April 2016 - Scrubber - Adorber Insights 64

McIlvaine is assisting scrubber/adsorber system suppliers and users with selection of valves for the tough applications

Valves used to control and isolate scrubber slurries and acids frequently are among the highest maintenance components of scrubber/adsorber systems. McIlvaine has already provided extensive analysis of gate and pinch valves for the limestone and calcium sulfate slurries utilized in flue gas desulfurization (FGD). We are now expanding to cover all the severe service applications. Ross Waters of CGIS is a world expert on severe service applications. We will be working with him to analyze the options for gas treatment as well as other processes.

One adsorber application involves molecular sieves. The fine zeolite particles leak from the sieve bed causing havoc on downstream valves. Molecular sieves need to be regenerated. Therefore, two units are required. One regenerates while the other absorbs. To switch between units a switching valve is used. The ethanol industry uses molecular sieves for dehydration of the alcohol. We learn from Ross that triple offset butterfly valves such as made by Tyco and Adams are commonly used for this application. However, there are issues relative to pressure drop minimization which do need to be addressed.

The application of switching valves for molecular sievers in the natural gas industry is particularly challenging. Historically, the rising stem ball valve (RSBV) has been used in this application. But the selection is complicated and depends to some extent on the severe conditions. Flowserve generalizes that this valve with its friction-free linear movement and mechanically energized metal seat has proven it to be the most suitable design for optimal long-term performance in severe applications. Cameron also recommends the rising stem ball valve. Cameron says it provides tight shutoff, withstands frequent cycling, and handles high temperatures better than other valve types in this service.

ValvTecnologies draws some different conclusions based on specific experiences. They say that more long-term success has been realized with metal seated quarter turn-ball valves and can cite installations where the rising stem ball valves have been replaced. ValvTechnologies’ zero-leakage carbide coated metal seated ball valves were selected and installed for a major operator’s sour gas plant in Monkman, British Columbia, replacing rising stem ball valves that lasted one year in service. These valves feature the same design proven since ValvTechnologies produced the seat supported fixed ball design.

The first installation in a molecular sieve lasted eight years after its initial installation, providing severe service zero-leakage isolation. Given a conservative one day shut-down per year to replace other designed valves in a plant processing 220mmcfd of saleable gas at $750,000 per day. That is $6.0M in improved efficiency over the course of eight years.

A discussion of severe service applications and an extensive analysis of the natural gas application is provided in a recent feature article by McIlvaine Company.

§ Hearing underway on OG&E Application for Coal Scrubbers at Sooner Power Plant

§ Public Forum held by EPA and Volta River Authority on Coal-fired Power Plant at Ekumfi, Ghana

§ Two Turbines for Coal-fired Power Plant in Punta Catalina, Bina, Santo Domingo, Dominican Republic

The 41F Utility E-Alert is issued weekly and covers the coal-fired projects, regulations and other information important to the suppliers. It is $950/yr. but is included in the $3020 42EI Utility Tracking System which has data on every plant and project plus networking directories and many other features.

The investment to remove noxious gases from exhaust stacks combined with the investment in treating process gases in 2017 will generate revenues of $35 billion for system suppliers. This is the conclusion reached by the McIlvaine Company by aggregating forecasts appearing in three of its market reports.

Gas Treatment Revenues Worldwide 2017
Application	$ Million
Power Plant Flue Gas Desulfurization	2,700
Power Plant and Industrial DeNO_x	8,500
Industrial Exhaust Noxious Gas Removal	7,800
Process Gas Treatment	16,000
Total	35,000

The market for power plant flue gas desulfurization (FGD) will be taking a temporary nose dive as China completes its retrofit program and activity in Europe and the U.S. is weak. On the other hand, China continues a massive coal-to-chemicals and syngas program which requires removal of acid gas, mercury, H₂O and certain other gases.

The DeNO_xmarket will be strong with a mix of purchases by power, cement, incineration and refinery operators.

The gas treatment capex for upstream oil and gas will be weak, but treatment investment by the petrochemical companies in the U.S., China and elsewhere will be strong.

Flow Control and Treatment Companies will benefit from a Digital Crystal Ball

The digital age has created the ability to make fortune telling a reality. The real life version of a crystal ball is the wealth of information available to predict markets, projects and identify decision makers. This information can be used to change the way flow control and treatment products are marketed.

Long range purchasing plans can be determined by an organized analysis of information which can be obtained directly from available documents or through individuals who have specific insights.

Minutes of municipality meetings documenting engineering study authorization

Consultant reports advising course of action for companies under public scrutiny

Permit applications for construction or upgrading

Submittals to the World Bank and other lending institutions

Five Year Plans for China and other countries

Recent and pending regulations which will impact the market

LinkedIn, blogs and various online groups with willing volunteers of information

Google and other search engines

The local salesman can make a call on a municipal wastewater treatment plant but would be unlikely to provide the same value gained from the directors meeting minutes which outline the failure of the competitor’s equipment and his proposal to fix it.

The power plant modification permit request which details the cost and performance of various options provides the needed insights on product and timing for a potential supplier.

One way suppliers take advantage of the availability of information is to purchase sales leads. Typically the company spends lots of money on these leads and not on market research. In one sense, the leads are the market research. In fact, published studies purport to link the number of sales leads to the size of future markets.

1. The large expenditure for sales leads draws funds away from critical market research.

2. Sales leads are not qualified. High margins and order conversion result from picking and choosing projects.

3. Since the sales lead is also being viewed by the competitors, there will be pricing pressure and lower success rates.

4. The timing of sales leads is often right if you are selling a commodity, but if you are selling based on your product differentiation, you are too late.

5. Many companies have distributors and representatives who are being paid to uncover leads. Sales lead expense is justified based on evaluating distributor performance rather than on boosting sales.

If you are selling a commodity, product and price is the basis of success then the sales lead route is probably still the best option. But, if you sell a product based on lowest cost of ownership and not initial price, then you should consider a whole new route using the digital crystal ball.

1. Forecasts can be provided for the precise product at the State and province level.

2. Project alerts provide the time to convince the customer to consider total cost of ownership and to issue bid specifications accordingly.

3. The large end users, OEMs, and AEs are identified. Since they purchase more than 50 percent of the flow control and treatment equipment, the focus on them is critical.

4. The opportunity to connect with the end user through white papers and webinars improves the margin and success potential.

5. The ability to demonstrate lowest cost of ownership is the secret to success in the global market.