The global market for flue gas desulphurisation (FGD) equipment is expected to rise from $3 billion in 2001 to $6 billion in 2006, according to World FGD Markets, published by McIlvaine Co. Over the same period, US market share is predicted to increase from 18 per cent to 50 per cent, and it is the two driving forces of the American market, environmental legislation and the expansion in coal firing capacity, that will power expansion worldwide.
The US has a huge installed coal-fired capacity. The new US administration expects the country to continue to rely on these plants for power generation but there is also an increasing consensus that existing plants must be fitted with FGD equipment.
The timing of these predicted retrofits is difficult to gauge but total cost is expected to be in the region of $36 billion. In Europe, the retrofit programmes are more modest.
New coal-fired capacity will also be fitted with FGD equipment in most parts of the world. In Asia, countries such as China and Vietnam are following the international norm along with their more affluent neighbours. This will contribute significantly to market growth.
New coal-fired capacity is also expected in the USA. Annual orders for coal capacity are expected to exceed 10 000MW by 2005. This represents 40 per cent of new capacity. The growth in coal-fired generation is stimulated by a 25 per cent cost premium for the other favoured fuel, natural gas, compared to coal.
