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Air, water, and combustion (AWC) product purchases for a wind or solar plant are small compared to those for a coal plant. Since the projected capacity for wind and solar is large and the projected capacity increases for coal and nuclear plants are modest, it seems logical that the power AWC markets will be unattractive compared to other markets.

There are two reasons why the market will be attractive. The first is that it is a very large market presently. The second is that the net zero CO2 initiative will require technologies with higher AWC expenditures than present coal plants.

The International Energy Agency has set up a scenario to reach net zero CO2 emissions by 2050.

McIlvaine has its own scenario with a higher reliance on biomass with carbon capture and sequestration ( BECCS).

The McIlvaine scenario would also end up with net zero CO2 in 2050 but with a different combination of fuels.

BECCS has twice the CO2 reduction impact of nuclear due to removal of CO2 from the air prior to burning and sequestration. Solar and wind have a smaller impact on a net CO2 reduction basis per GW due to their lower capacity factors.

Differences Between IEA and McIlvaine Forecasts
Fuel	McIlvaine/IEA difference GW	Net impact on CO2 in equivalent coal GW
Bioenergy with CCS	800	1600
Nuclear	-100	-100
bioenergy	-200	-200
Solar	-2400	-700
Wind	1500	-600
Net		0

The technologies to provide high capacity factor electricity such as nuclear, coal, BECCS, hydrogen and geothermal require lots of AWC Products. This is illustrated on a comparison per kW.

Revenues for AWC Products
Power Technology	AWC Relative Revenues/kWh
Coal	1
BECCS	2.5
Nuclear	1.2
Hydro	0.3
Hydrogen	2.5
Wind	0.02
Combined Cycle	0.5
Geothermal	0.7
Solar	0.01

Markets and projects involving power plant AWC are covered in detail in McIlvaine publications.

The Utility Tracking System provides weekly project coverage along with profiles of thousands of AWC purchasers.

There are market forecasts for instrumentation, pumps, valves, FGD, SCR, cross flow membranes, liquid microfiltration, fabric filters, precipitators, fans, and compressors described under www.mcilvainecompany.com and then markets at the top of the page.

British Columbia is arguably the largest supplier of wood pellets for biomass combustion. It has required air pollution controls on all plants to control dryer and other emissions.

There are five main types of air pollution control systems applied to control the emissions from the pellet operations:
a. Centrifugal collectors or Cyclones —used either alone or to pre-clean a gas stream that is subsequently passed through a WESP, scrubber or baghouse.
b. Electrostatic precipitators (Wet ESPs–(WESP) rather than dry ESP are used for wood dyers or other processes that
generate higher condensable organic emissions.
c. Fabric filters or baghouses
d. Scrubbers
e. VOC combustors (e.g., regenerative thermal oxidizers –RTO) if the volatile components are of sufficient strength.

Due to the initial capital investment required in high voltage rectifier sets for ESPs and the water treatment system required for WESPs, these technologies are generally only used in larger systems. For example, in North America, ESPs are usually not used on combustors that have outputs of less than 3 MW. In the case of pellet dryers, WESP are generally not employed on pellet plants with an output of less than 100,000 t/yr [PAB 2009]. Although there is no direct correlation between a 3 MW combustor and a 100.000 t/yr pellet plant, the above statement serves to give an indication of the scale of operation where these technologies are employed.

In the US, WESPs have been installed in new pellet plants to pre-clean dryer flue gas for subsequent VOC reduction in regenerative thermal oxidizers (RTO). In recent installations of WESPs on pellet mill dryers, the suppliers have guaranteed filterable PM concentrations of 19 to 20 mg/m³. They have, however, avoided guaranteeing CPM/VOC emissions (at least in BC) as these are so dependent on the operation of the dryer and the raw material used. By itself (without a thermal oxidizer), WESPs can be expected to reduce VOC emissions somewhat, depending on the polarity of the compounds, and is estimated to achieve about a 50% reduction of organic (and odorous) substances, such as formaldehyde and terpene.

Various types of fabric filters or baghouses have been successfully used for particulate control. With the correct design and choice of fabric, particulate control efficiencies of over 99% can be achieved even for very small particles (1 micrometer or less). The lowest emission rate for large wood-fired boilers controlled by fabric filters reported in the RBLC database is ~10 mg/m3 (0.01 lb./MMBTU). This is consistent with expected control efficiencies of close to 98% and is supported by tests on BC units. Because of their design (large surface area of bags and longer residence times), fabric filters may capture a higher fraction of ultrafine particles than ESPs. Cleaning intensity and frequency are important because the build-up of a dust cake is significant in improving the ability of the fabric to capture fine particulate (i.e., cleaning and removal of the dust cake can temporarily reduce the gas cleaning efficiency). Baghouses are not applicable to streams, such as dryer exhaust gases since high moisture content and organic compounds can condense on and plug the bags. They are, however, applicable for the dryer dust from pellet mill screens, and post dryer hammermills, and as an addon to the cyclone separators used on material air conveying systems transporting the finer dryer wood dust. Operating experience with baghouses at pellet mills indicates that there is a fire risk, due to the presence of unburned wood dust or CPM. Such fires have already happened in the BC pellet industry. Additional measures are therefore sometimes required, such as using a cyclone or multicyclone to pre-treat the gas, or “fire eyes” (spark detectors) and water sprays. In pellet mills, the collected dust is often used as dryer fuel in suspension type burners.

Regenerative thermal oxidizers are used to control VOC emissions, including CPM, and are currently being prescribed for some very large U.S. pellet plants. Formaldehyde is one of the hazardous air pollutants emanating from wood dryers requiring control in the U.S. as a result of the ”New Source Review” requirements for toxic air pollutants. The U.S. Federal maximum achievable control technology (MACT) applies when a source emits more than 25 tons of VOCs per year. Individual States can set more stringent limits. For example, in Washington State, facilities must reduce formaldehyde emissions if they emit more than 32 lb./year. Since the early 1990s, thermal oxidizers have been in use in the U.S. to control emissions from wood dryers in the panelboard industry.

Andritz to Supply 10th High-Efficiency Powerfluid Circulating Fluidized Bed Boiler to Japan

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 Niigata East Port in Niigata Prefecture, Honshu Island, some 300 km north of Tokyo, Japan. Commercial operations are scheduled to begin in September 2024.

The Andritz PowerFluid (CFB) boiler with reheating system to be supplied 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 MW_el of power.

Drax has called for businesses of all sizes to join the UK’s first BECCS supplier engagement program. The new program of nationwide events will encourage British businesses to work with the renewable energy pioneer to deliver its multi-billion-pound climate-saving negative emissions technology - bioenergy with carbon capture and storage (BECCS).

The company will be hosting a series of nationwide events throughout 2022 in partnership with the West & North Yorkshire and Hull & Humber Chambers of Commerce, as well as further events across the wider North, Midlands and South of England. These will enable Drax to identify a robust supply chain for BECCS, ensuring the project can be accelerated as soon as planning approval is received.

The launch comes as Drax prepares to start a major public consultation on its BECCS plans in November, offering stakeholders and communities the chance to learn more about the project.

The event series was to start with an introductory webinar on Thursday September 23, 2021, run with business support organization NOF. The initial event will give new and prospective suppliers the opportunity to learn more about the BECCS Program.

Emissions Data Now Available Online for Covanta Waste-to-Energy Facility in Alexandria, Virginia

Covanta announced that emissions data for its Alexandria, Virginia Waste-to-Energy facility, known as Covanta Alexandria, is now available to the public online. This is the very same data that operators at the Waste-to-Energy facility see to monitor operational performance, and now residents have a virtual seat in the control room to experience the science behind sustainable waste management.

"Providing this emissions data to the public will give Alexandrians a deeper understanding of the day-to-day work of the Waste-to-Energy facility and its role in many efforts by the City of Alexandria in reaching our Environmental Action Plan 2040 goals," said Alexandria Major Justin Wilson. "It is another opportunity for our residents to be involved, informed and active in our work to achieve sustainability."

"This is an important step forward on data and transparency as we work to realize Arlington’s environmental sustainability goals," said County Board Chair Matt de Ferranti. "Reducing waste and greenhouse gas emissions are at the core of our Community Energy and Solid Waste Management Plans. We want to thank our Waste-to-Energy provider, Covanta, for this step forward on transparency in releasing this data to the public."

Continuous emissions monitoring is an important tool in determining a Waste-to-Energy facility's compliance with the strict emission limits set forth in its operating permit, which is established in accordance with the federal Clean Air Act and Virginia's strict regulatory requirements. Covanta Alexandria produces enough energy to power 16,000 homes per year and operates below the established permit's emission limits.

"Covanta is proud to be an integral part of the community. It is with this sentiment that we have posted the data on our webpage for residents to view 365 days a year, 24 hours a day, seven days a week. There is no regulatory requirement for us to release this information; we're doing it because we believe it is important to be transparent to the communities we serve," continued Don Cammarata, area asset manager at Covanta.

Covanta Alexandria serves the approximately 400,000 residents of the County of Arlington and City of Alexandria with reliable and sustainable waste management. In total, the facility processes more than 350,000 tons of waste annually, which is equivalent to avoiding 308,000 tons of greenhouse gases by keeping waste out of landfills.

Donaldson Company Reports Fiscal 2021 Sales Increased to a Record $2.854 billion: Q4’21 Sales Rose 25.2% Versus Q4’20

Donaldson Company, Inc. reported fiscal 2021 generally accepted accounting principles (GAAP) net earnings of $84.3 million in the fourth quarter and $286.9 million for the full year, compared with $64.2 million and $257.0 million, respectively, in fiscal 2020. Fiscal 2021 GAAP earnings per share were $0.66 in the fourth quarter and $2.24 for the full year, compared with $0.50 and $2.00, respectively, in fiscal 2020. Excluding the impact of restructuring charges in the second quarter, full-year fiscal 2021 adjusted EPS were $2.32.

“We achieved record sales and earnings in fiscal 2021, and I am proud of the way Donaldson employees came together to generate strong results while navigating supply chain complexities and continued pressure from COVID-19,” said Tod Carpenter, chairman, president and chief executive officer. “In the past year, we drove year-over-year growth in gross margin, leveraged our expenses while making further investments in strategic growth initiatives, generated strong cash conversion, and returned $249 million to stockholders through dividends and share repurchases. Our results reflect our focus on strong execution, and I want to thank our employees for putting us in an excellent position for continued success in 2022.

“Our fiscal 2022 forecast implies another year of new records for both sales and profit, and we are acting quickly to address the challenges of today’s operating environment. We are leveraging our global production footprint and strong relationships to mitigate the impact from supplier availability issues, and we raised prices to mitigate the historically high headwind on gross margin from raw materials inflation. Additionally, we will continue to invest in our long-term opportunities by further expanding our technologies and solutions, extending our market access, and pursuing thoughtful acquisitions, particularly in Life Sciences. We again demonstrated we have the right strategy and the right team to achieve our strategic and financial goals as we drive towards our purpose of Advancing Filtration for a Cleaner World.”

Fourth quarter 2021 sales increased 25.2 percent to $773.1 million from $617.4 million in 2020. Currency translation favorably impacted sales by approximately 4 percent in total and in both the Engine Products (Engine) and Industrial Products (Industrial) segments.

Fourth quarter 2021 Industrial sales increased 19.5 percent, driven primarily by growth in Industrial Filtration Solutions (IFS). Sales for dust collection replacement parts continued to experience strong growth, and new equipment sales also increased as market conditions improved. Process Filtration sales were up double-digits due to strong growth in both first-fit and replacement parts. The Gas Turbine Systems (GTS) sales decline reflects lower sales of first-fit products for small turbines and a more modest decline in sales of replacement parts. The Special Applications sales increase was driven by double-digit growth in the Disk Drive business.

Fourth quarter 2021 gross margin increased to 34.4 percent from 33.7 percent in 2020. Gross margin improvement was primarily driven by strong volume leverage and pricing benefits, partially offset by higher raw material costs and unfavorable mix.

Fourth quarter 2021 operating expenses as a percent of sales decreased by 40 basis points to 19.9 percent from 20.3 percent in 2020 primarily due to volume leverage, partially offset by higher incentive compensation expense. Operating income as a rate of sales (operating margin) increased to 14.5 percent from 13.4 percent in 2020.

Fourth quarter 2021 interest expense was $3.1 million, compared with $3.9 million in 2020; the decrease of $0.8 million primarily reflects a lower debt level. Other income was $5.0 million in fourth quarter 2021, an increase from $2.7 million in 2020, primarily driven by a tax-related settlement in Brazil. Fourth quarter 2021 effective tax rate increased to 26.0 percent from 21.1 percent in 2020, primarily due to a reduction in net discrete tax benefits.

Donaldson paid fourth quarter 2021 dividends of $27.6 million and repurchased approximately 0.8 percent of its outstanding shares for $63.5 million. For the full fiscal year, Donaldson repurchased 1.9 percent of its outstanding shares for $142.2 million.

Donaldson expects fiscal 2022 GAAP EPS between $2.50 and $2.66, compared with 2021 GAAP and adjusted EPS of $2.24 and $2.32, respectively. Compared with fiscal 2021, 2022 net sales are projected to increase between 5 percent and 10 percent. Currency translation is not expected to have a material impact on sales.

Industrial sales are projected to increase between 6 percent and 11 percent, compared with fiscal 2021, reflecting low double-digit growth in IFS, led by Industrial Air Filtration and Process Filtration, and high single-digit growth in GTS. Special Applications sales are expected to decline in the low single-digit range, primarily driven by expected declines in disk drive filter sales, partially offset by an increase in Integrated Venting Solutions.

Fiscal 2022 gross margin is expected to be flat to down slightly compared to 2021, primarily due to increased raw material costs. The first half of fiscal 2022 is expected to experience more significant gross margin pressure than the second half due to the timing of pricing actions and the comparison to favorable raw material costs in the first half of 2021.

Donaldson expects fiscal 2022 operating margin between 14.1 percent and 14.7 percent, compared with GAAP and adjusted operating margin of 13.5 percent and 14.0 percent, respectively, in 2021. The year-over-year improvement is expected to come primarily from operating expense leverage.

The Company expects fiscal 2022 interest expense of approximately $14.0 million, and other income is forecast between $7.0 million and $11.0 million. Donaldson’s fiscal 2022 effective income tax rate is forecast to be between 24 percent and 26 percent.

The Company expects fiscal 2022 capital expenditures between $100.0 million and $120.0 million, and free cash flow conversion is forecast to be between 80 percent and 90 percent. Donaldson expects to repurchase approximately 2 percent of its outstanding shares during fiscal 2022.

In the second quarter of fiscal 2021, the Company initiated activities to further improve its operating and manufacturing cost structure, primarily in its EMEA region. These activities resulted in the Company incurring restructuring expenses, including $14.8 million in severance during the second quarter of fiscal 2021. Expenses of $5.8 million were included in cost of sales, and $9.0 million were included in operating expenses on the Consolidated Statement of Earnings for the year ended July 31, 2021. Expenses of $2.5 million relate to the Engine Products segment, $6.5 million relate to the Industrial Products segment, and $5.8 million were included in Corporate and unallocated. The Company expects approximately $8 million in annualized savings from these restructuring activities once completed by the beginning of the third quarter of fiscal 2022

Pentair plc announced that it has entered into a definitive agreement to acquire Pleatco, a manufacturer of water filtration and clean air technologies for pool, spa and industrial air customers. Pleatco is a current portfolio company of Align Capital Partners, a private equity firm with investment teams in Dallas, TX and Cleveland, OH.

The planned acquisition of Pleatco provides Pentair an expanded range of replacement filter products to be sold through Pentair’s existing Pool and Spa distribution channels as well as through Pleatco’s distribution channels.

The planned acquisition also expands Pentair’s Industrial Filtration portfolio, with complementary air filtration products to serve the needs of its industrial customers.

Total consideration for the transaction is approximately $255 million in cash, subject to customary adjustments. Pentair expects Pleatco to generate approximately $95 million of annual revenue in 2021. The transaction is expected to be accretive in its first full year.

Freudenberg is expanding its filter business strategically. In the United States, the Freudenberg business group Filtration Technologies is acquiring Protect Plus Air Holding, Inc. from its current owner, the Indianapolis-based private equity firm HKW. Based in Hickory, North Carolina, Protect Plus Air is a leading producer of high-quality air filters that are mainly sold through retailers for residential buildings. The company has 940 employees and generated $118 million in revenue in 2020. The parties have agreed not to disclose the purchase price.