INTRODUCTION
STUDY GOAL AND OBJECTIVES
This BCC, Inc. technical/marketing report provides an in-depth analysis of
the U.S. market for advanced water treatment for the power generation industry.
These methods include membrane filtration, ion exchange, electrodeionization,
and emerging processes using ozone and ultraviolet light, coupled under the
heading "novel technologies." The so-called "advanced"
technologies are known as advanced for their improved effectiveness against a
range of contaminants found in source water, their decreased production of
waste, their nonhazardous properties, their diminished demand for chemical
additives, and sometimes their lower energy requirements.
Whether physical,
biological or chemical processes, water treatment ranges in sophistication from
ancient sieving methods to state-of-the-art computer-controlled techniques.
Conventional power plant water treatment is heavily dependent on mechanical
processes and chemical additives, methods hundreds of years old. The market
value for such treatment is estimated to be as large as $6 billion in 2003 and
growing at an average annual rate of 4% over the next 5 years. High purity water
is pretreated first by clarification. Large particles settle out by gravity,
while smaller suspended particles are treated in the clarifier by
coagulation/flocculation to produce a settleable solid. Water hardness also may
be removed in the clarifier using lime and soda ash. Mechanical deaerators are
used where water contains dissolved gases such as carbon dioxide, ammonia or
hydrogen sulfide. Treated water then is sent to ion exchange beds.
In addition
to ion exchange resins, water treatment chemicals include a host of increasingly
regulated substances including the ubiquitous biocide chlorine, scale and
corrosion control additives including zinc and chromate, the toxic oxygen
scavenger hydrazine, boiler cleaning solvents and dimineralizer regenerants.
While these methods purify water effectively, governments and end users are
seeking more environmentally friendly treatment.
This report will evaluate the
influence of current and proposed regulations under the Clean Water and Safe
Drinking Water Acts, rulings that are impacting the design and operation of
fossil fuel power plants. Under the Clean Water Act, the EPA recently proposed
regulations to limit the volume of water used by power plants by requiring wet
or dry closed-loop cooling systems. Drinking water regulations also could affect
how power plants dispose of certain waste products. In addition to environmental
concerns, the lack of available fresh water is affecting the siting and
permitting of new power plants. Issues of demised U.S. water resources in terms
of both water quantity and quality will be discussed alongside the advanced
treatments that permit water reuse. Barriers to the adoption of new technology
will be presented where their impact is noticeable.
With the exception of ion
exchange, which has managed to remain "advanced" despite requiring
caustic chemicals, none of the traditional technologies will be evaluated in
this report except to make comparisons to advanced treatments. In addition to
regulatory drivers, technical and market drivers are considered in appraising
the current value of the technologies and in forecasting growth and trends. The
conclusions are illustrated with statistical information on markets,
applications, industry structure, and dynamics along with technological
developments. The report is primarily a study of the U.S. market, but due to the
international presence of many of the industry participants, global activities
are included where appropriate.
REASONS FOR DOING THIS STUDY
This report is intended for those who require a thorough analysis of the
power plant water treatment industry that traces significant developments and
forecasts important trends, quantifies the various market sectors, and profiles
companies active in those areas. Because of the fragmented nature of the
industry, it is difficult to find studies that gather extensive data from
diverse resources and analyze it in the context of a comprehensive document.
This report contains a unique collection of information and conclusions that is
difficult to find elsewhere.
CONTRIBUTIONS OF THE STUDY AND FOR WHOM
This comprehensive technical/marketing report aims to provide those
interested in investment, acquisition, or expansion into the market for advanced
power plant water treatment with specific, detailed information crucial to
making educated decisions. Senior marketing personnel, venture capitalists,
executive planners, research directors, government officials, and suppliers to
the membrane industry who want to discover and exploit current or projected
market niches should find this report of value. Readers who wish to understand
how regulations, market pressures, and technology interact in the arena also
will find this study worthwhile.
SCOPE AND FORMAT
This report examines the market for four categories of water treatment:
membrane filtration; ion exchange; deionization, which combines ion exchange and
membranes; and a few emerging novel methods such as ozone and ultraviolet light.
5-year projections are provided for market activity and value. Industry
structure, technological trends, pricing considerations, R&D, government
regulations, company profiles, and competitive technologies are included in the
study.
METHODOLOGY
A comprehensive literature, patent, and Internet search was undertaken, and
key industry players were queried. News and current developments in the field
are evaluated in BCC, Inc.'s monthly newsletters, Water Technology News and
Membrane & Separation Technology News.
Growth rates were calculated based
on existing and proposed equipment sales during the forecast period. Consumables
used in the processes, replacement membranes, resins, etc., were also taken into
account. Values are given in U.S. dollars; forecasts are made in constant U.S.
dollars, and growth rates are compounded. Calculations for system sales do not
include design or engineering costs.
INFORMATION SOURCES
In addition to data from BCC, Inc.'s related monthly newsletters, other
information in this report was gleaned from many different sources. Figures on
U.S. electricity production, capacity, new plants and user demand are based on
statistics from the Energy Information Administration. Department of Commerce
numbers on water/wastewater expenditures are quoted in the section describing
international markets. SEC filings, annual reports, patent literature, business,
scientific and industry journals, government reports, census information,
conference literature, patent documents, on-line resources were researched.
Interviews with industry participants also were conducted.