UTILITY E-ALERT 1165

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The Environmental Protection Agency (EPA) is taking final action to approve revisions to the Oklahoma State Implementation Plan (SIP), submitted by the Oklahoma Department of Environmental Quality (ODEQ) to EPA on June 20, 2013, which address revised Best Available Retrofit Technology (BART) requirements for SO2 and NOx for Units 3 and 4 of the American Electric Power/Public Service Company of Oklahoma (AEP/PSO) Northeastern Power Station in Rogers County, Oklahoma. The revisions also address the requirements of the Clean Air Act (CAA) concerning non-interference with programs to protect visibility in other states.

The North Carolina Department of Environment and Natural Resources announced Monday that five more Duke Energy power plants had been issued formal notices of violation for not having the needed permits, which are required to legally discharge rainwater draining from its plants into public waterways. The five new violations are against Belews Creek Steam Station in Rockingham County, Cliffside Steam Station in Rutherford County, Lee Steam Electric Plant in Wayne County, Roxboro Steam Electric Power Plant in Person County and Sutton Steam Electric Plant in New Hanover County.

Two other violations were issued Friday against the Dan River Steam Station in Eden, site of the February 2 spill. State regulators indicated they had been aware since at least 2011 that some Duke facilities lacked the required storm water permits, yet took no enforcement action until after last month's disaster. The violations were issued three days after The Associated Press filed a public records request for a copy of Duke's storm water permit for the Dan River plant. The agency responded that no such permit existed. State regulators also expressed concern Friday about potentially contaminated water trickling from a storm-water pipe at the Cliffside plant. That pipe drains an emergency storm water basin built on top of an old coal-ash dump, but is only supposed to drain water in severe storms. State officials said the corrugated metal pipe is heavily corroded and taking in groundwater, which is draining out at a rate of more than 1,100 gallons a day into rocks a few feet from the Broad River. Duke has 30 days to respond to the state on why the company feels the violations may be in error or why it should not be fined.

The Arkansas River Power Authority (ARPA) on February 28 filed suit against Babcock & Wilcox Power Generation Group alleging B&W supplied a coal-fired boiler that never met its emissions guarantees. ARPA said in the lawsuit that, because B&W failed to deliver a fully functioning boiler, they have been unable to operate the power plant and incurred substantial losses in the millions of dollars, including money spent to resolve operating deficiencies per B&W’s modifications to the boiler, fines and penalties paid to regulators for exceeding emissions and legal fees spent for environmental litigation. “ARPA has $150 million of outstanding debt on a power plant that can’t operate because of B&W’s failure,” said Robert Freidenberger, ARPA’s board president. “The ARPA Board of Directors feel that B&W must be held accountable for its actions and the damage it has caused the ARPA members.”

Novinda announced last week that it has been awarded three additional long term contracts by Midwestern and Western utilities to supply Amended Silicates HgX (AS-Hg-X) for the removal of mercury from 10 coal-fired power plants. Designed specifically to address and exceed the mercury removal rates of MATS, Novinda’s Amended Silicates products have delivered sustained performance in full-scale tests at more than 35 power plants. AS-HgX has proven to be extremely effective, as well as cost competitive, removing mercury with two to three times the efficiency of the market’s standard mercury removal products.

Two More Thermal Power Projects planned in Karnataka, India

The United Progressive Alliance government is expected to provide coal linkage to various power projects; the State is planning to set up two new thermal power plants to address the increasing demand for power in the coming years. Minister for Energy D.K. Shivakumar said the government was trying to identify land to set up the proposed power plants. “We have a list of land available in various regions from the Karnataka Industrial Areas Development Board. We are looking at feasibility in terms of availability of both water and land,” he said. “We are trying to use this opportunity to set up the new power plants to increase the State’s installed power capacity,” he said. The Minister said that the Union government had directed Coal India to allot coal on a preferential basis for the third generating unit of the Bellary Thermal Power Station with a capacity of 800 MW. The Ministry of Power has also recommended to the Coal Ministry that coal linkage be provided for the second generating unit at the Yermarus thermal power plant. With this, both these plants would be set up within the deadline, he noted.

RWE and Essent are building a new power plant with a capacity of 1600 MW (two coal-fired units to generate 800 MW each) in Eemshaven, Groningen. Two ultra supercritical boilers will be installed for firing fuel. The flue gases will be filtered and purified in a flue gas purification unit, to be supplied by Hitachi Power Systems Europe. Contractors involved are Alstom, KSB Aktiengesellschaft, Consult IKS Energy Dept. of Hochtief, Imtech Deutschland with Imtech Nederland, Bilfinger Berger Power Services.

A few years ago the Dutch government designated the Maasvlakte and the area around the Eemshaven as sites for new power plants. Partly because of the presence of a port for importing fuel and the availability of sufficient cooling water, RWE accepted an invitation from the Dutch government and made the decision years ago to build an ultramodern coal-/biomass-fired power plant in Eemshaven. The power plant is expected to be ready for operation later in 2014

ANC Dubai to set up Two 660 MW Coal-fired Power Plants at Gaddani

An MoU was signed between Private Power and Infrastructure Board (PPIB), Ministry of Water & Power & Arab National Construction (ANC) Holding LLC Dubai for construction of two 660 MW (1,320 MW) coal-fired power plants at Pakistan Power Park in Gaddani. The company will also construct a jetty along with the construction of the power projects. The project would bring in approximately US $ 2.5 billion dollars investment in Pakistan and will be completed in three years.

Currently, there are plans to construct at least three new natural gas-fired power plants in Ohio, because of Ohio’s natural gas from the Utica Shale.

In Carroll County, Carroll County Energy LLC plans to build an $800 million, 700 MW natural gas-fired power plant. The plant is scheduled to be in operation by May 2017.

The EPA has awarded a pollution permit to a new power plant southeast of San Diego, clearing the way for construction. In documents made public Tuesday, the EPA found "air pollution emissions from the Project will not cause or contribute to violations of any National Ambient Air Quality Standards (NAAQS)." The permit for the Pio Pico Energy Center is designed to ensure the plant's natural gas turbines do not significantly degrade air quality in the area. The plant will be located in an industrial zone, though not far from a juvenile detention center and residential neighborhoods in Mexico flanking the U.S. border. Environmental groups objected to the plant location, asserting that the area's air already is fouled by a busy cross-border trucking route and the adjacent Otay Mesa Energy Center, an even larger gas-fired power plant owned and operated by Calpine.

The amount of emissions generated by Pio Pico will depend upon the region's evolving energy needs. Its quick-start generators can fill in sudden gaps in solar and wind energy production, but are far less efficient that the adjacent "combined cycle" power plant that uses excess heat to drive steam turbines and generate additional power. Pio Pico Energy Center was developed and financed by the private equity Energy Investors Funds, or EIF, which bundles power plant projects for third-party investors.

Williams Partners’ Transco is working on two projects to increase natural gas supply to Brooklyn and Queens. The Transco pipeline, a major supplier of natural gas to New York City, is the nation’s largest-volume interstate natural gas pipeline system. The two projects, the Rockaway Lateral and Northeast Connector, are among some $5 billion investments that Williams Partners will make to meet the growing demand. The Federal Energy Regulatory Commission (FERC) on February 28 published its final environmental review of Transco’s Rockaway Lateral and Northeast Connector expansions. Construction is expected to begin in May and begin operations in November.

Alstom is in the process of installing GT13E2 gas turbines at the Nizhneturinskaya thermal power plant in Russia. The company had signed a frame agreement with Renova Group in 2011 for the supply of five GT13E2 gas turbines of 180 MW each to IES-Holding for use in Nizhneturinskaya, Novogorkovskaya, and Akademicheskaya TPPs. Valued at over $618 million, the IES's project entails construction of two combined-cycle power plants, with a total capacity of 460 MW. Startup is scheduled for December 2015.

Asiatech Energy (Singapore) announced it secured funding to build a gas-fired power plant in the Mon State capital Moulmein. The company released a statement in Naypyidaw saying that it signed a financing agreement with Singapore’s United Overseas Bank (UOB) allowing it to begin work on the 230 MW project, although the firm failed to disclose how much funding it had secured. Asiatech Energy said the plant would initially be able to produce 43 MW later this year, adding that its construction is expected to be completed by late 2015, when it would be able to supply energy to five million people. The gas-fired power plant will reportedly cost about $170 million to construct. Asiatech Energy will work with Myanmar Lighting Co Ltd, which will own the plant, and Myanmar Electrical Enterprise, which will distribute its energy.

Shell UK Ltd. has let a front-end engineering and design contract to Technip SA for the onshore elements of the Peterhead Gas Carbon Capture and Storage (CCS) demonstration project in Aberdeenshire, Scotland. The project is designed to capture, compress, and transport by pipeline one million tonnes/year of carbon dioxide to an offshore gas reservoir for long-term storage beneath the North Sea. The FEED scope includes a grassroots carbon capture and compression plant and modifications to an existing combined cycle gas turbine power plant. The Peterhead CCS project was chosen in 2013 as one of two CCS demonstration projects to progress to the next stage of the UK government’s Department of Energy and Climate Change CCS competition. Shell is developing the Peterhead CCS project with strategic support from SSE Generation Ltd., owner and operator of the Peterhead Power Station.

Officials from the Nuclear Power Corporation of India (NPCIL) (Mumbai) and Rosatom (Moscow), Russia's state-owned nuclear agency, have been holding talks in Mumbai with a view to signing contracts for the third and fourth reactors for the Kudankulam nuclear power plant. The parties hope to sign the agreement before national elections are held. Negotiations have been deadlocked for months over a penal law, which covers responsibilities over nuclear accidents. The chief of Rosatom was in Delhi last week for a few hours to hold negotiations on the issue.

Russia and the U.S. are concerned about India's nuclear liability law. The law makes suppliers of nuclear fuel and related equipment liable in case of a nuclear plant accident. Differences over this issue prevented the signing of contracts in the last moments of Prime Minister Manmohan Singh's visit to Moscow in October 2013. A great deal is at stake, now and in the future for both sides, as they work to reach a compromise. If the deal is signed, it will expand Rosatom's presence in the Kudankulam project as decided in 2010, when Russia and India signed a roadmap, which included the construction of up to 16 nuclear power projects in India.

The Russians already have set up two 1,000 MW reactors at Kudankulam, and NPCIL is developing the power generation output, with the first unit due to begin commercial operations in April and the second by December. Commercial operation of the two units was delayed by protests from non-governmental organizations (NGOs). Russia could supply four more reactors to the project, making a total of eight.

Rosatom is considering India's offer for insurance coverage through its state-owned General Insurance Corporation (GIC). This would allow suppliers to know exactly how much they would be liable to pay in the event of a nuclear accident, but could still approach any other insurance company, including a Russian one. GIC would offer insurance rates for different components of the Russian reactors. This could increase the cost of the reactors. But if there were no insurance claims, the Russian suppliers would have their money returned at the end of the insurance period.

Nuclear waste at the Waste Isolation Pilot Plant (WIPP) in New Mexico must be stored above ground until the facility is reopened. The New Mexico Environment Department issued the administrative order on March 4 that the waste must be stored above ground for 30 to 60 days at times, and allows some of the drums to be stored for an additional 45 to 105 days under certain circumstances. Much of the waste comes from the Los Alamos National Laboratory. Officials also said the site cannot accept any off-site generated waste until normal operations resume. The department must also receive weekly reports on actions taken at the facility during a February 5 salt truck fire that happened in the underground area as well as the radiological event.

On February 14, a continuous air monitor detected airborne radiation in an underground storage area on site. The U.S. Department of Energy, which operates the site, said there were no employees underground at the time the monitors went off and the ventilation system automatically began to filter the air. DOE later reported that 13 employees were exposed to the radiation, but follow up tests showed exposure levels were extremely low. The source of the leak is still unknown. The state Environment Department will determine when the plant can reopen.

Foster Wheeler AG announced Tuesday that a subsidiary of its Global Power Group has been awarded a contract by Shanghai Marine Diesel Engine Research Institute (SMDERI) for the design and supply of two grate boilers for Fatima Energy Limited, a subsidiary of Fatima Group. The new 120 MWe co-generation power plant will be located at the Fatima sugar mill in Savawan, Pakistan. The grate units can efficiently transform waste and by-product materials into steam and power.

Last Friday, MET Group, part of MOL, bought a minority stake in the Dunamenti Power Plant from GDF Suez. The sales of further packages are in progress too. The parties will conduct further talks on the 50.3 percent package held by Electrabel S.A., another GDF Group member.

Tanzania’s energy regulator said it’s considering expressions of interest by two companies to each build a 200 MW gas-fired power plant that will help reduce an energy deficit in the East African nation. BS Ltd. (BSTL), based in Hyderabad, India, and Kamal Steel Ltd., a Tanzanian metal manufacturer, may build plants at Bagamoyo, about 60 kilometers (37 miles) northwest of the commercial capital, Dar es Salaam, Energy and Water Utilities Regulatory Authority Director-General Felix Ngamlagosi said in a February 28 interview. The companies are among “several other companies that are interested in developing small power projects,” he said. Tanzania, East Africa’s second-biggest economy, plans to more than double electricity production over the next four years by building at least four power plants including the 600 MW, coal-fired Mchuchuma facility, according to the regulator.

A new concern is that Ukraine will be dominated by Russia in part due to lack of EU intervention due to gas supply threats. Thirty percent of European gas is supplied by Russia at an attractive $9.8/MMBtu. The alternative is to pay $17/MMBtu from other sources as do Japan and Korea.

There is a way for the U.S. to provide more of this gas while boosting the economy and best of all greatly reducing environmental emissions. By upgrading existing coal-fired power plants from subcritical to supercritical efficiency, the U.S. would increase electricity production by 40,000 MW while reducing equivalent tons of CO₂ by over five billion tons/year.

The U.S. can supply more of the world’s energy needs over the next several decades. Liquid fuels and LNG can be shipped to Europe and elsewhere. The price of natural gas in the U.S. is presently half that of that paid by the EU and one-third of that paid by Asian nations. The modest cost to convert gas-to-LNG or liquid fuels and ship it to Europe makes this option economically viable at current price differentials. So, the question becomes: Could the U.S. meet its own gas needs and some of Europe’s? U.S. shale gas is a very big resource, but it has limits. Therefore, EIA forecasts that coal use in the U.S. will remain at 2013 levels through 2040. The present plan is to continue to operate the old power plants and not build any new power plants.

There is a novel approach which will meet the planned environmental goals in the U.S. while still helping to provide energy security to Europe. The approach is to upgrade the old inefficient coal-fired power plants to supercritical efficiency. It would be possible to keep CO₂ emissions at the same level as under the present plan but to reduce total environmental emissions. At the same time, there would be a huge stimulus to the U.S. economy. Investment in the upgrades will have a good financial return for utilities since coal consumption per kW will be reduced by up to 30 percent.

The air pollution impact of upgrading the old fleet to supercritical efficiency would be a reduction equivalent to 2.4 billion tons of CO₂. The validity of this calculation is easily determined by using the EPA cost justification values. CO₂, various air toxics and each criteria pollutant is assigned a monetary value, so this creates a common metric. There are other environmental benefits. The upgraded coal-fired power plants would not generate the water and solid waste caused by the old power plants. So, total environmental impact would be the equivalent of five billion tons of CO₂.

Many existing coal-fired power plants are so situated as to challenge the designer of the upgrade. However, there are many new developments which will make upgrades relatively easy and very beneficial. They include:

The job stimulus to upgrade the old coal-fired power plants would be substantial. Therefore, the upgrade program has political, economic and environmental benefits.

Over the next decade, China will spend $34 billion/yr. for new air pollution control equipment and systems. This is the conclusion reached by the McIlvaine Company in Air Pollution Management and several more specific market reports. (www.mcilvainecompany.com)

Particulate control will require an annual investment of $11 billion. The biggest single purchasing segment will be coal-fired power plant operators. There are tough new particulate regulations which existing precipitators cannot meet. Cement plants, steel mills and the chemical industry will also be big purchasers of fabric filters and precipitators.

The DeNO_x market will be greater than $10 billion/yr in the first five years and lower in the subsequent five years. In the current five year plan, selective catalytic reduction (SCR) will be added to 450,000 MW of existing power plants and 250,000 MW of new power plants. There will be FGD systems on each new power plant plus 100,000 MW of upgrades in just the next five years.

Acid gases from waste-to-energy plants, smelters, refineries and the chemical industry will be addressed primarily with scrubbers and adsorbers. Oil and gas extraction is another big market for acid gas removal.

China has not kept up with more developed countries in the removal of organics. These compounds are partially responsible for the substantial smog problems in Beijing and other areas. Catalytic and regenerative thermal incineration will be widely applied in the coming decade. Odor control at sewage treatment and food plants will be increasingly applied due to citizen complaints.

On Thursday at 10 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. These Webinars are free of charge to owner/operators of the plants. They are also free to McIlvaine subscribers. The cost for others is $300.00.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

	2014
DATE	SUBJECT
March 20, 2014	China Air Pollution Control	World’s Largest Market
March 27, 2014	Analysis Of Dry Scrubber Options	Top notch third party expert panelists and lots of background info.
April 8, 2014	Storage Tank Material Selection (ArcelorMittal Industeel)	More Information
April 10, 2014	Mercury Treatment Chemicals in Fuel, Flue Gas and Scrubbing Liquor	Important alternative to sorbents
April 17, 2014	Measurement Of Gas Turbine Emissions Including NH₃	Six different options
May 1, 2014	850^oF Particulate Removal With Ceramic Filter Media	Could change the whole back end
May 8, 2014	Sorbent Traps vs. Mercury CEMS	Sorbent traps are competitive
May 15, 2014	Gas Intake Filters: HEPA or Medium Efficiency	More information
May 29, 2014	Stellite Delamination in Power Plant Steam Valves	More information
June 5, 2014	Dry vs. Wet Cooling	Surprising number of ACC’S. Why?
June 12, 2014	HRSG Issues (Fast Start, Tube Failures)	Lots of challenges to cycle 200 x/yr
June 26, 2014	CCR	$ Billions Needed

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Five More Duke Energy Plants cited for Violations

Two More Thermal Power Projects planned in Karnataka, India

ANC Dubai to set up Two 660 MW Coal-fired Power Plants at Gaddani

Three New Gas Utility Projects planned for Ohio due to Natural Gas from Utica Shale

Two More Thermal Power Projects planned in Karnataka, India

ANC Dubai to set up Two 660 MW Coal-fired Power Plants at Gaddani