September 2014 - Power Air Quality Insights 174

There are a number of industry and technology variables which will impact the markets for treatment and flow of air, gas, water and other liquids. Some of these game changers can affect the annual market by billions of dollars per year. This is the conclusion of the McIlvaine Company in Air/Gas/Water/Fluid Treatment and Control: World Market. (www.mcilvainecompany.com)

The energy industry has created a number of game changers. The most recent is a decision by China to convert massive amounts of coal into synthetic natural gas and gasoline. Over 200 billion cubic meters of synthetic gas per year could be created in the western and northern coal fields and sent to Beijing and other large cities to provide clean burning fuels.

An equal amount of syn gas will be further processed into chemicals such as methanol and into high quality gasoline. The impact on equipment markets is illustrated by a cooling tower order for $50 million which SPX received last week for one of the coal liquefaction plants. This plant will use only 0.2 percent of the coal envisioned for the entire program. So the total cooling tower market alone will be $25 billion.

Much of this program is very embryonic. It is possible that only a portion will be implemented. But based on previous Chinese initiatives, the goals are likely to be achieved.

Extraction of gas and oil by unconventional means continues to be another game changer. Shale gas/oil extraction in the U.S. continues to be a booming market. The question is whether other countries will follow suit and when will they do so.

Subsea processing is very dynamic with high pressures creating engineering challenges and many opportunities for suppliers of valves, pumps and materials. There are many technology game changers. The cooling tower design used by SPX for the liquefaction plant is a new design with minimum water loss. Wet, hybrid and dry options are now available. Air cooled condensers consume lots of energy but do not require water.

Another game changer is the catalytic filter. Removal of sulfur oxides, nitrogen oxides and particulate all takes place in one vessel. The heat from the clean hot gas can then be economically extracted.

Direct sorbent injection has been a game changer in the U.S. air pollution market. It will reduce the expenditures for capital equipment but increase the market for the sorbents.

The Asian Market for Electrostatic Precipitator (ESP) Systems, Repair Parts and Service Will Exceed $11 Billion In 2015

The Asian market for ESP repair and service will be $5.7 billion in 2014, whereas, the new systems market will exceed $5.6 billion. This is the conclusion in the latest update of Electrostatic Precipitator World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

2015 Electrostatic Precipitator Sales Revenues ($ Millions)
Segment	New Systems	Repair and Upgrade	Total
World	7,500	8,400	15,900
Africa	200	130	330
America	800	1,200	2,000
Asia	5,600	5,770	11,370
Europe	900	1,300	2,200

East Asia will be the largest market for new systems as well as for repair parts and service. The big question is whether China will continue to install precipitators on new coal-fired boilers. New Chinese particulate control regulations have led many observers to question whether electrostatic precipitators are capable of meeting these standards.

A worst case scenario would include retrofit of fabric filters to replace precipitators at existing plants. This is possible if enforcement efforts are strong and precipitator manufacturers are unable to improve the performance of their equipment.

India is also a difficult market to forecast. Particulate emission limits are not rigidly enforced. New coal-fired power plants will be equipped with precipitators. However, the expenditure is directly correlated to efficiency. A 99 percent efficient precipitator can cost fifty percent more than one obtaining 97 percent efficiency. Few existing plants would meet the emission levels enforced in the U.S. and Europe.

In NAFTA and Western Europe, the new system market will be small compared to repair and service. The reason is that both regions have very large installed bases of precipitators but small markets for new coal-fired generators, steel mills and pulp/paper plants. Furthermore, new power plants in both these regions are more likely to be equipped with fabric filters than electrostatic precipitators.

EDF Renewable Energy Acquires 175 MW Wind Project with a Power Purchase Agreement with Microsoft Corporation

EDF Renewable Energy (EDF RE) announced the company has secured a 96 percent stake in the 175 megawatt (MW) Pilot Hill Wind Project (formerly known as K4) from Orion Energy Group LLC (Orion) and Vision Energy LLC. The project benefits from a 20-year Power Purchase Agreement (PPA) with Microsoft Corporation.

Pilot Hill Wind Project, located 60 miles southwest of Chicago, IL, in Kankakee and Iroquois counties, will consist of wind turbines supplied by General Electric (GE) and Vestas. The wind project is situated on the same electric grid that powers Microsoft’s Chicago area datacenter. Physical construction on site is to commence shortly with commercial operation anticipated during the first quarter of 2015.

Minnesota Power Joins Forces with Military to Build 10 MW Solar Energy Project at Camp Ripley

Minnesota Power and the Minnesota National Guard will join forces to build a major solar energy project at Camp Ripley, the largest military base in Minnesota.

Duluth-based Minnesota Power, a division of ALLETE, Inc., and the Minnesota National Guard signed a memorandum of understanding outlining plans to build a 10-megawatt utility-scale solar energy array at the central Minnesota camp. The project will be the largest solar energy installation on military property in the state. The utility will also identify ways to help Camp Ripley reduce its energy usage by 30 percent and install backup generation for energy security.

Minnesota Power has been the energy provider to Camp Ripley, located near Little Falls, for decades. The 53,000-acre regional training facility was established in 1856. The solar project envisioned by Minnesota Power and the Guard, subject to regulatory approval, would cover nearly 100 acres of underutilized government property at the Camp with photovoltaic panels on racks.

Eltrion and Hitachi High Tech Announce Closing of Project Financing to Build 34 MW of Utility Scale Solar Projects in Japan

Etrion Corporation and Hitachi High-Technologies Corporation, a subsidiary of Hitachi, Ltd. announced the planned construction of 34 megawatts in Japan with financing arranged by Sumitomo Mitsui Trust Bank, Limited.

Shizukuishi is a 24.7 MW utility-scale solar PV power plant to be built in the Iwate Prefecture of Japan. Construction-related works are expected to commence in October 2014 and the solar project is expected to be operational by the end of 2016.

Mito is a 9.3 MW utility-scale solar PV power plant to be built in the Ibaraki Prefecture of Japan. Construction is expected to commence in September 2014 and the solar project is expected to be operational by the end of 2015.

The total project cost for both projects will be financed approximately 80 percent through project debt from SuMi Trust with an 18-year tenor. The remaining approximate 20 percent equity portion will be funded by Etrion and Hitachi High-Tech based on their respective ownership interests of approximately 87 percent and 13 percent.

Eltek announced it has won a contract from an Arab gulf region telecom carrier to supply its Flatpack2 Solar Autonomous power system to wireless base stations. The initial value of the three-year contract is $3.5 million with a potential to grow to more than $10 million.

“Our technology allows our customers to build telecom towers in remote areas with solar. This solution reduces CO2 emissions as well as the customer’s operating and maintenance costs for these sites,” said Bob Hurley, Vice President of EMEA Region at Eltek.

Eltek will provide its Flatpack2 Solar Autonomous system and deliver site build, installation and commissioning services. 100 sites will be deployed over the next six months and a further 200 sites will be deployed in 2015 and 2016.

Harmony Gold Mining Company and Selectra Bioenergy Project in South Africa Includes Viaspace Giant King Grass

Viaspace partner Selectra CC and the Harmony Gold Mining Company Limited of South Africa made a formal announcement of Harmony's implementation of the first bioenergy project on mining property in South Africa. The goal of the project is to grow energy crops―sugar beets and Giant King Grass―on contaminated mine affected lands in order to restore and rehabilitate the land. Gold-mining is a very large industry in South Africa and there are thousands of acres of mine tailings and mine affected land that need to be restored.

The plan is to use the beet and the king grass as feedstock for on-site biogas production at Harmony Gold's mine near Welkom in South Africa's Free State that will then be piped into the Harmony 1 Metallurgical plant where it will be burnt in the place of 'Polyfuel'—an HFO type fuel—in the thermal oil heaters.

· Springfield, MO Coal-fired Power Plant will invest $21 Million to meet MATS by April 2015

· Extension of Mercury and Air Toxics Standards (MATS) Compliance Deadline for Muskingum River Coal-fired Power Plant

· Georgia Power asking Permission from State Regulators to shut down 15 Coal-fired and Oil-fired Generators

· Toshiba Consortium wins EPC Contract for Two 1,000 MW Steam Turbine and Generators in Malaysia

· China to use Oasys Water Technology to treat Coal-fired Power Plant’s Wastewater from FGD

· Hubco to invest $1Billion in Coal-fired Power Plant in Karachi Sindh, Pakistan

· $50 Million SPX Cooling Tower Order for Chinese Liquefaction Market shows the Huge Potential

· Benco Energy to assist Federal Government of Nigeria in building a 700 MW Power Plant

“Monitoring for Gas Turbine Combined Cycle Power Plants” - Hot Topic Webinar on September 18 at 10:00 a.m. Central

This webinar will be both organizational and informative. It is all part of a whole knowledge system for gas turbine combined cycle plant operators--Gas Turbine and Combined Cycle Decisions . The free website and periodic webinars empower the operators to buy the best products rather than the most familiar or least expensive.

The webinar on the 18^th will try to answer the question: What are the most important and difficult decisions you will have to make regarding air and water monitoring equipment and services?

Kai D. Rondum, Product Manager for Boiler Water Treatment at Ashland Water Technologies

On August 28 we conducted a webinar on Degasification and Demineralization. One of the discussions was “Critical Measurements” by Jean Holz of Hach. She described which measurements were needed at each point in the boiler feedwater and condensate return system. When asked about optical vs. electrochemical choices, she replied that the range of choices depend on the point at which you are measuring and whether you need to measure a few ppb or some higher number. She observed that dissolved oxygen is measured in three accepted methods: Winkler Titration, Clark Cell Electrodes and Luminescence-based Optodes. LDO has proven to be the best choice except where you need to measure at very low levels.

These are the types of pertinent questions that the operators want answered. Others would be:

With fast start HRSGS and constant cycling what instrumentation solutions will counter some of the negative consequences of this operating mode?

What are the water chemistry issues facing GTCC operators which are unique to this type of power generation? Which require continuous measurement and which can be measured periodically?

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
September
11	Power Plant Pumps
18	Power Water Monitoring
25	Power Plant Water Treatment Chemicals
October
2	Precipitator Improvements
16	Power Plant CEMS
23	Sediment Removal and Remediation
30	Coal-fired Power Plant NO_x Reduction Innovations
November
6	Power Plant Cooling
13	Boiler Feedwater Treatment
December
18	Power Plant Pump Innovations