You are on page 1of 44

NEWS & TECHNOLOGY FOR THE GLOBAL ENERGY INDUSTRY SINCE 1882

Vol. 167 • No. 3 • March 2023

The Future
of Combined
Heat & Power Page 18

Focus on Energy Storage | 22


Understanding Securitization | 32
Gas Turbine O&M | 34 & 36
SOLUTIONS YOU
CAN COUNT ON
TIME & AGAIN!

Pop-A-Plug® Tube Plugs


ASME PCC-2 Compliant Heat Exchanger Tube Plugging Solution
Trusted by conventional & nuclear power plants around the world as their preferred tube plugging solution, Pop-A-Plug Tube Plugs
from Curtiss-Wright are engineered for optimal performance throughout the life cycle of heat exchanger equipment. Simple hydraulic
installation eliminates welding and time-consuming heat treatments that can cause damage to tubes, tube sheet ligaments, and joints.

• No Welding Required
• Pressure Ratings Up to 7000 PsiG (483 BarG)
• Simple Hydraulic Installation
• Helium Leak Tight Seal to 1 x 10-10 cc/sec
• 100% Lot Tested to Ensure Unmatched Quality
• Wide Range of Sizes & ASME/ASTM Certified Materials Available

877.995.7627 l est-sales@curtisswright.com l cw-estgroup.com/pm-23


ON THE COVER
Efforts to adapt to decarbonization
have prompted combined heat and
power (CHP) equipment manufactur-
ers to develop small-scale hydrogen
CHP systems. The cover photo shows
Established 1882 • Vol. 167 • No. 3 March 2023 a 115-kWe/129-kWth hydrogen CHP en-
gine developed by 2G Energy Inc. The
system has been installed at several lo-
cations in Europe. Its first installation in
SPEAKING OF POWER North America is expected later this year.
Deployment of Carbon Capture Technology Likely to Courtesy: 2G Energy
Explode in Coming Years 5

GLOBAL MONITOR
South Africa Energy Crisis at Critical Stage as Load-Shedding Continues 6
THE BIG PICTURE: U.S. Combined Heat and Power and Microgrids 8
Solar Power/Hydrogen Project Underway in DRC 9
Trial Operation of Innovative Horizontal Pelton Hydropower
Turbine Underway in Austria 10
POWER Digest 12

FOCUS ON O&M
Modernizing Cybersecurity Practices Within Utilities 14
Improve Electric Grid Resilience Through
Integration of Energy Storage at EV Charging Stations 15

LEGAL & REGULATORY 6


Renewables Need More Domestic Production of Minerals 16
By Karol Kahalley, Laura Granier, and Erica Nannini, Holland and Hart LLP

COVER FOCUS: COMBINED HEAT & POWER


A Complex Landscape for the Future of Combined Heat and Power 18
Combined heat and power (CHP), a mature distributed resource, faces head-
winds as the world races to decarbonize, owing to its reliance on fossil fuels.
But the CHP market is adapting. Along with key market shifts, the sector is
leading power sector incorporation of low-emission fuels, such as renewable
natural gas and hydrogen.

FEATURES:
ENERGY STORAGE
New Technologies, New Sites Supporting Growth of Energy Storage 22 10
Energy storage, whether from batteries, pumped hydropower, thermal systems
or other technology, is benefiting from the trend toward electrification. It also is
growing in importance as a way to support the integration of renewable energy
to the power grid.

POWER MARKET ANALYSIS


The Challenges and Opportunities Facing Power Companies Today 26
Investors are finding new opportunities in the energy sector, and utilities are
finding new ways to leverage their assets. Power generators, with the advent of
new technologies, are today major players in the financial markets.

22
|
March 2023 POWER
www.powermag.com 1
MARNIE SURFACEBLOW
When Theory Becomes Practice, Rely on Practical
Experience as a Foundation 29
Marnie and Maya travel to the Philippines to troubleshoot issues at a test facil-
ity for torrefaction of biomass. The pair find many problems at the facility, not
least of which is a safety issue that puts workers in serious danger. However,
their recommendations are sure to get the plant operating more safely, reli-
ably, and efficiently.

FINANCE
Understanding How Securitization Can Help with
Power Plant Retirements 32
Utilities know it can be costly to close a power plant, but also know that choice

29 can be necessary. Securitization is a tool that power generators can use to


lessen the cost of taking a plant out of service.

GAS TURBINE
An Unplanned Outage, an Unconventional Plan,
and a Global Collaboration 34
A project to repair a gas turbine at a power plant in the UK became a global
collaboration, with the parts needed for the repairs located at a facility in
Argentina. What followed was a model of international cooperation to make
the logistics—which included bringing in another important part from Swit-
zerland—work.

Protecting Gas Turbines from High Temperatures, Humidity, and Dust 36


Operators of natural gas-fired power plants are always trying to improve
the efficiency of their facility’s turbines. A changing climate is making those
efforts more challenging, which means today’s turbines need better filtration
systems to protect them from harsh conditions.

32 CYBERSECURITY
Cyber Resilience for Wind Power Installations Web
Recent research at two national laboratories has provided insight into cyber-
security strategies and business cases for cybersecurity investments. These
findings will help renewable sector entities tailor an approach to evaluating
and implementing cybersecurity technologies for wind power plants. (Visit
powermag.com and search “Cyber Resilience for Wind Power” to read this
online-only exclusive.)

COMMENTARY
America—and the World—Needs More Nuclear Power 40
By Jeremy Harrell, ClearPath and U.S. Nuclear Industry Council

34 FIND THE LATEST POWER NEWS AT POWERMAG.COM

■G
 E Hitachi’s BWRX-300 Small Modular Reactor Gets Another Win
■N
 RC Rejects New Review of Diablo Canyon Nuclear Plant Operating Extension
CONNECT WITH POWER ■S
 iemens Gamesa Posts Nearly $1 Billion Quarterly Loss
If you like POWER magazine, follow ■O
 klo Readying to Deploy Commercial-Scale Nuclear Fuel Recycling Facility
us online for timely industry news and ■M
 ajor Nuclear Players Team on Innovative Construction Delivery Approach for
comments. BWRX-300 SMR at Darlington
■F
 ast Neutron Reactor Installed at Russian Research Facility
 ecome our fan at
B
■T
 exas Utility Will Close Remaining Coal-Fired Units
facebook.com/POWERmagazine
■E
 nergy Storage Being Added to California Gas-Fired Peaker Plants

 ollow us on Twitter
F ■G
 roup Says China Will Add 70 GW of Coal- and Gas-Fired Generation in 2023
@POWERmagazine ■1
 40 Workers Cut Permanently with Sammis Coal Plant Closure
■E
 PA Moves to Deny Coal Ash Disposal at Six Massive Coal Power Plants
J oin the LinkedIn ■J
 apan’s Largest Power Generator Signs Deals in Pursuit of Ammonia for Coal
POWER magazine Group and Power Plant Co-Firing Project
the Women in Power Generation
Group
2 www.powermag.com |
POWER March 2023
NEWS & TECHNOLOGY FOR THE GLOBAL ENERGY INDUSTRY SINCE 1882

EDITORIAL & PRODUCTION Visit POWER on the web: www.powermag.com


Editorial Director: Dorothy Lozowski, dlozowski@accessintel.com Subscribe online at: www.powermag.com/membership
Executive Editor: Aaron Larson, alarson@accessintel.com
Senior Associate Editor: Sonal Patel, spatel@accessintel.com POWER (ISSN 0032-5929) is published monthly by Access
Senior Associate Editor: Darrell Proctor, dproctor@accessintel.com Intelligence, LLC, 9211 Corporate Blvd., 4th Floor, Rockville,
Senior Graphic Designer: Tara Bekman, tzaino@accessintel.com MD 20850-3245. Periodicals Postage Paid at Rockville, MD
Senior Production Manager: Joann M. Fato, jfato@accessintel.com 20850-4024 and at additional mailing offices.

Contributors: David Anteliz; Avraham Edelstein; Karol Kahalley; Laura Granier; Postmaster: Send address changes to POWER, 9211
Erica Nannini; Una Nowling, PE; Melissa Barber; Tim Nicholas; Corporate Blvd., 4th Floor, Rockville, MD 20850. Phone:
Jake P. Gentle; Jay Johnson; and Jeremy Harrell 800-777-5006, Fax: 301-309-3847, email: clientservices@
accessintel.com.

Vice President and Group Publisher, Canadian Post 40612608. Return Undeliverable Canadian
Energy & Engineering Group: Matthew Grant, 713-343-1882, mattg@powermag.com Addresses to: IMEX Global Solutions, P.O. BOX 25542,
London, ON N6C 6B2.

ADVERTISING SALES Subscriptions: Available at no charge only for qualified


Western U.S./Canada: Christopher Hartnett, 713-823-8333, chartnett@accessintel.com executives and engineering and supervisory personnel
Eastern U.S./Canada/Latin America: Terry Davis, 404-634-5123, tdavis@powermag.com in electric utilities, independent generating companies,
Europe: Petra Trautes, +49 69 5860 4760, ptrautes@accessintel.com consulting engineering firms, process industries, and other
China: Rudy Teng, +86 13818181202, rudy.teng@enlib.com manufacturing industries. All others in the U.S. and U.S.
Japan: Katsuhiro Ishii, +81 3 5691 3335, amskatsu@dream.com possessions: one year $115.97 and two years $191.00. In
India: Faredoon B. Kuka, 91 22 5570 3081/82, kuka@rmamedia.com Canada: one year US$125.97 and two years US$199.00.
Outside the U.S. and Canada: one year US$237.00 and two
years US$388.00. Payment in full or credit card information
is required to process your order. Subscription request must
AUDIENCE DEVELOPMENT
include subscriber name, title, and company name. For new
Senior Marketing Manager: Jennifer McPhail
or renewal orders, call 847-501-7541. Single copy price: $59.
Fulfillment Manager: George Severine
The publisher reserves the right to accept or reject any order.
Allow four to twelve weeks for shipment of the first issue on
CUSTOMER SERVICE
subscriptions. Missing issues must be claimed within three
For subscriber service: pwr@omeda.com, 847-559-7314
months for the U.S. or within six months outside U.S.
Electronic and Paper Reprints: Wright’s Media, accessintel@wrightsmedia.com, 877-652-5295
List Sales: MeritDirect, Danielle Zaborski, dzaborski@meritdirect.com, 914-368-1090
For customer service and address changes, call 800-
All Other Customer Service: 713-343-1887
777-5006 or fax 301-309-3847 or e-mail clientservices@
accessintel.com or write to POWER, 9211 Corporate Blvd.,
BUSINESS OFFICE 4th Floor, Rockville, MD 20850. Please include account
Access Intelligence, 11000 Richmond Avenue, Suite 690, Houston, TX 77042
number, which appears above name on magazine mailing or
send entire label.
ACCESS INTELLIGENCE, LLC
9211 Corporate Blvd., 4th Floor, Rockville, MD 20850-3245 Content Licensing: For all content licensing, permissions,
301-354-2000 • www.accessintel.com reprints, or e-prints, please contact Wright’s Media at
Chief Executive Officer: Donald A. Pazour accessintel@wrightsmedia.com or 877-652-5295.
Chief Operating Officer: Heather Farley
Exec. Vice President & Chief Financial Officer: John B. Sutton General mailing address: POWER, 11000 Richmond Avenue,
Chief People Officer: Macy L. Fecto Suite 690, Houston, TX 77042.
Division President, Energy & Engineering,
Healthcare and Aerospace: Jennifer Schwartz Copyright: 2023 Access Intelligence. All rights reserved.
Vice President, Digital: Jonathan Ray
Vice President, Production, Digital Media & Design: Michael Kraus
Vice President of Finance: Tina Garrity
Vice President, Corporate Controller: Daniel J. Meyer

4 www.powermag.com |
POWER March 2023
SPEAKING OF POWER
Deployment of Carbon
Capture Technology Likely
to Explode in Coming Years
Aaron Larson Investments Are Happening for driving down costs and making these

I
haven’t always believed carbon cap- A lot of money is being spent on carbon projects more economical.”
ture, utilization, and storage (CCUS) capture, not only by private companies A couple of companies working to im-
technology would play a big role in trying to gain a foothold in the potential prove performance of systems and shift
the energy transition. While I knew the market, but also by the U.S. government cost curves in the right direction are Carbon
technology was sound and has been to help enhance and promote the tech- America and Carbon Capture Inc. Reece
used at commercial-scale for more than nology. “Carbon management has seen Rushing, director of Policy and Govern-
20 years, I thought the capital costs, an incredible increase in federal policy ment Affairs with Carbon America, said his
operations and maintenance expense, support over the last decade or so,” said company is developing a cryogenic point-
and heat rate and capacity-derating pen- Madelyn Morrison, government affairs source capture system called FrostCC. He
alties would preclude extensive use of manager with the Carbon Capture Coali- said the system is set to undergo testing
CCUS technology. However, my view tion. “The 117th Congress passed two of early this year at the National Carbon Cap-
has changed. the most consequential packages for cli- ture Center in Wilsonville, Alabama.
mate and energy policy in the nation’s his- Carbon America’s system is designed
High Demand for Carbon Capture tory, and funding and policies to support for low-cost, mass-manufacturing with
Many experts say large-scale deployment the commercialization of carbon manage- modular scalable components that can
of CCUS technology is imperative for the ment were really essential pieces of both be used for the full range of permitting
world to achieve net-zero carbon emis- of those broader packages,” she said. industries, according to Rushing. He said
sions goals by 2050. In a special report The Inflation Reduction Act (IRA), for it doesn’t use water or added chemicals,
published by the International Energy example, significantly enhanced and re- and the company expects it to be “two to
Agency (IEA), it says, “Reaching net zero structured the 45Q tax credit to make it five times cheaper than existing systems.”
will be virtually impossible without CCUS.” more easily accessible to the energy and It also promises improved performance,
There are several other studies that have manufacturing sectors, among others. reportedly capable of capturing greater
produced similar findings. During a media The provisions include a seven-year ex- than 99% of CO2 emissions, while also re-
briefing hosted by the CCUS industry- tension of the commence-construction moving other hazardous air pollutants in-
advocacy group Carbon Capture Coalition, window, which gives project developers cluding SOx, NOx, mercury, and particulate
Xan Fishman, director of Energy Policy and a concrete investment horizon for devel- matter. Commercial availability is expect-
Carbon Management with the Bipartisan oping projects. Now, projects that com- ed by 2024 for 100,000 ton/year systems,
Policy Center, a Washington, D.C.–based mence construction before Jan. 1, 2033, and by 2026 for 1 million ton/year designs.
think tank, offered insight from the Net- will be able to qualify for 45Q. Meanwhile, Patricia Loria, vice presi-
Zero America study, a two-year project But that’s not all. Congress also passed dent of Business Development with
conducted by researchers at Princeton the Infrastructure Investment and Jobs Carbon Capture Inc., a company keenly fo-
University. “They had five major models— Act, or the Bipartisan Infrastructure Law, cused on direct air capture (DAC) technolo-
every single one of them required CCUS as it’s often called. That act made the sin- gy, touted her group’s recently announced
to achieve net zero,” Fishman said. gle-largest investment in carbon manage- Project Bison, “which will be the largest
Taking it a step further, Fishman ex- ment technologies in history—about $12.1 direct air capture facility in the world in
plained that the researchers “ran a bunch billion in funding over five years for com- Wyoming.” The project is expected to be
of variants of their modeling,” and vari- mercial deployments, large-scale demon- operational by late 2023, at which point,
ant number 55 was particularly notable. strations, and other programs to enable it would be the first atmospheric carbon
“They tried to artificially constrain things the deployment of the full value chain of removal facility to use Class VI wells for
so that no CCUS was allowed, and what carbon management technologies. permanent storage, as well as the first
they found is that no feasible model would massively scalable DAC project in the U.S.
work with that constraint,” said Fishman. Cost Curves Will Come Down “We are able to make those commit-
Going back to the IEA report, it says the While first-generation capture technolo- ments because of the support of IRA. That
global carbon management industry will gies are ready for commercial-scale increase of the tax credit to $180 really
need to capture eight gigatons of CO2 per deployment today, new capture tech- does make feasible a significant amount
year to reach net zero by 2050. Mahmoud nologies are in various stages of devel- of deployment … and that’s really critical
Abouelnaga, solutions fellow with the opment, and many of them promise to to getting cost reduction down. ... We do
Center for Climate and Energy Solutions significantly lower costs and improve believe that carbon management is going
(C2ES), suggested that’s equivalent to performance of carbon management to be a cost-effective part of the solution,”
removing eight times the CO2 emissions systems. Morrison said measures en- said Loria. I’m beginning to agree. ■
from every coal power plant in the U.S. acted by Congress over the past couple —Aaron Larson is POWER’s
today. That’s mind-boggling. of years “are going to be really critical executive editor.

|
March 2023 POWER
www.powermag.com 5
South Africa Energy Crisis at contributing to an elevated level of con- Energy. About 5% of the country’s power
Critical Stage as Load-Shedding cern. Government data shows South Af- comes from two reactors at the Koeberg
Continues rica has about 54 GW of installed power nuclear power station, with the rest gen-
The energy crisis in South Africa has generation capacity. erated by renewable power resources.
prompted continued calls for government Eskom in a statement in late January Ramaphosa at a late January meeting
action, and officials in January said an en- said the utility “is making every effort to with senior officials of his African Na-
ergy action plan announced last year is reduce the duration of these outages as tional Congress party said the coal-rich
starting to be implemented. The plan was much as possible. Although the stages country must transition to more renew-
laid out by South African President Cyril of load-shedding have been high, and for able energy, but said it can’t immediately
Ramaphosa a year ago, and designed extended periods, this does not indicate abandon coal. He noted existence of
with a long-term goal of securing a reli- that the power system is approaching a “the perception that we are called upon
able supply of electricity for the country. blackout,” it said. “In fact, load-shedding to make a tradeoff between energy secu-
Mondli Gungubele, a government min- is implemented to ensure the appropriate rity and a just transition to a low-carbon
ister, at a news conference in late Janu- reserve margins are maintained to man- economy,” and said the country does not
ary said, “There is no immediate panacea age the risk of a blackout. Therefore, there have to make “a choice between coal
to this crisis,” which has become a criti- is no higher risk of a blackout than normal.” and renewable energy.” The president
cal issue as power utility Eskom has “Like the COVID-19 pandemic, the said, “Our energy architecture is 80%
implemented stage 6 load-shedding— current energy crisis raises the necessity coal-powered, [and] there is just no way
removing as much as 6 GW of electricity for a societal response,” said Gungubele. we are going to close those power sta-
from the national grid to prevent it from “All parts of society need to pull together tions ... just like that.”
collapsing, by cutting power to different and play their respective roles if we are Ramaphosa said the ongoing energy
parts of the country at various times. to overcome the electricity crisis.” The crisis is due in part to the country’s ag-
Load-shedding, accomplished through minister added, “The energy crisis we ing coal plants, which need mainte-
a series of rolling blackouts, has been are facing is not unique to South Africa. nance. State-funded Eskom also has not
part of South Africa’s power grid since There is currently a global energy crisis, had enough money to buy a sufficient
2007. Gungubele, though, said the gov- and therefore we must work together to quantity of diesel fuel to run emergency
ernment is working to “ensure full and address the crisis.” Load-shedding by Es- generators to produce more power. The
effective implementation of the Energy kom has gotten worse in recent years, country in the past two years has re-
Action Plan,” even as Johannesburg resi- with officials saying 2022 was the worst ceived billions of dollars in international
dents continue to live with blackouts oc- year ever for blackouts, and with load- grants and loans, with the money target-
curring for hours at a time, as often as shedding occurring on every day so far ed for renewable energy development.
three times each day. this year at least through early February. Andre de Ruyter, Eskom’s outgoing
Eskom reported that nearly 16 GW Most of South Africa’s electricity—near- CEO, in January said the utility is “paying
of generation was offline the last week- ly 80%—is produced at coal-fired power for the sins of the past” after not signing
end of January due to unplanned break- plants, with much of the rest generated contracts in 2014 to build more renew-
downs, while another 6.5 GW was out by facilities burning oil and diesel, accord- able power generation, which he said
of service for planned maintenance, ing to the BP Statistical Review of World was contributing to the continued load-
shedding. De Ruyter, who submitted a
letter of resignation to Eskom officials in
mid-December 2022 but will continue in
the role into this month, recently said he
survived a cyanide poisoning attempt the
day after deciding to resign.
De Ruyter, who became Eskom’s CEO
in December 2019, has said some of the
problems with South Africa’s power sec-
tor stem from what he called endemic
corruption that has impacted much of
the country’s economy. De Ruyter has
repeatedly said he thinks organized
gangs have infiltrated Eskom and have
been stealing from the company. He
also has said he thinks crime syndicates
have been taking both spare parts and
coal from the company’s power plants
1. Eskom in November 2022 said several people were arrested at the coal-fired Camden (Figure 1), and deliberately sabotaging
Power Station (pictured), charged with stealing coal, sabotaging the plant, and committing coal power stations to win contracts for main-
fraud—bringing coal mixed with worthless material to the plant. The utility said some truck driv- tenance and repair work.
ers were arrested for carrying stolen coal that was to be delivered to Eskom. Courtesy: Eskom U.S. Treasury Secretary Janet Yellen

6 www.powermag.com |
POWER March 2023
GLOBAL MONITOR
met with South African Finance Min- some cases for as long as 12 hours a day some energy project licensing require-
ister Enoch Godongwana in Pretoria in in total for various regions—Eskom is ments, to support faster approval of gen-
late January. Their discussions included still not able to satisfy electricity demand eration projects to enable more private
ways to move South Africa away from its at peak times, which she said could investment. He said 18 “skilled special-
reliance on coal-fired power and toward reach as high as 34 GW. “Having one ists” have been brought back by Eskom,
more renewable energy resources. Yel- state-funded utility company fully reliant including three former power station
len said the U.S., as part of the Biden on the government for funding is just a managers, to help rebuild the utility’s
administration’s commitment to improve tip of the iceberg,” Tsukerman said. “De- “technical capacity.” The minister said
relations with African nations, is focused pendency on the coal plants and failure the government is actively collaborating
on energy issues on the continent. Ra- to transition to gas or other more sus- with external stakeholders that have ex-
maphosa—who stayed in South Africa tainable or transitional forms of energy is pressed interest in helping Eskom.
rather than attending the recent World another significant concern.” He also said maintenance is being pri-
Economic Forum in Davos, Switzerland, Tsukerman said the U.S., UK, and the oritized at the six largest coal-fired plants
due to the energy situation in his coun- European Union “have pledged $8.5 bil- in the country, including the Kusile sta-
try—has said he wants South Africa to lion to South Africa for energy transition, tion, where three of the plant’s six 800-
begin phasing out some coal-fired gen- but even receiving that money will take MW units were taken offline in October
eration as part of a target for net-zero time and there is no guarantee that that 2022 after the collapse of a flue-duct unit.
carbon emissions by 2050. money will not disappear as previous South African media in late January said
“South Africa has been sustaining in- funding has from various projects.” Yellen Eskom officials have been meeting with
creasingly frequent blackouts, with 2022 in public comments during her visit said, treasury agents to find funding for need-
being the worst on record,” said Irina “As you know, South Africa is the first ed repairs at Kusile. A source told the Mail
Tsukerman, a geopolitical analyst and pres- country with a just energy transition part- & Guardian news service that there is “no
ident of Scarab Rising, a business advisory nership to which the United States was quick fix for the chimney because the util-
company. “In essence, Eskom is a symp- proud to commit as a partner. This part- ity does not have equipment that will hold
tom rather than a cause of the ongoing is- nership represents South Africa’s bold the chimney upright. The temporary solu-
sues. The breakdowns in 11 coal-powered first step towards expanding electricity tion will take at least 12 months to build.
plants just last week [late January] caused access and reliability and creating a low- Importing a ready material that will hold
Eskom to implement further cuts.” carbon and climate-resistant economy.” the chimney would be too expensive and
Tsukerman told POWER that even Gungubele at his news conference we can’t afford it at this time.”
with the load-shedding outages—in said the government has begun relaxing Gungubele, while touting the gov-

|
March 2023 POWER
www.powermag.com 7
GLOBAL MONITOR

THE BIG PICTURE: U.S. Combined Heat and


Power and Microgrids
As of December 2022, the Department of Energy (DOE) CHP Installation Database recorded 4,674
combined heat and power (CHP) installations in the U.S., with a combined capacity of 80.4 GW.
Installations were all sizes, from large industrial systems that are hundreds of megawatts to small
commercial microturbine and fuel cell systems that are tens of kilowatts. The database also captures
microgrid installations in the country. Source: DOE CHP and Microgrid Installation Database (February
2023). —Sonal Patel is a POWER senior associate editor.

Capacity (kW)
CHP INSTALLATIONS MICROGRIDS
2
500,000
1,000,000
1,738,000

Prime Mover Technology


Backpressure steam turbine Microturbine
Boiler/steam turbine Organic Rankine Cycle
Combined cycle Other
Combustion turbine PV By Capacity: By Site:
80.4 GW 4,674 sites
Fuel cell Reciprocating engine operate in the U.S.
Heat recovery steam generator
with a steam turbine

Solid Process gas 1. Chemicals (29%)


Wood biomass (1%) 2. Petroleum refining (19%)
(2%) (1%) [12] 3. Pulp & paper (15%)
[11] 4. Food processing (5%)
Black liquor
[10] 5. Primary metals (5%)
(4%)
6. Utilities (4%)
7. District energy (4%)
[9]
8. Oil/gas extraction (4%)
Coal [8] [1] 9. Colleges/Universities (3%)
(11%) Natural gas [7] 10. Transportation
(73%) equipment (1%)
[6] 11. Wood products (1%)
[5] 12. Hospitals (1%)

[4] Less than 1%: wastewater treatment,


[2] agriculture, solid waste facilities,
[3] rubber and plastics, machinery,
government, military, textile
products, air transportation,
multi-family buildings, mining and
others.
By Fuel By Application
8 www.powermag.com |
POWER March 2023
GLOBAL MONITOR

ernment’s efforts toward building more Solar Power/Hydrogen Project DRC, depends on hydroelectricity for
power generation infrastructure, said, Underway in DRC most of its power supply—in its case
“These examples of interventions that Hydrogène de France (HDF Energy) has 98%. That’s problematic as drought
are underway demonstrate the urgency entered into a partnership with the gov- conditions impact the supply of water
that is being put into fixing the energy ernment of Kinshasa, a city-province across Africa, including for the Congo
challenges. These cannot be implement- and capital of the Democratic Republic River that borders Kinshasa. The DRC’s
ed overnight.” The minister said the gov- of Congo (DRC) in Africa, for construc- hydropower dams have combined gen-
ernment wants to enable construction tion and operation of a photovoltaic (PV) eration capacity of 2,844 MW, according
of “substantial” new power generating solar power plant that would be used to to government data. The National Invest-
capacity. “Some of this power will be produce green hydrogen. Officials said ment Promotion Energy group, known
bought by Eskom through the renew- it’s the first such solar/hydrogen project as ANAPI (Agence nationale pour la pro-
able energy program, which has been planned in Central Africa, following on motion des investissements), estimates
expanded and accelerated,” he said. a similar agreement reached in Novem- only about 44% of Kinshasa’s residents
“In the last six months, agreements ber 2022 to build a hydrogen plant pow- have access to electricity. Officials have
have been signed with independent ered by renewable energy in Namibia in said taking advantage of the region’s so-
power producers for 26 projects, which southwestern Africa. lar power potential will be critical to sus-
together will generate around 2,800 HDF Energy, an independent power tain economic growth.
MW. Another major source of new gen- producer, in January announced it had The DRC government in 2020 moved
erating capacity will be solar panels on begun a feasibility study for the Kinshasa forward with a 600-MW solar photovol-
the roofs of houses and businesses. installation. Flavien Nkui Misuru, a com- taic plant, called Kinshasa Solar City, in
Work will soon be completed on a pric- missioner-general in Kinshasa’s govern- Menkao, a district located in the munici-
ing structure that will allow customers to ment, said regional authorities welcomed pality of Maluku in Kinshasa. That project
sell surplus electricity from rooftop solar the project because it would support the was led by Sun Plus, a subsidiary of The
panels into the grid. That way, they can area’s electricity supply and bring more Sandi Group (TSG), a global provider of
meet their own power needs and help economic opportunities with its hydrogen infrastructure improvement and mod-
increase the amount of electricity on the production. Misuru said the government ernization services. The solar farm feeds
grid,” said Gungubele. would plan more similar projects should into the power grid operated by National
—Darrell Proctor is a senior associate the HDF effort prove successful. Electricity Co. (Snel), the state-owned
editor for POWER. Kinshasa, like other provinces in the utility. The Solar City project was de-

Meet us at
booth #S83941

SOME JUDGE ENGINES


ON POWER.
OTHERS ON TECHNOLOGY.
WHY NOT BOTH?
Because power and technology are what FPT engines deliver, and have been
for more than a century. Our engines not only offer options that deliver power
from 37kWe up to 515kWe, they also feature the technology that keeps you
working in the most extreme environments.

• Dependable, heavy duty power • EGR-free combustion


• Eliminate low temp, low load issues • DPF-free after treatment systems
• Increase fuel efficiency • Reduce maintenance & increase uptime

Learn more at fptindustrial.com

|
March 2023 POWER
www.powermag.com 9
GLOBAL MONITOR
Corp. to facilitate construction of power
plants in Indonesia, along with PT Nus-
antara Power, a division of state-owned
electric utility PT PLN Persero. HDF said
it has a pipeline of 22 renewable hydro-
gen energy projects, representing an
investment of $1.5 billion, being built in
Indonesia.
—Darrell Proctor is a senior associate
editor for POWER.

Trial Operation of Innovative


Horizontal Pelton Hydropower
Turbine Underway in Austria
A pioneering horizontal, six-nozzle Pel-
ton turbine developed by Voith Hydro at
the 326-GWh Gerlos 1 pumped storage
facility in the Ziller Valley, Austria, is set-
ting new benchmarks for the 140-year-
2. HDF Energy is a global provider of large-scale hydrogen-to-power infrastructure, using re- old technology. The long-time German
newable resources combined with the company’s fuel cell systems. Courtesy: HDF Energy manufacturer of hydropower equipment
in January said trial operation of the in-
signed to incorporate other smaller PV generation projects. novative Pelton wheel, which replaced
solar installations, with eventual cumula- Nicolas Lecomte, HDF’s director for the plant’s four vertical Pelton turbines,
tive capacity of about 1,000 MW. Southern and Eastern Africa, said his has been “running successfully for over
HDF Energy is based in Bordeaux, company’s new facility would help satisfy two months now,” achieving an efficien-
France. The company develops and oper- more of Kinshasa’s power demand. “Our cy level that compares to the vertical
ates high-capacity, large-scale hydrogen- solution, the Renewstable high-power configuration.
to-power infrastructure, to provide firm hydrogen power plant, is particularly suit- Developed by American inventor Les-
or on-demand electricity from renewable able not only to support the necessary ter Allan Pelton in the late 1870s to op-
resources such as wind and solar (what electricity but also the network services timize energy production for Western
it calls Renewstable plants), combined to improve the stability and operating mining operations using lower-volume
with high-power “MultiMegawatt” fuel conditions of the electricity supply. In mountain streams, the Pelton wheel is
cell systems (Figure 2). Officials said the addition, our solution is an alternative of an impulse-type hydraulic turbine with
solar/hydrogen power plant would be lo- choice of supply isolated networks and a fairly simplistic design, which can be
cated in the southern part of Kinshasa. contributing to the national development configured on a horizontal or a vertical
Provincial authorities said they support program of the 145 territories. It can be axis. It essentially comprises a large
HDF “to make effective progress in the deployed in rural and remote areas. Also, circular disk with elliptical cup-shaped
development of this first hydrogen pow- the hydrogen component of our projects blades (buckets) mounted on a rotating
er plant.” Misuru, who heads Kinshasa’s allows the country to acquire skills that shaft (rotor). When a high-speed water
division responsible for energy, livestock, will make it possible to better seize op- jet from the penstock (a pipeline from
and fisheries, said, “In a context where portunities in the field.” the water reservoir) is injected through a
we need to rapidly reinforce the means HDF has installed or is building its re- nozzle, it hits on a Pelton wheel bucket,
of electricity production for the city-prov- newable, large-scale power plants in sev- inducing an impulsive force that forces
ince, the power plant project by HDF, eral countries. The group in November of the turbine to rotate, and the rotating
given its technical characteristics, is wel- last year formed a partnership with the shaft runs a generator to produce power.
comed with great satisfaction. Through U.S. International Development Finance So far, the horizontal-axis configuration
the measures we are putting in place un-
der the memorandum of understanding,
we are seeking to encourage the emer-
gence, as soon as possible, of this first
hydrogen power plant project, which can
then be duplicated.”
The population of Kinshasa is estimat-
ed at more than 17 million, spread over
a vast area. It is one of 26 provinces in
the DRC, and the third-largest metropoli-
tan area in Africa after Cairo, Egypt, and
Lagos, Nigeria. Officials have said the
region is prone to load-shedding to help
balance the electricity supply with de-
mand, a situation noted by Misuru in his 3. Types of hydraulic turbines. From left to right: Francis turbine, Pelton wheel, and Kaplan
turbine. Courtesy: Enel Green Power
comments about needing more power

10 www.powermag.com |
POWER March 2023
GLOBAL MONITOR
fined the technology using flow simu-
lation, which has enabled realistic
analysis of the Pelton turbine’s unique
flow characteristics. “Today, design-
ers have new insights into complex jet,
bucket, and casing flow phenomena
providing a solid basis for the develop-
ment of new bucket profiles that result
in improved performance,” it said. But
while the company has showcased its
development in a series of remarkable
projects worldwide, its development,
installation, and trial operation of the
first horizontal, six-nozzle Pelton turbine
marks a technological leap.
The breakthrough stems from inten-
sive study by German researchers to
develop multi-nozzle horizontal Pelton
4. Impressions from the Pelton test rig at Voith Hydro’s Brunnenmühle Research and Develop- units. A key challenge has been devel-
ment Center in Germany. Courtesy: Voith oping a suitable housing for multi-nozzle
horizontal turbines that can withstand
has been limited to two injectors, while bine was, in large part, spearheaded by efficiency, aeration, and structural stress-
vertical-axis turbines can feature up to Voith. “From the beginning, the devel- es, which are rooted mainly in how wa-
six injectors, which are typically mount- opment of Pelton turbine technology ter circulates in the casing. Voith said
ed symmetrically around the wheel. has been synonymous with Voith,” the its development of the innovative six-
The Pelton turbine’s working principle company noted. “Since the turn of the nozzle horizontal turbine was partly due
is well-suited to water sources with rela- 20th century, Voith has supplied thou- to its newly developed ability to analyze
tively high hydraulic heads at low flow- sands of Pelton turbines, including large housing flow (Figure 4). “The interaction
rates. In contrast, the 1848-invented and powerful machines.” between the water jet and the buckets
Francis turbine—the most commonly The company has also gradually re- of the Pelton wheel is extremely short,
used hydraulic turbine—is a reaction-
type turbine that operates with a partially
submerged runner, where water reaches
the wheel through a spiral conduit. The
1913-invented Kaplan turbine is an axial
turbine with adjustable blades that, like
boat propellers, rely on the flow of water
to turn the blades.
Francis turbines are typically used for Efficient boiler cleaning with
low- to medium-water heads (from up to Shock Pulse Generators
10 meters [m] to 400 m), while Kaplan
turbines can perform optimally at small · Permanent and automated
height differences but also with large boiler cleaning, thus lower
variations in capacity (200 m3 per sec- exhaust temperature and
ond and above). Pelton turbines are used higher boiler efficiency
for large height differences (from 300 m
to 1,400 m) and less than 50 m3 per sec- · No steam consumption,
ond of water capacity (Figure 3). no thermal abrasion or
According to the American Society of damaging of boiler tubes
Mechanical Engineers (ASME), the first
operational Pelton wheel was installed · Higher plant availability by
at the Mayflower Mine in Nevada City in longer boiler traveling period,
1878, but it was dramatically scaled up less cleaning needs during
in 1895 when a 30-foot-diameter wheel maintenance stops
was installed at a gold mine in Grass Val-
ley, California. “Pelton’s invention trans-
formed the American West by replacing
expensive, bulky steam engines at min-
ing and construction sites with low-cost
www.explosionpower.ch
hydroelectric power. By the turn of the
century, the age of hydroelectric power
was flourishing,” ASME notes.
Widespread uptake of the Pelton tur-

|
March 2023 POWER
www.powermag.com 11
GLOBAL MONITOR
POWER Digest
Pakistan Begins Commercial Opera-
tion of 1.3-GW Coal Plant. Pakistan on
Feb. 7 began commercial operation of
a 1.3-GW coal-fired power plant in the
Thar Desert in Sindh province, south-
ern Pakistan. The project, built as part
of the Thar Coal Block-I Coal Electricity
Integration project, was developed by
China’s Shanghai Electric Group. Es-
timated to cost about $2.5 billion, the
project comprises two 660-MW sub-
critical Shanghai Electric units. It will
use local lignite supplied by Sino Sindh
Resources Ltd. (SSRL), a Shanghai
Electric subsidiary. SSRL was awarded
a 30-year mining lease for Thar Coal
Block-I in October 2011. As part of the
5. Voith Hydro deployed a heavy transport operation to get the 54-ton housing for its innova-
tive six-nozzle horizontal Pelton turbine from its manufacturing facility in St. Poelten, Austria, to project Shanghai Electric is also build-
Verbund’s Gerlos 1 plant site in the Ziller Valley in Tyrol. Verbund AG operates eight hydropower ing a 6.8 million tonnes per annum
plants at five reservoirs in the scenic Zillertal Alps. Courtesy: Voith (mtpa) open-pit mine. The Thar project
is one of 16 priority projects developed
often just a few milliseconds,” the com- vertical Pelton turbines and was due for under the 2013-signed China-Pakistan
pany explained. This is why the flow an upgrade. Economic Corridor (CPEC) framework.
simulation of Pelton turbines is by far the Among challenges Voith highlighted According to Pakistan’s CPEC Author-
most complex and difficult of all hydrau- were getting the 54-ton turbine housing ity, 13 projects have already been com-
lic turbomachinery simulations. to the plant site (Figure 5). “Apart from pleted, including 6.3 GW of coal-fired
“The housing in a Pelton turbine its weight, the dimensions of the unit power projects, 600 MW of solar, 300
needs to guide the water being dis- were also impressive: just under nine MW of wind, and 720 MW of hydro-
charged by the runner in such a way meters long, more than six meters wide power. Another 630 MW of coal-fired
that it leaves the housing without back- and over four meters high. This logistical capacity is under construction along
splashing on the runner, because that masterstroke could be accomplished with 870 MW of new hydropower. Sev-
would lower the efficiency,” Voith told by means of a heavy transport opera- eral other coal, wind, and hydropower
POWER. “For two-jet machines, this tion taking an entire three nights,” the projects are also “under consideration,”
is relatively simple because at two company noted. the authority said.
points along the circumference water However, the triumph of demonstrat- Saudi Arabia Relaunches 7.2 GW
is impinging on the jet. Therefore, only ing the turbine’s operation has ushered of Gas Power Projects with CCS
some guide vanes inside the housing in fresh potential for hydropower world- Requirement. Saudi Power Pro-
are necessary. If more than two or wide, Voith suggested. “[T]he technolo- curement Co. (SPPC), Saudi Arabia’s
three jets impinge on the runner, the gy is of particular interest for upgrades state-owned power project develop-
amount of water per bucket width is of existing hydropower plants where ment arm, on Jan. 21 has relaunched
dramatically increasing. Also, the posi- single- or double-nozzle horizontal four new combined cycle gas turbine
tions at which the water is discharged units are already installed,” it noted. (CCGT) projects—a combined capac-
by the runner are distributed all along “This is because the turbine can be re- ity of 7.2 GW—with an imperative that
the runner.” The new concept uses placed without major structural works, any bids must ensure the projects will
a circular or polygonal cover sheet which significantly reduces civil costs be carbon-capture ready. The projects
around the runner that serves on one and installation times.” include two phases of the 3.6-GW Qa-
side as a guide vane for the discharging The company also said “enormous ssim IPP (Qassin IPP 1 and 2) project
water and on the other side as a protec- potential” exists to increase efficiency and two phases of the 3.6-GW Taiba
tion for the runner from back splashing at hydropower plants equipped with IPP project (Taiba IPP 1 and 2). On Jan.
water. “The housing is more complex Pelton turbines. “The associated poten- 31, SPPC also specified 21 parties that
and larger. However, it provides a much tial reduction in the number of turbines are pre-qualified to bid for the projects.
higher power density than two-jet ma- can likewise lower future maintenance The CCGT plants will be built in align-
chines,” the company said. costs. The new development is also a ment with the kingdom’s “Green Initia-
After extensive tests and pilot pro- winning solution for new systems, as tive,” which seeks to achieve net-zero
grams, Voith bagged its first customer, it requires less excavation and is more carbon emissions by 2060 in addition
Austrian utility Verbund. Verbund of- compact with a smaller footprint than to the objectives to ensure supply se-
fered to demonstrate the technology at conventional solutions. This is also as- curity, diversity of market participation,
Gerlos 1, located at the southern end sociated with a shorter installation time, and fair competition. SPPC indicated it
of the holiday resort village of Rohrberg which substantially reduces the overall would re-tender the Qassim and Taiba
in the Zillertal on the steep slope of the investment costs.” projects with a carbon capture readi-
Rohrerberg. The plant, which was built in —Sonal Patel is a senior associate editor ness in December, six months after the
phases and completed in 1949, had four for POWER. ministries of Finance and Energy fully

12 www.powermag.com |
POWER March 2023
GLOBAL MONITOR
nationalized SPPC, as part of the kingdom’s efforts to re- considering more than 20 projects based on the technology in
structure its electricity sector, and introduce financial and or- sunbelt locations worldwide.
ganizational reforms. SPPC’s new role now involves planning Estonia Sets Out to Build First Pumped Storage Plant.
and putting forward projects, and concluding power purchase Zero Terrain, a 550-MW underground pumped storage plant
and wholesale agreements, developing energy trading mar- that energy firm Energiasalv is developing in Estonia received
kets, and purchasing fuel. an official permit to begin construction on Jan. 24. The proj-
South Korea Submits Proposal for Four Nuclear Reac- ect, Estonia’s first large-scale energy storage project, will be
tors to Türkiye. South Korea’s Korea Electric Power Corp. built in Paldiski, northwestern Estonia. It will provide 6 GWh
(KEPCO) has submitted a preliminary proposal to build four of storage capacity (during one storage cycle of 12 hours). En-
1,400-MW nuclear power plants in northern Türkiye. Türkiye ergiasalv said it planned to continue with pre-qualification for
reportedly asked KEPCO to submit a proposal for the project construction procurement, and it will seek to finalize the tender
in December, including how KEPCO will develop and build the process by the end of 2023. Construction start is slated for the
project. “The two sides began discussions on the project in summer of 2024.
earnest. They will carry out a feasibility test to come up with Hexicon Secures Permits to Connect 7.1 GW of Floating
an optimum way to push for the project,” KEPCO said in a Wind to Italian Grid. Italian transmission system operator
press release on Jan. 31. KEPCO is leading South Korea’s tar- Terna SpA on Jan. 19 granted floating wind power project de-
get of exploring 10 nuclear power reactors by 2030, and it is veloper Hexicon permits to connect six floating wind power
actively marketing OPR1000 and APR1400 units to countries sites to the national grid. The six wind farms, which could use
in the Middle East, North Africa, and Latin America. South Hexicon’s proprietary TwinWind floating wind design (featuring
Korea is currently involved in a $20.4 billion contract to build two turbines on one foundation), are still under development
four APR1400 nuclear reactors in the United Arab Emirates off the coasts of Sardinia, Sicily, and the mainland, in Pug-
(UAE)—a combined output of 5,600 MW. UAE nuclear opera- lia. Hexicon expects a seventh site will soon be permitted. The
tor Emirates Nuclear Energy Corp. (ENEC) began operating development marks a big leap for Italy’s efforts to ramp up its
Unit 2 at the Barakah Nuclear Energy Plant in March 2022, a renewable production, which aim in part to cut dependence on
year after it began commercial operation of Unit 1. Unit 3 has Russian gas. “With a vast coastline and excellent wind resourc-
been grid-connected and is currently in the commissioning es, especially in the deep waters of the Mediterranean Sea,
phase. Unit 4 is 92% complete. ENEC says that once the four Italy has a strong potential for floating wind,” Hexicon noted.
units are fully operational, they will provide up to 25% of the The Global Wind Energy Council suggests Italy is one of the
UAE’s energy. In January, notably, ENEC and Korea Hydro top five emerging markets for offshore wind. ■
and Nuclear Power signed a memorandum of understanding —Sonal Patel is a senior associate editor for POWER.
to expand their cooperation on future South Korean nuclear
plant exports, as well as on research and development for
small modular reactors and microreactors.
GE Connects 1.2-GW Pumped Storage Plant in China. GE
Hydro Solutions on Jan. 31 successfully connected all four
units of the 1.2-GW Jinzhai pumped storage power plant in
Jinzhai County, Anhui Province, China. GE supplied the plant’s
four 300-MW pumped storage turbines, generator-motors, as
well as the balance of plant equipment. The hydropower proj-
ect is expected to stabilize China’s grid and help it integrate
more renewables in its energy system. The project is part of
China’s ambitious plan to install more than 200 pumped stor-
age stations with a combined capacity of 270 GW by 2025. GE
said it has so far delivered more than 12 GW of pumped stor-
age solutions in China, which represent more than 25% of the
installed base in the country.
Australia Closer to Building First Commercial CSP
Power Plant. Australia’s Renewable Energy Agency (ARENA)
on Feb. 13 approved a conditional grant of AU$65 million to
fund Vast Solar’s construction of VS1, a 30-MW/288-MWh
concentrated solar power (CSP) plant in Port Augusta, South
Australia. The grant is conditional upon the AU$203 million
project’s financial close, which is targeted in late 2023. Vast
Solar expects construction of the plant could take two years,
and it anticipates start of commercial operations in late 2025.
ARENA said the project will demonstrate how CSP can pro-
vide reliability and scalable dispatchable renewable energy to
the Australian market. VS1 will use Vast’s modular tower CSP
v3.0 technology, sodium as a heat transfer fluid, and a patent-
ed control system to generate dispatchable power with more
than nine hours of thermal energy storage. The technology
was proven in 2017 at Vast’s 1.1-MW grid-connected demon-
stration project in New South Wales. Vast said it is currently

|
March 2023 POWER
www.powermag.com 13
O&M
Modernizing Cybersecurity unexpected dangers. Lastly, it leads to a ments, both in their enterprise-wide
Practices Within Utilities cybersecurity talent gap where special- context, and with set rules and con-
ized IT/OT architecture skills are lacking. figurations in mind. An enterprise can
The utility industry needs to be prepared execute simulations and evaluations
to adapt at this time of uncertainty and De-Risking IT/OT Convergence on all devices, vulnerabilities, and con-
change, rising prices, and international tur- Today’s business executives must get figurations when using the network
moil. However, it is becoming more chal- ahead of threats by looking around cor- model. Therefore, businesses can
lenging to comply with regulations and ners. Complete visibility and end-to-end use their network model to evaluate
reduce risks as attacks against the infra- teamwork are the pinnacles of secure the efficacy of security controls. Most
structure we depend on for energy, water, network management, and the only importantly, a company also can check
and food are becoming more frequent. way to navigate remediation complex- configurations and changes, identify
According to IBM, the average cost of ity. IT and OT teams need solutions that and precisely measure their exposure,
data breaches rose to $4.4 million glob- advance a collaborative approach to pri- and assess access compliance with
ally, which is a 13% increase from 2020. oritize critical vulnerabilities, strengthen network segmentation regulations.
Skybox Research Lab also observed that security resilience, and reduce down- ■ Remove security blind spots and silos.
organizations with operational technol- time. Here are five steps to de-risk IT/OT Teams can work together to discover
ogy (OT) environments tend to underes- convergence in the utility sector: and prioritize crucial vulnerabilities
timate the risk of a cyberattack, and that by combining and standardizing data
87% acknowledged that they had experi- ■ Establish a mature, reliable, and enter- from various devices. If IT teams im-
enced at least one breach in the previous prise-wide security posture manage- prove visibility, understand what de-
36 months. ment system. Unfortunately, many vices are in scope, how they interact,
The utility industry must protect its businesses are having to play catch-up and what access they have to the en-
critical infrastructure and supply chains when it comes to their security strate- vironment, they can patch accurately
as energy production becomes decen- gies. Teams spend more money on and immediately without interrupting
tralized, more digital, and increasingly point solutions to address yesterday’s production. Teams can also patch gaps
decarbonized. That said, regulatory com- exploitations. This reactive approach using passive assessment technology,
pliance and risk mitigation are more chal- perpetuates a vicious pattern in an at- which finds vulnerabilities in restricted
lenging than ever, and vulnerabilities for tempt to keep up with the ever-changing network areas. For OT risk teams, hav-
utility organizations are increasing at an threat landscape. Organizations should ing access to both active and passive
unprecedented rate. instead concentrate on implementing vulnerability-identifying technology is
a mature and standardized enterprise- crucial for gaining quick insights and
OT Systems in Remote Areas wide security posture management providing scanless detection.
Although no industry is immune from program. With visibility and context ■ By leveraging remediation options
cyberattacks (Figure 1), utility companies across IT and OT environments, utility beyond patching, downtime can be
with OT environments are especially at leaders may minimize risk exposure by reduced. This method enables enter-
risk. It’s understandable to want to bridge streamlining security planning, deploy- prises to determine the most dan-
the OT and information technology (IT) ment, and repair procedures. gerously exposed vulnerabilities and
gap given that centralizing and unifying ■ Implement automated processes to selects the best way to mitigate these
remote management while extracting lower the risk of misconfiguration and risks. This flexibility is essential, partic-
data analytics is equally valuable in board- maintain compliance. In a multivendor ularly in OT environments with stricter
rooms as it is on the factory floor. Howev- environment, the volume and variety requirements. Teams need a solution
er, as a result of closing this gap, access of security controls, rules, and policies
to sensitive data is now possible through required make supervision and change
internet-connected devices, increasing management more difficult. Compli-
the attack surface. Three potential issues ance is also a problem if necessary
are brought on by OT systems’ longevity upgrades aren’t implemented. Work-
and deployment in remote areas. flow automation reduces the chance
First, it makes software obsolescence of misconfigurations by removing hu-
more likely. Software obsolescence hap- man errors, streamlining procedures,
pens when the developer and a desig- and including change processes and
nated third party stop offering regular validation. Teams can also establish
updates, upgrades, and fixes, or when globally applied standards and guaran-
the target environment, systems, and tee future compliance.
hardware change, making the software ■ Develop a common understanding 1. Locking down both operational technol-
inoperable. Second, it is likely to result in among OT, IT, and security. Utilities ogy and information technology systems is
unpatched vulnerabilities because simple must have access to a full view of of critical importance to today’s utilities and
patching techniques may need extensive their attack area. Skybox’s recommen- power generators, as access to sensitive data
change management procedures due to dation is to apply a network model. becomes more available through internet-con-
nected devices. Source: Envato Elements
the possibility of equipment failure or This offers visualization of all environ-

14 www.powermag.com |
POWER March 2023
FOCUS ON O&M
for calculating risk scores for assets
that considers these four crucial fac-
tors—the asset’s measured Common
Vulnerability Scoring System (CVSS)
severity, asset exploitability, asset im-
portance, and asset exposure based
on the security controls and configura-
tions in place throughout the network.

A comprehensive inventory of assets


and vulnerabilities spanning IT and OT
estates is the key to a successful cyber-
security strategy. The utility industry can 2. Utilities and grid operators are preparing for the increased load from charging electric ve-
achieve complete visibility across the hicles (EVs). Having energy storage systems available at charging sites provides better control
attack surface, including third-party net- of electricity demand from EV charging. Source: Envato Elements
works, through comprehensive model-
ing, analytics, and vulnerability detection continuous delivery of power according the right design can provide backup for
that is both passive and active. As a re- to the site needs, and reduce demand the site itself in a blackout period. This
sult, they will be able to better recognize charges or grid strain at the same time. In makes the site more resilient and adds
security threats, take preventative ac- recent years, software technology in the a source of revenue by providing backup
tion to address them, and safeguard the field of energy storage operation has pro- for utilities when needed during times of
most critical assets from vulnerabilities. gressed significantly to include advanced peak demand.
—David Anteliz is senior technical AI algorithms that can monitor the site Matching energy storage with an EMS
director at Skybox Security. and predict its load behavior and patterns and smart charging solution enables dy-
with high accuracy, bringing superior per- namic load balancing and increases grid
Improve Electric Grid Resil- formance and savings to CPOs. flexibility. Moving forward, this approach
ience Through Integration will ensure grid robustness and support
Mass Adoption of Local Peak for versatile loads at disparate locations
of Energy Storage at EV Shaving Could Lessen Need for that would otherwise require a massive
Charging Stations Grid Upgrades infrastructure investment.
By 2030, it’s expected that half of U.S. The demand for electricity at EV charg-
car sales will be electric, and while this is ing stations (Figure 2) has increased Offsetting EV Charging Site
a positive step forward in transportation recently and is expected to grow, as de- Demand Without Reducing Power
decarbonization, this change also comes mand for EVs continues to accelerate. There are many functions and applica-
with challenges and concerns pertaining When the overall demand for electric- tions for energy storage integrations, but
to grid readiness. ity is too high from charging and other currently the main factor driving deploy-
The Biden administration has an- major loads, the grid becomes strained, ments of these systems is a desire to
nounced a plan to install 75,000 miles leading to potential blackouts and other ease site demand charges and facilitate
worth of electric vehicle (EV) charging undesirable grid conditions. quick deployments where utility infra-
stations; however, it is not certain that all Peak shaving allows site operators to structure is not available. The EMS can
desired charging locations are qualified better control and mitigate electricity de- predict the highest peak and strategi-
for these power requirements. New sites mand by leveling out peaks in demand cally discharge the battery when the
might warrant power infrastructure up- while continuously delivering power site reaches that peak. This enables the
grades or be assessed with a utility tariff and reducing charges at the same time. site to peak shave effectively and avoid
structure that can present a challenge to Adapting AI within ESS, site operators demand spikes without having to com-
speedy deployment and add costs. Even can accurately predict load profiles while promise on convenience or user experi-
if such hurdles are overcome, the over- supporting grid operations. ence, which is especially important for
all demand for energy must be closely Peak shaving, when implemented by a direct current fast charging (DCFC).
monitored to avoid a strain on the grid local ESS, can be widely adopted to meet In order to keep up with the energy
that can result in disruptions. electricity demand, and increase grid reli- transition, we must work to support the
In an effort to proactively prepare for ance as the number of EVs grows. This grid and provide local cost-effective ESS.
these challenges, charge point operators also means being able to deploy a charg- ESS and related software developments
(CPOs) can future-proof their upcom- ing station in areas where current utility can fulfill various applications that will
ing installations with the integration of infrastructure is not available, slowing support accelerated use of EVs and grid
local energy storage systems (ESS), down the deployment and impacting re- integration without causing instability or
particularly systems that offer artificial turn on investment (ROI). incurring high costs for operators. ESS
intelligence (AI)-enabled peak shaving Fast charging sites, which may be lo- that are compatible with on-site charging
capabilities. An ESS, combined with en- cated next to a convenience store, su- infrastructure and offer peak-shaving ca-
ergy management system (EMS) soft- permarkets, or other retailers, usually pabilities are available today and only be-
ware that controls its operation, allows include more loads than just a charging coming more economical, more energy
site owners to benefit from a controlled station; therefore, looking at the solu- dense, and quicker to deploy. ■
electricity demand. tion from an operations and mainte- —Avraham Edelstein is vice president of
The EMS’s main task is to provide a nance standpoint, integrating ESS with research and development at Sparkion.

|
March 2023 POWER
www.powermag.com 15
LEGAL & REGULATORY
Renewables Need
More Domestic
Production of
Karol Kahalley, Laura Granier, and Erica Nannini
Minerals
C
limate legislation such as the Inflation Reduction Act, availability, development, and environmentally responsible
which aims to cut U.S. greenhouse gas emissions up to production of domestic resources to meet national material
43% below 2005 levels by 2030, has shifted the already or critical mineral needs.” Congress acted again to encourage
critical need for domestic minerals into overdrive. The ability to the development of domestic supply chains for critical miner-
meet rapidly growing demand depends largely on eliminating als through the Infrastructure and Jobs Act in November 2021,
obstacles to domestic production. which requires agencies to take immediate and constructive
There are immediate opportunities to process permits more actions to increase domestic mineral production.
efficiently under existing laws, such as eliminating unneces- The federal agencies have pockets of excellence that could
sary delays in the Federal Register publication of notices. For provide blueprints for complying with these urgent directives,
example, notices of intent and availability are published to in- and eliminating the unnecessary delay in the Federal Register
form the public that a federal agency intends to prepare an publication process is just one example. While the Interagency
environmental analysis, or will be making a version of that anal- Working Group had launched a broad examination of questions
ysis available for public review and comment. This involves no including possible reform of the 1872 Mining Law, that law
substantive decision, yet could add 12 months to 24 months is a land tenure law. Permitting concerns must be addressed
to the process. through environmental laws. Recent suggestions to change to
The Biden administration has recognized the urgent con- a leasing system for critical minerals could create significant
cerns, including national security, the environment, and human obstacles with litigation and uncertainty in the process, and
rights abuses overseas, that require a shift to domestic pro- have a substantial chilling effect on investment.
duction of critical minerals. President Biden in February 2021 The issue of demand outstripping supply is only worsening.
ordered a review of vulnerabilities in our critical mineral and Lithium demand is expected to grow from 263,000 metric tons
material supply chains. The assessment released in June 2021 in 2019 to 2,114,000 metric tons in 2030. Demand for lithium
found that the U.S. over-reliance on foreign sources and adver- batteries for electric vehicles (EVs) alone is expected to in-
sarial nations for critical minerals and materials posed national crease by more than 1,200% between 2021 and 2040. The lack
and economic security threats, requiring the Department of of lithium supply will be a limiting factor to achieving domestic
the Interior to identify sites where critical minerals could be and global climate change goals.
produced and processed in the U.S. While innovation in renewables production should remain
These efforts build on a decades-long congressional direc- a focus, the need for domestic production of minerals will
tive. More than 40 years ago, Congress declared “the continu- persist. For example, innovative industry efforts to reduce or
ing policy of the United States to promote an adequate and eliminate the need for cobalt in EV batteries are underway to
stable supply of materials necessary to maintain national se- curb U.S. reliance on countries producing cobalt, but nickel is
curity, economic well-being and industrial production” in the used as a primary replacement for cobalt and is also primar-
National Materials and Minerals Policy, Research and Develop- ily sourced outside the U.S. Moving toward increased reliance
ment Act of 1980 (NMMPA). At that time, Congress expressed on untapped domestic critical mineral deposits will ensure that
frustration with the lack of progress in domestic mineral devel- mining practices to procure minerals critical to our green en-
opment 10 years after enacting the Mining and Minerals Policy ergy future adhere to the “highest environmental, labor, and
Act of 1970 (MMPA), which declared a “national interest to sustainability standards” in the world.
foster and encourage private enterprise in the development of The key to walking back U.S. reliance on foreign minerals is
economically sound and stable domestic mining, minerals … immediate action to implement the clear congressional direc-
and mineral reclamation industries.” tives to prioritize permitting efficiencies. Given its vested inter-
With the increasing urgency to reduce the nation’s depen- est in the production of critical minerals, the renewable energy
dence on foreign critical minerals, Congress has now directed industry should be a vocal part of efforts to identify local field
the “Executive Office of the President to act immediately to offices of federal permitting agencies that have successfully
promote the goals contained in the MMPA among the various implemented permitting timelines, and lobby the administra-
departments and agencies,” and amended the NMMPA to re- tion and executive agencies to use those experiences more
quire federal agencies to “avoid duplication of effort, prevent broadly to find efficiencies in the regulatory process. ■
unnecessary paperwork, and minimize delays in the adminis- —Karol Kahalley, Esq. is a minerals expert and of counsel at
tration of applicable laws (including regulations) and the issu- Holland and Hart. Laura Granier, Esq. is a partner at Holland and
ance of permits and authorizations necessary to explore for, Hart, advising energy and mining clients. Erica Nannini, Esq. is
develop, and produce critical minerals.” an associate at Holland and Hart, working with renewable
Congress also mandated that the agencies “facilitate the energy developers and mining companies.

16 www.powermag.com |
POWER March 2023
POWER
YOUR
BUSINESS
with sustainable
cogeneration and
trigeneration
solutions

INNIO*’s flexible, scalable, and resilient Jenbacher*


CHP and CCHP energy systems deliver power, heat
and/or cooling for your local site while supporting
your decarbonization efforts. Yielding up to 95%
total efficiency, cogeneration can reduce your
energy consumption and CO2 emissions by more
than 30% compared to the separate generation of
power and heat, significantly lowering your energy
costs. Combined with heat storage, you can operate
your asset flexibly. Jenbacher CHP and CCHP systems
run on a wide range of gases with the option of
converting to H2** operation once that fuel is more
readily available.

Join us on our path for a sustainable future!


innio.com

* Indicates a trademark.
** Optional scope on demand.

ENERGY SOLUTIONS.
EVERYWHERE, EVERY TIME.
COMBINED HEAT & POWER
A Complex Landscape for
the Future of Combined
Heat and Power
Few power-generating resources present the combination of workhouse abilities
that combined heat and power (CHP) does. But, powered predominantly by fossil
fuels, will CHP find its unique footing within the energy transition?
Sonal Patel
noted Simon Minett, managing director Future growth of CHP at the same

C
onsidering all its hefty attributes, for Challoch Energy and a CHP expert. rate over the next decade, meanwhile,
combined heat and power (CHP)
should thrive as the world races to
transition to an energy system character- How CHP Is Evolving Around the World
ized by more efficiency and lower emis- According to the COGEN World Coali-
sions. The energy resource, sometimes tion (CWC), which represents major
referred to as “cogeneration,” is a long- players in combined heat and power
proven multitasker, generating on-site (CHP), the world’s most developed
power and useful thermal energy using markets for CHP technologies are cen-
different technologies and various fuels. tered in Asia-Pacific, Europe, and the
Its production of two forms of energy Americas, and to a smaller extent, in
is highly efficient—at least when evalu- Africa and Australia. Each region has
ated against comparable separate heat its own characteristics in terms of CHP
and power sources. Some systems can capacity, market sector focus, and fuel
achieve total system efficiencies of more use (Figure 1), Simon Minett, manag-
than 80%. ing director of research and analysis
CHP can vary in size, satisfying distrib- consultancy firm Challoch Energy, said
uted or captive energy requirements for in November.
a variety of end-users, providing heat and While Europe currently produces 1. The COGEN World Coalition estimated
power to hospitals, schools, university 700 TWh of CHP power—mostly that in 2019, more than half (59.39%) of
campuses, hotels, nursing homes, office from steam turbines and combined combined heat and power (CHP) systems
buildings, and apartment complexes, as cycles gas turbines—its share of CHP worldwide relied on coal and coal products,
well as for larger district energy systems, within the total electricity mix of 20% and nearly a third (32.28%) relied on natu-
microgrids, factories and other industry, has fallen, owing in part to the en- ral gas. Less than 1% of the world’s CHP
and even utilities. And perhaps uniquely ergy price crisis. “There’s not much plants were powered by peat, oil shale and
for a distributed resource, CHP is resil- growth in that market. It’s a mature sands, nuclear, geothermal, and renew-
market, and Europe is focusing on a ables like solar and wind. Source: COGEN
ient and can provide crucial reliability:
lot of renewables and electrification, World Coalition
Capable of producing heat and power so we can see some pressure on
24 hours a day, it can be designed to cogeneration there. It has a decent South American CHP markets, which
operate independently from the grid or role to play, but it’s an active policy are much smaller, producing 87 TWh,
implemented with black-start capability debate,” Minett said. rely 70% on biofuels, including bio-
to provide a reliable, cost-effective alter- Europe’s CHP plants, led by Germa- mass, biogas, and waste. Brazil makes
native to installing backup generators. ny, are mostly powered by natural gas, up to 90% of the region’s total CHP ca-
Owing to these attributes, the technol- followed by renewable sources like pacity, he noted.
ogy has enjoyed an expansion worldwide, biofuels and biomass. However, coal The world’s largest CHP market by
surging 30% between 2009 and 2019. still makes up a large share of Eastern far is in the Asia-Pacific region, produc-
Europe’s CHP production. ing nearly 3,000 TWh—a substantial
According to global industry group CO-
North America’s CHP market produc- portion of CHP’s global total of 4,000
GEN World Coalition (CWC), the annual es about 330 TWh, representing about
output of CHP systems in 2019 amount- TWh. “It’s seen steady growth in terms
6.8% of the total electricity mix. This of heat output,” but 68% of that market
ed to 11,200 TWh of heat and 4,159 TWh share has also fallen, even though the is dominated by China, which produces
of electricity, representing just over 15% market has mostly “remained flat over “almost all” its CHP energy from coal,
of total electricity generation. But that the last decade,” Minett said. Natural mainly for district heating, said Minett.
share “has wobbled around,” varying by gas is CHP’s dominant fuel in both the In total, the regional market relies on
region (see sidebar, “How CHP Is Evolv- U.S. and especially Canada, though coal for 75% of its CHP production and
ing Around the World”), and overall, it fuel mixes vary by region. Central and 25% from natural gas.
has diminished amid increasing demand,

18 www.powermag.com |
POWER March 2023
COMBINED HEAT & POWER
appears less certain, owing mainly to that range from 20% to 100%. “Within
CHP’s heavy use of fossil fuel. “The the decade, and in many cases much
big thing we’re seeing in the market is sooner, new CHP systems will be ca-
decarbonization,” noted David Jones, pable of burning 100% clean hydrogen,”
manager of Energy Markets for Virginia- it added. “Existing CHP systems, includ-
based global consulting and technology ing ones installed today, can convert to
services company ICF. “Everybody’s 100% hydrogen at a reasonable cost and
talking about what role CHP will play.” with minimal downtime because these
The pervading concern is that while conversions can occur during scheduled
2. Public power generator Korea East-West
CHP currently reduces emissions com- Power’s (EWP’s) 4.2-MW CHP plant fea- overhauls [which typically occur every
pared to separate heat and power, as re- turing Bloom Energy solid oxide fuel cells 8 to 10 years for baseload units]. These
gional power grids go green, “CHP may (SOFCs) opened in June 2022 in Donghae conversions are possible despite the fact
not be able to reduce emissions any- City, South Korea. The utility uses heat from that CHP systems in the U.S. vary widely
more at some point,” he said. “At that the plant to supply hot water to a swimming in application, design, and size.”
point, they [will need to] incorporate re- pool at the adjacent Bukpyeong Leisure So far, the overall impact and cost-
newable natural gas [RNG] or hydrogen Sports Center. SK Ecoplant developed a efficiency of hydrogen utilization at
to continue reducing carbon emissions.” custom heat recovery system for the proj- larger installations are still under study.
ect. Courtesy: SK Ecoplant.
Siemens Energy, for example, is evalu-
Trends: Smaller Installations That underway are exploring, for example, ating the economics of hydrogen CHP
Cater to Resiliency, Reliability options for new cycles or working fluids, at Duke Energy’s 14.3-MWe/33-MWth
Jones, who is part of ICF’s efforts to controls, and control schemes that will SGT-400 Clemson CHP system at Clem-
maintain a 2002-initiated Department of generally enable a new generation of son University in South Carolina. A mar-
Energy (DOE) database that logs CHP CHP plants to integrate with a dynamic ket for smaller-scale hydrogen-ready
installations in the U.S., noted these smart grid and distributed microgrids. systems, however, is already thriving.
concerns overarch several recent trends In 2012, a pilot 160-kW Agenitor 306
in the CHP market. The most signifi- Bright Prospects for Hydrogen CHP system manufactured by German
cant shift, he said, is that CHP is mov- As Jones pointed out, one of CHP’s big- CHP technology firm 2G Energy at the
ing away from traditional installations, gest selling points has been its ability to Berlin Brandenburg Airport showcased
which were custom-engineered site- boost energy efficiency through reduced 100% hydrogen (wind gas) combus-
specific systems at industrial or institu- fuel consumption. But to secure CHP tion, and 2G has since commissioned
tional facilities. Following a CHP boom system relevance as the transition un- 100% hydrogen–ready reciprocating en-
in the late 1990s, manufacturers and folds, the sector will also need to dem- gine models at three other locations in
developers began offering standardized, onstrate renewable and lower-carbon Germany, one in Scotland, and another
factory-built and ready-to-install pack- fuels, such as RNG and hydrogen, can in Japan. In mid-2023, 2G will kick off
aged CHP systems, prompting a market serve as primary fuel sources for CHP operation of its first North American hy-
shift that integrated smaller commercial systems. The U.S.-based Combined drogen CHP project at an Enbridge Gas
and residential markets. Heat and Power Alliance, a trade group facility in Markham, Ontario (Figure 3).
In the U.S., the shift was bolstered by that works to expand CHP markets, ap- Emily Robertson, a 2G business devel-
the DOE’s publicly available CHP catalog, pears confident industry can achieve this opment team manager, told POWER that
which enabled interested parties to com- so long as critical barriers related to the a fundamental tenet of developing its
pare “different systems that have been production, transportation, and storage
installed—standard systems, with stan- of “clean” hydrogen are addressed.
dard inputs and outputs,” Jones noted. The group pointed to sectoral-wide
Bolstered with inclusive contracts, the benefits for hydrogen utilization in CHP—
packages shorten CHP system procure- or “CHP 2.0.” Along with allowing CHP
ment, simplify installation, and alleviate systems to “reduce emissions even fur-
maintenance concerns—attributes at- ther across the industrial, commercial,
tractive to smaller, non-traditional end- and municipal sectors,” CHP systems
users like multi-family buildings and could use these fuels efficiently, “requir-
smaller commercial, institutional facili- ing [fewer] lower-carbon fuel inputs for
ties, and manufacturing outfits, he said. the same energy outputs compared to
Meanwhile, CHP’s economics have other generation units,” it said. “Efficient
improved substantially over the past two use of hydrogen fuel should be central to
decades, driven partly by improvements any hydrogen and climate strategy, and 3. Enbridge Gas is building North America’s
in gas engine and turbine technologies CHP helps meet this goal.” Moreover, first CHP system that will eventually run on
concerning power, efficiency, durability, as a distributed resource, CHP hydrogen 100% hydrogen to energize its Technology
emissions, and time or cost to market. utilization would bolster renewables inte- Operations Centre (TOC) in Markham, Ontar-
However, all equipment manufacturers gration, microgrid deployment, and ener- io. The project’s 115-kW 2G Agenitor engine
are striving to improve the efficiency, gy storage, as well as adapt to hydrogen will initially operate with a minimum blend of
reliability, and emission profiles of prime blending in gas infrastructure, it said. 25% hydrogen and 75% natural gas. Enbridge
mover technologies, including recipro- The CHP Alliance noted that existing estimates the CHP system could consume
cating engines, gas turbines, microtur- and newly installed CHP systems al- approximately 78,000 kilograms of hydrogen
annually. Courtesy: 2G
bines, and fuel cells (Figure 2). Initiatives ready use hydrogen fuel blend volumes

|
March 2023 POWER
www.powermag.com 19
COMBINED HEAT & POWER
and/or energy storage) to engineer and
optimize combined systems.
“A hybrid CHP system can provide
maximum resilience with minimal fossil
fuel emissions when configured as a mi-
crogrid. In a typical hybrid configuration
with CHP, solar PV, and energy storage,
CHP would be used for baseload power
and heat, while PV and storage are used
opportunistically to maximize renewable
output and participate in utility markets
for grid services,” the DOE said.
However, a key challenge associated
with microgrid CHP and hybrid CHP in-
volves establishing teams of DER de-
velopers and financiers that can deliver
multi-technology solutions. The prod-
4. Danish utility Brønderslev Forsyning in 2018 replaced seven gas-fired CHP units and began uct is complex, and simplified power
operating a district heating plant that utilizes two wood chip boilers, heat pumps, and solar heat- purchase agreements (PPAs) with no
ing from a 27,000-square-meter parabolic trough concentrated solar power plant supplied by capital investment will likely be needed
Denmark’s Aalborg CSP. The boilers and solar heat supply energy to a Turboden Organic Rankine to attract end-users. The agency not-
Cycle (ORC) turbine. During the summer months, the wood chip boilers can be shut down and ed that more experience gained with
the solar collectors take over heat production. The ORC system converts 20 MWth into 4 MWe these systems could ultimately lead to
and 15 MWth. Courtesy: Brønderslev Forsyning standardized packages.

fleet of hydrogen-ready Agenitor engines low-carbon fuel alternative are “rela- Incentives and Future Profitability
was to “future-proof” 2G’s CHP systems tively lacking.” Still, experts suggested that tackling
and provide 2G’s customers with crucial CHP’s capital-intensive investment re-
fuel flexibility. “Fuel flexibility is hugely Emerging Potential: CHP Hybrids quirements, as well as market and regu-
important to many end-users. The abil- To thrive in decarbonized markets, the latory barriers, could ultimately require
ity to fuel blend for biogas and natural CHP sector will also need to address broader efforts. The U.S.-based CHP Al-
gas is key to many biogas installations. myriad other challenges, experts told liance is hopeful that the August 2022–
In addition, the ability to blend hydrogen POWER. These include securing high enacted Inflation Reduction Act (IRA) will
is absolutely boosting CHP’s efficiencies utilization rates, and ensuring reliabil- spur new development. Under the IRA,
and flexibilities,” she said. “2G’s natural ity, efficiency, and flexibility—all while investment tax credits will be available
gas CHP systems can blend up to 40% minimizing capital, infrastructure, and in- to qualifying CHP systems that begin
hydrogen. Those same systems can be tegration needs associated with carbon- construction before January 2025. CHP
retrofitted later in the field to 100% hy- intensive processes. projects that start construction after that
drogen. If this is done at the time of the One emerging solution entails explor- date may be eligible for production tax
engine’s major overhaul, it can be cost- ing hybrid system design and operation. credits only “if the project yields zero-
effective,” she said. The optimized combination of solar, greenhouse gas emissions,” the alliance
The CHP Alliance is hopeful hydro- storage, and CHP could provide “long- stressed. The IRA, however, also pro-
gen barriers will soon be resolved. For duration, on-site energy for sites with vides tax credits for clean hydrogen pro-
more near-term prospects, the group high-resilience needs with the least pos- duction, the group noted.
points to biogas and RNG (also known sible carbon emissions,” Jones noted. On the market front, evolving opportu-
as biomethane), commercial fuels that A few projects are already pairing high- nities include the outgrowth of PPA-style
it says “can be implemented immedi- temperature renewable sources with contracts (which can be designed for
ately.” While CHP systems have long CHP solutions. An example is Danish heat and power purchases). These con-
used digester and biogas as fuel sourc- utility Brønderslev Forsyning’s district tracts allow developers to own, operate,
es, farm waste and food waste facilities heating plant in northern Denmark. and maintain systems, allowing com-
represent significant emerging sources Meanwhile, as CHP’s inherent reliabili- mercial or smaller facility owners to ben-
for biogas production. RNG, mean- ty and resilience attributes have bolstered efit from CHP’s myriad benefits without
while, can be generated from the direct its uptake in microgrids, a new category committing to maintaining the energy
gasification or pyrolysis of biomass. of microgrid installations—hybrid CHP source. Along with these opportunities,
“The high methane content of RNG al- systems—also appears to be emerging. state-driven efforts to boost distributed
lows for full compatibility within natural According to the DOE, these systems in- generation are cleaving new pathways
gas appliances and pipeline systems. corporate a combination of CHP and oth- for non-traditional CHP entrants. Utilities,
CHP fleets that run on natural gas re- er distributed energy resources (DERs) for example, are integrating CHP into en-
quire minimal upgrades to be fueled in a single installation. As opposed to the ergy efficiency portfolios or becoming
by RNG and would produce immediate piecemeal installation of DERs, the defin- owners and operators of CHP systems
emission reductions by transitioning,” ing characteristic of hybrid CHP systems at customer sites. ■
the CHP Alliance noted. However, the is coordination between developers of dif- —Sonal Patel is a POWER
group acknowledges feedstocks for the ferent DER technologies (such as CHP, PV, senior associate editor.

20 www.powermag.com |
POWER March 2023
Gas Turbine Parts
Lifetime Extension Clinic
Read three case study examples at www.MDAturbines.com/Clinic

Mechanical Dynamics & Analysis (MD&A) can extend the service life of gas turbine components
whose OEM service limit has passed or whose configuration is no longer suitable to operate.
Significant savings can be realized by opting for lower-cost repaired spares instead of new parts.

Our experts at the San Antonio Service Center combine years of experience with state-of-the-art
equipment to deliver the right solutions to you.

MD&A’s San Antonio Service Center


6948 Fairgrounds Pkwy | San Antonio, TX 78238
Ph: +1 (210) 256-5000 | www.MDAturbines.com

PARTS | SERVICES | REPAIRS


ENERGY STORAGE
New Technologies,
New Sites Supporting
Growth of Energy Storage
Advancements in energy storage, including new battery types and longer-duration
batteries, are driving innovation in the sector. Retired power generation plants are
being repurposed as storage sites, and the residential and commercial and industrial
(C&I) sectors are turning to storage for electricity reliability and resilience.
Darrell Proctor
lion in 2022, representing year-over-year demand hours. For renewable energy

T
he U.S. and global market for energy growth of about 29%, according to a to meaningfully displace baseload fos-
storage continues to grow, in large January 2023 report from Research and sil fuel generation, it must be deployed
part aligning with increased deploy- Markets, a global market research group. alongside storage.”
ment of renewable energy facilities. Bat- The report said growth in the sector is Ryan Brown, CEO and co-founder
tery energy storage systems (BESS), expected to top $11 billion in 2026—or of Canada’s Salient Energy, said, “The
which store the energy from solar arrays, total growth of another 150% in the next growth in energy storage will definitely
wind farms, and more, are being used to four years. continue. Energy storage is critical to in-
help balance the power grid, and provide Energy storage, whether from batter- tegrating large amounts of wind and so-
more reliability and resiliency, along with ies, pumped hydropower, thermal sys- lar power into the grid.” Brown, whose
other ancillary services. tems, or other technology, is benefiting company develops zinc-ion batteries for
Colin Touhey, CEO of Pvilion, a de- from the move toward the electrification stationary energy storage, told POWER:
veloper of innovative fabric-based solar of transportation, along with an empha- “Governments have set aggressive tar-
power equipment and whose customers sis on electrification of the commercial gets for renewable penetration that will
include the U.S. Air Force, told POWER, and industrial, as well as residential, only be possible with significant invest-
“Energy storage will become ubiquitous sectors. ment in energy storage. I believe these
as an integral part of the grid. This growth “Energy storage is the foundation targets will be taken seriously for two
will continue and will only slow when all from which all renewable-sourced de- main reasons. First, the increasing oc-
potential grid options are saturated.” carbonization efforts must be built,” said currence of extreme weather is making
What has been touted as the “Energy Matt Clenchy, analyst with Orennia, a climate change an increasingly important
Storage Decade” by industry analysts technology company that provides data issue to everyday people. Second, Rus-
and others has lived up to that billing, de- and analytics on the energy transition sia’s attempt to weaponize the EU’s [Eu-
spite hiccups caused by the coronavirus for investors. “Renewable energy is in- ropean Union’s] dependence on its natural
pandemic and associated supply chain termittent … because of this, high levels gas has caused lawmakers to view the
issues. The global battery energy storage of renewable penetration can threaten transition to renewable energy as criti-
system market was expected to increase grid reliability, so grid operators rely on cal to national security. So, the growth
from $3.36 billion in 2021 to $4.34 bil- energy storage to shift energy to peak in energy storage will continue because
it is driven by issues that are becoming
increasingly important and urgent.”

New Battery Tech


New battery technologies are being de-
ployed for both economic and safety
reasons, with energy company execu-
tives telling POWER that alternatives to
lithium-ion will be needed to satisfy the
increased demand for storage.
“The ‘Decade of Energy Storage’? This
is the Energy Storage Era!” said Josef
Daniel-Ivad, manager of the Zinc Battery
Initiative. “Stationary energy storage ca-
pacity is forecast for 1.2 TWh by 2030
and a mind-boggling 9 TWh by 2050.
To meet this high demand, we need all
1. The Waratah energy storage facility is being built in Australia at the site of a former coal-fired types of sustainable, scalable batteries.”
power plant. It is expected to come online in 2025. Courtesy: Powin
“Building owners and operators are

22 www.powermag.com |
POWER March 2023
REGISTER NOW!
June 25-28, 2023
Marriott New Orleans Hotel | New Orleans, LA
connectedplantconference.com
Digital technology improvements and an ever-growing field of applications
are reshaping the power and chemical process industries. Stay on top of key
trends and possibilities at the Connected Plant Conference –
the ONLY event covering digital transformation/digitalization for the
power and chemical process industries.
Hosted by: Diamond Sponsor:

Please visit connectedplantconference.com


for the most up-to-date event information. Follow us on:

POWER GENERATION • PETROCHEMICALS • NUCLEAR • GAS • RENEWABLES • COAL


TRANSMISSION & DISTRIBUTION • SPECIALTY CHEMICALS • PLASTICS • PHARMACEUTICALS
OIL & GAS • REFINING • METALS & MINING • PULP & PAPER

41848
ENERGY STORAGE
into a battery energy storage facility as
part of a $1 billion project. Starwood
said it will do the same with the Cham-
bers Cogeneration Plant in Carneys
Point, which Starwood also closed last
year and will dismantle.
U.S. battery specialist Powin, and en-
ergy investment firm BlackRock, have
started work on a 909-MW/1,915-MWh
BESS in Australia. BlackRock-owned
Akaysha Energy is developing the
Waratah Super Battery Project (Figure
1) north of Sydney, on the site of the
former 1.4-GW Munmorah coal-fired
power station.
Some projects are being designed
specifically to meet market require-
ments for fast frequency response.
Glidepath Energy recently launched op-
eration of its new Byrd Ranch Storage
2. Tesla built the 98-MW/196-MWh Pillswood battery facility in the UK using its Megapack Project, a standalone energy storage fa-
technology. It is expected to support the massive Dogger Bank offshore wind project. Courtesy: cility near Houston, Texas, for which IHI
Harmony Energy Income Trust
Terrasun was the integrator, power plant
rejecting lithium-ion batteries due to Decarbonization and Sustainability controls software developer, and lifetime
their safety concerns, dwindling avail- Demand is rising for energy storage services provider. Energy storage is con-
ability, and rising costs,” said Yaron Ben as the technology is being included in sidered an important part of keeping the
Nun, founder and chief technology offi- decarbonization and sustainability pro- troubled Texas power grid more reliable
cer for Nostromo Energy. “Instead, ho- grams. It also is being used to support and resilient. Terrasun’s software will
tels, data centers, and other commercial the grid integration of more renewable meet the Energy Reliability Council of
buildings are turning to a new generation energy resources. Texas’ (ERCOT’s) strict market require-
of alternative storage solutions that are Jason Burwen, vice president of En- ments for fast frequency response.
non-flammable and non-toxic. With the ergy Storage at the American Clean “It’s likely that battery installations
emergence of new thermal energy stor- Power Association, said recently, “De- will continue to permeate a variety
age technologies, in 2023, commercial mand for energy storage is at an all-time of applications, not just as replace-
buildings will turn to cleaner, cheaper, high, driven by sustained higher energy ments for thermal generation through
and more reliable ways to power their prices, state decarbonization mandates, large-scale projects,” said Ray Saka,
cooling systems, which can account for and Inflation Reduction Act incentives. Terrasun’s vice president of Sales and
over half of their energy use.” California’s reliance on energy storage Service. “Green Mountain Power, a util-
Daniel-Ivad, in noting new technolo- to meet record peak demand this Sep- ity in Vermont, ran a pilot virtual power
gies in addition to traditional lithium-ion, tember [2022] shows why it’s absolutely plant (VPP) project to install 2,000 bat-
told POWER, “Zinc batteries already pro- critical that policymakers and grid opera- teries in customers’ homes who had
vide superior stationary storage and are tors remove barriers to supply to ensure solar panels on their roofs. The utility
poised to meet e-mobility demands, giv- reliability. The rapid increase in grid-scale discharged the batteries from their own
en zinc’s abundance, secure and stable storage capacity requesting to connect controller during peak summer heat
supply, non-flammability, and competitive to the grid demonstrates that the pace events, thereby decreasing the need for
advantages.” of U.S. industry growth is increasingly the ISO [independent system operator]
Mukesh Chatter, co-founder, CEO, dependent on the availability of transmis- to dispatch peaker plants, saving the
and president of Alsym Energy, said, “In sion and timely grid access.” ratepayers money and headaches for
2023, we will witness the emergence Some of the increase in storage ca- the operators.”
of a new generation of non-lithium, pacity will come from projects that are
non-flammable batteries that will take helping repurpose sites where thermal Long-Duration Systems
on the challenge of filling the gap and power plants have been retired. The last Energy industry experts agree that de-
successfully facilitating the shift from two operating coal-fired power plants in velopment of long-duration storage is
fossil fuels to solar and wind.” Chatter New Jersey will get new life as home critical for sector growth. Joe Zhou, CEO
told POWER, “As we strive to execute to battery energy storage systems, and of Quidnet Energy, told POWER about
the clean energy transition, increasing a major BESS project is being built in his company’s geomechanical pumped
the volume of available energy storage Australia at the site of a former coal-fired storage (GPS) technology.
alone is not enough. BloombergNEF re- generation facility. “Most energy storage now being de-
search suggests 20x growth in global The Logan Generating Plant in Logan ployed is short duration, meaning batter-
energy storage capacity by 2030—this Township in New Jersey’s Gloucester ies that can typically provide power for
will only meet approximately 25% of County was imploded in December up to four hours. While this is useful for
the storage needed to support the rise 2022. Starwood Energy, the plant’s shorter-term backup, peak shaving, and
in clean energy generation.” owner, has said the site will be turned some ancillary services, long-duration

24 www.powermag.com |
POWER March 2023
ENERGY STORAGE
storage is essential for the widespread will be the world’s largest offshore
integration of large-scale clean energy,” wind farm when it comes online in the
Zhou said. next few years. Harmony Energy, a UK-
“Such resources also need to be cost- based energy storage developer, said
effective, and ideally leverage existing the battery will help UK power network
technology. That’s where geomechanical operator National Grid “maximize the
pumped storage comes in,” said Zhou. efficiency of wind farms by reducing
“GPS takes a proven concept for long- the amount of time [they] need to be
duration storage, pumped hydro, and curtailed due to supply/demand imbal-
makes it possible to more widely deploy ances or network constraints.”
it at a fraction of the cost. While pumped Australia-based Redflow has a
hydro is the dominant form of long-du- 2-MWh flow battery-based ESS (Figure
ration energy storage, relying mostly on 3) at Anaergia’s Rialto Bioenergy Facil-
gravity to generate power from hydro- ity in San Bernardino County, California. 3. This Redflow battery system is powering
electric turbines, it can only be deployed The system includes 192 zinc-bromine Anaergia’s Rialto Bioenergy Facility in Califor-
in areas with mountainous terrain. GPS flow batteries housed in a dozen 160- nia. Courtesy: Zinc Battery Initiative
removes this constraint, as it can be in- kWh Redflow Energy Pod units, which
stalled in areas of flat land.” are clustered into four strings, and tied ample, solar installations on homes are
The U.S. Department of Energy (DOE) to four 125-kW Dynapower inverters. ubiquitous and easy to do. The same
late last year announced Quidnet Ener- The Rialto Bioenergy Facility is convert- types of building code changes that oc-
gy would receive $10 million in funding ing as much as 700 tons of food waste curred in the solar industry need to hap-
from the agency’s Advanced Research and 300 tons of biosolids per day into pen in the storage industry.”
Projects Agency-Energy (ARPA-E). The renewable natural gas, renewable elec- A project recently announced in New
funding is part of the ARPA-E Seeding tricity, and organic fertilizer. York is supported by a state program
Critical Advances for Leading Energy designed to encourage development of
technologies with Untapped Potential Challenges Remain distributed energy resources, including
(SCALEUP) program, which provides fur- Even with substantial growth expected energy storage, to increase power grid
ther funding to previous ARPA-E teams for energy storage, there remain hurdles. resiliency. CIT, a division of First Citizens
that have been determined to be feasi- Andy Tang, vice president of Energy Stor- Bank, in December 2022 said its Power
ble for widespread U.S. deployment and age and Optimization with Wärtsilä, told and Energy business served as co-coor-
commercialization. Companies in the POWER, “Persistent supply chain con- dinating lead arranger on an $85 million
SCALEUP program demonstrate a viable straints caused by the COVID pandemic construction-to-term debt financing for
path to commercial deployment for their and fierce competition for raw battery NineDot Energy, which develops distrib-
technology, and the ability to attract pri- materials with the transition to electric uted community energy projects in the
vate sector investments. vehicles will continue to cause energy New York City area. NineDot, a portfolio
“We’re honored that ARPA-E has se- storage project delays in 2023.” company of the global investment firm
lected Quidnet Energy as an awardee Tang continued: “There’s been a major Carlyle Group, will use the funding to de-
of the SCALEUP program,” said Zhou. policy push to establish regional supply velop 11 standalone battery storage proj-
“This funding will support continued chains in Europe and the U.S., but the ects totaling 43 MW of capacity across
work on our [GPS] project with CPS new factories won’t come online until the Bronx, Staten Island, Queens, and
Energy, which will demonstrate the 2024 or 2025 at the earliest. We antici- Long Island.
benefits of using proven pumped hydro pate increased investment in alternative “NineDot Energy’s battery storage
technology to create a long-duration en- battery chemistries next year to alleviate installations will be an increasingly im-
ergy storage resource that doesn’t re- these concerns.” portant contributor to the New York City
quire mountainous terrain.” “Energy storage systems are an metro area’s grid resiliency and a valu-
Quidnet Energy will scale its GPS to a imperative part of the emerging en- able infrastructure component to sup-
1-MW/10-MWh commercial system that ergy mix, primarily as a mechanism port renewable power in urban settings,”
will provide CPS Energy with 10-plus to maintain grid security and address said David Arfin, NineDot Energy CEO
hours of long-duration energy storage. the intermittency of renewable energy and co-founder.
A Tesla battery is featured at an en- to a large extent,” said Tejas Kusurkar, The New York project is an example
ergy storage project in northeast Eng- CEO and co-founder of Offgrid Energy of the partnerships Touhey said will be
land, near the grid connection point Labs. “Batteries for power backup ap- needed to support investment in energy
for the massive Dogger Bank offshore plications is a major market among storage, with utilities and other energy
wind farm. Tesla built the 98-MW/196- stationary applications. While market companies working together with gov-
MWh Pillswood battery (Figure 2) mechanisms are expected to incentiv- ernment and private groups to promote
using its Megapack technology for Har- ize the adoption of ESS, regulatory and financial backing. “It will need to be a
mony Energy Income Trust, which is industry foresight will be key drivers to partnership model, with the government
investing in large-scale storage assets accelerating growth.” providing incentives and doing their own
around the UK. Pvilion’s Tuohey also noted how reg- projects as well as private industry lead-
The site is located near Hull, close ulation could slow growth in energy ing the charge on new innovation and
to the Creyke Beck substation that will storage. “The regulatory hurdles make growth,” he said. ■
connect 2.4 GW of the eventual 3.6 energy storage more expensive than —Darrell Proctor is a senior associate
GW of the Dogger Bank project, which it needs to be,” Tuohey said. “As an ex- editor for POWER.

|
March 2023 POWER
www.powermag.com 25
POWER MARKET ANALYSIS
The Challenges and
Opportunities Facing Power
Companies Today
The power system is changing and electricity suppliers need to adapt or get left
behind. Experts weigh in on what leaders should be focusing on and how these
items will affect utilities in the future.
Aaron Larson
Power Sector Mergers and Acquisitions

T
he power industry has experienced
a whirlwind of activity in recent After a record-setting year for power energy-as-a-service providers, ad-
years. In fact, some insiders might and renewables mergers and acqui- vanced demand response platforms/
argue that there’s never been more sitions (M&A) in 2021, there was a aggregators, carbon accounting, and
change in the power system since the marked reduction in deals last year. behind-the-meter clean back-up gen-
grid’s inception than what we’ve seen “2022 activity was down slightly but eration technologies are experiencing
over the past 10 to 15 years. The trans- a bit of a renaissance,” Klingel said.
in line with what we expected given
“It’s also important to note the growth
formation goes beyond just the forms rising interest rates and the deterio- and market interest in the service pro-
of generation being deployed; it also rating macro environment in the back viders that design, engineer, build,
extends to technology utilized to oper- half of the year,” Ryan Luther, senior and maintain both emerging and tradi-
ate and monitor the system, customer vice president of Enverus Intelligence tional grid infrastructure. Those firms
and employee expectations, and what it Research, told POWER. “M&A mul- will be the architects of the backbone
means to be sustainable. Looking ahead, tiples for generation pipelines have for the clean energy transition.”
artificial intelligence and machine learn- to stay competitive with the cost GlobalData, a data and analysis so-
ing could result in even greater changes of new builds, so we expect M&A lutions provider, issued a report on
in the not-to-distant future. prices to fall this year as the Infla- Feb. 3 that showed the value of power
“Many utilities have been investing sector M&A deals completed by the
tion Reduction Act pushes down the
industry’s top 10 financial advisors last
time and capital into becoming more cost of new renewable builds. Energy year was less than half the value of
than just providers of reliable service. storage startups have been growing those completed by the top 10 advi-
Customers expect predictable and af- rapidly and earning outsized returns, sors in 2021 ($204.221 billion versus
fordable electric service, but the level of but it’s a capital-intensive business $467.338 billion). Yet, while the value
service, bill transparency, triage and res- and we’re expecting a record level of of deals was down more than 56% in
toration from outages, as well as menu storage deployments in 2023 and a the survey, the number of deals facili-
of additional and complementary ser- pick-up in grid storage deals to meet tated by the top 10 advisors based on
vices, continues to expand and evolve,” those capital needs.” volume was only down 19%.
Jeremy Klingel, senior partner for West Jeremy Klingel, senior partner for Meanwhile, Klingel noted that a
Monroe’s Energy and Utilities practice, West Monroe’s Energy and Utilities trend has developed in which utili-
practice, said his group continues to ties are spinning off businesses in
told POWER. “This isn’t to take away
see private equity firms showing inter- competitive markets. “There are a
from the commitment and complexity of number of regulated utilities doubling
remaining a provider of last resort, but an est in clean technology, renewable en-
ergy, and critical infrastructure. “While down on their core business as in-
emerging requirement to further serve vestor-owned utilities are considering
large-scale renewable energy assets/
and collaborate with all customer class- portfolios make many of the headlines the divestiture of their non-regulated
es (large, small, disadvantaged, etc.) to due to their size, the volume and mar- businesses, particularly large-scale
enable additional resiliency, support ESG ket interest in battery energy storage, renewable portfolios,” he said.
[environmental, social, and governance]
goals, and chart a practical path to cost- Acquisitions”). Among items they said temporary freeze on tariffs from select
effective beneficial electrification.” electric utilities needed to watch were countries, to the general increase in the
supply chain issues, decarbonization minerals intensity we are going to need
Challenges Exist, Leading to trends, workforce capabilities, and reli- to realize a more than 14x increase in
Opportunities ability and resiliency requirements. carbon-neutral technologies, these all
To get a better understanding of how the “The supply chain is all sorts of impact the energy evolution in meaning-
landscape is changing, and what chal- messed up,” said Sarp Ozkan, vice presi- fully negative ways.”
lenges and opportunities exist, POWER dent of Commercial Product at Enverus. Yet, there are a number of ways power
engaged with a handful of industry ex- “From the general supply chain issues companies can improve prospects for
perts to get their perspectives (see globally, to the Auxin anti-dumping/ success in the near- to mid-term. Scott
sidebar “Power Sector Mergers and anti-circumvention inquiry, to Biden’s Tinkler, a managing director and global

26 www.powermag.com |
POWER March 2023
POWER MARKET ANALYSIS

2022 Record Year for Corporate PPAs


The American Clean Power Associa- Amazon (Figure 2), Meta, and Google.
tion (ACP) released a report on Jan. 18 Technology companies have contract-
showing corporations had set a new ed more clean energy than any other
record for energy purchases last year. industry, according to the ACP.
The ACP said commercial and industri- Prices for solar PPAs have continued
to increase in North America, accord-
al (C&I) companies are driving demand
ing to LevelTen Energy, a provider of
for renewable power and accelerating renewable transaction infrastructure,
the clean energy transition through but the company said wind PPA prices
purchases of electricity directly from fell in the fourth quarter of 2022 for the
wind, solar, and energy storage plants. first time in nearly two years. LevelTen
“Even as power purchase agree- Energy reported its P25 wind index,
ment (PPA) prices increased, corpora- which represents the market aver-
tions purchased nearly 20 gigawatts age of the 25th percentile PPA price,
(GW) of clean energy in 2022, more dropped 1.9% to $48.71 per MWh.
than 4 GW higher than any previous Meanwhile, it said solar PPA prices
year. By the end of the year, over 300 climbed 8.2% to $45.66 per MWh.
corporations had contracted more than “We hope that falling wind prices
77 GW of clean energy,” the ACP said. mean that they are beginning to stabi-
“Economic and environmental ben- lize, thanks to factors like the Inflation
efits, as well as growing pressure on Reduction Act,” Gia Clark, senior direc-
corporations to meet sustainability tar- tor of Developer Services at LevelTen
gets, have led to a 100-times increase Energy, said in a statement issued
1. Underground power lines are more reli- in corporate clean power procurement with the report. Clark said solar prices
able than overhead lines, particularly during over the past decade. During that continue to increase because of stiff
hurricanes and severe weather. Florida Pow- same period, solar and wind costs supply chain challenges. “The Uyghur
er and Light says it has been installing un- have decreased 71% and 47% respec- Forced Labor Prevention Act (UFLPA),
derground service for decades and has about tively, making both more attractive to while an important safeguard of human
45% of its distribution system underground corporate energy buyers,” JC Sand- rights, has slowed module imports to a
today. The work shown here was done in berg, interim CEO and Chief Strategy trickle, impacting project development
Port Charlotte, Florida, after Hurricane Ian. Officer at the ACP, said in a statement schedules and prices, and PPA deals.
Source: POWER announcing findings from the report. Hopefully UFLPA compliance proce-
The ACP said 326 companies had dures will become more efficient so
PPAs in place for at least some of their that we can see some relief for solar
utilities lead at Accenture, said, “Acquir- power at the end of the year, led by prices, too,” she said.
ing the talent for the energy transition is
paramount, starting with identifying all
the skills needed, and then training and
reskilling workers to do these jobs.”
Tinkler continued: “Becoming more
resilient to energy shocks is also critical,
which will require more effective man-
agement of cost structures to combat
inflation and high interest rates while
reimagining supply chain operations to
balance global disruptions. Looking a bit
further forward, some important areas
include grid modernization to support
the rapid development of low-carbon 2. Amazon announced on Jan. 31 that it had set a new record for “most renewable energy
infrastructure, and accelerating the shift purchased by a single company.” Its renewable energy portfolio now totals more than 20
to clean energy technologies and inte- GW across 401 projects in 22 countries, including 8.3 GW through 133 new projects added
grating more renewables into their gen- in 2022. Courtesy: Amazon
eration portfolios. Lastly, reevaluating
strategies and approaches to regulatory changes in book value of installed gen- electric grid reliability.”
affairs, including rate case development, eration assets,” he said. “While some Added West Monroe’s Klingel, “De-
permitting, and consenting will be vital.” asset types will more quickly lose favor, carbonization gets a significant amount
Tony Carrino, director of Power and others will be deemed more necessary, of airtime and tends to center on utilities’
Utilities with Solomon Associates, sug- resulting in a repricing of assets in pur- own generation fleets many times. While
gested utility leaders should take a good chases and sales. This repricing will likely that transition to cleaner fuel should con-
look at their assets and develop plans to occur for two reasons: the relative envi- tinue, the move to a more sustainable
adjust resources to better fit the future. ronmental impacts of each generation energy economy will be greatly fueled by
“The potential exists for a significant re- technology and the realization of what the commercial and industrial (C&I) sec-
valuation of generation assets by tech- becomes the ‘optimum mix’ of genera- tor. We are approaching a bit of an inflec-
nology in the coming years. It will affect tion technologies to recover and sustain tion point where utilities can become a

|
March 2023 POWER
www.powermag.com 27
POWER MARKET ANALYSIS
partner to the C&I market and help guide pact on costs and customer affordability.” critical and many times costly. The timing
that journey to cleaner, more efficient “The increasing tax credits that are of those investments must be balanced
energy operations. However, it will re- going to be created by the IRA will need and thoughtful, and I don’t think anyone
quire an enhanced tool kit of distributed to be monetized,” said Ozkan. “With has completely cracked the code, or that
resources to complement and, at times, transferability (the ability to sell tax cred- there’s a ready-made blueprint,” he said.
supplement traditional T&D [transmis- its for cash), tax credits will be sold for Enverus is likewise concerned. Said
sion and distribution] infrastructure.” less than 100 cents on the dollar. Tax Ozkan, “We are particularly concerned
Klingel suggested investments in resil- equity structures will be more adept at about transmission. The IRA was great
iency are important (Figure 1). “Resiliency utilizing tax credits more efficiently, but for renewables and carbon-neutral tech-
cannot be undervalued, yet it is difficult continue to be useful to only those who nology investments in general, but what
to value in the traditional (utility) capital can get it. So, how well the tax credits was markedly missing was any incentives
investment sense,” he said. “Climatic can be monetized via transferability will for the grid buildout necessary to handle
events, wildfires, hurricanes, or polar vor- eventually become an issue for how well the changes. The lack of investment in the
tex are year-round and not just an occa- capitalized these projects will be.” grid has been disillusioning for those who
sional black swan. The balance between But Carrino suggested more needs have been looking at the big picture of the
physical infrastructure investment and vir- to be done to enhance the power grid energy evolution and its needs.”
tual infrastructure to balance and bolster itself. “In the Inflation Reduction Act Ozkan noted developers and end-con-
the grid is going to be critical.” of 2022, the proportion of spending al- sumers are showing frustration as more
located to new wind and solar project projects become contingent on high in-
How the IRA Is Influencing the development is far greater than what terconnection costs and reliability contin-
Industry is allocated to high-voltage transmis- ues to be an issue on extreme-weather
Heading into 2023, one of the most im- sion systems. In fact, the transmission days. “Currently, it all lives and dies with
pactful drivers influencing U.S. power grid continues to lose ground to new the IRA,” he said. “Understanding well
markets (see sidebar “2022 Record Year renewable projects, causing increasing the opportunities to take advantage of
for Corporate PPAs”) has been the signif- curtailments of renewables because the the adders that take the tax credits even
icant incentives contained in the historic transmission system has not kept up in higher will be important.”
Inflation Reduction Act (IRA) passed in several U.S. markets,” Carrino said. “The
August last year. “These incentives can UK electric market is a great example Power Market Wild Cards
supercharge investment in solar, wind, of the high consumer prices that result The evolution of decarbonization strat-
and energy storage—along with tax when payments are made to curtail over- egies is sure to transform the power
credits that will buoy market prices for generation from renewables while other system further. Accenture is focused on
carbon-free nuclear power,” said Tinkler. generation still must run due to system three potentially important market driv-
“There will also be significant opportuni- imbalances,” he added. ers. “Among the exciting trends we’re
ties for power and utility companies to Noting similar worries, Klingel said, watching is how fast EV demand can be
drive growth from clean hydrogen to put “We cannot underestimate the im- met and charging infrastructure can be
it at par with conventional hydrogen, with portance of underlying infrastructure, rolled out to meet this demand. Another
the ability to pair credits with renewable particularly in the transmission and dis- is how clean hydrogen can be integrated
energy projects. Headwinds impacting tribution space. The system upgrades into power markets. A third is how the
this clean energy surge include contin- required to support things like building drive for net-zero emissions is requiring
ued supply chain-related challenges, and electrification, new electric vehicle [EV] power companies and all stakeholders to
managing persistent inflation and its im- load, and economic development will be think beyond electricity to envision how
the power market will integrate with eco-
nomic sectors such as natural gas, trans-
portation, water, and waste,” Tinkler said.
Referencing a recent study, Tinkler ex-
plained how a UK vehicle-to-grid charg-
ing infrastructure project (Figure 3) had
enabled more than three million “free”
miles for customers, who had made
money by exporting electricity stored in
their EVs back to the grid at peak times.
“Opportunities like this are extremely ex-
citing,” he said.
“We are at the dawn of a next-gener-
ation power market, one where utilities
will play a prominent role, but requires
an unprecedented level of collaboration
and investment from federal and state
governments, commercial entities, the
3. Vehicle-to-grid (V2G) charging can benefit both electric vehicle (EV) owners and the power financial community, and all of us as cus-
grid. V2G technology works by using EV batteries to charge when demand is low and to supply tomers,” concluded Klingel. ■
energy to the grid when demand is high. To do so, the EV needs to have smart charge technol- —Aaron Larson is POWER’s
ogy and the grid needs to have dynamic load management capability. Source: Envato Elements
executive editor.

28 www.powermag.com |
POWER March 2023
MARNIE SURFACEBLOW
When Theory Becomes
Practice, Rely on Practical
Experience as a Foundation
As new energy technologies are employed to solve today’s renewable energy
challenges, think flexibly while relying upon established safety measures.

Una Nowling, PE


Is this your first time in the Philip-
pines, ma’am?” asked Maya Shar-
ma, lead field engineer for Surface-
blow & Associates International as she
frowned at the maps app on her phone.
Her phone gave her the equivalent of a
Gallic shrug by replying “No Signal.”
“Nope,” replied Marnie Surfaceblow,
the firm’s vice president. “Had a mix-up
one time with an intern who was handling
travel, and before I knew it, a trip to the
city of brotherly love—meaning, Philadel-
phia,” added Marnie as Maya gave her a 1. Marnie and Maya are met by Angelo and Frank as they arrive on-site at the torrefaction facil-
quizzical look, “became a trip to Manila.” ity. Source: POWER
“That is … a most unfortunate mis- with almost no practical experience. Lo- and preparation systems, although pri-
take,” Maya replied, knowing full well cal contractors are building the system, marily from a coal background.
that unusual adventures are common but they have never built a torrefaction Marnie and Maya were welcomed
occurrences for her boss. “Do you know facility. They planned on utilizing coconut warmly into a conjoined set of mobile
where this facility is, ma’am? My mobile waste, but there were supply difficulties. homes repurposed as a long and narrow
does not have any signal.” Thus, they are trying to change the plant engineering office, and met the rest of
Smiling somewhat smugly, Marnie design to use sugar cane waste—ba- the section leaders of the torrefaction
reached into the laptop bag at her feet gasse. Based on initial operations, they facility. After introductions were made,
and pulled out a stack of printed pages. have … concerns.” and Marnie carefully mixed together cof-
“Always carry a hard-copy map as a Marnie snorted a laugh. “Your pen- fee with enough milk and sugar to make
backup when you are going to a new chant for understatement strikes again. pancakes from it, Maya opened the
… oh.” Marnie stared at the pages, and Did you see the photos of the fire last meeting by inviting the group to “tell us
then pinched the bridge of her nose and week? Thank goodness no one was hurt, your story.”
closed her eyes. but they’ve lost a conveyor, a storage “It’s simple,” Frank began. “We’re a
“Ma’am?” asked Maya, with a grow- bin, and an old truck that looked like an test site funded by research develop-
ing sense of unease. antique—the sort of thing Grandpa Mar- ment from four universities to produce
“Don’t worry Maya, I have an excel- maduke would’ve loved to tinker with. 10,000 tonnes per year of torrefied bio-
lent map … to Philadelphia.” Now, they’re even further behind in time mass pellets for pulverized coal plants—
and money, and what little product they’ve mostly located in Luzon. We validated
A Biomass-Filled Landscape made is so far off the mark that …” the process at the bench scale in our
After a few wrong turns and some direc- “That it might as well be your care- laboratory, and if this scale-up works and
tions from a kindly roadside fruit vendor, fully printed map to Philadelphia,” Maya the price is right, we will then increase to
the jungle-choked road deposited them chimed in quickly, with a rare smirk. 100,000 tonnes within a year. But scal-
at the test site. Sitting in the parking lot, ing up and working outside of the labora-
they had a quick snack and a brief dis- Site Greetings and Discussions tory has not been good. Our bench-scale
cussion. Between bites of fresh melon, The pair were met by Angelo Garcia and plant was designed for coconut shells
Marnie asked her assistant, “I know we Frank Ramos, the lead engineer and and husks left over from food proces-
just got back from the Case of the Errant plant manager, respectively (Figure 1). sors, and that was our plan for this facil-
Hydrogen and hit the road again, so are Frank had the look of a CEO who was ity. But our supplier backed out, so we
you ready for this project?” visiting the plant for a day trip, but Mar- found a local bagasse source that can
“My understanding is this is a test fa- nie knew he had extensive operations supply us with feedstock to prove this pi-
cility for torrefaction of biomass that was experience. Angelo was much younger, lot plant works and our target customer
developed by a research organization but experienced as well in fuel handling can perform a test burn.”

|
March 2023 POWER
www.powermag.com 29
MARNIE SURFACEBLOW
“How large was your bench-scale
plant you tested this process with?”
asked Marnie.
“We ran up to 10 kilograms per hour,
and … excuse me Miss Surfaceblow, are
you OK?”
“Do not fear,” answered Maya, “that is
merely the look of utter horror that is a com-
mon expression of my boss. It shall pass.”
Taking a deep breath, Marnie spoke.
“Even with double shifts and assuming
no unplanned outages, I’m thinking your
plant is designed for two to five tonnes
per hour, and on coconut, which is abso-
lutely not the same as bagasse. So, this is
a 200- to 500-to-one scale-up with a differ- 2. The feedstock for the test facility contained sugarcane leaves, stems, and miscellaneous
ent feedstock,” she suggested. “And you roots, including dirt clods. Source: POWER
thought this was a good idea … why?”
“The process is very simple. We pre- ing biomass. “Rarely do we find a good “And sir, what is the moisture content
pare the biomass, apply heat in a low- balance, so most of our lightly cooked of the bagasse when you reclaim it?”
oxygen environment for a specific time, product is blended with the over-cooked Maya asked, taking notes on her tablet.
and then we make pellets,” replied a product,” explained Marisa. Angelo shrugged again, which was be-
slightly cross Angelo. “Our graduate stu- “We sometimes send the less-cooked coming a regular habit. “It is of course
dents did this in our laboratory for two biomass through a second time, but variable. If it is aged and dry, maybe 10%,
years with great success. Because our still our yield is very low,” added Carlos. if it is new and wet, maybe 60%. It rains
system is so simple, it was designed to ”Ma’am? Are you unwell?” here every two days on average, so there
be very flexible, especially because it is “Oh, nothing much, just my brain is that,” Angelo sputtered as he saw the
a pilot plant.” hurts. I think I need some fresh air, so look on Marnie’s face. Maya cleared her
Leaning in, Maya noted, “But, sir, ac- let’s go for a walk,” Marnie said. throat and headed off a pending outburst
cording to your messages, your production by asking, “And what about the quality of
plant may not be as flexible as you wish.” A Stroll Through Paradise the fuel? Is it from the same plantation
“It’s true, we have so many problems The test facility was running, but not very or producer?”
we can’t make progress,” replied Angelo. well. A conveyor laden with sugarcane “Yes, it is from one source, and we
“Carlos, Marisa, could you please de- leaves, stems, and miscellaneous roots receive up to 15 trucks each day.” Angelo
scribe what’s happening?” complete with dirt clods (Figure 2) was pointed toward five awkwardly arranged
Two younger engineers at the end of steadily dumping its cargo into a bin with rows of bagasse.
the table hooked up a laptop to a projec- a large set of vibrating sifting screens at “That pile is on fire,” Marnie comment-
tor and then stepped through slides on the bottom. Angelo pointed to the waste ed resignedly. “I am seeing that, correct?”
a large monitor. Marisa, the elder of the bin, and said, “We try to screen as much Angelo shrugged again. “It is just
two, spoke as Carlos ran the slides. “Prod- debris as possible, but still dirt goes into spontaneous combustion, from mixing
uct quality depends on some factors we the torrefier. An electromagnet sorts fer- wet and dry bagasse. It’s not a problem.”
control. As you know, we heat biomass in rous metals, but we rarely find any.” “Except, of course, for the fire that
a low-oxygen process for a certain time “What sort of preparation is conduct- melted your conveyor,” Marnie retorted.
and certain temperature. Not only does ed on the bagasse?” asked Maya, as “Oh, that was in the finished product
this remove moisture and some volatiles, Marnie looked in dismay at the cloud of area,” replied Angelo. “Come see the
but it transforms the lignin fibers in the dust rising from the sifter. rest of the system.”
biomass, making it crush just like coal.” “It’s delivered by truck, then stocked “Must we?” asked Marnie before she
“Not … so much. It does make it more into 100 tonne piles,” Angelo replied. received a gentle but firm elbow from
friable—crushable—but not like coal. Es- “We don’t cover it, since it already seems her assistant.
pecially after you add the binders during very wet. We chop and grate it, but our
the pelletizing process, because they capacity is reduced because the system The Finishing Area
can be softer and sticky under coal plant was designed for coconut. Everything is The torrefier was a standard rotary type,
milling conditions.” Marnie shook her sized to 25 millimeters before going on looking like a large tumble-dryer. It turned
head. “So, tell us why we’re here.” the feed belt.” slowly, and radiated heat and occasional
“Well ma’am, choosing the correct “That may be so,” Marnie noted, wisps of steam and smoke. A screw
combination of conditions is very dif- as she reached out a gloved hand and feeder slowly fed biomass on one side,
ficult, and we are constantly searching snatched a long sugarcane leaf hang- while natural gas burners added hot ex-
for the right combination, but our yield ing from the conveyor belt. “But, this is haust gas to start the drying process. On
is less than 20% of what enters. Often, about 25 millimeters by 400 millimeters. the other end, smoking black biomass
we make product like this.” A slide was You are only sizing in one axis, so you char was dumped out, and quenched by
displayed showing light tan-colored bio- have a feedstock that is very inconsis- a water mist.
mass. “Or like this.” Another slide was tent.” Angelo shrugged. “It’s the best we “The drum is specially modified with
displayed showing jet-black and smok- can do,” he said. an internal spiral liner to turn the biomass

30 www.powermag.com |
POWER March 2023
MARNIE SURFACEBLOW
constantly while moving it toward the later, sipping her coffee and looking over and poorer product quality.”
outlet. We control the feed rate, heat in- laboratory test reports of the feedstock Continuing the foray, Marnie said, “Ba-
put, rotation speed, and oxygen level in and product, Marnie was not surprised in gasse and coconut both have low inorgan-
the system. But the ideal control points the least to hear loud cursing in Marathi, ic content, so adding even small amounts
always change, and we cannot get the followed by the torrefaction system’s of dirt and rock will significantly change
needed product quality,” Angelo explained. emergency manual trip claxon. “Good your product quality—and you’d better
“How do you dispose of volatiles and job, my perceptive protégé,” she said believe, it’s almost always for the worse.
steam released from the process?” softly to herself. Also, for goodness’ sake, find a way to
frowned Maya, looking around, then size your product better. You should not
noticing a vertical pipe with a flame at Setting the Stage for Success be sending leaves and stems nearly half-
the top near the end of the drum. “Oh, Standing at the front of the meeting a-meter long into your pelletizer. Which,
you flare it into the atmosphere, with room next to a still-fuming Maya, Marnie by the way, was designed for torrefied
no scrubbing and no re-use of the heat. opened the debriefing. “There’s … just a coconut, which can be less abrasive than
How unfortunate.” lot to unpack here. Let me explain why bagasse, depending upon the inorganic
“Hey,” exclaimed Marnie, “that’s my your simple system is, well, simply dread- minerals within and without it.”
phrase!” ful. Your laboratory reports were the only “But, most of all,” Maya returned, in
“Yes ma’am, and I am using it to good good part. They were comprehensive and the intellectual tennis match of the pre-
effect,” Maya replied deadpan. complete. After that, however, your ef- sentation, “let me ask you this: Do you
forts to scale up your bench model by hate your employees? Of course not!”
A Hot Mess more than 200 to 1 are just … bad.” she emphasized, cutting off Frank in
“Your fuel product storage is just … well “Allow me to assist,” said Maya. “Ba- mid-protest. “Then, why do you not have
… a steaming pile,” said Marnie, watch- gasse is not coconut. People think coal carbon monoxide sensors at the outlet of
ing the water-quenched biomass char quality impacts are difficult to manage a process predestined to predominantly
falling off the outlet conveyor into a heap. at traditional power stations, but they produce poisonous pollutants?”
“What are those workers doing near the are not close in comparison to bio- “She’s really mirrored my tendency for
end of the torrefier? That’s a pretty haz- mass. And then you add torrefaction? creative alliteration,” thought Marnie, as
ardous area, I mean, they’re exposed Torrefaction is not a simple process. It Maya continued.
to hot biomass, potential burns, an ex- is, in fact, very complex, and biomass “I measured the CO at the torrefier
plosion risk, carbon monoxide—please quality differs from source to source, outlet area, and found levels from 200 to
show me your CO monitors, Angelo.” dependent upon the soil, how it is har- more than 600 ppm!” Maya exclaimed.
Angelo shrugged yet again. “We don’t vested, the age it’s harvested at, how “That is enough to kill in three hours,
have them. This is outdoors, and the it’s stored, everything up to and includ- maybe less. Even with shorter exposure
wind surely takes it away before …” ing the phase of the moon. But one of time, workers will have long-term health
“Imbecile!” exploded Maya, shocking the simplest factors is what is causing effects being in that environment for just
even Marnie into silence. “It does not the greatest problem—feedstock mois- one hour a day!”
matter where I travel, what the situation, ture. In the laboratory you performed The silence in the room spoke vol-
people are not caring about the safety of some moisture sensitivity analyses umes, and while Marnie sat in admira-
their colleagues! Ammonia, hydrogen, on the coconut shells and husks, but tion, Maya softened her speech. “There
lost ionizing radiation sources—I have bagasse has much greater moisture is a saying from my Auntie Komal that
had enough!” Maya turned and stomped variability, both inherently and from en- applies. ‘Making mistakes is common,
off, yelling back at a still shocked Marnie vironmental factors, such as storing it accepting mistakes is sacrament, and
and Angelo, “Ma’am! Sir! Forgiveness uncovered in the rain.” learning from mistakes is progress.’
please, I am retrieving our portable gas As Maya shook her head, Marnie took Meaning, take the same academic prob-
tester from our vehicle!” over. “Even if the dry fuel quality is dif- lem-solving you used with your tests
Angelo started to say something, but ferent, you could greatly improve your on the bench and apply them to fix this
Marnie put a hand on his shoulder in al- product quality by installing a pre-dryer plant, make it safe, make it efficient, and
most a motherly gesture. “She knows upstream of the torrefier. One design help your coal power stations reduce
what she’s doing. Trust me on this. Get uses a low-temperature drum with humid- their pollution as well.”
those workers out of that area, NOW. Then, ity sensors to pre-dry the product without “In other words, folks, when the
let’s examine your biomass feedstock and losing your volatile matter or carbonizing real world meets academia, one of two
torrefied product analysis trends.” the feedstock. Sure, it costs more, but it things can happen: Utter disaster or bril-
“Um … yes, of course, ma’am.” An- could potentially double your yield,” she liant success,” Marnie supposed. “Let’s
gelo thought for a second. “Do you wish said. “And pretty please, with sugar on try for option two, shall we?”
to see the pelletizing plant? We have it, cover your biomass piles. Here, again, As general discussion and debate
many pellet consistency problems with your investment will pay off.” broke out, with Maya answering several
the binders, and the pellet dies last only Maya quickly added, “And you must pointed questions. Marnie, while pre-
half of their expected life.” do what is needed to better remove the pared to provide backup, simply drank
“The binders don’t bind, the dies are soil, rock, and other materials from the her coffee and thought, “We did good
dying, and so is your plant. When Cyclone bagasse before it enters the system. Be- work today, so all things considered, I’m
Maya is done with her testing, let’s have cause you have not operated long, you glad we’re not in Philadelphia.” ■
a meeting and go over the high points.” have not seen that these contaminants —Una Nowling, PE is an adjunct professor
Marnie headed back to the engineering can build up inside your torrefier, leading of mechanical engineering at the
trailers with Angelo in tow. Ten minutes to increasing unplanned maintenance University of Missouri-Kansas City.

|
March 2023 POWER
www.powermag.com 31
FINANCE
Understanding How
Securitization Can Help with
Power Plant Retirements
Power companies across the nation are being pressured to retire fossil-fueled
power plants and transition to cleaner energy resources. But many existing fossil
plants have not been completely paid off or depreciated, which means potentially
big losses to shut them down. A tool called securitization may be able to help
some companies manage the costs.
Aaron Larson curitization is really just the process of

P
ower companies have always had refinancing an asset, and in effect, re-
to plan for the future. They have structuring that asset into debt,” Brad
always conducted research to Viator, vice president of External Affairs
better understanding how load on their with the Edison Electric Institute (EEI),
power system might change in the short said during a presentation hosted by the
and long term, and then, developed a Missouri Energy Initiative.
strategy for meeting that demand. This Viator explained how securitization
is necessary because power plants can works with an example. He suggested
take many years to engineer, procure, the year was 1990. The local electric 1. Michigan-based Consumers Energy used
construct, and commission. There are of- company serving parts of Kansas City is securitization to pay off the remaining balance
it had on its books for D.E. Karn Units 1 and
ten land purchases and infrastructure up- working with the Missouri Public Service
2. The plant will be retired this year, saving
grades required, in addition to permitting Commission (MPSC) and leaders are customers a reported $126 million per year.
and financing hoops to jump through. It’s evaluating if more power generating ca- Courtesy: America’s Power
not a quick or easy process. pacity is needed to supply the expected
Furthermore, money spent on power future demand from the growing popula- asset remaining to be paid back by cus-
plants is a long-term investment. Often, tion in and around the metropolitan area. tomers. That’s because when you look
power companies expect the useful life The company proposes building a 1,000- at an amortization schedule, most of the
of plants to be 30 to 50 years or more. MW coal-fired station and financing it for money paid in the first 30 years is interest.
In fact, some nuclear power plants have 40 years. The MPSC agrees and the proj- Principal doesn’t exceed interest until year
now had their licenses extended out to ect moves forward. The plant will be paid 32 of a 40-year loan. Therefore, to close
80 years. It’s unlikely anyone involved for and fully depreciated in 2030. this particular plant, the electric company
in planning those facilities thought that In Viator’s example, the electric com- would need to move the plant from an as-
would happen when the plants were first pany pays for the resource to be built im- set to a liability on its balance sheet.
conceived in the 1960s and 1970s. mediately, in effect, financing that cost to
Prior to pulling the trigger on a proj- customers. “They’re pushing these costs What Is Securitization
ect, power companies spend a lot of on to customers on a monthly basis, even One possible way to restructure the fi-
time evaluating alternatives. These good- though the cost of the asset was paid nancing is using the securitization tool, if
faith efforts lead to what are always up front by the electric company,” he ex- the state and PSC allow it. Continuing his
hoped will be smart decisions. Yet, the plained. The electric company is working example, Viator explained how securitiza-
landscape is constantly evolving. New much like a bank in this case, with the util- tion could be used. “We would restructure
technology and changes in cost curves ity often authorized to receive a return on all of the remaining cash flows and create
for alternative resources can make what equity of from 7% to 9%. a debt instrument or a security, and then
seemed like a great investment in one In the first couple of decades after we would sell those securities to inves-
decade, much less appealing in the next. construction, everything goes smoothly. tors. So, in fact, that asset gets eliminated
Unfortunately, managers can’t go back The plant operates well and provides from the electric company’s books that
in time and make different choices. The cost-effective power to the region. How- owned it, and it becomes owned by inves-
best they can do is attempt to find the ever, customer expectations change over tors, who purchased the bonds. And those
least-cost way to alter course. time. People become more climate con- bonds are secured by future payments for
scious and decide they don’t want coal the remaining 10 years,” he said.
Why Plant Retirement Can Be plants to be part of the energy future The bonds are often backed by what
Financially Challenging because of the carbon impact they have. is called the “securitization property,”
One of the tools that electric companies The problem is, by 2020, with 10 years which most importantly includes the
in some states have available to them remaining in the financing of that asset, rights granted by the commission to col-
is called securitization (Figure 1). “Se- there may still be 60% of the cost of the lect the bond principal and interest pay-

32 www.powermag.com |
POWER March 2023
FINANCE
ments from customers by charging them there are four pieces in the plant retire- Reinvest. Lehr, who has previously
higher electric rates. The charges that ap- ment process. The steps include com- served as a commissioner and chairman
pear on customer bills lead to a stable, pleting detailed financial analysis, filing a on the Colorado Public Utilities Commis-
predictable cash flow for bond investors, depreciation and rate case, refinancing, sion, as well as on the Denver Board of
making the bonds very low risk. As a re- and reinvesting. Water Commissioners, suggested utili-
sult, the bonds can be sold with low in- Financial Analysis. Lehr said utilities ties should be allowed to refill their rate
terest rates—generally, much lower than spend a lot of time “planning for new base by owning some of the replace-
the return on equity the power company resources and reducing risk,” but what ment power that comes online to replace
was getting—and thus the securitization can be missing in the process is solid fi- the early-retired plant. “That’s very good
method becomes a cheap way to finance nancial planning. “We would do a better for shareholders,” he said. “It’s very easy
the retirement of coal plants and saves job—we could create more benefits to to make a utility whole, and more than
customers money. be shared by everybody—if we brought whole, by allowing them to own some,
A number of states have allowed se- that financial transition and those issues but not all, of the replacement power.”
curitization to be used for disposing of forward, and did them upfront and in a Lehr suggested having fair competition
stranded assets. Among them are Cali- thoughtful and planned way,” he said. for ownership of the replacement power
fornia, Connecticut, Illinois, Maryland, The financial analysis Lehr proposed is was important to ensure the lowest cost
Massachusetts, New Hampshire, New based on corporate financial models for consumers.
Jersey, New York, Ohio, Pennsylvania, used on Wall Street incorporating pub-
Rhode Island, and Texas. Colorado, Ha- licly available financial data, much of it A Win-Win-Win Outcome
waii, Michigan, Montana, and New Mex- filed with the Securities and Exchange Yet, when securitization is the right an-
ico have all allowed the tool to be used Commission and/or the Federal Energy swer, it can be beneficial in several ways.
“We think that there’s a triple-win out-
“Securitization can be a useful tool, but it’s come here,” said Lehr.
not a panacea.” “Consumers pay less because the
retirement reduces fuel and O&M [oper-
—Brad Viator, vice president of External Affairs with ations and maintenance] costs very sub-
stantially—there are typically hundreds of
the Edison Electric Institute (EEI) millions of dollars here. And the refinance
specifically for coal plant retirements Regulatory Commission. savings—going from the utility’s autho-
and/or clean energy investments. Sever- “It’s a good way to go,” said Lehr. rized rate of return down to the AAA bond
al southeastern states, including Arkan- “Once you set up that financial model, rating—is another big savings. Again, it
sas, Florida, Louisiana, Mississippi, and it can serve you through this whole can amount to hundreds of millions of dol-
North Carolina, have used securitization process of utility financial transition, by lars, so this is a big deal,” said Lehr.
to deal with storm damage costs. Finally, showing you what the financial options Environmentally speaking, emissions
Idaho, Vermont, West Virginia, and Wis- are and what impact they have, not only are reduced when fossil-fueled plants
consin have used it for some other pur- on shareholders but also on consumers.” are replaced with renewable energy.
poses. Furthermore, there is some type Depreciation and Rate Case. There There are also opportunities for business
of regulatory or legislative action being are a series of dockets, many involving development that come with the addi-
pursued in several other states to allow regulatory agencies, through which re- tion of more renewable power.
securitization to be used by power com- tirement decisions must pass in order On the shareholder side, investors can
panies in some way. to be approved. Consumer advocacy get higher returns. “You respond to your
“Securitization can be a useful tool, groups sometimes argue against what investors who want to see utilities mak-
but it’s not a panacea,” Viator said. “Se- power companies have asked for, and ing this happen,” Lehr said, noting that
curitization as a tool, frankly, is not that it’s not a given that money requested for Morgan Stanley and BlackRock are two
different from bankruptcy—in bankrupt- recovery will be allowed. big investors that have put a lot of pres-
ing a particular asset.” The decision to “It’s depreciation and rate case that sure on companies to transition toward
use securitization is not something pow- pick up the questions of disallowance or clean energy resources. Meanwhile, it
er companies can take lightly. “If you partial disallowance or how much time it offers a positive response to custom-
have a bunch of assets that you want to takes to get the money back—the depre- ers who are demanding cleaner power.
securitize and close, that’s going to have ciation schedule—that’s rate case work,” “There’s a customer preference and cus-
a very material impact on your ability to Lehr explained. tomer defection issue. That’s a risk for
raise capital as an electric company go- Refinance. Once decisions are made utilities. You handle that,” said Lehr.
ing forward, and it could put companies on what needs to be paid back, the ques- Much like Viator had cautioned, how-
in a pretty difficult position,” said Viator. tion of how to handle it can be answered. ever, Lehr suggested securitization is
“Is there a way to refinance it?” asked not a one-size-fits-all solution. “Realize
Four Steps for Success Lehr. “That’s where securitized bonds that your circumstances, wherever you
In another session as part of the event come in.” happen to be, are going to be different
hosted by the Missouri Energy Initiative, At this point in the process, the eq- and special and unique, and you have to
Ron Lehr, a clean energy consultant and uity on an early-retired plant (the regula- adapt this stuff to those circumstances,”
attorney from Colorado, who was rep- tory asset) is typically removed from the he said. “It’s never a case of never or al-
resenting Energy Innovation Policy and books. That’s a hit to shareholders be- ways, it’s more nuanced than that.” ■
Technology, a non-partisan energy and cause securitized bonds reduce invest- —Aaron Larson is POWER’s
climate policy think tank, suggested ment costs in rates. executive editor.

|
March 2023 POWER
www.powermag.com 33
GAS TURBINE
An Unplanned Outage,
an Unconventional Plan,
and a Global Collaboration
When problems strike and normal supply channels are constrained, it can be
advantageous to consider alternatives. The Rocksavage plant in the UK found needed
parts at a station in Argentina and was able to get its unit back online months earlier
than would otherwise have been possible.
Melissa Barber
with no problems. Searching the Globe for Solutions

M
ost power plant operators “At first, from an operational per- Swire and his team brought in Taj, their
would prefer never to face an spective, it looked for all the world like trusted consultant, to help them figure
unscheduled outage due to a a single-indication issue,” Swire said. out this knotty problem. Taj, who had
gas turbine failure. But at InterGen’s Two days later, once the turbine had previously worked for Alstom Power
Rocksavage Power Station, a forced cooled, Swire’s team used a borescope for nearly 24 years, travels the world
outage in 2022 became an unexpected to conduct an internal inspection. They advising power plant owners and man-
opportunity for collaboration. discovered significant damage in the agers on how to optimize their power
“With the energy industry under the environmental (EV) combustion sec- generation assets.
microscope, and with potential supply tion that would be difficult to fix without “There are solutions,” Taj told them.
issues and with the winter months ap- opening the machine. “There’s no one answer to the question.
proaching, at first we didn’t really have A more detailed borescope inspection We have to ask the right questions—
a clear way forward,” said Rocksavage conducted by the original equipment tough questions, perhaps—then come
Engineering Manager Paul Swire. manufacturer (OEM) revealed worse up with the answers that are probably
But the Rocksavage team rallied. news: the entire bottom half of the EV not industry standard answers, but prac-
They called on Siraj Taj, principal of combustion section would have to be re- tical answers.”
American company ST Power Services placed. There was also significant dam- InterGen is an independent power
(STP), and other outside expertise and age across the turbine itself. company whose plants have high levels
resources. Together, they decided to The OEM confirmed that it could of autonomy in operational decisions.
try, in Taj’s words, “a truly innovative manufacture a replacement combus- Therefore, Swire explained, “there’s a
and pragmatic solution that had never tor. However, the company was already lot of responsibility placed on individual
been tried before.” As a result, they re- backlogged from COVID and with exist- sites and individual managers to make
turned the plant to full operation in half ing commitments to long-term service
the expected time. Here’s how they agreement customers. Therefore, the
did it. estimated time to provide the new parts
was 46 to 48 weeks. In addition to the
A Series of Unfortunate Events new part lead time, there were challeng-
Rocksavage Power Station is a com- es in scheduling resources for the work
bined cycle natural gas–fired power required for strip-down, replacement, re-
plant in England, just southeast of Liver- assembly, and commissioning.
pool. It has a generating capacity of 810 There was also the risk of finding fur-
MW, enough to power about 800,000 ther significant structural defects once
homes. the GT had been stripped and inspected.
At 10:36 p.m. on May 21, 2022, Gas If additional components were damaged,
Turbine B (GTB) was nearing the end such as the turbine housing, Swire feared
of its run cycle. A high-temperature they’d face another long lead time. It was
alarm went off. Four minutes later, imperative to assess the full extent of
high-temperature alarms sounded fur- the damage.
ther down the turbine. Twelve minutes This, unsurprisingly, “was a very dif-
from the initial alarm, the turbine was ficult conversation to have with insur-
shut down. ers,” Swire said. Rocksavage was keen
Plant operators weren’t too con- to avoid having its GT out of service for
cerned, as GTB had been thoroughly in- a year or more. The plant had to be run-
spected four weeks earlier working with ning at full capacity by the winter, when 1. Damage to the high-pressure blades
STP. It had gotten a clean bill of health demand would spike. Was there an alter- caused by the molten environmental (EV)
combustor material. Courtesy: InterGen
and had since gone through nine starts native approach?

34 www.powermag.com |
POWER March 2023
GAS TURBINE
tain a different part from the OEM’s main
GT store: the plant’s old EV rear wall,
which had been stored there. Swire flew
to Switzerland to inspect it, and the part
was brought to the UK after assessment
and refurbishment. Other parts were
made by third-party manufacturers, ma-
chine shops, and the OEM.
On July 21, a GT24 crew from the
U.S., led by Swiss engineers, arrived at
Rocksavage to strip and inspect the gas
turbine (Figure 2). As they completed
their work in late August, Swire hoped
to keep them in England to assist with
rebuilding the GT. “The worst thing you
want to do,” he said, “is have everyone
leave site with one of your gas turbines
in bits and no real sight on when you’re
going to rebuild it.”
Of course, that’s exactly what hap-
pened. The team had already commit-
ted to returning to the U.S. to work on a
planned outage, so they had left by the
2. Rotor removal underway as part of the strip and inspect phase. Courtesy: InterGen time the parts arrived from Argentina on
Oct. 4. A UK-based crew was found, and
things happen.” taking a risk. As far as Taj knew, no other the work of rebuilding began (Figure 2).
The most important thing for the power plant had ever attempted to repair “Every day was a raft of on-the-hoof
Rocksavage team to understand, Taj a gas turbine using original secondhand decisions and ad hoc engineering,” Swire
said, was that “you’re not at the mercy parts. said. As winter neared, the team pulled
of somebody else. You can do things. You It was a pragmatic decision. With their together to get the job done efficiently.
just have to reach out to the right people combined expertise, they knew they The reassembly was completed Nov. 25.
and evaluate your options.” could adjust, modify, and repair the parts With excitement and trepidation, they
That’s exactly what they did. Swire while ensuring the best standards, clear- powered up the turbine. GTB was back
first contacted Dutch company Thom- ances, and tolerances. “We are confi- in action—six months ahead of even the
assen Energy about the possibility of dent that some things will be right, but most optimistic original schedule.
reverse engineering parts for an EV com- we will deal with the problems as they Swire’s advice to any plant manager
bustor. But when he shared pictures of come,” Taj told the Rocksavage team. in a similar situation: Don’t go it alone.
the damage (Figure 1), they shook their Parts planning was only one piece of “Reach out to other independent power
heads. Certain parts could be manufac- the puzzle; resource planning and sched- service providers, and owners and op-
tured, but they couldn’t make an entirely uling was the other. The people they erators of similar plants and equipment,”
new one. Swire and Taj then wondered, needed to assist with the work were he said. “Engineers always want to as-
could they obtain an original combustor? busy with scheduled outages (many of sist and love a challenge!” That’s exactly
The particular Alstom GT26 model them deferred because of COVID). The what Taj does in his consulting work.
used by Rocksavage was one of only OEM also played a crucial role, as it pos- “We thrive on being the pragmatic solu-
a handful still in use worldwide. Swire sessed the knowledge and history of the tion provider,” he said.
and Taj began following a global trail of Dock Sud components and the resources The benefits of their approach includ-
breadcrumbs as they searched for parts. that would be required. The Rocksavage ed improved quality, lower costs, and
Swire reached out to Thomassen, which team faced a long list of what-ifs—and a significant time savings. They demon-
suggested he speak with SS&A Power ticking clock. strated that Rocksavage was a reliable
Group in Switzerland, where an engi- and profitable asset, thus increasing the
neer connected him with the Dock Sud The Team Leaps into Action chance of future investment in the plant,
power plant in Buenos Aires, Argentina. The first order of business was inspect- including hydrogen fuel upgrades. Rock-
Swire sent the borescope images to ing the spare parts at Dock Sud. Inde- savage returned to full generation capac-
Dock Sud. Dock Sud sent back photos pendent engineers from SS&A and the ity just in time to deliver vital energy to
of the exact components Rocksavage OEM flew to Buenos Aires along with the people of the UK—helping to keep
needed (Figure 1). Chris Bailey, maintenance and reliability the lights on during the depths of winter.
“That was a major breakthrough,” manager for Rocksavage. The team ex- To see a slideshow containing many
Swire said, but it was only the beginning. amined the parts and on first inspection more images of the damage and replace-
The parts had been in storage for years, found no significant mechanical defects. ment parts, see the online version of this
and in use at Dock Sud before that. Were Most importantly, the components were article at powermag.com. ■
they in good condition? Would they fit? compatible with the Rocksavage GTs. —Melissa Barber
Would they function? The plan was a go. (emdashwork@gmail.com)
Taj and Swire were aware they were Meanwhile, Rocksavage sought to ob- is a freelance writer.

|
March 2023 POWER
www.powermag.com 35
GAS TURBINE
Protecting Gas Turbines from
High Temperatures, Humidity,
and Dust
Gas turbines require high-quality air to operate reliably. However, increasing
temperatures and reduced rainfall are increasing the frequency of dust storms in
many parts of the world. In these circumstances, air filtration technology plays a
critical role in ensuring satisfactory operation regardless of the ambient conditions.
Tim Nicholas
A report from the United Nations Gen- tion systems that are installed to protect

W
ith the increasing pressure of eral Assembly stated: “Sand and dust them, including:
more environmentally friendly storms have become increasingly prob-
energy and the drive to reduce lematic in the water-scarce Arab region. ■ Increased humidity promotes corro-
fuel burn, investments and continual im- They have expanded in geographical sion and can lead to sudden pressure
provements are being made to advance scope, likely because of climate change spikes if filtration systems protecting
the efficiency of gas turbines (GTs). The and changing environmental conditions the turbine suddenly become blocked.
challenge to reduce fuel burn in a gas tur- such as land use and land cover change.” ■ Filtration systems need to efficiently
bine is being achieved using exotic met- According to the Intergovernmental handle greater volumes of dust and
als and advanced manufacturing tech- Panel on Climate Change (IPCC), North sand, which pits and erodes precisely
niques to improve aerodynamics and the America will also experience significant engineered metal parts in the turbine,
throughput of air. These improvements rises in temperature: “Under all future without becoming blocked or requir-
are compromised by climate changes scenarios and global warming levels, ing unacceptably high levels of main-
that are impacting temperature, humid- temperatures and extreme high tem- tenance or replacement.
ity, and the types and amounts of par- peratures are expected to continue to ■ Higher ambient air temperature has an
ticulates in the air that is fed to the GT. increase (virtually certain) with larger inverse relationship with the efficiency
Olivia Lazard, scholar at Carnegie Eu- warming in northern subregions.” of the GT. As site temperatures rise the
rope, was recently interviewed by the Some areas will experience much importance of reducing differential pres-
Center for Strategic and International higher rainfall and rising temperatures will sure (DP) in the inlet house through me-
Studies (CSIS) and said, “Even if we mean significant increases in humidity, dia selection becomes more important
were to manage to stay at a 1.5-degree- as cited by a PNAS (Proceedings of the to offset the loss of efficiency.
Celsius increase, the Middle East and the National Academy of Sciences) research
North African regions would still experi- article: “One of the most robust findings Ultimately, high-efficiency GT com-
ence a substantial rise in temperatures, of most if not all climate model studies is pressors require high-quality air to
which would mean more drought—more that increase in SAT [surface air tempera- ensure robust operational behavior.
issues around access to water.” ture] leads to increase in humidity.” Therefore, stable and predictable air fil-
Increasing temperatures and reduced But what does all this mean for the tration technologies play a critical role in
rainfall are increasing the frequency of performance of high efficiency gas tur- ensuring fuel burn remains low regard-
dust storms in the Middle East (Figure bines? Whether regions are becoming less of changing ambient conditions. But
1). In 2016, the United Nations Environ- hotter and drier, or whether rainfall and how can we be sure the GT is protected?
ment Programme said Iraq could suffer humidity are increasing, these can have Filtration systems are evolving to meet
300 dust storms a year within a decade. numerous impacts on GTs and the filtra- extreme demands, but how can we be
sure these systems will operate as ex-
pected when installed?

Tackling Moisture and Humidity


Increases in levels of moisture or humid-
ity can pose several issues for filtration
systems. Tiny water droplets (moisture)
present in fog or mist (Figure 2) can be-
come easily trapped within certain types
of filtration media and mix with dust to
form mud. This can quickly block the
filters, creating large and sometimes
1. As local environments see less moisture, sand storms similar to this will become more sudden pressure losses in the system.
common. Courtesy: Parker Hannifin Moisture also causes quick changes in

36 www.powermag.com |
POWER March 2023
GAS TURBINE
Combating Increasing Dust Levels volumes of air a GT consumes, even
High volumes of dust or sand require the smallest change in performance can
multiple stages of filtration using in- make a huge difference to power output
creasingly fine media, which is pleated and efficiency.
into panels to maximize the filtration The volume of air required to test GT
area and optimize filtration efficiency. To filters makes it difficult to control the
protect the GT and ensure smooth ongo- many environmental variables reliably
ing operations, the filters need to handle in a laboratory setting. This can mean
the large volumes of dust so that they results are at risk of variation according
remain robust and there is no opportu- to the time of year tested and changing
nity for fast-flowing sand and moisture in weather conditions in the local environ-
2. Fog events are becoming less predict- the airflow to bypass the filter media and ment from which air is drawn (Figure 3).
able, requiring year-round moisture mitigation. damage GT internals. The length of test will further determine
Courtesy: Parker Hannifin Using polyurethane flow technol- how close it is to site conditions as filter
ogy in the filter construction will ensure performance changes over time.
the physical state of hygroscopic salt par- complete encapsulation of the media The true test of filter lifetime perfor-
ticles from solid to liquid form, making pleats and help protect against damage, mance goes way beyond just filtration
them more challenging for the filtration through which air can bypass the filter media efficiency. Accurate and reliable
system to handle. media. In high-moisture environments, test conditions need to be established
Coalescers are used to agglomerate it may also make sense to use edge and, if testing does not simulate real-
the water droplets to make them larger seal technology, which applies continu- world conditions, there are no guaran-
and heavier. This prevents moisture and ous hot-melt beads at the border of the tees the filters will perform in the same
liquid-phase corrosives from reaching pleats to act as a secondary reinforce- way on-site.
and then entering the tiny pores in the ment seal against the moisture. Real-world testing, using mobile test
GT filter media. A further problem can In dusty regions, self-cleaning pulse rigs, offers the most assured way to pre-
come where moisture is present from systems enable lower differential oper- dict and understand the performance of
mist or fog events and there is high ating pressure, which increases the ef- a filter. Investing in large test rigs that
volumes of dust or sand in the environ- ficiency of the gas turbine. However, the can fully simulate sandstorm conditions
ment. This can result in the need for pulse settings of these systems need to over prolonged periods also provides fil-
frequent replacement of coalescers. be optimized depending upon the location ter manufacturers with the insights they
In such circumstances, the coalescer and prevailing environmental conditions. It need to ensure filters are robust, resil-
needs to be designed to allow dry dust is also crucial that the system is properly ient, reliable, and predictable, as sand,
and sand to pass through while remov- maintained, including the supply of air to it. moisture, and dust levels become in-
ing the free moisture. Such technology creasingly less predictable.
is available and will significantly reduce Assuring Filter Performance:
maintenance overheads. Extreme Dust Testing and High-Quality Filtration Is Vital to
A further consideration is the type Testing Real-World Conditions Success
of media used within the filters. Cheap Although we recognize the challenges a The ever-changing climate is having an
blended media swells, reducing the ef- changing environment can present on GT impact on regional weather trends. The
fectiveness of the filter; whereas, the operations, how can we be sure that fil- calculus previously used about local site
selection of a system using advanced tration systems will operate as predicted conditions doesn’t necessarily apply to cur-
fully synthetic media will help ensure fil- once installed on-site? Given the huge rent site conditions. If we are to maintain
ter performance, and in turn, GT perfor- the performance of high-efficiency turbines
mance, is maintained. over time, we need to ensure filters, media,
Metal parts of filtration units also need and auxiliary systems used to protect them
to be protected from corrosive damage are optimized for current conditions.
due to high levels of humidity. Select- We can no longer rely on stagnant site
ing filters that use powder coatings on analysis at first fire. Said another way, filtra-
metal parts of the cartridge will increase tion system recommendations need to be
their reliability and resistance to envi- dynamic and relevant to actual conditions
ronmental factors. Waterproof coatings as opposed to past condition assump-
using cross-linked materials will further tions. This is where the expertise of ap-
increase the filter’s resilience to crack- plication engineering teams needs to be
ing, peeling, chipping, and abrasion. nimble. They must align and specify filter
In addition to upgrading the protection systems at sites based on actual weather
of the metal, climates that have increased conditions, local industry, and inlet house
moisture will need to consider upgrades orientation. It is vital that they stay in touch
in media selection. Sites that historically with changing weather patterns and chal-
used blended media will experience eco- lenge past assumption when making rec-
nomic benefits by upgrading to synthetic ommendations on filtration systems. ■
materials that perform well (providing —Tim Nicholas is PowerGen market
lower inlet DP and higher GT efficiency) in 3. In February 2021, an arctic blast hit seven manager for Parker Hannifin’s Gas
southern states. Courtesy: Parker Hannifin
higher moisture environments. Turbine Filtration Division.

|
March 2023 POWER
www.powermag.com 37
ADVERTISERS’ INDEX
Page Page
Amarok . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 INNIO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
www.amarok.com www.innio.com

EST Group, Curtiss-Wright . . . . . . . . . . . . . . . . . . . . . . . . Cover 2 MD&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21


www.cw-estgroup.com www.mdaturbines.com

Explosion Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 United Rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4


www.explosionpower.ch/en/ www.unitedrentals.com

FPT Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Zip Cable Tray Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13


www.fptindustrial.com www.ziptray.ca

Indeck Power Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3


www.indeck.com

PRODUCT SHOWCASE
PRECAST CONCRETE BUILDINGS

TO ADVERTISE IN
BUILT STRONG TO LAST
for POWER Applications easisetbuildings.com
INSTALL IN HOURS, LAST FOR DECADES Contact 540.439.8911
your Sales
Representative
for More Information:

TERRY DAVIS | Eastern U.S./Canada/Latin America


Standard or Custom Designs tdavis@accessintel.com | 404-434-5123
from 8’x12’ to 50’x250’
EasiSetBuildings.com • 540.439.8911
FAST CHRIS HARTNETT | Western U.S./Canada
ECONOMICAL chartnett@accessintel.com | 404-634-5123
VERSATILE
DURABLE
SECURE SCAN FOR A FREE QUOTE! PETRA TRAUTES | Europe
ptrautes@accessintel.com | +49 49 58604760

38 www.powermag.com POWER March 2023 |


Generating connections and commerce to power the industry forward

DISTRIBUTED

CONFERENCE

Save
the Date!
August 14-17, 2023
Westin Savannah Harbor Golf Resort & Spa
Savannah, GA

Experience POWER week is the intimate, solutions-driven


event where electricity generators meet to collaborate
with energy leaders across multiple verticals and
initiate the vision for the future of power generation.

HOST UTILITY SPONSOR

PRESENTED BY

www.experience-power.com
42599
COMMENTARY
America—and the World—
Needs More Nuclear Power
Jeremy Harrell

N
uclear energy is making a comeback—at home in Amer- late 2020s. The company recently inked a deal with U.S. indus-
ica and worldwide. The 118th Congress presents new trial giant Dow Chemical to decarbonize a facility in Louisiana
opportunities to make sure America leads the world on using its high-temperature gas reactor.
this crucial clean energy technology. The drumbeat for urgent
climate action on the global stage is as loud as ever, but we’re Policymakers must stay on
also in the midst of a global energy crisis. Both themes exem-
plify the importance and necessity of new nuclear power on offense in the 118th Congress.
the grid. Rounding the edges on these
Adding Advanced Nuclear Technology to the U.S. policies will enable Team USA
Power System
In the U.S., nuclear utilities are calling for 90 GW of new nucle- to out-compete Chinese and
ar power by 2050, nearly doubling our nuclear energy capacity
in the next 30 years—and American entrepreneurs are up to
Russian enterprises with
the challenge. The U.S. Nuclear Regulatory Commission (NRC) American innovation.
anticipates at least 13 applications for advanced reactors by
2027, which puts a dent in the big goal. Real Progress Being Made
The projects in the pipeline today employ thousands of The global marketplace is noticing, and demand has never been
Americans, and they are just the tip of the spear. If Republi- higher. Increased market opportunities will bring down costs
cans and Democrats in the new Congress are ready to double and drive commercial viability for more American companies.
down on the immense nuclear support in the big energy bills For example, not more than two weeks after the fuel load
enacted in the past four years—the Energy Act of 2020, the milestone for Southern Nuclear, Poland’s Prime Minister se-
bipartisan infrastructure bill, the Creating Helpful Incentives lected Westinghouse as the country’s prime partner for nu-
to Produce Semiconductors (CHIPS) and Science Act, and the clear development. The same design being built in Georgia is
recent tax package—a new generation of American advanced expected to provide from 6 GW to 9 GW of nuclear capacity to
reactors will make immense contributions to global security, Eastern Europe. Several other U.S. designs are nearing deploy-
U.S. economic growth, and climate action. ment domestically and internally.
The momentum so far has been awe-inspiring. Last year, NuScale Power, a major American SMR developer, an-
Southern Nuclear loaded fuel in the first Westinghouse AP1000 nounced a deal with Romania’s RoPower Nuclear S.A. to build
reactor at the Vogtle site in Waynesboro, Georgia. When all a six-module, 462-MW facility, as well as partnerships with
units are operational, the entire Vogtle Plant will be the largest Poland and Estonia. At the beginning of January, NuScale
producer of clean energy in the U.S., powering more than one submitted a standard design application (SDA) for its newest
million homes and businesses, and employing more than 800 SMR design.
highly paid professionals. Policymakers must stay on offense in the 118th Congress.
GE Hitachi (GEH), meanwhile, is preparing to build its BWRX- Rounding the edges on these policies will enable Team USA
300 small modular reactor (SMR) in Clinch River, Tennessee, to out-compete Chinese and Russian enterprises with Ameri-
with the Tennessee Valley Authority (TVA). GEH is hiring 400 can innovation. The World Nuclear Association states that, at
employees in Wilmington, North Carolina, to support that proj- the end of October, China was operating 53 commercial pow-
ect, a fuel facility in partnership with TerraPower, and the con- er reactors, making it third in the world after France, which
struction of its SMR at the Darlington site in Canada, which is has 56 reactors. The U.S., leading with 92 operating reactors,
on track to operate by 2028. but only has two units under construction, while China has 23
TerraPower, which is supported by the U.S. Department of reactors under construction. The U.S. must deploy and export
Energy’s flagship Advanced Reactor Demonstration Program innovative American nuclear technologies to retain its global
(ARDP), is evaluating up to five additional TerraPower reac- nuclear influence.
tors by 2035 with its utility partner PacifiCorp. These projects With geopolitical threats and the climate challenge both
would build off TerraPower’s project in Kemmerer, Wyoming, looming, we cannot cede ground to Russia and China. That’s
which is progressing toward late 2020s operation. TerraPower why the new Congress must urgently continue moving public
also closed an $830 million equity raise, one of the largest ad- policy that accelerates our domestic nuclear energy industry to
vanced fission fundraisers to date. build gigawatts of projects both here and abroad. ■
X-energy broke ground on its advanced reactor fuel facility —Jeremy Harrell is the Chief Strategy Officer at
in Oak Ridge, Tennessee, this past October. X-energy’s reactor ClearPath and serves as the chair of the board for
demonstration, also supported by the ARDP, is slated for the the U.S. Nuclear Industry Council.

40 www.powermag.com |
POWER March 2023
BRANDCONNECT

Reach your Target Audience with


Content that Resonates with
BrandConnect from POWER

POWER’s BrandConnect allows you to connect directly with the POWER


audience by placing your content alongside relevant POWER editorial
content, maximizing discoverability in context.

You benefit from aligning with the superior editorial expertise and
journalistic integrity of the POWER editorial team. Subscribers rely on the
editors of POWER to deliver industry news, technology fundamentals, and
expert analysis of industry operations and trends. When we connect your
brand to our sophisticated and engaged audience, while associating them
with the leading trends and respected editorial experts, we get results.

CONTACT YOUR SALES REPRESENTATIVE FOR ADDITIONAL INFORMATION


ABOUT HOW BRANDCONNECT CAN WORK FOR YOU:

TERRY DAVIS CHRIS HARTNETT PETRA TRAUTES


404-634-5123 713-343-1889 +49 69 58604760
tdavis@accessintel.com chartnett@accessintel.com ptrautes@accessintel.com
Power projects need a
powerful partner.
From material-handling equipment and aerial-work platforms to backup power
generation and complete tool solutions, we’ve got the equipment you need for your
power project. Planned and unplanned outages, transmission lines or substation
construction projects, we’re there for you.

Our team of experts provide a wide range of Safety, Productivity, Training and Power
& HVAC-engineered solutions, and we have an industry-leading safety rating with an
uncompromising approach to loss prevention and safe behavior. We also always offer
further training solutions through United Academy.

Call 800.UR.RENTS or visit UnitedRentals.com

You might also like