Market Trends of Steam Boiler Industry for Thermal Power Plant and Oil Refinery
This section covers the major market trends shaping the Thermal Power Plant & Oil Refinery Steam Boiler Market according to our research experts:
Water Tube Boiler to Dominate the Market
- Water-tube boilers generate vapor from the water that flows through tubes and is heated by the combustion of various fossil fuels, like coal and natural gas. The vapor generated is sent to the steam turbine at a high pressure of around 250 bar that rotates the turbine, thus, helping to generate electricity.
- Water-tube boilers have higher efficiency and a pressure range of around 250 bars. It requires less time to raise steam pressure, provides greater flexibility for responding to load changes, and provides a greater ability to operate at high steam generation rates.
- Water tube boilers generate vapor or steam to rotate the turbines and generate electricity. Water is boiled in tubes by burning fossil fuels, such as coal, gas, and oil. Natural gas-operated power plants are the most eco-friendly power plants that generate a considerable amount of carbon emissions compared to oil and coal.
- As of 2021, there are nearly 176.9 GW of pre-construction coal-powered thermal power plants worldwide. China is the major country to have the highest number of under-construction coal-powered plants. Construction of these plants is estimated to increase the market growth of steam boilers in the near future.
- Further, despite the shrinking number of coal-based power plants globally, the countries (such as India) are still endorsing the new coal-based power generation projects. About 40 GW of the country's coal plants are either financially stressed or are at risk of bankruptcy. Less than 4.5 GW of new capacity was commissioned in 2021, compared to 39 GW in 2010. Due to overcapacity and competition from cheaper renewables, low plant-load factors have made it difficult for coal plants to recover their investments. Despite these unfavorable market conditions for coal-based power, the governments in the region continue to invest in new plants.
- In July 2022, Through its subsidiary, JERA Power Taketoyo G.K., JERA Co., Inc. began commercial operation of Unit 5 of the Taketoyo Thermal Power Station located at 1-1 Ryugu, Taketoyo-Cho, Chita County, Aichi Prefecture, Japan. The company has been replacing aging equipment for the past couple of years. This high-efficiency coal-fired power plant is equipped with Ultra-Supercritical (USC) power generation technology.
- As of 2022, the Quang Trach 1 Coal-fired Power Plant is under construction in Vietnam with a capacity of 1.2 gigawatts, and the estimated plant investment is about USD 1.28 billion. The project is expected to be commissioned by 2025 and generate up to 8.4 billion kilowatt-hours of electricity annually.
- Construction of these plants is estimated to increase the market growth of steam boilers in the near future.
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Asia-Pacific to Dominate the Market
- As of 2021, Asia-Pacific dominated the market with the highest number of thermal power plants and refineries. With the increasing population and the growth of urbanization in the region, the demand for energy and power is expected to increase during the forecast period.
- As of July 2022, there were around 1,751 coal power plants in the region, and the majority of the total thermal power plants are operated by coal, the reason being the lower price of coal compared to other fuels. But with the rising consciousness of climate change, the region is likely to decline the uses of coal-powered plants in the near future.
- As of July 2022, there were nearly 176 planned coal-powered plants in the region. Construction of these plants is expected to increase the market growth of steam boilers during the upcoming years.
- Apart from power plants, the region's oil refining capacity was 36,478 thousand barrels per day. It contributes to nearly 35.79% of the global refining capacity and is expected to add to its refining capacity during the forecast period. China is the prominent country in the region, contributing 16.67% of the world's oil refining capacity in 2021. Moreover, the country is planning to make up 44% of the crude oil refining capacity in the region in 2023.
- The Indonesian government announced its plans to more than double the refining capacity during 2018-2025 to reach 2.2 million barrels per day. As a result of these policies, major refinery and petrochemical plant construction and upgradation projects are upcoming and are in the pipeline.
- In October 2022, Pertamina, an Indonesian state-owned oil and gas company, intended to invest up to USD 50 billion in building and expanding refineries next year. About half of this investment will be devoted to developing a greenfield project with the Russian state energy company Rosneft. With the completion of the new refinery, crude refining capacity will increase by 300,000 barrels per day.
- In November 2022, The Indian Oil Corporation Limited (IOCL), its subsidiary Chennai Petroleum Corporation Limited (CPCL), and other seed equity partners formed a joint venture to develop the Nagapattinam refinery and petrochemicals project in Tamil Nadu, India.
- Such under-construction and planned refineries in the region are expected to increase market growth during the forecast period.
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