Oil Price Fall Will Boost Gas Turbine Purchases
The lower prices for oil ultimately translate into lower gas prices which, in turn, encourage retirement of coal-fired power plants and replacement with gas turbine generators. Lower gas prices also have a negative impact on sales of wind turbines and solar power plants. These trends are continually tracked in several McIlvaine services. (www.mcilvainecompany.com)
Europe and the U.S. have a number of coal-fired power plants which are candidates for retirement. One option taken by Europe is to replace the old coal-fired power plants with new ones. The U.S. has eliminated this option and is faced with upgrading 50 year old power plants or retiring them.
Gas prices in the U.S. are projected to be around $4/MMBtu in 2015. This price is already the basis of the present plans for most generating companies. However, if the price fell to $2/MMBtu with any assurance that the level would remain this low for a decade, then there would be a large number of coal-fired power plant replacements.
There are a number of factors which impact gas prices. Despite record high production levels, U.S. gas inventories are still 0.24 TCF (trillion cubic feet), or 6 percent lower than last year’s inventory levels and 0.26 TCF, or 7 percent lower than the five-year average (2009-13). If this winter is anything like the previous one, prices might spike. But the EIA projects lower residential and commercial demand based on milder temperature forecasts and higher forecasted natural gas prices.
The price of oil has a powerful effect on gas prices because one can be substituted for the other. However, there are some exceptions. The U.S. cannot easily export gas and so the price in the U.S. is not reflective of world oil or gas prices.
Another aspect is the relative value of the dollar against the yen, euro and other currencies. Oil prices are tracked in U.S. dollars. When the dollar rises against other international currencies then oil prices fall. (You can exchange dollars for more euros and buy more oil.)
In general, the low gas prices are creating optimism among suppliers of equipment and services. Gas turbine suppliers are anticipating industrial gas turbine sales of more than $40 billion per year over the next fifteen years.
Component suppliers are also optimistic. Donaldson anticipates its gas turbine sales will increase 25 to 30 percent due to an expected improvement in the large turbine power generation market. This forecast includes $17 to $20 million from the Northern Technical acquisition, which was completed in September.
The markets for gas turbines, coal-fired power plants and nuclear generators is tracked in N043 Fossil and Nuclear Power Generation: World Analysis and Forecast
The specific gas turbine markets are tracked in 59EI Gas Turbine and Combined Cycle Supplier Program.
Oil and gas activities are tracked in N049 Oil, Gas, Shale and Refining Markets and Projects
Renewable Energy generation is tracked in N042 Renewable Energy World Markets
Western Europe Industrial Valve Purchases to Exceed $8.6 Billion Next Year
Western European countries will spend $8.6 billion for industrial valves in 2015. This total is the aggregation of more than 20,000 individual forecasts in Western Europe Industrial Valve Market and Sales Guide.

This report has the level of detail to allow marketing managers to prioritize the advertising and exhibition expenditures. Sales managers can set quotas and targets for the individual countries and even for specific products. For example, this is the level of detail just for ball valves in Austria:
Ball Valve Forecasts for Austria in $ Millions
Industry Classification 2014 2015 2016 2017 2018 2019
Chemical Control 0.17 0.17 0.17 0.18 0.18 0.18
Chemical On/Off 3.17 3.22 3.28 3.34 3.41 3.48
Electronics Control 0.02 0.02 0.03 0.03 0.03 0.03
Electronics On/Off 0.46 0.47 0.49 0.51 0.52 0.54
Food Control 0.10 0.10 0.10 0.10 0.10 0.10
Food On/Off 1.84 1.86 1.88 1.91 1.93 1.97
Iron & Steel Control 0.15 0.15 0.16 0.16 0.16 0.16
The report can be utilized as part of a complete supplier program with identification of specific projects. Here are gas turbine opportunities in Germany:
Location Comment Project Title Startup Date
Baden Wurttemberg Karlsruhe CHP CCGT - Trianel/MiRO Refinery
2020
Berlin Klingenberg CHP CCGT - Vattenfall
2016
North Rhine Westphalia Krefeld Uedingen CHP CCGT - Trianel
2019
North Rhine Westphalia Lausward CCGT - Stadtwerke Dusseldorf
2018
North Rhine Westphalia Leverkusen Chempark CCGT - Repower AG
2018
Berlin Lichterfelde CHP CCGT - Vattenfall
2016
Hesse state Ludwigsau CCGT - Dong Energy
On hold
North Rhine Westphalia Niehl 3 CHP CCGT - RheinEnergie
2016
Brandenburg Premnitz CCGT - Alpiq
On hold
Bavaria UPM Schongau CHP CCGT - UPM
2015
Brandenburg state Wustermark CCGT - Advanced Power AG
Cancelled

For more information on Western Europe Industrial Valve Market and Sales Guide, click on New Valve Market Reports Just Released!
Renewable Energy Briefs
Montana-Dakota Utilities Signs Agreement to Purchase North Dakota Wind Farm
Montana-Dakota Utilities Co., a division of MDU Resources Group announced that it has signed an agreement to purchase a North Dakota wind farm to be developed by ALLETE Clean Energy, a subsidiary of ALLETE, Inc.
The wind project, located near Hettinger, N.D., and comprised of 43 turbines producing 107.5 megawatts of electricity, is anticipated to be completed in December 2015. The project’s cost is approximately $200 million and the purchase is subject to regulatory approvals.
Montana-Dakota originally signed a power purchase agreement with Thunder Spirit Wind in October 2013 to purchase the output of the wind farm. Montana-Dakota determined that owning and operating the wind farm is the best long-term solution to meet customer need for energy. Montana-Dakota partnered with ALLETE Clean Energy (ACE) on an agreement for ACE to acquire the Thunder Spirit Wind project, complete the development and sell the completed project to Montana-Dakota. ALLETE has developed other wind projects in North Dakota.
First Wind Closes Financing on Second Project in Texas with MUFG
First Wind, an independent U.S.-based renewable energy company, announced that it has obtained $254 million in financing for its South Plains Wind project in Floyd County, TX. With financing successfully in place, First Wind was able to advance its second renewable energy project in Texas by finalizing an order with Vestas for 100 V100 turbines with a capacity of 2 megawatts (MW) each.
South Plains Wind Energy, LLC, a subsidiary of First Wind, closed on a $254 million financing agreement for the South Plains project. Mitsubishi UFJ Financial Group has committed tax equity for the project. BayernLB is providing term debt financing for the project.
The South Plains Wind project is located on approximately 51,000 acres in Floyd County, northeast of Lubbock, TX. Once complete, the project is expected to deliver power to the ERCOT (Electric Reliability Council of Texas) power markets through the CREZ (Competitive Renewable Energy Zone) transmission system, and will have the capacity to generate 200 MW of cost-competitive, clean energy.
Yingli Green Energy to Power Europe’s Largest Solar Plant
Yingli Green Energy Holding Company Limited, the largest vertically integrated solar panel manufacturer in the world, known as "Yingli Solar", announced that it has signed a landmark agreement to supply 120 MW of YGE 72 Cell solar panels for a 300 MW project in France. Upon completion this will be the largest solar power park in Europe.
According to the agreement, Yingli Solar will ship more than 393,000 multicrystalline panels between December 2014 and June 2015. The solar park located in Cestas in the South West of France, covering 250 hectares of land divided in 25 solar plants, is expected to be connected to the grid in October 2015.
The 360 million Euro project is being developed by Neoen, a leading independent French power producer. For the engineering and construction, Neoen and the project's other investors contracted with a consortium of local companies, including Eiffage-Clemessy and Schneider Electric.
Trina Solar Signs 10 MW EPC Turnkey Solutions Agreement with Shamsuna Power in Jordan
Trina Solar Limited, a global leader in photovoltaic (PV) modules, solutions, and services, announced that it has entered into an agreement for the design, build and operation and maintenance of the 10 MW Shamsuna Solar Project in Aqaba, Jordan with Shamsuna Power Company.
Foursan Capital Partners will hold a 85 percent stake and Shamasuna Power will hold a 15 percent stake in the project, respectively. The project is being financed by International Finance Corporation (IFC) and a small syndicate of lenders. Construction of the project is scheduled to commence in December 2014 with completion and grid connection expected in the second quarter of 2015. Once the plant is completed, Trina Solar will provide Operation and Maintenance services on the project based on a 5 year service agreement with a possible 5 year extension upon mutual agreement.
The solar farm, located in the Aqaba Special Economic Zone, southeast of Aqaba, Jordan, will utilize 40,320 of Trina Solar's 250Wp TSM- PC05A modules. Once operational, it will be the largest solar farm in Aqaba, Jordan. All output generated by the project will be sold to Jordan's National Electric Power Company (NEPCO) under a 20-year Power Purchase Agreement backed by a full sovereign guarantee from the Government of Jordan. The project will generate over 19 GWh of power annually helping to meet the growing demand for electricity in Jordan and reducing carbon emissions by approximately 11,500 tons per year.
Canadian Solar to Supply 4 MW Energy Storage Solution to Support the Ontario Grid
Canadian Solar Inc. announced that its wholly owned subsidiary, Canadian Solar Solutions Inc. will provide 4 megawatt (MW) / 2.76 megawatt/hour (MWh) of stationary on-grid bulk energy storage to Independent Electricity System Operator ("IESO") to support the Ontario grid.
The 4 MW project will provide an energy storage solution for ancillary services applications in Ontario by leveraging Canadian Solar's extensive project development expertise and success in the Canadian energy market. In addition, this project was one of twelve selected by IESO in a competitive application process that was completed in July 2014. Canadian Solar will be providing reactive power, voltage support and bulk energy storage services to the IESO using stationary lithium battery technology. Canadian Solar will provide operations and maintenance to IESO for a period of 36 months.
For more information on Renewable Energy Projects and Update please visit http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
Headlines for Utility E-Alert –December 5, 2014
UTILITY E-ALERT
#1202 – December 5, 2014
Table of Contents
COAL – US
• EPA proposes SO2 Reductions in Texas
• Supreme Court will Review Mercury and Air toxics rules
• TVA preliminary Report says FGD and SCR at Shawnee 1 and 4 is Preferable to Closure
• EPA Proposes 65 to 70 ppb Ozone Standard
• Massive Number of comments to EPA's Plan to Limit CO2 from Power Plants
• Fate of Cayuga Power Plant still in Limbo
• Alabama Power to increase Rate in 2015
COAL – WORLD

• Co-Ash Resources to build 1000 MW Waste-Coal-fired Power Plant in Zimbabwe
• Will more Coal-fired Power Plants Close in Germany?
• Morocco adding Coal-firing Power Plants to Reduce Imports of Electricity
• Thailand to build Power Plants in Krabi and Songkhla Provinces
• Engro Powergen to develop 2x330 MW Power Project in Pakistan
• North Korea building Power Plant near Pyongyang
• AP Genco to build 4000 MW Power Plant in Srikakulam, Andhra Pradesh, India
• Nationwide Blackout in Georgia
• Andaro Energy and China Shenhua will develop 2x300 MW Power Plant in East Kalimantan, Indonesia
• Iran to Develop Coal-fired Power Plants using Indigenous Coal
• Protests against Kudgi Power Project in India
• Coal India’s 2x800 MW Hemgir Supercritical Power Plant in Sundargarh, Odisha, India
• Sumitomo to build 4000 MW Supercritical Power Plant in Srikakulam District, Andhra Pradesh, India
• Raw Material Shortage puts Salboni Steel, Power and Cement project in West Bengal (India) on Hold
• Edenville Energy still committed to Tanzania Power Plant Project
• 448 MW Oxyfuel Combustion Power Plant with CCS planned at Drax in UK
• Jacobs Engineering is Owner’s Engineer for 300 MW CFB Power Plant in Barangay Bato, Philippines
• India allocating Coal for Proposed Allahabad Power Plant
• Alstom to build SCR system for 210 MW Plomin 2 in Croatia
• NTPC changing Ramagundam Power Plant Expansion to 2x800 MW
• Aboitiz to expand Cebu and Davao Power Plant in Philippines

GAS/OIL - US

• Black & Veatch to build Oregon Clean Energy Center in Ohio
• NTE Energy has Permits for 500 MW Power Plant in Butler County, Ohio
• CPV to build 900 MW Pondera King Energy Center in Houston
• 400 MW Expansion fo Fox Energy Center in Wisconsin
• Construction begins at 725 CPV St. Charles Energy Center
• LS Power to build 450 MW Peaking Power Plant in Methuen, MA
• Iberdrola to build Combined Cycle Power Plant for Footprint Power

GAS/OIL - WORLD

• Jindal Steel and Power cancels Coal-to-Liquid Plant in Odisha, India
• Financing for 950 MW Kirikkale Combined Cycle Power Plant in Turkey
• Construction to begin in January on 450 MW Azura-Edo Gas Turbine Power Plant in Nigeria
• India exploring Gas-based Power Generation
• 600 MW Combined Cycle Power Plant in Plock, Poland
• Pakistan to use LNG to produce an Additional 2600 MW by Summer of 2015
• Construction of Genesee 4 and 5 (Alberta, Canada) to begin in 2015
• 950 MW Combined Cycle Project in Kirikkale, Turkey

NUCLEAR

• Westinghouse nearing Deal to build Nuclear Power Plant in Turkey
• Feasibility Study Complete for Ninh Thuan 1 Nuclear Power Plant in Vietnam
• WYG to provide Engineering support for Nuclear Power Plant in Poland
• Fortum to invest in Fennovoima Nuclear Power Plant
• UK gives Financial Guarantee for Nuclear Power Plant in Moorside
• Akkuyu Nuclear Power Plant in Turkey moves forward
• Nuclear Power approved for Ghana

BIOMASS

• Alstom ESPs for Pécs Biomass-fired Power Plant in Hungary

BUSINESS

• Huge but Changing Power Plant Air Pollution market in china has $100 Billion Potential
• Total FGD Market Much bigger than $3.4 billion Forecast
• MET announces Licensee WFGD Award in China
• URS introduces New HBS Injection™ Mercury Control Technology
• Brazil planning Almost 5 GW of New Electric Power
• E.ON to Split into Two in 2016

HOT TOPIC HOUR

• Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on: http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei


“Boiler Feedwater Treatment” Thursday, December 18, 2014, at 10:00 a.m. CST

Water sourcing issues, increased pressures for energy efficiency, and advanced boiler designs make management and treatment of boiler feedwater even more important for today’s power plant operators. With increasing Federal and State regulations limiting access to surface and ground water, minimizing water usage becomes an important factor in the selection of water treatment methods. Optimum treatment will help prevent chemical and flow corrosion in boiler water, steam and condensate systems and elimination of scale. Prevention of corrosion and scale, in turn, helps to ensure maximum life of boilers, steam turbines, condensers, and pumps, reduces maintenance expenses and allows optimal thermal performance providing greater efficiency.

There are a wide variety of water treatment systems available, but which system is most economical for a specific plant considering energy requirements, chemical costs and performance. This decision is partially dictated by the minerals in and chemical and physical composition of the raw water. In general, raw water from lakes, rivers or wells is treated by aeration, coagulation, filtration and softening all well established processes. However, shortages of natural raw water from the traditional sources, the “greening “ of power plants and increasing stringent regulations on disposal of water into surface waters or even holding ponds are now forcing plants to consider reusing their process water or even using treated wastewater from municipal sources. This adds a new dimension to the problem of properly treating water before adding it as make-up water in the boiler feed systems. Process and wastewater contain even more contaminants and many at higher concentrations than typical natural water.

Panelists will discuss the latest technologies available or under development to treat boiler feedwater from natural, process and waste sources with emphasis on chemical usage, water usage, and typical water quality that can be achieved using these technologies. They will discuss how to reduce the consumption of chemicals and water while achieving better water quality and lower operating costs and present the economics of various treatment technologies focusing on energy use, chemical requirements, capital costs, use of process or wastewater and operation and maintenance costs and issues.
Panelists for Boiler Feedwater Treatment:
Ken Pandya, President, AWTS Inc.
Michael Dejak P. E., Vice President – Global Business Development, Eco-Tec Inc.
Chris Bell, Ovivo USA, LLC,
Ram Karlapudi, Pall Industrial - Process Systems
Click here for the Subscriber and Power Plant or Cement Plant Owner/Operator Registration Form
Click here for the Non-Subscribers Registration Form
McIlvaine Hot Topic Hour Registration
On Thursdays at 10:00 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 of Power Plant Air Quality Decisions and Utility Tracking System. The cost for others is $300.00 per webinar.
See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.
DATE SUBJECT DESCRIPTION
December 18, 2014 Boiler Feedwater Treatment More Information
January 8, 2015 Fabric Selection for Hot Gas Applications More Information

January 15, 2015 Valves for Gas Turbine and Combined Cycle Plants More Information

January 22, 2015 FGD Components Including Blowers/Compressors More Information

January 29, 2015 MATS Compliance Choices More Information

February 5, 2015 Gas Turbine Regulatory Drivers More Information

February 12, 2015 Coal Gasification Air Pollution Control More Information

February 19, 2015 Mercury Measurement and Capture More Information
February 26, 2015 Power Plant Wastewater Treatment More Information
March 5, 2015 Dry Scrubbing and DSI More Information
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You can register for our free McIlvaine Newsletters at: http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5

Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com