& SAMPLING NEWSLETTER January 2007 No. 327
Chinese FGD Market for CEMs is Huge
Naiqiang Yan represented the McIlvaine Company last November in Beijing when the NDRC addressed the challenge of identifying the best and most recent developments in environmental technology to implement the plan.
The price of FGD systems has continued to fall even though the market is exploding. System bids are reported to be as low as $15/KW. This is only 10 percent of the U.S. price. These low prices are discouraging the more experienced companies from bidding. The result could be failure to complete contracts, insolvency and components which last only a few years.
Presently there is no emission reporting system using CEMs. Participants believe the market will change substantially as CEMs reporting is initiated.
There could be a period of substantial investment in replacements. Already one major replacement project is underway. The early U.S. FGD market was similarly driven by new players with low prices. Low cost components and materials also caused problems and were eventually replaced.
Acid rain and fine particulate are serious problems in China. The effort to reduce those pollutants through scrubbing is sincere. Therefore the installation of low cost, unreliable systems is likely to be a short phase. There will be a big market for CEMS and many opportunities for offshore suppliers.
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