Steinmüller Babcock Environment, GE Power, Stora Enso, Valmet AB, Hitachi Zosen INOVA, Rinheat OY, Doosan Škoda Power, Graanul Invest are some of the examples of new customers from last year. In this article we review contracts with new customers as well as highlight companies who audited our compliance for possible future projects
2019 was busy beyond expectations in terms of quotations. We received RFQ’s from both existing and new customers, giving us the opportunity to manage our sales portfolio largely according to strategy.
If we reflect 2019 realization, the markets seemed to be high in the Pulp & Paper and Energy business segments. Improving the energy efficiency of pulp and paper production is one of the key strategies to decarbonize the sector. While paper and paperboard production is expected to increase by 0,9% annually, energy use in the sector needs to decline 0,4% per year to get on track with the Sustainable Development Scenario (SDS) by 2030. This will require greater recycling, as recycled production requires considerably less energy, a higher usage of bioenergy and adopting waste heat recovery technologies.
With this said, we’re glad to have started a partnership with one of the top manufacturers in Paper and Pulpmarket, Stora Enso. In this first ever cooperation, Estanc’s scope in this project is to provide a upper chamber renewal.
Trending demand to supply equipment for the Waste to Energy industry
We’re glad to witness that renewable energy industry is growing worldwide. It is driven largely by an increasing customer demand, cost competitiveness and innovation, yet collaboration allows this market to enter a new phase. Business models and financing approaches are supporting a shift in power generation investments towards renewables.
In the energy sector we’re awarded with several contracts with German waste to energy technology supplier Steinmüller Babcock Environment to supply various equipment such as feedwater tanks, bypass condenser, blow down tanks, auxiliary condensate tanks, closed cooling water filling etc. Most of the orders will be shipped for the extended boiler lot of the Salo Waste to Energy plant in southwestern Finland and to Energy from Waste Plant expansion project in Premnitz. Regarding the Salo project for example, in the single-line plant, up to 120,000t of municipal and commercial waste from the cities of Turku and Salo will be thermally recycled each year. After commissioning, the plant generates 180-190GWh of heat, which is fed into the local district heating network. This corresponds to 90% of the total district heating required in the city of Salo. Likewise, 72 GWh of electricity are fed into the public grid every year.
In June 2019, we started cooperation with Hitachi Zosen INOVA who also operates in Waste to Energy industry. In this first common project, Estanc’s scope is to supply a feedwater tank for new Rookery South Energy Recovery Facility in England which will go into operation in 2022. The Rookery plant will play an active part in the UK’s endeavors to reduce or eliminate the need for landfill and exports of refuse and, will therefore play a role in reducing of the UK’s greenhouse gas emissions.
One of the most technically complex projects of the year had proven to be with a prototyping project with Valmet AB. Our scope is to supply 2 reactors, T-pipe and discharger for biomass pre-treatment system for Clariant’s plant in Romania. One of the challenges of the project was the moving parts of the equipment, for example the reactor screw was 15,4m long and weighted almost 17t. The screws were set on two large SKF bearings which also had two mechanical seals to isolate the rotating shaft.
Last but not the least, the block of new customers will be summarized by following companies such as Rinheat Oy, GE Power, Doosan Škoda Power and Graanul Invest. Graanul Invest started a new biomaterials business line and they are building a flagship plant for wood fractionation technology. Estanc scope in this project was to supply an enzyme storage tank for this demo plant.
In addition to new customers with whom we have reached the project phase, we have also been audited in 2019 by the following companies, some of whom are promising for future potential partnership such as Andritz KMPT GmbH, Standardkessel Baumgarte Service GmbH, Yara Marine Technologies and more.
Expectations for 2020
As of now we have sold 75% of our capacity by the end of this year. In comparison to 2019, pressure vessels sales have already increased by 2/3. Also we continue to remain strong competitors in the heat exchangers’ field. Regarding scrubber market, we continue to communicate with partners and monitor developments for possible orders in the second half of 2020.