FGD & DeNOx Insights No

FGD & DeNO_xInsights
No. 38 October 2014

WELCOME

This bi-weekly FGD & DeNOx Insights provide excerpts from the McIlvaine FGD & DeNOx World Markets. It also provides excerpts from related publications. The market report provides the latest forecasts, market shares and insights relative to technology and opportunities.

· World Power Generation Project Headlines – Revision Dates: October 1 & 7, 2014

Industrial plants will be spending more than $8 billion annually for scrubber systems by 2019. This is the conclusion reached by the McIlvaine Company in Scrubber/Adsorber/Biofilter World Markets. (www.mcilvainecompany.com)

Subject	2019
Total	8,050
Absorber	3,648
Adsorber	1,563
Biofilter	596
Dry Scrubber	651
Other	312
Particulate	1,280

These forecasts include applications in the iron and steel, refining, chemical, food, petrochemical, non ferrous metals, pharmaceutical industries to remove particulate and gases from stack discharges. They do not include scrubbers used on coal-fired boilers. One reason is that the coal-fired boiler market is as large as the scrubber market in all other industries. This market is the subject of another McIlvaine report.

A third market is developing which will also need to be separately evaluated. This is the coal gasification and liquefaction market. Scrubbers are used in clean up of the gas produced in the indirect gasification processes. This market is potentially going to be bigger than either the industrial scrubber or power plant scrubber market.

There are less than100,000 MW of power plant scrubbers sold for new and retrofit applications each year. At $100,000-$200,000 MW this is an annual market of $10 billion to $20 billion. These scrubbers are cleaning up plants which burn 300 million tons of coal per year.

Coal gasification requires even more investment in scrubbers per ton of coal processed. China is planning to convert 1.5 billion tons of coal per year into synfuels and clean gas, fuels and chemicals. Other nations are also following this path. Posco in South Korea is installing a coal gasifier in its steel mill and has set up a joint venture to build gasifiers elsewhere. India and Indonesia have substantial coal reserves and are initiating projects. Australia has canceled its carbon tax and is actively developing underground gasification. The U.K. could potentially use the underground coal gasification technology to utilize coal reserves in the North Sea. CO₂ could be re-injected into the dwindling oil reserves in the area and, thus, also boost oil output.

With this level of activity it is very likely that the coal gasification scrubber market will be more than $10 billion per year at a peak period a few years from now.

This includes only projects where there was an update during the month. There are thousands of projects in the database.

New power generation projects are tracked in two publications. Fossil and Nuclear Power Generation includes both market forecasts and project data. World Power Generation Projects has just the project data.

Project Title	First Entry Date	Location	Startup date
Ennore SEZ supercritical power plant-Tamil Nadu Generation and Distribution	8/1/2012	India	Unknown
Davao City CFB power plant-Aboitiz Power (Thermo South)/SMC Global Power	9/1/2010	Philippines	2015
Calaca CFB expansion-Trans-Asia Oil and Energy Dev./AC Holdings	8/1/2010	Philippines	2016
Vinh Hai 2-1,2	6/1/2010	Vietnam	2022
Balingian CFB power project-Sarawak Energy	6/1/2008	Malaysia	2018
Hinkley Point C-British Energy (now EDF) nuclear power plants	6/1/2007	UK	2025

Project Title	First Entry Date	Location	Startup date
Hagit CCGT Unit 9 - Israel Electric	5/9/2014	Israel	2015
Eshkol Unit 3 combined cycle conversion - Israel Electric	5/9/2014	Israel	2014
Alon Tavor CCGT Units 5 & 6 - Israel Electric	5/9/2014	Israel	2015
Be'er Tuviya CCGT - Israel Power Management	7/1/2013	Israel	2016
Israel Chemicals cogen plant	7/1/2012	Israel	2015
Haruvit CCGT - Dalia Power Energies	6/1/2011	Israel	2015
Eshkol Unit 4 CCGT - Israel Electric	11/1/2008	Israel	2014