FGD and DeNOx
NEWSLETTER
November 2020
No. 511
Table
of Contents
MARKETS
·
MHPS Is Leading FGD
Supplier
·
Coal Will Remain a Major
Fuel Source In India
·
Asia Power Index Shows
U.S. Declining and China Rising
·
China Plans 200 GW of
Coal Capacity
·
China Has Invested in
Power Plants in 83 Countries
·
Ammonia Is a Fuel For
Power Plants Which Has Lots of Advantages
INDUSTRY NEWS
·
Serbian Utility Orders
Two Mitsubishi Emissions Reduction Systems For Coal-Fired Plant
·
Sumitomo SHI FW Awarded
CFB Boiler Modernization Project in Austria
·
B&W Renewable to Provide
Upgrades To Reduce Emissions and Increase Efficiency of Scotland Waste-to-Energy
Plant
·
DSI Webinar Recording
Now Available From DSUA
·
Gasification India 2020
·
Dubai Builds First
Coal-fired Power Plant Despite Pledging Lowest Carbon Footprint in The World by
2050
·
Hamon Selected to Take
Part in a Renewable Biomass Power Plant in Japan with an 8 Modules ACC
·
CDC Approves
265-megawatt Coal-fired Power Plant Project in Oddar Meanchey Province
·
Mitsubishi Electric
First Half Revenue Decrease
·
GE Transformation
Continues
·
Coal-Fired Generation
Could Increase 20 percent in the U.S. in 2021
·
Talen Energy Announces
Closure of Three Plants by 2025
·
AEP to Shut Down or
Refuel 5.6 GW by 2030
·
AEP Could Spend $1
Billion to Meet Environmental Requirements
·
U.S. Utility Proposes
Just Transition Strategy For First Nations Communities
·
ANDRITZ to Supply
Another High-Efficiency Powerfluid Circulating Fluidized Bed Boiler For a
Biomass Power Plant in Japan
·
Fuel Tech Reports Higher
2020 Third Quarter Revenues
·
Babcock & Wilcox
Enterprises Reports Positive Third Quarter 2020 Results
MARKETS
MHPS
Is Leading FGD Supplier
MHPS,
achieved the top market share for flue gas desulfurization (FGD) systems in
2019, securing 37.2 percent of the global market. For the last
six-year period, MHPS had the world's leading market share with 37 percent,
delivering the systems with a combined 51,010 MW of output. This is the fifth
time that MHPS has obtained the top market share during this period.
MHPS
has consolidated the environmental technologies for thermal power plants that
were developed and accumulated by Mitsubishi Heavy Industries, Ltd. (MHI) and
Hitachi, Ltd., providing the company with the capability to offer an integrated
Air Quality Control System (AQCS) comprising FGD, Selective Catalytic Reduction
(SCR) for denitrification, and Electrostatic Precipitator (ESP) for dust
collection systems. This centralization has established a foundation for MHPS as
the world’s only manufacturer able to independently offer proposals and provide
these systems. Its world-leading technologies greatly reduce air pollutants such
as sulfur oxide (SOx), nitrogen oxide (NOx), and
particulate matter, helping to significantly improve the global environment.
MHPS
has delivered more than 300 FGD systems to the global market. They have expanded
the business by providing technologies and guidance in countries and regions
where demand for advanced AQCS has risen alongside economic development and
applying these technologies in joint development projects with Mitsubishi
Shipbuilding Co., Ltd. for desulfurization equipment for ships. MHPS also
boasts a leading global market share for SCR systems and is an industry leader.
Going
forward, encouraged by the strong support it has received from customers that
has resulted in such a large market share, MHPS will further focusing its
efforts on the widespread adoption of AQCS while accurately assess customer
needs, as well as provide the energy security that is essential to economic
development, promote the decarbonization of energy, and contribute to the
preservation of the global environment.
Coal Will Remain a Major Fuel Source In India
The
per capita consumption of energy in India is one of the lowest in the world.
According to the Global Carbon Project, Americans consume, on average, 10 times
more than Indians. However, the Asian country’s massive population is the main
reason for being the third-largest emitter of CO2 in the world after
China and the U.S. Despite the challenges, renewables are still 22 percent of
the total installed capacity of 357 GW. The Indian government is aiming for 175
GW of renewables by 2022 and a further 500 GW, or 40 percent of total capacity,
by 2030.
India’s 'phobia' for overreliance on foreign producers and the effects of
climate change are the main reason for these ambitions. Ever larger quantities
of oil, gas, and coal are required to fuel the country's development. Although
India produces some oil and gas, import dependency has grown significantly. The
energy bill negatively affects the country’s trade deficit when prices are high.
Coal
is one of the few areas where India has the potential to maintain relative
self-sufficiency. Prime Minister Narendra Modi announced in June that 40 state
coal pits will be opened for commercial mining to increase efficiency and
production which is the first time since the 1970s. This underscores the
government’s commitment to boost electricity production from coal-fired power
plants. Within the next decade, another 64 GW of coal plant capacity is planned.
These
commitments stand in stark contrast with the same government’s intention to
boost renewables by replacing coal. According to India’s energy minister, R.K.
Singh, “many of those plants [coal] are getting retired. Some plants are already
retired, and about 29 more plants are going to retire, and all that space will
be occupied by renewable energy.”
Besides the obvious environmental advantage of renewables (especially solar in
India), decentralized energy production has the advantage that it doesn’t
require large transportation infrastructure. Especially in remote and rural
India, consumers can leapfrog technological development and harness the power of
the sun to improve their quality of life.
Furthermore, solar power in India has one of the lowest costs globally due to
favorable environmental conditions. According to Wood Mackenzie, an energy
consultancy, the levelized costs of electricity (LCOE), which is a standardized
measure to compare different sources of electricity production, have fallen to
$38 per MWh. This means that solar power is 14 percent cheaper than coal-fired
power which historically has been the cheapest source of energy in India.
However, solar power’s favorable conditions could change in the near future as
the energy mix changes. Integrating intermittent renewables and maintaining a
stable energy system is a major challenge. The lack of affordable and scalable
storage capacity means that an energy mix dominated by renewables is unrealistic
at the moment.
Furthermore, the lower LCOE of renewables vis-à-vis coal does not include costs
to facilitate integration in the grid and maintain stability. Infrastructure
costs are usually higher for renewables due to their intermittent nature
renewable power and sometimes decentralized property.
Also,
approximately 80 percent of the components used in solar projects are imported
from China. The difficult political relations with India’s northern neighbor
have created the need for a domestic PV-industry to reduce dependence. However,
these efforts have been relatively unsuccessful as Chinese manufacturers are
still able to produce cheaper while delivering higher quality products.
Increasing customs duties could spur a domestic industry, but it would hurt
India's ability to reach its ambitious goals.
It
remains likely that the world's second-most populous country will invest heavily
in both renewables and coal. Therefore, expect more contradictory announcements
from India in the coming years. However, the rapid development of renewable
technologies and falling costs are a unique opportunity to leapfrog the
development of the power systems of developed countries. Instead, India could
become an example of modernization without pollution.
These
comments have been by Vanand Meliksetian for Oilprice.com.
Asia
Power Index Shows U.S. Declining and China Rising
Recently, rankings of Asia Power Index 2020 have been released which states that
China is catching up as the most powerful country in the Indo-Pacific region.
This index ranks India at 4th position and reveals that US is getting weaker and
China is strengthening its position. This index is released by Lowy Institute,
which is a think tank located in Sydney, Australia. This institute creates the
report after making use of 128 parameters including economic relations,
information flows, economic stability, defense spending and projected future
resources.
As
per the recent findings, the US is the topmost country influencing the
Indo-Pacific securing the score of 81.6. Whereas China, with the score of 76.1,
has managed to remain in second place for the third year. Japan is in the third
spot and India secured the fourth position. According to observations, the
biggest gainer is China. In 2019, the score for the US was 84.5 and this year it
declined to 81.6, marking a difference of 2.9 points.
The
Lowy’s Asian Power and Diplomacy Program’s (LAPWP) Director Herve Lemahieu
highlighted various causes for America’s declining influence. The first reason
was America’s unsuccessful attempt to tackle the COVID crisis. As maximum number
of coronavirus cases are registered in the U.S., LAPWP has concluded that the
Trump administration failed to combat the pandemic. The second reason depicted
by Herve Lemahieu is the ‘multiple trade disputes. Along with the US-China trade
war, America has engaged in various trade disputes with Vietnam and other
countries. The third reason is President Donald Trump’s different efforts to
withdraw from multilateral deals and agencies.
According to the LAPWP director, the economy of the U.S. has suffered a lot due
to the pandemic and it may take 4 to 5 years for the economy to get better. He
also suggested that the economy of China that has bounced back from the virus
slump may benefit Beijing in the long run.
Lowy
also made certain statements on India and stated that India has lost potential
due to COVID-19. The study envisaged that India will reach 40 percent of China’s
economic output by 2030, compared with the 50 percent estimate last year. He
also added that India will face a new poverty rate due to the pandemic and its
emergence as a great power in the region may be delayed.
LAPWP
has termed Japan as the “smart power” for using limited resources to wield broad
influence in the region. As the Indo-Pacific region is in the news these days,
this recently announced report has grabbed the attention of many.
China Plans 200 GW of Coal Capacity
China’s economy is recovering from the lockdowns caused by the
coronavirus pandemic. Unlike many countries, China is using coal to do so.
This is not the first time China spurred its economic recovery using
coal. It did so after the financial crisis and global recession of 2008–2009.
China is currently planning to build more than 200 GW of coal-fired generating
capacity — almost the same amount of coal-fired capacity that the U.S. currently
has in its generating fleet.
Once built, China will have more coal-fired capacity than the entire
U.S. generating fleet composed of all sources. By building coal-fired plants
that operate for 50 or more years, China is putting more emphasis on economic
recovery than on its Paris accord pledge to reach peak carbon dioxide emissions
by 2030—just 10 years away.
Between March 1 and March 18, 2020, authorities in China permitted more
coal-fired capacity for construction (7960 MW) than they did in all of 2019
(6310 MW).
China’s local governments favor coal-fired power plants as tools for
economic development and for the baseload power they provide, which is essential
for reliability, particularly when a pandemic like COVID-19 hits and hospitals
need electricity to operate medical equipment 24/7, keeping people alive. China
has substantial domestic coal reserves — 142 billion metric tons as of the end
of 2019—13 percent of the world’s total, and as such, coal is a secure energy
source and a reliable generating fuel.
Since 2000, China’s coal fleet has grown five-fold and now totals 1040 GW — nearly half the global total. China is one of 80 countries in the world using coal-fired power, up from 66 countries in 2000. Coal generated 36 percent of the world’s electricity in 2019, close to its highest share in decades and a greater share than any other generating fuel. China, however, almost doubled that share, generating 65 percent of its electricity from coal in 2019, using a very young coal fleet with generators averaging 14 years of age.
China Has Invested In Power Plants In 83 Countries
Between 2000 and 2018, Chinese companies and policy banks have invested in 777 power plants overseas representing 186.5 gigawatts (GW) of generation capacity across 83 countries in the world. Of this, 106.2GW is already online, which accounts for close to two percent of the world’s total electrical capacity outside China. The remainder is planned or under construction and represents about one percent of additional capacity needed to meet energy demand by 2030, according to the Stated Policies by country governments of the world.
Figure 1: Deal Types of Overseas Power Plants with Chinese Investment and Finance Over Time
Source: China’s Global Power Data, Boston University Global Development Policy
Center.
Forty percent of China’s overseas power plant capacity is in the form of
coal-fired power plants; 27 percent is hydroelectric, and renewable energy
accounted for 11 percent of the total capacity. Annual installation of renewable
energy with Chinese investment overseas has generally been on the rise over the
past decade, with many projects still under development or planning. However,
fossil fuel projects are still taking up a significant share of Chinese overseas
power plant capacity.
Figure 2: Distribution of Energy Sources of Overseas Power Plants with Chinese
Investment and Finance
Source: China’s Global Power Data, Boston University Global Development Policy
Center.
The energy sources of Chinese power generation investment and finance are
generally in line with regional energy resource endowments. In addition, host
country regulatory strengths seem to be another main factor that attracts
Chinese investment and finance in renewable energy. Coal power investment is
highly concentrated in Southeast Asia (40 percent), South Asia (31 percent), and
Africa (16 percent). These regions also received significant amounts of
hydropower investment, but Latin America received the most, at 41 percent of
total Chinese hydropower investment. Latin America also stands out as the
biggest recipient of other forms of renewable energy, with the largest number of
small wind and solar projects. In contrast, the Middle East has only a few
large-scale coal, solar, and oil-fired power plants. Chinese investment in
Europe and Central Asia, Oceania, North America and East Asia is more focused on
natural gas and other non-hydro renewable energy projects, and the scale of
installed capacity in these regions is relatively small (Figure 3).
Figure 3: Geographic Distribution of Power Generation of Different Sources with Chinese Investment and Finance Overseas
Source: China’s Global Power Data, Boston University Global Development Policy
Center.
Ammonia Is a Fuel For Power Plants Which Has Lots of Advantages
Japanese firm JERA, a joint venture between TEPCO and Chubu Electric, on October
13 issued a roadmap to achieve zero carbon emissions by 2050. The move is
notable for the company whose business includes a sizable global liquefied
natural gas (LNG) portfolio of five upstream projects, 20 fleet carriers, an LNG
tank capacity that is equivalent to 30 percent of Japan’s tank capacity, and 11
LNG terminals in Japan. It also owns 27 thermal power stations in Japan, which
have a total capacity of 70 GW, and another 30 power projects, including
renewables, in more than 10 countries, which amount to about 9 GW.
Under
its roadmap, JERA plans to shutter its entire 2.2 GW supercritical coal power
generation fleet in Japan by 2030, and then gradually increase the ratio of
mixed combustion of fossil fuels to ammonia and hydrogen at ultrasupercritical
plants. That effort will begin within the next decade with projects to
demonstrate ammonia co-firing at the 4.1-GW Hekinan Thermal Power Station in
Aichi Prefecture (see figure below), and a hydrogen co-firing demonstration at
another power plant.
Over
the next decade, JERA also plans to promote offshore wind power projects and
further improve the efficiency of LNG thermal power generation. In the first
half of the 2030s, the company wants to achieve a 20 percent ammonia co-firing
rate at all its coal plants, and it is seeking to shift to 100 percent ammonia
by the 2040s. It notes, however, that its zero-carbon business strategy will
depend heavily on “advances in decarbonization technology, economic rationality,
and consistency with government policy.”
To
that end, JERA is developing the decarbonization technologies it plans to use.
Its ammonia plans stem from a collaboration with Japanese giants IHI Corp. and
Marubeni Corp., along with Australian natural gas and LNG producer Woodside
Energy. The companies launched a feasibility study with Japan’s New Energy and
Industrial Technology Development Organization (NEDO) this March. Slated to wrap
up in February 2021, the study will essentially involve a technical analysis to
inform JERA’s demonstration for direct use of ammonia as a fuel source in
pulverized coal boilers, as well as evaluate the economics of equipment costs,
operational costs, and the costs of producing and transporting ammonia.
Interest in Ammonia Is Growing
Ammonia—a compound of nitrogen and hydrogen—“can efficiently transport and store
hydrogen at low cost and in addition to its role as an energy carrier, it can be
directly used as fuel in thermal power generation,” the companies explained.
According to the Ammonia Energy Association (AEA), interest in exploring the gas
as a decarbonizing fuel has soared of late because it does not emit carbon
dioxide when it is burned. To date, the 2004-established industry coalition has
76 members. Its power generating members include AES, Arizona Public Service,
ENGIE, ITM Power, Nebraska Public Power District, Origin Energy, Shell, Total,
and Tri-State Generation and Transmission.
IHI,
JERA, and Marubeni, notably, are board members on Japan’s Green Ammonia
Consortium, and their emphasis on ammonia is backed by Japan’s International
Resource Strategy, which the Ministry of Economy Trade and Industry (METI)
issued in March. The strategy explicitly calls for demonstration projects to
promote ammonia as a fuel. Japan, notably, also announced on Oct. 28 it will
seek to be carbon neutral by 2050, a shift that will require a fundamental
revision of its policy on coal plants.
But
as the AEA noted, much progress has already been achieved in Japan, led mainly
by IHI, which is already developing a broad portfolio of ammonia fuel
technologies, including a solid oxide fuel cell, gas turbine, industrial
boilers, and co-fired thermal power boilers. Ammonia-coal co-firing has also
already been demonstrated, first by Chugoku Electric in July 2017 at its 156-MW
Mizushima Thermal Power Station Unit 2 with a fuel mix composed of 0.6 percent
to 0.8 percent ammonia, and then by IHI in March 2018 at a “large-capacity
combustion facility” in Aioi City, with a fuel mix composed of 20 percent
ammonia. As Bunro Shiozawa, a Senior Associate at Sumitomo Chemical Co. wrote in
an AEA blog post this October, IHI’s demonstration, which involved a
coal-ammonia burner that can be attached to an existing coal plant, confirmed
that at 20 percent ammonia co-firing carbon emissions decreased 20 percent, and
while nitrogen oxide could be largely reduced, the boiler’s heat rate did not
change significantly.
Under
the study with NEDO, four companies plan to survey the full ammonia-coal
lifecycle from ammonia production to power generation. IHI plans to evaluate the
thermal efficiency of ammonia co-firing using a numerical analysis, but the
company will also study ammonia storage and supply facilities, as well as
ammonia co-firing burners.
INDUSTRY NEWS
NTPC
Dadri is Striving to Become the Cleanest Coal-fired Power Plant
NTPC
Dadri is striving to become the cleanest coal-fired power plant in the country
and is complying with all the CPCB guidelines on emissions.
The
country’s largest power producer said all the emission parameters are being
monitored online and transmitted to the Central Pollution Control Board (CPCB)
on a real time basis. “Flue gas emissions and particulate matter are well within
the CPCB norms, with high-efficiency ESP in service in all the four 210-MW and
the two 490-MW units,” the company said.
This
power plant becomes the first one to install a Dry Sorbent Injection (DSI)
system which has been installed in 210 MW units for the first time in the
country with technology from UCC (United Conveyor Corporation), USA and now all
the four units are meeting emission norms.
NTPC
Dadri has also pioneered co-firing of biomass pellets along with coal in the
boilers. The pellets are made of husk or agro-residue, which would have been
burnt otherwise in the fields increasing the pollution in the NCR region.
More
than 8000 tons of pellets have been fired in the boilers of NTPC Dadri, which is
equivalent to almost 4000 acres of farm fire avoided.
NTPC
Dadri has set new benchmarks in water consumption, going beyond compliances, by
implementing a Zero Liquid discharge system, and a rain water harvesting system.
Serbian Utility Orders Two Mitsubishi Emissions Reduction Systems For Coal-Fired
Plant
Mitsubishi Power
will deliver two sets of flue gas desulfurization systems for a Serbian
coal-fired power plant.
The
Japan-based Mitsubishi Power received an order for two FGD systems for the
Nikola Tesla B coal-fired station. The company previously got the order for
another two FGD sets for the Tesla A plant.
The
newly-ordered FGD systems each have a flue gas desulfurization capacity of 670
MW, with operation scheduled to commence in 2024. Together with the two sets
ordered for the Nikola Tesla A plant, of which the construction is on-going, the
new installations will further reduce sulfur dioxide (SO2) and
particulates emissions, thereby helping to meet European Union (EU)
environmental standards and support Serbia’s quest to join the EU.
The
Nikola Tesla B power plant is operated by Public Enterprise Electric Power
Industry of Serbia (EPS). It is located some 60 kilometers southwest of
Belgrade, the capital, and roughly 20 kilometers west of the Nikola Tesla A
plant, the country’s largest. The newly ordered two sets of FGD systems will be
installed in units 1 and 2, which have a total output of 1340 MW.
In
accepting the new order, Mitsubishi Power has formed a consortium with three
local companies: Energotehnika Juzna Backa, Gosa Montaza AD, and EX ING B&P
Construction. Mitsubishi Power will take charge of project management and all
facets from basic design to delivery and installation of core equipment, and the
consortium partners will perform local supply, civil engineering, and
installation work.
FGD
system design and coordination will be undertaken at Mitsubishi Power’s Kure
Works in Hiroshima Prefecture. The project will be wholly financed by EPS.
The
Nikola Tesla B power plant, like Nikola Tesla A, uses lignite coal as fuel,
which has higher levels of sulfur and lower caloric value than other coal types.
The added installation of Mitsubishi Power’s FGD systems will reduce emissions
of SO2 and particulates. SO2 emissions will be cut by 96
percent.
Sumitomo SHI FW Awarded CFB Boiler Modernization Project in Austria
Sumitomo SHI FW has been awarded a contract by Sappi Europe to modernize an
existing circulating fluidized bed (CFB) boiler, which will result in a 30
percent CO2 emissions reduction at the Gratkorn Pulp & Paper mill.
SFW
will design, supply and erect the project, which includes modifications to the
lower furnace, new heat shift system, biomass feeding system, bottom ash
extraction system, and emissions control system, as well as dismantling and
commissioning. The modernization will allow the plant to completely shift from
coal to multiple sustainable and renewable fuels. The new emissions control
system include bag filters and selective non-catalytic reduction (SNCR), which
will ensure the plant meets the newest Best Available Technologies (BAT)
standards, especially regarding dust and NOx emissions.
“SFW’s mission is to help our customers achieve their climate targets
efficiently and cost-effectively. With this project, Sappi will be one step
closer to achieving their decarbonization commitments, while reaping the
benefits of reliable energy supply and extending the lifetime of their current
assets”, says Kari Kohvakka, SVP Service at SFW.
The
project will be completed at the end of 2021.
B&W
Renewable to Provide Upgrades To Reduce Emissions and Increase Efficiency of
Scotland Waste-to-Energy Plant
Babcock & Wilcox (B&W) announced that its B&W Renewable segment has been awarded
a contract to provide upgrades to Shetland Islands Council’s energy recovery
plant in Lerwick, Scotland, to reduce emissions and increase efficiency.
Under
the contract, which is valued at more than $3 million, B&W Renewable will
design, supply and install new, patented water-cooled wear zones, a secondary
air system, waste feed hopper and associated equipment, and provide a control
system upgrade.
The
equipment upgrades, which utilize proven, patented Babcock & Wilcox Vølund A/S
technology, are intended to reduce emissions, while also boosting the plant’s
municipal waste-processing capacity by 15 percent. The plant provides hot water
to the local district heating company, Shetland Heat, Energy & Power Ltd., which
supplies more than 1200 local homes and businesses.
"B&W
Renewable is proud to be a leading provider of equipment and services to the
renewable energy plant fleet in Europe and throughout the world," said B&W Chief
Operating Officer Jimmy Morgan. "We look forward to executing this important
project and appreciate the confidence Shetland Islands Council has shown in our
clean energy technologies."
B&W
Renewable will also provide grate and boiler maintenance services, training,
start-up support and performance optimization services for the energy recovery
plant. The project is scheduled for completion and handover to the customer in
the fall of 2021.
B&W
Renewable’s waste-to-energy technologies are robust and effective energy options
designed to reduce CO2 emissions and replace fossil fuels.
Technologies offered include combustion systems, grates and stokers, waste fuel
feeder systems, water-cooled wear zones, emissions control, flue gas treatment
and more.
DSI
Webinar Recording Now Available From DSUA
For
anyone interested in viewing the recording from the webinar this week on Dry
Sorbent Injection (DSI) refer to the following:
link:
https://www.youtube.com/watch?v=VWOVPBXPb9s
If
you wish to view any of the past DSUA webinar recordings, please refer to
following:
Spray
Dryer Absorbers (SDAs):
https://www.youtube.com/watch?v=da-nyT88yh0&t=1609s
Circulating Dry Scrubbers (CDS):
https://www.youtube.com/watch?v=yx1hjaZcWUo&t=5s
Gasification India 2020
Dubai
Builds First Coal-fired Power Plant Despite Pledging Lowest Carbon Footprint in
The World by 2050
A new
wonder is rising in the southern desert of Dubai against the backdrop of Persian
Gulf beaches, but it's not another skyscraper to grace the futuristic sheikhdom.
Instead, it's one of mankind's oldest power sources gaining its own space on the
oil-rich Arabian Peninsula — a coal-fired power plant.
The
construction of the $3.4 billion Hassyan plant in Dubai appears puzzling, as the
United Arab Emirates hosts the headquarters of the International Renewable
Energy Agency. It's also building the peninsula's first nuclear power plant and
endlessly promotes its vast solar-power plant named after Dubai's ruler. Dubai
has also set the lofty goal of having the world's lowest carbon footprint in the
world by 2050 — something that would be impacted by burning coal.
The
coal plant's arrival comes as Gulf Arab nations remain among the world's
hungriest for energy and amid political concerns over the use of natural gas
imported from abroad, concerns underscored by a years-long dispute with
gas-producer Qatar, which is boycotted by four Arab nations, including the UAE.
“Dubai was really saying we're far too exposed on gas imports, those could be
interrupted by all kinds of things, the cost is very high and so we have to do
something else to diversify our fuel supply and bring down the total cost,” said
Robin Mills, the CEO of Qamar Energy, a Dubai-based consulting company. "They
got a very competitive offer on the coal plant ... and so the decision was
made.”
“If
they were making the decision today, would they make the same decision? Probably
not, to be honest," Mills said. “But once it was committed and once it was
substantially down the road, then they had to see it through.”
The
Dubai Electricity and Water Authority,
the sheikhdom's state-run utility, did not respond to
Associated Press
requests for comment.
Dubai, a one-time pearling port, first had an electrical power company in 1961,
some 10 years before it would join others to form the United Arab Emirates. In
the time since, Dubai has experienced rapid growth, fueled in part by allowing
foreigners to purchase private property. Skyscrapers sprung up, soaring into a
sky soon filled by aircraft of the state-owned long-haul carrier Emirates.
Massive malls enticed tourists, including one with its own ski slope.
All
these wonders — plus plants to desalinate the water needed to green its desert
dunes and air condition its interiors — fuel Dubai's voracious appetite for
electricity. In 2012, Dubai produced 36,297 gigawatt hours of electricity,
according to the electricity and water authority. In 2019, that number jumped by
over 10,000 gigawatt hours to 46,704 — more power than the entire country of
Bulgaria generates. That's a lot of energy as 1 gigawatt can power roughly
300,000 homes in the West.
The
demand is the same across the Gulf Cooperation Council states, which include
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Electricity demand
across the GCC countries is “considered to be among the highest in the world,”
according to Saudi Arabia's King Abdullah Petroleum Studies and Research Center.
For
years in Dubai, nearly 100 percent of all power came from natural gas. While the
new Mohammed bin Rashid Al Maktoum Solar Park provided just over 3 percent of
demand last year, it still leaves the city-state dependent on gas — much of it
from Qatar. In February, the UAE announced finding a natural gas field
containing 2.27 trillion cubic meters, or 80 trillion standard cubic feet, of
gas between Abu Dhabi and Dubai, though that has yet to start producing
commercially. The Emirates' new nuclear power plant remains years behind
schedule.
Enter
the coal plant. The Hassyan power plant is being built in part by China, which
describes the plant as a “major engineering project of the Belt and Road
Initiative,” a project which seeks to expand its influence in Africa and Asia.
China anticipates that the plant, which has General Electric Co. involved in its
construction, will meet 20 percent of Dubai's electrical demand.
But
its construction comes as the world is warming, mainly due to rising levels of
carbon dioxide and other greenhouse gases in the atmosphere, according to the
vast majority of peer-reviewed studies, science organizations and climate
scientists. By far, most of the increase in temperature is the result of human
activity, which includes burning coal, oil and natural gas. Those warming
temperatures fuel extreme weather, such as powerful storms.
China
says the Hassyan plant has high-tech equipment to limit its emissions, but
carbon dioxide still will be emitted. Coal use has slowed in the West over
environmental concerns and public protests. But in Dubai, a hereditarily
governed sheikhdom where Sheikh Mohammed wields absolute power, the coal plant
was relatively quickly approved.
At
the time Hassyan was approved, “coal looked much cheaper than other sources of
energy,” said Aisha al-Sarihi, a Research Associate at the King Abdullah
Petroleum Studies and Research Center. “Now the renewables are much cheaper than
the coal itself.”
Al-Sarihi warns new costs could loom as well. Dubai's coal will need to be
imported, possibly from Australia or Indonesia. Possible carbon taxes could be
put on the coal, pushing down demand that in turn sees less of it mined —
further raising prices. China and India remain the world's top coal consumers.
But
for now, the Paris-based International Energy Agency predicts an 8 percent
decline in worldwide coal demand this year, the largest drop since World War II,
as demand for electricity has fallen due to an economic slowdown caused by the
coronavirus pandemic.
“The
use of coal in power generation is squeezed by low-carbon generation, including
hydro, wind, solar and nuclear power, which have been less affected by the
COVID-19 crisis,” the IEA said.
Hamon
Selected to Take Part in a Renewable Biomass Power Plant in Japan with an 8
Modules ACC
The
75-megawatt (MW) biomass power plant will use wood pellets and palm kernel
shells (PKS) as fuel source. An annual power generation of about 530,000 MWh is
expected, enough to meet the annual consumption of approximately 170,000
households.
Power
generation fueled by biomass is considered as carbon neutral as it only releases
carbon dioxide that was absorbed during the plant’s growth. Using biomass fuels
as an alternative to fossil fuels enables power generation to reduce CO2
emissions globally and consequently to contribute to the prevention of global
warming. As opposed to other renewables, biomass power generation can serve as a
baseload electricity source, as it is controllable and is not affected by
weather and/or atmospheric conditions.
CDC Approves 265-megawatt Coal-fired Power Plant Project in Oddar Meanchey
Province
The
Council for the Development of Cambodia (CDC) has issued an investment
certificate to Oddormeanchey Power Industrial Co., Ltd. to invest in a
265-megawatt coal-fired power plant, located in Oddar Meanchey province’s
Trapaing Prasat district.
According to a CDC’s announcement, with a total investment capital of US$294.3
million, the project is expected to create some 220 jobs for the locals.
The
company also secured an investment certificate from the CDC on a US$61-million
project of building 230 kilovolts transmission line from the location of the
approved coal-fired power plant to a sub-station in Siem Reap province.
Cambodia currently has three existing coal-fired power plants generating 740
megawatts of power in total to the main grid. These power plants are located in
Stung Hav district, Preah Sihanouk province.
Mitsubishi Electric First Half Revenue Decrease
Revenue in the first half decreased by 280.5 billion yen from the same period of
the previous fiscal year to 1902.0 billion yen as a result of decreased revenue
in all segments. Energy and Electric Systems segment saw a decrease in the
building systems business in Japan and Asia due to the impact of COVID-19
causing global stagnation of urban development and construction, while the
social infrastructure systems business increased particularly in the
transportations systems and the power systems businesses in Japan.
Industrial Automation Systems segment saw a significant decrease of the
automotive equipment business due to decreased demand for new cars in all
regions except for China. The factory automation systems business also decreased
due to stagnation in automotive-related demand worldwide and machinery- and
building-related demand in Japan. Home Appliances segment saw a decrease in air
conditioners due to limited economic activities outside Japan and restrained
capital expenditures worldwide.
Operating profit decreased by 52.8 billion yen from the same period of the
previous fiscal year to 61.3 billion yen due mainly to decreased profits in
Industrial Automation Systems and Home Appliances segments, while profits
increased in Energy and Electric Systems, Electronic Devices and Information and
Communication Systems segments. Operating profit ratio decreased by 2.0 percent
from the same period of the previous fiscal year to 3.2 percent.
Profit before income taxes decreased by 48.3 billion yen from the same period of
the previous fiscal year to 75.6 billion yen due primarily to a decrease in
operating profit despite an improvement in non-operating expenses owing to
decreased loss on foreign exchange. Profit before income taxes to revenue ratio
was 4.0 percent.
GE Transformation Continues
GE
Chairman and CEO H. Lawrence Culp, Jr. said, “I am proud of the GE team’s work
in the third quarter to build momentum while continuing to protect the safety of
our employees, serve our customers and communities, and preserve GE’s strengths.
We are improving our profit and cash performance with organic margin expansion
in every segment except Aviation, though orders more broadly remain under
pressure."
Culp
added, "We are managing through a still-difficult environment with better
operational execution across our businesses, and we are on track with our cost
and cash actions. While our work continues, GE’s transformation is accelerating,
and we expect Industrial free cash flow to be at least $2.5 billion in the 4th
quarter and positive in 2021. We remain focused on unlocking upside potential
for the long term.”
Gas
Power is supplying the first purpose-built hydrogen-burning power plant in the
U.S. with 7HA.02 turbines, which can transition to 100 percent hydrogen over
time. GE-Hitachi Nuclear Energy and TerraPower also won U.S. Department of
Energy funding for their Natrium™ sodium-fast reactor.
Renewable Energy launched the uprated 13-megawatt Haliade-X offshore wind
turbine to power what will become the world’s largest offshore wind farm, at
Dogger Bank.
Coal-Fired Generation Could Increase 20 percent in the U.S. in 2021
EIA
is currently projecting a turnaround for coal generation and coal consumption in
2021. As shown below, coal megawatt-hours and coal burn (tons) are expected to
increase by about 20 percent, recovering most of the ground lost in 2020, while
gas-fired generation drops by 15 percent. After accounting for other coal demand
sectors and inventory changes, miners are expected to enjoy a 19 percent
increase in production, a reprieve from the 2020 disaster.
Table
1. Generation, consumption, and prices. Source: EIA
This forecast pivots on a key factor — an expected increase of 51 percent in the market price of natural gas. The EIA expects the Henry Hub price for natural gas in 2021 to remain above $3.00 per MMBtu for the entire year, something that has not happened since 2014. The assumption is that high natural gas prices will lead generators away from gas and back to coal.Talen Energy Announces Closure of Three Plants by 2025.
Talen Energy has announced it will close three coal-fired power plants by the end of 2025; the 1758 MW Montour plant in Pennsylvania and the 1370 MW Brandon Shores plant, and the 359 MW Wagner plant in Maryland. The company said it plans to establish a 100 MW solar plant next to the Montour plant as part of a 1000 MW portfolio of new solar and electricity storage projects. Talen Energy had previously announced its plan to close the 1616 MW Brunner Island plant in Pennsylvania by the end of 2028. The company said it is negotiating an agreement with the Sierra Club to “avoid future litigation or permit disputes related to coal at Talen's transitioning sites.” Both the company and Sierra Club called on Pennsylvania and Maryland decision-makers to ensure transition support for affected workers and communities and to invest in clean energy.
AEP
to Shut Down or Refuel 5.6 GW by 2030
American Electric Power (AEP) will shut down or refuel 5.6 GW of its 2020
coal-fired power fleet by 2030 to comply with environmental rules — including
recent revisions governing federal coal ash and effluent limitations — and
rebalance its portfolio in a bid to meet climate goals.
Since
2010, AEP has already sold or retired nearly 13.5 GW of coal power. This year
alone, keeping with ambitions it announced in September 2019 that it would seek
to go net-zero by 2050, it has shuttered two coal units — a total 1.1 GW: the
651-MW Conesville 4 in Ohio, and the 460-MW Oklaunion plant in Texas.
In
its June 2020 corporate accountability report, the company reiterated plans to
retire the 650-MW Dolet Hills Station in Louisiana by 2021; the 469-MW
Northeastern Unit 3 in Oklahoma by 2026; the 1.1-GW Rockport Unit 1 in Indiana
by 2028; and AEP’s 595-MW portion of the three-unit, 1.8-GW Cardinal Plant in
Ohio by 2030.
AEP Could Spend $1 Billion to Meet Environmental Requirements
AEP
will meet the U.S. Environmental Protection Agency’s (EPA’s) Coal Combustion
Residuals (CCR) rule and will also retire the 580-MW Pirkey Plant in Hallsville,
Texas, in 2023. AEP will also “cease using coal” at the 1.05-GW Welsh Plant in
Pittsburg, Texas, in 2028, the company said on November 5.
Meanwhile, though AEP plans to make upgrades to the ash pond system and continue
operation of the 1.31-GW Unit 1 at the two-unit Rockport Plant in Indiana — and
continue to run that unit until its previously announced retirement date of 2028
— it will not renew the lease for the 1.31-GW Unit 2 when it expires in 2022.
To
comply with existing regulations, AEP plans to shutter existing ash ponds and
replace them with dry bottom ash handling systems or new lined ash ponds at four
other plants — a combined capacity of 6 GW — to meet requirements under the
EPA’s CCR and Effluent Limitations Guidelines (ELG) rules by 2023. Three of
these facilities are in West Virginia: the 2.93-GW Amos Plant in Winfield, the
1.3-GW Mountaineer Plant in New Haven, and the 1.56-GW Mitchell Plant in
Moundsville. The fourth facility is the 258-MW Flint Creek plant in Gentry,
Arkansas.
AEP
said two other coal plants — the 477-MW Turk Plant, in Fulton, Arkansas, (and
which is the nation’s only ultrasupercritical unit) and the 469-MW Northeastern
3 in Oologah, Oklahoma — currently meet CCR and ELG standards. But as noted
above, AEP will shutter Northeastern 3 by 2026.
In
its latest 10-Q filing on Oct. 22, for example, AEP points to uncertainty
related to periodic revisions to the National Ambient Air Quality Standards
(NAAQS); regional haze requirements under the Clean Air Visibility Rule;
regulation of hazardous air pollutant emissions under the Mercury and Air Toxics
Standards (MATS); implementation and review of the Cross State Air Pollution
Rule; and the EPA’s regulation of greenhouse gas emissions under Section 111 of
the Clean Air Act.
Pivotal to AEP’s more recently announced closures are the CCR and ELG, Obama-era
rules that the Trump administration recently revised. This August, the EPA
promulgated a final CCR rule to include a requirement that unlined CCR storage
ponds must cease operations and initiate closure by April 2021. While the
revised rule provides two options that could allow facilities to extend the date
(to October 2023 or October 2028) by which they must cease receipt of coal ash
and close the ponds, the deadline for seeking an extension under either option
is quickly approaching—November 30, 2020.
The
EPA’s October 2020–finalized ELG rule, meanwhile, establishes additional options
for reusing and discharging small volumes of bottom ash transport water, and it
provides an exception for retiring units, and it also extends the compliance
deadline to no later than December 2025. But that rule, along with the EPA’s
recent actions on flue gas desulfurization wastewater and bottom ash transport
water permitting, could still require technology additions and retrofits.
At
the same time, AEP is complying with a March 2020–enacted Virginia law that
requires it to close ash disposal units at the retired Glen Lyn Station by
removing all coal combustion material, a project that it says will boost costs
by up to $199 million.
For
now, AEP suggests, that future investments to meet existing and proposed
requirements could range from about “$500 million to $1 billion through 2026.”
U.S. Utility Proposes Just Transition Strategy For First Nations Communities
Arizona Public Service
is seeking Arizona Corporation
Commission approval for a US$144 million 10-year just transition plan for
three Navajo communities affected by the closure of two coal-fired power plants
and an associated mine. The plan proposes US$144 million be paid over 10 years
for projects including electrification of housing and businesses, economic
development projects and support for the Navajo gaining rights for cooling water
allocated to the Four Corners Power Plant and San Juan Generating Station. The
package also includes support for issuing a request for proposals for 250 MW in
renewable projects on Navajo land and a further 350 MW within a year of the
closure of the 1636 MW Four Corners plant which is due to close by 2031. The
Four Corners plant employs 321 people, mostly Navajo, with a similar number at
the nearby mine owned by the Navajo Transitions Energy Company.
ANDRITZ to Supply Another High-Efficiency Powerfluid Circulating Fluidized Bed
Boiler For a Biomass Power Plant in Japan
International technology group ANDRITZ has received an order from Toyo
Engineering Corp., Japan, to deliver a PowerFluid circulating fluidized bed
boiler with a flue gas cleaning system.
The
boiler will be part of a new biomass power plant to be built in Gamagori in
Aichi Prefecture, Honshu Island, some 300 km southwest of Tokyo, Japan.
Commercial operations are scheduled to begin in 2023.
The
PowerFluid boiler to be supplied by ANDRITZ features low emissions, high
efficiency and availability, as well as high fuel flexibility. It forms an
essential part of a high-efficiency biomass power plant for supply of green
energy to the national grid. The biomass power plant fired with wood pellets and
palm kernel shells will generate around 50 MWel of power.
This
is the eighth order in two and a half years for supply of an ANDRITZ PowerFluid
circulating fluidized bed boiler for the Japanese market.
Fuel
Tech Reports Higher 2020 Third Quarter Revenues
“Although we have experienced some deferred decision-making on the part of some
customers due in part to uncertainty created by the effect of COVID-19 pandemic,
I am very proud of how our team has continued to navigate these challenging
times. As a result of their efforts, we are seeing encouraging signs across our
enterprise,” said Vincent J. Arnone, President and CEO. “Within our Air
Pollution Control (APC) business segment, we remain intensely focused on
providing custom-engineered solutions that fulfill the unique needs of each of
our customers, and expect the final decisions to be made on multiple projects by
the end of the year which, if Fuel Tech’s bids are selected, would increase
backlog for 2021 and beyond by $10 to $15 million.
Consolidated revenues increased 26.4 percent to $8.2 million from $6.5 million
in 3rd quarter 2019, reflecting higher revenue in both the APC and
FUEL CHEM segments.
As
previously announced, Fuel Tech reached a settlement with its insurance carrier
that resulted in the company receiving $2.6 million in proceeds related to an
outstanding claim that was previously reported in 2019. The proceeds of the
settlement were received in 4th quarter 2020, however, in 3rd
quarter 2020 the company recorded a receivable for the proceeds that reduced
cost of sales at the APC business by a like amount.
Gross
margin for 3rd quarter 2020 was 72.4 percent of revenues compared to
44.8 percent of revenues in 3rd quarter 2019, primarily reflecting
the impact of the settlement on APC costs of sales. Excluding the settlement,
consolidated gross margin for 3rd quarter 2020 was 40.7 percent.
SG&A
expenses declined by 16.7 percent to $3.2 million from $3.8 million in 3rd
quarter 2019, reflecting lower administrative and professional services costs.
Net
income from continuing operations was $2.4 million, or $0.10 per share, compared
to net loss from continuing operations of $(1.3) million, or $(0.05) per share,
primarily due to the impact of the aforementioned settlement in Q3 2020.
Babcock & Wilcox Enterprises Reports Positive Third Quarter 2020 Results
“Our
3rd quarter results improved significantly, driven by a loss recovery
from our historical European EPC loss projects, and reflecting the ongoing
execution of our turnaround strategy," said Kenneth Young, B&W's CEO. "Despite
the challenges presented by COVID-19 and its impact on revenues across our
segments, adjusted EBITDA was roughly break-even for the quarter before the
benefit of the loss recovery, demonstrating the benefits of our cost-savings
initiatives. Our rebranding initiative announced in August, coupled with our
reorganization and international expansion, is accelerating our growth and drove
our bookings of $177 million in the quarter, an improvement of 106 percent
compared to the 3rd quarter of 2019. Our pipeline of over $5 billion
of identified project opportunities that we expect to bid through 2023 continues
to strengthen, and the expansion of our international presence is progressing as
planned."
“While COVID-19 impacted all of our segments in the third quarter, a number of
projects that were previously delayed or deferred due to the pandemic are
restarting," Young added. "We continue meeting customer and market needs by
providing technology solutions to help achieve a clean, sustainable energy and
industrial infrastructure. This includes our broad suite of advanced renewable,
environmental and thermal technologies, such as high-performance waste-to-energy
systems, innovative submerged grind conveyor systems, and flexible natural
gas-fired package boilers, as well as strategic partnerships to accelerate
advanced energy storage solutions."