Nuclear Power Plants Will Spend $1.6 Billion for Valves Next Year
Nuclear power plants use thousands of valves. Older power plants need to replace
and repair valves and in some cases to upgrade them to meet new safety
standards. This has created a world market which will exceed $1.6 billion in
2014. This is the conclusion reached in the new McIlvaine report,
Nuclear Power Plant Valve Forecast and Analysis. (www.mcilvainecompany.com)
The Fukushima nuclear accident in Japan in March 2011 has reshaped the nuclear
power industry. Some countries halted construction for further review.
Others decided to phase out nuclear power. A number of countries are now again
moving forward.
China is currently leading the world with approximately 26 new nuclear reactors
under construction or planned for near-term construction. In January 2013, China
started up the first new nuclear reactor to become commercial since Fukishima.
Worldwide, there are close to 60 reactors in construction or near construction.
The total valve investment in a typical 1,000 MW nuclear power plant is in
excess of $80 million. There is some variation from design to design.
Nuclear power plants of either PWR or BWR design include more than 5,000 valves
per installation. The valve applications include safety, control and
isolation functions, among others. More than 500 valves are classified as
“safety” valves with the balance classified as “non-safety.” These valves
reflect virtually all valve types and sizes including ball, gate, globe,
butterfly, check, plug, poppet, squib and others. Valve sizes range from
fractions of a gallon per minute for chemical feed regulation to many thousands
of gallons per minute for controlling reactor cooling and condenser cooling.
The future for nuclear power may depend on the trajectory of
continuous-improvement in reactor designs already established by the major
suppliers including Areva, GE, Hitachi, Mitsubishi, Westinghouse and others
sourced from Canada, Russia, China and South Korea. The two most prominent
reactor types today are pressurized water reactors (PWRs) and boiling water
reactors (BWRs). Currently, the PWR predominates in terms of installed and
planned megawatts. Both reactor types have been significantly improved in
terms of design simplicity and safety features relative to the early designs of
the 1960s and 1970s. Improvement in valve design has kept pace with the
plant improvements.
For more information on:
Nuclear Power Plant Valve Forecast and Analysis, click
on:
http://home.mcilvainecompany.com/index.php/component/content/article?id=71#n241i
Race for World Dominance in Air, Water and Energy Will be Won by Companies Not
Countries
Long-term revenue forecasts in the twenty McIlvaine market reports in the air,
water and energy fields are heavily weighted by the projected dominance of
companies over countries. The ability of governmental officials in individual
countries to shape the markets is more than countered by the abilities of
domestic and international companies to shape those markets.
The emergence of the global company is one of the most important developments in
shaping future markets. On one hand, the U.S. is at odds with China over illegal
acquisition of intelligence. On the other hand, Thermo Electron has its entire
air pollution research activities located in China. What is there to steal
from the U.S. when all the information is already in China? The question
is one of internal company security not country security.
In a world of macro-wikinomics, the more information the global company can
share with citizens around the world, the more profitable it will be. The
companies with the best products (those with the lowest life cycle costs) have
nothing to lose by the spread of the knowledge.
It becomes difficult to identify many air/water/energy companies by national
origin. Alstom is a French company. However, its air and energy
groups are in the U.S. It has a new major joint venture with Shanghai
Electric in China to create the world’s largest boiler company. This new company
with sales of $3.6 billion is registered in Singapore.
Individual companies can shape the energy future of countries as large as the
U.S. Sasol, a South African company, is moving forward to build a 96,000
barrel per day plant to convert shale gas to liquid fuels.
It will be the largest manufacturing project in the
history of Louisiana and one of the largest ever in the United States.
Shell, with headquarters in the Netherlands, is also planning a gas-to-liquids
plant as well as LNG and other investments in the U.S. If the two
companies (South African and Dutch) proceed with these plants, it will boost the
U.S. self sufficiency in liquid fuels by more than many of the U.S. publicized
governmental policies being so hotly disputed.
The companies making $10 billion decisions on plant investment will shape the
energy future. If these companies gamble on cheap gas availability and
build these plants, the power companies will not have a competitive gas source.
There will be pressure to build new coal-fired power plants. This is already
happening in Germany, a leading advocate of greenhouse gas reduction. The
high cost of electricity has forced the country to approve some new coal-fired
power plants.
The environmental industry continues to globalize at a rapid pace.
Nederman, Andritz and Doosan are just three examples of companies whose recent
acquisitions make them global environmental players. Yokogawa, Emerson and
ABB are three examples of companies making automation and instrumentation which
are already global but are focused on growth in the regions where they are
weakest.
For more information on McIlvaine air, water, and energy market reports, click
on:
www.mcilvanecompany.com.
Mergers Create New Leaders in the $340 Billion
Air/Gas/Water/Fluids Treatment and Control Markets
Pentair has emerged as the new leader in the market that treats and controls
liquids and gases (including air). Ecolab/Nalco has moved into second
place. This is the conclusion reached in Air/Gas/Water/Fluid Treatment
and Control: World Markets published by the McIlvaine Company. (www.mcilvainecompany.com)
Air/Gas/Water/Fluids Treatment and Control Markets
Ranking |
Company |
2012 Sales
$ Millions |
2013 %
Increase |
2013 Projected Sales
$ Millions |
1 |
Pentair |
7,000 |
3.5% |
7,240 |
2 |
Ecolab/Nalco |
5,000 |
5.00% |
5,250 |
3 |
Flowserve |
4,400 |
7.19% |
4,654 |
4 |
Xylem |
4,000 |
5.79% |
4,230 |
5 |
GE |
3,800 |
4.83% |
3,983 |
10 |
Colfax |
2,000 |
2.00% |
2,040 |
With the addition of Tyco valve revenues, Pentair pump and filtration revenues
generated a combined $7 billion in sales in 2012. The corporation
anticipates a 3.5 percent increase in 2013. This will create revenues of $7.2
billion in the treatment and control sector.
Ecolab has acquired Nalco. With an expected revenue increase of 5 percent in
2013, the company will move into second place with treatment and control
revenues of over $5.2 billion. The former leader, Flowserve, will drop to third
place.
There was another significant merger last year. Colfax acquired Howden.
Most of the Howden revenue is in control (fans) and some is in treatment (heat
exchangers). Colfax supplies pumps, but also has substantial business outside
the treatment and control sector. So Colfax only moved to number ten in the
ranking.
Xylem is a divestiture of ITT. It is, therefore, a smaller player
now than previously. GE is the largest company in the sector. Its
acquisition of Dresser boosted its treatment and control revenues. Nevertheless,
treatment and control is a small portion of total revenues.
The total market for treatment and control is forecasted to rise five percent to
$340 billion in 2013. The leader will only garner two percent of the
market, so the market will remain quite fractured.
The treatment and control is increasingly being recognized as a discrete market.
Various players, however, view the market slightly differently. Parker
Hannifin sees a $100 billion market in which it is the largest player at $13
billion. With its filtration, hydraulics and pneumatics products, it is a
major participant in treatment and control but is not among the top five.
For more information on Air/Gas/Water/Fluid Treatment and Control: World
Markets
http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=71
Hundreds of Active Projects in $19 Billion Canadian Oil Sands Market
There are hundreds of active capital investment projects in the oil sands sector
in Western Canada. Last year investment was more than $19 billion with even
greater expenditures on the horizon. This is the latest forecast in
Oil, Gas, Shale and Refining Markets and Projects published by the McIlvaine
Company. (www.mcilvainecompany.com)
The investment is not only for expansion of the total production, but also for
environmental improvements at existing facilities. The 2012 expenditures
exceeded those in any of the last four years. To meet the expansion from
1.7 to 3.7 million bbl/day by 202l, will require annual expenditures twice the
$19 billion spent last year.
The investment in new facilities comes in multibillion dollar chunks. For
example, Sunshine Oilsands Ltd. has budgeted about
US$3.5 billion for capital investment in its Canadian oil sands projects.
The expenditures to improve the environment are significant.
The Quest Carbon Capture and Storage Project will reduce CO2
emissions from the Athabasca oil sands operation by 35 percent, or more than one
million metric tons a year. The Scotford upgrader plant near Edmonton,
Alberta, processes bitumen into synthetic crude oil. The steam-methane reformer
units at Scotford produce hydrogen for upgrading bitumen, a process that
releases carbon dioxide. Quest will capture CO2 from Scotford
using an amine solvent, a liquid comprising water and amines, then transport it
via an 80 kilometer underground pipeline to a storage site north of Shell’s
Scotford facility to the northeast of Fort Saskatchewan, Alberta. Captured
CO2 will be injected more than two kilometers underground into a
porous rock formation called the Basal Cambrian Sands, which is located beneath
layers of impermeable rock. According to the Quest project website,
“Sophisticated monitoring technologies will ensure the CO2 is
permanently stored.” Shell Canada executed a contract with Fluor Corp for
engineering, procurement and construction (EPC) of the Quest project.
Fluor Corp total cost of the project is estimated at USD1.35 billion.
Projects to improve water quality are also requiring significant capital
investment. Grizzly Oil Sands ULC selected GE’s (produced water
evaporation technology for its Algar Lake project near Fort McMurray, Alberta,
Canada). Phase 1 of the Algar Lake Steam-Assisted Gravity Drainage (SAGD)
project will produce 5,000-6,000 barrels per day of bitumen and, by using GE’s
produced water evaporation process, will recycle up to 97 percent of the
produced water.
Grizzly’s Algar Lake is one of three projects, including Harvest Black Gold, to
choose GE’s patented evaporative technology to treat and recycle its SAGD
wastewater.
For more information on Oil, Gas, Shale and Refining Markets and Projects,
click on:
http://home.mcilvainecompany.com/index.php/component/content/article?id=72#n049
Demand for Wood Pellets Growing Rapidly
Wood pellets are proving to be a good export product for the United States.
McIlvaine tracks the boilers using wood pellets in Renewable Energy
Projects and Update.
The U.K.’s Largest Coal-fired Power Station Switching to Wood Pellet Fuel
The Drax Group Plc., Britain’s biggest source of carbon dioxide emissions, is
converting its coal-fired plant in the northern English town of Selby to what
will probably be the largest biomass plant in the world and will thereby become
one of the leading producers of renewable energies in Western Europe. “We see a
key part of our future as converting from essentially a coal station to a
biomass station,” said Drax CEO Dorothy Thompson in a report of the Bloomberg
news agency.
According to the Bloomberg article, Drax Power plans to invest $1 billion by
2017 to convert the U.K.’s biggest coal-fired plant to burn wood pellets. One of
the six generating units will be fully converted to wood pellets, with two
additional units switching to wood at a later date. The Drax Group is investing
in the modernization of its boilers and the construction of facilities to store
700,000 metric tons of wood pellets. In addition, the Group is designing special
railway carriages for transporting the pellets. Each converted unit will burn
2.3 million tons of biomass annually.
The conversion of whole generating units to burn wood pellets goes far beyond
the Group’s previous plans for co-firing with wood pellets. The current
generating capacity in Selby is 4,000 MW. If, in the future, half of this
capacity if generated from biomass, Drax would be on a par with the biggest
hydropower plants in Europe, and Selby would be larger than any existing biomass
plant, wind farm or solar park. In this case, approximately four percent of
Britain’s power would come from burning wood pellets.
Viaspace Green Energy Signs Its First Supply Contract for Giant King Grass
Pellets
Viaspace Green Energy Inc. announced that it has signed a five-year contract to
supply Giant King™ Grass (GKG) pellets to a home-furniture manufacturer located
in the Guangdong Province of China. This will be Viaspace Green Energy’s first
supply contract for its pellets. The customer will burn the GKG pellets in its
boiler, which currently requires over 2,000 metric tons of fuel per month, for
generating heat and energy to be used in its manufacturing process.
Viaspace Green Energy (VGE) anticipates supplying at least 12,000 metric tons of
pellets per year to this specific customer which is expected to generate
approximately $7.5 million in revenue over the term of the contract. The company
will begin delivering pellets immediately which will result in 4th-quarter
revenues from pellet sales.
Enova Energy Group Announces Wood Pellet Projects
Enova Energy Group, LLC, a vertically-integrated developer and asset owner of
renewable energy projects, has announced that it will build three wood-pellet
projects in Georgia and South Carolina beginning in the 1st quarter
2012. Enova has created a subsidiary, Enova Wood Pellet Group LLC which has a
dedicated management team solely focused on the wood-pellet industry.
Enova will develop these plants to produce wood pellets to be used as a
renewable fuel for export to the European Union under long-term contracts with
public and private utilities. The facilities will each produce 450,000 metric
tons each for a total of 1.35 mm metric tons by 2014 from the facilities to be
exported out of Savannah, GA. Each project will create approximately 150 jobs
during construction and an additional 70 jobs directly at each facility for a
total job creation of over 450 jobs during construction and over 200 permanent
jobs. The wood-pellet projects are expected to cost $330 million and Enova will
meet 80 percent of this with debt.
GN Energy Solutions Acquires Forest Fuels
GN Energy Solutions, a newly-formed holding company focused on the U.K. and
European energy sectors, announced it has acquired an award-winning and
market-leading wood fuel specialist, Forest Fuels. The terms of the transaction
were not disclosed.
Forest Fuels supplies premium-grade wood chip and pellet nationally from a
network of 15 local depots, supported by a central office and customer service
team. Forest Fuels, which also undertakes consultancy and advisory work,
anticipates further growth within the wood fuel sector in the U.K.
The company provides local fuel to local boilers, which reduces the haulage
costs and carbon emissions while stimulating local economies and employment. “We
are delighted to announce this acquisition in Forest Fuels. The U.K. heat supply
market has great potential; the use of biomass for heat and power generation
offers significant potential to provide renewable energy to commercial and
industrial end-users. This acquisition strengthens our already attractive
existing position and further signals our commitment to the biomass sector,”
said Goran Nylin, Chairman, GN Energy Solutions.
GN Energy Solutions incorporates Forest Fuels as a wholly-owned subsidiary, and
is in the process of also acquiring GG Eco Solutions, a leading U.K.-based
renewable energy supplier to the educational, industrial and commercial sectors.
Both businesses will continue to focus on ambitious growth within their own
market sectors.
There are strong synergies between GG Eco Solutions and Forest Fuels. GG Eco
Solutions’ renewable energy supply business will complement Forest Fuels’ supply
capabilities, and as a result the group’s evolving business model.
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
The “Industrial Boiler MACT - Impact and Control Options”
will be the “Hot Topic Hour” on Thursday,
March 21, 2013 at 10 a.m. CDT and again on Thursday April 4, at 10:00 a.m. CDT
Because of the strong interest in this subject, we have scheduled two sessions.
Persons that register for the first session will automatically be registered for
the second session.
On December 21, 2012, the EPA finally issued its long delayed “final” rules for
reducing toxic air pollution, including mercury, HCl and particulates from
industrial boilers, process heaters and certain incinerators. The revised
regulations target the largest polluters, approximately 2,300 industrial boilers
(especially the 600+ coal-fired industrial boilers) and 106 incinerators in the
U.S. The revised rule also gives operators more time to comply – three
years and four years in some cases for both existing and new sources.
After years of delays, the finalized Boiler MACT standard may end the
uncertainty and allow boiler operators to move forward. However, some
industry groups have already signaled that they will contest this rule in court.
A possible reason is that industry groups estimate the capital cost of
compliance at almost three times the $5.1 billion estimated by the EPA.
The following speakers will
help us understand
the “final” Boiler MACT rule, the legal situation and the potential for
additional delays due to litigation. They will also discuss how boiler operators
might meet the challenges of the MACT, identify the optimal control
strategy of each boiler configuration and the required reduction targets and
discuss potential control technologies available
for operators to achieve compliance and the advantages and disadvantages of the
various control technologies as well as criteria for selecting specific
technologies – existing facility configuration, existing control equipment
installed, fuel type and others.
Presenters for Industrial Boiler MACT Impact and
Control Options on March 21, 2013
Bill Liegois,
P.E., Vice President and Senior Project Manager at
Stanley Consultants Corp., will provide an overview of the engineering
approach and critical considerations needed to evaluate, select and implement a
solution for the Industrial Boiler MACT. Topics to be covered will include
a summary of the Big Three Boiler MACT outcomes – Control, Repower, and Retire.
Amy M. Marshall,
PE at URS Corp., will present “An
Evaluation of Boiler MACT Control Costs.” URS Corporation (URS) worked with the
Council of Industrial Boiler Owners (CIBO) and its members to develop an
estimate of the initial capital cost of complying with the Industrial Boiler
MACT for coal, biomass, liquid and process gas boilers and process heaters that
will be subject to emission limits under the rule. Our initial cost
analysis assumed that each unit would install emissions controls if needed to
achieve the Boiler MACT limits, and resulted in an industry-wide capital cost
estimate of $12 billion (higher than EPA’s estimate of $4.7 billion). A
recent refinement to the cost analysis has examined how many units may instead
switch from coal or oil to natural gas and what factors sites will consider when
considering whether to install controls or fuel switch. This presentation will
discuss the analysis.
David W. South,
President, Technology & Market Solutions, LLC, will discuss the CHP option for
achieving compliance with the Industrial Boiler MACT.
BMACT compliance can be accomplished through retrofit of air pollution control
(APC) equipment and fuel switching. Compliance can also be achieved by
installing a combined heat and power (CHP) or cogeneration system. Besides
being more efficient, CHP systems can also generate revenue by the resale of
electricity to the grid, or displacement of purchased electricity by the
industrial source. In either case, grid benefits might arise that will
produce additional revenue. This presentation will outline these benefits
and how off-balance sheet financing is available to facilitate CHP installation
and BMACT compliance.
Presenters for Industrial Boiler MACT Impact and
Control Options on April 4, 2013
Steve Jaasund,
Manager, Geoenergy Division at A. H. Lundberg Associates
Steve Baloga,
P.E., Southern Air Solutions Corp.
James "Buzz" Reynolds,
Vice-president, Wet Electrostatic Precipitators, Siemens Energy, Inc.,
Environmental Systems & Services
To register for the March 21, 2013 “Hot Topic Hour” at 10:00 a.m. (DST),
and the April 4, 2013 at 10:00 a.m. (DST), click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
Headlines for the March 8, 2013 – Utility E-Alert
UTILITY E-ALERT
#1115 – March 8, 2013
Table of Contents
COAL – US
COAL – WORLD
GAS/OIL – WORLD
NUCLEAR
BUSINESS
§
CECO Environmental announces acquisition of Aarding Thermal Acoustics B.V.
§
Mitsubishi Plastics enters into NOx Exhaust Gas Catalyst
Manufacturing
§
Construction Permit for CDS System for Michigan City
§
NRG to exit Power Plant Project in Meriden, CT
§
GMR Group (Singapore) sells 70 Percent Interest in GMR Energy to FPM Power
Holdings
§
Growth of the Mercury Reduction Market Hard to Predict
§
Huge Variable in Fabric Filter Market Depending on Power Regulations in U.S. and
China
§
Xcel Energy reaches Settlement over Clean Air Act Lawsuit
HOT TOPIC HOUR
For more information on the Utility Environmental Upgrade Tracking System,
click on:
http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=72
McIlvaine Hot Topic Hour Registration
On Thursday at 10:00 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 Environmental Upgrade
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.
|
2013 |
|
DATE |
SUBJECT |
|
March 21 |
Industrial Boiler MACT Impact
and Control Options – Part 1 |
Power |
March 28 |
Mercury Measurement and Control
– Part 1 |
Power |
April 4 |
Industrial Boiler MACT Impact
and Control Options – Part 2 |
Power |
April 11 |
Mercury Measurement and Control
– Part 2 |
Power |
April 18 |
Multi-pollutant Control
Technology |
Power |
April 25 |
Control Technologies for Fine
Particulate Matter |
Power |
May 2 |
Flyash Pond and Wastewater
Treatment Issues |
Power |
May 9 |
Clean Coal Technologies
|
Power |
May 16 |
Power Plant Automation and
Control
|
Power |
May 23 |
Cooling Towers |
Power |
May 30 |
Air Pollution Control Markets
(geographic trends, regulatory
developments, competition,
technology developments)
|
Market Intelligence |
June 6 |
Report from Power-Gen Europe
(update on regulations, speaker
and exhibitor highlights) |
Power |
June 13 |
Monitoring and Optimizing Fuel
Feed, Metering and Combustion in
Boilers |
Power |
June 20 |
Dry Sorbent Injection and
Material Handling for APC
|
Power |
June 27 |
Power Generation Forecast for
Nuclear, Fossil and Renewables |
Market Intelligence |
July 11 |
New Developments in Power Plant
Air Pollution Control |
Power |
July 18 |
Measurement and Control of HCl |
Power |
July 25 |
GHG Compliance Strategies,
Reduction Technologies and
Measurement |
Power |
August 1 |
Update on Coal Ash and CCP
Issues and Standards |
Power |
August 8 |
Improving Power Plant Efficiency
and Power Generation |
Power |
August 15 |
Control and Treatment Technology
for FGD Wastewater |
Power |
August 22 |
Status of Carbon Capture and
Storage Programs and Technology |
Power |
August 29 |
Pumps for Power Plant Cooling
Water and Water Treatment
Applications |
Power |
Sept. 5
|
Fabric Selection for Particulate
Control
|
Power |
Sept. 19 |
Air Pollution Control for Gas
Turbines |
Power |
Sept. 26 |
Mercury Control and Removal
Status and Cost
|
Power |
To register for the Hot Topic Hour, click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
----------
You can register for our free McIlvaine Newsletters at:
http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com
191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax: 847-784-0061
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