A pr il 2017 • www.energydigital.com
TOP10 offshore windfarms Inside the US Department of Energy
A CAN-DO APPROACH TO SUSTAINABILITY
Cooking on gas with Calor Gas’s Head of IT
MAINTAINING POWER: We interview TNB REMACO’s MD Anuar Yusoff
Deliver an enhanced customer experience We can support your business to simplify its IT infrastructure and achieve its strategic objectives on its digital transformation journey. More than 8 million businesses across 170 countries trust us to keep their business ahead of the curve. www.business-solutions.telefonica.com
EDITOR’S COMMENT
ON THE BALL HELLO AND WELCOME to April’s Energy Digital magazine. We kick off this month’s edition with a detailed insight into sustainability at the world’s largest beverage can producer, Ball Corporation. I speak to Sustainability Director Ramon Arratia and European Sustainability Manager Matthew Rowland-Jones about the company’s progress to date, and plans to make the can the sustainable container of choice. Calor Gas is another big player in its field. I caught up with Head of IT Simon Went about how technology is transforming internal and customer facing processes at the company, not least when it comes to customer service. Our focus also turns across the Atlantic to the US Department of Energy, which has embarked on several sustainable building initiatives. Nell Walker finds out about some of the latest programs, which have had the likes of the US Airforce and Navy’s involvement. Be sure to also check out or top 10 offshore windfarms along with other exclusive company insights, this time from TNB Remaco and Analytic Systems. We hope you enjoy the read, please join the conversation @EnergyDigital
Tom Wadlow Senior Editor tom.wadlow@bizclikmedia.com 3
F E AT U R E S PROFILE
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TOP 10 OFFSHORE WINDFARMS
C O M PA N Y PROFILES
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Ball Corporation EUROPE
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TNB Remaco ASIA
Analytic Systems USA & CANADA
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PROFILE
We speak to the US Department of Energy’s Senior Program Advisor Maria Vargas, who for more than three decades has championed sustainable best practice
W r i t t e n b y N E L L WA L K E R
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PROFILE
MARIA VARGAS, SENIOR Program Advisor for the US Department of Energy has spent 32 years working on the preservation of the world’s environment. She began at the Environmental Protection Agency in 1985, battling global warming and the depletion of the ozone layer, before becoming a Brand Manager for ENERGY STAR, the governmentbacked symbol identifying the most energy-efficient products and companies. In 2011, Vargas moved on to the US Department of Energy, and now runs the remarkable Better Buildings Initiative. In the US, about $200 billion a year is spent on running commercial buildings, with another $200 billion on manufacturing facilities, and on average, between 20 and 30 percent of the energy used in those buildings can be saved cost-effectively. The Better Buildings Challenge has been issued to spur businesses into saving that energy, and so the role of Vargas and her team is to 8
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inspire and enable them to join in. “Energy efficiency is a huge opportunity for us, and I think while we’ve made progress, there are a series of persistent and pernicious barriers,” Vargas explains. “Those are far-ranging, and are why we set up the Better Buildings Initiative. It might be a lack of senior management buy-in or incentives, not knowing how to finance change, or not knowing what technologies should be used. Sometimes when an organization does one thing, such as installing energy-efficient lighting, they think their job is done.
NOBODY IS GOING TO COMPLAIN IF YOU USE LESS ENERGY. A KILOWATT DOES NOT HAVE A UNION
AD THE EM U Y SA SW IR AP FOR TE CE AM AC
“The Better Buildings Initiative was borne out of recognition of those barriers, and what it would take to really accelerate the pace of energy efficiency and adoption. It’s built on the leadership theory of change: who in the market is leading the way to understand – or is willing to step up to the challenge of greater energy efficiency – and do so in a meaningful way? Who can manage a 20 percent energy use reduction across their portfolio in 10 years, and is also willing to publically share what they’re doing with others?” Vargas states that while organizations are happy to learn from their government in many ways, they look to their peers when building a strong business case.
Organizational sea change is one of the toughest barriers to break through; changing the way a company views and values the investment of efficiency is too often seen as an extra overhead cost, when in reality, energy efficiency benefits everybody. “People ask why partners join the Better Buildings Challenge and what the benefit is,” Vargas says, “and the most obvious one is the monetary saving. On top of that, these 9
companies are trying to attract the best talent, and the best talent wants to work for organizations that truly care. There are no downsides – nobody is going to complain if you use less energy. A kilowatt does not have a union. “It’s fascinating, seeing what it takes to get an organization to move from being set in its ways to doing something different, and how to make that happen. Some brands are more flexible and adaptable than others, but the potential challenges force you to think differently. Those who think differently are the ones who empower their employees.” The Department of Energy offers a great deal of support to those companies willing to join in with the 10
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Better Buildings Challenge. There is a technical hub available to aid those unsure of which technologies they should invest in, financial advice for those who may be seeking to enable their CFO to think differently, and a service to help track energy usage in order to manage it effectively. The other element to this support is connecting partners with one another, removing the element of competition by opening avenues
WHILE ENERGY EFFICIENCY IS A SERIOUS ISSUE AND VERY MUCH IN THE NATIONAL INTEREST, WE’VE PROVED THAT IT CAN STILL BE ENJOYABLE AND ENGAGING for them to help each other. To illustrate the effectiveness of this, Vargas and her team started the Better Buildings SWAP, which sees two organizations swapping places, learning, and collaborating on ideas. “While we established the importance of sharing information, we were trying to think about how we could prove it in a way that was fun and engaging,” explains Vargas. “Energy efficiency by itself is typically not the most exciting of topics, and yet the reality is there’s a lot of really cool stuff going on. We realized that even if companies were willing to share information, they probably thought they could only share within their own sector. A hospital can only
learn from other hospitals, a grocery store can only learn from another grocery store – that’s not true. “We wanted a way to demonstrate in a fun, interactive way that learning can happen across the market, and eventually we came up with this notion of a swap.” The first series of the Better Buildings SWAP features Hilton and Whole Foods – both giants in their field, one very corporate and one very proud of being the opposite of corporate – swapping places and sharing the details of their organizations in the most open way possible. “One of the Whole Foods team said ‘there’s never been suits in 11
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the kitchen before’. Despite the cultural differences, the lessons each organization took away from the experience were quite profound. That’s why we decided to make more episodes of SWAP, because it illustrates the ‘a-ha!’ moment we want people to have when they think about energy efficiency. We want to show that other people have the same issues as you, and that you’re well-served to figure out how they overcame those issues. While it’s a serious issue and very much in the national interest, we’ve proved that it can still be enjoyable and engaging.” Vargas and her team have reaped the rewards of the SWAP in the form of positive feedback and increased awareness of what she and her team
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are doing. Thanks to an unforeseen degree of recognition – after all, a televised business swap is a highly unusual project for a governmental department to undertake – the first season achieved over 50 million media impressions and 300,000 YouTube views. Season two – a swap between the US Airforce Academy and the US Naval Academy – has over 1.5 million views. The team has already wrapped on a third season – a city swap between Boston and Atlanta – which delves into a whole new set of trials. The diverse spectrum of sectors that the show has already put through the same challenge is what makes it so appealing for its audience, and it has enjoyed enough enthusiastic feedback to warrant at least two more series. “Lots of people have been covering it, which is a microcosm of what my challenge is for energy efficiency,” says Vargas. “All these partners are doing great things but if nobody knows about
it, we’re not changing anything. Part of the SWAP is about educating and engaging. The smartest people you’ll ever work with are the ones who admit they don’t know everything, the ones who will openly state that they want to learn and be better. The Better Building Initiative as a whole encourages that.” The group of over 300 companies already taking part in the Better Buildings Challenge have saved billions of dollars between them, MARIA T VARGAS but in Vargas’s words, “the biggest savings come from this leadership group’s ability to motivate and accelerate change”. On the commercial buildings side alone, this project could save $80 billion every year. The businesses involved view energy efficiency as not only something they should be doing because their competitors are, but as something they should do and can do easily. The main goal of the initiative is to transform the US market and the way energy is thought about country-wide. “That’s our hope and our belief, that people will see the savings and the impact these organizations are making, and be inspired by it. This is something that will snowball from here, and from one company to another too. It’s fascinating to watch this internally, seeing some companies make their first forays into energy efficiency, and others being inspired by their peers to expand their efforts.”
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TECHNOLOGY
COOKING ON REAL-TIME GAS Calor Gas’s Head of IT Simon Went discusses the implementation of Talend, a new cloud-based system which is enabling the company to transform into a real-time data-driven business, able to better profile and serve customers Writ t en by: TOM WADLOW
TECHNOLOGY THE UK’S TOP supplier of LPG, Calor Gas is very much a hands-on company that sources, shifts and delivers. Every day the company provides heating, cooking and energy solutions to homes across the UK and also supplies heating, catering, agriculture and transport sectors with cylinders and bulk tanks. Its parent company, SHV Energy, is an even bigger mover and shifter, turning over more than €5 billion in 27 countries with 13,500 staff. But even such a physical operation can feel the rigour and strain caused by pace of technological change. Enter Simon Went, Head of IT for Calor Gas. “The pace of change is now relentless, and this is being felt across businesses in all sectors not just Calor,” he comments. “There are a number of internal and external factors becoming more complicated, and in the role I play I would say that relationship management is an increasingly vital component.” The need for sophisticated customer relationship management becomes all the more pressing when you consider the length and breadth of UK geography which Calor covers. “We are a very traditional, physical, arguably simple business but also 16
April 2017
a very disparately located one. We have deployed mobile technology in the field for many years, however I see us using yet more of such technology enabling Calor to be a real time business,” Went explains. “The days when we controlled all things related to IT are long gone. IT is not the sole preserve of the IT department anymore, everyone is into it and it is important that our internal stakeholders see us as a part of their conversations. Therefore, to meet the demands of the business we need the ability and agility to scale up quickly, and to do that we have developed a network of trusted partners.”
SMART MARKETING Rules introduced by Competition Commission provide the backdrop to Calor’s customer retention technology drive. In a bid to remove barriers to switching providers in the LPG sector, gas tanks are now sold to the new provider in the event of a switch, removing the need to take away and re-install. Another key detail is that contracts can last no longer than two years, with companies like Calor having to inform customers when this time is reaching an end, notifying
COOKING ON REAL-TIME GAS
them that they are able to switch. “We have around 50 percent market ownership on domestic bulk LPG tanks, so we had a lot to lose, meaning customer retention is absolutely critical to our success,” Went explains. “Over the years we have generally managed the relationship with our 100,000-strong customer base in the same way. We were contacting them in the same way more or less without any differentiation or targeting. Calor has a wide range of customers up
and down the country and we were not really taking account of that.” Calor recognised the need to identify and group segments of customers, and with the help of an external provider did just this two years ago. This involved analysing mountains of data from many sources and the development of algorithms to identify customer segments which feed into a newlypurposeful CRM. “This is where Talend comes in,” Went says.
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“IT is not the preserve of IT folk anymore, everyone is into it and it is important that our internal stakeholders see us as a part of their conversations� - Simon Went, Head of IT for Calor Gas 18
April 2017
COOKING ON REAL-TIME GAS
TALEND With the goal of revamping ETL (Extract, Transform, Load) and data integration processes with Calor’s data warehouse, Gartner recommended the installation of Talend, with Datalytyx selected to implement the solution. “Talend is an enabler for us,” says Went, “especially in terms of customer segmentation and information and data management. It has proven its worth in terms of being able to shift large data volumes between platforms from multiple sources, and in quick time. “However, we are still learning ourselves about customer behaviour and relating this to the personas we have been able to identify. So when we send the wake up offer towards the end of the contract period we are seeing what responses we get, what works well and what doesn’t. We should soon be able to identify some sweet spots within customer segments. If we can understand the customers better and understand what is important to them over
time, we can personalise our offers and become more successful in retaining them, which is ultimately what we’re trying to achieve.” While Went confirms that some early indications have been made as to potential successful approaches to certain customer groups, other factors beyond Calor’s control are likely to impact a customer’s thought process. “The environment is changing, as is the price stability that we’ve had over the past year or two,” he adds. “Coming up with the initial set of algorithms isn’t a one off, we have to keep adapting as conditions change and as customer behaviour changes.” Alongside Talend, Calor is looking ahead to many other technological enhancements, including a new CRM system to help interact with customers in much more modern way, whether it be digital, automated or personal. Renewal of existing technology such as mobile phones for deliver drivers and asset tracking software are other items on the agenda – all with the aim of joining up to make Calor a truly real-time business.
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TOP 10 OFFSHORE WINDFARMS
Having recently looked at the world’s most important onshore wind farms, we turn our attention to some of the biggest sites found in the sea W r i t t e n b y : P O L LY C O L E M A N
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09 SHERINGHAM SHOAL Location: Greater Wash, UK MW Capacity: 317
10 THANET WIND FARM Location: Kent, UK MW Capacity: 300
Thanet Wind Farm is a £780 million wind farm owned and operated by Vattenfall, and is situated in water depths of 20 to 25 metres that covers an area of 35km². The wind farm’s construction commenced in 2008 and by 2010, the project was completed; in September of that year, the it started operations. The wind farm consists of 100 Vestas V90 3MW wind turbines, with each turbine measuring 115 metres high at the highest points.
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Sheringham Shoal is diamondshaped and measures 35km² in area. The 88-turbine wind farm was built by Scira Offshore, a joint venture by Statoil and Statkraft with an investment of approximately $1.8 billion. Statoil was the operator of the wind farm, but Statkraft took over operations in January 2014. Its operational base is at Wells Harbour on the Norfolk coast. There are also two offshore substations and one onshore substation that form part of the project.
T O P 1 0 O F F S H O R E W I N D FA R M S
07 WALNEY WIND FARM Location: Cumbria, UK MW Capacity: 367.2
08 THORNTON BANK Location: North Sea, Belgium MW Capacity: 325.2
Thornton Bank is Belgium’s first offshore wind farm. It is located 30 kilometres off the countries coast. The wind farm was developed in three phases and has an installed capacity of 325.2MW. Thornton Bank 1 has 6 REpower 5MW turbines and Thornton Bank 2 has 24 REpower 6.15MW turbines. Thornton Bank 3 was commissioned in 2013 and also consists of 24 REpower 6.15MW turbines. The wind farm has the capacity to supply electricity for around 600,000 people.
Walney Wind Farm is operated by DONG Energy. The wind farm is located in the East Irish Sea, 15km west of Barrowin-Furness, Cumbria, UK. The Walney Wind Farm is made up of 102 Siemens 3.6MW wind turbines (51 installed in each phase). The wind farm is planned to be extended by 120 new turbines, which will increase its capacity to beyond 1,000MW. The two phases of the offshore wind farm were grid-connected in January and November 2011. Commercial operation of both the phases started in early 2012.
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05 BARD OFFSHORE 1 Location: North Sea, Germany MW Capacity: 400
06 ANHOLT Location: Germany MW Capacity: 400
Anholt is the largest offshore wind farm in Denmark. Officially inaugurated in September 2013, the farm consists of 111 Siemens wind turbines which each have a rotor diameter of 120 metres. DONG Energy owns 50 percent and also operates the wind farm. Two pension fund companies (Pension Danmark and PKA) hold 30 percent and 20 percent stakes in the project. The wind farm supplies for nearly four percent of Denmark’s total power demand. 24
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Bard Offshore 1 is located 100 kilometres north-west of Borkum Island in the North Sea. The wind farm covers an area of 60km² and has 80 turbines. The first 40 turbines of the wind farm were installed in a record seven months, by using a variety of jack-up and support vessels. The turbines contain over 120,000 tonnes of steel and were all installed by July 2013, which marked the sites completion. The wind farm was developed by Bard Engineering and it supplies 80 percent of Germany’s offshore power production.
T O P 1 0 O F F S H O R E W I N D FA R M S
03 GWYNT Y MÔR Location: UK MW Capacity: 576
04 GREATER GABBARD Location: UK MW Capacity: 504
Greater Gabbard is located 25 kilometres off the coast of Suffolk, in the North Sea. It comprises of 140 turbines which are all installed on steel monopoles dug 24 to 34 metres deep in the sea. The wind farm was originally launched as a joint venture by Airtricity and Flour but is jointly owned by Scottish and Southern Energy (SSE) and RWE npower.
Gwynt y Môr is an offshore wind farm located 18 kilometres off the coast of North Wales. It has 160 Siemens SWT-3.6-107 turbines that are all 150 metres above sea level. Construction of the wind farm began in 2012, power production started in September 2013 and final commissioning occurred in June 2015. The project has a value of 2 billion Euros; 1.2 billion Euros were spent on turbines and electrical connections. 50 percent of the wind farm is owned by RWE Power, 30 percent by Stadtwerke München, 10 percent UK Green Investment Bank and 10 percent by Siemens.
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02 LONDON ARRAY Location: Thames Estuary, UK MW Capacity: 630
The London Array is currently the largest offshore windfarm. It has an area of approximately 100km² and this includes approximately 450km of cabling. The site was developed by Masdar, EON and DONG Energy and it cuts 900,000 tonnes of carbon dioxide a year at its current capacity. Phase one includes 175 turbines, an onshore substation and two offshore substations with the first turbine having been installed in January 2012. The last turbine was in place within 12 months and was officially inaugurated in July 2013.
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T O P 1 0 O F F S H O R E W I N D FA R M S
01 HORNSEA PROJECT TWO Location: 55 miles off the coast of Grimsby, UK MW Capacity (when completed): 1,800
The proposed construction of Hornsea Project Two has recently been approved by ministers. The offshore windfarm will cover an area five times the size of Hull and will see 300 turbines span more than 480 square kilometres in the North Sea. The project is being developed by DONG Energy and is expected to deliver 1,800MW of low-CO2 electricity to 1.6m UK homes. It will have a generating capacity of 1.8 gigawatts and will dwarf the London Array which is currently the world’s largest operating offshore wind farm. Ministers have said the windfarm would introduce 1,960 construction jobs and 580 operational and maintenance jobs. The project could be up and running by the mid-2020s, however, the company has yet to make a final investment decision on Hornsea Project Two and a spokesman said it could be two years before it is signed off. 27
A can-do appro
oach to sustainability Written by Tom Wadlow Produced by Jon Cooper 29
Producer of more than 100 billion cans every year for some of the world’s largest drinks companies, Ball Corporation is breaking down the B2B barrier in a bid to engage with consumers and ramp up recycling
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round one in three of the world’s beverage cans are produced by Ball Corporation. An astonishing 100 billion units a year filled with the likes of CocaCola, Coors and Carlsberg help to generate $9 billion in revenues. A simple product, an immense scale. And it is this scale which places Ball at the heart of its clients’ own sustainability objectives. Packaging can account for anywhere up to 50 percent of a large drinks manufacturer’s carbon footprint, making cross-collaborative innovation between clients and Ball’s customerfocused team paramount to the success of the sustainable agenda. For European Sustainability Manager Matthew Rowland-Jones, formulating how Ball can fulfil the sustainability objectives of clients is central to his work. And with
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new advances in the beverage can, it is the metal container which holds the greatest green potential of any drinks packaging. Brewers are also buying into the quality. “One of the things that is appealing about cans for the craft brewers as well as the larger brewers is that it is a 100 percent barrier to light and air, offering total protection to the product,” says RowlandJones, pointing to another industry trend which in itself presents a different challenge to Ball - the rise of craft. “The smaller scale does present some challenges to us in terms of production runs, and that is something we will work hard to accommodate. The growth is around micro-brewers and craft beer, albeit working from a small base.” With the can becoming the container of choice for these brewers,
there is huge opportunity for Ball to lead a sustainable charge in the industry. This is recognised by new Sustainability Director Ramon Arratia: “For me sustainability is a responsibility that we all have, whether that be business, government or society at large. Responsibility also comes with size, and Ball is a huge producer of packaging, even more so after the merger with Rexam, and wants to play a bigger role. Packaging offers a lot of opportunities and I think the superior performance aluminium can in particular has great potential.”
BALL CORPORATION’S 2020 TARGETS
EUROPE
PRODUCT STEWARDSHIP • Cut carbon footprint of beverage cans by 25 percent versus 2010 baseline • Achieve industry recycling rate targets for metal packaging products in developed markets, and work towards measurement and improvement metal packaging recycling in emerging markets • Deliver three major aerospace programs that will provide significant benefits in areas such as climate change, weather, drought, pollution and biodiversity measurements
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Can you see the future? We can. Introducing valPureŽ V70. The first non-BPA technology with epoxy-like performance. valPure V70 is a breakthrough technology for light metal packaging for food and beverage manufacturers looking for safety without compromise. It’s been proven nonendocrine active by independent laboratories and approved by regulatory agencies. It delivers industry-standard epoxy performance from a non-BPA* solution. We developed V70 through our Safety by Design process, which uses the latest scientific methods to test for endocrine activity, toxicology and migration to preserve food safety, can integrity and market longevity. valPure V70 is a sustainable technology, water-based, low VOC, and maintains existing plant efficiencies. valPure technologies are approved for use around the world for virtually every light metal packaging application.
Add that to our impressive 49 non-BPA patents and more than 100 international regulatory approvals, and no wonder more than 20 billion cans are lined with valPure technologies. Only valPure offers you the widest choice of non-BPA* coating solutions to address your needs now and prepare you for changing regulatory requirements and consumer preferences in the future, no matter your coating need. Have confidence in the future with valPure and V70. www.valpure.com
*Non-BPA - This designation indicates that the coating technology is based on polymeric components that are not directly derived from Bisphenol A. Š2017 The Valspar Corporation
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Fresh impetus Arratia brings with him a renewed energy, born out of the massive sustainability strides taken under his tenure at global carpet manufacturer Interface. “We want to push the company and the industry to be much more ambitious,” he says. “What I have seen in a short time so far is that the can is a gold mine for a sustainability professional. It is mono-material, and already has a pretty good recycling infrastructure surrounding it.” At Interface the ceiling was removed in its entirety when it came to setting objectives, most notably to become carbon neutral by 2020. Whilst almost impossible to achieve, the desire to get there flowed through the veins of the organisation, and it is this can-do ethos which Arratia is looking to strengthen at Ball. “With a bit of smart policy from government and heightened consumer awareness, along with some innovation on product design from our side, we could cut carbon emissions dramatically. I am very
“The biggest thing we can do is make sure that the packaging is designed in a way that means it can be recycled infinite times” – Matthew Rowland-Jones, European Sustainability Manager
positive that this industry can deliver huge sustainable progress and this will be driven by the growth of the can as a form of packaging.” It is not just carbon that Arratia is focussing on – for him it is about instilling a wider sustainable can-do culture covering all aspects of the business. He adds: “There are other areas such as use of chemicals and health and safety, and the industry can play a bigger role in the wider health agenda. It is about creating a culture which will deliver on these issues and increase the level of ambition.”
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Consumer conscience This is not to suggest that bold ambition was in any way lacking before Arratia arrived. Such boldness can already be seen in Ball’s 2016 sustainability report, which sets out 10 objectives across four key pillars – product stewardship, operational excellence, talent management and community ambassadors. Indeed, sustainable standards are a significant part of Ball’s Drive for 10 corporate vision, which aims at leveraging company strengths
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BALL CORPORATION’S 2020 TARGETS
B A L L C O R P O R AT I O N
TALENT MANAGEMENT • Enhance overall employee engagement and talent retention by assessing and continuously improving the processes that support the way talent is acquired, onboarded, developed and moved at Ball • Roll out diversity and inclusion tools globally, expand Ball Resource Groups companywide, and meet the criteria required to secure a place on the Diversity, Inc. Top 50 Companies for Diversity
Focused on Sustainable Metal Packaging Solutions Henkel is founded on a deep commitment to deliver services and chemical products that consistently exceed customer expectations, while encompassing product safety and ecological compatibility. These guiding principles of Henkel inspire long-term customer relationships based on reliability, credibility and mutual trust. Henkel continuously develops innovative products and technologies that offer customer benefits in environmental and health protection, as well as economic and efficiency advantages. Henkel’s metal packaging product development strategy is focused on green solutions to keep pace with the changing requirements of can manufacturers, including the drive toward more environmentally sustainable products. This is why Henkel is dedicated to providing the industry environmentally safe lubricants, cleaners, superior mobility enhancers and conversion coating options.
Explore our expertise and innovative solutions at www.henkel-adhesives.com/metals
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to achieve long term success. The most eye-catching of these 10 goals is to develop science-based carbon targets, which RowlandJones says could look as far ahead as 2030. Central to this, he says, is driving up recycling rates and ensuring Ball’s products live multiple lives as cans or other metal items. Ball has the perfect product to deliver this. Already 100 percent recyclable, the can already has the highest recycling rate of any beverage pack which stands at 70 percent globally. It is the other 30 percent which makes up Arratia’s gold mine. With more than 18,000 employees staffing 100 locations around the world, the company is influencing lives in many communities; communities which form an integral part of Ball’s ongoing sustainability efforts, not least when it comes to reducing carbon footprints through recycling. “This is a big challenge for us as a B2B business, a challenge that will require a lot of collaboration with customers and those in touch with end users,” says Rowland-Jones,
“It is about getting our plants to engage with their communities about recycling and was a great success in terms of local PR and getting our plants connected with their local populations” – Matthew Rowland-Jones, European Sustainability Manager
who refers to two European programmes which demonstrate this in action, targeting consumers outside and inside the home. “Our ‘Every Can Counts’ project is running in 12 European countries,” he explains. “We partner with events such as music festivals, shopping centres and sports organisations like the Le Mans 24 hour motorsport race to help engage with consumers
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B A L L C O R P O R AT I O N
BALL CORP. 2020 TARGETS
COMMUNITY AMBASSADORS
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• Global roll out of Community Ambassadors program • Establish 2030 global volunteer goal that is aligned with the UN Sustainable Development Goals
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who are drinking from cans on the go, raising awareness of recycling.” The second example, Metal Matters, targets UK household recycling. Rowland-Jones continues: “This is revolved around educating householders about what they can put in their recycling collections in terms of metal packaging, not necessarily just beverage packaging. It is about the whole spectrum of metal packaging, from aerosols and foils to food and drink cans.” Internally, Rowland-Jones is looking at how Ball Corporation in Europe can on a site-by-site basis inspire communities to recycle, at the same time showcasing the company as a great place to seek a career.
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“It is about getting our plants to engage with their communities about recycling and can be a great success in terms of local PR and getting our plants connected with their local populations. It helps to inspire young people and spread the message that Ball is a great company to work for.” Cradle-to-Cradle Recyclability was a key factor in Ball’s Cradle-to-Cradle accreditation
achieved alongside Carlsberg. Approached back in 2012/13, Ball has become an important part of the Danish brewer’s Circular Community of suppliers, working collectively to be the first beverage package certified to Cradle-to-Cradle standards. The factors contributing towards the certification include the packaging’s recyclability, how manufacturers look at wider corporate responsibility regarding the recycling
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B A L L C O R P O R AT I O N
message, and work carried out in factories to reduce energy use. “We achieved a bronze rating in early 2015,” Rowland-Jones adds. “It was a challenging framework for us to work towards, and has given us some ideas around an improvement plan to further improve the certification. There is more we can do, for example with renewables and encouraging consumers to recycle more.” Arratia emphasises the need for joined up action between the industry and consumers further still, highlighting the responsibility for Ball to create the most recyclable packaging possible. “One key message for us and for packaging is that it is so fast moving,” he says. “You buy the product and consume it quickly and want to dispose of it quickly as well. That means the biggest thing we can do is make sure that the packaging is designed in a way that means it can be recycled infinite times. “It is like-for-like recycling, which is maintaining the same value of the material at the end of its life – it is not
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down-cycling or bringing waste back to life. If you design something that is going to last hundreds of years in its first use then it is not as a big an issue, but for something that is used and disposed of so quickly, it is so important. This is why the industry as a whole needs to look at the wider infrastructure in an innovative way. Programmes aimed at helping consumers and public legislation are certainly going to help, but the industry can be more creative as well.” Best practice Ball is already leading the way when it comes to best practice. A member of the Dow Jones Sustainability Indices, the company has been named industry leader for container and packaging businesses for four consecutive years. The same feat has been achieved with RobecoSAM’s Sustainability Yearbook. In Europe, Rowland-Jones outlines how best practice is maintained: “We have carried out a lot of work around lean and six sigma processes, which involves work around
EUROPE
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processors and heat recovery in our operations. We will trial in one plant and then roll out best practice across all of our sites very quickly.” The social side of sustainable best practice is also of critical importance, not least when looking to the future of the company. Employee welfare is underpinned by an exemplary health and safety record, while welfare of those in
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BALL CORPORATION’S 2020 TARGETS
B A L L C O R P O R AT I O N
OPERATIONAL EXCELLENCE • Reduce three-year rolling average Total Recordable Incident Rate by 25 percent versus 2015 baseline • By year-end 2016, determine baseline for electricity, natural gas, water, waste and VOCs post-close of the Rexam acquisition and commit to bottom-up normalised targets for global beverage can business by mid-2017 • Determine a sciencebased greenhouse gas emission reduction target by mid-2018
EU NR ER OG PY E
surrounding communities is also a priority, underlined by the Community Ambassador programme which Rowland-Jones is eager to import from the USA arm of the business. This all adds to the equation which makes Ball Corporation an attractive proposition for potential employees. For Rowland-Jones, sustainability and continuity go hand-in-hand. He concludes: “In terms of succession
planning, there are numerous studies pointing towards the desire for millennials and younger workers wanting to work for sustainable organisations. Ball must continue to be one of these organisations.�
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MAINTAINING
POWER Written by Wedaeli Chibelushi Produced by Vince Kielty
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TNB REMACO
WE INTERVIEWED TNB REMACO’S MANAGING DIRECTOR ANUAR YUSOFF ABOUT THE COMPANY’S DIVERSIFICATION PLANS
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NB Repair and Maintenance Sdn. Bhd. (TNB REMACO) is constantly diversifying itself in riding the changing landscape of the industry. Leveraging on technological development and clientele everchanging expectations, TNB REMACO is set to become a premier brand with holistic solutions in delivering customer’s trust in its services. TNB REMACO is wholly-owned by Tenaga Nasional Berhad (TNB), of which is the largest electricity utility in Malaysia and one of the largest in the region with an asset base totaling USD30 billion and customer base of more than three million users. TNB REMACO was first incorporated as a subsidiary of TNB in 1995. The company is managed independently as a business organization within the corporate structure of the TNB group. While it shares the group’s core vision, values and culture TNB REMACO nonetheless remains steadfast in the
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realization of its own corporate destiny. Managing Director Anuar Yusoff explains the transformation in structure: “TNB REMACO used to be a small department supporting TNB generation. We did repair, maintenance and overhaul for their generating plants - their gas, steam and hydro turbines. It was in 1995 when we became a wholly owned subsidiary of TNB that we diligently gearing our resources and expertise in realization of the vision and mission of the company.” How does TNB REMACO balance diversification with loyalty to its parent power plants? “Previously, we are exclusively servicing TNB’s existing fleet of power plants but has expanded our services for newly developed power plants and has also actively providing services to independent power producers (IPP’s) such as Malakoff and Powertek, as well as oil and gas (O&G) sector,”
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ANUAR YUSOFF
MANAGING DIRECTOR TNB REPAIR AND MAINTENANCE SDN. BHD. (TNB REMACO)
1 In every now in one #
Let the transform
Dell, EMC and other trademarks are trademarks of Dell Inc. or its subsidiaries.Â
ything e place.
mation begin.
POWER SYSTEM TECHNOLOGY PESTECH’s drive to empower industries with power system technology that fuels social and economic growth in an absolutely safe, reliable and secure manner. • Power transmission infrastructure and products • Power generation and rail electrification • Built and operate of transmission asset • Embedded system software and product development
www.pestech-international.com
ASIA
Anuar Yusoff explains. Among the O&G clients serviced by TNB REMACO are Petronas Gas Berhad (PGB), Petronas MLNG and GE Power. Not only is TNB REMACO diversifying from the traditional energy market, it’s also exploring different geographical spaces. “In the middle of 2004, we started going into international markets,” Anuar Yusoff explains. The company has business presence within the SouthEast Asia and MENA (Middle East and North Africa) region, such as in Myanmar, Singapore, Brunei, Indonesia, Yemen, Kingdom of Arab Saudi and Vietnam. Anuar Yusoff explains that TNB REMACO’s goal is to achieve 10 to 20 percent growth from overseas businesses: “I have to look at every opportunity to grow business locally as well as internationally. For the last three years,
we started going aggressively into the Middle East,” he says. Currently, TNB REMACO has three operations and maintenance (O&M) contracts in Kuwait, two in Pakistan and one in Kingdom of Saudi Arabia. Although TNB REMACO has built a global presence, its roots are firmly planted in Malaysia: “As of December 2016, we have executed a contract for a Long-Term Service Agreement (LTSA) with Petronas Gas Berhad (PGB), the national petroleum company of Malaysia,” Anuar Yusoff says. PGB awarded a MYR160 million contract to TNB REMACO for the maintenance of its gas turbine and related equipment for Central Utility Facility (CUF) in Gebeng and Kerteh, for a duration of 6 years. “Customer requirements keep on changing,” Anuar Yusoff says. “They keep on pushing their expectations.
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ASIA
For an example, TNB used to carry out a planned maintenance outage for roughly 50 days in the late 80s, but now client requested for a shorter outage period, and we have to work 24/7 to fulfill their requirements. To support that, we need to have highly skilled and dedicated personnel, and the latest equipment.” When the petroleum price rise in the early 2000s, TNB REMACO losing some of these employees to the O&G sector. However, the firm worked hard to develop teams of adept and robust personnel, and during the last five years has managed to maintain a low turnover. Anuar Yusoff adds, “We have a good remuneration package that is within the best in Malaysia. In terms of competencies, we have a systematic training system which is conducted by TNB owned technical training centre, namely ILSAS. We have a training module where for the first three years of entering into TNB REMACO, all personnel will enrol into dedicated training modules that covers both
technical and management courses.” And in embracing the rapid development of the technological changes, TNB REMACO is keeping abreast with the changes by continuously developing highly skilled personnel. “In terms of technology adaption, we regularly maintaining the integrity of that equipment by sending our personnel for various training and certification program, as we definitely cannot afford to have failed equipment or incompetent personnel,” Anuar Yusoff explains. TNB REMACO also has established a comprehensive condition monitoring program for its client in ensuring reliability and efficiency of their equipment. TNB REMACO also prides itself by having a Repair Centre, which is located in Connaught Bridge, Klang. The Repair Centre can be considered a gem for the industry in view of its capabilities for performing various repair and refurbishment activities. TNB REMACO is collaborating with Original Equipment Manufacturers
1,000
Number of employees at TNB Remaco
TNB REMACO (OEM’s) for refurbishment of turbine parts and its components, apart from capability to perform bearing re-metalling, and reverse engineering services, just to mention a few of Repair Centre’s capabilities. TNB REMACO also prides itself on having a varied field of services offering to the potential customers. Anuar Yusoff says: “We call ourselves a one-stop service provider - any client in energy related industry can utilize our expertise and services. We can assist them to design and build a power plant, perform the O&M of the power plant, conduct scheduled maintenance for the equipment, perform the test and diagnostic activities and also refurbish the turbine parts. At the end of the power plant life or its Power Purchase Agreement (PPA), TNB REMACO can also perform the decommissioning of the power plant and sell the parts. In a nutshell, TNB REMACO is capable to perform various activities during the whole life cycle of the plant”. We ask Anuar Yusoff whether TNB REMACO has reached its full capacity. “Our target revenue in 2020 will be MYR1.9 billion and we will be
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going more aggressively to overseas market, especially Pakistan,” he stated. TNB REMACO also wanted to increase its presence in the oil and gas industry. Currently, its revenue comprises approximately 90 percent from power sector and only 10 percent from oil and gas sector. “In the current market condition for O&G sector whereby the petroleum price is dipping below USD60 per barrel, there is a promising chance for us in offering our services to the industry players. This is due to the fact that most of the O&G
ASIA
“WE CALL OURSELVES A ONE-STOP SERVICE PROVIDER - ANY CLIENTS CAN UTILIZE OUR EXPERTISE AND SERVICES” companies are currently opening its door for alternative service providers rather that exclusively engaging the OEMs, of which is of premium pricing,” Anuar Yusoff says. TNB REMACO also aspired to establish its name in EPC (Engineering, Procurement and Construction) business. “We aspire to be one of the reputable EPC contractor, because before this we were more involved in the Project Management and Consultancy (PMC), but not in the construction side. We are currently preparing ourselves
to enter into the EPC business.” Anuar Yusof’s vision for TNB REMACO is clear, and the expansion of business plan for TNB REMACO was built on a solid track record and coupled by its impressive expansion strategy. TNB REMACO is no longer in a single market platform, and has huge potential to grow rapidly whether it be internationally or into other sectors. We can’t wait to see what TNB REMACO does next.
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RACING FORWARD with the
digital
revolution Written by Jackie Cosh Produced by Andy Turner
Š2013 | Richard Coburn
A N A LY T I C S Y S T E M S
A reduction in military spending has encouraged Analytic Systems to expand its product range
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niversity can help shape our futures in many ways other than academically. For Jim Hargrove his involvement as a member, and ultimately as president of the sports car club at the University of British Columbia, sparked a lifelong passion for the motor sports industry which has helped fuel his career for more than thirty years. Today Hargrove is president of Vancouver based Analytic Systems, the company founded by his father Lloyd Hargrove in 1976, and his first employer after graduating with a BASc in electrical engineering in 1981. After a 10 year stint designing and building marine automatic pilots beginning in 1983, Hargrove returned to take over control of the company from his father in 1994. Refocusing the company as a manufacturer of power conversion products, it serves five key markets – military, industrial, transportation,
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marine and telecommunication. The company is very much an international one with military and industrial clients around the world. “We are approved by the Controlled Goods Program in Canada which is the equivalent of the International Treaty for Arms Reduction (ITAR) and is a critical component of being able to do business with any military organization or military contractor in the western world” says Hargrove. But reduced military spending, particularly in the USA, has had an effect on business, as Hargrove explains. “The last few years have been very difficult. Virtually every military budget around the world got slashed. So in response to that we took the decision to really refocus the company on our commercial industrial product line and leveraged the transition into digital power electronics. We are now seeing an upsurge in sales because of
ENERGY
100 percent
manufactured in North America - that is one of our hallmarks – James Hargrove, CEO
the investment that we have made in technology over the last few years.” Evidence of this can be seen in the number of orders taken. In the week of October 31st, 2015 Analytic Systems had orders on the books equal to about two weeks’ worth of work. By October 31st, 2016 this figure had rebounded to over three months’ of work. “Part of that is because of renewed military spending, but more importantly it is because people really like the new products we have developed” says Hargrove.
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James Hargrove, P.Eng CEO
Hargrove founded ComNav Marine in 1983 and grew it into the largest North American manufacturer of Marine Autopilots. In 1993 he took over the controlling interest of Analytic Systems Ware and has grown the company into sales of over $10 million dollars per year.
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ENERGY
This is not the first time Analytic Systems has hit troubled waters and came out of it stronger. Back in the early 80s interest rates went through the roof and it nearly destroyed the company. “No sooner had I started working for the company than my dad said – I can’t pay you anything” reminisces Hargrove. But he was proactive. One of the products he had been working on at Analytic Systems wasa the world’s first digital automatic pilot for steering boats. Along with an investor he set up a spin off company ComNav Marine to sell the product and left Analytic Systems to become vice president of engineering at ComNav at the age of 26. Ten years later he sold his share of ComNav Marine and returned to become a majority owner of Analytic Systems, and worked alongside his father for the next ten years until the senior Hargrove slowly began to retire. Jim also brought his own ideas and experience to the company. “When I rejoined Analytic Systems in 1994 my father was still doing custom engineering. It is a very hand to mouth type business. So when I took the company over I
Janet Herbert Herbert is a CGA and comes to Analytic Systems with over 21 years of experience in the steel distribution industry in various finance roles.
said - let’s leverage the intellectual property in power conversion products you have developed over the past 16 years and design and build a line of products. So we turned Analytic Systems from a custom engineering
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A N A LY T I C S Y S T E M S
company into a power electronics products company. It has grown from two partners in a 1200 square foot warehouse in 1994 to over 50 employees and 45,000 square feet of electronics design and manufacturing and CNC machining space today.” Hargrove’s interest in the motorsports industry resulted in the company designing products for motorsports starting in 2000. “Our first product was a Total Discharge Controller that allowed a race car to be run off a battery only without the need for an alternator” explained Hargrove.
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To complement the Total Discharge Controller the company developed high performance battery chargers to swiftly and accurately recharge the race car battery while it was in the pits. These products were marketed under the ‘RaceEnergy’ brand. More products followed but Hargrove is proudest of being selected by Indycar to provide battery chargers to all the of the official Indycar support series in 2013. “We used this opportunity to develop our very first all-digital battery charger that allowed any kind of race car battery to be properly and
ENERGY
fully recharged in the least amount of time”. Each of these motorsports products also created industrial and military spinoff products that have created millions of dollars of additional revenue for the company and sparked the wholesale conversion of its product line to digital control. Two years ago the company decided to spin off the motorsports business and created a sister company called RaceEnergy Performance which specifically caters to the needs of the motor sports industry. In addition to continuing to develop and support the power conversion electronics, RaceEnergy is now designing an electric race car. Hargrove reports: “It is a small part. There are only three people in the division, but they are so busy right now that we can’t keep up. We have been contracted by a company that is developing an electric vehicle here in Vancouver to create and build a racing version of that car, so we have been designing our own battery systems, our own motor controllers, our own charging systems, not to mention all the mechanical parts such as suspension systems
Gheorghe Branzea Branzea has been with Analytic Systems for more than 20 years and has applied his technical and organizational skills to a highly lean manufacturing environment.
and all-wheel drive. It is more aligned with the formula racing world than with mainstream electric vehicle world because all your charging systems in the race cars are off the car. You charge the batteries outside of the car
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ENERGY
and you just plug them in and go.” Having recently changed registrars and re-certified to ISO9001 the company is looking ahead to where the market is going. “We are very proud of the conversion to digital technology and we see digital technology growing because of the fact you can put so much of the functionality into the computer chips and it increases the range of applications you can manage with a smaller number of products” says Hargrove. Today they pride themselves in being able to offer both standard and custom power conversion products. “What we find is that a lot of customers say – ‘I like what you have done here but…’ and where we think we differentiate ourselves from other companies is that when the customer says ‘but’ we say “yes, we can make that happen’” says Hargrove. “So we will very often take a standard product modify it and add extra functionality, whether that is digital displays, communications, special connectors or specific footprint the customer wants to have or environmental protection, all the
Bill Walker Walker brings 30 years of international sales and marketing experience in military, industrial and high technology markets.
way up to IP67 which means that the unit can operate up to a meter under water. Alternatively if none of the company’s standard products are suitable to modify for the customer’s application, a completely new product
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Analytic Systems - Co
Bruce Jones Jones is responsible for increasing our share of the Commercial & Industrial markets in North America. He brings over 18 years of technical sales and worldwide channel management experience to his role building partnerships with our sales channels and OEM customers. He holds a BA degree in Business Administration.
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can be designed from the ground up. The company is very much a one stop shop; they do everything but manufacture the actual printed circuit boards, assembly, design, manufacturing and testing all conducted in-house including aerospace quality CNC machining of components in their Metal Action Machining sister company. This, says Hargrove, is what they are most proud of, the fact that all work takes place at one of the finest design and manufacturing facilities in North America. “100 percent manufactured in North America - that is one of our hallmarks.
orporate Headquarters
“We plan to continue the digital revolution, in terms of more products that are digitally controlled, to continue to increase the power density - more power, less space.” Currently the company is moving the battery charging technology up into the 5 kilowatt power level, and are looking to the future. “We are never ones to be at the forefront of dollars per watt race. We are never going to be the cheapest, but we like to think that as we continue to work to produce higher and higher quality products, we are one of the best,” summarizes Hargrove.
Rob Hargrove Hargrove has returned to the family business in his new role as Canadian Sales Manager after a 4 year absence. He previously worked in production and engineering roles at Analytic Systems, through high school as well as during and after university. Outside of work, he continues to compete at a national level in Cross Country Mountain Bike and has previously raced at an elite level of road cycling. He looks forward to working with you and building on the success of Analytic Systems.