China Market For Flow Control and Treatment is Tricky
The recent Chinese stock market meltdown has many flow control and treatment
product and service suppliers re-evaluating their forecasts for this country.
The impact on Chinese based suppliers has to be viewed in a different light than
impact on the international supplier. “The implications are mixed” states
the McIlvaine Company in
N064 Air/Gas/Water/Fluid Treatment and Control: World Market.
(www.mcilvainecompany.com)
The worry is that China will follow the same path as Japan. In 1991 it was
widely predicted that Japan would soon pass the U.S. as the world’s largest
economy. The stock market was priced at seventy times earnings and the
government was recklessly pushing growth. The difference with China is
that the market value is twenty-three times earnings, so this is some comfort.
There are other similarities and differences but the conclusion is that China
will not suffer the same fate as Japan. However, growth is not going to be
as robust in the next decade as in the last.
In general the news is worse for local suppliers than for international. The
demand for primary metals, power and heavy industrial products will not grow at
previous rates. However, the market share for international suppliers may
go up instead of down. Emphasis on performance, energy saving and
reliability will better serve the suppliers of better products. If the
international suppliers have the best offering, they will have a better chance
than in a period where capacity growth trumped quality.
International suppliers may find that prices do not fall but instead rise.
The reason is that the cost of systems and products has been influenced by the
easy money available to flow control and treatment companies. This is
coming to an end. Some Chinese suppliers may have been involved in margin
trading by using their stock as collateral for additional bank loans. The
lower stock value will put severe pressure on such suppliers. The lower quality
producers are likely to disappear.
The European air pollution market surge in the 1980s and early 1990s provides
some insight. Large numbers of EU pollution control companies were formed.
They capitalized on EU regulations which generated a big domestic market.
Investors rationalized that these EU companies would then move on to dominate
the world market. It did not happen. Many of these companies were
dissolved and only a few e.g. Andritz and Clyde Bergemann went on to become
international market leaders. None of the European companies has achieved
the international position of Mitsubishi or Babcock & Wilcox. (Alstom is a
special case but is now part of GE and was originally the U.S. based Combustion
Engineering.)
The biggest success in the Chinese market by international suppliers will be by
those companies supplying total solutions. Pentair valves are used in many
Chinese pulse jet dust collectors. The reason is that Pentair makes
specialized valve systems and knows how to design them to maximize the cleaning
capability. Semiconductor manufacturers look to reliable suppliers to
solve their toxic fume problems. Pharmaceutical companies rely on Pall and
other filter manufacturers to help them make safe and effective drugs.
Whether it is a complete system or a component, understanding the processes will
be the key to success for international suppliers in China.
For more information on
N064 Air/Gas/Water/Fluid Treatment and Control: World Market,
click on: http://home.mcilvainecompany.com/index.php/markets/27-water/445-n064-air-gas-water-fluid-treatment.
Renewable Energy Briefs
SunEdison Closes Financing and Starts Construction of a 185 MW Wind energy
Project in Maine
SunEdison, Inc. announced that is has secured financing for and started
construction on the Bingham Wind project in Maine. The 185-megawatt (MW) wind
project is expected to be the largest of its kind in the New England area of the
U.S.
The financing facility for the combined wind farm and generator lead is for $360
million, and the total construction cost is $420 million. KeyBanc Capital
Markets Inc. served as the joint lead arranger and KeyBank National Association
acted as administrative agent on the construction loan.
The electricity generated by this wind project will be sold to three local
utilities in New England; Eversource, National Grid, and Unitil. The wind energy
will be purchased through separate 15-year power purchase agreements that were
awarded in a competitive bidding process.
Petroleum Development Oman and GlassPoint Solar to Build One Gigawatt Solar
Thermal Project for Oil Production
Petroleum Development Oman (PDO), the largest producer of oil and gas in Oman,
and GlassPoint Solar, the leader in solar enhanced oil recovery (EOR), announced
plans to build one of the world’s largest solar plants.
Miraah (meaning mirror in Arabic) will be a 1,021 megawatt solar thermal
facility in South Oman, harnessing the sun’s rays to produce steam. The steam
will be used in thermal EOR to extract heavy and viscous oil at the Amal
oilfield. Miraah will deliver the largest peak energy output of any solar plant
in the world. The scope of this landmark project underscores the massive market
for deploying solar in the oil and gas industry.
The plant will provide a sustainable solution for EOR steam, which is currently
produced by burning natural gas. Once complete, Miraah will save 5.6 trillion
British Thermal Units (BTUs) of natural gas each year, the amount of gas that
could be used to provide residential electricity to 209,000 people in Oman.
The project will generate an average of 6,000 tons of solar steam daily for oil
production, dwarfing all other solar EOR installations. The system will deliver
steam to Amal’s existing thermal EOR operations, meeting a sizable portion of
the field’s steam demand. The full-scale project will comprise 36 glasshouse
modules, built and commissioned in succession in groups of four. The total
project area, including all supporting infrastructure, will span three-square
kilometers, an area equivalent to more than 360 football pitches. The actual
solar field will span less than two-square kilometers.
The project will break ground this year with steam generation from the first
glasshouse module in 2017. Once complete, Miraah will deliver more energy to the
customer than any other solar plant in the world. The project is expected to
reduce CO2 emissions by over 300,000 tons annually, the equivalent of taking
63,000 cars off the road.
Yingli Supplies 240 MW of Solar Panels for Latin America’s Largest Hybrid Solar
Power Plants
Yingli Green Energy Holding Company Limited announced that it is supplying 240
megawatts (MW) of solar panels for Latin America's two largest hybrid solar
photovoltaic (PV) and concentrated solar power (CSP) power plants. Both
projects, located in northern Chile, will also be equipped with 110 MW of CSP
and 17.5 hours of thermal storage each.
As the power plants' sole PV supplier, Yingli is providing over 780,000
multicrystalline utility-scale YGE 72 Cell solar panels to the projects, which
be installed in two phases. The first phase of panel deliveries was recently
completed, and the second phase will start in August. The first power plant is
expected to be operational by mid-2016.
Once complete, the PV portion of the solar power plants will occupy nearly
100,000 acres of land in total. Both projects will be connected to the national
utility grid and deliver an uninterrupted power supply to commercial,
industrial, and residential customers throughout Chile, offsetting approximately
385,000 tons of carbon emissions each year.
Andritz to Supply New Power Boiler for the Pohang Waste to Energy Plant in South
Korea
International technology Group Andritz has received an order from Posco E&C to
supply key equipment for a 50-megawatt bubbling fluidized bed boiler fired with
refuse-derived fuel for the Greenfield waste-to-energy plant in Pohang, South
Korea. Start-up is scheduled for spring 2018.
The scope of supply also includes basic engineering as well as supervisory
services for erection and commissioning. The plant will utilize 100,000 tons of
pre-treated waste per year and generate power for 20,000 homes in South Korea,
thus saving 85,000 tons of CO2 emissions every year.
Eco Wave Power Installs Second Generation Power Plant in Israel
Eco Wave Power has completed the installation of its second generation Power
Plant in Israel, commenced parts procurement and assembly towards the new
project in Gibraltar and was recognized by Erasmus Awards.
EWP successfully performed wave pool testing as well as three years of real
conditions testing to prove the durability of its components. Once proven, EWP
started working on components upgrade and development of a unique automation
system that serves to collect data and enables remote control, operation and
maintenance of the power plant, while providing the grid with stable electric
output.
Earlier this month, EWP installed the improved system in Jaffa Port, Israel. The
upgraded power plant will be working with two floaters. One is "the 1st
Generation Floater" and the other is the new and improved "2nd Generation
Floater", which will be tested by EWP, towards its deployment in the wave energy
project in Gibraltar.
EWP currently holds projects pipe-line of 111 MW. The company initiated the
execution of such pipe-line with a 5MW PPA (Power Purchase Agreement) signed
with the Government of Gibraltar, during 2014.
EWP will complete its initial commitments under this PPA, by placing a wave farm
comprised of eight 2nd generation floaters on a pier in Gibraltar, by the end of
this year. This will be the first phase towards the execution of 5 MW in total.
The 5 MW power plant will provide Gibraltar with 15 percent of its energy
consumption.
For more information on Renewable Energy Projects and Update please visit
http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
Headlines for Utility E-Alert – July 10, 2015
UTILITY E-ALERT
#1231– July 10, 2015
Table of Contents
COAL – US
COAL – WORLD
GAS/OIL – US
·
Coal
Miners
Union
opposes planned
West Virginia Natural
Gas-fired
Power Plant
·
New 650 MW Combined Cycle Power Plant dedicated in Kentucky
·
Exelon starts developing 1GW Combined Cycle Gas Turbine Unit in Texas
·
Exelon Generation’s New Maryland Natural Gas-fired Power Plant Now Operational
·
NTE Energy’s New Natural Gas Power Plant to break Ground Next Month
·
FPL announces Plans to modernize its Power Plant Fleet
GAS/OIL – WORLD
·
Shilands seek Zera approval to build
Gas-fired
Power
Plant
in Mutare,
Zimbabwe
·
GE selected to reduce Emissions at Beijing Taiyanggong Power Plant
·
Gemma Power Systems enters EPC Agreement for Combined Cycle Power Plant with
Moxie Freedom LLC
NUCLEAR
BUSINESS
HOT TOPIC HOUR
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
“Mercury Removal Options” is the “Hot Topic Hour” on July 23, 2015 at 10:00 a.m.
CST
The latest developments relative to regulations, implementation and technology
for mercury control will be discussed in a 90-minute session. The basis for the
discussion will be the: Mercury Reduction Route Map and Summary
http://home.mcilvainecompany.com/images/Mercury_Reduction_Route_Map_and_Summary.pdf
We will continue to expand this summary and to link to new articles and case
histories on a custom website. We are seeking contributions from the
industry. Please contact us and we can coordinate your contribution.
(rmcilvaine@mcilvainecompany.com)
The Supreme Court decision last month will be analyzed and the remand
requirement to assess costs used as the basis for a review of the McIlvaine
Mercury Decisions System. Efficiency is a major factor in cost
determination. It is not a question of cost per pound, it is a question of the
cost for the last removal increment required.
Whereas the older technology resulted in costs per pound removed which were ten
times higher for efficiency increases above 80 percent than for less efficiency,
the new technologies are proving cost-effective at high levels of efficiency.
One such example is the Gore module.
There are many issues and options which vary by industry and geography.
All are included in a comprehensive database which is part of Power Plant Air
Quality Decisions.
Participants in “Mercury Removal Options” on July 23, 2015:
Sterling Gray,
Business Development Manager, AECOM 512-419-5653
Steve Feeney,
National Sales Manager, Aftermarkets, Babcock & Wilcox Power Generating Group
Daniel Chang,
AQC Business Development, Energy, Black & Veatch
Jon D. Lehmkuhler,
Commercial Manager, Brominated Products, Chemtura Corp., Brominated Performance
Products, Great Lakes Solutions
Nicholas (Nick) R. Pollack,
Ph.D., Chief Technology Officer, CoaLogix/SCR-Tech
John J. Knotts,
Global Business Development Leader, W. L. Gore & Associates, Inc., Gas Phase Air
Pollution Control Technologies Mobile
Click here to view schedule and register
McIlvaine Hot Topic Hour Registration
On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting
on important energy and pollution control subjects. These Webinars are
free of charge to owner/operators of the plants. They are also free
to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility
Tracking System. The cost for others is
$300.00 per webinar.
See below for information on upcoming Hot Topic Hours. We welcome your
input relative to suggested additions.
|
DATE |
SUBJECT |
DESCRIPTION |
|
July 23, 2015 |
Mercury Removal Options |
|
|
August 6, 2015 |
Gas Turbine Emission Control |
|
|
August 20, 2015 |
Total Solution Options |
Click here
for the
Subscriber
and Power Plant or Cement Plant
Owner/Operator
Registration Form
Click here
for the
Non-Subscribers
Registration Form
----------
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