Subject: Are costs of SCR and FGD higher?

McIlvaine is continuing to track FGD and SCR projects.  The costs for SCR are running considerably higher than predictions.  Part of this is because power plants are lumping quite a few peripheral items into the total investment.  Nevertheless, the cost of tearing out ducts and squeezing a new piece of equipment into constrained areas is substantial.

McIlvaine is tracking these projects and reporting weekly on the developments in the Utility Environmental Upgrade Tracking System http://www.mcilvainecompany.com/energy.html .

McIlvaine is also tracking developments on NSR litigation and the impact of CAIR.  All the individual projects are listed in the tracking system.  The impact of supplier revenues is analyzed in two reports.  One is FGD: World Markets http://www.mcilvainecompany.com/air.html#NO27 and the other is NOx Control: World Markets http://www.mcilvainecompany.com/air.html#N035 .

FGD activity in Asia and Europe is on the rise, so a very big world market is being created.  More money will be spent for consumables and repair parts associated with FGD systems than will be spent for either NOx control or particulate removal.   The after market will be an important revenue producer for someone.  There is some question as to whether the FGD suppliers will take advantage of this opportunity.

All the McIlvaine services are on display at www.mcilvainecompany.com .

Bob McIlvaine

847-784-0012