Gas Turbine Opportunities for Valve Companies Shaped by IIoT
There are many new gas turbine combined cycle power plants (GTCC) under
construction and in operation. This represents a market potential of $3.5
billion/yr. for valve suppliers. However, the Industrial Internet of Things (IIoT)
is creating a metamorphosis in the route to market and profitability. This
market is being continually assessed in N028 Industrial Valves: World Market.
Each gas turbine project is tracked in 59EI Gas Turbine and Reciprocating Engine
Supplier Program.
Smart valves provide a route to increase revenue and profitability. Both on/off
and control valves have “smart” capabilities. An on/off valve can be supplied
with a controller which is intelligent, having digital communication and a
microprocessor capable of on-board diagnostics. The controller can detect
deteriorating valve performance. Diagnostics also include high and low
temperature monitoring. The on/off valve diagnostics make it possible to more
accurately predict the need for maintenance based on how hard the valve is
working and how it is performing.
Control valves are critical components in plant automation. Their intelligence
can be leveraged to maximize plant improvements. Emerson is incorporating smart
valve technology to provide a control Valve Condition Monitoring diagnostic
service performed by certified Fisher valve and instrument product experts
focused on providing predictive analysis of a facility’s control valves. Its
purpose is to identify potential failures and avoid them before they cause
unsafe operating conditions and/or unplanned downtime.
Emerson has partnered with software company, Seeq, to improve the data
visualization tools used to predict future valve problems. Seeq expertise has
helped Fisher Valve Division build a collaborative environment connecting
customers with local Fisher service experts and global valve experts. This
environment enables data from multiple sources to be visualized and aggregated.
It allows authorized people located around the world to look and work on the
same data for predictive maintenance and operational improvements.
This initiative is part of the IIoT metamorphosis. Most valve manufacturers do
not have the infrastructure to be IIoT leaders. So, they need to identify and
work with all the relevant participants.
End Users
Large end users are creating fleetwide monitoring systems. Southern Company
operates over 280 power generation units at 73 power plants including gas
turbine, combined cycle, steam (coal), hydro and solar. Southern Company
implemented the first phase of their fleetwide monitoring and diagnostics (M&D)
center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s
efforts promise to result in maintenance savings and availability improvements,
while increasing equipment health visibility and optimizing logistics of
maintenance.
The one hundred largest operators of gas turbines around the world account for
the majority of valve purchases. Therefore, working with them should be a high
priority.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the
health of rotating parts such as turbines. However, this is being expanded. MHPS
just opened a remote monitoring center in the Philippines. It is monitoring the
balance of plant in addition to the turbines.
Process Providers
Suppliers of heat recovery steam generators, ultrapure water, emission controls
and water treatment are also purchasers or influencers relative to valves. Nalco
has a water quality remote monitoring center which operates around the clock.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions
utilizing the very same ABB DCS platform that controls the rest of the plant.
The typical gas turbine functions implemented include fuel control, startup
sequence, speed-load-temperature closed loop control, overspeed protection,
anti-surge protection, generator protection, auxiliary control, condition
monitoring, auto-synchronization, excitation, frequency control, etc.
Yokogawa has various programs including one which monitors the wastewater from
the plant. The automation supplier can be working directly with the end user and
not necessarily through the process supplier.
Subject Matter Experts
When problems arise which cannot be handled by the dedicated supplier personnel,
it is necessary to turn to subject matter experts. A valve problem for one
supplier can turn into an opportunity for another as a result of the
recommendations of a subject matter expert. McIlvaine is encouraging individuals
to focus on niches and become experts on very narrow subjects.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background
data which can be opportunistically displayed to help solve valve problems as
they occur.
The gathering and organization of this data for use in the software system is a
major challenge. McIlvaine is providing this data in its valve related services
but also in systems structured for a single utility. The beta site is for
Berkshire Hathaway Energy (BHE) which operates hundreds of gas turbine and other
power plants.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by
third parties. The developments in remote monitoring are making it more
attractive to sub contract to a company specializing in O&M. These providers
include specialized service companies such as Wood Group and EthosEnergy, power
plant operators such as Uniper and RWE who are leveraging their experience to
help others and the plant suppliers such as Siemens and GE who have
build/own/operate (BOO) contracts.
Valve manufacturers have an opportunity in an expanding gas turbine market to
take advantage of the IIoT driven changes and to increase not only revenues but
gross margins and profits as a percent of those revenues. This will require
direct high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine
Supplier Program
For more information, click on N028 Industrial Valves: World Market
IIoT is Creating New Market Paths to the $400 Million Gas Turbine and
Reciprocating Engine Liquid Cartridge Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way
liquid cartridges for gas turbine combined cycle systems and reciprocating
engines are purchased. The impact of IIoT is being continually assessed in 59EI
Gas Turbine and Reciprocating Engine Supplier Program. The markets for
cartridges for these plants are analyzed in N024 Cartridge Filters: World
Market.
The inventory of existing gas turbine plants is growing at six percent per year
and in the next few years the base will grow to two million MW. There are 30,000
individual units. There are hundreds of thousands of stationary engines using
gas or oil for fuel. These units routinely require service, replacement of
cartridges used for fuel oil, hydraulic fluids, coolants and lubrication.
Additional cartridges are used in water intakes, cooling and condensate for heat
recovery steam generators. Some cartridges are also used in wastewater
treatment. This includes direct filtration of wastewater but also filtration of
chemical solutions used in the wastewater treatment processes. The market for
replacement filters and services is $400 million per year and will grow by more
than six percent per year.
IIoT provides remote delivery of comprehensive information about the operation
and health of cartridges. This data can be analyzed to identify problems and
will create opportunities for the sale of better filters, media, coatings and
smarter filters to replace the existing ones. IIoT is creating new channels to
market in contrast to the sale of products directly to a single end user.
End Users
Large end users are creating fleetwide purchasing and monitoring systems.
Southern Company operates over 280 power generation units at 73 power plants
including gas turbine, combined cycle, steam (coal), hydro and solar. Southern
Company implemented the first phase of their fleetwide monitoring and
diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s
efforts promise to result in maintenance savings and availability improvements,
while increasing equipment health visibility and optimizing logistics of
maintenance.
The one hundred largest operators of gas turbines around the world account for
the majority of purchases. Therefore, working with them should be a high
priority. Each of these plants is identified in Gas Turbine and Reciprocating
Engine Supplier Program.
Filter manufacturers have the opportunity to offer programs to service and
replace all the filters in the fleet. With IIoT cost effective maintenance can
reduce costs for the end user while increasing margins for the supplier. There
are many thousands of filters in a large fleet. The cost of purchase and storing
small filters is much higher for an individual user than it is for a company
supplying all filters. Some of the toughest applications for filters are in
remote areas or on floating platforms in oceans. Remote monitoring and central
supply is particularly advantageous for these applications.
Gas Turbine and Engine Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the
health of rotating parts such as turbines. However, this is being expanded. MHPS
just opened a remote monitoring center in the Philippines. It is monitoring the
balance of plant in addition to the turbines. A filter supplier offering remote
filter monitoring for all units can team with a turbine plant supplier for joint
analysis of the operating data.
Process Providers
Suppliers of lubrication systems or plant compressed air are also purchasers or
influencers relative to products. A plant air compressor supplier can share
remote data with the filter supplier. Since lubrication fluid quality,
temperature and dirt on the filter are all parameters in determining pressure
drop there is need for joint application of expertise.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions
utilizing the very same ABB DCS platform that controls the rest of the plant.
The typical gas turbine functions implemented include fuel control, startup
sequence, speed-load-temperature closed loop control, overspeed protection,
anti-surge protection, generator protection, auxiliary control, condition
monitoring, auto-synchronization, excitation, frequency control, etc. Parameters
such as the pressure drop across the filter are important. Both the filter
supplier and the automation supplier can share relevant data.
Subject Matter Experts
When problems arise, which cannot be handled by the dedicated supplier
personnel, it is necessary to turn to subject matter experts. A filter problem
for one supplier can turn into an opportunity for another because of the
recommendations of a subject matter expert. Suppliers need to encourage the
participation of subject matter experts who understand the product and can
provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background
data which can be opportunistically displayed to help solve problems as they
occur.
The gathering and organization of this data for use in the software system is a
major challenge. McIlvaine is providing this data in its cartridge and gas
turbine related services but also in systems structured for a single utility.
The beta site is for Berkshire Hathaway Energy (BHE) which operates hundreds of
gas turbine and other power plants. It also operates 71 compressor stations. So,
it purchases many thousands of cartridge filters per year. The system has
information such as the performance of Cuno string wound filters in one
condensate system and the performance of Pall filters in another where the
string wound filters were replaced with more efficient ones. This human
generated data can be utilized with the machine generated data to determine
where more efficient and expensive filters should be installed.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by
third parties. The developments in remote monitoring are making it more
attractive to sub contract to a company specializing in O&M. These providers
include specialized service companies such as Wood Group and EthosEnergy, power
plant operators such as Uniper and RWE who are leveraging their experience to
help others, and the plant suppliers such as Siemens and GE who have
build/own/operate (BOO) contracts.
Cartridge filter suppliers have an opportunity in an expanding gas turbine
market to take advantage of the IIoT driven changes and to increase not only
revenues but gross margins and profits as a percent of those revenues. This will
require direct high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine
Supplier Program. For more information, click on N024 Cartridge Filters: World
Market
IIoT is Creating New Market Paths to the $1 Billion Gas Turbine Plant Pump
Repair, Replace and Service Market
The Industrial Internet of Things (IIoT) is a powerful new force shaping the way
pumps for gas turbines are purchased. The impact of IIoT is being continually
assessed in 59EI Gas Turbine and Reciprocating Engine Supplier Program. The
markets for pumps for these plants is analyzed in N019 Pumps World Market.
The inventory of existing gas turbine plants is growing at six percent per year
and in the next few years the base will grow to two million MW. There are 30,000
individual units which routinely require service, replacement or repair of pumps
used for intake water, boiler feedwater, condensate, cooling, turbine inlet
water injection, reagent delivery, treatment chemical delivery, lubricant and
hydraulic fluid circulation. The market for pump replacement products, repair
and services is $1 billion per year and will grow by more than six percent per
year.
IIoT provides remote delivery of comprehensive information about the operation
and health of pumps. This data can be analyzed to identify problems and will
create opportunities for the sale of better pumps, pump materials and smarter
pumps to replace the existing ones. IIoT is creating new channels to market in
contrast to the sale of products directly to a single end user.
End Users
Large end users are creating fleetwide purchasing and monitoring systems.
Southern Company operates over 280 power generation units at 73 power plants
including gas turbine, combined cycle, steam (coal), hydro and solar. Southern
Company implemented the first phase of their fleetwide monitoring and
diagnostics (M&D) center in 2007.
Duke Energy is growing its fleetwide monitoring and diagnostics center. Duke’s
efforts promise to result in maintenance savings and availability improvements,
while increasing equipment health visibility and optimizing logistics of
maintenance.
The one hundred largest operators of gas turbines around the world account for
the majority of purchases. Therefore, working with them should be a high
priority. Each of these plants is identified in Gas Turbine and Reciprocating
Engine Supplier Program.
Gas Turbine Plant Providers
Gas turbine suppliers have remote monitoring centers primarily focused on the
health of rotating parts such as turbines. However, this is being expanded. MHPS
just opened a remote monitoring center in the Philippines. It is monitoring the
balance of plant in addition to the turbines.
Process Providers
Suppliers of heat recovery steam generators, ultrapure water, emission controls
and water treatment are also purchasers or influencers relative to products.
Nalco has a water quality remote monitoring center which operates around the
clock.
Automation Suppliers
ABB can provide all required gas turbine control and protection functions
utilizing the very same ABB DCS platform that controls the rest of the plant.
The typical gas turbine functions implemented include fuel control, startup
sequence, speed-load-temperature closed loop control, overspeed protection,
anti-surge protection, generator protection, auxiliary control, condition
monitoring, auto-synchronization, excitation, frequency control, etc.
Yokogawa has various programs including one which monitors the wastewater from
the plant. The automation supplier can be working directly with the end user and
not necessarily through the process supplier.
Subject Matter Experts
When problems arise, which cannot be handled by the dedicated supplier
personnel, it is necessary to turn to subject matter experts. A pump problem for
one supplier can turn into an opportunity for another as a result of the
recommendations of a subject matter expert. Pump suppliers need to encourage the
participation of subject matter experts who understand the product and can
provide lowest total cost of ownership advice.
Knowledge System Providers
Emerson’s use of Seek software allows incorporation of insights and background
data which can be opportunistically displayed to help solve problems as they
occur.
The gathering and organization of this data for use in the software system is a
major challenge. McIlvaine is providing this data in its pump and gas turbine
related services but also in systems structured for a single utility. The beta
site is for Berkshire Hathaway Energy (BHE) which operates hundreds of gas
turbine and other power plants.
O&M Third Party Providers
Many gas turbine combined cycle power plants are operated and maintained by
third parties. The developments in remote monitoring are making it more
attractive to sub contract to a company specializing in O&M. These providers
include specialized service companies such as Wood Group and EthosEnergy, power
plant operators such as Uniper and RWE who are leveraging their experience to
help others, and the plant suppliers such as Siemens and GE who have
build/own/operate (BOO) contracts.
Pump suppliers have an opportunity in an expanding gas turbine market to take
advantage of the IIoT driven changes and to increase not only revenues but gross
margins and profits as a percent of those revenues. This will require direct
high level communication with several types of organizations.
For more information, click on 59EI Gas Turbine and Reciprocating Engine
Supplier Program. For more information, click on N019 Pumps World Market.
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis
Here are some Headlines from the Utility E-Alert
UTILITY E-ALERT
#1304 – January 6, 2017
Table of Contents
COAL – US
• Ash Pond leaks this Week at Duke Energy Rogers Coal-fired Power Plant
• Coal-fired Power Plants will continue to close despite change at EPA
• Coal-fired Power Plant's Owners weigh Options that include closure
• Washington State has blocked Plans for the Nation’s biggest Coal Export
Terminal
• Ameren will install New Ambient SO2 Monitors
• EPA analysis shows Wet FGD is most Cost-effective Route to meet Federal
Implementation Plan
COAL – WORLD
• China fines 605 Power Plants 328 Million Yuan for Environmental breaches
• BHEL commissions Second 600 MW Thermal Unit in Telangana
• Delay in approval of Meralco Projects to hike construction and Operational
Costs
• GE Power India Ltd awarded Contract worth Rs. 271.1 Crores
• Aboitiz Power cleared to acquire Stakes in in GNPower Thermal Power Plants
• French Bank backs out of financing Indonesian Coal-fired Power Plant
• Swahili Settlement in Lamu, East Africa protesting against Kenyan Government’s
plans for a Coal-fired Power Plant
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.
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You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5.
Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com