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Environmental Compliance Can Be Profitable

Environmental Compliance Can Be Profitable

Robert Richardson Ph.D.

Environmental compliance is a necessity, but it does not need to be expensive and in some cases it can even be profitable. For example, industries that meet the requirement outlined below can use a process now available that removes essentially all NOx and SO2 and thus makes available a large number of Emission Reduction Credits (ERCs). These can be sold.

A process now available removes essentially all NOx and SO2 and thus makes available a large number of Emission Reduction Credits (ERCs). These can be sold.

This article describes how to profit from economic incentives associated with environmental abatement in excess of that required by regulatory agencies.

The formula for profitable environmental compliance is simple. Combine one each of the following:

 

  • Large source of criteria air pollutants that is locally regulated by the Environmental Protection Agency (EPA)
  • Availability of environmental credits with an economical price per weight for the regulated pollutants (California and Texas areas are good candidates.)
  • Availability of an environmental abatement technology that can cost effectively remove considerably more than the required amount of the regulated pollutant.

 

Combining the three requisite components does require skill because there are many details and intricacies surrounding the successful integration in a way that maximizes profitability.  An example is the following:

 

  • Environmental credits that are the core of profitability could be integrated into other environmental programs like cap-and-trade and emission trading.  Fortunately, the options are concise and professionals are available to provide guidance in this area of complexity.
  • It is essential that the source emitting the criteria pollutants is affiliated with a geographic area that offers credits for the destruction of the pollutants.  Ideally the source is located within the geographical area, but there are exceptions that should be considered.    This match is relatively easy to verify.
  • The methodology selected to abate the criteria pollutant must be able to dramatically reduce the concentration of the pollutant below the local regulatory agency’s performance threshold in a cost-effective way. This requirement can be the most difficult to meet because most abatement technologies deliver linear improvements in removal efficiency at exponentially increased costs once the technologies exceed their typical performance capabilities .

 

The six common criteria air pollutants are ozone (O3), particulate matter (PM), carbon monoxide (CO), nitrogen oxides (NOx: both NO and NO2), sulfur dioxide (SO2), volatile organic compounds (VOC’s), and lead (Pb) .

 

Regulatory compliance requirements vary by geographic area.  The EPA requires each state with a pollution problem to file a State Implementation Plan. The states then require local agencies within the state to file their own compliance plans to meet even more localized compliance challenges. As noted above, successful application of the profitable environmental compliance formula requires a match between a local regulatory compliance requirement for a specific criteria pollutant and the emission of that pollutant at a facility typically within the jurisdiction of that regulatory agency.

 

When the pieces come together, the results can be profound. The following is an example.

 

PILKINGTON GLASS EXAMPLE

A Pilkington Glass facility at Lathrop, California (within the San Joaquin Valley Unified Air Pollution Control District [SJVUAPCD] regulatory district) asked Pacific Rim Design & Development (PRDD) to propose a solution that would meet or exceed the local regulatory agency requirements for NOx, SO2, and particulate generated by a large natural gas-fired furnace. PRDD designed and then successfully pilot-tested a combination of abatement technologies at the Pilkington facility.  The pilot study performance results demonstrated removal efficiencies that removed virtually all NO, NO2, and SO2—an amount that dramatically exceeded the SJVUAPCD requirement for abatement of these criteria pollutants.  The PRDD technology also removed more than the requisite amount of particulate.

 

Thus a large number of credits are available, which may be sold on the open market.

 

Baseline source data for Pilkington facility

(Available from SJVUAPCD)

 

  • Pilkington plant makes approximately 75,000 standard cubic feet per minute of exhaust gas.
  • Gas temperature at base of stack is approximately1000°F.
  • Gas contains 130–150 pounds NOx per hour (Mostly NO).
  • Gas contains 15–40 pounds per hour of SOx.
  • Gas contains 10–13 pounds of particulate per hour.
  • Plant production is 500–550 tons of glass per day.
  • Plant operation is 24 hours per day.

Baseline SJVUAPCD Rule 4354 (compliance requirements):

  • Table 1 Tier 4 = 2.9 pounds NOx (measured as NO2) per ton of glass produced per day
  • Table 3 = 1.2 pounds SOx per ton of glass produced per day
  • Table 4 = 0.7 pounds PM10 per ton of glass produced per day

Removal efficiency of abatement system:

  • 99.9 percent removal efficiency for NO, NO2 and SO2
  • 89.5 percent removal efficiency for PM10

How much added profit was potentially available from reducing NOx & SO2 to nearly zero?

 

SJVUAPCD Rule 4354 -Table 1 Tier 4 = 2.9 pounds NOx (measured as NO2) per ton

 

Maximum NOx allowed:

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Source (Pilkington) untreated NOx emission:

news-articles2_clip_image004

 

Solve for percent NOx removal efficiency required to minimally meet regulatory requirement.

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Solve for percent excess NOx removal efficiency. If this can be economically removed, the value of the              credits for removing this excess NOx can be sold by Pilkington

news-articles2_clip_image010

 

Tons of NOx available to be reduced:

news-articles2_clip_image012

 

________________________

 

SJVUAPCD Rule 4354 – Table 3 = 1.2 pounds SOx per ton of glass produced per day

 

Following the same computational approach for NOx, the maximum SO2 allowed:

news-articles2_clip_image014

Source (Pilkington) untreated SO2 emission:

news-articles2_clip_image016

Solve for percent SO2removal efficiency required to minimally meet regulatory requirement.

news-articles2_clip_image018

 

Solve for percent excess SO2 removal efficiency

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This is the amount of SO2 in excess of the required SO2 removal requirement.  It can be sold for credits if a way to economically remove it can be found.

Tons of SO2 available to be reduced:

news-articles2_clip_image022

 

SJVUAPCD Rule 4354 – Table 4 = 0.7 pounds PM10 per ton of glass produced per day

 

Maximum PM10 allowed:

news-articles2_clip_image024

Source (Pilkington) untreated PM10 emission:

news-articles2_clip_image026

Solve for percent PM10 removal efficiency required to minimally meet regulatory requirement.

news-articles2_clip_image028

_____________________________

 

Solve for percent excess PM10 removal efficiency is available for sale

          news-articles2_clip_image030

Tons of PM10 available for Emission Credit Sale:

news-articles2_clip_image032

________________________

How much potential income is generated by using an efficient abatement system?

(The following numbers were not confirmed by Pilkington)

 

Brokers like BGC buy and sell ERCs generated by environmental compliance that is in excess of agency requirements.  The values for emission credits fluctuate on an open market much like the stock market.

 

In June 2013, when the original emission credit evaluation was made for the Pilkington project, the values offered by BGC were as shown in Exhibit 1:

news-articles2_clip_image002_0001

 

 

The calculations below are based on the average between the bid and ask price.

NOx = $43,000 per ton

SO2 = $20,000 per ton

PM10= $20,500 per ton

 

Estimated proceeds from sale of excess NOx credits:

news-articles2_clip_image036

Estimated proceeds from sale of excess SO2 credits:

news-articles2_clip_image038

 

Estimated value of excess PM10 credits:

news-articles2_clip_image040

 

Total estimated value of available excess emission credits:

           news-articles2_clip_image042

How much potential profit was available as a result of selecting a cost-effective abatement system?

 

PRDD, a licensed contractor and expert in abatement system design and fabrication, estimated the installed cost of abatement equipment required to produce the emission credits described above to be:

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Theoretical profit estimated by PRDD:

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IMPLICATIONS

The above is a real example of the economic potential power of this formula for profitable environmental compliance.  The theoretical profit of this example is the result of an adroit combination of parameters:

 

  • Quantity of  NOx and SO2 that required abatement
  • Efficiency and cost effectiveness of the abatement technology
  • Exchange rate for NOx and SO2 credits

 

Each situation is different and not all projects produce a profit.  This model is not limited to NOx and SO2; it also applies to the other regulated pollutants.

 

Typically, large industrial and utility projects have the propensity to meet the above requirements.

 

The identification of a cost-effective abatement system with high removal efficiency is the most challenging aspect of this equation.  There are variables beyond the obvious equipment cost and removal efficiency. An often-overlooked variable is the cost of treating any waste products generated by the abatement process. In liquid abatement systems this can come from contaminated waste liquids. In gas- phase reactions like selective catalytic reduction more costs can come from creation of particulate that is itself a criteria pollutant.

An often-overlooked variable is the cost of treating any waste products generated by the abatement process.

Pacific Rim Design & Development and other firms focus on GREEN in the design of abatement technology.  It is possible to have cost effective systems  which produce little or no waste products. Some projects even generate reaction byproducts with commercial value.  As an example, the Know-NOx process for NOx and SO2 abatement can produce commercially viable fertilizer (ammonium sulfate) and commercially viable mineral acids.

 

Robert Richardson, Ph.D., (robert@prdd.net) is president of Pacific Rim Design & Development Inc.

Gas-Phase Option for NOx abatement

Robert Richardson and PRDD are mentioned in this article about Gas-Phase option for NOx abatement.

Read about it here on page 12 of Chemical Engineering Magazine!

(Article by Scott Jenkins in the Chementator section)

Controlling Air Pollutants :: Chemical Engineering

Controlling Air Pollutants :: Chemical Engineering.

Dr. Richardson and Know-NOx are mentioned/quoted in this article by Joy Lepree of Chemical Engineering Magazine.

A Breath of Fresh Air

Dr. Richardson’s article entitled, “A Breath of Fresh Air”  was recently published over at The Green Economy’s website.

 

A Breath of Fresh Air: New Tech Promises Cleaner Skies

sun and clouds, sunny day, clean air, air quality, blue skies, clean air, air pollution, nitrogen oxide pollution,Clean air unites us across borders – the ability to breathe clean air is valuable to everyone. Everyone wins: plants, animals, people and our buildings benefit from the cost effective treatment of greenhouse gases at their source.

Read More…

SUR/FIN Paper Presentation

Dr. Richardson will be presenting a paper for the NASF SUR/FIN Manufacturing & Technology Conference on Tuesday, June 11th, 2013 in Rosemont, Illinois.

His paper is titled “NOx Scrubbing Technology Breakthrough” and will present research findings and practical results that address the treatment of problematic greenhouse gases: Nitrogen oxides (NOx) and sulfur oxides (SOx).

 NO & NO2 graphic

There are many ways to treat NOx and each has advantages and limitations. His process effectively treats both nitric oxide (NO) and nitrogen dioxide (NO2) in a way that is faster and more effective than other available technologies. His process also simultaneously oxidizes SOx.

The paper will compare and contrast these technologies from the perspective of applicability to the chemical milling industry.

 

For more information on the upcoming conference, go here: http://www.nasfsurfin.com/

The complete schedule can be found here: http://www.nasfsurfin.com/schedule.php

 

Innovative patented gas phase chlorine dioxide (ClO2) sensor dramatically improves process control.

A business relationship between Dr. Richardson of PRDD Inc. / Know-NOx LLC and Deep Reach Oxidation LLC (DRO) makes a powerful new patented gas phase ClO2 sensor available for a variety of applications.  This new patented gas phase ClO2 sensor was developed by DRO, in conjunction with Dr. Materer of Oklahoma State University for specialized applications.  Dr. Richardson and the DRO team are applying this technology to broad industrialized applications – beginning with process control for NOx (nitrogen oxide) abatement utilizing the Know-NOx process.

The new NOx abatement process developed by Know-NOx LLC will utilize this new patented gas phase ClO2 sensor with real time and confusion free analytical data over a wide detection range as one of the sensors used in the control of the Know-NOx process.

To read more about this innovative NOx treatment process, please visit our website: http://know-nox.biz/

This is the first of many proposed applications for the patented ClO2 sensor developed by Deep Reach Oxidation. Stay tuned for further developments in the future.

SUR/FIN Conference

Dr. Richardson will be attending the National Association for Surface Finishing (NASF) Manufacturing & Technology Tradeshow & Conference in Rosemont, Illinois on June 10th-12th, 2013.  This event will feature over 70 presentations and 67 speakers. Keynote presenters will include Rick Wire from Boeing, Ed Kanegsberg from BFK Solutions, Keith Legg from Rowan Technology Group, and of course, Robert Richardson from Know-NOx.  Dr. Richardson will be presenting information on his new and innovative NOx Scrubbing Technology Breakthrough.

Topics will range from Chemical Milling to Aerospace to Regulatory Issues.  There will be many international surface finish suppliers and producers during the event. This is the largest event in the Surface Finishing Industry and this year’s conference promises to be one of the best yet as they expect to draw over 1200 attendees!

If you are also planning to attend, please feel free to contact Dr. Richardson in advance (robert@know-nox.biz, 530-474-4819) or introduce yourself at the conference. He would very much enjoy meeting you.

Collaboration with the EPA

EPA_seal_for_profilesThe EPA and many clients with NOx compliance challenges are excited about Know-NOx technology. Know-NOx participation in research, testing, and problem resolution has earned favorable recognition with many local EPA districts.  The PRDD/Know-NOx technology appears to be the best available option for ambient temperature NOx abatement compliance with Part 50.11 of the National Primary & Secondary Ambient Air quality Standard for Oxides of Nitrogen. 

Not only is the Know-NOx technology orientation campaign helping clients understand the methodology and evaluate cost effective compliance options, it is helping the EPA understand a new and valuable NOx abatement option.

Contact us for additional information and a technical overview as it applies to your application.

Why Pacific Rim?

CompliancePhoto2@2012-12-21T04;35;58Pacific Rim Design & Development is a leader in environmental science and engineering. We specialize in cost effective, GREEN, Best Available Control Technology for airborne toxic and odor abatement process development. Through progressive research and pilot testing, we provide design alternatives to conventional technology that give our clients long term solutions that keep pace with the constantly tightening of regulations specific to air quality.