NOx Control Market to Climb to New Peak
Record purchases for gas turbines and coal-fired plants in the U.S. resulted in world sales of selective catalytic reduction (SCR) systems of over $4 billion in 2002. This year sales will be down by 20 percent but will still be the second highest ever. In NOx Control World Markets, McIlvaine Company points out that, a market that was measured in hundreds of millions of dollars prior to 2000, is now measured in billions. The equipment market will not soon reach the 2002 peak again but in the next decade will nevertheless net $25 billion in sales.
The market for catalyst is very bright in that this is a consumable product. The 2002 peak for catalyst sales will be exceeded in coming years as replacement catalyst becomes a big segment of the market. Whereas, the U.S. has been a small market compared to Asia and Europe in the 1980s and 1990s, now the U.S. market is equal to the other regions combined.
Although the gas turbine segment was a big percentage of the market in the last few years, it will be relegated to a minor position due to the continued strength in coal. Not only will there be lots of NOx control for new coal-fired boilers, but additional billions of dollars will be spent on NOx control to reduce emissions for existing plants. This is a result of litigation by EPA. Several major settlements (Dominion and WE Energies) in the last month are indicative of many such settlements to come.
The refinery industry will be another big purchaser of NOx control equipment. There is activity in Europe but it is overshadowed by the impact of litigation in the U.S. EPA has forced settlements with some refineries, and as a result, obtained voluntary agreements with much of the rest of the industry. These settlements stipulate specific NOx control expenditures and specific dates.
In Asia the market is shifting from Japan to some of its neighbors. A big program to fit SCR to coal-fired boilers is underway in Korea. Taiwan is also active. A NOx control program is just getting under way in China. In Europe, NOx control revenues are on the rise due to activity in France, Spain, UK, and a number of Eastern European countries.
There are many beneficiaries of this rising market. Some of the architect/engineering firms such as Black & Veatch, Sargent & Lundy, and Parsons have taken a larger role than the traditional preliminary design and specification and are providing some of the coordinating activities normally furnished by equipment suppliers. Equipment suppliers such as Alstom, Babcock & Wilcox, Babcock Power, Hamon, Foster Wheeler, Lurgi, Wheelabrator, and Peerless have achieved substantial sales from this market. Catalyst manufacturers who have benefited include Cormetech (Mitsubishi), KWH, Siemens, Babcock Hitachi, CRI, Hitachi Zosen, IHI, Engelhard, Johnson Matthey, Sud Chemie, and Nippon Shokubai.
There are a number of suppliers of novel systems that are making a mark. They include BOC, Powerspan, and others. Suppliers of ammonia such as Koch and Terra are enjoying steadily increasing sales.
For more information click on NOx Control World Markets http://www.mcilvainecompany.com/air.html#N035 .
Bob McIlvaine
847-784-0012
http://www.mcilvainecompany.com