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KEY INNOVATIONS IN THE COMPETITIVE LNG MARKET

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DE C E MB E R 2 0 19

STRENGTH THROUGH EFFICIENCY

Supporting sustainable energy expansion

Looking across industries for inspired innovations innogy is accelerating the green energy transition for all stakeholders through digital innovations Most reputable companies


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FOREWORD

W

elcome to the December issue of Energy Digital!

The renewable energy market can look back on a particularly strong year. While the effects of the climate crisis are being more sorely felt around the world, there is plenty of cause for hope for a green future whether it’s consumer consciousness around sustainability and ethics or the exponential and global growth of renewable energy capacity. Our cover feature this month focuses on a firm committed to easing the transition from fossil fuels to renewables: innogy. Kuldip Singh, Digital Director Retail International at the German energy provider, spoke with Energy Digital about the company’s digital transformation and the technologies driving renewables uptake among its customers. “We want to play a leading role in the

global green energy transition and we believe that digital and disruptive new technologies are going to be at the heart of speeding up this process,” he says. “We apply digital innovations to our sustainability products and services with the clear ambition to keep this planet a great place to live and work.” With sustainability and CSR firmly on the agenda for top firms worldwide, we’ve also taken a look at the companies leading the reputation race for this month’s Top 10. Be sure to check out the in-depth company profiles of Berhad, Total, Solis RE and more, along with our exclusive Q&A with ENGIE Impact CEO, Mathias Lelievre. Enjoy the issue! Marcus Lawrence lawrence@bizclikmedia.com

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CONTENTS

12 innogy

How Impact is enabling sustainability transformations

30


42 The future for large electricity users

Are we there yet? The challenges on the Road to Zero

60 MOST REPUTABLE COMPANIES

52

76 The biggest sustainability events


80 McDermott

98 Sapura Energy


110 Total Solar

124 REC Solar

140 Solis Renewable Energy


12

DECEMBER 2019


13

Looking across industries for inspired innovations WRITTEN BY

OLLIE MULKERRINS

PRODUCED BY

BEN MALTBY

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INNOGY SE

innogy is using digital innovations to speed up the green energy transition and help 23mn customers become more sustainable

i 14

nnogy is a large-scale energy provider based in Essen, Germany, currently serving 22 million clients across Europe. The com-

pany spans three major industry demographics: retail, grid infrastructure and renewable energy production. It has also started to expand into the e-mobility market with one of the largest charging point networks in Europe and a worldwide number of 34,000 charging sites. Since innogy was carved out from RWE and listed on the M-DAX separately in October 2016, the business has been driving digital transformation as a key part of its strategy. Kuldip Singh, Digital & Data Director Retail International and part of the Retail Leadership team, sat down with us to elaborate. “We want to play a leading role in the global green energy transition and we believe that digital and disruptive new technologies are going to be at the heart of speeding up this process,” explains Singh. “Digital transformation is really at the heart of our customer facing business. We’re constantly looking for ways DECEMBER 2019


“Keep this planet a great place to live, not only for the current generation but for many to come” — Kuldip Singh, Digital Director Retail International, Retail Leadership Team, innogy

15

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INNOGY SE

2016

Year founded

€36.9bn Approximate revenue

to optimise our end-to-end customer journeys - seeing where we can give our clients a ‘digital delight’ as I like to call it - as well as exploring new business models which are data-driven, platformbased, and highly scalable in nature.” innogy is, next to its core business of supplying electricity and gas to its customers, making services available

42,000

16

Approximate number of employees

to help customers install and maintain sustainable energy solutions such as photovoltaic (PV) panels, insulation of houses, smart home devices and e-thermostats, all with a view to “make society more sustainable.” As part of the Retail Digital Program, the focused use of digital innovations such as AI is able to grant customers a seamless and insightful journey into sustainable solutions for their home or business. “A beautiful example is the application of data analytics and artificial intelligence algorithms to make the whole journey of orientating and selecting solar panels easier for customers: Looking at whether your house is able to have solar panels on the roof as well as buying or renting them. What we have done is to bring lots of data points and sources together (through selected partners)

DECEMBER 2019


CLICK TO WATCH : ‘HELLO, I AM INNOGY’ 17 and have thereby been able to give the

with their local heads of digital, driving

customer a complete online journey.

a joint roadmap and enabling the delivery

Several years ago, this journey could

of selected digital value pools with

have taken several months due to uncer-

great scaling opportunity across all

tainty. Now, we have narrowed that down

these markets.

to a one-click experience, completely

An important pillar of the Retail Digital

online: enter your ZIP code and house

program is the delivery of a joint Mobile

number and an algorithm calculates how

Strategy across markets, in which innogy

many panels can go on your roof, how

realises smarter and faster app develop-

productive they will be, your payback

ment, improved life-cycle management

time and investment needed including

and best practice sharing in all aspects

a rental option” says Singh.

including a joint asset library for UX and

A key driver of the Retail Digital pro-

design. “We work closely with all our mar-

gram is our Leadership Team Digital that

kets to give customers a seamless and

consists of the key six markets of innogy

consistent mobile experience within all w w w.e ne rgydi gi ta l. com


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For some of the largest utilities around the world, such as Centrica, Enel and Pacific Gas & Electric, the journey to the cloud is already well underway. But there is ample opportunity for utilities of all sizes and under all regulatory frameworks. For energy providers that have not yet mapped out a transformative customer experience, now is the time to embrace an agile platform and chart a course. Making the most of the cloud requires much more than just a technology change; it requires evolving processes and transforming the business culture. Amazon Web Services (AWS) gives power and utility companies the foundation to focus on delivering the best customer experience and achieve operational and cost efficiencies while meeting demand securely and reliably; the flexibility to evolve their business model and innovate in a rapidly changing industry; and the critical business insights to transform the industry. AWS Power & Utilities solutions address the industries four core business categories and are centered around IT and OT Transformation, Workforce & Asset Management and Customer Engagement. These are underpinned by Data Insights and core cloud services consisting of database, edge technologies, AI/ ML, IoT, analytics and voice services. WATCH Innovation in Power & Utilities with AWS Digital Transformation to Drive Customer Innovation in Energy Efficiency

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INNOGY SE

“Digital transformation is really at the heart of our business” — Kuldip Singh, Digital Director Retail International, Retail Leadership Team, innogy

20

innogy brands” says Sebastian Schmelz,

reinventing the wheel when it comes to

Team Lead Digital Program.

meeting the demands of its business. A

To achieve a comprehensive view of a

successful example is AI-based online

client’s needs, innogy has worked with

experimentation to improve the sales

several partners outside energy sector

funnel for innogy products & services. By

to integrate innovative technology into

testing a multitude of changes in the dif-

its platforms and processes. Through

ferent online pages, innogy can in a short

tried and tested applications, developed

period of time increase sales conversion

in other industry sectors, innogy avoids

significantly, as proven by great impact

DECEMBER 2019


achieved by the energiedirect.nl digital

renewables energy industry. Singh

team. This way of working (“testing and

explains: “We should not be bench-

validating customer flows at scale using

marking ourselves against what

AI based tooling”) is now being scaled

energy companies are doing, but

to other innogy markets, too.

rather look at what other industries

Through adaptation and innovation, innogy is catering to businesses and individuals looking for sustainable

that are ahead of us are doing as also the big tech companies.” Amazon Web Services (AWS) has

energy solutions. As the global industry

been able to provide intricate AI, originally

becomes more interconnected, cus-

used in its online services, to provide an

tomer expectations are founded on

efficient data farming solution. “AWS is

the achievements of disparate sectors.

a partner we are working with very

The Amazons and Googles of the world

closely to see how we can leverage

are setting those expectations and,

advanced analytics and artificial intel-

by looking at them for forward-thinking

ligence in several complex use cases

and rapid innovation, innogy is able

and, by working with them, use algo-

to stay ahead of the curve within the

rithms to be predictive,” Singh explains.

E XE CU T I VE PRO FI LE

Kuldip Singh Kuldip Singh is a digital executive with a strong grounding in digital technology adoption and digital business scaling. He has been a digital executive in CXO roles in reputed global media companies and is now leading the digital transformation at innogy in the international retail business.

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21


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INNOGY SE

24

DECEMBER 2019


“We can be more relevant, more personalised, and more real-time in our offering” — Kuldip Singh, Digital Director Retail International, Retail Leadership Team, innogy

most relevance and impact for a cus-

tomer. The Essent Commercial Director Boudewijn Wildeman is working very closely with Singh’s team on this and states: “I believe we can nurture customer relationships much better with this kind

One of the very impactful use cases is

of technology that can enable us to work

centered around retail energy manage-

in an omnichannel approach. We can be

ment and demand forecasting. “By using

more relevant, more personalized, and

the Amazon Sagemaker DeepAR fore-

more real-time in our offerings, whenever

casting algorithm in a successful pilot,

that needs to be done.”

we were able to develop a clear roadmap

As part of its journey to a digital

to further improve our forecasting, which

workplace, Innogy collaborated with

is a very important aspect of energy

Infosys to introduce new multilingual

management.”, states Carsten Kleewald

capabilities, such as the chat chan-

of the Retail Energy Management team.

nel for service desk interactions and

In addition, innogy uses the AWS data

automated password reset. This set the

analytic solutions for a “Full Household

foundations for workplace digitalisation,

View” platform in the Dutch and Belgium

while also offering its employees and

markets. The platform provides the

partners the choice, convenience and

Essent business with the opportunity

control that they experience with their

to do real-time personalization using

personal technology environment.

customer profile data and actual online

In the Netherlands, Infosys not only

behavior combined with a best-offer

manages innogy’s key IT platforms to

matrix. This allows for accurately advis-

efficiently run its B2C business, but

ing on which products could have the

also helps it in building successful new w w w.e ne rgydi gi ta l. com

25


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INNOGY SE

“We should not be benchmarking ourselves with what energy companies are doing” — Kuldip Singh, Digital Director Retail International, Retail Leadership Team, innogy

28

DECEMBER 2019


business models (e.g. implementing mixed reality for its boiler maintenance business). It is also improving the digital fluency of innogy’s internal IT teams through focused training programmes n its global learning and innovation hubs. Singh adds: “We apply digital innovations to our sustainability products & services with the clear ambition to keep this planet a great place to live and work, not only for the current generation, but for many generations to come.” The acquisition of innogy by E.ON has also given it a much wider scope to expand. “Together with E.ON, innogy is going to be even bigger; we will grow from 11 to 15 countries, in which we service 50+ mn customers with more than 70,000 employees. I believe that we are even better set up for scaling digital in the future,” says Singh. “My intention is to build upon the good things we’ve done in this retail digital transformation and, of course, learn from the great things that E.ON is doing and ensure that together one plus one becomes three.”

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LEADERSHIP

30

DECEMBER 2019


How Impact is enabling sustainability transformations Mathias Lelievre, CEO, ENGIE Impact, speaks with Energy Digital about the ENGIE spin-off’s operations, how it drives sustainability transformation and the challenges facing the opportunities of a sustainable future EDITED BY

M ARCUS L AWRENCE

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31


LEADERSHIP

T

ell me a bit about yourself and the work you oversee at ENGIE Impact

As the CEO of ENGIE Impact, my objective is to establish ENGIE Impact as the go-to partner for large corporations, cities and public authorities that need support with accelerating the transformation of their operations to be sustainable, getting from commitments to actions. The way businesses and governments approach sustainability has changed significantly in recent years as technologies have matured and stakeholder demands have grown. Organisations are ready to act,

32

but are challenged with where to prioritise efforts and how to accelerate their sustainability programmes to capitalise on the opportunity it is affording. I guide ENGIE Impact’s development of digital technologies, services and talent so that we can help those businesses and governments. What inspired ENGIE to launch a dedicated sustainability venture? In line with the Paris Agreement, over 500 companies have publicly committed to sustainability targets, yet only 15% of those are on track to achieve them. The complexity in identifying and acting on cost-effective sustainability investments means that countless opportunities go unrealised every day, with greater demand from stakeholders like customers and employees that directly impact business performance DECEMBER 2019


33

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LEADERSHIP

moving the sustainability discussion into an imperative. Companies are striving towards a zero-carbon future, but the changes aren’t happening fast enough. ENGIE Impact enables sustainability transformation for companies and authorities that otherwise couldn’t achieve it. We accompany the changes because technologies also require a meaningful transformation of behaviours. What do you view as the biggest challenges facing companies looking to integrate sustainability into their operations?

34

Historically, sustainability has been contained to the facility level, but sustainability transformations must apply to the whole organisation. Businesses that align their objectives and departments with sustainability at their core achieve successful sustainability transformations. Relationships between corporate FACTS

• At present, 80% of greenhouse gas emissions and 75% of global energy use come from cities

sustainability and financial decisionmakers often lack alignment, meaning that sustainability teams are often brought into the planning process too late and cannot present an effective case. It leads to retrofitting sustainability instead of building sustainabil-

DECEMBER 2019


CLICK TO WATCH : ‘ENGIE - UK & IRELAND’ 35 ity into activities and actions from

What legislative changes do you

the ground up. There is tremendous

think are most pressing for govern-

opportunity when you take a holistic

ments seeking to meet the UN’s

view across the enterprise to

SDGs and their own carbon neutral-

understand where you can get quick

ity goals?

wins, inform how to invest capital

I believe in the complementarity

and build an integrated strategy to

of governments and businesses

mitigate risk and build on the savings

working hand-in-hand to face the

to extend the benefits.

global threat of climate change.

Companies are also failing to

Some governments have been a

effectively measure ROI or outcomes

great support in the past to help

of new sustainability initiatives, such as

mature certain technologies and

emissions reductions. The data and

that support needs to continue.

tools exist to make this happen, but companies must plan for this up front.

The regulatory framework must allow technologies to get to market faster. w w w.e ne rgydi gi ta l. com


LEADERSHIP

“The key is to get to action at speed and at scale because our world cannot wait much longer for a resolute decarbonisation of our systems” — Mathias Lelievre, CEO, ENGIE Impact

36

Consider how we can accelerate

towards a sustainable business model.

electric mobility, for example – the

It is the responsibility of the business

prices of electric vehicles (EVs) are

leaders in the world to make sustainabil-

declining, whereas, in contrast, non-

ity happen today!

electric prices are the same as in recent years. The cost curves are going to

Could you offer an example of clients

cross each other at some point and with

you’ve worked with, such as GE and

the right framework and incentives in

the successes that ENGIE Impact

place this can happen faster.

has helped to facilitate?

Businesses have a lot of responsibil-

GE Renewable Energy is a great example

ity to act today. The pressure from

of how an integrated and global approach

stakeholders, as well as the next

can accelerate business opportunities.

generation of clients, is increasing.

It has a goal to achieve carbon neutrality

There is a positive business case to shift

by the end of 2020, globally, but they

DECEMBER 2019


Is there a gap between the general aims of digital transformation and the need to implement sustainable and ethical processes into modern business? Digital transformation and sustainability are powerful trends influencing almost every aspect of the corporate landscape. If a business is to be truly modern it should ensure digital transformation and sustainability work hand-in-hand. AI, Big Data and IoT are all being integrated into the workplace to shift and reshape the market. As the use of these solutions increases, so does the ability to use them for sustainable and need a foundation of data and compre-

ethical processes. Already we see

hensive global view of their entire

organisations using tools to capture,

portfolio to effectively understand what

analyse and act on data to map their

action to take. As its partner, ENGIE

environmental footprint and, blockchain

Impact provides this holistic analysis

has displayed promising solutions for

and, supported by our data management

facilitating sustainable investments and

services, we were able to bring a

enabling supply chain transparency.

roadmap and business case to achieving

Data is at the core of informed

this goal, which is then supported by

sustainability decision-making. Gather-

on-site services, like on-site audits.

ing granular data to enhance insights has

Our team is working with GE Renewable

always been a challenge, but is being

Energy hand-in-hand to ensure the right

made easier via IoT-based solutions.

benchmarks are achieved and it stays

A great example of this is dumpster

on track to deliver its goal!

monitors, which integrate real-time data w w w.e ne rgydi gi ta l. com

37


LEADERSHIP

“The way consumers perceive and interact with organisations who are failing to become more sustainable is helping to drive change” — Mathias Lelievre, CEO, ENGIE Impact

What do you view as the biggest challenges to creating sustainable urban environments, and what steps can be overcome to tackle them? At present, 80% of greenhouse gas emissions and 75% of global energy use come from cities. Urban environments are a priority area for authorities, as well as companies that contribute to the infrastructure. For authorities, the main barriers holding back sustainabil-

38

to better understand an organisation’s

ity acceleration in towns and cities are:

waste stream, enabling better-informed

resources: time, people or funding;

decisions on the biggest barriers to

skills to understand sustainability; and

achieving zero-waste, and optimisation

challenges of engaging with and

of waste containers and frequency of

satisfying diverse stakeholders. Good

pick-ups to drive significant savings. As

intentions among the authorities to

the demand for sustainable processes

drive change are often challenged by

increases, we expect organisations to

these barriers.

closely align their digital transformation

We work with our clients, whether

practices and sustainability processes to

they’re businesses, cities or govern-

improve innovation while simultaneously

ments, to make sure that all barriers

meeting sustainability goals.

are identified from the offset and

The more we use data, the more we

develop a feasible strategy to over-

need to monitor the carbon production

come them. With larger infrastructures,

of digital infrastructures. It is clear that

it’s about identifying executable

the large players are taking the subject

options that could break it down into

very seriously. In a booming industry like

manageable chunks. Full sustainability

the data centre space, being able to

transformation will change the very

design more efficient and green sites

core of how organisations and

from inception is key.

authorities operate.

DECEMBER 2019


39

Is there anything else you would like

number are voting with their dollars with

to add or reiterate?

companies implementing initiatives

Sustainability transformation is

such as zero carbon. Unilever’s recent

happening now! The key is to get to

announcement that it is cutting plastic

action at speed and at scale because

use to appeal to Gen Z customers is the

our world cannot wait much longer for a

latest evidence of this growing trend.

resolute decarbonation of our systems. The way consumers perceive and

We expect more businesses to take a stand on sustainability and employ

interact with organisations who are

CSR initiatives that reduce environ-

failing to become more sustainable is

mental impact as they seek to satisfy

helping to drive change. More and more

buyers and shoppers that consider

consumers are demanding organisa-

sustainability a top priority.

tions strengthen their CSR programmes and operate sustainably. An increasing w w w.e ne rgydi gi ta l. com


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S U S TA I N A B I L I T Y

42

The future for large electricity users Siemens offers insight into the challenges facing large electricity users in the UK and the solutions that are being explored, with comment from Carl Ennis, Head of Product and System Sales, Smart Infrastructure, UK and Ireland WRITTEN BY

SIEMENS

DECEMBER 2019


43

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S U S TA I N A B I L I T Y

T

he only way that major electricity users will be able to be sustain the costs of managing electricity in the

future will be by generating and storing their own electricity and selling back to the grid,” says Carl Ennis, Head of Product and System Sales, Smart Infrastructure, UK and Ireland, who takes over as CEO of Siemens UK in January 2020, at this year’s UK Energy Storage Conference (UKES 2019). In the UK, there is a national imperative to decarbonise and have cleaner air in our cities and regions. Most large electricity 44

users are increasingly committed to reducing their CO2 footprint and overall use of energy, and Siemens is also committed to being carbon neutral globally by 2030. The company is already well underway with new smart buildings in Switzerland and South Africa, having been opened this year, plus extensive work being carried out and planned on existing buildings worldwide. With a portfolio of over 1mn sqm of space and spending some €300m on new construction projects annually, Siemens has a global workforce of 379,000 involved in the manufacture of everything from trains and wind power to hospital equipment and energy management systems, plus extensive R&D facilities. DECEMBER 2019


“The only way that major electricity users will be able to sustain the costs of managing electricity in the future will be by generating and storing their own electricity and selling back to the grid” — Carl Ennis Head of Product and System Sales, Smart Infrastructure, Siemens 45

“From buying electricity generated by government-run power stations, larger organisations have moved to sourcing electricity from a range of providers and now, increasingly, to generating their own electricity, mainly with solar power or wind turbines,” explains Carl Ennis. “Now we all need to be looking at both selling electricity to the national and micro grids along with on-site storage of electricity generated in low demand periods for use at busier times. Costs are falling for Internet of Things (IoT) products and energy managew w w.e ne rgydi gi ta l. com


S U S TA I N A B I L I T Y

“We are currently working with Keele University on a project to make them self-sufficient in energy, saving them £2mn a year” 46

— Carl Ennis, Head of Product and System Sales, Smart Infrastructure, Siemens

ment systems needed to run effective usage, but we are still looking at major levels of investment which can only be justified by an income stream from selling electricity or very significant savings in energy use. For example, we are currently working with Keele University on a project to make them self-sufficient in energy, saving them £2mn a year.” Because solar and wind power, the most common options for self-generation, are intermittent, storage has to be considered. At any given time, 95% of cars are parked, so one of the DECEMBER 2019

interesting opportunities for storage is the use of electric vehicle (EV) batteries. The proposition is that when EVs, having replaced the 38mn vehicles currently on UK roads, are not in use, they are connected to the grid, national or micro. Through smart management they will be able to supply electricity to the grid or draw power to be charged when needed. An electric car can typically store an average home’s daily energy demand. Government policies are pushing the rapid development of ever faster charging and higher capacity vehicle


CLICK TO WATCH : ‘TURNING KEELE INTO EUROPE’S BIGGEST SMART ENERGY NETWORK DEMONSTRATOR’ 47 batteries to make EVs more attractive to consumers. Using energy stored in the batteries of EVs in the car park to power large buildings, or sell to the grid, not only provides electricity for the building but also increases the lifespan of the vehicle batteries, according to researchers at Warwick University. Ideally, in the longer term, we should be moving away from rare earth metals, essential to the current wave of battery development. Lithium, cobalt, vanadium, copper and so on have a clue in their generic name: they w w w.e ne rgydi gi ta l. com


S U S TA I N A B I L I T Y

are rare. Furthermore, these minerals

ment current capabilities and future

are mostly found in countries with

system needs,” Ennis points out.

unstable or inimical political systems,

“Hydrogen, one of the most common

and where mining practices do not

elements on Earth, has always played

always meet the basic human rights

a major role in the fuels we use, but is

standards we would wish for. Electro-

also a potentially very important fuel in

chemical battery systems have been

its own right. We have produced

the technology of choice in most of the

hydrogen power cells for on-site

storage applications to date, a lot of

storage of solar and wind generated

research power goes into alternatives.

electricity which can then be used for

“Siemens researchers and our joint

48

off-grid EV charging – including

projects with universities are particu-

performance cars at the Goodwood

larly focused on the higher capacity

Festival of Speed – to augment power

technologies which will better comple-

connections in car parks. This is in

DECEMBER 2019


cobalt, vanadium, copper and so on have a clue in their generic name: they are rare. Furthermore, these minerals are mostly found in countries with unstable or inimical political systems, and where mining practices do not always meet the basic human rights standards we would wish for. Electrochemical battery systems have been the technology of choice in most of the storage applications to date, a lot of research power goes into alternatives. “Siemens researchers and our joint projects with universities are particu

“Hydrogen fuel cells generate electricity by combining hydrogen and oxygen. They are reliable and quiet, with no moving parts, have a small footprint, high energy density and 49 release no emissions – when running on pure hydrogen, their only by-product is water” — Carl Ennis, Head of Product and System Sales, Smart Infrastructure, Siemens

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S U S TA I N A B I L I T Y

addition to fleet vehicle parks for EV charging at multi storey car parks, shopping centres, parking for buses, ambulances and police cars; for powering trains on the systems of many countries; and for powering heavy goods vehicles. Hydrogen fuel cells generate electricity by combining hydrogen and oxygen. They are reliable and quiet, with no moving parts, have a small footprint, high energy density and release no emissions – when running on pure 50

hydrogen, their only by-product is water. Fuel cell facilities can, therefore, produce hydrogen when electricity is cheap, and later use that hydrogen to generate electricity when it is needed.� Green ammonia, using wind or solar power to produce it, is another avenue that Siemens is exploring. It has a £1.5m pilot project in Oxfordshire employing ammonia as a new form of energy storage. The potential advantage of ammonia over other emerging storage technologies is that volume production is already proven and scalable plus it can be transported using existing technology and hardware, even the existing gas DECEMBER 2019


distribution network. Getting to a carbon neutral, low cost, efficient energy system will require a huge commitment and investment. A local energy strategy, developed by Siemens, for three Local Enterprise Partnerships covering the southeast of England, makes clear the scale of commitment; it identified an investment requirement from both the public and private sector of £14 billion. The strategy identifies 18 key projects across five themes. “We have identified real projects which can get off the ground,” says Ennis. “But it needs a collaborative effort from the public and private sector. These are projects which you can learn quickly from and scale up. To decarbonise you have to do it at scale – nothing will change at the pace it needs to if you only take small steps.”

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51


ENERGY

Are we there yet? The challenges on the Road to Zero 52

Gavin Bailey, Sustainable Future Transport Lead at Eunomia, discusses alternative transport solutions and the current state of play in the UK’s transport infrastructure WRITTEN BY

DECEMBER 2019

GAVIN BAILE Y


53

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ENERGY

T

he Department for Transport’s Road to Zero policy, released last year, outlined the UK’s ambitions to be at the forefront of the

design and manufacture of zero emission

vehicles, with the aim for all new cars and vans to be effectively zero emission by 2040. A year on from these commitments, the market share for new battery electric vehicle (BEV) registrations has almost doubled from 0.6% (2018) to 1.1% (2019). This seemingly small increase is a notable success in the context of the relatively flat growth in the BEV market share over previ54

ous years - that said, it also highlights the amount of action that needs to be taken in order to meet the 2040 target. The largest share of alternative-fuelled new vehicle registrations is for hybrid electric vehicles, at 6.8%. This would suggest that battery vehicles, despite the recent surge in interest in zero emission options, aren’t quite meeting the needs of those looking to switch over to cleaner vehicles. Earlier this year, a report published by Deloitte indicated that the adoption of BEVs continues to be hampered by concerns related to driving range, price and charging infrastructure. These concerns provide valuable insight into why consumers continue to favour the more estab-

DECEMBER 2019


“What we need to move towards an operationally – and environmentally – sustainable transport system is support for a solution which isn’t highly dependent upon a single mode of transportation” Gavin Bailey, Sustainable Future Transport Lead, Eunomia

lished plug-in hybrid electric (PHEV) and hybrid electric vehicles (HEV). PHEVs and HEVs offer greater range and less dependency on public charging networks thanks to their back-up energy sources from fossil fuelled electricity generators and internal combustion engine drivetrains. The greater security and longer distances that these vehicles are able to cover make it likely that consumers will continue to select PHEVs and HEVs until more acceptable batteryonly ranges are on offer. This is not a new issue: vehicle range has long been a problem when it comes to BEVs. w w w.e ne rgydi gi ta l. com

55


ENERGY

“A more holistic approach to this problem requires the overall reduction in the number of vehicles on the road and decarbonisation of the remaining fleet� 56

Gavin Bailey, Sustainable Future Transport Lead, Eunomia

DECEMBER 2019

Some manufacturers claim to have achieved ranges of 200 miles and above on a single charge. However, under real-world driving scenarios BEVs have been found to achieve ~80-90% of their stated range. Such discrepancies increase driver range anxiety; until next-generation batteries, which promise ranges of 300 miles and above, are available, the only way to allay these fears is to address range issues with an extensive network of rapid chargers. The UK charging network currently comprises more than


CLICK TO WATCH : ‘NATURAL CAPITAL - WHAT’S THE PROBLEM?’ 57 25,000 charging points nationwide.

zero-emission vehicle future, we

However, grid capacity still poses an

need to think beyond the concept of

issue, often requiring upgrades to

the car. Switching all vehicles on UK

the local energy grid infrastructure to

roads over to battery power would

support connections and meet

address tailpipe emissions – but it

energy demand. While smart

wouldn’t solve the issue of fine

charging systems can provide a

particulate matter (PM2.5, solid

means to manage the electricity

particles 1/40th the diameter of a

demand for charging vehicles

human hair) which originate from

against the grid supply, and alleviate

brake, tyre and road wear. Such

the pressures of a widescale electric

sources have been found to generate

switchover, large energy distribution

more than half of the total PM2.5

improvements are still required.

from transport.

It is becoming apparent that, in order to move the UK towards a

Based on our current understanding of vehicle emissions, the capabiliw w w.e ne rgydi gi ta l. com


ENERGY

ties of BEV, and the energy genera-

which will in turn protect natural

tion and distribution network, it is

capital and avoid the embedded

becoming apparent that BEVs are

carbon emissions associated with

not a panacea for our transport

road construction.

woes. A more holistic approach to

58

Reducing motorised travel demand

this problem requires the overall

has never been an easy task. There

reduction in the number of vehicles

are a multitude of barriers to con-

on the road and decarbonisation of

sumers choosing to make the switch

the remaining fleet. This will have a

to more sustainable travel which,

direct and immediate impact on

combined with pushback from the

vehicle emissions, and decrease the

automotive industry, can make it

potential peak electricity demand.

difficult to progress the transition to

Moreover, a reduction in traffic

cleaner transport. The advent of new

volumes on the road network will

technology will undoubtedly make

reduce congestion, resulting in less

this transition smoother – new

of a requirement for road building –

solutions like mobility-as-a-service,

“Under real-world driving scenarios BEVs have been found to achieve ~80-90% of their stated range. Such discrepancies increase driver range anxiety” Gavin Bailey, Sustainable Future Transport Lead, Eunomia DECEMBER 2019


59

which enables connected end-to-

through transport users challenging

end journeys through a single

their own choices, and trying

ticketing solution, and micro- and

something else on offer. At an

e-mobility solutions (such as e-bikes

organisational and governmental

and e-scooters) are just some of the

level, it requires decision makers to

emerging technologies on offer.

move towards long-term intelligent

What we need to move towards an

and adaptive design.

operationally – and environmentally – sustainable transport system is support for a solution which isn’t highly dependent upon a single mode of transportation. On the individual level this can be achieved w w w.e ne rgydi gi ta l. com


T O P 10

60

DECEMBER 2019


Most reputable companies Energy Digital takes a look at the CSR programmes of the world’s most reputable companies, according to Global RepTrak 2019 WRITTEN BY

MARCUS LAWRENCE

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61


T O P 10

CEO

VOLKMAR DENNER

€78.5bn REVENUE IN EUROS

HQ

GERLINGEN GERMANY

62

10

Bosch ENGINEERING

Engineering titan Bosch is committed to applying its cutting-edge innovations to sustainability and ethical industrial growth. Internally, it is aiming for climate-neutrality across its direct, global sphere of influence in 2020, with a view to continually improving its climate protection endeavours through to 2030. It has also established a fresh company vision, “New Dimensions – Sustainability 2025”, which lays out a series of ambitious sustainability goals to be realised by 2025. The six-pronged strategy covers the length and breadth of sustainability and CSR focuses, and is sure to have a major, positive impact on Bosch’s environmental and societal impacts

DECEMBER 2019


CEO

REED HASTINGS

$15.79bn REVENUE IN US DOLLARS

HQ

LOS GATOS CALIFORNIA

09

63

Netflix ENTERTAINMENT

Famously reticent and ubiquitous streaming firm, Netflix, broke into Global RepTrak’s top 10 for the first time in 2019. While the intricacies of its CSR programmes are closely guarded, it noted in 2017 that it had made significant progress in its reduction of electricity use and boosted application of renewable energy sources. The Global RepTrak report added that its decision, following allegations of sexual misconduct spanning decades, to remove Kevin Spacey from the wildly popular House of Cards was indicative of Netflix’s dedication to doing what’s right by society despite the impact it could have on one of its leading shows.

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PURPOSE LED, PERFORMANCE DRIVEN

The most comprehensive sciencebased animal nutrition solutions, intelligently scaled to solve the sustainability and commercial challenges we face in transforming how we feed the world. Stay connected at dsm.com/anh @dsmfeedtweet dsmanimalnutrition linkedin.com/showcase/dsm-animal-nutrition-and-health/


T O P 10

CEO

FLORENT MENEGAUX

â‚Ź22.03bn REVENUE IN EUROS

HQ

CLERMONT-FERRAND FRANCE

08

65

Michelin MANUFACTURING

French tyre manufacturer Michelin redesigned its sustainable development governance strategy in 2017 to ensure its values and goals would be reflected across the group. Internal committees focused on the environment, human rights, ethics and sustainable mobility regularly review progress on the firm’s exhaustive 2020 ambitions across its supply and value chains. The company has also promoted employee awareness of its sustainable development commitments, ensuring the ethos is present and enacted by staff from the bottom to the top.

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T O P 10

CEO

FUJIO MITARAI

¥3.4trn REVENUE IN YEN

HQ TOKYO JAPAN

66

07

Canon IMAGING & OPTICAL

In 1988, Japanese imaging and optical products manufacturer Canon adopted the corporate philosophy, Kyosei: “the aspiration to create a society in which all people, regardless of race, language or culture, harmoniously live and work together for the common good into the future”. Inter-industry sustainability partnerships, an ongoing expansion of its medical business to ensure its innovations reach patients, enablement of smart city infrastructure through cutting-edge optical technology, and advancing the development of semiconductors for the benefit of almost all modern tech, are just a handful of examples of how Canon is strategically driven towards social and economic betterment.

DECEMBER 2019


CEO

KENICHIRO YOSHIDA

ÂĽ8.6trn REVENUE IN YEN

HQ TOKYO JAPAN

06

67

Sony ELECTRONICS

Sony is an old hand at sustainability and CSR. Having established the Sony Environmental Conference in 1976, it subsequently released its debut environmental report in 1994, followed by its first CSR report in 2003. With the view that the corporate world cannot survive without the natural world, Sony is a member of the RE100. It is also committed to slashing CO2 emissions from its operations (since 2016, the cumulative reduction in emissions through the use of renewables has hit 238,000 tonnes), drastically reducing the waste it creates, protecting and bolstering biodiversity at its sites and cutting the emissions of its logistical processes

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Supply Chain Efficiency Demands a World-Class Supplier.

Put Your Trust in a Vertically Integrated Partner. Committed to Sustainability. Driven by Innovation. Graphic Packaging International is an integrated supplier of paperboard, cartons and machinery. We deliver packaging solutions and machinery systems using state-of-the-art technologies. Brand owners around the globe rely on us for our unwavering focus on quality and efficiency. Our products are made from paperboard, a recyclable material and made from renewable resources. When you choose Graphic Packaging International, you’re making a sustainable choice for the environment and your business. Ask us about our alternative paperboard solutions to plastic shrink film and rings. Learn more at graphicpkgeurope.com

Š2019 Graphic Packaging International the wholly-owned operating subsidiary of Graphic Packaging Holding Company (NYSE: GPK)


T O P 10

CEO

SATYA NADELLA

$125.8bn REVENUE IN US DOLLARS

HQ

REDMOND WASHINGTON

05

69

Microsoft TECHNOLOGY

As a technological powerhouse, it’s no surprise that Microsoft’s sustainability and CSR strategies are rooted in enabling people through tech. The breadth of its CSR programmes is staggering, and they include but are not limited to: offering the tools to upskill people for the digital age; infusing its products with robust cybersecurity capabilities in defense of privacy as a fundamental human right; evaluating and enhancing the sustainability of its sites and product chains; and conducting a range of philanthropy programmes whose focuses range from empowering nonprofits with the latest tech (such as disaster relief organisation Team Rubicon) to enhancing the economic growth of its native Washington.

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T O P 10

CEO

KASPER RØRSTED

€21.92bn REVENUE IN EUROS

HQ

HERZOGENAURACH GERMANY

70

04

Adidas APPAREL

Infused with the knowledge that sport promotes health, both physically and psychologically, along with its wider strategy of “Creating the New”, Adidas’s 2020 Sustainability Roadmap is focused on sustainable innovations along sport value and supply chains. Its targets, spread between priorities for its products and people, strive to maximise the sustainability of manufacturing and logistics, and empower workers across its operations with the tools to both drive value for the business whilst feeling appreciated and secure.

DECEMBER 2019


CEO

ROBERT IGER

$59.43bn REVENUE IN US DOLLARS

HQ

BURBANK CALIFORNIA

03

71

Disney ENTERTAINMENT

Owner of practically everything you ever enjoyed as a child, Disney is a stellar example of how a powerful CSR programme is a reassurance to those concerned for the stewardship of such things. The company’s 2018 CSR report highlights the extensive work it conducts across environment, healthy living, and volunteering. It is on-track to meet its 2020 targets – which themselves have regular reviews for their validity and utility – in each area. One of its 2018 targets, to maintain potable water consumption at 2013 levels, was smashed as the firm reduced its consumption by 5.8% compared to the 2013 baseline.

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T O P 10

CEO

0000

NIELS B. CHRISTIANSEN

YEAR FOUNDED

KR39.9bn

$0.0bn

REVENUE IN DANISH KRONER

REVENUE IN XXXXXXXXX DOLLARS

HQ

BILLUND DENMARK

72

02

0,000 NUMBER OF EMPLOYEES

LEGO TOY PRODUCTION

In LEGO, we have not only one of the world’s most recognised toy brands but also the most reputable. In recent years, LEGO’s selfreflexive sustainability strategies have inspired it to develop LEGO bricks made from polyethylene produced through sustainably source sugarcane. This, a vital step towards its commitment to its products being made 100% sustainably, is in addition to its expansive CSR initiatives. Among these, LEGO donated US$100mn to support children affected by the Syrian and Rohingya crises, along with refugee children in Bangladesh, Jordan and Lebanon, in partnership with Sesame Workshop, BRAC, the International Rescue Committee, and NYU’s Global TIES for Children.

DECEMBER 2019


73

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T O P 10

74

CLICK TO WATCH : ‘PERPETUAL PLANET: LIVING LABORATORY’

DECEMBER 2019


CEO JEAN-FREDERIC DUFOUR 0000 YEAR FOUNDED

$4.6bn REVENUE IN US DOLLARS $0.0bn REVENUE IN XXXXXXXXX DOLLARS

HQ

GENEVA SWITZERLAND

0,000 NUMBER OF EMPLOYEES

01

Rolex MANUFACTURING

In line with the ethos of founder Hans Wilsdorf (who viewed extreme locales, and their explorers, as ideal quality testers for Rolex’s watches), Rolex supports the work of modern-day explorers – namely those exploring ways to “make the planet perpetual”. Under the Perpetual Planet strategy, Rolex is partnered with National Geographic to support scientific research of extreme environments as a means to better understand life-supporting systems, and its Awards for Enterprise have been honouring exceptional pioneers in environment, exploration, science, health, cultural heritage and applied technology for over 40 years.

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75


EVENTS & A S S O C I AT I O N S

Energy Digital runs down some of the biggest upcoming energy and sustainability events from around the world

27–29 JAN 2020 13–16 JAN 2020

World Future Energy Summit 76

European Gas Conference

[ VIENNE MARRIOTT HOTEL, VIENNA, AUSTRIA ] Hosted by OMV, the European Gas

[ ABU DHABI, UAE ]

Conference brings together decision

With a projected 33,500 attendees

makers from the biggest players in

from 170 countries and over 800

Europe’s gas market, with the 2020

exhibitors, the World Future Energy

event set to feature talks on increasing

Summit is surely one of the biggest

LNG supplies in Europe, working more

and most influential global events for

closely with the European Commission,

future energy. Covering energy,

the implementation of technologies to

water, eco-waste and smart cities,

increase hydrogen production rates,

the event’s confirmed speakers thus

and much more. Confirmed speakers

far include: Daniel Hanna, Global

include, among others: Rainer Steele,

Head of Sustainable Finance at

CEO of OMV; Edward Winter, Managing

Standard Chartered; Elle Runton,

Director of Blackrock; Andreas Schier-

Senior Project Manager for Rethink

enbeck, CEO of Uniper; and Oleg

Plastic, Emirates Nature at WWF;

Aksyutin, Deputy Chairman of the Man-

Raman Nanda, CEO of SoftBank

agement Committee and Head of

Energy; and many more.

Department at Gazprom.

DECEMBER 2019


EDITED BY

MARCUS LAWRENCE

17–19 FEB 2020

4–5 FEB 2020

Fossil and Renewable Energy – Fourth International Conference [ HOUSTON, TEXAS, USA ]

edie Sustainability Leaders Forum 2020

The United Scientific Group’s F&R

[ LONDON, UK ]

experts from around the globe to share

The edie Sustainability Leaders Forum

innovations in the energy sector, and

is set to host over 300 sustainability

spur change for the better in global

leaders from CEOs and sustainability

energy markets. Over three-days,

directors to policymakers and NGOs.

thought leaders, academics, engineers

The forum includes global names like

and business executives will speak

Unilever, Coca-Cola, P&G, NG, AXA and

about current trends, emergent tech-

more. The event is organised by edie, a

nologies, fresh strategies to tackle

sustainable business media organisa-

challenges in energy industries around

tion which provides research and

the world and how new paradigms will

reports for sustainability professionals.

reshape the energy landscape. Keynote

It also organises industry awards which

speakers will include: Zhifeng Ren from

recognises those who are “redefining

the University of Houston; Andrew Bar-

what it means to be a sustainable, eth-

ron, Director of the UK’s Energy Safety

ical and responsible business”. The

Research Institute (ESRI); Sibudjing

awards include categories such as con-

Kawi of the National University of Sin-

sultancy of the year, carbon reduction,

gapore; Daniel Su from the National

energy efficiency, rising sustainability

Institute of Occupational Safety and

star and sustainable supply chains.

Health, Philadelphia; and many more.

Energy conference gathers academic

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77


EVENTS & A S S O C I AT I O N S

26 MAR 2020

The Sustainability Summit 2020 [ LONDON, UK ] Hosted by The Economist, the Sustain78

28–30 APR 2020

primarily on the need for governments

Electric and Hybrid Vehicle Technology Expo

and institutions around the globe to

[ STUTTGART, GERMANY ]

significantly upscale efforts to decar-

The Electric and Hybrid Vehicle Tech-

bonise industries and drastically cut

nology Expo (EHVTE) in Stuttgart will

emissions to keep global warming

offer attendees the chance to hear

below 1.5°C. The day-long event will

from and speak with over 450 manu-

cover the impacts of sustainability

facturers and service providers from

goals on economic growth, the current

across the hybrid, electric vehicle (EV)

progress toward the UN’s Sustainable

and battery supply chains. Offering the

Development Goals, the impacts of

chance to glean insights from industry

environmental issues on mental health,

leaders on the latest innovations and

and prospective policies that could

solutions, EHVTE promises to be one

help turn the tide against carbon emis-

of the best destinations for industry

sions and climate change.

players in 2020.

ability Summit 2020 will be focused

DECEMBER 2019


13–14 MAY 2020

All- Energy Exhibition Conference 2020

18–20 MAY 2020

[ GLASGOW, UK ]

Cleantech Forum Europe

Glasgow’s All-Energy Exhibition and

[ LUXEMBOURG, LUXEMBOURG ]

Conference strives to enable the UK

The 16th annual Cleantech Forum

renewable low carbon energy commu-

Europe, set over three days, brings

nity “to interact, conduct business,

together the biggest players in the

network and learn, whether face-to-

clean technology space, along with

face or online”, according to the

government representatives and

organisers. Held annually in Scotland,

investors, for discussion, networking

the event brings together a total audi-

and opportunities to strike new part-

ence of around 7,000 and promises to

nerships. Keep an eye out for updates

be a must-attend conference for any

on speakers and the event’s pro-

energy professional.

gramme in the coming months.

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79


80

MCDERMOTT: LEADING THE WAY IN THE LNG MARKET WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

RYAN HALL

DECEMBER 2019


DLV108 offshore Western Australia for Ichthys project

81

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MCDERMOTT

Mark Lowman, VP for Projects and Operations in Asia Pacific at McDermott, discusses the company’s key differentiators and innovations in the increasingly competitive LNG market

O

Founded just short of 100 years ago, global engineering, procurement, construction and installation giant McDermott

is no stranger to evolving with the times. As global energy markets shift away from coal, McDermott 82

is truly capitalising on its longstanding liquified natural gas (LNG) expertise. Mark Lowman, Vice President for Projects and Operations for the company’s Asia Pacific (APAC) operations, believes McDermott adds great value to the market. “McDermott is one of the most experienced engineering and construction firms in the industry,” Lowman says. “We’ve been serving the LNG market for quite a few years; we built the first LNG regasification import terminal in the United States. Over the years, we’ve developed our processes and technologies with the goal of benefitting our customers. These include: new methods of liquefaction, tank installation, BTU (British thermal unit) reduction, and other proprietary processes.”

DECEMBER 2019


QMW fabrication facility, Qingdao, China

83

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MCDERMOTT

84

“OVER THE YEARS, WE’VE DEVELOPED OUR PROCESSES AND TECHNOLOGIES WITH THE GOAL OF BENEFITTING OUR CUSTOMERS”

In APAC, where demand for LNG is spiking across its multifarious territories, innovative projects are front of mind. “Global demand is on the rise, with countries like China switching from coal to natural gas, and India following suit along with other countries. For contractors such as McDermott, that’s obviously good for business, but we have to meet that demand and advance our technologies to be able to offer our customers

Mark Lowman, Vice President, Projects and Operations, Asia, McDermott

a cost-effective solution that brings gas to the market quickly,” he says. “With 60 years’ experience in the sector, we think our expertise gives us an edge

DECEMBER 2019


CLICK TO WATCH : ‘THE NEW MCDERMOTT’ 85 and makes us a leader in LNG. But

sustainability. “The customer will have

what’s great about this is that LNG

constraints around what they can

offers natural and clean energy; it’s

develop and we, in turn, inherit those

an abundant bridge fuel to more

constraints,” he says. “In terms of

renewable energy sources. Most

increased sustainability, along with the

importantly, the key differentiator for

work we conduct with customers,

McDermott is that we can perform

we are also working on a number of

an entire LNG project from start to

initiatives.” One of those initiatives,

finish, from site selection concept

known as NET Power, is being realised

right through to the tank.”

through a partnership between

In addition, Lowman says that

McDermott, Exelon, 8 Rivers and

McDermott’s strategy is keenly defined

Occidental. “NET Power is focused

by the company’s close collaboration

on developing a new natural gas power

with customers, particularly in terms

technology that produces low-cost

of environmental action and enhanced

electricity while emitting zero carbon w w w.e ne rgydi gi ta l. com


SPECIALISTS IN GAS, WELDING AND SAFETY SOLUTIONS

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LEARN MORE


OUR LONG-TERM PARTNERSHIP WITH MCDERMOTT Leeden NOX began working with McDermott, when McDermott first began their operations in Batam, Indonesia in the 1970s. Today, Leeden NOX is honoured to be the partner of choice for McDermott, for their gas, welding and safety requirements. Our gas division first began supporting McDermott in their gas requirements at their Singapore facilities in the early 1970s. We extended this collaboration to McDermott’s yard in Batam, Indonesia thereafter with gases initially being sent from Singapore until we established PT National Industrial Gases Indonesia (PT NIG). Today, we are a total gas solution partner to McDermott in Batam, where we supply a myriad of gases that caters to McDermott’s cutting needs (namely dissolved acetylene, compressed natural gas and oxygen) and stringent welding requirements (namely shielding gases like compressed carbon dioxide, liquid argon and compressed nitrogen). Over the years, these gases play a significant role in the production process of topside platforms and jackets for their clientele, which are used in some of the world’s harshest environment today. PT NIG recently launched the San Arc™ welding shielding gas to increase welding productivity and deliver significant proven cost savings for mild steel, stainless steel, duplex stainless steel and titanium welding requirements. In areas where innovative welding solutions are needed, Leeden NOX is able to formulate unique San Arc™ gas mixtures for specific or special materials. Our wide range of industrial gases are often used in tandem with Leeden NOX’s welding filler metals, welding and cutting equipment, to deliver the best-in-class welding and cutting performance. As the choice provider of welding and cutting equipment to McDermott, McDermott recently invested in state-of-the-art Miller XMT 350 FieldPro™ & ArcReach SuitCase 12 wire feeders for their yard operations. When used together as a system, the Miller XMT 350 FieldPro™ & ArcReach SuitCase 12 wire

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emissions. This is based on an

“We’re looking at modifications for

innovative approach to carbon capture

fuel specifications, particularly with

and, in our view, has the potential to

gasoline octane,” says Lowman.

revolutionise the power industry,”

Lummus Technology, owned by

comments Lowman. As the construction

McDermott through the merger with

contractor for the project, McDermott

Chicago Bridge & Iron (CBI) in May

has already built the pilot plants in

2018, offers a product known as

La Porte, Texas, where the tech will

AlkyClean, which increases the octane

be put through its paces.

content of gasoline. It recently won the

Another initiative the company is

Environmental Protection Agency’s

enacting is called Clean Fuels—a

President’s Award. Lummus is also

response to combustion engines

integral to another sustainability-centric

becoming lighter and capable of

initiative: Chevron Lummus Global,

exerting higher compression ratios.

a joint venture between McDermott

NetPower w w w.e ne rgydi gi ta l. com

89


MCDERMOTT

“WITH 60 YEARS’ EXPERIENCE IN THE MARKET, WE THINK OUR EXPERTISE GIVES US AN EDGE AND MAKES US A LEADER IN LNG” Mark Lowman, Vice President, Projects and Operations, Asia, McDermott 90

CLICK TO WATCH : ‘INPEX ICHTHYS LNG PROJECT’

DECEMBER 2019


91

E XE CU T I VE PRO FI LE

Mark Lowman Mark Lowman is an accomplished, highly resourceful Executive Management professional with a wealth of experience in managing multi-billion dollar construction projects in the Oil and Gas industry from inception to delivery. Prior to his career in the oil and gas industry, Mark had a successful naval career moving from the ranks to Lieutenant Commander. Mark has been with McDermott International Inc. for seven years in a variety of roles, including as the Director of Fabrication in Batam, Indonesia, Senior Director of Commercial Asia Pacific, and Vice President of Project Execution in both Asia Pacific and in Houston. Marks holds a Master of Business from Deakin University and has degrees in Nuclear Engineering, Naval Science and Operational Studies, from Britannia Royal Naval College and Royal Naval College Greenwich.

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PROFAB

Completion & Production Solutions

We Power the Industry that Powers the World Established in 1998 and located in Batam, Indonesia. Profab is a recognized leader in the supply and manufacture of equipment for the Oil and Gas industry, Specialising in the manufacture of; Subsea equipment & Mooring Systems Process Modules, Skids & Well Head Platforms Pressure Vessels and Heat exchangers

Learn more

www.nov.com +62 778 413 250


and Chevron focused on helping

this philosophy has yielded modern

refiners produce high-quality transpor-

load transfer systems, reusable pallets

tation fuels. “The portfolio under this

and onshore modularization – an

initiative helps our customers maximise

increasingly important factor in location

every barrel of crude oil into higher-val-

selection for new plants, refineries and

ue products,” says Lowman. “That

the like. “We also have a digital twin,

means minimising waste and maximis-

GeminiXD, which enables customers

ing a limited resource.”

to reduce waste by offering a single

These efforts to mitigate the

source of truth,” Lowman says. “It has

environmental impacts of its projects

a nickname, Design Twin, and it consists

are ingrained in a sustainable design

of a software suite that provides 3D

philosophy implemented at every level,

design and modelling capabilities.

cutting emissions without negatively

It integrates inflight, outfield data from

affecting the bottom line. Internally,

different sources and it pulls all that

CLICK TO WATCH : ‘OPTIMIZING SUBSEA DESIGN SOLUTIONS’

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93


MCDERMOTT

AllAlloy Dynaweld Pte Ltd | T +65 6897 8878 | F +65 6897 7006 E sales@allalloy.com | W www.allalloy.com S I N G A P O R E • M A L AY S I A • I N D O N E S I A • M YA N M A R

MIS S IO N : Delivering high-end filler metals, welding systems, heating systems, accessories and consumables that will increase our customers’ productivity. Be our customers’ preferred partner by providing complete welding solution. MARINE, OIL & GAS FABRICATORS OFFSHORE PIPE LAYING CONSTRUCTORS POWER PLANT AND PETROCHEMICAL CONSTRUCTION WIND TOWER FABRICATORS Building our brand to mean creativity, reliability, technical superiority, friendliness and honesty to all our customers, partners and stakeholders.


95 together to become a single source of truth for design, procurement, fabrication and construction before handing over to the customer.” Lowman enthuses that, as a contractor, Gemini adds significant value to McDermott’s operations through increased efficiency and minimisation of errors. With such a deep portfolio across so many territories, incremental upgrades to efficiency resonate

“IN ASIA, WE ALSO SUPPORT THE REST OF OUR GLOBAL OPERATIONS IN TERMS OF ENGINEERING. WE HAVE A TERM FOR IT, MOPEX, THE MULTIOPERATIONAL PROJECT EXECUTION MODEL”

throughout McDermott’s operations. APAC, Lowman’s ward, represents one of McDermott’s most diverse profiles. “The region is unique in that

Mark Lowman, Vice President, Projects and Operations, Asia, McDermott w w w.e ne rgydi gi ta l. com


MCDERMOTT

every country is different,” he explains. “And that brings various challenges and opportunities. For example, in India, we’re currently executing two subsea projects on the east coast—one for Reliance Industries, the other for ONGC (Oil and Natural Gas Corporation). We’re designing the infrastructure and hardware for the seabed to enable us to pipe gas and hydrocarbons from the wellhead to the onshore terminal.” In addition, McDermott is conducting a tank-building project in a remote area 96

of the Philippines, a significant offshore platform project in Vietnam, and a further LNG endeavour, known as Ichthys, with INPEX in Australia. “We have a wide range and variety of works that we’re currently executing,” Lowman says. “In Asia, we also support the rest of our global operations in terms of engineering. We have a term for it, MOPEX, the multi-operational project execution model.” He offers a hypothetical example whereby a project for the North Sea would be executed in Asia, engineered out of the firm’s Kuala Lumpur office, supported by its Indian offices and manufactured at McDermott’s fabrication facility in Batam, Indonesia. “That’s DECEMBER 2019


the power of the company, being able to unite the strengths of each region across the globe,” Lowman says. Lowman adds that McDermott’s evolution and expansion are driven by an unerring commitment to the customer, a firm ear to the ground of the market and a global presence that informs and empowers itself. “Since we merged with CB&I in 2018, McDermott has become a very different company. We’re a much larger, technology-led and integrated firm, with a formidable presence in offshore and onshore energy markets. We’ve effectively gone from 13,000 employees to 32,000, and we’re able to perform entire projects in-house.” As McDermott continues to grow, that comprehensiveness is sure to be a key differentiator in the increasingly competitive LNG space. Given McDermott’s demonstrable prowess, it certainly appears ready for the challenge.

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98

Adopting an efficient approach in the energy space WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

RYAN HALL

DECEMBER 2019


99

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SAPURA ENERGY BERHAD

Raphael Siri, CEO of Sapura Drilling and SVP Performance & Risk for the Sapura Energy Group, discusses the importance of generating long-term value from its staff through a focused, people management approach

A

s the world’s largest tender rig owner and operator, with nearly five decades of drilling experience in Asia, the Middle East,

Africa and South America, Sapura Drilling is used to 100

keeping up with the market and staying at the forefront of the latest industry trends. With a comprehensive continuous improvement strategy in mind, Raphael Siri, CEO of Sapura Drilling, believes that operating with an efficient approach remains the key ingredient to success. “We want to ensure that everyone is empowered to make the job as efficient as possible,” he says. “Efficiency comes with care. Our primary aim is to be proactive and put procedures in place that avoid incidents happening in the first place, including safety ones.” As a group, Sapura Energy places significant value on people development and has set up several training initiatives to develop its staff’s skills. “There are two components to training our staff in the Drilling business; offshore and onshore,” says DECEMBER 2019


1972

Year founded

Leader in tender-assist drilling

Winner

of multiple safety and performance awards 101

Siri. “In terms of offshore, we have a comprehensive training matrix that is mandatory. For example, if you don’t complete your survival training then you won’t be able to fly in the helicopter, which ultimately means you can’t work.” “Secondly, we require our workers to complete company-specific training that allows them to perform their jobs in the safest and most efficient manner,” he explains. “Some of the training includes permit-to-work, confined space and ethics and compliance. We also offer more specific technical w w w.e ne rgydi gi ta l. com


SAPURA ENERGY BERHAD

training based on an employee’s position that will benefit them on a daily basis.” Siri affirms that onshore workers also have a training matrix, albeit less structured. “It’s more centred around observing the changing market rather than training itself. For example, for an employee working in finance, they would attend a tax conference to uncover the latest trends in the areas most relevant to them. There isn’t one method that suits all – we tailor training based on company 102

and individual needs.” “As part of the Sapura Energy Group, Sapura Drilling also benefits from programmes run by the parent company,” explains Siri. “One of the most recent training programmes offered under the Sapura Energy Group was the Master of Business Administration conducted in partnership with MIT Sloan School of Management. Some employees are currently taking this programme and is just one of the examples of our versatile onshore training programme.” With its continuous improvement strategy at the forefront of decisionmaking, another area of focus for Sapura Drilling is the introduction of DECEMBER 2019

“We want to ensure that everyone is empowered to make the job as efficient as possible” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group


CLICK TO WATCH : ‘SAPURA SEMI-TENDER IN ACTION’ 103 technology. Automation is empowering companies in all industries to accelerate their operations. In terms of Sapura Drilling, this means enhancing safety processes too. “Automation allows us to preempt equipment failures and plan more efficiently,” he says. However, Siri affirms there are limitations to consider as the world begins to embrace new technology and transform operations. “One of the biggest challenges we face is that we don’t always work in countries where they have sophisticated phone systems and landlines. All our units run on a satellite,” he explains. w w w.e ne rgydi gi ta l. com


SAPURA ENERGY BERHAD

104

“But the world is changing. With all this

partner when seeking to form a long-

data at our fingertips now, we must ask

term business relationship. “The first

ourselves: ‘how do we generate the

thing I look for in a potential partner is

most value we can?’ Although gather-

their core values,” he explains. “They

ing data is a good strategy to have, if

have to be in line with ours in order for

you don’t do anything with it then it’s

the partnership to work. The corporate

just a waste of time.”

values have been our beacon for suc-

In a bid to expand operations, com-

cess. We are guided by honesty, trust

panies are increasingly looking to

and respect for all. We achieve our busi-

establish strategic partnerships with

ness objectives by being safe, agile and

one another to achieve mutual growth.

professional and continuously strive to

Siri points to what he looks for in a

meet our stakeholders’ expectations.”

DECEMBER 2019


“There isn’t one method that suits all, we tailor training based on company and individual needs” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group

The company’s tender rigs can be used for global operations in waters as shallow as 30ft to as deep as 6,000ft. Sapura Drilling uses two different types of Tender Assist Drilling rigs (TADs); a tender barge and a semitender rig. While both units can carry the same equipment, the semi-tender is capable of operating in deeper waters and in harsher environments. The TADs are usually stationed next to the platform, with its drilling package then lifted onto the platform. One of the major benefits of a TAD drilling rig

E XE CU T I VE PRO FI LE

Raphael Siri Raphael Siri is a people-oriented leader and a champion of care management philosophy. Under his leadership, Siri successfully maintained and nurtured a caring culture that helped the company weather the downturn with a team of dedicated and happy employees whom he regards as family. Siri emphasises goal-oriented performance and demands that people deliver on their promises through teamwork, adherence to policies and processes and continuous improvement. Siri has a strong cultural awareness thanks to his experience as a leader in nine different countries. He holds a Master’s in Applied Mathematics from the Université de Nice Sophia Antipolis.

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105


SAPURA ENERGY

Inspired imaginative design D’YAKIN is a client focused Organisation which specializes in comprehensive interior design, architecture, turnkey fit-out, construction and project management. Since our establishment in 1989, we have completed an extensive variety of projects and have built a strong relationship with large based of local and multi-national corporations. Learn More

dyakin.com


107 is the ability to self-raise, remove its own drilling package and then rig-up the same package on another platform, resulting in greater efficiency and sustainability for the clients. While the importance of operating sustainably is vital to all companies’ future development, Siri believes sustainability at Sapura Drilling extends further than the traditional meaning. “It’s about ensuring our employee’s lives are as sustainable as possible,” he explains. “Do we pay them correctly and are we developing their communi-

“The first thing I look for in a potential partner is their core values. They have to be in line with ours in order for the partnership to work” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group

ties in the right way? We have to train w w w.e ne rgydi gi ta l. com


SAPURA ENERGY BERHAD

C O M PA N Y FACT S

• Close to five decades of offshore drilling experience in Asia, Middle East, Africa and South America • Pioneer of semisubmersible tenderassist drilling rig

108

• World-class safety standard ­— longest safety running streak – nearly 14 years without a lost time injury

DECEMBER 2019


people properly and give them the knowledge to succeed long-term.” Siri adds that Sapura Drilling takes its sustainability initiatives on the financial and environmental side seriously too. “We’re not taking any risks that could materially hinder the company. As we operate in a range of countries with lots of employees, we have a duty of care,” says Siri. “We’re also trying to reduce our impact on the environment by questioning everything from the ground up to ensure we’re doing all we can.”

109

Looking to the future, Siri has a clear vision of the direction he aims for Sapura Drilling to be moving towards over the next few years. “We want to ensure we continue to develop into a sustainable and a reliable partner for our clients,” he summarises. “We also hope to grow in terms of our fleet, but this depends on mergers, acquisitions or newbuilds, which will be centred around the direction the market takes. Overall, we want to continue to be recognised worldwide. It’s about driving recognition and reliability as we move forward.”

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110

Total Solar: powering future horizons DECEMBER 2019


WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RYAN HALL

111

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

How Total is supporting the growth of the distributed generation of solar power across Southeast Asia, bringing the independence of sustainable energy to thousands of new customers

T

otal Solar Distributed Generation (DG) was formed in 2018, drawing on a decade-long commitment to solar power

stretching back to 1972, when parent company Total set up Total Énergie Développement (TED), 112

which engineered its first solar panels. Total Solar is now the leading provider of solar solutions for commercial and industrial customers with $2bn deployed worldwide and services customers that include global firms such as Siemens, Google, Toyota, Ford, Microsoft, FedEx and Walmart. Spearheading the company’s efforts to advance its global footprint in Southeast Asia, Total Solar Distributed Generation’s CEO (SEA) Gavin Adda brings a decade of experience in the industry from a previous role working on major projects for Samsung. “I could see big potential for the future here in Southeast Asia,” recalls Adda. “There are many islands with complicated terrain where it’s difficult to put a grid down. You’ve got great solar resources - and the exciting thing is that you can co-locate it and put solar where the usage is. DECEMBER 2019


113

1919

Year founded

100,000 Number of employees

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

“What’s happening with solar, especially on the rooftop side of the business, is that we’re flipping the model round. That disruption is the revolution that’s 114 happening in power” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA)

Instead of building a big solar plant in the middle of the desert and then arranging transmission and distribution before retail to a customer, you can put solar right on top of somebody’s roof, and cut costs and ease grid congestion at the same time.” Indonesia has more than 17,000 islands, and the Philippines over 7,000, in a part of the world where diesel is an expensive solution for generating power. Adda realised what a great opportunity this was to start a rooftop solar business. “When I got here, no one was doing this,” he remembers. “I created a startup which was merged into Total in 2017, and that has become Total Solar Distributed Generation, Southeast Asia.” Innovation has played a big part in Adda’s journey of developing a solar offering in Southeast Asia. “When I was joining the business, major companies such as BP, Shell and ourselves were taking a good look at renewables,” he reveals. With the core elements of businesses like these changing, it was important for Total to add new capabilities and become nimble in its approach. “I’d seen the same thing happening in

DECEMBER 2019


CLICK TO WATCH : ‘TOTAL, COMMITTED TO SOLAR ENERGY’ 115 the US with companies that had been

Adda notes a shift from a B2G

very successful at selling power to a

(Business to Government) to a B2B

utility or to a government,” he explains.

model boosting the number of custom-

“If you’re going to sell power in places

ers and requiring a new approach;

like Indonesia and Vietnam, you’ve

comparable to a phase the IT industry

only got one choice, sell to that one

went through 20 years ago when the

entity. There could be hundreds of

scope of the market grew for the likes

different developers trying to sell to

of Oracle and SAP. “I was part of that

that company, so that company gets

process of helping IT companies build

to push everyone’s price down. But

B2B capabilities,” he recalls. “It was

what’s happening with solar, especially

the same at Samsung building B2B in

on the rooftop side of the business,

the consumer electronics. We have

is that we’re flipping the model round.

the same dynamism at Total Solar DG;

That disruption is the revolution that’s

the passion to build a new business

happening in power.”

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

CLICK TO WATCH : ‘TOTAL SOLAR COMMITTED TO BETTER ENERGY’ 116 resources. Bringing that passion, drive

Bollore, Renault-Nissan and Danone

and focus has been really important for

think twice before signing up to a long-

our expansion in Southeast Asia.”

term contract with a firm that’s only

Adda points out this is something

two years down the track; there’s no

Total has been doing with power assets

chance that this company is going to

for the past century, and says it is

be around in 20 years, they’re going

what sets the company apart from

to be bought and sold multiple times.”

the newcomers. “We are, in our DNA,

Adda warns that while a solar system

a developer and operator of energy

can save 10-20% on your power bill

power assets,” says Adda. “Companies

over the contract lifetime, you really

are jumping into solar but they don’t

need a long-term partner to help build

actually have any power experience.

a safe system . “We build systems that

They’re not going to be around for 20

are safer and perform better for longer;

years; and most of our contracts are for

you really need to have somebody that

20 years. That’s why companies like

you can trust on your roof.”

DECEMBER 2019


Adda believes that solar generation

market, we see the opportunity for

is just the beginning. “Storage, energy

discounts between 10-30% and

efficiency and exciting new things are

then this drives a meaningful impact

coming that will enable independence

on our carbon footprint. We’ve done

for our customers.” Along with that

one project for a Total affiliate in

independence comes the chance to

Singapore with a 1.2MW rooftop,

create a sustainable model for power

which will be equivalent to them

generation, but to do that it has to be

planting 8,000 trees a year for 20

economically viable, Adda urges. “It will

years. That’s a massive impact and

be a sustainable business if it makes

among many interesting ventures for

sense. And for us that’s really about

Total. We’re now implementing solar

cost reduction,” he explains. “Most of

systems on 5,500 facilities around

our customers are focused primarily

the world, including more than 4,000

on investing in solar. Depending on the

service stations.”

117

E XE CU T I VE PRO FI LE

Gavin Adda Gavin Adda began his career in the early days of internet startups where he learned the value of a nimble approach to business. Experienced in tech, his previous sales roles at Oracle and Samsung underpin his skills in the B2B space. “I’m capable of taking a business, making sure that it’s reaching out, and making the right connections with corporate, commercial and industrial companies,” he confirms. Adda appreciates the power of digitisation as a transformative catalyst for business. A decade spent working in Solar for Samsung, solar panel manufacturer REC, and his own startup CleanTech Solar, leaves him well placed to improve Total Solar DG’s operations across Southeast Asia while driving the innovation that makes solar energy a commercial and sustainable proposition for the future.

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

Solar energy solutions for a greener earth SolarGy Pte Ltd is one of the leading professional system integrators of solar PV systems based in Singapore. We have over twenty years of experience in electrical installations and building architecture. Learn More


119 Total Solar DG also supports the

to realise its ambitions and are, says

Total Carbon Neutrality Ventures

Adda, the “fundamental bedrock” upon

(TCNV) fund - a $400mn initiative

which the business is being built.

aimed at reducing carbon footprint

Among these, SolarGy, based in

with clean/green energy. “We’re work-

Singapore is a veteran of the industry

ing with some of our partners on hybrid

working on a wide range of different

solar battery projects and passing

projects for the Singaporean govern-

them through the Ventures team to

ment. “We’re seeing more customers

help them with investment,” reveals

keen to make power purchase agree-

Adda. “It’s exciting that TCNV is aim-

ments (PPAs) rather than buy a solar

ing to bring on board companies with

system,” says Adda. “We’re work-

disruptive new technologies that we

ing with SolarGy to implement that

can implement in our own projects.”

approach and attract new customers.

Local partnerships in countries across

We are also exploring several partner-

Southeast Asia are vital for Total Solar

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

120

Total’s commitment to Solar “Over the next 20 years, electricity demand will increase faster than the demand for energy as a whole. In order to meet this growing need, tackle the challenges of climate change and comply with the International Energy Agency’s 2°C scenario, we have made it our ambition for low-carbon businesses to account for nearly 20% of our portfolio in 20 years. We are already actively

DECEMBER 2019

participating in the development of renewable energies, especially solar. With operations spanning the manufacture of highefficiency photovoltaic panels, ground-based power plants, decentralised systems, storage solutions and marketing to end-customers, we are present across the entire value chain and fast-tracking the deployment of solar technology.”


by Total, that supplies batteries to the transport and aviation sectors.” Adda laments that awareness of the fact that the cost of power from solar is cheaper than the grid is still low, but adoption is gathering pace. “We’re seeing the penny drop for companies in the US and Europe, and they’re now starting to implement through their supply chains too, leading to some very large projects. Across Southeast Asia, large projects are happening in one go. Previously, you would see maybe a $500,000 project happen, now we’re dealing with $30mn portfolios.” Working with Chandra Asri, the biggest petrochemical company in Indonesia, has been a real breakthrough for Total Solar DG. “It was the first rooftop PPA in the country. Up until then everyone was buying their power from the utility PLN,” says Adda. “We were up and running within three months and it shows what’s possible in Indonesia. The fact that we were able to find a solution for a plant with such sensitive machinery shows the capabilities of solar to make a difference to our industrial customers.” The company has also recently signed a contract to w w w.e ne rgydi gi ta l. com

121


T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

supply the biggest single-rooftop solar array in Thailand for a 7MW project. Elsewhere, in Cambodia, a solar storage hybrid project is underway on Koh Rong Sanloem island. “We will be taking that island off diesel, and providing clean power, to various resorts, leisure companies and surrounding villages,” he confirms. Total Solar is also providing rooftop solar systems for three shopping malls operated by Gaisano Capital in Luzon and the Visayas in the 122

Philippines. “We’re reaching out and growing awareness around the impact solar can have across a much wider community,” says Adda. With a combined capacity of 1.2MW, the resulting

“We build systems that are safer and perform better for longer; you really need to have somebody that you can trust on your roof” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA) DECEMBER 2019

carbon footprint reduction is equivalent to planting 3,500 trees each year. The photovoltaic systems are expected to cover over 30% of Gaisano’s power needs and will slash its energy bill by more than 15%. Southeast Asia provides one of the fastest growing global solar markets for Total, where the company is committed to providing cleaner, greener and cheaper power. Adda’s team is also


123

looking at Japan, Australia, Myanmar

into growing the people, the platform

and Vietnam - potentially huge markets

and the relationships that enable us

with growing populations and massive

to build a multi-billion-dollar business,

demand. “The challenge will be to

move the needle and make a positive

scale the business as quickly as the

impact with solar and renewables.”

market is scaling and develop our battery storage portfolio,” says Adda. “We’re expecting to double in size for the next four years, just to keep up with that growth. Total can make these long-term bets, and put the investment w w w.e ne rgydi gi ta l. com


124

Supply chain strategies in the energy sector WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CRAIG KILLINGBACK

DECEMBER 2019


125

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REC SOLAR

Josie Broome, Director of Procurement and Operational Excellence, discusses the success of her projects from an operational excellence standpoint

A

s a renowned leader in enabling complete commercial, public sector and utility-scale solar solutions, REC Solar has been in

operation for over 20 years and provided more 126

than 300MW of successful projects. Following its acquisition by Duke Energy in 2017, Josie Broome, Director of Procurement and Operational Excellence, believes there are a number of key factors that differentiate REC Solar from its rivals. “Duke Energy has brought stability and financial backing. There are several solar companies that don’t exist anymore, but Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides,” explains Broome. “The type of projects that we go after, in combination with the customers that we look for and how we implement those projects and source materials is very strategic and focused. We’re certainly not new to the game.”

DECEMBER 2019


127

1997

Year founded

150

Approximate number of employees

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The Right Partner for Your Project We focus on the North American Solar Industry with an emphasis on general contractors, subcontractors and facilities managers working on energy, commercial, industrial, residential and institutional project development. Our solar energy staffing experts understand your demand for proven industrial experience in every tradesperson we provide you, which is why we have been recruiting and hiring only the best people, matching them to your specific project needs. And if the tradespeople aren’t already located near your site, we’ll find local solutions or deploy travelers, no matter where you need them.

LEARN MORE

512-819-6200


CLICK TO WATCH : ‘REC SOLAR CUSTOMER STORIES – CAL POLY SAN LUIS OBISPO’ 129 Having come from an oil-oriented

observe how hard the work actually

background, Broome’s family owns

was and how difficult it is to earn money

a number of oil reserves, with part

that way. I believe that because of these

of its portfolio situated in the largest

early experiences, I learned that being

oil reserves in Utah within the Uintah

out in the elements, physical labor

Basin. “Not only did I grow up with

through the seasons, and being away

my dad and all of his siblings as they

from family is a tough job. The appre-

made a living in the oil and gas indus-

ciation I have for the men and women

try, our family history is also rooted for

out there building America has shaped

generations back to one of the largest

my view, work ethic, and approach to

oil reserves in the US,” she explains.

projects while always keeping the field

“I watched my dad and his brothers

in the forefront of my mind.”

work on mainline pipelines, and when

Having overseen dozens of projects

I was 20, I decided to work with them.

during her time at REC Solar, Broome

From this experience, I was able to

is specifically proud of a recent project w w w.e ne rgydi gi ta l. com


REC SOLAR

130

DECEMBER 2019


in Colorado which is the largest rooftop in the state. The project saw the installation of 17,000 panels spanning 19 acres and boasting a capacity of 6MW. “It was a real team effort. We worked together to secure the products that were used, found ways to reduce costs and achieve higher productivity in the field,” she explains. “Our typical approach is defined prior to the beginning of the project working directly with the field on setting up workstations, collaborating with them

“Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar

on their instructions and providing guidance on the sequence of work. Every project is unique, it’s up to us to look for ways to maximize efficiency in material handling, loading the roof, and how the crews move throughout the site. We track all of that.” Broome has worked on a diverse and broad range of projects and her role is to influence them from a supply chain and operational excellence perspective. “In my previous roles at REC, I managed projects and project teams directly; from schools to hotels, cash to financed, on carports, roof, and the ground. The variety, volumes and regions are vast, however there are still opportunities to learn and improve.” w w w.e ne rgydi gi ta l. com

131


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With technology becoming influ-

it into a sequel database, and mix it

ential to the way businesses conduct

into Microsoft Power BI to display,

operations worldwide, REC Solar

dig and analyze,” says Broome. “On

has implemented platforms such as

the supply chain side, we create our

Procore, the world’s leading construc-

commodity position frequently and

tion management software, as well

look at supply and demand by utilising

as drawing on the help of Salesforce

Salesforce for pipeline and Procore

for its CRM and JDE Oracle for its

for active projects. From the opera-

financials. “We leverage all the data

tional excellence perspective, we’re

from those platforms and combine

using the field data that’s coming

E XE CU T I VE PRO FI LE

Josie Broome As part of her role as Director of Procurement & Operational Excellence, Broome provides dual strategic direction for the innovation, development and implementation of business applications, intelligence, processes, and other business initiatives to support culture growth around supply chain and continuous improvement. Having begun her career in the architecture, planning and engineering industry in 2003 as a Planner at RRM Design Group, she managed various development projects that ranged in complexity and size. In 2010, Broome joined REC Solar’s project management team and went on to lead the company’s mid-market and Hawaii Business Units. Moving into the procurement space in 2017, has allowed Broome to leverage her considerable experience leading teams through technology.

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133


REC SOLAR

134

DECEMBER 2019


“From the operational excellence perspective, we’re using the field data that’s coming from Procore to measure productivity and how and where we need to help the teams improve in the field” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar from Procore to measure productivity and how and where we need to help the teams improve in the field.” However, Broome understands that new technology such as Big Data should be treated with caution to circumvent the risk of overreliance. “Too much data can be really overwhelming, and you have to dig deep to figure out what the data is trying to tell you,” she warns. “For us, it’s about being very specific on what data we’re looking for and what we want the field to collect w w w.e ne rgydi gi ta l. com

135


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137 for productivity. We’re very specific

buys together,” she explains. “The

on what we want to achieve with cost

other strategy is the process of buying

reduction, and then we leverage that

different types of equipment and going

data to drive our supply chain forward.”

direct, they’re in the large-scale utility

With the industry constantly

space where we are a distributed

changing, Broome believes that by

generation. We have high transac-

working closely with Duke Energy’s

tional volume and communicate with

supply chain team, REC Solar can

our vendors weekly — it’s important

easily adapt to the sector’s changing

everyone’s on the same page.”

demands and has subsequently

Broome points to the importance

established two firm supply chain

of communication with other supply

strategies. “When there are any

chain professionals in the space, and

changes, both teams come together

key partners as a crucial component

to make decisions on the best ways to

for success. “We recently attended

leverage our volumes and make bulk

the annual Solar Power International w w w.e ne rgydi gi ta l. com


REC SOLAR

138

tradeshow in Utah. I believe that talking to other like-minded individuals in the industry is so important because it allows you to get a good idea of what the latest trends in the sector are as well as forming new connections and building lasting partnerships. It’s important to acknowledge our partners share our overall goals and help to ensure that we keep costs low for the customer, while maintaining quality on time.� Pointing to her upbringing, Broome dwells on how her early life and career DECEMBER 2019


“I’m inspired by innovation and visionaries, and I now understand that I need to be the leader that I want to see” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar

139

has shaped the influence she wants

is going to be based on how fast we

to have on others in the field. “I’m

can continue to adapt to the market

inspired by innovation and visionaries,

changes,” she notes. “Old ways of

and I now understand that I need to be

thinking, doing and being are not

the leader that I want to see. I’ve been

going to survive. We must stay ahead,

fortunate enough to have had some

act quickly and remain agile. I believe

pretty incredible leadership mentors

that being, nimble, performing quality

on my journey, and overcoming the

work and continuing to drive improve-

challenge of leadership is done by

ments will ensure we remain a leader

ensuring I’m the leader that I would

in the space.”

like and need.” With the future in mind, Broome has a clear vision of what she hopes her firm can achieve over the next few years. “Our future success w w w.e ne rgydi gi ta l. com


140

Driving the energy transition through innovation and community engagement WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

RYAN HALL

DECEMBER 2019


141

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S O L I S R E N E W A B L E E N E R G Y P T Y LT D

King Arthur, Executive Director at Solis RE, discusses how the renewable energy consultancy and project management firm drives powerful community-led projects in an evolving energy landscape

A

ustralia is in an interesting position when it comes to the energy transition. While the country, famed for its idyllic beaches

and unforgiving desert, is no stranger to sunlight, its 142

sheer size and lack of extensive transmission infrastructure are considerable limiters to the uptake of renewable energy systems. King Arthur, Executive Director at Solis RE, believes technological advances, alongside major shifts in international attitudes and local legislation regarding sustainability and renewable energy, mean that surmounting the challenge is increasingly possible. “Everyone is understanding of the fact that we can’t keep using fossil fuels. The Australian Government has adopted that to some extent, and the Victorian Government has embraced it,” he says. “The latter has legislated a target of 50% renewables usage in Victoria by 2030, which has given people confidence in the long-term focus.” Naturally, as with their contemporaries around the world, Victoria’s coal-fired plants DECEMBER 2019


143

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S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“You can’t keep putting solar into the system as it’s produced because you end up with a massive peak in the middle of the day when the sun’s shining, and obviously you don’t have any power at night” — King Arthur, Executive Director, Solis RE

144

DECEMBER 2019


CLICK TO WATCH : ‘CNBC – THE RISE OF SOLAR POWER’ 145

have found their days to be numbered.

of people have built big solar farms

While this shift towards renewable

in the sunniest parts of Victoria, the

energy facilities is a boon for the envi-

sunniest parts of Australia up in

ronment, the resultant job losses and

Queensland, but they don’t have the

need for reskilling workforces must

infrastructure to support it and they

be addressed with the same potency

don’t have the energy demand close

as the aforementioned infrastructural

to where they’re based. Therefore, you

challenges. Enter: Solis RE.

have to transmit the power over hun-

Co-founded by Arthur and long-time

dreds, if not thousands, of kilometres,

business colleague Michael Bugelly,

and you lose energy all the way along

also an Executive Director at the firm,

that transmission line,” Arthur explains.

Solis RE is shaking up the established

With this awareness at the top of the

methods by which Australian renew-

company, Solis RE focuses on areas

able energy projects take shape. “A lot

where there is tangible need and w w w.e ne rgydi gi ta l. com


S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“The number of jobs that will be created as a result of developing the Gippsland Renewable Energy Park will be between 1,200 and 1,500 during the construction phase, with many hundreds of ongoing jobs over the next 10 to 15 years” — King Arthur, Executive Director, Solis RE

relatively easy access to the grid, and maximises the opportunity by bringing local communities on board. The company recently signed an agreement to develop the Gippsland Renewable Energy Park – a huge undertaking worth an estimated AU$2bn that also serves as the perfect example of its offering’s forward-thinking, community-driven and holistic nature. The project is a huge undertaking that will require a significant amount of land. “It’s about 23km2 in terms of

146 E X ECU T I VE P RO FI LE

King Arthur King Arthur has significant experience in retailing and manufacturing and expertise in corporate strategy, business transformation, procurement and contract negotiations. He has 15 years’ experience in the retail industry, including as General Manager Supply Chain of Myer. Arthur has run his own management consulting business since 2002, working in Asia, Europe, the US and Australia. Over the past 35 years, he has developed Strategic Supply Chain and Procurement teams for Myer, RACV, IAG, AAMI, Mitre 10 and Australian Paper. He has brought his procurement and project management skills to the solar industry, where he has developed commercial relationships with major solar manufacturing companies and specialist EPC groups.

DECEMBER 2019


space, and for something like that to

purchasing. Along with these arrange-

get dropped into a community you

ments, the company has committed

obviously need to have a lot of commu-

to a community benefit programme

nity support and benefit,” says Arthur.

funded by the park, and the allocation

“We went out to all of the large business

of those funds will be decided by the

and community groups before we even

community. The factor that brought

considered what was going to be in

local government support on board,

the park to hear about their issues and

however, was the promise of an injec-

discuss how we could address them.”

tion of jobs for the local economy. “The

Those issues, he elaborates, include

number of jobs that will be created as

the cost of power and the potential for

a result of developing the Gippsland

jobs. Solis RE is thus arranging special

Renewable Energy Park will be

deals with local businesses for power

between 1,200 and 1,500 during the 147

E XE CU T I VE PRO FI LE

Michael Bugelly Michael Bugelly is a Chartered Accountant who began his career with KPMG. He has experience providing advice on all stages of a business life cycle, business growth strategies, valuations, assisting with the purchase and sale of businesses and corporate restructuring. Bugelly is an Executive Director of The Rufus Partnership Pty Ltd, a corporate advisory firm with extensive experience advising on agribusiness and renewable energy projects. He has also been involved in the not-for-profit sector, providing professional services including corporate governance and investment guidelines and was a director of Oz Child for 13 years. He has a Bachelor of Commerce (University of Melbourne) and is a Fellow of the Chartered Accountants Australia and New Zealand.

w w w.e ne rgydi gi ta l. com


S O L I S R E N E W A B L E E N E R G Y P T Y LT D

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“The Victorian government has set a target of 50% renewables usage in Victoria by 2030, and that’s given people confidence in the long-term focus” — King Arthur, Executive Director, Solis RE

149 construction phase, with many hun-

because you end up with a massive

dreds of ongoing jobs over the next

peak in the middle of the day when the

10 to 15 years,” says Arthur.

sun’s shining, and obviously you don’t

With the weight of local businesses

have any power at night.” Batteries

and Federal and State government

can moderate the flow of electricity to

members behind it, there is plenty

the grid, minimising the impact of mid-

of excitement in the potential for the

day peaks and night-time troughs. For

completed Gippsland project. The

the wider project, Arthur asserts that

first phase of the project, itself worth

artificial intelligence (AI) will be applied

approximately $125mn, is a 44MW

to the management of energy flow

solar farm complete with battery stor-

rates, particularly as more than solar is

age amounting to 50MWh. “That’s

planned for Gippsland. “With the larger

essential,” Arthur says of the battery

site, the Gippsland Renewable Energy

capacity. “You can’t keep putting

Park, we’re not just doing solar plus

solar into the system as it’s produced

batteries. That’s stage one, 500MW w w w.e ne rgydi gi ta l. com


S O L I S R E N E W A B L E E N E R G Y P T Y LT D

150

DECEMBER 2019


PA RT N E R S

The collaboration-focused Solis RE has a number of key partners that are driving the success of its projects, including Middletons Engineering, AusNet, the Australian Energy Market Operator (AEMO), the Latrobe Valley Authority, and Federation University Australia. 151 of solar and 500MWh of battery, but we’re also integrating a number of other renewable energy sources on that same site,” enthuses Arthur. Along with plans to install a gas peaker station to provide baseload energy when necessary, Solis RE is also examining the viability of biomass. “There’s a huge issue with municipal councils being able to environmentally dispose of waste – they don’t want to send it all to landfill, so we’re looking at how we can convert it into energy instead.” The innovative design of the park does not end there, with plans to w w w.e ne rgydi gi ta l. com


S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“We went out to all of the large business and community groups before we even considered what was going to be in the park to hear about their issues and discuss how we could address them”

152

— King Arthur, Executive Director, Solis RE

leverage the site’s enormous energy

noting that, until recently, hydrogen’s

generation potential to power a hydro-

viability had been deeply limited by

gen production plant. Onshore and

issues around production and storage.

offshore wind facilities are also being

The scope of Solis RE’s capabili-

fielded as potential sources for the

ties and capacity for bold innovations

Gippsland project. The sum is a renew-

belie the recency of its founding,

able energy facility that produces

and Arthur is enthusiastic about its

power at all times of day, feeding the

enduring prospects. He affirms that

grid reliably and sustainably. Solis RE

its community engagement-focused

is also keen to continue project devel-

foundations will remain essential to its

opment as more solutions become

strategy going forward. “As a project

commercially viable, with Arthur

developer, we want to ensure that we

DECEMBER 2019


2016

Year founded

$10mn

Revenue in Australian dollars

153

continue to have large local content.

get what they need as the market

When we lease land, the land owners

moves in the future.� In an age where

take equity in the project, and we also

the challenges of the energy transition

find key community liaisons to fill skills

are being answered in earnest, a lot can

gaps and make sure that they come

be learned from Solis RE’s model of

in as equity partners as well.� It is of

collaboration, community engagement,

paramount importance, Arthur says, to

and technological flexibility.

ensure communities reap the benefits of the projects. All these projects are 20 to 30-year projects, so you really do need that local attention, care and ownership to ensure those projects w w w.e ne rgydi gi ta l. com


Profile for Energy Digital

Energy Digital – December 2019  

Energy Digital – December 2019