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Energy Recovery, Inc. Message Board

  • arvedarve arvedarve Mar 8, 2013 5:16 PM Flag

    ERI's bluff in gas processing

    Sweetening of raw natural gas is cited by ERI an enormous new growth market for
    pressure exchangers. Theoretically perhaps, but realistically not obviuos, because unlike
    water, the cost of potential down time is astronomical. Take a 50 MM cf/Day natural gas cleaning plant
    using about 100 GPM amine flow pressure exchanger that cost about $ 15,000.00, the potential
    revenue loss for a day's operational interuption at $ 15/MMBTU (international price) is in the order
    of $ 750,000.00. When touting paybacks of 3-5 years, the revenue loss equals the investment cost
    in 30 minutes downtime for this application, while for desalination the daily revenue loss is about $ 300.00.
    No wonder Tom Roony is quiet about "up time" and states field trials are "promising"! Although pressure exchangers has the best uptime, it subtracts when it becomes an added component and it would take many years to establish long term reliability under such ultra extreme revenue sensitivity. No accident isobaric energy recovery, such as ERI's PX pressure exchanger is established in SWRO desalination with cost of interuption being 0.04 % of gas prosessing.

    Sentiment: Strong Sell

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    • I have owned this dog forever and lost my shirt. but, perhaps they are developing new systems specifically for nat. gas that will be viable? Wo knows? All I know is that it is too late for me to sell.

      Sentiment: Hold

    • Very good insight Arvedarve. The level of contaminants in the rich amine stream is orders of magnitude higher than the brine stream in SWRO applications where PX has made its mark. PX MTBF may be measured in days in a gas plant. Throw in the presence of gas bubbles (a PX killer per their warranty) and you have one big mess.. Not to worry, the intention may be to sell ERI to a large cash rich company before things become self-evident..So buy now but be ready to bail when the bubble pops..

      Sentiment: Buy

    • Thank you arvedarve for putting some numbers to the cost of downtime in a gas processing plant. Putting real numbers to an issue always sheds new light on vague and general claims.

      I can't argue with your logic, but if the problem is so obvious to you, why do you think the gas companies seem so interested in the technology? Why are they paying for trials?

      Sentiment: Buy

 
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