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March 27, 1986
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Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 EXECUTIVE SECRETARIAT 11 ~.... . n: 0 + ACTION INFO DATE INIT L 1 CI 2 DDCI X 3 EXDIR X 4 D/ICS 5 DDI X 6 DDA 7 DDO 8 DDS&T 9 Chm/NIC 10 GC 11 IG 12 Compt 13 D/OLL 14 D/PAO 15 D/PERS 16 VC/NIC 17 D/ALA/DI x 18 19 ES x 20 21 22 Remarks To 5: This is to be factored in to the work you have set in motion on this subject. _ x rve Secretary 28 Mar 86 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 CONFID N1IAL 1 86- 1252 27 March 1986 MEMORANDUM FOR: Deputy Director for Intelligence Director, African and Latin American Affairs, DI Director, Office of Global Issues, DI FROM: Director of Central Intelligence SUBJECT: Pyropower In connection with Bob Gates' memorandum of 5 March on economic intelligence and the document entitled, "Proposal for a US Third World Partnership", I send you a letter from John Fitzpatrick who is in Washington working with AID and the World Bank to develop and install fluidized bed boiler plants based on a Finnish process in the Third World countries. This seems to be capable of substantially transforming the economies of less developed countries by enabling them to use a wide variety of indigenous fuels ranging from low grade coal, peat and bagasse. William J. Casey Attachment: Letter from John Fitzpatrick dated 30 January 1986 w/attachments Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 ~ ? utA h@91?tfy JOHN P. FITZPATRICK 30 January 1986 Mr. William J. Casey Dear Bill, I enjoyed talking with you and Sofia last night at the Moroccan Embassy. I get very excited talking about my new business, and usually I get excitement from my aud- ience? I was very pleased that you both understood what I was talking about, and the tremendous influence is going to have on the less-developed countries. I am work- ing very closely with the World Bank and AID, and they are bringing me many many projects.. Moroccoand Jordan are the first two in the "oil shale" program. There are to be 34 more in the "oil shale club". Pakistan will be the first in the "low-grade coal club". There are many others in this category. Jamaica will be the first in the "bagasse club" and there will be 44 more in that cat- egory. El Salvador will be the first in the "coffee bean hill club" and we haven't decided yet whether to lump other or of There are 40 them in with the "r s e hull countries with one or The World Bank and AID have a great arrangement. AID has front end money for feasibility studies, and if the study is positive, the World Bank arranges the financing. The biggest problem at the moment is that AID is cutting the funds rather than beefing them up. Alan Jacobs, Chief of the Energy Division of AID is doing a terrific job in all these countries, but without the necessary funds, s ef- forts forts will have been in vain? The Senate Energy Committee recently concluded that AID's Energy budget should be in- creased to $50 million. It is now about $5 million. AID has so far ignored this recommendation. I have been lobby- ing all I can to get this word across to Peter McPherson, the AID Administrator. I hope we are successful, as a.- little bit of AID money now will place these countries in a position, where they can expand their economies and not depend on foreign aid from the U.S. There will no longer be a need to sneak across our borders to gain the means to support their families. It is also needed to arrest the movement to the left in these countries. Our boiler is the key to success for the Caribbean Basin Program, as well as the other developing countries. Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Joseph Salgado, Under-Secretary of the Department of Energy, recently wrote me saying "the Department recog- nizes that Pyropower is a leader in the area of Circu- lating fluidized bed boilers". We are working very closely with DOE as we have the means to resolve the acid rain problem. We also have the means to resolve the city waste problem and toxic gases. However, the under-develop- ed countries have the most urgent need. If you know Mr. McPherson, or if you know someone who does, would you put in a word in favor of Alan Jacobs and AID's Energy Division. A successful prpgram will be bound to make your Agency's task easier. If we can be of any service to you, please do not hesi- tate to call on me. We would love to help. Ann joins in sending warmest best wishes to Sofia and you. Sincerely, Enclosures: A package of brochures on the Pyropower Corporation and its PYROFLOW technology. A study on the savings that will be made possible by switching from imported oils to indigenous fuels in electric power generation in the under-developed countries. Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 SUBSTANTIAL FOREIGN EXCHANGE SAVINGS WOULD BE MADE POSSIBLE BY SWITCHING CHEAP INDIGENOUS FUELS FOR EXPENSIVE IMPORTED FUELS IN ELECTRIC PO'WE2 PLANTS IN DEVELOPING COUNTRIES. The great majority of developing countries are now using diesel and/or fuel oil for part of their electric power generation. If these countries would switcto a cheaper, non-petroleum pro- duct as a fuel, substantia',)savings could be achieved, if the country were a net importer, or substantial amounts of foreign exchange could be generated, if the country were a net exporter. To accomplish these savings a switch or modification of the ex- isting boilers would be required. If the boilers were switched to a new advanced technology, called PYROFLOW, these new circu- lating fluidized bed boilers would burn everything and anything that was burnable and practically any burnable resource can be used efficiently as a fuel, such as peat, wood, sawdust, .;!sav- ings, coal, coal fines, cuLm, lignite, sugar cane, straw, a?ri- cultural manure, coffee beans, rice hulls, city waste and garbage, tires, tar sands, oil shales and many many more. If it is burn- able it can be used efficiently as a fuel in PYR0FL0'4. ; is hig' unlikely that any developing country would not have at least one possible fuel resource, that is not being used as such a` the present time. Following is a list of all the developing countries, with best available information on the amount of generating ca acity that might be converted to an indigenous non-petroleum f'.;el, and it also shows the huge amounts of foreign exchange that mi=ht be. saved or generated. Tt is based on a World Bank publicatin "1981 ?o:,er/Ererg- i Data for 100 Developing Countries". _t night not be up to date, but it will still serve our purpose here, and that is to demonstrate the validity of the general principle. '+e- gotiations are already under-Nay in varying degrees, and with World Bank help, in India, Pakistan, Dominican Republic, Ecuador, Jamaica, "!exico. El Salvador, Guaterna_a, Morocco and Jordan. will try to reach all of the nations in time. If substitution programs were enacted in the 78 nations listed, the total savings and generations of foreign exchange would amount to over $10 billion annually. COUNTRY TOTAL MILLION TONS OF MILLIONS $ MILLIONS THAT MEGAWATTS OIL EQUIVALENT OF BBLS. CAN BE SAVED Angola 65 0.088 0.64 16 Argentina 777 2.31 16.86 421.6 Bangladesh 190 0.158 1.15 29 Barbados 37 0.087 0.64 16 Belize 21 0.021 0.146 3.65 Bolivia 46 0.047 0.343 8.6 Brazil ? 0.368 2.69 67 Burma 86 0.102 0.75 18.6 Cameroon 85 0.027 0.207 5.2 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Chad 38 Chile ? China ? Colombia ? Congo P.R. 30 Costa Rica 150 Cyprus ? Djibouti 35 Dominican Republic ? Ecuador ? Egypt ? El Salvador ? Ethiopia 51 Fiji 85 Gabon 102 Gambia 8 Ghana 84 Guatemala 140 Guinea 85 Guinea-Bissau 20 Guyana 100 Haiti 88 Honduras 99 India ? Ivory Coast ? Jamaica ? Jordan ? Kampuchea 52 (All Kenya 162 Liberia 60 '.'adagascar 70 Malaysia 437 Mauritania 84 Mauritius 62 Mexico ? Morocco ? Mozambique 170 Nepal 12 Nicaragua 300 Niger 26 Nigeria ? Pakistan (all data Panama ? Peru ? Philippines ? Portugal ? Senegal ? Sychelles 19 Sierra Leone 98 Soloman Is. 8 Somalia . '90 Sri Lanka 130 0.02 o.656 15.3 1.17 0.019 0.04 0.032 0.0275 0.8 0.652 2.565 0.03 0.034 0.059 0.035 0.01 0.014 0.331 0.105 0.008 0.113 0.029 0.072 0.6 0.5 data mixed 0.35 0. 44 o .o84 0.307 0.083 2 0.032 0.067 10.65 0.75 0.113 0.011 0.167 0.32 o.6 mixed toge 0.511 0.479 2.5 2.125 0.192 0.013 0.067 0.005 0.028 0.09 0.146 4.8 112 8.5 0.138 0.292 0.234 0.2 5.9 4.76 18.72 0.22 0.248 0.43 0.25 0.073 0.102 2.4 0.77 0.058 0.825 0.212 0.526 4.2 3.65 but savings 2.56 0.32 0.61 3.65 120 2,800 213 3.45 7.3 5.85 5 150 120 470 5.4 6.2 11 6.25 1.8 2.5 6o 19.2 1.45 20.6 5.3 13.2 105 91.3 be large) 64 8 15.5 6 '6 15 365 5.85 12.5 2.64 o.6 14.6 0.234 0.5 78 5-5 0.825 0.08 1.22 0.234 4.38 ther, but savings 3.73 18.25 15.9 1. 0.095 0.5 0.365 0.204 0.66 1950 137.5 20.6 2 30.5 5.85 109 could be large) 93 4565 400 32.4 12.5 ?91 5.1 16.5 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sudan 150 0.109 0.8 20 Suriname 204 0.192 1.4 35 Swaziland 50 0-037 0.27 6-75 Tanzania 62 0.041 0.3 7.5 Thailand 800 2.66 19.5 487.5 Togo 48 0.021 0.153 3.8 Tunisia 900 0.75 5.5 138.8 Turkey ? 1.6 11.7 300 Uruguay ? 0.26 1.9 47.5 Vietnam ? 0.825 6 150 Yemen A.R. ? 0.525 0.38 9.5 Yemen PDR ? 0.043 0.313 8 Yugoslavia ? 1.573 11.5 288 Zaire 67 0.025 0.183 4.6 Zambia 24 0.025 0.183 4.6 The following countries were not listed as their consumption was too small to justify inclusion, o4 for which no informat- ion was availablee Afghanistan Algeria Benin Botswana Burundi Cape Verde Central African Republic Comoros Dominica Equatorial Guinea Laos Lesotho Malawi Mali Paraguay Romania Korea Rwanda Sao Tome & Principe Syria Uganda Upper Volta Zimbabwe Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 PYROFLOA? UNITS IN OPERATION Gulf Oil Exploration Co. 1983 100% coal & 2500 psig; 670?F Enhanced Oil Bakersfield, CA, USA limestone 50,000 lb/hr 80% quality Recovery Once thru Design Zellstoff and Papierfabrik 1983 100% bark 1250 psig; 968?F Frantschach AG Frantschach, Austria 100% oil 67% brown coal 154,000 lb/hr Ah1strom 885 psig; 895?F Varkaus, Finland 55,000 lb/hr Neste Lampo Oy 1983 100% coal-water 230 psig; 248?F Heating-Firetube Mantsala, Finland mixture 100% coal hot water; 10 MM Btu/hr Design Oriental Chemical Co. 1984 100% petroleum 1580 psig; 970?F Cogeneration Inchon, Korea coke 100% coal 264,000 lb/hr Ostersunds Fjarrvarme AB Ostersund, Sweden 1985 100% peat 100% wood chips 100% coal 160 psig; 355?F hot water; 85 MM Btu/hr District Heating Municipal Electricity Works Kerava, Finland 1985 100% coal & limestone 145 psig; 355?F hot water; 102 MM Btu/hr District Heating California Portland 1985 100% coal & 650 psig; 825?F Cement Co. Colton, CA, USA limestone 190,000 lb/hr Papyrus Kopparfors AB 1985 100% bark 857 psig; 887?F Fors, Sweden 100% peat 100% coal 159,000 lb/hr Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 PYROFLOW UNITS IN OPERATION Start-Up Fuels Application Suomen Kuitulevy Oy 1979 100% peat 1230 psig; 970?F Cogeneration-Retrofit Pihlava, Finland 100% woodwaste 45,000 lb/hr Savon Voima Oy 1979 100% peat 160 psig; 250?F District Heating Suonenjoki, Finland 100% oil hot water; 22 MM Btu/hr Kemira Oy Oulu, Finland Ahlstrom 1981 100% peat 1235 psig; 930?F Sludge Incineration Cogeneration Kauttua, Finland 100% coal 200.000 lb/hr Hyvinkaan Lampovoima Oy 1981 100% coal 160 psig; 355?F District Heating Hyvinkaa, Finland Skelleftea Kraft AB 1981 80% oil 80% peat 100% peat hot water: 85 MM Btu/hr 160 psig; 355?F District Heating Skelleftea, Sweden 100% oil hot water; 22 MM Btu/hr Ruzomberok, Czechoslovakia Hylte Bruks AB 1982 100% peat 960 psig; 840?F Sludge Incineration Cogeneration Hyltebruk, Sweden 80% coal 143,000 lb/hr Oy Alko Ab 1983 100% peat 610 psig; 840?F Process Steam Koskenkorva, Finland 100% oil 55,000 lb/hr Kemira Oy 1983 100% peat 1305 psig; 960?F Cogeneration Oulu, Finland 80% coal 155,000 lb/hr Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 PYROFLOt&F UNITS UNDER CONSTRUCTION 500 psig: 470?F 125.000 lb/hr Metsaliiton Teollisuus Oy 1985 90?,% woodwaste 1215 psig: 896?F Aanekoski, Finland 90% peat 100% coal 70% oil 220.000 lb/hr Central Soya 190 psig: 384?F 88.000 lb/hr General Motors 1986 1001/ coal 8 1460 psig: 955?F Pontiac, MI. USA limestone plant wastes 300.000 lb/hr Espoon Sahko Espoo, Finland 145 psig; 355?F hot water; 273 MM Btu/hr District Heating Colorado-Ute Electric Assoc. 1987 100% coal & 1510 psig: 1005?F Electric Power Nucla Station, CO, USA limestone 925.000 lb/hr Leykam Muerztaler AG 1755 psig: 968?F Cogeneration Gratkorn, Austria 364,000 lb/hr Kemira Oy 1987 100% coal 1218 psig; 977?F Pori, Finland 90% peat 222,000 lb/hr Chemiefaser Lenzing AG 1987 100% brown coal 1130 psig; 932?F Lenzing, Austria 100% coal 265.000 lb/hr Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Forbes The Up & Comers With U.S. nuclear power dead for the mo- ment and acid rain a growing concern, little Pyropower's new way of burning coal seems an intriguing answer. Starting over E RIC OAKES, a 44-year-old for- mer nuclear physicist, went through a rough time as a di- rector for new business development at General Atomic, an ambitious nuclear ven- ture by Gulf Oil and Roy- al Dutch/Shell's Scallop nuclear subsidiary. When the nuclear reactor busi- ness collapsed in the late Seventies, Oakes began looking for other com- mercial applications for the company's existing technologies. (General Atomic, now known as GA Technologies Inc., re- cently was absorbed by Chevron Corp., along with Gulf itself.) Oakes became the president of a GA Tech- nologies venture to make high-tech boilers. The project, spun out in 1980 as a separate company called Pyropower Corp., in San Diego, began ex- ploiting an energy source every bit as clean as nu- clear but without its po- litical problems. What excited Oakes was a technology called fluidized bed combustion (FBC), a process for bum- ing pulverized coal and limestone on a cushion of upthrusting air to make Eric Oakes of Pyropower Corp. "UtWtiea don't need those big blocks of power anymore." steam or generate power. The particu- lar virtue of this process is that the pollutants produced by the combus- tion process-sulfur, nitrogen, you name it-are harmless. Sulfur, for ex- ample, combines with the limestone to produce calcium sulfate. Various manufacturers had been dabbling in FBC for years-for steam, cogeneration or electric power pro- duction-but they had been interest- ed mainly in a different technology. This other method, which used a so- called bubbling bed, ran into prob- lems scaling up to commercial sizes. General Atomic, however, took note of a variant technology being devel- oped in Europe-circulating fluidized bed combustion (CFBC). A $700 million-a-year Finnish pulp, paper and engineering firm, A. Ahl- strom OY of Helsinki, had developed a CFBC technology and had even got its first plant into successful oper- ation. Ahlstrom had so much of a head start that in 1980 GA and Ahl- strom decided to pool their strengths in a 50-50 CFBC venture called Pyro- power Corp., which Ahlstrom finally took over entirely last year. With U.S. nuclear power dead for the moment and acid rain a matter of rising concern, FBC now mentally superior alter- coal plants for generating electricity. TVA is cur- rently building a 160,000- kilowatt demonstration facility at Paducah, Ky., using the conventional bubbling FBC process. Foster Wheeler is retrofit- ting a 125,000-kilowatt Northern States Power plant also using FBC technology. And Pyro- power is retrofitting an old coal plant for the Colorado-Ute Electric Association with a 100,000-kilowatt CFBC unit for early 1987 oper- ation. What Oakes hopes, of course, is that the Colorado-Ute project will open the big U.S. utility market to the Pyropower process. It may already have done so. In May Dia- mond West Energy Corp. and Sagamore Corp. worked out a deal with Boston Edison to build an 80,000-kilowatt CFBC plant using Pyropower boilers. There's a great deal of Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 The Up & Comers high-powered competition out there: big companies like Lurgi overseas; Combustion Engineering, Babcock & Wilcox and Keeler/ the U.S. Even so, Pyropower picked up 3 of the 15 units contracted for in the U.S. last year, and Oakes argues that Ahlstrom's experience gives it a con- siderable edge over its competition. Worldwide there are 17 Ahlstrom plants in operation, with 12 more un- der construction. Pyropower itself has already built 2 in the U.S.-a CFBC system for Gulf Oil at Bakersfield, Calif. for secondary oil recovery, and a second one, going into operation this month, for California Portland Ce- ment, to produce both steam and elec- tricity. It has contracts, as well, with B.F. Goodrich, Central Soya and Gen- eral Motors. For utility applications, Pyropower units can be built in 100,000-to 200,000-kilowatt modules, for the same $1,200-to-$1,500-a-kilowatt cost a new coal-fired 600,000-kilo- watt unit with pollution controls commands. These smaller Pyropower units, Oakes points out, are more adaptable to the current patterns of power consumption than the larger conventional plants. They can be add- ed in 150,000-kilowatt modules, for example, as demand requires, and built in three years instead of the five or six years the larger units require. "The utilities don't need those big blocks of power anymore," Oakes says. "They can absorb 150 mega- watts more rationally in their plan- ning. And the cash flow is much bet- ter with four 150-megawatt units, say, than it is with one 600-megawatt unit. With the big unit, you're going to be in the hole five or six years before it starts to generate revenue. We can put a 150-megawatt unit on line in about three years." Oakes is so confident of Pyropower's ability to do the job that he's prepared to offer fixed-price contracts with guaranteed performance. Pyropower's sales are beginning to take off: from $3 million in 1981 to $7.5 million in 1982, $22 million in 1983, $44 million last year, and $75 million in prospect for 1985 and $200 million by 1990. "Our goal is to break even this year," Oakes says. "I'm not sure we'll make it. But next year for sure. But it will be ten years before we really start to generate good earnings. It's a real challenge, trying to become a long-term supplier to the U.S. boiler business. People think that we're crazy for taking it on, but in these times of change, there's room for a newcomer with a good product and organization." ^ FokBr Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 1:oos A ol, a7 ti M Tuesday, November 19, 1985 Firm Markets Clean Coal-Power Technology Pyropower Vice President William Compas stands next to model of DON BARTLErFI By GREG JOHNSON. Times Staff Writer Coal angers environmentalists, frustrates states with plenty of the cheap but dirty burning fuel-but brings smiles to the faces of Pyropower Corp. executives. That's because San Diego-based Pyropow- er, a wholly owned subsidiary of Helsinki, Finland-based A. Ahlstrom Group, is design- ing industrial and utility boilers that burn coal and other dirty fuels without damaging the environment. Pyropower has six projects under way, including: ?An industrial boiler outside Chicago that is funded for $4.3 million by the State of Illinois: The state anticipates that the boiler ; which began operating last month, could signal a turnaround for the state's depressed coal mining industry. Making Illinois-mined coal environmen- tally safe to burn could add $500 million to the state's economy by creating as many as 4,000 new jobs, according to the state Department of Energy and Natural Re- sources. ^ In smog-ridden and coal-poor San Ber- nardino County, a Pyropower coal-fired industrial boiler designed for California Port- land Cement Co. fired up in June and, in the process, became Southern California's first new coal-fired boiler in 20 years. a A 100-megawatt coal-fired unit that was designed for the Colorado-Ute Electric As- soc. has attracted cautious attention from the utility industry. The unit, scheduled to open in 1987, marks the first use by a U.S. utility of the Pyropower technology. The Colorado-Ute unit is one of three fluidized bed projects under way, Compas said. The two others will use fluidized bed combustion systems designed by Combustion Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 COAL: New Technology Engineering and Foster Wheeler. U.S. utilities, although interested in the fluidized bed technology, have been slow to place orders, according to William Compas, vice president of Pyropower. "These (utility] guys were burned badly by [expensive] nuclear plants," Compas said. "Although there are some mavericks who will take a chance, [most are] gun-shy about any new technology." Pyropower, however, is not shy about its "circulating fluidized bed" combustion tech- nology, which generated $55 million in sales during 1984. The technology cleanly burns high-sulfur coals, petroleum coke, anthracite coal wastes and waste fuels including wood, Compas said. As fuel is frd into Pyropower-designed furnaces, a steady stream of air keeps the fuel "floating," which provides for a "cleaner" burn, company officials said. Fuel that fails to completely burn is then circulated into the furnace for complete combustion. Crushed limestone that is blown into the furnaces creates a chemi- cal reaction that eliminates the sulfur dioxides generally blamed for creating acid rain. Pyropower grew out of a part- nership involving Ahlstrom and La Jolla-based GA Technologies, which was considering the tech- nology for use in nuclear-powered boiler applications. GA abandoned its part of the boiler project after the Three Mile Island radioactivity leak, the resulting regulatory ex- plosion,' and skyrocketing con- struction costs knocked the bottom out of the nuclear reactor industry. When GA Technologies with- drew from the partnership, Ahl- strom created Pyropower as a wholly owned subsidiary, with for- Sanitized Copy Approved for Release 2011/06/23: CIA-RDP88B00443R001904420006-9 mer GA executive Eric Oakes as its president. Compas, another GA veteran, joined Pyropower just over a year ago. The company has taken advantage of a general in- dustry slowdown and grabbed managers from boiler giants such as Babcox and Wilcox. Pyropower is chasing utility and industrial customers that want both electricity and co-generated heat or steam that can be used to slash production costs, Compas said, adding that the company is also developing projects in which it acts as an owner-operator. Last month, Pyropower and General Electric signed a market- ing agreement that will "identify, screen and develop selected co-generation projects incorporat- ing Pyropower's [technology] into GE's proven power generation sys- tems," according to a GE executive. GE has predicted that during the next five years, the market for solid fuel-fired co-generation plants could swell to $5 billion.