Energy RD Performance: Gas Turbine Case Study

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5. ENVIRONMENTAL CONCERNS Growing social awareness of air pollution associated with fossil fuel use has contributed to advances in gas and combined cycle turbines. This section outlines three major ways that environmental concerns prompted gas turbine development. First, regulations drove up the cost of the polluting competitors to natural gas, making combustion turbines more competitive. Second, environmental sustainability affected decisions on fuel choice. Finally, environmental pressures forced gas turbine manufacturers to develop emission reduction techniques for their own relatively clean machines. The U.S. passage of the Clean Air Act in 1970 demonstrated the first major federal commitment to restrictions on power plant emissions. These restrictions had a profound impact on the power generation market. The major fossil fuel for power generation, coal, has significant and pronounced environmental disadvantages. For example, coal combustion leads to considerably more particulate and SO2 production than natural gas combustion. In contrast, natural gas plants have only traces of SO2 (typically between 0.001 and 0.002 lbs of SO2 per MMBtu since sulfur is removed from gas before it enters the pipeline) and negligible amounts of particulates.47 Environmental laws spurred by social concerns turn those environmental disadvantages into economic costs which must be considered by power producers. In effect, environmental regulations turn negative environmental externalities into real costs which can be seen in the construction and operation of power plants, The real costs of environmental legislation manifest themselves through regulation compliance. Gas turbines benefit from the application of these costs because of their “clean” nature relative to coal and nuclear plants. For example, Table 1 shows some typical incremental costs to control SOx, NOx and Hg from coal-fired power plants. If these costs for environmental control were considered part of the fuel costs, it can be seen that controlling coal for SOx and NOx makes its fuel costs roughly equal to that of gas. If Hg control becomes mandated, coal would effectively cost more than gas. 47 Steven I. Freedman, “The Role of Natural Gas in Electric Power Generation 1990-2020,” MIT Energy Laboratory Conference: Energy and the Environment in the 21st Century, March 26-28, 1990, p. DI39. 25

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