Power Air Quality Insights No

· “Shale Markets and Instrumentation” is “Hot Topic Hour” on Friday, February 1^st

· “Control Valves for Power Plants, Boilers and Water Treatment Facilities” is “Hot Topic Hour” on February 7, 2013

· Desalination Flow Control and Treatment Revenues to Exceed $9 Billion by 2020

“Shale Markets and Instrumentation” is “Hot Topic Hour” On Friday, February 1, 2013

At 10 a.m. (CST) on Friday, February 1, McIlvaine will be providing some general market forecasts for the oil and gas shale industry. This will be supplemented by some specific applications for instrumentation. Perkins & Elmer will be covering the important subject of measuring methane in water. Lee Marotta, Senior Field Application Scientist at PerkinElmer, Inc., and Dennis Yates, Senior Spectroscopy Technology Specialist will be speakers. Tom Tschanz and Bob McIlvaine of McIlvaine will be discussion leaders.

There is a big controversy as to whether methane found in drinking water has always been there or is the result of some new fracking activity. It is, therefore, important to quantify the methane levels before and after gas and oil extraction.

McIlvaine will be initiating discussions on the future of both gas and oil shale. The U.S. market has recently shifted from the dry shale in the East to the wet shale in the West. But plans for gas to liquids, gas turbine combined cycle and LNG plants all promise to drive up the price of shale gas and increase the number of drilling rigs. The amount of shale gas and oil potentially recoverable in other countries far exceeds that in the U.S. The question is when, if ever, will this international potential be exploited?

The impact of regulatory activity has a somewhat negative impact on total production, but not on the instrumentation markets. The new requirements for emission reduction during well completion plus tighter limits on air and water emissions all will boost instrument sales. The complexity of fluids extracted from shale also requires more extensive instrumentation for both processing and custody transfer. Measurement of temperature throughout the extensive perforated horizontal casing two miles underground is just one other example of this complexity.

“Control Valves for Power Plants, Boilers and Water Treatment Facilities” is “Hot Topic Hour” on February 7, 2013

At 10 a.m. on February 7, McIlvaine will conduct a “Hot Topic Hour” on control valves for power applications. This will be an interactive discussion, so we encourage those of you with questions and perspective to join us. The basic structure will be:

Combustion, heat exchange, water treatment, boiler feedwater, wastewater treatment, air pollution control, solids handling

Tom Tschanz and Bob McIlvaine will be leading the discussion and displaying diagrams and other material to facilitate the discussion.

This service is free to our Power Plant Decisions, Valve World Markets, Utility Upgrade Tracking and Fossil and Nuclear World Markets and certain other subscribers. There is a $125 charge for others.

To register for the February 7, 2013 “Hot Topic Hour” at 10 a.m. Central time, click on:

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 subscribers and are $400.00 for non-subscribers.

DATE	Non-Subscribers Cost	SUBJECT	Webinar Type
February 1, 2013	No charge	Shale Markets & Instrumentation	Free
February 7, 2013	$125.00	Control Valves for Power Plants, Boilers and Water Treatment Facilities	Power
February 14, 2013	$125.00	NO_x Control for Gas Turbines	Power
February 21, 2013	$125.00	Monitoring and Controlling Boiler Water and Steam Cycle Chemistry	Power
February 28, 2013	$125.00	Implementation of the Utility MACT Rule	Power
March 7, 2013	$125.00	HRSG Design, Operation and Maintenance Considerations	Power
March 14, 2013	$125.00	Inlet Air Pretreatment for Gas Turbines	Power
March 21, 2013	$125.00	Industrial Boiler MACT Impact and Control Options	Power
March 28, 2013	$125.00	Mercury Measurement and Control	Power
April 4, 2013	$125.00	Fabric Selection for Particulate Control	Power
April 11, 2013	$125.00	Air Pollution Control for Gas Turbines	Power
April 18, 2013	$125.00	Multi-pollutant Control Technology	Power
April 25, 2013	$125.00	Control Technologies for Fine Particulate Matter	Power
May 2, 2013	$125.00	Flyash Pond and Wastewater Treatment Issues	Power
May 9, 2013	$125.00	Clean Coal Technologies	Power
May 16, 2013	$125.00	Power Plant Automation and Control	Power
May 23, 2013	$125.00	Cooling Towers	Power
May 30, 2013	$400.00	Air Pollution Control Markets (geographic trends, regulatory developments, competition, technology developments)	Market Intelligence
June 6, 2013	$125.00	Report from Power-Gen Europe (update on regulations, speaker and exhibitor highlights)	Power
June 13, 2013	$125.00	Monitoring and Optimizing Fuel Feed, Metering and Combustion in Boilers	Power
June 20, 2013	$125.00	Dry Sorbent Injection and Material Handling for APC	Power
June 27, 2013	$400.00	Power Generation Forecast for Nuclear, Fossil and Renewables	Market Intelligence
July 11, 2013	$125.00	New Developments in Power Plant Air Pollution Control	Power
July 18, 2013	$125.00	Measurement and Control of HCl	Power
July 25, 2013	$125.00	GHG Compliance Strategies, Reduction Technologies and Measurement	Power
August 1, 2013	$125.00	Update on Coal Ash and CCP Issues and Standards	Power
August 8, 2013	$125.00	Improving Power Plant Efficiency and Power Generation	Power
August 15, 2013	$125.00	Control and Treatment Technology for FGD Wastewater	Power
August 22, 2013	$125.00	Status of Carbon Capture and Storage Programs and Technology	Power
August 29, 2013	$125.00	Pumps for Power Plant Cooling Water and Water Treatment Applications	Power

Desalination Flow Control and Treatment Revenues to Exceed $9 Billion by 2020

Desalination plant flow control and treatment expenditures are now just 1.5 percent of the $340 billion dollar flow control and treatment market. While the market as a whole will increase at 5.5 percent, the growth in the desalination sector will be nearly twice as high. These are the conclusions reached by the McIlvaine Company in Air/Gas/Water/Fluid Treatment and Control: World Markets. (www.mcilvainecompany.com)

Flow control and treatment revenues will grow from $4 billion in 2013 to $9 billion/yr by 2020. The substantial revenue increases are a function of repairs and upgrades as well as new capacity. When the installed base is growing so rapidly, there is a corresponding growth in repair parts and consumables.

Another reason that the flow control and treatment revenues will grow rapidly is the increasing preference for reverse osmosis vs. thermal treatment. The filtration and pre-filtration steps represent a significant portion of the total expenditure when desalination is accomplished with RO.

There are substantial repair part revenues associated with the primary and energy recovery pumps. Valve part revenues are also significant. Dow Chemical benefits with hundreds of millions of dollars of revenue generated by replacement of existing RO modules. The company is also replacing alternative pre-treatment filters with UF. Chemical cleaning of the RO system is reduced. The result is a reduction in life cycle costs.

Upgrades to existing thermal systems will generate substantial revenues. Yokogawa Electric completed a project in 2012 to replace the control systems for the boilers, distillation unit and auxiliary facilities at the Shuwaikh seawater desalination plant. The Centum series integrated production control system which makes this plant operation more efficient and reliable. It replaced the aging control systems for three boilers, three distillation units and auxiliary facilities. The Yokogawa Centum series integrated production system controls all plant facilities. Also included were a Prosafe-RS safety instrumented system for the burner management systems on the boilers, a PRM integrated device management software package to monitor plant facilities and predict when maintenance is necessary.

At the Perth Seawater Desalination Plant at Kwinana, Australia Siemens automation technology provided the opportunity to greatly reduce the enormous quantity of copper cabling and connections normally required for a plant of this scale. The quantity of copper has been reduced by using intelligent communications and fibre-optic cable. Much less cable in the plant results in lower capital costs and improved reliability. Using a combination of leading-edge software, hardware and diagnostics, plant operators can predict maintenance needs more efficiently.

Power plants in East Asia will spend $4.8 billion on flue gas desulfurization (FGD) this year. This will be 63 percent of the total worldwide expenditure. This is the conclusion reached in FGD World Markets published by the McIlvaine Company. (www.mcilvainecompany.com)

These forecasts do not include repair parts and upgrades nor do they include consumables such as lime and limestone. Total expenditures by the power plants for FGD will exceed $15 billion in 2013.

China continues to spend more for new FGD systems than the rest of the world combined. It is also requiring existing power plants to upgrade to meet tougher standards. The new air toxic rules in the U.S. are leading older and smaller power plants to install dry sorbent injection systems. They reduce the hydrogen chloride to meet the new limits and also remove SO₂. An alternative is the more capital intensive fluid bed absorber. It has the advantage of SO₃ capture and uses less lime.

Several new FGD technologies hold promise. Neumann systems have made improvements to the double alkali system. Clear Edge has a catalytic filter which captures SO₂, particulate and NO_x. Hitachi has a system which produces both gypsum and hydrochloric acid.

The FGD system is both a major capital and operating cost to the operator. This cost can be minimized with some of the newer optimization and process control systems. Neuco uses neural networks to optimize the boiler efficiency, NO_x generation as well as NO_x, SO₂, and mercury emissions.

Another trend is toward use of a main automation contractor to ensure synergy with the many FGD sub systems and components. Yokogawa supplied the FGD automation for the Turceni power plant, in Romania (330 MW x 7 units), Yokogawa provided its CENTUM VP Integrated Production Control System; field devices such as DPharp EJX Pressure/Differential Pressure Transmitters, pH analyzers and temperature transmitters; the Plant Resource Manager (PRM) integrated device management tool; and the Exaquantum Plant Information Management System.

Overcoming language and knowledge barriers is necessary for successful export of air pollution control systems and products. This is the advice offered by McIlvaine in its Air Pollution Management service. (www.mcilvainecompany.com)

Several European nations along with Japan and the U.S. are funding programs to boost export of domestic air pollution control systems and components. One challenge is the lack of experience and knowledge and another is the fluency with English technical terms. The fact that the Asians in general incorrectly use denitration or dentrification instead of DeNO_x to describe the reduction of NO_x in the stack gases is testimony to the problem.

Before exporting countries can successfully communicate, it is necessary to precisely classify the products to be exported. In fact, there are no comprehensive and precise definitions and classifications for the latest air pollution control technologies. There was no agreement on ways to clean NO_x catalyst until McIlvaine formed a committee of catalyst suppliers who agreed that there are really only three ways to treat existing catalyst for reuse:

Descriptor	Chinese Descriptor	Definition
Cleaning Catalyst	催化剂除灰	A dry process that utilizes vacuum and compressed air to mechanically remove as much of the flyash accumulation as possible.
Regeneration Catalyst	催化剂再生	“Catalyst cleaning” followed by a wet chemical process to remove decay compounds plus re-impregnation of the catalytic compound(s).
Rejuvenation Catalyst	催化剂复原	“Catalyst cleaning” followed by a wet chemical process to remove some decay compounds with minimum removal of catalytic compound(s). There is no re-impregnation of the catalytic compound(s).

These three methods have now been defined and precise translations created in Chinese.

There are a number of ways to reduce NO_x. These have been summarized in the McIlvaine Global Decisions Orchard.

DeNO_xDecisively Classified Options for Coal, Cement, Incineration
*Option*	*	*Details*
SCR	E	Ammonia injection followed by a catalytic reactor
	A	High efficiency and accepted by regulatory authorities
	D	Cost, catalyst plugging, space
SNCR	E	Urea injection in the furnace
	A	Low cost, low maintenance, space
	D	Low efficiency, ammonia slip
Ozone Oxidation	E	Ozone injection followed by scrubber
	A	Little space if scrubber already in place
	D	Ozone cost, efficiency
Hydrogen Peroxide	E	Chemical injection converts to NO₂ followed by scrubbing
	A	Low capital cost if scrubber already in place
	D	Chemical cost
Catalytic Filter	E	Fabric filter has embedded catalyst
	A	Lower foot print with combination, lower capital and operating cost
	D	Lack of experience
* E= explanation A=advantages D=disadvantages

The sequence of decision making for the specifier is unique. Here is the sequence recommended for decisions on monitoring ammonia slip from a gas turbine:

Decision Sequence	Decision Category	Decision Subject	Explanation
Level 1	Orientation	Specifier	Purchaser or A/E making the decisions for bid purposes
Level 2	Application	221112 – Fossil Fuel 化石燃料 Gas-fired 燃气	Also applicable for coal-fired power plants, incinerators and cement kilns
Level 3	Process	NO_x Reduction	Can be used with both SCR and SNCR
Level 4	Location	SCR Outlet	Measure ammonia slip
Level 5	Pollutant	NH₃	Ammonia which escapes SCR
Level 6	Product	CEM	Continuous emission monitor to measure ammonia after reaction with NO_x
Level 7a	Type	In situ	Big differences between measuring in stack and taking a small sample and conditioning and treating it
Level 7b	Type	Extractive	Extract sample, condition and measure
Level 8a	Principle	Laser Spectroscopy (TDL IR)	Advantages: Interference free, in situ or extractive Disadvantages: Moisture interference, limited experience
Level 8b	Principle	Automated Wet Chemistry	Advantages: familiarity, quick set up and good for extractive periodic testing Disadvantages: labor intensive, reagents
Level 8c	Principle	NO_x Differential	Advantages: Tried and proven Disadvantages: Poor sensitivity to high NO_xlevels
Level 8d	Principle	UV Photometry	Advantages: Tried and proven Disadvantages: Strong interference from SO₂
Level 8e	Principle	Ion Mobility	Advantages: Sensitive and interference free Disadvantages: Not suited for corrosive gases, slow response
Level 8f	Principle	IR-Multi Component	Advantages: Multiple species Disadvantages: Cost

Exporting countries and companies need to promote the decisive classification of the products which they wish to sell. All decision making is a series of classifications. A clear presentation of the alternatives will facilitate better decision making. This will be one of the most cost effective ways to expand exports.

The low price of natural gas has resulted in the construction of a number of gas turbine power plants. New construction plus the growing replacement market will boost gas turbine inlet air filter sales to over $400 million in 2013. This segment will account for 6 percent of the $7 billion air filter market. This is the conclusion reached by the McIlvaine Company in its Air Filtration and Purification World Markets. (www.mcilvainecompany.com)

The inlet air filter is necessary to protect the high speed elements within the gas turbine from excessive wear. As turbine performance has increased, so has the need to remove smaller and smaller particles. As a result, the HEPA range of filters is now frequently needed. Since these filters do not have the dirt holding capability of less efficient filters, it is typical to furnish pre-filters.

Static filters and pulsed filters are the two choices for final filtration. The highest efficiency is obtained either with microglass fibers or with membranes. The incentive to utilize high efficiency filters is expanded when the gas turbine in a locality with very tough emission standards. In California, some permits require the exhaust emissions to be cleaner than the ambient incoming air. So unless the air filter removes the particles, the unit will not be in compliance.

The filters are often supplied by companies who manufacture complete intake systems. Donaldson and Nederman will supply the filters, cooling devices and the housing. These other products substantially increase the revenue opportunity. The intake system purchases in 2012 will be in excess of $1 billion.

The total market for gas turbine systems in 2013 will be $56 billion. Over 70,000 MW of new turbines will be sold. The U.S. will purchase 16,000 MW, bringing its total installed base to over 300,000 MW.

Much of the new U.S. construction is for base loaded combined cycle plants. Much of the existing base is peaking turbines. This distinction is important because filter purchases are less for the peaking turbines. Since these turbines only operate a few weeks or months per year, filter replacement is less frequent.

The intake systems represent 2 percent of the total system expenditure. The combined purchases of new intake systems and filters plus replacement filters will be $1.3 billion.

For more information on Air Filtration and Purification World Markets, click on:

Many different schemes to harness marine power are being developed around the world. McIlvaine tracks these projects in Renewable Energy Projects and Update.

Ocean Power Technologies, Inc, a leading wave energy technology company, announced that its utility-scale PowerBuoy® is expected to be deployed in spring 2013 off the coast of Reedsport, OR.

The PowerBuoy, which incorporates a proprietary new direct drive power take off system, will be the first of up to 10 proposed devices that are licensed by the Federal Energy Regulatory Commission for the grid-connected Reedsport OPT Wave Park. The project size of 1.5 megawatts of electricity would be enough to power about 1,000 homes.

On the early morning of September 5, 2012 Poseidon P37 was craned out back into sea to commerce test phase 3. Poseidon will, once towed into position at the test site of Onsevig Harbor, at the north coast of Lolland, Denmark represent nothing less than a world premiere. For the first time ever, a hybrid energy device will deliver power to the grid from wind and waves.

Test Phase 1, conducted 2008/09, had the purpose to document platform stability including the impact of the moving wave absorption floaters on overall platform stability. The test was successful and DTU/Risoe and DHI “green lighted” the installation of wind turbines on the platform.

Test Phase 2, conducted 2009/10, had the purpose to document power to the grid from wind turbines on the floating structure and to document the efficiency of the wave energy absorption floaters expressed as hydrodynamic efficiency to provide background data for the engineering of the final Power Take Off system (PTO)

Test Phase 3, started September 2012 and has the purpose to jointly produce power to the grid – from the wind turbines and wave absorption floaters. The wave absorption floaters are equipped with a new PTO system designed in cooperation with Siemens Industry, Fritz Schur Energy, Contech and others. The PTO system is a closed hydraulic system, where each floater will be an independent energy producing unit. Each float and adjacent PTO system will operate at power levels enabling the use of standard power generation components and each “unit” will be detachable from the platform to allow for easy towing and in-harbor service.

The platform will be re-equipped with wind turbines and the new power module installed. Everything is tested while Poseidon is still in the harbor – one of the beauties for the concept. Once all components and control systems are tested, Poseidon will be towed back to its original position at sea at the Onsevig test site.

RenewableUK, the trade and professional body representing the wind, wave and tidal energy industries, has welcomed the August announcement by the Scottish Government that it will provide nearly £8 million to help fund the testing of five prototype marine energy devices.

The second round of WATERS funding, worth £7.9 million, will be split among five marine energy developers as part of the Scottish Government’s program to accelerate the development of an industry which it says could be worth up to £4 billion by 2020.

It follows a previous announcement that four companies (two wave developers and two tidal developers) will compete for the prestigious £10 million Saltire Prize. This will be awarded by the Scottish Government to the marine energy team that generates the most electricity over a continuous two-year period from the power of the sea, above a minimum target of 100 gigawatt hours. On the same day, a further £13 million of marine energy funding was announced by an agency set up by the UK Government, the Technology Strategy Board, in partnership with Scottish Enterprise.

Bord Gáis and its Irish tidal energy partner, OpenHydro were awarded exclusive rights to develop a 100 MW tidal energy farm off Torr Head on the north coast of Antrim. The project, potentially the first of its kind in the island of Ireland, is expected to be completed by the year 2020.

The award was made by The Crown Estate to Tidal Ventures Ltd. (a joint venture between the two energy companies) as part of Northern Ireland’s Offshore Renewable Energy Strategic Action Plan. Tidal Ventures Ltd, which was established in 2010 with the objective of developing tidal farms, was successful because of the experience of its parent companies in developing large-scale renewable energy projects and specialism in tidal engineering.

RenewableUK, the trade association for the wind, wave and tidal energy industries, has welcomed the opening of Scotland's first Marine Energy Park (MEP).

The Pentland Firth and Orkney Waters MEP is the first in Scotland, and the second in the UK, following the announcement of an Energy Park in the South West of England earlier this year. The Park provides a dedicated space for companies to test and develop their projects. The Pentland Firth and Orkney Waters MEP includes the largest wave and tidal development zone in the world, with the Crown Estate having awarded licenses worth 1.6 GW to developers to take forward projects there. The area will also remain key to the testing of devices, as it includes the European Marine Energy Centre. Since its creation in 2003, EMEC has ensured that developers can deploy prototypes, and determine what more work needs to be done before installing them commercially. EMEC is currently testing nine devices.

Fortum and Sitra, the Finnish Innovation Fund has increased their funding in the wave energy technology developed by the Finnish company AW-Energy Oy. With this funding AW-Energy commences the development of the commercial scale WaveRoller device as well as ensures the completion of operational testing of the 3 x 100 kW demonstration plant recently deployed in Peniche, Portugal.

The WaveRoller is a submerged wave energy converter, based on a hinged panel that is attached to the sea bed in the near shore area. It generates electricity from the back and forth movement of the waves (surge phenomenon) and is connected to the electric grid on the shore. The goal of the development is to commercialize WaveRoller technology and to increase the production of wave energy.

SDE received Letters of Intent, under the current tariff and PPA agreement, from the Gujarat government which promised to help and assist in obtaining all approvals required to construct a sea wave power plant, the Maharashtra government, the Energy Development Agency, the Electricity Regulation Committee (MERC) and the Electric Company of India PTC.

SDE also created partnerships with Indian companies in recent years for the establishment of a sea wave power plant with a capacity of 100 MW

The lack of electricity creates an intolerable air pollution resulting from the use of oil based generators which emits carbon and toxic pollutants into the air.

The unprecedented development of India in recent years and the onset of India's markets around the world have brought great demand in India for electricity.

SDE (S.D.E), a world leader in producing clean electricity energy waves, intends to build the unique power plants along the coast of India, in collaboration with the Government of India and local partner, leading to commercial success of its unique technology.

Year	Cumulative Capacity Million m³/day
2005	40
2010	65
2015	100
2020	160

World Region	2013
Africa	451
CIS	0
East Asia	4,846
Eastern Europe	343
Middle East	109
NAFTA	1,122
South & Central America	0
West Asia	108
Western Europe	626
Total	7,605

Continent	2013
Africa	13
America	161
Asia	147
Europe	88
Total	409