The Global Warming Debate Can Be Resolved At Least Temporarily With a
Plan to Please Everyone

The Republicans want more jobs and the White House wants greenhouse gas reduction. Both can be achieved with a revised version of a clean coal program. There are new developments and options not previously explored which make this possible. They are as follows:
• Environmentalists are willing to take the long-term view as per the agreement between China and the U.S. based on Chinese CO2 emissions peaking in 2030.
• A new IEA study shows the economic life of a coal-fired power plant can be as little as 25 years.
• Advanced coal-fired power plants emit 20 percent less CO2 than old power plants.
• Waste heat utilization can double the efficiency of a coal-fired power plant.
• New technologies can make coal-fired power plants more efficient.
There is an intensive debate in the U.S. relative to greenhouse gas reductions. Both sides cite economic consequences. The reduction advocates cite the longer term harm to the planet while the opponents cite the loss of jobs and cost particularly in the short term. Surprisingly, there is one alternative which can achieve the goals and increase rather than decrease jobs.
The solution lies in the fact that upgraded coal-fired boilers can emit 20 percent less CO2 than older boilers. The cost of electricity for upgraded units would not rise because the 20 percent coal reduction and lower maintenance costs offset the depreciation on investment. The analogy is identical to driving a new car or an old one. Many coal-fired power plants are as old as a 1960 Studebaker and not any more efficient.
The new agreement between China and the U.S. calls for steeper greenhouse gas reductions. The United States intends to achieve an economy-wide target of reducing its emissions by 26 percent - 28 percent below its 2005 level in 2025. Relative to the contribution from the power sector, EPA proposed guidelines for existing power plants in June 2014 which would reduce power sector emissions 30 percent below 2005 levels by 2030.
If 40 percent of coal-fired boilers were converted to the advanced supercritical design and those plants which could economically utilize their waste heat did so, the impact on greenhouse gases would be very substantial.
The fact that these capital investments can be amortized based on a 25 year life means that by 2045 these power plants will be retired. They can then be replaced with the latest technology to minimize greenhouse gas emissions.
Upgrading 40 percent of the coal fleet and providing the systems to utilize waste heat would require an investment of more than $300 billion. This would be a very big stimulus to the U.S. economy. It is a win-win situation in that the reduction goals are achieved and there are jobs added rather than lost.
Some coal-fired power plants can be upgraded with new supercritical boilers but retention of existing coal handling and waste treatment. Others may need to be replaced in total. Waste heat utilization can be achieved in multiple ways. Great Rivers Energy is a leader in this technology. It operates the Blue Flint Ethanol plant with waste heat from the power plant. DOE/NETL has a number of waste heat recovery programs. Europe has many examples of co-generation and district heating.
As attractive as this may seem, there are those who will argue that other routes are even more attractive. Why not replace 100,000 MW of coal-fired power plants with gas turbine combined cycle plants? With the cost of gas at $4/MMBtu this is a low cost route to reduce greenhouse gases. There are two problems with this option:
• Transmission of the gas can be costly and requires more infrastructures. Some industrial plants are finding that it will cost an extra $4/MMBtu just to obtain access.
• The low gas price is temporary. Eventually U.S. gas prices will rise to world levels. The construction of LNG and gas-to-liquids plants will ensure the closure of the gap.
A large program is already in place to build gas turbine power generators to fill our expanding electricity needs. The risk in trying to expand this program to eliminate coal is too great.
Others argue that now is the time to replace coal with renewables. However, the selection of renewables to replace coal in the short term would be very expensive. One reason is that each of the renewable energy options has its sweet spot but unlike coal cannot be sited anywhere.

Variables Associated With Energy Sources
Solar Irradiation Varies widely depending on the location and varies from hour to hour and day. Typical capacity factor is 25 percent.
Wind Velocity Varies widely dependent on location and fluctuation at a location providing a typical 30 percent capacity factor
Nuclear Power Capital Costs Estimates range from $3000 to more than $5000/kW with recent escalation for some new plants. Considerable variation in region e.g. low cost Chinese labor.
Nuclear External Costs Ongoing safety costs and impact of accidents such as Fukishima, costs of waste disposal.
Biomass Fuel availability and cost.
Gas Turbine Gas price varies greatly from region to region.
Coal CO2 mitigation cost.

The economics is a function of these variables. A solar plant might have a capital cost of $2,000/kW vs. $2,500/kW for a coal-fired power plant. But if the solar plant has a capacity factor which is 20 percent and the coal-fired power plant has an 85 percent factor, then the capital cost for actual electricity produced is far higher for solar. Many of the areas with the highest irradiation are far from where the electricity is needed, so infrastructure costs loom large.
The reality is that coal will remain a major source of power generation in the U.S. for the next few decades. Carbon sequestration cannot be economically justified but supercritical upgrades and waste heat utilization have an attractive return on investment while also meeting greenhouse gas reduction goals.
More information on this subject can be found in N043 Fossil and Nuclear Power Generation: World Analysis and Forecast.
Weekly updates are provided in the 42EI Utility Tracking System
Will the Market for Thermal Treatment Be $2 Billion or $4 Billion In 2019?
There are many variables which are likely to change the present forecast of $2.3 billion for thermal and catalytic oxidizer sales in 2019. These variables are analyzed in Thermal Catalytic World Air Pollution Markets published by the McIlvaine Company. (www.mcilvainecompany.com)
Thermal Treatment Market ($ Millions)
World Region 2019
Total 2,360
Africa 66
CIS 81
East Asia 922
Eastern Europe 48
Middle East 74
NAFTA 466
South & Central America 181
West Asia 138
Western Europe 384
One variable is the East Asia market. Ambient air quality in major Chinese cities was worse than ever last year. Pollution is the number one concern of the citizens. As a result, the government is reviewing its existing and future five year plans. It is likely that the new regulations will boost the sales of thermal treatment equipment beyond the forecasted totals.
India is another variable. The chemical industry is growing and simultaneously generating more VOCs. There are few regulations. Only benzene and hydrocarbons are targeted. Ambient air quality levels are high in many major cities. The present forecast assumes that the lenient regulatory environment will continue. However, a policy change could boost the 2019 world numbers.
Unconventional oil and gas is another big variable. The requirements in the U.S. to eliminate the emissions of stranded gas from oil shale plants could be good news for oxidizer manufacturers. The ultimate goal is to capture and process the gas. The interim option is to flare the gas. If the gas is captured and liquefied for transport by truck, then the oxidizer market opportunity will be small.
China has a huge program to convert coal-to-gas, fuels and chemicals. There are many oxidizer opportunities. McIlvaine forecasts the potential coal-to-gas delivery will be over 200 BCM by 2025. This would be equal to the entire U.S. shale gas output in 2011. The greenhouse gas impacts of this program are being debated internationally. So this adds a degree of uncertainty.
The forecast is based on the revenues of the system suppliers. There is a much bigger market for total solutions. Megtec, for example, provides ongoing support and service which includes process advice. An example would be whether to destroy or capture vapors. This would be dependent on the fluctuating value of the recovered product.
These developments will continually be analyzed in Thermal Catalytic World Air Pollution Markets. For more information, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/105-n007.
Renewable Energy Briefs
Acciona Windpower to Supply 165 MW for IKEA’s Largest Renewable Energy Project to Date
Acciona Windpower, an Acciona group subsidiary company dedicated to the design, manufacture and sale of wind turbines, has completed a turbine supply agreement with Apex Clean Energy, developer of the 165 MW Cameron Wind farm, which has been purchased by IKEA Group. The agreement includes the supply of 55 Acciona Windpower AW125/3000 turbines and a 20-year Full Service Warranty.
The Cameron Wind farm is located in South Texas, near the City of Brownsville, and marks the first installation of AW125/3000 turbines in the U.S. Each turbine installed at the Cameron Wind farm will have a rotor diameter of 125 meters and a 3 megawatt generator mounted on an 87.5 meter steel tower, a configuration that will deliver maximum energy production for the site.
Acciona plans to begin turbine deliveries in mid-2015 and the project is expected to reach commercial operation in late 2015. When completed, the wind farm will produce clean energy equivalent to the average annual electricity consumption of 59,000 U.S. homes and will be a key part of IKEA’s commitment to produce by 2020 as much renewable energy as the company consumes globally. It will be the single largest renewable energy investment made by the IKEA Group globally to date.
Gaelectric Opens £58 Million Dunbeg Wind Farm in Ireland
Gaelectric, the renewable energy and energy storage group, officially launches its £58 million Dunbeg Wind Farm, which is located between Limavady and Coleraine in Northern Ireland.
Dunbeg is Gaelectric's third operating wind farm on the island of Ireland and is one of the largest wind farms constructed on the island of Ireland. Gaelectric is progressing a program to construct and commission a near term portfolio of approximately 164 MWs of consented wind energy projects on the island of Ireland by 2017.
The 42 Megawatt (MW) Dunbeg Wind Farm comprises 14 Enercon wind turbines (Model E82, each with the capacity to generate up to 3 MW) with a maximum tip height of 125 meters. It will generate sufficient renewable power to meet the electricity demand of nearly 24,000 homes on an annual basis.
Largest African Solar Energy Plant Comes Online in South Africa
SolarReserve has announced that the 96 megawatt (MW) photovoltaic (PV) Jasper solar power project completed construction and is fully operational, almost two months ahead of schedule. Jasper is located in South Africa's Northern Cape in a solar park that also includes the 75 MW Lesedi solar power project which came online in May, and the proposed 100 MW Redstone concentrated solar thermal power (CSP) plant featuring SolarReserve's CSP technology with integrated energy storage.
The Jasper Project generated about one million man-hours during construction, peaking at over 800 on-site construction jobs. As part of the South African Renewable Energy Independent Power Producer Procurement Program (REIPPPP), the project will set aside a percentage of total project revenues for Enterprise Development and Socio-Economic Development for the benefit of the local communities.
With over 325,000 PV modules, the Jasper Project will deliver 180,000 megawatt-hours of renewable electricity annually for South Africa residents – enough to power up to 80,000 households through a 20-year power purchase agreement with Eskom, the South African power utility company.
Ukraine to Alleviate energy Crisis Through Hydropower
In search of a way out of the energy crisis, Ukrainian experts claim to have found the solution ― hydropower. The auxiliary resource has been successfully compensating the increasing energy demand triggered by the lack of power capacity and fuel in the past months. High liquidity and sustainability were identified as some of the major advantages of hydroelectric energy.
"Prior to the anti-terrorist operation (ATO) in the east of the country and before the problems with energy supply, hydroelectric power stations produced electricity primarily during peak demand," said the director general of Ukraine's largest hydropower company, Ukrhydroenergo, Ihor Syrota. Now, 70 percent of the company's hydroelectric facilities operate at normal capacity around the clock, he noted.
Hydropower accounts for no more than eight percent of electricity generated in Ukraine, whereas the average rate around the world is roughly 15 percent. Nevertheless, Ukrainian experts are convinced that the country has enough resources to achieve this level.
Interestingly, on October 24, President of Ukraine Petro Poroshenko visited the Dniester pumped storage power plant (PSPP) where he witnessed the launch of two hydroelectric units with a total output capacity of 648 MW.
PJSC Ukrhydroenergo, Ukraine's largest hydropower company, includes nine power plants on the Dnieper and Dniester rivers― Kyiv, Kaniv, Kremenchuk, Dniprodzerzhinsk, Dnipro and Kakhovka hydroelectric power plants, Kyiv PSPP, Dniester hydroelectric power plant and Dniester PSPP. In 2014, the total installed capacity of the company hydro power units reached 5,401 MW.
Abengoa to Develop the Largest Biomass Power Plant in the World in Belgium
Abengoa has been selected by the electricity and gas company, Belgian Eco Energy (Bee), to develop the largest commercial plant in the world of new construction in Ghent (Belgium), which will produce 215 MW of electricity, being one hundred percent fueled by biomass (wood chips and agro-residues). The amount of the project will exceed 315 million euro.
Abengoa will be responsible for the engineering, design and construction of the plant. The project is expected to create up to 1,100 jobs during the execution phase.
For more information on Renewable Energy Projects and Update please visithttp://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
Headlines for Utility E-Alert – November 14, 2014
UTILITY E-ALERT
#1200 – November 14, 2014

Table of Contents
COAL – US
• Environmental Group alleges TVA Coal Ash Pollution is Leaking into River
• Duke announces Plans to begin removing Coal Ash from Four North Carolina Sites

COAL – WORLD

• Indonesia to build 5,000 MW Coal-fired Power Plant in Cilacap, Central Java

GAS/OIL – US

• Alliant proposing New Gas-fired Power Plant
• CB&I wins Contract for 760 MW Combined Cycle Gas-fired Power Plant
• JEA to shut Gas- and Oil-fired Unit 3

GAS/OIL – WORLD

• AUMA contracted to supply over 200 Actuators to aid Automation at Polish CCGT Power Plant

BIOMASS

• Detroit Developers plan a 34 MW Biomass Plant in Upper UP
• SMUD evaluating Biomass Gasification CHP Project
• Abengoa selected by Belgian Eco Energy to develop Biomass Power Plant in Ghent

NUCLEAR

• Nuclear accord signed with China
• Russia to build more Nuclear Reactors in Iran

BUSINESS

• Particulate Air Pollution Definitions and Goals Keep Changing
• Filter Media Sales to Exceed $12 Billion Next Year
• Huge Air Pollution Market Shift Away From OECD
• PG&E backs out of Oakley Power Plant Purchase
• Calpine completes Purchase of Fore River Energy Center in New England for $530 Million

HOT TOPIC HOUR

• “Power Plant Cooling” was Hot Topic on November 13
• Upcoming Hot Topic Hours

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McIlvaine Hot Topic Hour Registration

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

DATE SUBJECT
December
18 Boiler Feedwater Treatment


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Bob McIlvaine
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847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
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