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
Here are the Headlines for the March 8, 2013 – Utility E-Alert
UTILITY E-ALERT
#1115 – March 8, 2013
Table of Contents
COAL – US
Missouri Coal-fired Power Plant closing in September
Salt River Project negotiating Bigger Share of Coal-fired Power Plant
Multi-Year Rate Plan for Kemper County (MS) Coal-fired Power Plant gets
approval in US
Dunkirk (NY) Coal-fired Power Plant granted Two-Year Reprieve from Shutdown
COAL – WORLD
Alsons and Sagittarius Mines to develop 400 MW Coal-fired Power Plant in
Philippines
Coal India Unit revives Plan for $1.6 Billion Coal-fired Power Plant Mumbai
Ontario, Canada to quit Coal-fired Power Generation
RWE to Shut UK 2,000 MW Didcot Coal-fired Power Plant on March 22
GAS/OIL – WORLD
GE Oil & Gas receives Contract Extension for Sakhalin-2 LNG Plant in Subarctic
Russia
NUCLEAR
DOE plans to ship Hanford Nuclear Waste to New Mexico
Hinkley Point Nuclear Negotiations Strained
Areva completes Fuel Assemblies for Taishan Nuclear Power Plant
Westinghouse rumored to be leading in Temelin Nuclear Bid
Itochu, Mitsubishi and GDF Suez bidding for Turkey’s Second Nuclear Power
Plant
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
HRSG Design, Operation and Maintenance Considerations” was Hot Topic Hour on
March 7, 2013
“Inlet Air Pretreatment for Gas Turbines” is the subject of the Hot Topic Hour
on Thursday March 14, 2013 at 10:00 am CDT
Upcoming Hot Topic Hours
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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