Sales of selective catalytic reduction (SCR) and selective non-catalytic reduction (SNCR) nitrogen oxides control systems plus the associated catalyst will be $5.5 billion in 2014.
This is the latest forecast in NOx Control World Markets published by the McIlvaine Company.
SCR system and catalyst revenues will exceed $4.9 billion. SNCR system revenues will exceed $600 million. These totals do not include the revenues for the sale of ammonia and urea. They also do not include SCR systems for mobile vehicles which are covered in another McIlvaine report.
Most of the expenditures will be by owners of coal-fired boilers. However, the percentage growth rate in the gas turbine segment will be higher than for coal. China will continue to be the largest purchaser of systems. It has held this lead for some time. But it is only recently that it also became the leading purchaser of replacement catalysts.
A strong segment in the industry is the treatment of existing catalyst for reuse. Cleaning, rejuvenation and regeneration are the three treatment options. Treatment is reducing the market for new catalyst. On the other hand, the rapid growth for systems has challenged catalyst manufacturers to keep up with demand. Many new catalyst manufacturing plants have been established in China.
The Chinese market for new systems has already exceeded that of the former leader (U.S.). China is committed to install SCR on most of its coal-fired power plants. The U.S. still has 40% of its capacity without SCR and will, therefore, remain an attractive market.
The cement industry will not be a major purchaser of SCR in 2014, but is likely to accelerate purchases in future years. The industry is already purchasing many SNCR systems.
The revenues are also expanding due to a new role for selective catalytic reduction. Purchasers are willing to pay more for catalyst which will reduce the conversion of SO2 to SO3. At the same time, they are also willing to pay more for catalyst which will oxidise mercury. Most suppliers are offering these options.
