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Development of Environmentally Friendly Flue Gas Purification Solution

Periodic Reporting for period 1 - DEFLUG (Development of Environmentally Friendly Flue Gas Purification Solution)

Okres sprawozdawczy: 2015-05-01 do 2015-10-31

The DEFLUG project aims to develop and commercialise a fully automatic flue gas filtration system for commercial shipping segment. MyCapital OÜ (MYC) in cooperation with its scientific, technical and marketing subcontractors will introduce a very cost-effective and environmentally friendly flue gas purification solution that is based on the company´s unique reagent substance.
The objective of the phase-1 feasibility assessment was to analyse and further develop the business idea and product concept. The phase-1 study tasks included:
1) Business strategy - The specific objective of the analysis was to assess the economic feasibility of the technology by preparing a detailed business plan (including a patent study) to be implemented in accordance with the main innovation project. The business plan will be complemented with a feasibility assessment to specify which market segment will be the most potential and enable us to achieve fast market uptake. The feasibility assessment will be the main input to the commercialisation strategy and selection of initial target markets. The market potential of the flue gases filtration system will be assessed in three separate segments: 1) industrial applications; 2) shipping engines; and 3) private households heating systems.
2) Partner search – to ensure successful product development and to increase the company´s commercialisation capacity, we will conduct a partner search to reach to agreements with additional partners. The aim of the partner search is to prepare preliminary agreements with testing facility, industrial partner and marketing partner. The selected companies will improve our innovation potential and help to validate the novel technology for successful market uptake. Cooperation with industrial partners will also provide us useful feedback of the product development and create an initial sales network.
3) Technical configuration and design for manufacturability - concretizing the company’s specific requirements and harmonizing them in respect of wider production plans. The focus is on adjusting the technology to the manufacturability taking into consideration the price and functionality requirements. From the point of structural design, the component and whole system specifications will be harmonized with the company to facilitate for the further production. Manufacturing technologies will be analysed to specify the most appropriate solution for the company in cooperation with future manufacturing partner.
As the main outcome of the feasibility study, MYC has identified the biggest market opportunity and best competitive advantages in shipping emission control segment. Therefore, the further product development focus will be addressed to European commercial shipping exhaust gases purification solutions within the phase-2 projects. MYC technology´s implementation potential in other market segments will be also constantly monitored besides the main focus.
Based on the phase-1 study results, MYC can also validate both the technical and economic feasibility of the proposed innovation project. All the planned tasks were performed in right time and gave expected results. Comprehensive laboratory tests, prototype system assembly and configuration and experiments, gave valuable input to further product development planning. The tests confirmed the system´s high flue gas emissions purification efficiency; environmental safety of the reagent substance and also pointed out the key points of emphasis for the further development.
Besides selection of the targeted market segment and the project design according to detected end-user needs, in overall, there are no significant changes in project objectives as the feasibility study confirmed the potential of the initial product development and commercialisation plan. Based on new key findings, we have adjusted the product´s features and commercialisation strategy based on end-users study and business environment assessment.
The feasibility study has also pointed out the main categories, where external support is needed for further developing the business and shipping emission control technology. In the next product development and commercialisation phase, we plan to include several subcontractors for technical development, pilot-testing and initial manufacturing of the final products. The detailed business plan and commercialisation strategy developed within the phase-1 project help us to engage relevant stakeholders, attract external investors, form strong phase-2 proposal and ensure successful implementation of the innovation project.
MY Capital OÜ (MYC) is addressing the market need in shipping emission control sector and is developing a unique and innovative exhaust gases purification solution that would address all the user needs and enable to implement IMO´s and EU´s shipping emission control regulations. MYC is a European SME that was founded in 2000 and today the company´s main focus is the development of flue gases filtration system. Based on long-term R&D, MYC has developed and tested a unique reagent and filtration solution that enables to reduce SOX, NOX, CO2 and PM levels within single solution. Our main competitive advantages and the novelty of the solution lies in:

1) Universal solution – Our system reduces effectively SOX, NOX, CO2 and PM within single filtration solution. It is compatible with all engine types and used fuels.
2) Environmentally safe – Our solution does not create a hazardous waste stream and used dilution can be discharged directly into the sea with no environmental impact
3) Simple design and retrofit compatibility – Our solution has simple design and there is no inactive dilution storage need, the whole system is significantly lighter and more compact compared to alternatives. This makes the solution perfect for retrofit installations as the process does not require much space, large construction, engine modification or large investments. In addition, MYC´s solution can be used for upgrading existing scrubber or De-NOX solutions for full emission gases purification capacity.
4) Compatible with all shipping emission regulations – MYC´s solution enables the shipping industry to comply with all SOX, NOX, CO2 and PM related regulations, including IMO MARPOL Annex IV, EU Sulphur Directive, EU shipping MRV regulation and CO2 reduction goals. Compliance with emission control regulations also enables to avoid additional expenses like fines and operating bans for shipping operators.
5) Low initial investment - MYC filtration solution has X-times lower initial investment need due to simple design and all-in-one unique solution. Costs can also be saved from significantly reduced construction and integration works. The exact cost of the initial investment into the system and the running costs depend on the application and flue gases chemical composition, but it is estimated that our system would give around 30-60% savings for industrial users compared to current state-of-the-art filtration systems.
6) Low operating expenses – Smart dilution reactivation process, fully automatic process control, low cost filtration reagent and no need for washwater utilization give our product a significant cost advantage compared to current state-of-the-art solutions like SOX scrubbers, De-NOX and CSS.
7) Potential revenue stream – Potential added-value of the used dilution. Proved further processing potential for using the dilution in agriculture as a fertilizer or as a bio-friendly washing agent for cleaning large tanks and containers

MYC´s solution addresses many current EU-challenges and presents a state-of-the-art technology for achieving the desired emission control goals. When achieving all expected goals in DEFLUG project, MYC´s solution enables to achieve all current and future emission reduction goals. The novel system design and all-in-one environmentally friendly exhaust gases purification system enables to eliminate the main existing market barriers related to currently available alternatives, such as used dilution utilization, environmental hazards, high cost of the systems, integration problems and long return on investment periods. MYC´s unique solution is therefore the key enabling technology for significant leap in implementing European shipping emission regulations and tackle the shipping pollutants problem within EU waters and elsewhere.