Power Plant Valve Market Shifting to Asia

A number of factors are causing major shifts in power plant valve purchases. These changes are being continually evaluated in N028 Industrial Valves: World Market.

The market for valves in the power industry is being shaped by:

·       Increasing need for energy in developing countries

·       Changes in fuel availability and price

·       Regulations which impact the valve expenditures per unit of electricity capacity

·       Changes in the mix of generation technologies

Developing countries are moving ahead with coal-fired power plants.  The U.S. is building a number of gas turbine-fired power plants while Europe is relying on growth in renewable energy. So the result of this activity is a regional shift in valve markets.

Regulations are impacting valve expenditures.  Limits on water discharges are generating markets for zero liquid discharge (ZLD) systems. Concentrated wastewater is processed in evaporators.  Steam is regenerated with compressors, so a number of high performance valves are needed.

Limits on SO₂ emissions are creating large markets for knife gate valves used with lime and gypsum slurry transport.

The long term market outlook is most impacted by the trend toward generation technologies which needed lower investments in valves. Nuclear power plants need a greater valve investment than any alternative.  They require as much ultrapure water for steam generation as do coal-fired power plants. They outstrip alternatives relative to combustion valve requirements due to highly critical control of the nuclear reaction process. Substantial investment in valves is also required for water intakes, cooling water and wastewater treatment.  The fact that nuclear power is being phased out in some countries reduces the valve potential in those countries.

The valve investment per MW has been compared for each power generation technology and for each type of fluid being controlled.  This ranges from lubrication valves where flows are measured in fractions of a liter per hour to large valves in scrubber recycle systems in coal-fired power plants where the individual valve must handle 50,000 gpm and where one system may need eight of these valves.

Selection of valves for water intakes and cooling is essentially the same regardless of the generation type.  However, the nuclear sites need special safety protection. 

Similar valves are used in the steam cycles of coal, nuclear, CCGT and biomass power plants.  The difference is that gas turbine power plants generate only 40 percent of the power with steam.

Depending on the generator selection, the valve expenditure can vary by 400 to 1.  With the trend toward renewables in Europe the power plant valve market in this region will shrink. On the other hand, the Asian predilection for coal will result in good growth in this region over the next decade. For more information on N028 Industrial Valves: World Market, click on:   http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028

Flow Control and Treatment Mining Market Tops $13 Billion in 2017

The mining industry will spend $13 billion for flow control and treatment equipment and services in 2017.  The forecast appearing in N064 Air/Gas/Water/Fluid Treatment and Control: World Market includes the following fluids:  air, water, gas, oil, slurries and other. Movement of gases and air with fans and compressors is a big segment. Three billion dollars will be spent for pumps and valves.

The air and water monitoring expenditures can be further segmented based on how the equipment is used. Online continuous measurement makes up the bulk of the expenditures.

The mining market is characterized by very large projects which are few in number but comprise a significant portion of the market. So the market is volatile.  Presently there are a number of large potash projects in Saskatchewan, Canada which represent a potential sale of flow control and treatment equipment of close to $1 billion or over 7 percent of the entire annual market. A very large copper mining project in Ecuador will significantly impact the total market.

The U.S. represents only 6 percent of the mining potential for the largest segments which include iron ore, coal, bauxite, copper and phosphate. China on the other hand represents 23 percent of the total based on domestic production. When you consider that China is a major investor in the rest of the Americas which will account for 19 percent of the production and Africa with 13 percent of the production, its influence on mining flow control and treatment is considerable.

China and the Americas will account for over 33 percent of the bauxite production in 2017.

China will account for nearly 42 percent of coal production in 2017.

Central and South America will produce 43 percent of the copper in 2017.

Twenty-five percent of the iron ore will be produced in the Americas in 2017.

China and Africa will account for 69 percent of 2017 phosphate production.

For more information on specific mining markets click on:

The Flow Control Future Belongs to International Companies with Holistic and Proactive Development, Supply and Sales Programs

The $350 billion flow control and treatment market is undergoing a steady change caused by:

·       Growth disparity between regions

·       Expansion of international companies in the high growth regions

There have been many acquisitions in recent years as international companies seek to adjust to these changes. However, acquisitions are only part of the adaptation process. Some international companies are very successful in their expansion efforts. Others are not doing as well. The differences can be attributed to six factors.

Product development is much more important in flow control and treatment than in some other industries where the pace of change is slow.  A holistic program takes into account the range of opportunities whereas a myopic program is the victim of an existing culture e.g., IBM and personal computers.  W.L. Gore has developed unique products in retail clothing as well as flow control and treatment where it supplies pump packings, liquid filtration bags, gas turbine filters, dust collector bags, NO_x and VOC removal technologies and most recently a novel device for mercury removal.  The company shows the holistic strength by the breadth of industries and products.  It has demonstrated its proactive strength by unique approaches which take an industry in a different direction.

Companies without strong product development programs complain that the Chinese are stealing their designs.  Thermo Fisher, with a strong development program, has built its main air pollution research center in China.

Supply includes manufacturing, purchasing, engineering and service.  International flow control companies have been investing in manufacturing facilities in Asia.  Filtration media companies have been generally successful in setting up plants in China.  The biggest opportunity lies in a holistic approach which combines manufacturing with service.  Pentair, for example, has worked on a repair business based on expensive valves which can be repaired rather than replaced.  This initiative combines the holistic manufacturing/repair combination plus the proactive concept to take the industry in a new direction.

The potential for remote monitoring, service and then maintenance support can be realized with holistic and proactive approaches.  This potential is highest in developing countries moving to high tech production e.g., pharmaceuticals in India, semiconductors in China and ultrasupercritical coal-fired power plants in Vietnam.

Most international companies are failing to take the proper holistic approach to sales.  Divisions are not sharing intelligence or collaborating.  Management has initiated top down approaches to take advantage of synergies but efforts have often been unsuccessful.  There is considerable potential for multi-company initiatives.  Various governments are helping.  The Italian government has a strong initiative to promote industrial valve exports. The Industrial Valve Summit held last year in Bergamo, Italy was an effective promotional aid to the Italian valve manufacturing industry.

The McIlvaine Company is focused on helping international companies with all six of the important factors for international success.  In addition, McIlvaine is creating unique tools which can be shared by suppliers and end users around the world.  They include:

·       Decision guides with classification of options for each industry.

·       Cross pollination among industries: McIlvaine conducted a cross industry pollination webinar on mercury removal for sewage sludge incinerators, coal-fired boilers, cement plants, waste-to-energy plants and natural gas pipelines.  New developments applied to natural gas pipelines may be applicable to the other industries.  Decision guides on NO_x, hot gas filtration and acid gas removal in multiple industries will be discussed in a series of webinars in March and April.

·       White papers and analyses on products focused on the total cost of ownership.

·       Identification of all supplier and end user parent companies by a corporate identification number with spelling in Chinese and English.

·       Supplier programs including many market reports and databases along with KOC Sales Strategy, 4 Lane Knowledge Bridge, and Detailed Forecasting of Markets, Prospects and Projects.

For more information click on:  N064 Air/Gas/Water/Fluid Treatment and Control: 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

#1260 – February 19, 2016

Table of Contents

COAL – WORLD

·       Egypt earmarks Coal Power for greater Contribution

·       Atimonan power station 1200-MW Coal-fired Power Plant proposed in Quezon Province, the Philippines

·       Expansion proposed for Coal-fired Batangas Power Station at Batangas Bay, the Philippines

·       Thermal Powertech signs PPA with Telangana       

·       BHEL commissions 270 MW Coal-based Power Project in Punjab, India

·       Proposed Sulcis 350 MW Coal-fired Power Plant for Sardinia, Italy including CCS

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.

 McIlvaine Hot Topic Hours (HTH) and Recordings

     Explanation          Applicable Services         Schedule & Registration       Sponsored Webinars 

McIlvaine conducts periodic webinars which are in a discussion format and are free of charge to all participants. The displayed material and recordings are free to purchasers of the products and services and by subscription to others.

Format:  50-90 minute recorded discussion using McIlvaine display material. The session will be free of charge to all participants but registration is required.

Approach: There are two types of webinars. One is focused on Markets and directed to suppliers. The other is focused on aiding purchasers make the best Decisions relative to purchases of flow control and treatment equipment and services.

Markets HTH
The general overviews of the market including size and major variables will be discussed with heavy emphasis on technology and regulatory drivers.  The presentation will be based on the latest information appearing in McIlvaine multi-client reports. Questions and views from both subscribers and non-subscribers are encouraged.

Decisions HTH
McIlvaine has been publishing information systems on pollution control since 1974.  Each subject is organized by the pollutant control technology e.g. fabric filter, scrubber, etc. There are search capabilities to retrieve information on any application.  The newest addition has been slide deck systems displaying the issues and options relative to a specific applications.  Coal-fired power, cement, steel and waste combustion decision slide decks are continually updated.

The continually updated slide decks are displayed on the applicable decision system.  It is recommended that participants view the slide deck in advance of the session and be prepared with questions and views.

Value to purchasers and specifiers:  Your questions and interests will be prioritized in the discussion. You will get a monthly newsletter and have continuing access to the system and multiple ways to interface in the future along with a networking directory of suppliers.

Value to Suppliers:  You have the opportunity to provide data to be considered at no charge. If you are also a subscriber you will see the summaries in advance and be able to shed light on issues and options not properly covered in the slide deck.  If you are a subscriber you will receive the monthly newsletter and continuing yearly access to the system including networking directories.

44I Power Plant Air Quality Decisions  includes 1ABC, 3ABC, 4ABC, 9ABC decision services but not 2ABC. So those with multiple technologies and at least partial focus on power will find this combination most cost effective.

HOT TOPIC HOUR (HTH) SCHEDULE

Dates for the next 6 meetings are firm; the others will be held in sequence at approximately two week intervals.  Unforeseen developments could dictate the insertion of new subjects.

Click here to Register for the Webinars

You can register for our free McIlvaine Newsletters at: http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5

Bob McIlvaine

President
847-784-0012 ext 112

rmcilvaine@mcilvainecompany.com

www.mcilvainecompany.com