ENOC Energy & Efficiency: The Story So Far

THE STORY SO FAR...

ENERGY & EFFICIENCY

1ST EDITION | 2015

01

LEADING E&RM POLICY & MANAGEMENT SYSTEMS IN DETAIL

02

PLANNING THE BUSINESS PLAN MODEL, COMPETENCY MATRIX, STAKEHOLDER MANAGEMENT

03

IMPLEMENTING & OPERATING KPI-BASED E&RM, EFFICIENCY OVERSEAS, PERFORMANCE & PRODUCT IMPROVEMENT

04

MONITORING, IMPROVING & COMMUNICATING CERTIFICATIONS, AUDITING, AWARENESS CAMPAIGNS, AWARDS

ENERGY & EFFICIENCY T H E

S TO R Y

S O

FA R

H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi

H.H. Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai

H.H. Sheikh Mohammed Bin Rashid Al Maktoum , Vice-President and Prime Minister of the UAE, and Ruler of Dubai

H.H. Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance

Welcome Note

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

It is my pleasure to introduce this report on energy and efficiency which has been extensively researched and collated by ENOC. The report underlines the initiatives undertaken across our organisation to promote world-class Energy & Resource Management (E&RM) practices as well as complementing the UAE government’s policy of promoting the judicious use of energy resources, which is mirrored in the Green Economy for Sustainable Development initiative announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

ENOC is at the forefront of integrating international E&RM best practices throughout all aspects of our operations. A clearly defined E&RM policy is now part of the ENOC Group’s strategic map.

We have also identified smart KPIs to achieve our energy and resource management goals through cost-effective methodologies, which enable us to efficiently manage our energy and resources.

Having adopted a scientific E&RM policy in 2008, ahead of the launch of ISO 50001, ENOC’s approach is aligned with the goals of the Dubai Integrated Energy Strategy, which is to reduce energy demand by 30% by 2030 and to diversify the Emirate’s energy mix. To this end, we have not only been focusing on increasing our energy efficiency but we have also rolled out ambitious initiatives including the opening of the Middle East’s first green service station and the use of cleaner, greener compressed natural gas as an alternative automotive fuel.

As the ‘power behind every successful journey’, ENOC remains committed to promoting sustainability for the benefit of future generations. Through our green and efficient energy and resource initiatives we are also supporting the nation’s ambition to become the global green-economy hub.

ENOC’s approach is aligned with the goals of the Dubai Integrated Energy Strategy, which is to reduce energy demand by 30% by 2030

Saif Humaid Al Falasi Chief Executive Officer ENOC

FOREWORDS

ENERGY & EFFICIENCY 2015

SAIF HUMAID AL FALASI Chief Executive Officer - ENOC

THE STORY SO FAR

Foreword

ENERGY & EFFICIENCY 2015

The work of the ENOC Energy and Resource (E&RM) Steering Committee has been instrumental in the development of ENOC’s E&RM policies and framework. The involvement of senior business unit managers, who represent the various business streams of the ENOC Group, has helped in shaping policies to suit current and forecasted challenges, look at future opportunities and take supportive leadership roles directly within the business units or indirectly in feedback to the committee which reports into the Executive Committee (EXCOM).

The committee has grown over the past year to incorporate more managers as the E&RM programme continues to mature. An important step was to engage with Business Unit (BU) Managers, who have continued to develop their understanding of the opportunities for energy and resource management and sustainability in general terms.

The committee has had some good joint meetings with the Technical Committee, which meets more frequently and has been effective in driving forward implementation plans. The Steering Committee has played a role in directing the focus of the Technical Committee. I believe the work of the Steering Committee will continue to grow and the focus of the initiatives will change over time to address new and upcoming opportunities.

In a nutshell, we consider the primary role of the Steering Committee to be the creation of strategies to ensure alignment with government E&RM strategies throughout development and performance update processes.

On this note, I hope you enjoy the read.

Saif Humaid Al Falasi Chief Executive Officer Chairman, E&RM Steering Committee

FOREWORDS

Since its inception more than two years ago, the ENOC E&RM Technical Committee has played an important role in driving the development and implementation of E&RM initiatives throughout the Group. Reporting into the ENOC Energy and Resource (E&RM) Steering Committee, the Technical Committee is primarily involved in the implementation of ENOC’s E&RM policies and framework. Here, the general involvement of business unit staff, including technical, maintenance, engineering, EHS and procurement technical buyer representatives, has made technical committee meetings an enriching experience. The committee members, who represent the various business units of the ENOC Group, have helped institute shared learning, knowledge transfer and strong technical debates within the context of the forum.

The committee generally has two members who alternate in representing each business unit. This has ensured that representation is guaranteed in every meeting. The committee has met with vendors, suppliers, consultants and other service providers and institute representatives during these meetings and this process has helped keep them keep abreast of the latest standards, technology and initiatives in E&RM. The committee has had the opportunity, through joint meetings with the Steering Committee, to showcase the programmes implemented and give effective feedback on the initiatives undertaken. The Technical Committee has played a role in accelerating the implementation of technical programmes and initiatives. I believe the work of the Technical Committee will continue to diversify and the focus of the initiatives will change as time goes on and new technologies and strategies are developed and the shared knowledge from case studies and pilot studies increases. It is important to note that one of the primary roles of the Technical Committee was to create centres of E&RM excellence, increasing the knowledge and competence of those who are responsible for stewarding and implementing E&RM initiatives and programmes on the ground. This has been instrumental in supporting the work of the Steering Committee to ensure alignment with government E&RM strategies throughout development and performance update processes.

Waddah S. Ghanem Al Hashemi Acting Executive Director, EHSQ & Corporate Affairs Director, EHSQ Compliance Chairman, E&RM Technical Committee

ENERGY & EFFICIENCY 2015

Table of Contents

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Welcome Note

Saif Al Falasi

Forewords

Saif Al Falasi, Waddah S. Ghanem

Table of Contents ENOC’s Global Footprint ENOC’s Fuel Value Chain The Continuous Journey Towards E&RM ENOC’s E&RM Journey Timeline Energy, Sustainability & Green Economy Initiatives

1 3 5 7 8 13

01

LEADING E&RM POLICY, STRATEGY & MANAGEMENT SYSTEM IN DETAIL, ETC. Interview

Farid Badri & Hamad M Al Mazam

Governance of Efficiency

Alia Ali Busamra

Meet the E&RM Steering Members Meet the E&RM Technical Members The ENOC E&RM Management Policy Interview

Petri Pentti

Waste Heat Recovery

Francisco Vina Brito

Blue Print for a Management System

P. Radhakrishnan

The Building Blocks of Efficient Buildings

Khalifa Al Qaizi

IIIuminating Savings

Abdoulkader Houmed Abass

Engaged on All Levels

Waddah S. Ghanem Al Hashemi

Interview

H.E. Ahmed Al Muhairbi

15 19 21 23 25 26 29 30 33 35 36 37

02

PLANNING THE BUSINESS PLAN MODEL, COMPETENCY MATRIX, STAKEHOLDER MANAGEMENT, ETC. The Challenge of Creating Accountability

Shamma Al Rahmah

From Awareness to Mastery One-Stop Online Shop British Industry Experts for the Gulf

Maria Blakely

Career Milestones

Mahesh Mankuzhy

Switching to Saving

Hamdan Al Doukhi

A Field Trip in the Name of Efficiency Mix and Match for Success

Shaker Mozdi

Cool Savings

Sathisha Shetty & Jeevan Paul

41 43 46 47 48 49 50 51 53

FOREWORDS

ENERGY & EFFICIENCY 2015

03

IMPLEMENTING & OPERATING KPI-BASED E&RM, EFFICIENCY OVERSEAS, PERFORMANCE & PRODUCT IMPROVEMENT, ETC. High Expectations

Alia Ali Busamra & P. Radhakrishnan

A Different Kind of Fuel

Fazal Ali Khan

Work in Practice

Mark Louie P Burling & Randy Montescarlos

Case Study: Gas-Fuelled Ferries Investing in the Future Winning Actions Case Study: Ending Water Waste

Bhaskar Sinha

Carbon Management for a Hydrocarbon Manager

Fazil Abdul Rahiman

Trial and Error

Alia Ali Busamra

Research Outside the Core Business

Waddah S. Ghanem Al Hashemi

Tank Trucks Tighten Their Belts

Waleed Haidra & Vallilath Unnikrishnan

Case Study: Want not, waste not

Bhaskar Sinha

A Dry Car-Wash and Vapour-less Pumps Bird’s View on Our Buildings

Sachith Kumar K.V

Case Study: Plug Into the Sun

Kasirajan Saravanan & Manoj Sukumaran

Fine Tuning the Procurement

Priyalal Liyanage

A Global Footprint

Fahad Askar

Terminals on the Horizon

Kasirajan Saravanan & Manoj Sukumaran

55 58 59 60 61 63 64 65 67 69 73 75 76 78 82 83 85 86

04

MONITORING, IMPROVING & COMMUNICATING CERTIFICATIONS, AUDITING, AWARENESS CAMPAIGNS, AWARDS, ETC. Regular Health Check Ups for Efficiency

Alia Ali Busamra & P. Radhakrishnan

Case Study: Locking Out The Sun

Ahmad Dardas

Everyone Onboard ENOC Energy Award Supercharged Data Management Fuelling Wellbeing In the Spotlight ISO in Action

Owais Ahmed & Vinoy Skariah

Gas on The Carousal

Gopalakrishnan Vinod

We Say Thank You… Thank you & Goodbye

Waddah S. Ghanem Al Hashemi

89 93 94 97 99 100 101 102 104 106 107

ENOC At a Glance

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

ENOC’s Global Footprint

United Arab Emirates ENOC Supply & Trading LLC ENOC Processing Company LLC Dubai Natural Gas Company Ltd Emirates Petroleum Products Company (EPPCO) LLC Horizon Terminals Ltd Horizon Emirates Terminals Ltd ENOC Fuel Supply Company LLC ENOC Marketing LLC ENOC Lubricants & Grease Manufacturing Plant LLC Emirates Gas LLC ENOC Commercial & Distribution LLC Gulf Energy Maritime (GEM) LLC – 35.62% EPPCO Projects LLC – 51% EPPCO International Ltd – 50% Vopak Horizon Fujairah Ltd – 33.33% ENOC Tasjeel LLC Cylingas Company LL Global Technology Services LLC ENOC Retail Systems LLC ENOC Bunkering International LLC Fujairah Energy Petroleum Company LLC – 50% Dubai Carbon Centre of Excellence – 25% Kingdom of Saudi Arabia Arabtank Terminals Company Limited – 36.5% Saudi Emirates Fuel Company LLC United Gulf Aircraft Fueling Company – 49% Djibouti Horizon Djibouti Terminals Ltd – 44% ENOC Djibouti FZCO - 45.6% Morocco Horizon Tangiers Terminals SA – 34% United Kingdom ENOC Services (UK) Limited Singapore Emirates National Oil Company (Singapore) Private Ltd Horizon Singapore Terminals Pte Ltd – 52% ETL Falcon Pte. Ltd. Falcon Grace Pte. Ltd. Falcon Victory Pte. Ltd. South Korea Horizon Taeyoung Korea Terminal Limited – 50% Turkmenistan Dragon Oil plc - 54% Malaysia ESL Limited

FOREWORDS

United Arab Emirates

Kingdom of Saudi Arabia

ENERGY & EFFICIENCY 2015

South Korea

Morocco Turkmenistan United Kingdom

Singapore

Djibouti Malaysia

4

ENOC At a Glance

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

ENOC’s Fuel Value Chain Procurement

Processing

FOREWORDS

Storage

ENERGY & EFFICIENCY 2015

Sales

Business Segment Activity

STP

Marketing

Retail

Terminals

6

The Continuous Journey Towards Energy and Resource Management

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

The beginnings Even before ENOC had an official energy and resource management policy, the company was engaged in environmental management.

Starting with the release of the draft Environmental Management System (EMS) in 2007, compliance audits commenced in 2007 and corrective actions and improvement plans were soon initiated by the business units.

One of the primary requirements of an EMS is that relevant environmental aspects and their impacts are identified, evaluated and controlled. The analysis clearly revealed that the main concern was the wasteful use of energy and resources, including for example, the discharge of waste water, use of electricity and natural resources, emissions of carbon dioxide and carbon monoxide, solid waste generation, leaks and spills and so on. By controlling these aspects, energy and resources are automatically used more efficiently.

Within this early EMS, the need for more stringent KPIs became evident, so a reduction target of 10% was set on consumption of electricity, water and fuel and the reduction in the quantity of solid waste, as well as discharges of water and emissions.

Unfortunately, these early KPI targets were either achieved in an unstructured manner, documented with inconsistent data or not achieved at all by the business units.

Start of the journey - E&RM Policy and Manual Energy and Resource Management (E&RM) then became formalised in late 2008 with the framing of the Energy and Resource Policy, addressing: Measurement, monitoring and analysis of energy and resource use Wasteful use and reuse of energy and resources Use of renewable energy Energy and resource efficiency in purchase of equipment and design Training, competency and awareness of energy and resource use efficiency As with any policy, it did not provide any guidance or standards for implementation and therefore the Energy and Resource Management Manual (E&RM Manual) was developed. The draft manual was issued to all business units for consultation and testing in late 2008.

At the time, there were no internationally accepted standards for energy and resource management. The first such standard, BS EN 16001, was issued in July 2009. Due to its novelty, the period of consultation and testing was unusually long and the manual was approved and issued in Jan 2010. Though the manual was in draft form, audits commenced from 2009 onwards and also formed part of the testing and consultation phase of the manual.

In the midst of ENOC proactively setting a framework for energy and resource management, the Government of Dubai took the lead on an Emirate level by setting up the Dubai Supreme Council of Energy (DSCE) in 2009. In the six years that have passed, it has become evident that both processes and guidance are complementary.

FOREWORDS

ENERGY & EFFICIENCY 2015

E&RM Journey Timeline GOAL 20% reduction to be achieved in next 6 years in office buildings

Continue stressing energy efficiency

2014

Stringent regulations on energy efficiency introduced

Structured reporting started of Quick Wins

2012

Release of DIES 2030

Development of DIES 2030.

Concept of Quick Wins introduced

2010

DSCE established

2008

2015

Aligning E&RMS audits with ISO 50001.

Monitoring, verification & consolidation of E&RM BPs. Conducting energy audits

Introduction of new KPIs. Verification & monitoring of Business Plans savings & E&RMS. Energy Audits

2013

Implementation of revised benchmark of E&RM audit score target & inclusion of Business Plans in BSCs. EI training

Setting up of ENOC E&RM S&TCs. ISO 50001 training

2011

Audit scope expanded.

ISO 50001 standard adopted

ENOC E&RM policy & draft manual approved. Commencement of audits.

CAPs were developed

2009

Draft E&RM policy & system manual (GEHS/M/20) were sent to all ENOC BUs for consultation on 24th June.

A trial audit was conducted. First International Standard BS EN 16001 was issued in July

E&RM policy & system manual were conceptualised.

Draft E&RM policy & system manual (GEHS/M/20) were developed

8

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

ENOC’s EHSQ Policy

E&RM audits and corrective actions International best practice and ENOC’s procedures require periodical audits to ascertain the degree of compliance, which started in 2009, and most of the business units were audited by 2010. As expected the scores in the audits were initially below the target of 2 out of 4 (on average 1.56).

The reasons were mainly:

ENOC is committed to operational excellence and be 'best-in-class' for stakeholder satisfaction, prosperity and sustainable growth. Our products, assets and services shall be safe and comply with all applicable laws, regulations and other requirements that we subscribe to.

ENOC commits to be a socially responsible entity and conducts its business in an ethical, transparent and sustainable manner. EHSQ Compliance is an inherent part of our business planning, strategic and operational objectives.

As Such We Shall: Protect the safety and occupational health of our employees, contractors, customers and general public, in so far as they come in contact with the company or its products as far as reasonably practicable.

Use cost-effective methodologies to manage our energy and water resources proficiently, whilst aligning ourselves with the policies and strategies of the Dubai Supreme Council of Energy.

Prevent pollution, preserve biological diversity, and safeguard the environment for sustainable development Minimize risks to people, assets, and the surrounding community which may be affected by our operations by controlling the design, build, operation and maintenance of assets under the protection of appropriate emergency response systems and facilities.

Audit and review our performance and practices against this policy and ensure continual developments and improvements.

Work closely with regulators, Government stakeholders and industry peers in the development of EHSQ standards and initiatives and share good industry practices; Have transparent, well documented, easily understood and accessible processes and systems.

Train and motivate all employees and contractors to understand and implement this policy, and to make it available to all stakeholders to encourage dialogue.

Review the suitability of this policy at least once every three years to maintain its relevance and to identify areas for improvement.

Report EHS ‘Critical Success Factors’ as KPIs to reflect our own, and more importantly our stakeholders' perception of our EHSQ performance.

The Management shall provide all necessary resources to enable the implementation of EHSQ management systems; and promote this culture in cooperation with our employees.

Inadequate measurement of energy and resource consumption and use Lack of analysis for savings potential and hence no scientific conservation plans and objectives Lack of training and competency related to energy No policies in place for considering energy efficiency in purchase and design High priority corrective actions such as measurement and analysis were implemented on a priority basis.

The Dubai Integrated Energy Strategy 2030 (DIES 2030) was issued in 2011. It aims to reduce electricity demand across the Emirate by 30%. The process is supported by Demand Side Management (DSM), with ENOC being one of the appointed members.

In 2011, ENOC expanded the E&RMS audit scope to include the requirements and objectives of DIES 2030 and the newly issued (2011) international standard ISO 50001, “Energy management systems – Requirements with guidance for use”.

In 2012, the DSCE made it mandatory for all government entities to report their plans, investments and savings from implementing quick-win measures. Through its three years of experience, ENOC already had a head start.

As a large part of the corrective actions were completed in 2013, a second round of audits of the E&RMS were carried out, now with a target score of 3 out of a maximum of 4.

The average score during this set of audits increased to 2.71 from the earlier 1.56, a substantial improvement of 74%.

FOREWORDS

E&RM Steering & Technical Committees and KPIs

ENERGY & EFFICIENCY 2015

More Efficient by the Year‌ Electricity Units Million kWh

Until 2012, most of the initiatives towards E&R efficiency management were driven from an Environment, Health and Safety (EHS) perspective.

In 2012 it was decided that energy and resource management needed to be addressed on its own merits, but with close cooperation with EHS functions. The ENOC group strategic map aligned ENOC’s strategy with the DSCE requirements and the ENOC group EHSQ policy was amended to include energy and resource use and management as a guiding principle.

Many employees and managers had only a rudimentary understanding of structured and formal energy management systems. Hence, training programs on the ISO 50001 standard were organised for different levels of employees, including managers.

Two key committees were established in 2012, being the E&RM Steering Committee and the E&RM Technical Committee. Meetings take place at set intervals and are agenda-driven and actionable. Apart from implementing the guidance of the Steering Committee, the Technical Committee meetings also serve as a forum for sharing knowledge and information, such as the results of pilot studies, supplier presentations, benchmarks and so on.

2012 also saw the advent of the ENOC Energy Awards, recognising and commending great performance on energy related issues.

In 2013, energy and resource awareness programmes were developed in-house and have been delivered throughout the years since.

The Energy Institute (EI) developed and delivered training programmes to build competency for key personnel, such as technicians and engineers/ managers. The training was timely as the UAE had started introducing regulations on the energy efficiency of equipment and buildings, such as star ratings for equipment and green building regulations.

In parallel, a competency matrix was developed for energy and resource management related skills by amending the existing EHS competencies.

2013

472

438

421

7%

11%

% reduction over 2012

2014

The above reduction is in spite of an approximate 50% increase in throughput by EPCL. Given below is the electricity use per unit of production Units

2012

kWh/unit production

2013

77

% reduction over 2012

2014

53

54

31%

30%

Electricity use % 2014 60% 50% 40% 30% 20% 10% 0%

52%

23% 14%

EPCL

Dugas

10%

Retail

Other Bus

Water Water is primarily used in the process for EPCL and Dugas and for domestic use in retail Units

2012

kL

E&RM competencies and training

2012

2013

2014

1,878,464 2,071,753 2,000,328

% reduction over 2012

-10%

-6%

Consumption increased due to a large increase in the throughput of the refinery Units

2012

kL water/unit production

0.307

% reduction over 2012

2013

2014

0.250

0.248

18.6%

19.4%

Water use % 2014 35% 30% 25% 20% 15% 10% 5% 0%

29%

10%

5%

Dugas

Retail

Others

Fuels The main fuel used is natral gas by the EPCL and Dugas. All other units use a small amount of diesel fuel Units Tons of fuel

2012

2013

2014

336285

369122

336348

-10%

0.0%

% reduction over 2012

Consumption has increased due to a large increase in the throughput of the refinery Units Kg fuel/unit production % reduction over 2012

2012

2013

2014

55

45

42

19%

24%

Gaseous Fuel use % 2014 70% 60% 50% 40% 30% 20% 10% 0%

62% 38%

EPCL

Dugas

C2

LG2

IP2

F2

The highlighted elements are linked to energy and resource management.

LG1

IP1

C1

F1

C3

LG3

IP3

F3

C4

ENERGY & EFFICIENCY 2015 THE STORY SO FAR

ENOC Group Strategic Map

FOREWORDS

ENERGY & EFFICIENCY 2015

Management Systems The vision of ENOC has always been to be a leading regional integrated oil and gas group that is highly profitable and socially responsible towards employees, the community and the environment. In order to achieve this vision, ENOC has set long-term strategic goals. The main strategic goals of ENOC are to align with the UAE’s energy needs and contribute to economic development, improve operational performance and achieve sustainable profitable growth, continue to build scales in strategic assets to deliver high returns on capital investment, expand into new markets and enhance competitive positioning by leveraging supply chain strengths and brand image, build a profitable E&P portfolio and create synergies, and to be the employer of choice.

To achieve consistency in any process, robust management systems and discipline are essential. Hence KPIs were introduced in 2013 covering areas of the E&R audit score, attendance at committee meetings, timely and accurate data submittals and adherence to energy-related training plans.

There are four key domains ENOC endeavours in: financial, customers, internal processes, and learning and growth. In the financial domain, ENOC strives to increase investment returns, achieve sustainable profitable growth and maintain a sound financial position. In the domain of customers, ENOC strives to achieve business expansion and to satisfy stakeholders through exploring strategic opportunities, increasing product volumes, meeting and exceeding customer expectations and enhancing the brand by being socially responsible.

Monitoring, verification and future plans

In the domain of internal processes, ENOC strives to achieve business process excellence by ensuring that there is a high level of governance and operational standards, increasing operational efficiency, and accelerating the capital investment programme. In learning and growth, ENOC strives to heighten organisational capabilities and culture by attracting, developing and retaining competent people and leveraging knowledge management and information systems, as well as creating a highly innovative and engaging workplace. All four domains are linked to one another forming the current ENOC Strategic Map, which is the Group’s guide towards the fulfillment of the set strategic goals and achievement of the long-term vision.

In the same year, a second KPI called the Energy Business Plan (BP) was introduced, covering both leading and lagging indicators. The leading indicator consisted of a requirement for the business unit to submit a five year plan for a reduction in the use of energy and resources with savings, investments, timelines and responsibilities identified for all significant use areas. The lagging indicator was the achievement of the planned savings – the results. Both the management system and the BP were included as one of the elements of the Balanced Scorecard (BSC) for all operating units, streams and the ENOC Group as a whole.

In 2014, the BP KPI was enhanced by a requirement of 50% additional savings over the original savings target via a supplementary energy business plan. While the original KPI in 2013 was to develop an energy BP, the 2014 KPI included achievement of the planned savings.

In 2014, ENOC introduced verification of audits and corrective action plans and savings in line with the principle of continual improvement. Specialised third party audits were required from the business units in different areas of energy use such as lighting, HVAC, compressed air and process heating.

Overall, most of the business units performed as per their plans.

The journey towards energy efficiency is one that does not have an end.

Therefore, ENOC is considering the following initiatives for the future: Third party energy audits Providing energy efficiency related technical training in specialised areas such as pumps, compressors, HVAC and lighting Energy Management Systems training such as auditing, ISO 50001 awareness and implementation Aligning the existing E&RM manual with ISO 50001 Obtaining LEED certification for existing buildings Benchmarking It is believed that many of the initiatives stated above will be adopted and implemented in the next three years as a way forward.

12

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Energy, Sustainability and Green Economy Initiatives

Directorate, Brands and Corporate Communication Department; Group Human Resources; and Group Finance. Moreover, ENOC identified the sections of overlap within the three areas and believes that in order for these initiatives and activities to be managed properly, they need to be well-communicated to all of the concerned departments. The most prominent initiatives that lie at the core of the overlap are the E&RM Benchmarking Studies, the ENOC Sustainability Report, the ENOC’s Energy and Efficiency Report, the UAE State of Energy Report, the ENOC Green Strategy, and the UAE State of Green Economy Report.

ENOC is fully committed to achieving sustainable development and highly profitable growth and serving the growing energy requirements of Dubai.

In order to accomplish this, ENOC has initiated a number of projects and taken up various energy-saving initiatives. The initiatives were spread out to fall under three pertinent areas: energy and resource management; sustainability and corporate social responsibility, and green economy.

Currently, these initiatives are handled by the Group EHSQ Compliance

Energy & Resource Management (Group EHSQ Compliance)

Sustainability & CSR (BCCM/HRD) Tahadee Initiative

E&RM Policy E&RM Steering Committee E&RM Audits

Green Stations

E&RM Technical Committee

Green

E&RM GEHS Standard GEHS/M/036 E&RM GEHSQC Awareness and Competency Training Programs Energy Institute Corporate Membership

CSR Initiative

E&RM Public Presentations

E&RM KPIs

ENOC CSR Policy & Committee

Initiative with UNDP - Food Fuel Program

Initiatives

Employee Engagement in Green InitiativesInnovative Scheme

E&RM Benchmarking Studies

Earth Hour

ENOC Sustainability Report

World Environmental Day

ENOC Energy & Efficiency Report E&RM Business Plans for Efficiencies DSCE Fuel Abatement Strategy Committee DCCE PJSC Shareholding

UAE State of Energy Report UAE Green Strategy UAE State of Green Economy Report

Green Business Planning

E&RM Energy & Resource Management CDM Clean Development Mechanism UNDP United Nations Development Program DSCE Dubai Supreme Council of Energy GEHSQC Group Environment, Health, Safety & Quality Compliance

Sponsorship of Green Initiatives Green Investments - ie Solar Park Investment

Dubai Green Economy Partnership

DSCE-Demand Side Mgt

Project AppraisalCarbon Management

Tarbut Initiative

CDM &Carbon Credits

Green Economy (BP&PM - Group Finance)

ENOC Wellness & Social Activities Program Charity Work

LEADING

E&RM POLICY, STRATEGY & MANAGEMENT SYSTEM IN DETAIL, ETC.

Interview Farid Badri & Hamad Al Mazam

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Aligned to Dubai’s Strategy ENOC’s structured approach to steer and execute resource efficiency.

Twenty-two years of history frames ENOC’s journey in becoming a leading regional integrated oil and gas group that is both profitable and socially responsible. In 2008, ENOC identified efficient Energy and Resource Management (E&RM) as a crucial element in its roadmap. Since then, carefully measured targets have been set, starting from a unified E&RM policy and subsequent manual. With compliance audits and corrective action plans for the future set in place, ENOC’s focused approach in developing best practices across its operations has been evolving steadily for the past five years.

In 2012, ENOC established a dedicated Steering Committee, a General Technical Committee and Technical Committees for each business unit to align ENOC’s business practices with the company’s Group Environment, Health, Safety and Quality Compliance (GEHSQ) and Dubai Supreme Council of Energy’s (DSCE) policies and guidelines. How is this carried out?

ENOC’s EHSQ policy has recently been revised to align ENOC’s E&RM strategy with DSCE requirements

F.B.: The Steering Committee defines targets for the Technical Committee based on its E&RM overall strategy and the requirements of DSCE, international best practice standards and GEHSQC policies and guidelines. Once these targets are defined, the members of the Technical Committee develop plans taking into account significant areas for E&RM, projected costs and savings, measurement and monitoring methods, and by mapping out milestones and a feasible timeframe for projects. Once these plans are approved, the relevant business units are responsible for implementation.

CHAPTER 01 LEADING

FARID BADRI

HAMAD AL MAZAM

DIRECTOR REFINING OPERATIONS IN ENOC PROCESSING COMPANY LLC (EPCL)

SENIOR MANAGER OPERATIONS & MAINTENANCE IN DUGAS OUTLINES

ENERGY & EFFICIENCY 2015

How does the Steering Committee reconcile ENOC’s existing policies in line with these external bodies?

H.M.: Since its inception, the Steering Committee has developed a new energy policy that aligns ENOC with external bodies’ guidelines. The committee assigned some of the members to be active members in DSCE. At present, I am a member of DSCE’s Gas Supply. I chair internal meetings in my organisation with a group of talented and experienced members from management, engineering and EHS departments. Within the Steering Committee, we develop programmes and tasks in line with timelines for achieving long-term plans, while projecting future conditions. We examine the macro-picture to plan and develop energy saving strategies, which can benefit the organisation without compromising safety and environment regulations. Our quarterly meetings ensure transparency and open lines of communication within the committee.

F.B.: A transparent, well-run channel of communication ensures that all parties involved are aligned. ENOC’s own representatives who sit on various committees within external bodies regularly update the Steering Committee during our scheduled meetings. Based on feedback, we review existing policies and examine how they can best meet the requirements and guidelines set by external bodies. As an example, the ENOC EHSQ policy has recently been revised to align ENOC’s E&RM strategy with DSCE requirements. ENOC has also developed a standalone E&RM policy to set up an infrastructure for achieving energy and resource management objectives.

Transparency through these open channels of communication allow for an increase in response time and adaptability, which helps us achieve our objectives in a unified manner.

each policy takes into account a balanced scorecard, which includes energy implementation as a key performance indicator

16

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

What does the Steering Committee use as a marker of progress?

FARID BADRI

HAMAD M AL MAZAM

DIRECTOR REFINING OPERATIONS

SENIOR MANAGER OPERATIONS & MAINTENANCE

Mr. Badri holds a Bachelor’s degree in Chemical Engineering and Petroleum Refining from the Colorado School of Mines, USA. He has been with ENOC for 19 years, during which he has developed experience in refining operations, process engineering, trading of hydrocarbon products and marine operation activities.

Mr. Al Mazam began his career as a Process Engineer in the GASCO BAB plant in Habshan area. He held a diverse array of positions across the GASCO Ruwais and Buhasa plants, as well as the Sajja gas plant in Sharjah before assuming his current role.

Statement “In line with our stated Integrated EHSSQ Policy and the direction set by our shareholder ENOC, we have been undertaking projects since 2013 to conserve electricity. 51 pole lights in the petroleum storage tank farm and yard have been replaced with LED lights, resulting in savings of approximately 60000KWH per year. In 2015 we are planning to replace additional pole lights in our storage tank farms with LEDs and to do engineering work in order to automate our truck loading pumps as part of our energy saving strategy.”

Nabeel Abdul Kareem, GM of EPPCO International Ltd.

H.M.: Held in place by clearly defined gauges, each policy takes into account a balanced scorecard, which includes energy implementation as a key performance indicator (KPI). The KPI calculation includes energy savings that meet DSCE and GEHSQ targets and requirements.

F.B.: The Steering Committee has set two KPIs related to energy and resource management on a corporate level. This is in addition to the existing KPIs of our own Business Units, which reflects improving overall efficiency and reducing costs. The first E&RM KPI is related to compliance with the ENOC E&RM manual and the second is related to developing Energy Business plans. These two KPIs are monitored on a quarterly basis, examining what was planned versus what was achieved.

The results are reported to the highest level to track overall performance.

How is the Steering Committee expected to appraise E&RM projects from an investment perspective?

H.M.: Approved energy plans are monitored in phases using a variety of calculations, such as the payback period of implemented energy saving measures, CO2 savings, cost savings and energy resources savings. With each measure in place, we have involved the procurement department, which is responsible for thoroughly researching and testing energy saving equipment, machines, tools and appliances before purchasing them for operational efficiency.

F.B.: The Steering Committee acts as an overseer of various projects proposed by the different business units within ENOC. This guarantees that all projects are focused and in line with the overall group-wide strategy.

It is the responsibility of the business units to ensure that the company’s investments in their proposed projects are successful in achieving their objectives, including securing financial returns. The business units are, after all, experts in their niche subject matter, and are in the best position to ensure the all-round success of a project.

CHAPTER 01 LEADING

In your opinion, how can ENOC align its business in conventional energy with Dubai’s move towards diversifying its energy mix?

Are these two fields compatible?

F.B.: In the case of ENOC Processing Company LLC (EPCL), we have created an Energy and Resource Management team consisting of members from operations, engineering, processing, EHS and maintenance. The mandate of this team is to measure and analyse energy consumption through extensive strategies, including benchmarking against other refineries, and proposing possible industry-wide best practices and Capex investments. The team also troubleshoots deviations from the design basis and tracks the investment plan to ensure that the focus is not lost.

From an EPCL point of view, energy is primarily consumed for thermal heat, and therefore it is very difficult for us to move away from hydrocarbon fuels— either gas or liquid. In addition to core operations, energy is also consumed for the production of electricity.

Having said this, we do try our best to ensure that our operations are at their most efficient.

We are constantly increasing the barrels of feedstock consumed in relation to the

hydrocarbon burned. For example, waste gas that would have otherwise been burned in the flare now generates 50 percent of our thermal and electric needs. This is a small yet significant move.

H.M.: The committees that I am part of not only examine energy saving from a planning and strategy perspective, but also take into account how these plans reduce the company’s carbon footprint and emissions.

From its foundations to its various iterations, ENOC’s committees are collaborative, transparent and pragmatic in their functions, making the company’s journey towards a unified vision smooth and sustainable into the foreseeable future.

ENOC, as an energy company, is delivering on the energy needs in the fast growing economy of the Emirate of Dubai. However, since Dubai is in fact a net importer of energy both liquid and gaseous, we are very conscious about the financial impact of the utilisation of resources as well as the environmental impact.

Therefore, energy management is significant in our sustained growth plans.

ENERGY & EFFICIENCY 2015

waste gas that would have otherwise been burned in the flare now generates 50 percent of our thermal and electric needs. This is a small yet significant move

18

Governance of Efficiency

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Two committees, two chairs, 41 members, 16 alternates and one joint goal When establishing a structured approach to Energy and Resource Management (E&RM), two major requirements became apparent: firstly the need to steer the programme based on continuous monitoring and secondly to log and communicate success stories to ensure visibility and ongoing buy-in from top management, business units and teams.

With that in mind, ENOC established two E&RM Committees in 2012. The first is a Steering Committee, which is a toplevel committee that includes members representing ENOC’s business unit heads.

The committee also includes internal stakeholders who have direct responsibilities and accountabilities in E&RM, including Group Finance (GF), Group Procurement and Contracts (GPC), Group Engineering and

ENOC E&RM Steering Committee Mr. Saif Al Falasi

CHAIRMAN CEO VICE CHAIRMAN SECRETARY

ALIA ALI BUSAMRA SENIOR EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Ms. Busamra holds a B.Sc. Degree in Chemical Engineering and a M.Sc. Degree in Environmental Sciences. She is Coordinator of the ENOC Energy and Resource Management Steering Committee and Secretary of ENOC’s Energy and Resource Management Technical Committee and member in Dubai Carbon Abatement Strategy Technical Committee.

COORDINATOR

HTL GPC

E&PM

AS&FM

(represening overseas Terminals)

Rep. of 12 BUs

Project Management (GE&PM), Administrative Services and Facilities Management (AS&FM) and Horizon Terminals Limited (HTL) Group representing overseas Terminals.

The second committee is the Technical Committee, which brings together technical representatives from ENOC’s business units and other members including Group Procurement and Contracts (GPC), Group Engineering and Project Management (GE&PM), Administrative Services and Facilities Management (AS&FM) and Horizon Terminals Limited (HTL) Group representing overseas terminals. The Technical Committee is constituted of highly qualified engineers with a strong overall understanding of their own operations and activities and the technical aspects of E&RM and related standards.

ENOC E&RM Technical Committee CHAIRMAN Mr. Waddah Ghanem Director - EHSQ Compliance VICE CHAIRMAN SECRETARY TECHNICAL ADVISOR

Rep. of 12 BUs

HTL (represening overseas Terminals)

AS&FM

E&PM

GPC

ENOC Group Finance

In the three years since establishment, the committees have accomplished a number of tasks and are involved in various activities such as: Formulating ENOC’s overall strategy for energy and resource management Establishing ENOC’s energy and resource management KPIs Developing ENOC’s energy and resource management competency and capacity building and organising required training with BSI and the Energy Institute (EI) for all business units Facilitating Business to Business (B2B) contacts between energy and resource management service providers and users Integrating energy and resource management concerns during the engineering design stage

Incorporating energy efficiency standards into ENOC’s corporate procurement and purchasing procedures Interacting with government departments and conducting site visits, seminars and exhibitions Knowledge-sharing through ENOC’s Group EHSQ Compliance Portal Facilitating quick wins for business units Conceptualising energy and resource management business plans and guiding business units in the preparation of their plans Encouraging business units by recognising their efforts through the ENOC Energy Award

CHAPTER 01 LEADING

ENOC will reduce its overall costs and align its strategies with the Dubai Integrated Energy Strategy 2030 through:

01

ENERGY & EFFICIENCY 2015

Within this framework, the Steering Committee provides guidance and resources and defines targets for the Technical Committee to develop longterm plans to ensure energy management practices and projects are defined and implemented to meet the requirements and strategy of the Dubai Supreme Council of Energy (DSCE), international best practice standards and Group EHSQ compliance with policies, guidelines and manuals. It also acts as an apex group within ENOC that helps in the development, review and endorsement of policies and principles with respect to energy and resource management. Additionally, the members act as reviewers and approvers for projects proposed by the Technical Committee relating to energy and resource conservation and improved utilisation. The committee also appraises the projects from an investment perspective.

On the other hand, the Technical Committee develops, implements and maintains long-term plans to ensure energy management practices and projects are in compliance and aligned with the requirements and strategy of the Dubai Supreme Council of Energy (DSCE), international best practice standards and Group EHSQ compliance policies, guidelines and manuals. The committee also helps in the development, review and endorsement of technical standards, codes, practices, and projects related to energy efficiency and sustainability. Additionally, the members act as independent reviewers for projects proposed by different business units relating to energy and resource conservation and improved utilisation.

The committee also appraises the projects technically and reviews and suggests alternative energy solutions including renewable energy solutions.

Identifying where, when, why and how much E&R is used in all its activities Measuring, monitoring, analysing and benchmarking E&R use in all areas in order to determine the potential for E&R conservation and cost savings

02

ENOC E&RM Steering and Technical Committees

Developing, implementing, monitoring and reviewing comprehensive plants to achieve potential savings in the areas and activities identified above

EXCOM

Direction and Governance

Identifying potential synergies amongst its entities in sharing E&R so as to reduce overall costs to the entire group

−− Provide guidance and resources −− Define targets to develop long-term plans −− Meet the requirements of DSCE, IBPS, GEHSQC policies and guidelines

03 Developing and implementing plans to improve the competencies of all personnel whose work can impact E&R use and costs

Develop and maintain long-term plan to meet targets

➜

Aligning ENOCs E&RM policies, strategies and procedures with those of the Dubai Executive Council, DSCE and other regulatory bodies

Both committees are aligned with ENOC corporate governance being the Executive Committee (EXCOM). The EXCOM in ENOC is the primary management forum of the group for decision-making purposes comprising of the Chief Executive Officer and a team of highly qualified, dedicated and experienced leaders who understand what it takes to successfully steer an oil and gas group.

E&RM Steering

E&RM Technical

The CEO, with the support of the Director - EHSQ Compliance, chairs the high level Steering Committee. The committee is composed of up to 22 members and 1 alternate from across the organisation and meets twice annually. The Director-EHSQ Compliance, with the support of Chief EHS Compliance Officer (Environment & Energy) who acts as a Secretary of the Steering Committee, chairs the Technical Committee. It consists of 19 members and 16 alternates. The committee meets every alternate month to exchange ideas and technical information in 24 meetings as per April 2015.

The committees meet jointly twice per year to strengthen interaction, improve dialogue, create a mechanism for coordinated actions and to discuss progress.

20

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Meet the E&RM Steering Committee...

23

23

7

22

7

22

6

21

21

6

20

5

5

1

Saif Al Falasi

2

Waddah Ghanem

3

Radhakrishnan

4

Hesham Ali Mustafa

5

Alia Busamra

6

Nabeel Abdul Kareem

7

Richard Wood

8

Mohammed Sadek

20

19

4

4

18

19

2

2

18

CHAPTER 01 LEADING

9

Aman Akram

17

Khalifa Al Qaizi

10

Abdulsalam Al Hammadi

18

Taleb Al Saleh

11

Craig Garbutt

19

Raed Ali Sheikh

12

Sahal Omar

20

Hamad M Al Mazam

13

Fahad Askar

21

Shamma Al Rahmah

14

Farid Badri

22

Husam Salem M Al Shawi

15

Ahmed Al Mulla

23

Yousuf Harib

16

Ashraf Al Hashimi

17

1

17

1

16

16

3

3

15

8

8

15

14

9

9 10

14 13

10

ENERGY & EFFICIENCY 2015

13

11

12

11

12

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Meet the E&RM Technical Committee...

34

33

34

21

Waddah Ghanem

2

Radhakrishnan

3

Alia Busamra

4

Khalifa Al Qaizi

5

Abdulla A Al Hammadi

6

Hamdan Al Doukhi

7

Abeer Belzumool

8

Adel Al Ali

9

Waleed Haidra

10

Gordon Povey

30

33 32

20

1

31

32

19

20

29

30

31

19

18

18 17

17

2

2

21

7

7

6

6

5

5

29

4

4

16

16

CHAPTER 01 LEADING

28

ENERGY & EFFICIENCY 2015

11

Charmaine Mendez

21

Mohammed Iqbal Qureshi

31

K Sachith

12

Owais Ahmed

22

Noel Enriquez

32

Randy Montesclaros

13

Gopalakrishnan Vinod

23

Girish Kumar Kalkund

33

Ahmed Obaid

14

Mazumdar

24

Edmund Presquito

34

Noel Erick Ang

15

Bhaskar Sinha

25

Mark louie P Burling

16

Abi Issac

26

Clayton Rebello

17

S. Ravindran

27

Kasirajan Saravanan

18

Vinoy Skariah

28

Priyalal Liyanage

19

Carlos Tan

29

Aju Thomas

20

Manoj Sukumaran

30

Sathisha Shetty

26

28 27

26

25

27

25

23 24

15

15

14

14

13

24

22

1

3

3

8

22

13 12

1

23

8

9

9

12

10

11

10

11

The ENOC Energy and Resource Management Policy

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

As a responsible corporate citizen, ENOC is committed to utilising energy and resources efficiently. ENOC believes that the optimisation of resources will lead to overall cost reductions and will make operations sustainable in the long run.

Therefore, ENOC has developed a standalone Energy and Resource Management (E&RM) policy to set up the infrastructure for achieving energy and resource management objectives. This was further reinforced by the new directives issued by the Dubai Supreme Council of Energy (DSCE) to all entities to reduce energy consumption by 30% and diversify the energy mix before 2030. Therefore, the ENOC Energy and Resource Management Strategy has also been aligned with the Dubai Integrated Energy Strategy (DIES) 2030.

The development of any management system or policy manual needs to be preceded by a broad policy statement stating the overall intentions of the company’s top management,

in this case “ENOC, being the responsible energy partner of choice, is committed to sustainable development through optimal use of energy and resources by implementing conservation measures throughout the organisation.

To achieve this, ENOC will make available necessary resources and affiliates in turn are encouraged to: Measure, monitor, quantify and analyse energy and resource use and prioritise conservation measures.

Reduce, recover and reuse energy and resources wherever economically viable.

Consider use of renewable energy sources.

Consider life cycle costs when evaluating project options.

Continually improve on their energy and resource use performance.

Provide adequate training to personnel and communicate effectively on energy and resource use policy and conservation measures.

Efficiency in the Books The financial aspects of energy and resource management

ENERGY & EFFICIENCY 2015

Interview Petri Pentti

CHAPTER 01 LEADING

Meeting the challenges in a carbon-aware era, Petri Pentti, Chief Financial Officer of ENOC, outlines ENOC’s commitment to energy efficiency, how business and investment plans help to identify low hanging fruits and financially viable efficiency upgrades.

PETRI PENTTI CHIEF FINANCIAL OFFICER OF ENOC

How is ENOC planning to integrate energy and resource management as a core pillar for future expansion?

P.P.: Resonating with everything we do, sustainability has emerged at the forefront of ENOC’s strategy and operations in recent years. The oil and gas industry is known for being extremely capital intensive and investment projects are implemented with a view to operating assets for decades to come.

It is crucial in today’s operations that these projects meet the toughest criteria for energy efficiency, as this ultimately will be in line with the three pillars of sustainable business: people, planet and profit.

Currently, ENOC requires that every single capital project, including small to mediumsized maintenance projects, be evaluated from an energy savings and efficiency perspective as well. These elements have been incorporated as requirements in our regular reporting, further supported by the necessary governance structures established and guided

by ENOC’s Energy & Resource Management (E&RM) Technical and Steering Committees.

The oil and gas industry is known for being extremely capital intensive, and investment projects are implemented with a view to operating assets for decades to come

26

WHY WHEN HOW MUCH

MEASURE MONITOR ANALYSE BENCHMARK

THE STORY SO FAR

ENERGY & RESOURCES

ENERGY & EFFICIENCY 2015

REUSE IT’S A FACT The International Energy Agency (IEA)’s latest estimates indicate that fossil-fuel consumption subsidies worldwide amounted to $548 billion in 2013, $25 billion down on the previous year, in part due to the drop in international energy prices. Subsidies to oil products represent over half of the total.

Those subsidies were over four-times the value of subsidies to renewable energy and more than four times the amount invested globally in improving energy efficiency. In the UAE the subsidy rate in 2013 was estimated to be 65% of the full costs of supply.

Source: IEA World Energy Outlook (http://www. worldenergyoutlook. org/resources/ energysubsidies/)

ARE USED TO

SAVE REDUCE

RECYCLE

ENOC’s EHSQ strategy cites its aim to use cost-effective methodologies to manage energy and water resources proficiently in partnership with Dubai Supreme Council of Energy.

What are these methods, and how will this be rolled out?

P.P.: In addition to a longer-term strategies, we have introduced the concept of quick wins in our operations to highlight how energy efficiency can be achieved rapidly with minimum effort and maximum rewards. The five-year plan for E&RM projects is an extensive investment blueprint that outlines anticipated savings and a projected payback period. In order to achieve this, all ENOC business units identify where, when, why and how much energy and resources (E&R) are used in all their activities.

The business units also measure, monitor, analyse and benchmark E&R use in all areas of operations in order to determine the savings potential and improvements in working efficiency, while monitoring the company’s overall energy performance index. With an accurate measurement of each business unit’s current resource usage, the next step is to develop comprehensive plans that are then applied, monitored and reviewed to achieve savings and efficiency improvements in areas that have been identified from the initial baseline study. With these figures in hand, we can easily identify potential synergies among all business units in sharing resources to reduce overall costs for the entire group.

An important factor in streamlining E&R usage lies in developing and improving the competencies of all personnel whose work can directly impact potential losses or savings in E&R use and costs. With the right training and diligent operational awareness, we can ensure that all of ENOCs E&R policies, strategies and procedures are aligned with that of the Dubai Executive Council, DSCE and other external regulatory bodies.

Of course, as a measure to guarantee sustained progress in efficient E&RM, ENOC’s business units will also undertake detailed energy reviews for past, present and future usage. This will help establish best practices and set the benchmark upon which we can strive to improve internally and externally.

This strategy for E&RM has been formulated

by ENOC E&RM Steering Committee in line with Dubai Integrated Energy Strategy 2030.

CHAPTER 01 LEADING

How prominently will renewable energy factor in ENOC’s future, and in what capacity?

P.P.: Gauging from the strides we are making in the UAE, renewable energy is likely to play a much bigger role in the future than it does at present. Globally, the primary focus has been on power generation in the form of solar projects, wind farms and the like. However, in order to reduce the nation’s dependence on hydrocarbons, reliance on transportation fuels like gasoline and diesel need to be taken into consideration. The use of biofuels holds a lot of potential, and unlike in many parts of the world, this is yet to pick up pace in the region.

If actual mandates that require a certain percentage of bio-content to be blended in the existing pool of transportation fuels are in place in the UAE, we could realise large carbon emission reductions.

On a positive note, the viability and sustainability of fuel subsidies is increasingly being evaluated in the region. ENOC is carefully monitoring these trends as we have substantial infrastructural capabilities that could be relatively easily leveraged to support any potential biofuel initiatives or mandates that may be enforced. Ultimately, these potential changes and opportunities would yield a real return for ENOC, enforcing our belief in the “triple bottom line”.

What kinds of training programmes are being put into practice for equipping ENOC’s workforce with the necessary knowledge and skills in incorporating resource efficiency?

P.P.: ENOC has developed a framework to enhance the competencies and skills of its employees who have direct responsibilities and accountabilities in the E&RM plan. Based on our research, we have identified 12 areas of competencies for technicians, engineers, managers and executives.

ENOC Group EHSQC holds awareness training, while compliance training introduces employees to the ISO 50001:2011 standard and internal audits by BSI. As a member of the Energy Institute (EI), we have access to EI’s vast source of technical expertise. EI provides technical training, such as energy management for technicians, engineers and managers.

Are there any positive results you can share from 2008 when ENOC began focusing on incorporating best practices in energy and resource management?

P.P.: All ENOC business units have showed marked improvements in their E&RM performance. Some of the business units have reached their targets already, while the rest are close to their goals. With this in mind, we have enhanced our audit targets for our business units to achieve higher standards year on year. We have also brought additional business units on board under the domain of E&RM strategy.

ENERGY & EFFICIENCY 2015

Electricity Conservation

Wastewater Treatment

Waste Segregation & Recycling

The financial impact of our quick-win efforts has been quite encouraging. A meager investment of AED 600,000 has yielded in savings of almost three times that amount.

In terms of business plans, the expected annual savings is US$9.6 million, with a payback period of two short years. We have also included a new KPI, encouraging business units to submit three to five additional projects between 2015 and 2019. These additional projects are expected to net at least 50% additional savings in dirhams, as envisaged above those the original plan submitted in 2013.

The E&RM strategy emphasises ENOC’s vision to be a leading, highly profitable and socially responsible integrated oil and gas group. We recognise that strategically it is not possible to achieve our goal without unwavering commitment to energy efficiency and sustainability that will also excite our core resource –our employees– while addressing the expectations of all of our other stakeholders. This is evident from the way we lead; by setting an example for the industry at large.

This strategy for E&RM has been formulated by ENOC’s E&RM Steering Committee in line with the Dubai Integrated Energy Strategy 2030.

Efficient Lighting

PETRI PENTTI CHIEF FINANCIAL OFFICER Mr. Pentti holds a Master’s degree in Economics and Business Administration from the Turku School of Economics and Business Administration, Finland. He has over 23 years of experience spanning the energy, aviation and metal industry sectors holding various finance positions.

28

By Francisco Vina Brito

Waste Heat Recovery

ENERGY & EFFICIENCY 2015

FRANCISCO VINA BRITO SR. MANAGER TECHNICAL SERVICES Mr. Brito holds a Engineering degree with a MSc in Chemical Engineering and Petroleum Refining. He has 28 years’ experience in petroleum refineries located across the USA and South America.

THE STORY SO FAR

Naphtha hydrotreating is an essential step for refiners to produce cleaner gasoline from different feedstocks. In a naphtha hydrotreating unit, the harmful sulphur species react with hydrogen in the presence of a nickel-molybdenum catalyst, and are converted and removed as hydrogen sulphide.

The naphtha, free of sulphur, is separated into light and heavy fractions: Light naphtha is either blended in local gasoline or exported as a petrochemical component, while the heavy naphtha constitutes the feed to the Naphtha Reformer, where a high octane gasoline component is produced.

The EPCL Naphtha Hydrotreater debottlenecking project was conceived to increase the capacity of the unit. In order to implement this project within a brief shutdown time, it was necessary to find alternatives to supply the additional energy needed by enhancing the internal heat integration without modifying any of the three furnaces of the unit.

Common Stack

In a multi-disciplined team effort, with the EPCL Engineering Department taking the lead role, alternative solutions were sourced and investigated. After considering environmental and commercial factors, it was decided, among other modifications, to recover waste heat from the flue gas outlet of existing furnaces by installing a dedicated waste heat recovery system within the EPCL Naphtha Hydrotreater unit.

In this case, the energy demand saving in terms of natural gas consumption was 0.52 MMscfd (equivalent to 2.7 M AED/y) and from an environmental perspective, existing flue gas temperatures were reduced from 250C to 150C. The waste heat recovery system continues to ensure more efficient energy usage along the lifetime of the naphtha hydrotreating plant.

IT’S A FACT

Stack Damper

WHR 08F-104/105

ID FANS

Naphtha is an ancient, general term that has been used to refer to flammable liquid hydrocarbon mixtures. Derived from Persian, it is used in both Latin and Greek languages and also appears in Arabic as “‫”نَ ْفط‬ naft. Mixtures labelled naphtha have been produced from natural gas condensates, petroleum distillates, and the distillation of coal tar and peat. The term is used differently across industries and regions to refer to gross products like crude oil or refined products such as kerosene.

ENOC has always believed in developing and implementing management systems to control various aspects of its operations in a consistent and uniform manner.

One such aspect is environment, health, safety and quality (EHSQ) management. In order to facilitate the business units to manage their EHSQ activities, ENOC Group EHSQ Compliance Directorate regularly develops and issues manuals and guidelines. Manuals are mandatory for all business units, whereas guidelines are guidance documents that may be used for the improvement of existing systems. The way ENOC embarked on this journey is replicable throughout many other entities regardless of size and sector, so take a closer look at the elements of E&RM Manual Ref (GEHSQ/M/20).

In the year of its development, 2008, no international standards such as ISO 50001 for Energy Management Systems were published yet. In addition, ENOC management firmly believes, both now and then, that:

“…..development and implementation of formal energy and resource management systems is the way to achieve improved energy efficiency and resource conservation in a consistent and sustainable manner.”

(GEHSQ/M20 page 1) As the first and fundamental step, a newly developed E&RM policy sets the goals and provides a framework for conservation, to:

“Measure, monitor, quantify and analyse energy and resource use and prioritise conservation measures.”

(GEHSQ/M20 page 3) Based on this groundwork, the remainder of the manual is aligned with the “PDCA” (Plan-Do-Check-Act) cycle which is the basis of other widely accepted management system standards such as ISO 9001 and ISO 14001.

The four steps of the PDCA cycle were translated into four additional elements to complete the policy.

We formulated a total of 40 expectations, for all five elements, dependent on the importance of the element in an operating business

Blueprint for a Management System

The Step by Step Guide to ENOC’s Energy and Resource Management

ENERGY & EFFICIENCY 2015

By P. Radhakrishnan

CHAPTER 01 LEADING

30

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

4

ELEMENT

3

ELEMENT

2

ELEMENT

1

ELEMENT

ELEMENT

The five elements and objectives of the E&RM manual

5

Energy and Resource Management Policy

Energy and Resource Efficiency Planning

Implementation and Operation

Checking, Monitoring and Improvement

Management Review

To ensure top management leadership and commitment to energy and resource conservation is visible throughout the organisation.

To ensure that systems are in place to objectively determine and prioritise energy and resource conservation initiatives and action plans in conformance with the energy and resource policy.

To ensure that the means necessary to achieve conformance with the energy and resource policy and to achieve the planned objectives and targets are in place and effective.

To ensure that systems for measurement, monitoring and assessment of the energy and resource management system performance are robust, consistent and capable of demonstrating the achievement of objectives and targets and legislative compliance.

To demonstrate top management commitment to continual improvement of energy and resource management systems through periodic review of the effectiveness of the systems.

These objectives are deliberately rather broad, and in order to align the business units to manage energy use in a consistent, systematic and uniform manner, ENOC breaks these elements into specific compliance criteria, our “expectations”:

“Key personnel who can save energy/resources are identified and provided skills, training and encouragement to do so.”

(Expectation 3.3, GEHSQ/M/20)

“Energy, fuel and water-use data are adequately segmented and linked to production/throughput levels for analysis and determining the EPIs.” (Expectation 4.7, GEHSQ/M/20)

CHAPTER 01 LEADING

ENERGY & EFFICIENCY 2015

We formulated a total of 40 expectations, for all five elements, dependent on the importance of the element in an operating business – with most specification given for “implementation and operation”.

To assist with the auditing process, the manual contains a standard checklist as appendix. This checklist consists of a series of questions on each expectation, some assessing the systems in place (“documentation review”) and others assessing the implementation and its effectiveness (“field verification”). Here an example:

For consistency, each expectation requires a system to be in place, which can be

“Expectation 3.5: All personnel are made aware of general energy and resource conservation measures and persons performing tasks involving significant energy/resource consumption are provided specific training on conservation measures and the importance of conformance.“

a written procedure

a consistently applied non-documented procedure and

implementation of the documented or practiced procedure.

Document review: Do training plans for all personnel covering awareness of general energy and resource conservation measures?

Is there a system to identify personnel performing resource intensive tasks/activities?

Do training plans for above personnel include specific conservation measures and importance of conformance?

Field verification:

We expect all business units to keep records to demonstrate compliance with the expectations.

Is there evidence that all personnel are aware of general energy and resource conservation measures?

As the Energy and Resource Management Manual is mandatory, periodic audits are carried out by ENOC Group EHSQ personnel to determine the degree of conformity.

The auditors examine the systems in place to assess the compliance with the expectations as well as the effective implementation of the systems on site. This is where we get out our scoring mechanism. Based on the degree of conformance, a score between 0 and 4 is awarded to each expectation. The target score for each expectation is 3, scores of less than 3 require corrective actions to be mutually agreed by auditor and auditee and implemented.

Are personnel performing resource intensive activities effectively identified (eg. area wise fuel, water, electricity use)?

Are above personnel provided specific training on conservation and importance of conformance to procedures?”

Audit results might require corrective actions, upon which the audit process is repeated and new scores are awarded to continue the improvement cycle step by step, year by year, towards more efficient operations.

P. RADHAKRISHNAN CHIEF EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Mr. Radhakrishnan has a BTech and MS degree in Chemical Engineering. He has over 30 years’ experience spanning areas such as research and development, operations, QHSE and energy in manufacturing, chemical, petroleum and power industries.

Based on the degree of conformance, a score between 0 and 4 is awarded to each expectation. The target score for each expectation is 3

IT’S A FACT ISO 50001 is based on the management system model of continual improvement also used for other well-known standards such as ISO 9001 or ISO 14001 and was first released in 2011. It helps organisations to integrate energy management into their overall efforts to improve quality and environmental management, by providing guidance on policy development, target and objective setting, Using data to better understand and make decisions about energy use and much more. ENOC’s E&RM management system is aligned and certified to ISO 50001 standards.

32

THE STORY SO FAR

Outside its core business, ENOC upgrades its office buildings to maximise energy and water savings

By Khalifa Al Qaizi

The Building Blocks of Efficient Buildings

ENERGY & EFFICIENCY 2015

KHALIFA AL QAIZI

The ENOC Group is in the process of applying to earn the LEED certification

SENIOR MANAGER ADMIN SERVICES & FACILITIES Mr. Al Qaizi holds a Master’s Degree in Business Administration. He joined ENOC in 1993 and has over 22 years’ experience in areas including retail, marketing, brands and properties. His primary interests are energy conservation, Government liaison, management projects, and challenging projects which require creativity.

The ENOC Group has been committed to the establishment of energy management policies and is striving to achieve self-set sustainability goals. Following the philosophy of investing now secures the future of the next generation; ENOC has taken steps towards the fulfillment of their goals in the form of various initiatives, amongst them investment in the sustainability and efficiency optimisation of their facilities.

CHAPTER 01 LEADING

The accomplishments of ENOC’s determination are truly exhibited in the forecasted savings. During the procurement of the sustainable equipment, the suppliers estimated that the organisation would be able to save about 6% of energy; however, the organisation defied this projection and managed to attain savings of 11%, which is almost double the initial estimates. Overall, the annual savings attained were AED 381,134 for the year 2014. In light of this success, AS&F aims for savings of about AED 377,000 (10%) for the year 2015. The leadership role that ENOC has taken towards becoming a more socially aware, sustainable organisation is the epitome of inspiration. ENOC will persist along its path concerning sustainability, energy management and building efficiency. The group’s continuous improvement plan ensures constant research into the latest technological advances, systems’ fine tuning for maximum optmisation, staff education and awareness building, participation in building efficiency forums and coordination with DEWA to seek better efficiency solutions.

THE ANNUAL SAVING

THAT ENOC ATTAINED

were

Building efficiency is one of the prominent E&RM tasks that an organisation should meticulously plan. Admin Services & Facilities Management (AS&FM) in ENOC has taken extensive measures to guarantee the maximum optimisation of their buildings’ efficiency. A Building Management System (BMS) was purchased and installed to provide centralised control of ENOC’s buildings and fine-tune their energy consumption during operational and non-operational hours. Similarly, advanced technology for energy conservation has been installed in buildings such as, but not limited to, motion sensors. This was coupled with the switch of all regular light bulbs to Light Emitting Diodes (LED) light bulbs to reduce energy loss due to lighting. Moreover, the AS&FM has managed to reduce environmental impacts by disposing of waste in a recyclable manner and recycling the byproduct condensate water from air conditioners for irrigation purposes.

ENOC’s long-term vision for the continual improvement of their buildings’ efficiency includes upgrading old chillers to sustainable ones, refurbishing all the washrooms to have waterless urinals and sensor-activated taps, and installing smart meters and solar photovoltaic panels on the shades of parking spaces to make use of a reusable energy sources. Furthermore, to consolidate the diligence put towards energy management and building efficiency, the AS&FM is in the process of applying for LEED certification for ENOC buildings.

ENERGY & EFFICIENCY 2015

AED 381,134

for the year of

2

0

1

4

I N L I G H T O F T H I S S U C C E S S, ADMIN SERVICES & FACILITIES MANAGEMENT

(AS&FM) AIMS FOR SAVINGS OF ABOUT AED

AED

AED

AED

AED

AED 377,000

AED

AED

(10%) for the year

2

34

0

1

5

TERMINAL MANAGER HDTL Mr. Houmed Abass began his engineering career in 1996 with Djibouti Power Supply. He brought his considerable experience to HDTL in 2006.

HDTL’s policy is to ensure that their facilities are secure, safe, reliable, and efficient; that utility commodities are procured effectively and efficiently; and that energy and water conservation efforts in the different production process are maximised. set, requiring an efficiency overhaul of the terminal’s facilities.

From the key energy performance indicators assessed for each process a plan was developed, with energy management tasks assigned as additional duties to the Terminal Manager and all terminal staff involved in performing specific conservation tasks.

The E&RM Management Team, comprising HDTL management, is organising Energy Management Team monthly meetings to prepare energy use and contingency plans.

Energy and water conservation delivers financial savings, improvements in facilities, reduced pollutant emissions at the source, improved energy reliability resulting from improved operating efficiency, and in some cases it can increase productivity.

Along with successful energy reductions to date, HDTL has been striving towards further energy efficiencies and reductions in consumption to meet the goals of providing reliable and cost-effective services to customers and complying with environmental protection terminal policies. To this end, the terminal assessed and identified different opportunities for energy savings that would not jeopardise operational performance.

The terminal produced a five-year plan of energy consumption by reviewing and monitoring the different areas’ energy usage trends. In 2014, the terminal had an annual throughput of 4,030,794.8 M3 which is 11 times the terminal capacity turnover. Total annual electricity consumption was 2,594,484 Kwh and the average terminal specific energy consumption was 0.66 Kwh/m3.

This baseline energy assessment is to be compared with the energy performance of similar facilities or with an established level of performance. The baseline assessment will be reviewed periodically, every one to two years. The assessment identified the largest energy users and the best opportunities for reduction and an energy saving target was

Overall, the project is estimated to save HDTL over USD 280,000 annually – approximately 21.6% of the company’s typical energy bill.

The project also serves to improve the quality of life in the terminal facilities and minimise the activities impacting on the surrounding environment, both urban and natural.

150 light fixtures retrofitted

2,594,484 Kwh

Horizon Djibouti Terminals Limited (HDTL)

The energy saving project applied energy efficient improvements to most facility processes across HDTL. The most notable changes include the retrofitting of over 150 light fixtures with energy efficient LED lighting technology, the replacement of the pumps delta start panel by VSD with the integration of a terminal Energy Management System (EnMS).

total annual electricity consumption

ABDOULKADER HOUMED ABASS

THE STORY SO FAR

0.66 Kwh/m

280,000

USD

By Abdoulkader Houmed Abass

Illuminating Savings

ENERGY & EFFICIENCY 2015

annual savings

average terminal specific energy consumption

3

ENOC is a key player in Dubai’s energy sector and has been a dynamic delivery partner for the Dubai Supreme Council of Energy (DSCE) in securing transportation fuel supply for the growing energy demands of Dubai and the UAE. As a strategic partner in driving the Dubai Green Growth Strategy, the Carbon Abatement Strategy and demand reduction measures, ENOC is represented on various committees and work groups, such as the Carbon Abatement Strategy (CAS) Committee, the Demand Side Management Executive Committee and the HSE Committee.

Eng. Waleed Salman, Chairman of Dubai Carbon Over the past four years of operation, Dubai Carbon has grown into a fundamental catalyst in Dubai’s transition to a low-carbon economy.

The team has supported informed decisionmaking through local and national greenhouse gas inventories and sector specific analysis, such as the Sate of Action Plan for aviation.

In addition, the experts provided advice on strategy development for emission reduction programmes for its shareholders (DEWA, Dubal and ENOC) and public and contracted private-sector entities (Expo 2020, Emirates Transport, Du, Dubai Police and more). This success would not have been possible without forward-thinking and unconditional support from shareholders, namely DEWA, Dubal Holding, Empower and ENOC, to open doors, advocate and provide expertise and data. A big thank you to H.E. Saif Al Falasi for his vision and Eng. Waddah Ghanem for his valuable contribution to the centre’s work.

ENOC has been, and continues to be, involved in various work activities including demand side management, supply side management and transport fuel abatement strategic committees. Besides ENOC’s involvement at the DSCE Board level, ENOC plays an active role in steering the energy supply strategy of Dubai towards compliance with the aspirations of the Dubai Integrated Energy Strategy (DIES) 2030 through strategy alignment processes.

As an example, through involvement in the council, ENOC initiated a regulatory framework to control the illicit dealing of diesel and other refined products in the Emirate of Dubai in 2013. In support of DIES 2030, ENOC was also the first to introduce low sulphur diesel to the market as one of the clean fuel initiatives, along with the supply of formulated green lubricants and Compressed Natural Gas (CNG).

The collaboration does not stop there.

ENOC and the DSCE have also pursued more creative approaches, such as founding the Dubai Carbon Centre of Excellence (DCCE PJSC), or Dubai Carbon, a think thank and advisory on low-carbon initiatives, which works with local and federal government entities.

ENOC initiated a regulatory framework to control the illicit dealing of diesel and other refined products in the Emirate of Dubai in 2013

Engaged on All Levels

How integrated cooperation with the Dubai Supreme Council of Energy informs corporate energy and resource management and vice versa

ENERGY & EFFICIENCY 2015

By Waddah S. Ghanem Al Hashemi

CHAPTER 01 LEADING

IT’S A FACT Since 2013, ENOC has been a member of the Green Economy Partnership along with many other highly engaged entities in Dubai. It is the first multi-stakeholder and cross-sectorial partnership to promote the transition to a green and low-carbon economy in the Middle East. The programmes and initiatives aim to enable the growth of green trade and investment and accelerate the adoption of green technologies, products and services across regional and global markets. Find out more about current activities or join the partnership through www.greeneconomy.ae.

36

Interview H.E. Ahmed Al Muhairbi

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Getting our ducks in a row The integrated approach to an efficient energy sector in the Emirate of Dubai.

His Excellency Ahmed Al Muhairbi is the Secretary General of the Dubai Supreme Council of Energy, the active, multi-stakeholder legislator of the energy sector in Dubai. Here he outlines the priorities of the Dubai government and ENOC’s role within the framework.

Dubai Supreme Council of Energy (DSCE) is a governance body representing major stakeholders in the energy sector. How do you manage to achieve solutions that align with different needs and demands?

H.E. A.M.: Dubai Supreme Council of Energy was established by Law 19 (of 2009) as a governing body tasked with policy development and setting strategic direction for the energy sector to deliver the following objectives: Supply energy to sustain Dubai’s growth and development Diversify energy sources by introducing other fuel sources such as solar Reduce demand through the rationalised use of electricity and water through abatement programmes Streamline the functions of the energy sector to ensure successful delivery of the DIES 2030 mandates Each entity has its own strategy in terms of sustainability and green initiatives, however, through the Dubai Integrated Energy Strategy and Dubai Integrated Gas Strategy 2030, the DSCE has a board meeting on a bi-monthly basis attended by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DSCE, as well as the Vice Chairman, Secretary General and Board Members, to discuss and review strategy progress and ensure alignment.

CHAPTER 01 LEADING

What were the key achievements of the Supreme Council in 2014 and what do you personally foresee for 2015?

H.E. A.M.: In terms of the energy demand side, the DSCE implemented a demand reduction plan to meet the future energy requirements of Dubai and diversify its energy mix: Implemented the demand side management strategy through eight programmes and 24 initiatives Identified execution mechanisms including policies, regulations and budget allocation as per the roadmap of 2030 Established some of the first strategic initiatives in the Middle East, such as Etihad ESCO (an energy service company that aims to develop energy efficiency projects and make Dubai’s built environment a leading example of energy efficiency in the region and the world), retrofitting 30,000 buildings for efficient energy management in Dubai by 2030 In terms of the energy supply side, DSCE deployed the second phase of the solar-power plan in Dubai by adding another 200MW of solar PV through public-private partnership,

which will increase the solar capacity in Dubai’s overall fuel mix strategy to 7% by 2020 and 15% by 2030. This is considered a global achievement in terms of the timeline to act on solar penetration and it provides a new benchmark for the lowest cost of energy produced from solar.

ENERGY & EFFICIENCY 2015

H.E. AHMED AL MUHAIRBI SECRETARY GENERAL OF THE DUBAI SUPREME COUNCIL OF ENERGY (DSCE)

DSCE also developed a long-term gas strategy with a defined roadmap for measures to increase gas supply and balance demand in line with market conditions.

In 2015, DSCE plans to complete a review of DIES 2030, which was introduced in 2011, with a view to re-evaluating the initial assumptions concerning the programmes executed, the development of technology, the cost of some of the fuel sources and market dynamics influencing specific elements of the strategy. DSCE believes it has managed to execute successful programmes with tangible results in the last four years and therefore the organisation is in a position to review the milestones and re-set the roadmap accordingly for the years to come.

DSCE deployed the second phase of the solar-power plan in Dubai by adding another 200MW of solar PV through public-private partnership

38

ENERGY & EFFICIENCY 2015

ENOC is a key player in Dubai’s energy sector and has been a dynamic driver in securing transportation fuel supply and coping with growth demand during the infrastructure boom

H.E. AHMED AL MUHAIRBI SECRETARY GENERAL OF THE DUBAI SUPREME COUNCIL OF ENERGY (DSCE) His Excellency serves as the Secretary General since his appointment in November 2012 through a resolution issued

by His Highness Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of Dubai Executive Council.

THE STORY SO FAR

The Supreme Council of Energy ensures the supply of energy by organising the rights and duties of energy-service providers.

How do legislative regulatory environment changes affect the energy business?

H.E. A.M.: At DSCE we are aware of the importance of establishing a clear, stable and transparent regulatory environment that sends the right signal to investors and attracts them to the growing energy market of Dubai. Therefore, the Regulatory and Supervisory Bureau (RSB) for the electricity and water sector of Dubai was established in 2010 to implement appropriate regulatory frameworks and approaches for Dubai’s energy sector. Part of the responsibilities include licensing new players in the power sector, such as Independent Power Producers (IPPs). Now, the RSB is also involved in accrediting energy-service companies (ESCOs) to drive the energy efficiency market in Dubai.

In addition, DSCE entities have contributed widely to improved energy efficiency and have integrated specific demand reduction and sustainability goals into their business plans.

Some of the entities have taken a further step and developed energy-management systems in line with the requirements of ISO 50001 to enhance operational efficiencies.

IT’S A FACT The Dubai Supreme Council of Energy is responsible for ensuring the supply of energy to the Emirate of Dubai, overseeing the effective planning, enhancing the cost-effectiveness and quality of the services provided, rationalising the use of energy and ensuring environmental sustainability of the energy sector. Member organisations of the council include Dubai Electricity and Water Authority (DEWA), Dubai Aluminium Company Ltd. (DUBAL), Emirates National Oil Company (ENOC), Dubai Supply Authority (DUSUP), Dubai Petroleum Corporation, Dubai Nuclear Energy Committee and Dubai Municipality (DM).

Could you provide an example of direct cooperation between DSCE and ENOC or the implementation of DSCE decisions through ENOC? H.E. A.M.: ENOC is a key player in Dubai’s energy sector and has been a dynamic driver in securing transportation fuel supply and coping with growth demand during the infrastructure boom. ENOC, as a downstream company, operates refineries, supplies a wide range of petroleum products and manages retail outlets and terminals locally and regionally. ENOC is also a strategic partner in driving the Dubai green-growth strategy, carbon-abatement strategy and demand-reduction measures.

It is worth mentioning that ENOC initiated the proposed regulatory framework two years ago to control the illicit dealing of diesel and other refined products in the Emirate of Dubai.

To regulate trading at a national level, the Ministry of Energy adopted the draft law and engaged various stakeholders in the UAE to seek alignment. This reflects ENOC’s dynamic role in the local market and its corporate social responsibility towards environmental stewardship and consumer protection.

How do you see fuel retailing contributing to the DSCE vision for the Emirate?

H.E. A.M.: Dubai has experienced phenomenal growth in the last 15 years and has become a global hub for tourism, trade and services.

The growth in demand was successfully met

by ENOC’s prudent strategy in powering the transportation sector and DSCE considers their contribution as a pillar in Dubai’s vision for sustainability in energy and a green economy.

PLANNING

THE BUSINESS PLAN MODEL, COMPETENCY MATRIX, STAKEHOLDER MANAGEMENT, ETC.

By Shamma Al Rahmah

The Challenge of Creating Accountability

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Business Plans and Balanced Scorecards for Good Today’s businesses are struggling to face new challenges for growth, improve operational efficiency, reduce the cost of energy, and provide a structure for timely decision-making. Perhaps the most pressing of these issues is the need to reduce the energy intensity of our businesses and better manage resources and costs.

The competitiveness of the organisation will be limited if it does not take into account the volatile situation of the energy market.

It is therefore imperative that energy and resource management is made an integral part of any organisation’s strategy.

ENOC has identified the “Balanced Scorecard” methodology as the chosen methodology for deploying its strategic direction, communicating expectations, and measuring progress towards an agreed set of objectives.

In accordance with this framework, ENOC has taken energy and resource management to the highest level.

This commitment has been reflected by including energy and resource management into the Balanced Scorecards of both ENOC’s top-level sections and the respective business units. Adopting this approach helps in fostering a culture in which accountability is welcomed and viewed as a tool to enhance performance across the board.

E&RM KPIs for 2014

1

2

KPI 1: E nergy conservation business plan

KPI 2: E &RM system implementation and E&R related activities

1. Submission of quarterly targets and implementation plan for 2014.

Quarterly monitoring and reporting achievement against the same for Q1, Q2, Q3 and Q4. The monitoring shall be by measurement or only in the case of lighting by calculation

1. Attendance at scheduled meetings

2. Submission of 3-5 additional projects for 2015 -2019. The additional projects shall net at least 50% additional savings in AED as envisaged in the original plan submitted in 2013

Both the deliverables shall have equal weightage

2. Data submittals 3. Training plan submittal by Q1 and adherence to the training plan 4. E&R MS corrective action plan submittal and assessment of implementation during the year

CHAPTER 02 PLANNING

In 2014, the business units were asked to submit three to five additional projects for 2015 to 2019. The additional projects are expected to add at least 50% additional savings in AED to the original plans submitted in 2013. The same principle in terms of quarterly monitoring and achievement is also applied here.

The submission of the E&RM Business Plan consists of two stages, in which the first stage is review and the second is approval. At the review stage, the Group EHSQ Compliance Directorate sets criteria and requirements for the business plan, and the business unit prepares and submits its plan to the Group EHSQ Compliance Directorate according to the set criteria to validate the plan and issue comments. The business units’ heads ensure that all required amendments by the Group EHSQ Compliance Directorate are made and final approval for incorporation into the annual budget is made.

At the approval stage, the Business Unit re-submits the plan to the Group EHSQ Compliance Directorate after making the necessary amendments and the Group EHSQ Compliance Directorate checks the plan to ensure that all amendments have been incorporated. After the plan is cleared by the Group EHSQ Compliance Directorate, the Business Plan is endorsed by the business unit’s finance section and the General Manager, before being implemented by the business unit.

Set criteria and requirements for Business Plan

Group EHSQ Compliance

Preparation and submission of Business Plan to Group EHSQC

Business Unit

Validation

Group EHSQ Compliance

REVIEW STAGE

Quarterly targets and implementation plans were submitted by the business units to the Group EHSQ Compliance Directorate to track performance. Quarterly monitoring and achievement reporting against the same was made by the Group EHSQ Compliance Directorate and reported to the ENOC Performance Management Team.

Process Flow Diagram for Submission of E&RM Business Plan

Comments issued Amendments to be made if needed, then final approval for incorporation into annual budget

Business Unit Head

Submission and Re-check

Group EHSQ Compliance

Endorsement

BU Finance and GM of the BU

Set criteria and requirements for Business Plan

APPROVAL STAGE

In 2013, ENOC asked its business units to submit a comprehensive five-year plan (2014-2018) for their E&RM programmes to achieve optimum use of energy and resources. A business plan format was provided to all business units to formulate their investment and anticipated savings to determine an appropriate payback period. The detailed project report for each project was designed to explain methods of monitoring and measurement before, during and after implementation, so that savings accrued could be verified and validated. Only in the case of lighting, could the measurement be done by pure calculation.

ENERGY & EFFICIENCY 2015

BU

SHAMMA AL RAHMAH MANAGER - BUSINESS PLANNING & PERFORMANCE MANAGEMENT Ms. Al Rahmah has an MBA from the University of Bradford, UK. She is a certified EFQM Assessor and a member of the Middle East Leadership Academy.

Her responsibilities include leading corporate strategy, portfolio management, business planning and budgeting, performance management and management reporting for ENOC.

IT’S A FACT The Balanced Scorecard approach is a strategic planning and management system which originated in the Harvard Business School as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more ‘balanced’ view of organisational performance.

42

THE STORY SO FAR

Investment in the most precious resource: our colleagues ENOC, being a company operating in the high risk oil and gas sector, has always considered competent employees as a key tool in risk management.

ENOC believes in promoting a structured approach to any undertaking, including training and competency.

1. Business unit specific competencies (operational issues) 2. General EHS competencies 3. Fire protection and safety 4. Environment 5. Occupational health 6. Marine 7. Support competencies Under the environmental competencies, energy and resource management was included as competency no. 4.7 and definitions of the levels within this competency were provided.

Level

The competency requirements covered all areas of EHS as follows:

Awareness: Can describe in basic terms a sound understanding and good knowledge of what is involved.

Level

The required competency levels for each of the key players, such as technician and engineer, were determined through discussions with business unit members in the technical committee

“Employees shall receive necessary training to provide the skills for accomplishing their assigned roles and responsibilities. Systems and programmes that support this element include employee selection, identification of employee training and development needs, employee orientation, required regulatory training, development and maintenance of training resources, and demonstration of proficiency.”

The ENOC competency framework consists of a matrix with levels running horizontally and competencies running vertically. The cells within this matrix are populated with the requirements or definitions to achieve a certain level of a competency. The levels run from 1 to 4 with increasing competencies required for higher levels:

Knowledge: Awareness PLUS able to interpret and evaluate information and advice from experts.

Level

The structured approach dictated that a manual be developed for ensuring competency. Hence, in 2011, the manual “EHS Competency Framework” GEHSQ/M/08 was developed with the following broad aim:

Skill: Knowledge PLUS able to carry out consistently the activities to the required standard.

Level

From Awareness to Mastery

ENERGY & EFFICIENCY 2015

Mastery: Skill PLUS able to diagnose and resolve significant, unusual problems and to successfully adopt.

CHAPTER 02 PLANNING

ENERGY & EFFICIENCY 2015

The EHS competency framework defined in GEHSQ/M/08 has the following definitions for the different levels: Awareness: Understand the relationship of ENOC E&R MS to EHSMS Understand GEHSQ/M/20 standard Understand the importance of efficiency improvements Understand clauses in operating procedures for efficient operations and the importance in complying with the same Knowledge: Describe the GEHSQ/M/20 requirements Actively monitor compliance with system requirements Explain the efficiency improvement methods Ability to set efficiency parameters in operational procedures Ability to spot reductions in efficiency and recommend actions

These requirements are essential for developing and implementing an energy management system, but they are nowhere near sufficient in initiating and implementing conservation measures, which is the ultimate goal. Hence a separate competency matrix was developed for key personnel that would plan, design and implement energy management and conservation projects.

The key personnel involved were categorised as: Energy Technician, Energy Engineer, Energy Manger and Energy Executive. The basic job description (in addition to whatever other jobs he/she may have in the organisation) and the preferred qualifications are provided below. Some degree of overlap between these functions can occur.

Profiles of Key Personnel

Monitor other ENOC groups for E&R MS compliance

Energy Technician (Operators): the energy technician is an operations or maintenance person in the organisation, who has been provided adequate training to achieve the required competencies set out in the competency matrix. In addition to routine jobs in maintenance, utilities or operations, he/she is expected to ensure that plant and equipment are operated/ maintained at optimum levels and efficiencies are not compromised. In order to do this, he/she is expected to implement work instructions and procedures issued for achieving optimum operating conditions. He/She is also responsible for reporting any deviations in instructions, procedures and/or operating conditions to seniors for taking corrective actions.

Assist in filling E&R MS gaps

Basic qualifications and experience:

Skills: Develop and implement an E&R MS in the organisation Continuous development toward compliance to GEHSQ/M/20 standard

Understand the relationship between efficiency and productivity

Preferably a diploma holder in electrical, mechanical or chemical engineering.

Analyse consumption data for efficiency trends

Three years’ experience in operations or maintenance in a manufacturing plant or utility.

Identify and recommend conservation measures and technology

Some experience in installation and/or commissioning of energy and resource use intensive equipment is preferred.

Mastery: Assess E&R MS & make improvements where possible Advise senior management as to effectiveness Develop group level E&R MS requirements Develop operational philosophy for efficiency improvements Assess new and emerging technologies in renewable energy and efficiency improvements Advise on new projects

Adequate understanding of English to understand operating and maintenance manuals of equipment and procedures and work instructions.

Energy Engineer (Designers/Reviewers): the energy engineer is primarily a hands-on operational or maintenance position. He/She is expected to study the operations, processes and maintenance operations and identify areas where savings in energy and resource-use can be achieved. He/She will do this by measuring, monitoring, data acquisition and analysis and comparison with benchmarks and norms. He/She is also responsible for setting operational criteria for E&R use efficiency, developing targeted maintenance programmes to ensure continuing efficiency of plant and equipment and training technicians and operators in energy efficiency and efficient operations.

44

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Basic qualifications and experience: Preferably a degree in chemical, mechanical, electrical or industrial engineering.

Capacity Building and Competency Assurance

Five years’ experience in the manufacturing or utility industries in an operational role such as process engineer, maintenance engineer, technical engineer etc.

Some experience in design, installation and commissioning of energy intensive equipment or projects for energy and resource conservation.

One year’s experience in implementing and/or auditing management system standards such as ISO 14001and/or ISO 50001.

COMPETENCY

Energy & resource management system standards General electricity conservation

Energy Manager (Executers): the energy manager is the key person within the organisation for energy and resource performance improvement activities. He/She is the leader within the organisation in spearheading and directing all improvement activities. He/She is expected to advise top management on policy, objectives and targets and resources required for implementing improvement projects. He/She is responsible for monitoring progress, auditing systems and reporting results to top management while advising on the way forward.

Air conditioning & refrigeration Pumps, compressors & motors Heating & combustion efficiencies

Basic qualifications and experience: Degree in chemical, mechanical, electrical or industrial engineering Post graduate degree in the above or an MBA preferred

Lighting

Ten years’ post degree experience in a manufacturing or utility plant

Renewable energy

Two years’ experience as head of any technical department such as operations, maintenance, process, utilities etc.

Management system auditing

Lead auditor for ISO 14001 and/or ISO 50001 Energy Executive (Policy Setters): the energy executive is a member of the top management of the organisation. He/She is expected to set the policies, review and approve objectives and targets and make resources available for developing and implementing a robust E&R management system. He/She is also expected to provide leadership and motivate personnel throughout the organisation to improve E&R use performance. He/She is expected to regularly communicate the benefits of E&R conservation within and outside the organisation.

Management system standards Energy & resource use monitoring & analysis Energy & resource use auditing

Basic qualifications and experience:

Significant energy & resource use

Degree with post-graduate qualifications preferred Ten years’ experience in manufacturing or utility company Two years’ experience as a plant or unit manager Excellent leadership and communication skills Once the key players in energy management and conservation were identified, competencies and the definition of each level needed to be developed. Following several internal and external discussions and much research, 12 competencies were identified.

Technician

Engineer

Manager

Executive

After the competencies were identified, the definitions for each competency for a particular level were developed and the energy competency framework matrix developed.

IT’S A FACT “Training and Competency” was recognised as element no. 11 in the “EHS Principle Manual” GEHSQ/M/01 “to ensure that personnel are competent to perform their work duties and meet EHS roles and responsibilities.

Example of Competency Definition COMPETENCY RENEWABLE ENERGY

LIGHTING

Level 1

• General understanding • List the main types of of different lighting and their relative efficiencies • Understand policies related to conservation in lighting

renewable energy that can be used • List RE projects implemented or under implementation

Level 2

• Describe different types • Develop operations of lighting and their relative efficiencies • Conduct lighting level surveys and assessments • Describe different types of installed controls and their purpose

and procedures for RE plants • Conduct measurement, monitoring and analysis of outputs

Level 3

• Evaluate energy impact • Perform cost benefit of proposed and existing systems • Perform LCA for lighting systems improvement • Design control systems

and LCA for proposed RE plans • Identify potential areas for use of RE • Design

• Design complete lighting • Track and evaluate Level 4

systems for efficiency

• Track and evaluate

emerging technology in lighting and controls

new trends in RE technology • Compare and select the optimum type of RE technology • Provide training and mentoring on use of RE

The required competency levels for each of the key players, such as technicians and engineers, were determined through discussions with business unit members in the Technical Committee. Once the requirements were finalised the competency matrix was developed.

COMPETENCY

Technician Engineer Manager Executive

Example of Competency Matrix

Energy & Resource Management System Standards

1 2 4 2

General Electricity Conservation

2 3 4 2

Air Conditioning and Refrigeration

2 4 3 2

Pumps, Compressors and Motors

2 4 3 2

In 2007, ENOC launched its EHSQ portal to be used as a tool for the business units to access all information related to EHSQ. Energy and Resource Management (E&RM) was integrated into this portal in 2012 to spread all available information on E&RM strategies, policies, regulations, directives, and initiatives in an attempt to proliferate employee awareness about these principles. Information typically found on the portal is related to the areas of the ENOC E&RM Steering and Technical Committees’ charters, E&RM related standards and regulations, the business units’ E&RM initiatives and business plans, E&RM training material, and suppliers’ presentations and materials on various E&RM technologies and products. However, the portal is not only intended to assist employees to practice E&RM principles in their respective work environments, but also in their personal lives. The portal aims to increase efficiency of E&RM in ENOC by simulating a platform that provides swift information exchange among the many business units and operating facilities situated at different geographical locations.

Virtually, transparency levels are improved throughout the ENOC Group as the portal reduces the time and increases the ease of obtaining project information without routing the query through the corporate office and thereby stimulates further E&RM initiatives.

STATING& ENERGY ENOC EFFICIENCY 2015

One-Stop Online Shop

CHAPTER 02 PLANNING

The ENOC GEHS Compliance Directorate also enables personnel to acquire the required competencies through organising, and sometimes conducting, training programmes.

Over 50 in-house energy awareness training programmes were held for ENOC employees.

External agencies, such as the Energy Institute and BSI are assisting in building and expanding existing competencies through further training.

Trainings 1

(Awareness): Energy Awareness training by Group EHSQC

2

(Compliance): Introduction to ISO 50001:2011 standard and Internal Audit by BSI

3

(Technical): Energy Management for Technicians and for Engineers/Managers by EI

46

THE STORY SO FAR

The Energy Institute (EI) is a 100-yearold professional membership body for the energy industry established in the UK. The EI aims to develop knowledge to improve the understanding of energy, deliver skills needed, and to drive up standards while promoting good practice in the energy industry. It has 20,000 individual members and 300 company members, across 100 countries. In an effort to branch out through the world and disseminate knowledge, skills and good practice, the EI Middle East was incepted and has a chapter based in Dubai.

Through the Dubai Branch, EI engages with entities in the region, amongst them ENOC, since 2012. The affiliation of the EI with ENOC is driven by the common factor of recognising the significance of energy efficiency, resources preservation, and the spread of cutting-edge knowledge and practices in the energy industry. Based on these common goals, EI awarded Saif Al Falasi, CEO of ENOC, an ‘Eminent Fellowship’ for his consistent contribution towards supporting green initiatives in the organisation and his commitment to promoting safety in the workplace.

By Maria Blakely

British Industry Experts for the Gulf

ENERGY & EFFICIENCY 2015

In practical terms, the EI assists ENOC with training as well as the implementation of the ENOC Energy and Resource Management (E&RM) Strategy and Framework. This effort focused on the overall optimisation of E&RM and incorporating sustainability practices into the way ENOC conducts business.

The strategy enhanced ENOC’s initiatives towards sustainability and acknowledgment of corporate social responsibilities. The EI provided training based on the ‘Certificate of Energy Management Essentials’, a five-day course, to a multitude of ENOC employees, reinforcing E&RM knowledge, standards, applications, procedures, and policies.

The training consisted of three courses to nearly 60 of ENOC employees from various corporate levels: Managers, Engineers, and Technicians. As an added benefit for all training participants, the EI provided Affiliate Membership, which provides access to a continuous professional development programme. This further development will take place beyond training in the form of access to energy related magazines and invitations to technical and networking events hosted by the institute, promoting members’ connection, engagement, and growth.

20,000

300

individual members

company members

100 countries

EI awarded Saif Al Falasi, the CEO of ENOC, an ‘Eminent Fellowship’

IT’S A FACT

MARIA BLAKELY MANAGING DIRECTOR, ENERGY INSTITUTE, MIDDLE EAST

Louise Kingham, CEO of the Energy Institute, has an OBE from the EI’s patron Queen Elizabeth II for ‘services to the energy industry’.

ENOC’s energy and resource management training sessions are known for being intensive; including a highly vigorous assessment procedure and project work, which makes having successfully completing these sessions a career milestone for everyone in attendance.

Being part of the ENOC Group Engineering & Project Management team, my involvement is mainly in the engineering and construction of hydrocarbon downstream projects. My role has a specific focus on petroleum storage and handling facilities, marine and truck loading facilities, lube oil blending facilities, cross country pipelines for product transfers, LPG Handling facilities and other related engineering projects.

The agenda

This is why a particularly memorable training programme I attended recently, the ‘Energy Management for Engineers’ course, was comprehensive in addressing both the business case and technical aspects of efficient energy management.

The second part of the programme, four months later touched on the following topics: process heat, ventilation and air conditioning, fans and pumps, motors and drives, controls and other technical subjects.

The course presented the concept of energy auditing and the main principles of energy management including various general compliance requirements and best practices that need to be followed. The programme also delved deeper into technicalities, such as the specific areas where energy savings can be achieved in our operations, and how to accomplish the same.

This training programme was split into two sessions of five days each – the first part in October 2013 and the second in February 2014, held at ENOC House 1 in Dubai.

The topics covered during the first session included energy origins, energy management information, compressed air, refrigeration, energy audits and energy management standards.

The training sessions were conducted by professionals from the Energy Institute (EI), who were extremely knowledgeable and committed to motivate participants to begin evaluating the business-as-usual situation, and current infrastructure from an energy-saving perspective.

By examining the current scenario in relation to energy efficiency, the training programme equipped us to develop strategic energy efficiency initiatives in a structured way.

Career Milestones

On how to become certified in Energy Management for Engineers

ENERGY & EFFICIENCY 2015

By Mahesh Mankuzhy

CHAPTER 02 PLANNING

MAHESH MANKUZHY PROJECT MANAGER Mr. Mankuzhy has a degree in Mechanical Engineering and over 28 years’ experience in the oil and gas industry. He completed the Energy Managers Course from the Energy Institute, UK and is an associate member of the Institute of Engineers, India.

48

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Practical sessions helped put everything we had learned into perspective.

Separated into groups, we were required to carry out energy audits of an exemplary facility within the ENOC group, and come up with recommendations for achieving energy savings (by quantifying expected savings to help management decide the way forward).

On the successful completion of this report and clearing the assessment test conducted during the second session of the training, the Energy Institute provided us with a certificate, while particularly successful individuals were provided with membership of the institute.

In the work environment and beyond This training programme was specifically helpful in furthering knowledge leading to the efficient selection of equipment and design at the planning stage itself, which could cut down on waste and improve energy efficiency.

The training also provided innovative methods for measuring and monitoring energy consumption, which is essential for audits and in assessing performance and the overall health of the system.

Some of the energy saving initiatives being considered, where possible, include variable frequency drives for major pumps, LED lights for street lighting, recycling of water to reduce water consumption, vapour recovery units to recover hydrocarbon, certified energy efficient refrigeration systems and more.

IT’S A FACT The EI is the leading chartered professional membership body for the energy industry, supporting over 20,000 individuals working in or studying energy and 250 companies worldwide.

A registered charity, the EI provides learning and networking opportunities to support professional development, as well as professional recognition and technical and scientific knowledge resources on energy in all its forms and applications.

In addition to the technical knowledge and expertise we were honing, these training sessions were a great opportunity for sharing our experiences with fellow professionals.

Efficient resource management is a priority for ENOC, and through these training sessions, each business unit and sub-entity within the group can be unified in our vision going forward.

Switching to Saving In January 2013, the IT team at ENOC found a way to reduce power requirements for monitors at EPPCO retail site offices. Each office had an average of three monitors and each monitor consumes 50 watts per hour.

savings of 35,320 Kwh

To reduce consumption, keyboard, video, mouse (KVM) switches were installed in these offices.

A KVM switch is a hardware device that allows a user to control multiple computers from a single keyboard, video display monitor, and mouse. In standard computing, to control multiple PCs you need to purchase several sets of keyboard, mouse and monitor. This is not only costly, but also takes up a significant amount of space, which was problematic for the EPPCO retail site offices, where space is at a minimum.

The KVM switch was developed to address demands of cost and space saving and increases in efficiency. Using a KVM switch saves the cost of purchasing a dedicated keyboard, monitor and mouse for each computer, uses less space in the server room and limits cable clutter. The KVM allows a user to access different displays from four CPU’s using only one input/ output (I/O) device, which for EPPCO, has meant eliminating two monitors from each site office.

The result has been absolute savings of 35,320 Kwh. In financial terms, with a total investment of AED 25,200, the KVM paid for itself within seven months. Additional benefits include space-saving, reducing monitor replacement costs and eliminating room congestion, as well as reducing the heat inside the offices. Savings all round.

HAMDAN AL DOUKHI SENIOR ENVIRONMENT HEALTH AND SAFETY ENGINEER Mr. Al Doukhi holds a Master’s in Engineering System Management from the American University of Sharjah and has professional certificates such as NEBOSH, C-MIST. He is a member of several major committees, including ENOC Energy and Resource Management and ENOC Risk Profiling & Emergency Response Plan.

Efficient buildings have been a hot topic in the country, and Dubai in particular has seen a boom in energy efficiency upgrades and operations. We wanted to see how it works in practice, so a delegation of 14 members led by Mr. Saif Al Falasi, CEO & Chairman of the Energy & Resource Management (E&RM) Steering Committee, paid a visit to DEWA’s sustainable building in Al Quoz.

The event facilitated sustainability knowledge exchange through a presentation and a tour of the building. The main objective of the visit was to avail the expertise of the DEWA technical team on the various sustainable components and their implementation in the sustainable building, which is Platinum Category certified by LEED. To align with the responsibilities of the E&RM department, the sustainability knowledge exchange examined solar and wind systems, air conditioning (HVAC) systems, light, water, materials, and resources utilisation efficiency, and the challenges faced in the various phases of

implementation. ENOC’s delegation was propelled to attend this event for the purpose of enhancing their social responsibility towards energy and resource conservation.

In light of this, the event inspired various business units in ENOC to propose future plans to adopt the knowledge acquired for new measures to optimise the efficiency and performance of existing buildings and business practices. Overall, the site visit was deemed very beneficial and the delegation participants provided positive feedback remarking that they would like to see further similar site visits organised.

ENERGY & EFFICIENCY 2015

A Field Trip in the Name of Efficiency

CHAPTER 02 PLANNING

50

THE STORY SO FAR

A personalised training schedule for technical staff covers aspects of energy and carbon management, energy audits and energy performance contracting.

Training is a crucial part of ENOC’s strategy for efficient energy and resource management, but also plays a role in personal development.

By Shaker Mozdi

Mix and Match for Success

ENERGY & EFFICIENCY 2015

SHAKER MOZDI SITE MANAGER Mr. Mozdi joined ENOC in 2000. He has over 15 years’ of experience in the automotive industry and 10 years in ceramic industrial work. His interest in energy conservation is based around saving tools, tips and resources with the goal of reducing energy consumption.

I attended a number of training sessions across the three different types: awareness, compliance and technical. These ranged from Energy and Resource Management Awareness training organised by the Group EHSQ Compliance Directorate to the ISO 50001 Internal Auditor Course provided by BSI. In addition, the technical training included Energy Management for Technicians by the Energy Institute (EI), a Carbon Workshop

by DCCE, Energy Performance Contracting Training by Etihad ESCO and end-user training on the ENOC Environmental and Energy Database provided by Intelex.

Each of these training sessions was structured differently. The Energy and Resource Management Awareness training ran for four hours. Several topics were covered, including different types of conventional and renewable energy sources, their advantages and disadvantages, the importance of conservation, applicable legislation and ENOC’s efforts towards reducing energy consumption.

The ISO 50001 Internal Auditor Course was held over three days. The first day was an awareness session about the ISO 50001 standard, while the ensuing days went into further detail on how to conduct an audit based on ISO 50001, including several practical exercises.

EI’s Energy Management for Technicians also ran over three days and covered modules including energy origins, renewable energy, electricity, energy data and monitoring, fuels, buildings, lighting, office equipment, transport, refrigeration, ventilation and air conditioning, hot water, catering equipment, motors and drives, compressed air, process heating and SCADA. This course was comprehensive and concluded with a written exam. Participants were also required to conduct an energy audit in their facility and indicate areas for improvement.

The Dubai Carbon workshop covered the UAE’s carbon footprint, energy initiatives, CDM projects, emission reductions through projects, GHG protocol overview, setting operational boundaries and ENOC’s emissions analysis, while the Energy Performance Contracting Training by Etihad ESCO covered the contractual arrangements between facility owners and ENOC for the implementation of energy efficiency projects, where the global investment has to be paid for through a contractually agreed level of energy cost reductions.

Each of the courses included certification, apart from the training on the ENOC Environmental & Energy Database, which was a purely practical course on how to successfully use the software.

CHAPTER 02 PLANNING

ENERGY & EFFICIENCY 2015

Point of View The training days provided effective ideas and tools for supporting the company’s energy initiatives

“ENOC has exhibited impressive leadership in sustainable development and is moving towards becoming a smarter resource efficient company.

Their deciation and acknowledgment of corprate social responsibility should be idealised and seen as encouragement for other entities.

Having worked with ENOC’s staff, they demonstrated devotion, drive and unwavering positivity to achieve continuous improvement in the sustainability area. Others should take heart in their efforts.”

Mark Hobbins, Senior Energy Manager Mitie Technical Facilities Management

In combination, the training sessions provided invaluable instruction, making participants aware of measures that can aid in being more conservative in terms of energy and resources. The courses improved competency levels in these areas and clearly showed that becoming carbon literate is the most cost-efficient way of cutting carbon emissions, as simple behaviour changes can have a significant impact on the reduction of energy and water usage. This motivated each of us to find ways to reduce our personal carbon footprint, as well as to work with others to reduce the collective footprint of the workplace.

The training days provided effective ideas and tools for supporting the company’s energy initiatives and encouraged employees to engage with the efforts of both the company overall, and their respective departments.

“The Abu Dhabi Sustainability Group (ADSG), is a membership body with over 45 member organisations, whose mission is to promote sustainability management in the UAE by providing a platform for collaboration, knowledge sharing and learning opportunities for the government, private companies and not-for-profit organisations. The ADSG was set up by the Environmental Agency of Abu Dhabi (EAD) in 2008, with the support of the Executive Council of Abu Dhabi.

ADSG members identified that energy related issues should be the focus of the group and are embedded at the core of ADSG’s strategy.

Therefore, the ADSG, in collaboration with stakeholders and partners, launched the Energy Management Flagship Programme in February 2015. ENOC was invited to speak at the introductory meeting in order to demonstrate achievable best practices for the GCC region.

ADSG members, representing multiple sectors of the economy, engaged with and were inspired by ENOC’s journey of integrating excellent energy management practices both vertically and horizontally across the business. ADSG members gave accolade on the level of professionalism and the level of integration at management level that ENOC demonstrated. Members were also impressed by ENOC’s proactiveness in this field, particularly as ENOC had implemented the best practices in advance of the publication of ISO50001. Overall, ENOC has set an excellent example for the members of the ADSG Energy Management Flagship Programme to emulate.”

Huda Mohd Al Houqani, Director Abu Dhabi Sustainability Group (ADSG)

52

By Sathisha Shetty & Jeevan Paul

Cool Savings

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

In ENOC’s retail fuel stations, air conditioning accounts for 22.5% to 25% of total site power consumption. In the UAE, the summer load runs from May to September, peaking in August, while the winter loading dips to its lowest point in January. The winter load is only 56% of the summer load, a significant variation.

In order to achieve energy efficiencies, even with variable load demand, ENOC installed Variable Refrigerant Flow (VRF) air conditioning systems across new retail sites completed in 2013. ENOC plans to adopt this technology in future sites, including in the renovation of Tasjeel sites.

VRF is an air-condition system configuration with one modular outdoor condensing unit connected to multiple indoor units. The term variable refrigerant flow refers to the ability of the system to control the amount of refrigerant flowing to the indoor evaporator units, enabling the use of evaporators of differing capacities and configurations connected to a single condensing unit. This provides an individualised comfort control, with simultaneous heating and cooling in different zones as per demand.

Unlike conventional systems, the VRF system means the AC unit works as per demand.

Secondly, the compressor is the controlling item in the VRF operations.

Occupancies with bigger air-conditioning tonnage benefit immensely from this energysaving technology. VRF is versatile in design and application and it’s possible to connect up to 50 indoor units with a single outdoor unit, saving installation space and limiting the copper piping required. Both individual and centralised control and monitoring are possible and the system is self-diagnosing.

ENOC’s initial investment of AED 336,000 is recouped through annual electricity savings of 48,506 kWh, the equivalent of AED 21,828 at current electricity tariffs. This translates to 36.7% energy savings. The payback period on the initial investment will be between 2 to 3 years.

Indoor Unit

Outdoor Condensing Unit

SATHISHA SHETTY PROJECT ENGINEER - MEP Mr. Shetty has more than 15 years’ experience across the UAE, Qatar and India, including working with a leading AC manufacturer carrier in India; the biggest GCC-based MEP Contractor –Thermo LLC at Qatar; and leading district cooling providers, such as Tabreed.

JEEVAN PAUL RETAIL PROJECTS DEVELOPMENT AND EXECUTION MANAGER Mr. Paul has more than 26 years of UAE and international experience, particularly in Africa with UN sponsored and World Bank funded projects. He was the project manager for the green ENOC fuel station and has been instrumental in implementing a number of green energy initiatives.

IMPLEMENTING & OPERATING KPI-BASED E&RM, EFFICIENCY OVERSEAS, PERFORMANCE AND PRODUCT IMPROVEMENT, ETC.

By Alia Ali Busamra and P. Radhakrishnan

High Expectations

ENERGY & EFFICIENCY 2015

These two KPIs are linked to the performance of both the organisational top level and the respective business units.

THE STORY SO FAR

Quantifiable performance indicators ensure measurement of what is meant to be managed Industrial and commercial sectors jointly account for approximately 60% of global energy use. Organisations in these sectors can often reduce energy use by 10% to 40% by effectively implementing an Energy and Resource Management System (E&RMS).

Further energy efficiencies can be achieved by implementing the concept of quick wins, where smart steps can be enacted to achieve substantial savings with minimum effort. This is in addition to the introduction of larger-scale projects which require higher investment amounts and longer execution periods.

ENOC has established strategic and operational goals and paved the road by setting smart Key Performance Indicators (KPIs) in order to achieve these goals and attain its vision to be a leading regional integrated oil and gas group, highly profitable and socially responsible towards employees, the community and the environment. ENOC established this mandate in 2008 and the specific direction towards actualising this

concept has been articulated through setting quantifiable measures that ENOC can use to gauge and compare performance in terms of meeting strategic and operational goals.

In 2013, the Group EHSQ Compliance Directorate added two new KPIs to the existing EHS Index. The first energy and resource management KPI is related to compliance with the ENOC E&RM Manual and the second is in regards to developing an energy and resource management business plan. These two KPIs are linked to the performance of individuals at the organisational top level as well as the respective business units overall.

ENOC E&RM KPIs

EHS Index EHS performance based on GEHS/G/07 KPI Guidance Manual

E&RM Compliance Index

Energy Business Plan Completion

Compliance to E&RMM (GEHS/M/20)

Develop & submit 5 yrs

Active participation in E&RM activities

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

Meet KPI 1:

Energy and Resource Management System (E&RMS) Compliance This KPI has four elements: the overall audit score which contributes to 70% of the final score, as well as the timely and accurate submittal of data, attendance at scheduled meetings, and the promulgation of training and awareness, each contributing 10% to the final score.

Three types of training programmes are considered acceptable: • Energy management systems related training such as developing, implementing or auditing of EnMS systems.

• Technical training on energy use and conservation, such as the recently completed training by the EI. • Awareness and practical training such as GEHSQC training and training obtained as part of conducting energy assessments and analysis (usually at the workplace).

The audit score itself is the result of an external evaluation of the system the respective business unit has put in place.

THESE ARE THE CRITERIA FOR THE AUDIT SCORE: A minimum score of 3 out of 4 is considered a pass.

CAS

Description

0

There is insufficient evidence to suggest the EHS Principles are recognised as requiring implementation. There is no implementation action ongoing or planned for the majority of the items considered in this element or expectation.

1

The key items of the EHS Principles are recognised as requiring implementation and are partially being complied with, but show significant gaps and weaknesses. There are not adequate plans to implement these items beyond the current level of compliance.

2

The key items of the EHS Principles are being implemented and an adequate action plan has been developed to fully implement the requirements of the element or expectation.

Implementation progress is less than originally planned.

3

The key items of the EHS Principles have been implemented to an acceptable level and the EHS Management System meets the minimum expectations of the EHS principles.

4

The key items of the element or expectation exceed the expectations of the EHS principles and are adding incremental business value. There are adequate systems in place to ensure continuous compliance and improvement.

Awareness Building

Program Development

Implementing

Management System in Place IT’S A FACT This is how we measure timelines and completeness

•

Timeliness: on time = 100%; <= 3 days delay=80%; >3 days and <=1 week = 50%; and > 1week = 30%

•

Completeness: S: All identified areas of significant use are addressed = 120%; 80% addressed = 100%; 50% addressed = 70%; some, but less than 50% = 50% M: Summarised format is complete (i.e. milestones, savings etc.) =100%; each missing item entails a 5% deduction.

The resulting score for each project line is then averaged across all projects.

C: Measurement and monitoring method clear and complete = 100% else 0%.

This score is again averaged out across all of the listed projects

Continually Improving

ALIA ALI BUSAMRA SENIOR EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Ms. Busamra holds a B.Sc. Degree in Chemical Engineering and a M.Sc. Degree in Environmental Sciences. She is Coordinator of the ENOC Energy and Resource Management Steering Committee and Secretary of ENOC Energy and Resource Management Technical Committee and member in Dubai Carbon Abatement Strategy Technical Committee.

56

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Meet KPI 2:

Energy and Resource Management Business Plan The requirement is to develop and submit a comprehensive 3 to 5 year plan (2014-2018) to achieve the optimal use of energy and resources. The plan will consist of quick wins (operational) and projects summarised in the format provided for reporting savings. Each listed project shall be separately explained in detail.

5 YEARS E&RM BUSINESS PLAN (2014-2018) Company Name: Example

P. RADHAKRISHNAN CHIEF EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Mr. Radhakrishnan has a BTech and MS degree in Chemical Engineering. He has over 30 years’ experience spanning areas such as research and development, operations, QHSE and energy in manufacturing, chemical, petroleum and power industries.

Date: 29I1I2013 Dates

S No

Proposed action

Energy/resource savings per year Responsible

Start

End

AED investments/savings

Resource

Status/Remarks Savings absolute

Unit

Savings %

Investment

Notes: 1. Proposed action means the concrete action intended to be started and completed within a specified time frame to yield reduced consumption of energy or resources 2. Responsible is the member of the Technical Committee or Steering Committee who will report and update the committees on progress at regular intervals 3. Resource is the item thet will be saved eg. Electricity. water. diesel. natural gas. lube oil etc. Be as specific as possible 4. Savings absolute is the number of units of the resource that will be saved eg. 25 kwh of electricity. 100 m3 water per year etc.

5. Units is the unit in which savings are reported. Preferred units are metric eg. kWh/MWh, m3/Iitre, kg/MT etc. For gases if volume is reported it should be at STP eg Nm3.

6. Savings percentage is the savings as a fraction of total consumption of the particular resource in the base year eg. If 100 kWh is saved per year and the annual consumption in the base year (say 2011) is 1000 kWh. then savings is 10% 7. Investment/savings is the AED invested (or required) for the action and savings in AED per year calculated as total cost ofthe resource if action was not taken minus total cost of the resource afler action

The start and completion dates of each project shall be specified, with quarterly milestones The summarised format will list savings in units (e.g. kWh, l, etc.), savings and investments in AED and savings as a percentage of the total for the specific energy or resource use The detailed project report for each project will explain methods of monitoring and measurement before, during and after implementation, so that savings accrued can be verified and validated INDIVIDUAL E&R SAVING PLAN Company Name: ELOMP

Proposed Action 1 Cost Saving (AED) 49,498

IT’S A FACT

Savings

1 2 3

Date: 10I8I2014

Install solar tubular lighting in warehouse/plant

Start Date:

1-Jan-2015

End Date:

1-Feb-2015

Savings %

0.04

CO2 Saving (Tons/year)

Energy/Resource Savings (kWh)/Year

Investment (AED)

Payback Period (Years)

32

67.774

114,000

2

Detail

The warehouse/plant area has 76 metal halide fixtures of 431 watt each operating 16 or 24 hours a day for 6 days a week.

It is proposed to install solar tubular lights which use visible solar radiation to illuminate the warehouse/plant during the day.

Rational

Solar tubular lights use direct visible light for providing high quality illumination during the day without using any electricity.

It is maintenance free and will not have any heat perceptible heat gain, thereby increasing the comfort level inside the shed.

Risks

The existing lights will require to be switched on in the event of dark days.

Next Step

Install in plant area as a first step followed by the rest ofthe warehouse upon favorable review from operators reading quality of lighting.

Responsible Person for Implementation

BU Owner

Endorsed by BU Finance

Reviewed by E&E Section

Approved by Group EHSQC

Name of the Person Designation Signature

Name of the Person Designation Signature

Name of the Person Designation Signature

P. Radhakrishnan Chief EHS Compliance Officer (E&E) Signature

Waddah Ghanem Director-EHSQ Compliance Signature

Notes: 1. Cost saving is in AED: includes cost of replacement. cost of manpower. cost of disposal, etc.

2. Proposed Action 1: Short description of priority action- Please be consistent with the headline for the Proposed Action here. Be punchy and concise here. providing more detail in details.

3. Energy/Resource Savings: Preferred units are metric e.g. kWh/MWh, m3/Iitre, kg/MT etc. For gases if volume is reported it should be at ST e.g. Nm3 4. Detail: What you are proposing. Expand detail of proposed action. explaining the background. What needs to be done and how it can be achieved 5. Rational: Why you are proposing it. What are the benefits including energy. carbon and money savings 6. Risks: What are the risks if the proposed action is implemented (not the risks if it is not). Risks of implementation 7. Next Step: How does the client go about implementing the proposed action. Immediate next steps to be taken towards implementation e.g. check manufacturer’s specifications, obtain quotes from 3 suppliers. write up operating procedures and train staff in the new method of operation. etc.

8. Please make sure that each sheet is endorsed by your concerned in charged in BU Finance

This is our KPI Calculation Formula:

•

The net score for the degree of completion is = S*(M+C)/2

•

The final score is obtained by: (Timeliness score * Completeness score)

Additionally, we requested the submission of 3 to 5 additional projects for 2015 -2019 netting at least 50% additional savings in AED over those envisaged in the original plan submitted in 2013. Each proposed project should be outlined in a separate excel sheet (Individual E&R Saving Plan) as indicated below and signed by the indicated signatories. An example is provided for guidance. Monitoring mechanisms for savings must be included.

To measure the performance against this KPI, we evaluate two distinct parts: timeliness and degree of completion.

Mindful of high concentrations of harmful emissions in and around airports, the EMGAS CNG Initiative in Dubai was introduced at Dubai Airports, with the aim of implementing a programme to convert vehicles operating within the Dubai Airport premises from petrol to Compressed Natural Gas (CNG).

Natural gas is the cleanest burning fossil fuel today, containing significantly less pollutants than gasoline or diesel. There are also significant cost advantages in using natural gas, as it is cheaper per equivalent litre compared with gasoline.

AED 4.2

IF ALL

MILLION 320 PETROL

PER YEAR

POTENTIAL SAVINGS OF

VEHICLES

IN OPERATION WERE

CONVERTED TO RUN ON CNG

NATURAL GAS

The trial process entailed the conversion of 10 test vehicles selected from within the fleets belonging to Emirates Airlines and DNATA. The vehicles, which were operating on petrol, were converted to CNG through the installation of a conversion kit. This allows the vehicles to operate on petrol or CNG by selecting the fuel of choice by a selector switch mounted on the dashboard of the vehicle.

The trials were supported by a team from Dubai Airports, Emirates Airlines , DNATA, ENOC-EPPCO Autopro and ENOC EHS and spread over a period of seven weeks from October to December 2014. They proved successful in terms of the performance of the vehicles on CNG, as well as greatly reducing exhaust emmisions, netting a substantial savings in cost and an accompanying efficent delivery system of CNG at the airport to fuel these vehicles. With these tests as the basis, it was confirmed that operating the vehicles on CNG instead of petrol could offer potential savings of AED 4.2 million per year if all 320 petrol vehicles in operation were converted to run on natural gas. Similarly, the enviornmental impact of CO2 savings based on the trials showed a reduction of 600 tonnes of CO2 per year.

WE SAY THANK YOU TO • Dubai Airports, in partcular Phil Blum, VP Health, Safety, Security & Environment; Abdul Nasser, Head of Safety Assurance and Rebekah Marshall, Environment Manager

• Emirates Airline, in particular Shankar V, Transport officer – Fleet, Central Services Department; Rajdeep Pratap, Transport Manager (Fleet); Khawla Al Khaja, Environmental Affairs Analyst

• Dnata, in partcular Mahesh Bhatia, Service Delivery Controller, Baggage Services; Komal Shangloo, dTS Engineering, Technical Services

• ENOC-EPPCO Autopro, in partcular Mohamed Eassa Al Zaabi, Category Manager; Nabeel Sultan, Sales and Marketing Manager, Automotive Services; Noel Erick Ang, Operations Manager, Autocare

• and EPPCO EHS, in partcular Osama Hassan Mekki, EHS Manager –Retail IT’S A FACT Emirates Gas LLC is a member of the Emirates National Oil Company (ENOC) Group.

ENERGY & EFFICIENCY 2015

A Different Kind of Fuel

CHAPTER 03 IMPLEMENTING & OPERATING

FAZAL ALI KHAN CNG DEVELOPMENT MANAGER Mr. Khan holds qualifications in Automotive Engineering and Alternative Fuel Technology and has been at the forefront of CNG/ NGV developments in the region as Vice President of the Asia Pacific Natural Gas Vehicle Association since 2003. He is also the Chairman of the ANGVA Safety Advisory Panel.

58

Work in Practice

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

What it means to be engaged on the Technical Committee...

Mark Louie Burling and Randy Montesclaros, EPPCO Pipeline Supervisors – Aviation, share their experience as recent entrants to ENOC’s Energy and Resource Management Technical Committee.

MARK LOUIE P BURLING PIPELINE SUPERVISOR Mr. Burling is a Registered Electrical Engineer (REE) and a member of ENOC’s Energy and Resource Management Technical Committee and the Energy Institute. He completed the PLC, SCADA and Instrumentation course at the Emirates Education Centre in Dubai, UAE and currently focuses on electrical, instrumentation and control.

RANDY MONTESCLAROS PIPELINE SUPERVISOR Mr. Montesclaros is a licensed Electronics and Communications Engineer. He is a member of the Technical Committee of ENOC Energy and Resource Management, and the Energy Institute, amongst others. He has 15 years’ experience in instrumentation and control systems and holds certificates in programmable logic controllers.

Through its members, the Technical Committee aligns individual business units and helps implement ENOC’S unified strategy towards resource management, from measuring current energy usage and performance to developing and maintaining a comprehensive measurement system. The committee also ensures that all facilities are equipped with the infrastructure and knowledge, and that each business unit experiences continual improvement in the areas of energy management set forth by the Steering Committee.

Prior to joining the Energy and Resource Management (E&RM) Technical Committee, we were already practicing energy conservation at the EPPCO depot, albeit unwittingly. These practices were mainly in place because of situational needs. For example, we would promptly repair a leaking water pipeline to prevent flooding in certain areas, or we would set auto timers for pole lights according to seasonal changes. These efforts were born out of necessity rather than as a focused effort to adopt more sustainable practices. When we joined the E&RM Technical Committee, we were exposed to a wider range of ideas and practices that align well within our business unit. E&RM has made us more conscious and vigilant of energy usage in our work surroundings. We are dedicated to finding effective ways to improve the efficiency in our existing system, with our main goal being that of an even more eco-friendly depot. With this in mind, we are now actively tracking the progress of projects and activities in the depot to ensure that energy conservation is a priority.

we were already practicing energy conservation at the EPPCO depot, albeit unwittingly

We have found the meetings with suppliers concerning energy conservation very productive. Through these meetings, we have received valuable insight on conserving energy, and have been introduced to products and ideas that have been the driving force in our pursuit of establishing sustainable practices. At present, we are focusing on measures to improve the efficiency of our equipment and reduce operational costs as a starting point.

Since joining the Technical Committee, we have introduced new projects that clearly highlight how efficient resource management can have a strong business case. We are now in the process of changing the old lighting fluorescent lamps into LEDs, after having picked this idea up from one of our meetings with a supplier. As per prior studies, this project is expected to have a positive effect on energy consumption at the depot. This is one move towards our goal to eventually make the Joint Industry Fuel Farm (JIFF) system more energy efficient.

A large concern at JIFF has also been water conservation, following many instances of minor and major leaks in the depot. To address this, some of the measures in place include: installing solenoid valves with timers on irrigation lines, re-installing irrigation and domestic piping to eliminate multiple underground leaks, and overhauling fire pumps to arrest leakage past gland packing.

In essence, the key learning point we have taken from our move to the Technical Committee is that sustainability is about making responsible decisions that can reduce our businessâ&#x20AC;&#x2122; negative impact on the environment. It is not simply about reducing the amount of waste produced or using less energy, but rather, is about developing processes that will lead to businesses becoming completely sustainable in the future.

Abra ferryboats are used extensively on Dubai Creek with an estimated 2.6 million people making use of them for creek crossings.

Orthodox abras function on dieselfuelled engines, which are tremendously harmful to the environment and not resource efficient. There are around 150 abras on Dubai Creek that still run on diesel engines, with the age of the engines ranging from recently produced and equipped to 30 years old. The older the engine gets, the more hazardous it becomes in regards to the environmental impacts.

In an effort to benefit the environment, Emirates Gas (EMGAS) and the Road and Transportation Authority of Dubai (RTA) collaborated to initialise a project to convert abras to Compressed Natural Gas (CNG). The benefits of CNG-run engines include:

STATING& ENERGY ENOC EFFICIENCY 2015

Gas-Fuelled Ferries

CHAPTER 03 IMPLEMENTING & OPERATING

overall fuel efficiency reduced air pollution from exhaust fumes and the prevention of spills and contaminants in the creek A pilot project was conducted to convert a number of abras to CNG and a mobile CNG filling station was installed on the creek by EMGAS. The pilot showed successful results and in the wake of this, EMGAS and RTA are taking steps to upscale the initiative and expand it further.

60

Investing in the Future

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

A targeted investment plan will ramp up operational efficiency between 2014 and 2018 Energy efficiency implementation is increasingly being recognised by policymakers worldwide as one of the most effective means to mitigating rising energy prices, representing a win-win option by providing positive financial returns and a lower carbon footprint.

Energy efficiency investments can be highly profitable by lowering utilities costs for companies. These investments usually have short payback periods, with cost savings over the lifetime of the capital stock often outweighing the additional capital cost in implementing the efficiency measure.

From 2014 to 2018, ENOC is set to invest US$15 million in energy efficient infrastructure, leading to a projected US$6.9 million in savings within a twoyear payback period.

A 10% of investments in electricity saving measures from 2014 to 2018 have been allocated for BMS upgrades and (â&#x20AC;Ś) [are] expected to save US$ 449,591 per year

Total Required Investment and Estimated Savings for ENOC Group (2014-2018) (including EPCL & excluding overseas terminals)

$15 m INVESTMENT

$6.9 m SAVING

2 Years PAYBACK

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

Establishing the baseline The first step in any energy saving programme is to measure consumption. With accurate baseline consumption data and continuous monitoring, we can measure energy savings resulting from the installation of energy saving equipment, and additionally identify inefficient equipment. In 2013, the total consumption of energy across the group amounted to over 434 million kWh, which we used as a main baseline figure. At present, ENOC boasts roughly 10,687 energy efficient lighting units in 250 sites, 73 waterless urinals in 5 sites and 5 water recyclers in 5 sites, among other resource efficient initiatives.

Efficient electricity usage Based on our projections, we are aiming to invest over US$5 million in electricity saving measures, 65% of which will be channeled into replacing lighting fixtures across ENOC’s operations. LED and compact fluorescent lamps (CFL) can offer operational energy savings of up to 80% over conventional incandescent lamps. This measure has already been rolled out at EMGAS, CYLINGAS, ELOMP, EPPCO Aviation, and our various retail, automotive services and Tasjeel sites in 2013 and 2014. We expect this measure will save 8.9 million kWh across all of ENOC’s offices and operational sites.

Another key area of investment is upgrading the air dryers in the refinery, which alone will contribute to savings of around 630, 884 kWh which translates to roughly US$850,917 per year.

Additionally, ENOC has envisaged an upgrade of current BMS systems at various locations to improve the efficient use of electricity.

BMS is a computer-based control system installed in buildings that controls and monitors the building’s mechanical and electrical equipment for various systems, such as heating and air conditioning, lighting, security, and so on. Highly flexible and customisable, BMS can be easily adapted to different needs, and can be modified to achieve better operation to reduce the expenses associated with inefficiency and wastage. By using various interior and exterior sensors and a unified computer network, the building can receive immediate data, including energy usage, which allows users to control each of subsystems individually.

A 10% of investments in electricity saving measures from 2014 to 2018 have been allocated for BMS upgrades and for ENOC’s building upgrades, expected to save US$ 449,591 per year.

Efficient water management Responsible water management is a high priority for ENOC as a leader in the upstream and downstream petroleum industries. ENOC is proactively developing new, less water-intensive technologies and methods of production that also maximise water recycling and reuse, for example water recyclers in car washes, or waterless urinals in various locations within ENOC such as EMGAS, ENOC Complex, EPPCO Distribution, etc.

In general the majority of investment into water saving measures looks into water recyclers.

On a smaller scale, ENOC will be investing in waterless urinals, which use biodegradable chemicals instead of water and water aerators across all its operations and will reinstall irrigation piping with solenoid valves to efficiently regulate water usage.

Opportunities to save – Diesel Clean Drive, a special additive that can be added to fuel to clean the deposits inside the engine, has been trialled as a pilot study to increase vehicle fuel efficiency. The initial results are encouraging, however, the long-term success of Clean Drive hinges on multiple external factors before it can be rolled out.

62

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Opportunities to save – Fuel gas A waste Heat Recovery Unit (WHRU) is an energy recovery heat exchanger that recovers heat from hot streams with potential high energy content.

This includes processes such as hot flue gases from a diesel generator, steam from cooling towers, or even wastewater from different cooling processes such as in steel cooling. ENOC is investing around US$ 7.8 million to install new WHRUs in their Naphtha Hydrotreater and gas turbine to recover the amount of heat generated. This will lead to an annual saving of about 1.99 MMscfd which translates to roughly US$ 2.9 million per year.

There is enormous potential for gas leaks in all types of oil and gas industry, and each type of leak is accompanied by its own safety concerns for the site and staff. Dedicated to reduce leakage rates, ENOC is exploring the most appropriate technologies that position resource management and environmental safety at the heart of these measures.

At present, traditional gas detection technologies, such as infrared, catalytic bead and electrochemical-based sensors are efficient at detecting gas leaks in enclosed process environments. For gas leaks that may occur in open areas, these heavy gases disperse rapidly, but can still collect in unprotected areas. This is why ENOC aims to invest in ultrasound gas leak detection technology for example.

Gas leaks generate both audible and ultrasonic frequencies as gas travels from high-pressure environments to low-pressure environments.

Ultrasound gas leak detection uses acoustic sensors to detect changes in noise within an environment that is beyond the scope of human hearing.

Ultrasound leak detectors do not rely on the accumulation of potentially explosive or otherwise dangerous gases to trigger an alarm, which cements ENOC’s commitment to environmental safety.

Tangible returns In all of these measures undertaken by ENOC for the efficient management of its energy and water usage, the investment payback period has been projected to an impressive 24 months. Additionally, ENOC’s various business units have drafted a supplementary plan, which will result in additional savings of around US$ 3.7 million. These projects will be implemented between 2015 and 2019.

The plan has started bearing the fruits in the first year itself whereby ENOC saved US$1.8 million against the plan of US$1.6 million.

The roadmap for energy and resource management at ENOC clearly defines the company’s commitment towards realising these first steps now, and is set to pave the way for industry best practices in years to come.

Winning Actions In 2012:

Investment of AED 600,000

SAVED

Maintain room temperature at 24̊C during working hours and 27̊C after office hours

AED 1,100,000

Switch off office lighting after working hours

HOW DID WE DO IT?

In 2013:

Investment of AED 607,000

SAVED

AED 1,700,000

Replace existing light Bulbs with LED lights

Utilise solar panels to heat water

Microbiological systems for a waterless urinal With the need for resource conservation and waste minimisation, DUGAS determined that water usage needed to be managed. Bhaskar Sinha, Philip Menzes and Adel Ali were responsible for an initiative to replace water-flush urinals with water-free urinal systems from 2010 until April 2012, with the aim of addressing water-use efficiency.

Liquid barrier Urine

ENERGY & EFFICIENCY 2015

Ending Water Waste

CHAPTER 03 IMPLEMENTING & OPERATING

To Drain

There are three main water-free urinal systems. Microbiological systems involve the use of replaceable cartridges which utilise microbes to break down urine into odourless components and use the trap or u-bend as the seal against odour from the drains.

Regular sluicing then prevents blockages.

Liquid barrier systems use replaceable cartridges or in-built traps to collect debris and help prevent blockages. An oil-based sealant floats on top of the liquid to prevent odours. Finally, in valve barrier systems, replaceable cartridges or in-built traps have a one-way valve or siphon to prevent odours from entering the washroom. All result in better air quality within washrooms.

After examining the options, DUGAS opted for a water-free urinal system with an in-built odour trap that blocks all drain and sewage odour. The system not only uses no water or electricity, but also improves hygiene compared to water-flushed urinal systems.

Flushed urinals often have an ammonia smell, due to the chemical reaction between the urine and the water in the urinal. Waterless urinals have no odour since there is no water and no chemical reaction, plus the system is completely sealed. Waterless urinals look

like regular urinals without a pipe for water intake. The urinals drain by gravity and the outflow pipes connect to a building’s conventional plumbing system, with waste sent to a water treatment plant.

As this technology requires no use of water, the result has been an 80% annual water cost-saving. The system also makes a significant contribution to minimising waste water from DUGAS’ operations. In practical terms, the water-free system has resulted in cost-savings of AED 144,400 on annual DEWA bills (3,140,000 IG), as well as conserving water resources and reducing the energy used in a water-flushing system. The water-free system is easy to maintain, resulting in reduced operation and maintenance costs.

Another benefit has been reducing the quantity of sewage water that requires disposal and the overall improved hygiene of employees. During implementation stage there were a few cultural issues as well as operational issues which were addressed holistically to ensure the system is effective.

BHASKAR SINHA ENVIRONMENT & ENERGY MANAGEMENT SUPERVISOR Mr. Sinha has an MTech from Indian Institute of Technology, Delhi and over 21 years’ industrial experience. He has hands-on experience with sustainable management and a special interest in energy, QHSE, and emergency management and has published numerous research papers in international journals.

64

By Fazil Abdul Rahiman

Carbon Management for a Hydrocarbon Manager

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

How Greenhouse Gas Emissions can be seen as a source of income Oil and gas companies generate Greenhouse Gases (GHGs) in almost every facet of their business, from the discovery, extraction and processing of hydrocarbon resources, to its delivery to their customers. The most significant GHG emissions during these processes come from the combustion of fossil fuels for energy, and gas flaring. Recognising the potential to reduce carbon emissions, ENOC has been working closely with the Dubai Carbon Centre of Excellence (DCCE) to establish a carbon management strategy.

Statement “Across the past seven years, ENOC has taken comprehensive measures to reduce energy and resources. I am proud to be part of this journey as a member of the ENOC E&RM Steering Committee.

EPPCO Distribution has been at the forefront in regards to E&RM initiatives and has been a pioneer in achieving a reduction in fuel consumption by trialling the Clean Drive additive in their fleet. This initiaive was a recipient of the ENOC Suggestion Scheme Award in 2014. The Clean Drive product will be rolled out across the fleet and will be shared with similar fleet operators within the Group to spread the benefits.

In addition, ED has moved from procuring steel tankers to alumimum, which is lighter and consumes less fuel.”

Ahmed Al Mulla, Senior Manager Distribution EPPCO Distribution

Before establishing a carbon management strategy, ENOC wanted to tackle potential barriers for adoption by establishing a clear methodology for data and emissions calculation, and also by increasing employee awareness, through emphasising how the United Nations Framework Convention on Climate Change (UNFCCC)’s Clean Development Mechanism (CDM) can be seen as a potential source of income and international recognition, as successful CDM projects earn tradable and saleable certified emission reduction credits. Increased awareness across ENOC’s workforce can help the company invest time and effort in feasible projects.

DCCE’s unique experience working with other corporate carbon management strategies with entities such as DEWA and EGA Jebel Ali proved advantageous in gauging the challenges ENOC may face in establishing its own strategy. Understanding the corporate structure of the company lies at the core of developing a strong carbon management strategy. We conducted several meetings with the different teams involved, and through workshops, we were able to provide solutions tailor-made for ENOC.

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

With the medium to long term in mind, the project included three different workshops: carbon footprinting; CDMs and carbon Markets; and energy performance contracting

With the medium to long term in mind, the project included three different workshops: carbon footprinting; CDMs and carbon markets and energy performance contracting.

These workshops focused on building awareness, and as a segue for the second phase of the service-level agreement; to prepare carbon footprint calculators for each of ENOC’s business units. This phase of the project established baseline figures, which is necessary as a primary marker of progress.

After this phase, we prepared carbon footprint calculators for the Retail Business Stream (RBS) and Emirates Gas (EMGAS).

The United Nations Framework Convention on Climate Change (UNFCCC)’s Clean Development Mechanism (CDM) can be seen as a potential source of income and international recognition.

The calculators that were handed over to the ENOC team are universally relevant and can be applied across the board to measure carbon emissions, as well as to study any trends that can be accounted for in an emissions reduction plan. An initial CDM feasibility study based on ENOC’s business plans is also part of our deliverables. This is to strengthen the company’s focus on carbon emission reductions as a pillar for future growth.

Following DCCE’s efforts to set the necessary foundations in place, the ENOC team will continue to utilise the carbon calculators for the remaining business units. ENOC will also generate projected annual emission trends starting from the 2011 to 2014 timeframe.

Based on the detailed results from carbon footprinting, the CDM feasibility study and the review of ENOC’s strategy plan, ENOC will be able to create a carbon management strategy that is also in line with Dubai’s carbon abatement strategy. As a leader in the sector, ENOC’s move towards understanding and reducing its emissions sets the benchmark high for the industry and can propel the UAE onward.

FAZIL ABDUL RAHIMAN ASSISTANT TECHNICAL MANAGER, DUBAI CARBON CENTRE OF EXCELLENCE Mr. Abdul Rahiman holds a Master’s degree in Electrical and Power Engineering. For Dubai Carbon he manages projects related to energy efficiency, emission reduction strategy, renewable energy and climate change mitigation.

66

By Alia Ali Busamra

Trial and Error

ENERGY & EFFICIENCY 2015

A reduction of more than 30% in energy consumption was achieved by using VFDs

THE STORY SO FAR

Testing and Pioneering New Technologies Science and technology are undoubtedly dynamic. There are significant discoveries and new products introduced by vendors every year. Some of these technologies are viable and others are not - some technologies may carry risks in terms of long-term reliability, maintenance and operational costs, and payback periods.

In order to build a resilient basis for evaluating new technologies and products in the field of energy and resource management, ENOC has developed a mechanism to understand and verify the products and technology offered by different vendors during its Energy and Resource Management Technical Committee meetings. This not only ensures the long term viability of these new products but also promotes a shorter payback period which is a crucial part of sustaining the business.

Pilot studies or field trials are small scale preliminary studies conducted in order to evaluate feasibility, time, costs, adverse events and side effects in an attempt to predict an appropriate sample size and improve upon the prototype prior to instituting a full-scale project.

During ENOC E&RM Technical Committee meetings, vendors are invited to present their products and technologies related to E&RM so that members can learn about the new technologies. Some pilot projects have been successfully implemented and have been rolled out on a mass scale as a result of these presentations. Others have shown shortcomings based on actual field trials as they did not substantiate the vendorsâ&#x20AC;&#x2122; claims of saving energy.

ENOC has conducted various pilot studies and field trials through its business units which has led to successful implementation and verification of the technology. One example is the installation of two Variable Frequency Drives (VFDs) on LPG filling pumps at EMGAS on 1 August 2013. A VFD is a

CHAPTER 03 IMPLEMENTING & OPERATING

one Ceiling Cassette Split Unit (AC Type: split ductable and package units, AC Brand 8 Ton: York 6) at retail site 1066 in Mirdif, Dubai in the C-store. The test was conducted in August and September 2014 and the test results showed that the AircoSaver devices (four devices were installed, each unit costing AED 1,000) reduced the electricity consumption of the AC units by an average of 14.7%, with total savings of 461.95 kWh or AED198.6 over a period of five days.

device used to control the speed of an electric motor by changing the frequency of electricity supply. A reduction of more than 30% in energy consumption was achieved by using VFDs. The average consumption of energy was reduced from 24 KW/hr to 16 KW/hr.

This resulted in an estimated annual reduction in energy consumption of a minimum 41,000 KWh, which is quite substantial. These promising results encouraged EMGAS to roll the project out for tanker filling pumps, where the potential savings were expected to be higher, at around 50%.

Another pilot study was conducted on an AircoSaver device at retail site 1066. The AircoSaver is an intelligent retrofit control unit that adds intelligence to simple air conditioning systems and improves their energy efficiency. The objective of the pilot study was to analyse the performance of the AircoSaver in three Package AC units and

The indoor temperature could be maintained at a set point. The reduction in compressor run-time was 17%. The payback period is estimated to be 100 days and savings of AED 32,000 will be achieved within 3 years.

ENERGY & EFFICIENCY 2015

Four devices were installed, each unit costing AED 1,000, reducing the electricity consumption of the AC units by an average of 14.7%

Since the results of the pilot study were promising, the technical members were urged to implement the same in their sites where and when applicable.

As some members of the ENOC E&RM Technical Committee had doubts about the effectiveness of waterless urinals, a pilot study was conducted in EMGAS and the project was found viable with no complaints received to date. For this pilot study, prior to the change, eight sub-meters were installed for each waterless urinal to monitor consumption.

The ordinary urinals consume 30 IG per month compared to waterless urinals. The cost of each waterless urinal is around AED 3,500 including installation. The results encouraged all business units to go ahead with such initiatives where and when applicable and practical.

ALIA ALI BUSAMRA SENIOR EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Ms. Busamra holds a B.Sc. Degree in Chemical Engineering and a M.Sc. Degree in Environmental Sciences. She is Coordinator of the ENOC Energy and Resource Management Steering Committee and Secretary of ENOC Energy and Resource Management Technical Committee and member in Dubai Carbon Abatement Strategy Technical Committee.

68

By Waddah S. Ghanem Al Hashemi

Research Outside the Core Business

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

The vehicle emission study as the foundation for more stringent legislation to come In keeping with its commitment to environmental protection and the sustainable use of resources, from time to time ENOC carries out research and shares the results with concerned parties. Some of the studies such as Environmental Impact Assessments (EIA) and Environmental Site Assessments (ESA) are intended for internal stakeholders. However, other studies, one of which is the subject of this article, are provided for external stakeholders such as regulatory bodies and government agencies.

CHAPTER 03 IMPLEMENTING & OPERATING

The UAE standards for vehicle emissions are limited to CO and HC concentrations, which are required to be less than 4.5% and 800 ppm respectively. Both the EU and the US have fleet specific emission requirements for CO, NOx and HC and additionally CO2 and PM for the EU. These specifications mean that the average emissions from all vehicles sold by a vehicle manufacturer should not exceed the specified limits. If the manufacturer sells highly polluting vehicles they must compensate by selling a large enough number of low-emission vehicles.

CO Nitrogen Oxide

NOx

Carbon Dioxide

Hydrocarbons

HC

CO2

Particulate Matter

PM

EMISSIONS

ARE RESPONSIBLE

F O R G LO B A L

WARMING

causing serious impacts on the environment

Carbon Monoxide

AND DIRECTLY REFLECT THE

FUEL EFFICIENCY

OF THE VEHICLE 70

CRITERIA POLLUTANTS

Emissions data was gathered from published sources such as the World Bank, UN, EU and the US Environmental Protection Agency (USEPA). The data consisted of three main categories: per capita emissions for various countries, vehicle emission standards and fuel efficiency. The UAE was the second largest per capita emitter of CO2 with more than twice that of UK emissions in 2010. Per capita NOx emissions in the UAE were also high, about twice that of the US and over four times those of European countries.

FROM PETROL VEHICLES ARE

adverse effects on human health

The study was limited to petrol vehicles as they are the largest contributors to pollution within the category of road transport in Dubai. The emissions of concern from petrol vehicles are Carbon Dioxide (CO2), Carbon Monoxide (CO), Nitrogen Oxide (NOx), Hydrocarbons (HC) and Particulate Matter (PM). CO2 emissions are responsible for global warming and directly reflect the fuel efficiency of the vehicle. The other emissions are called criteria pollutants and have adverse effects on human health, as well as causing serious impacts on the environment such as acid rain and photochemical smog.

THE EMISSIONS OF CONCERN

CRITERIA POLLUTANTS

Earlier studies for external stakeholders included a study on exhaust emissions from vehicles for DIA/Dnata in 2005 and a study on vehicle emissions in Dubai and Sharjah in 2008. The focus of these studies was pollutant emissions from the vehicles and recommendations on steps to be taken to reduce emissions. The latest study is much broader in scope and relates to â&#x20AC;&#x153;fuel efficiency, carbon and pollutant emissions from petrol vehicles in Dubaiâ&#x20AC;?. The research work started in 2013 and the final report was completed in 2014 and reviewed by Dubai Carbon. It is published in April 2015.

ENERGY & EFFICIENCY 2015

ENERGY & EFFICIENCY 2015

The UAE standards for vehicle emissions are limited to CO and HC concentrations, which are required to be less than 4.5% and 800 ppm respectively

THE STORY SO FAR

Statement â&#x20AC;&#x153;ENOC Processing Company LLC (EPCL) has always been a committed partner in innovating and undertaking sustainable projects including E&RM initiatives. Adopting scientific practices for sustainability reporting and E&R management is one of the important steps in achieving tangible goals that support sustainable development. EPCL has established a formal E&RM team which is responsible for managing EPCL energy performance, and as a technical committee member, the main supporting effort is to provide the GEHSQ with all decisions and actions and the status of EPCL E&R conservation projects. The biggest achievement of the collaboration with the ENOC E&RM team to date is that the E&R management system has been improved to support environmental sustainability and promote energy use efficiency, in line with the Dubai Integrated Energy Strategy 2030 announced by the Dubai Supreme Council of Energy.â&#x20AC;?

Abeer Belzumool, Environment Engineer, EPCL

The US limits are more lenient than the EU and hence these were taken as the benchmark for comparing results. The US limits are in units of mg of pollutant emitted per km travelled and are 2,125 for CO, 250 for NOx and 156 for HC. As the US did not have any limits for CO2 at the time of this study, the EU limit of 140 g/km was used.

Following the published data review, field data was collected. The field data spanned 14 months from December 2011 to January 2013, and was obtained from vehicle testing stations in Dubai. The parameters of importance for this study were CO, HC, manufacturer and model of vehicle and km reading. CO2, NOx and PM values would have been useful but are not measured as the emission standards of Dubai do not require this measurement. Quality assurance methods were carried out on the raw data and data that contained errors or was incomplete was removed. The remaining good data was used for further analysis.

The first step was to determine the kms run, fuel consumed and amount of CO2 emitted by each vehicle. This was carried out by using the published combined fuel efficiency data for the model from the manufacturer or the USEPA. Once completed, the total

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

WADDAH S. GHANEM AL HASHEMI GROUP EHSQ COMPLIANCE DIRECTOR

kms and CO2 emissions rate for each manufacturer were obtained and compared to the benchmark of 140 g/km. None of the manufacturers met the benchmark figure. The best was 180 g/km and the worst 360 g/km, a range of 30% to 160 % above the benchmark.

The average was 80% above the benchmark, indicating a fuel efficiency of about half that of the EU. This was no surprise as the proportion of large vehicles is high in the UAE. Next, the CO and HC emission rates were calculated using the measures of CO and HC concentration from testing and the calculated CO2 rate above. None of the manufacturers met the lenient CO benchmark of 2,125 mg/km. The average CO emission rate was about 8,000 mg/km, around four times the benchmark and eight times the EU limit of 1,000 mg/km. The HC emission rate was more promising with more than half of the manufacturers meeting the US rate of 250 mg/km, though not the EU limit of 60. All Korean and almost all European manufacturers were under the limit. However, the average emission rate for HC was 30% above the benchmark. It may be noted that all of the above vehicles passed the Dubai emission test requirements.

In conclusion, with low fuel prices and the absence of incentives for fuel-efficient vehicles, the high emission rates of CO2, CO and HC are understandable and will continue unless changes are made to the way vehicles are tested and priced. Without change, manufacturers have more incentives to sell larger, less fuel efficient vehicles due to higher margins.

To reduce pollution from vehicles and conserve fuel, the following recommendations are made.

Firstly, test requirements for vehicle emissions should be enhanced to include NOx and PM tests. The UAE may consider a fuel-efficiency labelling system for vehicles on the same lines as those that exist for electricity-consuming equipment. Additionally incentives and disincentives for efficiency, or lack of it, may be considered through variable registration fees, parking charges and toll charges.

ITâ&#x20AC;&#x2122;S A FACT

Mr. Ghanem has a B.Eng. in Environmental Engineering from University of Wales and an MSc in Environmental Sciences from the UAE University and an Executive MBA from the Bradford School of Management, UK. He has co-authored three books on organisational management and holds senior roles in numerous EHSQ and organisational committees.

The US limits are in units of mg of pollutant emitted per km travelled and are 2,125 for CO, 250 for NOx and 156 for HC

Petrol vehicles emit Carbon Dioxide (CO2), Carbon Monoxide (CO), Nitrogen Oxide (NOx), Hydrocarbons (HC) and Particulate Matter (PM).

72

Tank Trucks Tighten their Belts

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

A few measures enable EPPCOâ&#x20AC;&#x2122;s fleet to distribute petrol in the most efficient manner EPPCO Distribution (ED) owns, manages, operates and maintains a fleet of tank trucks for the supply of petroleum fuel to petrol stations and consumer sites.

ED being a cost centre has always been cost-conscious, looking into initiatives to reduce operating and maintenance costs. ED is certified to ISO 9001, BS OHSAS 18001 and ISO 14001 standards. ED is focussing on areas to support cost reductions and protect the environment, as well as conserving energy and resources, notwithstanding increasing safety by reducing accidents on the road.

By Waleed Haidra & Vallilath Unnikrishnan

In view of the above, ED vigorously forged ahead with the following initiatives for planning and execution:

Reduce tare weight of the tanker

Reduce fuel consumption by using an additive or compound

Electronic speed limiter on trucks

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

1. Reduce Tare weight of the tanker

ED tankers are built with carbon steel that has a tare weight of 15 tonnes. Alternatively, aluminium has come into the market and ED conducted a study on the use of this alternate material. Through M/s HEIL it was understood the tare weight would reduce to half and have additional benefits such as a reduction in fuel consumption, improved mileage, increased tyre usage, increased longevity of the tanker, anticorrosive properties and a reduction in overall maintenance costs.

Though the initial cost of aluminium tankers is higher than steel tankers, ED took the decision to purchase the same and over the past few years has phased out all steel tankers, replacing them with aluminium. The results are reduced maintenance costs, improved Km/ltr or reduced fuel consumption, reduction in the number of breakdowns and increased mileage before tyre replacement. The cost per BBl reduced from 2.35 in 2012 to 2.08 in 2013.

2. Reduce fuel consumption

ED explored the market to identify a manufacturer that could supply either a device connected to the fuel injector or an additive or compound for use with the fuel. A manufacturer cum supplier from UK was invited to present and demonstrate their products in a pilot run. This was fruitful as the compound known as Clean Drive has two benefits: reduced fuel consumption or improved mileage and a reduction in emissions. This also resulted in a reduction in costs. A three month functionality test on engines was conducted prior to use of the Clean Drive compound and after implementing the project the engine results showed no change, thus no negative effect. The Clean Drive compound added to the truck tank helped: complete fuel oxidation remove engine deposits

improve mileage reduce emissions

Truck Unit L 71972 1400 1st dose

1200

2.4

600

2.3

2.30

2.2

200

2.1

0

-

400

5

9

12

15

18

21

25

29

Oct ‘13

1

5

9

12

15

18

21

25

29

Nov ‘13

KM RUN

Cost Saving & Fuel Reduction

5

9

12

15

18

21

25

29

30

2

Dec ‘13

DGO LTRS

CUM. AVG KM/LTR

Value (AED)

Emission

Value

5,600

K Value Before

0.39 m -1

603,240

K Value After

0.31 m -1

Annual Cost of the Clean Drive Compound Annual Diesel Cost Saving (40 Trucks)

VALLILATH UNNIKRISHNAN

163,000 litres

Annual Reduction of Diesel Consumption

3. Electronic speed limiter on trucks Accidents have been on the increase, and with further increases in vehicular traffic it is imperative to find ways and means to counter accidents, thus increasing safety on the road.

Electronic speed limiters are one initiative for reducing accidents as well as optimising the use of fuel. The speed is programmed into an electronic system within the truck, whereby it does not permit the driver to cross the set speed limit. In the below chart in can be seen that the motor vehicle accident frequency rate decreased to below 1 accident/MnKm against the benchmark of 3.5 accident/ MnKm Motor Vehicle Accident Frequency Rate Per Mn. KM Driven (MVAFR)

Company Tank Truck Accidents Trend

Bench Mark = < 3.5 -72% Vs Benchmark -51% Vs 2013 Target

8.00 7.00

35 30

6.00

25

5.00

29 26

20

4.00 3.50

3.50

3.00

15

17

15

2010

2011

10

2.00

5

1.00 0.00

Mr. Haidra has been with ENOC for more than 26 years, with 25 years’ retail experience.

His varied experience in retail operations ranges from managing a carwash and oil change business, Pronto and Zoom C-Stores to fast food restaurants.

2.5

2.47

800

DISTRIBUTION OPERATIONS MANAGER

2.6

+6.5%

2.53

1000

2.7

2.63

2nd dose

WALEED HAIDRA

2007

2008

2009

2010

Avg. Safety Incident Rate / Million Km

2011

2012

2013

Million Km Run

0

2008

2009

All 5 accidents in 2013 are minor reportable

5

5

2012

2013

MAINTENANCE & TECHNICAL SUPERINTENDENT Mr. Unnikrishnan has over 38 years’ experience in the region in the automobile industry in areas such as maintenance, technical, design and advanced safety features. Currently he is responsible for upkeep of the EPPCO Distribution maintenance fleet and providing technical support.

74

By Bhaskar Sinha

Want Not, Waste Not

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Waste water treatment at DUGAS In addition to Dubai Local order 1991 Article 4, which prohibits DUGAS discharging industrial waste to soak away pits, ISO 14000 requires DUGAS to have “zero discharge of liquid wastes to ground soak-away or evaporation ponds.” The Dubai Municipality ECS Technical Guideline No.13 also provides a requirement for recycled water use for irrigation.

Combining these three edicts, the Waste Water Treatment Plant (WWTP) at DUGAS is designed to treat an average of 77 m3/d (123 m3/d max) of waste water generated at the Gas and MTBE plants. The extensive processing steps start with oily water separation and then run through flow and concentration equalisation. The pH levels are adjusted and the waste water then goes through dissolved air flotation and sludge dewatering, before being subjected to a biological treatment using a membrane biological reactor. The final step is reverse osmosis, with the resulting water produced from the WWTP suitable for irrigation use.

This plays a significant role in reducing the site’s potable water usage and results in financial savings.

In this project undertaken by Satya Malpani, Raylon Laborde, Andrew Gregory, Don Johnson, Vasudevan Kumaresan, W Patrick Garrett, Andrew Fake, Mohammed Al Hammadi, and Bhaskar Sinha, extensive laboratory testing was undertaken to finalise the design of the waste water treatment plant. The results are that the plant improves the quality of DUGAS waste water to the point that it can be used for irrigation, deriving savings of AED 267,130 on the annual DEWA bill (5,807,810 IG). All contaminated process waste water is treated and reused and the irrigation water produced is analysed daily through laboratory tests to ensure it is within the allowable limit set by the UAE legislation for agricultural use.

WWTP Primary Unit

WWTP Secondary Unit

Statement “One of ENOC’s strategic objectives is to “align with UAE’s energy needs and contribute to [its] economic development”.

Hence, E&RM is the process of looking in to all possible and practical ways to optimise energy efficiency throughout all business units. I am proud to be part of the E&RM Technical Committee, where I have the opportunity to develop and share new ideas in the quest to preserve valuable resources. I hope to see the E&RM Steering and Technical Committees achieve their goals in 2015.”

Abdulla A Al Hammadi, Manager – Environment, Health & Safety Dugas

The innovative technologies behind ENOC’s Green Petrol Station

It is well-recognised that the excessive use of private vehicles is detrimental to the environment, causing air pollution and greenhouse gas emissions that contribute to anthropogenic climate change. According to the UAE Ministry of Energy, road transportation caused 22% of the country’s greenhouse gas emissions in 2013. In recognition of this, Emirates National Oil Company (ENOC) introduced its first green service station in The Greens neighbourhood of Dubai, catering to environmentally aware customers and setting an example for the better utilisation of resources.

The world’s first ‘green’ gas station, BP’s Helios House in Los Angeles, provided the inspiration behind the initiative, a first in the Middle East. The station, being one of ENOC’s series of eco-friendly initiatives for a more sustainable future of the Middle East, includes a range of unique features aimed at reducing the carbon footprint of customers.

Among these features are advanced technological devices to contain petrol vapours released as petrol is loaded into the station’s main holding tanks, and later into vehicle fuel tanks from the pump. As a car is refuelled, vapours in the fuel tank escape into the atmosphere. According to researchers, about 0.5% of pumped fuel evaporates at a temperature of 40°Celsius. These vapours contain volatile compounds that are harmful to the environment, and in set weather conditions they react with other pollutants to form smog, known as ground-level ozone.

The green filling station takes these vapours back, avoiding about 99% of these emissions.

In ENOC’s case, once the vapour is collected, it goes into a central underground tank where it is put under pressure and liquefied into fuel again, resulting in fuel savings in the process. In the first quarter of 2015, the petrol station served on average 2324 customers a day selling an average of 136,380 litres of petrol per day. In 2014, the renewable system saved 30,500 litres of fuel.

Containing the vapours also ensures a higher air quality around the station.

ENERGY & EFFICIENCY 2015

A Dry Car-Wash and Vapour-less Pumps

CHAPTER 03 IMPLEMENTING & OPERATING

road transportation caused 22% of the country’s greenhouse gas emissions in 2013

76

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Among these features are advanced technological devices to contain petrol vapours released (…) into vehicle fuel tanks from the pump

IT’S A FACT Similar to Dubai’s Green Petrol Station, Helios House in Los Angeles is an experimental gas station combining ecofriendly architecture and awareness initiatives for its customers. It exceeds current environmental standards for on-site collection, filtration and distribution of water. A canopy collects rainwater for irrigation and rain and site water are filtered to prevent hydrocarbons from polluting groundwater.

The station is designed to minimise the “heat island” effect, with the roof being landscaped with drought tolerant plants, reducing the need for heating and cooling systems, minimising rainwater runoff, and re-oxygenating the air through CO2 absorption (carbon sink). Further features include 90 solar panels and reused and recycled materials throughout, including recycled glass and stainless steel scraps.

Other state-of-the-art systems include solarpowered lighting, a waterless car-washing system, new waste segregation systems and design upgrades, and sound-reduction barriers to reduce noise pollution in the surrounding residential area. The service station also provides eco-friendly engine oils such as PROTEC and VULCAN Green for consumers, and a unique fuel-saving device called Hicione, which helps to reduce fuel consumption and carbon percentages.

Half of the station’s energy requirements are generated from renewable sources, and the station makes use of solar powered lampposts and LED lights, with a life span of up to 50,000 hours and a low voltage which has the added benefit of reducing the risk of electrical fires. These lamps can be used for up to 12 years. The store stockroom, restrooms and customer waiting room are equipped with motion light sensors.

Sustainable water features significantly reduce water consumption. The service station makes use of sensor-type water taps and two-stage flush systems in the toilets.

These dual-flush toilets are estimated to save an average of approximately 26% more water than standard single-flush low-flow models. The station also recycles car-wash water and provides customers the option of using the waterless car-wash system, which saves water and prevents detergents from polluting the environment with ‘No-Wet’

technology, an all-in-one eco-friendly carwash liquid. Made from natural ingredients, the product contains no petroleum distillates, silicone, abrasives, harmful chemicals or detergents that contribute to pollution. As vehicles are washed, the water, rather than going in the sewage network, is collected in an underground tank and purified for reuse.

ENOC has also equipped the green service station with advanced waste management systems, including a garbage segregation system that provides colour-coded bins for easier recycling and carton compressing to facilitate piling and collection by the appointed recycling company. The furniture in use is made from recycled materials and used lubricant oil is collected into an underground tank and sold to a recycling company. The station also features a centralised vacuum system to support power conservation and reduce waste and noise.

These environmental upgrades, worth about AED3.6 million, are playing a role in reducing the company’s impact on the environment and serve to highlight the commitment ENOC has made to the environment. The station cost 20% more to put together than a regular station and has more than 30 energy efficiency and environmentally focused programmes in place, making ENOC’s effort at creating sustainable eco-friendly practices a positive step in the green direction.

Building efficiency itemised The ENOC Complex, located in Oud Mehta, Dubai, consists of three multi storied buildings: ENOC House - I, ENOC House - II and ENOC House - III, with a total lettable area of 218,425 sq. ft.

building. Based on the payback periods, these measures were then classified into three broad categories, and taken up for implementation in stages to increase the buildingsâ&#x20AC;&#x2122; efficiency. The essence of s uccessful energy management lies in a regime of total control and the optimised operation of a facility.

By Sachith Kumar. K. V.

The road to energy management began with the initial benchmarking of utility consumption and trend analysis of all equipment in the ENOC Complex. This was followed by determining conservation measures for various aspects of utility consumption, the costs involved for the implementation and an estimation of the payback period for each

ENERGY & EFFICIENCY 2015

Birdâ&#x20AC;&#x2122;s View on Our Buildings

CHAPTER 03 IMPLEMENTING & OPERATING

78

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Total Buildings Integration Integrating the measures into the three buildings was the greatest challenge we faced, since these buildings were constructed at different time periods and the technology used back then was primitive and entirely different from one another. In 2012 / 2013, we implemented major upgrades on all three buildings and integrated the buildings with one BMS system centrally controlled from one location. The aim was to reduce energy consumption, reduce the cost of utilities, optimise the efficient use of mechanical equipment and increase the lifespan and reduce the lifecycle costs of the equipment. ENOC has taken consistent steps towards energy management, ranging from â&#x20AC;&#x153;quick winsâ&#x20AC;? to fully automating and integrating the operations of the three buildings in the ENOC Complex.

Salient points: Installation of Chiller Plant Manager Conversion of 3 port valves to 2 port valves on the chilled water for AHUs and FCUs Installation of VFDs on chilled water pumps, AHUs and exhaust fans Replacement of HLV lamps with LED lamps Optimising the operation of chillers, pumps, AHUs and lights through BMS. Adopting best practices Future plans Installing Green Building Monitor (GBM) Informative display system for employees and visitors Monitoring of building efficiency Demonstrate commitment to sustainability Replacement of existing chillers in ENOC house - I Toilet upgrades in ENOC - I and II - as well as installing LED lights, sensor taps and waterless urinals Acquiring LEED EBOM certification Replacement of office lighting with LED lights Installation of solar panels over car park shades Staff accommodation retrofits to reduce the cost of utilities and increase efficiency

2014 Cost Savings (AED)

PROJECTED

2014 Cost Savings (AED)

ACHIEVED

171,391.22

381,134.24

CHAPTER 03 IMPLEMENTING & OPERATING

ENERGY & EFFICIENCY 2015

ENOC House - I Composition Commissioned September 1996, the building was equipped with a HONEYWELL XBSI BMS system that had LonWORKS communication protocols. Air-conditioning comprised three YORK reciprocating chillers each with a capacity of 198 tonnes, 279 FCUs, and other similar equipment.

The building underwent complete refurbishment in 2014 with the installation of a new Siemens BMS (Building Management System) system, and the following energy saving measures were implemented.

Measures Conversion of 3 port valves to 2 port valves for the three AHUs and 279 FCUs Installation of butterfly valves with designed control logic on the chiller lines for the three chillers to sequence operation depending on the cooling load required Conversion of the typical constant flow of chilled water to variable flow by installing Variable Frequency Drives (VFDs) for the chilled water pumps to control the flow of chilled water supplied to the building based on the demand load. This reduced the operation and load on the chillers Conversion of the typical constant speed starter of all Air Handling Units (AHUs) with variable drive starters to control the airflow Installation of VFDs for the exhaust fans in the basement car park, controlled by Carbon Monoxide (CO) sensors Optimising the operation of the three Air Handling Units (AHUs) supplying the offices through BMS programming Installation of electrical monitoring units to record power consumption Installed chiller plant manager to control the chiller operations for better analysis and to offer greater control on the compressor loading

Optimising the operation of chillers and chilled water pumps during non-working hours based on temperature adjustments and schedule Optimising the operating hours of lobby lights by modifying the operating hours using existing timers Optimising the operating hours of lifts by reduced the numbers of lifts in operation after office hours Switching 32 50W HLV fixtures to 7W LED fixtures inside lifts Replacement of 60W GLS lamps with LED fixtures

SACHITH KUMAR. K. V. FACILITIES MAINTENANCE COORDINATOR Mr. Sachith has been employed with ENOC’s Admin Services & Facilities dept. for the past 14 years, with 21 years’ experience overall in the FM field, in both operational and management areas.

Replacement of 1025 units of 50W HLV fixtures with 7W LED fixtures Replacement of CFL lamps with LED lamps in external car park areas Optimisation of flow rates in wash basins by installing 90 aerators Installation of electronic sensor operated wash basin taps Displacement bags in WC flush tanks – 74 units Utilisation of AC Condensate Water for irrigation

80

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

ENOC House - II

ENOC House - III

Composition

Composition

Commissioned in 2001, the building was equipped with a SIEMENS Desigo Insight system based on BACnet communication protocols. Airconditioning comprises three Carrier air-cooled screw compressor chillers rated at 171.6 tonnes each. Zonal control is obtained through 279 Variable Air Volume (VAV) units.

Commissioned in December 1992, the building underwent a complete MEP and HVAC upgrade in 2012. However, the existing YORK air cooled reciprocating chillers, (each of 114 tonnes) have been retained, though the condenser coils were replaced and major overhauling was done on the compressors to enhance the lifecycle of the chillers for another 10 years.

The building underwent complete refurbishment in 2014 with the installation of a new Siemens BMS system, and the following energy saving measures implemented. However, unlike house I, the AHUs were installed with VFDs and the chillers with butterfly valves during the commissioning of the building.

Measures Conversion of 3 port valves to 2 port valves for the 6 AHUs and 12 FCUs Conversion of typical constant flow of chilled water to variable flow by installing VFDs for the chilled water pumps to control the flow of chilled water supply to the building based on the demand load. This reduced the operation and load on the chillers Optimising the operation of the AHUs supplying the offices through BMS Installed chiller plant manager to control the chiller operations for better analysis and achieving greater control of the compressor loading Optimising the operation of chillers and chilled water pumps by switching chillers off through the BMS. The parameters are set to have 2 chillers operating at daytime and 1 at night, while the set temperature is 7 degrees during the day and 10 degrees at night Replacement of 429 50W HLV fixtures with 7W LEDs

Measures Barring the chillers, all 15 AHUs on the floors were replaced New pre-insulated ducts with VAVs were designed and installed New BMS along with lighting controls installed Replaced all lobby and common area lights from HLV lamps and CFL lamps with LED lights The fire alarm system was standardised to a GENT 34000 digital, fully addressable system Emergency lighting with a battery backup were installed The 3 elevators underwent complete software and hardware upgrades

Installation of 18 occupancy sensors for urinals Installation of electronic sensor operated wash basin taps

ENOC Complex Electricity Consumption in kWh 1,000,000 800,000 600,000 400,000 200,000 0

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

2013

502843 466637 452978 550984 617285 716888 829316 931708 875965 789291 621288 462274

2014

417942 359845 344623 465580 568174 670571 765657 839501 808925 743026 581083 459260

WE SAY THANK YOU TO Mr Khalifa Al Qaizi, Sr. Manager â&#x20AC;&#x201C; Admin Services & Facilities for his great support towards improving building efficiency and implementing energy saving measures and Ms. Vandana Sarath, Facilities Operation Coordinator for her immense support towards these efforts.

CHAPTER 03 IMPLEMENTING & OPERATING

Lighting accounts for a large percentage of all business related energy consumption.

Any reduction in the energy utilised by lighting puts a dent in overall consumption without cutting back on output. In awareness of this, Horizon Emirates Terminals found opportunities within their terminal periphery lighting systems for considerable savings.

Horizon Emirates Terminals operates two terminals in Fujairah: Horizon Emirates Fujairah Trading Terminal (HEFT) and Horizon Emirates Fujairah Distribution Terminal (HEFD). The HEFT terminal started operations in 2008 and the external lighting requirement at this terminal is met by 132 high-pressure sodium vapour lamps of 400 watts each. These lights operate an average of 10 hours per day throughout the year and the total energy consumption for these lights was calculated as 192,720 kWh per year.

The ENOC Engineering Team in consultation with the HETL project team, designed and installed solar LED lighting for the new terminal HEFD, while the HETL Project Team

were responsible for the cost estimation and the HEFD Maintenance Team have continuing responsibilities in maintaining the system.

HETL installed 33 solar powered LED lights in the new HEFD terminal to light the periphery.

LED lights are up to 80% more efficient than traditional lighting such as fluorescent and incandescent lights. 95% of the energy in LEDs is converted into light and only 5% is wasted as heat, compared to fluorescent lights which convert 95% of the energy to heat and only 5% into light. LEDs also last 20 times longer than a standard bulb. LED lights draw less power than traditional lighting, and with solar LED lights, this consumption is non-existent.

Each of the lighting units installed in the HETL project is fitted with a high-efficiency fixture of approximately 7,000 lumens lighting level and a colour temperature of 5,700K. The lights are installed at a height of 7.5 metres and at a distance of 10 metres each. The average lux level result is 9.6 lux with a minimum of 3 to a maximum of 15.8 lux.

The terminal uses diesel-operated generators for power generation, with the consumption rate of diesel being 0.46 liters per kWh. Considering the total diesel consumption per year for generating power to light the periphery lights at the sister terminal of the same area is approximately 74 metric tonnes with an average cost of USD 74,000, this project generated the equivalent savings of USD 74,000 per year in terms of operating costs, as well as reducing the environmental impact of carbon emissions.

By Kasirajan Saravanan & Manoj Sukumaran

Plug Into the Sun

Photovoltaic replacing diesel generators to light up terminals in Fujairah

STATING& ENERGY ENOC EFFICIENCY 2015

Each of the lighting units (â&#x20AC;Ś) is fitted with a highefficiency fixture of approximately 7,000 lumens lighting level and a colour temperature of 5,700K.

82

By Priyalal Liyanage

Fine Tuning the Procurement

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Sustainable procurement guidelines ensure best-in-class Sustainable procurement is a huge part of ensuring the success of ENOC’s energy and resource management (E&RM) strategy. As a high profile matter for businesses today, it can help save money, reduce waste, improve competitiveness and solidify ENOC’s reputation as an exemplary sustainable and responsible oil and gas company.

The standard procurement process at ENOC was established in January 2013 and perfectly aligns with ENOC’s E&RM policies within a smooth timeline. The process for procuring any energy efficient product or service begins with the procurement and contracts (P&C) drafting a list of suppliers interested in bidding for a particular contract. Once the end-user and EHS team prequalify the bidders, the contracts are outlined, negotiated and approved by the P&C department and ENOC’s management. These products and services are then put in place, and we evaluate its performance, noting any lessons learnt from the implementation of energy efficient measures across our operations.

In the case of a new E&RM procurement, the P&C department share information related to products and service providers from the market and arrange technical presentations and obtain trial samples for review.

The safety of all products and services are compliant with the guidelines established by ENOC EHS. Product evaluation and testing is not in the P&C department’s remit, but in order to ensure that only the best equipment and services are selected, all products undergo thorough inspection, commissioning and testing procedures carried out by the end-

CHAPTER 03 IMPLEMENTING & OPERATING

user material-receiving personnel together with EHS. Energy efficient services uphold the highest standards through training from EHS personnel, work planning, the issuance of relevant permits, and so on.

Most recently, we were involved in procuring LED lighting at various ENOC facilities. Based on our extensive research, we have concluded that the electricity used over the lifetime of a single incandescent bulb costs five to ten times the original purchase price of the bulb itself. Additionally, LED bulbs last up to ten times as long as compact fluorescents, and far longer than typical incandescent lights. Since LEDs do not have a filament, they are not damaged under circumstances when a regular incandescent bulb would be broken, making them a cost-effective long-term solution that is resilient to wear and tear. In terms of energy efficiency, LED bulbs produce only 4% of the heat of incandescent bulbs, reducing the air conditioning load for our facilities.

They also use two to 17 watts of electricity per unit, making them energy efficient and cost effective. Although LEDs are initially expensive, the cost is recovered over time through these savings.

In this context, we tendered a bid for replacing all our lighting units to LED luminaires to a

few reputed companies and received many competitive offers. After testing sample units, we made the switch and expect 8-9 months payback period for the investment.

On another requirement, a new product supplier was introduced to study the plant’s efficiency and introduce process control improvements to save motor electricity loads. The service provider carried out a detailed study and tests. Once we receive the results from the end-user and if it is successful, the P&C department can introduce similar suppliers from the market on similar applications and select more technically and commercially competitive systems for other end-user locations.

ENERGY & EFFICIENCY 2015

It is our responsibility to source new technology, new suppliers of operationally efficient equipment and services

While the P&C department is involved in securing and implementing all ENOC purchases, we are not involved in evaluating the performance of these measures unless they are directly employed for energy and resource efficiency as a goal. As part of the E&RM technical team, it is our responsibility to evaluate the performance of operationally efficient equipment and services to achieve ENOC’s goals for a smooth and streamlined process with minimal wastage of energy and other resources.

PRIYALAL LIYANAGE PROCUREMENT CONTROLLER PROCUREMENT & CONTRACTS DEPARTMENT (P&C) Mr. Liyanage holds an MBA and MCIPS in Supply Chain Management. He has over 20 years’ procurement experience in onshore and offshore oil & gas projects. His current responsibilities include product, technology and supplier sourcing and the evaluation and development of E&RM projects.

84

By Fahad Askar

A Global Footprint

ENERGY & EFFICIENCY 2015

FAHAD ASKAR DIRECTOR AND COO TERMINALS & OPERATIONS Mr. Askar has a BCs in Mechanical Engineering from Higher Colleges of Technology (UAE).

He has over 19 years of experience in the Oil & Gas sector.

In 2012, he was assigned Director & COO of Terminals, directly managing the network of HTL fuel farms/terminal facilities.

THE STORY SO FAR

A holistic approach to energy and resource management encompasses ENOCâ&#x20AC;&#x2122;s overseas operations

Horizon Djibouti Terminals Limited (HDTL)

While ENOCâ&#x20AC;&#x2122;s UAE operations are required by regulations to optimise the use of electricity, water and fuel, no such regulations exist in overseas locations. Nevertheless, in order to standardise rules and regulations across entities, ENOC has made it mandatory for overseas units to also address energy and resource use. To enable this, Horizon Terminals Limited (HTL) nominated energy technicians at all international terminals to champion energy initiatives following formal energy management training in Dubai. Here, we describe the energy saving projects planned and implemented by two overseas units, Horizon Tangier Terminals SA (HTTSA) and Horizon Djibouti Terminals Limited (HDTL).

At HTTSA, electricity consumption in 2013 was more than 3 million units and cost approximately EUR 330,000. Accordingly, a decision was made to analyse electricity use and implement conservation measures.

The analysis indicated that the bulk of electricity use was for heat tracing of the two 3-kilometre long jetty lines for loading furnace oil (FO) to ships. Due to high viscosity, FO needs to be heated to enable pumping over large distances; hence, electrically heated wires are used.

The operational personnel tasked with the electricity reduction project recognised that FO stored in the tank was already heated by heat generated in a diesel-fired furnace.

A study revealed that if the temperature to which the FO in the tank was heated was raised by a few degrees, the electrical heat tracing could be eliminated once the flow in the pipeline was established. Hence the procedure for pumping FO was changed, reducing the electrical heating time from about 15 hours to half an hour. The investment required was negligible, yet the savings were extensive. This project was implemented in March 2014 and electricity consumption reduced by 790,000 units in 2014 to 2.2 million units, as opposed to the 2013 figure of 3 million units. This 26% reduction of total electricity consumption results in savings of approximately EUR 87,000 per year.

In 2014, following personnel training, HDTL carried out a detailed energy-use analysis and identified two areas where savings could be achieved with reasonable investment and payback periods. The two opportunities identified were Variable Frequency Drives (VFD) for pumps and LED lights for outdoor lighting.

Horizon Morocco Terminals

The design of the terminal is such that the same pumps are used for ship loading and tanker truck loading. These pumps are too large for the tanker loading service, leading to inefficiencies during tanker loading.

Installing VFDs on the pump motors allows higher efficiencies during tanker truck loading and reduces overall pump consumption by 10%. The resulting savings amount to 156,000 units or USD 54,000 per year for an investment of USD 180,000, with a payback period of 3.3 years.

Created as a result of amalgamating ENOC’s terminals under a single operational umbrella, Horizon Terminals Ltd (HTL) remains as one of the company’s five main business streams, along with its upstream, supply and trading, marketing and retail, and shipping operations.

As a vital part of ENOC, one of HTL’s main responsibilities is to provide liquid bulk storage services to manage mounting energy requirements in the foreseeable future. This places a lot of responsibility on HTL to ensure resource efficient and safe operations across its sites.

Horizon Emirates Terminals Limited’s (HETL) group of four terminals in UAE that are wholly owned by ENOC have a dedicated energy and resource management (E&RM) committee which brings employees and management together in a cooperative effort to promote energy and resource conservation initiatives in the workplace. The committee’s main responsibility is to develop and maintain a long-term plan to ensure that all relevant resource management practices and projects

Terminals on the Horizon

A practical example for integrated collaboration in E&RM

ENERGY & EFFICIENCY 2015

By Kasirajan Saravanan & Manoj Sukumaran

CHAPTER 03 IMPLEMENTING & OPERATING

The second project, involving the replacement of existing lights with LED lights is even more rewarding. The cost of this project is USD 100,000, projected to result in savings of 405,000 units or USD 141,000 with a payback period of less than a year.

The VFD project will therefore result in savings of 6.5% and the LED project will save 10% of total electricity consumption, totalling an overall reduction of 16.5% when implemented. Implementation is scheduled to start from 2015.

86

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

are compliant with ENOC’s GEHS guidelines and manuals. Committee members are tasked with many responsibilities, starting with reviewing each E&RM project proposal to guarantee that the most viable projects are sent through to management for approval.

The HETL E&RM Committee shoulders many duties, such as developing a detailed plan for baseline data collection, benchmarking analysed data to mark the business unit’s performance, hand-picking the most feasible quick-win and long-term strategic E&RM projects, and finally monitoring the results. In addition to these internal actions, the committee also meets every month.

The internal meetings are streamlined to focus primarily on the results of energy audits run across each site of operations. Reviewing energy policies, objectives and existing programmes, the meetings also outline the results of ENOC’s GEHS audits to help us better understand our performance levels. These meetings encourage progress, acting as an open platform for members to share suggested recommendations for improvement. In the interest of transparency, the members also share status updates on where the business unit stands in terms of reaching its objectives and the progress in terms of corrective actions that may be underway. We are always reminded of the bigger picture: ENOC’s extensive E&RM strategy.

This kind of transparency helps us flag any resource requirements based on each project’s level of completion and timeline.

At the helm of the committee sits the Technical Manager, who is the Chairman of the Steering Committee and is responsible for the smooth running of the committee.

The Secretary is the Senior EHS Compliance Officer, responsible for day-to-day activities.

The rest of the committee handles a range of roles, from proposing various energy resource conservation ideas from their respective departments and technically reviewing submissions to preparing quarterly updates for the rest of the company.

Horizon Emirates Fujairah Distribution Terminal (HEFD) is a prime example of the HETL E&RM Committee’s hard work. Even though this terminal had not yet been fully commissioned, several energy conservation initiatives, such as LED lights and onsite solar panels, were implemented during the project phase because of their inherent long-term benefits for operational efficiency.

MAINTENANCE & PROJECTS MANAGER, HJATL MAINTENANCE - DEPARTMENT

Another instance of our continual efforts is the recently commissioned Horizon Emirates Jebel Ali Petroleum HEJP Terminal. Since all the necessary initial energy resource conservation measures were implemented onsite during construction, the process of identifying further conservation efforts has become more arduous.

Mr. Saravanan has over 20 years hands-on maintenance and project experience in petrochemicals, LPG plants and oil and chemical terminals. He is a member of the ENOC E&RM Technical Committee and spearheads the energy conservation initiatives of all four HETL Terminals.

In the interest of sustaining our efforts, we are planning to implement measures for two HETL Terminals in a phased manner. This will enable our operations and maintenance teams to gain experience that can further spur fruitful and creative conservation ideas.

KASIRAJAN SARAVANAN

MANOJ SUKUMARAN EHSSQ MANAGER Mr. Sukumaran is a NEBOSH-certified HSE professional. He has over 20 years experience in areas including process operations, asset utilisation, R&D and QHSE. He is a member of the ENOC E&RM Technical Committee and drives the energy and resource management initiatives at HETL terminals.

The HETL E&RM Committee is impassioned to continually review all possibilities for energy conservation and accurate measurement techniques, always with ENOC’s larger strategic direction in mind.

IT’S A FACT Horizon Terminals Limited (HTL), the wholly-owned subsidiary of Emirates National Oil Company, builds and owns storage facilities throughout the UAE, amongst them a facility in Fujairah with a storage capacity of over 240,000 cubic metres.

MONITORING, IMPROVING AND COMMUNICATING

CERTIFICATIONS, AUDITING, AWARENESS CAMPAIGNS, AWARDS, ETC.

By Alia Ali Busamra & P. Radhakrishnan

Regular Health Check Ups for Efficiency

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

A detailed auditing process and customised scoring methodology enables ENOC to track progress against its goals Auditing is an independent, objective assurance activity designed to add value and improve the organisationâ&#x20AC;&#x2122;s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.

In light of that definition, the Energy and Resource Management (E&RM) audit is conducted to ensure that sites comply with the ENOC E&RMS Compliance Review Manual (GEHS/M/20) to determine the performance of the energy management system within the business units and achieve improved energy efficiency and resource conservation in a consistent and sustainable manner. The frequency of conducting this type of audit is every two years.

It is worth mentioning, that ENOC adopted the concept of an E&RM system before relevant standards such as BS EN 16001 and ISO 50001 came into existence. The main elements of ENOCâ&#x20AC;&#x2122;s energy and resource management systems align with those entailed in the BS EN 16001 and ISO 50001 standards, including energy and resource management policy, energy and resource efficiency planning, implementation and operation, checking, monitoring and improvement and the management review.

The E&RM system compliance review or audit forms part of the EHSQ Compliance Plan. The compliance review/audit usually takes about 3 to 5 days to fully complete depending on the location and complexity of operations of the business unit.

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

ENERGY & EFFICIENCY 2015

The document review and field verification are scored separately to give equal importance to plans and actual implementation

90

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

At ENOC, the audit process is generally a nine-step procedure:

Notification

The business unit is informed of the upcoming audit based on their EHS annual plan. The EHSQ Compliance Review Team will send the business unit the preliminary checklists for document and field verification review so that the business unit can perform a self-assessment and ensure the availability of the required documents.

Planning

ALIA ALI BUSAMRA SENIOR EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Ms. Busamra holds a B.Sc. Degree in Chemical Engineering and a M.Sc. Degree in Environmental Sciences. She is Coordinator of the ENOC Energy and Resource Management Steering Committee and Secretary of ENOC Energy and Resource Management Technical Committee and member in Dubai Carbon Abatement Strategy Technical Committee.

In the planning stage, the EHSQ Compliance Review Team will review the information received from the Business Unit and the Lead EHSQ Compliance Officer will prepare the Terms of Reference (TOR) document indicating audit objectives, scope, plan, timing, duration, detailed schedule for opening and closing meeting, standards, compliance review methodology, proposed EHSQ Compliance Team to conduct the audit, reporting, close out of corrective plan, specific element assignment, and engagement risk assessment. The audit scope covered in the TOR will be mutually agreed between both parties and signed by the principal parties.

Opening Meeting

The opening meeting includes senior management, auditee department/section representatives and any administrative staff that may be involved in the audit. During this meeting, the scope and timeframes of the audit are discussed and any concerns can be addressed.

Document Review and Field Verification

In this stage a comprehensive review of documents related to each element of the E&RM system is conducted. This is followed by field verification of the stated plans and actual implementation of the business unit’s commitments. This review includes interviews, observations, reviews, and analysis of relevant procedures and associated documentation as well as the Element Compliance Review Document and Field Verification checklists.

Scoring The third stage involves assigning a score on a scale of 0 to 4 for the business unit’s level of compliance in each element’s expectation. The scores and criteria are described as follows: Score Criteria

0

1

2

3

4

NA

Nothing in place

Partially in place

Mostly in place

In place and working effectively

Best in class

Not Applicable

The document review and field verification are scored separately to give equal importance to plans and actual implementation. Scores are colour coded for easy comprehension of performance at a glance.

Overall Expectation Scores 4

3 2

5.1 5.2 5.3

Planning

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10

Policy

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15

0

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8

1

1.1 1.2 1.3 1.4

Score (0 to 4)

ENOC adopted the concept of an E&RM system even before relevant standards such as BS EN 16001 and ISO 50001 came into existence

In this example of a business unit was assigned the target of achieving a score of 3 by 2013 illustrated through the weighted average of a combination of document review and field verification for each of the E&RM System’s elements’ expectations.

Implementation

Checking

Review

Expectation Number

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

Finally, the following figure illustrates the totalled scores and the overall average score obtained to ascertain the level of compliance of the business units.

ENERGY & EFFICIENCY 2015

Legends:

Overall Element Scores

0

Awareness Building

1

Programme Development

2

Implementing

3

Management system

4

Continually Improving

Individual Scores and Average

4 3 2 1 2010

0

2013

2010

Policy 2010 Average

2013

2010

Planning 2013 Average

2013

2010

Implementation Elements

2013

2010

Checking

2013

Review

Communication Throughout each step of the audit process, the Compliance Team keeps the auditee department informed and will give opportunities for discussion on issues noted and possible solutions.

Closing Meeting

A closing meeting is held so that the auditee department can discuss the audit’s findings and review management’s response. The Principle Coordinator should ensure that the Senior Management and auditee department/section representatives are present during this meeting.

Report and Distribution

The report consists of several sections including, for example, an executive summary, the E&RM System compliance team, timing and the cost of the E&RM compliance review/audit, a corrective action plan, elements’ strengths and areas for improvement, expectation scores, and much more. The report is reviewed and signed by the Chief EHSQ Compliance Officer.

Follow up and Tracking

The business unit shall review the report (results and findings) and prepare a Corrective Action Plan (CAP). The principal auditee shall advise the Chief Compliance Officer when the Corrective CAP has been finalised, which should be within 4 weeks of submission of the report.

Simultaneously, the audit findings are entered into customised software called “Audit Tracker”.

The system generates a notification mail and reminders to the auditee for taking corrective action with a target date for completion. The auditee updates the system with corrective action, which triggers a notification to the originator for review. On acceptance by the originator the action is closed.

By 2013, our E&RM system had matured enough to conduct follow up audits. The introduction of E&RM KPIs has helped the business units to improve their E&RM System. In total, 14 business units were subjected to follow up audits and it is with pride we state that all of them showed improvements in their performance levels. Four of our business units have reached the target level of 3; meanwhile, eight other units have almost achieved that level. Another four more business units have been brought in under the ambit of the E&RMS. Business Units

3

CHIEF EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY) Mr. Radhakrishnan has a BTech and MS degree in Chemical Engineering. He has over 30 years’ experience spanning areas such as research and development, operations, QHSE and energy in manufacturing, chemical, petroleum and power industries.

2

-

-

m

SA

pl

ex

AS G

Co

N

C

LI O EN

Target Score

-

-

o to

pr

el je

Au

Ta s

ils ta Re

-

2014 Average Score

ED

EA

P M EL O

AS EM G

SA H TT

H DT L

L AT T

PL

2013 Average Score

CY

Baseline Average Score

H ST

T ES H

JA TL H

L EI

AS D

U

G

L

0

-

1

EP C

Average Score

4

P. RADHAKRISHNAN

92

By Ahmad Dardas

Locking Out The Sun

ENERGYSTATING & EFFICIENCY ENOC 2015

THE STORY SO FAR

A transparent nonflammable water based liquid as a magic weapon against heat Sunlight is the main source of energy for the planet. Sunlight at the top of the Earth’s atmosphere is composed (by total energy) of approximately 50% infrared light, 40% visible light and 10% ultraviolet light. In summer months, the heat intensifies due to the shorter distance of the sun from the Earth.

AHMAD DARDAS TASJEEL TECHNICAL SUPPORT MANAGER Mr. Dardas graduated from the University of Engineering & Technology, Lahor-Pakistan as a Mechanical Engineer.

He has over 25 years’ experience in the automotive field. He started his career with TASJEEL as a site manager in 1999.

There have been a number of solutions to minimise this heat increase, but they have been limited to the use of double glazing, tinted glass, and the application of films which are not particularly effective. In addition, increasing air-conditioning capacity can counteract the effect of the heat, but this consumes energy. Tasjeel Sharjah Auto Village has an extensive registration hall and the roof is covered with a 330-metre square glass skylight. During summer, the skylight glass gets extremely hot and the cooling inside the registration hall is insufficient.

The light itself is not the cause of heat, but rather it is the amount of infrared that it carries. The ideal solution is therefore to be able to reduce the infrared but maintain full light. A solution was implemented in October 2014 by a team comprising Ahmad Dardas, Technical Support Manager; Alia Busamra, Senior EHS Compliance Officer (Environment & Energy), ENOC-EHS; Hamdan Al Doukhi - Senior EHS Engineer, EPPCO-EHS; Charmaine Mendez -EHS Inspector - Retail, EPPCO-EHS; Shereen Al Sayed -Senior

Procurement Analyst, ENOC-P&C; and Masood Ahmed -Purchase Coodinator, ENOC-Tasjeel Operations.

The answer was to use Thermopaint, a hightechnology Nano product. Nanotechnology is the manipulation of matter on an atomic, molecular, and supra-molecular level and in this case, the result is a product composed of a special transparent nonflammable waterbased liquid applied in two coats on the surface of the glass. The material adheres to glass in a process that enables it to become part of the glass’ surface. This characteristic allows the material to function over an extended period.

Outdoors

Indoors

50 Inf % r

are 40 dl Vis % igh 10 ible t % Ult ligh rav t io let

lig

ht

10 degrees heat reducein 90% of the visible light

Thermopaint

The thermal paint was able to reduce the heat in the registration hall by 10 degrees, which will help to reduce the power bill by an estimated 15 - 20%. The vendor will install a monitoring system to determine the real value of the savings in financial terms.

Meet the ENOC Energy Award and the Suggestion Scheme Participation and engagement programmes play a significant role in energy and resource management and contribute to substantial savings.

They also encourage the involvement of stakeholders at all levels of an organisation. ENOC believes that taking a participative management route will create a sense of ownership and pride among employees and will motivate them to increase productivity in the field of energy and resource management in order to achieve the desired goals.

In the past few years, ENOC has gravitated towards energy and resource management and sustainability initiatives to achieve maximum effectiveness. This was part of an overall strategy for future growth and to stay in line with the Government of Dubaiâ&#x20AC;&#x2122;s strategy towards developing a green, lowcarbon economy. These efforts have been appreciated not only by peers but also by the Dubai Supreme Council of Energy (DSCE).

ENERGY & EFFICIENCY 2015

Everyone Onboard!

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

The ENOC Energy Award was introduced in 2012. The award is a small step in creating a platform for the recognition of business unitsâ&#x20AC;&#x2122; and individual efforts in achieving energy and resource conservation goals.

It is anticipated that such recognition will boost the efforts of business units to achieve the optimum utilisation of resources. In addition, it will contribute to achieving the goals set in the Dubai Integrated Energy Strategy 2030 by increasing awareness and recognition of these issues.

94

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

An evaluation team, comprising Eng. Waddah Ghanem, Director of Group EHSQ Compliance Directorate and Chairman of this award; Eng. P. Radhakrishnan, Chief EHS Compliance Officer (Environment and Energy) and Member; and Eng. Alia Ali Busamra, Senior EHS Compliance Officer (Energy and Environment) and Member, has evaluated all of the audit reports, business plans, conservation initiatives and individual contributions and efforts to determine a list of winners across different categories.

for the sake of transparency, the criteria and evaluation process are posted on the Group EHSQ Compliance Portal

In the past few years, the Group EHSQ compliance team has been conducting baseline energy and resource management audits for 17 of ENOC’s business units in line with the Energy and Resource Management System Manual (GEHS/M/20). In 2013, ENOC completed auditing almost all of its business units. Although most of the business units did not have a formal independent energy and resource management policy or system in place, the observation was that many procedures, policies and practices exist, resulting in significant efforts in the introduction of initiatives towards reducing energy and resource consumption, thus saving costs and contributing towards achieving ENOC’s mandated KPIs. ENOC understands that these efforts must be recognised in order to encourage creative thinking and positive contributions towards efforts in energy and resource management.

Given this, the main objectives of the ENOC Energy Award are:

Transparency and accountability are central pillars of good governance. Therefore, for the sake of transparency the criteria and evaluation process are posted on the Group EHSQ Compliance Portal.

To further drive employee engagement, the ENOC Innovation Scheme was introduced in 2012. Innovation is considered to be the successful implementation of value-adding ideas within ENOC, to better function and implement the overall business strategy.

This scheme allows employees to submit suggestions and ideas and be rewarded for their contributions. By submitting a suggestion, the employee is recognised at a group level and is rewarded for directly contributing to ENOC’s development once the idea is implemented. The submitted suggestions and ideas are studied and evaluated and if the idea meets the requirements and objectives of the programme and is deemed to be feasible, a project charter is established and it is implemented. Once an idea is implemented the employee is offered a reward.

To recognise and promote pioneering contributions in the field of energy and resource conservation To recognise outstanding achievements in the field of energy and resource conservation across ENOC’s business units To support and encourage individual efforts in achieving higher goals in the optimisation of energy and resource utilisation To work towards establishing a system in conformance with ISO 50001 so that certification can be obtained at a future date if required

The ENOC Innovation Scheme recorded more than 1,000 suggestions in 2013 and the implemented suggestions led to improvements in operational efficiency and profitability. In fact, the introduction of this scheme within ENOC has complemented the E&RM Technical Committee’s efforts. This has encouraged staff members to take ownership of implementation and be rewarded through the scheme.

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

ENERGY & EFFICIENCY 2015

In 2014, two projects were rewarded. One was the installation of Variable Frequency Drives (VFDs) in EMGAS which resulted in a 40% reduction in electricity usage, and the other is the use of a Clean Drive product in EPPCO Distribution for improving the fuel efficiency of the tank truck fleet which resulted in more than AED 600,000 in savings.

Point of View IT’S A FACT The awards are being given to recognise the efforts at two levels: for business units as team and for the efforts of individuals.

The business units are recognised across eight categories:

•

Category A: Highest score achieved in the Energy and Resource Management System audit

•

Category B: Most innovative efforts and initiatives taken for energy and resource conservation

•

Category C: Best proactive approach for implementing corrective action plans (CAP)

•

Category D: Most transparent and cooperative information sharing

•

Category E: The best energy initiative to date

•

Category F: The best energy and resource management business plan for the year

•

Category G: The most improved business unit in the energy and resource management system

•

Category H: The best team in implementing energy and resource conservation efforts

Emirates Environmental Group (EEG) has always viewed ENOC as a strategic partner in its campaign to promote sustainability among the economic sectors in the UAE. ENOC’s Energy and Resource Management Strategy and corresponding framework highlights the organisation’s commitment to sustainable pathways of growth and expansion. EEG is delighted to support ENOC in its efforts to increase efficiencies by rationalising resource consumption and recycling solid wastes.

Through such initiatives, ENOC is playing an active role in the country’s transition to a green economy and sustainable growth.

Habiba Al Marashi Chairperson Emirates Environmental Group

Additionally, individual efforts are recognised in the following categories:

•

The most engaged Manager who showed real leadership towards implementation

•

The most active ENOC E&RM Technical Committee member

•

The most active technician involved in E&RM implementation

96

ENOC ENERGY AWARD

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

ENERGY & EFFICIENCY 2015

98

Supercharged Data Management

ENERGY & EFFICIENCY 2015

ITâ&#x20AC;&#x2122;S A FACT The Group EHSQ Compliance Directorate manages all business units under ENOC. It helps establish sustainable solutions for reduced energy and resource consumption and waste generation with the group. It works to provides services to the organisations that add value such as design reviews, audits and procedural reviews. It helps improve the standards of environmental protection through audits, inspections, vetting and training.

The department develops and maintains international standards and best practice guidelines in all aspects of EHS.

THE STORY SO FAR

ENOC has more than 30 active operating units which report data on EHSQ and Energy & Resource use on a monthly or more frequent basis to EHSQ Compliance Directorate.

The data is reported in various formats, mostly Excel and requires extensive effort by the Group EHSQ Compliance Team to collate, validate and pass on to management or governmental authorities in a standardised form. Collating and consolidating the data is a tedious task as units used are different and often there are errors in the data. Therefore, a database platform is required to standardise the reporting, validating data before acceptance and for automatic unit conversion and consolidation.

The main objective of establishing the ENOC EHSQ and Energy Database is to provide a proven web-based, highly configurable single consolidated platform solution that: Automates all ENOC EHSQ Compliance activities as defined in its Integrated Management System (IMS) Manual, procedures, work instructions, forms and Key Performance Indicators (KPIs) Assures ENOC compliance with all requirements of ISO 9001, ISO 14001, OHSAS 18001 and ISO 50001 standards to maintain its certifications Provides ENOC with a solution for having to retrieve or view information on a real-time basis Improves key EHSQ processes such as document management, incident investigation, audits, risk assessment, and environmental impact assessment to meets international best practices Improves effective communication and accountability , timeliness and avoids duplication of data entries The database was developed

by INTELEX Technologies

Charity and community service in the Holy Month of Ramadan and beyond ENOC undertakes a diverse array of CSR events covering various facets of sustainable social and economic development. In addition to supporting charitable causes, ENOC has also been at the forefront in promoting environmental sustainability, empowering disadvantaged and underprivileged individuals, knowledge-sharing sessions, driving awareness on autism, promoting employee welfare and actively partnering in community-oriented events.

ENERGY & EFFICIENCY 2015

Fuelling Wellbeing

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

Clean up Arabia - EDA 2013

In 2014, ENOC rolled out Human Fuel, its most ambitious CSR campaign, by partnering with the United Nations World Food Programme (WFP) and Dubai Charity Association to raise funds to support the activities of the two organisations in addressing global hunger.

One of the key CSR activities of ENOC is the support it extends to promoting community welfare through various activities undertaken during the Holy Month of Ramadan. In the past, ENOC has raised funds for Beit Al Khair Society, The Red Crescent Authority (RCA) and Dar Al Ber Society during Ramadan, while Emirates Gas, as a subsidiary of the company, has joined hands with Dar Al Ber Society to provide 300 disadvantaged families in the UAE with free LPG refills.

ENOC incentivises its employees to take an active part in CSR activities through TarabuT. As part of TarabuT, employees have raised

funds for people affected by natural disasters in other countries, given free First Aid training to the public and held community activities for children with special needs.

ENOCâ&#x20AC;&#x2122;s highly successful Challenge Programme, in partnership with the Rashid Pediatric Therapy Centre and the Community Development Authority, enrolls special needs individuals in a seven-month comprehensive training course.

ENOC has raised funds for Beit Al Khair Society, The Red Crescent Authority (RCA) and Dar Al Ber Society during Ramadan

World Green Economy Summit 2015

100

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

WHAT IS “HUMAN FUEL”?

The United Nations Food and Agriculture Organisation estimates that in 2012, nearly 870 million – or one in eight people in the world - were suffering from chronic undernourishment.

Almost all hungry people live in developing nations. In 2013, ENOC placed special donation boxes across the entire network of ENOC/ EPPCO service stations in Dubai, encouraging motorists to make a donation in partnership with the United Nations World Food Programme (WFP) and Dubai Charity Association. Find out more and make a donation on: https://wfp.org/enoc

HAG

ENOC is also a committed partner in promoting sustainable development. In addition to supporting energy efficiency measures and introducing CNG as a clean and green fuel, ENOC has opened its first green service station in Dubai. The company also undertakes emergency response workshops, conducts environmental competitions among school children to raise awareness among the future generation and takes part in the ‘Clean Up the UAE’ campaign annually.

ENOC has also set up an ENOC Wellness & Social Programme that fosters a sense of belonging within the ENOC family and promotes social interaction outside the office.

Cleanup UAE campaign - EMGAS

In the Spotlight

Over the years, ENOC has demonstrated its thought leadership in undertaking innovative CSR initiatives and was awarded Asia’s top laurel for Best Corporate Social Responsibility Practices at the Asian Leadership Awards; and The Bizz Award, one of the most prestigious business awards world-wide, for outstanding corporate social responsibility practices.

Spreading the word at events in 2014

WETEX

MEFMA

ENOC put the spotlight on its sustainable development initiatives and its advanced technology introductions such as the Vehicle Identification Pass (ViP), a radio frequency identification (RFID)/ and vehicle identification (VID)-based fuel retailing system, at the 16th Water, Energy, Technology & Environment Exhibition (WETEX) 2014 as a strategic sponsor.

MEFMA is a platform where energy partners and players come to share ways they can shape a sustainable environment to further socio-economic development now and for future generations. Alia Busamra, Senior EHS Compliance Officer (Environment & Energy) gave the MEFMA Confex audience a peek into ENOC’s various energy & resource management and energy efficiency initiatives.

ENOC also highlighted its wide array of activities that support environmental sustainability and promote energy use efficiency in line with the Dubai Integrated Energy Strategy 2030 announced by the Dubai Supreme Council of Energy.

Energy Efficiency Essentials Forum More than 50 participants from different organisations including 6 members from ENOC E&RM Technical Committee attended the Energy Efficiency Essentials Forum organised by ABB Automation and Power Technologies in association with the Dubai Supreme Council of Energy (DSCE). This forum was organised to showcase ABB’s energy efficiency technologies used in buildings, industrial processes and utilities so that organisations can use these technologies and apply them in their operations to reduce energy consumption and improve energy efficiency.

Steps on the way to ISO 50001 certification As part of the ENOC Group Management’s drive towards energy conservation, the ENOC Lubricating Oil and Grease Manufacturing Plant LLC (ELOMP) proceeded with the implementation of ISO 50001:2011 for its lubricating oil and grease manufacturing plant.

Mohammad Yunus, Owais Ahmed, Vinoy Skariah, Narendar Bansal, M Raj, Joby Joseph, Radhakrishnan and Alia Busamra were responsible for this project, which saw the ELOMP Quality, Environment, Health and Safety (QEHS) policy revised, incorporating a commitment towards energy management.

To this end, required procedures and work instructions were designed to suit the operational areas and training was provided for staff members to build awareness. An energy management team was constituted to address all issues related to Energy Management System (EnMS).

An energy survey was performed in which significant energy users and a base-line were defined and key energy performance indicators established. After an internal audit

by Group Environment, Health, Safety and Quality (GEHSQ), the DNV were approached for final evaluation and certification, awarding certification for ISO 50001 in June 2013.

This is projected to result in annual savings of AED 52,040 and 93,625 kWh.

ENERGY & EFFICIENCY 2015

ISO in Action

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

Turbo roof ventilators are without powered drives or motors, instead functioning based on wind and ‘escape air velocity’

102

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

OWAIS AHMED EHSQ OFFICER Mr. Ahmed has over 7 years’ experience spanning engineering and oil industry sectors. He currently leads the Environment, Health, Safety and Quality (EHSQ) Function at ENOC Lubricants and Grease Manufacturing Plant, Fujairah.

VINOY SKARIAH MAINTENANCE SUPERVISOR Mr. Vinoy has more than 17 years’ experience in the field of maintenance and projects, and is specialised in lubricant manufacturing processes as well as packaging machinery manufacturing. He is on the ENOC E&RM Technical Committee as the focal point for the Lubricant Plant.

ELOMP also initiated an energy audit with independent consultant Global Engineering for an energy conservation study, which will cover the entire plant operations including: air-compressors and refrigerated air dryers; process pumps; thermic fluid heaters; outdoor lighting; indoor lighting; office air-conditioning; and other significant energy users.

Turbo roof ventilators are without powered drives or motors, instead functioning based on wind and ‘escape air velocity’. As per studies conducted by a third party project team, as part of ELOMP’s Phase 3 expansion six air changes were considered as the base scope.

52 turbo roof ventilators were finalised for installation, fulfilling the requirements.

Continuing in this vein, between September and December 2014, ELOMP noted that powered ventilators were being utilised 24 hours a day, 7 days a week, due to round-theclock functioning of the plant. This consumed almost 75,600 kWh per year costing AED 30,240 in energy bills. These fans were not able to provide the required air changes (six per hour) as per industrial standards and maintenance costs were contributing to expenditure.

This eliminated 75,600 KkWh of power usage annually and was approved as a surewin project, with anticipated savings of AED 30,240 per year (AED 0.40 per kWh to FEWA).

No major maintenance cost is expected as there are no powered drives and the increase in air circulation contributes to improving the environment inside the warehouse. This also means there is less chances of heat related illnesses in plant operators.

To address this issue, a more economical method was introduced to ELOMP’s Energy Management Team by a supplier, with the project championed by Vinoy Skariah, Narendar Bansal and Owais Ahmed along with ENOC’s Engineering & Project Management department. The team studied the use of turbo roof ventilators, with promising results.

This is projected to result in annual savings of AED 52,040 and 93,625 kWh

VFDs and Pressure Transmitters at EMGAS

ENERGY & EFFICIENCY 2015

Gas on The Carousal

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

Emirates Gas LLC (EMGAS) has a welldefined Environment Health Safety & Quality Policy which is embedded in its Business and Operational Policy and incorporates the value of maximising efficiency in the utilisation of assets and resources. One idea, generated in a brainstorming session within an EMGAS Technical Committee meeting, was the introduction of a Variable Frequency Drive (VFD) in LPG cylinder filling.

Prior to implementation of this project, from June 2013 â&#x20AC;&#x201C; November 2013, EMGAS was using a carousal with 18 filling heads for filling LPG cylinders. There are three different capacities of LPG cylinders that are filled in the carousal in batches, using the same pump driven by a constant speed motor . The smaller cylinders complete filling half-way round the carousal, the medium cylinders at one round, and the larger cylinders at approximately one and half rounds.

By Gopalakrishnan Vinod

the hourly energy consumption has been reduced by 30%

104

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

This leads to a variation in the pressure and excess flow is routed back to the main tank using a special pressure-controlled bypass valve. The product that cycles through the bypass control valve doesn’t contribute to the filling operation, yet it consumes energy.

Team members G.Vinod, Maintenance & Technical Services Manager, Alex Korah, Maintenance Engineer, and Chetan Shinde, Electrical & Instrument Coordinator introduced the VFD to address this unnecessary energy consumption. The VFD is a drive used to control AC motor speed and torque by varying motor input frequency and voltage. Around 25% of the world’s electrical energy is consumed by electric motors in industrial applications; hence energy-saving devices such as VFD usage in centrifugal load services are crucial.

At EMGAS, a VFD was introduced in the LPG pump electric motor switch gear and a pressure transmitter was fixed on the main fill line of the carousal. The pressure transmitter communicates the pressure in the LPG fill line to a PLC and a set point for the pressure is set within the PLC based on process requirements. The pressure in the line indicates the number of cylinders being filled, which then allows the PLC to regulate the speed of the LPG pump to ensure that only the required flow is generated. As a result, the operation of the bypass valve is eliminated, resulting in a reduction in energy consumption as it is only the quantity required that is pumped.

This leads to significant energy savings.

During peak production, the hourly energy consumption has been reduced by 30%.

This initiative enabled EMGAS to save nearly 100,000 kWh of electrical energy in 2014 alone.

GOPALAKRISHNAN VINOD MAINTENANCE & TECHNICAL SERVICES MANAGER – EMIRATES GAS LLC Mr. Vinod is a Mechanical Engineer with over 25 years’ experience in the oil & gas industry, specialising in the downstream LPG industry.

He completed the Energy Managers Course from The Energy Institute and steers the Environment & Resource Management Initiatives of Emirates Gas LLC.

Around 25% of the world’s electrical energy is consumed by electric motors in industrial applications

CHAPTER 04 MONITORING, IMPROVING & COMMUNICATING

ENERGY & EFFICIENCY 2015

We Say Thank Youâ&#x20AC;Ś EPPCO Lubricants Car of the Year Award

2014 has been a year full of recognition from our partners. We wish to express our gratitude for the vote of confidence and are looking forward to trying even harder in 2015.

Saeed Khoory is Energy CEO of the Year

ENOC wins Superbrand honour for 9th year

EMGAS wins EPC for Fujairah Bottling Plant

ENOC wins Dubai Human Devpt Appreciation Award

ENOC - Holy Quran Memorisation Award ENOC wins top honour for RFID-enabled ViP fuel retailing service at Ideas.Arabia competition

ENOC wins BDI-LBS competition ZOOM wins Most Admired Retailer Award

106

ENERGY & EFFICIENCY 2015

THE STORY SO FAR

Thank you & Goodbye Whilst we have now reached the end of this report, this surely isn’t the end of the story, in fact ENOC believes whilst it is evident it has taken both great steps and made a significant impact thus far, this is only the beginning of a long and never ending journey towards excellence, efficiency and sustainability. At the heart of what we do is innovation, which is fueled by pure passion for excellence…

I would like to thank the leadership in ENOC under the stewardship of Mr. Saif Al Falasi, the Group Chief Executive Officer. I want to thank both Eng. P. Radhakrishnan and Eng. Alia Ali Busamra for leading this project and the Corporate Communications team, specifically Sawsan Taymoor, Fatma Al-Khaja, Hessa Al Balooshi as well as both Suneer Hydrose and Joby Varghese for their support throughout the project cycle. Many thanks go to Dubai Carbon for their support on this project, and especially Ivano Iannelli, Michaela Neukirch and Mariam Maani.

Of course many thanks and appreciation goes to all the members of ENOC E&RM Technical and Steering Committees, and specifically also to those who co-authored this report.

Until next time…

Waddah S. Ghanem Al Hashemi Acting Executive Director, EHSQ & Corporate Affairs Director, EHSQ Compliance Chairman, E&RM Technical Committee

Having adopted a scientific E&RM policy in 2008, ahead of the launch of ISO 50001, ENOC’s approach is aligned with the goals of the Dubai Integrated Energy Strategy, which are to reduce energy demand by 30% by 2030 and to diversify the Emirate’s energy mix. To this end, we have not only been focusing on increasing our energy efficiency but we have also rolled out ambitious initiatives including the opening of the Middle East’s first green service station and the use of cleaner, greener compressed natural gas as an alternative automotive fuel.

Saif Humaid Al Falasi Chief Executive Officer ENOC

Proudly produced by:

‫ﻛﺮﺑــــــــــــﻮن دﺑــــــــــﻲ‬ DUBAI CARBON

This report has been produced on 100% recycled paper.