Crown Capital Eco Management Conversion from Coal-Fired Boilers to Natural-Gas Boilers in Heats Up http://crowncapitalmngt.com/blogpdf/conversion_from_coal.pdf
Last year, the haze in the atmosphere encouraged many people to implement the “coal-to-electricity” conversion plan. According to a China Securities newspaper report, the present demolition of coal-fired boilers has reached a substantial level in its implementation.
Beginning in the second quarter when the government enacted its coal-fired boiler demolition act to prevent excessive pollution, the coal-fired boiler “annihilation” program has extended into many areas. In the context of energy-saving environmental protection, “coal to electricity” will become the big trend for the next few years. As the alternative to coal-fired boiler, gas boilers are expected to usher in a tremendous growth. On May 13, Zhengzhou City Hall stopped the operation of a coal-fired boiler in the Yutong Bus Company by removing the 10-ton steam-boiler system. It also decided that by the end of next year, the city’s 263 coal-fired boilers will be completely demolished and converted.
In Beijing, the “coal to gas” project has entered the construction phase. Beijing Gas Group General Manager Li Yalan recently disclosed to the media that by the end of 2013, Beijing City within four districts will be coal-free and by 2015 six districts will be added. Facilitating the conversion from coal gas to natural gas boiler, the plan is to divide Beijing this year into 3 groups of 93 coal-fired boiler areas. In the view of many, coal is seen as the culprit in bringing about hazy weather which is expected to rise even more sharply. As an example, Zhengzhou city’s monitoring data show pollutants mainly came from coal dust (41%), PM (28%) and motor vehicles (24%). Zhengzhou city’s energy structure is still dominated by coal. Coal use in 2012 reached 35,000,000 tons, which is 73% of the total fuel use.
The City Hall issued ”The blue sky” White Paper incorporating the proposed objectives of the project wherein coal-fired boilers will switch to cleaner fuels such as natural gas as an emergency measure. Exhausts from gas boilers contain much less pollutants than coal-fired boilers. According to Li Yalan, converting to natural gas in operating boilers will reduce NO2 emissions by 60% and sulfur dioxide emissions drastically by 99.5%. In addition to cutting down pollutants, heating efficiency will be substantially improved. Currently, the heating efficiency of coal-fired boilers is 60% to 85% while that of gas-fired boilers is over 90%. Beijing’s overall conversion into the usage of gas boilers will increase heating efficiency by 30%. Beijing city hall officials will also look into the improvement of heating subsidies. This will encourage residents to choose clean energy.
China Securities News reports said that from the first two quarters of 2013, aside from Beijing, Zhengzhou, Shaanxi and Xi’an, Lanzhou City, Taiwan has also replaced its coal-fired boilers. Lanzhou city construction, environmental protection, municipal and other departments are jointly carrying out trials for its urban coal-fired boiler renovation project by dismantling 83 Taiwan steam boilers, accounting for a total dismantling by 40%. Xinjiang Urumqi will also shift from coal to gas as part of its people’s livelihood project, part of its reconstruction project dubbed “priority among priorities in beautiful Xinjiang”. In Tibet, dozens of heating stations are also actively carrying out reconstruction of gas boilers as the deadline for complete conversion nears.
Natural gas boilers are expected to experience an upsurge in sales. Research data on the growing energy and natural gas industry, according to analyst Huang Qing of the China Securities News, will accelerate the phasing-out of coal-fired boilers into gas boilers. Governments around the world are seen to complete in the move to reduce carbon emissions from the current levels. Together with the rest of the “oil to gas” and “coal to gas” conversion, the directive is expected to usher in a great increase in compliance.
Yutong Bus Company told the China Securities newspaper reporter that in response to city hall’s “blue sky” project, the company will accelerate its conversion from coal-fired boiler heating. Four sets of 10-ton coal-fired boilers will be demolished and replaced with 3 sets of 20-ton natural-gas boilers. They expect to be finished before the end of 2013. The other 2 sets of 25-ton coal-fired boilers will be completed in 2014. Yutong Company equipment safety director Li Zhihui told the media that the company expects to spend more than $20,000,000 for the conversion into natural gas boilers in two years’ time.
The replacement of coal-fired boilers brought good news for the new-energy boiler manufacturing industry. The China Securities News reporter said that Beijing Taikang boiler company expects to experience a rise in sales of boiler products of all types this year. However, previous product sales declined significantly for coal-fired boilers. Production of natural gas boilers showed significant growth trends. Hangzhou Boiler Co.’s representative told the China Securities Journal that natural gas boiler production company can supply the entire boiler output by 50% as natural gas boiler sales in the country accounts for a large chunk of the market. With the West-East gas pipeline project already ongoing, the city’s natural gas power station can expect to have enough supply of good quality natural gas for boilers. The company’s natural gas needs is also expected to increase tremendously.
The optimism in the use natural gas boiler will help increase sales and further strengthen the conversion program. Hangzhou Boiler Company explained in the report that with the concerted efforts to prevent the rapid increase of atmospheric pollution, natural gas power generation opportunities will help increase the orders for the company’s waste-heat boilers, particularly gas-turbine-powered waste-heat boilers. The giant power-station boiler parts manufacturing enterprises, Run-Chuan, revealed to the China Securities newspaper reporter that although the demand for natural gas boiler parts are relatively low at present, the company’s diversified distribution system will make natural gas boiler components an important business component of the company.
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