FGD WORLD MARKET

UPDATE

February 2012

McIlvaine Company

www.mcilvainecompany.com

TABLE OF CONTENTS

MATS to Generate $4 Billion FGD Market in U.S.

Lots of FGD Startups for Doosan AE&E

B&W Awarded $75 Million Contract for FGD at R. M. Schahfer Coal-fired Power Plant

Sunflower’s Coal-fired Power Project Needs Environmental Review

Many projects are detailed in monthly updates under Industry Analysis in this Report’s Chapters. Click on the links below to view information on these projects.

Fossil and Nuclear Power Generation: World Analysis and Forecast

 

 

MATS to Generate $4 Billion FGD Market in U.S.

A last minute change in the MATS eliminated the inclusion of condensables. The 0.03 lbs/MMBtu is now just for discrete particles. The effect is to reduce the need for ultra high efficiency from a precipitator. This will translate into few fabric filters and more precipitator upgrades. The following chart represents the EPA projection prior to the particulate change. Also included are the McIlvaine projections after the change.

Operating Pollution Control Capacity on Coal-fired Capacity

(by technology) with the Base Case and with MATs

(2015 Total Capacity GW)

 

EPA Base
(GW)

EPA MATS
(GW)

Difference
(GW)

McIlvaine MATS
(GW)

$/ KW

Investment MATS
($ millions)

Wet FGD

180

174

(6)

10

$200

$2,000

Dry FGD

29

51

22

15

$50

$750

FGD Upgrade

0

63

63

30

$70

$2,100

DSI

9

52

43

30

$20

$600

SCR

146

146

0

20

$100

$2,000

ACI

7

148

141

100

$20

$2,000

FF**

90

191

101

50

$75

$3,750

ESP Upgrade

0

34

34

80

$20

$1,600

The MATS will generate significant revenues for air pollution control companies. New FGD plus upgrades will generate over $4 billion in revenues.

The impact of PM2.5 is not reflected in these forecasts. However, it is a factor which could boost the market from 2015 forward. Most utilities are not taking into account any state effort to make big SO2 reductions to lower fine sulfate particulate. There is a possibility that power plants in many areas could be forced to remove 98 percent of the SO2 just to meet State limits promulgated for the purpose of ambient particulate reduction. This would include States to the west of States not in compliance as well as the non compliant States.

Babcock & Wilcox Power Generation Group (B&W PGG) has secured a contract from Xcel Energy to design and supply equipment for a 544 MW coal-fired plant in Colorado. The company will deliver two spray dry absorber (SDA) systems and associated equipment for Xcel Energy's coal-fired Pawnee Generating Station. The SDA system will control SO2 emissions from the single-unit coal-fired power plant. B&W PGG will supply atomizers, a reagent preparation system, structural steel and commissioning of the project. Material delivery is scheduled for 2013, with tie-in of the SDA units anticipated for May 2014.

Lots of FGD Startups for Doosan AE&E

AE&E Lentjes enjoyed rising revenues, profits and employment in the 2005-09 period. A number of FGD systems are in startup or final design.

 

Country

City

Startup

Product

Flue Gas Volume

Percent SO2 Removal Efficiency

China

Nanchang

2008

FGD after hard coal-fired boiler

580,000 m3/h (std., wet)

85%

Czech Republic

Ledvice

2012

FGD after lignite-fired boiler

2,517,789 m3/h (std., wet)

97.28%

Czech Republic

Prunerov

2012

FGD

1,010,808 m3/h

98.22%

Germany

Karlsruhe

2011

FGD after hard coal-fired boiler

2,500,000 m3/h (std., wet)

95%

Germany

Lünen

2012

FGD after hard coal-fired boiler

1,965,000 m3/h

93.5%

Germany

Mainz Wiesbaden

2013

Limestone FGD FGD after hard coal-fired boiler

1,965,000 m3/h (std., wet)

94.5 %

Germany

Neurath

2008

FGD after lignite-fired boiler

2 x 4,580,000 m3/h (std., wet)

95%

Germany

Witzenhausen

2008

FGD after RDF-boiler

220,000 m3/h (std., wet)

92%

Romania

Turceni

2010

FGD after lignite-fired boiler

2,800,000 m3/h (std., wet)

96%

B&W Awarded $75 Million Contract for FGD at R. M. Schahfer Coal-fired Power Plant

Babcock & Wilcox Construction Company will build and install the FGD absorber vessels, and associated reagent slurry preparation and dewatering equipment at Northern Indiana Public Service Co.’s 1,943 MW R.M. Schahfer Generating Station in Wheatfield, Indiana. The assignment also covers procurement of structural steel. FGD systems will be installed on two of the four boiler units there, Unit 14 (465 MW) and Unit 15 (515 MW). The first installation will be completed in the fall of 2013, for Schahfer Unit 14, and Unit 15 will be completed in the fall of 2015.

Sunflower’s Coal-fired Power Project Needs Environmental Review

A judge has ruled that the $2.8 billion, 895 MW Holcomb coal-fired power plant cannot be built until there is an environmental review. According to the Associated Press, the recent decision follows a March 2011 ruling that said Rural Utilities Service, which was financially supporting the Holcomb power plant, failed to prepare the environmental impact statement (EIS) before approving plant owner Sunflower’s proposal to build two 700 MW plants on the site. (Note that a compromise in May 2009 with the state of Kansas allowed just one 895 MW plant to be built.)  The Kansas Department of Health and Environment extended the construction permit for the plant in July 2011, giving Sunflower another year to begin construction. There is no word on whether the current ruling will affect the construction timeline.

 

McIlvaine Company

Northfield, IL 60093-2743

Tel: 847-784-0012; Fax: 847-784-0061

E-mail: editor@mcilvainecompany.com

www.mcilvainecompany.com