Even if you've never been in the market for a scrubber, you don't have to face management and vendors as a greenhorn. Thanks to the EUCG, you can enter meetings with valuable information about other utilities' costs—and how much your costs could rise between a scrubber's planning and operational phases.
The EUCG is an association of electric utility professionals that provides a forum in which utilities can improve their O'M practices and construction performance. Now in its 24th year, the EUCG holds technical conferences and workshops twice yearly for the purpose of information exchange. The organization (formerly known as the Electric Utility Cost Group) is organized into committees and working groups by interest area, such as fossil, nuclear, and hydroelectric plants; transmission and distribution; financial management; and, the latest—IT.
One of the EUCG's key activities is developing process and market benchmarks, unit reliability strategies, and best-practice applications to foster performance and cost excellence within the utility industry and competitive markets. The EUCG's Fossil Productivity Committee (FPC) has 32 electric utility members reporting operating data on more than 300 individual coal-fired units. That number represents more than 30% of operating coal plants in the U.S., so the data can be considered representative of the entire U.S. fleet.
FGD benchmarks
The need for flue gas desulfurization (FGD) began, as so many industry changes do, with the feds. The Clean Air Interstate Rule (CAIR), issued in early 2005, targeted 28 eastern states and the District of Columbia for significant SO2 and NOx reductions. When fully implemented, the EPA notes that SO2 emissions will be reduced by 70% from 2003 levels. In fact, EPA projections show SO2 will be reduced by 45% by 2010. Early estimates by the EPA (2004) placed the annual cost of CAIR compliance at around $2.9 billion in 2010 and $3.7 billion in 2015 for 49 GW worth of scrubbers.
The power industry has responded to CAIR with numerous major investments in FGD and selective catalytic reduction systems. In fact, demand has been so high that many vendors now find themselves unable to provide equipment to those arriving late to the party.
The FPC of the EUCG, responding to members' requests, designed and collected survey data on FGD technology and costs so members can benchmark their own facilities. The survey was conducted in early 2007, and detailed database results were provided to survey participants in March. The top-level results of that survey are presented exclusively to the readers of POWER as a service to the entire power industry.
The survey results have to be interpreted with a close eye to the peculiarities of each project site, and there are numerous factors that will influence costs and schedules. That said, it's not a surprise that costs are rising and competition for production slots in key vendor shops is keen. However, there are industry trends associated with FGD projects that may prove useful to those considering similar projects. Our purpose is to report on those trends and let you interpret the data in light of the complexities of your emissions compliance program.
Email
Comments
Print
Reuse
