3. About Me.
Senior at Southern
Illinois University
Graduating December
2015
B.S. Marketing,
Finance Minor.
United States Navy, 7th
Fleet.
3
4. About my Internship
Product Planning Intern
Cummins Power Solutions (Shoreview)
Manager- Ousmane Gueye
May,20/ August,10 2015.
4
5. Project Scope
Background
Gas gen-sets are available for various power generation applications and can
use different fuel sources. They can vary in sizes ranging from a few kilowatts
(kW) to more than 5 megawatt (MW) depending on the type of applications
Understanding regional trends, applications and attributes is key to developing
a winning strategy and fit-for-market product portfolio.
Scope
Identify regional market trends that pertains to the Gas Power Generation
industry.
5
11. Attractive Market Segments
Industrial & commercial [20%]
– Represent the greatest opportunity for gas engine sales.
– More requirements for 300- 500kW,1.4MW,2MW and
3MW.
– In Columbia Industrial application provide an opportunity for
gas engine sale.
11
12. Attractive Market Segments cont.
Landfill Gas & Biogas [15%]
– The sector is yet to take off, with total existing landfill gas
and biogas projects [using > 400kw gas engines]
Power Plant [20%]
– Most product range would be > 5MW.
12
14. Key Market Trends
A huge drive in some countries to utilize
biogas/biomass project.
Oil and gas companies using associated gas
replacing diesel.
Spark spread is getting attractive
CNG and LNG are available in most countries (not
yet feasible to replace diesel).
14
16. Electricity Consumption
16
0
1000
2000
3000
4000
5000
6000
1980 1985 1990 1995 2000 2005 2010 2012
BillionkWh
Electricity Generation/Consumption- North
America
Consumption Generation Distribution Losses
0
2000
4000
6000
8000
10000
12000
14000
China Russia US & Canada Western Europe
kWh/capita
Total Electricity Net Consumption /
Population (kWh per Capita )
17. North America
17
45%
13%
11%
11%
North America [2012]
Biomass
and
Waste
Coal
Gas
Geother
mal
Hydroele
ctric
Nuclear
Oil
-500
0
500
1000
1500
2000
2500
1980 1985 1990 1995 2000 2005 2010
Electricity(TWh)
Biomass and Waste Coal
Gas Geothermal
Hydroelectric Hydroelectric Pumped Storage
Electricity Generation By
19. Attractive Market Segment.
Commercial sector (large offices and hotels)
Critical infrastructure buildings( hospital, data
centers, wastewater facilities, food storage facilities,
etc.)
Small industrial sites e.g. the food processing and
smaller chemicals ( ethanol, pharmaceuticals and
consumer products like soap detergent, etc. )
industries. 19
20. Key Market Trends
Cogen will grow faster in < 1MW applications
relative to other power density nodes due to
decreasing deployment cost.
Units with higher power density are more desirable,
as designers are shifting from multiple 2MW nodes.
Fuel pressure requirements are being designed
around 2psi fuel inlet pressure which works for our
competitors and leaves CMI as not suitable. 20
25. Attractive Market Segment
Independent Power Producers (IPP)
Coal Mine Methane (CMM)
Industrial sites, e.g. steel, ceramics and cement
industries are better suited for 3-10MWe size
classes.
Health sector, large hotels, data centers and
commercial buildings.
25
27. Key Market Trends.
Mining market: trend towards replacing diesel fired
power at remote, off grid location with gas units.
Grid capacity opportunities via IPP and rental in
Indonesia.
Biogas opportunities likely in Thailand and Indonesia
Oil and gas opportunities in Thailand, Vietnam and
the Philippines.
27
29. Middle East
29
0
100
200
300
400
500
600
700
800
900
1000
1980 1985 1990 1995 2000 2005 2010 2012
BillionkWh
Electricity Genaration/Consumption -
Middle East
Consumption Distribution Losses Generation
0
2000
4000
6000
8000
10000
12000
14000
Africa China Middle East US & Canada
kWh/capita
Total Electricity Net Consumption /
Population (kWh per Capita )
30. Electricity
30
-50
0
50
100
150
200
250
300
1980 1985 1990 1995 2000 2005 2010
Electricity(TWh)
Electricity Generation By Source.
Biomass and Waste Coal Gas
Geothermal Hydroelectric Hydroelectric Pumped Storage
Nuclear Oil Solar Tide Wave
Wind
31. Attractive Market Segment-
Africa and Middle East
Commercial sector- Agricultural processing,
Manufacturing of textiles, Cement and tires.
Critical infrastructure buildings( data
centers,hospitals,wastewater facilities).
Key Market Trend
– Gas genset on Biogas project below 1MW are on higher
demand.
31
33. Attractive Market
Small industrial sites- food and drink, automotive
and chemical firms, application range would be 1- 5
Mwe.
Health sector, education and Commercial buildings.
There is significant potential for small scale( 400
kWe to 2MWe)gas engine CHP deployment in
hospitals.
33
34. Key Market Trends- UK
A shift towards smaller units- today 40-50 units is
being Installed/yr.
By 2020 70-80 units being Installed/yr (for 400kWe-
size bands).
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35. Key Market Trends/ Germany
There is a shift from biogas to natural gas.
– NG systems have increase sales due to support via CHP
Law.
Key market segments includes:
– Small industry- a relative robust segment for CHP.
– District heating.
– Commercial buildings.
35
36. Key Market Trends/ Turkey
Large genset market(> 5MWe) units sizes are most
preferred with a market share of 50%.
Key market segments:
– Power plants
– Textile industry
– Biogas & Landfill gas
– Light industry
36
37. Key Market Trends/ Russia
The engine size balance will shift steadily towards
larger engines by 2020 as more utility and DH
applications are developed.
– The main market today is for gas engine CHP in industrial
facilities.
Key market segments:
– Industrial sites
– Utility applications
– District heating(DH) modernization 37