How will the concept of green economy drive adoption of heat recovery steam generators across the US?
Global heat recovery steam generator industry is poised to witness a significant impetus over the span of six years from 2019 to 2025. This can be attributed to the rapid industrialization and rising urbanization trends in conjugation with the mounting demand for electrical power across various economically backward regions of developed as well as developing economies worldwide.
In fact, it would be pivotal to note here that 13 per cent of the world was denied electricity access in 2016, of which the rural areas accounted for a major share. This had ultimately enabled vivid industries to adopt energy efficient technologies like waste heat recovery systems to reduce the power consumption and energy costs. This trend is likely to bolster heat recovery steam generator market size in the years to follow.
What is the significance of heat recovery steam generators?
Heat recovery steam generators generally recover thermal energy from hot gas fumes, waste gas streams emitted from industries, and combustion turbines which is further used across industries to generate electricity and power. These systems offer superior thermal efficiency and provides utilities with optimum utilization of exhaust heat.
Elaborating further, HRSGs are extensively used in cogeneration and combined-cycle plants to recuperate energy from exhaust gases. In cogeneration plants, these systems are added to produce low pressure process steam while in combined cycle plants, these are used to generate high pressure, superheated steam, and high temperature. Not to mention, high recovery steam generators are also used in chemical plants, industrial plants, and refineries to generate steam in order to carry out diverse operations.
In this regard, it is essential to mention that rising investments in power generation plants would stimulate the growth graph of HRSG market over the analysis timeframe. For instance, Saskatchewan Power Corporation had initiated a USD 680 million worth Chinook Power Station project in 2017. As per news reports, the power station is about 350 megawatt combined cycle natural gas fired power plant featuring a Siemens SGT6–5000F gas turbine generator, a HRSG, and an SST6–900 steam turbine generator by Siemens. This project was aimed at offering clean electricity to nearly 3 lakh homes across the region.
32% energy consumption across the U.S industrial sector to drive demand for HRSGs
The United States has been deemed to acquire a considerable stake of the global energy consumption across industrial sector. Validating the same, EIA reports suggest that the country’s industrial sector acquired for a considerable stake of 32 per cent of the total energy consumption. Of this, various studies claim that over 20 to 50 per cent of the energy is lost in form of hot fumes emitted from heated equipment products and surfaces.
Considering the aforementioned, it is safe to declare that industrial sector expansion would add to the growing statistics of heat recovery steam generator market. How? Speculations have it that the industrial sector progression would increase efforts toward improving energy efficiency and reducing the power consumption. Such steps would accelerate the demand for these systems, thereby augmenting the revenue shares worldwide.
An eminent factor that is supporting the escalation of US heat recovery steam generator market across the industrial sector is increasing dependency of nation on natural gases for production of clean electricity and energy. According to EIA reports, the industrial sector accounted for nearly 35 per cent of natural gas consumption in 2017, while natural gas emerged as the only source for about 31 per cent of the country’s industrial sector’s total energy consumption. These factors are estimated to offer lucrative growth opportunities to the regional market players, who have been striving to develop innovative solutions while looking towards promoting the green ecology concept in the country.