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Most people associate cleaner air with reductions on chemical use. In the case of nitrogen oxide emissions. however, cleaning up the air could turn into a bonanza for some chemical producers.
By May 2003, hundreds of coal-fired power plants in 22 states east of the Mississippi will be required to reduce their emissions of nitric oxide(NO) and nitrogen dioxide(NO2)-known collectively as NOx-by up to 85% over current levels. Many of these plants will be using NOx removal systems based on ammonia, urea, or elemental phosphorus.
Robert McIlvaine, president of McIlvaine Co., a consulting firm in Northbrook, Ill., says the NOx reductions are required by laws and agreements that have their roots in the Clean Air Act Amendments of 1990 and only now are coming into play after years of legal wrangling between the Environmental Protection Agency and the utility industry.
NOx created during the burning of coal can react with volatile organic compounds in the presence of heat and sunlight to form ozone. EPA maintains that NOx from Midwest power plants travels east and contributes to ozone problems in Northeast cities. The power industry disputes this scenario but, failing so far to make its case in the courts, is preparing to meet the new standards or risk penalties for noncompliance.
The technique most utility companies are pursuing is the reduction of NOx to nitrogen and oxygen using ammonia or urea. The chemistry behind this reaction is easy, but the price of carrying it out in huge generators is nit. McIlvaine estimates that the power industry will spend nearly $11billion in the next five years, and more than $25 billion in the nest 20years, on NOx reduction equipment.
By itself, American Electric Power(AEP), a large utility based in Columbus, Ohio, expects to spend $1.2billion to meet the 2003deadline. Cinergy, a Cincinnatibased utility, has earmarked more than $700million for NOx reduction.
McIlvaine anticipates that most of this money will be spent on selective catalytic reduction(SCR)systems that work on the presence of a base metal or zeolite catalyst and achieve 90% NOx reducion. These systems are supplied by steam-gen-erating equipment companies such as Babcock & Wilcox and DB Riley.
Producers of ammonia and its main derivative, urea, are poised to benefit from abatement spending as well-at a time when the nitrogen chemicals industry is suffering from stragnant demand and high natural gas prices.
McIlvaine predicts that U.S consumption of ammonia and urea in NOx reduction will reach 1.5 million tons of ammonia last year, mostly in fertilizer and chemical manufacturing applications.