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Gasification Gets a Big Customer

Recently I wrote about the large number of garbage trains traveling in and out of the Greater Metropolitan New York area every day. The derailment of 10 garbage cars on one of those trains was the reason that two tracks had to be replaced, stopping train service on the line—my line—for several days.

A letter to the editor of our local newspaper pointed out that the CSX garbage train makes the trip four times daily to and from the Bronx and ultimately to landfills in Virginia.

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That’s a whole lot of garbage going into landfills.

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Research found that while strides have been made with a process called “gasification”—which uses a chemical reaction to convert just about any garbage into gas products such as hydrogen and carbon monoxide—it has not been found to be economically feasible to be used on a widespread basis.

But there could be a future for gasification, according to an article in The New York Times, Aug. 17.

The article stated that a company called Sierra Energy has been testing a waste-to-energy system for several years that converts trash—any trash, from food waste to syringes and electronics—to a product known as “syngas,” short for synthetic gas. This gas can be used as fuel to generate electricity or made into diesel fuel or ethanol.

This could be of value, especially since there has been controversy about using corn and other food crops for fuel.

The article states that while it may be a while before the process will be used at the consumer level, the U.S. Army is interested enough to sign up as the company’s first customer.

The military is looking for ways to reduce its oil consumption, and to make it easier to supply the front lines with fuel used in its vehicles and generators.

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“These days, the supply lines are in the battlefield,” Sharon E. Burke, assistant secretary of defense for operational efficiency plans and programs told The Times. “And we consume a lot of fuel, which makes us a big target.”

When I wrote the previous blog on July 31, I wasn’t expecting to be writing about the topic again so soon. I’m happy to do so, however, and I believe that with the Army’s involvement, it won’t be long before the massive amounts of garbage we produce will provide a cheaper alternative to fossil fuels.

Risk Management in the News

Some days there are a plethora of risk management topics in the news, other days, not so much. Today we are in luck as I’ve come across quite a few risk management-related news stories that I hope you find interesting.

As risk management continues to evolve, we will continue to see compelling news articles focusing the various ideologies encompassing the discipline. More discourse regarding risk management means more thought about the topic and, hopefully, more real-world implementation.

Creating Value Through Risk

Understanding how value is created and destroyed and the role that risk plays in this process is the key to any successful business operation. But achieving this understanding is easier said than done. In a new, online-exclusive Risk Management article, Jorgen Ellingson, a risk manager with Dubai-based TECOM Investments, offers a useful way to simplify the process through the use of a value and risk management framework.

Managing value and risk is generally an intuitive skill and learned by experience. By applying a discipline to this inherent process you can better manage value creation and avoid destruction from both a quantitative and qualitative perspective. It is a balancing act between risk mitigation and risk exploitation and the winners will be those companies that understand the market and their value proposition better than their competition.

For more, read the rest of his informative article only on RMmagazine.com.