November 2014 - Power Air Quality Insights 183

Sales of non-woven, woven and membrane filter media will exceed $12 billion in 2015. This is the conclusion reached by the McIlvaine Company by aggregating forecasts in multiple reports. (www.mcilvainecompany.com)

Filter Media Revenues
Filter Type	2015 Sales ($ Billions)
Air Filtration (air)	2
Fabric Filters (dust )	2
Cartridge Filters (liquid)	2
Cross-flow Membranes	2
Mobile	2
Miscellaneous	2
Total	12

The market can be divided into six $2 billion segments. Air filtration includes residential, commercial and industrial HVAC filters and inlet filters to gas turbines. Fabric filters involves separation of dust from stack gases. It is distinguished from air filtration by the higher dust loads and the inclusion of media cleaning. Cartridge filters are purifying liquids and are distinguished from cross-flow membranes by the fact that they are dead-end. All the liquid flows through the cartridge. Cross-flow membranes reject a portion of the liquid and, thereby, provide a mechanism for keeping the surface clean.

Other applications of filter media have been aggregated to provide $2 billion segments. They include media used in liquid macrofiltration. This media is used in filter presses and bag filters. This segment also includes respirator media.

There are many innovations which are impacting the market potential as well as the competitive dynamics. Nanotechnology is playing a big role and promises to become increasingly important. Membrane developments will contribute to a high growth rate for desalination.

Established OECD air pollution companies face a monumental challenge as the market shifts to other regions. This is the conclusion of the McIlvaine Company in Air Pollution Management. (www.mcilvainecompany.com)

The shift away from OECD is demonstrated by viewing the market in percentage terms. The world market in 2000 is 100 percent. All other years are shown as a percentage of 2000 and normalized to 2000 dollars. There has been a huge growth from just 8 percent of the 2000 market in the 1960s to a projected 230 percent in 2030.

The OECD countries including the U.S., Japan and Europe enjoyed most of the air pollution market prior to 2000. The market share went from 75 percent in the 1990s to just 46 percent a decade later. In the present decade, the market share will drop to 28 percent. In the 2020-29 period, the market share will shrink to just 22 percent.

The major markets of the future are in Asia. Coal combustion will remain the largest single application for air pollution control. China already combusts 33 percent of the 9 billion tons of coal burned worldwide each year. The country plans to convert another 1.5 billion tons to synfuels and chemicals. This conversion initiative alone is equal to 20 percent of the entire world air pollution control 2000 market. If it takes place over five years, it will increase the world market by 4 percent each year.

The market in the 1960s was primarily particulate control for power plants, foundries, steel mills and heavy industry. Starting in the 1970s, removal of acid gases such as SO₂ and HCl greatly expanded the market. In the 1980s, NO_x control became a big market. Today mercury and air toxic reduction is the area of greatest expansion.

The market growth in ROW is a combination of industrial expansion and regulation of emissions. In China, the emission limits are similar to those in OECD. Some other Asian nations are behind China but moving forward with programs.

Some of the traditional OECD air pollution equipment companies have disappeared through mergers or even bankruptcy. Others have prospered by expanding their international scope. Because of the size of the Chinese market, it will be difficult for any international supplier to succeed without some activity there. One route has been cross licenses. MET licenses wet SO₂ scrubbers in China and is the licensee for a Chinese dry scrubber technology. Increasingly, Chinese companies will join the ranks of international suppliers and pursue the OECD markets.

Ex-Im Bank Approves $200 Million to Support Renewable Energy Exports in FY 2014

The Export-Import Bank announced that it authorized approximately $200 million to finance U.S. renewable energy exports in FY 2014, bringing its total support to nearly $2 billion since 2009. Backed by a congressional mandate to support environmentally beneficial U.S. exports, Ex-Im is committed to empowering American companies to sell their renewable energy goods and services in overseas markets, which results in more highly skilled jobs for U.S. workers.

Last year alone, the Bank's nearly $200 million in financing authorizations enabled U.S. companies to ship approximately $550 million worth of renewable energy exports to the global marketplace in support of wind, solar, hydropower, and geothermal projects. Private sector lenders generally are unable to offer longer financing terms on renewable energy projects, so the Bank's support is especially important in a sector where capital needs and fuel costs are spread across the lives of projects in very different ways as compared with traditional energy projects.

Pattern Development Signs Agreement to Develop Largest First Nation Wind Project in Canada

Pattern Energy Group LP announced it has entered into a joint venture partnership with Henvey Inlet First Nation to jointly develop, own and operate the 300 megawatt (MW) Henvey Inlet Wind project to be built in Parry Sound District, Ontario. Pattern Development will own a 50 percent joint venture interest in the 300 MW project, which has a 20-year Power Purchase Agreement with the Ontario Power Authority (OPA) for 100 percent of its expected production. Nigig Power Corporation, wholly owned by Henvey Inlet First Nation, will own the other 50 percent of the project.

Pattern Development expects to arrange both construction and long-term debt financing for Henvey Inlet in 2016.

SPI Solar Subsidiary Announces EPC Agreements for 80 MW of Solar Projects in Inner Mongolia Region and Guangdong Province, China

SPI Solar, a vertically-integrated photovoltaic solar developer, announced that it’s newly established and wholly owned subsidiary, SPI Solar Power Engineering (Suzhou) Co., Ltd. (Suzhou Xinwei), entered into two engineering, procurement and construction agreements for an aggregate of 80 megawatts of solar projects in China. The two agreements call for Suzhou Xinwei to provide EPC services to two projects ― one ground-based utility project of 70 MW in Huade County, Inner Mongolia Region and one distributed generation project of 10 MW in Shunde County, Guangdong Province.

Construction of the Huade Project is scheduled to begin in early December 2014 and be completed with grid connection by the end of July 2015. Construction of the Shunde Project is scheduled to begin in November 2014 and be completed by the end of December 2014 with grid connection.

Microsoft Taps Siemens as Technology Partner to Engineer Power Monitoring Solution for First Zero Carbon Biogas Data Center

Siemens Energy Management has partnered with Microsoft and FuelCell Energy to design, engineer and install equipment and software, including a power monitoring solution, for the nation’s first zero-carbon, waste-to-energy data center in Cheyenne, WY. The project uses biogas methane produced by common waste byproducts at the nearby Dry Creek wastewater facility to power the fuel cell system. The fuel cell system then converts the biogas into electricity to power the Microsoft datacenter.

Siemens engineered and installed intelligent controls, power monitoring hardware and energy management software that is helping to power the first zero-carbon data center that will be entirely independent from the grid.

Renewable Energy Systems Americas Inc. (RES Americas), a leader in the development and construction of wind, solar, transmission, and energy storage projects in North America, is pleased to announce two grid-scale energy storage projects outside of Chicago that, once completed in 2015, will be the largest, fully commercial energy storage projects in North America.

RES Americas will develop and construct the two 19.8 megawatt (MW) energy storage systems, each having the ability to store 7.8 megawatt-hours (MWh) of energy. The first project, Elwood Energy Storage Center, will be located on Pilsen Road in West Chicago and the second project, Jake Energy Storage Center, will be located on Brandon Road in Joliet. Construction is expected to begin on both projects this winter with completion by August 2015. The projects are expected to operate for at least ten years. RES Americas acquired the projects during the development phase from Glidepath Power in September of 2014.

§ AES wins Long-term Contracts totaling 1,384 MW by providing Innovative Energy Solutions to help meet California’s Electricity Needs

§ Martinlaakso Power Plant in Finland receives Energy Authority approval for an Innovative Solution

§ Metso to supply an Innovative Superheater Corrosion Management Solution to TAURON Cieplo's Tychy CHP Power Plant in Poland

§ Dominion Virginia Power seeks bids for 1,600 MW of Intermediate or Base Load Power Generation

§ NASDAQ Hearings Panel grants Advanced Emissions Solutions request to extend stay of their delisting of Company’s Common Stock pending determination of Panel’s Final Determination

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
November
13	Power Plant Cooling
December
18	Boiler Feedwater Treatment