NR2010

NEWS RELEASE                                                                                                    OCTOBER 2014

$30 Billion NOx Control Market Centered In China

In many respects China is the greenest of the green. It is spending more on air pollution control than the rest of the world combined.  In its most recent five year plan, it has targeted NOx with a huge commitment to retrofit existing plants as well as add NOx reduction technology to new plants.  All these activities are documented in NOx Control World Market, published by McIlvaine Company.

Orders are presently being received for installation of equipment in 2017. Ninety two percent of the 141,000 MW of new coal-fired plant SCR systems installed in 2017 will be in China.  The world average investment in such air pollution facilities is $150,000/MW, so on a purchasing parity basis, this represents a $19.5 billion investment.  Top of Form

Megawatts   of SCR Capacity in 2017

Category

China

1000   MW

World

1000   MW

China   %

Existing   SCR 

719

1,200

60

New   SCR

50

58

86

Retrofit   SCR

80

83

96

Total   additional SCR

130

141

92

Retirements  

0

1

0

By 2017 China will be operating 60 percent of the world’s coal-fired SCR systems.  Much of the technology has been acquired by partnerships and joint ventures with international suppliers. However, the history of the air pollution industry has virtually no exceptions to the rule that the country with the largest market becomes the country with the strongest equipment suppliers.

Japan dominated the early NOx control market. Mitsubishi, Hitachi and others became dominate on the world stage because they captured the existing market which was primarily in Japan.  They then used this experience to move into Europe and the U.S.  The market swing to Europe and then the U.S. allowed suppliers in these countries to become world players. 

It is, therefore, likely that Chinese suppliers with a huge domestic market will eventually be vying with the Japanese, European and U.S. suppliers for orders around the world.  They have already built catalyst manufacturing capacity to supply most of the domestic market, so they have the largest catalyst capacity.  All this has been accomplished over the last 15 years.

China will continue to be a huge market for NOx control.  The country burns over 3 billion tons of coal per year.  Its plans are to burn 4.8 billion tons.  This compares to a world total of just 9 billion tons.  1.5 billion tons will be converted to syngas, fuels and chemicals.  These processes do not create much direct NOx but the product they supply does create NOx.  The coal converted to syngas will be transported from the western/northern coal fields to fuel gas turbines in the big cities. These turbines will be NOx generators.  This will create a large market for gas turbine SCR.

For more information on NOx Control World Market, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/104-n035