global processing - july 2015
TRANSCRIPT
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S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S
GLOBAL
July 2015FEATURES
SILENCE IS GOLDEN
Langguth Chemie GmbH, Konigsbrunn, Germany, produces
cleaners, disinfectants and detergents for commercial and
industrial applications, as well as soaps, lotions, shower gels
and hand sanitizers. In addition to its own brands, it furnishes
private-label brands. For years, the company used plastic air-
operated double-diaphragm (AODD) pump technology. But the
pumps didnt live up to expectations in two areas pumping
high-viscosity liquids against pressure air consumption and noise
generation. Langguth Chemie now employs eight next-generation
AODD pumps in its container-filling operation, even though they
have a higher purchase price than the old pumps. That higher
price is negated by air consumption, maintenance and downtime
cost reduction. Read more on page 6.
FIRST GREENFIELD FUELREFINERY BUILT IN US IN40 YEARS NOW IN OPERATION
Production reduces regional imports of
diesel fuel. Read more on page 9.
CHINA LOOKS TO SHALE GAS;BASF LOOKS TO CHINA
Country looks for ways to respond to
climate change. Read more on page 3.
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GLOBAL
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1GLOBAL PROCESSING JULY 2015
ADVERTISING REPRESENTATION
MICHAEL C. CHRISTIAN, GROUP PUBLISHERphone: 001+908-507-5472
email: [email protected]
PRODUCTIVITY PERSPECTIVES ......................................2
ASIA
China looks to shale gas; BASF looks to ChinaBASF invests in catalysts production even as government speaks
of 25 trillion cubic meters of gas...............................................3
EUROPESilence is goldenAt Langguth Chemie, pump solution optimizes filling operations
while reducing noise............................................................6
NORTH AMERICAFirst greenfield fuel refinery built in USin 40 years now in operation
Operation will slow import of diesel in North Dakota;Texas ethylene facility significant project;
Shell looks to build.................................................................9
GLOBAL ISSUESFifteen opportunities on five continentsAround 250 sustainability experts across five continents identified
15 opportunities to address five major global risks.........................12
CONTENTS
S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S
GLOBAL
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JAY HAAS, DISTRICT MANAGERphone: 001+205-572-1058email: [email protected]
JIM SEMPLE, NATIONAL ACCOUNTS MANAGERphone: 001+908-963-3008email: [email protected]
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Munich-based multi-national conglomerate
Siemens AG is the largest engineering company inEurope, and soon, perhaps in the world, once U.S.-
based General Electric completes divestment of its
banking and other finance operations.
In fiscal 2014 Siemens generated revenues of nearly
72 billion euros from continuing operations. In that
same year, it contributed to the livelihoods of about
343,000 employees in more than 200 countries.
Its a very serious company. But, then again,
imagine how much fun it must be to work some-place that claims its all about electrification, auto-
mation and digitalization.
That same kind of work-and-play mix was evi-
dent at the 20th annual Siemens Automation Sum-
mit, held in Las Vegas June 22 to 25.
Listening to Siemens executives talk about digitali-
zation of the process industries reinforces the notion
that the central challenge remains just the integrating
of the disparate technology generations and layers.And theres no getting around the fact that one of the
best ways to address it is with a holistic infrastructure.As Peter Herweek, CEO, process industries &
drives div., recently said, we provide a unique inte-
grated portfolio, comprising hardware, software and
services across the entire life cycle.
Integrated engineering reduces error sources by
minimizing interfaces amongst disciplines, enforc-ing workflow and allowing parallel processes.
To go from engineering to integrated operations
entails consistent updating of plant data as if
you were creating a digital twin, says Herweek.
You have much better equipment maintenance
data, and an operations intelligence platform for
better decision making based on indicators like
plant utilization, raw-material availability, and pro-
duction throughput and product quality.In the very recent past a control system con-
cerned itself almost solely with things like level,
pressure, temperature and flow. Now its a 360-de-
gree environment, e.g., with capabilities related to
energy management, condition monitoring and
tele-control all part of the package.
For engineering, its all about the process model,
which is top-down, collaborative and on-line, with
views that include the plants technological hierar-chy and simulation embedded in the engineering
workflow.
KEVIN PARKEREditorial [email protected]
ENGINEERING PROFESSIONALS PLOTPROCESS-INDUSTRY FUTURE
PRODUCTIVITY PERSPECTIVES
2GLOBAL PROCESSING JULY 2015
S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S
GLOBAL
GLOBAL PROCESSING
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Digital Operations Manager, Mary Beth RomanoEmail: [email protected]
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3GLOBAL PROCESSING JULY 2015
ASIA
Chinese authorities are said to be looking for ways to respond to cli-
mate change swiftly and effectively, turning their attention towards frack-
ing and other non-conventional methods for energy production in the
hope that the country will be able to radically reduce coal use.
Chinas energy generation mostly relies on coal, but as its economy
has developed rapidly in recent years the demand for energy has also in-
creased, resulting in China becoming the largest carbon dioxide polluter
in the world. Air quality in the country has also dramatically deteriorated,
putting the lives of millions at risk, The Scientific Americanreports. These
factors have been the main driving forces for the Chinese government to
actively seek alternatives.
Reserves of shale gas are bountiful under the vast territory of the
China looks to shale gas;BASF looks to China
BASF invests in catalysts production even as government speaks of 25 trillion cubic meters of gas
Photo copyright BASF SE 2015
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ASIA Shale gas continued
country but extracting it may prove more difficult that it might other-
wise seem. It requires expertise and infrastructure, neither of whichis available in the Asian state. But helping fracking in China to lift off
is of international importance too, so the United States has teamed
up with China in pursuit of a common strategic interest, according to
David Sandalow, an inaugural fellow at Columbia Universitys Center on
Global Energy Policy.
Official Chinese figures show that the estimated amount of recoverable
shale gas is 25 trillion cubic meters, extracted from eight basins. But the
U.S. Department of Energy has calculated that Chinas reserves could be
about 36 trillion cubic meters, compared to 24 trillion cubic meters in the
United States. Clearly, if regulation allows it, China could turn into the
worlds largest shale gas producer, The Scientific American concludes.
BASF starts construction
BASF has started building a new chemical catalysts manufacturing plantat its existing site in the Shanghai Chemical Industry Park in China, in an
effort to meet growing Chinese and Asian market demand.
The chemical company said on June 18 that the new plant will be its
first process catalysts manufacturing facility in the Asia Pacific region. It
will produce base metal catalysts, custom catalysts and adsorbents, which
are used in the production of fatty alcohols, sulfuric acid and butanediol
4GLOBAL PROCESSING JULY 2015
The United States is teaming up with China in pursuit of a strategic goal.
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and for the removal of impurities from olefins.
The plant design is said to be highly automated and energy efficient. Itoffers the opportunity for future expansion and the flexibility to adapt to
new customer production requirements in the years ahead.
Commenting at this weeks groundbreaking ceremony, Detlef Ruff,
BASFs senior vice president for Process Catalysts, said that the new facil-
ity in the Shanghai Chemical Industry Park would strengthen the com-
panys manufacturing footprint in Asia Pacific and improve its proximityto customers in the fastest growing region for its base metal and custom
catalysts solutions.
Manufacturing activities at the new plant are planned to start in the
fourth quarter of 2016.
ASIA
5GLOBAL PROCESSING JULY 2015
Shale gas continued
AkzoNobel hopes its planned EUR30 million invest-
ment in a manufacturing facility in Thailand will help
strengthen its position as a supplier within the country.
The Amsterdam-based multinational says the invest-
ment will support regional growth of its performance
coatings business, as it looks to capitalize on an upturn
in business in Asia since the turn of the decade.
The Thailand Board of Investment-supported
project comprises constructing a 120,000m2site
within the Hemaraj Eastern Seaboard Industrial Es-
tate in Chonbu.
AkzoNobel estimates that the facility will initially
yield 45,000 tons per year, with production ex-
pected to start in the third quarter of 2016.
The plant will provide for a number of perfor-
mance coatings businesses, including metal coat-
ings, protective coatings, specialty coatings and
marine coatings, as well certain products from the
companys decorative paints business.
By investing in this new facility we are support-
ing our continued growth within Thailand, as well
as making progress with our regional business ex-
pansion strategy, said AB Ghosh, managing direc-
tor of AkzoNobels metal coatings business.
Conrad Keijzer, the companys executive commit-
tee member responsible for performance coatings,
explained why it is making the bold move in Thai-
land: Our business in Asia has experienced strong
growth during the last several years. As demand and
volumes continue to rise, the new site will enable us
to better serve our customers whenever and wher-
ever they need our products.
AKZONOBEL SEEKS GROWTH IN THAILAND WITH COATINGS PLANT
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6GLOBAL PROCESSING JULY 2015
Langguth Chemie GmbH, Konigsbrunn, Germany, was founded in
1963 by Rudolf Langguth. The company produces cleaners, disinfec-
tants and detergents for commercial and industrial applications, as well
as soaps, lotions, shower gels and hand sanitizers. In addition to its own
brands, it furnishes private-label brands.
The future of Langguth Chemie, however, came into question in 1993
when Rudolf Langguth passed away. Rudolfs son, Klaus Langguth,
stepped in and continues to operate the company.
This company started as a one-man operation, so we had somestruggles with my fathers illness and death, says Klaus Langguth, who is
today the companys managing director. We develop everything on our
own, manufacture everything on our own. We buy only raw materials and
develop the product, test the product and sell the product to our distribu-
tors and private-label partners.
Filled with frustration
Langguth Chemie also faced challenges in optimizing cost-effectiveness
of its production and product-transfer operations. Of concern was pack-aging where finished cleaners, detergents, disinfectants, soaps, lotions,
etc., are pumped from 6,000-liter holding tanks into containers which
generally range in size from 5 to 10 liters before being shipped to the
end-user.
Pumps transfer exact volumes while operating reliably in demanding
start/stop conditions. Pumps inject the appropriate volume and then stop
immediately, a challenge in these operations.For years, Langguth Chemie used plastic air-operated double-diaphragm
(AODD) pump technology. But the pumps didnt live up to expectations in
two areas pumping high-viscosity liquids against pressure air consump-
tion and noise generation.
We needed a reliable pump system that has high suction capabili-
ties when pumping against pressure, with high-viscosity liquids, and that
Silence is goldenEUROPE
By Harald Vogl
At Langguth Chemie, pump solution optimizes filling operations while reducing noise
Prior to its current installation a number of plastic AODD pumps failed in the continuous-dutycontainer-filling operations.
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7GLOBAL PROCESSING JULY 2015
EUROPE Langguth Chemie continued
wouldnt get dry when pumping out of containers, explains Langguth.
We tried other pumps, but they took too much air in order to work, and
they were loud, difficult to maintain and unreliable.
Complete commitment
Part of PSG, a Dover Co., Almatec is a leading brand of AODD
pumps, manufactured in PSGs Kamp-Lintfort, Germany, facility.
E-Series air-operated double-diaphragm pumps are a next-generation
technology that has replaced Almatecs standard-setting A-Series AODD
pump line. Advances include a diaphragm-sized ring on each side of the
pump that allows a series of housing bolts to be tightened against the
housing, resulting in a more even spreading of housing-bolt force; anoptimized flow pattern that decreases resistance and increases energy ef-
ficiency; and the use of less air to achieve the same level of flow.
Langguth Chemie employs eight E40 models in its container-filling
operation, even though they have a higher purchase price than the old
pumps. That higher price is negated by air consumption, maintenance and
downtime cost reduction.
The mechanical parts are more stable in these pumps. They hold the
air pressure better and longer so the air consumption is lower, Langguth
says. Its a theoretical level of 50% less air consumption and I think inpractical usage we are receiving, without any effect on flow rates, a 30%
to 50% increase in seal-ability. The old pumps needed too much air, about
double what the Almatec needs. With the old pumps we were probably
going to need a new compressor.
About those pumps
E40 pumps feature solid-block polyethylene (PE) construction (as op-
posed to the molded-plastic construction of the older pumps), have a 38
mm port size, dry-suction lift of up to 4 m, wet-suction lift to 9.5 m, maxi-mum operating pressures of 7 bar and can function with fluid temperatures
up to 70C. Standard diaphragms are PTFE (Teflon), but after several
months of use, Langguth Chemie has determined that the same, if not
higher, level of pump performance can be achieved with the incorporation
of EPDM diaphragms.
When handling soaps and other cleaners, oftentimes the ingredients
A technician doses the ingredients into a mixing vessel until the end-product is bottled andsent down the packaging line.
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EUROPE Langguth Chemie continued
8GLOBAL PROCESSING JULY 2015
are surfactants that can crack plas-
tic, which is something we alwayshad to watch out for, Langguth
says. The EPDM diaphragms are
working well so far.
The E40 pump advantage is ap-
parent when you enter the filling
room you can comfortably carry
on a conversation.
Everyone is happy with the
quieter pumps. The noise is 300percent less, says Langgueth.
Theres about seven pumps run-
ning at one time and just one of
the previous pumps made more
noise than the seven Almatecs all
running at once.
Harald Vogl is a Regional Sales Manager Germany for Almatec and
PSG. Mr. Vogl can be reached at [email protected].
Almatec is a leading brand of air-operated double-diaphragm (AODD)
pumps from PSG, a Dover Company. Headquartered in Oakbrook Terrace,
Illinois, USA, PSG is comprised of several of the worlds leading pump brands.
AODD Pumps are a solution for Langguth Chemie
because they meet the demands of stop/start
continuous-duty pumping applications while
consuming less air and generating less noise.
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Production will slow import of diesel in North Dakota; Texas ethylene facilitysignificant project; Shell looks to build
9GLOBAL PROCESSING JULY 2015
First greenfield fuel refinery built inUS in 40 years now in operation
A new refinery in North Dakota is the first
greenfield fuel refinery built in the United
States in nearly 40 years.
Joint owners MDU Resources Group, Inc.
and Calumet Specialty Products Partners, L.P.
recently held an opening ceremony for the
Dakota Prairie refinery. The facility, whichstarted operating in May, can process 20,000
barrels per day of Bakken crude oil. It is cur-
rently supplying about 7,000 barrels per day
of diesel fuel, helping to offset North Da-
kotas need to import nearly two-thirds of its
diesel supply.
This facility will help improve the states diesel supply, and over time
has the potential to be an important contributor to the economic growth
of the local and state economy, commented Dave Goodin, MDU Re-sources president and CEO.
The Dakota Prairie diesel refinery is helping us process crude right in
the heart of our states oil producing region, added North Dakota U.S.
Senator John Hoeven.
In addition to diesel, the Dakota Prairie refinery is producing up to
6,500 bpd of naphtha, which is used as a diluent to transport heavy oil
by pipeline and as a feedstock in gasoline. It
is also producing 6,000 bpd of atmospheric
tower bottoms, which can be used as a feed-
stock for lubricating oils and other refined
products.
The refinery has about 80 full-time em-
ployees and operates 24 hours a day, sevendays a week.
CB&I to build ethylene facility
Energy infrastructure company CB&I is
to construct an ethylene storage facility in
Markham, Texas, for Ingleside Ethylene. The
engineering, procurement and construction (EPC) contract is valued at ap-
proximately $115 million. Announcing the project award, CB&I said that it
covers the surface facilities including compression, dehydration, meter-ing and associated pipe fabrication at the salt cavern storage location.
The storage facility is integral with an ethylene cracker under construc-
tion in Ingleside, Texas. CB&I agreed previously to provide the license
for the ethylene technology, five SRT (short residence time) cracking
heaters and the engineering, procurement and construction of the ethyl-
ene cracker.
NORTH AMERICA
Photo copyright Royal Dutch Shell plc
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10GLOBAL PROCESSING JULY 2015
NORTH AMERICA Commodities continued
Ingleside Ethylene is a joint venture between Mexican chemical and pet-
rochemical group Mexichem and Occidental Chemical Corp. (OxyChem), a
subsidiary of Occidental Petroleum Corp.
The $1.5 billion ethylene cracker is being built at OxyChems existing
Ingleside site, with pipelines and storage in Markham. It will have cracking
furnaces with selective catalytic reduction technology to produce 1.2 billion
pounds of ethylene per year, chemicals-technology.com reported.
The ethylene cracker is a significant project both for OxyChem and
Mexichem, and the award of this project reflects the quality of work CB&I
has provided to date, commented Patrick K. Mullen, president of CB&Is
Engineering & Construction operating group.
Shell looks to build
Shell Chemical has agreed to buy a 1,000-acre site in Pennsylvanias Bea-
ver County, where it plans to build an ethane cracker complex.
The site, located off the Ohio River in Potter Township, was previously
home to a zinc smelter facility owned by Horsehead Holding Corp. Finan-
cial details of the transaction were not disclosed, but reports suggested that
Shell paid $13.5 million for the land.
Shell has drawn up plans to construct a large ethane cracker plant, which
would process locally produced ethane from shale gas production into pet-
rochemical products, including polyethylene.
Shell has not yet made a final decision on whether it will go ahead with the
multi-billion dollar project, although the company has started development
work at the site, demolishing the zinc plant and working on relocating power
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NORTH AMERICA Commodities continued
11GLOBAL PROCESSING JULY 2015
lines that run through the property, the Pittsburgh Business Timesreported.
The land purchase is a necessary step for Shell to advance the permit-
ting process and allows us to proceed with some preliminary site develop-
ment work, Shell spokesman Michael Marr explained.
A final investment decision will only be made once the required permits
have been secured, he said.
The site is well situated, with access to liquid-rich natural gas resources
and water, road and rail transportation infrastructure and power grids, as
well as sufficient land to accommodate facilities and space for potential
future expansion, chemicals-technology.com reported.
The U.S. Department of Agriculture (USDA)
wants to create additional opportunities for
growth in renewable plant-based materials.
The industry already generates substantial
economic activity and American jobs, Agricul-
ture Secretary Tom Vilsack said on June 17. A
new report says that in 2013 alone the biobased
products industry contributed 4 million jobs
and $369 billion to the U.S. economy.
Today, we are adding to the number of
innovative products carrying USDAs BioPre-
ferred label and expanding options for our na-
tions bio-refineries, Vilsack announced. This
means small businesses and global companies
alike can continue to harness the power of
Americas farms and forests to create new and
innovative biobased products that are used all
around the world.
The updated BioPreferred program rules
will no longer exclude mature market products.
That means more innovative wood prod-
ucts and other materials will carry the USDA
BioPreferred label. Forest products that meet
biobased content requirements, regardless of
market share the product holds, age of product,
or whether the market for the product is new or
emerging, will also now meet the definition of
biobased product.
Other considerations
USDA is also making improvements to its
bio-refinery, renewable chemical, and biobased
product manufacturing assistance program (the
former bio-refinery assistance program), which
provides loan guarantees of up to $250 million
for the construction and retrofitting of com-
mercial scale bio-refineries and biobased prod-
uct manufacturing facilities.
Bio-refineries that receive funding will now
be allowed to produce more renewable chemi-
cals and other biobased products, and not pri-
marily advanced biofuels. Additionally, biobased
product manufacturing facilities will be eligible
to convert renewable chemicals and other bio-
based outputs of bio-refineries into end-user
products. The new regulations also implement a
streamlined application process, USDA said.
The use of biobased products in the United
States currently displaces an estimated 300 mil-
lion gallons of petroleum per year, which is
equivalent to taking 200,000 cars off the road.
MORE PRODUCTS NOW LABELED BIOBASED
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Fifteen opportunities on five continentsIn recent months around 250 sustainability experts
across five continents identified fifteen opportunities
to address five major global risks. The results will help busi-nesses and governments, and be published next February in the second
edition of the Global Opportunity Report.
The initiative is from the UN Global Compact, DNV GL and the
Monday Morning Global Institute.
Risk requires systematic and comprehensive response. Thence a myriad
of opportunities for building better societies and businesses arise. After
identifying a set of sustainable responses to risks, the Global Opportunity
Network will survey over 5,000 public and private sector leaders. The re-
sulting guide to the greatest global opportunities will be published in theFebruary 2016 report.
The 2015 Global Opportunity Report helped inspire global change-
makers to adopt a new mindset. Its published findings indicated business
leaders have strong confidence in their own ability to turn sustainability
challenges such as water scarcity and the vagaries of fossil fuels into busi-
ness opportunities, particularly in manufacturing and finance in emerging
economies.
First report resultsThat report was based on a survey and consultations with more than
6,000 public and private sector leaders in over 21 countries. The report
confirms that there has been a turning point, where private sectors are
now a critical driver of sustainable development, with emerging econo-
mies in the front seat, says Georg Kell, executive director of UN Global
Compact.
The report identifies and ranks 15 sustainability opportunities according
to public and private sector interest and potential impact on societies and
business. Additionally, the report identifies more than 120 readily avail-able solutions.
Asked about future prospects, business leaders see untapped and prof-
itable opportunities especially in handling and providing solutions to
address water scarcity and to promote green consumer choices. Overall,
water-efficient agriculture is the opportunity that inspires most confi-
dence among the leaders.
Opportunities related to fossil fuels also were assessed positively. The
most favored opportunity here is green consumer choices. This includes
innovations to change consumer behavior to increased uptake of renew-able energy in households or a growing selection of consumer products
made with the use of renewables.
The public sector is expected to play an important role in realizing
many of the opportunities described in the report, especially those that
are regulation-oriented. Nevertheless, public sector respondents were
consistently less optimistic than the private sector about how the op-
portunities can positively affect society and their capacity to pursue these
opportunities.
Succeeding generations
However, the Global Opportunity Report indicates that this scenario is
likely to change.
For leaders below 30 years of age, female leaders and leaders in emerg-
ing economies in Asia, Sub-Saharan Africa and South America, regulated
energy transition and smart water regulation are the top-ranking sustain-
12GLOBAL PROCESSING JULY 2015
GLOBAL ISSUES
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13GLOBAL PROCESSING JULY 2015
World news continued
ability opportunities.I believe that one of the most interesting findings in the report is how
young leaders under 30 years of age, people in emerging economies and
also women embrace regulation as a strong tool for sustainable change,
says Henrik O. Madsen, Group CEO and President of DNV GL.
Emerging economies are especially ready to pursue market opportuni-
ties associated with sustainability challenges. The report shows that the
manufacturing sector especially in China is most confident in their
ability to address sustainability barriers and deliver profits and prosperity
in return.
Regionally, China is the most optimistic in the survey with 48 percent
showing great confidence in sustainability opportunities, followed by
India with 44 percent and South America 37 percent. Europe is the leastoptimistic with only 23 percent, making it the most cautious region when
it comes to belief in development associated with sustainability.
The Global Opportunity Report and the global survey will be con-
ducted annually.
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GLOBAL ISSUES