Utility CO2 Mitigation Markets Will Grow At Double-Digit Rates
Operators of coal-fired power plants are committing billions of dollars in
expenditures to reduce the quantities of CO2 per kilowatt of power produced.
These expenditures are accelerating at double-digit rates. Forecasts of the
revenues for CO2 capture, efficiency improvements and research are provided in
the new Utility CO2 Mitigation Markets published online by the McIlvaine
Company.
The near-term market will be CO2 capture and use in enhanced oil recovery.
Longer term the challenge will be to reduce the capture costs for more
widespread use. Europe is moving forward, also there is strengthened resolve to
reduce CO2 emissions in the two largest emtting countries, the U.S. and China.
There is a big potential for cost savings. Some of this potential lies in
improved components. One example is a more efficient CO2 compressor. There is a
considerable opportunity to improve CO2 capture processes by use of reagents
with improved performance compared to the traditional amines.
The use of biomass and other fuels to replace up to 20 percent of the coal is
also a potential which is attracting capital investment. The co-location of
cellulosic ethanol plants at coal sites and other ways to make use of the low
pressure steam generated by coal plants is also a promising potential.
The large commitment of research and development funds by many countries is
creating a sizable revenue stream independent of the commercial revenues.
Markets for removal of pollutants will be expanded. Existing systems to remove
SO2, NOx and particulate from the flue gas do not achieve the low contaminant
levels needed for CO2 absorption. As a result, existing plants installing CO2
capture systems will also have to upgrade the existing pollution control
equipment. The compressed CO2 will contain some residual contaminants. It too
must be purified.
CO2 capture represents a very sizable capital investment. There are large
vessels needed for CO2 separation and regeneration of the absorbent. There is
high pressure piping and process equipment needed for CO2 compression. There is
substantial piping required for CO2 transfer and sequestration. The market for
instrumentation and controls is substantial as reflected by the system
complexity. Hundreds of valves and pumps are also needed in each process. There
will be a significant market for chemicals.
Most of the large boiler companies are going to be major players in this growing
market. However, because of the innovation potential there is a good opportunity
for the smaller companies.
For more information on Utility CO2 Mitigation Markets, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=57
and go to Market Reports.
Bob McIlvaine
President
847 784 0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com