Professional Documents
Culture Documents
BUSINESS & TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY SINCE 1882
Vol. 160 No. 7 July 2016
A COLLABORATIVE APPROACH
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ON THE COVER
July 2016
SPEAKING OF POWER
Powers Environmental Issues Then and Now
GLOBAL MONITOR
Rwandas Power Production Triumph over a Killer Lake
TVA Submits Pioneering Application for SMR Early Site Permit
THE BIG PICTURE: Chinas Power Glut
Chinas CAP1400 Clears IAEA Safety Assessment
One of the Worlds Biggest Biomass-Fired CHP Plants Is Inaugurated
Employing Fuel Cells for Carbon Capture
POWER Digest
8
9
10
12
12
13
14
FOCUS ON O&M
Boiler Tube Failure Thermohydraulic Analysis
16
8
18
20
Early compliance with the Environmental Protection Agencys Effluent Limitation Guidelines (ELGs) for steam electric power generating units has raised
new equipment, monitoring, operational, and labor issues that are proving
challenging for some plants.
Evaluating the Use of CEMS for Accurate Heat Rate Monitoring and
Reporting
24
If the Clean Power Plan survives legal challenges, many plants will be looking
for cost-effective ways to monitor heat rate. Electric Power Research Institute
researchers explain what theyve learned about using continuous emissions
monitoring systems (CEMS) for just that purpose.
12
31
Among the less-familiar consequences of frequent and faster starts at combined cycle plants are challenges associated with fast start of the emissions
catalyst systems, especially given that best available control technology limits
required by regulations are not practical where cycling occurs.
34
34
|
www.powermag.com
37
As with so many other plant functions these days, greater operational complexity in the environmental regulatory compliance realm requires new ways
of working. Real-time data integration and management can offer multiple
benefits.
40
Even renewable energy technologies have environmental impacts. As manufacturers and developers gain experience with wind and solar technologies,
theyre also working to minimize negative consequences.
52
43
Europe, which has a longer history than the rest of the world with renewablesespecially offshore wind and marine power projectsis also a leader
in determining how to minimize danger to creatures on land and in water.
52
The Powder River Basin Coal Users Group gave its top award this year to a
plant recognized for innovation and implementation of best practices and
best available technologies for burning PRB coal.
FUELS
The Coal Refuse Dilemma: Burning Coal for Environmental Benefits
56
Using waste coalwhich has been piling up from hundreds of years of miningas a fuel can reduce the environmental damage these piles create, but
the low-grade feedstock still faces environmental and economic challenges.
56
59
Power market economics in the U.S. have not been friendly to waste-to-energy plants, but new environmental dataas well as state and federal policiescould help spur new growth in the sector.
63
Many plants change fuel sources for environmental and economic reasons,
but unless you understand the consequences of such changes, you could add
new operational and maintenance headaches.
COMMENTARY
Chinas Coal Industry: Status and Outlook
68
By Dr. Niu Dongxiao, Song Zongyun, and Xiao Xinli, North China Electric
Power University
63
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SPEAKING OF POWER
Powers Environmental
Issues Then and Now
iscussions about environmental issues related to power plants and the
regulations governing their operation are as old as the industry, I discovered while thumbing through the bound
July through December 1914 issues of
POWER. The specifics of the environmental concerns have become more detailed
and complex as scientific knowledge,
monitoring technologies, and mitigation
solutions advance. However, the general
argumentsenvironmental control versus
efficiency, for exampleand the human
nature demonstrated in the debates, are
remarkably similar 102 years later.
Legislating Safety
In the early days of the industry, it was a
struggle to get codes and standards and
licensing requirements in place. It really
was a Wild West of boiler operators, and
just as in the Wild West, many diedas a
result of boiler explosions and other catastrophic malfunctions. When an editorial
in Hotel World protested against passing
laws for examining and licensing stationary engineers to handle heating boilers,
claiming that explosions were uncommon,
a POWER editorial countered with the fact
that there had been more than 500 such
accidents in the previous year.
www.powermag.com
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INDUSTRIES SERVED:
Rwandas Power
Production Triumph over a
Killer Lake
Lake Kivu, the 1,040-square-mile killer
lake that stretches over the border between Rwanda and the Democratic Republic of Congo (DRC), has long been a source
of trepidation.
Because it sits between two volcanic
regions in the western branch of the Great
Rift Valley, the deep, perpetually stratified lakes bottommost waters absorb
high concentrations of carbon dioxide
(CO2) from magma-heated springs deep
underground, and microbes convert much
of the CO2 to methane. These dissolved
gases are held in solution by pressures
in the depths of the lake but can emerge
if zones of high concentration move toward the surface, a process known as a
limnic eruption, or overturn. Because
the region is regularly subject to largemagnitude seismic events and volcanic
dischargesand considering that methane has a high partial pressureLake
Kivu is known to experience violent overturns. Geologists believe they occur at
Lake Kivu about every 1,000 yearsand
that the lake is ripe for another.
Limnic eruptions occurred at much
smaller Lakes Monoun and Nyos across the
continent in Cameroon in 1984 and 1986
respectively, killing more than 1,700 people by asphyxiation. But an overturn at
Kivu could be catastrophic and endanger
millions of people living around its shores
on both sides of the border because it
contains far more dissolved gases than
those two lakes.
Rwandas government has for years
sought to extract the methane from Kivus
depths, both to mitigate the risk of such
a calamity and to generate power. Its efforts first came to fruition in 2008, when
the countrys first methane-extracting and
power-producing plant, a 3-MW pilot project, started operations.
Since then, the government has negotiated several methane gas concessions.
Later in 2008, U.S.-based ContourGlobal,
a firm that owns about 4,000 MW of capacity in 20 countries, including in Africa,
entered into a partnership with the Rwandan government to transform the menace
of the lakes gas deposits into a 25-MW
power plant, dubbed KivuWatt. The project subsequently garnered financial backing from the African Development Bank,
the Emerging Africa Infrastructure Fund,
8
1. A killer lake reformed. Methane is drawn from Rwandas Lake Kivu at a depth of 300
meters by a special barge anchored 13 kilometers offshore. Courtesy: Werner Krug
2. Harnessing lake methane. Rwandas KivuWatt power plant runs on methane gas
that is lifted from the depths of Lake Kivu, an exploding lake. The plant comprises three 20-cylinder 34SG gas-powered engines supplied by Wrtsil. Courtesy: Werner Krug
www.powermag.com
www.powermag.com
4,329
hours
4,706
Change from
2012:
hours
5,012
13%
Change from
2012:
hours
6%
Change from
2012:
4,982
64
+1%
GW
hours
47
GW
37
926
GW
52
GW
GW
762
GW
New and
existing
thermal:
71%
of total
installed
capacity
GW
868
826
GW
New and
existing
thermal:
New and
existing
thermal:
67%
of total
installed
capacity
New and
existing
thermal:
66%
of total
installed
capacity
69%
of total
installed
capacity
Estimated
new thermal
capacity*
Existing thermal
capacity
333
385
445
517
2012
2013
2014
2015
1,147
1,247
1,360
1,507
GW
GW
10
GW
GW
GW
GW
www.powermag.com
GW
Total installed
capacity
Non-thermal
capacity
*Figures are drawn from official published data. Totals year
to year may not be consistent with data from previous
years, most likely to due to rounding and retirements of
older generation.
GW
Power is preparing to submit a design certification application for its 50-MW small modular
reactor (SMR) to the Nuclear Regulatory Commission this fall. The SMR developer is the
only one to have an active customer deployment project: The first NuScale facility is due
to be completed in 2024 in Idaho for UAMPS,
a municipal utility. In March, the company
whose primary investor is Fluor Corp.unveiled a modified AREVA HTP-2 fuel design for
the SMR, dubbed NuFuel HTP2. This image
shows a full-scale mockup of the upper part of
a NuScale SMR. Courtesy: NuScale Power
5. A biomass CHP giant. Finnish energy firm Fortum and the city of Stockholm have
inaugurated a new biomass-fired combined heat and power (CHP) plant near Vrtan, a strait in
Swedens capital city. Vrtan CHP8 is one of the largest of its type in the world. Courtesy: Fortum
www.powermag.com
13
6. Game changer? Fuel cells powered by natural gas could potentially function as carbon
capture technology by using power plant flue gas instead of ambient air. Courtesy: FuelCell
Energy
POWER Digest
www.powermag.com
15
causing cyclic fatigue in the tube material. Because the plant was designed for
consistent operation at full load, the
cyclic fatigue was leading to component damage and reliability problems.
The failures resulted in unscheduled
shutdowns, emergency repairs, and unexpected costs.
It was also believed that the delayed
effect of cooling water being supplied
between two adjacent boiler tubes of
different tube banks could be a contributing factor to thermal fatigue failure. The argument presumed that a
column of water from the economizer
outlet would reach the closest tube
bank first, the second bank next, and
so forth. It was alleged that this would
cause a significant fluid temperature
differential between the first banks
outermost tube and the adjacent tube
of the second bank.
To test the hypotheses, a unique oneway fluid structure interaction (FSI)
methodology was developed to model
and predict the induced fatigue loading
during a boiler startup cycle. Fluid flow
and heat transfer was transiently modeled using a 1-D pipe flow modeling tool
supplied by Flownex Simulation Environ-
2. Flownex model validation. The 1-D solver results (denoted as FNX Tc13 through
FNX Tc16) correlated very closely with the data from installed thermocouples (denoted as Tc13
through Tc16). Courtesy: Flownex SE
Tc13 Tc14 Tc15 Tc16 FNX Tc13 FNX Tc14 FNX Tc15 FNX Tc16
300
250
Temperature (C)
typical boiler tube failure location at the Eskom-owned plant. Courtesy: Flownex SE
150
100
50
0
0
10
12
14
Time (hr)
16
www.powermag.com
3. Mapping procedure. A 1-D line geometry created in a computer-aided drafting package was imported into Flownex simulation software to obtain thermal results, which were
exported to ANSYS software for stress analysis. Courtesy: Flownex SE
Plant drawings
Digitize to computer-aided
drafting format
Temperature field
4. Stressed out. Contour plots colored by maximum principal stress at the buckstay junction location are shown here for both cases where the sliding joint plate is present (left) and
removed (right). Courtesy: Flownex SE
Glenn S. Benson
Walker Stanovsky
Securing Pipeline
Infrastructure for GasFired Generation in
New England
ncreased reliance on natural gas as a fuel for electric generation has prompted regulatory reforms by the Federal Energy
Regulatory Commission (FERC) to improve coordination between the two industries. Many in the power industry believe
critical constraints in gas pipeline infrastructure serving New
England pose a significant threat to electric reliability and prices
during periods of peak load in this area. To address this perceived
threat, electric distribution companies (EDCs) in the region have
teamed up with Algonquin Gas Transmission on its Access Northeast pipeline project, which would carry up to 1 billion cubic
feet (Bcf) per day of Marcellus gas to the Northeast. The project
depends on an innovative but highly controversial effort to secure regulatory approvals and financing by relying on the EDCs
balance sheets and subsidization by electric ratepayers.
Approximately 16,000 MW of gas-fired generation are currently
connected to the New England market. Yet few generators have
entered into long-term firm pipeline transportation contracts to
ensure reliable supplies of gas. This means many of them may
be unable to obtain needed gas supplies on peak days or may
have to pay an exorbitant premium to get it, threatening electric
reliability in the region and stable prices for ratepayers due to
limited electric transmission import capability.
Regional grid operator ISO New England has sought to ensure
the reliability of its electric capacity resources on peak days by
adopting strict capacity performance requirements and penalties
for non-performance. This has spurred increased dual-fuel capability by new generators but not long-term firm pipeline transportation agreements. Without such contracts, pipeline projects
cannot be financed and built.
www.powermag.com
G42223/H892/R:42/X4/9822
Rugged communications
for the electric power grid
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CIRCLE 9 ON READER SERVICE CARD
ENVIRONMENTAL ISSUES
Plant wastewater treatment is not what it once was, and changes in the Environmental Protection Agencys effluent limitations guidelines (ELG) have added a host
of new wrinkles. A panel of power plant experts discussed what plant managers are
planning and doing to keep things running smoothly within the new rules.
Thomas W. Overton
both generators and consulting firms convened at the Energy, Utility, and Environment Conference in San Diego to offer
their early thoughts on compliance with the
updated rule.
Where to Start?
Not surprisingly, most generators have already begun compliance efforts, work that
began even before the rule was final. Further, its well understood that ELG compliance will be intimately related to compliance
with the new Coal Combustion Residuals
(CCR) rule (see Coal Combustion Residuals Rule Compliance Strategies in the June
2016 issue or at powermag.com. Bill Skalitzky, manager of generation compliance
for Alliant Energy, noted that his company
has already gone ahead and dredged out an
ash pond at a plant that had been converted
to natural gas. So we already have one of
our ponds secured and closed. Were lookwww.powermag.com
ENVIRONMENTAL ISSUES
ing at a lot of different methods, ranging
from excavating to enclosure; weve been
planning for a few years now.
Jared Morrison, manager, water & wastewater programs for Westar Energy, also
said, Weve been planning for that for quite
some time. But he noted that first steps
varied across different plants (Figure 1). I
think the first activity was trying to understand how we can close surface impoundments and how we can clean them. That
was the biggest issue at those sites. At other
sites, the first activity was understanding the
water balances.
Compliance with the ELGs will require
some substantial lead times for both equipment and the time needed to install it, the
speakers notedin the range of 12 to 18
months.
There are some risks associated with
that, Morrison said, and we are seeing
those lead times get longer and longer.
Though there is a natural impulse to
want to delay capital expenditures, doing
so is risky. Where it is necessary, Block
Andrews, director of strategic environmental solutions for Burns & McDonnell,
recommended working closely with regulators, so they understand your side of
the story.
2. A big zero. The zero-liquid-discharge system supplied by Aquatech for Southern Co.s
Kemper County Integrated Gasification Combined Cycle Plant in Mississippi uses a combination of ultrafiltration, reverse osmosis, conventional demineralization, and thermal evaporation.
Courtesy: Aquatech
3. Just the beginning. Though typical flue gas desulfurization (FGD) wastewater treatment systems produce a certain amount of effluent, as shown here, changes in the Effluent
Limitations Guidelines are creating pressure on generators to move to full zero-liquid-discharge
systems. Source: Siemens
Groundwater Monitoring
The groundwater monitoring required by the
CCR rule can help with ELG compliance,
several noted. Skalitzky said Alliant is installing monitoring equipment at several of
its sites in Wisconsin. We already have some
groundwater monitoring data for constituents
of concern.
Morrison said Westar has been aggressive in assessing its surface impoundments
and installing monitoring equipment.
Those areas where we felt we were at a
pretty high risk of having some sort of hit
that would trigger closure, we went ahead
and closed those prior to the deadline.
Only the impoundments that were viewed
as low risk remained open. We felt that if
they did have an issue, we could respond
quickly to cease using those within six
months. Those impoundments, he said,
were mainly bottom ash.
With respect to groundwater monitoring, Morrison said they have a lot of partial historical data that may or may not
be current because of past monitoring for
various reasons. Were installing wells
today so that we can start our background
samples this year, he said.
Equipment Challenges
Both rules provide pressure to move to bottom ash handling systems that are either
OrganoAlkali sulfide
Ferric
chloride
Polymer
Hydrochloric
acid
Treated
wastewater
Clarification
Equalization
RX1
RX2
Recycle sludge
Gravity
filtration
Sludge
Dewatering
Sludge
tank
Filtrate
sump
completely dry or that use mechanical dewatering. But there is concern about the industrys ability to produce and deploy such
systems in time.
Honestly, this is a concern, Andrews said.
I dont know how many utilities are going to
be approaching these projects, but there is a
limited capacity to address them, maybe 10 or
15 spots in a year, maybe 20, but the suppliers
will need to ramp up to do that. Well see them
step up to the plate, but I would certainly state
that we will see some delays.
www.powermag.com
Filtrate
Backwash reject
Cake
ENVIRONMENTAL ISSUES
wear and tear on the drag chains and the
availability of replacement parts. Weve
looked at a number of things, and in most
cases were going to try to move toward a
totally dry system.
Morrison agreed. The ash transport systems
require a lot of maintenance. Its not something
you enjoy dealing with, he said. We will evaluate the dry system, and if its feasible economically, we will move forward on it.
require a lot of outage time where its possible to prefabricate many of the components.
On one unit, Edgewater Generating Station
(shown in the header photo), he said, We
anticipate its going to take about three days
of changing out some pumps to convert to a
dry system.
Different planning is needed to get various
wastewater streams (for example, from the
flue gas desulfurizer, FGD, Figure 3) segregated so they can be managed under both sets
of rules.
Were looking at putting in some kind
of tank system where we can collect all this
water from the FGDs and utilizing that water back into the scrubber, Skalitsky said.
Were trying to get down, as best we can, to
a zero-liquid discharge, especially on some
of the plants where we have restrictive water
quality systems.
Morrison noted that managing and monitoring these systems requires a lot more attention to minutiae like water flow rates in
the ash-handling system. Thats not historically something that was built in as a concern
at our facilities.
Operational Impacts
Adapting to new methods of handling waste-
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22
www.powermag.com
OCTOBER 46
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ENVIRONMENTAL ISSUES
Power plants are familiar with using continuous emissions monitoring systems
(CEMS) to monitor pollutants, but these devices also may be able to measure
heat ratewhich could be handy for future compliance with the Clean Power
Plan.
Sam Korellis and Chuck Dene
ENVIRONMENTAL ISSUES
1. A continuous emissions monitoring system. Courtesy: EPRI
The key contributor to the high measurement uncertainty was the measurement of
stack gas flow rate.
ENVIRONMENTAL ISSUES
2. Flue gas sample ports and probe. Courtesy: EPRI
Ongoing Work
these individual measurement uncertainties
to the final heat rate result. The results of the
model were used to focus the best practices
guide on the areas responsible for the largest
contributions to uncertainty.
Project results were reported in a best
practices guide for operating, calibrating,
and maintaining a CO2 CEMS and associated
flow monitors to provide the highest degree
of data accuracy practical with currently
available instrumentation and hardware.
Recommendations are included on sampling
systems; analyzers; calibration gases; instrument types, calibration, and placement; stack
diameter determination; and RATA test techniques. (See A Best Practices Guideline for
Understanding and Minimizing Uncertainty
in CO2 and Stack Flow Measurements, EPRI
report no. 3002006147.)
26
ENVIRONMENTAL ISSUES
Now that power plant operators have some experience under their belts related
to Mercury and Air Toxics Standards (MATS) compliance, its time to reevaluate
the options for demonstrating compliance.
Rick J. Krenzke
27
ENVIRONMENTAL ISSUES
Table 1. Summary of PM measurement options. Source: TRC Companies Inc.
Options
Quarterly stack monitoring
Pros
No initial capital expense for
PM monitor and installation. No
maintenance costs.
These monitors, based on a range of analytical detection technologies, can qualify and
quantify target compounds, and when quality assurance and maintenance procedures
for the systems are defined, they can provide
defensible emissions data.
Gaseous monitors are the most common
CEMS, but recent technological advances
Cons
have expanded the availability of PM monitors beyond those used to measure opacity.
Importantly, modern PM monitors can express PM emissions as a concentration, thus
allowing comparison to a PM emissions
limit.
Heres a condensed timeline of PM monitoring development:
1950s and 1960s: The Germans pioneered and began studying PM detection
technologies.
1970s: PM technologies came to the U.S.
in the form of opacity monitors. Opacity
was considered a surrogate for PM and
Performance Specification 1 (also known
as PS1) was promulgated in 1975.
1996: The Hazardous Waste Combustion
MACT rule was the first to require the use
of PM monitors. The need for a performance specification to validate PM monitor data was proposed (PS-11).
1999: The Portland Cement MACT standard mandated PM monitors, but not until
PS-11 was promulgated (2004).
2012: MATS was promulgated, allowing certain PM CEMS detection technologies for filterable particulate matter
(FPM) compliance demonstrations. The
PM monitors could be used as a true PM
CEMS or PM CPMS.
Three Options
Table 1 details the three options for power
CIRCLE 10 ON READER SERVICE CARD
28
www.powermag.com
ENVIRONMENTAL ISSUES
Table 2. Range of costs for purchasing and maintaining PM systems.
Source: TRC Companies Inc.
Option
Quarterly stack monitoring
Task
Cost
$7K$10K
most favorable reporting option. The facility will then need to conduct performance
testing using EPA Reference Methods to
demonstrate compliance with the MATS
PM emission limit.
The next step is to establish a source-specific operating limit. To do this, the facility
will need to perform the following tasks:
ENVIRONMENTAL ISSUES
(new or existing units), this is the operating limit. It may be useful to adjust operating parameters to produce PM emissions
closer to the MATS limit.
If the PM performance test results are below but close or equal to 75% of MACT
limit (new units only are candidates for
extrapolation), there may be no benefit
to extrapolating to 75%. It may be useful
to adjust operating parameters to produce
Many source owners set the source-specific operating limits near the MACT limit
because it provides more room for operational variations, reduces the need for APCD
maintenance, and can avoid costly corrective
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Cost Comparison
In addition to compliance risk, its also important to understand the costs associated
with each of the three approaches described.
Table 2 provides a comparison of the three
options for demonstrating compliance with
the PM standard.
Each of these approaches has advantages
and disadvantages that must be considered
when determining a MATS compliance
strategy. Working with an expert air pollution monitoring firm allows fossil fuelfired
power generators to develop a compliance
strategy based on sound measurement data.
Prudent power generators will capitalize on
the choice that the MATS regulations provide
when determining compliance. The source
can select a surrogate for a class of HAPs
(acid gases and non-Hg HAP metal). The
source can then choose if it wants to comply
by using manual testing methods or a pollutant monitor and, in the case of using PM as
a surrogate for non-Hg metals and using a
PM monitor to demonstrate compliance, the
owner can choose how to use the PM monitoras a CEMS or a CPMS.
The success of any compliance strategy is
proven over time. As more data are generated
and operators understand how fuel variations
and operating parameter changes affect the
compliance status of a unit, the compliance approach and strategy for a facility will be refined.
The U.S. industrial and regulatory communities are investing heavily in the goal
of reducing power plant HAP emissions
through MATS. This investment and subsequent operating history may be creating the
road map for other countries to accomplish
the same goals.
www.goodway.com
CIRCLE 11 ON READER SERVICE CARD
30
www.powermag.com
ENVIRONMENTAL ISSUES
When gas-fired plants are required to cycle more than they were designed for,
added stress on plant components isnt the only consequence. You also
need to pay closer attention to turbine catalyst systems.
David S. Moelling, PE and Daniel W. Ott
Courtesy: Gail Reitenbach
ENVIRONMENTAL ISSUES
1. Conventional baseload vs. cycling operation. Courtesy: Environex Inc.
Conventional baseload unit
80
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Environex Inc.
Exhaust flow (klb/hr/10) Load (MW/10) Turbine exit NOx (ppmvdc) Turbine exit CO (ppmvdc)
ENVIRONMENTAL ISSUES
5. SCR operation for a cycling turbine unit. Variations from cycling operation are
most apparent in the ammonia slip (the unreacted ammonia), shown in red. Variations of 3 to 4
ppm are common. Courtesy: Environex Inc.
70
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without packing and with more heat transfer surface to minimize heating time.
Catalyst designs that offer improved formulations with wider operating temperature windows.
Catalyst frame/seal designs that allow for
more rapid temperature ramp rates.
CEMS systems and NOx analyzers with
faster response capability, as little as 5 seconds compared to 30 to 120 seconds for
extractive sampling systems.
Improved controls systems that are more
capable of analyzing/predicting transients
in catalyst system performance.
www.powermag.com
ENVIRONMENTAL ISSUES
Courtesy: ANDRITZ
When owners of the Big Stone Plant researched air quality control system
technology, they considered all available options and eventually settled on a
design that was not in widespread use. Now that the three-year $384 million
project is complete, they have no regrets that they chose a circulating fluidized
bed dry scrubber.
Robert Puhr
ENVIRONMENTAL ISSUES
1. Big Stone Plants air quality control system. (Left to right) Erik
2. Removing particulate. Fly ash and byproduct from the circulating fluidized bed
scrubber is collected in the pulse jet fabric filter hoppers, shown here. Courtesy: ANDRITZ
ENVIRONMENTAL ISSUES
3. Scrubbing emissions. This image shows the scrubber vessels waste ash pickup
point, including the fluidizing air ring and ash transport lines. Courtesy: ANDRITZ
4. Puffing bags. The air reservoir and pulse valves for the pulse jet fabric filter bag cleaning
system are shown here. Courtesy: ANDRITZ
A Team Effort
There has never been a worry during this
www.powermag.com
ENVIRONMENTAL ISSUES
ENVIRONMENTAL ISSUES
1. Multiple data and access
points. Real-time environmental data management systems (RT-EDMS) serve as the
bridge between islands of data. Courtesy:
Wood Group
Integration Advantages
The growing awareness of the value of Part
75related environmental data, combined
with the lack of connectivity between systems isolated on the process control network, has led to the increased adoption of
middleware solutions. Some DAHS vendors
are creating cloud-based portals that receive
the information from multiple instances of
their monitoring tools in order to provide a
combined view of compliance. Larger utilities have leveraged their existing information systems to provide wider access. These
custom solutions are typically based on connecting data historians (such as OSISoft PI)
to the Enterprise Reporting Planning solution
using commercial middleware packages such
as Microsofts BizTalk.
In other cases, facilities with strict data security requirements or those facing resource
constraints are considering a third option.
These solutions, currently being used in the
refining and petrochemical industry, are optimized for the long-term storage and efficient
transfer of environmental data. Referred to
as real-time environmental data management
systems (RT-EDMS), these solutions act as
custom middleware that provides convenient
interfaces to multiple external systems.
They also allow the processing of data
based on unique environmental reporting
procedures with custom notification capabilities. RT-EDMS serve as the bridge between
islands of data contained within multiple
DAHS. They enable the retrieval of data by
users from multiple locations who might otherwise be restricted from connecting to information stored on the control network. They
also provide information in a format accessible to wider platforms (Figure 1).
RT-EDMS have been successfully fieldproven in many refining and petrochemical
facilities. Users of these systems have consistently shown reductions in time spent compiling custom reports by as much as 90%.
While large power generators might have
sufficient resources to develop custom solutions for complete electronic reporting, our
research indicates that small to midsize generators (of about 1,000 MW capacity) can
especially benefit from these specialized
systems in three distinct ways: enterprise
awareness, anywhere access, and advanced
analytics.
Expanded Awareness Across the Enterprise. Environmental groups and regula-
ENVIRONMENTAL ISSUES
2. Dashboard convenience. A real-time environmental data management system can
provide multiple users with clear access to data from multiple facilities. Courtesy: Wood Group
information with predictive maintenance systems provides another way to more efficiently identify problems with equipment.
among remote facilities. With better connectivity comes the ability to monitor instrument
issues and review warnings to determine if
an immediate trip is necessary or if the issue can be addressed during the next planned
shutdown.
The benefits extend to management as
well. As the trend toward mobile devices increases, having access to software installed
only on a desktop PC significantly limits
the attention that is given to environmental
information. Environmental information on
mobile executive dashboards with current
status, drill-down capabilities and historical
summaries is important to maintain a high
awareness of the importance of environmental performance. Having that information
within familiar tools further facilitates regular review.
Ability to Leverage Advanced Analytics Technology. The exposure of a con-
ENVIRONMENTAL ISSUES
ENVIRONMENTAL ISSUES
1. Clean and clear. Silicor Materials
has developed a manufacturing process for
polycrystalline silicon that uses substantially less energy with no toxic byproducts
by partnering with aluminum smelters. The
company is preparing to build a large factory
in Iceland that will begin operations in 2018.
Shown here are finished ingots of silicon.
Courtesy: Silicor Materials
Raising Awareness
ENVIRONMENTAL ISSUES
3. Double trouble. The San Gorgonio Pass Wind Farm north of Palm Springs, Calif., was
developed beginning in the 1980s. Its closely placed turbines (some with lattice-frame towers) and
above ground transmission lines can pose multiple threats to birds. Courtesy: Gail Reitenbach
On Wings of Eagles
Though raptors (eagles, hawks, and related
species) make up a small portion of the total bird fatalities (the 2013 study mentioned
above estimated 83,000 per year), these
deaths are much more significant because
these birds are typically apex predators and
their population has a direct effect on a wide
variety of other species. Thus, it is not surprising that wind turbine raptor deaths have
garnered most of the attention.
There is evidence that raptors are attracted
to wind turbines as nesting sites, and they are
likely more vulnerable to blade impact because of their habits of staying aloft longer
and floating on thermal patterns while hunting for prey. One oft-cited study estimated as
many as 100 or more raptors being killed at
the Altamont Pass Wind Farm in California
every year, though this high level of mortality
has not been seen at other wind farms.
Some studies have suggested that this dis42
ENVIRONMENTAL ISSUES
ENVIRONMENTAL ISSUES
1. The tide is rising. The 1.2-MW SeaGen tidal power system in Strangford Lough in
Northern Ireland, which began operations in 2008, was the worlds first commercial-scale,
grid-connected tidal stream turbine.Courtesy: Siemens
ENVIRONMENTAL ISSUES
improved site selection, as the international
avian conservation group BirdLife reported
in one of its recent studies, Meeting Europes Renewable Energy Targets in Harmony With Nature (see http://bit.ly/1Y3FDjQ).
According to the BirdLife report, a useful approach is mapping wind resources
(such as speeds and patterns) together with
maps of environmentally sensitive zones,
such as migration corridors and protected
wildlife areas. Doing so can create a practical tool for development decisions based
on the most extensive and up-to-date data.
These can also be useful for policy making
and planning.
Robust and objective baseline studies
are also necessary as part of this process to
minimize negative effects on birds, other
wildlife, and their habitats. They also support
post-construction monitoring at completed
wind farms where environmental concerns
exist. BirdLife and the European Commission studies state that, where at all possible,
energy providers should not develop in areas
with:
Group turbines to avoid alignment perpendicular to main flight paths and to provide corridors between clusters, aligned
with main flight trajectories, within large
wind farms.
Where possible, developers should install
transmission cables underground (subject
to habitat sensitivities and in accordance
with existing best practice guidelines for
underground cable installation).
Developers should mark overhead cables
using deflectors and avoid their use over
areas of high bird concentrations, especially for species vulnerable to collision.
2. Boom times. Erecting offshore wind turbines can create substantial undersea noise
during the construction of foundations and driving of pilings, noise that can have harmful effects
on marine life. Proper mitigation efforts, such as air-bubble curtails, may be able to reduce those
impacts. Courtesy: RWE Innogy
ENVIRONMENTAL ISSUES
which are sensitive to noise and protected by
animal conservation laws, as well as other
marine mammals. Regulators must sanction developers if they repeatedly violate the
noise limit, said Detloff.
While data demonstrate that construction will have effects on mammals and
fish, which can detect pile-driving noises
over considerable distances, there are very
few equivalent data available for birds.
Adequate avian ecological survey data is
generally still unavailable for most offshore areas, according to BirdLife. In order
to remedy this, they recommend, prior to
development, year-round baseline data collection over a minimum of two years for all
affected bird species to cover breeding and
non-breeding distributions.
Solutions and lessons learned to increase power plant performance and profitability
New and proven solutions to meet environmental compliance guidelines
Case studies on technology solutions or advancements
Power plant resiliencyFrom performance management to cyber security and more
Combined Heat & PowerBest practices shared
Grid stability and integration experience or insights
If YES popped into your head while reading this list, we want
to hear from you!
Deadline for submission is August 12, 2016go online
today and submit your abstract for consideration!
www.electricpowerexpo.com
46
www.powermag.com
THE INSTITUTE OF
CLEAN AIR COMPANIES:
Helping You Advance in the Industry
Did you know the Institute of Clean Air Companies (ICAC)
is comprised of more than 65 member companies?
Representing suppliers of air pollution monitoring and
control systems, equipment, and services for stationary
sources, joining ICAC means access to top resources around
the world to help your company thrive in todays markets.
As a membership organization, ICAC provides its members
with the tools to stay up-to-date on the latest industry news
and provides forums for developing technology-focused
white papers, buying guides, and rule comments.
ICAC focuses on collaboration, routinely working with
government, business, public, and private groups to
ensure the industry has an active voice and that its
products and technologies are properly represented and
understood. By hearing all positions regarding air quality
concerns, ICAC members successfully apply technology
to achieve economical technology design, development,
and deployment to address the air quality challenges we
face today. Members also work to address the impacts of
air quality technology on the balance of plant concerns,
including E luent Limitation Guidelines (ELG).
SPECIAL
ADVERTISING
SECTION
Drr
Removing acids from boiler lue gas allows users the opportunity
to proit from the need to operate an air pollution control system.
While traditionally applied technologies are well known,
such as SCR NOx reduction, the secret lies in Drrs low-CAPEX
SCR active Catalytic Hot Gas Filter in combination with the
cost-efective Furnace Sorbent Injection system engineered by
ClearChem Development. Acid-free lue gas liberates steam for
electricity generation while intelligent utilization of the latent heat
of vaporization takes over the heating of the boiler feed water. As
a major result the boiler heat rate is improved, contributing to the
boilers eiciency as well as necessary BSER achievements of the
Clean Power Plan, like CO2 reduction.
Intelligent integration of the Drr and ClearChem technology
in a side stream arrangement of existing air pollution control
equipment, as shown in the above ESP example, can furthermore
help to improve the overall performance by:
SPECIAL
ADVERTISING
SECTION
28269
PRB COAL
Rush Island Energy Center has successfully fired Powder River Basin (PRB) coal
for two decades, as proven by the plants excellent performance stats,
dedication to minimizing its environmental footprint, and sterling safety
record. The PRB Coal Users Group top award recognizes the plant staffs
long-term dedication to continuously improving its safe handling and efficient combustion of PRB coal.
Dr. Robert Peltier, PE
PRB COAL
Environmental Excellence
NOx emissions are managed by overfired air
and a Griffin neural net combustion optimization system. The permit limit for NOx emissions is 0.40 lb/MMBtu, although actual
average annual NOx emissions have remained
below 0.10 lb/MMBtu over the past decade,
without an SCR. For 2015, NOx emissions averaged 0.081 lb/MMBtu. Particulates are captured with an electrostatic precipitator on each
unit (there is no baghouse).
The plants sulfur emissions rely on the
efficient burning of the ultra-low-sulfur PRB
compliance coal. Permitted SO2 emissions are
2.3 lb/MMBtu, although the plants average
annual emissions have tracked under 0.75 lb/
MMBtu for the past 20 years, dipping to below 0.5 lb/million Btu in 2014 as combustion
systems were continuously optimized.
Mercury emissions are reduced by injecting activated carbon upstream of the air
heaters and a mercury continuous emissions
monitoring system analyzes the stack gas.
The plant closely manages opacity exceedances and had only 46 six-minute exceedances in 2014.
The plant operates today with a capacity
factor over 80% and an equivalent availability just short of 90%.
1. Black gold. The Rush Island Energy Center consumes about 5.5 million tons of very low
sulfur Powder River Basin coal each year. The coal pile holds about 1.1 million tons of fuel
enough for 60 to 65 days of operation. Courtesy: Rush Island Energy Center
www.powermag.com
53
PRB COAL
2. Stuck in the middle. The arrangement of the two-unit plant required the two main
fuel transfer conveyors to pass through the common plant stack and through the boiler house
to reach the fuel silos located on the opposite side of the boiler house. Courtesy: Bill Konefes,
PRBCUG
storage area well-groomed. The reclaim system collects coal from the pile and conveys it
to the transfer house, where magnetic metal
separation occurs. Coal is then conveyed to
the surge bin located on each unit, which, in
turn, sends coal to one of the six unit silos. The
B side system, which is virtually identical in
operation, provides redundancy.
The single coal supply incline from the
transfer house to the boiler island contains
two independent conveyor systems (Figure
2). The twin conveyors run through an engineered opening in the stacks shell structure,
through the stack, across the boiler house,
and to the tripper (cascade) floor and the coal
silos. The open conveyors are the cause of
minor combustible dust releases within the
building that are ably handled by the housekeeping staff.
As part of the plants conversion to PRB
coal, conveyor side panels and under-conveyor dribble and sluice pans were installed on
the two conveyors. The side panels prevent
coal particles from escaping into the boiler
house, and the dribble and sluice pans help
capture and direct washdown slurry to a containment area outside the boiler building.
Washing of these conveyors occurs every two
weeks, or more often, as needed.
A crew of 10 laborers are assigned housekeeping duties for the fuel unloading and
delivery systems. The normal practice is to
wash down unloading areas of combustible
dust after each train is unloaded. Washdown
in the fuel unloading area relies on hoses.
Washdowns on the tripper deck with hoses
and a floor deluge system are conducted once
a week. Monthly housekeeping audits are
54
PRB COAL
especially troublesome as PRB coal is more
prone to spontaneous combustion during
coal flow stoppages. Finally, coal conveyors
along with the support structures were retrofitted with automatic fixed sprinkler systems.
For 2016, the plants continuous improvement program is focused on improving plant
operations in two important ways: reducing
boiler fouling and reducing fly ash dusting
originating at coal mill primary air ducts.
Reduce Furnace Fouling. Effective furnace sootblowing is required in order to keep
the furnace tubes clean. Each unit uses 80
steam wallblowers and long retractable blowers (recently increased from 18 to 66) for tube
wall cleaning, a mixture of Copes-Vulcan and
Clyde Bergemann designs. Three additional
long retractable sootblowers are currently
planned for installation on each unit. Steam is
the sootblowing medium of choice.
The Griffin intelligent combustion control system is also used for intelligent sootblowing (ISB). The ISB is principally used
to determine cleaning times and intervals,
although operators must occasionally manually run select blowers to manage steam
temperature control. Periodic load drops are
intermittently required for slag shedding,
particularly during summer months after a
long run ator long periods of operation at
or nearfull load. Online boiler washdowns
are scheduled about twice a year.
Routine maintenance of sootblowers was
problematic, so a few years ago RIEC set up
a dedicated sootblower maintenance shop.
Sootblower availability was greatly improved
as a result of having the dedicated maintenance shop. On the day of the visit, Unit 1
had only three of 80 wall blowers out of service, three more wall blowers were available
for local start only, and only one long retractable sootblower was out of service. On Unit
2, only three wallblowers were out of service.
Reduce Fly Ash Leaks. The plant maintenance staff has been fighting leaks in the
primary air ducts that cause fly ash to be
exhausted into the boiler house for the past
three years. The problem often overwhelms
the plants housekeeping staff because airborne fly ash tends to settle everywhere in
the boiler house, and the turbine deck often
receives a light dusting as well. Recent work
completed on Unit 1 is expected to significantly reduce the dusting problem, and Unit
2 modifications will be completed during the
units next major outage. Fly ash does not
have the fire hazard potential of PRB coal
dust, so the presence of fly ash is principally
a worker respiratory hazard concern.
Ameren Missouris Rush Island Energy Center for being chosen as the 2016 PRBCUG
Plant of the Year! For further information
on RIEC or the plant improvement projects
outlined in this article, please contact Plant
Director Mark Litzinger (314-992-9201 or
mlitzinger@ameren.com). Additional information on the PRBCUG and its awards program is available at www.prbcoals.com.
POWER magazine
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More Information
Congratulations from the editorial staff of
POWER to the management and staff of
Rush Island Energy Center and contributed to this report include Bill Konefes
(Georgia-Pacific and Chairman, PRBCUG);
Andrew Dobrzanski (DTE Energy and
Vice Chairman-Genco); Jim Wiseman
(Wiseman Consulting Services and Vice
Chairman-Industry); Erick Dieperink (Luminant); James Rauba (FM Global); Jeff Kite
(Diamond Power International Inc.); and
Greg Krieser (OPPD Omaha Public Power
District).
25967
www.powermag.com
55
FUELS
1. Breaker boys. This photo from 1911 captures a view of the Ewen Breaker of the Pa. Coal
Co., where boysmost aged eight to 12spent 10 hours a day, six days a week, breaking and
sorting coal, and picking out slate and other impurities, which were then dumped in coal refuse
piles. The record notes that the dust was so dense at times as to obscure the view. Source:
National Archives and Records Administration
www.powermag.com
FUELS
2. The long inferno. Crews spent six months dousing open
flames at the Simpson Northeast coal refuse fire near Fell Township,
Lackawanna County, Pa., in 2014. Temperatures fell into the single digits for almost a month while crews worked. Source: Office of Surface
Mining Reclamation and Enforcement/Department of Interior
1.866.643.1010 ClearSpan.com/ADPO
WE MANUFACTURE WE INSTALL
WE SAVE YOU MONEY
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In its simplest sense, the process entails re-mining coal refuse piles
in accordance with surface mining regulations, and then processing
that material at the mine site by screening to remove rock and other
inert materials. The finer materialtypically 75% or more of the coal
refuseis used as fuel in a fluidized bed combustion boiler or circulating fluidized bed (CFB) boiler. Combustion ash from the boiler
which meets beneficial use criteriais then returned to the mine site
and mixed with unusable coal refuse material as a way of neutralizing
any remaining acidic materials. The materials are then compacted in
place to contours as described in the surface mining permit. As such
the concentration of the acidity as well as the metals such as iron,
aluminum, and manganese in surface and groundwater releases are
significantly reduced, says ARIPPA.
The coal refuseto-power solution was conceived in the aftermath
of the oil embargo of the 1970s. Just as Congress was preparing to
vote for the Public Utility Regulatory Policies Act (PURPA) in 1978,
CFB technology was being developed and showing a capability to
convert lowheating value carbonaceous material (such as coal refuse) into energy.
The first CFB plant designed to convert large quantities of coal
refuse into powerthe 30-MW Westwood Generating Station in
Schuylkill County, Pa.came online in 1987. Eighteen more projects have since been grid-connected, 13 in Pennsylvania alone (Figure 3); two are in West Virginia, one in Montana, one in Utah, and
one in Illinois.
The plants are owned by a diverse mix of companies, including
NRG Energy, Exelon, Olympus Power, Babcock & Wilcox Co., Foster Wheeler, Northern Star Generation, Pacific Gas and Electric, Kimberly Clark, Cogentrix Energy, Olympus Power, Schuylkill Energy
Resources, Waste Management, Southern Illinois Power Cooperative,
and Colstrip Energy. Most power produced is sold in the PJM wholesale and capacity markets. Today, these plantswith a total capacity
of 1,767 MW (see http://www.powermag.com/plants-that-turn-coalrefuse-to-power/ for a slideshow of the plants)have removed a
purported 214 million tons of coal refuse from the environment at no
expense to taxpayers.
But the sector that has been the darling of most coal-producing
statesand lauded even by the Environmental Protection Agency
(EPA)for its potential to eradicate coal refuse piles and reclaim
thousands of disfigured acres is facing new, debilitating challenges.
Lucrative power purchase agreements signed under PURPA are
beginning to expire, forcing plants to compete in the open market.
Fabric Structures
Hybrid Buildings
Foundation Solutions
RESTRICTIONS
MAY APPLY
An Environmental Muddle
Lately, that economic burden has gotten even heavier owing to federal regulatory policies that dramatically and unnecessarily increase
environmental compliance costs, ARIPPA said.
For the coal refuse generation sector, air pollution in particular poses
an environmental Catch-22 with no resolution in sight. The EPA emphasized, when questioned by POWER in May, that coal refuse piles
are a marked environmental worry for their acid seepage and leachate production, spontaneous combustion, and low soil fertility. It also
acknowledged that [u]nits that burn coal refuse provide multimedia
environmental benefits by combining the production of energy with
theremoval of coal refuse piles and by reclaiming land for productive
use. However, the agency underscored, they are still coal-fired power
plants. They still emit hazardous air pollutants that the agency has determined are significant public health disadvantages.
Critics of the niche industry, like the Pennsylvania arm of the Energy Justice Network project, contend that coal refuse plants arent
just inefficient, they also are far more polluting than new coal plants.
The large new waste coal burning power plants planned for western
www.powermag.com
57
FUELS
3. Plying the pile. The 102-MW Colver Power Project in Cambria Countya bituminous
coal mining region in western Pennsylvaniabegan operations in May 1995. The plant, owned
by independent power producer Inter-Power/AhlCon Partners, is equipped with a large circulating fluidized bed boiler. It is one of the states newest bituminous coal refuse power plants.
Courtesy: ARIPPA
FUELS
1. Not just blowin smoke. The Amager Resource Center waste-to-energy plant is
under construction in Denmark, which has banned landfills. The plant has gained notoriety for
integrating an artificial ski slope on the roof and a stack that will blow a water vapor smoke
ring each time 250 kilograms of carbon dioxide are released. Courtesy: Bjarke Ingels Group
www.powermag.com
59
FUELS
2. Full circle. This design for a wasteto-energy facility in Shenzhen, China, includes a rooftop visitors center. Courtesy:
Schmidt Hammer Lassen
3. Clean lines. Ontarios Durham York 15.7-MW waste-to-energy plant burns 436 metric
tons of municipal solid waste daily. Courtesy: Covanta
FUELS
4. Trash power plant target of trash talk. This Maryland waste-to-energy plant has been the target of environmentalists claims that it causes pollution, though it has survived three
decades of environmental reviews. Courtesy: Wheelabrator
FUELS
Nevertheless, opponents of waste-burning
projects repeatedly raise pollution issues, such
as the claims of the Global Alliance for Incinerator Alternatives (see sidebar Maryland Rejects New Baltimore Waste-to-Energy Plant).
DuraSquirt DTIs
www.powermag.com
FUELS
high-temperature superheater or reheater circuits due to a combination of staged combustion and higher FEGT (Figure 1). Low-NOx
burners and overfire air can further exacerbate this situation.
The reducing conditions formed during
staged combustion promote the formation
of hydrogen sulfides and porous metallic
sulfides on the pressure parts of the boiler
or furnace. These sulfide scales are more
porous and less protective than oxides. Reducing conditions also promote carburization of T91 (Figure 2) and stainless steel,
resulting in a loss of corrosion and oxidation resistance.
Although PRB coal contains lower ash
content, it requires higher throughput to
meet full-load conditions. Therefore, erosion problems may be exacerbated because
1. Bridging the gap. Secondary combustion contributes to high furnace exit gas temperatures, resulting in slagging and fouling in high-temperature circuits. Courtesy: David N. French
Metallurgists
www.powermag.com
FUELS
2. A closer look. This image is a microscopic picture showing carburization of T91 steel
tube, which reduces corrosion and oxidation resistance of the material. Courtesy: David N.
French Metallurgists
FUELS
is recommended: at least 75% of weight
should pass through a 200-mesh sieve
(0.0029-inch opening) and 0%0.2% weight
may remain in a 50-mesh sieve (0.0117
inch). Coarse coal tends to increase carbon
carryover and loss on ignition. Reducing the
coal particle size increases the surface area
to mass ratio, effectively making the coal
more reactive. Consequently, improved coal
fineness will improve a plants efficiency
and reduce emissions (see Coal Pulverizer
Maintenance Improves Boiler Combustion
in the December 2015 issue and online at
powermag.com). Inputs to burners should
be accurate and dynamic in response during
load swings.
ing of the pressure parts rather than information-based cleaning. Time-based cleaning
causes several adverse effects on plant performance and reliability. For one thing, additional heat input is required to remove
moisture introduced during the cleaning
process, reducing the plants efficiency. Furthermore, excessive sootblowing of relatively
clean areas causes erosion and fatigue problems, which results in increased maintenance
and reduced reliability.
It is recommended that an intelligent
cleaning system be deployed for boilers to
more efficiently clean the pressure parts
when and where required. The effective
cleaning of furnace tubes solves many secondary problems such as slagging or fouling,
high FEGT, and excessive usage of attemperator sprays. Thermal efficiency and reliability are improved when smart cleaning
systems are used.
Fuel blending or switching can be a sound
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27919
ADVERTISERS INDEX
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KIMA
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CB&I
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 2 . . . . . 1
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Clear Span
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . . . . . . .17
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CMC Solutions
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............................................ 9 ........ 5
Paharpur. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . 6
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Cormetech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 . . . . . . . .10
Siemens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . 9
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TerraSource Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . 2
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67
COMMENTARY
Challenges
Here is a brief summary of some of the coal industrys challenges.
Demand and Supply Decline. For the first 11 months in
2015, the coal supply in China was 3.55 billion tons, declining
by 14.67% compared to 2014. For the first 10 months of 2015,
coal demand was 3.23 billion tons, a drop of 4.7%. The highspeed growth in investment and excessive expansion in capacity
from 2002 to 2012 resulted in unbalance between coal supply
and demand. With continued high levels of coal production even
since 2012, the supply-demand ratio in 2014 reached its peak at
the value of 1.18.
Price Slump. Since 2012 coal prices in China have been on
the decline. The price of coal with a calorific value of 5,500
kcal/kg at Qinghuangdao Port fell by 20.89%, 0%, 13.93%,
and 28.57% each year from 2012 to 2015. The price of coal in
2015 dropped to 370 CNY/ton, which was back to the level it
saw in 2004.
Benefits Shrink. In 2015, more than 85% of coal enterprises
were in a deficit state. Profit declined to 40.08 billion CNY, equal
to the level in 2005. And, according to the latest data from the
China National Coal Association, the average asset-liability ratio
in the coal industry has reached 67.7%the highest level in the
past 16 years.
Investment Declines. Weak coal prices and lower profits have
compressed investment in the industry. Fixed-asset investments
slowed down beginning in 2013. In 2015, investment was 400.8
billion CNY, 14.4% lower than in 2014.
Opportunities
To be optimistic, opportunity coexists with the challenges.
Electric Power Substitution. Electric power substitution
means to substitute electricity for coal burning in end-use
processes. Using electricity can improve coal-use efficiency,
decrease decentralized coal pollution, and rationalize energy
consumption. It can improve the consumption ratio of thermal
coal in total consumption, which will stimulate the rational utilization of coal. Whats more, substituting electricity for decentralized coal use benefits larger and more efficient enterprises
and contributes to eliminating less-modern facilities.
Belt & Road. India and Southeast Asia import large amounts
68
of coal. The Silk Road Economic Belt and the 21st Century Maritime Silk Road (Belt & Road)a development strategy proposed
by President Xi Jinping to increase exports, especially to Eurasiacan increase Chinas coal exports to these countries. In
addition, the infrastructure in some underdeveloped areas like
Africa and Central Asia cant satisfy their needs for economic
development. China can provide them with steel, building materials, and other energy-intensive products, which can stimulate domestic coal consumption and then relieve the pressure
of oversupply. Belt & Road also provides a big chance for coal
enterprises in China to exploit the international coal market and
participate in international competition.
Energy Internet. The energy internet is an energy equivalence exchange and sharing network, which links the coal network, oil network, gas network, and other energy networks by
using information technology, intelligent management technology, to realize energy bidirectional flows. The energy internet is
end userfocused, so those who have the most customers will
win. With the background of an energy internet and electric
power system reform in China, coal enterprises can set up electricity companies and sell electricity. This provides coal enterprises with a chance to dominate both the coal and end users in
energy market.
Support Policies
The Chinese government has issued lists of policies to help
the coal industry recover, which are mainly focused on eliminating backward capacity (polluting, unsafe, inefficient, and
other suboptimal enterprises), controlling the amount of coal
produced (yield control), supporting clean coal development,
and the like. For example, Opinions on Solving Excessive Capacity and Recovering Coal Industry (issued by State Council on
February 5, 2016) indicates that backward capacity that doesnt
conform to industrial policies will be eliminated. Notifications
on Implementing the Treatment Measures on Illegal Coal Mines
(issued by National Development and Reform Commission on May
26, 2015) points out that if thermal power enterprises purchase
coal produced by illegal coal mines, the amount they are allowed
to generate will be reduced, as punishment.
The coal industry in China has suffered from serious depression since 2012, and the tragedy continues in 2016. Fortunately,
the opportunities above have provided great support, and the
coal industry is striving to work its way out of the depression.
The coal industry in China still has bright prospects.
Niu Dongxiao, PhD, a professor at North China Electric Power
University (NCEPU), has been named distinguished Cheung
Kong Scholar by the Ministry of Education and has outstanding
achievements in the field energy management, load forecasting, energy system evaluation, and more. Song Zongyun and
Xiao Xinli are doctoral students in the School of Economics and
Management, NCEPU.
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