Webinar Covering Gas Turbine Market Thursday, March 10, 2016
We invite you to join us Thursday, March 10 for a free webinar to discuss the market for gas turbine combined cycle systems and components. This market is growing faster than other markets in the U.S. as well as other countries. Click Here to Register
$40 Billion Gas Turbine System Equipment and Parts Market Will Be Impacted By Many Factors
The present market for gas turbine system equipment and parts is $40 billon. The market will grow faster than GDP over the next 10 years, but the rate of growth for systems is subject to a number of variables. The rate of growth for some individual products will be much higher. For example, the revenue for gas intake filters and high performance coatings will grow at double digit rates even if the number of units does not.



Due to normal operating temperatures, there is considerable deterioration of parts and need for replacement. The more recent practice of cycling operations as many as 200 times per year is creating flow accelerated corrosion (FAC) problems and increasing part deterioration rates. As a result, the present market for parts and consumables of US$11.5 billion will grow faster than the new plant market. Another reason for the comparative gain of parts over new product purchases is the increasing ratio of plants in place to new plants being constructed.

More than $4 billion will be spent for pumps and valves in 2016. Some of the product forecasts incorporate portions of other forecasts. For example the forecasts for stainless steel and high performance coatings are in part included in the pumps and valves forecasts.
There is a very large market for treatment chemicals including corrosion control and scale inhibitors. Intake water treatment for the steam and cooling systems, ultrapure water treatment for fogging nozzles, and wastewater treatment all require substantial yearly expenditures for chemicals.
The rate of growth for various products in coming years will be driven by a number of variables, including the following:
Drivers Impacting Future Markets for Gas Turbine Equipment and Parts
Category Factor Driver Market Impact
General Fuel price Low gas prices Based on long term forecast not present prices
Alternative power generation High cost of offshore wind, subsidies Europe moving back to gas
Electricity prices Regulated vs. unregulated Total cost of ownership
Products Air intake filters Higher efficiency for turbine protection Could boost market by 50%
SCRs Regulations in Europe and elsewhere Big increase in market where required
Pumps FAC and other cycling challenges Market growing faster than total GT market
Valves FAC and other cycling challenges Market growing faster than total GT market
Seals Pump, valve, compressor and new turbine designs Market growing faster than total GT market
Zero liquid discharge (ZLD) systems Regulations, aridity and reluctance to wait for water permits Growing market in U.S., China and elsewhere
Stainless Steel New turbine designs Continuing opportunity for high performance materials
HRSGs and
steam turbines Addition of steam tail to existing peakers to meet energy and greenhouse gas goals Substantial market impact as many plants are upgrading
Regulatory Greenhouse gases Limits or penalties on CO2 emissions Negative impact on market vs. renewables but positive vs coal
Harm to aquatic life Regulations forcing less intake and less once through water ZLD, dry cooling, municipal water reuse
Water discharge limits U.S. has new regulations More ZLD
NOx emissions Tough regulations in U.S. and potential new regulations in Europe Steady positive impact on SCR and urea markets as prices are lowered in various countries
Regulatory impacts will be important in determining not only the volume of products which will be sold but the margins at which those products will be sold. International suppliers will want to offer products at higher prices but with lower total cost of ownership than the local suppliers.
For suppliers, the primary thing to realize is that regulated utilities in the U.S. go through a rate-making process which guarantees a reasonable profit based on reasonable expenses. These utilities are going to be more interested in low cost solutions, otherwise the cost may not be fully accepted by a utility commission.
Unregulated entities, on the other hand, are much more market oriented and motivated by profit. These companies will be interested in cost effective solutions, which might include efficiency improvements or lower long term maintenance and operation cost improvements.
Detailed market forecasts of the total market are included in 59EI Gas Turbine and Combined Cycle Supplier Program
Forecasts for specific products are found in MARKETS
A webinar on March 10 at 10:00 a.m. CST will cover the market and many of the variables. It is free of charge. Click Here to Register
Knowledge Beats Muscle in Gaining Market Share in Flow Control and Treatment Industries
The economic progress of the world can be characterized by the increasing market share of knowledge over muscle. In the flow control and treatment industry this knowledge to muscle ratio will change more rapidly in the next decade than at any time in the past.
Increasing market share in the flow control industry can be likened to a treasure hunt. Knowledge will determine the flow control treasure hunt winners in the future. The lone hunter who understands each clue better will win out over the aggregate muscle of multiple hunters engaged in unfocused searching.
The value proposition is the first clue. Why will the product reduce the total cost of ownership more than the competitor’s product in each specific industry and process within that industry? Muscle is a big promotional investment claiming superiority. Knowledge is creditable facts and research which is organized and available to those who can best use it.
The second clue is the specific market potential in each geography, industry and process. Muscle is top down guesstimates based on a myriad of statistics and assumptions. Knowledge is the bottoms up analysis of each industry and process
The third clue is the identification of projects and customers. Large customers and large projects represent a major portion of the market. They need to be identified long before the typical sales lead would be received. Within the purchasing entity there are behind-the-scene decision makers who are very important. To increase market share it is important to reach these individuals.
The fourth clue is a coordination. Management, engineering and sales should all be involved in creating value propositions for each product in each industry. Market forecasts should be in sufficient detail to create quotas or targets for each sales territory. Feedback from these sales people should be part of a continuous effort. Many opportunities involve multiple geographies and products. Voluntary bottoms up rather than top down program using the KOC strategy (Knowledge, Organization and Collaboration) will pay big dividends.
The McIlvaine Company has a number of treasure hunt programs for flow control and treatment companies. More information on them can be obtained by contacting Bob McIlvaine at rmcilvaine@mcilvainecompany.com or 847-784-0012 ext. 112.

A Complex Multitude of Air Quality Decisions Need to Be Made by the World’s Coal-fired Power Plants
Coal-fired power generators supply more electricity than gas, wind or solar. Expenditures for new power plants continue at a rate in developing countries sufficient to ensure that the net world coal-fired generating capacity will continue to increase. Both existing power plant operators and new power plant developers have a large number of complex decisions to make about achieving air quality.
Power Plant Air Quality Decisions is a combination of alerts and decision systems, which helps the power plants make the best decisions and helps suppliers understand the issues and options.
Here are some of the options:
Option A Option B Option C
Mercury Reduction
Activated Carbon Chemicals in Fuel Absorber Module
Mercury CEMS Sorbent Traps Both
DeNOx
SCR SNCR Catalytic Filter
SO2
Wet Scrubbers Dry Scrubbers Direct Injection
Lime/Limestone Sodium Ammonia
Particulate
Precipitator Fabric Filter Hybrid
Opacity monitor Mass Monitor with Physical Capture Mass Monitor with Electronic Measurement/ Conversion
Discrete Particles Condensibles Total particulate
Hourly limits Daily limits Yearly Limits
Selenium Capture
Activated Carbon Scrubber Not Captured
HCl Capture
Chloride Salts in Dry Mix Chloride Salts Washed from Gypsum 30% Grade Hydrochloric Acid
There are a number of other decisions which influence the above choices. If there is a market for flyash, it will impact the choice of mercury and SO2 capture technologies. If the expected plant life is long, then the particulate and SO2 technology selections will be different than if the remaining life is short.
There are many new developments which are likely to change future decision making. The catalytic filter with direct sorbent injection combines three devices into one. More importantly, it provides clean hot gas at 850°F and facilitates maximum heat recovery and energy efficiency.
The use of gasified waste as a “reburn” fuel reduces operating costs and reduces the CO2 footprint. The use of treated municipal wastewater plus zero liquid discharge (ZLD) technology makes the plant a positive contributor to improved water quality in the region.
The extraction of rare earths and valuable metals from the ash promise to make coal-fired power an important resource.
For more information on 44I Power Plant Air Quality Decisions click on: http://home.mcilvainecompany.com/index.php/other/2-uncategorised/86-44i
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis
Here are some headlines from the Utility E-Alert.
UTILITY E-ALERT
#1262 – March 4, 2016
Table of Contents
COAL – US
 Supreme Court bars Coal Industry Petition for unlimited Mercury Emissions
COAL – WORLD
 POSCO Energy to build Coal-fired Power Plant in Vietnam
 China and Pakistan sign Contract to build a Coal-fired Power Plant in Pakistan
 Edenville Energy to invest in Coal-fired Power Plant and Coal Mine in Tanzania
 Marubeni may build a Coal-fired Power Plant in Egypt
 Meubolah Coal-fired Power Station Two Unit expansion in Aceh Province, Indonesia
 Proposed 625 MW Unit 9 planned for Banten Suralaya Power Station in Banten Province, Indonesia
 300 MW Unit 3 Kaltim Teluk Balikpapan Power Station expansion announced in East Kalimantan Province, Indonesia
 PLN to build $2 Billion Coal-fired Power Plant in Banten, Indonesia Next Year
 BHEL wins $822.9 Million Contract to build thermal power plant in Tamil Nadu, India

The 41F Utility E-Alert is issued weekly and covers the coal-fired projects, regulations and other information important to the suppliers. It is $950/yr. but is included in the $3020 42EI Utility Tracking System which has data on every plant and project plus networking directories and many other features.

McIlvaine Hot Topic Hours (HTH) and Recordings
Explanation Applicable Services Schedule & Registration Sponsored Webinars
McIlvaine conducts periodic webinars which are in a discussion format and are free of charge to all participants. The displayed material and recordings are free to purchasers of the products and services and by subscription to others.
Format: 50-90 minute recorded discussion using McIlvaine display material. The session will be free of charge to all participants but registration is required.
Approach: There are two types of webinars. One is focused on Markets and directed to suppliers. The other is focused on aiding purchasers make the best Decisions relative to purchases of flow control and treatment equipment and services.
Markets HTH
The general overviews of the market including size and major variables will be discussed with heavy emphasis on technology and regulatory drivers. The presentation will be based on the latest information appearing in McIlvaine multi-client reports. Questions and views from both subscribers and non-subscribers are encouraged.
Decisions HTH
McIlvaine has been publishing information systems on pollution control since 1974. Each subject is organized by the pollutant control technology e.g. fabric filter, scrubber, etc. There are search capabilities to retrieve information on any application. The newest addition has been slide deck systems displaying the issues and options relative to a specific applications. Coal-fired power, cement, steel and waste combustion decision slide decks are continually updated.
The continually updated slide decks are displayed on the applicable decision system. It is recommended that participants view the slide deck in advance of the session and be prepared with questions and views.
Value to purchasers and specifiers: Your questions and interests will be prioritized in the discussion. You will get a monthly newsletter and have continuing access to the system and multiple ways to interface in the future along with a networking directory of suppliers.
Value to Suppliers: You have the opportunity to provide data to be considered at no charge. If you are also a subscriber you will see the summaries in advance and be able to shed light on issues and options not properly covered in the slide deck. If you are a subscriber you will receive the monthly newsletter and continuing yearly access to the system including networking directories.
44I Power Plant Air Quality Decisions includes 1ABC, 3ABC, 4ABC, 9ABC decision services but not 2ABC. So those with multiple technologies and at least partial focus on power will find this combination most cost effective.
Applicable Services for Hot Topic Hours**

Pollutant
Industry Fabric Filter
(1ABC) Scrubber
(2ABC) Precipitator
(4ABC) FGD & DeNOx
(3ABC) Air Pollution
Monitoring
(9ABC) Gas
Turbine
Decisions
Mercury
February
11, 2016 Coal X X
WTE X X X
Sewage X X X
Cement X X
Natural Gas*
DeNOx
March 24, 2016 Coal X X
Incineration X X
Steel X X
Cement X X
Diesel*
Gas Turbine X X
Hot Gas
Filtration Coal X X X X
WTE X X X X
Cement X X X X
Steel X X X X
Incineration X X X X
Coal Gas X X X
GT Intake X
FGD and Acid Gas
June 16, 2016 Coal X X
Sewage X X
WTE X X
Cement X X
Steel X X
*Included in custom system
** Many of the decision guides also are displayed in the relevant market reports. Power Plant Air Quality Decisions includes 1ABC, 3ABC, 4ABC, 9ABC
HOT TOPIC HOUR (HTH) SCHEDULE
Dates for the next 6 meetings are firm; the others will be held in sequence at approximately two week intervals. Unforeseen developments could dictate the insertion of new subjects.
DATE SUBJECT
March 10, 2016
Markets Gas Turbine - Intake filter, SCR, NH3, HRSG, valve, pump, instrumentation and cooling options (dry vs. wet); treatment chemicals; challenges with FAC due to extensive cycling. Click Here to Register
March 24, 2016
Decisions NOx Control - Review of the issues and options for NOx control in coal fired power, cement, steel, and waste to energy plants as well as mobile diesel vehicles. Click Here to Register
April 7, 2016
Markets Power Generation Technologies - Future of USC coal in India, Vietnam and Indonesia; natural gas prices; GHG regulations; nuclear costs; penetration for wind and solar. Click Here to Register
April 21, 2016
Decisions Hot Gas Filtration - Issue and Option for particulate capture. in coal fired power, cement, steel, and waste incineration. Click Here to Register
June 16, 2016
Decisions FGD and Acid Gas Separation - Issue and options for SO2 and other acid gas separation from coal fired power, cement, steel, and waste incineration plants. Click Here to Register
TBA
Markets Desalination - Thermal vs. Membrane; energy recovery, pump, valve, compressor and chemicals options; power/desalination combinations.
TBA
Markets Oil, Gas, Refining - Supply and demand; impact on flow control and treatment products; regional impacts e.g. subsea in North Atlantic vs. shale in the US vs. Oil Sands in Canada.
TBA
Markets Food - Analysis of 12 separate applications within food and beverage with analysis of valve, pump, compressor, filter, analyzer and chemical options; impact of new technologies such as forward osmosis.
TBA
Markets Municipal Wastewater - Quality of pumps, valves, filters, and analyzers in Chinese and Asian plants; new pollutant challenges; water purification for reuse.
TBA
Markets Mobile Emissions - Reduction in CO, VOCs, and particulate in fuels, oils, and air used in on and off road vehicles; impact of RDE and failure of NOx traps and the crisis in Europe created by the focus on diesels.
Click here to Register for the Webinars
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Hot Topic Hour Recordings
See and hear recordings of past Hot Topic Hours (Free for subscribers, $95.00 for non-subscribers)
• Chronological
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Free Sponsored Webinars
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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