Dry Flue Gas Desulfurization System Market Trends

Growth Drivers

• Technological advancements of FGD: Technological advancements in dry flue gas desulfurization systems boost the dry flue gas desulfurization system market growth by increasing adoption in thermal power plants. For instance, in January 2024, published study on advances in process and materials for dry desulfurization of industrial flue gas highlights the newly developed dry desulfurization methods such as source/end control technologies and materials including calcium, magnesium, sodium, carbon-based, and transition metal oxide desulfurizers. Additionally, dry desulfurization is cost-effective owing to low transportation costs, employs smaller equipment, and is beneficial for low water pollution and lack of secondary pollution. This contributes to the rising popularity of the system fueling the dry flue gas desulfurization system market growth.

• Rapid industrialization in emerging economies: The rapid rate of industrialization in emerging economies and China benefits robust dry flue gas desulfurization system market growth. For instance, the coal imports of India have risen by almost 40% to reach 25.2 million tons in July 2024. The rising industrialization leads to increase in output of the power generation sector and cement manufacturing industry where the demands for FGD systems are high. The reliance on fossil fuels to meet energy demands increases sulfur dioxide emissions, which requires urgent adoption of FGD systems. Additionally, the benefits of a dry desulfurization system such as its lack of additional pollution increase adoption rates in power plants.

• Stringent environmental regulations: The stringent imposition of environmental regulations by national governments as per United Nations guidelines to be carbon neutral by 2050 has prompted operators to hasten the adoption of FGD systems in their operations. For instance, in April 2024, the National Green Tribunal (NGT) fined the Punjab Government in India USD 4.8 million annually for failure in the timely installation of FGD systems in the state’s thermal power plants.
  
  Manufacturers are increasingly seeking green energy solutions to meet the ESG requirements. Additionally, an increase in hiring of environmental consultancy services bodes well for the dry flue gas desulfurization market as professional consultants recommend FGD solutions as a vital component in reducing carbon footprints.

Challenges

• Competition with alternative technologies: Dry flue gas desulfurization system faces competition with alternative technologies such as wet desulfurization systems. Industries emitting high sulfur content often adopt wet FGDS systems over dry systems stifling the dry flue gas desulfurization system market’s growth. Technological advancements in dry FGD are poised to answer this challenge and increase adoption rates.

• High operational costs: Dry FGD systems can have high operational costs that can deter certain manufacturers from adopting these solutions. The high operational costs are associated with sorbent consumption and disposal. Lack of resources to manage the systems efficiently can also prove to be a barrier to adoption.