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

An investigation in the Middle East region and what opportunities exist for industrial gas companies there. This feature also looks closely at what is driving demand for industrial gases in the Middle east and why the Middle East is seen by some in this industry, as the new “gas frontier.”

The Ethanol industry is experiencing rapid growth as the US discovers the extended value of this renewable energy source. This article concentrates on the ethanol production process within Salof Refrigeration CO., Inc. with a central focus on one particular by-product: CO2.

The Bureau of Land Management (BLM) is a government agency which markets and supplies helium throughout the world. Managing the nation’s Federal Helium Reserve was a quiet program until 2006, when shortages made the news. This article explores the effects of the BLM on the helium world markets as well as the market outlooks for the future.

In this article, Maura D. Garvey explores the various reasons that helium continues to become tighter in the worldwide market. With focus on the past 10 years’ demand market and prices for helium, she explores why helium supply is a large concern and further explores what steps are being developed that with a look into the possible future of this industry.

Fred H. Siemer touches on the liquidity squeeze caused by the collapse of the housing bubble and the sub-prime mortgage crisis is over shadowing the US economy; the difficulty in judging the depth of this crisis; and brings the 2007 forecast for GDP into question. In conclusion he feels that the US economy will experience non-recessionary growth for at least another year.

Jesus E. Gonzalez and Ken W. Miller look at the financial benefits for a distribution alliance among the industrial gas producers. Together they examine the costs and benefits as well as the new technologies available to make this possible proposed alliance possible.

Our own Ebbe Almqvist takes us on a trip through time back to where and when industrial gases were first produced and studied in laboratories in the 18th century. Originally they were held in animal bladders, usually ox or pig, or in specially manufactured gas bags. The first hydrogen balloons used in 1783 by the Charles brothers in Paris were made from silk painted with a rubber solution. Later, gas bags in oiled textile, or silk with gilt paint, were used. Beginning around 1850, metal vessels were made for transporting hydrogen, oxygen, coal gas, carbon dioxide and nitrous oxide. When gases began to be used for medical purposes (mainly oxygen) and for limelight theatres, commercial gas generation started.

Dave Stuart takes a look at the merchant bulk gas supply chain, the physical distribution of products and the costs as they pertain to the customer base. Transporting cryogenic fluids from point-of-production to point-of-use requires specialized, expensive equipment, skilled drivers, management expertise and significant IT technology to allow the gas producer and distributor to operate in a highly competitive market place while maintaining an adequate profit margin. This article examines some of the major operating factors, cost components and methods being employed to improve distribution efficiencies and reduce costs, as well as the key operating factors.

Larry Gallagher provides readers in this report the answers needed in handling toxic, corrosive, and reactive gases in the chemical processing environment that can be hazardous. From large petrochemical plants to pilot pharmaceutical operations or metal processors, day-to-day operations depend on delivering potentially hazardous gases into the process stream in a controlled, safe, and environmentally conscious manner. Even benign inert gases can be a challenge if they are not handled properly. Delivering these gases safely in chemical plants requires strict adherence to a plethora of formal codes and specifications. Failure to achieve safe operation is not an option.

Ron Lucas, corresponding Editor, provides a report on DOT cylinders regulations and the approaches used in testing and re-testing. The two most commonly used approaches, Volumetric Hydrostatic Testing (VHT) and Ultrasonic Examination (UE) dominate the field. Lucas gives a report on these two technologies detailing the benefits and criteria of this testing.

This month’s company profile features AWESCO, an independent distributor of industrial, medical and specialty gases, gas equipment and welding supplies, founded in 1940, in Albany, NY, originally called Albany Welding Supply Company, Inc. This company has grown and evolved throughout the years changing as the needs of its customers changed. An even stronger shift in its goals became apparent as industrial cities began to shift, and industrial cities began to sit idle. It was in 1986 when then Vice President Dave Mahoney purchased the company outright and began to map a new direction for the company. An evolution began and has continued over the last 20 years and sees no signs of slowing down any time soon

This article is the first of two parts. In this first part, Deveaux defines some commonly used M&A terminology; highlights some of the factors that are driving today’s active M&A market; and discusses some of the factors that drive the M&A metrics involving public company transactions.

Eduardo J. Pellitti shows us how the major industrial gas companies report continuous growth in their Latin American business. The Latin economies show good growth and several of the major players have reported strong earnings for 2006. Pellitti breaks it down by country and region showing the areas of strongest growth and potential.

Frank Vonesh, Regional Sales Manager, Proton Energy Systems, discusses factors that affect hydrogen reliability, transport and delivery costs in the US, which is building upon its hydrogen production capacity to serve future needs. Industries that power the energy grid and ensure national security will continue as primary hydrogen users. Recent events have demonstrated that the nation\'s current hydrogen production and delivery infrastructure may not have the capacity to reliably supply lower-priority hydrogen users.

In this annual report, CryoGas International invited four major industrial gas players to present their company\'s hydrogen business platform. The views of Air Liquide, Air Products, Praxair, and Linde on the hydrogen business today and the possibilities for tomorrow are presented. These four companies represent the major providers of hydrogen within the industrial gas industry today. Each one has a unique approach to this complex business and all see themselves as significant players in the emerging hydrogen economy.

Combined heat and power (CHP), or cogeneration, refers to the practice of simultaneously producing heat and electric power from a single source fuel. CHP technology is used in areas where electricity rates are high, fuel costs are low, and for applications with a requirement for both electricity and thermal energy. Hydrogen production, specifically hydrogen production in the US Gulf Coast region is an example of an application that fits this bill. In this CryoGas International Special Report, we will see how the major players have maximized efficiency at H₂ plants through Cogeneration.

Maura Garvey, CryoGas International\'s Director of Market Research, updates readers on The Global hydrogen business, already a huge volume business and one that has stayed on the fast-track for growth in 2006. Steadily increasing demand for cleaner fuels has been the primary driver behind growth in the hydrogen business, most of which serves the refinery market. The production and distribution of hydrogen requires a complex system of sourcing and a variety of processes to refine the crude to merchantable pure hydrogen. The hydrogen business also has its own unique liquid and gas distribution supply chains

Increased and rapidly escalating prices for oil and gas, the push for clean energy, and increased government subsidies for fuel cell R&D are all helping to move fuel cells prototypes closer to commercialization. This article explores the many different types of fuel cells and how they work.

Until the end of the 19th century, the market for commercial oxygen was very small. Business changed early in the 20th Century when a simple method of producing acetylene in large quantities — pouring water on calcium carbide — was discovered. Acetylene was found to be an outstanding light and heat source and different welding and cutting methods that required huge amounts of acetylene and pure oxygen were developed. This was the beginning of the modern day industrial gas industry in Europe.

Managing real growth of an estimated 3.5 percent in 2006, the worldwide economy expanded a bit more slowly than in 2005 when real growth of 3.8 percent was realized. The war on terrorism slows down the North American and Western European manufacturing sectors, escalating energy prices, and increased imports to the US from overseas continue to constrain growth. For 2007, Real GDP growth is estimated at 3.0 percent as economic conditions continue to flatten. As in recent years, when their economies expanded more than twice as fast as that of high-income countries, the developing world is expected to lead growth.

In increasingly competitive environments the major manufacturers serving the welding and cutting industry have all vigorously pursued innovations in equipment, technologies, and gas mixes. The aim is to boost quality and productivity. In this article, Ron Lucas provides a roundup of some key developments.

This article examines the tightening market for argon; a situation caused primarily by increasing demand, a lack of new supply sources and the inability of producers to ring out more supply from existing plants. In this Argon Supply Update, we will take a look at what is driving the increased demand for argon in the US today and the implications of a tightening supply on pricing, market applications, sourcing, and supply schemes.