I recently participated in the 11th annual EUEC (Electric Utilities Environmental Conference) which was held in Tuscon, Arizona. Attending – and presenting at – the conference gave me a good idea of what power generators perceive as their most pressing and immediate challenges: NOx (nitrogen oxide), Hg (mercury), and climate change.
Mixed Results on Mercury Solutions
The good news is that many generators reported favorable initial results with mercury CEMs (continuous emissions monitors). But one piece of unsettling information was EPRI’s (Electric Power Research Institute) summary of experience with respect to Hg removal and the “co-benefits” of the SCR-FGD combination. EPRI’s analysis indicates that only four of 20 plants studied were able to meet the 90% removal rates required by an increasing number of states. In my travels, it seems like 9 out of ten industry people I talk with who are facing these removal requirements are counting on these SCR-FGD co-benefits to achieve 90% removal.
With mercury issues stealing much of the show, it’s not surprising that more than 100 people attended Steve Piche’s presentation on NeuCo’s DOE CCPI Round II project at NRG’s Limestone Generating Station. This project focuses on integrated optimization and maximizing mercury removal and byproduct (gypsum and fly ash) value.
CAIR and Climate Change: Efficiency Will Be Key
While CAIR compliance requirements starting next January are severe and challenging, most generators have made the capital investments needed to meet them. The mechanisms available for addressing these requirements are relatively well-known, given the history of prior NOx regulations. But there was acknowledgement that the value of NOx reduction in starting next January will be 5-10 times greater than now. Even with current NOx allowance values for the 5-month Ozone Season, NeuCo’s closed-loop optimization solutions pay for themselves in 6-24 months.
Much of the climate change discussion focused on potential federal legislation (Carver-Lieberman legislation is slated for a full Senate vote this year). But there was also considerable attention on state and regional initiatives. These local regulations now encompass 31 states and several Canadian provinces, and should expand with the expected announcement of the Midwest Accord. The keynote speaker, Minnesota Governor and National Governors Association Chairman Tim Pawlenty, spoke in detail about these initiatives. He indicated that in late 2008, these 50-state initiatives will likely be consolidated into a single nation-wide framework.
Pawelty also referenced improving the efficiency of existing fossil-fired units. This was consistent with my presentation on how NeuCo’s optimization solutions are the most cost-effective approach to improving efficiency, emissions, and availability at these plants. He referenced the recently published McKinsey study, which showed that CO2 reductions through efficiency enhancements can be achieved at a negative cost, given the co-benefits.
I’ve just scratched the surface of the many challenges, strategies, and operating complications addressed at this year’s EUEC, but suffice to say the issues are important and going to get more difficult before they get easier. Probably for this reason, next year’s conference is being moved to Phoenix. There are no longer any conference facilities in Tucson large enough to accommodate the growth of this conference and the issues it addresses.
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