Power Air Quality Insights No

Power Air Quality Insights
No. 168 August 1, 2014

WELCOME

The following insights can be sent to you every week. This alert contains the details on the upcoming hot topic hour, breaking news, and the headlines for the Utility E Alert for the previous week. This is one of a number of free services. You can sign up for any of these newsletters and of course request to be removed from the mailing list at any time. See registration following the newsletter.

· Mercury Removal from Natural Gas and Industrial Stacks Will Generate Billions of Dollars in Annual Revenues for Solutions Providers

· Upgrading Coal Plants around the World Is the Best and Quickest Way to Reduce CO₂

· “MATS Timing and Technology Options” “Hot Topic Hour” On August 7, 2014

Mercury Removal from Natural Gas and Industrial Stacks Will Generate Billions of Dollars in Annual Revenues for Solutions Providers

There are two major factors which are creating a large market for mercury reduction. One factor is the damage mercury does to aluminum heat exchangers in the natural gas industry. Minute quantities of mercury in the gas can quickly cause major damage to heat exchangers. As a result, mercury reduction is a required step in most gas processing facilities. The other factor is regulatory. Governments around the world are limiting mercury emissions. This activity is reported in Mercury Air Reduction Market.

The U.S with less than 5 percent of the mercury emissions is leading the way and setting reduction examples for the rest of the world. Approximately 2,000 tons of mercury are emitted yearly due to human activities. Much of this in vapor form travels from continent to continent, so it is worldwide problem.

Most of the world’s waste incinerators have some form of mercury control, so actual emissions are approximately 50 tons per year. More than 100 tons is captured by pollution control devices.

The U.S. has tough regulations which require compliance over the next three years. They affect coal-fired power plants, cement plants and industrial boilers. Existing coal-fired power plants in the U.S. have limited mercury to emit less than 4 ug/m3. Cement plants are allowed to emit 12 ug/m3. In Germany, coal-fired boilers and incinerators are limited to 30 ug/m3. China recently limited coal-fired power plants to 30 ug/m3, but is already considering reducing the limit to less than 5 ug/3.

Ten years ago when U.S. EPA started its investigation process, activated carbon injection appeared to be the best solution. It now is apparent that there are many options which should be considered.

Upgrading Coal Plants around the World Is the Best and Quickest Way to Reduce CO₂

The reality is that coal will remain a major fuel source for electricity generation for the next several decades. Coal generators will continue to be the leading source of CO₂ emissions. Making these plants more efficient is the easiest way to reduce not only CO₂ but all the pollutants. The cost and benefits of an efficiency improvement program are provided in the McIlvaine report, Fossil and Nuclear Power Generation: World Analysis and Forecast. (www.mcilvainecompany.com)

A new study from IEA released in July 2014, cites the Chinese example as the model. The Chinese are now anticipating an economic plant life of 25 years as opposed to 40 years used as the EU model and even longer in the U.S. China is replacing small old plants with new ultrasupercritical designs. These designs all have the latest air pollution control equipment. China realizes that technological improvements make existing plants obsolete after 2.5 decades. Who would argue that the economic life of an automobile is more than 25 years?

IEA points out that a 25-year economic life model completely changes the priorities for CO₂ reduction in many countries of the world. This is particularly true for the U.S. which has the oldest coal fleet.

The “Clean Power Plan” just announced by U.S. EPA relies on improving energy efficiency at old coal-fired power plants. That is the equivalent of trying to make a sixty year old gas guzzler as efficient as a 2014 model hybrid. The clear choice is to scrap the gas guzzler and buy a new car. This is also the obvious way to meet the EPA goals relative to coal-fired power. In fact, the new coal-fired power plant solution is a win-win situation for all sides because:

· Because of the twenty-five year optimum life of a coal-fired power plant, there will be a whole new set of options in 2045.

· Use of vertical space. The average power plant already has stacks many hundreds of feet high. Kiewit has an innovative use of the grain tower design to build 80 foot diameter modules which are 400 feet high. So innovations such as this will result in cost effective upgrades.

· Upgrades/replacements are more efficient and, therefore, produce more electricity for a given footprint.

· Use of new technology such as catalytic filters. This filter combines particulate filtration and NO_x reduction in one unit greatly reducing space requirements and retrofit costs.

· Use of treated municipal wastewater for cooling and other purposes. Nearly all existing power plants are within 70 miles of enough treated municipal wastewater to supply their water needs.

· Zero liquid discharge systems. Upgraded power plants will not have water discharges.

· Co-generation and reduction of emissions from other sources. Great Rivers Energy has Blue Flint ethanol plant on-site. The ethanol plant has no boiler and no emissions since it uses waste heat from the power plant.

· Supplementing coal with other fuels for optimum cost and environmental improvements. Gasified municipal waste and biomass can be used as re-burn fuels to reduce NO_x.

Since all sides benefit, there is every reason for agreement, fast track siting of new power plants and simultaneous retirement of old power plants.

The “Clean Power Plan” proposed by the Obama Administration seeks to achieve a 30 percent reduction in CO₂ emissions from existing electric generating units by 2030 based on a 2005 baseline. States must show “meaningful progress” by 2020. With a strategy of coal-fired power plant replacement, this progress and compliance with the timelines will be assured.

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 5 billion tons of CO_2.

Ventinveste, a consortium of some of Portugal's top energy and engineering companies, and Ferrostaal GmbH, a project developer with investments worldwide, will build four wind farms in the country, in a €220 million investment that will strengthen the country's renewable energy cluster.

Project Ancora, as the venture is known, will comprise a combined 171.6 MW that will have a starting tariff of €68/MWh, a challenge to the promoters, as these are among the lowest wind tariffs in the country. The average wind tariff in Portugal is €93/MWh, according to ERSE, the country's energy markets regulator.

The farms will entail a total 84 wind energy turbines, which will be produced in Oliveira de Frades and in Vagos, in Northern Portugal. Construction will begin immediately after the financial closing of the agreement, which is expected to take place in the 4th quarter of the year and the connection to the grid is planned to occur in a sequence spanning from mid-2015 to the middle of 2016.

B&W Vølund Signs $80 Million Contract to Build Biomass Power Plant in Denmark

The Babcock & Wilcox Company (B&W) announced that Babcock & Wilcox Vølund A/S (B&W Vølund), a subsidiary of Babcock & Wilcox Power Generation Group, Inc., has been awarded a contract for more than $80 million to build a 280 megawatt-thermal (MWth) biomass boiler system for the Skærbækværket power plant near Fredericia, Denmark.

The plant, owned by DONG Energy Thermal Power A/S, will consist of two 140 MW biomass-fired boilers used to supply district heating and power to residents in the region. The boilers will be fueled primarily by wood chips, as well as other biomass residue.

B&W Vølund’s scope consists of the design, manufacture, supply, construction and commissioning of the plant’s boiler system. The contract was booked in the second quarter of 2014.

In the last decade, B&W Vølund has contracted to build approximately 40 waste-to-energy plants and more than a dozen biomass energy plants utilizing a wide variety of renewable and waste fuels in Asia and Europe.

SunEdison Partners with Community Energy on Colorado’s Largest Solar Power Plant

SunEdison, Inc., a leading global solar technology manufacturer and provider of solar energy services, announced its acquisition of the 156 megawatt (MW) DC Comanche Solar project from renewable energy developer Community Energy. SunEdison is partnering with Community Energy to complete the final development stage of the project by structuring the financing and providing procurement expertise for the project, following which SunEdison will manage the construction, operation, and maintenance of the solar power plant. Construction will begin in 2015 with commercial operation targeted for early 2016. The Comanche Solar project is one of the TerraForm Power call right projects, whereby TerraForm has the option (but not the obligation) to purchase the project from SunEdison once it achieves commercial operation.

Xcel Energy will purchase electricity generated from the solar photovoltaic (PV) power plant under a 25-year power purchase agreement with SunEdison at rates that are competitive with the long-term forecast for natural gas-fired generation.

The 900-acre solar power plant will be comprised of more than 400,000 SunEdison high efficiency mono-crystalline PV modules. Once operational, the solar power plant will be managed by the SunEdison Renewable Operation Center (ROC), which provides global 24/7 asset management, monitoring and reporting services.

Cenergy Power and Greenleaf-TNX Successfully Commission 1.8 MW “Cloverdale Solar” Project on Sonoma County Landfill

Cenergy Power and Greenleaf-TNX are pleased to announce that they have successfully commissioned a 1.8 MW DC solar facility in Cloverdale, CA, known as the “Cloverdale Solar” project. Greenleaf-TNX’s Cloverdale system was designed, engineered and constructed by Cenergy Power. Cenergy will also provide ongoing operations and maintenance (O&M) services to the site.

The site will sell the power generated by the Cloverdale Project to PG&E under a 20 year Power Purchase Agreement.

Despite major obstacles with the wood landfill site in Sonoma County, the Cloverdale Project began construction in late 2013 and successfully achieved its “permission to operate” prior to an interconnection deadline in June 2014. “We were not allowed to grade the area or penetrate the landfill due to strict guidelines advanced by Sonoma County and the State of California,” stated Andrew Goldin, Senior VP of Operations for Cenergy. “This added complexity to the project’s engineering and interconnection requirements, which was overcome with creative solutions and a great team effort between Cenergy and Greenleaf.”

The Cloverdale project is designed to generate over 2.7 million kilowatt hours of energy annually, the equivalent of 6,000,000+ pounds of CO₂.

Small Businesses Added to $7 Billion Renewable Energy Multiple Award Task Order Contract

The Army has awarded the final round of solar technology contracts that will support a $7 billion renewable and alternative energy power production for Department of Defense installations Multiple Award Task Order Contract (MATOC).

The U.S. Army Energy Initiatives Task Force (EITF) and the U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, established the $7 billion MATOC primarily to use for Power Purchase Agreements involving renewable or alternative energy projects greater than 10 megawatts.

These contracts will support the Army's achievement of its congressionally mandated energy goal of 25 percent production of energy from renewable sources by 2025, and improving installation energy security and sustainability.

The contract awards add 11 small businesses to the pool of qualified contractors who will be eligible to bid on future individual solar technology project task orders.

The MATOC now includes 49 solar technology companies, 15 biomass technologies, 6 geothermal technologies and 20 wind technologies.

For more information on Renewable Energy Projects and Update please visit:

· Beijing closes Coal-fired Power Plant to cut Pollution

· MHPS and HCH jointly receive Order for H-25 Gas Turbine for Ningbo Kefeng Thermal Power Co. in China

· Saudi Electricity signs Four Contracts for Gas-fired Power Projects worth SR4.361 Billion

· Eesti Energia orders 30,000 Filter Bags from BWF Envirotec for Oil Shale-fired Power Plant

· Mexico's CFE to tender $2.8 Billion in Power Plant, Pipeline Projects

· “Mercury Sorbent Options” Hot Topic Hour on July 31 will focus on the Dry Sorbents Used to Capture Mercury

“MATS Timing and Technology Options” is the “Hot Topic” On August 7, 2014

The webinar on August 7th will assist power plants who are dealing with meeting the new Mercury and Air Toxic Standards (MATS rules). The challenge is that the best solution for mercury removal may not be the best solution for removing the necessary quantities of acid gases and fine particulate. The best air pollution solution may not be the best environmental solution when water and solid waste aspects are considered. So you need to travel back and forth between technology solutions to find the one most appropriate to your needs. The McIlvaine system for doing this is equivalent to a trip using GPS and is labeled Global Decisions Positioning System (GDPS)

This GDPS takes you back and forth through a number of free websites each focused on one of these decision areas Continuous Analyses. The webinar will reference these websites and displays.

The webinar will include insights from experts on the latest developments and how they may affect your decision making. The effluent rules were delayed a year so that compliance with CCR will not precede it. One hundred plants have received a MATS extension of one year. This will make it easier for those who are meeting the original timeline due to lower demand at that critical time.

These developments will be explored along with the latest technical developments relative to reduction of mercury, HCl and fine particulate. The potential for one-stop shopping with a catalytic filter using DSI at 850^oF will also be explored.

Kevin Crosby, Technical Director, The Avogadro Group, LLC, STATIONARY SOURCE TESTING

For the complete Hot Topic schedule and registration information see below. The webinar on August 7^th is free to power plant operators and McIlvaine subscribers. There is a charge for others.

On Thursday at 10 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. Power webinars are free for subscribers to either Power Plant Air Quality Decisions or Utility Tracking System. The cost is $300.00 for non-subscribers.

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

DATE		SUBJECT
	August
	7		MATS Timing and Technology Options
	14		Industrial Boiler and Cement MACT Timing and Compliance Options
	21		MEGA Symposium
	28		Demineralization and Degasification
	September
	4		Hot Gas Filtration
	11		Power Plant Pumps
	18		Power Water Monitoring
	25		Power Plant Water Treatment Chemicals

Mercury Emissions from Human Activities (tons per year)
Source	World	U.S.	East Asia
Municipal incinerators	50	2	20
Cement	150	15	150
Coal burning	600	40	300
Mining	800	1	300
World	2,000	100	800

· Beijing closes Coal-fired Power Plant to cut Pollution

· Mexico's CFE to tender $2.8 Billion in Power Plant, Pipeline Projects