NEWS RELEASE                                                                            April 2017

Coal-fired Power Generators have Lots of “Clean” Opportunities

In many Asian localities coal will be the only near term solution to create electricity, prosperity and health. In Japan, the U.S. and Europe coal will continue to provide much of the electricity for decades to come.

Coal can be greener than any other form of generation. An example would be a system which uses 70% coal and 30% biomass and is producing CO2 which is injected to enhance oil recovery. This system is taking CO2 out of the cycle. This makes it greener than solar or wind.

Here is another example. Let’s compare (1) a system using electricity from the grid with (2) distributed generation from a dedicated coal-fired boiler.

  1. The first plant draws all its electricity from a utility which has a mix of solar, wind and gas generator sources. The plant needs a reliable power source which is assured with gas-fired power in the mix. The plant needs process steam and heat. Therefore, it burns gas for these purposes.
  2. The second plant generates its own electricity using coal. It is a combined heat and power plant providing steam and heat for local industries or residences. Its efficiency is over 70% compared to 35% without the credit for heat and steam. This means that plant number one is using lots of gas to equal the heat provided by CHP in plant number two.
  Plant 1 Plant 2
Total Combined Heat and Power Use (MW) 60 60
MW of Electricity 30 30
MW of Heat and Power 30 30
CO2 from Electricity Generation X 6X
CO2 from Heat and Steam Generation 4X 0
Total CO2 5X 6X

This comparison is based on a generation mix from the central utility of 1/3 gas-fired power. At higher ratios of gas-fired power generation at the central utility the CO2 is less from the combined heat and power plant. The tremendous increase in efficiency for combined heat and power has led GE to predict that distributed generation will be the wave of the future and that large central 1000 MW power plants will disappear.

This comparison could be considered biased by not comparing a gas-fired CHP to central electricity supply. CO2 emissions would only be 4X. This is the vision prompting GE’s bullish forecast. On the other hand, for much of the world gas is not available. Even in the U.S. many coal-fired industrial power plant operators have learned that the cost of a gas transmission line to their plant from the closest source would be prohibitive.

There is another aspect which will reduce CO2 emissions. CO2 is a plant fertilizer. The BHE Currant Creek plant pipes CO2 from the power generator to an adjacent greenhouse which grows 22 million lbs of carbon consuming tomatoes per year.

This brings up an ethical question relative to the harm from CO2. When you increase CO2 from 400 ppm to 600 ppm plants grow 40% faster. Shell pipes CO2 to 550 greenhouses in the Netherlands. Forty universities and government organizations have completed a study using satellite images which show that the earth is greening. The ethical question would be whether you choose to prevent starvation of a few in the short-term or reduce the long-term harm to the many. This is a complex question as covered in Sustainability Universal Rating System.

For countries with both inadequate food supplies, electricity and natural gas indoor farming with combined CO2 fertilization, heat and power with coal will save lives. Coal can be as clean as natural gas in terms of all the pollutants. China has a policy to invest in air and water pollution equipment to ensure that the entire fleet of power plants has emissions as low as the cleanest gas turbine plant. In fact, with their zero-liquid discharge policy (ZLD) there is no discharge of water to streams and rivers. Air cooled condensers (rather than wet cooling towers) and dry scrubbers (as opposed to wet) can eliminate water use.

Coal is made even more attractive with by-product flyash and gypsum production. This eliminates CO2 which would be caused by alternative production processes. The newest discovery is that the FGD systems can be the lowest cost option for rare earths feedstocks. HCl Scrubbing and Rare Earth Recovery from Coal-Fired Power Plants and Gasifiers are the Perfect Marriage.

Despite pressure from environmentalists more money will be spent in the next decade to build, operate, and maintain coal-fired plants than for any other generation option. Solar and Wind may very well eliminate fossil-fired generation someday, but that day is generations away. In the meantime, there is a big opportunity to make coal-fired power generation:

  • More efficient
  • Less costly
  • Cleaner

The Industrial Internet of Things (IIoT) empowered by the Industrial Internet of Wisdom (IIoW) provides the route to more efficient, less costly and cleaner coal-fired generation N031 Industrial IOT and Remote O&M.

IIoW is created by the interconnection of people with actionable knowledge as in 44I Coal Fired Power Plant Decisions. It is further created by interconnecting people in each plant with the suppliers as in 4S01 Berkshire Hathaway Energy Supplier and Utility Connect.

The biggest benefits of IIoT will come in the developing countries. Initiatives such as that between Juniper and India Power to provide O&M support at Indian power plants and the MHPS remote control center in the Philippines will provide the world’s coal-fired generation wisdom to localities lacking it.

NEWS RELEASE                                                                            April 2017

Ultrapure Water IIoT and Remote O&M Market will exceed $800 Million in 2026

Operators of ultrapure water systems in power plants, pharmaceutical, semiconductor and other industries requiring ultrapure water will invest $5 billion in hardware, consumables and services this year to provide high purity water for manufacturing processes. This is the forecast in Ultrapure Water World Markets published by the McIlvaine Companythis year. Seven percent of the total expenditures ($350 million) will be spent for IIoT and Remote O&M. The IIoT segment will grow rapidly over the next decade and reach $875 million by 2026. This will be due to rapid growth in digital process management as outlined in N031 Industrial IOT and Remote O&M.

Industry

UPW Total 

2017

UPW IIoT and Remote O&M

2017

UPW IIoT and Remote O&M

2026

Coal-fired Power 900 63 158
Semiconductor 1500 105 262
Other Electronics 850 59 148
Gas Turbines 400 28 70
Nuclear 200 14 35
Industrial Power 450 32 80
Other Industries 200 14 35
Pharmaceutical 500 35 87
Total 5000 350 875

Asia will dominate the market due to its continued expansion of coal-fired power, electronics manufacturing and its leading role in generic drugs. However, international companies are dominant in IIoT and in domain expertise, so they should be able to garner a high Asian market share.

The IIoT & Remote O&M applied to the manufacturing processes will be much larger but ultrapure water is essential to producing reliable steam, salable chips and safe drugs. The challenge is to integrate ultrapure water digital process management with that of the facility.

In the electronics industries, ultrapure water with a very high degree of purity is used to clean silicon wafers and electronic components. Kurita Water Industries combines IIoT and remote monitoring with a range of products such as deionizers, RO (reverse osmosis) membranes, water treatment chemicals, and ion-exchange resins.

Suez has the opportunity to become the leader in ultrapure water IIoT and Remote O&M. It is acquiring GE Water who has the ultrapure water technology while Suez is remotely monitoring facilities around the world from a center in France. For manufacturers of pharmaceuticals GE Water now offers water treatment, reactor cleaning, USP/UPW production, process fluids treatment and pharmacopoeia monitoring instruments. Its purchase of Sievers many years ago makes it a leading supplier of TOC and other water quality instrumentation.

The former GE Betz who is a major provider of chemicals for ultrapure water will also now be part of Suez. This group has a large staff of sales engineers who are providing a service as well as sales role. In the future with more IIoT and Remote O&M onsite service will be diminished.

Veolia combines systems and monitoring with mobile fleets with the following features:

  • Global network at your local service
  • Rapid response
  • High flow rates capacity solutions
  • Zero discharge
  • Continuous production
  • Preventive service

These capabilities will provide Veolia with the capability in the future to remotely monitor and control ultrapure water at the plant with a combination of permanent and mobile systems.

Ultrapure water systems require pumps and valves. The suppliers of these pumps and valves are the same companies who supply this flow control equipment to power, semiconductor and pharmaceutical plants. In the future IIoT world, the pump and valve suppliers will all have remote control centers and digital process management programs for their products. There will be a remote-control center operating a cloud-based open platform system which will integrate and analyze all the pumps and valves as well as all the other components and processes. The end users, main digital process manager and the pump and valve companies will all have real time relevant data.

The treatment chemicals companies will be monitoring chemical usage and performance. Filter companies will be monitoring filters for ultrapure water, wastewater, lubrication, hydraulic power and dust collection. All the fans and compressors will be similarly monitored and controlled.

A webinar to discuss this subject is scheduled for April 27. You can register at Weekly IIoT Webinars.

Details on the market report for ultrapure water systems and components is described at Ultrapure Water World Markets.

All markets for IIoT are covered in IIoT And Remote O&M.

 

NEWS RELEASE                                                                            April 2017

Cleanroom IIoT and Remote O&M Market will exceed $11 Billion in 2026

Operators of cleanrooms in the pharmaceutical, semiconductor and other industries requiring ultra clean environments will invest $5.1 billion in new rooms and other capital equipment plus an additional $7.1 billion in consumables and outside services this year. N6F World Cleanroom Markets. Of this total $1.2 billion will be spent for IIoT and Remote O&M. The IIoT segment will grow rapidly over the next decade and reach $11 billion by 2026. N031 Industrial IOT and Remote O&M

Cleanroom Revenues ($ millions)
Continent

2017

Capital

C&S Total

IIoT

2017

IIoT

2026

Total 5100 7140 12240 857 7711
 Africa 50 70 120 8 77
 America 1100 1540 2640 185 1663
 Asia 3300 4620 7920 554 4990
 Europe 650 910 1560 109 983

Asia will dominate the market due to its continued expansion of electronics manufacturing and its leading role in generic drugs.

The IIoT & Remote O&M applied to the manufacturing processes will be much larger but cleanrooms will also be an important segment. The challenge is to integrate the offerings of the cleanroom suppliers with the digital process management of the facilities.

Many large companies will be able to gain synergy among their products with IIoT related to cleanrooms. ABB is an example of a company with lots of components as well as the digital process management programs.

ABB Robotics has introduced an ISO 5 (Class 100) Cleanroom version of the IRB 120, its smallest ever multipurpose 6-axis robot. The component materials of the IRB 120 prone to particle generation have been modified to eliminate the potential for contamination of the manufacturing area and the parts being processed.

ABB is shaping and focusing its divisional structure into four market-leading divisions:  Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. The divisions are empowered as entrepreneurial units within ABB, reflected in an enhancement of its performance and compensation model focusing on individual accountability and responsibility. They benefit from sales collaboration orchestrated by regions and countries as well as from the group-wide digital offering; ABB’s leading G&A structure and costs; common supply chain management; and corporate research centers.

This sales collaboration is a welcome initiative. It has been the McIlvaine experience that most large multi divisional companies do not take advantage of the divisional synergies. McIlvaine has explored the Industrial Internet of Wisdom (IIoW) as a way to empower IIoT. The interconnection of individuals within the supplier companies is an important aspect of IIoW.

The Industrial Automation division succeeds the former Process Automation division. ABB will drive digitalization across industry sectors, building on its No.1 position in process control through software and services. ABB has domain expertise that allows it to master the control room in a wide range of industries such as pharmaceuticals, mining, shipping and oil and gas. By focusing on growing segments and bringing together maintenance, operation and control, ABB will drive penetration of strongholds and create differentiation for customers.

ABB has comprehensive IIoT solutions for industries utilizing cleanrooms. Its manufacturing execution systems (MES) play an essential role in achieving sustainable competitive advantages in the life science industry today. They enable higher plant efficiency and productivity as well as greater flexibility and agility throughout the production processes.

ABB collaborates with a leading pharmaceutical MES supplier, Werum IT Solutions GmbH based in Lüneburg, Germany, on control system solutions for life science industries.

Werum's PAS-X out-of-the-box software product is operating in approximately 800 installations of the world’s pharmaceutical and biotech companies. Manufacturing IT products from Werum IT Solutions help pharmaceutical manufacturers increase efficiency, improve productivity, and meet regulatory requirements.

The collaboration on the joint solution complements ABB's control systems offering with the latest MES technology, which is seen as a key component for efficient production workflows in the life science industry. By bringing together both offerings, ABB and Werum IT Solutions will be able to deliver full scope engineering and validation solutions according to the GAMP5 guideline, and comply with regulations, such as FDA (21 CFR part 11).MES capabilities include:

  • Production order management
  • Quality management
  • Weigh & dispense
  • Warehouse management
  • Standard operating procedures (SOPs) – bringing consistency to manual operations by guiding the operator through each step with the required production and safety instructions and checks.
  • Paperless manufacturing – electronic batch record.

Just as ABB incorporates Werum in its cloud-based solutions, it can also collaborate with Envirco, Mahindra, Lighthouse, Terra, Vaisala and Berendsen to provide the full range of remote support systems.

For more information on N6F World Cleanroom Markets

For more information on N031 Industrial IOT and Remote O&M

NEWS RELEASE                                                                            April 2017

Collaboration of Divisions within Large Companies will greatly Accelerate with IIoT

IIoT is predicted to completely change industry. This will only happen with the Industrial Internet of Wisdom (IIoW) empowering IIoT. In turn IIoW will only be fully implemented with interconnection among individuals within each supplier organization, so the most powerful incentive for collaboration will be survival and increased sales revenues. This is explained in N031 Industrial IoT and Remote O&M.

Here are the existing challenges which will be addressed:

  • The way most products are purchased in the pre IIoT era is haphazard.
  • Suppliers who have haphazard sales programs do not suffer now because the whole process is haphazard.
  • Few products are purchased based on total cost of ownership analyses because of the high cost to benefit ratio for onetime purchases.
  • Purchasers do not perceive the potential benefits of multi product synergy.

All of this will change with IIoT empowered by IIoW because: 

  • IIoT will make it possible for purchasers to easily coordinate all their multi-plant purchases.
  • Total cost of ownership analyses becomes very cost effective for large contracts. (Arcelor Mittal has demonstrated this for its 200 steel mills and mines.)
  • IIoT leverages the synergies among disparate products. Here are some examples:
  • ABB has a new cleanroom robot which is monitored and controlled by an ABB digital process management system for the entire semiconductor manufacturing operation.
  • Eaton has a lubrication filter which becomes part of a digital process management system with all the electrical products made by the corporation. Eaton pump drives can be operated based on filter pressure drop.
  • Colfax monitoring of fans from a Howden remote control center is incorporated into a cloud system with Colfax lubrication pumps. So, the Colfax pump remote control center will be in 24/7 contact with the customer and indirectly with the Howden division.

These developments will necessitate close cooperation among the sales and engineering personnel within the various divisions of large companies. If Arcelor Mittal is buying furnace dust collector systems for its plants in Europe and South America based on one total cost of ownership study then it is essential that a potential supplier gain knowledge about the status at each of the plants which will be included along with details about previous performance of various bag designs and cleaning systems.

McIlvaine is focused on providing tools to help advance IIoW. One example is a Decision Guide for a multi-plant corporation 4S01 Berkshire Hathaway Energy Supplier and Utility Connect. This system identifies the components at 200 power plants and compressor stations owned by BHE. It also includes nine hours of webinars to generate “wise crowd decisions”.

There is a Decision Guide just for the components in gas turbine combined cycle plants 59D Gas Turbine and Reciprocating Engine Decisions.

There is also one for components in coal-fired plants 44I Coal Fired Power Plant Decisions.

There are also coordination programs for suppliers

Detailed Forecasting of Markets, Prospects and Project
4 Lane Knowledge Bridge to the End User

NEWS RELEASE                                                                                                                                              April 2017

Tough Competition will limit Potential Indian Power Plant APC Market of $60 Billion to $30 Billion

India will be installing air pollution control equipment on existing as well as new generation units over the next five years. The purchases would exceed $60 billion if international prices prevailed. However, with very tough competition and low local fabrication costs, the market will be closer to $30 billion. Also, the scheduled time frame appears to be unrealistic at this point, so the revenues are likely to be spread out over more than seven years.

European and U.S. suppliers are not going to capture much of this market if they just take the cookie cutter route of limestone FGD, SCR and additional precipitator fields. It will simply be a repeat of the Chinese market where sales prices of systems were so low that international companies could not compete. However, there is a big profit opportunity for newer technology and for IIoT and Remote O&M.

The potential FGD market over the next five years is over $30 billion (international prices). Older units will need only 50 percent removal efficiency, so direct sorbent injection would appear to be a possible solution even with the use of the existing precipitators. But since the precipitators must be upgraded to meet new particulate standards, the use of DSI and fabric filters would be a good solution.

New units will need to meet 92 percent efficiency. CFB dry scrubbing or wet limestone scrubbers would be needed. On the other hand, there is a severe water shortage in India, so wet FGD will need to incorporate zero liquid discharge systems.

The forecast is based on an additional 100,000 MW of capacity coming on line in the next five years. This is well below the national target but is warranted based on failure in the past to meet new generation goals. In the latest five-year plan ending next year the capacity additions will fall short of plan by over 70,000 MW.

A NOx control market of over $17 billion will be created due to the new rules. The units installed before 2003 will probably only need to install low NOx burners and optimization systems. Units installed between 2003 and 2016 can install SNCR. The new units will need to install SCR unless some combination of innovative technologies will be adequate.

The technology under consideration at BHE PacifiCorp and the subject of nine hours of McIlvaine webinars would use SNCR with a novel reductant that would be a combination of H2O2 and urea. Ozone would be injected into the duct prior to the scrubber to achieve additional NOx removal.

Due to the high quantity of ash it may be time to think outside the box. All the early FGD systems in the U.S. were replacements for the existing precipitators. In some cases, a single stage venturi rod scrubber was used for both flyash and SO2.

It is important to note that SO2 scrubbers following relatively inefficient precipitators remove lots of particulate. There were a number of guarantees made by scrubber suppliers in the U.S. to reduce particulate from 0.2 lbs down to between  0.05- 0.1 lb/MMBtu due to capture of particulate in the SO2 scrubber.

Venturi rod scrubbers were successfully installed at Philadelphia Electric Eddystone and later at Cromby in systems engineered by United Engineers. They consisted of a first stage HCl and particulate scrubber and a second stage magnesium sulfite scrubber. The end product from the second scrubber and conversion at Essex Chemicals was sulfuric acid and rejuvenated magnesium oxide. A variation of this design could be used to produce rare earth feedstock and would be very cost effective.

Another option is just to use a one-stage scrubber and a wet ESP. This is the old Dravo Lime process with the wet ESP added to achieve particulate limits. NSP has operated a similar system.

The catalytic filter with dry sorbent injection (DSI) makes a lot of sense. It would meet the emission limits with one device rather than three. If it is desirable to sell the flyash the system could follow a multi tube cyclone. The big advantage of this route is recovery of heat. There is an 850°F hot clean gas stream for CHP or other purposes.

FLSmidth has a catalytic filter bag. It is fiberglass and good for temperatures up to 400°F. These are 33 ft. long bags so they could be inserted into an existing precipitator housing and provide the same gas flow.

With the big heat recovery potential, it may be time for India to consider a whole new approach to power generation. GE predicts that the future of power is distributed generation where the largest power plants are only 100 MW. The logic is that efficiency is doubled by combining heat and power. Some data centers are using up to 400 MW of power. So, larger plants can be located with the data centers but otherwise the plants would be built where district cooling/heating and industrial power and steam needs are high. If GE is right then this option will be important to India.

With the high flyash and modest emission reduction goals, there should be unique solutions applied to this market and not an approach which is just a cookie cutter approach to how it was done in China or the U.S.

One of the unique solutions is to embrace IIoT and Remote O&M. The new FGD, particulate, and NOx control systems can be remotely controlled and preventive maintenance scheduled for each of the components. One benefit of this is to eliminate the knowledge gap that exists due to lack of experience with these technologies.

Yara already has remote control centers and can monitor reagent performance and supply. Howden has the remote capability to monitor fan performance. Knife gate and other valve performance can be monitored by the valve suppliers. Reagent consumption and performance can be monitored by the lime or limestone suppliers. The overall system monitoring could be undertaken by the system supplier or a digital process management company.

McIlvaine has just conducted a webinar on IIoT and Remote O&M for coal-fired power plants. A session on Air Pollution Control IIoT and O&M is next Thursday, April 13 at 10:00 a.m.

Details on the Indian market for air pollution control technologies are found at:

ESP World Markets

Fabric Filter World Markets

FGD Market Strategies

You can sign up for the free IIoT and air pollution control webinar on Thursday at:  Weekly IIoT Webinars

 

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