Power plant purchasers will spend $3.2 billion for pumps next year. Sixty-seven percent of the purchases will be for Asian power plants. Decades ago many pump decisions for Asian power plants were made in other regions by international power plant developers. Today many Chinese power plant developers are making pump decisions for Africa, the Middle East and Turkey.
Most power plant operators including those in Asia are making decisions based on lowest total cost of ownership. This provides a window of opportunity for international suppliers with better products.
Source: McIlvaine Company
The challenge for international pump companies is to reach the decision makers. New plants are being built in seven African countries which already have some coal fired capacity. Another eleven African countries will be installing coal fired power plants for the first time. Vietnam is planning to move forward with an additional 40,000 MW of coal plants. Indonesia will add another 30,000 MW while Bangladesh with Chinese help is adding 25,000 MW of coal plants.
More money will be spent for pump replacement and repair than for pumps at new plants. There are already 2 million MW of coal fired plants installed worldwide. The base will increase by 270,000 MW in the next decade even with the retirements in some countries. An additional pump market is created by SO2 emission limits being applied in India and other Asian countries. The new regulations are also being applied in Africa. This means large FGD slurry pumps will be installed at many existing plants as well as at most new plants. Regulations regarding water pollution are forcing plants to install treatment systems which include pumps needed to move the wastewater through filtration equipment.
The top fifty owners will buy more than 50 percent of all the power plant pumps. The top dozen will spend $200 million or more on pumps each year.