Water Market Insights No

Municipal wastewater plants will spend $4.5 billion for valves in 2017. $3.4 billion will be for on/off valves and the balance for control valves. This is the conclusion reached in Industrial Valves: World Markets published by the McIlvaine Company. (www.mcilvainecompany.com)

Globe valves will be the leading category with an expenditure of over $1 billion. China will be the country leader. This is due to its spectacular increase in secondary treatment capacity which has tripled in the last two decades to over 30,000 MGD. By contrast, the U.S. capacity is only 39,000 MGD. Only 4,000 MGD does not receive secondary treatment. Over 90 percent of the transported sewage receives secondary treatment.

By contrast, other countries in the Americas treat anywhere from 31 percent to 79 percent of the transported sewage, so there is a big potential for valves for new plants in these regions. There is new construction in smaller cities in Eastern Europe. The EU Urban Wastewater Treatment Directive is the guiding force behind the new construction and upgrades. Romania has until 2015 to comply, whereas Croatia is facing a 2023 deadline.

The plant size is smaller in Europe than in the U.S. For example, France has less than 20 percent of the population of the U.S. However it has 19,000 municipal wastewater plants compared to 16,000 in the U.S.

There are 1900 active projects in the U.S. and Canada which will require significant valve purchases. However, many of the projects are to replace or upgrade existing facilities rather than for additional needed capacity. The U.S. has not modernized and renovated faculties on an acceptable twenty year cycle. Many valves are obsolete in design and should be replaced by the “intelligent valves” offered today.

China is planning investments and adjusting regulations which will result in very large opportunities for suppliers of flow control and treatment equipment. These opportunities are analyzed in Air/Gas/Water/Fluid Treatment and Control: World Markets published by the McIlvaine Company. (www.mcilvainecompany.com) There are four opportunities which stand out because of their size and the opportunity for innovative technologies.

1 Retrofit of Selective Catalytic Reduction (SCR) to existing coal-fired power plants

Two of the opportunities are related to the decision to rely on coal for future energy needs. This decision is coupled with a commitment to reduce emissions from coal-fired generators. China has already retrofitted systems to remove SO₂ from existing power plants. It is now making a 40 billion dollar commitment to provide 90 percent NO_x reduction from these same power plants. China will be operating more than 50 percent of the world’s coal-fired SCR systems by 2020.

China can be likened to Los Angeles in terms of the challenges it faces relative to ambient particulate. Topography magnifies the impact of fine particulate emissions for critical areas such as Beijing and many major cities. The new limits on particulate emissions from coal-fired power plants and other sources will create new markets for fabric filters and other innovative technology to compete with the standard electrostatic precipitators.

China has been far behind the rest of the world in terms of sophisticated pharmaceuticals production. Plants producing branded pharmaceuticals use water of extreme purity. This in turn requires special pumps, valves and treatment equipment. Air circulating in production areas has to be fifty times cleaner than ambient air.

The world’s largest pharmaceutical companies have decided to enter the generic market by building large facilities in Asia. Many of the new facilities are being constructed in China. They include research as well as production facilities. As a result, China will be both a large market and one receptive to innovations for suppliers of flow control and treatment products.

Rainfall per capita in China is only 25 percent as high as the world average. Furthermore, the distribution is uneven. There are many arid areas. A new trend is for construction of industrial facilities in areas where transcontinental rail shipping is convenient as opposed to ocean transport. This combination of factors will be putting great stress on water resources.

Treated municipal wastewater will increasingly be used for industrial, commercial and no potable residential purposes. Industrial plants will reuse rather than discharge wastewater. This trend will also generate billions of dollars in annual revenue for flow control and treatment companies.

§ Edison and Marubeni still in the running to build Plomin C Power Plant in Croatia

§ Multi-national Companies to build 500 MW Coal-fired Power Plant in Myanmar

§ Black & Veatch supports 600 MW Ugljevik 3 Power Project in Republic of Srpska

§ JSPL in talks to buy 1,320 MW Power Project in Andhra Pradesh, India from Kineta Power

§ Adaro, J-Power and Itochu postpone construction of 2,000 MW Coal-fired Power Plant in Indonesia

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 $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report subscribers and are $400.00 for non-subscribers.

DATE	Non-Subscribers Cost	SUBJECT	Webinar Type
October 31, 2013	$125.00	Chinese FGD/SCR Program and Impact on the World	Power
November 21, 2013	$125.00	Wet vs Dry ESP	Power
December 5, 2013	$125.00	Update on Gasification Projects and Technology	Power
December 12, 2013	$125.00	Selecting FGD Scrubber Components	Power
December 19, 2013	$125.00	Application of U.S. Mercury Control Technology in Other Countries	Power
January 9, 2014	$125.00	Improving ESP Performance	Power
January 16, 2014	$125.00	Corrosion Issues and Materials for APC Systems	Power
January 23, 2014	$125.00	Co-Firing Sewage Sludge, Biomass and Municipal Waste	Power
January 30, 2014	$125.00	Impact of Ambient Air Quality Rules on Fossil Fueled Boilers and Gas Turbines	Power
February 6, 2014	$125.00	Review of EUEC	Power
February 13, 2014	$125.00	NOx Catalyst Performance on Mercury and SO3	Power
February 20, 2014	$125.00	CFB Technology and Clean Coal (Update on CFB Reactor Technology)	Power
February 27, 2014	$125.00	Dry FGD: Spray Dry vs. CFB vs. DSI	Power
March 6, 2014	$125.00	Update on IGCC (Integrated Gasification Combined Cycle)	Power
March 13, 2014	$125.00	Update on Oxy-Fuel Combustion	Power
March 20, 2014	$125.00	Air Preheaters & Heat Exchangers	Power
March 27, 2014	$125.00	Mercury Control and Removal	Power
April 3, 2014	$125.00	HRSG Design, Operation and Maintenance Considerations	Power
April 10, 2014	$125.00	Measurement and Control Instrumentation for Power Plants	Power
April 17, 2014	$125.00	Measurement and Control of PM2.5	Power
April 24, 2014	$125.00	Status of Carbon-to-Liquid Projects and Technology	Power
May 1, 2014	$125.00	Renewable Energy, Status, Options, Technology Update	Power
May 8, 2014	$125.00	Valves for Power Plant Steam and Cooling Water	Power
May 15, 2014	$125.00	Water Treatment During Gas and Oil Production	Power
May 22, 2014	$125.00	Advances in Coal Blending	Power
May 29, 2014	$125.00	Clean Coal Technologies	Power
June 5, 2014	$125.00	Material Handling in Fossil Fueled Power Plants	Power
June 12, 2014	$125.00	Industrial Boiler MACT - Impact and Control Options	Power
June 19, 2014	$125.00	Multi-emissions Control Technologies	Power
June 26, 2014	$125.00	Next Generation of Coal Combustion Technologies	Power
July 10, 2014	$125.00	Compliance Strategies for PM2.5

Subject	2017
Ball	615
Butterfly	813
Check	140
Gate	937
Globe	1,029
Industrial Plug	760
Other	240
Safety Relief	6
Total	4,540