Energy Digital - December 2015

www.energydigital.com | December 2015

YEAR IN REVIEW TOP ENERGY STORIES OF

2015 The top 10 of 2015’s top 10s

Best Company Reports of 2015

IN THIS ISSUE

DIRECTOR’S COMMENT

”Celebrate what you want to see more of.” - Tom Peters A S 2 0 1 5 C O M E S T O an end, it’s time to

reflect back at the year and highlight the good, the bad and the ugly for the energy sector.

In our final issue of 2015, we’ll take a look back at the top energy stories of the past year and reveal successful strategies from some of the region’s top companies, including interviews with top executives in the energy sector.

Telsa innovator, Elon Musk, once said: “When something is important enough, you do it even if the odds are not in your favor.” With that being said, the demand for renewable energy grew exponentially in 2015 as more companies began to implement the likes of solar technology into their businesses. It’s a good start but 2016 is expected to see the demand grow infinitely stronger.

Following our end-of-the-year theme, we also highlight our favorite Top 10s from the past 12 months and showcase the top stories we featured from this fascinating year.

As we enter the new year, make it a priority to sit back, relax and enjoy the December issue of Energy Digital.

Energy Digital Team

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CONTENTS

Features

BEST OF 2015

Top 10’s of 2015

6

28

Best company reports of 2015

INFRASTRUCTURE

16 4

Year in Review Top Energy Stories of 2015

November 2015

Karam Fedics Services

54 38

GCC Interconnection Authority

62

ADC Energy Systems

Company Profiles MIDDLE EAST 38 GCC Interconnection Authority 54 Karam Fedics Services 62 ADC Energy Systems

AFRICA

74 94 Applus RTD

Weir Oil & Gas Services

84

74 Weir Oil & Gas Services

Atuabo Free Port

84 Atuabo Free Port

AUSTRALIA 94 Applus RTD

BRAZIL 106 Santa Terezinha Participações

LATIN AMERICA 116 ESSA 5

Best company reports of

2015

Effective trends from the top energy companies this year.

W R I T T E N B Y: R O B E R T S P E N C E

BEST OF 2015

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BEST OF 2015 AS WE GET set to ring in the New Year, let’s take a look back at the strategies implemented by some of the world’s most successful energy companies in 2015.

organization is striving to improve every day with a range of changes that will move the city of Pittsburgh into a greener future while improving the operational efficiency at PWSA itself.

The Success Story of the Pittsburgh Water & Sewer Authority With new management, PWSA has evolved into one of the most efficient water utilities in the country.

The Pittsburgh Water & Sewer Authority (PWSA), founded in 1984, was born to manage a $200 million capital improvement program intended to overhaul the city’s aging water treatment and distribution infrastructure.

Not only was some the equipment getting run down, but more strict water quality requirements mandated by both the state and federal governments necessitated an intelligent restructuring of a system that, at the time, supplied water to tens of thousands.

Today, that system, upgraded several times over, supplies fresh water to more than 86,000 people throughout the city of Pittsburgh.

But PWSA’s story isn’t over yet—the

The Operational Efficiencies There was a time when PWSA lagged behind in the race to enter the 21st century. Problems like long call wait times and poorly optimized finances plagued the department which had for so long served as a beacon to the rest of the nation.

That changed in 2012 when the PWSA Board of Directors authorized an agreement with Veolia Water North America— since renamed Veolia Environment— that would allow the private entity to take a degree of control at PWSA while trimming fat from the budget and improving the department.

Along with the agreement, Veolia instated interim Executive Director Jim Good, a Veolia employee, to right the ship.

“I gave the hallelujah amen sermon,” Good told the Pittsburgh Post-Gazette in 2013. “I told them that we were there to work with the employees as their partners.

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HEADLINE

With new management, PWSA has evolved into one of the most efficient water utilities in the USA I provided assurances that there wouldn’t be any layoffs and that together we could achieve anything.�

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Ergon Energy: Regional Queensland Energy Supplier Executive General Manager Peter Billing discusses innovation and reveals upcoming initiatives on the horizon for Queensland.

Ergon Energy is more than just your

average energy company. Founded in 1999, the government-owned corporation is a forward-thinking electricity provider. It services more than 720,000 customers across Queensland by supplying electricity and alternative solutions to residents and businesses from the coastal population to the rural and remote communities throughout the region.

The Queensland company is comprised of two sides: one that builds and maintains the electricity distribution network, and one 9

BEST OF 2015

Ergon Energy, provides energy services to residents and businesses while maintaining an electrical network that stretches roughly 160,000 kilometers

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December 2015

HEADLINE

that sells electricity to residential and business customers.

Ergon Retail is the face of the company, assisting customers in everything from opening new accounts, arranging location moves and managing electricity use to locating convenient ways to pay accounts, support systems and government rebates.

• [INFOGRAPHIC] 5 Major brands using renewable energy The distribution side of the business, Ergon Energy, provides energy services to residents and businesses while maintaining an electrical network that stretches roughly 160,000 kilometers of power lines across Queensland. Within the network operates 33 stand-alone power stations that provide energy to isolated communities within the region.

Additional services include accommodating connections for new technologies such as solar, as well as a small manufacturing group to handle the construction of module substations.

Unlike your typical energy provider, Ergon Energy is driven by innovation.

“Innovation is huge for us. It’s an important part of our business and we’re always looking at new ways to apply new innovation throughout the company,” said Peter Billing, executive general manager of customer service at Ergon Energy.

According to Billing, the company continuously seeks out new ways of improving service – whether through infrastructure or alternative energy sources – to better position themselves for the future.

“We recognized back in 2007 that the price for energy would become an issue and that we would need to adapt,” Billing revealed. “It got us thinking differently and we realized if we keep doing things the way we’ve always done them, the world will change and we’ll become obsolete.

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Schneider Electric: Turning Today’s Risk into Tomorrow’s Opportunity The industrial landscape today is plagued with complex energy management challenges. Businesses are under increasing pressure to 11

BEST OF 2015

Schneider Electric meet tight production demands while delivering quality goods and services, at a lower cost, with minimum impact on the environment. Schneider Electric is a global specialist in energy management and offers its clients solutions and services from a device level all the way to an enterprise level.

The company’s suite of solutions and team of experts can provide clients with real insight into energy consumption. Armed with this knowledge, their clients can identify possible savings - and with Schneider’s help - can balance their energy costs and production 12

December 2015

goals. Not only can Schneider help reduce costs by optimising its clients’ energy needs, but it can also improve the overall efficiency of individual enterprises.

Schneider Electric is a global organization, employing in excess of 170,000 individuals with an annual turnover of approximately €25 billion. The company is divided into five individual divisions, which are Industry, Buildings, IT, Technology and Governance.

Schneider Electric’s Global Solutions department spans all five divisions to provide energy and sustainability

HEADLINE

services to its global client base.

“Our mantra as an organisation is to help customers to identify processes and target strategies for addressing sustainability and energy challenges. We then help them deploy bespoke technology solutions in order to address those challenges. In effect, we span the entire Schneider Group and help to deploy the resources across Schneider in the right way for the right type of company. That can be the PV division as part of a renewable energy strategy for a customer or any associated technology applications within that,” explains Andy Dewis, vice president of international solutions EMEIA. READ MORE

A Fair Wind Over Lake Turnkana Lake Turkana Wind Power (LTWP), after nine long years of negotiation and prepartiion, is now an active project that will be delivering 300 megawatts of power to the Kenyan grid by the end of 2016.

A barren moonscape pitted with volcanic craters, arid and inhospitable, and populated by warring tribes people. That is one view of northern

Kenya, and in a sense it is true: but a dualistic world view that only sees ‘challenges’ misses the point entirely.

The counties of Turkana and Marsabit have extraordinary qualities. Among these is their wildlife, for example it was the prospect of catching sixfoot Nile perch weighing nearly 390 stone that attracted entrepreneur Willem Dolleman to the shores of Lake Turkana in the late 1980s. His main problem was the relentless wind that would take control of his boat – no tent that he could obtain could withstand the force of those winds, and he often had to give in and sleep in his car.

The potential of harnessing those forces for electricity generation was not lost on Dolleman and his friend Carlo van Wageningen, but at that time wind power was still an embryonic technology, and the low cost of oil put it out of contention. Wind power development required subsidies, and none would be forthcoming in Africa. It was not until 2005, when oil prices rose above £50 per barrel for the first time, that they, together with Chris Staubo decided it was time to take another look. The ‘founding fathers’ of LTWP called up Harry Wassenaar and Kasper Paardekooper 13

BEST OF 2015

Wind turbine at Lake Turkana of KP & P, a company with a history of developing and operating wind power projects, to bring some specialist expertise to the project.

They were highly sceptical.

Wassenaar, an old school friend of Dolleman, was however persuaded to come for a holiday. “He fell in love with the place as soon as he saw it,” says van Wageningen. “The wind itself 14

December 2015

convinced him!” With the help of Henk Hutting another veteran of wind power, if that is the right word in such a new industry, who confirmed the reliability of the wind flow in the area, LTWP was set up in Kenya under the ownership of KP & P BV, and the real work began.

Early this year LTWP chairman Mugo Kibati accepted the Project Finance International (PFI) African

HEADLINE

Renewable Deal Award 2014 in recognition of the way the project finance was put together up to final financial close in December 2014 – it was considered the best project finance structure achieved in the region over the last couple of decades. “The MoU between Willem Dolleman, Carlo van Wageningen and Chris Staubo was signed in 2005 so

it took nine years for us to complete the development phase,” says van Wageningen. That was three years longer than the founding fathers had hoped for, but explicable considering the complexity of the project and the painstaking way in which project and political risks perceived by lenders had to be mitigated.

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Year in Review Top Energy Stories of 2015 The top energy stories, trends and themes from the past year

W R I T T E N B Y: R O B E R T S P E N C E

BEST OF 2015

17

BEST OF 2015 AS WE COUNT down the days until 2016, let’s take a look back at some of the biggest stories and trends from the energy sector in 2015.

Could 3D Printing Utterly Change Solar Panel Technology?

The sun is a gargantuan, constant, free source of clean energy and in the era of climate disruption caused by greenhouse gas emissions, the sun’s energy promise is glowingly exciting.

The sheer amount of energy available from the sun presents the unique challenge of how and where to store it all. Current solar panel technology has serious shortcomings, which has had a “chilling effect” on the industry; something we can’t afford.

According to The Guardian, John J. Licata, chief energy strategist at Blue Phoenix, the developing technology of 3D printing may change this.

• [INFOGRAPHIC] Is 3D Printing a Disruptive Technology?

3D printing, sometimes known as additive manufacturing (AM) is the process by which an automated printer follows a digital design to 18

December 2015

create a tangible, three-dimensional (3D) object by repeatedly laying deposits of materials like glass, silicon, plastic, resin or ceramic on top of each other until completion.

The fact that AM works off of a digital design instead of an assembly line—like traditional manufacturing— represents tremendous savings in shipping because the product, in this case 3D solar panels, can be created anywhere there is a 3D printer.

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US Navy makes its largest renewables investment to date with Mesquite solar farm If there was ever any question that the United States is seriously ramping up its interests in the renewable energy market, that questioning can be put to rest. This week the U.S. Department of the Navy forged a partnership with Western Area Power Administration and Sempra U.S. Gas & Power to start work on a new expansion to Sempra’s Mesquite solar farm. While the amount invested in the project has not been disclosed, it has been confirmed as the largest purchase of renewable energy ever made

by a U.S. federal entity to date.

• [INFOGRAPHIC] Solar energy facts Established with its first build-out in 2012, Sempra’s Mesquite solar farm lies roughly 60 miles west of Phoenix, Arizona. Huffington Post reports that the facility, which “requires no water to operate and reduces greenhouse gas emissions,” has the capacity to generate as much as 700 megawatts—enough energy to power up to 260,000 homes.

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BEST OF 2015 SunEdisons $2.2 billion purchase of Vivint Solar signals industry change Clean energy company SunEdison Inc. is stirring the solar industry with its recent purchase of Vivint Solar Inc. for US$2.2 billion.

• Google boosts solar energy with new Project Sunroof endeavor As reported by our sister publication Business Review USA, the deal is the latest move by SunEdison to aggressively expand across the clean energy industry. Vivint Solar is one of the largest U.S. companies that installs solar panels on household rooftops, and news of the deal sent Vivint Solar’s stock up over 40 percent on Monday, July 20, according to Fortune. SunEdison shares were up 2.9 percent at US$32.48, after touching a near-seven-year high of US$33.44, on the New York Stock Exchange, according to Reuters.

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December 2015

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Canadian Solar helps create largest single rooftop solar system in Australia Australia’s largest single rooftop solar system has just been installed on the shopping-centre Stockland Shellharbour, which has already generated over 400,000 kilowatt hours (kWh) of energy and is on pace to hit its annual target of 1.74 kWh. As our sister site Business Review Australia reported, Stockland Shellharbour in New South Wales is made up of 3,991 Photo-Voltaic (PV) panels across a rooftop that’s 7,658 square metres — nearly the same size of a football field. The system generates 4,789 kWh on average daily, which is enough to power 280 homes and provide 28 per cent of the centre’s daily base building requirements.

6 smartphone apps to maximize energy efficiency READ MORE

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BEST OF 2015 6 smartphone apps to maximize energy efficiency In today’s age of smartphones and tablets, monitoring your energy usage and carbon footprint is easier than ever. From tracking energy consumption and efficiency to discovering new ways of saving on your electricity bill, new apps aimed at energy efficiency continue to make living a greener lifestyle easier.

• [INFOGRAPHIC] The Internet of Things and What It Means for Energy We examine six innovative apps that have the power to help you stop wasting energy and start tracking your personal impact on the environment, including possibly making some money in the process.

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December 2015

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Five Tips for Greener Computing in the Push for Sustainability When thinking of ways to improve efficiency and the environmental footprint of your business, chances are that the first topics to spring to mind involve divisions like production or distribution. But energy consumption is a comprehensive concern and there is room for improvement in every division.

• [INFOGRAPHIC] EPA’s Top 25 Cities with Energy Star Buildings Green Computing is the idea that a company’s IT department can be just as efficient, sustainable and environmentally conscious as any other part of operations. It’s an idea that can save your business money and improve its standing with the community. Building a truly green business takes time, but no matter what industry you’re in and where you’re starting out, all it takes is a little planning and strategy to get the ball rolling today.

READ MORE

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BEST OF 2015 How-To: Manage nuclear waste The benefits and risks of nuclear power generation and usage are an ongoing topic of discussion – and often disagreement – with radioactive waste continuing to occupy one of the top spots on the “risk” list.

• Everything you need to know about the nuclear debate And while it goes without saying that this form of power has always brought with it a certain amount of concern – previous power plant accidents and the threat of nuclear war are enough to scare any human being – the issue of radioactive waste may stand-out even more to industry leaders than the memory of Hiroshima. So just how risky is this top-of-mind risk?

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December 2015

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3 Ways to Increase Recycling Rates Sending zero waste to landfills is a goal that’s becoming increasingly more common. While waste-toenergy programs are now more popular than ever, combating waste begins with reducing the amount of waste produced. While this may have a certain “no duh” quality to it, it’s a bit more difficult than one might think. Getting people to recycle and reuse can be a challenge, especially for an already busy waste management company. So, what are some ways to increase

recycling and maintain efficiency?

It may sound incredibly simple, but by giving people bigger bins can work wonders. “With England’s highest recycling rates Rochford’s head of environmental services, Richard Evans, ascribes its scheme’s success to simplicity,” The Guardian’s Laura Laker writes. “The biggest bin outside homes is for recycling—240l compared with the 180l ‘residual bin’—which has helped shift mindsets. The 140l garden and kitchen compost bin is collected weekly and the others fortnightly, encouraging anything which could get smelly to be composted.”

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BEST OF 2015 Top 10: Global innovations As the Earth’s resources deplete, innovators across the world are working to find ways to compensate for a changing environment: Some of their inventions can help families in need while others may reshape the global energy infrastructure yet all are important. Below is a rundown of the 10 promising global breakthroughs that stand-out among the rest. • [INFOGRAPHIC] Top 10 Countries Using Solar 10. PowerMod Austin-based company FTL Solar devised a solution to transport large amounts of fuel safely and efficiently to help victims of natural disasters. The PowerMod solar tent avoids hazards of spills, combustion, and contamination from fuel transport accidents.

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December 2015

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TOP 10

The Top 10 of 2015’s Top

Love top 10s? You’re in luck as we break down the best of the best for top 10s i Written by: Robert Spence

p 10s

in 2015.

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TOP 10

10 TOP 10 COMPANIES SHAPING THE FUTURE OF SMART GRID TECHNOLOGY

New technological innovations in the world of data, electronics and information sharing have revolutionized the electrical grid. Smart grids enable a more energy efficient electrical grid, saving money for both utility companies and consumers, which is why so many reputable companies are focused on creating innovations within this field.

The following 10 companies have each made significant progress in various fields related to smart grid technologies.

Each company on this list was selected because they have made notable advancements in the world of smart grids.

The top three companies include Cisco, IBM and ABB. Unlike some other companies who are focused on smart grids, ABB looks beyond smart grids and wants to create smart cities. By taking smart grid technology a few steps further, ABB aims to make monitoring energy usage easy for both business and residential users, taking the smart grid beyond the grid itself and into the homes of those who are using it with customized ways for users to tweak their usage. Read more 30

December 2015

THE TOP 10 OF 2015’S TOP 10S

TOP 10 U.S. COMMERCIAL SOLAR CONTRACTORS

In May, Solar Power World released its ranking of the top 400 solar contractors currently operating in the U.S. In January edition of Energy Digital, we took a look at the top 10 commercial contractors for solar power and what they do that sets them apart.

The list included the likes of Nexamp in Massachusetts, Radiance Solar in Georgia and Cenergy Power in California. The number contractor for solar power in the United States belongs to Gehrlicher Solar America Corp. in New Jersey. The company works mainly on the east coast, though it has expanded into the west and South America. The company has completed work for a number of clients, including a large rooftop installation for Ikea. Read more

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TOP 10 LARGEST NUCLEAR POWER PLANTS

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Nuclear power is making a comeback. Once synonymous with disaster (think Chernobyl in 1986), this infinite source of energy has since managed to alter its reputation in the eyes of many experts, proving its worth as a viable provider of energy across the globe.

And although the debate continues between activists, specialists, politicians and consumers, so too does the demand for and use of nuclear power, as illustrated through the 10 largest power plants (based on power generation). Taking the coveted number one spot is the Bruce Nuclear Generation Station in Ontario, Canada. The plant produces 3,000 MW of electricity at the Bruce A plant and, combined with its secondary location, Bruce B, produces a total of 6,300 MW of power. Read more 31

TOP 10

06 TOP 10: GLOBAL INNOVATIONS

07 TOP 10: WHICH CAMPUSES TAKE THE CAKE ON SOLAR ENERGY?

In 2015, solar power ruled the headlines as more and more companies began to join the renewable revolution. In April, we broke down the top schools in the United States progressing into solar and ranked them according to their energy generation from solar. The top three schools included: Mount St. Mary’s University (17,400 kW), Rutgers, the State University of New Jersey (17,417 kW) and Arizona State University (23,567 kW). Read more 32

December 2015

As the Earth’s resources deplete, innovators across the world are working to find ways to compensate for a changing environment: Some of their inventions can help families in need while others may reshape the global energy infrastructure yet all are important. Below is a rundown of the 10 promising global breakthroughs that stand-out among the rest.

Some of the big names making the list include Cyclus – a springdriven gadget that allows users to charge their portable electronics without leaving a car bon footprint; Powerwall, a revolutionary new battery by Tesla that allows homeowners to store and use saved energy. Number one on the list belongs to Energy Kite, an ambitious lightweight wind turbine designed to produce more energy using just a fraction of the normal materials. Read more

05 TOP 10 COAL PRODUCING COUNTRIES IN THE WORLD

We at Energy Digital were curious about which other countries are hard at work mining the dirty fuel known as coal. So according to EIA data— which is as recent as 2012 totals at this time—these are the 10 countries who mine the most coal. It’s worth mentioning that China alone produced more coal in 2012 than all of North America combined—almost four times over and 2015 was no different. The country produced 4,025,377 thousand short tons, a 3.80 percent increase from 2011. Read more 33

TOP 10

04 TOP 10 COUNTRIES USING SOLAR

We’ve heard an awful lot about why solar energy could likely be the main energy staple of the future--and why not? Not only is the technology clean, relatively cheap, reliable and plentiful, but somewhat less talked about though is the impact solar energy has already had today. For more on that, take a look at this infographic produced by One Block Off the Grid, which highlights the top countries using solar. Making the list at number one is Japan, with 3,662 megawatts installed. The country is expected to be a huge player in the solar market very soon. Read more

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December 2015

TEHNEE RT G OY P E 1F 0 FOI C FI2 E 0N1T5 H ’ SO T SO PP I TA 10 LS

TOP 10 OFFSHORE WIND FARMS IN THE WORLD

Wind farms are a major undertaking that use up a lot of space, and sometimes, offshore wind is the solution. In this article, which originally appeared in the February 2015 issue of Energy Digital, we reviewed the top 10 offshore wind farms by sheer generating capacity.

The top three offshore wind farms in the world included: Anholt in Denmark (400 MW), Grater Gabbard in the United Kingdom (504 MW) and London Array in the UK (630 MW). Read more

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TOP 10 TECH COMPANIES USING GREEN ENERGY

The first top 10 of 2015 included highlighting the top 10 tech companies using green energy. In this article, we highlighted everyone from SAP America, Sony, EMC Corporation, Sprint, Cisco, and Apple. Making the top three were Google, which has been a carbon neutral company since 2007; Microsoft, which utilizes more than 1.3 billion KWh of green power annually; and Intel, which utilizes a massive amount of renewable energy at a whopping 3,102,050,000 kWh annually. It uses energy from a number of different sources, such as solar, wind, hydro, and biomass. Read more 35

TOP 10

TOP 10 ENERGY BREAKTHROUGHS

Energy has come a long way over the years. We all rely on energy to use in our daily lives – while at home and when conducting business. Advancements within the energy sector make using energy even more convenient.

Since innovations within the energy sector are ongoing, there are always breakthroughs being implemented to help energy work even more efficiently than it already does.

The list includes everything from real-time energy monitoring tools to body-charging devices, to the world’s first battery-operated airplane and a new long-lasting light bulb that not only last 15 times longer than standard bulbs, but is also 75 percent more energy efficient. However, the number one energy breakthrough is the recently introduced nanomaterial that could potentially increase the production of solar energy.

While the research is still being conducted, researchers are confident that this breakthrough will save homeowners and businesses millions each year. Read more

THE TOP 10 OF 2015’S TOP 10S

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THE POWER OF SIX A super grid in the Gulf Written by: John O’Hanlon Produced by: Richard Thomas

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GCC INTERCONNECTION AUTHORITY

The GCC Interconnection Authority is the body charged with keeping the lights on across the Middle East’s leading economies: we spoke to its CEO Ahmed Ali Al Ebrahim about the authority’s strategic role and some of its successes to date

I

t was on 31 December 2001 that the six GCC Countries (Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman) agreed to establish the GCC Interconnection Authority (GCCIA) for the purpose of interlinking their power systems.

The authority had the backing of GCC leaders and the support of electricity and energy ministers. Though the shareholdings vary, each country has equal representation on the GCCIA board, with the chairmanship rotating every three years, so that no single country drives this initiative. Today the interconnector links the transmission networks of the member states on one unified super grid that spans around 1,200 kilometres of overhead lines and submarine cables.

By 2004 the tender documents for the project had been prepared for Phase 1 of the project connecting Bahrain, Kuwait, Saudi Arabia and Qatar. In 2005, a contract was awarded to the Canadian firm SNC-Lavalin to supervise number of projects. These included the construction of six ABB 400 kV gas insulated high efficiency substations, a high voltage direct current (HVDC) converter station, the installation

MIDDLE EAST

of 830 kilometres of double-circuit 400 kV transmission lines, and 47 kilometres of land and submarine cable. The company also supervised the construction of a central protection, telecommunications and control centre.

This was the first-ever project in the Middle East to use HVDC technology, which enables power to flow between Saudi Arabia, which operates a 60 hertz grid, and the other five states, which operate at 50 hertz. The HVDC station is also the largest of its kind in the world.

Work started early in 2006, and it was months later that Ahmed Ali Al Ebrahim, bringing with him more than 20 years’ experience in power systems and infrastructure projects planning, joined the authority as Director of Operations, Maintenance and Market Operations. “I had to establish processes from scratch, recruit the people, set out processes, rules and operating procedures, as well as be deeply involved in all technical aspects and tests of the project to ensure its successful

Key Personnel

Ahmed Ali Al-Ebrahim CEO Ahmed Ali Al-Ebrahim is the Chief Executive Officer (CEO) of GCC Interconnection Authority. He has more than 28 years’ experience in power systems as well as infrastructure projects planning. Al Ebrahim holds an MBA from DePaul University, USA and an MSc in Electrical Power Engineering the University of Strathclyde, Scotland as well as a BSc in Electrical Power Engineering from the University of Texas

GCC INTERCONNECTION AUTHORITY

HVDC (high-voltage direct current) module is a highly efficient alternative for transmitting large amounts of electricity over long distances and for special purpose applications

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MIDDLE EAST

completion” he recalls.

“It has been a long journey, always presenting new challenges.” The organisation he leads is lean, with just 67 employees, all highly experienced and qualified. The authority works on what he calls the ‘informed client’ model, outsourcing maintenance work to the most reliable contractors, while keeping full control of core operations. “This model has proved very flexible and very economically effective,” he adds.

There was no precedent to follow. “The only comparable system is the Sistema de Interconexión Eléctrica de los Países de América Central (SIEPAC) being installed to link six Central American countries but our

GCCIA 3rd Forum on Power Trade

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Omexom - an international network operating across the Power & Grid chain Omexom is the brand of VINCI Energies dedicated to Power and Grid solutions. Omexom delivers an impressive range of business lines and services to our Power customers around the world: from generation through to substation, transmission and distribution infrastructures.

With its close-knit network of 1,500 business units, VINCI Energies is now a leading provider of energy and information technology services in Europe and throughout the world.

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Our unique expertise makes us the preferred choice for electricity producers, grid operators and managers, large power equipment managers and power-intensive industries.

Every day, our 250 Business Units operating in more than 40 countries with a 12,000-strong global workforce designs and builds the power infrastructures of tomorrow, while maintaining and upgrading those of today.

As an integrator in the energy sector, we support all our customers with complex project management and turnkey solutions. We also supply innovative offerings to manage more conventional development and maintenance projects.

Overhead Lines Maintenance

A key player on the middle east market Omexom Saudi has been providing maintenance services for the Gulf Cooperation Council Interconnection Authority’s assets for the last 4 years, in all GCC countries.

With dedicated and professional teams maintaining GCCIA’s 400kV substations and overhead lines, Omexom operates in all the GCC countries and is expanding into the design and construction of electrical infrastructure: greenfield, extensions, deviations and upgrades in the generation, transmission and distribution fields.

Thanks to the power and skills of the brand network, Omexom can supply a complete offer on the Power & Grid Market and follow its customers all over the world.

Operating in over 50 countries, including 30 outside Europe, VINCI Energies employs 63,000 people and generated revenues of €9.3 billion in 2014.

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A major actor in the Power & Grid market, Omexom delivers an impressive range of business lines and services to our Power customers around the world: from generation through to substation, transmission and distribution infrastructures. Our unique expertise makes us the preferred choice for electricity producers, grid operators and managers, large power equipment managers and power-intensive industries.

Safety and security are our top priority. Omexom shares innovations and best practices in this area across all our Business units, adapting them to local needs.

With a global presence in over 40 countries, Omexom’s 12,000 key Power & Grid experts and 250 Business Units design and build power infrastructures of tomorrow, while maintaining and upgrading those of today.

As an integrator in the energy sector, we support all our customers with complex project management and turnkey solutions. We also supply innovative offerings to manage more conventional development and maintenance projects. Our proactive growth strategy has positioned us as a leader in the Power & Grid market. In 2015, Omexom generated 2 billion Euros in revenue, a ten-fold increase in just 10 years.

Website: www.vinci.com

MIDDLE EAST

“By the end of 2011 we had all six member states interconnected, so since that time we’ve been operating as a single GCC grid for practical purposes” – Ahmed Al-Ebrahim, GCCIA CEO

organisation is much bigger in terms of capacity, the technology that is employed and the size of the systems that we are using,” he explains.

The first substation was commissioned in Kuwait early in 2009, and part of the system went live in the summer of that year. Connecting four previously separate grids. “By the end of 2011 we had all six member states interconnected, so since that time we’ve been operating as a single GCC grid for practical purposes.”

To give an idea of what that meant on the ground, blackouts that in the noughties were something that the Gulf States had grown used to living with became a thing of the past. Since 2009 more than 1,300 potential outages have been prevented through instantaneous intervention by the GCCIA and by the very existence of the interconnector as a regional backbone.

“Consumers would not even have noticed these incidents”, he says. Critical utilities like hospitals and factories have benefited immeasurably.

When something does go wrong, it can be quickly diagnosed remotely from the control centre or even by online engineers

67 The number of staff employed

by GCC Interconnection Authority

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GCC INTERCONNECTION AUTHORITY

“We are looking forward to creating a GCC power market with all six member states participating” – Ahmed Ali Al-Ebrahim

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on the spot, logging in on laptops or handheld devices. In the early days, an outage had to be checked manually, now it is electronically identified and quickly fixed.

“The people in the control centre can have a real time view of what’s happening. We are utilising lots of modern smart technologies, like drones that fly above the overhead line with a camera and can pinpoint the problem, and infrared cameras to detect any kind of hotspot.

“On-line diagnostics can also pinpoint the site of faults on 100s of kilometre of overhead lines to be within few hundred meters. That really speeds up attendance of any faults and repairs. Delivery of a reliable supply in 2009 saw the achievement

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of the first objective, says Al Ebrahim. “Now we are in a new phase of optimisation and improving the reliability of the grid, something we cannot compromise on! Also, we are looking to maximise the economic benefits from the connector by developing more opportunities for power trading. Eventually we are looking forward to creating a GCC power market with all six member states participating.�

In short, if reliability is the number one thing GCC citizens want from their utilities, cost effectiveness is the next. GCCIA can lead the creation of a common energy market to achieve the lowest-cost generation. A bilateral trading system currently gives countries

Salwa control room

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GCC INTERCONNECTION AUTHORITY

Established in 1976 under the name of Saudi Swiss Electro Mechanic Works Co. Ltd. Since its inception in 1976, SSEM has established itself as one of the leading Saudi companies in the turnkey execution of large and diverse construction projects as EPC contractor in power, water, and industrial projects.

Classified as Grade 1 for Electrical, Mechanical and Water & Waste Water Projects in addition to 4th in Civil Works by the Saudi Department of Classification Services • Power Generation, Transmission and Distribution for Overhead Transmission Lines, Substations and Underground Cables.

• Water Treatment, Transmission and Pumping Stations.

• Electrical and Mechanical Services for Industrial, Petrochemical, Commercial and Housing • Operation and Maintenance.

Tel +966-11-4625511 | Fax +966-11-4627804 | Web www.ssem.com.sa | Email ssem@ssem.com.sa

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“Most of the telecoms operators in the GCC are connected with us, and they find our fibre optic network much more reliable than conventional telecom networks” – Ahmed Al-Ebrahim, GCCIA CEO

visibility over capacity in other member states and enables them to place bids using yearly, monthly or daily options. “We are looking to maximise the revenues we make in order to reduce the annual connection fees we currently take from the member states.”

That can be done in several ways. Power is not the only commodity the interconnector carries.

The network has been built to carry fibre optic cables to enable reliable telecommunications needed for core operations of the grid. GCCIA got permission of telecom regulators in the GCC to lease additional spare fibres to licensed operators for data and telecommunications, and these cables sit at the top of the towers, up to 100 metres above ground and safe from accidental or malicious interference – they haven’t been interrupted since operations began, providing very reliable telecom network for commercial telecom operators.

“We contribute to the economy of the GCC by improving telecom services. Most of the telecoms operators in the GCC are connected with us, and they find our fibre optic network

Salwa control room operational management software

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GCC INTERCONNECTION AUTHORITY

Electrical engineer onsite at Fadhil

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much more reliable than conventional telecom networks that are subject to regular interruptions.”

With the GCC electricity market unified, the next step is energy trading beyond its borders, potentially a big earner. In the past the GCC countries have exchanged small amounts of power with its neighbours, to meet emergency shortages, but in the last three years there have been no trade exchanges whatever. “We are not happy about that and mean to change it! There are huge economic opportunities for the GCC countries to grab” declares Al Ebrahim. “We

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intend to develop economic power trading.”

There are big savings to be made here, and GCCIA has estimated this market could be worth $27 billion over 25 years.

Even with enough domestic generation capacity, a more sophisticated system will ultimately enable countries beyond the GCC to balance energy demand and supply, and at the same time save fuel and reduce the environmental impact of power generation.

Energy trading is a long term goal. A more immediate project, currently at the tender stage, is the GCC High Voltage Test Lab being built in the east of Saudi Arabia. “The power utilities have to send equipment overseas for testing after repair or maintenance, which is costly. The lab’s an excellent example of the kind of business opportunity we are seeking, related to our business and with real benefit to the GCC countries, and we are currently 5 percent shareholders.”

Energy efficiency is difficult to assess in the GCC, where the market is skewed by varying rates of subsidy. This gets in the way of real economic trading, based on ‘real’ prices.

Ahmed Al Ebrahim wants to work towards a fair pricing model that can be used by all and that would really encourage power trading between the GCC nations. December 2015 sees GCCIA’s next Forum which will focus on reforming energy pricing in the GCC.

High voltage tower on the Fadhili site

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Superior service Written by Lucy Dixon Produced by Heykel Ouni

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KARAM FEDICS SERVICES

Anticipating their customers’ needs is the thread running through Karam Fedics Services

Head office in Al Khobar

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W

ith decades of industry knowledge and technical expertise behind it, Karam Fedics Services has quickly become a leading provider of life support services in Saudi Arabia and Bahrain. Created in 2009 – with the backing of the Tsebo Outsourcing Group, Africa’s largest provider of life support and facility services in South Africa and Xenel in Saudi Arabia – Karam Fedics Services offers catering, laundry, housekeeping, camp management and much more at oil and gas sites – onshore and offshore – throughout the region. Managing the villages involves, says General Manager Hamid Khan, creating a home-from-home environment for the staff who will be living there. The sites are usually in a remote location, so there needs to be WiFi capability so that the residents can keep in

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touch with loved ones back home. “These guys, often ex-pats, are coming to the Kingdom on a three- or five-year contract, so we try to create an environment which is conducive for them to have a bit of rest and relaxation when they get the opportunity. It’s very important to have that because they are away from their families, so we really try to take care of them,” he explains.

And Karam Fedics Services is now diversifying into other markets says Khan: “Currently, most of the companies we work with are oil and gas, but as the dynamics change, we have to look at ways of creating different offerings, rather than just one or two. There is construction, hospitals, government business and education, for example.”

The dynamics he refers to are, of course, the current pressures in the oil and gas industry, which has led the company to venture into other markets, including government contracts, which has involved a lengthy audit process. Khan says: “We are on the verge of getting our government classification certificate following successful audits by the relevant authorities recently. . Once that happens, it opens up a whole new avenue of opportunities for us – hospitals, education, military, and prisons. And if you win a government tender, and you need 1,000 staff, the visa application process goes much more swiftly.”

Another way the company is managing the impact of the oil price drops is by working closely with its supply chain to ensure they are making the most of economies of scale. Khan says: “We have

The team

Hamid Khan, General Manager

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KARAM FEDICS SERVICES

‘The high quality service is the same across all of the company’s sites, because of this central way of managing the specification and standards’

a central distribution system. Everything we need gets bought in and brought in to our warehouse, where it is processed and then distributed to the various sites. We are not going to have different camps ordering at different prices, it’s more costeffective if it all goes through our central system.”

As well as cutting costs, this system also means that Karam Fedics Services can keep a close eye on the quality of goods it receives. “If a supplier delivers to a site and that particular manager is not really switched on to look for the quality and so forth, they could easily get a product that might be substandard – whereas if it comes through our warehousing and distribution, we can manage

Shahzad Zafar Group of Companies

Shahzad Zafar Group of Companies started its operation in Bahrain since 2007 and 2009 in Kingdom of Saudi Arabia and expanded in year 2013-2014. The company has been recognized by its large scale and wide variety of Import/Export and Sale of Food Stuffs (Fruits, Vegetables & Crops, Dairy, Frozen Goods), Non- Alcoholic Drinks and General Mercantile.

A sole distributor of Unifrutti Products in KSA and Bahrain and a sole distributor of Monviso Water bottles in GCC. Moreover, the company is also a distributor of Delizia products, Dellaves, Anchor Brand & Chiquita in KSA. Thus, Unifrutti became a benchmark for the company’s excellent quality products. Goods are being imported from Chile, South Africa, Italy, Pakistan, and USA. Dairy & frozen products are being imported from Brazil, India, and Australia. The company uses its own build structured Coldstorage rooms in Dammam with controlled temperatures securing each product and maintaining its freshness.

The company is one of the established in logistics and transportation with its largest fleet. Each carrier is ensured with high quality and sensitivity of products while delivering to customers, especially fruits and frozen goods.

Tel +966 13 8476884 Email rizwan_hamza2002@yahoo.com 58 December 2015

We Sell Fresh Fruit And Vegetables YOUSUF NASSER AL MEFRAS TRD EST PO No. 2739, dammam 31463, Saudi Arabia Mobile 00966555861394

MIDDLE EAST

Management team

that process as well,” Khan says. The high quality service is the same across all of the company’s sites, because of this central way of managing the specification and standards.

One big difference is the offshore sites because they, clearly, have a separate set of challenges due to the fact Karam Fedics Services is not on site.

Khan explains: “We deliver our product to the port in a refrigerated container and then it gets loaded onto a boat to get taken out – that process we don’t manage so we have to rely on the rig management team to ensure everything is delivered on time and at the right temperatures.” For this reason, the team look for products with a long shelf life, such as hardier vegetables. “We have introduced vacuum sealing as well and we are looking at a future stage

915 Number of jobs to be supported

by Karam Fedics Services

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KARAM FEDICS SERVICES

Hamid Khan, General Manager

“We are hands on and see the clients on a regular basis, so we know up front if there is an issue bubbling underneath the surface and we can deal with it straight away”

to introduce CO2 into this to further extend the shelf life of some products,” Khan adds.

Back on land, each site has a manager who is in contact with the client on a daily basis. This feedback is crucial for Karam Fedics Services and is part of a wider programme of listening to its customers’ needs and opinions. Khan says: “For every 10 sites, we’ve got a supervisor who also liaises with our clients. And then we have a customer relationship management tool which, through an outside supplier, will phone clients at random just to get feedback on how the service is.

And finally, on each site, we have communication boxes that people fill so we get feedback from the actual customers on site as well.”

Khan himself, along with the operations director and the operations team, also keeps pretty close to the action. “We are hands on and see the clients

– Hamid Khan, General Manager Human Resources & Government Relations Dept.

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Imtiaz Shah, Supply

Mohammed Mohsin,

Frank Iddon, Director

Chain Director

Chief Accountant

- Operations and Business Development

on a regular basis, so we know up front if there is an issue bubbling underneath the surface and we can deal with it straight away. Listening to feedback is absolutely essential, because it’s pointless providing a service that people are unhappy with.”

The company employs around 915 people – this has doubled since it started in 2009 – and sourcing staff with the right level of expertise is key to its success. “We make sure we have the right quality people with the right sort of skills but, more importantly, we make sure there are mechanisms in place to retain them. We listen to their requirements, make sure there is career progression and that there is no mismatch between the job and the actual individual. We believe in investing in our staff so that they are driven to provide superior service to our customers. As such we retain staff and keep our clients satisfied,” Khan concludes.

Mubarak Saad Al-Ajmi, Admin. Manager and Legal Affaris

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ADC Energy Systems is switched on for development Written by: Sheree Hanna Produced by: Richard Thomas

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ADC ENERGY SYSTEMS

As a leading Engineering, Construction and Procurement contractor the company is exploring growth opportunities across the GCC and beyond

A

DC Energy Systems, based in Dubai, is building on its expertise gained over a successful 10 years in business by seeking to grow not only its capabilities, but also its geographical reach.

The company, which has reached AED 1.7 billion turnover since its inception in 2005, is a turnkey contractor for Cooling Plants, Energy Services, Grain Handling and Infrastructure.

The EPC (Engineering, Construction and Procurement) contractor has been awarded over 20 district cooling plants during that period and is currently working on bringing to completion six plants by the end of 2015 and into the first half of 2016 within the GCC region.

ADC built its first district cooling plant for Dubai’s iconic development The Palm Jumeirah, the palm-tree shaped, manmade island, which is home to a number of luxurious hotels and holiday accommodations including the five-star Atlantis Hotel.

CEO Ibrahim Sleiman said: “This was the first major project we won through our partnership approach and since then there have been almost 20 projects scattered between Dubai and Abu Dhabi in the United Arab Emirates, and other GCC countries such as Qatar and Saudi Arabia.

District data Collectively, to date the district cooling plants generate a total cooling capacity nearing 600,000 tons of refrigeration; its sub-stations are designed

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District Cooling Plant

and equipped for 450MW and its cooling impact may reach up to some 240 million square feet of occupied space. They have a total combined footprint of about 26,000 square metres and serve seven leading utility developers and operators, as well as master developers within the GCC region.

With some 200 professionals on board, along with a 350-core construction team, Sleiman explained that ADC is keen to further explore its capabilities throughout its energy services division, and new sectors like Renewable Energy.

The forward-thinking company is also looking at how it can further utilise the renewables sector in a

62.5m The amount of Revenue in USD generated

by ADC Energy Systems in 2014

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TECHNO STEEL TRADING & CONTRACTING W.L.L Hand in Hand to Achieve Engineering Excellence

All mechanical works in district cooling plant projects Process & uulity piping for oil & gas, petrochemical industries Building services piping - chilled water and fire fighung Structural steel fabricauon and erecuon Compressed air systems Providing project support services for all our specialiues with qualified and expereinced technicians

P.O.Box:

, Doha - Qatar Tel: Fax: Email: info@technosteel.com.qa Website: www.technosteel.com.qa

ADC ENERGY SYSTEMS

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bid to bring greater efficiencies and benefits for not just its customers, but also for the environment.

Exciting times are ahead in the GCC region with events such as the World Expo 2020 to be hosted in Dubai and the 2022 FIFA World Cup in Qatar.

All of these are opportunities that ADC is keen to exploit and is already involved in, or pitching for the business they are creating. The company is in the finishing stages of completing a new district cooling plant in Qatar’s $45 billion, ambitious and ground-breaking new town development of Lusail, which is being purpose-built to cope with the demands the World Cup is expected to generate.

ADC Energy Systems is looking at further opportunities in Jordan, Kuwait and Saudi Arabia to produce the larger 100 megawatt plants

Powering on First and foremost, ADC, building on its wealth of experience in Engineering, Procurement and Construction and as a natural growth from the District Cooling sector, through its Energy Services arm is currently looking at how it can develop Combined Cooling Heating & Power (CCHP) schemes.

For this purpose, ADC is targeting industrial and institutional clients whose connectivity to the main grid or need for back-up power in addition to their requirements for comfort or process cooling and heating qualify them as attractive prospects for CCHP schemes.

Sleiman said: “District cooling systems are very efficient, but they are intensive power users of the national grid with an average 4050 megawatts per plant. Through the power w w w. a d c e n e r g y s y s t e m s . c o m

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generation, transmission and distribution cycle, there is a lot of energy wastage with nearly -60 percent of the original energy source lost.

“So that is not very efficient and what we want to do with CCHP is to produce the energy where you need it by combining your power generation with your cooling/heating requirements in one plant and optimise the production of the power side by capturing the waste heat wherever you produce power.

“By so doing, we can almost increase the effectiveness of the energy source from 35-40 percent up to 75 percent or maybe even higher.”

Sleiman was keen to point out that ADC is not pursuing pure power production, but targeting the sector of distributed energy plants which deliver energy at the point of use.

Exploring renewables Another strategic focus for the company is the use of renewable energy sources such as solar panels and the company is currently investigating the use of Concentrated Solar Panels.

“The reason we still use fossil fuel for our plants is that with solar energy plants you need a lot of space which is hard to find in urban areas,” said Sleiman. “So for now we are concentrating on smaller-scale solar plants. We are looking to participate in an Egyptian set of tenders which will come out shortly, which will range between 20 and 30 megawatts of power production.

“We also anticipate to a smaller extent that there

Mr. Ibrahim Sleiman - CEO

Mr. Khalil Issa - MD

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ADC ENERGY SYSTEMS

“The forwardthinking company is also looking at how it can further utilise the renewables sector in a bid to bring greater efficiencies and benefits for not just its customers, but also for the environment.”

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will be further opportunities from Jordan and Kuwait, and with Saudi Arabia much larger 100 megawatt plants which we will target in due time.

“As a leading and specialised EPC contractor, we are able to team up with international EPC contractors and technology providers to work hand-in-hand on the implementation of such projects.”

New frontiers

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Geographically speaking, ADC has already qualified and participated in tenders as far afield as Algeria to the North and eastwards as far as India and Bangladesh for its grain handling business.

Huge infrastructure growth in Saudi Arabia means ADC has its hand firmly on that tiller.

Sleiman said: “There is huge opportunity in Saudi at the moment and when you add up all the other GCC countries, Saudi can

Qatar’s $45 billion new district cooling plant

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ADC ENERGY SYSTEMS

Our CCHP strategy is a natural outgrowth of our district cooling plants to second generation cooling/thermal energy plants and moving into renewables.

equalise if not exceed the development of all of them put together pending more regional stability in terms of security and oil prices. “There are essentially two prongs to our growth, one is expansion horizontally by pushing our CCHP strategy which is a natural outgrowth of our district cooling plants to 72

December 2015

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second generation cooling/thermal energy plants and moving into renewables. “The second is location wise, expanding beyond our core markets to tackle projects in the wider GCC as well as in North Africa and potentially central African countries, where we are bidding for a few projects right now.� w w w. a d c e n e r g y s y s t e m s . c o m

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Well ahead

with Weir

Written by John O’Hanlon Produced by Anthony Munatswa

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WEIR OIL & GAS SERVICES

Weir Services’ expertise allows production of oil and gas in some of the world’s most challenging operating environments and the company provide critical components and services to its clients in the Middle East, where low oil prices are not inhibiting its long term strategy

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ne of Scotland’s proudest companies, founded by brothers George and James in 1871, Weir is known around the world for its pumps, and everything that stems from pump and high pressure flow technology, like valves and safety systems in a wide range of industrial applications. Its oil and gas division designs and manufactures pumps and ancillary equipment for global upstream and downstream oil and gas markets, and is a very strong business in the Middle East, which depends so heavily on hydrocarbons for its revenues.

The Middle East business, together with Europe, North Africa and the CIS countries has been headed up since 2009 by Managing Director Vikas Handa, who has held senior positions with the group since 1999. “Basically, my territory is the eastern hemisphere,” he says, “though I am based in the UAE and the main focus of my attention is the offices we have in Dubai, Abu Dhabi, Oman, Aberdeen, Azerbaijan, Kazakhstan, Saudi Arabia and Iraq.”

The O&G division deals with two main product lines manufactured by the company, he

AFRICA

The wellhead is a critical point of any well, both from a production and a safety point of view

explains, high pressure pumping (where Weir is the global leader supplying equipment to extract shale gas and tight oil) and wellhead equipment.

The wellhead is a critical point of any well, both from a production and a safety point of view. Weir has traditionally led the market in valves and other components, such as blowout preventers (BOPs), however 2012 saw the company make a step change when it acquired the American wellhead manufacturer Seaboard for $675 million.

The acquisition was a strategic one, designed to capture the growing fracking market in the States, however this equipment gave Weir, in any case the largest provider of O&G equipment in the Middle East, with significant new capacity. To meet the demand in the local market, it was decided to build a new manufacturing facility at its heart,

1500 Number of employees at Weir oil and gas Services

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WEIR OIL & GAS SERVICES

Weir has built a 250,000 square foot plant in Dubai to manufacture Seaboard wellheads

so Weir has built a 250,000 square foot plant in Dubai to manufacture Seaboard wellheads and also Weir’s SPM branded valves and high pressure flow control equipment, delivering them to customers in the region at a competitive cost.

The new plant employs more than 300 people, and is staffed by professionals from more than 20 different nations. “It is right at the heart of the marketplace, close to the customer, catering for their needs and meeting their demand for tighter lead times while ensuring the highest quality standards in a trusted product. It is the first such plant in the UAE,” says Handa with apparent pride. Dubai, he adds, is a place which will always

UAE, Dubai, JLT, Cluster T, +971 (0) 4 4529802 Iraq, Basra, Al Brathiya,+9647 801099758 E-mail: info@srg-iq.com Web: www.srgme.com

Silk Road Group “SRG” is an oil and gas service company with offices in Basra, Baghdad and Dubai, UAE. Since its establishment in 2004, SRG’s assets have increased rapidly, providing its clients in the energy sector in Iraq with quality and proactive services and support strategies to assist in achieving their business objectives. SRG’s Basra workshop is built over 75,000 sqm in North Rumaila and with the presence of variable skills on site. The group is currently supporting activities and operations in Um Qaser, Zubir Oil Field, Rumaila Oil Field, West Qurna 1 & 2, and Badra.

Our services include EPC contracts, installation and fabrication, shutdown activates, consultancy and procurement. Our competitive advantage is to work close with our trusted clients offering tailored services and solutions that are fit-for-purpose to meet our clients’ business objective and targets.

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VISION Despite of the current challenging times, SRG is progressing with relentless commitment to safety and quality, unlocking its potential to improve its value to its clients and their strategic growth.

CORE VALUES Safety, Creativity, Competency, Determination and Services Oriented.

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attract the best talent.

There’s no denying the industry is in a tighter spot than it has ever been, nevertheless this is the best time to make the investment. “We are a new entrant in this market. Seaboard was the fourth largest wellhead manufacturer in North America but had little share in the ME. We are starting from scratch in this market place at a time when everybody is looking for ways to save money, and we can help them do that. The customer focus is on two fronts: who can supply them a quality product in the most cost effective way and who can deliver in the shortest time and give the fastest service? We are already well known for the quality of our service, and that is how we have been growing our business. We have built this plant locally so that we are closer to our customers, can respond in the fastest time, and by manufacturing in the region we can make sure our costs are minimal so we will be cost effective.”

It’s Weir’s OEM pedigree that differentiates it and has established it locally. Much more than simply a supplier of product, from its fully equipped local workshops it runs complete maintenance operations and takes on maintenance management projects all the way from the wellhead to the processing plant and power stations for companies like Lukoil, BP, Shell and Adnoc. “Since I joined 16 years ago, our businesses here have grown substantially.

Now we are moving into the wellhead pressure market and marketing it strongly in the region.

It’s Weir’s OEM pedigree that differentiates it and has established it locally

‘By manufacturing in the region we can make sure our costs are minimal so we will be cost effective’

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WEIR SERVICES

Our company is established in Iraq 2005 with its main office in Basra, is one of the leading Iraqi firms in the specialized field of both mechanic electric Engineering services, general trading and contracting, Our company participated in many projects including overland and marine equipment installation and maintenance.

Our Projects • Designing Power Distribution Boards • Electric And Plc Controllers • Rehabilitant A Wide Variety Of Cranes

Our Clients SOC, IPC, EPPC and Many Others Tel +9647801009426 | +9647806548731 Email info@durrat-alkhaleej.com | Web www.durrat-alkhaleej.com 80 Alhayat Bld. | Ashar korneesh | Basrah | Iraq

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December 2015

Tel +91-2827-252857, 252858 | Fax +91-2827-252856 Email sudhir@arrowtechnocast.com Web www.investmentcastingmfg.com

WEIR OIL & GAS SERVICES

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We are making big investments in manufacturing plants and growing our capabilities in the region.”

Weir has landed major maintenance contracts with all the key players, notably Saudi Aramco, Saudi electric company and the mining concern Maaden in Saudi Arabia and Adnoc, Adco and Adma in the UAE. In Iraq it has long standing maintenance management contracts with Russia’s Lukoil. Last year Weir acquired the Weatherford OCTG threading/machine shop and inspection business in Basra. The move to the Weatherford purposebuilt facility will provide the infrastructure and space it needs to expand these services. “By investing and acquiring the former Weatherford machine shop business and growing our presence in Iraq, we have demonstrated our commitment to the country,” says Handa.

It was also in 2014 that the company signed a contract with Lukoil to provide general w w w. w e i r o i l a n d g a s . c o m

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WEIR OIL & GAS SERVICES maintenance services for the West Qurna-2 oilfield in Southern Iraq, one of the largest undeveloped oilfields in the world. The two year agreement, worth a total of $98 million, covers delivery of mechanical, electrical, maintenance and pipeline services for the related production facilities, including the Mishrif Central Processing Plant. Weir invested more than $8 million in establishing its service centre in Basra, Iraq and it is the first in-country location to offer fully comprehensive maintenance services for all kinds of rotating equipment, valves and wellheads. The

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December 2015

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facility was also the first in Iraq to obtain API and ISO licences, he adds.

In Iraq 50 percent of the highly committed workforce is local and Weir is investing in improving the country’s engineering skills base. It runs a state of the art training and apprenticeship programme for its own employees and makes it available to its partners. Petroleum Development Oman (PDO) is a case in point: Weir has a contract with PDO to give Omani nationals mechanical and professional training as well as workshop management. “We train them on the job, and that contract went so well that PDO has extended it for the next six years and added 40 people to that training programme. It has been accredited by the ECITB, so we certify those national engineers with a proper vocational engineering qualification.”

Capital may be tight, but production needs to be maintained when oil and gas are the main sources of prosperity. “Our strategy is simple,” says Vikas Handa.

“We are in this business for the long term. I have seen many downturns in my career though this one is probably the most challenging so far.

But we will see it through and there are always opportunities. That’s why we are investing in new products and new facilities, ensuring we can grow market share by being even closer to customers delivering engineering solutions they need, when they need them.

API valve

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A Major Boost To The Ghanaian Economy Written By Sam Jermy Produced By Anthony Munatswa

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AT U A B O F R E E P O R T

Strategically located in the Gulf of Guinea, the brand new development will be a dedicated oil and gas free port

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December 2015

A

tuabo Free Port is set to provide a major boost to the economy of Ghana, as the $700 million facility begins construction next year before becoming operational in 2017. Having recently completed a number of preliminary activities onsite, the company and China Harbour Engineering Company have signed a construction agreement establishing the latter as the main contractor of the project to build a dedicated three-quay port. It is also estimated that over 1,000 jobs will be created as a direct result of the project.

In terms of maritime activity, there are three clear areas for the impending facility, which will become Ghana’s third major port. One is an offshore logistics base where goods are received for the offshore oil and gas industry, collated and marshalled onshore and then shipped offshore to the rigs and other vessels during the exploration, appraisal and field development and production phases.

The second area is value-added work such as subsea fabrication; this provides the infrastructural platform for companies to do more work in-country which means the company keeps aligned with local content regulations in Ghana.

Thirdly, there will be the rig and vessel repair sites where the vessel owners will be able to come in and have their vessels repaired or rigs maintained and repaired by various service companies.

Steven Gray, Director at Atuabo Free Port, said: “We have a number of companies who’ve

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Video: Atuabo Free Port

signed up to MoUs with us and are already present in Ghana supporting the oil and gas industry. In addition to the three main areas, there are other elements of the project, such as the logistical movement of personnel.

There’s an aerodrome on the site where fixed wing planes can fly in from Accra, and then the rotary wing helicopter operations would operate from there to the offshore platforms.

“Then we will have the technology park area where companies who are just seeking office space other than industrial facilities can locate themselves. Predominantly, it’s an international effort: you have to have

1,000 Number of jobs to be created by the project

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AT U A B O F R E E P O R T

We Are Creating A Brighter Future!

• Marine Engineering • Road and Bridge • Railway

• Airport • Complete Plant • Dredging and Reclamation

China Harbour Engineering Company Ltd. (CHEC) is a world-renowned international contractor. CHEC has 40 overseas branches and offices with business activities covering more than 70 countries and areas including Ghana, Ivory Coast, and lots of Africa countries. The company is currently employing over 7,000 domestic and international staff to undertake 10 billion USD worth of projects.

CHEC is focused on basic infrastructure construction, and principally engaged in the survey, design, construction and supervision of road, bridge, port, terminal, channel, railway, tunnel, airports, civil work and other infrastructure construction, capital dredging and reclamation dredging, the investment of transportation infrastructure, development and operation of urban complex, estate development and etc.

CHEC prides itself on providing a full service to its clients and uses its international engineering experience, global business network, talented management team and robust financial backing to offer clients a wide range of service options such as D&B, EPC, PMC, BT , BOT and PPP. Apart from the contractor for AFP Project CHEC has also executed the Ghana Fufulso-Sawla Road Project, Ivory Coast Abidjan Container Terminal Project, Guinea Conakry Container Terminal Project and etc. We are focusing on provide an one-stop solution for our client from the feasibility, design, construction and operation. We are working towards a win-win situation for all our client and partner.

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Tel 00225 2135 7650 | Email checwa@chec.bj.cn | Web www.chec.bj.cn

AT U A B O F R E E P O R T

AFRICA

international contractors that the financing partners are comfortable with - firms that have the expertise to handle the construction risks while delivering services on time.

“But in addition to that we’ll have a situation where if companies want warehouses or offices built, then that area is being identified as the area where Ghanaian contractors can execute their work.”

Regional hub In terms of the capital structure, the Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund as a freehold; a further 35 percent will be purchased by Ghanaian state enterprises such as Ghana National Petroleum Corporation and Social Security and National Insurance Trust. Then the international shareholders and a number of international partners will make up the remaining equity.

Because Atuabo is set to be a dedicated hub for the oil and gas industry and not just a rudimentary container shipping port, Gray believes it can subsequently become much more of a regional player in West Africa than a country player in that respect. He said: “This will be particularly true for the rigs; we will be meeting a high demand that is not currently met in this area. The offshore supplier vessels have greater choices, but there are still capacity issues in West Africa in terms of facilities that can

Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund

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Quality and Excellence

Tel: +233 (0)302 742030 Fax: +233 (0)302 742035 info@taysec.net w w w. t a y s e c . n e t

No.1 14th Avenue New Achimota Estate P.O.Box OS 1010 Osu, Accra Ghana

At Taysec we strive in all aspects, from project inception to maintenance of the finished facility to provide quality results on time and within budget.

Atuabo Free Port anticipates that Hull Blyth & Co. Ltd is the foremost provider of agency services to non-liner and liner shipping throughout West Africa. With coverage of all major ports through our established network of offices in Ghana, Nigeria, Cote d’Ivoire & South Africa and through hub agency services in the rest of West and East Africa.

Hull Blyth is strategically positioned to provide a comprehensive and quality service to the shipping, Oil & Gas Principals seeking comprehensive and reliable shipping services for its operational excellence deliverables in a region offering rapid growth and strong future prospects.

Our Services Cover • Vessel Agency • Liner Agency Services • Oil & Gas Services • Tanker Services • Bulk Operations • Logistical Support – Clearing & Forwarding • Travel Agency & Protocol Department

• Crew Change & Premium Travel Services • Project Cargo Support • Terminal Operation, Warehousing & Collateral Management • Deconsolidation • Procurement Service • Real Estate & Estate Management Services • Onboard Vessel IT Support services

Hull Blyth Ghana Limited Gateway House | Fishing Harbour Road | P.O Box 214 | Tema Tel +233 (0) 303 219219 Email enquiriesghana@hull-blyth.com

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there will be work opportunities in Ghana for offshore activities from 2018

AFRICA

repair and maintain offshore supply vessels.

“Also with the infrastructure deficit on the continent, and Ghana is no different from other African states, this is a project where they’ve opened up the private sector to come forward with a solution: they’ve addressed the infrastructure deficit for this particular sector without using their balance sheets.

“There are no government guarantees and there is no payment for constructing this facility from the Government of Ghana, so it frees up additional government funds that could be used to develop existing port infrastructure and other maritime sectors.

“We see the potential certainly in the Ghanaian offshore context, the port being able to reduce the operational cost of oil by up to 90 cents to one dollar a barrel, which is significant.”

The port could be able to reduce the operational cost of oil by up to one dollar a barrel

Direct benefits During the construction phase, about 70 percent of the workforce will be Ghanaian. During the operational phase, Atuabo Free Port is a platform that allows other companies to execute their work, so although Gray cannot speak for the tenants coming into Atuabo and where they will source their people from, they will be encouraged to employ Ghanaians who have the skills they require. Certainly Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance.

As part of social engagement with the w w w. a t u a b o f r e e p o r t . c o m

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Key Personnel

Steven Gray Director

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community area surrounding Atuabo, one of the social intervention programs is the establishment of a community based manpower agency set up by the majority shareholder and international partners. Resources and the profits accruing to the agency will be reinvested back to skills development so there is a sustainable skills development funding for the community who today largely have fish or agricultural based careers.

Gray said: “They don’t necessarily have all the skills needed for the oil and gas industry, so this is a way to support skills development through a sustainable business model.

AFRICA

“We anticipate that there will be quite a lot of work opportunities in Ghana for the offshore activities from 2018 onwards. So it certainly is going to be an energetic market in the early years. But I think, you can look at Atuabo Free Port as a regional hub as well.

“Ghana for all the right reasons is seen as a gateway to other countries in West Africa; the English language, the rule of law, a stable democracy – it’s all there. We’re already seeing that with Expro, Halliburton, Schlumberger having their regional offices located in Ghana.

“As the capacity and quality of the indigenous companies improve, they’ll be able then to sell their services to other markets and clearly you see the regional markets as their first entry points to support industries. We’re seeing a lot of that already manifesting, where the Ghanaian companies are exporting their skills to Liberia, Searra Leone and so on.”

Time is clearly money in Oil and Gas: when you have a rig operation, it is costing anywhere from $0.5 million to $1 million per day, so even an hour’s delay costs companies a considerable amount of money. Atuabo Free Port can offer firms the ability to have a sustainable business, not just for the exploration phase but also the development and production phase and so that may well make marginal fields profitable. This is just one of the reasons why Atuabo Free Port will be a welcome addition to the West African offshore oil and gas industry from 2017.

‘Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance’

Company Information INDUSTRY

Energy HEADQUARTERS

Accra, Ghana PRODUCTS/ SERVICES

Ports & Terminals

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Reshaping the NDT industry from within In-house innovation and technology separates this energy equipment company from the rest Written by: Eric Harding

Produced by: Vince Kielty 95

APPLUS RTD

N

o fancy slogans or big marketing strategies are necessary here: The difference between Applus RTD and its competition is the company’s innovation and technical excellence. With a platform based on radiography, ultrasonic and imaging technology, Applus RTD has in-house state-of-the-art capabilities to develop and build/ produce its own equipment.

Because of this, Applus RTD, the global leader in Non-Destructive Testing (NDT) and inspection services, can tailor its equipment to high-end niche markets in both the 96

December 2015

pipeline and LNG tank construction industries.

“We develop the technology, and we build the mechanics around it,” said Herman Quakkelsteijn, Asia-Pacific Manager of Major Construction Projects. “That’s what differentiates us. It’s our own product.

“Most of our competitors buy off-the-shelf AUT equipment or RT equipment. They’re supplied by the likes of the known industry giants and offer services with their backup support. At Applus RTD, we have our own technical experts and R&D people. If we need a quick

AUSTRALIA

adaptation for a new project, we do it in-house. We can be quite flexible in adapting to what the client requires.”

Ahead of the competition Rather than using static methods that only allow for single still images or “X-rays” taken of the inside of LNG tanks, Applus RTD has a dynamic methodology which takes images as it moves along the weld.

This real-time digital radiography — known as Rayscan — allows Applus RTD to work up to 30 times faster than its competitors.

“Rayscan is a technology we’ve developed in-house,” said Quakkelsteijn. “We developed a technology where rather than using a film and holding it steady, we can scan it in one inspection.”

Applus RTD initially launched this technology last year for an LNG tank construction project in the Asia-Pacific nation of Brunei. Now, Applus RTD brings the technology to Australia for the first time in the country’s history by winning a contract from on the Ichthys LNG Project’s onshore facilities.

The inside of an average LNG tank

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is up to 90-100 metres in diameter.

On average, companies have to inspect about 340 metres to do one horizontal weld, according to Quakkelsteijn. With each radiographic film being only 40 centimetres, it would take 1200-1300 shots on one weld to fully inspect it Using Rayscan, Applus RTD can complete this inspection in a 98

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couple of days. Using conventional radiography, this same task would normally take 2-4 weeks.

“Rayscan is a dynamic methodology of applying radiography,” said Quakkelsteijn.

“It’s unique and it’s patented. No one else has that technology.”

Meanwhile, Applus RTD’s latest innovation hasn’t been accepted by

SECTOR

“We develop the technology and we build the mechanics around it.

That’s what differentiates us. It’s our own product” — Herman Quakkelsteijn, Asia-Pacific Manager of Major Construction Projects

the industry—yet.

IWEX is a new imaging-based technology that provides a 3D image of the weld to see the defects in the rod’s orientation or sizing. Quakkelsteijn said that while Applus RTD has already used the technology to do some parallel testing on some pipe line projects, it is in the process of being introduced commercially to the industry.

According to Quakkelseijn, it is only a matter of time before the technology is adopted as a w w w. A p p l u s R T D . c o m

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APPLUS RTD

AUSTRALIA

standard. “IWEX is going to be the next AUT state-of the-art system that the industry will adapt to,” said Quakkelsteijn.

People come first Applus RTD will handle most of the construction NDT for the Ichthys LNG Project, which has an expected 40-year life cycle, with a combination of 50 new and existing staff members working during the project peak .

The radioactive source used for conventional radiography raises several safety concerns, and has safety boundaries up to 45

metres. But Applus RTD’ Rayscan technology only requires a safety radius of a mere five metres, which allows multiple workforces in the tank at the same time.

“That’s a massive safety improvement, and also has a massive operational benefit to the client,” said Quakkelsteijn. “We can work during the day shift, where traditionally, they would close an entire tank for the night shift to allow exclusive access for NDT companies to do their work. We don’t need that. We can do it during the day.”

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APPLUS RTD and innovation generated by Applus RTD, having competent, reliable employees is critical to the company’s success. Because of this, Applus RTD has its own inhouse training department, where employees learn not only the technique and applications, but also the theory behind the system and its associated procedures.

“Everything stands or falls with the competence and experience of the people who execute the inspections,” said Quakkelsteijn.

“If you don’t inspect in accordance with the specifications and the codes, you fail in the eyes of the client, regardless of how good the equipment is.”

Benefits of innovation Applus RTD works directly with the

AUSTRALIA

contractors instead to working for the asset owners, which puts it under a different spotlight within the industry.

“We still have very strong relationships with the technical experts within the asset owner groups, .,” said Quakkelsteijn.

“We target them with information because they ultimately will drive the new technology and specifications. That allows us to put pressure on to accept those new technologies as well.”

Applus RTD promotes its technologies to pipeline contractors and LNG tank construction companies, before going through a qualification process to prove the reliability and accuracy of the system. A good example is the work Applus RTD has done in Brunei as well as in Darwin, which allows a

“At Applus RTD, we have our own technical expert and our own R&D people. If we need a quick adaptation for a new project requirement, we do that in-house. So we can be quite flexible in adapting to what the client requires” —Herman Quakkelsteijn, Asia-Pacific Manager of Major Construction Projects w w w. A p p l u s R T D . c o m

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APPLUS RTD

construction company to build an LNG tank in less time.

With the construction boom beginning to come to an end, several Australian companies are Changing the industry looking toward Asia and attempting Applus RTD’ technology can reduce to expand into maintenance the 5-6 month construction period services. Applus RTD is no different, for the LNG tank’s inner tank wall by as it’s currently doing feasibility several weeks. studies on its Rayscan technology “That’s a significant saving,” said to inspect heavy wall plates in the Quakkelsteijn. “For those weeks, a Asian market. lot of the workforce assigned to that “Because there are no tank is not required. That’s where we earthquakes in Australia, a typical see the advantages of continuing to LNG tank in Australia requires the develop new technology, because strength of a wall thickness of 30 it keeps us in a very comfortable millimetres. In some Asian countries, position.” that wall thickness goes up to 104

December 2015

AUSTRALIA

Company Information INDUSTRY

Energy HEADQUARTERS

94 Discovery Drive Bibra Lake Western Australia Australia, 6163 FOUNDED

1981

50 millimetres because they’re on earthquake zones. That is an extreme wall thickness to do radiography,” said Quakkelsteijn.

Once again, Applus RTD has the edge on the competition. “Our Rayscan technology can actually penetrate that wall thickness,” said Quakkelsteijn. “If you take a vertical weld of one LNG plate, each plate is about 12x4 metres. A vertical weld of four metres would take roughly 16 hours to inspect with conventional radiography.

We can inspect that in one and half hours. That’s the kind of significant improvement on operational performance. It’s an example of what our technology can offer.”

EMPLOYEES

10,000 REVENUE

Euro 450 million

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A PR

Through the deployment of new su the group

RODUCTIVITY COMPLEX

ugar factories and the expansion of sugarcane plantations, p is synonymous with quality and sustainable development Written by: Flรกvia Brancato | Produced by: Carolina Majer 107

U S I N A S A N TA T E R E Z I N H A

F

rom a small distillery mill to its first sugar factory, Usina Santa Terezinha Ltda attributes all its success and steady growth to its professional and skilled administration, made up of the pioneers and successors of Meneguetti family and staff.

Founded in June 1961 in the Iguatemi district, Paranรก state (PR), the company currently 108

December 2015

has 11 production units. For the fourth consecutive year, Usina Santa Terezinha has been one of the companies awarded by the Seal Millennium Development Goals (MDGs).. The certification is given to organizations that, through projects, contribute to the achievement of the eight Millennium Development Goals set by the UN, thus contributing to sustainable

BRAZIL

development in their respective regions.

Journey and Growth Between 1979 and 1981, through the National Alcohol Program— PROÁLCOOL—funding, the group started the expansion of its industrial park. In the following years, the Paranacity, Tapejara and Ivaté units were inaugurated and

then had major renovations later.

With the objective to increase competitiveness and meet market demands, the Logistic Terminal was built in Maringa Paraná state in 2002. It provides bulk warehouses for sugar and grains, a limestone terminal, mixing fertilizer and tanks for storage of liquid.

As part of its logistics complex, the company included a road-rail w w w . u s a c u c a r. c o m . b r

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terminal of fertilizers in Paranaguá district, Paraná state, and a new unit in the city of Terra Rica, through the acquisition of San José farm, responsible for sugarcane farming since their first harvest in May 2007.

Taking advantage of the sector’s favorable growth moment, Usina Santa Terezinha acquired Distillery Alcohol Cocamar, located in Sao Tomé, founding a new company, Usina São Tomé S/A. Through the lease of Coocarol’s industrial facilities, in Rondon, the company also took over the manufacturing

Maringá Unit

activities of Usaciga plant, located in Cidade Gaúcha, totaling eight units in the group.

Production Units Maringa/PR - The office concentrates corporate, administrative, financial and commercial areas that coordinate the activities of all units in Usina Santa Terezinha.

Terra Rica/PR - Terra Rica unit controls all industrial activity led by the Center for Integrated

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Paranacity Unit

Operations.

Paranacity/PR - With a 35,000-hectare plantation area, about 85 percent is used for the harvest: 1,500 hectare for seedling and 3,500 hectare to plant new trees.

Ivaté/PR - In Ivaté, the installations of the current milling and equipment have capacity to process up to 9,600 tons of sugarcane per day.

Iguatemi/PR - The unit focuses its production mix on VHP sugar

and can grind up to 9,000 tons of sugarcane a day, in addition to producing both 1,000 tons of VHP sugar and 180,000 liters of hydrated alcohol.

Tapejara/PR - Besides the production of sugar and alcohol, Usina Santa Terezinha also produces energy through the Tapejara unit, with generators of 50.5 MW capacity. Seventy percent of production is earmarked for Eletrobrás.

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A SOLUTIONS COMPANY With more than 65 years in the south of Brazil, we sell new and used CAT ® machines, for the mining segment , construction , paving, forestry , marine, power generators , parts and rental equipment. We provide service solutions for Caterpillar ® Equipment, with specialized technical and mechanics . This attitude shows our commitment to resolving the Customer Expectations.

/pesacat

@pesacat

www.pesa.com.br © 2013 Caterpillar. All Rights Reserved. CAR, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow”, the “Power Edge”trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may nor be used without permission.

95 YEARS OF HISTORY COMMITTED TO CUSTOMERS SUCCESS

www.dedini.com.br

BRAZIL

unit produces 1.2 million tons of sugarcane, depending on mechanical harvesting.

The group has branches of Umuarama, Rondon, Gaucho City, Moreira Sales and Paranaguรก, all in Paranรก state, and the Eldorado plant, in Mato Grosso do Sul state.

Governance Policies Seeking responsible and transparent management, Santa Terezinha has invested in its administrative structure to ensure a

professional team that can properly develop the principles and practices of corporate governance.

The company opted to have risk management that includes the criteria established by market regulators, including analytical tools to assist in the measurement of specific strategies and processes.

The business strategy is supported by a motivating leadership and well-defined purposes, which coexist with the quality control, safety, health

Meeting of board members and management of various production units

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Program of activities to celebrate the World Environment Week

and environment. This helps in generating value, valuing people and building relationships aimed at sustainable development.

UN Global Compact Committed to the principles of sustainability, Usina Santa Terezinha is a signatory of the UN Global Compact. Voluntarily, the company officially committed to develop 114

December 2015

economic actions in an ethical and transparent way.

UN Global Compact is a proposed initiative aimed at mobilizing the international business community to adopt internationally accepted business practices and fundamental values. Based on ten principles, the goals of the initiative revolve around human rights, labor relations, the environment and anti-corruption.

BRAZIL

Company Information NAME

Usina Santa Terezinha INDUSTRY

Energy HEADQUARTERS

Maringรก/PR - Brazil E S TA B L I S H E D

1961 PRODUCTS / SERVICES

Sugar, Alcohol and Energy

This initiative includes the participation of UN agencies, companies, unions, non-governmental organizations and other partners needed to build a more inclusive, equitable and sustainable global market.

To join the UN Global Compact, a company must forward a letter to the UN SecretaryGeneral, stating its commitment to respect the ten principles. The initiative already has more than 7,000 signatory company-members, articulated by 145 countries. w w w . u s a c u c a r. c o m . b r

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ESSA’s work is to bring electricity to more households & businesses in Santander, Colombia 116

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Rural and urban electrification in Santander, Colombia demands constant infrastructure efforts, and ESSA delivers Written by: Mateo Rafael Tablado Produced by: Jassen Pintado

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E L E C T R I F I C A D O R A D E S A N TA N D E R S . A .

E Electrificadora de Santander S.A. headquarters, located in Bucaramanga

lectrificadora de Santander S.A. (ESSA), the utility company serving the Santander Department and other municipalities in the Andes region of Colombia, is a subsidiary of the “Empresas Publicas de Medellin” (EPM) business group of utility companies serving different areas in the region. ESSA is a mixed capital investment venture for electric power generation, distribution and commercialization, serving 96 municipalities, including 87 in Santander, with others in the Bolivar, Cesar and Northern Santander departments.

ESSA power generation resources include three hydropower and two thermoelectric plants, with one of them — the Termobarranca thermoelectricity plant — serving exclusively an Ecopetrol refinery.

ESSA is certified under domestic Standard Model for Internal Control (MECI 2005) and also under global standards such as ISO 9001:2000, ISO 14000, OSHAS 18000 and ISO 26000.

Electric power source since 1891 The origins of ESSA date to 1891, when businessmen Julio Jones and Rinaldo Goelkel took on the challenge of bringing electricity to growing Colombian industries and households.

Throughout the years, different companies opened for business, also bringing electricity to the Santander department and its capital, Bucaramanga. In 1975, ESSA

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consolidated, supported by the infrastructure developed throughout the years by these previous enterprises.

Once into the 21st century, ESSA was partially privatized, with EMP becoming the major stockholder, leaving 20 percent to the Government of Santander.

Five focus points ESSA’s operations have five main areas: · User experience · Guaranteed service quality · Loss control and reduction project · Tech upgrades · Growth and organizational development To ensure a strict compliance with these policies, ESSA developed a series of programs, each focused on specific tasks, from infrastructure investment and development to increasing the outreach to the users.

Properly trained, skilled staff working for ESSA

Key People

Mauricio Montoya General Manager for Electrificadora de Santander ESSA ESP Mauricio Montoya graduated in civil engineering from the Los Andes University, in Colombia. He earned an MSc degree in Construction Engineering and Project Management at the University of Texas at Austin, and became a specialist in Finances and International Business at Universidad de La Sabana, also in Colombia. He was appointed as General Manager for Electrificadora de Santander in mid2015. Previous experience includes tenures in the fuel sector, as Project Manager for TGI (Colombia, natural gas pipelines) and as Managing Director for Ecogas. Prior to the fuel and energy sector, he worked for Scott Robins Construction (Miami, USA) as project manager.

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Thousands of households and businesses rely on ESSA’s excellent performance

Accident prevention and staff safety is key to everyday chores at ESSA

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Infrastructure and maintenance One of ESSA’s most valuable labors is supplying electrical power to rural areas; the “Iluminemos Santander” (“light up Santander”) program establishes agreements with departmental and national government agencies, joining forces to create infrastructure and support maintenance to power grids. ESSA’s 90 percent area coverage is set to increase by late 2015, when electric power will be supplied to 3,800 more households. The “Remos” Program (electric substation relocation and upgrades) brings major maintenance labors to the infrastructure by replacing deteriorated elements and providing uninterrupted service

L AT I N A M E R I C A

to more than 600,000 buildings with a daily supply of three million kWh. Efforts toward rural areas are crucial for ESSA’s overall operations, since the urban areas of Bucaramanga and Barrancabermeja are only 30 percent of their customers.

Automation Substation monitoring was improved after deploying SCADA supervision software and hardware in every substation. The remote operation system was first installed in 2013, upgrading the company’s surveillance operations.

The best service is supplied when backed by substantial resources and investments

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Personnel safety The most important training received by ESSA’s field operations staff is safety measures and accident prevention. Strict security protocols are in effect at every ESSA substation, both for the company’s employees as well as for third party workers, like contractors, cleaning and maintenance personnel, and others.

Environmental and community affairs ESSA’s involvement with its surrounding

Maintaining uninterrupted, high quality service is a priority for ESSA and its qualified professionals

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community is displayed by the company’s sponsorship for many sports in their community, including pro, amateur, team, individual, men and women teams. In the same spirit, cultural and academic activities are supported all over their serviced areas.

The company also commits to environmental causes. In mid-2015, ESSA and CAS (the Autonomous Regional Corporation of Santander) established an agreement to preserve the area’s rainforest.

From back-end tasks to personal customer service, ESSA staff is always ready to perform

Local schools benefit from activities organized

by ESSA as part of its SCR programs

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Optic fiber network under maintenance and upgrade operations

L AT I N A M E R I C A

Other efforts by ESSA are aimed to increase the community’s awareness about electrical power supply, by creating campaigns appearing in their social media outlets, TV and radio, and promoting energy awareness events in local schools.

Plans for the future ESSA’s current development plans are set to run from 2013 to 2027, with a total investment of $242 million. More than 90 percent of the funds are destined to infrastructure optimization and expansion, 2.2 percent to plant maintenance, and the remaining 7.4 percent for marketing and commercial operations.

The most benefited project under this plan is the expansion program from 2015 to 2019, which foresees 58 miles of new power lines for the current grid, expanding ten existing substations and building two more.

What lies ahead for ESSA may result in further accomplishments, which demand constant efforts. Once the company’s goals are fulfilled, the Santander Department and surrounding municipalities will benefit from attracting important investments.

Company Information NAME

Electrificadora de Santander S.A. (ESSA-EPM) INDUSTRY

Electric power generation, distribution and supplying HEADQUARTERS

Bucaramanga, Santander, Colombia FOUNDED

1891 EMPLOYEES

900 REVENUE

US $300 million WEBSITE

www.essa.com.co

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