sbesta – NS Energy https://www.nsenergybusiness.com - latest news and insight on influencers and innovators within business Sun, 06 Nov 2022 02:44:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.7 Building a stronger future with sprayed concrete for underground mining https://www.nsenergybusiness.com/news/building-a-stronger-future-with-sprayed-concrete-for-underground-mining/#respond Tue, 01 Nov 2022 00:00:22 +0000 https://www.nsenergybusiness.com/?p=299259 The post Building a stronger future with sprayed concrete for underground mining appeared first on NS Energy.

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Technological advancements and improving processes in the mining industry ultimately aim to improve safety, productivity and sustainability. Over the last 40 years, one such area of development has been sprayed concrete as a part of the support system for underground mines and tunnels.

Concrete spraying is a time and cost-effective, mechanised technological solution for shaft lining and concrete construction. Application methods for sprayed concrete only continue to improve, especially when utilising digitalisation to ensure optimised layer thickness and reduce CO2 emissions. The automatisation of sprayed concrete not only improves efficiency but also simplifies the process for the operator, requiring fewer worker resources.

As with any step towards digitalisation, the collection of data and the ability to effectively analyse this information has revolutionised the way that informed decisions can be made during tunnelling projects. This reflects an industry-wide trend towards the Building Information Modelling (BIM) and 3D model-based processes during planning, designing and construction. Analysing and exchanging this data during the course of mining project enables teams to understand how to improve efficiency and not repeat operations or measurements.

As innovators in the mining sector, Normet has designed intelligent software that works with spraying robots and underground equipment to achieve digitalised and sustainable underground mining and tunnelling. Scanning technology is one crucial area of data monitoring that continues to grow, with a focus on accuracy, simplifying use, and reducing overall excavation time.

Scanning technology aims to ensure safety with optimised tunnel support using sensors that monitor and control applied thickness. This data is then transferred to site office teams via wireless LAN networks. Normet’s SmartScan combines this sensor technology with Normet sprayed concrete equipment. Using 3D laser scanning technology, SmartScan automates the process and eliminates the need for probes to conduct manual calculations.

The automated calculations and monitoring of applied sprayed concrete thickness improves efficiency and reduces wastage, as well as allowing operators to remotely scan areas where repairs and concrete application may be needed. Once scanned, the data is transferred to the cloud where it can be visualised to show concrete thickness in real-time. This visual data can be exported for retrospective analysis or automatically generated concrete thickness reports.

SmartScan works in conjunction with three variations of Normet’s SmartSpray technology. SmartSpray Lite utilises a spraying nozzle that maintains its position to spray the concrete at the target surface. Operations are controlled from a single joystick to simplify use. The SmartSpray Pro has an automated nozzle so that operators only need to control the distance from the target and move between segments. The ProPlus calculates the path to automate the entire process, including distance and speed for optimal concrete layering.

Normet also offers a broad portfolio of wet concrete and dry concrete spraying equipment for mining and tunnelling applications. The wet concrete Spraymec range are electro-hydraulic self-propelled mobile concrete sprayers, including the NorRunner 140 DVC, Alpha 1430 PC, Alpha 30, LF 050 DC, MF 050 VC, SF 050 D and 8100 VC. For dry concrete applications, the company offers the Normet Piccola and Normet GM.

Looking to the future, concrete spraying will become increasingly automated and in many cases, entirely remote. Remote operations are much safer, especially in mines where deeper excavation is being carried out. Using battery-driven remote control vehicles and smart technology such as the SmartScan and SmartSpray, operators will be able to carry out their work in a way that is safer, more efficient and more sustainable than ever before.

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Why the oil and gas industry should expand into geothermal energy https://www.nsenergybusiness.com/news/why-the-oil-and-gas-industry-should-expand-into-geothermal-energy/ https://www.nsenergybusiness.com/news/why-the-oil-and-gas-industry-should-expand-into-geothermal-energy/#respond Tue, 04 Oct 2022 00:00:10 +0000 https://www.nsenergybusiness.com/?p=297207 The post Why the oil and gas industry should expand into geothermal energy appeared first on NS Energy.

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As oil and gas companies seek diversification strategies to navigate the low-carbon transition, geothermal energy can offer a route into renewable power generation that aligns closely with their operational expertise.

Decades of exploration, drilling experience and data collection provide these businesses with a unique advantage in the geothermal space, and the financial contribution they could potentially bring would go a long way to further de-risking the sector for future growth.

International Renewable Energy Agency (IRENA) estimates average annual investments of around $24bn will be needed in the geothermal sector over the next three decades to remain consistent with a 1.5C climate pathway.

Meanwhile, the International Energy Agency (IEA) has identified 52GW of geothermal capacity as being necessary for deployment by 2030 in a net-zero scenario. That compares to just 15GW installed capacity at present.

By 2040, the IEA suggests 98GW geothermal capacity will be needed, rising to 126GW by 2050.

Geothermal is “very much within the expertise of oil and gas companies,” says Marco Frassinetti, sales director at Exergy, which manufactures Organic Rankine Cycle (ORC) equipment for producing electricity from low to medium-temperature heat sources.

“This is not only a way to use their competencies, but also to push the boundaries of what is done in geothermal today to another level. The first renewable sector an oil and gas company should be looking at is geothermal, because it is very close to their knowledge and expertise.

“Their willingness to invest will be a big benefit – a better understanding of the resources, a more precise relation between what is expected and what is found. This will be what makes the wheels spin, because then you can start attracting investment and building financing structures.”

Oil well. (Credit: Anita starzycka/Pixabay)

A major opportunity in the sector exists in abandoned or unproductive oil and gas wells – of which there are millions in the US alone according to the US Environmental Protection Agency, and many further opportunities across Europe and the wider world.

These wells could be viably repurposed to generate electricity from underground heat sources, giving fossil fuel producers a clear entry point into the renewables space while simultaneously dealing with the issue of how to safely retire these exhausted assets.

Moving into the geothermal sector could also offer a route into new “green” employment for oil and gas workers with skills specific to the drilling and maintenance of wells.

“Wells are usually already sited within an existing infrastructure, both for the gathering of the resource and for the grid connection,” Frassinetti explains, “so the overall expenditure to make them profitable from a power generation point of view is much lower than greenfield geothermal investment.”

He adds that although there are some technical hurdles to converting these wells into geothermal heat sources, they are not significant barriers and the technologies that are required do already exist.

As well as repurposing old oil and gas wells, there is also an opportunity for co-generation in active assets, whereby heated well water, before reinjection, can be used to produce electricity.

Exergy manufactures ORC equipment that generates electricity from turbines using heat sources in the range of 90C to 350C, and even up to 550C for small power outputs. Exergy’s ORC systems utilise turbines with unique technology known as a Radial Outflow Turbine.

Its systems are already used in refineries, LNG processing and gas-fired power generation, and have also been deployed by geothermal producers around the world.

The Italian company has more than 370MW of geothermal power generation capacity installed or under construction in its portfolio – the second-largest ORC binary geothermal fleet worldwide.

In terms of the tools needed to exploit stranded oil and gas wells, Frassinetti says the technology is available and it’s just a case of forming a deeper understanding of the necessary techniques.

“In terms of capabilities, this is absolutely something we can do because the temperature ranges are very similar with those used in ORCs,” he says.

A team of experts on both the technical development and project execution sides will be key to unlocking this new potential.

Frassinetti adds: “It’s a technology in development, but that development is based on very well-known data. It simply comes down to studying the technical details and peculiarities of a project to find the best viable technical solution for developing it and making it profitable.”

Oil and gas companies are well-positioned to advance this understanding, given their wealth of knowledge from years of drilling specialisation and the accumulation of associated seismic information.

While many have chosen to invest in completely new sectors like wind or solar in their low-carbon planning, geothermal energy offers an opportunity to exploit the skills, infrastructure and data already available to them.

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Remanufacturing paves the way for innovation https://www.nsenergybusiness.com/news/remanufacturing-paves-the-way-for-innovation/#respond Sat, 01 Oct 2022 06:28:24 +0000 https://www.nsenergybusiness.com/?p=299254 The post Remanufacturing paves the way for innovation appeared first on NS Energy.

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The Normet exchange program (modular remanufacturing) offers customers significant savings compared to replacing equipment, as well as being sustainable and reducing downtime. In a year full of uncertainty, this couldn’t have come at a better time.

It may seem obvious that rebuilding and refurbishing machinery that is outdated, inefficient or malfunctioning could save money (in fact, Normet rebuild services have saved customers around 30%), but would operators need to worry about machinery not performing as well as investing in something new? With the remanufacturing programme, that is certainly not the case. Normet is so confident in the remanufacturing process that all rebuild are certified as new, including completely re-manufactured equipment coming with a twelve-month/2000-hour full warranty for increased protection from unexpected costs.

To put it to the test, the programme was trialled in harsh and adverse mining sites that would benefit from the service. The rebuilds took place at a Normet hub, but they can also be done directly at the customer’s mining site. This includes Normet bringing tools and personnel to a dedicated work area if a site is located where transporting equipment is difficult, expensive or prohibited. At large sites, this may include a workshop in a space provided by the customer.

So what does the programme entail?

The average case takes 16 weeks, during which Normet Rental can provide customers with temporary replacement machinery to prevent downtime. Normet disassembles and inspects the machine, sandblasts and repaints the core, replaces hydraulics and electronics, and recommends and feasible upgrades. Finally, the remanufactured machinery is tested and certified.

Remanufacturing not only extend the work-life of equipment, but also provide the opportunity to keep machinery up to date through controlled installations of upgrades and modernisation kits. Operations can also equip machinery with the latest technology to improve the safety and performance of an existing fleet without investing in new equipment.

With the global pandemic and resulting restrictions and shutdowns, 2020 was a challenging year for the mining industry, which has only fuelled demand for refurbishing services. In an age of uncertainty, mines have delayed capital investment decisions, including orders for new machines, and restrictions have further complicated the logistics of importing and transporting essential equipment, particularly in remote areas.

In terms of future plans, says Normet’s global service product manager for remanufacturing, Mika Nevalainen, the company plans to strengthen its presence in India – a key market for the organisation – and to include remanufacturing as part of cost-per-hour service contracts.

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Normet upgrades its TBM soil conditioner for maximum efficiency https://www.nsenergybusiness.com/news/normet-upgrades-its-tbm-soil-conditioner-for-maximum-efficiency/#respond Thu, 01 Sep 2022 11:51:10 +0000 https://www.nsenergybusiness.com/?p=299191 The post Normet upgrades its TBM soil conditioner for maximum efficiency appeared first on NS Energy.

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True to its dedication to strive for innovation and sustainability, Normet has continued to develop and optimise its Tunnel Boring Machine (TBM) technology portfolio with the introduction of its upgraded soil conditioning solutions, following the launch of its next-generation Tail Sealants range.

Tunnel boring projects simply would not be possible without TBM additives. Foams, polymers and other additives are injected into the tunnel face in order to modify the characteristics of soft ground, thereby making it easier to transport through the mucking system, as well as providing the required counter pressure to prevent uncontrolled material inflow.

Chemicals are also used on-site to increase TBM speed and reduce cutterhead torque and wear. With this in mind, the geological location and the type of soil present must be analysed to make an informed decision about what kind of TBM chemicals are required. Typically, a range of different soil conditioners will be recommended as the project develops.

Normet’s experienced R&D team have worked to enhance the current range of soil conditioning products to formulate a comprehensive portfolio of high-performing eco-friendly surfactants and polymers. The range aims to minimise TBM additives’ environmental impact (such as reducing toxicity and increasing biodegradation), encourage the use of renewable raw materials where possible, and ensure optimised efficiency to minimise material consumption.

Continual improvements can be seen across the entire TBM technology range to ensure tunnel boring excavations are as efficient and sustainable as can be. For instance, TamSeal TG91 and TamSeal TG92 have a lower density than their predecessors to allow wire brush chambers to be filled economically. With vigorous testing, the R&D teams have optimised washout characteristics, adhesion and compressibility.

Normet’s ongoing research and development, combined with technical support, ensures that customer’s get the most out of this technology. According to Normet’s TBM projects manager, Robin Swift: “On the R&D and the lab side of things, we have to make sure our products are efficient. If it’s the additive clay product, we have to make sure it’s efficient at dispersing multiple types of clay and improving workability, but we also understand that using the foam property on site really does have a big impact on water consumption. It’s all well and good having a really good product, but if they’re not using it as intended, they won’t optimise the performance and the versatility of the soil conditioning system.”

Improving on Normet’s already industry-leading offerings, the new TamSoil range even further reduces TBM cutterhead torque, cutterhead tool and screw wear, and improves muck flow characteristics. Not only do these improvements maximise efficiency even through difficult strata types and minimise production risks, it does so in a way that is cost-effective and supported by Normet’s global team of technical experts.

For more information about Normet’s speciality chemicals for TBM tunnelling, or to purchase TBM technology for your site, visit their website.

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Paragon Energy Solutions and NuScale Power Sign Patent License Agreement https://www.nsenergybusiness.com/news/paragon-energy-solutions-and-nuscale-power-sign-patent-license-agreement/#respond Mon, 18 Jul 2022 00:00:14 +0000 https://www.nsenergybusiness.com/?p=314570 The post Paragon Energy Solutions and NuScale Power Sign Patent License Agreement appeared first on NS Energy.

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Paragon Energy Solutions, a company focused on providing safety-related parts and components to the nuclear industry, has signed a patent license agreement with NuScale Power. The agreement will enable the widespread use of the advanced Highly Integrated Protection System (HIPS) platform, a protection system architecture jointly developed by NuScale Power and Rock Creek Innovations, a company acquired by Paragon in December 2021.

With the signing of this license agreement, the broader nuclear industry will now have the opportunity to implement the Nuclear Regulatory Commission approved HIPS platform within their existing plants or alongside their developing technologies. The HIPS platform was developed to enable those in the nuclear industry to meet global decarbonization goals via an efficient, cost-effective, and cyber-resistant I&C protection system solution.

Doug VanTassell, President and CEO of Paragon, shared that “HIPS performs with robust, analog-like reliability while providing essential diagnostics for plants to reduce O&M costs. The HIPS technology is a game-changer for nuclear power plant operators who are looking for safety-related systems that work for multiple decades without major upgrades.”

“The nuclear community shares a common goal of delivering carbon-free and reliable power to our respective customers and ensuring the highest level of safety,” said John Hopkins, NuScale President and Chief Executive Officer. “NuScale and Paragon are thrilled to offer our sophisticated HIPS technology to help our industry advance into a clean energy future.”

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ExxonMobil, Imperial to sell Montney and Duvernay Canadian assets for $1.47bn https://www.nsenergybusiness.com/news/exxonmobil-imperial-to-sell-montney-and-duvernay-canadian-assets-for-1-5bn/ https://www.nsenergybusiness.com/news/exxonmobil-imperial-to-sell-montney-and-duvernay-canadian-assets-for-1-5bn/#respond Wed, 29 Jun 2022 08:04:36 +0000 https://www.nsenergybusiness.com/?p=313754 The post ExxonMobil, Imperial to sell Montney and Duvernay Canadian assets for $1.47bn appeared first on NS Energy.

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ExxonMobil and Imperial Oil have signed an agreement with Whitecap Resources to sell their Montney and Duvernay shale oil and gas assets in Canada for $1.47bn in cash.

The assets comprise 567,000 net acres in the Montney shale and 72,000 net acres in the Duvernay. The sale also includes an additional acreage in other areas of Alberta.

ExxonMobil Canada and Imperial Oil Resources own the assets through their jointly owned company XTO Energy Canada.

The shale assets have a net production capacity of about 140 million cubic feet of natural gas per day (mmcf/d) and approximately 9,000 barrels per day of crude, condensate and natural gas liquids.

ExxonMobil stated: “The sale completes the marketing effort announced in January, and is consistent with ExxonMobil’s strategy to focus upstream resources on key assets to deliver long-term value to shareholders.”

The acquisition is expected to increase Whitecap’s total acreage in the Montney by more than 500%, adding 1,772 drilling locations. In addition, it is anticipated to consolidate some of its working interests at Kakwa, Alberta.

The deal also includes the acquisition of 100% ownership of the 15-07 gas processing facility, a shallow cut facility with 165mmcf/d of capacity.

Whitecap stated: “The acquired assets are characterized by high production rates and reserves, efficient and highly economic liquids-rich assets with significant tier one drilling locations across the entire 672,000 (639,000 net) acres land position.

“Our initial plans are to grow this asset to 50,000 to 60,000 boe/d over the next 3-5 years, at which point there will still be 20 years of tier one drilling inventory to maintain production.

“Our budgeted wells for the Montney and Duvernay rank top decile among our asset base, and pro-forma the Acquisition the Montney and Duvernay will represent the highest proportion of long-term resource potential within our asset portfolio.”

Whitecap plans to fund the acquisition through existing credit facilities and a new committed 4-year term loan.

The transaction is expected to be completed before the end of the third quarter, subject to regulatory approvals.

RBC Capital Markets served as exclusive financial advisor to Imperial and ExxonMobil Canada on the transaction, while National Bank Financial is a financial advisor to Whitecap.

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CenterPoint Energy wins approval for 460MW gas-fired power facility https://www.nsenergybusiness.com/news/centerpoint-energy-wins-approval-for-460mw-gas-fired-power-facility/ https://www.nsenergybusiness.com/news/centerpoint-energy-wins-approval-for-460mw-gas-fired-power-facility/#respond Wed, 29 Jun 2022 00:30:15 +0000 https://www.nsenergybusiness.com/?p=313768 The post CenterPoint Energy wins approval for 460MW gas-fired power facility appeared first on NS Energy.

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CenterPoint Energy has announced the receipt of regulatory approval for the construction of a 460MW natural gas-fired power generation facility in Indiana, US.

The approval has been given by the Indiana Utility Regulatory Commission (IURC) to CenterPoint Energy Indiana South. It advances the company’s long-term electric generation transition plan.

The project involves the construction of two natural gas combustion turbines (CTs) that will help in replacing part of its existing coal-fired generation fleet.

To be built with an estimated cost of $334m, the power generation facility is expected to support the required electric generation after the retirement of A.B. Brown units 1 and 2 in late 2023.

CenterPoint Energy generation development senior vice president Steve Greenley said: “Although the majority of the proposed generation outlined in our plan comes from renewable resources, there remains a need for reliable, resilient and fast-ramping generation to operate around-the-clock when the sun and wind are insufficient to power the renewable resources.

“While the combustion turbines may not run constantly, it is very likely they will operate several hours each day in order to supplement our renewable generation with a lower carbon solution, when renewable facilities are not at peak generating levels.”

The new gas-fired facility will be constructed at the current site of the A.B. Brown power plant in Posey County, Indiana.

The coal-fired generation replacement is expected to advance CenterPoint Energy’s efforts to reach its goal of net zero on direct carbon emissions by 2035.

In May this year, CenterPoint Energy Indiana South secured IURC approval to enter into two power purchase agreements (PPAs) to procure 335MW of solar energy.

The approval was given for a 15-year PPA with Oriden for a 185MW of solar capacity and a 20-year PPA with Origis Energy for 150MW.

CenterPoint Energy currently supplies electricity to nearly 150,000 customers in southwest Indiana in all or portions of Gibson, Dubois, Pike, Posey, Spencer, Vanderburgh and Warrick counties.

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Liontown takes FID to develop Kathleen Valley lithium project in Australia https://www.nsenergybusiness.com/news/liontown-takes-fid-to-develop-kathleen-valley-lithium-project-in-australia/ https://www.nsenergybusiness.com/news/liontown-takes-fid-to-develop-kathleen-valley-lithium-project-in-australia/#respond Wed, 29 Jun 2022 00:26:22 +0000 https://www.nsenergybusiness.com/?p=313780 The post Liontown takes FID to develop Kathleen Valley lithium project in Australia appeared first on NS Energy.

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Liontown Resources has taken the Final Investment Decision (FID) to develop its 100%-owned Kathleen Valley lithium project in Western Australia.

The FID will enable the start of construction on the project and the production of spodumene concentrate is expected to begin in the second quarter of 2024.

Liontown has also revised the pre-production capital cost estimate for the lithium project to A$545m ($375.4m) from A$473m.

The revision is mainly due to optimisation and expansion of the front-end engineering design (FEED) scope across a range of areas and an escalation in general costs.

Located 680km north-east of Perth in Western Australia, Kathleen Valley is expected to have an initial production of approximately 500ktpa of spodumene concentrate, expanding to nearly 700ktpa in 2029.

Liontown managing director and CEO Tony Ottaviano said: “Announcing FID is a significant milestone and represents a major landmark for the Project’s development. On the back of securing our third foundational offtaker and favourable debt financing arrangements, the Board has moved swiftly and decisively to make a FID, underscoring Liontown’s collective determination to deliver Kathleen Valley as quickly as possible.”

The company has taken the FID following the signing of its third and final foundational offtake agreement with Ford Motor Company.

Under the five-year agreement, the company will supply up to 150,000 dry metric tonnes (DMT) per annum of spodumene concentrate to Ford.

Liontown has also signed an agreement with the global automaker for a A$300m debt funding for the development of the Kathleen Valley project.

Previously, Liontown executed offtake agreements with Tesla and LG Energy Solution.

The offtake agreements account for nearly 90% of Kathleen Valley’s initial spodumene concentrate production capacity of 500ktpa.

The Kathleen Valley has a lithium deposit with a mineral resource estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5.

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Cummins and Komatsu to Collaborate on Advancing Development of Zero Emissions Mining Haul Trucks https://www.nsenergybusiness.com/news/cummins-and-komatsu-to-collaborate-on-advancing-development-of-zero-emissions-mining-haul-trucks/ https://www.nsenergybusiness.com/news/cummins-and-komatsu-to-collaborate-on-advancing-development-of-zero-emissions-mining-haul-trucks/#respond Wed, 29 Jun 2022 00:00:32 +0000 https://www.nsenergybusiness.com/?p=313797 The post Cummins and Komatsu to Collaborate on Advancing Development of Zero Emissions Mining Haul Trucks appeared first on NS Energy.

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Cummins Inc. (NYSE: CMI), a global power technology leader and Komatsu Ltd., a global provider of equipment and services for the construction and mining industries, have signed a memorandum of understanding to collaborate on the development of zero-emissions haulage equipment. Building on a legacy of diesel engine partnership across a wide variety of mining and construction equipment, Cummins and Komatsu will initially focus on zero emissions power technologies including hydrogen fuel cell solutions for large mining haul truck applications.

“Komatsu’s deep expertise in mining and equipment design and integration paired with our advanced power technologies including hydrogen fuel cells will accelerate decarbonization of mining equipment,” said Amy Davis, Vice President and President of New Power at Cummins. “The mining industry has great potential to lead in adopting renewable solutions.”

In August 2021, Komatsu announced its power agnostic truck concept for a haulage vehicle that can run on a variety of power sources, including diesel electric, trolley, battery power and hydrogen fuel cells. Working with Cummins is complementary to Komatsu’s development of the power agnostic truck.

As a leading independent power provider in the mining segment, Cummins provides unique application understanding that is critical to introducing reliable, quality products that can withstand the harshest environments. Cummins has a broad portfolio of batteries, fuel cell systems and electrolyzers (for generating hydrogen), that are key building blocks for decarbonization. Together, the two companies have a long history in the global mining market and strong technical capabilities necessary to develop these new solutions.

“Cummins has been a long-term partner of Komatsu and has been investing in the key technologies required to support the energy transition in mining,” said Masayuki Moriyama, President of Komatsu’s Mining Business Division. “These are critical technologies for helping mining customers reduce carbon emissions and accelerate carbon neutrality. Building on our partnership with Cummins, we are working to accelerate sustainable solutions for our customers.”

As a company, Komatsu is committed to minimizing environmental impact through its business, targeting a 50% reduction in CO2 emissions from use of its products and production of its equipment by 2030 (compared to 2010 levels) and a challenge target of achieving carbon neutrality by 2050.

Komatsu has worked to reduce greenhouse gas emissions for customers through innovative product development for decades in many areas including electric diesel dump trucks, hybrid excavators, electric power excavators, regenerative energy storage capabilities and fuel saver programs.

Komatsu also announced in 2021 the creation of its Greenhouse Gas (GHG) alliance with customers to actively collaborate on product planning, development, testing and deployment of the next generation of zero-emission mining equipment and infrastructure. The alliance’s initial target is advancing Komatsu’s power-agnostic truck concept, with a goal of commercial offering in 2030.

The collaboration with Komatsu is part of Cummins’ Destination Zero strategy to reduce the greenhouse gas (GHG) and air quality impacts of its products and reach net zero emissions by 2050. This commitment requires changes to Cummins’ products and the energy sources that power them. Additionally, Komatsu intends to explore further possibilities in zero emissions mining haul truck development.

 

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Air Products and Gunvor to Cooperate on Green Hydrogen Import Terminal in Rotterdam https://www.nsenergybusiness.com/news/air-products-and-gunvor-to-cooperate-on-green-hydrogen-import-terminal-in-rotterdam/ https://www.nsenergybusiness.com/news/air-products-and-gunvor-to-cooperate-on-green-hydrogen-import-terminal-in-rotterdam/#respond Wed, 29 Jun 2022 00:00:26 +0000 https://www.nsenergybusiness.com/?p=313788 The post Air Products and Gunvor to Cooperate on Green Hydrogen Import Terminal in Rotterdam appeared first on NS Energy.

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Air Products (NYSE:APD) and Gunvor Petroleum Rotterdam (GPR), a wholly-owned subsidiary of Gunvor Group (Gunvor), have signed a joint development agreement for an import terminal in Rotterdam. The agreement responds to the accelerating demand for green energy sources to meet climate objectives and the need to diversify energy sources. The import terminal is expected to provide green hydrogen to the Netherlands in 2026.

Green Hydrogen Economy
Green hydrogen is key to the energy transition. It has significant potential to decarbonize hard-to-abate sectors, such as heavy-duty transport and industry. A substantial amount of renewable energy is needed to produce green hydrogen. It is unlikely that Europe will be able to produce these amounts locally, making large-scale, green hydrogen imports essential for reaching targets set under the European Union’s (EU) “Fit for 55” legislative package and REPowerEU. With this project, the Netherlands would make a leading contribution to EU energy transition goals.

Key Development Milestones
The signing of the agreement is an important step towards an investment decision that will be taken as the companies gain confidence in the regulatory framework, permitting process, and funding support. Certification of the green hydrogen is needed to ensure that the imported green ammonia and resulting green hydrogen is recognized and counted towards the EU renewable energy targets. For funding support, this project seeks to be recognized as an ‘Important Project of Common European Interest’ (IPCEI). Air Products looks forward to continuing engagement with the relevant stakeholders to establish the broader support available to the project.

Gateway to Northwest Europe
The Gunvor site in Europoort Rotterdam is one of several European locations envisaged by Air Products for the development of a green hydrogen import terminal. It offers strategic access for receiving green ammonia from large-scale green hydrogen production locations operated by Air Products and its partners from projects around the world. The green ammonia will be converted to hydrogen and distributed to markets within Europe, including the NetherlandsGermany, and Belgium. Air Products and Gunvor both have a proven track record for reliability and safety and are committed to delivering world-class performance in personal and process safety.

Benefits to the Dutch Economy
Independent analysis from CE Delft has shown the project will ultimately deliver EUR 260-425 million of indirect economic benefits, culminating in thousands of new jobs over the coming years. The savings in carbon dioxide (CO₂) emissions to the transport sector, combined with the benefit of reduction in other harmful emissions, would create an overall environmental benefit valued at over EUR 100 million by 2030.

Ivo Bols, President Europe and Africa, said, “Air Products is pleased to take a next step towards a green hydrogen import terminal in Rotterdam, together with our partner Gunvor. Hydrogen import is essential to diversify our energy resources and meet climate objectives. Air Products, the largest hydrogen producer in the world, is committed to contribute to both ambitions by accelerating the development of the European green hydrogen economy via first-mover projects like these. We are looking forward to further cooperation with Gunvor to make Rotterdam ready for green hydrogen imports.”

“Gunvor is pleased to be partnering with Air Products through Nyera, our investment vehicle dedicated to supporting the Energy Transition, in order to leverage strategic locations such as our Rotterdam facility in a way that advances the development of sustainable and renewable energy initiatives,” said Shahb Richyal, Global Head of Portfolio at Gunvor.

Allard Castelein, CEO Port of Rotterdam: “We are very supportive of Air Products’ and Gunvor’s plans, which are a great example of using a brownfield location to set up a new import terminal for green ammonia in the port of Rotterdam. Both companies have been active in the energy sector for a long time and are responding to society’s demand to reduce greenhouse gas emissions as well as to increase Europe’s energy independence. Green ammonia is not only a hydrogen carrier and a feedstock for the chemical industry, but it’s also an important renewable fuel for the shipping sector. First-mover projects like this will make Rotterdam Europe’s foremost Hydrogen Hub.”

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