605 FGD is a billion membrane market

Subject: FGD is a billion membrane market

At its May 9, 2005 annual meeting, Zenon estimated FGD wastewater treatment as a $10-30 million opportunity for each of the 100 new coal-fired plants under development. Zenon integrates biological selenium and mercury separation technologies with membrane bioreactors.

Zenon only mentioned the new plants. But there is even a bigger market involving retrofitting FGD to existing plants. McIlvaine tracks every retrofit as well as new fossil-fired plant in the Utility Environmental Upgrade Tracking System, http://www.mcilvainecompany.com/energy.html .

There are other membrane applications in the power plants as well. Zenon will supply the Yuhuan Power Plant, located in Zhejiang Province, China with its immersed ultrafiltration water treatment technology. The company’s ZeeWeed^® membranes will pre-treat seawater before it is desalinated with reverse osmosis membranes. The ultrafiltration system will produce 76,800 cubic meters per day (or just over 20 million gallons) of high quality feedwater, which will then be led to a desalination process for the production of 34,560 cubic meters per day of water, once the plant is running. This site will serve as a key reference site for Zenon. “We’re very excited about this project, which is one of the world’s largest installations of its type,” said Andrew Benedek, Zenon Chairman and CEO. "Our ZeeWeed^® technology is the ideal complement to extending the life and improving the performance of reverse osmosis membranes, particularly for seawater desalination." The Yuhuan power plant will house four sets of 1,000 MW coal-fired steam turbine generators, which will be built in two phases. The first phase of construction is scheduled for completion in 2007, while the second is set to be commissioned in 2009.

McIlvaine forecasts the revenues for cross-flow filtration systems and membranes for the power industry as well as each other application in RO/UF/MF World Markets, http://www.mcilvainecompany.com/water.html#NO20 .

This service also includes a monthly news update. Here are the April headlines:

RO/UF/MF Market Update

April 2005

Municipal: U.S.

DWR recommends $25 million in Prop 50 desal grants

California invests in Santa Cruz desalination plan

State Grants Long Beach Water $3 Million

Lee County has 2 membrane projects in the works

Texas Senate water bill encourages desalination

Municipal: Offshore

Work starts on $387 million Perth desalination plant

$300 million desalination plant to meet demands of Olympic Dam