Reporting on the business and technologies
driving today's global industrial gas industry

Gas Suppliers have always had to address the need for energy efficiency, both within their own process chains and when installing production facilities for their customers. The ultimate aim is to achieve better results while cutting resource consumption—in short, more for less.

The world economy is frought with uncertainty due to the continuing European debt crisis, and the recovery in the United States, Latin America\'s important trading partner, remains stubbornly mild. These unfavorable foreign economic environments are beginning to affect financial markets and commodity prices in Latin America. In spite of the serious financial issues in the world economy, Latin America is still predicted to grow in 2011 and 2012.

In this article, Keith Hall reviews the New Frontiers in Natural Gas Conference hosted by Westlake Securities in November. Westlake Securities is a middle market investment banking firm that services many industries including oil and gas exploration and production. This gathering of industry leaders and institutional investors explored emerging non-traditional uses of natural gas in the energy and transportation sectors. Presenters at the conference included senior leaders from companies representing a cross-section of natural gas producers, as well as providers and users of natural gas services and equipment. The conference served to provide participating companies and investors with a sense of the momentum and direction in which the natural gas industry is heading, and to gauge the maturity of the myriad associated technologies.

In this article we describe some of the methods used by nexAir to sustain high performance gains and to institutionalize continuous improvement.

Banding together as one large group or buying allows the individual distributor to take advantage of the volume discounts that national competitors contract for when buying in bulk. These groups also provide other services such as education, references, and networking. Today, many buying groups within the US industrial gas distributor space are flourishing under the cooperative model. These cooperatives, associations, and groups are increasingly important to the marketing and operations of distributors as they set new, more vigorous priorities to improve their operating incomes. As part of CryoGas International’s coverage of continuous improvement initiatives in 2012, we profile some of these groups.

Strength across all oxygen markets as the US pulls out of the recession has led to greater demand for oxygen. Major gas producers in the US have been concentrating on on-site oxygen and nitrogen for new large volume applications such as Gas-to-Liquid projects, coal gasification, and oil well workovers. These diversified applications, created by and dependent on consistently high oil prices, have lessened air gas producers’ reliance on demand from traditional fabrication and metals sectors. In this report, we examine how the markets for oxygen fared in 2010 and 2011, and take a look ahead to see how they are likely to perform in 2012.

The separation of air into its simplest components is practiced on an industrial scale using cryogenic distillation in addition to adsorption and membranes. The inputs to an air separation unit (ASU) are air, electrical power, and cooling water. The outputs are oxygen (O₂), nitrogen (N₂), argon (Ar), and rare gases such as xenon, krypton, and neon (Xe, Kr, and Ne). While these outputs are fairly elementary, their production processes are extremely complex. This highly specialized technology entails expertise from a variety of disciplines including: chemical, mechanical, and electrical engineering; highly sophisticated process design; advanced equipment fabrication; and careful project execution. In this report, we look at how to make an informed decision about cryogenic air separation technology. Selecting the best solution requires detailed dialog and analysis to identify the best overall solution.

In today’s economy, which has been challenging in most market sectors, business professionals need ways to retain the business they currently enjoy while finding creative ways to profitably grow their business. Chart’s MicroBulk system (www.chart-ind.com) enables industrial gas distributors to provide improved service to existing clients as well as service the fast growing healthcare sector, yielding both customer retention and business expansion.

Algae are exceptionally gifted chemists and help climate protection. This is because algae take in carbon dioxide (CO₂) and sunlight to produce chemicals such as carbohydrates, lipids, and amino acids. In special cases they even produce bioethanol, which is a valuable substance for the chemical industry and for use as a fuel or fuel additive. Linde (www.linde.com) engineers, together with algae specialists from Algenol Biofuels (www.algenol.com), are developing technologies that provide these green cell factories an optimum feed of CO₂.
In this article, Linde explains the process of producing bioethanol from algae, and the benefits of using this process.

Now onstream for over a month, the Air Products hydrogen fueling station at the Orange County Sanitation District (OCSD) facility in Fountain Valley, CA continues to make news. Most recently it was the United States Department of Energy (www.energy.gov) that hailed it as the “Fuel Station of the Future” and lauded its “Innovative Approach to Fuel Cell Technology.”

This project represents a public-private project collaboration team that included the DOE, OCSD, Air Products, FuelCell Energy, National Fuel Cell Research Center at the University of California, Irvine, California Air Resources Board, and South Coast Air Quality Management District.

Healthcare expenditures include all costs for private and public health services, supplies, and investment in research, structures, and support. Most major industrialized nations spend 8–10 percent of GDP on healthcare, according to the Organization for Economic Cooperation and Development (OECD). The recent global financial crisis touched all economic sectors, including the relatively recession-resistant worldwide healthcare business. However, the main drivers for healthcare market growth—demographic shifts, improved diagnostic and therapy options, and better patient access to care—remain solid, and CryoGas’s assessment for improvement in the healthcare segment for 2010 and early 2011 is brighter than in 2008 and 2009.

In last year’s “The Worldwide Industrial Gas Healthcare Market Report,” (CGI, December 2010), we examined trends driving growth in the industrial gas (IG) industry’s piece of the healthcare pie. In this report, we update readers on those trends.

At the mention of medical gases, the first products that usually come to mind are the oxygen used for breathing therapy and the nitrous oxide (laughing gas) used for conscious sedation. These vital gases are used extensively in healthcare. However, there is another group of gases supplied less frequently and in smaller quantities, but which are just as vital to patient welfare —“Cinderella” specialty medical gases.

“Just like Cinderella in the famous children’s story, this group of gases is small, helpful, and largely unnoticed,” says Steve Harrison, Head of Specialty Gases and Specialty Equipment for Linde Gases. “However, they are actually at the heart of specialty medical gas supplies.”

In this article we review the Cinderella specialty medical gases that are used every day at hospitals and medical laboratories and by clinicians and others that service the healthcare industry—and for which quality is critical.

Today’s clinical laboratory is one of a hospital’s largest departments, producing vital information for effective healthcare delivery. A clinical lab contains several departments for a variety of lab tests and houses sophisticated specialized instrumentation. Although often viewed as an ancillary service, fast, accurate tests are relied on heavily by doctors for disease prevention, diagnosis, and treatment.

An important factor when considering new construction or expanding an existing laboratory is the gas requirements for the instruments being used. It is important to select a gas delivery system to ensure that the gases supplied will meet requirements for pressure, volume, and purity. Architects and designers will typically allocate space for cylinders or other gas storage options. This article explains the importance of safe delivery, levels of purity, and selecting proper equipment for gases used in a clinical laboratory.

The American Welding Society Foundation (www.aws.org) was established in 1989 with a single mission—to develop funding to support welding scholarships. In 1991, money was set aside to support the first fellowship, which was awarded for $20,000. Since that time, the Foundation has awarded more than $5.3 million to some 3,900 students.

Since 2006, the American Welding Society Board of Directors has contributed $2,100,000 to the AWS Foundation to support additional funding for scholarships and in support of welder workforce training. This article reveals some of the scholorship programs and campaigns offered and their successes.

J.R. Campbell, publisher of CryoGas International, recently visited China to attend the CIGIA 13th Exhibition, in this article he writes of his trip and the exciting things going on overseas.

He writes, \"During the week of September 19, 2011, I had the great pleasure of visiting Beijing, China and attending the Chinese Industrial Gases Industry Association’s (CIGIA) 13th China International Exhibition on Gases Technology, Equipment, and Applications. I also had the privilege of participating in and presenting a short picture of the US industrial gas business to the gathering of the 2011 International Cylinder Manufacturers Congress (ICMC 2011) held concurrently with NG & IG, CHINA 2011. The week’s activities and events were held at the Beijing National Agricultural Exhibition Center and provided an excellent platform for companies and people in the global industrial gas industry to network on new systems and gas-related opportunities in China.\"

Tight supply is the most notable aspect of this year’s review of the worldwide helium market. Uncertainties relating to timing of future supply sources, projecting market demand during uncertain economic times, and the United States Bureau of Land Man- agement’s (BLM) changing role in supply make this a challenging market to manage. This year was particularly tough with supply disruptions affecting most of the major sources of helium across the globe. To get the insider\'s view of this critical industrial gas market, CryoGas International spoke with the helium experts at major industrial gas companies.

CryoGas International publisher, John Campbell, recently met with Anne Roby, President of both Praxair Asia and Praxair Electronics worldwide, to talk about the company’s growth in China and its bright future prospects. Roby is based in Shanghai.

Helium is used in many industries including medical, welding, high tech manufacturing, spacecraft, and retail balloons. A recent report in the Star Telegram (Fort Worth, TX) noted that one third of the world’s helium comes from the US Government Federal Helium Reserve’s 450 mile pipeline. The Bureau of Land Management (BLM) expects these helium reserves to be depleted by 2020. This diminishing supply has affected helium users worldwide, including the balloon industry. In this article, find out how balloon manufacturers and distributors are getting creative to keep sales up.

As the world moves toward a cleaner planet, mandates for the use of environmentally friendly chemicals and technologies have created shifts in gas demand in some markets and ushered in new and/or expanded market opportunities for industrial and specialty gases and equipment in others. In this article, we look at a few of the markets undergoing shifts in gas applications and demand as we move toward a cleaner environment and more efficient energy sources.

In preparing this year’s US Industrial Gas Market Report, CryoGas International analyzed economic and market information from respected groups such as the US Bureau of the Census, US Bureau of Economic Analysis (BEA), and the US Federal Reserve Board. For industrial gas (IG) company information, including performance and market projections, we solicited input from the companies and industry analysts, and utilized company published reports.
As we discussed last year, the economic recession drove demand for industrial gases down during 2008 and 2009. Our assessment of industrial gas demand in the US for 2010 and early 2011, however is brighter. We see growth returning, but not to pre-recession levels. Company financials and input from industrial gas players confirm this trend.

The distribution of bulk liquids and com- pressed gases is a complex and critical part of the gas supply chain. According to Fleet Owner estimates (February 2011, www.fleet owner.com), there are over 4,000 bulk rigs in the US encompassing tractors, trailers, tankers, and tube trailers. Industrial gas com- panies manage some of the largest trucking fleets in the US.

In the present economic environment, propane distributors have to look for alternative methods to serve their customers and make money. Let’s take a look at some of the key additional logistics challenges that the propane industry faces and how logistics technology can help.

In this article, we look at changes within distribution channels and provide insight on how to manage your business relationships on the new playing field.

With virtualization, computer systems can run multiple software applications on the same computer without compromising security or system performance, and 100 percent of the computer’s system resources can be allocated across multiple applications, resulting in fewer computers to buy, manage, and service. The convergence of the internet, data centers, and virtual environments has opened up an exciting way to run your business. It’s called cloud computing and successful businesses are finding this solution a perfect way to improve overall operations and service, while keeping costs at a minimum. Here’s how it works.

Taylor-Wharton Cryogenics LLC (TWC), which traces its roots to 1742, has maintained a reputation for innovation, quality, safety, and value in the cryogenic storage market. The company and the markets it serves were hit hard by the global economic recession. During that time, Taylor-Wharton restructured itself, invested in its people, plants, and processes, and emerged with a new sense of purpose: commitment to providing the highest level of customer service, the shortest lead-times for its products, and a value unsurpassed by its rivals. Taylor-Wharton is on a mission to “deliver on its promises.”

Len York is the President of Taylor-Whar- ton Cryogenics LLC (TWC) and the Chief Financial Officer of the company’s parent, Taylor-Wharton International LLC (TWI). Len, having spent the past year implementing and managing the company’s turnaround, took some time to share his thoughts with us on how Taylor-Wharton plans to serve its cryogenic customers.

The food and beverage industry has enjoyed the benefits of using industrial gases for more than 45 years. These gases—primarily nitrogen and carbon dioxide—are used to chill, freeze, grind, and package a variety of products, including bakery and dairy items, beverages, fish and seafood, fruits and vegetables, meat and poultry, prepared meals, and more. In addition to food quality and cost savings benefits, the use of industrial gases in food processing applications can also provide health and safety benefits.

Gas chromatography-mass spectrometry (GC-MS) is one of the most important tools in analytical chemistry. Where other analytical techniques determine quantitative issues arising from analysis of a sample (how much of a chemical is present), GC-MS is able to identify qualitatively the nature of chemicals in the sample, identifying which molecules are present. According to the GC principle, molecules in a sample separate in the chromatography column due to differences in their chemical properties. Mass spectrometry breaks components into ionised species and separates these based on their mass-to-charge ratio. Gas chromatography is the first separation step and mass spectrometry is the subsequent step that performs qualitative detection. In this article, Harrison explores the history, applications, and more of the GC-MS.

The planning and deployment of Continuous Improvement (CI) as a business strategy through the process of Visual Policy Deployment (VPD) assists the gases and welding distributor in establishing a clear strategic direction with aligned goals and objectives throughout the organization. Carrying these plans forward and sustaining them depends largely on how conducive the existing company culture is to CI. In this article, we discuss the importance of establishing a culture where continuous improvement is a way of life.

Fabricated parts—metal structures formed by cutting, bending, and assembling—are the underpinnings of modern life. They include everything from the steel girders that support our buildings to the oven rack that allows the bread to rise. As new technology makes old technology obsolete, lots of fabricated parts end up in the scrap yard, where Madeleine Lord finds them and refabricates metal into art.

In this article, Keith Hall reveiws the first annual ACT Expo. The event was a tribute to the fact that more and more companies are getting serious about natural gas (NG) as vehicle fuel. Vehicle manufacturing heavyweights like General Motors, Ford, Honda, Kenworth, Peterbilt, and Thomas Built Buses, were all present and had displays of their latest energy-friendly vehicles.

In this special equipment report INOXCVA introduces it\'s LNG mobile refueler. Without confidence in the LNG infrastructure as of yet, demand for LNG vehicles has not been expanding. To adress the issue, INOXCVA listened closely to the needs of transport industry pioneers and developed this LNG mobile refuling station that can fill two important roles.

Recent and continued advances in the electric-drive vehicles market represent opportunity for the industrial and specialty gases industry, which supplies gases and related technologies to traditional and alternative auto industry platforms. In this article, Baker explorse the application of industrial gases within lithium batteries, as well as the recent goals of the DOE and President Obama for putting more electric vehicles on the road.

In this article, Klein and Ladd explore the changes in the US EPA and DOT standards for medium- and heavy-duty trucks and buses. They cover the changes that have been made to meet 2010 EPA standards and the effects these changes had on the diesel supply chain.

In this article, Thiem writes on the advancements in uses of nitrogen, especially in tires. He explores the multiple benefits of using nitrogen to inflate tires.

In this article, Austin explores the application of recycling the millions of scrap tires produced in the US every year. She describes the cryogenic process that helps re-use the rubber in tires for asphault and many other uses.

Praxair Distribution, Inc. (PDI), the North American packaged gases and hardgoods subsidiary of Praxair, Inc. (www.praxair.com) has recently made some significant changes. In this interview, CryoGas International discusses those changes and their impact on PDI\'s North American specialty gases business with James Baughman, General Manager of PDI\'s North American Specialty Gases & Equipment business unit.

As we reported at the beginning of the year (see \"Full Steam Ahead,\" CGI, January 2011), the Latin America industrial gases sector showed very good results in 2010, with sales increasing by more than 20 percent thanks to the strong economic recovery enjoyed by the region. In this report, we take a closer look at the factors involved in that recovery.

It is perhaps your greatest untapped market segment today. For decades, welding distributors have made a living serving industrial end-users’ hard goods and consumables needs, providing gases, wire, welders, and all manner of accessories. For many distributors, their entire business has been built around meeting the needs of their industrial base, from store location to physical store layout, products stocked, hours of operation, sales training, and many other important aspects. The go-to-market channel for this user is well established.

But, when it comes to the personal user, today’s distributor is likely leaving money on the table. The personal user is a fragmented segment with many choices, served by many suppliers in a cluttered marketplace. But it represents significant opportunity.
What if there was a model to effectively reach this customer, combining a simple, pleasant shopping experience with seamless local delivery and friendly support? How much extra revenue would this represent for your business?

This article explains the process involved during the production of thin film silicon solar cells at a fabrication plant supported by turnkey gas and chemical solutions.

Argon demand has been strong over the past year with key markets showing robust growth as the US economy comes out of recession. Production of argon is dependent on large volume oxygen production at air separation units (ASUs). Unfortunately, demand for oxygen has not been strong over the past few years due to sluggishness in large oxygen-using markets like steel. As a result, strong demand for argon coupled with its limited production at associated oxygen plants, has caused argon supply across the US to be tight. To address this imbalance, industrial gas companies have been improving efficiency and maximizing capacity.

Since Air Products first began locating its industrial gas facilities adjacent to its customers in the 1940s, the concept of \"on-site\" has typically been associated with bulk gases such as oxygen, nitrogen, or hydrogen. Now, however, for the first time, Air Products is building an on-site ammonia plant to serve the burgeoning light emitting diode (LED) business.

Independent industrial gas distributors fill a critical niche in the industrial gas market by providing superior service to customers. Whith highly personal attention and flexible systems, independent gas distributors can justify premium pricing when meeting the demands of customers whose requirements are dynamic and often urgent. Among the cylinder gases that distributors fill themselves, hydrogen has been one of the last choices. Proton OnSite has introduced a new model of Proton Membrane Electrolysis (PEM) hydrogen generator that allow distributors to fill high purity grades of cylinder hydrogen themselves.

In this article, writers from The Gas Review, Japan\'s premiere monthly news publication covering industrial gases and energy economics in Asia, share with us the ways in which the devastating earthquake and tsunami of March 11, 2011, affected the Japanese and global electronics industry and the supply of specialty gases used in electronics manufacturing.

Distributors must focus on solutions that take them from their current business state to a desired future business state. As discussed in my previous article, this is done \"Through Customer Driven Continuous Improvement.\" (See \"Independent Distributors Transform the Playing Field,\" CGI, March 2011.) There are many elements of the Continuous Improvement (CI) planning process and in this report, I examine ways distributors can link business strategy to that process by focusing on Visual Policy Deployment (VPD), the process of establishing the visual workplace, sometimes called management by sight.

NASA\'s Johnson Space Center\'s (JSC) Mission Control in Houston, TX, takes control of a mission as soon as a spacecraft is launched from Kennedy Space Center in Florida. But Houston, also known as Space City, has not fired a rocket engine, let alone tested a new rocket-powered vehicle in years — until now.

As more uses are found for CO₂ in its traditional markets such as food and lasers, and more CO₂ is needed in rapidly developing applications like Enhanced Oil Recovery (EOR), the market demand for CO₂ is showing significant potential for growth in the near future. This report looks at the interesting developments in the US carbon dioxide market, particularly those affecting demand, and at the ways these developments and certan government policies affect sourcing.

An exciting new development is emerging from ongoing carbon dioxide research and demonstration projects in the Permian Basin, underscoring win/win opportunities to increas oil recovery rates from mature fields while providing the means to efficiently and safely store carbon dioxide generated from industrial and other sources.

Union Engineering, a world leading supplier of CO₂ technology, has developed Flash CO₂ (Patented), an innovative way to capture CO₂. The technology significantly reduces the cost of CO₂ capture from fossil fuel-based hydrogen production and enables liquid CO₂ to be produced at a direct operating cost, making CO₂ capture from hydrogen production significantly more attractive. This article explains the process of the new technology and it\'s advantages.

In this article, Chichilnisky and Eisenberger explain the Global Thermostat (GT) technology that has the capability of transforming power plants into net carbon sinks, its applications, advantages, and process.

In the United States today, there are approximately 189 ethanol plants. CryoGas International estimates that about 25 percent of these recover CO₂. Ehtanol plant development in the US had been growing steadily but was somewhat slowed by the recent recession. The industry, including its associated by-product CO₂ market, will continue to be impacted by the economy as well as by the political climate and resulting legislation. In this article, Rushing updates readers on the affects of the current political and economic climate on the ethanol industry.