Investments in Boilers and Steam Capacity in the Chemical Processing Industry Remains Strong

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Researched by Industrial Info Resources (Sugar Land, Texas). Steam and heat generated from process and utility boilers plays a significant role in the production of chemicals within the chemical processing industry (CPI). The cost to produce steam and energy often influences the profitability of the end products manufactured and ultimately the bottom line for the CPI plant owner. At this time last year Industrial Info was tracking approximately $80 million in future project activity aimed at improving or increasing steam production in CPI plants through boiler related projects For details, view related May 4, 2006 article - Energy Concerns Drive an Increase in Boiler Additions and Replacements in the Chemical Processing Industry. Using the same criteria to monitor upcoming project expenditures, Industrial Info is currently tracking over $96 million in boiler projects at CPI plants located in the United States and Canada with plans to begin construction over the next two years. Project activity and total investment values (TIV) have both picked up significantly since last year along with the average project value which now approaches $4 million each compared to $2 million per project last year.

Click on the image at right to view an analysis of CPI plant boiler projects by status.

As the cost of fuel and feedstock continues to rise at alarming rates, the ability to produce low cost steam for use in the production process becomes an increasingly important priority for the CPI that requires large amounts of steam. Most large petrochemical complexes have the ability to capture lost heat from their processes through the addition of waste heat boilers providing the most economical method of producing process steam in most cases.

Looking closely at the future boiler projects currently identified, at least $20 million of the total is planned for the addition of new boilers and nearly $47 million is planned for the replacement of existing boilers. The replacement of older equipment offers not only the potential for more cost effective steam production, but also the potential of reductions in NOx or other emissions. Approximately $17 million of the total spending identified is aimed at just those types of projects, emission reductions as part of MACT or other regional compliances programs. The remainder of spending, nearly $14 million is expected to be spent on boiler upgrades including fuel conversions and major tube replacement projects.

Cancarb Limited is moving forward with plans to replace the pre-heater section of the waste heat boiler located in its Medicine Hat, Alberta carbon black plant. Industrial Info has been tracking plans for this project since February 2005 and earlier this year reported that Innovative Steam Technologies (Cambridge, Ontario) will provide the major components of this project which is scheduled to be complete during a plant-wide maintenance turnaround in September of this year. INEOS Incorporated is planning for the replacement of two large boilers in its polypropylene plant located in La Porte, Texas beginning later this year for a startup during the plant’s planned turnaround early 2008 with the hopes of increasing the units overall production through efficiency gains.

View Plant Profile - 1027449 1000153
View Project Report - 56000901 56001174 01009862 01011400

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