|
Impact of
USA Flue Gas Desulfurization Programs on North American Gypsum Supply and Demand
(2003, 2010, 2015)
Introduced
November 2004
Why is this important
to FGD Gypsum producers, consumers, and regulators?
The production of FGD gypsum is a byproduct of the generation
of electricity and as a byproduct is not subject to the normal supply/demand
market forces that would tend to influence pricing and production volumes.
The FGD gypsum will be made whether it is used or not. The gypsum industry
has refitted many of their manufacturing facilities to allow the replacement
of gypsum rock with this coal combustion product (CCP) such that several
million tons are being used. The overall scrubber capacity is also climbing
such that more and more FGD gypsum is being made. The cost of disposal of
this FGD gypsum is also climbing rapidly, largely due to the impact of more
stringent landfill management requirements set by the regulators.
With supply, demand and costs all changing it is difficult to
determine what decisions should be made by each of the major stakeholders.
Gypsum consumers need to decide which facilities should be closed, upgraded
or replaced; decisions that rest heavily on accessibility and price of the
gypsum available. The power companies also must decide the lowest cost
route to compliance with air quality requirements, with the production, sale
and/or landfill being significant factors in capacity planning, load
switching and human resources management. The regulators are expected to
balance the environmental benefits of both air quality and solid waste
regulations with the overall economic impact on the industries affected.
With scrubber technology evolving, and the FGD gypsum supply/demand balance
changing rapidly, it is difficult to determine how much the regulations
should impact these businesses.
The volumes and costs are significant to
both industries. Choices made regarding FGD gypsum have immediate impact on
availability and pricing of electricity and gypsum board; but can also have
a longer term impact on electricity pricing, building products pricing,
conservation of natural resources, USA reliance on coal, implementation of
Clean Coal Technologies and USA trade balance, to name a few. It would be
useful for the three main stakeholders to come to some agreement regarding
how much FGD gypsum is likely to be made/used/landfilled such that each
could then make their own decisions based on the same overall expectations.
This report was prepared in an effort to contribute to this shared
understanding.
The table of contents,
list of figures and list of tables for
this report is available for free download in .pdf format
Table of Contents, List of Figures and Tables (.pdf format)
Please
contact us for report pricing and availability.
|
