Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - CCR (Rotative Cylinder Compressor for energy efficient industrial compression process)

Teaser

Gas compression with piston reciprocating compressors dates from 19th century and it is widely used today for a vast range of industrial applications. The process of compression is energetically inefficient as just ten percent of the energy consumed becomes mechanical energy...

Summary

Gas compression with piston reciprocating compressors dates from 19th century and it is widely used today for a vast range of industrial applications. The process of compression is energetically inefficient as just ten percent of the energy consumed becomes mechanical energy as compressed gas, being the rest of the energy wasted in heating the gas, energy that must be dissipated incurring an additional energy expenditure.
This problem is capital for compressing intensive industries as the Oil & Gas industry where 20% of total energy consumption is directly related to gas compressing activities (transport, pumping and dosage of gases). To remain competitive in comparation to other energy sources, Oil and Gas companies are under big pressure to reduce the global energy generation costs so there is a need to reduce their production costs being among them one the energy consumption.
Arizaga Bastarrica y Cia S.A. (from now on ABC COMPRESSORS) has developed the Rotating Cylinder Compressor (CCR – Compresor Cilindros Rotativos) which adopts a disruptive concept of piston compression based in centrifugal forces. This new compressor concept enables to reduce up to 20% the energetic consumption of compressors eliminating the need of water cooling and reducing considerably the dimension (and constructive cost) of the compressor.
Oil and Gas market is outlined as principal market for this project due to the big size of the market (around 50% of global compressors), growing trends, and market pressure for reduce energy consumption. More than 10.000 compressors are sold nowadays, and it is expected to have a steadily growth due to natural gas plants proliferation and old compressors replacing market in Europe and US. The potential customers of the product are the following Engineering firms that integrate compressors in plants (I.e. Sener, Abengoa, Turbomach) being final users Oil and Gas plants that use the compressors in their processes (Iberdrola, Gas natural,) CCR solution meets all stakeholders needs as the solution satisfy high quality standards giving an important energy consumption reduction, with a more economic product price

Work performed

As a result of the feasibility study, it can be concluded that the business related to the CCR compressors commercialization is feasible. Business related previous unknowns have been cleared and the path to reach commercialization stage has been marked.
There is enough market for the application of CCR: 10.000 compressors/year in targeted Oil & Gas market segment + 1.500 compressors/years in current markets (Pet Blowing and CO2 Brewers) with CAGR between 5-7%.
There is clear differentiation from current solutions, providing 20% of reduction of energy consumption for compressing processes as well as other benefits (elimination of water phases, size, price, etc.) and there is no other evolutions in market that could jeopardize the introduction in the market. The concept is patented and CCR has total Freedom to Operate worldwide.
As being CCR a new concept of compressor, there is currently no API standard for CCR. As being CCR a piston compressor, an extension of actual API 618 or new standard for this kind of new concept has to be seek. To get this approval, a workgroup must be open with API experts, so demonstrable performance on compressors in other industrial markets (PET, CO2, etc.) will be key for API approbation.
Product scan have been done for manufacturing needs identification and to stablish product pricing for being profitable for the company as well as acceptable price for the market. As being ABC a compressor manufacturer that sells over 200 reciprocating compressors per year, it eases the launch of the business as first sales can be benefited from current manufacturing and sales structure without big investments. Anyway, growing demands have been studied and scaling needs have been studied in all business key activities.
Sales projection have been made assuming a penetration of 5% in Oil & Gas market and 20% in current markets for tenth year, rising the turnovers of the company to 188 M€ and employing to 315 persons. A sensitivity analysis of the business has been made bringing the business into stress (reduction of the market penetration, growth of manufacturing costs or reduction of the price of the product), so the business boundaries are clear and are assumable.
So, the key step to overcome for the business to come true is the ‘demonstration project’ that will demonstrate the technology, thus, enabling them to get over the ‘traditional fears’ of a new product. This way, in first instance clients for traditional markets can be convinced to acquire CCR compressors and this results and introduction in these markets will ease the API standard obtention or creation to introduce in Oil & Gas market.
Funding support of SME Accelerator t will be a key aspect to maximize the impact of the CCR advantages and minimize the ‘time to market’. Thanks to the EC support, the demonstration project development and dissemination of results will be quicker.

Final results

The main advantages provided by CCR compared to existing solutions (suitable for different kind of applications) are as follows:
• Energy consumption reduction. 15-20% of direct energy consumption reduction is obtained with CCR (and 15-20% CO2 emission reduction in energy generation).
• Water consumption elimination. No need to cool gases in compression process as for conventional compressors.
• Dimension reduction (70% approximately) due to elimination of cooling phases (cooling tower and piping). Dimension reduction enables to place compressor close to equipment (usually are placed in separate spaces due to big size of compressors). This will help to reduce as well gas ducts from compressors to gas using point involving an additional cost reduction for company.
• Fabrication cost reduction of compression unit (30% approximately) due to CCR concept simplicity. Additionally, cooling tower cost and cooling piping cost is eliminated (30-50.000€ depending in compressor). This allows the reduction of commercial price of the compressor.
• Noise reduction: low speed compression will considerably reduce noise level, conventional compressors vary between 90 to 100 dB making it impossible to have them close to working areas without protection, CCR will not require such protection.

Website & more info

More info: http://www.abc-compressors.com.