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www.energydigital.com | July 2015

Five Tips for Greener Computing TOP 10 Solar Power Farms

SPECIAL R E P OR T

EEGSA

SUSTAINABLE

ENERGY

FOR ALL SPECIAL FEATURE: LANES GROUP


DIRECTOR’S COMMENT

How is the corporate world reacting to the undeniable need for change? ENERGY IS A GLOBAL issue that deserves – no, requires – worldwide

attention: A person would be hard-pressed to find another in opposition of that statement, especially as we enter the second half of 2015. With this in mind, we focused on one main theme for the July issue of Energy Digital: The corporate world’s reaction to the undeniable need for global change. Reducing the corporate carbon footprint is no longer an option however it does not have to result in a reduction of productivity—or an increase in cost. Contributing writer Sasha Orman offers five tips to help implement sustainable practices within an organization’s IT department, a relatively simple change that can yield rather a significant result: greener computing across the entire company. The continued rise of alternative energy sources is by far the most common reaction the world has seen with regard to the global energy crisis. This month, we reveal 10 of the largest solar farms across the globe, each of which helps to illustrate just how “big” our concern for renewable energy has become. (Spoiler Alert: Our top pick is estimated to cost more than USD$4 million when completed). Finally, through an exclusive interview with Rebecca Castrejón, senior editor of our sister brand, Business Review América Latina, General Manager Jorge Ramón Alonso Duarte discusses how the leading utilities company in Guatemala, Empresa Eléctrica de Guatemala, S.A. (EEGSA), is using innovation to drive sustainability and set an example for the rest of the country.

Enjoy the issue! Jennifer White Director of Content, WDM Group jennifer.white@wdmgroup.com 3


CONTENTS

6

Features

CLEANTECH Five Tips For Greener

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

The Not-SoWasteful Role Of The WTE Market

14 4

July 2015

TOP10

Global Solar Farms

20


EUROPE EUROPE

34

Lanes Group

46

C&F Green Energy

A M E R I C A L AT I N A

A M E R I C A L AT I N A

70

Ingenio Risaralda

AUSTRALIA

58

EEGSA

USA P hiladelphia Gas Works

78

86

Horizon Power

AFRICA

Gulf Power

98

5


CLEANTECH

Five tips

for Greener Computing A more efficient and sustainable IT department is the future—here are five ways to get started Writ ten by SASHA ORMAN

6

July 2015


7


CLEANTECH WHEN THINKING OF ways to improve efficiency and the environmental footprint of your business, chances are that the first topics to spring to mind involve divisions like production or distribution. But energy consumption is a comprehensive concern, and there is room for improvement in every division. Green Computing is the idea that a company’s IT department can be just as efficient, sustainable, and environmentally conscious as any other part of operations. It’s an idea that can

save your business money and improve its standing with your community. Building a truly green business takes time, but no matter what industry you’re in and where you’re starting out, all it takes is a little planning and strategy to get the ball rolling today.

‘[Green Computing] is an idea that can save your business money and improve its standing with your community’

1 Products certified by EPA’s ENERGY STAR program will help reduce energy consumption 8

July 2015


GREENER COMPUTING

1) Strengthen your power management strategies Go on the offense against energy waste by seeking out technology that is known to be more efficient. ENERGY STAR is a voluntary program sponsored by the U.S. Environmental Protection Agency (EPA) which promotes energy efficiency, and the program’s “Low Carbon IT” campaign is dedicated to helping businesses from HP to AT&T reduce their energy costs and run their IT programs more sustainably. According to the program, the single most important thing that a business can do right now to start saving energy is turning off computers or sending them into standby or sleep mode when not in use. According to ENERGY STAR, simply activating system standby or hibernating features can save an office $50 or more per computer.

2) Invest in a Greener Brand of Technology Of course equipment that only saves money and energy while it’s asleep isn’t truly efficient. A business invested in green computing also needs equipment that is fully invested in being

Uninterruptible Power Supplies (UPS)

2

as green as possible. ENERGY STAR offers several recommendations for computers and monitors that meet the program’s specifications regarding TEC (typical energy consumption) levels and power management settings. But don’t stop at computers, either— smart peripherals like surge protectors and uninterruptable power supplies (UPS) can also play a role in keeping your power usage well managed. 9


CLEANTECH

3) Think Bigger and Look to the Cloud Beyond improving your green status within your office cubicles, there is also a bigger picture to consider. Data storage is an increasing concern, and efficient data storage is rapidly coming into focus as a way to reduce energy waste and emissions. When acquiring servers, look for newer models that better regulate temperature and power management in order to use energy more efficiently. These newer models may be more expensive up front, but the energy savings over time can be substantial. Another option involves taking your data to the cloud. There is considerable debate over whether the cloud is green per se, but the technology’s ability to help individual businesses reduce active data center space and thereby increase efficiency

‘Data storage is an increasing concern, and efficient data storage is rapidly coming into focus as a way to reduce energy waste and emissions’ 10

July 2015

3 Large companies who adopt cloud computing could see annual energy savings of $12.3 billion by 2020


GREENER COMPUTING

is at the moment undeniable. As Forbes recently reported, a report by the Carbon Disclosure Project estimated that large companies who adopt cloud computing could see annual energy savings of $12.3 billion by 2020; another study by Accenture found that businesses making effective use of cloud applications could cut their energy consumption up to 90 percent.

4) Dispose of Your Hardware at Appropriate E-Waste Sites Whether it’s computers and printers or tablets and POS systems, there comes a time in every company’s life when hardware grows obsolete and must be replaced with newer models. When this time comes, ensuring that the hardware being replaced is disposed of properly is a top priority. Throwing old computers and other hardware out with the rest of the office garbage can lead to hazardous components like mercury and cadmium leaking into oceans or soil and groundwater. Furthermore, many materials used to make computers like aluminum and plastic can be recycled if the hardware is sent to the right place and given the opportunity. 11


CLEANTECH Most major cities have designated programs and drop-off points specifically for e-waste disposal and recycling. Take the time to find the resources available to you in your area. Some even have pick-up services that will come directly to your facilities to take unwanted hardware off your hands.

‘Ensuring that the hardware being replaced is disposed of properly is a top priority’

4


GREENER COMPUTING

5

5) Encourage Employee Telecommuting Greenhouse gas emissions are a critical contributor to climate change, yet few businesses consider the gas used to transport employees to and from work each day as part of their environmental responsibility. But by smartly taking advantage of the myriad telecommuting tools we now have at our disposal, a lot of those

gas emissions can be prevented. Encourage your employees to use more work-from-home days from time to time, utilizing software like Skype for teleconferencing and remote access to tap into hardware when needed. Not that every day should be a WFH day—everyone loves a full and bustling office, and too much time apart can be counterproductive—but an increase can be as good for the environment as it is for morale. 13


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

The Not-So-Wasteful Role Of The WTE Market

WTE PLANTS BEGAN to play a major role in energy production in the 1970s and continue to help minimize environmental pollution; however, economic, environmental and social factors have the WTE market in a dubious state. The MSW Issue Global awareness and technological 14

July 2015

improvements have spurred rapid growth in the global WTE market; however, hundreds of millions of tons of waste continue to occupy landfills. Experts estimate that each ton of landfill waste equates to a 1.3+ metric ton increase in carbon dioxide (CO2) emissions. Rapid urban development, industrialization, culture and climate all impact levels of MSW produced.


There tends to be a clear correlation between economic development and MSW levels—urban regions, which equate to more than half of the global population, are therefore known for high MSW generation rates. A 2012 World Bank study predicts MSW growth to outpace urbanization. Current MSW production sits at roughly 1.3 billion metric tons per

year. In 2025, this number is expected to nearly double to 2.2 billion tons per year, and again to 4.2 billion by 2050. North America and Europe have the highest MSW generation rates and will continue to do so for many years due to rapid population growth and economic production. However, emerging nations have the highest MSW growth rates as they 15


WA S T E M A N A G E M E N T imitate the economies of developed nations. Bringing WTE plants to these markets remains a challenge. So how can it be managed? The concept of WTE treats MSW not as a waste, but as a valuable resource and energy source. From 2011 to 2012 alone, capital and corporate investment in WTE projects nearly doubled. Unlike other energy sources, WTE is sold to plant operators at negative cost, eliminating material expenses. Although the industry has made great strides in efficiency since its inception, many challenges remain. New research aims to improve processing of mixed-material MSW, improve the design of processing plants, and further reduce plant emissions. The Waste Incineration Process WTE plants can process waste energy in several ways: • Production and distribution via grid systems • Heat generation and distribution • Biofuel extraction and refining Worldwide WTE plants mainly operate using a hybrid of heat and power plants, better known as incineration. The process and controls vary based 16

July 2015

Industrial metallic scrap ready to be r on the type of waste, cost limitations, and local temperature. A typical incineration process is as follows: 1. Waste enters a bunker, is extracted and processed on a mobile grate. 2. The waste may undergo treatment depending on its makeup and incineration method. 3. Flue gases cycle heat in a boiler system to produce energy. The boiler type depends on the desired use of the converted energy.


T H E N O T- S O - W A S T E F U L R O L E O F T H E W T E M A R K E T

recycled 4. A turbine powers the incineration process, aided by a heat exchanger. Costs and Efficiencies Operation costs for WTE plants are lower than nearly any other energy production method. WTE plants profit from ‘purchasing’ waste at negative cost and distributing power. Initial construction costs may be high or low depending on plant size. More complex and specialized mechanisms

Oil palm renewable energy biogas plant for incineration can also drive up capital costs. However, maintenance costs are generally low, and overall costs are generally significantly outweighed by revenue and environmental benefits. Environmental Benefits WTE plants help reduce landfill waste, slowing down global warming from the resulting greenhouse gases. The three main categories of waste emissions are: mercury emissions, 17


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

Aerial view of the Municipal wastewater treatment plant in Miami, Florida. landfill gaseous emissions, and volatile organic compounds. The conversion process eliminates these emissions while producing minimal emissions as a result of operation. A typical modern landfill undergoes regularly treatment for solid and liquid waste products; however, chemical breakdowns and volume shifts of the landfill waste can cause harmful effects that may last for tens or hundreds of years. This can result in contamination of lakes, 18

July 2015

oceans, soil and deterioration in plant and animal life. When these factors are considered, it is clear that the benefits of WTE plants greatly outweigh the minimal amounts of emissions. Do WTE Plants Emit Harmful Chemicals? As early as the late 1980s, the U.S. and several European nations recognized the inefficiencies of WTE plants, particularly pertaining to mercury and dioxin emissions. Roughly


T H E N O T- S O - W A S T E F U L R O L E O F T H E W T E M A R K E T

a decade later, these nations invested billions to equip WTE incinerators with pollution control mechanisms. Today, modern WTE plants emit minimal byproducts while helping reduce greenhouse gas emissions. The U.S. Environmental Protection Agency (EPA) reports that WTE-derived electricity produces fewer emissions than nearly any other electricity generation method. Market Trends and Outlook The WTE industry showed significant global growth in the past decade, increasing roughly 5 percent per year beginning in 2008. Limited landfill space, increasing demand, population growth, and energy concerns, and environmental awareness all contribute to this growth. Global environmental policies have also encouraged WTE growth, particularly on the European

As global awareness spreads and WTE technology enters developing markets, we can begin to see real environmental change’

front. In conjunction with green energy initiatives, WTE remains one of the foremost strategies in minimizing waste and carbon emissions. The most promising area for WTE – and also the most challenging – is the Asia-Pacific. Rapid economic growth and an ever-improving standard of living have caused MSW generation rates to skyrocket in China and India. Many Asian nations rely heavily on coal for energy production. Compared to other fuel sources, coal combustion releases the highest amounts of carbon emissions. As such, WTE development in these regions can significantly reduce pollutants and pave the way for other clean alternative energy solutions. WTE growth in Europe continues to grow rapidly, with policymakers encouraging new and improved WTE initiatives. The freedom in this market allows new companies to enter, control prices, encourage innovation and bypass limitations of monopolized energy production. As global awareness spreads and WTE technology enters developing markets, we can begin to see real environmental change. Companies, organizations, and citizens can all play a role in spreading the word. 19


TOP 10

GLOBAL

Solar Farms Written by: Jennifer White

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July 2015


G L O B A L S O L A R FA R M S

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TOP 10

From a 20,000-acre planned plant to a project that generates power for an entire county, these solar farms are making a big impact in every way possible. Solar farms are popping up all over the globe, looking more like

10

JASPER PV PROJECT

Completed in 2014, the Jasper PV Project uses PV technology to produce 180,000 megawatthours of energy each year and

Jasper PV Project in South Africa (Photo credit: SolarReserves)

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July 2015

solar cities as they command acres and acres of land. These are the 10 largest solar farms in the world, some of which are currently in development and others that are fully operational today.

supply power to 80,000 homes. With more than 325,000 panels, the Jasper Project is currently the largest solar plant in South Africa, and has a 20-year, governmentsupported PPA Compa ny: with Eskom. Solar Reserv Locatio e n South A : frica Capaci t y: 96 MW


G L O B A L S O L A R FA R M S

09

AMANECER SOLAR CAP PLANT

Spread across 250 acres in the Atacama Desert in Copiapo, Amanecer is the largest photovoltaic solar plant in Latin America. Its 310,000 solar panels Amanecer Solar CAP Plant in Chile

are able to produce power for up to 125,000 households each year. The plant was constructed under a 20-year CFD agreement with CAP Group, the biggest steel producer in the country, and will provide power for CAP’s local mining projects as well.

Compa ny: S u n Ed i s Locatio on n: Chile Capaci t y: 100 MW

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TOP 10

Redstone Solar Thermal Power Plant in South Africa (Photo credit: SolarReserves)

08

REDSTONE SOLAR THERMAL POWER PLANT

Solar power produced at Redstone will use molten salt energy storage technology, which stores 12 hours worth of solar energy, the equivalent needed to 24

July 2015

Compa n SolarRe y: serv Locatio e n South A : frica Capaci t y: 100 MW

provide power to 200,000 homes during peak periods. The estimated production of 480,000 megawatt hours of energy per year is twice that of a similar-sized PV project.


G L O B A L S O L A R FA R M S

07

NZEMA SOLAR PARK

After the Ghanaian government passed ruled to increase efforts made in country’s renewable energy sector, plans were made to construct Nzema, which is set to be the sixth largest solar farm in the world with 630,000 PV panels. By tapping into a power transmission line running alongside it, Nzema will connect Ghana to the Ivory Coast, Togo, Benin and Nigeria.

Compa ny Mere Po : wer Nzema Limited Locatio n: Ghan a Capaci t y: 155 MW

Nzema Solar Park in Ghana (Photo credit: PV Magazine)

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TOP 10

Setouchi Kirei Solar Power Plant in Japan (Photo credit: GE Energy Financial Services)

06

SETOUCHI KIREI SOLAR POWER PLANT

Being built on 1,120 acres on the former Kinkai salt field in Setouchi City, Okayama Prefecture, the estimated $1.1 billion project has received nearly $900 million in loans from banks. This is the 26

July 2015

Compa ny: Chugok u Electr ic Power C o. Locatio n: Japa n Capaci t y: 231 MW

largest amount of debt ever raised in Japan for a clean power project, which is fitting for a project expected to be the largest solar farm in Japan when completed in 2019. Power generated will be provided to Chugoku Electric Power Company under a 20-year PPA.


G L O B A L S O L A R FA R M S

05

AGUA CALIENTE

The 2,400-acre facility in Arizona is capable of powering 103,000 homes at peak loads. The farm was funded in part by a loan from the U.S. Department of Energy, and the power generated Agua Caliente in the U.S.

is sold to Pacific Gas & Electric, California, under a 25-year PPA. BHE Renewables estimates that electricity generated from Agua Caliente displaces 230,000 metric tons of carbon dioxide each year, the equivalent of taking 43,500 cars off the road. Compa ny: BHE/NR Locatio G n: USA Capaci t y: 290 MW

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TOP 10

Compa ny: BH

E/Brigh tSource

Ivanpah in the U.S.

04

IVANPAH

The Ivanpah Solar Electric Generating System is located 3,500 acres in California’s Mojave Desert. As the largest solar thermal power tower system in 28

July 2015

Locatio n: USA Capaci t y: 392 MW

the world, Ivanpah produces enough clean energy to supply power to 140,000 homes. Solar technology used at Ivanpah will generate electricity free of millions of tons of carbon dioxide and other pollutants—the equivalent of taking 70,000 cars off the road.


G L O B A L S O L A R FA R M S

03

SOLAR STAR PROJECTS

Star Projects are located in Kern and Los Angeles Counties and will have over 1.7 million solar panels when completed in late

Solar Star Projects in the U.S. (Photo credit: SunPower)

2015, providing power to 255,000 homes. Electricity generated at these farms displaces more than 570,000 tons of carbon dioxide per year—the equivalent of taking nearly 108,000 cars off the road annually, or 2 million over a 20-year period. Compa ny: BHE/Su nP Locatio ower n: USA Capaci t y: 579 MW

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TOP 10

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July 2015


G L O B A L S O L A R FA R M S

Topaz Solar Farm in the U.S.

02

TOPAZ SOLAR FARM

The first solar plant in the United States to be over 500 megawatts, the Topaz farm cost $2.5 billion to build. With nine million solar panels across 9.5 square miles, the Topaz farm provides power to 160,000 homes throughout San Luis Obispo County. BHE Renewables estimates the electricity generated at the farm displaces 407,000 metric tons of carbon dioxide per year, the equivalent of taking 77,000 cars off the road. Compa ny:

BHE/ M id America n Solar Lo

cation: USA Capaci t y: 580 MW

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TOP 10

Compa ny:

BHE/ M id America n Soalr

Locatio n: India Capaci t y: 4000 M W

01

SAMBHAR LAKE

What is set to become India’s largest solar project to date, Sambhar Lake is expected to generate eight times more power than the largest solar farms in operation today. The estimated $4 32

July 2015

billion project will be built outside Jaipur, the Rajasthan capital, on 20,000 acres of governmentowned land. A.N. Srivastava, director of the country’s Ministry of New and Renewable Energy, said in an interview that this project would reduce the country’s carbon footprint by over 4 million


G L O B A L S O L A R FA R M S

Rendering of Sambhar Lake in India (Photo credit: The Guardian) 33


LANES GROUP: Britain’s

Technical Drainage Leader


Combining the latest technology with years of crosssector experience, the group is responsible for some of the most important waste water contracts in the UK Written by: Nye Longman Produced by: James Pepper 35


LANES GROUP

L

anes Group has been entrusted with the impressive and daunting task of supplying Thames Water’s waste water infrastructure with repair and maintenance services. This contract makes the company solely responsible for the waste management of roughly 14 million homes or 25 percent of the UK’s population. Living up to this challenge has been a great honour for Lanes and its Utilities MD, Conrad Ashby; the work of the past 12 months stands as a testament to the efficacy of focusing on both customers and workforce simultaneously. Operations On the Thames contract alone, Lanes has more than 400 vehicles deployed, with around 270 equipped for specialist drainage applications; on an average day the company completes upwards of 1,000 jobs, as well as an annual average of 600 emergency daily callouts. Unbeknown to many, Thames Water’s area covers much of the South East, in and around the Thames Valley and Greater London which has some 140,000 kilometres of underground sewers and drains.

Lanes is a national drainage leader, with contracts from Aberdeen to Plymouth

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July 2015

A national drainage leader Ashby highlighted that, alongside its utilities contracts, Lanes Group provides services for Vinci Facilities, Integral FM, Mitie Property Solutions and Network Rail, in addition to several other water authorities, national supermarkets and retail chains. Lanes Group’s Reline Division


EUROPE

takes on some of the most challenging sewer rehabilitation projects in the UK. Its rail division has a major contract with London Underground to provide maintenance and repair services for everything from bridges and structures to vegetation control and coin counters. Lanes Utilities has had to address what Ashby called: “A paradigm shift in the water industry, where we are seeing demanding customer challenges and the opening up of the market by the regulator OFWAT, which includes the prospect of increased competition from other companies.” In response to this, the company has rolled out investments in excess of £10 million to strengthen its specialist fleet; it also follows Kaizen principles to maintain its ISO:9001, 14001, 18001 and 22301 accreditations. Talent Management Ashby noted that playing a major part in the smooth running of the country’s capital city can be a challenging and potentially stressful responsibility for his teams. He said: “We travel roughly 6.5 million kilometres each year, so we’ve invested a lot of time and energy in making our employees’ lives easier.” Over the past year, Lanes has invested not only in its fleet but also over £900,000 to provide training, tools and equipment for its employees, alongside a significant investment in its staff wellbeing project. Ashby said: “We’ve put a lot of time and effort into understanding workplace frustrations

‘Lanes Group has shown that it can be a jack of all trades while mastering all of them: its dedicated focus on both the needs of customers, and its expanding workforce, has produced a balanced and powerful model for continued growth’

w w w. l a n e s f o r d r a i n s . c o . u k

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Helping to keep your project on track. Whether you’re a developer, a main contractor or a subcontractor, you will be aware of the need to possess suitable insurance cover for your contracting projects. By choosing the Henderson Insurance Broking Group, you can be assured of the commitment of our highly experienced teams operating across the Construction and Utilities industries. Our specialist divisions can organise a number of contracting related covers such as Liability, Contract Works, Plant, Bonds and Risk Management through to general cover for your office. Call 0113 393 6362 to find out how your business can benefit from working in partnership with the Henderson Insurance Broking Group. Henderson Insurance Broking Group Trueman House, Capitol Park Leeds, LS27 0TS T: 0113 393 6300 E: info@hibl.co.uk Authorised and regulated by the Financial Conduct Authority.

www.hibl.co.uk

A CONTRACTOR WITH A DIFFERENCE

INSURANCE BROKING GROUP

FM CONWAY IS A LEADING INFRASTRUCTURE SERVICES COMPANY OPERATING IN TRANSPORTATION, THE BUILT ENVIRONMENT AND PUBLIC REALM. We have years of experience working with utilities, contractors and local authorities to map drains and sewers, record new assets, plan works and cleanse systems. Our vehicles have the latest technology to undertake complex projects, such as off-road surveys and specialist ‘no dig’ operations, as well as delivering exceptional quality in our routine works. We directly employ our own fully-trained staff to give us full control over the service we provide and, with our extensive fleet, we’ll be expanding on the one million gullies we clean each year.

For more information on our cleansing, surveying and drain waste recycling services: Please call 0844 880 6204, visit www.fmconway.co.uk or follow us on @FMConwayLtd


LANES GROUP

EUROPE

Cityflex in use, Slough - UK

and exploring the more subtle elements of health and safety, including stress management and developing personal resilience.” The company is serious about this attitude shift, already accruing 9,000 person hours of training in the past year. Ashby said: “We have brought in specific management capabilities to deliver 6 Sigma Black Belt support to help us drive our initiatives and continual improvement using incremental changes.” Lanes also incentivises its workforce: on top of a competitive salary, employees earn bonuses every time they successfully deliver excellent service, as evidenced by feedback from customers; in additon its top quarter of drivers are entered into a monthly prize draw. Underpinning its mutual dedication to its customers and

‘Lanes has profited from the manifold benefits that an often seemingly simple innovation can produce’

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LANES GROUP

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July 2015


EUROPE

employees is its simplified Essential Standards operational handbook, which has already won an award from Construction News for its innovative format of communication through illustrations; it has even been adopted by some of Lanes’ clients. Ashby also noted that Lanes is keen to actively support and develop its staff at all levels, which has enabled members to progress to senior management positions. Ashby said: “We have a bespoke management course for all front line managers. We put them through MSTS and IOSH training, as well as providing them with training from the Institute of Leadership and Management.” Competitive edge Lanes has profited from developing seemingly simple innovations and IT functionality. Its adoption of app-based technology has not only saved countless paper documents, but also saved time and effort, while enabling the business to remain transparent through the extensive use of photographic images. Ashby said: “We do roughly 320,000 jobs a year as part of our Thames contract, so instead of having a paper risk assessment our app records the risks and the mitigating actions undertaken, evidenced through the use of date and time stamped photographs.” Backing this up, he said: “We take over 4.5 million images every year in support of the company’s ongoing customer service and H&S measures. It’s an innovation

“We do roughly 320,000 jobs a year as part of our Thames Water contract, so instead of having a paper risk assessment we have an app which records risks mitigation and proves this with a photograph” – Conrad Ashby, Framework Director at Lanes Group

w w w. l a n e s f o r d r a i n s . c o . u k

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Supplier of call centre communications solutions to Lanes Group PLC on behalf of Thames Water

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LANES GROUP

EUROPE

Jetvac in operation

that has resulted in Lanes Utilities being selected, again, as a finalist in the 2015 Construction News Awards, being announced in June.” Efficiency is not a merely abstract concept for Lanes, which relies daily on the smooth running of its fleet of hundreds of vehicles, Ashby said: “We have invested in advanced vehicle tracking units which will help our engineers drive smarter through real time feedback on driving behaviours; since implementation we have seen an improvement of 15 percent in our fuel costs.” Ashby also noted how the company makes use of its diverse sector coverage to gain a broad competitive advantage. He said: “One of the beauties of a diverse customer and business base is that we have a lot of experiences that can be shared within the

‘Having been given the not so enviable task of removing London’s recent ‘fatberg,’ the company using its strong partnership with Thames Water in order to educate households on the correct disposal of fat, oils, and grease’

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LANES GROUP

Lanes has seen an improvement of 15 percent in fuel costs group; we learn from our experiences and improve through sharing best practice.” Corporate Responsibility Lanes Utilities often works with Thames Water to remove sewer ‘fatbergs’ (great masses of congealed fat and debris) and is now working to educate households and businesses on the correct grease disposal. Having hundreds of thousands of drainage jobs under its belt, Lanes is best placed in its sector to drive change in the industry, Ashby said: “Lanes cares; we always want to deliver for our clients and customers and we are not scared of trying things differently.” The company was one of the first in its space to implement ‘no dig’ solutions; using cured-inplace pipe (CIPP) techniques, Lanes can renovate a damaged drainage pipe without excavation 44

July 2015


EUROPE

by creating a new pipe within the existing one. Ashby explained: “Rather than excavating and cutting up someone’s garden or ripping up the highway, we have the technology to quickly offer our clients proactive solutions.” These liners refurbish the asset in a cost-effective and more carbon efficient way than pipe replacement. They also have an effective operational lifetime of nearly a century, which means that communities have utility solutions that are built to last. In 2015, this same spirit of innovation has led the Lanes Rail Division to perfect a vacuumation cleaning system that promises to revolutionise rail track drainage maintenance. Lanes Group has taken extensive measures to reduce its impact on communities and the environment. It has become the UK’s largest user of specialist recycler jet vacuumation tankers, which use less water and fuel. In May, Lanes Utilities became the first drainage contractor to deploy acoustic sensing technology to survey sewers, an innovation that promises to make sewers more efficient and reduce pollution. It is also a leader in its sector in using hybrid vehicles. Lanes Group has shown that it can be a jack of all trades while mastering all of them: its dedicated focus on both the needs of customers, including the 14 million it looks after for Thames Water, and its expanding workforce, has produced a balanced and powerful model for continued growth.

Company Information INDUSTRY

EUROPE HEADQUARTERS

Leeds FOUNDED

1992 EMPLOYEES

1208 REVENUE

£104m PRODUCTS/ SERVICES

Utility wastewater and drainage sector

w w w. l a n e s f o r d r a i n s . c o . u k

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C & F GREEN ENERGY:

World-Class Wind Turbine Solutions Written by: Abigail Phillips Produced by: Richard Thomas

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C & F GREEN ENERGY

CFEG understands the importance of quality control, positive management and an allinclusive supply chain

48

S

ince 2006 C&F Green Energy (CFGE) has been striving to find solutions to provide more powerful, yet safer, wind energy solutions for residential, commercial and agricultural applications. With a background rooted in precision manufacturing, C&F was well placed from the start to design innovative wind turbines that would combine unrivalled performance and power with clean aesthetics and reliability. With this in mind the company has assembled a world class team of industrial design experts in this field to deliver solutions based on innovation and engineering excellence. The group attributes its success to unrivalled levels of workmanship quality, streamlined manufacturing processes and continual product design and reliability improvement. Since its inception, the company has developed an innovative range of small to medium-sized


EUROPE

turbines that incorporate the same advanced technologies that are used in Mega-Watt sized machines. Leveraging its expertise in manufacturing and design, not to mention its global reach, C&F Green Energy is in a unique position in being able to offer this advanced technology at very competitive prices. “Our commitment to customer service and our confidence in our products are evident in the fact that all customer contracts will be directly with C&F Green Energy and all warranties will be carried by us,” explained Enda Meaney, C&F Quality Manager. “This includes the market leading warranty that is available for five years. “Our mission is to make C&F Green Energy the global leader in small and medium sized generation. We build what we firmly believe to be the best wind turbines in the world.”

Enda Meaney, Quality Manager

Continuous improvement C&F Green Energy’s mission statement

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C & F GREEN ENERGY

“Our mission is to make C&F Green Energy the global leader in small and medium sized generation. We build what we firmly believe to be the best wind turbines in the world” – Enda Meaney , Quality Manager

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demonstrates its overriding aim to become a world leading manufacturer of small to medium size wind turbines. In line with this vision, the company also strives to make wind energy affordable and accessible to everyone. “Whether you are an individual interested in harnessing wind power for your sole consumption or an investor interested in making profit from generation of power for general availability on the national grid, we have an affordable solution to satisfy that need,” said Meaney. “To compliment this strategy, our Quality Policy states that we will undertake to conduct our business in a manner which endeavours to protect our environment, the health and safety of our employees and to continuously improve the quality of our products and services to our customers.” Continuous improvement is critically important to C&F Green Energy, in fact they truly believe their commitment to quality underpins the entire operation. As Meaney explained: “My aim is to equip C&F Green Energy not just for the sustainment of high quality standards but to meet the demands of global business growth and the ever increasing customer expectations that come with an innovative and evolutionary industry such as the renewables wind energy sector, which we are currently leaders in.” In terms of business strategies, CFGE has leveraged on the well-established processes and methodologies used by the entire C&F

100KW Nacelle

60KW Dispatch

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C & F GREEN ENERGY

“The most attractive aspect of working with CFGE is the cutting edge technology and the continuous demand for change and improvement” – Enda Meaney, Quality Manager

Production Line 1 (11-20KW)

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Group family of companies and facilities. “We a global footprint of businesses strategically married through mergers and acquisitions since our establishment as a tooling manufacturer in 1998. These businesses align well in terms of supply chain continuity and economy of scales in purchasing power and industry expertise,” said Meaney. People management CFGE understands that its quality goals are not achievable without a strong team of employees working behind the scenes. “The renewables energy sector is both a growing sector and a hugely sought after sector in terms of attracting highly skilled and valuable resources. This is an environment CFGE is enjoying at present as we equip our business to meet growth demands. The most attractive aspect of working with CFGE is the cutting


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edge technology and the continuous demand for change and improvement,” said Meaney. “What you learn and experience in six months in C&F is equivalent to 18 months experience in most other industry sectors. This is due mainly to the fast evolving technology and the variety of exposures an employee has throughout their daily activities. We are a tight-knit community that depends on openness, cross-functional cooperation and an attitude to succeed. Behind every wind turbine is a slip stream of energised people.” CFGE use a combination of both owned and sub-contracted service and repair crews throughout Ireland and the UK, European and Global markets. This allows the business to quickly penetrate its customer base in the event of either routine service calls or breakdown and

50KW In Production

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C & F GREEN ENERGY

Nacell Installation

support requirements. As Meaney highlighted, this does however also provide a challenge in terms of keeping crews up to speed on latest process and procedural advances. “To meet this challenge, and as we expand our crew base, we are currently embarked on a global crew re-training program which is being project managed in-house in Galway. Both current and new crew teams are being put through end-to-end training programs from tower and turbine installation, through service and maintenance, to electrical installations and commissioning, including health and safety and quality fundamental principles.

www.eeltd.co.uk

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Reach

Engage Monetize

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7 Silverwood Industrial Area, Silverwood Road, Lurgan, Co Armagh, BT66 6LN Tel: +44(0) 2838 330 800 Email: sales@eeltd.co.uk

ISO 9001

Regis tered

Quali ty M anagement

015


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Complementing this, we are developing a series of video based training aids that we can remotely distribute to all our crew members.� Supply chain management One of the company’s USPs is the fact that it manages all aspects of the project in-house, making them 100 percent accountable and thus giving customers complete peace of mind. CFGE has a network of road crews available to transport turbines and tower structures to any site in Europe and beyond. In some cases, access to a customer site may be challenging and require specialised machinery to ensure an efficient installation, which often can be hampered by inclement weather conditions. Advance planning and knowledge of the local environment is critical in determining installation requirements and this is achieved thorough site surveying as part of the contract. Much emphasis is placed on the secure transportation of the product so that it reaches the customer site intact and free of damage. The installation process is carried out by teams of British, Irish and International crews. “These are teams of specialised installers from mechanical to electrical engineers, equipped and trained to build tower structures, install turbine nacelles, connect to electrical controllers and commission the installation in full for the customer. Key to providing a good quality service to our customer base is having crews geographically and strategically placed to

60KW turbine

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C & F GREEN ENERGY

20KW Nacelles for Delivery

ensure prompt response times,” said Meaney. “One of the inherent benefits the C&F Group can offer its Green Energy subsidiary is the entity of self-sufficiency of material supply through its chain of metal and tooling businesses. Many of our parts, from raw steel to precision engineered parts come from within our own supply chain, giving us complete control over costs, quality and time,” he added. Technology A key strength of CFGE is the ability to produce innovative designs that ensure its products are at the cutting edge of the wind energy industry. The business is continuously producing new designs that will ensure CFGE has the best turbines and will remain as leaders in the market space. “This industry is all about efficiency of conversion of energy from one form (wind)

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to another (electricity) at the least set-up and operational expense possible,” says Meaney. “To achieve this, we are constantly innovating on design and quality. An example of this is a current initiative being project managed in Galway whereby we are conducting in-depth reliability studies and design of experiments (DOE) on our existing product ranges in order to improve long term reliability of mechanical parts and sub-assemblies, which in turn, will lead to overall turbine reliability improvement. We are in partnership with a leading reliability statistician to conduct these trials over the coming months which we hope will yield product improvement and also generate inhouse expertise in this specialised area.” “C&F Green Energy have designed a family of turbines, which gives us great scope in entering the global markets due to our unique design and product range. We are the only global wind turbine manufacture that offers this option in the small to medium product range. With these choices of turbine sizes, this gives us and our customers the possibilities to tailor their development” said Paul Fitzpatrick, Global Business Development. CFGE is focused on developing innovative solutions for the world and realises that a mission this ambitious needs to be underpinned with good business practice. From continuous improvement to investment in technology, people management to a robust supply chain, CFEG is ensuring it is well placed to triumph now and in the future.

Company Information INDUSTRY

Renewable Energy HEADQUARTERS

Ireland FOUNDED

2006 EMPLOYEES

130 REVENUE

€139m (Turnover) PRODUCTS/ SERVICES

Production and distribution of wind turbines with manufacturing locations on 4 continents

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SUSTAIN

industrial energy as an Empresa ElĂŠctrica de Guatemala, S. A., has defied its dependence on oil by buying power and energy in open bids and allocating generously, renewable energy sources for the well-being of Guatemalans, efficiency in costs and environmental impact.

Written by: Rebecca Castrejon, Editor Produced by: Jassen Pintado, Director of Projects at WDM Group Interviewee: Jorge Ramon Alonso Duarte, EEGSA General Manager

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NABLE

an innovative model

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E M P R E S A E L É C T R I C A D E G U AT E M A L A S . A . ( E E G S A ) Differentiated by its Evolution

Growth is expected based on the Smart Grid to digitalize communication and between consumer EEGSA

On May, 2015, EEGSA

On October 10, 1894, the license to the Michatoya River waterfalls was given to Don Enrique Neutze, who capitalized on this resource to jumpstart the production of energy for locations like Antigua Guatemala, Chimaltanengo, Amatitlan, Palin and Escuintla. Months later he’d incorporate Empresa Electrica de Guatemala, LLC. with the entrepreneurs Herman Hoepfner, Federico Gerlach, Víctor Matheu, Antonio de Aguirre and Juan Francisco Aguirre. Back then the company generated energy. Today, more than 120 years after its founding, EEGSA Corporation is part of Grupo EPM (Medellin Public Companies), which holds an 80 percent controlling share of stock in the company. The organization serves three major states: Guatemala, Escuintla and Sacatepequez.

launched a 21 percent reduction in the price of electricity in the states of Guatemala, Escuintla and Sacatequez

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Today EEGSA LLC. has four more companies in different markets. They are: 1. COMEGSA: Guatemala Electricity Vendor is the main vendor of electricity in the Guatemalan market and one of the biggest in Central America. 2. ENERGICA: Private firm which builds and maintains electric transmission, and distribution, networks. 3. TRELEC: Central American Electric Transporter LLC. is an organization that


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provides solutions for the transport of heavy machinery and needed electricity. It also provides sustained maintenance of facilities. 4. AMESA: Storage and Handling of Electric Materials, LLC. is a seller of electric equipment and materials. “The company has been pioneering from the beginning and was created by business visionaries a mere four years after the first company for electric energy distribution was founded in France,” said General Manager of EEGSA Jorge Ramon Alonso. The executive has been part of this energy organization for more than 20 years (serving two separate times), handling expansion and acquisitions. This May 2015, EEGSA reached a major milestone by reducing its price for electricity by 21 percent thanks to transparency in recent

Key People

Jorge Ramón Alonso Duarte EEGSA General Manager Alonso Duarte began his tenure at EEGSA in 1983, working in weights and measures. Later he became assistant manager. In 1990 he decided to pursue his career with another company, joining the distributor of fuel and of the company in charge of refrigeration for PepsiCo. He was general manager. He returned to EEGSA in 1996 as assistant manager where his main job was to finish selling off the energy plants and the action In 1997. Alonso Duarte was general manager at EEGSA after proving his talent at managing activities that had a profound impact on the company, he thinks Since September 11, 1998, Iberdrola Energy, S.A. (bidwinning Spanish firm) he took over all EEGSA management. Simultaneously, Alonso Duarte changed positions, starting as Manager of Executive Issues, accompanying the main administration in this phase of transition. In 2003, Alonso Duuarte began working as commercial and operations manager; until becoming general manager again in 2008.

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EEGSA Human Resources

“An electric company with more than 1 million clients and which is operated by 550 direct employees, is a clear example of operational efficiency and performance” – Jorge Ramón Alonso Duarte, General Manager of EEGSA

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bids and reducing the cost of producing electricity. Furthermore, Guatemala doubled its consumption of electricity when it went from 4,595.73 gigawatts/hour (GWh) to 8,995.04 GWh in 2014. Due to this, EEGSA is increasing its efforts to expand and to increase productivity. These are short term goals. Leadership Factors EEGSA is a clear example of sustainable innovation. So much so that different organizations in the region are studying the electricity company to reproduce its dynamics and projects. Among its major differentiators those that stand out are:


SECTOR

Operating efficiency: Its 550 collaborators operate the distributed electricity to more than 1,150,000 consumers.

1. First company to generate electric energy in Guatemala, even though since the 1997 General Electricity Law, it is only a distributor. It no longer produces. 2. Implementation of best business practices based on the models of global companies l ike Iberdrola and General Electric

AMESA: Storage and handling of electric materials, S.A.

3. With the help of Electric Bond & Share Company (EBASCO) they designed and built their network according to American standards. “This has been one of the key factors for the operation, maintenance, growth and expansion of the electric grid under American standards because w w w. e e g s a . c o m

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E M P R E S A E L É C T R I C A D E G U AT E M A L A S . A . ( E E G S A )

“EEGSA is the main vehicle and ally in the development of this types of a sustainable project” – JJorge Ramón Alonso Duarte, General Manager of EEGSA

their technical criteria have been part of the success and the quality supply indexes. 4. The benefits an LLC, for its balance as a public company (paying dividends to the State of Guatemala) and as an independent organization which simultaneously stands out due to its service towards clients. 5. Subsidiary of the EPM Group which has supported sustainable projects helping to make them practical Industrial Energy Sustainability EEGSA continues increasing its social and


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sustainable initiatives which range from the building of the Liniero Technical School to the addition of electric vehicles to its fleet to the introduction of biofuel through the project Reciclaceite. “The company has always been committed to caring for the environment,” assured Alonso Duarte. “As we grow and expand the electric grid, sometimes it’s necessary to remove branches from trees, which is why we committed to reforestation,” he added.

The building of the Escuela Técnica de Linieros, is part of its social initiatives

Among its new sustainability targets is Project Reciclaceite, carried out with Guatemala city hall, the Organizations of American States (OAS), Valle de Guatemala university, CANELLA LLC and the Guatemalan Association of Renewable Fuel and Solar Foundation. EEGSA invested $25 million USD in this pilot program which seeks to use dumped oil from six markets as the raw material to turn it into biodiesel and renewable fuel.

EEGSA headquarters

The second important effort is the acquisition of an electric fleet which will mean a vehicle change in the transportation operations of EEGSA. “Now that we have an energy headquarters, which has a high content of renewables, we believe it’s necessary to act with integrity with the use of fuels that are gentle to the environment when we have the vehicular mobility driven by electricity since it’s less contaminating than the w w w. e e g s a . c o m

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(EEGSA)

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fossil fuel,” stated Alonso Duarte after talking about the fuel mix B25 (25 percent biodiesel, 75 percent fossil diesel.) With these green initiatives, EEGSA is an example in Latin America, since it’s not just reducing pollution in the country, but it’s backing local industry and reducing the price of electricity thanks to cost efficiency. Its sustainability

More than Partners

efforts range from the introduction of electric

Under Grupo EPM’s new mandate, EEGSA hopes to consolidate its logistics by digitalizing all its long-distance operations, consolidating up to 80 percent of needs electronically.

vehicles to its fleets. And the introduction of biofuels with the Reciclaceite project, among others

“With suppliers we want to consolidate the orders of electric materials for all of the companies in the corporation, which have different sites and dates of delivery. There are also variations on the specifications of materials due to the regulatory demands of each country,” said Alonso Duarte. Another stand out partnership involves Grupo Onyx, one of the most important telecommunications companies in Guatemala, with an electricity generation project based on photovoltaic solar energy under a 15 year contract.

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E M P R E S A E L É C T R I C A D E G U AT E M A L A S . A . ( E E G S A ) Consolidating EEGSA Due to the fact that the electricity company services six percent of the nation, 70 percent of the electricity that is consumed in Guatemala circulates inside of this area, which is why EEGSA’s strategic plans revolve around the neighboring region’s great potential, with more competitive prices and an improvement in the quality of the supply. ENÉRGICA is a private firm belonging to EEGSA which builds and maintains electric grids.

“EEGSA has the best electricity contracts. We have overcome three bid contests in the long term and we continue to win bids in the short term


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where we can see that we can improve electricity prices. We’re no longer dependent on oil and even though we still have supply sources derived from crude oil, the majority is renewable, especially the hydro electrics and sugar farm ideas,� stated Alonso Duarte.

Company Information NAME

Empresa Electrica de Guatemala S.A. (EEGSA)

The future of the electricity company EEGSA expects to keep a sustained growth of 3 to 4 percent annually as long as demand grows (they have more than 1M customers) and as part of its own growth closer to nearby communities.

INDUSTRY

In terms of innovation, we foresee a development based on the Smart Grid. Through the pilot program this technology would mean a digitalization between the consumer and EEGSA. This means online payment, long-distance monitoring, consumer reports, and online consultations.

FOUNDED

Electricity, distribution HEADQUARTERS

Guatemala

1984 EMPLOYEES

550+ direct employees REVENUE

USD $960 million WEBSITE

www.eegsa.com

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SUGARCANE RESOURCES with Added Value

Risaralda transforms and maximizes the potential of sugarcane for renewable energy and to provide products that meet expectations with sustainable development.

Written by: Mateo Rafael Tablado, Associate Editor Produced by: Taybele Piven, Operations Director at WDM Group – Latin America

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INGENIO RISARALDA S.A.

I Headquarters of Ingenio Risaralda in Colombia

Sugar-different presentations

ngenio Risaralda is a young Colombian sugar mill founded in 1973. The company’s basis were created in association with various entities, including civil and private organizations, as well as support from the government. In 1978, Risaralda started assembling machinery for milling, with operations that produced an average of 800 tons per day. In the 1990s and after facing great challenges, a productive expansion enabled the growth and modernization of Ingenio Risaralda. Following these development steps, Risaralda inaugurated a new sugar refinery in 2000, which now serves local customers and multinational clients. In 2006, the mill began working a Biodistillery, participating in the oil and gas market in Colombia, and always following all renewable laws governing this mixture of ethanol. Ingenio Risaralda has produced an average of 100,000 liters of alcohol a day and for the last 10 years. It has increased its commitment to quality and competition. And thanks to the expansion of business lines through value added foods, the company has improved its processes and working conditions for their employees. Added Value: Diversification The competition in domestic and global markets with other Colombian sugar mills, were the main factors for Ingenio Risaralda’s evolution, from being a processor and provider of raw sugar

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cane, to become the first refinery to develop other business units.

Key People

The company markets value-added products and today offers five varieties of sugar: brown, white, special white, refined and pulverized sugar. Ingenio Risaralda has an electricity generating station capable of producing 13.5 megawatts at a frequency of 60 Hertz, capable of autosupply their operations and provide surplus to the national electricity system in Colombia. In addition, the company will open its new cogeneration power plant with a capacity of 33 MW. This is coupled with the aforementioned operation to produce ethanol for fuel by using

Cesar Augusto Arango Isaza General Manager at Ingenio Risaralda Arango is an Industrial Engineering that graduated in 1973 from the Technical University of Pereira, the capital of the department of Risaralda (Colombia). He started working at Ingenio Risaralda in February 1999, and has been part of this family for more than 15 years, during which the company has experienced diversification in its product line and value creation. Arango has received individual awards such as the Order Gonzalo Vallejo by the Departmental Assembly of Risaralda, among others.

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Sugar cane processed in Ingenio Risaralda

all waste from the sugar mill. The compost is distributed through Kompostar trademarks and Nutrihumic. Compliance with Global Standards Sugar Mill

Bio-distillery at Ingenio Risaralda

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In addition to various quality labels, Ingenio Risaralda has international certifications such as: - BASC: which ensures safe in international trade, - Certification Management System under the Food Safety Standard - International Food Safety System Certification 22000: which ensures that the sugar they produce is safe. - ISO / IEC 17025-2005 Laboratory Bio-distillery: which certifies the technical competence and reliability of the data issued


SECTOR

Workers and contractors

by the laboratory for Ethyl Alcohol, enabling compliance with the requirements for marketing this type of renewable fuel. Ingenio Risaralda has also received local awards by the Chamber of Commerce, Department of Pereira and local government agencies. Business and Community Partners Ingenio Risaralda has increased its quality standards, which are being followed by their main suppliers: cane farmers. In partnership with organizations such as Cenicaña and FUNDEAGRO (the Foundation to improve the productivity of sugar cane). Additionally, they have released programs that promote environmental, economic and social developments.

“Ingenio Risaralda has increased its quality standards, which are being followed by their main suppliers: cane farmers”

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INGENIO RISARALDA S.A. Other allies are CIAMSA (International Marketing of Sugar and Honey,) and SERCODEX, the customs agency that has managed quality in Colombian products before they are shipped abroad, primarily to Peru, Chile, USA, Europe, Russia, among others. Vanguard Storage

Storagev

One of the latest innovations in Ingenio Risaralda is their storage system or “drive-in,” which allows them to transfer merchandise placed in structures, in which the forklift moves easily. For example, bringing products to market

Somos la compañía número 1 en suministro de materiales mecánicos para el sector industrial e hidrocarburos de nuestro país, con una trayectoria de más de 40 años. Estamos comprometidos con nuestros clientes en brindar valor agregado en el desarrollo de proyectos con calidad y eficiencia, teniendo como base el mejoramiento continuo de nuestros procesos y la permanente capacitación de los colaboradores que conforman nuestro equipo de trabajo.

www.casaval.net


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share, whose shelf life is closer than other within the same facility. The system itself can store 3,500 tons of sugar, or 38 tons racks, distributed in thirteen rows and seven vertical levels.

Company Information NAME

Ingenio Risaralda S.A.

In addition, all logistics of Ingenio Risaralda are maintained and tracked via satellite. Contemplating until 2024 In Its Strategic Management Plan 2015-2024, Ingenio Risaralda seeks to become a world-class sugar mill, with a perfect use of sugarcane and near-zero waste thanks to its use in bio-fuel, and always following high standards of social and environmental responsibility.

INDUSTRY

Food – Renewable energy and Agribusiness HEADQUARTERS

Risaralda, Colombia FOUNDED

1973 EMPLOYEES

490 REVENUE

USD $225 million WEBSITE

www.ingeniorisaralda.com

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Philadelphia Gas Works PGW CEO Craig White discusses new initiatives, infrastructure upgrades, and all that lies in store for Philadelphia’s gas utility Written by: Sasha Orman Produced by: Tom Venturo


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PHILADELPHIA GAS WORKS

Corporate Headquarters

Since 1836, Philadelphia Gas Works (PGW) has been supplying residents and businesses throughout the City of Philadelphia with natural gas as a utility. But the service has not remained stagnant over those two centuries. The energy industry is evolving, and PGW is evolving with it to find new and exciting ways to serve its city. Embarking on new initiatives Within the past year, Philadelphia Gas Works has been seeking out new business opportunities—and finding several. One important prospect that the company has been 80

July 2015

working hard on is the expansion of its liquefied natural gas (LNG) assets. “We have a very large LNG footprint—over 4 billion cubic feet of storage, in addition to a liquefaction plant and a vaporization plant,” says Craig White, CEO at PGW. “So we have the ability to liquefy and store a substantial amount of LNG, and then we can do a variety of things with that. We can vaporize it and put it into our distribution system, or distribute the liquid via our truck offloading racks. That’s a business that we hope to expand, and that’s got us very excited.” PGW is also looking at increasing


ENERGY

Distribution

involvement with compressed natural gas (CNG) vehicles. The company already has one third party fueling station up and running in Philadelphia, and is hoping to expand this through an aggressive rate structure favorable to facilitating business. ”We believe that fleet use of natural gas for fleet vehicles is something that’s going to expand, as it has in other areas of the country,” says White. “We think it’s going to be here eventually, so that’s another area that we’re aggressively addressing.” A third initiative that PGW has

been pursuing intently as a strong opportunity in the future is combined heat and power (CHP). Installation of CHP systems has already grown substantially this year compared to the year before—White estimates around 30 active projects at the moment. “So it’s pretty exciting,” he says. “Combined heat and power is a nice addition for PGW.” Improving existing infrastructure Older cities throughout the MidAtlantic and Northeast regions of the United States share a rich and expansive history. But they w w w. p g w o r k s . c o m

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PHILADELPHIA GAS WORKS also share aging infrastructure in need of upkeep and renovation. In the City of Philadelphia, PGW is undertaking a major initiative to ramp up the rehabilitation of its own infrastructure, ensuring that it is able to provide better and more reliable service for years to come. “We are accelerating our program, as have other utilities in Mid Atlantic and Northeast regions— areas of the country that have a preponderance of cast-iron bare steel and unprotected steel,” says White, explaining PGW’s most recent undertaking, which consists of excavating and removing existing outdated pipe to be replaced with modern updates. “Newer systems are primarily plastic and welded steel, and we’re moving in that direction with our replacement program. We’re on pace to double our replacement of the aging infrastructure within a year.” To accomplish this goal, PGW has increased its total yearly expenditure from $40 million up to $75 million— in other words, of the $100 million budget that PGW is allotted each year, 75 percent is currently being reserved toward replacing aging infrastructure. But according to White,

ENERGY

as a matter of enhanced reliability and safety, it’s funding well spent. Improving employee safety That matter of safety is vital to Philadelphia Gas Works. “That’s what we’re here to do: we’re here to provide safe and reliable service,” says White. This is a driving force in the company’s current emphasis on infrastructure building and replacement. “Replacing infrastructure reduces risk,” White explains. “When we talk about safety, we’re not only talking about safety as it pertains to our customers: we’re certainly also talking about safety as it pertains to our employees. We have extensive training programs, and much of what we do here at PGW is just to stress that safety is the most important aspect of what we do every day. I want my employees to go home safe to their families each and every day.” Improving consumer satisfaction In addition to its daily focus on the well being of its employees, PGW also understands the importance of maintaining a strong relationship with its user base in both the w w w. p g w o r k s . c o m

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PHILADELPHIA GAS WORKS

residential and commercial spheres. “One thing we believe is very important: people have to feel they’re getting value for this service,” says White. “When they feel they’re getting good value, they’re more inclined to pay their bill and expand the use of natural gas, especially in a commercial environment. So we see customer satisfaction as a very 84

July 2015

integral part of the success of the business as we move forward.” PGW has recently been able to boast stronger JD Power consumer satisfaction scores than ever before, and it attributes much of this to a strong focus on customer satisfaction initiatives, including a revamping of its website and a commitment to taking advantage of


ENERGY

social media to connect with customers directly. “It’s a good way to stay in touch with your customers and inform them,” says White. “We’re using these social media outlets to inform our customers of what we’re doing and when we’re doing it, along with some of the other just basic blocking and tackling—when we’re on their block, what we’re doing, when we’ll be starting a project and when we finish a project. We’re trying to communicate at a very granular level with our customers to improve customer satisfaction and improve the experience when you’re working with a utility.”

Company Information INDUSTRY

Utilities HEADQUARTERS

Correspondence Department, PO Box 3500, Philadelphia, PA, USA, 19122 FOUNDED

Looking forward Moving into the future, Philadelphia Gas Works expects to immerse itself even further in the new initiatives that the company is pursuing today. “I fully expect that we will have made some decisions around LNG and be moving forward with some aspect of that project,” says White. “I see the CHP business continuing to grow with engineers, architects, building operators, all gaining experience with combined heat and power—and with CFOs recognizing the value of greater efficiency in energy systems, which will definitely hit their bottom line in a positive way. We’re going to accomplish a lot of cast iron main replacements, we’re going to expand our markets, and we’re going to expand LNG. So I’m extremely excited that within this next year: you’re going to see significant changes starting to occur at PGW.”

1836 EMPLOYEES

1,650 REVENUE

$800-900 million PRODUCTS/ SERVICES

Utilities

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Horizon Power:

Horizon Power looks to the future Managing Director Frank Tudor discusses new projects and now Horizon Power fits into the changing landscape of energy in rural and regional Western Australia Written by: Sasha Orman Produced by: Vince Kielty


HORIZON POWER

H

orizon Power is a vertically integrated, state-owned utility working in a unique space—the regional and remote areas of Western Australia, from the Kimberley, Gascoyne, and the Pilbara, to the Mid-West and southern Goldfields regions. “Its scope of operations is very large— we operate across 2.5 million square kilometres, about 1/3 of the landmass of the US,” said Frank Tudor, Managing Director. “But we only have 100,000 people that we supply spread across 40 independent systems, including the North West Interconnected System 88

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and various towns and communities.” Tudor has been with the utility in various roles since its inception in 2006 when Horizon Power was formed after the disaggregation of the state-owned Western Power. As Managing Director since 2010, he has brought his years of experience in energy, oil and gas, and foreign affairs to help navigate the business through new growth and new directions in a rapidly changing industry. Key projects of the present for the world of tomorrow “Our focus in the next five to


ENERGY

10 years is to determine how we will play a role in the new distributed energy world alongside maintaining the grid. The network will become progressively more intelligent in hosting advanced meters—which we’re in the process of rolling out to our communities, including all manner of sensors/switches,” said Tudor. Horizon Power is engaged in a partnership with Electrix and Silver Springs Network on a major investment in advanced metering infrastructure. Using smart grid technology, the company plans to better monitor its network integrity

in real time and use advanced analytics to keep equipment in top working order. It’s just one of several investments that Horizon Power is making to increase its capabilities and provide the best service possible —from power stations in the Mid-West, to network projects supporting iron ore and liquefied natural gas (LNG) industries in the Pilbara region of Western Australia. “Out of the Pilbara, Australia is exporting more than 700 billion tonnes of iron ore. It’s also host to two producing LNG plants and two other LNG projects that will be commissioned shortly. It is a w w w. h o r i z o n p o w e r. c o m . a u

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world class resource area for iron ore and natural gas, and a hugely important part of the Australian economy,” said Tudor. Horizon Power is involved in several projects in the Pilbara, including increasing the resilience of the energy grid, supporting the mining industry’s residential base, and the construction of a 100 megawatt temporary power station built in conjunction with GE’s alliance partner American Project Rentals (APR). “That power station was delivered on-budget without compromising security of supply,”

said Tudor. “The Pilbara power project is interesting because we built permanent infrastructure that will initially support APR’s transportable generators for a period of approximately two years. APR will then take those generators and deploy them elsewhere. We then plan on working with a company out of Canada called TransAlta to connect to the permanent 180 megawatt power station, again using GE machines. That will be the first combined-cycle gas-fired power station in the Pilbara.”

SUPPLIER PROFILE

ELECTRIX SECURES HORIZON POWER CONTRACT

Electrix is proud to support Horizon Power in the rollout of the Advanced Meter Program. Electrix has made a firm commitment to Western Australia and has a solid base of both people and equipment on the ground in the state to ensure it can deliver on its service promise to customers. Electrix offers owners of electricity distribution networks a wide range of experience in providing asset management, maintenance and construction services for overhead and underground assets. Electrix values innovations that add-value to clients, assisting them to effectively manage the safety and reliability of their networks while maintaining the balance between operational, maintenance and capital requirements. Electrix is recognised as a leading provider of network inspection services with customers relying on Electrix to inspect more than 300,000 poles and related assets per annum to ensure the safety, reliability and durability of their networks. For more information please contact: Australia: Ian McLeod Phone # +61 3 8698 2200 Address 3/153 Bertie Street, Port Melbourne Victoria 3207, Australia

Website: www.electrix.com.au

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100 YEARS

POWERING PROGRESS

TransAlta is powering industry in Australia. We’re the largest behind-the-fence provider of electricity in Western Australia with 575MW of generating capacity in operation or under construction. We supply our customers with safe, reliable energy and are looking for new opportunities to power progress.

www.transalta.com


HORIZON POWER Making plans for the industry’s future “We need to be as any energy company across the planet needs to be: thinking about the future of the industry,” said Tudor. With this in mind, Horizon Power is taking potential industry trends and drivers of change into serious consideration—particularly the role that renewable and photovoltaics (PV) will increasingly play both at a residential and utilities scale level. “The take-up of renewable and PV across the planet has been extraordinary,” said Tudor. “China has been focused on cleaning

SUPPLIER PROFILE

ENERGY

up its environment, and its PV production has certainly driven down costs—and it has made huge inroads into the makeup of energy production in Australia. In Perth we have some 340 megawatts of residential PV installed, so we are getting close to penetration levels of 20 per cent. In other parts of the country—for example parts of Brisbane and Adelaide—the penetration is approaching well over 30 per cent. I think across the world, we are leading the take-up of residential PV.” Of course this change leads to the inevitable question: what does this

TRANSALTA

TransAlta Energy Australia is an experienced electrical operator serving large industrial customers in Western Australia. The company is the largest behind-the-fence supplier of electricity in the state with 425 MW of generating capacity and 150 MW of additional capacity under construction. Doubling the size of its business in the past three years, TransAlta has invested close to a billion dollars in assets with stable long-term contracts. Since 2011, the company has acquired the 125 MW Solomon power station, built the 270 km Fortescue River Gas Pipeline with its partner DBP Development Group (DDG), and is currently constructing the new 150 MW South Hedland power station, which will be the most efficient combined-cycle power plant in the region. TransAlta continues to grow in Western Australia, building on two decades of providing safe, reliable power in the region.

Website: www.transalta.com

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mean for the industry? “In essence, the physical size of traditional utility businesses is probably shrinking,” said Tudor. “So one of the issues for utilities is how do you continue to maintain relevance and grow your business when aspects of your traditional model look like they are shrinking? That poses a lot of questions in terms of the competency you need, and how you actually position and restructure a

business to be able to develop a new business arm while still managing your existing core business.” These issues are very much in play for Horizon Power, putting the company in the position of providing its core business to consumers whilst moving into a strong position to continue delivering in the future when the energy industry starts to look very different.

SILVER SPRING NETWORKS

SMART GRID NETWORKS TODAY. EVERYTHING NETWORKS TOMORROW.

Silver Spring Networks delivers the leading solutions and networking platform used by utilities worldwide to support multiple smart grid applications on a single, unified network. With over 20 million homes and businesses connected worldwide, including over 2 million in Australia, Silver Spring is the leading provider of smart grid and advanced metering systems. To learn more, please visit www.silverspringnet.com.


ENERGY

“I think people liken it to the Kodak moment that has seen other industries besieged by destructive technology, for example when we went from film to digital or mainframes to PCs.” said Tudor. “In our industry the question is when do we reach the tipping point? We’re moving from distribution by centralized power stations towards an interactive network for customers, where

connected customers are producing their own electricity and becoming an integral part of the grid. Any evolution of that looks and feels like a very different system than the one that we operate today.” Setting new benchmarks for success For the last couple years Horizon Power has been in the midst of a transformation, inspired by the w w w. h o r i z o n p o w e r. c o m . a u

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HORIZON POWER progress made by regional coops with similar business models in the United States. “We did a pretty extensive benchmarking exercise against the co-ops— making allowances for differences in jurisdictions, regulations, and various things that exist at a business level between the US and Australia—and we learned a lot of lessons that we could apply,” said Tudor. While Horizon Power set ambitious goals, it is already making significant progress in achieving them—among other things, the company is already 70 per cent of the way toward a target to reduce discretionary costs by half. “So when you ask what our priorities are right now, it’s to continue to deliver on the target we set ourselves,” said Tudor. “It’s all about reforming our core business, incorporating the lessons that we learned from the benchmarking, and driving those lessons through some 40 separate initiatives that we’ve allocated to our senior management staff across the business.” A partner in energy One crucial trait that serves to set 96

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Horizon Power apart as an energy provider is its understanding of and proximity to the communities it serves. “Our vision from inception is to be your local energy partner,” said Tudor. “We’ve got a physical presence in the regions that we service—we have people on the ground, interfacing and responsible for the management of assets and our customer base locally. When you think about the sort of regional communities that we service, this is a key attribute that is made more important as other businesses withdraw their services. It also happens to be the most efficient and effective way of managing our regional assets and customers. According to Tudor, having people on the ground in rural and regional areas helps customers gain a better perception of Horizon Power as a true part of the community, which is especially vital in a world where consumer relationships with energy are changing. “People can access us, and talk to us—our people meet in the towns, and that in itself reinforces our sense of community and obligation,” said Tudor. “We’ve got to make sure that


ENERGY

people are aware of what we’re doing and that we’ve got reliable power and affordable power. So we’re very much part of the communities, and I think that we’re well placed to work through the future with customers, as they become more active in the provision of their own electricity.” Looking ahead Where does Tudor see the energy industry in the future? “I see the industry in a state of flux—I don’t look at any jurisdiction anywhere on the planet to see that people have got it right, and I don’t think any company working in any of those jurisdictions has got a clear and certain way forward to success,” he said. “They’re all in their own different ways looking at distributed energy and assessing what they should do in that space. Some have gone to the extent of splitting their businesses in two, so that they can aggressively follow a distributed energy path without worrying about any decisions they make in that path having a negative impact on their existing business. Then you’ve got others extending and defending the traditional business models.” But that state of flux is not a bad thing. To the contrary, it means that the industry is in an exciting time for the more adventurous and adaptable. “Having said all of that it’s a really interesting place to be,” he adds. “I think that—if you take it as such—it’s full of opportunity.”

Company Information INDUSTRY

Energy HEADQUARTERS

Karratha, WA, Australia FOUNDED

2005 PRODUCTS/ SERVICES

Horizon Power is a state-owned commercial corporation providing energy resources to 100,000 residents and 10,000 businesses across regional and remote Western Australia.

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GULF POWER Energising Kenya’s growth Written by: Nye Longman Produced by: Anthony Munatswa


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Gulf Power entered Kenya’s energy market in December 2014

Using its recent HFO power plant as a model, Gulf Power has developed a socially, economically and environmentally sustainable model for sustained growth

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ulf Power is a special purpose vehicle for the construction and operations of an 80 MW medium speed diesel power plant in Kenya. Gulf Power entered Kenya’s energy market with its $112 million, 80MW, Medium Speed heavy Fuel Oil (HFO) power plant which became operational in December 2014. This commissioning was in the wake of many challenges and opportunities: in what is quickly becoming a crowded sector, Norman Wanyiri and his team have optimised the business for consistent performance well into the future. Operations Gulf Power received high profile funding to construct its plant from both the International


AFRICA

Finance Corporation (IFC) as well as the OPEC Fund for International Development (OFID) which together contributed about $75 million. This is a solid indication that the plant is part of the country’s short and long term Least Cost Power Development Plan and is thus worthy of international funding on this scale. Wanyiri noted that financial endorsement from the IFC and OFID also brought with it the requirement to adhere to the highest global standards in management practices, as well as environmental and social initiatives which in turn ensured that the plant was built in line with global technological and engineering standards. The HFO power plant at Athi River near the capital Nairobi is a state of the art project and is

112m Amount in USD that Gulf Power’s power plant cost

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v

info@vivaafricallp.com www.vivaafricallp.com

Specialist legal and financial tax consultants

Viva Africa Consulting LLP (VACL) is a specialised legal and financial tax advisory firm providing tax advice in personal, business and investment matters. VACL comprises of some of the leading experts in East African taxation, all of whom have gained their experience from many years of practice with a ‘big four’ a professional firm.

3rd floor, Kiganjo House Rose Avenue, Off Denis Pritt Road. P. O. Box 50719-00200 Nairobi.

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Tel:

+254 +254 Mob: +254 +254

20 2465567 20 2699936 725389 381 733248 055


GULF POWER

AFRICA

the first of its kind, Wanyiri said: “Up until now, Independent Power Producers (IPPs) in Kenya have been dominated by foreign investors. Gulf Power is the first IPP to be fully owned by indigenous local Investors.” Aside from infrastructure challenges, it is interesting to note that the HFO plant faces competition from other players at this stage. For instance, Wanyiri noted that there had already been several major renewable energy commitments across the country, including the construction and commissioning of 280MW geothermal power plants in the fourth quarter of 2014. Gulf is however confident of higher dispatch factor in the future, since two thirds of Kenya’s population is still without electricity, he said: “We have the potential to grow if required; just by using our current installed infrastructure, we can Two thirds of Kenya is still without electricity

Key Personnel

Abubakar Ali Chief Finance Officer Abubakar is a fully qualified Finance Expert and Leader with vast experience of leading financial strategies to facilitate companies’ ambitious growth agenda. He possesses proven ability to constantly challenge and improve existing processes and systems for optimal efficiency in achievement of business projects. His professional demeanor is excellent and his negotiation capabilities are valuable to any business.

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GULF POWER expand the current capacity by another 40MW by adding additional generating units.”

Norman Wanyiri, General Manager

Talent Management. The HFO plant directly employs 10 professionals, as well as an additional 40 people indirectly through operational and maintenance contract with Wärtsilä Eastern Africa, Since the plant has only been operational since December last year, training requirements have focused mainly around ensuring that the plant and its staff meet both Kenyan statutory requirements, as well as extra safeguards outlined by the World Bank, Wanyiri said: “At the moment we

Challenging the status quo in Energy in Africa

POWERING TOMORROW’S PROGRESS TODAY.

We’re proud to be there to help Gulf Power and the larger Gulf Energy group bring clean energy solutions to life.

citi.com/progress

© 2015 Citigroup Inc. Citi and Citi with Arc Design are registered service marks of Citigroup Inc.

Some strive to give energy to solutions that spark commerce and growth, and what they need today is an ally to help them deliver a more ecological, sustainable tomorrow. What if a bank made that its job? We think a bank should.

Dentons has been engaged in Africa’s dynamic and exciting energy markets for decades. Our long track record on the continent means we have a thorough understanding of the political, economic, regulatory and legal issues that surround doing business in East Africa. Our world class team of energy lawyers are proud to have advised Gulf Power on the Athi River 80 MW heavy fuel oil power project. We wish Gulf Power every success in their venture.

dentons.com © 2015 Dentons.Dentons is a global legal practice providing services worldwide through its member firms and affiliates. Please see dentons. com for Legal Notices.


AFRICA

are conducting statutory training; our employees have been trained on occupational health and safety, first aid and emergency preparedness. We also plan to empower some of our engineers in specialised electrical and mechanical engineering courses in power plants.” Social Responsibility Although the facility only requires a lean team, Gulf Power recognised early on the opportunity to integrate corporate social responsibility into its daily operations. Wanyiri noted that not only did the business have several dedicated social and environmental programmes in place, this was also implemented by a specialist community liaisons officer. He said that the community liaisons officer immediately had his work cut out; he said: “Before and during the construction phase, the local community wanted to know exactly what would happen to their neighborhood and if there would be any adverse effects to the community.” He added: “Through this liaisons channel that we had established between the business and

Inside the power plant

“Currently, only 30 percent of Kenyans have access to electricity and, with the government aiming to double this figure in coming years, Gulf Power’s expansion in the country could not be timelier” – Norman Wanyiri, General Manager w w w. g u l f p o w e r. c o . k e

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Engine Hall

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the community, we were able to assure them that there would be no environmental and social adverse effects.” Echoing its future-oriented business plan is Gulf Power’s focus on investing in the country’s future leaders and workforce. Wanyiri said: “We plan to provide 2 prefabricated classrooms to one of the schools in the area this year and we may provide more in the future so we can further ease congestion and give the children a better learning environment.” The company also plans to supply educational materials, as well as mentoring future


AFRICA

potential leaders. Combining its management team’s experience with solid financial backing, the company is aiming to provide mentoring and scholarships to disadvantaged students. Wanyiri added: “Some Bright children often may not make it to join the best schools because they cannot afford to pay the required fees, so we are planning to fund several of them through high school and university, while giving them support they need to remain focused through mentoring.” For Gulf Power, social responsibility is not limited to signing a cheque; it understands that its contributions strengthen the communities and the individuals within them, providing many with the opportunity to traverse the limitations of their circumstances. Furthermore, in order to mitigate its environmental impact, Gulf Power is exploring the option of using solar panels to meet some of the plant’s energy needs; it has also undertaken an extensive tree planting programme around its facility which will lock in carbon for generations to come. Currently, only about 30 percent of Kenyans have access to electricity and, with the government aiming to double this figure in coming years, Gulf Power’s expansion in the country could not be timelier. Positioning itself in the Kenyan market as a socially and economically responsible energy provider will not only give the provide the company with the diverse revenue base it needs, but also sets it up to grow in capacity as the Kenyan economy develops.

Company Information INDUSTRY

Energy HEADQUARTERS

Athi River FOUNDED

2007 EMPLOYEES

50 direct and indirect REVENUE

$48 million PRODUCTS/ SERVICES

Energy provider

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Profile for Energy Digital

Energy Digital - July 2015  

Energy Digital - July 2015  

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