Subject: Sales of Liquid Cartridges will reach $6 billion

Here are some of the coal-fired boiler projects which we are tracking on a weekly basis in the Utility Environmental Upgrade Tracking System.

2006 FGD Projects from McIlvaine Tracking System

Springfield, MO Considering Different Coal-fired Power Plant Scenarios

Black & Veatch is preparing a report for Springfield (MO) City Utilities (CU) on possible power plant construction. One option would have CU build 275 MW "Southwest II," near its existing Southwest Power Station. The other proposal would have CU partner with Empire District Electric and Tenaska Energy in building a larger (550 MW coal-fired) power plant. Possible sites are Aurora, Lamar, and La Russell in MO; Osego, KS; and a fifth site the company hasn't yet identified. Either way, Springfield voters can expect to see a 2004 bond election to finance a new plant. CU is also testing co-firing chicken litter with coal.

MA Dept. of Environmental Protection Holding Hearings on Mercury Reduction

Massachusetts' Department of Environmental Protection (DEP) is holding public hearings to discuss proposed reductions of mercury emissions from coal burning power plants such as Brayton Point and Somerset. Under the DEP's plan to reduce mercury emissions, the state's oldest power plants will be required to control 85 percent of the mercury contained in combusted coal by October 1, 2006, and 95 percent by October 1, 2012.

Steag to Move Ahead with 1,500 MW Plant in New Mexico

Steag Power LLC told Reuters the company was likely to file plans with regulators in early 2004 to build the 1,500 MW coal-fired plant in the Four Corners region of New Mexico.

Iowa Boiler to Co-fire Cereal Residue

The University of Iowa's power plant can keep burning leftovers from the Quaker Oats cereal plant in Cedar Rapids. The EPA approved a waiver requested by Governor Tom Vilsack of the agency's permit review. Since January, trucks have been delivering tons of oat hulls to be used as fuel at the power plant. Vilsack said the project will reduce the use of coal by almost 30,000 tons a year and save the university more than $500,000 in energy costs every year. The EPA's approval will allow the project to continue on a permanent basis.

425 MW Manistee Coal-fired Plant Receives Local Support

City manager Mitchell Deisch supports a 425 MW, coal-burning power plant proposed by Manistee Salt Works/Tondu Corporation for the former General Chemical site on the shores of Manistee Lake, Michigan. "We live in northern Michigan, where there is phenomenal natural beauty all around us," he said. "But we need more than the natural beauty." Manistee's planning commission held public hearings on a special land-use permit for the plant.

Bid Process Open for Mexican Power Plant

CFE, the Mexican state power company, is calling for EPC bids for construction of the new 700 MW Pacifico coal-fired power plant project. The proposed facility, once known as Petacalco 2, will be placed next to CFE's 2,100 MW plant in Guerrero state. Bidding rules are available from CFE now through February 5, 2004. Operation of the Pacifico plant is slated for February 2007.

Construction Contract Signed for 2 x 1,000 MW Huaneng Yuhuan Power Plant

Huaneng Power International, Inc. signed main equipment procurement contracts with Harbin Boiler Co. Ltd., Shanghai Turbine Company, Ltd. and Shanghai Turbine Generator Co., Ltd. for the two 1,000 MW ultra-supercritical coal-fired generating units for the Huaneng Yuhuan Power Plant in China. The two 1,000 MW units are expected to commence operation in the second half of 2007 and the first half of 2008 and will be connected to the East China Power Grid.

Third Quarter NO_x Data Now Posted in Tracking System

We have added third quarter 2003 data to the Utility Plans database which is part of the tracking system. This includes operating hours, inlet BTU, NO_x tons emitted and lbs NO_x/MMBtu. This data is of critical importance because a number of new coal-fired power plants are being permitted. There is pressure to bring the permitted levels below 0.08 lbs/MMBtu of NO_x. Temperature swings negatively affect SCR performance. Therefore reduction efficiency will vary as well.

For more information on the Utility Environmental Upgrade Tracking System click on http://www.mcilvainecompany.com/utilitytracking.htm

In World Power Generation Projects http://www.mcilvainecompany.com/energy.html#40A you can click on any year and generate hyperlinks to power plant projects which will start up at that time. Here are some of the 2008 startups.

U.S.

                        Fuel                                        Project Name and State                                 Size (MW)

Worldwide

             Fuel                                  Project Name and Country                                            Size (MW)

Huge Power Plant Scrubber Markets in the U.S. and China

Over the next 15 years the U.S. and China will purchase flue gas desulfurization (scrubber) systems with a value of over $60 billion. China will actually purchase more equipment, but since the cost of installation in China will be only 50 percent of that in the U.S., the investment will be $22.5 billion in China vs. $37.5 billion in the U.S. Between these two countries there will be a steady flow of orders which will average $4 billion/yr. These predictions, along with those for other countries, are continuously updated in the online McIlvaine report, World FGD Markets. www.mcilvainecompany.com/air.html#no27

NO_x Control Market to Climb to New Peak

Record purchases for gas turbines and coal-fired plants in the U.S. resulted in world sales of selective catalytic reduction (SCR) systems of over $4 billion in 2002.  This year sales will be down by 20 percent but will still be the second highest ever. In NO_x Control: World Markets, http://www.mcilvainecompany.com/air.html#N035  McIlvaine Company points out that, a market that was measured in hundreds of millions of dollars prior to 2000, is now measured in billions. The equipment market will not soon reach the 2002 peak again but in the next decade will nevertheless net $25 billion in sales.

The market for catalysts is very bright in that this is a consumable product.  The 2002 peak for catalyst sales will be exceeded in coming years as replacement catalyst becomes a big segment of the market. Whereas the U.S. has been a small market compared to Asia and Europe in the 1980s and 1990s, now the U.S. market is equal to the other regions combined.

Fabric Filter Revenues to Top $4.5 Billion In 2007

Sales of fabric filter systems will exceed $4.5 billion in 2007 up from $3.9 billion in 2003 according to the McIlvaine Company in its online continually updated Fabric Filters and Elements: World Markets http://www.mcilvainecompany.com/air.html#N021. Fabric filters are also called baghouses or dust collectors. They are used in a wide variety of applications from grain dust capture to purification of steel mill exhausts.  However the biggest boost to the industry is its new popularity for removing flyash and mercury from power plants.

Sales to power plants will more than double over the 2000-2007 timeframe as power plants switch from electrostatic precipitators to fabric filters. Most coal-fired power plants built in the U.S. in the future will utilize fabric filters for flyash capture. Many old and new plants will also use fabric filters to collect gypsum in processes designed to reduce SO₂ emissions. By 2007, the annual market for fabric filter systems for this segment will exceed $1 billion/year.

Market for Air Pollution Monitoring and Testing Revenues

Of $1.6 Billion Predicted for 2006

The world market for monitoring and testing of air pollutants will exceed $1.6 billion/yr by 2006 up from $1.2 billion in 2002. This is one of the predictions in the continually updated online report Air Pollution Monitoring and Sampling World Markets http://www.mcilvainecompany.com/air.html#No31. The forecasted revenues include continuous monitoring systems, intermittent stack testing services, and the hardware needed to perform these tests. The forecast also includes supplies such as protocol gases and filter paper. Applications range from the yearly test of a bakery to determine ethanol emissions at a cost of $5,000 to the ownership and operation of a multi-pollutant continuous monitoring system in a large waste to energy plant where the acquisition cost of the system is $900,000, not including any service or supplies