May 2014 - Power Air Quality Insights 157

U.S. Air Pollution Control Companies Can Adjust To the Shrinking Coal Market

Suppliers of air pollution control systems in the U.S. have relied on huge purchases by owners of coal-fired boilers as the leading source of business since the 1920s. More than 50 percent of U.S. air pollution control purchases have been by the power companies. There are not likely to be any new coal-fired boilers in the next decade. This creates a significant challenge but one that can be met, says the McIlvaine Company in Air Pollution Management. There are several routes:

Divestiture: One option for large multi-product companies is to sell their air pollution control division. This was the route taken by Siemens when it sold Wheelabrator to Foster Wheeler.

Acquisition: Another option is to diversify into non-power related industries. This was the route taken by Babcock & Wilcox when it purchased MEGTEC earlier this month. MEGTEC is a major air pollution control system supplier to the chemical industry and to many plants which utilize solvents.

International Expansion: The market for air pollution control systems in China is more than twice as large as the U.S. market was at its peak. India is a generation or two behind China but has extensive needs.

Total Solutions: The world’s knowledge is expanding geometrically, whereas individual ability remains relatively static. The increasing knowledge gap can be eliminated through outsourcing. Suppliers of air pollution control systems can become the virtual operators of those systems. Remote monitoring of operations along with smart valves, pumps, neural networks, optimization software and many other digital innovations allow the offsite experts to perform at a level which was, heretofore, impossible.

Maintenance should be anything but routine. All the digital tools can reduce the cost and increase reliability by focusing on the components likely to fail if not attended. The air pollution system supplier can also minimize the aggregate inventory of parts by storing them for multiple systems. Typically, 80 percent of the components of air pollution control systems are supplied by third parties. This includes fans, dampers couplings, nozzles, dust valves, pumps mist eliminators, motors, PLCs, DCS, bags, etc. The system supplier can generate significant profits by supplying the repair parts for all of the components in the system.

The major contribution of the system supplier can be to take responsibility for the results. The system has to meet emission limits. It should do so with minimum expense and with the least effect on production. Plant operators can afford significant payments to achieve these goals.

Over 250,000 MW of coal-fired boilers will remain in operation in the U.S. for the next forty years (McIlvaine and DOE forecasts). The absurdity of retrofitting and upgrading ancient boilers is a political reality. It is also a very big opportunity. Building new boilers for the forty year run would be much less expensive. Instead, the large outlays for keeping the old fleet running can be converted to profits by the APC companies.

Deepwater Wind announced plans to develop the West Coast’s first-ever offshore wind farm – a project poised to become the world’s first commercial project to use cutting-edge floating foundation technology.

Deepwater Wind entered into an agreement several months ago with Principle Power to complete the development of the 30-megawatt (MW) WindFloat Pacific project, using Principle Power’s groundbreaking WindFloat technology.

This agreement demonstrates Deepwater Wind’s success in building a portfolio of offshore wind projects across multiple technologies and geographic areas. Much as Deepwater Wind’s Block Island Wind Farm is jumpstarting the East Coast offshore wind industry – where water depths are suitable for fixed foundations – the WindFloat Pacific project will similarly act as a catalyst for large-scale floating offshore wind farms in the deep waters of the Pacific Ocean that are unsuitable for fixed foundations.

The 5-turbine WindFloat Pacific project would be built within a 15-square mile lease area in federal waters roughly 15 miles off Coos Bay, OR, with the wind farm in operations in 2017.

Principle Power has successfully operated a full-scale WindFloat prototype off the coast of Portugal since 2011, where it’s delivered in excess of nine gigawatt (GW)-hours of wind energy to the local grid.

Abengoa Obtains Environmental Approval for South America’s Largest Solar Thermal Plant

Abengoa the international company that applies innovative technology solutions for sustainability in the energy and environment sectors, has obtained a favorable environmental rating from the authorities of the Chilean Environmental Service to develop a solar-thermal plant using molten salts tower technology with an installed capacity of 110 MW.

The project is located in the Atacama Desert, the region with the highest levels of solar radiation in the world.

Cerro Dominador will be the first solar-thermal plant for direct electricity production in South America. It is also the first non-conventional renewable energy plant to serve as a baseload power plant thanks to its production stability and reliability. Furthermore, it will have a thermal storage system designed and developed by Abengoa, which will enable electricity to be produced for approximately 18 hours without the need for a solar resource. This will enable it to supply electricity in a stable way, 24 hours a day, and to respond to all demand periods for electricity consumption.

SkyPower FAS Energy signed agreements with both the Federal Republic of Nigeria Government and the Delta State of Nigeria Government for the development of 3,000 megawatts (MW) of utility-scale solar photovoltaic (PV) projects within Nigeria and the Delta State of Nigeria to be built over the next five years.

These foundational agreements represent a monumental renewable energy milestone, which entails a multi-phase development and build schedule that will result in production of clean, sustainable, cost-effective energy to support the growing energy needs of Nigeria. SkyPower FAS Energy is committed to work closely with both governments for the planning, financing, and construction of 3,000 MW of utility-scale solar PV energy projects for the Nigerian power grid, which are expected to reach commercial operation in phases starting in 2015.

GEI Consultants, Inc., a geotechnical, environmental, water resources, and ecological science and engineering firm, announced that it is providing certain Owner's Engineer services for the proposed Sacramento Municipal Utility District (SMUD) Iowa Hill Pumped-Storage Development project. GEI is pleased to be a member of the Jacobs Associates team for the project. SMUD recently awarded the Jacobs Associates team the Owner's Engineer services contract for preliminary design and construction services on their proposed Iowa Hill Pumped-Storage Project. If constructed, Iowa Hill would be a 400 megawatt pumped storage hydroelectric facility. GEI will lead the design of the 6,400 acre-foot upper reservoir, a lined impoundment that will be formed by an earth- and rock-fill dam with a maximum height of more than 200 feet and a crest length of 5,900 feet. The design of the dam and reservoir will be under the regulatory authority of the Federal Energy Regulatory Commission (FERC) and the California Division of Safety of Dams (DSOD).

The project would utilize an existing reservoir on the American River, from which water would be pumped up to a new 6,400 acre-foot capacity upper reservoir, where the water would be stored. During peak electrical demand periods, water would flow from the upper reservoir to the lower reservoir via a 1,000-foot-deep (305 m) shaft through 3,500 feet (1,067 m) of water tunnels. The electricity generated would connect the existing transmission line that connects SMUD's existing Upper American River hydroelectric project with the District's customers.

Bluesphere Announces Start of 5.2 MW Waste to Energy Project in Charlotte, NC

Bluesphere Corp, a clean energy company that develops, manages and owns waste-to-energy projects, announced commencement of detailed design and engineering work for its 5.2 megawatt (MW) waste-to-energy project in Charlotte, N.C. This detailed design and engineering work, which is expected to take about two months, is the first stage of project execution, launching the project in full force. This will be followed by work onsite.

Bluesphere is the project owner, developer and manager for this 5.2 MW organics-to-energy anaerobic digester. The facility will intake organic waste such as food and farm waste that would normally go into landfills. The organic waste is processed in an anaerobic digester to emit biogas, which then is turned into electricity and compost is a by-product. The facility generates revenues from intake of organic waste, as well as the sale of clean, renewable electricity, and the sale of compost.

A Fortune 50 company has signed on to provide $13.8 million in debt project financing for the facility and a leading environmental finance fund will provide equity project financing of $9.1 million,. One of the largest power holding companies in the U.S. has a signed a long-term contract with Bluesphere to purchase electricity generated at the Charlotte plant. Compost, which is a by-product of the organics-to-energy generation process, will be purchased under a contractual agreement, by one of the largest privately held composting companies in the world.

Blue Sphere is developing its second U.S. organics-to-waste facility in Rhode Island and by 2018 the company plans to have 11 facilities built with 6 more under construction and development.

§ Siemens to acquire the Rolls-Royce Energy Gas Turbine and Compressor Business

§ World Bank approves N190.24 Billion Loan for Qua Iboe, Azura Power Projects

§ Demir Madencilik bids $351 Million in Catalagzi Thermal Power Plant Tender in Turkey

§ Berkshire Hathaway Energy Unit buying AltaLink for 3.2 Million Canadian Dollars

§ “Mercury CEMS Options” - Hot Topic Hour, May 8, 2014 indicated differences between Sorbent Traps and Mercury CEMS

§ Gas Turbine Intake Filters is the “Hot Topic” for the Webinar May 15^th at 10 a.m. CDT

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 Tracking System. The cost is $300.00 for non-subscribers.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT
May 29, 2014	Stellite Delamination in Power Plant Steam Valves	More information
June 5, 2014	Dry vs. Wet Cooling	Surprising number of ACC’S. Why?
June 12, 2014	HRSG Issues (Fast Start, Tube Failures)	Lots of challenges to cycle 200 X/yr
June 26, 2014	CCR	$ billions Needed
July/August 2014	Boiler Feedwater Treatment Condensate Polishing for Peaking Turbines 316 B Water Issues Gas Turbine Permitting Issues *Give us your opinion about topics we should consider*

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