FGD and DeNOx
NEWSLETTER
December 2020
No. 512
Table
of Contents
REGULATORY
·
EPA Proposes to Approve
Partial Coal Ash Permit Program
·
EPA Sued Over Coal Rule
Revisions
·
Senate Hearing Addresses
Forest Health and Biomass Energy Act
·
Georgia Power Continues
to Make Progress on Ash Pond Closure at Plant Hammond With Dewatering Process
Scheduled to Begin in December
·
Biden Poised to Reset
Country’s Course on Climate Change
·
Indian Government Allows
Coal Switching Without Environmental Review
·
NTPS Ash Pond Spill
Results in 4 Unit Closures at Bihars
MARKETS
·
Vietnamese Utility Signs
Deal For Laos Coal Plant
·
Prospects For The Indian
Coal Sector in a Post-Covid-19 Era
·
Coal Remains Top Fuel
Source of PH Power Plants in The Philippines
·
Zimbabwe’s Energy Policy
Still Favoring Coal Over Renewables
·
Renova Moves Forward
With Sixth Biomass Power Plant
·
Coal-fired Generation
Could Increase 20% in the U.S. in 2021
·
China Could Keep
Building New Coal-Fired Power Plants For at Least the Next Five Years
·
Mitsubishi Power Signs
MOU with Indonesia's PLN Group and Bandung Institute of Technology (ITB) on
Joint Policy Proposal to Promote Biomass Co-firing at Thermal Power Plants in
Indonesia
·
Global Emissions Now
Down by 7%
INDUSTRY NEWS
·
B&W Thermal Awarded $20
Million Installation Contract to Upgrade and Extend Lifespan of Power Plant
·
ANDRITZ to Supply Flue
Gas Desulphurization Plant to TATA Power, India
·
Royal Group Subsidiary
Strikes EPC Contract For Coal Plant
·
Enviva Commemorates
First Shipment of Sustainable Biomass to Japan
·
Sempra Donates $2M to
Salk Institute For R&D Efforts on Plant-Based Carbon-Capture
·
Alabama Power Chooses
Mitsubishi Power JAC Gas Turbine Power Island Combined with Black & Veatch EPC
Experience for Plant Barry
·
SaskPower Names Burns &
McDonnell as EPC Contractor for Great Plains Power Station
·
GE Secures HA Gas
Turbine Order for Naepo District Heating Plant in South Korea
·
Guangdong Energy Group
Awards Contract to GE and Harbin Electric Corporation for HA Technology to Boost
China’s Greater Bay Area’s Transition from Coal to-Gas Power
·
Jacobs Awarded Pulau
Indah Power Plant in Malaysia
·
Eskom Directed To Clean
Up Three Polluting Coal Plants
·
RWE Plant Converts Fifth
Unit to Biomass
·
Hamon Selected to Take
Part in a Renewable Biomass Power Plant in Japan With an 8 Modules ACC
·
Babcock & Wilcox Thermal
to Supply Components for Natural Gas Upgrade at Power Plant in North America
·
Camfil PowerEye Guides
Operators on Inlet Filter Operation
·
AEP Could Spend $1
Billion to Meet Environmental Requirements
·
Mitsui E&S Restarts
Construction of Indonesian Coal-fired Power Plant
·
Sempra Energy and Salk
Institute Announce Project to Advance Plant-based Carbon Capture and Storage
Research
·
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
·
Mitsubishi Power
Receives Follow-up Order from Serbia for Two Sets of World's Largest Flue Gas
Desulfurization Systems
·
NTPC has Awarded 50 GW
of FGD Contracts
·
GE Power to Supply DeNOx
System to NTPC Baruni
·
Doosan Lentjes is to
Deliver Lot 1 of the New Wood-Fired Combined Heat and Power Plant in Dinslaken
·
Doosan Heavy Industries
& Construction and Doosan Lentjes to Deliver Their First Joint Waste-To-Energy
Project in Poland
·
Thermax Registers 19%
Higher Net Profit in Q2
·
CECO Environmental Corp
Gaining Momentum Despite Economic Climate
REGULATORY
“EPA continues to encourage other states to assume oversight of coal ash
management within their borders,” said EPA Administrator, Andrew Wheeler. “Texas
deserves credit for taking over this responsibility and we are committed to
working with the states as they establish coal ash programs tailored to their
unique circumstances that are protective of human health and the environment.”
EPA has preliminarily determined that the partial Texas permit program
application meets the standard for approval. Congress recognized the essential
role of this local expertise in the Water Infrastructure Improvements for the
Nation (WIIN) Act of 2016, which provided states the ability to develop and
submit permit programs to EPA for approval.
Major portions of the 2015 Final Rule on Coal Combustion Residuals Generated
from Electric Utilities that established national standards for the disposal of
coal ash are in effect and remain unchallenged. Once a state has an approved CCR
permit program in place, the WIIN Act contains provisions for how and when
states must update their approved programs when changes are made to the CCR
requirements at the federal level. Texas did not apply for certain provisions of
the federal CCR regulations for its permit program, further explained in the
‘Federal Register’ notice, thus is seeking approval for its partial program.
EPA is soliciting comments on this proposal for 60 days, during which a virtual
public hearing will be held for interested persons to present information,
comments, or views concerning this proposed program.
EPA encourages all states with coal ash facilities to apply to establish their
own permit program as the states of Georgia and Oklahoma have done. Many states
are already engaging with EPA on how to set up their own program and how their
current state regulations can be revised to incorporate the federal
requirements.
EPA Sued Over Coal Rule Revisions
A coalition of nine environmental groups announced that they were suing the
United States Environmental Protection Agency over finalized revisions made to
coal ash and coal plant wastewater regulations.
Specifically, the lawsuits point out that the regulation’s extension of the life
of giant pits of toxic coal sludge risk contamination of nearby water sources
and that weakened rules regarding wastewater from coal-fired power plants would
be bad for water quality.
Waste Stream Rules
In 2015, the EPA published a set of requirements on the management of coal
combustion residuals or coal ash (CRR) in landfills and impoundments. The
requirements for CRR established corrective action, closure and post closure,
technical standards, and inspection, monitoring, recordkeeping and reporting for
a variety of waste streams, specifically, fly ash, bottom ash, boiler slag and
flue gas desulfurization materials generated from coal-fired electric utilities.
Finalized back in July, the EPA announced that it had made several changes to
the regulations for CRR to implement the court’s vacatur of certain closure
requirements as well as adding provisions that enhance the public’s access to
information about the management of coal ash at electric utilities.
“Today’s action makes changes to the closure regulations for coal ash storage
that enhance protections for public health while giving electric utilities
enough time to retrofit or replace unlined impoundment ponds,” said EPA
Administrator Andrew Wheeler at the time. “The public will also be better
informed as EPA makes facility groundwater monitoring data more accessible and
understandable.”
According to the EPA, the final rule requires all unlined surface impoundments
to retrofit or close, not just those that have detected groundwater
contamination above regulatory levels. The rule also changes the classification
of compacted-soil lined or “clay-lined” surface impoundments from “lined” to
“unlined,” which means that formerly defined clay-lined surface impoundments are
no longer considered lined surface impoundments and will require retrofitting or
to be closed.
Any unlined surface impoundments and units that failed the aquifer location
restriction must cease receiving waste and initiate closure or retrofit by April
11, 2021. However, the EPA is working to finalize revisions regarding
alternative closure provisions that would grant certain facilities additional
time to develop alternative capacity to manage their waste streams before they
stop receiving waste and close their surface impoundments.
Since publishing the revisions, the EPA has also revised the annual groundwater
monitoring and corrective action report requirements to make the data easier for
the public to understand and evaluate, including a requirement to summarize the
results in an executive summary, in addition to revising the CCR website
requirements to ensure that relevant facility information required by the
regulations is immediately available to the public.
The following month, the EPA issued another finalized revision, this time
focusing on effluent guidelines and standards for “steam electric” power plants.
The final rule revised a 2015 Obama-era regulation.
“President Trump and his Administration understand that protecting our water
quality doesn’t have to destroy jobs and raise electric rates” said U.S.
Congressman David McKinley (R-West Virginia) at the time.
“These revisions to the Steam Electric Effluent Limitation Guidelines will
actually reduce more pollution than the Obama-era rule, while reducing
compliance costs and allowing for more flexibility. This is just the latest
example of the Trump Administration’s commitment to promoting American energy
while protecting public health.”
The agency’s final Steam Electric Reconsideration rule revises requirements for
two waste streams from steam electric power plants: flue gas desulfurization
wastewater and bottom ash transport water, but also changes:
·
Technology-basis for treatment of FGD wastewater and BA transport water.
·
Establishes new compliance dates.
·
Revises the voluntary incentives program for FGD wastewater; and
·
Adds subcategories for high-flow units, low-utilization units and those that
will cease the combustion of coal by 2028 and finalizing requirements that are
tailored to facilities in these subcategories.
The rule gives facilities until the end of 2025 to be compliant and exempts
facilities that are expected to close by 2028.
The Lawsuits
Starting at the beginning of November, a coalition of nine environmental groups
announced that they were suing the EPA over weakened regulations governing
wastewater from coal-fired power plants. The lawsuit refers to the revised rule
published in August.
“Trump's EPA is propping up a dying industry that has put our health at risk for
decades, and fueled the climate crisis, by giving them a free pass to continue
to dump deadly pollution into our water. This rule puts the most vulnerable
communities at further risk,” said Jennifer Peters, Clean Water Action’s water
programs director, in a statement.
By the end of the month, the environmental groups announced a second lawsuit,
this one regarding July’s coal ash revisions, which now allow for more than 400
coal ash pits—where coal residue is mixed with liquid and stored in open-air
pits—across the nation to stay open as late as 2038.
In a statement announcing the suit, Earthjustice attorney Lisa Evans said,
“Right now toxic chemicals are poisoning water across the country because of
dirty coal plants. The Trump administration acted illegally when it gave coal
plants many more years to dump toxic waste in pits that contaminate waterways
and drinking water sources. Instead of acting in the best interests.
Senate Hearing Addresses Forest Health and Biomass Energy Act
A
county official from Arizona offered testimony in favor of the Forest Health and
Biomass Energy Act during a Senate hearing held November 18. The bill,
introduced by Senator Martha McSally (R-Arizona), on September 16 aims to
incentivize the removal of dangerous overgrowth in forests.
The
legislation would advance forest restoration and fire resilience by
incentivizing biomass energy development as a method to reduce hazardous fuel
build-up in fire-prone forests. It would also direct the administration to
assess the biomass energy fuel potential in U.S. forests with a focus on
identifying the most viable sources for energy use, such as ladder fuels and
byproducts of forest restoration, including branches, slash and other low-value
biomass. In addition, the bill would establish a fund using a percentage of
timber sale revenues to assist timber operators and biomass energy producers
with the collection, harvesting and transportation of biomass material out of
high hazard areas.
Art
Babbott, county supervisor for Arizona’s Coconino County, offered testimony in
support of the bill during the November 18 hearing. He has served as a chair for
the Four Forest Restoration Initiative, an ambitious 2.4-million-acre landscape
scale restoration efforts spanning four forests across eastern and northern
Arizona.
Coconino County is the second largest county in the contiguous U.S. and just 12
percent of its total landmass is privately owned, Babbott explained. The county
is home to the largest ponderosa pine forest in the world. Like so many western
communities, he said northern Arizona has increasingly experienced destructive
wildfires, costing local, state and federal entities hundreds of millions of
dollars in suppression and recovery costs.
According to Babbott, catastrophic wildfire and post-fire flooding are the
number one public health and safety issues and risks facing Coconino County and
its communities.
“Landscape scale forest restoration cannot succeed without viable private sector
forest industry partners,” Babbott said, noting the lack of industry capacity
for biomass disposal has created severe impediments to the successful
implementation of the restoration initiatives.
“The
Forest Health and Biomass Energy Act addresses arguably the most critical
bottleneck in moving landscape scale restoration efforts forward,” Babbott said.
“That is how do we deal with the millions of tons of the no to negative value
biomass and slash that must be removed to serve our restoration goals and
objectives.”
“To
put this in perspective, an average of 30 tons of negative to no value biomass
comes off every restored acre in northern Arizona,” he added. “If we do not have
strategies to deal with the tens of millions of tons of biomass and fuel loads
on these Forest Service lands, we will not reduce the threats of catastrophic
fire and the subsequent ecological sterilization of millions of acres of public
land. This bill is an important step to changing the narrative that plays out in
the front pages of newspapers each fire season in our communities every year as
well.”
Babbott said the bill plays a critical vehicle to moving the conversion from the
biomass bottleneck forward. “We should not get sidetracked over whether or not
12 inches, 14 inches or 10 inches is the correct dimension for no value
designation,” he added. “It is the big picture approach that needs to be
supported at this point, not every last detail of the proposal. The fact is
there is a broad consensus among diverse stakeholders that we must make progress
on the biomass question if we are to make progress on reducing the threat of
catastrophic fire in our communities.”
Babbott stressed that “expanding biomass energy opportunities serves in reducing
carbon emissions, protecting public safety and infrastructure and puts into
action the understanding that prevention is a far more fiscally responsible
strategy than paying for fire suppression and post fire cleanup.”
In
his written testimony, Babbott noted that Arizona has only one 30 megawatt (MW)
bioenergy plant. An additional 90 MW of biomass energy capacity would be needed
to consume the biomass residue that will be produced form the Four Forest
Restoration Initiative alone.
Georgia Power continues to
make progress towards the closure of four ash ponds at Plant Hammond with the
dewatering process scheduled to begin in December. Dewatering marks a
significant step towards completing the closure process, and Georgia Power's ash
pond closure plan for Plant Hammond is specifically designed for the site
to help ensure water quality is protected every step of the way.
Three
ash ponds at Plant Hammond will be completely excavated, with the ash stored in
a permitted, lined landfill and one ash pond will be closed in place using
proven engineering methods and closure technologies. Ash pond closures are
site-specific and consider multiple factors, such as pond size, location,
geology and amount of material; and each closure is certified by a team of
independent, professional engineers.
"As
we begin the dewatering process at Plant Hammond, we are pleased with the
progress we have made on our ash pond closures at all of our plants across the
state," said Dr. Mark Berry, vice president of
Environmental & Natural Resources for Georgia Power. "We continue to focus on
safety and meeting all requirements throughout the process to fulfill our
longstanding commitment to protect the environment, our local communities and
water quality every step of the way. Throughout the process, clear communication
to our customers and the community about our progress remains a priority."
The
ash pond dewatering plan for Plant Hammond has been approved by the Georgia
Environmental Protection Division (EPD) and describes the water treatment
system, controls and monitoring that will be used during the process to help
ensure that the water discharged is protective of water quality standards. The
planned on-site closure methods are being permitted and regulated by the EPD.
Communication regarding the closure plan is provided through EPD permitting
notifications as well as posting on Georgia Power's website.
Georgia Power first announced plans to permanently close all of its ash ponds
in September
2015,
with initial plans released in June
2016.
Georgia Power's ash pond closure plans fully comply with the federal Coal
Combustion Residuals (CCR) rule, as well as the more stringent requirements of Georgia's state
CCR rule. Georgia was
one of the first states in the country to develop its own rule regulating
management and storage of CCR such as coal ash. The state rule, which goes
further than the federal rule, regulates all ash ponds and landfills in the
state and includes a comprehensive permitting program through which the EPD will
approve all actions to help ensure ash pond closures are protective of water
quality.
Since
2016, Georgia Power has installed more than 550 groundwater monitoring wells
around its ash ponds and on-site landfills to actively monitor groundwater
quality to help ensure the company is being protective of lakes, rivers and
drinking water. In 2020 alone, there have been 1,292 groundwater samples
collected and 54 groundwater reports completed.
Third-party professional engineers and geologists direct the appropriate
placement of monitoring wells for Georgia Power based on site-specific geology.
Independent, third-party professionals perform sampling, with analysis by
accredited, independent laboratories.
Monitoring is being conducted in compliance with federal and state laws and
regulations. The first round of testing was completed with results published in August
2016,
more than 18 months ahead of federal requirements, and the company continues to
post testing results on Georgia Power's website and report them to the EPD.
The dewatering process marks a significant step towards completing the ash pond
closure process and is now underway at six sites: Plants Bowen, McDonough,
McManus, McIntosh, Branch and Yates, with plans approved by the EPD for Plant
Mitchell. Georgia Power's commitment to protecting water quality of surface
waters, such as lakes and rivers, includes comprehensive and customized
dewatering processes during ash pond closures. The company's process treats the
water to help ensure that it meets the requirements of the plant's wastewater
discharge permits approved by the EPD and is protective of applicable water
quality standards.
Biden
Poised to Reset Country’s Course on Climate Change
Within his first 100 days in the White House, Biden says, his Office of Science
Technology and Policy will publish a report identifying the most effective ways
to improve air and water quality for as many people as possible.
He
wants the U.S. to reach net-zero greenhouse gas emissions by 2050 and is calling
for a $1.7 trillion federal investment in clean energy and green jobs over the
next 10 years to achieve that goal.
If
Republicans retain control of the U.S. Senate, Biden won’t get anywhere near
that much funding. But experts say there is bipartisan support for
infrastructure improvements that would bring immediate environmental benefits.
“We
know that to get to 100% clean energy we’re going to need charging stations,
we’re going to have to modernize the grid,” said John Rumpler, a senior attorney
with Environment America.
As
storms grow more severe, runoff from leaky and overburdened sewage systems is
becoming a major problem across the country.
“We
need to invest in repairing our sewage systems and preventing runoff pollution
through green infrastructure that absorbs stormwater on site,” Rumpler said.
And
sewage pipes aren’t the only ones that need to be replaced.
According to the U.S. Environmental Protection Agency, several years after
Michigan declared a state of emergency in Flint due to lead contaminating the
city’s drinking water, there are still millions of lead pipes in America
supplying water to homes and buildings.
“This is the health and safety of our kids and the drinking water coming out of
kitchen sinks,” Rumpler said. “And if we can safeguard our children’s future by
removing these toxic lead pipes, that’s just a terrific thing that Congress and
the Biden administration can do together in the first 100 days.”
Biden has vowed to update the nation’s environmental justice policies and
establish an Environmental and Climate Justice Division within the Justice
Department to bring charges against corporate polluters.
He
claims such prosecutions have fallen to the lowest numbers in decades under the
Trump administration.
Focusing on minorities living near refineries and chemical plants, Biden says
his administration will create a data-crunching tool identifying communities
struggling with the effects of industrial pollution, economic and racial
inequalities, with plans to release annual maps of these places.
“The science is clear that air pollution like particulate matter and sulfur
dioxide lead to increases in mortality and sickness, especially in communities
of color,” said Al Armendariz, the Sierra Club’s senior director of federal
campaigns and a former EPA official.
“Requiring large polluters to use modern pollution control technologies, like
scrubbers to reduce sulfur dioxide pollution and baghouse filters to eliminate
particulate matter emissions, will have immediate positive benefits to public
health,” he added.
In
just four years in office, the Trump administration has eliminated or rolled
back more than 70 environmental regulations and rules.
Though Trump officially withdrew the U.S. from the Paris Climate Accord on
November 4, Biden says that under his watch, as early as February 2021, the U.S.
will rejoin the group of nearly 200 countries in their efforts to reduce
planet-warming emissions.
Environmentalists say Biden’s Environmental Protection Agency should also
implement long-delayed clean air regulations, especially in Texas, home to
Vistra Energy’s Martin Lake Power Plant, the nation’s worst emitter of sulfur
dioxide and mercury pollution, according to the Sierra Club.
Rumpler, the Environment America attorney, said for the health of the nation
Biden must immediately move to reinstate two rules implemented by the EPA under
President Barack Obama, for whom Biden served eight years as vice president.
Within weeks of taking office, Trump announced he planned to rescind or change
the Clean Water Rule of 2015.
“The Clean Water Rule restored protections of the Clean Water Act to thousands
of streams across the country that provide drinking water for more than 117
million Americans,” Rumpler said, “and for wetlands that are vital to filter out
pollution, prevent flooding in communities and provide wildlife habitat.”
Following challenges of the rule that reached the U.S. Supreme Court, the Trump
administration replaced it with one that more narrowly defines waters that fall
under federal jurisdiction.
In
addition to the Clean Water Rule, Rumpler said, Biden should reinstate a 2012
rule mandating new vehicles average 54 miles per gallon by 2025, implemented to
encourage automakers to produce more electric cars.
Under the Trump administration’s revamp, finalized in March, the required
benchmark for automakers is projected to be 40.5 miles per gallon for model year
2030 vehicles.
Environmental groups have widely praised Biden for developing the strongest ever
presidential plan to address climate change.
Armendariz, with the Sierra Club, is confident Biden will deliver on his climate
goals regardless of any roadblocks in Congress, building on the progress he made
alongside Obama.
“He
delivered a mandate for executive action no matter what happens in Congress — or
who is in control. It’s time to advance new policies, not just repeat old ones,”
Armendariz said.
Indian Government Allows Coal Switching Without Environmental Review
In response to lobbying by the Association of Power Producers, India’s Ministry
of Environment and Forests has approved a regulatory change that allows power
plants to switch the source of their coal without requiring an amendment to
their current environmental permit. Before November 11, utilities were required
to seek approval for a change in coal source on the grounds that some coals,
such as those with higher sulfur or ash content or required to be transported
long distances, would increase pollution. Environmental groups have warned the
changes are likely to lead to increased use of coal trucks on roads not designed
for heavy loads and increased pollution from plants that have still not
installed basic pollution control equipment such as flue gas desulfurization
units.
NTPS Ash Pond Spill Results in 4 Unit Closures at Bihars
NTPC shut down four of the seven units of its plant in Bihars Kahalgaon as a
preventive measure, after some problem in the system caused water mixed with ash
to spread in nearby farmland, an official said.
As a result, electricity generation at the super thermal power station plummeted
to around 400 MW from the current 1400-1500 MW, NTPC spokesperson Vishwanath
Chandan said in Patna.
The incident, which occurred on the company's 46th 'Raising Day', triggered
protests from local villagers who put up a road blockade for some time, claiming
that an embankment of an ash pond has breached, and water mixed with ash that
came out of it damaged standing Rabi crops on around 200 acres of land.
The villagers demanded compensation for their crop loss and the NTPC official
said they will get it at the earliest.
Chandan, however, denied that the embankment of an ash pond developed a breach
and said the overflow might have occurred due to some problem in the spillway.
The authorities formed a high-level committee to investigate the cause of the
incident, he said.
The plant was being run at 1400-1500 MW load because of less demand and the
incident has forced the authorities to shut down four of its units leading to
decline in generation to around 400 MW, the spokesperson told PTI.
Two 500 MW units and two 210 MW units of the plant were shut down to prevent the
possibility of any damage to machinery, Chandan said.
The Kahalgaon power plant with an installed capacity of 2,340 MW supplies power
to West Bengal, Bihar, Jharkhand, Odisha and Sikkim.
MARKETS
Vietnamese Utility Signs Deal For Laos Coal Plant
EVN, Vietnam’s government-owned power utility, has signed a memorandum of
understanding with Laos’ Phongsubthavy company to build a 300 MW coal-fired
power plant at Nam Phan. The details of the proposed power purchase agreement
have yet to be resolved but the aim is for the plant to be commissioned in 2025.
In the last few decades, Laos has pursued major energy projects, overwhelmingly
hydro schemes, to earn foreign exchange from export power sales to surrounding
countries such as Thailand, Vietnam, and Myanmar.
Prospects For The Indian Coal Sector in a Post-Covid-19 Era
On March 24, 2020, the Government of India under Prime Minister Nerendra Modi
ordered a nationwide lockdown for 21 days. However, as the pandemic continued,
lockdown was extended in many parts of India. As of late August, a combination
of India’s crowded cities and lockdown fatigue contributed to the country
experiencing the world’s fastest growing number of COVID-19 cases.
From an energy perspective, this means that the coal power sector faces a
contraction in demand for electricity in the medium-term, and competition from
renewable power over the long-term.
Plant load factors (PLF) in the coal fleet fell to 40-50% in the first half of
2020; this was a particularly unwelcome trend for plant operators that have
already been facing falling PLFs since 2009. The sudden drop in output in 2020
from coal power stations led to growing coal stockpiles at the plants. This
temporary surplus in coal supplies had repercussions along the supply chain,
eventually cutting the need for coal imports which halved, and creating a modest
decrease in domestic production. In July 2020, coal-fired power generation
recovered slightly, and although levels are still below those of a year ago,
industrial output, coal rail transport, and even imports are recovering
slightly.
However, the pace of economic recovery worldwide remains unclear, not least in
India where some of the most industrialized states are reimposing lockdowns.
Over the medium- to long-term, the coal power sector faces challenges.
Authorities have set out a program to fit flue gas desulfurization (FGD) and
particulate matter (PM) control to a large proportion of the coal fleet across
the public, state and private sector. But the current problems could see the
2022 deadline for installations being delayed, thus frustrating efforts to
reduce air pollution.
Looking to 2022 and beyond, the Central Electricity Authority (CEA) doesn’t see
a need for new coal capacity beyond the 43 GW that is currently under
construction, that will add to the existing fleet of roughly 200 GW.
Nonetheless, the demand for coal power is unavoidable even with the ambitious
target for 450 GW of renewable power by 2030.
Given India has some of the fastest growing cities in the world, and could
overtake China in terms of population, the demand for reliable electricity that
is available 24/7 is of paramount importance. Per capita electricity consumption
is very low at 1000 kWh (2018), but IEA scenarios expect a doubling or trebling
of per capita consumption by 2040.
Furthermore, as India’s drive for increased renewable capacity continues, coal
plants could take a more flexible role to manage the intermittency from solar
and wind.
Prospects for the Indian coal mining sector appear more optimistic, despite
suffering a small decline in 2020. Coal India Ltd (CIL) produced an estimated
729 Mt in 2019-20, falling short of its target of 750 Mt. But, the Government of
India remains committed to the domestic coal industry, with a strategy to reduce
imports which currently average 200-240 Mt/y (2015-19), opening up possibilities
for domestic coal producers to meet most of the expected increase in demand in
coming years. However, the extra tonnage that needs to be transported from the
mines to the more distant markets that are served by imported coal will test the
rail system which is already operating at its limits. Thus, in the post-COVID
era, the future holds a combination of opportunities and challenges for the
Indian coal power and mining sectors, but the timing and pace of recovery and
progress is highly uncertain as the pandemic continues.
Coal
Remains Top Fuel Source of PH Power Plants in The Philippines
The
Philippines remains heavily reliant on coal, with the fossil fuel powering 54
percent of the total electricity output even during the coronavirus pandemic,
data from the Wholesale Electricity Spot Market (WESM) shows.
According to the WESM manager, the Independent Electricity Market Operator of
the Philippines (Iemop), there were 9,042 megawatts of coal-fired power
generating capacity, accounting for 43 percent of the 20,873 MW registered at
the spot market. Natural gas-fired power plants were a far second with 3,295 MW
or 16 percent of total.
In
terms of electricity that was generated in the 10 months ending in October 2020,
coal represented 35,732 gigawatt-hours or 54 percent of the total that reached
66,494 GWh.
Again, natural gas was second with 16,236 GWh or 24 percent of total generated
electricity.
As
for peak daily demand, WESM records show that this has been receding since
reaching a pandemic-time high of 10,193 MW in September. Peak demand was pegged
at 9,776 MW in October and 8,947 MW in November.
During these months that coincided with the onset of a fully developed La Niña
phenomenon, a series of typhoons lowered temperatures—which means less use of
home appliances for cooling—and even caused power outages.
The
trend in the past three months appears to belie a positive outlook, where
business and consumer confidence is rising and setting up the industry for a
recovery toward pre-pandemic levels.
Earlier this week, John Eric Francia, president and chief executive of AC Energy
Infrastructure Corp., said the Philippine energy sector was expected to regain
its pre-pandemic momentum next year thanks in part to renewable energy, which
allows industry players to resume investments with measured confidence.
Francia was among a panel of industry experts gathered for a webinar hosted by
the European Chamber of Commerce of the Philippines and the Philippine Energy
Independence Council.
He
noted that the Luzon grid alone has seen such a recovery as early as last
September.
Demand is “still a bit unstable but we’re feeling confident it will come back by
next year,” Francia said. “Along with that, there will be, hopefully, a recovery
in both consumer confidence and business confidence, especially with the
announcement that a vaccine has been developed and will be rolled out globally.”
Zimbabwe’s Energy Policy Still Favoring Coal Over Renewables
Private Chinese companies are funding and building most of Zimbabwe's coal power developments.
Despite Zimbabwe’s abundant potential for renewable power, the country is
embarking on a coal-power building spree of as much as 8 gigawatts, much of it
to be built and financed by Chinese companies.
In July, Zimbabwe’s president, Emmerson Mnangagwa, toured eight companies that
own new coal mines, coking coal plants and power generation plants in Hwange, a
district rich in coal and wildlife in the province of Matabeleland North. As the
tour progressed, local firm Western Areas announced plans to build two 300 MW
coal plants, while another, Zimbabwe Gas and Coal, said it would build a 750 MW
plant.
Chinese companies are also building new coal infrastructure in the country.
Zimbabwe Zhongxin Electrical Energy (ZZEE), which is a joint venture with the
Zimbabwe Defense Force, is building a 50 MW power plant with plans to expand
that to 430 MW. Dinson Colliery, the coal-mining subsidiary of steelmaker
Tsingshan Holding Group, is building a US$300 million coking plant. When
Mnangagwa visited, the company said it was also planning a 100 MW coal plant
although when China Dialogue visited in November it said it put the
capacity at 12 MW. Finally, Jinan Corporation is planning a 600 MW plant.
In September, barely two months after Mnangagwa’s visit, both ZZEE and Tsingshan
were fingered by environmental organizations for mining coal in the Hwange
National Park, a national outrage that compelled the government to immediately
stop the mining activities.
Nonetheless, other major coal projects remain in the pipeline, namely the US$3
billion 2,800 MW thermal power plant in Gokwe that RioZim Energy is building
with engineering and financial support from China Gezhouba Group Company, and
PER Lusulu Power’s proposed 2,100 MW power plant in the northwestern district of
Binga.
Tafadzwa Mputa, PER’s chief development officer, said China State Engineering
Construction Corporation is the project’s EPC contractor and debt financer,
bringing in 85% of a total US$2 billion loan facility through a guarantee scheme
set up by China Export & Credit Insurance Corporation (Sinosure) required for
the first of three phases.
Zimbabwe’s new coal mines and power projects are part of a government plan to
achieve a US$12 billion mining economy by 2023 that will make the country
self-reliant in power generation and a net exporter of power regionally.
Zimbabwe’s rush for coal power is hardly surprising given its chronic power
shortages and abundant coal deposits, estimated at around 25 billion tons. The
country has plenty of solar, hydro and geothermal potential. The energy mix is
heavily skewed toward hydro (70%) and coal power (29%), according to the
Zimbabwe Energy Regulatory Authority.
However, ageing coal infrastructure, drought and a lack of investment mean
Zimbabwe only generates 1,096 MW, despite peak demand of 2,200 MW. The deficit
is met by electricity imports from neighboring countries.
Hwange coal-power station generates about 40% of the country’s electricity.
Units 7 & 8 are being expanded by Chinese state company Sinohydro through a
US$1.3 billion loan from the Chinese government. This will increase its
generation capacity from 920 MW to 1,520 MW by 2022.
Renova Moves Forward With Sixth Biomass Power Plant
Japan-based Renova Inc. announced on October 26 it has made a final investment
decision and reached financial close on a 75 megawatt (MW) biomass power plant
under development in Sendai, Miyagi Prefecture, a city approximately 225 miles
northeast of Tokyo.
The
facility, named the Sendai-Gamo Biomass Project, will be fueled by wood pellets
and palm kernel shells. Full construction on the facility is expected to begin
by February 2021, with operations expected to begin in November 2023.
Renova said it is working to develop the project with four cosponsors, including
Sumitomo Forestry Co. Ltd, United Purpose Management Inc., Mizuho Leasing Co.
Ltd, and Daiwa Energy and Infrastructure Co. Ltd.
The Sendai-Gamo Biomass Project is one of several biomass power plants under
development by Renova in Japan. The company’s 20.5 MW Akita Biomass project
began operations in mid-2016, while its 75 MW Kanda Biomass, 75 MW Tokushima-Tsuda
Biomass, 75 MW Omaezakikou Biomass and 75 MW Ishinomaki Hibarino Biomass
projects are currently under development.
Coal-fired Generation Could Increase 20% 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%, recovering most of the ground lost in
2020, while gas-fired generation drops by 15%. After accounting for other coal
demand sectors and inventory changes, miners are expected to enjoy a 19%
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% 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.
China Could Keep
Building New Coal-Fired Power Plants For at Least the Next Five Years
The recent estimate by the International Energy Agency (IEA), based on stated
policies, follows a barrage of reports from climate groups on the plans for new
plants.
The projection from the IEA’s 461-page annual World Energy Outlook report
released on October 13 may lend credence to arguments that China has been adding
unneeded coal-power capacity to spur the economy and speed recovery from the
pandemic slump.
The coal projects have been a key issue for the new five- year plan under
consideration at the party plenum this week.
Zou Ji, head of Energy Foundation China, a grantmaking charitable organization
involved in five-year planning research, argued that China should stop building
and financing all new coal plants, affecting 300 gigawatts (GW) of capacity, Reuters reported
this week. Unless stated policies change, more coal plants will
keep being built, the IEA said.
“China continues to build an average of 17 GW of new coal- fired plant(s) per
year through to 2025, with many new projects in progress despite a current
excess of power capacity, weakened electricity demand outlook and recognition of
the imperative to reduce coal use to address climate change,” the report said.
The pace of additions is expected to slow after 2025, but environmental
advocates have warned that the new plants could keep operating for up to 40
years.
IEA said China’s coal-fired capacity would rise 7.7 percent between 2019 and
2025 while generation would grow 6.1 percent under the forecast’s stated
policies scenario.
Capacity would expand by a milder 1.4 percent between 2025 and 2030, although
actual generation is expected to decline by 0.5 percent, the IEA said.
The stated policy projections contrast sharply with those under the agency’s
“sustainable development scenario,” which could enable China to meet targets of
the Paris Agreement on climate change.
To get on the sustainable path, China would have to reduce coal-fired capacity
by only about 1 percent from 2019 until 2025, but the cut would climb to 10
percent in the five-year period to 2030.
From 2019 to 2030, coal-fired generation would have to fall by over 33 percent
to meet the sustainable goal.
The IEA estimates may bolster the criticism of China’s current coal plans, which
promote employment and economic growth despite the low utilization and financial
losses of existing plants.
In July, the Center for Global Sustainability at the University of Maryland
School of Public Policy found that 57 coal plant projects with 76 GW of capacity
were moving toward completion in the first five months of the year.
An additional 53 GW of new coal-fired capacity had recently received permits,
the center said.
The projects are largely the result of a central government decision in 2014 to
transfer approval authority for new power plants to provincial and local levels
as a way to cut bureaucratic red tape.
The shift led to a flood of new projects and a rise in under-utilization of
unneeded plants.
“This is all despite significant overcapacity in the sector, with more than half
of coal-power firms already loss- making and with typical plants running at less
than 50 percent of their capacity,” the environmental group Carbon Brief said in
March.
At the start of 2020, China had 180 GW of new coal-fired capacity in the
planning stage, the IEA said in an earlier report.
“The case for building this planned new coal capacity … needs to be carefully
weighed against the implications for local air pollution and global climate
goals,” the agency said.
The IEA forecast suggests that China’s stimulus policies may work against Xi’s
climate pledges for the next five years unless the government makes major
changes.
Last week, a group of China’s leading climate experts issued a report urging
limits on coal power during the coming plan period.
“China should strictly control coal consumption and the expansion of coal-fired
power capacity in the next five years, aiming to cap carbon emission from coal
sectors by 2025 and even realize negative growth,” said He Jiankun, deputy
director of the National Expert Committee on Climate Change, Reuters reported.
“The development of coal power will need (to) be restricted,” said special
climate change adviser Xie Zhenhua in a commentary for the official English
language China Daily.
Xie said no coal-related projects will be listed in this year’s Green Bond
Endorsed Project Catalogue, barring access to financing from the international
Climate Bonds Initiative.
But Xie stopped short of saying that no new coal-fired power plants would be
built.
“Adding large amounts of renewable capacity is probably feasible, (but) phasing
out the fossil fuels is harder, of course,” said Michal Meidan, director of the
China Energy Program at the Oxford Institute for Energy Studies (OIES).
The task will be tougher because 40 GW of planned new coal-fired projects this
year have already been approved, “many of them driven by local governments
looking to boost job creation and economic activity,” Meidan said.
In the latest International Monetary Fund forecast, China’s economy is projected
to grow 1.9 percent this year, up from a previous estimate of 1 percent in June.
If recovery continues without another wave of COVID-19 cases, growth could reach
8.2 percent in 2021, the IMF said in its World Economic Outlook.
But unless major policy changes take effect quickly, China’s recovery will be
fueled largely by coal.
“There are few large-scale ‘green’ projects, and since China’s energy demand is
still expected to continue growing, with coal still seen as the most reliable
baseload supply source for power currently, local officials continue to pursue
these projects,” Meidan said.
Earlier this week, OIES released an analysis of China’s recovery plans, based on
official statements, slogans and government goals in the first nine months of
this year.
“Environmental protection and climate change mitigation are not among these
priorities,” said the paper by Philip Andrews-Speed of the National University
of Singapore’s Energy Studies Institute, and Sufang Zhang and Chao Wang at
the North China Electric Power University’s School of Economic Management.
One problem cited by the experts is the need to maintain grid stability on
ultra-high voltage (UHV) transmission lines that were built to bring renewable
energy from remote areas to demand centers.
“As a result, more thermal capacity will have to be built to support existing
and planned UHV lines. Yet there is already an overcapacity of thermal power,”
they said.
Under the IEA’s stated policy scenario, the share of coal in China’s total
primary energy demand would decline from 61 percent in 2019 to 52 percent in
2030. In the tougher sustainable development scenario, coal’s share in 2030
would have to fall to 43 percent.
According to the IEA, China is the only major economy expected to see higher
electricity demand this year than in 2019. China’s net growth of new coal-fired
plants is also an exception to trends in the rest of the world.
“In advanced economies, the use of coal-fired power is on track to fall by an
unprecedented 20 percent in 2020,” the IEA said.
The effects of COVID-19, the falling costs of gas and renewables, and
environmental pressures have all played a part in the reduced global role for
coal. Worldwide demand for electricity from all sources is expected to drop by 2
percent this year before increasing by nearly 3 percent in 2021.
Competitive fuels and environmental pressures will continue to cut into
coal-fired generation in advanced economies under the stated policies scenario,
the IEA said.
In the United States, for example, the lowest natural gas prices in decades have
made it “extremely difficult” to invest in upgrading coal plants. Coal-fired
capacity is projected to fall 60 percent from 2019 levels in the next decade,
plunging 80 percent by 2040, the report said.
The low profitability of China’s coal plants is likely to worsen if new capacity
is added, turning projects into stranded assets, unable to justify investment or
pay for themselves.
The result may be that fewer of the approved projects will actually come on
line, Meidan said.
But China’s continuing motivations for coal consumption may make future
reductions less certain, despite profitability problems and Xi’s climate goals.
After years of rising reliance on imported oil, China’s government has grown
sensitive to energy security risks.
“Concerns about energy security lend further support to domestic energy sources,
so coal remains the clear go-to,” Meidan said.
On the opening day of the virtual e-LPG Week, Dr. Fatih
Birol, Executive Director of the International Energy Agency (IEA),
addressed attendees about the role of energy in the global recovery from the
COVID-19 pandemic. The impact of the pandemic has been huge, with declines in
energy usage of around 5% and some 20% reduction in investment, a situation not
seen since World War II. Corresponding expected drops in global emissions of
around 7% are the biggest in history but, as Dr. Birol reported, this is not
necessarily good news.
"This decline (in emissions) is not happening because of the right energy
policies or new technologies," stated Dr. Birol, "this is happening because of
the economic meltdown around the world. Low economic growth is not a low
emission strategy and if governments do not take the right measures to push
emissions down, as the global economy recovers, emissions will return to
previous levels," added Dr. Birol.
Dr. Birol went on to say, "We are very well aware of the critical role of LPG in
industry, in transportation and most importantly in households across the world,
especially in the emerging world. To date about 2.6 billion people, 5 times the
population of Europe, have no access to clean
cooking. They are using coal, kerosene, agricultural waste, animal waste in
certain cases, for cooking. And this is one of the top three reasons, according
to a study we carried out with the World Health Organization (WHO), for
premature deaths around the world because of the respiratory diseases that it
causes and here, of course, LPG can be a very important option to address this
problem and we have seen several good examples."
The WHO estimates that nearly four million people die prematurely each year from
illnesses attributed to polluted household air. LPG is an important and
immediate solution to this problem, which not only improves air quality but also
lowers global carbon emissions, stops increasing deforestation and improves the
lives of women and children.
One example of policy that has gained global recognition for helping poorer
families access green cooking fuel, is that of the Indian government with its
Ujjwala program. In his address to e-LPG Week, Mr. Shikrant Madhav Vaidya,
Chairman of Indian Oil Corporation Limited (IOC), spoke about the success of
this program and the importance of e-LPG Week in forming policies and strategy
at both global and local level. He said, "During the pandemic, the scheme has
been invaluable in giving relief to vulnerable sections of society through
national lockdown."
The Indian government gave three free refills of LPG cylinders between the
months of April and June to those below the poverty line. Mr. Vaidya went on to
say, "LPG has become an indispensable part of the Indian kitchen, with a surge
in demand over lockdown of around 17%."
While offering a life-changing solution to rural communities and a way of
lowering global emissions, Dr. Birol continued to explain how the LPG community
can do more in terms of increasing the availability of renewable LPG. He praised
several refineries for their efforts in processing renewable feedstock into
various oil products, including bioLPG and concluded that, "bioLPG is still in
modest quantities but it can, and promises to, play a greater role in years to
come."
Mr. Vaidaya concluded by summarizing the importance of new energy. While
acknowledging the roles of hydrogen and CNG, he said, "LPG plays a vital role in
the continuing use of clean energy and ensuring inclusive growth and enhanced
sustainability."
INDUSTRY NEWS
B&W Thermal Awarded $20 Million Installation Contract to Upgrade and Extend
Lifespan of Power Plant
Babcock & Wilcox announced that its B&W Thermal segment will install replacement
boiler pressure parts for a power plant in North America. The contract, valued
at more than $20 million, was awarded to B&W’s subsidiary, Babcock & Wilcox
Construction Co., LLC (BWCC).
Under this contract, BWCC will install new superheater sections and furnace
panels, some of which were designed and supplied by B&W under a previous
contract, to help extend the life of the plant’s operations.
“B&W Thermal has unmatched experience with installing equipment to maintain and
extend the operable lifespan of boilers and other equipment for the North
American power fleet,” said B&W Chief Operating Officer Jimmy Morgan. “Whether
installing or servicing B&W’s or our competitors’ equipment, we have the
resources and knowledge to respond to customers’ needs and deliver reliable
solutions.”
“As many of our competitors have stepped back from providing cost-effective
plant maintenance and upgrades, B&W Thermal has stepped up to continue supplying
these critically important services. We are seeing increasing demand from our
customers as they plan long-term strategies in upgrading or converting
technologies,” Morgan said.
Installation is scheduled to begin in February 2021, with completion anticipated
later in the spring.
International technology group ANDRITZ has received an order from Tata Projects
Limited, India, to supply the technology and critical components for a seawater
flue gas desulphurization plant (FGD) with wet stack and integrated seawater
treatment for the Mundra thermal power station. The power station—with an output
of 5 x 830 MW—is operated by Coastal Gujarat Power Limited, a subsidiary of Tata
Power, and will be the world’s largest with seawater FGD technology when it is
completed in the third quarter of 2023.
The
ANDRITZ scope of supply comprises the complete basic engineering and the
detailed engineering for the absorber internals, as well as other important
deliveries.
The
ANDRITZ FGD technology uses the cooling water from the power station (open
continuous-flow cooling with seawater) to remove all acid components, enabling
recovery rates of more than 95%. Due to integrated oxidation of the seawater, it
is returned to the open cooling water circuit again after being fully treated.
In order to keep energy input as low as possible, a high-performance, concrete
packing scrubber is used. Special membrane distributors are applied for
oxidation of the seawater, optimizing the plant’s economic efficiency and
ensuring that the operating costs are kept low.
BSE is a wholly-owned subsidiary of the Kingdom’s largest conglomerate, Royal
Group of Companies Ltd, while SET is a wholly-owned subsidiary of Beijing-based
state-owned enterprise Sinosteel Corp.
As outlined in the EPC contract, Yicai Global said, once it secures
payment, SET will present the design and will procure and supply the equipment
and materials, as well as provide construction, installation and commissioning
services.
Citing a SET statement, the Shanghai-based financial news portal said the total
contract value is to the tune of about $1.1 billion. The contract covers the
construction of two new 350 MW engine units and ancillary generation and
transmission facilities, as well as a dedicated coal terminal, it said.
Construction of the first unit is scheduled to be completed within 36 months of
breaking ground, with the second unit slated to be finished 12 months later, it
added.
Koh Kong deputy provincial governor Sok Sothy told The Post on Sunday
that the provincial administration has yet to receive a construction schedule
for the project and confirmed that construction activity had not begun.
According to a sub-decree issued on August 6, the government granted 168-ha in
Botum Sakor National Park in Koh Kong to the Royal Group to build the power
station.
The project will require $1.34 billion in capital investment and will be online
in 2023 or 2024. Of that, 30 percent will come from direct capital and 70
percent will be from bank loans, the sub-decree said. The project will be
developed under a 35-year build, own, operate (BOO) model.
It said the Ministry of Environment has to work in collaboration with the
Ministry of Economy and Finance and others to prepare the deal.
Victor Jona, director-general of the Ministry of Mines and Energy’s General
Department of Energy, in August said the government needs to diversify energy
production to include other sources and ensure stable electricity supply in
Cambodia. He said that without exception, the government assumes the ultimate
responsibility in reviewing the socio-environmental impact of every development
project in the power sector.
“All in all, we need to expand our energy portfolio to include a plethora of
sources, inter alia, hydropower, coal and solar to ensure the supply to
consumers, be they citizens, industries, cottage industries or service
providers,” Jona said.
According to Electricite du Cambodge, peak electricity demand in the country is
expected to increase to 2,300 MW this year and hit 2,500 MW by next year.
Cambodia consumed a total of 2,650 MW of electricity in 2018, an increase of
about 15 percent compared to 2017, according to official statistics from the
energy ministry.
The Kingdom’s electricity demands are currently covered by hydroelectricity and
coal power, accounting for around 48 percent and 47 percent of generation,
respectively.
Jona told The Post early this month that electricity demand in the
Kingdom retreated between 10 and 12 percent this year due to Covid-19-induced
economic shocks in key sectors—above all in garment manufacturing.
On the Shenzhen Stock Exchange, SET’s share price fell 0.04 yuan (0.61 US cents)
or 0.94 per cent to close at 4.22 yuan last week for a market capitalization of
5.30 billion yuan, with 17.08 million shares traded.
Enviva Commemorates First Shipment of Sustainable Biomass to Japan
Enviva Partners, LP (“Enviva”), a leading renewable energy company specializing
in sustainable wood bioenergy announced that its first shipment of sustainable
wood pellets is on its way from Port Panama City in Florida to Japan’s Iwakuni
Port.
“Worldwide demand for renewable solutions that can help mitigate climate change
right now continues to grow immensely,” said John Keppler, Enviva Chairman and
Chief Executive Officer. “We are very proud of our operations in the Southeast
and our export terminals that enable us to safely, stably, and reliably deliver
a product that displaces coal and helps countries like Japan meet their climate
change goals in the most cost-efficient way while ensuring reliable and
dispatchable energy generation.”
“We
are honored by the trust and responsibility our Japanese customers have placed
in us to be the core supplier of renewable fuels to such an important project
mitigating climate change and are privileged to be a part of their success,”
Keppler added.
Enviva’s first shipment carried approximately 28,000 metric tons of wood pellets
made from low-value wood sourced in the U.S. Southeast. Sustainable bioenergy
provides a viable solution to reducing greenhouse gas emissions that is
available today and will enable Japan to meet its recently announced goal of
being carbon-neutral by 2050. By using sustainable wood pellets instead of coal,
heat and power producers in Japan will be able to reduce carbon emissions by
more than 85% on a lifecycle basis, providing a significant reduction in
emissions for the world's fifth-largest greenhouse gas emitter while also
providing grid stability.
“The
Port of Panama City and Enviva’s first shipment of sustainable biomass to Japan
is a major milestone for Florida’s Second Congressional District,” said Florida
Congressman Neal Dunn, M.D. “This partnership between Enviva and the Port of
Panama City will not only boost the local and state economy; it will provide
alternatives to conventional power sources internationally.”
“The
Port of Panama City is proud to be a part of Enviva’s sustainable supply chain,
which takes low-value wood from private landowners in Florida and ships it to
customers around the world who use it to generate clean, renewable energy for
tens of thousands of homes and businesses,” said Wayne Stubbs, executive
director of the port.
This
week’s shipment marks the first of many to a global economic powerhouse where
demand for a long-term supply of sustainable biomass continues to grow as the
economy moves away from fossil fuels. Japan’s feed-in tariffs (FiTs) for
renewable energy, along with the government’s commitment to shut down or
decarbonize 100 coal plants, have enabled more than 3 million tons of long-term
demand for wood pellets to be contracted by Enviva. Most of such agreements with
the company’s Japanese customers extend to 2040 and beyond.
Sempra Donates $2M to Salk Institute For R&D Efforts on Plant-Based
Carbon-Capture
West coast utility owner Sempra Energy is partnering with a well-known research
firm that will study and advance technologies for plant-based carbon capture and
sequestration.
Sempra is donating $2 million to the Salk Institute to help fund the five-year
project. The owner of San Diego Gas & Electric, Southern California Gas and
Oncor Electric, is the lead sponsor for the Salk project.
The institute’s Harnessing Plants Initiative aims to fight climate change by
optimizing a plant’s natural ability to capture and store carbon and adapt to
diverse climate conditions. Salk researchers will develop plants which can draw
down significant amounts of the excess carbon in our atmosphere while also
providing more food, fuel and fiber for a growing population.
“At Sempra Energy, we support partnerships designed to produce sustainable and
responsible change, and we believe the Salk Institute is an ideal partner to
make true progress in the fight against climate change,” said Kevin Sagara,
group president of Sempra Energy and advisory committee member of HPI. “This
project has the potential to help remove significant amounts of carbon from
entering our atmosphere and aligns with Sempra Energy’s portfolio to advance the
global energy transition to lower-carbon energy sources.”
With Sempra Energy’s funding, over the next five years Salk scientists will work
to develop a drought-tolerant, carbon-sequestering grass (sorghum) variety
designed to grow on land in Southern California and store carbon in the soil for
use with grain production, grazing or bio-energy feed stocks.
“There is incredible urgency to address our changing climate,” said Salk
Professor Wolfgang Busch, co-director of the Institute’s Harnessing Plants
Initiative (HPI). “As the world’s population increases to 10 billion or more,
global warming is going to put incredible pressure on our ability to meet
humanity’s needs for food, fuel and fiber. Sempra’s investment in research to
develop solutions that remove excess carbon from the atmosphere is an investment
in our shared future.”
HPI aims to develop crop plants that have significant global acreages to store
long-lasting carbon in the soil. Crop plants that are engineered to store more
carbon in the soil for longer can lead to a potentially enormous reduction in
atmospheric carbon dioxide (CO2).
The six crops that HPI is developing (including sorghum) can have a global
impact on carbon levels. HPI estimates that if, worldwide, 70% of the target
crops are converted into carbon-sequestration-enhanced crop plants, 1.5 to 6
gigatons of CO2 can be sequestered per year, the equivalent of up to
as much as one-third of human-caused CO2 emissions that accumulate in
the atmosphere each year.
Like many utility leaders, Sempra Energy has set a goal of reaching zero-carbon
electricity by 2045 and is headquartered in California where a statewide goal
has been passed by political and regulatory leaders.
SaskPower Names Burns & McDonnell as EPC Contractor for Great Plains Power
Station
SaskPower has selected Burns & McDonnell as the engineer-procure-construct (EPC)
contractor for the new Great Plains Power Station. The new power facility will
utilize highly efficient combined-cycle technology and clean-burning natural gas
to provide up to 350 megawatts (MW) of baseload capacity.
The new power facility will be located in an industrial area near Moose Jaw, a
city of about 34,000 in south-central Saskatchewan. SaskPower is a provincial
Crown Corporation and Saskatchewan’s leading energy supplier. Engineering will
begin immediately, and construction is expected to begin in early 2021. The
Great Plains Power Station is expected to begin generating power in 2024.
The Great Plains facility will be similar to SaskPower’s Chinook Power Station,
a 353-MW combined-cycle power facility located near Swift Current. The Chinook
facility began commercial operations in late 2019. Burns & McDonnell served as
EPC contractor for the Chinook project.
GE Secures HA Gas Turbine Order for Naepo District Heating Plant in South Korea
GE announced it has secured an order to supply power generation equipment for
Naepo Green Energy Co., Ltd.’s (Naepo) new district heating plant located in the
center of Naepo City, South Korea. GE will deploy one of its highly efficient
and advanced 60 Hertz gas turbine, the 7HA.02. with its matching H65 generator.
The order also includes one STF-D650 Steam Turbine, one H35 generator, one Heat
Recovery Steam Generator (HRSG), one GE condenser and equipment maintenance
services for 19 years. The plant will have the capacity to generate
approximately 500 megawatts (MW) of power, the equivalent output needed to power
approximately 125,000 South Korean homes. Also, it will provide steam for
district heating for more than 100,000 citizens of Naepo City and eliminate
their need to purchase and maintain individual hot water boilers, providing
important support for the city’s colder winter months.
Naepo District Heating Plant, which will be built by Lotte Engineering &
Construction Co., Ltd. (Lotte E&C), one of South Korea’s top EPC companies, will
benefit from the HA technology capable of reaching close to 64% efficiency in
combined cycle, and more than 91% efficiency in district heating mode. This
process, by capturing and reusing wasted heat or steam that would otherwise be
released into the environment and go unutilized, will generate more energy per
unit of fuel with lower carbon emissions.
Guangdong Energy Group Awards Contract to GE and Harbin Electric Corporation for
HA Technology to Boost China’s Greater Bay Area’s Transition from Coal to-Gas
Power
GE announced that Chinese state-owned power utility Guangdong Energy Group Co.,
Ltd ordered three 9HA.02 gas turbines for
the
Dongguan Ningzhou combined cycle power plant in Guangdong province, in the
Greater Bay Area. Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is an
agglomeration of cities put forward by China to strengthen international
cooperation and promote lower-carbon, inclusive, coordinated and sustainable
development. The plant will add 2.4 GW of power to the Guangdong province in
alignment with national goals to transition from coal to natural gas and it will
become one of the largest gas power plants in China’s mainland. GE’s local
partner on this project Harbin Electric will provide steam turbine, generator
and balance-of-plant equipment for
the
Ningzhou power plant and it is expected to be operational in 2022.
Jacobs Awarded Pulau Indah Power Plant in Malaysia
Jacobs was appointed by Pulau Indah Power Plant Sdn Bhd (PIPP) to deliver
owner's engineer services for the development of a 1,200 megawatt (MW) Combined
Cycle Power Plant (CCPP) situated on Pulau Indah in Klang, Malaysia.
The
award follows a recent announcement confirming Jacobs as the owner's engineer
for a 100 megawatt alternative current solar plant in Pekan, Malaysia. The two
projects put Jacobs and its clients at the forefront of new generation capacity
in South-East Asia as the region moves towards a low-carbon future.
The
project will deliver a 1,200 MW combined cycle gas turbine plant to improve
baseload supply for the region. When complete, it will provide high efficiency,
low carbon power to the central region of peninsular Malaysia, including in
Klang, Kuala Langat and Sepang districts where there is high demand for
electricity. The new plant is expected to help attract new industrial
development investments, stimulate economic activity and create new employment
opportunities in the region.
As
owner's engineer, Jacobs will provide technical advisory services through to
financial close, design review, construction monitoring, project management,
attendance at factory testing and warranty support. Commercial operation is
currently slated for January 2024. Tenaga Nasional Berhad (TNB) will purchase
the power generated from the new power plant through a Power Purchase Agreement
(PPA).
"The
power plant will use HA turbine technology, the world's most innovative turbine
with advanced materials, cooling, aerodynamics, combustion and digital
capability," said PIPP Managing Director Datuk Seri Gan Seong Liam. "It is a
clean energy alternative, that emits lower levels of emissions and produces less
greenhouse gases. We look forward to the successful completion of this
ground-breaking project leveraging off Jacobs power experience in Malaysia and
across the South East Asia region."
PIPP
is a consortium of three companies: Maxim Global Berhad (formerly known as
Tadmax Resources Berhad), Worldwide Holdings Berhad and Korea Electric Power
Corporation.
Eskom
Directed To Clean Up Three Polluting Coal Plants
The
South African Department of Environment Forestry and Fisheries has revealed that
in May, Eskom was ordered to rectify breaches of air pollution limits and water
pollution standards at its 1600 MW Camden and 3654 MW Tutuka power stations. The
agency also issued an enforcement action over excessive particulate matter
emissions from the 3,708 MW Lethabo plant and expressed concern that its use of
unlined coal ash and wastewater dams was contributing to groundwater pollution.
The department is investigating excessive air pollution from the Duvha power
station and is demanding a specific timetable for the Kendal plant to meet
emission limits and rectify poor maintenance of pollution abatement equipment.
RWE Plant Converts Fifth Unit to Biomass
The Port of Rotterdam, on October 28, announced that RWE’s Amercentrale power
plant will soon be fueled with 80 percent biomass. The facility is working to
convert the fifth of its six turbines from firing coal to firing wood pellets.
Upgrades being made at the facility include a closed conveyor system to
transport the pellets from barges to the turbines and the installation of a
large-scale fan. The company said the adaptations are being made while the rest
of the plant remains fully operational.
Wood pellets being used to fuel the plant are sourced from responsible forestry
operations in the Baltic states and North America, according to information
released by the Port of Rotterdam. Starting next year, the facility is expected
to purchase 1.5 million metric tons of pellets annually.
According to the port, most of the storage and handling of pellets for the
Amercentrale facility is handled by ZHD Stevedores. Dico Regoord, commercial
manager at ZHD, said approximately 75 percent of the pellets delivered to the
plant are transferred to inland vessels via ship-to-ship handling at various
buoys in Rotterdam.
The power station’s sixth turbine will continue to fire coal and serve as a
back-up source of power in the event one of the biomass-fired turbines is down.
According to RWE, the Amercentrale facility was commissioned in 1993. It is
located in Geertruidenberg, the Netherlands, near the Port of Rotterdam. The
facility has a 600 megawatt (MW) electrical capacity and can produce 350 MW of
district heat.
Hamon Selected to Take Part in a Renewable Biomass Power Plant in Japan With an
8 Modules ACC
By providing an 8 modules air cooled condenser, Hamon will contribute to the
Omaezakikou biomass power plant in Japan. 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.
Developed by Omaezakikou Biomass Energy G.K, the project will be carried out by
a joint venture between Toyo Engineering Corporation and Nippon Steel
Engineering Co., Ltd.
Construction is scheduled to commence in April of 2021, with commissioning
planned for July 2023.
Babcock & Wilcox (B&W) announced that its B&W Thermal segment will supply
equipment to upgrade burners and provide other boiler related equipment for a
power plant in North America to allow it to utilize cleaner-burning natural gas
as its main fuel. The contract is valued at approximately $3 million.
B&W will supply natural gas valve trains and other burner related components for
the plant’s boiler. Material delivery is scheduled for early 2021.
Camfil PowerEye Guides Operators on Inlet Filter Operation
Camfil Power Systems introduced PowerEye™ —claimed to be the industry’s first
predictive analytics engine that quantifies the impact of ambient conditions on
the performance of air inlet filtration and combustion turbines. These insights
drive higher power output and reduce operational expenses.
PowerEye predictive analytics engine provides:
The PowerEye engine provides specialized analysis because it pulls from Camfil’s
proprietary filtration knowledge base. With years of field-testing experience on
a variety of filter types, Camfil has developed algorithms to predict how
different filter and atmospheric conditions will react and affect the
performance of gas turbines.
Armed with intelligence from PowerEye, operators can conduct predictive
maintenance and address potential issues before they become costly problems
resulting in downtime and equipment failure.
PowerEye data is delivered through an annual service subscription that is backed
by an experienced team of Camfil filtration specialists. These experts provide
actionable reports, valuable analysis and critical insights into the status of
filters and the performance of gas turbines. Three different subscription levels
are available—Lite, Pro and Max—to best accommodate the needs of the operation
and budget.
“The information that PowerEye delivers lets power plant operators maintain
better control of their facilities and helps them make strategic decisions to
improve power output across the fleet,” said Marc Van den Eynde, Vice President
Global Sales and Marketing, Camfil Power Systems.
PowerEye pulls data from three main sources—Camfil’s proprietary PowerEye Air
Monitoring Station telemetry device (installed at each facility), the facility
site historian and online weather services. Data is securely transferred back to
the central PowerEye server for analysis, then run through the PowerEye
predictive analytics engine. The PowerEye engine calculates the impact of
ambient conditions on the performance of air inlet filtration and combustion
turbines and gives actionable maintenance recommendations to increase plant
profitability.
Up to 25 users per site can access PowerEye data and predictions via a web-based
dashboard. This user-friendly dashboard makes it easy to monitor multiple assets
across fleets to spot trends and quickly identify underperforming assets,
enabling operators to take appropriate action.
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.”
Mitsui E&S Restarts Construction of Indonesian Coal-fired Power Plant
Mitsui E&S Holdings has resumed construction of a coal-fired power plant in
Indonesia that was halted earlier this year in response to the global spread of
the coronavirus.
The Japanese engineering company was supposed to finish building two
1,000-megawatt facilities by November. Though Mitsui E&S decided to resume
construction in September, it is expected to miss this deadline.
Mitsui E&S has already lost 150 billion yen ($1.45 billion) on the project since
signing the deal in 2012, following setbacks caused by a defective pipe
discovered in 2018. Further losses are likely due to the pandemic-induced delay,
but the company thinks the 74.6 billion yen remaining in reserves is more than
enough to offset the blow.
"We are still determining the exact monetary impact, but it can be covered by
reserves we have already put aside," CEO Ryoichi Oka said in a phone conference
on November 9. "We have not experienced a shortage in the necessary materials or
workers" for the Indonesian plant.
Mitsui E&S logged a 9% decrease in group revenue on the year to 324.2 billion
yen for the six months through September, partly from its sale of Showa Aircraft
Industry. With its reserves cushioning the blow from the Indonesian coal plant,
the company's net loss for the period totaled 4 billion yen, an improvement from
its 66.4 billion yen loss a year earlier.
For the full year, Mitsui E&S has maintained its forecast of a 20% drop in
revenue to 630 billion yen. It expects to break even on a net basis, as opposed
to an 86.2 billion yen loss the year before.
Sempra Energy and Salk Institute Announce Project to Advance Plant-based Carbon
Capture and Storage Research
Sempra Energy and the Salk Institute announced a new project to advance
plant-based carbon capture and sequestration research, education and
implementation to help address the climate crisis. Sempra Energy is donating $2
million to the Salk Institute to help fund the five-year project.
"There is incredible urgency to address our changing climate," said Salk
Professor Wolfgang Busch, co-director of the Institute's Harnessing Plants
Initiative (HPI). "As the world's population increases to 10 billion or more,
global warming is going to put incredible pressure on our ability to meet
humanity's needs for food, fuel and fiber. Sempra's investment in research to
develop solutions that remove excess carbon from the atmosphere is an investment
in our shared future."
"At Sempra Energy, we support partnerships designed to produce sustainable and
responsible change, and we believe the Salk Institute is an ideal partner to
make true progress in the fight against climate change," said Kevin Sagara,
group president of Sempra Energy and advisory committee member of HPI. "This
project has the potential to help remove significant amounts of carbon from
entering our atmosphere and aligns with Sempra Energy's portfolio to advance the
global energy transition to lower-carbon energy sources."
Sempra Energy will be the lead sponsor of the Salk Institute's "Sequestering
Carbon Through Climate Adapted Sorghum" project, part of the Institute's
Harnessing Plants Initiative. HPI is an innovative, scalable and bold approach
to fight climate change by optimizing a plant's natural ability to capture and
store carbon and adapt to diverse climate conditions. Salk researchers aim to
develop these Salk Ideal Plants™ to mitigate the disastrous effects of climate
change by drawing down significant amounts of the excess carbon in our
atmosphere while also providing more food, fuel and fiber for a growing
population. With Sempra Energy's funding, over the next five years Salk
scientists will work to develop a drought-tolerant, carbon-sequestering grass
(sorghum) variety designed to grow on land in Southern California and store
carbon in the soil for use with grain production, grazing or bio-energy feed
stocks.
HPI aims to develop crop plants that have significant global acreages to store
long-lasting carbon in the soil. Crop plants that are engineered to store more
carbon in the soil for longer can lead to a potentially enormous reduction in
atmospheric carbon dioxide (CO2). The six crops that HPI is
developing (including sorghum) can have a global impact on carbon levels. HPI
estimates that if, worldwide, 70% of the target crops are converted into
carbon-sequestration-enhanced crop plants, 1.5 to 6 gigatons of CO2
can be sequestered per year, the equivalent of up to as much as one-third of
human-caused CO2 emissions that accumulate in the atmosphere each
year.
Salk Professor Joanne Chory, co-director of the Harnessing Plants Initiative,
said, "Our plant-based approach to climate change offers a win-win-win for
improving soil health, feeding the world's burgeoning population and
sequestering carbon affordably with the potential for global scale. Salk's plant
scientists are very excited at how much Sempra Energy's generosity will help
move our critical research forward."
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 Corporation, 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% to $8.2 million from $6.5 million in Q3
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 Q4 2020, however, in Q3 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 Q3 2020 was 72.4% of revenues compared to 44.8% of revenues in Q3
2019, primarily reflecting the impact of the settlement on APC costs of sales.
Excluding the settlement, consolidated gross margin for Q3 2020 was 40.7%.
SG&A
expenses declined by 16.7% to $3.2 million from $3.8 million in Q3 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
·
Revenues of $132.5 million
·
Net income of $34.7 million, a $91.7 million improvement
·
Adjusted EBITDA of $25.6 million with adjusted EBITDA margin of 19.3%
·
Diluted EPS improved to $0.69, compared to $(1.39)
·
Quarterly bookings increased 106% compared to third quarter 2019, and increased
111% sequentially
“Our third 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% compared to
the third 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."
Babcock & Wilcox Environmental segment revenues
were $25.3 million in the third quarter of 2020 compared to $45.0 million in the
third quarter of 2019. The decrease was primarily due to the completion of large
construction projects in the prior year and the postponement of new projects by
customers as a result of COVID-19. Adjusted EBITDA was $1.1 million compared to
$1.8 million in the same period last year, driven primarily by the impact of
COVID-19 and lower volume. Adjusted gross profit declined to $5.9 million in the
third quarter of 2020, compared to $9.0 million in the prior-year period,
primarily due to the decrease in revenue partially offset by favorable product
mix. On September 30, 2020, the segment had two remaining significant loss
contracts, previously reported as part of B&W SPIG's U.S. entity. The first was
approximately 100% complete at the end of the third quarter of 2020 with only
performance testing remaining, which is expected to be completed in the fourth
quarter of 2020. The second was approximately 97% complete at the end of the
third quarter of 2020 and is expected to be completed in the fourth quarter of
2020.
Mitsubishi Power
Receives Follow-up Order from Serbia for Two Sets of World's Largest Flue Gas
Desulfurization Systems
Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI) Group, has
received an order for two sets of one of the world's largest flue gas
desulfurization (FGD) systems for the Nikola Tesla B coal-fired power plant in
Serbia. This is the second order from Serbia for FGD systems, the first having
been an order for two sets for the Nikola Tesla A coal-fired power plant
received in September 2017, and the third such order in the Western Balkans,
including an order received in July 2016 for the Ugljevik Power Plant in Bosnia
and Herzegovina.
The newly ordered FGD systems each have a flue gas desulfurization capacity of
670 megawatts (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 1,340 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%,
achieving a level of 130mg/Nm3 required to comply with the European
Industrial Emissions Directive (IED) and the new BREF (best available techniques
reference) requirements issued by the EU. Mitsubishi Power's FGD technologies
for lignite-fired boilers, coupled with its successful track record of supplying
more than 300 units worldwide, were key factors behind the company's selection
to receive this latest order.
Going forward, Mitsubishi Power will continue to proactively propose its
high-performance and high-efficiency desulfurization and denitration systems and
electrostatic precipitators, as well as its Air Quality Control Systems (AQCS)
integrating these offerings, to the European and other global markets, where
demand for such equipment is expected to grow as emissions regulations become
increasingly severe. In doing so, the company is committed to helping reduce
environmental impact on global scale.
NTPC has Awarded 50 GW of FGD Contracts
NTPC has awarded contracts for installation of flue-gas desulfurization (FGD)
technology for its 50 GW thermal power generation capacities, including the
Dadri plant where the work is in advanced stages. The company has placed an
award (of contract) for 50 GW of FGDs at various locations so far to date, it
said in a statement.
At the Dadri plant, FGD installation is in advanced stages, it added.
At present, installed power generation capacity of the NTPC Group is 62,910 MW
(including 11,755 MW through JVs/subsidiaries), comprising 45 NTPC stations (24
coal-based, seven gas-based, one hydro, one small hydro, 11 solar PV and one
wind-based station).
Its 25 joint venture stations comprise nine
coal-based, four gas-based, eight hydro, one small hydro, two wind and one solar
PV.
The company said the NTPC Dadri power plant is
striving to become the cleanest coal-fired power plant in the country and is
complying with all the Central Pollution Control Board (CPCB) guidelines on
emissions. All the emission parameters
are being monitored online and transmitted to CPCB on real time basis, it said.
Flue gas emissions and particulate matter are
well within the CPCB norms, with high efficiency ESPs in service in all the four
units of 210 MW each and two units of 490 MW each, it added.
For sulfur oxides reduction, a Dry Sorbent
Injection (DSI) system has been installed in 210 MW units for the first time in
the country and now all the four units are meeting emission norms, it added.
Besides, it said the FGD system is in advanced
stage of implementation in 490 MW units by BHEL with technology from Mitsubishi
Power Works, Japan.
All the 210 MW units were already compliant to nitrogen oxides emission norms.
In 490 MW units, SOFA (Separated Overfire Air) system has been installed and all
the units now comply with the norms for nitrogen oxides.
The NTPC Dadri plant 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 8,000 tons of pellets have been fired
in the boilers of the NTPC Dadri plant, which is equivalent to almost 4,000
acres of farm fire avoided, it said.
GE Power to Supply DeNOx System to NTPC Baruni
GE Power India Ltd (GEPIL) has secured the contract to supply a DeNOx system
to NTPC Ltd for their Barauni Thermal Power Plant (2x250 MW) in Bihar.
This project has an order value of Rs 12.78 crore ($1.7 million). GEPIL will set
up the combustion modification technology for all the steam generators in
Barauni stage-II, Unit 8 and 9 to meet the NOx emission limit of 450
mg/Nm3 to comply with the Indian environmental requirements.
Supporting the 'AatmaNirbhar Bharat' initiative of the Government, all the major
components for the project will be manufactured in India. GE's Durgapur facility
in West Bengal will supply the pressure parts and other components will also be
procured locally from various sub vendors.
Prashant Jain, Managing Director of GE Power India Ltd, said: "We are truly
delighted to have received this prestigious order from NTPC which reflects GE's
commitment to help the country address the critical issue of emission from coal
power plants. This win also support's GEPIL's strategy to continue to deliver
aligned with the local market demand and the national interests of the country."
Recently, GEPIL had also won another project for combustion modification for NOx control
along with advanced firing system equipment from Uttar Pradesh Rajya Vidyut
Utpadan Nigam Limited (UPRVUNL) to meet the NOx emission norms for
their Harduaganj, Parichha and Anpara plants.
Doosan Lentjes has been awarded a contract by DHE (Dinslakener
Holz-Energiezentrum) to build the lot 1 of the new wood combustion plant,
located in Dinslaken. The order comprises the turnkey delivery, installation and
commissioning of two incineration lines on a chute-to-stack basis. Start-up is
expected to be in mid of 2023.
Once in operation, the new plant will thermally treat about 200,000 tons of
waste wood (Class l-lll) per year. Applying effective incineration technology
will ensure that the maximum of the climate-friendly energy contained in the
wood is harnessed to generate sustainable electricity and heat. This will reduce
the share of fossil fuels required to meet local energy needs and save more than
125,000 tons of CO2 per year, helping the City of Dinslaken to pursue
its strict decarbonization policy.
Doosan Lentjes’ scope of delivery will include the fuel supply and transports as
well as the combustion and boiler plant based on water-cooled reciprocating
grate technology. In addition, the company will provide a complete dry flue gas
cleaning system, stack as well as electrical and control systems.
The modern air quality control facility will ensure compliance with emission
limit values according to the revised European BREF (best available techniques
reference) documents. Harmful acid gases, hydrocarbons and heavy metals will be
treated and separated in the Circoclean® gas cleaning system to be
installed, while the selective catalytic reduction (SCR) will remove nitrogen
oxides.
Gerhard Lohe, Product Director Waste-to-Energy at Doosan Lentjes comments, “In
Dinslaken, we are ready to prove the flexibility of both our incineration and
flue gas cleaning processes. Originally used in traditional waste-to-energy
applications, we will adapt our grate technology to the combustion properties of
biomass fuels and thus ensure efficient use of their energetic potential.
Furthermore, the plant will be the first of its kind to comply with the new BREF
requirements. This means that it will not only burn an almost CO2-neutral
fuel but will also produce negligible emissions. This reflects our efforts to
support the industry in shaping the energy transition and make tomorrow’s heat
and power generation more sustainable.”
Doosan Lentjes is a specialist in the delivery of proven and reliable
waste-to-energy technology, converting millions of tons of waste into valuable
energy every year. This helps customers all over the world reduce their waste
volumes and simultaneously provide a sustainable energy source.
Doosan Heavy Industries &
Construction and Doosan Lentjes to Deliver Their First Joint Waste-To-Energy
Project in Poland
Doosan Heavy Industries & Construction (DHIC) and its subsidiary and consortium
partner Doosan Lentjes have been awarded the turnkey contract to supply a new
waste-to-energy (WtE) plant in Olsztyn, Poland. It is the first joint WtE
project between the Korean EPC company and its German engineering technology
subsidiary. The new plant will be based on Doosan Lentjes proven water-cooled
counter-reciprocating grate and boiler as well as flue gas cleaning technology.
Contracted by the plant owner and operator, Dobra Energia dla Olsztyna, the
consortium will deliver the entire one-line plant including combustion grate,
boiler and dry Circoclean flue gas cleaning, and Selective Catalytic Reduction
(SCR). Furthermore, civil works and two gas-fired peak load boilers (PLB) along
with site management will be part of the supply.
Commenting on the project, Gerhard Lohe, Product Director Waste-to-Energy at
Doosan Lentjes, says: This project is the first waste-to-energy plant that DHIC
and Doosan Lentjes are executing together. It proves that international EPC
experience in large-scale plant construction projects as well as a rich heritage
and competence in modern WtE technology is a strong combination of capabilities
that meets the demands of the industry. Customers can therefore expect an
interface-optimized delivery of the project from one source. Our
two companies can look back on many years of experience in the execution of
large, but also smaller power plant projects all over the world. The joint entry
into the global WtE market now represents the next step in the exploitation of
synergy effects within the Group.
Co-funded by the EU, the plant will meet all European requirements with regard
to recycling and disposal, while, at the same time, complying with the emission
limits according to the new BREF documents (Best Available Techniques
Reference).
The new plant, scheduled to be completed in 2023, will be capable of processing
up to 110,000 tons of refused derived fuel (RDF) per year produced by the
citizens of the greater Olsztyn area. Covering roughly 30% of the district
heating demand in the region, the new plant will help to compensate for the heat
loss that will accompany the closure of the local coal-fired Michelin power
plant in the near future. This will ensure a continuously reliable and secure
supply of district heating to the local citizens. At the same time, using the
energy contained in the waste offers a sustainable alternative to fossil fuels.
In addition, the thermal treatment of the waste makes it possible to reduce the
landfill space required.
Commenting on the project, Mariusz Marciniak, Director for Central and Eastern
Europe, says: The new plant in Olsztyn will be a milestone in improving the
waste management infrastructure in Poland. It is the eighth plant of this type
to be built in the country and it is crucial for achieving the objectives of the
EU waste hierarchy. This hierarchy gives priority to energy recovery from waste
over simple landfill and, thus, requires the energy potential of solid waste to
be harnessed. One of the eight plants, the one in Krakow, was built with the
involvement of Doosan Lentjes as technology provider for both grate and boiler.
The plant benefits from the technological experience of Doosan Lentjes and has
been reliably converting municipal waste from the Krakow region into energy
since 2013. Doosan Lentjes will apply the experience gained in Krakow to the
second project recently won on the Polish market to the benefit of
the customer and final client, the local energy provider, MPEC Olsztyn.
Thermax Registers 19% Higher Net Profit in Q2
For the second quarter of FY2020-21, at the consolidated level, Thermax
Group posted an operating revenue of Rs. 1,141 crore, down 29% as compared to
Rs. 1,606 crore in the corresponding quarter, last year. Profit after tax for
the quarter was Rs. 31 crore, up 19% as compared to Rs. 26 crore in the
corresponding quarter of FY2019-20. Exceptional items impacted the results on
account of a Voluntary Retirement Scheme, impairment of certain assets
of Boilerworks Properties ApS (Denmark) and provision for closure of German
subsidiary claims, totaling to Rs. 24.65 crore.
As on September 30, 2020, Thermax Group had an order balance of Rs. 5,190 crore
(Rs. 5,334 crore), down 3%. Order booking for the quarter was 35% lower at Rs.
1,114 crore (Rs. 1,723 crore). The group’s performance improved over Q1 due to
partial resumption in industrial activities post COVID induced lockdown.
However, muted capacity expansion in majority sectors continued to impact the
company’s revenue and order book.
In November, Thermax Group concluded a major order to set up a captive Combined
Heat and Power (CHP) plant on an EPC basis for Assam Bio Refinery Private
Limited (ABRPL), a public private joint venture company. ABRPL will develop
India’s first biorefinery to produce cellulosic ethanol from bamboo biomass.
On a standalone basis, Thermax posted an operating revenue of Rs. 715 crore
during the quarter, 15% lower as compared to Rs. 838 crore in the previous year.
Profit after tax for the quarter was Rs. 34 crore, lower than last year’s profit
of Rs. 39 crore. Exceptional items impacted results on account of a Voluntary
Retirement Scheme and provision for closure of German subsidiary claims,
totaling to Rs. 12.54 crore.
Order balance on September 30, 2020, stood at Rs. 3,543 crore (Rs. 3,208 crore),
up 10%. Order booking for the quarter, Rs. 626 crore (Rs. 1,303 crore) was 52%
lower.
M.S. Unnikrishnan retired as the MD & CEO of Thermax Group on August 31, 2020,
and Ashish Bhandari took over as the new MD & CEO, effective September 1, 2020.
CECO Environmental Corp Gaining Momentum Despite Economic Climate
CECO reported lower sales and earnings in the 3rd quarter
Highlights of the Third Quarter 2020*
·
Revenue of $77.4 million, compared with $85.3 million
·
Gross profit of $24.8 million (32.0% margin), compared with $28.8 million (33.8%
margin)
·
Operating income of $1.0 million, compared with $4.1 million
·
Non-GAAP operating income of $5.9 million, compared with $7.0 million
·
Net loss of $(0.2) million, compared with net income $1.9 million
·
Non-GAAP net income of $3.8 million, compared with $4.2 million
·
Adjusted EBITDA of $7.3 million, compared with $8.4 million
·
Net loss per diluted share was $(0.01), compared with net income per diluted
share of $0.05
·
Non-GAAP net income per diluted share of $0.11, compared with $0.12
·
Bookings of $66.8 million, compared with $115.7 million
·
Backlog of $189.1 million, compared with $204.6 million as of June 30, 2020
Todd Gleason, CECO's Chief Executive Officer, commented, "During the third
quarter, the CECO team continued to deliver solid execution for our customers
and the company started to see emerging momentum in various industrial markets.
Additionally, the company maintained its focus on streamlining costs which
partially offset declines in revenue. Unfortunately, the energy markets remain
challenged as global capital spending continues to be disrupted by the impact of
the COVID-19 pandemic."
Gleason added, "We expect the markets to remain choppy and uncertain in the
near-term, but we believe we can maintain our customer-focused execution and
cost management to deliver future solid results. The company is also launching
new strategic growth programs to expand into adjacent markets and more
repeatable revenue streams. Furthermore, the company has kicked-off our
Environmental, Social and Governance (ESG) program which will highlight the many
good and important areas of leadership CECO drives and is committed to advance
across each component."
Revenue in the first nine months of 2020 was $233.1 million, down 7.7% from
$252.5 million in the prior-year period.
Operating income was $9.7 million for the first nine months of 2020 (4.2%
margin), compared with $11.0 million in the prior-year period (4.4%
margin). Operating income on a non-GAAP basis was $19.6 million for the first
nine months of 2020 (8.4% margin), compared with $18.6 million in the prior-year
period (7.4% margin).
Net income was $6.4 million for the first nine months of 2020, compared with
$9.3 million in the prior-year period. Net income per diluted share was $0.18
for the first nine months of 2020, compared with $0.26 in the prior-year period.
Net income on a non-GAAP basis was $14.0 million for the first nine months of
2020, compared with $11.3 million in the prior-year period.