Role of Renewable Energy in U.S. and World is Hot Topic Hour on May 17, 2012
Various reports by governmental and private institutions have concluded that
renewable energy resources such as solar, wind, hydropower, geothermal, tidal
and biomass including landfill gas, along with significant improvements in the
efficiency of electricity production and delivery systems such as smart grids,
can provide up to 40 to 50 percent of electric power needs in the U.S. by 2025
to 2030. All of these renewable sources are being employed today in the U.S. to
differing extents with different success rates. Renewable energy currently
accounts for a bit over eight percent of total generated electricity. However,
after rising rapidly over the past few years, investment in renewable energy has
slowed significantly this year.
This slowdown may be caused by the expiration on Dec. 31st of the U.S. Treasury
grant program offering as much as 30 percent of development and construction
costs for renewable energy plants and expectations that the Production Tax
Credit, which grants an incentive worth 2.2 cents per kilowatt-hour of wind
power will not be renewed when it ends this December. But it may also be the
result of the recently proposed and enacted air and water environmental
regulations affecting the utility industry. The industry may just be on hold
while they study the entire situation and decide what power plants they will
shut down and how they will replace the electricity required to meet their
demand.
The following speakers will discuss the various renewable energy technologies
and address the issues related to the use of renewable sources for power
generation. They will address these and other questions:
• What are the regulatory, environmental and/or technical impediments to
implementing the various forms of renewable energy now?
• What business models are developing and how are utilities planning to utilize
renewable energy sources?
• What are some of the best examples of the use of renewable energy for power
generation both in the U.S. and abroad?
• Who are the key players in the industry and how are they developing the
market?
• How will the various technologies develop in the next ten years and will there
be a clear winner?
• Which innovations in technologies will contribute to decreasing the cost for
renewable energy?
• What are the options for wind and solar energy storage?
Paula Mints, Director Energy and Principal Analyst for the Solar Services
Program at Navigant, will discuss the current state of the dynamic, volatile
global solar industry including the new low incentive reality it faces.
Thomas (Tom) J. Maestri, Director of Renewable Energy Programs at Synagro
Technologies, Inc, will discuss “The Role of Bio-solids in Renewable Energy.”
Bio-solids, the residual material generated day-in and day-out as a natural
byproduct of wastewater treatment can and should play a valuable role in the
overall effort to maximize renewable energy production both in the U.S. and
throughout the world. With an organic content averaging approximately 75
percent, bio-solids can be anaerobically digested to produce methane or dried
and used directly as a fuel source. In addition, R&D efforts are underway to
expand the use of bio-solids for gasification applications. His presentation
will outline the common uses of bio-solids in renewable energy as well as offer
the advantages and disadvantages of each.
Ryan Pletka, Director of Renewable Energy Strategy at Black & Veatch Energy
To register for the “Hot Topic Hour” on Thursday, May 17 at 10:00 a.m. (Central
time) click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
Electric Power Highlights will be Hot Topic Hour at 10:00 a.m. May 18
The Electric Power conference next week will be rich in intelligence about all
the issues which are facing the industry. McIlvaine will be asking speakers and
exhibitors to provide their opinions about the future. Here are the questions
which we will address:
• How many coal-fired power plants will shut down rather than add new air toxic
controls?
• Is dry injection a viable long-range option or just for power plants with a
few years remaining life?
• Will state regulations relative to ambient air quality trump MATS?
• What will be the price of natural gas over the next 15 years not just next
year?
• What mercury control technologies are going to prevail?
• With a high efficiency approach such as REACT, will the BACT change?
• Why not adopt inhibited oxidation wet lime with chemical fixing of the sludge
to avoid all the wastewater metal removal problems?
• What will be the end result relative to ash disposal or sale, ponds and
wastewater cleanup? Does the roaster concept expand the options?
• Are the high temperature catalysts the best option for combined cycle SCR?
• Can you accurately measure at the levels mandated by the new NSPS?
• Is co-location of municipal wastewater treatment, waste-to-energy and
coal-fired power plants a winner?
• What are the byproduct opportunities from coal, e.g. sulfuric acid,
fertilizer, metal extraction, etc?
• What are the biggest uncertainties facing fossil-fired power plant operators?
We will be gathering answers to these questions at the show and will discuss
those answers with participants.
To register on Friday, May 18 at 10:00 a.m. (Central time) click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
McIlvaine Hot Topic Hour Registration
On Thursday at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting
on important energy and pollution control subjects. Power webinars are free for
subscribers to either Power Plant Air Quality Decisions or Utility Environmental
Upgrade Tracking System. The cost is $125.00 for non-subscribers. Market
Intelligence webinars are free to McIlvaine market report subscribers and are
$400.00 for non-subscribers.
DATE Non-Subscribers Cost SUBJECT Webinar Type
May 10, 2012 $400.00 $330 Billion Market for Air/Gas/Water/Liquid/Flow and
Treatment (high growth segments plus regulatory, technology, application, and
market drivers) Market Intelligence
May 17, 2012 $125.00 Role of Renewable Energy in U.S. and World Power
May 18, 2012 $125.00 Electric Power Highlights Power
May 24, 2012 $125.00 Status of Carbon Capture Programs and Technology Power
May 31, 2012 $400.00 Air Pollution Control Markets (geographic trends,
regulatory developments, competition, technology developments) Market
Intelligence
June 7, 2012 $125.00 Dry Sorbent Injection and Material Handling in Coal-fired
Power Plants Plants Power
June 14, 2012 $125.00 Report from Power Gen Europe (update on regulations,
speaker and exhibitor highlights) Power
June 21, 2012 $400.00 Pumps and Valves (impacts of mergers, new markets, market
drivers, forecasts) Market Intelligence
June 28, 2012 $125.00 Greenhouse Gas Strategies for Coal-fired Plant Operators
Power
July 12, 2012 $125.00 CFB Technology and Clean Coal
(Update on CFB Reactor Technology) Power
July 19, 2012 $400.00 Future for Coal, Gas, Nuclear and Renewables (forecasts by
region and discussion of market drivers and regulatory constraints) Market
Intelligence
July 26, 2012 $125.00 Beneficial Byproducts of Coal Combustion and Gasification
Power
August 2, 2012 $125.00 Mercury Control and Removal Status and Cost Power
August 9, 2012 $400.00 Filter Media (forecasts and market drivers for media used
in air, gas, liquid, fluid applications both mobile and stationary) Market
Intelligence
August 16, 2012 $125.00 Report from Coal-gen (highlights of speeches and
exhibitions) Power
August 23, 2012 $125.00 Report from Mega Symposium (highlights of speeches and
exhibitions at this important air pollution conference) Power
August 30, 2012 $400.00 Instrumentation for Air, Gas, Water, Liquids (forecasts
, market shares, growth segments)
Here are the Headlines for the May 4, 2012 – Utility E-Alert
UTILITY E-ALERT
#1073 – May 4, 2012
Table of Contents
COAL – US
B&W PGG to supply Spray Dry System and Baghouse to Columbia 1 and 2
Cap on Costs for 618 Edwardsport IGCC Project
Illinois EPA issues Taylorville Energy Center its Final Air Permit
Partial Disapproval of Utah’s Regional Haze Plan
First Energy explains to PSC Reasons for Closure of Albright, Rivesville and
Willow Island
PJM determines FirstEnergy Plants cannot close until 2015
Midwest Generation to close Fisk and Crawford Power Plants Early
Sierra Club sues EPA over Oklahoma Power Plants
America’s 10 most Polluted Cities, ALA Report 2012
COAL – WORLD
Madhucon Projects signs Power Purchase Agreement for 300 MW (Dawas (Indonesia)
Nigeria/German Firm to construct 350 MW Power Plant in Gombe State, Nigeria
GAS / OIL – US
Calpine to add Capacity at Deer Park and Channel in Texas
B. L. England to convert to Natural Gas-firing
PSC approves 640 MW Cane Run Power Plant
GAS / OIL – WORLD
GE Consortium to develop 500 MW Combined Cycle Power Project in Darwin,
Australia
CO2
GreenGen Starts Up Gasifier at China’s First Near-Zero-Emission Coal-Fired
Power Plant
Oxyfiring Successfully Begins at Australia’s Callide Oxyfuel/CCS Project
TransAlta Cancels $1.4 Billion CCS Project in Alberta
SaskPower Reaffirms Commitment to $1.2 Billion CCS Project in Saskatchewan
Minnesota Start-Up to Create Renewable Energy with Captured CO2
NUCLEAR
Jordan shortlists Mitsubishi/Areva and Atomstroyexport for Nuclear Power Plant
Cost of Levy County Nuclear Power Plant rises
Canada’s Natural Resources Minister OKs Ontario Power’s Darlington Nuclear
Power Plant Expansion
HOT TOPIC HOUR
“Flyash Pond and Wastewater Treatment Issues" was the Hot Topic Hour on
Thursday, May 3 and Friday, May 4, 2012
Where are the High Growth Air and Water Opportunities? Find Out on May 10!
Upcoming Hot Topic Hours
For more information on the Utility Environmental Upgrade Tracking System, click
on: http://www.mcilvainecompany.com/brochures/energy.html#42ei.
Large Players in Air and Water Need to Follow Inorganic Growth with Organic
Many of the larger companies in the air and water equipment and service
industries have grown substantially due to inorganic growth. Acquisitions boost
revenues and total profits. The challenge is now to increase earnings as a
percent of sales. This can be best done with prioritized organic growth. Details
on a program to achieve this growth are detailed by McIlvaine Company in its
comprehensive Air/Gas/Water/Fluid Treatment and Control: World Markets.
There are two categories of organic growth:
Low investment, low risk, attractive ROI
• High investment, high risk, large ROI
Low investment, low risk, attractive ROI
This category should be the first priority because of the low investment and
risk. There are two ways to accomplish this type of organic growth without
creating new products.
Expand the existing product line into new applications and industries
• Achieve greater geographical penetration with the existing product line
New applications and industries: The wave of mergers has set up very attractive
opportunities for large players to expand product lines into new industries.
Xylem has a great penetration with its pumps in municipal wastewater treatment
plants around the world. The recent acquisition of YSI will allow it to pursue
the municipal market for monitoring and instrumentation. Pentair and Tyco have
complimentary industry strengths and product lines, so the merged company can
leverage this synergy.
Colfax and Howden can combine the complimentary liquid and gas handling
equipment with unique industry strengths. “This is a transformational
acquisition for Colfax that accelerates our growth strategy, enhances our
business profile and continues our journey to becoming a premier global
enterprise," said Mitch Rales, Colfax Chairman.
GE has acquired Dresser and can leverage many of the synergies between turbines
and valves in power and oil and gas industries. “GE and Dresser are a natural
fit together. We share a commitment to technology and innovation and we have
many common customers in the energy space,” said John Krenicki, vice chairman of
GE and president and CEO of GE Energy in February 2011 when the deal was
completed.
The achievement of these synergies has proven difficult for acquirers in the
past. One of the reasons is the natural resistance among divisions to share
knowledge and therefore power. Business experts say that the secret is creating
a collaborative environment. They further recommend that a third party be
utilized to help engender this collaborative atmosphere.
Expanding geographic reach: Most large international companies are not achieving
the same high market share in Asia which they enjoy in other areas. Here are
some examples:
Company Asia/Pacific % Total Revenue
Xylem 12
Flowserve 18
Tyco/Pentair 10
Emerson Process 24
Cameron 5
Product-World Market
Pumps 40
Valves 39
Cartridges 33
Air Pollution Control Equipment 60
Asia is the largest current market and the fastest growing for almost all
segments in air and water. The typical international player could substantially
increase revenues by increasing the Asian market share.
Large international players face two big challenges:
Language nuances
• Validating lowest life cycle cost claims
Most companies have no trouble reading or communicating in English. However, the
specific terms which distinguish one product from the others are often not
translated correctly. McIlvaine has developed a “Decisive Classification System”
in English and Chinese to overcome this problem.
A second challenge is to convince the purchasers of the lower life cycle cost of
the international product as opposed to the local one with the lower initial
cost. Thanks to all the available digital communications this challenge can be
effectively addressed.
High investment, high risk, large ROI
The biggest potential increases in profits come from developing proprietary
products and services with lower life cycle costs. This can be accomplished with
both product and application research. Companies should be pursuing more
fundamental research to develop products without a pre-determined market in
mind. At the same time, they should be tailoring existing products to developing
markets. Furthermore, the big players can be pro-active and help create new
markets.
Too little is spent for R&D by the companies serving the air and water markets.
Industry 2012 Expenditure
$ Billions % of Total Research Intensity R&D/Revenues %
Machinery 10 03.33 4
Pharmaceuticals 45 15.00 13
Computer/Electronics 60 20.00 11
Information 45 15.00 4.5
Other 140 46.66 4.5
Total 300 100.00 6
Industrial equipment providers including those in the air and water segments are
spending very little on basic research and not much more on applied research.
The machinery manufacturers as a group account for just over 4 percent of
research and development (R&D) in the U.S. By contrast, the pharmaceutical,
computer/electronics and information groups account for 50 percent of all
research. The pharmaceutical industry spends 13 percent of revenues on R&D. The
true R&D for the air and water industry is less than 2 percent. Furthermore, air
and water R&D tends to be government funded even though companies such as ADA-ES
are actually doing the work and are being remunerated to do so.
The large players in air and water can justify increased R&D based on the
expanded inorganic revenue base. There are numerous examples of developments
which have created very large and profitable revenues streams, e.g. Goretex
(organic) or Filtrete (inorganic).
There is a larger and bigger profit potential in developing whole systems.
McIlvaine has identified the co-location of power plants and municipal
wastewater treatment plants as one initiative which would create high potential
for profitability.
For more information on: Air/Gas/Water/Fluid Treatment and Control: World
Markets, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=71
NOx Control Equipment and Consumables Revenues Will be $6.8 billion This Year
Revenues for suppliers of stationary NOx control systems, catalysts and reagents
will exceed $6.8 billion in 2012. The biggest markets for new systems are in
Asia whereas the greatest purchases of catalysts and reagents are in the U.S.
and Europe. This is the conclusion reached in the McIlvaine report, NOx Control
World Markets. (www.mcilvainecompany.com)
Stationary NOx Control Revenues 2012
($ Millions)
SCR systems 4,300
Catalyst new 1,200
Catalyst regenerated 400
Reagents 900
Total 6,800
China has already passed all other countries except the U.S. in terms of
investment in selective catalytic reduction (SCR) systems. At the rate it is
installing additional units it will surpass the U.S. in 2014. However, since
catalyst life is more than three years, it will be 2020 before China is also the
largest catalyst consumer.
The largest investment in NOx control is for SCR for coal-fired power plants.
Gas turbines also utilize SCR but there are fewer MW of capacity equipped with
SCR. Also, the cost is lower due to the spacing in the body of the catalyst.
Because of the dust in coal-fired power plants, the catalyst has larger openings
and is more expensive.
The European and U.S. experience relative to catalyst life is somewhat
different. Replacement is more frequent in the U.S. due to poisoning and
plugging. However, a substantial industry has been created to renovate or
regenerate used catalyst.
There are some surprises relative to reagent choices. The low cost but
potentially less safe anhydrous ammonia is the most popular choice in Europe.
While it is also popular in the U.S., there have been a number of plants who
have opted for aqueous ammonia. Another U.S. development is the purchase of
solid urea which is converted to ammonia onsite. China has also favored this
more costly but safer approach.
Catalysts are being re-designed to address two pollutants in addition to NOx.
The older catalysts convert 1 percent of the SO2 in the flue gas to SO3, which
can result in “blue haze” at the stack. This harmful conversion can be reduced
by different catalyst formulations. Catalysts also have the potential to oxidize
mercury to a soluble form for downstream capture in wet scrubbers. Many
purchasers are willing to pay considerably more for their catalysts in order to
minimize all three pollutant emissions.
In addition to the power industry there are a number of other smaller
applications for stationary NOx control units. Cement plants are major NOx
emitters. Many waste-to-energy plants are fitted with either selective catalytic
reduction or selective non–catalytic reduction systems.
For more information on NOx Control World Markets, click on:
http://www.mcilvainecompany.com/brochures/air.html#n035.
School Districts Turn to Solar
The installation of solar panels has provided cost savings to school districts
around the world. McIlvaine tracks these installations in Renewable Energy
Projects and Update.
AUO Acquires 9 MW Solar Power Project in Pennsylvania School District
AU Optronics announced that it is ready to provide its customers with U.S.-made
solar solutions. The progress enriches AUO’s global solar module capacity to
span across Europe, America, and Asia. It also makes AUO one of the few
international suppliers capable of offering U.S.-made solar solutions. Further
development in the U.S. market has been marked by the acquisition of a 9 MW
Solar Power Project in the Pennsylvania School District, which will be the
largest solar power plant in Pennsylvania as well as one of the largest school
district projects nationwide. AUO will continue to provide top-notch customized
solar solutions to the U.S. customers.
Arizona’s Buckeye Union High School District Dedicates 4.29 MW Solar Generation
Project from Constellation Energy
Constellation Energy and the Buckeye Union High School District, announced the
completion of an aggregate 4.29 MW (DC) solar generation project.
Baltimore-based Constellation Energy’s retail business owns and will maintain
the solar power systems. In return, the school district will purchase and
receive all of the electricity generated by the solar panels at a fixed rate
from Constellation Energy under a 25-year solar services agreement.
Located at three sites – Buckeye Union High School and Youngker High School in
Buckeye, AZ and Estrella Foothills High School in Goodyear, AZ – the
installations collectively generate enough electricity to power the three high
schools, meeting up to 70 percent of the school district’s electricity needs.
The installations, which were developed by GV Enterprises and REgeneration
Finance and built by CORE Construction, were facilitated, in part, by the
Arizona Corporation Commission-approved APS Renewable Energy Incentive Program.
This program offers financial incentives, covering up to 40 percent of the
installation costs, to customers who add renewable energy systems to their homes
or businesses.
The solar power systems are comprised of approximately 15,468 photovoltaic
panels, located on 29 carport rooftop structures and on two ground-mounted
installations. The project is expected to generate more than 7 million kWh of
electricity per year.
PowerPlay Solar Commissions 2 MW Solar Field at Berkshire School in Sheffield,
MA
PowerPlay Solar Development, an integrated solar development and finance company
based in Ridgefield, CT announced the commissioning and commencement of
operation of the 2 MW, 9 acre photovoltaic solar plant developed by the company
at Berkshire School in Sheffield, MA. The project is currently the largest
operating solar facility of its kind at any school or college in New England.
PowerPlay Solar Development designed and constructed the project in
collaboration with Spire Solar Systems, a solar systems design builder based in
Bedford, MA. The Berkshire School ground-mounted system is composed of 8,332
high performance crystalline silicon solar panels manufactured in the U.S. by
SolarWorld.
The solar field will generate approximately 45 percent of the school’s
electricity needs and is part of the school’s broad sustainability master plan
submitted by Berkshire students to the school’s Board of Trustees. An important
cornerstone of the plan is having the school achieve carbon neutrality by 2016.
Architects Ortner + Ortner Baukunst have Built a PV Pavillon with Customized
Solar Modules from Odersun on the Campus of Potsdam University of Applied
Sciences
The 35-meter-long photovoltaic pavillon adds the finishing touch to the
university campus of Potsdam University of Applied Sciences and is to be used as
a space for social events, brainstorming ideas and presentations. The Odersun
solar modules, which are just under 4 meter high and 1 meter wide, cover the
whole building. Made from 25 mm-thick break-proof security glass, the PV modules
act as façade elements and were specially developed and manufactured for this
project.
The idea of integrating the green building concept into the redesign of the
campus site was part of the project from the outset. Architects Ortner + Ortner
Berlin developed this idea further in conjunction with students from the
University of Applied Sciences and module manufacturer Odersun which specializes
in solar architecture. The result is a symbiosis of sustainable architecture,
functionality and efficiency – in short, a solar façade that not only generates
power, but is also aesthetically attractive.
Odersun not only manufactured the project-specific modules, it was also involved
in a supportive capacity in the electrical concept and the construction
planning. Odersun’s CISCuT thin-film technology gives the architects the same
design freedom similar to glass while at the same time allowing them to achieve
sustainable building goals.
Thin-film solar modules such as those produced by Odersun are particularly
suitable for use in building-integrated photovoltaics (BiPV), because they offer
very good yields even in shade and at high temperatures, and even If they are
not optimally aligned to the sun.
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
----------
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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvaine@mcilvainecompany.com
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191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax: 847-784-0061
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