Power plant operators around the world are expected to increase their spending on flue gas desulphurisation (FGD) systems over the next decade, with the annual level of expenditure peaking at $8.8 billion in 2008 according to the McIlvaine Co. The USA is expected to account for 60 per cent of this total.
Purchases in 2001 are expected to be $2.5 billion. After 2008, the level of expenditure will start falling, with a predicted expenditure in 2009 dropping to $8.2 billion.
The US market will be driven by a new move towards coal-fired power plants. Already 68 new projects have been announced and others are expected as gas prices rise. Even more influential will be coming regulation forcing installation of scrubbers on virtually all coal-fired units.
In Europe the stricter emission limits will help market growth, particularly by forcing installation of equipment on plants in the Eastern European countries hoping to join the EU soon. Expansion of coal-fired capacity in Asia will also boost the market, the company believes.
The main beneficiaries of this market growth are likely to be large system suppliers such as Alstom, Babcock and Wilcox, Mitsubishi and Babcock Borsig. Orders from these companies for components such as pumps and filters will pass down the supply chain. In 2008, for example, the orders to pump and valve suppliers are expected to exceed $75 million. Stainless steel and other corrosion resistant material orders should total $525 million.
