Frost & Sullivan assesses the impacts of new EPA rules

The global air pollution control equipment market in the energy and power industry is expected to see major growth once the electric utility and the oil and gas industries comply with the increasingly stringent environmental regulations, said a new report from consultant Frost & Sullivan.

As the future of existing power plants is uncertain due to new regulations focusing on efficiency and reduction in capital costs, the market is expected to grow only gradually until 2014. New assessments from Frost & Sullivan’s “Analysis of the Global Air Pollution Control Equipment in Energy and Power Market” research finds that the market earned revenues of $7.27bn in 2010 and estimates this to reach $9.69bn in 2017, the company said in a March 6 announcement about this new analysis.

The U.S. Environmental Protection Agency’s Maximum Achievable Control Technology rules, also known as the Mercury and Air Toxics Standards, will compel solution providers to reevaluate their technology solution requirements to fulfill emission regulations, Frost & Sullivan noted. Planned projects between 2012 and 2013 are likely to be delayed until 2014, it added.

Increased market saturation due to the influx of solution providers from Asia will affect the market, the company added. These companies are looking to penetrate the retrofit market by offering solutions at competitive prices. This will increase price competition and will result in mergers and licensee partnerships between local solution providers and foreign companies, Frost & Sullivan said.

“Upcoming markets are likely to follow in the footsteps of mature markets, such as North America and Europe, by implementing emission control technology,” said Frost & Sullivan Research Analyst Ankur Jajoo. “The installation of such technologies at refining and power generation facilities present opportunities in the regions of Asia Pacific, Africa, Middle East, and a part of South America, as they slowly begin to comply with regulations.”

Solution providers are aiming to meet the high demand from oil and gas refineries to treat the emissions produced onshore and offshore. Fabric filters (baghouses) for particulate control, selective catalytic reduction for NOx control, flue gas desulfurization, and sorbent injection technology are likely areas of long-term growth. Fabric filters are now considered replacements for electrostatic precipitators and are anticipated to experience the largest rise in market share, Frost & Sullivan said.

“Market growth can be catalyzed by focusing on the development of more energy efficient, compact treatment solutions for emission control and the long-term usage of non-renewable energies such as coal, oil and natural gas,” said Jajoo. “Solution providers constantly seek innovative applications for new technologies and are exploring the aftermarket potential of the waste collected to ensure further environmental sustainability.”

Frost & Sullivan said it enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. Frost & Sullivan leverages 50 years of experience in collaborating with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. Frost & Sullivan, founded in 1961, has more than 40 global offices with more than 1,800 industry consultants, market research analysts, technology analysts and economists.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.