FABRIC
FILTER       NEWSLETTER 

 

April, 2020
No. 534

PANDEMIC

POWER GENERATION 

COMPANY NEWS

PRODUCT NEWS

PANDEMIC

Coronavirus Impact on the Filtration Market - Large or Small? 

The filtration market is being transformed by the COVID-19 virus. Suppliers need answers to the following: 

·         Magnitude of the impact in the short term

·         Magnitude of the impact in the long term

The answers depend on the following factors:

·         To what extent is the virus transmitted through the air?

·         Will the virus keep reoccurring?

·         Will COVID-19 devastation result in permanent upgrades in health expenditures for flu, HAI and other major infectious    diseases?

·         How can masks and air filters best be used to meet the new goals?

 

The market impacts can be categorized from least to most important.

The range of impacts for surgical and N95 masks is:

·         Least - surge in mask use for the next six weeks and then an oversupply from China makes for a very weak long-term market

·         Most - the world and individual environment is segmented based on safe zones ranging from unsafe to very safe. Time spent in any unsafe or less safe zone would be with a mask.

 

The following chart shows the worst and best case scenarios. The normal scenario would have been for a small percent increase in sales in 2020 over 2019.

pic1 

In the worst and best case-scenario, sales skyrocketed in the first quarter of 2020 with China increasing production to 200 million masks, per day.  N95 masks increased from 200,000 to 1.2 million. In the worst-case scenario, the sales decline rapidly in the third quarter 2020 and fall to normal levels in 2021. This causes major supplier problems because of overcapacity.

In the best case-scenario many of the world’s 8 billion people are routinely wearing masks in unsafe and semi safe areas. Even if masks are reused 20 times this is 400 million masks purchased each day.

One variable is the efficiency of masks selected.  You have the lower quality, the N95 and even the N100 for better virus capture. Another variable is single use vs reusable.  A $15 reusable mask with 20 reuses would generate the same revenues as a .75 cent disposable mask.

The range of impacts for HVAC filters and room purifiers is:

·              Least - sales are higher for the next few months but then revert back to the level which would have been achieved without the coronavirus.

·       Most - the recognition of viruses and other infectious diseases spurs a permanent increase in the health care, commercial and residential markets of 30 percent or more. There would be safe zones which are protected by local filtration systems. There would be a need to create safe zones on a temporary basis. This could lead to a big rental market. The number of air changes per hour in many buildings could be increased along with the installation of HEPA filters.

The normal growth for air filtration in healthcare, commercial and residential would have been about 5 percent per year. In the worst-case scenario sales are up 10 percent by June of this year. They drop to just 3 percent above the January 2020 level at the beginning of 2021 and are back to pre-corona growth levels by June 2021.

With the best-case scenario sales are up 15 percent from the January level by June 30. They rise to 20 percent above 2020 by the beginning of 2021. By June 2021 they are 30 percent higher than in January 2020.

The spread for HEPA filters is more than 100 percent in the sales forecast. For room air purifiers with HEPA filters the spread is more than 200 percent. The rental market could develop from 0 to hundreds of millions of dollars worldwide 

The widespread in the size of the future market makes it highly desirable to make the best possible forecasts and update them continually. McIlvaine is providing this in Coronavirus Market Intelligence.

Click here for more information,

Bob McIlvaine can answer your questions at 847.226.2391 or rmcilvaine@mcilvainecompany.com.

Pandemic Impact on the Filter and Mask Market

The world needs to address the pandemic with a solution which is safe but allows near normal functioning of business and society. McIlvaine believes that by using the latest cleanroom and hospital mitigation technologies, this Distancing and Sheltering Alternative can be safely cost effective. 

The extent to which it will be employed has major implications for the filter and mask markets. It could triple the media market and double the filter equipment sales 

pic1

The potential to change the mask market is even greater. In any case the market will be much larger. In addition, meltblown media may be largely replaced with new washable and more efficient nanofiber membranes.  New mask designs built around a permanent washable structure with replaceable filtration media inserts could capture market share.

pic2

The distancing and sheltering alternative involves the following technologies in combinations in which optimize the life quality costs. Each technology will be used to the extent that benefits outweigh the costs.

  pic3

Air Filters and Systems: Here are some factors which will determine whether the air filter market boost will be modest or very large.

·         The ability of viruses to travel long distances including through HVAC systems

·         The ability of HEPA filters to capture the COVID-19 viruses

·         Percentage of world population who will contract the disease

·         The ability of the virus to reappear in areas previously impacted

·         Willingness of governments to support the investment in filtration systems to address the problem

·         Coordination in a proactive program which combines air filtration technology with personal protective equipment and operating practices

·         Acceptance of a common metric to measure the life quality impacts as well as economic costs of alternative strategies (McIlvaine has prepared analyses based on Quality Enhanced Life Days)

·         Education of governments, industries, and individuals relative to the science and impact 

Masks: The market for face masks will soar over the next few years. Suppliers need to continually seek answers to the following questions.

·         How big will the market be in the short term?

·         Will demand drop when a coronavirus vaccine is in wide use?

·         How much will people pay for a mask?

·         What will be the ratio of masks to protect wearers vs the public or both?

·         What will be the ratio of disposable vs reusable?

·         What materials are most compatible with various decontamination methods?

·         What will be the role of nanofibers and other materials to compete with spunbond, meltblown laminates?

·         What will be the market segmentation between do it yourself, medical masks, surgical masks, N95, N95 medical, elastomeric reusable, novel designs? 

Geography: There are separate analyses which need to be applied to each country.

·         Projected infection rate

·         Population

·         Mitigation Policies

·         Existing healthcare and business structure

·         GDP and ability to undertake an effective program

 

Associated Technologies: A number of associated technologies will shape the market. 

·         Masks can be decontaminated and reused

o  What are the economics of H2O2 vs alcohol, vs ozone, UV, heat etc.?

o    What is the existing equipment which can be used?

o    What is the cost of new equipment?

·         Rooms and HVAC systems can be treated with UV light

Competition: A number of competitive factors will shape the market for the individual suppliers.

·         Regional demand fluctuation. The large surge of mask demand and production in China will have implications for the      worldwide market.

·         Innovative technology:

o    The use of membranes in filters and masks is likely to greatly influence the markets.

o    There are major developments in filter and mask designs.

All of the factors which will shape the market are covered first in the Daily Coronavirus Market Alerts. They are then analyzed. The conclusions are then reflected in continuously updated forecasts.

Details on Coronavirus Market Intelligence are found at http://home.mcilvainecompany.com/index.php/markets/air/82ai-coronavirus-market-intelligence.

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

POWER GENERATION 

ITK Envifront Receives New Order from ENA Energi AB

ITK Envifront has signed a contract to design, supply, erect and commission a complete flue gas cleaning plant to ENA Energi AB in Enköping. This scope consists of two parallel bag house filters and limestone plus activated carbon dosing station. The new filter plant will replace an old electrostatic filter plant. Erection and start-up will be done during summer 2020. Total order value is more than 22 million SEK (roughly €2.2 million).

The power plant in Enköping uses biomass to provide 55 MW district heating and 24 MW electricity to the nearby city. ENA Energi AB invests to improve the local environment and reduce emissions of both dust and other hazardous compounds.

Hamon Korea Supplying Dry Scrubber and Dry Sorbent Injection FGD Systems

Hamon has successfully supplied its FGD Dry Sorbent Injection System for Sulsel Barru (100-MW boiler) in Indonesia for PT PLN (Persero) with Toshiba JSW Power Systems Pvt. Ltd.

In 2015 it installed a circulating dry scrubber system. South Korean electricity company Gunjang Energy decided to install a new unit, called Seagull, at its existing power plant at Gunsan city. The circulating fluidized bed (CFB) boiler size was 275 MW and it needed to fulfil strict emission requirements, which came into force in January 2015. Therefore, a suitable flue gas desulfurization (FGD) technology to meet this limit became mandatory. Gunjang Energy wanted to install the most economical FGD technology for these demands, and therefore selected circulating dry scrubber (CDS) technology. The contract was awarded to Hamon Korea in June 2014 and commercial operation started on May 18, 2016.

The basic principle underlying a CDS is the removal of gaseous components and a downstream filter for dust removal. The flue gas from the upstream boiler flows through the CDS and then a filter and is released into the atmosphere via induced draft fans and stack.

The main component for the removal of waste gases is the CDS with the high solid concentration situated inside it. These solids contain the dust brought in by the raw gas, a metered quantity of hydrated lime as the absorbent, and over 90 percent of FGD product, re-circulated from the downstream arranged filter.

The FGD is located downstream of the air preheater in the power plant arrangement. The CDS system itself consists of a CDS absorber, a low-pressure fabric filter with eight chambers for dedusting downstream of the CDS absorber, the connecting ductwork including the recirculation duct, the ID fans downstream of the fabric filter and the connection to the stack. All equipment has been installed in a compact and space-saving way.

COMPANY NEWS

B&W Generated Consolidated Adjusted EBITA of $33.3 Million, Returning to Full-year Profitability on An Adjusted EBITDA Basis

Babcock & Wilcox Enterprises, Inc. announced 4th quarter 2019 GAAP income from continuing operations of $5.5 million, an improvement of $232.8 million compared to a loss of $227.4 million in 4th quarter 2018. Adjusted EBITDA was a positive $19.3 million, an improvement of $133.5 million compared to negative adjusted EBITDA of $114.2 million in the prior year period, resulting in the company's third consecutive quarter of profitability in 2019 on an adjusted EBITDA basis.

Full year 2019 GAAP income from continuing operations was a loss of $129.7 million, an improvement of $528.3 million compared to a loss of $658.0 million in 2018. Adjusted EBITDA was a positive $33.3 million, an improvement of $331.0 million compared to negative adjusted EBITDA of $297.7 million in the prior year, returning the Company to full-year profitability in 2019 on an adjusted EBITDA basis.

"Our solid performance in the fourth quarter of 2019 shows we have turned the corner toward profitability and demonstrates the strength of our improved operational performance and cost-savings efforts. Our GAAP operating income of $10.0 million and consolidated adjusted EBITDA of $19.3 million in the quarter directly reflect the value of underlying assets within our core business," said Kenneth Young, B&W Enterprises Chief Executive Officer. "Before we began to feel the effects of COVID-19, the business was progressing as planned in the 1st quarter of 2020. However, like many companies around the world, the global COVID-19 pandemic and the many measures taken by local and national governments to control its spread continue to impact our operations, and we are not able to fully predict the extent or timing of the impact. Many projects are delayed or deferred as our customers are also following local or national restrictions. We have implemented work-at-home mandates in many locations and we are deemed an essential business, so we can continue operations and support when requested."

"We are in continual contact with our employees, customers, suppliers and government officials to collaborate on approaches to the challenges the pandemic presents," Young continued. "The work we do is essential to the U.S. and global power generation infrastructure, and our technologies are also used by several hospitals and pulp and paper industrial customers. We are committed to supporting our customers during this crisis."

"We ended 2019 having made significant progress with the implementation of previously announced cost-savings initiatives, to reach approximately $119 million in annualized savings, as the first step toward optimizing our business while maintaining our high standards of quality and service," said Louis Salamone, B&W Enterprises Chief Financial Officer. "We have a proven and experienced management and employee team that engineered the turnaround of our business, and they are even more determined as we plan and implement changes throughout our operations in response to the unprecedented impacts of COVID-19. We are focused on managing our costs and cash flow through this crisis, while continually evaluating the effects of the financial market disruption on our business, to support our customers in the long-term."

Sargent and Lundy Acquires Summit Engineering

Chicago-based engineering consultancy Sargent & Lundy has acquired Summit Engineering Services Inc, an independent multidisciplinary design engineering firm that works in the oil and gas sector. The acquisition will increase Sargent & Lundy's geographical presence across O&G basins in the U.S.

With offices in Colorado, Wyoming and Texas, Summit Engineering employs around 100 staff and works across all O&G verticals. The firm provides a full range of engineering, design, project and construction management services using interdisciplinary engineers and designers that become integrated into clients’ own project teams. Its team will join Sargent & Lundy’s energy and industrial business group led by its EVP Thomas Meehan.

Sargent & Lundy chairman, president and CEO Thomas White said: "Sargent & Lundy has made strides over recent years to establish a presence in the oil and gas sector, successfully performing work for several gas pipeline projects. This acquisition is a strategic next step to build on that progress, expand our oil and gas service offering and capabilities, and advance our 129-year evolution.

"Summit is a highly respected firm and an excellent fit for us. I'm confident our new oil and gas specialists will make a great addition to our team. 

Summit Chief Executive Officer Jack Hamlin said, "After building our business and observing the evolution of the energy sector, we decided that now was the right time to merge with Sargent & Lundy. This transaction will allow us to offer a new range of services to better respond to industry needs and capture market share. 

Unfortunately for Sargent & Lundy, the timing couldn’t have been worse as global oil prices slip to lows rarely witnessed since the turn of the millennium (EA 01-Apr-20). And prices may slump further yet (EA 18-Mar-20).

Andritz Has Received an Order from Zhejiang Yanpai Filtration Technology Co., Ltd. in China to Supply Three Needlepunch Lines

Startup of the lines, which will produce high-quality needle-punched filter felts, is planned from the fourth quarter of 2019 to the first quarter of 2020.

The proven ANDRITZ needle-punch lines will enable YANPAI to obtain high output and also minimize the downtime required. This order illustrates the important position ANDRITZ holds in the market with its aXcess equipment, which allows solutions to be customized to suit the producers’ needs perfectly.

YANPAI is one of the leading producers of nonwoven filters for dust and air treatment. Established in 1990, YANPAI was at the forefront in development of new industrial filtration fabrics. YANPAI is a leading company in the production of woven filter fabrics and one of the world’s major manufacturers of nonwoven needle felt products. The company mainly manufactures filter fabrics for solid/liquid separation.

Camfil APC Still Going Strong After Tornado

On Saturday March 28, 2020 at 5:00 pm local time, an EF-3 tornado damaged the Camfil APC manufacturing facility in Jonesboro, AR. Thankfully, no employees were on site, so no one was hurt.

Much of the campus remains intact and fully operational, including administrative offices, filter cartridge production, raw material storage, warehousing and shipping. However, the metal fabrication building was destroyed. On Tuesday March 31, filter cartridge production will resume at full capacity, with filters in stock and ready to ship. We will continue to manufacture and ship new filter orders on time as usual.

In order to quickly restore metal fabrication operations, Camfil APC has activated its disaster continuity plan with 100 percent support of Camfil AB Stockholm. With the resources of a multinational company with 30 manufacturing plants, we have already begun the build-out of a temporary fabrication facility at a nearby location. That facility will be outfitted with state-of-the art equipment that will restore Camfil APC to full capacity.

We have the ability to gain additional metal fabricating support from Camfil facilities in the USA, Europe and Asia, and will air-ship parts from these facilities as needed to maintain customer delivery schedules. We're happy to report that all of these efforts will result in minimal disruption to our ongoing customer support.

At the same time, Camfil APC will begin planning to replace the damaged facility in Jonesboro, where we have enjoyed a long-standing, prosperous relationship with the community. The Camfil AB board of directors remains committed to Camfil APC and to keeping the company's manufacturing in Jonesboro, AR.

Of course, as all of these plans are put in motion, we continue to follow CDC guidelines for preventing the spread of COVID-19.

Camfil remains financially strong and committed to the success of our customers, partners and employees. 

PRODUCT NEWS

Parker Hannifin Announces a New Patent Under the BHA® Product Portfolio

The Industrial Gas Filtration and Generation Division of Parker Hannifin Corporation, announced a patented connector to be used with pleated filter elements. The connector allows two, two-meter pleated filters to be joined together without the use of any tools, installation is trouble-free.

This product development provides customers more options to better manage their baghouse filtration systems. Today the media width constrains the length of a filter, the longest pleated filter will be about two meters. Now using this connector Parker can convert a customer using 8, 9 and 10 meter-long bags and cages to a pleated filter and they will realize all of the benefits pleated filters offer:

·         Reduced air-to-cloth ratios

·         Lower operating differential pressure

·         Energy savings

·         Higher production output

·         Easy installation and removal of filters

“Providing our customers with products that improve their baghouse maintenance and performance is rewarding,” said Jeff Canfield, Senior Product Engineer, Industrial Gas Filtration and Generation Division. “We worked with one of our power generation customers on this project and they were delighted with the energy savings and longer filter life using pleated products and the filter connector.”

The patented connector was developed in Parker’s Industrial Filter Test Lab and Customer Experience Center that opened in 2018 in Slater, MO.

New Metal Fiber Filter from Provair

Sinterflo FMC is a new metal-fiber mesh composite for filter elements. The FMC structure features integrated Bekaert Bekipor technology and is composed of random fiber webs and woven mesh structures that are sintered to form a homogenous, yet multiple-layered structure designed to deliver strength and practicality in cleaning. Alongside this range of metallic Sinterflo filter elements, the company is able to provide a full range of polymeric disposable and last-chance filters, as well as a wide range of complementary filter housings.

 Back to Fabric Filter Newsletter No. 534 Table of Contents