Reminder: Tax Relief Act

This tax relief provision expires on 12/31/2011 so take action right away, before the rush.

House Bill H.R. 4853 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) was signed into law on December 17, 2010. The Tax Relief Act increases bonus depreciation from 50 percent to 100 percent for property acquired after September 8, 2010 and before January 1, 2012, and put in service before January 1, 2012. Generally, this is available for property eligible for MACRS with a depreciation period of 20 years or less, or off-the-shelf computer software. There is no limit to the total amount of bonus depreciation that a taxpayer may claim in a particular year. Taxpayers wanting to use bonus depreciation should consider accelerating their purchases into 2011 when the bonus depreciation is 100 percent.

Even though almost all automation machinery, equipment, and computer hardware and software are included in this provision, companies should contact their tax professionals to identify if and how these benefits apply to them.

Thanks to Rebecca Burgess at Schneider Electric for sharing this reminder with us. For more information on plant automation, process automation, industrial IT, or other automation and control services, see our web site.

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Professional Service Contract With City of Auburn

Late last month, the City of Auburn issued a resolution authorizing a SCADA professional service agreement with Revere Control Systems for ongoing support, including emergency callout services, on control system equipment at the H.C. Morgan Water Pollution Control Facility, as well as for other instrumentation and equipment needed within the wastewater treatment and collection system on an as-needed basis. Revere provided the new SCADA system at the plant, and the City desired to continue utilizing Revere’s services for ongoing work. This is an extraordinary action for a municipality to take for control system services and a testament to Revere’s performance on the City’s SCADA system project.

Learn more about our SCADA capabilities at our Web site.

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Automation Alliance Goes to Russia

 

Insist Avtomatica booth at MIOGE

Personnel from Insist Avtomatica manning their booth at MIOGE along with Dan Amsden (second from right), president of AAG.

Dan Amsden, president of Automation Alliance Group (AAG), of which Revere is a founding partner, recently attended the Moscow International Oil & Gas Exhibition (MIOGE) held in Omsk, Russia, June 20–24. Dan attended at the invitation of Russian AAG partner Insist Avtomatica (whose personnel are pictured in the booth with Dan), which has as customers many Russian oil and gas companies. Insist Avtomatica is an avid advocate of AAG and its resource sharing capabilities, and they invited AAG to have a presence with them at this show to explain in detail how such resource sharing works and how it benefits customers. Insist Avtomatica plans to use other AAG partners to support joint ventures between their Russian customers and other companies doing business in diverse parts of the world.

MIOGE show floor

Attendance was strong at the MIOGE, and most major automation & control vendors were present as exhibitors.

 

MIOGE booth traffic

AAG president Dan Amsden discusses system integration services with visitors to the Insist Avtomatica booth.

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Stone Technologies Joins Forces With EISgroup

Fellow Automation Alliance Group (AAG) partner, Stone Technologies, has merged with EISgroup, an Indianapolis-based engineering and information solution provider. The resulting oganization will continue to be called Stone Technologies, Inc. and will remain headquartered in St. Louis, MO. It will also be a 50-person firm with a presence in 11 states and Canada. The merger capitalizes on their synergy in controls and MES/MOM expertise and will provide existing clients with expanded resources in project management and manufacturing intelligence.

AAG is a worldwide alliance of CSIA-Certified control system integrators dedicated to leveraging shared resources and knowledge for the benefit of their clients. AAG has members on six continents and with combined expertise in virtually every aspect of control system integration for nearly every industry.

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Process Automation Market Recovery

Last week’s post highlighted the key trends forecast for automation and controls for 2011. As a follow-up to that post, we want to share with you a very positive forecast for recovery in the process automation market for 2011. As detailed in Control Magazine, the ARC Advisory Group is projecting steady growth of 6%, and the Puchasing Managers Index (PMI) has moved up to 57.8, a positive indicator. Read the full article.

Also take note of the interface used by Control Magazine. This is probably one of the coolest on-line magazine interfaces we’ve seen, with multiple options for page turning, including the very natural “grab-and-flip” mode, plus zoom and scroll functions.

Process automation is one of the key expertises that we offer. And we have experience with it across a broad range of industries.

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Automation & Control Trends for 2011

Earlier this year, automation.com’s Bill Lydon wrote an excellent article on Major Automation & Control Trends for 2011. In it, he highlighted several areas that Revere is involved in, as follows:

  • Information Security: Our industrial IT capabilities and IT services are heavily focused on security for plant networks, as well as optimizing performance.
  • Energy: We have already helped several clients make significant reductions in energy usage and costs by implementing energy monitoring and management systems.
  • Wireless: Extensive experience in wireless systems for large and small applications.
  • Virtualization: Offering comprehensive industrial IT services, including server virtualization.
  • Retrofit & Upgrade: We provide a full range of solutions for legacy control systems.
  • Enterprise Automation: Our direct experience, coupled with that of our Automation Alliance Group partners, allows us to help manufacturers address all levels of enterprise automation.
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National Alabama Corp. Promotes Manufacturing Capacity

National Alabama Corp. Video

Revere customer National Alabama Corp. produced this stimulating video promoting significant high-tech manufacturing capacity/capabilities at its northern Alabama LEED-certified facility.

In addition to the high-capacity cranes described in the video, the plant, which was designed to produce rail cars, has an extensive rabbit conveyor system, for which we provided all the controls. A rabbit conveyor is a type of conveyor designed to move very heavy objects without the use of cable winches. We have broad experience with many types of conveyor systems.

Rabbit Conveyor Control Panels

Typical control panels for the plant's rabbit conveyor system.

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Revere a Member of Corning Network of Preferred Installers

Corning NPI LogoRevere has completed the process required to be named a member of Corning’s Network of Preferred Installers (NPI) of fiber optic systems at the Authorized level. Among the requirements for the certification process, which is for the company and not individuals, were training classes and on-site inspections. We are currently one of only two control system integrators in the Southeast to qualify for this level of certification.

The certification means that we will be able to offer our customers a 25-year warranty on fiber optic installations. Fiber optic is becoming the preferred medium for control system networks for plant-wide systems. According to Corning’s description of their program, it is intended to provide assurances to end users that their contractors are qualified to provide reliable end-to-end cabling solutions, while also giving contractors a means to differentiate themselves from others in the field.

Revere will stay compliant by meeting annual training requirements and by maintaining a minimum level of product purchases.

NPIcertificaterenderpdf

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Water-Energy Co-dependence

 

It takes water, lots of it, to produce energy, regardless of the process. A thermoelectric plant consumes 400 gallons or more per megawatt; producing a gallon of oil or gas uses 1.5 gallons of water. Biofuels are even more demanding, requiring 4 gallons to process a gallon of fuel; oil shale needs 2 to 3 gallons of water per gallon of oil extracted; and concentrating solar power can use up to 900 gallons of water per megawatt. Thermoelectric cooling is responsible for 41 percent of the country’s freshwater withdrawal. And some power plant construction projects are being held up due to available water scarcity.

It also takes energy to move, handle, and process water. Pumping water from 120 feet requires 540 kilowatts per million gallons pumped, and the deeper you go to get water, the more energy is needed to bring it to the surface, rising to 2,000 kilowatts per million gallons at a depth of 400 feet. Water and wastewater treatment systems account for about 35 percent of the energy used by municipalities.

Yet wastewater, with the biosolids it contains, has energy potential tied up in it, up to 12 times the energy used to treat it. This country’s more than 16,000 publicly owned wastewater treatment facilities produce more than 64 pounds of biosolids per person, per year, resulting in 7.2 million metric tons of “dry solids” annually. Every gallon of wastewater contains the equivalent of $1.88 worth of fertilizer, methane energy, and beneficial organic matter for soils, in addition to clean water. In a single example, the City of Palo Alto treatment plant has a calculated potential to generate $16.5 million a year in energy and by-products from its 24 million gallons per day of wastewater processed.

An example of a project that will take advantage of this co-dependence is a project in Kemper County, Mississippi. The project involves an integrated gasification combined cycle power plant that will use reclaimed water from two Meridian, MS, publicly owned treatment works (POTWs). The contract for the reclaimed effluent with Mississippi Power will generate significant income for the City of Meridian and Lauderdale County.

This could show the way for a new generation of power plants. A DOE study estimates that 81 percent of power plants proposed for construction have within a 10-mile radius one or two wastewater treatment plants which could provide sufficient cooling water supply. The same study estimates that 97 percent of plants could meet their cooling water needs with one or two such treatment plants within a 25-mile radius. The potential for economic and energy synergy is huge.

WWEMA (Water & Wastewater Equipment Manufacturers Association) has created a position paper, “The Water/Energy Nexus,” that makes this co-dependence case in much greater detail and from which many of the statistics in this article were drawn. Revere Control Systems, an independent control systems integrator with 30 years of experience in the water and wastewater industry, is an active member of WWEMA and a participant in their Water/Energy Nexus committee. We are actively seeking opportunities to apply our energy management technologies to water/wastewater projects and in the process to bring together technologies that will allow greater confluence of water and energy to the benefit of treatment plant operators, energy producers, municipal economies, and the environment.

Find out more about our energy management offering at our web site.

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Get 100% Return on Investments in Automation Systems

This tax relief provision expires on 12/31/2011 so take action right away, before the rush.

House Bill H.R. 4853 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) was signed into law on December 17, 2010. The Tax Relief Act increases bonus depreciation from 50 percent to 100 percent for property acquired after September 8, 2010 and before January 1, 2012, and put in service before January 1, 2012. Generally, this is available for property eligible for MACRS with a depreciation period of 20 years or less or off-the-shelf computer software. There is no limit to the total amount of bonus depreciation that a taxpayer may claim in a particular year. Taxpayers wanting to use bonus depreciation should consider accelerating their purchases into 2011 when the bonus depreciation is 100 perecent.

Even though almost all automation machinery, equipment, and computer hardware and software are included in this provision, companies should contact their tax professionals to identify if and how these benefits apply to them.

Thanks to Rebecca Burgess at Schneider Electric for sharing this reminder with us. For more information on plant automation, process automation, industrial IT, or other automation and control services, see our web site.

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