In 2021, annual global energy investment is set to rise to USD 1.9 trillion, rebounding nearly 10% from 2020 and bringing the total volume of investment back towards pre-crisis levels. However, the composition has shifted towards power and end-use sectors – and away from traditional fuel production. These are conclusions in a new IEA report.

 Prospects for investment have improved markedly along with economic growth, although there are significant country-by-country variations. Global energy demand is set to increase by 4.6% in 2021, more than offsetting the 4% contraction in 2020, according to the latest IEA estimates. While many energy companies remain in a fragile financial state, there are signs developers are using the window provided by accommodative monetary policy and government backing to plan infrastructure developments and investments in new projects.

 The anticipated upswing in investments in 2021 is a mixture of a cyclical response to recovery and a structural shift in capital flows towards cleaner technologies. But despite an urgent need to shift to a more sustainable energy pathway, global carbon dioxide (CO₂) emissions are again on the rise, following the largest-ever annual decline in 2020.

 After staying flat in 2020, global power sector investment is set to increase by around 5% in 2021 to more than USD 820 billion. Renewables dominate investment in new power generation and are expected to account for 70% of 2021’s total of USD 530 billion spent on all new generation capacity. Investment in grids and storage makes up the remainder. Thanks to rapid technology improvements and costs reductions, a dollar spent on wind and solar photovoltaic (PV) deployment today results in four times more electricity than a dollar spent on the same technologies ten years ago.

 Renewable investment has thrived in markets with well-established supply chains where lower costs are accompanied by regulatory frameworks that provide cash flow visibility — and where lenders and financiers that understand these sectors as well are seeking sustainable projects to support. Demand from the corporate sector for clean electricity to meet sustainability targets has also played a role.

 Much of the spending resilience in 2020 was concentrated in a handful of markets, most notably the People’s Republic of China, which saw a remarkable year for wind power investment, as well as the United States and Europe. For the sixth consecutive year, capital spending in the power sector in 2020 was higher than for oil and gas supply.

 Electrification was also a major driver of investment spending by final consumers. Electric vehicle sales continue to surge along with a proliferation of new model offerings by automakers, supported by fuel economy targets and zero-emissions-vehicle mandates.

 In economies where governments have more fiscal space and are able to borrow at low rates, recovery strategies offer a major opportunity to boost investment in infrastructure, efficiency, and clean energy technologies. In the case of infrastructure, after declining for the fourth consecutive year in 2020, spending on electricity grids is expected to rise in 2021, led by China and Europe. Proposed infrastructure spending in the United States, if approved, would add to this momentum.

 Spending on energy efficiency improvements is set to increase in 2021 by nearly 10% in response to renewed economic growth and initial effects of recovery programs. However, against a backdrop of relatively low fuel prices, growth is heavily concentrated in markets and sectors with clear government policies, such as the buildings sector in Europe. Policies and stimulus spending are spurring projects in new areas such as low-carbon hydrogen and carbon capture utilization and storage (CCUS).

 Yet, despite these encouraging signs, stimulus spending on clean energy technologies is falling well short of what is needed to ensure a sustainable recovery from the Covid-19 crisis. Many developing countries lack the means to pursue expansive recovery strategies, and early signs of inflation in some economies has led to questions about how long the current environment of low interest rates will last.

 Over the last year, there has been a proliferation of commitments by governments, companies, and financial institutions to achieve net zero emissions by 2050 or soon thereafter. The financial community in many advanced economies has rallied around sustainable finance, launching funds and initiatives to channel the growing appetite from capital markets and to comply with new disclosure rules. Sustainable debt issuance has risen rapidly, reaching a record USD 600 billion in 2020, and the mainstreaming of green bonds is increasingly accompanied by new types of securities and performance-based instruments to support more complex transitions.

 Clean energy companies have performed well on financial markets, with renewable power companies outperforming both listed fossil fuel companies and public equity market indices in recent years, and with lower volatility. Valuations remain high after a particularly strong run-up in prices in the second half of 2020, even though there was some pullback in early 2021.

 Even if spending on clean energy is set to rise in 2021 by around 7%, financial flows have grown more rapidly than actual capital expenditures. There is a shortage of high-quality clean energy projects. This is compounded by inadequate channels to guide available funds in the right direction and a lack of intermediaries capable of matching surplus capital with the sustainability needs of companies and consumers.

 The USD 750 billion that is expected to be spent on clean energy technologies and efficiency worldwide in 2021 remains far below what is required in climate-driven scenarios. Clean energy investment would need to double in the 2020s to maintain temperatures well below a 2°C rise and more than triple in order to keep the door open for a 1.5°C stabilization. Moving to a climate-aligned energy pathway hinges on a broad range of government actions, including attention to the financial architecture that can accelerate direct investments in market-ready solutions and promote innovation in early-stage technologies. As emphasized in the new IEA Roadmap to Net Zero by 2050, policies need to drive a historic surge in clean energy investment this decade.

 The rising share of renewables in new power generation investment has been accompanied by a sharp drop in approvals for new coal-fired power plants, which are some 80% below where they were five years ago. However, there was a slight increase in go-aheads for new coal-fired projects in 2020. This was largely due to China, where the government lowered restrictions on building new plants, giving a green light for construction in more provinces. Cambodia, Indonesia, and Pakistan were other countries where coal-fired final investment decisions (FIDs) picked up in 2020. Those three countries together approved almost 5 gigawatts (GW) of new coal capacity in total. In India, the amount approved dropped below 1 GW, its lowest level in a decade.

China’s coal-fired FIDs in 2020 were about 25% their 2010 level, India’s less than 5%. FIDs for gas-fired power plants edged down globally in 2020 but were still more than double those of coal (50 GW versus 20 GW). A large reduction in FIDs for new gas-fired capacity in the United States more than offset growth in parts of Asia (outside China and India.

 The extent to which market share correlates or causes profitability is debatable. To answer this question for the Flow and Treat industry, it is desirable to separately analyze the general performance and high performance segments.

The general performance segment depends on price and delivery. There are economies of scale. The large producer achieves lower production costs and potentially higher margins.

The high performance Flow and Treat purchases are $300 billion per year. For this segment there are a number of related factors forming a causation loop consisting of

•  Market share

• Total cost of ownership (TCO)

• Industrial Internet of Wisdom (IIoW)

• Lowest Total Cost of Ownership Validation (LTCOV)

• Profit margin and total profits

 TCO is dependent on the performance of the product. Higher prices and margins can be achieved if the customer can be persuaded that the product is the best choice (LTCOV).

 If a company has a high market share it can infer LTCO. It does not need proof but only to point to the many happy users. So market share is an important factor in LTCOV. Competitors have to prove that their product is better. This is not an easy task.

 It is necessary to gather all the available information and provide evidence or opinions of experts. Due to digitalization and the willingness of media  to provide permanent access to published articles there is now an IIoW. 

 This path provides the opportunity for LTCOV of better products. It is enhanced to the extent that the TCO can be more accurately assessed with online monitoring (IIoT).

 A new valve or pump may only be installed at a few sites. However if there is continuous monitoring of TCO there is considerable validation. Therefore IIoW including IIoT becomes a route for suppliers with low market share to overcome a disadvantage.

 IIoW allows companies to provide LTCOV in each niche area. The purchaser at a vaccine manufacturer is going to be swayed by case histories and analysis of the product use at other vaccine plants.

 This LTCOV in each niche eliminates the market share advantage of the large company with a major share of the broader market e.g. hygienic.  The multi product company can show that lots of food and pharmaceutical plants use his product. But if the smaller supplier shows LTCO in the niche, he has the advantage with the customer in that niche.

 Knowledge of the industry and all the niches becomes important. The large companies with many products serving a specific niche have the advantage of more cost effectively gathering the knowledge. If they do not leverage IIoW this is no longer an advantage.

 There is a new environment where market share is more quickly impacted by new and better products. There is a causation loop where leveraging each of the factors can lead to higher profits.

 McIlvaine Company tracks market share and profitability of many thousands of flow and treat companies. This is reflected in multi-client market reports and private consulting. There are global market shares in the reports.

 For individual clients, the level of detail can be as specific as trunnion not floating ball valves for mid-stream gas applications for 18-24 inch sizes in Algeria.

 Information on the multi-client reports is shown at  www.mcilvainecompany.com under markets at the top of the page.

 Relative to private consulting you can contact Bob McIlvaine at 847 226 2391 or rmcilvaine@mcilvainecompany.com.

 Digital communications and content marketing are providing cost of ownership factors which will allow purchasers to make better choices.

 Nearly $300 billion/yr of flow and treat purchases are based more on anticipated product performance than on price and delivery. This decision on Lowest Total Cost of Ownership (LTCO) is based on the following factors and examples.

·         Financial: interest rate, evaluation life

·         Common: energy, maintenance, product value

·         Shared product features: some competitors also have these features

·         Unique product features: only offered by one supplier

 Too many products are purchased because they are what is being used rather than what might be better. In order to gain market share suppliers need a Lowest Total Cost of Ownership Validation (LTCOV) which includes substantiation of all factors.

Shared product features need to be incorporated. Dry scrubbers reduce water usage compared to wet scrubbers. Diaphragm valves have hygienic advantages over other types.

It is possible to have the best performance even though there are no unique features. If the product incorporates more of the shared cost reducing features than any competitor, it can claim LTCO.

 Product based associations are well equipped to communicate shared product features. Other associations such as those built around the environment or safety can contribute common factor evidence. The media can help communicate this knowledge.

 The Mcilvaine company is working with suppliers to help them quantify the unique product benefits in each niche. With many industries, many processes, and many geographies it is critical in each niche to

·         Determine the present and future size of each niche

·         Determine present competitor market shares

·         Determine future competitor LTCO

·         Rank opportunities relative to profits which can generated

·         market shares based on Use of niche LTCO Analyses to Determine Strategy

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

 A number of multi-client flow and treat market reports are available and described at www.mcilvainecompany.com  Click on markets at the top.

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

According to a release from the EPA, Spectro Alloys agreed to make certain facility improvements including the construction of a new baghouse, which will control all emissions from the furnace including the hearth, upgrade the dryer baghouse, install new capture hoods and make additional improvements to the dryer closed vent system, increase emissions monitoring, and make improvements to the facility’s operations, maintenance, and monitoring plan.

The upgrades will cost at least $1 million to install, and Spectro was required to pay a $110,000 civil penalty to resolve the outstanding violations.

The EPA issued a notice of violation to Spectro in June 2020, alleging its Rosemount facility exceeded emission limits from an uncontrolled furnace hearth stack, failed to maintain a closed vent system at its scrap dryer and failed to properly monitor lime injection at the dryer baghouse.

“Spectro has taken some action to address that, or in some cases go above in beyond what the requirements were, to comply with that order,” senior planner Kyle Klatt said.

Those improvements are under construction, he said. That includes a new baghouse facility to “minimize particulate matter from escaping the property and improvements to the scrap dryer equipment to help eliminate and prevent any material from leaving the site or getting airborne on the property.”

Babcock & Wilcox announced that its B&W Renewable segment has received a limited notice to proceed for a new-build waste-to-energy project in Europe as it finalizes terms for a $24 million contract with its customer. B&W Renewable anticipates a full notice to proceed later this year.

Under the limited notice to proceed, B&W Renewable has begun engineering on its best-in-class renewable energy technology – including a boiler, combustion equipment and DynaGrate^® combustion grate – to process municipal waste to produce electricity while controlling environmental emissions and eliminating harmful landfill methane emissions.

Meanwhile, the EPA said in a news release it is continuing cleanup work, despite the recent bankruptcy of the property’s corporate owner.

In May 2020, Exide Technologies LLC filed Chapter 11 bankruptcy. As a result of the bankruptcy settlement in October 2020, Exide dissolved, and the court established an environmental response trust to address the environmental liabilities at the Laurel Dale site.

The trust was to designate $10 million for ongoing containment and safety efforts at 16 of Exide’s former sites in Pennsylvania and nine other states.

The Environmental Protection Agency, which agreed to the trust fund, said in an Oct. 14 filing that it would not be enough for full cleanup. Approximately $500,000 of the trust was allocated to the Laureldale facility, according to the EPA. An additional $2 million was set aside for the facility from the forfeiture of a bond to DEP for the closures of the former hazardous waste sites at the facility.

The estimate to clean up and monitor the site is in excess of $15 million, the EPA said recently on its website. That is more than double previous estimate.

Contamination at the facility consists of elevated levels of lead and specific heavy metals in soils, sediment and groundwater.

EPA and the Pennsylvania Department of Environmental Protection are working with the trustee to allocate the limited amount of money in the trust to maintain the facility and to ensure that human health and the environment are protected, the EPA said in June 14 news release.

Work began in late June to remove five baghouses and associated ductwork containing high concentrations of hazardous substances, the EPA said.

"We have completed the gross decontamination of the first two baghouses, the Reese and UOP Baghouses, and are currently working on the third baghouse, the AAF Dust Collector, also known as the American Air Baghouse," said EPA spokesman David Sternberg in an email on Tuesday. "Upon completion of gross decontamination of the American Air Baghouse, all three structures will be pressure washed, and decontamination and dismantling (as necessary) of the associated ducting, will be conducted. Air monitoring is being conducted continually during all active periods of work."

The EPA is also conducting a site evaluation to determine if hazardous substances pose threats that warrant prompt  actions to protect human health and the environment.

The removal work began with mobilizing personnel and equipment, working on health and safety and field sampling/air monitoring plans, and considering options for decontamination and demolition operations, the EPA said.

Because of the bankruptcy, EPA said it has not yet selected a final remedy for the facility. Last summer, thee Berks County commissioners had asked the EPA to hold a public hearing on the proposed cleanup and monitoring of the site and asked for a new risk assessment in light of recent science and lack of monitoring of children's blood-lead levels in the area.

The existing plan to remediate lead levels at the Exide  facility was so long ago and so much has changed involving environmental rules that the commissioners said it should be redone.

The county expressed grave concerns that the EPA was proceeding to implement and finalize a cleanup in 2020 that was designed and based on 1990 science.

Since then, the hearing was put on hold as Exide's third bankruptcy proceeded.

Exide's battery facility and its environmental impact on the soil and water in the surrounding area have been under scrutiny by the EPA for many years.

In 2010, Exide discontinued the battery manufacturing operations and ceased all lead recycling operations in 2013. An adjacent facility conducted a plastics recycling operation with a small number of employees until September 2020. 

Last fall, the facility and several other lead-polluted properties in Berks owned by the bankrupt battery manufacturer were transferred to the environmental trust. 

January – December 2020

• Incoming orders amounted to SEK 3,480m (4,168), equivalent to a currency-neutral decrease of 13.7 percent compared with the same period last year.

• Net sales amounted to SEK 3,675m (4,308), equivalent to a currency-neutral decrease of 11.8 percent compared with the same period last year.

• Operating profit was SEK 219.0m (343.2), giving an operating margin of 6.0 percent (8.0).

• Adjusted operating profit was SEK 295.6m (349.1), giving an adjusted operating margin of 8.0 percent (8.1).

• Net profit was SEK 110.4m (225.8).

• Earnings per share were SEK 3.15 (6.43).

• The Board’s current proposal is that no dividend be paid but a further statement regarding dividends will be made at the latest in the Q3 2021 report on 22 October 2021.

Sven Kristensson, CEO  had the following comments
 
“2020 was a challenging year in several different ways. The most obvious of these was, of course, the enormous effect that the COVID-19 pandemic has had on communities throughout the world, with repeated lockdowns. Protracted Brexit negotiations and the turbulent political situation in the US also had an adverse impact on the business climate. The huge uncertainty that prevailed for most of the past year led to caution among Nederman’s customers regarding major investments. Compared with 2019, our sales declined 15 percent, while the operating margin remained at a good level. Adjusted operating profit was SEK 296m (349), corresponding to an adjusted operating margin of 8.0 percent (8.1). Orders received for the year amounted to SEK 3,480m (4,168).

I am very proud that we were able to maintain a good operating margin during the year despite the large decline in volume. Nederman’s organization demonstrated an excellent ability to rapidly adjust and adapt its business to a new and unpredictable reality, where at times, it has been impossible to gain physical access to our customers’ plants, even to undertake service work.

After a strong start during the first months of 2020, demand declined dramatically. Nederman reacted rapidly to the new situation that emerged in the wake of the COVID-19 pandemic. In the spring, we implemented significant cost cutting, which entailed that, after successive improvements, we achieved an adjusted operating margin of 10.0 percent (10.4) for the final quarter of the year and 8.0 percent (8.1) for the full year. In the long term, we have higher ambitions for our profitability, but the outcome for 2020 must be viewed in light of a significant decline in sales compared with our original ambitions for the year and negative currency effects. During 2020, we also worked consistently to strengthen our cash flow, which led to continued improvements, a fact that became particularly apparent in the fourth quarter of the year. As we enter 2021, all improvement activities have been completed, meaning that the cost effectiveness in the Group is higher than ever before.
The restrictions and lockdowns that were in force for long periods in 2020 impacted the different areas of our operations to varying degrees. The division most affected by the COVID-19 restrictions was Nederman Process Technology. Its operations are characterized by large systems, which represent the type of investments that were postponed to a significant extent. Despite this, the division remained profitable in 2020 and we are now seeing certain signs of improvement in some specific market segments.

Nederman Extraction & Filtration Technology has a base of product sales and is not as dependent on sales of systems as Nederman Process Technology. The fourth quarter of the year was somewhat stronger than anticipated, despite negative currency effects.

Nederman Duct & Filter Technology also had a positive end to the year. During 2020, the division strengthened its operations through efficiency enhancements in production, leading to stronger margins and cash flow. Disruptions to raw materials supplies were very limited in 2020. However, the steel price has now begun to rise since the beginning of the year.

In 2020, Nederman Monitoring & Control continued its intensive development work and its integration with other divisions became increasingly stronger, demonstrated, for example, by the sale of 50 Insight systems during the year. Some projects in Asia and the US were delayed due to lockdowns, but the general trend in 2020 was positive, with steadily growing interest in the division’s digital solutions.

Nederman is taking a cautious approach into 2021. In principle, we anticipate that the entire first six months will be dominated by continued lockdowns and restrictions. If the vaccination programs that are now being initiated throughout the world have the expected effect on the global spread of infection, we anticipate a cautious recovery in the second half of 2021. However, our assessment is that it will take time before we return to pre-pandemic levels. Nederman will monitor developments carefully and will be very thorough in our assessments, so that we can accelerate our operations at the right time.

The successful work that we conducted during 2020 to protect our profitability meant that, despite everything, we are in a strong position, with good opportunities to further advance our positions, not least by launching new products and continuing the development of our digital offering. The problems with poor air quality in the world remain extensive, leading to a large number of people dying prematurely every year. The underlying need for Nederman’s products is therefore very large and we will continue our work to develop new and improved solutions, and work to increase knowledge of this situation, which, over time, is much deadlier than the COVID-19 pandemic.”
 
Camfil Consolidates Acquired Businesses in Australia

Following Camfil's acquisition of Airepure Australia in March 2020, the clean air solutions manufacturer has announced the consolidation of its Australian businesses.

Effective 1 May 2021, Airepure Australia Pty Ltd and FilterTech Australia will cease trading, and operate as Camfil Australia Pty Ltd.
Since entering the Australian market in 1999, Camfil has grown its local presence, with operations now located in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra, and The Gold Coast.

Camfil Australia offers an extensive range of products and technical services supporting a wide range of industry applications. These industries include HVAC, healthcare, pharmaceutical, life science, food and beverage, mining, gas turbines, and many more.

Howden to Acquire Fancraft (Pty) Ltd to Expand Services for the South African Market

Howden Group, a leading global provider of mission critical air and gas handling products, technologies, and services, has reached an agreement to acquire Fancraft (Pty) Ltd.
 
Established in 1989 by Andries Gouws and based in Sasolburg, South Africa, Fancraft is an independent aftermarket services company focused on the maintenance, repair and installation of air & gas handling equipment and turbomachinery.
 
The combination of Fancraft with Howden’s South African business allows Howden to expand its aftermarket service capabilities, while providing Fancraft customers with access to Howden’s network of technologies and global experts. The acquisition will also accelerate the growth of Howden’s compressors and turbines aftermarket services business and broaden its footprint in Southern Africa. The strong fit between the companies is underscored by the fact that Fancraft has operated as a qualified service agent for Thomassen compressors and Peter Brotherhood steam turbines, which are both product brands owned by Howden.
 
Ross Shuster, CEO of Howden, comments: “We are pleased to welcome the Fancraft team to Howden. This acquisition is well aligned with Howden’s strategy to aggressively expand the aftermarket services we provide to our customers globally. Fancraft already has strong experience with a variety of Howden technologies, including Thomassen compressors, and also steam turbines from Peter Brotherhood, a company, which Howden recently acquired, demonstrating the natural fit of Fancraft within the Howden family.”
 
Andries Gouws, founder of Fancraft said: “This deal represents great news for our customers, giving them direct access to the skills and technology of Howden, and the wider global access to services and spares that comes through this network. Fancraft has an established track record of working with Howden, and we are excited by the opportunities this combination brings to our team and our customers across the Southern Africa region.”

Howden is focused on helping customers increase the efficiency and effectiveness of their air and gas handling processes enabling them to make sustainable improvements in their environmental impact. Howden Africa designs, manufactures, and supplies products, solutions, and services for a diverse range of industries including mining and a variety of industrial services in the region.
The Fancraft acquisition agreement follows three other acquisitions made by Howden in 2021: Balcke-Dürr Rothemühle GmbH in Germany; Peter Brotherhood in the U.K.; and Maintenance Partners NV in Belgium.

 
IAC Has IoT Systems to Improve Data Collection and Process Efficiency 

IAC has fully embraced Industry 4.0 with  Smart Plant™ Product and Services Line, which includes the Smart Plant™ Gateway, Smart Plant™ Timer with Integrated Gateway, Smart Plant™ Silo Management System (SMS), and the newest Smart Plant™ product, debuting later this summer, the Smart Plant Wx line of Battery Operated Wireless Sensors, which will connect to any existing brand of sensor — no wire required.

Each of these turnkey, cloud-based industrial IoT systems helps automate and improve data collection to improve process efficiency. The data collected and stored by the Smart Plant™ Product Line vertically and horizontally integrates the process to benefit the full cycle of the product value chain.

Smart Plant™ Products optimize the data collection from the various steps in the production process and allow access to them easily from one screen. This automation helps further the advancement of organizations by allowing for data to be analyzed to identify any patterns or irregularities within it. Products also allow for easy comparison of different facilities in one convenient online dashboard.

This information helps facilities create preventative and predictive maintenance, which ensures personnel can stay ahead of maintenance issues. IAC can carry out a Virtual Health Check on your equipment quarterly or yearly to help perfect your Virtual Maintenance Manager.
For Industry 4.0, the ease of collection and use of data is highly critical. The more a company can decipher about their operations, process, delivery, etc., the more value is driven down the supply chain. IAC’s Smart Plant™ Product and Services Line is the first step to improving a facility’s performance and communication with the ability to transmit data as soon as it is installed, minimize labor hours and manual record keeping, review historical trends and alarms, and send real time e-mail and text alerts.

New Kice GR Filter

Kice Industries announced it has introduced a new baghouse filter to its product line, the Kice GR Filter.
“We are excited for this new and improved design which will result in lower energy consumption and extended filter bag life,” said Drew Kice, President and CEO, Kice Industries.

“It will provide a more reliable cleaning mechanism for filtering. The cleaning mechanism will solve some long-standing challenges in this market.”
 
The new filter contains a patented method for controlling and activating the reverse air cleaning system. It has a standard temp rating of 150 degrees F with a max temp option up to 300 degrees F.  The filter also has low energy requirements with a 7.5hp reverse air cleaning blower.
 
“We’ve been testing for two to three years and think our customers will appreciate the user-friendliness of the design,” said Kice.