May 2016 - Water Market Insights 188

Chemical manufacturing companies in the U.S., Canada and Mexico will spend over $440 million for high performance pumps in 2017. This is the latest forecast in the McIlvaine publication Pumps World Market.

What are high performance pumps? McIlvaine is using its own definition which includes both severe and critical service. Severe service is defined as an application where corrosion, erosion, pressure, or temperature is a concern. It also includes flow variables such as pumps which must run dry on occasion or are subject to rapid starts and stops.

Critical service entails impact on the product or the process. Product purity is critical for many chemical products. Contamination from pump components needs to be eliminated. In certain cases, damage to the product is a concern. The percentage of solids to be transported can be very high and create challenges for pump suppliers. The pump efficiency over the flow range is another factor which can be important.

There are no high performance pumps used in cooling where once-through water or cooling towers are utilized. Water intakes do not require high performance pumps (ultrapure water treatment is included in process separation). The biggest market is in process applications. End users and process OEMs in NAFTA will spend $330 million for pumps actually moving process fluids. Processes can be further categorized as follows:

The major uses of high performance pumps with process fluids are in separation and reaction. There are many chemical processes. Each has its unique requirements. Suppliers of high performance pumps who understand the chemical processes can achieve high profit margins in this industry segment.

Flow Control and Treatment Component Solutions provide a $500 billion Market

The market for components used in flow control and treatment will be $395 billion in 2017. However, component suppliers have the opportunity to increase sales by 20 percent and gross margins by 40 percent by providing solutions which give the customer the lowest total cost of ownership (LTCO). This is the latest prediction in N064 Air/Gas/Water/Fluid Treatment and Control: World Market.

Component sales in 2017 will be just under $400 billion. However, if component suppliers were to pursue the solutions approach, the potential expands to well over $500 billion. This is easier said than done. The component supplier needs to understand the customer needs. In turn, this means understanding the sub process, the process and the industry.

If the supplier thoroughly understands the customer needs, he can tailor his product to best fit those needs.

Let’s take an example. A typical valve controlling compressed air is a commodity product. One application involves pulsing air to clean filter bags. Pentair has become the world leader in this specialty niche by understanding the dust collection cleaning process and the variations needed for various different industries. Pentair supplies not only the valves but the headers and the controls to optimize the cleaning process.

Many industries need evaporation processes. Mechanical Vapor Recompression (MVR) is one sub process which minimizes total energy consumption. Colfax Howden has a number of blowers and fans to offer depending on the flow and temperature increase needed. However, it has also developed the ExVel^® fan specifically for this unique application. The impellers are suited to abrasive and corrosive conditions encountered as the steam is recompressed.

W.L. Gore has developed a number of innovative solutions based on process and industry knowledge. Most power plants have wet flue gas desulfurization (FGD) systems. There are new rules to reduce mercury. Wet FGD systems will remove most of this mercury with the right treatment chemicals. The conventional solution to remove the remainder of the mercury is to use activated carbon upstream. The problem is that any mercury removed by the carbon reduces the amount captured in the scrubber. W.L. Gore developed a module which can be installed after the scrubber and efficiently remove remaining mercury.

Flowserve is a major supplier of pumps for reverse osmosis (RO) processes. Desalination of seawater is a big potential market. High energy cost is one of the major factors reducing the market potential. Flowserve understood that a solution was energy recovery and acquired a company to provide it. (Calder DWEER™)

Most flow control and treatment equipment will be purchased in countries with less application experience than in the past. This means that international suppliers have a great opportunity to develop and sell solutions to ensure that the customer selects the lowest total cost of ownership (LTCO). For more information, click on: N064 Air/Gas/Water/Fluid Treatment and Control: World Market.

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

· Ghana to start building China funded $1.5 Billion Coal-fired Power Plant in 2017

· 500 MW Expansion for Ekibastuz-2 Power Station in Ekibastuz, Kazakhstan

· Orascom proposes Ultrasupercritical Hamarawein Port Power Station in Egypt

· Shenhua Group completes upgrades to Coal-fired Power Plants in the Beijing-Tianjin-Hebei Region

· Asian Development Bank providing $900 Million Loan to Pakistan for Coal-fired Power Plant at Jamshoro

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.

McIlvaine conducts periodic webinars which are in a discussion format and are free of charge to all participants. The displayed material and recordings are free to purchasers of the products and services and by subscription to others.

Format: 50-90 minute recorded discussion using McIlvaine display material. The session will be free of charge to all participants but registration is required.

Approach: There are two types of webinars. One is focused on Markets and directed to suppliers. The other is focused on aiding purchasers make the best Decisions relative to purchases of flow control and treatment equipment and services.

Markets HTH
The general overviews of the market including size and major variables will be discussed with heavy emphasis on technology and regulatory drivers. The presentation will be based on the latest information appearing in McIlvaine multi-client reports. Questions and views from both subscribers and non-subscribers are encouraged.

Decisions HTH
McIlvaine has been publishing information systems on pollution control since 1974. Each subject is organized by the pollutant control technology e.g. fabric filter, scrubber, etc. There are search capabilities to retrieve information on any application. The newest addition has been slide deck systems displaying the issues and options relative to a specific applications. Coal-fired power, cement, steel and waste combustion decision slide decks are continually updated.

The continually updated slide decks are displayed on the applicable decision system. It is recommended that participants view the slide deck in advance of the session and be prepared with questions and views.

Value to purchasers and specifiers: Your questions and interests will be prioritized in the discussion. You will get a monthly newsletter and have continuing access to the system and multiple ways to interface in the future along with a networking directory of suppliers.

Value to Suppliers: You have the opportunity to provide data to be considered at no charge. If you are also a subscriber you will see the summaries in advance and be able to shed light on issues and options not properly covered in the slide deck. If you are a subscriber you will receive the monthly newsletter and continuing yearly access to the system including networking directories.

44I Power Plant Air Quality Decisions includes 1ABC, 3ABC, 4ABC, 9ABC decision services but not 2ABC. So those with multiple technologies and at least partial focus on power will find this combination most cost effective.

Applicable Services for Hot Topic Hours**
Pollutant	Industry	Fabric Filter (1ABC)	Scrubber (2ABC)	Precipitator (4ABC)	FGD & DeNOx (3ABC)	Air Pollution Monitoring (9ABC)	Gas Turbine Decisions
Mercury February 11, 2016	Coal				X	X
	WTE	X	X			X
	Sewage		X	X		X
	Cement	X				X
	Natural Gas*
DeNOx March 24, 2016	Coal				X	X
	Incineration				X	X
	Steel				X	X
	Cement				X	X
	Diesel*
	Gas Turbine				X		X
Hot Gas Filtration	Coal	X	X	X		X
	WTE	X	X	X		X
	Cement	X	X	X		X
	Steel	X	X	X		X
	Incineration	X	X	X		X
	Coal Gas	X	X			X
	GT Intake						X
FGD and Acid Gas June 16, 2016	Coal				X	X
	Sewage		X			X
	WTE		X			X
	Cement		X			X
	Steel		X			X

Dates for the next 6 meetings are firm; the others will be held in sequence at approximately two week intervals. Unforeseen developments could dictate the insertion of new subjects.

DATE	SUBJECT
June 16, 2016 *Decisions*	FGD and Acid Gas Separation - Issue and options for SO2 and other acid gas separation from coal fired power, cement, steel, and waste incineration plants. Click Here to Register
TBA *Markets*	Desalination - Thermal vs. Membrane; energy recovery, pump, valve, compressor and chemicals options; power/desalination combinations.
TBA *Markets*	Oil, Gas, Refining - Supply and demand; impact on flow control and treatment products; regional impacts e.g. subsea in North Atlantic vs. shale in the US vs. Oil Sands in Canada.
TBA *Markets*	Food - Analysis of 12 separate applications within food and beverage with analysis of valve, pump, compressor, filter, analyzer and chemical options; impact of new technologies such as forward osmosis.
TBA *Markets*	Municipal Wastewater - Quality of pumps, valves, filters, and analyzers in Chinese and Asian plants; new pollutant challenges; water purification for reuse.
TBA *Markets*	Mobile Emissions - Reduction in CO, VOCs, and particulate in fuels, oils, and air used in on and off road vehicles; impact of RDE and failure of NO_x traps and the crisis in Europe created by the focus on diesels.

Process	High Performance Pump Needs
Storage	low
Metering	low
Measurement	low
Heat/Cool	medium
Separation	high
Dehydration	high
Reaction/Absorption	high
Evaporation	high
Disinfection	medium

Function	Component Examples	2017 World Revenues $ Billions
Flow Control Liquids	Pumps, Valves	160
Flow Control Air/Gases	Compressors, Fans, Dampers	45
Filtration and Separation of Liquids	Filters, Centrifuges, Clarifiers, Cross-flow Membranes	50
Oxidation and Destruction Treatment for Liquids	Biological and Chemical Treatment including Digesters, Aerators, Treatment Chemicals, etc.	60
Indoor Air and Stack Gas Treatment	Filters, Scrubbers, Catalytic Reactors, Nozzles	80
Total		395

The Role of Components in Solutions
Industry
	Process
		Sub Process
			Solutions
				The LTCO Valve Product