The Rotary Club welcomed Peter Donnelly to our meeting today. Peter is the President of Cancarb, a producer of thermal carbon black located in Medicine Hat. They were established in Medicine Hat in 1973, and will celebrate their 50th anniversary in 2023. Their parent company is the 4th largest carbon black producer in the world, Tokai Carbon Group. Previously they were owned by Trans Canada Pipeline Ltd for over 20 years. Cancarb currently have 82 Full Time employee's in their office in Brier Park, as well as support a wide range of contractors, consultants and suppliers in the area. Carbon Black is used as a strengthening agent in rubber, and at least 75% of their product finds its way into the automotive business in some way.
Carbon Black is manufactured by a thermal decomposition process, in which methane is converted to pure carbon and hydrogen. At the local Cancarb plant, the methane feedstock is natural gas. The manufacturing process creates a lot of waste heat, and in 2001 an electric generating plant, designed to use the waste heat as steam to produce power was commissioned. When the carbon black plant is operating smoothly, they produce approx 25 MW of power, which is sold to the City of Medicine Hat on a long term power purchase agreement. A great arrangement for all concerned.
The carbon black from the local plant is shipped around the world, in fact 94% of it is exported. Peter made several comments about the current difficulties in the supply chain system and difficulties in transportation. Peter spoke about the recent commissioning of Train 6, which was completed in 2021 at a cost of $35M. It was the first major expansion of the processing plant in quite a while, and a great sign of success and a prosperous future.
He also spoke about their passion, which was to have a "Perfect Day". It combines their cultural, operational, safety and customer activities into a simple slogan for staff.
A great presentation, a number of good questions asked and answered. We all wished Peter and his staff a lot of "Perfect Days" in the future.