NEWS RELEASE                                                                                                                JULY 2016

Market for Water used in Power Plants is Large and Fast Growing

Power plants extract and discharge more water than municipalities and industry combined. Water shortages and environmental regulations are opening a large market for many different technologies. The opportunities can be divided into three segments:

  • Water delivery
  • Water discharge
  • Water avoidance

Water Delivery:  The need to utilize alternative water sources presents a several billion dollar per year opportunity for:

  • Desalination:  A number of Chinese and Indian power plants have already incorporated desalinated water for cooling and boiler feedwater. Combined power and desalination plants already provide both municipal drinking water and power for many areas in the Middle East.
  • Use of treated municipal wastewater: Most power plants are within 100 miles of municipal wastewater plants.  With additional treatment this source is ideal for power plant needs.

Water discharge:  Zero liquid discharge (ZLD) is mandated for new power plants in China and is being evaluated for all new plants in water stressed regions.  In some areas, with plentiful water supply, ZLD has been chosen as a way to avoid delays in obtaining water discharge permits.

Regulations are tightening for plants which are discharging wastewater.  U.S. power plants have to meet new Emission Limit Guidelines (ELG).  The retrofit of scrubbers in the U.S., China and elsewhere has created new wastewater treatment challenges.

Water avoidance:   The steam plumes emanating from the stacks and cooling towers of plants are not only testimony to water loss but to inefficiency.  District heating is an alternative which can nearly double power plant efficiency. More modest efforts such as placement of the Blue Flint ethanol plant at one of the Great Rivers Energy power plants need to be explored.

Recirculated water for cooling towers results in a big reduction in water consumption versus once- through water.  The problem is the net water loss through evaporation. Dry cooling eliminates the water loss but requires considerable energy.  It is not practical in warm climates.

Initiatives to improve power plant efficiency have a direct effect on water consumption per unit of energy produced.  McIlvaine is conducting webinars on greater heat recovery from flue gas with more efficient air preheaters and the use of high temperature particulate removal to allow for the use of more efficient heat exchangers.

These opportunities need to be addressed on a plant by plant basis.  A number of Indian power plants have immediate needs. Adani Power has shut down five units of 660 MW capacity at the Tiroda plant in Maharashtra due to an acute water shortage. The 2100 MW coal-fired Farakka power station in West Bengal shut down its six turbines due to lack of water. The 1720 MW Raichur Thermal Power Station in Karnataka state has been hit by lack of water also. Since March 15, it has had to shut down several of its units indefinitely. The 1130 MW Parli power station in Maharashtra state has been shut down since July 2015 due to lack of water. NTPC's Solapur power plant is facing commissioning delays due in part to uncertainty over water supplies. In Karnataka's Krishna Basin, NTPC's Kudgi power plant and KPCL's Raichur power plant were affected by lack of water this summer.

Individual coal-fired power plant opportunities are tracked in two services:  42EI Utility Tracking System tracks all projects worldwide except China where projects are tracked in 42EIC Chinese Utility Plans.  Gas turbine projects are tracked in 59EI Gas Turbine and Combined Cycle Supplier Program.  Biomass, hydro and geothermal projects are tracked in N042 Renewable Energy World Markets.  The market opportunity is also addressed in a number of multi client market research reports Markets. End users are aided by the following services 44I Power Plant Air Quality DecisionsGas Turbine and Combined Cycle Decisions, Decision Guides.

NEWS RELEASE                                                                                                                JULY 2016

2017 High Performance Cartridge Sales Will Be $4.6 Billion

Total sales of cartridges for liquid filtration in 2017 will be $17 billion.  High performance cartridge sales will be $4.6 billion, whereas sales of general purpose cartridges will be $12.4 billion.  All of the $5 billion of cartridge sales for residential use will be general purpose.  All of the $3.5 billion of commercial cartridges will be general purpose.  By contrast, high performance cartridge sales in the pharmaceutical industry will exceed $1.6 billion.  High performance cartridge sales for healthcare will exceed $1 billion.  These are the latest forecasts in N024 Cartridge Filters: World Market.

Industry

High Performance Percentage

 Chemical 50
 Commercial – Point-of-Entry 0
 Commercial – Point-of-Use 0
 Electronics 75
 Food 60
 Healthcare 60
 Metals 50
 Oil & Gas 60
 Other Industries 40
 Pharmaceutical 70
 Power 50
 Residential – Point-of-Entry 0
 Residential – Point-of-Use 0
 Wastewater 30
 Water 30

There is a big difference in price and sales approach between high performance and general purpose cartridges. McIlvaine is using its own definition of high performance to include:

  • Unique service
  • Severe service
  • Critical service 

Unique service is defined as a cartridge which is custom engineered for an application.  The media, size and/or materials for the vessel are varied to meet a customer’s need.  The extent to which a cartridge is unique can be measured by how much more a customer is willing to pay for the custom design rather than be content with an off the shelf alternative.  A paint manufacturer may want a cartridge that is not too efficient on small particles but does remove the large ones.  The reason is that the small particles are the ones providing the color. So, while with standard cartridges the higher the efficiency the better, this will not be acceptable in paint filtration.

Severe service is defined as an application where particle adhesion, particle size, corrosion, erosion, pressure, or temperature is a concern. Purchasers are willing to pay more for better severe service cartridges because the alternative is high replacement rates, high maintenance cost and potential disruption to processes. The refining, chemical and power industries have many severe service applications.

Critical service is defined by the importance of the cartridge performance.  If safety, health, or quality of the goods manufactured are impacted by cartridge performance, then it would be critical service.  An example would be cartridges in the semiconductor industry which must remove any particles which would otherwise cause damage to a computer chip.  By contrast, the carbon cartridge in a refrigerator may deteriorate to where taste is impacted but failure would not be critical. The food, pharmaceutical and chemical industries utilize cartridges for food processing and, therefore, performance of the cartridge is critical.

Identification of the high performance cartridge segment is important to cartridge suppliers.  High performance cartridges offer the opportunity for higher profit margins.  They are also sold based on determining the lowest total cost of ownership.  Therefore, the route to market is different than for general purpose cartridges.

For more information on N024 Cartridge Filters: World Market, click on:   http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/117-n024

NEWS RELEASE                                                                                                                JULY 2016

Gas Turbine Owners Will Spend $1.3 Billion for Ultrapure Water Systems at New Gas Turbine Combined Cycle Power Plants

Ultrapure water (UPW) systems are critical to the steam cycle in gas turbine combined cycle (GTCC) plants.  In 2017 more than $1.3 billion will be spent on UPW systems for new GTCC generators. NAFTA will lead the way with 35 percent of the purchases.  These forecasts were reached through McIlvaine research for N029 Ultrapure Water: World Market and 59EI Gas Turbine and Combined Cycle Supplier Program.

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UPW components for GTCC plants are challenged by the rapid cycling which is required.  Wind and solar are playing an increasing role in power generation but their operations are not constant.  As a result, the GTCC plants are operated to balance the fluctuating contribution from the other sources. Flow accelerated corrosion and other problems are being addressed.  Operators are being assisted in dealing with these problems in another McIlvaine service 59D Gas Turbine and Combined Cycle Decisions.

For more information on the reports and databases contact Bob McIlvaine at 847 784 0012 ext. 112 This email address is being protected from spambots. You need JavaScript enabled to view it.

NEWS RELEASE                                                                                                                JULY 2016

Fluctuating Choke Valve Market Will Bounce Back

The choke valve market ranges between $250 million and $400 million per year depending on the definition and where we are in the oil and gas cycle. A significant portion of choke valve sales are to oil and gas companies. So, in the present depressed oil price market, we are in the lower range of sales. The definition also has a major effect on the revenue determination. The terms choke, control and axial are used in different ways.  With some definitions the market is much larger than with others.  Here are some ways the term is defined:

  • Flow path: Angle most important - if it is axial it is control, if it is angle it is choke.
  • Trim:  If one type of trim is used it is most suitable for choke, if another it is for control.
  • Location:  If it is extraction it is choke, if it is other applications it is control.
  • Valve type:  For some valve suppliers “choke” is just one of a number of applications and not a type of valve.

McIlvaine is pursuing refinements to its choke valve forecasts inN028 Industrial Valves: World Market.

At the same time, a Decision Guide on choke valves is being updated. This guide is displayed at: Choke Valve Decision Guide

Some additional information not yet posted to the guide includes the Severn globe and angle control valves where “choke” is an application and not a valve type.  Ross Waters of CGIS has guided us to the API Composite list which is updated daily.  It lists suppliers authorized to use the API Monogram on API Specification 6 A products for well head and Christmas Tree products. The highest specification level is 4.  Here are suppliers A-J meeting that level for chokes.

Ados, Pakistan Cameron, Romania FEPCO, Columbia
BHEL, India Cameron, Venezuela FMC, France
Breda, Italy Cameron, CA FMC, Saudi Arabia
Cameron, Malaysia Cameron, LA FMC, Singapore
Cameron, Singapore Cameron, OK FMC, LA
Cameron, SA Cameron, UAE FMC, Malaysia
Cameron, Argentina CCI, South Korea GE Oil and Gas, Houston
Cameron, Mexico CCI, Czech Republic GE Oil and Gas, UK
Cameron, Houston CCI, CA GE Oil and Gas, OK
Cameron, Ireland D Serv Doha, Qatar Jiangsu Jinshi, China
Cameron, Norway Delta, Qatar JVS, India

There are a substantial number of additional level 4 suppliers in the J-Z range as well as substantial numbers of companies with a level 3 authorization.

There is also API specification 16-C for choke and kill systems where drilling chokes are listed.  Among the suppliers included are Aswan National Oilwell Varco, Cameron, Chengde, Chongqing, Control Flow, Inc., Cortec, Delta, EXPRO and many others.

For more information on the reports, custom forecasting and technical analyses contact Bob McIlvaine at 847 784 0012 ext. 112 This email address is being protected from spambots. You need JavaScript enabled to view it.

NEWS RELEASE                                                                                                                JULY 2016

Gas Turbine Owners Will Spend $300 Million for Pumps at New Gas Turbine Combined Cycle Power Plants

Pumps are critical to the steam cycle in gas turbine combined cycle (GTCC) plants.  In 2017 more than $300 million will be spent on pumps for new GTCC generators.  NAFTA will lead the way with 35 percent of the purchases.  These forecasts were reached through McIlvaine research for N019 Pumps World Market  and 59EI Gas Turbine and Combined Cycle Supplier Program

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Boiler feedwater pumps for GTCC plants are challenged by the rapid cycling which is required.  Wind and solar are playing an increasing role in power generation but their operations are not constant.  As a result, the GTCC plants are operated to balance the fluctuating contribution from other sources. Flow accelerated corrosion and other problems are being addressed.  Operators are being assisted in dealing with these problems in another McIlvaine service 59D Gas Turbine and Combined Cycle Decisions.

For more information on the reports and databases contact Bob McIlvaine at 847 784 0012 ext. 112 This email address is being protected from spambots. You need JavaScript enabled to view it.

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