State-owned engineering company Bhel is planning to get into manufacturing of high-end circulating fluidised bed combustion (CFBC) boilers and looking for a technology partner. The CFBC boilers, which can run even on low-quality coal, are in great demand by both utilities and captive power generators .
The domestic market size for these fuel efficient equipment is estimated at Rs 40,000 crore a year and growing fast as reserves of high-quality coal are depleting in the country. Cost of these equipment is normally 15-20% higher compared to the normal power plants but in high demand from user industries, according to industry sources.
?We are targeting market in the 150 mw category, especially the captive power generation. These equipment would be able to accept more variation in coal quality. Given the uncertainty about coal availability, we are expecting a big growth in this segment,? Bhel chairman and managing director BP Rao told FE.
Currently, the market for CFBC equipment in India is estimated at 8,000 mw a year. However, with the government tightening environmental regulations, the market size is projected to grow fast in coming years.
?This is a replacement technology and should grow at a much faster pace than the power sector itself,? an industry expert said.
Bhel is already manufacturing the equipment but is looking at improving the technological offering through an overseas trechnology partner. It is in initial talks with global enginneering and equiipment giants such as Alstom, Forster Wheeler and Lurgi, which are are among the key suppliers of this technology.
CFBC equipment account for a big chunk of Bhel’s revenue from the overseas market. Bhel has been expanding its power equipment manufacturing capacity.