Energy Focus September 2021

THE BUSINESS MAGAZINE FOR ENERGY LEADERS

www.energy-focus.net

September 2021

Dogger Bank to Supply 5% of UK Electricity Demand Exclusive interview with Steve Wilson, SSE Renewables Project Director

ALSO IN THIS ISSUE:

Finergreen / BP / TotalEnergies / Vestas

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EDITOR’S LETTER EDITOR Joe Forshaw  joe@energy-focus.net PROJECT MANAGER Chris Wright  chrisw@energy-focus.net PROJECT MANAGER Ekwa Bikaka  ekwa@energy-focus.net PROJECT MANAGER James Davey  jamesd@energy-focus.net PROJECT MANAGER Eleanor Sarbutt-King  eleanor@energy-focus.net PROJECT MANAGER Christina Allcock  christina@energy-focus.net SENIOR DESIGNER Liam Woodbine  liam@energy-focus.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

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The ever-evolving energy industry is now seeing its long-term strategy become clearer. There is a certainly a shift away from oil, gas and coal. The time of the fossil fuel has come and gone (although they will certainly be with us for some time to come) - this news is not new. But, for some time, the next stage in the energy mix was rather unclear. Would all focus go to renewables? Would money be ploughed into manufacturing? Would endless R&D happen around batteries and storage? Would the environment ever truly be at the forefront of the giant energy majors?

While these questions remain, the path is now a little clearer. Wind energy is going to play a major role in the world’s energy mix. Solar will be a major job creator and a large part of the mix, and biogas will be the next step in the circular economy. But it is from hydrogen where the next energy boom will emerge. Industry insiders have been researching and pushing hydrogen for some time. Its potential has been documented, and now there are real projects on the ground that are starting to demonstrate the element’s power.

Damien Ricordeau, Founder and CEO at Finergreen, a boutique financial advisory business in the renewable space, tells us that the deals of the future will surround hydrogen and its involvement in the storage of electricity produced from renewable sources.

One of those sources will be the Dogger Bank wind farm off the east coast of Yorkshire in the UK. This will be the world’s largest when complete and fully operational. Bringing the power onshore and moving it into homes will help reduce emissions from thermal plants and will lessen reliability on the fuels of the past. But, the 3.6GW – capable of powering six million UK households – must be used efficiently, and may need to be stored. Projects like Dogger Bank will inevitably need to involved hydrogen in the future.

Investing in renewables or hydrogen storage? Can you see any drawbacks? Get in touch and let us know how your business is navigating the switch.

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 1603 855 161  joe@energy-focus.net www.energy-focus.net

www.energy-focus.net / 3

32// BHP Re-Positioning for a Sustainable Future BHP is among the world-leading diversified resources companies, and more than 80,000 employees and contractors are implicated in the drive to extract and process minerals, oil and gas, primarily in Australia and the Americas.

Strong financial results and a record dividend are positioning BHP remarkably strongly for the future, where it envisages that the renewable energy transition will be pivotal to sustainable mining.

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CONTENTS

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8// 14// 20// 26// 32// 38//

DOGGER BANK WIND FARM Dogger Bank to Supply 5% of UK Electricity Demand FINERGREEN Making Renewable Transactions Happen BP Net Zero Strategy Set for Success TOTALENERGIES Energy Transition Sparks Total Transformation BHP Re-Positioning for a Sustainable Future VESTAS Wind Power That Means the World www.energy-focus.net / 5

VESTAS TO CEASE PRODUCTION AT THREE SITES Vestas facilities in Germany, Denmark and Spain will cease production as the company looks to bring efficiencies to business during a period where it is integrating onshore and offshore manufacturing capability.

Factories in Lauchhammer, Germany; Viveiro, Spain and Esbjerg, Denmark will stop producing goods and the company will manufacture for, and service its clients, and the 19 GW within the three countries, through 12 sites in Europe.

“Today’s fast-moving energy transition, rapid introduction of new products and recent integration of our onshore and offshore business require us to further mature and evolve our supply chain network and manufacturing footprint. While Vestas will sustain a strong footprint

in Europe across manufacturing and service activities, it’s always hard to make decisions that negatively affect our good, hardworking colleagues at Vestas. I would like to emphasise that we are deeply committed to explore opportunities to relocate our colleagues, who unfortunately will be impacted by the cease of production at our factories in Lauchhammer, Viveiro and Esbjerg,” said Executive Vice President and COO Tommy Rahbek Nielsen.

460 people in Lauchhammer will be relocated to other German facilities and, up until the end of 2021, a limited number of blades for the V117 and V136 turbines will be manufactured.

115 people in Viveiro will similarly be relocated to other regions in Spain, and the company cites a locking demand

of products produced in that factory as the reason for closure. 75 people in the Esbjerg facility will again be relocated around Denmark as demand slips for the power conversion modules for the V164 and V174 offshore turbines which will be manufactured at the site until the end of the first quarter of 2022.

Vestas employs more than 29,000 globally across onshore and offshore activities. The total cost of this adjustment of Vestas’ manufacturing onshore and offshore footprint will depend on specifics related to e.g. the outcome of negotiations with work councils, sale of buildings and etc.

As indicated in Vestas’ guidance for 2021, the total cost will be booked as special items related to the integration of the offshore business and will be recognised in the third quarter of 2021.

MORE GAS FOR EUROPEAN MARKET Energy major Equinor has received approval to increase gas exports from two fields on the Norwegian continental shelf to supply the tight European market, under immense pressure with prices going through the roof.

The Oseberg and Troll fields have each been increased by 1 billion cubic meters (bcm) for the gas year starting 1 October. Norway’s Ministry of Petroleum and Energy began talks with Equinor in June.

“The production permits allow us to produce more gas from these two important fields this fall and through the winter. We believe that this is very timely as Europe is facing an unusually tight market for natural gas. At Equinor we are working on measures to increase exports from our fields on the NCS,” says Helge Haugane, senior vice president Gas & Power.

After 25 years of significant gas exports from Troll, around 50% of the gas is left in the ground. To further develop the Troll-area and reinforce our ability to secure gas deliveries to Europe in the coming decades, Equinor has recently completed the Troll Phase 3 project. Recoverable volumes from Troll phase

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3, which will produce the Troll West gas cap with industry leading low CO2 emissions, are estimated at as much as 347 billion standard cubic metres of gas.

Total recoverable gas volume remaining in Troll is estimated to be 715 billion standard cubic metres.

NEWS SNAPSHOT GAZPROM AND LUKOIL CREATE JV IN YANAA A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, Alexander Dyukov, Director General of Gazprom Neft, and Vagit Alekperov, President of LUKOIL, took place in St. Petersburg recently.

The parties discussed the state and prospects of strategic interaction between the Gazprom Group and LUKOIL aimed at implementing joint projects for the exploration, production, transportation and processing of hydrocarbon feedstock.

As part of the meeting, Alexander Dyukov and Vagit Alekperov signed an agreement to create a JV for the development of a major oil-and-gas cluster in the Nadym-PurTaz region of the Yamal-Nenets Autonomous Area.

The JV is being set up via Meretoyakhaneftegaz, a subsidiary of Gazprom Neft. The new production centre will have at its core the Tazovskoye field, which was put into production in June 2021. In addition, the JV’s activities will cover the development of the Severo-Samburgskoye and Meretoyakhinskoye fields, as well as two Zapadno-Yubileyny licensed blocks. The aggregate geological reserves of the new

cluster amount to more than 1 billion tons of oil and about 500 billion cubic meters of gas.

Meretoyakhaneftegaz is the first asset to be managed

by Gazprom Neft and LUKOIL on a parity basis. A considerable part of the company’s geological reserves is located in the Achimov sequence and belongs to the hardto-recover category.

Furthermore, the two companies will continue to explore additional opportunities for expanding their cooperation on a number of promising projects in their regions of activity across Russia.

“Our task is to effectively bring into development the hydrocarbon reserves with complex geology that are located beyond the Arctic Circle. The joint efforts of the two companies will allow us to deploy the best technological solutions there. It should also be noted that the creation of the JV is facilitating further advancement of the strategic partnership between the Gazprom Group and LUKOIL,” said Alexey Miller.

ROLLS-ROYCE AND FLANDERS ELECTRIC PARTNER IN MINES Rolls-Royce and Flanders Electric have agreed to develop a retrofit solution for hybridizing mining trucks with mtu engines, batteries and hybrid control systems, and Flanders drive train solutions. The two companies have signed a Memorandum of Understanding enabling them to offer a scalable retrofit kit for hybridizing mining trucks in a wide range of mining applications.

With its brand mtu, Rolls-Royce business unit Power Systems is a leading provider of advanced integrated and sustainable power solutions for a wide variety of applications, including mining equipment. Flanders is an industry leader

in the development and sale of electric motors and generator systems, as well as automation and control systems for heavy industrial applications.

John Oliver, CEO and Chairman of the Board of Flanders, said: “Improving our customers’ operations, lowering their costs while enhancing their energy footprint, is a win for the mining industry and for the environment as a whole.

We are excited to partner with Rolls-Royce Power Systems to deliver an industry leading hybrid power solution that will help our customers achieve their energy or carbon reduction goals.”

Scott Woodruff, Vice President for Mining and Oil & Gas at Rolls-Royce Power Systems, said: “We are excited to shape the mining industry’s sustainable future together with Flanders and further leverage our advanced hybrid technologies, which are already proven in the rail industry. Together we will offer our customers integrated, future-oriented, hybrid solutions.”

The mining truck hybrid concept recovers braking energy, using the mtu EnergyPack battery system. This energy is then fed back to power the wheel motors, allowing the diesel engine to be downsized. The smaller engine reduces fuel consumption and C02 emissions by up to 30%, helping mining customers to achieve their emissions reduction targets, while optimizing their operations. The hybrid concept also includes the DC/DC converters which interface the battery system with the DC link of the truck. The system is highly modular and scalable for trucks of any size, working anywhere in the world.

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DOGGER BANK WIND FARM

Dogger Bank to Supply 5% of UK Electricity Demand PRODUCTION: Joe Forshaw

By 2026, the Dogger Bank Offshore Wind Farm will be the world’s largest, supplying green energy to six million UK households. It is an inspirational, ambitious and sometimes unimaginable project. Steve Wilson, SSE Renewables Project Director talks to Energy Focus about progress in this mammoth undertaking.

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The world’s largest. Not many can claim it. Not many would try it. But to change things for the better, you have to be ambitious.

The Burj Khalifa, the Danyang– Kunshan Grand Bridge, the Titanic, the Bagger 288 – icons of human development, demonstrating what is possible when you push boundaries.

In the UK North Sea, the Mount Everest of offshore wind farms is

taking shape, rising from the seabed as a beacon of hope for cleaner energy production – an ambitious advancement of what would have once been viewed as impossible.

The Dogger Bank offshore wind farm will be the world’s largest, capable of producing 3.6GW of electricity. This is enough clean, green power for six million UK homes. It will be iconic in the UK’s journey towards carbon neutrality.

The three-phase project: Dogger Bank A and B is the vision of SSE Renewables (40%), Equinor (40%) and Eni (20%), with the final phase C a 50:50 JV between SSE Renewables and Equinor. Each phase will bring 1.2GW from plan to reality and as the UK transitions further away from fossil fuel electricity generation, projects like Dogger Bank will act as catalysts for change.

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INDUSTRY FOCUS: WIND ENERGY

The 8660 km2 development site – formerly a land mass connecting the UK and Europe before being flooded by rising sea levels between 5000 and 8000 years ago – sits between 125 and 290 km off the east coast of Yorkshire, in tough conditions ranging from 18 to 63 metres water depth. For each of the three phases, two offshore HVDC cables will export power to onshore converter stations where clean electricity will be added to the UK national grid as the UK’s first HVDC-connected wind farm.

It’s a mammoth task which has taken more than a decade of meticulous planning to date.

In 2020 construction began – and then the full force of the global pandemic began to filter through international markets. How do you build the world’s largest offshore wind farm while one of history’s worst disasters plays out?

Steve Wilson, SSE Renewables Project Director for Dogger Bank Wind Farm, tells Energy Focus that the pandemic has added to what was already

an extremely challenging development.

“2020 might not have been the year we all wanted or expected it to be, but for SSE Renewables and Equinor it was the year we safely started and financed a project that promises to change the face of the global offshore wind sector, and open up a new world of cuttingedge energy generation on UK soil.

“Construction work commenced on Dogger Bank Wind Farm in early 2020, when we broke ground at the start of an unprecedented and unexpected year. Despite the challenges thrown up by the global pandemic, the project remains on track and I’m pleased to say we’ve been able to achieve our first major milestones safely, and on time.

The safety of our communities and those working on our sites remains of paramount importance to us as we move through 2021.

“Work on the first two phases of the development is set to gain further momentum as we head into Spring.

And with all tier one contractors now appointed for Dogger Bank A and B,

// TO SAY DOGGER BANK WIND FARM IS PUSHING TECHNOLOGY BOUNDARIES IN OFFSHORE WIND IS AN UNDERSTATEMENT // our focus is now on finalising our tier one supply chain for the third phase of the development, Dogger Bank C. Over the next 10 months we’ll be starting work on our onshore converter stations in East Yorkshire, and the first onshore cables will be installed along our East Riding cable route.

“To say Dogger Bank Wind Farm is pushing technology boundaries in offshore wind is an understatement.

Not only is it the world’s largest offshore wind farm, it will be the first to use GE Renewable Energy’s record-breaking 13MW and 14MW Haliade-X turbines, the first HVDC connected windfarm

Steve Wilson, SSE Renewables Project Director

10 / www.energy-focus.net

DOGGER BANK WIND FARM

(c) GE Renewable Energy

in the UK, and the first HVDC facility breaking 1GW line by installing 1.2GW, a tremendous scale up from the latest installation of 0.8GW. A HVDC connection will ensure that the renewable energy being transmitted over the long distances from the Dogger Bank offshore to the onshore grid connections in East Riding and Teesside, will be achieved efficiently whilst minimising losses,” he says.

SHEER SCALE As construction activity continues to gather pace, smaller projects are being announced to support the overall vision.

In March, designs for a new multi-million-pound Operations and Maintenance (O&M) Base at the Port of Tyne were released. When complete, the base will be home to all onshore operational staff and will become a base for offshore technicians. There will also be a quayside support unit for state-ofthe-art Service Operations Vessels to arrive, exchange crew and upgrade.

Eventually, the base will be home to 200 staff as full operations are rolled out. Equinor will operate the wind farm for its entire life-time.

“Dogger Bank is set to have a huge impact in the North East of England.

On top of the hundreds of direct jobs the project creates, opportunities from the project will reach many others in the region from industry suppliers to catering companies,” says Halfdan Brustad, Vice President for Dogger Bank at Equinor.

“In addition to UK supplier opportunities during construction, there will also be substantial local jobs and supply chain opportunities in the operations and maintenance phase of the wind farm,” Halfdan continued.

Localisation is key for the UK wind sector and the country’s transition from hydrocarbons to renewable energy. In October 2020, Boris Johnson stated that offshore wind farms could generate enough electricity to power every home in the UK by 2030, feeding into the country’s net zero ambitions

// WHEN THE PROJECT IS FULLY OPERATIONAL IN 2026, IT WILL BE CAPABLE OF PRODUCING ENOUGH RENEWABLE ENERGY FOR SIX MILLION UK HOUSEHOLDS, OR 5% OF THE UK’S ELECTRICITY REQUIREMENTS // for 2050. This idea would create more than 2000 construction jobs and 60,000 ongoing support roles across a range of companies in the private and public sector. Aiming for 40GW in the next nine years, local supplier and localisation of skills and expertise will be vital for sustainability.

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INDUSTRY FOCUS: WIND ENERGY

“We’re fully committed to supporting the development of a sustainable UK supply chain as we continue to establish our full supply chain across the three 1.2GW phases,” says Wilson. “We are working hard with suppliers to maximise UK supply chain opportunities where these meet project requirements, while taking into consideration some of the challenges associated with the availability of components and services from the UK for a project of this scale. In September, we announced a collaboration with GE Renewable Energy which is set to create 120 new jobs at its turbine marshalling harbour, Able Seaton Port.

“Our local communities are also set to benefit from the project, with work underway to develop a skills-focused community benefit programme right on their doorstep. We’re financially

supporting the Offshore Wind Growth Partnership with funding to develop the UK supply chain, and we will be a significant contributor to the Coastal Communities Fund once the wind farm is operational,” he adds.

FLAGSHIP FOR UK In December 2020, Prime Minister Johnson was onsite in Northumberland, describing the work behind the scenes as vitally important for economic recovery and significant for job creation efforts in the region. Eventually able to supply 5% of the UKs demand, the size of the project is a demonstration to the rest of the industry, country and the world of exactly what is possible.

“The scale and innovation involved in building this futuristic wind farm present challenges which in many instances are unique to

the industry. But, after more than 12 months of exceptional delivery, we’re confident in the experience and capability of our team in rising to this challenge,” says Wilson.

Progress continues to involve not just UK suppliers but big-name offshore contractors from all over the world. In April, it was announced that Norway’s VARD would supply designs for three Service Operation Vessels for Scotland’s North Star Renewables to use solely on the Dogger Bank project. North Star gained a £270 million contract to deliver the three vessels from 2023, creating significant local employment.

Dutch contractor, Bakker Magnetics was awarded a contract

by GE Renewable Energy to supply magnetic modules used in the massive 135m high, 107m long turbines. The company received a €3.9 million loan

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DOGGER BANK WIND FARM

// THE SCALE AND INNOVATION INVOLVED IN BUILDING THIS FUTURISTIC WIND FARM PRESENT CHALLENGES WHICH IN MANY INSTANCES ARE UNIQUE TO THE INDUSTRY // to expand its manufacturing facilities in Eindhoven.

The Haliade-X turbines, provided

by GE Renewable Energy, will be able to supply more than two days of electricity for an average UK home following just one single rotation.

The project will be the first to use this new iteration of turbine in a step change for the efficiency of offshore wind farm production. But installing infrastructure of such size takes a new approach. Blades manufactured at a new facility in Teesside, put up by LM Wind Power (a GE Renewable Energy subsidiary), will be moved offshore to the Voltaire, a brand-new jack-up installation vessel from Jan de Nul capable of lifting 3000 tonnes.

OHT will utilise the Alfa Lift vessel to support installation of the foundations in 2021. The super-sized vessel has a 3000-tonne main crane and a 10,000 m2 smart deck which can carry 14 XL monopiles or 12 jackets on each voyage.

Currently under construction, Alfa Lift is another record breaker which highlights the scale of Dogger Bank.

“And it’s not just on the technology front where we’re breaking records,” insists Wilson, “because in late 2020 we announced a £5.5 billion project financing of the first two phases of the development, which was the largest offshore wind project financing ever.

The high level of interest we received from lenders wanting to be part of the project demonstrates the solid business case and the progress we’ve already made. In December, we were proud to win Project Finance International’s Global Green Deal of the Year award.

We’ve now warmly welcomed Eni to the Dogger Bank team as a shareholder in the first two phases and look forward to working with them on our groundbreaking venture.”

During 2020, with the pandemic raging, the UK still managed to see offshore wind sector investment grow by 70%. Europe invested €43 billion into wind projects in 2020 with the hope of bringing about 20GW of extra capacity.

However, there is some suggestion that more is needed with critics saying 27GW of new wind energy is needed annually

if the EU is to meet its target of a 55% emissions reduction. With big name majors, traditionally active in oil and gas, now joining the wind revolution it will not be long before funding moves in even bigger numbers.

Halfdan Brustad says: “This wind farm is more than just the world’s biggest. We’re using the latest turbine technology, innovative foundation and substation design, and utilising our offshore experience to introduce new methods of transmission to the UK that will benefit other large wind farms in the future. The project represents a game-changer globally for offshore wind and supports Equinor’s strategy of accelerated growth in renewables.

“The development of Dogger Bank will create an industrial wind hub in the heart of the North Sea, playing a major role in the UK’s ambitions for offshore wind and supporting the net zero ambition. Excellent wind speeds, shallow waters, synergies and scale make Dogger Bank well positioned to deliver low-cost renewable electricity to UK homes and businesses.”

Between 2020 and 2026, it is expected that £9 billion in total capital investment will be ploughed into the Dogger Bank projects. For Steve Wilson, the long-term benefits are clear and necessary, and the colossal size of the project is helping to drive everything.

“When the project is fully operational in 2026, it will be capable of producing enough renewable energy for six million UK households, or 5% of the UK’s electricity requirements. We welcome the UK Government’s increased ambitions to power every home in the UK with offshore wind over the next decade as the industry creates long-term jobs, and provides a real opportunity to emerge from the pandemic with a greener future,” he concludes.

WWW.DOGGERBANK.COM

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FINERGREEN

Making Renewable

Transactions Happen PRODUCTION: David Napier

By driving the flow of money into the renewables space, Finergreen – a boutique financial advisory business – is helping to speed up the transition away from fossil fuels in economies all over the world. Founder and CEO, Damien Ricordeau talks to Energy Focus about exciting projects underway right now.

//

A fundamental transition, away from economies run on carbon-based fuel, towards renewable, sustainable, long-term solutions is needed globally, and this news is not new. In the early twentieth century, academics were aware of, and reporting, the impact of burning fossil fuels, like coal, and the subsequent release of carbon dioxide.

It’s a problem that has never really seen any prospect of real change as oil and gas added to coal to leave an entire industry, and entire planet, relying on non-renewables. But, in the past two decades progress has been stepped up, with technology and appetite for change accelerating. Solar, wind, hydro, wave, biogas, hydrogen – all have received major attention in an attempt to halt global heating and improve

14 / www.energy-focus.net

long-term prospects for the climate.

However, it is at the very heart of the system where progress has been notable. For any project to succeed, there must be money to inject.

Investors must be able to realise returns, and there must be a business case for cash to flow into new ideas.

For too long this was not the situation.

Solar and wind power was extremely expensive and unreliable, biogas and hydro plants were very technical and required years of preparation. Today, the scenario is different.

Couple a burgeoning demand from the public for governments and big businesses to change their ways, and a drive from those with money to ensure their assets are managed with ESG principles, now renewables are the attractive option.

And considering the reinvention and transformation of Orsted (formerly DONG Energy), which has proven that renewable energy can be profitable, a new path is being sought.

Helping, financially, for people to step in the right direction is boutique financial advisory Finergreen.

Headquartered in Paris, but with a global footprint, this specialist renewable energy finance business is focussed on mergers and acquisitions, project financing and strategic advisory.

Founded by Damien Ricordeau in 2013, this exciting business has grown significantly from a single employee business with big aspirations, becoming home to 60 highly skilled industry experts across 10 locations, boasting €3 billion of transactions representing 10 GW of assets.

INDUSTRY FOCUS: FINANCE

“Last year, we were ranked number two in the world in terms of the number of transactions completed in renewable energy space with 26 transactions, just behind a major longestablished global player who made 30. This year, we will make more than 30 transactions and typically we are busy with major renewable projects,” Ricordeau tells Energy Focus.

GROWING PRESENCE Ambitious and searching for growth opportunities, mainly in emerging markets, Finergreen opened four new offices over the past two years – quite the feat considering market conditions, heavily hampered by the Covid-19 pandemic.

The strategic openings are designed to give the company full coverage of chosen markets and allow decision making to take place close to clients.

“I created the business in France by bringing in interns who had just finished university,” says Ricordeau.

“It was a new market and we learned together. I employed them as soon as I had the money to do so. I then began opening offices so that we could grow.

The first two were in Abidjan and then Singapore. They were created by two ex-classmates of mine from Dauphine Université, Jean-Jacques Ngono and Rohan Singh.

“In 2020 and 2021, we opened four offices; one in Madrid to cover

// THE CHALLENGE WITH RENEWABLE ENERGY IS THE INTERMITTENCY OF PRODUCTION AND WE NEED TO FIND A SOLUTION FOR THE STORAGE // 16 / www.energy-focus.net

southern Europe, and one in Budapest to cover eastern Europe. In Madrid, we now have 10 people, in Budapest we have five people, and we are continuing to grow and expand our regional presence. This year, we opened in Cape Town to cover southern Africa and give us good coverage across all of Africa, and we opened in Sao Paulo to improve our covering of south America.”

While others were taking time to rethink strategy and investigate outcomes of the pandemic, Finergreen was on the front foot - opening in new regions, finding new opportunities, and making new things happen. This aspiring company was prepared for the challenges that came and was a first mover in its service line.

“Globally, banks and investors have been slower to make decisions,” admits Ricordeau. “Instead of making deals in six months, the process could now taking nine months. Firstly, we have an increase in the duration of the deal and, secondly, in some regions, mainly emerging countries, we may face difficulties. For example, in Mexico, because of Covid, there is a change of flow and they have stopped renewable investment. From one day to the next, all the projects in the country were stopped. For us, with an office in Mexico, we had to refocus on South America and work on deals in Colombia and Chile. We had to switch

the business and focus on these countries where there were fewer issues. I think we managed it well but, typically, there were some difficulties from the Covid impact.”

In Mexico, the State owns the thermal plants and saw a decline in revenue as renewable projects delivered electricity at a more competitive rate. With renewable power served first, the State purse was weakened. So, quickly, renewable investment was cancelled and the grid, and the consumer, was forced back to the thermal plants, ensuring cashflow for the State and less money for private developers and owners, but ultimately costing and polluting more.

Nevertheless, Finergreen’s new offices have opened with aplomb and are ramping up pipelines and activity.

For Ricordeau, the key is being brave and patient.

“It is not easy but we are doing well,” he smiles. “Opening an office takes two or three years before you have something profitable. In the first year, you are finding clients and then executing the mission. When you have executed, you are eventually paid. You must have patience and perseverance to make these things happen.

Typically, in emerging countries, things are a little slower and you must have courage. When it’s done, and you have your place, you have a strong position in the market.”

FINERGREEN

In terms of location for the next round of expansion, Finergreen is targeting emerging markets. For Ricordeau, less competition, larger opportunities, and the ability to truly make a difference is attractive. Impact, risk, and return are all appealing, and in regions across Africa, the opportunities are vast for socioeconomic development. According to the International Energy Agency (IEA), the transition is already underway in emerging markets, with several multibillion dollar deals beginning to flow in the post-pandemic era.

Finergreen is in Africa and talks the local language.

“We set up there, firstly, as it makes sense. In Africa, half of the population doesn’t have access to electricity and the idea is to help those countries access electricity through

renewable energy. That is why we set up our first foreign office in Africa in 2016. Secondly, in the West, there is a lot of competition and emerging countries have more need, so it makes sense for us to find an angle in the market and develop ourselves without too much competition.

“We often visit on the ground and this is why we have local offices. We could work on African projects from the office in Paris but that is not our style. We have local offices in Africa to follow African projects. Each year, we go to each office and visit the sites. In March, I was at the office in Abidjan and we visited a dam. Last year, we had the whole company in France to visit a biogas plant. Our team is well educated with most having degrees across both finance and engineering,” says Ricordeau.

BOUTIQUE FINANCING The current list of projects underway across the Finergreen landscape is matched only by some of its historic achievements. Well-known in the industry as a market expert, with Ricordeau’s previous work at the Edmond de Rothschild asset management group driving a rich heritage, Finergreen is an innovator and is changing the way deals are done.

“We just closed a bridge financing project for hybrid PV-diesel assets in Madagascar,” details Ricordeau, talking of recent initiatives. “This is the first time this has ever happened in that country, and we managed to finance PV assets with diesel plant which reduces pollution thanks to less consumption of diesel and reduces costs of electricity as we have negotiated with the State of

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INDUSTRY FOCUS: FINANCE

Madagascar for a reduction in the PPA for the sale of electricity. The result is a win-win deal for the State and the private owner. We managed to set up the financing and we already have two PV plants in operation there.

“In Spain,” he adds “with our client, we signed a MOU to produce 3GW of hydrogen by 2025 and we oversee the financing for this project.

The 3GW is for one client who needs it for its industrial processes.

“In Burundi, we are currently financing a 10MW hydro plant. This plant will add 10% of the capacity of

electricity production of the country.

Here, less than 15% of the population has access to electricity today. We managed to grow access to electricity through this project and we managed to get proper financing for the project.

“We are doing a big refinancing of the biogas portfolio for a major oil and gas company in France.

In Thailand, we finance a portfolio of C&I projects – a lot of rooftop PV plant which we finance through debt funds from Europe,” he says, highlighting the global nature of the business.

// LAST YEAR, WE WERE RANKED NUMBER TWO IN THE WORLD IN TERMS OF THE NUMBER OF TRANSACTIONS COMPLETED IN RENEWABLE ENERGY SPACE //

CEO - Damien Ricordeau.jpg

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Thankfully, the company can call upon multiple case studies to demonstrate its superiority. This is why Finergreen continues to succeed: It builds trust with clients. This is vital in raising funds, project financing, and completing M&A deals. “Last year, we raised €100 million through global equity for a French company with offices in the USA, Chile, and South Africa. This was a flagship for us.”

Today, renewables represent more than one third of the world’s installed capacity but just 26% of electricity produced globally. Within that, hydropower is responsible for almost 16%, with other renewable sources – wind and solar – bringing just 8%.

Clearly, in electricity, heating, cooling, and transportation there remains major opportunities.

FUTURE POWER Finergreen uses a combination of sources when it comes to funding renewable energy projects. The company’s staff is connected, globally, to various funding solutions, and partners with government and central banks to deeply understand the markets in which it operates.

“75% of our clients are private developers so it could be small developers or large utilities. We work on the sponsor side and our network is totally global. On the bank side, we work with commercial banks and development banks for emerging countries; and on the investor side, we work with financial investors, family offices with dedicated funds, and industrial players including independent power producers,” explains Ricordeau.

Going forward, as investment flows more readily into the renewable industry, and banks and other lenders become more confident in returns, the mindset looks set to switch to the ongoing problem in this sector: Storage.

As generating capacity is improved, especially in emerging regions, the storage and subsequent distribution of

FINERGREEN

Finergreen global team

clean power requires investment.

“The challenge with renewable energy is the intermittency of production and we need to find a solution for the storage – that is where the new wave of projects will come,” confirms Ricordeau.

“There are two possible solutions, either batteries or hydrogen. It is clear that in the short term, batteries are better. There are a lot of battery projects, and we are working on that.

In the long-run, I think hydrogen will be the best solution as there is a capacity of storage of months compared to batteries which give you hours or days. We are working now on hydrogen projects which, in the next ten years, will become extremely important in the energy space.”

For hydrogen to be used in storage a regenerative hydrogen fuel cell (RHFC) system is required.

This converts electricity to hydrogen through water electrolysis, effectively stores the hydrogen, and can then supply that hydrogen to a fuel cell to create new electric power. Currently systems provide more energy than regular lithium-ion batteries. Constant innovation is coming through in this

area to ensure the solar, wind and wave plants of the future are useful to the grid.

Away from storage, Finergreen is busy with other projects that look at all elements available for the creation of electricity – even those that may have been overlooked of misunderstood in the past; a clear feature of a business that is excited and motivated about development.

“We are supporting a company that is making coal for barbecues and we use the remaining gas to make electricity. This is a new wave of biogas project and you burn the ultimate waste which cannot be used for anything else to make electricity.

Secondly, we are working on investment into electromobility where a lot of Capex is going into developing stations for recharging electric vehicles. We are currently financing the first project like that in France at utility scale,” says Ricordeau, talking about the company’s future focus.

Longer term, this efficient and forward-thinking business will further its presence globally, although no decisions have been taken on the next office.

“Cape Town and Sao Paulo have just opened, so we prefer to consolidate our ten offices before thinking of new openings.”

There is also scope for the size of the transaction undertaken by Finergreen to grow too. Thankfully, this is a business that not only sees the financial potential in the move away from fossil fuels, but Finergreen is actively making it happen from within the industry. When money moves, progress can truly be made.

“We work with large and small.

Typically, we work with transactions from €10-200 million. We are not a huge player, but we are not small and that means we are boutique and can work with anyone in any part of the world.

Our team speaks 15 languages, and we follow our clients everywhere, speak the local language and make sure we can make business transactions happen,” Ricordeau concludes.

WWW.FINERGREEN.COM

www.energy-focus.net / 19

BP

Net Zero Strategy

Set for Success PRODUCTION: William Denstone

With operations in Europe, North and South America, Australasia, Asia and Africa bp delivers heat, light and mobility to customers all over the world. Strong recent results in an improving post-Covid environment alongside astute acquisitions and partnerships are realising bp’s ambitious net zero targets and seminal transition to an Integrated Energy Company. www.energy-focus.net / 21

INDUSTRY FOCUS: ENERGY MAJOR

//

A story which began in 1908 with the discovery of oil in Persia, bp’s has always been about transitions - “from coal to oil, from oil to gas, from onshore to deep water, and now onwards towards a new mix of energy sources as the world moves into a lower carbon future.”

The crux of the next phase upon which bp will embark is the ambition to become a net zero company by 2050, or sooner, and to help the world as a whole achieve the same. “Our strategy will reshape our business as we decarbonise and diversify into different forms of energy, such as renewables, biofuels and hydrogen.

“Oil and gas will get smaller over time but will remain an important part of bp.” Steeped in 100 years of experience and knowledge at the heart

of the world of energy, bp’s trailblazing new strategy will see it become a fundamentally different company in the next decade and beyond.

NET ZERO AMBITION “We aim to be a very different kind of energy company by 2030 as we scale up investment in low carbon, focus our oil and gas production and make headway on reducing emissions,” bp summates, and five aims underpin the strategy.

Chief among these is to achieve net zero across the entirety of its operations on an absolute basis, by 2050 or sooner, as well as across the carbon in upstream oil and gas production.

Bp will also halve the carbon intensity of the products it sells by the middle of the century. Largely harnessing portfolio management,

// OUR AMBITION IS TO BECOME A NET ZERO COMPANY BY 2050 OR SOONER, AND TO HELP THE WORLD GET TO NET ZERO //

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including divestments and decarbonisation, bp will curtail the CO2 emissions produced per kilowatt hour of electricity consumed and improve carbon intensity of by providing products with lower life cycle emissions.

The installation of methane measurement at all existing major oil and gas processing sites by 2023 will then drive a 50% reduction in the methane intensity of bp’s operations, and in turn spur all bp’s joint ventures to set methane intensity targets themselves of 0.2% by 2025. “We are also investing in technology to reduce methane and improve our ability to measure it,” bp adds.

“The deployment of new measurement technology represents a major step-change in our industry’s approach to detecting, quantifying and reducing methane emissions.”

This all hinges on the fifth target - to increase the proportion of investment made into non-oil and gas businesses. “We’ve already started the switch towards clean energies,”

BP

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the company stresses. “We made low carbon investments totalling $750 million in 2020 and more than $500 million in 2019, with new projects agreed coming onstream.”

This investment is targeted toward low carbon electricity generated from low carbon energy sources – including

// BP HAS BEEN AN INTERNATIONAL OIL COMPANY FOR OVER A CENTURY. NOW WE ARE PIVOTING TO BECOME AN INTEGRATED ENERGY COMPANY //

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wind and solar, bioenergy and hydrogen and carbon capture (CCUS). According to Bernard Looney, CEO: “The direction is set. We are heading for net zero. There is no turning back. The world’s carbon budget is finite and running out fast; we need a rapid transition.”

OPEN ENERGI ACQUISITION Established in 2018, bp Launchpad’s team of in-house business builders turns breakthrough technologies and digitally-led business models into high potential businesses, to help re-imagine energy for people and the planet. bp Launchpad has to date invested in the likes of Finite Carbon, Onyx Insight and Fotech Solutions, and these have just been joined by a sixth, in the form of UK-based digital energy optimisation business Open Energi.

Open Energi’s technology optimises

the energy use of low-carbon assets, from battery storage to hydrogen electrolysers and solar farms, helping to create cost saving and giving traders access to real-time data. Over the past decade Open Energi has developed into a prominent energy technology company, whose products and services are used to optimise the performance of a network of energy assets with a total capacity of over 80MW. “Open Energi’s technology helps manage the intermittency of increasing global renewable capacity, creating both energy saving and revenue opportunities,” expounded Sam Skerry, Senior Vice President bp Launchpad and Ventures. “The acquisition will help bp develop digitally-driven integrated energy systems and deliver innovative, efficient and flexible energy solutions for customers.

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INDUSTRY FOCUS: ENERGY MAJOR

“As the world’s renewables capacity continues to grow, we’re excited to work with Open Energi to help optimise the cost of energy and the performance of low carbon energy assets, and support our wider customer offer.” The share of the primary energy from renewables is projected to increase from around 5% in 2018 to 60% by 2050 in bp’s Net Zero scenario. These digital platform technologies help to flexibly balance

// THE DIRECTION IS SET. WE ARE HEADING FOR NET ZERO. THERE IS NO TURNING BACK //

supply and demand, and maximise the performance of low carbon energy resources.

“For the growing renewable energy capacity the world needs to meet global carbon reduction targets, we will need efficient energy optimisation. As such Open Energi is fantastically positioned to grow, and we could not be more excited to be partnering to deliver that growth with bp Launchpad,” rounded off David Hill, Open Energi Commercial Director.

“Its role within the business will allow us to maintain our independence, while bp’s net-zero ambition and its new strategy align perfectly with our ambition and vision.”

POWERFUL PROGRESS Within 10 years, bp aims to have increased its annual low carbon

investment tenfold, to around $5 billion a year, constructing an integrated portfolio including renewables, bioenergy and early positions in hydrogen and CCUS. By 2030, the aim is to have developed around 50GW of net renewable generating capacity, a colossal twentyfold increase from 2019, and to have doubled its consumer interactions to 20 million a day.

“Bp has been an international oil company for over a century - defined by two core commodities produced by two core businesses. Now we are pivoting to become an integrated energy company - from International Oil Company (IOC) to Integrated Energy Company (IEC),” it says of the seismic shift from a company driven by the production of resources, to one that is focused on delivering energy solutions for customers.

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BP

// OPEN ENERGI IS FANTASTICALLY POSITIONED TO GROW, AND WE COULD NOT BE MORE EXCITED TO BE PARTNERING TO DELIVER THAT GROWTH WITH BP LAUNCHPAD // Since outlining its new strategy a year ago, bp has made strong progress in its transformation to an IEC. Strong results in the second quarter and half-year of 2020 highlight resilient operating performance, with four major project start-ups, material growth in convenience gross margin and delivery of $2.5 billion of cash costs savings around six months earlier than targeted.

All in all, the last year has seen bp deliver eight major projects, build a 21GW renewable pipeline, increase

convenience and electrification, reached over $10 billion of divestment proceeds and begun share buybacks.

“We are a year into executing bp’s strategy to become an integrated energy company and are making good progress - delivering another quarter of strong performance while investing for the future in a disciplined way,” summarised Looney.

“This shows we continue to perform while transforming bp generating value for our shareholders today while we transition the company

for the future.” It also demonstrates clearly that bp is perfectly on track to dramatically reduce carbon in its operations and production, and grow new low carbon businesses, products and services.

“Our purpose is reimagining energy for people and our planet,” bp reflects.

“We want to help the world reach net zero and improve people’s lives.

“This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone. We believe our new strategy provides a comprehensive and coherent approach to turn our net zero ambition into action.”

WWW.BP.COM

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TOTALENERGIES

Energy Transition Sparks

Total Transformation PRODUCTION: William Denstone

In June it was officially unveiled that French group Total, one of the world’s biggest energy companies, had finalised its rebranding to TotalEnergies SE, with a brand-new logo to boldly usher in its transition to net zero. In the midst of its transformation into a broad energy company, and renewable subjected to a keener focus than ever, oil remains integral to TotalEnergies’s seven key energy segments, buoyed by news of the fourth phase of the giant Mero deep-water project.

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INDUSTRY FOCUS: ENERGY MAJOR

//

A broad energy company, TotalEnergies produces and markets energies on a global scale, from oil and biofuels, natural gas and green gases to renewables and electricity. 105,000 employees are committed to making energy increasingly more affordable, clean, reliable and as accessible as possible.

Active in more than 130 countries, TotalEnergies puts sustainable development at the heart of its operations and movements; a commitment that comprises four key elements. It strives to create value for society and generate shared prosperity across regions, while retaining its leading name as an employer and a responsible operator.

Environmental excellence is at the fore, too, pushing progress around environmental stewardship.

Arguably most pivotal is the group’s desire to lead the transformation of the energy model

Digital Industrial at the Oleum Training Centre. © Zylberman Laurent, Graphix Images, Total

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to combat climate change, and respond to people’s needs through prioritising sustainable energies to an unprecedented degree.

“We are reinventing and diversifying our energy offering to promote renewable and decarbonised energies,” TotalEnergies explains, “as well as sparing, well-considered use of fossil energies.

“By moving to new energies, we are also encouraging our customers to change their consumption habits, prefer energy efficiency and turn to low-carbon solutions first.”

FULL OF ENERGIES On May 28th this year, this drive was solidified in the most definitive way possible when, after an almost unanimous shareholder decision at the Annual General Meeting, Total officially became TotalEnergies, anchoring its strategic transformation into a broad energy company in its identity.

// WE ARE REINVENTING AND DIVERSIFYING OUR ENERGY OFFERING TO PROMOTE RENEWABLE AND DECARBONISED ENERGIES // “Energy is life. We all need it and it’s a source of progress,” expressed Patrick Pouyanné, Chairman and CEO of TotalEnergies. “So today, to contribute to the sustainable development of the planet facing the climate challenge, we are moving forward, together, towards new energies.

“Energy is reinventing itself, and this energy journey is ours. Our ambition is to be a world-class player in the energy transition. That is why Total is transforming and becoming TotalEnergies.”

The overarching aim is to reduce direct emissions to net zero by 2050, via a carbon neutrality ambition that is as grand as it is admirable. With $60 billion earmarked to finance renewable projects over the coming 10 years, TotalEnergies is seeking its seat among the world’s top five renewables companies by 2030.

“This decision aims to anchor in our identity the strategic transformation we have undertaken,” went on Pouyanné, “so we can fulfil our mission of providing more affordable, clean and reliable energy to as many people as possible more effectively than ever.

“More energy, fewer emissions: that is the dual challenge the world and the energy industry are facing. At TotalEnergies, we intend to help meet that challenge.”

The re-imagined new name is twinned with a refreshed visual identity to fully distinguish TotalEnergies, as it

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// OUR AMBITION IS TO BE A WORLD-CLASS PLAYER IN THE ENERGY TRANSITION // blazes the trail it has so determinedly set for itself to become the exemplar broad energy company. “The T and the E of TotalEnergies draw a symbol, the energy journey,” TotalEnergies says of its logo, “it is a journey, a path whose course is in motion. It starts from our origin, Total, and leads to the new TotalEnergies brand.”

There are seven colours, for as many energies. Oil begins this depiction, with shades travelling through natural gas, electricity, hydrogen and biomass to wind and solar. “In the coming decade, TotalEnergies will become a truly broad energy company and major player in the energy transition so we can contribute to the planet’s sustainable development in the face of the climate challenge,” summed up Pouyanné.

MEANINGFUL GROWTH The transformation is underpinned by a raft of shifting balances, away from old priorities and very much toward a new era and picture. Between now and 2030 natural gas will look to grow in sales even further, from 40% to 50%, while oil will see a marked drop from representing the vast majority of sales at 55% to 35% over the next decade.

Biofuels production will also look to explode, up to five million tons per year from less than one million currently, while EV charge points look set to become vastly more numerous and hit 150,000 by 2025.

In line with its ambitions TotalEnergies is naturally targeting renewable energies in a massive way, in terms both of investment and gross capacity over the next 10 years. At

Technicians at the CSTJF © Gilles Leimdorfer - Total

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present this stands at seven gigawatts, set to increase to almost twice the installed capacity of the French nuclear fleet (60W) and reach 100GW by 2030.

Renewable electricity production growth ambitions gained real traction in 2020, more than doubling in just one year. Several agreements signed both last year and this have swelled TotalEnergies’s solar power portfolio, including entry into the fast-growing Spanish market with 5.3GW of photovoltaic projects developed with three partners: Powertis, Solarbay Renewable Energy and Ignis.

TotalEnergies has also made a meaningful entrance into offshore wind power, with a project portfolio offering a cumulative capacity of around 5.5GW staking out a strong position.

“In the United Kingdom,” the group details, “we’ve invested in Erebus, a pioneering floating offshore wind project in the Welsh Celtic Sea, and in Seagreen, the largest offshore wind farm project in Scotland.

TOTALENERGIES

Storage trays and units of the Port Arthur refinery, Texas. © Guillaume Perrin, Total

“In South Korea, we have a 50-50 partnership with Macquarie to develop a portfolio of five floating offshore wind farms, and in France we acquired a stake in EolMed, a pilot floating wind project in the Mediterranean.

TotalEnergies brings its expertise in offshore operations to this leadingedge industry.”

BRAZIL OIL PROGRESS TotalEnergies’s new identity was proposed when it presented its full-year 2020 results in February. The company outlined a plan to sharpen its focus on LNG, renewables, and electricity, alongside the associated drop in oil product sales. The key word in its transition is broad, however, and while reliance on it will diminish, TotalEnergies is still wholeheartedly committed to viable large-scale oil developments.

“In a volatile oil and gas market,” the company says, “our strategy is to invest selectively in projects with

// THE DECISION TO LAUNCH MERO 4 MARKS THE LAST MILESTONE IN THE LARGE-SCALE DEVELOPMENT OF THE MERO OIL RESOURCES // competitive production costs. Our investment objective is to focus on quality over quantity. Exemplifying this is Mero, a deep-water field located 180 kilometres off the coast of Rio de Janeiro in the prolific pre-salt area of the Santos Basin, and already the site of several discoveries.

In August, we learned that the Mero 4 Floating Production Storage and Offloading (FPSO) unit will boast a liquid treatment capacity of 180,000 barrels per day and is expected to start up by 2025. It follows investment decisions for Mero 1,2 and 3, each expected to start up a year after the other commencing in 2022, and all of to have the 180,000 barrels capacity.

“The decision to launch Mero 4 marks the last milestone in the largescale development of the Mero oil resources,” concluded Arnaud Breuillac, President Exploration & Production at TotalEnergies. “This giant project is in line with TotalEnergies’ growth strategy in Brazil which is to produce oil at a competitive cost out of world class fields while limiting CO₂ emissions to a strict minimum.”

WWW.TOTALENERGIES.COM

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BHP

Re-Positioning for a

Sustainable Future PRODUCTION: William Denstone

BHP is among the world-leading diversified resources companies, and more than 80,000 employees and contractors are implicated in the drive to extract and process minerals, oil and gas, primarily in Australia and the Americas. Strong financial results and a record dividend are positioning BHP remarkably strongly for the future, where it envisages that the renewable energy transition will be pivotal to sustainable mining. www.energy-focus.net / 33

INDUSTRY FOCUS: OIL & GAS

//

“Our purpose is to bring people and resources together to build a better world,” BHP, formerly BHP Billiton, sets out of a strategy which enables it to access the best capabilities, best commodities and best assets. “BHP is a diversified resources company.

We produce different types of commodities essential to modern life.”

Since 1851 BHP has been integral to developing and contributing to industry, communities and economies around the world, burgeoning from beginnings at a tin mine on the littleknown island of Billiton (Belitung) in Indonesia to become a world leader in the diversified resources industry.

By 2017 BHP’s market capitalisation placed it as the world’s largest mining company, and Melbourne’s third-largest company by revenue.

DIVERSE OPERATIONS Between Minerals Australia and Minerals Americas BHP’s capabilities span projects, operated and non-operated assets encompassing copper, iron ore, coal, nickel, zinc and potash. The Australian arm’s assets include Olympic Dam, one of the world’s largest deposits of copper, gold and uranium, as well as its significant iron ore and coal interests.

// WE PRODUCE DIFFERENT TYPES OF COMMODITIES ESSENTIAL TO MODERN LIFE //

Queensland Coal, for instance, comprises Australia’s largest producer while Western Australia Iron Ore boasts four processing hubs and five mines, connected by more than 1,000 kilometres of rail infrastructure and port facilities.

A world-leading producer of copper concentrate as well as zinc concentrate and thermal coal, Minerals Americas holds copper operations including the major Escondida mine in the Atacama Desert in northern Chile, the Spence and

Mike Henry

34 / www.energy-focus.net

BHP

Cerro Colorado duo forming its Pampa Norte operation and a large share in Antamina, a large, low-cost copper and zinc mine in north central Peru.

BHP has also owned oil and gas assets since the 1960s and a vast Petroleum unit covers conventional oil and gas operations including exploration, development and production activities. “Today, we have high-margin oil and gas assets located all around the world,” states the company.

“We do big things in the right places. Our heartlands are concentrated positions where we can build businesses greater than the sum of their parts,” BHP explains. “These have had some of the highest margins in BHP and helped to create impactful economic and social partnerships in local communities.”

High-margin conventional assets are located in the US Gulf of Mexico, Australia and Algeria, as well as appraisal and exploration options in Mexico, Deepwater Trinidad and Tobago, Western Gulf of Mexico and Barbados.

“Today, we hold nearly 3.2 billion barrels of oil equivalent in resource,” details Geraldine Slattery, President of Operations, Petroleum. “We continue to add to this resource base through exploration or acquisition, and we continue to unlock commercialisation through technology and strategic partnerships.”

SUSTAINABLE FUTURE “In oil and gas,” BHP cautions, “you must always have one eye on the future. We have the right strategy to succeed and petroleum is set up to thrive well into the future.” This unbending focus on the future bleeds through BHP’s entire approach and outlook, embodied by its firm commitment not just to driving global economic and improving standards of living, but also in leading the energy transition.

“We are proactively positioning for the future with a portfolio and capabilities that will enable us to grow

long-term value,” CEO Mike Henry informs. “We will sustainably supply the commodities needed by the world.”

This was most recently evidenced by the revelation in August that BHP’s Escondida and Spence operations in Chile had begun operating with renewable energies, the contracts with ENEL Generación Chile and Colbún being the largest signed by an unregulated client in the country.

“The entry into force of the first renewable energy contracts is a significant contribution to BHP’s global transition towards achieving zero emissions by 2050,” BHP commented. “It is an important milestone for the Escondida and Spence operations, which will be supplied with 100% renewable energy as from the middle of this decade.

“BHP’s transition towards the

// OUR PURPOSE IS TO BRING PEOPLE AND RESOURCES TOGETHER TO BUILD A BETTER WORLD // use of renewable energy builds on the water strategy that it has been developing since 2006 – when its first desalination plant was commissioned - and which today allows Escondida to operate with 100% desalinated water. The use of renewable energy and desalinated water are part of BHP’s global strategy to develop more sustainable mining.”

The contract with ENEL Generación Chile replaces a coalbased supply contract, which was

www.energy-focus.net / 35

INDUSTRY FOCUS: OIL & GAS

// THE USE OF RENEWABLE ENERGY AND DESALINATED WATER ARE PART OF BHP’S GLOBAL STRATEGY TO DEVELOP MORE SUSTAINABLE MINING // terminated early in order to accelerate the transition to cleaner sources.

The replacement of fossil-fuel based contracts with those based on 100% renewable energy will displace more than three million tonnes of CO2 per year from 2022, the equivalent of the annual emissions of around 700,000 combustion-engine cars.

It is added to the estimated

36 / www.energy-focus.net

1.7 million tonnes of CO2 to be supplanted between 2021 and 2025 at BHP’s Queensland Coal mines, following a renewable power purchasing agreement to meet half of its electricity needs across its from low-emissions sources, including solar and wind.

“This is an important step forward in BHP’s transition to more sustainable energy use across our portfolio, and a first for our Australian operations,” BHP’s President Minerals Australia, Edgar Basto, said. “It is a prime example of prudent business decisions going hand-in-hand with social value, strengthening our business and benefitting the community.”

RECORD RETURNS “The future is clear, and it’s happening now,” BHP abridges, at what looks to be the dawn of a momentous new era for this monolith

of global resources. “At BHP we’re focussed on the resources the world needs to grow and decarbonise sustainably. A resources mix for today, and for the future.”

The desire to build a better world and pursue new opportunities is staunchly backed by the recent announcement of record returns, with a final dividend of US$2 per share bringing total shareholder returns to more than US$15 billion for the year.

Alongside strong financial results and a record dividend, BHP also announced major reorganisation of its portfolio and corporate structure, positioning it even more strongly to grow value through producing the commodities the world needs for economic growth and decarbonisation. Among the headlines were investment of US$5.7 billion in the Jansen Stage 1 project

BHP

in Canada, a new high-margin business in the world’s best potash basin opening up a new future growth front for BHP. A further striking revelation was the intended creation of a global top 10 independent energy company through a merger of BHP’s petroleum business with Woodside. This would streamline BHP’s corporate structure to a single primary listing on the

// BHP’S PRODUCTS ARE ESSENTIAL TO GLOBAL ECONOMIC GROWTH, IMPROVED LIVING STANDARDS AND THE ENERGY TRANSITION //

Australian Securities Exchange, lending BHP a simpler and more agile aspect for the historic times ahead.

“BHP is in a strong position to manage its future in a time of rapid change,” underlined BHP Chair, Ken MacKenzie. “Jansen Stage 1 will give BHP exposure to a commodity with a strong demand outlook and decades of potential growth. The agreement to pursue a merger of BHP’s Petroleum business with Woodside will maximise the value of our oil and gas assets through increased operating scale and synergies, with a more diversified product portfolio to support the energy transition.

“Now is the right time to unify BHP’s corporate structure. BHP will be simpler and more efficient, with greater flexibility to shape our portfolio for the future.”

“BHP’s products are essential to global economic growth, improved

living standards and the energy transition,” put forth Mike Henry in concluding. “The world will need more copper and nickel for electrification, renewable power and electric vehicles, iron ore and highquality metallurgical coal to produce the steel for infrastructure, including that required for decarbonisation, and the potash required for sustainable global food production.

“We are actively positioning BHP to meet the world’s needs and to continue to sustainably generate value for our shareholders, employees, and business partners, as well as for our host communities and governments.”

WWW.BHP.COM

www.energy-focus.net / 37

VESTAS

Wind Power That Means the World PRODUCTION: Timothy Reeder

With more than 140GW of wind turbines installed in 85 countries, Vestas has installed more wind power than anyone else. The energy industry’s global partner on sustainable energy solutions, Vestas designs, manufactures, installs and services wind turbines across the globe, securing orders across an ever-wider footprint and producing the results to match.

//

“Our exceptional performance continues to be the driving force behind the rapid growth of renewable energy availability around the world,” Vestas begins, and its 110 years of expertise, willpower, and passion back these lofty claims and enable it to harness the power of this modern energy source, while markedly raising the profile of wind as a mainstream energy source.

“With more than 40 years in the wind industry, Vestas has more experience than anyone else in making wind work.”

An unmatched track record of successfully implementing more than 140GW of wind power capacity, including more than 7GW offshore, forms the backbone of Vestas’ expertise and unrivalled experience, and powers continuous product improvement and performance optimisation.

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Vestas turbines have been installed in 85 countries around the world and operate on every kind of site, from high altitude to extreme weather conditions, meeting these diverse challenges through purpose-driven product development and extensive testing at the industry’s largest facility.

NATURAL ENERGY REPLACEMENT Fossil fuels are of course a finite resource, and, when consumed for long enough, their global stocks will unavoidably eventually disappear. “The natural replacement is sweeping freely around the earth,” Vestas proposes. “Wind. It is renewable, predictable, fast to install, clean and commercially viable.”

Vestas has installed the first wind power plants in more markets than anyone else, establishing itself as the true pioneer of the industry and unbendingly

committed to raising the profile of wind as a mainstream energy source.

Vestas has spent its last 40 years specifically focussed on the wind energy industry, continuously pioneering new technologies and solutions to bring reliable solutions to every corner of the globe, and along the way plant the seeds of the modern wind industry.

“Every single project that Vestas has undertaken represents a journey in itself, helping us to mature the capabilities and know-how that we offer today to our business partners in order to widen wind energy’s footprint across new territories,’ the company offers.

“Our stories are a testament to the fact that there are no obstacles impossible to overcome when you have a solid partner with the right capabilities, accompanied by an industry-leading product- and service portfolio.”

INDUSTRY FOCUS: WIND

ENVENTUS EVOLUTION Introduced in 2019, Vestas’s EnVentus platform represents the next generation in the evolution of wind turbines. The technology combines to result in a vastly higher level of robustness and performance, to create an even more finely matched combination of turbines and harness available wind energy in any specific location.

“EnVentus based variants are designed with global applicability in mind,” Vestas clarifies, and this potential has been eagerly seized by major players in wholly disparate territories. Destined for Australia, the 157MW order from Neoen, the leading French independent producer of renewable energy, in May this year, marked Vestas’ first EnVentus order for Asia Pacific and Australia, and the inaugural combination of these two leading companies.

The project will feature 28 of Vestas’ V162-5.6 MW turbines from the EnVentus platform. From the base of the tower to the highest tip of the blade, the wind turbines will reach

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// WE REMAIN FOCUSED ON EXECUTING OUR PRIORITIES FOR THE YEAR, WHICH ENABLE US TO DELIVER ON OUR COMMITMENTS, DRIVE THE ENERGY TRANSITION, AND STRENGTHEN OUR MARKET LEADERSHIP // 230m to fully capture the site’s high wind shear.

“Vestas is proud that through the Kaban Green Power Hub, Neoen and Vestas’ global partnership has been extended to Australia,” commented Purvin Patel, President of Vestas Asia Pacific. “We are pleased that Neoen has chosen our leading technology, market experience and broad service solutions to help them achieve the best return on investment for their project.

“The energy generated by Kaban Green Power Hub will make a critical contribution to the northern fringe of Australia’s electricity network.

Sustainable projects like this continue to demonstrate the reliability of wind generation, along with its ability to be deployed in remote regions of our

country,” added Peter Cowling, Head of Vestas Australia and New Zealand.

Some 14,000km away, in the following month the EnVentus expertise was also sought by the 102MW Närpiö Norrskogen project, being developed by EPV Energy Ltd in western Finland. Vestas will supply, install and commission 17 V162-6.0MW turbines at the project, bringing Finland’s orders alone of EnVentus to approximately 1.3GW. “We’re privileged to continue partnering with EPV Energy on the Närpiö Norrskogen project, extending our collaboration with EPV as they develop another project with our latest technology,” enthused Juan Furones, Vice President of Sales North & West, Vestas Northern and Central Europe.

VESTAS

RECORD ORDER LEVELS Poland has also proven to be an important territory for Vestas, and the scene of its most recent triumph in scooping orders across a trio of wind projects totalling 70MW in capacity from Eurowind Energy A/S in Poland. The Zniny Damaslawek, Pniewy and Miescisko sites are all located in the Wielkopolskie Voivodeship in central Poland, and this order further bolsters Vestas’s unmatched record of nearly 3.8GW in contracts won in Poland.

“Adding to our already outstanding collaboration with Eurowind Energy, these three orders in Poland are an excellent endorsement of the range of turbine solutions we can provide customers,” resumed Richard Baylis, VP Sales East and Business Development at Vestas Northern & Central Europe.

“Vestas’s V100-2.0 MW turbine is a good fit with the projects some of the leading developers are installing in Poland, and we’re delighted to be selected to deliver turbines for the Zniny Damaslawek, Pniewy, and Miescisko projects in 2022.”

“Poland is one of our main markets and will continue to be so in the foreseeable future,” furthered Jens Rasmussen, CEO of Eurowind Energy.

“We have a sizeable development pipeline in Poland and we look forward to developing, constructing and operating those wind and solar farms in the years to come.”

// OUR EXCEPTIONAL PERFORMANCE CONTINUES TO BE THE DRIVING FORCE BEHIND THE RAPID GROWTH OF RENEWABLE ENERGY AVAILABILITY AROUND THE WORLD //

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All of this seemingly unstoppable activity has resulted in a record-high combined order backlog for Vestas, producing in the second quarter of 2021 revenue of EUR 3,536m. The quarterly intake of firm and unconditional wind turbine orders amounted to a colossal 5,290MW, and the value of the wind turbine order backlog totalled EUR 21.2 billion as at the end of June.

In addition to the wind turbine order backlog, Vestas also held service agreements with expected contractual future revenue of EUR 26.9 billion. All of this combined to see the value of the backlog of wind turbine orders and service agreements stand at EUR 48.1 billion, representing an increase of EUR 13 billion compared on the comparable period of the year prior.

Group President & CEO Henrik Andersen led the celebrations. “In the second quarter of 2021, Vestas underlined our market-leading position, achieving revenue of EUR 3.5 billion and

an EBIT margin of 2.9%. This increase was primarily driven by underlying improved operations and execution, but hampered by the continued cost inflation impacting global industrials.

“In this environment, our service business and wind turbine order intake grew 23% and 28% respectively yearover-year, which resulted in an all-time high order backlog of more than EUR 48 billion,” he continued. “To reflect the challenges from cost inflation and the global environment we operate in, we have revised our guidance for 2021 and we remain focused on executing our priorities for the year, which enable us to deliver on our commitments, drive the energy transition, and strengthen our market leadership.”

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