Power Producers Spend Billions to Comply with SO2 Emission Reductions

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Researched Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Domestic producers of electricity have spent billions in past years to comply with NOx (Nitrogen Oxide) emission reduction regulations at power generating stations and the expensive trend of environmental compliance continues as power generators allocate large portions of their capital budget with SO2 (Sulfur Dioxide) emission reductions in mind.

Over the past year, Industrialinfo.com has identified over $23 billion in planned SO2 compliance projects at existing power plants. This includes close to $18.9 billion for new unit additions and $4.4 billion for existing unit retrofits. These projects are scheduled to kick-off between now and early 2006.

In most cases, unit retrofit projects include the installation of new wet or dry flue gas desulfurization (FGD) scrubbers and major retrofit of the coal-fired boilers. Depending on the size of the generating plant the Total Investment Value (TIV) for this type of retrofit or compliance project can range from as small as $25 million to over $200 million. A large portion of the retrofit activity identified by Industrialinfo.com is concentrated in the Northeast, Southeast and Mid-Atlantic regions. 25 SO2 compliance retrofit projects are represented in the attached analysis.

Click the image to the right to view a statistical analysis for the unit retrofits planned by Plant State and kick-off Year Month.

SO2 emission reduction equipment is standard for all new coal-fired generating units. Searching Industrialinfo.com's North American Project Database there are approximately 64 major unit additions planned in the United States or Canada that will include SO2 emission reduction equipment planned to kick-off between September of 2003 and 2006, representing a TIV of approximately $18.9 billion. "The number of planned unit additions will continue to fluctuate as the energy market attempts to recover and future fuel prices dictate the feedstock of choice," commented Mr. Britt Burt, Power Group Manager with Industrialinfo.com.