FABRIC
FILTER
NEWSLETTER
February, 2021
No. 544
Markets for Air Filters, Controls and Masks Changing Rapidly
New
ASTM mask standards published this week will very likely result in the demise of
a $15 billion U.S. market for cloth
masks and help create an even larger market for masks with efficient filter
media.
The
pandemic is changing the entire market for air filters, monitoring /controls as
well as masks. To date the impact
has been a nationalistic trend but long term the result will be the opposite.
For
example the U.S. will be best served by ramping up efficient masks capacity now
and then subsidizing exports in
future years when the domestic needs subside.
The
Chinese economy is booming due to success in minimizing the pandemic impact.
Some of the other countries of the world will not achieve herd immunity for
years and will be subjected to more deadly variants of the virus. Therefore the
markets for filters, monitoring/controls, and masks will continue to be
significantly impacted.
The near term opportunity for efficient masks will greatly exceed any other
filter market. Suppliers need to carefully assess all the impacts and to be
proactive.
Many of the suppliers are international. They have a unique opportunity to help
shape the world markets. The McIlvaine Company with its extensive international
research and analysis provides strategic support for suppliers in this fast
moving market.
For more information on the strategic support services contact Bob McIlvaine at
847 226 2391 or rmcilvaine@mcilvainecompany.com.
38 GW of New Coal-fired Power Plants Started up in China Last Year
China
put 38.4 gigawatts (GW) of new coal-fired power capacity into operation in 2020,
according to new international research, more than three times the amount built
elsewhere around the world and potentially undermining its short-term climate
goals.
The
country won praise last year after President Xi Jinping pledged to make the
country "carbon neutral" by 2060. But regulators have since come under fire for
failing to properly control the coal power sector, a major source of
climate-warming greenhouse gas.
Including decommissions, China's coal-fired fleet capacity rose by a net 29.8 GW
in 2020, even as the rest of the world made cuts of 17.2 GW, according to
research released by Global Energy Monitor (GEM), a U.S. think tank, and the
Helsinki-based Centre for Research on Energy and Clean Air (CREA).
"The
runaway expansion of coal-fired power is driven by electricity companies' and
local governments' interest in maximizing investment spending, more than a real
need for new capacity," said Lauri Myllyvirta, CREA lead analyst.
The
country's National Energy Administration (NEA) didn't immediately respond to
Reuters' request for comment.
China
approved the construction of a further 36.9 GW of coal-fired capacity last year,
three times more than a year earlier, bringing the total under construction to
88.1 GW. It now has 247 GW of coal power under development, enough to supply the
whole of Germany.
A
team of central government environmental inspectors delivered a scathing
assessment of China's energy regulator, accusing officials of planning failures
and focusing too much on guaranteeing energy supply.
The
NEA had allowed plants to be built in already polluted regions, while projects
in less sensitive "coal-power bases" had not gone ahead, they said.
China
has been criticized for pursuing an energy-intensive post-COVID recovery based
on heavy industry and construction, and experts say new coal-fired power plants
could end up becoming heavily-indebted "stranded assets."
Coal-fired Power Took a Beating During the Pandemic,
Study Finds
The
share of energy generated from coal has dropped more sharply during the
coronavirus pandemic than that of any other power source, according to a new
report that looked at coal demand in some of the world's largest emitters of
greenhouse gases.
The
shift away from coal power had a significant impact on global emissions of
planet-warming carbon dioxide, the researchers said, and could lead to an
acceleration of the global shift toward renewable energy.
The
report, led by the Potsdam Institute for Climate Impact Research in Germany and
published in the journal Nature Climate Change, analyzed emissions and
electricity demand in the United States, Europe, and India.
Ottmar Edenhofer, director and chief economist at the Potsdam Institute and an
author of the study, said the findings were surprising because natural gas has
traditionally had the highest operating costs of all power sources, so gas-fired
power plants are usually the first to be taken offline when demand for power
falls. The sharp decline in gas prices during the pandemic, however, appears to
have changed that calculation, making coal power more expensive than gas power.
Coal
releases more carbon dioxide than any other form of power generation, so even
the relatively small decreases in demand that caused coal plants to go offline
resulted in substantial decreases in greenhouse gas emissions. Burning coal for
power also pollutes the air, releasing toxins that have been linked to heart and
lung problems and some neurological disorders.
In
some regions studied, a 20% decrease in power demand from 2019 monthly averages
corresponded with decreases in carbon dioxide emissions of up to 50%. Emissions
declines in terms of coal demand were most pronounced in Germany, Spain, and
Britain.
The
trend away from coal could outlast the pandemic, the report said. That's because
power plants that use renewable energy, like wind or solar, are expensive to
build. Once complete, though, it is not necessary to purchase fuels to run them.
According to a separate study by Ember Climate, an energy research
organization based in London, global wind, and solar power capacity increased
last year despite the pandemic. That, combined with the relatively low operating
costs, means that when power demand rebounds, a greater share of the total
energy will quite likely come from low-emissions or renewable sources.
The
authors of the Potsdam report noted, however, that so-called brown recovery
plans that expand coal power are still a possibility. That is particularly a
concern in parts of Southeast Asia, where energy demand is increasing quickly
but high interest rates can lead to steep costs for renewable energy projects.
"We
are not saying we predict that coal will be phased out," Edenhofer said. "What
we are saying is, this is now a splendid opportunity, and it would be good if
energy ministers and finance ministers around the globe will take advantage of
the situation."
Katrin Ganswindt, who works on energy and finance campaigns for the German
environmental nonprofit Urgewald, noted that market forces could push some
countries to a brown energy recovery. She noted that in China, the appetite for
new coal power plants is waning, leading Chinese coal corporations to pursue new
coal projects in neighboring countries.
"The
consideration is always, in the end, a financial one," Ganswindt said. "It's
less risky to do what you know instead of changing that, because the risk of
climate change still looks so unrealistic or so far away."
GAS TURBINES
Gas
Turbines on Offshore Platform Benefit From the More Efficient EPA 12 Inlet
Filters
When
it comes to protecting gas turbines from offshore air, and all that is contained
within, air filtration systems play a critical role, operating on the front line
of defense. Currently, around 85% of offshore gas turbines are protected by
small high velocity filtration systems that use low efficiency filter bags.
These only provide protection against coarse particles and fail to capture
sub-micron particles offshore. It is worth noting that the air quality at
platform level is significantly different to sea level. At the height of an
offshore platform, the majority of particles in the air are sub-micron in size.
The vast majority of particles of this size will pass through high velocity
filter bags, in fact, only 5% will be captured. This can lead to lost production
revenue, unplanned gas turbine shutdowns, reduced component and engine life,
premature engine failure, and low turbine compression efficiency and high CO2 emissions,
especially unwanted given today’s current market dynamics and the low price of
oil. By contrast, high efficiency particulate air filter (EPA) 12 technology
captures 99.95% of sub-micron particles. This protects and enhances the
performance of expensive gas turbine components.
According to Graeme Turnbull, AAF International, writing in Offshore
magazine, as operators have become aware of the benefits of EPA E12 air intake
filtration, there has been a push to upgrade existing high velocity units
installed offshore. However, traditional EPA E12 filtration technologies—with
much larger equipment envelopes—have necessitated that the air intake housing is
replaced in its entirety. This increases foundation loads and incurs significant
costs and down time. However, there is another route, using a new EPA E12
system, which provides all the associated benefits of EPA E12 air filtration,
but can be quickly and seamlessly installed within the existing high velocity
air intake filtration system.
BP’s
Clair platform operates three Titan 130 gas turbines (GTs 1, 2 and 3) employed
in power generation application to provide power to the asset. Each gas turbine
was experiencing compressor blade fouling, corrosion, and erosion, as well as
turbine section hot gas path corrosion. Operationally, this resulted in poor
engine reliability, reduced availability, and premature engine overhaul and/or
replacement; all of which severely impeded the long-term strategic planning for
the platform for both production and maintenance.
Eventually, the poor filtration provided by the high velocity bag system
resulted in a catastrophic failure of GT2 after 12,000 operating hours, which
equated to only one-third of the engine design life. The root cause of the
failure being inlet guide vane seizure and in turn compressor section imbalance
and ultimately blade liberation. This resulted in irreparable damage and a new
replacement engine was required, incurring unplanned long-term shutdown and
significant unbudgeted costs.
BP
was aware that AAF International was in the final stages of developing a new EPA
E12 high velocity filtration solution. Critically this new design could be
installed within an existing high velocity housing with no penalty in
differential pressure (dP), therefore negating the need for a larger housing
replacement. Because of this failure on GT2, BP was expediting the GT original
equipment manufacturer (OEM) for fast track delivery of a replacement engine and
approached AAF to determine if this new technology (N-hance) could be urgently
deployed in a field trial as a technology collaboration initiative.
Thanks to a longstanding relationship
between the two companies, BP was able and confident to pilot AAF’s N-hance
technology. The N-hance filters and conversion parts were delivered to the
operator within five weeks and commissioned along with the new GT2 engine on the
Clair platform in February 2017.
The pilot delivered excellent results. There was an increase in engine
availability resulting from a reduction in unplanned downtime and shortened
shutdown periods. There was also a decrease in CO2 emissions improving
sustainability, as well as retained power output (compressor efficiency) and
heat rate. Critically, BP has also eliminated the risk of potential GT failure
due to corrosion at just one-third of design life.
Commenting on the project, BP’s asset team said: “The upgrade project has
enabled improved reliability, cost savings and will feed into the reformation of
outdated air filtration standards as well as playing a part in helping to
achieve offshore asset efficiency of 90%.”
EPA E12 air filtration is currently available within low velocity systems and
already in use on assets owned by super majors. However, few operators are aware
that EPA E12 filtration is now supported within high velocity systems. This is
partially due to the fact there needs to be significantly more support for the
widespread adoption of the technology used on the Clair platform. This includes
the adoption of EPA E12:EN1822 standards within OEM offshore turbine
specifications to extend the life of all new gas turbines operating in the
offshore environment and provide the operator with the added benefit of a small
and lightweight filter housing in comparison to the traditional low velocity
large E12 filter housings. Operators also have their part to play and need to
question why they are repeatedly offered low efficiency filter bags for high
velocity systems. The accepted norms of poor air filtration in offshore
environments can be redefined, and operators can benefit from the improved
technology. Immediately, the result will be to eliminate frequent water washing
of the gas turbine, increasing production efficiency while at the same time
providing a longer operational life of the gas turbine. Furthermore, a sustained
effort is needed to communicate the evolution in filtration performance and
demonstrate the findings, which support the use of new proven EPA E12
technologies.
IRON AND STEEL
EAF Quantum Electric Arc Furnace and Ladle Furnace Supplied by Primetals
Technologies Goes Productive at Wuzhou Yongda
In
November 2020, an EAF Quantum electric arc furnace and a ladle furnace supplied
by Primetals Technologies went productive at a greenfield project of Wuzhou
Yongda Special Steel Co., Ltd. (Wuzhou Yongda) in Wuzhou city, in Guangxi Zhuang
Autonomous Region. This marks the first EAF Quantum in continuous operation in
China, with another eight to come.
The EAF Quantum furnace is designed to handle scrap steel of very varied
composition and quality. The electrical energy requirement of the electric arc
furnace is extremely low because the scrap is preheated. This reduces both the
operating costs and the CO2 emissions. The twin ladle furnace sets the desired
steel grades and the correct casting temperature.
Wuzhou Yongda is a privately owned steelmaker operating in the Guangxi Zhuang
Autonomous Region in Southern China. The company produces steel rods, coiled
rebar and coiled wire.
The EAF Quantum and the twin ladle furnace are part of a greenfield project for
the production of stainless steels. For the EAF Quantum electric arc furnace and
the twin ladle furnace, Primetals Technologies supplied the complete mechanical
and electrical process equipment and the automation technology. This included
the automated scrap yard management, the automated charging process, automation
of the oxygen injection and sand refilling, as well as the Level 2 automation
which makes the plant ready for Industry 4.0. A basic data package for dedusting
equipment was also part of the project. steel. An integrated dedusting system
with modern automatic off gas control fulfills all environmental requirements.
COMPANY NEWS
Babcock & Wilcox Enterprises Releases Preliminary
Fourth Quarter and Full Year 2020 Results
- Revenues of $149.9 million
- Net income of $2.4 million
- Earnings per share of $0.04
- Consolidated adjusted EBITDA of $16.1 million
- Bookings of $167 million
Preliminary Full Year 2020 Highlights:
- Revenues of $566.3 million
- Net income of $(12.5) million
- Earnings per share of $(0.26)
- Consolidated adjusted EBITDA of $45.1 million
- Bookings of $645 million
- Minimum required pension funding contributions reduced by $107 million or 75%
Babcock & Wilcox Enterprises, Inc. announced certain
preliminary results for the fourth quarter and full year 2020.
"Our preliminary results for the fourth quarter and full year
2020 reflect the ongoing positive impact of our strategic plan, despite the
adverse effects of COVID-19 across our segments," said Kenneth Young, B&W's
Chairman and Chief Executive Officer. "We ended the year well-positioned to
achieve our 2021 and 2022 adjusted EBITDA targets of $70-$80 million and
$95-$105 million, respectively, with roughly $645 million in bookings in 2020
and about $535 million in backlog at December 31, 2020, a 21.3% increase
compared to the end of 2019."
"Our strategic actions in 2020, including launching new
segments, expanding internationally and implementing additional cost savings
initiatives, provide a strong foundation as we pursue a more than $5 billion
pipeline of identified project opportunities over the next three years," Young
continued. "Looking forward, our leading-edge renewable and environmental
technologies are well-positioned to leverage the increasing global climate
demand for carbon and methane reductions. We also see our aftermarket parts and
services business growing worldwide through our global expansion and the ever
increasing demand for upgrades, enhancements and improved efficiency."
For the fourth quarter of 2020 GAAP income from continuing
operations is expected to be $2.8 million and net income is expected to be $2.4
million. Adjusted EBITDA is expected to be $16.1 million. Bookings in the fourth
quarter of 2020 are expected to be $167 million.
For the full year of 2020 GAAP income from continuing
operations is expected to be a loss of $14.3 million and net income is expected
to be a loss of $12.5 million. Adjusted EBITDA is expected to be $45.1 million.
Total bookings in 2020 are expected to be $645.0 million, and backlog at
December 31, 2020 is expected to be $535.0 million, a 21.3% increase compared to
December 31, 2019.
Full year 2020 preliminary results include the recognition in
the third quarter of a $26.0 million loss recovery settlement related to certain
historical EPC loss contracts, as previously disclosed.
The Company expects its total debt to be $347.6 million and
its unrestricted cash balance to be $57.3 million as of December 31, 2020.
In addition, based on the performance of the Company's
domestic qualified pension plan, the minimum required funding contributions
through 2026 have been reduced by 75%. The current total minimum required
funding contribution for the period 2021-2026 is $35 million, to be contributed
in the next 2 years. This is $107 million less compared to the Company's
previous expectation for the period from 2021-2026. These numbers are subject to
change with the performance of the pension fund investments.
In addition to the $119 million of cost savings initiatives
previously disclosed, the Company implemented an additional approximately $8
million of cost savings initiatives in 2020, for a total of $127 million. The
Company has also identified another $11 million of cost savings actions expected
to be implemented beginning in the first quarter of 2021.
B&W Thermal Announces $10 Million in Service Contracts
Babcock & Wilcox (B&W) announced today that its B&W Thermal segment has booked
new service projects valued at more than $10 million. These contracts, for
utility and industrial facilities, are in addition to more than $30 million in
construction services bookings recently announced by B&W.
“B&W Thermal’s service capabilities are a cornerstone of our growing business,”
said Jimmy Morgan, B&W Chief Operating Officer. “Customers turn to B&W Thermal
to ensure their energy and industrial plants continue to operate efficiently and
reliably, or when they need service or upgrade work to improve performance.”
“B&W Thermal is known for providing reliable service and exceptional engineering
expertise,” Morgan said. “The service agreements we’re announcing today
represent a broad spectrum of the markets we serve, including utilities, natural
gas, petrochemical facilities, iron and steel manufacturing and more.”
B&W Thermal responds to and solves customers' toughest boiler and environmental
equipment challenges. Its highly skilled field service engineers, service
specialists, and resident service engineers are strategically located in offices
worldwide to provide technical assistance whenever the need arises.
Wheelabrator Technologies Inc. Signs Definitive Agreement for Sale of
Wheelabrator Technologies U.K. to First Sentier Investors
Wheelabrator Technologies Inc. ("Wheelabrator Technologies") announced that it
has entered into an agreement to sell WTI / EFW Holdings ("Wheelabrator U.K.")
to the European Diversified Infrastructure Fund III SCSp ("EDIF III"), an
infrastructure fund managed by First Sentier Investors ("FSI"). The transaction
is expected to complete in early 2021.
Wheelabrator U.K. is the largest pure play waste-to-energy business in the U.K.
and is a developer, owner, and operator of strategically located waste-to-energy
facilities, with seven waste-to-energy facilities in operation and advanced
development. Wheelabrator U.K. is an integral part of the U.K.'s environmental
infrastructure, diverting waste from landfills or export to continental Europe
to provide residents and businesses with local, sustainable disposal of
non-recyclable solid waste while creating renewable energy.
Wheelabrator Technologies was acquired by Macquarie Infrastructure Partners IV
("MIP") in February 2019. MIP operates within the Macquarie Infrastructure and
Real Assets division of Macquarie Group, the world's largest infrastructure
manager.
In the past 12 months, Wheelabrator U.K. reached commercial operations at
Wheelabrator Kemsley, a combined heat and power facility that provides steam to
the DS Smith paper mill located in Sittingbourne, Kent and reached commercial
operations at two new waste-to-energy facilities in North Wales and West
Yorkshire, Wheelabrator Parc Adfer and Multifuel Energy Limited Ferrybridge 2.
The business continues to progress the advanced development of three further
waste-to-energy facilities, Multifuel Energy Limited Skelton Grange in
Yorkshire, Wheelabrator Kelvin in West Bromwich, and Wheelabrator Kemsley North
in Sittingbourne.
Robert Boucher, President & CEO of Wheelabrator Technologies, said, "I am
incredibly proud of the U.K. team and what we have achieved as One Team to grow
the Wheelabrator U.K. business over the last 11 years. I look forward to the
business continuing to execute on their strategy for continued development of
critical waste infrastructure in the U.K. with their new shareholder and
partner. The buildout of the largest, pure play waste-to-energy business in the
U.K. is the result of many years of commitment, hard work, and strong
partnerships with our customers and partners, and our ability to leverage our
operational excellence from the U.S. and embed it into the U.K."
PRODUCT NEWS
ULT AG has introduced air cleaning system LAS 800 with a high degree in modularity and extensive safety features
Presenting the LAS 800, ULT AG, global provider of ventilation systems, is
advancing into new dimensions in the field of air pollution control within
industrial laser processes.
The fume extractor LAS 800 was developed for the removal of large amounts of the
finest dusts and gases, occurring during laser processing of metals, plastics,
and other non-metallic materials. The device is currently one of quietest
systems in its class, which also scores with its compact, robust, and flexible
design.
The standard equipment is a cartridge filter system with a 30-l dust container.
The utilized four filter cartridges of filter class M are compliant with DIN EN
ISO 16890 and guarantee a long filter life, as well as simple assembly and
maintenance options.
The LAS 800 provides a multitude of options. They provide previously unimagined
opportunities to flexibly configure the extraction system for changing processes
and materials. On the one hand, there are several post-filter options, including
the addition of fine dust filters (H-14) or safety filters which can be
installed if necessary. There is also the option of utilizing sorption filters
(activated carbon and/or chemisorption) to bind any odors or gases.
On the other hand, extensive safety options are provided in the LAS 800, which
guarantee safe use with combustible dusts. These include, among many others, a
spark pre-separator, spark stop with automatic suction stop and shut-off damper,
safety shutdown when the H-14 filter is occupied, or a temperature sensor built
into the raw gas space.
Finally, there is the option of connecting a metering unit with a filter aid to
optimize the filtration of fine and sticky dusts.
Sensors for the fill level in the dust collector or for monitoring the
compressed air, as well as options for connection to modern and promising bus
communication platforms or the use of a recirculating air silencer round off the
various user advantages of the fume extraction system.
REGULATIONS
No Change to Particulate Ambient Air Standards
Based on the Environmental Protection Agency's (EPA's) review of the air quality
criteria and the national ambient air quality standards (NAAQS) for particulate
matter (PM), the Administrator has reached final decisions on the primary and
secondary PM NAAQS. With regard to the primary standards meant to protect
against fine particle exposures (i.e., annual and 24-hour PM2.5
standards), the primary standard meant to protect against coarse particle
exposures (i.e., 24-hour PM10 standard), and the secondary PM2.5
and PM10 standards, the EPA is retaining the current standards,
without revision.
This final action is effective December 18, 2020.
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Rules and
Regulations
US Court Overturns Trump’s Weakened Coal Plant
Emissions Standards
The US Court of Appeals for the District of Columbia Circuit
has set aside the Trump administration’s Affordable Clean Energy Rule, which
required only limited retrofits for existing coal-fired power plants as an
alternative to the more comprehensive Obama era Clean Power Plan. The court has
referred the policy back to the US Environmental Protection Agency (EPA) for
further consideration. The court ruling means President Biden’s Environmental
Protection Agency will have a clean slate in developing its own approach to
cutting air pollution, including greenhouse gas emissions, from fossil fuel
plants.
The Environmental Protection Agency (EPA) is providing notice of the
availability of data on emission allowance allocations to certain units under
the Cross-State Air Pollution Rule (CSAPR) trading programs. EPA has completed
final calculations for the second round of allocations of allowances from the
CSAPR new unit set-asides (NUSAs) for the 2020 control periods and has posted
spreadsheets containing the calculations on EPA’s website. EPA has also
completed calculations for allocations of the remaining 2020 NUSA allowances to
existing units.
Federal Register / Vol. 86, No. 27 / Thursday, February 11, 2021 / Notices
Indian NGO Warns Against Further Delay in Emissions
Standards
The Centre for Science and Environment (CSE), a Delhi-based
think tank, has argued against a proposal by the Ministry of Power to further
delay the introduction of new pollution standards applying to the country’s 448
coal units until 2024. CSE argues further delay would make “a complete mockery”
of efforts over the last five years by the Supreme Court and regulators to
control air pollution.
The standards for power plants were first announced in
December 2015 to come into effect in December 2017 but have been repeatedly
delayed in response to lobbying by private and public power utilities. CSE has
proposed that the government prioritize power purchases from units that have met
the standards and penalize those that have not installed pollution control
equipment.