Issue 200 January |
energy-oil-gas.com
Incorporating
Powering forward
HAVING RECENTLY MADE HORIZONTAL OIL AND NATURAL GAS DISCOVERIES IN LAWRENCE COUNTY, KENTUCKY, ENCORE ENERGY IS ENTERING 2022 WITH PLANS FOR GROWING BOTH PRODUCTION AND INCOME FOR INVESTORS
Energy
When considering alternative fuels, hydrogen is one of the innovations that requires investment, research and development
Carbon pricing
Support is growing for carbon pricing, but harmonizing a global system and disparate mechanisms will be a challenge
Green power: Neste signs first renewable hydropower purchase agreement with Vattenfall Cable contract: Nexans wins significant deal with Ocean Winds for Moray West windfarm
EDITOR Editors Chairman Andrew Schofield Managing Director Joe Woolsgrove Editor - Libbie Hammond libbie@schofieldpublishing.com lhammond@finelight-media.com
But what hasn’t changed is EOG’s focus on sharing the stories of the exciting, dynamic and innovative businesses that make this sector their home
Assistant Editor - Will Daynes Staff Writers - Danielle Champ, Jessica Olley Managing Art Editor - Fleur Daniels Art Editor - David Howard Art Editor - Paul Gillings Sales Director Alasdair Gamble Business Development Director Philip Monument Research Managers Michelle Fontaine, Natalie Griffiths, Jo-Ann Jeffery, Ben Richell, Basil Sharpe Editorial Researchers Adam Blanch, Victoria Burke, Mark Cowles, Jodie Garringer, Jeff Goldenberg, Dan Harrison, James Page, Wendy Russell, Richard Saunders, Kieran Shukri Advertising Sales Johanna Bailey, Mike Berger, Jessica Eglington, James Fuller, Alex Hartley, Reid Lingle, Theresa McDonald, Theresa Stark, Sam Surrell, Gregory Waller Florida General Manager Ryan Finn Boston General Manager Joy Francesconi Custom Media Sales Dan Bess Digital Sales Mike Psimis Subscriptions i.kidd@schofieldpublishing.com Administration Rory Gallacher, Ibby Mundhir Accounts Rachael Leftley
Focus on excellence Hello and welcome to the January issue of Energy, Oil & Gas. I am so thrilled to be able to introduce issue 200 of the magazine. It feels like a fantastic milestone and I am proud to still be editing the magazine having been here right from the start! Of course, the subjects we’ve been discussing over the years have changed, as focus increases on renewable options, legislation changes and pressure to address climate change increases. But what hasn’t changed is EOG’s focus on sharing the stories of the exciting, dynamic and innovative businesses that make this sector their home. From day one we’ve endeavoured to highlight the strengths and ground-breaking approaches that they are introducing, using and embracing in their work to advance towards a cleaner tomorrow. I am looking forward to the next 100 issues, and if you would like to be included in our pages, please don’t hesitate to get in touch.
© 2022 Schofield Publishing Limited all rights reserved Schofield Publishing Ltd - Corporate Head Office 10 Cringleford Business Centre Intwood Road, Cringleford, Norwich, NR4 6AU, UK T: (312) 854 0123 | T: +44 (0) 1603 274130
EDITOR LIBBIE HAMMOND
Finelight Media LLC 2240 West Woolbright Road, Suite 402 Boynton Beach, FL 33426 Tel: (561) 778 2396
Energy, Oil & Gas Magazine @EOG_magazine
PLEASE NOTE: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.
ENERGY,OIL&GAS
energy-oil-gas.com
1
REGULARS
18
4
4 6 8
Energy The innovation we need to combat climate change already exists and hydrogen is one of the alternative options that requires our investment, research and development
Carbon pricing Carbon pricing discussions continue apace on the global stage, with support growing in the US and the idea featuring in the Glasgow Climate Pact agreed as part of COP26
Data How a solar business has put technology in place to bring its data and operations into one centralized platform, and how that has been critical to its ability to scale and grow
Encore Energy
42 10 14
2
Green energy Why the recent energy crisis could well be the tipping point for the UK’s green energy transition and the complexities of moving a nation to clean energy
News Some of the recent developments within the oil and gas industry
ENERGY,OIL&GAS
energy-oil-gas.com
Edina
COVE
PROFILES COVER STORY
22
ArcelorMittal Belgium
36
Bousted International Heaters PROFILE
ly We are current undergoing both small and large ts expansion projec ls to cater for biofue and eventually chemicals, which g buildin to relates our new tank facilities. We foresee that we g will keep growin als existing termin and of course continue to look for possible but acquisitions, they need to be io, fit for our portfol which means that they need to be into fully integrated the supply chain our for the users of terminals
Age is burt a numbe
youth, Despite its e s has made impressiv
Alkion Terminal ing to its strongly committ ent expansions by a working environm core values to create team and the fulfilling for its that is safe and
the environment le feat when within It is quite a remarkab to reach a business is able space of five years, Alkion countries. Although the shores of five in 2016, the only established of Terminals was a European network company has created strategically liquid storage with tailor-made bulk
60
ENERGY,OIL&GAS
energy-oil-gas.com
, s in France, Portugal positioned terminal as well as the Netherlands, Spain, Italy and in Amsterdam. the Netherlands headquarters in speaks to company’s CEO, Rutger Thiel, the Alkion ing developments us about the outstand how it and since its inception has undertaken sustainability contribute to the is determined to oil industry. ng through the evolution permeati , renovated we have upgraded “Over the years, group. into one terminal and built ourselves cture s consists of infrastru Alkion Terminal and energy Capital Partners investor InfraVia
ALS ALK ION TER MIN
e our Finches to guarante expert Coloured s are nce. Our terminal optimal performa onal the main internati accessed through Mediterranean in this case the shipping lanes; storage of liquid and Atlantic. Although service, primary our is fuels chemicals and and gly storing biofuels we are also increasin of products but also a range renewable fuels, says. lubricants,” he g like base oils and specializes in supplyin Although Alkion distributors, turers, refiners and chemical manufac niche markets. business within it also keeps its
found in the trading terminals It avoids larger According to of its operations. surrounding areas is threefold of the company Rutger, the success of business is only and its careful selection will be trading terminals one part. “The oil transition energy to the increasingly exposed our view, that of the decade. In end the towards in demand for those will result in a decrease s. elaborate he ,” is types of terminals the company’s success The other side to s who work skilled employee owed to the highly the flowing and make to keep the business ENERGY,OIL&GAS
xx
energy-oil-gas.com
ENERGY,OIL&GAS
PROFILE
NAT GAS OLIN
Greener and better 61
It has been three
years since
its startup and already Natgasoline has established itself as the largest methano l production facility in the US as a result of its strategic location. The Texas Gulf Coast has provided the company with access to excellent distribution and logistics infrastruc ture, and energy-oil-gas.com
speaking with the company’s Plant Manager, Tim Crocker, we learn about how Natgasoline is committed to the Texan commun ity and how the use of local resources is helping it achieve greener goals in the methanol manufac turing industry. But what exactly is methanol? Also known
as methyl alcohol, the clear, colorless liquid is mostly used to create fuel, solvents, additives, and antifreeze. In addition to a wide array of other new applicatio ns, the use of methano clean fuel is becomin l as a g increasingly common At Natgasoline, . methanol is made by reforming Natural Gas and Steam; these two
Your company profile here
elements are combine d, heated, and passed through a catalyst to produce synthesis gas. Then that gas gets compressed in the methanol catalytic converter s to convert the synthesis gas into methano l and water, which is finally distilled to purify the product by removing all the water to 99.99 percent methano l purity. ENERGY,OIL&GAS
ENERGY,OIL&GAS
energy-oil-gas.com
energy-oil-gas.com
xx
3
E LLC
Collaborate
for success SCIENCE AND INNOVATION ARE CRITICAL TO CLIMATE CHANGE SOLUTIONS SAYS DR. TOM MASON
“The facts are clear: we must limit warming to 1.5C. Thanks to science, that is feasible - the technologies are already available.” At the end of 2021 Sir Patrick Vallance spoke at COP26, making it clear that science is the solution to limiting any further damage to our fragile planet. However, the ‘pledges’ being made have unfortunately not had the desired effect on limiting global warming to 1.5C The Climate Action Tracker (CAT) calculated the world is heading for 2.4C of warming. There is no greater time for ambition and action. We already have the innovation available that can make the difference we so sorely need. Enter hydrogen. Science and the dedication of its experts is how we determined where we are today. The extreme changes we must make across the globe to save our planet from utter destruction. There is no more time for words, we must move to full blown action to rectify the damage that has been caused. However, just as science has provided the information
4
ENERGY,OIL&GAS
energy-oil-gas.com
which has brought us to this moment in time it can also offer us a wealth of information to develop a plan of action moving forward.
The time is now The innovation we need to combat climate change already exists thanks to a vast array of dedicated individuals alongside businesses pushing the envelope for the greater good. We must be bold and invest in putting these innovations into practice, not just on paper. The International Energy Agency’s (IEA) most recent report ‘Net Zero by 2050’ tracks the progress and development of clean energy and renewable technology worldwide. It highlighted almost half the CO2 reductions required by 2050 will come from currently demonstrable technologies. It also shares the real need for major investment from public and private sectors to overcome the financial challenges we currently face scaling these types of technologies.
ENERGY the power of science and innovation to address key challenges blocking the path to a Net Zero future. Bringing together countries from across the world and pooling the scientific expertise they have to offer aim to bring a different voice to policy making which could hopefully bring down the barriers around specific Net Zero challenges. Whether the approach of this partnership will allow us to completely move these roadblocks out of the way is yet to be determined but where science can provide us with the insight to make adaptations, policy must give us the room to implement them.
Why hydrogen? Hydrogen is one of the innovations that requires our investment, research and development. There are a number of areas where it has already been identified as an optimal clean energy solution but it is time to scale - now. We must move from demonstration to fully operational by the end of this decade. The initiative has talked about a huge drive towards decarbonizing hydrogen production and making it accessible as a clean energy solution across sectors. This can only happen by investing in infrastructure, its associated technologies and carrying on research into improving efficiency.
Where is the silver bullet? Sadly, there is no ‘silver bullet’ technology, no single piece of science or a single country that can deliver a solution to climate change and limit global warming to the point where we can live sustainably. The positive news is that by working together and sharing the information and solutions we have at our fingertips, we can move forward. The resources and the development of innovative solutions are already there for us to benefit from. A collaborative approach across industry and government globally will give us a fighting chance for a clean and stable future.
The benefit of working together. Twenty-six governments including the UK announced new ‘missions’ as part of the Mission Innovation Initiative in 2021. The missions laid out, aim to accelerate innovation and be the catalyst needed to jumpstart investment. The countries involved want to work together on the development of clean technologies for cities, industry, carbon dioxide removal, and the production of renewable fuels, chemicals, and materials. Mission Innovation’s ‘innovation missions’ now cover sectors responsible for more than 50 percent of global emissions. These include transitioning cities across the world where energy consumption is the highest and most concentrated to adopt clean energy technologies with 50 ‘blueprint’ cities planned globally. The initiative is also focused on hard to abate sectors such as chemicals, steel, and cement, where we need to see a real push on making low-carbon materials and industrial technologies affordable. Part of the COP 26 legacy saw the UK COP Presidency along with Italy forming a global partnership, leveraging
DR TOM MASON Dr Tom Mason, CEO & CTO at Bramble Energy, is an experienced engineer with a demonstrated history of developing and commercializing novel high-impact technologies with a global reach. Bramble Energy is powering a Net Zero world - today - and is proving to be a real game changer in solving key challenges in the production of hydrogen fuel cells including: lead times, up-front investment, manufacturing cost and scalability. Bramble Energy, through revolutionary fuel cell design and manufacturing techniques, has developed the unique printed circuit board (PCB) fuel cell – the PCBFC™. This is a patent protected fuel cell that can be manufactured in almost all printed circuit board (PCB) factories worldwide. For further information please visit: https://www.brambleenergy.com/
ENERGY,OIL&GAS
energy-oil-gas.com
5
Plan
ahead
CARBON PRICING IS LOOMING CLOSER SAYS RICHARD COCKBURN
C
arbon pricing discussions continue apace on the global stage. Carbon pricing essentially involves putting a price on emissions so that low carbon choices are incentivized. A World Bank report has suggested that around 64 carbon pricing mechanisms are in play internationally, covering more than 20 per cent of global emissions and these numbers are expected to increase rapidly. A major concern of businesses, especially those operating multi-nationally, is the cost of dealing with a patchwork quilt of differing carbon pricing instruments from country to country. A global carbon pricing mechanism applying across borders is reportedly being looked at. Such a worldwide system was considered during the negotiations leading to the 1997 Kyoto Protocol and in fact a conclusion on carbon pricing was ratified by 191 countries. This initiative largely fizzled out though not least as the US was not one of the ratifying countries.
6
ENERGY,OIL&GAS
energy-oil-gas.com
Various bodies, including the International Monetary Fund (IMF), the World Bank and the Organisation for Economic Co-operation and Development have called for action in this area. The IMF proposed that an international carbon floor price be implemented, stressing that currently only one-fifth of carbon emissions are covered and that the globally average price is only USD3 per tonne. In the US, support is growing for carbon pricing. Recently, former U.S. Energy Secretary Ernest Moniz was reported as saying “…yes, a carbon pricing mechanism, I think, would be the most straightforward way of doing two things. One, to shape the playing field – assuming the price, frankly, is high enough. But secondly, what carbon pricing would do is create a pool of resources that I would strongly urge be used in a progressive way” [CNBC, 6 September 2021]. The Biden administration is expected to be more inclined to consider carbon pricing than the previous US administration. The Paris Agreement, adopted in 2015, provided outlines
CARBON PRICING several years. Effectively, this is a cap and trade emissions scheme – emitters bid for emission allowances to set off against their emissions or to trade if they are unused, with the number of allowances reducing over successive auctions. The UK has also been looking at whether to introduce a carbon border tax to impose financial penalties on imports from nations with no or less stringent carbon reduction measures. The UK has though held back from this for now largely to see how the EU’s proposals for a similar carbon border adjustment mechanism plays out. In the UK, there is also the Carbon Price Support mechanism – in essence, a tax paid by fossil fuel power generators to supplement the UK ETS – and the Climate Change Levy (CCL) which is a levy on certain energy supplies to non-domestic consumers to encourage the use of low carbon fuels. Carbon pricing featured in the Glasgow Climate Pact agreed as part of COP26 last November. Rules will be put in place to give substance to Article 6 of the Paris Agreement, with a view to creating an overall market for carbon emissions. Whilst there was widespread disappointment at COP26 with India's last-minute intervention to change language on ‘phasing out’ coal to ‘phasing down’ in the final pact, overall the event was important for the signals it sought to send to governments and markets around the world and carbon pricing now looms closer. It is very unlikely that UK businesses will see a dramatic change in the carbon pricing regime immediately as a global system or any instruments which are agreed will take a reasonable period of time to roll out. The more likely change in the near to mid-term might be the introduction of carbon border adjustment mechanisms in the EU or elsewhere. Either way, as most UK businesses are already doing, planning ahead for reducing emissions makes financial as well as environmental sense.
RICHARD COCKBURN for three possible carbon pricing tools – bilateral agreements (whereby two countries could effectively share each other’s Nationally Determined Contributions – national emissions ceilings, effectively), a Sustainable Development Mechanism (an international market for carbon) and a co-operative, or non-market, voluntary approach whereby assistance would be given to matters such as climate policy development. The biggest challenge would be meshing together differing national carbon pricing systems and bringing in countries which currently have no carbon pricing mechanism. Agreeing a harmonized carbon price would be very difficult not least due to the regional variations already in place – by September 2021, the price per metric ton of carbon in the UK emissions trading scheme (ETS) had risen to well over £50, and over EUR60 in the EU ETS, whilst the equivalent Chinese price was below USD10. Following Brexit, the UK introduced a UK ETS, based largely on the existing EU ETS which had been in place for
Richard Cockburn is a partner and head of energy at Womble Bond Dickinson. He is dual-qualified in Scotland and England & Wales. Richard has worked with developers and contractors in the renewable energy sector on projects ranging from onshore and offshore windfarms to renewable heat, solar, wave, tidal and other projects. His current work includes hydrogen and carbon capture, utilisation and storage projects across the UK. Ranking in the UK's top 20 law firms, WBD provides comprehensive legal services to clients across a wide range of sectors, from seven cities across the UK, and 19 offices in the US. Since the earliest renewables projects over 25 years ago, the firm has advised key energy sector clients ranging from leading independents to major utilities and infrastructure funds. For further information please visit: https://www.womblebonddickinson.com/uk
ENERGY,OIL&GAS
energy-oil-gas.com
7
Technology to
support growth TITAN SOLAR POWER USES DATA TO EXPAND ITS GLOBAL FOOTPRINT, SO CONSUMERS CAN REDUCE THEIRS. BY AARON CASILLAS
D
espite the pandemic, the U.S. solar industry had a record year in 2020 with the industry reporting a 43 percent year-over-year increase in installations. In 2021, the US solar energy sector surpassed three million installations, the vast majority of which were residential, according to the Solar Energy Industries Association. Much of this growth comes as consumers and commercial businesses look to reduce energy costs and turn to more sustainable power sources to align with the United States 2030 emissions target.
8
ENERGY,OIL&GAS
energy-oil-gas.com
As the largest residential solar installer in the U.S., I understand how navigating an abrupt increase in consumer demand presents both opportunities and challenges. Like many of the industries impacted by the pandemic, Titan Solar Power experienced a record number of installations while navigating growing pains. While technology may not always be a focus for energy and gas executives, having the right infrastructure in place has allowed my business to grow and scale responsibly. Titan Solar Power has benefited from technology by using proprietary data to make informed decisions on supply
DATA chain, accounting, inventory management, and more. Here are a few lessons I've learned on the importance of using data to scale:
Track your soft costs With increased demand in installations comes increased data tied to project management, accounting and other systems. While solar installations may seem like a straightforward process, there are many moving parts to manage including system design, utility company negotiations, permits, and financing options, such as loans and leases. This introduces a costly side of the solar industry that is largely unseen: soft costs. These costs – which include expenses associated with customer acquisition, marketing, field labor, financing, inspection, and permitting – typically run up to 66 percent of the total cost to operate a residential solar business. And these costs can vary significantly in today’s fragmented energy marketplace. At Titan Solar Power, we were acutely aware of our monthly hard and soft costs, but needed to have greater visibility, or a single data source, to better manage and scale our operations.
Connect disparate data When you’re in the midst of growth it takes real effort to pause and identify where there are problems before small issues become big ones. Symptoms may become apparent long before you’re able to figure out what the underlying issue is. We had different systems for everything, from project management to accounting. As we grew, it became more and more cumbersome to efficiently share data across these systems. With more than 420 different data fields required for every project, our homegrown project management system couldn’t handle an influx of orders. We were drowning in data that we didn’t know what to do with, let alone properly use to make informed decisions. It became apparent that the underlying technology and the disjointed systems we relied on were leading to a myriad of challenges impacting us across the organization. Our operations were inefficient and often found ourselves needing to hire additional staff to patch the holes in the different systems. This is when we knew it was time to upgrade to a unified cloud-based business applications suite, like Oracle NetSuite.
Cater to the nuances of your business Every industry has unique challenges and opportunities and a solution that may work for one industry often may not work for another. Solar installation is a booming business, but it’s also very complex. There are many moving parts, varying labor fees and coordination between dozens of different sales organizations per project. We needed to be able to get everything on one system so that we could do a high-level analysis of our business. We also needed a simple automated process that could pay out commissions to our dozens of
sales organizations. In short, we needed one system that could do it all. We turned to Blu Banyan’s SolarSuccess, a SuiteApp built on NetSuite that is specifically designed to help solar installers manage their business – nuances and all. With NetSuite and Blu Banyan, we finally had a unified view of data across the company including real-time insights into project status, costs, inventory, pricing, purchasing, and profitability. It was the best solution for us because it handles accounting and operational logistics items in tandem with project management and it allowed for customizations to help us manage our unique business – including a solar-optimized sales pipeline management system.
Looking toward a bright future Titan Solar Power has grown significantly and we’re on track for even more growth in 2022 as our customers take action to reduce their carbon footprint. By 2030, solar installations are expected to quadruple from current levels. Putting technology in place to bring our data and operations into one centralized platform has been critical to our ability to scale and grow as a business in the last few years and will serve us well as we look to keep pace with the growth expected in the next decade. With the right systems in place, you too can manage data more effectively, control costs, better serve customers, and ultimately turn growing pains into opportunities for a bright future. For a list of sources used in this piece, please contact the editor.
AARON CASILLAS Aaron Casillas is Technology and Infrastructure Director at Titan Solar Power. Titan Solar Power partners with likeminded solar sales companies to deliver world-class installations with industryleading customer experience. Titan handles all aspects of a solar module installation. As a Titan partner, you can rest assured we are just as committed to ensuring every one of your customers are elated with their decision to go solar. For further information please visit: https://titansolarpower.com
ENERGY,OIL&GAS
energy-oil-gas.com
9
The time
is now
THE PERFECT STORM; WHY THE ENERGY CRISIS IS A TIPPING POINT FOR GREEN ENERGY TRANSITION
W
e are at a pivotal time in the UK’s green energy transition. The British Prime Minister has stated that all of the UK’s electricity must come from clean energy sources by 2035. Not only do we need to meet this to achieve net zero, quite frankly, we have no choice but to deliver on this if we wish to save our planet from the existential risk of climate change. That being said, it’s not going to be an easy ride. Chris Bowden, managing director of Squeaky, the leading marketplace for 100 percent clean energy, discusses why the recent energy crisis could well be
10
ENERGY,OIL&GAS
energy-oil-gas.com
the tipping point for the UK’s green energy transition and uncovers the complexities of transitioning a nation to clean energy.
A black swan event After a period of historically low energy prices, during the Covid induced lock downs, gas and power prices started their inexorable rise to hit historic highs in late 2021. In the UK problems mounted left and right with several energy suppliers going bust and millions of UK households experiencing significant increases in their energy bills. The
GREEN ENERGY
But no matter how painful and expensive the transition from fossil fuel to clean energy will be, there is no escaping the fact that it must be done. Getting there requires a complete rethink of the energy system, an overhaul of supply chains, a sharp focus on deploying and scaling up existing technologies alongside rapid innovation, and a high degree of global collaboration and careful diplomacy a greener world. Ultimately, it could be the tipping point that we needed in the nation’s transition to clean energy.
Sky high electricity prices So, what got us here in the first place? Well, global demand for gas fell during the pandemic, and this, combined with reduced economic activity in the UK drove electricity prices to historic lows of £20/MWh. However, as global economies started to recover post Covid there was a surge in the demand for liquefied natural gas (LNG) and Asia outbid the UK and Europe for these LNG cargoes. This combined with lower-than-normal gas flows from Russia drove gas prices in the UK to historic highs. If you combine all of this with a structural upward shift in carbon credit pricing, low levels of renewable generation from wind, and a fire on the French interconnector, it’s clear there was a confluence of factors that pushed electricity prices to levels never seen before. Undoubtedly, some FTSE100 companies would have felt the strain of the rapid increase in energy costs, particularly those whose budgets were based on the price of the previous years. Some will be seeing their energy bills almost double as we move into 2022, and when these costs are already in the millions, there may be some who will find themselves in a difficult situation where margins will be squeezed or prices to end customers will have to rise. And it’s not just the private sector that felt the impact, the public sector was also, and continues to be, under huge pressure, not least because it’s much harder to pass on these higher energy costs to customers.
Oil majors and their increasing exposure to power markets industrial and commercial (I&C) and public sector was also directly impacted by the massive rises in wholesale power prices which peaked in December 2021. We witnessed power price volatility like never before and the situation was, quite frankly, shocking. Of course, the world has faced volatile energy markets and supply squeezes for decades. But the big difference this time was the fact that this was the first major energy crisis of the clean-power transition. And whilst there has and will be fallout from the recent wholesale market volatility the net effect could be beneficial in the movement towards
On top of this we shouldn’t underestimate the increasing involvement of the oil majors here. BP and Shell were heavily involved in the market meltdown. Let’s take for instance Pure Planet, a renewable energy firm that was backed by the oil company BP, and Colorado Energy, which collapsed under the weight of soaring gas prices in October 2021. The oil giant, BP, chose to withdraw support for the company owing to the risk of ‘large potential losses’ by continuing to operate while gas prices were high. The oil majors had their part to play, and one has to question what they gained from pulling their support from several energy suppliers.
ENERGY,OIL&GAS
energy-oil-gas.com
11
Why is this the perfect storm The positive news, however, is that paying more for gas and power helps to spur on the deployment of renewable energy. This is because as more countries switch from coal to gas, we will inevitably see more pressure on gas prices. This, combined with increased carbon pricing, has resulted in an unintentional, yet perfect storm for the UK’s green energy transition. Let me explain further, not least because this is a bold statement to make and could seem insensitive to those suffering as a result of the crisis. Companies who buy renewables from projects that need
12
ENERGY,OIL&GAS
energy-oil-gas.com
a Corporate Power Purchase Agreement (CPPA) to get funding can actually shield their companies from volatile power prices and ensure greater certainty in their costs. This is because the power price needed by the developer of the renewable project isn’t linked to fossil fuel prices, instead it is linked to the cost of solar panels or wind turbines, the assets operating costs and the cost of capital. And whilst the cost of solar panels has risen steeply over the last 12 months the levelized cost of energy for a wind or solar project is still below £50/MWh. This compares very favourably to 2022 power prices of over £100/MWh. This means that organizations who,
GREEN ENERGY prior to the energy crisis entered a CPPA, will have successfully insulated themselves against this market volatility and will be reaping the rewards of stable and lower power prices.
Reality check: the transition to renewables will be slow But what does this mean to a transition to a largely clean energy system in the future? In many countries, we are seeing energy systems move towards an increasing amount of intermittent clean power generation (wind and solar) combined with baseload generation like nuclear, balanced by dispatchable generation which is primarily gas. In these markets the marginal price is primarily set during peak demand by these dispatchable fossil fuel generators, so we are inextricably linked to fossil fuels until we have alternatives like low carbon dispatchable generation, storage and demand side response (DSR). Shifting too quickly to a renewables system without replacing the existing fleet of dispatchable generation to meet peak demand will inevitably create very high prices. Clearly no one wants this. The integration of renewable sources in the energy system is one of the key components of any energy system decarbonisation strategy. However, this integration raises many challenges in terms of planning, operation, and reliability practice. Renewable technologies are not comparable with fossil-based generation in terms of dispatchability. This translates into high system costs of renewable generation, as it requires holding significant back-up capacity to ensure a balanced energy supply throughout the day. In fact, these challenges will only further increase as the share of renewable energy generation rises to levels never witnessed before. To date, these aspects have been very difficult to model and forecast in the economic analyses of renewable energy deployment although the recent covid induced lockdown gave us some early signs of what’s to come. As demand dropped significantly during the lockdown and renewable energy generation increased, at times, to become the majority of the supply on the system we experienced negative power prices. This is driven in part by the fact that many renewable generating assets are often unable or unwilling (due to other incentives like renewable certificates) to curtail their generation even if they are effectively paying to generate.
The green energy transition is not a choice The transition to green energy isn’t going to be easy and, I won’t lie, it will be painful. But no matter how painful and expensive the transition from fossil fuel to clean energy will be, there is no escaping the fact that it must be done. Getting there requires a complete rethink of the energy system, an overhaul of supply chains, a sharp focus on deploying and scaling up existing technologies alongside rapid innovation, and a high degree of global collaboration and careful diplomacy. This may be a long list, but we cannot delay action any longer. The time to start is now.
For a list of sources used in this piece, contact the editor.
CHRIS BOWDEN Chris Bowden is the founder and MD of Squeaky, the leading marketplace for 100 percent clean energy. Squeaky enables corporate and public sector organisations to buy clean electricity directly from wind, solar and hydro generators. To contact Chris, email: chrisbowden@squeaky.energy Squeaky is the leading marketplace for clean energy. Squeaky enables corporate and public sector organisations to buy 100 per cent clean electricity directly from wind, solar and hydro generators in an efficient, cost-effective way using a unique combination of expertise, software and contracts. For more information, visit: https://www.squeaky.energy/
ENERGY,OIL&GAS
energy-oil-gas.com
13
NEWS
Milestone project
New design Q.E.D. Environmental Systems, Inc. has announced upgrades to its industry-leading ORP215M-R precision orifice plate wellhead. The QED ORP215M-R wellhead combines easy plate exchanges for more accurate flow measurement with precise adjustment of gas flow, especially at very low rates (below 10 standard cubic feet per minute). The new design includes a complete kit of six orifice plates securely attached to the wellhead for quick access. A permanent stainless-steel S-type orifice plate retainer keeps the plates close at hand and helps prevent loss of the orifice plates.
Mine equipment Metso Outotec has signed a services contract for the delivery of four ball mill upgrade packages to a copper and gold mine in Asia Pacific. “The customer’s performance objectives were achieved by offering a technical solution which increased the operating volume of the mill and allows for future process optimization.
Osbit’s Smart Tower System for FTAI has been lighting up the skies at Wilton Engineering in the UK and can be seen for miles around the Transporter Bridge, especially at night. The 40-metre tower was installed on site in December 2021 and represents the first major milestone in Osbit’s mission to deliver this globally innovative piece of technology, which will be used to support energy transition through extending the life of existing oil wells. In April 2021, Osbit won a contract with FTAI Offshore, a subsidiary of Fortress Transportation and Infrastructure Investors LLC (FTAI) to design and construct an innovative new well intervention system. Osbit’s Smart Tower System facilitates integrated riser-less and riser-based well operations at water depths of up to 1,500 metres and will be installed on FTAI’s flagship DP3 Vessel M/V Pride. The system combines elements of modular technology from Osbit’s experience in well intervention and offshore handling with a series of innovations to improve operational safety, flexibility and accessibility. Brendon Hayward, joint MD at Northumberland-based Osbit, said: “This is an exciting project for us and it’s fantastic to have reached this significant milestone. It demonstrates our extensive experience of delivering complex well intervention systems and large scale offshore projects. “It’s great to see the tower lighting up the skies on Teesside but that’s not the end of the story, so we’re looking forward to sharing more details in the coming months. Watch this space!”
Providing these thirty+ year old mills a new lease of life is exciting for Metso Outotec and builds on our sustainability promise of delivering circular offerings,” says Jonathan Allen, SVP, Grinding, Bulk and Pyro business line of Metso Outotec.
Small wind option Crossflow Energy has launched the Crossflow Wind Turbine. Reliable and easy to install, the unique turbine specifically addresses the issues that have historically inhibited the adoption of small-scale wind. The development means wind power is at last a viable option for embedded renewable generation. Wind power could now be available in everyday situations such as homes, factories, motorway gantries, public buildings, as part of road and rail infrastructure and in challenging environments such as remote, ecologically sensitive locations.
14
ENERGY,OIL&GAS
Green power Neste has signed its first renewable hydropower purchase agreement with Vattenfall, one of Europe’s largest producers and retailers of electricity and heat. Vattenfall will deliver the hydropower from its Nordic hydropower plants and the deliveries will start at the beginning of January 2022. Neste is committed to combating climate change and reducing climate emissions both globally and locally. Its transition to renewable electricity has also progressed in other Neste’s production sites according to plan. For example, about 75 percent of the electricity used in the Rotterdam refinery in 2021 has been renewable electricity certified with Guarantees of Origin. “We aim to make the Porvoo refinery the most sustainable refinery in Europe by 2030 and reach carbon neutral production by 2035. We will achieve these ambitious targets by reducing greenhouse gas emissions from production and using renewable electricity, for instance. Thanks to the hydropower agreement we have signed, we will reach an important milestone at the beginning of 2022 as our Porvoo refinery and operations in Naantali will use 100 percent renewable electricity. We will continue to work actively to achieve carbon neutrality,” says Markku Korvenranta, Executive Vice President, Oil Products at Neste.
energy-oil-gas.com
Award winner With a mission of increasing the reliability of critical remote infrastructure while reducing its carbon impact, Adaptive Energy is bringing propane power generation technology into the next frontier, which recently earned it the 2021 Global Innovation Award at the Global Technology Conference (GTC) of the World LPG Association Forum. “To receive such an award is the highest honor our industry can
Cable contract
bestow on a technology partner and all of us at the Propane Education & Research Council are so proud
Nexans has won a significant turnkey contract with Ocean Winds to design, manufacture, install and protect the 220kV subsea and onshore export cable system for the Moray West offshore windfarm project. Nexans cabling solution will connect the wind farm to the national grid, delivering electricity to up to 650,000 Scottish homes and helping achieve Scotland’s ongoing commitment to net zero target by 2045. The cable system consists of Nexans’ industry-leading High Voltage Alternating Current (HVAC) cabling which will connect the wind turbines to two offshore substation platforms (OSPs). The 220kV cabling, including 170km of land cables and 100km of subsea cables, will be installed from each offshore substation platform along the full route to the project specific onshore substation. The cables will be manufactured at Nexans’ plants in Halden and Rognan, Norway, Charleston, USA and Charleroi, Belgium and installed by the most advanced cable laying vessel Nexans Skagerrak. The onshore part of the project will be overseen and delivered by Nexans’ expert personnel based in Edinburgh, Scotland. The Moray West project is an important step towards the UK’s goal to provide enough offshore wind energy to power the country and will support Scotland’s contribution of 10GW of wind energy to meet the UK’s goal of 40GW by 2030.
to see Adaptive Energy receive the recognition,” said Tucker Perkins, President and CEO at PERC. “To be selected as the Global Innovation Award winner is outstanding.” Adaptive Energy is a leading designer and manufacturer of solid oxide fuel cells (SOFCs), which provide rugged, dependable
REAL COPY
power for higher uptimes, less maintenance, and low-carbon
operation. SOFCs enable greater use of alternative energy for critical infrastructure. SOFC technology provides backup and off-grid power for customers where nonstop power
LNG leader
is vital including rail crossings, remote radio networks, weather aviation cameras, and other critical
The world’s two largest economies - the US and Mainland China - are poised to be the world’s top export and import markets for liquefied natural gas (LNG) in 2022, says a new report by IHS Markit. The report, entitled LNG Trade in 2021: Runaway Recovery finds that the US, which was the third-largest LNG exporter behind Australia and Qatar for the full year of 2021, is poised to claim the top spot in 2022. The US was the largest source of LNG supply growth in 2021, adding 25 million metric tons (MMt) amid continued buildup of liquefaction capacity as well as the ramping up of output from plants turned down the previous year. “A new map of LNG is taking shape as 2021 became the year of rapid recovery, making the oversupply and price lows of 2020 seem like a distant memory,” said Michael Stoppard, chief strategist, global gas, IHS Markit. “It is a tale of two markets with China fuelling the demand surge as the world’s top importer and the US, poised to become the world’s leading exporter, providing the supply push.” Among other key LNG trends observed in the report: • Long-term contract signings rebounded to an all-time high after a pause in 2020 • Spot LNG prices have soared past previous records • Brazilian imports hit all-time high amidst drought • Amid strong global demand, European LNG imports fell • Outside of the US, utilization rates suffered
infrastructure. In February 2021, this technology kept railroads in Texas safe by powering crossings and switches despite the power outages caused by Winter Storm Uri. The Michigan-based company was also selected as runner-up for Most Innovative Propane-Powered Technology, making it the only SOFC company ever to receive this prestigious award.
ENERGY,OIL&GAS
energy-oil-gas.com
15
Exclusive Feature
Powering forward With exciting new discoveries being explored and ambitious plans for future development, Encore Energy has positioned itself as an attractive proposition to qualified investors
Created just over a decade ago, Encore Energy (Encore) is a small, independent oil and natural gas producer, located in the southeastern United States. Specializing in the horizontal drilling of what company President, CEO, Chairman and Founder Steve Stengell describes as ‘shallowtight oil and natural sandstone’, the company is currently focusing its attention in the Berea sandstone oil and natural gas formation of Lawrence County, Kentucky. The horizontal Berea oilfield is the highest producing formation and oil production play in the Commonwealth. As the most prominent oil play in Kentucky, the Berea reportedly yields an estimated 20 percent of the state’s annual oil production,
18
ENERGY,OIL&GAS
energy-oil-gas.com
making Lawrence County the number one oil producing county in Kentucky, in a state where more than 60 counties produce oil. With thousands of acres of land under agreement in Lawrence County, Encore’s proven reserve position includes select tracts such as Peters Branch and Fallsburg that are located offset to existing proven oil fields. “We have recently made horizontal oil and natural gas discoveries in the Peters Branch area, and we are currently developing a natural gas transmission pipeline system, which will assist us in optimizing oil production and selling natural gas to the end purchaser,” Steve reveals to Energy, Oil & Gas. “We also plan to drill multiple horizontal wells to optimize long-term production and reserves
PROFILE
for oil and natural gas. There are multiple off-set producing wells nearby to Encore’s projects that have reported initial production rates of more than one hundred barrels of oil per day per well,” added Steve. The pipeline to which Steve referred is three miles long, and while natural gas is a secondary source of income for the company, it still offers a significant opportunity. “That project is currently underway and we anticipate it should be fully operational in the very near term,” Steve states. “We are in the process of permitting to drill additional wells to go into that pipeline and we foresee as many as six horizontal wells producing into that pipeline eventually.” While the gas pipeline project clearly
ENCORE ENERGY
represents a noteworthy part of the operations of Encore, oil remains its primary product, and extracting it from what is considered a ‘tight oil play’ requires innovative technology, dedicated staff and an experienced hand at the wheel. “We are utilizing ‘state-of-the-industry’ horizontal well technology and ‘plug and perf’ fracking technology to produce our oil, with our efforts focused on maximizing the reserve potential at each lease,” Steve explains. “In addition to Peters Branch, we have a total of eight horizontal proposed drill site locations in Berea.” To ensure that it has the most experienced team on the ground, working in harmony with the best equipment and well service providers, Encore works exclusively with directional companies and contractors that specialize in horizontal drilling and fracking, and its projects feature extensive third-party geophysical/ economic due diligence. The business is very proud of the relationships it has built with the ‘good people’ of East Kentucky, including mineral owners, landowners, contract drillers, geologists, well service companies, engineers and many other successful oil and gas operators, people and organizations across the state of Kentucky. It is also gratified to see the positive economic impact that its efforts are creating in some of the more rural and impoverished areas of Appalachia. Not only do qualified investors and mineral owners receive income and royalties from the production of oil and natural gas, the Commonwealth also receives additional income from the 4.5 percent severance tax, further creating and supporting many high-paying jobs for the region. “The businesses we work with have very localized experience in shallow tight oil and natural gas plays,” confirms Steve. Their expertise works in combination with his own impressive qualifications (an MBA from Western Kentucky University and graduate certification in reserves and evaluation from the Harold Vance Department of Petroleum Engineering at Texas A&M University) and his extensive career history in the oil and gas sector. Formerly the President and CEO of a highly successful, publicly-traded E & P Company with 50+ employees, Steve has comprehensive experience with oil and lease acquisition and production acquisitions, and has served as a keynote speaker at shale conferences and events. He also has broad investor relations and SEC compliance experience for private and public investors, and this is pertinent because Encore provides qualified high net worth investors with a niche ENERGY,OIL&GAS
energy-oil-gas.com
19
investment opportunity in the oil and natural gas industry. Steve gave some more details about why his business can be regarded as an interesting proposition. “What makes us unique, is that as we are a smaller, independent oil and gas operator, qualified, accredited investors participate directly with us, with no middlemen involved in the operations. We are the lease owner as well as the bonded operator for each project, so we can specialize in providing direct investment opportunities to high net worth, qualified investors. Encore’s horizontal projects are located in proven areas, and each proposed well is positioned off-set to existing horizontal Berea oil and natural gas production. Steve emphasizes that investing in oil and gas is an undertaking that is suitable only for individuals who are sophisticated in making business and investment decisions, and are aware that these types of speculative investments are subject to a high degree of risk, uncertainty, unpredictability, indefinite delays, and potential loss of investment. To mitigate some of the risks, Encore ensures and verifies that all of its investors are SEC defined accredited, and Steve describes why this is important. “We operate in full compliance with all state and federal requirements,” he asserts, “as set forth by SEC Regulation D, Rule 506c. This rule from the SEC allows investors who qualify as an ‘SEC defined accredited investor’ to participate in direct projects with us. In addition to tax benefits and potential income, the long-term reserve value of each well project plays an important role in achieving the investment’s objective. “It’s important to us that we make sure that our investors are qualified as required by the SEC, and we are dedicated to fully disclosing
20
ENERGY,OIL&GAS
energy-oil-gas.com
risks associated with these projects. We are very transparent through all phases of operations to the qualified investor and the methodologies that we utilize to mitigate various types of risk. Making full material disclosure to each qualified investor is very import to us,” added Steve. According to Steve, the approach that he and his team have adopted at Encore makes for ‘a better business relationship between Encore and its partners’. “When risks are appropriately disclosed to investors and those investors are properly qualified it makes for a more successful connection between the company and its investors,” he concurs. Indeed, working very closely with investors is a priority for the business and Encore’s management team encourages each investor to tour Encore’s corporate office and its field operations in Kentucky to see the company’s processes, first-hand. Steve believes it is this overall company philosophy that sets Encore apart from the rest of the competition. “We are the operator and the developer and investors make their investments directly with us, so there is no participation with a brokerage firm or an investment company. This allows for better transparency, better real-time reporting and it actually slightly increases the benefit of the tax deduction, because there are no companies serving as middlemen in the process,” he reiterates. Having referred to the tax implications of investing in oil and gas, Steve then went into explain some further specifics about how qualified SEC defined accredited investors are able to mitigate a good amount of the risk associated with oil and gas drilling, completion and production operations, through the gaining of quite generous tax benefits. The US government provides qualified industry investors with the ability to deduct nearly 100 percent of their investment in oil and gas against ordinary income in year one. “These tax savings can be quite lucrative, and are really huge in giving investors somewhat of a head start,” says Steve. “They can be deducted against all forms of active income, both state and federal, and can really provide major savings, especially in some states where the state and federal taxes collectively are 40-50 percent.” The tax benefits can be gained in the first year, and investors can then expect to receive potential revenue for many years following. “Furthermore, investors can not only deduct nearly 100 percent of their investment in the first year, but also benefit from something called tax depletion,” Steve adds. Depletion allowance for
PROFILE
small producers (and investors) means that they pay zero tax on 15 percent of their production income. Alongside these substantial tax benefits, investors in Encore also gain the advantage that they will own a direct working interest in oil and natural gas wells, rather than energy company stock, which is at the mercy of the stock market. When it comes to the revenues, Encore oversees the distribution of monthly income to participants for the shipments and sales of oil and natural gas. As an operator, Encore receives payment directly from oil and gas purchasers, such as Ergon and the Kentucky Oil Refining Company. As compared to nonconventional shale plays across the US, the Berea produces a high quality refiner-preferred crude oil that demands a premium price. “We look to maximize income from production revenue, as well as maximize reserves and optimize production and their values long-term - much like a real-estate investment,” adds Steve. Having worked in the oil and gas sector for his entire career and with experience in Texas, Oklahoma and now Kentucky, Steve has witnessed all the highs and lows that for which this market is known. EOG spoke to him right at the very end of 2021, and as he looked back at the past 12 months he reflected on this particular rollercoaster of more than a year, and the challenges that Covid-19 had wrought on the industry. “I could describe it as ‘the good, the bad and the ugly’,” he says, somewhat ruefully. “Like many other operators in the oil and gas industry, we have suffered from labor and equipment shortages, logistical problems, cost overruns and project delays, all caused by issues in the supply chain and the working environment. These were created by Covid and remain ongoing, despite higher prices for oil and natural gas. “The silver lining - if you will - of this, is that many oil producers may not be as active as they were, or might even no longer be in business, and that means there are more opportunities becoming available during a time where oil prices are going up. In fact, I would describe this as an unprecedented time, because we have a really bright future for oil and natural gas prices, and we have the lowest level of activity we have ever seen under these types of price levels.” Describing the current market conditions as ‘interesting’, Steve elaborated further on the significance of oil and gas prices and supply and demand – noting that these are always cyclical
ENCORE ENERGY
in nature and also, that some people feel the current US administration has made decisions that created even higher domestic oil prices. “We currently have a supply and demand model where the rig counts for drilling are at record lows,” he says. “The US domestic oil production industry (as well as the global oil industry) is operating and producing at a deficit to the actual demand and needs of supply, and so what we are seeing, since we are not drilling enough wells to replace the decline from our current production, is that we have reached an environment where we, and other experts, are projecting much higher oil and natural gas prices in the short, near and long-term.” Entering 2022 with increased confidence in its reserves and production potential and the belief that a strong recovery for the oil and gas sector is under way, now and in the years to come, Steve has a vision of growth for Encore over the next three to five years. “Once we drill and develop all of our existing horizontal Berea projects, I think we will see us moving onto reviewing and evaluating other similar shallow oil and natural gas plays across Kentucky and the Appalachian basin, some of which is already underway,” he finishes. “The overall objective for us going forward is to mitigate risk and grow production, income and reserve assets for our partners, longterm, while complying with all state and federal requirements and protecting the environment.” For more information regarding Encore and its projects, please contact Steve Stengell at (270) 438-9956.
Cautionary Statement Oil and natural gas investments involve a high degree of risk, uncertainty, volatility, and are only suitable for SEC defined investors. Actual results may vary and are beyond the control of management. No assurances can be made as it relates to the production, income, reserves, well costs, timelines and other projected estimates.
Encore Energy www.encore-energy.com ............................................ Services: Oil and gas exploration and production company
ENERGY,OIL&GAS
energy-oil-gas.com
21
The steel of
tomorrow Widely considered to be one of the world’s best-performing steel operations, ArcelorMittal Belgium is making the pioneering transition to carbon neutral steelmaking
22
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
ARCELORMITTAL BELGIUM
ENERGY,OIL&GAS
energy-oil-gas.com
23
PROFILE
ARCELORMITTAL BELGIUM
Part of the ArcelorMittal
Manfred Van Vlierberghe
24
ENERGY,OIL&GAS
Group, ArcelorMittal Belgium operates sites across its home nation, in Gent, Liège, Genk and Geel. A vastly experienced innovator of sustainable steel products for a wide range of applications, the organization is not only focused on creating the steel of tomorrow, but in contributing to a better global society. One way in which ArcelorMittal is working towards a better future is through a transition to net zero emissions along three pathways: • Further improvement of material and energy efficiency. ArcelorMittal Belgium has built up a tradition in this area as the company has been forced to be energy efficient due to the bottleneck of the blast furnaces. By constantly improving its energy efficiency, ArcelorMittal Belgium can use more scrap and produce more steel with the same quantity of hot metal from the blast furnaces. • Development of a Smart Carbon Pathway at the heart of the circular economy: energy-oil-gas.com
• Replacing fossil carbon with green and circular carbon. Examples are the use of waste wood from container parks and of plastic waste • Transforming waste gas into useful chemical compounds • Separating CO2 for further use or temporary storage • Embracing hydrogen as a reducing agent By implementing this roadmap, ArcelorMittal Belgium will make a significant contribution to ArcelorMittal Europe’s ambition to reduce CO2 emissions intensity by 35 percent by 2030 compared to 2018 and to become carbon neutral by 2050. Though the task ahead is challenging, CEO Manfred Van Vlierberghe believes that the organization has a number of important factors in its favor, including its workforce and the Gent site itself. “I’ve visited many plants around the world, but what we’ve got here is different,” Manfred explains. “We have a unique workforce, a
PROFILE
ARCELORMITTAL BELGIUM
unique drive, and a unique knowledge and productivity. “Located in Gent’s North Sea Port region, we have access to an ecosystem that contains petrochemicals, chemicals, power and agro-food sectors, which is a pretty rare constellation. Then, the plant itself has a fantastic layout and is capable of making steel from A to Z - from coal and ore through to finished products. “The real beauty is that the whole material flow of our supply chain is extremely wellbalanced,” he continues. “That means we always have exactly the right amount of coke and sinter capacity to feed a blast furnace. TIALOC BELGIUM
Then, the blast furnaces produce the perfect amount of hot metal needed to make slabs and steel. Nothing is wasted, and that makes us very energy efficient. “In terms of transport cost, yield, service, and quality, everything is well-planned. When you top that with our proximity to the University of Gent, which provides us with excellent engineers, you are looking at a plant with a culture and knowledge that is unrivalled.” Undeniably, the capabilities of its plant and the strength of its workforce have combined in recent times to ensure that ArcelorMittal Belgium remains a revered part of the industry.
At Tialoc Belgium, we are very proud to support ArcelorMittal Belgium in the Torero project at their site of Ghent, Belgium. Thanks to our inhouse – and full range of engineering capabilities, we were able to support ArcelorMittal in the basic engineering phase to find the best available technology for the torgas combustor. Our basic engineering project in close cooperation with the ArcelorMittal team resulted in a state-of-the-art installation that will result in emissions that are well below the environmental requirements and maximise the thermal efficiency. Our basis engineering project and the design of this tailormade combustor installation, gave ArcelorMittal the confidence to proceed with Tialoc Belgium for the detailed engineering and EPC project. In close teamwork with the ArcelorMittal Belgium team, we plan to have this state-of-the-art installation up and running before the end of 2022. For more information, please contact Hans Hooyberghs, General Manager Tialoc Belgium, Hans.hooyberghs@eu.tialocgroup.com.
26
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
ARCELORMITTAL BELGIUM
Producing more than 5.5 million tons of steel annually - more than the entire yearly consumption of Belgium and Luxembourg – the company’s Gent site is so deeply integrated that it can now produce its own electricity with the waste gases from its steel processing. “Our recycling efforts involve selling our site’s byproducts to other industries that need them,” Manfred points out. “For example, one byproduct of our blast furnaces is slag. Along with 5.5 million tons of steel, we make 1.3 million tons of slag, which is used by the cement sector. Of course, the integrated nature of our plant means a lot of these byproducts can be used in-house, which lends, once again, to our self-sufficiency.” ArcelorMittal will convert Gent’s Blast Furnace A into a DRI facility running off hydrogen as the reductant rather than carbon. Working closely with the Belgian government and Flanders Authority, both of which have
28
ENERGY,OIL&GAS
energy-oil-gas.com
helped with funding, the business is investing $1.1 billion into this facility. Early in 2021, Blast Furnace B saw the beginnings of a €195 million relining project to better accommodate the use of waste wood and plastic instead of coal (smart carbon pathway). “Due to our tradition of energy efficiency (even before our new technology, we were among the best in the world in terms of CO2 emissions and energy usage) we have always looked for ways to make more with less, reinventing ourselves when it comes to our energy footprint,” Manfred declares. “It really is part of our DNA. “It was 2011 when we started to think WORLEY
Worley engineered the Steelanol project with ArcelorMittal and Lanzatech. As one of ArcelorMittal’s partners, Worley translated Lanzatech’s technology into an industrial design. Worley explored options and determined an optimum cost versus yield of the installation. Its process engineers worked with Lanzatech on the overall heat and material balance of the plant. Worley adopted sustainable water management and optimized the plant’s overall energy integration. The design’s minimum plot space also reduced the carbon footprint further. Worley installed a virtual reality set to provide a detailed overview of the plant and see how maintenance activities could be done once operational. It also helped develop functional specifications, operations manuals and operator training programs.
30
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
ARCELORMITTAL BELGIUM
about what we now call carbon capture and utilization (CCU). We started on waste with the use of blast furnace gas and industrial gas, creating new products with the carbon held within. After that, we teamed with LanzaTech, developing our technology and transforming industrial gases, via a fermentation process, into bioethanol. It took us some time, but we are now working on plans to implement this and other CCU related technologies.” Continuing in this manner, in 2022, ArcelorMittal will commission its Steelanol Project. The first of its kind, the venture will see the construction of a €184m bioreactor plant to convert carbon-rich waste gases to bioethanol. Set to be commissioned in the REAL CORPORATION
Founded in 1974 and recognized with VCA-P certificate and EN1090 certificate, Real Corporation succeeds in executing complex and extensive steel structures for many renowned companies. With +30 years of experience in process installations in the metallurgy, chemical and petrochemical sector, we offer our services and experience in new sectors such as CO2 reduction and renewable energies. Thanks to the selection of specialized employees, permanent investments and high safety standards, we are ready for the value-added steel structures of the future. We were honoured that C-shift partnered with Real for the detailed engineering, production and assembly of all steel structures for the entire Steelanol and Torero installation.
ENERGY,OIL&GAS
energy-oil-gas.com
31
third quarter of 2022, the site will produce 80 million liters of sustainable ethanol for use in transport and chemical production. “The beauty of the Steelanol Project is that ethanol is not only a fuel that can be used for vehicles and the like, but it is also an important feedstock for the whole chemical industry,” Manfred reports. “Ethanol can be transformed into ethylene and ethylene is a basic component for the chemical sector. I think it’s vital for us to help lead the way in connecting basic industries by using byproducts of one sector as feedstocks in other sectors. That is our passion and that is part of the Smart Carbon strategy we are developing. “Our next step now is to re-use end of life chemicals as raw material in chemical ALGEMEEN METAAL CONSTRUCTIEBEDRIJF (AMC)
processes. Six-hundred million tons of chemical products are being made every year that are essentially combinations of carbon and hydrogen. At the same time, 1.9 billion tons of steel produced in a year creates carbon as a byproduct. The best part is that the carbon byproduct the steel industry produces matches with the carbon that the chemical sector needs to make its products. By coming together and sharing these resources between sectors, we are not only furthering our circular, Smart Carbon mission, but also helping to solve climate, CO2 and waste challenges.” Another core element of ArcelorMittal’s journey towards better sustainability in Belgium is the Torero Project. A €50m demonstration plant converting waste wood to
ArcelorMittal and AMC have already a long history of projects together. This allows ArcelorMittal Ghent to rely on AMC as a solid and experienced steel construction partner with a broad specialization. Especially for large projects like Steelanol, AMC experiences the advantages of its large production facilities in Belgium and Germany (each 10,000 m²). Together with the experienced engineering department, project managers and assemblers on site, AMC possesses the right fundaments in order to realize these type of projects.
32
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
ARCELORMITTAL BELGIUM
bio-coal for injection into Blast Furnace B, the project is due to be operational by the first quarter of 2023. “The Torero Project sees us replace fossil carbon with end-of-life wood waste that is torrified as a pre-process,” Manfred notes. “This is then transformed into bio-coal to be injected into the blast furnace. It’s a nice illustration of circularity and fits side-by-side with Steelanol. “In short, Steelanol is an example of the output of the circularity process, where CO present in the siderurgical gas is transformed into new products. Torero, on the other hand, is a great example of the input part of the process. Both, ultimately, are contributing to the reduction of CO2 emissions, and both are strong examples of our Smart Carbon pathway.” With an eye to the future, and on top of its seemingly endless collection of new projects, ArcelorMittal Belgium is now turning its attentions to the long-term health of its site. Headlining these objectives is a plan to create a ‘Green Valley’on 150 hectares of land in Rodenhuize North. ArcelorMittal Gent currently has ten wind turbines; six new wind turbines are under construction and will be operational by mid-2022. Once in place, Green Valley hopes to establish close partnerships with local industries, using their waste to enhance regional circularity. “At present, we have a 150-hectare piece of land not in use and we are going to use that for the production of ethanol,” Manfred confirms. “More than this though, we want to make other base components for the chemical sector, like methanol. “If we combine CO2, which we have in pure form available at our site, with hydrogen - preferably green hydrogen - then we can make methanol. This process not only reduces our CO2 footprint, but helps create a vital element of chemical sector feedstock. “As we enter 2022, we are looking more and more at developing the next generation of processes. For example, we have studied the use of microbes to make isopropanol – another of the base components for the chemical industry,” he remarks. “We have great third-generation biofuels, including the Steelanol type of ethanol based on waste gases, and now the intention is to further develop ENERGY,OIL&GAS
energy-oil-gas.com
33
and rollout these kinds of technologies, fermentation processes, and base components for the chemical sector, as well as install here, in Gent, methanol production from CO2 and hydrogen.” With so much to work on, ArcelorMittal Belgium is set for a busy 2022 - a year that could transform the future of the organization and all those it deals with. Multi-tasking, Manfred argues, will be key. “It is important that, next year, we make progress on our various different paths in parallel,” he asserts. “Whether it is Smart Carbon, the production of ethanol, the launching of the next installations, or new capacities for fermentation processes, we’ve got lots to be getting on with. “As I mentioned, we want to complete engineering of the new installations that will replace our blast furnace A, as well as embracing hydrogen in the form of natural gas or pure hydrogen. The transformation of a base industry like steel towards a Smart Carbon facility will, and must, embrace electrification, hydrogen, CCS and CCU, and that is what we are trying to do in a very realistic and balanced way. “In a wider sense, we know that hydrogen is definitely going to be part of the future roadmap for society, but we also know that a lot of work has to be done to realize green hydrogen and green electricity. Starting
34
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
with natural gas, we are replacing a lot of carbon with hydrogen, and in making our installations hydrogen-ready, we can incorporate green hydrogen into our processes when that time arises. Even now, while that technology evolves, our hydrogen-ready facilities are already drastically reducing our CO2 footprint.” Determined to see the company’s vision through, Manfred is excited about the future of steelmaking at ArcelorMittal as the firm looks to take the lead at the center of a circular, CO2-free society. Without a doubt, there is a paradigm shift in action, and ArcelorMittal Belgium is an influential part of it. “We have secured a position at the center
ARCELORMITTAL BELGIUM
of a circular ecosystem and we hope that, from this platform, we can not only play a role in Europe’s future, but a leading role in the future of the world when it comes to sustainable working,” Manfred states. “I think it’s important to work with the resources you have and that’s what we are trying to do. Yes, we could use hydrogen from solar energy in the desert, but by doing that, we would not be taking advantage of the strengths we have in our own region. In Europe, and here in Belgium, we have lots of waste that can serve as a raw material. We also have lots of knowledge. By combining these things, and by leveraging our strengths, we can work in better, cleaner ways for good.”
FLUENCE CORPORATION
Fluence Italy is proud to be partnering with ArcelorMittal Belgium on the innovative Steelanol project. Its wastewater treatment plant will collect and treat streams from the gas fermentation process to recover valuable nutrients, produce biogas from organic matter and reuse water cyclically. By producing green energy, the plant will contribute to transforming steel production into a carbon-neutral sector. Fluence is a champion in transforming waste into precious resources. Just ask its hundreds of references in the food and beverage, paper, and biochemical sectors. When it came to the Steelanol project, its experts approached this exciting new challenge with a customized solution, typical of Fluence Italy attitude. Turn your waste into a resource with Fluence!
ArcelorMittal Belgium belgium.arcelormittal.com ......................................... Services: Steelmaker
ENERGY,OIL&GAS
energy-oil-gas.com
35
Leading solutions
Boustead International Heaters is a company with a global reach and enviable track record of delivering a diverse portfolio of products and services to all corners of the world
Alongside some of its longest serving staff members, Boustead International Heaters (BIH) started in the 1960s as the European arm of an American fired heater company. In 1997, it was taken over by Boustead Singapore Limited (BSL), and the current brand was launched. Recognized as the oldest engineering company listed on the Singapore Stock Exchange with a 193-year history, BIH
36
ENERGY,OIL&GAS
energy-oil-gas.com
has learnt from its parent company and maintained its core skill base to satisfy its growing clientele and forge strong links with a global supply network. Now, the company is focused on supplying thermal heat transfer equipment to the world’s energy and industrial markets. BIH designs, builds and installs bespoke equipment to meet exacting client standards and solve extreme
PROFILE
engineering challenges. Stuart Cummings, the company’s CEO, shares with us how BIH’s wide-ranging process equipment experience stems from traditional oil and gas-fired heater applications, and how the company is determined to revolutionize the energy industry. “We supply all the global majors either directly or via a broad spectrum of EPC contractors; BIH has an unrivalled reference list and holds approved supplier status with over 50 prestigious clients. BIH evolved its product offering over the last decade to include waste heat recovery units (WHRUs), which capture otherwise wasted exhaust gases and convert
BOUSTEAD INTERNATIONAL HEATERS
them into useable energy, and therefore reduces the carbon footprint of operations utilizing gas turbines,” says Stuart. In addition to the recovery units, the business’ spectrum of system solutions ranges from fired heaters, heat recovery steam generators, once through steam generators, Selective Catalytic Reduction and ancillary products and services. To make this possible, it relies on the dedication of its widespread team, with headquarters in the UK and another base in Malaysia. “BIH employs a workforce of around 100 people who have delivered more than 1000 thermal heat transfer systems on over 250 projects delivered to more than 30 countries across every continent,” says Stuart. “Design requirements ranging from the extremes of desert-based sites to offshore facilities and permafrost locations represent numerous technical challenges in terms of metallurgy expansion, fatigue and operability. Fortunately, all of these fall under BIH expertise and we have the knowhow and experience to address these issues effectively. It is this flexibility, innovation and agility to scale the required resource for any given project that has contributed to BIH’s market leading position and has helped us to maintain our longstanding relationship and reputation with all our customers,” he shares. As Stuart acknowledges, the company’s name has become synonymous with technical problemsolving capability, responsive customer service, dynamic project execution and superior quality and health and safety standards, all of which have contributed to its ample repeat business. “Our financial strength as a standalone entity is a combined effort of unwavering support from our listed parent company and client confidence. This allows us to weather the toughest storms and be dependable for through-life support of their assets offering consistency of support and retained knowledge base. “We have also become a leader in setting and raising the standards for the industry, leading and serving on several panels within the API (American Petroleum Institute) and ISO (International Standards Organization),” he adds. Since the recent COP26 meeting, in which world leaders gathered to implement strategies to achieve net zero, BIH has also increasingly recognized the demand for decarbonization solutions. “Through discussions and collaboration with our customers, BIH has led the charge to develop techniques, technologies and solutions to meet tighter regulatory controls on emissions. For example, ongoing improvements in NOX and CO2 emission controls requiring
BIH recognise the importance of the industrial sector shifting to greener, more sustainable energy sources and is already supplying plantcritical equipment for use with Hydrogen as an alternative to natural gas. These are unprecedented challenges, but BIH is well positioned to support stakeholders in achieving their objectives through the development of our innovative products, dynamism of our staff and collaborative business approach
ENERGY,OIL&GAS
energy-oil-gas.com
37
advanced combustion equipment design and post-combustion catalysts, targeting ever increasing fuel efficiency, and eliminating oil firing in all new fired heaters globally. “In addition to this, the fired heater market has seen a shift in the customer base from traditional oil refining to gas-derived products manufacture such as petrochemicals and LNG production. The waste heat recovery unit market has seen similar trends; the application of combined cycle gas turbines (CCGT) to maximize fuel efficiency
FRAZER-NASH
(both on and offshore) and the introduction of post combustion emissions controls. BIH’s global installed base of WHRUs are estimated to have recovered more than 150 terawatt-hours (TWh) of energy.” Stuart takes a moment to acknowledge that BIH’s success would not be possible without its hard-working staff who have kept the wheels turning smoothly. The company boasts an entrepreneurial culture that provides an open-minded and adaptable approach to the constant change in market conditions. “Our organization is actively working closely with our global customers to develop high-tech valueadded solutions in renewable fuel, hydrogen production, waste heat to power applications and the decarbonization and efficiency
Gas turbine exhaust duct systems frequently cause failure in offshore power systems, with the harsh operating conditions leading to downtime due to integrity issues. Frazer-Nash Consultancy has collaborated with Boustead International Heaters for over a decade, by introducing advanced engineering analysis into its system design. This front-loading process helps assure design against future failure from threats, including FIV, thermal transients and blast. Based on their experience, Boustead and Frazer-Nash have transferred these learnings to industry, as part of the ETN’s Exhaust Systems Group. This, in turn, led to the drafting of best practices which have become the basis of ISO 21905:2020.
38
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
BOUSTEAD INTERNATIONAL HEATERS
improvements of existing installed equipment.” This is why, despite the global slowdown initiated by the widespread lockdowns and associated industrial hiatus, BIH was fortunate enough to have a healthy order backlog to weather the storm. “With employee health and wellbeing at the top of the agenda, BIH had invested significantly in remote working technologies in advance of the pandemic as part of our risk management strategy, and as such were able to transition seamlessly to a remote working model. “Some of our largest contract awards of 2020 were negotiated and concluded entirely remotely, which is a credit to all parties involved. Despite having work fronts in over 22 countries, BIH project execution was largely unaffected and we
INTERTEK
Intertek Surveying Services congratulates Boustead on their anniversary. Intertek provides high precision 3D Laser Scanning to capture as-built data from the field, fully to scale and aligned with the local site coordinate system. Intertek can deliver in all scan formats as well as 2D/3D CAD conversion for integration with your back-office software or cloud solutions for hosting this 3D data in collaborative environments. Intertek has workflows for Design Phase, Like/Kind Replacement, Digital Twin Asset Records, Fabrication Dimensional Control verification and Integration Assurance for Offshore Platforms and Floaters, Modules, Equipment Packages and Piping Hook-Up Spools. The verification and assurance contributes to safe, first-time fit, therefore saving time and money, which allows Boustead, like all of Intertek’s clients, to meet their schedules and budgets.
ENERGY,OIL&GAS
energy-oil-gas.com
39
worked constructively with our supply chain and clients to overcome difficulties encountered, resulting in all projects being delivered on time. Our teams were versatile, flexible and resilient, adjusting work patterns to suit project requirements, accepting quarantine demands when visiting clients and sites when necessary and developing new procedures to overcome
DAMPER TECHNOLOGY
Damper Technology Ltd have provided specialist process flow solutions for extreme operating conditions in multiple sectors for over 20 years. DTL are proud to have been supporting Boustead with dampers for heat recovery applications installed in Offshore, Arctic and Desert facilities since 2005.
40
ENERGY,OIL&GAS
energy-oil-gas.com
the restrictions created by the pandemic and associated lockdowns,” he shares. In addition to the pandemic, the company also had to square-off with the consequences of Brexit. “The majority of BIH’s activities are outside of Europe. However, at the time Brexit was introduced, we had three live projects in the region, which were delivered successfully.
PROFILE
BOUSTEAD INTERNATIONAL HEATERS
As the world continues to face an increase in pressure for greener strategies, BIH is optimistic about its efforts and is keen to lead the energy industry with its best practices. “BIH recognize the importance of the industrial sector shifting to greener, more sustainable energy sources and is already supplying plantcritical equipment for use with Hydrogen as an alternative to natural gas. “These are unprecedented challenges, but BIH is well positioned to support stakeholders in achieving their objectives through the development of our innovative products, dynamism of our staff and collaborative business approach,” Stuart concludes.
Stuart Cummings, CEO of Boustead International Heaters
ZEECO
Founded in 1979, Zeeco has steadily become the world leader in the design and manufacture of advanced combustion and environmental solutions. Zeeco has been a proud partner of BIHL for many years, employing decades of combustion industry expertise to design, engineer, and deliver state-of-the-art, ultra-low-NOx burners for BIH heaters and boilers. The result is a mutually beneficial relationship between Zeeco and BIH, strengthened by the shared desire to provide innovative, end-toend solutions to global customers.
Boustead International Heaters www.bihl.com/about-us ......................................... Services: Thermal Process and Heat Recovery Solutions
BIH is adept at working across diverse international jurisdictions and therefore approached the Brexit challenge like any other international project. “On the Quality Assurance side, BIH acted rapidly to achieve certification for the UK-versions (UKCA) of applicable pre-Brexit EU regulations such as PED, EN1090 in addition to our internationally recognized approvals for ISO 9001, 14001, 45001 and ISO/TS 29001. Indirect impacts from Brexit, which included increased currency volatility, were more immediate and noticeable, but nevertheless manageable through existing procedures and facilities,” Stuart says, adding that BIH has continued to receive orders from new and existing EU customers and is committed to serving this essential market through a particularly dynamic time. Impressively, above these achievements, the company is also driving the move to sustainability. “BIH has been collaborating and undertaking detailed studies for customers globally to explore feasibility and develop scope of works for a broad range of solutions targeted to decarbonize new and existing installations alike. Some of these areas include on and off-shore combined cycle gas turbines, oxycombustions, hydrogen firing, and Waste Heat to Power solutions in new industrial sectors,” he expresses. ENERGY,OIL&GAS
energy-oil-gas.com
41
Energy potential Edina has continued to provide for its customers without fail, and is looking forward to a future of serving sustainable solutions to the international energy industry
Owned by EnergyPro Assets Limited (EPAL), Edina is a joint venture between Energy Efficiency Services Limited (EESL), the world’s largest Energy Service Company under the Government of India, and EnergyPro Ltd, a leading UK-based advisory company that consults on energy efficiency projects. Since its inception over 35 years ago, Edina has focused on evolving with the changes
42
ENERGY,OIL&GAS
energy-oil-gas.com
of the energy industry. Accordingly, the company has become a leader in the engineering, installation, and after-care support of low carbon, gas-fired, Combined Heat and Power (CHP) and Flexible Generation plants. Employing over 200 people across its operations in the UK, Ireland, Australia, and India, Edina collectively manages a growing portfolio of nearly one gigawatts of electrical distributed generation.
PROFILE
Hugh Richmond
We speak with Hugh Richmond, Edina’s Chief Executive Officer, who tells us more about the ways in which the company has maintained its expertise in the energy business, despite the continuous changes. “There is no such thing as a ‘one shoe fits all’ nowadays; you have to have the ability to move with the times,” he begins, a statement that he attributes to Edina’s success. Edina began trading in 1985, when it initially
EDINA
supplied and maintained diesel generation plants in Dublin, Ireland. Edina then looked towards the expanding UK gas engine market, and in 2006 it established its UK presence and was awarded the official UK and Ireland distributorship of world-renowned MWM gas engines. “Many incentives were put in place to extract gas out of landfills, and turn it into power, so Edina started to get involved in the biogas business,” Hugh continues. “In 2010, there was an upsurge from the government to move towards renewable energy through the introduction of low carbon CHP plants. At the time, power generation was typically large, centralised coal fired and nuclear plants, and CHP opened the door for businesses to produce and consume heat and electricity at a decentralised level. In doing so, CHP became an energy efficient way of producing heat and electricity from a single fuel source with significant efficiency gains of up to 90 percent. Transmission losses were also reduced due to the proximity of generation and consumption, and our customers reported significant primary energy cost savings of around 30 percent. In this way, CHP remains an ideal technology for energy users with high heat and electricity demands such as hospitals, commercial buildings, and the industrial manufacturing sectors. “As renewable technologies gathered pace and predictable baseload power stations curtailed within the UK energy mix, it become clear that gas-fired power stations would play a critical role in shaping and balancing the energy landscape. This meant industry would favour smaller decentralised gas power stations across the country instead of large-scale centralised 1000-megawatt plants. We followed suit, and consequently became successful in what is known as the Flexible Generation market, which provides standby low carbon electricity during peak demand and when there are shortages of power supply due to the intermittency of renewable generation. Aside from maintaining security of power supply, our flexible generation plants accelerate the growth of additional renewable technologies onto the network. To date we have over 550 megawatts of plant, spanning over 40 projects within this market.” Following this, and as recently as 12 months ago, the industry began to look more seriously at battery technology, in a bid to encourage decarbonised power usages. “Edina’s core business remains in the gas engine market; however, we recognise the importance and benefit of other technology applications and diversification it has brought to the business ENERGY,OIL&GAS
energy-oil-gas.com
43
PROFILE
EDINA
and our customers. We have an interest in battery energy storage and recently partnered with global battery energy storage and inverter technology manufacturers. Our aim is to provide and offer our customers an engineered storage solution either as a standalone product or collocated with gas engines as part of a hybrid power solution, which we’ll be able to share details on request through www.edina.eu,” Hugh expresses. Having covered the expansive history that has brought Edina the success it enjoys today, Hugh tells us more about the facilities that support Edina’s capabilities. “What we do is create energy centres that can support the intake of gas engine technology ranging from 0.4 megawatts through to 4.5 megawatts. Each project is different depending on the client requirement. We offer a single or multi-engine configuration delivered as supply only or a full turnkey Engineering, Procurement, and Construction (EPC) contract. We may package the gas engine within a containerised enclosure which accommodates
ambient and heat temperatures, as well as noise attenuation. We design and build our own control panel system which communicates directly with the MWM engine and assists our engineers to control the entire on-site eco-system and synchronise with the grid. “Once the engine asset is delivered to site, we then install all supporting equipment to include pumps, radiators, silencers, and transformers, needed to generate and realise the on-site power solution for the client. We are a customer driven business and support our customers throughout the life of the power project from initial design, plant engineering, project management, plant commissioning and ongoing 24/7 asset-care, all of which is delivered by Edina - a single point of contact for our customers, which I think is something that separates us from our competition. Our new battery energy storage solution works in a similar way. We will containerise the batteries and install the inverters, the transformers and control systems, and they function just as successfully. Above
SWITCHGEAR SUPPORT LIMITED / TAVRIDA ELECTRIC: PARTNERING EXCELLENCE IN ENGINEERING
Switchgear Support Limited are delighted to partner with Tavrida Electric for the UK Switchgear market; expertise, experience and excellence in engineering powerfully connect the companies to be able to deliver highly successful medium voltage projects to the UK power industry. Tavrida Electric develops and manufactures a range of innovative vacuum switching equipment and smart switchgear solutions for indoor and outdoor applications world-wide. Supplying over 50,000 breakers per year and projects in over 80 countries provides them with a scale and breadth of technical and industry knowledge that is seeing them flourish year on year. With steady growth they have focused on robust design features providing extremely high reliability and future proof functionality that are increasingly popular with users. With over 40 years UK and International switchgear industry experience, Switchgear Support offer customers excellence in project design, delivery and support. Building on 20 successfully delivered Tavrida projects in the last three years, we are in an ideal position to provide an unbeatable partnership for your strategic projects.
44
ENERGY,OIL&GAS
energy-oil-gas.com
SWITCHGEAR FULL PAGE
all, Edina is a solutions provider for distributed power generation and our infrastructure is geared towards supporting that vision.” From what Hugh has shared, it is clear that the company is passionate about evolving with the changing demands of the energy industry. The motivation, Hugh shares, stems from customer needs. “Because the big focus right now is sustainability, how do businesses navigate that trajectory? We recognise for many businesses achieving net-zero will involve a multitude of technologies depending on their requirements. CHP will continue to play a vital role in achieving carbon neutrality in some applications either using existing transitionary low carbon natural gas or hydrogen, for when it becomes commercially available. As such, we are working closely with our partners MWM to deliver a 100 percent hydrogen ready gas engine solution. Like CHP, Battery Energy Storage will play a significant role in the energy transition given its application uses and we are excited to include this offering within our product portfolio.” Sustaining the company’s journey would not be possible without the help of a dedicated and motivated team, of which Hugh is incredibly proud. He notes how he was able to keep his entire staff on board during the turbulence of Covid-19 and is grateful for the effort and spirit everyone has demonstrated over the last two years. “No one was furloughed because we were considered an essential service. That’s not to say that it wasn’t an easy time either; we have had our fair share of obstacles. We recently adopted a hybrid working system for those who can work from home. Although this is something that we have become well acquainted with, I feel that much of our innovation is gained from in-person meetings and conversations. “The other challenge is training. The UK is suffering hugely from a brain drain at the moment, and a lack of responses to apprenticeships and apprenticeship schemes. We need to encourage more young people to get involved in the mechanical and electrical industry. We also have to look after our staff and try to work with them as closely as possible in order to retain them, and I’m sure that this is an issue with many businesses, so we need to work together to change that,” Hugh shares. Despite these industry challenges, Hugh recognises that as long as everyone continues to do their best, the solutions will fall into place given time. “I can see that there are more and more opportunities being implemented to encourage younger generations to join our
46
ENERGY,OIL&GAS
energy-oil-gas.com
PROFILE
industry, and that’s the right attitude. Not everyone has the desire to go to university, some people are naturally inclined to pick up a spanner or screwdriver, and those are the people we should be supporting. I’d like to see some of the schools actively engage in the industry to encourage young boys and girls to go into fixing engines and doing what the UK is incredibly good at, so that when the older generations retire, there won’t be a skills gap in our industry.” Hugh remains ever optimistic about the future of Edina. Looking further ahead, he is excited to see the company continue to grow, evolve, and support the energy industry with the company’s refined expertise. “Overall, I would very much love to see us move into SAUER COMPRESSORS UK LTD
EDINA
markets where we currently do not have a footing yet. Because of our links with EESL in India, we have the opportunity to expand and take Edina beyond the shores of the UK. Edina does have a small Engineering operation in Australia and with EESL’s assistance we hope to expand this further. I’ve had the good fortune in my career to have worked all over the world, and I know there are fantastic opportunities for us, which is why I would like to see Edina take a more international role to share our solutions with other countries. “Aside from that, we are going to keep doing what we’re doing, and continue to do it well. I believe that there is still a huge amount of untapped potential in this business, and I’m excited to see it grow,” Hugh concludes.
Dependable up to 500 bar – anywhere, anytime, any gas Sauer Compressors UK Ltd is part of a worldwide group of companies offering medium and high-pressure air and gas solutions for the energy and industrial sectors. Working closely with Edina since 2014 we are proud of our long-standing working relationship in providing up-front technical support through to design, build, on-site testing and commissioning of bespoke packages. We look forward to working with Edina to provide customized solutions for new engine start & CHP projects, including the transition to greener technologies and processes by offering our extensive range covering oil free, gas tight and ATEX developments for air and gas compression in the range covering 20 to 500 barg.
Edina www.edina.eu ......................................... Services: Combined heat and power plants specialist, gas engines, and battery energy storage
ENERGY,OIL&GAS
energy-oil-gas.com
47
Incorporating
Increase your visibility with a Bespoke Exclusive Feature
Prepared by our in-house writing & design teams, the Exclusive Feature will appear in the digital and printed version of the magazine.
Further value can be added through the creation of printed, hard-copy brochures, a digital flip book (provided as a link for you to share) PLUS the Exclusive Feature as both High and Low resolution PDF files and an e-blast to the magazine’s digital subscriber database. Your Exclusive Feature will be automatically included on the magazine’s website, with the option of a top of the screen leader board ad for your company that links directly back to your own site, guiding the readership to your company information.
Solutions for a more sustainable future
You can also create your own ‘As Featured In’ link on your website that connects directly to the story, making it easier for you to share the article online, and reach customers across the globe via online search and advertising opportunities. Bespoke article written for you – PLUS options for online advertising, printed brochures, digital flip book, high/low resolution PDF, and e-blasts to approx. 130,000 digital subscribers. For more information please contact Alasdair Gamble at: agamble@schofieldpublishing.com or call +1 312 625 8723 / +44 (0)1603 274144