Cogeneration Technology Installed at Orion’s Plant in Louisiana

Rhea-AI Summary

Orion Engineered Carbons (NYSE: OEC) has successfully installed a cogeneration technology at its Ivanhoe plant in Louisiana, enhancing operational efficiency. This technology converts waste steam from carbon black production into electricity, reducing reliance on the grid and minimizing downtime. CEO Corning Painter emphasized its significance for consistent production, particularly in the Gulf Coast region, which faces severe weather challenges. Additionally, improved equipment reliability is expected, preventing costly shutdowns. This upgrade follows the late 2021 installation of air emissions control technology, marking another step in Orion’s commitment to sustainable practices. Overall, these innovations aim to bolster operational performance and align with the company's environmental objectives.

Positive

• Installation of cogeneration technology at the Ivanhoe plant enhances production efficiency.
• The technology reduces grid reliance, leading to less downtime during severe weather.
• Improved equipment reliability expected, preventing costly shutdowns.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Orion Engineered Carbons (NYSE: OEC), a specialty chemicals company, announced today that cogeneration technology that produces renewable energy has been installed at its Ivanhoe plant in the southern U.S. state of Louisiana, making the facility more efficient, reliable and sustainable.

The cogeneration system, which includes a steam turbine generator, uses the waste steam from the carbon black plant’s production process and converts it to electricity. The energy can be used to power the facility as well as be exported to the local grid.

“The new technology will reduce our reliance on the grid, which should result in less downtime at the plant and more consistent production,” Orion CEO Corning Painter said. “This is especially important in the Gulf Coast region of the U.S., where severe weather can pose a threat to the power supply. With this cogeneration system, we expect to be better able to continue safely operating and producing the products our customers need.”

Another anticipated benefit of the technology is improved equipment reliability. Any power failure can shut down the plant suddenly, causing fatigue and degradation with carbon black production equipment, which requires significant cool-down and warm-up periods.

Similar cogeneration technology is used at many of Orion’s plants worldwide.

This is the second significant upgrade at the Ivanhoe plant in the last three years. In late 2021, Orion installed air emissions control technology that captures pollutants and converts them to sulfuric acid, commonly used in a wide range of products -- from fertilizers and glue to dyes and car batteries. The project was a major milestone in Orion’s commitment to developing circular solutions for its waste streams.

About Orion Engineered Carbons

Orion Engineered Carbons (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has innovation centers on three continents and 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit orioncarbons.com.

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements of future expectations that are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time and it is not possible to predict all risk factors and uncertainties, nor can we assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information, other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230420005091/en/

William Foreman

Director of Corporate Communications and

Government Affairs

Orion Engineered Carbons

Direct: +1 832-445-3305

Mobile: +1 281-889-7833

william.foreman@orioncarbons.com

Wendy Wilson

Head of Investor Relations

Orion Engineered Carbons

Direct: +1 281-974-0155

wendy.wilson@orioncarbons.com

Source: Orion Engineered Carbons S.A.

FAQ

What technology was installed at Orion Engineered Carbons' Ivanhoe plant?

Orion Engineered Carbons installed a cogeneration technology that converts waste steam into electricity.

How does the new cogeneration system benefit Orion Engineered Carbons?

The cogeneration system reduces reliance on the grid, leading to less downtime and improved production consistency.

What previous upgrades have been made at the Ivanhoe plant?

In late 2021, Orion installed air emissions control technology at the Ivanhoe plant.

Who is the CEO of Orion Engineered Carbons?

Corning Painter is the CEO of Orion Engineered Carbons.

What specific region's weather challenges does Orion Engineered Carbons address with the new technology?

The new technology addresses severe weather challenges in the Gulf Coast region of the U.S.