Mcilvaine Insights


No. 112   July 23, 2019


Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.

·       Would You Rather Share Sales Leads with Your Allies or with Your Competitors?

·       Sales Program based on the 500 Coal Plant Operators that buy 99 Percent of the Combust, Flow and Treat Products

·       Briefs



Would You Rather Share Sales Leads with Your Allies or with Your Competitors?

Companies have become very successful through making acquisitions and then allowing each division to function independently. Many of these same companies rely on sales leads for new business. Is it fair to ask the question:  Would you rather share sales leads with your other divisions or with your competition?

The answer may be that the risk to limiting independence is paramount. If so a bottoms up rather than top down information sharing program will be a great choice. Another relevant question: Can you also leverage your relationships with sales representatives, distributors, complimentary product suppliers, and OEMs to boost sales?

The answers to these questions depend on whether the product is general or high performance.  A sales lead on a product which will be purchased next month strictly on price and delivery can best be provided by a company specializing in sales leads. A high-performance product sales campaign requires a comprehensive approach which can be achieved with internal information sharing among divisions.

The market is changing. Products which would have been purchased just on price in the past are now purchased as if they were high performance. If decisions are made based on true cost (total cost of ownership) then the category would be high performance. Price and delivery play a role but other factors are more important. General performance product decisions are typically made by purchasing people at the plant level. High performance product purchase decisions involve a number of people. They include corporate people who would determine which suppliers are eligible.

High performance in a narrow definition can just include products in severe or critical service and products which require engineering prior to production. This definition focuses on the physical aspects of the product. A choke valve fits this category in three ways. The service is severe since abrasion and corrosion potential is high. The service is critical because if the valve  fails the operation must cease. There are a number of engineered choke valves which take months to produce and deliver.

A broader definition of high performance includes products which otherwise would be in the general class. The fact that the cost of travel to an offshore oil rig is high will influence what would normally be just a price decision. Products which are purchased not just on price but because they are intelligent would fall into the high performance category. The product  manufacturer can supply localized software which feeds into an edge computer which then feeds into the cloud. The supplier expertise about his product can be used to maximize the product  performance. The package of the product and its smart devices can be sold based on the cost savings over time rather than on initial price.

Another category is “guided”. Product decisions can be made based on the guidance or support furnished by the supplier. With the ability to monitor the product operation remotely, the   supplier can advise operators and maintenance personnel to insure that the cost of ownership is minimized. Revenues based on annual contracts can greatly exceed the initial purchase price. 

Bob Buckman wrote a bestselling book titled “Building a Knowledge Driven Organization” He was the chairman of  Buckman Laboratories, a major supplier of treatment chemicals. One of the features incorporated at Buckman is a process where sales or application people can ask a question in what would now be a chat room and every employee at Buckman who would have knowledge was urged to weigh in.

We previously used ten divisions of Idex as an example of how the sharing program could work  Bottoms Up Collaboration Around Each Major Flow and Treat Prospect.  Examples of ten Japanese purchasers were provided. They will buy spend $17 million per year on products such as specifically available from IDEX (Serviceable Available Market) and $2 billion per year on pumps, valves, and controls (Total Available Market).

If one browses LinkedIn  for people who would have useful information in the effort to sell high performance products to these ten companies, you see hundreds and possibly thousands of people in the various IDEX divisions who can make contributions. There are regional sales managers in Singapore and many product specialists in various locations. But there are also application specialists with titles such as  “Natural Gas Dehydration Glycol sales manager. One division makes material size reduction equipment and has process knowledge which will be helpful to the pumps, valves, and controls groups.

The bottoms up knowledge sharing is one of the features in a whole new sales approach explained in Most Profitable Market Program at

The foundation of the program is the forecast of purchases by each major prospect. This information facilitates coordination with representatives and distributors in new ways. They are often suppliers of systems and have process knowledge. Their knowledge about a BASF plant in their territory can be useful in selling to BASF plants elsewhere. Better yet they can provide successful case histories.


Quality of Various Sales Lead Sources



Competitor Risk





Other Divisions





Representatives and Distributors

Care Needed


Can be High


Complimentary Product Suppliers

Care Needed




Your Suppliers

Care Needed




Sales Leads


General Only



Many sales reps sell complimentary products. Why shouldn’t the OEMs leverage the synergies proactively rather than rely on representatives to do so.  Suppliers of materials and components are another resource. The concern is that they may also be dealing with your competitors.

Except for very limited general purpose CFT products, a very cost effective sales approach is to utilize allies. Bob McIlvaine can answer your questions on the program at office - 847 784 0013,  cell - 847 226 2391 or

Sales Program based on the 500 Coal Plant Operators that buy 99 Percent of the Combust, Flow and Treat Products

Coal fired power is the ideal industry for which to adopt a sales approach based on predicting purchases for each prospect rather than reactively responding to sales leads.

Ninety-nine percent of all the combust, flow, and treat products and services are purchased by just 500 companies. Fifty percent are purchased by just 50 companies. With data analytics and centralized monitoring an increasing percentage of the purchases are made based on lowest total cost ownership. The decision making involves multiple individuals.  Success requires major sales efforts long before a request for quotation is issued. 

The Shenhua/Guodian merger resulted in an owner with 200,000 MW of coal fired capacity.  However, there remain several entities from a decision making perspective.  Seventy percent of the purchasing decisions for existing plants are made by 27 companies with more than 10,000 MW of capacity.  However, 150 owners are making the decisions for 70 percent of the new plants.

Coal Fired Capacity for

Individual Owners





Planned Cumulative

























































? 100




There is a logical disparity between the ratio of new plants to existing plants by owner. For comparison we picked owners with  6000 – 9000 MW range of existing and planned capacity.    J Power is the only company appearing on both lists.

Planned Coal Fired



Power Finance Corporation


Egyptian Electricity Holding Company




China Resources


NLC India












Operating Coal Fired







Inter RAO


Vedanta Resources


Xcel Energy


Henan Investment Group


Beijing Energy Group




Damodar Valley Corporation





The big growth in coal is in South East Asia and Africa where existing capacity is small. The existing capacity is mostly in countries where new coal fired plants are being discouraged.

McIlvaine provides a comprehensive program to help suppliers pursue this market. The weekly Utility E-Alert has new project information as well as technical and regulatory developments.  The tracking system database has information on each plant. The Utility Tracking System website also has a coal fired forecast by country through 2024. There are detailed profiles of the largest purchasers as well as identification of all 500 purchasers.  With the search engine it is possible to extract the latest information on each purchaser.  Details on the program are found at 42EI Utility Tracking System

This service can be combined with any of the market reports to obtain individual product forecasts

Similar programs in each industry are available as explained in Most Profitable Market Program at

For more information on these services contact Bob McIlvaine 847 226 2391



Here are links to the News Releases published in the last month and updates to them from the last few days.

$10 Billion Market for SCR Systems, Reagents and Catalyst

At least one U.S. power plant has avoided SCR due to the changes in policy at EPA. But Europe is facing more stringent limits. India is moving forward and China wants to make coal plants as clean as natural gas. One way to is encourage third party ownership of pollution control systems.

Maximizing CFT Profits in the Coal Fired Power Generation Industry

For smaller companies collaboration with those offering complimentary products is a way to economically reach the international Market.  McIlvaine will be one of the speakers in a half-day session at PowerGen on this subject.

SiloBuster Webinar Program for Combust, Flow, and Treat (CFT) Suppliers

There is a large opportunity to leverage the employee knowledge residing in various divisions and geographies.

Oil, Gas, Refining Daily Project Tracking and Monthly Analysis

The seizure of a British ship by Iran  makes 25 percent of the world oil shipments uncertain.  This is likely to result in even greater shale investment in the U.S.

Indonesia is One of Many Asian Countries Relying on Coal

The Chinese Belt and Road initiative is contributing to some new coal fired activity. But the preference for coal is in S.E. Asia is due to the need for power and the promise that coal is the most  reliable way to obtain it.

Factors Shaping the Combust, Flow and Treat (CFT) Market

Asia continues to be the big growth area. Some European and U.S. CFT suppliers have as big a market share in Asia as in their home region. However, most have weak sales in Asia. Instead what we see is Asian suppliers moving into the western markets.

Large Maintenance and Repair Market for World’s Coal Fired Boilers

Upgrading plants to increase efficiency is another  revenue generator.  China has a big program to upgrade sub critical plants and even supercritical plants to approach ultra-supercritical and efficiencies near 50 percent.

Innovation in the Combust, Flow and Treat Industry is a Product of Wisdom through Interconnection

Media and conference organizers are one source of new developments which can reduce cost of ownership McIlvaine, IFN, INDA, and FILTXPO are collaborating on a true cost analysis program.  The most recent issue of IFN covers Hot Gas Filtration True Costs.

Pump Companies Continuing to Change Strategy and Ownership

Absent substantive engagement this week, Crane will cease its efforts to acquire CIRCOR and will not extend its tender offer, amended on July 8, 2019, to acquire all outstanding shares of CIRCOR for $48 per share. The tender offer is scheduled to expire at Midnight, New York City Time, on July 19, 2019. The offer represents a 57% premium to the undisturbed market close on May 20, 2019 and 46% and 61% premiums over the three- and six-month volume weighted average share prices, respectively.

Flow and Treat Purchases by TSMC and Other Chip Producers

Taiwan is expected to overtake South Korea as the largest semiconductor equipment market, with estimated purchases of over US$12 billion this year, according to SEMI, a global industry association of semiconductor equipment and material suppliers.

Due to slow growth of the industry, global semiconductor equipment sales are likely to fall this year by an annual 18.4 percent to US$52.7 billion, SEMI said.

Only the Taiwanese and North American markets are expected to see growth, while those in South Korea, China, Japan and Europe may slide, the association said.

LNG is a Most Profitable Market for CFT Suppliers


Here are several entries in our N049 Oil, Gas, Shale and Refining Markets and Projects

Venture Global LNG Announces Expansion to 60 MTPA, Expands LNG Process System Agreement with BHGE

Venture Global LNG, Inc. announced that it will expand the scope of its LNG development business to 60 million tonnes per annum (MTPA) of production based on customer demand.

Energía Costa Azul LNG Receives US Non-FTA Approval for Liquefaction Infrastructure Project in Mexico

Authorizes the Export of US LNG from both ECA LNG Phase 1 and Phase 2 - North American West Coast Location provides direct access to US Natural Gas to Markets in the Pacific Rim - ECA LNG is one of Sempra Energy's 5 Strategically Located LNG Projects in Development

Sempra Energy's Port Arthur LNG Project and Two Natural Gas Pipelines Receive Final Environmental Impact Statement

Sempra Energy announced January 31 it received the Final Environmental Impact Statement (FEIS) from the Federal Energy Regulatory Commission (FERC) to construct the Port Arthur LNG natural gas liquefaction-export project in Jefferson County, Texas, as well as the Texas and Louisiana connector pipeline projects that will deliver natural gas to the new export facility.

FERC Staff Issues the DEIS for the Annova LNG Brownsville Project (CP16-480-000)

The Federal Energy Regulatory Commission (FERC or Commission) has prepared a draft environmental impact statement (EIS) for the Annova LNG Brownsville Project (Project) proposed by Annova LNG Common Infrastructure, LLC; Annova LNG Brownsville A, LLC; Annova LNG Brownsville B, LLC; and Annova LNG Brownsville C, LLC (collectively Annova). Annova requests authorization under Section 3(a) of the Natural Gas Act and Part 153 of the Commission’s regulations to site, construct, and operate a liquefied natural gas (LNG) terminal (LNG terminal) to liquefy and export natural gas at a proposed site on the Brownsville Ship Channel in Cameron County, Texas. The Project consists of the following facilities: • pipeline meter station; • liquefaction facilities; • two LNG storage tanks; • marine and LNG transfer facilities; • control room, administration/maintenance building; • site access road; and • utilities (power, water, and communication systems).


Treatment Chemicals Most Profitable Market Analyses based on Knowledge

Ecolab has achieved double digit growth for 20 years and 12 percent in the most recent period. Fifty-eight percent of the sales are in North America and only 12 percent in Asia/Pacific. So the market share in Asia Pacific is only 1/10 of the share in North America. The choice of treatment chemicals for ultrasupercritical boilers in China is critical.  The suppliers who are successful in this application have an advantage in pursuing the international markets.

The Lowest Total Cost of Ownership Cycle for Oil and Gas CFT Products

In hydraulic fracturing understanding the process is critical to assessing the market. Resin bonded sands can decrease erosion of the transfer pumps which decreases the cost of oil production which reduces the price of resin which reduces the cost of resin bonded sand.

U.S. Petrochemical Industry is a Most Profitable Market (MPM) Opportunity for CFT Providers


Here are  entries in  N049 Oil, Gas, Shale and Refining Markets and Projects  U.S based sales people will be responsible for projects contracted to McDermott and other U.S. based EPC firms.

Petrochemicals Set To Be the Largest Driver of World Oil Demand, Latest IEA Analysis Finds

Petrochemicals – components derived from oil and gas that are used in all sorts of daily products such as plastics, fertilizers, packaging, clothing, digital devices, medical equipment, detergents and tires – are becoming the largest drivers of global oil demand, in front of cars, planes and trucks, according to a major study by the International Energy Agency.

McDermott wins petrochemicals contract in Kuwait

Kuwait Integrated Petroleum Industries Company (KIPIC), a subsidiary of Kuwait Petroleum Corporation (KPC), has awarded McDermott International a technology contract for a petrochemical project in Al Zour, Kuwait. The award is for the basic engineering, technology license and catalyst for an integrated Low Pressure Recovery (LPR) and Olefins Conversion Technology (OCT) unit at KIPIC's Petrochemical Refinery Integration Project (PRIZe). The Petrochemical Refinery Integration project (PRIZe) will add a gasoline block, an aromatics block, OCT unit, polypropylene units, associated utility and offsite facilities to the existing refinery site. The new units will be closely integrated with the ZOR Refinery and LNGI projects which will be operated as an integrated facility once complete


Gas Turbines are a Most Profitable Market for CFT Suppliers

Here are recent headlines in 9EI Gas Turbine and Reciprocating Engine Supplier Program

COLORADO: Atlantic Power Announces Agreement for the Sale of Manchief Plant
LOUISANA: Entergy Louisiana Delivers Important Milestone Ahead of Schedule and on Budget
MINNESOTA: Southern Power announces Completion of Mankato Energy Center Expansion
PUERTO RICO: PW Power Systems Provides Energy Security for Puerto Rico’s Power Supply

EGYPT: MHPS Receives Contract to Upgrade Sidi Krir and El Atf Power Stations in Egypt

INDONESIA: MHPS Ships Gas Turbine for 500 MW Natural-gas-fired GTCC Power Generation System in Indonesia
IRAQ: GE Commissions Advanced Gas Turbine at Iraq’s Al Qudus Power Plant to Help Meet Summer 2019 Power Needs

RUSSIA: Nizhnekamsk Ccpp 495 MW: Natural Draft Cooling Tower Awarded To Hamon



Wet FGD: Most Profitable Markets

The transition of Boqi from a systems supplier to an owner and operator of FGD systems is significant.  This approach was initiated at NIPSCO in the U.S by Air Products and Chemicals and Mitsubishi and proved to be profitable for the supplier and a low cost solution for the owner.  The Chinese government is facilitating this approach as a way to minimize emissions.

Hydraulic Fracturing Presents a Most Profitable Market Opportunity for CFT Product and Service Companies

Argentina is a promising market. On July 19 President Energy said fracturing activities at a well in Argentina had so far generated results at the high end of initial expectations. The company is conducting a trial hydraulic fracturing, at the PFO-16 well at the Puesto Flores field in Rio Negro Province. The frac operation was completed successfully with over 100,000 pounds of proppant going into the formation.


Power Market Guidance in Weekly Twenty Page Alert

Here are two articles from the 7/19 Alert

Thermax is building momentum in the World APC Industry


Thermax Limited has concluded an order of INR 471 crore from an Indian government power company to set up two flue gas desulfurization (FGD) systems at their thermal power plant in the state of Jharkhand.


As a part of the customer’s drive to meet the mandates for regulating SOx emissions from coal fired power plants, they plan to install two units of FGD systems of 500 MW capacity each at their plant.


“Since its inception, Thermax has been one of the key contributors to the nation’s pollution abatement journey by providing sustainable solutions. This prestigious order reinforces our capabilities in supporting power plants to meet the stringent emission laws laid by the government in line with its commitment to the environment,” says M.S. Unnikrishnan, MD & CEO, Thermax Limited.


The scope of supply includes design, engineering, manufacturing, civil work, construction and commissioning of the FGD systems. The delivery of the project is scheduled over 30 months.




Naveen Sadhu, Global Head (S&P), Environment Business, Thermax Limited



Naveen was interviewed by PowerLine where he reflected on his two decades of APC experience.


In 2013, Sadhu took charge of Thermax’s international business on the particulate and gaseous emissions side, with a special focus on Latin American markets. He was instrumental in the development of Thermax’s brand in the international market. Now, with new norms in the domestic business, he has been focusing on strengthening the company’s footprint in the FGD and deNOx space. Thermax is currently bidding for multiple projects for FGD in the country, he informs.


Sadhu remarks that although there has been progress in the power sector in meeting the new norms, more efforts are needed to ensure implementation. According to him, while particulate matter emissions control by thermal power plants has progressed well, issues still remain in terms of SOx and NOx control. One of the challenges is technology constraints. Despite the presence of an adequate number of equipment players, the capacity to deliver falls short. Other

issues are inadequate availability of limestone and water, space constraints for FGD systems, installation, high capex and opex needs. In terms of pricing trends, in the emission control market, he notes that going forward with greater indigenization prices should remain competitive.



Dry Scrubber Users will meet to “Work Smarter not Harder”

The 2019 Dry Scrubber Users Group will take place the week of September 9th in Kansas City, Kansas bringing together a multitude of end users and vendors for dry scrubber applications and technologies such as spray dryer absorbers (SDAs), circulating dry scrubbers (CDS) and dry sorbent injection (DSI).  The theme of this year’s conference is “Work Smarter, Not Harder”.  We have all experienced the change in the power industry over the past few years coupled with a generation of engineers and operators that have or will be retiring as we usher in a new generation of young engineers and operators who will take the reins.  As a result the industry will have to continuously evolve to new technologies as well as new operating philosophies in order to minimize operating and maintenance costs while maximizing plant performance.  While these constraints pose many problems this also presents opportunities for new solutions which is the essence of this year’s theme.  

  This year’s conference will consist of the following:

  • 3rd annual pre-conference golf tournament on September 9th
  • Welcome reception on September 9th
  • Technical presentations and break-out sessions on September 10th and 12th
  • Plant tours and social activities as well as vendor exhibit night on September 11th


This year the conference has three (3) plant tours lined up consisting of the following:

  • Kansas City Power & Light Hawthorn Station to showcase the SDA technology
  • Kansas City Board of Public Utilities Nearman Creek Station to showcase the CDS technology
  • Kansas City Power & Light Iatan Station to showcase the Spray Dryer Evaporator technology for disposal of wet scrubber blow down for zero liquid discharge operations


This year is unique in that not only will there be discussions and content on various dry scrubbing technologies that will attract the typical audience but with Iatan’s participation this year opens the door for facilities with wet scrubbers installed that are interested in future regulations that may drive them towards zero liquid discharge to attend to see the Iatan facility in person and talk directly to Iatan representatives to learn from their use of the Spray Dryer Evaporator technology.

If anyone is interested in registering for the conference, sponsorship, exhibiting, submitting abstracts for giving a presentation or simply have questions please visit or contact the Dry Scrubber Users Group President, Gerald Hunt, at

Dry Scrubber Silo Busting

The DSUA conference will be busting the silos in four areas. One is the retained knowledge of the soon to be retired engineers. The conference is a path for the younger engineers into the silo.  Another silo is the new technology. While the semiconductor industry works hard to avoid silos, the power industry is known to be conservative. This is another way of saying that some very large silos have to be busted in order for a new and better technology to be accepted.

A third silo is the experience in other industries. Instrumentation, valves, nozzles and other components with unique and valuable features may first be developed for mining or cement applications. DSUA also provides a forum for users in waste to energy to interface with  users in power, steel and other industries. A fourth silo is the knowledge in other parts of the world. China has the most-dry scrubber installations in the world.


The question is posed as to how the DSUA silo busting can be enhanced. DSUA has a website and links to past papers. So previous attendees have access to them. An analysis has been prepared listing the resources supplied by DSUA and the opportunities for making a larger international contribution to furthering the use of dry scrubbing and DSI.

Part of that effort could be quarterly webinars. Another aspect would be collaboration by DSUA with media and conference organizers. McIlvaine is an organizer of a half-day session at PowerGen in November. The session will use dry scrubbing and DSUA silo busting as an example to show how U.S. suppliers can expand into Asian and other developing markets. This can be followed by discussions on the exhibit floor with AndritzBeth and other dry scrubber system suppliers. It is interesting that there are more offshore dry scrubber exhibitors than U.S.- based although Andritz is in the U.S. based on an acquisition.


There is a SOx-NOx conference in India at the same time as DSUA  A brief discussion relative to DSUA could also take place. The powering sponsor will be NTPC who is the largest  Indian utility.  It is installing 4 x 250 MW of DSI and is installing a number of FGD systems.

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