Painting & Coating Industry (PCI) logo Powder coating summit logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • MATERIALS
  • TECHNOLOGIES
  • RESOURCES
  • EVENTS
  • DIRECTORIES
  • EMAGAZINE
  • CONTACT
  • SIGN UP!
cart
facebook twitter linkedin youtube
  • NEWS
  • Latest News
  • Market Trends & Reports
  • Finishing News
  • Price Alerts
  • Subscribe to eNewsletters
  • Global Top 10/ PCI 25
  • Weekly Featured Article
  • COATLE Word Game
  • PRODUCTS
  • Product News
  • Must See Products and Services
  • MATERIALS
  • Additives
  • Resins/Polymers
  • Pigments
  • Equipment
  • Distributors
  • TECHNOLOGIES
  • Adhesives
  • Architectural Coatings
  • Finishing Articles
  • Finishing Technologies
  • Finishing Equipment
  • Industrial Coatings
  • Nanotechnology
  • Powder Coatings
  • Solventborne
  • Special Purpose Coatings
  • Sustainability
  • UV Coatings
  • Waterborne
  • RESOURCES
  • Columns
  • Blogs
  • Coatings Supplier Handbook
  • Podcasts and Videos
  • PCI Store
  • Classifieds
  • eBooks
  • Sponsor Insights
  • White Papers
  • COATLE Word Game
  • Columns
  • Did you know?
  • Distribution Dive
  • Formulating With Mike
  • Innovation Insights
  • Powder Coating Perspectives
  • TiO2 Insider
  • Blogs
  • Editor's Viewpoint
  • Industry Insights
  • Podcasts and Videos
  • COAT-IT! Podcast
  • Videos/PCI TV
  • EVENTS
  • Coatings Trends & Technologies Summit
  • Paint and Coatings Academy
  • Webinars
  • Calendar of Events
  • Lifetime Achievement Award
  • DIRECTORIES
  • Buyer's Guide
  • Equipment Directory
  • Materials Directory
  • EMAGAZINE
  • Current Issue
  • eMagazine Archive
  • China Issue Archive
  • Editorial Advisory Board
  • CONTACT
  • Contact Us
  • Advertise
  • Subscribe to eMagazine
  • Subscribe to eNewsletters
Painting & Coating Industry (PCI) logo Powder coating summit logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Painting & Coating Industry (PCI) logo Powder coating summit logo
  • NEWS
    • Latest News
    • Market Trends & Reports
    • Finishing News
    • Price Alerts
    • Subscribe to eNewsletters
    • Global Top 10/ PCI 25
    • Weekly Featured Article
    • COATLE Word Game
  • PRODUCTS
    • Product News
    • Must See Products and Services
  • MATERIALS
    • Additives
    • Resins/Polymers
    • Pigments
    • Equipment
    • Distributors
  • TECHNOLOGIES
    • Adhesives
    • Architectural Coatings
    • Finishing Articles
    • Finishing Technologies
    • Finishing Equipment
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • Sustainability
    • UV Coatings
    • Waterborne
  • RESOURCES
    • Columns
      • Did you know?
      • Distribution Dive
      • Formulating With Mike
      • Innovation Insights
      • Powder Coating Perspectives
      • TiO2 Insider
    • Blogs
      • Editor's Viewpoint
      • Industry Insights
    • Coatings Supplier Handbook
    • Podcasts and Videos
      • COAT-IT! Podcast
      • Videos/PCI TV
    • PCI Store
    • Classifieds
    • eBooks
    • Sponsor Insights
    • White Papers
    • COATLE Word Game
  • EVENTS
    • Coatings Trends & Technologies Summit
    • Paint and Coatings Academy
    • Webinars
    • Calendar of Events
    • Lifetime Achievement Award
  • DIRECTORIES
    • Buyer's Guide
    • Equipment Directory
    • Materials Directory
  • EMAGAZINE
    • Current Issue
    • eMagazine Archive
    • China Issue Archive
    • Editorial Advisory Board
  • CONTACT
    • Contact Us
    • Advertise
    • Subscribe to eMagazine
    • Subscribe to eNewsletters
  • SIGN UP!

WEB EXCLUSIVE!!
Performance Contracts Reduce Abatement Costs For Paint and Coatings

July 1, 2004
Attention is typically given to regenerative thermal oxidizer (RTO) performance by paint and coatings manufacturers only when a specific problem or fault shuts down the system or when the system is out of compliance. Opportunities to reduce the operating cost of an RTO by improving the energy efficiency are often ignored. Because of the rapidly increasing cost of natural gas, the incentive to evaluate and improve RTO efficiency before any maintenance problems occur has never been greater. If the temperature rise across an RTO is about 140 ºF or greater, energy-recovery projects can usually be justified based on the utility savings alone. (Whether an energy efficiency project can pay for itself is a function of temperature rise and pressure drop across an RTO, the air volume being treated, and the annual hours of RTO operation. Other factors may also have an impact.)

One major concern with any energy-saving project is one of predicted savings vs. actual results. How can a plant be sure that the savings estimated during the project-approval stage are in fact realized after the project is completed? Are the predicted savings based on realistic assumptions? And more importantly, will the system continue to be operated at both startup as well as in the foreseeable future in such a way that the savings are truly maximized?

A performance contract is a tool that can be used to resolve these concerns and guarantee a reduction in RTO operating costs, with no capital investment required.

Natural gas and electricity meters are installed to measure actual utility consumption in an RTO (called "the baseline consumption"). During plant downtime, some type of energy efficiency improvement is made to the RTO. Possible improvements may be the addition of catalyst, installation of natural gas injection or a more efficient ceramic packing. The plant pays nothing for the improvements. After the unit is restarted, the utility meters continue to measure the utility consumption. Once a month, the meter readings are used to determine the actual savings realized: the baseline consumption (i.e., what would have been consumed if no improvements had been made) less the actual consumption.

Under some contracts, the plant keeps the first portion of the savings, up to a "guaranteed savings" value. Savings above the "guaranteed savings" are paid to the contractor who installed the project, up to a predetermined "savings target". Additional savings beyond the savings target are split between the plant and the contractor, often 50/50. When the contract expires, typically after four to eight years, the plant keeps all the improvements as well as all the savings.

Performance contracts feature strong advantages over simply purchasing and installing energy-efficient projects. Most importantly, performance contracts make the contractor, not the plant, responsible for making the predicted savings a reality. Any shortfall in savings impacts the contractor only. The plant no longer has to evaluate how reasonable the assumptions or calculations are. That task is left to the contractor, who is more likely the RTO expert.

The shared savings feature means it is in the contractor's best interest to periodically fine-tune the system to minimize operating costs. The plant is assured of an efficient unit throughout the life of the contract. In most cases, the actual savings exceed the predetermined target savings, meaning the plant realizes savings greater than the guaranteed minimum, which lowers its costs even further.

Because the contractor is optimizing the system both at startup and throughout the life of the contract, the contractor is not simply taking a portion of the savings, he is actually increasing the amount of the savings.

An additional benefit of performance contracting is the "side repairs". When the system modifications are being installed, it is relatively inexpensive to make other necessary repairs on items such as insulation and burners. System improvements such as value or control upgrades can also be funded by the savings guaranteed to the plant.

The most beneficial performance contracts are structured so it is in the best interest of both the plant and the contractor to do everything possible to maintain system performance at maximum efficiency. A well-structured performance contract places the plant and the contractor on the same side of the business equation.

Steve Blocki recently established Durr Environmental's energy management and abatement outsourcing program. Through the TOTAL Solution Outsourcing Program, he is responsible for the energy management and maintenance of many abatement systems in operation throughout the country. For more information, contact him at Durr Environmental, Inc., 40600 Plymouth Rd., Plymouth, MI 48170; phone 734/459.6800; e-mail sblocki@durrusa.com.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • pci1022-Kinaltek-Lead-1170.jpg

    A Novel Pigment Production Technology

    Following an extensive R&D program that demonstrated...
    Paint and Coating Pigments
    By: Jawad Haidar and Nitin Soni
  • pci global top 10

    2025 Global Top 10: Top Paint and Coatings Companies

    The following is PCI’s annual ranking of the top 10...
    Global Top 10 and PCI 25
    By: Courtney Bassett
  • 2025 pci 25

    2025 PCI 25: Top Paint and Coatings Companies

    PCI's annual ranking of the top 25 North American paint...
    Paint and Coating Market Reports
    By: Courtney Bassett
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eMagazine
  • eNewsletter
  • Online Registration
  • Subscription Customer Service

The Coatings Minute: See Who’s Leading the Coatings Industry in 2025

The Coatings Minute: See Who’s Leading the Coatings Industry in 2025

The Coatings Minute: Your Guide to the 2025 Coatings Supplier Handbook

The Coatings Minute: Your Guide to the 2025 Coatings Supplier Handbook

The Coatings Minute: CTT 2025  -  One Summit, Three Audiences, Real Impact

The Coatings Minute: CTT 2025 - One Summit, Three Audiences, Real Impact

The Coatings Minute: Strategy, Innovation and Leadership in PCI’s July eBook

The Coatings Minute: Strategy, Innovation and Leadership in PCI’s July eBook

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the PCI audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of PCI or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • colorful building exterior
    Sponsored byDow

    Insights into Exterior Architectural Coating Degradation: Bridging Accelerated and Natural Weathering

  • digital pigments
    Sponsored bySiltech

    The Fourth Dimension of Silicon: Siltech Q Resins

  • Modern arapartment complex painted in bright colors.
    Sponsored byEPS - Engineered Polymer Solutions

    Architectural Polymers Leading the Way in Coatings Innovation

Popular Stories

BreakingNews-109160584.jpg

BASF Sells Coatings Business

BASF SE Logo

BASF Nears Decision on Coatings Business Divestiture

colorful building exterior

Insights into Exterior Architectural Coating Degradation: Bridging Accelerated and Natural Weathering



PCI Buyers Guide

Submit a Request for Proposal (RFP) to suppliers of your choice with details on what you need with a click of a button

Start your RFP

Browse our Buyers Guide for manufacturers and distributors of all types of coatings products and much more!

Find Suppliers

Events

September 4, 2025

N-Butylpyrrolidone (NBP) as a Green Solvent to Replace N-Methylpyrrolidone (NMP) in Industrial Coating Applications

ON DEMAND: EPA published a regulation proposal around N-methylpyrrolidone (NMP) in June 2024 to ban or limit NMP in many applications, such as paints and coatings and their removers. N-butylpyrrolidone (NBP) is a powerful and versatile solvent for a variety of industries looking for alternatives to substance of very high concern (SVHC)-listed solvents.

October 30, 2025

Novel Spherical Calcium Silicate Anti-Corrosion Pigment for Protective Coatings

This presentation introduces a novel spherical calcium silicate as an effective anti-corrosion pigment for protective coatings. The modified spherical silica was synthesized using a unique patented manufacturing process, allowing to produce AC pigments with increased effectiveness for passivation, as well as easier and more even dispersion.

View All Submit An Event

Poll

Longest-running laboratory experiment

What is the longest-running laboratory experiment?
View Results Poll Archive

Products

Automotive Paints and Coatings, 2nd Edition

Automotive Paints and Coatings, 2nd Edition

Now in its second edition and still the only book of its kind, this is an authoritative treatment of all stages of the coating process.

See More Products
pci voices from the top ebook

PCI webinar

Related Articles

  • Reducing Abatement Costs Using Performance Contracts

    See More
  • In Focus: Performance Contracts Cut Abatement Costs

    See More
  • A New Concept for Powder Coatings to Reduce Manufacturing Costs and Increase Throughput

    See More

Related Products

See More Products
  • intelligent.jpg

    Intelligent Coatings for Corrosion Control 1st Edition

  • Kevin-Biller-PC-BOOK.jpg

    Powder Coatings - Foundation for the Novice Formulator (ebook)

See More Products

Related Directories

  • Innospec Performance Chemicals

    Innospec is a global supplier of specialty chemicals for many different markets, including construction, emulsion polymerization, paint and coatings, polymers and waxes. Our innovative and responsible solutions cover a strong portfolio of additives and technically advanced solutions: rheology modifiers, anionic emulsifiers, wetting agents and dispersants.
×

Keep the info flowing with our eNewsletters!

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey & Sample
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Youtube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

Painting & Coating Industry (PCI) logo Powder coating summit logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Painting & Coating Industry (PCI) logo Powder coating summit logo
  • NEWS
    • Latest News
    • Market Trends & Reports
    • Finishing News
    • Price Alerts
    • Subscribe to eNewsletters
    • Global Top 10/ PCI 25
    • Weekly Featured Article
    • COATLE Word Game
  • PRODUCTS
    • Product News
    • Must See Products and Services
  • MATERIALS
    • Additives
    • Resins/Polymers
    • Pigments
    • Equipment
    • Distributors
  • TECHNOLOGIES
    • Adhesives
    • Architectural Coatings
    • Finishing Articles
    • Finishing Technologies
    • Finishing Equipment
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • Sustainability
    • UV Coatings
    • Waterborne
  • RESOURCES
    • Columns
      • Did you know?
      • Distribution Dive
      • Formulating With Mike
      • Innovation Insights
      • Powder Coating Perspectives
      • TiO2 Insider
    • Blogs
      • Editor's Viewpoint
      • Industry Insights
    • Coatings Supplier Handbook
    • Podcasts and Videos
      • COAT-IT! Podcast
      • Videos/PCI TV
    • PCI Store
    • Classifieds
    • eBooks
    • Sponsor Insights
    • White Papers
    • COATLE Word Game
  • EVENTS
    • Coatings Trends & Technologies Summit
    • Paint and Coatings Academy
    • Webinars
    • Calendar of Events
    • Lifetime Achievement Award
  • DIRECTORIES
    • Buyer's Guide
    • Equipment Directory
    • Materials Directory
  • EMAGAZINE
    • Current Issue
    • eMagazine Archive
    • China Issue Archive
    • Editorial Advisory Board
  • CONTACT
    • Contact Us
    • Advertise
    • Subscribe to eMagazine
    • Subscribe to eNewsletters
  • SIGN UP!