FGD and DeNOx NEWSLETTER

· Most Profitable Market Program for Flow and Treat Companies in the Power Industry

· Allocations of Cross-State Air Pollution Rule Allowances From New Unit Set-Asides for 2019 Control Periods

· EPA's Affordable Clean Energy Rule (ACE): Compliance and Innovative Solutions

· GE Barred from European Bank for Reconstruction Funds Due to Ethics on Lithuanian FGD Project

· Clyde Bergemann to Sell Pulp & Paper Segment While Focusing on Emission Reduction for the Power Industry

· Case Study: How One Utility’s Choice of a Control Platform Improved Plant Operation

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Most Profitable Market Program for Flow and Treat Companies in the Power Industry

Market research has been used as a peripheral tool by power plant flow and treat product providers. Now it can be the foundation of a program to successfully pursue the Most Profitable Market (MPM). There is already enough information available through media, associations, conferences and internet resources to determine the best prospects and then convince them that the supplier has a better product. McIlvaine can provide the market forecasts, which can be used to pursue this unique new approach based on customer knowledge and not sales leads.

Activity	Present Approach	MPM
Sales Initiation	Sales Leads and Reps	Predicted Prospects
Market Research	Peripheral	Foundation of Approach
Sales Promotion	Unstructured and Reactive	Structured and Proactive
Sales Success	Persuasion	Lowest Cost of Ownership Evidence and Delivery

McIlvaine can provide the market research. Suppliers can promote their products in a structured and proactive manner by working with the media, conference organizers, consultants, and associations with a structured approach, which breaks down traditional silos. Here is an example.

At Power-Gen International in New Orleans, Clarion introduced new approaches to organizing knowledge and connecting the seekers and those with the answers. There were Knowledge hubs and arranged meetings with programs called “Connect” and “Match.” McIlvaine contributed with organized knowledge access in a number of areas as explained at http://www.mcilvainecompany.com/PowerGen_2019/MPM/powergen_and_the_most_profitable.htm.

One successful example of the structured proactive started with Power-Gen Connect and ended with a brief meeting at a consultant stand. Speakers and exhibitors shared thoughts on flyash reclamation and reuse in the U.S. and India. Another example utilized articles in Power Engineering plus the knowledge of treatment chemical experts to analyze a very promising technology for improving efficiency of limestone scrubbers. While this may be a minor opportunity in the U.S., it is a huge opportunity in India and should continue to be pursued at Power-Gen India and in conferences organized by Mission Energy which also has an upcoming 2020 flyash utilization conference in India.

There were a number of valve exhibitors identified in the McIlvaine Power-Gen tour guide. A very narrow application “turbine bypass valves” was selected to demonstrate the value of pursuing each niche. McIlvaine is working with IVAMA (Indian Valve Manufacturers Association) and writes more than one feature article on valves each month for major publications. There are a number of good articles on valves archived in Power Engineering.

The support of utility associations such as EPRI, VGB, Mission Energy and others can be pursued because the MPM for suppliers is the lowest total cost of ownership solution for the operators.

McIlvaine standard market reports provide the Total Available Market at each major prospect. With MPM this is expanded to identify and then convince those customers who will provide the company with the greatest profits.

McIlvaine needs assistance to forecast the most profitable markets. The supplier also needs this crucial information. It can be obtained in an organized approach where knowledge is shared.

Determination Needs	Knowledge Sharing
Product use in each power process by fuel type	Knowledge networks providing access to media, conference and association resources
Determine the market for each process	Free flowing solids includes coal, limestone, gypsum, ash; liquids include water, slurries, process liquids and gases would include steam (all being forecast by McIlvaine in each country).
Determine the use for the product in each process	Knowledge networks providing access to media, conference and association resources
Determine the purchases by each major customer	Analysis already available for coal, nuclear, GTCC, and renewables generators with 95% of capacity. It is customized for a specific offering with knowledge networks.
Analyze competitor market share and offerings	This includes analysis of all advertising and exhibition activity including niche as well as major events. Media can provide this data to advertisers.
Compare lowest total cost of ownership	Knowledge networks providing access to media, conference and association resources are supplemented by webinars.
Pursue markets where high margins are not offset by high sales costs	Associations, media, and conferences can be leveraged in an organized market campaign which can include collaboration with other divisions or with complimentary product suppliers
Develop new and better solutions	Access to all the available information is necessary to determine what is needed.

The starting points for the program are the standard or customized market reports described at www.mcilvainecompany.com - Markets. The Most Profitable Market Program is also explained in detail from a home page link. Bob McIlvaine can answer your questions at rmcilvaine@mcilvainecompany.com direct: 847-784-0013; cell 847-226-2391.

The Environmental Protection Agency (EPA) is approving a request submitted by the Illinois Environmental Protection Agency (IEPA) on February 6, 2018, to revise the Illinois State Implementation Plan (SIP) under the Clean Air Act (CAA) for the 2010 1-hour sulfur dioxide (SO₂) National Ambient Air Quality Standard (NAAQS). IEPA specifically requested EPA approval to amend the Illinois SIP for the 2010 1- hour SO₂ NAAQS to account for two variances granted by the Illinois Pollution Control Board (IPCB) to Calpine Corporation (Calpine) and Exelon Generation, LLC (Exelon). EPA proposed to approve the state’s submittal on June 12, 2019. DATES: This final rule is effective on January 8, 2020.

Federal Register/Vol. 84, No. 236/Monday, December 9, 2019/Rules and Regulations

Allocations of Cross-State Air Pollution Rule Allowances From New Unit Set-Asides for 2019 Control Periods

The EPA is providing notice of the availability of preliminary lists of units eligible for second-round allocations of emission allowances for the 2019 control periods from the new unit set- asides (NUSAs) established under the Cross-State Air Pollution Rule (CSAPR) trading programs. EPA has posted spreadsheets containing the lists on EPA’s website. EPA will consider timely objections to the lists before determining the amounts of the second- round allocations. DATES: Objections to the information referenced in this notice must be received on or before January 8, 2020.

EPA's Affordable Clean Energy Rule (ACE): Compliance and Innovative Solutions

The presentation is available in the proceedings and you can contact Anne-Sophie van der Waart Performance Engineer anne-sophie.vanderwaart@aecom.com

The Ameren Missouri Rush Island Energy Center is a 1250 MW coal-fueled steam electrical power generating facility located along the Mississippi River below the Mississippi River bluffs near Festus, Jefferson County, Missouri. The project scope includes construction of equipment foundations; purchase and erection of structural steel; and purchase and installation of a flue gas desulfurization unit with a reheater, mist eliminator, scrubber, slurry and effluent tanks, and a sludge removal system. Construction is expected to begin in 2020.

China plans to slash coal-fired power capacity at its five biggest utilities by as much as a third in two years by merging their assets, according to a document seen by Reuters and four sources with knowledge of the matter.

The move to shed older and less-efficient capacity is being driven by pressure to cut heavy debt levels at the utilities. China, is, however, building more coal-fired power plants and approving dozens of new mines to bolster a slowing economy.

The five utilities, which are controlled by the central government, accounted for around 44 percent of China’s total coal-fired power capacity at the end of 2018.

(The utilities) will strive to reduce coal-fired power capacity by one quarter to one third ...cutting total losses by more than 50percent from the current level to achieve a significant decline in debt-to-asset ratios by the end of 2021,” the document said.

The plan, initiated and overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), follows heavy losses at some of the utilities.

Some of their coal-fired power stations have filed for bankruptcy in recent years as Beijing promotes the use of renewable energy and opens up the state-controlled power market.

The utilities — China Huaneng Group Co, China Datang Corp, China Huadian Corp, State Power Investment Corp and China Energy Group — did not respond to faxes requesting comment.

Together, they had 474 coal-fired power plants with combined power generation capacity of 520 gigawatts (GW) at the end of last year.

Their coal-fired power assets came to 1.5 trillion yuan ($213 billion) while total coal-fired power liabilities were 1.1 trillion yuan, the document said.

The document was seen by two people at two of the utilities and was also verified by a source at SASAC and a government researcher.

It was not clear when the document was published but it said the merging and elimination of outdated capacity would start from 2019 and be achieved within three years, aiming to improve the efficiency and operations at the companies.

Utilities with debt-ridden operations in the northwestern regions of Gansu, Shaanxi, Xinjiang, Qinghai and Ningxia would be the first to carry out the plan, it said.

The government researcher said the SASAC has been researching possible consolidation in the coal-fired power sector since 2017 but added: “It’s easier said than done.”

“No one is willing to hand in their high-quality assets and there is no point in merging the bad assets,” the government researcher said.

The plan’s pilot scheme encourages the utilities to “actively introduce external capital,” including the use of debt-to-equity swaps to cut debt.

The document also said other central government-controlled companies could see their coal-fired power assets merged in the future.

China raised its coal-fired power capacity by 42.9 gigawatts (GW), or about 4.5 percent, in the 18 months to June, connecting new projects to the grid at a time when capacity in the rest of the world shrank,

China also has another 121.3 GW of coal-fired power plants under construction, The increase followed a 2014-2016 “permitting surge” by local governments aiming to boost growth while formerly suspended projects have also been restarted, Global Energy Monitor said. In the rest of the world, coal-fired power capacity fell 8.1 GW over the same period.

To cut pollution and greenhouse gas emissions, China has promised an “energy revolution” aimed at dramatically reducing its reliance on coal. It cut coal’s share of the country’s total energy from 68 percent in 2012 to 59 percent last year, and researchers predict it will fall to 55.3 percent by 2020.

Absolute coal consumption, however, has continued to increase in line with a rise in overall Chinese energy demand

China approved new 40 coal mines in the first three quarters of 2019, and it has continued to make use of “green” financing to support coal-related projects.

The Tamil Nadu government-owned electricity generating company Tangedco has requested the power ministry to extend deadlines to install emission reducing fuel gas desulfurization (FGD) systems in two units at its North Chennai power plant by another two years.

The additional time has been sought even after the timeline to comply with new power plant emission norms were extended to 2022 after the earlier deadline of December 2015 was missed.

While the company wants to extend the deadline for two of its units at the plant, Tangedco is waiting for the budgetary offer from BHEL for installing the pollution-cutting equipment in the remaining three units.

According to projected figures, installation of emission-reducing equipment would necessitate a significant rise of Rs 0.62-0.93/unit in power tariffs.

The states had sought access to the Centre-operated Power System Development Fund and the National Clean Energy Fund (NCEF) to meet the additional expenditure required to install FGDs. many states had also demanded that the capital expenditure on this account should be passed on as grants and not considered as loans.

Eskom has asked for additional emission exemptions at two of its biggest plants, a request that will increase environmental protests against the state-owned utility at a time when it's already being slammed for rolling power cuts.

Eskom, which is struggling to meet its costs and has R454 billion in debt, has applied to the environment ministry to delay complying with sulfur dioxide emission limits at its Medupi coal-fired plant by five years. It's also seeking permission not to install emission reduction equipment at its Matimba plant at all, saying it's not cost-effective.

Emissions of particulate matter, which cause respiratory disease, are already at a 20-year high since equipment at the utility's Kendal plant was damaged during a strike. While independent studies allege that Eskom's pollution kills about 2 000 people a year, the company puts the number at 320. Environmentalists have taken the government to court over its failure to rein in emissions from the utility.

With a combined capacity of more than 8 700 megawatts, or about a fifth of current total capacity, Medupi and Matimba are crucial to Eskom. The company operates 15 coal-fired power plants, with many of them nearing their de-commissioning dates. As a result of that and inadequate maintenance, South Africa has this week been hit by record power cuts that have prompted public anger and an apology from President Cyril Ramaphosa.

While Eskom planned to cut sulfur dioxide emissions at its R228 billion Medupi plant from 2025, it's now asked the ministry to postpone that to 2030. Installation at Medupi of flue-gas desulfurization equipment, which reduces sulfur-dioxide emissions, at a cost of R38 billion has yet to begin and will only be completed by 2030, said Bryan McCourt, the manager of Eskom's Air Quality Centre of Excellence.

India has a phased plan for plants to comply with the emission norms, with some plants having until end-December 2019, while others have up to the end of 2022 to comply. A total of 440 coal-fired units that produce 166.5 gigawatts (GW) have to comply with the regulations by December 2022.

The data shows that of these, 224 units, which produce 84.8 GW of power, have not yet awarded contracts for installing FGD units, meaning that based on the industry’s own estimates of installation timelines, they are set to be non-compliant.

That means at least 51% of all coal-fired units that have the emission targets could fail to comply with the deadlines.

The progress around FGD installation for plants situated in and around the National Capital Region (NCR) of New Delhi—one of the areas worst affected by the toxic haze that has shrouded much of north India in recent weeks—is also alarming.

The 33 coal-fired units around NCR, which produce some 12.79 GW of power, all have to be compliant with the emission norms by next month, but only two have installed FGD units so far.

The data analyzed however, shows that 22 units have not even awarded FGD installation contracts, while contracts for nine others were only awarded in 2018.

This means 94 percent of the coal-fired units in the NCR area are poised to fail to comply with next month’s deadline, at a time when New Delhi has declared a public health emergency with its Air Quality Index (AQI) at hazardous levels.

While computing its air quality index (AQI), India’s federal pollution control board takes into consideration sulfur dioxide and PM_2.5 - particles which are formed in the atmosphere by reactions with chemicals like sulfur dioxide.

APP, which counts dozens of private players including Adani Power and Reliance Power, estimates it will cost private companies roughly $38 billion to comply with the norms and install FGD units to tackle sulfur dioxide emissions.

It contends that debt-laden power producers, which are still owed over $11 billion in dues by government-owned distribution companies, cannot afford to invest such vast sums at this time.

Fuel Tech, Inc. announced the receipt of multiple air pollution control (APC) contracts from customers in the U.S., Japan and Europe. These awards have an aggregate value of approximately $2.6 million.

An order from Japan was received for an ULTRA^® system that will be installed on a natural gas-fired combined cycle power plant in the Pacific Rim being retrofitted with Selective Catalytic Reduction (SCR) technology. Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent where SCR is used to reduce nitrogen oxide (NO_x), eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. This is a third unit at a site and a follow-on order from a 2017 contract. Engineering is expected to be completed in the 1^st quarter of 2020, with equipment delivery scheduled sometime after 2020.

A contract change order was received in Europe for catalyst replacement for an existing Fuel Tech SCR system. Work will be completed in the 4^th quarter of 2019.

In the U.S., an order was received for an Electrostatic Precipitator (ESP) inspection at a metal processing facility in the Midwest. The services will provide critical information for the plant to define the scope for a future ESP upgrade. Work is scheduled for completion in the fourth quarter of 2019.

GE Barred from European Bank for Reconstruction Funds Due to Ethics on Lithuanian FGD Project

The European Bank for Reconstruction and Development (EBRD) has imposed a six-year term of debarment on GE Power Sweden AB following an investigation in cooperation with the Serious Fraud Office of the United Kingdom.

The penalty means that GE Power Sweden cannot be a bank counterparty until November 26, 2025. The compliance also submits the GE affiliate’s possible debarment from the World Bank, African Development Bank, Asian Development Bank and Inter-American Development Bank.

“The EBRD’s decisive response in this case underscores how seriously the EBRD takes corruption, especially when it involves donor funds,” EBRD Chief Compliance Officer Lisa Rosen said in a statement.

The investigation relates to a project to install flue gas desulfurization (FGD) units at the Lithuanian power plant, a project financed by donor funds administered by the EBRD.

The investigation found that, from as early as 2002, representatives of Alstom Power Sweden AB, a predecessor company to GE Power Sweden, had conspired with another Alstom entity to manipulate the technical specifications for the FGD contract in their favor by making payments to Lithuanian government officials.

The six-year debarment is the longest to have been imposed in the history of the bank, according to the announcement.

Consolidated revenues for the first nine months of 2019 were $25.6 million as compared to $40.7 million in the same period last year, due primarily to the reasons cited above.

Gross margin was 42.3 percent as compared to 34.8 percent of revenues, due to the mix between APC and FUEL CHEM revenues recognized during the year and to year on year improvement in APC gross margins.

SG&A expenses for the 2019 nine-month period declined 7.6 percent to $12.7 million from $13.8 million in comparable 2018 period. On a total dollar basis, SG&A for the 2019 nine-month period decreased by $1.1 million.

Net loss from continuing operations was $(3.5) million, or $(0.15) per share, compared to a net loss from continuing operations of $(0.8) million, $(0.04) per share, in the 2018 nine-month period.

KraftPowercon Sweden AB announces the acquisition of 100 percent ownership of Marsulex Environmental Technologies Corporation (MET). U.S.-based MET is a technology leader in Air Quality Control Systems (AQCS), specifically in the control of particulate (dust) and gaseous emissions from power plants and industrial boilers.

For more than eight decades, MET has provided air pollution control systems and services that cost-effectively minimize pollutants, including sulfur dioxide (SO₂), particulates, nitrogen oxide (NO_x), mercury and acid gas from emissions of electric utilities, petrochemical and general industrial facilities around the world. In the U.S., MET maintains facilities in Lebanon, PA and Hampton, NJ while operating globally, predominantly in the Americas and Europe.

The acquisition will enable MET to introduce cost-efficient electrical upgrades of Electrostatic Precipitators (ESPs) using KraftPowercon's advanced technology “SmartKraft” and “MicroPulse” power supplies. This technology is by far the lowest cost means of upgrading ESPs to achieve particulate emission compliance.

"We hope to integrate MET's qualification and experience in the ESP business, together with KraftPowercon's advanced power supplies, in order to enable MET to offer solutions for electrical upgrades of ESPs to meet tougher dust emission norms," said Ranjit Jakkli, Managing Director of KraftPowercon. "An electrical upgrade eliminates the need to increase the physical size of the ESP, making it the lowest cost, and most space/downtime-efficient means of achieving compliance with modern particulate emission levels. MET will continue to actively pursue its current markets with its suite of AQCS products to support the industry's demand for lower emissions."

KraftPowercon is a global company headquartered in Gothenburg, Sweden, manufacturing power supplies and rectifiers for a variety of industrial applications including ESPs, Ballast Water Treatment, production of Industrial Gases such as Hydrogen, as well as Surface Treatment and production of semiconductors. The company has manufacturing facilities in Sweden, China and India.

Clyde Bergemann to Sell Pulp & Paper Segment While Focusing on Emission Reduction for the Power Industry

Clyde Bergemann Power Group (CBPG), a globally operating developer of components and systems for the optimization of processes in power and energy plants, has sold its paper & pulp segment to Wynnchurch Capital, a U.S.-based private equity firm with a focus on small and mid-sized businesses. The parties have agreed to not disclose any details about the transaction, which marks a milestone for CBPG’s strategy — to focus increasingly on the core business in the power industry. The funds from the sale are to be used primarily for important future investments.

Clyde Bergemann Power Group, headquartered in Wesel, Germany, has been active in the area of power plant on-load boiler cleaning for almost 100 years and is one of the global market leaders in this field. The key components and systems developed by CBPG allow for efficient, safe and particularly low-emission operation of power plants as well as waste incineration and petrochemical facilities. After the successful restructuring of the group’s US and European operations over the past years, along with an expansion in the Asian market, both shareholders and the management aim to position the group for its future course with the sale of the pulp & paper segment:

“High-performance products for the global power industry are our special strength. Especially in a market that is experiencing major changes, our goal is to ensure that fossil fuel-based power can be supplied safely, reliably and with as little CO₂ emissions as possible”, says Dr. Christian Mueller, President & CEO of CBPG, “We are convinced that our segment specializing in cleaning systems for black liquor-fired boilers in the pulp & paper industry will continue on its success path under its new owner.”

The pulp & paper segment has experienced particularly strong growth in South America. The new company will operate as Clyde Industries and consist of six subsidiaries in the USA, Canada, Columbia, Brazil, Finland and Indonesia with long-standing experience in their respective pulp & paper markets. Clyde Industries will be headquartered in Atlanta, GA.

The repositioned Clyde Bergemann Power Group will consist of twelve subsidiaries worldwide with a total revenue within the triple-digit million power plant operators in range and will be managed by Clyde Bergemann Management GmbH. As a key supplier of components, it will support improving process efficiency and reducing emissions. It will continue to act as a technology leader and global partner for retrofitting and new construction in the fossil fuel-based power industry and at the same time benefit from the globally increasing demand for biomass plants, environmentally-friendly waste incineration facilities and similar installations in the petrochemical industry.

“With new funds for investments based on a solid product and financing structure, we are optimally positioned for a demanding international market, the challenges of digital transformation and the further expansion of our business operations”, says Dr. Christian Mueller.

This knowledge hub presentation is available in the conference proceedings and cites the following benefits of DVR.

This presentation was made by Frank Thiel, general manager of San Buenaventura Power.

How High Efficiency-Low emissions was achieved: Detailed Evaluation/Site support of Poyry, Black & Veatch

Case Study: How One Utility’s Choice of a Control Platform Improved Plant Operation

Lee J Ward Technical Consultant Rockwell Automation explained how the new control platform had some unexpected benefits.

Rapid system deployment • Uncomplicated Commissioning • Faster time to operation •

At the Umicore stand we talked to Nate White, President and Sales Director of the USA operation who, along with Henrik Anderson, Sales Manager Power Generation, was answering visitor questions.

Umicore Catalysis is a leading supplier of SCR catalyst solutions for Waste-to-Energy, Engines, Gas Turbines, Biomass, FCC Units and Crackers. It has more than 2,000 SCR installations worldwide. Umicore’s air pollution technology includes a series of unique catalysts for the control of nitrogen oxides (NO_x), the reduction of carbon monoxide (CO) and volatile organic compounds (VOC) from stationary or mobile sources. Stationary catalysts are manufactured in Houston and Denmark.