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Ener-Core and the Dresser-Rand Business Enter into Commercial and Manufacturing License Agreement for Ener-Core’s Power Oxidizers

The Dresser-Rand business gains exclusive rights to manufacture and sell Ener-Core’s
1 – 4 MW range Power Oxidizers to industrial customers

Ener-Core shifts to a licensing fee business model with the Dresser-Rand business

IRVINE, Calif.– Ener-Core, Inc. (OTCQB:ENCR), the world’s only provider of Power Oxidation technology and equipment that generates clean power from waste and low-quality gases from a wide variety of industries, signed a Commercial and Manufacturing License Agreement (CMLA) with the Dresser-Rand business, part of Siemens Power and Gas Division. The Agreement grants the Dresser-Rand business the exclusive right to manufacture Ener-Core’s Power Oxidizers within the 1 to 4 MW power capacity range and to sell the Power Oxidizers (integrated with the 2 MW KG2 turbine manufactured by the Dresser-Rand business) directly to industrial customers.

The CMLA will be effective upon the successful completion of the Full-Scale Acceptance Test of the 2 MW system, which is expected to reach completion in July.

The CMLA will replace the existing November 2014 Commercial License Agreement (CLA), which did not allow for the manufacture of the Power Oxidizer system; upon the effectiveness of the CMLA, the existing Commercial License Agreement (CLA) between the Dresser-Rand business and Ener-Core will expire.

As this new CMLA will allow the Dresser-Rand business to manufacture Ener-Core’s Power Oxidation systems, it will enable Ener-Core to reduce its manufacturing infrastructure and lower its operating costs, thereby allowing Ener-Core to focus on its core business of developing and deploying additional applications for its groundbreaking technology.

What does < 1ppm NOx mean?

The Ener-Core Power Oxidizer technology produces heat and power with less than 1ppm in its exhaust stream. It is the only technology available in the world today that can achieve this ultra-low level of NOx. But what does this actually mean? How big of a difference is this really?

Where does the NOx come from?

The majority of NOx emissions come from 2 major areas of human activity[1]:

  • Traffic: 40%
  • Industrial Energy Use and Energy Production/Distribution: 34%

The move from traditional combustion based energy generation to wind and solar exerts a positive effect on the total emissions from the Energy Generation Sector, but this still remains a minority generation capacity and combustion of fuels will remain with us for some time to come.

Traffic remains and will remain the largest single source of NOx pollution until the combustion engine is phased out and electric cars become the norm. The recent scandal concerning emission level cheating by “certain” car manufacturers has highlighted this issue but the real challenge is the total volume of traffic on the roads and the fact that although the latest emission standards for automobiles might be improving the NOx situation, it is far from being eliminated.

How are governments reacting to the NOx problem?

Despite the high associated costs that these emissions cause, the move to tackle them is slow. In most parts of the world there are no limits on the actual amounts of NOx emitted, either by industry or by individual car emissions. Some parts of California in the USA, are leading the way by setting limits for the number of tons of NOx that a company may emit in a single year, as well as limits on emission concentrations (usually specified in mg of NOx per Nm3 of industrial exhaust), but this is the exception and not the norm.

WTEI Project Portfolio

WTEI Project Portfolio

Waste to Energy International has extensive WTEI Project Portfolio. It represents waste-to-energy plants, recycling and sorting facilities, landfills. All of these enterprises were developed, designed, and constructed by our team.

WTEI Project Portfolio - Plant 4 Moscow

Please visit Project Portfolio page on our site to look at:

Waste to Energy Plants

  • Municipal solid waste thermal treatment plant 2, Moscow
  • Medical waste thermal treatment plant “Ecolog”
  • Municipal solid waste thermal treatment plant 4, Moscow
  • Hazardous industrial waste thermal treatment plant “Ugreshka”

Recyclables Processing Facilities

  • PET Processing Facility “Rudnevo”, Moscow
  • PET Processing Facility “Kotlyakovo”, Moscow

Construction and Rehabilitation of Landfills

  • Landfill “Iksha”
  • Landfill “Khmet’evo”
  • Landfill “Salar’evo”
  • Landfill “Sosenki”

Advanced Pyrolysis Plants

Plants shown there are constructed by our technological partner, producer of ENCORE advanced pyrolysis technology.

Cost of incineration plant

Development of waste-to-energy facilities encounters a number of problems, and one of the biggest among them is the price. There are so many fairy tales about this business, so many fantastic technologies offered at very low prices, that it creates wrong expectations of clients concerning price level. A client should recognize average price level in industry before commencing the project.

Recently, we showed that there is no other reference point for any waste-to-energy technology except incineration plant, since it is most prevalent and approved thermal treatment technology in the world so far, do you like it or not. Every newly developed facility should be compared with price of incineration plant with similar capacity. But what is the price level of incineration and how does it change with capacity?

Basing on our construction experience and contacts with world top producers, we consider that price of incineration plant is well described by quite recent independent research, which abstract can also be downloaded in pdf from our site. It contains the following empiric formula:

I = 2.3507×C0.7753,
where I is the investment cost in million dollars and C is the plant capacity (1000 metric tons of waste/year).

CAPEX-of-incineration-plant

According to the formula, cost of 40,000 tpa plant is $41 mio, or $1,026 per ton of annual capacity. Medium-sized 250,000 tpa plant should cost $169 mio, or $680 per ton of annual capacity. These numbers give us first estimation of how much waste-to-energy is, and, what is more important, quite adequate dependence of CAPEX per ton of annual capacity on the capacity by itself (blue curve).

CAPEX
USD mio
Per ton
USD/tpa

Here is the simple calculator allowing to get values for a certain annual capacity.

We should understand that the formula discussed relates to municipal solid waste (MSW) to electricity plants and can vary depending on the technology implemented – it could be burning on grate or on fluidized bed. Hazardous medical and industrial waste processing costs significantly more, requires rotary kiln technology for big volumes and even more sophisticated flue gas cleaning systems.

There is a lot of talking on the market concerning the price of waste-to-energy facilities, and a number of companies making an attractive offers, but they all have one problem – nothing works. Client should ask low-cost bidders to show what do they have under commercial operation. And upon the predictable answer, return to commercially approved technologies. No matter what is it: pyrolysis, gasification, incineration or plasma treatment – price deviation from the above will be no more than +-50%.

It is the market. No miracles here.

Update: We unveiled the online service for evaluation of financial feasibility of a waste-to-energy power plant. If you know input parameters of your proposed plant, you can request finacial modelling by the link below.

Why incineration?

Nowadays world market offers a number of technologies to recover energy from waste. Some of them are popular as pyrolysis, gasification or plasma treatment. Another as incineration are often treated as outdated and even discarded.

In our daily activity, we encounter a number of common delusions concerning incineration, which lead to total misunderstanding of prevalence and roles of modern waste-to-energy technologies. That is why we think it is needed to comment the current situation.

The map below shows quantities of waste-to-energy plants in Europe (blue numbers) and amounts of waste in million ton being annually incinerated (red numbers).

cewep-eu_map_2013-p60