Keep Adapting to Offset Shrinking Coal Market in the U.S.

The coal-fired power plant activity is booming in Asia and Africa but slow in the U.S.  How do companies which have relied on the U.S. coal-fired market adjust?

1.     Pursue the coal-fired O&M market in the U.S:   There are 220,000 MW of existing U.S. coal-fired power plants which will be making disproportionately large investments just to keep these 50 year old facilities running for the next 20 or 30 years.  There are four drivers:

 

a.      It costs more to keep a very old power plant in operation

b.     Solid waste, wastewater effluent and air pollution regulations will continue to impact spending

c.      Power plants are losing their experienced personnel and are receptive to outsourcing

d.     There are innovative ways to improve operations by:

                                                    i.     Improving efficiency

1.     Extract more heat from the flue gas

2.     Automate operations

3.     Use treated municipal wastewater

4.     Burn sewage sludge

5.     Burn cheaper coals

                                                  ii.     Creating salable byproducts

1.     Steam for ethanol and other cogeneration recipients

2.     Hydrochloric acid

3.     Rare earths (one step process for making acid and then using it to leach the valuable metals)

4.     Gasify municipal waste and receive tipping fees

 

2.     Pursue the booming industrial market in the U.S.:  There are new chemical, petrochemical and steel plants in planning and construction.  Industrial boilers at existing power plants still need to meet the MACT rules.

3.     Develop products for gas turbine combined cycle power plants.

4.     Pursue the oil and gas markets in the U.S.

5.     Pursue offshore markets

a.      China is more receptive to some new technologies than ever before due to the very stringent regulations and pressures from the citizens and government due to smog

b.     Coal gasification for the purpose of making chemicals and synthetic natural gas requires much of the same equipment needed by coal-fired boilers

                                                    i.     Big market is China

                                                  ii.     Korea, Ukraine and India are all moving forward with coal conversion projects

There are ways for small companies without the international reach to be successful.  However, they need to have products which are superior to those offered locally in other countries.  Alternatively, they need to have the application and process expertise to provide a better solution. 

This expertise is instantly transferable around the globe.  For example, a company can concentrate just on emission problems of the bauxite industry.   The market is not large enough to warrant the investment in expertise and technology by the large companies. However, it is sufficient to sustain a small company.  There are similar examples in many other industries which have the following characteristics:

·       Complex and difficult solutions required

·       Market is distributed around the globe

·       Market is large enough but not so large as to attract the big international companies

The following McIlvaine services can help companies adapt:

42EI Utility Tracking System

42EIC Chinese Utility Plans

Industrial Air Plants and Projects

N021 World Fabric Filter and Element Market

N008 Scrubber/Adsorber/Biofilter World Markets

N049 Oil, Gas, Shale and Refining Markets and Projects

Industrial Valve Revenues Will Reach $68 Billion This Year

Industrial valve sales will be $68.4 billion in 2015 according to the latest forecasts in N028 Industrial Valves: World Market published by the McIlvaine Company.  (www.mcilvainecompany.com)

The McIlvaine forecasts are displayed in constant 2010 dollars.  The forecast for 2015 is $58 billion with a 1.18 multiplier to account for inflation. McIlvaine forecasts are based on end use. These are compared to analyses displayed at the recent Industrial Valve Summit in Italy.

Country

McIlvaine point-of-use revenues in 2015

$ millions

Confindusria Bergamo estimates of exports $ millions

China

13,500

8,200

Italy

1,200

7,800

USA

11,900

7,500

Germany

2,100

6,500

Japan

3,200

2,700

These figures show that some of the EU countries are major exporters of valves with Italy being the leader. China and the U.S. are large exporters but even larger consumers. Robert McIlvaine, president of the McIlviane Company participated in a global sourcing panel discussion along with representatives of several of the major oil companies. The main message in the McIlvaine presentation is that exporters can enhance their position by providing total solutions.  He used the example of Pentair which provides valve systems to deliver compressed air in a unique manner to maximize cleaning of filter elements.

The company has the engineering expertise to deliver complete pulse jet cleaning solutions and takes responsibility for valve sizing and configurations. This total solutions approach provides maximum value to the purchaser and also increases the revenues and profits of the supplier. Several of the other panelists and attendees expressed similar opinions relative to total solutions.

The key to success is understanding the processes.  This has not been a traditional skill of valve companies but is one which they would be well served to pursue.  For those companies who want to carve out an international presence, the knowledge and products to uniquely make the process better are very good ways to increase penetration throughout the world.

A major theme at the Industrial Valve Summit was the loss of knowledge as many of the experts within the consulting companies and end users are retiring.  This makes the process knowledge even more important. McIlvaine has decision programs to provide this process and product knowledge. One is for coal-fired power plants and the other for gas turbine combined cycle power plants.

The conference included a number of unique and invaluable papers.  They can be purchased from the conference organizers for $325.  Contact: http://www.industrialvalvesummit.com/

For more information on the valve market, click on: N028 Industrial Valves: World Market

For the program with process knowledge on valves for coal-fired power plants, click on: 44I Power Plant Air Quality Decisions 

For the similar program on gas turbine combined cycle plants, click on: Gas Turbine and Combined Cycle Decisions

Renewable Energy Briefs

Elecnor Wins Construction Contract for 185 MW Wind Farm in Chile

Spanish firm Elecnor SA announced it has won a contract worth U.S. $81 million (€71.6 million) for the construction of a 184.8-MW wind farm for Latin American Power (LAP) in Chile.

Elecnor will be responsible for the balance of plant (BOP), as well as engineering, supply and construction of transmission facilities, including 84 km (52 miles) of 220-kV lines, the San Juan substation and the grid connection.

The San Juan wind project comprises 56 turbines of 3.3 MW each, to be installed in the Atacama region, in the coastal area south of Freirina town.

U.S. renewables company SunEdison Inc. has recently announced the signing of a definitive agreement to acquire LAP, including a 46-MW operating wind plant in Chile, 73 MW of operating hydropower in Peru, 204 MW under construction in Chile and nearly 660 MW of development-stage wind, solar and hydropower projects in the same countries.

MPOWERED Delivers Over 2,000 Solar Lights to Victims of Nepal Earthquake

MPOWERD, Inc., the maker of Luci inflatable solar lights, announced that they have delivered over 2,000 lights to victims of the deadly Nepal earthquake.

Following the disaster, MPOWERD, a Certified B Corp, immediately mobilized a large-scale donation of 1,200 lights and began offering special discounted pricing to individuals, groups and charities distributing the lights in Nepal.

Luci lights are a safe and sustainable alternative to harmful kerosene lamps often used in energy challenged countries and communities recovering from disaster. Luci lights are now available in over 80 countries as well as in 700 retailers in the U.S., where the company leverages high volume retail sales to lower costs and sell affordably into developing markets.

Viaspace Conducting Engineering Plan for Giant King® Grass Biogas Power Plant in Papua New Guinea

Viaspace Inc. announced that Viaspace has been engaged by Clean Energy Solutions Pacific (CES) to provide engineering and design work for a 2 MW biogas power plant fueled by Giant King Grass. CES, based in Salt Lake City, UT, is an independent power producer focused on developing power for frontier and emerging markets. CES has extensive experience in project development and management, engineering and construction of power plants.

The CES project located in Papua New Guinea (PNG) is to own and operate a biogas power plant and Giant King Grass plantation that delivers reliable, 24/7 electricity to the grid to meet the customer demand profile, under a power purchase agreement from the government electricity company.

GE Delivers Sophisticated Electrical Conversion System for One of the World’s First Tidal Arrays

2015 is turning out to be an exciting year for tidal energy as one of the world’s first tidal arrays near Paimpol-Bréhat, France, will be deployed. Delivering a new generation of renewable energy, the project will harness the predictable power of ocean tides to generate electricity.

 All eyes in the energy world are turned to the small French fishing town of Ploubazlanec in Brittany, where development of the tidal demonstrator farm kicked off under the leadership of Electricité de France S.A. (EDF). GE Power Conversion has been in partnership with EDF since the very beginning and is now on track for finalization of the electrical conversion system, due for summer 2015. GE’s Belfort team is working diligently to perform relevant tests before installing the system both subsea and onshore.

Two OpenHydro 16-meter turbines will be connected to a common subsea converter that will transform the current to high voltage direct current (HVDC) to provide 1MW of electricity. The power will be transmitted to the onshore station and eventually feed into the electrical grid. GE Power Conversion is undertaking development of the subsea converter as well as the onshore station.

The size of the equipment is astonishing – the enclosure for the subsea converter is 9 meters in length, 5 meters in width and 4 meters in height – although still tiny compared to the tidal turbine which measures 16 meters in diameter, provided by OpenHydro, part of the DCNS Group.

The converter will be delivered to Brest and be installed by DCNS on the specific foundation designed by OpenHydro, which supports both the convertor and the 16-meter turbine.

Tesla and Gaelectric to Introduce Tesla Battery Storage to Ireland

Gaelectric and Tesla announced the purchase and planned deployment of Tesla Energy's first battery power utility-scale project in Ireland. The two companies are collaborating to develop a pipeline of multiple battery projects to build new transmission system services required to facilitate the integration of renewable energy sources such as solar and wind. The initial demonstration project, 1-MW in size, is targeted for deployment in 2016.

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 –May 29, 2015

UTILITY E-ALERT

#1225 – May 29, 2015

Table of Contents

COAL – US

 

 

COAL – WORLD

 

 

GAS/OIL – US

 

GAS/OIL – WORLD

 

NUCLEAR

 

 

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

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    

June 18, 2015

SO3 Removal Options

More Information

July 2, 2015

Hot Gas Filtration

More Information

June 23, 2015

Mercury Removal 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