EcoVapor Recovery Systems - A DNOW Company

Background

Overview

EcoVapor Recovery Systems, established in 2010 and headquartered in Denver, Colorado, specializes in providing innovative solutions for vapor recovery and emission reduction in the oil and gas industry. The company's mission is to enhance environmental sustainability by converting waste gas streams into valuable resources, thereby reducing emissions and flaring. In February 2023, EcoVapor was acquired by DistributionNOW (DNOW), a global supplier of energy and industrial products, integrating EcoVapor's technologies into DNOW's extensive product suite.

Mission and Vision

EcoVapor's mission is to provide reliable and economic control of vapor emissions at oil and gas production sites, aiming to eliminate routine flaring and venting. The vision is to lead in emission reduction technologies, offering solutions that not only meet environmental compliance but also enhance operational profitability.

Primary Area of Focus

The company focuses on vapor recovery and emission management solutions, particularly targeting the oil and gas and renewable natural gas (RNG) markets. Their flagship product, the ZerO2™ system, is designed to capture and purify gas streams, converting them into pipeline-ready gas and reducing environmental impact.

Industry Significance

EcoVapor plays a crucial role in the energy sector by addressing the challenges of gas flaring and venting, which contribute to greenhouse gas emissions. Their technologies support the industry's transition towards more sustainable practices, aligning with global efforts to reduce carbon footprints and promote cleaner energy solutions.

Key Strategic Focus

Core Objectives

Emission Reduction: Implement technologies that minimize flaring and venting, thereby reducing greenhouse gas emissions.

Profitability Enhancement: Convert waste gas streams into revenue-generating resources, improving operational profitability.

Sustainability Leadership: Position as a leader in providing sustainable solutions within the oil and gas and RNG sectors.

Specific Areas of Specialization

Vapor Recovery Systems: Design and deploy systems that capture and process gas emissions from production sites.

Gas Purification: Utilize technologies to remove contaminants, such as oxygen and hydrogen sulfide, from gas streams.

Emission Management: Offer solutions for monitoring and controlling emissions to ensure regulatory compliance.

Key Technologies Utilized

ZerO2™ System: A patented technology that removes oxygen from biogas, landfill gas, and tank vapors, enabling gas to meet pipeline specifications and be sold instead of flared.

Sulfur Sentinel™: A product designed for the removal of hydrogen sulfide from gas streams, enhancing gas quality and safety.

EcoForce™ Vapor Recovery System: A solution that captures BTU-rich flash gas from surge vessels, directing it to the sales line for maximum value.

Primary Markets Targeted

Oil and Gas Industry: Providing emission reduction solutions for upstream and midstream operations.

Renewable Natural Gas (RNG) Sector: Offering gas purification technologies for biogas upgrading.

Financials and Funding

Funding History

Initial Funding: EcoVapor was founded in 2010, with initial funding from private investors.

Growth Capital: In 2017, the company received growth capital from EIV Capital, a private equity firm specializing in the energy sector.

Acquisition by DNOW: In February 2023, EcoVapor was acquired by DistributionNOW (DNOW), a publicly traded company on the NYSE.

Total Funds Raised

Specific details regarding the total funds raised by EcoVapor prior to its acquisition are not publicly disclosed.

Utilization of Capital

The capital raised has been utilized for research and development of emission reduction technologies, expansion of product offerings, and scaling operations to meet the growing demand in the oil and gas and RNG markets.

Pipeline Development

Key Pipeline Candidates

ZerO2™ System: A flagship product that has been deployed in over 120 installations across major U.S. basins, capturing 100% of valuable vapor and converting it into pipeline-ready gas.

EcoForce™ Vapor Recovery System: Designed to recover flash gas from surge vessels, enhancing facility profitability and efficiency.

Stages of Development

ZerO2™ System: Commercially deployed with proven effectiveness in reducing emissions and generating revenue from recovered gas.

EcoForce™ Vapor Recovery System: Available for deployment, offering a solution for tankless production facilities to recover valuable gas.

Target Conditions

Oil and Gas Production Sites: Addressing emissions from storage tanks and surge vessels.

Renewable Natural Gas Facilities: Purifying biogas to meet pipeline specifications.

Anticipated Milestones

Product Expansion: Introduction of new units, such as the E750 ZerO2™, capable of reducing up to 40,000 metric tons of CO₂ equivalent emissions annually.

Market Penetration: Expansion into international markets and increased adoption in the RNG sector.

Technological Platform and Innovation

Proprietary Technologies

ZerO2™ System: A patented technology that removes oxygen from gas streams, enabling them to meet pipeline specifications and be sold instead of flared.

Sulfur Sentinel™: A product designed for the removal of hydrogen sulfide from gas streams, enhancing gas quality and safety.

Significant Scientific Methods

Catalytic Deoxygenation: Utilizing catalytic processes to remove oxygen from gas streams, improving gas quality and reducing emissions.

Gas Purification: Employing advanced filtration and chemical processes to remove contaminants from gas streams.

AI-Driven Capabilities

Predictive Maintenance: Implementing AI algorithms to predict equipment maintenance needs, reducing downtime and operational costs.

Leadership Team

Executive Profiles

Jason Roe: Chief Executive Officer and President of EcoVapor since May 2021. Previously served as CEO of Avitas, a Baker Hughes venture focused on emissions monitoring and detection.

Key Contributions

Leadership in Emission Reduction: Guided EcoVapor in developing and deploying technologies that significantly reduce emissions and flaring in the oil and gas industry.

Strategic Expansion: Led the acquisition by DNOW, facilitating the integration of EcoVapor's technologies into a broader product suite.

Competitor Profile

Market Insights and Dynamics

The vapor recovery and emission management market is experiencing growth due to increasing environmental regulations and the need for sustainable practices in the oil and gas industry. North America, particularly the United States, holds a significant share of the market, driven by technological advancements and regulatory compliance requirements.

Competitor Analysis

AEREON: Offers vapor recovery and emission management solutions, focusing on reducing emissions and flaring.

Hy-Bon/EDI: Provides vapor recovery units and services, emphasizing efficiency and regulatory compliance.

John Zink Company: Specializes in combustion and environmental technologies, including vapor recovery systems.

Strategic Collaborations and Partnerships

University of North Dakota’s Energy & Environmental Research Center: Partnered to advance research in emission reduction technologies.

Operational Insights

EcoVapor differentiates itself through its patented ZerO2™ technology, offering a unique solution for converting waste gas streams into valuable resources. The company's integration with DNOW provides enhanced fabrication, logistics, and distribution capabilities, strengthening its market position.

Strategic Opportunities and Future Directions