Where Are the High Growth Air and Water Opportunities? Find Out on May 10!
Answers to this question will be provided on May 10 in a 90 minute webinar conducted by the McIlvaine Company. The merger of Tyco Flow Control and Pentair coupled with the acquisition of Howden by Colfax indicate the recognition of a $330 billion market which covers the movement of gases (including air) and liquids (including water) as well as their control and treatment.
There are a number of very attractive growth segments which provide opportunities for expansion and acquisition. Here are some of them which will be identified and quantified in the session:
• Unconventional gas and oil including gas and oil shale as well as tar sands,
• International shipping including ballast water treatment and stack gas cleanup while burning bunker fuels,
• Sales of equipment to reduce air toxics and to regulate water extraction and discharge to receiving streams and lakes based on U.S. EPA regulations for power plants.
• New approaches to NOx and odor control of air and disinfection of water including use of chemicals and UV oxidation techniques,
• Potential for innovative technologies created by a more holistic view of opportunities such as co-locating municipal wastewater treatment and power plants,
• The evaluation of China as both a market for products and services and potential breeding ground of international competition,
• Necessity of evaluating all international growth opportunities through the prism of purchasing parity and adjustments for inflation,
• Leveraging various product combinations for highest growth. The advantages of chemicals, filter media and other consumables as opposed to components, instrumentation or systems.
This session is available free of charge to any subscriber to McIlvaine air or water related market reports. It is available at a price of $400 for non-subscribers. However, this payment is deductible from future report purchases.
To register for the Hot Topic Hour on Thursday, May 10 at 10:00 a.m. (Central time) click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
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.
DATE Non-Subscribers Cost SUBJECT Webinar Type
April 26, 2012 $125.00 Particulate and Condensable Removal Power
May 3 and 4, 2012 $125.00 Flyash Pond and Wastewater Treatment Issues Power
May 10, 2012 $400.00 $330 Billion Market for Air/Gas/Water/Liquid/Flow and Treatment (high growth segments plus regulatory, technology, application, and market drivers) Market Intelligence
May 17, 2012 $125.00 Role of Renewable Energy in U.S. and World Power
May 24, 2012 $125.00 Status of Carbon Capture Programs and Technology Power
May 31, 2012 $400.00 Air Pollution Control Markets (geographic trends, regulatory developments, competition, technology developments) Market Intelligence
June 7, 2012 $125.00 Dry Sorbent Injection and Material Handling in Coal-fired Power Plants Plants Power
June 14, 2012 $125.00 Report from Power Gen Europe (update on regulations, speaker and exhibitor highlights) Power
June 21, 2012 $400.00 Pumps and Valves (impacts of mergers, new markets, market drivers, forecasts) Market Intelligence
June 28, 2012 $125.00 Greenhouse Gas Strategies for Coal-fired Plant Operators Power
July 12, 2012 $125.00 CFB Technology and Clean Coal
(Update on CFB Reactor Technology) Power
July 19, 2012 $400.00 Future for Coal, Gas, Nuclear and Renewables (forecasts by region and discussion of market drivers and regulatory constraints) Market Intelligence
July 26, 2012 $125.00 Beneficial Byproducts of Coal Combustion and Gasification Power
August 2, 2012 $125.00 Mercury Control and Removal Status and Cost Power
August 9, 2012 $400.00 Filter Media (forecasts and market drivers for media used in air, gas, liquid, fluid applications both mobile and stationary) Market Intelligence
August 16, 2012 $125.00 Report from Coal-gen (highlights of speeches and exhibitions) Power
August 23, 2012 $125.00 Report from Mega Symposium (highlights of speeches and exhibitions at this important air pollution conference) Power
August 30, 2012 $400.00 Instrumentation for Air, Gas, Water, Liquids (forecasts , market shares, growth segments)

Here are the Headlines for the April 26, 2012 – Utility E-Alert
UTILITY E-ALERT
#1072 – April 26, 2012
Table of Contents
COAL – US
 Lawsuit opposing Colorado Power Plant Conversion from Coal- to Natural Gas-firing
 PPL does not want EPA to Release Data on Colstrip
 Kemper County IGCC Power Plant granted New Approval
 EPA, AEP agree on Northeastern Regional Haze Plan
 KCP&L requests Rate increase from Kansas Corp. Commission
 PacifiCorp will probably Retire 172 MW Carbon Power Plant in Utah
COAL – WORLD
 ABFPL to supply Five Supercritical 660 MW Turbine Islands to India
 SPCL planning 2x660 MW Power Plant in Junagadh District, Gujarat, India
 Group of Ministers reviewing Coal-fired Power Projects in India
 Maharashtra cracking down on Firing Coal with high Ash Content
 Neyveli Lignite to set up 2000 MW Power Plant in Odisha, Orissa, India
 300 MW Mundra Area (Gujarat, India) Power Project being investigated
 1600 MW Shri Dada Dhuriwale Power Project begins acquiring Land
 Polimex leads race to build Enea Kozienice Power Block
 Brazil MPX waiting for Court Ruling on 2,100 MW Castilla in Chile
 National Green Tribunal to hear Challenge to 4x600 MW Raigarh Power Project (India)
 Coal Supply Agreements in India
 Sembcorp granted approval for 1,200 MW Coal-fired Quang Ngai Power Project in Vietnam
 B&W Canada to update Boiler at SaskPower Shand
GAS / OIL – WORLD
 Mott MacDonald is Owner’s Engineer for 2,000 MW Sur Combined Cycle Power Plant in Oman
 Alstom to rehab Khor Al Zubair Power Plant in Iraq
 Scanpower and Siemens to build 1600 MW Power Plant in Lekki, Nigeria
 ESB plans 1500 MW Power Plant in Knottingley, UK
 MHI to supply Gas Turbines for Sundance 7 in Canada
NUCLEAR
 Germany will need to build New Power Plants because of Exit from Nuclear Power
 EDF committed to Sizewell Power Plant
BUSINESS
 Emerson has automated 2x500 MW Simhadri Stage II
 Mozambique Power Supply constrained until 2020
HOT TOPIC HOUR
 “Particulate and Condensable Removal" was the Hot Topic Hour on April 26, 2012
 "Flyash Pond and Wastewater Treatment Issues" is Hot Topic Hour on Thursday, May 3 and Friday, May 4, 2012
 Where are the High Growth Air and Water Opportunities? Find Out on May 10!
 Upcoming Hot Topic Hours
For more information on the Utility Environmental Upgrade Tracking System, click on: http://www.mcilvainecompany.com/brochures/energy.html#42ei.
Air and Water Product Prices Are Up 9 Percent Since 2010
Prices of equipment, services and consumables utilized in air and water pollution control have risen 9 percent in the two years starting with the spring of 2010. This is a world average and varies considerably in individual countries
Typically, market forecasts (McIlvaine is no exception) are based on the value of the dollar as of a certain year. If the user of the report wants to determine the revenue forecast in actual dollars for a current or future year, he must add in an inflation factor. McIlvaine uses a base year of 2010. On a world basis, 2011 revenues have to be multiplied by 1.05 and projected 2012 revenues have to be multiplied by 1.05 x 1.04 or 1.09 to convert revenue forecasts to current dollars.
The prices for environmental equipment and services are up about two percentage points above general inflation which has been 7 percent worldwide in the two year period.
Inflation rates vary considerably from country to country. They range from 10 percent in Turkey to 1 percent in Sweden.

2012 Projected Inflation Rate
Country Percent
China 3.6
Germany 2.0
India 7.5
Sweden 1.0
Turkey 10.0
U.S. 2.6
In general, the price hikes are large and do not take place yearly but in reaction to changes in material and energy costs. Here are some examples:

Company Product % Increase Month Year
Bonney Forge Cast Steel valves 6.5 6 11
A.Y McDonald Submersible turbine pumps 5 11 11
A.Y McDonald Dewatering pumps 6 11 11
Sherwood All valves 4-7 9 11
Kennedy Valve Fire control valves 7 2 12
Ahlstrom Filtration media Up to 12 1 11
Dow Filtration membranes Up to 12 1 11
Dow Ion exchange resins Up to 10 11 10
Xylem Canada Water and wastewater products 2.5 6 10
Amway Air purifier 25 9 11
Amway Carbon replacement filter 8 9 11
Another requirement is to adjust revenue figures to the pricing in individual countries. Where the market is set by import prices then this is not a requirement. However, when the prices are set by in–country competition, it is necessary to adjust market forecasts to reflect the local pricing. This can be done on an approximate basis by comparing nominal GDP to purchasing power parity GDP.

Country 2011 Purchasing Power
Parity : $ Trillions 2011 GDP
Nominal -
$ Trillions Ratio
United States 15 15 1
China 11.2 7.3 0.65
India 4.5 1.7 0.37
China has built its manufacturing base to build higher technology products. As a result, local competition sets the pricing for more products than in India which must still import much of the high technology products. Chinese local pricing has risen substantially in recent years and is now at 65 percent of the U.S. level. This is in contrast to India where prices of locally manufactured goods are only 37 percent of the U.S. level.

Details on price increases, inflation and purchasing parity are included in all the McIlvaine air, water and energy market reports. For more information on these reports, click on: www.mcilvainecompany.com.
Air and Water Instrumentation Market to Exceed $14.1 Billion This Year
Expenditures for portable, laboratory and continuous measuring instruments for air and water will exceed $14.1 billion this year. This is the forecast made by McIlvaine in its Air and Water Monitoring publications. (www.mcilvainecompany.com) The definition of the market is based on the McIlvaine concept of “decisive classification” rather than scientific or literal classification. Some process analyzers, software and transmitters are included in the forecast because this is the way many of the suppliers view the market and, most importantly, the segmentation which purchasers use to sort through the alternatives.

World Air and Water Instrumentation Revenues 2012 ($ Millions)

Laboratory
Portable and Field, Emergency Response Online
Continuous
Plus Software Ambient-
Fence Line,
Remediation
Total
Municipal Water/Wastewater, Agricultural, Aquaculture
1,000 500 800 700 3,000
Oil, Gas, Refining, Chemical 300 200 1,000 300 1,800
Mining and Minerals 80 20 500 100 700
Electronics and Pharmaceutical
150 50 280 20 500
Pulp/Paper, Food, Beverage and Miscellaneous Industrial 100 100 300 100 600
Power Including Nuclear, Fossil, Hydro, Renewables 800 400 2,400 400 4,000
Government, Military and Academia 1,000 500 200 300 2,000
Commercial, Including HVAC Cooling, Restaurants, Pools and Spas, Vessels 400 700 400 0 1,500
Total 3,830 2,470 5,880 1,920 14,100
Oxygen measurement is one of the largest segments in the air and gas sector. It is used for control and safety in combustion applications. It is also used for inerting systems and gas storage. It is used to determine the quality of CO2 used in brewing. It is one of a number of parameters measured with air pollution continuous emission monitor systems.
Dissolved oxygen measurements in water are a major water segment with analyzer revenues approaching $200 million/yr. Continuous monitors are needed in beverage, aquaculture and remediation. Accurate pH, O2, conductivity and turbidity measurements are critical in modern wastewater treatment.
This year $1 billion will be spent for continuous emission monitoring systems for stack gases. It is divided into the following categories:

Stack Gas Continuous Emissions Monitor Revenues 2012
Segment Percent
Power 50
Oil, Gas, Refining, Chemical 20
Municipal Wastewater 5
Mining and Minerals 10
Other 15
One of the fastest growing segments is continuous monitors for oil and gas. Water quality instrumentation is needed to monitor aquifers and surface water in proximity to shale gas operations. Gas chromatographs can continuously measure natural gas Btu content, an important parameter in energy transactions.
The total process control and instrumentation market exceeds $70 billion worldwide. The measurement and control of gases and liquid processes is just a small portion of the total, but it is difficult to completely compartmentalize this portion. The oil and gas and chemical sector listed above accounts for more than $15 billion in process instrumentation purchases including the following segments:

Oil, Gas, Refining, Petrochemical, Chemical Process Instrumentation Revenues 2012

Product Category $ Billions Air/Water
Inclusions
Process Control Systems 4.0 0.2
Control Valves and Actuators 4.2 0.0
Application Software 1.2 0.1
On-Line Process Analyzers 1.6 0.4
Flow, Temperature, Pressure, Level Transmitters 4.0 0.3
Total 15.0 1.0
Only $1 billion out of a total expenditure of $15 billion is included in the McIlvaine air/water forecast.
For more information on McIlvaine Air and Water Monitoring publications, click on: www.mcilvainecompany.com.
Air Pollution Control System Purchases to Exceed $51 Billion in 2012
Sales of air pollution control systems will exceed $51 billion this year. The power industry will account for nearly half the purchases. This is the finding of the McIlvaine Company based on aggregating information from its various market reports.

2012 World Revenues for Air Pollution Control Systems
($ Billions)
Product Power Industrial Total
Fabric Filter 1 5 6
Scrubber 0 5 5
Precipitator 7 1 8
FGD 7 0 7
DeNOx 6 1 7
Thermal/Catalytic 0 2 2
Fans and Compressors 4 12 16
Total 25 26 51

Fabric filters have not yet penetrated the worldwide power industry. As a result, sales to the cement, steel, mining and other industrial segments will be five times larger than sales to the power segment. In future years this ratio is predicted to change substantially as power plants replace precipitators with fabric filters to meet new regulations on air toxics and fine particulate.
The FGD systems purchased by the power industry are similar to the scrubbing systems purchased by the industrial sector. The power plant purchases of DeNOx systems using catalyst will greatly exceed the combined DeNOx and thermal/catalytic systems purchased by industry.
There will be substantial purchases of fans and compressors associated with these systems. When air pollution control equipment is added to existing combustion systems it creates substantial back pressure. This often results in replacement of existing system fans.
Asia will account for more than half the air pollution control system purchases. China will purchase more power plant air pollution control equipment than all of the European countries combined.
The market has become global. Some of the largest suppliers are home based in Europe and Japan. China has the leading precipitator companies in terms of revenue generation. The U.S. leads in terms of production of filter media. The U.S. is also the leader in FGD systems. However, this leadership is based on the inclusion of Alstom, a French company, as a U.S. based supplier. Its air pollution operations are in Tennessee and have been since it acquired Combustion Engineering many years ago.
Information on the larger market is found in Air Pollution Management.
There are specific reports available as follows:
Electrostatic Precipitators: World Market
http://www.mcilvainecompany.com/brochures/air.html#n018
World Fabric Filter and Element Market
http://www.mcilvainecompany.com/brochures/air.html#n021
FGD World Markets, click on: http://www.mcilvainecompany.com/brochures/air.html#N027
Scrubber/Adsorber/Biofilter World Markets http://www.mcilvainecompany.com//brochures/air.html#n008
Thermal/Catalytic World Air Pollution Markets http://www.mcilvainecompany.com/brochures/air.html#n007
Large Scale Solar Projects Advance Around the World
Not just in the sunny southwestern United States but around the world large scale solar energy projects are under way. McIlvaine tracks these projects in Renewable Energy Projects and Update.

3Power Energy Group Acquires 100 MWt PV Solar Power Plants in Italy
3Power Energy Group Inc. announced that the company entered into a frame agreement with a Chinese Investment group to acquire 100 MWt PV Solar Power Plants from their portfolio in Italy. Projects are financed and produce electricity into the national grid under long term power purchase agreements.
The projects are located in several high sun radiations regions in Italy. The total investments in these projects are quoted around U.S. $500 million out of which $400 million are financed by long term banks credit facility. The projects when acquired will be an immediate source of 15 years sustainable revenues under a power purchase agreement at prefixed price.
BrightSource Energy’s Power Tower Technology Selected by Sasol for South African Solar Power Plant Design
BrightSource Energy, Inc., a leading solar thermal technology company, announced that Sasol has selected BrightSource’s power tower solar thermal technology following a worldwide review of solar technologies. Under the agreement, BrightSource and its partner Alstom, global leader in power generation equipment, will conduct a comprehensive front-end engineering and design (FEED) study for the South Africa market.
The FEED study is a critical step in the design and deployment of a solar thermal power plant. Sasol will use the information from the study to determine how best to deploy BrightSource’s technology in the markets it serves.
“Sasol looks forward to the completion of the FEED study by one of the world’s leading concentrated solar power (CSP) technology providers. South Africa is blessed with an abundance of a natural energy source in the form of sunlight. This CSP project has the potential of significantly expanding Sasol’s new energy portfolio and will in turn contribute to the country’s transition to a low carbon economy,” said Henri Loubser, Managing Director of Sasol New Energy.
To meet its growing clean power demand, South Africa’s Renewable Energy Independent Power Producer Procurement Program, run by the country’s DOE, is targeting the addition of an initial 3,725 MW of renewable energy by 2016. With one of the fastest growing economies in the world, total energy supplies in South Africa are projected to more than double over the next 20 years to more than 85 gigawatts, including the planned development of 18 gigawatts of new renewable energy, according to the integrated resource plan recently adopted by the government.
Torresol Energy Launches Commercial Operations of Twin Solar Thermal Plants in Spain
Torresol Energy, a joint venture between Masdar – Abu Dhabi’s renewable energy company and SENER – the Spanish engineering and construction firm, announced at the World Future Energy Summit in Abu Dhabi that the Valle 1 and Valle 2 plants – two identical 50 MW parabolic trough plants, located in Cádiz, in the South of Spain, had commenced commissioning in January 2012. The plants are equipped with thermal storage which will allow them to continue to produce power, even when there is no solar radiation, for up to 7.5 hours.
Construction on Valle 1 and Valle 2 began in December 2009, and was completed in December 2011. In January 2012 the plants were connected to the Spanish national grid for commercial operations. Roughly 4,500 workers worked over 2,700,000 hours to build and launch the twin projects during the two construction years.
SENER led the Engineering, Procurement and Construction (EPC) contract for the two projects, as project manager, and has provided 100 percent of the technology and engineering for both plants. From the outset, the two plants were built sequentially, including processing various types of supplies, overseeing multiple contractors, providing quality control of the execution and, above all, planning and supervising construction as it progresses.
Each of the plants will produce 160 GWh of power per year, equivalent to the amount of power consumed by 40,000 households.
Leadcom Implemented Three Large-scale Solar Power Systems in Chile for One of the World’s Largest Telecom Operators
Leadcom Integrated Solutions designed and successfully implemented three large-scale solar power systems for one of the world’s largest telecom operators. The systems were implemented in Chile’s Atacama Desert, an area with very harsh climate conditions, where day and night temperature vary by more than 30º. The completion of this project marks another success story for Leadcom, further enhancing its credibility in the alternative energy space for telecoms. In these projects, Leadcom combines its capabilities, knowledge and experience in project management, civil works, electricity, logistics and implementation in difficult areas. During the implementation phase, Leadcom used more than 40 field technicians.
Leadcom is one of the world’s largest telecommunications groups. The group operates dozens of subsidiaries worldwide, primarily in Africa, Central and South America. It currently employs over 700 employees around the world and is a supplier of services in the field of deployment of telecommunication infrastructures.
To support the rapid increase of communication traffic (data and voice), the operator needed to expand the capacity of 3 fiber optic nodes that are part of Pan American Fiber Optic Network connecting Chile to Peru, located in the Atacama Desert, 1,200 km from Santiago.
The solution includes battery cycling technology and large PV (solar) arrays (16kWp each) to maintain the charge of the batteries and keep the site powered 24/7.

Solar Frontier Supplies 10 MW Project in Japan
Solar Frontier activated the Mt. Komekura Solar Power Plant in Yamanashi Prefectrue, Japan. Solar Frontier supplied 10 MW of CIS thin-film solar modules to the power plant through Meidensha Corporation. The facility, operated jointly by Yamanashi Prefecture and Tokyo Electric Power Company (TEPCO), started operations recently and is among the largest solar power plants in Japan.
The Mt. Komekura Solar Power Plant is being built as part of Yamanashi Prefecture’s Global Warming Countermeasures Plan for eliminating greenhouse gas emissions. The plant is expected to generate about 12 million kWh of electricity annually, equal to the annual electricity use of approximately 3,400 households.
Solar Frontier’s CIS thin-film solar modules have achieved a higher conversion efficiency rate than many other thin-film modules, and they are able to deliver higher overall energy output (kWh) under real weather conditions. In Japan, the outstanding performance of CIS thin-film solar modules has been demonstrated at the Yukigunigata Megasolar power plant in Nilgata Prefecture and at large-scale solar power production facilities at Solar Frontier’s Miyazaki production plants.
Solar Frontier started operation of all production lines at its gigawatt-scale Kunitomi Plant in 2011, becoming one of the world’s largest solar module factories. With its large-scale production enterprise, the company will be able to supply increasing demand for solar power in Japan as a result of the enactment of Feed-in-Tariffs in July this year while continuing to supply customers around the world.
Canadian Solar and Al Fahad Group Announce Sales Agreement for One of the Largest Solar PV Projects in Abu Dhabi
Canadian Solar announced an agreement with the Al Fahad Group, a diversified conglomerate with expertise in Defense & Intelligence, Homeland Security, Networking & Communications and Power.
Under the agreement, Canadian Solar will supply more than 1.5 MW of its solar modules to the Al Fahad Group, which is spearheading one of the largest solar PV projects in Abu Dhabi, considered one of the pioneers for renewable energies in the Middle East. This will be a governmental venture, which was agreed upon during the recent World Future Energy Summit (WFES) held in Abu Dhabi.
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
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Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvaine@mcilvainecompany.com
Copyright © 2012 McIlvaine Company. All Rights Reserved
191 Waukegan Road Suite 208 | Northfield | IL 60093
Ph: 847-784-0012 | Fax: 847-784-0061
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