IIoT is Creating New Market Paths to the $100 Billion Gas Turbine Repair,
Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way
gas turbine products are purchased. The impact of IIoT is being continually
assessed in 59EI Gas Turbine and Reciprocating Engine Supplier Program.
The inventory of existing gas turbine plants is growing at six percent per year
and in the next few years the base will grow to two million MW. There are 30,000
individual units which routinely require service, replacement or repair of
instrumentation, valves, pumps, filters, nozzles, and other components. There is
a continual need for filter elements, treatment chemicals, lubricants,
catalysts, reagents and other consumables. The market for replacement products,
repair and services is $100 billion per year and will grow by more than six
percent per year
IIoT provides remote delivery of comprehensive information about the operation
and health of individual components. This data can be analyzed to identify
problems and will create opportunities for the sale of better products to
replace the existing ones. IIoT is creating new channels to market in contrast
to the sale of products directly to a single end user.
End Users
Large end users are creating fleetwide purchasing and monitoring systems.
Southern Company operates over 280 power generation units at 73 power plants
including gas turbine, combined cycle, steam (coal), hydro and solar. Southern
Company implemented the first phase of their fleetwide monitoring and
diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s
efforts promise to result in maintenance savings and availability improvements,
while increasing equipment health visibility and optimizing logistics of
maintenance.
The one hundred largest operators of gas turbines around the world account for
the majority of purchases. Therefore, working with them should be a high
priority. Each of these plants is identified in Gas Turbine and Reciprocating
Engine Supplier Program.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the
health of rotating parts such as turbines. However, this is being expanded. MHPS
just opened a remote monitoring center in the Philippines. It is monitoring the
balance of plant in addition to the turbines.
Process Providers
Suppliers of heat recovery steam generators, ultrapure water, emission controls
and water treatment are also purchasers or influencers relative to products.
Nalco has a water quality remote monitoring center which operates around the
clock.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions
utilizing the very same ABB DCS platform that controls the rest of the plant.
The typical gas turbine functions implemented include fuel control, startup
sequence, speed-load-temperature closed loop control, overspeed protection,
anti-surge protection, generator protection, auxiliary control, condition
monitoring, auto-synchronization, excitation, frequency control, etc.
Yokogawa has various programs including one which monitors the wastewater from
the plant. The automation supplier can be working directly with the end user and
not necessarily through the process supplier.
Subject Matter Experts
When problems arise, which cannot be handled by the dedicated supplier
personnel, it is necessary to turn to subject matter experts. A product problem
for one supplier can turn into an opportunity for another as a result of the
recommendations of a subject matter expert. Product suppliers need to encourage
the participation of subject matter experts who understand the product and can
provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background
data which can be opportunistically displayed to help solve problems as they
occur.
The gathering and organization of this data for use in the software system is a
major challenge. McIlvaine is providing this data in its gas turbine related
services but also in systems structured for a single utility. The beta site is
for Berkshire Hathaway Energy (BHE) which operates hundreds of gas turbine and
other power plants.
O&M Third Party Providers
Many gas turbine combined cycle plants are operated and maintained by third
parties. The developments in remote monitoring are making it more attractive to
sub contract to a company specializing in O&M. These providers include
specialized service companies such as Wood Group and EthosEnergy, power plant
operators such as Uniper and RWE who are leveraging their experience to help
others, and the plant suppliers such as Siemens and GE who have
build/own/operate (BOO) contracts.
Suppliers have an opportunity in an expanding gas turbine market to take
advantage of the IIoT driven changes and to increase not only revenues but gross
margins and profits as a percent of those revenues. This will require direct
high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine
Supplier Program.
IIoT is Creating New Market Paths to the $700 Million Gas Turbine and
Reciprocating Engine Air Filter Repair, Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way
air filters for gas turbines and reciprocating engines are purchased. The impact
of IIoT is being continually assessed in the 59EI Gas Turbine and Reciprocating
Engine Supplier Program. The markets for air filters for these plants are
analyzed in N022 Air Filtration and Purification World Market.
The inventory of existing gas turbine plants is growing at six percent per year
and, in the next few years, the base will grow to two million MWs. There are
30,000 individual units which routinely require service, replacement or repair
of air filters used for intake air in gas turbines and for inlet air filtration
of compressors, diesel and gas engines. The market for replacement filters and
services is $700 million per year and will grow by more than six percent per
year.
IIoT provides remote delivery of comprehensive information about the operation
and health of air filters. This data can be analyzed to identify problems and
will create opportunities for the sale of better filters, media, coatings and
smarter filters to replace the existing ones. There is much controversy on
whether high efficiency microfiberglass filters for GT intakes justify the extra
cost. With IIoT the answers for each specific plant will be available.
IIoT is creating new channels to market in contrast to the sale of products
directly to a single end user.
End Users
Large end users are creating fleetwide purchasing and monitoring systems.
Southern Company operates over 280 power generation units at 73 power plants
including gas turbine, combined cycle, steam (coal), hydro and solar. Southern
Company implemented the first phase of their fleetwide monitoring and
diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s
efforts promise to result in maintenance savings and availability improvements,
while increasing equipment health visibility and optimizing logistics of
maintenance.
The one hundred largest operators of gas turbines around the world account for
most purchases. Therefore, working with them should be a high priority. Each of
these plants is identified in Gas Turbine and Reciprocating Engine Supplier
Program.
Filter manufacturers have the opportunity to offer programs to service and
replace all the filters in the fleet. With IIoT cost effective maintenance can
reduce costs for the end user while increasing margins for the supplier. When
the small compressor filters are included there are many thousands of filters in
a large fleet. The cost of purchase and storing small filters is much higher for
an individual user than it is for a company supplying all filters. Some of the
toughest applications for filters are in remote areas or on floating platforms
in oceans. Remote monitoring and central supply is particularly advantageous for
these applications.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the
health of rotating parts such as turbines. However, this is being expanded. MHPS
just opened a remote monitoring center in the Philippines. It is monitoring the
balance of plant in addition to the turbines. A filter supplier offering remote
filter monitoring for all units can team with a turbine plant supplier for joint
analysis of the operating data.
Process Providers
Suppliers of gas turbine intake systems or plant compressed air are also
purchasers or influencers relative to products. A plant air compressor supplier
can share remote data with the filter supplier.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions
utilizing the very same ABB DCS platform that controls the rest of the plant.
The typical gas turbine functions implemented include fuel control, startup
sequence, speed-load-temperature closed loop control, overspeed protection,
anti-surge protection, generator protection, auxiliary control, condition
monitoring, auto-synchronization, excitation, frequency control, etc. Parameters
such as the pressure drop across the air filter are important. Both the filter
supplier and the automation supplier can share relevant data.
Subject Matter Experts
When problems arise which cannot be handled by the dedicated supplier personnel,
it is necessary to turn to subject matter experts. An air filter problem for one
supplier can turn into an opportunity for another as a result of the
recommendations of a subject matter expert. Another opportunity is to supply a
better and more expensive product. Mann & Hummel supplies filters with
nanofibers for higher performance. So, where gas or diesel engines are operating
in dusty areas, the additional cost can be justified. Air filter suppliers need
to encourage the participation of subject matter experts who understand the
product and can provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background
data which can be opportunistically displayed to help solve problems as they
occur.
The gathering and organization of this data for use in the software system is a
major challenge. McIlvaine is providing this data in its air filter and gas
turbine related services but also in systems structured for a single utility.
The beta site is for Berkshire Hathaway Energy (BHE) which operates hundreds of
gas turbine and other power plants.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by
third parties. The developments in remote monitoring are making it more
attractive to sub contract to a company specializing in O&M. These providers
include specialized service companies such as Wood Group and EthosEnergy, power
plant operators such as Uniper and RWE who are leveraging their experience to
help others, and the plant suppliers such as Siemens and GE who have
build/own/operate (BOO) contracts.
Air filter suppliers have an opportunity in an expanding gas turbine market to
take advantage of the IIoT driven changes and to increase not only revenues but
gross margins and profits as a percent of those revenues. This will require
direct high level communication with several types of organizations.
For more information, click on: 59EI Gas Turbine and Reciprocating Engine
Supplier Program. For more information, click on N022 Air Filtration and
Purification World Market
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis
Here are some Headlines from the Utility E-Alert
UTILITY E-ALERT
#1304 – January 6, 2017
Table of Contents
COAL – US
• Ash Pond leaks this Week at Duke Energy Rogers Coal-fired Power Plant
• Coal-fired Power Plants will continue to close despite change at EPA
• Coal-fired Power Plant's Owners weigh Options that include closure
• Washington State has blocked Plans for the Nation’s biggest Coal Export
Terminal
• Ameren will install New Ambient SO2 Monitors
• EPA analysis shows Wet FGD is most Cost-effective Route to meet Federal
Implementation Plan
COAL – WORLD
• China fines 605 Power Plants 328 Million Yuan for Environmental breaches
• BHEL commissions Second 600 MW Thermal Unit in Telangana
• Delay in approval of Meralco Projects to hike construction and Operational
Costs
• GE Power India Ltd awarded Contract worth Rs. 271.1 Crores
• Aboitiz Power cleared to acquire Stakes in in GNPower Thermal Power Plants
• French Bank backs out of financing Indonesian Coal-fired Power Plant
• Swahili Settlement in Lamu, East Africa protesting against Kenyan Government’s
plans for a Coal-fired Power Plant
The 41F Utility E-Alert is issued weekly and covers the coal-fired projects,
regulations and other information important to the suppliers. It is $950/yr. but
is included in the $3020 42EI Utility Tracking System which has data on every
plant and project plus networking directories and many other features.
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You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5.
Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com