FGD and DeNOx
NEWSLETTER

March 2022

No. 526

Table of Contents

MARKETS

•        Air, Water, Energy  (AWE) Markets With a Transworld Partnership

•        The Russian Factor Can Increase AWE Revenues by 35% or Decrease Them by 50%

•        Developing Countries Need to Utilize Fossil Fuels

•        Canadian Oil Can Help Replace Russia Imports to U.S.

•        Shale Producers Need Six Months to Ramp Up Production

•        China is Largest Hydrogen

•        Innovative Emissions Control Finalizes Purchase of Cormetech

•        Germany to Fast-Track Renewables to End Reliance on Russian Fossil Fuels 

•        Pakistan is an Energy Resource Rivaling Russia

REGULATORY

•        Court Overturns Emissions Exemption For Czech Coal Plant 

•        EPA Issues Power Plant Emissions Data for 2021

INDUSTRY NEWS

•        Denbury Enhances Industry-Leading Carbon Sequestration Portfolio With New Agreements in Louisiana's Industrial Corridor

•        Talos Energy Announces Formal Execution of Texas GLO Carbon Capture Site Lease and Establishes Strategic Alliance With Core Lab

•        Direct Air Capture Startup Heirloom Raises $53MM Series A, Among the Largest Investments in New Carbon Removal Technologies

•        Hysata's Electrolyzer Breaks Efficiency Records, Enabling World-Beating Green Hydrogen Cost

•        Technip Energies Partners With Greenko Group to Accelerate Green Hydrogen Development in India

•        ANDRITZ Successfully Starts Up Biomass Boiler Plant at Vattenfall AB, Uppsala, Sweden

•        Indonesia Moving Forward With Coal to Methanol Plants

•        Methanol from CO₂ and Hydrogen

•        Air Products to Build Green Liquid Hydrogen Production Facility in Arizona

•        B&W Posts Significantly Higher Sales and Earnings

•        Flowserve Announces Launch of Energy Advantage Program to Support Customers’ Carbon Reduction and Energy Efficiency Goals

•        Mitsubishi Heavy Industries and Institut Teknologi Bandung Extend Collaboration to Drive Decarbonization in Indonesia

•        ANDRITZ to Supply Germany’s First CO₂ Capture Plant For a Cement Works

•        ANDRITZ to Supply Another High-Efficiency Powerfluid Circulating Fluidized Bed Boiler to Japan

•        Focusing on the Unresolved Cost Factors in Dispute

•        Unresolved Cost Factor - New: A New Trunnion Ball Valve For Control With Simplified Construction (Fisher™ V280) For Severe Service

•        Thermax Q3 Order Booking up 57%

MARKETS

Air, Water, Energy  (AWE) Markets With a Transworld Partnership

A surprising consequence of the Russian invasion is the potential for a Transworld Partnership.

The Russian invasion of Ukraine takes on growing importance day by day. In the following article we discuss the impact as ranging from the Grey-Blue Two Step to Tactical Nukes. On one hand, the market would grow due to substitutions for Russian oil and gas. On the other hand,  Russia could use its tactical nukes and greatly reduce the European market for many decades.

This week began with overwhelming support for the Ukrainians but predictions that the move toward globalization has suffered a huge set back. The week is ending with the potential creation of a Transworld Partnership which would actively resist the attempts by any nation to occupy another while at the same time promote free trade.

Finland, Switzerland, and Germany have changed non-intervention polices. No one would have predicted this just a few weeks ago. Billions of dollars in humanitarian and defense aid is being supplied by EU countries. Only four countries opposed the U.N condemnation of Russia.

There is serious planning of a 21^st century Marshall Plan for Ukraine. The goal would be to build back the demolished cities. There are also a number of economic efforts that will be needed. The Russian nuclear power plants need to be restored and even made safer. The Ukrainian grain crisis will need to be addressed immediately. The production of rare metals needs to be resumed. The AWE markets will benefit from this Ukrainian renovation. But the potential is for increased trade and tariff reduction for every free country.

President Zelenskyy proposed a new international security organization and asked President Biden to be the leader, not only of the US, but also of the world. If aggressors know that they will be punished in the way that Russia is now, it will discourage events such as the occupation of Taiwan by China.

In a phone call between  President Biden and President Xi Jinping, the Chinese president stated, “Peace and security are the most cherished treasures of the international community.”  The realization that Switzerland, and every free country, is willing to maximize sanctions on an aggressor will discourage China from invading Taiwan.

For the AWE industry, just the alleviation of the Taiwanese takeover threat will have major implications. Its role in supplying most the world’s advanced computer chips makes its fate of the highest importance to the AWE industry.

Due to COVID and Chinese posturing over Taiwan, we have started to veer away from the free trade policies, which have made the world increasingly prosperous and peaceful. U.S.-Chinese activities are so intertwined that both countries would suffer greatly from a suspension of trade.

The Biden Administration policy to become more self-reliant is inconsistent with maximizing prosperity. Seventy years ago U.S. valve manufacturers’ success depended on their iron foundries. Today no major U.S valve manufacturer operates an iron foundry in the U.S. Many major markets for U.S. AWE suppliers are offshore. Thermo Fisher has its main air pollution research center in China.

The new international security organization envisioned by President Zelenskyy may only need to be as active as the support Ukraine is now receiving. In the short term the military aid is proving effective. In the long term, the embargo of advanced chips from Taiwan to Russia will seriously impair its military capability.

The Ukrainian invasion has proven that free nations are willing to band together when liberty is at stake. The threats of a nuclear holocaust are just as real now as at any time since World War II. We are only as far away as one madman with the nuclear button.

In 2014 President Obama negotiated the Trans-Pacific Partnership. The TPP was a trade agreement with 11 other countries in the Asia-Pacific region, including Canada and Mexico. It did not pass Congress. We need to now think bigger and include the entire free world and other countries which will agree to abide by the national sovereignty rules. China should be included,  but with the proviso that it would lose its membership with rules violations.

The AWE markets are very international. Suppliers and the world will benefit from a  Transworld Partnership.

The Russian Factor Can Increase AWE Revenues by 35% or Decrease Them by 50%

The Air, Water, Energy (AWE) revenues in the 2022-27 period can increase by 35% with a grey- blue two step scenario or decrease by 50% in the Tactical Nuke Scenario.

Due to this uncertainty, McIlvaine forecasts for air, water, and energy (AWE) products will now include high, base, and low predictions. The low will be based on the Tactical Nuke Scenario and the high on the Grey-Blue Two Step.

Tactical Nukes:  Putin does not dominate Ukraine and uses his tactical nuclear weapons for a limited war which leaves Europe and Russia greatly diminished.

Grey-Blue Two Step:  Various green technologies are initially combined with grey technologies which are upgraded to blue over time.

Under the Tactical Nuke scenario, the AWE suppliers cannot be pro-active. But the Grey-Blue Two Step will have many pro-active opportunities for AWE suppliers. This is not true of some past crises, such as the 2008 financial meltdown.

One of the most important objectives could be to reduce reliance on Russian and Saudi energy. In the short term, the U.S. has become the leading supplier of gas to Europe. IEA forecasts that an immediate reduction of European gas needs of 30% can be achieved by utilizing the nuclear and coal capacity and with some consumer restraint.

Longer term solar and wind can obsolesce fossil fuels. But, over the next 30 years, we will need to use our fossil fuel resources. Over 20 million tons per year of hydrogen are being produced from coal in China. Indonesia has a big coal-to-methanol project underway. Pakistan has more energy reserves with Thar lignite than all the reserves of oil and gas in Saudi Arabia. This lignite can be used to create methane, hydrogen, or ammonia. Carbon capture and sequestration can be added later.

Bioenergy with carbon capture is carbon negative. So there is no tipping point. If more carbon negative technology is applied in the 2030-2050 period, we can offset any increase in the next 10 years.

All these technologies involving fossil fuels require major investments in AWE products. New AWE systems, such as in situ capture of rare earths during combustion, will prove to be very cost effective.

Forecasts will be critical for AWE companies, not only to prepare for what will be needed, but to actually shape the needs.

There was a big proactive opportunity in 1989 with the dissolution of the Soviet Union and the opening of the Chinese market. During  a 20 year period the most successful AWE companies were those who pursued an open world market. The Russian invasion of Georgia and the switch in Chinese priorities from capitalism to authoritarianism started to slow down the progress. The invasion of Ukraine has moved the world back to the 1980s.

It is helpful to compare the impacts of past crises on the AWE companies.

World War II is used as a base for relative magnitude of 10. No event until now compares. It was not anticipated by most. It completely changed the type of  purchasers. The products became valves for tanks and planes rather than automobiles. AWE suppliers were primarily reactive.

The 1973 energy crisis was small in magnitude compared to WW II but created many proactive opportunities for AWE suppliers in coal gasification and liquefaction as well as shale. U.S. utilities ordered 80,000 MW of new coal plants which turned out to be more capacity than has been actually installed in the 1974-2022 period.

Within two years OPEC resumed normal production and the crisis ceased. Rather than continue with energy independence, the U.S. canceled all the partially completed and planned projects.

This is not likely to be the case in the present crisis. The slaughter of innocent Ukrainians and the bravery of the nation have galvanized the free world to escape the OPEC/Russia yoke. The impact could be higher than World War II. It is generally believed that Putin will do what is necessary to stay in power. If he cannot dominate Ukraine, he may resort to a war with NATO using his 2,000 tactical nuclear weapons. He has a 10 to 1 superiority with these weapons.

This use of the tactical nukes would force the free world to make decisions about mutual destruction using the larger strategic weapons. So assigning a relative risk factor of two times World War II is justified. There is also the potential that Putin could be toppled, and the situation becomes much better.

Many complicated decisions are needed in this crisis. The climate change needs have to be balanced against the high energy prices facing developing as well as developed countries. AWE companies need to quantify the potential markets and understand the product needs. These needs can be characterized as cost of ownership factors. The Total Cost of Ownership (TCO) will be determined by connecting all the sources of wisdom.

With all the uncertainties caused by the invasion, there are a number of unresolved issues. Some are general, such as climate change versus energy costs. The wisdom of government bodies and consultants will be needed to determine the TCO  factors. Consultants, industry associations, and suppliers will provide industry insights, such as green versus grey hydrogen. System suppliers will compare processes, such as hydrogen versus ammonia for combustion. Product suppliers will provide cost factors for the increased NO_x control products required while burning hydrogen.

The product factors will be disputed by individual suppliers and will need to be carefully evaluated. History shows that when one approach is selected initially it is hard to substitute a better alternative.

The invasion of Ukraine presents a challenge to the AWE industry. It is one which can be best met with a range of relevant continually updated forecasts along with connection of the wisdom  available from governments, consultants, associations, suppliers, and purchasers.

The McIlvaine Company AWE market reports, databases, and Decision Systems are described at www.mcilvainecompany.com

Bob McIlvaine can answer your questions at rmcilvaine@mcilvaincompany.com or call him at 847 226 2391.

Developing Countries Need to Utilize Fossil Fuels

Developing countries should not have to target renewable energy sources and turn away from fossil fuels Nigerian and Equatorial Guinea energy officials said, joining other emerging oil-producing nations reluctant to embrace the global energy transition trend.

Emerging economies must contend with higher fuel costs at a time when millions lack access to reliable energy sources while also dealing with extreme climate events.

Some 900 million people in the world, most of them in Africa, still have no access to energy for basic needs, Nigeria's oil Minister Timipre Marlin Sylva said during the CERAWeek energy conference in Houston.

We are still in transition from firewood to gas," Sylva said. "Please allow us to continue with our own transition."

Equatorial Guinea Minister of Mines and Hydrocarbons Gabriel Obiang Lima echoed those concerns, saying pressure over renewables is "very unjust", with a discussion on how to transition only possible after the energy security crisis is over.

The 38 members of the Organization for Economic Co-operation and Development (OECD), some of the richest countries worldwide, along with Russia, China and India, account for more than two-thirds of the world's oil demand. The rest, which includes Africa, most of Asia and Latin America, account for just 31%, according to OPEC data.

"Every emerging economy has to have the right to access reliable, safe energy," said Tengku Muhammad Taufik, president and CEO of Malaysia's state-owned Petronas.

Other countries with oil discoveries still in development, including Ghana, Guyana, and Suriname, also have said they cannot be expected to give up the chance to benefit from oil and gas that helped build more developed economies. "They want all of us, including those of us without food, to carry the burden of transition," Nigerian National Petroleum Corporation (NNPC) general manager Bala Wunti said.

Nigeria now faces a double blow from high prices of gas for cooking that it imports and lack of investment in its oil industry, Sylva said, as banks and funds have been pushing to restrict investment in oil globally to cut greenhouse gas emissions and fight climate change.

Nigeria has had to cut oil production from 1.8 million barrels per day (bpd) to less than 1.5 million bpd due to lack of financing to maintain its facilities, Sylva said.

That lost production could have helped contribute to global supply as the world now seeks alternatives to Russian oil after buyers halted purchases over its invasion of Ukraine, he said. Russia calls its actions in Ukraine a "special operation."

Investors backing renewable fuels have cut financing for oil projects, reducing production of oil, gas, and coal faster than renewable sources of energy could replace them, pushing prices up, he said.

Canadian Oil Can Help Replace Russia Imports to U.S.

Canada could supply the U.S. with a third of the oil that the country usually imports from Russia in the wake of the Biden administration’s ban, Suncor Energy Inc. Chief Executive Officer Mark Little said.

He was among the Canadian oil executives speaking at CERAWeek by S&P Global that excoriated the Biden administration for blocking construction of the Keystone XL pipeline, which they said could have helped ease prices at the pump in the wake of Russia’s invasion of Ukraine.

Shale Producers Need Six Months to Ramp Up Production

Skyrocketing crude prices aren’t good for the oil and gas industry and could lead to falling demand for petroleum products and disrupt global markets, Chesapeake Energy Corp. CEO Nick Dell’Osso said.

“You have prices spiking really high and I think that’s not actually great for our industry,” Dell’Osso said during an interview at CERAWeek at S&P Global.

“We all like to enjoy a nice profit margin but a shock to prices is not good for commodity producers,” he said. “You have bad things happen in commodity production when you have these kind of spikes.”

Dell’Osso said U.S. shale producers will need six to nine months to ramp up production and meet growing demand in the wake of Russia’s war on Ukraine. Chesapeake Energy and other shale producers are challenged by the ongoing labor shortage and a tightening market for steel and chemicals used in drilling and production.

“We as an industry like to be known as a supplier of energy that can be reliable,” he said. “When you have these shocks, there’s a lag time, and we hate to see that there’s a need for the product that isn’t being met in the short term.”

China is Largest Hydrogen Producer

§  China is already the largest hydrogen producer (mostly from unabated fossil fuels) and the third-largest market for FCVs in the world.

§  A massive renewable power generation capacity in China could help underpin the rapid expansion of renewable-based hydrogen.

§  The vast potential for renewable-based hydrogen production and the significant energy consumption profile may mean that China would become neither an exporter nor an importer of hydrogen.

§  The transportation sector, particularly trucks and buses, may remain China’s focus for hydrogen application, although hydrogen use in industrial sectors seems to be emerging.

§  China is the largest producer of hydrogen today, at about 25 million tons (Mt), or roughly a quarter of the global total. Most of the volume is produced from fossil fuels (60 percent from coal, and 25 percent from natural gas) as feedstocks in refineries or chemical facilities. However, China is increasingly exploring cultivating the production and consumption of lower-emission hydrogen to help meet energy needs and spur industrial development while also addressing climate concerns. In particular, China’s 2060 carbon neutrality commitment made in 2020 is a major policy-oriented development that could aid the shift in hydrogen production away from fossil fuels to renewables, greater deployment of FCVs, and the use of hydrogen in harder-to-abate sectors.

§  While China has not yet announced a national hydrogen strategy, hydrogen demand outlook suggests strong growth. The China Hydrogen Alliance, a government-supported industry group launched in 2018, forecasts China’s hydrogen demand to reach 35 Mt in 2030 (at least 5 percent of the Chinese energy supply) and 60 Mt in 2050 (10 percent). Meanwhile, the same organization also projects that renewable-based hydrogen production could reach 100 Mt by 2060, accounting for 20 percent of the country’s final energy consumption.

§  The cost of hydrogen production from coal remains very low in China: producing coal-based hydrogen costs roughly half as much as renewable-based hydrogen. The cost disadvantage hampers green hydrogen development, which currently accounts for 1.5 percent of the total national hydrogen supply. Yet, China’s central government appears increasingly focused on the prospect for green hydrogen development, illuminating a potential combination of energy storage and hydrogen technologies in the context of expanding renewable energy supplies.

The full article is available at https://www.csis.org/analysis/chinas-hydrogen-industrial-strategy#:~:text=China%20is%20the%20largest%20producer,in%20refineries%20or%20chemical%20facilities.

Innovative Emissions Control Finalizes Purchase of Cormetech

Innovative Emissions Control Inc. (IEC), a special purpose investment company founded by investment professionals John Moore and Edoardo Bugnone, composed of Swiss and U.S. investors and Cormetech’s management team, announced that it has completed a transaction to buy Cormetech, Inc. Terms of the transaction were not disclosed.

Cormetech, headquartered in Charlotte, NC, is one of the world’s leading environmental product and services companies serving utility and industrial customers around the globe. Cormetech’s CEO Mike Mattes said, “We are delighted to partner with Edoardo and John and our fellow investors at IEC to acquire Cormetech. Our management team and I are excited to continue seamlessly executing on the current business plan.”

IEC Co-Founding partner Edoardo Bugnone said, “We are incredibly pleased to make this investment in Cormetech and to support Mike and his team. Our investment and growth capital are intended to provide the company long-term stability of ownership and reflect our belief that Cormetech is uniquely positioned to grow globally and help reduce the environmental impact of coal and natural gas plants. We are also seeking to build on Cormetech’s leading technological platform to develop new innovative technologies, including in the carbon capture and water treatment fields.”

IEC Co-Founding partner and new Chairman of Cormetech John Moore said, “Mike and his team created the world’s only integrated new and regenerated SCR catalyst business. They offer their broad range of utility, marine, and refinery customers a unique solution for reducing the cost of NO_x emissions compliance. Edoardo and I are excited by the terrific management team Mike has assembled, how we can build on the solid foundation they have established, and what we can accomplish with our customers and technology partners in the next decade together.”

Germany to Fast-Track Renewables to End Reliance on Russian Fossil Fuels 

Germany’s Economy Minister, Robert Habeck, has announced plans to dramatically accelerate the shift to 100 percent electricity generation by renewable energy by 2035 to cut reliance on Russian gas and coal imports. The ministry is proposing renewables legislation to suspend cuts to solar subsidies and increase tenders for solar capacity from 5,000 MW to 20,000 MW per year until 2035. It also proposes expanding the tenders for onshore wind from 2,000 MW to 10,000 MW per year to 2035. At present, about half of Germany’s imported coal comes from Russia. Despite some ambiguous statements, it appears unlikely the new coalition government will extend the life of domestic coal generation or delay the shutdowns of nuclear plants already underway.

Pakistan is an Energy Resource Rivaling Russia

Syed Akhtar Ali  says  Pakistan has 180 billion tons of lignite coal deposits, which have the potential of firing 1,800 power plants of 1,000 MW for 30 years or 500 power plants for 100 years. These deposits are more than the combined oil and gas resources of Iran and Saudi Arabia combined. The country has installed only one or two Thar coal-based small power plants, and a few are in the pipeline, which may not exceed 5,000 MW in total. There are three big 1,100 MW coal-fired power plants based on imported coal which are draining foreign exchange reserves even though they are producing relatively cheap electricity. Thar coal has the potential for supplying a significant portion of the  energy needs and saving foreign exchange. Oil and gas resources are also dwindling, and no new resources could have been found in reasonable quantities.

In light of the recent spike in energy prices there are many potential uses for the coal, Thar lignite coal has been producing synthetic natural gas (SNG), fertilizers (urea and others), ammonia and other chemicals.

Lignite can be used for making graphite. Researchers in North Dakota recently found out that lignite coal is much more amenable to graphitization than the more expensive Bituminous and Anthracite coal —these coal types do not lend themselves to graphitization at all. Graphite is a high-value product used in nuclear power.

As a neutron moderator, electrodes in arc steel making, electrodes in both conventional and EV batteries, graphite lubricant roads, plates, tubes, etc. The selling price of graphite is around $16,000 per ton and the price of lignite — used as a raw material — is around $30 per ton.

Also, lignite coal may contain trace elements called rare earth elements (REEs). Lithium is one of such REEs. Li-ion batteries are the most popular EV batteries whose demand is expected to grow exponentially in the future. Battery-grade LiOH has been trading at $46,000-65,000 per ton, as compared to $7,000-10,000 per ton of copper.

At present, China is supplying lithium, but its lithium resources are not expected to continue for long unless new resources are discovered. Other countries are also in their exploration phases for this natural resource. It has been found that North Dakota lignite contains up to 500 ppm of lithium, leading to a total of 3,600 tons as against the total global production of 70,000 tons per year.

Pakistan imports 19 million tons of coal per year — half of which is likely to be consumed by imported coal-fired power plants — and the other half by cement plants. International coal prices and shipping costs have quadrupled — $400 per ton as opposed to the previous $80 per ton.

Cheaper imports from Afghanistan and some local production from Balochistan saved Pakistan’s cement and construction industries. Afghanistan’s coal sector is not integrated with international markets yet and sells its product at much lower prices. It is in the interest of the local cement industry to develop local coal supplies, which would be cheaper and stable.

While converting imported coal power plants to Thar coal-run plants may be a difficult and time-consuming job, Thar lignite can be easily introduced in cement plants. Dewatering technologies are readily available and have been used in Germany. More than a billion dollars of foreign exchange can be saved per year. Many countries are using separated municipal solid waste (MSW) to fire cement kilns. In Pakistan, too, some companies have tried it. There shouldn’t be too many problems for cement industries in converting to Thar coal. It would also be difficult for the powers that be to stop or discourage this activity, as it is only converting from one coal type to another.

Coal gasification and the associated products and chemicals like urea, DAP, or even diesel have been indicated to be economical — if compared with LNG — but they may be opposed by even friendly countries due to pressure from international climate forces.

The writer of this analysis is a former member of the Energy Planning Commission and author of ‘Pakistan’s Energy Issues: Success and Challenges’.

He can be reached at: akhtarali1949@gmail.com  Email: akhtarali1949@gmail.com

REGULATORY

Court Overturns Emissions Exemption For Czech Coal Plant 

A regional court has cancelled the exemption from emission limits for mercury and nitrogen oxides granted by the Ministry of the Environment in November 2021 to the operator of the 820 MW Chvaletice lignite plant in the Czech Republic. The ministry granted the plant a six-year exemption from the standards. However, the court found any exemption had to be only for the shortest possible period. Greenpeace said that the plant must meet emissions standards or close in the wake of the ruling. 

EPA Issues Power Plant Emissions Data for 2021

The U.S. Environmental Protection Agency (EPA) released publicly available, annual data on 2021 emissions of nitrogen oxides (NO_X), sulfur dioxide (SO₂), carbon dioxide (CO₂), and mercury from power plants in the lower 48 states. Emissions in 2021 were higher than 2020, reflecting a rebound in coal-fired generation as natural gas prices and energy demand increased. However, compared to 2019, 2021 emissions fell between 3% and 11%, reflecting the long-standing trend of decreasing annual emissions. 

“The 2021 increase in coal-fired generation and resulting rise in air pollution shows how important it is to urgently forge ahead in building and supporting a cleaner power sector,” said EPA Administrator Michael S. Regan. “Thanks in part to EPA rules and policies, we have made great progress in lowering dangerous pollution over the last several decades. But it’s clear our work is far from done, as we deliver on our commitment to protect the health of everyone and especially those most vulnerable among us.”

Compared to 2020, the 2021 data show a 6% increase in NO_x emissions, a 20% increase in SO₂  emissions, a 7% increase in CO₂ emissions, and a 13% increase in mercury emissions. Additionally, ozone season (May 1 to September 30) NO_x emissions increased by 5%. Overall, based on the first 11 months of 2021, electricity demand increased by 3% compared to 2020.

Between 1990 and 2021, annual emissions of SO₂  from power plants fell by 94% and annual emissions of NO_x from power plants fell by 88%. In 2021, sources in both the Cross-State Air Pollution Rule (CSAPR) annual program and the Acid Rain Program (ARP) together emitted 0.94 million tons of SO₂, a 14.8 million ton reduction from 1990 levels. In 2021, sources in both the CSAPR NO_x  annual program and the ARP together emitted 0.78 million tons, a 5.6 million ton reduction from 1990 levels. While complying with programs to reduce SO₂, NO_x and mercury, CO₂ emissions from power plants dropped by 21% between 1995 and 2021.

Long-term declines in emissions are due primarily to changes in the mix of fuels used in electricity generation. While data from 2021 showed a one-year 16% increase in coal generation and a 3% decrease in natural gas generation, there is a shift underway from higher emitting to lower and zero emitting generation.

These long-term reductions in power sector emissions protect community health. NO_x and SO₂ emissions contribute to the formation of ground-level ozone and particulate matter, which can lead to respiratory and cardiovascular problems, and exposure to mercury, a potent neurotoxin, effects the nervous system and brain functions, particularly in infants and children, and is known to cause other significant health effects.

Ambient particulate sulfate concentrations in the eastern United States have shown substantial improvement, decreasing between 76 and 79% from the 2000-2002 to 2018–2020 observation periods. All areas of the eastern United States have shown significant improvement in wet sulfate deposition in this period, with an overall 70% reduction. In addition, these emissions reductions are resulting in positive ecosystem impacts. The level of acid neutralizing capacity, an indicator of recovery, improved significantly from 1990 levels at lake and stream monitoring sites in the Adirondacks, New England, and the Catskill mountains.

INDUSTRY NEWS

Denbury Enhances Industry-Leading Carbon Sequestration Portfolio with New Agreements in Louisiana's Industrial Corridor

Denbury Inc. announced three new lease agreements with large private landowners in Louisiana, securing additional exclusive rights to develop significant carbon dioxide (CO₂) sequestration projects in high quality, high-capacity reservoirs underlying deep sealing formations along the state’s industrial corridor.

Two of the agreements cover a contiguous area of approximately 84,000 acres located approximately thirty miles southeast of New Orleans, Louisiana. Denbury estimates this site will provide more than 500 million metric tons of potential CO₂ sequestration capacity. The company plans to initially connect emissions from nearby industrial facilities to this site, with future plans for a pipeline connection to the company’s Green Pipeline in Donaldsonville, Louisiana. The planned pipeline route is within 10 miles of multiple industrial sources that collectively emit over 20 million metric tons of CO₂ annually. The company believes that this site will provide an economic, large-scale solution for the transportation and permanent sequestration of captured industrial emissions along the Louisiana industrial corridor between Donaldsonville and lower Plaquemines Parish.

Denbury also executed a new pore space agreement adjacent to the acreage leased under the company’s recently announced agreement near Donaldsonville, Louisiana. This new agreement expands the potential volume of CO₂ that the company estimates can be sequestered at the combined site to more than 220 million metric tons, approximately a 50% expansion to the original site. The combined 11,000-acre site is located less than 10 miles from the company’s existing CO₂ pipeline infrastructure, and there are approximately 30 million metric tons of CO₂ currently emitted annually within a 20-mile radius of the site.

Chris Kendall, Denbury’s President, and Chief Executive Officer, commented, “These agreements further cement Denbury’s position as the definitive leader in CCUS, and we are continuing to advance negotiations with multiple industrial partners whose captured emissions would be stored in these sites. Today, through our unrivaled CO₂ pipeline infrastructure and enhanced oil recovery operations, Denbury is uniquely able to provide transportation and certainty of storage capacity for captured industrial CO₂ emissions. Looking forward, we are poised for continued growth and success in the emissions-intensive Gulf Coast region, as we significantly expand our storage capacity through the addition of a diverse portfolio of sequestration sites, exemplified by the agreements announced today.”

Denbury now has exclusive rights to develop pore space storage with an estimated capacity of more than 1.4 billion metric tons of CO₂. Denbury’s leadership position in CCUS is supported by over 20 years of experience transporting and injecting CO₂ underground and more than 1,300 miles of CO₂ pipelines through which the company is currently moving in excess of 14 million metric tons of CO₂ annually.

Talos Energy Announces Formal Execution of Texas GLO Carbon Capture Site Lease and Establishes Strategic Alliance with Core Lab

Talos Energy Inc. announced that Bayou Bend CCS LLC, Talos's venture with Carbonvert, Inc. (the "Venture"), executed definitive lease documentation with the Texas General Land Office ("GLO"), formalizing the previously announced carbon capture and sequestration ("CCS") site located offshore Jefferson County, Texas, near the Beaumont and Port Arthur, Texas industrial corridor. Talos separately announced that it had established a CCS strategic alliance with Core Laboratories N.V. ("Core Lab") Euronext Amsterdam: CLB) to provide technical evaluation and assurance services for CCS subsurface analysis, including the company's upcoming 2022 stratigraphic evaluation wells.

Texas GLO Lease
On March 11, 2022, the Venture jointly executed lease documentation with the GLO establishing the first ever major offshore carbon sequestration site in the United States. The lease comprises more than 40,000 acres immediately adjacent to the Beaumont and Port Arthur, Texas industrial corridor and maintains an estimated sequestration capacity of 225 – 275 million metric tons of CO₂. The project will be known as Bayou Bend CCS. Talos will be the operator and holds a 50% equity interest.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "We are pleased to reach definitive agreements with the State of Texas and look forward to making significant progress on this important CCS hub opportunity in 2022. In the coming months we hope to identify anchor industrial partners for the Bayou Bend CCS project as well as a midstream transportation solution in the region. Our bid for the large-scale permanent sequestration site was selected from a highly competitive process in August last year. Since the GLO bid and subsequent award announcement, the team has moved rapidly to build out one of the premier CCS project portfolios in the United States, which has now all been organized under Talos Low Carbon Solutions LLC, or "TLCS," the company's CCS subsidiary. We are dedicated to continuing to scale TLCS to become an industry-leading CCS platform and a meaningful business for Talos in the future."

Core Lab Strategic Alliance

Separately, on March 5, 2022, the company established a technical alliance with Core Lab to advance CCS site characterization, including stratigraphic evaluation wells, reservoir core sampling, geological assessment and rock and fluid sample analysis, all of which are critical inputs for EPA Class VI permit applications. The alliance also provides a framework for future collaboration around transparent CO₂ stream monitoring and verification. Core Lab is a leading global provider of reservoir description and enhancement products and services and currently partners with Talos on numerous upstream subsurface activities.

Talos Executive Vice President Low Carbon Strategy and Chief Sustainability Officer, Robin Fielder, commented: "We are pleased to announce this strategic alliance with Core Lab to deliver technical assurance for our growing portfolio of sequestration sites and, ultimately, for our customers. Capitalizing on our respective subsurface expertise, this alliance strengthens our technical capabilities leading up to the filing of CO₂ injection well permits this year and advances TLCS's ability to deliver high-quality, end-to-end CCS solutions to customers across the Gulf Coast."

Direct Air Capture Startup Heirloom Raises $53MM Series A, Among the Largest Investments in New Carbon Removal Technologies

Heirloom, a direct air capture company permanently removing CO₂ from the atmosphere, announced that it has raised $53MM in a Series A funding round co-led by Carbon Direct Capital Management, Ahren Innovation Capital, and Breakthrough Energy Ventures, with The Microsoft Climate Innovation Fund as an additional participant. Alice Newcombe-Ellis of Ahren will join Heirloom's board of directors.

The IPCC has made it clear that we need to permanently remove tens of billions of tons of CO₂ from the atmosphere to keep global temperature rise below 1.5℃. The funding, among the largest private financings in direct air capture to date, will help Heirloom to scale by funding their continued research and development, and their first deployment.

"The costs of Direct Air Capture have to come way down to make a meaningful impact on climate change," said Shashank Samala, Co-founder, and CEO at Heirloom. "Utilizing low cost, earth abundant minerals as a sponge for CO₂ is key to making the economics work. In the 10 months since we launched, we've made a breakthrough in the rate we take up CO₂ from the atmosphere, giving us a clear path to ultra-low cost, highly scalable carbon removal, and achieving our mission to help reverse climate change."

Heirloom is fundamentally changing the carbon removal space. By using abundant and affordable minerals, a simple, modular system, and leveraging mature technology and infrastructure, their technology has the lowest peer-reviewed, at-scale cost of any direct air capture technology on the market.

The Series A financing also includes investments from leading climate funds and entrepreneurs, including Breyer Capital, Grantham Environmental Trust, Chris Sacca's Lowercarbon Capital, Marc Benioff's TIME Ventures, Carbon Removal Partners, and Seven Seven Six. Over the last year, Heirloom has also received grant funding from the ARPA-e and the National Science Foundation.

"Carbon removal is essential to hit our climate goals," said Jonathan Goldberg, founder and CEO of Carbon Direct. "Heirloom's vision is to remove one billion tons of carbon dioxide by 2035 and deliver cost-effective direct air capture. Heirloom is already being deployed, and Carbon Direct is excited to work with Heirloom to hyper-scale its critical technology."

"To limit the planet's warming to 1.5°C, we need to combine significant carbon reductions with carbon removal from the atmosphere. Our catalytic investments in durable direct air capture technologies like Heirloom aim to drive mainstream adoption by bringing down the green premium through large-scale deployment," says Mark Kroese, General Manager, Sustainability Solutions at Microsoft.

Hysata's Electrolyzer Breaks Efficiency Records, Enabling World-Beating Green Hydrogen Cost

Australian company Hysata's world-leading hydrogen electrolyzer technology has been recognized on the global stage with ground-breaking research published today in top tier peer-reviewed scientific journal Nature Communications.

The research confirms Hysata's 'capillary-fed electrolysis cell' can produce green hydrogen from water at 98% cell energy efficiency, well above International Renewable Energy Agency's (IRENA) 2050 target and significantly better than existing electrolyzer technologies, enabling a hydrogen production cost well below A$2/kg (US$1.50/kg).

Green hydrogen is vital for decarbonization of hard-to-abate sectors like steel, heavy transport, and chemicals. The Energy Transitions Commission expects demand for green hydrogen to grow to 500-800 million tons per annum by 2050 to meet demand in these sectors, creating a new multi-trillion-dollar industry.

Currently however, green hydrogen is too expensive to compete with fossil fuels, due in large part to the low efficiencies of existing electrolyzers. Hysata's ultra-high efficiency electrolyzer will make green hydrogen competitive years earlier than generally assumed, accelerating global decarbonization and increasing energy security.

The technology was invented by scientists at the University of Wollongong and is now being commercialized by Hysata, with backing from IP Group and the Clean Energy Finance Corporation (CEFC).

Paul Barrett, CEO of Hysata, said the company is on a clear pathway to commercialize the world's most efficient electrolyzer and reach gigawatt scale hydrogen production capacity by 2025.

"The global momentum towards net zero is creating a massive opportunity for green hydrogen and electrolyzers. Economics will ultimately determine which technologies win, and with our world-beating efficiency, Hysata is well placed to lead in this major new global market.

"Our electrolyzer will deliver the world's lowest hydrogen cost, save hydrogen producers billions of dollars in electricity costs, and enable green hydrogen to outcompete fossil fuel-derived hydrogen.

"Our technology will enable hydrogen production of below US$1.50/kg per kilogram by the mid-2020s, meeting Australian and global cost targets much earlier than generally expected. This is critical to making green hydrogen commercially viable and decarbonising hard-to-abate sectors.

"Hysata has some of Australia's brightest minds working together to position Australia as a leading manufacturer and exporter of electrolyzers, with plans underway to build a pilot electrolyzer manufacturing plant and employ dozens of new highly skilled specialists in 2022.

"Green hydrogen is forecast to be a trillion-dollar industry with the backbone of this industry being the electrolyzer. Given the urgency to reach net zero, we are gearing up to scale up as quickly as possible. The elegant design of our electrolyzer is perfectly suited to mass production."

This significant step change in hydrogen technology is on track to accelerate the global hydrogen economy and drive down the cost of green hydrogen production in Australia and globally, positioning Australian as a leading manufacturer of electrolyzers and producer of green hydrogen.

Gerry Swiegers, Chief Technology Officer at Hysata said the overall design of the Hysata electrolyzer system was simpler than existing technologies:

"Electrolyzers have been around for 200 years, however the large amounts of renewable electricity required to produce green hydrogen and the overall cost of electrolyzers today has prevented large-scale uptake of green hydrogen."

"Hysata's overall electrolyzer system has been designed for ease of manufacturing, scaling and installation, delivering 95 percent overall system efficiency, equivalent to 41.5 kWh/kg, compared to 75 percent or less for existing electrolyzer technologies. For hydrogen producers, this will significantly reduce both the capital and operational costs to produce green hydrogen. "

"Hysata is proud to be at the forefront of this technology innovation and introducing an entirely new category of electrolyzer that is as monumental as the shift from the internal combustion engine to electric motors," Swiegers concluded.

Technip Energies Partners With Greenko Group to Accelerate Green Hydrogen Development in India

Technip Energies and Greenko ZeroC Private Ltd have signed a Memorandum of Understanding (MoU) to explore Green Hydrogen project development opportunities across industries including refining, petrochemicals, fertilizer, chemical and power plant sectors in India to accelerate Energy Transition in the country.

The MoU aims to facilitate active engagement between the teams of Technip Energies in India and Greenko to step up collaborative opportunities on a “Build-Own-Operate (BOO)” model — in which Greenko will be the BOO operator and owner of the asset and Technip Energies will support with Engineering services, Integration and EP/EPC — for pilot and commercial scale Green Hydrogen and related projects in India in order to offer economically feasible technology solutions to clients.

Both entities bring complementary skills and added-value to this partnership — Technip Energies with its Hydrogen expertise, Integration capabilities, EPC project management skills and regional footprint, and Greenko with its technological know-how, expertise, and assets in renewable energy, which span solar, wind and hydro.

Technip Energies is ready to lead the hydrogen wave in both decarbonized and carbon-free applications. With a 50-year track record in the sector, they are leveraging our expertise, proprietary technologies, wide-ranging partnerships, and execution excellence to accelerate the energy transition and their commitment to a low-carbon society.

ANDRITZ Successfully Starts Up Biomass Boiler Plant at Vattenfall AB, Uppsala, Sweden

International technology group ANDRITZ has successfully started up a new biomass boiler plant, including a biomass receiving and handling system, at Swedish energy company Vattenfall AB for its “Carpe Futurum” project.

The heating plant is located on Vattenfall’s existing combined heat and power plant site in Uppsala, Sweden, some 70 km north of Stockholm. This new plant supplies more than 110 MW of district heat to the Uppsala area and is also prepared for electricity production at a later stage. The fuel for the new plant comprises different kinds of wood-based biomass, such as recycled wood, bark, wood chips, and sawdust.

The ANDRITZ scope of supply included biomass receiving, handling, and storage silos, a biomass-fired boiler with flue gas cleaning, and a flue gas condenser. The boiler is based on the ANDRITZ EcoFluid bubbling fluidized bed design, which combines high efficiency with excellent environmental performance. Flue gas emissions are reduced to very low levels, with the selective catalytic reduction (SCR) method for NO_x emissions and a baghouse filter, including sorbent feeding, for sulfur dioxide (SO₂), hydrochloric acid (HCl), heavy metals, and dust emissions. The flue gas condenser significantly increases the district heat output and, therefore, improves plant efficiency to beyond 110% when calculated using the fuel lower heating value.

The “Carpe Futurum” project is an important part of Vattenfall’s goal of becoming CO₂ neutral with their energy systems and its combined heat and power plants by 2030. Vattenfall delivers district heat to more than 90% of the houses in Uppsala, providing heating for more than 180,000 people.

Indonesia Moving Forward With Coal to Methanol Plants

Indonesia’s plans to build a new national coal gasification industry, converting its abundant coal resources into methanol and dimethyl ether, are moving forward after two deals were announced late last year.

In October, Indonesia’s Powerindo Cipta Energy and China’s state-owned China National Chemical Engineering Corporation signed an agreement to begin a feasibility study into building a US$560 million coal-to-methanol plant.

Then, in November, just days after the COP26 Climate Change Conference, Air Products announced a plan to invest $13-15 billion into several gasification projects with support from the Indonesian government. The US-based company is a leading provider of gasification technology, including to China.

Methanol from CO₂ and Hydrogen

Linde has expanded its withstanding agreement with Celanese Corporation and will now begin supplying the chemical and special materials company with carbon dioxide (CO₂) and hydrogen.

Focused Celanese’s manufacturing facility in Clear Lake, Texas, the deal will see the delivered CO₂ and hydrogen used as an alternative feedstock to produce methanol with lower carbon intensity.

Supplied CO₂ will be captured from Linde’s nearby carbon monoxide production facility, with supply expected to begin in the first half of next year (2023).

Already, the industrial gas giant supplies Celanese with oxygen, nitrogen, and carbon monoxide.

This unique  process of converting pure CO₂ to methanol has advantages. Starting from pure CO₂ and a separate pure source of H2, rather than a mixture of CO, CO₂, and H2 as is the case with syngas, simplifies the chemistry, and therefore also changes the reaction and purification processes from conventional methanol producing industrial plants. At the core of the advantages is that the reaction impurities are essentially limited to only water and dissolved CO₂ in the crude methanol.

The steps are shown below.

Air Products to Build Green Liquid Hydrogen Production Facility in Arizona

Air Products, a world leader in the supply, distribution, and dispensing of hydrogen, announced that it will build, own, and operate a 10 metric ton per day facility to produce green liquid hydrogen in Casa Grande, Arizona. The zero-carbon liquid hydrogen facility is expected to be on-stream in 2023 and its product will be sold to the hydrogen for mobility market in California and other locations requiring zero-carbon hydrogen.

The facility will use two Thyssenkrupp nucera electrolyzers to produce gaseous hydrogen, which will be converting Air to liquid hydrogen using Air Products' proprietary technology. The site will also include a terminal for distributing product to customer locations throughout  California and other markets.

Air Products' production process eliminates carbon by powering the entire facility with zero-carbon renewable power. The facility will include advanced compression technology supplied through the Baker Hughes strategic alliance to feed the liquefier. This compression technology is also being used for Air Products' previously announced world-scale carbon-free hydrogen NEOM project located in Saudi Arabia, and the recently announced net-zero hydrogen production complex in Alberta, Canada.

Through several regulations, California has taken steps to aggressively decarbonize its transportation sector, the largest emissions sector in its economy, through conversion to zero emission vehicles. The state has also set a goal that all drayage trucks be zero emissions by 2035 and heavy duty vehicles convert to zero emissions vehicles by 2045. Hydrogen is an essential part of decarbonizing the transportation sector. Hydrogen fuel cells are gaining momentum as the technology of choice compared to batteries in heavy-duty applications due to faster refuel times, longer range, and larger payloads, while also performing better in extreme climate conditions. Hydrogen as a transportation fuel most closely mirrors the traditional transportation fueling experience.

"We're excited to bring this new source of green hydrogen to the California market and recognize the vision of decarbonizing the transportation sector. California is a global leader in the energy transition and as a global leader in hydrogen and hydrogen for mobility, Air Products is proud to contribute to solving a significant energy and environmental challenge. The Arizona project is another link in the hydrogen supply chain to ensure reliable supply of decarbonized fuel to customers. Air Products is continuing to pursue other opportunities to produce low and zero-carbon hydrogen to help meet the growing demand in world leading geographies," said Eric Guter, Air Products' Vice President, Hydrogen for Mobility.

As the world's largest hydrogen producer, Air Products has experience across the full value chain for hydrogen and is driving sustainable growth by building, owning, and operating the world's largest production, gasification, carbon capture, transportation and fueling projects. The company's technologies are used in over 1.5 million refuelings annually across 20 countries. With over 60 years of global hydrogen experience operating in over 50 countries, Air Products has the proven capability and know-how to make hydrogen through all available production methods and to distribute this increasingly important emission-free fuel safely, reliably, and economically.

B&W Posts Significantly Higher Sales and Earnings

·        Milestone 2021 with Significant Growth in Revenue and Net Income

·        Company Achieves its 2021 Adjusted EBITDA target

·        Highest Level of Annual Bookings since 2017

Q4 2021 Highlights

·        Revenues of $192.3 million

·        Net income of $30.2 million, more than six times net income in the fourth quarter of 2020

·        Earnings per share of $0.30

·        Consolidated adjusted EBITDA of $27.9 million

·        Bookings of $269.0 million, a 61.1% increase compared to fourth quarter bookings in 2020

Full Year 2021 Highlights

·        Revenues of $723.4 million

·        Net income of $31.5 million

·        Earnings per share of $0.26

·        Consolidated adjusted EBITDA of $70.6 million, meeting the Company's 2021 target of $70 million

·        Bookings of $779.0 million, a 20.8% increase compared to full year 2020 bookings

·        Ending backlog of $639.0 million, a 19.4% increase compared to the end of 2020

Babcock & Wilcox Enterprises, Inc. announced results for the fourth quarter and full year 2021.

"Our strong results for the fourth quarter and full year 2021, combined with recent and anticipated bookings, have positioned us for an even stronger 2022," said Kenneth Young, B&W's Chairman and Chief Executive Officer. "Looking back, we did what we set out to do in 2021—we achieved our 2021 adjusted EBITDA target of more than $70 million, booked four new renewable waste-to-energy new build projects and a fifth last month, closed several strategic acquisitions, continued building our ClimateBright™ decarbonization platform and ended the year with our highest level of annual bookings since 2017."

"Our recent acquisitions have strategically expanded our clean and renewable energy businesses," Young added. "We're excited about the substantial opportunities we see for solar installation and construction services in the U.S. through our Fosler Solar business, and we’ve launched our B&W Renewable Service platform for our expanding renewable service business in Europe through our acquisition of VODA A/S. Most recently, we expanded our portfolio of thermal and renewable technologies for hydrogen, natural gas and pulp and paper applications by acquiring FPS and we see significant potential for growth in those markets. We are continuing to explore additional acquisition opportunities in both emerging technologies and mature markets and aggressively pursuing opportunities to further increase shareholder value."

"Looking forward, we are reiterating our 2022 target of $110 million to $120 million in adjusted EBITDA. Our robust pipeline of more than $7.5 billion of identified project opportunities in the next three years, recent contract wins, and strategic acquisitions give us confidence in our ability to achieve significant year-over-year growth in 2022," Young stated. "While we expect 2022’s quarterly profile to follow our normal cyclical performance, which typically displays increasing profitability from the first quarter to the fourth quarter of each year, we anticipate that the full year 2022 will realize the potential and continued momentum of our ongoing growth strategies."

Full Year 2021 Financial Summary

Consolidated revenues in 2021 were $723.4 million, a 27.7% improvement compared to 2020. The improvement was primarily due to a higher level of activity in our Thermal and Environmental segments, expanded geographic presence and improved strategies to mitigate the continued impact of COVID-19, as well as the acquisitions of Fosler Construction and VODA in our Renewable segment. Net income in 2021 was $31.5 million compared to a net loss of $10.3 million in 2020. GAAP operating income in 2021 was $20.8 million, compared to an operating loss of $1.7 million in 2020. This increase was primarily due to the revenue increase discussed above; operating income in the prior year included the recognition of a non-recurring insurance loss recovery of $26.0 million under an October 10, 2020, settlement agreement with an insurer in connection with five of the six historical European B&W Renewable EPC loss contracts. The Company achieved its 2021 adjusted EBITDA target of more than $70 million, with adjusted EBITDA of $70.6 million compared to $19.7 million in 2020, excluding the non-recurring insurance loss recovery of $26.0 million in the third quarter of 2020 as described above. Total bookings in 2021 were $779.0 million, a 20.8% increase compared to full year 2020 bookings, and backlog on December 31, 2021 was $639.0 million, a 19.4% increase compared to December 31, 2020.

Reconciliations of net income, the most directly comparable GAAP measure, to adjusted EBITDA for the Company's segments, are provided in the exhibits to this release.

Babcock & Wilcox Renewable segment revenues were $156.8 million in 2021, compared to $156.2 million in 2020, primarily driven by the acquisitions of Fosler Construction and VODA on September 30, 2021, and November 30, 2021, respectively, and higher part sales offset by the timing of a large project order moving into early 2022. Adjusted EBITDA was $23.2 million compared to negative $1.0 million in 2020, excluding the non-recurring insurance loss recovery of $26.0 million recognized in third quarter of 2020 under an October 10, 2020, settlement agreement with an insurer in connection with five of the six European B&W Renewable EPC loss contracts, primarily due to improved project execution.

Babcock & Wilcox Environmental segment revenues were $133.8 million in 2021, an increase of 23.9% compared to $108.0 million in 2020. The increase was primarily driven by the postponement of several new projects in the prior year due to COVID-19 which have since resumed in addition to higher overall volume in ash handling, scrubbers, and precipitators. Adjusted EBITDA was $11.8 million, compared to $3.5 million in 2020, primarily driven by the higher volume as described above.

Babcock & Wilcox Thermal segment revenues were $433.3 million in 2021, an increase of 42.1% compared to $305.0 million in the prior-year, primarily due to a higher level of activity on construction projects, an increase in volume in the package boilers and parts business and the adverse impacts of COVID-19 on prior-year revenues.  Adjusted EBITDA in 2021 was $49.1 million, an increase of 36.3% compared to $36.1 million in the prior-year, primarily due to the increase in volume and the benefits of continued cost savings and restructuring initiatives.

Flowserve Announces Launch of Energy Advantage Program to Support Customers’ Carbon Reduction and Energy Efficiency Goals

Flowserve Corporation, a leading provider of flow control products and services for the global infrastructure markets, announced the launch of its new Energy Advantage program — a holistic flow control approach aimed at helping customers reach their carbon reduction goals and lower total cost of ownership.

Energy Advantage provides customers with Flowserve engineering expertise, a systematic data-driven evaluation process and a complete offering of products and services that can drive increased energy efficiency through optimization of pump and valve power consumption. From pump and control valve re-rating and replacement to our enhanced monitoring and predictive analytic services with RedRaven, Flowserve‘s offerings through the Energy Advantage program can also reduce customers’ carbon emissions, improve plant productivity and reliability, and provide operational savings.

“At Flowserve, we are driven by our purpose to provide flow control solutions that make the world better for everyone. As the world transitions to cleaner forms of energy and focuses on lowering carbon emissions, we too are focused on making a more sustainable future for our planet,” said president and chief executive officer, Scott Rowe. “Our Energy Advantage program provides a tangible way we can help our customers increase their energy efficiency, reduce carbon emissions and drive long-term sustainability.”

Rob Vitello, vice president, Energy Advantage added that, “Recently, four of our pumps included in the Energy Advantage program were installed to support a customer’s conversion of a refinery to a renewable fuels facility, which will yield 34% improved energy consumption, saving the customer 7,600 tons of CO₂ per year. These tangible results are at the core of this new offering, and we look forward to working with our customers to find the best fit for their needs.”

Energy Advantage is just one way in which we’re supporting existing and new customers during the energy transition, and we look forward to additional future opportunities.

Mitsubishi Heavy Industries and Institut Teknologi Bandung Extend Collaboration to Drive Decarbonization in Indonesia

Mitsubishi Heavy Industries, Ltd. (MHI) has concluded a memorandum of understanding (MOU) with Indonesia’s Institut Teknologi Bandung (ITB) to conduct joint research on clean energy solutions that will enable decarbonization in Indonesia. Activities will include feasibility studies, investigations, validations, and R&D for technologies that will power the country’s energy transition. The MOU will be in effect for five years, with the research results building the foundation for discussions to establish a joint R&D center in Indonesia.

MHI’s Head of Energy Transition and Power Headquarters Ken Kawai said: “MHI has been at the forefront of supporting Indonesia in its energy transition for nearly half a century. Through this continued partnership with ITB, we seek to develop clean energy solutions that will accelerate decarbonization in Indonesia. I am looking forward to a fruitful collaboration with ITB to achieve our mission net zero.”

ITB Rector, Ms. Reini Wirahadikusumah added: “During the past two years, we have been collaborating with MHI to conduct advanced feasibility studies in clean energy, especially in financial and technical evaluation of ammonia and biomass co-firing. I am sure that these activities will benefit the Indonesian power industry. I hope that the extension of this MOU will create more ideas and useful recommendations for Indonesia’s decarbonization journey.”

A previous MOU between MHI and ITB enabled joint feasibility studies on emerging energy sources such as hydrogen and ammonia, as well as air quality control systems (AQCS) and microgrid solutions. Since this MOU was signed in 2020, MHI and ITB also collaborated on training Indonesia’s future engineers by conducting joint lectures on topics including big data analysis, biomass, integrated coal gasification combined cycle, hydrogen and AQCS.

This new MOU comes at a time when Indonesia is ramping up efforts to decarbonize its energy sector evident in its recent commitments to reduce its greenhouse gas emissions by 29% by 2030 and achieve 23% renewable energy use by 2025.

ANDRITZ to Supply Germany’s First CO₂ Capture Plant For a Cement Works

International technology group ANDRITZ is to supply Germany’s first CO₂ capture plant based on the amine process to the cement works in Rohrdorf.

A pilot plant is currently being built on the southern side of Rohrdorf cement works for testing the general technical, quality, and economic conditions for CO₂ capture and conversion. Start-up of the plant is scheduled for the end of July 2022.

After a comprehensive test, the plant will be expanded and thus able to remove around two tons of CO₂ per day, from which basic chemicals required in the region will be extracted. These green hydrocarbons will be delivered to chemical works in the area, for example, and used as a basic material for hygiene and pharmaceutical products as well as for various plastics. The results of the pilot project are an important step in achieving the German cement industry's goal of being able to produce climate-neutral cement by 2050.

ANDRITZ has adapted the plant to the individual needs and specific features of Rohrdorf cement works in order to achieve optimum carbon dioxide purity in the output and, at the same time, longevity of the chemical solvent used in the capture process. A second plant at a Rohrdorf location is also in the planning.

ANDRITZ to Supply Another High-Efficiency Powerfluid Circulating Fluidized Bed Boiler to Japan

International technology group ANDRITZ has received another order from the HITACHI ZOSEN Corporation in Japan to supply a 52.7-MW PowerFluid circulating fluidized bed (CFB) boiler on EPS basis. The boiler will be part of the biomass power plant in Fukuyama, Hiroshima Prefecture, in Japan. Start-up is planned for 2025.

The ANDRITZ PowerFluid boiler will be integrated into a biomass-fired power generation facility that will be fueled by wood pellets, wood chips and palm kernel shells. With its high efficiency and state-of-the-art technology, it is the perfect solution to meet greenhouse gas reduction targets and contribute towards carbon neutrality in Japan. The biomass power plant will be capable of supplying power for roughly 110,000 Japanese households.

The new CFB project is the thirteenth ANDRITZ advanced CFB boiler for the Japanese market and demonstrates the excellent position ANDRITZ has in the biomass power plant market.

This order once again confirms ANDRITZ’s strong partnership with the HITACHI ZOSEN Corporation. ANDRITZ is proud to be part of this remarkable project and make another important contribution towards the Japanese power industry’s move from fossil fuel to renewable energy resources.

Focusing on the Unresolved Cost Factors in Dispute

The goal of the causation loops, such as the one on hydrogen, is to help the purchaser select those products which will result in lowest total cost of ownership

There is a hierarchy in the value  of the type of cost factor which can be communicated. Here they are from lowest to highest.

•        General cost factors, such as the cost of electricity in a particular location.

•        Specific process cost factors: At the next level are factors that are associated with  a specific process in a specific industry e.g., short run times for a product in cell and gene therapy and a product value of $ millions per gallon.

•        Product task cost factors: At the next highest level  there are factors associated with the product task e.g., gas turbine SCR system must address frequent temperature variations due to the cycling requirement.

•        New unresolved cost actors: The  next highest value is in addressing “ new unresolved factors.”  Hydrogen safety, combustion of ammonia in gas turbines, and similar factors have not been previously addressed due to the embryonic status.

•        Disputed Factors: The highest value is in addressing “Unresolved factors in dispute.” Magazines and conferences often specify that articles and speeches not be commercial. At the same time, they display advertisements which make claims for product superiority. There is a new media and conference trend to utilize the debate format. Despite concerns about acrimony, it has turned out to be a very valuable approach.

The debate approach can be used in webinars.  It can also be used in a blog type format where each side has his turn and then rebuttals are also sequenced.

The debate approach is particularly desirable for addressing the “unresolved factors.”

Unresolved Cost Factor - New: A New Trunnion Ball Valve For Control With Simplified Construction (Fisher™ V280) For Severe Service

•  How valuable are noise attenuation and anti-cavitation trims?

Emerson introduced this new valve in 2020. There are features which would reduce cost of ownership if competitors were not offering similar solutions.

Emerson introduced the Fisher™ V280 full-bore trunnion-mounted ball control valve for severe and specialty pressure, flow, and process control applications. The valve provides excellent dynamic process control by utilizing a robust drive train unique to the market that is designed to guide the shaft and properly absorb energy. Available attenuators for liquid and gas process fluids offer an effective solution for combatting the negative consequences of cavitation, such as vibration, erosion, and noise.

The body connections of the V280 valve have been reengineered to significantly simplify the design and reduce the number of parts, while utilizing the same construction for the inlet and outlet. This allows an easy retrofit of single or dual ball seals with standard or customized noise attenuating aerodomes, or anti-cavitation hydrodomes, on the inlet, outlet, or both. Typical applications include midstream oil and gas, particularly compressor anti-surge service.

The V280 is a fully rated ANSI class 900 valve, available in 6”, 8”, 10”, 12” and 16” sizes. A variety of high-performance packing materials are available, including ENVIRO-SEAL™ live-loaded packing. Optional special materials and constructions are available to accommodate specialty applications. The valve comes standard as a single-seal construction but is available with optional dual-seal construction, allowing bi-directional flow and double block-and-bleed operation. 

The standard offering V280 complies with the NACE MR0175/ISO 15156 Sour Service/Sour Crude oil standard, carries the full ASME B16.5 Class 900 flange rating, and can handle fluid temperature ranges from -20 to 180 degrees F. Alternate seal options can handle temperatures from -50 to 400 degrees F. The valve can be fitted with a number of different positioners or auxiliary devices to suit hazardous or challenging environments.

Together with the Fisher™ V260 and V270 valves, the V280 provides users with a complete portfolio of full bore ball control valves.

To learn more about the Full-Bore Severe and Specialty Ball Control Valve please visit: www.Emerson.com/FisherV280  

Thermax Q3 Order Booking up 57%

For the third quarter of FY 2021-22, Thermax posted a consolidated operating revenue of Rs. 1,615 crore, up 14% as compared to Rs. 1,411 crore in the corresponding quarter, last year. Profit after tax (PAT) stood at Rs. 79 crore, down 5% as compared to Rs. 83 crore in the corresponding quarter of FY21. Last year, exceptional expenses of Rs. 28 crore impacted the results due to the diminution of assets in subsidiaries. The current quarter margins were impacted by higher commodity and freight costs.

As on December 31, 2021, order booking for the quarter was 57 % higher at Rs. 2,462 crore (Rs. 1,565 crore) in the corresponding quarter, last year. Thermax Group had an order balance of Rs. 7,389 crore (Rs. 5,208 crore), up 42 %. In this quarter, Thermax Limited has concluded an order of Rs. 830 crore from an Indian power private sector company to set up flue gas desulphurization (FGD) systems for their three units of 660 MW capacity each in the state of Uttar Pradesh.

On a standalone basis, Thermax posted an operating revenue of Rs. 1,017 crore during the quarter, 13% higher as compared to Rs. 903 crore in the corresponding quarter, last year. Profit after tax for the quarter was Rs. 39 crore, compared to the loss of Rs. 3 crore in the corresponding quarter, last year. In the current year, exceptional expenses of Rs. 14 crore (Rs. 90 crore, last year) impacted the results due to the diminution of assets in subsidiaries. Order booking for the quarter, Rs. 1,893 crore (Rs. 1,020 crore) was 86% higher. Order balance on December 31, 2021, stood at Rs. 4,645 crore (Rs. 3,627 crore), up 28%

FGD and DeNOx Newsletter No. 526