NEWS & TECHNOLOGY FOR THE GLOBAL ENERGY INDUSTRY SINCE 1882
Vol. 169 • No. 3 • March 2025
IS NUCLEAR POWER
A MATCH FOR
DATA CENTERS?
Page 18
Commercial and Industrial Power Systems | 22
Power Market Outlook | 26
Engine-Based Power Plants Provide Flexibility | 30
The AI Control Conundrum | 32
with green hydrogen
from PEM electrolyzers
We’re scaling up production
Producing enough green hydrogen is the key
to decarbonizing businesses that can’t be
directly electrified. Our power-to-X processes
convert renewable electricity and water into
green hydrogen and its derivate net-zero fuels.
Together with our subsidiary H-TEC SYSTEMS
we are mass-producing PEM electrolyzers and
scaling up production of green hydrogen –
moving big things to zero in the energy, heavy
industry, and transport sectors.
www.man-es.com
ON THE COVER
Established 1882 • Vol. 169 • No. 3
March 2025
SPEAKING OF POWER
Trump Energy Policy Changes Signal Major Industry Shifts
in 2025 and Beyond
GLOBAL MONITOR
Zimbabwe Joins Other African Nations in Pursuit of Nuclear Power
THE BIG PICTURE: Power Built with Chinese Capital
China’s Belt and Road Initiative Is Reshaping Global Power Infrastructure
POWER Digest
FOCUS ON O&M
Fighting Corrosion, Scale, and Salt Buildup in Critical Turbines
LEGAL & REGULATORY
Private Equity Weighs Focus as Government Policies Shift
By Megan Ridley-Kaye and Jake Shaner, Hogan Lovells
5
A full-scale prototype of Last Energy’s
PWR-20 nuclear island stands on display. The 22-ton, 48-foot-tall structure
represents the subterranean portion of
the reactor, where critical nuclear components would be housed. Designed for
data centers and industrial applications,
the PWR-20 is a 20-MWe pressurized
water reactor with a closed-cycle air
cooling system, offering a flexible, offgrid baseload power solution. Courtesy:
Last Energy
6
8
9
11
12
16
6
COVER FOCUS: NUCLEAR POWER
The SMR Gamble: Betting on Nuclear to Fuel the Data Center Boom
Nuclear power could be the answer to the question of how to provide the electricity needed for the nation’s buildout of data centers. It also could be just one
piece in the power generation puzzle—albeit one that comes with economic
and regulatory risks.
18
FEATURES:
C&I POWER SYSTEMS
A Business-Like Approach to Power Generation
Businesses depend on a reliable and resilient supply of electricity, and more
commercial and industrial (C&I) operations are building power systems to
generate their own energy. These groups are utilizing a variety of technologies, and working toward sustainability along with other goals such as decarbonization and cost savings.
22
9
POWER MARKETS
AI Boom Reshapes Power Landscape as
Data Centers Drive Historic Demand Growth
The rise of artificial intelligence (AI), and the accompanying need for energy
to supply AI and data centers, brings more challenges for the power generation sector—including a need to rapidly scale up capacity and infrastructure.
CARBON CAPTURE
What Comes Next for Carbon Capture in the Power Industry?
The current state and future prospects of carbon capture and storage (CCS) in
the power industry are examined, covering significant growth in global projects, technological developments, and policy challenges.
|
March 2025 POWER
www.powermag.com
26
28
12
1
DIESEL & GAS ENGINES
Reciprocating Engine Technology Supports
Grid Flexibility and Renewables Integration
Beyond their operational flexibility, reciprocating engines represent a bridge
between traditional and future power generation paradigms. Their operational flexibility, including the ability to run on fuels including natural gas, biogas,
and hydrogen blends, makes them adaptable assets in the transition toward
cleaner energy sources.
30
TECHNOLOGY
22
Generative AI at the Edge: Revolutionizing the
Power Industry’s Control Layer
Artificial intelligence (AI) is reshaping the power industry, and generative AI
(GenAI) is driving even more change. GenAI has the capacity to combine operational diagnostics more effectively and efficiently with advanced pattern
recognition to help deliver better overall visibility of both asset and equipment health, along with process optimization.
MARNIE SURFACEBLOW
Deploying New Technologies May Also Produce New Challenges
Carbon capture systems are being developed to help reduce power emissions,
but the technology remains a work in progress for power plant operators.
COMMENTARY
Powering the Next Electrical Revolution
32
34
40
By Rich Stinson, Southwire
26
FIND THE LATEST POWER NEWS AT POWERMAG.COM
30
CONNECT WITH POWER
If you like POWER magazine, follow
us online for timely industry news
and comments.
ecome our fan at
B
facebook.com/POWERmagazine
ollow us on X
F
@POWERmagazine
J oin the LinkedIn POWER
magazine Group and the Women
in Power Generation Group
2
■P
JM, Facing Capacity Shortage as Early as 2026/2027 Delivery Year, Agrees to
Lower Auction Price Cap
■B
ill Gates’ TerraPower Has Deal to Use Nuclear Power for Data Centers
■N
extEra Eyes Restart of Shuttered Nuclear Plant, Partners with GE Vernova on
Gas Power Expansion
■ I ndia Energy Group Plans ‘World’s Largest’ Data Center
■D
eepSeek Sparks Demand Debate, While Chevron Plans Gas-Fired Plants for Data
Centers
■C
oal Continues to Lead China’s Record Levels of Power Generation
■A
rizona Utilities Announce Effort to Add More In-State Nuclear Power
■T
alen, PJM Reach Agreement to Keep 2 GW of Coal, Oil Generation Online for
Reliability in Maryland
■G
eorgia Power to Keep Coal, Gas Power Plants Running Longer as Demand
Climbs
■T
exas A&M Launches SMR ‘Energy Proving Ground’ with Selection of Four Nu-
clear Firms
■T
VA Taps Bechtel, Sargent & Lundy, and GE Hitachi for Clinch River SMR Nuclear
Project
■U
.S. Coal Plants Get Reprieve as Market and Policies Change
www.powermag.com
|
POWER March 2025
Fast forward to a
clean future
An optimal air emission control solution delivers superior environmental performance
and ensures compliance with emission limits. It also significantly improves the energy
and process efficiency of your production.
To control emissions in the best possible way, both technically and economically, we
at Valmet offer you an unrivaled combination of innovative technology, automation,
and lifecycle services to improve your performance every step of the way.
Explore our wide range of solutions, including dry flue gas cleaning, wet flue gas
cleaning with condensate treatment and heat recovery, NOx control, flue gas
desulfurization, and carbon capture pre-treatment solutions: valmet.com/emissions
NEWS & TECHNOLOGY FOR THE GLOBAL ENERGY INDUSTRY SINCE 1882
EDITORIAL & PRODUCTION
Editorial Director:Dorothy Lozowski, dlozowski@accessintel.com
Executive Editor:Aaron Larson, alarson@accessintel.com
Senior Editor: Sonal Patel, spatel@accessintel.com
Senior Editor: Darrell Proctor, dproctor@accessintel.com
Senior Graphic Designer:Tara Bekman, tzaino@accessintel.com
Senior Production Manager:Joann M. Fato, jfato@accessintel.com
Contributors:James (Jim) E. Holden, PE; Julie Holmquist; Megan Ridley-Kaye;
Jake Shaner; Rick Kephart; Una Nowling, PE; and Rich Stinson
Vice President and Group Publisher,
Energy & Engineering Group: Matthew Grant, 713-343-1882, mattg@powermag.com
Publisher, Sales: Christopher Hartnett, 713-823-8333, chartnett@accessintel.com
ADVERTISING SALES
Western U.S./Canada: Christopher Hartnett, 713-823-8333, chartnett@accessintel.com
Eastern U.S./Canada: Ellen Nyboer, 713-343-1893, enyboer@accessintel.com
Europe: Petra Trautes, +49 172-6606303, ptrautes@accessintel.com
China: Rudy Teng, +86 13818181202, rudy.teng@enlib.com
Japan: Katsuhiro Ishii, +81 3 5691 3335, amskatsu@dream.com
India: Faredoon B. Kuka, 91 22 5570 3081/82, kuka@rmamedia.com
AUDIENCE DEVELOPMENT
Senior Marketing Manager: Jennifer McPhail
Fulfillment Director: George Severine
CUSTOMER SERVICE
For subscriber service: pwr@omeda.com, 847-559-7314
Electronic and Paper Reprints: Wright’s Media, accessintel@wrightsmedia.com, 877-652-5295
List Sales: Anteriad, Danielle Zaborski, dzaborski@anteriad.com, 914-368-1090
All Other Customer Service: 713-343-1887
BUSINESS OFFICE
Access Intelligence, 16225 Park Ten Place, Suite 523, Houston, TX 77084
ACCESS INTELLIGENCE, LLC
9211 Corporate Blvd., 4th Floor, Rockville, MD 20850-3245
301-354-2000 • www.accessintel.com
Chief Executive Officer: Heather Farley
Chief Financial Officer: John B. Sutton
Chief People Officer: Macy L. Fecto
Divisional President, Industry & Infrastructure: Jennifer Schwartz
Senior Vice President, Event Operations: Lori Jenks
Vice President, Corporate Controller: Daniel J. Meyer
Vice President, Production, Digital Media & Design: Michael Kraus
Vice President, Strategic Partnerships: Jonathan Ray
Vice President of Finance: Tina Garrity
Vice President, Administration: Michelle Levy
4
www.powermag.com
Visit POWER on the web: www.powermag.com
Subscribe online at: www.powermag.com/membership
POWER (ISSN 0032-5929) is published monthly, 9 times print
and digital, 3 times digital only, by Access Intelligence, LLC,
9211 Corporate Blvd., 4th Floor, Rockville, MD 20850-3245.
Periodicals Postage Paid at Rockville, MD 20850-4024 and at
additional mailing offices.
Postmaster: Send address changes to POWER, 9211 Corporate
Blvd., 4th Floor, Rockville, MD 20850. Phone: 800-777-5006,
Fax: 301-309-3847, email: clientservices@accessintel.com.
Canadian Post 40612608. Return Undeliverable Canadian
Addresses to: IMEX Global Solutions, P.O. BOX 25542,
London, ON N6C 6B2.
Subscriptions: Available at no charge only for qualified
executives and engineering and supervisory personnel
in electric utilities, independent generating companies,
consulting engineering firms, process industries, and other
manufacturing industries. Subscription request must include
subscriber name, title, and company name. For specific
pricing based on location, please contact Client Services,
clientservices@accessintel.com, Phone: 1-800-777-5006. For
new or renewal orders,call 847-501-7541. Single copy price:
$59. The publisher reserves the right to accept or reject any
order. Allow four to twelve weeks for shipment of the first
issue on subscriptions. Missing issues must be claimed within three months for the U.S. or within six months outside U.S.
For customer service and address changes, call
800-777-5006 or fax 301-309-3847 or e-mail clientservices@
accessintel.com or write to POWER, 9211 Corporate Blvd.,
4th Floor, Rockville, MD 20850. Please include account
number, which appears above name on magazine mailing or
send entire label.
Content Licensing: For all content licensing, permissions,
reprints, or e-prints, please contact Wright’s Media at
accessintel@wrightsmedia.com or 877-652-5295.
General mailing address: POWER, 116225 Park Ten Place,
Suite 523, Houston, TX 77084
Copyright: 2025 Access Intelligence. All rights reserved.
|
POWER March 2025
SPEAKING OF POWER
Trump Energy Policy Changes
Signal Major Industry Shifts
in 2025 and Beyond
Aaron Larson
T
here has been significant outrage
from the left around changes the
Trump administration has made
since taking office, including actions that
specifically affect the power industry.
Yet, it’s not uncommon for an administration to make energy policy changes after
a new president assumes power.
Some Change Is Normal
When Ronald Reagan became president
in 1981, he dramatically reversed Jimmy
Carter’s energy conservation policies.
While Carter had installed solar panels
on the White House and pushed for renewable energy development, Reagan
removed the solar panels and emphasized
deregulation of the energy industry, particularly oil and gas. He also significantly cut
funding for renewable energy research.
The transition from Bill Clinton to
George W. Bush in 2001 marked another
major shift. Clinton had prioritized environmental regulations and supported the
Kyoto Protocol on climate change. Bush
withdrew the U.S. from the Kyoto Protocol and introduced an energy policy that
emphasized increased domestic fossil
fuel production, including controversial
proposals for oil drilling in the Arctic National Wildlife Refuge (ANWR).
A particularly stark contrast occurred
between the Obama and first Trump
administration. Obama introduced the
Clean Power Plan to reduce power plant
emissions and signed the Paris climate
agreement. When Trump took office in
2016, he withdrew from the Paris Agreement, repealed the Clean Power Plan,
and pursued a U.S. “energy dominance”
agenda that expanded fossil fuel development on public lands and rolled back
various environmental regulations.
Trump’s Latest Actions
Of the 46 executive orders (EOs) and other
presidential actions signed by Trump on his
first day back in office, at least six have direct relevance to the energy industry. The
declaration of a “national energy emergency,” is perhaps the most notable. It authorizes the expansion of domestic fossil fuel
|
exploration and extraction, while directing
federal agencies to streamline regulatory
processes and accelerate energy infrastructure projects. The EO uses the term
“energy” to include crude oil, natural gas,
lease condensates, natural gas liquids, refined petroleum products, uranium, coal,
biofuels, geothermal heat, the kinetic
movement of flowing water, and critical
minerals, but notably does not apply to
wind and solar energy or batteries.
A memorandum signed by Trump calling for “Temporary Withdrawal of All Areas on the Outer Continental Shelf from
Offshore Wind Leasing and Review of
the Federal Government’s Leasing and
Permitting Practices for Wind Projects”
is also significant. It prohibits several federal agencies from issuing any new or renewed approvals, rights-of-way, permits,
leases, or loans for onshore or offshore
wind projects pending the administration’s assessment of the economic and
environmental impact of wind leasing
and permitting practices. The order also
requires temporary withdrawal of offshore areas from offshore wind leasing.
Among other actions signed by Trump
are the U.S.’s withdrawal from the Paris
Agreement (again); a catch-all EO on energy, including a wide range of provisions
intended to “unleash America’s affordable
and reliable energy and natural resources”;
an order to lift restrictions on oil, gas, and
mineral production in Alaska, opening areas for development, including parts of the
ANWR, and supporting the state’s aspiration to revive its liquefied natural gas (LNG)
industry; and a mandate for government
departments to look for ways to bring down
prices for consumers, including scrapping
climate policies that raise the cost of fuel.
In addition to these actions, Trump has
toyed with tariffs on imports, which will
impact the energy industry. Some of the
measures covered by Trump’s actions will
have an immediate effect, while others will
take time and could face legal challenges.
Possible Ramifications
Morgan Stanley hosted a series of meetings with several industry associations
and former government officials follow-
March 2025 POWER
www.powermag.com
ing the inauguration to discuss climate
and trade policy. The key takeaways included insight on prospects for the Inflation Reduction Act (IRA), implications
of the tariffs, and outlooks for nuclear
power and natural gas.
“We see a potentially bifurcated outcome with respect to IRA repeal, with
a greater-than-appreciated probability that
the IRA may remain intact,” Morgan
Stanley Research speculated. The group
acknowledged, however, that IRA repeal risk remains a key area of concern
for clean energy investors. “Our base
case for IRA-related spending remains
intact: expect efforts to challenge or delay disbursements through the executive
branch, as well as potentially targeted
repeal efforts/accelerated phase-outs as
Republicans attempt to find offsets for
tax-cut extensions, but broader repeal is a
lower probability event,” the team of analysts, strategists, and researchers said.
Morgan Stanley expects tariffs to
continue being used for leverage to reduce the trade deficit and increase the
competitiveness of U.S. manufacturing.
Meanwhile, the group said there is significant bipartisan support for nuclear
power, as it is viewed as a critical source
of reliable and clean power needed to
support growing energy demand in
the U.S. stemming from artificial intelligence and the onshoring of manufacturing. “The ADVANCE Act, which passed
the Senate by a vote of 88–2, is clear
evidence of this bipartisan support. This
gives us confidence that if there were to
be any changes to the IRA, the nuclear
PTC [production tax credit] would likely
be untouched,” the group said.
Concerning natural gas, Trump lifted
the pause on new Department of Energy
permits for LNG export facilities, easing
the path for new facilities to advance.
“Beyond LNG, the Trump administration
may target a roll-back of greenhouse gas
limits for new and existing power plants,
potentially helping gas to take a larger
share of electricity demand growth,”
Morgan Stanley Research said. ■
—Aaron Larson is POWER’s
executive editor.
5
Zimbabwe Joins Other African
Nations in Pursuit of Nuclear
Power
Officials in Zimbabwe recently said the
country will work with the International Atomic Energy Agency (IAEA), and
likely with investment from Russia, to
develop a nuclear power program in the
country. Zimbabwe is joining other African nations exploring nuclear power
as a way to help solve chronic problems with electricity supply. Demand
for power continues to increase on the
continent due to growing populations
and economic expansion.
The only African country currently producing nuclear energy is South Africa.
The French-built Koeberg plant (Figure
1) near Cape Town, with two Framatome
reactors and just more than 1,800 MW
of generation capacity, has operated
for 40 years. Officials have said Russia
will work on an expansion of that power
station, and possibly on construction of
new reactors elsewhere in the country. Eskom, South Africa’s state power
company, said it re-connected Unit 2 at
Koeberg to the national grid on Dec. 30
of last year after replacing three steam
generators, conducting comprehensive
inspections, and refueling the reactor. A
decision on extending the unit’s operating license is expected this year.
Koeberg Unit 1’s operating license
was renewed last year for another 20
years, to 2044. The Koeberg units, both
pressurized water reactors, have operated since 1984 and 1985, respectively.
Bheki Nxumalo, group executive for generation at Eskom, in a statement said,
“As South Africa phases out some of the
aging coal-fired power plants by 2030,
1. The Koeberg nuclear power station in
South Africa is the only nuclear power plant
on the African continent. Its two units, with
more than 1,800 MW of generation capacity
in total, have operated since the mid-1980s.
Courtesy: Eskom
6
nuclear energy is poised to provide a reliable and stable baseload supply. Unlike
intermittent renewable sources, nuclear
power ensures continuous electricity
generation, meeting the needs of both
residential and industrial users. Its ability to produce carbon-free energy also
supports South Africa’s climate goals by
reducing greenhouse gas emissions.”
Edgar Moyo, minister of Zimbabwe’s
Energy and Power Development, said
his country plans to increase its power
generation capacity to at least 4 GW by
2035, up from the current 2.6 GW, although government data shows actual
daily power generation is about half of
capacity. Moyo said his country will collaborate with Russia on construction of
small nuclear reactors. Moyo in late December told journalists at a meeting in
Harare, Zimbabwe, that the IAEA “have
indicated their willingness to take us
through paces until we get there.” Russia
already has agreements to build nuclear
power plants with Egypt, Nigeria, and
Burkina Faso, in addition to South Africa.
Russian nuclear energy state-owned
company Rosatom and the Ministry of
Energy of the Republic of Zimbabwe in
2021 signed a memorandum of understanding to cooperate on nuclear energy.
Economists and geopolitical analysts
have said Russia wants to take a lead
role in Africa’s energy future to expand
its influence on the continent.
“A reliable nuclear energy infrastructure could supply electricity to millions
of people in rural or underserved areas,”
said Irina Tsukerman, an adviser and foreign policy expert with Scarab Rising, a
U.S.-based geopolitical research group.
“Many African countries still face significant gaps in electricity access, and
nuclear power can help bridge that gap,
particularly in countries with a growing urban population. Nuclear energy
can provide a stable supply for expanding economies, ensuring industries and
households have reliable power without
frequent outages or blackouts, which are
common in many parts of Africa.”
Tsukerman told POWER, “Right now,
South Africa is the only country in Africa
with a nuclear plant, although several
more are being planned. In theory, introduction of nuclear power throughout the
continent could be effective in addressing
power shortages. That’s because nuclear
power has significant advantages over
www.powermag.com
other forms of energy that could work
well, including in developing countries.”
Tsukerman said nuclear power would
benefit Africa because it would provide
“reliable energy production” as well as
“large amounts of energy from relatively
small amounts of fuel. For countries with
limited land or resources, nuclear power
can provide a reliable source of electricity without requiring vast areas of land,
unlike solar or wind energy, which depend on large installations.”
Gloria Magombo, Zimbabwe’s secretary for energy and power development,
during a December 2024 media briefing
said that in addition to nuclear power,
the country also wants to deploy more
renewable energy resources apart from
hydropower, which has been impacted
by drought conditions. Magombo said,
“We are looking at coming in by 2030
with up to about 2,000 megawatts” from
solar, wind, and hydropower resources.
The country has a National Renewable
Energy Program, though officials have
said private investment along with public capital will be needed to support a
build-out. A Renewable Energy Fund
was launched in September of last year.
The U.S. State Department in a report
last year said, “Debt significantly hinders Zimbabwe’s economic growth and
development,” noting the country “owes
over $9 billion [$7.0 billion of which is in
arrears and penalties] to international
financial institutions and bilateral creditors, equating to about 33% of the country’s GDP [gross domestic product].”
Dr. Lisa Marshall, president of the
American Nuclear Society, and Dr. Sola
Talabi, president of Pittsburgh Technical,
a nuclear power consulting firm, told
POWER that nuclear power would offer
reliable baseload power for Zimbabwe
and other African nations, and serve as a
complement to other sources of energy
while promoting foreign investment. The
two noted that with “population growth
and socio-economic needs, what nuclear
energy brings to the table is an energy
course that can be coupled with district
heating [providing higher efficiencies and
better pollution control than localized
boilers, for instance], as well as the potential of radioisotopes for medical diagnosis and treatment.”
The two said that the World Bank
Group categorizes Zimbabwe as a “lower middle-income country with strong
|
POWER March 2025
GLOBAL MONITOR
human and natural capital and significant
growth potential. Building on its highly
educated workforce, abundant natural
resources, and recent advances in economic policy, together with key structural and institutional reforms, Zimbabwe
could achieve steady and rapid growth
and move towards an upper middleincome country status, which the Government of Zimbabwe has targeted for
2030.” They noted that the “simplified
and decentralized infrastructure of advanced reactors make them very attractive to emerging markets where large
infrastructure deployment is very challenging. For example, a microreactor can
be deployed within days, thereby providing immediate power.”
Tsukerman agreed that nuclear power
would be a way to attract foreign investment to Africa. “Nuclear power projects,
due to their size and complexity, can attract foreign investments, boosting economic development and infrastructure
in the surrounding regions,” she said.
“Building and maintaining nuclear power
plants requires skilled labor, including
engineers, technicians, and construction
workers. This can help boost local econo-
mies and create long-term employment.”
Tsukerman also noted that nuclear power could help lower or even eliminate some
African countries reliance on imported oil,
natural gas, and coal for power generation.
“Nuclear power can help reduce this reliance, enhancing energy security and ensuring a more stable energy supply,” she
said. Tsukerman also noted that “Africa has
significant uranium reserves, and mining it
for nuclear power could provide a domestic source of fuel. Countries like Namibia,
Niger, and South Africa have the potential
to harness this resource.”
Marshall and Talabi said there would
be a connection between Zimbabwe’s
mining industry and its increased interest in nuclear power, saying that advanced reactors and microreactors have
the potential to decarbonize the mining
sector. They said that advanced reactors
can provide reliable, low-carbon heat
and electricity for mining operations,
replacing traditional fossil fuel-based
energy sources. This would help reduce
greenhouse gas emissions and support
climate goals. The two also noted that
many of the country’s mining operations
are located in remote areas where ac-
cess to the grid is limited. They said that
microreactors “can be readily deployed
in these off-grid locations to provide a
stable power supply, reducing reliance
on diesel generators.” Talabi and Marshall
said that the country’s “mining sector is
essential for the clean energy transition,
as it supplies critical minerals like lithium,
cobalt, and rare earth elements needed
for renewable energy technologies. Microreactors can enable sustainable and
cost-effective mining of these minerals.”
Whether U.S. companies, particularly
those in the nuclear power space, would
invest in Zimbabwe is questionable. The
U.S. government ended its Zimbabwe
Sanctions Program in March of last year,
but continues to monitor individuals and
companies under its Global Magnitsky
Human Rights Accountability Act, or GloMag, part of the Treasury Department’s
Office of Foreign Assets Control. Officials
in the U.S. and other countries, including
the UK, have cited corruption, political instability, and the country’s high levels of
debt as reasons to be wary of investment.
Tsukerman noted the economic issues in Zimbabwe and other African
countries are also a factor. “A downside
The Perfect Partner
for Your Hydrogen Project
The
of Energy
NEUMAN & ESSER is the preferred provider
for integrated hydrogen solutions.Get the
entire technology as well as consulting,
feasibility and implementation from a single
source.
Hydrogen is essential for the energy transition, enabling
decarbonization in industries, transport, and energy. Its value
chain spans generation, storage, transport, and application.
Green hydrogen, made with renewables, boosts sustainability,
while investments in infrastructure drive innovation and
economic growth.
|
March 2025 POWER
www.powermag.com
Discover our interactive
application and immerse yourself
in the fascinating world of the
hydrogen value chain.
https://h-of.energy
7
GLOBAL MONITOR
THE BIG PICTURE:
Power Built with Chinese Capital
Capacity (MW) by
Status 2000–2032
Capacity (MW) by
Technology
CO2 Emissions
(K Ton)
by Technology
1 | ASIA: 89,588 MW
289,032 K Ton
51%
In Operation
55,307 MW
19%
21%
17%
Hydropower
19,206 MW
Nuclear
3,295 MW
3%
Solar
2,255 MW
1%
Oil
1,729 MW
Wind
603 MW
0%
Waste
72 MW
61%
Hydropower
20,567 MW
15%
Gas
5,052 MW
13%
Wind
4,271 MW
7%
Solar
2,285 MW
2%
Biomass
703 MW
1%
1%
Oil 411 MW
Coal 356 MW
0%
Geothermal
20 MW
42%
Coal
10,550 MW
38%
Hydropower
9,476 MW
14%
Gas
3,625 MW
2%
Wind
620 MW
2%
Oil 417 MW
1%
Solar
342 MW
34%
Nuclear
5,840 MW
32%
Gas
5,477 MW
22%
Wind
3,776 MW
8%
Solar
1,368 MW
2%
1%
Coal 350 MW
Oil 152 MW
0%
Geothermal
63 MW
0%
Hydropower
40 MW
52%
Wind
3,265 MW
21%
Solar
1,339 MW
14%
10%
2%
Coal 885 MW
Gas 630 MW
Hydropower
124 MW
2 | AMERICAS: 33,666 MW
In Operation
27,552 MW
82%
Under Construction
3,311 MW
10%
Under Planning
2,802 MW
8%
3 | AFRICA: 25,031 MW
In Operation
17,212 MW
69%
Under Construction
6,112 MW
24%
Under Planning
1,707 MW
7%
4 | EUROPE: 17,066 MW
In Operation
9,729 MW
Under Construction
4,360 MW
Under Planning
2,978 MW
57%
26%
17%
5 | OCEANIA: 6,244 MW
8
Coal
In Operation
3,715 MW
59%
Under Planning
1,799 MW
29%
Under Construction
730 MW
12%
AFRICA 23%
www.powermag.com
83%
OCEANIA 2%
EUROPE 1%
AMERICAS 1%
Gas
16,845 MW
4%
2%
Under Planning
15,058 MW
ASIA 74%
62%
21%
Under Construction
19,224 MW
Coal
45,584 MW
57,210 K Ton
ASIA 57%
EUROPE 16%
AMERICAS 14%
AFRICA 12%
OCEANIA 2%
Gas
16%
3,805 K Ton
ASIA 60%
AFRICA 19%
AMERICAS 14%
EUROPE 6%
Oil
1%
The China Global Power (CGP)
Database, developed by
Boston University’s Global
Development Policy Center,
systematically tracks power
plants outside of China that
are financed through Chinese
foreign direct investment and
its two major policy
banks—the China Development Bank and the Export-Import Bank of China. As of
mid-2022, China-backed
investments supported 648
power plants across 171.6 GW
of total generation capacity
worldwide. Visualized here are
projected power generation
capacity and associated
emissions by 2033 across
Africa, the Americas, Asia,
Europe, and Oceania.
Source: Boston University
Global Development Policy
Center. —Sonal Patel is a
POWER senior editor.
|
POWER March 2025
GLOBAL MONITOR
2. Officials in Ghana, along with U.S.-based Regnum Technology
Group, last year reached an agreement to deploy a NuScale VOYGR-12
small modular reactor in Ghana. Courtesy: NuScale Power
of the U.S. reactors is that they tend to be more expensive than
the Russian and Chinese technologies, they are limited in scale
and size, and so more would need to be purchased to serve
communities,” she said, noting the U.S. “has yet to negotiate
agreements with many of these countries, which in itself could
be a monumental task given an anti-Western trend, particularly
in West Africa, on the one hand, and the aggressive entry of
other actors, such as Russia and China, on the other. Moreover,
the U.S. has strict anti-corruption laws, which complicate bidding for tenders in countries with a different business culture,
and many of the U.S. companies are reluctant to engage anywhere with an apparent high business risk.”
India is another country working to make inroads in Africa.
“India currently is at the forefront of building thorium reactors,”
said Tsukerman. “According to plan, 30% of the Indian electricity in 2050 will be generated from thorium-based reactors. India
is also a growing power throughout Africa, striving to compete
with China and to expand its own geopolitical and economic
reach. It has no shortage of workforce or engineers, and its
work would be cheaper than U.S. or European implementation.
However, so far India has not applied power plant outreach to
its economic programs in Africa, and also struggles with modernizing its own business culture and implementation, focusing on exports of raw materials for the time being.”
There is some U.S. investment for nuclear technology in
Africa. At the U.S.-Africa Nuclear Energy Summit in Nairobi,
Kenya, last year, Nuclear Power Ghana and U.S. nuclear technology project developer Regnum Technology Group reached
an agreement to deploy a single NuScale VOYGR-12 (Figure
2) small modular reactor (SMR) facility in Ghana. Their goal is
to own and operate the continent’s first commercial advanced
light-water SMR plant.
“Of course, whether the Western powers decide to compete
with the Russian and Chinese variants depends a lot on the
terms they can negotiate,” said Tsukerman. She said that Japan,
“which is making slow headways in the more-developed African
countries like Kenya, could be well-positioned to provide a viable
alternative to Russia and China in the nuclear sector.”
—Darrell Proctor is a senior editor for POWER.
China’s Belt and Road Initiative Is Reshaping Global
Power Infrastructure
Since 2013, when China launched its Belt and Road Initiative (BRI), interest in the measure has been sharply divided.
Proponents in Beijing and across the Global South view the
BRI as a transformational platform for economic cooperation
that delivers much-needed infrastructure, energy security,
and industrial modernization to developing nations. Parts of
|
the West view it more skeptically, framing it as a geopolitical
tool or an expansive strategy designed to extend China’s economic and political influence through debt-laden projects and
strategic energy investments.
What is clear is that the BRI has made rapid gains in helping developing economies bulk up on energy infrastructure. In
January, Wood Mackenzie noted that Chinese companies have
installed 156 GW of power projects in participating countries
since the BRI’s launch (Figure 3). “Between 2013 to 2024,
these companies completed 369 overseas power projects,
representing an investment of approximately US$281 billion,”
said Yanqi Cao, managing consultant, Asia Pacific power research at Wood Mackenzie.
The bulk of these projects—70%—have been based in Asia,
followed by Africa at 15%, Wood Mackenzie reported. “The
top five [BIR] markets—Pakistan, Indonesia, Vietnam, Saudi
Arabia, and Malaysia—are expected to see substantial growth
in wind and solar installations over the next decade, with a
projected 120 GW requiring an investment of US$73 billion,” it
said. “Among these nations, Saudi Arabia is projected to have
the highest demand, with plans to install 41 GW of solar power
and 13 GW of wind power.”
According to Boston University’s China’s Global Power Database, if Chinese foreign direct investment (FDI) and investment from China’s two policy banks—the China Development
Bank and the Export-Import Bank of China—are considered,
the number of power projects China has supported outside
its borders ramps up dramatically. “As of mid-2022, Chinese
capital has supported 648 power plants overseas, representing
1,423 individual power generating1 units
providing
a total
KeepRunning_3_75x4_75.qxp_Layout
6/29/21
10:56 AM
Pageof1
Run Dry and
Keep on Running
Pumps fitted with
GRAPHALLOY® wear
parts survive upsets.
•
•
•
•
•
•
•
Self-lubricating
Non-galling
Won’t swell
Corrosion resistant
Dimensionally stable
Improved efficiencies
-400˚F to 1000˚F (-240˚C to 535˚C)
GRAPHITE METALLIZING
CORPORATION
Yonkers, NY USA
+1.914.968.8400 • www.GRAPHALLOY.com
March 2025 POWER
www.powermag.com
9
GLOBAL MONITOR
3. China’s Belt and Road Initiative (BRI) spans
over 140 countries, cutting across Asia, Africa,
the Middle East, and Latin America. The U.S.
Government Accountability Office (GAO) estimates China has committed $679 billion in
global infrastructure financing under the BRI—
far surpassing the $76 billion invested by the
U.S. during the same period. Source: GAO
171.6 GW of power generation capacity,”
it says. “Among these power plants, Chinese capital participation includes FDI
in the form of greenfield investments
or mergers and acquisitions (M&A), and
debt finance,” it explains.
To delve deeper into why the BRI has
flourished so rapidly over its decadelong existence, it helps to understand
what the BRI is and how it has evolved
into a major global power play. As Beijing-based think tank Xinhua Institute
explains, when President Xi Jinping announced the measure, it was framed as
a modern-day revival of the ancient Silk
Road—an extensive network of trade
routes that historically connected China
to Europe, the Middle East, and Africa.
Its core mission was to promote global
trade, infrastructure expansion, and economic cooperation, particularly in developing nations that lacked the financial
capacity to modernize their economies.
Initially, the BRI primarily focused on
transportation and logistics for enhanced
connectivity, including financing largescale projects such as ports, highways,
and railways. In recent years, its scope
has expanded to include energy development, digital infrastructure, and industrial growth. At the Third Belt and Road
Forum for International Cooperation in
2023, President Xi Jinping introduced
the “Eight Major Steps,” a policy framework that seeks to enhance BRI investments by expanding clean energy and
low-carbon development. Essentially, it
prioritizes “small and beautiful” projects
with greater social benefits.
A key pillar is the “Green Silk Road,”
which reflects Beijing’s concerted focus
on solar, wind, hydro, and grid modernization. Chinese firms, backed by
state-owned banks, have quickly gained
traction in global clean energy supply
chains. Today, China is the largest supplier of solar panels, wind turbines, and
10
lithium-ion batteries. The policy framework, meanwhile, strengthens the
“Digital Silk Road,” which is focused
on expanding China’s global influence
in digital infrastructure through artificial
intelligence (AI), smart grids, 5G networks, cloud computing, and data-driven energy solutions.
Among the many major power infrastructure projects completed under the
BRI in recent years are the 3,444-MW
Ilha Solteira Hydropower Plant in Brazil (Figure 4), a project that is majorityowned by China Three Gorges Corp., and
the 2,290-MW Karachi Coastal Nuclear
Plant in Pakistan, which was financed by
China Exim Bank. In Indonesia, Shenhua
Group developed the 2,100-MW PLTU
Jawa 7 coal plant, while Harbin Electric
built the 2,400-MW Hassyan gas plant in
the United Arab Emirates (UAE). In Sweden, China General Nuclear Power Group
holds a 75% stake in the 644-MW Markbygden Wind Farm, one of the nation’s
largest wind farms.
Under the more recent “Green Silk
Road” initiative, the 950-MW Maktoum
Solar Park Phase IV in Dubai became
fully operational in February 2024, spearheaded by a China-UAE collaboration.
Chinese firms last year also put online
Côte d’Ivoire’s 112.9-MW Gribo-Popoli
Hydropower Station and the 600-MW
Karuma Hydropower Station in Uganda.
“Chinese companies are more and
more involved in investing in renewable
power in the top five [BRI] markets,”
said Cao. “Five years ago, they accounted for only 7% of the wind and solar capacity in these markets. However, this
share has risen to over 60% in 2024,
and it could reach 80% by 2030, if the
current trend continues.”
As the U.S. Government Accountability Office (GAO) explains, the BRI is
a state-backed financing model, which
relies heavily on loans and direct investments from Chinese financial institutions
such as the China Development Bank
(CDB) and the Export-Import Bank of China (EXIM Bank). The banks provide longterm, low-interest loans to BRI partner
countries to allow them to fund largescale infrastructure projects that could
otherwise be financially unfeasible.
However, unlike traditional foreign aid
models, BRI projects are often executed through engineering, procurement,
and construction (EPC) contracts—an
approach that ensures Chinese stateowned enterprises (SOEs) maintain direct control over key aspects of project
development, from construction to opwww.powermag.com
eration. It means that, often, even when
a project is in a partner country, Chinese
companies own, manage, and profit
from its operations.
That aspect has drawn controversy.
Supporters argue that the BRI fills critical infrastructure gaps in developing
economies, particularly in sub-Saharan
Africa, South Asia, and Latin America,
where Western financing has historically
been insufficient or slow-moving. China,
notably, points out that its efforts to provide immediate capital for power plants
and other infrastructure has helped unlock economic growth opportunities for
developing countries. That holds true
in Africa. While 80% of the 685 million
people without electricity live in subSaharan Africa, China has emerged as
a key infrastructure partner, investing in
solar power, microgrids, and school and
healthcare facilities’ electrification. Challenges persist: As the World Research
Institute points out, electricity consumption still remains critically low due to high
costs, limited industrial development,
and financial constraints.
Critics—among them the U.S. government—warn of financial risks associated
with BRI loans, cautioning “debt-trap
diplomacy” could overburden countries
with Chinese debt and ultimately force
them to cede strategic assets as collateral. The GAO points out that 31 of the
36 nations most at risk of debt distress
are BRI participants. However, beyond
debt concerns, some Western analysts
are concerned that the BRI is furnishing
China with long-term economic, political,
and geopolitical influence. As a major energy and digital infrastructure provider,
China is positioned to shape the rules of
global economic engagement—albeit in
4. The 3,444-MW Ilha Solteira Hydropower
Station, one of Brazil’s largest hydroelectric
plants, is located on the Paraná River at the
junction of São Paulo and Mato Grosso do Sul.
The plant, modernized by Sinohydro Bureau
11 Co., a subsidiary of POWERCHINA, underwent a major technological upgrade, with
Unit No. 20 completing water commissioning
and beginning operation in December 2020. It
features 20 Francis turbines. Courtesy: POWERCHINA
|
POWER March 2025
GLOBAL MONITOR
ways that could undermine (or leave out)
Western interests, the GAO writes.
The concern rests on the country’s
growing influence over energy supply
chains, project financing, and equipment
and services. Some projects also open
new opportunities for Chinese firms to
embed digital solutions, such as AI-driven energy management solutions, into
energy infrastructure, raising new questions about China’s influence and control
of energy data.
For now, China appears to have assumed the role of the primary architect
of energy systems across the developing world, and it has moved concertedly to provide assurance that it plans to
work collaboratively to deliver progress.
The BRI is “not a modernization that
China seeks to achieve in isolation, but
rather one that aims for joint modernization with other developing countries and
the world at large,” writes Xinhua Institute. The unilateral endeavor is a shared
responsibility where all parties benefit
equally, it argues.
“Without shared growth and prosperity, true global peace and stability cannot
be achieved, and the results of global
modernization will be difficult to sustain,”
it says. “In the face of widening global
gaps between the Global North and
South, increasing challenges for developing countries to catch up, and worsening
income inequality within nations, the BRI
offers a realistic path to modernization
for developing nations. The BRI reflects
China’s deep understanding and unique
perspective on modernization, encompassing not only material improvements
but also comprehensive social progress.”
—Sonal Patel is a senior editor
for POWER.
POWER Digest
Major Solar-Plus-Storage Project Announced in Middle East. A solar-plus-
storage project that could provide
gigawatts of generation capacity was
unveiled in January during Abu Dhabi
Sustainability Week (ADSW). Dr. Sultan
Al Jaber, minister of industry and advanced technology for the United Arab
Emirates (UAE) and chairman of stateowned renewables company Masdar,
announced plans for the renewable energy power station plant at the opening
ceremony of ADSW. The project would
include 5.2 GW of solar photovoltaic
generation with 19 GWh of battery energy storage capacity, which Al Jaber
said would enable the plant to provide
as much as 1 GW of baseload power on
|
a continuous basis. The project will be
based in Abu Dhabi, though the specific
location was not announced. The installation will be delivered by Masdar and
the state electricity and water procurement and supply entity Emirates Water
& Electricity Co. with partners.
Wärtsilä Engines Will Power Kazakhstan Power Plant. Technology group
Wärtsilä said it will supply the engineered
equipment for a new 120-MW power plant
under construction in Kazakhstan. The order announced in January was placed by
Kazakhstan Caspian Offshore Industries (KCOI) and booked by Wärtsilä in
late 2024. The order includes six Wärtsilä
46TS-SG gas-fueled large bore engines,
as well as mechanical and electrical auxiliary equipment. KCOI is the main contractor for the development of a major hybrid
power project in the Mangystau region,
which in addition to the engine power
plant will include a 77-MW wind power
plant and a 50-MW solar power plant. The
project once commissioned will supply
electricity to oil and gas exploration facilities in the region. Mirko Borghesi, CEO of
KCOI, said it will be the first hybrid project
of its type to be implemented in Kazakhstan. Delivery of the Wärtsilä equipment is
scheduled by the end of this year, and the
project is expected to be fully operational
by the middle of next year.
BESS Project Under Construction in
Germany. France-headquartered Neoen,
an independent power producer (IPP),
in January said the company has started
construction work on a 45-MW/90-MWh
battery energy storage system (BESS)
project in Saxony-Anhalt, Germany. The
installation is scheduled to enter commercial operation next year. The Arneburg
Battery project is the first BESS installation for Neoen in Germany. The IPP will
own 100% of the Arneburg Battery, and
will also operate the project. Arneburg will
participate in both intraday power trading
and balancing services. Neoen said it has
a “robust” pipeline of projects in Germany, with more than 1 GW of generation capacity at various stages of development.
The company, which is set to be acquired
by infrastructure investor Brookfield, has
a global generation portfolio in operation
or under construction of about 2.3 GW,
with 5.3 GWh of energy storage. Neoen
said it also is building the 93.9-MW Isbillen
Power Reserve BESS project in Sweden,
and the 56.4-MW BESS Yllikkälä Power
Reserve Two project in Finland.
Major Pumped Storage Project Comes
Online in China. Chinese officials in Janu-
ary said the Fengning Pumped Storage
March 2025 POWER
www.powermag.com
Power Station began commercial operation on Dec. 31, 2024. Officials said it is
the largest pumped storage facility in the
world and includes 12 reversible pumpturbine units, each with a capacity of
300 MW, including two variable-speed
units, bringing the total installed capacity to 3.6 GW. It is designed to generate 6.61 TWh annually while consuming
8.71 TWh of electricity for pumping. It is
connected to the North China power grid
via four 500-kV transmission lines. The
facility is located in Fengning County,
Hebei Province, near Beijing and Tianjin,
and in proximity to the 10-GW wind and
solar power complex in Zhangjiakou. The
storage project was developed by State
Grid Xinyuan Group Co., a subsidiary
of the State Grid Corp. of China. Officials said construction of the project took
more than 11 years after starting in May
2013, and represents an investment of
about $2.6 billion.
Valmet Modernizing Heating Plant
in Czech Republic. Valmet in late Janu-
ary said the company will support the
modernization of ŠKO-ENERGO’s heating plant in Mladá Boleslav, Czech Republic. The project includes converting
two existing circulating fluidized bed
(CFB) boilers from coal to biomass and
delivering a new bubbling fluidized bed
(BFB) boiler. The order also includes a
flue gas cleaning system for the new
boiler and modifications to the flue gas
cleaning systems of the upgraded boilers. Valmet said that the new BFB boiler
will compensate for the reduced capacity
from the converted CFB boilers. The new
boiler will work alongside the retrofitted
equipment. Officials said the CFB boilers
will burn a biomass mix of wood chips
and agro-biomass pellets. The Mladá
Boleslav plant supplies power to Škoda
Auto’s manufacturing facilities, and provides heat for the town. ŠKO-ENERGO
called the project a significant milestone
in the company’s efforts toward decarbonization. The project is expected to be
completed by year-end 2027, with work
done consecutively across a two-year
time frame to ensure that the heat and
power supply to the car manufacturing
facility can continue without interruption.
The new Valmet BFB will produce steam
at a rate of 80 tons per hour using wood
chips as fuel. The rebuilt CFBs, which delivered 140 tons of steam per hour when
burning coal, will have a new capacity
of 100 tons of steam per hour burning
wood chips and biomass pellets. ■
—Darrell Proctor is a senior editor
for POWER.
11
O&M
Fighting Corrosion, Scale,
and Salt Buildup in Critical
Turbines
Turbines play an integral role in power
production, turning steam into mechanical energy that generates electricity. Though large and powerful,
these dynamic pieces of equipment
are also vulnerable and must be kept in
pristine condition for efficient service
and longevity.
Unfortunately, some power plant environments set turbines up for failure.
Warm, humid sea air leaves behind
salt deposits or flash rust (Figure 1)
on turbines at coastal power plants.
Harsh steam carrying hydrogen sulfide,
or H2S, and minerals from the ground
wreaks havoc on equipment at geothermal plants.
When working with turbines in these
environments—or really any situation
where a turbine may be temporarily offline—it is important for power plant
workers to have simple strategies to
remove buildup, prevent flash rust, and
keep idle turbines in peak operating condition to maximize efficiency and uptime.
Hang on for the Rough Ride: The
Need for Deeper Cleaning
Any type of buildup on turbine blades
can upset the equilibrium of the power generation process. Whether that
imbalance is caused by salt, scale, or
rust, it is critical to remove the buildup
for efficient operation and maximum
service life.
In one case, a Turkish power plant located in a coastal environment was having trouble with salt buildup on turbine
blades. This threw the turbine out of balance, creating an unacceptable increase
in vibration that significantly decreased
efficiency and power output.
Scale can cause the same problems
and is a greater concern in geothermal
power plants because of the high mineral content that can accelerate scale
buildup. Some geothermal systems
feed steam directly from the ground into
the turbine, creating a perfect recipe for
scale formation that gradually increases
vibration levels and decreases power
output as calcium carbonate or other
mineral deposits thicken on the blades.
Corrosion also reduces turbine efficiency and service life. Worse yet, cor12
1. These images show flash rust on a turbine after initial cleaning attempts, before the use of
a stronger rust removal agent. Courtesy: Cortec
rosion products threaten to fall off and
contaminate the delicate system, causing further operational problems. Once
begun, corrosion spreads more easily,
accelerating turbine deterioration. It is
important to stop this progression early;
the loss of too much metal cross section puts increased stress on the turbine (especially the turbine flow path),
ultimately leading to failure and shortened service life.
In each of these cases, cleaning away
unwanted buildup is integral to restoring balance and maximizing efficiency
and service life. While many methods
exist, biobased removers and cleaners
are of special interest for maintenance
managers who value sustainability.
For chloride removal, workers can
turn to FlashCorr VpCI, a cleaning agent
that contains 64% U.S. Department of
Agriculture (USDA)–certified biobased
content. This chemistry is designed to
neutralize and remove salt deposits
harsher scale remover chemicals such
as muriatic acid.
For rust removal, VpCI-423 (which
contains 91% USDA-certified biobased
content) can be applied to corroded
areas and removed with VpCI-414, an
alkaline cleaning solution that neutralizes the acid and leaves behind flash
corrosion inhibitors. VpCI-423 should
be left on for shorter or longer periods
depending on the severity of the rust.
For treatment longer than 20 to 30 minutes, workers should cover VpCI-423
with plastic wrap to keep the gel from
drying out.
Warding Off Rust During
Maintenance
Interestingly, although scale and salt
can build up during operation, most
turbines do not rust while in service because of the extreme heat and velocity
of the steam. (One exception is the last
two rows of turbine blades in the low-
It is important for power plant workers
to have simple strategies to remove
buildup, prevent flash rust, and keep idle
turbines in peak operating condition.
from metal surfaces, also protecting
against flash rust.
EcoClean Biodegradable Scale and
Rust Remover Powered by Nano-VpCI
can (as its name implies) be used to remove scale. This formula contains 100%
USDA-certified biobased content and
is more worker-friendly compared to
www.powermag.com
pressure, or LP, turbine, especially at nuclear power plants. These last rows run
very cold and are therefore at risk for
condensation corrosion even during operation.) Typically, the risk of corrosion
increases when turbines are shut down
for maintenance or layup. Since flash
rust can appear overnight, a good habit
|
POWER March 2025
Read this case study at www.MDAturbines.com/Pad
MD&A experts performed a generator life extension project. The complete 7A6
generator isomode pad replacement included a stator rewind, field exchange, and
removing and reinstalling the totally enclosed water-to-air cooled (TEWAC) assembly.
MD&A is your full-service, OEM-alternative!
MD&A’s Generator Division
3804 Weber Road | St. Louis, MO 63125
Ph: +1 (314) 880-3000 | www.MDAturbines.com
Follow Us!
/MD&A
MDAturbines
SERVICES | PARTS | REPAIRS
MD&A Turbines
FOCUS ON O&M
2. These images show turbines after being cleaned with rust removal and corrosion protection agents. In each case, the turbine was treated
using VpCI-422, VpCI-414, and ElectriCorr VpCI-239. Courtesy: Cortec
is to spray turbines with a light coating
of rust preventative at the end of each
day’s maintenance work.
ElectriCorr VpCI-239 (Figure 2) has
become a favorite for many because
of its versatility. Not only does it offer a
quick layer of corrosion protection, but
it also doubles as a cleaner that can be
used to remove light rust or grime before spraying on the final layer of protection and leaving it to dry. Once the
turbine is started, the heat and moisture
of the steam environment will rinse the
coating away in about 30 seconds without system interference.
ElectriCorr VpCI-239 proved to be
a lifesaver for the Turkish power plant
mentioned above. Initially, the problem
was salt buildup on the rotor, so workers took the turbine out of the casing
and blasted off the salt following original equipment manufacturer (OEM)
recommendations.
However, by the time they were
ready to return the turbine to the casing, the turbine had rusted, requiring
another cleaning. The same problem
happened several times because of
the high-chloride, moisture-laden environment. Neither the suggestions of
the OEM nor the project’s architectural
engineering group worked. They simply were not able to find a way to keep
the rust off. Finally, they consulted an
expert at Cortec who had seen similar
problems.
Following his recommendations,
they used VpCI-422 (a less-viscous version of VpCI-423) for rust removal and
VpCI-414 (diluted) for rinsing, neutralization, and flash rust prevention. Once
the surface was dry, they sprayed it
with ElectriCorr VpCI-239. Because
of the previous difficulties, the facility
manager insisted workers leave the
turbine on the laydown deck for a week
to make sure it stayed rust-free. Only
14
then did they install it, finally satisfied
with a solution that met their needs.
Keeping Turbines Pristine During
Layup
In addition to protection during shortterm maintenance, turbines need longterm preservation during extended
layup. This applies both to the routine
ongoing layup of critical spares, as well
as the periodic layup of primary assets
when the entire power plant faces a
shutdown. The vulnerability of turbines
to corrosion at these times makes ef-
Unlike nitrogen blanketing, which will
completely fail if pressure is not maintained, vapor phase corrosion inhibitors
will replenish their corrosion-inhibiting
layer for ongoing protection even if the
enclosure is briefly opened. If the turbine
rotor is not in a casing, it can be shrouded in vapor phase corrosion inhibiting
shrink film to trap the corrosion inhibiting
vapors within the package.
The oil system may be protected by
applying a corrosion inhibitor such as
M-535, an ashless chemistry, to the lubricating oil and circulating it through
Vapor phase corrosion inhibitors will
replenish their corrosion-inhibiting layer
for ongoing protection even if the
enclosure is briefly opened.
fective rust prevention imperative, while
their critical nature makes it important
to choose a method that will allow for
speedy de-preservation and startup to
minimize downtime.
Often, a full plant shutdown lasts several years, but occasionally a plant may
shut down for three to six months to replace large pieces of equipment. Workers laying up a rotor for just a few months
can again turn to ElectriCorr VpCI-239 for
protection of the rotor, blades, shaft, and
casing applied at the time of inspection.
For longer periods, workers should fog
a vapor phase corrosion inhibitor inside
the turbine casing to protect the flow
path. The advantage of this chemistry is
vapor diffusion, allowing corrosion inhibitors to spread throughout the enclosure
and form a molecular protective layer on
all surfaces—not just those to which the
product is directly applied.
www.powermag.com
the system before shutdown. M-535
contains vapor phase corrosion inhibitors, which as mentioned do not need
to be applied directly to each surface to
achieve protection.
Turbines are integral power plant
assets that can experience setbacks
from salt, scale, and corrosion buildup.
Knowing when and how to clean and
preserve them can play a critical role
in effective maintenance and efficient
operation. By removing buildup, warding off rust during maintenance, and
keeping turbines in pristine condition
during layup, power plants will be better equipped to stay mission-ready in
even the harshest conditions. ■
—James (Jim) E. Holden, PE is the
engineering and technical sales
director at CGS (www.cortecgs.com).
Julie Holmquist is a content writer at
Cortec Corp. (www.cortecvci.com).
|
POWER March 2025
MATLAB
FOR AI
Boost system design and simulation with explainable and
scalable AI. With MATLAB and Simulink, you can easily train
and deploy AI models.
© The MathWorks, Inc.
mathworks.com/ai
LEGAL & REGULATORY
Private Equity Weighs
Focus as Government
Policies Shift
Megan Ridley-Kaye and Jake Shaner
A
s the new administration begins implementing its energy policy agenda, the market is keenly anticipating the
impact on private equity sponsors’ energy transition investments. President Trump has signaled his desire to prioritize
oil and gas extraction, and private equity appears well-suited to
take advantage: dry powder remains ample, interest rates are
beginning to decline, and general deal-making regulatory barriers are expected to loosen.
Although sponsors will undoubtedly increase investment in
hydrocarbon energy assets, we nevertheless expect private
equity to continue as a strong partner in the energy transition.
We think it is likely that private equity will continue investment
in the energy transition, but will focus on projects that are resilient to shifting policies on energy transition.
Investments in Infrastructure Likely to Continue
In particular, we expect significant capital deployed toward energy infrastructure—midstream services, pipelines, terminals,
and technology investments (including power transmission and
distribution infrastructure)—as many of these investments can
toggle to energy transition under a different administration.
Such investments would be a continuation rather than a course
correction. The energy transition has made significant strides in
both the private and public sector, due in substantial part to investments in energy infrastructure by private equity sponsors.
We see a number of factors that may restrain the “drill, baby,
drill” mentality within private equity going forward.
The expected increase in power demand due to data centers, electric vehicles, 5G, cryptocurrency mining, and artificial intelligence means there will be plentiful opportunities for
investment in new power infrastructure, as well as upgrades
to existing power infrastructure. Executing on the build-out required to satisfy the ever-increasing demand for reliable power
will require private sector funds. Given sponsors have made
multi-billion dollars commitments to power infrastructure investments, it is unlikely they will change course on what they
see as a long-term play.
Ample Funding for Energy Transition Investments
Sponsors are generally obligated to deploy capital raised for
a fund in a way that aligns with the mandate of that fund.
A lot of funds have been raised for energy transition investments. In 2021 alone, total fundraising for energy infrastructure skyrocketed to $110.1 billion (from $328.5 billion during
the entire first Trump administration), a trend that continued
in 2022 and 2023 with total fund raises of $123.1 billion and
$114.7 billion, respectively.
This expansion coincided with an uptick in the funds raised
expressly for energy transition investments, with those funds
raising $41.4 billion, $35.4 billion, and $52 billion in each of 2021,
16
2022, and 2023, respectively (that is, 37.02% of total funds
raised). With at least $100 billion in funds that cannot be used
for traditional oil and gas investments, sponsors will need to
look elsewhere for the capital to make those investments—this
is where dry powder in general infrastructure funds may come
into play. Even with a more oil- and gas-friendly administration in
D.C., sponsors may still have trouble marketing outwardly prohydrocarbon energy investments to potential investors, many of
We see private equity continuing
to play a strategic role in the
energy transition.
whom continue to focus on environmental impact in their investment analysis, despite the general decline of environmental,
social, and governance (ESG) investing as a whole.
Although the Trump administration already is pivoting away
from the Biden administration’s focus on ESG, it remains to be
seen how much of the energy transition legislation passed during the prior administration will be rolled back, especially with
such a closely divided Congress. In particular, the energy infrastructure lending program and carbon capture loans under the
Inflation Reduction Act have not been highlighted as targets
for termination. The Infrastructure Investment and Jobs Act is
expected to remain in place. Continuing increase in electricity
demand may serve not only as a check against limiting power
infrastructure expansion, but also contribute to a depoliticization of decarbonization.
The Energy Transition Will Endure
Although President Trump retaking the White House may seem
like a reset to 2016 in some respects, the developments in
decarbonization in the intervening eight years have not been
undone. While oil and gas assets will certainly be of interest
to certain sponsors, we see private equity continuing to play a
strategic role in the energy transition.
Between record amounts of capital (raised and deployed) toward clean energy infrastructure and the demographic necessity of more power generation from any and all sources in the
coming years, the sector has a significant stake in ensuring that
the energy transition continues to march forward. We expect
private equity investments, in the aggregate, to be focused on
assets and projects that are not strictly prohibited by general
energy infrastructure fund mandates and can be marketed as
continuing toward a decarbonized future. ■
—Megan Ridley-Kaye is a partner, Corporate & Finance, with
Hogan Lovells, and Jake Shaner is a senior associate,
Corporate & Finance, with Hogan Lovells.
www.powermag.com
|
POWER March 2025
PARTNER INSIGHTS
S P O N S O RE D CO N T E N T
Partner Insights
Take Back Control with Wind Turbine Retrofits
The rapid increase of global renewable energy generation has made existing wind farms an extremely desirable
resource. While some organizations are acquiring a variety of
wind turbines en masse, others are looking to more efficiently
and effectively utilize existing wind assets. Decades-old turbines with outdated technologies are difficult to monitor and
are even harder to control due to aging OEM system limitations.
Total turbine replacement can be expensive due to costly
outages, supply chain shortages and changes in regulations
since original turbines were installed. Rather than pricey
replacements, power generation owners and operators can
drive peak operational efficiency by retrofitting existing wind
turbine controls.
Wind turbine retrofits allow for quicker turnaround, more
efficient operation, and full ownership of each asset’s data.
When partnering with long-time power industry experts like
Emerson, wind turbine retrofits deliver a quick return on
investment (ROI) leaving legacy connectors in place while
new plug-and-play control modules with modern logic are
installed in the existing footprint.
Despite original manufacturers limiting the amount of data
accessible by asset end-users, Emerson’s Ovation Green solutions and technologies offer full access to data and thorough
control capabilities for end users. Operators gain access to
logic features that deliver extended asset lifespans and 3%5% more annual production, resulting in ROI within the first
year.
Emerson’s seasoned wind power experts can help identify
the best new control strategies to deliver fast ROI. Retrofitting half a dozen to a dozen turbines can quickly demonstrate
the success necessary to scale a retrofit project across a wind
farm or throughout an entire fleet.
Modern turbine retrofit projects are a fast and easy way
to drive more value from existing assets. Because ROI is typically delivered in less than a year, teams can quickly deliver
operations that exceed expectation while increasing safety,
visibility, and flexibility of operations fleet-wide.
Learn more at www.Emerson.com/OvationGreen or contact PowerWater@Emerson.com
Emerson’s Ovation Green technologies and solutions
enable quickly delivered retrofits for many legacy turbines
across a farm, from a wide range of turbine manufacturers.
Ovation Green pre-engineered solutions allow for most retrofits to be completed in just a day or two.
These wind turbine control retrofits can prolong lifespan while driving equipment performance and availability.
Wind turbine control retrofits utilize modern software and technology to extend turbine lifespan and increase annual energy
production quickly and economically.
|
March 2025 POWER
www.powermag.com
17
NUCLEAR POWER
The SMR Gamble:
Betting on Nuclear to Fuel
the Data Center Boom
Data center power demand is accelerating, pushing the grid to its limits and prompting
tech giants to bet on next-generation nuclear reactors. But given steep costs, regulatory
hurdles, and uncertain scalability, is nuclear the future of data center energy—or just
another high-stakes gamble?
Sonal Patel
A
t the end of January, Chinese
artificial intelligence (AI) startup
DeepSeek unveiled two large language models (LLMs)—DeepSeek-R1
and DeepSeek-R1-zero. Unlike previous
generations of AI models, DeepSeek’s
breakthrough reduced the compute
cost of AI inference by a factor of 10,
allowing it to achieve OpenAI GPT-4.5level performance while consuming
only a fraction of the power. The news
upended future electricity demand assumptions, rattling both the energy and
tech sectors. Investment markets reacted swiftly, driving down expectations—
and share prices—for power generation,
small modular reactor (SMR) developers, uranium suppliers, gas companies,
and major tech firms.
Yet, amid the chaos, optimism
abounded. Analysts pointed to Jevons
paradox, the economic principle that
efficiency gains can increase consumption, rather than reduce it. “Our model
shows a ~90% drop in the unit cost of
compute over a six-year period, and our
recent survey of corporate AI adoption
suggests increases in the magnitude of
AI use cases,” said Morgan Stanley Research. The U.S. remains the dominant
market for AI-driven data center expansion, with 40 GW of new projects under
development, aligning with a projected
57 GW of AI-related compute demand
by 2028. Already, that load is transforming the energy landscape. A recent
POWER analysis shows that U.S. data
center electricity consumption could
reach between 214 TWh and 675 TWh
annually by 2030, up from 176 TWh in
2023 (Figure 1).
That has dramatically raised the
stakes, igniting a desperate frenzy
across both the power industry—which
must generate and deliver reliable
electricity for a variety of emerging
large load consumers—and the data
center industry, which is scrambling to
procure firm scalable energy to sustain
1. U.S. data center electricity consumption began rising steadily in 2017, driven by an expanding
server installed base and the growing adoption of graphics processing unit (GPU)-accelerated
servers for artificial intelligence (AI). AI inference workloads and hyperscale data center expansions are expected to increase electricity demand sharply in coming years. Source: Lawrence
Berkeley National Laboratory (LBNL 2024 United States Data Center Energy Usage Report)
18
www.powermag.com
its explosive growth, now and well into
the future. The stakes are fueled by
real fear. In November, research firm
Gartner projected that power required
for AI data centers could reach 500
TWh per year by 2027, a 2.6x increase
from 2023 levels. It warned that power shortages could restrict 40% of AI
data centers by 2027 and drive up energy costs.
The upfront cost of power is no longer the deciding factor for data centers, speakers at the Sustainable Data
Centers Summit in Dallas, Texas, suggested in early February. “It’s crazy
because we look at like the state of
Oregon is about 6 GW, and you have
these large hyperscalers [asking] ‘Can
I get 6 GW too?’ ” said Mohammed
Hassan, senior technical program manager for Amazon Web Services (AWS)
Sustainability. Hassan suggested the
industry has had to rethink how it approaches energy planning and procurement completely to align with
incentives, address regulatory hurdles,
and secure long-term reliability. “Solar
and wind has taken off in the lead. But
if you look at the needs of 2045, in trying to meet the Paris Agreement, solar
and wind won’t be enough, so you have
to look at what’s the next step.”
At the conference, speakers pointed
to potential alternatives that could perform over the short term: natural gas as
a “bridge fuel,” carbon capture as a potential future solution, energy storage
solutions for flexibility and to promote
grid resilience, and renewable diesel as
a cleaner backup power option. But to
meet long-term goals, the industry is
willing to bet on nuclear power for its
many benefits—despite the significant
challenges that remain.
Advanced nuclear developers are
overwhelmingly on board. “The over-
|
POWER March 2025
NUCLEAR POWER
Why Data Centers Are Turning to
Advanced Nuclear
2. Advanced nuclear firm Last Energy is pursuing a business model that relies on longterm power purchase agreements (PPAs) to
finance, build, and operate its fleet of small
modular reactors (SMRs). Courtesy: Last Energy
whelming sentiment nuclear has received from the data center industry is
gravitation, not reluctance,” Matt Fossen, vice president of Communications
at Last Energy (Figure 2), told POWER.
Data center developers recognize that
nuclear is uniquely well-positioned to
provide the kind of clean energy abundance and 24/7 reliability they need
to meet demand. And, in particular,
they’re gravitating toward solutions like
microreactors because they enable fast
delivery, on-site installation, and efficient scalability to meet demand today
and tomorrow.”
Progress to cement supply to data centers has been fluid over the past year,
ushering in a wave of mega-deals, with
many more still in development. While
many have involved power purchase
agreements (PPAs) to procure power
from renewables and natural gas power
plants, several have focused on existing
nuclear plants.
In September, Microsoft and Constellation Energy committed $1.6 billion
to restart Three Mile Island Unit 1, now
rebranded as the Crane Clean Energy
Center, with a targeted 2028 reopening.
Other deals are under discussion by Vistra for Comanche Peak in Texas; Public
Service Enterprise Group, possibly for
Salem and Hope Creek in New Jersey;
and Constellation Energy, possibly for
Calvert Cliffs in Maryland. Meanwhile,
though AWS has sought to expand the
Cumulus data center’s load, co-located
with Talen Energy’s Susquehanna nuclear station in Pennsylvania, to 480 MW,
the proposal was blocked by the Federal
Energy Regulatory Commission (FERC),
which cited concerns about grid cost allocation and reliability impacts, and the
dispute has moved to the U.S. Fifth Circuit Court of Appeals. So far, according
to trade group the Nuclear Energy Institute (NEI), 45% of the 95 existing units
in the U.S. have expressed interest or
planning in data centers, with at least 25
sites looking to fulfil power requirements
ranging from 400 MW to 1,920 MW.
Deals have also abounded for advanced nuclear, including SMRs and
microreactors, even though their commercial viability hasn’t yet been demonstrated. In September, Oracle announced
plans to build a gigawatt-scale data center
powered by three SMRs, securing building permits as part of a push to expand its
cloud infrastructure. In October, Google
signed a pioneering Master Plant Development Agreement with Kairos Power
to develop a 500-MW fleet of molten
salt reactors by 2035. That same week,
Amazon unveiled plans to back 5 GW
of new X-energy SMR projects, starting
with a four-unit, 320-MWe Xe-100 project
in Washington with Energy Northwest,
alongside a Dominion Energy partnership
to explore a 300-MW SMR near Virginia’s
North Anna Power Station. In December,
Oklo partnered with Switch, a Las Vegasbased data center designer, builder, and
PERFORMANCE, ENGINEERED.
Nuclear flow control
solutions tailored to
your new build and lifeextension projects.
ATWOOD &MORRILL®
Testable Check Valve
TRICENTRIC®
Triple Offset Butterfly Valve
HILLER®
Quarter Turn Rack and
Pinion Valve Actuator
PUMPS – VALVES – ACTUATORS – SERVICE
trilliumflow.com/power-mag-nuclear
|
March 2025 POWER
www.powermag.com
19
NUCLEAR POWER
operator, to deploy 12 GW of Aurora powerhouses through 2044 in a historic deal
hailed as “one of the largest corporate
clean power agreements ever signed.”
“When it comes to producing electricity, I wouldn’t say there’s any one advanced reactor technology that jumps out
as being optimized solely for data center
applications,” said Patrick White, research
director of think-tank Nuclear Innovation
Alliance (NIA). “But what we’re seeing is
that these reactors have the potential to
provide the kind of high-reliability, coststable, and emissions-free power that
data centers are increasingly seeking.”
The key reason SMRs are gaining traction over larger gigawatt-scale nuclear
plants relates to siting flexibility, he explained. Industry is looking at deploying
“tens or hundreds of megawatts at a
time, which can make it a lot simpler in
terms of siting it with whatever demand,
wherever the electricity demand actually
is,” he noted. But, in addition, he said
many of these advanced designs will be
engineered to have “a reduced water
demand for cooling water or to eliminate
the need for cooling water entirely, by
looking at things like direct air cooling.”
That also opens up a wider range of potential siting options, including the possibility of co-locating nuclear power plants
directly with data centers, he noted.
The more concerning question surrounding the integration of advanced
nuclear with data centers is whether
nuclear can scale fast enough to meet
the industry’s growing power demands.
The first SMRs from companies like GE
Hitachi and X-energy aren’t expected
to be operational until 2029–2030, and
while microreactors might arrive sooner—around 2027–2028—the scalability
of the smaller units remains uncertain.
“The question is not whether nuclear
can power data centers—it’s whether
data centers are willing to wait for nuclear,” White noted. “Data centers could be
nuclear’s first customers, pulling tech to
commercialization—but will they commit
for the long haul?”
Addressing the Timing Gap
How advanced nuclear scales up ultimately depends on market risks and scalability challenges, experts told POWER.
The most prominent among them, predictably, involves regulatory bottlenecks.
While the Nuclear Regulatory Commission (NRC) is shifting toward a more
“performance-based and risk-informed”
approach, developers remain frustrated
by lengthy approval timelines, evolving
20
safety requirements, and the high cost
of regulatory compliance.
“The barriers for advanced reactor
projects aimed at supporting data center capacity are similar to barriers to
advanced reactor development and commercialization more broadly,” Elina Teplinsky, leader of the energy practice at
Pillsbury Law, told POWER. “However,
there is the added factor of timelines—
data center operators need the power
today, while it takes a number of years
to license, develop, and deploy an advanced reactor, or any nuclear facility.”
So far, the NRC has begun adapting its framework to accommodate
smaller, more flexible reactor designs.
The approval of NuScale’s site-boundary
emergency planning zone (EPZ)—which
eliminated the traditional 10-mile evacuation zone requirement—marked a landmark decision that will allow nuclear
plants to be located much closer to industrial facilities, including data centers,
several experts pointed out.
“NRC already validated a risk-informed
methodology for NuScale that allows
that developer to adopt an EPZ limited to
the site boundary,” Teplinsky explained.
“This paves the way for other developers to use methodologies to demonstrate that smaller EPZs will provide the
same level of protection to the public as
the 10-mile EPZs currently mandated by
the NRC for existing plants. This would
allow the siting of advanced reactors
closer to population centers, including
data centers.”
In addition to the NRC licensing issues,
regulatory concerns span “contending with the interconnecting utility and
state regulations for behind-the-meter
generation or the [independent system
operators] and interconnection queues if
connecting to the grid,” said Baker Botts
partner Elaine Walsh. “Some regions are
friendlier to these developments than
others. Then they may have local water
issues to deal with.”
Meanwhile, policy remains a risk. “It’s
not clear that policymakers have fully appreciated the challenges with meeting
this new expected demand growth, and
policy often trails market trends,” noted
Eli Hinckley, a partner at Baker Botts.
“Uncertainty is a massive hurdle for infrastructure investors—long lives and
relatively low yields need certainty as it
relates to off-take and policy. An unstable
policy position undermines actual investment,” he said.
Permitting is also still evolving—and
recently suffered a setback when FERC
www.powermag.com
rejected an interconnection service
agreement between PJM Interconnection and Susquehanna Nuclear that
would have increased the load sent from
the Susquehanna nuclear plant to AWS’s
Cumulus data center co-located with the
plant. “FERC’s position on interconnection service agreements that allow for
direct power sales from nuclear power
plants to data centers will be a key permitting issue in the potential co-location
of data centers with advanced reactors,”
Teplinsky noted. Meanwhile, states like
Ohio and Georgia have introduced new
policies requiring data centers to cover
infrastructure costs upfront, signaling
another broad shift in how utilities and
regulators plan to manage the financial
burden of rapid energy demand growth.
Emerging Business Challenges
Beyond regulations, the actual business
of running co-located nuclear plants
remains uncertain. While recent discussions highlight tech companies as
potential investors in advanced nuclear
facilities, data center sources confirmed
most aren’t attracted to the prospect of
owning and operating nuclear plants.
“Data center operators are not in the
business of running power plants,” said
Walsh. “They want reliability and cost
certainty, but they don’t want to deal with
regulatory oversight, fuel procurement,
or reactor maintenance.” For now, longterm PPAs look like the preferred model.
“Looking across all fuel and technology
types, we’re seeing a variety of structures to accommodate data center load,
including PPAs and retail energy supply
agreements, as well as data centers,
hyperscalers, and real estate developers
actually taking equity in these projects,”
she added. “I would expect fewer data
center and real estate developers will be
holding equity in nuclear assets.”
Teplinsky, however, noted that along
with recent tech giant investments in
nuclear development, some companies
are exploring partial ownership stakes to
secure guaranteed energy supply. “Deals
with hyperscalers also present an opportunity to secure some equity investment into
these projects,” she said. “The demand
from data centers is less a barrier than an
opportunity—it allows developers to secure firm and bankable offtake for these
projects—potentially at a premium.”
From an operational standpoint, colocated facilities can pose new risks, as
Nina Sadighi, professional engineer and
founder of Eradeh Power Consulting told
POWER. “Who’s going to insure these
|
POWER March 2025
NUCLEAR POWER
plants?” she asked. “That’s a huge unknown. Right now, insurance providers
are hesitant because of the regulatory
and operational complexity. The traditional nuclear liability structures are built
around large reactors with established
operational histories, and when you introduce something novel like SMRs or
microreactors, you’re dealing with a very
different risk profile.”
Sadighi, though generally optimistic
about nuclear’s suitability for data centers, also pointed to potential workforcerelated challenges that hinge on timely
deployment. “If we train nuclear workers now, but deployment gets delayed,
those workers won’t wait around,” she
said. “The nuclear workforce pipeline is
not like a tech workforce, where people
can pivot between roles quickly. These
are specialized skills that require years
of training, and if there’s uncertainty
about job stability, we risk losing them
to other industries entirely,” she said.
Sadighi also raised concerns about the
stringent operational protocols that add
to labor inefficiencies.
Finally, while the data center industry
isn’t solely bent on economics—and told
POWER sustainability with a long-term
vision is a bigger priority—scaling up will
require significant investment. That has
sparked all kinds of debate. Lux Research
estimates first-of-a-kind (FOAK) SMRs
could cost nearly three times more than
natural gas ($331/MWh versus $124/
MWh) and more than 10 times more
when factoring in cost overruns and delays. The firm projects SMRs won’t be
cost-competitive before 2035. “Cheap
nuclear just isn’t in the cards in the next
two decades,” it says.
However, a recent Idaho National Laboratory study suggests costs could decline
as SMRs move to Nth-of-a-Kind (NOAK)
production. It suggests modular construction, factory fabrication, and standardized deployment could drive efficiencies,
potentially reducing costs as more units
are built. Notably, the study describes an
“economies-of-scale penalty crossover
point” where SMRs achieve cost parity
with large reactors if enough units are
deployed. It estimates that deploying four
300-MW SMRs could drop costs by 20%
compared to a single 1,200-MW reactor.
For now, the first real-world test of this
cost curve will be Ontario Power Generation’s BWRX-300 SMR fleet, expected to
start operating by 2029.
The fundamental debate is rooted in
several uncertainties—which is not uncommon for emerging sectors, experts
also generally pointed out. “Tax credits—especially the clean electricity production tax credits and investment tax
credits—will be vital to the commercial
viability of these projects, especially considering the FOAK risk,” said Teplinsky.
“DOE [U.S. Department of Energy] loan
guarantees and direct financing from the
Federal Financing Bank at low rates are
also essential to companies’ ability to
secure debt and reduce cost of capital.
Grant funding to support commercial
demonstrations and high-assay low-enriched uranium support are also key.”
However, Teplinsky cautioned that
these incentives were in place before
AI-driven data demand soared. “[T]hey
will need to remain in place in order
for data center-driven advanced reactor projects to be viable,” she said. “In
fact, these incentives need to expand
and address some of the key issues
still inhibiting large-scale advanced reactor deployment despite data center
demand, such as FOAK deployment and
cost overrun concerns.” ■
—Sonal Patel is a POWER senior editor.
No Unexpected Delays
Maintenance outages take months of planning
and have extremely tight time lines for completion.
We know you can’t afford to waste any time on
equipment failures or malfunctions. The powerful
and durable Harrington LB lever hoists will pull
you through any equipment replacement
or scheduled maintenance on time, every time!
• Compact design for use in tight areas
• Lightweight for easy transportation and storage
• Heavy-duty, all steel construction
• Revolutionary freewheeling for one hand operation
• 360º handle rotation
• Nickel-plated, corrosion-resistant load chain - Standard
Toll Free: 800-233-3010
Phone: 717-665-2000
|
March 2025 POWER
www.powermag.com
kitocrosby.com
21
C&I POWER SYSTEMS
A Business-Like Approach to
Power Generation
The decentralization of electricity production and delivery is evident in the commercial
and industrial (C&I) sector, as businesses move to produce their own power to ensure a
reliable and resilient supply of energy.
Darrell Proctor
K
eeping the lights on 24/7 is a focus
for commercial and industrial (C&I)
enterprises, which have always
sought reliable and resilient power supplies. It’s an even greater concern as severe weather becomes more common,
and utilities and power producers battle
the challenge of avoiding disruptions despite an aging power grid.
Data centers are a prime example.
The energy-intensive nature of processes for artificial intelligence and
advanced technology means such enterprises want control over their power
supply, which is why so many tech companies are procuring power purchase
agreements or looking to secure on-site
generation resources.
As business operations become more
complex, C&I groups are looking at varied and advanced technologies to provide
energy. They may want precise control
over voltage, and also to address safety
concerns. Cost is always a factor, which
means businesses are seeking the most
efficient and cost-effective technologies
to power their pursuits.
Backup power systems such as generators or battery energy storage are
being incorporated into infrastructure.
Companies also want energy management systems that can monitor and control energy consumption, and promote
energy efficiency and cost savings along
with reliability and resiliency.
“Utilities are leveraging several different technologies to help design C&I
power systems,” said Gilbert Michaud,
an assistant professor at Loyola University in Chicago, Illinois. “Smart grid
technologies such as advanced metering infrastructure [AMI] are used to help
observe and manage energy use in real
time, and supervisory control and data
acquisition [SCADA] is another tool used
to manage power and grid operations.”
Michaud told POWER, “As the C&I
sector continues to desire renewable
energy solutions, solar PV [photovol-
22
taic] design tools, energy storage, and
microgrid controllers are also being
deployed. Other technologies, such
as advanced protective relays, are also
helping utilities to design C&I power
systems to meet industry needs in a reliable and efficient way.”
Brandon Young, CEO at Payless Power, a Texas retail energy provider, said,
“The focus of many businesses is on reliability, cost savings, and sustainability,
making commercial and industrial power systems a fast-changing landscape.
More firms have embraced on-site power generation technologies, including
solar panels, CHP [combined heat and
power] systems, and backup generators. Other than enhancing resilience,
these technologies enable businesses
to hedge against increased utility costs
and outages.
“Energy storage systems, especially
lithium-ion batteries, are fast becoming one of the core components of C&I
power solutions. Their key inclusion in
rationale is because they store energy
utilized at the time of peak demand or
during an outage so that businesses
can keep operating even if the grid goes
down,” said Young. “In addition, many
companies have coupled batteries with
renewables, such as solar, resulting in a
hybrid system that gives both reliability
and sustainability.”
A Reliance on Resilience
There are several types of C&I power systems incorporating an array of
equipment. Some buildings feature
transformers that can “step down”
voltage from the power grid to a suitable level for building distribution.
Switchgear, or devices to control and
protect electrical circuits, including
circuit breakers and fuses, also can
be utilized. Uninterruptible power supplies, or UPS, have been used for years
to provide backup power to critical systems during power outages.
Michaud said on-site power producwww.powermag.com
tion is key for many C&I enterprises, with
several important considerations—such
as finances, decarbonization, and more—
needed when designing a system.
“This is increasingly important for the
C&I sector. In addition to the obvious energy cost savings, energy resilience is a
major driver of on-site production,” said
Michaud. “For critical facilities such as
hospitals, military sites, manufacturers,
and others, uninterrupted operations
are paramount, and on-site generation
with microgrids or storage can help ensure power continuity during outages.
While decarbonization and sustainability
goals are important considerations, cost
and reliability are the most strategic reasons for on-site power.”
Spencer Nervig, EnerVenue’s senior
director of Product Management and
Application Engineering, told POWER
his company has “experience with C&I
systems designed for resiliency, as
well as solar-plus-storage systems that
combine resiliency with energy cost
optimization through reduced demand
charges, peak shaving, energy arbitrage, or reduced fuel consumption.
The modular design of our batteries
allows for energy storage projects to
be easily sized from C&I to grid-scale
applications.”
Said Nervig: “Understanding a customer’s needs, site requirements, and
goals for integrating C&I power systems is critical to designing, installing,
and operating a successful project.
Understanding a customer’s load and
usage requirements allows a solutions
provider to properly size a system with
appropriate controls. Likewise, it is
important to know, consult, and implement an O&M [operations and maintenance] plan that enables successful,
and profitable, long-term operation.”
Michaud told POWER, “There are
many, many examples of successful
projects. Renewable energy integration
and efficiency continue to be pillars of
corporate sustainability missions, and
|
POWER March 2025
PARTNER INSIGHTS
S P O N S O RE D CO N T E N T
Partner Insights
Sitetracker: One complete platform to Plan, Build, Operate,
and Maintain critical infrastructure
Imagine a world where managing assets - from project
origination to ongoing maintenance - is no longer a struggle.
With tools that empower enterprise teams through flexible
workflows, full audit trails, and real-time reporting, this vision becomes a reality. Sitetracker’s complete asset lifecycle
management platform allows owners, operators, and contractors working on critical infrastructure to plan, build, operate and maintain, all in one common place.
Plan Strategically for Long-Term Success
Sitetracker simplifies planning with tools that streamline
permitting, siting, document management, and portfolio
oversight.
By centralizing critical workflows, teams can collaborate seamlessly, maintain full visibility into budgets and
timelines, and eliminate bottlenecks in approvals. With a
smooth transition to construction and real-time progress
tracking, Sitetracker ensures projects stay on track, accelerating timelines and maximizing portfolio value.
Build Efficiently with Optimized Operations
Sitetracker enables owners of critical infrastructure to
streamline construction management with tools designed for
scheduling, document management, and RFI tracking.
Operate Proactively to Reduce Risks
Sitetracker enables strategic oversight of operations with
tools for asset tracking, contract and document management, inventory control, and real-time reporting.
By centralizing critical data, organizations gain a holistic
view of their assets, ensuring informed decision-making and
alignment with long-term objectives. Integrated financial
tracking connects operational activities to budgets, enabling
proactive cost management and maximizing the value of investments, while maintaining seamless, efficient operations
across the asset lifecycle.
Maintain Assets to Maximize Lifecycle Value
Sitetracker’s O&M capabilities streamline both preventative and unplanned maintenance with tools for work order
management, scheduling and dispatching, and inventory
tracking.
Our mobile application ensures field teams can access job
details, complete forms, and update progress in real-time,
enhancing safety and accountability. By connecting maintenance activities back to job finances, organizations can manage costs effectively while ensuring assets perform reliably
and remain operational for the long term.
Real-time visibility and a mobile application keep field
crews aligned with back-office teams, ensuring activities are
tracked accurately and projects stay on schedule. With endto-end collaboration and seamless workflows, Sitetracker
simplifies construction processes and ensures a smooth
handoff to O&M, so projects transition effortlessly into the
next phase of the asset lifecycle.
To learn more visit: http://sitetracker.com
|
March 2025 POWER
www.powermag.com
23
C&I POWER SYSTEMS
are increasingly being driven by tech
companies with data centers. For instance, the Turquoise Solar Project in
Washoe County, Nevada, is a 61-MW
solar farm being used to help power Apple’s data center in Nevada. Wind energy
from the 298-MW Canadian Hills wind
farm is being used to power Google data
centers in Oklahoma. There are many
other examples using large-scale batteries, solar thermal, and other advanced
energy technologies.”
Building a Better Boiler
Ashwin Salvi, co-founder and chief commercial officer for Colorado-based AtmosZero, said his company “is focused
on decarbonizing industrial steam by
developing a cost-effective, plug-andplay solution at scale. Industrial steam
has long been generated by burning fossil fuels, but as companies seek to improve their sustainability metrics, fossil
fuel boilers need to be replaced with a
cleaner solution.”
Salvi said AtmosZero developed “a
drop-in, air-sourced, steam generating
heat pump [Figure 1] that can provide up
to 50% of industrial heat needs and offer
customers operational cost savings compared to other decarbonized technologies. The system consists of electrically
driven refrigerant compressors, inverters, and control systems. As industrial
heat continues to be decarbonized, C&I
power systems will continue to play an
increasing role.”
Salvi said AtmosZero’s first installation is for New Belgium Brewing, a
beverage company in Fort Collins, Colorado, with a system expected to begin
operating within a few weeks. “This
system will go live at the end of Q1
[first quarter] 2025,” said Salvi. “New
Belgium is on a mission to decarbonize
their manufacturing processes, using a
full spectrum of technologies from renewable electricity to renewable natural
gas and even carbon capture.
“An unsolved challenge for them was
how to make decarbonized steam costeffective. Steam production occurs primarily through water boilers powered
by natural gas combustion. The incumbent method of steam production is low
cost because of the boiler technology
and fuel source, but it does generate
on-site emissions,” said Salvi. “Until our
Boiler 2.0 technology, the only alternative method of steam generation was
through electric-resistive boilers. While
these systems have low capital expenses, they have high operational costs due
to low efficiencies and high electricity consumption. Using the AtmosZero
steam generating heat pump enables
customers like New Belgium to achieve
the sustainability goals in a low-cost and
scalable approach.”
Massachusetts-based Vicinity Energy,
a U.S. leader in district energy systems,
recently announced the launch of eSteam, a carbon-free thermal energy solution. The company unveiled its inaugural
42-MW industrial-scale electric boiler
(Figure 2) at its facility in Cambridge,
Massachusetts. Vicinity said its eSteam
system is “a pivotal advancement in
urban sustainability. Boston- and Cambridge-based customers have partnered
with Vicinity to use eSteam in their buildings as an immediate solution for reducing carbon emissions.”
Vicinity imports renewable electricity through its co-located substations
to power the electric boiler, generat-
2. Vicinity Energy has launched eSteam, a
carbon-free, industrial-scale electric boiler.
Courtesy: Vicinity Energy
ing carbon-free eSteam. Leveraging its
established underground steam network, Vicinity delivers eSteam directly
to customers.
“This milestone is about more than
just technology—it’s about turning the
vision of a cleaner, more sustainable
future into reality for our customers
and cities,” said Kevin Hagerty, president and CEO of Vicinity Energy. “The
strong interest from our customers underscores that the transition to carbonfree thermal energy is both urgent and
achievable today. With eSteam, Vicinity
is leading the way in redefining sustainable urban energy solutions.”
Vicinity is contracted to supply eSteam to organizations such as Emerson College, whose main campus is
in Boston, and IQHQ, a life sciences
company with a campus at Alewife
Park in Cambridge.
“The launch of eSteam marks a major step forward in our journey toward
cleaner energy,” said Jennifer Lamy, associate director of sustainability at Emerson College. Lamy said the technology is
now heating campus buildings, “and in
the next several years, all of Emerson’s
steam-heated buildings will be heated
with carbon-free eSteam. Our use of eSteam will contribute significantly towards
our goal of carbon neutrality by 2030.”
Driving Down Emissions and Costs
1. An AtmosZero employee finalizes the construction of a Boiler 2.0 air-sourced heat exchanger, which can help decarbonize industrial heat. Courtesy: AtmosZero
24
www.powermag.com
Doron Shmueli is CEO of MayMaan, a
company whose AquaStroke technology
(Figure 3) is enabling internal combustion
engines to run on cleaner, water-based
fuel, reducing both costs and emissions.
Shmueli told POWER his company’s
|
POWER March 2025
C&I POWER SYSTEMS
“core technology focuses on clean energy generation using carbon-neutral
renewable fuels, achieved through the
elimination of NOx emissions via highmoisture internal combustion engines.
These engines utilize biofuels and renewable synthetic fuels. Combustion
with high-moisture-content fuels reduces peak temperatures, effectively eliminating NOx formation while enhancing
fuel efficiency. This integrated approach
delivers a cleaner, more sustainable energy generation system, reducing both
carbon emissions and harmful pollutants, thereby supporting the transition to
a low-carbon energy future.”
Eitan Shmueli, the company’s president, said MayMaan has “seen strong
success with our commercial deployments of 35-kW renewable fuel
generators. These systems integrate
seamlessly into existing infrastructure to
provide reliable, low-emissions power.
They have proven particularly effective
in underserved markets, where their
smaller kilowatt capacity and attractive
total cost of ownership offer an ideal solution for businesses aiming to control
costs while meeting performance and
sustainability benchmarks.” Eitan Shmueli said MayMaan is “expanding our efforts to scale these solutions to a 1-MW
capacity. This initiative aims to serve
larger commercial and industrial loads
while adhering to the same principles
of cost-effectiveness and decarbonization. By combining our proven approach
with advanced engineering, we are addressing the growing demand for more
robust, sustainable power systems that
support financial viability alongside ambitious emissions-reduction goals.”
3. MayMaan’s AquaStroke technology is enabling internal combustion engines to run on
cleaner, water-based fuel, reducing both costs
and emissions. Courtesy: MayMaan
|
loads when the PV is offline, and then
recharging the next day with the excess
PV. Since it’s also a microgrid, in an outage, building loads can continue to operate with the onsite resource.”
Supporting On-Site Power Systems
4. PAE Engineers designed the PAE Living Building in Portland, Oregon. It’s a commercial building in a downtown area with a
125-kVA/256-kWh onsite battery, and 133-kW
rooftop solar array in a microgrid configuration. Courtesy: PAE Engineers
Karina Hershberg, an associate principal at PAE Engineers, said her company’s
“onsite energy projects have mostly focused on PV with BESS [battery energy
storage system]-based system architectures. When configured as microgrids,
some of our projects have also included
a generator as an additional level of support. The generation is often best used
as a backup to the backup and only engaged if the other systems have depleted their capacity.”
Hershberg told POWER, “We have a
community project in California in early
design considering small-scale biomass
for both electric and thermal energy. The
design concept is to use the biomass for
baseload generation with PV and battery
layering on as both a grid-connected resource and an off-grid resilience system.
The project is located in a region with
a historic timber economy and an increased wildfire risk so the added benefit of the biomass system is the potential
for an energy system that also creates
economic revitalization and beneficial
forest management.”
Hershberg highlighted the PAE Living
Building (Figure 4), located in downtown
Portland, Oregon, as a model project.
“This project is a commercial building in
an urban core with a 125-kVA/256-kWh
onsite battery and 133-kW rooftop PV
array in a microgrid configuration [which
can operate grid-connected and griddisconnected],” said Hershberg. “This
project is especially unique because
the local grid network has a limit on
the allowed back-feed from the building
system onto the utility network, which
greatly limits the net-metering output
from the PV system. To account for this
limitation, the microgrid system uses
as much of the PV generation onsite
by storing excess in the battery, discharging the battery to support building
March 2025 POWER
www.powermag.com
Michaud said electric utilities and local
governments should provide incentives
for C&I enterprises to incorporate on-site
power systems, noting their importance
for both today and the future.
“Many already are [offering incentives]
through tax credits, grants, rebates, and
other programs. Not only does this offer
benefits to C&I enterprises themselves,
but there are broader community benefits such as improved air quality and
health, economic and workforce development, energy security, and emergency
preparedness,” said Michaud. “On-site
power systems reduce the strain on the
grid and help utilities reduce expensive
infrastructural upgrades, as well as help
with local load balancing. Decentralization and independence are key to a resilient energy future.”
Said Eitan Shmueli: “Providing incentives for on-site power systems is both
prudent and strategic for utilities, local
governments, and businesses. The net
power curve—which illustrates how onsite generation alters the timing and magnitude of energy drawn from the grid—is
a critical factor in determining the value
proposition of these systems. By smoothing out peaks and reducing reliance on
the grid during high-demand hours, onsite power resources mitigate the ‘duck
curve’ effect, where net load dips at midday and spikes in the evening. This contributes to grid stability, lowers demand
charges, and creates opportunities to optimize energy usage and storage.”
Nervig agreed on the need for incentives. “State and local government support for C&I customers is a key element
in expanding the use of on-site power
systems. As an example, federal, state,
and local incentives have helped grow
the grid-scale and residential solar energy sector, including storage, but C&I
incentives have lagged, creating the
need for additional incentives to help the
market mature,” said Nervig. “Added incentives provide technology and service
providers the long-term stability needed
to foster a healthy, thriving market. Done
correctly, incentives beget investment,
which drives costs lower for all market
participants in the long term.” ■
—Darrell Proctor is a senior
editor for POWER.
25
POWER MARKETS
AI Boom Reshapes Power
Landscape as Data Centers
Drive Historic Demand Growth
The power industry was once considered slow-moving and perhaps even boring. That
is no longer the case as technology has expanded and power demand projections
skyrocket. New reports released by analysts at Enverus and Deloitte are examined to
provide insight on what’s likely to evolve in the power industry over the coming year
and beyond.
Aaron Larson
T
he artificial intelligence (AI) revolution is dramatically transforming
power demand forecasts, with data
center expansion emerging as the dominant force shaping energy markets in
2025. This seismic shift in energy demand
comes at a pivotal moment for the U.S.
power sector, as it grapples with competing priorities around reliability, environmental impact, and cost. The new Trump
administration’s energy priorities and policies should not be overlooked either, and
innovative advances in technologies under
development could be game-changing for
the industry. Despite all the uncertainties,
industry analysts offer valuable insights
into likely developments.
AI Data Centers Drive Load Growth
Enverus, an energy-dedicated softwareas-a-service (SaaS) company that leverages generative AI across its solutions,
released its 2025 Global Energy Outlook
1. Talen Energy’s Susquehanna nuclear
power plant, located near Berwick, Pennsylvania, has a power purchase agreement to
supply power for at least 10 years to a data
center campus Amazon Web Services (AWS)
purchased near the site from a subsidiary of
Talen. Courtesy: Talen Energy
26
in late January. Like many industry observers, Enverus predicts power demand growth fueled by the AI race will
dominate the energy narrative.
“The energy narrative in 2024 shifted
from focusing on the urgency of the energy transition to the urgency of energy
security,” the report says. “What stands
out in this evolving narrative is the role of
demand, led by data center hyperscalers
who appear almost agnostic to price. For
this group, the energy trilemma prioritizes
reliability as No. 1, environmental concerns as No. 2, cost as No. 3. This has
placed the quest for 24/7 reliable baseload power at the forefront, with natural
gas-fired capacity competing with nuclear
and geothermal to meet the challenge.”
Enverus forecasts U.S. load to increase 1.2% in 2025 compared to 2024,
and 38% by 2050. It says accelerated AI
adoption, and several energy transition
and electrification themes, foster expansion. “Two of these levers—data centers
and residential solar—impact the future
in complex ways,” the report says. “Installed residential solar will rise from 45
GW to 56 GW in 2025 and 557 GW by
2050, vastly contributing to intraday volatility in load and offsetting load growth
from all non-data center demand drivers.
Data centers are the largest driver of load
growth, with the highest requirement for
reliability and most risk to the upside.”
Experts at Deloitte agree that data centers represent the proverbial “elephant in
the room.” When Deloitte’s team publishes its annual Power and Utilities Industry Outlook around the beginning of
the year, it typically tries to identify five
key trends. However, this year, Thomas
L. Keefe, vice chair and U.S. Power, Utilities & Renewables sector leader with
Deloitte, suggested there was really one
key trend and four others that support it.
www.powermag.com
“Clearly, data centers is the biggie,” he
told POWER.
“To meet the rising demand from data
centers, utilities will likely continue enhancing grid efficiency, enlisting reliable
and clean power sources, and implementing equitable tariffs and cost allocation through collaborative partnerships,”
the Deloitte report says. Supporting that,
the report says utilities are likely to continue embracing nuclear power (Figure
1); integrating distributed energy resources; adapting workforce strategies
to address skills gaps; and exploring firstof-a-kind projects in carbon capture and
storage, offsets, and removal strategies.
Of course, the biggest challenge surrounding the data center boom is supplying the potentially explosive load growth.
“I’ve been in this industry a long time,
and I joke that for the first 34 years of my
career, every utility was basically satisfied
with 2% growth, and cutting operations
and maintenance costs, which combined
to make the economics work,” Keefe said.
“Now, some utilities are talking 100%
growth in the next five years. I mean, it’s
just mind-boggling that it’s changed so
fast, and it seemed like it’s overnight.”
Tax Incentive Changes Could Put
Projects at Risk
Meanwhile, the inauguration of a second
Trump administration has raised concern
over the potential rollback of renewable
energy incentives. Enverus says tax
credits are foundational to the economics of the U.S. renewable energy sector.
For its report, Enverus Intelligence
Research (EIR), a subsidiary of Enverus,
analyzed breakeven economics across
nine technologies to assess the risk
of Inflation Reduction Act (IRA) credit
elimination, comparing them with and
without IRA incentives against industry
|
POWER March 2025
POWER MARKETS
2. Climeworks began operations of its direct air capture and storage plant, Mammoth, in Iceland last year. The plant is designed for a nameplate capture capacity of up to 36,000 tons of
CO2 per year by filtering CO2 from the air and storing it permanently underground. Courtesy:
Climeworks
incumbents. Of the credits analyzed, EIR
suggested the 45Q tax credit for blue hydrogen and enhanced oil recovery (EOR)
projects, as well as the production tax
credit (PTC) and investment tax credit
(ITC) for solar and onshore wind, are
least at risk for elimination.
“Across the Lower 48 [the continental U.S.], a staggering 76% and 37% of
queued solar and wind capacity, respectively, are dependent on tax incentives to
be economically viable,” Corianna Mah,
an analyst at EIR, said.
Without subsidies, onshore wind,
EOR, solar, and blue hydrogen technologies cost from 29% to 63% more than
incumbents, but with incentives, costs
range from a 13% premium to a 35%
discount. “The tax credits enable them
to compete with industry today, with the
hope that further buildout will reduce
costs and increase their unsubsidized
competitiveness,” the report says. Mah
added, “On average, we see that solar
projects have a higher reliance on tax
credits because of higher average LCOEs
[levelized cost of energy] and lower average capacity factors than wind.”
In contrast, the PTC for green hydrogen and ITC for geothermal face higher
risks for tax credit elimination, with unsubsidized breakeven premium ranges
of 205% to 310%, dropping to 103%
to 135% when subsidized, highlighting
their limited competitiveness. Landfill
and manure renewable natural gas projects outcompete the voluntary market
without credits, potentially making credits unnecessary for these technologies.
“In our analysis, we find the most
competitive projects are those with before-tax levelized cost of energy that are
already below the average power price
and are viable without the boost from
RECs [renewable energy certificates]
and tax credits. Projects with an after-tax
levelized cost of energy below the average power price and average REC price
|
are only viable because of the existence
of tax credits,” Mah said.
Marlene Motyka, Deloitte’s U.S. Renewable Energy leader and a principal in
Deloitte Transactions and Business Analytics LLP, felt the coming year would be
a good one for renewables. “Renewables
are generally expected to retain momentum in 2025,” she told POWER. “They’re
really in a race with other clean generation options to fill this growing resource
gap, but they offer technology maturity,
lower cost, higher modularity, and so I
think those are all very good things and
very positive things,” she said.
While Motyka acknowledged hearing discussion around terminating the
IRA, she didn’t think a full repeal is
likely. “There’s a possibility that certain
provisions of IRA could be modified or
repealed, but I think many areas of the
country are seeing the positive impact
of broader economic goals and benefits
from IRA, and the expectation is that
it’s unlikely that it will be completely repealed,” Motyka said. She specifically
cited nuclear and carbon capture and
storage as areas that may be less impacted than others.
Potentially Disruptive Developments
Enverus expects markets with high battery energy storage system (BESS)
adoption to see a significant transformation in battery operations. Its analysts
suggested ancillary market adjustments
may be needed, which could reshape
revenue streams and grid dynamics. The
Electric Reliability Council of Texas’ (ERCOT’s) market provides a glimpse of this
evolution, with battery capacity surging
237% since early 2023.
“While battery revenues traditionally
depended on ancillary services and energy arbitrage, growing storage saturation
is changing the landscape,” the Enverus
report says. “As capacity outpaces ancillary market eligibility, operators will shift
March 2025 POWER
www.powermag.com
toward arbitrage-driven models, competing with dispatchable capacity such as
natural gas-fired generation. Negative pricing hours will further enhance batteries’
competitiveness, allowing them to outbid
natural gas plants and lowering bid prices.”
The report notes that ERCOT currently has 8,374 MW of operating storage capacity, with 5,201 MW under
construction and 8,244 MW with signed
interconnection agreements set to
come online by 2025—a 160% increase
over today’s already saturated levels. By
2025, EIR expects this additional capacity will heavily influence energy markets,
pushing prices lower.
Enverus also sees positive prospects
for advanced nuclear reactors and direct
air capture (DAC) carbon capture projects. While its analysts recognize that
nuclear projects will require significant
regulatory reforms to streamline integration into the energy grid and address operational barriers, Enverus believes the
ADVANCE Act of 2024 has boosted momentum for advanced nuclear technologies, especially small modular reactors.
Concerning DAC, the report says momentum stems from the commissioning
in 2024 of Climeworks’ Mammoth project in Iceland (Figure 2). While it was the
world’s largest DAC facility at 36,000 tons
of CO2 per year (tpa) when it opened, it
will be dwarfed by 1PointFive’s 500,000
tpa Stratos facility when it comes online
in Ector County, Texas, this year.
Yet, DAC faces growing challenges
associated with its energy-intensive nature, as highlighted by the withdrawal of
Project Bison in Wyoming. Additionally,
the future of the U.S. Department of Energy’s Regional DAC Hubs program and
any future funding for DAC is uncertain
under the new administration. Meanwhile, high capital costs and energy demands remain significant hurdles as DAC
approaches the peak of inflated expectations, Enverus said.
Deloitte’s Keefe noted that carbon capture technology is not new or unproven,
it’s just not cost-effective at the present
time. However, if incentives are offered
and investments are made in the technology, the costs will likely come down. Keefe
reflected on solar and wind cost curves
and how they’ve declined over the past
20 years. “Pick your source,” he proposed.
“Whether it’s geothermal or hydrogen or
carbon capture, I’m hopeful that we can
get there, and smart people continue to
find ways to make it more cost-effective.” ■
—Aaron Larson is POWER’s
executive editor.
27
CARBON CAPTURE
What Comes Next for Carbon
Capture in the Power Industry?
Policy upheavals have cast uncertainty over the future of carbon capture and storage
in the power sector, though its momentum is widely expected to continue.
Sonal Patel
I
n November 2024, the Global CCS Institute, an international think tank with
headquarters in Melbourne, Australia,
issued its annual overview of global progress for carbon capture and sequestration
(CCS). In a departure from previous years,
it paints a picture of significant growth
and a renewed sense of forward movement for CCS technologies.
“2024 has seen significant growth in
CCS facility development. 50 facilities are
now in operation (3 of which are dedicated transport and/or storage projects), and
44 are under construction (7 of these are
transport and/or storage),” the report says.
As of July 2024, the pipeline includes 628
projects—a 60% year-on-year increase.
“Both in facility count and capacity, the
project pipeline has reached record levels,” it notes. “More significantly, the
capture capacity of facilities under construction increased by 57%.” The “more
than doubling of these projects in the past
12 months, from 121 to 247, is particularly
noteworthy.” In addition, 222 transport/
storage projects, which do not include
capture, were in various stages of development, “showcasing significant capacity
growth across all stages, including a 118%
boost in the number of Advanced and Early Development projects.” Progress has
been broad, with projects sprouting up in
the U.S., Europe, the Middle East, China,
and Southeast Asia, it notes.
The dramatic turnaround reflects a confluence of factors, including increasingly
stringent climate targets, supportive government policies, technological advancements, and a growing recognition that CCS
is indispensable for decarbonizing hard-toabate sectors, said Jarad Daniels, Global
CCS Institute CEO. A major driver has
been collaboration. “The Institute has also
identified over 50 bilateral agreements or
memorandums of understanding (MoUs)
executed by national governments since
2020 that include CCS within their scope,”
he said. Still, while the growth is “very encouraging, we still have a long way to go
to attain the gigatonnes per annum of carbon management deployment, both point
28
source and CDR [carbon dioxide removal],
required to help reach net-zero and avoid
the most severe consequences of global
temperature rise.”
For the power generation industry,
these developments carry profound implications. Long seen as a major source
of CO2 emissions, the industry has faced
a rollercoaster of pressure to reduce its
carbon footprint, and the recent surge
in demand projected in regions like the
U.S. has pitted reliability against sustainability. Experts draw CCS as a pragmatic
pathway that could allow the sector
to continue utilizing its fossil fuel-fired
power plants—for baseload and peaking
power—while drastically reducing their
emissions. But what is the true state of
carbon capture in power generation, and
can it truly deliver on that promise?
A World of Activity
So far, only a handful of power generation projects have begun commercial
operation since SaskPower’s 115-MW
Boundary Dam 3 in Saskatchewan, Canada, became the world’s first coal-fired
power facility to implement carbon capture successfully in 2014. In 2017, Petra
Nova near Houston, Texas, came online.
After a pause, it returned to service in
September 2023. Shenhua Guohua Jinjie
Energy, a subsidiary of Shenhua Group,
began operating a CCS facility at a coalfired power plant located in the Jinjie
Economic and Technological Development Zone in China’s Shaanxi province in
2021. In 2023, China expanded its CCS
operations with Huaneng Yangpu GasFired Carbon Capture Demo (0.002 million tonnes per annum of CO2 [Mtpa]),
a small-scale industrial capture project,
and China National Energy Taizhou (0.5
Mtpa), which captures CO2 from a coal
plant for enhanced oil recovery (EOR).
Projects in the pipeline vary widely in
scale and technology, ranging from pilot
projects to large-scale commercial deployments. The largest projects include
the Net Zero Teesside CCGT (combined
cycle gas turbine) Facility in the UK (2
Mtpa CO2) and the Drax BECCS project
www.powermag.com
(8 Mtpa CO2), both of which plan to store
captured CO2 in deep saline formations.
In the U.S., key projects include Cal Capture (1.55 Mtpa CO2, depleted oil and
gas field storage) and Project Tundra,
which, while still under evaluation, could
capture 4 Mtpa CO2. North America,
notably, is seeing a rise in flexible, retrofit CCS projects, with facilities like the
Starwood Energy Power Plant in the U.S.
planning EOR as a storage solution, the
report notes.
Regionally, Europe leads in CCS deployment. Multiple large-scale projects in
the UK, Denmark, and Norway are slated
to leverage deep saline formations and
depleted gas fields for long-term CO2
storage. Among much-watched projects
are the Caledonia Clean Energy CCS project (3 Mtpa CO2, UK) and the East Coast
Cluster. In Asia, countries like China and
South Korea are exploring CCS options,
although most projects remain in early development. SK Energy’s Shepherd Project
in South Korea remains under evaluation
and is expected to be one of the region’s
flagship efforts. While Asia-Pacific projects are diverse in approach, the lack of
fully developed CO2 transport and storage
networks remains a key challenge.
Technology: Pushing the Boundaries
Technology-wise, post-combustion capture remains the dominant approach,
particularly for natural gas and coal-fired
power plants, with absorption-based systems leading in deployment. However,
novel capture methods like oxy-fuel combustion and membrane separation are
being explored in select pilot projects. As
CCS continues to scale, advancements
in low-energy solvent regeneration, nonamine solvents, and modular capture designs could enhance economic viability
and efficiency (Figure 1).
“This landscape continues to evolve
with technological advances happening
in real-time,” Dr. Dipankar Sahoo, vice
president for Technology and Energy
Transition at Competitive Power Ventures (CPV), told POWER. “At CPV, our
view is that carbon capture is the most
|
POWER March 2025
CARBON CAPTURE
■ Solvent Stability. Improving the stabil-
1. MTR Carbon Capture has completed the
world’s largest membrane-based carbon capture plant at the Wyoming Integrated Test
Center, set to capture 55,000 tonnes of CO2
annually from Basin Electric’s Dry Fork Station. The facility, which will begin operations
later this year, marks a step toward scaling
membrane-based carbon capture as an alternative to solvent-based systems. This photo
shows MTR and Department of Energy personnel at the Gillette, Wyoming, site in September 2024. Courtesy: MTR
technologically viable low-carbon solution for natural gas assets. We currently
have over 5 GW of low carbon projects in
development with the potential to utilize
carbon capture technology,” he noted.
“At CPV, we have two CCGT projects
in advanced development—the 2,060MW CPV Shay Energy Center in West
Virginia and 1,350-MW CPV Basin Ranch
Energy Center in Texas—both designed
and permitted with the option to include
a carbon capture system,” he said. “We
have several others in differing stages
of development throughout the country.
When the technology is viable, we intend to be a first mover.”
Sahoo pointed to several technology
considerations CPV is watching:
■ Lower Regeneration Energy Require-
ments. Traditional amine-based solvents used for CO2 capture require
significant energy to regenerate,
reducing the overall efficiency of
the CCS process. Advancements
in proprietary blended amines are
showing promise in lowering these
energy requirements.
■ Capital Expenditure (CapEx) Reduction. The high capital cost of CCS facilities is a major barrier to widespread
adoption. Innovations aimed at reducing CapEx, particularly for the absorber unit, are crucial.
■ Lower Emissions. While CCS effectively reduces CO2 emissions, it’s
essential to minimize other emissions associated with the process,
such as volatile organic compounds
(VOCs) and nitrosamines, which can
be more harmful.
|
ity of solvents is crucial for reducing
solvent degradation and operational
costs.
■ Non-Amine Solvents. Exploration of
alternative solvents, such as metal-organic frameworks (MOFs), could offer
advantages over traditional aminebased systems.
■ Flexible Operation. CCS systems that
can operate independently of the
power plant’s operation offer greater
flexibility and can potentially improve
overall efficiency.
While recent progress is encouraging,
several challenges persist. “We do, however, need to complete the ecosystem
around carbon capture to include pipeline
permitting reform as well as developing a
regulatory framework for carbon storage,”
Sahoo said. Costs also remain a concern.
To date, the business case for CCS investors remains heavily dependent upon
regulations that price or limit CO2 emissions, policies that create direct financial
incentives for capturing and storing CO2,
or a combination of both. These have
come in the form of Carbon Contracts for
Difference (CCfD) schemes, government
off-takes, investment tax credits, or direct
capital injection.
“Commercially, adding carbon capture
more than doubles the cost of a project
without a revenue stream to offset that
cost. With this in mind, efforts such as
putting a price on carbon as well as the
Inflation Reduction Act’s (IRA’s) 45Q tax
provisions would support widespread
adoption,” Sahoo said. “We support a national price on carbon, at a minimum, in the
energy market. Through this, we would be
able to help address the revenue challenge
in a meaningful way. In addition, we are
strong supporters of the IRA’s 45Q provision and believe tax incentives are a critical
piece to moving this technology forward.”
Policy: The Key Enabler
In the U.S., at least, where the second
Trump administration has now taken office, experts expect CCS will remain a
critical tool, owing to its bipartisan appeal
and the existing framework of incentives
like 45Q tax credits. But according to
Jessie Stolark, executive director of the
Carbon Capture Coalition, while CCS
deployment continues, regulatory and financial challenges remain key concerns.
“Based on President Trump’s own
statements, it is our understanding that
the EPA [U.S. Environmental Protection
Agency] will be rolling back the Biden-era
March 2025 POWER
www.powermag.com
Clean Power Plan,” Stolark said. “While
the Clean Power Plan recognized carbon
capture technologies as a key pathway to
reducing carbon dioxide emissions from
existing coal and natural gas electric generating units, given the long lead times
of installing carbon capture retrofits, it is
our understanding that the Clean Power
Plan’s use of carbon capture as the best
system of emissions reduction, which
was only finalized in mid-2024, was not
yet a significant factor in utility planning.”
Despite anticipated policy rollbacks, industry demand for CCS remains strong.
“A significant number of existing fossilfuel-powered plants are still exploring installing carbon capture, regardless of the
fate of these rules or other forthcoming
rules to regulate the power sector,” she
noted. The 45Q tax credit remains essential but needs urgent adjustments, she
suggested. “To prevent further erosion
of the credit value and sustain projects
already in the development pipeline, 45Q
must be immediately adjusted for inflation, using 2021 as the base index year
for the dollar figure,” she said. “Adjusting the base index year to 2021 would
provide a nearly 25% nominal value increase to the credit by 2026, consistent
with the real credit levels intended by
Congress through the introduction of bipartisan marker bills in 2021.”
Beyond tax incentives, Stolark
stressed the importance of building market demand for low-carbon commodities. “Congress must expand its efforts
beyond tax-based incentives for carbon
management technologies. This means
building market demand for products
and services derived from carbon capture, removal, reuse, and storage. Growing domestic demand for the production
of low-carbon commodities will foster
greater competitiveness in global trade
and help industries reach commercial
maturity without being wholly reliant on
federal support,” she added.
Stolark also pointed to infrastructure
bottlenecks that could slow CCS deployment. “One critical step forward is to
increase the number of states that can
regulate storage,” she said. “Commercial-scale deployment of carbon management technologies requires a robust
and responsible buildout of an interconnected, nationwide network of carbon
dioxide transport and storage infrastructure.” Permitting reforms, particularly for
CO2 pipelines and storage sites, will be
crucial to accelerating CCS deployment
in the power sector, she said. ■
—Sonal Patel is a POWER senior editor.
29
DIESEL & GAS ENGINES
Reciprocating Engine Technology
Supports Grid Flexibility and
Renewables Integration
Modern reciprocating engines are enabling reliable power generation while
balancing renewable energy growth. Their rapid-response capabilities and
multi-fuel flexibility are crucial to grid stability. Real-world applications and
emerging sustainable fuel options demonstrate how this technology bridges
current power needs with future environmental goals.
Aaron Larson
I
n an era where grid reliability and flexibility are paramount, reciprocating
engine technology has emerged as
a crucial component in modern power
generation systems. These versatile engines, which operate on the same fundamental principles as automobile engines but on a much larger scale, provide
unique advantages that complement
the evolving needs of our electrical infrastructure. Their ability to start quickly,
adjust output rapidly, and operate efficiently across varying loads makes
them incredibly valuable assets in a grid
increasingly dependent on intermittent
renewable energy sources.
The integration of reciprocating engines into power plants (Figure 1) addresses several critical challenges
facing today’s electrical grid. Unlike larger combined cycle gas turbine (CCGT)
plants that may take hours to reach
full capacity, engines can achieve full
power within minutes, providing essential backup during unexpected demand
spikes or renewable energy shortfalls.
This rapid-response capability, combined with their modular nature, al-
1. Heber Light and Power, a public power
provider based in Heber City, Utah, operates
a reciprocating engine power plant featuring
Caterpillar technology. Courtesy: Caterpillar
30
lows power plant operators to precisely
match generation to demand, improving
overall system efficiency.
Beyond their operational flexibility, reciprocating engines represent a bridge
between traditional and future power
generation paradigms. Their ability to
run on various fuels, including natural
gas, biogas, and hydrogen blends, positions them as adaptable assets in the
transition toward cleaner energy sources. As utilities work to balance reliability with environmental responsibility,
engines provide a practical solution that
supports grid stability while accommodating the growing integration of renewable energy resources.
Engines Fill Multiple Roles
“The integration of intermittent renewable energy resources to the power grid
is still a challenge for our customers,”
Michael Fiedler, senior business development manager for the Power segment
with MAN Energy Solutions, told POWER. “Here, our gas engine power plants
are an ideal match to close the gaps in
the energy supply by balancing the fluctuations caused by intermittent renewable energy resources. We are convinced
that flexible and decentralized, gas-fired
power plants will play a decisive role for
a secure power supply on the pathway
toward 100% renewable energy.”
Fiedler said an increasing number of
combined heat and power (CHP) plants
is already relying on gas engine technology. “Especially in Germany we are actually leading in gas-engine-powered CHP
plants with numerous projects in cities
such as Chemnitz, Frankfurt an der Oder,
and Schäbisch-Hall. Especially in regard
to the decision to phase-out coal in Germany, these gas-fired CHP plants will
gain importance since they use resourcwww.powermag.com
es more effectively—with high overall
efficiencies of over 90%—and consequently emitting less CO2,” he said.
Gas engines are also an ideal match
for the power requirements of data centers. These applications especially need
a reliable and flexible power supply in
order to ensure a very high availability.
Further integration of renewable energies into the grid, leading to fluctuations
in the power supply, can result in the requirement for a data center to temporarily reduce its power consumption from
the grid. In these cases, a gas engine
power plant can be ramped up and down
quickly to compensate for fluctuations in
the energy supply. By doing so, the use
of renewable energy can be maximized
at all times, keeping costs and the carbon footprint as low as possible while
ensuring a reliable energy supply.
Meanwhile, a gas engine power plant
is also an excellent option for non-gridconnected data centers. Engines are a
proven and reliable technology that can
provide the necessary flexibility for artificial intelligence (AI) data centers, which
are expected to have a fluctuating load
profile. Furthermore, if the data center
gets a grid connection after-the-fact, the
power plant can be used for providing
grid services.
“For example, the U.S. is currently the
country where the most data centers
are being planned and built worldwide,”
Fiedler said. “Data centers in the U.S.
currently require about 25 GW of power
generation capacities. It is estimated
that this will rise to 47 GW by 2030. In order to meet this demand, the necessary
investments in the energy supply are estimated at around $50 billion. Gas engine
power plants play an important role here
to secure the supply at any time of day
and in any weather.”
|
POWER March 2025
DIESEL & GAS ENGINES
2. Four 20V35/44G TS gas engines with a total capacity of 48 MW were supplied by MAN
Energy Solutions for a recently built power
plant in the Indonesian city of Cicarang. Courtesy: MAN Energy Solutions
Fuel Flexibility
Natural gas remains the primary fuel for
most reciprocating engine power plants,
offering relatively clean combustion and
widespread availability through existing
infrastructure (Figure 2). However, the
true value of these engines lies in their
ability to operate on multiple alternative
fuels, often with minimal modifications.
In addition to pipeline natural gas and liquefied natural gas (LNG), many engines
can be designed to run on petroleum
gas from oil production, biogas from
landfills or wastewater treatment plants,
synthetic gas from biomass gasification,
propane as a backup fuel, crude oil and
heavy fuel oil (HFO) in certain models,
hydrogen blends (typically up to 25% hydrogen with natural gas), mine gas from
coal operations, and field gas from oil
and gas operations.
This fuel flexibility is crucial for several
reasons. First, it provides energy security
and reliability. If one fuel source becomes
unavailable or cost-prohibitive, plants can
switch to alternative fuels with minimal
downtime. This is particularly valuable in
regions with uncertain fuel supply chains
or during natural disasters that might disrupt primary fuel delivery.
Second, it enables plants to take advantage of market opportunities. When
prices fluctuate between different fuel
types, operators can switch to the most
economical option, helping to maintain
competitive electricity prices for consumers. This ability to arbitrage between
fuels can significantly impact a plant’s
operational economics.
Third, fuel flexibility supports environmental goals and regulatory compliance.
As emissions regulations evolve, plants
can transition to cleaner fuels without
requiring complete equipment replacement. The ability to use renewable fuels
like biogas or hydrogen blends also helps
|
utilities meet renewable portfolio standards and reduce their carbon footprint.
Lastly, this versatility makes reciprocating engines particularly valuable in remote
or island locations where fuel availability
might be limited or inconsistent. Plants
can be designed to run on whatever fuel
sources are locally available, reducing dependence on imported fuels and enhancing energy independence.
“Our future-proof gas engines offer a
clear path toward net zero,” Fiedler said.
“Already today, our gas engines can run
on a variety of climate-neutral fuels such
as biogas and synthetic natural gas (emethane) derived from green hydrogen.
Also, our 35/44G TS, 51/60G, and 51/60G
TS gas engines are already ‘H2-ready’
and can be operated with a hydrogen
proportion of up to 25% by volume in
the gas mixture. At the same time, we
are working on future concepts that will
enable hydrogen fueling of up to 100%
as soon as hydrogen becomes available
in large quantities.”
Caterpillar is another engine provider
that has expanded its line of gas generator sets capable of running on hydrogen
fuel. Caterpillar now offers gas gensets
ranging in power from 400 kW to 4.5
MW, each with the capability of blending natural gas with up to 25% hydrogen
by volume.
Real-World Success Stories
Scala Data Centers, a Latin American
platform of data centers in the hyperscale
market, completed a “proof of concept”
(POC) confirming the technical feasibility
of using hydro-treated vegetable oil (HVO),
also known as “green diesel,” in its Caterpillar backup generators. Derived from renewable sources, green diesel undergoes
a hydro-treatment process, transforming
it into a high-quality fuel with reduced environmental impact. Replacing fossil diesel with HVO can decrease greenhouse
gas emissions by up to 85%, according to
Scala, which it said supports the company’s commitment to sustainability. During
the POC, conducted by Scala’s Center
of Excellence in Engineering in collaboration with its operations team and
Sotreq, Caterpillar’s dealer in Brazil, HVO
demonstrated “excellent performance in
backup generators, maintaining critical
resilience of data centers without requiring changes to existing equipment,” the
company reported.
“We closely monitored Scala’s test on
Caterpillar equipment in a pioneering initiative in Latin America,” Mauricio Garcia,
director of Sotreq’s Power Unit, said in a
March 2025 POWER
www.powermag.com
statement. “The use of HVO in generators opens up a universe of possibilities,
in addition to ensuring lower maintenance costs, preserving equipment, and
reducing greenhouse gas emissions.”
However, HVO is three times more
expensive than diesel fuel at the present
time in Latin America. Therefore, the widespread implementation of HVO in Scala’s
operations is not expected immediately.
“We closely monitor market trends, hoping to identify opportunities that could
make the use of HVO economically viable
on a larger scale,” the company said. “We
anticipate that movements like ours will
raise awareness within the supply chain
about the substantial demand potential
for HVO, prompting stakeholders to explore more attractive commercial terms
conducive to its widespread adoption.”
In the U.S., more than 8 million gallons of HVO has been used to generate
power by customers using Cat rental
power solutions supplied by Peterson
Power Systems, the local Cat dealer for
electric power in northern California, Oregon, and southwest Washington. The
Cat rental power solutions using HVO
fuel have been predominantly used by
utilities to supply energy around the
clock during public safety power shutoffs
and after wildfires damaged grid transmission lines in northern California. In
Norway, STACK Infrastructure, a global
developer and operator of data centers,
implemented the use of HVO100—the
purest form of HVO—as a standby power source for a new data center on its
OSL04 campus in Holtskogen (Oslo).​
“We have already implemented power plants with engines operating on biofuels, as our recent contract with French
utility EDF for a 130-MW power plant
on the island of Corsica [France] underlines,” Fiedler said, noting that MAN Energy Solutions is also seeing demand for
engines that can operate on synthetic
fuels derived from electrolysis, such as
green hydrogen, e-methane, and ammonia. “Already today, our engines can be
designed to operate on climate-neutral
fuels like e-methane or be retrofitted at
a later stage, based on availability of the
fuels,” he added. Furthermore, Fiedler
said MAN Energy Solutions is collaborating with partners on two projects, called
AmmoniaMot and HydroPoLEn, to develop advanced hydrogen and ammonia
solutions. Both projects are supported
by the German Federal Ministry for Economic Affairs and Climate Action. ■
—Aaron Larson is POWER’s
executive editor.
31
TECHNOLOGY
Generative AI at the Edge:
Revolutionizing the Power
Industry’s Control Layer
Localized intelligence will reshape energy operations, enabling edge-based
generative artificial intelligence (AI) models to deliver precision, agility, and
control at every layer of power operations.
Rick Kephart
F
or decades, power generation companies have relied on powerful machine learning (ML) tools to drive the
precise operations necessary to supply
the world’s nearly limitless appetite for
electrical energy. Deep benches of highly
experienced engineers, technicians, and
operators would regularly implement,
adjust, and monitor ML tools to provide a
wide array of critical operations enablers:
increased reliability, optimally tuned
closed-loop process control, alarming
and alerting, scheduling, and more.
Today, as demand for energy has
dramatically increased, so too has the
need for powerful tools to help drive operational excellence. However, the deep
bench of personnel needed to implement and maintain those technologies
has not scaled in parallel. In fact, skilled
workers are harder to find than ever, and
power companies are feeling the strain.
Fortunately, another technology has
evolved in parallel to help close the experience gap and drive more efficient, effective, secure, and reliable operations in
the power industry. Artificial intelligence
(AI) is the next evolution of assistive
technology, built on a foundation of ML,
to help organizations accomplish rapid,
productive change in their operations
and maintenance. Today, AI is impossible
to miss. It is in the headlines, mobile devices, the art studio, and enterprise business systems. However, one place AI
technologies are struggling to take hold
is in the control room—or, more precisely, the control layer.
The reticence to integrate AI into control is understandable. Modern AI—particularly, generative AI (GenAI)—is still
a work in progress, and companies are
wise to be thoughtful when implementing unproven technology in their control
environments. Process control requires
safe, stable, reliable operation 24/7 to
32
reduce the risk of safety incidents and
costly production loss. Moreover, much
of a company’s most critical intellectual
property resides in the control layer, so
organizations are typically cautious with
its exposure.
However, there can be little doubt
that one day GenAI will impact process
control, even if nobody can say how just
yet. That delay, however, does not mean
understanding and pursuing strategies
around the implementation of AI is useless. Quite the contrary, when GenAI intersects with control, the step change in
operations is likely to have a significant
impact, and those ready for it will be able
to capitalize on game-changing competitive advantage for their organizations.
Considering some of the potential
paths for the future of GenAI in control,
as well as the ways it might be implemented, has real value, if only to help
companies take the small steps necessary today to prepare a less complex and
cumbersome path for achieving massive
gains tomorrow.
How Is GenAI Different?
Though the world has been hearing
about AI for years, many people do
not yet fully comprehend that GenAI is
something new. GenAI presents, at the
very least, an appearance of the ability
to reason, allowing it to make inferences
between data points without needing
large amounts of custom software. Ultimately, this capability manifests as the
ability to generate original content—
which in turn feeds the original engine,
expanding and strengthening it.
Most people have seen at least a small
example of how this works. Asking a GenAI chatbot a question, either via a web interface or an enterprise business system,
will nearly always result in some answer,
whether it is about tree frogs or thermocouples. Those results are a step change
www.powermag.com
in AI capability for two key reasons.
First, the user can ask a question of
the GenAI in natural language, making it
much easier to be specific and to continually refine the logic of the query. Second,
it is tremendously efficient because nobody needed to manually code the ability
to ask that specific question and provide
an answer. Using its large language
model (LLM), the AI can parse, analyze,
research, evaluate, and respond in natural
language—or, where desired, in a variety
of natural languages—in seconds.
Where the reasoning capability truly
gains power, however, is in the capability
to programmatically prompt AI models to
empower direct interaction with applications. Today’s programmers are already
using these prompts, along with the
appropriate application programming interfaces (APIs), to drive new capabilities
with dynamic AI-driven data enrichment
and content generation.
Still, the transparency of how generative AI arrives at its conclusions and recommendations is often limited, making
it difficult for operators to fully trust or
validate its outputs. This highlights the
need for robust validation mechanisms,
human oversight, and ongoing research.
The Challenges of GenAI in Power
Operations
The potential of GenAI is tremendously
exciting, but using it in power generation
is not as simple as connecting a large,
public GenAI model to the control system. In fact, that very sentence likely dramatically raises the blood pressure of any
engineer or operator who reads it. One of
the reasons for that trepidation is because
large, public GenAI models must operate
in the cloud to provide the necessary processing power and storage to manage
their massive LLMs—and few operations
teams have any willingness to connect
their control systems to the cloud.
|
POWER March 2025
TECHNOLOGY
There are a couple core reasons for
this hesitancy. First, the cloud, regardless of cybersecurity protocols, is a
shared space. Connecting the control
system and its operational data to a public space immediately puts an organization’s intellectual property at risk, along
with its continuity of operation for critical systems. While unlikely on the most
secure platforms, data breaches are possible on absolutely any shared platform,
making the risk far too high for most operations teams to tolerate.
In addition, North American Electric
Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) regulations
are strict and challenging to follow even
on a local level. While it is likely possible
to create a NERC CIP compliant connection to a public GenAI model, the complexity, risk, and limitations would make
the process more cumbersome and
costly than it is worth.
Moreover, accomplishing such data
egress would likely require data diodes
or other technology to move the data to
a data lake where it could be consumed
by the AI engines. Such a process would
be far too slow to impact operations at
the control level, and it would also result
in no clear path for moving the data back
to the control layer.
Ultimately, many organizations find
themselves stuck. They want to take
advantage of the benefits of GenAI to
support and upskill their limited and inexperienced staff. They realize they need
powerful AI models and GenAI support
to drive advanced automation, but they
cannot safely and efficiently take advantage of those tools in the technology
layer where they would be most useful.
GenAI Benefits Bring Real Value
While implementing GenAI at the control
layer appears to be an uphill battle, there
are very good reasons automation solution providers are continuing to pursue
it as an option. GenAI has the potential
to deliver tremendous value to process
applications if industry can find a way to
make the solution work in a reliable and
secure manner.
First and foremost, GenAI has the capacity to combine operational diagnostics more effectively and efficiently with
advanced pattern recognition to help
deliver better overall visibility of both
asset and equipment health, along with
process optimization. As more experts
leave the industry, taking their decades
of institutional knowledge with them,
newer and greener operators and tech-
|
nicians will rely heavily on technology to
help them continually achieve operational excellence. Not only does GenAI have
the capacity to raise the bar on what operational excellence truly means, it also
provides decision support and upskilling
to help operators reach this goal faster.
Moreover, one of the key benefits of
LLMs and the natural language capability inherent in GenAI is the capacity for
operations assistants to help users perform at their best. AI models have the
capacity to consume operations procedures, control strategies, and graphics,
and act as trusted advisors, helping operators understand what is happening in
the control system, and providing recommendations that users of nearly any
skill level can evaluate and implement
for better performance.
GenAI tools can even be used for automated health monitoring, cybersecurity and intrusion detection, and creating
control sheets or graphics to save engineering time and effort. The capabilities
are limitless and exciting, but they must
be implemented first.
New Strategies May Help Navigate
Complexity
So, if operators cannot connect their
control systems to cloud hosted GenAI
engines, how will they ever reap the benefits that could deliver a paradigm shift in
operational efficiency? The key is thinking
outside the box, or, perhaps, outside the
cloud. While GenAI grew up on a single,
large, open AI model, that is not the only
option. As the technology advances, and
if teams are willing to narrow the scope of
their individual AI engines, they will likely
be able to run many smaller models on
local platforms right at the control layer.
These types of GenAI models can capture
qualitative behavior to augment controls.
This capability will likely be most useful
during abnormal conditions where there
may be multiple failures that potentially
cause the base control system to have
difficulty maintaining control.
Already today, some of the pre-trained
smaller GenAI models are very capable
out of the box. These models are then finetuned for a specific control application by
using either generic equipment information, or even specific asset information.
For example, a small GenAI model may
be trained on the basic concepts of how a
gas turbine works, or it may be specifically
trained to understand the specifications,
thresholds, limitations, and core design
of an individual model of gas turbine produced by one manufacturer.
March 2025 POWER
www.powermag.com
1. Small, pre-trained generative AI models
can be fine-tuned for specific control actions
and assets. Courtesy: Emerson
In fact, it is highly likely that the power
industry will see companies invest in
general models that understand behavioral characteristics for particular applications—such as hydro, gas turbines,
batteries, solar, wind, or even the control
system itself—that are further tuned
onsite with information unique to the
control layer’s specific equipment and
configurations (Figure 1).
As these smaller models rise in popularity, teams will be empowered to deploy
GenAI solutions that are more focused on
their unique circumstances. This type of
solution eliminates the risks of cloud technology and is more focused on the exact
operations it is designed to perform.
As a result, it is simpler to manage and
maintain, and easier to protect with AI
guardrails. For example, the more limited
the scope of the training, the less likely it
will be that the AI will run out of answers
and make things up that are irrelevant
to the existing configuration. Moreover,
these solutions will be easier to secure,
using the same NERC CIP layers of protection the operations team already employs.
A Vision for a GenAI Future
AI is still very new, and there are too
many unknowns to perfectly predict how
operations teams will most effectively
implement GenAI solutions to support
their operators as power systems continue to increase in complexity. Technology—infrastructure in particular—will
continue to change to support new options and new configurations for AI in the
control room.
However, the small GenAI models supporting this evolution are just over the
horizon, and those developed with automation solutions in mind will help today’s
power providers get a foot in the door with
a technology that will shape the future of
energy generation and distribution. ■
—Rick Kephart is the vice president of
technology for Emerson’s power and
water solutions business.
33
MARNIE SURFACEBLOW
Deploying New Technologies May
Also Produce New Challenges
As science and technology advance, so too does plant engineering. Ensure you’re
ready for the challenge by staying informed.
Una Nowling, PE
I
t was only a half-hour call, but Marnie Surfaceblow, vice president of
Surfaceblow & Associates International, was worn out. She rested her
head on her arms at the conference
table, muttering, “I’m getting too old
for this. I feel … exhausted.”
She sat next to her lead field engineer, Maya Sharma, who was enjoying
a hot cup of chai while reviewing process flow diagrams of a carbon capture system (CCS). She’d only heard
half the conversation between Marnie
and her peer vice presidents, so she
asked, “Ma’am? What was their objection to this project?”
Raising her head, Marnie seized
the opportunity to soliloquy. “Nobody
denies troubleshooting a first-of-akind CCS is challenging. Engineering
is supposed to be challenging! Bringing new technologies into practical
manifestation, balancing the environment, ethics, efficiency, effectiveness,
and economy! Grandpa Marmaduke
wouldn’t have quailed from this challenge—he’d have rolled up his sleeves
and told the others ‘Bilgewater! If you
nervous Nellies are so focused on
profits, why didn’t you go to business
school!’ ”
Laughing at Marnie’s impersonation
of the legendary Marmaduke, Maya
asked, “Did you win, ma’am? We can
work on this project?”
Marnie threw back her head and
laughed. “Yes! We’ll sail their stranded plant and CCS from the Sargasso
Sea of constant forced outages out
into the high seas of safe, reliable,
profitable, clean generation! We
won’t even need the full week onsite—we’re solving this problem in
three days!”
A minute of silence passed, then as
they heard the sound of the plant staff
approaching their conference room for
the kickoff meeting, Maya said, “They
gave us three days?”
“They gave us three days,” Marnie
confirmed.
34
Understanding Plant Operations and
Emissions
The e-mail requesting their help had
given the basic facts. Wolverine Power
Unit 1, a 500-MW coal power plant, was
located on the shores of Lake Michigan in northeastern Wisconsin. With
easy port access and connected to two
large rail lines, since 1986 the plant had
burned coals from high-sulfur bituminous to low-sulfur subbituminous. Unlike many aging power plants, this one
was built right. Major forced outages
were rare, with an average availability
of more than 88% over most of its life.
Then, in 2020, future CO2 regulations
led to a hard decision for Wolverine
Power: switching to natural gas, adding
a CCS with 90% CO2 removal efficiency, or shutting down.
“The owners gave us three options,
but we sold them a fourth,” said Plant
Manager Heinrich Altergott. “Wisconsin’s 45% forest, and we’re surrounded
by lumber mills, kraft paper plants, and
companies all around the Great Lakes
shipping biomass pellets. But given the
great condition of the plant, we looked for
the most flexible future option. We modified the boiler systems to let us burn up
to 50% natural gas or 50% black pellet
biomass with coal, and we designed and
worked with a reputable OEM [original
equipment manufacturer] to make a CCS
that was as reliable as possible. However, it’s possible that having too much
flexibility is part of our problem. Dick, can
you explain the specifics?”
“When we designed our system
with the OEM, we took every lesson
learned we could to create a customized CCS that would let us run for another 40 years if they let us,” began
Richard “Dick” Anderson, the lead
environmental engineer. “Our system takes lessons learned from every
amine CCS ever built, so we could try
avoiding as many problems as possible. We start by reducing the CO2
production by leveraging natural gas
and black pellet biomass as much as
the economics allow. The CCS has
www.powermag.com
tight requirements for pre-scrubbing
the flue gas, so we use low-NOx burners, overfire air, and an SCR [selective
catalytic reduction system] to reduce
NOx by 99%. Lime sorbent is injected
downstream of the SCR to reduce sulfur trioxides, and SO2 is removed by a
wet scrubber downstream, giving us
a 99.5% SO2 removal efficiency. The
lime we inject, along with fly ash, is
captured in an electrostatic precipitator
[ESP] at 99% efficiency.”
As Dick paused, Heinrich added,
“That 99% efficiency is less than the
specification for our CCS, but it also
has to work with our activated carbon
injection [ACI] system that helps us
capture about 95% of mercury emissions. Amelia, can you talk about our
CO2 regulations?”
“Our permit limit is 0.101 ton/MWh,
which was based on 90% CO2 removal
when burning subbituminous coal. If
we burn 50% natural gas, our required
CCS removal efficiency is 87%. I know,
you’d think it would be lower, but the
math works,” explained Amelia Palmer,
the plant’s operations manager.
Raising her hand, then speaking,
Maya asked, “Ma’am, one assumes
your CO2 limit is on a gross generation
basis?” Receiving affirmation of her assumption, Maya then asked, “What is
your required removal efficiency when
burning black pellet biomass?”
Amelia nodded. “Thankfully the
black pellets are considered net CO2
neutral, and …” noting that Marnie
was about to forcefully interject, Amelia added, “We know black pellet production isn’t really carbon-free, but our
permit says it is, so that is our reality.
Given the reduced performance of our
CCS, we burn as much of the black
pellets as possible, depending on the
market price.”
“And, of course, that is the problem—our reduced CCS performance,”
Dick interjected. “Since we first started the system, our CCS hasn’t been
able to scrub greater than 84% of our
CO2. That means we’re typically burn-
|
POWER March 2025
PARTNER INSIGHTS
S P O N S O RE D CO N T E N T
Partner Insights
MD&A: Your full-service, OEM-alternative
Mechanical Dynamics & Analysis (MD&A) provides power
generators around the globe with a full-service, OEM-alternative for services, parts, and repairs for Gas Turbines, Steam
Turbines and Generators.
For over 40 years, our commitment to excellence has earned
customer trust for all turbine-generator needs. We focus on
delivering consistent quality and value with fast response, superior communications, and innovative solutions.
MD&A is easy to work with. We provide immediate access
to expert help when you need it, where you need it. Around
the corner or the globe, we ensure prompt, thorough communication and follow-through. For every repair job, large
or small, the speed and effectiveness of our response team is
matched only by the depth and breadth of our engineering
expertise.
Find out today why so many power generators use MD&A to
maximize operational effectiveness.
Visit www.mdaturbines.com
We extend the life of aging steam or gas turbine rotors and
components, along with generator fields and stators. Our
experts have knowledge of many different OEMs around the
world. MD&A knows how to solve your turbine-generator’s
most complex problems and will get you back online quickly.
|
March 2025 POWER
www.powermag.com
35
MARNIE SURFACEBLOW
ing anywhere from 16% to 50% black
pellets. We suffer a substantial mill
and primary air fan derate with the
black pellets, so we’re usually limited
to about 75% of our coal-based maximum generation.”
“And given your CCS requires 18%
of your electrical generation and about
11% of your steam heat, your full output
is already reduced roughly 25%,” Marnie calculated. She thought briefly, then
continued, “What I’m hearing is you only
meet your CO2 limits by operating the
plant at about half your coal-based net
generation. That’s not a great situation,
but,” Marnie looked around the conference room quickly, “that’s not why you
called us here.”
As the plant manager, detailing the
task was Heinrich’s job. “Our CCS has
never come close to 90% removal efficiency, but when we first brought it
online at least it was stable. Barely six
months into its operation, however,
the CCS began a cycle of gradually losing efficiency until we’re forced into an
outage. We clean out the system, then
drain the system and recharge it with
fresh reagent. Things work well for the
first few weeks after each outage, then
slowly but steadily the efficiency loss
comes back to stay.”
“As a result,” continued Amelia,
“we’ve never run longer than about
three months between CCS outages.
We can slow the decline by burning as
much natural gas or biomass as possible,
but the market price of each fuel can be
prohibitive. And we’re not sure it even
does any good. Even when burning the
maximum possible biomass, it almost
seems to make problems worse!”
1. The plant manager passed out charts
showing how carbon capture system (CCS)
performance regularly declined over roughly
three months of operation. Source: POWER
36
Dick passed around printouts of the
phenomenon (Figure 1), showing arrays of trendlines mapping every major
performance output as the CCS CO2
removal efficiency dropped from nearly
84% post-outage, until the next shutdown between 60% and 70%.
After reviewing the charts for several minutes, Maya asked, “Sir, ma’am,
could the underperformance of the ESP
be the root cause of your CCS problem—say, from accumulation of ash in
the amine? And what is impacting the
ESP performance most?”
“Adding to Maya’s question, I have
one too,” Marnie said. “Why didn’t you
use a fabric filter baghouse, either to replace your ESP or as a gas polisher?”
Maintenance Supervisor Willie Hoppe
spoke up for the first time. “When the
plan was changed to include biomass
fuel, we started to worry about fires
from unburned fuel carryover. But even
without the biomass, our ACI system
was already dumping lots of unburned
carbon into the flue gas, and that alone
nixed planning for a baghouse. The carbon needs residence time to oxidize the
elemental mercury in the flue gas, but
we only have a very short ductwork run
between the air heater outlet and the
ESP inlet. This led to that strange drain
trap-shaped ductwork. And just like a
drain trap, we get a lot of carbon fallout
in the bend, meaning we inject two to
three times the carbon necessary, and a
lot of that ends up in the ESP.”
“But sir, from my understanding you
do achieve the mercury limits required
by regulation as well as the CCS design,
yes?” asked Maya. Upon receiving affirmation of both, she then asked, “Are
you certain the poor ash removal performance is not the cause of your CCS
amine deactivation?”
“Industry experience told us ash in
the CCS primarily caused problems by
plugging amine piping, especially heat
exchangers. Our OEM proposed using
larger heat transfer pipes with extra fin
area, and it worked. Even with the ash
levels in our circulating amine system,
we never miss our target operating
temperatures.”
A few more questions took them to
the start of lunch. While the plant staff
talked amongst themselves, Marnie
quickly scrolled through some research
papers on her laptop, closed it with an
authoritative snap, and stood to address
the room. “Thank you all ever so much.
Let us know anything else that comes
to mind. Heinrich, can you get your fuel
www.powermag.com
buyer to come talk with us for just a
wee minute?”
Fueling Speculation
As she drove the rental car into the
woods surrounding the power plant
(Figure 2), Maya observed, “Ma’am,
I have learned much of your Scottish
heritage via observation. Thus, I am not
surprised that ‘a wee minute’ is actually
very many minutes.”
“I thought you said we were going
into town for lunch, not driving two
hours to our biomass supplier!” exclaimed Emily Altergott, Heinrich’s niece
and the plant’s fuel manager, who was
tightly packed with miscellaneous test
equipment in the back of the rental car.
Putting on a serious and conspiratorial attitude, Marnie turned to face
their reluctant passenger. “Ms. Altergott, here’s the mission: We need the
straight dope on the feedstock for your
black pellets. Normally, biomass suppliers won’t give me any information
because I’m not their customer. As the
fuel buyer, Emily, you are the linchpin to
our success. You are the decider. And
right now, that makes you the most important person in the world. So, first,
the mission, then, the feast.”
Eyeing Marnie warily, Emily kept her
composure through the second hour of
travel to Hodag Mills, the black pellet
supplier for the plant. At first Marnie’s
strategy proved sound, as within five
minutes of entering Hodag Mills headquarters, all three women were seated
with company president, Freddie Koch,
in a luxurious office. “Well, shoot, you
didn’t have to bring Emily all the way
out here. I knew your father and your famous grandfather, Ms. Surfaceblow. He
did us a good turn, so we always have
time for the Surfaceblow family!”
Crossing her arms, Marnie gave Freddie “The Look,” and said, “If you know
my family, Freddie—may I call you Freddie? You may call me Marnie—then you
need to be straight with me, because
you know I’ll discover the facts, by hook
or by crook. My question is: Do you use
post-industrial wood in the black pellets
you sell to Emily?”
Freddie looked at Marnie in disbelief, then laughed, “Of course we do.
There are huge supplies of construction
waste, pallet scrap, and even landfill recovery hereabouts. Our contract with
Wolverine Power specifies we can use
up to 20% waste wood by weight in our
pellets. Didn’t you look at the contract
before driving two hours out here?”
|
POWER March 2025
MARNIE SURFACEBLOW
2. A road trip to Hodag Mills, the plant’s
black pellet supplier, provided valuable information to help solve the CCS performance
problems. Source: POWER
Trying to maintain her composure,
Marnie sternly added, “That may be
so, but I’d like to review all lab analyses of your black pellet deliveries to
Wolverine Power.”
Freddie again displayed disbelief. “I’ve
emailed every analysis since day one to
Emily. Didn’t you ask her for them? Well,
it’s OK,” he said. Freddie picked up his
phone, tapped on it for a few seconds,
then said, “If you’ll give me your email
address, Marnie, I’ll send a link to the
cloud drive with every analysis.”
As Maya pulled out of the parking
lot, Marnie sighed, turned to face the
stony gaze of Emily in the back seat,
and handed her a gift card while smiling
sheepishly. “This is worth ten ‘Empress
Treatments’ at Xanadu Day Spas,” she
noted. “I hope this will help reduce the
post-mission stress.”
Emily took the card, tucked it into
her purse, and pronounced, “Fine. But
we’re also stopping at that Brazilian
steakhouse on the way back.”
Marnie nodded agreement, pretending not to notice Maya’s smirk.
Finding the ‘Best’ Solution
Early the next morning, Marnie and
Maya met with the plant project team
in the conference room again. When all
the players had arrived Marnie began
her big reveal.
“Some of this is not proven, as we
say in Scottish courtrooms, so we’ll
need to collect ash and reagent samples
for lab analyses and we won’t know the
|
results for a few weeks, but here’s how
Maya and I see the situation,” she said.
Maya took a pen and in her elegant
script drew a flow diagram on the whiteboard. “As happens in life, several small
effects have joined to create a greater
effect. We agree the problem lies in the
amine reagent, but from what cause?
With amine reagent systems, there are
many contaminants that may reduce efficiency over time. Most of these are
not present or implied, but two we believe are likely, which are chromium and
zinc,” Maya suggested.
“Chromium and zinc?” asked Heinrich over the murmuring of the crowd.
“Where is that coming from? We knew
these metals were risks, so we specified no galvanized or chrome steel was
used when the CCS was built.”
“It’s in the biomass itself,” Marnie
replied. “Many of your supplier’s waste
wood lab analyses show high chromium
and zinc content. Zinc comes from bits
of galvanized wire, nails, and screws
from post-construction waste, whereas
chromium is a common wood preservative, along with copper and arsenic.”
“As you burn greater quantities of
biomass, the concentration of chromium and zinc steadily increases in your
reagent,” continued Maya. “These elements chemically degrade the amine,
and since you have no process in
place to remove or neutralize them,
their concentration increases until you
must cease operations and add fresh
reagent.”
Dick asked, “So, because our supplier mixes waste wood with virgin at random times from random sources, does
that explain our variable CCS uptime?”
“Oh … so close, but I’ll give you a
cigar anyway … if only I had one,” Marnie said while pantomiming patting her
pockets. “The zinc and chromium are
mainly carried in with the ash particles
when burning biomass, and there’s several reasons for that. Maya, why don’t
you walk everyone through it?”
Maya continued drawing her process
flow diagram as she spoke. “Problem
first: your ESP is old and was never designed to capture biomass ash. Wood
biomass ash often has high electrical resistivity from its calcium oxide content. I
have not checked, but I do guess you increased your ESP voltage to improve the
collection efficiency, yes?” Seeing a nod
from Willie, she continued. “Problem
second: the surplus carbon in your flue
gas stream from your poorly designed
ACI system greatly reduces the ash elec-
March 2025 POWER
www.powermag.com
trical resistivity. When the carbon loading
is too great, when you rap the ESP plates
to drop the ash into the hoppers, the resistivity can be so small that the dropped
ash can re-attach to the ESP collecting
plates. In short, this creates highly variable ESP performance.”
Marnie jumped back in, “Your lime
additive system could be described as
a passive-aggressive co-culprit. By removing sulfur compounds upstream
of the ESP, they don’t attach to the ash
particles. The adsorbed and absorbed
sulfur compounds not only can make
the ash stickier, but they also improve
its electrical resistivity.” Pausing, Marnie noted, “Since you tend to choose
the black pellet biomass also at times
when the price is lower—presumably
due to having higher waste wood content—you have yet another variable to
contend with.”
The conference room was filled with
a cacophony of conversation, but quieted as Heinrich asked, “What’s the
best solution?”
“Excellent!”
exclaimed
Marnie.
“Most people ask if there is a solution,
but you know there is always a solution,
and want only the best. Maya is drawing
up proposals for further studies to help
us answer that question. Some of the
solutions could include swapping out
your ESP for a fabric filter—along with
redesign of the ACI system to reduce
your carbon spillover. Or possibly using
a smaller fabric filter as a flue gas polisher downstream of the ESP. You could
also change to a different biomass fuel
source. What else, Maya?”
“Sir, other options include regular or
continuous monitoring of chromium and
zinc levels in your amine reagent.” Maya
paused, suddenly self-conscious, then
said, “I have one idea, sir, but I caution
it is first-of-a-kind: employing a bespoke
catalyst downstream of your SCR to oxidize the chromium and zinc, along with
an additive mixed with your activated
carbon to help remove the metals.”
As the three plant leaders and other
staff thanked Marnie and Maya, Heinrich warmly shook Maya’s hand, and
said, “A custom catalyst and additive
for removing chromium and zinc? That
is definitely new, but very interesting.”
Leaning over to pat Maya’s shoulder,
Marnie smiled broadly and quipped,
“Hey, first-of-a-kind plants require firstof-a-kind solutions? Patent pending …”
—Una Nowling, PE is an adjunct professor
of mechanical engineering at the
University of Missouri-Kansas City.
37
ADVERTISERS’ INDEX
Page
Page
Core Natural Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4
corenaturalresources.com
MD&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 35
www.mdaturbines.com
Emerson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
www.emerson.com
Neuman & Esser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
www.neuman-esser.com
Graphite Metallizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
www.graphalloy.com
Sitetracker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
www.sitetracker.com
Harrington Hoists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
www.harringtonhoists.com
Trillium Flow Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
www.trilliumflow.com
MAN Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 2
www.man-es.com
Valmet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
www.valmet.com
MathWorks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
www.mathworks.com
TO ADVERTISE IN
Contact your Sales Representative
for More Information:
Ellen Nyboer | Eastern U.S./Canada
enyboer@accessintel.com | 713-343-1893
CHRIS HARTNETT | Western U.S./Canada
chartnett@accessintel.com | 404-634-5123
PETRA TRAUTES | Europe
ptrautes@accessintel.com | +49 172 6606303
38
www.powermag.com
|
POWER March 2025
EASI-SET VERSATILE PRECAST CONCRETE BUILDINGS
To Advertise in
Classifieds or
Hot Products
Easi-Set and EasiSpan Precast
Concrete Buildings
provide reliable
protection for power
utilities. Built to
withstand extreme
weather, vandalism,
fires, and blasts,
our versatile and
durable, lowmaintenance
buildings
safeguard critical
infrastructure.
Customizable to meet exact specifications, they offer secure
housing for electrical equipment, substations, and control centers.
Designed for longevity, they resist corrosion and can be installed
on piers in flood-prone areas. Trusted across North America, EasiSet ensures power utilities get secure, worry-free solutions for
their essential operations.
precastbuildings.com
QS-300 TUBE CLEANING GUN
Contact:
Ellen Nyboer
Phone:
713-343-1893
Email:
ENyboer@
accessintel.com
The QS-300 Quick Shot®
Surface Condenser Tube
Cleaning Gun is equipped
with state-of-the-art
features and cutting-edge
technology, to minimize
wastewater and outshoot
the competition. When the
touch-activated trigger is
squeezed, air and water
propel Tube Scrubbers,
Coil Tube Brushes, or other
projectiles through tubes
5/8”-1 1/4” (15.9-31.8mm)
O.D. As the projectile
propels forward, the unit’s
in-line pressurized water
system hurls projectiles
through deposits with ease resulting in remarkably clean
and efficient tubes.
www.goodway.com
|
March 2025 POWER
www.powermag.com
39
COMMENTARY
Powering the Next
Electrical Revolution
Rich Stinson
A
s we stand on the brink of an all-electric future in North
America, we find ourselves amidst a monumental
shift—from a reliance on oil, coal, and gas to a world
powered by electricity. This transformation is not just promising; it’s essential.
Electrification is now an undeniable reality. From electric
vehicles and data centers to renewable energy sources,
North America’s appetite for electricity is surging. Today’s society increasingly expects that anything that can be electric
will be electric. However, this enthusiasm must be tempered
by an awareness of the challenges we face in meeting this
growing demand.
Demand Growth Presents Challenges
One of the most pressing issues is the looming imbalance between electricity demand and supply. As we integrate more
technologies and expand our digital landscape, the need for
electric power is escalating at an unprecedented rate. For
instance, data centers, which are vital to our digitally driven
world, accounted for approximately 4% of total electricity
consumption in the first half of 2023. With the rise of artificial
intelligence and the exponential growth of data, projections
suggest this figure could climb to 6% by 2026—a staggering
50% demand increase in just a few years.
The forecasts for future demand vary dramatically. Analysts
and government agencies offer estimates ranging from a 1.3x
to 2x increase by 2050, which means these entities will commit a varying number of key resources to electrification in the
next 25 years. This uncertainty complicates our ability to plan
effectively for the future.
Other Obstacles Hinder Progress
The key to navigating this complexity lies in achieving congruence among four critical components of our electricity system:
generation, transmission, distribution, and demand. If we cannot align these elements, we risk catastrophic failures in our
energy infrastructure.
Several choke points hinder our progress toward this balance. They include:
■ An Aging Grid. Our current electrical grid is not only outdated
but also fragmented, comprised of three major sections and
numerous isolated transmission areas. This disjointed system prevents the sharing of excess supply across regions,
especially during peak demand.
■ Regulatory Hurdles. A staggering 75% of new generation
projects fail to reach commissioning due to complex permitting processes. On average, these projects can take up to
four years to gain approval, stalling critical advancements.
■ Equipment Shortages. Key components of our electrical
system, such as switchgear and transformers, are experiencing significant shortages, with lead times stretching
40
from one to two years. This scarcity can delay essential
upgrades and expansions.
■ Workforce Challenges. The U.S. is facing a troubling trend in
its electrical workforce. While we add around 3,000 electricians annually, we lose approximately 10,000, resulting in a
net loss of 7,000 skilled workers each year. This workforce is
crucial to implementing the changes we need.
Moreover, the industry has historically functioned in silos—
utilities, regulators, manufacturers, and contractors often lack
effective communication and collaboration. This disconnection has resulted in visible cracks in the system, evident by
increasing instances of blackouts and brownouts worldwide.
The urgency of these issues cannot be overstated; by 2035,
we could face a significant imbalance in our energy system.
However, the challenges we face are not insurmountable. A
holistic approach that brings together all stakeholders—industry leaders, government entities, and the workforce—can help
us overcome these obstacles.
Collaboration Is a Key
A notable example of collaborative effort emerged in May last
year with the formation of a strategic alliance among key industry organizations, including the National Electrical Manufacturers Association (NEMA), National Electrical Contractors
Association (NECA), National Association of Electrical Distributors (NAED), and the National Electrical Manufacturers
Representatives Association (NEMRA). This coalition aims to
address the pressing challenges of re-electrification and leverage opportunities for the benefit of future generations and
the economy.
To achieve a balanced energy future, we must prioritize investment in the grid, streamline permitting processes, expand
manufacturing capabilities, and enhance workforce development. At Southwire, we are committed to engaging with experts and partners to play our part in this vital conversation.
Investing in manufacturing capacity is essential. We need to
ensure the necessary products and solutions are available to
meet the demands of an electrified future. Innovation is crucial;
exploring new technologies and building value-added solutions
will help us stay ahead of disruptive trends.
As we navigate this critical transition, it’s important to remember that the evolution of energy systems is a continuous
journey. We are at the threshold of a new era—one that promises to enhance the lives of millions. However, realizing this potential requires unity and collaboration among all stakeholders.
We must act with intention—not just for our own interests,
but for the betterment of North America and the world at large.
This is an unprecedented opportunity for all businesses to contribute to a sustainable future for our families and future generations. Together, we can power the next electrical revolution. ■
www.powermag.com
—Rich Stinson is president and CEO of Southwire.
|
POWER March 2025
October 29-31
Denver, CO
Where the Entire Power Community Connects
Join stakeholders from the entire energy
value chain — from production to distribution
to end use — and be part of the idea-sharing
that shapes our clean energy future.
Be part of the dialogue that powers
progress. Register today.
REGISTRATION IS OPEN!
www.experience-power.com
PRESENTED BY:
46428