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