Outotec's Approach to Sustainable
Energy and Water Solutions
Mika Saariaho
Senior Vice President, Energy & Water
Outotec CMD 2013
December 4, London
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Outotec’s Energy & Water business
Our strategic intent:
The leading provider of sustainable
minerals and metals processing
solutions,
and
an innovative provider
of sustainable energy and
water processing
solutions.
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Energy: Innovative solutions for various
fuels such as biomass, coal, sludge,
agricultural and industrial by-products as
well as sorted waste. In addition, we offer
solutions for oil winning from oil shale
and phosphorus recycling from sewage
sludge ashes.
Water: Our solutions produce water that
meets environmental discharge
standards, maximize water recycling, and
reduce water and energy consumption.
Business opportunities to address planetary
boundaries
Challenges/ opportunities:
Source: Rockström et al. 2009
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
Renewable, CO2 neutral energy from
biomass and waste

Non acidic, calcined P-fertilizers

Removal of pollutants from ores,
concentrates, waste and wastewater

Nitrogen recovery in municipal and
industrial waste water

Phosphate recovery from sewage
sludge, farmyard manure and animal
by-products

Municipal and industrial freshwater
supply and waste water purification

Optimised landuse in industrial
operations, e.g., paste solutions and
pond water management
In industrial water treatment, there is a sizable CAPEX market
with fast growth in mining, metals and chemicals
Growth
CAGR 2013-2020, %
Industrial water treatment CAPEX market size 2012
EUR billion
Outotec’s
focus area
4
(12%)
Food and beverage
Power generation
Oil and gas
Microelectronics
Mining
29
(88%)
Chemicals
Pharmaceuticals
Refining and petrochem
Other
Focus area includes: Mining,
metals and chemicals
Note: Additional OPEX market
opportinity larger than CAPEX
Source: McKinsey
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7
7.2
7
4.2
13
3.0
6
2.4
8
1.8
8
1.7
6
1.3
5
1.3
Pulp and paper
1.1
2
Textiles
0.6
4
Automotive
0.6
4
Metals
0.5
15
Other
6.8
4
Total
32.5
7
Water is essential for mining industry
Water is used in
all the steps of
metals & mineral
processing.
Water usage can be
optimized only if core
process is fully understood
= Outotec’s unique competitive edge
 Right water in right place
 Right treatment for each water
 => Savings in CAPEX and OPEX
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Demand drivers in m&m (1/2): many new mining
projects have been initiated in water strained areas
= Major mining areas located in water stressed locations
▪ Major challenges:
▪ Negative water balances
▪ Water access variations and seasonal effects
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Demand drivers in m&m (2/2): many existing plants also
require more advanced water treatment

Sub-scale initial investment into water (environmental)
management
Challenges realized later and often more difficult to
solve than in the greenfield phase

Increased demand for water recycling

Tightening environmental regulation

Declining ore quality

Increasing social pressure
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Example of water management impact on mining
OPEX in Chile

Cost of water treatment is typically varying between 0,5–5 USD/m3
 With right water management significant savings can be done
 1 USD/m3 lower treatment cost means 315 million USD savings in OPEX
Source: Cochilco, Frost & Sullivan analysis
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Outotec’s life cycle offering in Industrial Water Treatment
Key equipment and technology supplier
 High-tech components including unique mixers, reactors
and analyzers
 Deep customer processes knowledge
 Ability to integrate proprietary equipment to customers
process
 Guarantee of specific components and technology
deliveries
Solution provider
 Turn-key water treatment solutions
 In-house key equipment and processes
 Installation and replacement
 Solution for the entire system = holistic water management
approach in metals & mining
 Guarantee of the entire system
 Conceptual and basic engineering
Service provider
 Services for water treatment plants such as water
chemicals, analysis, measurements and plant audits
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Outotec’s Water business going forward



Main focus in metals and mining industry where
supporting full solution offering through holistic water
management
Diversification into other industrial segments where
customer and technology synergies
Organic growth supported by technology acquisitions
and partnerships
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Project example: Codelco MMH, Atacama, Chile

New roaster, Acid plant, Gas
Cleaning and Effluent Treatment
Plant (ETP)

Total contract value over 130
MEUR

Size of ETP appr. 18 MEUR
•
•

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Basic and detailed enegineering, supply
of proprietary and process equipment,
installation, startup services and training
Treated effluent will be sent to
Concentrator to improve water efficiency
Cold commissioning in Dec 2013
Project example: NCS – Tsumeb, Namibia

Existing smelter modification: gas
cleaning, sulfuric acid and
effluent treatment technologies

Total contract value approximately
EUR130 million

Foundation work in progress

The project is scheduled for
completion in the third quarter of
2014
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VIDEO: Let’s have a look how it all works…
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Energy market opportunity – key focus on
renewables
Renewable energy investments 2012
EUR bn
Source: Bloomberg/UNEP
Outotec’s focus area
6
(5%)
Other
108
(95%)
Focus area includes: Biomass and waste-to-energy
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Outotec’s approach
 Strategic focus on sustainable,
resource efficient energy
production
 Grow existing business organically
and with targeted acquisitions to
strengthen technology portfolio
 Analysis, development and/or
acquisition of next generation
technologies
Increasing need for renevable energy: Sustainability challenge
following from growing power demand
Global Energy Demand Outlook
+1.6% pa
(2011-2030)
20112030
p.a.
7.6%
2.0%
2.6%
1.2%
+2.5% pa
(2011-2030)
2.0%
+0.3% pa
(2011-2030)
Source: BP Energy Outlook 2030, published Jan 2013
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0.8%
Double-digit market growth expected in waste-to-energy
resulting in opportunities for technology providers
Source: Frost & Sullivan analysis 2013
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Outotec is leading the way in biomass and
waste-to-energy

Outotec is the pioneer of fluidized
bed technology both in the
minerals industry and in biomass
energy systems

Outotec has delivered over 100 energy
systems for biomass fuels

Outotec has experience of using over 250 different varieties
of biomass fuels

Outotec has been designing and delivering
• biomass energy systems since 1973
• biomass gasification systems since 1985
• biomass advanced staged gasification systems since 2000
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Fuel diversity
The fuel you are using today may NOT be the fuel you use in
the coming years…plan for the future now!
Samples of fuels used in Outotec’s fluidized
bed systems:
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Outotec’s Fluidized Bed Technology
Sludge
Power
Production
Biomass
Process Heat
Tailored design:
Rejects
Oil Shale
and others
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



Fluidized bed thermal oxidizers
Fluidized bed advanced staged gasifiers
Fluidized bed gasifiers
Circulating Fluidized beds
Fertilizer
Environment
Project example: Manure incineration – Hereford
(TX) facility
The multi-fuel Outotec Energy Products system is designed to convert
420,000 tons of cattle manure a year into energy for an ethanol plant.
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Project example: Plainfield Renewable Energy,
Plainfield, CT
Renewable energy,
Wood/C&D
348,000 lb/hr steam
1565 psi, 955 deg F
43.5 MWe
Completion: Winter 2013
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Project example: Eucalyptus Tree Wastes (Italy)
Renewable energy
164,000 lb/hr steam
900 psi, 900 deg F
18 MWe
Completion: 2013
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Under Execution: Largest CHP plant in Turkey
Sludge & Rejects
Throughput
450,000 mtpy
Electric power
30 MWel
Completion:
Summer 2014
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Under execution: Outotec’s expertise leveraged
in new energy area of oil winning from oil shale
Optimization of
equipment and process
Pre-filling of
First Oil Shale
retort with
to plant
limestone
First oil shale
to CFB
Increasing of
First oil from plant capacity
and availability
First circulation of Enefit280
heat carrier and
Enefit 280, Narva, Estonia
heating up of retort
Production



Oil
37 t/h / approx. 290 000* t/a (~1.7 mbbl/y)
Gas
9700 Nm3/h / approx. 78 MNm3/y
Electrical power
28 MW (steam 114 t/h)
Efficiency
From 1 t of dry oil shale the plant could produce:

Oil
0.152 t

Gas
39.6 Nm3

El. Power (net)
approx. 18 MW
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Stable combustion
of oil shale in CFB
Steam blowing
Sustainable waste water sludge treatment

Application of sludge on farmland is
becoming very restricted.

Thermal oxidation is an efficient means
for treatment of sludge.

Outotec also has proprietary
technology for recovering phosphorus
from ash for fertiliser manufacturing.

Outotec has designed and built 14
sludge treatment plants in Europe and
7 in the US.

Outotec is currently designing and
constructing the sludge treatment plant
for the city of Zurich.
Converts 100,000 tonnes per year of
dewatered sludge from Zürich State to
electricity and district heating
Contract value ~50 MEUR
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Sustainability through overall materials efficiency:
Phosphate recycling

From ash to fertilizer with Outotec’s
ASHDEC technology
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Different fertilizer production options downstream
Example: production of NPK fertilizers
from renewable phosphates, scale 12
mtph, at Lonza AG; Visp, Switzerland
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In summary: Outotec Energy & Water business
 Outotec mission to be ”… an innovative provider of
sustainable energy and water processing solutions”
 Market opportunity driven by global sustainability
agenda
 Focus on technology company offering and life cycle
solutions
 Both organic and in-organic growth options evaluated,
focus on customer and technology synergies
 Also looking at longer-term growth options for Outotec
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Q&A
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