Power Air Quality Insights No

Power Air Quality Insights
No. 61 June 21, 2012

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.

· “Greenhouse Gas Strategies for Coal-fired Plant Operators” is the “Hot Topic Hour” on June 28, 2012

“Greenhouse Gas Strategies for Coal-fired Plant Operators” is the “Hot Topic Hour” on June 28, 2012

When the EPA published the proposed Greenhouse Gas (GHG) rule on March 27, 2012, operators of existing fossil-fired power plants could breathe a sigh of relief. The proposed Carbon Pollution Standard applied only to new power plants to be built in the future. However, this does not mean that operators of existing plants are free of GHG regulations. Existing plants will have to address GHG emissions when their Title V operating permit comes up for renewal (every five years) or when they make a major modification and apply for a PSD construction permit. The "Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule" requires all operating and construction permits issued after January 1, 2012 to include a BACT analysis for CO₂. About 25 Title V permits have been issued so far with BACT provisions for GHGs. Requirements typically include CO₂ CEMS, numerical CO₂ emission limits and fuel specifications. EPA has also insisted that Carbon Capture and Storage (CCS) be included in the BACT analysis, even if it is ultimately rejected.

Note that on May 24^th at the McIlvaine Company Hot Topic Hour on the “Status of Carbon Capture Programs and Technology,” the consensus of the expert speakers was that for many reasons, CCS is at least ten to twenty years away from being a viable solution for reducing CO₂ emissions. You can view the recording of this entire session by going to the McIlvaine website - www.mcilvainecompany.com.

The following speakers will help us understand the current situation regarding the GHG regulations:

Debbie Fox, an Environmental Attorney at The McIlvaine Company, will discuss the impact of EPA’s greenhouse regulations on existing coal-fired power plants. EPA recently proposed New Source Performance Standards (NSPS) that would effectively ban new coal-fired power plants without carbon capture and storage, but what about existing units? The so-called “Tailoring Rule” finalized in 2010 requires existing power plants to conduct a BACT analysis for greenhouse gases as part of the permitting process. Since the rule took effect in 2011, approximately twenty-five permits have been issued and Debbie will discuss the outcome of the corresponding BACT analyses to date.

David D. Doniger, Policy Director, Climate and Clean Air Program at the Natural Resources Defense Council (NRDC), will present an “Update on EPA's Proposed Carbon Pollution Standard for New Power Plants.” He will give NRDC's assessment of EPA's proposed CO₂ standards for new power plants under Section 111(b) of the Clean Air Act. He will also address options for EPA and the states to address CO₂ emissions from existing power plants under Section 111(d).

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 Environmental Upgrade Tracking System. The cost is $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report

DATE	Non-Subscribers Cost	SUBJECT	Webinar Type
June 28, 2012	$125.00	Greenhouse Gas Strategies for Coal-fired Plant Operators	Power
July 12, 2012	$125.00	CFB Technology and Clean Coal (Update on CFB Reactor Technology)	Power
July 19, 2012	$400.00	Future for Coal, Gas, Nuclear and Renewables (forecasts by region and discussion of market drivers and regulatory constraints)	Market Intelligence
July 26, 2012	$125.00	Beneficial Byproducts of Coal Combustion and Gasification	Power
August 2, 2012	$125.00	Mercury Control and Removal Status and Cost	Power
August 9, 2012	$400.00	Filter Media (forecasts and market drivers for media used in air, gas, liquid, fluid applications both mobile and stationary)	Market Intelligence
August 16, 2012	$125.00	Report from Coal-gen (highlights of speeches and exhibitions)	Power
August 23, 2012	$125.00	Report from Mega Symposium (highlights of speeches and exhibitions at this important air pollution conference)	Power
August 30, 2012	$400.00	Instrumentation for Air, Gas, Water, Liquids (forecasts , market shares, growth segments)	Market Intelligence
September 6, 2012	$125.00	Production of Fertilizer and Sulfuric Acid at Coal-fired Power Plants	Power

The financial crisis in the European Union coupled with the German Energy policy (Energiewende) cast a pall over an otherwise very impressive and active conference and exhibition. The three days of activities were capped with a McIlvaine Webinar conducted an hour after the show closed on June 14. You can view the webinar in entirety at:

The webinar started with coverage of the plenary panel session where the differences of opinion relative to the future of Germany were shown to be extreme. Economic disaster predicted by several panel members was countered with the comments of Alf-Henry Wulf of Alstom who saw “more opportunities than risks.” Thorsten Herden of VDMA believes the decision is irreversible. This is a sobering thought in light of the report that 600,000 German households are on the verge of losing power due to inability to pay the 33 cents/kWh which is the going rate in Germany.

EPPSA, which represents European power plant producers have made recommendations to accommodate the policy which would result in Germany producing 35 percent of its electricity from renewable by 2020. The group says that “Advanced Fossil Fuel Power Generation will be a fundamental requirement of a stable electricity grid.” The problem is that solar and wind are not reliable. You need the heavy rotating machinery at conventional power plants to provide the inertia to maintain the frequency (50 Hz) of the electricity supply.

Conventional coal-fired power plants will have to operate at partial load. This means improving performance to enhance this capability including ramp-up speed at low load and reducing part-load emissions. It will require developing flue gas parts for temperatures below the acid dewpoint.

The balance of the webinar was devoted to coverage of the speeches and exhibit displays. John Goldring of RJM talked briefly about the success obtained with low NO_x burners and combustion optimization at Ferrybridge. The plant was able to reduce emissions to the targeted 200 mg/Nm³.

The webinar included details on the Durag use of thermography to optimize flame temperature and distribution for maximum boiler efficiency. A brief display of the IBAU website was accompanied by McIlvaine observations that exhibitors at Power-Gen Europe represented the world’s knowledge on conveying of flyash and dry sorbent. IBAU, F.L. Smidth, Claudius Peters, and United Conveyor were all exhibitors. A paper by United Conveyor covered aspects of sorbent injection including proper size reduction of the Trona.

Idex has acquired a number of companies over the years to position itself in the power industry. Idex Sampi was an exhibitor displaying a range of flow control products for fuel used with start- up of coal plants and as an alternative to gas in turbines. Corken supplies the pumps for moving ammonia and systems for vapor recovery.

McIlvaine will be posting 80 pictures from the show. Two include coverage of Siemens’ activity including the ABT burners and the precipitator upgrades. Siemens now has both the ABT and Steinmueller burner technologies. It offers complete precipitator control upgrade packages, which can eliminate the necessity of adding another field to obtain needed efficiency increases.

Burning wastes and difficult fuels was addressed by both Metso and Foster Wheeler. Metso has a number of new contracts for plants burning wastes. Foster Wheeler is building 4 x 550 MW advanced CFBs with ultrasupercritical steam technology for the Korean Southern Power Company Samcheok plant. The plant will burn high moisture Indonesian coal and biomass. No scrubber is needed due to the CFB capture of SO₂.

In the webinar the Parker technologies for cooling and electricity storage were displayed. Parker needed a large stand to display the hundreds of products it offers the power industry.

Mercury capture was a subject addressed at the Cormetech stand. Karin Madsen of Haldor Topsoe provided details of research which shows the impact of temperature and ammonia on the oxidation of mercury in the presence of the catalyst.

There were a number of companies displaying air pollution control technology. B&W had a large stand. Alstom had a major presence but McIlvaine was unable to track down any of the air pollution control people. Hamon was exhibiting its acid gas and dust collection technologies. One recent success in Bosnia is a hybrid upgrade. A portion of an existing precipitator was replaced with bags. The result is an emission below 2 mg/Nm³. Andritz was displaying its newly acquired FGD technology along with its pumps and impressive hydropower capability.

The most impressive aspect of the displays was the coverage of gas turbine inlet filters. AAF, Flanders, Freudenberg, EMW and W. L. Gore all featured the high efficiency filters now available. There was agreement on the need for removal efficiencies at the EU 12 level but not on whether pulsed filters were generally needed. W. L. Gore has a new membrane high efficiency filter in both the pulsed and static design. The static design is a unique Z shape.

§ MHI awarded FEED Contract for HECA Carbon Capture Project in California

Improved transmission systems are critical to the use of renewable energy. Transmission upgrades made to improve the transport of renewables are covered in McIlvaine’s Renewable Energy Projects and Update.

CapX2020 Transmission Expansion Receives Final 345 kV Minnesota Route Permit Approval

The Minnesota Public Utilities Commission voted unanimously to grant a Route Permit for an approximate 80-mile 345 kilovolt (kV) electric transmission line between Hampton and Rochester, MN to the Minnesota border near Alma, WI.

“The La Crosse project will increase reliability in the growing Rochester area and surrounding rural areas and will improve access to renewable generation in southeastern Minnesota,” said Priti Patel, co-director of CapX2020. “The Commission’s decision affirms the need for transmission in Minnesota and regionally to serve customers with reliable, affordable electricity for decades to come.”

Permit approval for the 345 kV line in Wisconsin was expected on or before June 4, 2012. The federal Environmental Impact Statement, which covers the entire project, is expected to be issued in June, with federal approval this fall. Construction is expected to start in Minnesota in early 2013. The Hampton-Rochester-La Crosse project, including the route in Wisconsin, is expected to be energized in 2015. The overall project cost is approximately $490 million.

Western Area Power Administration and Southline Transmission, L.L.C., have signed an advanced funding agreement that will pay for Western staff support for the proposed Southline Transmission Project during its development phase.

The Southline Transmission Project would collect and deliver electricity across southern New Mexico and southern Arizona, relieving congestion, strengthening the existing electrical system and improving transmission access for local renewable and other energy sources.

ABB has won orders worth around $45 million from leading U.S. utility Oncor, to provide electrical solutions that will increase transmission capacity, ensure grid stability and facilitate the integration of renewable power in Texas. The order was booked in the first quarter.

ABB’s flexible alternating current transmission systems (FACTS) will be incorporated into the Competitive Renewable Energy Zones (CREZ) program, which aims to increase the contribution of renewable energy in Texas by up to 18 gigawatts. Completion of the transmission systems within CREZ will allow energy customers in the region to benefit from one of the world’s largest wind generation installations.

ABB will design, supply, install and commission one static var compensator (SVC) and two series compensators (SCs). “These FACTS solutions will boost power capacity, support the integration of wind power in Texas and help improve grid reliability in the region,” said Brice Koch, head of ABB’s Power Systems division. “ABB has a strong track record of delivering environmentally friendly SVC and SC solutions around the world and we have a large installed base in the US, having executed several similar projects for Oncor.”

Scottish Hydro Electric Transmission Limited (SHETL), the licensed transmission owner in the north of Scotland, is planning to develop a 109 km subsea electricity cable between Caithness and Moray to transmit the large volume of existing and planned electricity from renewable sources in the north of Scotland.

The proposed subsea cable, which will connect to onshore substations at Spittal in Caithness and Blackhillock, near Keith in Moray, is one of a number of transmission network reinforcements being undertaken by SHETL. The cable will be capable of transmitting around 1,200 MW (megawatts) of electricity and will be developed using High Voltage Direct Current technology.

Work is already being carried out by SHETL to reinforce the electricity transmission network in Caithness. This work includes replacing the existing electricity substation at Dounreay and installing new conductors on the existing power line between Dounreay and Beauly. Looking to the requirements of generators beyond those accommodated by these works, SHETL is proposing to develop the subsea cable and the necessary onshore network reconfigurations, upgrades and new substations required to support the cable.

There are a number of proposed electricity generation developments in the north of Scotland, including marine generation in the Pentland Firth and Orkney Waters, major wind farm proposals on Shetland, offshore wind farm projects in the Moray Firth and further renewables on the Scottish mainland. The development of the subsea cable will support these proposed developments but is not dependent on any specific development. The proposal retains the flexibility to accommodate generation developments as and when the need to do so arises.

The relevant planning consent has been granted for a new substation at Spittal and a planning application will shortly be submitted to The Moray Council seeking consent to rebuild and extend the existing substation at Blackhillock. The next stage in the development of the subsea cable will be to carry out the relevant seabed survey work

New York Independent System Operator President and CEO Stephen G. Whitley told policy makers and industry representatives gathered at Governor Andrew M. Cuomo’s New York Energy Highway Summit that the future of New York State’s transmission grid is at a crossroads and that there is an opportunity to make strategic, cost-effective investments that will provide numerous benefits for the state over the next several decades.

“Today, New York has a statewide surplus of electric energy, but we are limited in our ability to transmit that electricity from areas of surplus to areas of need,” Whitley said. “The congested transmission system has led to significant price disparity for wholesale electricity across the state, hinders the ability of generation owners in the northern and western parts of the state to sell their power to areas of need during peak demand periods, limits the growth of renewable resources and frustrates our ability to fully realize the advantages of the diverse generation options we have in New York.”

Whitley noted that New York has witnessed significant growth in the development of renewable resources in the northern and western regions of the state, and there is potential for future growth and expansion.

“An energy highway will help deliver these resources to some of the largest load centers in the United States—New York City and Long Island,” he said.

American Electric Power and Great Plains Energy have formed a new company to develop and invest in transmission. Through Transource Energy(SM) LLC (Transource), AEP and Great Plains Energy initially plan to pursue competitive transmission projects in the PJM Interconnection, Southwest Power Pool (SPP) and Midwest ISO (MISO) transmission regions. AEP owns 86.5 percent of Transource. Great Plains Energy owns 13.5 percent.

Great Plains Energy will seek regulatory approval to transfer two SPP-approved regional transmission projects, located in Missouri, to Transource. The Sibley-Nebraska City line is a 175-mile, 345-kilovolt (kV) line linking the Nebraska City substation (owned by Omaha Public Power District) near Nebraska City, NE, with the Sibley substation near Sibley, Mo. Transource would construct and own approximately 170 miles of the project. Omaha Public Power District would construct the remainder of the transmission line. The project, estimated to cost approximately $380 million, has an anticipated in-service date of 2017.

The Iatan-Nashua line is a 30-mile, 345-kV line from the Iatan substation near Weston, MO., to the Nashua substation near Smithville, MO. The Iatan-Nashua project, estimated to cost approximately $54 million, has an anticipated in-service date of 2015.

Transource expects to file an application with the Missouri Public Service Commission this summer for line certificates granting authority to construct, own and operate the two SPP regional projects. Transource also intends to apply for a FERC formula rate for the Missouri projects later this year.

§ MHI awarded FEED Contract for HECA Carbon Capture Project in California