Let’s Talk at Valve World Houston next Wednesday or Thursday

Bob McIlvaine will be a speaker at 11:00 a.m. July 15 in the speakers corner located on the exhibit floor at Valve World in Houston.  He will be reviewing the market for gas turbine combined cycle valves.  This is the bi-annual premier event for the valve industry in North America. Two years ago McIlvaine took pictures of many of the exhibits and is displaying them at:

Bob delivered four speeches which can be viewed at:

Bob will be touring the stands on both exhibition days (July 15 and 16) and would welcome the opportunity to meet with you individually.  You can make arrangements to do so by emailing him at: rmcilvaine@mcilvainecompany.com or by cell phone at 847-226-2391.

Liquid and Air Filter Element Solution Provider’s Revenue Potential Will Exceed $32 Billion This Year

Sales of filter elements to separate particles from air, gases, water, oil and other liquids will exceed $28 billion in 2015. There is a potential for “Solutions Providers” to increase this market by $3.5 billion. This creates a potential for Solutions Providers of $32 billion.  This is the latest forecast in the McIlvaine Air/Gas/Water/Fluid Treatment and Control: World Markets. (www.mcilvainecompany.com)

Filter Element Revenues $ Millions 2013

Commercial and industrial filter users are spending more than necessary on their filtration purchases for two reasons:

• Filters do not last as long as they should, so more new purchases are necessary.
• The administrative and inventory management costs for purchasing small quantities of many different filter types are substantial.

Solutions Providers can help lengthen filter life and relieve the purchaser of the administration and inventory management.

Costs To End User Based On a Non-Solutions Filter Price Of 1

The filter manufacturer retains his margins but sells fewer filters because filter life is lengthened.  Distributors are virtually eliminated.  The Solutions Provider bears administrative and management costs.  The total cost to the purchaser is 9 or 10 percent less and yet the Solutions Provider obtains as much revenue as the filter producer.

Where the filter is being used in a critical process, the true filter cost can easily be twice the filter purchase cost. Lost production and equipment maintenance can be very costly.  For these applications it is important that the Solutions Provider thoroughly understand the process. This knowledge can be translated into margins above 50 percent and very high returns on capital.

For more information on Air/Gas/Water/Fluid Treatment and Control: World Markets, click on: http://home.mcilvainecompany.com/index.php/markets/27-water/445-n064-air-gas-water-fluid-treatment

Change Environmental Regulatory Policy to Foster R&D and Cost Effectiveness

The recent Supreme Court ruling in the U.S. remanding the air toxic rules due to lack of cost consideration is a wakeup call.  The message is that the whole system is flawed.  It discourages rather than encourages R&D. Invariably the cost estimates prior to regulation turn out to be wrong. So regulations are rarely cost-effective.

EPA recognized that setting arbitrary limits is not cost-effective and so created a “Cap and Trade” system. The trade aspect of this policy was sound, but the cap aspect merely duplicated the problems with conventional regulations where there is no incentive to do better than is required.

All that is needed is to move from “Cap and Trade” to “Create and Trade.”  Those power plants ranking in the lower 50 percent would pay fees to be divided among those in the top 50 percent.  The payments and receipts would be based on ranking.  These payments provide great incentive for the industry to “create” cost-effective solutions.

Mercury reduction would be a very good demonstration of the power of “Create and Trade.”  There are new mercury removal technologies which are much more cost-effective than the ones available at the time of the cost determination.  It was concluded that to move from 85 percent mercury reduction to 95 percent reduction would cost $30,000/lb.  Now the cost may be as low as $1,000/lb.   If the “Create and Trade” rule stated that any company removing more than 85 percent of the mercury would be paid $15,000/lb. for each additional pound removed, there would be a great incentive for power plants to install the most efficient equipment. 

Ultimately the most cost-effective technologies would be installed.  Initially the bar would be set at 85 percent removal but, if it turns out that some companies are making huge profits by obtaining 95 percent efficiency, then it would be time to raise the bar to 90 percent.

There is almost no supplier generated air pollution control research in the U.S.  The creation of a back-end mercury module for high efficiency is a fortuitous anomaly.  The creation of a “Create and Trade” system would generate many new cost-effective technologies. It would also make the U.S. again the center of air pollution technology.  This is a position it is ceding to China presently.

The concept is equally valid for the upcoming EPA rules on CO₂ emissions.  Coal-fired power plants can make effective reductions in CO₂ emissions by increasing efficiency.  So there are ways to make cost-effective reductions in CO₂ emissions per unit of power produced.  Rather than set arbitrary limits a “Create and Trade” system would encourage R&D and use of the most cost-effective technologies.  The national strategy is to continue to operate some 200,000 MW of coal-fired power plants. An incentive program to increase efficiency would result in significant reduction of CO₂ emissions and be positive rather than negative for the economy.

For more information on this subject click on 5AB Air Pollution Management.

Renewable Energy Briefs

Pattern Development Completes C$393 Million Financing of 180 MW Meikle Wind Project in British Columbia

Pattern Energy Group LP announced the completion of C$393 million in financing of its 180 megawatt (MW) Meikle Wind power project located in British Columbia, approximately 33 km north of Tumbler Ridge. Meikle Wind, which is expected to commence commercial operation in late 2016, is the largest wind power project in British Columbia with the capacity to generate clean energy for up to 54,000 homes in the province.

The Meikle Wind project is utilizing 61 GE wind turbines. The project has a 25-year power purchase agreement with BC Hydro. The Meikle Wind project will employ approximately 275 skilled workers on-site at the peak of construction activity and create up to nine permanent positions once operational, in addition to the use of local subcontractors.

SunEdison Inaugurates 50 MW of Solar in Central India

SunEdison, Inc. has announced the inauguration of the Dammakhedi 50-megawatt (MW) DC solar power plant in the Indian state of Madhya Pradesh.

Dammakhedi is the first solar power plant in the state to use single axis tracker technology to maximize energy production. The project created more than one thousand jobs during construction, and was completed two months ahead of schedule.

Dammakhedi is connected to the Madhya Pradesh state grid, delivering power to the central government's Solar Energy Corporation of India (SECI). It is among the first projects to be commissioned under the second phase of the Jawaharlal Nehru National Solar Mission (JNNSM), an ecologically sustainable growth initiative by the State and National Governments of India.

Operation and maintenance of the solar power plant will be performed by SunEdison Services, which provides global 24/7 asset management, monitoring and reporting services.

B&W Celebrates Grand Opening of Advanced Waste to Energy Plant in West Palm Beach

The Babcock & Wilcox Company (B&W) is pleased to announce the grand opening of the Solid Waste Authority (SWA) of Palm Beach County’s advanced waste-to-energy facility, the Palm Beach Renewable Energy Facility 2 (PBREF2).

The facility, owned by the SWA and located in West Palm Beach, FL, was designed, manufactured and constructed by a consortium of Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) and KBR, Inc.

B&W PGG designed and manufactured the plant’s three mass-burn, waste-to-energy boilers, capable of generating up to 95 megawatts of electricity, and its environmental control system. The plant features DynaGrate® air-cooled and water-cooled combustion grates designed by B&W Vølund and will be operated under a 20 year agreement by B&W PGG’s subsidiary, Palm Beach Resource Recovery Corporation, which has operated the adjacent PBREF 1 since 1989.

Renewable Energy from the Ocean One Step Closer with Completion of Biowave Construction

Ocean energy company, BioPower Systems (BPS), has completed the construction and onshore testing of a 250 kW bioWAVE pilot demonstration unit.

The project is supported by an AUD11 million grant from the Australian Renewable Energy Agency (ARENA), a AUD5 million grant from the Victorian Government and AUD5 million equity from BPS. 

The unique bioWAVE comprises a 26-meter tall oscillating structure that sways back-and-forth beneath the ocean swell, capturing energy from the waves and converting it into electricity fed into the grid via an undersea cable.

The structure is scheduled for deployment at Port Fairy in Victoria Australia later this year. The data collected from the project, combined with the experience gained, is expected to help drive down the cost of wave energy, and contribute to further development of the bioWAVE towards commercial production.

NRG and Ice Energy Partner for Southern California Utility Storage Projects

NRG Energy, Inc. and Ice Energy, have partnered to help reduce California’s peak energy demand through an innovative energy storage solution.

NRG and Ice Energy will meet the recently awarded 20 year long-term contracts to provide 25.6 megawatts of behind-the-meter energy storage using Ice Energy’s proprietary Ice Bear technology for Southern California Edison (SCE). NRG and Ice Energy will deliver the peak energy reductions associated with these contracts. Financial terms of the agreement were not disclosed.

Subject to final approval from the California Public Utilities Commission, approximately 1,800 Ice Bear units will be installed in Orange County beginning in early 2016. Attaching to one or more standard 5-20 ton rooftop commercial AC units, the Ice Bear provides a unique solution to the problem of peak load management, a key part of creating power grids which are more efficient, reliable, and effectively integrate renewables. The Ice Bears freeze ice at night when demand for power is low and capacity is abundant, and then use stored ice during the day to provide cooling instead of power-intensive AC compressors.

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 – July 2, 2015

UTILITY E-ALERT

#1230– July 2, 2015

Table of Contents

COAL – US

• Supreme Court Blocks President Obama’s Limits on Power Plants

COAL – WORLD

• MET announces Licensee WFGD Award in China 

GAS/OIL – US

• Texas to pump Gas to Mexico
• Dominion seeks approval for a $1.3 Billion Greensville Power Plant
• Skanska Joint Venture builds Gas-fired Power Plant in Wawayanda, New York 

GAS/OIL – WORLD

• Torishima receives Order for Eight Boiler Recirculation Pumps in Djelfa, Algeria
• Nigeria's Forte Oil says Siemens to upgrade Gas-fired Power Plant
• Kansai Electric acquires First Power Plant in greater Tokyo
• Black & Veatch to modernize Turkey’s Oldest Gas-fired Power Plant
• APR Energy signs New Contract to Supply Gas Turbine Power for Egyptian Industrial Plant

NUCLEAR

• CNNC plans to bid for Slovakian Nuclear Power Plant
• Canada and UK sign MOU to develop Nuclear Energy Projects
• Day & Zimmerman awarded Nuclear Reactor Fleet Maintenance Contracts by Southern Nuclear

BUSINESS

• European Regulators approve Siemens’ $6.6 Billion acquisition of Dresser-Rand
• MAN Diesel & Turbo acquires MaxWatt Turbines
• Ares EIF sells Keys Energy Center to PSEG Power
• Wood Group acquires Beta Machinery Analysis
• Supreme Court Mercury Ruling will have uneven impact on the Pollution Control Industry
• Change Environmental Regulatory Policy to Foster R&D and Cost Effectiveness

HOT TOPIC HOUR

• Hot Gas Filter Discussion Hot Topic Hour July 2
• 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

“Mercury Removal Options” is the “Hot Topic Hour” on July 23, 2015 at 10:00 a.m. CST

The latest developments relative to regulations, implementation and technology for mercury control will be discussed in a 90-minute session. The basis for the discussion will be the: Mercury Reduction Route Map and Summary
http://home.mcilvainecompany.com/images/Mercury_Reduction_Route_Map_and_Summary.pdf

We will continue to expand this summary and to link to new articles and case histories on a custom website.  We are seeking contributions from the industry.  Please contact us and we can coordinate your contribution. (rmcilvaine@mcilvainecompany.com)

The Supreme Court decision last month will be analyzed and the remand requirement to assess costs used as the basis for a review of the McIlvaine Mercury Decisions System.  Efficiency is a major factor in cost determination. It is not a question of cost per pound, it is a question of the cost for the last removal increment required.

Whereas the older technology resulted in costs per pound removed which were ten times higher for efficiency increases above 80 percent than for less efficiency, the new technologies are proving cost-effective at high levels of efficiency. One such example is the Gore module.

There are many issues and options which vary by industry and geography.  All are included in a comprehensive database which is part of Power Plant Air Quality Decisions. 

Click here to view schedule and register

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.

Click here for the Subscriber and Power Plant or Cement Plant Owner/Operator Registration Form

Click here for the Non-Subscribers Registration Form

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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