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Beyond Board: How Nova Scotia can Add Value to its Gypsum Resources

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Presentation on theme: "Beyond Board: How Nova Scotia can Add Value to its Gypsum Resources"— Presentation transcript:

1 Beyond Board: How Nova Scotia can Add Value to its Gypsum Resources
Kent Ward – Gypsum Consulting Services Inc In cooperation with Innogyps Inc. Thank Dianne Webber Thank DNR ERDT

2 About GCSI and Myself Based in Halifax
Honors BSc in Applied Chemistry from Guelph 13 years in the gypsum Industry North America, Europe, Middle East & Asia Support for – business start-ups, operational improvement, product and process development, people development

3 About Innogyps & Bob Bruce
Based in Hamilton, ON PhD in Sulphur Chemistry 35 years in the gypsum industry world wide Global Leader in gypsum technology and business development

4 The problem! US housing crisis Increased use of synthetic gypsum
Reasons: US housing crisis Increased use of synthetic gypsum

5 The Effect! Gypsum production drop at an alarming rate
Operations reduce/suspend production Impact: Direct and indirect employment dropping Royalty / tax revenue dropping Future business development is being stifled Employment form > 500 to < 100 2 companies put quarries on care and maintenance

6 But….Gypsum is growing globally
Primarily in construction, but also agriculture and other areas Demographics Growing middle class Affordability Standard of housing Credit availability Global standards Renovation Why?

7 The opportunity! The gypsum industry is growing globally at a rate faster than population or GDP Growth is driven by market demand Growth is constrained by access to expertise, low cost energy and usable gypsum Nova Scotia is in a good position to lead this business development globally

8 The Action MRB initiates strategy session (Feb 2012)
Re-examine the future of gypsum industry in NS Participants are MRB, ERDT, NS Ag, Producers/Users, GCSI and Innogyps

9 The Outcome Conviction to develop a long-term, sustainable gypsum industry over 5 – 10 years Develop value-added gypsum businesses in NS capable to export products to the rest of the world Move from selling rocks to selling products/expertise

10 Potential Businesses Agricultural Soil Additives
Gypsum Based Absorbents (oil absorbents and pet litter) Architectural Products (floor screeds, plasters, decorative products) Ground Control Applications (slope stability, erosion control, subsidence prevention)

11 Applications of Gypsum in Agriculture
Research has demonstrated that gypsum has the potential to significantly improve crop yields and quality by addressing several issues that face the agriculture industry. Soil Acidity The high content of Ca2+ in gypsum buffers the pH of the soil Alkali Soil The high content of Ca2+ in gypsum can increase the cation exchange capacity, reducing high salt levels in the soil Alters soil chemistry Beneficial impact on soil structure and characteristics Improved drainage and water and air infiltration Provides Ca and S to plants Aids in the uptake of micronutrients Exchangeable Aluminum & Magnesium Toxicity Gypsum provides SO42- to neutralize Al3+ and Mg2+ (along with other toxic substances)

12 Applications of Gypsum in Agriculture
Soil Structure Reduced run-off and erosion by clay flocculation Infiltration & Saturation Facilitates active transport pathways Nutrient Availability Ca2+ and S are fundamental for positive crop growth

13 Effect on Soil Structure
Without Gypsum With Gypsum Loosens and opens up soil for better water and air penetration Improves plant emergence Reference - Norton, 2008

14 Remediation of Sodic Soils
Gypsum 26t/ac Calcium ions displace sodium ions that are detrimental to plant growth No Treatment Reference - Xu, 2006

15 Improved Yield (Tomato)
July 2005 August 2005 Gypsum Treatment T/acre 2 Yield lb/10 ft row 40 48 28 34 0.46 0.67 Skin Ca % 0.56 0.71 Improvement in yield has been demonstrated in many crops as a result of improved soil characteristics and better nutrient availability Reference - Summer & Larrimore, 2006

16 Cantaloupe stored for 4 weeks @ 40 ⁰F
Improved Shelf Life Cantaloupe stored for 4 40 ⁰F No Gypsum Gypsum 1100 lbs./ac Provides calcium which is important for cell wall development in skin and rinds Reference - Summer & Larrimore, 2006

17 Potential Market USGS Data ACAA for FGD
Estimates are low. Reporting is not Mandatory Ag Gyp Producers

18 Competition Nova Scotia is lowest cost natural product!
Closest competing locations are: West of Mississippi in USA Southern Ontario in Canada Spain, Morocco FGD Gypsum – Hazardous ??? – EPA Phosphogypsum – radioactive Nova Scotia is lowest cost natural product! Natural product is desirable EPA yet to rule on classification of FGD as a hazardous waste Access to year round deep water ports makes NS gypsum the lowest cost natural product available to US eastern seaboard

19 Gypsum Calcining The price of conventional gypsum can range from $5-10/ton Gypsum calcining can significantly raise the value of gypsum products. Most value added is through calcination into stucco/plaster Allows us to easily change the form and transform gypsum into many useful products

20 Absorbents High value-added products Natural
Calcined gypsum is naturally absorbent and clumps Can engineer to maximize absorbency Can control density (light weight products) Can modify surface for specific applications (carriers) Use alone or blend with existing products One range of products are absorbents Give out sample bottles

21 Absorbents Oil absorbents Pet litter/animal bedding products
Carriers and delivery vehicles for other chemicals (pesticides, animal feed additives)

22 One example – revenues of $260 million on 850,000 tons of clay
Employees - 856

23 Architectural Applications
Gypsum plasters, gypsum cements, decorative stone High value-added products Natural Fire resistant Breathable and regulate humidity in interior applications Can formulate to impart desirable properties Moldable (can produce intricate designs) Use the ability to change the form of gypsum

24 Floor Screed (Gypsum Cement)
25% to 40% lighter than concrete based products Better fire resistance Nuetral pH Quick cure (can build the next day) Can incorporate NS aggregate Used more in Europe (currently) >1,000,000 tons in Germany & Austria Currently use expensive to produce alpha plaster because of low water demand and high strength Patented technology has been developed in Canada that allows production of low water demand high strength products to be produced from inexpensive beta plasters Take advantage of this technology to produce products that can be exported to the rest of the world (Gypsum and aggregate)

25 Decorative Applications
Decorative Stone Plaster Castings Alabaster can be quite beautiful when polished and articles made from it can bring thousands of dollars from the right buyer Low volume – extremely high margins Special plasters can be used to mould many useful and decorative items Very intricate designs

26 Ground Control Applications
Erosion control/slope stabilty Ease of application Sets to form crust/stays where you put it/steep slopes Can blend in seed/nutrients/absorbents Improves drainage of soil Subsidence prevention (fill underground voids) Pumpable Control set time to ensure even distribution in void

27 Ground Control Applications
Hydroseeding Subsidence

28 The Nova Scotia Advantage
What advantages does NS have?

29 Extensive High Quality Gypsum Reserves
High quality deposits close to deep water ports Estimates are 450,000,000 Tonnes

30 Low Cost Energy Off shore gas – 1/3 the price of that in Europe
Heritage gas $3.53/GJ

31 Educated, Talented Workforce
Nova Scotia has well educated skilled work force and world class educational institutions . Provide opportunities for them here so they don’t have to go elsewhere to find employment to take advantage of their skills and training

32 Transportation Access to year round deep water ports
Easy access to Eastern Canada and US by rail and truck International airport with routes to major hubs in the US and Europe

33 Government & Industry Partners
Government and industry that can work together to achieve common goals Grow the Economy of NS Jobs Here

34 Benefits to Nova Scotia
Potential Opportunity Agricultural Gypsum Absorbents Architectural Applications Ground Control Markets Local/US East Global Volume (t/yr.) 1,000,000 200,000 500,000 700,000 Gypsum Value (Million $/yr.) 20 50 35 GDP Value (Million $/yr.) 80 75 95 Jobs 500 630 These numbers represent GDP and employment estimates based on full development of the opportunities $330 million in GDP and 2200 Jobs 5 to 10 years out. Significant progress could be made in the next 2 to 3 years Note: 75K/yr. Jobs based on 50% labour content of GDP value

35 Jobs are: Estimate of 3 indirect jobs for every direct job Mining
Mineral processing, manufacturing, Quality, Development Trucking Packaging, Design Marketing, Advertising, Selling, Field Support Export, Dock workers, Marine shipping Maintenance, Personnel, Finance, Legal Multiplier effect jobs in NS economy Estimate of 3 indirect jobs for every direct job

36 Path Forward Develop Agricultural Gypsum and Absorbents Businesses
3 Stage proposal to government to take these forward.

37 Stage I – Market Study $100K to develop detailed 5 year business plans
Stakeholder participation Existing producers Existing businesses Industry associations Research institutions 4 month timeframe Engage stakeholders to determine interest and future participation

38 Stage II - Demonstration
Business Financed (express interest) Demonstration and test market development Set up operating businesses Led by industry Technical, operational and market support as required Timeframe – 14 months from implementation

39 Stage III - Gypsum Centre of Excellence
Support & promote gypsum use worldwide. Develop new applications. Develop intellectual and human capacity in NS to support and expand the gypsum industry. Make NS the leader in gypsum technology and expertise. Leverage the resources of industry, government and academia to further the use of gypsum on a global basis Act as engine for the development of technology, market info and human resource development

40 Future (6 Months) Market studies and business plans complete
Clear picture of investment required to move forward Interested business partners Initial steps to establish The Gypsum Centre of Excellence

41 Nova Scotia Thank You for your attention Why Not Here!

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