FGD revenues will grow due to new NSR ruling
NORTHFIELD, IL, March 30, 2006 -- The already red hot FGD market will grow even faster due to a judicial ruling striking down the rules that allowed old coal-fired power plants to avoid new source review. The installation of flue gas desulfurization (FGD) systems is the only way new sources or modified sources can meet the emission requirements. The McIlvaine Company, in its continually updated online report "FGD World Markets," predicts that FGD expenditures in the U.S. between 2006-2020 will be $37 billion dollars. This represents 250,000 MW of additional FGD systems including those for new plants as well as the retrofits of old ones.
The investment for FGD in China will be even higher during the period. Chinese investment in FGD will exceed $40 billion even though the investment per megawatt is considerably less. China is both planning many new coal-fired plants and is committed to reducing sulfur emissions from existing plants.
Markets in other Asian countries will also be large. India is expanding electrical capacity rapidly. Coal will be the biggest fuel source. As a result, FGD systems will be installed on many plants. Indonesia, Vietnam and other developing Asian countries will install efficient pollution control equipment on each new coal-fired plant.
There are a number of ways to desulfurize. There are both dry and wet technologies. There is also a variety of chemicals that can be used. For the next five years the predominant technology will be wet limestone.
For example, in 2009 McIlvaine forecasts that $4.7 billion will be spent worldwide for these wet limestone systems whereas only $292 million will be spent for wet lime systems. The two dry technologies, spray dryers and circulating dry scrubbers (CDS), will account for only $551 million. Other approaches resulting in fertilizer or sulfuric acid will account for only $164 million out of the $5.7 billion total.
From 2010-2020 wet limestone systems will capture a smaller percentage of the market due to a number of factors including the limited demand for wallboard gypsum, the need for ultra high removal efficiency, water pollution control considerations, and emerging markets for more valuable by-products.
For more information on FGD World Markets, click here.
The McIlvaine Company (www.mcilvainecompany.com) is based in Northfield, IL, with a staff of 35 people that includes engineers, scientists and market researchers.
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