CNW GREEN Supplement

GREEN

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A Special Focus

G R E E N = G A S ( S H A L E ) , R E C Y C L I N G / WA S T E M A N A G E M E N T, E N V I R O N M E N TA L E N E R G Y N O R T H W E S T

Shale gas: opportunities and threats for the North West chemical industry and beyond Can Shale Gas transform the economy?

This supplement is sponsored by

Investing in Britain and Ireland’s Industrial Future www.siemens.co.uk/industry

Answers for industry.

WELCOME

Contents

Welcome

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Condition Monitoring System

6

On the road to a greener future…

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Save time and money whilst reducing your carbon footprint

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Helping SMEs make the transition to a low-carbon economy

The GREEN feature covers topics which are important to Chemicals Northwest and to the chemical industry of the future.

12-13

Big Interview

16-19

Shale gas: opportunities and threats for the North West chemical industry and beyond

20-21

Can Shale Gas transform the economy?

The features covered include Shale gas and a comprehensive “All you need to know” guide on the potential shale industry. Features will also touch upon recycling, waste management, energy and the environment which are all hot topics to ensure the chemical industry remains ahead of the game for the future.

Chemicals Northwest and Distinctive Publishing are pleased to introduce the GREEN supplement for the Summer edition of Elements.

Although the supplement includes the North West the topics covered are important worldwide for the industry as a whole.

Over the next few months Chemicals Northwest are hoping to run events along the themes of the supplement so if you have any ideas for this then please get in touch.

We hope you enjoy reading the GREEN supplement.

John Roche Operations Manager, Chemicals Northwest

Contact details John Roche Operations Manager Email: RocheJ@CIA.org.uk Alex Heys Member Services & Events Manager Tel: 01928 515678 Email: alex.heys@ chemicalsnorthwest.org.uk Advertising Anthony McKeown, Distinctive Group Tel: 0845 887 3810 Mob: 0755 702 6900 Email: anthony.mckeown@ distinctivegroup.co.uk Disclaimer

Distinctive Publishing or Chemicals Northwest cannot be held responsible for any inaccuracies that may occur, individual products or services advertised or late entries. No part of this publication may be reproduced or scanned without prior written permission of the publishers and Chemicals Northwest.

Sponsor

This edition is sponsored by

ELEMENTS SPRING 2014

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CONDITION MONITORING

Get in the right condition Sean McDonagh, Business Manager, Chemical at Siemens Industry, outlines why adopting a condition monitoring system (CMS) can deliver benefits for UK chemical manufacturers seeking effective and efficient operating strategies, as well as looking to safeguard their futures.

The old adage “time is money” has never been more important to UK chemical manufacturers. Look at any company report and sustainability is at the forefront of their drivers, remaining a critical factor for the business if it is to maintain a competitive advantage and grow in the global market.

Recognising such risks, the chemical sector is beginning to realise the benefit to be gained by adopting a whole lifecycle approach to assets, and are starting to take strategic operational investment decisions aimed at increasing equipment and process data visibility and asset availability for the foreseeable future.

A key challenge for many concerns investment. Do they, for example, look to invest in a managed whole life cycle strategy for their assets or, having made previous capital investments, continue to sweat assets to the point of failure but also increasing the risk of equipment outages, expensive downtime incidents and, ultimately, costly lost productivity?

Condition monitoring systems are playing a central role in this approach, helping to deliver tangible benefits to underscore operational efficiency, plant maintenance, safety and energy reduction objectives.

For those following a course of ‘make do and mend’, damaged reputations, reduced profitability, missed delivery schedules, and potential closure, have, unfortunately, been the bitter experience for a number of UK chemical manufacturers who have fallen victim of not taking a holistic and long-term view.

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Benefits of Condition Monitoring High system availability is the most effective lever for increasing productivity.

The less downtime, the better. This is why it is important to identify potential sources of error early and to perform scheduled maintenance at the right time within the production cycle. The benefits arising from such a strategy include the provision of greater transparency for the

status of components and machines; increased productivity levels; reduced time and expense required for inspection and maintenance, and real time visualisation from the cloud.

Plant operators in all chemical industries consider increased availability and shorter downtimes to be the most effective lever toward increasing productivity.

Investigations have shown that downtimes are frequently the result of insufficient maintenance – despite the fact that maintenance is responsible for a significant portion of the lifecycle costs.

Companies can avoid downtimes by implementing measures before problems occur and schedule such measures based on time or workload. Regular servicing work is an example of time-based measures with maintenance based on workload determined by the number of switching operations, operating hours or peak times.

Adopting condition monitoring strategies provides information on the remaining

CONDITION MONITORING

useful service life of critical components and machines, and condition based monitoring involves implementing maintenance measures only when the wear of the device or device parts has exceeded a certain limit. It has been shown in practice that companies can achieve optimum results when they combine different maintenance strategies in a smart way.

By creating models of the machine’s performance and then constantly comparing the data, customers can also look at achieving optimum performance for their asset. Support in the form of the Siemens cloud based visualisation cockpits can, for example, allow a customer to see asset performance remotely.

Application in a chemical process With a well implemented CMS, the state of components subject to wear and tear, including motors, gear units & bearings, and other critical machine parts, can be continuously monitored.

The CMS should provide constant monitoring for the protection of machines and processes providing early detection of damage through vibration, loading stresses and temperature, whilst monitoring power consumption, flow and pressure data. Available statistics on the remaining life of the asset and energy wastage levels can significantly help to optimise service life of the units and facilitate improvements in maintenance planning.

Some of the typical data monitoring points beneficial in chemical manufacturing can include: automation and IT networks, conveyor belts, mechanical drive trains, centrifugal pump monitoring, pump

cavitation, heat exchangers, control valves, process pipe work, instrumentation, motors, generators, fans and pumps.

These are all asset areas that can benefit from a condition monitoring strategic approach.

Keeping assets performing effectively also makes good business sense. Thinking about daily operations costs, if a critical process fails and production is shut down resulting costs can be in excess of £100,000, which is not uncommon.

As important, associated environmental cleanup costs can also add to the bill, not to mention the negative impact upon a company’s reputation and brand. A chemical manufacturer that experienced a leak in a pipeline was forced to account for environmental cleaning costs in excess of 1 million euro, making such occurrences a significant business risk and the need to avoid them a necessity.

With up to 50% of preventative maintenance investments deemed unnecessary, and with avoidable expenses potentially increasing up to 20%, there is a clear case for the benefit that condition monitoring of assets can deliver as it underpins a move from a preventative to a predictive maintenance strategy.

Solutions for condition monitoring In the chemicals market, bulk, specialty or consumer manufacturers, all face similar challenges across a plant’s production, utility material management, and logistics areas.

Implementing condition monitoring of a specific equipment type is a good start.

However, the vast potential to significantly enhance operational performance through a well planned fully integrated approach

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to IT, automation, electrical & mechanical equipment, will improve operational performance throughout the entire life cycle and should be considered essential best practice to fully maximise efficiencies.

Fully integrated technology platforms deployed with a proven maintenance station as part of the SCADA or DCS provides a view of the entire production process, with embedded reporting and trend data analysis tools providing key diagnostics and maintenance condition data. In essence, this provides the insight on which to base strategic decisionmaking. Such data is crucial for plant support teams, allowing them to plan and implement maintenance operations in an appropriate and timely manner.

Finally, running alongside the technology, companies also need to consider staff resources as a key asset. Increasingly, skilled engineering internal resources are becoming leaner and highly utilised, with analysis from the chemicals sector estimating that upwards of 50% of experienced engineering staff could retire over the next decade and leave the sector for good.

Chemical manufacturing operations need to assess their ongoing engineering and project management capacity to carry out audits, produce improvement reports and take on design responsibility. Should they, for instance, seek to look outside the organisation for support from proven suppliers offering results-driven condition monitoring technologies and services to not only tackle current concerns but also safeguard the future?

It is a key question chemical manufacturers need to be considering today.

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K HOME INTERNATIONAL

On the road to a greener future…

Engineering firm, K Home International Ltd (KHI) has recently achieved the ISO 14001 Environmental Management accreditation - awarded by independent auditors BSI (British Standards Institution).

BSI is the business standards company that helps organisations all over the world make excellence a habit. For more than 100 years, they have led the way in assisting companies maintain standards. By certifying with BSI, KHI is demonstrating to all stakeholders that the company uses industry-respected best practices.

The company now has certification from BSI on all of its current management systems which include; BSEN ISO 9001 Quality Management and OHSAS 18001 Occupational Health and Safety. The process of achieving and maintaining all three certifications assures clients of compliance to national and international standards and commitment to continuous improvement in the services provided.

We are now living in a world where sustainability and corporate responsibility are becoming pre-requisites to being engaged on projects, ISO 14001 is an internationally recognised standard for demonstrating commitment to the reducing the environmental impact of corporate operations throughout design and construction.

Certification to ISO 14001 indicates the company’s attitude and responsibility toward the environment.

“Establishing and maintaining an

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environmental management system (EMS) required significant investment of time and resources, current BSEN ISO 9001 and OHSAS 18001 procedures had to be incorporated to suit the EMS standard.

This investment indicates its commitment to monitoring, managing and improving our environmental performance”. Said Chris Gunn - HSEQ Manager for K Home International.

“We are now able to tender for a wider range of projects on a level playing field with our competitors.”

KHI supplies world class multi discipline engineering design solutions from concept through to beneficial operation for operators and developers of process plant and infrastructure projects. The company is privately owned delivering professional, comprehensive and integrated services to the chemical, petrochemical, energy & nuclear, metal & minerals and oil & gas sectors.

Typical services provided by KHI include: Conceptual Design and Feasibility Studies; Front End Design and Definition; 3D Modelling / Visualisation; Detailed Design; Project Management / Planning; Procurement; Health, Safety & Environmental Management and Construction Management.

Focused on current Health, Safety and Environmental legislation the company is committed to providing a flexible, forward thinking, cost effective multi discipline engineering design, project and construction management services to its clients, past, present and future.

Lee Anderson, Operations Director for K Home International said “The ISO 14001 accreditation is an internationally accepted standard, which will allow our company to grow without overlooking environmental responsibilities. It has identified our environmental impacts and allowed us to consider how we can reduce them and become more efficient in the execution of our works.”

“The company now has the full suite of the standards, including BSEN ISO 9001 and OHSAS 18001, which recently went under a periodic audit and was a great success which forms part of our Integrated Management Systems.”

PERRY PROCESS

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Save time and money whilst reducing your carbon footprint Many companies believe that being environmentally friendly comes with added costs to the business. By purchasing quality used equipment for your processes, you can save time and money, as the equipment is immediately available and is typically 70% cheaper than purchasing new. It is a great way to save money whilst reducing the use of raw materials and your carbon footprint.

The process industry is traditionally a very energy and resource intensive industrial sector. Energy and resource efficiency, modern technologies and responsible sourcing play a key role in reducing each manufacturers impact on the environment.

When thinking about shrinking their environmental footprints, many chemical companies don’t consider used process equipment when plant is required. They know that due to global warming, they must all consider how to reduce the environmental impact of processes and products. Consumers are also increasingly demanding “greener” products and care about their environmental impact.

Perry Process is contributing towards environmental sustainability: Perry Process Equipment Ltd can optimize your use of raw materials by buying and selling second-hand process equipment throughout the chemical sector. Perry has been a dealer of used process machinery since 1932, but more recently it has become apparent that due to the environmental impact of the manufacturing industry and the efficient management of raw materials, manufacturing companies are looking to change aspects of their process to help strengthen their commitment to sustainability.

As global awareness increases the need to reduce and measure resource usage becomes more important. Perry Process can refurbish equipment inhouse and they also work with OEMs (Original Equipment Manufacturers) and Engineering companies to improve used equipment so that is more energy efficient and meets environmental standards.

The removal and logistics of used equipment has also been something that Perry has been consciously looking to improve on, transporting items as efficiently as possible to help reduce their transport emissions. They achieve this by stocking equipment globally in their many

Lighting upgraded by GME Industry Ltd

warehouse facilities, storing 1000s of pieces of process equipment so that their customers can source equipment from the nearest site.

When short-term survival is the top priority, it can be onerous for businesses to research all the drivers, themes, funding schemes, opportunities and threats that sustainability encompasses. Used process equipment will not only save your company time and money, typically 70% cheaper than new, it will also contribute to reducing your carbon footprint.

Saving energy with lighting: Recently, Perry Process Equipment looked at ways they could help save energy at their premises and as a result they have upgraded their warehouse lighting, replacing their 400W sodium lamps with 32 LED lamps. This change is going to save them 75% on electricity and reduce their carbon footprint by over 8 tonnes per year. The lighting at Perry’s UK facility was

upgraded by Steve Black at GME Industry Ltd, Newcastle.

To discuss your future equipment requirements or potential projects, email or visit their website: Tel: 01325 315111 e: info@perryprocess.co.uk w: www.perryprocess.co.uk Save Even More: Perry Process Equipment is currently offering all Chemicals North West members a 10% discount on their first completed order. To take advantage of this offer please contact them quoting reference PERRY10. Contact Perry Process for a quotation, even as a comparison.

REDUCE REUSE RECYCLE with equipment from Perry Process

Green Supplement SUMMER 2014

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Could your plants, by-products and wastes be working harder for you?

If you are an SME* in Yorkshire and the Humber we can offer funded support to help improve your process and product development in our R&D scale-up facility in York, UK. Our expertise, services, modular open-access facilities and access to over 100 scientists across the fields of chemistry and biology, put us in a strong position to facilitate the development of your bio-based projects.

*Defined as less than 250 employees with a turnover less than â‚Ź50m or a balance sheet less than â‚Ź43m

Plants

Processes +44 (0)1904 435364 biorenewables@york.ac.uk

Products follow us for latest updates

BDC

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Helping SMEs make the transition to a low-carbon economy The Biorenewables Development Centre (BDC) is a not-for-profit company that helps businesses develop new ways to convert plants, microbes and bio-based wastes into profitable green products.

The BDC uses applied research and technologies in their Yorkbased facilities to support businesses to develop and scale-up new processes as well as to optimise bio-based materials. Their approachable specialists can help with diverse projects at any point in the bio-based supply chain, including:

Funding for SMEs

n Fast track-breeding of plants and microbes

The specialists at the BDC can work on almost any type of project that uses biorenewable materials (e.g. plants, food and their associated wastes, or processes linked to these materials) and have two exciting funded opportunities for SMEs in Yorkshire and the Humber.

n Process development and optimisation

Business support

n Fermentation studies, including anaerobic digestion (AD)

The BDC can offer two days of fully-funded time for discrete projects to help SMEs explore the business opportunities for their biorenewable materials and processes. These projects can be desk or laboratory-based and have in the past been able to provide the scientific evidence to improve products, drive investment and open up new markets.

n Demonstration and scale-up n Policy, regulatory, business or funding support n Analytical services

The BDC works with companies of all sizes and locations although they do have special support on offer for small to medium-sized businesses (SMEs) in Yorkshire and the Humber through funding from the European Regional Development Fund (ERDF).

Fabien Deswarte, Business Development Unit Manager at the BDC explains: “We have worked with over 100 companies to date, including personal care manufacturers, brewers, landscapers, vegetable oil producers, plant breeders, environmental technology businesses and many more.”

“We have found that our work has the potential to provide the scientific evidence to help businesses put forward a strong business case to transition towards a low-carbon bioeconomy and to date, all of our clients have said they would recommend us.”

Capital equipment grants The Biorenewables Capital Grants Scheme (BCGS) helps SMEs purchase equipment for innovative bio-based projects, and can be an opportunity to implement outcomes from the business support projects. The grant provides 64% of the funding towards the purchase of equipment for novel projects, up to a value of £32,000 per SME. The grants are available in four calls throughout 2014 and early 2015 and expect to fund 25 projects with a combined project value of £1M. The BDC is on track to help 190 SMEs through its ERDF funding

by June 2015.

Visit their website or get in touch with them to see how they might be able to help your business: www.biorenewables.org or +44 (0)1904 435364.

The BDC in practice: improving yields of oil from crop seeds One of Europe’s leading specialist oil extraction companies – North Lincolnshire based New Holland Extraction – is constantly looking to innovate and develop new products to improve its market share.

Using seed samples from New Holland Extraction’s own production plant south of the Humber, the BDC’s oil extraction specialist, Dr Raymond Sloan, has been looking at alternative technologies for extracting the special oils that are at the core of the company’s business.

Colin Watkinson, New Holland Extraction’s Plant Manager in the UK, said: “Although we are a relatively

small company we have big ambitions and are constantly seeking to improve the way we work and the products we offer… The team at the Biorenewables Development Centre has been instrumental in giving us new insights into how we can make those improvements”.

Raymond and the team at the BDC were able to examine in detail how the company’s extraction processes might be improved. As a result, the BDC was able to identify an existing technology that could improve yields by using a more efficient and effective method of extraction.

Colin added: “The work we have done together has enabled us to go to our parent company in Holland and make a powerful case for investment in new equipment. It has opened our eyes to new ways of doing things.”

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CENTRE FOR GLOBAL ECO-INNOVATION

Centre for Global Eco-Innovation helps business enter US market Technology company DemoPad are market-leaders in home automation controls.

Run by Andy Casey and Mike Cain, their core business focuses on developing software applications for tablet devices to transform them into remote controllers for sophisticated home and business entertainment, security and heating systems.

Thanks to their involvement with the Centre for Global Eco-Innovation, DemoPad have produced the ‘Centro 8’ processor as part of a collaborative research project facilitated by the centre.

The centre, part-funded by the European Regional Development Fund, unites the expertise, resources and global contacts of Lancaster University, the University of Liverpool, and Inventya Limited, to develop new eco-innovative products with northwest businesses.

automatically control heating and lighting in homes – helping to reduce energy use – reducing bills and carbon consumption.

The Centro 8 acts as a connecting hub for sophisticated high-end home entertainment systems. It is also able to

Mike Cain, Director of DemoPad, said: “This investment through the centre has encouraged us to think we can compete

A key part of the development of the ‘Centro 8’ processor was based on algorithms created by Alex King, Lancaster University graduate researcher.

DemoPad, which has offices at Lancaster University’s InfoLab21, has also been able to open offices in the United States to help promote the Centro 8.

Collaborate with two world-class universities and realise your ambitions for business growth through R&D. The £9.8m Centre for Global Eco-Innovation unites the expertise, resources and global contacts of Lancaster University, the University of Liverpool, and Inventya Limited, to develop new eco-innovative products, processes and services in collaboration with ambitious northwest businesses.

Do you have any products, services and ideas which will reduce environmental impact, or benefit the environment, and want help in commercialising, refining or developing them?

on a global scale and enabled us to bring benefits to all aspects of our business.

“Our relationship with Lancaster University and the centre has been nothing short of transformational. It has given us the opportunity to have a huge extension of our R&D resource.

“The scheme provides a graduate researcher as the project lead but there is a substantial added value in the involvement of the whole university team behind the student to guide and contribute as required.” www.cgeinnovation.org

Applications open now from for funded One Year R&D projects from SMEs based on Merseyside or for shorter projects from businesses across the Northwest.

WhY REgiStER A pROjEct? Gain resources and time to develop innovative new products, processes and services Cut the costs of R&D - one year R&D for just £2,000 Access a wide range of expertise from across two world-class universities Increased profitability from new products and services To apply for a project, register online www.cgeinnovation.org/register The centre is the only one of its kind in Europe and is part funded by the European Regional Development Fund.

www.cgeinnovation.org/register

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BOUYGUES ENERGIES & SERVICES

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Bouygues Energies & Services launch its Corporate Responsibility Report Bouygues Energies & Services unveiled extensive details of its corporate responsibility (CR) activities. Protecting the environment in which it operates, developing partnerships with its customers and suppliers and helping local communities are the guiding principles that ensure business is carried out in a caring and responsible manner.

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Our drive for continuous improvement places longterm partnerships at the centre of our business model.

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This interactive report provides examples of how implementing energy focused solutions can significantly reduce client energy spend and carbon footprint; detailing how key areas such as promoting a positive health and safety culture throughout the business are paramount. The organisation also holds its own set of environmental standards branded Ecosite, guiding the business to work holistically with clients and suppliers to minimise the environmental impact of its activities.

Simple Step to Smarter Solutions Transforming your innovative ideas and processes into a world class sustainable commercial reality, Bouygues Energies & Services combine decades of experience with cutting edge technology and creativity to provide added value solutions to your products and services to drive them to market first.

Ecosite is shared across Bouygues entities around the world Bouygues Energies & Services recognise and appreciate the importance of delivering longterm value to all stakeholders, whether its training employees, assisting small businesses improve practice and policies, working with local charities or delivering energy saving strategies, partnering is key. Working with and learning from others is fostered across the whole organisation.

Bouygues Energies & Services Strategic Development Director, Steve McDonald said: “Our drive for continuous improvement places long-term partnerships at the centre of our business model.

Each CR commitment has internal measured targets that require teams across the whole business to advocate and participate; demonstrating the willingness and motivation of our employees who ensure we progress and improve year upon year.”

Design • Build • Operate • Maintain • Process • Facilities

www.bouygues-es.co.uk For further details contact our experts on +44 (0) 161 249 1000 or contracting@bouygues-es.co.uk

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BIG INTERVIEW

The green revolution - does it really need to be like this?

Renewable energy is the current buzzword in industry. The trouble is that because much of it is inextricably linked to subsidies, the pressure on public budgets imposes an increasing strain on finances.

But what if it was possible to relieve those pressures not just by energy generation but by something which is much easier to achieve yet not as glamorous?

That’s the message from Siemens Industry UK, one of the UK’s leading suppliers of environmentally-friendly products to industry, which says that not enough attention is being paid to the value of energy saving.

Sean McDonagh, Business Manager Chemical, said: “The debate between energy suppliers and politicians over energy prices has crowded out messages on energy efficiency. Whilst energy companies and politicians are bouncing brickbats off each other, the real issue is the consumption and resultant cost of energy.

“Not only is there concern about the cost but more waste means that the security of energy supply will become an increasing concern as power stations are closed.

“Whilst it is right that we should investigate alternative sources of fossil fuels such as shale gas, it is unlikely that this will yield dramatically lower energy prices in the UK anytime soon.

“The quickest most effective source of lower energy bills is currently underexploited - energy efficiency.

Experience from thousands of energy audits across all areas of industry and commerce reveals that most organisations can still yield 15-20% reductions in energy consumption by applying cost-effective measures.”

George Giles, Head of Renewable Power and Oil & Gas, Siemens Industry UK,

“

agrees, arguing that the time has come for the industry to move on to more selfsufficient financial models.

He said: “The role of subsidy in the development of the energy from waste (EfW) market has been to provide the confidence for operators to create the infrastructure required to build the market, as well as help embrace the expanding technology solutions required to process waste streams.

“As a result of the financial safety net that subsidies provide, prospective developers have felt confident to push forward with plans which have seen a proliferation in the numbers of energy from waste plants created across the UK. “Both local authorities and private operators are more than aware that the current low level of waste going to energy from waste streams – some 17%, according to 2014 figures from the European Commission – needs a drastic uplift if national carbon targets are to be met. The need for effective, operationally efficient and financially sound energy from waste plants has never been clearer.

“It could be argued, though, that growth in the sector has been hampered by constant policy changes that have undermined investor confidence. Uncertainty breeds caution and alterations to the rules and regulations associated with the attainment of subsidy support over recent years has created a potential barrier for growth despite the undoubted attraction of the subsidy itself.

“Until such time that a settled period of policy is seen, a number of potential

investors into the sector will have second thoughts. This has to change.

“While the existence of subsidies to conceive, plan, design, construct and operate energy from waste plant has helped the market mature to its current position, perhaps the time is right for us to ask questions about the future viability of the sector without subsidy aid.

“Can it be weaned off its financial life support system and can it build and sustain a self-sufficient financial model to aid future growth prospects? In my opinion, the answer is a qualified ‘yes’.”

According to Sean McDonagh, effective energy use reduction can increase that self-sufficiency.

He said: “The answer is to apply a professional and systematic energy analysis supported by specific expertise to identify real opportunities for energy reduction.

“Many onsite or web-based tools are available for this. Our ‘Energy Analytics‘ process, for example, takes this to a higher level by providing this as a managed service. All forms of heating and cooling are always a rich source of energy reduction opportunities and should be carefully analysed.

“Applying a systematic and professional energy analysis then implementing a continuous improvement programme is the right way to proceed.

“Look at any company report and sustainability is at the forefront of their drivers, critical to the business if it is to remain competitive and grow in the global market.

Look at any company report and sustainability is at the forefront of their drivers, critical to the business if it is to remain competitive and grow in the global market.

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”

BIG INTERVIEW

George Giles

“A key challenge is do they invest in a managed whole life cycle strategy, or having made capital investment, continue to run assets to the point of failure, risking outages, downtime and lost productivity?

Damaged reputation, reduced profitability, missed delivers schedules, potential closure has often been the experience for many.

“Increasingly, recognising these risks, the Chemical sector is realising the benefit of a whole life approach, taking strategic investment decisions in its operations aimed at increased equipment and process data visibility and asset availability.

“Condition monitoring is playing a leading part in this approach, with further benefits to plant maintenance, safety and energy reduction resulting. “With a well implemented Condition Monitoring System, the states of components subject to wear, such as motors, gear units and bearings, and other critical machine parts can be continuously monitored.

“Up to 50% of preventive maintenance investments are not necessary and these avoidable expenses can increase up to 20%, the total maintenance costs, highlighting a clear case to change from preventive to predictive maintenance strategies. “ Siemens realises that some companies may struggle to fund such an approach at

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Sean McDonagh

a time of reducing subsidies. One example of the way Siemens is helping to get round the problem is its work with glass manufacturer Pilkington UK Ltd on ways to improve energy performance and cut costs at its UK sites.

The initiative is supported by funding from Siemens Financial Services and for Steve Barker, Siemens Head of Energy Efficiency and Environmental Care, such an approach benefits all involved.

He said: “To be effective and attractive this type of energy performance contract has to work for all concerned so that the risk is shared. By improving access to such funding to undertake the improvements in this way we all share the risk and all stand to benefit from the project‘s success in due course.”

Another big opportunity that Siemens sees in the move to self-sufficiency is symbiosis, the re-use of raw materials to generate income.

George Giles said: “Opportunities now exist to drive the potential for selfsufficient efw plants. Improvements in technology with proven solutions mean, for example, previously untapped industrial waste streams can now be effectively handled.

“An improvement in the development of thermal technology is a prime example of this. This brings into play a new community

of potential industrial customers from whom it will be possible to generate business. Currently, only 2% of industrial waste can be handled by energy from waste plants, and one only has to consider the vast quantities of waste generated by our industrial base to appreciate the scope for growth that exists here.

“Likewise, we are seeing genuine interest in proposals by large industrial users of energy who are also significant producers of waste. They are seeking to work with technology suppliers and energy from waste plants to help them deal with the energy and waste issues confronting their business.

“No-one believes that moving from a subsidy-based support system to one where investors can finance a fully functional self-sufficient efw plant will be easy. However, as the subsidy landscape becomes increasingly more complex and market opportunities continue to present themselves, it is clear that operators with a long-term operational vision, a belief in advanced technology and an innovative approach to dealing with challenging potential waste streams, can generate a powerful and self-sufficient business case.

“They can begin to exploit the tangible new financial opportunities that exist when it comes to dealing with the nation’s waste and turning into a vital energy source.”

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ecotoxchem.co.uk High-level expertise rooted in the chemical industry

Integrated view of regulation from R&D to lasting regulatory compliance Informative property prediction

Scientific excellence; higher business value

u T: (+44)(0)1227 470901 u F: (+44)(0)1227 765117

Robust science supporting commercial viability

u E: info@ecotoxchem.co.uk

Dedicated team of experienced chemists, toxicologists and ecotoxicologists

Peter Fisk Associates Ltd, Saxon House, John Roberts Business Park, Pean Hill, Whitstable, Kent CT5 3BJ UK

How to harmonise chemical design and development with regulatory acceptability HAZARD

What are the environmental hazards?

Mode of action may be important Key indicators • Design-in biodegradability and lack of hazard • Classification system • Substances of very high concern - SVHC and the EC Roadmap 2020

“Tell me everything about my substance before I have even made it!”

EXPOSURE AND RISK

“We must make an intelligent decision about development”

Are there exposures?

What is the risk?

Understanding exposure – environmental compartments - soil, water, air.

“Why is this necessary or important?”

Some typical scenarios hazards No hazards Non-classifiable hazards

+ +

Classifiable hazards

+

Severely hazardous - substances that will be of particular concern to the authorities

+

exposure No exposure Exposures that are minimal Exposures that can be limited Exposures that cannot be controlled at all

= = = =

outcome NO PROBLEM LIKELY COMMERCIAL ACCEPTABILITY SOME LIMITATIONS, BUT MAY STILL BE VIABLE A HARSH REALITY THAT MAY NOT BE MANAGEABLE

Research and development strategy for the current realities

“Let’s test for potential project stoppers”

hazards

exposure

outcome

Proportionate assessment of hazard throughout R&D process

Proportionate assessment of exposure and risk for the intended use, throughout R&D process

•Avoid huge expense on something unsaleable •Realistic outlay at each stage •The science is not able to predict all properties – desired or otherwise

How to do it!

Stage 1 Paper exercise Stage 2 Targeted low-outlay testing Stage 3 Move towards a regulatory data set Stage 4

hazards Prediction of properties can be very effective and show possible concerns Screens can be cheap: • In vitro tox • Acute ecotoxicity • Ready biodegradability

exposure Look at possible use pattern

outcome Can assess options

Quantify likely exposures using simple exposure models

Can assess a lead substance and set priorities

Essential ecotoxicology studies

Initial risk assessment

Make a decision to go for development

“Don’t inhibit my creativity”

“We saved a lot of time and money”

Move towards full commercialisation with confidence

PFA can help with all aspects of R&D assessment of acceptability including green chemistry and design.

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SHALE GAS

Shale gas: opportunities and threats for the North West chemical industry and beyond Hardly a day goes by when shale gas isn’t in the news for one reason or another, mostly with stories that focus on the environmental risks associated with extracting it that are articulated against a backdrop of protestors camped outside drilling sites.

And let’s be clear: there are risks. After all, it’s an industrial process. But those risks perhaps aren’t as significant as they are portrayed in the media. Meanwhile, the many opportunities that shale gas presents are overlooked.

To understand the opportunities and threats, first it’s necessary to put shale gas into some sort of perspective.

What is shale gas, where is it and how much of it is there?

Shale gas is just regular natural gas comprised mostly of methane - only, instead of being found in traditional sandstone and limestone reservoirs, it’s found in shale rock.

Geologists have known about it for decades. It is mostly found in the Central Belt in Scotland, the Bowland Basin (that stretches from beneath the Irish Sea, right across large swathes of North Cheshire and Lancashire then under the Pennines and all the way to the coast of North Yorkshire) and the Weald Basin beneath the Home Counties.

According to a study published in the summer of 2013 by the British Geological Survey (BGS) the Bowland Basin alone could contain 1,300 trillion cubic feet (1,300 tcf) of gas.

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How significant is that? Well, firstly, it’s important to recognise that not all of that might be recovered. However, industry estimates suggest that around 10% might be extracted, so perhaps as much as 130 tcf. To put that in perspective, the UKs annual gas demand is about 3 tcf which means there might be enough recoverable gas in the shale rock below Northern England to last over 40 years.

How is the gas obtained?

The gas-rich shale deposits in the Bowland Basin are typically encountered at depths of over a mile. And the shale tends to be very thick in places too.

Getting at it involves drilling deep vertical boreholes, before turning the drill and drilling out horizontally.

Then, because shale rock is porous yet largely impermeable and doesn’t like to give up its bounty all that easily, it is necessary to inject a mixture of mostly water, additives and sand at high pressure in a technique known as hydraulic fracturing - or ‘fracking’ as it has become known.

The injected fluid opens up tiny, preexisting fractures in the rock and the sand acts as a proppant, holding open the fractures and allowing the gas to escape to the surface when pressure is released.

What about the risks?

Most experts agree that the biggest environmental risks associated with shale gas extraction are to be found at the surface. These could include spills of the additives used in the hydraulic fracturing fluid, or a spill of wastewater, or the release of fugitive methane.

Whilst these are all very real risks, they’re manageable provided that shale gas explorers use recognised good practice and comply with the legislation that exists to protect us all.

Take wastewater management as an example. In the US, poor practice has been linked with spills, groundwater pollution and airborne emissions. There, the wastewater has often been stored in open pits dug in the ground which, if they leak, provide a direct route to nearby groundwater features.

• continued on page 6

SHALE GAS

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A drilling rig in action at the Cuadrilla Resources site in Becconsall (Courtesy of Remsol)

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SHALE GAS

During hydraulic fracturing, high pressure fluid is pumped deep underground (Courtesy of Cuadrilla Resources)

The airborne emissions appear to be mostly linked to the use of these impoundment ponds not just as temporary storage but also to evaporate the liquid portion to leave behind a solid that can eventually be removed and taken to landfill.

Such practices simply won’t be permitted in the UK where, instead, wastewater will be temporarily stored in aboveground steel tanks, that are provided with secondary spill containment or ‘bunding’ and that are subjected to regular inspections to check for leaks - just as you’d expect to find at a modern day chemical manufacturing facility.

Fugitive methane emissions are also unlikely to be a problem here - not least because regulations like the Dangerous Substances and Explosive Atmospheres Regulations (DSEAR) - again familiar to many chemicals installations - will apply, with operators forced to minimise the conditions that could lead to fire and explosion. We shouldn’t also forget that operators will want to capture every last molecule of methane so they can sell it to us.

The sub-surface risks of fluid and gas migration are controlled via construction

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of the wells themselves, which are built in accordance with strict standards set out in the Boreholes Sites and Operations Regulations and Offshore Installations, and Wells (Design and Construction) Regulations to ensure well integrity.

This sees the wells lined with at least three separate layers of steel casing, all cemented back to the surface, ensuring maximum protection for any near surface groundwater features. Monitoring before, during and after operations - conducted by companies like Ground-Gas Solutions of Manchester - will also provide shale gas drillers with an early warning system.

And lastly, hydraulic fracturing in Lancashire in April and May 2011, performed by Cuadrilla Resources, was linked to two minor seismic tremors. Since then, they’ve completed a 3D seismic survey of a large part of their licensed exploration area so they can now better plan their drilling and fracturing operations so as to avoid any faults that might be present. And the shale gas industry as a whole has signed-up to a traffic light system agreed with the Department of Energy and Climate Change (DECC) which will see hydraulic fracturing activity suspended if tremors above just 0.5 magnitude are detected.

Whilst none of these environmental risks should be downplayed, it is important that they’re kept in perspective. Britain has a long history of safely exploiting its hydrocarbon resources onshore and there’s no reason to believe shale gas will be any different.

Robust regulation One of the reasons onshore drilling has such a good record is because of the plethora of environmental laws that govern it.

Unfortunately, it hasn’t always been clear precisely what regulations apply or how.

For instance, I had cause to check with the Environment Agency about if and how the Environmental Permitting Regulations apply to the management of wastewater that picks up Naturally Occurring Radioactive Material (NORM) because the rules say the regulations only apply to waste arising in the “production” of oil and gas, whereas companies like Cuadrilla Resources are currently only exploring for natural gas in shale rock, and it was necessary to seek clarity on this matter.

This sort of ambiguity hasn’t helped either operators or the public to understand the legislation that governs onshore shale gas

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exploration, which is why we welcomed the publication by Government of the ‘Regulatory Road Map’ last year, which sets out much more clearly what rules exist and what they are intended to protect.

And what of the opportunities?

According to a recent study by Ernst & Young, a developing shale gas industry could be responsible for over 60,000 jobs at peak, with a supply chain worth over £30 billion.

Here in the North West, currently the centre of shale gas activity, there will be significant opportunities for local people to benefit from the jobs on offer and local companies will have the chance to be part of the supply chain.

My company, Remsol, has been working with Cuadrilla Resources since 2012 and is a shining example of their efforts to build a local supply chain. We have provided them with environmental consulting services to help them apply for the many permits they require, and we are also responsible for managing the wastewater generated in their hydraulic fracturing operations.

But we mustn’t be complacent: we can’t blithely assume these jobs and supply chain opportunities will come to North West businesses - we have to fight for them. If we don’t, there is a very real risk that they’ll go to people and firms elsewhere in the UK or even abroad.

The opportunities for the North West chemical sector in particular are quite clear: if, as predicted by the Institute of Directors last year, we need 4,000 wells nationally to extract 10% of our shale gas resources, that’s a lot of fracturing fluid additives that someone will need to supply.

More important still will be the availability of more natural gas as a feedstock for some of the building blocks of many chemicals we take for granted.

And whilst shale gas may not reduce gas prices substantially, large quantities of it in the UK energy mix - especially if continental Europe also starts to exploit its resources - could help to stave off price rises and therefore make energy more affordable for the region’s chemical manufacturers, better positioning them to compete on the global stage against economies with cheaper energy.

Overall, the opportunities appear to outweigh the risks. What we need to see now is more exploration so that operators can prove they can extract our shale gas resources safely and responsibly and that they can live up to their promises about jobs for local people and supply chain roles for local companies.

Deep vertical wells, with horizontal sections, are drilled into the shale rock at depths of around 1 mile or more (Courtesy of Remsol)

Steel and cement casing line the wells to protect groundwater (Courtesy of Cuadrilla Resources)

Shale gas is just regular natural gas - comprised mostly of methane - only, instead of being found in traditional sandstone and limestone reservoirs, it’s found in shale rock.

Notes about the author: Lee Petts is the founder and managing director of Remsol, a specialist waste and environmental services company focused on helping businesses to cut waste, recycle more and save money, whilst improving overall environmental performance and avoiding risk.

As well as working directly in the Lancashire supply chain supporting Cuadrilla Resources, Lee is also a panelist on the North West Energy Task Force, which is charged with understanding how the responsible extraction of natural gas from Lancashire’s shale can be used to create jobs, generate economic growth and boost local revenues.

He regularly speaks on the topic of shale gas and, in December 2013, was privileged to give evidence to a Parliamentary select committee inquiry into the economic potential of shale gas conducted by the House of Lords economic affairs committee.

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Can Shale Gas transform the economy?

The next 2-3 years will be critical for the shale gas industry in the UK, according to a talk by GDF Suez, given at ‘The Chemical Industry of Tomorrow’ event held at the Olympic Park by CIA and GDF Suez in May. The potential for shale gas to make a significant difference to the UK gas and feedstock supply is great with 1,300 Tcf estimated in the Bowland shale region alone and if successfully exploited could make the North West the shale capital of Europe.

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SHALE GAS

The political will to make shale a success appears to be there, with all three major parties reasonably aligned and tax incentives in place. This coupled with a long history of oil and gas exploration and the associated regulatory framework in place and current efforts to simplify the planning process make success more likely.

However important pressure groups are against exploitation of shale both on environmental grounds concerned with the fracking process and the more general point in that they believe the future should be based on renewable not fossil fuels. A large part of the population is still neutral and industry has considerable work to do the rebut some of the messages, not based on scientific fact, of the pressure groups.

Some technical challenges also remain.

Very little geological and down hole date is available, so it is hard to predict the full potential and the likely difficulties of extracting a high percentage of the gas available. The supply chain in the UK and Europe is also not well developed with a shortage of drilling rigs and fracking equipment likely in the short term. As in the chemical industry, skills shortages are also likely to have an impact on the rate of progress and there is a real opportunity for

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colleges and training organisations in the North West to start to develop the training courses needed.

In the next 2-3 years the industry is expected to focus on proving the potential by gathering information from seismic, and core data studies, carry out limited hydraulic fracturing (fracking) studies and test the productivity. It is expected that 10-15 wells will be drilled in this period.

If successful first production could come on stream in 2017, but significant amounts are not expected until 2020. The industry expects that around 10% of the gas in place will be technically and economically recoverable. When the industry will be mature, there could be around 100 production sites (also called well pads), each with 10 to 15 multilateral wells and a footprint of around 5 acres.

So what could the future look like? With offshore gas production likely to decline shale gas has an important role to play in filling the gap and helping improve security of supply. Will it have the same impact on prices as it has in the US? Unfortunately the answer is it is unlikely, production costs are going to be higher than the US as the gas is generally deeper and in more urban areas and this coupled

Bowland shale region

with the tax and climate change regime is likely to keep gas prices relatively high.

However the economic benefits in terms of jobs and at least helping negate future energy price rises is significant.

With offshore gas production likely to decline shale gas has an important role to play in filling the gap and helping improve security of supply.

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ORANMORE

Rehabilitation success for chemical plant chambers

High acidity is an ongoing and serious issue for chambers and tanking in the process chemical industry. It leads to degradation and corrosion, loss of stabilisation and ultimately the failure of the structure.

Therefore any system which can guarantee a permanent protection against this can bring enormous benefits. Whole life cost of the structure is minimised, disruption is kept to a minimum and ongoing repairs and costly maintenance are virtually eliminated.

It’s for this reason that Ultracoat is a key part of the rehabilitation system utilised by leading specialist Oranmore Environmental. With a single layer application and a chemical resistance from pH2-14, the Ultracoat system proved the perfect solution for the rehabilitation of 30 chambers at a process chemical plant in Northern England.

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The Ultracoat system is a Fernco Environmental product, and was used in conjunction with another of their ranges, Hyperflex. Hyperflex is a premixed grout used for prevention of infiltration, and its excellent expansive properties mean it is widely regarded as a leader in ground stabilisation. This was particularly vital after pH 3 liquids had washed out surrounding ground over time.

The surface was prepared, the ground stabilised using Hyperflex and the internal walls were rebuilt. After this took place, the surface of the chambers were cleaned and prepared, before the 100% solids epoxy Ultracoat system was spray applied using patented application equipment.

Tom McGrath of Oranmore commented; “Ultracoat is by far our most preferred system when rehabilitating structures such as this. It’s efficient to apply, contains no VOCs and is also a permanent solution.

The fact there’s no need for a primer coat also means we can do more for our client, more quickly.”

For more information on the Ultracoat system, please visit www.ultracoatsystem.com Or you can contact Tom McGrath of Oranmore Environmental on 0330 111 0007

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SPECIALISTS IN CHEMICAL INDUSTRY INFRASTRUCTURE REPAIR & MAINTENANCE • • • • • • • • •

Tank and Bund Cleaning and Repair Structural Rehabilitation Specialist Chemical Resistant Coatings Confined Spaces Concrete Repair Infiltration Engineering Pipe Lining and Repairs High Pressure Water Jetting/Waste Tankering Wet and Dry Grit Blasting

www.oranmore-esl.co.uk

E: info@oranmore-esl.co.uk T: 0330 111 0007