Energy Digital - February 2016

www.energydigital.com | Feburary 2016

THE 100 PERCENT CLUB 10 CORPORATIONS GOING ALL IN ON RENEWABLE INTRODUCING

THE BREAKTHROUGH ENERGY COALITION AND THE PEOPLE BEHIND IT

DIRECTOR’S COMMENT

IN THIS ISSUE

“People ‘over-produce’ pollution because they are not paying for the costs of dealing with it.”

- Ha-Joon Chang T H E P A T H T O G R E E N energy continues to be

the hottest topic in the energy sector and this month’s edition of Energy Digital gets in the thick of things. With companies and cities alike taking the pledge to go 100 percent renewable in the near future, we highlight some of the biggest initiatives underway in 2016 and the monumental benefits that come along with them.

Also this month, we take a look inside the Breakthrough Energy Coalition, a committee made up of tech billionaires such as Bill Gates that look to accelerate the pace of private sector investment in clean energy. “The existing system of basic research, clean energy investment, regulatory frameworks, and subsidies fails to sufficiently mobilize investment in truly transformative energy solutions for the future,” the Clean Energy Coalition said in its mission statement. The coalition, which will be a publicprivate partnership between governments, research institutions and investors, is based on the principle that technology will solve our global energy issues.

Because companies have a reputation for profits over people, we ranked the top 10 corporations going 100 percent green. These companies continue to lead the charge.

Enjoy the issue!

Energy Digital Team

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CONTENTS

Features

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LEADERSHIP Inside Look at the Breakthrough Energy Coalition

RENEWABLES The Path to Clean Energy

14 4

January 2016

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TOP 10 Corporations Going All In on Renewable

Company Profiles

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El Sewedy Electrometer

AFRICA 32 El Sewedy Electrometer

MIDDLE EAST 42 Jubail Energy Services Company (JESCO)

AUSTRALIA 66 TasNetworks 82 Snowy Hydro

BRAZIL 98 Jalles Machado 112 Martifer Solar

LATIN AMERICA

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66

TasNetworks

Jubail Energy Services Company (JESCO)

122 Dipetrol

82 Snowy Hydro

Jalles Machado

98

122 Dipetrol

5

Inside Look at the

Breakthrough Energy Coalition

The top tech billionaires join forces to accelerate the pace of private investments in clean energy.

Written by ERI C HARDI NG

LEADERSHIP

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LEADERSHIP IN AN ATTEMPT to create what is being described as an “economic revolution,” revolving around clean energy, some of the world’s most recognizable billionaire entrepreneurs have launched a new investment drive for renewable resources.

The Breakthrough Energy Coalition includes Microsoft co-founder Bill Gates, Facebook co-founder and chief executive Mark Zuckerberg, and Virgin Group head Richard Branson. Other investors include Reid Hoffman, founder of LinkedIn, and Amazon founder Jeff Bezos.

“The existing system of basic research, clean energy investment, regulatory frameworks, and subsidies fails to sufficiently mobilize investment in truly transformative energy solutions for the future,” the coalition said in its mission statement.

“We can’t wait for the system to change through normal cycles.”

The Breakthrough Energy Coalition, made up of more than 25 investors from 10 countries, was launched in Paris as part of the U.N. climate talks. The coalition is based on the principle that technology will solve our global energy issues and will be a public-private partnership 8

February 2016

between governments, research institutions and investors.

The group will mainly invest in early-stage clean energy companies across a range of sectors, such as electricity generation and storage, transportation, and agriculture. The initiative has been announced in conjunction with Mission Innovation — an effort from 21 governments, including Australia, the U.S., the UK, Germany, China, and Brazil to double the amount of public money going into clean energy innovation.

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It’s expected this will bolster governmental assistance in renewables, such as solar and wind energies, to $20 billion.

Earlier this year, Gates announced he would invest $1 billion of his private fortune in clean energy over the next five years. The Microsoft founder has also talked about energy poverty in recent years, suggesting that some of the investment could go to distributed solutions that bring modern energy access to the more than one billion people who live without it.

With off-grid solar solutions have begun to proliferate and become a profitable business, the time is now.

According to Gates, the world will use 50 per cent more energy by the middle of this century than it does today; however, this is still problematic because most of this energy will be derived from fossil fuels such as coal and oil.

“The renewable technologies we have today, like wind and solar, have made a lot of progress and could be one path to a zero-carbon energy 9

LEADERSHIP

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I N S I D E L O O K AT T H E C L E A N E N E R G Y C O A L I T I O N

future,” said Gates. “But given the scale of the challenge, we need to be exploring many different paths — and that means we also need to invent new approaches. Private companies will ultimately develop these energy breakthroughs, but their work will rely on the kind of basic research that only governments can fund. Both have a role to play.”

Zuckerberg believes the ongoing process toward achieving sustainable energy is too slow, while Branson added: “We must produce an abundance of clean, renewable energy and drive further innovation to make the next generation of energy more efficient.

It will benefit the environment, our society, and the economy.”

Meanwhile, Hoffman said efforts to transform energy sources have struggled because they require collaboration between private and public sectors.

“The swords that cut this Gordian knot: breakthrough technologies built and deployed by entrepreneurial companies with global scope,” he said. “Making the right investments in the right innovations now is essential to solving this energy 11

LEADERSHIP challenge for current and future generations across the planet.”

The group hasn’t yet put a total dollar amount on its level of investment, but acknowledged it will be focusing its resources on government-funded innovation that comes from countries involved in the Mission Innovation initiative.

Global investment in clean energy rose to US$270 billion last year, which is the first significant increase after a three-year lull in investment. China led the way with $89 billion in new money for renewables, followed by the U.S. at $51 billion.

The tumbling costs of renewables

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February 2016

— solar, for example, has fallen by 70 per cent since 2009 — has helped increase installation, although experts have warned that dependency upon fossil fuels will need to be wound back more quickly if the world is to avoid dangerous climate change fueled by greenhouse gases.

According to the Intergovernmental Panel on Climate Change, most of the world’s electricity can — and must — be produced by low-carbon sources by 2050. The panel said that renewables needed to grow from a 30 per cent share today to 80 per cent of power generation by 2050, with fossil fuel energy

I N S I D E L O O K A T T H E C L E A N E N E R G Y CHOEAALDI TL II O NN E

without carbon capture and storage technology phased out by 2100.

Executive director of the environmental group, the Sierra Club, Michael Brune said clean energy was already “winning the fight” against fossil fuels.

“Now, these incredible public and private commitments, which are historic, essential, and timely, show

that the nations of the world — as well as many of the world’s leading visionaries and philanthropists — are committed to making clean energy even more widespread, even faster,” said Brune.

“What’s now clearer than ever is that our future will be 100 per cent clean energy, and that dirty fossil fuels are merely riding out their final wave.”

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The Path to Clean Energy 5 Initiatives Underway in 2016 How is science paving the way for cleaner energy sources in the near future?

W r i t t e n b y: S A S H A O R M A N

R E N E WA B LE S

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R E N E WA B L E S THE FACE OF energy is changing: traditional fossil fuel sources are giving way to a future reliant on more renewable energy. But that means that renewable energy must also change. To be viable in the long term, renewable energy sources must be more powerful and cost-effective.

Here are five avenues researchers are exploring in an effort to make that more renewable future a reality.

Building better solar solutions Solar energy has been around for decades, but in recent years it has

been receiving more funding and interest than ever. That attention is coming from both the public and private sectors. In September, the U.S. Department of the Navy made its largest renewable investment to date through a solar farm partnership with Sempra and the Western Area Power Administration, while massive private companies across various fields from Apple and Cisco to Kaiser Permanente are investing in solar to the tune of millions.

That increased interest in solar

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means increased interest in making solar better. The U.S. Department of Energy (DoE) launched the SunShot initiative in 2010 with the goal of making solar energy cost-competitive: five years in, the initiative has made significant strides forward and is funding further advancements. In March 2016, the DoE assigned $18 million in funding to six projects across the country developing more scalable and cost-efficient solar energy storage technologies as part of its Grid Modernization Initiative (a

sector of the SunShot Initiative).

Wind power at the next level Wherever there are wide open spaces, there are opportunities for wind power. It’s a rapidly growing field—wind power provides 4.2 percent of Australia’s overall electricity, and approximately 5 percent of energy needs in both Canada and the United States.

But as those numbers aim to increase, engineers are searching for ways to maximize power generation in finite space.

One potential breakthrough is high altitude wind power, harnessing the more forceful winds of the upper atmosphere to generate energy. Startups like Altaeros Energies are experimenting with methods like turbines built into helium-filled industrial blimps, with the claim that these highaltitude methods could generate twice as much power compared to conventional wind turbines.

Advances in nuclear energy The thought of nuclear energy often gives consumers pause. But in fact, it’s much more common than 17

R E N E WA B L E S is also working hard on initiatives to expand the capabilities of this alternative energy source while also making it safer and more secure.

As a result of research by Advanced Reactor Concepts (ARC), nuclear energy will continue to provide clean, affordable, and secure energy while supporting the administration’s greenhouse gas reduction goals by introducing advanced designs into new energy and industrial markets,” states a recent report from the DoE’s office of nuclear energy. This research includes the development of “next generation” nuclear plants, from safer accident-containing sites to “recycling” reactors that turn previous nuclear waste into new fuel to power the future.

the average consumer would think.

According to the DoE, 20 percent of the country’s power generation in the last two decades has come from a nuclear power source, making it by far the largest current source of non-greenhouse-gas-emitting power generation. The energy community

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Harnessing tides for energy From conventional oil exploration to offshore wind farms, the ocean is home to myriad energy projects.

It is also the very source of a progressive generation approach called tidal power. Referred to as a “sister resource” to wind power, tidal power uses floating hydraulic pumps and the perpetual motion of

5 I N I T I AT I V E S U N D E R W AY I N 2 0 1 6

ocean currents to generate energy.

While tidal power has raised some concerns and detractors are still unconvinced of its potential, the method is gaining significant traction as a viable option in coastal regions, especially industrial regions where other forms of energy production are falling out of favor. In these areas, populations are looking to tidal power as a source for both renewable energy and a refreshed job market.

Capturing carbons for good Environmental issues like climate change have long been linked to an accumulation of greenhouse gases like carbon dioxide in the atmosphere. But what if that carbon could be captured and repurposed as something beneficial? Researchers

are currently looking into ways to recapture carbon from fossil fuels like coal and reuse the resource as a cost-effective energy source. Unlike some other forms of renewable energy, these researchers recognize that carbon capture may not be the greenest solution immediately—but with time its effects can be unlocked.

“In the short term, in order to develop the technology, we probably will enable more use of hydrocarbons, which makes environmentally conscious people uncomfortable,” Chris Jones, a chemical engineer studying CO2 capture at the Georgia Institute of Technology, told David Biello in a report for Yale 360. “But it’s a necessary thing we have to do to get the technology out there and learn how to make it more efficient.”

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TOP 10

The 100 Percent Club 10 Corporations Going All In on Renewable Despite their reputations for profits over people, major corporations continue to inch closer towards clean energy. These companies are leading the charge.

Written by: Robert Spence

TOP 10

This list represents the United States Environmental Protection Agency’s (EPA) list of Fortune 500 Partners consisting of 76 companies using nearly 14 billion kilowatt-hours (kWh) of green power annually, which is equivalent to the electricity use of more than 1.3 million average American homes. Our list breaks down the top 10.

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Lockheed Martin is an American global aerospace, defense, security and advanced technologies company based in Bethesda, Maryland. During 2014, Lockheed Martin implemented more than 30

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energy efficiency projects such as HVAC improvement, retrocommissioning activities and peak load reduction programs, which led to $3 million of cost avoidance and 15,000 MtCO2e.

With nearly 60,000 plus scientists and engineers worldwide, Lockheed Martin is committed to reaching the nation’s most complex energy goals such as 25 percent renewable energy by 2025, and 80 percent greenhouse gas reduction by 2050.

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T O P 1 0 C O M PA N I E S G O I N G 1 0 0 % R E N E W A B L E

In 2005, Wal-mart CEO Lee Scott set three bold goals: to be supplied 100 percent by renewable energy, to create zero waste, to sell products that sustain our resources and environment.

Currently, 26 percent of Wal-mart’s electricity globally is supplied by renewable energy, though amounts differ from country to country — more than 60 percent in Mexico, for example, though only 14 percent in the United States. For waste, Wal-mart diverted 82.4 percent of

its waste in the United States in 2014 across stores, clubs, distribution centers and other facilities. Outside the U.S. it achieved 68 percent waste diversion. The company says it’s on target to eliminate all landfill waste from U.S. Wal-mart and Sam’s Club locations by 2025; globally, it will take a little longer.

In addition, the company announced it had eliminated 28.2 million metric tons of greenhouse gas emissions in 2015 from its global supply chain, the equivalent of the emissions of nearly 6 million cars over a year.

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TOP 10

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Becton Dickinson (BD) is an American medical technology company that manufactures and sells medical devices, instrument systems and reagents. BD is currently using more than 423 million kilowatt-hours (kWh) of green power annually, which is enough green power to meet 84 percent of the organization’s overall electricity use. BD is purchasing renewable energy through a combination of power purchase agreements, renewable energy certificates and utility green power products from Bloom Energy, Nebraska Public Power District, NextEra Energy, and Rocky Mountain Power. In addition, BD is generating electricity from an on-site solar energy system.

This demonstrates a proactive choice to switch away from traditional sources of electricity generation and support cleaner renewable energy alternatives.

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Cisco Systems, Inc. is a worldwide leader in networking and seeks to build environmental sustainability into each of its business functions and processes.

Electricity represents more than 85 percent of Cisco’s Scope 1 and 2 greenhouse gas (GHG) emissions, and as a result, green power is instrumental to the company’s GHG management strategy. In 2015, Cisco used approximately 1,085 million kilowatt hours (kWh) of green

power for its U.S. operations, amounting to over 96 percent of the company’s U.S. electricity consumption. Cisco also recently announced a new set of environmental sustainability targets, one of which is to reduce its scope 1 and 2 emissions by 40 percent on an absolute basis by FY2017 compared to FY2007. Another target is to use electricity from renewable sources for at least 25% of global electricity consumed every year through FY2017.

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6/Starbucks Starbucks, everyone’s beloved coffee shop, is going 100 renewable. In 2011, Starbucks began working to purchase the renewable energy credits certificates (RECs) equivalent to 100 percent of the energy electricity used in its companyowned stores globally by 2015.

Today, they now purchase renewable energy equivalent to more than 50 percent of the electricity used in our companyowned stores worldwide. Recently the company made a pledge to cut their carbon dioxide (CO2) emissions and source their electricity solely on green energy, as part of non-profit organization, The Climate Group’s global initiative, “RE100”.

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T O P 1 0 C O M P A ENNI EESR G G YO IENFGF I1C0I 0E % N TRHE O NS EP WI AT B ALS E

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Google’s mission is to organize the world’s information and make it universally accessible and useful. Google builds some of the world’s most energy efficient data centers; its facilities consume 50 percent less energy than a typical data center. Google also procures large volumes of renewable power. As of February 2015, the company has signed nine long-term agreements for more than 1,100 megawatts (MW) of wind energy, which is enough

energy to power approximately 330,000 U.S. households. For any emissions Google cannot eliminate directly, it purchases high quality carbon offsets -- which brings its total carbon footprint to zero.

Google also has committed over $2 billion to renewable energy projects. When added up, these projects represent a total capacity of over 2.5 gigawatts (GW), and produce far more electricity than Google uses. To put this in context, this electricity is equivalent to that consumed by more than 500,000 U.S. homes.

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TOP 10

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Apple has already achieved 100 percent renewable for all its U.S. operations (including all of its data centers), and are up to 87 percent for its worldwide operations.

The company has achieved this by starting with energy efficiency, followed by an aggressive use of Apple-owned, new renewable energy generation projects, and then through industry-leading partnerships with utilities and renewable energy providers for grid-purchased renewable energy.

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E N E R G Y E F F I C I E N T H O S P I TA L S

Kohl’s strives to be a leading environmentally responsible retailer through focused resource stewardship by its associates and vendors. Kohl’s has embarked on a committed, integrated approach to environmental stewardship in all facets of its business endeavors with a common goal of long-term resource sustainability.

The company has embraced their strategies to drive its environmental initiatives: Sustainable

Operations, Stakeholder Engagement, and Supply Chain Sustainability. A member of EPA’s Green Power Partnership since 2006, Kohl’s has been recognized three times as the EPA Green Power Partner of the Year.

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TOP 10

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Headquartered in Redmond, Washington, Microsoft Corporation is one of the world’s largest technology and software companies. As part of its commitment to operating sustainably, Microsoft is purchasing more than 2.4 billion kilowatt-hours (kWh) of green power annually, making the company the second largest green power user in the Green Power Partnership (GPP) as of January 2014. Microsoft’s purchase, along with a combination of energy efficiency measures and an investment in high-quality carbon reduction projects, resulted in the company meeting its goal of reducing carbon emissions by at least 30 percent per unit of revenue below the company’s 2007 baseline.

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Intel Corporation, a world leader in silicon innovation, purchases more than 3.1 billion kilowatthours a year of renewable energy certificates, generated from wind, solar, geothermal, low impact hydro, and biomass sources, all third-party certified. In addition, Intel has facilitated 18 on-site solar plants at several Intel facilities with

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solar capacity of approximately 7,000 kW and growing. Intel’s purchase has the equivalent environmental impact of taking more than 455,000 passenger cars off the road each year, or avoiding the amount of electricity needed to power more than 327,000 average American homes annually, per the EPA calculator. 31

A revolution in metering Written by Nell Walker Produced by Daniel Pritchard

solutions 33

EL SEWEDY ELECTROMETER

How El Sewedy Electrometer Group stays ahead in the competitive metering industry

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ith 19 million meters running in 46 countries, and as one of the top 10 metering companies in the world, El Sewedy Electrometer Group (EMG) has come a long way from its well-established roots. The company has been established since 1998, and for decades it has slowly but surely built its brand, thriving where similar businesses fell behind. Its rise to prominence has occurred steadily throughout its timeline, as follows: • 1938 – Zaki El Sewedy Holding (ZSG) was founded as a supplier of electrical materials in Egypt • 1962 – ZSG was appointed by the Egyptian government as the main supplier of all electrical materials for the largest hydro power plant in Egypt, the Aswan High Dam • 1980 – ZSG started investing in industry,

AFRICA

starting with the manufacture of power cables, electricity distribution boards, electricity and gas meters, lighting fixtures, and energy-saving lamps in addition to its turn-key electrification projects • 1998 – ZSG established El Sewedy Electrometer (EMG), the first private sector company specialising in the design and manufacture of electricity meters in the Middle East • 2004 – EMG founded Ghana Electrometer Ltd, the first metering factory in West Africa, followed by the successful implementation of the e-Cash pre-payment system • 2007 – EMG ventured with EEPCO in Ethiopia Electrometer to produce prepaid meters in Ethiopia, as well as with ZESCO in Zambia Electrometer • 2008 – EMG partnered with BMG bank in Electrometer do Brazil, in addition to Electrometer de Las Americas in Mexico with CICASA • 2009 – EMG established El Sewedy Electrometer India to supply Asia as well as the rest of the group with quality meters and modules • 2010 – EMG acquired an established meter manufacturer in the Czech Republic to supply Europe and the rest of the world with smart grid solutions EMG is fully-focused on production of meters, network management services, large electrification

El Sewedy Electrometer has 19 million meters running in 46 countries

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EL SEWEDY ELECTROMETER projects, and product aftercare. The business expanded facilities in Africa to cover Ghana, Ethiopia, and Zambia respectively. As its success spread, EMG began to globalise, extending facilities to India, Brazil, and Mexico, before penetrating the European market by acquiring ZPA Smart Energies in the Czech Republic.

EMG has attained ISO 9001, ISO 14001, and OHSAS 18001 certification during its lifetime, and has become a sought-after partner for many other large businesses. Some of its major recent projects include the North Lebanon Project and the Ghana Ashanti BOT Project, both involving the design, manufacture, supply

AFRICA

and installation of various metering systems.

“We have a complete portfolio of products that cover residential, commercial, and industrial market needs,” says Mohammed Shoaib, Head of PMO and Strategic Sourcing at El Sewedy Electrometer. “Our portfolio includes basic meters, advanced meters that provide prepayment features, and smart meters that come with a flexible design to communicate via GPRS, RF or PLC. These smart meters enable utility companies to remotely collect metering data as well as configure meters, which enhances the accuracy and swiftness with which data is transferred between the utility and consumers.”

Productivity is optimised by utilising the latest techniques in lean manufacturing and Six Sigma. Calibration and testing systems are automated, allowing simultaneous manufacture of multiple products without sacrificing accuracy, and the ability to respond to customer delivery demands without risk of human error.

The supply chain is strictly operated and Shoaib demands perfection at every step of the way: “We have a solid supplier-management mechanism where we evaluate our suppliers based on their financial performance, the quality of the product, lead times, and cost. We try to have multiple suppliers for every item to minimise risk and lessen competition. We like to maintain an open relationship with all of them by sharing our production plans and our needs, which keeps them engaged. We have a list of authorised

Mahmoud Shawky Operations Director Mohamed is the director of operations and is a member of the management committee.

He is responsible for overseeing Elsewedy Electrometer’s daily operational activities including manufacturing, quality, supply chain, and performance reporting.

He plays effective role in the top management committee regarding the firm’s performance, dayto-day operations and overall strategic planning.

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suppliers, and another for preferred suppliers that we always return to. Also we are implementing a very solid tracking mechanism and an ERP system that connects the dots and ensures every point in the business runs smoothly.”

All of EMG’s products are heavily tested by world-renowned labs, including OFGEM in the UK, MET Lab in the US, INMETRO in Brazil, LAPEM in Mexico, ERDA in India, and many more to ensure all products are of the highest quality.

“We have prestigious R&D houses in Egypt, India, the Czech Republic, and many other countries.

Five percent of our annual revenue is invested in R&D; El Sewedy is one of the top five platforms for R&D in the metering industry. We don’t buy ready-made designs and just put our logo on them; we develop every concept ourselves.”

EMG’s smart meters come with a flexible design to communicate via GPRS, RF or PLC

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EL SEWEDY ELECTROMETER

Mohammed Shoaib Head of PMO and Strategic Sourcing Mohammed heads PMO and Strategic Sourcing at ElSewedy Electrometer. He oversees project execution from customer order all the way through to delivery.

He also oversees supplier relationships and evaluation plus BOM costing, lead times, and quality. Prior to that, he worked at Intel managing its R&D outsourcing. He is the recipient of Intel’s prestigious Division Recognition Award.

Mohammed holds a recent MBA and is PMP certified

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February 2016

Such a large, rapidly-expanding company has a lot to offer an employee, Shoaib says.

“We always offer opportunities for growth; it’s a global company and doesn’t have one single focus, so as an employee you would have the luxury of being exposed to the product development every step of the way; employees can grow within one department or expand to the next. We also offer training programs, depending on the position being applied for.”

Shoaib says that the economic climate hasn’t affected El Sewedy, as the business is always there. “We are operating in a B2B market. There’s a lot of demand for our products from the utilities and from privately-held companies. Developing countries are connecting more people through metering solutions, and the demand is growing.

That’s connected to the economic status and

AFRICA

growth of the country. Besides, the technology itself is evolving from the mechanical meter to the electricity meter, from post-paid to pre-paid meters, and recently to the smart meters. The demand is finding its way in both developed and developing countries.”

El Sewedy Electrometer’s slogan is ‘Manage Utilities Better’, which reflects its belief that its responsibilities lie beyond meters themselves and the aftercare thereof. EMG wants to enable its customers to manage their own utilities without difficulty, and offers comprehensive services to tackle that: “EMG is a total solution provider with deep focus on quality and customer service. Our solutions and services include engineering, installation, operation, maintenance, meter management, and billing activities.” Shoaib says.

What truly sets El Sewedy apart from other companies in the industry is experience, according to Shoaib: “The leaders of the company have a lot of experience in this industry and have been doing it for many years. EMG now has 10 factories present across five continents, which gives us global market leadership and significant production capacity of more than 5 million meters per annum. We cater to all segments of the meter market, not only focusing on one.

We have the power to decide where to produce depending on capacity and market needs.”

Mahmoud Adel Purchasing Manager Mahmoud Adel is the Purchasing Manager at Elsewedy Electrometer. He is responsible for buying the best quality equipment, goods and services for the organisation at the most competitive prices.

Mahmoud has 10 years of experience in purchasing and supplier management.

Mahmoud is Certified Supply Chain Professional (CSCP) from the American University in Cairo and Certified International Purchasing Manager (CIPM) from IPSCMI.

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Pipe solutions Written by Sarah Arnold Produced by Heykel Ouni 43

J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

JESCO has the expertise to meet the high demand for innovative pipe solutions within the GCC

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J

ubail Energy Services Company (JESCO) was founded in 2006 to cope with the demand for seamless pipes within the oil and gas industries. The idea behind this company was first considered 30 years ago within the GCC, but the implementation did not begin until 2003.

As the first company of its kind in the Middle East, JESCO produces two types of seamless pipes; OCTG (oil country tubular goods) and line pipe. Line pipes are those used to transfer oil and gas horizontally while OCTG is used to bring oil and gas to the surface.

MIDDLE EAST

Key Personnel

Zeyad Al Barrak CEO

JESCO is owned by a variety of investors.

The primary investor is parent company TAQA (Industrialization & Energy Services Company) holding 56 percent of shares. One of the world’s largest steel trading firms, Duferco (based in Switzerland), owns 10 percent of the company’s shares. The remaining 34 percent is owned by various well known Saudi investors.

JESCO’s production lines are located ten kilometers from the Jubail commercial port providing easy transportation of goods to international locations including the US, Asia

Graduating in 2000 from King Fahd University of Petroleum & Minerals with B.Sc. Finance and Economy, Al Barrak started working at Saudi Industrial Development Fund (SIDF) as a Credit Consultant under Projects Department – Credit Division. In 2007 he started his career in the metal industry and joined JESCO in 2008, serving as Chief Financial Officer until 2014. In September 2015, Al Barrak rejoined JESCO in the capacity of CEO.

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Logistical support for Eurotechnology’s One Stop Shop approach to Tubular Management is provided to the end user through a dedicated service focal point responsible for ensuring that the client is fully informed at all times of its tubular and equipment inventories at Eurotechnology’s service facilities via a dedicated real time software interface.

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Total Tubular Management Services include: • Non-Destructive Testing (NDT) of Casing, Tubing, Line Pipe, Drill Pipe using propriety full length UT & EMI technologies.

• Inspection and refurbishment of BHA and the associated tools & equipment • Third party inspection / Quality Assurance / Quality Control • Hardbanding Services, Tungsten Redress of BHA and service tools • Innovated CNC Machining Systems for the refurbishment of Drill Pipe, BHA and O.C.T.G Tubular Goods • Management of Tubular Inventories and Logistical support

Headquarters in Al Khobar with service operations in Jubail & Tanajib EUROTECHNOLOGY INTERNATIONAL CO. LTD. P.O Box: 4275, Al Khobar 31952, Kingdom of Saudi Arabia,

J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

SUPPLIER PROFILE

THE EUROTECHNOLOGY GROUP

Your Tubular Challenge is Our Business.

The Eurotechnology Group is a leading manufacturer, supplier and service provider of innovative Inspection Technologies, Hardbanding Equipment and sophisticated Tubular Threading Systems.

The Eurotechnology Group utilises the latest advanced technologies developed in-house providing a managed service approach focusing on client-led requirements. From day-to-day management of the client’s tubular and associated equipment to complete logistical support, the Group provides services related to the refurbishment of O.C.T.G., Drill strings, BHA, Service tools and equipment inventories employed in the various facets in drilling and the completion of oil and gas wells.

Logistical support for Eurotechnology’s One Stop Shop approach to Tubular Management is provided to the end user through a dedicated service focal point responsible for ensuring that the client is fully informed at all times of its tubular and equipment inventories at Eurotechnology’s service facilities via a dedicated real time software interface.

The Eurotechnology Group is also a provider of NDT inspection training programmes tailored to meet the customer’s personnel training requirements. In Pursuit of Excellence has always been and will always be, our main Goal.

Website: www.eurotechnologygroup.com 48

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MIDDLE EAST

and Europe. CEO Zeyad Al Barrak says: “This is one of the advantages that gives us an edge over our competition.” This strategic location means JESCO is able to supply GCC nations with products in a timely manner as well as smoothly import all the raw materials for production.

Work behind forming JESCO began in 1994 but did not come into fruition until 2003, leaving a gap in the market. When TAQA was formed in 2003, one of the mandates for this semi-state owned company was to establish a seamless pipe mill. Thus TAQA adopted the idea and after several additional years of feasibility studies JESCO was born.

“We have a capacity of 500,000 metric tons and we are working at that,” Al Barrak says. “We have a large diameter seamless pipe mill that goes from 4 ½ to 16 inches.” Demand for seamless pipe is high for API & Premium Connection (PC) and to

JESCO finishing line final storage evacuation area

500k

metric tons

JESCO’s working capacity

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49

Oil States Industries (UK), Ltd.

CONNECTOR TECHNOLOGY STRUCTURAL TEST LABORATORY

(UK) Ltd. Black Altens I

COMPLETE TESTING SERVICES

Scotland

Testing is conducted to international standards, typically, ISO 10423:2009; ISO14313:2007; ISO 13679:2002; ISO 21329:2004 and ISO 13628-7:2006.

www

Oil State

Altens In Oil State

®

Comprehensive Facilities

Nort

The Oil States test laboratory offers complete testing services including tension and compression with combinations of internal and external pressure with bend. Extreme temperature cycling with gas or hydrostatic pressure is also available.

Onsite Data Acquisition

1155 Dai Houston,

Fx +44 (0 sales@oilstate Ph +44 (0)122 Europ

France

on compression compression test rig 2400 ton tension/1600t tension/1600 on

Oil States Industries’ advanced structural test laboratory is internationally recognised for testing (FDIS 2011E)-API 2013)-API 3 tubing and casing to ISO 13679:2002 (FDIS 5C5 standards. UKAS accredited since 1992. The Oil States Test Laboratory meets ISO Standard BS/EN/ISO/ IEC 17025 and is designed to simulate normal and extreme operational load cases for product evaluation, prototype development and design validation of FEA analytical models.

Testing is routinely conducted on structures including wellhead connectors; valve systems; production tubing and casing; work-over risers; tendon connections and flexible risers.

The laboratory provides testing for Oil States products and those of third-party clients, including oil companies; oil service companies, and civil engineering, aviation and transportation companies.

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Troubleshooting and commissioning engineers are available around the clock and equipped with portable data acquisition technology for structural load monitoring and other tasks. Data can be promptly analysed by Oil States stress engineers to quickly resolve problems and minimise downtime.

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Oil States Industries UK Limited is pleased to be associated with Jubail Energy Services Company (JESCO)-Saudi Arabia. Testing their proprietary Tubing & Casing Connections to Specifications.

ISO 13679:2002<FDIS 2013/API 5C5>

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es Industries,

•Tension 1000and ton Compression rig (9964Kn) - Rigs 5.1/2” (140mm) to 7.1/2” (190mm) tubulars ndustrial Estate es Industries, 1000ton tonrig rig(19928Kn) (9964Kn) -- 7.5/8” 5.1/2” (194mm) (140mm) to to 30” 7.1/2” ® •• 2000 (190mm)tubulars tubulars (762mm) ndustrial Estate .

0)1224 897851 Blackness (UK) Ltd. Road •• 2000ton tonrig rig(23914Kn) (19928Kn) - 7.5/8” (194mm) to 30” 2400 - 7.5/8” (194mm) to 30” es-uk.com (762mm)tubulars tubulars Aberdeen AB12 3LH (762mm) 0)1224 (UK) 897851 Blackness Ltd. Road•• 8000 (80Mn) - 36” - 44” tubulars 2400ton tonrigrig (23914Kn) - 7.5/8” (194mm) to 30”

es-uk.com

(762mm) tubulars Our ton -tension rigs, purposely www.oilstates.com • 1000/2000/2400 8000 ton rig (80Mn) 36” - 44”test tubulars . built, in the UK for ISO 13679-API 5C5 testing.

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www.oilstates.com SALES OFFICES: Our 1000/2000/2400 ton tension test rigs, purposely Hydraulic Tension Rig, the WORLDWIDE Our built,8000 in the UK for ISO 13679-API 5C5largest-capacity testing.

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WORLDWIDE dustries, Inc. . of 80MN. This is primarily used for conducting tension 13) 510Ste. 2200 shford, 700 North as 77079 USA Americatests on Oil States’ proprietary Merlin® Connectors for Fx +1 (713) 510 2307 connector testing up to maximum axial tensile loads lle, Cedex 9 tension leg platforms and TLE tendon connectors.

dustries, Inc. of 80MN. This is primarily used shford, Europe Ste. 700& Eurasia as 77079 USA Bend testsRigs on Oil States’ proprietary Fx +1 (713) 510 2307 . Cedex 36, Bd lle, 9 des Oceans dustries, Inc.

for conducting tension Merlin Connectors for tension leg platforms and TLE tendon connectors.

Up to 30” diameter specimens 6 (762mm) 914 Europe & Eurasia mirov Street Ph +33 491 40 892,688,000 35 France ( ft.lbs (3650Kn.m) maximum moment 9,000,000 12220 Bend Rigs

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Performance Evaluation of Connectors for use in Pipelines

ISO 21329: 2004

Pipeline Impact Testing

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Pipeline Code: BS 8010

Pipeline Impact Testing Completion - Workover Riser Systems Pipeline Code: BS 8010 API - 17G - ISO/FDIS 13628-7: 2005 (E) Completion - Workover Riser Systems Testing at Elevated & Subzero Temperatures API - 17G - ISO/FDIS 13628-7: 2005 (E) -20 °C to 300 °C Testing at Elevated & Subzero Temperatures Onshore Strain Gauge Monitoring Service -20 °C to 300 °C Onshore Strain Gauge Monitoring Service

, Azerbaijan Fx +33 491 40 14 82 Bd des Oceans 12 5 98136,125 dustries, Inc.

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mirov Street Ph +33 491 40 892,688,000 35 France (3650Kn.m) BS823518 Partft.lbs 1: 1993 , Azerbaijan Fx +33 491 40 14 12 5 981 125 BS 3518 Part 3: 1963 (1990)

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BS ISO 12107: 2003

BS 3518 Part 1: 1993

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Fairmont Ste. 712 BS 3518 Part 3: 1963 (1990) dustries, Inc. MiddleSheikh East Zayed Road es Industries, BS ISO 2003 maximum dynamic load Bending +/– 200 12107: ton.f (1993Kn) Ph +971 50 55009 54 Fatigue Dubai, UAE

Axial Tension - Compression

Fairmont Ste. 712 +/– 1.0 x 10.6ft.lb (1350Kn.m) cyclic bending dustries, Inc. MiddleSheikh East Zayed Road es Industries, +/– 200 ton.f (1993Kn) maximum dynamic load Bending Wellhead & Christmas Tree Equipment Ph +971 50 55009 54 No. 50C Glover Road Fatigue Dubai, UAE Ikoyi, Lagos, (Nigeria) Ltd.Nigeria dustriesPhdo+234 1 2718363 API 10423: (1350Kn.m) 20039 +/–6A 1.0- ISO x 10.6ft.lb cyclic bending Fx +234 1 2718364

Subsea Wellhead & Christmas Tree Equipment Wellhead & Christmas Tree Equipment

No. 50C Glover Road South America

Ikoyi, Lagos, (Nigeria) Ltd.Nigeria API 17D-ISO 13628-4 dustriesPhdo+234 1 2718363 API 6A - ISO 10423: 2003 22 2773Rua 5625 J1, No.1 205 Fx +234 2718364 Pipeline Valve Novo Caveleiros Brasil Ltda.

CEP 27930-490 Subsea Wellhead & Christmas Tree Equipment Macae, Brasil South RJ America API 6D - ISO 14313: 2007 Ph +55 22 2763 4300

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22 2773Rua 5625J1, No. 205 Pipeline Valve Novo Caveleiros Brasil Ltda.

CEP 27930-490 Macae, RJ Brasil API Ph +55 22 2763 4300

6D - ISO 14313: 2007 8000 ton tension/1000 on compression test rig

www.oilstates.com

Q U A L I T Y FIVES TUBE AND PIPE FIVES is proud to have supplied several pieces of equipment to Danieli for the JESCO pipe plant in Saudi Arabia.

FIVES has acquired a number of tube & pipe equipment companies and is now the provider of well know pipe plant products made under the Abbey, Bronx, Celes, OTO, Stein and Taylor-Wilson names.

The JESCO project included two Taylor-Wilson Hydrostatic Pipe Testers. One of the Taylor-Wilson testers is capable of handling pipe diameters from 140 mm to 340 mm. The second Taylor-Wilson tester has a larger range from 140 mm to 406 mm. Both machines have test pressures up to 85 Mpa with bench loads of over 3200 kN’s. Taylor-Wilson is well known for being one of the most durable and safest hydrostatic pipe testers in the world.

There are two large Bronx pipe straightening machines at JESCO’s facility, model number 10CR11. Both straightening machines are designed to straighten pipes from diameters of 140 mm to 340 mm at speeds up to 60 meters per minute. Pipes are straightened in both hot and cold configurations with the hot machine processing pipe at temperatures up to 700°C. Bronx has one of the largest install base worldwide and is a trusted name in pipe straightening.

Fives supplies pipe making and finishing equipment to a wide range of industries and has one of the largest ranges of equipment. Fives has equipment to produce, heat treat, straighten, bevel and test pipes from 4 mm to 914 mm in diameter. Fives sells individual machines, multiple machines and complete solutions to general contractors and end users alike. For more information please contact Fives at www.fivesgroup.com fivesbronx-sales@fivesgroup.com

MIDDLE EAST

cope up with this demand, JESCO developed so far two PC Connections JPC2 & JPC3 and the list is growing. This will enhance the product mix provided to targeted markets. Plans for JPC4 are underway, enhancing this unique product further.

JESCO has over 100 years of experience in the construction of steel

Production site The production site at Jubail is built on 730,000 square meters of land provided by the Royal Commission for Jubail & Yanbu. Within these perimeters you will find a rolling mill, heat treatment, finishing, hydrostatic and nondestructive testing (NDT) lines. Also onsite is a full-fledged laboratory, enabling JESCO to ensure that the products delivered to its clients w w w. j e s c o . c o m . s a

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

PIPE PROTECTION TECHNOLOGIES

HIGH–PERFORMANCE API & PREMIUM THREAD PROTECTION FOR COMPLETE RANGE OF OCTG APPLICATION Safe, efficient and cost‐effective packaging for transporting tubular products worldwide.

About SKY-E 

Leading supplier of OCTG thread protectors and pipe packing products



Over 30 years’ experience on pipe protection technologies



Products tried and tested, going above and beyond industry standard



Qualified by all leading Oil and Gas Companies



Production capacity to meet any size job



On-time delivery to over 35 countries

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Tel +86 577 86552397 Email info@sky-e.cn

Feburary 2016

| Fax +86 577 86536385 | Web www.sky-e.cn

MIDDLE EAST

are of the very highest standard. bringing new innovations into the seamless piping industry.

As for market conditions today: “Everybody is facing challenges with the oil prices and the market slowdown in China; they are not growing enough. They are not reaching their manufacturing capabilities and it affected oil consumptions and the drilling activities, which ultimately then affects the consumption of pipes,” explains Al Barrak.

JESCO is closely monitoring the global economy. Recently, Aramco (Saudi Arabian Oil Company) increased its production along with their counterparts in UAE, Oman, Kuwait, Egypt and Iraq.

Current market conditions are not ideal and to cope with this, JESCO has short, mid and long-

“It is not necessarily about making a profit these days, but you need to survive.

It is a survival market now” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

A Step ahead in Capex and Opex Danieli Centro Tube SEAMLESS PIPE TECHNOLOGY TO PRODUCE UP TO 28” DIA API GR 1 TO 5 AND UP TO 160 PIECES/HOUR. Our plants are equipped with conetype piercing mills, original FQM™-Fine Quality Mill (3-roll retained mandrel mill) and sizing/ stretch reducing mill to roll tubes with close dimensional tolerances.

JESCO SAUDI ARABIA Complete turnkey complex for high-quality seamless pipe production: hot rolling line featuring FQM mill and pipe finishing floor for 400,000 tpy from 5”1/2 to 16” OD. VALLOUREC STAR OHIO (USA) High performance 3-roll FQM based seamless pipe mill for 450,000 tpy from 1” 1/2 to 7 OD.

BENTELER STEEL/TUBE (USA) High-piece rate (small lots, outstanding plant flexibility) and FQM mill featuring cartridge lateral change-over for 320,000 tpy of seamless pipes.

SEVERSKY TUBE WORKS (TMK) (RUSSIA) Hot rolling line featuring 5-stand FQM mill for 600,000 tpy seamless pipes ranging from 6” to 14” OD.

Danieli Headquarters 33042 Buttrio (Udine) Italy Tel (39)04321.958111

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1914 /2014 DANIELI CENTUR Y

MIDDLE EAST

term strategies in place. Al Barrak says: “It is not necessarily about making a profit these days, but you need to survive. It is a survival market now.”

On average this year, seamless pipes mills are working at a capacity of 35-40 percent, a level that is not sustainable. JESCO is managing this by having a major focus on sales while at the same time, cutting costs wherever possible. Al Barrak adds: “I believe that building key relationships is key in these difficult market conditions.” Saudi Aramco is the leading client for JESCO and it wants to build on this important relationship as well as those with other national oil companies.

In the medium to long term, JESCO is eager to focus on lean strategies and production methods while also incorporating Six Sigma techniques.

Al Barrak identifies with the unique selling point

“Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

World leaders in Tubular Finishing Technologies

Your World Partners in Technology

-Pipe Threading machines -Coupling Threading machines - Coupling Starter/ Screw On (buck-on) units - Full and Short Drifters

Proud to be part of the Jubail Energy Service Company success!

From the beginning!

European Plant:

U.S Plant:

Faubourg de Mignault, 17 - B 7070 LE ROEULX BELGIUM Ph.: +32/64/67.37.77 Fax: +32/64/67.32.67 Email: sales @pmc-colinet.be

29100 Lakeland Blvd., WICKLIFFE 44092 OHIO, U.S.A. Ph.: +1/440/943.3300 Fax: +1/440/944.1974 Email: sales@pmc-colinet.com

www.pmc-colinet.com A Park Ohio Company

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Feburary 2016

MIDDLE EAST

JESCO has: “Thirty percent of oil production in the world is in the Middle East. We are not like the other producers of seamless pipes that are stationed in Europe, the Americas and China.”

Aramco is one of JESCO’s major clients and partners; it provides gas used on site in Jubail and 50 percent of JESCO’s sales are to the local market - mostly to Aramco. The remaining half of sales is to near markets and to the US market.

JESCO produces seamless pipes for all the main national oil companies such as Abu Dhabi Company for Onshore Petroleum Operations (ADCO) and Petroleum Development Oman (PDO). Along with this, JESCO supplies various distributors and stock holders, including many important distributors of OCTG in the United States.

SAR

1.2bn The amount of revenue generated by JESCO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

Manufacturer of industrial processing tools and mechanical spare parts. Operated by highly skilled and professional experts according to standardized quality system and quality control.

OUR CLIENTS

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Feburary 2016

www.al-aslami.com

|

info@al-aslami.com

|

Tel: +966 133415159

MIDDLE EAST

JESCO has a 750-strong workforce, with a mixture of Saudi nationals and international expats. Due to market conditions, headcount was reduced by 100 but as the market picks up, Al Barrak believes that he will have a large selection of high-quality workers to select from. “Now, there is definitely the opportunity to headhunt qualified, talented and well-trained employees,” he states in relation to redundancies from other companies in the oil and gas industries.

“We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRDF). This is a government fund that helps us develop Saudi nationals. This help in funding is something we really need to thank

“We are giving high importance to training in order to enhance knowledge. We have an alliance with the Human Resource Development Fund (HRaDF). This is a government fund that helps us develop Saudi nationals” – Zeyad Al Barrak, CEO

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J U B A I L E N E R G Y S E R V I C E S C O M PA N Y ( J E S C O )

LEADING MACHINE-TOOL SUPPLIER WORLDWIDE IN OIL&GAS DANOBAT focus on providing the most suitable solution for your API, GOST and PREMIUM thread requirements fo medium and high production applications, addapting automation level and machines layout to your particular needs.

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DANOBAT

2 0 1 6Arriaga kalea, 21 E-20870 ELGOIBAR (Gipuzkoa) Spain

Tel.: + 34 943 74 80 44 danobat@danobat.com www.danobatgroup.com

MIDDLE EAST

the government for,” Al Barrak explains.

JESCO credits much of its success to the selection of premium manufacturing equipment made by the Italian machinery builder Danieli.

This firm has over 100 years of experience in the construction of steel making and heavy equipment. Al Barrak gives Danieli a lot of credit: “Without Danieli, we would never be able to produce or have such a plant in the Kingdom.”

Danieli, as well as having created the Jubail plant, has an important part to play in the future of JESCO. Since opening the plant, schemes implemented by Danieli mean that JESCO was able to widen the pipe sizes it produces.

JESCO’s latest product is also its smallest; a seamless pipe that is 4 ½ inches. It also installed a new finishing line that allowed the finishing of a further 100,000 tons of finished pipes. w w w. j e s c o . c o m . s a

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Precision Engineering for Shorter Cycle Times

www.colecarbide.com Only Cole OGW controls part-to-part uniformity and uses less of the allowable tolerance in grinding to optimize production.

Pair this with improved tool life, reduced cycle time and expert engineering and you profit from better quality end products.

Threading tools made better to perform better. Contact Cole OGW to learn more.

4930 S. Lapeer Road Orion Twp., MI 48359 U.S.A. Tel: (586) 757-8700 • Fax: (586) 757-8701 Sales inquiries welcome

We are Arabian Pipecoating Company specialized applicator for anti-corrosion coating material to the external and internal surface of line pipe, fabricated spools and associated fittings such as valves, elbows, flanges etc, were ranging from 2 to 80 inch (50 to 2031 mm) external and 2 to 72 inch (50 to 1828 mm) internal in diameter. our coating plant in Jubail – Saudi Arabia, can perform the following protective coating:• Fusion Bond Epoxy (FBE) internal & external • 3Layer Polyethylene (3LPE) external coating • 3layer Polypropylene (3LPP) external coating • Liquid epoxy coating internal & external • Field Girth Weld Coating • Double Jointing ( Welding ) of Pipe • Custom Shop Coating for fittings and spools etc.

• Concrete Weight Coating Please note that our company approved protective coating applicator for many leading companies such as Saudi Aramco, Saline Water Conversion Corporation (SWCC).in Saudi Arabia, KOC Kuwait, QP Qatar, ADNOC UAE and PDO Oman.

Our main activities and product line is directed to the Oil, Gas, Water and Petrochemical industries in the Kingdom of Saudi Arabia And entire Middle east . All our product line process are supported by a documented Quality Assurance System which has been audited and approved by Lloyd’s Registration assurance and which carries ISO 9001/ISO 18001/ ISO 14001 Tel: +966 13 882 2933 Fax: +966 13 882 2487 Email: rkhobar@apco-coating.com Website: apco-coating.com

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In 2012, JESCO went live with SAP (ERP System) to automate the company-wide business activities. This has been revolutionary for JESCO, providing smooth transitions between each function that leads to an increase in JESCO’s efficiency and productiveness.

The demand for innovative pipe solutions is very high within the GCC. Al Barrak says: “ We have our own research and development system. “ There are ambitious plans to expand our product offering that may also include drill pipes and further extensions of our size range.

“I believe it is important to always enhance the product mix that JESCO can offer,” he adds. w w w. j e s c o . c o m . s a

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CHA

ANGES WITH THE TIMES A traditional, government-owned business, TasNetworks adapts to remain relevant with its customers.

Written by: Eric Harding Produced by: Vince Kielty

67

TA S N E T W O R K S

A

traditional, governmentowned business formed from the merger between Aurora’s distribution network and Transend’s network, but it’s not a traditional future the company is preparing for. Tasmania-based TasNetworks has an opportunity to create something that’s more commercial and adaptable, thanks to the merger.

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February 2016

The previous Tasmania state government commissioned an independent panel to look into the state’s energy supply production and areas for processes reduction.

This resulted in the panel recommending a merge between Aurora Distribution (poles and wires) business and the Transend network (towers and powerlines) business.

The two combined in July 2014,

AUSTRALIA

making $913 million in the first year of operation as TasNetworks.

“The big challenge for us is, how do we energise, motivate and build the capability of our people so that we can move with the market,” said Justine McDermott, TasNetworks general manager of people and performance. “And it takes a lot of effort, strategy and leadership to do that.

“It’s a change from a conservative culture to an achievement culture.

And it’s never been done before in an Australian government-based organisation. It will be a very interesting case study to see if we can achieve it.”

I T S TA R T S AT T H E T O P Today, TasNetworks is about much more than simply poles and wires. w w w. t a s n e t w o r k s . c o m . a u

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Software Solutions for Australian Electricity and Gas, Retailers, Distributors and Metering Businesses.

Market Integration & Gateway Layer (MIL) CATS Module (CATS) Standing Data Repository (SDR) Standing Data Reconciliation (SDREC) Meter Data Management (MDM) Meter Data Delivery (MDD) B2B Network Billing (DBILL) NUOS Reconciliation (NREC) Energy Portals & Real-time Monitoring Retail Biling (RBILL)

ACN: 117 192 499 / ABN: 58 117 192 499

Brave Energy Systems (Brave) is a software solution provider speciďŹ cally focussing on the Australian energy market. Our team members have participated in industry committees for Gas and Electricity and have lead roles in the implementation of systems for some of the largest energy organisations in the country. Brave has been solving data problems for retailers and distributors since 2005 and aspires to be Australiaâ&#x20AC;&#x2122;s pre-eminent software vendor for electricity and gas solutions.

Brave enthusiastically invests in its product offering and is continually increasing the functional depth of our existing products and expanding the breadth of the overall solution set. Our investment extends to Research & Development on other initiatives such as battery and solar technologies. Brave has a strong commitment to the ongoing market compliance of our solutions. We participate in the assessment of proposed changes to the industry and upgrade our solutions to meet these changes as they are approved.

Brave Energy Pty Ltd 17 Carroll Crescent, Glen Iris Victoria 3146 Main: 03 9575 9000 Fax: 03 9575 9001

www.braveenergy.com.au

SUPPLIER PROFILE

Employees: 60 Established: 2005 Industry: Provider of software to the Australian utilities sector Services: Brave Energy provides products and services designed specifically for participants in the Australian utilities sector. These products are available through Brave’s BRAVO product and include billing engines, data management solutions, revenue assurance solutions, metering services solutions and gateways. Brave host solutions and provides back office operational services. Brave’s customers include Retailers, Distributors and Metering Service Providers Ongoing Projects: Brave has a number of large projects underway for existing clients and is in various stages of delivery for new clients.

Brave’s existing clients are expanding their use of BRAVO to benefit from the foundation productions and functionality implemented previously. New clients include start up retailers and clients wishing to enter into the provision of competitive metering services Key to success: Brave’s success is driven by its considerable experience in the Australian Utilities sector across both gas and electricity fuels. Brave employees are sourced from within the utilities sector to ensure this experience and knowledge continues to benefit our clients. BRAVO, Brave’s modular product suite, is specifically designed for the Australian utilities sector and is a further driver of Brave’s success Future developments: Brave continues to invest in BRAVO to meet market demand or to reflect changes arising from energy regulators.

Development of BRAVO is also driven by Brave’s own desires to offer products and services that our clients’ customers may wish to use and benefit from. Brave’s current focus is on delivery of metering services and refinement of cloud based solutions Management: Michael Hamilton - CEO; Peter Tillig - COO; Trent Jenkins

AUSTRALIA

The company’s role is changing rapidly, with a greater emphasis on getting people to buy into a different future, as well as helping employees understand that doing what they’ve done in the past is no longer enough.

“We clearly understand there are some levels of the business that are rapidly advancing upon us,” said McDermott. “In an environment like Tasmania, which is an island with isolated areas, the traditional poles and wires aren’t necessarily the best way to service those customers.

It’s about collaborating with other suppliers to produce standalone

services.”

Executing this plan takes strong, yet empathetic leadership, which McDermott believes TasNetworks CEO Lance Balcombe excels in.

“To be effective in leading change, you need leaders who are courageous. He’s really being courageous and backing the things that we’re doing,” said McDermott.

With the consistent commercial message around the market constantly changing, the company has to change along with it. The significant part of TasNetworks’ strategy is: The strategy won’t happen if they don’t make it happen.

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“Leadership and investing in our leadership programs to help people change and measure our progress is critical,” said McDermott. “Lance has backed all of that, and not many leaders or CEOs would so visibly.”

THE CUSTOMER COMES FIRST The new plan for TasNetworks’ business revolves around aligning the business to unlock efficiencies, staying relevant in a changing environment, and standing behind the customer.

“The big opportunity for us is helping our people be effective at working within a changing environment, which is something entirely new to the majority of our people,” said McDermott.

“Everything you do in this business should be

SUPPLIER PROFILE

Lance Balcombe, Chief Executive Officer

LITMUS GROUP

Litmus Group is a management consultancy firm specialising in the execution of business strategy. We work alongside clients to plan and deliver a positive return on their strategies through effective decision making and aligned implementations. Our focus is on creating real enterprise value by helping our clients to deliver business benefits, manage risks and accelerate the delivery of strategic outcomes that are tangible and sustainable.

We are an employee-owned firm with a committed, experienced and talented team.

Litmus is part of The Clovis Capital Company which manages a portfolio of businesses that together maximise tangible value for its clients through advisory services, specialised skills provision, private investments and product partnerships.

Litmus has offices across Australia and Singapore and is part of is part of Cordence Worldwide offering our clients access to global knowledge and cross-industry experience from more than 2600 consultants in 50 offices around the world.

Website: www.litmusgroup.com

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UXC OXYGEN – THE SAP SOLUTIONS COMPANY. WE LET BUSINESS LIVE.

As the leading SAP consulting and services system integrator and cloud solutions provider (also offering SAP as SaaS) across Australia and New Zealand, we liberate Utilities from the complexity of their IT systems so they can do business in a way that is streamlined, optimised and focused.

Offices throughout Australia and New Zealand Australia Phone: 1800 002 354

New Zealand Phone: 0800 008 606

info@uxcoxygen.com

www.uxcoxygen.com

Commercial Cleaning & Sanitation Service Solutions As a family owned company operating throughout the length and breadth of Tasmania, ABC Healthcare Services Pty Ltd has been offering industrial and commercial cleaning and sanitation service solutions for more than 30 years under current ownership.

ABC Healthcare Services is currently engaged with more than 30 major clients including all four major Australian banks, Statewide Tasnetworks Sites, National and State Educational Institutions, and Federal and State Government owned buildings.

PO Box 297 Glenorchy, Tasmania, 7010 Phone: (03) 6273 0218 / Fax: (03) 6273 4655 Email: admin@abchealthcareservices.com.au

AUSTRALIA

about the customer.”

A central part of TasNetworks’ customer theme is its Voice of the Customer program, which initially caught some off guard due to its vagueness.

“Everyone asked, ‘What is it?’

And I said, ‘We’ll figure it out along the way,’” said Tas Networks CEO Lance Balcombe. “A lot of people struggle with that because they want something tangible. That creates challenges for some people,

when they’ve been used to dealing with certainty.”

TasNetworks has developed a Voice of the Customer Program to drive the focus on delivering quality service outcomes for its customers.

Despite its ambiguous nature, or perhaps because of it, Voice of the Customer is designed to reflect TasNetwork’s highly flexible nature, keeping customer satisfaction as the ultimate goal, rather than as secondary one. w w w. t a s n e t w o r k s . c o m . a u

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FLEXIBLE E M PLOY E E S WA NTE D Although engineers traditionally seek perfection and stability, TasNetworks employees must move quickly, juggle unknown variables, and take risks in such a dynamic environment.

“We have a clear understanding that we’re embarking on a transformation program,” said McDermott. “We want to keep doing what we do well, and learn

multiple new skills and capabilities.

We have known that from the start.

One of the great opportunities of a new business is you can put the scaffolding in place to build change.”

Change isn’t for everyone, but one thing TasNetworks prides itself in is helping its people adjust to change, while also helping them make the right choices if it doesn’t suit them.

TasNetworks puts emphasis on assessment, measuring both its w w w. t a s n e t w o r k s . c o m . a u

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internal culture and engagement, before sharing the data with its employees and putting them through culture development workshops.

“We talk to them about how each of our behaviours creates the culture, and what we may need to do differently to change our culture to one that is more achievement focused,” said McDermott.

“Becoming more adaptable is a big change. We’re not expecting it to happen immediately, but it’s the start of a long-term program.”

TECH LEADERS With a recently upgraded starter system along with a myriad of business software platforms, TasNetworks signed off on implementing a business transformation project at the end of October with SAP at its core.

According to Balcombe, it’s a twoyear implementation that will cost just over $58 million.

“It’s not an IT project,” said Balcombe. “We very much view this as a business transformation project. Obviously there’s a lot of 80

February 2016

risk with large IT implementation, but we’ve done a lot of work making sure we resource it properly.

“A big component of the project is change management, because the way people do things as result of this project is going to change.”

In addition, TasNetworks transmission system consists of a 220 kV and a 110 kV transmission network that connects generators to the distribution system, major industrial customers and the

AUSTRALIA

Company Information NAME

TasNetworks INDUSTRY

Energy FOUNDED

2014 ABOUT

undersea cable called Basslink.

The intricate system comprised of over 3500 circuit kilometers of transmission lines, 49 substations and seven switching stations, a telecommunications network and a control centre.

And along with its own telecommunications requirements, TasNetworks also owns and operates a telecommunications business that serves customers in the electricity industry among others.

It’s just yet other ways TasNetworks adapts to its surroundings.

TasNetworks commenced operations on 1 July 2014, formed by a merger between Aurora’s distribution network (the poles and wires) and Transend’s network (the big towers and lines). TasNetworks is a Tasmanian State owned corporation that supplies power from the generation source to homes and businesses through a network of transmission towers, substations and powerlines.

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Australian

INGENUITY Snowy Hydro Limited CEO Paul Broad discusses recent acquisitions, current upgrades, and reveals what the company has up its sleeve for the future.

Written by: Robert Spence Produced by: Glen White

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S

nowy Hydro Limited has a long and proud heritage as an Australian company.

Growing from early beginnings as an electricity generator into a leading end-to-end energy provider, Snowy Hydro captures the essence of the innovative Aussie spirit.

“Snowy Hydro was dreamed about back in the 1880s when they were trying to move water from the east of Australia to the very dry west. As a result, the inception of a massive hydropower system that has the capacity of generating 600 megawatts (MWs) was developed,” said Managing Director and CEO, Paul Broad.

“Electricity generation was in the beginning a way to pay to move the water. But now, the scheme can generate 4100 MW of renewable electricity and Snowy Hydro has grown to be the leading provider of peak electricity in the NEM,” Broad said.

Completed in 1974, the Snowy Scheme is one of the biggest engineering and construction projects undertaken in Australia, taking over 25 years to complete 84

February 2016

Tumut 3 Power Station, SHL

with more than 100,000 people from over 30 countries working on the project. Today, its construction is an important symbol of Australia’s identity as an independent, multicultural and resourceful country.

In 2014, Snowy Hydro began to emerge as a major player in the energy retail sector with almost one million retail account holders.

AUSTRALIA

At the same time, the company is embracing technology as a means to improve efficiency, reliability and connectivity across the company.

I N T E G R AT E D E N E R G Y PROVIDER Simply put, Snowy Hydro Limited is an energy producer, supplier, trader and retailer for Australia.

The company has 5500MW of

generating capacity across New South Wales, Victoria and South Australia, utilising the power of the Snowy Scheme, three gas-fired power stations and diesel peaking generators. Between the Scheme, 300MW Valley Power gas-fired power station, the 320MW Laverton North gas-fired power station and the recently acquired 667MW gasfired generator at Colongra in New w w w. s n o w y h y d ro . c o m . a u

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ASBESTOS REMOVAL & DEMOLITION ASBESTOS SAMPLING & TESTING DEMOLITION

Since 2008, AGH Demolition and Asbestos Removal Pty Ltd has worked with clients throughout Australia to provide innovative and economical solutions, specific to each project.

Our qualified and highly experienced team will manage all aspects of your hazardous material project. AGHâ&#x20AC;&#x2122;s professionalism and focus on safety ensures that the client receives a high standard of remedial service.

02 6299 0323 admin@agh.com.au www.agh.com.au

AUSTRALIA

South Wales and diesel peaking generators in South Australia, Snowy offers a flexible and reliable mix of energy.

“The key to our success is our ability to utilise the Snowy Scheme’s large, reliable and fast start capability to our advantage, whether it’s through spot generation, risk management for our wholesale customers, futures contracts or electricity and gas supply to households and commercial and industrial customers,” said Broad.

The Snowy Scheme is comprised of 16 major dams, nine power

stations (two underground), a pumping station and 145 kilometres of interconnected tunnels and pipelines and 80 kilometres of aqueducts. The company commenced a $68 million modernisation program in 2012 to improve efficiency and update infrastructure. This is in addition to continued investment in maintaining and improving the reliability and response time of assets.

“The physical upgrades include smarter, more efficient runners on the turbine, which means we’re getting 10-15 per cent more

SUPPLIER PROFILE

AGH

In relation to our association with Snowy Hydro we have undertaken a significant amount of asbestos removal work including the following: · Removal of asbestos contaminated phase barriers and the reinstatement of these · Removal of asbestos contaminated door seals, brake pads, friable mastics, insulating components within the Snowy Hydro plant · Environmental cleaning Some other projects AGH has been involved in include the following: · Asbestos removal and demolition of homes affected by Mr Fluffy insulation · Main contractor in an MBA Award Winning project – Guideline ACT (photo attached) · Ongoing projects at schools, hospitals, government departments and

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We are an Australian based company with a highly skilled and qualified team that extends around the world, to the U.S., U.K., New Zealand and South America.

Our specialist workforce in Large Rotating Machines in both the Mining and Power Generation industries enables us to offer extensive field services to clients large and small. Whether you need a turnkey solution or just a few extra staff, our services include consultation, project supervision, test and inspection, dry ice cleaning, full installations, rewinds and rewedges.

Winding Specialists Working Globally

AUSTRALIAN WINDERS 5 Muros Place, Midvale, WA 6056 Phone: +61 8 9274 8652 Fax: +61 8 6296 7687 Email: info@australianwinders.com.au

www.australianwinders.com.au

AUSTRALIA

output. The turbines are running far more efficiently and that’s added enormously to our value,” said Broad.

“Secondly, we’ve integrated these machines with a centralised control room. In the past, all these plants were run individually and now they’re centralised so we can dispatch electricity faster and more efficiently and make this work seamlessly across the whole suite of generation assets we have.”

NEW MARKETS Recent acquisitions have also allowed Snowy Hydro to bolster

SUPPLIER PROFILE

its energy retail business. The company has invested almost one billion dollars in acquisitions in recent years to grow its customer base and expand generation assets, including acquiring energy retail company Lumo Energy in late 2014 and integrating it with its successful Red Energy business.

The combination of Red and Lumo has helped Snowy Hydro nearly double the size of its retail business to almost one million customer accounts and become the fourth largest energy retailer in the NEM. “Red Energy has been part of our

AUSTRALIAN WINDERS

AUSTRALIAN WINDERS Pty Ltd is a company committed to providing top quality ’on site’ services to perform electric motor / generator winding and refurbishment to customers worldwide.

Australian Winders has grown commercially, technically and developed full resources, to be in a position that enables them to compete with OEM and international companies in large machine repair and long term maintenance contracts. We have been successful in securing main contracts in turbine and hydro generator work this past year. Highlights being a major hydro generator outage to perform inspection, testing and repairs for Snowy Hydro Limited and a very successful partial discharge repair on turbine stator windings of a generator for GDF Suez.

‘With the capabilities we’ve pooled by incorporating highly experienced team members who have leading knowledge in services in this field– no company that supplies winding

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BHA offers innovative survey services to suit the clients needs

• Epoch monitoring surveys of existing dams • Review of existing survey networks for stability • Detailed reports of methodology and results.

• Analysis of surveyed deformation displacements including vectors and time based plots.

• Survey of terminal structures for calibration of embedded instrumentation.

• Update coordinates and grid datum to suit GNSS including conversion algorithms.

Tel: +61 2 4353 9644 Mob: 0412 432 561 Email: admin@surveyors.com.au

www.surveyors.com.au Member Association of Consulting Surveyors (Aust.)

AUSTRALIA

Guthega Dam, SHL

business for more than a decade.

We are now working on integrating the two successful retail businesses into one extraordinary retail business, while remaining focused on superior customer service,” said Broad.

According to Broad, Red and Lumo now offer both electricity and gas to customers in Victoria and New South Wales, while expanding the availability of gas to other markets, enabling a dual fuel

offering which attracts and retains more retail energy customers.

“Our retail companies Red Energy and Lumo Energy pride themselves on customer service with energy backed by one of the great civil engineering wonders of the modern world—the Snowy Mountains Scheme.”

ACE UP TH E S LEE V E Snowy Hydro continues to participate in emerging w w w. s n o w y h y d ro . c o m . a u

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Employees, SHL

ASBESTOS CONSULTANCY HAZARDOUS MATERIALS ENVIRONMENTAL ASSESSMENT & REMEDIATION LABORATORY SERVICES OCCUPATIONAL HYGIENE TRAINING & DEVELOPMENT RESPIRATOR FIT TESTING Contact John Directly: Mobile: 0412 087 298 Email: john@robsonenviro.com.au

technologies that will help challenge and disrupt the energy industry and they remain at the forefront of Australian innovation as the energy industry shifts towards consumerled generation, energy storage and use.

“We embrace technology—it is at the heart of efficiencies for our company,” said Broad.

A great example is Snowy’s trial of battery storage with Panasonic.

The system is expected to help solar households double their rates of

As Managing Director of Robson Environmental for over 25 years, John Robson and his team of 20 professionals and technicians have been engaged as specialist consultants on local, national and international projects. The team at Robsons are widely recognised for providing expert, practical and cost effective advice supported by clear , accurate and concise documentation to government, , corporate and private sectors.

As well as being a NATA technical assessor, John contributes to a number of entities that address workplace, environmental and asbestos safety.

John is available to share his knowledge and expertise to help our clients find the right solution. Contact John today to discuss how Robson Environmental’s capabilities can meet your requirements.

www.robsonenviro.com.au

JOHN ROBSON B.Sc. Grad. Dip. Occ. Hyg. Cert.IV TAE

ENERGY

Snowy Hydro SouthCare Rescue Helicopter

self-consumption from around 30 per cent to 60 per cent, by storing excess solar output during the day for use later, as well as provide a cost effective alternative to grid infrastructure investments.

According to Broad, the 8kWh lithium-ion battery storage system, with an output of 2kW, has been designed specifically for the Australian market, which best suits solar arrays of around 5kW. “Battery storage is just part of where we think the modern energy world is headed. Panasonic is a great partner for us given the

technology and innovation they’re adopting in their own backyard.

We think they’ll be a beautiful fit for us in the business we run for the foreseeable future,” said Broad.

Along with innovative partnerships, Snowy intends to harness the power of smart metering technology as well.

“Metering is going to become a bigger issue in Australia.

Traditionally it’s been controlled by the network companies here, but that’s about to change in the next two years. We will be at the forefront of smart metering, establishing w w w. s n o w y h y d ro . c o m . a u

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Aerial view Colongra Power Station, SHL

AUSTRALIA

another point of contact with the household so we can provide multiple services with our system.”

The true ace up Snowy Hydro’s sleeve is the introduction of high-tech unmanned underwater vehicles (UUV) for inspection and the use of drones to inspect and report back on the state of assets.

In the past, inspecting the many kilometres of tunnels was a massive operation, requiring the tunnels to be drained of water, essentially shutting down part of the Snowy Scheme and several power stations for up to a month.

“We used these unmanned subs for the first time about 18 months ago. The technology has been around for a while but the new innovation is the sonic wave, which can give you forensic details of the structures in these tunnels. Now we can build maps of the tunnels and revisit them regularly to see any movements like rock caving that might indicate a problem sometime down the road,” said Broad.

“This gives us phenomenally detailed information and the ability to build detailed models of the assets we have and really

Paul Broad CEO & Managing Director

Noel Cornish Chairman

“The technology has been around for a while but the new innovation is the sonic wave, which can give you forensic details of the structures in these tunnels.”

– Paul Broad, CEO & Managing Director w w w. s n o w y h y d ro . c o m . a u

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Lake Eucumbene, SHL

understand the condition they’re in, including better understanding the capital investment we have to make to sustain them.”

SHINING OPPORTUNITIES ON THE HORIZON

As a predominantly hydro company, Snowy is a leader in renewable energy and intends to compete with the likes of Tesla and others to 96

February 2016

capture more of the solar market in Australia—an estimated 1.4 million households. Snowy currently services only 30,000 of those solar powered homes through its retail companies, but according to Broad, that’s merely the beginning.

“We are entering the solar market very carefully because it’s a new frontier we haven’t extensively explored. Snowy doesn’t

AUSTRALIA

Company Information INDUSTRY

Utilities HEADQUARTERS

New South Wales, Australia FOUNDED

2002 EMPLOYEES

1700 PRODUCTS / SERVICES

Snowy Hydro is a producer, supplier, trader

necessarily have a comparative advantage yet,” said Broad. “But with our innovative battery technology trial and solar technology, we are formulating a very competitive product that we and the people of Australia can be proud of.”

As a cornerstone of the Australian historical and energy landscape and an integral part of the communities in which they operate in, Snowy Hydro is taking things to new levels in 2016 and beyond.

and retailer of energy and is also a leading provider of risk management financial hedge contracts to the Australian National Electricity Market (NEM)

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SUSTAINABLE TECHNOLOGY

Green fuel, organic culture and sustainability aimed for natural resources preservation

Written by: Flรกvia Brancato | Produced by: Carolina Majer 99

JALLES MACHADO

J

alles Machado was founded in 1980 with the mission of offering high quality products, preserving the environment and creating employment opportunities in Goianésia, a small town in Goiás.

Today, as a reference in the sucroenergetic national sector, the company exports to more than 20 countries.

PRODUCTION AND INCREASE Following market demands, the commodities company, through constant innovation and sustainable technology investments, began offering products of their own under the brand name Itajá. The products range from granulated and organic sugar to sanitizing products and yeast. “Over time, we invested in

Organic production

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Organic sugar

energy cogeneration to sell the overage to the internal market,” said Otávio Lage de Siqueira Filho, CEO of Jalles Machado.

In November 2015, the company celebrated its 35th anniversary, beating the Safra 2015/16 record as the largest in its history. Its production was over 4.6 million sugarcane ton, about 245.7 million gallons of ethanol, almost 4 million sugar sacks, two tons of yeast, over 729,600 thousand boxes of sanitizing products, and nearly

334.2 megawatt-hours of energy generation.

The CEO emphasized his plans to keep the company’s growth going. “Part of our planning includes investing more in sugar production and residue use, such as using as the sugarcane chaff to generate energy and the vinasse for biogas production,” Otávio Filho said.

CORPORATE GOVERNANCE Operational efficiency and the administration’s dedication to cost w w w. j a l l e s m a c h a d o . c o m

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Jalles Machado Sports Association

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reduction are reflected in many aspects of the company.. According to Otávio Filho, Jalles Machado is a differentiated player inside the national sucro-energetic sector because of its great agricultural productivity, commercialized products with a high summed value, and expert managers balance risk with discipline.

“The company works following the most elevated patterns of governance, with great financial discipline and risk management.

Audited since 1987 as one of the ‘Big Four,’ it has expert managers, qualified and recognized by the market, a 100 percent dedicated Investor Relations Department, and a corporate rating published by two of the principal worldwide risk agencies,” said the CEO. CAMPAINS AND SOCIAL RESPONSABILITIES Over the years, Jalles Machado has reinforced its commitment to sustainability, valuing collaborators,

CERTIFICATIONS

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adopting practical means to mitigate negative impacts, investing in sustainable technology, and promoting actions that preserve natural resources for future generations.

The company invests in safety, health, leisure, sports and culture programs, putting the most emphasis on educational investments. The Jalles Machado Foundation operates the Luiz Cesar School, which offers basic education for 400 students. It also sponsors educational opportunities

Luiz César school

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for employees, including: Worker Education Project: A partnership with SESI (Industrial Social Service), Jalles Machado has maintained an educational program for young people and adults since March 2004. The project, named “Educação para o Trabalhador” (worker education) aims to provide education to the workers, from basic literacy skills through high school.

Professional Education: To promote professional development, the company has partnerships with professional education institutions as SENAR (National Rural Training Service), SENAI (National Service of Industrial Learning) and ITEGO (Goiás Technological Institute Governor Otávio Lage).

In addition, the company holds training and improving programs, has an internship program, and scholarships for graduate and post graduate courses for employees.

“Our job is more than producing energy. Our biggest goal is help to change the life of our employees and the communities where we act,” said the CEO.

MORE THAN PACKAGING: PROTECTING THE QUALITY OF YOUR PRODUCT Klabin’s industrial sacks are biodegradable, recyclable and made from raw materials sourced from forests planted specifically for this purpose. Klabin’s food sacks feature strength, safety, print quality, easy automation, high packing speed and optimal palletization, as well as sanitary conditions and integrity accredited by the American Institute of Baking (AIB).

Certifications and recognition: Chain of Custody certified by the FSC® (FSC-C017793) (Forest Stewardship Council®) Recognized by the CDP (Carbon Disclosure Project) Certifications: ISEGA, ISO14001, ISO9001 Recognized by the American Institute of Baking (AIB)

JALLES MACHADO

ENVIRONMENT AND TECHNOLOGY Jalles Machado respects the environment. Among numerous practices that guarantee sustainable production, some highlights are: water resources management; organic production; more than 16 thousand hectares of Brazilian cerrado in an extra property reservation in CavalcanteGO; reforestation totaling more than four million planted trees; biological

plague control; clean and renewable electrical power generated by sugarcane straw and bagasse; planting rubber trees for natural extraction; mechanical harvesting to avoid forest fires; and environmental education programs.

The company adopts modern technologies to process sugarcane, providing the maximum sugar extraction of raw material and producing higher standard products. â&#x20AC;&#x153;We are always searching

Seedling nursery

Reserve

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JALLES MACHADO

Otávio Lage unit

new practices to improve the industrial efficiency. The Otávio Lage unit, open since 2011, has the most modern automation technology in the national sucroenergetic sector,” said Otávio Filho.

The company adopts a monitoring system whereat the entire process, from the raw material until the final product, can be seen by a control room where any necessary intervention can be done, without using field operators.

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PARTNERSHIP AND INVESTMENT In 2015, Jalles Machado began a partnership with Albioma Holdings of Brazil, which sold 65 percent of the shares of one of its cogeneration units, thermoelectric Codora Energy. The French company specializes in high performance energy cogeneration of biomass from sugarcane, and its shares are now a part of the industrial complex of Otavio Lage Unit.

BRAZIL

“The Otávio Lage unit, open since 2011, has the most modern automation technology in the national sucro-energetic sector.”

– Otávio Lage de Siqueira Filho, Jalles Machado CEO

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“Part of our planning includes investing more in sugar production and residue use, such as using as the sugarcane chaff to generate energy and the vinasse for biogas production.”

– Otávio Lage de Siqueira Filho, Jalles Machado CEO

“With the partnership, Jalles Machado will see great possibilities for improvement in energy efficiency of the facility, resulting from Albioma’s industrial expertise in straw gathering process, with additional great energy potential and power generation in the offseason,” said the CEO. “It is a 110

February 2016

twenty year partnership with the return of Albioma shares to Jalles Machado at the end of this period.”

“Over the average term, a third turbo generator will be installed, with 20 MW of power, which will allow an increase of electricity exported to over 170 GWh. This is an increase of approximately 75

BRAZIL

Company Information INDUSTRY

Sugarcane HEADQUARTERS

Goianésia, Goiás - Brazil E S TA B L I S H E D

1980 EMPLOYEES

3,700 PRODUCTS

Conventional Sugar, Organic Sugar, Ethanol, Electricity, Yeast and Sanitizing products

Energy Cogeneration

percent added to the 2018/19 harvest,” he said.

For the future, the focus of investment is in agriculture seeking the renewal of sugarcane fields, fleet renewal and mainly agricultural machinery and irrigation.

“In this industry, we make investments every year in order to improve product quality and reduce waste and costs,” he concluded.

MANAGEMENT

CEO: Otávio Lage de Siqueira Filho Director of Operation: Joel Soares Alves da Silva Commercial Director: Henrique Penna de Siqueira CFO: Rodrigo Penna de Siqueira

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COMPLETE

SOLUTIONS

The company is a global leader in development, EPC and O&M services in the photovoltaic market Written by: Flรกvia Brancato | Produced by: Carolina Majer

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s a part of the Martifer Groups, Martifer Solar focuses its operations on metallic construction and on solar energy. Based in Portugal, located in more than 25 countries, and spread over five continents, the company offers complete solutions as one of the biggest in its worldwide sector.

Its global presence is a result of successful projects, including the

development of solar plants with excellent cost-benefit ratio and a focus on transforming solar energy into green assets.

PROJECTS With a unique growth between other companies in the photovoltaic solar energy sector, Martifer Solar started operating with a total capacity of 100 MW at the end of 2010 and finishing the first part of 2015 with a

Martifer Solar factory

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February 2016

BRAZIL

total capacity of 670 MW, with more than 500 facilities.

Soil Facility: 106 soil facilities produce more than 301 MW of clean solar energy or “pure energy” all around the world, proving the company’s experience with photovoltaic soil installations.

Rooftop Facilities: Martifer Solar plays a leadership role in this business segment by operating 336 facilities with more than 87 MW global rooftops installations.

BIPV: With the highest photovoltaic installation in the planet, the Cristal Tower in Madrid is one of the company’s most extraordinary projects of architectural integration.

Micro and Mini-generation: Mantifer Solar has gained experience developing this global business, mainly for residencies and small electrical central facilities.

Off-grid: Off-grid electrification is an alternative to obtain electricity and is used in countries and areas with reduced access to electrical networks due to population dispersion.

Investigation, Development and Innovation Department (I&D+i) The Investigation, Development and Innovation (I&D+i) department

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BIPV

MARTIFER SOLAR

sector trends. This is done through testing the best technologies to develop solutions that combine vanguard engineering and the solution patterns required for projects in any part of the world.

Some innovative examples include the Off-Grid (Smartvolt速) system, architectural integration (BIPV facilities) and a new CPV system (concentrator photovoltaics).

With a purpose of becoming more effective in photovoltaic solutions, the I&D+I department created a partnership with O&M (Maintenance and Operation) on site to interpret data and analysis, applying the global best practices.

Off-grid Installations

attempts to be one step ahead of the market. Anticipating costumer demands through developing innovative solutions and the highest quality standards to any project or segment in the business, the unit follows all the new photovoltaic 116

February 2016

Engineering, Procurement and Construction (EPC) Providing integrated solutions, Mantifer Solar has the capacity to perform a complete EPC service, in every step of the value chain, from the engineering, production and management stages to the construction and commissioning stages.

MPrime produces its own photovoltaic modules in one of the

Construction

MARTIFER SOLAR

O&M Service

most technologically advanced factories in Europe. Located at the company headquarters, in an area of 10 thousand square meters, the factory is completely automated and robotic. It reaches an annual production capacity of 60 MW, expandable to 100 M, producing modules up to 260 W. 118

February 2016

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY As a European Recycling Platform member, a nonprofit organization that manages an operational plan to collect and recycle photovoltaic modules, Martifer Solar has proven its commitment to sustainability.

In addition to the planet, the

BRAZIL

Ground Mounted Installations

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Rooftop Installations

company also cares for its employees. Collaborating with APCDI, an association located close to the Martifer Groups headquarters, the company helps in the integration of people with disabilities enter the job market.

Through a local scholar program headed up by Karingana Association in Timor-Leste, Martifer Solar distributes infrastructure and electricity to the families in 120

February 2016

the region.

Market Recognition and Growth In 2006, its founding year, the Martifer Solar group received the first excellence prize for promoting new areas of investment and business, assigned for the Romaniaâ&#x20AC;&#x2122;s Commerce and Industry House.

To strengthen its investment structure in 2010, the company

BRAZIL

Company Information NAME

Martifer Solar INDUSTRY

Solar Energy HEADQUARTERS

Oliveira de Frades, Portugal E S TA B L I S H E D

2006 EMPLOYEES

250

increased its social capital to 50 million euros.

In the same year, it finished construction of one of the biggest photovoltaic parks in the African continent, located in Cabo Verde in the Santiago and Sal islands.

Increasing its exposition in markets outside of Europe with the entry into promising markets, 2011 was the time to develop the first photovoltaic solar energy project in India. Brazil also saw first project: a 300 MW photovoltaic facility at a General Motors factory in Joinville, Santa Catarina.

ANNUAL REVENUE

230 million Euros

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EFFICIENCY IN USE AND INTERNAL

Dipetrol is Guatemala’s perfect partner for fuel and oi

Written by: Mateo Rafael Tablado Produced by: Jassen Pintado Interviewee: Pedro David Ruiz, CCO for Dipetrol

ERâ&#x20AC;&#x2122;S EXPERIENCE L OPERATIONS

il, and a benchmarking experience in service stations

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T

he creation of Dipetrol derived from circumstances such as foreign markets’ conditions, ups and downs in the stock market, and the constant developments in technology toward the optimization of timeconsuming tasks from everyday life. But also a good sense of opportunity and tireless efforts from the company’s creators were involved in establishing Dipetrol as the “before” and “after” point for purchasing fuel in Guatemala.

To find the key turns in events leading to the company’s inception, it is necessary to know certain aspects in Mr. Pedro Ruiz’s career. Ruiz, co-founder of Dipetrol and its CCO, graduated in Management and Marketing from the University

Dipetrol’s efficiency and planning earned the group a reputation for global fuel and oil brands to select the company as their partner in Guatemala

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of North Carolina, and began working for the Shell oil company in 1998 as a business analyst and soon after took more demanding positions on a regional level, requiring Ruiz learn about stock and commodities trading and formula pricing, among other abilities. In 2006, Ruiz left Shell to create Constellation Investment with two other partners, engaging completely into financial activities; as this was happening, Shell began selling its assets in Central America, preparing to leave this area with the exception of Guatemala.

The 2008 global financial crisis convinced Ruiz and partners into getting in business with tangible goods, not just fluctuating figures depending on the global markets’ whims.

“In one of our discussions about the market’s crisis, we resolved we had to own a brick and mortar business unit, and right there and then Dipetrol was born,” shared Ruiz.

The planning process came to fruition on March 1st, 2010; the company’s drive for innovation in the fuel purchasing experience and asset management turned Dipetrol –and one of its service stations- as a global benchmark for their major partner, Puma Energy.

Dipetrol is still developing, and most conditions provide a forecast of optimal results during the coming years coming as the company keeps developing under an exemplary operational and financial management.

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Key People

Pedro David Ruiz CCO for Dipetrol Ruiz earned a Bachelor’s in Management and Marketing at the University of North Carolina. Later, he earned a Master’s in Management from INCAE (Central American Institute for Business). He spent many years of his career in the energy sector working for the Shell co. in Guatemala and other countries in the region. He was first hired as a business analyst and soon after was designed for more demanding positions, becoming Tender Unit Manager for the North LATAM region, and also Retail Area Manager.

Working at Shell, Ruiz learned about financial transactions, stocks, markets within the sector and other concepts, resulting in the creation of Constellation Investment along with other partners in 2007, a year after leaving Shell.

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“Dipetrol is a thriving, new venture already able to accomplish important agreements, thrusting forward our business model” – Pedro Ruiz, CCO for Dipetrol

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Dipetrol complies with strict safety measures in every procedure

Dipetrol’s facilities are designed to fulfill every end consumer’s needs

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More than enough attributes into becoming an ideal business partner Dipetrol’s operations within the fuel and oil sector are summarized in three activities: • Distributors for Shell fuel in Guatemala: selected by UNO, Central America’s giant fuel and oil co., which acquired Shell’s assets in the area.

• Large-scale distributors for Puma Energy brand lubricants, selected after a long, competitive process.

• 20 service station network in Guatemala, with Puma Energy as main partner.

“Dipetrol is not fully-developed yet, it’s in an accelerated growth stage,” the executive explained.

Technology in support of internal interactions and user’s experience Dipetrol’s management is aware of the advantages resulting from an optimal use of technology in its daily operations, and relies on these resources to improve the end consumers’ experience at service stations as well as interaction within the company and its suppliers.

Every service station is monitored from the company’s HQ through its SAES system (Service Station Management System), custom-made for the company between 2014 and 2015. This system allows monitoring for sales, accounts receivable, inventory management and other indicators. The challenge for SAES during 2016 is the system’s integration to real-time electronic

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billing from service stations, where attendants use tablets to enter customer’s billing info when required.

“This technology allows for reducing a customer’s average stay at a service station,” Ruiz said.

For financial transactions such as payments and other supplier-related dealings, Dipetrol established a network interface between the company, the bank and purveyors. This automated system not only eases each transaction but also provides the company of credit support from the bank, allowing automatic invoice payment.

Service stations going solar Dipetrol is proud of becoming Guatemala’s first fuel retail company recurring to solar energy for a service station’s operations. The Las Luces station, along with its convenience store, is powered 50 percent by solar energy, and it already became a global benchmark unit for Puma Energy.

Dipetrol’s expectations for 2016 include transforming three more service stations to photovoltaics.

Automation is underway in fuel-dispensing operations as well as producing e-receipts

Dipetrol offers the most complete services, supported by latestgeneration technology,

Quality product and its handling, key in the supply chain Obtaining high-quality fuel and conveyance of fuel products is the most critical parts of Dipetrol’s supply chain. Timely arrival of sales

in order to improve the customer’s experience while reducing his stay at stations when loading fuel

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“Guatemala is a country with multiple needs; we must leave our footprint in a specific area: education” – Pedro Ruiz, CCO for Dipetrol

products and having these products arrive in the best conditions possible is essential for Dipetrol to maintain offering products and services at competitive prices.

“It is very important to have reliable suppliers able to provide the highest-quality products at competitive prices who also share values such as an eagerness to grow and support toward brands,” said the CCO. Expansion within Guatemala and abroad Growth projections within Guatemala are set both for opening new service stations and for oil lubricants. Expansion abroad may happen in the mid-term after examining these possibilities.

Certain markets in Central America bring interest for Dipetrol as does Mexico’s southeast, depending on this country’s developments within the energy sector’s upcoming reforms.

“We are considering expanding into territories that our suppliers are also seeking to set foot in,” Ruiz explained.

Staff selection and training procedures include simulation of real-life situations on service stations

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The proper training according to each position Hiring procedures at Dipetrol are very methodical.

These procedures consider each position within a pyramid. The first parts of these procedures are outsourced. Afterwards, candidates are subject to simulations of real-life everyday situations.

For all the staff, the company makes use of

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Half of the Las Luces power is supplied by solar energy. Three other stations are to undergo this transformation during 2016

resources and workshops provided by local business associations and chambers. Some of these programs take from six to eight months, covering areas such as leadership, negotiations, customer service, and others. By 2017, the company will have fully-developed support programs to offer postgraduate studies to some of its employees.

Improving impoverished children’s lives During 2015, CSR Dipetrol supported Rotary Club’s programs to bring the best possible conditions for some schools in eastern Guatemala. But for 2016, these efforts will be directed toward the “Apoyate En Mi” (“Lean on me”) program, focused on a rescue mission w w w. d i p e t ro l . c o m

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Fuel supplier Autotanques displays the traits Dipetrol seeks for in every purveyor: high-quality products and services, competitive pricing, and brand support

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over Guatemala City’s landfills, bringing children -currently working in the waist disposals- into orphanages to be taken care of and to be provided of an education, with an opportunity to grow into a productive life, away from the local “Mara” gangs, which gather pre-teens to join their ranks into a life of crime and delinquency.

“Dipetrol is looking forward to contribute in bringing these kids to a productive lifestyle, to have opportunities among society,” the executive said.

Projections: new business units Dipetrol’s forecast for its key business units – service stations- during 2016 is set to accomplish a 30 percent growth rate. The fuel and oil lubricants distribution is set to achieve doubledigit growth.

Besides Dipetrol thriving efforts in the fuel and oil business, the corporation’s broad vision has already resulted into driving efforts into different sectors, acquiring an established restaurant and opening another during 2015; the group has also a business commitment pending local development with a Spanish casual dining franchise, and it already opened a wine cellar, offering imported wines, with plans to open four more during 2016.

“There are other areas we want to explore, such as real estate, education, hospitality, to name a few,” stated Pedro Ruiz, CCO for Dipetrol.

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Company Information NAME

Dipetrol INDUSTRY

Energy: fuel & oil HEADQUARTERS

Guatemala city FOUNDED

2010 EMPLOYEES

330 REVENUE

US $130 million WEBSITE

www.dipetrol.com

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