Prohoc Scope #4 (1/2016)

Prohoc Stakeholder Magazine 4TH Issue Summer 2016 www.prohoc.fi

On the cover:

A STEP UP FOR PETSMO PRODUCTS’ MANUALS DOCUMENTATION ENGINEERING — 4

Circular economy:

FROM WASTE TO ENERGY LEAVING A GREENER HERITAGE — 8

LNG — THE FUEL OF TOMORROW? PROHOC'S VIEWS ON THE HOT TOPIC — 14

Contents — #4 4

Case: Petsmo Products Joint effort for better documentation by Prohoc Information Services and Petsmo Products

7

News Prohoc 20-years kickoff and thesis work

8

Circular economy Making the world a better place and finding business opportunities

11

JAKAMO Corner Improving the white collar productivity

12

Healthy company Prohocs findings and efforts in employee well-being

14

LNG A step towards cleaner energy

18

EPCM value proposition Different ways to organize projects and Prohoc’s proposition

21

Greetings from site: Malta The island of many tastes

22

Wasa Royals Stepping up to play with the “Big Boys”.

Prohoc Scope is a stakeholder magazine giving insight to the daily business and development of Prohoc Oy and its personnel. PUBLISHER: Prohoc Oy EDITOR-IN-CHIEF: Matti Manner ART DIRECTOR: Jonne-Pekka Stenroos/Staart COVER PHOTO BY: Mikko Lehtimäki PRINTED BY: Fram, Vaasa, Finland. Papers and inks used are eco-friendly and produced responsibly.

2

Editorial from the Chief

TOWARDS MORE CLEAN AND NOBLE CAUSES We are living in an era that makes or breaks the way we can live our lives in this beautiful place we’ve been given. The magnitude of change is more than we might be able to see as we look at it from a micro-perspective view day to day. Taking a broader and holistic view might give us surprisingly different and more alarming opinion.

Climate and utilization of resources are staying in the headlines, but we are happy to notice that the tone of the message has recently, after the Paris agreement, changed towards a more mutual understanding that something needs to be done. Nations and industries seem to have more realistic view and approach to these difficult questions. Such behavior can even be seen from the capital market, where venture capitalists move more funding towards businesses with sustainable and noble cause. New generations are more aware and more alert towards climate change in all its forms and that is a great sign.

Us Finns have been somewhat more proactive in understanding the importance of restricting emissions and to apply sustainable use of resources. This we now can benefit in the form of cleantech knowledge. At Prohoc we are very proud to work with customers that are really in the forefront of this development and we strive to give our support on these initiatives the best we can. Introduction of cleaner fuels, such as natural and biogas, bioproduct ecosystems and different new technologies to reduce the footprint. These all are the kind of causes were we at Prohoc can fully relate to.

This Scope introduces our view on these topics, among other interesting stories. We also give a sneak peak into our waste related development initiative. Now, enjoy your reading and enjoy your well-deserved summer holiday, whenever the time is. And let’s all do our small share for good and noble causes by our daily decisions!

Matti Manner

CEO

Sport enthusiast, yachtsman and all-around business engineer Matti is the chief executive officer of Prohoc. After traveling around the globe trying to find world class suppliers he is now navigating Prohoc to become one.

TWITTER: @MattiManner

3

Case: Petsmo Products

TAKING MANUALS to the NEXT LEVEL Words and graphics define the perception of a company, explain how to use its products, answer customer questions and provide critical information. Today, technical content plays a role more important than ever in how companies, products and services are received and consumed.

Matias Österberg ÖSTERBERG GROUP

“It was a pleasure to start assisting this great local company with such a long history”, Prohoc’s Iiro Wesslin says.

Prohoc and Petsmo Products Oy (part of the Österberg group) started discussing the situation of Titan manuals. It was soon discovered that existing paperwork didn’t always match the great quality of the machines.

“We agreed with Matias that manuals are an extremely important part of the customer-experience for Petsmo’s customers”, Wesslin says. Prohoc started the work to bring the manuals to next level.

Prohoc concluded a workshop with Österberg’s Petsmo Products to define the key issues that should be addressed in the manuals. The renewed manuals were made not only to fulfill the legislation and standards, but to exceed the customer expectations and even to speed-up Petsmo’s spare part business.

The ongoing work consists of updating the whole manual portfolio for Petsmo. “We got a great feeling of Prohoc’s Documentation Services from the get-go and the references were impressive.

The quality of work and the price point are correct, we can definitely recommend Prohoc as a service provider”, Matias Österberg says. Learn more about Österberg Group on the next page ≥

4

THE SCOPE OF WORK Prohoc was selected to produce new manuals to all Titan series machinery, more than 10 different devices. The work included design, consulting, technical writing, technical illustrations, spare parts documentation and printing/publishing.

Iiro Wesslin PROHOC

Mikko Lehtimäki

5

From previous page

THE GROUP

Mikko Lehtimäki

Österberg Group was established by Mr. Knut Österberg in 1948. Österberg Group is a family-owned business with several different business lines, dating back over 60 years in time. Today the company serves multiple different industries globally.

PETSMO PRODUCTS A diversified manufacturer of special machinery. The main part of Petsmo Products’ own production is developing and manufacturing machines and equipment for slaughterhouses, feed kitchens, biogas and compost plants, rendering plants and the pet food industry. The offering consists of tanks with automatic weighing and feeding as well as different kinds of breakers, grinders, conveyers, mixers, cookers, homogenizers, pumps and transporters — the Titan product family.

WEL-MACH A metal company located in Vaasa specializing in subcontracting for multinational companies. Wel-Mach’s welding department is specialized in processing over 3 mm thick iron and steel. Wel-Mach processes materials such as regular steel, stainless steel and other special steels. “Our machining department is specialized in multiphase manufacturing of technically demanding mechanical parts from materials such as cast iron, aluminium alloys and other special steels. We carefully finalize the product according to customer requirements by for example steel blasting, glass-ball blasting and wet painting”, explains Matias Österberg from Wel-Mach.

MANOR A versatile medium-heavy engineering workshop has been manufacturing piping products and steel structures for international companies for over 20 years.

Manor supplies various piping assemblies according to

6

customer specifications. Delivery may include workshop fabrication, surface treatment and packaging / packaging into containers.

KGN TOOL A company specialized in manufacturing various service tools, toolsets, special machined components and assembling part-assemblies for e.g. Ship and Power Plant building industries, Wind industry, other Power industries and other special industries with over 40 years of experience. ÖSTERBERG LTD. A diversified expert in the plastic industry. Over 60 years of experience and expertise with the latest production methods and technology. Österberg Ltd. specializes in the injection molding of technically advanced plastic components from different thermoplastics and thermosets. “Multi-phased product development and production of technically advanced plastic components requires up-to-date knowledge of the advancements within the industry as well as constant development of the company's expertise, manufacturing processes and the production machinery”, Matias Österberg says.

REFERENCES ABB, Wärtsilä, Alfa Laval, Logset, Moventas, Mirka, Atria, Saarioinen, HK Scan, Snellman, Outotec, Stormossen and many more.

NEWS MASTER’S THESIS WORK AT PROHOC

PROHOC 20 YEARS - ANNIVERSARY KICK-OFF

Prohoc achieves a respectable age of 20 years this year.

“We decided to start the celebration with some of our long-term customers and own employees traditionally by going to a local hockey match Vaasan Sport – Oulun Kärpät.” Iiro Wesslin says.

The event started out in the afternoon at Bock’s Brewery / Restaurant, where all participants got a “Prohoc-VIP passes” to their necks. Opening words welcomed the crowd to the event by Prohoc management, led by CEO Matti Manner. After that, participants had the privilege to hear about Pukinkulma’s history and what is going on nowadays by Jura Mikkonen, especially interesting was to get a glimpse of the brewing operations.

After the tour a delicious dinner was served, which was well flushed down with Prohoc 20y. Anniversary beer!

After dinner everyone was hurried outside where local bus company’s “hockey-vehicle” provided us a safe ride to the arena.

The match was a challenging setup for local team Sport, the opponent Oulun Kärpät was the frontrunner of the whole THE MAIN EVENT FOR series. Kärpät had rising stars like OUR CELEBRATION Jesse Puljujärvi (Leading player of TAKES PLACE DURING the fresh U20 World Championship team) in their lineup among others. Tight game ended up going to overtime and was won by Vaasan Sport (2-1)! Charles Bertrand was the hero of the night for team Vaasa by scoring and stopping the game clock at 60:14.

After-game took place at Prohoc’s premises, in the agenda were comments from Kärppä-Coach Mikko Manner and some karaoke.

Q3 of 2016

Prohoc is keen to carry its own weight in promoting the entry of talented students into the professional life within the Finnish industry. In this respect, Prohoc funded a Master’s Thesis work for a Tampere University of Technology student Roope Mannonen.

Vaasa Region is known as the Energy Cluster of Finland, and thus it was only natural that the thesis would cover a topic related to energy. And since environmental issues are in the forefront, not least thanks to the latest United Nations Climate Change Conference in Paris in 2015, we decided to combine these two issues. It was agreed together with Roope, that a research project focusing on the development of a medium-scale waste-to-energy power plant would serve both our interests; Prohoc could use the results in the decision-making process of whether to establish a new business area and Roope would have a topic, where both theoretical and practical analysis is required, thus easily fulfilling the University’s requirements for a Thesis work.

It took only a few brainstorming sessions at the beginning of the Thesis work to define the scope more clearly as “Concept Design for a Modular Waste-to-Energy Power Plant”. This would answer the three main questions that we had for the business case. Firstly, can municipal solid waste be burned in a medium-scale (around 10 MW) power plant. Secondly, is it possible to design a modular easily and fast deliverable power plant. And thirdly, could such a power plant be delivered profitably. Work on the subject started in November 2015 and after six short months the final version emerged from the print house.

The results: Roope received a grade of ‘Excellent’ for the Thesis and also his M.Sc. in Engineering Diploma in May 2016, and Prohoc got a valid proof of concept for the W2E development project.

'Concept Design for a Modular Waste-to-Energy Power Plant'

Roope Mannonen OVEN FRESH ENGINEER

EXCELLENT

7

Sustainable development through

CIRCULAR ECONOMY The Western world is drowning on waste. New and innovative solutions are sought after to solve the paradox between economic growth and diminishing natural resources. Reusing waste as raw material for new product or transforming it to energy offers interesting business opportunities.

E

uropean Union has been promoting sustainable development for some three decades now. The so called Brundtland Commission laid down the principles for sustainability from an environmental perspective already in 1987 with the statement “meeting the needs of the present without compromising the ability of future generations to meet their own needs”.

From EU’s perspective, reduction and reuse of waste have been the key issues. Some of the member countries have had progressive legislation in place, but as in most issues, the community has been divided between the developed and the developing countries.

In this respect, some countries have required more legislative “encouragement” than others.

The latest waste-related initiative has been the EU’s policy paper ‘Towards a circular economy: a zero waste programme for Europe’. This paper sets the target to lift Europe into the forefront of the ‘waste game’.

THE CHALLENGE Valuable materials are leaking from our economies. In a world where demand and competition for finite and sometimes scarce resources will continue to increase, and pressure on resources is causing greater environmental pressure, Europe can benefit economically and environmentally from making a better use of those resources. Since the industrial revolution, our economies Fig. 1

65% of municipal waste and 75% of packaging waste, as well as to reduce landfill to maximum of 10% of municipal waste by 2030.

Circular economy systems keep the added value in products for as long as possible and eliminates waste. They keep resources within the economy when a product has reached the end of its life, so that they can be productively used again and again and hence create further value. Transition to a more circular economy requires changes throughout value chains, from product design to new business and market models, from new ways of turning waste into a resource to new modes of consumer behaviour. This implies full systemic change, and innovation not only in technologies, but also in organisation, society, financing methods and policies. Even in a highly circular economy there will remain some elements of linearity as virgin resources are required and residual waste is disposed of.

THE TOOLBOX Circular economy approaches ‘design out’ waste and typically involves innovation throughout the value chain, rather than relying solely on solutions at the end of a product life cycle. For example, they may include: • LIGHT-WEIGHTING —Reducing the quantity of materials

required to deliver a particular service • DURABILITY — Lengthening products’ lifecycle

USE

D

• EFFICIENCY — Reducing the use of energy and materials in

• SUBSTITUTION — Reducing the use of materials that

are hazardous or difficult to recycle in products and production processes

EN

SI

ON

DIS PO SA L

N TIO IBU TR IS

production

CL E

AN

RE

UF AC

DIS

TU

TRIB

IFE

EX

• RECYCLATES — Creating markets for secondary raw

T

materials RE

RE

CY

M

TL

UTION

CT U

RE

PRODUC

RE

RAW MATERIALS

M

U AN

FA

have developed a ‘take-make-consume and dispose’ pattern of growth — a linear model based on the assumption that resources are abundant, available, easy to source and cheap to dispose. It is more increasingly understood that this pattern threatens the competitiveness of Europe.

Moving towards a more circular economy (fig. 1) is essential to deliver the resource efficiency agenda established under the Europe 2020 Strategy for smart, sustainable and inclusive growth. Higher and sustained improvements of resource efficiency performance are within reach and can bring major economic benefits. There is already legislative framework being built to meet the strategy requirements. This includes e.g. a general EU target for recycling

• ECODESIGN — Designing products that are easier to

maintain, repair, upgrade, remanufacture or recycle • Incentivising and supporting waste reduction and highquality separation by consumers; • Incentivising separation, collection systems that minimise the costs of recycling, and reuse; • Facilitating the clustering of activities to prevent byproducts from becoming wastes (industrial symbiosis); • Encouraging wider and better consumer choice through renting, lending or sharing services as an alternative to owning products, while safeguarding consumer interests Continues ≥

9

Waste-to-Energy THE PROHOC WAY Finland has always been a very technologically oriented country. Different regions within the country have embraced different technologies, i.e. the Oulu Region is known for mobile phone development, the Jyväskylä Region for paper machines and the Vaasa Region for the Energy Cluster. Energy efficiency and new energy sources are key elements of circular economy and thus Vaasa is in the forefront of this development as well.

As a key service supplier to the Energy Cluster, Prohoc is also looking to contribute to the circular economy advancement. We have, for some time now, been contemplating a model of easily (and fast) delivered modular medium size CHP plant capable of producing electricity, thermal energy (heat) and clean water with a high level of automation and thus with minimal manpower.

This 10MW power plant would burn around 30,000 tons of MSW per annum, i.e. 4 tons every hour, and could solve both the waste management challenges and energy needs of small cities or counties in developing countries. As in any CHP plant, the electricity-to-heat ratio is around 1:3, which in warmer climates generates excess heat that could be used to promote local SMEs which can utilize it. This could be a real win-winwin situation adding local jobs on top of the waste management solution and fulfilling local energy needs.

The work with the W2E power plant design is on-going. Stay tuned for more news in later issues of the Scope Magazine.

Tapio Gyllin SALES DIRECTOR PROJECT SERVICES

10

From previous page An important starting-point is the design of production processes, products and services. Products can be redesigned to be used longer, repaired, upgraded, remanufactured or eventually recycled, instead of being thrown away. Production processes can be based more on the reusability of products and raw materials, and the restorative capacity of natural resources, while innovative business models can create a new relationship between companies and consumers.

For the common consumer, this can be simplified to the four points of waste management hierarchy; prevent, recycle, use for energy and safe disposal. Although Finland has for decades been a European front-runner in the collection of municipal solid waste (MSW), we have not put enough emphasis on waste prevention and recycling. Finland has chosen to burn most of the MSW for energy in large-scale centralized Combined Heat and Power (CHP) plants. It can, of course, be argued that our Northern location allows for the efficient use of the heat-component of the CHP plant and therefore burning the waste is, in fact, the environmentally friendliest solution.

"A real win-win-win situation adding local jobs on top of the waste management solution and fulfilling local energy needs."

Timo Rossi HEAD OF SERVICE DESIGN, PARTNER JAKAMO LIMITED

IMPROVING THE WHITE-COLLAR PRODUCTIVITY OF A VALUE CHAIN Traditionally most of the improvement investments of value chains in manufacturing industry have been done at the factory floor.

Manufacturing processes have been highly automated and methods improved continuously. At the same time, office processes have often been almost forgotten.

Y

our supplier might have the best available robotised technology to produce your components efficiently.

Meanwhile you are still struggling with trying to manage claims with them by email, typing the information that supplier has sent to you manually in your internal systems or desperately trying to find the supplier’s material certificates that your customer is asking for.

Today, a lot of time is wasted in business relations, for instance, in searching information, creating reports, waiting someone to send you some critical information, typing the same information multiple times manually to different systems of different companies. There is a huge potential to improve the white-collar productivity of a value chain by reducing manual work and ensuring that the needed information is easily available whenever and wherever.

We in Jakamo want so solve these tricky problems and help manufacturing companies in all over the world to improve the white-collar productivity of their value chains. Jakamo platform provides one common place to share and manage information and to collaborate between companies. Jakamo enables automation of information processing, fast information searching, instant collaboration, and real-time reporting in the whole value chain.

When people do not need to spend time to manual routine (often double or triple) work they can do something that really creates customer value, such as collaboration, problem solving, learning from each other or developing new products and services with customers and suppliers. And by the way, this type of work is usually much more pleasant for employees than manual routine work.

11

Healthy individuals make a

HEALTHY COMPANY I

love Mondays, said one of our engineers to me last week. What a great attitude I thought! How come, I asked, and he answered that Monday is like a new beginning every seven days. What a great way to motivate yourself in every sector of your life. Sustainability is a virtue but one should not forget being sympathetic to oneself as you are the most important person in your life. Think about it: if you have 52 new starts during one year, it’s not that dangerous if a couple of them fail”, states Alma Kangas, HR manager of Prohoc.

“Healthy Prohocians are the single most important success factor for the whole company. If you are physically and mentally well, it is easier to work under pressure, control your stress level and not forget to rest.

Generally, managing these issues is called SELF-MANAGEMENT and we want to help our employees embrace it”, Kangas continues.

FEEDBACK For several years now, Prohoc has been sending a Well-being Survey to all remote employees multiple times a year to collect systematic feedback. It gives continuous feedback about the employees’ capacity and stress levels, not forgetting possible challenges concerning the working environment, as most of them are working abroad.

Prohoc management realizes that there is no point

12

"Man is an entity.

Well-being is always a matter of body and soul; the physical and the psychological, not one or the other."

asking feedback without implementing actions to make things better.

Based on the data, Prohoc found out that most people enjoy their work but some support is needed.

“How to find the right balance with work and leisure?

We wanted to grasp this issue and solve it”, Kangas says.

“We found a great partner called ActPRO to help us with the execution.”

ACTIONS Prohoc has carried out several actions in terms of Prohoc Wellbeing Program: 1) ACTPRO WELLNESS 360° INDEX SURVEY was made to find personal results for every Prohocian. Based on the findings, ActPRO communicates individual recommendations confidentially to all employees in person.

Response rate to this survey was 78,6% (very good).

Everyone received a personal summary pointing out the strengths and development areas.

Total Wellbeing Index of Prohoc was 80,2%, which is already a bit higher than average results. The main motivators for maintaining and developing wellbeing were:

• Feeling good • Staying healthy • Having the ability to generally enjoy life

Mikko Lehtimäki

Alma Kangas HR MANAGER

2) ACTPRO ELEARNING SITE IS AVAILABLE. E-Learning modules can be explored based on personal recommendations from the 360 Survey. As Prohocians are working all around the world, it was natural to choose a digital environment for skills development. E-learning Exercises include 30–90 minute lessons for the areas on Mind and Self-Management, Recovery, Work, Exercise and Nutrition.

3) MAPPING THE KNOWHOW; Prohoc pays close attention on developing our employees and we want to individually evaluate the experience and skills in a more detailed way. This enables making more specific training and development plans.

Some of us can’t sleep enough and some of us won’t, but we all should.

The lack of sleep has many effects on our health.

TIPS FOR BETTER SLEEP Stop using your phone, computer and other electronic devices 2 hours before bedtime. The blue light of the screens affects your brain and can make falling asleep harder.

Avoid drinking coffee, tea and other caffeinated drinks at least 5 hours before bedtime.

Avoid eating too heavily before bedtime. The ideal evening snack is light and contains slow carbohydrates, proteins and is low fat.

Do something nice and relaxing in the evening.

Read a book, listen to relaxing music, practice yoga – discover what’s best for you!

4) HEIAHEIA ACCOUNT OF TEAM PROHOC HAS BEEN

It is a social network for Prohocians where everyone can track their different wellbeing actions and trainings. Everyone can also support team members of Prohoc and this way we get a bit more sense of community.

5) PROHOC SUPPORTS EMPLOYEES ALSO FINANCIALLY. For example “ProExperience” sponsorship is one way to support groups (min. 3 people) that want to try new variety of sport or other such activity.

Take a pen and a paper and write down all the thoughts and worries that might keep you awake. Writing helps you clear your mind before going to bed.

6) PROACTIVE TOUCH WITH OUR OCCUPATIONAL HEALTH-

If you’re suffering from a more serious sleeplessness, contact your doctor. Sleeping pills are not the only solution: according to new studies, the most effective way to beat insomnia is cognitive behavioral treatment, a so called sleep therapy.

LAUNCHED.

Just to mention few things, special attention for working ergonomics and physical health check-ups before new projects are key factors to ensure healthy manners and habits at work avoiding accidents.

CARE.

For short term sleeplessness you can try melatonin. It’s a natural sleep aid and available without prescription.

13

DISTRIBUTION STATION

MAIN GAS LINE

PIPELINE ON THE SEA BED

COMPRESSOR STATION

Step towards Cleaner Energy

The death of the combustion engine has been forecasted for decades. Still, people and cargo move across the globe mostly by means of combustion engine driven vehicles. Advances in technology and new fuels have prolonged their lifespan.

LOW-PRESSURE GAS PIPELINE

UNDERGROUND NATURAL GAS STORAGE

14

L

NG is natural gas, predominantly methane (CH4), There are currently two terminals being built in Finwhich is a clear, colorless and non-toxic liquid. It land, one in Tornio and the other in Pori, both on the forms when natural gas is cooled to -162°C. The cooling Western coast of the country. Their combined volume process shrinks the volume of the gas 600 times, making is 80,000 m3, which will be mostly utilized by local enit easier and safer to store and ship. In its liquid state, ergy-intensive industries. Planning of a third terminal, LNG will not ignite. to be located on-shore the Gulf of Finland in Hamina, Natural gas could be considered the most environ- has just begun. mentally friendly fossil fuel, because it has the lowest CO2 emissions per unit of produced energy and because LNG IN POWER PLANTS it is suitable for use in highly efficient combined cycle Booming oil prices have led HFO and LFO driven power power stations. For an equivalent amount of heat, burn- plants to search for alternative fuel options. At the same ing natural gas produces about 30 per cent less carbon time, advances in technology, especially in the fields dioxide than burning petroleum and about 45 per cent of hydraulic fracturing and horizontal drilling, have less than burning coal. led to a dramatic increase in the estimated recoverable The first commercial LNG liquefacshale gas resources. The United States tion plant was opened in West Virgin- LNG IS IN THE is leading this gas revolution. Besides ia, USA in 1917. But it wasn´t until the the obvious environmental aspects of EARLY STAGES 1960s when Algeria begun exporting burning a cleaner fossil fuel, the stable LNG to the UK, that the commercial OF BECOMING price of LNG makes the planning of operation on LNG really begun. investments much easier than with A MAINSTREAM other fossil fuels.

FUEL FOR GLOBAL LNG NETWORK The uncertainty of world economy As with most fuels, production loca- TRANSPORTATION in the past few years has significantly tions seldom coincide with demand. lowered oil prices, which in turn has NEEDS. Therefore, LNG faces similar kinds of slowed down LNG investments. Several transportation and storage challenges projects are “on hold”, but fortunately as other fuel forms. LNG can be transported in small for LNG producers not cancelled. As the world energy devolumes and short routes in insulated piping networks mand continues to increase, so will the LNG investments. or in tanker trucks. World trade, however, requires a huge fleet of specially designed and constructed LNG LNG IN SHIPS cargo vessels. Since 1959, when the first LNG carrier The Baltic Sea is one of the regions, where stricter con“Methane Pioneer” left the shipyard in Louisiana, USA, trols have been established to minimize airborne emisclose to 300 vessels have been built, of which over 250 sions (SOx, NOx, ODS, VOC) from ships as of 1 January are still in service.

2015. These requirements can be met either by installing There are around 150 LNG terminals in operation state-of-the-art air pollution control systems or by using serving as a local fuel buffer with another 25 terminals environmentally friendlier fuels. As these regulations are under construction, 35 terminals being planned and 45 likely to become only stricter over time making way for under study. Current global capacity is over 50 million increased use of LNG. The container shipping company, m3, of which Japan has 28% and Europe 20%. Fastest Maersk Group has already decided to introduce LNG fuel growth is taking place in the USA, which currently has driven container ships. DEME Group has contracted 18% of the world terminal capacity.

Wärtsilä to power its new generation ‘Antigoon’ class dredger with dual fuel (DF) engines. Continues ≥

15

From previous page The Finnish passenger traffic company Viking Line is an environmental pioneer with its LNG vessel. M/S Viking Grace represents a new generation of ferries in which modern design and LNG as a fuel alternative.

Before combustion in the vessel’s engines the LNG is heated and resumes to gaseous form. LNG contains no sulphur. Nitrogen emissions and particulates are reduced by 85% and greenhouse gases by 15% lower than with the fuel used at the moment. Even waste heat from engines is used during port stays and LNG-based recycled cool air is used for ventilation.

LNG IN TRANSPORTATION LNG is in the early stages of becoming a mainstream fuel for transportation needs. It is being evaluated and tested for over-the-road trucking, off-road, marine, and train applications. There are known problems with the fuel tanks and delivery of gas to the engine, but despite these concerns the move to LNG as a transportation fuel has begun. China has been a leader in the use of LNG vehicles with over 100,000 LNG powered vehicles on the road at the end of 2015.

Many countries have adopted a CO2 emission based road or fuel tax. Although LNG contains less energy per mass than traditional road traffic fuels, it makes up the difference and more in greenhouse gas emissions and is both an environmentally friendly and economical choice.

PROHOC IN LNG BUSINESS As a flexible mid-sized company with vast experience in diverse business segments, Prohoc is constantly looking

for new opportunities to expand its customer base, gain valuable know-how and offer best-in-class services to both project partners and end-customers.

In 2014 and again in 2015 a challenge presented itself in the cold, but easily flowing form of Liquefied Natural Gas. The partially overlapping erection of two mega-size LNG terminals PROHOC HAS THE takes place in Pori and Tornio on the PERSONNEL AND Western Coast of Finland.

THE KNOW-HOW Pori terminal, an EPCM contract TO STAFF THE NEW between Skangass and NesteJacobs, LNG TERMINAL will be the smaller one with a volSITE ORGANIZATION ume of 30,000 m3 (or 15,000 metric tons). Having outer dimensions of ALTOGETHER. 35m in height and 42m in diameter, swallows the loads of two standard size Baltic Sea LNG-vessels. Tornio terminal, an EPC contract between Manga LNG and Wärtsilä, measures 50.000 m3. A good indication of the size of the terminal is the fact that it needed the largest crane in Finland, operated by Havator, to lift the 800-ton roof on top of the tank.

In the past two years Prohoc has offered a multitude of services on both terminal sites ranging from civil engineering supervision to site logistics coordination and from mechanical and piping installation supervision to site HSE management. Now that the investment decision on the third LNG terminal to be built in Hamina has been made, Prohoc is well-positioned to offer a wide range of services also for that project. In fact, Prohoc has the personnel and the know-how to staff the new LNG terminal site organization altogether.

NATURAL GAS PRODUCTION PER YEAR +100 000 000 000 m3 +10 000 000 000 m3 +1 000 000 000 m3 +100 000 000 m3 +1 000 000 m3 No production

16

Facts & Figures

WORLDWIDE TRANSPORTATION

LNG STORAGE

TONNES

TRADE VOLUME IN 2015 WAS

TONNES

80 000 260 000 000

LNG TRADE BEGUN IN 1964 WITH A VOLUME OF

Annual growth rate

20

60

20

+5%

BILLION CM 70

Africa

30

20

Asia-Pacific Australasia

20

18

GLOBAL SHALE-GAS PRODUCTION

Eastern Europe/ FSU

17

40

19

50

20

excluding North America

20

16

20 15

Middle East

20

Latin America

20

13

Western Europe

20

12 20

20

11

14

10

0

EXPORTING

IMPORTING

19 30 COUNTRIES

COUNTRIES

BIGGEST PRODUCERS

16 % USA

15 %

RUSSIA

4%

IRAN

3%

CANADA

3%

QATAR

GAS TREATMENT STATION

17

VALUE PROPOSITION DOCUMENTATION, COMMUNICATION AND REPORTING

CONCEPT STUDY 1 Requirement specification 2 Functional specification 3 Stakeholder identification 4 Permit planning 5 Technology review

EPCM

FEASIBILITY STUDY

PROJECT PLANNING

DESIGN & ENGINEERING

PROCUREMENT & LOGISTICS

1 Market analysis

1 Project objectives

1 Engineering management

1 Scheduling

2 Scope review

2 Organization

2 Detailed specification

2 Purchasing planning

3 Risk review

3 Schedule

3 Detailed engineering

3 Supplier selection

4 Preplanning

4 Budget

4 Implementation plans

4 Contract management

5 Resourcing

5 Work breakdown

5 Change management

5 Manufacturing QA/QC

6 Partnering

6 Site audit

6 Logistics management

7 Cost estimation

7 Basic design

6 Stakeholder communication

8 Cash flow plan

8 RFQs

for EPCM 9 Cost-benefit analysis

18

9 T/Cs

Large-scale delivery projects are becoming increasingly complex. Technologies are evolving and it is becoming virtually impossible for a single company to possess and maintain all the necessary skills and know-how. Therefore, project deliveries are split into small fractions delivered by multiple companies, which easily results in a broken value chain.

I&C MANAGEMENT

COMMISSIONING

HANDOVER

OPERATIONS

1 Site management

1 FAT & SAT

1 Verifying documentation

1 Operational support

2 Mobilization

2 Precommissioning

2 Punch list management

2 Maintenance services

3 Site planning

3 Commissioning

3 Operator training

3 Changes & upgrades

4 Contractor management

4 Punch list management

4 Demobilization

4 Decommissioning

5 Staff management 6 I&C supervision 7 HSSEQ 8 Change management

CONTRACTING MODELS When buying a service or a product (or a product that includes services), there are several different types of contracting models to choose from. Many of these come with perplexing three or four letter acronyms like FEED, LSTK or EPC. And to complicate things further, these acronyms have had slightly different meaning in different countries, which has raised concerns within export-oriented companies.

Fortunately, such international organizations as FIDIC, ICC and Orgalime have stepped up and created a common vocabulary for the industry. Now an EPC contract content and terms are exactly the same, even if the sale is made in Finland and the delivery takes place in Indonesia, or vice versa. And the same holds true with all other contract types, such as FEED (Front-End Engineering and Design), EPS (Engineering, Procurement and Supervision) and EPCM (Engineering, Procurement, and Construction Management).

Although the lump sum EPC option is usually the most desired procurement setup for Owners and funders, in response to market

conditions EPC contractors are increasingly offering some alternatives. In recent years there has been an increase in cost reimbursable contracts (usually with a target price pain/gain share mechanism built in). More recently, there has been a significant increase in the EPCM contract procurement route for complex infrastructure and major construction works.

DEFINING PROJECT SCOPE For major industrial projects it is not unusual to split the project delivery process into two phases; in the first, engineers set the design parameters which define the scope of work, and break the work down into packages for budgeting and planning purposes, to a sufficient level to allow the Owner to search the market to tender the work. This is often referred to as the Front-End Engineering and Design (FEED) stage, which generates what is known as the basic or conceptual engineering.

The FEED is usually executed predominately on Continues ≼

19

From previous page a schedule of rates basis, although certain definable components can be lump-summed. The FEED stage usually includes, but is not limited to, basic engineering and design, project schedule and cost estimates for project control and sometimes procurement of certain long-lead-time items. The FEED stage results to basic engineering packages, which ideally are sufficiently progressed to enable competitive bids to be obtained on a lump sum basis.

ADDED VALUE THROUGH EPCM One of the major benefits of the EPCM model is the freedom it allows the contract holder or the Owner in deciding the supplier of each work package. Different selection criteria may be applied in different package, resulting in exactly the desired feature mix, e.g. quality, delivery time, price, guarantee or durability. In a traditional EPC contract, either the main contractor or their chosen sub-contractor delivers a certain product or service. Decisions are typically based on the existence of

a frame agreement or simply on price, neither of which ensures the best choice for the end-customer.

The Owner can also easily choose to withhold some procurement items for himself. The Owner might have superior know-how in e.g. production-related machinery purchases in comparison to the EPCM contractor. Including such separate procurement item into the project would be more straight-forward in EPCM, where the contractor is only responsible for the construction and installation management and not the actual I&C work itself.

“In the end, it all boils down to money” describes aptly the third and for many the most significant benefit of EPCM over EPC. EPC turn-key solutions tend to include significant levels of contingent pricing introduced to manage overall project delivery risk, especially in regard to items and services that are not well-known to the main contractor. In EPCM there is more focus on competitive bidding which, at least in multi-supplier environments, manages the cost-side better.

ONE-STOP-SHOPPING with PROHOC

P

rohoc has for 20 years been the trusted partner of several Finnish major project supplier companies in site operations. We are drawing from this experience and expanding our offering to include project management and documentation services. Instead of just resourcing the customer’s project organization, we are able to take full responsibility of the project delivery based on mutually agreed schedule, quality and price targets.

As our strategy excludes engineering and design services, we have decided to partner up with Etteplan and Finnish Consulting Group (FCG) to enable us to deliver all the project-related services from the first environmental impact assessment or concept design to the commissioning and operational support of the facility.

This consortium has already begun the cooperation and start bidding in the mining and energy sectors, and new interesting business opportunities are arising weekly.

The major customer benefit, on top of receiving bestin-class services, is that all the services can be agreed in one contract. We ensure that the service value chain remains intact and that the project meets all the requirements for safety, quality and cost-efficiency. Projects,

20

including all business-critical services, are delivered on time and in budget without any price escalations. And the project contract model decision remains in the hands of the customer. The consortium has the resources and financial stability to work based on EPS, EPC or EPCM contract, or basically any other combination of services.

Etteplan provides engineering services and technical documentation solutions to the world’s leading companies in the manufacturing industry. Their services are geared to improve the competitiveness of their customers’ products and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products.

FCG is a multi-expertise company that provides services in infrastructure, environmental and urban design, in multidisciplinary training and in developing public services. The company’s clients represent a broad range of private and public sector organisations.

Combined the three companies employ close to 3,000 people and have a turnover of some 220 M€.

Greetings from the site

MALTA

THE ISLAND of many tastes M

altese food is a lovely mixture of traditional island cuisine and influences of various nations living in the island during centuries. You can taste England in many types of Maltese pies. The Italians have made their mark strongly: all sorts of pasta dishes are very common in both home kitchens and restaurants. Having always been open to outside influences, Maltese cuisine also shows tastes of Sicily, Spain, France and Northern Africa.

Similar to many other Mediterranean countries, the food is mainly based on fresh, local ingredients and seafood. The Maltese cuisine has a strong base of vegetables, such as tomato, capers, cabbage, beans and aubergine.

Variety of fish is available around the year depending on the season. Lampuki, a type of mackerel is the fish for autumn season, tuna and swordfish are used more year-round.

One local specialty is rabbit, which is served in nearly every restaurant. Very often the food is served with crusty sourdough bread.

Try these mouth-watering local delicacies:

Pastizzi

Little savoury pastries filled with ricotta cheese or peas

Hobz biz-zejt

Bread with tomatoes, olive oil and a mix of anchovies, olives, onion and capers

Soppa tal-armla (widow’s soup)

A simple tomato-based soup with fish and vegetables

Stuffat tal-fenek

Rabbit stew, the national dish of Malta

Kapunata

A Maltese version of ratatouille, made with tomatoes, capers, aubergine and green peppers, served with fish.

Qubbajt

A delicious nougat

And remember: in Malta, food is more than food.

It is a way of life.

21

Season 2016 is the time for Wasa Royals to show what they have got. The long awaited games have finally started. This season the team finally made it to Maple League, the Finnish league of American football.

–The boys are hungry to play, says Seppo Evwaraye, head coach of Wasa Royals and executive manager of West Coast Vikings Club.

–They have trained really hard. They're extremely eager to get to the grass and show what they’ve got.

The game, the performance, that’s what’s it is all about.

That’s where it will be measured what you’ve sacrificed so much for and worked so hard for.

WINNING TEAM The team was founded in 1994, when Jari Rissanen, Anssi Viiru and Roy Jakobson established West Coast Vikings Club. The history of American football in Vaasa is even older. In 1985, Pertti Vuori founded the first team and the next year they played their first game. The name Wasa Royals was given to the varsity team in 2012.

The team’s aim is to gain professionalism. The core group has 30 to 35 players. This year, a number of players from outside Vaasa (and Finland) are fulfilling the gaps in our local group, the amount is still growing.

–Of course we dream of having as many local players as possible, but in competitive sports it’s just not realistic, says Ewvaraye.

–In a small city like Vaasa there just aren’t enough Vaahteraliiga quality players available.

The crew has trained hard and systematically, just like every other top athlete: active workout 8 times per week and maintenance workout 3 to 4 times per week.

Training is pretty much everything they have done on a daily basis.

Hard training leads to good condition. Sometimes even too good.

–In the beginning of last season we were much more ready than other teams. That led to easy victories and

22

not developing during the season, so the other teams had a chance to rise to our level. There were also some injuries that hurt the team during last season.

This season, the strongest asset is the team’s group spirit. Every single player has the same objective. Inner pressure is hard and will lead the team far.

–It’s a tough sport. Nobody will do it just for fun.

LOCAL SUCCESS STORY Wasa Royals has managed to gather great audiences with an average of 1100 and a record of 2000. Evwaraye thanks sunny weather for that, but another reason are successful game events which are arranged especially for families. With an open and welcoming atmosphere they are great happenings for anyone to come and have a good time, whether one knows anything about American football or not.

–The sport itself is obviously very close to my heart, but we’re not trying to recruit new fans just for the sport.

We’re recruiting fans for the team. Wasa Royals wants to be more than just one team of many, Evwaraye explains.

The head coach, who himself was a professional American football player in USA for 13 years, has a strong trust in the sport. He’s convinced that the popularity of American football will grow in Finland a lot during upcoming seasons.

–The growth and coverage have already been huge in recent years. This is such a versatile and challenging sport, it deserves more respect. American football takes a lot physically, mentally and tactically. My job is to bring it up both locally and nationally as much as I can.

Follow Royals' journeyt at www.royals.fi

Samppa Toivonen

It’s a tough sport.

NOBODY WILL DO IT JUST FOR FUN. Seppo Evwaraye HEAD COACH

23

PROJECT'S DONE THE RIGHT WAY PROMANAGEMENT PROCONSULTING PRORESOURCING PRODOCUMENTATION

Prohoc Oy Virtaviiva 8 F, FI-65320 Vaasa, Finland tel. +358 6 315 7700 Aleksanterinkatu 22 C, FI-33100 Tampere, Finland www.prohoc.fi FOLLOW US: @ProhocOy