FABRIC
FILTER       NEWSLETTER 

  

November 2021, No.553

MARKETS

 

COAL FIRED BOILERS


IRON AND STEEL

INDUSTRIAL APPLICATIONS

 

PULP AND PAPER

BIOMASS

 

COMPANY NEWS

 

MARKETS

 

Detailed Forecasting of the Air, Water, Energy Opportunities in Pharma

The market for air, water, and energy products in the pharmaceutical industry exceeds $35 billion and will be growing in excess of 6% per year over the next decade.
Certain segments are growing at rates as high as 20% per year while others are shrinking. An example is cleanrooms where modular cleanroom revenues are growing robustly whereas stick built rooms are losing market share.

Some of the products are process equipment and influence the market for associated products. Every centrifuge needs feed and discharge pumps. Every pump needs multiple valves.
The Most Profitable Market initiative is based on separate forecasts for each application with unique cost of ownership factors. There are hundreds of unique niches. Each needs to be evaluated.

Prior to a deep dive into a detailed niche it is necessary to determine the broader market. Millions of forecasts are available in each AWE sector.

 

The market of $35 billion can be segmented many ways. One is by function.

There is typically a need to purify significant quantities of intake water used for process and cooling. Process is the biggest segment. The waste segment includes treating wastewater. More elaborate treatment of solid waste is also being practiced. Utilities such as compressed air require valves and compressors.

Most large pharmaceutical plants generate electric power along with steam.
The total cost of ownership factors are impacted by the type of service. The four categories are general, critical, severe, and unique. If the operation of the plant depends on the product performance it is critical. If there are abrasive solids it is severe service. If it has to be specially designed it is unique.

Another aspect shaping the market is the form of the end product. It can be a solid tablet or a liquid. Within each product type there are specific drug types using this distribution mode.

Segmentation of the market by Therapy is also useful. Some therapies are growing more rapidly than others. The present AWE revenues also vary from therapy to therapy.

The market for air, water, energy products is directly proportional to the markets for the process equipment. Therefore the most accurate approach is to start with process equipment forecasts.

The market is also impacted by the type of pharmaceutical product, which is manufactured, The monoclonal antibody market is over $160 billion whereas the gene and cell therapies markets are approximately $30 billion but are growing rapidly.

The most profitable market program involves determining the forecasts and cost of ownership factors in each niche. This necessitates an analysis of the market by service, function, and pharmaceutical product being manufactured.

This data is available in McIlvaine market reports. Supplemental consulting provides the balance of the MPM program.

The individual market reports are described under markets at www.mcilvainecompany.com
The Most Profitable Market Program is also linked from this home page

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

AWC Markets Forecast for Thousands of Food and Beverage Niches

The food industry accounts for a significant percentage of World GDP. Purchases of Air, Water, and Combustion (AWC) products for food are in excess of $60 billion per year.


For each product it is necessary to understand the application and the general total cost of ownership factors. For each corporation it is necessary to understand the total cost of ownership factors at each plant, The AWC provider needs to compare TCO factors for his product to that of competitors. He then needs to validate his lowest total cost of ownership (LTCOV).

This whole process starts with identifying the processes and markets in each food and beverage sector.

 The following questions need to be answered.

• How big is the market?
• What is its growth rate?
• What are the processes and to what extent do they require AWC products for general, critical, severe, and unique service?
• What % is AWC of the total retail sales

The market has been divided into beverages and food and then to specific products in each.

Beer is the largest beverage market. AWC represents a relatively large percentage compared to industry revenues. There are critical and severe service applications.

The poultry, meat, seafood industry is the largest food market. It is a big market for AWC products but in relationship to total industry sales it is small.

The air segment for food is much bigger than for beverages. Industries such as flour involve major investments in dust collection and pneumatic conveying. Screening and drying are frequently employed.

 

Information on each one of these food segments has been analyzed and for each process the TCO factors for each AWC product have been compiled.

This additional insight is applied to forecasts already generated by country and industry. For example the Thailand forecast already has food forecasts for 10 valve types. The custom analysis will show that in the sugar segment, Thailand is a major AWC purchaser even though it is a small purchaser in other food segments.

Thailand has eight major sugar producers and 49 sugar factories. Its electricity prices are in the middle at $0.11/kwh.

Other generic TCO factors are easily compiled before the harder work of analyzing the performance of the better product compared to competitors.


Information on specific market reports such as ones on pumps, valves, instrumentation, centrifuges, cartridges, cross flow membranes, filter presses, treatment chemicals, dust collectors and scrubbers is shown at www.mcilvainecompany.com  under markets.


Information on the Most Profitable Market Program is also linked from the home page.

Bob McIlvaine can answer your questions at 847 226 2391.

 

COAL FIRED BOILERS

Doosan Supplied Fabric Filters For Czech Power Plant

Doosan Lentjes supplied of fabric filters for a power plant in Chvaletice, Czech Republic. The main contractor is the local company ZK Termochem.

The power plant, with its 4 x 205 MWe boilers, is owned and operated by the Czech energy supplier Sev.en Energy.

Doosan Lentjes’ scope of work in the project included engineering, delivery of key filter internals and the fly ash transport system.

Commenting on the contract, Frank Oberheid, Product Director Air Quality Control Systems (AQCS) at Doosan Lentjes, said: “This current project is a milestone for us. It is not only an important filter reference on the Czech market; it again demonstrates that our technology is competitive and meets state-of-the-art requirements. Our technology thus makes a valuable contribution to reducing the environmental impact of local power plants and supports efforts to promote clean air.”

IRON AND STEEL

 

EVRAZ to Increase Investment in Clean Air Projects to RUB10.2 Billion

EVRAZ will invest an additional RUB4 billion into environmental projects to enable improvement of air quality in Nizhniy Tagil, - said Maxim Epifantsev, EVRAZ Environmental Compliance Director, at the Community forum of Russian Public Chamber.

One of the projects is construction of a new biochemical unit at EVRAZ NTMK’s coke plant (worth RUB2.15 billion and due in 2023); the other one is the implementation of a new pitch manufacturing technology to replace the outdated coke-pitch batteries (worth RUB1.9 billion and due in 2024).

Both projects will be included into the federal project Clean Air in terms of the national project «Environment». Thus, upon their completion, EVRAZ` total investment into the Clean Air project will total up to RUB10,2 billion. As of today, the company has completed six projects, investing RUB4.3 billion.

EVRAZ is continuously upgrading its production facilities. Maxim Epifantsev reminded that since 2000, EVRAZ NTMK and EVRAZ ZSMK have shut down 31 environmentally faulty projects, while all the new equipment meets the BAT (best available technology) standards. Over this period, total emissions of the two assets have been reduced by more than 100,000 tonnes. By 2024, EVRAZ assets in Nizhniy Tagil and Novokuznetsk will have reduced their total emissions by 25%, including the reduction of the 1-2 class of hazard discharge - by 68%.

INDUSTRIAL APPLICATIONS

 

Babcock & Wilcox Environmental Awarded Contract for Approximately $30 Million to Supply Emissions Control Technologies for U.S. Industrial Facility

 

Babcock & Wilcox (B&W) announced that its B&W Environmental segment has been awarded a contract for approximately $30 million to design and supply a full suite of environmental technologies for a U.S. industrial facility.

 

B&W Environmental will design and supply a spray dry absorber (SDA), dry and wet electrostatic precipitators (ESPs), dry sorbent injection (DSI) system, activated carbon injection (ACI) system, baghouse and caustic scrubbers to control the plant’s emissions, as well as a waste heat boiler, soot blowers and ash handling equipment.

 

“B&W Environmental’s advanced emissions control technologies can be custom-designed for any size industrial or manufacturing facility,” said Jimmy Morgan, B&W Chief Operating Officer. “Our customers have a responsibility to limit the environmental impact of their operations, and we’re pleased to work closely with them to tailor solutions to these challenges and protect our environment.”

 “We see substantial opportunities to continue to grow B&W Environmental’s business with industrial customers and are aggressively pursuing these opportunities in the U.S. and globally,” Morgan said

 

PULP AND PAPER

 

 Andritz Successfully Starts Up Steel Yankee and Air and Energy Systems at Kartogroup in Spain

The turnkey order included a steel Yankee with steam and condensate system for the PM2 tissue machine as well as two dust removal systems for PM2 and PM4. ANDRITZ Novimpianti provided the complete project management, commissioning, and start-up for all these key components.

Kartogroup España S.L., a member of the COMINTER GROUP, has more than 40 years’ experience in the tissue business. At its mills in Burriana and Hernani (both Spain), the company produces high-quality tissue grades for household and industrial applications.


Andritz Novimpianti, located in Lucca, Italy, has been part of the Andritz Group since 2018 and is one of the leading suppliers of drying and ventilation equipment for all kinds of paper machines. Over the past 35 years, Novimpianti has installed around 700 air and energy systems in more than 50 countries.

BIOMASS

Andritz to Supply 10th High-Efficiency Powerfluid Circulating Fluidized Bed Boiler to Japan


Andritz has received an order from Toyo Engineering Corporation, Japan, to deliver a PowerFluid circulating fluidized bed boiler with a flue gas cleaning system.

The boiler will be part of a new biomass power plant to be built in Niigata East Port in Niigata Prefecture, Honshu Island, some 300 km north of Tokyo, Japan. Commercial operations are scheduled to begin in 2024.

The Andritz PowerFluid (CFB) boiler with reheating system to be supplied features low emissions, high efficiency and availability, as well as high fuel flexibility. It forms an essential part of a high-efficiency biomass power plant for supply of green energy to the national grid. The biomass power plant fired with wood pellets and palm kernel shells will generate around 50 MWel of power.

COMPANY NEWS

 

Advanced Emissions Solutions Reports Third Quarter 2021 Results

Advanced Emissions Solutions, Inc. filed its Quarterly Report on Form 10-Q and reported financial results for the quarter ended September 30, 2021, including information about its equity investments in Tinuum Group, LLC ("Tinuum Group") and Tinuum Services, LLC ("Tinuum Services") (collectively "Tinuum"), of which ADES owns 42.5% and 50%, respectively.
Third quarter revenues and costs of revenues were $28.9 million and $18.0 million, respectively, compared with $19.5 million and $15.0 million for the third quarter of 2020. The increase in revenue was primarily the result of higher sales of consumables.

Third quarter royalty earnings from Tinuum Group were $4.2 million, compared to $3.6 million for the third quarter of 2020. The increase was primarily the result of a greater number of invested, royalty-bearing facilities compared to the prior year. Royalty income is based upon a percentage of the per-ton, pre-tax margin, inclusive of impacts related to depreciation expense and other allocable expenses.

Third quarter other operating expenses were $7.6 million compared to $7.3 million for the third quarter of 2020. The increase was primarily driven by an increase in payroll expense as well as higher depreciation and amortization expense.

Third quarter earnings from equity method investments were $22.2 million, compared to $9.5 million in the third quarter of 2020. The increase in earnings is first attributable to distributions recorded into earnings as a result of distributions from Tinuum Group being in excess of the carrying value of the investment, and therefore excess distributions are recognized as equity method earnings in the period in which the distributions occur. Tinuum Group also had an increased number of RC facilities due to the three new RC facilities added during 2020.

Third quarter interest expense was $0.1 million, compared to $0.9 million in the third quarter of 2020. The decrease in interest expense was primarily driven by the full repayment of amounts outstanding on the term loan used to fund the Carbon Solutions acquisition during the second quarter of 2021.

Third quarter income tax expense was $4.6 million, compared to $0.9 million for the third quarter of 2020. The change in income tax expense was driven by an increase in taxable income, mainly the result of higher earnings from equity method investments, as well as higher volumes and improved margins within the APT segment.


Third quarter net income was $24.3 million compared to $5.0 million for the third quarter of 2020. The increase was driven by higher earnings from equity method investments as well as higher volumes and improved margins within the APT segment.

Third quarter consolidated adjusted EBITDA was $28.5 million compared to $8.7 million in 2020. The increase in adjusted EBITDA was driven by the increase in distributions from Tinuum as well as higher consumables revenue compared to the third quarter of 2020. See note below regarding the use of the Non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

The APT segment reported record quarter and year-over-year revenue growth of 56%.


“Our APT segment reported a record quarter for both total revenue and volume as high prices for alternative energy sources such as natural gas have supported high demand from our Power Generation customers,” said Greg Marken, CEO of ADES. “As a result of the strong volumes, we were able to achieve a significantly higher gross margin and demonstrate the inherent operating leverage potential within the segment. We expect demand to remain high as we enter the fourth quarter and the colder winter months. However, inventory supply remains tight, and we continue to supplement our own production through the procurement of additional inventory from third parties to meet high levels of customer demand. As a result, margins in our APT segment – although better than the prior quarter – remain pressured by the higher cost per unit we are experiencing. We expect these pressures to persist through the end of the year and well into 2022. Meanwhile, we are simultaneously focused on continuing to improve our customer and product mix, instituting price increases for our products and advancing new activated carbon technologies alongside Cascade Environmental for the soil and groundwater remediation market.”

Donaldson Company Acquires Solaris Biotechnology

Donaldson Company, Inc. announced it acquired Solaris Biotechnology Srl (“Solaris”). Solaris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotechnology and other life sciences markets. Solaris’ product portfolio ranges from benchtop systems for research and development to pilot and commercial-scale manufacturing systems.

“We are excited about Solaris’ capabilities and growth trajectory, and this acquisition is an important step on our journey towards strengthening our presence in the life sciences market,” said Tod Carpenter, chairman, president and chief executive officer of Donaldson. “With Solaris, we are well-positioned to provide more comprehensive solutions to food and beverage customers and expand our access to biopharma and other key life sciences markets. We are committed to building our presence in these markets, and this acquisition, combined with a strong pipeline of opportunities for both focused organic growth and additional acquisitions, gives us confidence we can deliver on our strategic priorities while creating value for our stakeholders.”

Solaris was founded in 2002 and is headquartered in Porto Mantovano, Italy, with US operations based in Berkeley, CA. The Company has approximately 30 employees. Donaldson acquired Solaris for approximately €41 million. Calendar year 2021 revenue is projected to be approximately €5 million and will be reported within the Donaldson Industrial Filtration Solutions business in the Industrial Products segment.

Camfil Hosts Groundbreaking For New Jonesboro Manufacturing Facility

Camfil Air Pollution Control (APC), manufacturer of industrial dust, fume and mist collection systems for industrial processes, held a groundbreaking ceremony for its new manufacturing and office facility at Craighead Technical Park in Jonesboro. Camfil plans to invest more than $37 million in the facility, which will add about 67 new jobs within five years to an existing workforce of 237 people.

Camfil APC has been headquartered in Jonesboro for more than 20 years. In early 2020, the company was already planning to develop a new manufacturing site when a tornado destroyed their facility. Since then, Camfil has been operating out of three separate leased locations throughout the city. The new 290,000-square-foot facility will occupy 34 acres and is scheduled to open in Fall 2022. In addition to space for manufacturing industrial dust collectors and filter cartridges, the facility will also house sales offices, warehousing and shipping.

Camfil APC is a part of Camfil, headquartered in Stockholm, Sweden, and has 33 manufacturing sites, six R&D centers, local sales offices in 30 countries, and 4,800 employees and growing.

New System Accelerates Digitization of Extraction Devices

ULT AG presents a new system control. From now on, it will be integrated into the company's cartridge filter systems, which will significantly expand their communication capabilities and thus offer users convenient evaluation and control options.

This ability is based on an integrated PROFINET interface, a device that enables communication with external systems, e.g., laser processing, painting or soldering systems, and, furthermore, the reading of operating states, such as filter occupancy, power, process gas temperature, error messages, and much more. ULT AG offers the PROFINET interface as a standard in its large fume extraction devices.

An essential part of the new system control is a display with plain text. This enables, for example, the reading of operating and system states, status messages for the extraction system and device parameterization. The display also increases serviceability, as relevant data can be called up quickly and easily.

Sensors integrated into the extraction systems send important operating information to the new control, such as the filter status, fill levels of discharge containers or a filter aid metering, error messages in the case of blocked suction or exhaust pipes, and various others.

An integrated memory card for data logging is also part of the new system control, as is the option to connect to cloud services. Further communication bus systems can also be supported upon request.


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