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

Nitrogen refrigeration systems for trucks were produced as early as 1961 but were plagued by operational problems. With the world searching for ways to reduce pollution the Ukrainian-American company, Ukram Industries, has introduced the new ecoFridge nitrogen-cooled truck (www.ecofridge.info/). Running on nitrogen instead of diesel, the ecoFridge units do not emit harmful levels of carbon dioxide like their diesel counterparts and eliminate the use of hydro fluorocarbons, which are linked to global warming. The ecoFridge is now being used by a large supermarket chain in the UK with nitrogen supplied by Air Liquide (www.airliquide.com).

Praxair Distribution Inc. (PDI), a subsidiary of Praxair (www.praxair.com), is a major packaged-gases player in the US and Canada. This article discusses how PDI’s rigorous operational discipline provides a solid basis for the company’s growth. PDI’s acquisitions program is one example of how this operational discipline translates into marketplace strength. Much of the success of this program is attributed to the way in which PDI integrates acquired companies, including maintaining and promoting the employees of these companies.

Industrial gas distributors are looking for ways to minimize losses in the current economic downturn. In this article, TAP Resources (www.tapresources.biz) discusses Activity Based Accounting, a method to measure profitability by accounting for the costs of each resource and activity for all products and services. Using a model of a typical P&L for a cylinder filling company, the authors discuss how a distributor can identify ways to improve profitability.

Fred Seimer, a chartered financial analyst with over 25 years in chemical and investment industries, reviews the most recent results for industrial gas and related technology companies for CyroGas International.

Each year, CryoGas International takes an in-depth look at the US industrial gas market, which comprises about 28 percent of the worldwide market for gases. This year we look at how macroeconomic trends in 2008 have impacted the industrial gas market segments including primary metals, fabrication, chemicals, petroleum products, food, and more. We also review the market position of the six major players in the US gas business including Airgas (www.airgas.com), Air Liquide (www.airliquide.com), Air Products (www.airproducts.com), Praxair (www.praxair.com), Linde (www.linde.com), and Matheson Tri-Gas (www.mathesontrigas.com).

Demand for argon continues to be tight but is slackening with the current recession. Additionally, the supply of argon is compromised by the slowdown in steel and chemical processing. Argon is sourced from the large air separation units that supply these sectors, many of which are not operating a full capacity or have been shut down. This article explores all facets of the argon market from sourcing to demand trends, markets, and applications.

The Bottom Line is profit made by subtracting all costs and expenses from revenue. This article discusses how a typical independent distributor can significantly impact their bottom line by using a method called Lean Operating Principles. Paul Matlock of TAP Resources (www.tapresources.biz) is an advocate of Lean Thinking—reducing costs through small changes in a supply chain. He explains how distributors can reduce costs through process improvements.

In this article, Fred H. Siemer picks up a theme from an earlier article which explores the effects of the drastic decline in the stock market overall and the unjustified relative decline in industrial gas stocks. He also goes on to explore unique characteristics of this recession in comparison to past recessions.  Furthermore, he explains why there are positive investment possibilities for gas companies relative to chemical companies.

Demand for cleaner fuels keeps the global hydrogen business on a fast growth track. This year’s hydrogen market update focuses on the critical role refineries play in the hydrogen market. Also examined is the overall hydrogen business in the US, including its merchant sector, and the leading hydrogen players (www.airliquide.com, www.airproducts.com, www.praxair.com, and www.linde.com).

Hydrogen used in the refinery process greatly reduces the amounts of sulfur in ultralow sulfur transportation fuels. In this article, Air Products (www.airproducts.com) discusses how large-scale hydrogen production facilities support various refinery applications. Also described are the ways hydrogen is used in other large applications, like chemical processing, and in industrial manufacturing. Air Products enlightens readers on hydrogen’s role in emerging clean energy applications as well.

H₂Gen Innovations (www.h2gen.com), based in Alexandria, VA, focuses on creating technologies and products for on-site hydrogen production. In this interview, Barney Rush discusses his company’s beginnings and its continued growth and success. He highlights some of H₂Gen’s hydrogen systems and talks about their markets and customer base.

There are a wide variety of hydrogen compressor and pump technologies in use today. To introduce this topic, we asked several hydrogen compressor and pump manufacturers to describe the systems used in hydrogen applications. This article includes information from The Cryostar Group (www.cryostar.com), Barber-Nichols, Inc. (www.barber-nichols.com), Gas and Air Systems (www.gasair.net), Pdc Machines (www.pdcmachines.com), Pittsburg Cryogenics (www.cryoind.com), Pressure Product Industries (www.pressureproductindustries.com), and RIX Industries (www.rixindustries.com).

EVermont is a group of public and private entities working together to develop vehicles that use alternative energy. This article discusses their latest project, in which they teamed up with Northern Power Systems and Proton Energy Systems to build a system that uses renewable electricity to produce hydrogen transportation fuel. EVermont has successfully deployed a car that runs on hydrogen — even during a Vermont winter.

This article discusses CrystaTech’s (www.crystatech.com) CrystaSulf system. This nonaqueous sulfur recovery process removes both hydrogen sulfide and light hydrocarbons from hydrogen recycle streams and can translate into cost savings for refineries.

Slowdowns in economic growth have caused the major industrial gas players to manage risks created by the global credit crisis as they pursue market opportunities. This article examines the economic numbers and different measurements as well as various sectors relevant to the industrial gas business. In addition, the article considers the perspectives of the major players as they go forward in the New Year. (www.cryogas.com)

CryoGas International invited the major worldwide gas players to share their expectations for the New Year. Recognizing the difficulty in taking the long-view in the current economic climate, we appreciate the responses sent to us by Air Liquide (www.airliquide.com), Matheson Tri-Gas (www.mathesontrigas.com), and Praxair (www.praxair.com).

Photovoltaics, or solar energy, has been at the forefront of the alternative energy movement and the global market has been growing vigorously. In this article, Air Products (www.airproducts.com) discusses the technologies behind photovoltaics and the opportunities for industrial gas producers in this market.

Taylor-Wharton International (www.twiglobaltech.com) is one of the oldest and best known equipment providers to the industrial gas industry. In this article, Gadomski discusses his company’s business strategy, product lines, and brands, talks about the executive management team and the company’s international operations, and addresses questions about the current economic climate.

Economic conditions have eased since October, but growth is still slow. This article discusses how businesses in the industrial, medical, specialty gases, and cryogenic equipment industries should adjust and respond to changes in the economic cycle. Furthermore, it illustrates the effect of the economic downturn on mergers and acquisitions. (www.leaders-llc.com)

Recent fluctuations in oil and gas prices have sparked a greater interest in alternative fuels. This article discusses the viability of compressed natural gas (CNG) as an energy source for automobiles, exploring the advantages of CNG as opposed to gasoline and the challenges of implementing the relevant infrastructure. It also explains how CNG might be a viable option to move towards a hydrogen economy.

The Atlas Centaur Expendable Launch Vehicle was a crucial component in the shuttle that landed man on the moon. Keith Hall shares his experience as a young engineer working for General Dynamics Space Systems, the builders of the Atlas. He shows how the lessons he learned building the Atlas can be applied to the cryogenic industry, especially in terms of R&D.

Gas plants constructed adjacent or near a customer’s facility are termed “on-site”. The recent economic crisis has caused steel prices to tumble, a blessing and a curse for on-site expansion. Because steel prices have been high the past year, it has been difficult to build more plants to increase capacity, so the low prices now will make it less costly to expand. On the other hand, a lot of oxygen produced at these plants supply steel manufacturers, so the decrease in price of steel will cause a decrease in demand for oxygen.

Industrial gas companies are still on solid footing, despite the recent economic downturn. This article discusses the financial performance of the major industrial gas players including Airgas, Air Liquide, Air Products, Chart Industries, Harsco, Lincoln Electric, and Praxair

The emergence of medical markets has created new markets for industrial gas players. This article discusses the trends in healthcare, exploring the worldwide and US healthcare industries, the US industrial gas players, and the applications in healthcare technology, especially in MRI, hyperbaric oxygen therapy, and LENOXe. The article concludes by stating that healthcare demand will remain strong, although growth in the healthcare sector will be challenging.

Founded in 1978, Computers Unlimited (CU) has evolved from a small service bureau supporting local area
businesses into a major software development company. Today CU serves the needs of industrial, medical, specialty gas and welding supply distributors, as well as homecare oxygen and medical equipment providers, throughout North America. CU’s flagship product — Total Information Management System (TIMS) — is used at several hundred customer sites throughout North America by over 20,000 employees. CU’s customer base represents a substantial share of the North American industrial, medical, and specialty gas and equipment distribution channel.

The National Fire Protection Association\'s (NFPA) 99 Standards for Health Care Facilities details the many minimum standards and codes for the installation, performance, cerification and testing, maintenance, construction, and safe practices for systems used in all Health Care Facilities. In this article, we review NFPA99, Chapter 5, which covers Medical Gas Central Supply systems for liquid and high-pressure cylinders with or without a third leg reserve. From a manufacturing standpoint, not all systems are created equal, yet they have some common key elements and requirements. In attempting to decode the requirements and explain the reasons behind the standards, we hope to increase the understanding of the code among those installing and specifying systems.

Worldwide helium supply has been in balance with demand during the first eight months of 2008, relative to the very tight balance of supply experienced during 2006 and 2007. In this market report, Maura Garvey examines the current worldwide and US helium business and forecasts greater demand and continued tight supply until more capacity becomes available around 2012. Garvey also discusses the investment in helium recovery plants, managing the reliability of the supply, and conservation and recovery measures.

The need for more supply of gases worldwide has increased the demand for trailers and ISO tube containers. This article examines the different container standards and explores six companies, CP Industries, Dynatek, FIBA, Jack B. Kelley, Weldship, and Western Sales and Testing, each with its own business platforms specific to tube trailers, ISO containers, ASME receivers, and related services.

FIBA Technologies of Millbury, MA, recently celebrated its 50th anniversary. FIBA supplies high-pressure and cryogenic equipment to countries around the world. Part of FIBA’s continued success comes from the Company’s heavy investment in product research and development. One of FIBA’s next technology frontiers is the storage of alternative fuels. This article discusses some of FIBA’s current projects and the Company’s potential for expansion into emerging overseas markets, like compressed natural gas for transportation. Originally published in the February 4, 2008 edition of the Worcester Business Journal

Techwood Industrial Gases was formed in 1998 to purchase the assets Hico Distributing of Atlanta, a distributor of balloon grade helium. Since then, the Company has diversified and expanded into other industrial gas markets and supply chains. Part of Techwood’s success in the commercial gas market is its record for outstanding customer service. In this article, Norman Thiem describes how this company was built and discusses plans to expand into other markets.

Thermco, headquartered in La Porte, IN, designs and manufactures gas mixers and analyzers and provides equipment and service to all major gas companies, subsidiaries, and distributors. In this article, Ron Lucas profiles Thermco’s history, facilities, technology, testing, corporate structure, and service offerings.

In 2008, the four major international gas players, Air Liquide, Air Products, Linde, and Praxair, significantly expanded their presence in the Middle East Region. These companies engaged in new joint ventures with local companies and established on-site supply schemes. This article reviews new projects in the Middle East and looks at specific countries like Qatar, which has large reserves of natural gas and many projects underway to investigate how to extract these reserves.

High pressure gas cylinders can be hazardous for a variety of reasons. There are certain physical hazards inherent in the use of a high pressure vessel; the size and weight of the cylinder itself poses handling challenges. In addition, high pressure cylinders may contain chemical hazards. This article, Bob Yeoman of B & R Compliance, looks at some of the key safety program requirements necessary for handling high pressure and liquid cryogenic cylinders.

On-site non-cryogenic gas separation systems have come along way since their introduction in the early 1970s. Innovative Gas Systems’ (IGS) has non-cryogenic technologies whose products are in high demand with companies such as Chevron, ExxonMobil, Halliburton, Weatherford and BJ Services. IGS manufactures both membrane and Pressure Swing Adsorption (PDA) systems at three global sites. In this article, Thomas Roland and Paul Booth discuss IGS’ on-site non-cryogenic membrane and PSA technologies and business.

Since the late 1970s, non-cryogenic air and gas separation process technologies have been moving up the performance chain in producing oxygen, nitrogen, hydrogen and other gases. For this feature we asked three technology companies — Innovative Gas Systems, Parker Hannifin and IACX Energy —to share their thoughts on non-cryogenic systems. These companies are not aligned with the major international gas companies and are making good business out of these older, but newly marketable non-cryogenic technologies.

The continued high pace of merger and acquisition activity and the notable increase of gas prices by the major producers have all impacted the US distributor type business (DTB), which is a major component of the US industrial gas business. This group is made up of two major gas producers, Airgas and Praxair Distribution, as well as smaller distributor conglomerates like Valley National Gas, and many independent distributors and specialized players like Scott Specialty Gases, now part of Air Liquide. In 2007, total US gas revenues were $17.1 billion of which $5.2+ billion, or 30 percent, were derived from DTB gas sales. In this report, Maura Garvey looks at trends in the US Distributor Type Business over the past year and a half.

Chart Industries pioneered the concept of MicroBulk systems in the US and understands the applications and flexibility customers require to make their MicroBulk business successful. The Cyl-Tel® electronic liquid level gauge designed by Chart Industries for the Perma-Cyl® product line has become the “standard” level sensing device for the expanding cylinder and tank monitoring market. Chart Industries has teamed up with DataOnline to repackage the Cyl-Tel electronic liquid level gauge so it can be readily upgraded in the field to transmit data to DataOnline’s secure website. DataOnline is a leading global provider of M2M (Machine-To-Machine) solutions specifically for the monitoring of remote assets.

Nearly 40 years ago, Veite Cryogenic Equipment and Service (VCE), officially opened in North Ridgeville, Ohio. Today, with Jim Veite at the helm, VCE serves the United States and Canada from its headquarters there. In this article Thomas J. Harmon describes VCE business platform, which involves the design, manufacture, installation, modification and repair of all types of cryogenic and high pressure systems.

The prices of hot-rolled sheet steel used in the manufacturing of industrial gas cylinders have increased to their highest levels. Some ore suppliers have documented increases of over 60 percent in the past year. Freight costs and fuel are also increasing. These factors make cylinders more valuable and more expensive than they have ever been. In this article, Ashley Madray, Vice President, Gas Innovations, explains how best to manage the utilization of these important assets.

Many are concerned about the economy and its impact on business and owners are looking for ways to improve operational efficiencies. In this article, Paul Matlock and Al Coulter of TAP Resources, explain the concept of Lean Thinking for the gas distributor, a proven way to make changes and improve efficiency along your supply chain. TAP Resources says, “Assume everyone in your organization can be imaginative if they are well trained and continually involved in improving operations.”

Manufacturers and buyers of high-pressure cylinders in the United States face a marketplace challenged by escalating costs for raw materials and fuel, but buoyed by favorable exchange rates and technological improvement. To offset these costs, cylinder manufacturers are looking for ways to improve efficiencies. Process changes include constructing cylinders with new materials, developing new cylinder or valve designs, and making changes in cylinder configuration. In this article Richard Harris describes the high-pressure cylinder market and interviews leading cylinder manufacturers, including Taylor-Wharton, Luxfer, Dynetek, Norris Cylinder, Western International Gas and Cylinder and Worthington Cylinder.

The earliest civilizations developed technologies that allowed them to refine ore to create tools. Welding and cutting technologies today derive from a long process of advancements throughout history. This article traces the history of welding and cutting from prehistory to the twentieth century, focusing on innovations in the use of gas, their applications in rubber, and weld preparation.

Summer is a time of relaxation. Industrial gas products and technologies have been developed to help make summer an enjoyable season. This article looks at the role of industrial gas technologies in scuba diving, disinfecting swimming pools, purifying water, and carbonating or decaffeinating beverages.

There are many new products being introduced by manufacturers and suppliers of systems and equipment for industrial, medical, and specialty gases. These can help streamline supply or improve customer efficiencies through the cutting and welding distributor. This article discusses the different products and services offered by Genstar Technologies such as welding automation and cutting automation systems.

CryoGas International has invited major industrial gas companies to respond to questions about the laser and welding market. Laser cutting and welding is faster and more precise than other technologies and is standard in the automotive and aerospace industries. This article discusses the applications of laser cutting and welding, developments in laser technology, and growth in the market.

Compared to conventional mechanical and electrical processes, lasers are faster and more accurate in welding, cutting, marking, and drilling applications. The markets for industrial lasers include photovoltaics and sheet-metal cutting. This article examines the market and applications, the specific advantages of lasers technology, and two companies that are involved with the market, U.S. Laser Corporation and Volvo.

As part of this year’s market update, CryoGas International invited the major industrial gas players to share their thoughts on the Latin American market. By all accounts, operations in Latin America continue to grow and expand. This article features perspectives from Air Liquide, Air Products, Indura, Linde, and Praxair.