The global flue gas desulfurization market is expected to grow at a compound annual growth rate of 5.12% over the forecast period to reach a market size of US$23.802 billion in 2026 from US$17.636 billion in 2020. The generation and production of energy in any type of industry requires the burning of fuels, such as oil and coal. Burning of fuels leads to environmental pollution, as major gases or flue gas, which consists of oxides of sulphur and nitrogen, are produced and released in the air during the process. Most of the Sulphur produced is converted into Sulphur dioxide, under relative and standard temperature conditions. Governments and relative organizations worldwide, have been forming regulations to combat climate change and global warming, which is caused by the release of harmful gases and chemicals into the environment. Flue gas Desulfurization consists of the removal of Sulphur dioxide from the flue gas, before the emission, the process is usually done during the combustion in fossil fuel and thermal plants such as oil and coal combustion units. According to the United Nations, developed countries have been able to reduce the Sulphur level from fuels to 10 parts per million or ppm. But, in transitional and developing countries, the average Sulphur levels, mostly in diesel fuels, are extremely higher and even reach the level of 10,000 ppm. According to the United States Environmental Protection Agency, the major source of Sulphur dioxide in the atmosphere is the burning of fossil fuels by other industrial facilities and power plants. There are various health concerns related to Sulphur dioxide. The EPA states that short term exposure to Sulphur dioxide can impact the body’s respiratory system and can make breathing difficult. People suffering from asthma, are sensitive to exposure to the Sulphur dioxide. Sulphur dioxide also causes acid rain, which makes a major negative impact on sensitive ecosystems. Various organizations and countries have been developing and forming regulations to overcome and reduce Sulphur dioxide emissions. The International Maritime Organization introduced several regulations in the year 2005, under the act Annex VI of the International Convention for the Prevention of Pollution from ships, which is also known as the MARPOL Convention. The necessity for this act is due to the reliance on crude or bunker oil for ships and vessels. The organization several measures to reduce Sulphur dioxide in the year 2019. From January 2020, the overall limit for the use of Sulphur in fuel oil on board vessels and ships, which were operating outside designated emission control areas, should be reduced to 0.50% m/m, which is also called mass by mass. The novel development from the year 2020, would significantly reduce the number of Sulphur oxides, which were being released from ships. This development is expected to have a positive impact on Flue Gas Desulfurization Market in the coming years. Major developing and developed countries have also been making and forming certain regulations to reduce and minimize the usage of Sulphur oxides. The United States Environmental Protection Agency, which is also known as EPA, introduced several quality standards for Sulphur dioxide. National Ambient Air Quality Standards for Sulphur dioxide specify the highest and maximum amounts of Sulphur to be present and released in outdoor air. The EPA in February 2019 issued a decision to implement and retain the primary NAAQS standards and guidelines for Sulphur Dioxide. The current standard was established in 2010, which specifies that 75 ppb or parts per billion on the 3-year average of the yearly distribution of around an hour daily max. concentrations. These types of developments will propel the market growth in the coming years.
Thermal and Coal Based Energy to Propel the Market Growth
The major challenge in the market growth is due to the adoption of low-carbon energy sources nuclear, solar, wind, and hydro, for energy generation purposes. The coal-fired power generation dropped in the year 2019 by 3%, according to the report given by the International Energy Agency. But the market generated record growth in the year 2018, with the generation and capacity of around 10,000 TWh. But, in the coming years, the growth is expected to surge because of the adoption and innovation in the coal sector. Developing countries such as India and China are expected to propel the thermal and coal-based energy demand in the coming years. Coal Generation continued to expand in Southeast Asia, India, and China, in the year 2019. According to IEA, there have been around 2080 GW existing coal feet, out of which, 60% is 20 years old or less. China continues to develop thermal and coal plants, which is expected to drive the flue gas desulfurization market growth during the forecast period. Coal is a major natural resource in the country, and the government has been encouraging and adopting several related energy policies to develop and construct coal plants. China currently has 249.6 GW of coal capacity under construction, with a surge of 21% over the year-end 2019. In 2020, the Chinese Power and Energy Industry proposed 40.8 GW of novel coal plants. In India, the market is expected to grow at a substantial rate in the coming years. In January 2021, the Indian Power Ministry proposed pushing back its 2017 deadline for thermal plants to reduce Sulphur dioxide emissions, by the installation of novel Flue Gas Desulphurization units. The country has been committed to increasing the thermal power capacity, with compliance with environmental standards. Major companies have been investing significant capital to develop novel and advanced solutions for the market. In November 2020, GE Power India Limited announced that the company would continue to pursue business opportunities in the Flue Gas Desulphurization (FGD) Segment and market. According to the company, the total FGD market in the country has been around 225 GW. The company had been awarded 10 major FGD projects in India, which amounts to 13 GW. Other companies have also been making major developments in the market. In September 2020, Eskom, a major player in the market, issued a request to conduct and gain insight to FGD Technologies, to assess their suitability for deployment and placement at Medupi Power Station, which is located in Limpopo. The company had been committed to installing FGD at Medupi Plant by the year 2025.