Firm sees muted gas hike from nuclear woes

By OGJ editors
HOUSTON, Mar. 18
-- Global lifts to power-generation investment over 2011-15 resulting from the nuclear crisis in Japan will amount to about $100 billion each for coal-fired boilers and gas turbines, says McIlvaine Co., Northfield, Ill.

The engineering-based consultancy expects post-disaster spending during the period to total $1.015 trillion for new coal-fired power plants and $307 billion for gas turbines.

“Despite the recent advances in extracting gas from unconventional sources such as shale, there will not be a massive shift to gas-fired power,” the firm says. “Gas can be converted into liquid products. Any big disparity between the price of oil and gas will eventually be eliminated by building gas-to-liquid plants. Since the price of oil is predicted to increase, gas will follow suit and be too expensive to be the main power-plant fuel.”

McIlvaine cut its 2011-15 capital-spending forecast for new nuclear plants to $100 billion from $360 billion. It raised its forecasts for wind power to $327 billion from $287 billion and for solar power to $154 billion from $134 billion because of the Japanese disaster.

“Longer term, the biggest shift will be from nuclear to coal,” McIlvaine says. “China is both a major coal producer and the largest potential investor in nuclear power plants. It has been quite successful in building efficient new coal-fired power plants.”

The firm said India also will feel pressure to increase its emphasis on coal.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...