Orion Sharply Reduces Air Emissions with New Technology at Borger, Texas, Plant

Rhea-AI Summary

Orion Engineered Carbons (NYSE: OEC) announced a $60 million project to significantly reduce air emissions at its Borger, Texas plant. This upgrade, part of the company's sustainability initiatives, will cut nitrogen oxide and sulfur dioxide emissions by 90%, eliminating 23 tons per day. The project also enhances the plant's cogeneration system, allowing for electricity generation from the carbon black production process, which will enhance energy efficiency and potential revenue through grid sales. Orion has also upgraded its emissions control technology in additional U.S. facilities and anticipates increased free cash flow for future growth investments.

Positive

• Investment of $60 million to reduce emissions at the Borger plant.
• 90% reduction in nitrogen oxide and sulfur dioxide emissions, improving air quality.
• Enhanced cogeneration system increases energy efficiency and potential revenue.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Orion Engineered Carbons (NYSE: OEC), a global specialty chemicals company, said today it will sharply reduce air emissions at its Borger, Texas, plant with new control technology.

The $60 million project also involved upgrading the site’s cogeneration system, which takes heat created by the carbon black production process and converts it to electricity that can be used by the plant. The electricity is also sold back to the power grid. Such energy conservation equipment is used by many Orion plants worldwide.

“Investing in emissions control technology and generating more clean energy are key to our commitment to sustainability,” Orion CEO Corning Painter said. “I want to commend our engineers, the Borger team and our contractors for the timely completion of this complex project despite the Covid-19 pandemic and supply chain disruptions.”

The new emissions technology will lead to a major improvement in air quality, eliminating 23 tons of nitrogen oxide and sulfur dioxide emissions per day – a 90 percent reduction. The Borger plant produces carbon black for rubber and specialty clients.

Orion also recently upgraded its emissions control technology at facilities in Ivanhoe, Louisiana and Orange, Texas. Later this year, Orion plans to finish its final U.S. emissions project at its site in Belpre, Ohio.

“We are proud that we’ve upgraded these plants, but it was an extremely demanding undertaking,” Painter said. “As we complete the Belpre project, Orion will have significantly more free cash flow to invest in growth projects. 2023 marks a new era for the company.”

Upgrading the Borger plant supports Orion’s efforts to achieve the targets in its sustainability-linked term loan. Last year, Orion was one of the first public companies to take out such a loan, which has interest rates that go up or down depending on whether a company meets specific environmental, social and governance goals.

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 14 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.

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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 are the details of Orion Engineered Carbons' emissions reduction project?

Orion Engineered Carbons is investing $60 million in its Borger, Texas plant to reduce air emissions by 90%, eliminating 23 tons of nitrogen oxide and sulfur dioxide daily.

How much will Orion Engineered Carbons reduce emissions at its Borger facility?

The project will reduce emissions by 90%, eliminating 23 tons of nitrogen oxide and sulfur dioxide per day.

What is the significance of the cogeneration system upgrade at Orion's Borger plant?

The cogeneration system upgrade will convert heat from the carbon black production into electricity, enhancing energy efficiency and allowing for sales back to the power grid.

What are Orion Engineered Carbons' future plans regarding emissions control technology?

Orion plans to complete its final U.S. emissions project at its Belpre, Ohio site later this year, further improving its sustainability efforts.