Decisive Classification is an Important New Tool in Air, Water and Energy
A
Decisive Classification system promises to make the following contributions:
Increase
world productivity and GDP
·
Allow developing nations to utilize the wisdom of the developed world
·
Eliminate language barriers
·
Encourage the selection of lowest life cycle cost products rather than those
with lowest initial cost
The Decisive Classification system is being developed by the McIlvaine Company
and is accessible free of charge in the
Global Decisions Orchard website.
All decisions are a sequence of classifications. The more relevant the
classifications, the better the decision. In the increasingly international
world it is also important that classifications be precise and that this
precision is conveyed in the appropriate languages of which Chinese and English
are the two most important.
The system is designed to assist purchasers in finding the right products in the
air, water and energy sectors. But it is also equally useful to suppliers,
researchers and even investors.
The purchaser typically starts with classifying his application. McIlvaine
has adopted the U.S. NAICS code system but with decisive additions.
Internal Data Search by Application
Click |
Application
Sequencing |
|
211111 - Crude Petroleum and
Natural Gas Extraction |
Oil Shale |
|
211111 - Crude Petroleum and
Natural Gas Extraction |
Shale Gas
页岩气 |
|
211111 - Crude Petroleum and
Natural Gas Extraction |
Shale Oil |
In this case McIlvaine has chosen to separate oil shale from shale oil. The
reason is that they are two completely different applications. Shale oil can be
extracted with hydraulic fracturing because it is a liquid. Oil shale must
be heated in-situ or mined in order to process the solid kerogens.
Classification of products is by market share rather than by theory. A
decade ago dissolved oxygen monitors were based on either galvanic or
polarographic methods. Then optical instruments gained popularity. This created
three categories. Today optical instruments are dominant, so the first
classification should now be optical or electrochemical. This classification is
very valuable to the searcher because it indicates that it is more important to
decide between optical and electrochemical than between specific electrochemical
approaches. A new development in this field uses nanotechnology.
Therefore, the classifications are likely to change again.
The classification sequence includes applications, processes, products, goals,
tasks and supplier companies. A process could be water treatment. The goals
could be safety or air quality. One of the big problems with identifying
supplier companies is the multiple names in Chinese and English. This is
overcome by a system whereby every company is identified by a number. The
corporate name in Chinese and English is linked to the number as is the precise
subsidiary name.
Tasks and products are identified in a parent–child system. Here is an example
for catalyst maintenance for a power plant selective catalytic reduction system:
Other Children of Catalyst
Maintenance: |
|
Parent |
Descriptor |
Chinese
Descriptor |
Definition |
Catalyst Maintenance |
Cleaning Catalyst |
催化剂除灰 |
A dry process that utilizes
vacuum and compressed air to
mechanically remove as much of
the flyash accumulation as
possible. |
Catalyst Maintenance |
Regeneration Catalyst |
催化剂再生 |
“Catalyst cleaning” followed by
a wet chemical process to remove
decay compounds plus
re-impregnation of the catalytic
compound(s). |
Catalyst Maintenance |
Rejuvenation Catalyst |
催化剂复原 |
“Catalyst cleaning” followed by
a wet chemical process to remove
some decay compounds with
minimum removal of catalytic
compound(s). There is no
re-impregnation of the catalytic
compound(s). |
The value of this classification to Chinese power plant operators is
substantial. They have just recently installed their first DeNOx
systems and do not have the maintenance experience to be familiar with the
options. A system which clarifies that there are three main options is
therefore very helpful.
The McIlvaine Company will continue to develop the system and is seeking input
from associations, governments and corporations. A niche expert network is also
being established to ensure that the classifications reflect the world’s
knowledge.
For more information, click on: Global
Decisions Orchard or contact the McIlvaine Company at
editor@mcilvainecompany.com
847-784-0012.
Market for Chemicals to Treat Air will Grow Faster than Water
The present world market for chemicals to combat air pollutants is $13.8 billion
but will be growing at a healthy eight percent per year over the next five
years. The larger ($24 billion) water treatment chemicals market will be growing
by six percent per yr (real dollars). These are the latest findings by
McIlvaine Company through extracting forecasts from a number of its market
reports.
Category |
U.S. |
World |
||
|
$ Millions |
Tons
Millions
|
$ Millions |
Tons
Millions |
Lime Total |
2,000 |
20 |
33,000 |
330 |
Lime Air |
600 |
4 |
1,800 |
12 |
Lime Water |
120 |
1 |
4,800 |
4 |
Limestone Total |
7,000 |
700 |
70,000 |
7,000 |
Limestone Air |
400 |
35 |
2,000 |
175 |
Ammonia DeNOx |
1,500 |
|
6,000 |
|
Other Chemicals in Air |
1,000 |
|
4,000 |
|
Air Sub Total |
3,500 |
|
13,800 |
|
Water/Wastewater
Treatment Chemicals |
4,500 |
|
24,000 |
|
Air to Water Ratio % |
78 |
|
58 |
|
Presently, lime, limestone and ammonia are the chemicals most used for air
pollution control. However, the use of other chemicals will be growing at
double-digit rates. In the U.S. this segment presently generates $1 billion in
revenues. It includes activated carbon, sodium products, bromine,
potassium permanganate, hydrogen peroxide, sulfuric acid, amines and certain
other chemicals. These chemicals are used for mercury, acid gas, volatile
organic compounds, odor, CO2 and microbial capture or destruction.
The U.S. market for activated carbon for air pollution promises to be twice as
big as the market in water pollution which is presently 400 million pounds per
year. Norit, Calgon Carbon, Albemarle and a joint venture involving ADA-ES
are the major players. Bromine is competing with activated carbon.
Chemtura, Albemarle and ICl are spearheading the U.S. effort.
FMC has formed an environmental group to supply air pollution, water pollution
and remediation products. Hydrogen peroxide is being promoted for NOx
control FMC, Tata Chemicals and Church & Dwight have formed Natronix to offer
various sodium products for SO3 and SO2 capture. Potassium
permanganate is used for odor control. Amines are used for CO2 and SO2
capture.
Lime usage in the U.S. is 20 million tons with revenues of $2 billion.
Environmental uses are seven million tons but with the average price of $150/ton
generate revenues of $1 billion. Air applications now account for 80
percent of the total environmental revenues. Lhoist, Carmeuse, Graymont and
Mississippi Lime are quite active in the U.S. market. The Chinese market for
lime is presently 180 million tons with less than two percent used for air
pollution control, but there will be double-digit annual growth over the next
five years.
Dry injection for HCl control will boost lime sales in the U.S. Another
potential is the use in inhibited oxidation wet SO2 removal systems.
The resultant calcium sulfite sludge can be fixed with excess lime and
encapsulate toxic metals. This eliminates the need for expensive wastewater
treatment. Limestone will continue to be the most utilized reagent for SO2
capture. The largest growth will be in China in the next decade.
Ammonia is used in various forms (anhydrous and aqueous). A popular
alternative is the purchase of urea and on-site conversion to ammonia. A huge NOx
control program is underway in China. A preference for the urea to ammonia
approach has been indicated.
The $24 billion water and wastewater chemicals market will grow at levels well
above GDP in the next five years, but its pace will be slower than air.
One reason is that non-chemical technologies such as Ultra-Violet disinfection
and electrodeionization are taking market share away from chemicals. In the U.
S., air chemicals presently represent 78 percent of the total for water.
This will increase to 85 percent over the next five years.
Information on these markets is found in:
FGD World Markets,
click on:
http://www.mcilvainecompany.com/brochures/air.html#N027
NOx Control World Markets,
click on:
http://www.mcilvainecompany.com/brochures/air.html#n035
Water and Wastewater Treatment Chemicals: World Market
http://www.mcilvainecompany.com/brochures/water.html#NO26
Highlights From the May 10 McIlvaine Markets Webinar
Analysts and executives were participants in the McIlvaine Markets webinar last
week. One of the questions was in response to the display showing that all the
markets are fractured. The top five companies in valves, pumps, filters, etc.
have less than 10 percent of the world market. The question was: Why are
they fractured?
The answer was that it is easy to roll-up a market dependent on mass production
or mass marketing. Economies of scale can be achieved without too much
difficulty. But the air and water roll-up synergies are based on shared
knowledge. Creating an environment where disparate groups are willing to share
knowledge is very difficult. Early failures have discouraged newcomers from
pursuing the roll-up strategy.
Here are some of the insights which were discussed at the May 10 meeting:
Mercury, Activated Carbon, Ballast Water
·
R.W. Baird projects big earnings for ADA-ES based on refined coal success and
opportunities to sell systems to remove air toxics.
·
Activated carbon potential is expanded by new potential to utilize it in the
scrubber to separate the mercury from the gypsum.
·
The FLS roaster concept would make activated carbon applicable even when flyash
is to be sold. It could also open the door to a big market for metals recovery
and solve the huge waste disposal problem facing power plants.
·
Activated carbon can also remove selenium. This recent discovery could boost the
market.
·
W. L. Gore and Shaw have technologies to threaten activated carbon. The Gore
technology is a trim system to be used with a wet scrubber, whereas Shaw uses
bromine compounds to supplement the existing air pollution control equipment.
·
Norit is looking at either IPO or sale as a result of big debt load. Goldman
Sachs is the adviser. Norit is the largest A-C supplier to the U.S. power
market.
·
Calgon Carbon is second largest supplier of A-C for mercury, but a bigger
potential is in ballast water treatment with UV and complete systems.
·
Alfa Laval, Veolia, Severn Trent and Calgon Carbon are early leaders in a
ballast water treatment market which will generate $70 billion in revenues in
just seven years.
Energy and Pollution
·
Renewables are unreliable and are supplemented by big CO2 emitters
such as peaking turbines. Schneider Electric has technologies to extend
renewables reliability.
·
Co-location of sewage treatment, waste-to-energy and coal-fired power would be
cost effective and have big environmental benefits. Siemens, Doosan, Xylem and a
few others are well positioned to take advantage of these opportunities.
·
Energy Recovery bought back over one million shares at a low price of
around $2/share after prices plunged due to loss of a mega project desalination
order.
·
GE is a major player in small desalination plants, treatment chemicals, solid
liquid separation and air and dust filter media. Analysts’ near-term assessments
are mixed. Last month Morgan Stanley lowered their EPS estimates. Analysts
at Goldman Sachs raised their price target; Nomura reiterated a “buy” rating.
Barclays Capital reiterated a “top pick” rating on shares of General Electric in
a research note to investors on Tuesday, April 17th.
·
Shale gas fracking could be a big market for suppliers of zero liquid discharge
systems including GE, Aquatech and Veolia.
Water Treatment
·
Electrodeionization has a great future according to McIlvaine Company. Siemens
is focusing on its use in desalination. Nalco is pursuing the technology
for biofuels. Snowpure is a little company starting to have a big impact
with EDI for Chinese power plants.
·
Xylem first quarter revenue was up six percent to over $900 million. The
integration of YSI is going well and underscores the potential for
instrumentation and monitoring to enhance treatment. Xylem paid $310 million
for YSI, which had 2010 revenues of $101 million. Janney was adviser to YSI for
this transaction as well as the YSI purchase of Design Analysis Associates in
2009 which brought the hydrological monitoring. There is a big potential in
hydrological monitoring for the shale and coal ash pond markets.
·
Culligan has reportedly hired advisers relative to corporate restructure.
Chapter 11 may be one option to deal with a $900 million loan. The private
equity firm Clayton Dubilier & Rice currently owns the company and could
consider selling, according to one source.
·
Pentair first quarter earnings were down but, "It was a muted quarter, not
indicative of the business going forward assuming the Tyco deal goes through,"
said John Quealy, an analyst at Canaccord Genuity. Tyco posted a second-quarter
profit that beat analyst estimates, thanks to sales growth in its key segments.
·
Rexnord Corporation (NYSE: RXN) closed its initial public offering last month of
27,236,842 shares of common stock at $18.00 per share. The net proceeds
were approximately $459 million. BofA Merrill Lynch, Goldman, Sachs & Co..
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, Inc. and Barclays
Capital, Inc. acted as joint book-running managers in connection with the
offering.
·
Pall is receiving $536 million for sale of blood filtration unit to Haemonetics.
Larry Kingsley, CEO said, “It will enable Pall to focus on markets and
opportunities where we are best positioned for growth.”
·
IDEX has acquired ERC. ERC’s products include in-line membrane vacuum degassing
solutions, refractive index detectors and ozone generation systems. Located in
Kawaguchi, Japan, ERC has a global customer base and annual revenues of
approximately ¥2.14 billion.
Air
·
Foster Wheeler has entered the air market with the purchase of Graf-Wulff and
can take advantage of the fast growing fluid bed dry scrubber segment.
·
Doosan has also expanded in the air market and has a number of technologies
thanks to the purchase of AEE. Doosan is also a major player in desalination.
·
Demand for lime will increase due to new air toxic regulations in the U.S.
This will benefit Graymont, Mississippi Lime and Lafarge.
·
B&W stock has ranged from $18-$31/share over the last 52 weeks and is presently
in the mid twenties. The company could benefit significantly from the new U.S.
air toxic regulations.
·
Alstom
sales should increase by more than five percent per year over the next three
years while operating margin should gradually improve to around eight percent in
March 2015, said Patrick Kron, Alstom’s Chairman and Chief Executive Officer.
On May 31 we will be conducting a webinar on “Air Pollution Markets.” You
can register at:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
“Status of Carbon Capture Programs and Technology” is Hot Topic Hour on May 24,
2012
On March 27, 2012, the U.S. Environmental Protection Agency (EPA) proposed the
first Clean Air Act standard for carbon pollution from new
fossil
fuel-fired
power plants. The proposed rule requires new fossil
fueled power plants meet an output-based
standard of 1,000 pounds of CO2 per megawatt-hour
(lb CO2/MWh gross).
The rule creates a clear path forward for new technologies to be deployed at new
coal-fired electricity generating units (EGU’s) that will be built in the
future. The rule does not apply to existing power plants already operating (even
if they make significant modifications such as
changes needed to meet other air pollution standards), power plants that
will start construction over the next twelve months and power
plants that do not burn fossil fuels (e.g., burn
biomass only).
In the information documents EPA released announcing the proposed rule, EPA
noted “New power plants can choose to burn any fossil fuel to generate
electricity, including natural gas as well as coal with the help of technologies
that reduce carbon emissions.” and “New power plants that are designed to use
coal or petroleum coke would be able to incorporate technology to reduce carbon
dioxide emissions to meet the standard, such as Carbon Capture and Storage
(CCS).” Although the rule will also apply to new natural gas combined cycle
(NGCC) power plants, EPA believes that NGCC plants should be able to meet the
proposed standard without add-on
controls.
This proposed rule makes it very clear that any new coal-fired EGU to be
constructed after 2013 will need to incorporate a method to capture CO2
and remove it from the environment (commonly referred to as Carbon Capture and
Storage or CCS). Removal can be accomplished by underground sequestration, sale
for enhanced oil recovery or to make other chemicals or for use in applications
such as carbonation of beverages and food storage. However, EPA apparently
recognized the burden that this new and relatively unproven technology will
place on the utility industry and gave new power plants that use CCS the option
to use a thirty year average of CO2 emissions to meet the proposed
standard, rather than meeting the annual standard each year. A company could
build a coal-fired
power plant and add CCS later. For example, a new power plant could emit more CO2
for the first ten years and then emit less for the next twenty years, as long as
the average of those emissions met the standard. Also, power plants that install
and operate CCS right away would have the flexibility to emit more CO2
in the early years as they learn how to best optimize the controls. EPA expects
that this flexibility should cause CCS to become more widely available and lead
to lower costs and improved performance over time.
The following speakers will help us understand
the current state of development of various CCS technologies, the
economics, the potential carbon reductions achievable and the advantages or
disadvantages of these various options. They may also speak about the results of
current demonstration projects and technologies that have been commercialized at
power plants and the strategies that are being considered and adopted by
utilities to meet this proposed rule.
Dennis (Denny) McDonald P.E.,
Manager/Functional Technology and
Steve Moorman,
Manager, Business Development - Advanced Technologies at
Babcock & Wilcox Power Generation Group, will discuss
the status of B&W's carbon capture programs and technologies and their
perspective on the factors that have greatly slowed the global momentum toward
CCS.
The market drivers for electricity generating equipment are rapidly changing.
Over the past two years talk of cap-and-trade and expectations of legislation
limiting carbon dioxide (CO2) emissions have faded. Poor
economic conditions have limited the pool of public funding for CCS development.
Horizontal drilling techniques have made natural gas abundant and inexpensive
supplanting coal as the fuel of choice for electricity production. In
addition, EPA has imposed particulate and mercury limits under the MATS rule
that are prohibitive for new coal generation. The most recent EPA rule
establishing a CO2 emission limit of 1000 lb MWh is too low for even
the most efficient coal-fired power plants to meet without carbon capture and
storage (CCS).
As a result of these factors, the worldwide momentum for development of carbon
capture technologies has slowed considerably. In spite of some successes in
moving CCS technologies toward commercialization, several key demonstration
programs have been cancelled or postponed indefinitely. The FutureGen 2.0
project is continuing though it faces many challenges. In this
presentation B&W will offer their perspective on the current climate for CCS,
provide an update on the FutureGen 2.0 project and the status of their
post-combustion and chemical looping carbon capture development programs.
Dr. Neeraj Gupta,
Senior Research Leader for Energy Systems at Battelle
Memorial Institute, will present a “CO2 Utilization and
Storage Technology Update.” Commercial readiness of CCUS technologies to meet
the regulatory constraints depends on our ability to expand research on geologic
storage and utilization, exploration for safe and effective subsurface storage,
appropriate policy and financial framework. This presentation will offer
an update based on lessons learned from a number of field-testing projects,
especially in the Midwestern USA, a region with strong dependence on coal.
Opportunities for near-term deployment as well as challenges facing
large-scale deployment will be presented.
Jeffrey (Jeff) Price,
Managing Partner at Bluewave Resources, LLC, will discuss the “Outlook
for Carbon Capture and Storage.” Applying Carbon Capture and Storage (CCS) to
coal plants may be one route to compliance with EPA’s proposed Greenhouse Gas
NSPS. Over the last decade governments and industry have devoted
substantial resources to the development of CCS. CCS, however, is not yet
commercially ready for power plant applications. While considerable
progress has been made, more remains to be done. This presentation
explains the current status and outlook for the commercial application of CCS in
the power sector.
John Wheeldon,
Project Manager, Coal Technology at the Electric Power Research Institute (EPRI)
To register on Thursday, May 24, 2012 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 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 |
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
|
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)
|
|
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:
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.
Here are the Headlines for the May 11, 2012 – Utility E-Alert
UTILITY E-ALERT
#1074 – May 11, 2012
Table of Contents
COAL – US
COAL – WORLD
GAS / OIL - US
GAS / OIL – WORLD
CO2
GASIFICATION
NUCLEAR
BUSINESS
HOT TOPIC HOUR
For more information on the Utility Environmental Upgrade Tracking System,
click on:
http://www.mcilvainecompany.com/brochures/energy.html#42ei.
Dust Collector Filter Bag and Cartridge Market to Exceed $2.4 Billion This Year
Bags and cartridges are used to capture dust and purify stack gases. The market
for these products will exceed $2.4 billion this year. The sales of filter media
used in these elements will exceed $1.3 billion. This is the latest finding in
the World Fabric Filter and Element Market
published by the McIlvaine Company www.mcilvainecompany.com.
World Fabric Filter Revenues ($ Millions)
Subject
2012
Bags
2,439
Equipment
2,774
Media
1,364
Systems
6,102
The value of the media used in the elements is increasing for several reasons.
First the market for high temperature bags is growing faster than for low
temperature bags. The media represents as much as 80 percent of the total sales
price in the very high temperature range and as much as 60 percent for somewhat
lower temperatures such as found in asphalt plants and dry scrubber systems used
in power plants.
The second reason is the trend toward pleated bags and the elimination of
internal cages. The cost of the more expensive media is offset by the greater
capacity and cage saving.
A third reason is the increasing use of membranes. They are supported by
non-woven substrates. The membrane film improves the efficiency and cake
release qualities. Regulations are increasingly becoming more stringent.
The U.S. EPA based their costs for cement plants to meet the new metal toxic
regulations on the replacement of conventional bags with membrane bags.
There are new challenges. The consent decrees which are stipulating the
replacement of precipitators with fabric filters on coal-fired boilers burning
high sulfur coal have resulted in maintenance problems. Sulfuric acid condenses
on the bags and makes the cake sticky and difficult to remove. One solution is
the injection of lime ahead of the dust collector.
The growth in the high temperature sector will be more than 8 percent per year.
The increase will be in the power and cement areas. The U.S. and China will both
be large markets over the next few years.
There are potential media developments which could nearly double the media
market. Several companies are marketing ceramic non-woven filter media and bags
which can operate reliably at 850oF. This would allow
filtration to take place ahead of the selective catalytic reduction unit.
An SCR operating on dust free gas can be half the size of one designed to
operate in the dirty gas stream. Furthermore, the life of the catalyst increases
from four years to more than ten years.
A combination dust filter and selective catalytic reduction bag is also now
available. The active catalyst is attached to the surface of the ceramic fibers.
This design has the opportunity to replace both the SCR and the precipitator
with just one device. Furthermore, it would allow the downstream air
pre-heater to operate more efficiently. There is a potential 1 percent increase
in energy efficiency.
For more information on World Fabric Filter and Element Market
http://www.mcilvainecompany.com/brochures/air.html#n021
International Groups Fund Renewable Energy
Renewable energy projects in developing countries are often funded by large
international groups. The following articles are a sample of the information
that may be found in McIlvaine’s Renewable Energy Projects and Update.
OPIC Board Approves $250 Million to Expand Renewable Energy and Infrastructure
Lending in India
The Board of Directors of the Overseas Private Investment Corporation (OPIC),
the U.S. Government’s development finance institution, has approved $250 million
in financing to help India’s premier infrastructure lender expand its lending to
renewable energy and infrastructure projects, providing much-needed long-term
capital to the country’s effort to keep pace with the sectors’ massive
potential.
India’s Infrastructure Development Finance Company (IDFC) will use the OPIC
guaranty to expand its lending to solar photovoltaic projects, energy efficiency
projects, projects that reduce energy consumption and/or demand, and wind farm
projects, among others. The OPIC financing will also support IDFC’s “Go Green”
initiative, which aims to mitigate the social, environmental and carbon
footprint of its projects, as well as lending to infrastructure projects.
Despite significant growth over the past few years, India’s renewable energy
sector remains underserved, primarily due to the inability of financial
institutions to offer long-term lending. The lack of long-term funding options,
especially given current financial market conditions, has made bi- and
multi-lateral support much more critical.
IDB Ramps up Financing for Green Projects in Latin America and the Caribbean
The Inter-American Development Bank (IDB) is ramping up lending for private
sector projects related to renewable energy and energy efficiency to help bridge
the gap for long-term financing for green investments in Latin America and the
Caribbean.
Last year alone, the IDB approved $736 million in financing for private sector
environmentally-friendly projects, compared with the $663 million invested by
the Bank between 2000 and 2010. For 2012, the Bank expects to approve more than
$700 million in financing for private sector renewable energy projects,
particularly wind, solar and hydropower plants.
The increase in the IDB lending for renewable energy and energy efficiency
projects reflects both an increase in demand from its 26 borrowing members and a
strategic shift for the Bank following its capital increase. One of the goals
set in the IDB’s capital increase agreement calls for 25 percent of Bank’s
lending portfolio to support climate change and environmentally-friendly
initiatives, including renewable energy.
Nordic Development Fund Contributes Additional €3 Million for GREENPYME
Expansion
The Inter-American Investment Corporation (IIC) and the Nordic Development Fund
(NDF) reaffirmed their ongoing commitment to supporting SMEs in Central America
and to expanding the GREENPYME initiative in Latin America and the Caribbean by
signing an amendment to the existing €2.2-million agreement of the IIC-NDF Trust
Fund, which will now include an additional €3 million from the NDF. This new
contribution will finance the IIC’s GREENPYME initiative in the Plurinational
State of Bolivia and enhance GREENPYME activities currently underway in Honduras
and Nicaragua, all of which are low-income countries.
GREENPYME seeks to provide SMEs with know-how, tools, as well as technical and
financial support for implementing energy efficiency measures and clean
technologies. In 2011, with the support of the NDF, the IIC’s GREENPYME
initiative was launched in Costa Rica, El Salvador, Guatemala, Honduras, and
Nicaragua. The expansion of the initiative aims at tackling the main barriers to
energy efficiency identified in the Plurinational State of Bolivia as well as
expanding the scope of work currently under way in Honduras and Nicaragua. Over
a three year period, GREENPYME will undertake activities to raise awareness and
promote information on energy efficiency for SMEs, build capacity with the
assistance of local partners, conduct energy audits, and promote the use of
clean technologies.
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
Copyright © 2012 McIlvaine Company. All Rights Reserved
191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax: 847-784-0061
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