Gas Turbine Opportunities for Valve Companies Shaped by IIoT
There are many new gas turbine combined cycle power plants (GTCC) under construction and in operation. This represents a market potential of $3.5 billion/yr. for valve suppliers. However, the Industrial Internet of Things (IIoT) is creating a metamorphosis in the route to market and profitability. This market is being continually assessed in N028 Industrial Valves: World Market. Each gas turbine project is tracked in 59EI Gas Turbine and Reciprocating Engine Supplier Program.
Smart valves provide a route to increase revenue and profitability. Both on/off and control valves have “smart” capabilities. An on/off valve can be supplied with a controller which is intelligent, having digital communication and a microprocessor capable of on-board diagnostics. The controller can detect deteriorating valve performance. Diagnostics also include high and low temperature monitoring. The on/off valve diagnostics make it possible to more accurately predict the need for maintenance based on how hard the valve is working and how it is performing.
Control valves are critical components in plant automation. Their intelligence can be leveraged to maximize plant improvements. Emerson is incorporating smart valve technology to provide a control Valve Condition Monitoring diagnostic service performed by certified Fisher valve and instrument product experts focused on providing predictive analysis of a facility’s control valves. Its purpose is to identify potential failures and avoid them before they cause unsafe operating conditions and/or unplanned downtime.
Emerson has partnered with software company, Seeq, to improve the data visualization tools used to predict future valve problems. Seeq expertise has helped Fisher Valve Division build a collaborative environment connecting customers with local Fisher service experts and global valve experts. This environment enables data from multiple sources to be visualized and aggregated. It allows authorized people located around the world to look and work on the same data for predictive maintenance and operational improvements.
This initiative is part of the IIoT metamorphosis. Most valve manufacturers do not have the infrastructure to be IIoT leaders. So, they need to identify and work with all the relevant participants.



End Users
Large end users are creating fleetwide monitoring systems. Southern Company operates over 280 power generation units at 73 power plants including gas turbine, combined cycle, steam (coal), hydro and solar. Southern Company implemented the first phase of their fleetwide monitoring and diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s efforts promise to result in maintenance savings and availability improvements, while increasing equipment health visibility and optimizing logistics of maintenance.
The one hundred largest operators of gas turbines around the world account for the majority of valve purchases. Therefore, working with them should be a high priority.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the health of rotating parts such as turbines. However, this is being expanded. MHPS just opened a remote monitoring center in the Philippines. It is monitoring the balance of plant in addition to the turbines.
Process Providers
Suppliers of heat recovery steam generators, ultrapure water, emission controls and water treatment are also purchasers or influencers relative to valves. Nalco has a water quality remote monitoring center which operates around the clock.

Automation Suppliers
ABB can provide all required gas turbine control and protection functions utilizing the very same ABB DCS platform that controls the rest of the plant. The typical gas turbine functions implemented include fuel control, startup sequence, speed-load-temperature closed loop control, overspeed protection, anti-surge protection, generator protection, auxiliary control, condition monitoring, auto-synchronization, excitation, frequency control, etc.
Yokogawa has various programs including one which monitors the wastewater from the plant. The automation supplier can be working directly with the end user and not necessarily through the process supplier.
Subject Matter Experts
When problems arise which cannot be handled by the dedicated supplier personnel, it is necessary to turn to subject matter experts. A valve problem for one supplier can turn into an opportunity for another as a result of the recommendations of a subject matter expert. McIlvaine is encouraging individuals to focus on niches and become experts on very narrow subjects.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background data which can be opportunistically displayed to help solve valve problems as they occur.
The gathering and organization of this data for use in the software system is a major challenge. McIlvaine is providing this data in its valve related services but also in systems structured for a single utility. The beta site is for Berkshire Hathaway Energy (BHE) which operates hundreds of gas turbine and other power plants.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by third parties. The developments in remote monitoring are making it more attractive to sub contract to a company specializing in O&M. These providers include specialized service companies such as Wood Group and EthosEnergy, power plant operators such as Uniper and RWE who are leveraging their experience to help others and the plant suppliers such as Siemens and GE who have build/own/operate (BOO) contracts.
Valve manufacturers have an opportunity in an expanding gas turbine market to take advantage of the IIoT driven changes and to increase not only revenues but gross margins and profits as a percent of those revenues. This will require direct high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine Supplier Program
For more information, click on N028 Industrial Valves: World Market
IIoT is Creating New Market Paths to the $400 Million Gas Turbine and Reciprocating Engine Liquid Cartridge Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way liquid cartridges for gas turbine combined cycle systems and reciprocating engines are purchased. The impact of IIoT is being continually assessed in 59EI Gas Turbine and Reciprocating Engine Supplier Program. The markets for cartridges for these plants are analyzed in N024 Cartridge Filters: World Market.
The inventory of existing gas turbine plants is growing at six percent per year and in the next few years the base will grow to two million MW. There are 30,000 individual units. There are hundreds of thousands of stationary engines using gas or oil for fuel. These units routinely require service, replacement of cartridges used for fuel oil, hydraulic fluids, coolants and lubrication. Additional cartridges are used in water intakes, cooling and condensate for heat recovery steam generators. Some cartridges are also used in wastewater treatment. This includes direct filtration of wastewater but also filtration of chemical solutions used in the wastewater treatment processes. The market for replacement filters and services is $400 million per year and will grow by more than six percent per year.
IIoT provides remote delivery of comprehensive information about the operation and health of cartridges. This data can be analyzed to identify problems and will create opportunities for the sale of better filters, media, coatings and smarter filters to replace the existing ones. IIoT is creating new channels to market in contrast to the sale of products directly to a single end user.


End Users
Large end users are creating fleetwide purchasing and monitoring systems. Southern Company operates over 280 power generation units at 73 power plants including gas turbine, combined cycle, steam (coal), hydro and solar. Southern Company implemented the first phase of their fleetwide monitoring and diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s efforts promise to result in maintenance savings and availability improvements, while increasing equipment health visibility and optimizing logistics of maintenance.
The one hundred largest operators of gas turbines around the world account for the majority of purchases. Therefore, working with them should be a high priority. Each of these plants is identified in Gas Turbine and Reciprocating Engine Supplier Program.
Filter manufacturers have the opportunity to offer programs to service and replace all the filters in the fleet. With IIoT cost effective maintenance can reduce costs for the end user while increasing margins for the supplier. There are many thousands of filters in a large fleet. The cost of purchase and storing small filters is much higher for an individual user than it is for a company supplying all filters. Some of the toughest applications for filters are in remote areas or on floating platforms in oceans. Remote monitoring and central supply is particularly advantageous for these applications.
Gas Turbine and Engine Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the health of rotating parts such as turbines. However, this is being expanded. MHPS just opened a remote monitoring center in the Philippines. It is monitoring the balance of plant in addition to the turbines. A filter supplier offering remote filter monitoring for all units can team with a turbine plant supplier for joint analysis of the operating data.
Process Providers
Suppliers of lubrication systems or plant compressed air are also purchasers or influencers relative to products. A plant air compressor supplier can share remote data with the filter supplier. Since lubrication fluid quality, temperature and dirt on the filter are all parameters in determining pressure drop there is need for joint application of expertise.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions utilizing the very same ABB DCS platform that controls the rest of the plant. The typical gas turbine functions implemented include fuel control, startup sequence, speed-load-temperature closed loop control, overspeed protection, anti-surge protection, generator protection, auxiliary control, condition monitoring, auto-synchronization, excitation, frequency control, etc. Parameters such as the pressure drop across the filter are important. Both the filter supplier and the automation supplier can share relevant data.
Subject Matter Experts
When problems arise, which cannot be handled by the dedicated supplier personnel, it is necessary to turn to subject matter experts. A filter problem for one supplier can turn into an opportunity for another because of the recommendations of a subject matter expert. Suppliers need to encourage the participation of subject matter experts who understand the product and can provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background data which can be opportunistically displayed to help solve problems as they occur.
The gathering and organization of this data for use in the software system is a major challenge. McIlvaine is providing this data in its cartridge and gas turbine related services but also in systems structured for a single utility. The beta site is for Berkshire Hathaway Energy (BHE) which operates hundreds of gas turbine and other power plants. It also operates 71 compressor stations. So, it purchases many thousands of cartridge filters per year. The system has information such as the performance of Cuno string wound filters in one condensate system and the performance of Pall filters in another where the string wound filters were replaced with more efficient ones. This human generated data can be utilized with the machine generated data to determine where more efficient and expensive filters should be installed.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by third parties. The developments in remote monitoring are making it more attractive to sub contract to a company specializing in O&M. These providers include specialized service companies such as Wood Group and EthosEnergy, power plant operators such as Uniper and RWE who are leveraging their experience to help others, and the plant suppliers such as Siemens and GE who have build/own/operate (BOO) contracts.
Cartridge filter suppliers have an opportunity in an expanding gas turbine market to take advantage of the IIoT driven changes and to increase not only revenues but gross margins and profits as a percent of those revenues. This will require direct high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine Supplier Program. For more information, click on N024 Cartridge Filters: World Market
IIoT is Creating New Market Paths to the $1 Billion Gas Turbine Plant Pump Repair, Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way pumps for gas turbines are purchased. The impact of IIoT is being continually assessed in 59EI Gas Turbine and Reciprocating Engine Supplier Program. The markets for pumps for these plants is analyzed in N019 Pumps World Market.
The inventory of existing gas turbine plants is growing at six percent per year and in the next few years the base will grow to two million MW. There are 30,000 individual units which routinely require service, replacement or repair of pumps used for intake water, boiler feedwater, condensate, cooling, turbine inlet water injection, reagent delivery, treatment chemical delivery, lubricant and hydraulic fluid circulation. The market for pump replacement products, repair and services is $1 billion per year and will grow by more than six percent per year.
IIoT provides remote delivery of comprehensive information about the operation and health of pumps. This data can be analyzed to identify problems and will create opportunities for the sale of better pumps, pump materials and smarter pumps to replace the existing ones. IIoT is creating new channels to market in contrast to the sale of products directly to a single end user.




End Users
Large end users are creating fleetwide purchasing and monitoring systems. Southern Company operates over 280 power generation units at 73 power plants including gas turbine, combined cycle, steam (coal), hydro and solar. Southern Company implemented the first phase of their fleetwide monitoring and diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s efforts promise to result in maintenance savings and availability improvements, while increasing equipment health visibility and optimizing logistics of maintenance.
The one hundred largest operators of gas turbines around the world account for the majority of purchases. Therefore, working with them should be a high priority. Each of these plants is identified in Gas Turbine and Reciprocating Engine Supplier Program.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the health of rotating parts such as turbines. However, this is being expanded. MHPS just opened a remote monitoring center in the Philippines. It is monitoring the balance of plant in addition to the turbines.
Process Providers
Suppliers of heat recovery steam generators, ultrapure water, emission controls and water treatment are also purchasers or influencers relative to products. Nalco has a water quality remote monitoring center which operates around the clock.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions utilizing the very same ABB DCS platform that controls the rest of the plant. The typical gas turbine functions implemented include fuel control, startup sequence, speed-load-temperature closed loop control, overspeed protection, anti-surge protection, generator protection, auxiliary control, condition monitoring, auto-synchronization, excitation, frequency control, etc.
Yokogawa has various programs including one which monitors the wastewater from the plant. The automation supplier can be working directly with the end user and not necessarily through the process supplier.
Subject Matter Experts
When problems arise, which cannot be handled by the dedicated supplier personnel, it is necessary to turn to subject matter experts. A pump problem for one supplier can turn into an opportunity for another as a result of the recommendations of a subject matter expert. Pump suppliers need to encourage the participation of subject matter experts who understand the product and can provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background data which can be opportunistically displayed to help solve problems as they occur.
The gathering and organization of this data for use in the software system is a major challenge. McIlvaine is providing this data in its pump and gas turbine related services but also in systems structured for a single utility. The beta site is for Berkshire Hathaway Energy (BHE) which operates hundreds of gas turbine and other power plants.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by third parties. The developments in remote monitoring are making it more attractive to sub contract to a company specializing in O&M. These providers include specialized service companies such as Wood Group and EthosEnergy, power plant operators such as Uniper and RWE who are leveraging their experience to help others, and the plant suppliers such as Siemens and GE who have build/own/operate (BOO) contracts.
Pump suppliers have an opportunity in an expanding gas turbine market to take advantage of the IIoT driven changes and to increase not only revenues but gross margins and profits as a percent of those revenues. This will require direct high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine Supplier Program. For more information, click on N019 Pumps World Market.
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
#1304 – January 6, 2017
Table of Contents
COAL – US
• Ash Pond leaks this Week at Duke Energy Rogers Coal-fired Power Plant
• Coal-fired Power Plants will continue to close despite change at EPA
• Coal-fired Power Plant's Owners weigh Options that include closure
• Washington State has blocked Plans for the Nation’s biggest Coal Export Terminal
• Ameren will install New Ambient SO2 Monitors
• EPA analysis shows Wet FGD is most Cost-effective Route to meet Federal Implementation Plan


COAL – WORLD
• China fines 605 Power Plants 328 Million Yuan for Environmental breaches
• BHEL commissions Second 600 MW Thermal Unit in Telangana
• Delay in approval of Meralco Projects to hike construction and Operational Costs
• GE Power India Ltd awarded Contract worth Rs. 271.1 Crores
• Aboitiz Power cleared to acquire Stakes in in GNPower Thermal Power Plants
• French Bank backs out of financing Indonesian Coal-fired Power Plant
• Swahili Settlement in Lamu, East Africa protesting against Kenyan Government’s plans for a Coal-fired Power Plant
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.
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Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com