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The Global Chemical Industry: Catalyzing Growth and Addressing Our World’s Sustainability Challenges

March 10, 2019 | 164 views

Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modeling to UK companies and financial institutions expanding abroad. Since then, we have become one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on more than 200 countries, 250 industrial sectors, and 7,000 cities and regions. Our best-of-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact.

Spotlight

Akebia Therapeutics

Akebia Therapeutics, Inc. is a biopharmaceutical company headquartered in Cambridge, Massachusetts, focused on delivering innovative therapies to patients with kidney disease through hypoxia-inducible factor (HIF) biology. Akebia’s lead product candidate, vadadustat, is an investigational oral therapy in development for the treatment of anemia related to chronic kidney disease in both non-dialysis and dialysis patients. Akebia’s global Phase 3 program for vadadustat, which includes the PRO2TECT studies for non-dialysis patients with anemia associated with chronic kidney disease and the INNO2VATE studies for dialysis-dependent patients, is currently ongoing.

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Chemical Technology

The State of Intelligent Operations in Oil and Gas

Article | August 8, 2022

Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake. Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts.

Read More
Chemical Technology

Future-Proofing the Chemical Industry with Digitalization

Article | June 6, 2022

Over the next five to seven years, the chemical sector will place a greater emphasis on sustainability, and digitization will play a significant part in this. Reducing resource use, pollution, energy consumption, and waste are some of its main applications. Additionally, it will increase demand for a circular economy supported by IoT, AI, and other digital technologies. Some of the systems now in place or being used in the sector include autonomous solutions that enable lower energy usage, dispatching systems for effective logistics and strategies for sustainable power and fuel consumption. Chemical players making the switch to digital platforms have a chance to triumph if they move swiftly and update their operational models in accordance with a few common success characteristics. In fact, according to our study, making the correct decisions can increase total earnings before interest, taxes, depreciation, and amortization by 3 percent or more (EBITDA). The Next Step of Operational Excellence The same level of transformation is available with digital technology for optimal performance, together with success-enabling measures. The same level of corporate participation and realignment will also be necessary for the effective implementation of digital technology. Finance and telecoms were early leaders in adopting digital technology faster than the chemical sector, which has just recently started to move in more significant numbers toward digitalization. A circular economy in the sector is also being enabled by the use and evaluation of digital technology. The "Right to Fix" movement is being driven by governments and legislators in Europe and the US, and small and medium-sized businesses in the industry are expected to invest in technology that makes it easier to repair electronic items with the least amount of waste. On a side note, by enabling the re-use of resources and products throughout the supply chain, digitalization with lean manufacturing (LM) would enable businesses to improve operational excellence and create value, thereby supporting the circular economy goal. Conclusion Given its extensive safety and regulatory requirements, the chemical sector has evolved slowly. However, as the global economy changes, some skills will become obsolete and others essential. The interconnectedness of people, processes, and technology, as well as the requirement for real-time insight at the levels closest to the action, are among the basic principles of Industry 4.0. These values have existed for some time and are an extension of our teams' current operational excellence initiatives. Digital transformation is not a technology endpoint but rather the following stage in the process and business evolution as the chemicals industry advances continuously.

Read More
Chemical Management

Organic Catalyst Boasts Big Benefits

Article | July 14, 2022

An enzyme-mimicking catalyst opens a new route to important organic molecules such as glycolic acid and amino acids from pyruvate, report researchers in Japan. Moreover, the new catalyst is cheaper, more stable, safer and more environmentally friendly than conventional metal catalysts used in industry, they note, adding that it also displays the high enantioselectivity required by the pharmaceutical industry. “On top of these advantages, our newly developed organic catalyst system also promotes reactions using pyruvate that aren’t easily achievable using metal catalysts,” says Santanu Mondal, a PhD candidate in the chemistry and chemical bioengineering unit at Okinawa Institute of Science and Technology (OIST) Graduate University, Okinawa, Japan, and lead author of a study recently published in Organic Letters. “Organic catalysts, in particular, are set to revolutionize the industry and make chemistry more sustainable,” he stresses. The researchers use an acid and an amine mixture to force the pyruvate to act as an electron donor rather than its usual role as an electron receiver (Figure 1). Effectively mimicking how enzymes work, the amine binds to the pyruvate to make an intermediate molecule. The organic acid then covers up part of the intermediate molecule while leaving another part that can donate electrons free to react to form a new product. Currently, the organic catalyst system only works when reacting pyruvate with a specific class of organic molecule called cyclic imines. So, the researchers now are looking to develop a more-universal catalyst, i.e., one that can speed up reactions between pyruvate and a broad range of organic molecules. The challenge here is to try to make the electron-donating intermediate stage of pyruvate react with other functional groups such as aldehydes and ketones. However, different catalysts create different intermediates, all with different properties. For example, the enamine intermediate created by the researchers’ new reaction only reacts with cyclic imines. Their hypothesis, currently being investigated, is that creation of other intermediates such as an enolate, if possible, would achieve a broader pyruvate reactivity. In terms of cost, the researchers note that a palladium catalyst used in similar reactions is 25 times more expensive than their organic acid — which also is made from eco-friendly quinine. In addition, they believe scale-up of the process for industrial use definitely is possible. However, the researchers caution that the current amine-to-acid-catalyst loading ratio of 1:2 probably would need to be optimized for better results at a larger scale.

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Chemical Management

Demographics are reshaping petrochemicals trade flows, investment patterns and demand

Article | May 23, 2021

TEN YEARS AGO, fellowblogger Paul Hodgesand Ifirst highlighted the leading rolethat changing demographics would play in reshaping petrochemicals supply and demand. We have been emphasising the importance of demographics ever since. Demographics have, of course, always been a critical shaper of economies throughout human history. But during the last 70 years, there have been such major changes in demographics that the study of demographics must be at the very heart of your company’s strategy. The Babyboomer generation in the West led to a surge in demand as the rapid increase in babies born in the 1950s and early 1960s joined the workforce from the 1970s onwards. This helps explain high levels of inflation during that decade because too much demand was chasing too little supply. Another driver of inflation was the Middle East embargos against oil exports to the West because of the West’s support for Israel. Then came the 1990s and first the integration of Eastern Europe into the global economy. This helped dampen inflationary pressures because of the plentiful supply of workers in the east willing to work for low wages in export-focused factories. This reduced the cost of finished goods in the West. Next came Deng Xiaoping’s critically important“southern tour”in the early 1990s and China’s gradual integration into the global economy. China increasingly leveraged its very youthful population to again make cheap goods to export to the West. Hundreds of millions of young people were willing to migrate from the countryside to China’s coastal cities to work in export-focused manufacturing plants. The world began to talk about the “China price” and how it was further depressing global inflation.

Read More
Chemical Technology

Application of Chromatography in Various Industries is Changing the Game!

Article | August 8, 2022

Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake. Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts.

Read More
Chemical Technology

Organic Catalyst Boasts Big Benefits

Article | June 6, 2022

Over the next five to seven years, the chemical sector will place a greater emphasis on sustainability, and digitization will play a significant part in this. Reducing resource use, pollution, energy consumption, and waste are some of its main applications. Additionally, it will increase demand for a circular economy supported by IoT, AI, and other digital technologies. Some of the systems now in place or being used in the sector include autonomous solutions that enable lower energy usage, dispatching systems for effective logistics and strategies for sustainable power and fuel consumption. Chemical players making the switch to digital platforms have a chance to triumph if they move swiftly and update their operational models in accordance with a few common success characteristics. In fact, according to our study, making the correct decisions can increase total earnings before interest, taxes, depreciation, and amortization by 3 percent or more (EBITDA). The Next Step of Operational Excellence The same level of transformation is available with digital technology for optimal performance, together with success-enabling measures. The same level of corporate participation and realignment will also be necessary for the effective implementation of digital technology. Finance and telecoms were early leaders in adopting digital technology faster than the chemical sector, which has just recently started to move in more significant numbers toward digitalization. A circular economy in the sector is also being enabled by the use and evaluation of digital technology. The "Right to Fix" movement is being driven by governments and legislators in Europe and the US, and small and medium-sized businesses in the industry are expected to invest in technology that makes it easier to repair electronic items with the least amount of waste. On a side note, by enabling the re-use of resources and products throughout the supply chain, digitalization with lean manufacturing (LM) would enable businesses to improve operational excellence and create value, thereby supporting the circular economy goal. Conclusion Given its extensive safety and regulatory requirements, the chemical sector has evolved slowly. However, as the global economy changes, some skills will become obsolete and others essential. The interconnectedness of people, processes, and technology, as well as the requirement for real-time insight at the levels closest to the action, are among the basic principles of Industry 4.0. These values have existed for some time and are an extension of our teams' current operational excellence initiatives. Digital transformation is not a technology endpoint but rather the following stage in the process and business evolution as the chemicals industry advances continuously.

Read More
Chemical Management

Key Trends in the Digital Transformation of the Chemical Industry

Article | July 14, 2022

An enzyme-mimicking catalyst opens a new route to important organic molecules such as glycolic acid and amino acids from pyruvate, report researchers in Japan. Moreover, the new catalyst is cheaper, more stable, safer and more environmentally friendly than conventional metal catalysts used in industry, they note, adding that it also displays the high enantioselectivity required by the pharmaceutical industry. “On top of these advantages, our newly developed organic catalyst system also promotes reactions using pyruvate that aren’t easily achievable using metal catalysts,” says Santanu Mondal, a PhD candidate in the chemistry and chemical bioengineering unit at Okinawa Institute of Science and Technology (OIST) Graduate University, Okinawa, Japan, and lead author of a study recently published in Organic Letters. “Organic catalysts, in particular, are set to revolutionize the industry and make chemistry more sustainable,” he stresses. The researchers use an acid and an amine mixture to force the pyruvate to act as an electron donor rather than its usual role as an electron receiver (Figure 1). Effectively mimicking how enzymes work, the amine binds to the pyruvate to make an intermediate molecule. The organic acid then covers up part of the intermediate molecule while leaving another part that can donate electrons free to react to form a new product. Currently, the organic catalyst system only works when reacting pyruvate with a specific class of organic molecule called cyclic imines. So, the researchers now are looking to develop a more-universal catalyst, i.e., one that can speed up reactions between pyruvate and a broad range of organic molecules. The challenge here is to try to make the electron-donating intermediate stage of pyruvate react with other functional groups such as aldehydes and ketones. However, different catalysts create different intermediates, all with different properties. For example, the enamine intermediate created by the researchers’ new reaction only reacts with cyclic imines. Their hypothesis, currently being investigated, is that creation of other intermediates such as an enolate, if possible, would achieve a broader pyruvate reactivity. In terms of cost, the researchers note that a palladium catalyst used in similar reactions is 25 times more expensive than their organic acid — which also is made from eco-friendly quinine. In addition, they believe scale-up of the process for industrial use definitely is possible. However, the researchers caution that the current amine-to-acid-catalyst loading ratio of 1:2 probably would need to be optimized for better results at a larger scale.

Read More
Chemical Management

Demographics are reshaping petrochemicals trade flows, investment patterns and demand

Article | May 23, 2021

TEN YEARS AGO, fellowblogger Paul Hodgesand Ifirst highlighted the leading rolethat changing demographics would play in reshaping petrochemicals supply and demand. We have been emphasising the importance of demographics ever since. Demographics have, of course, always been a critical shaper of economies throughout human history. But during the last 70 years, there have been such major changes in demographics that the study of demographics must be at the very heart of your company’s strategy. The Babyboomer generation in the West led to a surge in demand as the rapid increase in babies born in the 1950s and early 1960s joined the workforce from the 1970s onwards. This helps explain high levels of inflation during that decade because too much demand was chasing too little supply. Another driver of inflation was the Middle East embargos against oil exports to the West because of the West’s support for Israel. Then came the 1990s and first the integration of Eastern Europe into the global economy. This helped dampen inflationary pressures because of the plentiful supply of workers in the east willing to work for low wages in export-focused factories. This reduced the cost of finished goods in the West. Next came Deng Xiaoping’s critically important“southern tour”in the early 1990s and China’s gradual integration into the global economy. China increasingly leveraged its very youthful population to again make cheap goods to export to the West. Hundreds of millions of young people were willing to migrate from the countryside to China’s coastal cities to work in export-focused manufacturing plants. The world began to talk about the “China price” and how it was further depressing global inflation.

Read More
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Spotlight

Akebia Therapeutics

Akebia Therapeutics, Inc. is a biopharmaceutical company headquartered in Cambridge, Massachusetts, focused on delivering innovative therapies to patients with kidney disease through hypoxia-inducible factor (HIF) biology. Akebia’s lead product candidate, vadadustat, is an investigational oral therapy in development for the treatment of anemia related to chronic kidney disease in both non-dialysis and dialysis patients. Akebia’s global Phase 3 program for vadadustat, which includes the PRO2TECT studies for non-dialysis patients with anemia associated with chronic kidney disease and the INNO2VATE studies for dialysis-dependent patients, is currently ongoing.

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Chemical Technology

With the Acquisition of Agiplast, Arkema Strengthens Its Commitment to the Circular Economy

ARKEMA | May 25, 2021

With the planned acquisition of Agiplast, a leader in the regeneration of high-performance polymers, especially specialty polyamides, and fluoropolymers, Arkema is going to be ready to offer a full service to customers in terms of materials circularity, addressing growing market expectations during this field. This project, which contributes to the sustainable development of the polymer industry, is perfectly in line with Arkema’s sustainable growth strategy. Arkema plans to accumulate Agiplast, a company specialized in the regeneration of high-performance polymers, and its historical partner in recycling operations. the company, with annual sales of around €15 million, operates a plant in Italy and has 32 employees. Agiplast’s strong know-how in mechanical recycling technologies will enable Arkema to supply top-quality recycled polymers to its customers. In October 2019, Arkema, the world leader in bio-based high-performance polymers, had already launched Virtucycle®, an ambitious program with Agiplast aimed toward developing loops for the gathering and regeneration of high-performance polymers while minimizing CO2 emissions. With this acquisition, Arkema is going to be the primary fully integrated high-performance polymer manufacturer offering both bio-based and recycled materials to deal with the challenges of resource scarcity and end-of-life products. This bolt-on acquisition is thus in line with Arkema’s CSR and sustainable growth strategy, and especially the transition to a circular economy. The deal is expected to close in June 2021. About ARKEMA Building on its unique set of experience in materials science, Arkema offers a portfolio of first-class technologies to address the ever-growing demand for new and sustainable materials. With the ambition to become 2024 a pure player in Specialty Materials, the Group is structured into 3 complementary, resilient, and highly innovative segments dedicated to Specialty Materials -Adhesive solutions, Advanced Materials, and Coating Solutions- accounting for a few 82% of Group sales, and a well-positioned and competitive Intermediates segments. Arkema offers cutting-edge technological solutions to satisfy the challenges of, among other things, new energies, access to water, recycling, urbanization, and mobility and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around €8 billion in 2020 and operates in some 55 countries with 20,600 employees worldwide

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Chemical Management

Huntsman Completes the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio

Huntsman | January 20, 2021

Huntsman Corporation (NYSE: HUN) today announced it completed the acquisition of Gabriel Performance Products (Gabriel), a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from Audax Private Equity. Huntsman paid $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

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Raw Materials

Conservation Groups Sue EPA for Failure to Adequately Protect against Oil, Methane Gas Industry

Conservation Groups | January 18, 2021

Two conservation groups have launched a lawsuit to fight the EPA’s “failure to require adequate pollution controls for the oil and methane gas industry” in Chicago and areas of California. The Center for Biological Diversity and the Center for Environmental Health point out that two Canadian provinces require that the oil and methane gas industry install zero emission pneumatic controllers. “There is no reason the EPA cannot adopt this readily available technology,” says Kaya Sugerman with the Center for Environmental Health. The EPA’s guidelines for oil and methane gas production recommend pneumatic controllers that emit volatile organic compounds, when pneumatic controllers that do not emit any of these compounds are in widespread use at production sites and compressor stations in both the US and Canada, the groups argue. “Taking action to increase the use of zero emission controllers has a co-benefit of reducing methane, a dangerous greenhouse gas that is 87 times more damaging for climate change than carbon dioxide,” the groups say. They point out that, according to the EPA’s Greenhouse Gas Inventory, pneumatic controllers are the largest source of methane from the oil industry and the second-largest source of methane from the methane gas industry.

Read More

Chemical Technology

With the Acquisition of Agiplast, Arkema Strengthens Its Commitment to the Circular Economy

ARKEMA | May 25, 2021

With the planned acquisition of Agiplast, a leader in the regeneration of high-performance polymers, especially specialty polyamides, and fluoropolymers, Arkema is going to be ready to offer a full service to customers in terms of materials circularity, addressing growing market expectations during this field. This project, which contributes to the sustainable development of the polymer industry, is perfectly in line with Arkema’s sustainable growth strategy. Arkema plans to accumulate Agiplast, a company specialized in the regeneration of high-performance polymers, and its historical partner in recycling operations. the company, with annual sales of around €15 million, operates a plant in Italy and has 32 employees. Agiplast’s strong know-how in mechanical recycling technologies will enable Arkema to supply top-quality recycled polymers to its customers. In October 2019, Arkema, the world leader in bio-based high-performance polymers, had already launched Virtucycle®, an ambitious program with Agiplast aimed toward developing loops for the gathering and regeneration of high-performance polymers while minimizing CO2 emissions. With this acquisition, Arkema is going to be the primary fully integrated high-performance polymer manufacturer offering both bio-based and recycled materials to deal with the challenges of resource scarcity and end-of-life products. This bolt-on acquisition is thus in line with Arkema’s CSR and sustainable growth strategy, and especially the transition to a circular economy. The deal is expected to close in June 2021. About ARKEMA Building on its unique set of experience in materials science, Arkema offers a portfolio of first-class technologies to address the ever-growing demand for new and sustainable materials. With the ambition to become 2024 a pure player in Specialty Materials, the Group is structured into 3 complementary, resilient, and highly innovative segments dedicated to Specialty Materials -Adhesive solutions, Advanced Materials, and Coating Solutions- accounting for a few 82% of Group sales, and a well-positioned and competitive Intermediates segments. Arkema offers cutting-edge technological solutions to satisfy the challenges of, among other things, new energies, access to water, recycling, urbanization, and mobility and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around €8 billion in 2020 and operates in some 55 countries with 20,600 employees worldwide

Read More

Chemical Management

Huntsman Completes the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio

Huntsman | January 20, 2021

Huntsman Corporation (NYSE: HUN) today announced it completed the acquisition of Gabriel Performance Products (Gabriel), a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from Audax Private Equity. Huntsman paid $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

Read More

Raw Materials

Conservation Groups Sue EPA for Failure to Adequately Protect against Oil, Methane Gas Industry

Conservation Groups | January 18, 2021

Two conservation groups have launched a lawsuit to fight the EPA’s “failure to require adequate pollution controls for the oil and methane gas industry” in Chicago and areas of California. The Center for Biological Diversity and the Center for Environmental Health point out that two Canadian provinces require that the oil and methane gas industry install zero emission pneumatic controllers. “There is no reason the EPA cannot adopt this readily available technology,” says Kaya Sugerman with the Center for Environmental Health. The EPA’s guidelines for oil and methane gas production recommend pneumatic controllers that emit volatile organic compounds, when pneumatic controllers that do not emit any of these compounds are in widespread use at production sites and compressor stations in both the US and Canada, the groups argue. “Taking action to increase the use of zero emission controllers has a co-benefit of reducing methane, a dangerous greenhouse gas that is 87 times more damaging for climate change than carbon dioxide,” the groups say. They point out that, according to the EPA’s Greenhouse Gas Inventory, pneumatic controllers are the largest source of methane from the oil industry and the second-largest source of methane from the methane gas industry.

Read More

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