NEWS RELEASE                                                                                                    OCTOBER 2015

Seventeen Power Plant Owners Have Purchased 56 Percent of All the World’s FGD Systems

Seventeen corporations have purchased FGD systems for 725,000 MW of coal-fired boilers. This represents 56 percent of the total installed capacity.  The top seven purchasers have invested over $80 billion. The supply of FGD systems is also concentrated with just nine companies accounting for 45 percent of the total. Suppliers of components and repair parts can, therefore, focus on less than 100 companies to address 90 percent of the available market. The participation analysis is included in FGD Market and Strategiespublished by the McIlvaine Company.

  FGD Purchasers  
 

# Of Corp

# Of FGD MW/Corp 1000

Total MW 1000

% Of Total Installed Base

Investment  $ Million

Repair Replace/Corp $ Million

Examples
  7 Over   50 575 44 80,000 4,000 Big   5 Chinese Corp
  10 10-50 150 12 21,000 1,050 AEP,   TVA, Duke, Enel, EON
  15 5-10 105 8 14,000 700 NRG,   Xcel, Tokyo Electric, Chubu Electric
  20 3-5 80 6 11,200 560 AES,   EPDC, RWE, CEZ
  52 Sub   total 910 70 126,200 6,310  
  350 0-3 390 30 54,600 2,730 U.S.,    Europe, China
  404 Total 1,300 100 180,800 9,040  
               

Annual repair and replacement for the installed systems exceeds $9 billion. Fifty-two companies will account for purchases of over $6 billion.

Over the next five years, 318,000 MW are forecast to be installed on new power plants.  The five largest purchasers are expected to purchase 33 percent of the total.  Twenty companies are expected to purchase 75 percent of the total in terms of MW and total dollars.  New players in Vietnam and Indonesia plus large owners in China will be the main buyers. So concentration of expenditures in the top 100 companies will continue.

The system suppliers are typically purchasing pumps, valves, filters, nozzles and controls.  So the sales spectrum for a component supplier must include this group.  There are relatively few system suppliers for large FGD systems.  The McIlvaine analysis only includes the FGD systems purchased for electricity generators.  These systems typically are sold for $25 million to $1 billion, so smaller suppliers do not have the resources to address this market.  McIlvaine also publishes N008 Scrubber/Adsorber/Biofilter World Marketswhich covers SO2 and other acid gas removal for industrial plants.  There are several hundred suppliers to this market.

The Chinese suppliers along with a few U.S. and Japanese companies dominate the FGD market.

Suppliers of FGD Systems

# Of Corp

# Of FGD MW/Supplier 1000

Total MW 1000

% Of Total Installed Base

Investment $ Million

Examples
9 Over   50 580 45 81,000 Longyuan,   Bootes, Longking, Wuhan Kaidi, B&W, MHPS, Alstom
12 25-50 330 25 46,000 FW,   MET, Zhejiang, Yuanda, Huandian, Chiyoda, Babcock, Hamon
12 10-25 160 12 22,000 Tiandi,   GCL, Datang, SPC, Andritz, IHI, Kawasaki
20 5-10 140 11 20,000 Yonker,   ZAEPG, Feida, Sanhem, KC Cottrell, CB
53 Sub   total 1,210 93 169,000  
35 0-5 90 7 13,000 10   Chinese, 5 U.S., 10 European, 10 ROW
88 Total 1,300 100 180,000  

A number of Chinese companies have supplied more than 50,000 MW of FGD systems. One supplier has installed more than 100,000 MW.  A number of these systems are through licenses with international companies. The analysis is based on the actual supplier rather than the licensor.  MHPS, MET, B&W, Alstom and some others have large numbers of systems when both the direct supply and licensed totals are included. The Chinese license payments are dropping as a percentage of revenue.  Design improvements are being initiated in China. As a result, suppliers need to deal directly with the Chinese companies and not the licensors.

McIlvaine has introduced a program incorporating detailed forecasting of total potential sales revenue for each major prospect, project and supplier. For more information on Detailed Forecasts of Markets, Prospects and Projects contact Bob McIlvaine at This email address is being protected from spambots. You need JavaScript enabled to view it.. 

For more information on N027 FGD Market and Strategies, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/107-n027