Specialty Pipelines for Renewable and Alternative Energy Substances

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Specialty Pipelines for Renewable and Alternative Energy Substances

  1. 1. Get more info on this report!Specialty Pipelines for Renewable and Alternative Energy SubstancesDecember 1, 2010The world is rushing to harness alternative and renewable energy sources, and global specialty pipelineinfrastructure is jumping to keep up. SBI Energy estimates that the total global market for specialtypipelines will show year over year increases of 30% or more through 2015. This will result in a total globalmarket of over $3 billion by 2015. Because their chemical composition and transmission requirementscomposition are different from conventional fossil fuels, renewable fuels can be corrosive or destructive toexisting/conventional pipelines, fittings, seals, and other conventional pipeline-related infrastructure.Transport of renewable fuels such as biodiesel, ethanol, and biomethane along existing fossil fuelpipelines (diesel, jet fuel, gasoline, natural gas) is frequently impracticable due to concerns ofcontamination between renewable and petroleum fuel batches. Additionally, the distributed nature ofproduction operations for many renewable fuels, and for biomethane in particular, promise to support theconstruction of substantial new pipeline infrastructure.Similarly, enhanced oil recovery, carbon capture sequestration, and other emerging energy economiesrequire pipeline transport of carbon dioxide, commonly under very high pressure. Like ethanol, carbondioxide can be highly corrosive to conventional pipelines, resulting in increased leakage rates, high repaircosts, and general pipeline deterioration. The need to upgrade existing pipelines or construct newspecialty pipelines for these substances has led to the emergence of product markets for componentsand materials related to specialty pipelines.Substances carried in specialty pipelines - carbon dioxide, ethanol, biodiesel, and biomethane/biogas -have found market growth due to high petroleum prices, the development of enhanced oil recoverymethods using carbon dioxide injection, carbon capture and sequestration system development, thepresence or potential for carbon emissions penalties in several world markets, industry and public interestin biofuels, and renewable fuels standards mandating increasing production and blending with petroleumfuels. These factors are driving a general shift in the energy economies of several world markets, towardstechnologies and fuels that mitigate greenhouse gas emissions and ensure greater energy security forcountries with declining fossil fuel resources.As these new energy economies gain traction, economies of scale continue to develop in support ofrenewable and other alternative energy products. Particularly in areas where alternative energyproduction or consumption is highly concentrated (for example, carbon dioxide enhanced oil recoveryfields in Texas’s Permian Basin), pipelines are emerging as an efficient means of transport to reducecosts associated with truck, barge, or rail transportation. In anticipation of increased demand for pipelinetransport of alternative fuels and carbon dioxide, pipeline producers and operators have alreadyinvestigated or established construction and operations procedures for the transmission of carbondioxide, ethanol, biodiesel, and biomethane.
  2. 2. The design of specialty pipelines is, for the most part, based on existing technologies and materials usedin existing pipeline transmission operations, as well as the oil & gas, renewable fuels, and chemicalsindustries. Components of specialty pipelines not found as extensively in existing pipelines for naturalgas, petroleum, and petroleum products include protective coatings, large-diameter resin and plasticpipes, specialty industrial pumps and compressors for corrosive substances such as ethanol and carbondioxide, specialty valves, and technologies able to detect pipeline leaks. Due to the increased risk ofcorrosion or stress-related cracking of specialty pipelines that carry ethanol or carbon dioxide, specialtypipelines also represent a notable market for state-of-the-art technologies used for existing petroleumpipelines to detect leaks, minimize corrosive wear, pitting, lamination loss, or metal loss. The furtherdevelopment of commercial pipelines for next-generation energy sector substances will depend onongoing product specialization and operational experience with specialty pipeline components.Specialty Pipelines, Components, Materials and Global Markets contains comprehensive data on theworldwide market for specialty pipelines, their components, materials, and supporting technologies,including historic (2006-2010) and forecast (2011-2015) market size data in terms of the dollar value ofproduct shipments. The report identifies key trends affecting the marketplace, along with trends drivinggrowth, and central challenges to further market development. The report also profiles leadingmanufacturers and suppliers of specialty pipelines and that are most relevant to the specialty pipelinesindustry.Report MethodologyThe information in Specialty Pipelines, Components, Materials and Global Markets is based on data andinformation gleaned from interviews of government officials, industry insiders and professionals, as wellas data available from the U.S. Department of Commerce, other U.S. executive agencies, the U.S.Census Bureau, U.S. national laboratories, U.S. and global energy research institutions, the EuropeanCommission, along with information from trade associations, business journals, company literature andwebsites, Securities and Exchange Commission reportings, and research services such as SimmonsMarket Research Bureau.What You’ll Get in This ReportSpecialty Pipelines, Components, Materials and Global Markets makes important predictions andrecommendations regarding the near term future of this market. It pinpoints methods that current andprospective industry players can capitalize on existing trends, spearhead new trends, and identify andexpand into niche and specialty markets. No other market research report provides both comprehensiveanalysis and extensive, quality data that Specialty Pipelines, Components, Materials and Global Marketsoffers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables andgraphs.How You’ll Benefit from This ReportIf your company is already doing business in the specialty pipelines market, in associated manufacturingindustries, or is considering making the leap, you will find this report invaluable, as it provides acomprehensive package of information and insight not offered in any other single source. Pipelineoperators, companies vested in the midstream industry, biofuels producers/refiners/suppliers, producersand marketers will also benefit from key insights into the supply chain, projects worldwide, and industrysuppliers associated with specialty pipelines. The report provides an extensive review of markets forspecialty pipelines, including their components, from 2006 as well as projects and trends through 2015.This report will also help:  Marketing managers identify market opportunities and develop targeted promotion plans for
  3. 3. specialty pipelines, components, materials, and services.  Research and development professionals stay on top of competitor initiatives and explore demand for specialty pipelines, specialty pipeline components, materials, and associated transmission services.  Advertising agencies working with clients in the midstream, utility, oil & gas, industrial equipment manufacturing, and chemicals industries to understand the market for specialty pipeline components and materials, their application, and the product procurement and project construction process; to develop messages and images that compel consumers to invest in companies supplying or operating specialty pipelines  Business development executives understand the dynamics of the market and identify possible partnerships.  Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.Additional InformationMarket Insights: A Selection From The ReportEthanolBrazil and the United States represent the two largest national producers of ethanol and the largest globalconsumption markets. Both countries have fostered major ethanol industries due to the abundance ofagricultural ethanol crops (sugarcane and corn) and national regulation establishing significant marketsfor ethanol through transportation fuel blending. The market history of ethanol pipeline transportation islargely limited to Brazil where the Programa Nacional do Álcool (Proalcool) initiated by the Braziliangovernment in the 1970s provided support and amenable market conditions for the construction ofdedicated ethanol pipelines. In the United States, the development of markets for ethanol pipelinetransportation has been very recent.Specialty Pipeline ProjectsWhile multiple industry and market factors direct the development of the specialty renewable andalternative energy pipeline markets, the market volumes are ultimately determined by specialty pipelineconstruction and modification projects realized within the scope of this report (2006-2015). The followingsummaries for specialty pipeline projects worldwide provide greater detail regarding announced projectsreferenced elsewhere in this chapter and establish short-term market parameters and infrastructuredevelopment trends relevant to the projection of additional specialty pipeline projects through 2015.Projects are discussed below in terms of their preliminary siting, transportation capacity, development andconstruction schedule, associated investors and end users, obstacles to their completion, and role inregional renewable and alternative energy substance markets.Eastern Shelf PipelineKinder Morgan Energy Partners, L.P. purchased several units in the Katz oilfield within the Permian basinin 2006 and plans to begin CO2 injection to increase petroleum production by January 2011. With CO2-producing reservoirs and over 1,000 miles of CO2 transportation...
  4. 4. Project Development and Financing TrendsPipeline projects require significant financing due to their high capital costs that include equipmentprocurement, engineering, construction, right-of-way (ROW) land purchases. Midstream companies fundpipeline infrastructure projects through internal capital, project equity shares, and debt financing.Government support and incentives are likely to play a major role in the development of specialty pipelineprojects, as there are significantly higher technical and market risks associated with infrastructure projectsfor renewable fuel and alternative energy substance transportation. While overall financing conditions forthe midstream industry are relevant to specialty pipeline project development, specialty pipeline projectsremain subject to unique considerations including their risks and market feasibility.Large energy companies such as investor-owned public utilities or comprehensive oil companies involvedin the E&P, refining, transportation, and distribution of petroleum and natural gas benefit from large cashflows that can be reinvested or used to fund the completion of large infrastructure projects. Withmultination...Table of ContentsChapter 1: Executive Summary Scope Renewable and Alternative Energy Substances and the Role of Specialty Pipelines Specialty Pipelines Requirements and Components Environmental Impact of New Specialty Pipelines Market Assessment Methodology Market Origins and History Trends in Renewable and Alternative Energy Substances Production Specialty Pipeline Project Viability and Operational Profitability Specialty Pipeline Markets Carbon Dioxide Transportation Pipelines Market Figure 1-1: CO2 Transportation Pipelines Market Size, 2006-2015 (in million $) Ethanol Transportation Pipelines Market Figure 1-2: Ethanol Transportation Pipelines Market Size, 2006-2015 (in million $) Biodiesel Transportation Pipelines Market Figure 1-3: Biodiesel Specialty Pipelines Market Size, 2006-2015 (in million $) Biogas and Biomethane Transportation Pipelines Market Figure 1-4: Biogas and Biomethane Transportation Pipelines Market Size, 2006-2015 (in million $) Product Trends and Pricing Figure 1-5: U.S. Plastic and Steel Pipes Price Changes, 2001-2010 Figure 1-6: U.S. Special Purpose Coatings Price Changes, 2001-2010 Figure 1-7 U.S. Industrial Pump and Air/Gas Compressors Price Changes, 2001-2010 Figure 1-8: U.S. Industrial Valve Price Changes, 2001-2010 Industry Trends Growing Regional Demand for Renewable and Alternative Energy Substances Specialty Pipeline Components Supply Chain Figure 1-9: Specialty Pipeline Components Supply Chain Specialty Pipeline End Users Summary Figure 1-10: Specialty Pipelines Market Size, 2006-2015 (in million $)Chapter 2: Specialty Renewable and Alternative Energy Pipelines Scope
  5. 5. Pipeline Technology and Operation Role of Specialty Pipelines Greater Market Availability and Consumption of Renewable and Alternative Energy Substances Higher Efficiency Transportation of Renewable and Alternative Energy Substances Renewable and Alternative Energy Substances Carbon Dioxide Ethanol Biogas/Biomethane Biodiesel Specialty Pipelines: Requirements, Systems and Methods Resource Requirements Components Operational Requirements Demand for Specialty Renewable and Alternative Energy Pipelines Environmental Impact of New Specialty Pipelines Development of Pipeline Tract Areas Environmental Contamination through Pipeline Leaks Pipeline Explosion Risks Emissions SummaryChapter 3: Specialty Renewable and Alternative Energy Pipelines - Market Size and Growth Scope Market Assessment Methodology Project-Based Analysis Analytical Factors for Market Size and Growth Market Origins and History Carbon Dioxide Enhanced Oil Recovery Carbon Capture and Sequestration Ethanol Biodiesel Biogas / Biomethane Specialty Pipeline Projects Eastern Shelf Pipeline Table 3-1: Eastern Shelf Pipeline Green Pipeline Table 3-2: Green Pipeline Snøhvit Pipeline Table 3-3: Snøhvit Pipeline Central Florida Pipeline Table 3-4: Central Florida Pipeline PMCC Pipeline Table 3-5: PMCC Pipeline Plantation Pipeline Table 3-6: Plantation Pipeline Huckabay Ridge Biogas Project Table 3-7: Huckabay Ridge Biogas Project Brålanda Biogas Project Table 3-8: Brålanda Biogas Project Factors Affecting Market Size and Growth Greater Production of Renewable and Alternative Energy Substances Spatial Distribution of Renewable and Alternative Energy Substance Production and Consumption Specialty Pipeline Project Viability and Operational Profitability Specialty Pipeline Markets Market for Carbon Dioxide Transportation Pipelines
  6. 6. Figure 3-1: CO2 Transportation Pipelines Market Size, 2006-2015 (in million $) Table 3-9: World Market Shares for CO2 Transportation Pipelines (United States, European Union, Asia) Market for Ethanol Transportation Pipelines Figure 3-2: Ethanol Transportation Pipelines Market Size, 2006-2015 (in million $) Table 3-10: World Market Shares for Ethanol Transportation Pipelines (United States, Brazil) Market for Biodiesel Transportation Pipelines Figure 3-3: Biodiesel Transportation Pipelines Market Size, 2006-2015 (in million $) Table 3-11: World Market Shares for Biodiesel Transportation Pipelines (United States, European Union) Market for Biogas and Biomethane Transportation Pipelines Figure 3-4: Biogas and Biomethane Transportation Pipelines Market Size, 2006-2015 (in million $) Table 3-12: World Market Shares for Biogas and Biomethane Transportation Pipelines (United States, European Union, Asia) Market for Specialty Pipeline Lengths Figure 3-5: Pipeline Lengths Market Size, Steel, 2006-2015 (in million $) Table 3-13: World Market Shares for Steel Pipeline Lengths (United States, European Union, Brazil, Asia) Figure 3-6: Specialty Pipeline Lengths (Polymers), Market Size, 2006-2015 (in million $) Table 3-14: World Market Shares for Polymer Pipeline Lengths (United States, European Union, Brazil, Asia) Market for Specialty Pipeline Pumps and Compressors Figure 3-7: Specialty Pipeline Pumps Market Size, 2006-2015 (in million $) Table 3-15: World Market Shares for Specialty Pipeline Pumps (United States, European Union, Brazil, Asia) Figure 3-8: Specialty Pipeline Compressors Market Size, 2006-2015 (in million $) Table 3-16: World Market Shares for Specialty Pipeline Compressors (United States, European Union, Brazil, Asia) Market for Specialty Pipeline Flow Control, Leak Detection, and Management Systems and Technologies Figure 3-9: Specialty Pipeline Flow Control Equipment Market Size, 2006-2015 (in million $) Table 3-17: World Market Shares for Flow Control Equipment (United States, European Union, Brazil, Asia) Figure 3-10: Inline Pipeline Management and Leak Detection Systems Market Size, 2006-2015 (in million $) Table 3-18: World Market Shares for Inline Pipeline Management and Leak Detection Systems (United States, European Union, Brazil, Asia) Summary Figure 3-11: Specialty Pipelines Market Size, 2006-2015 (in million $)Chapter 4: Specialty Renewable and Alternative Energy Pipelines - Market and Product Trends Scope Product Trends and Pricing Specialty Pipeline Materials Figure 4-1: U.S. Plastic and Steel Pipes Price Changes, 2001-2010 Specialty Pipeline Coatings Figure 4-2: U.S. Special Purpose Coatings Price Changes, 2001-2010 Specialty Pipeline Compressors and Pumps Figure 4-3: U.S. Industrial Pump and Air/Gas Compressors Price Changes, 2001-2010 Flow Control, Pipeline Management, and Leak Detection Systems Figure 4-4: U.S. Industrial Valve Price Changes, 2001-2010 Figure 4-5: U.S. Industrial Process Instruments Price Changes, 2001-2010 Industry Trends Midstream Industry Growth and Consolidation, 2001-2008 Financial Crisis and Global Economic Turndown, 2008-2009
  7. 7. Developments Leading towards Specialty Renewable and Alternative Energy SubstancePipelinesProject Development and Financing TrendsCost and Pricing Trends for Renewable and Alternative Energy SubstancesCarbon DioxideFigure 4-6: West Texas Intermediate Average Monthly Spot Prices for Crude Petroleum, January2001-August 2010EthanolFigure 4-7: Ethanol Fuel and Gasoline Prices, U.S. Midwest and East CoastFigure 4-8: Ethanol Fuel Prices in Nebraska (United States) and São Paulo State (Brazil), 2001-2010Figure 4-9: U.S. Rail Transportation Price Changes, 2001-2010BiodieselFigure 4-10: Average U.S. B20 (20% Biodiesel / 80% Petroleum Diesel) and Petroleum DieselPrices, 2001-2010Figure 4-11: Average German Biodiesel (100%; B100) and Petroleum Diesel Prices (in Euros).2005-2009BiomethaneFigure 4-12: Average U.S. Residential, Commercial, Industrial, Power, and Vehicle ConsumerNatural Gas Prices, 2001-2010Figure 4-13: Average EU Residential, Commercial, Industrial, Power, and Vehicle ConsumerNatural Gas Prices, 2001-2010Growing Regional Demand for Renewable and Alternative Energy SubstancesCarbon Dioxide - United StatesFigure 4-14: U.S. Carbon Dioxide Pipeline Deliveries for Enhanced Oil Recovery (EOR), 2001-2010Figure 4-15: Operationally-Active U.S. Carbon Capture and Sequestration (CCS) Projects, 2001-2010Carbon Dioxide - European UnionFigure 4-16: Operationally-Active EU Carbon Capture and Sequestration (CCS) Projects, 2001-2010Carbon Dioxide - BrazilCarbon Dioxide - AsiaFigure 4-17: Operationally-Active Carbon Capture and Sequestration (CCS) Projects in Asia,2001-2010Ethanol - United StatesTable 4-1: EISA Renewable Fuel Volume Requirements, 2010 (billion gallons)Figure 4-18: U.S. Ethanol Fuel Consumption, 2001-2010Ethanol - BrazilFigure 4-19: Brazilian Ethanol Fuel Consumption, 2001-2010Biodiesel - United StatesFigure 4-20: U.S. Biodiesel Consumption, 2001-2010Biodiesel - European UnionFigure 4-21: EU Biodiesel Consumption, 2001-2010Biomethane - United StatesFigure 4-22: Operationally-Active U.S. Biogas / Biomethane Production Projects, 2001-2010Figure 4-23: New U.S. Biogas/Biomethane Production Projects and U.S. Wellhead Natural GasPrices, 2001-2010Figure 4-24: New U.S. Biogas / Biomethane Production Projects with Pipeline Injection and U.S.Wellhead Natural Gas Prices, 2001-2010Biomethane - European UnionFigure 4-25: EU Biogas Production, 2001-2010Figure 4-26: EU Biogas / Biomethane Production Projects with Pipeline Injection and Average EUResidential/Commercial Consumer Natural Gas Prices, 2001-2010Summary
  8. 8. Chapter 5: Specialty Pipelines and Components: Distribution and Promotion Scope Specialty Pipeline Components Supply Chain Figure 5-1: Specialty Pipeline Components Supply Chain Renewable and Alternative Energy Substance Supply Chain Figure 5-2: Ethanol Fuel Supply Chain Figure 5-3: Biodiesel Fuel Supply Chain Figure 5-4: Biogas/Biomethane Supply Chain Figure 5-5: Carbon Dioxide Supply Chain Specialty Pipelines Project Promotion SummaryChapter 6: Competitive Profiles Scope Methodology and Selection of Profiles3M Corporate Background Product Portfolio Performance Figure 6-1: Annual Revenues of 3M, 2006-2010 (in billion $) Company News Acquisitions and Divestitures Outlook Personnel ChangesAmeron Corporate Background Product Portfolio Performance Figure 6-2: Annual Revenues of Ameron, 2006-2010 (in million $) Company News Acquisitions and Divestitures Outlook Personnel ChangesAshland Corporate Background Product Portfolio Performance Figure 6-3: Annual Revenues of Ashland, 2006-2010 (in billion $) Company News Acquisitions and Divestitures Outlook Personnel ChangesBoreal Laser Corporate Background Product Portfolio PerformanceFlowserve Corporate Background Product Portfolio Performance Figure 6-4: Annual Revenues of Flowserve, 2006-2010 (in billion $) Company News Acquisitions and Divestitures Outlook Personnel ChangesGE Oil & Gas
  9. 9. Corporate Background Product Portfolio Performance Figure 6-5: Annual Revenues of General Electric Oil & Gas, 2006-2010 (in billion $) Company News Acquisitions and Divestitures Innovation OutlookInternational Protective Coatings Corporate Background Product Portfolio Performance Figure 6-6: Annual Revenues of Akzo Nobel Performance Coatings, 2006-2010e (in billion €) Company News Acquisitions and Divestitures Innovation Outlook Personnel ChangesSiemens Corporate Background Product Portfolio Performance Figure 6-7: Annual Revenues of Siemens, 2006-2010 (in billion €) Company News Acquisitions and Divestitures Innovation OutlookSulzer Pumps Corporate Background Product Portfolio Performance Figure 6-8: Annual Revenues of Sulzer Pumps, 2006-2010e (in billion CHF) Company News Outlook Personnel ChangesTyco Flow Control Corporate Background Product Portfolio Performance Figure 6-9: Annual Revenues of Tyco Flow Control, 2006-2010e (in billion $) Company News Acquisitions and Divestitures Outlook Personnel Changes Pipeline Operator ProfilesKinder Morgan Corporate Background Business Activities Performance Figure 6-10: Annual Revenues of Kinder Morgan, 2006-2010e (in billion $) Company News Acquisitions and Divestitures Specialty Renewable and Alternative Energy Pipeline ProjectsPetrobras Corporate Background Business Activities
  10. 10. Performance Figure 6-11: Annual Revenues of Petrobras, 2005-2009 (in billion $) Company News Acquisitions and Divestitures Specialty Renewable and Alternative Energy Pipeline ProjectsUniduto Logística Corporate Background Business Activities Company News Specialty Renewable and Alternative Energy Pipeline ProjectsChapter 7: End Users Scope Specialty Pipeline End Users Carbon Dioxide Ethanol Biodiesel Biogas/Biomethane SummaryAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=2793780US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004

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