Success with Cryogenic Equipment for LNG
08 February 2024
Vanzetti Engineering is an Italy-based specialist in the design and manufacture of cryogenic equipment for liquefied natural gas (LNG) and air gases. The company’s range of products covers downstream applications in the LNG chain.
Vanzetti Engineering closed 2023 with a significant increase in turnover compared to the previous year and further growth is forecasted over the next three years thanks to the continuous development of cryogenic solutions with high technological content, to long-term partnerships and to the opening up of new markets.
The company delivers a complete range of cryogenic pumps and components for its main business sectors: marine, automotive, and industrial. Typical applications for Vanzetti Engineering’s solutions include fuel systems for marine engines and ship refueling; LNG/L-CNG refueling stations; transfer systems from road trailers and stationary storage tanks; satellite stations with power supply and support to the gas pipeline network, including power generation plants; medium and high-pressure filling of air gas cylinders (nitrogen, argon, oxygen) for industrial, food and medical applications.
Vanzetti Engineering is working at a new family of retractable pumps, targeting the small-scale LNG terminal market, and is strengthening its high- and low-pressure product range to access new segments of the marine dual fuel market. The company said it is also aiming to regain market share in the industrial gases sector, planning strategic investments for expansion into new geographical markets such as Asia and North America.
Looking at the current product range, the solutions that had the greatest market response in 2023 were the submerged cryogenic pumps of the Artika series and the VT-3 duplex high-pressure reciprocating pumps, a product used in the marine sector, deriving from a consolidated design of the VT-1 version used in the automotive sector and in various industrial gas applications.
The company ended the 2023 fiscal year with revenues of around €33 million, an order book of over €62 million, and an order growth trend CAGR of +20%. The growth, that confirms the trend of previous years, was mainly driven by the dual fuel marine market.
“I am proud to share our company’s achievements during 2023. This new milestone was largely driven by the development of the marine market, achieved through long-term partnerships and good relations with key players in Asia. They were essential in strengthening our international presence as a key player in cryogenic technology applied to diverse domains,” said Valeria Vanzetti Ghio, sole director of Vanzetti Engineering. “As we look to the future, we are aware of the challenges ahead and are ready to explore new opportunities to contribute even more to sustainable technological development.”
On a regional level, Vanzetti Engineering’s market is increasingly driven by Asia, which accounts for 70% of the total order, up from 2022. The remaining 30% of orders is covered by the European market, where the company has strengthened its presence, especially in the marine and biogas sectors, and has maintained its historical positioning in the automotive field.
The company said, the order book is expected to grow over the next three years in line with the market benchmark, albeit with less traction than in the last five years. This forecast is based on several factors related to both some market variables and Vanzetti Engineering’s new projects for the near future.
With its forecasts, Vanzetti Engineering is taking into account the possible slow recovery of the automotive LNG market in Europe, which is temporarily held back by the price of LNG due to the current geopolitical situation and electricity incentive policies. Another factor to consider is the increased competitive tension of methanol and ammonia in the alternative fuels market in the marine sector.
The company is also consolidating the extension of production capacity with the relative strengthening of the organization, while maintaining the high levels of quality and reliability of its products.
Vanzetti Engineering produces its cryogenic pump and skids from a 12000-m2 plant, opened a few years ago, which has allowed for a considerable increase in the company’s production capacity. A new multifunctional nitrogen test bench was completed in 2023.