Friday, June 02, 2023

Electric mining in the digital age: A workforce revolution

Hugh Secord| June 1, 2023 
CANADIAN MINING JOURNAL

Change is a good thing. Change, however, is not an easy thing

Machines replacing humans in the workplace has been a perpetual concern since the Industrial Revolution. In the early 1800s, the Luddites, a “radical” organization of textile workers protested the use of machinery in the industry as it effectively eliminated many of the craft jobs and replaced them with machines and unskilled factory labour. Moreover, the machinery advanced productivity and resulted in the factories needing fewer workers than the craftspeople that were displaced. The Luddites sabotaged the machinery to try to impede progress. In the end, they failed, but history will remember them. Today, anyone who seemingly resists the adoption of technology is often referred to as a Luddite.



Robotics and automation in general will continue to displace workers and result in some groups finding themselves unemployed. This is an unfortunate but inevitable consequence of finding better ways to produce more with less. However, before passing judgment as to whether this is a good thing or bad thing, we need to look at both the positive and the negative impact new technology will have on the workforce.

In mining, one of the immediate advantages to advanced technology whether in the form of autonomous haul vehicles or remote-controlled mining machines is that it removes workers from the dangers they could be exposed to at the workface. This could include exposure to hazardous substances (e.g., radiation in a uranium mine); noise; dust; loose falling material; moving heavy equipment; poor air quality; or any number of other hazards specific to what is being mined. Removing humans from the workface is the ultimate mitigating step to protect workers from the inherent dangers often associated with mining.

Safety is the key rationale for deploying new technology that eliminates the human operator. Notwithstanding, one should expect a dispute with organized labour no matter how compelling the safety argument is. Several years ago, I spoke to members of the Longshoremen’s Union on the west coast about the then relatively new technology [Hands Free Mooring (HFM)] that allowed a port operator to land a ship and secure it to a wharf completely by remote control and with no human intervention using giant suction cups. HFM units reach out to secure a ship during dockage, utilizing vacuum pads instead of traditional wire or rope lines. Ships are held by the mooring units which move up or down on rails recessed within the dock wall as the ship moves up and down with tides and waves. Once the ship is finished being loaded or unloaded as the case may be, the mooring units gently push the ship off the dock and release their grip, allowing the ship to proceed on its journey.

The Longshoremen Union objected to the use of this technology at the time because it represented a clear threat to jobs. However, the jobs that would be eliminated were amongst the most dangerous in the world. Many people are seriously injured or killed in the process of mooring ships with heavy lines or cables. The counter argument is not always rational when we are talking about something that radically changes how work is performed. More than just threatening jobs, technology challenges a way of life and a work culture for those dock workers.

This cultural disruption has the knock-on effect of changing how people in certain walks of life see themselves. The Longshoremen members see themselves as hard-working tough individuals who face danger in the performance of their duties. When a gang of these rugged individuals can be replaced by a single operator sitting in a control room which could be several hundred kilometers away, the impact can hardly be anything less than emotional. It takes away not just employment but eradicates identity.

Similarly, continuous mining methods using remote controlled boring machines and automated conveyor systems not only dramatically improves safety and productivity, but it also changes the very nature of mining. These methods replace face drill operators, explosive technicians, scalers roof bolters, and more. These workers are replaced by control room operators who are shielded from the noise, dust, and other inherent hazards. It is dramatically different work and will completely change the culture of mining.

The degree of technological advancement that is available in the mining sector will have a profound effect on how the industry is perceived. Mining is often seen as a rough profession suitable to certain hearty souls who relish the inherent danger that one implicitly associates with going underground and digging out valuable minerals. The new face (pun intended) of mining is much different.

The modern miner is a technician operating sophisticated equipment in the safety and comfort of a control room far removed from danger. The work environment is conducive to attracting and retaining a different kind of workforce that is more diverse. This is a key point. The transformation in the nature and makeup of the workforce is an important challenge for human resource practitioners. It is not as simple as retraining people in new technologies. It is truly embracing a complete revamping of the workforce mix and therefore operating culture.

This cannot reasonably be accomplished incrementally. It is about revolution not evolution. In the initial example above, the sabotage associated with the Luddite upheaval was an inevitable and arguably necessary reaction to dramatic changes caused by the introduction of revolutionary new technology. It is nice to sit in the comfort of our offices and imagine the front-line workers accepting just how wonderful their lives are going to be once they realize the positive impact the technology is going to have. Alternatively, one might think that the offer of a comfortable retirement package will ease some displaced workers into a new sedentary lifestyle. However, that is not the reality we live in. The introduction of technology disrupts lives and challenges how people identify with the work they currently perform.

With new technology, there will be new and interesting jobs. The front-line worker becomes a technical operator and is freed from manual labour, and other jobs emerge at the front line that require master crafts people of the highest order. Robots, electrical vehicles, autonomous haul trucks, and all matter of new equipment will require maintainers with extraordinary skills that largely do not exist today.

Certainly, given today’s digitization, many pieces of equipment are designed with modules that allow for quick maintenance and repair, and the work can be performed by semi-skilled technicians (think of an F1 pitstop). But at the other end of the scale, we will need problem solvers who have programming skills on top of deep mechanical knowledge on top of a sophisticated understanding of systems. These “masters” likely will have two or more trade tickets and a variety of experiences and will command a fortune in wages because of their superior skill set.

So, while many front-line jobs in mining will be replaced by machines and systems, we will see the emergence of a new class of workers who will be highly trained and qualified. The emergence of these technical roles will change the nature of this kind of work and disrupt the way these jobs are viewed by the public.

If we collectively manage the future transformation correctly, we will have to face the reality that a large group of people will be displaced and will be very unhappy. They will not only be displaced by machines, but they will also make way for a new class of worker who will command respect because of the significant investment they have made in learning a trade that not long ago did not exist. We will find these technical roles in mining, in the oil and gas sector, in the broader power sector (including renewables), manufacturing, supply chain, and anywhere that technology can be used to reduce exposure to danger and increase productivity by replacing people at the workface.

Hugh Secord is chief strategist at Oakbridges.
WHERE EV IS ESG
Komatsu gathers GHG alliance for look at battery-powered haul truck

Komatsu gathered members of the company’s Greenhouse Gas (GHG) Alliance at the Komatsu Arizona proving grounds (AZPG) in mid-May to share progress […]

By Canadian Mining Journal 
Staff June 1, 2023 

Komatsu’s GHG alliance has grown to include Antofagasta Minerals, BHP, Boliden, Codelco, Freeport-McMoRan, Grupo Mexico, Kinross, Rio Tinto, and Teck Resources. Komatsu photo

Komatsu gathered members of the company’s Greenhouse Gas (GHG) Alliance at the Komatsu Arizona proving grounds (AZPG) in mid-May to share progress and highlight knowledge gained since its EVX battery-powered haul truck was introduced two years ago.

Alliance members had the opportunity to observe advancements made over the past year related to the performance and sizing of batteries and to learn how Komatsu plans to leverage the company’s trolley system to advance understanding of battery truck performance in a dynamic charging environment. Members also had the opportunity to engage in a discussion on recent progress within the regulatory environment. Specifically, alliance members saw the upgraded EVX (battery) truck running a circuit on battery, static charging of the battery with the truck hooked up to the trolley line via pantograph, and a run up the trolley line highlighting the battery being charged and increased speed in the dynamic environment.

The GHG alliance was created to bring together mining industry leaders to work toward a shared goal of delivering zero-emissions equipment solutions. Alliance members have since been working to advance Komatsu’s power agnostic truck concept for a haulage vehicle that can run on a variety of power sources including diesel engine, battery, or hydrogen fuel cells with both static and dynamic charging capabilities.

Komatsu says that since the alliance was formed, membership has steadily grown and now includes Antofagasta Minerals, BHP, Boliden, Codelco, Freeport-McMoRan, Grupo Mexico, Kinross, Rio Tinto, and Teck Resources.

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.
Google leads funding round for Indian space startup Pixxel

Reuters | June 1, 2023 |

Scout satellite. (Reference image by the European Space Agency, Facebook).

Alphabet Inc’s Google is leading a $36 million funding round for Bengaluru-based Pixxel, a satellite-image startup, in the first major investment in the Indian space sector since the government launched its privatization policy in April.


Pixxel, founded in 2019, is building a constellation of satellites that have the ability to identify mineral deposits or the productivity of crops by analyzing the spectral signature of an image.


Miner Rio Tinto Ltd and Australian agritech company DataFarming are clients, Pixxel said.


The startup has raised more $71 million from investors including Accenture PLC. Pixxel did not specify how much Google had invested or the valuation it reflected.

Google in India did not immediately respond to questions about the investment.

Founder and chief executive Awais Ahmed said Pixxel would be “the most valued space tech company in India after this investment”.

That had been rocket and launch provider Skyroot Aerospace, valued at an estimated $163 million, according to Tracxn, which tracks startups.

“We work with satellite data and Google does a lot of work around that with agriculture and environment,” Ahmed told Reuters. “They also have Google Earth … so a combination of that led to them seeing a benefit.”

Pixxel is among the many private companies looking for a fillip since India opened the space sector, encouraging startups to deliver broadband services like Starlink and to power applications like tracking supply chains.

The government announced its private-sector space policy framework in April.

The funding comes at a time when startups globally have struggled to raise funds. Space startups, in particular, have come under pressure after the bankruptcy of Richard Branson’s Virgin Orbit launch company.

Ahmed said the funding would be used to build out its satellite network. Pixxel is readying six satellites for launch next year to add to the three it has now and looking to hire more engineers for its analytics.

Ahmed has said he was inspired to launch a space startup from a visit Elon Musk’s SpaceX as part of a student competition to build a demonstration “hyperloop” transport pod.

He and co-founder Kshitij Khandelwal set out to build an AI model that could use satellite data to predict crop yields, detect illegal mining and track natural disasters.

They launched Pixxel when they concluded existing commercial satellite images did not provide enough detail. Pixxel’s satellites take in and analyze a wide spectrum of light instead of just assigning primary colours to each pixel, a technology known as hyperspectral imaging.

(By Nivedita Bhattacharjee; Editing by Kevin Krolicki and Christopher Cushing)

 

Five Methanol-Fueled Containerships with Wingsails Ordered in Korea

wind powered containership
Zéphyr & Borée developed the design for a containership to use sails and to be methanol-fueled (Zéphyr & Borée)

PUBLISHED MAY 24, 2023 6:27 PM BY THE MARITIME EXECUTIVE

 

French startup Zéphyr & Borée is widely believed to be behind an order placed at South Korea’s Hyundai Mipo Shipyard which calls for the construction of five innovative containerships. While the company has not officially confirmed the order, it is believed that they are proceeding with an initial class of five feeder ships that will deploy the wingsail design as well as methanol-fueled engines to achieve one of the first zero-emission containerships.

The shipyard in a stock exchange filing on May 22 reported an order for five containerships valued at a total of $311 million to an unnamed shipping company in Europe. The price per ship is reported at $62.2 million, nearly double the standard pricing for feeder ships. Alphaliner is speculating that a select group of shippers is willing to pay a premium to be among the pioneers of zero-emission shipping. On the company’s website they wrote that the sails would add 20 percent to the cost of building the ship.

The International Windship Association tweeted out a congratulatory message to Zéphyr & Borée. “This contract is backed by a number of French shippers signing long-term shipping commitments. We look forward to future announcements of further builds in the pipeline,” they wrote.

It is believed each of the vessels will have a capacity of 1,300 TEU. Delivery according to the shipyard begins in 2025 and will be completed before June 30, 2026. Alphaliner speculates that the order is to be followed by a second for similar-sized ships to form a class of 10 vessels. It is unclear if Zéphyr & Borée plans to run the ships or partner with one or more carriers to maintain their operations.

 

Canopee due to be fitted with the sails by summer 2023 will be a proof of concept demonstration aboard an in-service vessel (Ariane Group)

 

BV awarded an Approval in Principle (AiP) to Zéphyr & Borée at the end of 2021 for a design of an open-top 1,800 TEU containership. At the time it was reported to be a 607-foot-long with five cargo holds, mostly open-top. The vessel’s propulsion system they reported would be assisted by eight sails provided by CWS (Computed Wing Sails). The website describes the Meltem design as being 25,000 DWT. The design they say would offer price competitive shipping and carry loads equal to similar sized ships without sails.

The order comes as the company prepares for its first proof of concept demonstrations on a large, in-service vessel. The Canopée was delivered at the end of 2022 and is currently undergoing its trials and commissioning. The vessel was specifically designed for the French aerospace company Ariane Group to transport components for the Ariane 6 rockets. It is capable of carrying large, fragile loads and navigating the shallow waters to the launch site in French Guiana.

Measuring 397 feet with a beam of 72 feet, the vessel is also an open-top design. Ariane reports it is 10,000 dwt and will have a speed of 17 knots. It completed its first Atlantic proving voyage in January 2023 and is due to be fitted with the four articulated wingsails by the summer.
 

Canopee was delivered at the end of 2022 and is currently doing trial trips and commissioning (Ariane)




















Xeneta: Long-Term Container Rates Collapsed with More Pain Ahead

long-term container freight rates
Long-term contracted freight rates collapsed in the ninth consecutive month of declines

PUBLISHED MAY 31, 2023 6:08 PM BY THE MARITIME EXECUTIVE

 

Contracted long-term ocean freight rates collapse during May marking the ninth consecutive month of declines. The expiration of the 12-month contracts, which traditionally start over each May, contributed in large part to a dramatic decline of 27.5 percent and a further demonstration that the era of high demand, lack of equipment, disrupted supply chains, and congestion is over according to benchmarking and analytics platform Xeneta.

“If industry observers were left wondering just how bad it could get for carriers after the 10 percent fall in long-term rates seen in April, here’s the answer,” comments Patrik Berglund, CEO of Xeneta. “Monthly declines have become the ‘new normal’ at present, but this is a collapse,” he said while noting, “It paints a bleak picture of the state of the industry.”

Xeneta publishes a monthly Shipping Index (XSI), which charts real-time global rates developments. They report that May was the largest-ever monthly fall recorded on the XSI. “The global XSI is now down 42 percent year-on-year,” Berglund highlights, “and with continued macroeconomic uncertainty, evaporating trade volumes, and a wider sense of geopolitical flux, short-term industry omens do not suggest a move ‘back into the black’ at any time soon.”

Berglund says the decline is especially noteworthy as it marks the first-time long-term rates have recorded a year-on-year decrease since late 2020. 

While all the global markets showed weakness, Xeneta highlights that the U.S. import index collapsed by just over 40 percent in May and has now lost 54.6 percent of its value since peaking in October last year. In dollar terms, Xeneta equates this to the average contracted price of shipping containers between the Far East and the U.S. West Coast falling by $6,140 per FEU year-on-year (a 76 percent drop). 

The scale of the decline in the U.S. import index was matched by that in Far East exports, with that segment falling 38.6 percent in May. This segment has now lost more than half its value in 2023, and is 58.5 percent down year-on-year. 

Contacted agreements for Europe failed to escape a “bloody month” for the industry according to Xeneta. The import benchmark moved down 11.1 percent from April (32.6 percent since the start of the year), while its export counterpart fell by 15.9 percent (matching the decline from the previous month).

“This is very worrying for carriers, who are working overtime to manage capacity - adjusting vessel speeds, restructuring services, and blanking sailings - and all to no avail,” said Berglund. “There’s very little the carriers can do to protect their precious long-term rates in this kind of climate, especially when we consider that the vessels ordered during the pandemic ‘boom’ are now starting to swell overall industry capacity.”

With demand for containerized exports out of the Far East falling, and a lack of demand for imports into the U.S., Berglund believes it is a “retreat” in the two forces that traditionally drive global trade growth. He notes that those carriers with the greatest exposure to long-term contracts will feel increasing financial pain but also expects that there are more developments on the horizon in what will be a very challenging year for the carrier community.



CRIMINAL CAPITALI$M

Singapore Investigating Seatrium on Pre-2015 Brazilian Corruption Case

Seatrium corruption investigation
Corruption allegations stem from Sembcorp Marine's Brazilian shipyard and activities before 2015 (file photo)

PUBLISHED JUN 1, 2023 12:11 PM BY THE MARITIME EXECUTIVE

 

Seatrium, the successor company formed in Singapore after the merger of Sembcorp Marine and Keppel Offshore & Marine, confirmed that it has been notified that Singapore’s Corrupt Practices Investigation Bureau has started a new investigation which the company links to the pre-2015 activities of Sembcorp Marine’s subsidiary in Brazil. Both companies independently prior to the merger have been linked to a far-reaching bribery and corruption case in Brazil known as Operation Car Wash in which illegal payments were used to receive lucrative contracts from Petrobras and others in the oil and gas sector.

The Corrupt Practices Investigation Bureau issued a brief statement confirming that “Acting on information received,” it had commenced investigations “against Seatrium and individuals from Seatrium Limited on alleged corruption offenses that occurred in Brazil.” The bureau said as is its normal practice it would provide no further details while analysts highlighted that these types of investigations are typically long and drawn out. They noted however that it would “cast a shadow” over the company.

Seatrium as is a normal business practice filed Thursday morning for a suspension of its trading on the Singapore stock exchange prior to the announcement causing a brief panic in the markets. They issued a statement confirming the investigation and saying the company would cooperate fully. They said they believed it related to Sembcorp Marine and events before 2015, predating the February 2023 merger with Keppel Offshore & Marine.

The company later responded to questions from the Singapore Exchange Securities Trading saying that it was not aware of the identity of the individuals who were being investigated for alleged corruption offences. “As far as the company is aware, investigations are ongoing and no formal charges have been made against any of the key officers of the company.”

The case has made headlines over the years with both Sembcorp Marine and Keppel O&M making payments to settle the old allegations. In 2012, Sembcorp Marine won seven drillship contracts from Brazil’s Sete Brasil valued at $5.6 billion. Two years later, the investigations began in Brazil into allegations of corruption and bribery. An agent working for the company’s Brazilian subsidiary, Estaleiro Jurong Aracruz, was jailed in 2020 on charges of bribery and money laundering. Sembcorp Marine later settled with Sete.

Brazil said in March 2023 that it had opened a new investigation into the case. The wider Operation Car Wash has been described as one of Brazil’s largest corruption scandals involving a broad range of politicians and companies. Reports said that the investigation into Sembcorp Marine’s involvement however had been suspended in April.

Separately, in December 2022 Keppel O&M announced it was paying $65 million to settle charges related to corruption by former foreign consultants to its shipyard operations. It was alleged that six Keppel O&M managers had conspired to make approximately $55 million in illegal payments through the business consultants to win contracts from Petrobras. Singapore’s Corrupt Practices Investigation Bureau issued a stern warning but stopped short of any criminal charges.

Seatrium is emphasizing that it believes this is a continuation of the old events dating back a decade ago. Analysts point out that the company has a strong order book valued at approximately S$24 billion (US$17 billion). The company installed a new management team and outlined revisions to its strategy after the merger. It looks to build on its strong legacy in the oil & gas sector as well as expand into new opportunities in offshore wind and other engineering sectors. 

 

Netherlands Commits to Financial Aid to Help Ports Install Shore Power

Netherlands shore power
The Netherlands' major ports will be eligible for support to install shore power capabilities (North Sea Ports file photo)

PUBLISHED MAY 26, 2023 11:37 AM BY THE MARITIME EXECUTIVE

 

The Dutch government is committing to provide financial support for the country’s ports to adopt and expand the use of shore power. The initiative recognizes the significant investments necessary to meet the pending EU mandates that require the use of shore power as well as the goal to improve the environment around the country’s seaports.

By 2030, EU ports are required to have shore power available for ships greater than 5,000 gross tons covered by the Alternative Fuels Infrastructure Regulation. This will include containerships, cruise ships, passenger ships, and combined passenger and cargo ships. Government officials recognize that these large ships will require large amounts of power while on dock.

The consulting group Branche Organisatie Zeehavens (BOZ), formed to liaise between the ports and government, previously calculated that approximately 270 MW of shore power capacity will have to be installed in the ports for ships covered by AFIR. They estimate the required investment at approximately $325 million. BOZ chairman Boudewijn Siemons notes that the installation of shore power despite its environmental benefits does not translate into a sound business case for terminals and shipping companies.

The Netherlands’ Ministry of Infrastructure seeks to help with this challenge by committing to a public-private partnership with BOZ to allocate $150 million in the coming years to help realize shore power installations in seaports. In addition, another $43 million will be provided from the country’s climate fund.
 
“In order to achieve the climate goals, it is essential that all sectors make their contribution, including the maritime sector,” said Minister for Infrastructure and Water Management Mark Harbers. “At the same time, this requires huge investments. I am pleased that with this subsidy scheme we can offer the sector a helping hand and further stimulate the installation of shore power. This not only leads to environmental benefits but also to less noisy generators that run while a ship is berthed. And hopefully, there will be room for development in the ports and new climate projects.”

The project will focus primarily on the Netherlands’ five major seaports, Rotterdam, Amsterdam, Groningen, Moerdijk, and North Sea Port (Vlissingen, Terneuzen, and Ghent). The resources for shore power are mainly intended for terminals where AFIR ships moor, but other shore power projects for maritime shipping will also be eligible for the subsidy.

Future Cost-Competitiveness of Hydro-Kinetic Turbines

tidal turbine
Courtesy British High Commission in Canada

PUBLISHED MAY 28, 2023 10:37 PM BY HARRY VALENTINE

 

Some 10 years ago, a submerged hydro-kinetic turbine was installed in the swift current of a section of the St. Lawrence River, southwest of Montreal, Canada. The power authority of Quebec eventually discontinued the demonstration and declared that the technology was not cost competitive against conventional hydroelectric power generation when measured in terms of dollars per kilowatt-hour. The future of hydro-kinetic turbine technology depends on greater output at competitive cost against other renewable technologies.

Introduction

Cost-comparisons undertaken involving the repair and maintenance of machinery indicated that for ever $1.00 spent at a land location, some $10.00 to $100 was spent at an offshore floating surface location while $1,000 or more can be spent on technology submerged deep under water.

The history of hydro-kinetic turbines began some 4.000-years ago with water wheels that converted the kinetic energy of flowing river water to mechanical power. Early installations were located along a river bank, with the lower section of the water wheel being partially submerged in the flowing water that in turn caused the wheel to rotate.

During the 1980s, the quest for clean renewable energy led to tests involving underwater windmills or hydro-kinetic turbines, the result of fresh water having almost 850-times the density of air and ocean water having 870-times the density. Power output is a function of the mass flow rate of fluid through a turbine. As a result, hydro-kinetic turbines showed great promise as an alternative clean renewable energy technology. Most early builders of hydro-kinetic turbines installed the turbines on supporting frames that rested on the riverbed, as was the case southeast of Montreal and other locations internationally.

Turbine Installations

The installation of submerged turbines involved a boat or a ship equipped with an onboard crane carrying the turbines to the installation site, where the crane subsequently lowered each turbine assembly on to the riverbed or seabed. Maintenance of submerged turbines requires divers to work under water or a crane equipped vessel to retrieve the submerged turbine assembly to the surface, at considerable cost. Securing turbines to coastline structures or under floating technology that maintenance crews could board, reduces maintenance cost. Companies in Canada and Scotland are developing floating structures that carry turbines.

While the floating structure from Orbital Marine of Scotland carries 2-turbines of 1-megawatt each, the floating structure from Sustainable Marine of Canada carries 6-turbines. A competing floating structure from Big Moon of Canada carries a modern water wheel. All 3-technologies are designed to be towed from a coastal point of construction to an offshore point of installation, where mooring cables would secure the floating turbine assemblies.

Big Moon places the axle shaft and electrical generating equipment above water inside an enclosure. Orbital Marine and Sustainable Marine build the floating structures to allow maintenance crews access turbines and generating equipment.

Mobile Dry Dock

The semi-submersible ship known as a mobile dry dock can submerge under the hull of a stricken vessel before raising it above water. That technology could be adapted to carry large-scale floating ocean kinetic energy conversion technology upside down on its deck, from a shore-based construction or assembly site to a suitable offshore site before submerging to float the turbine assembly off its deck. The combination of ballast tanks, pontoons and crane cables would assist in rolling the turbine assembly over prior to it being floated on to the deck of a mobile dry dock.

Upon arrival at the installation site, cables would be attached to secure the floating turbine assembly in suitable tidal currents. Mobile dry dock technology allows greater flexibility in the future design of large-scale floating turbine assemblies that deliver high power output at competitive cost. The future market development for ocean conversion power technology depends on innovation that increases power output at competitive cost, with ease of access to machinery to perform routine maintenance and repair being essential. An expanded market for the technology would justify the cost of developing dedicated semi-submersible technology capable of carrying turbine assemblies.

River Turbines

Traditional river-based hydro-kinetic turbines involved a structure built along a river bank with an axle extending away from land and perpendicular to river flow. Such water wheels served communities over a period of centuries performing a variety of tasks. Big Moon of Canada is developing a modern water wheel capable of operating in powerful water currents. A floating structure may carry the water wheel at mid-stream while a coastal building may carry the water wheel next to the shore, to allow easy access for maintenance of electrical generating equipment and to the turbine.

The upstream side of bridge piers along fast flowing rivers provide cost-competitive locations to secure housings for vertical-axis hydro-kinetic turbines. While the bottom of the turbine housing might rest on the river floor, the bridge pier might also be able to carry the weight of the housing assembly. Exposing a sector of 120-degrees of water wheel circumference of a transverse-axis or vertical-axis water wheel to river current should provide competitive conversion efficiency to axial-flow turbines. There would be potential to stack vertical-axis water wheels or turbines on extended-length drive-shafts to increase power output at competitive cost.

Larger and Stronger Turbines

Over the past 20-years, submerged hydro-kinetic turbines from several different builders that were installed in different fast-flowing water currents underwent breakage of turbine blades and especially so in channels around Canada’s Bay of Fundy. Instead of extending turbine blades outward from a central axle, one turbine maker extends turbine blades inward from a rotating ring installed on a large-diameter tubular pipe housing. That design precedent provides a basis to the combine a central axle with a large-diameter tubular housing to potentially double total turbine blade radius, raising swept area and power output by a factor of four.

The future of hydro-kinetic turbine power conversion will depend on increasing power output at competitive cost. Development of large diameter turbine blades capable of sustained operation in severe currents would be essential. Earlier water wheel type hydro-kinetic turbines were susceptible to breakage incidents when operating in powerful water currents. If Big Moon of Canada is able to develop their modern water wheel to endure sustained operating in the severe currents of Bay of Fundy, scaled-up versions their technology would likely have future application in river-based installations and in offshore floating power generation operation.

While the most powerful floating twin turbine delivers 2-megawatts of power, future free-flow turbines would likely deliver far greater output. Much research is being undertaken on hydro-kinetic energy conversion and includes such concepts as underwater swooping kites that travel perpendicular to and at higher speed than surrounding water current.

Floating Vertical-axis Option

The option of a floating structure carrying twin counter-rotating vertical-axis turbines offer the potential of cost-competitive and efficiency power generation technology. An upstream deflector can expose a sector of 120-degrees of each turbine that moves downstream with the water current while shielding the area of turbine that moves upstream against the current, thereby reducing parasitic drag and raising efficiency. Vertical-axis operation allows electric generators and main upper bearings that carry the weight of each turbine, to be placed above water inside the floating structure and be easily access to maintenance crews.

An upper bearing based on a circular rail and tapered wheels could carry the weight of each stack of turbines or water wheels. The design would need to allow for hydraulic jacks to slightly raise each turbine so as to allow for periodic replacement of roller wheels. An oversized lower bearing with ceramic guides and rollers would carry side loads and periodically be replaced be divers or future remote-control technology. Competing floating systems that use axial flow turbines might need to tilt 90-degrees or roll over by 180-degrees to allow for maintenance to bearings and electrical generators.

Conclusions

While modern free-flow hydro-kinetic turbines show great potential to generate carbon-free electric power, there are very few locations internationally where such technology generates electric power for nearby markets. Development of modern versions of the technology to replace classical water wheels, has been ongoing for several decades. Severe water currents have actually destroyed several modern hydro-kinetic turbines in the severe currents that flow around Canada’s Bay of Fundy. The technology needs to deliver the combination of durability in severe weather conditions, high power output, ease of maintenance and cost-competitiveness against other renewable technologies over an extended service life.

The severe current conditions around the Bay of Fundy require that high-level innovation be applied to further develop hydro-kinetic turbine technology. There would likely be potential for such innovation to expand market application of hydro-kinetic technology in domestic Canadian service as well as international service.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Petchem Boom

Demand for petchem products is growing, both in the U.S. and abroad, benefiting ports – especially along the U.S. Gulf Coast

Houston petchem terminals

PUBLISHED MAY 28, 2023 11:25 PM BY TOM PETERS

 

(Article originally published in Mar/Apr 2023 edition.)

According to the U.S, Department of Energy, petrochemicals derived from oil and natural gas account for over 6,000 daily products and high-tech devices. The demand for such products is expected to grow with industry speculation suggesting a compound annual growth rate in petrochemicals of nearly five percent through 2026.

But growth in petchem demand also means the need for more oil and gas. That, in turn, offers a challenge to the petrochemical industry because of global pressures to reduce the use of carbon-emitting fuels and feedstocks like oil and gas. Many marine ports, which have a high concentration of petrochemical facilities on their properties, are part of the equation.

So the issue begs the question: Is there any discussion between the port community and petrochemical producers on the challenges of reducing the use of fossil fuels? According to Captain Bill Diehl, President of the Greater Houston Port Bureau, the topic is front and center.

“Houston is the Energy Capital of the World,” he says. “With 96 percent of all manufactured goods directly tied to the petrochemical industry, shifting to low-carbon energy and manufacturing is complicated and will take time. The best talent in the energy industry is concentrated in Houston, and the energy companies are prepared to lead the global transition to a low-carbon or no-carbon future. Our companies are investing in energy transition pragmatically while continuing to meet current demands.”

Seaboard Blue

As a sidenote and example of the use of “greener” fuels, the Port of Miami marked a milestone recently with the refueling of the container ship, MV Seaboard Blue, with liquefied natural gas (LNG) prior to its sailing to Honduras and Guatemala.

Seaboard Blue, with a 1,000-TEU (twenty-foot equivalent unit) capacity, was retrofitted in 2017 to run on both LNG and diesel fuel. The vessel was the world’s first container ship converted from conventional diesel propulsion to LNG and joined Miami-based Seaboard Marine’s North Central America service.

“Seaboard Marine’s adoption of greener sources of fuel is exemplary and a significant step toward our goal of keeping Miami-Dade a county on the cutting edge of sustainability,” noted Miami-Dade County Mayor Daniella Levine Cava in a release. “Together with our shore-to-power project that will soon become a reality, these investments continue to position PortMiami as an industry leader and help to ensure our community becomes future-ready.”

Eddie Gonzalez, President & CEO of Seaboard Marine, adds, “Seaboard Blue is a key new component of Seaboard’s fleet transformation. The recent purchase of this LNG-powered ship not only demonstrates Seaboard Marine’s ongoing commitment to sustainability but also to providing reliable service to our customers.”

Petchem Row

However, as the world ponders green fuel and climate issues, the wave of newly constructed oil, gas and petchem facilities continues unabated along the Texas and Louisiana coasts and inland as well, and the Port of Beaumont in southeast Texas is one of the ports reaping the benefits.

The port specializes in handling project cargo and has additional attributes that appeal to private companies looking to move large components to project sites along the Neches River, including its location at the terminus of the federally maintained channel, which means there’s limited vessel traffic moving in the areas surrounding the public docks and wharves, says Sade Chick, Director of Corporate Affairs. For these reasons, she adds, LNG facilities, refineries and chemical plants along the waterway rely on the Port of Beaumont to move the large pieces of cargo.

Chick says the largest projects being constructed in southeast Texas right now are for the export of liquefied natural gas as the U.S. takes the global lead in LNG exports. However, a new ethylene production plant is also under construction as well as a facility that will produce blue ammonia.

Another project involves Chevron Phillips Chemical. CPChem, a joint venture between Phillips 66 and Chevron, recently announced an $8.5 billion integrated polymers facility that will be built in partnership with QatarEnergy in the Golden Triangle region (Beaumont, Port Arthur and Orange) in Orange, Texas. A new company, Golden Triangle Polymers Company LLC, has been established to oversee the project.

When operational in 2026, the plant will include a 4.6 billion pounds per year ethane cracker and two 2.2 billion pounds per year high-density polyethylene units. An ethane cracker converts ethane into ethylene, which is used to produce polyethylene – the most widely produced plastic polymer used in the production of everything from durable goods like pipe for natural gas and water delivery to recreational products like kayaks and coolers. It’s also used in essential packaging applications to protect and preserve food and keep medical supplies sterile.

The project’s goal is to have 25 percent lower greenhouse gas emissions than similar facilities in the U.S. and Europe.

Another big international company operating near Beaumont – OCI Beaumont, owned and operated by Amsterdam-based chemicals manufacturer OCI N.V. – is planning to invest close to $5 billion to expand its East Texas complex. It plans to add a nitrogen-based fertilizer production facility and a renewable fuels plant to its existing 28-acre ammonia and methanol plant south of Beaumont on the Neches River. If the plans are finalized, OCI would spend $2.8 billion on the additional fertilizer production units.

The cargo generated by these projects for Port Beaumont doesn’t come without its challenges, says Ernest Bezdek, the port’s Director of Trade Development.

“Space is always the biggest challenge,” he explains. “Many of the industrial facilities require space to handle their cargo while preparations are being made at the construction site. The pandemic created some issues as the components were manufactured but site preparation and construction were delayed due to COVID-19. We’re just beginning to see some relief from the issues created by the delays. The future is bright. However, additional space is a priority not only for ports but for private industry as well.”

LyondellBasell, based in the Netherlands with its U.S. headquarters in Houston, is one of the largest plastics, chemical and refining companies in the world. It announced in March the startup of the world's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) units. These new assets on the U.S. Gulf Coast in Channelview, Texas have an annual capacity of 470 thousand metric tons of PO and one million metric tons of TBA and its derivatives.

PO goes into making polyurethane foam, typically used to make mattresses, car and furniture seat cushions, insulation and a variety of other products. TBA is converted to produce two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane fuel additives that help gasoline burn more efficiently.

Another project involving LyondellBasell was the signing of a long-term contract with Nexus Circular of Atlanta to supply LyondellBasell with approximately 24,000 tons of recycled plastic feedstock per year. The material will be produced at Nexus Circular's new advanced recycling facility, which will begin construction this year. The new facility will convert mixed plastic waste into recycled feedstock. LyondellBasell will use the recycled feedstock at its Channelview, Texas facility to produce new plastics that will be marketed under the CirculenRevive brand.

Nexus Circular is a commercial leader in advanced recycling with a proven proprietary technology and a leading process design that converts landfill-bound films and other hard-to-recycle plastics into high-quality liquids, which are then used to produce virgin-quality plastics.

#1 in Resins

Port Houston continues “to see increasing resin demand driving export-loaded containers up 31 percent above the same month last year,” says the port’s Executive Director, Roger Guenther. “We are the top resin port in the nation, and exports of container cargo with polymers and other petrochemical products remain strong. We continue to make the investments in our facilities to handle future growth.”

Port Houston exported 59 percent of all resins from the U.S. in 2022.

“New resin-packaging facilities continue to come online around the port,” notes Guenther, adding to Port Houston’s export volumes via its two container terminals, Barbours Cut and Bayport Container Terminals.

In addition, Packwell plans to build a new state-of-the-art resin-packaging facility on a site leased from Port Houston at the Bayport Industrial Complex. Packwell is a plastics bagging and logistics company established in Houston in 1986, and its packaging expertise involves bagging polymers of all categories.

Last year, the Houston Port Commission awarded more than $300 million in new capital projects, a new record supporting Port Houston’s continued investment in growth and infrastructure.

The fiscal year 2023 capital plans anticipate an Operating Capital Improvement Projects budget of $579 million and $99 million for Project 11, the expansion of the Houston Ship Channel. The dredge used for much of the work is the cleanest in the Americas, Guenther says. 

Halifax-based Tom Peters is the magazine’s ports columnist.

GREENWASHING

MSC Euribia Delivered as MSC Prepares for Net Zero Demonstration

MSC Cruises
MSC Eurbia during her sea trails (MSC Cruises)

PUBLISHED JUN 1, 2023 7:25 PM BY THE MARITIME EXECUTIVE

 

MSC Cruises took delivery on its newest cruise ship on May 31 promoting it as possibly the industry’s most environmentally advanced ship to date. The last ship of a previous class, the MSC Euribia incorporates new elements including the use of LNG as its primary fuel and advanced technologies as the company prepares to demonstrate the future with a four-day delivery voyage from France to Copenhagen. The voyage is being promoted as the world’s first net-zero greenhouse gas emissions trip for a cruise ship.

Built by Chantiers de Atlantique in Saint-Nazaire, France, the MSC Euribia is the fifth and final ship on order in the company’s Meraviglia class. At 184,011 gross tons, the cruise ship ranks among the largest in the world and joins a growing number of dual-fuel capable cruise ships. She is powered by four Wärtsilä engines (two 16V and two 12V) running on LNG or low-sulfur marine gasoil. 

The new cruise ship measures 1,086 feet in length. She has a passenger capacity of 6,334 and a crew of approximately 1,700. Among the systems, she was fitted with an advanced onboard wastewater treatment system, waste management, and a wide range of energy-saving equipment, including smart heating, ventilation, air conditioning, and lighting, to maximize efficiency.

The propulsion plant is designed to give her a maximum speed of 22.3 knots while also being energy efficient and reducing emissions. According to MSC, when in service, the vessel will emit up to 19 percent less greenhouse gas emissions per passenger per day than her sisterships which use conventional marine fuels. This amounts to 44 percent less greenhouse gas emissions per passenger per day than ships built only 10 years ago.

The MSC Euribia is scheduled to depart Saint-Nazaire on June 3 and will run a four-day mini cruise as she repositions to Copenhagen, where she will be christened and enter commercial service. To demonstrate the potential, the company purchased 400 tonnes of bio-LNG. They believe it will be the first time an ocean-going cruise ship has used a fuel that has a significant lifecycle emission reduction. 

Working with Nordic energy company Gasum, they have worked to ensure the entire supply chain is fully compliant with the EU’s Renewable Energy Directive. The batches of bio-LNG have been certified and the company will utilize a mass-balance system, which it says is the most environmentally efficient method of delivering the benefits of renewable biogas. In addition, the speed and itinerary of the Euribia’s voyage have been designed to optimize the configuration and loads of the engines to minimize fuel consumption. Engineers and specialists from MSC and the shipyard will be aboard to monitor and optimize the voyage and MSC will also be monitoring the operations from its shore-based center in London.

Pierfrancesco Vago, Executive Chairman of the Cruise Division of MSC Group, said “With the delivery of MSC Euribia, we have taken yet another huge step towards our net zero GHG emissions goal. Alongside her many best-in-class environmental innovations, MSC Euribia features a truly groundbreaking energy efficient design that will deliver huge reduction in GHG emissions throughout her lifetime.”

MSC reports the vessel has also been designed to adapt to future alternative energy options. The cruise line highlights it is working with fuel providers and others on developing drop-in sustainable fuels such as advanced biofuels and biogas. They are also exploring green methanol, synthetic e-fuels such as green hydrogen, and eLNG. The ship’s design can accommodate retrofits enabling the LNG-powered vessel to operate using green methanol in the future.

As MSC officially took delivery today, they also marked the next phase of construction on the company’s second World Class cruise ship. The ships are industry giants at 215,863 gross tons with accommodations for 6,700 passengers. The class is second in size only to Royal Caribbean International’s largest cruise ships. The first, MSC World Europa, entered service in late 2022, and today the company placed coins under the keel as the second ship of the class MSC World America begins assembly at Chantiers de l’Atlantique. This ship is due to enter service sailing from PortMiami in April 2025.