FGD and DeNOx
NEWSLETTER
April 2021
No. 515
Table of Contents
COAL – US
EPA Finalizes Rule to Curb Cross-State Pollution
B&W Thermal Awarded $20 Million Technology Replacement Contract for North America Power Plant
Dustbuster™ SCR Catalyst Has Proven Performance in Over 11,000 MW of Coal-fired Power Units Since 2016
COAL WORLD
The Waigaoqiao 3 Coal-fired
Power Plant Incorporates Energy Improvements
AUMA Supplied 2,300
Actuators to 6 NTPC Plants
FGD Regulations in India
Being Delayed Again
Study Reveals Coal Ash
Pollution From Dominican Republic Plant
EDR Project at NTPC
Study Urges China to Shut
100,000 MW of Poorly Performing Coal Plants
Mitsubishi Supporting kVukng
Aug 2 Coal Plant
Hungary Confirms Coal Exit by 2025
Japanese Utilities Accelerate Coal Exit Plans
BIOMASS
Valmet
Wins Polish Biomass Conversion
Lisbjerg Power Plant Has 50 AUMA Electric Actuators
First
German Straw-fired Plant in Emlicheim Uses 30 AUMA Actuators
Skaerbaek Power Plant Adds 100 Auma Actuators
BUSINESS
EU
Tougher Standards on Combustion Plant Air Pollution Will Take Effect This Year
Crane Projects 2021 Sales of Over $3 Billion
Babcock & Wilcox 2020 Revenues Down 34%
Hillenbrand Completes Sale of Abel Pumps to IDEX Corporation From Sales Leads to
Leadership
IEA
Predicts Solar Will Overtake Coal in Indian Power Generation
COAL – US
EPA Finalizes Rule to Curb Cross-State Pollution
The U.S. Environmental Protection Agency (EPA) has issued an update and
finalized a pollution rule that will require reductions in ozone emissions from
power plants in 12 states this year.
The update to the Cross-State Air Pollution Rule (CSAPR), issued March 15, is
designed to curb emissions of nitrogen oxide (NOx)—primarily from
coal-fired power plants—ahead of a July deadline for states to comply with the
2008 ozone National Ambient Air Quality Standards (NAAQS) established during the
Obama administration.
A federal judge last year ordered the EPA to act by March 15 to reduce
cross-state pollution from seven states specified in a lawsuit brought by New
Jersey, New York, and other states. Power plant emissions this summer will help
determine whether states face additional regulatory requirements moving forward.
Monday’s ruling follows several prior regulations, along with litigation, going
back more than a decade regarding interstate pollution. The Clean Air Act, as
part of its “Good Neighbor” provision, requires upwind states to address
emissions because that pollution causes air quality
problems in other states.
“Millions of people across the Eastern U.S. suffer because of the coal plant
pollution that blows into their communities from neighboring states. The update
to the Cross-State Air Pollution Rule is a common-sense step to help them,” said
Graham McCahan, Environmental Defense Fund (EDF) senior attorney, in a statement
Tuesday. “We can do much more, though. We urge EPA to build on this foundation
and strengthen smog protections for all Americans who live near coal plants or
in downwind states.”
The updated rule requires power plants in 12 states to reduce their NOx
emissions by improving the operation of NOx pollution controls that
are already in place, and by upgrading NOx pollution controls. NOx
is a major component of ground-level ozone, better known as smog, and
contributes to the inability of downwind states to meet an EPA health-based smog
standard set in 2008.

The states impacted by the EPA’s Cross-State Air Pollution Rule. Courtesy: EPA
The EPA has identified 22 downwind states in the CSAPR (some states are
considered both upwind and downwind). The update issued Monday is in response to
a court order requiring the agency to strengthen protections for those states
and will require that coal units in 12 states – Illinois, Indiana, Kentucky,
Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania,
Virginia, and West Virginia—use the upgraded and more-effective pollution
controls already installed, and also update those controls. The agency has noted
that coal-fired power plants with pollution controls may not operate them
regularly or may not use them to full capacity.
The update requires those plants to begin reducing pollution immediately after
the rule is legally effective, which is 60 days after its publication in the Federal
Register. It is ultimately expected to reduce NOx pollution from
those plants by 19% over 2019 levels, according to the EPA. The agency said the
rule is expected to provide an estimated $2.8 billion in health and
environmental benefits.
The EPA noted that more than one-third of all coal-fired power plants in the
Eastern U.S. have, to date, not installed modern pollution controls for NOx,
and thus are not subject to the update. The EDF in a news release Tuesday said,
“EPA will need to take further action to protect Americans from the more than
250,000 tons of NOx, and more than 300 million tons of climate
pollution, those plants emitted in 2018.”
B&W Thermal Awarded $20 Million Technology Replacement Contract for North
America Power Plant
Babcock & Wilcox (B&W) announced that its B&W Thermal segment will design,
supply, and install replacement thermal technologies for a power plant in North
America. The contract value is more than $20 million.
B&W Thermal will design, fabricate, and supply a replacement for the unit’s
primary superheater pendant, a second stage economizer and other equipment to
efficiently extend the operating life of the plant’s existing technologies.
B&W’s subsidiary, Babcock & Wilcox Construction Co., LLC, will provide
installation services.
“Maintenance of the existing North American power fleet is a high priority for our customers, and B&W Thermal has the resources and knowledge to keep plants running at optimal levels of performance,” said B&W Chief Operating Officer Jimmy Morgan. “Whether supplying replacement parts, maintenance services, repairs and improvements of OEM technologies or competitors’ equipment, or identifying and implementing efficiency and performance improvements, B&W Thermal’s experienced and reliable teams are able to service plants in North America and worldwide.”
Dustbuster™ SCR Catalyst Has Proven Performance in Over 11,000 MW of Coal-Fired Power Units Since 2016
In making the announcement last year, Mike Mattes, President & CEO of Cormetech
said, “Demand continues to be strong as utilities worldwide recognize the
benefits of DustBuster™ and are looking to improve their coal-fired generation
SCR performance and meet new environmental emission standards in an economical
way. DustBuster™ is our most innovative Coal SCR catalyst technology to date and
solves many of the issues associated with plate style SCR catalyst.
Specifically, it has superior pluggage resistance, can be regenerated more
effectively to new catalyst performance, will not corrode, or delaminate, is
100% recyclable and made in the USA. Additionally, its SO2 conversion
percentage does not increase over time due to iron in the metal mesh being
exposed to flue gas.”
DustBuster™ utilizes 100% catalyst material and is often used in conjunction
with Honeycomb catalyst on a layer to maximize life and minimize pluggage in
problem areas of the SCR. A key feature associated with all of Cormetech’s SCR
catalyst, including DustBuster™, is its ability to be efficiently re-used
through Cormetech’s proprietary cleaning technology and then regenerated or
recycled to extend SCR catalyst life. As a result, the need to landfill the
spent honeycomb type catalyst can be completely eliminated, significantly
reducing a utility’s overall compliance costs, and eliminating an environmental
legacy.
Cormetech’s DustBuster™ SCR catalyst consists of optimized channel geometries,
up to 11mm hydraulic pitch, that facilitate the flow of ash-laden flue gas
through catalytic surfaces resulting in extremely low pluggage in an innovative
honeycomb SCR catalyst platform which delivers higher DeNOx potential and very
low SO2 conversion percentage. DustBuster’s uniform single continuous extruded
element and extra-large hydraulic diameter rectangular openings with larger
aspect ratios prevent dust build-up and catalyst pluggage inside the reac
COAL WORLD
The Waigaoqiao 3 Coal-fired Power Plant Incorporates Energy Improvements
Led by the chief engineer Weizhong Feng, engineers at the Waigaoqiao 3
coal-fired power plant have been working hard and continuously on a series of
innovations designed to substantially improve coal-fired power plant
performance, a package of measures they call the ‘5E technologies’: Energy
saving; Efficiency preservation; Environmental protection; Ensuring safety; and
Elevated turbine-generator.
Apart from the elevated turbine-generator concept, the other four measures have
been applied successfully at Waigaoqiao 3, rendering it one of the most advanced
high efficiency power plants in the world. Currently, the team implemented the
full portfolio of 5E technologies at the new 1350 MWe Pingshan Phase 2
ultrasupercritical coal-fired power plant,
AUMA Supplied 2,300 Actuators to 6 NTPC Plants
AUMA supplied nearly 2,300 actuators for six large coal-fired power plants being
built by NTPC, India’s largest power utility. AUMA India provided
500 actuators for each of the three plants at Lara, in Chhattisgarh, Barh in
Bihar, and Gadarwara in Madhya Pradesh.
Another 484 actuators are going to Malwa, also in Madhya Pradesh, and 306 to two
smaller projects at Meja in Uttar Pradesh and Solapur in Maharashtra.
The six projects range in size from 2 x 660 MW to 5 x 800 MW and all, except the
Lara plant, are supercritical.
The actuators are deployed for intelligent valve control across all processes
within the plants, including feedwater treatment, steam generation, combustion
air control, turbine control, flue gas management, and cooling water supply.
FGD Regulations in India Being Delayed Again
India’s power ministry has proposed pushing back the deadlines for adoption of
new emission norms by coal-fired power plants, saying “an unworkable time
schedule” would burden utilities and lead to an increase in power tariffs.
India initially had set a 2017 deadline for thermal power plants to comply with
emissions standards for installing Flue Gas Desulfurization (FGD) units that cut
emissions of toxic sulfur dioxide. That was later changed to varying deadlines
for different regions, ending in 2022.
Under the latest proposal, no new dates have been set. However, a final decision
will have to be approved by the Supreme Court, which is hearing the issue.
“The target should be to maintain uniform ambient air quality across the country
and not uniform emission norms for thermal power plants,” Nishat Kumar, an
official at India’s Ministry of Power said in a January 2 note to the country’s
environment ministry, seen by Reuters.
“This could avoid immediate increase in power price in various relatively clean
areas of the country (and) avoid unnecessary burden on power
utilities/consumers,” Kumar said.
The power ministry proposed a “graded action plan,” whereby areas where plants
are located would be graded according to the severity of pollution, with Region
1 referring to critically polluted areas, and Region 5 being the least polluted.
“Strict control of emissions shall be required in such key areas for thermal
power stations categorized under Region 1,” Kumar said in the memo.
Plants in Region 2 could begin to take action one year after those in Region 1,
he said.
“Presently no action is required for power plants that are situated under Region
3, 4 & 5,” he said.
Indian cities have some of the world’s most polluted air, much of which is blamed on coal-fired plants in close proximity to urban centers. Vehicular pollution, dust, industries, and crop burning add to the bad air quality.
Sunil Dahiya, an analyst at the Centre for Research on Energy and Clean Air, said of the power ministry directive: “Such claims after 5 years of emission standards being in existence create a severe dent on the government’s image.”
Study Reveals Coal Ash Pollution From Dominican Republic Plant
A study of coal ash samples from the Punta Catalina coal plant in the Dominican Republic has found leachates of heavy metals including molybdenum and selenium at levels higher than recommended by the World Health Organization and US Environmental Protection Agency.
The 752 MW Punta Catalina plant has been dogged by construction delays and scandals, with the two units finally commissioned in 2020. However, Duke University researchers warned “uncontrolled management and release of the coal ash from the Punta Catalina plant to the environment and water resources, poses high environmental and human health risks.” Coal for the plant has been supplied by the US mining company, Consol Energy.
EDR Project at NTPC
Development of a pilot 1000 LPH (1m3 per hour/24TPD) system and installation at
an NTPC Station for study of system efficiency in terms of water recovery and
ion removal capacity.
Technology:
Electro-Dialysis Reversal (EDR) is an advanced water treatment process based on
electrically charged membranes. In EDR, ion exchange membranes are used to
separate ionic impurities from water under the influence of DC electric field
through flowing water.
Recent developments in membrane technology (leading to cost reduction) and
tightening of environmental norms for water disposal and wastewater treatment
has renewed interest in EDR technology as an alternative to RO based
technologies
Comparison with RO:
EDR Systems have many inherent advantages over RO Systems which are tabulated as
below-
|
SNo. |
Feature |
Reverse Osmosis |
Electrodialysis |
|
1 |
Power Consumption |
~5.0kwh/m3 |
~2.0kwh/m3 |
|
2 |
Water Recovery |
<50% for Single Stage Systems |
>70% for Single Stage Systems |
|
3 |
Membrane Life |
Around 3 years |
More than 10 years due to polarity reversal and absence of high
pressure. |
|
4 |
Operating Conditions |
Low Operating Temperature Range and Chemical Withstand |
High Temperature and Chemical Withstand (up to 50 °C and 1–2 ppm
chlorine) |
Study Urges China to Shut 100,000 MW of Poorly Performing Coal Plants
A study by University of Maryland researchers estimates 112,000 MW of Chinese
coal-fired power plant capacity performs so poorly on economic and environmental
grounds that the plants could be shut down rapidly. The paper, which was
published in Nature Communications, argues the remaining plants could operate
for 20 to 30 years but with declining rates of use and with their role shifting
from catering for baseload demand to catering for peak loads. They argue that
new coal-fired power plants are not compatible with the goals of the Paris
Agreement and would risk becoming stranded assets.
Mitsubishi Supporting kVukng Aug 2 Coal Plant
Mitsubishi Corporation is pulling out from a US$2 billion power plant project in
Vietnam last week, but a smaller project backed by both Tokyo and Hanoi still
looks to be going ahead.
Mitsubishi holds a 40 percent stake in the 1.2-gigawatt Vung Ang 2 coal-fired
power plant in Ha Tinh province, with the rest being held by South Korean
state-run utility Korea Electric Power Corporation (Kepco) and Japanese company
Chugoku Electric Power, according to the Netherlands-based finance watcher NGO
BankTrack. Loans totaling US$1.7 billion have been extended to the project by
the state-owned Japan Bank for International Cooperation (JBIC) and state-run
Export-Import Bank of Korea, alongside other private institutions.
As one of the world’s fastest growing economies – even amid a global recession
caused by the Covid-19 pandemic – Vietnam’s electricity demand has risen by
about 12 percent per year in recent years.
More than half of its energy needs are met by coal-fired power stations at
present, though the country is a signatory to the Paris climate agreement and
has pledged to reduce its dependence on coal to 27 percent by 2030, while
raising the share of non-hydroelectric renewable sources in its energy mix.
JBIC’s decision to finance Vung Ang 2 through a US$636 million loan “was made by
taking into account Japanese government policy as well as the energy policies in
the partner country [of Vietnam]”, said spokesman for the bank, adding that JBIC
had been “promoting the energy transition from coal to gas and/or renewable
energy through direct dialogue with the Vietnamese government which we will
continue to strengthen.”
Hungary Confirms Coal Exit by 2025
Hungary’s Secretary of State for European Union Affairs, Attila Steiner, has
confirmed the 884 MW RWE-owned Matra lignite plant, the country’s last, will be
closed by 2025. The expansion of the 50-year-old plant had been mooted over the
last decade but was blocked after a court ruling set aside the environmental
permit for a new 500 MW unit. The government told the Powering Past Coal summit
it now plans to increase solar capacity to 6,000 MW and use European Union funds
to retrain workers affected by the closure of the Matra plant. Hungary had
previously been planning on the Matra plant operating until 2029, at which point
some of the units would have been 60 years old.
Japanese Utilities Accelerate Coal Exit Plans
Sojitz, a major Japanese trading house, has announced it will accelerate its
exit from thermal coal by halving its investments in projects by 2025 and
eliminating them entirely by 2030. The company said it would exit from all
metallurgical coal projects by 2050. Previously the company said it would cut
its thermal coal exposure in half by 2030.
Another Japanese trading company, Maurbeni, has also announced it plans to
accelerate its exit from coal-fired power plants. The company currently has
about 2,600 MW of coal capacity and is aiming to cut that to 1,500 MW by 2025
and 1,300 MW by 2030. While the company has ruled out investing in any further
coal-fired power plants, it said it will continue to invest in new gas projects.
To realize the significant benefits associated with co-development of Rio
Grande LNG and the CCS project, NextDecade anticipates achieving final
investment decision (FID) on a minimum of two trains at Rio Grande LNG in 2021
and FID on NEXT Carbon Solutions’ CCS project soon after FID at Rio Grande LNG.
BIOMASS
Valmet Wins Polish Biomass Conversion
Valmet has received an order from Zespól Elektrowni Patnów-Adamów-Konin SA (ZE PAK) to convert a lignite-fired boiler into a biomass-fired boiler at its power plant in Konin, Poland.
Under the €20 million order, Valmet will convert the existing boiler to
biomass-firing using bubbling fluidized bed (BFB) technology. Additionally,
Valmet will supply a selective non-catalytic reduction (SNCR) solution to lower
NOx emissions as well as modernize the plant’s instrumentation and
electrification systems.
“The reconstruction of the K-7 boiler is the main element of our transition
project from fossil-based energy to renewable energy production,” said Zygmunt
Artwik, Vice President, ZE PAK. “Converting the existing boiler from coal into
biomass combustion is a very cost-effective way for us to carry out this energy
transition. The investment will enable Konin to be the first Polish city that is
heated with energy originating exclusively from renewable sources.”
The converted boiler plant will be handed over to the customer in the autumn of
2021.
Lisbjerg Power Plant Has 50 AUMA Electric Actuators
With its output of 38 MW of electricity and 78 MW of heat, the Lisbjerg power
plant burns up to 240,000 t/y of straw from nearby farms. To increase its
flexibility, the plant can also burn up to 50 percent woodchips. Four parallel
conveying lanes and feeders supply straw to the boiler. Combustion takes place
on a water-cooled vibrating grate.
Approximately 50 of AUMA’s latest-generation SA and SAR electric
actuators automate valves in the Lisbjerg plant.
Equipped with AC intelligent controls, all the actuators are centrally
controlled via a Profibus DP V1 interface. Notable is the actuator on the
condenser bypass damper, which has special safety requirements.
To make full use of its residual heat, the flue gas passes through a condenser.
In case this needs to be taken offline for maintenance, the plant has a large
bypass damper that allows the flue gas to be routed directly to the chimney.
Failure of the damper to open when required could lead to a plant shutdown.
The contractor of the plant contacted Kolster, a Danish damper manufacturer that
is part of engineering company KSM Kragelund. Kolster has a long history of
working with Grønbech & Sønner, AUMA’s representative in Denmark. Together,
Kolster and Grønbech & Sønner decided on the most suitable combination of
actuator, control unit and gearbox for this critical application.
The designers specified that the actuator must meet the requirements of at least
Safety Integrity Level (SIL) 1, as specified by IEC 61508 edition 2. They chose
a Kolster KLS 1500 × 2750 mm damper with an AUMA SA 14.6 actuator, AC 01.2 SIL
actuator controls, and GS 250.3 gearbox.
This actuator combination is designed for applications requiring a high degree
of safety and meets SIL 2 requirements. At Lisbjerg it is used for both normal
and safety-critical functions.
First German Straw-fired Plant in Emlicheim Uses 30 AUMA Actuators
The BEKW power plant in Emlichheim is the first in Germany to rely on straw as a
fuel. This cogeneration plant (10.2 MWe / 49.8 MW) started up in 2013
and burns approximately 70,000 t/y of straw from surrounding farms. It achieves
a record primary energy efficiency of approximately 90 percent. Technical
availability is 98 percent, which is excellent for this type of plant.
AUMA electric actuators contribute to both the efficiency and the reliability of the Emlichheim plant. In use are around 30 SA actuators for open-close duty and SAR actuators for modulating duty, all equipped with AC intelligent actuator controls.
An example application is the control of water flow to the spray attemperators
located after the superheaters. Variations in the quality of the straw fuel, and
the continuously changing demand for district heat, make this a challenging task
that the AUMA actuators are well placed to handle.
Skaerbaek Power Plant Adds 100 Auma Actuators
Skaerbaek
power plant near Fredericia, Denmark, is one of three power plants
operated by energy giant DONG that have recently been converted to biomass.
Originally built for natural gas, the plant was converted to dual-fuel
cogeneration in 2017. Two new highly efficient 140 MW wood chip boilers were
installed during the refurbishment. Wood chips are the primary fuel, with
natural gas as a backup.
The main purpose of the plant is to provide district heating for roughly 200,000
people. However, the new wood chip boilers can also supply steam to the existing
turbine, to the extent that the plant can be dedicated entirely to electricity
generation. This ensures maximum flexibility in the summer, and during periods
when wind or solar electricity production drops. The plant also has a 5500 GJ
heat storage system that covers approximately 8 hours of heat consumption on a
winter’s day.
Installing the wood chip boilers required new pipelines for water and steam to
be installed and linked to the original gas-fired plant. Approximately 100 SIPOS
SEVEN actuators were added.
The SIPOS SEVEN actuators, which are engineered and manufactured by AUMA Group
company SIPOS Aktorik, incorporate frequency converters that allow their
operating speeds to be adjusted during the valve travel. Variable speed offers
significant advantages in a wide variety of closed-loop and open-loop control
applications, since each change of valve position can be matched to its optimum
operating speed.
Variable-speed operation also makes SIPOS SEVEN actuators very versatile since a
single size of actuator typically covers eight different torque settings and
seven operating speeds. This reduces the number of actuator variants required
across the plant, and so simplifies inventory management. Torques and speeds can
be adjusted at any time to optimize the process or accommodate process changes.
BUSINESS
EU Tougher Standards on Combustion Plant Air Pollution Will Take Effect This
Year
The European Union (EU) has introduced tougher restrictions on large combustion
plants with the implementation of their new BREF guidance this year. The
reference document was published in August 2017 and tightened controls regarding
the emissions of dust, nitrogen oxides (NOx), sulfur dioxide (SO2),
mercury, particulate matter (PM) and carbon monoxide (though only regarding
gas-fired power plants for CO).
With large combustion plants having four years to bring their operations up to
speed and equip them with the requisite technologies to achieve compliance, the
BREF requirements will become legally binding from August this year. That means
that implicated parties have just over four months to ensure that they have the
right monitoring mechanisms in place to ensure they do not exceed thresholds and
incur fines as a result.
What is BREF?
The BREF document—so named as an approximate acronym for the term “Best
available technique REFerence document”—puts down in writing the environmental
performance standards that are expected of large combustion plants. It
encompasses a variety of different facets pertaining to the issue, including air
pollution, soil pollution, water pollution and thermal efficiency and, for the
first time, will become legally binding later this year under the mandate of the
Industrial Emissions Directive (IED).
Drafting of the BREF first began in 2011 and took place over several years and a
number of different revisions, as a matter of collaboration from the Technical
Working Group (TWG), which is comprised of the European Commission,
representatives from each member state, NGOs, and industry members. The whole
process was overseen by the European Pollution Prevention and Control Bureau, a
regulatory arm of the Commission’s Directorate General Environment and Joint
Research Centre (JRC).
The first draft of the BREF was published in July 2013, subsequently undergoing
further revisions before being finally ratified and published in August 2017
following a vote by all member states of the EU in April of the same year. The
name given to this specific process of law-making is called the “Sevilla
Process”, due to the fact that the JRC is based in Sevilla, Spain.
What does the BREF cover?
The recommendations outlined in the BREF relate to emissions of NOx,
SO2, dust, mercury, PM, and CO, though the CO figures will apply to
gas-fired power plants only. However, it’s likely to be coal and lignite plants
which are most heavily affected by the regulations, given that they set a yearly
average threshold of no more than 175mg/Nm3 for all plants burning
those fossil fuels with a total thermal output of 300 MW or more.
This means that such plants may need to install expensive technical equipment to
retrofit their operations and ensure they do not exceed the limitations. More
information on the exact facts and figures involved can be found in the
document, The European Union’s Large Combustion Plant BREF – Monitoring and
Compliance Requirements.
What is an EU BAT?
All of the thresholds arrived at in the BREF are based upon the conclusions
arrived at in BATs, or Best Available Techniques. This concept was originally a
part of Industrial Pollution Prevention Control Directive (IPPC), one of the
seven previously existing directives (and one of two large combustion plant
directives) that were superseded by the IED.
Using BATs, the TWG arrive at BAT-associated emissions levels (or BAT AELS). BAT
AELS differ from previous standards in that they define what must be complied
with on a daily or yearly average, whereas the pre-existing emissions limit
values (ELVs) worked on a monthly basis. As such, it’s difficult to conduct a
like-for-like comparison between the two, though on the whole, the standards set
out in the BREF are stricter than those defined in the IED.
However, it should be noted that allowances are made for exceptional cases. By
the very definition of BATs, they rely upon the technology and resources
available to an individual plant. Therefore, a large combustion plant which can
demonstrate that the costs involved in making the necessary upgrades to its
facility outweigh the environmental benefits that those upgrades would bring is
able to apply for an exception to made in their case. The national body
responsible for issuing permits can then decide whether or not that exception is
applicable and, if so, issue the license even though the plant exceeds BAT AELs.
What does this mean for pollution levels?
Under the terms of the legally binding BREF, large combustion plants will now
have to take measures to ensure that they do not emit excessive levels of major
contaminants like SO2, NOx and PM. That’s excellent news
for Europe’s airways, given that the European Commission has previously
indicated that the sector is responsible for up to a third of all the
conventional pollution generated by industrial activity.
In particular, large combustion plants are believed to contribute almost half
(46%) of all European SO2 emissions, as well as 18% of NOx
fumes and 4% of PM10 pollution. That makes them the largest single
contributor to industrial pollution in Europe. With around 3,500 large
combustion plants across the continent now accountable to the new regulations,
concerned inhabitants of the bloc can expect to see reduced levels of the
aforementioned contaminants from this year onwards.
Given that ambient air pollution is thought to be responsible for the premature
deaths of 800,000 people per year in Europe — roughly equivalent to one in every
eight deaths — the public health benefits of cleaning up the bloc’s airways are
obvious. Not only that, but the associated costs of dealing with poor air
quality (including medical bills, working time lost and other outlays) run into
the billions. According to one study, that works out to around an average cost
of €1,276 per capita per annum. In some of the most polluted cities, such as
Bucharest in Romania and Milan in Italy, the yearly personal expenditure caused
by air pollution is closer to €3,000.
As one of the most polluting industries in the world, coal-fired power plants
stand to be most affected by the new regulations — but so too do the public
living in the vicinity of such plants. Indeed, calculations made by the European
Environment Bureau (EEB) indicate that universal compliance with BREF could save
as many as 20,000 lives that would be lost due to coal-related illnesses alone.
Add to that figure the healthcare and fiscal savings engendered by other plants
falling into line and the new regulations are a strong step in the right
direction towards tackling Europe’s chronic coal problem.
As for the coal industry, it may well now be forced to modernize or withdraw.
Retrofitting dirty coal plants with abatement technology like Selective
Catalytic Reduction (SCR) or Selective Non-Catalytic Reduction (SNCR) devices is
a hugely expensive process, but one which many plants may need to undertake if
they are to avoid falling afoul of the new NOx parameters. Some
countries depend heavily upon coal for their energy generation needs in
comparison to others and so may find themselves out of pocket when complying
with the rules.
For example, Poland depends upon hard coal and lignite for over three-quarters
of the energy used to power its electrical grids. Understandably, the Polish
energy sector has been opposed to the imposition of stringent rules regarding NOx
and SO2 emissions from the outset, with Polish lobbyists complaining
that adhering to the guidelines will cost the industry a cumulative €5 billion.
Elsewhere, some other countries have already acted pre-emptively to wean
themselves off coal and reduce their reliance on the energy source. Britain is a
strong example of this. As recently as 2014, the country relied on coal for
almost a third (30%) of its energy needs; by 2018, that percentage had fallen to
just 5.4%. Today, there are only three active coal-fired power plants in the UK
and the government has indicated it plans to shut all three down by 2024 at the
latest.
The British government has always maintained its commitment to its environmental
goals, irrespective of its secession from the EU. Indeed, the EU Withdrawal Act
of 2018 enshrines into UK law those regulations defined by the IED, the BREF and
BAT AELS, ensuring that Britain will still be subject to the same laws as the EU
even after the Brexit process is complete.
The wording of legislation in the UK has been amended from that of the EU to
reference UK institutions rather than EU ones, transfer the power from the
latter to the former and ensure that Britain continues to meet its environmental
obligations with regard to the Paris climate summit and other international
agreements. However, the changes are merely cosmetic; the meat of the
regulations themselves will stay the same.
Given that the BAT AELS are scheduled to be revised on a regular basis, the UK
is looking at how to implement a process for defining its own thresholds going
forwards. This will take place in development and collaboration with each of the
devolved governments and the relevant authorities in each. The Clean Air
Strategy, published in 2019, sets out a firmer guideline for how this process
will take place.
Crane Projects 2021 Sales of Over $3 Billion
Crane Co. CR at its annual investor day communicated that solid
recovery in markets, organic growth investments, and mergers and acquisitions
will be important for its prospects. It also revised key projections upward for
2021.
Talking about end markets, the company believes that its Aerospace and
Electronics segment will benefit from growth in power conversion,
electrification, thermal management, sensing and space markets. The Fluid
Handling segment’s performance will get a boost from improvements in general
industrial, chemical, and pharmaceutical markets. The Payment and Merchandising
Technologies will gain from a recovery in the security, productivity, and
automation business.
Investments in organic growth too are priorities for the company. Important
areas of investment include product development, technology, innovation,
commercial excellence, and localization.
Regarding the projections for 2021, net sales are now expected to be $3,080
million, marking a rise from $3,055 million mentioned previously. On a
year-over-year basis, the revised sales projection reflects growth of 5% (or
2-4% organically) as compared with the earlier expectation of an increase of 4%
(or 1-3% organically).
On a segmental basis, organic sales of Fluid Handling are expected to grow 0.5%
from the previous year, while the same for Payment and Merchandising
Technologies is likely to advance 6%. Organic sales for Aerospace and
Electronics are expected to decline 8% and that for Engineered Materials is
expected to increase 20%.
Crane Fluid Handling supplies a wide range of isolation and control valves to
the power industry including triple offset butterfly valves.
Babcock & Wilcox 2020 Revenues Down 34%
Consolidated revenues in 2020 were $566.3 million, down 34% compared to 2019.
Revenues in all segments were adversely impacted by COVID-19, including the
postponement and delay of several projects. The GAAP operating loss in 2020 was
$1.7 million, inclusive of an insurance loss recovery of $26.0 million offset by
restructuring and settlement costs and advisory fees of $24.7 million, compared
to an operating loss of $29.4 million in 2019. The improvement in operating loss
was primarily due to the insurance loss recovery, the positive impact of cost
savings initiatives and a lower level of losses on the EPC loss contracts,
partially offset by the divestiture of Loibl and the impacts of COVID-19 on
revenue in all three segments. Adjusted EBITDA improved to $45.1 million
compared to $45.0 million in 2019. Total bookings in 2020 were $645.0 million,
and backlog on December 31, 2020 was $535.0 million, a 21.3% increase compared
to December 31, 2019.
Babcock & Wilcox Renewable segment revenues
were $156.2 million in 2020, a decrease of 24.0% compared to $205.6 million in
2019, primarily due to the advanced completion of activities on the European EPC
loss contracts in the prior year as well as new anticipated projects and parts
orders being deferred due to COVID-19 and the divestiture of Loibl, a materials
handling business in Germany that generated revenues of approximately $14.3
million in 2019, partially offset by a higher level of activities on two
operations and maintenance contracts in the U.K. which followed the turnover of
the EPC loss contracts to the customers. Adjusted EBITDA improved to $25.0
million compared to $1.6 million in the prior year, primarily due to the loss
recovery of $26.0 million recognized in 2020 under an October 10, 2020
settlement agreement with an insurer in connection with five of the six European
EPC loss contracts, as well as lower costs related to the loss contracts. In
2020, the segment recorded $3.7 million in net losses as compared to $6.9
million of equivalent losses recorded in 2019, inclusive of warranty expense.
The Adjusted EBITDA improvement was also partially offset by the divestiture
of Loibl and lower volume, as described above. The segment adjusted gross profit
was $58.8 million in 2020, an improvement of $28.8 million compared to $30.0
million in 2019.
Babcock & Wilcox Environmental segment revenues
were $108.0 million in 2020, a decrease of 60.8% compared to $275.6 million in
2019, primarily due to the completion of large construction projects in 2019 and
a lower level of activity due to the postponement of new projects by several
customers as a result of COVID-19. Adjusted EBITDA declined to $3.5 million
compared to $12.5 million in the prior year, primarily attributable to the
impacts of lower volume, partially offset by a lower percentage of overhead
being allocated to the segment. Adjusted gross profit was $23.5 million in 2020,
compared to $48.4 million in the prior year. On December 31, 2020, the B&W
Environmental segment had two significant loss contracts, with net losses of
$1.3 million and $5.6 million in 2020 and 2019, respectively. As of December 31,
2020, the first contract was approximately 100% complete with only warranty
obligations remaining and the second contract was approximately 99% complete
with final completion expected in the first quarter of 2021.
Babcock & Wilcox Thermal segment revenues
were $305.0 million in 2020, a decrease of 25.6% compared to $409.7 million in
the prior year, primarily due to the adverse impacts of COVID-19 resulting in
lower parts, construction, package boilers and international service orders, as
well as the completion of large construction projects in the prior year.
Adjusted EBITDA in 2020 declined to $35.4 million compared to $51.4 million in
the prior year, primarily due to lower volume and a higher percentage of
overhead being allocated to the segment that was previously allocated to other
segments, partially offset by favorable product mix and a full period of cost
savings, and restructuring initiatives benefiting 2020; adjusted EBITDA margin
was 11.6% for the year compared to 12.5% in 2019. Gross profit margin in the
segment was 29.9% in 2020, compared to 22.3% in the prior year; adjusted gross
profit in the segment in 2020 was $91.2 million, which was flat compared to the
prior year primarily due to favorable product mix and the effects of a full
period of cost savings and restructuring initiatives benefiting 2020, offset by
lower volume.
COVID-19 Impact - The
global COVID-19 pandemic has disrupted business operations, trade, commerce,
financial and credit markets, and daily life throughout the world. The company's
business has been, and continues to be, adversely impacted by the measures taken
and restrictions imposed in the countries in which it operates and by local
governments and others to control the spread of this virus. These measures and
restrictions have varied widely and have been subject to significant changes
from time to time depending on the changes in the severity of the virus in these
countries and localities. These restrictions, including travel and curtailment
of other activity, negatively impact the company's ability to conduct business.
The volatility and variability of the virus has limited the company's ability to
forecast the impact of the virus on its customers and its business.
The continuing resurgence of COVID-19, including at least one new strain
thereof, has resulted in the reimposition of certain restrictions and may lead
to other restrictions being implemented in response to efforts to reduce the
spread of the virus. These varying and changing events have caused many of the
projects the company had anticipated would begin in 2020 to be delayed into 2021
and beyond. Many customers and projects require B&W's employees to travel to
customer and project worksites. Certain customers and significant projects are
located in areas where travel restrictions have been imposed, certain customers
have closed or reduced on-site activities, and timelines for completion of
certain projects have, as noted above, been extended into 2021 and beyond.
Additionally, out of concern for the company's employees, even where
restrictions permit employees to return to its offices and worksites, the
company has incurred additional costs to protect its employees as well as
advising those who are uncomfortable returning to worksites due to the pandemic
that they are not required to do so for an indefinite period of time.
The resulting uncertainty concerning, among other things, the spread and
economic impact of the virus has also caused significant volatility and, at
times, illiquidity in global equity and credit markets. The full extent of the
COVID-19 impact on the company's operational and financial performance will
depend on future developments, including the ultimate duration and spread of the
pandemic and related actions taken by the U.S. government, state and local
government officials, and international governments to prevent disease spread,
as well as the availability and effectiveness of COVID-19 vaccinations in the
U.S. and abroad, all of which are uncertain, out of the company's control, and
cannot be predicted.
Hillenbrand Completes
Sale of Abel Pumps to IDEX Corporation
Hillenbrand, Inc.
announced that it has completed the sale of Abel Pumps, L.P., and
certain of its affiliates (ABEL) to IDEX Corporation. The sale
closed in accordance with the terms of the Share and Interest Purchase and
Transfer Agreement with IDEX that was announced on January 11, 2021, resulting
in cash proceeds to Hillenbrand of approximately $103.5 million.
"The ABEL divestiture is an important step in our strategy to streamline our
portfolio, increase financial flexibility, and accelerate growth," said Joe
Raver, President and CEO of Hillenbrand. "The completion of the ABEL sale will
help drive shareholder value and strengthen our key business platforms."
Consistent with its current capital allocation priorities, Hillenbrand intends
to use proceeds from the sale to reduce leverage and reinvest in organic growth
opportunities.
IEA
Predicts Solar
Will Overtake Coal in Indian Power Generation
Prior to the global pandemic, India’s energy demand was projected to increase by
almost 50% between 2019 and 2030, but growth over this period is now closer to
35% in the STEPS, and 25% in the Delayed Recovery Scenario. The
latter would put some of India’s hard-won gains in the fight against energy
poverty at risk, as lower-income households are forced to fall back on more
polluting and inefficient sources of energy. It would also extend the slump in
energy investment, which we estimate to have fallen by some 15% in India in
2020. Even though the pandemic and its aftermath could temporarily suppress
emissions, as coal and oil bear the brunt of the reduction in demand, it does
not move India any closer to its long-term sustainable development goals.
Covid-19 will leave lasting scars
An expanding economy, population, urbanization, and industrialization mean that
India sees the largest increase in energy demand of any country, across all of
our scenarios to 2040. India’s
economic growth has historically been driven mainly by the services sector
rather than the more energy-intensive industrial sector, and the rate at which
India has urbanized has also been slower than in other comparable countries. But
even at a relatively modest assumed urbanization rate, India’s sheer size means
that 270 million people are still set to be added to India’s urban population
over the next two decades. This leads to rapid growth in the building stock and
other infrastructure. The resulting surge in demand for a range of construction
materials, notably steel and cement, highlights the pivot in global
manufacturing towards India. In the STEPS, as India develops and modernizes, its
rate of energy demand growth is three times the global average.
India’s size and dynamism will keep it at the heart of the global energy system
Solar power is set for explosive growth in India, matching coal’s share in the
Indian power generation mix within two decades in the STEPS – or even sooner in
the Sustainable Development Scenario. As
things stand, solar accounts for less than 4% of India’s electricity generation,
and coal close to 70%. By 2040, they converge in the low 30%s in the STEPS, and
this switch is even more rapid in other scenarios. This dramatic turnaround is
driven by India’s policy ambitions, notably the target to reach 450 GW of
renewable capacity by 2030, and the extraordinary cost-competitiveness of solar,
which out-competes existing coal-fired
power by 2030 even when paired with battery storage. The rise of utility-scale
renewable projects is underpinned by some innovative regulatory approaches that
encourage pairing solar with other generation technologies, and with storage, to
offer “round the clock” supply. Keeping up momentum behind investments in
renewables also means tackling risks relating to delayed payments to generators,
land acquisition, and regulatory and contract uncertainty. However, the
projections in the STEPS do not come close to exhausting the scope for solar to
meet India’s energy needs, especially for other applications such as rooftop
solar, solar thermal heating, and water pumps.
Coal’s hold over India’s power sector is loosening, with industry accounting for
most of the increase in coal demand to 2040 in the STEPS.
Once the coal-fired power plants currently under construction are completed over
the next few years, there is no net growth at all in India’s coal fleet.
Coal-fired generation was most exposed to the dip in electricity consumption in
2020. It picks up slightly in the STEPS as demand recovers since renewables do
not cover all of the projected increase in electricity demand. However, coal
suppliers looking for growth increasingly have to turn to India’s industrial
consumers rather than the power sector. The share of coal in the overall energy
mix steadily declines in the STEPS, from 44% in 2019 to 34% in 2040, and more
rapidly in other scenarios.
FGD and DeNOx Newsletter No. 515