Thousands of North American Water Treatment Projects are for Replacement Rather than Growth
Thousands of projects to purify drinking water for municipalities are in planning and construction. Most of these projects are to replace plants as old as one hundred years. The number of projects generated by demand growth is comparatively small. Changing environmental and regulatory requirements are a third driver. All these projects are tracked in North American Public Water Plants and People published by the McIlvaine Company. (www.mcilvainecompany.com)
A prime example of replacement of ancient systems is in Sacramento, California where $240 million has been appropriated to rehabilitate the city’s two major water treatment plants. Most of the renovation will occur at the 90-year-old Sacramento River Water Treatment Plant, but work also will be done on the Fairbairn Water Treatment Plant on the American River in east Sacramento.
The Sacramento River Treatment Plant was built in the 1920s and, officials say, has outlasted its useful life. It can treat 135 MGD, but utility officials said they want to increase that capacity to 160 MGD to meet future demands.
Ithaca, New York is finally moving ahead to rebuild a 110 year old plant. The city began evaluating its options for water service in 1996. In 2005, the rebuilding of the city’s system or purchasing water from Bolton Point were identified as the two alternatives for evaluation by the city, and in 2009, Common Council approved the rebuild option. Site plan review for the $37 million project was completed last year. The project will put the city in a good position for the next one hundred years. The plant will use advanced technology as the first large plant in the area to use membranes for water filtration, a technology that is becoming more mainstream.
The Southern Delivery System (SDS) will break ground this year for a $125 million facility to treat the raw water that will be pumped from the Pueblo Reservoir to Colorado Springs.
The SDS water treatment plant, which is being built near Pikes Peak, will be able to clean 50 MGD of water. Discussion of a regional water delivery system began more than a decade ago to address the water needs of a growing population in the Pikes Peak region. The project is estimated to cost $1 billion, but could come in under budget because of favorable financing conditions.
SDS is expected to be operational in early 2016, and it could take nearly that long to complete the water treatment plant.
Recently, representatives from HDR, Inc. outlined for the Yankton City, S.D. Commission approximately $28.7 million in upgrades it believes are necessary for the community’s water treatment system.
The improvements include:
• decommissioning Water Treatment Plant No. 1 as a treatment facility due to its 74 years of service,

• making improvements to aging equipment in Water Treatment Plant No. 2, which was built in Riverside Park in 1972,

• adding a new treatment plant adjacent to Treatment Plant No. 2 that would have the capacity to treat 5 MGD and would become the primary treatment facility, and

• adding a new water source, likely a collector well at Paddle Wheel Point that could deliver at least 5.8 MGD.

For more information on North American Public Water Plants and People, click on: http://home.mcilvainecompany.com/index.php/component/content/article?id=71#n67ei

Desalination Cross-flow Membrane Revenues will rise 50 Percent by 2017
In the next four years, sales of cross-flow membranes and equipment to desalinate seawater will rise by 50 percent to $4.3 billion/yr. This is the conclusion reached by the McIlvaine Company in its RO, UF, MF World Markets. (www.mcilvainecompany.com)
($ Millions)
Industry 2017
Total 12,651
Chemical 490
Desalination 4,330
Food 300
Metals 389
Mining 141
Oil & Gas 143
Other Industries 842
Pharmaceutical 1,020
Power 780
Pulp & Paper 278
Refining 133
Residential/Commercial 773
Semiconductor 283
Wastewater 370
Water 2,379
Desalination will account for 34 percent of total cross-flow sales of $12.6 billion. This includes the replacement membranes and modules as well as the new equipment using microfiltration, ultrafiltration and reverse osmosis. The salt is removed in the reverse osmosis system but either microfiltration or ultrafiltration are used to pre-filter the seawater.
The U.S. market is poised to accelerate as cities want a more secure water supply. San Diego has purchased a system from IDE which will be the largest in North America. It will process more than 100 million gpd of seawater and produce more than 50 million gpd of drinking water. Desalination became attractive to San Diego based on reduced operating cost.
Early desalination membranes removed about 98.4 percent of the salt and required an extra pass through a second array of filters. According to IDE, they cost about $500 each and lasted three years. Today’s filters extract 99.8 percent of salt, cost $350 and can last seven to eight years, making large-scale desalination feasible. Power-saving devices employ leftover brine to spin turbines which in turn run pumps, cutting energy use by 45 percent.
There are potentially other technologies in the wings which reduce desalination costs. Lockheed Martin has developed a special material that may not need as much energy for filtration as the present polymeric membranes.
Graphene is a substance made of pure carbon. Carbon atoms are arranged in a regular hexagonal or honeycomb pattern in a one-atom thick sheet. Graphene researchers won the Nobel Prize in Physics in 2010 for developing the wonder-material.
Lockheed anticipates that their Perforene filters will be able to provide clean drinking water "at a fraction of the cost of industry-standard reverse osmosis systems." Perforene is one thousand times stronger than steel, but still has a permeability that is about one hundred times greater than the best competitive membrane out in the market according to Lockheed. The company is targeting to have a prototype to test in a reverse osmosis plant by 2014 or 2015.
For more information on RO, UF, MF World Market, click on: http://home.mcilvainecompany.com/index.php/component/content/article?id=71#n020.

The Big Get Bigger in the $38 Billion Global Pump Industry
The top 200 companies enjoy more than 50 percent of the global industrial pump business. Another 5,000 companies average less than $4 million in sales each. According to the McIlvaine Company in Pumps: World Markets the concentration of the industry has again accelerated. There have been a number of recent acquisitions and geographic expansions.
GE, the nineteenth largest pump company, will move several rungs up the ladder as it acquires Lufkin Industries, Inc., a leading provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears, for approximately $3.3 billion. Artificial lift, used in 94 percent of the roughly one million oil-producing wells around the world, helps lift hydrocarbons to the surface in reservoirs with low pressure and improves the efficiency of naturally flowing wells. Lufkin will broaden GE oil and gas artificial lift capabilities beyond electric submersible pumps (ESPs) to include rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and a sophisticated array of well automation and production optimization controls and software. The ESP category of artificial lift is the only lift segment in which Lufkin does not currently compete.
The world’s fifth largest pump company, Weir, has acquired the R Wales group of companies (“R Wales”), a Canadian based manufacturer of specialist rubber and wear resistant linings for the mining, minerals processing and oil sands industries. The acquisition, which was completed on February 15, 2013, with Canadian facilities in British Columbia and Ontario and a U.S. facility in Arizona, R Wales designs and manufactures rubber lining for pipes, tanks, chutes and hoses and specializes in custom rubber and urethane moulded products, including slurry pump wear parts and mill liners. In 2012, the Wales Group generated revenues in excess of C$30m. The acquisition extends Weir’s aftermarket position in the production and servicing of a wide range of rubber lined wear components for the North American oil sands and mining sectors and complements the existing customer base and product portfolio.
Weir has also advanced its global foundry supply chain strategy, completing the acquisition of the business and assets of the Cheong Foundry in Malaysia on February 6, 2013. Based near Kuala Lumpur, the facility supplies castings to a number of industries, including mining and power. The acquisition enables Weir to add foundry capacity to serve the Asia-Pacific region with high quality products from a best cost sourcing region. In addition, agreement has been reached to acquire the plant, equipment and buildings of Xmeco Foundry Pty. Ltd, a specialist large casting foundry in Port Elizabeth, South Africa. Xmeco expands Weir’s capacity and capability on the African continent, enabling the full product range to be locally produced.
The third largest pump company, Grundfos, will expand its Indian production capacity by setting up an additional unit. As part of the expansion plans, with an initiative of making India as the second home, the company plans to invest Rs. 230 crores in the next five years. Grundfos India has been growing at 30-35 percent since its inception in 1998. With the turnover of Rs. 318 crores in 2012, Grundfos is looking at Rs. 1000 crores turnover in the next five years.
Number twenty-two in the rankings, Pentair, is planning to invest $50 million in expanding its operations in the UAE. Pentair wants to increase its $400 million current turnover in the UAE to $1 billion. In particular, the company is looking to invest in a new pump manufacturing facility in the region.
Number twenty-eight in world ranking, Gorman-Rupp Africa, has purchased the business of Pumptron with cash generated from operations. Pumptron has been an international value-added distributor for Gorman-Rupp for over twenty-five years and will further enhance the company’s continuing international expansion. Founded in 1986, Pumptron is a provider of water-related pumping solutions primarily serving the construction, mining, agricultural and municipal markets in South Africa and, increasingly, throughout other sub-Sahara African countries. Pumptron is headquartered in Johannesburg with operating locations in Cape Town and Durban and had approximately $10 million in revenue during its fiscal year 2012, which includes sales of Gorman-Rupp products.
The Gorman-Rupp subsidiary, National Pump Company, purchased American Turbine Pump Companies (“ATP”). Founded in 1975, ATP is a group of companies that collectively are a leading manufacturer and distributor of energy-efficient vertical turbine and submersible pumps primarily serving agricultural, municipal and industrial markets both domestically and globally. During 2011, ATP had approximately $15 million in revenue from sales of its products through its Lubbock, Texas headquarters and two other locations in Houston, Texas and Fresno, California.
ITT Corporation has dropped from the top of the leader board when it divested its Xylem companies. But it is growing again. It has signed an agreement to acquire Joh. Heinr Bornemann GmbH. Bornemann Pumps is a global provider of highly engineered pumps and systems for the oil and gas industry. Headquartered in Germany, Bornemann Pumps has a strong international installed base of multiphase pumping systems for the oil and gas market. The company also serves the industrial, food and pharmaceutical sectors. Founded in 1853, Bornemann has a solid record of growth with estimated fiscal 2012 revenue of €115 million and employs more than 550 employees globally.
Taco, Inc., of Cranston, RI, has purchased Hydroflo Pumps of Fairview, Tenn. Taco recently dedicated a $20-million addition to its headquarters in Cranston. The company, which has sales of $200 million a year, employs about 500 people, the vast majority at the facility in Cranston, with other workers in Fall River, Mass. and Ontario, Canada. It makes valves, pumps, tanks and electronics for heating and cooling. Hydroflo is a manufacturer of vertical and submersible turbine driven pumps. Hydroflo also operations in Culver, Ind., Marion, Ark., Grand Island, Neb, Brownfield, Texas and Fresno, Calif.
CRI Pumps, a Coimbatore, India-based manufacturer and exporter of pumps, recently signed a business transfer agreement with Pumps & Process Systems of the U.K. Chief Executive Officer of CRI Chaitanya Koranne said that CRI would shift the industrial pumping solutions manufacturing facility of Pumps & Process Systems in the U.K. to Coimbatore soon. CRI Pumps’ annual turnover in 2011-2012 was Rs. 850 crore ($160 million), which was expected to increase to Rs. 1,000 crore this year. Nearly 20 percent of the turnover last year was from exports, and it was expected to go up substantially with the acquisition of the U.K. company. Pumps and Process Systems had a strong presence in sectors such as mining and CRI would be able to tap the opportunities in these areas.
Xylem, the current # l pump supplier has acquired privately held Heartland Pump Rental & Sales, Inc. for approximately $29 million. Heartland Pump, headquartered in Carterville, Illinois, has been a strong business partner with Godwin in dewatering pump rental, services and systems design since 1995. Godwin is part of the Xylem portfolio. Heartland Pump employs approximately one hundred people with branches in Evansville, Indiana; Horn Lake, Mississippi; and Nashville, Tennessee.
The Liebherr Group has acquired concrete pump manufacturer Waitzinger, which is based in Neu-Ulm, Germany. Waitzinger Baumaschinen was founded in 1991 and employs a staff of nearly sixty. It specializes in the development and production of truck-mounted concrete pumps, trailer concrete pumps and truck mixer concrete pumps. These products will now also be distributed via Liebherr's international sales and service organization.
There is likely to be a continuation of globalization and consolidation of the international pump industry in the coming years.
For more information on Pumps World Markets, click on: http://home.mcilvainecompany.com/index.php/component/content/article?id=75

Headlines for the May 24, 2013 – Utility E-Alert
UTILITY E-ALERT
#1126 – May 24, 2013
Table of Contents
COAL – US
 Allegheny Energy Supply to sell Harrison to Mon Power
 NSR Case against Homer City in Appeals Court
 PSO proposes Alternate Regional Haze Plan—Retire One Unit at Northeastern in 2016
COAL – WORLD
 Formosa Heavy to build 600 MW Leyte and 300 MW Davao Power Plants in Philippines
 Hamon to rebuild ESPs and supply ESPs and FGD to New Power Projects
 Chubu could build 600 MW Power Plant in Japan and sell Electricity in TEPCO Area
GAS/OIL – WORLD
 Saudi Aramco invited Bids for 2,400 MW IGCC Power Plant at Refinery in Saudi Arabia
 EDF building Combined Cycle Power Plants in France
 Genrent do Brasil to build 70-MW Iquitos in Brazil
 Siemens to provide Gas Turbines to Saudi Electricity Co
 Wärtsilä to build 110 MW Gas-fired Power Plant in Russia
NUCLEAR
 Visaginas Project in Lithuania not Economically Feasible
 Algeria plans Nuclear Power Plant by 2025
BUSINESS
 G. Edison Holland New Head of Mississippi Power
 MHI completes acquisition of Pratt & Whitney Power Systems
 MET Licensee has Wet FGD Award in China
 Coal regains Some Electric Generation Market Share from Natural Gas
 GE Competing with Ecolab, Flowserve, Xylem and Pentair for Top Spot in Fluid Treatment Market
 Market to Remove Mercury from Air is Complex
HOT TOPIC HOUR
 “Power Plant Cooling Towers and Cooling Water Issues” was the Hot Topic Hour on May 23, 2013
 “Air Pollution Control Market Opportunities” is the Hot Topic for Thursday, May 30, 2013
 Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=72

“Power Generation in Europe” is the Hot Topic for Thursday, June 6, 2013
At 10 a.m. on Thursday, June 6, the Power-Gen Europe show will have ended and, since it will be 5 p.m. in Vienna, most participants will be traveling home. Last year we conducted a webinar from Cologne. This year we will be coordinating activities from our offices. Bob McIlvaine will be reporting and will invite contributions from speakers and exhibitors.
There will only be four presentations on air pollution control at the conference. One will be on SNCR for coal-fired power plants. Another will be on SCR and a third on fluid bed scrubbers. One presentation will cover FGD design for coal-fired boilers. There will be a water treatment paper by Nalco.
There are more than 20 exhibitors with an air pollution focus, so we will be reviewing some of their products. There will be a few water treatment exhibitors. Ovivo, who was a presenter last week in our hot topic hour, will be displaying its water intake products.
Much of the focus will be on the future of coal in Europe. There has been a real turnaround recently as the cost of coal-fired power has proven to be considerably less than gas. A number of the conference papers are devoted to carbon capture. On the other hand, there is little evidence that many commercial power plants will be built in the foreseeable future. So what is the outlook?
To register for the Hot Topic Hour on June 6, 2013 at 10 a.m. (DST), click on: http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.

McIlvaine Hot Topic Hour Registration
On Thursday at 10 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 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
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 Multi-Pollutant Control Technology
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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