Arch Coal Foundation has awarded ten Wyoming classroom teachers the Arch Coal Teacher Achievement Award, Wyoming’s longest-running privately-sponsored teacher recognition programme.

“Each year, we are honored to recognize 10 outstanding Wyoming teachers with an Arch Coal Teacher Achievement Award,” said John Eaves, Arch’s Chairman and CEO.

“Once again, this year’s recipients are among the best of the best from around the state. They represent the many Wyoming educators who daily bring a sense of excitement to the classroom and a sense of purpose to the learning experience. We congratulate each of them for their ability to inspire and to encourage their students to reach ever-higher levels of achievement.”

Each recipient received the award at a special assembly held in front of students and faculty at his or her individual school. Teachers are nominated by the public with winners selected by a panel of past winners.

“Teachers play a vital role in shaping the future. Their impact reaches not only their students and their school, but also their community and our state,” said Wyoming Superintendent of Public Instruction Jillian Balow.

“I’m so proud to have a multitude of excellent educators in Wyoming and grateful that Arch Coal has supported teachers through this award for generations. Arch Coal is a wonderful partner in education and in recognizing, even in difficult times, the significant and valuable contribution made by these teachers.”

Edited by Jonathan Rowland.

According to a new report, Progressing development of the UK’s Strategic Carbon Dioxide Storage Resource, over a billion tonnes of carbon dioxide (CO₂) could be stored in identified North Sea locations by 2030.

The report was produced by a consortium led by Pale Blue Dot Energy, working with Axis Well Technology and Costain. It follows a 12-month project commissioned and delivered by the ETI, funded by DECC.

The report, which releases important new CO₂ storage site data into the public domain for the first time, was produced for the Energy Technologies Institute (ETI), and confirms that there are no technical hurdles to permanently storing large volumes of CO2 in offshore geological storage off the coast of the UK.

Andrew Purvis, the Global CCS Institute’s General Manager – Europe, Middle East and Africa, welcomed the release of the report, indicating that the findings would play a valuable role in helping to de-risk investment decisions for carbon capture and storage (CCS) projects.

The study examined five typical configurations of offshore UK geology: the Captain Sandstone (the subject of the SCCS joint industry project, CO2MultiStore), the Forties Sandstone in the Central North Sea, the Hamilton depleted gas field beneath the Irish Sea, the Viking gasfield and 44/26 sandstone dome sites beneath the Southern North Sea.

“This important report provides further assurance of the vast offshore CO₂ resource offered by the UK Continental Shelf and highly detailed site information for five future storage sites,” Purvis continued. “Perhaps most importantly, the report identifies that three of the five sites studied would not require any further appraisal drilling. This is significant because it means the UK CO₂ storage proposition could be available for injection from the early 2020s.”

Purvis indicated: “The extent of such valuable and comprehensive research and modelling we now have about these storage locations should help boost investor confidence and raise awareness of the valuable resource potential of the North Sea. In turn, this critically important data will help inform a clearer roadmap for CCS development not just in the UK, but with the potential to create a storage hub for CO₂ emissions from mainland Europe as well.”

The report’s authors estimate that the identified 1.5 Gt storage capacity that was subject to in-depth analysis in this report, would provide sufficient potential for at least 30 years’ worth of storage. Even then, these analysed sites represent only 2% of the UK’s national storage resource potential.

In a media release responding to the report, SCCS welcomed the findings and indicated how it could help provide a UK CCS industry.

The company explained that the project identified a very large UK CO2 storage resource potential, estimated at 78 gigatonnes, of which 15% could serve the UK for 100 years. Pale Blue Dot’s analysis shows an average levelised cost for transport and storage of around £15/t of CO₂ and a range of between £11/t and £18/t.

Prof Stuart Haszeldine, SCCS Director, said: “I congratulate Pale Blue Dot and their partners on this excellent study, and I was pleased to be able to provide technical advice and oversight during the project. Their work shows that affordable, well-engineered CO₂ storage is within reach. With huge progress also being made in CO₂ capture engineering, from innovations both in the UK and other countries, it is probable that the cost of capturing CO₂ will tumble by anything from 20% to 90% in the next five years. Coupled with effective and viable storage, this will bring climate clean-up within viable price ranges for applications as diverse as electricity generation, heat supply, transport and particularly the process industries.”

Dr Gillian Pickup, of Heriot-Watt University, who also provided advice to the project, said: “Firstly, the fact that this project has been completed despite the UK Government pulling £1 billion for the first commercial-scale carbon capture and storage (CCS) projects is reassuring. It demonstrates that many people are determined that CCS should go ahead. The project aims were to identify the next phase of sites for CO₂ storage offshore UK. This study shows that geoscientists and engineers in the UK are gaining more experience at evaluating potential sites.”

Edited from various sources by Harleigh Hobbs

Another Queensland coal worker has been diagnosed with coal worker’s pneumoconiosis, also known as black lung, Queensland Natural Resources and Mines Minister, Dr Anthony Lynham, has announced.

Speaking in the state parliament, the minister said that a 55 yr old underground miner from central Queensland had been confirmed as having the disease. The miner has worked underground for 28 yrs.

“It’s critical that government, industry and unions continue our work together to tackle the re-emergence of this disease,” said Dr Lynham.

“I commit hear again in this House to take whatever action is required to protect the health and safety of our coal miners.”

The worker was diagnosed with black lung after an x-ray offered by his employer to all employees late last year, following the emergence of a number of cases of the disease. It takes the number of cases in the state to seven.

Edited by Jonathan Rowland.

Thyssenkrupp Industrial Solutions has announced a reorganisation of its business units as part of the company’s “planets” transformation programme.

As part of this, the current resource technologies business unit will be dissolved and its operating units upgraded to full business units. As a result Industrial Solutions will have eight business units including mining technologies.

“We are operating in a difficult environment and want to make our organization faster, more flexible and more efficient,” said Jens Michael Wegmann, CEO of the Industrial Solutions business area.

The new business units will have global responsibility for the development of their businesses, project management and profit and loss. They will report directly to the management board of the Industrial Solutions business area.

The company also announced appointment of Johan Cnossen to the new position of Chief Operating Officer. Previously the CEO of KHD Humboldt Wedag, Cnossen will lead the company’s transformation efforts.

Edited by Jonathan Rowland.

World energy consumption is expected to grow by 48% between 2012 and 2040 according to the US Energy Information Administration’s (EIA) recently released International Energy Outlook 2016 (IEO2016).

The majority of this growth is anticipated to come from countries that are not in the Organisation for Economic Cooperation and Development (OECD), including countries where demand is driven by strong economic growth, particularly in Asia. Non-OECD Asia, including China and India, accounts for more than half of the world’s total increase in energy consumption over the projection period.

According to the EIA, concerns about energy security, effects of fossil fuel emissions on the environment, and sustained, long-term high world oil prices support expanded use of non-fossil renewable energy sources and nuclear power. Renewables and nuclear power are the world’s fastest growing energy sources over the projection period. Renewable energy increases by an average 2.6%/yr through 2040; nuclear power increases by 2.3%/yr.

Even though non-fossil fuels are expected to grow faster than fossil fuels (petroleum and other liquid fuels, natural gas and coal), fossil fuels still account for more than three-quarters of world energy consumption through 2040. Natural gas, which has a lower carbon intensity than coal and petroleum, is the fastest-growing fossil fuel in the outlook, with global natural gas consumption increasing by 1.9%/yr. Rising supplies of tight gas, shale gas, and coalbed methane contribute to the increasing consumption of natural gas.

Although liquid fuels – mostly petroleum-based – remain the largest energy source, the liquids share of world marketed energy consumption is projected to fall from 33% in 2012 to 30% in 2040. As oil prices rise in the long term, many energy users adopt more energy-efficient technologies and switch away from liquid fuels when feasible.

Source: EIA.

Coal is the world’s slowest-growing energy source, rising by only 0.6%/yr through 2040. Throughout the projection period, the top three coal-consuming countries are China, the US and India, which together account for more than 70% of world coal consumption. China alone currently accounts for almost half of the world’s total coal consumption, but a slowing economy and plans to implement policies to address air pollution and reduce carbon dioxide emissions mean that coal use in China will begin to decline in the later years of the projection period. Coal use in India continues to rise and surpasses US coal consumption after 2030.

Much of the analysis conducted for the IEO2016 was done before the release of the US Environmental Protection Agency’s final Clean Power Plan (CPP). For this reason, the IEO2016 Reference case does not include the potential effects of the CPP regulations in the US analysis that shows the potential for significant reductions in US coal consumption and increases in US renewable consumption compared with the Reference case projection. Key tables and figures throughout the report provide results that also include the effects of the CPP where they differ significantly from the IEO2016 Reference case results, based on the EIA’s analysis of the preliminary CPP rule.

Source: The EIA. Edited by Harleigh Hobbs

Atlantic Carbon Group reported total anthracite sales of 64 348 t in 1Q16 compared to 44 356 t in 1Q15, mostly on the back of ROM coal sales. Clean coal sales were also up to 38 288 t despite adverse market conditions.

“Due to an unusually mild winter in northeastern USA, winter home heating sales were very poor in 4Q15,” the company. These market conditions have hit all producers of Pennsylvania anthracite with some aggressively lowering prices to gain ground in industrial markets.

“Our tactic has been to hold our ground as much as possible, focusing on saving money by reducing costs with the pit working four days rather than five and the [reducing] wash plant shifts,” Atlantic Coal said.

The company’s clean coal stockpile now stands at 25 217 t with 107 559 t in the ROM stockpile.

Atlantic Carbon owns the Stockton anthracite mine in Luzerne County in the Pennsylvania anthracite fields. The mine has proven reserves of 1.9 million t.

The UK-based company is not the only anthracite miner to reduce worker levels in order to save cuts. In late March, Blashcak Coal said it had laid off 27 of its full-time workers – although the company said at the time it would be a temporary layoff.

“It all related back to the very warm winter weather we had,” J. Greg Driscoll, Blashcak’s President and CEO, told local newspaper, the Republican Herald. As you know, anthracite is used quite extensively in home heating around the country. And that was pretty significantly impacted by this past winter.”

Edited by Jonathan Rowland.

Armstrong Energy announces a loss of US$13.324 million in 1Q16, according to its latest quarterly results statement, as revenue slumped by 37% from to US$60.44 million. Coal sales fell 27.6% to 1.424 million.

“There continues to be weakness in the US thermal coal markets, driven by low natural gas prices, increased government regulations, and continuing mild weather,” Armstrong said.

“In addition, utilities are experiencing historically high coal inventory stockpiles as their burn is down and have, therefore, been forced to defer contracted tonnages,” the company continued. Earlier this month, Peabody Energy warned that it expected US coal shipments to fall by 175 million – 210 million short t this year.

Cost of coal sales fell 33.2% on the weaker sales volumes, as well as operating efficiencies related to favourable repair and maintenance costs, lower fuel costs and better mining conditions. The average cost of coal sales per short ton was US$36.99, down from US$40.08 in 1Q15. Average sales price was US$42.44 per short t.

The company also said it expected to further cut production to meet current demand levels. In April, it issued notice to workers at the Parkway mine and associated preparation plant that the mine would be closed. Production is expected to end in 2Q16.

The company remains saddled with significant interest repayments, however. It recorded interest expenses of US$8.108 million over the quarter – hitting the company’s bottom line significantly. In comparison, operating losses were just US$5.321 million.

At the end of the quarter the company reported cash on hand of US$63.1 million with an additional US$15.5 million available under its rolling credit facility. The company expects this to be enough to meet anticipated requirements through 2016 but did warn that further restructuring and CAPEX cuts could be necessary after then, if market conditions did not improve.

In February, Moody’s downgraded Armstrong’s credit rating, noting the “material downside risk over the medium term sue to possible closing of coal plants serviced by the company’s mines in favour of gas-fired generation.”

Edited by Jonathan Rowland.

Environmental activists are planning a “mass civil trespass” to close down one of Europe’s largest coal mines in Lusatia, Germany, this weekend.

Organised by Ende Gelände, an anti-coal and anti-nuclear power movement based in Germany, the event will target the lignite mine, aiming to stop excavation equipment and halt coal trains from delivering their loads to nearby power plants.

The activists are demanding an immediate end to coal mining at the site and a full transition to renewable energy.

The mine is owned by Swedish state-owned utility, Vatenfall, which recently announced it would divest its German lignite mining operations to Czech company, Energetický a prumyslový.

The action follows similar action at the Ffos-y-fran opencast mine in south Wales, where several hundred protestors managed to halt operations.

Edited by Jonathan Rowland.

RungePincockMinarco’s (RPM) advisory team has been awarded NSW Mining’s Outstanding Supplier of the Year award at the NSW Mining Industry & Suppliers Awards Dinner in Sydney.

In a celebration of the people and businesses that make NSW mining strong amidst a backdrop of low commodity prices and challenging economic conditions, this award recognises RPM as a success story and Australasia’s leading Mining Advisory company.

Speaking about this achievement, Philippe Baudry, Executive General Manager – Advisory said: “We could not be prouder of the achievements of our entire Australian Advisory team. The drop in commodity prices has been steeper and has gone on for longer than anyone in the industry anticipated. Mining companies have done a remarkable job of reducing their cost of production. However, much of the low and medium hanging fruit in this space has now been picked from the tree.”

Baudry continued: “As a supplier to the industry, we have focused on being a provider of genuine technical capability and delivering a high-quality offering rather than simply capacity and have invested heavily in integrating our Advisory expertise with our industry-leading software solutions to ensure we provide the best possible level of service and optimised and practicable outcomes for our clients.”

Through the delivery of services to its customers – predominately mining companies and the financial services industry – as well as active engagement in key industry bodies – Austmine, AUSIMM and the Sydney Mining Club – RPM has not only illustrated its commitment to the NSW Minerals industry but to the entire mining ecosystem. Daniel Peel, RPM’s General Manager Advisory Sales for Australasia is the Chair of the Sydney branch of AUSIMM and Richard Mathews, RPM’s CEO, is a Board member of the Federal Governments Mining Equipment Technology and Services Growth Centre (METS Ignite).

RPM’s active engagement is shown in the wide use of RPM’s mine planning and costing software in many of NSW’s major mining assets, its advisory services support of the development of new and existing operations and our involvement in investor-related activities in the NSW resource sector.

Baudry concluded: “RPM’s internationally renowned Advisory team prides itself on being active members of the industry and an example of how innovative operating practices can ensure resilience in such a tough market. Our advisory team of technical mining experts focus intently on delivering the RPM Global Advisory Advantage – a tailored, mining industry workhorse powered to partner with clients to unlock latent capability from mining operations and to provide judicious investment advice for investment clients.”

Edited from press release by Harleigh Hobbs

Caterpillar Inc. Chairman and CEO Doug Oberhelman, along with Caterpillar executives and representatives from RIMCO, the Cat dealer serving Cuba, are travelling to Cuba this week to meet with government representatives to enhance Caterpillar’s already established strong relationship in this emerging market.

Oberhelman’s visit is the latest step in the company’s ongoing efforts to promote open markets and free trade. This historic visit represents the most recent Caterpillar efforts to engage with Cuba both on business and cultural levels. Earlier this year, RIMCO, the Cat dealer currently serving Puerto Rico, was selected as the Cat dealer for Cuba.

“We believe in the power of engagement, and our goal is to be both a business and cultural partner in Cuba for many years to come,” said Oberhelman. “For nearly 20 years, Caterpillar has called for an end to the unilateral embargo. Our visit this week lays important groundwork for Caterpillar and RIMCO to serve the Cuban market once remaining trade restrictions are lifted. We are grateful for the courteous and warm reception we have received.”

“We are extremely pleased to return to Cuba once again to continue analysing the market,” added Richard F. McConnie, President of RIMCO. “We look forward to offering the Cat solutions and traditionally outstanding service to help develop Cuba’s infrastructure and improve the quality of life of Cuban people.”

While steps remain to achieve fully normalised relations, including lifting the existing embargo, RIMCO and Caterpillar will continue preparations to best serve the Cuban marketplace with construction machines, power systems, turbines and engines.

Additionally, at an event today held at the Cuban home of the late Ernest Hemingway, Caterpillar announced that it will add to the previous US$500 000 donation made by Caterpillar and the Caterpillar Foundation to The Finca Vigía Foundation with the donation of a Cat skid-steer loader. The skid-steer loader will be used to support the construction of the Taller building, an onsite conservation laboratory with archival storage facilities located at the Hemingway House. The Taller will be used to house historic Hemingway artifacts and documents.

“We are proud to support The Finca Vigía Foundation’s work,” said Caterpillar Foundation President Michele Sullivan. “By working together with a number of partners, this project will help build a sustainable and thriving community, which is good for everyone.”

Edited from press release by Harleigh Hobbs

Peabody Energy recorded a net loss of US$165.1 million in 1Q16, according to its latest quarterly results statement, on the back of a steep declines in revenues. Peabody Energy announced last month that it was entering Chapter 11 bankruptcy protection, the latest in a string of big US coal companies to head to bankruptcy court.

Total revenues fell US$510.7 million y/y to US$1.027 billion, more than offsetting cuts to operating costs of US$401.4 million. Revenues were down across its operating segments. Its key Power River Basin (PRB) mines – the largest contributor to Peabody’s revenues – say revenues fall to US$336 million from US$508 million the year before.

“In the US, electricity generation from coal decreased 23% during the three months ended March 31 2016,” said the company quoting figures from the US Energy Information Administration. “US electricity generation from coal was unfavourably affected during that period by coal-to-gas switching due to 14 yr low natural gas prices and lower heating-degree says due to mild winter weather.

As a result coal sales were down across its US coal mining segments. In the PRB, coal sales were down 34%, while its Western coal sales were down 38% and Midwestern coal sales down 24%.

Looking ahead and the company said it expected US utility demand for coal to fall by 75 – 100 million short t in 2016. When stockpile drawdown and weaker exports are added into the mix, Peabody expects a fall of 175 – 210 million t in US coal shipments in 2016.

Meanwhile at its Australian assets – which aren’t included in the bankruptcy proceedings – revenues from metallurgical coal fell from US$333.3 million in 1Q15 to US$205.1 million in 1Q16. Revenues from Australian thermal coal fell from US$214.9 million to US$176.7 million.

“Demand for seaborne metallurgical coal for the three months ended March 31 2016 was adversely impacted by a 3.6% decrease in worldwide steel production,” Peabody said, using figures from the World Steel Association.

“Policy measures in China aimed toward supporting the domestic coal industry also limited imports into Chine during the period. Such measure, along with a lock of growth in global electricity generation from coal have also hampered demand for seaborne thermal coal thus far in 2016.”

Australian metallurgical coal sales were down 11%, while its Australian thermal coal sales bucked the trend to finish the quarter up 2%.

Edited by Jonathan Rowland.

Essar Power Gujarat Ltd (EPGL), which owns and operates a 1200 MW imported coal-fired thermal power plant at Salaya in Gujarat’s Devbhumi Dwarka district, has seen its provisional EBITDA for FY16 (the financial year ending 31 March 2016) grow by 163% y/y, increase from Rs 199 crore in FY15 to Rs 525 crore.

The PAT is around Rs 35 crore, compared to a loss of Rs 684 crore in FY15. This turnaround in performance is attributed to higher operational efficiency, a reduction in coal prices through e-auction based procurement and normative plant availability.

According to EPGL, a key factor driving its financial performance is the reverse e-auction platform set up by EPGL helped widen the coal supplier base for the company. Vendors from the US, Russia, Columbia and other countries placed competitive bids in a transparent manner. Global competition helped EPGL source coal at prices lower than those prevailing in the market.

For the third consecutive year, EPGL ensured 80% availability for its single largest client, Gujarat Urja Vikas Nigam Ltd, the state-owned power distributor with whom it has a 25-year PPA.

EPGL has aligned the repayment of the term loan to the life of the power plant under 5/25 scheme of RBI. The company has also upgraded its investment grade rating to BBB-, which will enable it to reduce its interest rates going forward.

The Salaya plant is among the top operated power plants in the country. EPGL has received several accolades for operational efficiency, including the CII Award for Energy Efficiency, the Gold Category Award for Safety from Greentech Foundation and the Peabody Award for lowest emission of SO₂ and NO_X.

Ramesh Kumar, Managing Director stated: “I am delighted with EPGL’s performance. We have worked relentlessly amid a challenging business environment to deliver more than a 150% jump in EBITDA. We are on course to harness greater efficiencies in the current financial year once the sea water intake system and coal conveyor corridor are commissioned. These are expected to add Rs 150 crore to the EBIDTA. We therefore expect better operational efficiency, which will sustain and improve performance in FY17.”

Edited from press release by Harleigh Hobbs

Coal will be the slowest-growing energy source to 2040, according to the latest International Energy Outlook (IEA2026) for the US Energy Information Administration. Use of the black rock will grow at just 0.6% per year over the forecast period compared to 1.9% per year for natural gas – the fastest-growing fuel source.

As a result, natural gas surpasses coal as the world’s second-largest energy source after liquid fuels by 2030. In the world’s electricity generation mix, coal loses its crown with it, natural gas and renewable energy sources all providing roughly equal shares (28 – 29%) of world electricity generation by 2040.

This contrasts to coal’s dominant 40% share of the global electricity mix in 2012.

China, the US and India continue to account for more than 70% of global coal use over the forecast period – although only India is projected to increase its coal use to 2040. Slowing economic growth and plants to address air pollution and climate change in China contribute to falling coal use in China over the latter years of the projection.

Coal use in the US will fall over the forecast period – but its exact decline varies depending on the regulatory – and consequently the political – environment. The impact of the Clean Power Plan, which is not included in the IEO2016 Reference Case, substantially lowers US coal use from the level projects in the IEO2016 reference case.

Yet even this relatively gloomy outlook for coal may be more optimistic than actual outcomes as the IEO2016 reference case assumes current laws and regulation are maintained throughout the forecast period. As mentioned above, it does not include the CPP in its Reference Case, or the implications of the Paris Agreement on climate change agreed last year.

Moreover, any significant climate change regulation in key regions – particularly in Asia – may force coal demand further still compared to the reference case.

On the supply side, world coal production in the Reference Coal increases from 9 billion short t in 2010 to 10 million short t in 2040 with most growth occurring in India, China and Australia. Their combined share of total world coal production increases from 60% in 2012 to 64% in 2040 – although China’s share of production actually falls from 48% to 44%.

Edited by Jonathan Rowland.

Over a quarter of the illegally constructed coal mines that were ordered to suspend operation and construction are still producing coal, according to China Coal Resource, with annual capacity reaching 235 million t.

A total of 146 coal mines were ordered to suspend operations – but 38 of these continue to produce coal with 28 of these owned by large state-run firms, including Shenhua, China Coal Group, Shandong Energy and Yankuang Group.

These 28 mines account for 205 million tpy of production, China Coal Resource said, or 87% of the total coal produced the 38 illegally operating mines.

The issue of illegal coal production in China is problematic – increasingly so given current oversupply of coal in the Chinese market. The Chinese government has committed to removing 1 billion t of production capacity by 2020.

But efforts to close coal mines have been marked by industrial unrest, leading some analysts to question the viability of the government’s plans.

“Both government efforts at consolidation and company efforts to reduce production costs will be affected by rising tensions among workers,” said BMI Research in a recent note.

Worker demonstrations doubled in China in 2015 to 2774, according to figures from the Hong Kong-based China Labour Bulletin, while December 2015 saw a monthly record set.

IEA Clean Coal Centre

Lignite is poorer quality coal, typically with a high moisture and ash content, which is cheap and abundant. In the face of tightening emissions legislation, the lignite power industry has to find ways to generate electricity more efficiently and cleanly, while remaining economic. It is possible for modern high-efficiency low-emission (HELE) lignite power plants to approach the performance of hard coal electricity stations (40%+). But much of this low-cost power generation uses raw lignite feed and subcritical steam boiler technology. This means the average efficiency of the lignite fleet is only about 28% and there are some 60 yr old stations still running.

Despite these drawbacks, lignite is an essential fuel in many countries. This means that outdated plants must be upgraded or replaced to meet current and future standards. In his new report for the IEA Clean Coal Centre, Dr Ian Reid identifies two distinct trends in the lignite industry:

• The construction of new power plants in developing countries, where lignite is relatively cheap and energy demand is growing fast.
• Competition from renewable energy sources in mature economies with underperforming plants re-assigned to reserve supply.

New emission limits for acid gases are a real challenge for existing lignite plants: typical current limits of 200 mg/m³ are under review. For example, China has set limits of 100 mg/m³ NOx for stations up to twelve years old. Mercury has been added to the list of regulated flue gas components and there are tough new stringent limits for fine particulates.

New lignite plants can be designed to include the recognised ‘best available technologies’ to reduce pollutant emissions: selective catalytic reduction (SCR), particulate bag houses, carbon injection and flue gas desulphurisation (FGD). But it may not be possible to retrofit these adaptations to older plants due to the cost, a lack of space, and duration of plant outage. The same reasons make a potential efficiency upgrade from sub to super or ultra-supercritical (USC) steam conditions unlikely.

However, there are some suitable retrofit technologies which can extend the operating lifespan by 10 – 15 yrs, improve performance and reduce emissions. Such modifications include: replacing aged equipment; selecting technologies that can be added to existing plant in a straightforward manner; and fitting treatment methods that are cheaper than mainstream technologies and require a shorter outage time for installation.

Lignite beneficiation and steam turbine replacement may have the most impact on overall efficiency. Using modern control systems and improved wireless instrumentation, smart antifouling methods, and replacing old pumps and ID fans can also improve performance. The optimum upgrade package depends on national regulations and will vary for individual plants.

Lignite beneficiation has been extensively investigated and fluidised bed pre-drying utilising low-grade heat streams is currently the most promising technique. Established plants in Germany (RWE/WTA) and the USA (GRE/DryFining™) show efficiency gains of several percent dependent on the degree of dryer integration. The differences are that WTA is designed for wet lignite (>60% H2O) while DryFining™ (~35% H2O) also possesses a segregation step that partially removes dense minerals containing sulfur and mercury.

Over a period of 20 yrs, steam turbines typically demonstrate energy losses of 3 to 4%, while new designs using contoured and extended blades offer improved durability and higher efficiency. Steam turbine replacement can now utilise existing casings, which reduces the installation time and has become the most common retrofit efficiency improvement.

Alternatives to mainstream effluent treatment combine a set of technologies to match SCR/FGD performance and include hybrid and multicomponent systems to reduce the emission of acid gases and other pollutants. Suitable retrofit technologies may have a relatively low initial investment cost but consume higher levels of reagents.

Hybrid systems incorporate low NOx burners (LNBs) and selective non-catalytic reduction (SNCR) technologies to match the efficiency of a new SCR NOx unit. Originally conceived as an ammonia slip trap ‘compact SCR’, at one quarter scale, it can match the full SCR performance but fit into existing piping. An ozoniser forming part of a hybrid system that oxidises rather than reduces NO can achieve lower levels of NOx than SCR, and can also oxidise mercury to soluble HgO.

Multi-component technologies remove several contaminants in a single device. Airborne™ utilises sodium bicarbonate (SBC) which reacts with both acid gases to outperform SCR+FGD. The SBC is then regenerated to produce fertilizer which helps to overcome economic barriers. The ‘Clean Combustion System’ is a gasifier ‘add-on’ hybrid reactor, which adapts an existing boiler to create reducing conditions, and so prevents the formation of NOx. Furthermore, sulfur forms molten sulfides, which are removed before the boiler section, which is especially attractive for processing high ash fuels. This technology has the potential to essentially replace an effluent treatment plant.

Where renewable energy is widely used, lignite plants will need to respond to a variable load range to cope with the intermittency of wind and solar power. The primary aim of flexibility measures is to maintain the reactor in a ‘hot’ state to minimise the time needed to bring the plant fully on-stream.

In regions where natural gas is cheap, the combination of a gas turbine and lignite plant can maintain the lignite boiler at readiness (using waste heat), enhance overall capacity and allow early synchronisation to the grid. Alternatively, a hot water reservoir can be introduced to even out the effects of capacity load variation on the steam system.

The technologies outlined offer a range of options to improve plant efficiency, flexibility and emission. The significance of these technologies, specifically for plant retrofits has become increasingly relevant due to recent exacting legislative standards.

Edited by Jonathan Rowland.

Anglo American has announced the commissioning of its Grosvenor metallurgical coal longwall operation in the Bowen Basin of Queensland, Australia.

The Grosvenor project, which was approved for development at the end of 2011, has delivered its first coal from its underground longwall seven months ahead of schedule and more than US$100 million below budget.

Anglo American expects Grosvenor to produce 3.2 million saleable t in 2016. At full capacity, the Grosvenor longwall is capable of producing 7.5 million saleable tpy. When fully ramped up, Grosvenor is expected to operate at an all in sustaining unit cost of AUS$110/t (approximately US$82/t at the current exchange rate).

Seamus French, CEO of Bulk Commodities for Anglo American, said: “We have delivered the Grosvenor metallurgical coal project ahead of schedule and below budget, with an outstanding safety record and in line with our environmental obligations. The Grosvenor mine project has taken more than seven million man hours to construct, with almost 6000 personnel inducted onto the project.

French continued: “We began the installation of the longwall just 24 days before its first shear and production of coal – a truly remarkable feat and a result of the team’s technical expertise and the modular approach we have taken to our underground longwall operations in Australia. We look forward to shipping the mine’s high-quality product to our steel customers across Asiaas production begins to ramp up in the months ahead. While Grosvenor may not fit Anglo American’s strategic portfolio choices, its long-term commercial attractiveness is beyond question.”

Edited from press release by Harleigh Hobbs

Coal is a key component of a secure energy supply, according to a new study from the IEA Coal Industry Advisory Board (CIAB), which assesses the impact of coal use on energy security in several important world regions.

“The use of coal contributes not only to affordable energy prices, allowing broader access to electricity but also improved industrial competitiveness of the economy,” the CIAB said in a press release the highlights the key findings of the report.

The report also found that coal use should work together with the use of renewable generation to bring down greenhouse gas emissions: “Coal and renewables complement each other and are partners in the effort to meet present and future energy requirements,” said Dr Hans-Wilhelm Schiffer, leader of the CIAB Energy Security Working Group and Lead Author of the report.

“Coal-fired power plants provide dispatchable capacity due to their ability to operate flexibly and so compensate for the fluctuations of wind and solar energy supply. In addition, coal-fired power plants can also be seen as an economic balance to the higher system costs of most renewable energies.”

The report concludes that there needs to be an increase in support for high-efficiency low-emissions coal-fired power plants and carbon capture and storage technologies in order to keep coal within the energy mix, while meeting commitments to reduce greenhouse gas emissions.

“It is recommended that governments promote these technology solutions in order to improve their acceptance and provide a legal framework which allows investment in these advanced technologies,” the CIAB concludes.

“As the Paris Agreement is formally adopted, it is vitally important that its implementation integrates environmental imperatives with the aims of universal access to energy, energy security and social and economic development. All low-carbon technologies must play a role including HELE coal technology and CCS,” said Benjamin Sporton, CEO of the World Coal Association in response to the release of the report.

Edited by Jonathan Rowland.

At this year’s MINEX Central Asia fair, held in Kazakhstan in April, the German mining consulting company DMT sealed a cooperation agreement and signed a memorandum of nderstanding (MoU) with Kazakhstan’s national geological exploration company Kazgeology.

The aim of the collaboration is to develop the evaluation of mineral deposits in Kazakhstan to recognised international standards.

“Kazakhstan plans to evaluate its deposits in accordance with the international CRIRSCO standards in the future, in order to attract international investors to the country,” explained DMT Managing Director Prof. Eiko Räkers. “As an international consulting firm with many years of experience in this area, DMT is proud to have been selected to support Kazakhstan in this important task.”

The construction of a geochemical laboratory, in which rock, stream sediment, soil and drill core samples can be analysed, is currently being planned. In addition, a data processing centre is to be set up, where geochemical, geological and geophysical data will be used to generate geological 3D models. DMT and its partners will also be responsible for educating and training the employees of Kazgeology.

Edited from press release by Harleigh Hobbs

FLSmidth, a leading supplier of equipment and services to the global cement and minerals industries and GE, a leader in the Industrial Internet, are working together to create digital solutions for increasing productivity in the cement and minerals industries.

The new solutions developed on GE’s cloud-based Predix platform will leverage FLSmidth’s expertise in cement and minerals processing and GE’s Industrial Internet of Things (IoT) capabilities to maximise the potential of connected equipment units, helping the cement and mining industry to increase productivity.

FLSmidth will build their solutions on top of GE’s Predix platform with applications for managing process flows thereby allowing customers to leverage process data and analytics for monitoring, benchmarking their performance and predicting maintenance of their equipment.

Operating costs account for around 80% of the total cost of ownership for a cement plant or running a mining operation, and energy is the single largest component.

An ongoing monitoring of processes makes it possible to increase productivity significantly.

“Cement and mining companies already collect significant volumes of data, but currently, only a fraction of it is used. This will be the first available solution for a full coherent process monitoring to leverage optimidation solutions offered by a full service provider like FLSmidth,” explained Head of Global R&D in FLSmidth Jens Almdal. “By connecting our control applications with GE’s platform, we can bring FLSmidth’s proven expertise in resource optimisation and productivity together with GE’s monitoring and data analytics solution to create an unrivaled combination that will dramatically improve the productivity in the cement and minerals industries.”

“FLSmidth and GE are bringing together the best from two worlds, GE’s digital industrial expertise to help customers to be more productive and FLSmidth’s deep insight into processes and maintenance of cement and minerals plants. Our collaboration will form a strong foundation for the development of a greater digital ecosystem,” added John Manison, General Manager of GE’s Mining Solutions business.

The FLSmidth control applications integrated on GE’s Predix platform will be launched in 3Q16.

Edited from press release by Harleigh Hobbs

Renewables and natural gas generation will meet most of an expected need for significant new electric capacity in Saskatchewan, Canada, according to the latest report from the National Energy Board (NEB).

In its ‘Canada Energy Future 2016: Provice and Territory Oulooks’, the NEB notes that “between now and 2040, Saskatchewan will require a large amount of new electric capacity to meet annual growing demand and replace coal-fired facilities. This will be met most by new renewable and natural gas capacity.”

The switch from old coal-fired power plants to natural gas and renewables comes despite the fact that Saskatchewan hosts the first commercial-scale carbon capture and storage retrofit of a coal-fired power plant at Boundary Dam.

The NEB is an independent federal regulator of several parts of Canada’s energy industry, including pipelines, energy development and trade.

Edited by Jonathan Rowland.

Fuel Tech Inc. has received an order for multiple air pollution control (APC) contracts from customers in China. These awards have an aggregate value of approximately US$2.2 million.

An award was received for Fuel Tech’s NOxOUT® Selective Non-Catalytic Reduction (SNCR) systems for multiple coal-fired utility boilers. Equipment deliveries are expected to occur during 2Q16 and 4Q16, as well as 2Q17. Fuel Tech’s SNCR technology is proving to be a viable solution as combustion unit owners look to comply with more stringent NO_X control requirements mandated by China’s environmental regulatory policies.

Additionally, orders were received for multiple ULTRA™ systems that will be installed on units firing coal and municipal solid waste, which are being retrofitted with NO_X reduction technology. Fuel Tech’s ULTRA process provides for the safe and cost-effective onsite conversion of urea to ammonia for use as a reagent where SCR is used to reduce NO_X eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia.

Vincent J. Arnone, President and Chief Executive Officer, commented: “These orders continue to demonstrate our capabilities to provide cost-effective technology solutions on a global basis. With our industry-leading suite of APC products and services, we believe we are well positioned to compete for additional opportunities in the domestic and international markets.”

Edited from press release by Harleigh Hobbs

Op-Ed Columnist

May 11, 2016

By ERICA GOODE

May 12, 2016

A leading food products manufacturer has ordered four Activated Carbon Injection (ACI) systems from ADA-ES Inc. to reduce mercury emissions from its coal-fired boilers. The systems will enable the company to comply with the Industrial Boiler Maximum Achievable Control Technology (IB MACT) regulation from the Environmental Protection Agency (EPA).

The four ACI systems will assist in controlling mercury emissions from coal-fired industrial boilers used in its sugar manufacturing process, allowing the company to remain IB MACT compliant regardless of seasonal temperatures and other factors that may impact mercury emissions levels.

“Operating coal-fired boilers, while controlling emissions, is a dynamic challenge, since changes in fuel, equipment operations, reagents and even seasonal variations can impact successful compliance,” explained Sharon Sjostrom, Chief Product Officer of ADA’s parent company Advanced Emissions Solutions Inc.

“Understanding the variety of factors that impact compliance, operating cost and reliability is essential as companies weigh their options to comply with environmental regulations” continued Sjostrom. “ADA is delighted to help [this] client address compliance challenges in increasingly competitive energy markets.”

Edited by Jonathan Rowland.

New Colombia Resources Inc. has received approval from the Agencia Nacional de Mineria (ANM) for concession contract JJF-15481 for 1186 ha. (2930 acre) of metallurgical coking and thermal coal and other grantable minerals.

The concession contract was signed last year between the National Mining Agency, ANM and Erasmo Almanza, Director of New Colombia Resources. The announcement is being made now to make shareholders aware of this development and because the contract is now current on its taxes.

This concession contract is 11 KM parallel to the Ruta del Sol mega road project that connects central Colombia to the Caribbean coast. Transportation of coal or raw building materials from this concession will benefit greatly from the Ruta del Sol. The sizable mining title stretches two municipalities, Guaduas and Caparrapi.

This contract adds to the portfolio of New Colombia Resources, which includes a soon to be signed contract for 183.3 ha (452 acres) contiguous to their current concession contract # ILE-09551 in Guaduas, Colombia. That new concession contract application number is OG2-10451. On 15 April 2016, the ANM posted a notice for Mr Almanza to accept new terms for the concession contract within 30 days and adjust the Exploration Program Format A. The company intends to accept the terms of the contract and has adjusted the Format A as requested.

Edited from press release by Harleigh Hobbs

Cluff Natural Resources has continued to progress its conventional oil and gas assets in the UK North Sea, following the introduction of moratorium on underground coal gasification (UCG) in Scotland in October 2015. The company owns five conventional licences in the southern North Sea with a potential net resource base of about 140 million boe.

“We have carefully considered our position and believe that the North Sea not only continues to be of strategic importance to the UK but also compares favourably with most of the world, boasting a market, an infrastructure and a Government, on the whole, determined to sustain activity,” Cluff Chairman and CEO, J.G. Cluff.

Cluff was critical, however, the of Scottish government’s decision to end development of UCG, as well as the UK government’s pursuit of shale gas and renewables – the detriment of other energy sources.

“We considered that underground offshore coal gasification could make a significant future contribution to the energy equation by converting billion of tonnes of offshore coal into gas,” said Cluff. “However these aspirations have not been endorsed by Government which prefers to place its primary hopes on the delivery of onshore shale together with questionable and heavily subsidised renewables.”

Cluff continued: “We accordingly concluded that continuing to pioneer for a future energy formula which would convert cleanly and safely our offshore coal into gas was not consonant with our shareholders’ best interests.”

Edited by Jonathan Rowland.

Advanced Emissions Solutions (ADES) reported a profit of US$4.4 million in 1Q15 compared to a loss of US$6.1 million the year before, according to its latest results statement.

Operating losses continued, however, albeit at a reduced level and despite a slight rise in revenue. The company reported an operating loss of US$3.3 million in 1Q16 compared to a loss of US$6.9 million in 1Q15.

“We executed very well against our strategic priorities during the first quarter and were happy to deliver positive next income,” said L. Heath Sampson, President and CEO of ADES.

Revenue was driven by the companies emissions control business, which saw growing momentum in its activated carbon injection and chemicals businesses with several significant sales expected during 2Q16.

The company also said it expected to transition an investor from a lower-tonnage to a higher-tonnage refined coal facility, resulting in a US$7 million payment to ADES, in 2Q16.

At the end of the quarter, the company said it has cash and cash equivalents of US$5.5 million – a fall of 41% on the end of the previous quarter following US$3 million principal debt repayments.

Edited by Jonathan Rowland.

The Army Corps of Engineers has denied the permit allowing the development of the Gateway Pacific Terminal in Washington state because of the proposed coal export terminal’s impact on protected tribal fishing rights.

“Based upon the facts and findings, the Corps’ determination is that the proposed overwater structure would have greater than a de minimus impact on the Lummi Tribe’s access to its usual and accustomed fishing grounds,” the Corps’ said in its decision.

On this basis, Seattle District Commander Colonel John Buck determined the project was “not permittable as currently proposed”.

In 1855, the Lummi Nation signed the Treaty of Point Elliot, which established various reservations and guaranteed fishing rights in perpetuity at each of the tribe’s usual and accustomed fishing areas. The Gateway Terminal project area covered these areas.

According to the US Army Corp’s of Engineers press release announcing the decision, the Corp’s may not permit a project that abrogates these treaty rights. It also noted that should the Lummi Nation withdraw its objections to the proposal in the future, the project could restart processing of the application.

Edited by Jonathan Rowland.

A large US utility has chosen Advanced Emissions Solutions Inc.’s wholly owned subsidiary ADA-ES Inc.’s patented M-Prove™ Technology for use at its coal-fired plant to meet mercury emissions compliance standards.

In addition to mercury control, the M-Prove Technology addresses balance-of-plant concerns for coal-fired power plants by reducing the corrosion risk associated with other commonly used chemicals, enhancing overall system reliability, and reducing environmental impact. The M-Prove Technology allows coal plant operators to use an environmentally benign chemical additive at very low levels to ensure cost effective mercury control compliance.

Coal-fired power plants are under pressure to comply not only with the Environmental Protection Agency’s Mercury and Air Toxic Standards (MATS), but also state-specific rules around mercury emissions that are often more stringent than MATS. These power plants must also tackle the long-term operating and maintenance costs associated with complying with these regulations. The M-Prove Technology includes a patented halogen-based, coal additive that is applied to coal before the combustion process to enable improved and more efficient capture of mercury through air pollution control systems.

“Now that most coal plants are required to be in compliance with MATS, plant managers are moving beyond implementation to optimisation and cost reduction. Plants want to be as efficient and reliable as possible, and that’s where the M-Prove Technology comes in,” said Sharon Sjostrom, Chief Product Officer of ADES, “We developed and patented the M-Prove Technology to provide the benefits of halogen addition for mercury control, without the potential negative impacts that have been observed with bromine. Our approach is to use a form of halogen that can be applied at very low levels. This essentially eliminates the risk associated with bromine injection at higher levels while achieving similar mercury control benefits.”

Coal-fired power plants typically only need 1/10 the amount of the M-Prove Technology chemical compared to other halogen-based coal treatments, such as bromine. Although it is possible to reduce the amount of bromine needed by applying transition metals, such as iron, to the coal, the company has also patented the combined use of transition metals with a halogen for the purpose of reducing mercury emissions. By using the M-Prove Technology, bromine related issues, such as corrosion in the flue gas path, issues associated with water treatment, leaching, or unintended environmental emissions, are effectively mitigated. The M-Prove Technology also allows the reduction of sorbent consumption for ACI systems. Coal-fired plants can easily modify their existing systems to use the M-Prove Technology with minimal investment and installation costs.

Sjostrom concluded, “Coal remains a robust part of the energy infrastructure. While its usage is declining, we can’t simply ‘turn it off’. Our mission at ADA is to provide coal-fired plants with solutions that help them comply more easily and cost-effectively with federal and state emissions regulations and become a more environmentally-responsible energy source. Using less chemical additive, we can give customers the emissions solutions they need, while at the same time, help them to improve their operational efficiency and minimise maintenance and repair costs. To date, our refined coal affiliate, Clean Coal Solutions, which uses the M-Prove Technology, has treated over 100 million tons of coal without any reported issues. This recent contract is further validation that our M-Prove Technology holds substantial value in today’s environment.”

Edited from press release by Harleigh Hobbs

Westmoreland Coal recorded a profit of US$30.6 million in 1Q16 on the back of a US$47.9 million income tax benefit. Revenues fell from US$371.5 million in 1Q15 to US$354.7 million in 1Q16 as prices remained soft and power demand weak on warm winter weather.

“Despite weak power demand during the first quarter, which was one of the warmest quarters on record, our mine-mouth and cost-protected model again helped us deliver solid results,” said Kevin Paprzycki, Westmoreland’s CEO.

Overall, the company sold 13.8 million t of coal in 1Q16 – up from 13.5 million t in 1Q15. US coal sales rose by 200 000 t as the company integrated the San Juan Coal Co., which it acquired from BHP Billiton at the end of January.

The company also cut cost of sales from US$301.5 million t to US$273.8 million over the quarter.

The company ended the quarter with US$17.8 million of cash and cash equivalents on hand – US$5.2 million lower than at the end of 1Q15. Its outstanding debt stood at US$1.1 billion – a y/y increase on the back of the San Juan acquisition financing.

Paying down that debt was now a priority, continued Paprzycki: “We have visibility into our cash flow stream because we entered this year with nearly 90% of our tonnes under cost-protected contracts. Our cash generation, considering normal seasonality, will strengthen following the second quarter, which typically experiences the year’s lowest energy demand. We will look to reduce debt later in the year with our increased cash flow.”

Edited by Jonathan Rowland.

FLSmidth, a market-leading supplier of engineering, equipment and services to the global minerals and cement industries, has extended its service level agreement (SLA) for five years to increase the use of Intergraph^® SmartPlant^® and Intergraph Smart™ solutions.

The main reason for FLSmidth increasing its use of Intergraph solutions is to have a single source plant design solution encompassing the full design cycle with shared master data from conceptual design to construction.

The Intergraph SmartPlant Enterprise portfolio used by FLSmidth includes Intergraph Smart 3D, SmartPlant Foundation, SmartPlant P&ID, SmartPlant Instrumentation, SmartPlant Electrical, SmartPlant Interop Publisher and SmartPlant Reference Data.

With local presence in more than 50 countries, FLSmidth focuses on coal, iron ore, fertilizers, copper, gold and cement industries, helping its customers to increase capacity, reduce operating costs and improve productivity while minimizing the environmental impact.

FLSmidth’s Karl Normington, Manager of SmartPlant engineering systems, commented: “We are pleased to enter into a new five-year agreement with Intergraph Process, Power & Marine. Intergraph’s suite of SmartPlant tools further increases our capability to produce quality plant design solutions. SmartPlant provides a platform to incorporate complex equipment into a 3D plant modeling environment, spanning all phases of projects from feasibility through construction and commissioning. Both our cement and minerals divisions will benefit from having one tool with master data shared seamlessly on a global platform.”

Gerhard Sallinger, Intergraph Process, Power & Marine president, said: “We are proud to see that our focus on better engineering information management solutions and improving the interoperability between the SmartPlant Enterprise Suite provides our customers with clear benefits. It is remarkable to work with companies who are leaders in their industries, such as FLSmidth.”

Edited from press release by Harleigh Hobbs

RungePincockMinarco (RPM) has today re-established its place in the coal market with the launch of their new opencast coal XPAC Solution (OCCS). This delivers a leap forward in scheduling specifically for the coal industry.

Craig Halliday, Executive Vice President – Software, commented: “This new open cut coal solution will handle more data and process schedules faster than any other application on the market. Everything about this solution is more comprehensive, streamlined and user friendly than any other product offered in the coal space previously.”

Differentiating it from competitors, RPM has delivered a new solution that is intended for coal miners facing the challenges of today. This opencast coal solution will incorporate sophisticated product optimisation, dynamic haulage functionality and the advanced destination scheduler.

One of the biggest challenges faced by mine planners is the ever-changing haulage routes in strip mines. The solution uses its dynamic haulage functionality to manage this with ease and sophistication.

“Planning haulage during the course of scheduling used to be a dream, but we have made it a reality. The Coal Solution’s Dynamic Haulage component is something unique. Cleverly considering the varying haul routes at each stage of the schedule, you can be confident that you have the optimal route to get your product from source to destination.”

The ability to deliver both correct product specification and targets is another major challenge so RPM has developed a method of optimisation that is comprehensive and powerful.

“Another key feature that is proving to be invaluable for coal miners is the Product Optimiser. Blending is critical in coal mining – being able to plan for this and optimise the schedule with your targets in mind is an integral part of the scheduling process. Using the Product Optimiser for multi pit management, multi stockpile management, and the delivery of multiple products, users can deliver results quickly during the course of running the schedule.”

As well as leveraging its latest innovations, RPM have stuck with some tried and true methods as well, such as the Advanced Destination Scheduler.

“The Advanced Destination Scheduler has long been a key component of RPM’s scheduling products, but now incorporated into the Coal Solution it is more powerful than ever. The scheduling of sources and destinations and incorporating haulage is all simultaneously at the time of building the schedule give a complete picture of the entire mining operation.”

“RPM pioneered the move into Enterprise Mine Planning, so in following that strategy this latest Solution benefits from all the development in that area. Using the central Enterprise Planning Framework the Coal Solution leverages the robust master data module allowing greater control and delivering new levels of transparency in planning. Utilising RPM’s enterprise model repository also ensures that a single source of the truth is used at all times.”

Edited from press release by Harleigh Hobbs

Ncondezi Energy has provided an update in relation to its 300 MW power plant project (Ncondezi power project), located near Tete in northern Mozambique.

Since the joint development agreement (JDA) with Shanghai Electric Power Co. Ltd (SEP) was announced in January 2016, both parties have been fully committed to satisfying the SEP investment conditions as quickly as possible and have made excellent progress.

The following update shows the progress the companies have made:

• Electricity de Mozambique (EdM) has indicated its in principle support for SEP to become the Strategic Partner in the Ncondezi power project and for the change to pulverised coal (PC) boiler technology, on the understanding that EDM will be afforded the opportunity to perform due diligence on SEP’s development plan, technical solution, project costs and financial model as soon as such information is available.
• A work programme and budget for the power plant development has been agreed between NEL and SEP and awaits respective Board approvals.
• The audit of Ncondezi’s historic power plant development costs is progressing well.
• NEL and SEP are in the process of finalising the key terms of the shareholders agreement that will govern the UAE holding company.
• Work to implement the UAE holding company structure for the Power Plant has started.

Ncondezi and SEP continue to target completing the SEP investment conditions by 31 May 2016 and are making good progress in this regard. Notwithstanding the progress made, it is possible that the implementation of the UAE holding company and the finalisation of the audit of historic costs will continue past 31 May 2016. In addition, following further discussions with SEP it is likely that the Chinese regulatory and parent company approvals will require additional time and are now expected to be concluded in 3Q16.

Update on the power plant

In addition to the SEP investment conditions, SEP and Ncondezi have reviewed the required changes to the current EPC proposals in order to change to a PC boiler. SEP and Ncondezi are working on the revised EPC process.

The PC technology proposal includes a flue gas desulfurisation system, which will result in the power project producing less emissions (both in relation to solid particles and sulfur oxides) than the original circulating fluidised bed (CFB) proposal. This has resulted in the change to PC technology requiring a review and resubmission of the Environmental and Social Impact Assessment (ESIA) study previously submitted and approved by the Mozambican government. Ncondezi and SEP are targeting submission of the updated ESIA to the Mozambican government during May 2016 and approval is targeted during 3Q16.

Edited from press release by Harleigh Hobbs

GE has completed advanced boiler modernisation projects at the coal-fired plant Elektrárna Pocerady and the coal-fired Melník I power plant, operated by Energotrans, both from CEZ Group. These modifications reduced the power plants’ nitrogen oxide (NOx) emissions by approximately 60%.

“The refurbishment of the Melník I power plant guarantees Prague, Neratovice and Melník reliable long-term deliveries of heat generated in an environmentally sound manner,” said Miroslav Krpec, CEO of Energotrans. “Citizens of Prague and the Central Bohemian Region quickly benefitted from cleaner air as we brought the modernised equipment into operation in stages throughout 2015.”

GE modernised four, 200 MW pulverised coal. The combined value of the upgrade projects was approximately €47 million.

“Over a period of only six days, at the Pocerady power plant we gradually increased the output of each boiler from 130 to 190 MW to ensure everything worked properly. Each boiler passed demanding stress tests and we are very satisfied with the performance of the new equipment and the project execution of the GE team,” said Jirí Kulhánek, CEO of the Elektrárna Pocerady power plant of the CEZ Group.

“We are very proud to have helped our customers significantly improve their environmental performance and local air quality to the benefit of the health of local residents and the wider environment, earlier than required under the European rules.” said Pascal Schweitzer, General Manager of GE’s Power Services business in Europe. “As a result of our acquisition of the former Alstom Power business, GE now has a wider range of smart, proven technologies to reduce power plant emissions and help power producers to meet Europe’s demanding emissions standards.”

Edited from press release by Angharad Lock

Wärtsilä, a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets, is going to join up with an international group of shipping industry companies and organisations in a project to develop a concept for equipping future dry bulk carrier vessels with LNG propulsion.

‘Project Forward’ is led by Athens-based Arista Shipping. It officially commenced in May 2015 with the aim of developing a commercially feasible LNG-powered dry bulk carrier design capable of complying with the International Maritime Organization’s (IMO) Energy Efficiency Design Index 2025 standards, as well as with all relevant emission reduction regulations.

In addition to Arista Shipping, the other parties involved in the project are Finnish ship designer Deltamarin, the Houston based classification society American Bureau of Shipping (ABS) and GTT, the French LNG membrane containment system designer.

The Wärtsilä 31DF dual-fuel engine is likely to form the basis of the concept’s propulsion system. Introduced in June 2015, the Wärtsilä 31 has been recognised by Guinness World Records as being the world’s most efficient 4-stroke diesel engine. It is available in 8 to 16 cylinder configurations and has a power output ranging from 4.2 to 9.8 MW, at 720 and 750 rpm. The DF version allows the use of either LNG or conventional marine fuel oils. While 2-stroke engines are the conventional choice for vessels of this type, the efficiency of the Wärtsilä 31 engine makes it a competitive and viable alternative option.

“Wärtsilä has been selected to participate in this important project because of our depth of experience in LNG propulsion solutions, our strong position in 4-stroke engine technology, and in particular because of the state-of-the-art Wärtsilä 31 engine. This engine has not only taken efficiency to a new benchmark level, but in gas-mode is IMO Tier III compliant without the need for any exhaust cleaning systems. We are proud to be a part of this future-looking project, which could eventually be applied equally well to other types and sizes of merchant vessel,” said Aaron Bresnahan, Vice President, Sales, Wärtsilä Marine Solutions.

Arista Shipping Principal, Alexander P. Panagopulos, added: “Project Forward aims to become a milestone for the shipping industry and in particular for owners and operators of cargo ships. Owners must decide within the next 5-10 years whether gas as fuel is a practical means of compliance with lower emissions standards and this project will enable all of us to understand its feasibility. We welcome Wärtsilä’s involvement, as it is a company with great experience in this field.”

Edited from press release by Harleigh Hobbs