Sources inform "Globes" that Israel Chemicals Ltd. (TASE: ICL) unit Dead Sea Bromine (Industrial Products Division), which is located in Ramat Hovav, is about to hire dozens of new employees as part of its expansion plan. NIS 100 million will be invested in developing a new bromine-based solution called "Markwell" that neutralizes mercury emissions from coal burned in power stations. The decision to expand the factory in southern Israel was made due to the forecast of increased demand for the new solution in US power stations, and preparations to provide a solution for future demand from other countries around the world, including China.
Strict environmental regulations, including demands to drastically reduce mercury emissions from coal-powered stations, are expected to take effect by the end of 2014. There are more than 500 such coal-powered stations in the US alone. The United Nations Environment Program (UNEP) claims that more than half of poisonous mercury emissions in the air come from coal-powered stations.
The Markwell solution comes in a liquid form that is sprayed on the coal to be burned in the power stations. Dead Sea Bromine marketing manager Ronit Shafrir, who is in charge of selling the new solution and developing a customer base in the US, says that the spraying prevents evaporation of the chemical through the chimneys and controls it. "When coal that is sprayed with the solution, is burned at 500 degrees Celsius, the poisonous Mercury turns into a heavy material that is easy to deal with - just like any other material - through the absorption or filter systems that already exist in the power station. In addition, the mercury is mostly not poisonous anymore in this form," Shafrir said.
Dead Sea Bromine has been supplying NIS 70 million worth of the Markwell solution annually to US power stations since 2010 through service companies. Dead Sea Bromine expects to double its revenue from Markwell sales since its use in US power stations is expected to grow following the implementation in 2014 of environmental regulations. Dead Sea Bromine expects demand from other countries, including China, to rise significantly in the next few years. "The fact that our factory is in southern Israel and from time to time is subject to difficult security situations, has raised questions among our customers in the US," Shafrir said. "Due to their need for Markwell to reduce emissions levels, power stations that consistently use Markwell are concerned about disruptions in supply and Dead Sea Bromine's inability to deliver the product on time. In order to ensure availability of the solution, we have decided to set up a logistics network with fixed stock amounts in a number of locations in the US so that even during times of tensions, supply will not be affected," Shafrir said.
While senior executives at Dead Sea Bromine and from Israel Chemicals are promoting Markwell as a "green" solution, Adam Teva V'DIn Israel Union for Environmental Defense notes that the factory in Ramat Hovav factory is one of the worst polluters and that it has surpassed acceptable levels by hundreds of percent. A number of lawsuits have been filed against Dead Sea Bromine over the last few years claiming that it is polluting the air with carcinogenic materials that are hazardous to the health of the area's residents.
Dead Sea Bromine had $1.3 billion in sales in 2010.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2011
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