August 2016 - RO, UF, MF Insights 69

Improving the Right-to-Win Ability for High Performance Flow Control and Treatment Products

The right-to-win for high performance flow control and treatment products can be enhanced by leveling the playing field and changing the scoring method. Right-to-win is the ability to engage in any competitive market with a better-than-even chance of success. Four strategies have been used to improve the right-to-win ability. They are position, execution, adaptation and concentration.

In flow control and treatment there are two types of products and services: high performance and general performance. The right-to-win strategies for them differ significantly.

The challenge of large U.S. and European based suppliers of high performance flow control and treatment products is to not only improve the right-to-win ability in the existing market, but to be pro-active in changing the rules of the game to level the playing field and even the scoring method in developing countries. Most of these large companies have not achieved the sales and profits in the fast growing developing market. McIlvaine, therefore, proposes that “creation” be considered a fifth right-to-win strategy. The importance of each strategy has been ranked from very important to irrelevant.

Right-to-Win Strategies for High Performance and General Performance Products (5 is very important and 1 is irrelevant)
Right-to-Win Strategy	High Performance	General Performance
Position	3	5
Execution	3	5
Adaptation	5	3
Concentration	3	4
Creation	5	2

The creation strategy changes the playing field by making it easier for purchasers to buy the best rather than the lowest cost product. This entails finding an easier way to determine the lowest total cost of ownership (LTCO). Arcelor Mittal is doing this by global sourcing and then providing LTCO analyses for its 200 plants around the world. McIlvaine is accomplishing this in certain industries with free Decision Guides for end users.

Changing the scoring method is another game changer. Most flow control and treatment products contribute to increased life quality today at some penalty to future generations (e.g. greenhouse gases or resource depletion). The perspective is quite different for a wealthy individual who wants to set up annuities for his grandchildren and the starving parent who cannot even ensure the survival of his children. McIlvaine has created a metric to help developing countries make the best choice for their citizens.

For more information on right-to-win strategies in flow control and treatment contact Bob McIlvaine 847-784-0012 ext. 112 rmcilvaine@mcilvainecompany.com.

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.

Old coal-fired power plants in Europe and the U.S. must invest in technology to meet new emission standards, but must do so with a modest investment. New coal-fired power plants being built in Asia and certain other countries are tasked with obtaining high conversion efficiencies which are achieved with operation at high temperatures and pressures. The result is that coal-fired power plants, whether they are new or old, have difficult decisions to make. 44I Power Plant Air Quality Decisions (PPAQD) which includes information on all coal-fired power plant products and services provides power plants and their suppliers with Decision Guides to include the latest developments presented in a format so that the benefits of each option are compared.

PPAQD provides a powerful new tool both for the plant operators and suppliers. For example, in the last three weeks there has been a specific analysis of NOx control options for a utility which is facing a $700 million investment to comply with regional haze rules. The major options are to install SCR or to initiate a series of projects which in combination will achieve the needed NOx reduction. The combination options include:

These options have been reviewed in webinars with a large number of utility people in attendance to hear presentations by GE, Siemens, Emerson, Fuel Tech, FLS, AECOM and others.

7,000 Utility Coal-fired Power Plants are Continuing to Upgrade and Replace Controls and Equipment

The market to upgrade and replace components in the existing 7,000 coal-fired power plants is larger than the new equipment market for wind, solar, or gas turbines. The upgrades and replacements are tracked in the Utility Tracking System published by the McIlvaine Company.

Many of the power plants in the U.S. are more than 40 years old but are expected to operate another 20 years. Optimization systems can improve efficiency, reduce greenhouse gases and save fuel. The payback is often measured in months and not years or decades. So, even if the expected remaining life is 10 years or less, investment is warranted.

In many instances, the remaining life is determined by the upgrade investment costs. McIlvaine has been conducting three webinars for a large utility to determine whether optimization systems can reduce NO_x sufficiently to meet new regional haze requirements. The alternative is expensive selective catalytic reduction (SCR) systems. Siemens, GE and Emerson have made presentations showing how substantial NO_x reductions can be maintained by combining predictive models, advanced instrumentation and results based tuning.

The Utility Tracking System also tracks upgrades of utility water systems. Power plants in the U.S. must make adjustments to limit harm to aquatic life at water intakes. These same power plants must also now meet new wastewater emission standards. Many power plants around the world are opting for zero liquid discharge (ZLD) systems. This requires major investments in evaporators, crystallizers, membrane separators and mechanical vapor recompression.

The drought in India and water shortages in many countries are resulting in the use of treated municipal wastewater. Most power plants are within 70 miles of a municipal wastewater plant. The treatment costs to make this water usable by the utility are modest. So, if water is valued, the investment can be justified.

The average power plant is only 40 percent efficient. The steam plume visible from the stack and cooling tower are testimony to the large quantity of wasted heat. Sorbent injection and air preheater extension investment can be justified with payback within a year or two.

Air pollution regulations are not static. There is a new round of regulations at least once a decade. New pollutants such as mercury now have to be reduced as well as the traditional acid gases and particulate. The Utility Tracking System tracks all the upgrades in a database with details on each plant. A weekly 10 to 20-page alert covers new developments. For more information, click on 42EI Utility Tracking System.