Released September 11, 2019 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--After taking a dip in 2018, spending in the U.S. Power Industry for pipes, valves and fittings (PVF) is forecast to continue to rise through 2020, as project activity in various sectors increases. In the Power Industry, PVF is used in everything from coal-fired boilers to nuclear cooling systems, and a steady amount of project activity is a boon to PVF suppliers. Industrial Info is tracking more than 3,300 capital and maintenance projects in the U.S. Power Industry that are set to kick off in 2019 and 2020, and estimates that PVF spending in the power sector for these two years will be in excess of $143 billion. The projects cover a range of geographies; however, regional activity, such as a high concentration of retiring coal-fired plants, necessitates higher spending in various locales.
Click on the image at for a right for a look at annual PVF spending in the U.S. Power Industry.
Although new-build coal-fired activity has ground to a halt in the U.S., environmental compliance and maintenance at operational plants remain strong in the sector. Several projects are underway at operational coal-fired power plants to help reduce oxides of nitrogen and sulfur dioxide. In addition, Industrial Info is tracking more than $1.2 billion in active maintenance projects at U.S. coal-fired power plants that are set to happen in the future. These projects often require major repair and overhaul of steam turbines and boilers, necessitating an assortment of new pipes, valves and fittings.
Many of the retiring coal-fired plants are being replaced by large-scale, combined-cycle natural gas-fired plants, providing a boost to the PVF sector. Natural gas-fired plants are springing up for a number of reasons. With an abundance of U.S. natural gas production, gas prices remain low, and these facilities are comparatively inexpensive to build and operate. According to the U.S. Energy Information Administration (EIA), many of the natural gas-fired plants added to the U.S. generation mix in the future will be for newer advanced natural gas-fired, combined-cycle (ANGCC) units, which have more efficient firing temperatures and advanced-class turbines. Greater use of larger ANGCC designs has led to efficiency gains and larger economies of scale. Of the new U.S. natural gas capacity added since 2016, 31% use ANGCC units, the EIA says.
While the construction of new natural gas-fired plants is occurring throughout the U.S., the largest amount of natural gas-fired project activity (and one of the strongest locations for coal-fired retirements) is the Great Lakes market region, which includes the states of Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin. Industrial Info is tracking more than $13.5 billion in active medium- and high-probability natural gas-fired projects in this region, followed by the Northeast market region (Delaware, New Jersey, New York and Pennsylvania), which boasts more than $10.4 billion in active natural gas-fired projects.
Click on the image at right for a regional breakdown of active medium- and high-probability natural gas-fired power projects.
Among other trends in the U.S. power sector is an increasing amount of renewable energy, particularly wind and solar power. While new-build hydropower projects are few and far between, Industrial Info is tracking several upgrade, modernization, refurbishment and maintenance projects at existing U.S. hydropower plants. The bulk of spending for these projects is primarily concentrated in the Pacific Northwest and Mid-Atlantic regions. Most of the hydropower projects are at traditional, run-of-river hydropower plants. Industrial Info is tracking some planned new-build project activity at pumped-storage hydropower plants in the U.S., in which water is pumped uphill during times of low power demand, then released to power turbines and generate electricity in times of high demand. However, most of these projects, which carry hefty price tags, are rated by Industrial Info as being "low probability," with a 0% to 69% probability of being constructed as planned.
While only one grassroot nuclear project is under construction in the U.S. (Southern Company's Vogtle units 3 and 4 in Georgia), nuclear maintenance is a high-dollar industry sector, which in addition to refueling, often includes inspections and repairs to steam turbines, pressurized water reactors and cooling systems. According to the EIA, there are 97 operational nuclear reactors at 57 sites across the U.S. Industrial Info is tracking 50 maintenance projects at U.S. nuclear plants that have been completed or are scheduled to take place in 2019 and 2020.
As one can see, Power Industry project activity remains strong in the U.S., providing multiple opportunities for suppliers of pipes, valves and fittings. Project trends, including the construction of grassroot natural gas-fired plants and high maintenance project activity at operational plants across all fuel types, will continue necessitating the need for PVF equipment and services this year and in the years to come.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Click on the image at for a right for a look at annual PVF spending in the U.S. Power Industry.Although new-build coal-fired activity has ground to a halt in the U.S., environmental compliance and maintenance at operational plants remain strong in the sector. Several projects are underway at operational coal-fired power plants to help reduce oxides of nitrogen and sulfur dioxide. In addition, Industrial Info is tracking more than $1.2 billion in active maintenance projects at U.S. coal-fired power plants that are set to happen in the future. These projects often require major repair and overhaul of steam turbines and boilers, necessitating an assortment of new pipes, valves and fittings.
Many of the retiring coal-fired plants are being replaced by large-scale, combined-cycle natural gas-fired plants, providing a boost to the PVF sector. Natural gas-fired plants are springing up for a number of reasons. With an abundance of U.S. natural gas production, gas prices remain low, and these facilities are comparatively inexpensive to build and operate. According to the U.S. Energy Information Administration (EIA), many of the natural gas-fired plants added to the U.S. generation mix in the future will be for newer advanced natural gas-fired, combined-cycle (ANGCC) units, which have more efficient firing temperatures and advanced-class turbines. Greater use of larger ANGCC designs has led to efficiency gains and larger economies of scale. Of the new U.S. natural gas capacity added since 2016, 31% use ANGCC units, the EIA says.
While the construction of new natural gas-fired plants is occurring throughout the U.S., the largest amount of natural gas-fired project activity (and one of the strongest locations for coal-fired retirements) is the Great Lakes market region, which includes the states of Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin. Industrial Info is tracking more than $13.5 billion in active medium- and high-probability natural gas-fired projects in this region, followed by the Northeast market region (Delaware, New Jersey, New York and Pennsylvania), which boasts more than $10.4 billion in active natural gas-fired projects.
Click on the image at right for a regional breakdown of active medium- and high-probability natural gas-fired power projects.Among other trends in the U.S. power sector is an increasing amount of renewable energy, particularly wind and solar power. While new-build hydropower projects are few and far between, Industrial Info is tracking several upgrade, modernization, refurbishment and maintenance projects at existing U.S. hydropower plants. The bulk of spending for these projects is primarily concentrated in the Pacific Northwest and Mid-Atlantic regions. Most of the hydropower projects are at traditional, run-of-river hydropower plants. Industrial Info is tracking some planned new-build project activity at pumped-storage hydropower plants in the U.S., in which water is pumped uphill during times of low power demand, then released to power turbines and generate electricity in times of high demand. However, most of these projects, which carry hefty price tags, are rated by Industrial Info as being "low probability," with a 0% to 69% probability of being constructed as planned.
While only one grassroot nuclear project is under construction in the U.S. (Southern Company's Vogtle units 3 and 4 in Georgia), nuclear maintenance is a high-dollar industry sector, which in addition to refueling, often includes inspections and repairs to steam turbines, pressurized water reactors and cooling systems. According to the EIA, there are 97 operational nuclear reactors at 57 sites across the U.S. Industrial Info is tracking 50 maintenance projects at U.S. nuclear plants that have been completed or are scheduled to take place in 2019 and 2020.
As one can see, Power Industry project activity remains strong in the U.S., providing multiple opportunities for suppliers of pipes, valves and fittings. Project trends, including the construction of grassroot natural gas-fired plants and high maintenance project activity at operational plants across all fuel types, will continue necessitating the need for PVF equipment and services this year and in the years to come.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
