NEWS RELEASE                                   AUGUST 2010

$3.3 Trillion 5 Year Capital Investment in Dynamic Segments of Energy and Environment

In the next five years over $3.3 trillion will be invested in dynamic segments of the power, energy and water industries.  The largest application will be for coal-fired boilers followed by municipal wastewater plant construction.  The largest purchasing region will be BRIC (Brazil, Russia, India, and China) with twice the investment as the Americas.

Capital Investment 2011 through 2015 ($ billions)

The other eleven industries in the rankings are all under $50 billion:
 

These additional industry segments will require $281 billion investment in the next five years.

Geographical groupings have been selected based on the McIlvaine “Decisive Classification” principles.  As noted above, BRIC includes Brazil, Russia, India, and China.  This grouping has become increasingly popular due to projections that these four countries could have a combined GDP of $128 trillion by 2050 compared to the U.S. present GDP of $14 trillion.  The Americas excludes Brazil.  Other Asia excludes China and India but includes Australia.  MENA includes the Middle East and those North African nations with similar cultural identity.  ROW is primarily other countries in Africa.

The unique perspective of this grouping is that the Americas share its #2 position in the opportunity rankings with Europe and Other Asia. 

BRIC will require an investment of $1.3 trillion or 38 percent of the total.  MENA is one third of the Americas potential.

There are substantial shifts in the markets from a regional perspective.  The biggest shift from region to region is in ethylene manufacturing where all new construction is in MENA and BRIC.  From a growth perspective, shale gas extraction in the Americas will grow from an insignificant base to over $15 billion in the five year period.  The biggest single regional market is coal-fired power in BRIC.

Europe appears twice on the top ten list.  It has a huge offshore wind development program.  It also appears at #10 under new coal-fired boilers.  But unlike BRIC, these plants are primarily replacements of existing plants with more efficient ones for the purpose of reducing greenhouse gases.

These investment forecasts are based on megawatt, tons per day and million gallons/day forecasts by country appearing in the following McIlvaine reports:  Renewable Energy, Fossil and Nuclear, Oil, Gas, Shale and Refining, Water and Wastewater Treatment Chemicals, FGD, NO_X Control, Fabric Filter, and Electrostatic Precipitator.  More information on these reports is available at: www.mcilvainecompany.com.

More details of this analysis by industry and region and a relevant blog are available on the McIlvaine free site.  We encourage questions and discussions.  To register click here: http://www.mcilvainecompany.com/UPIS_Registration_Form.htm