Coal-fired power represents the largest single opportunity for suppliers of combust, flow and treat (CFT) equipment. The replacement and repair for existing plants far exceed that of any other application. There is so much new plant construction in Asia that coal-fired generators remain the leading purchasers of new systems and components. The market is very challenging for CFT suppliers because the geographies and decision makers keep changing.
Who would have predicted that in terms of CFT products for new plants the U.S. would not be in the top 50 countries and that India, Vietnam, Indonesia, and Turkey would be near the top behind China? Who would have predicted that China would have tougher standards for the combination of greenhouse gases and air pollutants than any other country?
Non-Chinese suppliers of instruments, valves, pumps, nozzles, seals, mist eliminators, filter bags, precipitator rappers, and DeNOx catalyst have to be innovative to keep leadership positions when more than 50% of the market is in China. The emergence of Chinese coal-fired generator and APC system suppliers on the world stage have both negative and positive implications for the international CFT suppliers. The negative aspect is that the suppliers will tend to use Chinese components. The positive aspect is that many of these companies are now supplying build, own, operate systems. If an international supplier has the lowest total cost of ownership product then he has a chance to sell to Chinese system suppliers who are charging owners a fixed price per kW.