December, 2019
No. 530

MARKET 

• Market Research from Leonardo DaVinci to IIoW

• Determining the Market for Your Product at Every Food Plant

• Most Profitable Market Program for Flow and Treat Companies in the Power Industry 

WOOD PELLETS

• Enviva receives Stamp of Approval to Voluntarily Install New Air Quality Equipment in Southampton Facility

ADDITIVE MANUFACTURING

• Powder Handling in Additive Manufacturing for the First Time Automated and from One Source

CARBON BLACK

• GORE^® LOW DRAG Filter Bags Lower Cost of Ownership

WELDING

• Welding Fume Risks Call for More Efficient Means of Fume Extraction

• A.C.T. Suggests Five Things to Consider When Shopping for a Weld Smoke and Fume Collector

COMPANY NEWS

• Donaldson Pleased with First Quarter Gross Margin Performance

• KraftPowercon Acquires Marsulex Environmental Technologies 

• Clyde Bergemann to Sell Pulp & Paper Segment while focusing on Emission Reduction for the Power Industry

• Filtration Services Group Receives Stalking Horse Purchase Offer

REGULATIONS

• Carper and Alexander Defend Mercury Rule

• Many Indian Coal Units Won’t Comply with Pollution Standards by 2022

• Proposed Consent Decree Against Lehigh Cement Would Require Installation of Additional Pollution Controls

MARKETS

Market Research from Leonardo DaVinci to IIoW

Market research is treated as a peripheral management tool but due to the abundance of available knowledge today, it can and should be used as the foundation of business plans.

There was a point in time when Leonardo DaVinci would have been the best market researcher for anything to do with art, medical science, or military engineering.  However, the world’s knowledge has been growing at exponential rates. Furthermore this knowledge is easily accessible as part of the Industrial Internet of Wisdom (IIoW).  Leonardo would be astounded to learn that you can analyze employment at a competitor’s pump factory by using google earth to count the cars in the parking lot; or that you can obtain a detailed description of the equipment in that plant from publicly available environmental and safety permits.

Market research in the combust, flow, treat industries can be likened to a criminal investigation. You start with eyewitness descriptions of the perpetrator. Then you create a police sketch representing the knowledge available. If this leads to an arrest, the next step is to prepare comprehensive evidence.

Since market research is typically considered to be a peripheral tool companies are content with guesstimates by sales and management people or a top down report by someone who is not familiar with the products and processes.  This level of effort is similar to just gathering eye witness descriptions.

When higher accuracy is deemed appropriate a company may acquire a McIlvaine multi-client report or an expensive study from one of the consulting firms. This is common in mergers and acquisitions. McIlvaine reports each contain as many as 50,000 forecasts for eight years for each product in each industry in each of 80 countries and sub regions.  This information is much more useful but could be classified as a high quality police sketch.

If market research is going to be the foundation of the business plan it requires more detailed information and the input of subject matter ultra-experts. The typical McIlvaine multi-client  reports have forecasts for each of 80 countries and regions segmented into 13  industries.

Determining the Market for Your Product at Every Food Plant

A program to help suppliers of flow and treat products sell to food producers has been introduced by the McIlvaine Company. It predicts the purchases of any product based on the tons of a specific food produced for the next five years. It provides enough technical details and process flow diagrams so that suppliers can craft lowest total cost of ownership (true cost) white papers. A route to the decision makers is also provided. The general program is explained at www.mcilvainecomany.com under Most Profitable Market Program.

Specific forecasts are available for each type of air pollution control, liquid filter or separator, pumps, valves, dryers, heat exchangers, instrumentation, software, steam and electricity generators, e.g., for bagasse. Analyses of the potential from each producer also takes into account by-products or finished products which are manufactured. For sugar this would include alcohol, ethanol and power generation. Here are the major food segments analyzed:

Cane sugar is being used as an example. It involves a number of  flow and treat processes.

The quantity of crushed cane or bagasse is more than the amount of sugar produced. The bagasse is a good fuel. Sugar mills are combusting it to generate steam for their use and electricity for use and for sale. They are also major producers of alcohol and ethanol. Therefore companies such as Cosan and Tereos, who are major cane sugar producers are bigger prospects than large beet sugar producers in Europe and the U.S.

Flow and treat analyses and forecasts are based on the present and future production in each country and for each significant producer. Here is an example of production forecasts for total sugar production through 2024.  We also have these for the cane and beet sugar segments.

The quantity of crushed cane or bagasse is more than the amount of sugar produced. The bagasse is a good fuel. Sugar mills are combusting it to generate steam for their use and electricity for use and for sale. They are also major producers of alcohol and ethanol. Therefore companies such as Cosan and Tereos, who are major cane sugar producers are bigger prospects than large beet sugar producers in Europe and the U.S.

Flow and treat analyses and forecasts are based on the present and future production in each country and for each significant producer. Here is an example of production forecasts for total sugar production through 2024.  We also have these for the cane and beet sugar segments.

The data is also available for the 250 largest sugar producers. We provide profiles and not only sugar production but also co-products such as ethanol.

Sao Martinho

Sao Martinho is a well-established Brazilian company that can trace its roots back as far as 1938. Sao Martinho was initially formed in a series of corporate takeovers in which sugar mills were purchased and incorporated into the main corporate structure of Sao Martinho. Prior to 2006, Sao Martinho was known as Companhia Industrial e Agrícola Ometto. Sao Martinho is one of the largest sugar companies in Brazil. Like the other major companies, it does not solely produce sugar, but also produces sugar ethanol as well as other sugar cane products. Sao Martinho currently has two mills dedicated to sugar and sugar ethanol production.

These mills are known as the Iracema Mill and Sao Martinho Mill.

It expects to process 8 percent more sugarcane in 2019/20 compared with the prior crop year. The company sees its cane crush rising to 22 million tonnes thanks to “better weather conditions and projects aimed at increased productivity, However, the amount of sugar derived from each tonne of cane will fall slightly. Sao Martinho said the total recoverable sugars are expected to be 139 kilograms per tonne, a 2 percent decrease from the previous season.

Sao Martinho predicted it would produce between 1.055 million to 1.4 million tonnes of sugar and 915 million to 1.1 billion n liters of ethanol in the 2019/20 season.

Here are sugar production forecasts for 2019 for some of the companies.

We analyze important product developments such as manufacture of cellulosic ethanol. 

Raizen completed construction of its first cellulosic ethanol plant where the ethanol will be produced from sugarcane residue. The company invested R$237 million in the plant that will produce 40 million liters of ethanol from sugarcane residue. The plant is located in the city of Piracicaba in the state of Sao Paulo and right next door to one of Raizen's sugar mills that makes sugar and ethanol from sugarcane. 

The sugarcane residue from the sugar mill is currently being burned to generate electricity to run the mill with the excess electricity sold back into the electrical grid. The company is now going to divert some of the sugarcane residue to its new facility to produce ethanol. The company feels there are a lot of saving and synergies by placing both plants next door to each other. 

Raizen originally estimated that its company-wide ethanol production would increase 50% by producing second generation ethanol. The company had planned to construct seven more cellulose ethanol plants in Brazil by 2024. All of the facilities would be built next door to their existing first generation ethanol plants that use sugarcane. All of the new plants combined could produce up to one billion liters of cellulosic ethanol. However, technical and economic factors have slowed that development. These problems have now been resolved and the company expects cellulosic ethanol to be an important revenue source.

We search for data which will help determine the true cost of a product such as a filter belt or drum filter.

Cordoba belt filters at the Raizen Costa Pinto plant are shown in the YouTube video

https://www.youtube.com/watch?v=EZtc_QaR0lw

The following paper is an example of gathering all the evidence. In an effort to compare belt filters with rotary drum filters several areas of interest were investigated over the 2012 and 2013 crops. These included pol losses, bagacillo ratio (bagacillo % feed/mud solids % feed), filter retention (mud in filter cake/mud in feed), filter capacity (filter cake production and removal of mud), belt wash water loss and flocculant usage.

The pol % filter cake average of 3.47. Pol % filter cake from drum filters ranged from 1.00 to 7.36 and averaged 4.08% pol. Belt filters had an average pol % filter cake of 2.36 with a range of 0.46 to 5.86%.

Crop flocculant usage averaged 0.022 lbs./ton cane. Belt filters used a little more flocculant (0.024) on average than drum filters (0.020). On average 5.21 lbs. pol/ton of cane are lost in filter cake for rotary drum filters. Belt filters lost on average 2.71 lbs. pol/ton cane. This included losses in the belt wash water based on a rate of 100 gallons per minute. The overall average filter cake production was 1443 lbs./hr./ft. width. Drum filters averaged 1080 lbs. filter cake and ranged from 128 to 2606 lbs. filter cake/hr./ft. width. Belt filters averaged 2781 lbs./hr./ft. width, almost three times the amount for drums, and ranged from 1509 to 4027 lbs./hr./ft. width.

Regarding belt filters only, the capacity seems to be very high with sugar losses comparable to that of drums. Maintenance costs have yet to be determined. Options for disposal of belt wash water should be considered. https://www.lsuagcenter.com/MCMS/RelatedFiles/%7BBB9E504C-EEAD-4D0C-8249-C67F42F775AA%7D/2014.pdf

A sales program can be constructed with the detailed knowledge of the future purchases at each plant.  the best contacts are easily determined through a LinkedIn initiative. Raizen has over 11,400 contacts. But if you want to talk about belt filters at the Costa Pinto plant you can start with the 18 people involved in filtration or the 185 people at the Costa Pinto plant.

For more information on the flow and treat program for the food industry contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com or 847-784-0013 or cell 847-226-2391.

Most Profitable Market Program for Flow and Treat Companies in the Power Industry

Market research has been used as a peripheral tool by power plant flow and treat product providers. Now it can be the foundation of a program to successfully pursue the Most Profitable Market (MPM). There is already enough information available through media, associations, conferences and internet resources to determine the best prospects and then convince them that the supplier has a better product.  McIlvaine can provide the market forecasts which can be used to pursue this unique new approach based on customer knowledge and not sales leads.

McIlvaine can provide the market research. Suppliers can promote their products in a structured and proactive manner by working with the media, conference organizers, consultants, and associations with a structured approach which breaks down traditional silos. Here is an example.

At PowerGen International in New Orleans Clarion introduced new approaches to organizing knowledge and connecting the seekers and those with the answers. There were Knowledge hubs and arranged meetings with programs called “Connect” and “Match” McIlvaine  contributed with organized knowledge access in a number of areas as explained at http://www.mcilvainecompany.com/PowerGen_2019/MPM/powergen_and_the_most_profitable.htm.

One successful example of  the structured proactive started with PowerGen Connect and ended with a brief meeting at a consultant stand. Speakers and exhibitors shared thoughts on flyash reclamation and reuse in the U.S. and India.  Another example utilized articles in Power Engineering plus the  knowledge of treatment chemical experts to analyze a very promising technology for improving efficiency of limestone scrubbers.  While this may be a minor opportunity in the U.S it is a huge opportunity in India and should continue to be pursued at PowerGen India and in conferences organized by Mission Energy who also has an upcoming 2020 flyash utilization conference in India. 

There were a number of valve exhibitors identified in the McIlvaine PowerGen tour guide. A very narrow application “turbine bypass valves” was selected to demonstrate the value of pursuing each niche.  McIlvaine is working with IVAMA (Indian Valve Manufacturers Association) and writes more than one feature article on valves each month for major publications. There are a number of good articles on valves archived in Power Engineering.

The support of utility associations such as EPRI, VGB, Mission Energy and others can be pursued because the MPM for suppliers is the lowest total cost of ownership solution for the operators.

McIlvaine tracks all the major power projects and has analysis of every coal fired power plant operator in the world with more than 1000 MW of installed or planned capacity.

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

McIlvaine tracks GTCC projects http://home.mcilvainecompany.com/index.php/markets/air/gas-turbine-and-reciprocating-engine-supplier-program as well as nuclear and renewable.

For 40 years it has sought to provide organized access to the information on coal fired flow and treat technology with http://home.mcilvainecompany.com/index.php/silobusters/44i-coal-fired-power-plant-decisions.

McIlvaine standard market reports provide the Total Available Market at each major prospect. With MPM this is expanded to identify and then convince those customers who will provide the company with the greatest profits.

McIlvaine needs assistance to forecast the most profitable markets. The supplier also needs this crucial information. It can be obtained in an organized approach where knowledge is shared.

WOOD PELLETS

Enviva receives Stamp of Approval to Voluntarily Install New Air Quality Equipment in Southampton Facility

Enviva Partners, LP, the world’s largest producer of wood pellets, received approval from the Virginia Department of Environmental Quality to install voluntary air quality equipment to further minimize emissions at its Southampton wood pellet production plant. Enviva’s modified permit will also allow for increased production and increased utilization of softwood (pine). The modifications came at Enviva’s request.

Following consultation in September 2018, the Virginia DEQ approved Enviva’s requested modifications to its existing air permit for the Southampton plant that will allow it to: 

• Install additional air emission controls equipment to further minimize air emissions

• Increase the permitted production volume by about 245,000 metric tons of pellets per year; and

• Increase the permitted percentage of softwood (pine).

Additional background information on the permits and Enviva’s operations:

• Enviva made a commitment to voluntarily install additional air emissions control equipment to achieve higher environmental standards for its Southampton plant..

• The new air quality control measures are designed to ensure that Enviva meets or exceeds applicable regulations while improving the efficiency of the plant. The Southampton plant will be subject to stringent testing on a regular basis by a third-party auditor.

ADDITIVE MANUFACTURING

Powder Handling in Additive Manufacturing for the First Time Automated and from One Source

Within the corporate network AM Powder Plus (AMP+) the companies assoniic Dostener Siebtechnik GmbH Solukon Maschinenbau GmbH and ULT AG and provide an integrated solution for automated part and powder handling in the SLM process (selective laser melting) for the first time. The end-to-end process combines the safe, automated depowdering of AM components with qualified processing and recycling of surplus metal powder. Unmelted powder is collected, sifted, dried and then returned in its original state to the production process. The solution guarantees a safe, dry process atmosphere as well as ensuring compliance with occupational health and safety regulations.

Each of the three participating companies contributes its specific and industry approved knowhow:

Assonic develops and manufactures high-end sieving machines whose screens are excited by ultrasound at frequencies of between 30 and 38 kilohertz. In addition, low-frequency vibration of the specially designed screening media ensure highly efficient sieving processes. By introducing fresh powder and deployment of a drying method developed jointly with ULT, the process leads to consistently high powder quality, which is indispensable in quality-assured metal PBF production.

This conditioning knowhow meets with Solukon’s extraction and powder removal technology. Since its launch in 2013, Solukon has acquired customers such as Daimler, AUDI, MTU, Lockheed Martin and the Ariane Group, for whom the Solukon machines automatically remove powder from AM components almost without any manual work. Thanks to programmable rotation of the parts, these systems are far superior to manual methods and make an important contribution to the industrialization of AM production with their high quality, reproducible cleaning results.

ULT as third partner contributes its air treatment knowhow to the overall solution. High-tech extraction and filtration technologies ensure continuous cleaning of inert gases, which are mandatory in PBF manufacturing processes. In addition, ULT offers solutions for highly efficient process air drying, a key function for the stable operation of metal PBF systems. When the fine metallic powder materials absorb humidity, they become unusable for sensitive PBF systems, especially as they tend to form clumps and oxidize. In addition, the extraction and filter technology ensures compliance with occupational safety regulations, explosion protection practices and clean workplace solutions along the entire process chain, including post-processing.

The combined expertise of the AMP+ partners are the building blocks of the overall solution: efficient powder preparation, automated powder removal and a comprehensive approach to air preparation and conditioning. AMP+ now offers industrial users worldwide integrated solutions that are also available as individual modules — and implements them in turnkey projects.

CARBON BLACK

GORE^® LOW DRAG Filter Bags Lower Cost of Ownership

W. L. Gore & Associates introduces GORE^® LOW DRAG Filter Bags for use in pulse-jet carbon black manufacturing operations. For the past two years, Gore’s proprietary GORE LOW DRAG Filter Bag technology has provided a sustainable and low-cost-of-ownership solution for reverse-air carbon black operations. Now, the benefits of this technology are extended to pulse-jet carbon black applications.

Comprehensive pilot programs have confirmed the significant value GORE LOW DRAG Filter Bags can provide in carbon black pulse-jet baghouses:

• A more easily cleaned filtration surface: This allows operators to reduce pulsing pressure and frequency, without any reduction in desired production levels.

• An expected increase in bag life: By reducing the level of mechanical stress during cleaning, bag life may be prolonged by as much as 50% or more.

• Improved process stability: Gore’s proprietary membrane technology enables lower, and more stable, differential pressure (dP) between cleanings which supports a more stable process.

• Optimized throughput and emissions: GORE LOW DRAG Filter Bag technology enables higher airflow than standard filter bags, and pilot studies also have reported improved production rates and lower emissions. 

GORE LOW DRAG Filter Bags offer carbon black producers a reliable way to achieve both higher performance and lower costs in manufacturing, maintenance and compliance.

“The rapid adoption of GORE LOW DRAG Filter Bags by reverseair carbon black baghouses led us to expand this technology portfolio,” said Steve Aubuchon, Product Specialist. “We are pleased that our GORE LOW DRAG filter technology now offers both pulse-jet and reverse-air operators a cost-effective way to extend bag life, improve process stability, and reduce emissions.”

“The value of our proprietary GORE LOW DRAG Filter Bag technology lies in how it can address so many of the concerns the carbon black industry faces today: the need to optimize output while enhancing environmental compliance and process stability, and at the same time, reducing cost of ownership,” said Aubuchon.

WELDING

Welding Fume Risks Call for More Efficient Means of Fume Extraction

Mild steel welding is the most common method of welding today, essential to any industry that uses welding in its production process. Recent scientific evidence has indicated that the fumes generated by this process are in fact carcinogenic. While we are yet to see the full consequences of this discovery, it is evident that there is going to be an increased focus on the health and safety of welders, and the methods by which they can be guaranteed, explains Klaus Bihlet of Nederman on their website.

While different welding methods give rise to different amounts of fumes, they all contain various concentrations of hazardous substances. Chrome, manganese, nickel, NO_x and CO are among the most common and dangerous of these. As the smaller particles tend to end up deeper inside the lungs when inhaled, they are – along with the gases — considered to pose the greatest health risk.

Legislation regarding workplace safety requirements varies considerably between nations. Within Europe, however, the European Union sets certain minimum requirements with which its member states must comply. These requirements concern a variety of workplace factors, including air quality and limit values on certain hazardous substances. Many countries have legislation that has met these requirements for years, but the recent development in the United Kingdom is arguably a significant step toward stricter regulations on mild steel welding. Other countries, most recently Germany, have taken legislative steps that indicate that they too are likely to impose stricter welding fume legislation in the near future.

At-source extraction (also known as at-source capture) has been found to be the most effective way of collecting and removing fumes. That said, the best solution can still be portable, stationary, central or customized, depending on the welding process and the environment in which it takes place. The Nederman Fume Eliminator is an example of a product that can easily be moved and carried around within a factory or workshop for the — such as extraction arms and extraction reels, or welding and grinding tables, or  —remain the most common means of fume extraction, and will continue to be, as they will replace recirculating systems in several long time welding operations.

A.C.T. Suggests Five Things to Consider When Shopping for a Weld Smoke and Fume Collector

Weld smoke and fumes are a leading source of air contamination and must be captured. But as challenging as it is to capture smoke and fumes from welding applications, it can be just as difficult to find a weld smoke and fume collector to fit your manufacturing  environment.

It’s important to consider more than just the welding dust collector price. When evaluating dust control options, consider the cost of consumables. Expenses associated with this may include:

1. Replacing filter cartridges

2. Delivery cost for replacement parts

3. Labor cost to switch out parts

4. Cost of maintaining inventory (to eliminate downtime while waiting for replacement parts)

5. Lost production while replacing parts

To minimize the cost of consumables, the most important things to consider are the life cycle and efficiency of components. Simply put, the longer the lifespan of a part, the less frequently it will need to be replaced. Look for equipment with high-quality, efficient filters and components with a warranty to back up quality standards.

Downtime to perform maintenance or switch out a part equates to labor cost, so consider equipment that is of high quality that won’t need excessive maintenance beyond the typical filter change-outs and cleaning operations. By reducing the frequency of part replacement, saves both time and money.

When looking to purchase a dust collector, consider the work it takes to perform a standard filter change out. How hard is this process and how long will it take? Some systems require entering the dust collector to change the filters, while on other systems a filter change out can be completed with no entry to the collector.  Also, something as simple as the removal of a filter door can require much more work on some systems than others.

This is another reason why part quality and long service life are paramount to cost-saving. This should also be considered when buying the dust collector. Lower air-to-cloth ratios will result in better filter life, lower electrical consumption and fewer disposal costs.

Every industrial dust collector A.C.T. Dust Collectors manufactures comes standard with high-efficiency Nano-Elite cartridge filters that feature a MERV 15 efficiency rating for effective collection of extremely fine dust, smoke and fume — capturing 99.99 percent of particulate from the air.

COMPANY NEWS

Donaldson Pleased with First Quarter Gross Margin Performance

Donaldson Company, Inc. reported 1^st quarter 2020 net earnings of $65.0 million, or $0.51 per share, compared with $73.8 million, or $0.56 per share, in 1^st quarter 2019.

“We are pleased with  1^st quarter’s gross margin performance, and we remain on track to deliver another consecutive year of record profit,” said Tod Carpenter, chairman, President and Chief Executive Officer. “As expected, demand in the  1^st quarter was uneven. The market for new equipment was soft, sales of replacement parts were more stable, and growth businesses like Process Filtration were up notably from last year.

“We expect growth in our “Advance and Accelerate” portfolio will continue to outpace the company average, supported by further investments to gain share, while customer cautiousness combined with peaking levels of equipment production will likely pressure our “Critical Core” portfolio. Increasing gross margin remains our top operational priority, and we are making progress bringing new capacity online and optimizing our supply chain. We are also making progress on our initiatives to drive innovation, including our new Materials Research Center and recently announced commercial launches of connected solutions offerings. We are excited about our opportunities, and I am confident that we are well-positioned to navigate near-term unevenness while strengthening our foundation for long-term, profitable growth.”

The 1^st quarter 2020 sales declined 4.1 percent to $672.7 million from $701.4 million in 2019. Factors affecting the year-over-year sales change include:

1. Currency translation negatively impacted sales by approximately 1.4 percent,

2. The acquisition of BOFA International LTD (“BOFA”), which was completed in first quarter 2019, contributed an increase of approximately 1.1 percent, and

3. Price increases added approximately 0.6 percent.

The 1^st quarter sales of Industrial Products (“Industrial”) declined 3.2 percent, or 2.0 percent excluding the impact from currency translation. Industrial realized benefits of approximately 3.6 percent from BOFA and 0.2 percent from pricing. Sales of Industrial Filtration Solutions (“IFS”) reflect benefits from BOFA and strong growth in sales of Process Filtration products, partially offset by lower sales of new equipment. The Gas Turbine Systems (“GTS”) sales decline was primarily driven by lower sales of new equipment, and the decline in sales of Special Applications (“SA”) was primarily driven by Disk Drive filters.

KraftPowercon Acquires Marsulex Environmental Technologies 

KraftPowercon Sweden AB announces the acquisition of 100 percent ownership of Marsulex Environmental Technologies Corp. (MET). U.S.-based MET is a technology leader in Air Quality Control Systems (AQCS), specifically in the control of particulate (dust) and gaseous emissions from power plants and industrial boilers.

For more than eight decades, MET has provided air pollution control systems and services that cost-effectively minimize pollutants, including sulfur dioxide (SO₂), particulates, nitrogen oxide (NO_x), mercury and acid gas from emissions of electric utilities, petrochemical and general industrial facilities around the world. In the U.S., MET maintains facilities in Lebanon, PA and Hampton, NJ while operating globally, predominantly in the Americas and Europe.

The acquisition will enable MET to introduce cost-efficient electrical upgrades of Electrostatic Precipitators (ESPs) using KraftPowercon's advanced technology “SmartKraft” and '”icroPulse” power supplies. This technology is by far the lowest cost means of upgrading ESPs to achieve particulate emission compliance.

"We hope to integrate MET's qualification and experience in the ESP business, together with KraftPowercon's advanced power supplies, in order to enable MET to offer solutions for electrical upgrades of ESPs to meet tougher dust emission norms," said Ranjit Jakkli, Managing Director of KraftPowercon. "An electrical upgrade eliminates the need to increase the physical size of the ESP, making it the lowest cost, and most space/downtime-efficient means of achieving compliance with modern particulate emission levels. MET will continue to actively pursue its current markets with its suite of AQCS products to support the industry's demand for lower emissions."

KraftPowercon is a global company headquartered in Gothenburg, Sweden, manufacturing power supplies and rectifiers for a variety of industrial applications including ESPs, Ballast Water Treatment, production of Industrial Gases such as Hydrogen, as well as Surface Treatment and production of semiconductors. The company has manufacturing facilities in Sweden, China and India.

Clyde Bergemann to Sell Pulp & Paper Segment while focusing on Emission Reduction for the Power Industry

Clyde Bergemann Power Group (CBPG), a globally operating developer of components and systems for the optimization of processes in power and energy plants, has sold its paper & pulp segment to Wynnchurch Capital, a U.S.-based private equity firm with a focus on small and mid-sized businesses. The parties have agreed to not disclose any details about the transaction, which marks a milestone for CBPG’s strategy — to focus increasingly on the core business in the power industry. The funds from the sale are to be used primarily for important future investments.

Clyde Bergemann Power Group, headquartered in Wesel, Germany, has been active in the area of power plant on-load boiler cleaning for almost 100 years and is one of the global market leaders in this field. The key components and systems developed by CBPG allow for efficient, safe and particularly low-emission operation of power plants as well as waste incineration and petrochemical facilities. After the successful restructuring of the group’s US and European operations over the past years, along with an expansion in the Asian market, both shareholders and the management aim to position the group for its future course with the sale of the pulp & paper segment:

“High-performance products for the global power industry are our special strength. Especially in a market that is experiencing major changes, our goal is to ensure that fossil fuel-based power can be supplied safely, reliably and with as little CO₂ emissions as possible”, says Dr. Christian Mueller, President & CEO of CBPG, “We are convinced that our segment specializing in cleaning systems for black liquor-fired boilers in the pulp & paper industry will continue on its success path under its new owner.”

The pulp & paper segment has experienced particularly strong growth in South America. The new company will operate as Clyde Industries and consist of six subsidiaries in the USA, Canada, Columbia, Brazil, Finland and Indonesia with long-standing experience in their respective pulp & paper markets. Clyde Industries will be headquartered in Atlanta, Georgia.

The repositioned Clyde Bergemann Power Group will consist of twelve subsidiaries worldwide with a total revenue within the triple-digit million range and will be managed by Clyde Bergemann Management GmbH. As a key supplier of components, it will support power plant operators in improving process efficiency and reducing emissions. It will continue to act as a technology leader and global partner for retrofitting and new construction in the fossil fuel-based power industry and at the same time benefit from the globally increasing demand for biomass plants, environmentally-friendly waste incineration facilities and similar installations in the petrochemical industry.

“With new funds for investments based on a solid product and financing structure, we are optimally positioned for a demanding international market, the challenges of digital transformation and the further expansion of our business operations”, says Dr. Christian Mueller. 

Filtration Services Group Receives Stalking Horse Purchase Offer

Filtration Services Group (FSG), among the nation's leading filtration products and services companies and a prominent supplier to General Motors, has received a stalking horse offer to purchase the company. The announcement was made by Keith Chulumovich, Chief Restructuring Officer.  

If approved, FSG hopes to complete the transaction by the end of the year. It is expected that President Bob Jackson will assist with the transition as new ownership and management is put in place.

In August of 2019, FSG filed for Chapter 11 bankruptcy protection after the Company was unable to secure additional operational financing. In September, Keith Chulumovich of Bloomfield Hills, MI-based O'Keefe, a financial and operational management consulting firm, was appointed by the court as Chief Restructuring Officer.

"Filtration Services Group possesses a longstanding reputation of excellence within the industry, outstanding employees and a strong foundation for growth," said Chulumovich. "There has been significant interest in this Company due to its exceptional customer relationships and extensive product line."

FSG operates in a range of industry sectors including automotive, healthcare, hospitality and residential, with products and services for testing and preventative maintenance programs for HVAC and Air; Dust Collection; and Compressed Air, Liquid, Hydraulic and Rolled Media.

Founded in 1972 and based in Waterford, Michigan, Filtration Services Group also has offices in Oklahoma City, OK.

REGULATIONS

Carper and Alexander Defend Mercury Rule

U.S. Senators Tom Carper (D-DE), top Democrat on the Environment and Public Works Committee and Lamar Alexander (R-TN), Chairman of the Energy and Water Development Appropriations Subcommittee, penned an op-ed published in USA Today defending the Mercury and Air Toxics Standards (MATS), protections that have cost-effectively reduced toxic air emissions from power plants since 2012. In the op-ed, Senators Carper and Alexander urge the Environmental Protection Agency (EPA) to reverse course on their December 2018 proposal undoing the mercury rule, writing that it has improved public health and supported economic growth in Delaware, Tennessee and throughout the country.

“The mercury rule, which limits mercury emissions from coal- and oil-fired power plants, has resulted in 90 percent less mercury in the air than a decade ago. But now, the Environmental Protection Agency is moving forward with a proposal that asserts it is no longer ‘appropriate and necessary’ to protect the public from our country’s largest sources of mercury and air toxic emissions,” the senators wrote.

The senators continued, “Changing the rule after billions of dollars have already been spent means that utilities will have less certainty about federal regulations, and it will be more difficult to maintain steady electricity prices for American families in the future. The gains we have made over the past decade to protect children and families from dangerous mercury pollution should not be lost.”

Many Indian Coal Units Won’t Comply with Pollution Standards by 2022

An analysis of Central Electricity Authority (CEA) data reveals that over half of India’s 440 coal units will not comply with new pollution standards by early 2022, even though the Association of Power Producers (APP) argued that it would take between 27 and 30 months for flue gas desulfurization (FGD) units to be installed. FGD units dramatically reduce sulfur dioxide emissions. The Indian Government’s original deadline was for all coal plants to comply with the new pollution standards by December 2017 but, following lobbying by the APP, which represents companies including Adani Power, the deadline was extended until December 2022 with a staggered timetable for compliance. The CEA data indicates that 267 units, which have a combined capacity of 103,400 MW, are scheduled to comply with the standards by February 2022. However, the owners of 224 units, which have a capacity of 84,800 MW, have not yet ordered FGD units.

Proposed Consent Decree Against Lehigh Cement Would Require Installation of Additional Pollution Controls

On December 3, 2019, the Dept. of Justice lodged a proposed Consent Decree with the United States District Court for the Eastern District of Pennsylvania in the lawsuit entitled United States, et al. v. Lehigh Cement Company LLC and Lehigh White Cement Company, LLC.

In a Complaint that was filed simultaneously with the Consent Decree, the United States and seven states and state or local agencies seek injunctive relief against Lehigh Cement Company LLC and Lehigh White Cement Company, LLC and penalties against Lehigh, pursuant to the Clean Air Act, for alleged violations of the Prevention of Significant Deterioration provisions of the Act, 42 the nonattainment New Source Review provisions of the Act, the federally- approved and enforceable state implementation plans, which incorporate and/or implement the above listed requirements; and corresponding state laws. The Complaint alleges claims at one or more of eleven Portland cement facilities located in eight states owned or operated by Lehigh or Lehigh White. The states and state or local agencies that have joined the Complaint and are signatories to the Consent Decree consist of Indiana, Iowa, Maryland, New York, the Pennsylvania Department of Environmental Protection, the Jefferson County Board of Health (Alabama), and the Bay Area Air Quality Management District (California).

The Consent Decree would require installation of emissions control technology for nitrogen oxides (NO_x) and sulfur dioxide (SO₂), emissions monitoring systems, and set specified NO_x and SO₂ emission limits (except that the emission limit for SO₂ at the Cupertino, CA facility would be established through a testing program). The Decree would also require Lehigh to pay a civil penalty of $1.3 million and perform a mitigation project involving upgrading two off-road vehicle engines at an estimated cost of $650,000, which is expected to reduce smog-forming NO_x by approximately 25 tons per year.

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