Fines, prison and arrests for irresponsible industrial CEOs and Execs

The latest issue of HazardEx (www.hazardexonthenet.net/) features two stories where company executives are being held responsible for continuing to run their operations despite known safety problems, endangering the plant, their personnel, and the public.

The former president and CEO of US oil company Custom Carbon Processing (CCP) has been sentenced to 18 months in prison and fined $50,000 for his role in a 2012 explosion that injured three workers at the company’s oil processing plant in Wibaux, Montana. Peter Margiotta was found guilty (last September) of an indictment that included conspiracy under the US Clean Air Act – general duty, and Clean Air Act – knowing endangerment, that resulted in three employees being injured. CCP was constructing the Michels Disposal Well and Oil Reclamation Facility, and Margiotta directed the opening of the plant before implementing appropriate electrical wiring, ventilation and other safety measures. He was warned by the project manager that the action ran the risk of killing not only the operators but also the plant customers.

In India, a gas leak of styrene from LG Polymers, a subsidiary of the South Korean firm LG Chem, in May 2020 killed 11 people and affected over 1000 others. An enquiry has already found a distinct lack of safety measures – even the warning siren facility installed on the plant was not functioning at the time of the leak. The plant was found to have improperly designed storage tanks, and poor maintenance: the storage tank temperature had risen to six times its allowed level over several days in April, but this had been ignored. On July 8^th the Indian authorities arrested 12 LG Polymers officials, including its South Korean Chief Executive, on charges of culpable homicide, negligent handling of poisonous substances, and causing hurt and/or endangerment to public life, which could lead to prison terms of up to 8 years.

New Titanium sensor for Emerson ultrasonic gas flowmeters

Emerson has released the Daniel T-200, a titanium-housed transducer, for its gas ultrasonic flow meter product line, marking the first use of metal 3D printing to enhance the acoustic performance of ultrasonic flow meters in gas custody transfer applications. The robust design of the T-200 provides increased reliability, uptime and safety while achieving the highest accuracy class attainable in gas flow measurement.

In an ultrasonic flow meter, transducers generate acoustic signals that are sent back and forth across the fluid stream. The difference in the transit times of these signals is used to determine the fluid flow velocity. Signal quality and strength are critical to measurement accuracy, which is paramount in custody transfer applications. An error of only 0.1% can equate to hundreds of thousands of Euros annually, in a large diameter high pressure pipeline.

“The mini-horn array of the T200 could not be made without metal 3D printing technology, making it transformational to the sound quality and performance achievable through a titanium barrier,” said Kerry Groeschel, director of ultrasonic technology, Emerson. “Emerson is committed to developing innovative solutions that help our customers achieve safer, more efficient operations.”

This all-metal sensor housing provides a barrier from corrosive hydrocarbon fluids and wet gas, thereby extending the life of transducer components and ensuring stable performance. This unique design allows the meter to be hydrotested with transducers in place, steam cleaned while in the operating line and blown down – with no limits on the rate at which the meter can be depressurised.

The T-200 can also be safely extracted while the meter is under pressure without special high-pressure extraction tools, which reduces the possibility of greenhouse gas emissions during an extraction. The capsule which contains the piezoelectric crystal – used to create and detect the ultrasonic sound waves – is retractable as a single piece, for simplicity and ease of use.

The new design is rated for a wide range of operating conditions, including pressures from 1 bar gauge (barg)/103 Kilopascal (kPa) to 255 barg/25,855 kPa and temperatures from -50 to 125 degrees Celsius.

For more information please consult the Emerson ultrasonic flowmeter website.

Rosemount GWR complies with API 18.2 for Custody Transfer

High-performance version of Rosemount 3308 GWR Wireless Level Transmitter delivers enhanced accuracy that can be verified without opening the thief hatch, thereby increasing safety.

Emerson has introduced a high-performance version of its Rosemount 3308 Guided Wave Radar (GWR) Wireless Level Transmitter that complies with the API 18.2 standard guidance for crude oil custody transfer from small lease tanks. The Rosemount 3308 is therefore said to to be the first standalone wireless radar level device to achieve this. The transmitter delivers enhanced accuracy – and also offers performance verification without having to open a tank’s thief hatch, thereby increasing safety.

“The API 18.2 standard places strict accuracy demands on level measurement instrumentation because any uncertainty during custody transfer can have significant financial implications,” said Christoffer Widahl, product management lead with the Emerson measurement and analytical business. “Measurement precision is essential in these applications, and the enhanced performance of the Rosemount 3308 delivers the high accuracy required to reduce uncertainty and comply with API 18.2.”

This new model uses an upgraded microwave module, which makes the Rosemount 3308 more tolerant to difficult process conditions and therefore able to deliver a more sensitive and repeatable measurement with high accuracy. API 18.2 requires level transmitters to operate with 1/8” (3mm) resolution and 3/16” (4.7mm) measurement accuracy, which the Rosemount 3308 achieves when set up in the new high-performance mode. This then enables it to achieve the installed accuracy of 1/4” (6.3mm) required to comply with API 18.2. In standard mode, the accuracy of the device has been improved to 1/5” (5mm).

Accuracy can be easily verified in just a few minutes using the Rosemount VeriCase mobile verification tool. This straightforward procedure does not require a tank’s thief hatch to be opened or any product to be transferred. [Opening the thief hatch can cause high concentrations of hydrocarbon gases and vapours to be released, putting worker health at risk, so eliminating this requirement is an important safety improvement.]

In addition to providing the accuracy required for custody transfer applications, the Rosemount 3308 also delivers reliability in both continuous surface level measurement and interface monitoring applications. It satisfies many applications across refineries, oil fields, offshore platforms and chemical plants, thereby providing a cost-effective standardised solution across an entire facility. The Rosemount 3308 is a top-mounted device that is virtually unaffected by changing process conditions such as density, conductivity, temperature and pressure, and because it does not have moving parts, no re-calibration is required, and maintenance is minimised. A wide range of process connections, probe styles and accessories ensure application flexibility.

For applications involving interfaces, the high accuracy of the Rosemount 3308 helps to maintain product separation by issuing an early warning if an interface is identified where there should be only one liquid. By eliminating this uncertainty and optimising product quality, the unit can help to produce significant savings for end users.

Wireless technology significantly reduces installation and configuration time for level measurement applications and can typically reduce costs by at least 30 percent compared with a wired solution. The Rosemount 3308 can be installed and operating in less than an hour – reliably transmitting data via a wireless gateway to a control system or data historian. Status information and device diagnostics are easily accessible from the control room, reducing maintenance requirements and enhancing operator safety by eliminating unnecessary field trips.

Yokogawa acquires FluidCom chemical injection valve technology

Yokogawa has announced the acquisition of TechInvent2 AS, a Norwegian enterprise
that holds the rights to FluidCom, a chemical injection metering valve (CIMV). The FluidCom CIMV prevents blockages and corrosion in oil wells, pipelines, and other facilities and employs a patented technology for thermal control. It incorporates the functions of a mass flowmeter, control valve, and valve controller and has very few moving parts. FluidCom systems have already been delivered to several international oil and gas majors. With TechInvent2 joining the Yokogawa Group, Yokogawa will now target delivery of this solution to the oil and gas upstream and midstream sectors, thereby helping to improve operational efficiency, reduce operational costs, and enhance health, safety and the environment (HSE).

Background Information

Based on its Transformation 2017 mid-term business plan, Yokogawa will continue to focus on the oil and gas industries, and will strive to strengthen its solutions targeting the upstream and midstream sectors, in addition to its forte downstream sector businesses.

Following its April 2016 acquisition of KBC Advanced Technologies, a provider of consulting services that are based on its own advanced oil and gas simulation technologies, the company has been striving to work with its customers to create
value through the provision of solutions that address every aspect of their business activities. At oil wells and pipelines, efforts to ensure a secure oil flow path (flow assurance) play an important role in maintaining production efficiency. The adherence of various chemical substances to the inside walls of a pipe can reduces its internal diameter and causes corrosion. To prevent the accumulation of substances and corrosion, certain chemicals must be injected in the pipes. Improving the efficiency of this process is a major challenge in the upstream and midstream sectors.

The FluidCom CIMV

Chemical injection valves have traditionally been manually operated in the upstream sector, although there are cases where chemical injection has been automated using an actuated solution. In the former case, the valves must be frequently opened, closed, and adjusted by plant personnel. This is costly as it necessitates the hiring of additional staff, and it is work that must be done under very harsh environmental conditions in the field.

It is also a well-known problem that inaccurate and unstable dosing of chemicals leads to additional operational costs and challenges with specific processes. To address and resolve such problems, there is an increasing demand for integrated automatic injection solutions that perform stably and offer a high level of precision in the dosing. The FluidCom CIMV has a unique design which is based on a patented technology, providing integrated flow control and metering using a unique combination of material and thermal effects.

FluidCom is a fully automated and reliable device with a simple design that performs autonomous valve control and continuous flow metering. The device is able to stably inject chemicals in the required small amounts. It has few moving parts and has proven to be an accurate, reliable solution for the control of chemical injection applications. No regular maintenance is required and remote control features are provided.

The device features a self-cleaning mechanism that reduces maintenance workload, and the automatic injection of chemicals in the correct amounts eliminates the need for manual interventions by plant operators and maintenance workers, thereby enabling personnel to lessen their exposure to harsh environmental conditions in the field.

Chemical injection valves have traditionally been operated as manual systems in the upstream sector under harsh conditions. The FluidCom can automate chemical injection operation and reduce times that plant operators and maintenance workers go to field and operate in harsh environments. So using FuidCom improves healthy and safety.

FluidCom is also a valuable solution for downstream operations, where corrosion prevention is always a pressing concern. An ISA100 Wireless version is planned. The ISA100 Wireless technology is based on the ISA100.11a standard. It includes ISA100.11a-2011 communications, an application layer with process control industry standard objects, device descriptions and capabilities, a gateway interface, infrared provisioning, and a backbone router.

Commenting on the acquisition of this company, Shigeyoshi Uehara, head of the Yokogawa IA Products and Service Business Headquarters, said: “FluidCom will improve flow assurance, which is a key concern of our customers in the oil and gas industry, and it will make a major contribution to their operations by helping them not only improve production efficiency and reduce operational costs, but also enhance HSE. The combination of FluidCom, KBC simulation technology, and Yokogawa field devices will allow us to expand the range of our upstream and midstream solutions and enable the delivery of value in new ways to our customers.”

About TechInvent2

TechInvent2 is a fully owned subsidiary of TechInvent AS, a Stavanger, Norway-based company founded in 2008. TechInvent is owned by the founder and CEO Alf Egil Stensen, the venture capital firm Statoil Technology Invest AS, Aarbakke Innovation AS, and Ipark AS. The company has been supplying its FluidCom chemical injection technology to major oil companies since 2016. Alf Egil Stensen will continue as CEO of the company now that it is part of Yokogawa.

Wireless gas detection total system

Yokogawa has announced that the ProSafe-RS SIL2 Wireless Gas Detection System will be released in September 2017. This will offer a total flammable gas detection system solution, using ISA100 wireless communications, and Yokogawa will include the necessary  consulting and engineering.

The ProSafe-RS SIL2 wireless gas detection system will consist of a newly enhanced version of the Yokogawa ProSafe-RS SIL3 safety instrumented system (R4.03.10), Yokogawa field wireless network devices, annunciator panels, and GasSecure (a subsidiary of Drägerwerk AG) wireless gas detectors GS01 or the GS01-EA (this model is equipped with an extension antenna).

For this system, Yokogawa will establish a total solution that will include both consulting and engineering.

Development Background

In energy and basic materials industries such as oil & gas, petrochemicals and chemicals, a safety instrumented system is employed to safely initiate an emergency plant shutdown when a critical failure is detected, and to initiate the operation of facilities that can extinguish or prevent the spread of a fire.

A field wireless system consists of field devices that are able to communicate wirelessly with a monitoring and control system. Wireless devices have a number of advantages such as allowing installation in difficult-to-access locations and the reduction of installation costs, and they are increasingly seen as essential elements in plant safety solutions. This is a particularly important consideration with gas detection systems, as operation can easily be impacted by factors such as installation location and ambient conditions. And even after system installation, ongoing efforts to optimise its overall configuration may necessitate occasional changes in the location and number of detection devices. The use of wireless technology eliminates the need to worry about wiring and thus greatly facilitates the process of moving and/or installing additional detection devices.

To achieve SIL2 level risk reduction when using wireless gas detectors with a safety instrumented system, communication protocols that comply with the functional safety requirements specified in the IEC 61508 international standard are required. A standard for the functional safety of electrical/electronic/programmable safety-related systems. To meet this need, Yokogawa will provide a SIL2 wireless gas detection system based on a new version of the ProSafe-RS safety instrumented system that will link to field devices using an IEC 61508 compliant communication protocol.

Features of the System

The ProSafe-RS SIL2 wireless gas detection system will consist of a new version of the ProSafe-RS safety instrumented system, R4.03.10, that will be enhanced to add support for an IEC 61508 compliant safety communication technology used in distributed automation; annunciator panels; ISA100 Wireless compliant field wireless devices; and GasSecure GS01 or GS01-EA wireless gas detectors, which are the only devices of this type in the industry that achieve SIL2 risk reduction. The ISA100 Wireless network protocol is based on the ISA100.11a wireless communication standard for industrial automation that was developed by the International Society of Automation (ISA), and the applications necessary for its implementation. This was approved as the IEC 62734 international standard in October 2014.

Total system solution including both consulting and engineering

Through the use of wireless technology, the ProSafe-RS SIL2 wireless gas detection system will allow increased flexibility with the configuration of detection devices, and will be suitable for use as a fire & gas system and emergency shutdown system thanks to its achievement of SIL2 risk reduction. Based on its knowledge of each of this system’s components and its expertise in production control, safety instrumentation, and field wireless engineering and consulting, Yokogawa will be able to offer a total system solution that includes customer support.

Enhanced operating efficiency

On their Yokogawa CENTUM VP integrated production control system screens, operators will be able to easily monitor the operation of the ProSafe-RS SIL2 wireless gas detection system as well as that of any conventional wired gas detection system. Since the GasSecure GS01 or GS01-EA wireless gas detector uses the same faceplate as a wired gas detector, operators will have no trouble identifying any changes in the detector’s status, thus helping to prevent errors that can result from the misinterpretation of information.

 Improved maintenance

With CENTUM VP, operators will have on-screen access to information on the status of all network devices, the charge remaining on the gas detector batteries, and the status of wireless communications, and thus will be able to quickly detect and respond to any abnormality. Thanks to this functionality, more efficient maintenance plans can be drawn up that, for example, will require fewer periodic checks.

About ProSafe-RS

Released in February 2005, the ProSafe-RS safety instrumented system helps prevent accidents by detecting abnormal conditions in plant operations and initiating emergency actions such as a plant shutdown. An independent certification body has certified that ProSafe-RS can be used in SIL3 applications. Unlike conventional safety instrumented systems and distributed control systems, which are regarded as having different roles and functions and operate separately, the operation of ProSafe-RS and the CENTUM integrated control system can be fully integrated. ProSafe-RS is highly regarded by users and has been installed in more than 2,100 projects worldwide (as of June 2017).

Yokogawa’s Commitment to the Field Wireless Business

Yokogawa developed wireless communication technologies for continuous processes that necessitate advanced control and released the world’s first ISA100 Wireless system devices in July 2010, thereby offering its customers a wider range of products to choose from. Currently, Yokogawa offers its customers in the oil & gas, and other industries a wide range of field wireless management stations, field wireless access points, wireless field devices, and wireless adapters for conventional wired devices.

Major Target Markets and Applications

For use in fire and gas systems (FGS) and emergency shutdown systems (ESD) in process industries such as oil, natural gas, petrochemicals, chemicals, pharmaceuticals, electric power, and iron and steel.

Dräger GasSecure

GasSecure AS is a subsidiary of Dräger, and has been a long term partner with Yokogawa in developing the market for wireless gas detectors using ISA100. GasSecure developed, markets and sells the world’s first truly wireless optical gas detector for demanding industrial applications. Representing an evolution in gas detection, the detector is based on innovative ultra-low power MEMS optical technology and has introduced a new level of reliability and flexibility for the detection of gas leaks. The totally wireless detectors increase safety and dramatically reduce costs for the oil & gas, petrochemical, marine, and other process industries. For more information, please visit www.gassecure.com.

Yokogawa/Cosasco ISA100 deal

Yokogawa has signed a sales agreement with Rohrback Cosasco Systems, a US-based manufacturer of corrosion monitoring systems to distribute the Cosasco ISA100 wireless-based MWT-3905 and CWT-9020 corrosion monitors: also Cosasco will distribute the Yokogawa ISA field wireless system devices. Yokogawa systems operating to ISA100.11a-2011 include an application layer with process control industry standard objects, device descriptions and capabilities, a gateway interface, infrared provisioning, and a backbone router.

Yokogawa therefore has now added corrosion sensors to its line-up of field wireless devices that help customers efficiently maintain facilities and ensure safety at their plants. For Cosasco, the ability to offer its corrosion monitors in combination with Yokogawa field wireless devices is expected to increase sales.

Yokogawa Objectives

With a field wireless system, plant field devices and analysers are able to communicate wirelessly with host-level monitoring and control systems. The rising need to improve productivity and enhance safety by collecting more data on plant operations is driving the demand for field wireless devices, which can be installed even in difficult to access locations. Field wireless devices have the added advantage of reducing installation costs.

Yokogawa has developed ISA100 Wireless-based technologies and products such as wireless access points and management stations, and Cosasco has a long global track record in supplying various kinds of corrosion monitors to the oil and gas, petrochemical, chemical, and other industries. Through this agreement, Yokogawa aims to increase sales for its field wireless business by being able to offer a wider field wireless device lineup.

Cosasco Wireless Corrosion Monitors

Corrosion sensors monitor the thinning or deterioration of the metal walls of pipes and other installations. A variety of technologies are employed, including electrical resistance and ultrasonics. The Cosasco MWT-3905 and CWT-9020, the devices covered by this sales agreement, are direct measuring type corrosion sensors that use high speed electrical resistance and linear polarisation resistance (LPR) technology. This enables corrosion rate measurement at a low installed cost in all process environments, including hazardous areas. The units are particularly applied for the monitoring of corrosion in facilities at offshore platforms and other types of oil and gas installations, plus petrochemical plants, chemical plants, and water and sewage treatment plants.

Rohrback Cosasco is a part of Halma plc, a UK conglomerate.

Yokogawa EPMS and SCADA for the UK’s BPAL pipeline system

Yokogawa has received an order from the British Pipeline Agency Limited (BPAL) to supply a management and control system for one of the UK’s major multi-product fuel pipeline systems, to replace the current BPAL pipeline management and SCADA systems.

The BPAL UK pipeline system consists of three integrated multi-product fuel pipelines that link two, refineries, one at Ellesmere port on the Mersey near Liverpool and the other on the Thames in Essex, to inland distribution terminals. These pipelines, operational since 1969, meet over 50% of the jet fuel needs at London’s Heathrow and Gatwick airports, and are altogether some 650 km in length. BPAL, jointly owned by Shell and BP, are the operators of these pipeline systems (known as UKOP and WLWG), which are owned by a consortium of partners.

This order is for Yokogawa’s Enterprise Pipeline Management Solution (EPMS), which will manage functions such as delivery scheduling and oil storage, and their Fast-Tools SCADA software, to monitor and control the oil pipelines and related equipment such as compressors. The EPMS uses specific gas and liquid applications that enable a pipeline operator to manage delivery contracts in a time and energy efficient manner. With the SCADA system covering monitoring and control, the EPMS will integrate the management of the SCADA data. Delivery of these systems will be completed by March 2018.

Further order for UAE Power and Desalination Station

Yokogawa also recently received its first ever DCS order for a power and desalination plant in the UAE. The company is to supply the Sharjah Electricity & Water Authority (SEWA) with control and safety systems, plus field equipment, for Units 7 and 8 at the Layyah Power and Desalination Station.

Each unit comprises a 75 MW oil and gas-fired thermal power plant and a 27,000 m³ per day multi-stage flash (MSF) desalination plant: a technology that involves the heating and evaporation of seawater in multiple vacuum distillation tanks to produce steam, which is then condensed to produce fresh water. Such systems are energy-efficient because they use the heat from the steam that is created in the vacuum distillation tanks.

Yokogawa Middle East & Africa will deliver the CentumVP integrated production control system for the boiler, turbine governor, turbine protection system and the desalination plant at each of these units, as well as the ProSafe-RS safety instrumented system for burner management and boiler protection. The field instruments will include Yokogawa products such as the DPharp EJA series differential pressure and pressure transmitters, continuous emission monitoring systems (CEMS), and steam and water analysis systems (SWAS). In addition to being responsible for engineering, the company will provide support for the installation and commissioning of these systems, with all work scheduled for completion by September 2017.

Demand for electricity and water is soaring throughout the Middle East due to their rapid economic growth. Power and desalination plants that rely on the region’s abundant oil and gas resources make up an important part of this region’s infrastructure.

Yokogawa offers ISA100 vibration sensor

Yokogawa Electric Corporation has announced the development and release of an ISA100 field wireless vibration sensor, which combines a fast data update rate with a long battery life. By providing real-time updates of the vibration levels in plant facilities, the new sensor helps users quickly detect equipment anomalies, enabling predictive maintenance.

Development background

With a field wireless system, plant field devices and analysers are able to communicate wirelessly with host-level monitoring and control systems. The rising need to improve productivity and enhance safety by collecting more data on plant operations is driving the demand for field wireless devices, which can be installed even in difficult to access locations. Field wireless devices have the added advantage of reducing installation costs.

Vibration sensors are used for the condition monitoring and predictive maintenance of plant machinery such as compressors, pumps, and motors. Conventional methods for monitoring vibration include the use of vibration sensors that rely on wired communications with a host system, supplemented by patrols by maintenance staff to collect vibration data. Wireless vibration sensors offer the same capabilities, with a much reduced installation cost and improved versatility: plus with the increasing adoption of ISA100 wireless technology across process plants, these sensors are a simple addition to such standard systems.

Since releasing the world’s first ISA100 Wireless-based field wireless devices and wireless systems, Yokogawa has expanded its line-up of field wireless devices that measure temperature, pressure, flow rate, and the like. This new vibration sensor will meet the  customer requirement for a device that can provide the fast updates on vibration levels needed to detect anomalies at an early stage.

Product features

ISA100 Wireless is a technology that is based on the ISA100.11a standard. It includes ISA100.11a-2011 communications, an application layer with process control industry standard objects, device descriptions and capabilities, a gateway interface, infrared provisioning, and a backbone router.

The principal components of this field wireless vibration sensor are the FN510 field wireless multifunction module, the LN01 piezoelectric type acceleration sensor, and the FN110 field wireless communication module. Via a gateway device, the FN510 uses the ISA100 Wireless communications protocol to exchange data with a host-level system such as the existing plant DCS. The data collected with this vibration sensor enables plant operators and maintenance staff to monitor vibration levels in real time. Both standard industrial and explosion-proof/intrinsically safe sensor types are available, with approvals to FM, CSA (cFM), ATEX and IECEx.

The LN01 sensor is the small item at the bottom of the picture, presumably! The box provides the plant mounted protection for the FN510

The LN01 sensor monitors vibration in the frequency range 10Hz to 10kHz, with an update rate of 10 seconds minimum. Measurements are provided of vibration velocity up to 160mm/sec (6″/ sec), and acceleration up to 300m/sec² (1 ft/sec/sec). On site the sensor has a cable connection to the FN510 free-standing field wireless multifunction module, the cable is typically up to 10m long. Battery life can be as long as 10 years, if the update rate is set at once per minute.

The Yokogawa approach to field wireless sensors

Yokogawa says they will continue to expand their lineup of ISA100 Wireless transmitters and other devices such as adaptors to develop best-in-class solutions that provide higher value to customers, and promote the use of field wireless technologies.

Their current ISA100 presentation includes their own pressure, temperature and flow sensors, plus other sensors from third parties, for example the Draeger GasSecure flammable gas detector, and the Spirax Sarco STAPS steam trap monitoring system. They have also previously featured products from the Bently Nevada vibration monitoring systems, which also use ISA100 wireless communications: the ISA100 system does permit the frequency spectrum from such devices to be transmitted to dedicated monitoring analysers. The Yokogawa development of the LN01 accelerometer sensor will effectively complement such systems.

(c) ProcessingTalk.info

Alfa Laval sees marine market growth in ballast and SOx

Readers of this blog will recall the Alfa Laval launch on their “PureBallast” water treatment system for marine vessels way back in 2007. The IMO international convention for the ‘control and management of ship’s ballast water and sediments’ was the legislation that would drive the adoption of such systems world-wide: at last this convention became legally binding on shipping and ship-owners worldwide on 8^th September 2016. Inevitably there is a 12 month time lag before it will be legally enforced, and then, hopefully, tankers will not be allowed to ply their trade without having an approved ballast water treatment system fitted.

Ballast water treatment market

Peter Leifland, current president of the Marine & Diesel Division of Alfa Laval presented some interesting views of this market in support of the recent Alfa Laval Capital markets Day presentation to analysts and stockbrokers.

Leifland commented that “With the ratification in place, the market for retrofit installations is expected to start to move.”  Alfa Laval expects that 35 000 ships will install a ballast water treatment system between 2017 and 2025. This is split between 15 000 newly built ships and 20 000 retrofit installations. The average order value per ship for the Alfa Laval chemical-free solution is EUR 200,000 – 225,000.

The Alfa Laval system fully complies with IMO standards and requirements, but as ever different countries can impose further approval and performance requirements and testing, effectively policing their own waters so that only ships with their approved systems can trade in their waters. This means more approval testing, fees, and even design changes for suppliers like Alfa Laval. They have their PureBallast system nearing completion of the long testing procedure needed by the US Coast Guard to check that it meets with their USCG criteria.

Shipboard sulphur oxide emissions (SOx)

The IMO convention for the reduction of sulphur oxides (SOx) emissions from ships has been ratified and since 2015 it has been implemented in some Emission Control Areas (ECAs). This IMO regulation will become global by 2020, requiring that that emission levels will be cut to 0.5%.

Leifland commented that “Alfa Laval estimates that 5 000 ships, new as well as existing, will install a scrubber solution in the period 2017-2025.” Given the continuing development of new solutions, Alfa Laval’s average order value per ship is expected to be EUR 1 million. Leifland sees these two developing markets as a useful opportunity, during a period where “falling ship contracting is impacting our order intake”.

Postscript 27 December 2016: 

Alfa Laval PureBallast 3 receives U.S. Coast Guard type approval

Peter Leifland, President of the Marine & Diesel division in Alfa Laval, reports that:

“I am very pleased to receive this type approval, as it confirms the reliable performance of our ballast water treatment system. We now have a system approved by both US Coast Guard and the International Maritime Organization”.

Alfa Laval PureBallast 3 has received US Coast Guard type approval for usage in all water salinities, including fresh water. It follows upon two and a half years of compliance testing, according to the strict demands of the Environmental Protection Agency’s “Environmental Technology Verification” (EPA ETV) testing protocol. The tests were performed at DHI’s test facilities in Denmark, supervised by DNV GL as the independent inspection laboratory.

 

GE and Baker Hughes combine

The Offshore Engineer reports that GE and Baker Hughes are teaming up to form the “new” Baker Hughes, a company that will be led by current GE Oil & Gas CEO Lorenzo Simonelli and have dual headquarters in Houston and London.

The agreement will combine GE’s oil and gas business (GE Oil & Gas) and Baker Hughes, in what the two hope will be a leading equipment, technology and services provider with US$32 billion of combined revenue and operations in more than 120 countries.

The deal has already been unanimously approved by the boards of directors of both companies. At closing, which is expected in mid-2017, Baker Hughes shareholders will receive a special one-time cash dividend of $17.50 per share and 37.5% of the new company, with GE owning the remaining 62.5%. The deal is still subject to approval by Baker Hughes shareholders, regulatory approvals, and other customary closing conditions.

Both GE and Baker Hughes expect to generate “total run-rate synergies” of $1.6 billion by 2020, which has a net present value of $14 billion, that will primarily be driven by cost out, and positioned for growth as the industry rebounds.

“By drawing from GE technology expertise and Baker Hughes capabilities in oilfield services, the new company will provide best-in-class physical and digital technology solutions for customer productivity,” the two companies said in a joint statement.

The new company will combine the digital solutions, manufacturing expertise and technology from GE, in addition to the track record of success Baker Hughes has in the oilfield services sector.

“With combined revenue of over $32 billion, the product portfolio of GE Oil & Gas and Baker Hughes in drilling, completions, production and midstream / downstream equipment and services will create the second largest player in the oilfield equipment and services industry,” according to the statement from the two companies. “Customers should expect sustainable innovation and integration that will deliver valuable outcomes. Both companies have invested even in the downturn and have strong, complementary competitive scope across the industry. From GE’s fullstream oil and gas manufacturing and technology solutions spanning across subsea and drilling, rotating equipment, imaging and sensing, to the Baker Hughes portfolio in drilling and evaluation and completion and production, the combined company will be moving beyond oilfield services and into oil and gas productivity solutions.”

Upon closing, the new Baker Hughes board will consist of nine directors: five of whom, including Chairman Jeff Immelt will be appointed by GE and four, including Vice Chairman Martin Craighead will be appointed by Baker Hughes.

“This transaction creates an industry leader, one that is ideally positioned to grow in any market. Oil and gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes,” said Jeff Immelt, GE chairman and CEO. “As we go forward, this transaction accelerates our capability to extend the digital framework to the oil and gas industry. An oilfield service platform is essential to deliver digitally enabled offerings to our customers. We expect Predix to become an industry standard and synonymous with improved customer outcomes.”

“This compelling combination brings together best-in-class oilfield equipment manufacturing and services, and digital technology offerings for the benefit of all customers and stakeholders,” Martin Craighead, Baker Hughes chairman and CEO said. “The combination of our complementary assets will create a platform capable of seamless integration while we enhance our ability to deliver optimized and integrated solutions and increase touch points with our customers.”

“This transformative transaction will create a powerful force in the oil and gas market as we continue to drive long-term value for our customers and shareholders,” Simonelli said. “Both companies’ employees will benefit significantly from being part of a larger, stronger company that is positioned for long-term growth. We look forward to combining the digital solutions and technology from the GE Store with the domain expertise of Baker Hughes and its culture of innovation in the oilfield services sector.”

The full release is available on http://www.businesswire.com/news/home/20161031005488/en/