NR1927

NEWS RELEASE                                                                                                    MARCH 2014

FGD Revenues to Exceed $7.7 Billion in 2015 

Sales of flue gas desulfurization (FGD) systems will exceed $7.7 billion in 2015. This is the latest forecast in FGD Market and Strategies published by the McIlvaine Company.

The forecast includes both wet and dry scrubbing processes which remove sulfur dioxide from power plant exhaust stacks.

FGD Revenues ($ Millions)     

World Region

2015  

 Africa

      400

 CIS

          0

 East Asia

 5,000

 Eastern Europe

      300

 Middle East

      100

 NAFTA

 1,100

 South & Central America

          100

 West Asia

      100

Western Europe

     600

Total

7,700

Over 65 percent of the system revenues will be in East Asia. The majority of the sales in this region will be to power plants in China. The revenues per MW in China will be only 50 percent as large as the system revenues per MW in most other countries. Therefore, the Chinese market share based on FGD MW will be in excess of 80 percent of the total.   Most of the Chinese sales will be for new power plants, but there will also be some retrofits to old power plants without FGD. China has more scrubbers than any other country, but also more power plants without scrubbers than any other country.

There is competition among technologies. Wet scrubbers using limestone and making wallboard quality gypsum as an end product will be the most popular. Dry and semi-dry systems using lime will carve out a significant but minor share. In the U.S., dry injection system revenues will be substantial. These lower capital cost systems will be purchased for older power plants where the higher operating cost is preferable. Many of these power plants may be retired in the next ten years, so the expense over the remaining lifetime will be much less than if the expected life were twenty-five years.

For more information on: FGD Market and Strategies click on:http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/107-n027