#1422– May 17, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Table of Contents
OVERVIEW
THE ROLE FOR THE UTILITY E ALERT
COAL – U.S.
COAL - WORLD
NUCLEAR
GAS TURBINES
WATER TREATMENT
PUMPS
VALVES
ELECTROSTATIC PRECIPITATORS
BUSINESS NEWS
OVERVIEW
The number 1422 means that we have been
publishing this Alert every week for 28 years.
The newsletters were initiated in 1974
but the Alert was created to first take
advantage of the fax machine and then later the
internet. Issue 352 was the first issue to be
digitized.
All issues since can be instantaneously
searched.
In 1991 McIlvaine editors attended the ICESP
precipitator conference in Beijing. At that time
China was one of the largest manufacturers
(not suppliers) of precipitators but
relying heavily on international technology.
McIlvaine visited the Lanzhou precipitator plant
at the time and saw a large R&D center with
several international designs of precipitators
being evaluated. However, this was one of only a
few achievements to be noted. Most of the
traffic was still by bicycle and the
infrastructure was far behind the developed
world.
Who would have believed that by 2019 China would
be operating five times as much coal fired power
and five times as much air pollution control
equipment as the U.S. and that it would be
selling this equipment throughout Asia and
Africa. The important position that the Chinese
hold in the international power plant combust,
flow, and treat
business is now a reality and one for
which a critical adjustment by international
suppliers is necessary.
The future for international suppliers is in
supplying unique and better products and
services. This means staying ahead of the
competition.
Neway has become a highly respected
supplier of high performance valves.
Companies such as Velan are going to have
to stay ahead
by developing products with lower total
cost of ownership.
Neway is also now a major international
supplier of high performance valves. It has the
same concerns about protecting intellectual
property as other major valve companies.
as Chinese combust, flow, and treat (CFT) high
performance product suppliers become
international they adopt the same goals as other
international suppliers.
Longking is already forging ahead with hybrid
precipitator/ baghouses but they are behind in
the development of catalytic filters which might
be the power plant choice of the future. Gardner
Denver and Ingersoll Rand have merged their
industrial groups but still only 15 percent of
their sales are in Asia. Chinese FGD system
owners have chosen higher priced Gardner Denver
blowers for FGD oxidation because of lower total
cost of ownership. But domestic Chinese
companies will be making progress with their own
designs. So innovation will be the key for the
new merged GD/IR combination in pursuing the
Asian market.
The future with China should be based on
collaboration and not confrontation.
Thermo Fisher has demonstrated that
Chinese employees can be trusted to protect
intellectual property rights. This confidence
has been demonstrated by locating the air
pollution research center in China. Since
entering the Chinese market three decades ago,
Thermo Fisher has established a strong
commercial, manufacturing and research and
development infrastructure, and is now one of
the largest companies serving the life sciences
market there. In addition to the new China
Innovation Center in Shanghai and consumables
factory in Suzhou, the company now has
operations in Beijing, Guangzhou, Hong Kong,
Chengdu, Shenyang and Xi’an, it employ more than
2,500 people. Thermo Fisher saw a 20 percent
growth in China between
2009-2014 and have invested heavily to
have a strong footprint throughout China.
THE
ROLE FOR THE UTILITY E-ALERT
International cooperation among system and
component suppliers will be the rising tide for
all
CFT ships. This alert covers all the power
generation technology which uses CFT (nuclear,
GTCC, coal, biomass, and geothermal). It covers
the components such as pumps, valves, controls,
instrumentation, chemicals, filter media etc. It
provides market insights by product and country
and also identifies important trends.
This weekly publication is included in
the
Utility Tracking System which tracks
individual plant activities as well as new
projects. This week a 20 page analysis of coal
fired power generation in every country
accompanied by an excel spreadsheet with MW of
capacity by country from 2018-2024 is being
added to the tracking system.
The
Utility E Alert is available separately for
$950/yr or as part of the $3020 tracking system
COAL – U.S.
U.S. Power Industry hurt by Tariffs
The U.S. electric power industry will be harmed
by the extra costs that would be incurred with
the placement of 10-25 percent tariffs on iron,
steel, and aluminum used in the electrical
infrastructure. Also there will be an impact on
finished electrical apparatus, equipment and
ancillary products manufactured with imported
steel and aluminum.
This harm is dwarfed by the harm to users of
power and power equipment exporters. Trade wars
with China and other nations make sales of power
plant equipment and services to those nations
much more difficult.
Chinese EPC contractors are the major specifiers
of valves, pumps, fans, and all the other power
plant equipment being installed in Africa,
Vietnam, Turkey and many other countries. Valve
companies such as
Metso
have made major investments in valve plants
located in China. As a non U.S. based supplier
they will have advantages over
Emerson and
Flowserve who are U.S. based.
There is a strong case to be made that is better
for
business to shape the international relations
rather than governments.
If there is a level playing field
business has a strong incentive to the
collaborative rather than confrontational
approach.
The philosophy that a rising tide floats
all boats is a better route to profitability
than tariffs and confrontation.
B&W
has had manufacturing plants in China for
decades. The
GE
coal fired boiler air pollution group is
primarily a Swedish based technology group (Flakt)
combined with some German acquisitions and the
Combustion Engineering U.S. based
technology. One insight at the McIlvaine stand
at a European power plant exhibition, was that
the stand personnel were able to guess the
visitor’s company e.g. Flakt more easily
than the country where the person was employed.
The ability to create an international corporate
identity and to create company loyalty
regardless of citizenship is a big motivator for
international success.
New York State and Others are Litigating to
reduce Upwind NOx Emissions
New York and other States have filed suit
against upwind States and EPA based on NOx
emissions from these upwind States and its
impact on the Eastern States.
EPA is using a cost threshold of only
$1400/ton. The threshold to determine economic
feasibility for NOx RACT in New York State is an
inflation-adjusted $5,000 per ton of NOx
reduced.
DEC has promulgated some regulations with
emission limits specific to a source category
(e.g., industrial boilers under 6 NYCRR Subpart
227-2), and others that require
facility-specific analyses to determine
technically feasible controls within this cost
threshold (e.g., cement and glass plants under 6
NYCRR Subparts 220-1 and 220-2, respectively.
The background for the suit includes 2017
emission estimates from upwind sources.
Some of the highest are shown below.
Details are found at
http://www.dec.ny.gov/docs/air_pdf/sips126petition.pdf
CFB Boilers in PA meet the NOx Emission Limits
Shiaw Tseng of
Graymont
provided
us with his analysis of the new Pennsylvania
emission limits. “Looking at the recent NOx
emissions data, I think all the CFB plants in
Pennsylvania meet the “Final Limit” of 0.16
lbs/MMBTU. I believe that all the PC-fired
boilers that have been retrofitted with SCR can
meet the “Final Limit” of 0.12 lbs/MMBTU when
the SCR is run at temperatures higher than 600OF
( >600OF), although the SCR
operating temperatures are not required to be
reported to the Pennsylvania Department of
Environmental Protection Agency or the U.S.
Environmental Protection Agency.”
COAL - WORLD
Coal Fired Power Plant Combust, Flow and Treat
Purchases will Exceed Those for Wind, Solar,
Nuclear, and Gas Turbine Plants
In the last twenty years an average of 50,000 MW
per year of new coal fired power plants have
been added to the world generation capacity.
Over the next ten years 40,000 MW per year of
new capacity will be added. This will be
partially offset by retirement of 13,000 MW per
year
of existing capacity.
Annual new plant investment will exceed $160
billion per year. The installed base of plants
has now reached 2 million MW and will increase
by 270,000 MW over the next decade. The
investment in the installed base exceeds $4
trillion. Potential for third party upgrades,
repair, service, and remote operation will
exceed $200 billion per year. This includes
major environmental upgrades in India and other
countries in Asia, Eastern Europe, and Africa.
The climate change issue is dominant in certain
countries but not relevant in others. The
McIlvaine Company has created a metric to assess
individual and national goals.
The metric is Quality Enhanced Life Days
(QELD).
A struggling
Pakistani farmer is offered the choice of
electricity or helping to protect the earth
fifty years from now.
He will assign a much higher QELD to
construction of coal plants in Pakistan than
will a wealthy American who is creating trusts
for his grandchildren.
Sustainability
Universal Rating System.
China is
making a
contribution to raising the standard of
living for poor citizens of many Asian and
African countries.
It is financing new power plants to
supply the electricity needed by industry and
families. Despite the investment in new coal
plants or in many cases because of it the
Chinese CO2 emissions have been
positively impacted by the reduction of
inefficient fossil and biomass combustors in
residential and commercial establishments.
Despite the claimed certainty relative to
greenhouse gas damage by both sides of the
issue, the science is not well understood. The
intense debate over SO2 emissions
which has been waged for half a century has had
many twists and turns.
McIlvaine testified before senate sub
committees as an EPA contractor at the time it
was thought that acid rain would kill forests
throughout the world.
It was later determined that this impact
would be much less than anticipated.
However, it was then determined that SO2
reacts with sodium and ammonia in the atmosphere
to form small particles with more impact on
health than any other pollutant.
It is not only the health impacts which are
unclear, there is considerable debate about the
costs of various solutions. The U.K.
already generates 11 percent of its
electricity from biomass combustion. The large
coal fired Drax plant has switched from coal to
biomass. A pilot program has been initiated to
sequester the CO2 with the claim that
this is the only way for a combustion process to
reduce CO2.
The slogan is “Suck the CO2
out of the air”.
Use of CO2 for enhanced oil recovery
and sequestration has been practiced for many
years. Proximity is the issue. SaskPower is
operating the first commercial coal fired power
plant EOR system at its Boundary Dam plant. The
use of CO2 to replace water in
hydraulic fracking looks very promising.
We could return to the 1980s era activity
in the U.S. where multiple small coal fired
boilers were constructed in the California oil
fields for EOR.
Longer term solar and wind will gather market
share in all regions of the world. In the short
term countries without natural gas, limited
solar and wind potential, and in urgent need of
electricity will continue to build coal plants.
Energy storage developments could alter
the picture. In any case in the last half of
this century coal will play a diminished role in
power. But over the next ten years there will be
substantial activity in many
regions.
Africa:
New coal fired capacity is planned for
seven countries with coal fired capacity and
eleven with no coal fired capacity.
South Africa, Egypt and Zimbabwe are
planning 40,000 MW of additional coal fired
capacity. In many of the African countries the
first coal plants will be owned by and for
mining companies.
Asia:
China and India are planning more than
300,000 MW of new coal fired capacity. Vietnam
is moving forward with 40,000 MW of capacity
followed by Indonesia with 30,000 MW and
Bangladesh with 25,000 MW.
China, South Korea and several other
Asian countries have significant coal to
chemicals programs.
Eurasia:
Georgia, Kazakhstan and Russia have more
than 60,000 MW of coal plants in operation and
have plans for an additional 10,000 MW.
Europe:
Despite the pressure from the EU,
thirteen countries have new coal fired power
plants in the planning stage. The total in
Turkey is over 30,000 MW, Poland, 9,000 MW, and
Bosnia-Herzegovina, 4000 MW.
Americas: No new plants are planned in the U.S
and Canada. Four Latin American countries are
planning a total of 4,000 MW of new coal fired
capacity. However, the continent will continue
to operate nearly 300,000 MW of coal fired units
at least over the next fifteen years.
The purchases of combust, flow and treat
products and services by coal fired utilities
worldwide will continue to exceed those by any
other fuel source. In part this is because
sources other than nuclear spend much less per
MW for CFT products and services.
The new 30 page analysis from which this article
was excerpted appears in
42EI Utility
Tracking System.
This system also provides forecasts of new
capacity for each plant, each owner, and by
country.
Specific forecasts by plant and owner for
purchases of valves, pumps, chemicals,
filtration equipment, FGD systems, NOx
control systems, fabric filters, precipitators,
cooling towers, fans and other power plant
products are displayed in the McIlvaine market
reports shown at
http://home.mcilvainecompany.com/index.php/markets
South African Environmental Group
has filed Suit to Block Increases in
Allowable Emissions for SO2 Emitters
Recent changes to the minimum emissions
standards double the amount of SO₂ - from
500mg/Nm3 to 1000mg/Nm3.
But environmental justice group
groundWork, which is represented by the
Centre for Environmental Rights (CER),
is calling on the court to set aside the
government’s plan, saying these levels will
threaten already heavily polluted areas where
coal pollution kills thousands of people every
year.
The group is contesting the lack of public
participation, given that the proposed
amendments to the MES were not published for
public comment as lawfully required by the Air
Quality Act.
“If the court agrees with groundWork, large
emitters of SO₂ will have to act immediately to
reduce pollution or they could face both
criminal and civil action for violating the
law. When pressed on their motivation to weaken
emission standards, the department of
environmental affairs said it is not yet ready
to comment.
The MES, which was first passed in March 2010,
gave air pollution facilities five years to meet
certain emission standards and ten years to meet
stricter conditions by 2020. But Africa’s two
biggest polluters, Eskom and Sasol, have
consistently evaded the stringent air pollution
standards with repeated requests for
postponements for compliance.
In 2015, both companies were granted a five-year
postponement from compliance to the MES,
allowing them to continue emitting toxic
pollutants that exceed SA’s MES. And this year,
Eskom
has applied —for a fourth time — for yet another
set of postponements, as well as some complete
suspensions.
Eskom
and Sasol
have been arguing that the cost of
ensuring compliance with the MES is not worth
the benefit. The environmental affairs minister
Nomvula Mokonyane has stated her intention to
oppose groundWork’s case with an answering
affidavit by the end of the month.
Twenty-five Coal Plant Precips in Vietnam are
meeting 98% Efficiency
Phạm Trọng Thực, deputy director general of the
Industrial Safety Technique and
Environmental Agency under the Ministry
of Industry and Trade, was recently interviewed
by
Công Thương (Trade and Commerce) newspaper on
the national plan to develop coal-fired power
plants.
What is the current state of Vietnamese coal
power plants?
Việt Nam has 25 coal power plants operating
commercially. Their gas emissions, solid
industrial waste and environmental issues have
been closely monitored in accordance with
Vietnamese standards issued by the Ministry
of Natural Resources and Environment (MONRE).
Focus is placed on three main factors, namely
suspended particulate matter, nitrogen oxides (NOx)
and sulphur dioxide (SO2). At
present, all twenty-five coal power plants have
installed suspended particulate matter systems
using CORONA technology. Thanks to the
technology, electrostatic precipitators (ESP)
are used to capture up to 98 per cent of
particulate matter. For NOX and SO2,
they have also applied advanced technologies to
cut down their negative impacts on the
environment.
Industrial solid waste, including flying dust
and coal ash, has been used to make fly ash
bricks for use as construction materials.
What measures has the Industrial Safety
Technology and Environmental Agency issued to
minimize negative impacts on the environment
from these power plants?
Our agency has applied many measures, including
the legal framework towards revising of the 2014
Environmental Law on the development of
environmental technology and standards.
We have also given advice to the
Ministry of Industry and Commerce to
develop legal documents to use fly ash or coal
ash to make bricks or to produce fertilizer. In
the future, we plan to hold international
workshops to share experiences inside and
outside Việt Nam on the use of waste to make
bricks or produce fertilizer.
However, the quality of the fly ash and coal ash
from Vietnamese coal plants is not high. This
has presented a big challenge for the
consumption of the bricks. The 2014 Law on
Environment contains articles on the
environmental industry, yet there is no detailed
guidance on the responsibilities of concerned
ministries and businesses.
Though the Ministry of Industry and Commerce (MoIT)
is in charge of monitoring the imports and
exports of industrial products – an area which
has great potential for environmental impacts –
Decree No.38/2015/NĐ-CP dated April 24, 2015 did
not have any article or provision specifying the
MoIT’s responsibility on its environmental
management of import-export activities.
What should the Government do to overcome the
loopholes in environmental laws?
The first thing the Government should do is
revise the 2014 Environmental Law to develop the
technical standards and norms for equipment used
in environmental treatment, and to step up
monitoring and law enforcement activities. At
the same time, the National Assembly should
consider a resolution on the development of
thermo power to ensure energy security while
still being able to protect the environment –
particularly to control fly dust and coal ash as
well as gypsum and plaster.
The Government should revise as soon as possible
Decree No.38/2015 to add specific rules
governing of fly dust and coal ash. I also want
the Government to adopt policies to limit the
use of baked bricks.
Last but not least, we should launch
communication campaigns on the operation of
these power plants and the use of construction
materials from waste to help the general public
understand their benefits in environmental
protection.
Drax considering converting FGD Scrubbers to CO2
Capture
We have been writing about the Drax project in
the U.K to “suck CO2 out of the
atmosphere” by combining
biomass firing and CO2
sequestration. An article in
Future
Power Technology
provides some details on the project.
Drax started working with researchers at
C-Capture in 2017 and announced the pilot in May
2018, this year of collaboration previously
allowed it to ensure the solvent developed was
compatible with the biomass flue gas at the
station. Together the company and researchers
completed a lab-scale study into the feasibility
of re-utilizing the flue gas desulphurization
(FGD) absorbers at the power station.
“FGD equipment is vital for reducing sulphur
emissions from coal, but it is no longer
required to control sulphur on four of the
generating units at Drax that have been upgraded
to use biomass, because the wood pellets used
produce minimal levels of sulphur,” explains
Carl Clayton, research engineer at Drax.
https://power.nridigital.com/future_technology_may19/draxs_great_biomass_carbon_capture_experiment
India to co-fire Biomass at All Plants
India’s largest energy producer,
NTPC,
said it will start biomass co-firing across all
its coal-based thermal power stations.
The company, which already uses 7 percent blend
of biomass for co-firing at its Dadri power
plant, aims to switch around 5 percent of all
its generating capacity from coal to biomass.
The move is a ‘bold’ one creating benefits on
several fronts, according to Harminder Singh,
power analyst at
GlobalData.
“The driving force behind this decision by
state-owned NTPC is to reduce the burning of
crop residue by farmers after harvesting, which
creates high levels of pollution in nearby
cities,” Singh explains.
“Now, the farmers will have a point where they
can sell their residue biomass and get a price
for it and, conversely, NTPC will reduce the
emissions of its power plants.”
NTPC is – significantly – the first coal-power
company in India to co-fire with biomass. Its
decision is supported by government policy that
advises, but does not mandate, that all such
plants should co-fire with biomass by around 5
percent-10 percent in a bid to reduce emissions
https://power.nridigital.com/power_technology_mar19/indias_bold_move_towards_emission_control
2000 MW Coal Plant under discussion in Australia
A deal has been signed to develop two new
coal-fired power stations near Kurri Kurri in
the New
South Wales Hunter
region, according to a Hong Kong-based
investment firm.
Local authorities
have been briefed about the unusual plans
to turn the failed Hunter economic zone into a
2,000 megawatt coal power plant.
In
a statement to the Hong Kong stock exchange late
last week, the investment company
Kaisun Holdings announced it had signed
a memorandum of understanding with a Chinese
state-owned power provider and a tiny Australian
private company to build two 1,000MW power
stations.
Kaisun works mainly in central Asia and
describes itself as a “belt
and road” expert.
The company is based in Hong Kong but
incorporated in the Cayman Islands.
It said the heads of agreement had been signed
with a subsidiary of China
Energy –
part of the company’s engineering group – and
Cavcorp, a company worth $25,000 on
paper and wholly owned by the Parramatta
businessman Frank Cavasinni.
NUCLEAR
China approves Four New Nuclear Plants
Beijing has approved the construction of four
new nuclear reactors using a domestically
developed design, according to Chinese news
reports. If confirmed, the deployment of China’s
Hualong One reactor would end a more than
two-year hiatus in approvals.
The reactors are slated for two new sites along
China’s coast:
CNNC’s
Zhangzhou power project in Fujian and
CGN’s
Huizhou Taipingling project in Guangdong. Both
projects had been planned and approved by
Chinese authorities with
Westinghouse’s AP1000 reactor design,
which promises safety advances such as passive
cooling. That means it stores water above the
reactor, leveraging gravity to keep the plant
cool should the pumps fail.
But Westinghouse’s flagship AP1000 projects have
been plagued by cost overruns and delays. The
first AP1000 began operating in China last year,
four years behind schedule, and South Carolina
utilities abandoned a pair of partially built
AP1000s after investing $9 billion
All the main equipment has now been installed at
the first of two demonstration Hualong One units
under construction at the Fuqing site in China's
Fujian province. Installation of the steam
generators has begun at the second unit.
National Nuclear Corporation
(CNNC) said the pumps have a "complex and
special structure". The components for the pumps
were shipped to the construction site for
assembly. The main pump components for unit 5
arrived packed within more than 150 separate
boxes. The unpacking of these boxes was subject
to rigorous inspection, CNNC said.
The first main pump components were installed on
10 December. CNNC noted that all the main
equipment of unit 5 at the plant is now in place
within the nuclear island. Meanwhile, the
installation of the first of three steam
generators has begun at unit 6 of the Fuqing
plant.
The component - weighing about 365 tonnes - was
designed by
China
Nuclear Power Institute and manufactured
by
Dongfang Electric Corporation. The steam
generator was delivered to the construction site
December 20th and then moved into the reactor
building on December 23rd in preparation of
installation. Installation of the reactor
pressure vessel at unit 6 was completed on
December 10. Fuqing 5 and 6 are scheduled to be
completed in 2019 and 2020, respectively.
Construction of two Hualong One (HPR1000) units
is also under way at
China
General Nuclear's Fangchenggang plant in
the Guangxi Autonomous Region. Those units are
also expected to start up in 2019 and 2020. Two
HPR1000 units are under construction at
Pakistan's Karachi nuclear power plant.
Construction began on Karachi unit 2 in 2015 and
unit 3 in 2016; the units are planned to enter
commercial operation in 2021 and 2022. The
HPR1000 has also been proposed for construction
at Bradwell in the UK, where it is undergoing
Generic Design Assessment.
Egypt’s First Nuclear Plant to be operating by
2026
Egyptian Nuclear Regulation and Radiological
Authority (ENRRA)
has granted the
Nuclear Power Plants Authority (NPPA)
site approval permit for the construction of
Egypt’s first nuclear power plant.
The construction of El
Dabaa nuclear power plant (NPP) is
planned to take place 250km west of Alexandria
city in Matrouh Governorate on the Mediterranean
coast, and is expected to begin in 2020, with
commissioning expected in 2026.
The proposed plant will be developed by Russian
State Atomic Energy Corporation
(ROSATOM) under the ownership of the
Nuclear Power Plant Authority (NPPA) of Arab
Republic of Egypt, which will also operate it.
In 2015, the
Ministry of Electricity and Renewable Energy of
Egypt signed an agreement with Russian
state-owned company ROSATOM to build, finance
and operate the nuclear plant, and notices to
implement the previously signed contract were
signed on December 2017.
According to Rosatom, the plant will consist of
four Russian-designed VVER-1200 pressurized
water reactors, which are capable of producing
1.2GW each. The first unit is expected to begin
commercial operations in 2026, while
commissioning of the remaining three reactors is
scheduled for 2028.
The VVER-1200 reactor is a third-generation
pressurized water reactor that is fully
compliant with all international
safety and post-Fukushima
IAEA requirements. It is designed
to withstand the crash of a 400t airplane or
earthquakes up to an intensity of 9 on the
Richter scale.
Other than low regional seismic activity and
sufficient cooling water supply, the proposed
site is in close proximity to necessary
infrastructure including rail, road and power
transmission interconnections.
A financing agreement signed between the Finance
ministries of Egypt and the Russian Federation
indicates that Russia will fund approximately 85
percent of the construction cost of the project
through a US$25bn loan granted to Egypt, while
the remaining 15 percent will be raised by Egypt
from private investors. The loan is repayable
over a period of 22 years at an interest rate of
3 percent a year.
GAS TURBINES
South Field Energy Breaks Ground for
1,182-megawatt Energy Facility
South Field Energy LLC
announced its groundbreaking for a
1,182-megawatt, low-carbon combined-cycle
natural gas electric generating facility
in Columbiana County, Ohio.
The facility is
Advanced Power's second such project in
northeastern Ohio and third major infrastructure
project in the United States. The South Field
Energy project is similar to Advanced Power's
Carroll County Energy, a 700-megawatt natural
gas electric generation facility that began
commercial operations in December of 2017. The
South Field Energy project is a significant
stimulus for the economy of Columbiana
County and surrounding communities.
The project is a $1.3 billion capital investment
that will generate up to 1,000 construction jobs
over the construction period. When completed,
the facility will employ approximately 25
full-time employees in engineering, technical,
operation, management and administrative
positions. The new facility is located on less
than 20 acres of land that is part of a 150-acre
parcel three miles from the Village of
Wellsville.
New Natural Gas-Fueled Generating Stations
provide Power to Upper Peninsula of Michigan,
allowing Retirement of Presque Isle Power Plant
WEC Energy Group's
subsidiary,
Upper
Michigan Energy Resources (UMERC), began
commercial operation of the A.J. Mihm Generating
Station and the F.D. Kuester Generating Station
in the Upper Peninsula of Michigan March 31. The
new natural gas-powered generating stations
replace the energy from the company's
coal-fueled Presque Isle Power Plant that was
retired the same day.
WEC Energy Group funded the $275
million investment. Half of the investment will
be recovered through a 20-year agreement with
Cliffs Natural Resources. The other half
will be recovered in retail electric rates.
The state-of-the-art generating stations are
expected to save UMERC customers nearly $600
million over the next 30 years. The new stations
will eliminate the need for additional
transmission capacity as well as upgrades that
would have been needed at the aged Presque Isle
Power Plant if it had continued to operate.
NOVI Energy selects GE’s HA Gas Turbine for
Charles City Combined Cycle Plant in Virginia
Building strong momentum in North America and
around the world,
GE
Power announced that family-owned
independent power producer
NOVI
Energy has selected GE’s record-setting
HA gas turbine technology for the Charles City
Combined Cycle Plant planned for construction in
Charles City County, Virginia.
Two of GE’s 7HA.02s will power the 1,060 MW
project in the greater Richmond area that will
provide electricity to the grid in the eastern
United States. The electricity produced by the
plant will be the equivalent needed by more than
750,000 households. Additionally, the project
will help support the growing data center
industry in Virginia, providing reliable
electricity to serve this critical
infrastructure. This technology selection will
also utilize GE steam turbines, HRSGs and
associated balance of plant equipment.
Once completed, the plant would supply
electricity to the PJM regional transmission
organization which provides electricity to a
large portion of the eastern United States.
Expected to be completed by 2022, the plant
would also create up to 1,000 jobs during the
peak construction phase. Currently, the Charles
City project has secured all of the permitting
necessary to proceed, and NOVI and their
financial sponsor Ares Management are actively
moving the project towards commencement of
construction.
Summit signs 22-year PPA for upcoming 583 MW Gas
Power Plant; GE to co-develop Plant in
Bangladesh
Adhering to their commitment to provide reliable
and affordable electricity in Bangladesh,
Summit and
GE
Power announced they will proceed with
the co-development of Summit Meghnaghat II, a
583 MW combined cycle gas power plant at
Meghnaghat, near Dhaka, Bangladesh. The
announcement follows the signing of a 22-year
Power Purchase Agreement (PPA) between
Summit Meghnaghat II Power Company Limited
(SMIIPCL), a subsidiary of Summit Group,
and the
Bangladesh Power Development Board (BPDB).
SMIIPCL also signed several other agreements,
with the
Government of Bangladesh,
Power
Grid Company of Bangladesh (PGCB),
Bangladesh Petroleum Corporation (BPC)
and
Titas Gas Transmission and Distribution Company
Limited.
The power plant is expected to be operational by
2022 and will generate the equivalent
electricity needed to supply up to 700,000 homes
in Bangladesh. Summit and GE Power signed the
equipment and engineering, procurement, and
construction (EPC) scope of the project in 2017,
while the services agreement was signed in 2018.
Together, the two agreements are worth
approximately $390 million.
GE Power will be providing the turnkey solution
for the Summit Meghnaghat II power project, and
is responsible for the design of the facility,
supply and installation of the equipment and
commissioning works. The equipment being
provided by GE includes one 9HA.01 gas turbine,
one heat recovery steam generator (HRSG), one
steam turbine generator, condenser and
associated systems, as well as balance of plant
(BOP) solutions. Additionally, GE will provide
services including the maintenance and repairs
of the power generation equipment at the
facility for a period of 20 years, helping to
sustain the efficiency, reliability, performance
and availability of the plant. It will also
result in a higher plant load factor (PLF) of
the facility over the years, ensuring the lower
cost of generation of electricity.
WATER TREATMENT
Chinese researchers have improved methods of
separating lithium from magnesium and other
metals using membranes and related technology.
McIlvaine has written previously about
the extraction of rare earth elements (REE’s)
from flyash and pointed out that the approach by
the Chinese government and DOE has overlooked
what could be the most economical process which
could be dubbed “in situ REE feedstock”
production.
This is being unintentionally produced in
two stage scrubber systems such as those
installed at
Philadelphia Electric. The first stage
captures the flyash and HCl and can provide a pH
1 hydrochloric acid slurry containing the flyash.
The new Chinese methods may be equally
applicable for separating the metals in the FGD
generated feedstock.
The interest in lithium from coal is increasing
with a number of papers on the subject. Coal
could become a major source of lithium,
according to a team led by professor Shenjun Qin,
of
Hebei University of Engineering (Handan,
China; www.hebeu.edu.cn). From available data,
the concentration of lithium in most coal varies
between 10 and 50 µg/g. For example, the
concentration of lithium in flyash samples is
between 65 and 287 µg/g in South Africa and an
average of 46 µg/g in China. Using two
analytical techniques — inductively coupled
plasma mass spectroscopy (ICP-MS), and ICP
atomic emission spectroscopy (ICP-AES) — the
team has found Li dispersed, and even
anomalously enriched in coal deposits. But in
general, it says the analysis for Li has been
largely neglected, with no specific discussion
reported regarding Li concentrations in coal and
coal ash.
McIlvaine has a market report on the lithium
production market.
GEA is a
major supplier of the centrifuges and
other extraction equipment used in the processes
being employed in Australia and Chile.
Saltworks offers EDR System with New Sensor for
FGD Chloride Reduction
Saltworks,
a Canadian company supplying desalination and
zero liquid discharge systems has shipped a
pilot Flex EDR system to the southern United
States for the purpose of cleaning up coal fired
power wastewater.
Saltworks'
system will use proprietary IonFlux ion
exchange membranes to selectively remove
chlorides, enabling internal recycling of water.
The innovation is partially enabled by a new
ion-specific sensor, developed by Saltworks,
that can also help miners and the oil and gas
industry measure and adjust to sulfate or
calcium load in real time The product is built
on the backbone of 50-year-old Electrodialysis
Reversal (EDR) technology, which is the second
most widely used membrane desalination
technology, with full scale production already
in place. After completing its U.S. pilot, the
plant will be sent to China.
The AirBreather is a waste heat driven
evaporator-crystallizer for
produced water disposal from shale gas
extraction. With SDTC’s investment, the
AirBreather will be demonstrated in industry and
scaled up for commercial roll out, where it can
improve the competitiveness and sustainability
of Canadian natural gas.
Sustainable Development Technology Canada (SDTC)
is a foundation created by the Government of
Canada to support Canadian companies with the
potential to become world leaders in their
efforts to develop and demonstrate new
environmental technologies that address climate
change, clean air, clean water and clean soil.
PUMPS
SPX Flow Inc to divest its Power and Energy
Business.
SX Power and Energy
specializes in mission critical severe duty
pumps, valves, filtration products and
aftermarket parts and services for energy and
power customers. The brands included in the
divesture process are
M&J
Valve,
ClydeUnion Pumps,
S&N
Pumps,
Copes-Vulcan,
Dollinger,
Plenty,
Airpel and
GD
Engineering. The business has annual
revenues of around US$500 million and is headed
up by president José Larios.
SPX Flow intends to focus its growth strategy on
building a premier process solutions enterprise
around its current Food and Beverage segment,
Industrial segment and
Bran+Luebbe metering pumps product line.
“After a thorough strategic review of our
product lines, core competencies and customer
segments, we have determined that there are
nuances in the value proposition to customers in
highly specific process applications as compared
to flow control applications,” said Marc
Michael, president and CEO of SPX Flow. “To best
serve customers in both these areas, we have
chosen to narrow our strategic focus on
differentiated process technologies and to
pursue a divestiture of our Power and Energy
business.”
“By divesting Power and Energy, we will reduce
our exposure to cyclical energy markets and
devote our full attention on building a premier
process solutions enterprise with high quality,
recurring revenue streams, mid-teens EBITDA
margins and double-digit return on invested
capital,” added Michael.
With annual revenue of around US$1.6 billion,
Process Solutions is comprised of the current
Food and Beverage and Industrial reportable
segments and the Bran+Luebbe metering pump
product line. Brands include APV,
Waukesha-Cherry Burrell, Lightnin, Gerstenberg
Schroeder, Seital, Bran+Luebbe, Hankinson, Power
Team and Johnson Pump. These brands primarily
serve the sanitary and industrial markets, with
a concentration in food and beverage, chemical,
pharmaceutical and general industrial markets.
Dwight Gibson, currently president of Food and
Beverage, will lead one combined commercial
team. He will work closely with Ty Jeffers, vice
president of Global Manufacturing and Supply
Chain, to optimize and leverage the company’s
lean approach, “Pathway to Excellence”, and to
modernize factories and create capacity for
growth.
Power Industry will Spend $ 3.2 billion for
Pumps Next Year
Power plant purchasers will spend $3.2 billion
for pumps next year. Sixty-seven percent of the
purchases will be for Asian power plants.
Decades ago many pump decisions for Asian power
plants were made in other regions by
international power plant developers. Today many
Chinese power plant developers are making pump
decisions for Africa, the Middle East, and
Turkey.
Most power plant operators including those in
Asia are making decisions based on lowest total
cost of ownership. This provides a window of
opportunity for international suppliers with
better products.
The challenge for international pump companies
is to reach the decision makers. New plants are
being built in seven African countries which
already have some coal fired capacity. Another
eleven African countries will be installing coal
fired power plants for the first time. Vietnam
is planning to move forward with an additional
40,000 MW of coal plants. Indonesia will add
another 30,000 MW while Bangladesh with Chinese
help is adding 25,000 MW of coal plants.
More money will be spent for pump replacement
and repair than for pumps at new plants. There
are already 2 million MW of coal fired plants
installed worldwide. The base will increase by
270,000 MW in the next decade even with the
retirements in some countries. An additional
pump market is created by SO2 emission
limits being applied in India and other Asian
countries. The new regulations are also being
applied in Africa. This means large FGD slurry
pumps will be installed at many existing plants
as well as at most new plants.
Regulations regarding water pollution are
forcing plants to install treatment systems
which include pumps needed to move the
wastewater through filtration equipment.
The top fifty owners will buy more than 50
percent of all the power plant pumps. The top
dozen will spend $200 million or more on pumps
each year.
More than 8,000 owners will spend at least
$70,000 for pumps each year. McIlvaine can
supply forecasts for pump purchases for 1300
owners operating 10,000 plants burning coal for
either electricity generation or for industrial
use. Many of the new plants in Africa are solely
for providing power for mining operations. Pump
purchase forecasts can also be supplied for
thousands of gas turbine, biomass, and
geothermal power plant owners. Detailed
forecasts are also available for nuclear pump
purchases.
There are multiple tracking systems to identify
each new project. A weekly Utility E-Alert
provides the latest insights. The individual
services which can be combined in a package are
linked below.
59EI Gas Turbine
and Reciprocating Engine Supplier Program
A whole program built around individual owner
forecasts’ is explained at www.mcilvainecompany.com
Bob McIlvaine can answer your questions at 847
226 2391 or
rmcilvaine@mcilvainecompany.com
Avingtrans moves Into Profit As Hayward Tyler
Takeover Delivers
Avingtrans PLC
swung to an interim profit with its
Hayward Tyler Group acquisition helping
to drive revenue growth. Revenue for the six
months to November 30 was GBP47.7 million, from
GBP26.9 million a year prior, helped by both
Hayward Tyler as well as organic growth of 11
percent.
Avingtrans, which makes equipment and systems
for the energy and medical sectors, bought
Hayward Tyler in a reverse takeover in the
summer of 2017 in an all share deal.
"The former Hayward Tyler Group businesses have
continued to improve financially
post-acquisition and we are engaged in the
investment and development phase of our stated
PIE strategy," said Chair Roger McDowell.
"This will enable us to fully realize the
underlying value of the Hayward Tyler and
Peter
Brotherhood businesses. Our main
business units are performing well. We continue
to make good progress with new business -
especially in nuclear," he continued.
Hayward Tyler is a recognized worldwide leading
manufacturer of glandless wet stator circulating
pumps for the power industry.
The company invented
the technology over 60 years ago and now
have more than 2,300 units operating in both
nuclear and conventional fossil-fueled power
generating plants. These include GT combined
cycle, fluidised bed, and coal gasification
installations.
Hayward Tyler has secured two new contracts
worth over US$6m from U.S. and South Korea
customers. The contracts are to provide critical
pumps and spare parts to nuclear reactors in the
U.S. and South Korea for Essential Service Water
pumps. The U.S. contract is with one of the
country’s leading nuclear operators and is a
significant increase in size of contract for
this particular customer, so represents an
important breakthrough for the company. Hayward
Tyler has been an original equipment supplier of
nuclear pumps and spare parts to the global
nuclear industry, including
Korea
Hydro & Nuclear Power, for over 50
years.
These latest orders, for spare parts and pumps
to upgrade and refurbish existing nuclear power
plants, takes the total value of nuclear orders
received this financial year to US$14m. Hayward
Tyler Inc., located in Vermont USA, continues to
support global nuclear operations with parts,
units, and technical support through its team of
nuclear professionals and the underlying nuclear
quality program.
Mike Turmelle, Managing Director of the
Engineered Pumps and Motor division said:
“Support to nuclear power station operators
across the globe is a key part of the Hayward
Tyler business. We are dedicated to supporting
our international nuclear customers to drive
down operating cost as well as increasing the
reliability and safety of the systems that our
pumps operate in. The nuclear industry must
continue to deliver affordable, safe, low carbon
energy as part of a balanced global energy
solution. The whole team at Hayward Tyler are
proud to be part of the nuclear supply chain and
this order is testament to their dedication,
professionalism and long-term commitment to the
industry.”
Peter Brotherhood is a world leader in
designing, manufacturing and servicing steam
turbines and turbine generator (TG) sets up to
40 MW. With thousands of steam turbine
installations in more than 140 countries
VALVES
Valve Cost of Ownership reduced at Canadian
Power Plant
At a Canadian power plant
Armour Valve provided a program to
improve valve total cost of ownership .As a
result, the power plant valves could be
inspected, maintained, repaired and replaced in
one week instead of four weeks. Every year,
valve performance consistently improved. The
valve repair success rate increased from less
than 50 percent to greater than 90 percent. In
the most severe applications, valve life cycle
improved from six months to two years. Average
valve life cycle improved to three to 10 years,
with some valves performing far beyond that.
Today, with more than 500 valves installed at
the power plant, valve performance has improved
so dramatically that Armour Valve only needs to
visit the plant for routine valve maintenance
every two years.
Over the lifetime of this power plant, the
estimated savings achieved from proper valve
specification, installation and maintenance is
millions of dollars. These cost savings,
combined with the dramatic decrease in job
stress, should make the owners and operators of
any power plant rethink their strategies.
Diligent valve maintenance may not be glamorous
and is certainly easier said than done, but it
is well worth the investment. It is a classic
example of “pay some now or pay greater later.”
https://www.flowcontrolnetwork.com/power-plant-valves-proper-specification-maintenance/
The Valve Industry in China has changed since
This Article was Written
This undated
Valve
World interview sets a point in time where
the procurement of valves for use in power
plants in China was still based on cost.
Quality, safety and industry standards were
secondary issues.
Valve
World spoke with Mr Zhang Chuanhu of the
Valve Standardization Technical Committee of
China
Electricity Council, amongst other
roles.
ZC: I am currently the vice chairman of the
Valve Standardization Technical Committee of
China Electricity Council, member of China
Electricity Boiler and Pressure Vessels
Qualification Exams Committee, professor and
examiner at China National Quality Supervision
of Valve Security and Maintenance Personnel
Examination and Certification, and consultant of
Thermal Power Generation magazine. I am also the
general manager of
Wuhan
Huake Energy Environment Science & Technology
Co., Ltd.
VW: What is your opinion on the development of
the current Chinese market and power industry
over the past years?
ZC: I have been in the power station valves
industry for more than 21 years, and clients are
generally very serious about boiler safety
valves, control valves, and other high-end
valves. The end users in power industry usually
use international brands, but they still favor
the strategy of lowest-price bids, which leads
to many international brands with different
levels of quality bidding for the same project.
Then after the valves are put into operation,
the operators have to repurchase new valves at
which time plants often then switch to higher
end imported products. Competition for lower
prices has brought bad consequences to the
safety and stability of operating machines
economically.
The Tale of Two Valve Companies
Chinese valve companies and Chinese valve
purchasers run the gamut in terms of honesty and
willingness to honor intellectual intelligence
assets.
Thermo Fisher has demonstrated faith in
their Chinese workers by locating all their air
pollution research and development in China.
Neway Valve is an example of a
Chinese valve company which has become a trusted
international supplier of the most critical
valves used in the nuclear industry.
China
Valves is possibly at the other end of
the spectrum.
On April 23, 2019, a Nevada judge issued a
warrant for the immediate arrest of Siping Fang,
Chairman of Nasdaq-delisted China Valves
Technology, Inc. The judge's order
instructed that the arrest warrant be lodged
with law enforcement agencies including Interpol
and the National Crime Information Center.
Fang had served as representative of the
10th and 11th People's
Congress of Henan Province. Fang also served as
Member of the 12th Standing Committee
of Kaifeng Municipal People's Congress. A
prominent businessman, Fang was for two terms
Chairman of the
PRC
Valve Industry Association.
More than 50 U.S. listed Chinese companies
including China Valves were either
delisted or halted from trading in 2011 and
2012 based on claims of fraud
and other violations of U.S. securities laws. A
number of others were the target of short
sellers and changed auditors more than once in
some cases.
On May 13, 2015, the Honorable Reggie B. Walton
of the United States District Court for the
District of Columbia entered final judgments by
consent against defendants China Valves
Technology, Inc. ("China Valves"), its Chairman
and former CEO, Siping Fang ("Fang"), and its
CFO, Renrui Tang ("Tang"). The final judgments:
(i) permanently enjoin the defendants from
future violations of the anti-fraud, reporting,
recordkeeping, and internal controls provisions
of the federal securities laws.
China Valves Technology Inc. supplies valves and
services in China and internationally. It offers
valves, actuators, forging and castings, valve
locks, and related services nuclear power,
fossil power, hydropower, oil & gas, chemical
and petrochemical, water treatment, and other
industries. The company is headquartered in
Zhengzhou, China.
Officers
Chief Executive Officer
Founder, Chairman and President
Age: 65
Chief Financial Officer
Age: 45
Chief Operating Officer and Director
Age: 45
Chief Engineer
Age: 77
China Valves Technology's 13,000sq/m production
facility at its Henan Kaifeng High Pressure
Valve Co. Ltd subsidiary in China began
production in the middle of September 2009. The
production facility at Kaifeng Valve
mainly focuses on the production of
high-end large diameter metal valves used in
thermal and nuclear power plants, as well as by
the oil, petrochemical, and water supply and
drainage industries.
The facility produces high-quality forged steel
valves for use in supercritical thermal power
generating units
Neway is a Major Supplier of Valves to the Coal
Chemical Industry as well as Fossil Power
Neway Valves
valves are widely used in wear conditions (such
as gasification, catalysts, etc.), low
temperature conditions (such as air separation,
ethylene cracking, low temperature methanol
wash, etc.), high temperature conditions (such
as P91 pipeline), low leakage conditions (toxic
and hazardous media), oxygen conditions (air
separation, gasification, etc.), shut-off valves
(emergency shut-off, high-frequency shut-off,
pulse, lock-slag, and oxygen shut-off), as well
as other harsh conditions. The business of Neway
has extended to the whole industry chain
including direct liquefaction, indirect
liquefaction of coal, natural gas, and other
chemical production.
Projects
include
·
Yankuang Yulin Project (1M tons of coal) - China
·
Shenhua Ning Coal Project - China
Neway can provide a full range of valve demands
for power generation (conventional & improved
thermal cycles, including renewable resources &
related applications). Neway has a complete
range of professional certificates including
fireproofing, low-leakage, SIL, 4500TS, etc.
Neway’s experience and performance in the power
industry can meet numerous customers’
requirements. Projects include
·
Southern Power Generation Sdn Bhd Track 4A
Project - Malaysia
·
CELSE UTE Porto de Sergipe – I
- Brazil
·
Mitsui & ACWA Power & DIDIC IBRI & SOHAR CCPP
HRSG Project - Oman
·
Clean Energy Future, Lordstown Energy Center
Project - United States
Nuclear power stations include conventional &
nuclear islands. Accordingly, valves can be
classified as nuclear class 1,2,3, or
non-nuclear. Neway has an extensive production
range of nuclear valves and has is qualified by
NNSA with nuclear class 2, 3 and ASME N&NPT
certificates with nuclear 1, 2, and 3. Neway is
in cooperation with Nuclear EPC companies like
CGN and Areva on both China and international
nuclear power station projects. Neway is a
leading manufacturer of nuclear valves for new
generation technology of EPR, AP1000, and
HuaLong#1. Projects include
·
EDF NNB UK HPC Project - UK
·
CGN Fangchenggang Project - China
·
CGN Taishan Project - China
·
CZEC Pakistan K2-K3 Project - Pakistan
·
ITER CWS Cooling Water System Project - France
·
CNNC Tianwan 5&6 Project - Taiwan
·
CNNC Fuqing 5&6 Project - China
·
CGN Hongyanhe Project - China
·
Framatome KOREA CFVS Venting Project
Neway has been successful in becoming a
recognized international supplier of high
performance valves. Quality is the absolute key
for Neway. The quality of the company’s products
is partly due to the design standard but also
stems from the fact that all manufacturing steps
are available in-house for both forged and cast
valves.
Neway continues to develop the technical
specifications of its standard products,
allocating a significant annual budget to
testing and research in the areas of design,
fugitive emissions, and environmental
challenges. The company can conduct all valve
testing procedures as determined in industry
standards such as API, NORSOK, DIN/EN (AD2000),
ISO, and GOST, or as required by major clients.
The extensive range of products delivered by
Neway reflects the company’s desire to meet
everchanging customer demands. As a result, the
company also produces a wide variety of valves
covering practically all pressure and
temperature classes supported by automation
systems and devices.
Presently up to seventy per cent of Neway’s
sales are generated overseas. With a worldwide
distribution network and branch offices
established in USA, Brazil, the Netherlands,
Italy, Singapore and UAE.
Neway Valve
raised 1.46 billion yuan ($241 million)
in its initial IPO in 2014. It has continued to
grow both in China and internationally. Sales
growth has been 16 percent in each of the last
two years.
Metso Building $10 million Valve Plant in China
In responds to the growing global demand in the
valve market, Metso has decided to invest in a
new green-field valve technology center in
Jiaxing, China. The new-build plant will
strengthen Metso's valve and related products
production capabilities and increase capacity
for customers across various process industries,
both in China and globally. Metso expects to
invest a total of approx. EUR 10 million by
2020. The new technology center will start
operations in spring 2020.
"China is an extremely important market for our
valves business. The new technology center will
improve our competitiveness in China and will
have a strong role within the global operations
footprint. We also expect the investment to
expand our delivery capabilities, helping us to
better meet the growing needs both in terms of
capacity and product availability," says John
Quinlivan, President, Valves business area,
Metso.
The new location is designed to be a workplace
for a total of 400 valve technology
professionals. In addition to the new technology
center, Metso has a valve technology center in
the Waigaoqiao Free Trade Zone in Shanghai,
which was inaugurated in 2010.
Today, Metso has valve technology or production
centers in locations around the world: in China,
North America, Brazil, Germany, Finland, South
Korea and India. Metso employs more than 1100
people at seven locations in China, serving all
customer industries.
Velan Results are Volatile due to Large
Individual Orders
Velan’s
revenues are somewhat volatile due to the size
of individual orders. One example of this is
their order to supply valves for nuclear
reactors in the United Kingdom.
They
are
providing
valves for
NNB Generation Company (HPC)
Limited, a subsidiary of EDF
Energy Plc, a French-British power
utility, and AREVA NP, the world
leader in nuclear engineering. These valves will
equip the primary and safety auxiliary systems
of the two new-generation EPR™ reactors at the
Hinkley
Point C nuclear power plant,
located in Somerset, United Kingdom.
Valued at approximately
US$55
million, this transaction was recorded in
the group's order book in the fourth quarter of
the fiscal year, which ended on February 28,
2017. Delivery of the equipment is scheduled for
2019-2021
That single order comprises 20 percent of yearly
revenue, but it was delayed by various
controversies surrounding the contracts and
environmental consultations at the plant.
So this can make quite a difference in
the income statement for a given quarter.
For the first three quarters of 2018-9 sales
amounted to $261.5 million, an increase of $26.1
million or 11.1 percent from the prior year.
Sales were positively impacted by an increase in
shipments from the Company’s North American
operations, which were partially offset by
decreased shipments from the Company’s Italian
and German operations. Sales were
positively impacted by an increase in shipments
of large project orders and in improved MRO
business for the company’s North American
operations, although they were negatively
impacted by delays in the shipments of certain
large project orders in both the Italian and
German operations of the company due to various
customer-related and timing issues. Net
loss amounted to $6.4 million or $0.30 per share
compared to $9.6 million or $0.44 per share last
year. The $3.2 million improvement is primarily
attributable to a higher gross profit
percentage, partially offset by an increase of
administration costs. At the current sales
level, the company was not able to generate a
gross margin sufficient to cover its current
administration and other costs.
Ador uses Redkoh Controllers in Precipitator
Power Supplies
Ador is an Indian based provider of high
frequency & conventional high voltage rectifier
transformer sets that are deployed for clean air
applications (including electrostatic
precipitators for power stations, cement, pulp &
paper + steels plants and roads).
It is
also India’s largest provider of traffic
safety & enforcement solutions, including speed
enforcement systems & IP and electronic Variable
Messaging Signs/Commercial LED Walls”.
Redkoh, a U.S.-based
precipitator controls company and Ador
have long had a technology sharing
agreement which has been extended to 2027. Ador
integrates Redkoh controllers and software in a
number of its products and has also introduced
Redkoh’s Patented Medium Frequency and High
Frequency pollution control power products into
the power, pulp & paper,
cement and steel industries.
Tai & Chyun Upgrades Precipitator in Indonesia
Tai & Chyun Associates Industries Inc. was
established in 1996 aiming to provide a one stop
solution for electrostatic precipitator (ESP) to
minimize particulate emission level in all kinds
of industries e.g. cement, power utility, pulp
and paper, biomass, etc. In order to stabilize
and improve industrial production efficiency,
Tai & Chyun started to focus on ESP users in
Taiwan and expanded its market in Southeast Asia
for more than two decades serving countries such
as Thailand, Philippines, Indonesia, Vietnam,
Malaysia,
The need for such services is exemplified by a
project in Indonesia.
The mechanical parts inside the ESP had not been
replaced for more than 25 years. Therefore, most
of the parts already reached their life span.
Moreover, the parts inside were exposed to high
temperature from unstable operation. Therefore,
there are many mechanical problems inside ESP.
the following
problems were observed during the ESP
inspection conducted by Tai& Chyun engineer.
1.
Bent, Deformed & Welding failure GD Screen
2.
Leakage from the rooftop near inlet GD screen
area
3.
Bent GD Screen stiffener
4.
Worn out bearings, anvil & shaft
5.
Missing hammers
6.
Hammer Clamp Failure
7.
Falling-down hopper baffle plate causing hopper
full problem
8.
Bent CP & DE causing close distance between CP
and DE which lead to sparking problem and short
circuit
9.
Dust build-up on CP & DE due to rapping failure
10.
Missing CP & DE
Tai & Chyun was awarded to supply DE, CP, GD
Screen & rapping assemblies, together with
supervision. Below are the work scopes which
have been implemented in order to improve ESP
performance efficiency.
1.
Replacement of new CP
2.
Replacement of new Inlet GD Screen.
3.
Replacement of bearing, anvil, hammer clamp and
hammer for CP, DE & GD Screen rapping system.
NWL has Worldwide Presence to address the
Changing Market
NWL
is capitalizing on the growing Asian
precipitator market with a plant
in South Korea and
pursuit of the Indian market. NWL
generates more than $90 million in sales and
employs over 375 staff members. NWL operates
five manufacturing plants located in New Jersey,
Florida, North Carolina, and South Korea.
NWL is now one of the largest independent
suppliers of transformers, capacitors, and power
supplies for demanding industrial, military, and
research customers.
Robert N. Guenther Jr., NWL’s Vice President of
Product Development, was
awarded the
Senichi Masuda Award at the 2018
International Conference of Electrostatic
Precipitation in Charlotte, NC last fall.
Shuangdun Environmental has supplied a Number of
WESPS to Chinese Power Plants
Shuangdun Environment
Technology Co., Ltd.
(originally Yiixng Complete Chemical Equipment
Co., Ltd.) was
restructured in 1992. It is a
general contractor for environmental and
chemical processes
appointed by the original Ministry of
Chemical Industry. At present, the company
engages in engineering project contracting
(EPC), flue gas desulfurization by creating
sulfuric acid from flue gas, smelting by
wet method, pressure vessel manufacturing,
sewage treatment, and in designing,
manufacturing, installing and debugging special
equipment. Main products include honeycombed
electric mist precipitator with
conductive FRP and
new-model fourth generation SDD-CF wet
electrical dust precipitator.
The SDD-CF vertical tubular wet electrical dust
precipitators have been applied in Guodian
Taizhou Power Plant, Guodian Jianbi Powre Plant,
Zhongdian International Changshu Plant, Datang
Nanjing Power Plant, Zhongdian International
Shanxi Shentou Power Plant, Huarun Caofeidian
Power Plant, Guodian Lanzhou Fanping Power
Plant, Jiangyin Sulong Power Plant, Guodian
Suqian Power Plant, Hebei Longshan Power Plant,
Changzhou Zhongtian Steel and other enterprises.
The gas treating capacity of single wet
electrical dust precipitator can reach
4,500,000m3/h.
Guodian is active in Precipitator Projects
outside China
China Guodian Corporation,
established on December 29th,
2002 under the authorization by the State
Council, is an integrated power corporation
based on power generation and mainly engaged in
the development, investment, construction,
operation and management of power sources;
production and sales organization of electric
power (thermal power); investment, construction,
operation and management related to coal, power
generation facilities, new energy resources,
high and new technology, environmental
protection industry, technical services,
information consulting and other electric power
business; investment and financing businesses at
home and abroad; independent performance of
foreign trade circulation operation,
international cooperation, foreign project
contracting and foreign labor service
cooperation and other services. In 2010, the
Company was listed in the Fortune Global 500,
and in 2016, it ranked the 345th among
the Fortune Global 500.
Guodian Technology & Environment Group
Corporation Limited
(“Guodian Tech” for short) was established on
November 26, 2004, and is a corporate group
organized by China Guodian Corporation through
integrating its affiliated high-tech industry.
The registered capital of Guodian Tech is RMB
360 million yuan, with shares held by
China
Guodian Corporation,
Guodian Power Development Co., Ltd. and
China
Longyuan Power Technology Developing Corporation.
Guodian Tech has one wholly-owned subsidiary
company and eight holding subsidiary companies,
and is engaged in environmental protection,
energy conservation, knowledge advancement, new
energy resources, etc. the Company possesses
lots of technologies with independent
intellectual property rights which reach a
leading level both domestically and
internationally, enjoying good reputation and
popularity in the power industry.
The Guodian wet type electric precipitator, with
its anode plate of conductive GRP, can reduce
equipment investment and features stable
operation, small waste water discharge and low
power consumption in operation. The
independently researched and developed rotary
type LP pulse bag filter is characterized by
large filtering area under the same volume, good
dust removal effect, small amount of maintenance
work and low running cost, both of which have
been successfully applied in multiple
large-scale coal fired power plants.
Guodian has received an order for the Indonesia
Java No. 7 coal-fired power plant (2×1050 MW
unit) DCS project
The Indonesia Java No. 7 coal-fired power plant
(2×1050 MW unit) project is an important project
of Chinese energy enterprises to implement the
Belt And Road initiative and is carried out by
Shenhua Group holding joint venture
enterprise for the design, investment,
construction and operation maintenance. With its
advanced technology, products and engineering
project performance,
Guodian Zhishen stands out in the fierce
competition and wins the bid for DCS subproject.
In recent years, Guodian Zhishen attached great
importance to the development and application of
DCS technology and has made positive progress.
Guodian Zhishen currently has completely
independent property rights of EDPF-NT control
system products and technology, the world leader
in technology and research and engineering,
uphold the development line, with a strong team
of DCS engineering services; The application of
the products, technology and engineering
services in the 600 MW grade and above
coal-fired units has exceeded 54 sets and
achieved good results.
The successful bid for the Indonesia Java No. 7
coal-fired power plant (2×1050 MW unit) DCS
project, marks the Guodian Zhishen overseas
business has taken an important step for the
domestic DCS system to go out of the country,
and lays a solid foundation to develop a broader
overseas market.
GDHK and GANDA Group,
a large Indonesian conglomerate
are collaborating on Engineering and
Procurement projects cooperation such as ERW
pipe production line equipment and
biomass wood pellets fuel plant project,
and 50 MW coal-fired captive power plant EPC
project In Kalimantan island, and a hot-rolled
plant EPC project. GANDA The two sides agreed to
sign Memorandum of Understanding which involved
key projects mentioned above, with a total
amount of $100 million. The agreement signed in
Indonesia market is a GDHK’s first framework
cooperation agreement, and it is a good start
for both GDHK and GANDA Group for long-time
corporation. It is a breakthrough in the
Indonesian market development for GDHK.
Longking is World’s Largest APC Company
Fujian Longking Co., Ltd
is the largest manufacturer of air pollution
protection equipment in the world with a total
assets of more than 2.1 billion USD and over
6000 employees. The annual sales exceeded 1.2
billion USD. Moreover, it has built
manufacturing bases and R&D centers at Shanghai,
Xi'an,Wuhan, Tianjin, Zhangjiagang, Suqian,
Yancheng, Urumchi and Xiamen in China.
Longking became the China’s first listed company
in air pollution control industry in Shanghai
stock market in December 2000 (Stock Code:
600388). The company has been focusing on the
R&D and application of air pollution control
technology and equipment for more than forty
years, and it has become one of a few companies
that can provide not only innovative equipment
like flue gas dust collection, FGD, SNCR, bulk
material conveying, and electrical control
equipment, but also the one package solutions
for flue gas pollutants and project BOT
operation mode. Longking
is now active in more than 40 foreign
countries and regions.
Longking supplies conventional type ESP, low-low
temperature ESP, Wet ESP, electromechanical
two-stage ESP, moving electrode, power-off
rapping, non-leakage GGH device etc. The BEH
type ESP independently researched and developed
by Longking, a combination of advanced
technologies and capable to realize the low dust
emission requirements, has been applied to more
than 750 projects with an installed capacity of
more than 300GW.
Examples include
·
BEH type ESP for 2×1000 MW units of Xuzhou Power
Plant
·
ESPs for 660MW units of Tiroda Power Plant in
India
Longking has a separate group providing dry
scrubber systems. This group is the world’s
largest supplier of dry scrubber systems.
The company has presented in several
McIlvaine webinars and will be attending the Dry
Scrubber Users Group meeting in Kansas City in
September.
Balcke Durr Mixer System improves Precipitator
Efficiency
Last week we covered the
Balcke Durr corporate structure and
rotary heat exchange activities.
But the company has a long history as a
major ESP supplier known as
Rothemuhle, the company supplies and
services precipitators. This includes upgrades.
At Niederaussem the installation of a Delta Wing® mixer
system upstream of the Electrostatic
Precipitator resulted in
better collection efficiency of the
precipitator from homogenized dust distribution
and avoidance of dust stratification.
The company
has supplied four new precipitator
systems in Siekierke
Poland
BUSINESS NEWS
ExxonMobil to invest $100 million with DOE
for Lower Emissions Research
ExxonMobil
has said it will invest up to $100 million over
10 years to research and develop advanced
lower-emissions technologies with the U.S.
Department of Energy’s National Renewable Energy
Laboratory and National Energy Technology
Laboratory. The agreement – among the largest
between the department’s laboratories and the
private sector – will support research and
collaboration into ways to bring biofuels and
carbon capture and storage to commercial scale
across the transportation, power generation and
industrial sectors.
“We’re focusing on advancing fundamental science
to develop breakthrough solutions that can make
a difference on a global basis in emissions
reduction,” said Darren W. Woods, chairman and
CEO of ExxonMobil. “We’re doing that with our
in-house scientists and with corporate partners,
through relationships with 80 universities and
now with the intellectual and computing capacity
of the renowned national labs.”
The partnership will work to develop
technologies related to energy efficiency and
greenhouse gas mitigation. The joint research
will also focus on reducing emissions from fuels
and petrochemicals production. The agreement
will stimulate collaborative projects between
ExxonMobil and the two laboratories and
facilitate work with other national
laboratories, such as the
Idaho
National Lab.
“Finding meaningful solutions to address climate
change is going to take everyone – governments,
companies and academia – working together,” said
Vijay Swarup, V.P. of research and development
at ExxonMobil Research and Engineering Company.
“This agreement will help us advance fundamental
science and demonstrate scale. This is critical
because it will give us a better understanding
of how to progress technologies so they can be
applied globally.”
“The
National Renewable Energy Laboratory is
excited to work with ExxonMobil to develop
scalable energy solutions for the future and
facilitate research partnerships across the
national lab system,” said Martin Keller,
director at the National Renewable Energy
Laboratory. “Our partnerships with industry,
government, academia and other research
organizations drive the collaboration and
innovation that is integral to revolutionizing
the global energy landscape. By working
side-by-side with ExxonMobil researchers, this
partnership provides an unprecedented
opportunity to explore new technologies and
transform energy through science.”
This collaboration is a recent addition to a
series of partnerships ExxonMobil has
established for innovative lower-emissions
research programs, which includes over 80
universities, five energy centers and multiple
private sector partners. The company has spent
more than $9 billion since 2000 developing and
deploying lower-emissions energy solutions.
“This opportunity targets research challenges
and the development of technology central to our
mission and our capabilities,” said Brian
Anderson, director at the National Energy
Technology Laboratory. “We’re bringing
incredible research capability, enhanced by
ExxonMobil’s industry expertise and ability to
scale-up new technologies globally, which will
ultimately benefit consumers in the near term,
while also enhancing our nation’s prosperity and
energy security.
Fuel Tech First Quarter 2019 Revenues down
slightly from Previous Year
Consolidated revenues for
Fuel
Tech declined to $10.2 million from
$12.8 million in Q1 2018, reflecting lower
revenues at APC partially offset by higher
revenues at FUEL CHEM. Gross margin was 39.5
percent of revenues compared to 39.3 percent of
revenues in Q1 2018. Gross margin in Q1 2019
included the $0.3 million domestic incremental
work charge; exclusive of this item, gross
margin in Q1 2019 was 42.1 percent. SG&A
expenses declined to $4.4 million from $4.9
million in Q1 2018. As a percentage of revenues,
SG&A totaled 43.9 percent of revenues in Q1 2019
as compared to 38.5 percent of revenues in Q1
2018.
Net loss from continuing operations was $1.3
million, or $0.05 per diluted share, compared to
net loss from continuing operations of $0.2
million, or $0.01 per diluted share, in Q1 2018.
Net loss from continuing operations in Q1 2019
included the above-referenced restructuring and
incremental work charge, and operating losses at
Beijing Fuel Tech that, in the
aggregate, totaled $1.2 million.
Research and development expenses remained
stable at $0.3 million in Q1 2019 and Q1 2018.
Capital projects backlog at March 31, 2019 was
$12.2 million, $10.0 million of which was
domestic. APC segment revenues declined to $5.8
million from $8.6 million in Q1 2018, primarily
the result of a lower capital projects backlog
entering 2019 as compared to 2018. APC gross
margin was $1.9 million, or 32.8 percent, as
compared to $3.0 million, or 34.8 percent, in Q1
2018. Excluding the $0.3 million domestic
incremental work charge, APC gross margin in Q1
2019 was $2.2 million, or 37.4 percent.
“Our Q1 2019 net loss from continuing operations
of $1.3 million included operating losses at our
soon-to-be suspended Air Pollution Control
(“APC”) China operations (“Beijing Fuel Tech”)
and other charges totaling $1.2 million, as well
as the unfavorable impact of the timing of
completion of current APC projects under
contract,” said Vincent J. Arnone, Chairman,
President and CEO of Fuel Tech. “With that said,
we continue to pursue a promising pipeline of
APC contract opportunities, particularly in the
US, and we are in various stages of negotiation
with potential clients that, in the aggregate,
represent $10-15 million of contract award
opportunities that we expect will close by late
Q2 or early Q3 2019. The outlook for FUEL CHEM® is
also promising. We are scheduled to begin
installing our FUEL CHEM program on two
incremental coal-fired units at a domestic
utility in May and expect to have these new
units up-and-running by the end of Q2 2019.”
MHPS Americas achieved Record Results in 2018
Mitsubishi Hitachi Power Systems (MHPS) Americas
announced record financial results in the
2018 fiscal year, which ended on March 31, 2019.
MHPS Americas set company records for orders,
revenue, operating profit and free cash flow.
The company also had its best execution year
ever, achieving 100 percent on-time delivery for
gas turbines, record quality metrics, and recor
Babcock & Wilcox Path to Profitability
MHPS Americas new unit orders in the first
quarter of the 2019 calendar year were led by
two M501JAC orders in Mexico, and two M501JAC
orders in the US, making the JAC the fastest
growing gas turbine fleet in the Americas. MHPS
Americas also booked one order for a peaking
M501GAC for the US, and one FT4000® in the US,
bringing the total bookings to 2,054 megawatts
of output.
Lee Eckert, Flowserve’s senior vice president
and chief financial officer, added, “Our first
quarter 2019 results support our full-year
outlook, including our expectations for strong
growth in full-year 2019 Adjusted EPS. We were
especially pleased that our Flowserve 2.0
transformation efforts and continued focus on
cash flow generation resulted in solid working
capital performance and free cash flow
improvement of $160 million compared to the 2018
first quarter.”
Rowe concluded,
“We are building momentum with
our Flowserve .0 program to drive
additional operational and productivity
improvements across all levels of the
organization. We expect to further leverage our
recently combined pump segments to better serve
our customers and capitalize on improving
markets. I am confident that our ongoing
transformation initiatives will position the
company to deliver on our 2019 full-year
expectations and create significant long-term
value for our customers, employees and
shareholders.”
Flowserve reaffirmed its 2019 guidance,
including its Reported and Adjusted EPS target
range of $1.60 to $1.80 and $1.95 to $2.15,
respectively. Both the Reported and the Adjusted
EPS target range includes the expected revenue
increase of approximately 4.0 percent to 6.0
percent year-over-year, and are based on
previously announced assumptions, including net
interest expense in the range of $55 to $57
million and an adjusted tax rate of 26 percent
to 28 percent. While Flowserve expects 2019
earnings to reflect our traditional seasonality,
the company expects the greater weighting in the
second half.
Babcock & Wilcox Path to Profitability
Babcock & Wilcox Enterprises, Inc .announced 1st
quarter 2019 revenues of $231.9 million, a
decrease of
$21.2 million, or 8.4 percent, compared to the 1st
quarter of 2018. The decrease was primarily the
result of several EPC contracts being in the
final stages of completion in the 1st
quarter of 2019. GAAP net loss from continuing
operations in 1st quarter 2019
improved to $49.9 million compared to $116.8
million in 1st quarter 2018. Adjusted
EBITDA also improved by $72.7 million to
negative $5.0 million compared to negative $77.6
million in the prior year period.
"Our performance in the 1st quarter
of 2019 reflects the impact of the strategic
actions we have taken over the past several
months. Combined with the settlements we reached
in March 2019 and our additional financing, we
have momentum on our path to profitability,"
said Kenneth Young, Chief Executive Officer.
"Our Babcock & Wilcox segment continues to
perform well, and our change in strategy for the
SPIG segment is beginning to drive results. As
2019 progresses, we expect the core strengths of
our businesses to continue to become more
visible to our customers and shareholders. We
are also making progress on our cost-savings
initiatives, and looking forward, we continue to
target a run-rate adjusted EBITDA of
approximately $100 million as we exit 2020, not
including corporate overhead."
“Over the past six months, our customers and
employees have seen a major transformation at
Babcock & Wilcox Enterprises and are responding
positively as we have made significant changes
to improve our business and have shared new
information about our strategic path to
profitability," Young continued. "We are
optimistic as we see new opportunities emerging
as a result of our recent efforts. Going
forward, we expect to see improvement each
quarter as our cost-savings initiatives continue
to impact bottom-line results and as we minimize
EPC contract losses under the terms of the
settlements we achieved in March 2019. Our
dedicated employees continue to deliver
world-class products and services that reflect
the strengths of our more than 150-year
heritage. We are laser-focused on delivering
high-quality technologies that provide solutions
for our customers and strong results for our
shareholders.
Consolidated revenues in 1st quarter
2019 were $231.9 million, down 8.4 percent
compared to 1st quarter 2018
primarily due to several EPC contracts being in
the final stages of completion in the first
quarter of 2019 The GAAP operating loss in first
quarter 2019 was $32.0 million compared to an
operating loss of $106.4 million in 1st
quarter 2018. Prior to the 1st
quarter of 2019, the most significant drivers of
the company's operating losses were the charges
for the six European engineering, procurement
and construction (EPC) loss contracts. In the 1st
quarter of 2019, the most significant drivers of
our operating losses were settlement
costs, restructuring activities, and advisory
fees. Adjusted EBITDA was negative $5.0 million
compared to negative $77.6 million in 1st
quarter 2018.
Babcock & Wilcox segment
revenues increased 18.5 percent to $188.6
million in the 1st quarter of 2019
compared to $159.1 million in the prior-year
period, mainly driven by large construction new
build and industrial projects, partially offset
by a decrease in parts sales. Gross profit in
the Babcock & Wilcox segment in 1st
quarter 2019 was $31.1 million, compared
to $30.9 million in the prior-year period,
reflecting the increase in lower-margin
construction revenue as a percentage of total
revenue including construction services at no
margin for the SPIG segment on its single loss
project in the U.S. Gross profit margin was 16.5
percent, compared to 19.4 percent in the same
period last year. Adjusted EBITDA in first
quarter 2019 increased 115 percent to $9.0
million, compared to $4.2 million in last year's
quarter; this increase is mainly attributable to
the impact of cost-savings initiatives partially
offset by an approximately $2.3 million increase
in the level of corporate overhead being
absorbed by the segment compared to the
prior-year quarter. Adjusted EBITDA margin was
4.8 percent compared to 2.6 percent in the same
period last year.
SPIG segment
revenues decreased 21.3 percent to $28.9 million
in first quarter 2019 compared to $36.7 million
in first quarter 2018, mainly due to lower
volume of new build cooling system projects as
expected following the change in strategy to
improve profitability by more selectively
bidding and focusing on core geographies and
products, and a lower volume of aftermarket
services.
Gross profit improved to a positive $3.7 million
in 1st quarter 2019, compared to a
gross profit of negative $2.8 million in the
prior-year period. This improvement was
primarily due to the effects of the new strategy
and to continued progress made on the small
number of remaining legacy new build cooling
systems contracts in the quarter without
significant increases in estimated costs,
compared to the first quarter of 2018 when
higher estimated costs to complete were
incurred. Adjusted EBITDA improved by $8.0
million to positive $0.7 million compared to
negative $7.3 million in the same period last
year, driven by the improvement in gross profit
and the benefits of cost-savings initiatives.
Vølund & Other Renewable segment
revenues in the segment were $29.5 million for 1st
quarter 2019, compared to $60.0 million in 1st
quarter 2018. First quarter revenues were lower
compared to the prior year quarter as several of
the European EPC loss contracts were in the
final stages of completion in 2019, resulting in
lower construction revenue being recognized than
in 2018. The quarter-over-quarter variance was
also driven by the sale of Palm Beach Resource
Recovery Corp. (PBRRC) in September 2018 and the
previous decision to limit bidding on Vølund
renewable energy contracts.
© 2019 McIlvaine Company |