PLANT WEST May/June 2013 by Annex Business Media

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Volume 8, No. 02 >> Supplement, PLANT >> May/June 2013

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Manufacturing

WESTERN STYLE

An innovative way to fabricate

PM 40069240

NEW TECHNOLOGY SECTION

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HIGHLIGHTS Carbon taxes: The right way to go? Energy: Our future depends on it Setting asset performance standards BioteQ takes the waste out of wastewater Corrosion protection for electrical equipment

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Quality – Innovation – Trust

13-05-13 11:55 AM

Editorial

Al Gore’s reckless spewing

t’s a blessing that we have a former vice-president of the United States visiting Canada to set us all straight on the development of oil sands resources, which he condemned for the “reckless spewing of pollution into the Earth’s atmosphere as if it’s an open sewer” during an interview with the Globe and Mail. However, Al Gore’s remarks were less than helpful as Natural Resources Minister Joe Oliver travelled through Europe to tackle the EU’s new Fuel Quality Directive, which labels fuel derived from oil sands crude as dirtier than conventionally refined crude. Oliver argues that is not the case, and he’ll have a challenging time getting the Europeans to change their minds, even without Gore’s provocative remarks. Alberta’s oil sands have become a chief villain in the global climate change narrative. There is a growing hostile clamour coming from enviro-critics who are unimpressed with the notion that an energy hungry world reliant on non-renewable fossil fuels should make use of a massive resource within a stable jurisdiction. As Gore stated so elegantly to the Globe and Mail, “There’s no such thing as ethical oil. There’s only dirty oil and dirtier oil.” Yes, we all recognize that extracting and turning the glop that comes from the oil sands into fuel is more carbon intensive than conventional means – something like 12% to 22% more greenhouse gas emissions per barrel (depending on who is measuring). And sure, mining the bitumen isn’t pretty. It makes a mess of the landscape. But reckless spewing? We could point out that the industry’s R&D and new technology is dropping emissions levels, that energy producers are focusing on mitigating water use and they’re pledging to return the landscape to almost original condition – not that these efforts will resonate with critics, like Gore. Yet as an environmental prophet, he actually does have relevant things to say about climate change and the need to address this global environmental threat, but like many of the critics of the “tar sands” and the opponents to the Keystone XL pipeline, his efforts would be best applied to the dirty business going on in his own backyard. Neither the US nor Canada are particularly good examples of emissions stewardship. Both have earned Ds for their efforts in a field of 17 developed economies, according to the Conference Board of Canada’s How Canada Performs report card. But electricity generation is a major source of emissions for both countries, and based on that measure, Canada gets an A on renewable energy, compared to an American C. Electricity accounts for the biggest portion of US emissions at 33%. Seventy per cent of its electricity generation comes from burning fossil fuels. Of that, burning coal is good for 42%. Thirteen per cent of Canada’s emissions come from generating electricity, second to transportation at 24%. Low emitting power sources (such as nuclear, wind, solar and hydro) account for 78% of the power. Of that, 64% is from hydro generation. Both countries lag on emissions reductions. Canada is about halfway to a recalibrated commitment of 17% from 2005 levels, while the US brought its emissions down in 2011 by reducing the intensity of fuels used for electricity, notably coal, and significantly increasing the use of hydro. Good for the US. But it bears repeating that in the climate change sweepstakes, China is responsible for 23% of emissions, the US 19%, the EU 13% and Canada 2%. Of that 2%, the oil sands accounts for 7% of Canada’s total emissions and about 0.15% of global emissions. If Canada were to shut down the oil sands tomorrow and not extract or upgrade another drop of bitumen, there would be virtually no impact on global emissions. The United States, on the other hand, is still burning plenty of fossil fuels for electricity. Coal, scrubbed or not, is hardly clean. Oliver notes emissions from US coal-fired power plants are 40 times greater than those generated by the oil sands. So who is treating the atmosphere like an open sewer? Grandma would say that’s the pot calling the kettle black, Mr. Gore… Joe Terrett, Editor Comments? E-mail jterrett@plant.ca.

Vol. 8, No. 02, May/June 2013 A supplement to PLANT Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

COVER PHOTO: CHRIS BEAUCHAMP

Features

>> OPERATIONS 6

MANUFACTURING Western Manufacturing takes an innovative approach to fabrication by managing the project and partnering with subcontractors.

MAINTENANCE Raise the asset management performance bar with systems that further optimize efforts.

>> SUSTAINABILITY 8

WATER BioteQ takes the waste out of wastewater with its Sulf-IX technology, which solves sulphate scaling issues.

>> INDUSTRY 9

ENERGY Canadians need to better understand how responsible energy development will fuel prosperity.

10 CARBON TAX Alberta’s energy producers will take a hit to their bottom lines if the province’s plan is approved.

>> TECHNOLOGY

11 TECH TIPS How to protect electrical equipment used in industrial environments from corrosion. SUPPLY LINES News from suppliers and distributors. 12 PRODUCTS AND EQUIPMENT What’s new in industrial products and machinery.

Departments 4 Industry View Pulse 5 Careers 13 Events 14 Postscript

PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. Tel: 416-442-5600, Fax: 416-510-5140 80 Valleybrook Dr., Toronto, ON M3B 2S9 PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: privacyofficer@businessinformationgroup.ca. Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information contact us at 1-800-387-0273 ext. 3548. SUBSCRIPTION PRICE: Canada 1 year $35.95, 2 year $66.95, Outside Canada $72.95 per year, Single Copy Canada $12.00. Plant West is published 4 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. Contents of this

11 publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies. No responsibility for the accuracy of these performance claims can be assumed on the part of PLANT WEST or BIG Magazines LP. Contents copyright© 2013 BIG Magazines LP, may not be reprinted without permission. PLANT WEST receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT WEST, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund CPF for our publishing activities.

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Departments

>> Industry View

>> Pulse per cent

14 12 10 8 6 4 2 0

1997 90 99 00 01 02 03 04 05 06 07 08 09 10 11 2012

Alberta’s share of national manufacturing sales.

ALbErTA rEbouNDS Manufacturing sales in Alberta have recovered since the 2009 recession, according to a new report from Statistics Canada. The Ottawa-based federal agency said in 2012 sales of $74.8 billion were third among the provinces and accounted for 12.7% of national sales. BC followed with 6.5%. In 1997 Alberta and BC each accounted for about 8% in 1997. Ontario accounted for the most sales at 46%. During the recession, Alberta’s sales dropped 23.1%, but recovery was swift and by 2011 they exceeded a previous high set in 2008. Annual sales continued to rise last year by 5.6%. The top three industries were petroleum and coal products, chemical products and food. Food was the leader until 2002 when chemical products surpassed it and held the top spot through 2003 and 2004. Since 2005 petroleum and coal products has led sales. Petroleum and coal products has contributed the most to sales growth since 1997 – more than 300%, from $4.9 billion to $19.6 billion last year. Only machinery sales have kept pace, gaining about 300% with sales increasing from $2.3 billion to $9.1 billion. Other Alberta industries with significant growth since 1997 include fabricated metal products (213.6%), non-metallic mineral products (134.1%), chemical manufacturing (89.9%), and food manufacturing (74.6%). Computer and electronic products fell 67.6% from $2.1 billion in 1997 to $672 million in 2012.

FEbruAry SALES ADvANcE Manufacturing sales advanced 2.6% to $49.6 billion from January to February, the largest increase since July 2011. Gains from 14 of 21 industries came mostly from transportation equipment, petroleum and coal products (driven by a 6.5% rise in prices), food, and miscellaneous manufacturing. Sales of durable goods were up 3.7% to $25.1 billion. Nondurable goods sales rose 1.5% to $24.5 billion. In the West, sales increased 3.7% in Manitoba, 1.4% in Saskatchewan, 0.7% in Alberta and 0.3% in BC.

EmPLoymENT SLiPS 0.1% Although employment in Canada rose in February, Statistics Canada reports it declined by 0.1% or by 55,000 full time jobs in March. The unemployment rate rose 0.2% to 7.2%. Manufacturing saw a decline of 1.4% or 24,000 jobs. In the west, BC was down 0.6% or 15,000 jobs pushing unemployment to 7%. Alberta was down 11,000 jobs, which the Ottawa agency described as the first notable decline in two years. Unemployment was nudged up 0.3% to 4.8%. Saskatchewan experienced the strongest year-over-year growth at 4.6%. Unemployment was 3.9%, the lowest among all provinces. Manitoba’s employment rate dipped 0.3%.

Heartland pipeline project to cost $900m

Will transport 900,000 barrels of crude per day to the terminal CALGARY: TransCanada Corp. has secured long-term shipping agreements for a pipeline and facilities in Central Alberta that will have a combined cost of $900 million. The Calgary-based pipeline company will build, own and operate the proposed 200-kilometre pipeline, which will connect the Edmonton region to facilities in Hardisty, Alta. and the TC Terminal in the Heartland industrial area north of Edmonton. TransCanada anticipates transporting up to 900,000 barrels of crude oil a day to a terminal with storage capacity of up to 1.9 million barrels. Service is to begin during the second half of 2015. “With Alberta oil production projected to increase by almost three million barrels per day over the

Putting pipeline infrastructure into place.

next 15 years, it’s important to have the right infrastructure in place to move the resources safely and reliably to market at the right time,” said Alex Pourbaix, TransCanada’s

bri-chem acquiring uS specialty cement EDMONTON: Bri-Chem Corp. has entered into a letter of intent to acquire the assets and ongoing operations of an unnamed California specialty cement chemical blending and packaging company. Bri-Chem, an Edmonton-based manufacturer of oil and gas drilling fluids and steel pipe, will purchase land and building assets related to the company’s operation, which includes a transloading facility that provides a six-car rail spur for bulk purchasing and shipping of materials. Financial details were not released, but the transaction was to be completed by the end of May. The cement company, founded in 2001, generates approximately $7 million a year. Bri-Chem said it’s the only local source for sales of oil well related blended bulk materials such as specialty cement, commodity products and other chemicals to contractors operating predominantly in southern and central California within the Monterey Santos Shale. Bri-Chem identifies one of the cement company’s strategic advantages as having the bulk capacity for materials and providing custom blending, bagging, and transportation for all of its products. A fleet of 10 tractors and 28 pneumatic truck trailers deliver bulk custom-blended product directly to the customer’s well site.

meeting the 2011 tax code: $25b It costs SMEs more as a share of revenue VANCOUVER: Canadians paid between $19.2- billion and $24.8-billion to prepare, file and remit payment for personal income taxes, property taxes, and business taxes in 2011, according to a Fraser Institute report. The Compliance and Administrative Costs of Taxation in Canada, found that the dollar cost of comply-

ing with business taxes is lower for small- and medium-sized businesses, but as a share of revenues, it’s actually higher than for larger businesses. “By adding up taxpayers’ personal time and effort to file their returns and all expenses associated with accounting and professional fees and appeals, we find a high cost of up to

ExPorTS TrEND uP Export volumes were up 5.1% in March, growing to $40.5 billion, part of an upward trend since last July. Main contributors were energy products, and metal and non-metallic mineral products. Energy products increased 3.9% to $9.1 billion, mainly because of a 24.8% increase in volumes of natural gas. Contributing to the rise were refined petroleum energy products and other energy products. Imports rose for a third consecutive month to reach $40.4 billion. The tax system can act as a barrier to competitiveness and economic growth.

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PHOTO: THINKSTOCK

president of energy and oil pipelines. “These projects will help link Canadian crude oil resources in northern Alberta to markets in Eastern Canada and the US.”

Empire’s new ride WiNNiPEG: Empire Industries Ltd.’s Dynamic Structures business unit has been awarded a $390 million contract to manufacture a major amusement ride for an unidentified amusement park owner in the US. The attraction will be completed over the next two years. Dynamic Structures provides proprietary turnkey attraction products such as flying theatres, dark rides, automatic guided vehicle systems (AGVs), roller coasters and other attractions. Empire Industries, based in Winnipeg, also fabricates steel for the industrial, commercial and infrastructure markets in Western Canada.

$25-billion, or 1.4% of GDP, for tax compliance in 2011,” says Fraser Institute executive vice-president Jason Clemens. In the report’s foreword, Anthony Ariganello, president and CEO of the Certified General Accountants Association of Canada, warns of the economic costs incurred by overly burdensome tax codes. “Canada’s tax system can act as a barrier to business, investment, competitiveness, and economic growth,” Ariganello wrote in the report. He says tax simplification would provide “countless economic benefits,” including lower costs for both tax compliance and administration, which translates into a likely boost to the Canadian economy. The Fraser Institute, a think tank with offices across Canada, also estimates the cost of tax administration in 2011 – collecting taxes, maintaining records and managing appeals at all government levels – to be $6.6-billion. Visit www.fraserinstitute.org. CanadianManufacturing.com

May/June 2013

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Industry View << Departments

Foreign workers critical to bridging gaps: cmE Reforms should make worker-company connections faster OTTAWA: Manufacturers across the country continue to rely primarily on Canadian talent to meet changing labour demands; however, Canadian Manufacturers & Exporters (CME) says temporary foreign workers remain a vital part of national employment and economic growth strategies. The national organization representing manufacturers wants the federal government to be cautious concerning changes to the current model. It says half of all companies are experiencing labour or skills shortages, and those numbers are expected to rise “dramatically” in every occupational segment over the next five years. More than one in three companies say these challenges are already constraining business growth. With the Government of Canada now proposing changes to the temporary foreign workers system, CME president and CEO Jayson Myers stresses the importance of reforms establishing mechanisms that increase the speed and flexibility of connecting companies with the workers they need, while providing pathways to citizenship for current TFWs and ensuring transparency in the new framework. “Let’s be clear: Canadian industry wants to hire Canadians first – not only

>> Careers

to be socially responsible, but because hiring foreign workers is much more expensive and a much more complicated process,” says Myers. “The federal TFW program is used by manufacturers most times because they have no other option, often operating in regions where Canadians won’t move and there are no local workers with the necessary skill requirements.” He says temporary workers are used because current government programs to supply labour are inadequate, including both the education and immigration systems. “Any transition from the model we have now must be done to improve Canada’s global competitiveness, and avoid penalizing the companies that are following the rules, creating jobs, and driving our economy.”

Half of all companies are experiencing labour or skills shortages.

PHOTO: THINKSTOCK

Hygienic Design (HD) Enclosures Specifically Designed for Food and Beverage Zero Tolerance for Bacteria!

Linda Cleroux Schneider Electric Canada has appointed Linda cleroux CFO. She comes to the energy management company based in Mississauga, Ont. from Newalta, a Calgary-based waste management and environmental services company. She’ll be responsible for financial planning, forecasting, investment analysis, performance advisement, operational excellence and risk management. Dave Johnson has joined Arctic Glacier Holdings Inc., a Winnipeg-based manufacturer of packaged ice, as vice-president of sales. Previously he was senior vicepresident of business development at Crossmark Canada, a sales and marketing company based in Mississauga, Ont. CEO Kevin clarke is stepping down from Catalyst Paper Corp., a pulp and paper company based in Richmond, BC. His departure follows completion of the company’s courtsupervised restructuring. Catalyst Paper owns three mills in BC and manufactures printing papers, newsprint and pulp. TriOil Resources Ltd., a Calgary-based energy developer, has appointed Glen roane a director of its board, which will oversee the company’s strategic alternatives process. Roane is a corporate director and currently serves on a number of boards. He is also a former member of the Alberta Securities Commission.

www.plant.ca

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PLANT 5

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Operations

>> Manufacturing

The

WESTERN WAY

A DIFFERENT APPROACH TO FABRICATION FOR THE OILPATCH Western takes care of the business end and provides raw materials with designs while subcontractor partners handle the manufacturing. BY NORDAHL FLAKSTAD

n 2012, barely four years after start-up, Western Manufacturing Ltd. tallied revenues of $65 million. More remarkably, this Grande Prairie, Alta. fabrication firm is led by 26-year-old CEO and president Lonny Thiessen. He’s not some precocious MBA grad with an Ivy League background brought in to whip the company into shape. In fact, Thiessen is a journeyman welder who, with his wife Nandry, formed Western in 2008. He saw the excess fabrication capacity at that time as a potential launch pad for a different approach, which turned on its head the traditional business model for building tanks and related oilpatch equipment. Although his father had run Peaceland Fabricating for a couple of decades in Hythe, Alta., about 50 kilometres northwest of Grande Prairie, that business didn’t fall into Lonny’s lap. Still, growing up in the industry, he was pretty much welded at the hip to fabrication and

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was barely through high school when he became assistant plant manager. When his father sold the firm in 2005 and moved overseas, the sale was covered by a non-compete clause. So, when Lonny incorporated his own firm – originally titled WestFab – in 2008, he started “from scratch.” It didn’t seem a propitious time for anyone, let alone an enthusiastic entrepreneur in his early twenties, to start a business. The global financial crisis was weighing down on an until-then-buoyant Alberta oilpatch. Smaller tank and fabrication shops in the Peace River Country, straddling northwest Alberta and northeast BC, had short order lists. Downscaling and closures suggested the region didn’t require “more” fabrication shops; it needed innovation to keep existing ones alive. It has been fairly common for major oilfield-supply manufacturers to outsource components. Usually, it was left to the subcontractor to decide where to source supplies and raw materials; to design and produce ele-

ments, and apply quality controls in making particular components; and then ship these parts to a principal partner for finishing, final assembly and distribution. In contrast, Thiessen decided to supply his subcontractors with raw materials – such as structural-steel shapes, beams, flatbars, structural pipe and plate – and provide the required design. Then, to a considerable extent, he would leave the manufacturing in the hands of the subcontractors. This left Western mostly focusing on overseeing marketing and business development, sourcing (mainly from Canadian suppliers); supplychain management; quality assurance; and shipping of finished products. “We’re taking existing capacity rather than creating big new facilities to support us,” Thiessen emphasizes. “We basically pay the partners for the labour contract of building our tanks with our steel. This really reduces their cash outlay.” If Western’s quality control people accept the work, partners are paid in net 15 days. “It solves their cash-flow problems. If they don’t produce quality to our standards, they have to do the rework. It ties them into a market that they, given their size, wouldn’t be able to go after.”

May/June 2013

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>> Maintenance Western’s 26-year-old president and CEO Lonny Thiessen overseeing a $65 million (2012) fabrication business in Grand Prairie, Alta. PHOTO: CHRIS BEAUCHAMP

and related equipment are manufactured through the subcontracted partners’ facilities. But in late 2011, Western deviated somewhat from this process by leasing 55,000 square feet of existing fabrication space in Grande Prairie’s Mcrae Industrial Park. Thiessen says they wanted to produce larger, shopbuilt tanks for the industry. Generally contractor partners couldn’t build anything larger than 400-barrel tank. The new facility allowed Western to build up to a 3,000-barrel, shop-built tank. An overhead crane moves the 24.5-foot diameter and 45-foot tall units. Although the leasee, Western follows its operating principles by handing off to a subcontractor who does the work – typically blasting, painting and valves attachment. Western’s own payroll remains largely limited to project managers and quality-control staff. “Even today,” says Thiessen, “we only have about 35 to 40 (direct) employees.”

Partnering with subcontractors

It took Thiessen a year and a half to really get things going. Initially he stayed afloat with cash flow from a small, separate business in Hythe that produced grainstorage and handling equipment, and fertilizer tanks. That company has been sold but its 25,000 square foot Hythe shop now has become one of Western’s subcontracting sites. Having channelled time and effort into fine-tuning a concept rather than investing heavily in capital equipment and inventory, a slow start wasn’t a significant financial drain for Thiessen or his company. The first WestFab (since renamed Western Manufacturing) order, worth $27,000, came in late 2009. “The industry finally came roaring back in 2010. We were positioned to fill some of the hole that had been left. I would attribute a lot of rapid growth to that fact,” says Thiessen. Western registered revenues of nearly $6 million in 2010. In 2011, they rose more than fivefold to $32 million, which included sales of tanks to: rental firms supporting oilwell drilling, fracing and completion; producers storing oil or water at production sites; and firms with mid-stream waste disposal and processing. The portable frac pond is another popular product. It involves a number of arced steel panels that piece together onsite to create a PCV-lined, up to 6,500 cubicmetre reservoir, 160 feet across and 12 feet tall. Most of the tanks (including API 650 and API 12-F)

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Through approximately 15 partner firms, Western provides employment to about 250, but avoids what Thiessen calls “the typical bureaucratic multi-level managerial structure.” Having a series of partners, each with ownership stakes, adds further entrepreneurial momentum to the production process. Western intends to rely mainly on the subcontractor model and minimize direct hires. The company was recently certified to build pressure piping and soon will have pressure-vessel certification. As it takes on such specialized manufacturing – often requiring site-specific licensing – Thiessen anticipates some added direct hiring. The Grande Prairie location, relatively remote from suppliers, might be considered a drawback. However, Western is well-positioned as the Peace River and adjacent regions focus on production and exploration – notably for heavy oil on the Alberta side and major shale gas plays such as the Montney in BC. Furthermore, Thiessen stresses: “It’s a lot easier to ship in a big load of flat-plate than after it’s made into a large tank body. In our local markets we’re actually more competitive than [the companies] that might be based in, say, Edmonton or Calgary.” Compared to 2011, Western’s sales doubled to $65 million in 2012, but the “bitumen bubble” and the challenges of delivering Alberta oil to market have slowed sales somewhat. Thiessen almost welcomes the reprieve. “We realized that we grew too fast and we also outgrew our infrastructure. We’re really focusing now in the first six months of 2013 not on growing revenue but on stabilizing our core business and getting better at what we’re doing so we’re sustainable.” Toward those ends, Western has upgraded computer systems and added a 6,000 square-foot office building in Hythe. Quality control remains key: Western recently obtained ISO 9001 certification and ISO 14001 standing. Ensuring subcontractors adhere to those standards is critical to maintaining and expanding the customer base. Once comfortable with the current consolidation, Thiessen foresees expanding product lines. The company already has sold to Venezuela and Kazakhstan and sales to the Ukraine are pending. “In the next five years, I would like to see us build to $150 million in revenue – with $100 million of that being globally diversified. I think we can do well in international markets.” At age 26, time and opportunity appear to be on Lonny Thiessen’s side. Nordahl Flakstad is an Edmonton-based freelance writer. Contact him at nflakstad@shaw.ca.

Asset management

Raising the performance bar BY STEVE GAHBAUER

anufacturers see the need to improve the performance of physical assets and reduce the cost of maintaining them, but it’s no longer enough to simply cut maintenance costs. Now they’re looking at physical asset management systems to further optimization efforts. These standards will help you achieve strategic goals, but realize they define good, not best practices. PAS 55. Developed by the Institute of Asset Management, PAS 55-1:2008 mandates proactive risk resolution and is well on its way to becoming an ISO standard. By collecting and analyzing all current defects, the system shows potential risks and suggests actions to mitigate them before they become serious. ISO 55000. This more recent standard for asset management was discussed by D’Arcy Wilson at the MainTrain conference in Toronto last November. Wilson, a reliability consultant and vice-president for delivery services at the Asset Performance Group (with offices in Burlington, Ont. and Calgary) stresses that to make ISO 55000 work, look for opportunities for improvement, then find the processes required to optimally manage assets. What are your plant’s asset management policies, objectives and strategies? Define who is accountable. ISO 50001. Released in June 2011, this International Energy Management Standard changes plant thinking about energy. It outlines a coherent path to treating energy consumption not as an overhead, but as a controllable business input by incorporating energy awareness into daily operations. 3M Canada’s experience with the third-party certification (Platinum level) of ISO 50001 at its Brockville, Ont. tape manufacturing plant illustrates the benefits of deploying the standard. The plant, first in the world to achieve certification (in June 2012), embedded energy management deeply into its culture. “The ISO 50001 energy management systems standard drives results directly to the bottom line,” says Andrew Hejnar, 3M Canada’s energy manager in Brockville.

Checking out tape fresh off the line.

PHOTO: 3M

The plant employs 170 people and produces products ranging from common bundling and holding tapes to high temperature, fine-line automotive masking tapes. Energy consumption costs represent about 10% of total operating costs. The goal was to reduce energy intensity by 3% annually. The Brockville facility had surpassed this target with 15.2% energy intensity savings between 2007 and 2010, and is well on its way to exceed it again, having already achieved a 7% improvement relative to the 2010 baseline. The energy management team implemented several measures that contributed to these improvements, including lighting retrofits, oven optimization, chilled water system improvements, compressor air leak reduction, HVAC heat recovery, make-up air optimization, non-production shutdown procedures, and installation of sub-metering. ISO 50001 makes energy visible at the plant and Hejnar says certification leverages other standards, including ISO 9001 and ISO 14001. Because it’s flexible and scalable, ISO 50001 allows plants to establish their own performance indicators. The US Department of Energy says the ISO 50001 standard could influence up to 60% of the world’s energy use. In addition to saving on operational costs, early adopters can also look forward to a competitive advantage. Steve Gahbauer is an engineer and Toronto-based freelance writer, and a regular contributing editor.

Comments? E-mail jterrett@plant.ca.

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Sustainability

>> Water

WasTe in this wastewater BiOteQ sOlVes sulPhate sCalinG issues sulf-iX was designed for the mining sector, but the Vancouver clean tech company is targeting other industries. By matt POWell, assistant editOr

ater is big business these days, and the riches aren’t limited to those companies that produce the type bottled for human consumption. It’s the life breath of industrial sites everywhere, especially those that extract resources from the ground. In fact, water infrastructure spending is expected to exceed $13.6 billion by 2014, according to a 2012 report by UK-based industry research firm Global Water Intelligence. These are notoriously dirty industries. Chemically enhanced treatment solutions are necessary. But governing bodies around the world are tightening environmental regulations. That’s where BioteQ Environmental Technologies Inc. comes into the picture. The Vancouver-based clean technology company, which employs a team of 78 worldwide, including 30 at two Lower Mainland facilities, develops industrial wastewater treatments for the mining and energy sectors, and is aiming for a slice of the multi-billion water infrastructure pie. Its efforts are paying off. The company’s revenues ballooned by 27% to $9.4 million last year, thanks in part to the introduction of its Sulf-IX ion exchange technology, which removes sulphate and calcium from wastewater treatment plants in the mining sector. BioteQ claims its technology recovers up to 99% of feed water for re-use, and compared to alternate processes such as membranes, cuts life-cycle costs for water treatment because it lowers capital and energy costs, energy consumption

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and reduces a facility’s carbon footprint. “Mining companies are looking to treat wastewater to a higher standard, an objective driven partly by regulation, but also as a cost relief tool to cut water costs,” says David Kratochvil, BioteQ’s president and chief technology officer. An increased reliance on low-grade ores requires more water per tonne of refined product. “When you think about who’s consuming the most water, its industrial. Those industries include mining and power generation, and most mineral processes depend on water, so our opportunities are significant.” Sulf-IX was initially developed for the mining industry to remove calcium hardness and sulphate from lime plant discharge, and to comply with tighter sulphate regulations. “Until recently, regulators were confident lime addition was enough to clean up the water in mining operations – it worked fairly well,” says Kratochvil. “But lime addition doesn’t remove sulphate, which can cause major headaches.” Metals and the associated acidity in wastewater have typically been removed by precipitation and neutralization by adding lime, normally as calcium hydrox-

ide. A reaction with lime removes metals as hydroxides and also causes the removal of sulphate as gypsum dihydrate. But the efﬂuent from a lime plant will always contain soluble sulphate due to the solubility of gypsum. Consequently, lime plants in many jurisdictions can’t produce efﬂuents with a sulphate concentration low enough to meet current regulated values. Most metals are extracted from ore bodies containing minerals that contain sulphur atoms that oxidize to sulphate during the metal extraction process, or due to natural oxidation processes in the waste rock and tailings. “Sulf-IX gives us the capacity to selectively remove hardness and sulphate, and clean the water up to the point that it’s reusable without the possibility of scaling,” says Kratochvil.

Lower sulphate limits Sulphate is a form of salt that’s found in a range of industrial activities, including lime plant efﬂuent, metallurgical process streams, refinery wastewaters, shale gas frac water, cooling tower blow-down and make-up water, ﬂue gas desulphurization blow-down, ash pond water, steel manufacturing wastewater and landfill

Columns house ﬂuidized beds where the ion exchanges process takes place.

Top: BioteQ’s Sulf-IX demonstration plant in Arizona was commissioned in the summer of 2012. Above: Clariﬁers thicken and precipitate gypsum during resin regeneration. PHOTOS: BIOTEQ

leachates. Regulators are pushing for increasingly stringent sulphate limits. For example, the state of Minnesota has proposed sulphate limits as low as 10 parts per million (ppm), which is several orders of magnitude below efﬂuent found in a lime plant, according to a SulfIX research report. Sulphate is not toxic except at high levels, but it can cause taste and odour problems in drinking water, affect agriculture and cause scaling in industrial processes where water re-use is necessary. “When you’re not addressing a sulphate issue, you’ll have water that’s incredibly hard to treat because of the high concentrations,” says Kratochvil. Sulf-IX uses cation exchange resin to remove calcium and magnesium; anion exchange resins remove sulphate. They’re regenerated using low-cost reagents. Feed water passes through a series of cationic columns to load calcium onto the cationic resin. Water then passes through anionic columns to load sulphate onto the anionic resin. The resins, which have a finite loading capacity, must be re-generated once they’re fully loaded. Sulphuric acid is

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energy << Industry used to regenerate cationic resin, while lime is used to regenerate the anionic resin. Both form a resalable solid gypsum by-product that’s separated from spent regenerant solution in a clarifier. Sulphuric acid is added to the refreshed regenerant, while the solution is recycled for resin generation in subsequent resin cycles. In the right application the cationic and anionic stages operate independently. The cationic stage can be used as a stand-alone water softening system for the removal of calcium, while the anionic stage treats a stream of dilute waste sulphuric acid. BioteQ says the gypsum product is a pure, non-toxic, non-hazardous solid product that could be used as a building product in-fill and as a fertilizer ingredient. “The gypsum by-product is actually cheaper to get rid of because it doesn’t require the additional treatment or special handling that liquid brine and other environmentally harmful waste products would need,” says Kratochvil. Sulf-IX also has applications in power generation. It can be used as a cooling media in blow-down scenarios. Traditionally, about 60% of a plant’s energy and fuel aren’t turned into power. Instead it becomes heat that must be dissipated with water. “After that water is heated, it has high levels of sulphate and calcium, which makes it hard to re-use. Sulf-IX addresses those issues.” In April, BioteQ sold its stake in a mobile Sulf-IXTM pilot plant to strategic partner Newalta Corp. for $500,000. Newalta, an industrial waste management and environmental services firm based in Calgary will tour the pilot around industrial sites for on-site field testing, specifically in the mining sector. The partnership may also allow BioteQ to see how Sulf-IX performs in oil and gas operations, where Newalta does most of its work. “Newalta is looking to us to provide them with a tool to enter new markets, such as mining,” says Kratochvil. The company, which was founded in 1998 as Biomet Mining, now holds contracts with mining companies, utility operators and regulators to build and operate industrial water treatment plants in Canada, the US, Mexico, Australia and China that handle more than 24,000 cubic metres per day. Because of BioteQ’s small size, it’s able to handle custom projects that often carry higher profit margins. “You’ve got giants like General Electric and Siemens that are the commoditizers; they’re all about volume,” he says. “They have the technology, but they’re focused on membrane technology, and about 95% of that market is focused on desalination.” That leaves only 5% of the total membrane market for customized industrial type treatments. And as sulphate regulations for industrial sites tighten, that’s where BioteQ intends to dominate.

No apologies Our future and the Oil sands Canadians need to better understand how responsible energy development will fuel the country’s prosperity. By BruCe Graham

t its core, Canada is an export nation. Our largest export is oil and gas and we’re lucky to have the third largest oil reserves in the world – 97% of them located in the oil sands in northern alberta. We’ve gained the skills to exploit these reserves in an environmentally responsible manner and to export them primarily via pipelines using innovative technology that is subject to tough environmental regulation. during the next 25 years, the oil sands are expected to contribute over $2.1 trillion to the Canadian economy – about $84 billion a year. that money goes to all parts of Canada creating jobs and fuelling industry. Over that same period, the oil sands are expected to contribute about $311 billion in federal taxes to help pay for Canada’s health, education and social programs. and new oil sands investments are predicted to grow Canada’s oil sands-related jobs from 75,000 in 2010 to 905,000 in 2035 – creating 126,000 jobs in provinces other than alberta. the energy sector remains the largest employer of aboriginal people, and in 2010 purchased about $1.3 billion in goods and services from aboriginal-owned businesses. so why, given the enormous importance of this industry, does the energy sector need to apologize? Canada has some of the toughest environmental and human rights laws and regulations. Oil sands greenhouse gas emissions account for 1/600th of the world’s carbon emissions and, through the ingenuity of Canadians, those emissions have been declining since 1990, by 26%. Canada is also developing world-leading carbon capture and storage projects. in fact, a Calgary-based company is among the finalists in the Virgin earth Challenge for carbon negative technology. alberta’s oil sands and Canada’s extensive pipeline network are highly regulated and closely monitored. new proposed pipelines such as northern Gateway will be among the most advanced and safest pipelines in the world, which will include sophisticated computerized monitoring systems, aerial patrols, routine inspections and detailed education outreach to local landowners and communities. unfortunately many Canadians simply don’t understand how important the oil sands and the pipeline networks that transport this oil are to the nation. as the university of Calgary’s Jeansebastien rioux notes, Canada is in danger of having a general population that’s divorced from the process of wealth creation from the responsible development of renewable and non-renewable resources. they account directly for more than 15% of GdP, and about 20% if the purchase of goods and services such as construction, machinery, professional services and transportation are included. Canadians need to realize the importance of diversifying our energy market beyond the us. Canada loses $50 million a day or $17 billion a year because the us demands a discount on the international market price. if Canadian oil could reach tidewater via a pipeline system such as the northern Gateway to the West Coast, we could export to other nations – China being one – and eliminate this discount, meaning more

Alberta’s oil sands and Canada’s extensive pipeline network are closely monitored. PHOTO: THINKSTOCK money in provincial and federal coffers, and more jobs. similarly moving product east via transCanada’s converted gas pipeline to Quebec and new Brunswick provides additional opportunities for export. Building and operating pipelines can be done in a safe and environmentally sound manner. the focus must now be on doing a better job of educating Canadians on the importance of this natural resource. Bruce Graham is the president and CEO of Calgary Economic Development. This column is distributed by Troy Media in Calgary. Visit www. troymedia.com.

Comments? E-mail mpowell@plant.ca.

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Industry

>> Carbon Tax

The price of

CARBON The 12/15 plan won’t cut oil sands greenhouse gas emissions enough to meet a 2020 Copenhagen Accord target but companies aren’t liking the proposed 40/40 formula.

ALBERTA’S TAX IS GOING UP, BUTcarbon HOWpricing* HIGH? Comparing in Alberta and B.C.

decides, companies will be paying more, because the current plan won’t cut emissions enough to meet the 17% intensity reduction Canada agreed to in the 2009 Copenhagen Accord. Industry officials say 40/40 will impede the Maximum amount sector’s competitiveness by boosting per barrel 100% of emissions a production costs. company pays for “There’s little to no benefit to the imposition of 40% carbon levies,” says Kenneth Green, senior direcBY MATT POWELL, ASSISTANT EDITOR 12% tor of energy and natural research at Calgary’s Fraser Institute. “Canada is responsible for 2% lberta wants to satisfy its promise to cut Reductions Reductions Reductions Options for of global greenhouse gas emissions, with the oil greenhouse gas emissions (GHG) from oil Offsets Offsets meeting targets sands responsible for about...0.15% of global emissands production by 50 megatonnes as of Tech fund Tech fund Carbon tax sions. Eliminating that entirely would have virtu2020, but industry players don’t like a proposed ally no measurable effect on the global climate.” 40/40 solution that would require them to improve Maximum price $ $ $ 15 However, Simon Dyer, policy director at the intensity per barrel of oil by 40% (from the curper tonne Pembina Institute, says the province is on the right rent 12%) or pay a $40 per tonne tax if limits are track with a 40% reduction, but argues the $40 per exceeded. Average cost tonne penalty is too low. This formula, presented by Environment Minister (per tonne) to $ 80 $ $ . companies to meet “The price on carbon needs to be in excess of $100 Diana McQueen in late March, would achieve a 61 emissions target per tonne to meet obligations Canada agreed to in million tonne GHG emission reduction by 2020, but *Note: this graphic only represents industrial emissions that come from burning fossil fuels. the Copenhagen Accord. We agree to those numbers, Premier Alison Redford is not committing to it yet. but a $40 penalty won’t get us there,” he says. “40/40 isn’t a number that we’ve in any way landed Before any decision is made, Alberta has to gauge the impact on producers and the on or proposed,” Redford recently told Macleans. “I wouldn’t characterize anything as a manufacturers that make their equipment, says Nancy Coulas, director of energy and plan.” environment policy at Canadian Manufacturers & Exporters (CME). Still, it’s raising the temperature in boardrooms, and whatever Redford’s government “It’s going to be difficult to go back on a number like 40/40 now,” she says. “It’s not a number the industry side in Alberta is happy with at all.” Coulas, who was part of a closed doors meeting with the Canadian Association of Petroleum Producers (CAPP) in late April, says the wheels are in motion for an economic analysis examining the impact of the 40/40 plan that the Alberta government has commissioned from an unnamed consultancy. “I suspect that analysis is going to produce some nasty results that will help the Alberta government go back on that number,” she says. GRAPHIC: STEVEN CRETNEY, PEMBINA INSTITUTE

Alberta’s current approach

Alberta's 40/40 proposal

B.C.’s current approach

Possible scenario The final decision will come down to finances. Alberta’s currently charges carbon tax charges large emitters $15 per tonne of carbon produced over the province’s 12% intensity-reduction target. Alberta uses some of the money to invest in green-technology projects through the provincially managed Climate Change and Emissions Management Corp. (CCEMC). “Obviously the preference is not that the companies pay into the fund, the preference is that [they] invest in on-site emissions reduction technologies,” says Dyer. “But the model for a tech fund as a compliance option is a good one.” Initial calculations in a report by First Energy Capital Corp. suggest the 40/40 target would cost some oil sands producers roughly $0.60 per barrel after tax. Pembina, a Calgary-based environmental issues think tank, estimates the cost of compliance for a typical oil sands project would be less than $0.75 per barrel. The 40/40 reduction scenario would increase the carbon taxes for a SAGD project with a steam-oil ratio (SOR) of three by approximately $0.80 per barrel compared to the existing carbon tax. But the First Energy report says half the after-tax netback would likely only change by approximately $0.60 cents per barrel. Such a change would reduce the internal rate of return of an undeveloped oil sands project by approximately 0.3%. “If you factor that Alberta has a $15 per tonne levy that only applies on 12% of emissions, the average cost of compliance is $1.80 per tonne. BC’s carbon tax on 100% of emissions is $30 per tonne,” explains Dyer. “The 40/40 proposal is only half the compliance cost at $16 per tonne compared to BC, where the oil and gas economy has been robust.” The province would get between $450 million and $1.5 billion in extra cash by 2020. The current levy has collected $312 million, more than $180 million of which has been invested in 49 green-technology projects through the CCEMC. Those projects are supposed to reduce carbon emissions by 7 million tonnes over 10 years. Pembina likes a $100 levy plus an annual $10 per tonne increase after the plan goes into effect in 2014. “Producers need a strong and predictable price signal to encourage them to invest in technologies that are going to improve their emissions performance,” says Dyer. Ultimately, the Alberta government will have the final say, but whatever the decision, it’s unlikely to please everybody. Comments? E-mail mpowell@plant.ca.

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Tech Tips << Technology

>> Supply Lines $3.4M MILITARY CONTRACT A Winnipeg clothing manufacturer has been awarded a $3.4 million contract to provide 36,500 hot weather hybrid shirts for the Canadian Armed Forces. The contract requires Peerless Garments Ltd. to use Canadian-made textiles and manufacture the shirts in Canada. The contract will help create 10 jobs and maintain another 20 in Winnipeg. The deal includes 300 shirts in special sizes as required and an option for 50,000 additional shirts over a three-year period.

BORDEN TO REP LIND

Corrosives such as hydrogen sulphide and CO2 occur in oil and gas fields.

PHOTO:THINKSTOCK

CORROSION never SLEEPS

MORE WESTERN EXPOSURE

HOW TO PROTECT ELECTRICAL EQUIPMENT

he World Corrosion Organization estimates the annual cost of corrosion tops $2.2 trillion – more than 3% of global GDP. It takes many forms. Take offshore oil and gas operations: equipment is under constant exposure to seawater and salt spray, two highly corrosive substances. Corrosives such as hydrogen sulphide and carbon dioxide also occur naturally in oil and gas fields and there are others, including chlorine, bromine, hydrochloric acid and ammonia, which affect a range of industries. Protecting equipment limits downtime, the need for excess labour and the replacement of failed parts. Choosing the right materials and finishes is key. Appleton, a manufacturer of electrical products based in Rosemont, Ill., offers four ways to protect electrical equipment: Select materials according to their galvanic properties. Metals and alloys have different electrode potentials. When two metals are electrically connected in the presence of an electrolyte such as seawater, the more active metal will become anodic. This results

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in a loss of electrons, which increases the oxidation state in a process called galvanic corrosion. The galvanic series ranks metals from noble to active, and is based on the strength of ion bonding at the surface. A more noble metal such as stainless steel will resist corrosion better than cast iron, a more active metal. On the other hand, a more active metal used as a sacrificial anode attracts corrosion to protect the more noble metal from attack. Use protective coatings. Various finishes help isolate metallic surfaces from corrosive environments. Ordinary paint applied to steel prevents rust, but there are many alternatives including baked enamel, epoxy powder coat and PVC coating. The zinc surface on galvanized steel serves two purposes: as a protective coating and, if damaged, as a sacrificial anode that will corrode instead of the exposed steel. Take advantage of passivation. Certain metals form a surface layer of metal oxide a few molecules thick in a process known as passivation, which provides excellent protection even in

Lind Equipment has appointed the Borden Agencies as its electrical sales agent in Alberta. The Markham, Ont.-based company manufactures static grounding, hazardous location and industrial work lighting, portable power, and GFCI products. Sales reps will be working from Calgary and Edmonton.

highly corrosive environments. This occurs naturally, but the process is also enhanced through chemical treatments. The treated layer is tightly bound to the surface, preventing any further penetration of oxygen or corrosive chemicals. Examples are aluminum, which forms layers of aluminum oxide, and stainless steel, which forms chrominum oxide. If the surface is damaged, the passivated layer normally re-forms quickly. Choose nonmetallic components. Manufacturers are offering nonmetallic products such as plastics that are impervious to the environments and substances that corrode metals. However, specific chemicals may attack them, depending on the composition. Prolonged exposure to UV radiation also degrades plastics. Users in high-UV locations should account for this in their materials specifications.

Contributed by Appleton Electric Co., a subsidiary of the Emerson Group of companies. Visit www.appletonelec.com.

Samuel, Son & Co. Ltd. has completed its acquisition of Wilkinson Steel and Metals, increasing the company’s presence in Western Canada. The fourth largest metal manufacturer, processor and distributor in North America says the acquisition will also improve strategic alliances with the economies of Alberta, BC and Saskatchewan dealing directly with forestry, mining, oil and gas, and shipbuilding. The deal adds bars and structurals to the Samuel product line in Western Canada, and strengthens the company’s position in carbon plate and carbon flat rolled products. Samuel, Son & Co. Ltd., based in Mississauga, Ont., employs more than 5,000 people at more than 100 service centres and manufacturing plants in North America, the UK, Australia and China.

$600M WIND PROJECT EDF EN Canada Inc. and Enbridge Inc. are partnering to buy Greengate Power Corp.’s 300 megawatt Blackspring Ridge Wind Project in Vulcan County, Alta. EDF EN Canada, a renewable energy company based in Toronto, and Enbridge, an energy company based in Calgary, will each own 50% of the $600 million project that will be the largest in Alberta when it’s completed. The project, 50 kilometres north of Lethbridge, involves 166 Vestas V100-1.8 megawatt wind turbines. EDF EN Canada, a subsidiary of EDF Energies Nouvelles in Paris, will build the project, which will be commissioned in mid-summer 2014.

Comments? E-mail jterrett@plant.ca.

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CIEN >> Plantware Easy connection to control systems.

AUTOVISION UPGRADES TO 0.2 Microscan has added capabilities to its AutoVISION machine vision software. Version 2.0 includes verification and OCV (optical character verification) tools to validate print quality, a logic tool for building pass/fail criteria, support for automated job changeover and Microscan LINK for easy connectivity to PLCs and other industrial control systems. It supports Microscan’s Vision MINI and Vision HAWK Smart Cameras, which integrate easily into systems or existing production lines. For more complex applications, AutoVISION upgrades to Microscan’s advanced Visionscape platform to handle cases where requirements expand beyond the scope of original applications. Microscan is a supplier of automatic identification and machine vision technology based in Renton, Wa. www.microscan.com

PUMPS

MATERIAL HANDLING

MICROPUMPS SELF-PRIME

PALLET TRUCKS DRIVE THEMSELVES

MP-6 micropumps from Servoflo Corp. are based on piezoelectric diaphragm pump technology to deliver air, gas or liquid for low flow applications in a variety of industries. The piezo ceramic is mounted on a brass membrane and then deformed when voltage is applied. With the resulting downstroke, the medium is squeezed out of the pump chamber. The check valves on both sides of the chamber define flow direction. With voltage decreases, the piezo’s corresponding deformation causes an upstroke of the membrane. The medium is sucked in and the chamber is filled again.

RINGS FIT WHERE REGULAR ONES CAN’T

The MP-6 is self-priming and measures only 30 x 15 x 3.8 mm. With a low power consumption of less than 200 mw, it’s suitable for portable applications. Typical flow values are 18 ml/min. maximum flow with 100 mbar backpressure for gas and 7 ml/min. flow and 600 mbar backpressure for water. Various flow rates for other liquids are easily determined by viscosity values. Servoflo is a sensor manufacturer based in Lexington, Mass. www.servoflo.com.

Metric hoopster retaining rings from the Smalley Steel Ring Co. fit where regular stamped rings and retaining rings can’t thanks to minimal radial projection and shallow groove depth. The Hoopster’s low profile, precision circularity and small radial size make it an unobtrusive component in an assembly. They’re suitable for light to heavy loads and thin wall tubes. The low radial profile will not twist or deform under load.

COUPLINGS & CONNECTORS

WINCAN OPTIMIZED FOR A TABLET

COUPLINGS COMPENSATE FOR MISALIGNMENT

WinCan ProTouch from Pipeline Analytics documents pipe inspections made with a video crawler, push camera or zoom survey camera. This alternative to the full-blown WinCan is designed for touch-screen data entry on a tablet PC for field crews. Because it’s compatible with WinCan v8, an operator can always transfer the data to exploit v8’s enhanced reporting, querying, GIS features and standards support. ProTouch distills the most popular functionality of WinCan v8 into a simple touchscreen interface, one with all the tools necessary to document manhole, mainline and lateral inspections. It generates basic manhole-to-manhole reports that include schematics and captured images, but also exports inspections to freely distributable viewer software, so clients can review video alongside section detail. Data uploads seamlessly to WinCan v8 for advanced reporting, filtering/querying, GIS integration, and standards compliance. The software works with all common video inspection hardware. Using OSD technology, it even recognizes on-screen text, so in most cases no serial connection is needed to acquire distance data. Pipeline Analytics is a software consultancy based in Pittsburgh. www.pipelineanalytics.com

SKF’s standard and customized couplings for power transmission applications are available in a number of sizes and bores to mechanically connect rotating shafts to transmit power. The couplings also compensate for shaft misalignment that would otherwise affect velocity and acceleration of the driven shaft. The standard SKF coupling product line includes jaw, grid, gear, flex, FRC, easily mounting directly on the shaft or using various compatible bushings or

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weld-on hubs. For heavy duty applications, large-size couplings provide optimum contact with shafts, accommodate high torque values, reduce power loss, and minimize the effects of misalignment. SKF is a manufacturer of bearings, seals, mechatronics and lubrication systems based in Gothenburg, Sweden. It has a Canadian office in Toronto. www.skf.com

Cuts installation times.

Touchscreen data entry.

12 PLANT WEST

Cuts installation times.

Unobtrusive in assembly.

The rings are available in sizes from 10 to 76 mm in carbon and 302 stainless steel. Internal housing rings are also available with an optional bent end (removal provision) to simplify the process. Smalley Steel Ring Co. is a manufacturer of retaining and constant section rings based in Lake Zurich, Ill. www.rotoprecision.ca

FlexTruck Easy from Dematic is a pre-engineered AGV system that comes with the necessary modules to configure an automatic pallet delivery system, including the pallet trucks themselves, a control centre, navigation target, and wireless call/dispatch stations. Call/dispatch stations allow operators to summon a vehicle and direct pallet delivery destinations. The laser guided pallet trucks automatically pick up and drop off pallets at the floor level. The control centre provides task prioritization, reporting and traffic control. Summon vehicles at will.

Other applications include delivery to/ from process equipment or from production to shipping. Dematic is producer of logistics and material handling equipment based in Luxembourgh. The company has a Canadian support facility in Mississauga, Ont. www.dematic.com

ELECTRIC BELT DRIVES LIFT Electric belt drive scissor lift tables from EnKon Systems provide static positioning to +/- .01 in. and offer precision control to +/- .06 in. (1.5 mm), which can be improved with an encoder. A portable electric belt drive lift table integrated with a rail system, mounted on its top frame assists in the pick and place of parts in a large furnace. The lift system’s vertical travel speed is 1.7 in. per second with a 1,300 lb. capacity.

POWER TRANSMISSION FUSEHOLDERS MAINTAIN LOW CONTACT RESISTANCE

Cuts installation times.

Mersen’s USG UltraSafe fuseholders are a screwless, spring pressure wire termination technology that reduces wire installation time and cost by up to 75%. The company, a provider of circuit protection applications and thermal management solutions with Canadian operations in Mississauga, Ont., says its Cage Clamp technology boosts reliability by maintaining a low contact resistance that withstands corrosion, vibration and temperature cycling. It also eliminates routine torque maintenance required by screw-type terminations. The USG Series is available for class CC, midget and photovoltaic fuses, and include all of the features of the original UltraSafe, such as IP20, DIN- rail, compact footprint, and an optional visual blown fuse indicator. www.MERSEN.com

Static positioning to +/- .01 in.

The lift’s triple belt design boosts safety and requires little maintenance. The tables come equipped with a flash resistant electrical plug for 110 V, a ULlisted control package and zinc plated components, and are most useful in clean room applications. EnKon Systems is the brand name for Herkules Equipment Corp.’s electric, hydraulic and air-powered scissor lift table systems. Herkules is based in Walled Lake, Mich. www.enkon.pro

May/June 2013

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Products and Equipment << Technology MIXERS

HVAC

HAND TOOLS

FANS DISSIPATE HIGH HEAT QUICKLY

MIXES BITUMEN DILUENTS ACCURATELY The Westfall 2900 variable flow static mixer for bitumen blending, viscosity, and density control uses a wafer-style static mixer to achieve a low coefficient of variation of injected diluents. Capable of achieving a uniform concentration of injected materials within a short downstream distance, it meets maximum pressure loss criteria and reduces bitumen diluent consumption. It mixes at low flow rates and at high rates without a head loss penalty. A shear-induced turbulence produces superior fluid mixing and accommodates flow rates up to a 20:1 turndown ratio. The mixer is made from 316 stainless steel and is available in sizes with a diameter of up to 60 in. Westfall Manufacturing, based in Bristol, RI, custom engineers components for pipeline systems. www.westfallmfg.com

>> Events

ametoronto.org

Flow rates up to 20:1.

NEMA 4 or 4X Ratings of Kooltronics filter fans boost the versatility of indoor and outdoor applications. All Guardian Series fans have a NEMA 4 Rating and come with a stainless steel shell. Use the fans for dissipating high heat loads economically in washdown, telecommunications and food industry applications. Two models are available, with airflows from 90 to 290 fan airflows. KOOLTRONIC is a manufacturer of heat exchangers and air conditioners based in Pennington, NJ. Versatile indoors www.kooltronic.com and outdoors.

Gas & Oil Expo North America 2013 SPE Heavy Oil Conference-Canada DMG World Media June 11, Calgary The Society of Petroleum Engineers (SPE) conference will provide international perspectives on best practices and technological advances in the exploration and production of heavy oil. Badge gets you into the Gas & Oil Expo. Visit http://www.spe.org/ events/hocc/2013.

For more events visit www.plant.ca, Events, Canadian PLANT Manufacturing Events.

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RIDGID FC-Cutters are available in two cutting sizes that handle pipe up to 2 in. in diameter. The company, a subsidiary of the Emerson Group based in Elyria, Ohio that manufactures tools and equipment for professional trades, says the cutters cut ABS and foam core PVC pipes cleanly. Featuring an extended handle for No pipe cleaning leverage and easy rotation, the cutters need necessary. only to be snapped on to a pipe and rotated once for a precise cut. Unlike a saw, they don’t leave burrs, eliminating the extra time taken to clean the pipe before making a connection. Each cutter comes with an extra blade. www.RIDGID.com

Share•Learn•Grow OCTOBER 21-25, 2013

AT THE SHERATON CENTRE

LET’S GET REAL...

NDT in Canada 2013 CINDE/CANSMART/IZFP October 7-10, Calgary Presented by the Canadian Institute for NDE (CINDE), The Cansmart Group (CANSMART), and the Fraunhofer Institute for Nondestructive Testing (IZFP). The latest developments in NDT, smart materials, and structural health monitoring will be discussed with a special emphasis on topics relating to the energy industry. Visit http://events.cinde.ca.

Jim Womack

Dan Jones

John Shook

Mike Rother

I mean that’s what the Gemba is all about, right? Getting real.

And that’s exactly what AME TORONTO 2013 is doing. For the first time ever at an AME conference, four of the world’s leading lean thought leaders Jim Womack, Dan Jones, John Shook and Mike Rother will each share real value stream experiences and present these lessons on stage. Don’t miss it! We pride ourselves in providing a solid learning experience at an unbelievable price. If you don’t learn at least one new idea in Toronto that you can bring back to your organization, we’ll refund your entire registration fee. We have been offering this guarantee for the last three conferences and have never had a single refund request. We think that speaks volumes about the value attendees have received.

LAST CHANCE DISCOUNTS

25% 20% 15%

SAVE

National Buyer/Seller Forum JuneWarren-Nickle’s Energy Group Nov. 12-14, Calgary This annual oil sands event, presented by JuneWarren-Nickle’s Energy Group, Glacier Media Group, Canadian Manufacturers & Exporters and the Province of Alberta, brings buyers and sellers from across the energy supply chain. Visit http://nbsf.ca.

CUTTERS CUT PIPES CLEAN

GROUPS 25+

TEAMS 10–24

1–9 PEOPLE

This is the last chance to get great discounts. Register before the end of June and save a bundle. Register at ametoronto.org.

END JULY 1, 2013

With many thanks to our Patron/Cornerstone Sponsors and Collaborating Partners

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Departments

>> Postscript

40/40 carbon levy: just plain foolish BY KENNETH GREEN

arbon taxes are once again dominating the discussion over energy policy in Alberta, where Diana McQueen, the province’s environment minister, has proposed a sharp hike to the levy. Currently large emitters in Alberta are required to reduce greenhouse gas emission intensity (emissions per unit of production) by 12%, or face a levy of $15 for every additional tonne. The new WMTS_Ad_9_12_x_11_125-rev.pdf 1 13-04-25 proposal would hike the emission inten-

Eliminating the oil sands entirely would have virtually no “measurable effect on the global climate… ”

sity target to 40% and raise the levy to $40. Nice round numbers, but extremely ambitious, yet well short of what the Pembina Institute would like to see at $100 per tonne. Premier Alison Redford has not endorsed such a plan. She recently told Macleans: “40/40 isn’t a number that we’ve in any way landed on or proposed.” Since the government hasn’t settled on 9:57 AM a plan yet, this might be a good time to

review the serious drawbacks of carbon levies. Most important: there’s little to no benefit. Canada is responsible for 2% of global greenhouse gas emissions. The oil sands is responsible for about 7% of that, or about 0.15% of global emissions. Eliminating the oil sands entirely would have virtually no measurable effect on the global climate. The government argues: “We buy so-

NEW DATES!

JUNE 4-6, 2013

EDMONTON EXPO CENTRE, NORTHLANDS

cial licence to develop our oil sands with a carbon levy.” Alberta has had a carbon levy since 2007, but attacks on the oil sands have only grown more venomous. Bill McKibben of 350.org and James Hansen, arguably the world’s leading climate activists, have both said the oil sands are “game over” for the climate. So a question for those addicted to giving in to what amount to green shakedowns: Does it seem likely that a carbon levy, however high, would buy social licence from McKibben, Hansen or David Suzuki? Others suggest that all we’re really trying to do is buy social license for Keystone XL from the US, but such a view is naïve. The Keystone decision comes down to pure domestic politics between the Democrats and Republicans. It will most certainly not be influenced by a levy most Americans wouldn’t understand in a place they probably couldn’t point out on a map. With no social or political benefits, what are the liabilities? Unless instituted in an economically optimal way (with full revenue neutrality based on lowering other, more economically distorting taxes), they do what any other tax does: impose a drag on economic activity. That means lost wages, lost jobs and lost revenues to fund social services.

Economically regressive

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Carbon levies are also discriminatory. They penalize energy producing regions, energy intensive industries and economies with greater levels of industrial activity. And they discriminate against the poor. Levies cascade down to consumers and their costs go up. Compared with those with higher incomes, people with lower incomes spend a greater proportion of their pay on the basic necessities than those with higher incomes. So the various impacts of carbon levies will be economically regressive. And they may start low with a reasonable growth rate, but as we’re seeing in both Alberta and BC, the pressure to raise them grows the longer they’re implemented. Redford should consider two fundamental policy questions: Will Albertans receive more benefits than costs from a carbon levy? And of the many things Alberta’s government can do to facilitate the efficient functioning of markets and trade, is a carbon levy the most efficient and equitable option? By giving those questions the diligence they deserve, Premier Redford may avoid landing on a policy that she, and all of Alberta, will come to regret. Kenneth Green is senior director, energy and natural resources at The Fraser Institute. This column is distributed by Troy Media in Calgary. Visit www. troymedia.com. Comments? E-mail jterrett@plant.ca.

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