NEWS RELEASE FEBRUARY 2004
Power and Waste Incineration Growth Will Drive Fabric Filter Industry to New Heights
The market for fabric filter systems will rise to $4.5 billion in 2007 up from $4 billion in 2004. Sales of bags (elements) will rise from $900 million this year to over $1 billion in 2007. While most heavy industry in the U.S. will be reducing purchases, the power plants will more than make up for this reduction. In Asia the market in virtually every sector will grow substantially. These conclusions are reported in the latest updates to the online Fabric Filters and Elements: World Markets report from the McIlvaine Company.
The biggest growth factor for the industry is the switch from electrostatic precipitators to fabric filters for the capture of fly ash from coal-fired boilers. New legislation in the U.S. limiting fine particulate matter will provide the opportunity to sell fabric filters valued at more than $5 billion to replace inefficient existing precipitators. Furthermore, proposed rules to limit mercury could also result in additional fabric filter purchases by power plants.
With the rise in natural gas prices, the construction of many new coal-fired boilers is predicted by McIlvaine. Many of these plants will incorporate fabric filters for particulate control. Wisconsin Energy will be ordering fabric filters for their new Elm Road plant this month. The flow rate for the 1200 MW plant is over 3 million cfm. The fabric filter system cost will be close to $60 million. More than 100 new coal-fired plants of this size will be needed to meet electricity needs over the next decade.
Waste incineration is another growth area for fabric filters. China is embarking on a major program and has already allocated more than $2 billion for waste-to-energy plants. The market in Europe is growing due to more stringent regulations relative to land filling waste. The big boom in Japan is over, but the rest of Asia represents a big market. The U.S. has opted for land fills over incineration, but this attitude is changing. Honolulu, Hawaii and Harrisburg, PA are building waste-to-energy plants.
Cement is the third growth market due to the switching from precipitators to fabric filters for kiln exhausts. China now manufactures more than 40 percent of the world’s cement. Other Asian countries are expanding their cement production capabilities. Historically fabric filters were used for the smaller transfer points, but precipitators were used for the large kilns and clinker coolers. Now fabric filters are often selected for all applications.
The market for fabrics is growing due to the greater installed base and the biannual replacement needs. It is also growing because of the need for higher performance materials. Coal-fired power plants require fabrics which will operate at temperatures above 300oF normally and will withstand excursions of more than 400oF.
Another design challenge for fabric suppliers is the use of the filters in the desulfurization process. A lime slurry is introduced in the hot gas stream and reacts with sulfur dioxide (SO2) to form gypsum particles. A downstream fabric filter captures these particles. In some cases, the same filter captures both the fly ash and the gypsum. This greatly increases the load on the fabrics. It also increases the number of required cleaning cycles.
The equipment industry is split into two major segments. One includes the smaller modular collectors; the other includes the larger field erected or custom designed units. Donaldson dominates the small modular collector segment. The custom segment is highly splintered with no dominant players. Financial problems have weakened the positions of the former leaders and opened the market for new leadership. At this point it is unclear how this will play out.
One clear trend is the growing strength of service and bag suppliers. BHA has become the most successful company after Donaldson in the market. They have expanded into collector rebuilds as well as the supply of bags.
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