Environmental

If Hollywood were scripting the power industry story for 2011, it would be a sequel to 2010—more of the same, but just not quite as good. Natural gas gets top billing and the accolades, wind power drops to a supporting role, and new nuclear answers the casting call but has yet to get a speaking part. Coal is like Mel Gibson—a talented Oscar winner unlikely to get another leading role. In this, our fifth annual industry forecast report, the story may be familiar, but the price of admission is going way up.

The Electric Power Research Institute (EPRI) has identified four breakthrough technologies and funded them through its Strategic Research and Development Portfolio. EPRI expects to accelerate development of these innovations because they are likely to have significant effects on how electricity is generated and delivered.

European carbon trading is gradually pushing down coal-fired capacity factors, and operating costs are rising. The U.S. may not have a carbon market, but increasing regulatory requirements are having the same effect on coal-fired generation capacity factors and operating costs. In the meantime, gas-fired assets are enjoying increased usage and lower unit costs.

For more than a decade Babcock & Wilcox Power Generation Group Inc. and Air Liquide have been developing oxyfuel technology with the goal of using it to concentrate CO₂ from pulverized coal-fired power plants and achieve up to 90% CO₂ capture and storage. This technology was recently selected for demonstration as part of FutureGen 2.0.

It’s been almost three years since the U.S. Court of Appeals for the D.C. Circuit issued its decision vacating the Environmental Protection Agency’s (EPA) Revision Rule and the Clean Air Mercury Rule. Since then, the utility industry has been in a holding pattern with respect to the control of hazardous air pollutant (HAP) emissions.

A long-awaited Clean Air Act regulatory guidance document released by the Environmental Protection Agency recommends that state air regulators strongly emphasize energy efficiency in determining the most cost-effective and technically feasible greenhouse gas control technologies that must be used by utilities and other major industrial emitters when expanding existing facilities or building new ones.

With utilities already alarmed by looming federal regulations that could force construction of expensive cooling towers that would sharply increase water use, a report by the Energy Department’s Argonne National Laboratory warns that nearly 350 U.S. coal-fired power plants are vulnerable to potential water demand or supply conflicts over the next 20 years stemming from increased competition for dwindling water resources—particularly in the Southeast.

While U.S. coal production has been stagnant in 2010, demand for coal in China and India has sharply risen this year and could represent the early stages of a "long-term supercycle" for the global coal industry, according to Peabody Energy, the world’s largest private coal company.

Energy efficient and environmentally responsible dry bottom ash technologies will soon be required by regulation. Progressive companies will bring their plants into compliance early because it’s a good business strategy. Here are your compliance options.

The pilot-scale project at Georgia Power’s Plant Yates near Newnan, Ga.—the first step in one of the industry’s largest demonstrations of a start-to-finish coal-fired power plant carbon capture and storage system—reached a significant milestone this September, capturing the greenhouse gas for the first time.

In August, researchers from the University of Cincinnati who are working on creating an artificial foam that could absorb carbon dioxide (CO₂) from the flue gas at power plants and convert it into biofuel won the grand prize at the 2010 Earth Awards in London.

The U.S. Nuclear Regulatory Commission (NRC) approved an updated “waste confidence” rule in mid-September that reflects the agency’s confidence that spent nuclear fuel (SNF) can be safely stored for at least 60 years beyond the closing date of any U.S. nuclear plant. Approval of this rule was required before the NRC can license any new reactors that will be required to store SNF on site indefinitely.

Much like the shape-shifting substance it regulates, the mercurial enforcement rule that governs mercury emissions from coal-fired power plants has changed unpredictably several times in recent years.

The University of California, San Diego has been accumulating awards for its savvy use of a constellation of power generation and energy-saving technologies. The campus already controls a fully functioning microgrid—including a cogeneration plant—and, as befits a research institution, is constantly looking for new ways to make its energy system smarter. This “living laboratory,” as campus leaders like to call it, demonstrates what it takes to build a smarter grid and why the effort is worth it.

Pending Environmental Protection Agency regulations to slash U.S. power plant emissions likely will lead to the closure of nearly 18% of the nation’s coal-fired generation capacity, trim demand for steam coal by 15% to 31% and boost demand for natural gas by 8% to 16%, a new Credit Suisse analysis concludes.

Responding to looming federal regulations to reduce power plant pollution, the Tennessee Valley Authority’s board signed off on a proposal to shut down 1,000 MW of older coal-fired generation and replace it with an equal amount of natural gas capacity while also pursuing 1,900 MW of demand response and energy efficiency programs and adding 1,140 MW of new nuclear generation by 2015.

An Environmental Protection Agency plan to tighten emission limits for new and existing industrial boilers has sparked alarmed protests from the biomass generation industry and electric utilities, who say the proposed regulations are so onerous they threaten to shut down existing biomass power plants and already are chilling deployment of new facilities.

The conventional and oft-repeated truth is that wind generation directly reduces carbon emissions. Challenging the conventional wisdom has drawn much criticism from wind proponents, but the latest research has shown that wind has had, and will continue to have, negligible impact on the nation’s carbon emissions. The data are convincing and can no longer be ignored.

Wind electricity production must displace some existing generation. However, its relentless variability imposes daunting challenges for wind integration. Clever engineering schemes can mask the problem, but the data show that wind generation has and will continue to reduce carbon by negligible amounts, but at great expense.

This summary of results from a recent Platts/Capgemini survey of North American utility executives looks at what respondents had to say about all things related to the smart grid. Nearly half of respondents’ utilities have a smart grid strategy in place, while the other half said their utility has one in development.

An Environmental Protection Agency proposal to tighten sulfur dioxide and nitrogen oxides limits in 31 states and the District of Columbia to address transported air pollution fails to give utilities and state air regulators sufficient time to develop rules and install controls, according to American Electric Power Co. Officials from the EPA and New Jersey-based Public Service Enterprise Group said utilities already had begun making investments to cut emissions and they believed the agency’s compliance schedule could be met.

Many claim that wind generation is beneficial because it reduces pollution emissions and does not emit carbon dioxide. This isn’t necessarily the case. When wind is introduced into a generation system that uses carbon technologies to back up the wind, it actually reduces the energy efficiency of the carbon technologies.

Scuttling a high-profile “public nuisance” lawsuit, a federal appeals court has reversed a lower court ruling that required the Tennessee Valley Authority to accelerate plans to install pollution controls at four TVA coal-fired power plants to reduce the amount of pollution blowing into western North Carolina, saying the lower court decision could lead to other public nuisance suits that would wreak havoc on federal and state regulatory regimes for combating air pollution.

Saying they have “grave concerns” about the agency’s two-option proposal to regulate coal combustion ash, 31 members of the House Energy and Commerce Committee have urged the Environmental Protection Agency to continue to regulate coal ash as a non-hazardous waste, saying an EPA proposal to designate it as a “special” hazardous waste eligible for reuse would lead to costly and unnecessary management and disposal requirements.

Catalysts used in selective catalytic reduction (SCR) systems in utility boilers provide high NO_x removal efficiencies that routinely exceed 90%. A major co-benefit of applying SCR to coal-fired power plants is that the SCR catalyst also oxidizes the vapor phase mercury from an elemental form to a soluble ionic form, which can be readily captured in a downstream flue gas desulfurization process. Mitsubishi Heavy Industries and Cormetech have developed an advanced SCR catalyst technology with high mercury oxidation activity capable of achieving 95% oxidized mercury over a wide range of operating conditions.

Luminant used remnants of the ill-fated Twin Oaks and Forest Grove plants (which were mothballed more than 30 years ago) to build the new two-unit 1,600-MW Oak Grove Plant. Though outfitted with equipment from those old plants, Oak Grove also sports an array of modern air quality control equipment and is the nation’s first 100% lignite-fired plant to adopt selective catalytic reduction for NO_x control and activated carbon sorbent injection technology to remove mercury. For melding two different steam generators into a single project, adopting a unique and efficient “push-pull” fuel delivery system, assembling a tightly integrated team that completed the project on time and within budget, and for completing what was started almost four decades ago, Oak Grove Power Plant is awarded POWER magazine’s 2010 Plant of the Year award.

With commercial operation of Madison Unit 3, Cleco Power now claims bragging rights for owning the largest 100% petroleum coke–fired circulating fluidized bed power plant in North America. For using readily available fuel in an environmentally attractive manner, adopting fuel-flexible combustion technology, balancing the utility’s generation portfolio, and adopting an innovative fuel-handling system design, Madison Unit 3 is the winner of POWER’s 2010 Marmaduke Award for excellence in operation and maintenance. The award is named for Marmaduke Surfaceblow, the fictional marine engineer and plant troubleshooter par excellence.

In April, Solvay Chemicals Inc. commissioned a new facility that uses an innovative process to recover and transform sodium carbonate waste streams into a market-grade sodium bicarbonate used in air emissions control.

A federal judge recently dismissed a lawsuit in which the plaintiffs alleged that defendants’ production of chemicals and electricity had “added to the ferocity of Hurricane Katrina.” The judge’s reasoning reveals the inherent limitations of courts unilaterally initiating policies to address climate change issues.

It’s no surprise that China leads the world in recent power capacity additions. What may surprise you is the precise mix of options this vast country is relying upon to meet its ever-growing demand for electricity. As a result, this ancient civilization is fast becoming the test bed and factory for the newest generation and transmission technologies.