From Talk to Action in The Post-Pandemic World

Green hydrogen, energy recovery, a shift towards natural refrigerants and alternative marine fuels: with the green transition accelerated by the war, investments in next-generation solutions are on a sharp rise.

Chemical and Process

Marko Rantala, Chemical and Process Business Director at Vahterus

The outlook for the chemical industry in 2023 is challenging, especially in Europe. Natural gas is the main feedstock for many processes in the industry and due to the interruptions in its supply (and cost), chemical production in Europe has declined. Despite the reduced production volumes, however, the need for heat exchangers remains positive – companies continue developing their decarbonisation strategies and investments in sustainable solutions. Additionally, a shift in production capacities with better availability of feedstocks and access to the growing markets has resulted in significant orders and growth for Vahterus in this sector during 2023.

In process industries, there is vast potential for energy recovery from different process streams, improving internal plant efficiency or providing energy for external users – either directly or with industrial heat pumps. Steam is often used as a heating medium in process industries and there
is increasing interest in steam-generating heat pumps.

Another growth area in our business in the chemical and process sector has been green hydrogen applications. Producing hydrogen through electrolysis using renewable power offers a huge opportunity for the heat-pump industry. Investments in green hydrogen, especially in colder climate areas like the Nordic Countries, are allowing the excess heat from processes to be utilised in district heating.

To create the best solutions for these heat-pump applications in the process industry, expertise in general refrigeration and the heat-pump process is required, as well as knowledge of the applications and industry-specific requirements. Our team is glad to help.

Refrigeration

Heikki Oksanen, Refrigeration Business Director at Vahterus

A record warm summer is behind us, as well as record dry conditions. Food production is in danger. We’ve been forced to limit water consumption. A long winter is ahead of us. The gas crisis is yet to be solved in Europe.

Energy recovery and energy saving needs to be taken seriously. Geothermal energy and heat pumps could be part of the solution. We can’t operate without heating and cooling, but this doesn’t justify accelerating global warming or contaminating drinking water. Both companies and customers must take responsibility for future decision-making.

These will be the central themes as we develop future solutions together with our customers. Natural refrigerants, safety issues and technical innovations will create a basis for building a safe future for the next generation. We look forward to a busy heat-transfer winter.

Energy

Frans Launonen, Energy Business Director at Vahterus

2022 brought a handful of challenges, many of them related to war and the unstable political climate. With increasing inflation, higher interest rates and the energy crisis, there’s a lot to cope with. Despite that, Vahterus’ business in the energy sector has grown. Every crisis brings with it an opportunity to create something better. TTF gas prices in Europe have reached an all-time high during the last year. Asia is competing with Europe for the same LNG cargoes. But peaking gas and electricity prices combined with scarce availability have provided a major push for process-efficiency improvements and more emphasis on cutting operational expenses. High oil prices are triggering Oil & Gas projects. And despite the war, most of the western countries have become closer and more united than ever. In the long term, the work currently being carried out to replace Russian gas in Europe will increase reliability and boost the renewable energy sector. The time of cheap gas is over.

And while energy is in transition, so is our energy business. Only a decade ago, our focus was on onshore power generation, especially steam and district heating. Nowadays, a big portion of our energy business is marine and offshore-related. As Vahterus’ new Energy Business Director, after taking the helm from my predecessor Tobias Häggblom, my ambition is to further develop our sustainable solutions for our customers’ businesses.

One opportunity is alternative marine fuels. Until recently, only about 1 percent of a fleet of 100,000 commercial vessels has used alternative fuel. Times are about to change: the number is now closer to 30% of vessels on our global newbuild order book (approx. 5,100 vessels order in July 2023). In terms of gross tonnage, it is even higher: 50% of the current order book. LNG will continue to be the dominant alternative fuel in the short term, but meanwhile methanol has shown the biggest rise during the last years. Vahterus is delighted to have been selected as the heat-exchanger supplier for several of these newbuilds. In addition, carbon-free fuels such as ammonia are around the corner. Vahterus is more than ready for this, thanks to our years of experience and development around natural refrigerants. Fully welded Plate & Shell units are the perfect fit for demanding applications, providing extreme safety levels, and avoiding harmful and dangerous leakages.