Water Market Insights No

Water Market Insights
No. 89 March 7, 2014

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· Centrifuge Purchases by Municipal Wastewater Plants Will Exceed $1.2 Billion In 2015

For the first time, the upstream oil and gas industry will spend more than $10 billion for valves in a single year. In 2015, the expenditure will be $10.3 billion. This includes valves purchased for oil and gas extraction. It includes those used in unconventional extraction such as from sub-sea shale and oil sands. The forecast also includes valves used in LNG and gas-to-liquids plants. The analysis appears in Industrial Valves: World Markets published by the McIlvaine Company. (www.mcilvainecompany.com)

* Revenue values include valve and valve actuator when actuator is supplied with valve by valve manufacturer.

The Middle East remains the historic leader, but NAFTA will be a close second. The U.S. shale gas and oil expansion and the Canadian tar sands investments are providing substantial valve markets. These forecasts do not include refineries. However, the lower quality crudes being extracted in NAFTA are spurring investments in refinery valves due to upgrades.

A larger percentage of the valve spend is now directed at control of water and wastewater. Hydraulic fracturing requires extensive valving. Up to 30 chemicals along with sand are mixed with water prior to injection. The flowback water in many states cannot be discharged into underground storage. It is too contaminated to be treated by conventional sewage treatment plants. The result is a significant treatment investment.

The shale gas boom is resulting in LNG and gas-to-liquid plant construction. Large numbers of valves are required to operate these plants.

Centrifuge Purchases by Municipal Wastewater Plants Will Exceed $1.2 Billion In 2015

Municipalities will spend $1.2 billion in 2015 for new centrifuges to dewater sewage sludge. This is the conclusion reached by the McIlvaine Company in Sedimentation & Centrifugation World Markets. (www.mcilvainecompany.com)

East Asia will be the regional leader with purchases in excess of $500 million. There are many new secondary treatment plants under construction in the region. Centrifuges are favored at the larger plants while belt filter presses are favored at the small plants.

NAFTA will be the second largest market. There are many planned upgrades of old plants in the U.S. Centrifuges are used for final dewatering, but they are also used for gravity thickening.

There is a substantial market in Eastern Europe. Romania has recently purchased centrifuges for three plants. Over 50 cities continue to discharge their untreated wastewater into rivers or the Black Sea. Around half of all existing wastewater treatment plants do not comply with EU requirements. It is intended that the EU standards will be implemented in all municipal wastewater treatment plants by the year 2018. This will require the expansion and modernization of existing plants, and the construction of new wastewater treatment plants.

The Western European and Japanese markets are similar to those in the U.S. The majority of sales will be for upgrades of existing plants.

Sales of cartridges to remove particulates from liquids will exceed $5.4 billion in 2015 in Asia. This is the latest finding in the McIlvaine Company Cartridge Filters: World Market. (www.mcilvainecompany.com)

The biggest market will be in residences at the point-of-use. Refrigerator and under-sink units are included in this category. The large market is a function of the following:

There is a substantial commercial market spurred by the office construction boom in China. The healthcare segment is large. This is due to the increasing healthcare expenditures for more than half the world’s citizens. There is substantial growth in the pharmaceutical sector due to the construction of generic drug manufacturing plants in China and India by the international drug companies.

These forecasts include only the dead-end cartridges and not the cross-flow membrane modules. Also excluded are self cleaning filters.

§ A New Set of Regulations for existing Power Plants will be “Flexible”

§ NRG Energy plans Natural Gas Pipeline to convert its Coal-burning Avon Lake Power Plant

§ Brigham City, Utah will build Gas-fired Power Plant

§ NTE Energy to Develop 480 MW Gas-fired Combined Cycle Facility in North Carolina

§ Two Natural Gas-fired Power Plants to break Ground in Porter Township, PA this Spring

§ “NO_x Catalyst Performance on Mercury and SO₃” is very Complex - Hot Topic Hour Conclusion on February 27, 2014

On Thursday at 10 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. Power webinars are free for subscribers to either Power Plant Air Quality Decisions or Utility Tracking System. The cost is $300.00 for non-subscribers.

See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.

DATE	SUBJECT
March 20, 2014	China Air Pollution Control	World’s Largest Market
March 27, 2014	Analysis Of Dry Scrubber Options	Top notch third party expert panelists and lots of background info
April 10, 2014	Mercury Chemicals In Fuel, Flue Gas and Scrubbing Liquor	Important alternative to sorbents
April 17, 2014	Measurement Of Gas Turbine Emissions Including NH₃	Six different options
May 1, 2014	850^oF Particulate Removal With Ceramic Filter Media	Could change the whole back end
May 8, 2014	Sorbent Traps vs. Mercury CEMS	Sorbent traps are competitive
May 15, 2014	Gas Intake Filters: HEPA or Medium Efficiency	More information
May 29, 2014	Stellite Delamination in Power Plant Steam Valves	More information
June 5, 2014	Dry vs. Wet Cooling	Surprising number of ACC’S. Why?
June 12, 2014	HRSG Issues (Fast Start, Tube Failures)	Lots of challenges to cycle 200 X/yr
June 26, 2014	CCR	$ billions Needed
July/August 2014	Boiler Feedwater Treatment Condensate Polishing for Peaking Turbines 316 B Water Issues Gas Turbine Permitting Issues *Give us your opinion about topics we should consider*

§ Brigham City, Utah will build Gas-fired Power Plant

§ Two Natural Gas-fired Power Plants to break Ground in Porter Township, PA this Spring