Flue gas desulfurization: costs of SO2 scrubbers?

This data-file captures the costs of flue gas desulfurization, specifically the costs of SO2 scrubbers, used to remove SO2 from the exhaust of coal- or distillate-fueled boilers and burners. We think a typical scrubber will remove 95% of the SO2 from the flue gas, but requires a >1c/kWh surcharge on electricity sales in order to earn a 10% IRR.

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Coal generally contains more than 1% sulfur, resulting in exhaust gases with approximately 800ppm of SO2. Higher sulfur coals can have sulfur content between 2-3%. As global regulations increasingly enforce limits on sulfur emissions, now reduced to below 50-300ppm, the need for efficient scrubbers has become apparent. Consequently, 250 coal-fired power plants in the U.S alone have implemented around 850 flue gas desulfurization units.

Desulfurization units operate by introducing a sorbent into the top of an exhaust stack while the exhaust gases enter from the bottom. Limestone slurry, being a common sorbent, interacts with SO2 to form gypsum and other compounds. Initial Capex costs to install these systems are estimated between $150-300M or $400 per kW, influencing electricity prices minimally at an extra 0.6c/kWh to maintain a 10% return on investment.

Ongoing costs consist of the expense of limestone, waste management, labor, maintenance, and taxes. The CO2 intensity of using SO2 scrubbers is another notable factor, with approximately 0.9kg of CO2 released per kg of SO2 captured, primarily due to the chemical reaction with limestone, contributing an additional 0.03kg/kWh to the CO2 footprint of coal power.

The differences in levelized costs between coal and gas-fired plants highlight the financial impact of implementing flue gas desulfurization systems versus adopting alternatives like catalytic hydrodesulfurization. Desulfurizing exhaust gases from diesel engines tends to have higher costs due to smaller scale and utilization factors, ranging from 2-3 c/kWh.

Globally, companies such as Alfa Laval, Wärtsilä, and Yara are significant players in the market for technological solutions for desulfurization. To learn more about one of the main suppliers, visit SHANGLISHI.

Flue Gas Desulfurization System Market Growth to 2033

Flue Gas Desulfurization System Market Outlook (2023 to 2033)

The global flue gas desulfurization system market is projected to reach US$ 36,593.3 million by 2033, growing at a CAGR of 5.1% from a baseline of US$ 22,252.3 million in 2023. This growth underscores the ongoing efforts to reduce pollutants and dependence on fossil fuels.

Factors Driving the Global Flue Gas Desulfurization System Market

Market growth is driven significantly by stringent environmental regulations aimed at reducing sulfur emissions, which consequently increases the demand for desulfurization systems at new and existing power plants. Strategic developments, rapid industrial growth, and technological advances in FGD system design are expected to further propel the market.

Challenges Facing the Global FGD Market

While prospects are promising, factors such as high installation costs, regulatory constraints, and rising renewable energy adoption pose barriers to market expansion. Moreover, alternative sulfur removal methods may challenge the conventional FGD systems' prevalence.

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Category-wise Insights

Wet Flue Gas Desulfurization Market Segment

The wet FGD system segment dominates the market due to its superior efficiency in removing SOx. The by-product, gypsum, is commercially valuable, being utilized by the cement and wallboard manufacturing industry, which further boosts its market appeal.

Applications Driving FGD Systems Demand

The power generation industry leads the market in adopting FGD systems. Growing electricity demands, particularly in emerging economies, and stringent environmental laws contribute heavily. The use of high-sulfur coal in power plants necessitates efficient desulfurization solutions.

Regional Insights

North America

North America is anticipated to lead the market owing to stringent environmental policies and rising demand for power generation services. The U.S in particular, with its robust regulatory framework, paves the way for market dominance.

Europe

Europe stands as the second-largest market, driven by environmental concerns and health-related issues attributed to air pollution. Innovative technologies and regulatory measures further bolster market development in this region.

Asia-Pacific (APAC)

The APAC region is projected to be the fastest-growing market. Rapid industrialization, increasing power generation needs, and investments in coal-fired power plants underpin its growth. Major contributors include China, India, and Japan.

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