FGD and DeNOx
NEWSLETTER

September 2021
No. 520

Table of Contents

MARKETS

·        Large Growth in Air, Water, and Combustion Revenues in the Power Industry

·        BECCS at All the World’s Coal Plants Would Bring CO₂ Levels Down to 360 ppm

·        Keep Up With All the Power Industry Changes Impacting Flow and Treat Markets

·        Many Large Growing Market Niches for Hydrogen Flow and Treat Products

·        Pursuing the Most Profitable Flow and Treat Niche Markets

COAL – U.S.

·        Improve Operations By Detuning Low NO_x Burners and  Rely on SCR

COAL – WORLD

·        TUNA Corporation is Active in World Air Pollution Control Products For Power Plants

BIOMASS

·        WESPS and RTOS Used for APC in Many Pellet Plants in BC

·        Biomass Boilers Can Use RCSR For NO_x Reduction and Avoid Sodium Plugging of Catalysts

·        Andritz Has Decades of SCR Experience

·        Andritz FGD Plus Provides an Argument for the Bubble Bath Approach

BUSINESS

·        MRC Global  Up 14% in Second Quarter

·        Fuel Tech Second Quarter Revenues Up 18.6%

MARKETS

Large Growth in Air, Water, and Combustion Revenues in the Power Industry

Air, water, and combustion (AWC) product purchases for a wind or solar plant are small compared to those for  a coal plant. Since the projected capacity for wind and solar is large and  the projected  capacity increases for coal and nuclear plants are modest, it seems logical that the power AWC markets will be unattractive compared to other markets.

There are two reasons why the market will be attractive. The first is that it is a very large market presently. The second is that the net zero CO₂ initiative will require technologies with higher AWC expenditures than present coal plants.

The International Energy Agency has set up a scenario to reach net zero CO₂ emissions by 2050.

McIlvaine has its own scenario with a higher reliance on biomass with carbon capture and sequestration ( BECCS).

The McIlvaine scenario would also end up with net zero CO₂ in 2050 but with a different combination of fuels.

BECCS has twice the CO₂ reduction impact of nuclear due to removal of CO₂ from the air prior to burning and sequestration. Solar and wind have a smaller impact on a net CO₂ reduction basis per GW due to their lower capacity factors.

The technologies to provide high capacity factor electricity such as nuclear, coal, BECCS, hydrogen and geothermal require lots of AWC Products. This is illustrated on a comparison per kW.

Markets and projects involving power plant AWC are covered in detail in McIlvaine publications.

The Utility Tracking System provides weekly project coverage along with profiles of thousands of AWC purchasers.

http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system

There are market forecasts for instrumentation, pumps, valves, FGD, SCR, cross flow membranes, liquid microfiltration, fabric filters, precipitators, fans, and compressors described under  www.mcilvainecompany.com and then markets at the top of the page.

Bob McIlvaine can answer your questions at 847 226 2391. rmcilvaine@mcilvainecompany.com

BECCS at All the World’s Coal Plants Would Bring CO₂ Levels Down to 360 ppm

CO₂ levels have risen from 360 ppm to over 400 ppm in just 20 years. The reduction can be just as swift.

With BECCS (BioEnergy Carbon Capture and Sequestration), converted coal plants would take CO₂ out of the atmosphere as rapidly as they once added it. So in just 20-30  years the level could be reduced to 360 ppm.

Despite reduction in coal-fired capacity in some countries coal will remain a major power plant fuel. The IEA 2021 forecast assumes global GDP growth of 5.2% this year. Coal consumption will rise 2.6% to 7,432 Mt  as a result of increased demand in China, India, and Southeast Asia. The 2021 outlook includes strong GDP growth of 8.2% in China that will drive additional coal use, particularly in the electricity sector. Likewise, the rebound of electricity demand in Europe in 2021 will put a temporary brake on the structural decline of coal. Higher natural gas prices for power generation in the United States could make annual coal demand increase for the first time since 2013.

In 2003 world coal capacity was only 1.3 million MW.  But this increased to 2.1 million MW in 2020.  It is projected that coal fired capacity will reach 2.2 million MW in 2050 given the present plans. Retirements in Europe and the U.S will be offset by increases in Asia and Africa.

The cost of conversion of an existing coal fired plant such as Drax to BECSS is far less than building a green field plant. Therefore existing coal plants should be viewed as a resource to be preserved should the maximum amount of greenhouse gas reduction be needed.

If all coal-fired plants were converted to bioenergy the coal fired power plant contribution would drop to 0.  If all these plants installed BECCS the contribution would be a negative 7 billion tons of CO₂ per year. This is an amount sufficient to ensure reduction in ambient CO₂ levels given modest reduction from other sources.

CO₂ Contribution from Coal-fired Plants with Bioenergy

With/Without Sequestration

The International Energy Association predicts that bioenergy use will be greater than oil and contribute one third of the world’s total energy. Much of the energy use in developing countries is biomass which is used for cooking and heating fuel. IEA also says that the technical potential for biomass is as great as the present coal use (388 EJ)

Drax is leading the way.  It has converted a 4000 MW coal-fired power plant to burn biomass. It owns wood pelletizing operations in the U.S and is moving forward with carbon capture and sequestration.

It is also working on related technologies such as manufacture of food pellets and use of turbines using gasified biomass. A number of other projects are moving forward including industrial projects in Europe where there is a readily available sequestration resource. In some cases the beneficial use of CO₂ for EOR is practical due to the location.

The opportunity is particularly attractive for those Asian countries who will build coal-fired plants in the next 10 years. If the potential for eventual conversion to BECCS is considered during the design, the conversion can be made more economic. For example, fluid bed boilers are more fuel flexible than coal fired boilers.

 BECCS will create large markets for many types of air, water, and energy products.

McIlvaine is forecasting air, water, and energy products for conversion of coal plants to BECCS along  with geothermal, combined cycle gas plants, hydropower, hydrogen, and particulate heat exchanger storage. These are all major applications for these products.

McIlvaine is also evaluating wind, solar, and battery storage which in general would reduce the total market for air and water products.

Weekly coverage of developments is provided in http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system

Customized forecasts for any flow or treat product is available. For information contact Bob McIlvaine  rmcilvaine@mcilvainecompany.com  Cell 847 226 2391

Keep Up With All the Power Industry Changes Impacting Flow and Treat Markets

With new hydrogen, storage and BECCS options the power industry and the flow and treat needs are changing  at a pace not seen since the 1980s and Clean Air Legislation.

At that time the Utility Tracking System with weekly alerts, database of each plant and webinars focused on decision making became a widely used service.

This approach serves well for all the rapid changes underway in the power industry today.

The 20 page weekly Alert has the latest developments.

You can read the Alert and then find more information with an easy search. In fact a free search of headlines is included as part of the explanation of the service at

http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system

Bob McIlvaine can answer your questions at rmcilvaine@mcilvainecompany.com or 847 226 2391

Many Large Growing Market Niches for Hydrogen Flow and Treat Products

There is evolving a significant hydrogen market for flow and treat products. A number of technologies and applications are being applied. There is considerable funding from governments who believe that hydrogen is an important option to archive zero net carbon emissions by 2050.

There is an opportunity for flow and treat system and product suppliers to develop unique products which can boost EBITA as well as revenues. But in addition to the uncertainty about applications and technologies there is no clear ranking of potential users or suppliers of the  hydrogen.

Another challenge is the likely fragmentation into many sub segments which have different total cost of ownership factors and therefore unique product requirements.

McIlvaine is continually compiling information on these unique requirements and the products which are best suited to meet the needs. This data is being used to provide extensive forecasts by product,  purchaser, application, industry, and geography.

The sales of flow and treat products to produce hydrogen in 2050 could range from $15 billion to $50 billion. This market will to some extent  be shaped by the suppliers. Other methods of energy storage will compete. To the extent that the flow and treat industry can improve the economics of hydrogen the larger the market share for this fuel option.

Individual flow and treat suppliers will need to determine their specific potential revenues and EBITA depending on a number of variables including

·        Total amount of hydrogen consumed

·        Percent used in different industrial sectors

·        Sources of power

·        Geographical distribution

·        Technologies utilized to make the hydrogen

The energy source to produce hydrogen has significant impact on the size of the flow and treat market and the competitive position of specific flow and treat companies. 

Suppliers such as Andritz with strengths in hydropower will benefit to the extent that hydropower is the energy source.

Wind and solar plants do not use many flow and treat products. Coal and biomass with carbon sequestration would use the most.

In the case of bioenergy hydrogen can be just one of the products produced.

The energy source can also shape the geographical markets. Hydropower opportunities occur in areas of the world which can differ greatly from that of other energy sources.

McIlvaine provides detailed weekly tracking of hydrogen activity and customized forecasts including market share projections.

Details on the approach to continually analyze and forecast the market niches and the unique products which best serve that niche are described at Hydrogen  Flow and Treat Market Niches.

For more information contact Bob McIlvaine at 847 226 2391 or rmcilvaine@mcilvainecompany.com

Pursuing the Most Profitable Flow and Treat Niche Markets

There is a $300 billion high performance segment of the flow and treat market. The most profitable strategy for the segment is to develop superior products and then validate their use in each niche. McIlvaine is helping suppliers to determine each of these thousands of market niches and forecast market share based on comparative true costs for the choices. 

The program is described in this video https://youtu.be/JPCduQKtJVY

The accompanying power point presentation can be viewed here:

Most Profitable Market Support Services

McIlvaine is helping suppliers match the benefits of their designs with the niche needs.

http://home.mcilvainecompany.com/index.php/30-general/1658-holistic-content-marketing-program

This website has total cost of ownership  information on many niches. But the comprehensive information needed will be supplied by publishers and conference organizers. A collaborative program was initiated with INDA and their International News magazine in 2019.  A number of articles have been published and are linked below.

Articles are beginning to appear in a number of other magazines. Several examples of true cost analysis at exhibitions are also linked below.

More information on this program can be provided by Bob McIlvaine at 847 226 2391 or rmcilvaine@mcilvainecompany.com

COAL – U.S.

Improve Operations By Detuning Low NO_x Burners and  Rely on SCR

Suzette M. Puski, formerly with Babcock Power Environmental (BPE), a division of Babcock Power, told POWER.

“It’s important to look at the whole picture and not just focus on one aspect of the plant,” Puski said. “It is important to engage plant personnel who cover generation, air quality control, operations, and maintenance to understand the impact of a technology across the plant.”

BPE is known as a leader in selective catalytic reduction (SCR), which focuses on reducing emissions of nitrogen oxides (NO_x). The company also provides wet scrubber technology, which helps achieve reductions in SO₂, along with dry flue gas desulfurization systems for controlling acid gases. BPE also has advanced technologies for controlling emissions of mercury. Puski said technology is important for emissions reduction but noted plant operators should look at other procedures to optimize performance.

“For example, detune low-NO_x burners and rely on downstream SCR to control NO_x emissions to reduce LOI [loss on ignition] and improve boiler maintenance and ash marketability,” Puski said. “Double-check your assumptions. You might find out you have problems you took for granted could not be resolved when in fact that is not true. It also is important to recognize where the unit is going to operate to target how efficiency can be improved for specific run conditions. How the system was tuned at full load may not be efficient at reduced loads or with current fuel mixes.”

EPA’s Affordable Clean Energy (ACE) rule lists several technology options for controlling pollutants, including such things as rebuilding, or replacing boiler feed pumps, steam turbine blade path upgrades, and utilizing industry-best operations and maintenance practices.

COAL – WORLD

TUNA Corporation is Active in World Air Pollution Control Products For Power Plants

We were updated on the activities of Tuna by Joe Wang. He was formerly with Longking and has been quoted many times in our publications. He now is with TUNA.

TUNA is the first Chinese catalyst manufacturer who has both honeycomb-type and plate-type catalyst with an annual production capacity of 38,000m³, of which honeycomb-type catalyst represents 18,000m³ and plate-type catalyst represents 20,000m³. TUNA also owns independent R&D technology of catalyst regeneration. TUNA's catalyst has been widely applied to the Top-5 power groups (Huaneng, Huadian, Guodian, SPIC and Datang), local power plants with more than 200 large and medium size flue gas denitration projects.

The company supplied a vacuum Belt Filter for #FGD system of Vindhyachal Super Thermal Power Project (STAGE -Ⅰ2×3×210MW + STAGE - Ⅱ 2×500-MW) in India. 

BIOMASS

WESPS and RTOS Used for APC in Many Pellet Plants in BC

British Columbia is arguably the largest supplier of wood pellets for biomass combustion. It has required air pollution controls on all plants to control dryer and other emissions

There are five main types of air pollution control systems applied to control the emissions from the pellet operations:

a.   Centrifugal collectors or Cyclones —used either alone or to pre-clean a gas stream that is subsequently passed through a WESP, scrubber or baghouse.

b.   Electrostatic precipitators (Wet ESPs–(WESP) rather than dry ESP are used for wood dyers or other processes that generate higher condensable organic emissions.

c.    Fabric filters or baghouses

d.    Scrubbers

e.    VOC combustors (e.g., regenerative thermal oxidizers –RTO) if the volatile components are of sufficient strength.

 Due to the initial capital investment required in high voltage rectifier sets for ESPs and the water treatment system required for WESPs, these technologies are generally only used in larger systems. For example, in North America, ESPs are usually not used on combustors that have outputs of less than 3 MW. In the case of pellet dryers, WESP are generally not employed on pellet plants with an output of less than 100,000 t/yr [PAB 2009]. Although there is no direct correlation between a 3 MW combustor and a 100.000 t/yr pellet plant, the above statement serves to give an indication of the scale of operation where these technologies are employed.

In the US, WESPs have been installed in new pellet plants to pre-clean dryer flue gas for subsequent VOC reduction in regenerative thermal oxidizers (RTO). In recent installations of WESPs on pellet mill dryers, the suppliers have guaranteed filterable PM concentrations of 19 to 20 mg/m³. They have, however, avoided guaranteeing CPM/VOC emissions (at least in BC) as these are so dependent on the operation of the dryer and the raw material used. By itself (without a thermal oxidizer), WESPs can be expected to reduce VOC emissions somewhat, depending on the polarity of the compounds, and is estimated to achieve about a 50% reduction of organic (and odorous) substances, such as formaldehyde and terpene.

Various types of fabric filters or baghouses have been successfully used for particulate control. With the correct design and choice of fabric, particulate control efficiencies of over 99% can be achieved even for very small particles (1 micrometer or less). The lowest emission rate for large wood-fired boilers controlled by fabric filters reported in the RBLC database is ~10 mg/m3 (0.01 lb./MMBTU). This is consistent with expected control efficiencies of close to 98% and is supported by tests on BC units. Because of their design (large surface area of bags and longer residence times), fabric filters may capture a higher fraction of ultrafine particles than ESPs. Cleaning intensity and frequency are important because the build-up of a dust cake is significant in improving the ability of the fabric to capture fine particulate (i.e., cleaning and removal of the dust cake can temporarily reduce the gas cleaning efficiency). Baghouses are not applicable to streams, such as dryer exhaust gases since high moisture content and organic compounds can condense on and plug the bags. They are, however, applicable for the dryer dust from pellet mill screens, and post dryer hammermills, and as an addon to the cyclone separators used on material air conveying systems transporting the finer dryer wood dust. Operating experience with baghouses at pellet mills indicates that there is a fire risk, due to the presence of unburned wood dust or CPM. Such fires have already happened in the BC pellet industry. Additional measures are therefore sometimes required, such as using a cyclone or multicyclone to pre-treat the gas, or “fire eyes” (spark detectors) and water sprays. In pellet mills, the collected dust is often used as dryer fuel in suspension type burners.

Regenerative thermal oxidizers are used to control VOC emissions, including CPM, and are currently being prescribed for some very large U.S. pellet plants. Formaldehyde is one of the hazardous air pollutants emanating from wood dryers requiring control in the U.S. as a result of the ”New Source Review” requirements for toxic air pollutants. The U.S. Federal maximum achievable control technology (MACT) applies when a source emits more than 25 tons of VOCs per year. Individual States can set more stringent limits. For example, in Washington State, facilities must reduce formaldehyde emissions if they emit more than 32 lb./year. Since the early 1990s, thermal oxidizers have been in use in the U.S. to control emissions from wood dryers in the panelboard industry.

file:///C:/Users/bobmcilvaine/Downloads/moepelletindustry051410%20(1).pdf

Biomass Boilers Can Use RCSR For NO_x Reduction and Avoid Sodium Plugging of Catalysts

Babcock Power recommends a hybrid RTO-SCR for biomass boilers Since the catalyst is downstream of particulate removal there is no catalyst plugging due to sodium. A cement plant in Germany has also decided to install one of these RSCR units.

The revision of the 17. BimSchV in Germany, which reduced NO_x limits to 200 mg/Nm³ (10% O2, dry), triggered a flood of upgrades to lower emissions.

Opterra Zement GmbH, a subsidiary of CRH, decided to install RSCR systems from CTP on each of the two kilns in their plant in Karsdorf, Germany, after comparing all solutions available on the market.

Each system is designed for 270,000 Nm³/h and will be located downstream of the baghouse, that will be converted from ESP to bag filter. Each RSCR weighs about 400 tons and is designed with 27,600 blocks. The two RSCR systems will be the first of their kind in cement  and combine the advantages of the regenerator with an SCR in a novel way. 

The RSCR makes short work of NO_x, cutting emissions by more than 85%, while maintaining the NH3 emissions below 30 mg/Nm³ (10% O2, dry). The existing SNCR system, currently used for NO_x control, will be taken offline. The RSCR system consists of three pairs of towers, each filled with ceramic honeycombs. The catalyst is arranged between the two heat exchanger beds in each of the three pairs. Cold waste gas enters the heat exchanger from below and is heated on the way into the reaction chamber, which is above the heat exchangers. Above the ceramics, the reducing agent, e.g. ammonia water, is finely dispersed into the gas stream through a distribution grid, before the gas passes through the SCR catalyst. The cleaned gas then passes through another heat exchanger and leaves the system. 

In order to cover energy losses of the system and evaporate the reducing agent, an external loop is required. Gases are drawn from the reaction chamber downstream of the catalyst. They are heated up in a separate burning chamber before the reducing agent is injected. The mix is then brought back to the reaction chamber upstream of the catalyst and introduced through the distribution grid. 

Since the regenerator provides unparalleled thermal efficiency, the amount of fuel to be added is kept to a minimum. Therefore this RSCR does not rely on the availability of additional heat in the plant and a costly heat transfer system to utilize it, which saves significant cost.

Andritz Has Decades of SCR Experience

Andritz Air Pollution Control was among the first companies in Europe to successfully employ Selective Catalytic Reduction (SCR) technology. The company now has numerous references in the DeNOx/SCR sector, which encompass a variety of applications. In addition to use in power plants (high dust configuration), they also have successfully employed selective catalytic reduction (SCR) technology for waste incineration and other industrial processes.

In 2017, Andritz had received an order from Currenta GmbH & Co. OHG to deliver a SCR DeNOx plant (Selective Catalytic Reduction) for the hazardous waste incineration plant in Bürrig at its CHEMPARK site in Leverkusen, Germany.

The DeNOx plant  was built to treat the flue gases from the sewage sludge incineration line with multiple-hearth furnace VA3 and the two lime kilns VA1 and VA2. Completion of the project occurred in  2018.

By modernizing the plant, Currenta can ensure that the NOx limit, which was lowered from 200 to <100°mg/Nm³ on January 1, 2019 in accordance with 17.BImSchV (Federal Immission Protection Act), is met, and even generate significantly lower flue gas emissions than the limits required by the European regulations thanks to the new Andritz DeNOx plant.

Currenta manages and operates one of the largest chemical complexes in Europe – the CHEMPARK, with its sites in Leverkusen, Dormagen, and Krefeld-Uerdingen. As a modern service company with around 3,400 employees, Currenta’s service portfolio includes supply of materials and utilities on-site, a wide range of analytical services, modern environmental management, comprehensive infrastructure services, and reliable safety concepts.

McIlvaine has been reporting on Andritz SCR activity since 1986.

SCR technology for NO_x control - McIlvaine Company

https://www.mcilvainecompany.com   › Tree › SCR...

Andritz`s first reference for Selective Catalytic Reduction (SCR) of. NO_x was started up in the year 1986 at the coal-fired power plant. Mellach/ Austria. ▫ ... 37 pages

Andritz FGD Plus Provides an Argument for the Bubble Bath Approach

With the acquisition of APC technology from GE Andritz has a number of different FGD scrubber designs.

Andritz says a very robust and reliable FGD system was introduced with the FGD Plus design. Based on long term investigations on lab and pilot scale, but especially with an industrial size pilot plant at a lignite-fired power plant in Germany, a new and innovative design was developed. The first applications and long-term experience in Germany and Asia confirm these findings and show a clear advantage over comparable designs on the market.

·        Optimized combination of favorable mass transfer regimes from inlet to outlet of absorber

·        Easy to implement and update existing systems

·        Implementation time

·        Robust design, absolutely blocking resistant

·        Minimized operation and maintenance costs

·        Designed for optimized removal of SO_x, dust, and aerosol

http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/ANDRITZ%20PART%202.pdf

The Shower Versus the Bubble Bath Principle for FGD

The scrubbing choices can be likened to a bubble bath versus a shower. It takes a lot more water for the same level of cleanliness with the shower.

The original FGD scrubbers used the bubble bath principle. Marbles or ping-pong balls were supported by a screen or perforated plate. A turbulent or foamy zone created in this matrix provides a large liquid-gas interface area. The energy required to form this matrix can be varied from 2 in to over 6 in. w.g.

The original suppliers of the fluid sphere scrubbers were UOP and Environeering. B&W partnered with UOP, and Combustion Engineering partnered with Environeering to supply the world’s first limestone scrubbing systems for power plants.

The coal-fired power plant temperature excursions resulted in shattered glass marbles and melted ping-pong balls. The solution taken by B&W was to take out the balls and rely on the turbulent layer created above the perforated support tray. Presently, the company offers one or two tray designs. B&W has been a leading FGD supplier over the years.

The bubble bath approach is also used by Chiyoda. The flue gas blasts into the sub surface of the pool and creates a foamy zone. There are large numbers of these scrubbers in operation in Japan and the U.S.

Environeering switched from marbles to rod decks in either a downflow or upflow mode. In the compact downflow mode both particulate and acid gas are captured. A number of companies offer rod deck designs.

The choice between a spray tower and these turbulent zone designs is a choice between increased fan or pump horsepower. The spray tower requires large amounts of slurry to be pumped to the top of a tower. The Chiyoda scrubber does not require any pumping but does require increased fan horsepower to overcome an extra 4-6 in. w.g. pressure drop.

It is likely that too much emphasis has been placed on the shower approach and not enough on the bubble bath. Andritz with the FGDplus is now providing more evidence of the bubble bath advantages.

The Rod Deck scrubbers, such as those operating for decades at Duck Creek and Mississippi Power and Philadelphia Electric, have the advantages of high SO₂ removal, small footprint, and low maintenance. It may be possible that some of the spray tower advances over the years have made this alternative a better choice. But it would seem that the bubble bath approach is superior. It is conceded that mist elimination becomes more of a problem. When you tear droplets apart you have smaller droplets. So, you have to have better mist elimination. Fan horsepower is increased but pump horsepower is decreased.

Control of the operation may be a bigger challenge for the bubble bath type scrubbers. The Chiyoda 121 is clearly the simplest design. The question is whether maintenance is higher than in a spray tower design and whether control is more difficult.

There is also a hybrid mode for spray towers. Researchers have found that accelerating the gas flow through the spray tower increases SO₂ efficiency. So even though contact time is less, there may be more liquid-gas surface area due to liquid holdup and droplet fragmentation.”

BUSINESS

MRC Global  Up 14% in Second Quarter

MRC Global Inc. announced second quarter 2021 results. The company’s sales were $686 million for the second quarter of 2021, which was 13% higher than the first quarter of 2021 and 14% higher than the second quarter of 2020. Sequentially, gas utilities led the revenue growth as customers continued executing integrity upgrade plans on their natural gas distribution networks.

As compared to the second quarter of 2020, broad economic recovery drove improvement in sales across all sectors, except midstream pipeline. Net loss attributable to common stockholders for the second quarter of 2021 was ($2) million, or ($0.02) per diluted share, as compared to the second quarter of 2020 net loss of ($287) million, or ($3.50) per diluted share. Rob Saltiel, MRC Global’s president and chief executive officer stated, “Our second quarter results were strong with 13% higher revenue sequentially, led by gains in our industry-leading gas utilities business. Increased revenue, along with continued emphasis on cost control, resulted in higher adjusted EBITDA margins of 5.2%, positive cash flow generation of $23 million and a significantly improved leverage ratio of 2.2 times. Our financial results reflect improving market conditions and our commitment to superior customer service and operational efficiency. We are increasingly optimistic about our outlook across all of our end-markets, including the energy transition space, through the second half of 2021 and into 2022."

MRC Global’s second quarter of 2021 gross profit was $112 million, or 16.3% of sales, as compared to the second quarter of 2020 gross profit of $79 million, or 13.1% of sales. Gross profit for the second quarter of 2021 includes $11 million of expense in cost of sales relating to the use of the last-in, first-out (LIFO) method of inventory cost accounting as compared to the second quarter of 2020, which reduced cost of sales by $6 million. Adjusted gross profit, which excludes the impact of LIFO was $134 million, or 19.5% of revenue, for the second quarter of 2021 and was $118 million, or 19.6% of revenue, for the second quarter of 2020.

Fuel Tech Second Quarter Revenues Up 18.6%

“Our Q2 2021 revenues rose 18.6% from the second quarter of 2020 (“Q2 2020”), driven by a 72% revenue improvement for the FUEL CHEM^® segment attributable to contributions from recent installations of our TIFI^® Targeted In-Furnace Injection technology on new domestic accounts, increased demand for power, and the ongoing recovery from the COVID-19 pandemic,” said Vincent J. Arnone, President and CEO. “We believe that our FUEL CHEM business segment will continue to produce strong results for the balance of 2021, with upside potential derived from application opportunities in the U.S. and internationally

“Our Air Pollution Control (APC) business remained challenged in Q2 2021 due to ongoing pandemic-driven project delays and cancellations that have resulted in a lack of new orders, and project timing. We were pleased to recently announce $4.5 million in new contracts from customers in Korea, North America, and Europe, and view this as a reflection of a strengthening post-COVID business procurement environment. We believe that our greatest opportunities lie in industrial applications, led by our Selective Catalytic Reduction (SCR) and ULTRA^® technologies, and we continue to pursue a current global sales pipeline of $40-50 million.”

Mr. Arnone continued, “During Q2 2021, we completed on-site demonstrations of our Dissolved Gas Infusion (DGI™) at two locations in the United States – the first at a pulp and paper facility in the Northwest that is looking to increase its production capacity later this year, and the second at a municipal wastewater treatment facility on the west coast that was intended to show the benefits of supplemental oxygenation that could be provided by DGI during periods of high waste treatment volume for the municipality. These incremental, yet important demonstrations proved the efficacy of our advanced aeration technology as an adjunct to existing wastewater treatment processes at the facilities.”

FGD and DeNOx Newsletter_520