Subject: Big FGD Pump Market

The sudden spurt in construction of new coal-fired plants and the initiatives to reduce sulfur emissions at existing coal-fired plants in the U.S. and China are creating a big market for pumps. In the McIlvaine report Pumps World Markets, the revenue forecasts reflect this opportunity. Hundreds of flue gas desulfurization scrubbing systems will be built. The largest systems will recirculate as much as 400,000 gpm.

Pump capacities to 30,000 gal/min or greater, at heads ranging from 13-20 meters are necessary in order to operate with a minimum number of pump units. Pumps must accommodate lower levels of operation due to unit outages or off-peak electrical demand.  Net positive suction head (NPSH) is 30-50 feet. FGD pumps must be durable, able to withstand constant operation at specified conditions, able to accommodate a range of pipe loads and system transients and be virtually maintenance-free for at least 24,000 hours of continuous operation.

Feed Pumps

Concentrated slurry feed is usually handled by rubber-lined centrifugal pumps. Positive displacement pumps with variable-speed drives are also applicable. Cast-iron, erosion-resistant alloy and rubber-lined pumps are common in limestone systems. Some utilities prefer to use rubber-lined pumps from a single manufacturer for uniformity throughout the plant.

Although centrifugal pumps are widely used, the screw pump that handles limestone slurry feed is a special type of rotary positive displacement pump in which the flow through the pumping elements is truly axial. Thus, the screw pump with its unique axial flow pattern and low internal velocities offers a number of advantages in those few applications where centrifugal pumps cannot be used.

Fresh Water Pumps

In a limestone FGD system, the most likely points at which fresh water would enter are the ball mills, pump seals, and the mist eliminator wash system. A fresh water pump for this service can be a standard centrifugal pump. The important items to be specified are properties of the service water, available net positive suction head (NPSH), materials of construction, type of drive, and type and size of motor.

Recycle Slurry Pumps

The typical slurry pump has many features that set it apart from the typical centrifugal pump used for clear liquids. Wall thicknesses of wetted-end parts (casing, impeller) are greater that in conventional centrifugal pumps. The cutwater, or volute tongue (the point on the casing at which the discharge nozzle diverges from the casing), is less pronounced in order to minimize the effects of abrasion. The radial and the axial-thrust bearing on the slurry pump are heavier, too, than those on standard centrifugal pumps.

Materials of Construction

Pumps are made in two types of materials: all-metal pumps and rubber-lined cast-iron pumps. European and American engineers have tended to use different materials of construction. American power plants have generally installed rubber-lined cast-iron pumps while European plants have generally installed all-metal pumps. Since the pump parts in contact with the slurry are subjected to abrasive-corrosive action, the "wetted" parts must be constructed of a corrosion-resistant material that is either harder than the slurry solids or resilient. Rubber liners are less expensive and weigh less than metal liners or cases, so they reduce the cost and allow for easier handling during maintenance.

The selection of impeller metallurgy normally includes either duplex stainless steel (CD4MCU) or a high-chrome martensitic white iron. The latter is typically 27-28 percent nominal chrome content. Certain formulations with carbon content under two percent enhance resistance to slurries having a pH level exceeding three, with chloride content of 75,000 ppm and higher. While duplex stainless steel can be used over the widest range of pH and chloride levels, maximum hardness with heat treatment may be 325-340 Brinell, while the available white irons may range from 450 BHN to 600 BHN, based on carbon content and heat treatment.

Generally, the advances made in elastomer compounds and metal alloys have resulted in typical wear life of five years for casing liners and three years for impellers.

Pump Suppliers

The two largest suppliers of pumps for FGD units are KSB AG and the Weir Group PLC. These two companies sell more than half of the pumps for this industrial group. KSB is the largest supplier of pumps to the German power industry for FGD units. In 1996 KSB wholly purchased the remaining part of Georgia Iron Works and set up GIW Industries which sells and manufactures their slurry pumps. Weir purchased EnviroTech Pumpsystems in 1995. Weir Minerals includes both EnviroTech and Warman International. Weir had its first experience with pumps for FGD units at the Drax Station power plant and has both direct and acquired experience with the purchase of EnviroTech.

You can track every FGD project around the world in Utility Environmental Upgrade Tracking System http://www.mcilvainecompany.com/utilitytracking.htm

You can continually access forecasts for pumps in every country and every application in Pumps World Markets http://www.mcilvainecompany.com/water.html#n019

POWER-GEN NEWS FROM McILVAINE

Here are some of the coal-fired boiler projects which we are tracking on a weekly basis in the Utility Environmental Upgrade Tracking System.

2006 FGD Startups

Springfield, MO Considering Different Coal-fired Power Plant Scenarios

Black & Veatch is preparing a report for Springfield (MO) City Utilities (CU) on possible power plant construction. One option would have CU build 275 MW "Southwest II," near its existing Southwest Power Station. The other proposal would have CU partner with Empire District Electric and Tenaska Energy in building a larger (550 MW coal-fired) power plant. Possible sites are Aurora, Lamar, and La Russell in MO; Osego, KS; and a fifth site the company hasn't yet identified. Either way, Springfield voters can expect to see a 2004 bond election to finance a new plant. CU is also testing co-firing chicken litter with coal.

MA Dept. of Environmental Protection Holding Hearings on Mercury Reduction

Massachusetts' Department of Environmental Protection (DEP) is holding public hearings to discuss proposed reductions of mercury emissions from coal burning power plants such as Brayton Point and Somerset. Under the DEP's plan to reduce mercury emissions, the state's oldest power plants will be required to control 85 percent of the mercury contained in combusted coal by October 1, 2006, and 95 percent by October 1, 2012.

Steag to Move Ahead with 1,500 MW Plant in New Mexico

Steag Power LLC told Reuters the company was likely to file plans with regulators in early 2004 to build the 1,500 MW coal-fired plant in the Four Corners region of New Mexico.

Iowa Boiler to Co-fire Cereal Residue

The University of Iowa's power plant can keep burning leftovers from the Quaker Oats cereal plant in Cedar Rapids. The EPA approved a waiver requested by Governor Tom Vilsack of the agency's permit review. Since January, trucks have been delivering tons of oat hulls to be used as fuel at the power plant. Vilsack said the project will reduce the use of coal by almost 30,000 tons a year and save the university more than $500,000 in energy costs every year. The EPA's approval will allow the project to continue on a permanent basis.

425 MW Manistee Coal-fired Plant Receives Local Support

City manager Mitchell Deisch supports a 425 MW, coal-burning power plant proposed by Manistee Salt Works/Tondu Corporation for the former General Chemical site on the shores of Manistee Lake, Michigan. "We live in northern Michigan, where there is phenomenal natural beauty all around us," he said. "But we need more than the natural beauty." Manistee's planning commission held public hearings on a special land-use permit for the plant.

Bid Process Open for Mexican Power Plant

CFE, the Mexican state power company, is calling for EPC bids for construction of the new 700 MW Pacifico coal-fired power plant project. The proposed facility, once known as Petacalco 2, will be placed next to CFE's 2,100 MW plant in Guerrero state. Bidding rules are available from CFE now through February 5, 2004. Operation of the Pacifico plant is slated for February 2007.

Construction Contract Signed for 2 x 1,000 MW Huaneng Yuhuan Power Plant

Huaneng Power International, Inc. signed main equipment procurement contracts with Harbin Boiler Co. Ltd., Shanghai Turbine Company, Ltd. and Shanghai Turbine Generator Co., Ltd. for the two 1,000 MW ultra-supercritical coal-fired generating units for the Huaneng Yuhuan Power Plant in China. The two 1,000 MW units are expected to commence operation in the second half of 2007 and the first half of 2008 and will be connected to the East China Power Grid.

Third Quarter NO_x Data Now Posted in Tracking System

We have added third quarter 2003 data to the Utility Plans database which is part of the tracking system. This includes operating hours, inlet BTU, NO_x tons emitted and lbs NO_x/MMBtu. This data is of critical importance because a number of new coal-fired power plants are being permitted. There is pressure to bring the permitted levels below 0.08 lbs/MMBtu of NO_x. Temperature swings negatively affect SCR performance. Therefore reduction efficiency will vary as well.

For more information on the Utility Environmental Upgrade Tracking System click on http://www.mcilvainecompany.com/utilitytracking.htm

In World Power Generation Projects http://www.mcilvainecompany.com/energy.html#40A you can click on any year and generate hyperlinks to power plant projects which will start up at that time. Here are some of the 2008 startups.

U.S.

                        Fuel                                        Project Name and State                                 Size (MW)

Worldwide

             Fuel                                  Project Name and Country                                            Size (MW)

Huge Power Plant Scrubber Markets in the U.S. and China

Over the next 15 years the U.S. and China will purchase flue gas desulfurization (scrubber) systems with a value of over $60 billion. China will actually purchase more equipment, but since the cost of installation in China will be only 50 percent of that in the U.S., the investment will be $22.5 billion in China vs. $37.5 billion in the U.S. Between these two countries there will be a steady flow of orders which will average $4 billion/yr. These predictions, along with those for other countries, are continuously updated in the online McIlvaine report, World FGD Markets. www.mcilvainecompany.com/air.html#no27

NO_x Control Market to Climb to New Peak

Record purchases for gas turbines and coal-fired plants in the U.S. resulted in world sales of selective catalytic reduction (SCR) systems of over $4 billion in 2002.  This year sales will be down by 20 percent but will still be the second highest ever. In NO_x Control: World Markets, http://www.mcilvainecompany.com/air.html#N035  McIlvaine Company points out that, a market that was measured in hundreds of millions of dollars prior to 2000, is now measured in billions. The equipment market will not soon reach the 2002 peak again but in the next decade will nevertheless net $25 billion in sales.

The market for catalysts is very bright in that this is a consumable product.  The 2002 peak for catalyst sales will be exceeded in coming years as replacement catalyst becomes a big segment of the market. Whereas the U.S. has been a small market compared to Asia and Europe in the 1980s and 1990s, now the U.S. market is equal to the other regions combined.

Fabric Filter Revenues to Top $4.5 Billion In 2007

Sales of fabric filter systems will exceed $4.5 billion in 2007 up from $3.9 billion in 2003 according to the McIlvaine Company in its online continually updated Fabric Filters and Elements: World Markets http://www.mcilvainecompany.com/air.html#N021. Fabric filters are also called baghouses or dust collectors. They are used in a wide variety of applications from grain dust capture to purification of steel mill exhausts.  However the biggest boost to the industry is its new popularity for removing flyash and mercury from power plants.

Sales to power plants will more than double over the 2000-2007 timeframe as power plants switch from electrostatic precipitators to fabric filters. Most coal-fired power plants built in the U.S. in the future will utilize fabric filters for flyash capture. Many old and new plants will also use fabric filters to collect gypsum in processes designed to reduce SO₂ emissions. By 2007, the annual market for fabric filter systems for this segment will exceed $1 billion/year.

Market for Air Pollution Monitoring and Testing Revenues

Of $1.6 Billion Predicted for 2006

The world market for monitoring and testing of air pollutants will exceed $1.6 billion/yr by 2006 up from $1.2 billion in 2002. This is one of the predictions in the continually updated online report Air Pollution Monitoring and Sampling World Markets http://www.mcilvainecompany.com/air.html#No31. The forecasted revenues include continuous monitoring systems, intermittent stack testing services, and the hardware needed to perform these tests. The forecast also includes supplies such as protocol gases and filter paper. Applications range from the yearly test of a bakery to determine ethanol emissions at a cost of $5,000 to the ownership and operation of a multi-pollutant continuous monitoring system in a large waste to energy plant where the acquisition cost of the system is $900,000, not including any service or supplies

Ultrapure Water Systems Market to Bounce Back By 2004

The downturn in semiconductors forced a 20 percent overall drop in the ultrapure water system market in 2001 over 2000. However growth in pharmaceutical and coal-fired power segments will help push the market past the 2000 peak of $2 billion by 2004. In Ultrapure Water: World Markets http://www.mcilvainecompany.com/water.html#N029 published online by the McIlvaine Company, the world forecast for 2004 is $2.2 billion for systems and materials. The 2005 market will be $2.4 billion and then jump to $2.8 billion in 2006. Ultrapure water is required to generate steam in power plants, to wash chips in the semiconductor industry, and to mix with drugs injected into the human body

Pump Sales to Hit $34 Billion in 2007 not 2006

Forecasts of revenues for the world pump industry have been revised downward in the last year. Nevertheless, according to the online Pumps World Markets http://www.mcilvainecompany.com/water.html#n019 report published by the McIlvaine Company, sales will grow from $28.9 billion in 2003 to $34.2 billion in 2007. Earlier McIlvaine forecasts projected crossing of the $34 billion threshold in 2006.

More than 10,000 manufacturers make a wide variety of pump types. The top five suppliers have sales of just under $6 billion (22 percent of the total market). These companies are ITT, Flowserve, Grundfos, Ebara, and KSB. The second tier of five companies has just 10 percent of the market. The third tier of five companies combines for just a 5.5 percent market share.

World Valve Market to Exceed $44 Billion By 2007

The world market for industrial valves will grow from $38 billion in 2003 to over $44 billion in 2007. This new forecast has just been incorporated into the online Industrial Valves: World Markets http://www.mcilvainecompany.com/water.html#N028  report published by the McIlvaine Company.

In terms of valve types, the automatic regulatory and control valve segment will be the largest with over a 20 percent market share.  Ball valves will garner almost the same share followed in order by gates and globe valves, butterfly valves, and industrial plug valves. A variety of miscellaneous valve types are aggregated in a sixth category which will account for $7.6 billion in sales in 2007.

Desalination Will Be the Growth Engine Leading to an
$8 Billion Membrane System Market in 2007

By 2007, the annual orders for membrane desalination equipment will reach $1.8 billion. This in turn will drive the total cross flow membrane equipment market worldwide to over $8 billion in 2007.  This is the conclusion of the McIlvaine Company in the latest updates to its online RO, UF, MF World Markets http://www.mcilvainecompany.com/water.html#N020