe is to replace the
old coal-fired power plants with new ones. The U.S. has eliminated this
option and is faced with upgrading 50 year old power plants or retiring them.
Gas prices in the U.S. are projected to be around $4/MMBtu in 2015. This price
is already the basis of the present plans for most generating companies.
However, if the price fell to $2/MMBtu with any assurance that the level would
remain this low for a decade, then there would be a large number of coal-fired
power plant replacements.
There are a number of factors which impact gas prices. Despite record high
production levels, U.S. gas inventories are still 0.24 TCF (trillion cubic
feet), or 6 percent lower than last year’s inventory levels and 0.26 TCF, or 7
percent lower than the five-year average (2009-13). If this winter is
anything like the previous one, prices might spike. But the EIA projects lower
residential and commercial demand based on milder temperature forecasts and
higher forecasted natural gas prices.
The price of oil has a powerful effect on gas prices because one can be
substituted for the other. However, there are some exceptions. The U.S.
cannot easily export gas and so the price in the U.S. is not reflective of world
oil or gas prices.
Another aspect is the relative value of the dollar against the yen, euro and
other currencies. Oil prices are tracked in U.S. dollars. When the dollar
rises against other international currencies then oil prices fall. (You
can exchange dollars for more euros and buy more oil.)
In general, the low gas prices are creating optimism among suppliers of
equipment and services. Gas turbine suppliers are anticipating industrial gas
turbine sales of more than $40 billion per year over the next fifteen years.
Component suppliers are also optimistic. Donaldson anticipates its gas
turbine sales will increase 25 to 30 percent due to an expected improvement in
the large turbine power generation market. This forecast includes $17 to $20
million from the Northern Technical acquisition, which was completed in
September.
The markets for gas turbines, coal-fired power plants and nuclear generators is
tracked in N043
Fossil and Nuclear Power Generation: World Analysis and Forecast
The specific gas turbine markets are tracked in
59EI Gas
Turbine and Combined Cycle Supplier Program.
Oil and gas activities are tracked in
N049 Oil,
Gas, Shale and Refining Markets and Projects
Renewable Energy generation is tracked in
N042
Renewable Energy World Markets
Western Europe Industrial Valve Purchases to Exceed $8.6 Billion Next Year
Western European countries will spend $8.6 billion for industrial valves in
2015. This total is the aggregation of more than 20,000 individual forecasts in
Western Europe Industrial Valve Market and Sales Guide.
This report has the level of detail to allow marketing managers to prioritize
the advertising and exhibition expenditures. Sales managers can set quotas
and targets for the individual countries and even for specific products. For
example, this is the level of detail just for ball valves in Austria:
Ball Valve Forecasts for Austria in $ Millions
Industry
|
Classification
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
Chemical
|
Control
|
0.17 |
0.17 |
0.17 |
0.18 |
0.18 |
0.18 |
Chemical
|
On/Off
|
3.17 |
3.22 |
3.28 |
3.34 |
3.41 |
3.48 |
Electronics
|
Control
|
0.02 |
0.02 |
0.03 |
0.03 |
0.03 |
0.03 |
Electronics
|
On/Off
|
0.46 |
0.47 |
0.49 |
0.51 |
0.52 |
0.54 |
Food
|
Control
|
0.10 |
0.10 |
0.10 |
0.10 |
0.10 |
0.10 |
Food
|
On/Off
|
1.84 |
1.86 |
1.88 |
1.91 |
1.93 |
1.97 |
Iron & Steel
|
Control
|
0.15 |
0.15 |
0.16 |
0.16 |
0.16 |
0.16 |
The report can be utilized as part of a complete supplier program with
identification of specific projects. Here are gas turbine opportunities in
Germany:
Location Comment
|
Project Title
|
Startup Date
|
Baden Wurttemberg
|
2020
|
|
Berlin
|
2016
|
|
North Rhine Westphalia
|
2019
|
|
North Rhine Westphalia
|
2018
|
|
North Rhine Westphalia
|
2018
|
|
Berlin
|
2016
|
|
Hesse state
|
On hold
|
|
North Rhine Westphalia
|
2016
|
|
Brandenburg
|
On hold
|
|
Bavaria
|
2015
|
|
Brandenburg state
|
Cancelled
|
For more information on Western Europe Industrial Valve Market and Sales
Guide, click on
New Valve Market Reports Just
Released!
Renewable Energy Briefs
Montana-Dakota Utilities Signs Agreement to Purchase North Dakota Wind Farm
Montana-Dakota Utilities Co., a division of MDU Resources Group announced that
it has signed an agreement to purchase a North Dakota wind farm to be developed
by ALLETE Clean Energy, a subsidiary of ALLETE, Inc.
The wind project, located near Hettinger, N.D., and comprised of 43 turbines
producing 107.5 megawatts of electricity, is anticipated to be completed in
December 2015. The project’s cost is approximately $200 million and the purchase
is subject to regulatory approvals.
Montana-Dakota originally signed a power purchase agreement with Thunder Spirit
Wind in October 2013 to purchase the output of the wind farm. Montana-Dakota
determined that owning and operating the wind farm is the best long-term
solution to meet customer need for energy. Montana-Dakota partnered with ALLETE
Clean Energy (ACE) on an agreement for ACE to acquire the Thunder Spirit Wind
project, complete the development and sell the completed project to
Montana-Dakota. ALLETE has developed other wind projects in North Dakota.
First Wind Closes Financing on Second Project in Texas with MUFG
First Wind, an independent U.S.-based renewable energy company, announced that
it has obtained $254 million in financing for its South Plains Wind project in
Floyd County, TX. With financing successfully in place, First Wind was
able to advance its second renewable energy project in Texas by finalizing an
order with Vestas for 100 V100 turbines with a capacity of 2 megawatts (MW)
each.
South Plains Wind Energy, LLC, a subsidiary of First Wind, closed on a $254
million financing agreement for the South Plains project. Mitsubishi UFJ
Financial Group has committed tax equity for the project. BayernLB is
providing term debt financing for the project.
The South Plains Wind project is located on approximately 51,000 acres in Floyd
County, northeast of Lubbock, TX. Once complete, the project is expected
to deliver power to the ERCOT (Electric Reliability Council of Texas) power
markets through the CREZ (Competitive Renewable Energy Zone) transmission
system, and will have the capacity to generate 200 MW of cost-competitive, clean
energy.
Yingli Green Energy to Power Europe’s Largest Solar Plant
Yingli Green Energy Holding Company Limited, the largest vertically integrated
solar panel manufacturer in the world, known as "Yingli Solar", announced that
it has signed a landmark agreement to supply 120 MW of YGE 72 Cell solar panels
for a 300 MW project in France. Upon completion this will be the largest solar
power park in Europe.
According to the agreement, Yingli Solar will ship more than 393,000
multicrystalline panels between December 2014 and June 2015. The solar park
located in Cestas in the South West of France, covering 250 hectares of land
divided in 25 solar plants, is expected to be connected to the grid in October
2015.
The 360 million Euro project is being developed by Neoen, a leading independent
French power producer. For the engineering and construction, Neoen and the
project's other investors contracted with a consortium of local companies,
including Eiffage-Clemessy and Schneider Electric.
Trina Solar Signs 10 MW EPC Turnkey Solutions Agreement with Shamsuna Power in
Jordan
Trina Solar Limited, a global leader in photovoltaic (PV) modules, solutions,
and services, announced that it has entered into an agreement for the design,
build and operation and maintenance of the 10 MW Shamsuna Solar Project in
Aqaba, Jordan with Shamsuna Power Company.
Foursan Capital Partners will hold a 85 percent stake and Shamasuna Power will
hold a 15 percent stake in the project, respectively. The project is being
financed by International Finance Corporation (IFC) and a small syndicate of
lenders. Construction of the project is scheduled to commence in December 2014
with completion and grid connection expected in the second quarter of 2015. Once
the plant is completed, Trina Solar will provide Operation and Maintenance
services on the project based on a 5 year service agreement with a possible 5
year extension upon mutual agreement.
The solar farm, located in the Aqaba Special Economic Zone, southeast of Aqaba,
Jordan, will utilize 40,320 of Trina Solar's 250Wp TSM- PC05A modules. Once
operational, it will be the largest solar farm in Aqaba, Jordan. All output
generated by the project will be sold to Jordan's National Electric Power
Company (NEPCO) under a 20-year Power Purchase Agreement backed by a full
sovereign guarantee from the Government of Jordan. The project will generate
over 19 GWh of power annually helping to meet the growing demand for electricity
in Jordan and reducing carbon emissions by approximately 11,500 tons per year.
Canadian Solar to Supply 4 MW Energy Storage Solution to Support the Ontario
Grid
Canadian Solar Inc. announced that its wholly owned subsidiary, Canadian Solar
Solutions Inc. will provide 4 megawatt (MW) / 2.76 megawatt/hour (MWh) of
stationary on-grid bulk energy storage to Independent Electricity System
Operator ("IESO") to support the Ontario grid.
The 4 MW project will provide an energy storage solution for ancillary services
applications in Ontario by leveraging Canadian Solar's extensive project
development expertise and success in the Canadian energy market. In
addition, this project was one of twelve selected by IESO in a competitive
application process that was completed in July 2014. Canadian Solar will
be providing reactive power, voltage support and bulk energy storage services to
the IESO using stationary lithium battery technology. Canadian Solar will
provide operations and maintenance to IESO for a period of 36 months.
For more information on Renewable Energy Projects and Update
please visit
http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
Headlines for Utility E-Alert –December 5, 2014
UTILITY E-ALERT
#1202
– December 5, 2014
Table of Contents
COAL – US
·
EPA proposes SO2 Reductions in Texas
·
Supreme Court will Review Mercury and Air toxics rules
·
TVA preliminary Report says FGD and SCR at Shawnee 1 and 4 is Preferable to
Closure
·
EPA Proposes 65 to 70 ppb Ozone Standard
·
Massive Number of comments to EPA's Plan to Limit CO2
from Power Plants
·
Fate of Cayuga Power Plant still in Limbo
·
Alabama Power to increase Rate in 2015
COAL – WORLD
·
Co-Ash Resources to build 1000 MW Waste-Coal-fired Power Plant in Zimbabwe
GAS/OIL - US
GAS/OIL - WORLD
NUCLEAR
BIOMASS
BUSINESS
HOT TOPIC HOUR
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
“Boiler Feedwater Treatment” Thursday, December 18, 2014, at 10:00 a.m. CST
Water sourcing issues, increased pressures for energy efficiency, and advanced
boiler designs make management and treatment of boiler feedwater even more
important for today’s power plant operators. With increasing Federal and State
regulations limiting access to surface and ground water, minimizing water usage
becomes an important factor in the selection of water treatment methods.
Optimum treatment will help prevent chemical and flow corrosion in boiler water,
steam and condensate systems and elimination of scale. Prevention of
corrosion and scale, in turn, helps to ensure maximum life of boilers, steam
turbines, condensers, and pumps, reduces maintenance expenses and allows optimal
thermal performance providing greater efficiency.
There are a wide variety of water treatment systems available, but which system
is most economical for a specific plant considering energy requirements,
chemical costs and performance. This decision is partially dictated by the
minerals in and chemical and physical composition of the raw water. In
general, raw water from lakes, rivers or wells is treated by aeration,
coagulation, filtration and softening all well established processes.
However, shortages of natural raw water from the traditional sources, the
“greening “ of power plants and increasing stringent regulations on disposal of
water into surface waters or even holding ponds are now forcing plants to
consider reusing their process water or even using treated wastewater from
municipal sources. This adds a new dimension to the problem of properly
treating water before adding it as make-up water in the boiler feed systems.
Process and wastewater contain even more contaminants and many at higher
concentrations than typical natural water.
Panelists will discuss the latest technologies available or under
development to treat boiler feedwater from natural, process and waste sources
with emphasis on chemical usage, water usage, and typical water quality that can
be achieved using these technologies. They will discuss how to reduce the
consumption of chemicals and water while achieving better water quality and
lower operating costs and present the economics of various treatment
technologies focusing on energy use, chemical requirements, capital costs, use
of process or wastewater and operation and maintenance costs and issues.
Panelists for Boiler Feedwater Treatment:
Ken Pandya,
President, AWTS Inc.
Michael Dejak P. E.,
Vice President – Global Business Development, Eco-Tec Inc.
Chris Bell,
Ovivo USA, LLC,
Ram Karlapudi,
Pall Industrial - Process Systems
Click here for
the
Subscriber
and Power Plant or Cement Plant
Owner/Operator
Registration Form
Click here for
the
Non-Subscribers
Registration Form
McIlvaine Hot Topic Hour Registration
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 |
December 18, 2014 |
Boiler Feedwater Treatment |
|
January 8, 2015 |
Fabric Selection for Hot Gas
Applications |
|
January 15, 2015 |
Valves for Gas Turbine and
Combined Cycle Plants |
|
January 22, 2015 |
FGD Components Including
Blowers/Compressors |
|
January 29, 2015 |
MATS Compliance Choices |
|
February 5, 2015 |
Gas Turbine Regulatory Drivers |
|
February 12, 2015 |
Coal Gasification Air Pollution
Control |
|
February 19, 2015 |
Mercury Measurement and Capture |
|
February 26, 2015 |
Power Plant Wastewater Treatment |
|
March 5, 2015 |
Dry Scrubbing and DSI |
----------
You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com