The Environmental Systems Market Is a $1 Billion/yr. Opportunity for Valve Companies

The environmental systems suppliers generate revenues of over $100 billion per year. The systems they supply include valves valued at nearly $1 billion/yr.  This is the conclusion reached by the McIlvaine Company in N028 Industrial Valves: World Market.

The largest segment of the market is for valves dealing with water and slurries.  Valves used for fabric filter pulse cleaning and air monitoring valves are the exception.  Some of the individual valve purchases are substantial.  The knife gate and ball valves used in a large power plant flue gas desulfurization system cost over $1 million.  ITT, Pentair and Crane purse this market with dedicated sales people.

Some of the companies such as B&W and MHPS are buying valves for many processes.  Both of these companies furnish environmental systems but their largest market is for complete coal-fired power plants.

The largest 140 environmental companies average annual valve purchases of $1.3 million.  These companies are all identified with contacts in 53DI OEM Networking Directory.

For more information, click on: N028 Industrial Valves: World Market.

Coal Is Still King in Sales of Ultrapure Water Systems

Power plants will spend over $1 billion for ultrapure water systems, replacement parts and consumables in 2016.

Despite the negative publicity toward coal in the West, the bulk of the new system purchases will be for coal-fired boilers.  Most of this activity will be in Asia.

New ultrapure water systems for gas turbine/combined cycle power plants will account for only 25 percent of the total.  One reason is that the size of the ultrapure water system for a combined cycle power plant is only half the size of the system for a coal-fired power plant of similar output.

The consumables and aftermarket is dominated by coal-fired power plants.  Replacement pumps and valves, water treatment chemicals and improved instrumentation expenditures by Chinese, U.S. and other major coal-fired boiler operators will account for 70 percent of the total.

Large coal-fired boiler construction programs in India, Vietnam and Indonesia will boost the world market in the next five years.

The forecast for new systems and consumables is found in N029 Ultrapure Water: World Market. 

Each new coal-fired power plant is tracked in 43I Utility People.

Each gas turbine combined cycle power plant is tracked in 59EI Gas Turbine and Combined Cycle Supplier Program.

The Top 200 Purchasers Buy More Than 50 Percent Of The World’s Industrial Air and Water Monitoring Equipment

The largest users of industrial air and water monitoring equipment are also the industries which are most concentrated.  A few oil and gas companies produce most of the oil and gas.  Large power companies produce most of the electricity.  A few large electronics companies produce most of the semiconductors and flat panel displays.  In fact, Samsung is a leader in both products.

Due to the government ownership of wastewater plants in many countries and the growth of third party operators such as Veolia and Suez, the water and wastewater industry is also relatively concentrated in terms of decision makers.

Monitoring equipment suppliers sell directly to some large users and sell through distributors to others.  The percentage purchased by the large users is rising and calls for more focus on this segment by the suppliers.  This is the conclusion reached by McIlvaine Company in N031 Air and Water Monitoring: World Market.

The 2015 industrial air and water monitoring sales will exceed $10 billion.  Municipal water plants will be the largest purchasing sector followed by municipal wastewater and then power.

The McIlvaine Company has created a program for suppliers to maximize sales to the largest purchasers.  It combines the air and water monitoring report with tracking of prospects and projects. Detailed Forecasting of Markets, Prospects and Projects.

For more information click on:  N031 Air and Water Monitoring: World Market

Other support services for the program include:

42EI Utility Tracking System

59EI Gas Turbine and Combined Cycle Supplier Program

N049 Oil, Gas, Shale and Refining Markets and Projects,

80A World Cleanroom Projects

Industrial Water: Plants and Projects http://home.mcilvainecompany.com/index.php/databases/27-water/883-n033

Harm from CO₂ vs. Other Pollutants

An editorial in the January 2, 2016 New York Times was titled “The Dirty Truth About ‘Clean Diesel’.”  It documents deterioration in air quality in Europe as a result of a program to increase the use of diesel-powered vehicles because they emit less CO₂ than those powered with gasoline. The substantial increase in NO_x and fine particulate emissions are leading European policy makers to belatedly view “diesel as a devil’s bargain.”

China has just started a $20 billion pipeline to transfer clean coal gas to cities across the nation.  The hope is to eliminate the smog caused by burning solid fuels.  So China has concluded that increasing CO₂ in order to reduce NO_x and particulate is worthwhile. 

Every pollution control decision may not be a “devils bargain” but there is a negative aspect.  It may just be cost but typically the reduction of one pollutant increases another.  Water purification is an example.  Substantial energy is needed to purify water with reverse osmosis.  The investor has decided that increased CO₂ is offset by the clean water value.

Informally the world is functioning with a common metric to measure all harm and good.  Every government, business and personal decision involves use of this metric.

The problem is that the metric values differ widely among decision makers.  The decision to donate to a charity or buy a new coat is individualized based on life quality perceptions.  Life quality, in turn, is shaped by tribal values and differing views on discounting future values.

The European facing vehicle smog vs. CO₂ at home will have a different preference than if asked to choose between CO₂ and smog for China.  CO₂ causes global but not local harm. Tribal values cause us to look at every decision through a prism of our own self-interest and then the interests of our tribe (family, city, country, etc.).

The well fed protected American will more likely put more value in creating a better life for grandchildren than the Syrian refugee who can justifiably discount any future value.

McIlvaine has attempted to create a decision system with a harm metric which fulfills the true goal of individuals to maximize life quality and not quantity.  More information is found at:  Sustainability Universal Rating System.  

Review Your Product Listings

The 53DI OEM Networking Directory lists many thousands of companies.  It is important that we list your products correctly.  There is no charge. So please review your present listings and send us any corrections.  You can view your current listing at:  View and Correct Your Product Listings

Lots of Opportunities Tabulated In Our Latest Gas Turbine Alert

The Bi weekly Gas Turbine Alert is available as part of the 59EI Gas Turbine and Combined Cycle Supplier Program. 

Here are the headlines from the latest issue:

U.S. PROJECTS

FLORIDA:  Public Service Commission to Consider Need for FPL’s Okeechobee Power Plant

MINNESOTA:  Minnesota Power Seeking Bids for Major Gas-fired Power Plant

MINNESOTA:  Xcel Energy Selects GE’s 7F.05 Gas Turbine for Black Dog Peaker

OKLAHOMA:  TAS Energy to Supply Inlet Chilling System for Grand River Energy Center

PENNSYLVANIA:  GE to Provide Technology and Financing for Moxie Freedom Project

RHODE ISLAND:  GE’s Enhanced Steam Path (ESP) Upgrade at Entergy Plant Adds 26 MW

Dynegy Awards GE Contract to Upgrade 4 Power Plants with Advanced Gas Path (AGP) Technology

WORLDWIDE PROJECTS

BANGLADESH:  Siemens to Supply Key Components for Bibiyana South Power Plant

BENIN:  Genesis Energy’s 360 MW Power Project Will Provide 30% of Benin's Electricity

MEXICO:  Iberdrola Selects GE Turbines for Two New Cogeneration Power Plants

MEXICO:  Amec Foster Wheeler Wins HRSG Contract in Mexico

MYANMAR:  Sembcorp Signs Agreement to Build 225 MW Gas-fired Power Plant in Myingyan

UK:  Centrica Says Killingholme Gas Fired Power Plant Will Close in March 2016

BUSINESS

Gas Turbine Intake Filter Sales to Exceed $1 Billion By 2021

Charlotte-based SPX Corp. Announces Sale of Dry Cooling Business to Indian Company

KENTUCKY:  East Kentucky Power Receives Approval to Buy Bluegrass Generating Station

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

UTILITY E-ALERT

Here are some headlines from the Utility E-Alert.

#1253– December 18, 2015

Table of Contents

COAL - US

·       AEP Ohio files Settlement Agreement on expanded PPA

·       PRC OKs Partial shutdown for San Juan Coal-fired Power Plant

·       Duke Energy proposing On-site Coal Ash Landfill at W.S. Lee Station in SC

COAL – WORLD

·       BHEL commissions 500 MW Unit at Sagardighi Thermal Power Station in India

·       Hearing on injunction to halt Coal-fired Power Plants at Punta Catalina, Bani, Dominican Republic set for January 18

·       Environment Ministry instructs IEC to reduce Coal use at Hadera Power Plant

·       Chinese State-owned Enterprises want to build Power Plant in Brazil

·       China’s emissions pledges are undercut by Boom in Coal Projects Abroad

·       China offers Bonus to Coal-fired Power Plants to meet Emissions Rules

·       500 MW Meralco PowerGen Project finally begins construction

·       JAKS clears hurdles to carry out US$1.9bil Vietnam Power Project

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 and Recordings

McIlvaine webinars offer the opportunity to view the latest presentations and join discussions while sitting at your desk. Hot Topic Hours cater to the end users as well as suppliers while the Market Updates cater to the suppliers and investors.  Since McIlvaine records and provides streaming media access to these webinars there is a treasure trove of value only a click away. McIlvaine webinars are free to certain McIlvaine service subscribers. There is a charge for others.  Hot Topic Hours are free to owner/operators.  Sponsored webinars provide insights to particular products and services.  They are free. 

Hot Topic Hour Schedule and Recordings

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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