Solaris provides products and services that help the oil and gas industry minimize the environmental impact and cost of hydrocarbon production by innovating solutions that improve efficiency, lower emissions, and reduce wellsite footprint. We also continually seek to minimize our own environmental impact in our manufacturing activity, field services operations and corporate functions.

100% Electric Fleet

Our Systems are all electric and do not rely on hydraulics. The traditional benefits of all-electric technology include:

  • Elimination of hydraulic fluid on site, resulting in fewer drips and spills.
  • Reduction in carbon emissions.
  • Improved reliability, which reduces time required to complete an operation, and lower maintenance requirements.
  • Up to 80% reduction in personnel in the low-pressure area increasing the health and safety of workers.
  • Ability to receive power from the same generation source used by the growing number of electric frac fleets (“e-fleets”) now being deployed to the market.
  • Reduction in live diesel fueling, which also leads to fewer drips and spills.

Smaller Wellsite Footprints 

Solaris’ technology allows oil and gas producers to significantly reduce the amount of land required to store and deliver sand and fluids by storing these materials vertically. This smaller footprint allows for the reduction of overall environmental impact and lowers costs due to reduced pad construction, development and reclamation required.

Dust Control

Each of our Proppant Systems is equipped with dust collection technology that filters and collects dust, and we have begun implementing our latest feature to all fleets, which will automatically return any dust back into the silo, where it is ultimately pumped downhole so that silica waste does not have to be disposed of separately. Our systems can also be equipped with a) AutoHopperTM that allows us to enclose the blender hopper and employ further dust collection capabilities or b) our proprietary AutoBlendTM  which eliminates multiple transfer points, further reducing the risk of potential dust exposure.

Repurposing of Idle Silos to Water Silos 

We are constantly exploring opportunities to repurpose our technology and create more sustainable manufacturing processes. Last year, we converted some of our older proppant silos into water silos as a new product utilization opportunity. It allows us to retain substantial cost savings, decrease emissions and reduce waste and environmental impacts associated with metal scrapping and manufacturing. When operating as a standalone product, these water systems are solar-powered, further reducing emissions and footprint by eliminating the need for back-up power at the wellsite. In the future these silos can be converted back to proppant silos if needed, demonstrating the flexibility of our technology and efforts to optimize existing assets.

 

Energy Efficient Lighting 

Built-in LED lights on the top and bottom of each silo system offer enhanced lighting of the wellsite and replace legacy light plants. This reduces need for other light sources powered by diesel engines and reduces fuel consumption and emissions for our customers and surrounding communities, while providing safer lighting conditions.

Fewer Trucks on the Road

Solaris’ technology helps to reduce emissions for our customers by reducing the number of sand and chemical truck trips required to keep a buffer of inventory at the wellsite. Several competing sand storage technologies require up to 15-20% more trucks to deliver and store the same amount of sand on a wellsite.

Our Proppant Systems can unload up to 24 trucks at a time, subject to footprint availability on a wellsite. The ability to unload multiple trucks simultaneously reduces emissions from potential truck demurrage, or truck wait/idle time. Many competing technologies are limited to unloading 1-2 trucks at a time, which can result in significant demurrage and engine idling at the wellsite and can contribute to increased emissions when compared to using Solaris’ Proppant Systems. Our latest Top Fill innovation further reduces unloading time and maximizes payload capacity, which should further reduce truck mileage and emissions for our customers and industry.

Software and Automation

AutoBlendTM Integrated Electric Blender: In 2021 we introduced AutoBlendTM, a new technology that extends our product offerings beyond a storage solution to include an integrated hydrated delivery system. This equipment is 100% electric and is the first true sand-to-mixing system. As the unit sits directly underneath our 6-pack sand silos, it immediately blends sand, water, and chemicals together and delivers the pressurized slurry to the fracturing pumps, thus effectively eliminating problematic traditional blenders from the wellsite. AutoBlendTM is also controlled remotely from the data van and is designed with redundancy to increase reliability and maximize uptime. Since sand is immediately mixed with fluids, our system reduces fugitive dust on location to improve worker health and safety.

AutoHopperTM Automated Sand Delivery: By using our AutoHopperTM technology, our sand systems can be operated automatically and remotely using machine learning and remote sensors. Automatic operation of our system can help prevent sand spillage on the wellsite and allows for less fuel consumption by reducing the need to bring equipment to the wellsite for sand clean-up after the job is completed. Our system’s automatic functionality also allows customers to remove a worker from the wellsite, resulting in enhanced health and safety. AutoHopperTM allows us to enclose the blender hopper, further limiting the presence of free-floating silica dust on location.

Belt Scales: This technology provides precise measurement of sand consumption that reduces manual sand tracking, as well as increasing trucking and wellsite efficiency by enabling hot loading, simultaneously offloading and consuming sand.

Solaris Lens® Inventory Management Software: Solaris Lens® provides our customers real-time vendor-to-blender data both at the wellsite and remotely. Our customers can access inventory levels at every step of the last mile supply chain via any browser or Solaris’ app. The focus of the platform is to automate the traditionally manual process of tracking inventories with a software architecture built to withstand heavy loads and integrate easily with other applications. Further benefits include:

  • Supply Chain Digitalization: Since our systems run on the PLC (programmable logic controller) network, an easy plug-in allows our equipment to instantly share data and integrate with our cloud services.
  • Data visibility and analytics: Within its diverse toolset, Solaris Lens® optimizes trucking operations to avoid overfill and miscalculations. Our customers can access historical and real-time data and customize analysis for export anytime and anywhere.
  • ESG benefits for our customers: By using Solaris Lens®, our customers are able to reduce both cost and additional equipment on location by more efficiently planning their inventory demands now that they have visibility of the entire proppant supply chain at their fingertips. This directly translates to reduced carbon emissions and increased worker health and safety.
  • Limitless integration opportunities: Solaris’ software suite can integrate with any customer platform, as well as many partner logistics platforms, and it is customizable to the customer’s needs. We have also starting integrating sensors and other devices for real-time equipment health monitoring. Ultimately, all available data to Solaris will be in time series format, resulting in near-limitless innovation and machine-learning opportunities.

Energy Consumption

Energy Consumption Overview

Solaris fuels its operations with four sources of energy:

  • Diesel fuel powers certain machinery at our manufacturing plant, our transloading facility and a small percentage of our fleet of service trucks.
  • Gasoline fuels 97% of our fleet of light duty service trucks.
  • We consume natural gas in our transloading facility.
  • We use electricity in our Early plant, Kingfisher facility, Monahans facility, and corporate offices in Houston.

Energy Intensity

In 2020, our energy consumption totaled 33,969 GJ, and our energy intensity was 634 GJ per million dollars of revenue (excluding third-party transportation revenue) ($M revenue). While our total energy consumption dropped 52%, our energy intensity increased 74% from 2019 to 2020. This increase is the result of a relatively larger decrease in revenue from reduced pricing, a shift in the geographic allocation of Solaris’ customer activity toward the Delaware Basin and reduced manufacturing activity in our Early plant. Energy consumption constitutes a small portion of Solaris’ total costs. Our total fuel and utility expense as a percentage of our total operating costs, excluding depreciation and third- party trucking costs, averaged around 3.2% for 2018, 2.9% for 2019, and 2.1% in 2020.

Gasoline Consumption

Solaris uses gasoline to fuel 97% of its fleet of light duty field service trucks. Our gasoline consumption decreased 52%, from 59,283 GJ in 2019 to 28,667 GJ in 2020, as our average Proppant System activity decreased 59% year over year. Our gasoline consumption intensity, rose 76% from 304 GJ/$M revenue to 535 GJ/$M revenue. This increase is the result of a relatively larger decrease in revenue from reduced pricing, in addition to lower activity levels, as well as a shift in the geographic allocation of Solaris’ customer activity toward the Delaware Basin. We are continuously reducing our gasoline consumption by monitoring our fleet’s idle time. We have also improved the reliability and remote monitoring capability of our systems, reducing the number of trips to wellsites that our field service technicians need to make for equipment repairs and maintenance.

Energy Intensity (GJ/$M Revenue)*

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Gasoline Intensity (GJ/$M Revenue)

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Energy Costs as a % of Operating Costs**

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Diesel Consumption

Diesel powers certain machinery at our Early manufacturing plant and our Kingfisher transloading facility. Although most of our field service trucks run on gasoline, approximately 3% are fueled by diesel. In 2020, on-road vehicles consumed approximately 45% of our total diesel fuel. In 2020, our total diesel consumption decreased 66% to 2,114 GJ, largely due to a reduction in overall activity levels. Our diesel consumption intensity rate, measured as gigajoules of fuel consumed per $M of revenue, increased 24% to 40 GJ/$M revenue from 32 GJ/$M revenue in 2019. We continually strive to reduce diesel consumption by closely monitoring idle time in our fleet of trucks through key performance objectives and employee reward programs. In addition, our increasing ability to remotely monitor the health of our wellsite equipment is decreasing the number of unplanned trips to location.

Electricity Consumption

Solaris’ primary electricity use is at our manufacturing plant in Early, Texas, but we also purchase electricity for use at our transloading facility in Kingfisher, Oklahoma, at our storage facility in Monahans, Texas and at our corporate office in Houston. In 2020, we consumed approximately 0.9 GWh of electricity, a 43% reduction from approximately 1.5 GWh in 2019. This reduction is attributed largely to reduced manufacturing and transloading activities. Solaris’ electricity usage in Early and Kingfisher fell by 45% and 46% in 2020, respectively. Our consumption of electricity constitutes Scope 2 greenhouse gas emissions, as described later in this report.

Natural Gas Consumption

Solaris purchases natural gas for use at our transloading facility, but natural gas represents a minimal portion of our total fuel consumption. Solaris consumed 0.23 GJ of natural gas in 2020 and 0.28 GJ in 2019.

Diesel Intensity (GJ/$M Revenue)

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Electricty Consumption (GWh)

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Natural Gas Consumption (GJ)

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At our Manufacturing Facility in Early, TX Solaris participated in MidAmerican’s Renewable Energy Program and the purchase of renewable energy certificates (RECs) certified by Green-e in 2020. This program matches 100% of our electricity usage with wind. 

Greenhouse Gas Emissions

Climate Strategy

Solaris acknowledges its important role in mitigating climate risk. We are committed to fighting climate change by providing innovative services that help our customers reduce carbon emissions. Moreover, we continually strive to reduce our own greenhouse gas emissions in our manufacturing activity, field services operations and corporate functions. By recording and publishing quantitative metrics such as Scope 1 and Scope 2 emissions, we provide transparency to stakeholders and hold ourselves accountable for our carbon footprint. Going forward, we will continue our focus on a safer environment by monitoring our greenhouse gas emissions, disclosing our carbon footprint to the best of our ability, and providing innovative technologies that help minimize our customers’ environmental impacts.

Emissions Practice

Solaris generates emissions primarily from our fleet of light duty service trucks, as well as from our manufacturing activity in Early. We have implemented programs over time, such as our remote monitoring systems, to reduce the fuel consumption and emissions from each source and focus on continual improvement.

  • Safe Mile Program: Solaris has implemented a truck monitoring program to track miles driven, speed, driving behavior and idle time. Truck idle time can be a source of unnecessary fuel consumption and emissions. By monitoring this and holding our fleet personnel accountable, we have reduced idle fuel consumption by approximately 50% in 2020.
  • Electric Power: In 2019, we began converting a portion of our fleet to integrate with e- fleets for power generation. When running off electric power, our systems can operate largely emission free, produce fuel savings for our customers and allow for better uptime of our equipment.
  • Preventative Maintenance Program – Our field service technicians follow a preventative maintenance program that includes a daily checklist for each system to ensure that all components operate properly, and that oil and filter changes are done regularly, which helps enhance the fuel consumption efficiency of our generators.

Scope 1 CO2 Emissions

Solaris generates direct emissions by operating our fleet of light duty service trucks, as well as at our Early manufacturing plant and at the Kingfisher transloading facility. In 2020, we estimate CO2 production of approximately 2,094 metric tons, 53% less than 4,450 metric tons produced in 2019. In 2020, we emitted 41 metric tons of CO2 in Kingfisher through the consumption of diesel fuel and natural gas, a 72% reduction from 2019. Our diesel fuel consumption in Early produced 53 metric tons of CO2, a 68% reduction from 2019. Our total field truck emissions fell by 52% in 2020. Our field trucks released 190 metric tons of CO2 while idle and 1,810 metric tons of CO2 while on the road, resulting in a total of 2,000 metric tons of CO2. Our strategy for managing Scope 1 emissions focuses on efficiency. Our truck monitoring program allows us to continually reduce truck idle time, a source of unnecessary carbon emissions. We are also employing remote monitoring technology on our equipment to help reduce unplanned truck trips to customer locations.

Scope 2 CO2 Emissions

Solaris generates indirect Scope 2 emissions by our electricity consumption in Early, Kingfisher, Monahans and Houston. In 2020, our consumption of 0.9 GWh of electricity translated to 620 metric tons of CO2 emissions. Our Scope 2 emissions decreased 43% in 2020 from 2019, mainly from decreased manufacturing and transloading activities in Early and Kingfisher. Overall, Scope 2 emissions accounted for 23% of our total carbon emissions in 2020.

Emissions Intensity Rates

Solaris’ emissions intensity rate measures our greenhouse gas emissions per $M of revenue. Our emissions intensity calculations include only Scope 1 and Scope 2 emissions. In 2020, our emissions intensity was 51 metric tons of CO2 per $M revenue. While our total carbon emissions dropped by over 50% to 2,714 TCO2 in 2020 from 5,543 TCO2 in 2019, our revenue (excluding third-party transportation) decreased 73% over that time, resulting in a 78% increase in emissions intensity as compared to 2019.

Scope 1 and Scope 2 Emissions (Metric Tons CO2)

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Sources of Scope 1 Emissions in 2020

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2020 Estimated Emissions (Metric Tons CO2)

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Water Management

Water Policy

Solaris’ primary use of water is at our manufacturing plant for fabrication, cleaning, testing, cooling and other industrial uses. We are committed to efficient water use and have integrated treatment and recycling into our operations in Early. We have also invested in a water filtration system so that any water that is not reused meets the city’s regulatory standards before it is returned through the stormwater drainage system. As we only operate in the United States, we do not consume fresh water in regions with high levels of water stress.

Water Use

Solaris used 618 cubic meters of freshwater in 2020. From 2018 to 2020, we reduced our water consumption by 27%, largely due to reduced manufacturing activity in the Early plant.

Water Usage (M3)

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Ecological Impact

Policy on Protected Areas

Solaris does not operate in protected areas and in areas important for biodiversity. For instance, we do not operate in areas designated under the World Conservation Union (IUCN) designation I-IV, UNESCO Natural World Heritage Sites, UNESCO Man and Biosphere Reserves, Key Biodiversity Areas, and wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention).

Waste Practices

Solaris responsibly disposes of waste in accordance with local laws and regulations. We rent dumpsters in Early to manage the waste from our manufacturing activities. The dust produced is filtered and reinjected into the proppant, which returns to the earth. Many of our competitors dispose of dust separately, creating unnecessary landfill waste and transportation costs and emissions. Solaris applies special care in disposing of hazardous materials. We clean our equipment in environmental facilities, where the soot can be processed and disposed of properly. Furthermore, because our systems are all-electric, we eliminate the need for hazardous hydraulic fluid at the wellsite. Lastly, since our fleet is young, we have not had to dispose of a material portion at this point.

Reuse and Recycling

In all our operations, we recycle packing materials and electronic waste. Steel is the primary raw material used in our manufacturing processes, of which we reuse or salvage the scrap metal.