[QUOTE=Gangster Octopus]
I think we need a new acronym. IANUP - I am not Una Persson. I work in energy field as well, but not in the engineering side. But I have a more than a passing knowledge of this stuff, yet I will always defer to UP who is just a nails on expert at this.
[/QUOTE]
Gangster, thank you, but that’s also just not me. I make mistakes, all the time, and there are a lot of different ways to view things, especially legislation. I’m just getting frustrated right now because a lot of things in the energy and environment arena are mis-quoted or simply lied about in the press. Yes, it is true that Bush did not do as much as another Administration could have done, or would have done. Yes, it’s true that things moved slow on mercury. But they did move.
But my point is that many things which are reported and passed around about energy and the environment are urban myths. The dispute over NSR is one of them, mercury is another. And nothing in this thread, or outside of it, backs the claim that, in effect, Bush is openly raping the environment. Anyone can point to any industry or factory and write an article about how “it could be cleaner” and “why won’t someone in the government do something about it.” It’s easy for some teenage blogger to grab a few articles and claim a cover up, conspiracy, or “evil Cheney influence.” But is that how we want to examine the problem?
And one thing which folks don’t seem to think about is the “follow the money” principle. They see the “utility industry” as this monolithic bloc of evil cartels, not realizing that environmental regs also benfit those same cartels. B&W, ABB, Westinghouse, GE, Fluor, S&L, S&W, etc. all both build power plants (or very major components of such) and emissions equipment. And the big money is in emissions equipment - the markups on emissions design and components is huge, and at my company is responsible for most of our profits. A VP at B&W I had drinks with at a conference this last year told me that they are telling some folks that it will be 18-36 months before they can even start on their emissions control projects, because they’re so busy. And they’re making a large profit on them, too. There is a huge international component to this as well - the “utility industry” is highly multinational, with many US companies having half or more of their revenue from overseas work.
Let me lay out one example - why the coal companies aren’t thinking that the world is coming to an end with emissions regulations. Point 1 - even with a full complement of FGD/SCR/baghouse/ACI, a coal power plant is still cheaper to operate than a gas plant, and from the EIA price estimates I see, will be so for the foreseeable future. Utilities are going to close some small coal plants, true, and I’m working with some that are doing that. There could even be a hundred small plants that close. But most all of them are going to be saying open, and, after they increase their emissions removal to meet NSR, increasing their capacity factors. In other words - they may close a 40MW plant that only runs 1/4 of the year, and instead improve their 1600MW plant and run it 10% more of the year. Net result - more coal burned. The EIA shows projections of coal use only increasing (in mass terms) out to 2035.
Second, all those controls now allow plants “locked” into low-sulfur coal sources to burn medium and even high-sulfur sources. The result? Now all those politically important Appalachian and Illinois Basin/Ohio sources become profitable again, and the coal companies benefit further from this. And you better believe those Tennessee and Kentucky coal companies have a lot of political clout…
Third, the potential to shift to higher sulfur coal sources now means that the railroads east of the Mississippi have more potential to get coal freight from local mines, which is a high-profit item for them. There are some railroads who are very much looking forward to this, in fact. (some wonder about reduction in PRB traffic, but really, they expect to make it back and then some in the higher-margin short-haul traffic)
Fourth, there is a huge support industry for the emissions components. Chemical companies produce ammonia and urea for SCR. Mining companies produce limestone and lime for FGD systems. Concrete and cement plants get more good flyash for their kilns. Wallboard manufacturers get top-quality cheap gypsum from FGD waste. And all those new emissions controls need maintenance, in the form of parts, labor, tuning, inspections, etc. Whether it’s something as simple as check-valves on slurry lines, or exotic vanadium SCR catalyst, there is a huge industry out there that grows every year to support environmental equipment.
Finally, does anyone really think that their local utility will lose money if they are forced to install $5B in emissions components? Who pays, after all? I’ll tell you who - YOU do. It ends up on your electric bill in the form of higher rates. The utility isn’t going to be installing a half-billion dollar FGD by cutting executive bonuses - they’re going to pass it right on down to the ratepayer, where the buck stops.
There are huge portions of the “utility industry” that benefit very much so from these emissions controls. So if you follow the money as a mental exercise, it seems like there is incentive for the industry as a whole to not really be fighting emissions controls - assuming that unfair competition doesn’t enter into it. It’s true that some directive which said “coal production will be reduced by 20% or else” would cause all sorts of havoc among the coal companies, and you would see some serious political resistance - no denying that. But that’s not what people are fighting about.
As I’ve said before in another thread, IMO and IME the main concern voiced by the utility executives I speak to is unfair competition. As long as the rules don’t benefit one company over another, and are simple and don’t require full-time staffs of lawyers to figure them out (like CEM rules do right now…we have 6 full-time lawyers to try to interpet them, for crying out loud!) then I think they would be happy.