Subject: Big Market Ahead For New Wet Precipitators and Upgrading Dry Precipitators
A number of factors are increasing the market for suppliers of new electrostatic precipitators and replacement parts. In its online report Electrostatic Precipitators: World Markets the McIlvaine Company forecasts that over $3 billion will be spent just to upgrade the antiquated fleet of existing electrostatic precipitators in the U.S. Furthermore, China will spend $300 million/yr for new precipitators as it builds new power plants at an unprecedented rate. Another bright spot is the market for wet electrostatic precipitators for new power plants. McIlvaine concludes that the combined opportunities are more than $2 billion per year over the next 10 years.
The U.S. has the largest precipitator capacity of any country in the world. However, over the next 10 years, China will take over the top spot. Nevertheless, the investments in the U.S. will increase substantially. The main reason is the U.S. will be switching back to coal for new power generation. This will first translate into precipitator upgrades at existing coal-fired plants. The reluctance to spend money due to possible retirement of older plants has been replaced with the desire to modify these plants to generate the maximum amount of electricity.
The opportunity for sale of wet precipitators will be significant. The need to remove acid mist expands when power plants install both SCR and scrubbers. If just the plants targeted in the Interstate Air Quality Rule utilized wet precipitators to solve their acid mist problems, the investment would be in excess of $3 billion.
The report identifies one major variable which could make the market much larger. There is presently no precise way to determine particulate emissions on a weight basis accurately and continuously. There are, however, some breakthroughs which will make this possible in the near future. Once this monitoring equipment is available, it will be learned that many power plant precipitators are emitting far more particulate per year than is allowed in their Title V permits. This will result in many upgrades.
The biggest potential for precipitator suppliers is participation in the maintenance and operation of existing precipitators. The annual cost for owning and operating the world’s precipitators will exceed $14 billion in 2004. Suppliers can generate revenue from remote monitoring optimization of precipitator operations and from supplying the parts and services necessary to maintain desired efficiencies. McIlvaine predicts that once particulate emissions can be tracked in tons per year, EPA will set up a cap and trade system for particulate similar to those now used for NOx and SO2 emissions. This will greatly increase the need to achieve high efficiency continuously.
The roles of suppliers to the industry are undergoing substantial change. Financial problems have weakened the hold on the industry by the traditional suppliers. BHA, which primarily is in the renovation and repair and not new equipment business, has emerged as the most successful company in the precipitator business. The expanded role for wet precipitators promises to bring in new entries. Hybrid precipitators which combine the features of fabric filters and traditional precipitators are also among the developing technologies which will bring in new supplier companies.
For more information on Electrostatic Precipitators: World Markets click on: http://www.mcilvainecompany.com/air.html#N018 .
Bob McIlvaine
847-784-0012