Before the Enron and WorldCom debacles and subsequent telecom meltdown, the outlook for new power-plant construction had engineering and construction firms juiced about their future. But scandal, a slumping economy and prolonged anxiety about war in Iraq have short-circuited any near-term hope for sector expansion. If there is a silver lining for power engineers and contractors, it's in the pollution-control retrofit market. One consultant predicts the U.S. flue-gas desulfurization market will top $20 billion over the next decade. That may be high, but even the most bearish analysts peg the market at $13 billion to $14 billion. As long as powerplants burn coal, there will be a market for scrubbers to remove sulfur dioxide (SO_2) and other emissions controls. The U.S. Environmental Protection Agency reports that coal will continue as the predominant energy source for the next 20 years. Coal use will continue to grow, although not at the same rate as natural gas, says Jeffrey Holmstead, EPA's assistant administrator for air and radiation. New powerplants are more likely to be fueled by cheaper, cleaner burning natural gas, and renewables, he says.
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