Cabot Corporation (CBT) and Westmoreland Coal Company (WLB) announced today that they plan to increase activated carbon manufacturing capacity in North America. The joint venture partners plan to double the capacity of their Bienfait, Saskatchewan manufacturing facility to meet the future demand for mercury removal products for use in the coal-fired utility market.
The jointly owned facility will produce an additional 35 million pounds of powdered activated carbon. The Bienfait plant will continue to be served from a co-located mine that is operated by Westmoreland. The additional capacity will be commissioned in 2016.
The expansion will produce Cabot’s benchmark DARCO® Hg family of mercury removal products. Cabot will be responsible for the marketing of these products as well as the technology package, while Westmoreland continues to be the operator of the plant.
“The implementation of new mercury control technology throughout the North American coal-fired power generating fleet, driven by the U.S. Environmental Protection Agency (EPA) Mercury and Air Toxics Standard (MATS), will be a major driver of growth in the activated carbon market,” said Friedrich von Gottberg, senior vice president and president Cabot Purification Solutions. “We anticipate significant demand increases over the next three years as U.S. coal-fired utilities comply with the MATS regulation. Once commissioned, our new capacity will help us expand our market leadership and continue to be a long-term, reliable source of high quality products for our customers in North America.”
“We are pleased with the expansion and deepening of our relationship with Cabot. Our activities in the activated carbon industry enable us to increase our presence in the industrial environmental market,” said Keith Alessi, Chief Executive Officer, Westmoreland.