Supreme Court Mercury Ruling Will Have Uneven Impact on the Pollution Control
Industry
The Supreme Court in a 5-4 split ruling on Monday rejected the Environmental
Protection Agency’s MATS rules governing toxic air pollutants including mercury.
This ruling will have immediate consequences for the air pollution industry, but
the impact will be uneven. It will affect the suppliers of certain types of
equipment but not others. There are short-range and long-range impacts which are
both negative and positive according to the analysis in the Mercury Air
Reduction Market published by the McIlvaine Company. (www.mcilvainecompany.com)
Justice Scalia, writing for the court’s majority, said “The agency must consider
cost—including, most importantly, cost of compliance—before deciding whether
regulation is appropriate and necessary.” “It is not rational, never mind
‘appropriate,’ to impose billions of dollars in economic costs in return for a
few dollars in health or environmental benefits. Statutory context supports this
reading.”
The EPA had argued that it was not required to take costs into account when it
made the initial determination to regulate. But the agency added that it had
done so later in setting emissions standards and that, in any event, the
benefits far outweighed the cost .The two sides had very different
understandings of the costs and benefits involved. Industry groups said the
government had imposed annual costs of $9.6 billion to achieve about $6 million
in benefits. The agency said the costs yielded tens of billions of dollars in
benefits.
There is a good possibility that there will be little change in the market.
“Given the fact that the EPA has already done a detailed cost benefit analysis
justifying the rule, and the fact that the majority of the affected industries
have already invested heavily in compliance, there is a good chance that the
D.C. Circuit will allow the rule to remain on the books” while the agency makes
its revisions, said Patrick Parenteau, an expert on environmental law at Vermont
Law School.
If the rule is stricken during the re-write period, the largest and most
immediate negative impact would be the loss of sales of activated carbon and
other chemicals to aid in the mercury capture. There will be negative impacts on
suppliers of trona and lime. This rule could delay revenues by several years. On
the other hand, most of the equipment to capture the air toxics has already been
installed. Also there are State regulations which require mercury reduction as
well as limits on other pollutants. These lessen the impact.
Coal-fired generators are subject to other rules which require more efficient
air pollution control equipment and more are lurking. The States have the
responsibility for meeting ambient air quality levels for particulate (PM2.5)
SO2, NOx and ozone. Substantial emission reduction of pollutants at coal-fired
power plants is the most cost effective route for the States to proceed. It is
also the most politically popular as compared to prohibiting home barbecue
grills.
Over time the decision to include cost could be positive for the air pollution
industry. The cost of mercury reduction with the present technology is far less
than anticipated at the time the rules were drafted. Therefore, any revised rule
is likely to be as stringent as the one being stricken.
In fact more stringent rules would be justified. The cost per pound of mercury
removed is a function of the efficiency. The first 70 percent of the mercury can
be removed very cost effectively. At the time of the background analysis for the
rules it was estimated that the cost per pound to move from 85 to 95 percent
efficiency would be ten times that for lower efficiencies. This is no longer the
case. High removal efficiencies can be cost effectively achieved.
If cost is also included in climate change rules, the capture of CO2 will be
hard to justify. There are two reasons:
• Benefits to U.S. citizens are less than to people living along the equator
• The benefits are long term
Any cost benefit analysis of CO2 capture limited to U.S. citizens in the short
term will compare unfavorably to other investments. The Supreme Court ruling was
narrow and focused just on the language in the Clean Air Act relative to
mercury. Nevertheless, there is a precedent set which could be the difference
between shutting down and operating many coal-fired power plants. Scott Segal of
Bracewell & Giuliani, said the decision should come as a warning to the Obama
administration as the EPA prepares to unveil the climate change regulations this
summer.
CO2 reduction can be cost effective if it is tied into efficiency. Extracting
waste heat from the flue gas will be attractive. As a result, modest CO2
reduction rules could have a positive effect on the industry. Coal-fired power
plants have other opportunities to become attractively green. One is the
recovery of rare earths from flyash. Another is to combust municipal and sewage
waste. Use of treated municipal wastewater with zero liquid discharge would mean
that a coal-fired power plant has a positive impact on waterways.
For more on: N056 Mercury Air Reduction Market
Renewable Energy Briefs
DTE Energy to Issue RFP for Large Solar Installation
DTE Energy announced it will issue a Request for Proposal (RFP) to develop a
solar generating facility for DTE Energy.
DTE is seeking proposals for a solar installation with 5 to 50 megawatts of
capacity. The RFP was to be issued Wednesday, June 24 and notices of intent to
bid are due by Wednesday, July 22, 2015.
The solar generating facility must be in DTE Energy's service area and
operational by December 31, 2016. DTE welcomes proposals for projects within the
city of Detroit as well as surrounding communities.
DTE Energy currently owns and operates more than 20 large solar installations in
Michigan, including projects at Ford Motor Co. headquarters in Dearborn and
Monroe County Community College in Monroe. The company recently began
construction of a 1.1-megawatt solar installation near Domino's Farms, just east
of Ann Arbor. The project, which will have the capacity to power nearly 200
homes, will be completed and operational by the end of the year.
First Solar Modules to Power Landmark 200 MW Solar Photovoltaic Project in Dubai
First Solar, Inc. announced that it has signed an agreement to supply its high
performance photovoltaic (PV) modules to power the 200 megawatt (MW)AC second
phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the United Arab
Emirates.
Earlier this year, a consortium led by ACWA Power, a leading water and power
developer, owner and operator based in Saudi Arabia, and TSK, a Spanish
engineering and construction company, was selected by the Dubai Electricity and
Water Authority (DEWA) to develop, construct, own and operate the independent
power project. According to the consortium, the project's tariff of $5.84 per
kilowatt-hour establishes a new global benchmark, reducing the cost of solar
electricity by over 20 percent.
Significantly, the utility scale solar plant will be the largest facility of its
kind in the Middle East when completed in early 2017. The plant will produce
enough energy to power 30,000 average homes in the UAE and will displace over
469,650 metric tons of carbon dioxide per year. The project will be powered by
over 2.36 million First Solar modules, compared to the 152,880 that were
installed in the 13 MWAC first phase of the Mohammed bin Rashid Al Maktoum Solar
Park. The plant will be built over an area of almost 4.5 million square meters,
sufficient to cover as many as 100 soccer pitches.
Everbright International Wins Shandong Xintal Household Waste to Energy Project
China Everbright International Limited is pleased to announce it has won the bid
for Shandong Xintai Household Waste-to-Energy Project, with the leading score in
the overall bidding process. Xintai Project is the ninth household
waste-to-energy project that the group has invested in and constructed in
Shandong Province.
Xintai Project will be constructed on a BOT (Build-Operate-Transfer) basis for a
concession period of 30 years. The project has a designed daily household waste
processing capacity of 900 tons and will be constructed in two phases. Project
Phase I has a designed daily household waste processing capacity of 600 tons,
with a total investment of approximately RMB339 million. All gas emissions will
fully comply with the €2000 Standard and it is expected to generate
approximately 70,000,000 kWh of green electricity annually.
Swansea Bay Tidal Lagoon Unlocks Chinese Inward Investment and British Export
Opportunities
The delivery of the £1 billion Swansea Bay Tidal Lagoon will kick-start a
program of Chinese investment into UK infrastructure and the pursuit of a tidal
lagoon development program that could see British expertise and technology
exported to Asia. Tidal Lagoon Swansea Bay Plc (TLSB) has named China Harbour
Engineering Company Ltd, one of the world’s largest specialist marine
engineering contractors and investors, as its preferred bidder for a marine
works package that will include the construction of the six mile lagoon wall in
Swansea Bay. As well as committing to approximately 50 percent UK content for
the delivery of the package, CHEC has established a UK subsidiary company and
has set out its vision to pursue a UK infrastructure investment program over the
next decade. CHEC’s investment strategy will include a focus on further tidal
lagoon infrastructure projects in the UK.
Further to the work program on the Swansea Bay Tidal Lagoon, CHEC will sign a
Memorandum of Understanding with Tidal Lagoon Power Ltd, the project’s
developers, for the development of tidal lagoons in Asia, potentially opening a
major new export channel for British expertise and technology.
Tidal Lagoon (Swansea Bay) plc is a special purpose vehicle company established
specifically to construct, own and operate the world’s first tidal lagoon power
plant at Swansea Bay. The 320 MW installed capacity project, developed by Tidal
Lagoon Power Ltd, has a design life of 120 years and a net annual power output
of over 500 GWh; enough to meet the annual electricity requirement of over
155,000 homes, or over 90 percent of homes in the Swansea Bay area.
Lawrence Livermore National Laboratory Joins Growing CalCharge Coalition
Through the public-private consortium CalCharge, energy storage companies will
soon have unprecedented and streamlined access to three U.S. Department of
Energy national labs in the Bay Area — giving them a major competitive advantage
in the fast-growing battery industry.
CalCharge, which is designed to accelerate the development and deployment of
energy storage technologies, is welcoming Lawrence Livermore National Laboratory
(LLNL) as its newest partner member. LLNL joins Lawrence Berkeley National
Laboratory and SLAC National Accelerator Laboratory, completing CalCharge’s
trifecta of national labs in the Bay Area.
CalCharge and Livermore Lab are developing a standard cooperative research
agreement that would allow CalCharge member’s access to Livermore Lab’s
world-class scientists and facilities. The agreement, known as a Collaborative
Research and Development Agreement (CRADA), would complement Cal Charge CRADAs
already in place with Berkeley Lab and SLAC National Accelerator Laboratory. The
CRADA streamlines the process for industry looking to partner with the national
laboratories.
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 – June 26, 2015
UTILITY E-ALERT
#1229– June 26, 2015
Table of Contents
COAL – US
• LA Dept. of Water & Power ready to sell its Percentage in Arizona Coal-fired
Power Plant
• Safe Basin closure Update by Duke Energy
• Arizona Public Service settles Pollution Suit over Navajo Coal-fired Power
Plant
• Alabama Power reaches Coal-fired Power Plant Emissions Control Settlement
COAL – WORLD
• BHEL commissions 250 MW Unit of NTPC's Bongaigaon Power Plant in India
• Sharyn Gol JSC (Mongolia) announces the Commissioning of its Coal Wash Plant
and Execution of an Agreement to Export Washed Coal to South Korea
• Pakistan approves construction of 1,400 MW Coal-based Power Project in Thar
GAS/OIL – US
• Wisconsin Public Service seeking Air Permit to upgrade Two Units at Fox Energy
Center
GAS/OIL – WORLD
• AP Transco buys out GVK Power's Plant in Andhra Pradesh
• Lotte E&C wins US$230 Million Order from Indonesia
• Siemens supplying a Gas and Steam Turbine Package to Ciner Kazan Soda in
Turkey
NUCLEAR
• EDF granted Permission to operate Unit 3 of Tricastin Nuclear Power
• DOE issues remaining $1.8 Billion Nuclear Loan Guarantee for Plant Vogtle
BUSINESS
• Novinda names Michael Rosenberg New CEO
• Entergy New Orleans in line to get Low-cost Power from Arkansas Power Plant
• PetroVietnam acquires Chevron’s Assets in Vietnam
• Hearing set on 1,050 MW Gas-fired Power Plant for Salem Township, PA
• $20 Billion Market for Air Pollution Solutions
HOT TOPIC HOUR
• Hot Gas Filter Discussion will be continued on July 2
• “Total Solutions” is the Hot Topic Hour on August 6
• Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
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
July 2, 2015 Hot Gas Filtration More Information
July 23, 2015 Mercury Removal Options More Information
August 6, 2015 Gas Turbine Emission Control More Information
August 20, 2015 Total Solution Options More Information
Click here for the Subscriber and Power Plant or Cement Plant Owner/Operator
Registration Form
Click here for the Non-Subscribers Registration Form
----------
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