NEWS RELEASE                                   JANUARY 2010

Utility CO₂ Mitigation Markets Will Grow At Double-Digit Rates

Operators of coal-fired power plants are committing billions of dollars in expenditures to reduce the quantities of CO₂ per kilowatt of power produced.  These expenditures are accelerating at double-digit rates.  Forecasts of the revenues for CO₂ capture, efficiency improvements and research are provided in the new Utility CO₂ Mitigation Markets published online by the McIlvaine Company.

The near-term market will be CO₂ capture and use in enhanced oil recovery.  Longer term the challenge will be to reduce the capture costs for more widespread use.  Europe is moving forward, also there is strengthened resolve to reduce CO₂ emissions in the two largest emtting countries, the U.S. and China.

There is a big potential for cost savings.  Some of this potential lies in improved components.  One example is a more efficient CO₂ compressor.  There is a considerable opportunity to improve CO₂ capture processes by use of reagents with improved performance compared to the traditional amines.

The use of biomass and other fuels to replace up to 20 percent of the coal is also a potential which is attracting capital investment.  The co-location of cellulosic ethanol plants at coal sites and other ways to make use of the low pressure steam generated by coal plants is also a promising potential.

The large commitment of research and development funds by many countries is creating a sizable revenue stream independent of the commercial revenues.

Markets for removal of pollutants will be expanded.  Existing systems to remove SO₂, NO_x and particulate from the flue gas do not achieve the low contaminant levels needed for CO₂ absorption.  As a result, existing plants installing CO₂ capture systems will also have to upgrade the existing pollution control equipment.  The compressed CO₂ will contain some residual contaminants.  It too must be purified.

CO₂ capture represents a very sizable capital investment.  There are large vessels needed for CO₂ separation and regeneration of the absorbent.  There is high pressure piping and process equipment needed for CO₂ compression.  There is substantial piping required for CO₂ transfer and sequestration.  The market for instrumentation and controls is substantial as reflected by the system complexity.  Hundreds of valves and pumps are also needed in each process.  There will be a significant market for chemicals.

Most of the large boiler companies are going to be major players in this growing market.  However, because of the innovation potential there is a good opportunity for the smaller companies.