Energy Digital – October 2015

w w w.e n e rg ydigit a l.c o m

O c to b e r 2015

ENERGISING

Australia RENEWABLE OR NON-RENEWABLE? THE NUCLEAR DEBATE SPECIAL REPORT

LYNAS CORPORATION: The Comeback Kid

TOP 10

NUCLEAR POWER PLANTS

DIRECTOR’S COMMENT

Future Energy O N O U R C O V E R T H I S month is Ergon

Energy, the government-owned utilities company that provides energy to approximately 720,000 customers across nearly 97 percent of the state of Queensland, Australia. In an exclusive interview, General Manager Peter Billing provides an inside look at the innovative methods currently being used by the company and lets us know what we can expect to see from the company in the near future.

Also in this month’s issue, we look at the benefits of nuclear power and explore some of the issues being debating by experts, politicians and concerned citizens alike.

Nuclear power is one of energy’s most controversial resources: from the concern about waste management and nuclear accidents to the argument over its status as renewable (or nonrenewable), it seems the energy source can’t catch a break; however, with nearly 500 nuclear power plants across the globe – and more being built every year – the obvious benefits are becoming undeniable.

Where do you stand on the nuclear debate?

Jennifer White Director of Content, WDM Group jennifer.white@wdmgroup.com 3

CONTENTS

Features

6

RENEWABLES The Nuclear Debate WASTE MANAGEMENT Managing Nuclear Waste

12 20 4

October 2015

TOP 10 World’s Largest Nuclear Power Plants

Energy Association 70 Sustainable of New Zealand (Association)

62

PROMMAC

Energy 28 ADC Systems

78 Ergon Energy

COMPANY PROFILES We feature this month’s best energy companies that the industry has to offer - see Ergon Energy page 78 MIDDLE EAST

78 Ergon Energy

28 ADC Energy Systems

110 TAG Oil

36 Coastal Municipalities Water Utility (CMWU)

122 Lynas Corporation

48 Oman Electricity Transmission Company

AFRICA 62 PROMMAC

130 Lynas Corporation 142

Solvi Valorização Energética

130 First Solar

BRAZIL 142 Solvi Valorização Energética

178

OCP Ecuador

152 Neuman & Esser 164 ABESCO (Association)

AUSTRALIA

170 ABEEOLICA (Association)

70 Sustainable Energy Association of New Zealand (Association)

LATIN AMERICA 178 OCP Ecuador 5

R E N E WA B L E S

The Nuclear Debate Neither directly derived from nature nor directly dependent on a limited resource, the debate continues: Is nuclear power renewable or non-renewable?

Writ ten by: JENNIFER WHITE

BY STRICT DEFINITION, renewable energy is infinite energy sourced from nature, such as geothermal heat, ocean and rainwater, wind, and sunlight.

Nuclear power, specifically, is not directly derived from nature, e.g. solar or wind, nor is it directly dependent upon a limited resource, e.g. oil or coal.

Typically, nuclear power is generated 6

October 2015

in power plants by nuclear reactors through fission. The reaction from fission produces kinetic energy that is translated to heat which, according to green energy resource Conserve Energy Future (CEF), can produce enough power to electrically run turbine generators in power plants.

Since this process does not require any fossil fuels, it’s

regarded as clean—by some.

The believers Overall, many experts say, nuclear energy can be a very beneficial means of producing power. For example, instead of having to rely on windy or sunny conditions, nuclear power can be generated and used 24 hours a day, 7 days a week.

Extensive research by the CEF also resulted in reports that nuclear energy does not release gases like carbon dioxide and methane. Creating and moving this energy is far more simplistic than fossil fuels since it doesn’t require as many raw materials.

It’s also highly efficient: burning 100 metric tons of coal produces the same amount of energy as the fission 7

R E N E WA B L E S from just 28 grams of uranium.

In addition, nuclear energy has an estimated lifespan of at least 100 years, which is far more than most fossil fuels. It’s also less expensive than some other forms of electricity, which means that some power plants are able to use the same nuclear reactor for decades—some up to 60 years—at a minimum cost to operate.

The non-believers Despite its proven benefits, not everyone is convinced that nuclear energy can be defined as renewable.

In 2009, the interim directorgeneral for International Renewable Energy Agency (IRENA), Helen Pelosse, disregarded nuclear power in its consideration as a renewable energy resource during an interview with Reuters: “IRENA will not support nuclear energy programs because it’s a long, complicated process, produces waste and is relatively risky.”

Waste management does seem to be an undeniable problem (see our article on page page 12), however nuclear power plant owners and employees are aware of the radioactive waste that is 8

October 2015

“Typically, nuclear power is generated in power plants by nuclear reactors through fission, which does not require any fossil fuels and is thus regarded as clean — by some.” a byproduct of fission—and it is not as bad as people assume.

According to CEF, many plants have developed ways to contain radioactive waste and prevent harm to the environment and are making efforts to ensure the leftover waste cannot be reused to make weapons.

A (marginal) win for renewable In February 2015, the United States’ Arizona Senate Committee on Water and Energy lobbied for the bill “SB 1134.” According to James Ayre of green living resource CleanTechnica, this bill determined that “nuclear energy from sources fueled by

T H E N U C L E A R D E B AT E

Despite its proven benefits, not everyone is convinced that nuclear energy can be defined as renewable uranium fuel rods that include 80 percent or more of recycled nuclear fuel, and natural thorium reactor resources under development” are, indeed, considered to be “renewable.”

The bill passed by an extremely small margin, where only a single vote pushed the bill in the Arizona Senate Committee on Water and Energy’s favor.

State senators had a lengthy

argument about whether to consider nuclear power as renewable energy as reported in the Phoenix New Times by Miriam Wasser.

Senator David Bradley stated that he “appreciates the fact that technology is allowing us to use rods a few times, but that doesn’t make it renewable.”

Senator Lynne Pancrazi had similar concerns, stating that she “can’t agree that nuclear is renewable.”

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R E N E WA B L E S

Nuclear power has gradually received approval as a renewable energy source in non-political circles

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October 2015

T H E N U C L E A R D E B AT E

“According to CEF, many plants have developed ways to contain radioactive waste and prevent harm to the environment and are making efforts to ensure the leftover waste cannot be reused to make weapons.”

Meanwhile, nuclear power has gradually received approval as a renewable energy source in non-political circles.

Late last year, Martin Fackler of The New York Times and plenty of other news sources reported on the nuclear reactor building in Fukushima, Japan that had to be shut down because a few nuclear fuel rods had melted. That isolated incident isn’t stopping other parts of the world, like Virginia in the United States, from building full-scale nuclear reactors with more powerful fuel rods.

Lightbridge nuclear engineering company in Tysons Corner, Virginia, manufactures the rods, and notes the challenges associated with it.

Company CEO Seth Grae spoke to David Talbot of Technology Review about the project: “We’re trying to do what is practical

Overall, many experts say, nuclear energy can be a very beneficial means of producing power and what customers are asking us to address. The biggest problem is how to address the economics of nuclear power in a world of abundant natural gas, and with safety and security costs rising in the wake of the 9/11 attacks [in the United States] and Fukushima [in Japan].”

With both sides staying strong in their beliefs, the debate continues: renewable or non-renewable?

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WA S T E M A N A G E M E N T

Mana Nuclear

With hundreds of nuclear facilities a being built, countries and compa safer methods of nuclear wast

W R I T T E N BY: J E

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.

And while it goes without saying that this form of power has always brought with it a certain amount 12

October 2015

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-ofmind risk?

According to the World Nuclear

aging r Waste

around the world, and dozens more anies are working hard to develop te transportation and storage.

ENNIFER WHITE

Association, it is not as extreme as many believe. As recently as August 2015, the Association stated the following: • The amount of radioactive wastes is very small relative to wastes produced by fossil fuel electricity generation.

• Used nuclear fuel may be treated as a resource or simply as a waste.

• Nuclear wastes are neither particularly hazardous nor hard to manage relative to other toxic industrial wastes.

• Safe methods for the final disposal of high-level radioactive waste are technically proven; the international consensus is that this should be geological disposal.

As of 2013, it was reported that 13

WA S TE M A N A G E M E N T

there were 437 operational nuclear reactors creating electricity, and all of the 437 reactors were located in 31 countries. In 2015 there are 67 civil fission electric reactors under construction. These new facilities are in 15 countries, including some in Gulf States, Asia, and 28 in the Peoples Republic of China. Regardless of how “risky” the risk, we still need solutions.

Options for storage and disposal of nuclear waste Some of the radioactive waste from nuclear power plants is considered low-level radioactive waste (LLW).

The goal is to find safe and environmental solutions to the storage of this waste that is acceptable to the public

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October 2015

Most of the LLW is sent to land-based disposal sites where it is expected to be kept of long-term management.

This is how around 90 percent of all nuclear waste is managed around the world.

When intermediate level waste (ILW) and high level waste (HLW) is considered, there have been different management options for this waste investigated. The goal is to find safe and environmental solutions to the storage of this waste that is acceptable to the public. Some countries have just begun to do the research, while other countries, such as Finland and Sweden have advanced with their investigations and in gaining public support for places to keep this waste. In the United States, there is a site below ground in salt formations in the state of New Mexico where waste from defense related sites is currently stored.

Many countries, such as the Czech Republic, Finland, France, Japan, the United Kingdom and the United States, use near surface disposal. This means the LLW is stored at ground level, or at depths of 10 meters for these countries.

Sweden and Finland also store

MANAGING NUCLEAR WASTE

Many countries, such as the Czech Republic, Finland, France, Japan, the United Kingdom and the United States, use near surface disposal ILW materials for short periods of time at these disposal sites.

The International Atomic Energy Agency (IAEA) recommends that near surface disposal can be used in near-surface facilities at ground level. These facilities can be set up with engineered barriers, or without the engineered barriers. When nuclear waste (LLW) is stored at surface level, there is a protective

covering placed over the materials that is a few meters thick. The wasted containers are put in vaults, and after the vaults are filled, and then they are backfilled. Eventually they will be covered and capped with an impermeable membrane. Then the membrane is covered with topsoil.

Often these facilities will be built with some sort of drainage system added, and sometimes there are 15

WA ST E M NAAGGEEMM ETN T WA S TE MA AN EN

“The most important safety guarantee in transporting nuclear waste and many other hazardous materials is found the way it is packaged, and there are different levels of packages depending on the danger of the product being shipped.�

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October 2015

MANAGING NUCLEAR WASTE

also gas venting systems added.

Near surface disposal facilities can also be built in caverns that are below ground level. When near surface disposal sites are begun at ground level, access is from the surface.

When the surface disposal site is in a cavern, access to the nuclear waste site is tens of meters below the surface of the Earth, and the material is accessed through a drift.

Another way to store nuclear waste that is being investigated is deep borehole disposal. This method has been indicated to have a high potential for “robust” isolation of waste, and could present a way to dispose of some wastes that might be able to go into storage faster than current methods, according to the U.S. Department of Energy.

When sites are chosen for these facilities, the long-term expectations for changes in climate must be taken into consideration. The waste associated with LLW and ILW generally has a half-life of about 30 years so stability must be taken into consideration for at least that length of time.

Another form of radiation comes from uranium mining. While the

uranium is being mined, “fine sandy tailings” are left behind. These remains of the mining process have almost all of the radioactive elements that are naturally occurring in uranium ore. Companies make dams that collect the tailings, then they are covered with clay and rock which is intended to stop the leaking of radon gas and made the radioactive materials stabile in the long-term. In the short-term, these materials are often covered with water for a few months, after which it will have about 75 percent of the original radioactivity.

The global approach French radioactive waste disposal agency Andra is in the process of designing a deep geological nuclear repository in Bure in Eastern France.

This site has clay which they believe will be a good way to keep the nuclear waste from leaking and causing other difficulties. They believe this repository will be able to operate at up to 90 degrees C, which they think will be reached about 20 years after the nuclear waste has been stored.

Belgium is considering a similar process for storing spent fuel and HLW. Their investigation into a 17

WA ST E M NAAGGEEMM ETN T WA S TE MA AN EN disposal process involves placing the waste in high integrity steel containers, then in excavated tunnels with the clay, which is self-sealing. This clay is selfsealing and has low permeability so that almost no groundwater can get into the nuclear waste. The Netherlands is considering a similar method.

The UK uses Nirex Phased Disposal Concept which is intended to store fairly large volumes of ILW and LLW. The nuclear waste is sealed into cemented stainless steel containers.

These containers are then stored in a repository that is below the water table. Eventually, the waste will be backfilled with special cement

which is intended to prevent waste from reaching the groundwater.

Similar forms of storage of nuclear waste are considered in France, Japan, Sweden and Switzerland.

Transporting nuclear waste The most important safety guarantee in transporting nuclear waste and many other hazardous materials is found the way it is packaged. There have been recommendations by the International Atomic Energy Agency that have been implemented around world as part of the legal provisions for transporting these materials. These standards and recommendations make it relatively

When sites are chosen for these facilities, the long-term expectations for changes in climate must be taken into consideration.

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October 2015

MANAGING NUCLEAR WASTE

The UK uses Nirex Phased Disposal Concept which is intended to store fairly large volumes of ILW safe to transport the waste no matter what method is being used.

There are different levels of packages depending on the danger of the product being shipped.

There are different designations, for example Type B or Type C. The larger the letter, the more care needs to be given to the package. When examined, prior to the transportation, things such as radiation shielding, mechanical thermal characteristics and tightness and quality assurances are examined.

It can be difficult to find the cost of transporting and storing nuclear waste, but in 2012-2013, the UK spent about £1.6 billion. In Germany, the reported costs were from USD$50 million to USD$70 million a year, just to transport the nuclear waste.

With the hundreds of nuclear facilities around the world, and dozens more being built, it is apparent that nuclear energy is not going away soon. It is incumbent on countries and citizens to find safe places to store the waste from these facilities.

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TOP 10

TOP 10 World’s Largest

NUCLEAR POWER PLANTS

Nuclear power has become one of the most sought after types of energy today – and these 10 plants generate the most of all

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

10

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) listed below.

Palo Verde Nuclear Generating Station Location: Arizona, United States Site Capacity: 3,942 MW Located on the Gila River, which is usually dry except during the late summer rainy season, the Palo Verde Nuclear Generating Station was first commissioned in 1986 and is the only large nuclear power plant not located on a significantly-sized body of water.

Operated by the Arizona Public Service, the plant is the largest in the United States yet features just three reactors. It is owned by several

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9

NUCLEAR POWER

Qinshan Nuclear Power Plant Location: Qinshan, Zhejiang, China Site Capacity: 4,038 MW The Qinshan Nuclear Power Plant has the largest number of reactors at one location – seven – with two additional reactors currently under construction. Most of these reactors are mid-sized, generating between 298 MW and 700 MW of power each.

The plant, which was first commissioned in 1985, is operated by the Qinshan Nuclear Power Company and has the capacity to generate 4,038 MW of power, not including the new reactors yet to come online.

Already the largest nuclear power plant in China, the country has also discussed plans to develop an additional two reactors for the site at a later date.

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TOP 10

8

Cattenom Nuclear Power Plant Location: Cattnom, France Site Capacity: 5,448 MW

Oi Nuclear Power Plant Location: Oi, Fukui Prefecture, Japan Site Capacity: 4,494 MW

Located on the Moselle River, the Cattenom Nuclear Power Plant is the third largest in France and has an annual generation of 34,084 GWh. The initial reactor was commissioned in 1979, and all

Japan’s second-largest nuclear plant behind the currently non-operational Kashiwazaki-Kariwa Nuclear Power Plant (see sidebar) is the Oi Nuclear Power Plant.

First commissioned in 1979, this older plant has just two operational reactors. Two additional reactors (the oldest) were taken offline in September of 2013, and no current plan exists to bring them back online.

The plant is managed by Kansai Electric Power Company and sits on 460 acres of land in a smaller city. The plant’s design allows for as much as 4,494 MW of power by net capacity, and it produces 32,808 GWh of power annually.

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October 2015

four were operational by 1991.

Owned by the EDF, this plant utilizes pressurized water reactors that produce about 1,300 MW of power each and, when all reactors are operational, has a capacity of 5,448 MW.

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NUCLEAR POWER

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Zaporizhia Nuclear Power Plant Location: Enerhodar, Ukraine Site Capacity: 5,700 MW Commissioned in 1985, the

Paluel Nuclear Power Plant Location: Paluel, France Site Capacity: 5,528 MW

Zaporizhia Nuclear Power Plant is the second largest in Europe.

This six-plant facility uses pressurized light water nuclear reactors, which each generate about 1,000 MW of power.

Similar to Cattenom, the Paluel Nuclear Power Plant also uses pressurized water reactors to create as much as 5,528 MW of power through its four total reactors, each of which generates a maximum of 1,330 MW of power.

Commissioned in 1984, this plant uses the water from the English Channel for cooling. EDF, the operator of the plant, is the secondlargest utility company in the world and reports that, on average, the plant provides 32 billion KWh of power to the nation’s grid each year.

This state-owned plant is run by Energoatom, and generates more than 20 percent of the country’s total electricity generation. Its overall net capacity is 5,700 MW of power. The plant does not run all six reactors all of the time, but its six generators can produce half of Ukraine’s nuclear energy.

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TOP 10

4

Hanbit Nuclea

Location: Jeo South Korea

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Gravelines Nuclear Power Station Location: Nord, France Site Capacity: 5,700 France is one of the largest consumers of this type of power: Up to 75 percent of the country’s electricity comes from its nuclear plants.

The Gravelines Nuclear Power Station, located about 12 miles from Dunkerque and Calais, is the largest in Europe with an annual generation of 38,462 GWh. First commissioned in 1980, this plant is owned

by EDF, one of the largest power companies in the world, and is home to six nuclear reactors—each of which has the capacity for about 951 MW of power.

Interestingly, the warm water created from the plant helps local fish farmers in the area raise European sea bass.

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October 2015

NUCLEAR POWER

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Hanul Nuclear Power Plant Location: Gyeongsangbuk-do, South Korea Site Capacity: 5,881 MW The Hanul Nuclear Power Plant, first commissioned in 1988, is also operated

by Korea Hydro & Nuclear Power. This impressive plant has six pressurized water reactors and is poised for growth, with two new reactors likely to be completed by 2018.

This plant’s unique design allows it to withstand 6.5 magnitude earthquakes, and the newer reactors being built at the facility will meet guidelines to withstand 7 magnitude tremors. The Hanul plant has an annual generation of about 48,160 GWh of power.

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TOP 10

Bruce Nuclear Generation Station Location: Ontario, Canada Site Capacity: 6,300 MW The Bruce Nuclear Generation Station sits on the edge of Lake Huron and occupies 2,300 acres of space. It is the largest generating station in the world based on total reactor count, and is the largest plant in North America by size.

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.

First commissioned in 1977, the plant is owned by Ontario Power Generation and has an annual generation of 45,000 GWh. It’s important to note that not all countries and operators release detailed information about their plant’s current electricity generation, and revenue may be slightly skewed due to different calculation methods.

However, it is safe to say that nuclear power energy will continue to grow as more plants develop and more reactors come online to meet the growing needs of the world’s population—and these 10 are just scratching the surface.

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October 2015

1

WORLD’S LARGEST NUCLEAR POWER PLANTS

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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 – DCP generate a total cooling capacity nearing 600,000 Tons of Refrigeration; The electric power

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November 2015

ENERGY

District Cooling Plant

required for feeding the DCPs amount to no less than 450 MW of power stations, and it’s cooling. . The DCPs 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

62.5m The amount of Revenue in USD generated

by ADC Energy Systems in 2014

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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renewables sector in a 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.

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 which is currently looking at how it can develop Combined Cooling Heating & Power (CCHP) schemes.

For this purpose, ADC is targeting l 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

Mr. Ibrahim Sleiman - CEO

Mr. Khalil Issa - MD

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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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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November 2015

users of the national grid with an average 4050 megawatts per plant. Through the power 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

ENERGY

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.

Qatar’s $45 billion new district cooling plant

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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ADC ENERGY SYSTEMS

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

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November 2015

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 the fact 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 smallerscale 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

ENERGY

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 specialized 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.”

Company Information INDUSTRY

District Energy / Construction HEADQUARTERS

New frontiers Geographically speaking, ADC has already qualified and participated in tenders as far afield as Algeria to the West 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 equalise if not exceed the developments of the other countries in the GCC region put together pending more regional stability in terms of security and oil prices.

“There are essentially two prongs to our growth, one is expansion in different sectors by pushing our CCHP strategy which is a natural outgrowth of our district cooling plants to second generation cooling/thermal energy plants into renewables.

“The second is territory 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.”

Dubai FOUNDED

2005 REVENUE

USD 62.5 million(2014) PRODUCTS/ SERVICES

A leading provider of industrial-grade plants & systems in the Thermal Energy sector.

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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Coastal Municipalities Water Utility (CMWU) Delivering World Class Water Services Written by: Nye Longman Produced by: Richard Thomas

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C O A S TA L M U N I C I PA L I T I E S WAT E R U T I L I T Y ( C M W U )

Amid trying circumstances, Gaza’s Coastal Municipalities Water Utility is attracting international support for its timely and much needed projects

Improving water services

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October 2015

T

he Costal Municipalities Water Utility (CMWU) is responsible for providing the people of Gaza with its full complement of water and waste water services. The utility is going ahead with its projects (which total roughly $1.6 billion) in an effort to restore optimal water services in Gaza and is doing so against the backdrop of Israel’s ongoing conflict with Hamas.

Operations The CMWU’s remit is to deliver integrated, environmentally safe water and sanitation services to the Gaza strip, making use of the area’s natural aquifer, as well as using innovative solutions to diversify water supply and secure effective waste water solutions across the region.

The utility uses a combination of desalination and treatment plants in order to secure the

MIDDLE EAST

CMWU headuarters

best possible offering for its customers.

CEO Monther Issa Shoblaq outlined how the formation of the utility in 2005 had filled a vital gap with its full service package. He said: “You cannot depend on 25 fragmented departments to manage everything, from water works and new wells, to tanks, collections, treatment and disposal, so we mobilised significant investment in order to improve the water service through becoming a strong operator.�

While it uses the most modern and upto-date technology across its facilities, the utility has faced the challenge of maintaining operations while the war between Israel and Hamas raged all around. From an operational point of view, the fighting saw the destruction of water networks and facilities to the tune

850 Number of staff employed

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Masoud and Ali Contracting Company, known in short as MACC, one of the diversified, leading, most experienced and oldest existing contracting companies operating in gaza strip and west bank, was established in 1984 in response to the urgently growing demand for specialized companies in a rapidly developing environment. It has since grown to sustain itself over the years as an innovative leader in the field based on mutual trust with clients to improve efficiency, provide rapid execution while ensuring high quality performance and considering all safety precautions. This premise is based on extensive portfolio of projects in which macc has had major determinate role.

SUPPLIER PROFILE

MASOUD AND ALI CONTRACTING COMPANY Masoud & ali contracting co. (Macc) will provide prime contracting services satisfactory and sufficient for the long-term benefit of our clients, costumers.

Macc’s mission is based on providing comprehensive work, quality control, and safety for all works within the contractual duration of the projects, in addition to cost effectiveness to meet our national obligations to support the economic development and civilization in palestine .We are committed to providing reliable, amicable, and professional services to our valued clients and to being supportive to local businesses and social activities, friendly to the environment as well as being proactive in the socio-economic environments.

In order to accomplish our goals macc operates through premising offer adequate spacing and working conditions for its staff as well as housing all specialized departments and necessary integrated facilities. Among these are: 1. Construction management department.

2. Financial and administration department.

3. Procurement and technical department.

4. Health/ safety department 5. Quality control department.

6. It department.

MIDDLE EAST

“The CMWU’s remit is to deliver integrated, environmentally safe water and sanitation services to the Gaza strip, as well as using innovative solutions to diversify water supply and secure effective waste water solutions across the region” of some $34 million and resulted in the loss of up to 30 percent of its power supply.

The only power plant in the Gaza Strip was destroyed in 2006 and, since then, the community has only been able to satisfy 50 percent of its electricity needs. The utility has been able to mitigate this problem, at least to some extent, by deploying backup generators across its facilities.

Continuing to operate in these conditions has required innovative thinking; alongside fitting backup generators, the CMWU has even used old sections of an Israeli wall for the construction of a new sewage lagoon.

Shoblaq was proud of what the CMWU had achieved despite this, he said: “Our capacity to provide services, in terms of infrastructure, is advanced. We provide 98 percent of the population of Gaza with water which you just don’t see in any other countries.”

International support The CMWU has managed to attract high profile donors who are keen to assist in rebuilding

Palestine’s children deserve the best water infrastructure

Delivering a community service

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C O A S TA L M U N I C I PA L I T I E S WAT E R U T I L I T Y ( C M W U )

Support from various goevernments helps roll out improvements

Improving water services

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October 2015

Gaza, which include the World Bank (WB) as well as the Islamic Development Bank (IDB).

Alongside other prominent donors such as UNICEF, the European Union, ICRC, AFD and various international government donors, CMWU have secured upwards of $1.6 billion intended to secure clean drinking water and consistent waste disposal for the whole of Gaza.

Securing the support of donor governments and organisations has enabled the utility to prevent the water service from deteriorating despite all that has happened and has enabled it to continue to roll out improvements to its networks as any other water company would do.

Shoblaq explained: “On the waste water side,

MIDDLE EAST

only 70 percent was covered by the sewage networks; we expanded this sewage network to avoid waste water pollution because these uncovered areas were served by septic tanks.

“In accordance with the Palestinian water sector plan in the late 90s, the need to build up non-conventional water sources using brackish and sea water desalination plants was recognised and relevent measures adopted. We now have 20 brackish water plants, which vary in output from 50 cubic metres per day, to 50 cubic metres per hour.

“We have a small sea water desalination plant financed by the Austrian government which produces around 600 cubic metres per day; we expanded this with funding from the IDB and World Bank to produce 2,600 cubic metres per day.”

By 2023, the CMWU wants to reach an output of 100 million cubic metres per year through its desalination operations and will achieve this through the construction of two dedicated plants at a cost of roughly $500 million sourced from the European Union and IDB. In addition, CMWU in cooperation with Palestinian Water Authority (Water Sector Regulator) has launched the construction of two central waste water treatment plants; one in the Middle Governorate and the other in the Southern Governorate with a total amount of around $130 million. The two plants are financed

by KfW, the Japanese Government and the IDB.

Monther Issa Shoblaq, CEO of CMWU

“By 2023, the CMWU wants to reach an output of 100 million cubic metres per year through its desalination operations and will achieve this through the construction of two dedicated plants at a cost of roughly $500 million” w w w. c m w u . p s

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C O A S TA L M U N I C I PA L I T I E S WAT E R U T I L I T Y ( C M W U )

Desalination has the potential to meet Gaza’s needs by 2023

Settlement tanks in the Gaza Strip

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October 2015

Talent Management Before 2006, conditions were less tense in the region, andShoblaq was keen to emphasise that there had been a transfer of knowledge and skills between his 850 staff and their Israeli counterparts; he was adamant that dissemination of knowledge was essential to providing the most efficient and world-class service. He said: “We train our teams regionally whenever we have the opportunity; especially when we have the chance to send along our senior managers.�

Furthermore, Shoblaq highlighted how the spirit of completion could be used even during trying circumstances and had further contributed to a sense of solidarity across

MIDDLE EAST

Company Information INDUSTRY

Water and Sanitation Utility HEADQUARTERS

Palestine FOUNDED

2005 EMPLOYEES

850

employees of every level. He added: “In terms of incentivising our staff, we have an award for the best worker in a particular field and a system of evaluating their performance through a yearly award: this can be certification, recognition or financial incentives.�

The determination of the CMWU to deliver its crucial water and sanitation services to the people of the Gaza Strip cannot be over emphasised. It is expanding, rebuilding and driving excellence across the spectrum of its operations and, through working with its local and international partners and donors, the utility is making massive progress towards providing the best possible water and waste water services to the people of the Gaza strip.

PRODUCTS/ SERVICES

Sanitation and waste water management; water extraction and services

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Turning Potential Challeng Written by: Sam Jermy Produced by: Richard Thomas

ges Into Opportunities 51

O M A N E L E C T R I C I T Y T R A N S M I S S I O N C O M PA N Y

OETC has invested OMR120 million in infrastructure works to evacuate the power from the power plants in Ibri and Sohar

The firm is investing in its network infrastructure so that it can grow at a similar rate to the country’s economy over the coming years

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October 2015

T

he Oman Electricity Transmission Company (OETC) has planned an investment program worth an estimated 750 million Omani Rials (OMR) over the next 15 years, to support its 2030 vision that aims to expand infrastructure to meet increasing customer demand.

As part of the new long-term national planning, the company will complete turnkey engineering, procurement and construction projects as part of the multi-million Rial investment, following on from the OMR100 million invested to enhance operations last year.

Dr Adil Al-Busaidi, Asset Management and Planning Manager at OETC, said: “As a

MIDDLE EAST

Key Personnel

AL Said Al-Hadabi CEO

company we faced an average of 9 percent growth annually over the last decade and that is a lot of effort in terms of planning. Currently we have a load demand of around 5GW and we expect that to be in the range of 16GW in 2030 so investment is essential if we are to provide over three times the existing demand. “Each year we work to increase our capability so we can help deliver more projects, such as the OMR120 million infrastructure works to evacuate the power from the power plants in Ibri and Sohar. Increasing our project delivery capability is essential in order to turn the high demand growth risk into investment

Engineer Ali Al Hadabi has assumed the leadership of Oman Electricity Transmission Company S.A.O.C. since September 2008. During his time, OETC has embarked on a significant capital investment program in the Main Interconnected System, which is the vital lifeline of the Sultanate’s power infrastructure. He is responsible for power transmission business across the north of Oman and the south of Oman.

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opportunities. Basically, we need to engage more contractors, consultants and manufacturers in order to achieve that as well as enhancing our own investment management capabilities.

“We used to operate high voltages of 132kV and 220kV but now we’re embarking on the construction of 400kV transmission system assets as it allows us to have more output capacity. As part of our vision we will be busy to complete the 400KV backbone for the whole of Oman. We have a vision to have one 400KV linking the North and South and the interior parts. We will have one strong grid and solid infrastructure appearing over the next few years. We want to support overall growth within the country as best we can.”

OETC was established on 1 May 2005 and it

SUPPLIER PROFILE

Project delivery capability is essential in order to turn the high demand growth risk into investment opportunities

BAHWAN ENGINEERING GROUP

Founded in 1977, Bahwan Engineering Group has emerged as one of the largest engineering construction & trading groups in Oman. Nearly four decades, the Engineering Group has been associated with nation-building projects in Oman and UAE. BEC, executes integrated multi-disciplinary construction projects involving Civil, Mechanical, Electrical, Instrumentation, Elevators and Escalators, Diesel Power Generation. It is also involved in trading in Electrical , Mechanical , Chemical products and Facilities Management Services.

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Energy management all the way www.siemens.om Siemens has a proven track record in project delivery in Oman. The company’s commitment to building a local framework through the region with branch offices and operational units helps to improve the competitiveness of the country and creates value for local businesses.

Backed by its global technology network, Siemens in Oman provides all necessary skills and expertise to fully manage even the most complex projects. Siemens has proven its reliability as a trusted partner that delivers only the highest quality over many decades.

From extra-high to low-voltage, the Siemens portfolio for efficient power transmission and distribution includes everything it takes to support the country’s energy infrastructure in keeping pace with the rapidly growing demand for electricity.

www.siemens.om

MIDDLE EAST

is responsible for the building and operating of the transmission network in Oman, and is the licensees under the authority of Government of Oman. It is also in charge of despatching and controlling the overall generation and output of electricity in the country.

Operations In January 2014 OETC took control of the transmission network in the south of Oman, which had previously been operated by a different system operator. As a result the firm had full control of the country’s electricity transmission and a significant platform to build on.

Eng Ali Al-Hadabi, CEO of Oman Electricity Transmission Company, said: “We are also responsible for the international connection to

SUPPLIER PROFILE

OETC connects a number of high profile corporate customers

SIEMENS

Siemens is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of gas and steam turbines for power generation, a major provider of power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry.

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OETC has full control of Oman’s electricity transmission

a number of GCC countries and its authorities, this is done through Abu Dhabi in the UAE. Meanwhile we have a number of high-profile corporate customers in Oman connected to the high voltage network; the major Omani airports, industrial customers such as steel and aluminium factories, and the Oman Petroleum Company to name a few.”

“Because we are experiencing a lot of growth in OETC and the country as a whole, we need to maintain the same sort of growth in the network to handle the load increase and ensure we all flourish.”

OETC has also made sure all IT systems have been upgraded to help drive continuous improvement and support the national controlling and communication link to the national network.

“Currently we have a load demand of around 5,000 MW and we expect that to be in the range of 16,000 in 2030 so investment is essential if we are to provide over three times the existing demand” – Dr Adil Al-Busaidi, Asset Management and Planning Manager at OETC.

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Hamed Engineering Services LLC Hamed Engineering Services LLC has a leading presence in Oman dating back to 1983. We pride ourselves of being 100% Omani Consultant Company recognized by many clients for delivering high quality engineering solutions and services for both the Power/Infrastructure sector as well as the Oil and Gas sector. We cover a variety of engineering services including: • Technical studies • Conceptual, Front End & Detailed Design • Owners Engineering services and site supervision We believe that our success and growth can be maintained only through establishing and maintaining long-term relationships with our clients, and delivering innovative solutions that serves their needs.

Tel +968 22086800 / Fax +968 2208 6951 W www.hesoman.com / W www.vecoman.com E hes.energy@hesoman.com P.O. Box: 86, Al Qurum, P.C.: 102, Sultanate of Oman

Designing, Tower testing & Manufacturing of Galvanized Lattice type steel structures for Overhead transmission Lines and Telecommunications Towers.

EPC construction of Overhead Transmission, Distribution, Substation & underground power cabling works.

T +971 4814 9555.

F +971 4885 7819. contact@gulfjyoti.com www.gulfjyoti.com

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MIDDLE EAST

Asset management Al-Hadabi and Al-Busaidi both stressed the need for new ways to strategically deliver projects, because despite the heavy investment throughout the group, if the assets are not managed correctly then it will not have the desired impact on operations.

Al-Hadabi said: “In the last two or three years we have established a strong asset management structure. We do depend on outsourcing a small amount for things like consultants who supervise our work and make sure we carry on looking after the projects that are coming our way.

“This new strategy will really help us to see the requirements of all departments and see the lifecycle of our assets. This relates back to our investment program where we are ensuring that there is a sufficient support network in place.

“We would also like to emphasise the value we place on our excellent staff and engineers.

We take them through rigorous and high-quality training which allows them to look after what we are targeting. We encourage all our engineers to go for extra qualifications and support them; a fulfilled worker is much better equipped to help us achieve our business objectives.”

More than 92 percent of the company’s employees are Omani nationals and most are trained in multiple disciplines. “We want this trend to continue because we believe in the young talent in this country, and hope they will want to work for an employer like OETC. We also want to limit

Eng Ali Al-Hadabi, CEO of Oman Electricity Transmission Company.

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“We are always benchmarking ourselves against the best transmission companies across the world and we try to be constantly challenging ourselves to be the best utilities firm we can be” – Eng Ali Al-Hadabi, CEO of Oman Electricity Transmission Company.

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Building a transmission network with high voltages of 400KV is a sizeable job

the amount of outsource activity to certain niche tasks that physically cannot be done in-house; everything else should be done in-house going forward. With this in mind, staff numbers are expected to increase in the coming years.” added Al-Hadabi. OETC has made a successful habit out of building fruitful partner relationships with local service providers and contractors too, and this has further helped maintenance and delivery.

The company management team sees the main challenge going forward as the ongoing efforts to improve the national grid infrastructure. Building a transmission network with high voltages of 400KV is a sizeable job, in terms of implementing new overhead

MIDDLE EAST

lines, underground cables and evacuating the power from the new generation stations.

While this is being carried out all network corridors need to remain available at all times as it is important OETC maintains a reliable service to the customer with no deviation in quality or availability.

Al-Hadabi concluded: “We need to execute all these new lines and substations with minimum to the end users, our valued customers, and this is something we are taking very seriously with the governmental authorities and that is the main challenge I can see, we need to tackle that to get the right corridors and build a service fit for the future.

“We are always benchmarking ourselves against the best transmission companies across the world and we try to be constantly challenging ourselves to be the best utilities firm we can be. When we do reports based on our three pillars of reliability, availability and quality we always find the results to be acceptable. But we must not be complacent and stand still.

“We have high standards and have put a big level of expectation of ourselves, and we challenge our employees to make sure we deliver on that expectation.”

With such commitment to its staff, coupled with significant investment plans, the Oman Electricity Transmission Company looks set to bring about further prosperity for itself and facilitate growth for the country’s economy.

Company Information INDUSTRY

Energy HEADQUARTERS

Sultanate of Oman FOUNDED

2005 EMPLOYEES

350 REVENUE

92 milliom OMR (2014) PRODUCTS/ SERVICES

Owner and operator of Oman’s main electricity transmission network

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Prommac Continues To Grow Its Reputation In Energy Written by Sheree Hanna Produced by: Anthony Munatswa

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P R O M M A C ( P T Y ) LT D

A South African provider of maintenance solutions is winning big deals from big players both at home and abroad with an aggressive growth strategy

M

aintenance and shutdown contractor Prommac has undergone something of a transformation in the past three years having grown from a R30 million turnover business in 2011 to R200 million in 2015.

Founded in 2005, the private South African company’s growth strategy has seen peak employee levels rise from 200 to in excess of 1,500 over the past three years fuelled not only by acquisition and expansion, but also the determination of its owner-manager team to be the very best in its field.

With an enviable safety record and a rubber stamp of approval from global clients such as Chevron and Sasol, Prommac boasts vast experience in the petrochemical, oil and gas, and Power sectors, and now has its eye firmly set on the mining industry as a prospective and lucrative market for its top-notch services.

Earlier this year Prommac acquired a Rustenburg mining company as part of its drive towards persuading the sector’s leaders that outsourcing maintenance is an efficient and productive step to take.

Mining for new business Prommac’s Chief Executive Officer, Jason English, said: “The oil and gas industry transitioned to outsourcers many years ago as they realised it was not only cost effective, but allowed them to concentrate on the core business of making petrol.

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October 2015

AFRICA

Prommac boasts vast experience in the petrochemical, oil and gas, and power sectors, and now has its eye firmly set on the mining industry

“We recently did a case study which showed a coal mine substantially increased its productivity and plant availability by outsourcing.

“At the start of the case study in 2012, productivity was at 28 percent and the mine was using 88 people to perform maintenance. After 2 years, a snap shot was taken and we were doing exactly the same job with 44 people and the plants availability was up to 78 percent.”

In short, Prommac offers complete solutions for plant maintenance, shutdown execution, commissioning and small project execution.

1,500 Number of staff employed by Prommac

Sweeping changes English, who has extensive experience in oil and gas, joined Prommac in 2012. Since his arrival, some sweeping changes have been made including new company branding and the appointment of several high profiled key individuals including an internationally w w w. p r o m m a c . c o m

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P R O M M A C ( P T Y ) LT D

Looking after its people is first and foremost

experienced shutdown specialist and a highly qualified and experienced Chief Operating Officer.

In 2013, the board was restructured and Prommac won its first major contract in South Africa. The following year the Prommac Electrical and Instrumentation division was established as a 51 percent black-owned business and this was swiftly followed with a welcome shareholding investment made

by CG Energy who is owned by the founders of South Africa’s leading community-based investment house, Royal Bafokeng Holdings.

Prommac’s reputation further soared in 2014

“The deal with Chevron was a significant milestone for us as it is one of the major players in the world and thus quite an achievement” – Jason English, CEO

AFRICA

when it secured its first major international deal with global player Chevron. “The deal with Chevron was a significant milestone for us as it is one of the major players in the world and thus quite an achievement,” said English.

Success fuelled success with Johannesburgbased, integrated energy and chemical company, Sasol, awarding Prommac a five-year contract.

Thus the maintenance and shut down specialist continued on its expansion trail with the acquisition of a manpower resources division and enabled its overseas growth by establishing operations in Abu Dhabi, in the Middle East.

We are big enough to deliver and small

Putting people first Looking after its people first and foremost is evident in the time and investment Prommac has made both in its training schemes and its outstanding safety record.

“We are currently investing in building new head offices in South Africa where we will have our own training unit,” explained English. “One of the most significant things we have done is invest in stateof-the-art, online training materials, which are way ahead of what most other companies have and will assist us in creating a more skilled workforce.”

On the safety side, Prommac has in excess of 10 million lost time-free work hours and has been recognised by NOSA, a global leader in health, safety, environmental and quality risk management, as the second best performing contractor in

enough to care

Prommac has reached 95 percent safety for three consecutive years

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P R O M M A C ( P T Y ) LT D

Prommac has been recognised by NOSA as the second best performing contractor in the construction sector

Mpumalanga in the construction sector.

“We have received 3 consecutive special NOSCAR ratings for reaching 95 percent in our safety audits for the past successive three years,” said English.

Prommac is a Black Economic Empowerment Employer

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Going nuclear Attaining such a strong safety record has benchmarked Prommac as a contractor able to service the nuclear power industry after it was selected to carry out valve maintenance works for one of two nuclear power stations in South Africa.

“Working in the nuclear arena is really the pinnacle of the power space in terms of safety and quality regulation,” said English. “We have an outstanding safety record. As a private entity we are effective at keeping our overheads to a minimum. Our slogan is ‘we are big enough to deliver and small enough to care’”.

AFRICA

Prommac is a Black Economic Empowerment employer and has established education and key persons’ trusts to support its efforts and it also supports local communities through a variety of ways including using suppliers local to its operations.

“We are involved in various sponsorships and are currently backing a young female athlete who has broken South African records and is set to run in the Olympics. We help to raise funds and have set up employee schemes where our workers get benefits from the profits of the business,” he said.

Shoulder to the wheel English believes the company’s success has also been inspired by its owner-manager shareholders, who not only run the show but continue to work alongside employees.

“We believe in giving clients access to us 365 days of the year. If you look at the back of our business cards the number given is the CEOs, which just goes to show to what extent we will go to resolve clients’ problems,” said English.

Prommac is most certainly primed for a prosperous and rosy future as it aims to take its growth strategy further on in the years to come.

English concluded: “We are a technically-strong business with a client centric approach along with robust planning and development systems in place. We have never lost a term contract and that must say something about the overall culture and performance of our business.”

Company Information INDUSTRY

Energy HEADQUARTERS

Johannesburg, SA FOUNDED

2005 EMPLOYEES

1,500 REVENUE

R200million PRODUCTS/ SERVICES

Plant maintenance, shutdown execution, commissioning, small project execution

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SEA

ANZ 73

SEANZ

S

EANZ develops industry capability and capacity through advocacy, policy, industry standards, events, connecting industry professionals and collaborating with electricity industry stakeholders.

SEANZ is an independent entity representing organisations from SME’s to global corporations, from those in the lab, to those in the supply chain from manufacturers to system integrators to finance organisations as well as some utilities and system operators, who understand and have embraced the distributed generation (DG) business 74 October 2015

model - represented by solar PV, wind turbines and mini hydro.

SEANZ represents the interests of all members in the industry and works collaboratively with many organisations to achieve positive and sustainable outcomes.

Mission Statement • Drive the growth of onsite renewable electricity generation in New Zealand by developing capacity and capability of the industry • Keep abreast with the technological change in the industry to include smart grid and associated

AUSTRALIA

Brendan Winitana, Chairman

Rebecca George, Administrator/Board Secretary

technology and services

On the changes happening As is the case around the world, The NZ Scenario consumers are moving to solar Starting from a low base, the because it offers specific values that number of solar power systems many traditional power companies across the country has more than cannot and that will continue unless tripled in the last 18 months, a 220 those power companies respond to percent increase. consumer demand.

This growth has is creating Regulatory and legislative reviews challenges for the electricity are underway in New Zealand of industry. SEANZ is committed to the rules that govern distributed working collaboratively across generation, pricing, and the role of the industry to ensure that a 21st distribution companies. SEANZ is Century grid is affordable, fit for actively involved in this conversation purpose, and benefits consumers and submits its position on all of and all those involved in the industry. these reviews.

Many fear that consumers with w w w. s e a n z . o r g . n z

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solar and batteries will defect from the grid, however at SEANZ, we are advocate for a market design which accepts consumers have the right to interconnect and operate smallscale generation-plus-batteries under a fair, transparent charging regime.

In particular this relates to the ability to sell surplus distributed generation energy locally and not be forced to sell to a wholesale market.

There are benefits to keeping solar customers grid-connected 76 October 2015

but the network and the services it offers will have to change. At SEANZ we believe that pricing structures will have to change to reflect the changing nature of the distribution network but this can be a win-win for consumers and the companies that connect us to the grid. But these companies will need to change their business models rather than just increase prices if they are to remain competitive and prevent consumers with their new found storage ability defecting from the grid.

SECTOR

As self-managing micro grids become possible, distributors could re-enter the electricity market at a local level, providing them a replacement revenue stream.

Distributed generation and storage provides an opportunity to strengthen the electricity network and provide a flexible yet resilient grid. Fair pricing can recognise and reflect both the costs of grid upkeep and the value of distributed generation.

SEANZ SolarSMART is the Solar

PV and Storage Conference in New Zealand The SEANZ SolarSMART Conference is scheduled for November 13-14t at the Novatel in Rotorua. These two informationand event-packed days are not to be missed!

SEANZ SolarSMART is about building a smart industry – using smart technology, smart strategies and smart planning for smarter and better outcomes for you - think smart inverters, smart data, smart w w w. s e a n z . o r g . n z

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SEANZ

access to data, data IP, energy services, smart ways to assist industry, empowering your business and clients.

The electricity landscape is changing more than ever. SEANZ members have significantly contributed to that change and are also impacted by it. Consumer led technologies are changing business models for all players where nobody is immune. Record growth is shaking up the market and more parties are taking note – utilities, 78 October 2015

regulators, the finance industry and others looking to participate and respond.

Regulatory reform over the forthcoming years will impact the industry and your business more than ever before. Your voice through SEANZ, is absolutely critical in this discussion.

Join us and participate in the industry forum that is SEANZ SolarSMART. SEANZ SolarSMART includes the Suppliers Expo for manufacturers,

AUSTRALIA

importers and wholesalers to allow installers and other parties understand new technologies and offerings.

SEANZ SolarSMART features five Conference Streams with keynotes and local speakers on: • The Industry Today – the SEANZ view, the global view, the government view, the utilities view and the non-solar PV believers view.

• Keynotes include an internationally renowned visionary leader in the solar industry and a luminary leader and founder of a leading manufacturer • Changes 1 – the regulatory situation in NZ, impacts, the outcomes and results of changes in other countries, the range of possible scenarios • Changes 2 – what Changes 1 means for utilities and you, the SEANZ plan • Personal and Business Development – hear from leaders about how you can create more success for your business, value selling and marketing in the industry, exporting potential and finding your niche for your business • Developments that are a must know about – the new Stored Energy Association, new and upcoming industry standards workshop for SSR’s and batteries Plus industry events and network functions such as: • The Industry Gala Dinner with a special guest speaker • The Industry Awards – celebrating the successes in the industry

Company Information • Personal and Business Development – hear from leaders about how you can create more success for your business, value selling and marketing in the industry, exporting potential and finding your niche for your business • Developments that are a must know about – the new Stored Energy Association, new and upcoming industry standards workshop for SSR’s and batteries

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Ergon E Regional Queenslan

Executive General Manager Peter Billing initiatives on the hori Written by: Robert Spence

Energy nd’s energy supplier

g discusses innovation and reveals upcoming izon for Queensland.

Produced by: Glen White 81

C O M PA N Y N A M E

E

rgon 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.

Ian McLeod, CEO 82

October 2015

SECTOR

Anatomy of Ergon Energy The Queensland company is comprised of two sides: one that builds and maintains the electricity distribution network, and one that sells electricity to residential and business customers.

Ergon Retail is the custopmer facing part 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

“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.”

–Peter Billing, Executive General Manager, customer service.

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Nexans Olex is Australia's trusted electricity industry partner; providing electrical cable products and solutions for over 75 years. From project design through to decommissioning, our local technical design and support team are there when you need us to keep your assets running and to let you focus on your business.

Our comprehesive product range includes solutions for:

Head Office 207 Sunshine Road Tottenham Victoria 3012 Australia Phone: 1300 CABLES

www.olex.com.au

SUPPLIER PROFILE

Employees: 350 Australia, over 20000 Worldwide Established: 1940 (Australia) Industry: Power Transmission and Distribution, Transport Networks and Infrastructure, Resources (mining, oil and gas, renewables), Building Construction Products and Services: We are manufacturers and suppliers of a full range of electrical and data cables and electrical system solutions.

Our products have been designed with local industry by our Australian technical team and best in class global research centres.

Ongoing Projects: APLNG Gas Field Electrification and Wells Online, Ichthys Gas Field Downstream Processing Facilities, Ergon Energy Power Utility Network, Key to success: Our approach is to partner with our customers. We are involved in your success and provide solutions which help you achieve your goals. This is backed by a commitment to best quality manufactured products designed for your specific application and operating environment.

Future developments: LoSAG™ Covered Conductor is an exciting new product for power distribution networks which greatly reduces the risk of bush fires while also remaining compatible with existing systems for the lowest cost SWER replacement line option.

Company Mission: Nexans Olex aspires to be the first choice supplier of cable solutions in Australia. With a rich history at our core, we aim to draw on our global parentage to lead the electrical industry through technical innovation, quality and industry stewardship.

Management: • Tony Dunstan, Managing Director • Greg Stack, General Manager Sales • Tony Jones, National Manager Utilities & Contestables Website: www.olex.com.au

ERGON ENERGY

AUSTRALIA

government rebates.

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 recognised back in 2007 that the price of energy would become an issue and that we would need to adapt.”

Peter Billing, Executive General Manager, customer service. w w w. e r g o n . c o m . a u

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ADVANCED DIESEL FUEL WITH SOPHISTICATED ENGINE CLEANING TECHNOLOGY Caltex Active TecD is a high-performance diesel fuel specifically designed to clean-up performance degrading deposits from heavy-duty diesel-fuelled engines, such as buses, trucks, mining equipment and power generators, and keep them clean.

Caltex Active TecD works to help improve injector cleanliness, and consequently enhance fuel flow through the injectors and restore engine power.

ERGON ENERGY

AUSTRALIA

“We recognized back in 2007 that the price of 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.

“We may not be Apple or Google but we’re striving for innovation.”

To ensure creativity is alive and well within the organization, Ergon Energy strives to cultivate an atmosphere that empowers people to speak up and bring their ideas to the table.

“We encourage everyone in our organization from the top to the bottom to read and learn new things happening in the world. We encourage them to think of new ways of doing things and ways to apply those innovative ideas to our type

SUPPLIER PROFILE

ACTIVE TECD: THE FUEL OF THE FUTURE

Internal diesel injector deposits are of increasing concern in modern high pressure common rail fuel injection systems, which are manufactured to meet precise tolerances and operate with tiny clearances (down to 2-6 micron). These deposits can affect the response of the fuel injector, causing sticking of moving internal parts and loss of control of injection event timing, as well as the quantity of fuel delivered.

By cleaning up performance degrading deposits from an engine – and keeping it clean – Caltex Active TecD works to restore power, improve injector cleanliness and ensure better fuel flow through the injectors.

It is formulated with a high treat rate of Caltex’s advanced, proprietary additive system which also inhibits the formation of rust and corrosion.

The anti-foaming agent in Active TecD reduces foaming to zero in industry standard tests, which in practice lessens both splashback and odours commonly associated with regular diesel, allowing for faster and

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EDITORIAL

C

altex and Ergon Energy’s Isolated Systems have formed an interdependent relationship based on collaboration, trust and shared values. Caltex’s central role is to supply diesel

fuel and lubricants to all of Ergon Energy’s 33 remote power stations, which provide dependable and stable electricity to remote parts of Queensland, including the Torres Strait. The relationship

between the two organisations is critical to ensure consistency of the power supply and to make sure that fuel is transported and delivered safely and effectively with minimal risk to the environment. Caltex has proven to be a trusted supplier and a key partner in Ergon operations.

In one of many dialogues between both companies to review operational efficiencies and improvement initiatives, Caltex proposed an opportunity for Ergon to reduce fuel consumption.

ActiveTecD fuel, one of three Caltex value-added fuel products, was suggested as being a good fit with existing infrastructure and logistics.

The fuel was claimed to offer a potential 2 per cent improvement in thermal efficiency (reduced consumption), by removing deposits in the fuel system and preventing further build-up. In prolonged operation this should help restore and maintain ‘new engine’ like performance for longer.

Caltex was able to demonstrate

the claimed effectiveness of ActiveTecD in the transport market, which established a performance test in the power station at Boulia, Queensland. Boulia was proposed to demonstrate the effectiveness of the fuel as it had a good mix of old and new engines, giving a credible trial at a load that was typical of the rest of Ergon’s fleet. Based on before and after thermal efficiency measurements, the data collected showed average fuel efficiency to be slightly better than the purported figure. This level of performance was sustained after many months of successful operation.

Caltex’s support has been with Ergon all the way, and its strong technical capabilities and experience is something on which Ergon Energy places a high value.

From a supplier management perspective, the Caltex relationship sets the benchmark against which all other Isolated System suppliers are compared.

“Work Safe, Home Safe”.

Established in 2007, Geiger Group is an infrastructure business providing electrical, civil, telecommunications and ancillary works in Queensland and Victoria from our Toowoomba, Brisbane and Melbourne offices, with capability nationally.

Manage and deliver: • High and low voltage distribution works including overhead and underground • Underground reticulation • Commercial and industrial electrical works including new builds and refurbishments • Earthworks, excavation and civil works including remediation and new works • Communication and data installation • Project management works Geiger Group has a proven track record of delivery in our key markets which include mining, oil and gas, civil, commercial and industrial construction, rail and energy sectors.

The Geiger Group vision for all staff is ‘Work Safe, Home Safe’.

Queensland: 5 Tait Street, Toowoomba Qld 4350 | PO Box 7009 Toowoomba South Qld 4350 | 07 4614 4300 Brisbane: PO Box 2017 Graceville Qld 4075 Victoria: 7 Kearney Street, Bayswater VIC 3153 | PO Box 888, Lilydale VIC 3140 | 03 9720 3289 info@geigergroup.com.au | geigergroup.com.au

ERGON ENERGY

SUPPLIER PROFILE

AUSTRALIA

GEIGER GROUP

Employees: 150 Established: 2007 in Toowoomba, QLD Industry: Geiger Group provides Electrical, Civil, Telecommunications and Ancillary works with works being completed across Australia for some of Australia’s leading electrical, gas and civil suppliers.

Services: Works from high and low voltage and underground works, earth works and civil works to data installation. Project management and technical advice.

Ongoing Projects: Geiger Group are industry leaders in contracting services for overhead and underground electrical distribution network assets. Our key markets are Queensland and Victoria with National capabilities Website: www.geigergroup.com.au

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We spend all our energy forging Greg Sewell Forgings are honoured to be included as part of the nuts and bolts make-up behind Ergon Energy’s streamlined supply chain and are proud of the strong and lasting relationship that we have forged together.

For over 30 years now, Greg Sewell Forgings has been manufacturing and supplying quality steel forged & fabricated products to the Australasian market.

For all of your fastener and line hardware accessory requirements or to find out more about Greg Sewell Forgings, please contact our National Sales Manager – Mr Robert Borg on (02) 8814 5990 or email: rborg@gsforgings.com

‘Experience in forging’ www.gsforgings.com

ERGON ENERGY of business,” said Billing.

“When everyone is bringing something to the table, one idea might spur another. We encourage that.”

Putting innovation into action For Ergon Energy, company-

SUPPLIER PROFILE

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wide collaboration is a key component behind one strategic focus: exploring new possibilities for collecting, consuming and conserving energy.

One example of this is the utilization of batteries.

“We’re seeing that batteries are

GREG SEWELL FORGINGS

Greg Sewell Forgings Pty Ltd is a major manufacturer and supplier of specialty, high and low volume components with a diverse range of capabilities. We have produced thousands of different components from low grade carbon through to high end stainless steel to meet the high requirements from the Power Industry, Mining, Rail, Agricultural, Automotive and the Fastener industry. Our flexibility allows us to offer single run low-volume to high-volume production at competitive prices.

A cornerstone of our business practice is to build mutually beneficial partnerships with our customers and suppliers, and to continually seek improvements for us and our customers through innovation and excellence. To this end Greg Sewell Forgings Pty Ltd has adopted the AS/NZS ISO 9001:2008 Quality Management System.

Website: www.gsforgings.com

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Driving Fleet Innovation

SG Fleet’s industry leadership and strong business performance is built on the company’s major competitive assets: exceptional relationships with customers through outstanding service quality, the ability to develop our offering through innovation, and the skills and experience of our people.

Whether you run a fleet of 5 or 10,000 vehicles, sgfleet is the answer.

Corporate fleets Government fleets Small to medium enterprise Salary packaging Passenger and light commercials Heavy commercials Mobile equipment Fleet management sgfleet will tailor the right package for you with flexible finance arrangements.

Visit our website: www.sgfleet.com

Call us on: 1300 138 235

SUPPLIER PROFILE

SG FLEET GROUP LIMITED SG Fleet Group Limited is one of Australia’s leading specialist providers of fleet management, vehicle leasing and salary packaging services. SG Fleet has a presence across Australia, as well as in the United Kingdom and New Zealand. The company employs over 400 staff and has more than 90,000 vehicles under management. SG Fleet listed on the Australian Securities Exchange in March 2014.

SG Fleet offers an extensive range of fleet management, leasing and salary packaging solutions to corporate and government customers, as well as heavy commercial fleet management and leasing services. Salary packaging solutions provided by the company include novated leases and associated vehicle management services for customers’ employees, as well as a range of other employee benefits.

The company has a unique position in the marketplace, built on the experience, product expertise and commitment of its team. SG Fleet prides itself on the strength of its relationships with blue chip corporate and government customers. These relationships have been built on a customer-centric approach to service delivery and the development of bespoke but scalable solutions to meet the needs of individual customers.

Constant innovation allows SG Fleet to provide its customers with an industry-leading proprietary technology platform that enables highly advanced fleet management capabilities. The company continually upgrades its solutions and introduces additional products and services to its range.

Management: • Robbie Blau, Chief Executive Officer • Kevin Wundram, Chief Financial Officer • Andy Mulcaster, Managing Director, Australia

THE TRANSFORMER PEOPLE

Power Transformers (≤550MVA) Distribution Transformers (≤5,000kVA)

Special Transformers

Compact MV Substations

Special Applications

Monitoring and Control Solutions

For more information about our products and services, please visit www.wtc.com.au

BUILT SMART

FOR LIFE

ERGON ENERGY part of our future,” said Billing when explaining the company’s ongoing partnership with Mitsubishi.

In 2012, the company purchased six Mitsubishi electric vehicles (EVs) and ran trials in Townsville over an 18-month period to understand customer acceptance of EVs and the eco system that supports them.

“We were able to examine how these vehicles were used, including how and when they charge, in order to better understand their impact on our network,” Billing said.

Ergon Energy recently secured another deal with Mitsubishi to integrate eight Mitsubishi Outlander

SUPPLIER PROFILE

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plug-in hybrid electric vehicles (PHEVs) into their fleet, as well as finalizing a lease offer to employees that could see up to an additional 100 EVs provided for use later in the year.

“From an electricity perspective, the use of EVs is a natural synergy,” Billing said. “It’s the beginning of a new role of technology in the energy sector: Why wouldn’t we be on the ground floor running?”

While the partnership with Mitsubishi is a great starting point, it’s only the tip of the iceberg for Ergon Energy.

In July, Ergon Energy announced it was working with the government

WILSON TRANSFORMER COMPANY

Established in 1933 with a proud history, Wilson Transformer Company is a leading specialist in the delivery of transformer solutions. From our manufacturing base in Australia, we deliver solutions to a wide variety of industries and customers around the world including electricity generators, transmission and distribution organisations as well as variety of heavy and light industrial users.

Within our product range, our state of the art facilities are equal to the best the world has to offer. By using the latest design software, analytics and manufacturing technology, we engineer and manufacture our products in clean work environments incorporating strict quality control measures. We also have a dedicated team of people for field operations and support services.

Through our world-class capabilities, specialist knowledge and proven reliability, our customers can be assured of a quality outcome. We are building smart for life solutions and this means performance you can

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PERFORMANCE SOLUTIONS FOR ELECTRICITY GAS WATER UASG is Australia’s leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution.

Our speciality brands, Skilltech and UAM, partner with customers to offer safe, compliant and reliable services. This commitment is evidenced by our 95% client renewal rate and outstanding safety record.

Our essential services support Ergon Energy every day by: ●

Inspecting and maintaining 250,000 poles and 50,000+ street lights a year in urban and remote areas

●

Conducting an Annual Road Patrol Program of 30,000+ street lights

●

Supplying quality field metering services, including reading, special reads, disconnections and reconnections to 2.4+ million accounts each year

Contact us today: 1300 377 170 enquiries@uasg.com.au www.uasg.com.au

ERGON ENERGY

AUSTRALIA

SUPPLIER PROFILE UASG provides performance solutions for electricity, gas and water UASG networks. With 1,500+ employees, 900+ vehicles and more than 24 years experience, we deliver quality specialist services covering: • Meter reading, installation and Advanced Metering Infrastructure (AMI) • Energy and water efficiencies • Asset inspection/monitoring • Data capture • Electrical overhead construction/ maintenance • Pole reinforcement services • Vegetation management • Lighting efficiency programs • LIDAR • Survey, design and drafting Website: enquiries@uasg.com.au

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Brisbane | Sydney | Melbourne | Adeleide | Perth

Elevated Work Platform Specialists Latest in EWP Technology Reliable Equipment From 12m to 103m Back Up Service Australia Wide Our Fleet Includes Live Line & Under Bridge Inspection Units

P: 1300 LINCON

E: hire@lincon.com.au

www.lincon.com.au

Tel: +61 7 4061 6426 Transportation and Logistics, container movement, general freight deliveries with the inclusion of crane trucks and truck mounted forklifts and oversize loads.

Meeting Australian Safety Standards, Our Trucks are equipped with Tracking Systems and Cameras.

www.innisfailcarrying.com.au

ERGON ENERGY to create an EV highway with Australia’s first solar-powered fastcharging station.

“This is an opportunity to create a need in the market,” said Billing. “If you wait for everyone to get electric vehicles, it won’t work—it will be too late. We needed to be similar in our thinking of leading by example and getting the ball rolling.”

Billing also revealed the company

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is about to purchase three Battery Packs for their hydraulic elevated work platform field trucks. “For us, the payback is reducing our diesel consumption while also eliminating the noise these machines make.”

Not stopping there, Ergon Energy is also seeking to utilize alternative energy solutions in other areas of its businesses.

“We’re actually putting batteries on

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The world’s first shear-bolt action mid-span splice

MTRS from Sicame Australia - the new mechanical tension repair splice has been developed to overcome many of the issues effecting poor jointing of bare overhead conductors with either compression, helical or spring type splices.

High-torque, shear-head bolts apply pressure points on the conductor via an internal pressure plate in a unique wave-like pattern along its length, thus ensuring superior and reliable mechanical and electrical performance.

sales@sicame.com.au | www.sicame.com.au

SICAME AUSTRALIA HQ

SICAME AUSTRALIA NSW

23-25 Union Circuit Yatala, QLD, Australia (+61) 7 3807 7022 (+61) 7 3807 7522

4/36 Holbeche Road Arndell Park, NSW, Australia (+61) 2 9621 3155 (+61) 2 9622 7120

STIRLING HELICOPTERS Central Queenslands leading helicopter company operating a broad range of helicopter fleet and offering a vast range of professional helicopter services with very experienced and professional pilots.

We offer extensive helicopter charter services to the following industries: • Mining, Gas and Power • Corporate and Tourism • Defence and Government • Agriculture

EXPERIENCED PILOTS AND AN IMPECCABLY MAINTAINED FLEET

CONTACT:

Servicing Central Queensland and South West Queensland Email: admin@stirlinghelicopters.com.au Phone: 07 4937 1180 Web: www.stirlinghelicopters.com.au Mobile: 0429 371 180

ERGON ENERGY the end of remote and rural sections of the electricity network and using them as support in times of high load,” said Billing. “The benefits are immense because they don’t need to be augmented and they store energy in the off-peak times and then feed back into the network during highpeak times.”

According to Billing, the company is in the process of working with

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some developers to implement batteries in subdivisions as well.

“The outcome could potentially build a type of distributed generation network in a housing subdivision, which would provide an array of benefits to customers.”

Ergon Energy is also building its retail business to reflect more opportunities for solar technology.

In August, Ergon Energy forged

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ERGON ENERGY an alliance with Californian electricity storage developer Sunverge Energy to launch a limited commercial rollout of its power systems in Queensland homes.

The partnership involves installing SunPower solar panels and Sunverge energy storage systems in 33 homes in Toowoomba, Townsville and Cannonvale in a program that will receive $400,000 of funding by the Australian Renewable Energy Agency.

The power system is comprised

of back-up power, a six-kilowatt inverter with 11.6 kilowatt-hours of energy and communications, and control capability that allows the company to collectively manage the system to increase the efficiency of power supply on its grid.

“This partnership will help us better understand the technology and where we stand in terms of our network. It’s helping us model what our future network could look like,” Billing explained.

Maintaining today’s assets, creating tomorrow’s power solutions UGL provides whole of life asset solutions for large and complex power systems across Australia, New Zealand and Asia, from electrical substations and transmission lines to advanced power stations.

Throughout Queensland, UGL has been a proud supporter of Ergon Energy for 8 years working together to deliver 62 substations and associated infrastructure to provide electricity to 734,000 customers in homes and businesses across regional Queensland.

The key elements to UGL’s success are our close working partnerships and decades of experience in delivering engineering construction and O&M solutions to our clients.

www.ugllimited.com

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Thinking forward A major initiative Ergon Energy has undertaken is in the form of disaster relief. The company is currently running a series of scenarios to better understand the network in the event of natural disasters, as well as learning how it could improve.

“Right now we’re doing two things, the first of which is running a series of exercises to test the readiness of our network and whether we need to reconfigure it or change critical aspects to make it more resilient in the future,” said Billing.

“The second thing is technology. We’re looking to interact with a number of technologies such as crowdsourcing and social media to find out if these are applicable for us.”

The company is also holding workshops to better understand response perspectives from people and companies with actual experience dealing with these disasters.

“Input from Rod West from Entergy in the United States has been paramount for us,” Billing.

“His experience from Katrina and lessons learned were really insightful and important for us to consider with our network.”

“All of these workshops, exercises and reports are better preparing us for the future,” said Billing.

“We’re thinking ahead and about where we want to be in 2020.”

With Ergon Energy at the helm, the people of Queensland are in good hands—today and in the future.

Company Information INDUSTRY

Utilities; government agency HEADQUARTERS

420 Flinders St Townsville, Queensland, Australia FOUNDED

1999 EMPLOYEES

4,500 PRODUCTS/ SERVICES

Utilities; government agency

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ERGON ENERGY EXECUTIVE SPOTLIGHT

109

CH T OE M PA W HNOY’ SN W AM HE O OF ERGON ENERGY Australia and is Chairman of Ergon Energy Queensland Pty Ltd, SPARQ Solutions Pty Ltd and Ergon Energy Telecommunications Pty Ltd.

IAN MCLEOD

Chief Executive Officer

Ian McLeod is responsible for the business’ overall direction and, ultimately, for meeting the service delivery expectations and requirements of Ergon Energy’s customers, the community and regulators, as well as the business and financial objectives of shareholders. Ian brings extensive electricity industry experience to Ergon Energy; experience gained through management roles in the private contracting industry, in Powercor Australia and the State Electricity Commission of Victoria and Ergon Energy. Ian is a director of Energy Supply Association of 110

M cotnotbh e2r 021041 5 O

DAVIDEDMUNDS

Executive General Manager, Network Optimization

David Edmunds is responsible for the safe, efficient and effective utilization of Ergon Energy’s electricity distribution and associated communications networks and, where necessary, the delivery of new major infrastructure projects or other non-traditional solutions. He brings experience in both the corporate and public sector, to the executive including executive management, engineering, operations, and contracting, as well as proven leadership capabilities.

E X E C U T I V E S P OSTELCI G TO HR T

David has held senior roles in the electricity and gas industries of New Zealand, as well as in local government.

involved in the deregulation of the electricity industry in South Australia in the 1990s. He is on the board of Energy Skills Queensland.

PETER BILLING MIKE HUTCHENS

Executive General Manager, Customer Service

Chief Financial Officer, Finance and Corporate Services

Peter Billing is responsible for the operational effectiveness of the distribution business and for the safe, efficient operation and maintenance of Ergon Energy’s network. He is also responsible for supply to Ergon’s isolated communities and the commercial delivery of modular infrastructure and generation solutions. He brings a wealth of industry, leadership and change management experience to the executive, from trade roles to management. Peter was directly

Mike Hutchens is responsible for managing the financial and commercial aspects of Ergon Energy’s business, including strategic procurements, as well as the business’ legal counsel and risk and assurance program. Mike has significant accomplishments in financial and general management and has worked for a diverse range of businesses, including publicly listed multinational corporations, predominantly in the mining industry, as well as large professional services firms.

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Tag Oil

Acquiring success

With an established presence throughout New Zealand, TA growth. TAG Oil CEO Toby Pierce discusses how the comp through smart operations and strategic acquisitions.

Written by: Robert Spence Produced by: Vince Kielty

AG Oil is poised for pany plans to do so

Photo credits: Rob Tucker and Robert Earnest 113

C O M PA N Y N A M E

V

ancouver-based TAG Oil continues to thrive in New Zealand as a major gas and oil operator. With a strong production foundation and cashpositive assets, the company has positioned itself—financially and operationally—to deliver shareholder value despite the tough market conditions of the sector.

114 October 2015

With an established presence in New Zealand, TAG Oil is primed to continue its growth trend and begin exploring new possibilities in other territories.

Poised for growth The company’s success is clearly defined through its portfolio of assets in the region.

SECTOR

TAG owns 16 exploration and production permits in the Taranaki Basin, currently operating 10 of those, including its 40 percent interest in shallow water offshore Taranaki, and interests in the East Coast and Canterbury Basins.

“TAG’s East Coast prospects are in the early exploration stages, with vast potential once oil prices recover and

it makes sense to continue there,” said Toby Pierce, chief executive officer and director of TAG Oil. Undergoing more immediate activity is the company’s producing acreage in the main Taranaki production fairway. Assets include the 100 per cent-owned Cheal and Sidewinder oil and gas fields in the onshore Taranaki Basin, the Cardiff w w w. t a g o i l . c o m

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www.ajg.com.au

“Founded in 1927, Arthur J. Gallagher is a global leader in insurance broking and risk management services, offering specialist expertise in the oil and gas sector both for Operators and Contractors alike.�

Specialist Insurance Brokers for the Oil and Gas Industry

Ryan Mansom National Practice Leader Australia / New Zealand

+61 417 348 091 ryan_mansom@ajg.com

TA G O I L

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Deep gas discovery, and the Kaheru Offshore JV. Earlier this year, TAG underwent an extensive geotechnical and engineering review over the Taranaki development and exploration acreage to review the next round of drilling on the Company’s operated Cheal and Sidewinder Exploration and Development acreage.

“We’re still in the primary phase of production in Cheal,“ said Pierce, “despite producing a net daily average of 1,689 barrels of oil equivalent—73 per cent oil—this last quarter. We’re still finding new pockets of oil and gas, and there are many different aspects to implement, from optimizing recovery to infill drilling along known trends, and exploring through multiple producing formations.

There are opportunities for oil there and potential upside.”

SUPPLIER PROFILE

Alex Guidi Founder and Chairman

ARTHUR J. GALLAGHER (AJG)

Arthur J. Gallagher (AJG) is one of the world’s largest insurance brokers. Founded in the United States in 1927, it now employs over 23,000 people and is listed on the New York Stock Exchange. Globally, our insurance broking operation has a presence in over 140 countries.

In Australia and New Zealand, AJG has specialists in the Oil and Gas industry based in Perth providing a high level of expertise in this speciality field. Clients benefit from our ability to draw on international centres of excellence in London, Tokyo, Houston, Calgary and Singapore to access markets and enable us to meet the full range of client needs. Through our global reach and technical specialisation, our specialist team have access to bespoke and exclusive insurance solutions to assist clients. w w w. t a g o i l . c o m

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The original Sidewinder gas and oil discovery well drilled in the Taranaki Basin, targeting the Miocene-aged, Mt. Messenger formation. The well is located adjacent to the 60-million barrel Ngatoro/ Kaimiro oil field.

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According to Pierce, a particularly prospective project is Cardiff—a deeper gas exploitation with potential to be a very large deposit. “It will likely take some time to approach while we’re being conservative with cash flow, but we could possibly consider bringing in a partner if the conditions were right,” he said.

Along with strong assets, TAG owns and operates a modern production infrastructure and associated pipeline network, linking the gas it produces to the main high capacity pipeline, ensuring direct access to thriving markets in the Taranaki region.

In what other ways can TAG Oil grow? “We have nice footprint in New Zealand, but it’s a relatively small place and we’d like to expand,” said Pierce.

And in a market plagued by high production costs coupled with low commodity prices, TAG Oil is well positioned to take advantage.

If the deal is right Unlike most junior oil and gas companies at the moment, TAG’s model for growth isn’t all through development, but rather through acquisitions as well.

Toby Pierce, Chief Executive Officer & Director

Max Murray, New Zealand Country Manager

“The benefit of growing through acquisitions is a larger and more diverse portfolio. It also provides more access to financing, giving us a wider range of deals to look at.” – CEO Toby Pierce w w w. t a g o i l . c o m

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Working in partnership with our customers providing safe, efficient and cost effective crane and transport solutions Ian Roebuck Crane Hire Limited are proud to be associated with Tag Oil and Webster Drilling, supplying their crane & trucking requirements for the Drilling Programme throughout New Zealand.

24 HOURS 7 DAYS Office: (06) 758 7259 Fax: (06) 758 1827 105 Corbett Road, R.D. 3, Bell Block, New Plymouth 4312

0800 117 259

www.ianroebuckcranehire.co.nz

YOUR PARTNER FOR THE FUTURE For over 35 years, the Tasman group have been a leading provider of equipment and services to the oshore, onshore and geothermal drilling markets.

Tasman Australia 27 Jackson Street Bassendean WA 6054 Ph: +61 8 9379 2100 infoau@tasmanoiltools.com

Tasman New Zealand 13 De Havilland Drive West Bell Block, New Plymouth 4312 Ph: +64 6 755 0443 infonz@tasmanoiltools.com

Tasman United Arab Emirates PO Box 262559 Jebel Ali Free Zone, Dubai Ph: +971 4 881 0705 infouae@tasmanoiltools.com

www.tasmanoiltools.com

TA G O I L According to Pierce, at today’s oil price levels it can be a more sensible business decision to buy companies or substantial shares in companies, which can be cheaper than developing a new project.

“The way we look at it is with a larger production base, you’ll be self-sustaining cash flow-wise. You reduce your overall G&A; the team employs more individuals, and if you have a larger production base, you can carry a larger team. It gives you benefits and expertise.”

Pierce added, “The other benefit of growing through acquisitions is building a larger and more diverse

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portfolio. It also provides more access to financing, giving us a wider range of deals to look at.”

TAG maintains a balanced approach to its portfolio of oil and gas assets, with conventional production as its core focus.

However, the company does consider opportunities wherever they may lie. “If the upside makes sense for us, it’s something we’ll consider,” said Pierce.

According to Pierce, the company’s competitive edge is in its clean balance sheet. “We have no debt, solid cash, and are producing assets with a skilled workforce.

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TA G O I L

TAG Oil tanks at its Sidewinder production facility in the Taranaki Basin

We’re active, we are aggressive, and in harmony,” said Pierce, “and who we’re looking at a number of things are self-starters. We’re a relatively at the moment.” flat organization, so we need a highly competent, seasoned team Right people in place with a who can keep us nimble. We’re also system that works a diverse, international group.”

Looking behind the scenes, one Another major component to TAG key to TAG’s success has been its Oil is safety. With the right team in workforce. place, the company is committed “We seek the very best skillsets to providing the safest working when recruiting new employees. We conditions along with the highest want people who can work together standard of training.

122 October 2015

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“New Zealand has good programs in place for safety but we take it a step further with our safety culture,” said Pierce. “We’re very good on that end and we’re always working to improve. It’s our number one priority.”

Technology also plays a critical role in efficiency and safety. “We’re always looking for new ways to improve both safety and efficiency, and we’re quick to adopt proven technologies.”

One component of having the right people in place is meshing with the culture and community of TAG’s host country of New Zealand. The oil and gas producer strives to play an active but respectful role. “We’re a guest in New Zealand and it’s very important to us that we respect that and give back to our community,” said Pierce.

The company’s grassroots approach to community relations involve sponsoring activities that support safer and healthier communities, enhance the productivity in natural resources, and promote local education opportunities.

“We sponsor students to get actively engaged in science through field trips, educational programs and a scholarship. We also sponsor outdoor activities including swim meets and lifesaving, an annual kids’ athletic competition, a golf club, and the local rugby team,” said Pierce.

“It’s important to us to be part of the community, and these are things we really care about.”

The right pieces are in place, and TAG Oil thinks it’s their time to shine.

Company Information INDUSTRY

Oil & Gas HEADQUARTERS

885 West Georgia Street Suite 2040 Vancouver British Columbia Canada, V6C 3E8 FOUNDED

2002 EMPLOYEES

29 REVENUE

$53.7 million

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First Setting the indu

First Solar’s PV modules lower the cos

Written by: Eric Hardin

Solar dustry benchmark

st of utility-scale solar electricity in Australia

ng

Produced by: Rob Benson

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First Solar employees at the Greenough River Solar Farm

T

he global energy industry is witnessing a fundamental change, driven by economic growth, desire for affordable, reliable energy, global demand, the need for non-volatile energy sources and the need for a diversified energy portfolio.

First Solar heavily invests in and capitalizes on advanced technology, innovation and R&D. Starting with industry benchmark solar modules and extending to an advanced Balance of System (BoS) and O&M solutions, First Solar is benefiting from an R&D investment that exceeds that of any of its competitors.

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“We want our customers to believe in the quality and reliability of each of our technologies, as well as the enhanced benefit of integrating technologies throughout the power plant, to drive superior results,” said First Solar Asia Pacific regional manager Jack Curtis.

“Most of our competitors focus on one or a couple of the many components of the PV value chain such as manufacturing or construction,” added Curtis. “But almost none of them have the ability to manage the integration & components of the entire value chain

AUSTRALIA

like we do at First Solar.”

Investing in Technology Building on the lessons learnt from developing, building and operating utility-scale solar power plants, First Solar recognizes the importance in investing in its core Cadmium Telluride (CdTe) PV module technology. The technology has historically been hampered by lower efficiencies than traditional c-Si modules but has surprised industry observers by its unprecedented efficiency improvements in 2015.

First Solar claims it is now executing

against the industry’s most aggressive module technology cost and efficiency roadmap.

“We are the only manufacturer of solar panels taking advantage of the semiconductor materials that we use,” said Curtis.

“First Solar’s CdTe thin film is now rightly categorized as a high performance product,” said Raffi Garabedian, First Solar’s CTO. “At one time, we might have been characterized as a low cost, low efficiency technology, but consistent with our technology projections, we are now proving that CdTe thin film

Aerial view of the Broken Hill Solar Farm w w w. f i r s t s o l a r. c o m

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FIRST SOLAR delivers both industry-leading performance and sustainable thin-film cost structures.”

Garabedian noted that efficiency combined with other real-world performance attributes result in First Solar technology delivering higher energy yield and density than traditional multicrystalline Silicon (m-Si) solar panels. Given the same installed nameplate module capacity (Watts) with equivalent ground coverage ratio, he said, First Solar’s CdTe product will provide up to 8 per cent more useable energy from the same land area than m-Si, which gives First Solar a competitive advantage over other PV technologies. This advantage becomes

Installing the first module at Nyngan Solar Farm, the largest solar farm in the Southern Hemisphere

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Ampcontrol has successfully partnered with First Solar on projects in Nyngan and Broken Hill.

We offer a broad range of solutions to renewable energy projects for a sustainable future.

ampcontrolgroup.com

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increasingly pronounced in hot and humid locations, which explains why First Solar’s modules are installed in the majority of utility-scale projects in Australia.

In addition to the continued trend of efficiency records, First Solar’s modules are amongst the highest quality, most reliable modules in the world, having passed the industry’s most rigorous multi-stress testing protocols such including Atlas 25+, IEC Long Term Sequential and Thresher Tests.

“The cost of a power plant is very important, but the commercial and financial viability of both the project and the company that stands behind it is equally important,” said Curtis. “Predictable lifetime energy is critical to confidently project the expected value of the sellable energy from a PV plant designed for long-term operation.”

Current projects First Solar’s two primary ongoing installations in New South Wales include its Nyngan and Broken Hill projects.

The 102-megawatt Nyngan installation will be the largest solar

project in the Southern Hemisphere and is being constructed for AGL Energy.

In addition, First Solar developed, owns, and operates a diesel-hybrid project in Queensland. Electricity from the project will be sold to Rio Tinto Alcan under a long term PPA. Combing solar power with existing diesel generation offsets the cost of the fuel optimizes the efficiency of gensets and provides a more economical solution.

“That is an application that we think exhibits a lot of potential,” said Curtis. “We think combining diesel with solar represents a very significant market, so it’s a project we’re also pretty excited about.”

Thriving in a Skeptical Market Curtis said he has noticed a large shift in Australia’s perception of solar energy, as it has gone from just being a niche market to one that is now a common solution.

“Australia historically has been a bit behind the curve when it comes to utility solar adoption,” said Curtis.

“However, I think the large power companies in Australia are seeing what’s starting to happen globally w w w. f i r s t s o l a r. c o m

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FIRST SOLAR

First Solar Asia Pacific regional manager, Jack Curtis

and that they view utility-scale solar as an inevitability.”

Curtis believes that the industry has nearly come to a point where government policy will no longer be the primary reason for the adoption of solar power.

“Even though the policy backdrop driven by the current government isn’t as encouraging as it once used to be, I think we’re seeing a commitment to the sector that will detach from what is happening at the policy level, driven by the increasing commercial attractiveness of solar power. I think 130

October 2015

that is very encouraging.”

Moving Forward “We believe there are a few things that drive the market: one is the focus on policy, and the other is the energy gap, where emerging countries require to power up quickly to meet growth and infrastructure demands. The demand creators are fuel limitations, energy security exposure or fuel price volatility. As a company, our focus is to understand where the gaps and opportunities in various

AUSTRALIA

markets are, and how we can help leverage our experience in those markets,” said Curtis.

“Our primary focus is always to find a more cost-effective way to deliver solar electricity out of a utility-scale power plant, and to accelerate the rate at which solar continues to be adopted into the mainstream,” he said.

Curtis also believes that the increased use of energy storage is the future. He compared the current state of energy storage to where solar was five to six years ago, as it appears to be a logical step but wasn’t available at the right cost.

International Expansion With over 10 gigawatts (GW) installed across the world, First Solar believes clean affordable solar power is an important part of the worldwide energy mix.

Through integrating technologies, services and expertise across the solar value chain, First Solar delivers bankable PV energy solutions that help create a world powered by reliable and affordable solar energy.

According to Curtis, First Solar has aggressively pursued expansion opportunities over the past few years, including in Latin America, Asia and Japan, Africa, and the Middle East.

“We really want to make sure we’re localizing the right capabilities in the right markets on the back of what’s been a pretty aggressive expansion strategy for the company,” said Curtis.

Company Information INDUSTRY

Energy HEADQUARTERS

Level 3, 16 Spring Street Sydney, NSW, Australia 2000 FOUNDED

1999 PRODUCTS/ SERVICES

Renewable energy

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Lynas Corporation The Comeback Kid

As an integrated source of rare earths from mine to customer, Lynas has experienced highs, lows and everything in between. With a new CEO at the helm, the company is now positioned for long-term success.

Written by: Robert Spence

Produced by: Jeffrey Bailey

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Bagging plant at Mt Weld

F

or Lynas Corporation, rare earth elements continue to create huge opportunity, and challenge.

The Australian-based company is putting the finishing touches on a considerable corporate turnaround, traveling a tough road of repositioning itself as a major player in the rare earths market, which has been historically dominated by China.

Driving the turnaround is Amanda Lacaze, appointed CEO in June 2014 . With Lacaze at the helm, 134 October 2015

Lynas is poised for a breakout year.

Back story Originally formed in 1983, Lynas has gone through a whirlwind of changes in recent years. The company undertook its first mining campaign in 2008, developing the Mount Weld mine in Western Australia, one of the largest and highest-grade known deposits of rare earths in the world. “In 2010, rare earths looked like a runaway market with the price spiking at more than six times

SECTOR

the current prices,” said Lacaze.

“Lynas raised significant funding and accelerated construction of the LAMP facility in Malaysia seeking to take advantage of this boom.”

According to Lacaze, when the rare earths bubble burst in late 2011, the company’s corporate structure and style of operations weren’t adjusted to the new market settings. In addition, ramp up of production at the LAMP facility was delayed by both operating challenges and legal challenges.

The result by the middle of last

year was a business that had consumed a huge amount of debt and equity funding in developing both the mine and the larges processing plant, but was yet to show a return on that investment.

“When I joined, production was unstable. We had high costs and were very cash consumptive. We had to reset our cost base and improve our operating performance while dealing with a market that was significantly less profitable than before.” w w w. l y n a s c o r p . c o m

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Rebirth of Lynas Appointed CEO in June 2014, Lacaze’s first plan of action was to establish a strategic framework to put its financial house in order.

“When I first started, Lynas had corporate offices in Sydney, KL and Perth as well as the facilities in Mt Weld and Kuantan. We decided it was best to ensure our people were co-located at our production facilities with a small number in Perth. This improved teaming and business efficiency and also deliver lower costs,” said Lacaze. “Shutting down some of the offices proved significant savings for us.”

Another critical component in the turnaround was reducing the company’s headcount.

According to Lacaze, the unpopular move can actually spark improvement.

SUPPLIER PROFILE

Amanda Lacaze, CEO and Managing Director

SIBELCO GROUP

Founded in 1872, the Sibelco Group has grown into a multinational business with more than 245 mining and production facilities worldwide. In 2012, Sibelco acquired QMAG Limited, one of the world’s most trusted producers of high grade Caustic Calcined Magnesia (CCM).

Sibelco has partnered with Lynas from early 2014 to provide our Caustic Calcined Magnesia (CCM) and is helping Lynas effectively stabilise their production process and maximise RE recoveries. At Sibelco we pride ourselves on our capabilities in operations management, process engineering and research and development. We have a team of highly qualified and experienced technical experts in the hydrometallurgical industry, who work closely with Lynas staff to improve process efficiency and increase the value in use of our magnesia.

Sibelco has a global portfolio of customers and our magnesia products are sold and delivered to over 30 countries worldwide. We provide tailored logistics solutions through our global network of service providers and the global Sibelco presence. Through our QMAG product range, Sibelco Australia is well positioned to deliver further growth and support our magnesia customers long into the future.

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VP of Production Kam Leung stands next to concentrate ready for shipment to Malaysia

“My experience is there are many times when reducing your headcount improves your results.

When you start, people find it counterintuitive; however, when you have many people working together and they’re not fully utilized, they become accustomed to not doing their best work every day. It’s also not at all satisfying for staff to feel they don’t have productive work to do,” Lacaze said.

“We worked really hard to create a culture of performance. Quality of action is something we focus on and I’m a big believer that there is no substitute for hard work.”

With the framework for a concentrated workforce in place, production is now profitable and sales revenues continue to grow.

“As CEO, one of the most important aspects of my job is getting everyone in the Lynas team to do the best job possible,” Lacaze said.

As a sign of the good times to come, Lynas recently announced a restructure and debt agreement with its 2 lenders. The deal, according to Lacaze, is a natural next step for the company.

“We’ve come a long way: We’ve fixed production issues, we’ve improved engagement with our w w w. l y n a s c o r p . c o m

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LY N A S C O R P O R AT I O N

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customers, and now this new debt restructure puts us in a position to complete the turnaround.”

Driving the change For Lacaze and her team, diversity is a large contributing factor to drive positive change.

“My executive team comprises three women and 6 men. We have Australians, Malaysians and others from various European countries.

It’s a good combination with varying backgrounds,” said Lacaze. “I want diversity in our company whether it’s gender, experience, age, ethnicity. It is my experience that

SUPPLIER PROFILE

varied experience leads to richer discussions on issues and new and different ways to address business challenges.”

As surprising as it sounds, Lacaze had no prior experience in the mining industry, having spent the majority of her career focused on marketing.

“Over the past 15 years, I have primarily worked in the IT&T industry.

When I took this job many people in the industry wondered how I would run a rare earths business.

My approach is that I knew how to manage performance, and I knew how to run a profitable business. I

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Employees: 13 Established: 1st August, 2005 Management: • Brad O’Donnell – Managing Director • Mike Fairnie – Business Development Manager • Tania Stamboulakis – Project Manager Website: www.fmgloballogistics.com.au

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Administration staff at Mt Weld

A shift supervisor instructs a tunnel furnace worker

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did need to learn about rare earths – and I made it my business to learn as much as I could from the experts in our company and at our business partners as quickly as possible,” said Lacaze.

Company Information INDUSTRY

Setting the tone For Lacaze, the job of the CEO is to cultivate the energy and spirit of the organization.

“I update all my staff every quarter on all important aspects of business performance. I do this in small groups so we can talk in detail and I can be sure that everyone knows what’s going on with the business and we build trust in each other.

People in this organization are working harder than they’ve ever done in their lives and I want them to be successful,” said Lacaze.

“The result is we bring the sum total of our experience from all those areas and therefore we’re able to have rich conversation.”

Lacaze remains very positive about the future for rare earths and for Lynas.

“Rare earth minerals are used extensively in growing markets including environmentally significant segments such as energy efficient cars and the new technology in wind turbines,” said Lacaze. “ Lynas offers users environmental assurance from mine to finished product and this will become increasingly important as the market grows.”

With the right pieces in place, Lynas Corporation is now poised to become a fully-integrated provider of rare earths for the long-term.

Mining Global HEADQUARTERS

Level 1, 7 Tully Road East Perth Western Australia Australia, 6004 FOUNDED

1983 EMPLOYEES

650

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Solvi Valorização Energética:

DEDICATED TO THE QUE

ALTERNATIVE SOUR

Company concentrates its efforts on renewable energy ge pioneering the use of landfill biogas for power generation Writen by: Flávia Brancato | Produced by: Taybele Piven

EST FOR

RCES

eneration,

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reated in 2006 specifically for operations in the renewable power generation market, today Solvi Energy Recovery (EVS), a Solví Group branch, is the only company in the Brazilian energy sector to deploy and operate three thermoelectric plants fueled by landfill biogas.

The Termoverde Salvador plant opened in 2011. With 20MW of power, it is the first fuel the biogas in the northeast region, located in the Battre landfill—Salvador city, Bahia state. The production capacity is 150 megawatts a year, enough to supply a community of 300,000 people.

As these projects succeed, EVS continues to expand its operations and it is in the process of completing another plant in Caieiras, state of São Paulo. With a 30 MW capacity, it is already considered one of the largest thermoelectric power the world’s landfill biogas.

Termoverde Caieiras

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Biotérmica Minas do Leão

The project should start operations early next year; however, the company will have an installed capacity of 58,5MW as well as growth plans for upcoming years to reach 100MW in this segment.

“The company is responsible for the technical and economic feasibility of projects of clean and sustainable energy generation, contributing to minimizing the emission of greenhouse gases and still with the diversity of the Brazilian energy matrix, meeting the growing demand for clean electricity,” said Carlos Alberto Nunes Bezerra, Solvi Energy Appreciation director.

Dodging the high cost of market According to the latest figures released by the Consumer Price Index, the cost of electricty in Brazil has increased 60 percent in the last 12 months, and that is a major concern. “The surge

“The company is responsible for the technical and economic feasibility of projects of clean and sustainable energy generation, contributing to minimizing the emission of greenhouse gases and still with the diversity of the Brazilian energy matrix, meeting the growing demand for clean electricity” – Carlos Alberto Nunes Bezerra, Solvi Valorização Energética director

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Termoverde Salvador

in electricity prices is now one of the great villains of inflation in Brazil.

And the picture is not encouraging: by the end of 2015, the average tariffs will go up 40%, according to government’s Ministry of Mines and Energy projections,” said Berzerra.

The director also points out that the high price of electricity not only lowers the Brazilian consumer purchasing power, but also reduces drastically the competitiveness in the productive sector, as factories and industries have to take the increase in operating costs.

There is already a strong movement aimed at enabling projects, economically and financially, to diversify the energy matrix. “Resources 148

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such as wind, waste, solar radiation and even tides, are used today in the generation and increased supply of electricity,” said Bezerra.

The private sector has made significant contributions to facilitate such projects, and thus offers a reliable and clean energy. One of the solutions offered by EVS is to burn methane gas—derived from the decomposition of solid waste disposed in landfills—to generate electricity.

“To enable more projects with renewable energy generation, specially using biogas from landfills, it is necessary to have an electricity sale price even higher than long-term contracts practices, offsetting the smaller scale of these projects, as well as creation of new fiscal incentives, less w w w. s o l v i . c o m / v a l o r i z a c a o - e n e r g e t i c a

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Engines Generators

bureaucracy, and time for licensing approvals of installation of smaller enterprises,� added the director.

Quality, safety and technology With the installation of new thermals, EVS is in the process of implementing ISOs 9001 and 14000 over the next four years, seeking consolidation across all business units through an integrated management system for quality, health, safety and environment.

The company has adopted a corporate model where SolvĂ­ leaders actively participate in aspects from business strategy formulation, contribution to improvements and alignments, to minimizing risks and maximizing opportunities, acting, defining and monitoring the priorities of each operation.

EVS uses one of the best technologies to generate energy through internal combustion engines, as well as generators that feature the best cost-benefit of the market. The dimensioned motors and generators 150

October 2015

BRAZIL

used in the projects have high electrical efficiency and performance and construction features that meet the limits for atmospheric emissions including from countries such as Germany and Italy.

Society and Environment One of the major concerns of the EVS during the deployment and operation of its projects comes down to environmental management, as well minimization of potential impacts. Projects are specifically developed to cause the least amount of impact possible, complying with all norms and regulations.

“Overall, we can say that the implemented projects are considered ‘clean’ because it does not cause any interference on the soil, does not pollute water sources, does not alter the existing topography, does not

Termoverde Caieiras

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Termoverde Caieiras

impact negatively people’s social and economic, and utilizes non-drinking water in its cooling process,” said Bezerra.

Another example of social responsibility is company’s community inclusion program held at Salvador Landfill, which is already scheduled to be included in the thermal locations of Lion Mines and Caieiras. “We are starting to implement a program where we interact with nearby community with the intention to impact positively and improve the quality of life of those who live near the projects,” he added.

Throughout Solví group there is a program named Volunteer Day that aggregates various actions and calls for citizenship, solidarity, social and environmental responsibility. This year, the expectation is to mobilize over 1,100 volunteers, benefiting around 9,000 people.

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Company Information INDUSTRY

Energy HEADQUARTERS

São Paulo - SP, Brazil E S TA B L I S H E D

2006 EMPLOYEES

20 PRODUCTS/ SERVICES

Production and sale of renewable electric energy is encouraged

The near future EVS plans to invest about USD 34 million, focused on the preparation of studies, designs, permits/ licenses, construction, supply and installation of equipment for the treatment of biogas generation and connection/transmission of electricity.

Additionally, according to Bezerra, over the next few years, EVS plans to implement new thermal plants with renewable sources in Brazil and seek feasible solar energy projects. “The company’s revenue this year will reach USD 12.8 million and should double in 2016 with Caieiras thermal plant,” said the director.

MANAGEMENT

Director President: Lucas Quintas Radel Director: Carlos Alberto Bezerra

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Comp

NEA South America:

ENGINEERING AND MANUFACTURING OF COMPRESSOR UNITS

pany strives to stay ahead of their time through technological leadership Written by: Flรกvia Brancato | Produced by: Carolina Majer 155

NEUMAN & ESSER SOUTH AMERICA

T

he Neuman & Esser Group, founded in 1830 and headquartered in Germany, is considered one of the pioneers in the design and manufacturing of reciprocating compressors (piston) business, as well as an industry benchmark on the international level. To maintain continuous technological development in more than 180 years of tradition, the company has the support of one of the most modern and complete research and development centers, including a number of issued patents.

The company’s work methodology also stands out. Each and every business unit is completely and totally independent, with manufacturing facilities, sales, application, post-sale and local engineering for new compressor units manufactured, existing compressors revamped, maintenance services and original spare parts supply.

Neuman & Esser South America Facade

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S

Incahuasi project

Market and production in South America With a manufacturing plant in Belo Horizonte, Minas Gerais state, the South American branch is responsible for the engineering and manufacturing of compressor units with respective peripherals, attending in full compliance technical requirements, operating conditions and scope range supply demanded by customers.

“Our nationalization average level is 70 percent in weight and price, and our products are registered at FINAME [of the Brazilian Development Bank]” explained Marcelo Veneroso, director of Neuman & Esser South America.

Backed up by the ISO 9001: 2008 and OHSAS 18001: 2007 certifications, the product line covers

“Our nationalization average level is 70% in weight and price, and our products are registered at FINAME [of the Brazilian Development Bank]” – Marcelo Veneroso, director of Neuman & Esser South America

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NEUMAN & ESSER SOUTH AMERICA reciprocating compressors, both oil-free and lubricated, for compression of all technical gases such as natural gas, H2, O2, N2, CO, CO2, air, among others; output range to 100,000 Nm3/h suction volume, 30,000 kW driving power and 1,000 bar discharge pressure. NEA’s manufacturing program covers different building forms with several sizes of frames.

Horizontal compressors (boxers) - solutions usually applied to oil & gas markets, petrochemical and other applications where machines must comply with API-618 standard norms.

Vertical compressors and in “V� - commonly applied in chemical, pharmaceutical industries, air separation plants, gas recompression to power turbines for thermoelectric plants, breweries (producing CO2), etc.

Horizontal compressors (boxers) - solutions usually applied to oil & gas markets, petrochemical and other applications where machines must comply with API-618 standard norms.

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Refinery Abreu e Lima - RNEST

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Vertical compressors and in “V” - commonly applied in chemical, pharmaceutical industries, air separation plants, gas recompression to power turbines for thermoelectric plants, breweries (producing CO2), etc.

At the same time, the supply of new machines Neuman & Esser South America also has a remarkable performance in revamping existing machines (NEA compressors, Demag and other manufacturers).

The director stateed that the company primarily operates in each and every segment involving compression of industrial gases, with great emphasis on the oil and gas sector.

“Our most significant customer in Brazil is Petrobras, followed by other oil and gas companies and petrochemical industries— ultimately all those that possess gas compression in their production processes.”

Marcelo Veneroso, director of Neuman & Esser South America

“The success of this project reinforces, once again, the renowned technical expertise and commercial competitiveness of Neuman & Esser South America — these being the largest compressors to have ever been supplied by a national company” – Marcelo Veneroso, director of Neuman & Esser South America

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Neuman & Esser South America Facade

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Investing in quality Investments of Neuman & Esser Group for compressor segments involve different focuses. The construction of plant and engineering in the city of Belo Horizonte in 2007, and two subsequent expansions, had investments of USD $12.1 million.

In addition to the training and development of professionals, both in Brazil and in Germany, the company also participates in fairs and events, conducts technical seminars dedicated to specific customers and also develops projects and marketing actions.

The company uses proprietary technology of its parent company in Germany, relying on the excellence of a research and development area.

Gathering a group of professional and appropriate facilities (test benches/ equipment), they are capable of simulating the most diverse and severe operating conditions of the compressor, aimed at developing technologies

Refinery Abreu e Lima - RNEST - H2 Compressor

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Refinery Abreu e Lima - RNEST

and materials that will extend the equipment’s shelf life.

Neuman & Esser has developed and patented several applied systems, which, among others, include: hydraulic coupling of the piston rods, capacity control systems for harmful variable space, piston course displacement control system capacity, labyrinth seals rings, special materials for packing rings, cylinders and compressors with pressurized housings that guarantee zero exposure to the atmosphere.

Hydrogen compressors for Petrobras Veneroso explained in detail the process of supplying the compressors in 2010 to one of the company’s main customers.

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UTG Sul Capixaba - Natural Gas Compressors

“Petrobras, within its program of expansions and upgrades in the supply and refining—SUPPLY-REF—areas, promoted the implementation of the Abreu e Lima Refinery, in Ipojuca Pernambuco state, which has two HDT diesel units (hydrotreating). Upon completing the technical report phase and commercial discussions, Neuman & Esser South America received on August 01, 2008, the supply permit for compressors, and an amount that surpassed USD $24.1 million. This refers to the six reciprocating compressors designed in compliance to the API 618 norms and the oil company requirements. After on site assembly, each compressor unit occupies an area of approximately 3,200 square feet and approximate weight of 100 tons.

Overall, the supply scope also comprised all ancillary units and peripheral items such as electric motors and their excitation panels, carcass lubrication units, cylinder cooling water units, pressure vases, valves and security control items. w w w. n e u m a n - e s s e r. d e

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CAT™ ELECTRIC MOTORS AND GAS ENGINES. QUALITY AND RELIABILITY FOR GAS COMPRESSION Leadership in gas engines; Engines certified for the most restrictive levels of emissions and high fuel efficiency; High-Tech Electric Motors Cat™ to drive gas compressors; Technical teams specialized in application engineering and product support.

Incahuasi project

“The success of this project reinforces, once again, the renowned technical expertise and commercial competitiveness of Neuman & Esser South America—these being the largest compressors to have ever been supplied by a national company,” saids the proud director.

Action plan For the next five years, the group has a few guidelines defined. Among many others, especially the expansion of technology leadership, global expansion in the reconstruction and modernization areas, further decentralization of the service and repair support centers and the expansion of the combination between reciprocating compressors and other types of compressors (screw, turbo, etc.).

“With the increase in global market share, we also envision being 164

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Company Information INDUSTRY

Mechanical industry, Capital goods for Order HEADQUARTERS

Belo Horizonte, MG Brazil E S TA B L I S H E D

1997 EMPLOYEES

45 PRODUCTS/ SERVICES

positioned among the three largest producers of API 618 gas compressors producers in the world,” said Veneroso, who added: “We plan an increase in sales volume by 50 percent by 2020 “.

To achieve these goals, in addition to focusing on the development of a market-oriented, the director goes straight to the point.

“The company will use an aggressive competition and/or utilization of new market segments, as well as greater interaction between the group’s various units using the Global Purchasing,” he concluded.

Compression systems (reciprocating compressors), Original spare parts supply, Maintenance services for compressors MANAGEMENT

Director: Marcelo Veneroso

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ABESCO:

Brazilian Association of Energ Conservation Service Compa Written by: LaĂ­s Cavassana | Produced by: Carolina Majer

gy anies 167

ABESCO

F

ounded in 1997, ABESCO is a civil, non-profit entity, which officially represents the Brazilian segment of energy efficiency, developing and promoting actions and projects for the market growth.

The organization currently has more than 90 members and works to disseminate and promote the energy efficiency, a technical-economic activity which aims to provide the best consumption of energy and water, reducing related operating costs, minimize contingencies in supply of inputs and introduce necessary instruments for management in companies and enterprises. The ESCOS (energy service companies) perform these activities trough projects of energy efficiency with energy reduction potential that often reach 30% of economy.

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ANEEL meeting 01/08/2015

Therefore, the organization has been working on several fronts, and one of them is together with the Brazilian Micro and Small Business Support Service of S達o Paulo Estate (Sebrae-SP, abbreviation in Portuguese), by producing folders of awareness about the importance of rational consumption of natural inputs, both in industry and commerce and services, as well as an energetic mapping which will allow the businessman to identify potential reduction focuses on consumption. Also has worked with regulatory agencies in order to promote the development and growth of the sector, holding intense negotiation with the Brazilian Electricity Regulatory Agency (ANEEL, abbreviation in Portuguese). Besides, has constantly worked with the Brazilian Development Bank (BNDES, abbreviation in Portuguese) and other development banks to format lines of financing appropriate to the sector that enable the realization of these w w w. a b e s c o . c o m . b r

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ABRECON

Signing of the cooperation and collaboration agreement with Japanese Business Aliance for Smart Energy Worldwide (JASE-W)

projects.

Also in the public sector, ABESCO has formatted partnerships with various ministries. With the Ministry of Environment (MMA, abbreviation in Portuguese), was made a union to leverage energy efficiency measures in buildings, since these are responsible for 50% of all electricity consumed in the Brazil. With the MMA, ABESCO contributes to improve environmental aspects by saving energy. With the Ministry of Development, Industry and Foreign Trade of Brazil (MDIC, abbreviation in Portuguese), takes part in the Joint Committee Brazil-Japan for the promotion of commerce, investment and industrial cooperation, with the Ministry of Economy, Trade and Industry of Japan (METI). As a result of the action, will be created a guidebook in energetic efficiency for the Brazilian industry in order to define specific consumption of the production for each segment. The first sectors covered will be textiles, cement and metals, that have gone trough a pre energetic diagnosis process carried out by representatives of the 170

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BRAZIL

Company Information INDUSTRY

Energy HEADQUARTERS

S達o Paulo - SP - Brazil E S TA B L I S H E D

1997 NO OF MEMBERS

90 MANAGEMENT

Energy Conservation Center, Japan (ECCJ). And also cooperation and collaboration agreement in issues of investment in consultancy of energy efficiency projects in Brazil with the Japanese Business Alliance for Smart Energy Worldwide (JASE-W).

Finally, the association also has been promoting for 12 years the biggest event of the sector in the country, the Brazilian Congress on Energy Efficiency (COBEE, abbreviation in Portuguese), which annually brings together key market players in an environment conductive to the establishing of network, exchange of experiences, partnership and business.

President: Rodrigo Aguiar CFO: Marcelo Sigoli Technical Director: Alexandre Moana Executive Advisor: Bruno Leite Administrative: Silvana Queiroz

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ABEE贸lica:

Brazilian Wind Energy Association Written by: Elbia Silva Gannoum | Produced by: Carolina Majer

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ABEEólica

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epresenting companies belonging the supply chain of the wind industry, ABEEólica, a private non-profit institution contributes, since its foundation, to the development and recognition of wind energy as a clean, renewable source, of low environmental impact, strategic and competitive for the composition of the national energy matrix.

To promote wind power, ABEEólica has worked continuously and strategically, representing its members, at important institutions.

The Association has ongoing relationships with key governmental agencies active in matters related to energy, environment and sustainability, market regulation, among others.

Simultaneously, ABEEólica organizes events that promote the relationship and business environment among investors of Wind Sector, such as ABEEólica Business Meetings, Breakfast with Associates,

Caitité

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BRAZIL

workshops on regulation and commercialization, as well as courses and the biggest event of wind energy in the Southern Hemisphere: the Brazil Windpower. In addition, the ABEE贸lica participates in the main national and international events of wind industry, as well in the Brazilian electricity sector events, with the mission to report on wind power and its path of virtuous growth in Brazil. w w w. a b e e o l i c a . o r g . b r

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ABEEólica

Mel ii

Mission: Insert and sustain the production of wind energy as a source of national energy matrix, promoting competitiveness, consolidation and sustainability of wind energy industry.

Vision: To be recognized as the Association that represents the supply chain industry in a legitimate, ethical and transparent manner.

Values: • Quality, ethics and compliance with legislation • Social and environmental responsibility • Sustainability • Transparency • Cooperation with all members of the supply chain 176

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Structure / People Based on the concept of professional management, ABEEólica’s governance format consists of a chief executive, in the figure of Elbia Silva Gannoum, a Board of Directors that consists of 25 members and chaired by Marcio Severi, and an Audit Committee, all counselors come from the associated companies.

The directors have a fundamental and strategic role in ABEEólica’s decision-making. Among the tasks are the establishment of forms of action of ABEEólica before its stakeholders; definition of policies, plans, goals, strategies and performance guidelines of the institution of guidelines and demonstrations on issues affecting the industry and the wind energy market in the country and abroad.

ABEEólica has a entirely dedicated team

Key people

Chief Executive Elbia Silva Gannoum Technical Director Sandro Yamamoto Chair of Board of Directors Márcio Severi

Vice Chair of Board of Directors Carlos Mathias Aloysius Becker Neto Laura Fonseca Porto Lauro Fiuza Júnior Adelson Gomes Ferraz Paulo Celso Guerra Lage Pedro Figueiredo Cavalcanti Roberto Miranda Rafael Justi

ABEEólica team

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ABEE贸lica Wind Farm

for the Association and its members chaired by Elbia, and managed by the Technical Director, Sandro Yamamoto. They are, in all, four areas in our workforce: Technical Coordination, Regulation and Infrastructure; Coordination of Communication and Relations with Associates; Administrative and Financial Coordination; and the Executive Secretariat.

Sector Wind energy is a renewable energy source complementary to solar, hydro and biomass. Clean, socially just, and with very low environmental impact, wind power is a real option for composition of global power arrays to generate power without polluting, low use of water in the operation of the plants and harmonious coexistence with economic and social activities present in the deployment areas of wind farms.

In Brazil, wind power is fundamental to the energy matrix representing 178

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Company Information NAME

ABEE贸lica - Brazilian Wind Energy Association INDUSTRY

Wind Energy HEADQUARTERS

S茫o Paulo, SP - Brazil E S TA B L I S H E D

2002 NO OF MEMBERS

just over 5% of this matrix with about 7 GW. In 2014, wind power plants generated 12 TWh of wind power, with an average capacity factor of 38% and average generation of 2GW average over the past three months, and the investments related to wind power accounted for 79% of the total amount invested in renewable energy.

This source has brought to the country the option of an economic and sustainable generation to reach the plateau of the second most competitive source. The forecast wind energy growth in Brazil is positive for the 2050 scenario, when will have about 80 GW, accounting for about 20% of the matrix.

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HEAVY OIL CONVEYANCE BEYOND BORDERS Safety and secure fuel transportation in South America

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Wirtten by: Rebecca Castrejon, Editor Produced by: Jassen Pintado, Project Manager for WDM Group LATAM Interviewee: Andres Mendizabal, CEO for OCP Ecuador

OCP ECUADOR

O

CP Ecuador S.A. (Heavy Crude Oil Pipelines) became the country’s leading enterprise for heavy crude oil conveyance after only 12 years running. OCP is committed to Ecuador’s development by complying with environmental standards through responsible procedure management, investing in work safety and management, and improving quality of life conditions for its workforce and surrounding communities.

Cayagama Pumping Station

The pipelines runs through 300 miles located between 4 provinces, 11 cantons and 33 parishes.

The Amazonas, Cayagama, Sardinas and Paramo pumping stations provide enough strength to the crude oil’s flow in order to reach its highest point across the Andes mountain range, at more than 13,000 ft. Afterwards, the fluid descends toward the coast, not before passing through two pressure reducing stations: Chiquilpe and Puerto Quito. Besides, The OCP Sea Terminal at Punta Gorda -less than 10 miles from the city of Esmeraldas- has storage capacity to house 3 million barrels, operating in compliance with OCIMF (Oil Companies International Marine Forum) and ISGOTT (International Safety Guide for Oil Tankers and Terminals) global standards.

More Than a Decade’s Worth of Experience in Energy Conveyance Construction of Ecuador’s heavy oil pipeline

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began on June 26, 2002, after aproval of the country’s government and being granted a license from the Environmental Affairs Ministry.

The first pumping capacity tests took place on September 5, 2003, when 400K barrels from OCP Ecuador were shipped inside the Cabo Virgenes oil tanker; and after permission was granted by the Energy and Mining Ministry of Ecuador, the pipeline finally begins operations on November 14 of that same year.

The first milestone came a year after, when the Merchant Marine and Coastal Department (DIGMER) certified OCP Ecuador’s Sea Terminal among the safest oil products port in Latin America.

Paramo Pumping Station

Key People

Andres Mendizabal CEO for OCP Ecuador Argentine-born Mendizabal is an Industrial Mechanical Engineer who graduated from Comahue National University (Argentina) in 1995. His labor in fluid conveyance started as soon as he finished college.

By 1999, he became the manager for pipeline conditions at Oleoductos del Valle S.A. (Oldeval); and

by March of the following year he was appointed as the company’s Chief Engineer.

His tenure at Heavy Oil Pipelines (OCP Ecuador) began in 2002 as Operation Engineer and in October 2005 he was appointed as Vicepresident in charge of operations. Five years later, Mendizabal is appointed as Executive President / CEO for OCP Ecuador.

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OCP ECUADOR

OCP Ecuador’s right of way

Current Operations and Valuable Contributions

Cutting-edge technology used for everyday operations

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OCP Ecuador has increased its operations volume by carrying heavy oil also from neighboring countries, such as Colombia. Since late 2013, an interconnection and transportation agreement was established to convey crude oil from Southern Colombia to the Esmeraldas OCP Sea Terminal.

Also, OCP Ecuador’s contribution to the country’s economy has resulted in transporting more than 630 million barrels since 2003, valued at more than $40 billion.

L AT I N A M E R I C A

In 2014, the company completed the construction of the first bi-national loading and unloading bay for tank wagons at the Amazonas freight terminal, located in Nueva Loja, a city bordering Colombia. The facility has a 12,000-barrel capacity.

“OCP’s infrastructure has been a very important asset for the whole country; without it, there wouldn’t have been any $40 billion revenue during the last 12 years,” stressed Andres Mendizabal, CEO for OCP Ecuador.

Esmeraldas sea terminal

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OCP ECUADOR

The Management’s Philosophy “We have focused on carrying a safe, efficient and trustworthy operation committed to the environment,” Mendizabal pointed out.

Mendizabal’s education took place in Argentina, in the United States and in Ecuador, and was hired

by OCP in October 2005. Since the beginning of his tenure with the company, each of OCP’s departments increased their efficiency 186

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and competitiveness after introducing a process management system. This success resulted in the deployment of a second risk management program.

The Vision of a Latin American Pipeline Network The aforementioned bi-national agreement between Colombia and Ecuador for shared w w w . o c p e c u a d o r. c o m

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OCP ECUADOR use of OCP’s pipeline was a groundbreaking achievement within Latin America’s integration efforts involving fuel resources. Both countries’ governments, along with the main players in the industry from both public and private entities joined forces to enable this operation.

Pressure reducing station at Puerto Quito

“This year we are looking forward to increase the flow of Colombian crude oil through OCP, thus reinforcing the region’s fuel network,” Mendizabal added, he also said that since this agreement went into operation, more than 4 million barrels of Colombian oil have been conveyed through OCP Ecuador’s pipelines, docks, and unloading bays.

This “fuel integration” concept could expand very soon into Northern Peru and East Ecuador as soon as a working strategy is properly planned during upcoming years.

Staff Management Staff safety and health standards are a top priority for OCP Ecuador. The company’s management provided the best conditions for the creation of the Workplace Health and Safety Management System, based on standards from different entities such as ILO (International Labour Organization, a UN agency), the Andean Workplace Health and Safety Resources, and current domestic laws and safety codes. Also, providing proper training is one of the most

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important factors in staff management.

The company’s training for new hires has four areas: management, technical, skills and basic operations.

It must be known that the company’s human resource management dept. has received awards from Ecuador’s Labor Ministry, earned through a strict compliance of Management Systems and integration of disabled individuals in their workforce.

Quito Control Room, where the pipeline’s operations are run

“Our personnel is one of our main assets, and they are also part of our social responsibility,” the CEO added.

A Commitment to the Environment Since its very beginnings, OCP Ecuador has displayed its commitment to the environment by adopting green initiatives and earning certifications such as ISO:14001 in all of their

“This year we are looking forward to increase the flow of Colombian crude oil through OCP, thus reinforcing the region’s fuel network” –Andres Mendizabal, CEO for OCP Ecuador w w w . o c p e c u a d o r. c o m

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OCP ECUADOR procedures and facilities since 2005.

Some of the company’s procedures for environmental impact management are: An environmental management team is ready at every station in case of an emergency

1. Internal monitoring of fluid unloading, wastewater treatment and water quality in receiving waters.

2. Solid residuals management.

3. Compliance monitoring according to domestic environmental laws.

4. Air quality and emissions monitoring.

Support for the Community

Contributions to communities in the pipeline’s route

OCP Ecuador has always cared for and invested in the community and its social value.

Some of the company’s projects in this area include the PERLA (the Lago Agrio Recreational Reserve) eco-tourism project; construction of the Abya Yala Multicultural and Bilingual School, where 200 pupils from five neighboring native communities have access to education; and also the construction of the Angel Barbisotti Polytechnic Institute, in Esmeraldes, hosting 1,000 students.

“The $40 million we have invested in social projects have resulted in more than 650 programs within three major areas: education, health and productivity,” the executive noted.

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Business Affairs “Our suppliers are essential to our labor and to our commitment to generate social and economic value,” Mendizabal expressed, in lieu of the company’s operations within the domestic market.

A buoy where ship loading maneuvers are

96 percent of OCP Ecuador’s supply chain consists of domestic purveyors. In 2013, $64 million were invested in these Ecuadorian collaborators; meanwhile, only $3 million were spent on contracts with foreign companies.

carried for crude oil exports

To ensure quality control and best business practices, the OCP Ecuador suppliers’ performance is under constant evaluation; these companies must comply also with environmental, health and safety standards.

Fuel tanks at station

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- Sistemas inalámbricos Wireless Networks, Punto - Multipunto.

- Enlaces Carrier Class hasta 200km.

- Radios microondas en 1.5/2.4/5.8/7.0/2.3 Ghz. - Diseño e implementación de redes Alámbricas e Inalámbricas.

- Venta e instalación de infraestructura para telecomunicaciones, torres, shelters, cables de RF y datos.

- Sistemas de Automáticos de supresión de fuego.

- Sistemas de Detección de Intruciones.

- Sistemas de Audio IP. - Redes de Comunicaciones para Scada.

Comercializadores de:

Quito: Isla Pinzón N43-61 y Emilio Sola Telf:(+593 2)2279550/2440972 ZIP Code:170501 Cel:099 917 4150 Email:depventas@fulldata.com.ec www.fulldata.com.ec Guayaquil: EDITY S.A. Calle Sexta 405 y Av. Las Lomas Telf:(+593 4)2888184/2887572 Cel:099 919 3383 Email:depventas@fulldata.com.ec www.fulldata.com.ec

L AT I N A M E R I C A

Company Information

Challenges and Forecast The global oil crisis and the drop in oil prices are affecting -directly or indirectly- every industry benefitting from this activity. In the case of OCP Ecuador, the company has prepared cost management resources to face any slight decrease in crude oil conveyance.

NAME

OCP Ecuador (Heavy oil pipelines) INDUSTRY

Heavy oil conveyance

“We are searching for ways to maintain our efficiency levels or bring down our fees, so costs for oil producers are reduced also,” Mendizabal finalized.

HEADQUARTERS

Quito, Pichincha, Ecuador FOUNDED

“OCP’s infrastructure has been a very important asset for the whole country; without it, there wouldn’t have been a $40 billion revenue during the last 12 years”

2001 EMPLOYEES

290+ REVENUE

US $190 million (up to December 2014) WEBSITE

www.ocpecuador.com

– Andres Mendizabal, CEO for OCP Ecuador

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