Valuing Flexibility: The case of an Integrated Gasification Combined Cycle Power Plant

In this paper we analyze the valuation of options stemming from the flexibility in an Integrated Gasification Combined Cycle (IGCC) Power Plant. First we use as a base case the opportunity to invest in a Natural Gas Combined Cycle (NGCC) Power Plant, deriving the optimal investment rule as a function of fuel price and the remaining life of the right to invest. Additionally, the analytical solution for a perpetual option is obtained. Second, the valuation of an operating IGCC Power Plant is studied, with switching costs between states and a choice of the best operation mode. The valuation of this plant serves as a base to obtain the value of the option to delay an investment of this type. Finally, we derive the value of an opportunity to invest either in a NGCC or IGCC Power Plant, that is, to choose between an inflexible and a flexible technology, respectively. Numerical computations involve the use of one- and two-dimensional binomial lattices that support a mean-reverting process for the fuel prices. Basic parameter values refer to an actual IGCC power plant currently in operation.

Lantern spillway and hydroelectric plant, Panama Canal (ca. 1914)

Leonard Carpenter Panama Canal Collection. Photographs: Dredging, Soldiers, and Ships. [Box 1] from the Special Collections & Area Studies Department, George A. Smathers Libraries, University of Florida.

Physical Constraints to Aquatic Plant Growth in New Zealand Lakes

The nature of aquatic plant communities often defines benthic habitat within oligotrophic and mesotrophic lakes and lake management increasingly recognizes the importance of maintaining plant diversity in order to sustain biological diversity and capacity within lakes. We have developed simple statistical relationships between key physical and vegetation variables that define the habitat requirements, or “habitat-templates”, of key vegetation types to facilitate management of plant communities in New Zealand lakes. Statistical relationships were derived from two datasets. The first was a multi-lake dataset to determine the effects of water level fluctuation and water clarity. The second dataset was from a comprehensive shoreline survey of Lake Wanaka, which allowed us to examine within-lake variables such as beach slope and wave action. Sufficient statistical relationships were established to develop a habitat template for each of the major species or assemblages. The relationships suggested that the extent and diversity of shallow-growing species was related to a combination of the extent of water level fluctuation and wave exposure. (PDF contains 9 pages.)

Potential use of remote sensing to assess effects of wave action on plant re-establishment

Evaluation of the potential for remote sensing to detect a relationship between wave action factors and plant re-establishment after a habitat enhancement at Lake Kissimmee, Florida. Using Geographic Information Systems (GIS) and remote sensing, wave action factors were found to be inversely related to the probability of plant re-establishment. However, correlation of wave action factors with areal coverage of aquatic plants based on field measurements, were unable to detect a significant relationship. Other factors aside from wave action, including littoral slope and the presence of offshore vegetation, may have influenced plant re-establishment in these sites. Remote sensing techniques may be useful to detect large changes in plants communities, however small changes in plant coverages may not be detectable using this technique.

Endothall species selectivity evaluation: northern latitude aquatic plant community

Species selectivity of the aquatic herbicide dipotassium salt of endothall (Aquathol® K) was evaluated on plant species typically found in northern latitude aquatic plant communities. Submersed species included Eurasian watermilfoil (Myriophyllum spicatum L.), curlyleaf pondweed (Potamogeton crispus L.), Illinois pondweed (Potamogeton illinoensis Morong.), sago pondweed (Potamogeton pectinatus L.), coontail (Ceratophyllum demersum L.), elodea (Elodea canadensis Michx.) and wildcelery (Vallisneria americana L.). Emergent and floating-leaf plant species evaluated were cattail (Typha latifolia L.), smartweed (Polygonum hydropiperoides Michx.), pickerelweed (Pontederia cordata L.) and spatterdock (Nuphar advena Aiton). The submersed species evaluations were conducted in 7000 L mesocosm tanks, and treatment rates included 0, 0.5 1.0, 2.0, and 4.0 mg/L active ingredient (ai) endothall (dipotassium salt of endothall). The exposure period consisted of a 24-h flow through half-life for 7 d. The cattail and smartweed evaluation was conducted in 860 L mesocosm tanks, and the spatterdock and pickerelweed evaluations were conducted in 1600 L mesocosm tanks. Treatment rates for the emergent and floating-leafed plant evaluations included 0, 0.5, 2.0 and 4.0 mg/L ai endothall, and the exposure period consisted of removing and replacing half the water from each tank, after each 24 h period for a duration of 120 h. Biomass samples were collected at 3 and 8 weeks after treatment (WAT). Endothall effectively controlled Eurasian watermilfoil and curlyleaf pondweed at all of the application rates, and no significant regrowth was observed at 8 WAT. Sago pondweed, wildcelery, and Illinois pondweed biomass were also significantly reduced following the endothall application, but regrowth was observed at 8 WAT. Coontail and elodea showed no effects from endothall application at the 0.5, 1.0, and 2.0 mg/L application rates, but coontail was controlled at 4.0 mg/L rate. Spatterdock, pickerelweed, cattail, and smartweed were not injured at any of the endothall application rates.

Presidential Address: The Aquatic Plant Management Society and Our Future Sphere of Influence

Presidential address of Alison M. Fox

The Impact of Endothall on the Aquatic Plant Community of Kress Lake, Washington

CA dense mat-forming population of Eurasian watermilfoil ( Myriophyllum spicatum L . ) was interfering with fishing and recreation in a small western Washington lake. A low concentration (1.5 mg/L active ingredient) of the herbicide endothall formulated as Aquathol® K was used in 2000 to attempt to selectively control the Eurasian watermilfoil. Aquatic plant biomass and frequency data were collected before treatment, ten weeks after treatment and during the growing season for 3 additional years. Macrophyte data were analyzed to assess the herbicide’s impacts on Eurasian watermilfoil as well as the rest of the aquatic plant community. Results showed a significant decrease in Eurasian watermilfoil biomass and frequency 10 weeks after treatment. The Eurasian watermilfoil continued to be present, but at a significantly reduced level through the remainder of the study (3 years after treatment). Of the native plant species, large-leaf pondweed ( Potamogeton amplifolius Tucker . ) frequency and biomass was significantly reduced after treatment. Common elodea ( Elodea canadensis Rich.), muskgrass ( Chara sp. Vallaint.) and bladderwort ( Utricularia sp. L.) all increased significantly after treatment. (PDF has 6 pages.)

Combining Plant Pathogenic Fungi and the Leaf-Mining Fly, Hydrellia pakistanae, Increases Damage to Hydrilla

Four fungal species, F71PJ Acremonium sp., F531 Cylindrocarpon sp., F542, Botrytis sp., and F964 Fusarium culmorum [Wm. G. Sm.] Sacc. were recovered from hydrilla [ Hydrilla verticillata (L. f.) Royle] shoots or from soil and water surrounding hydrilla growing in ponds and lakes in Florida and shown to be capable of killing hydrilla in a bioassay. The isolates were tested singly and in combination with the leaf-mining fly, Hydrellia pakistanae (Diptera: Ephydridae), for their capability to kill or severely damage hydrilla in a bioassay.

Measures of Plant Surface-areas for Eurasian Watermilfoil and Water Stargrass

Plant surface areas were measured from samples of two common submersed aquatics with widely diverging morphologies: Eurasian watermilfoil ( Myriophyllum spicatum L.) and water stargrass ( Heteranthera dubia (Jacq.) MacM.). Measures for the highly dissected leaves of Eurasian watermilfoil involved development of a regression equation relating leaf length to direct measures of a subsample of leaf parts. Measures for the simple leaves of the stargrass were sums of measured triangles. Stem surfaces for both species were calculated as measured cylinders. Though the means of the stem length and leaf length were larger for stargrass samples, their mean surface area was 95 cm 2 which was less than the 108 cm 2 recorded for Eurasian watermilfoil samples. Relating surface area to dry weight for the stargrass was straightforward, with 1 mg of dry weight yielding an average 0.678 cm 2 of surface area. Biomass measures for the water milfoil were confounded by the additional weight of epiphytic algae persisting on cleaned samples. The results suggest that a lesstime consuming method for surface area measures of plants with highly dissected leaves and a caveat for using biomass measures to estimate surface area in such plants.

Letter from the Editor: special issue of papers on “The Use of Native Insect Herbivores for the Management of Eurasian Watermilfoil," presented at a special session of the Annual Meeting, Aquatic Plant Management Society, July 1998, Memphis, TN

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