Mcilvaine Insights


No. 122   October 15, 2019


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

                  FGD Crowd Decisions

                  Tariffs and Conflict could Reduce the Combust, Flow and Treat Market by $75 billion/yr

                  Big Growth in U.S. Petrochemicals Market due to Surprisingly Low Oil and Gas Cost

                  Woven Belts and Cloths for Coal Fired Power Plants


FGD Crowd Decisions

The last FGD newsletter provided descriptions of the activities of many of the SOx-NOx India participants e.g. suppliers, utilities, consultants and associations. The optimum choices of FGD components will be made through crowd decisions involving all of these knowledge resources’ Power Plant Decisions in conjunction with associations such as Mission Energy and Dry Scrubber Users are making this possible Insights - October 7, 2019.

Tariffs and Conflict could Reduce the Combust, Flow and Treat Market by $75 billion/yr

The combust, flow, and treat (CFT) products and services markets will exceed $400 billion next year. The market has typically been segmented by McIlvaine on geographical end use. However, this analysis is based on where the profits are generated. India and Italy are major exporters of valves. Africa will enjoy a rapidly increasing market but China will be one of the main beneficiaries in terms of CFT products and services. It is building complete power plants and mines and, in many cases, taking part ownership of them.

The market in 2030 is likely to rise to just under $600 billion if there is a lack of government interference. However if there is interference in the markets the revenues could only rise to $535 billion. Effect of Interference on the Combust, Flow, and Treat Markets

Big Growth in U.S. Petrochemicals Market due to Surprisingly Low Oil and Gas Cost

The petrochemical industry segment of the Combust, Flow, and Treat (CFT) market will grow faster than the average segment. Suppliers with a strong U.S. presence can take advantage of a market growing at close to 9 percent per year. The rapid growth, potential for innovation, market access and the emphasis on better rather than low priced components make this a Most Profitable Market (MPM) opportunity.

The U.S. will gain market share over the next six years due primarily to the cheap supplies of feedstocks. Just within the last few months the major oil companies have made clear their intention to invest a higher percentage of capital on U.S. shale oil and gas extraction. Chevron believes that it can extract oil at a cost of just $15 per barrel. ExxonMobil believes it can be profitable with $30/bbl oil. Both companies are expecting the U.S. liquids production to be 25 million bl/d by 2025. This compares to IEA and OPEC forecasts for the U.S. production at just half this amount.  U.S. Petrochemical Industry is a Most Profitable Market (MPM) Opportunity for CFT Providers

Woven Belts and Cloths for Coal Fired Power Plants

The McIlvaine Company has continued to grow vertically in terms of industries and technologies and horizontally in terms of the number of Air, Water, and Energy products it covers.  It has added to its air pollution control, cleanroom, centrifuge, cartridge, membrane, oxidizers, burners, pumps, valves, chemicals with new efforts on dryers, fans, compressors, seals, hose, and couplings.  In terms of industries it has added lithium, biopharmaceuticals, and manufactured frac sands to its industry coverage. In each industry segment it has added sub segments e.g. in food there are now nine sub segments

The major clients are the suppliers.  But by providing the end users with the true costs of various  products a whole new route to market is created. This true cost analysis approach also allows  suppliers to pursue their most profitable markets.

One example would be the market for woven belts and cloths for the Indian power plant market. Because India is installing 100,000 MW of wet limestone FGD systems the market for replacement gypsum dewatering vacuum filter belts will rise substantially to $8 million/yr. by 2024.


Coal fired power plants will spend $235 million for belts and cloths this year.



Revenues will increase at greater than five percent a year due to the growing use of wet limestone systems, the need to eliminate flyash ponds in the U.S. and a number of other countries, the adoption of zero liquid discharge, and the requirement that Chinese plants near oceans use desalinated water.

There are only 500 major coal plant owners (both industrial and utility) around the world.  A few dominate the purchases. Shenhua Guodian will spend over $30 million for belts and cloths this year.  NTPC in India will be spending more than $4 million/yr for belts and cloths by 2024. 

In terms of pursuing the most profitable market, there are only a few companies capable of making belts with 50 m2 of belt surface.  The Chinese market is very large but there are established suppliers. The markets in India and South East Asia are just being established. So, in terms of profitability there is a justification for pursuing this segment.

The fact that McIlvaine is also providing true cost analysis to owners adds to the potential profit margins of those with the lowest total cost of ownership products. But this effort can also shape the total market.  For example; by using lime instead of limestone a very white gypsum can be produced. This can replace precipitated calcium carbonate as a paper coating and generate a significant byproduct revenue stream. However, the function of the belt filter becomes more critical and thus increases the potential market.

The market for belts and cloths for all applications is analyzed in N006 Liquid Filtration and Media World Markets.

The market for FGD is analyzed in FGD Markets and Strategies

Bob McIlvaine can answer your questions at  847 784 0012 cell 847 226 2391.

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