Amount of profit = Amount of electricity produced in dollars - (Cost of the filters + Other costs)

Considering E9 and E10 Given filter replacement rate ------ 24 months Look at table KEY FILTER
STATS evident that both E9 and E10 are Cartridge Synthetic
E9 present in Middle east (60%) -> Arid climate
Filter servicing necessary for middle east as competitors do it
Middle east = 0.6x (potential of market snatching)
It is well known fact amongst gas turbine operators that high efficiency filters results in low operating
and maintenance cost while ensuring high power output from turbine.
Opportunity to capture >180MW market
Europe Bad market
Europe has only 20% market share for Synthetic Cartridge but ABC has good sales share there.
So emphasize on creating market for Synthetic Cartridge(E10) in Europe
Low growth rate -> less turbine installations -> greater power loss than Panel Synthetic -> difficult to
create market share among existing GT filters
Middle East Emerging market
Good growth rate -> more turbine installations 60-120 and 120-180 ->less power loss of 2% -> major
market share of 60% for Synth Cart GT filters.
But as Middle East is relatively new market for ABC needs to build customer relations and have
innovative marketing strategies
North America Main Target market
North America has 50% market share for Synthetic Cartridge with mixed climate -> E10
But North America gas turbine growth rate is expected at 0.4%
North America -> stagnant or less gas turbines -> market is saturated -> 24%client presence
North America share is big enough for Synth Cart filters even though growth rate for GT is 0.4%
Grab share from existing players -> assuming no new turbine installations are happening -> clients will
tend to make their turbines more efficient -> hence potential market
Rest of Asia Potential Market (after the product is well established)
Good GT growth rate ->above average turbine installations -> average share for Synt Cart filters ->ABC
has good client presence (16%)
Size of the Gas Turbine Filter market
If we get to know the number of turbines installed in each category, we can multiply the number with
the number of filters(10) required and figure out the total market size of each country.
Size of the addressable market
From the total market size of each country, multiply with the Synthetic Cartridge share of each country.

Go-to-Market Strategy:

http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_1_01
http://www.israelelectric.co.il/bin/ibp.jsp?ibpDispWhat=zone&ibpPage=ENGProjects&ibpDispWho=pp&ibpZone=pp&
Iran 53%
Saudi arabia 49%
UAE - 98%
Kuwait 29%

Middle Eastern countries possess about 40 per cent of natural gas reserves (wiki)

There are two primary forces at work that serve to increase the demand for natural gas in electric
generation. The increased demand for electricity in general, combined with the retirement of old nuclear,
petroleum, and coal powered generation plants, leaves a significant requirement for electric generation
that is to be filled by natural gas use. Natural gas is expected to fulfill the requirements for electric
generation for a variety of reasons, including:

Flexibility and Capital Investment - Natural gas electric generation plants can range in size
from large-scale generation plants down to very small-scale microturbines. Most nuclear and coal
fired power plants, however, are limited to larger-scale generation, and must produce larger
quantities of electricity in order to be economic. Because the demand for electricity is expected to
increase modestly over the next 20 years, many electricity suppliers are wary of making the large
capital investments necessary to build a coal or nuclear powered generating facility. Natural gas
fired plants, with lower capital investment costs and greater flexibility (including shorter
construction and lead times) are much more readily available and practical to add incremental
generation capacity as it is required.
Environmental Concerns - Most generation of electricity in the United States comes from coal,
mostly due to its extremely competitive price and domestic abundance. However, burning coal for
the generation of electricity is extremely polluting. Natural gas, however, is the cleanest burning
fossil fuel, and emits very few pollutants into the atmosphere. As public concern over air quality
increases, and more stringent emissions regulations are adopted, natural gas is the primary clean
burning, environmentally friendly alternative to coal generation.
Efficiency - Natural gas powered combined cycle generation units are extremely energy efficient.
Modern natural gas fired combined cycle generation units can approach 60 percent efficiency,
whereas traditional boiler units are usually only around 34 percent efficient, regardless of fuel
source. This means that using natural gas powered combined cycle technology allows for more
electricity produced per unit of natural gas used. This can both increase the cost-effectiveness of
the generation plant, as well as reduce the plants emissions (because less fuel is being burned).
Operational Flexibility - Natural gas fired electric generation systems used to meet short term
peak electricity demands have the advantage of being very operationally flexible. These natural

gas fired generators can be quickly and easily turned on and off, allowing for the timely
generation of electricity to meet short term requirements on a moments notice. Neither coal nor
nuclear generation plants have the ability to operate in this manner. Offering such flexibility in the
generation of peak electricity makes natural gas an extremely attractive option for meeting these
electricity requirements

Market trends Micro/Macro

Krenicki may have gone overboard with his 25-year bull market prediction. But the gas
turbine market looks positive for the next several years all the same.
Perhaps the most positive factor favoring that outcome is price. Natural gas remains
cheapas simultaneous supplies come on-stream around the world, thanks to new extraction
methods.
Low gas prices allow companies to build new gas-fired plants, generating electricity for
about six cents per kilowatt-hour. That compares to new coal-fired plants, which
consultancy firm Navigant reports would cost 7.5 cents for new coal-fired power plants.
As long as this price dynamic stays in place, the gas turbine market will keep firing on all
cylinders