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Issue 185 October

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energy-oil-gas.com

Incorporating

Pioneering

production

RAPIDLY INCREASING DEMAND IN LBG FUELS FOR HEAVY ROAD TRANSPORT AND GREEN SHIPPING IS DRIVING GROWTH FOR BIOFUELS VIRTUOSO BIOKRAFT

Cleaner air

An estimated 28,000 trucks are involved in global mining operations, leading to a need to reduce both fuel consumption and emissions in the sector

Time for talent

Facing recruitment challenges, energy companies need to consider investing in future talent in the subject areas of Science, Technology, Engineering and Maths

First for UK: Vattenfall Network Solutions launches Power as a Service Net zero goals: bp and Microsoft Corp collaborate as strategic partners


EDITOR Editors Chairman Andrew Schofield Managing Director Joe Woolsgrove Editor Libbie Hammond - libbie@schofieldpublishing.com Assistant Editor Will Daynes Staff Writer Alex McDonald

The ambition for the UK to become ‘the world leader in clean wind energy’ is certainly admirable and the plan to create 2000 jobs in construction and support 60,000 more is obviously welcome, given the challenges that Covid-19 is bringing to employment

Art Editor Fleur Daniels Advertising Designer Rebecca Side Operations Director Philip Monument Operations Manager Natalie Griffiths Sales Director Alasdair Gamble Sales Mark Cawston Alex Hartley Dave King Theresa McDonald Sam Surrell Web Sales web@schofieldpublishing.com Research Managers Ben Richell Kieran Shukri Editorial Researchers Mark Cowles Wendy Russell Richard Saunders Digital Subscriptions Iain Kidd - digital @schofieldpublishing.com

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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.

Lightbulb moment? So, what is your reaction to Prime Minister Boris Johnson’s pledge that offshore wind farms will generate enough electricity to power every home in the UK within a decade? The ambition for the UK to become ‘the world leader in clean wind energy’ is certainly admirable and the plan to create 2000 jobs in construction and support 60,000 more is obviously welcome, given the challenges that Covid-19 is bringing to employment. Greenpeace welcomed the announcement as a ‘light bulb moment’ but Greenpeace UK executive director John Sauven asserted that: “We now need to see the Prime Minister’s newly-found enthusiasm is followed through by knocking down all the barriers that the offshore wind industry faces in delivering its ambition.” Jorge Pikunic, Managing Director of Centrica Business Solutions, stated that it ‘will only be possible if we re-think the way energy is generated, distributed and stored so that we can better manage the peaks and troughs associated with renewable generation.’ The responses and comments I have seen regarding this pledge have been broadly positive and welcoming – let’s just hope we see some action rather than just words.

EDITOR LIBBIE HAMMOND ENERGY,OIL&GAS

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REGULARS

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BioLPG

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STEM

With £100m being invested in bioLPG across the UK, further opportunities are opening up to reap the benefits of this fuel option

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Why oil and gas, and other industries, need to invest in Science, Technology, Engineering and Maths (STEM) talent, now more than ever

12 Oil sands

bioLPG

16 Mining

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The future of Canada’s oil sands industry is changing as it collaborates on environmental challenges and develops new technologies

A surprisingly large amount of a mine’s energy use is associated with the dump and haulage trucks used on site

18 Ground source heat pumps

Simon Lomax of the Kensa Group argues why he thinks mass deployment of GSHPs is the optimum strategy for the future

22 News

FirstLight Power, Inc.

24 Market Outlook

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Some of the recent developments within the oil and gas industry

Professor of Global Energy Michael Bradshaw analyses the oil and gas sector and the arrival of a ‘new energy age’

28 Wind Power

A tool has been developed that can compute and visualize the financial feasibility of fixed and floating offshore wind sites in UK waters

32 Drilling

If you are thinking of hiring a drilling rig, there are a number of considerations that can affect your choice of equipment

34 Mining

Yinson Holdings Berhad

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A look at Ecuador’s mining industry – the country’s resources sector is currently in the strongest position in its history

38 Flange Management

Flange management is a niche area but one where a more sophisticated approach has moved rapidly in the last three years

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ZAP Engineering and Construction Services


PROFILES

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Biokraft AS

Raffineria di Milazzo

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Navigator Terminals UK Limited

Downhole Chemical Solutions

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96

Phillips 66 – Borger Refinery

Clearwater Gas System

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Cadent Gas Ltd

MIST Inc.

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Fuelling

tomorrow

WHY BIOLPG IS AN OPPORTUNITY NOT TO BE MISSED IN A GREEN RECOVERY. BY GEORGE WEBB

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his is a time of unprecedented uncertainty for much of the energy sector. Earlier this year, the International Energy Agency found that global energy demand declined by 3.8 per cent in the first quarter of 2020 alone and is expected to fall by six per cent throughout the year, wiping off the last five years of growth, the fastest decline in 70 years. However, amidst this market turmoil, renewables were the only source that posted a growth in demand. In 2019, biofuel production alone expanded six per cent year-on-year. This presents a huge

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opportunity for bioLPG, a renewable heating fuel, which is able to capitalize off the back of growing demand for LPG. Liquid Gas UK’s first ever LPG census found that the LPG industry is expected to grow over the next five years, boosted by over £100m being invested in bioLPG.

So, what is bioLPG and what is the reason behind the expected growth? One of the reasons behind bioLPG’s expected success is because of the growth of its ‘parent’ fuel, LPG. LPG is


BIOLPG

already a popular, low-carbon solution for heating off-grid homes and businesses, as well as fuelling processes across a number of sectors including agriculture, construction, leisure and hospitality and industrial processing. There are immediate benefits from installing LPG today; it emits 33 per cent less carbon emissions than coal and 20 per cent less than oil. Clean-burning and smoke-free, it also emits lower levels of NOx, SOx and Particulate Matter compared to other available fuel sources. It’s flexible, with uses including space heating, hot water, cooking and process heating. Like

renewables, the UK LPG industry is seeing growth despite the threats posed to the economy by Covid-19 and Brexit, with 86 per cent LPG suppliers still expecting to grow over the next 12 months. BioLPG goes even further on the carbon front, emitting 90 per cent less carbon compared to conventional LPG. The beauty of bioLPG is that it’s also a ‘drop in’ solution that can be used in all the existing infrastructure and equipment in homes and businesses. With homeowners and businesses switching to LPG, the path to the cleaner bioLPG is an

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easy one. The fuel also has the added benefit that it can be blended with LPG, which enables a seamless transition to a renewable fuel. While the focus for many policy makers is to decarbonize mainstream energy networks, bioLPG will have a crucial role to play in decarbonizing the off-grid homes and businesses. These properties all utilize fuels such as LPG, oil and coal to generate heating and hot water. Many of the over two million off-grid homes across the UK are old historic buildings that are hard to heat due to the lack of insulation. The significant majority of them (1.1 million) are currently using oil, a high polluting fuel. With this in mind, the Government’s Clean Heat Grant, starting in August 2020, is missing a trick by focusing all its attention on heat pumps. Particularly as research undertaken

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by Ecuity Consulting, on behalf of Liquid Gas UK, has shown that a mixed technology approach involving a mix of LPG/bioLPG and heat pumps to decarbonizing heating systems in off-grid homes in the UK would save over £7 billion, the equivalent of over £4,700 for homeowners.

Helping rural businesses hit net-zero BioLPG isn’t just a game changer for rural off-grid homes but has the potential to make thousands of businesses to achieve net-zero. The fuel has a number of applications across different industries such as industrial processes, transport, food and hospitality, fuel shipping, agriculture and even space travel. Indeed, according to the LPG census, the sectors of significant growth for LPG/bioLPG over the previous 12 months were domestic heating, leisure and recreation,


BIOLPG

hospitality and street food, and agriculture. Overall, the LPG/ bioLPG industry is worth over ÂŁ1 billion to the UK economy.

Green recovery potential The Covid-19 pandemic has led to a lot of talk about a green recovery. Already several governments around the world attached conditionality to bailout packages for high emitting industries. A good example of this was the French Government demanding that Air France cut its emissions by 50 per cent for domestic flights by 2024 in exchange for aid. Now we must see if these promises deliver. The world needs to turn to cleaner fuels and bioLPG has the potential to play a crucial role in this cleaner revolution. There is no doubt that significant investment is required across the UK and Europe to meet the future demand. In the

UK, we are already working towards that goal. Last year, the industry signed up to a commitment to switch completely to bioLPG by 2040, with many members already starting the process of investing in acquiring or producing bioLPG, as well as in improving industry infrastructure such as storage facilities. BioLPG is made from non-fossil fuel sources, mainly sourced from waste products from the renewable diesel production process such as the hydrotreated vegetable oil (HVO) process. With the array of feedstocks available for producing bioLPG, the future of processing means that we will have regionalized solutions that harness local fuel sources, as well as being a co-product from UK bio-refining. This means that production will become more affordable and scalable. This will enable industry to work with Government and devolved administrations to tailor solutions for particular regions or areas, strengthening future supply resilience for a fuel that is only likely to grow in demand. With ÂŁ100m being invested bioLPG across the UK, the industry has kick-started some of the investments needed. However, if the UK and the world are serious about a green recovery, then more must be done by governments to invest in bioLPG. The technology and fuel exist, and the environmental benefits are crystal clear, what must come next is a commitment from Government on its choice of technologies to back and investment. Supporting bioLPG would provide a clear pathway to cleaner technologies, building upon LPG and its existing infrastructure, which can be deployed in homes and business quickly and easily, opening the door towards a green recovery.

GEORGE WEBB George Webb is CEO of Liquid Gas UK, the voice of the Liquefied Petroleum Gas (LPG) and bioLPG industry in the UK. It has been providing support and representation to the LPG Industry since 1975. Its purpose is to champion the growth and sustainability of the UK LPG industry, influence government policy, keep members informed and promote safety. For further information please visit: www.liquidgasuk.org

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Time for

talent

KEVIN STENSON DISCUSSES WHY YOU SHOULD CONSIDER INVESTING IN FUTURE STEM TALENT TO SUPPORT THE NATION POST COVID-19

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hroughout the coronavirus pandemic, we have all witnessed the vital roles played by the STEM (Science, Technology, Engineering and Maths) industries in grappling with the ‘new normal’. Whether it’s scientists working in laboratories to develop new antibody testing technology and vaccine trials, or engineers teaming up with the military to build temporary Nightingale hospitals; it is clear that STEM workers have formed a crucial part of the UK’s response to Covid-19. Arguably, the continuing global health crisis has shone a much-needed light on the hidden role played by STEM industries in safeguarding the wellbeing of both the workforce and the national economy. The vital work carried out by NHS engineers, including tackling a nation-wide

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shortage of PPE for frontline staff as well as low supplies of ventilators for intensive care patients, has been instrumental in shaping the UK’s ability to treat as many patients as safely and effectively as possible. Despite playing a key part in tackling the crisis, STEM’s visibility problem has been well-documented over the years and is twofold: 1) roles in STEM are often perceived as too academic, narrow or not exciting enough, and 2) the lack of diversity in the sector fails to attract talented young people from a wide range of backgrounds. However, a recent survey conducted by The Institution of Engineering and Technology (IET) suggests viewpoints may be shifting, as more than half of children who participated reported feeling more inspired to pursue a career in STEM


STEM

in recent months. Fifty-two per cent of ten-18 year olds who took part in the survey are now considering a future job in engineering after seeing the heroic efforts made by STEM workers to swiftly build ventilators and convert buildings into hospitals during lockdown. So how can we continue to encourage young people to choose a career in STEM?

Accessibility for all – fostering diversity Whilst the IET survey results are heartening, it is important to keep in mind that the UK has the lowest percentage of female engineering professionals in Europe – with women forming just over 12 per cent of the country’s core workforce. With a deficit of two million people in UK engineering,

we simply cannot afford to be complacent any longer. We urgently need to fill these vacant roles, and to do this we will have to work to make STEM industries diverse by breaking down barriers and dispelling misconceptions around the sector. Delivering events, work experience and careers talks in both schools and universities is a key part of allowing students a real insight into the day-to-day life of an engineering professional and making the industry accessible for all. There is a wide range of scholarship programs available to pupils interested in pursuing a career in STEM, where some of the country’s brightest young people can pursue their dreams of changing the world through engineering and gain hands-on career experience. Programs like these

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also often provide targeted mentoring support and are a great boost to supplement university applications. We as an industry must continue to support programs that can act as a lifeline for children from underrepresented backgrounds and disadvantaged communities. Anoushka Patel, a recent recipient of The Arkwright Engineering Scholarship, used her funding to co-found the ‘Covid Challenge’ in order to encourage university students to create innovative tech solutions addressing the social and economic hardships stemming from the crisis. Attracting 230 applicants from universities across five continents, the winning project was an app designed to help people avoid more densely populated areas – and therefore reduce

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the likelihood of infection. Anoushka’s inspiring work is a brilliant example of the power of engineering and the importance of inspiring young talent. Female engineers like Anoushka will undoubtedly continue to pave the way to create prominent roles for women in the engineering workforce as well as combat gender stereotypes and bias.

Putting STEM into context and adapting to new challenges Whilst it goes without saying that the coronavirus pandemic has been a hugely distressing time for millions of people around the world, the crisis has also amplified the importance of STEM talent during such challenging periods.


STEM enabled young people to experience the positive impact of engineering and work on real-life challenges, all from the comfort of their own homes. Aimed at 13-14 year old students, the virtual course provided first-hand experiences of how the RAF supports the many challenges facing the world; from floods in the UK, to the Ebola outbreak in Africa, and devastating hurricanes in the Caribbean. Parents of participating students reported seeing increased levels of independence, motivation, and self-belief in their children, with many reporting that their child was now set on pursuing a career path in engineering.

Industry collaboration A fundamental element of investing in future STEM talent is collaboration between different industry companies and bodies. Continuing to establish positive relationships between organizations across the sector will benefit both young people setting out on new career paths – as well as the STEM industry itself. 2020 has certainly been a uniquely challenging year for everyone from all walks of life and career paths. However, I am hopeful that the talented people working across the STEM sectors will be able to navigate this new way of life through inclusivity, creativity, and most importantly of all, teamwork.

The visibility of STEM in daily life can often fly under the radar, so it has shone a light on the necessity of the industry and its workforce. Despite UK schools reopening in the first week of September for the first time since March, the possibility of local lockdowns or even a second wave of Covid-19 mean that we must remain adaptable and ready to deliver STEMbased learning in all contexts – whether this is through in-person teaching or via digital platforms. For example, The Royal Air Force rose to this new challenge through its provision of a virtual online course in ‘Humanitarian Aid Engineering Experience’, which replaced its usual face to face on-site training sessions. The course

KEVIN STENSON Kevin Stenson is CEO of The Smallpeice Trust, a children’s education charity which provides a range of STEM-based scholarships, programs and interactive days to get more young people from all backgrounds into engineering. These programs inspire and equip students with the skills to achieve their full potential in STEM, helping to create a more diverse and inclusive engineering workforce. To learn more about The Smallpeice Trust and their upcoming events and virtual courses, please visit https://www.smallpeicetrust.org.uk/

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Canada's

oil sands ENERGY FOR TODAY, INNOVATION FOR TOMORROW

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he world will need oil for a long time to come. Canada has a tremendous resource base and skilled people who develop this resource responsibly. Just as the oil sands industry is committed to growing its businesses, it is equally committed to improving environmental performance. The future of Canada’s oil sands industry is changing as it collaborates on environmental challenges, and develops technologies that reduce impacts on air, land and water. Innovation and technological advances will help Canada achieve its global environmental commitments and move toward a cleaner energy future. Oil sands operators know it, because they are working on tomorrow’s energy, today.

Oil Sands Basics Canada has the world’s third-largest oil reserves — 168 billion barrels, of which some 162 billion barrels are in oil sands deposits in Alberta.

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Oil sand is a natural mixture of sand, water and bitumen, which is oil that’s too heavy flow on its own. The first efforts to tap the oil sands resource began in the mid-20th century using hot water to separate bitumen from sand. Since then the process has evolved into today’s sophisticated extraction technologies. Bitumen is recovered using two main methods: surface mining and in situ (underground) development. Surface mining uses large shovels to scoop oil sand into haul trucks that transport it to crushers, where the oil sand is mixed with hot water and pumped by pipeline to an extraction plant where the bitumen is separated from the other components. The bitumen then moves to an upgrading process, while the remaining components are deposited in tailings ponds. Tailings ponds are common in all types of surface mining around the world. In the oil sands’ tailings ponds, sand and clay gradually settle to the bottom. Water is continuously


OIL SANDS

Fast Fact About 20 per cent of the resource lies within 70 meters (200 ft) of the surface and can be surface mined, while 80 per cent is deeper underground. The majority of oil sands production is from deep deposits

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Fast Fact Only about 0.03 per cent of Canada's boreal forest has been disturbed by oil sands mining

recycled from the tailings ponds back into the extraction process, reducing withdrawals of fresh water from rivers and other sources. Once a tailings pond is no longer needed, it is reclaimed. Several tailings ponds have been reclaimed as ponds and wetlands, while others are being used to research settling and reclamation technologies. As legally required, all lands disturbed by oil sands production will eventually be reclaimed to a self-sustaining state. Deep bitumen deposits are recovered using in situ technology, where bitumen is separated from the sand within the deposit itself. This is accomplished by heating the bitumen so it becomes fluid enough to be pumped to the surface. Currently, most in situ operations use steam-assisted gravity drainage (SAGD), which uses well pairs to recover bitumen. One well injects steam, while the production well — drilled deeper in the reservoir — pumps heated bitumen, condensed water and some sand to the surface. Multiple well pairs can be drilled from a single surface location (well pad), resulting is a much smaller surface footprint than surface mining.

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Once recovered, bitumen can be upgraded into products such as diesel, gasoline and aviation fuel. Alternatively, bitumen is diluted with a lighter hydrocarbon to further reduce viscosity, then shipped via pipelines to refineries in Canada and the U.S. to create fuels and consumer products ranging from crayons and cosmetics to contact lenses and medical devices.

Economic Benefits The oil sands industry is a major economic driver in Canada’s economy. In 2017, the industry alone provided $56 billion, or 2.9 per cent, of the country’s GDP. In that year, the industry created approximately 205,000 direct and indirect jobs across Canada — a truly national industry. For example, in 2016-17 Alberta’s oil sands producers spent $1.89 billion to purchase goods and services from 1,162 suppliers in Ontario alone. In addition, Canada’s oil sands industry continues to build positive and mutually beneficial relationships with Indigenous communities. In 2015 and 2016 (the most recent data available), 399 Indigenous companies from 65 communities across Alberta had direct business dealings with oil sands companies, valued at $3.33 billion. For example, the Fort McKay Group of Companies LP — owned and controlled by the Fort McKay First Nation — works extensively with the industry and has annual revenues of more than $150 million. As Canada emerges from the pandemic and looks toward


OIL SANDS

Fast Fact The industry’s overall emissions intensity has decreased by 29 per cent since 2000 and is expected to drop another 23 per cent by 2030

economic recovery, a thriving oil sands industry can have significant socio-economic benefits. The Canadian Energy Research Institute estimates that by 2029, the GDP impact of oil and natural gas will be $1.9 trillion, and federal, provincial and municipal tax revenue could reach more than $48 billion. That revenue supports education, healthcare, infrastructure, and social programs.

Challenges and Solutions Market access is an ongoing challenge for oil sands producers. Today, essentially all of Canada’s oil exports go to the United States. Access to other customers is crucial to strengthen Canada’s energy future. The Trans Mountain Expansion Project, currently under construction, will provide much-needed pipeline capacity to Canada’s West Coast and onward to world markets. Canada’s oil sands operators are committed to providing a cleaner energy future. The industry works every day to accelerate environmental performance improvements. For instance, in situ bitumen recovery uses water and burns natural gas to create steam. New, advanced technologies reduce or eliminate the need for water and natural gas, thus reducing emissions. Another example: left to natural processes, settling can take decades, so operators are researching various techniques to solidify tailings faster and reclaim tailings ponds sooner — or eliminate them completely.

When it comes to sustainability and environmental responsibility, Canada’s oil sands sector is already there. The industry is collaborative and solutions-oriented, focused on technology and innovation to improve environmental performance. Through Canada’s Oil Sands Innovation Alliance (COSIA), the industry has spent $1.4 billion to develop and share more than 1,000 technologies to reduce emissions, improve water management and speed reclamation. That’s in addition to research being done by individual companies.

Oil Sands and Economic Recovery As international demand for oil ramps up again, Canada’s oil sands industry can provide reliable, affordable and responsibly produced energy to markets around the world – and support thousands of jobs and businesses across the country through its multi-billion-dollar supply chain network. Post-pandemic, Canadians must have jobs to return to. The oil sands sector will be crucial to that recovery — and Canada’s economic future.

CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS This article was provided by the Canadian Association of Petroleum Producers (CAPP). CAPP is the voice of Canada’s upstream oil and natural gas industry. It enables the responsible growth of its industry and advocates for economic competitiveness and safe, environmentally and socially responsible performance. For further information please visit: www.capp.ca or www.capp.ca/oil/

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Cleaner air NEW TECHNOLOGIES ENABLE MINING TRUCKS TO REDUCE FUEL CONSUMPTION AND EMISSIONS. BY HILKO SCHMITT

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s much as 30 per cent to 50 per cent of a mine’s total energy use is typically due to dump trucks working on site and haulage trucks transporting materials from one location to another. As a consequence, diesel costs are significant – but these can be reduced by adopting the latest in-engine valve actuation technologies. Such technologies also reduce tailpipe emissions, which is becoming increasingly important now that investors expect mining businesses to demonstrate improved environmental responsibility and legislators are tightening emissions regulations. This is no small matter. It is estimated that 28,000 trucks are involved in mining operations around the world,

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and on average each of these consumes close to a million litres of diesel every year. According to some estimates, this is polluting the earth’s atmosphere with 68 million tons of carbon dioxide annually, equivalent to the greenhouse gas emissions of a small industriallydeveloped nation. Getting an engine technology to improve fuel economy and emissions simultaneously, however, has proved tricky. In fact, until recently these two objectives seemed mutually exclusive. But now, thanks to breakthroughs made by Jacobs Vehicle Systems, both can be tackled at the same time. Here I explain briefly how this is achieved and how this complements widely employed emissions-lowering


MINING

technologies so that emissions can be lowered even further at the same time as improving fuel consumption. Those widely used emissions technologies are exhaust gas recirculation (EGR) and selective catalytic reduction (SCR). EGR recirculates exhaust gases back into the intake manifold to reduce the oxygen content and temperature of the combustion process, in turn reducing nitrogen oxide (NOx) emissions. SCR injects ammonia through a catalyst into the exhaust stream to reduce NOx emissions. But there are downsides to both these solutions. Because EGR is rebreathing exhaust air, it does have a fuel penalty. Because the engine has to use fuel to raise the temperature of the SCR after treatment this system also worsens fuel consumption. In contrast, when complementing EGR and SCR, some valve actuation technologies can cut emissions to lower levels than ever before at the same time as improving fuel consumption.

Valve actuation technologies Though Jacobs Vehicle Systems’ valve actuation technologies are innovative, their hardware is well proven in the toughest working conditions because it has evolved from engine braking technology – and a two-position-variable valve system is at the heart of Jacobs’ first engine brake, the legendary Jake Brake, which went into service way back in 1961! Today, engine brakes are employed by all trucks in mining applications but differing valve actuation technologies are now also employed to meet differing needs. These technologies are the 2-Step Variable Valve Actuation System (VVA), Early Exhaust Valve Opening (EEVO), and Cylinder Deactivation (CDA). Intake VVA employs early or late intake valve closing to improve emissions by keeping the after treatment system hot during low load operation. EEVO also keeps the system hot during low load operation by releasing high energy gases directly to the after treatment system, as well as enabling faster warm-up of the engine and after treatment system to reduce emissions. CDA is slightly different in that it hydraulically disables the opening of the intake and exhaust valves. When this is combined with disabled injection in selected cylinders, the deactivated cylinders act as a gas spring and return the compressed energy of the air back to the crank. Although deactivation of up to three cylinders currently seems easiest to implement, a variable number, up to all cylinders in combination with Dynamic Skip Fire® technology using control methodology from Tula is also a possibility. By achieving higher load and exhaust temperatures in the operating cylinders, CDA makes it possible to maintain after treatment temperature when the engine is in low load operation. CDA also enables faster warm-up of the after treatment system after engine start-up and minimizes cooling of after treatment during coasting. Recent engine tests by an independent third-party consultant have shown

that in a set-up where three of six cylinders are deactivated and the engine is at its lowest loads, CDA can realize fuel economy savings of up to 20 per cent.

Easier on-site servicing Another recently launched feature, which improves fuel economy and reduces emissions is Fulcrum Bridge technology. This removes the traditional need to set and adjust the engine’s lash settings (the mechanical clearance in the valve train between valve and camshaft) by employing Hydraulic Lash Adjusters (HLA). HLA’s automated accuracy is valuable because when adjustments are made manually, even the slightest variance from the optimal setting can be detrimental to emissions and fuel economy. Fulcrum Bridge technology also eliminates the inconvenience, particularly acute in mining applications, of having to find somewhere dust-free to open the valve cover. Cleaner emissions will become even more of an operational imperative as regulations tighten. By 2024 the California Air Resources Board (CARB) is scheduled to tighten NOx emissions for low-load drive cycles and idling, with regulators elsewhere expected to do the same – and many mining trucks spend a lot of time idling. But now, at last, there are emissions-lowering solutions, which also reduce maintenance requirements and fuel consumption. Environmentally and commercially, valve actuation technologies are worth having.

HILKO SCHMITT Hilko Schmitt is Manager of Marketing and Business Development at Jacobs Vehicle Systems, the world’s leading producer of vehicle retarding and valve actuation technologies. Jake Brake® products are used by heavy- and medium-duty diesel engine manufacturers globally. For further information please visit: www.jacobsvehiclesystems.com

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Getting

grounded SIMON LOMAX ARGUES THAT FAR SUPERIOR OUTCOMES FOR ALL STAKEHOLDERS WOULD BE ACHIEVED IF GROUND SOURCE HEAT PUMPS WERE INSTALLED AT EVERY SUITABLE PROPERTY IN THE UK

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or some years, the most popular heat pump variant in the UK has been air source. It is understandable: their installation is simple and relatively inexpensive too. But is their widespread deployment sensible for the electricity system and the environment? A ground source heat pump (GSHP) installed at every suitable UK property – estimated to be over 85 per cent of the total – is likely to offer the lowest cost pathway to net

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zero carbon in the nation’s building stock. Such a strategy would provide the lowest cost and lowest carbon heat supply to users but, more importantly, would mean far more modest additional system costs associated with the additional generating capacity and strengthening of the existing electricity distribution network. Very simply, it should have been the approach adopted 15 years ago when GSHP’s were the most popular low carbon heating technology.


GROUND SOURCE HEAT PUMPS

In the interim, too much policy, specifically the Renewable Heat Incentive, has presumed the lowest cost solutions must somehow provide the best value. It is foolish. As a consequence, air source heat pumps (ASHPs) have been favored, perhaps because their seasonal efficiency, at around 275 per cent, is not hugely different from a GSHP at 340 per cent. For this reason, it might appear there is limited value in subsidizing a ground array but this narrow analysis wholly misses the point.

On the coldest day, with sub-zero air temperatures, an ASHP is only around 180 per cent efficient. By contrast, a GSHP will be operating at a far superior 300 per cent efficiency because the prevailing air temperature has not impacted its source temperature. This huge efficiency advantage, at a time when most heat pumps will be running, underpins the attractiveness of the ground source option to other stakeholders. Of course, electricity and heat storage will increasingly

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Below: Fifth Generation District Heating with Ambient Shared Borehole Ground Loop Arrays and Kensa Shoebox heat pump

Top left: Fifth Generation District Heating with Ambient Shared Borehole Ground Loop Arrays Bottom left: Fifth Generation District Heating Ambient Loop

impact operating profiles but the fact remains that an ASHP’s woeful efficiency when heat is most needed is a huge issue. Storage might help in the short-term but it will do little if the cold weather persists and it is exhausted. This undeniable weakness has fuelled an odd campaign to support a hybrid system featuring a gas boiler and an ASHP. Whilst it is clear why the incumbent gas network companies might promote this option, it is hard to see how anybody else might benefit, especially any householder who is lumbered two appliances with poor efficiency and only modest durability. Instead, the optimum strategy is a Government-backed mass ground array installation programme, which unlocks all the benefits, provides critical national infrastructure and creates a valuable 100-year plus legacy for the subsidy spend. In most cases, shared ground arrays, the 21st century low carbon equivalent to the gas infrastructure, should be deployed with most taking the form of a borehole field. Such a system architecture will allow users to select their own preferred electricity supplier and ‘switch’ at will, an

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GROUND SOURCE HEAT PUMPS

important benefit given more and more suppliers are now offering novel time-of-use tariffs, which can further reduce running costs and carbon emissions. Maximum savings are achieved if heat storage, perhaps using vessels equipped with phase change salts, is deployed so the heat pump only has to operate when electricity costs are low. Ground arrays are entirely hidden from view so their mass deployment cannot upset anyone. They also have modest and very predictable on-going maintenance costs. For these reasons, many entities, including energy companies, water companies and private investors, are keen to own such assets as they provide a long-term income potential via an Annual Connection Fee, the equivalent of a gas standing charge. Importantly, even having paid this charge, householders will be better off as they will benefit from the lowest running and ownership costs: they can also benefit from free passive cooling, an increasingly desirable feature as summer temperatures continue to rise, and another unique feature of GSHPs. Clearly, emerging business models, which divorce the cost of the ground array from the user are hugely disruptive to the current market, and the dominance of ASHPs. Why would any consumer prefer an unsightly and noisy ASHP to an identically priced GSHP if the ground array cost was paid by others? Obvious early opportunities exist in the social housing retrofit and new build markets where a single decisionmaker can require all properties to connect to the shared ground array. As costs fall, it will then be possible to tackle the private housing retrofit market in the second half of the decade, probably via long-term ‘heat as a service’ offers where the superior reliability and durability of the GSHP will support its adoption. In the short-term, some Government subsidy towards the cost of the ground arrays will be necessary and will deliver unrivalled value regardless of the metric - UK jobs created, carbon saved, fuel poverty alleviated, renewable heat generated. Yes, more subsidy is required but private investment will mitigate the cost to the public purse, and, in a post-Covid world, where an economic recovery is critical, the vast majority of the investment would directly benefit UK Plc. Only UK based drillers can deliver the ground arrays and the majority of GSHPs currently installed in the UK are manufactured in Cornwall. In conclusion, any holistic analysis of the total systemwide costs required to deliver zero carbon heating will reveal that the mass deployment of GSHPs is the optimum strategy. It works for the environment, the community, the supply chain and the energy system. And it is the only approach, which works for households. More efficient, more reliable and more durable GSHPs are the only low carbon technology that can provide a compelling alternative to gas boilers and the smarter network operators, here and in North America, have already seen reason to support their adoption.

SIMON LOMAX Simon Lomax is CEO of the Kensa Group, a fast-growing collection of award-winning businesses involved in the manufacture and installation of ground source heat pumps and the ownership of associated underground infrastructure. Now employing over 90 people the Kensa Group wholly owns Kensa Heat Pumps Limited and Kensa Contracting Limited. Kensa Heat Pumps remains the UK’s only manufacturer of ground source heat pumps and is the long-established market leader according to BSRIA annual reports. Kensa Contracting is a specialist installation business which focuses on large-scale new build and social housing retrofit programs. For further information please visit: www.thekensagroup.com

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NEWS

Time is money According to Hyperion Executive Search, a global talent acquisition company that works exclusively with clean energy and e-mobility companies, the wrong executive-level hire can cost cleantech companies approximately $1.5 million. “It’s strategically important for cleantech start-ups to quickly find

First for UK

the right candidate so that they have the agility to respond to today’s rapidly changing business landscape when every dollar counts,” said David Hunt, CEO of Hyperion. “By investing in the hiring process from the job description to the job offer, cleantech companies actually save money in the long run. In the cleantech sector, where the experienced talent pool is very small, such mistakes and costs are compounded,” added Hunt.

New joint venture Clean Power Hydrogen (CPH2) has

Vattenfall Network Solutions, a division of Vattenfall, the leading European energy company, has launched Power as a Service to the UK market, building on decades of experience in Sweden. With this new offer, Vattenfall takes full responsibility for major energy users’ electrical needs by owning their networks and managing all compliance, regulatory and environmental issues, so business owners can concentrate on their core business activities. The new service, which is the first of its kind in the UK, provides major energy users with power services in exchange for a fixed monthly fee. Power as a Service can help major energy users by freeing up significant working capital from their high voltage energy infrastructure for reinvestment in their core business. Unlike Energy as a Service (EaaS), which is an established model that typically refers to energy efficiency–related business models or subscriptions, Power as a Service applies exclusively to major energy users who own, or are looking to invest in new, high voltage electrical infrastructure. Vattenfall’s new offer is designed to support UK manufacturing, industry, transport and commercial property companies and provides a unique combination of finance, electrical design and installation, as well as operation and maintenance of businesses high voltage electrical infrastructure.

joined forces with B9 Energy in a new Joint Venture to manufacture and distribute the unique

Response vessel

Membrane-Free Electrolyser™. The Joint Venture (JV) plans to manufacture and distribute the patented electrolysers to the UK and worldwide from a base in Northern Ireland. The CPH2 Membrane-Free Electrolyser™ is a unique way to produce hydrogen. The most common form of green hydrogen production is by water electrolysis using either a PEM (Proton Exchange Membrane) electrolyser, which has a polymer membrane to keep the hydrogen and oxygen gases in their separate streams, or a membrane-supported Alkaline Electrolyser. Membranes are costly and prone to failure. The CPH2 technology does not use a membrane in the reactor ‘stack’ therefore improving reliability and reducing both CAPEX and OPEX cost.

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A new multi-purpose oil spill response and towage vessel being built for the Kuwait Oil Co will be installed with a Cathelco marine growth prevention system (MGPS) to prevent bio-fouling and corrosion in seawater pipework. The system is manufactured by Cathelco which has been part of the Evac Group since 2018. The 60-meter vessel will be equipped for towing services, area surveillance, offshore firefighting, logistics support duties and search and rescue in an area around Kuwait and in international waters. To protect the pipework against marine growth and corrosion, copper and ferrous anodes will be installed in five seachests, connected to a control panel. In operation, the copper anodes produce ions which prevent the larvae of barnacles and mussels from settling and creating blockages in engine cooling and firefighting systems. At the same time, the ferrous anodes produce ions which create a protective coating on the internal surfaces of pipes to mitigate corrosion. More commonly, in the case of ships with steel pipework, the anti-corrosive function is achieved using aluminum anodes. The concentrations of copper ions are around two parts per billion, effective in preventing marine growth from settling, but having no effect on the wider marine environment after discharge.

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$83 million contract Global contractor Dolphin Drilling has signed an $83 million contract with Petroleos Mexicanos (PEMEX). The deal will see the North Sea drilling pioneer’s Blackford Dolphin rig utilized in Mexico for the duration of the work, which is expected to last around 15 months. The Blackford Dolphin is currently mobilizing for Mexico ahead of the commencement of operations in October. A pioneer of North Sea drilling, Dolphin Drilling is celebrating its 55th year in operation this year and is one of the leading contractors in

Moving forward

the industry. The Blackford Dolphin was completely rebuilt in 2008 with a 6th gen topside and can operate

Malin Marine, a Scottish marine engineering company, has secured a Master Services Agreement (MSA) with Well-Safe Solutions Limited for the provision of Engineering, Naval Architecture, Shipping and Fabrication Services. Well-Safe Solutions has recently set out its commitment to invest £200m in bespoke assets in the next three years, with an innovative approach to meet the challenges and regulatory imperatives around decommissioning. Malin Marine Services, a new business unit of the Malin group, combine the heritage and expertise that Malin is known for, with creativity and a drive to develop best practice within the industry. This new agreement will enable both companies to work together to have a real impact in this exciting area of marine engineering. Said Ben Sharples, Director, Malin Marine: “We have been working with Well-Safe for many months now, on a range of services focused on their Well-Safe Guardian semi-submersible decommissioning rig. The significant effort and activity through all levels within Malin, especially during this challenging period, has been excellent, as has the relationship we have built with Well-Safe and their partners in a relatively short window. We are delighted to be associated with such a progressive Tier 1 contractor.”

in water depths from 70 to 1,700 meters moored. Bjørnar Iversen, Chief Executive Officer of Dolphin Drilling, said: “Our ability to mobilize the asset quickly and our excellent

REAL COPY

operational and safety performance were key to us winning the

contract. Blackford Dolphin is one of the most efficient moored semisubmersibles on the market, providing a reduction of the CO2 emissions associated with drilling due to its low fuel consumption and high drilling performance. “Our alliance with PEMEX demonstrates how we can add value

Strategic partnership

to operators located anywhere in the world. I am looking forward to us continuing our global growth in the

bp and Microsoft Corp. have agreed to collaborate as strategic partners to further digital transformation in energy systems and advance the net zero carbon goals of both companies. This includes a co-innovation effort focused on digital solutions, the continued use of Microsoft Azure as a cloud-based solution for bp infrastructure and bp supplying renewable energy to help Microsoft meet its 2025 renewable energy goals. “bp is determined to get to net zero and to help the world do the same. No one can do it alone – partnerships with leading companies like Microsoft, with aligned ambitions, are going to be key to achieving this,” said William Lin, bp executive vice president for regions, cities and solutions. “By bringing our complementary skills and experience together, we are not only helping each other achieve our decarbonization ambitions but also creating opportunities to support others on their journey towards reducing carbon emissions.” “bp shares our vision for a net zero carbon future, and we are committed to working together to drive reductions in carbon emissions and fulfil demand with new renewable energy sources,” said Judson Althoff, executive vice president of Microsoft’s Worldwide Commercial Business. “A strategic partnership such as this enables each organization to bring its unique expertise for industry-leading change and the potential to positively impact billions of lives around the world.”

years to come, and see Mexico as a strategically important market for our moored semisubmersibles.”

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A different

future?

THE ‘NEW ENERGY AGE’ ARRIVES EARLY. BY MICHAEL BRADSHAW

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s anyone in the industry will tell you, oil and gas markets are both cyclical and volatile, which results from frequent mismatches between available supply and consumer demand. In some cases, geopolitical events have constrained supply, in others economic crisis has resulted in falling demand. When prices fall, companies cut costs and reduce investments; then, when prices rise, often because of those earlier cuts, they forget the hard times and rush ahead with investments setting up the preconditions for the next price

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crash. It is not long ago that talk was about peak ‘oil supply’ and $100 a barrel being the ‘new normal,’ but more recently talk is of ‘stranded assets’ and oil prices being ‘lower forever.’ Thus, even before the current Covid-19 pandemic there were reasons to the think that the oil and gas industries were entering a new phase that we might call a ‘New Energy Age.’ In recent years, two driving forces have gathered pace creating what Jeremy Bentham, the Head of Shell Scenarios, has called an era of ‘radical uncertainty.’ The first is the ‘Shale Revolution,’ in North America, first in gas and then in oil,


MARKET OUTLOOK

that has heralded an age of fossil fuel abundance, challenging market equilibrium for both oil and gas. The second is climate change and the low-carbon energy transition that is accelerating as a result of the falling costs of renewable power generation and storage and the increasing traction of climate change policies post the 2015 Paris Agreement. In this coming New Energy Age, it is not hydrocarbons that will be in short supply, rather it is growing demand for them. Today fossil fuels clearly dominate the global energy system, according to BP, in 2019 they accounted for 84.3 per

cent of global primary energy consumption and renewables only five per cent. However, before the recent oil price crash and the ‘great lockdown’ associated with the Covid-19 pandemic, both oil and gas markets were under stress. After failing to drive US shale oil to the wall in 2014-15, OPEC brokered a wider coalition, OPEC+, to manage production. This resulted in both stabilising the oil price and sustaining at a more acceptable level for ‘Producer Economies.’ Unfortunately, that higher price also encouraged a surge in US oil production, added to which, Russia never really

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reduced its exports. In early 2020, as gathering economic headwinds slowed demand growth, Saudi Arabia sough to extend the production cuts, but Russia walked away. Saudi Arabia responded by increasing its exports and the price crashed. All of this on the eve of the pandemic. The rest is history, an unprecedented shutdown in economic activity resulted in a 30 per cent fall in oil demand in April and forced OPEC+, plus a few others back to the table in early April to agree even deeper cuts. The situation is now in the balance, the price has recovered, but there is a growing recognition there will be no quick ‘bounce’ back, and there is speculation that oil demand has now passed its peak. Even before the pandemic, there was recognition that natural gas faced a somewhat different trajectory through the low carbon transition. The industry has sold itself as the ‘greenest fossil fuel,’ somewhat of an oxymoron; but its green credentials have been tarnished by the environmental impacts of hydraulic fracturing and the acknowledgement that fugitive emissions along the supply chain undermine the lower carbon intensity when combusted. Furthermore, the energy of intensity of liquified natural gas (LNG)

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production has also called its benefits as a solution to decarbonisation into question. The global gas market suffered from oversupply as new LNG production, in Australia and the United States, outstripped demand growth. This would have happened earlier had China not embarked on a dash for gas. Initially, gas markets were less exposed to the impact of the lockdown, but summer in the northern hemisphere and already filling storage capacity have resulted in very low prices. So much so that it is no longer economic for US LNG terminals to liquefy gas for export to Europe and cargoes are being cancelled. Having weathered the lockdown, the question is ‘what happens next’? No one really knows; the pandemic is running riot across the global south and threatening to re-emerge in Europe. The IMF has lowered it expectations for economic output in 2020. It is clear that while social distancing and quarantine remain a requirement, economic activity will be depressed. Already, some oil and gas companies slashed their dividends, some have cut their workforces and the majority are cutting back investment. But there is a very real prospect that what happens next


MARKET OUTLOOK

will accelerate the arrival of the new energy age. First, because the current enforced changes in work patterns, behaviour and consumption may result in permanent changes that reduce demand for fossil fuels. Second, because the pandemic is requiring a massive amount of state intervention and assistance and recovery packages may come with green conditions attached that do not favour fossil fuels. Neither of these is certain and there is a good deal of pessimism abroad. Whatever the outcome, the global economy has been dealt a massive blow that will leave an indelible mark on the energy demand curve, resulting in low prices. Talk of tight markets in the future, with a short-lived period of higher prices, will only accelerate demand destruction. Thus, the supermajors, the national oil companies and the petrostates may only have one business cycle left before the new energy age sets in, bringing with it the beginning of the end for the fossil fuel industry. Undoubtedly, this will be a long goodbye, but in an industry where investments are in the multiple billions and payoffs span 20-30 years, decisions made now face a very different future.

WARWICK BUSINESS SCHOOL Michael Bradshaw is Professor of Global Energy at Warwick Business School, the largest department at the University of Warwick. Warwick Business School is consistently placed among the world’s leading business schools by global rankings. Its world-class research is building a reputation for WBS in sustainability, behavioural science, finance, entrepreneurship & innovation, strategy, leadership, healthcare and the future of work. For further information please visit: www.wbs.ac.uk

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Wind

'gold mines' GRAHAM STEWART, ANNI PIIRAINEN, KATE JOHANNESEN AND ADRIAN DE ANDRES TAKE A LOOK AT HOW TO FIND THE PERFECT SWEET SPOT FOR LOCATING OFFSHORE WIND SITES

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WIND POWER

B

y 2050, the Carbon Trust estimates that the UK alone could host up to 35GW of floating offshore wind (FOW).1 Floating wind still has a long way to go before it is commercially competitive against conventional fixed structures. Developers are therefore faced with a dilemma: costs will reduce as development increases but waiting around until costs come down could mean forfeiting the most promising locations to competitors. With the launch of a new offshore wind leasing round in Scotland (Scotwind), which has a significant proportion of sites suitable for floating wind, alongside the UK government’s consultation on the next contract for difference (CfD) allocation round, where will this expanding capacity be installed? The characteristics that are expected to define an ideal floating site can be grouped as: • Resource - the site should have high wind speed to achieve high energy yield • Transmission - annual offshore Transmission Network Use of System (TNUoS) costs should be as low as possible • Installation - proximity to the coast and a grid connection point is important to reduce cable lengths • Operations & maintenance - onshore substation for grid connection should also have enough available capacity for connection without triggering extensive reinforcements of the network

understand the competition between sites or projects within a leasing or CfD round. To understand where the most commercially lucrative areas for FOW development are located, the model was filtered to exclude fixed foundations, and by LCoE to include only the lowest values. The results shown in Figure 1 are based on a semi-submersible floating platform type, as this is the most progressed concept suited to a reasonably wide range of water depths. There will be some variation in the results if the model is applied to other floating platform types or specific designs

To compute and visualise the financial feasibility of fixed and floating offshore wind in UK waters, Xodus Group has developed a tool that incorporates geographical information systems (GIS) with sophisticated levelised cost of energy (LCoE) modelling. This provides a high-level and holistic understanding of where the ideal ‘gold mine’ offshore floating wind locations are, and where a rush for investment and development is expected.

Location, location, location The LCoE tool has many different applications. It can be used for early site identification, micro-siting, and to better

Figure 1: The predicted ‘gold mines’ of floating offshore wind

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The areas highlighted in light and dark pink have the lowest LCoE for FOW due to a more optimum balance being achieved across the range of parameters. Developed through the analysis of more than 40 different calculated layers, the model’s CAPEX and OPEX estimations have been made through carefully overlaying these tiers. The pros and cons for each area have been summarised in Table 1.

and environmental considerations would need further analysis in tandem to ultimately select which sites would be most suitable for development, and to check compatability with the UK seabed leasing and consenting processes.

Table 1: Site specific pros and cons

(DPOs) currently under consideration for the upcoming ScotWind leasing round. As The Crown Estate has excluded water depths greater than 60m in Round 4, there is no overlap of the ‘gold mines’ with these zones in the map. However, the map highlights the potential suitability of additional areas outside of these zones for floating wind projects, which could be considered for inclusion in future leasing rounds. The tool is therefore well equipped to assist

The tool offers a purely techno-economic view of the potential for offshore wind development around the UK coastline. It is therefore a starting point in terms of the optimal development areas from an engineering perspective, prior to removal of any unsuitable areas due to the various constraints that may encountered. Evidently, the engineering

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A floating future for wind power? A notable takeaway from Figure 1 is the number of areas that are consistent with the locations of draft plan options


WIND POWER

Figure 2: A buoyant market for offshore wind is on the horizon

potential developers on determining the optimal areas within these DPOs/bidding areas to maximise revenue and minimise LCoE. Careful consideration would therefore need to be given to the fundamental assumptions that make up each usecase. It is therefore recommended that the model and its filtering tool is re-run with tailored inputs to each specific project concept of interest to enhance the insights that can be gained. As such, development of the LCoE GIS tool is not static and future versions will augment the model fidelity to include a greater range of built-in input options such as turbine size, project capacity, timeline and project technology considerations among others. This will facilitate direct comparison of a range of project options. Likewise, regional versions will also become available for the US and Japanese offshore wind markets, for instance. An add-in module is currently under development to calculate the levelised cost of hydrogen for various project configurations as an alternative, or combined, route to market. Within the Scotwind leasing round, significant emphasis will be placed on FOW due to the number of sites that would be uneconomic for fixed structures. A high level of developer interest is anticipated in a number of these areas and the expectation is that an increased push will be made to lower the LCoE of FOW in the upcoming years. The

potential of a separate strike price for floating offshore wind in upcoming CfD rounds is therefore likely to accelerate this development, as well as any co-development and investment initiatives for floating wind coupled with the fledgling offshore hydrogen production industry. Only the results of the leasing rounds will tell whether developers will take decisive action on this ‘gold fever’ for a more environmental and sustainable energy mix in the 21st century. 1 Carbon Trust, ‘Floating Offshore Wind: Market and Technology review’, June 2015

XODUS GROUP Graham Stewart, Anni Piirainen, Kate Johannesen and Adrian de Andres all work at Xodus Group, a global energy consultancy, offering expert advice and solving complex problems. Multiskilled specialists work across the energy spectrum providing advisory, engineering and consultancy services alongside intelligent data solutions. From concept and development, through consenting, asset management and optimisation to late-life and decommissioning, Xodus helps clients to maximise value, proactively seeking clever ways to do things better. For further information please visit: www.xodusgroup.com

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Licence to

drill

AN INDUSTRY EXPERT’S GUIDE TO HIRING A DRILLING RIG

T

he drilling industry is one of the widest and most varied out there. The breadth and depth of drilling types requires a correspondingly wide-ranging collection of drilling rigs. What rig you hire hinges entirely on the kind of work it is that you need doing. With modern drilling machinery becoming increasingly expensive, rig rentals are becoming a more attractive proposition. We spoke to John Rodgman, director of the Borehole Solutions drilling group, to get his thoughts on what rig you need, as well as any other considerations you ought to make before going ahead and hiring your drilling rig.

What’s the scale of your job? It seems an obvious question, but you first have to consider what kind of geotechnical work it is that you need doing?

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There’s a big difference, after all, between carrying out some basic sample testing to determine soil characteristics, and using a rotary drilling setup to drill deep down and look for coal seams. To the layperson, they could both be constituted as ‘drilling’, and yet, in reality, their scale could hardly be more different.

Larger Rigs Most drilling companies will offer rotary and cable percussion drilling services, with a good portion of them now also offering sonic drilling options as well. Rotary drilling is best used for quarrying or mining purposes. Percussion drilling is effective in both consolidated and unconsolidated formations and sonic drilling, with its clean efficiency and quick speed, displays its efficacy most in overburdened formations.


DRILLING

Smaller Rigs Sample testing, as previously touched upon, is on the smaller scale of the drilling spectrum. A handheld window rig is easy-to-use (and can be used by one operator), low-cost and delivers quick and accurate results. If you’re looking for preliminary geotechnical work like a trial pit, then you will most likely only need a small JCB-type digger.

Does your project have additional limitations? Not every drilling scenario is simple, in fact, very few are. Gone are the days in which geotechnical companies worked purely in rural settings; green, open fields with easy access and lots of room with which to work. Nowadays, in fact, there are very few environments which can’t be drilled in some way or other. So, do some initial groundwork and consider whether you’re going to need a more specialised setup. You may need a restricted access rig, for instance, or a rig which houses the ability to work within limited space. First look at the drilling space, itself, and whether there’s room for a ‘normal’ rig. If not, then you’re going to need to use a rig which uses an external generator or power unit. Alternatively, you could look at hiring a rig with telescopic masts, that can drill with only a couple of metres’ worth of headroom. If, on the other hand, the issue is getting your rig to the site, itself – perhaps through a narrow alleyway, for example – then hire a rig which has width-adjustable capabilities so that you can get through tighter spaces.

Do you need any additional extras? One of the most common questions we’re asked is about the price of a rig hire, but in all honesty, there’s no one-size-fits all pricing structure. It’s very much dependent on the rig you’re looking to hire, how long you want it for, the rig’s condition, any additional extras such as casing alternatives, or track mates for especially muddy projects. If you’re

working in the middle of winter in a waterlogged field, then your rig is going to need a little bit of extra support from a traction point of view. Otherwise, there’s a very real risk of the rig getting bogged down in the mud, which doesn’t help anybody. Also, it’s worth making sure you do your research on the drilling company from which you’re hiring. Again, it may seem like stating the obvious, but many people are so preoccupied with the idea of actually getting their rig hire sorted, that they don’t do their due diligence beforehand. Have a browse online and ask around to find out whether the company has the sort of hiring experience you’re looking for. A good quality firm will take correspondingly good care of their rigs. Less experienced companies, on the other hand, or perhaps those companies who cut a few more corners, are more likely to let the condition of their rigs slide. That spells bad news for you as a customer, and it’s not unheard of for rigs to be hired and then conk out whilst mid-job. That’s added hassle and stress that you don’t need, as a customer, nor that you should expect – when you pay for a service, after all, you expect it to be a good one.

BOREHOLE SOLUTIONS LTD Borehole Solutions Ltd is a leading provider of geotechnical drilling solutions across the United Kingdom, and has been for over two decades. It offers an extensive and comprehensive range of drilling solutions, catering to any and every situation. The Borehole team has racked up over a century of drilling experience between them, and the firm is a proud member of various prestigious bodies within the industry – the British Drilling Association, CHAS, RISQS and Construction Line, to name but a few. For further information please visit: www.boreholesolutions.co.uk

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A strong

position

ECUADOR’S MINING INDUSTRY – PAST, PRESENT AND FUTURE. BY FREDY SALAZAR

T

wo large mines started in Ecuador last year, opening the country’s account as a mineral producer with an industrial-scale mining sector. Both projects were based on iconic discoveries that in their time changed the scientific and commercial view of Ecuador as a destination for mining investment. The Mirador copper porphyry discovery in 1995 was the first time that these kinds of giant deposits were recognised in Ecuador. Similarly, significant high-grade gold mineralisation found at Fruta del Norte in 2007 opened up the prospectivity for world-class, Tier 1 gold assets in the country. Ecuador is now recognized as one of the most underexplored, untapped, mineral-rich regions in the world. And the new Mirador copper mine and the new Fruta del Norte

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gold mine have really shown the world that the country is open for business. To understand the potential economic benefits mining could bring to the nation and for those that invest in it, look south along the Andes to Peru and Chile. These two nations currently produce 40 per cent of the world’s copper exports1 with mining contributing about ten per cent of GDP to each of their economies every year. The mineral-rich Andean geology clearly does not stop at the border, so Ecuador also has the potential to develop a responsible and sustainable mining sector to underpin its economy. In a country perhaps more associated with eco-tourism than mining the question has to be asked, is the country now poised for an imminent mineral resources rush? My personal


MINING

experience in the sector has tracked the evolving approach to the industry. When I began my career as an exploration geologist in 1986, small artisanal mines had already been operating in the country for more than 50 years. I became employed by an international exploration company in 1987, and from what I saw during my time working at these artisanal mines, it was clear that Ecuador was a land of significant mineral wealth. In fact, while many of my peers took the more oil-centric career path that was typical in our country, these compelling observations during these years became the driving force for what has now been a 30-year career in Ecuadorian exploration. From studying these artisanal mines and our own

exploration activity, we knew that Ecuador had the right rocks. However, the country lacked the right regulation and organizations to take mining from small artisanal sites to large-scale industrial projects. In fact, for long periods the mining industry has been actively discouraged in Ecuador. A moratorium on mining was imposed in 2008, a subsequent 70 per cent Windfall Tax for times of high metal prices was introduced, and a Sovereign Adjustment ensuring majority government ownership killed off the viability of an international resources sector. It should also be remembered, though, that Ecuador has been a dollarized economy since 2000 which means that printing currency is not an option. This just leaves borrowing, inward investment or foreign export earning

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as potential sources of US dollars. Historically Ecuador’s economy relied heavily on oil and tourism, and as the nation suffered heavily from global oil prices plummeting in 2013, Ecuador’s relationship with mining began to change. Economic diversification was needed, and in 2015 the Mining Ministry was created. Consultancy agency McKinsey reviewed the mining code, eventually leading to alignment with global best practice. And the windfall tax was finally abolished in August 2018. The response in the mining sector has been dramatic. Foreign direct investment (FDI) was more than $250 million in 2017, and since 2018, 28 internationally renowned mining companies have established entities in Ecuador to pursue investment opportunities. In 2019 two billion dollars in total were invested in at Mirador and Fruta del Norte. The country now has two well-regulated, carefully monitored mines, employing thousands of local people, and generating vital foreign exchange earnings Looking ahead, I expect a bright future for mining in Ecuador, although challenges and risks remain. As someone who was born and raised in the country and leads an Ecuadorian mining company, I know, for example, just how important it is to have proper community engagement. Ecuador is a country made up of many cultures, nations and diversities. It is essential that these are respected during every stage of the mining process in order to preserve the country’s rich history and unique civilizations. Responsible

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MINING

mining needs to build trust and show that the activity will be a win-win for workers, the local communities and the Government. Of course, a new industry in a country brings many unknowns. There will be some who want jobs and there will be others who do not want change. Some fear the rapid introduction of a new industry and potential downsides; others welcome the foreign direct investment and potential benefits. As we know from looking at Peru or Chile, a responsible mining sector can underpin an economy. Directly, mining creates jobs for Ecuadorians, stimulates investment and ultimately produces commodities sold in US dollars. Indirectly, it drives the development of infrastructure and brings international experts to the country with invaluable skills and knowledge to impart. Importantly, while many Ecuadorians fear the unknowns that mining brings, the government has reached an ineluctable truth that that the country needs a modern mining industry to pay for its social and infrastructure agenda. Simply put, key pillars of the economy such as the oil sector, agriculture (bananas, coffee, cocoa, flowers) and tourism are all ex-growth. With a growing population and falling oil prices a new mainstay of the economy is needed. I also believe that as familiarity with the mining sector grows, support for it will grow. As we look forward, I can see that the resources sector in

Ecuador is in the strongest position it has ever been in its history. With metal prices rising, capital available to invest in exploration and development, those companies willing to take the communities on the journey with them have a wonderful opportunity to create something special. The Government is now truly on side to support responsible industrial mining, and there is no reason for us not to meet or even surpass the competition of our neighbors as well as the global community. 1 https://pubs.usgs.gov/periodicals/mcs2020/mcs2020-copper.pdf

SALAZAR RESOURCES Fredy Salazar is the CEO and President of Salazar Resources, an exploration company that was founded by Ecuadorians with a focus on creating value and positive change through discovery. The experienced Ecuadorian team has a proven track record of discovery and an unrivalled understanding of the geology in-country, having played an integral role in the discovery of most of the major projects in Ecuador, including the two newest operating gold and copper mines. Salazar Resources is genuinely committed to ensuring that its projects have a positive impact on Ecuadorian communities and the economy. It is trusted by the government to set new standards working with the indigenous communities of Ecuador in the natural resources exploration sector. For further information please visit: www.salazarresources.com

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Increased

efficiency

DUNCAN BROWN OUTLINES BEST PRACTICE FOR OPERATORS ADDRESSING COST AND SAFETY EFFICIENCIES IN HAZARDOUS AREAS FOLLOWING THE CORONAVIRUS CRISIS

T

he coronavirus crisis is adding to the uncertainties the global oil industry faces in terms of new investments. One of the key challenges for operators going forward however will be to leverage new technologies for costefficient development and operation, whilst maintaining and improving safety. In recent years, the offshore industry has been consumed with declining production efficiency, lost revenues and questions over the long-term sustainability of operations as costs have climbed. As a leading independent provider of bolted joint integrity and flange management solutions, Asset55 are an example of a company that is supporting operators

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to construct, maintain and operate assets, more safely, but also efficiently and cost-effectively. Offshore industry challenges are nothing new to Asset55 and it’s what the company was founded on. As an independent SaaS company, we don’t provide tools or technicians out in the field, instead our staff can support clients through a combination of industryleading software called iQ and a support team of expert engineering consultants. We work with oil and gas operators, but also with people up and down the flange management service value chain - so primary contractors, service providers, tool providers and others. The technological advances we have seen within the


FLANGE MANAGEMENT

oil and gas industry weren’t really being taken up within the area of flange management. This meant we were seeing increased risk across all key areas, hydrocarbon leakage, asset downtime, damage to flange components and rework. The result of this meant there was also increased risk to safety and cost. Many bolt load calculations in industry today have been handed down, shared, revised and diluted and they now lack any traceability back to the original engineering source. It’s rare that they are in line with the latest best practice guidelines (ASME PCC-1) within the flange management area of oil and gas. ASME PCC-1 has been around since 2013 and was updated in 2019, and is widely recognised as the

most effective guideline of how to carry out flange management correctly from a bolt load calculation and technical point of view. Very few of the operators we deal with carry out bolt loads to that best practice, they use much more outdated methods. The Asset55 IQ system provides a source of sophisticated calculations in line with PCC-1. It’s continuously updated and improved so that as developments are made within the industry, our software moves with it, so we ensure that everyone using it is kept in line with the latest best practice. Flange Management is an area where the sophistication of the engineering approach has moved rapidly within the last three years. We ensure that the

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people we deal with don’t need to keep abreast of all these developments, as we keep them updated directly through our software. All of our calculations are independently verified. We have some really smart internal engineers and part of what we do is to make sure our calculations are transparent so we get everything independently validated by the University of Strathclyde. We aim to offer our clients a ‘single source of truth’ for bolt load calculations, across many thousands of different combinations of flange, gasket and bolt materials of various standards and we have made iQ the single go-to place for that information. As a result, we are continuously improving it, so as new gasket materials come into the market, we aim to update iQ accordingly. Even today, the most common method for selecting a bolt-load is by referring to a printed Torque table. However in the field, these hard copies are often duplicated and revised as required as they are passed around and therefore lose any traceability back to the original source. Slide rules are another variation on the theme, but in many cases the values they provide are now out of date. Whatever the format, all of these types of tools tend to be very limited and they can only cover a very small number of components. We worked with an operator with 16 different tables for the flange, gasket and bolt materials on their assets and their Torque tables still only covered 80 per cent of components. We understand that it’s difficult to get all of the

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information into a precise format if you are using static tables or spreadsheets. Version control is also a nightmare. We find with clients that they print off a table and it gets passed down on to a platform and then it gets scribbled over, changed and they’ve lost control. Out in the field because people can’t find exactly what they need, quite often they’ll have to make an approximation. i.e. ‘this flange sort of looks like one of them, and it’s all I’ve got on my table’. That can lead to some approximations that could potentially prove unsafe and we have seen that on a number of occasions where people just didn’t have the information to hand to be able to make those sophisticated engineering decisions. That’s an issue with the limited type of tools that are available out there. In contrast to that, Asset’s iQ system has the industry’s largest inventory of flange, gasket, bolts, lubricants and tools. There are thousands of combinations, which we define as a universal list. We commit to clients that if they find a standard or material that isn’t in the system, we will endeavour to get it built into it. That’s one of the huge benefits of having such a wide user group because if we get a new gasket material from a specific asset in Asia, we update the whole system then we could have another user in North America who would benefit from that as well. We are constantly improving the system and building up huge inventories of all the different types of components.


FLANGE MANAGEMENT

As our SaaS is our primary commercial model, we attempt to make iQ as good a fit as it can possibly be. However, there are some elements that you just can’t put into the software and that’s why we have our expert engineering team on hand to offer support for scenarios outside of iQ. Our expert integrity engineers will do things manually for our client base as required, picking up the stuff that could never be adequately covered by software alone. With this joint approach, the software and the consultancy service, we try and make sure all of our operator clients have everything they need. Another area we identified as a weakness in the industry was the storage of critical joint data. It was largely deficient so even in situations where a client had moved on from a paper-based system, very often the solutions were tied to an individual PC or an individual user. People were effectively building large spreadsheets of an infantry of all the joints, all the mechanical connections that you would find on any given oil and gas asset. However, keeping data in that format, there is an inherent risk of data security, overwriting or losing spreadsheets or that particular laptop gets lost. It’s also very difficult to quickly share that information or share updates when it’s on a file somewhere. Only 10 years ago, all of this might have been stored in an operator’s cardboard box! Quite often we have seen a lack of a single-consistent data set for connections on an asset. You get various service providers coming on to an asset, one company might be doing the turnaround, or a maintenance

contract and every time joints are touched, broken out or retightened, it was via a different system and that data was being recorded in a different place. This meant workers on an asset were struggling to build up an inventory of what they had, because often the contractor would take the data with them upon completion of the scope. We have a highly secure cloud-based solution so anyone who has the authorisation can access it 24/7 and because we are independent, it also means contractors can access it too. As an online solution, it also gives us the flexibility to turn people on and off very quickly. If someone comes to work on an asset for two weeks, we’ll give them access for that period of time only which means the operator gets the benefit of everyone using a single, consistent system. While initially operators were slow on the take-up of the system, we’re seeing traction now and I think some of that is due to a younger generation of technicians and engineers coming into the industry who have grown up with technology rather than pen and paper and therefore it’s second nature to them. It’s certainly helping in the drive to digitisation because iQ only takes a minute to use and it’s really user-friendly. Flange management is quite a niche area and is very specialised and even for well-developed engineering teams within an operator, it will only make up a very small part of their very busy day. That’s how we very quickly gained a global reputation for what we do. We deal with issues that engineers might only see once in their career, but we see them on a daily basis from operators working globally. With production efficiency in decline in many areas, planned and unplanned maintenance makes up the bulk of the costs. Asset55’s technology can help offshore operators improve maintenance in what has become a very challenging year. Efficient operators will then be far more likely to save time and cost and reduce risk to people and operations.

ASSET55 Duncan Brown is a director at Asset55, an innovative SaaS technology company that was founded in 2012 by David Frame and Mike Rudd. Based in Sunderland in the North East of England, the business has been a key player in the oil and gas technology and services market for eight years and is a leading provider of flange management and completions enablement solutions.

For further information please visit: https://assetfiftyfive.com/

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Photo: Scanbio

Climate-conscious craftwork

At 130km long, the Trondheimsfjord is Norway’s third-longest fjord. An important waterway since the Viking age, the fjord’s icy blue waters are surrounded by rare wildlife, rolling green hills, and small settlements humming with activity. On the inlet’s eastern shore sits the village of Skogn, which in 2018 became home to the world’s largest liquid biogas fuel (LBG) facility.

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With an optimum run-rate output of 250 gigawatt hours per annum, and capable of producing up to 25 million normal cubic meters of fuel a year, the Skogn plant is one of the most advanced in existence. Primarily involved in the transformation of raw materials, such as fish waste and industry by-products, into fuel for buses, heavy transport, vans, ferries, and rail transport, the Skogn facility is proudly


PROFILE

BIOKRAFT AS

s

LBG fuel is a renewable fuel, but it also helps to retract CO2 from our atmosphere. As such, I have no doubt that biogas is one of the most important climate risk mitigation strategies of our time

operated by Biokraft – one of the world’s leading producers of LBG. Håvard Wollan, Biokraft’s CEO, explains how the pioneering production facility came to be: “With the Skogn LBG plant, Biokraft took a first mover position, betting on the advancement of the LNG/LBG fuel market in Europe,” he says. “In retrospect, the LBG fuel market for heavy road transportation has developed more rapidly

than we originally thought and we are seeing very promising development in the shipping segment as well. “All LBG produced at Skogn is from waste, and we also produce renewable industry chemicals and renewable bio fertilizer. The farmers in Mid-Norway are, so far, very pleased with our product, citing that Biokraft’s bio fertilizer is both good agronomy and good ENERGY,OIL&GAS

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PROFILE

BIOKRAFT AS

Photo C.Hatrem

Photo: Kenneth Kvande

Left: From the announcement at Skogn July 1st 2020, from Left to Right: Nils Kristian Nakstad, Enova, Håvard Wollan, and Norway’s Minister of Climate and Environment Sveinung Rotevatn.

economy for them. Additionally, it helps to reduce the carbon footprint of food production, which is gaining more importance in the Norwegian agricultural sector every year.” Founded in 2009 by a consortium of experienced entrepreneurs, Biokraft was established with the ambition to build a new, modern, industrial venture producing biofuels. The company’s first factory was built in 2011 at Selva in Mid-Norway and was designed to produce bio-oil. After selling the Selva facility in 2013, Biokraft has since focused on LBG production. The construction of the plant at Skogn marked a major milestone in this journey and since its commission, the facility’s output has not disappointed.

During the most recent years, we have seen new and substantial interest from biogas-focused private equity firms and institutional investors. My own belief is that the green transition will only take place when the financial sector comes fully on board “The first LBG produced at the Skogn factory arrived in September 2018,” Håvard reports. “Since then, throughout 2019 and 2020, Biokraft has delivered positive EBITDA every month. Driven by what the Skogn facility is offering us, we ended the first quarter of 2020 with a record high EBITDA and profit before tax.” As one might expect, a project as complex and sizable as construction of the world’s largest biogas plant required support from a strong network of vendors, contractors, and partners. Fortunately for Biokraft, the firm could rely on its strong relationship with Wärtsilä, a smart technologies and lifecycle solutions company renowned for its work in energy markets. “Wärtsilä delivered the processes for both

KEMIRA Kemira have been working in close collaboration with Biokraft since the beginning and together we have tailored a customized solution for Biokraft’s process and biomass in order to increase biogas yield, gas quality and cost-efficiency of waste disposal. By adding Kemira BDP, Biokraft is able to optimize the biogas production by removing hydrogen sulfide formed in the digester, and significantly reduce the accumulation of volatile fatty acids. In turn we achieve a higher biogas yield, increased digester capacity, stabilized operating conditions, cleaner biogas and lower maintenance cost due to reduced corrosion. With Kemira polymers we optimize the sludge dewatering for a high-performing and cost-efficient waste disposal. Kemira defoamers manage unwanted and excessive foaming throughout the process, whilst the Kemira KemConnectTM VMI smart inventory management allows for transparency in inventory volumes and ensures optimized and secure supply for the ease of the customer. We are proud to apply our 100 years of chemistry experience together with Biokraft for a sustainable future.

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Smart chemical treatment With 100 years of chemical application expertise, we help municipalities and water intensive industries optimize every stage of the water cycle. We are the only manufacturer to offer a full product portfolio of coagulants,polyacrylamide polymers, process chemicals,and other water treatment chemicals, along with our smart digital technologies. > Wastewater > Industrial raw and process water > Drinking water > Sludge > Biogas > KemConnectTM smart solutions > Oil & gas

WWW.KEMIRA.COM


Photo: Thor Nielsen

Photo: Thor Nielsen

Biokraft CEO Håvard Wollan

upgrading and liquefying the biogas at our Skogn factory,” Håvard reveals. “If these processes do not work properly, we will not have any LBG to sell and deliver to our customers, so it’s been great to work with a company we know we can rely on.”

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Thanks to the support of companies like Wärtsilä, and the subsequent success of the Skogn facility, Biokraft has been able to secure contracts with companies like Hurtigruten. The business partnered with the Norweigan cruise line in 2019 as part of a record-breaking multi-year deal in which Biokraft agreed to supply the firm with climate-neutral LBG to power its ships. The fuel will be created using organic waste. “For Hurtigruten, it means they can provide state-of-the-art cruise operations with a significantly lower carbon footprint. For Biokraft and the whole industry, this deal and market move shows that LNG/LBG is a low-carbon footprint solution that delivers,” Håvard asserts. “As a whole, the sector is searching for the best way to make the transition to greener shipping. We believe LNG/LBG is the way to go, and that it will remain the way to go for many, many years. “We are still a relatively small company, but in spite of our size, I would say that we probably invest as much time and money in research and development as anybody else,” he adds. “Making money from ongoing operations has the highest priority, but we are always investing in strengthening our long-term competitive advantage through focused innovation. One of the explorative projects we are currently involved in is looking at how to improve the business from our own residual flows, after LBG production, as well as how to produce LBG in new and novel ways with both respect to unusual feedstocks and unique production processes.” As a business so committed to progress and creating a better tomorrow, Biokraft is pleased to work with a product in LBG that is inherently positive for the environment. In 2018, the company received Levanger SV’s Environmental Award and more recently, Biokraft’s sustainability efforts were supported by comments from the Zero Emission Resource Organization, which stated that biogas is a ‘doubly climate neutral’ substance. “When you add up the greenhouse gas emission reductions from producing biogas from waste, applying LBG as fuel, and replacing conventional fertilizer with bio fertilizer, you get more than 100 per cent,” Håvard states. “LBG fuel is a renewable fuel, but it also helps to retract CO2 from our atmosphere. As such, I have no doubt that biogas is one of the most important climate risk mitigation strategies of our time.


“At Biokraft, we believe that sustainability will be an increasingly important competitive advantage in the Norwegian industry. We want to be a service partner that significantly contributes to the sustainability of our clients, be it by utilizing waste and by-products in an optimal way, by providing renewable climate-friendly fertilizers in agriculture, or by replacing fossil fuels in transport. We have ambitions to utilize Norwegian raw materials and work towards using both forest waste and marine energy crops for biogas fuel. Pilot trials over the years have tested the biological process and our process plant is manned by experienced players with vital oil and gas sector knowledge, which will, no doubt, prove highly beneficial going forwards.” Though the Covid-19 pandemic may have caused a downturn across many areas of the oil and gas industry, Biokraft is determined to build upon its successes, and as such, the firm is already preparing for the commencement of its next major infrastructure development – Skogn II. “Our existing plant’s new sister site - Skogn II - will be a large-scale industrial LBG factory,” Håvard comments. “We are currently readying ourselves for construction to begin and are pleased to announce that we will be supported by Andion throughout. An industry leader in biogas production and wastewater treatment, Andion will be one of the key contractors in the Skogn II construction project. We have been impressed with the leadership and competence of the group and have the highest expectations going forward. It is a partnership with a lot of promise.” Supported by an experienced team within the organization, Håvard is proud of the way Biokraft has negotiated both the construction and operational phases of the company’s growth, but the CEO does not plan on slowing down any time soon. By no means willing to rest on his laurels, Håvard is keen to drive the company forward, spurred on by a mission to prove that Biokraft is one of the leading companies in the international biogas industry. “It has been a privilege to experience the rapid development of this industry over the last decade,” he declares. “During the most recent years, we have seen new and substantial interest from biogas-focused private equity firms and institutional investors. My own belief is that the green transition will only take place when the financial sector comes fully on board.

BIOKRAFT AS

Photo: Kenneth Kvande

PROFILE

What we are seeing now, including the strong interest in high-ESG-scoring companies in the stock markets, is very promising. We believe that rapidly increasing demand in LBG fuels for heavy road transport and green shipping will continue to drive our growth.”

Biokraft AS www.biokraft.no ......................................... Products: Liquid biogas fuels

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Investing in Italian innovation

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PROFILE

RAFFINERIA DI MILAZZO

In the long-term, we will continue to produce traditional fuels, but at the same time we are analyzing all of the opportunities that the energy transition and the circular economy can generate. We will continue to have a traditional production process, which will be accompanied by the production of alternative energies, perhaps exploiting the waste products of other processes and the production of biofuels

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PROFILE

RAFFINERIA DI MILAZZO

Situated on the north coast of Sicily, to the west of the Strait of Messina, Raffineria di Milazzo (RAM) covers an area spanning approximately 212 hectares. Originally called Mediterranea Raffineria Siciliana Petroli SpA, the refinery first entered into operation in October 1961 and continued to operate through to 1979. The plant was restarted in 1982, following the purchase of Mediterranea’s shares by Agip Petroli (now Eni, the main Italian player in the energy market), and, by the end of 1996, a new

company configuration was in place, with the refinery becoming an equal joint venture between Eni and Kuwait Petroleum Italia. Since the 1990s, the refinery has been the subject of a comprehensive development and technological adaptation plan, aimed at obtaining high yields of valuable products at the expense of heavy products such as fuel oil. As a result of these efforts, RAM is today one of the most complex refineries found anywhere in Europe, capable of receiving and processing a wide range of raw materials, and producing products including diesel, petrol, fuel for jets, LPG, propylene, sulphur and naphtha under the most stringent quality specifications. “Thanks to a balanced processing capacity of over ten million tonnes per year, we are today one of the biggest refineries in Italy in terms of production capacity, and one of the country’s leading plants in terms of constant monitoring, emission reduction and technological innovation,” explains Refinery General Manager, Luca Amoruso. “Indeed, our mission is to produce high quality fuels with the best available technology, while observing the highest efficiency, safety and sustainability standards.”

Expanding horizons Innovation has been the company’s key to success. “Over the years, we have always tried to stay ahead of the curve, and continuous improvement and innovation are key parts of our DNA,” Mr. Amoruso continues. “Over €1 billion invested into RAM over the last 15 years is testament to this, while for us, innovation means never being satisfied or accepting of success or failure, it means having incentives in place to improve our business, and it means being willing and able to expand one’s horizons into other fields. This attitude towards innovation and improvement has also contributed to the refinery’s excellent safety records.” SGS

SGS provides a wide range of oil and gas services, provided by high skilled technicians, who allow SGS to maintain a strong relationship with Milazzo Refinery. SGS has a solid background in all markets: Oil, Gas and Chemicals: Trade and gas free inspection, Claus and Amine plant performance tests, laboratory testing, fuels blending, cargo treatment, calibration, inventory. Certification and Business Enhancement: Quality Management certifications, training and coaching on the development and implementation of projects related to environmental, social and governance sustainability, circular economy, risk management, cyber security. Health and Safety: Occupational H&S and industrial hygiene, construction H&S, industrial safety, emergency rescue services, H&S training. Environment: Laboratory analysis, sampling and monitoring of environmental matrix (stack emissions, air, soil, water, waste) under 17025 accreditation, consultancy, and data management. Industrial: Working as a notified and accredited Inspection Body, we have a broad spectrum of national and international notifications/ habilitations. We can also offer NDT and destructive tests.

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YOU ASK, WE SOLVE. INSPECTION TESTING VERIFICATION CERTIFICATION Wherever you are in the world, in whatever industry, you can rely on our international teams of experts to provide specialized solutions to make your business faster, simpler and more efficient. SGS is the world’s leading inspection, verification, testing and certification company. We are recognized as the global benchmark for quality and integrity. With more than 89,000 employees, we operate a network of more than 2,600 offices and laboratories around the world.

OUR EXPERIENCE AT YOUR SERVICE: 9 SGS BUSINESS LINES

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ITALY HEADQUARTER: Milan, Caldera Street, 21. +39 0273931 - italy.sales@sgs.com

WWW.SGSGROUP.IT


PROFILE

RAFFINERIA DI MILAZZO

Turning back to the issue of investment, the figure that the General Manager refers to previously clearly shows the belief that RAM’s two shareholders have in the business. It is a figure that has also allowed for the flourishing of what is a modern, efficient, reliable and highly converted facility. “As the refinery has become more and more complex, we have made important technological improvements, some of which include revamping existing, and introducing new production systems,” Mr. Amoruso states. “It is fair to say, however, that not all of our investments are geared towards only improving our economic performance, but are also on improving our environment performance. Some of our recent investments to improve the quality of the refinery’s atmospheric emissions include the addition of a third Sulphur Recovery Unit (SRU) and amine washing plants to reduce sulphur compounds emissions, a third Vapor Recovery Unit (VRU), to reduce fugitive emissions when loading ships, and the installation of a GARO unit to reduce the quantity of gas routed to the flare. We also have put in place two circular economy projects to enhance waste resources, as well a number of CO2 reduction projects.”

S.E.A. S.R.L. – SERVIZI ECOLOGICI AMBIENTALI

As the General Manager goes on to detail, outside of the physical infrastructure of RAM, there is another element to the business which has proven to be just as invaluable in delivering growth and success. “From the outside, the refinery itself is probably most commonly associated with being a large industrial complex made up of a number of plants and other buildings. The reality though, is that the refinery has what I like to call a ‘soul’. That soul is made up of the more than 600 colleagues who call RAM home,” he enthuses. “It is they who put their hearts into the business – because they believe in what we do here – and provide it with its true strength! They are highly specialized people, who, over the years, have acquired a competence that is enviable. Above all, we try to make them feel part of a team, which thanks to everyone’s effort helps to achieve great results. Everyone treats the refinery like one of their own, to be looked after and grown in the best possible way.”

Community contributions As many as three-quarters of the refinery’s staff live in close proximity to the facility, with up to 97 per cent living within the

S.E.A. s.r.l. – Servizi Ecologici Ambientali – is a company operating in the Italian territory and abroad in the main industrial fields of petrochemical, refining, energetics, and the steel and civil industries, among others. The company is the result of long-standing experience and the work of a highly-qualified team in water treatment and waste management, as well as reclamation of tanks and plants, and the design and construction of process plants. S.E.A. s.r.l. is one of the main partners of Raffineria Di Milazzo thanks to the know-how and experience of its technicians and engineers. The company has always guaranteed immediate and specialized support to Raffineria Di Milazzo, especially for punctual and continuous maintenance. Its main goal is to do research activities on technical, environmental and maintenance issues related to industrial and civil sites, providing innovative solutions to reduce operational, management and environmental costs for private and public companies. The greater focus on safety issues and on the environmental impact of the company’s activities has found expression in the development of systems to optimize automation in order to minimize risks for the operational staff and the reuse of raw materials from waste currently taken to disposal.

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local Province. As such, the refinery is very much seen as being an integral part of the community, and RAM does make every effort to contribute back towards it. “Culture, local promotion, quality entertainment: they all help foster community cohesion,” Mr. Amoruso adds. “That is why, every year, we support local administrations and other institutions in planning strategies and events aimed at local economic, social and cultural development, according to a sustainable logic. Among the different communitybased activities we have undertaken include partnering with the Milazzo Red Cross, building playgrounds and other projects for local children, and letting schools and universities send pupils to the refinery as part of their education. Recently, we also purchasing ten intensive care beds for the local hospital designated as the Covid-19 center in the area.”

Innovation and tradition Speaking of the pandemic and the social, economic and health effects it has had on RAM to date in 2020, the unprecedented situation that Covid-19 has caused has forced it into reevaluating its short-term plans. Nevertheless, Mr. Amoruso and the rest of RAM’s management are incredibly proud of what it and its people have been able to

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PROFILE

achieve this year. “In a matter of days, we revolutionized our approach to work and we did so very successfully. Our day staff were set up to work from home immediately, and we set about making the site safe for all shift workers to continue to carry out their roles with the same levels of professionalism and commitment. We immediately installed thermoscanners at the entrance to measure temperatures, we equipped our staff with masks and made disinfectant liquid available, even producing it in our laboratory in the early stages when it was not easily available. We have organized different entrances and exits to changing rooms, rearranged the service at the canteen, and we sanitize all of our workplaces several times a day. There have been difficult moments, and unfortunately there will certainly be more, but I am particularly proud of what has been achieved.” Moving forward, Mr. Amoruso is clear that a combination of innovation and flexibility is key to future growth, and that RAM needs to remain well versed in anticipating

RAFFINERIA DI MILAZZO

change, while also updating the products it produces in line with evolving energy policy guidelines. “In the long-term, we will continue to produce traditional fuels, but at the same time we are analyzing all of the opportunities that the energy transition and the circular economy can generate,” he says. “We will continue to have a traditional production process, which will be accompanied by the production of alternative energies, perhaps exploiting the waste products of other processes and the production of biofuels. I believe that the refinery of the future will be the right mix of tradition and innovation. At the same time, we are improving the energy efficiency of our plants and our environmental performance.” In conclusion, Mr. Amoruso ends our conversation on this important note: “We are proud to be an important player in the international refining market; but we are even prouder, to have been, and still be, a driving force for the development of the area where we are and we feel we belong.”

Raffineria di Milazzo www.raffineriadimilazzo.it ......................................... Products: Petrol, diesel, kerosene, LPG, propylene, sulphur and naphtha

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Northfield Mountain Pumped Storage Asset’s - Upper Reservoir

Advancing New England’s Clean Energy Future

In this time of uncertainty, during a global pandemic, organizations must find a way to be competitive, be safe, and be there for their communities. FirstLight Power, Inc. (FirstLight), a clean energy and energy storage provider in New England, offers a shining example of how to continue vital operations and help the community at the same time. The renewable energy provider operates hydroelectric,

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energy storage, and solar generating facilities to produce clean, reliable electricity to power more than 1.3 million homes across New England. Though some have been operating for more than 100 years, FirstLight’s assets are still contributing towards a cleaner, more sustainable energy future. The company is also steward to more than 14,000 acres of beautiful land, lakes and rivers, and miles of shoreline in Connecticut


PROFILE

FIRSTLIGHT POWER, INC.

Above: Northfield Mountain Pumped Storage Asset’s Power Station inside the mountain Below; Northfield Mountain Pumped Storage Asset – Generator

and Massachusetts that are enjoyed year-round by visitors looking to camp, hike, fish, crosscountry ski or generally enjoy nature. “Our principal motivation as a business is to provide reliable, sustainable and environmentally beneficial energy solutions to the communities we serve,” explains FirstLight’s Chief Financial Officer, Sidd Manjeshwar. Sidd joined the company in early 2018, with the mandate

of assisting FirstLight in transitioning into a standalone growth entity following its divestment from multinational electric utility company ENGIE in 2016. “In the months following my arrival, we ushered the company through both an operational and legal restructuring, giving FirstLight greater strategic, operational and financial flexibility,” Sidd continues. “Last year, ENERGY,OIL&GAS

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we followed this by implementing a strong, flexible capital structure, during which time we raised the largest ever private placement bond financing for a single asset in the US market. We had about 20 different investors involved in this transaction, 11 of whom were completely new capital to this sector, which is a significant number in today’s market, and have also established a new holding company level revolving credit facility in partnership with several new relationship banks.” Today, FirstLight operates 11 hydroelectric generating facilities along the Connecticut, Housatonic, Shetucket, Still, and Quinebaug Rivers – collectively producing more than 200

megawatts of power – as well as an 18,000panel solar farm in Northfield, MA. The company also operates two pumped hydro storage facilities in western New England along with lithium-ion battery storage resources at two separate universities in Massachusetts. Northfield Mountain Pumped Hydro Station, the largest pumped storage asset in New England, constitutes 64% of the total energy storage capacity in all of New England. Overall, the company’s portfolio includes more than 1,400MW of clean energy generation and energy storage capacity. “Our assets are invaluable in terms of helping meet New England’s clean energy goals, they are

WHITE & CASE LLP White & Case is one of the world’s premier providers of legal services to the energy industry. Trusted partner to FirstLight Power Resources Services LLC, we help project sponsors, operators and financiers meet their commercial goals worldwide. Our firm prides itself on creating unique deal structures, enabling our clients to achieve commercial success even in challenging regulatory and market environments. With our global team of more than 300 energy lawyers, we help clients meet renewable project goals wherever they may be located and whatever the source, and share FirstLight’s commitment to providing affordable energy solutions that contribute towards a cleaner, more sustainable energy future. Our experience with renewable projects is broad and ranges from onshore and offshore wind, PV and CSP solar, geothermal, hydroelectric, biomass and biofuels. We advise on the entire life cycle of assets in this sector, from early stage development, regulation, commercial contracts, construction and financing, through to structuring and executing mergers and acquisitions, disputes and arbitration.

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PROFILE

FIRSTLIGHT POWER, INC.

FirstLight’s UMass Dartmouth Battery Facility (From Left to Right: Sidd Manjeshwar, Chief Financial Officer; Steve O’Toole; Elliott Stewart, Director Risk & Insurance; Peter Gomez, DA/RT Manager; Mike Jackson; Justin Trudell, VP Operations; Marc Silver, General Counsel; Mike Dineen, Manager Accounting)

critical for grid reliability and fuel security, but also enhance the seamless integration of new renewables into the grid,” Sidd states. “Pumped storage assets in particular are real feats of engineering that are seldom built these days. The same can be said of run-of-river facilities, which are only really economically viable today if they have long-term power offtake contracts supporting them. From that perspective, assets such as FirstLight’s are highly unique and critical pieces of infrastructure, and we invest a considerable amount of capital each year in maintaining them so as to safeguard their longevity.” As FirstLight’s Vice President of Operations Justin Trudell emphasizes; “despite the challenging energy markets and accompanying cost controlling measures over the last several years, the FirstLight operations group has continued to deliver above target unit reliability, ensuring our generating assets are available for grid reliability when called upon.” In addition to providing clean energy, FirstLight strives to maintain a strong commitment to social responsibility, and has a long history of giving back to the community. The company provides high value jobs to locals and contributes millions of dollars in property taxes each year. It has also given more than $1 million to local community organizations in the

past several years alone. Its competitive grants provide opportunities for projects associated with FirstLight’s host communities and have funded dozens of different projects relating to environmental stewardship, public health and safety, and education. Recent awards include environmentally oriented school programs, rescue boats and equipment for local emergency service departments, river management programs, the development of several new parks, and most recently support for local food pantries during the Covid-19 pandemic. Back in March 2020, with Covid-19 spreading across the eastern United States, FirstLight moved quickly to announce the temporary closure of its public recreation areas in Massachusetts and Connecticut in order to ensure the safety of members of the community and its own workforce. From a company-wide perspective, all non-essential personnel switched to remote working from home, while those working at its power facilities – and thus deemed essential staff – continued to safely operate to keep clean, renewable power being delivered to New England’s power grid. “The safety of our people and our communities has always been a priority to FirstLight, and from the earliest stages of the pandemic we implemented a number of new policies designed to increase protections for our

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Above: FL team building event (From Left to Right: Justin Trudell, VP Operations; Chris Hurley, Director Finance & Accounting; Peter Gomez, DA/RT Manager; Marc Silver, General Counsel; Sally Manning, Manager - Settlements / Reporting, Jessica Martin, Senior Accountant; Sidd Manjeshwar, Chief Financial Officer)

people, while maintaining our ability to provide clean electricity. We are thankful for all their commitment, hard work and resiliency during these challenging times,” Sidd enthuses. “We have consistently ensured we are complying with all of the relevant guidance provided by state and federal public health authorities regarding workplace hygiene and cleaning practices, social distancing, and health monitoring. We have also used flexible work schedules to reduce sequestered staff levels at various assets in order to mitigate the exposure of people to one another wherever possible.” The global supply chain disruptions caused by Covid-19 have forced the company to manage procurement vendor relationships to secure the supplies needed to keep their equipment running, supplies that included personal protective equipment (PPE). In spite of this challenge, in response to a call for donations of PPE for front-line responders, FirstLight donated its existing supply of N95 masks to a regional healthcare facility. “We’re grateful to the FirstLight employees who identified that we had

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PROFILE

Above: 2020 Source to Sea Cleanup on the Connecticut River, from Left to Right: Elizabeth Bazler, Senior Land and Compliance Specialist; Lindsay Hartnett, River Boat Interpreter; Carter Wall, Manager GRA/ Communications)

a supply of N95 protective masks and that we could respond to the state’s call to support and protect our front-line healthcare workers,” said FirstLight’s Director of Government Affairs and Communications Len Greene. There is little doubt that the FirstLight team has accomplished a great deal over the last two years in particular. “I am honoured to be a part of the FirstLight team and proud of everything it has accomplished. In addition to our previous mentioned internal efforts, we have also undergone a successful rebranding of the company, implemented several cost saving operational improvements and efficiencies, continued to improve on our culture of operational excellence and innovation, successfully entered a new line of business with our first acquisition and integration of the largest portfolio of behind-the-meter battery storage assets in Massachusetts, and safe guarded our company’s health, safety and risk management during this pandemic,” Sidd details. “FirstLight has also undergone something of a digital transformation in recent times, investing capital into our IT infrastructure, cyber security, and migrating over to an entirely new cloud-based enterprise resource planning (ERP) system. Not only have the above investments allowed the company to seamlessly transition to remote working in the months since the Covid-19 pandemic hit, but they also place it in a position to deliver future scalability and synergistic value creation. “On that subject, our intention as a business, is to continue to expand our renewable and energy storage footprint in competitive power markets to facilitate the transition to a clean energy future. We remain a highly efficient, lean

FIRSTLIGHT POWER, INC.

Above right: One of the largest hydro stations in Connecticut, Stevenson Generating Station has been supplying the region with more than 100,000 MWh of clean hydroelectricity each year since 1919

company, and the strong scalable infrastructure that we have built up over time gives us a competitive advantage. Most importantly, we have a fantastic team spread out across all of our assets which is capable of doing wonderful things for all our stakeholders!”

FirstLight Power, Inc. www.firstlightpower.com ......................................... Services: Hydroelectric, energy storage and solar projects

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Bulk storage

Ambitious and innovative, Navigator Terminals Limited is an independent bulk liquid storage provider that plays a key strategic role in the fuel, chemical, and gas supply chain across the UK. Established in 2016 with the intention of creating the leading bulk storage owner and operator in Great Britain, the Navigator Terminals was created when the operating assets of Vopak UK and Greenergy North Tees were combined. Today, Navigator boasts over 1.28

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million cubic meters of storage across four terminals, each strategically located in major UK ports. Storing and handling crude, petroleum, chemicals, distillates, bitumen, liquefied gas, and biofuel products, the selected terminals are pipeline connected to local manufacturing and gas processing plants. With state-of-the-art petrol blending facilities and industry-leading road loading racks, customers of Navigator Terminals benefit from these investments.


PROFILE

“What sets us apart is our customer service, value add and what we can bring to the table,” explains company CEO Jason Hornsby. “We have built our reputation on service excellence, developing dedicated, highly-skilled and competent people to deliver a consistent proactive solution driven approach. In terms of strategy, we have industry leading automation and asset integrity management blueprints that can be applied as ‘out of the box’ solutions.

NAVIGATOR TERMINALS UK LIMITED

This is supported by an in-house Engineering and Projects Centre of Excellence, designing and executing value adding growth projects irrespective of size or complexity. “Having worked both locally and internationally, the Navigator UK management team has gained over 200 years of storage sector experience, successfully managing multiple upper tier COMAH sites in one of the most highly regulated operating environments ENERGY,OIL&GAS

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PROFILE

NAVIGATOR TERMINALS UK LIMITED

in the world. The group as a whole has the capacity and depth in experience to leverage the knowledge, and resources of over 200 employees and specialist staff operating from four UK locations.” The four locations are Navigator Terminals Seal Sands, Navigator Terminals North Tees, Navigator Terminals Windmill, and Navigator Terminals Thames. Strategically located on the River Thames, Navigator Terminals Thames is at the heart of London’s distribution network, serving the fuel, chemicals, and bitumen markets of the Home Counties, London, and

the Midlands. A highly-automated facility, the 378,000-cubic-metre site offers a full suite of auxiliary services including blending, heating, and additivation. “At our Thames site, we have been able to support our customers, through a number of key strategic projects. Continued successes with efficiency have been the main focus,” Jason explains, “as well as lowering and improving the unit cost of storage and supply for the future. Additive injection and storage capabilities have been further enhanced, and we have introduced new products to the portfolio, including high-

G R CARR G R Carr has worked with Navigator Terminals Thames Limited, supplying mechanical services, as well as steelwork and pipework for many years. Having worked on most of the major projects that have taken place during this time, such as bitumen, gasoline, butane and diesel projects, the scope of supply for G R Carr has increased to also include maintenance services and tank upgrade projects. Many changes have taken place over the years and as Navigator Terminals Thames Limited has grown, improved and invested, so has G R Carr. With accreditations now in place for; • Fit For Nuclear (F4N) • Health & Safety (BS OHSAS 18001) • Environmental (ISO 14001) • Structural Steelwork to EN 1090 Execution Class 4 • ISO 9001 (Quality Assurance) These accreditations and its Continual Improvement Programme, leave G R Carr well placed, as it looks forward to continually supporting Navigator Terminals Thames Limited into the future.

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blend biodiesel loadable from the rack as well as Marine Gasoil (MGO) on the rack or delivered by barge for ship receipt.” Product discharge lines have also been a focus for Navigator in recent times. Two 14-inch lines have been installed on both the company’s main jetties through to the Thames terminal for distillate and gasoline grades, offering improved resilience and faster service - the work is just a small part of a much larger initiative. “Our latest project is to increase the operating capacity on our jetties, through additional dredging and the installation of new dolphins, which allows ships to work more efficiently,” he says. “The successful execution of this project means ships can be laden with increased cargo,

WATERSTONS We have worked in partnership with Navigator for 18 years, supporting its ambitious growth and improvement plans. We have helped its business become more resilient, improved operational efficiency and safety, enabled supply chain integration, designed bespoke software platforms, integrated business systems, and project managed large-scale improvements. Our services include day-to-day IT management and technology infrastructure solutions, bespoke software, analytics and intelligence, business-focussed consultancy, mergers and acquisitions support, and cyber resilience. Our goal is to help you build a better business for you and your customers. We would love to find out more about your growth plans and innovation ideas. Why not give us a shout at hello@waterstons.com or call 0345 094 0945 to see how we can help.

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PROFILE

which helps our customers with savings through transit cost, again working towards the lowest unit cost of storage. “Constant improvement in service and operational efficiency is something we must focus on in order to remain ahead of the competition,” Jason adds. “Over the last four to five years, at the Thames terminal alone, we have continually improved the site, spending in excess of £10 million in the process.” Strategic investments like the one Jason refers to have become a trademark element of Navigator’s growth. The company is not afraid to invest in areas of the business that it believes will help to support its customers and fuel its continued expansion. Alongside the addition of blending facilities, road loading racks, and terminal pipeline connections, Navigator investments have allowed the organization to put innovation into practice. “We’ve been able to move on from traditional tank inspection practices by utilizing drone technology to carry out close detailed internal inspections and external thickness checks on assets,” Jason reveals. “This strategy not only reduces cost and inspection time, but it also lowers the safety risks to personnel. We’ve also introduced an Enterprise Resource Planning (ERP) solution, purpose-built for the needs of the storage industry. This has standardized

NAVIGATOR TERMINALS UK LIMITED

processes across the organization from contract setup to stock accounting and HMRC regulatory management. “Supporting Navigator’s business and productivity with technology is important, and our long-standing technology consultancy partner, Waterstons, provides access to a wide range of specialists, who help run and maintain our scalable, flexible IT systems. These systems, including some tailored specifically to Navigator’s needs, facilitate data-driven decision making. Waterstons understand our business, and work in partnership with us to support our ambitious innovation and growth plans,” says Jason. In recent times, one of Navigator’s largest investments has been the acquisition of a brand new 10,000-cubic-metre bitumen storage and road loading facility for its Thames terminal. Consisting of electrical trace heating pipelines, two 5,000-cubic-metre tanks, a marine loading arm, and all ancillary services, the multi-millionpound investment was delivered on budget and is widely recognized as the best bitumen loading facility in the South East of the UK. A highly modern, dynamic, and customerfocused organization, Navigator’s success is driven by the strong values that underpin the company’s everyday decisions and behaviors. This was reinforced in 2019 when Navigator ENERGY,OIL&GAS

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Terminals released a new set of ‘Service Principles and Values’, ensuring that current and prospective customers will experience a standardized and consistent service that sets an industry benchmark. The new guidelines outline the ideas of integrity, teamwork, professionalism, innovation, ownership, and most importantly safety, that are demonstrated at every level the organization. “Our company culture begins with education and is driven by valuing our employees and the role they play in Navigator’s success,” Jason states. “We strive to nurture an open, inclusive, and just culture whereby everyone can and is expected to contribute, speak out, and stop work if they feel it is unsafe. This is an extension of our pioneering safety culture, which we have developed and honed since the inception of the UK terminals in the 1960s. Members of the Navigator management team were industry representatives on the post-Buncefield task groups and Process Safety Leadership Group (PSLG) contributing to the formulation of the regulatory landscape for the UK sector,

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the learning of which is now being adopted internationally. “The safety, health, and wellbeing of our staff and all individuals who visit our terminals is of the highest priority and each of our locations is accredited in a range of globally recognized standards, including EN ISO 9001 (Quality Management), 14001 (Environmental Management) and 45001 (Occupational Health and Safety Management). These external achievements are complemented by our internal Navigator Safety Essentials - organizational standards that define how we conduct our core business functions in the safest possible manner.” In addition to the great importance placed on process and personal safety, Navigator recognizes its responsibility to protect the environment and is committed to being a responsible member of the communities in which it operates. With this in mind, the organization has set a number of goals to ensure that, wherever possible, the environmental impacts of its activities are reduced. These targets range from reducing


PROFILE

the size of the carbon footprint associated with travel through to a reduction in water and energy usage at Navigator terminals via the implementation of a range of innovations, including the use of smarter technology. “Our sustainability strategy is broadly based around using less, buying less, and paying less for our energy,” Jason explains. “We operate an energy committee which has a clear mandate to improve the use of energy across our business, while developing project ideas to reduce consumption. Along with the moral reasons to pursue green initiatives, security of supply and energy resilience are key factors when we assess future projects. The company is now assessing a number of significant Behind the Metre (BtM) investment ventures including battery storage and solar.” With the current UK target of no new carbon fueled cars post-2035, along with net zero emissions by 2050, Navigator Terminals is looking to the future by starting to diversify today. “We are committed to this transition, along with both the upstream and downstream customers we serve, to decontaminate and de-carbonize our industry. Along with our industry sector, we still see an important role for next generation synthetic and liquid E-fuels in the required energy mix that will be needed to realistically achieve the government targets, rather than relying on a one technology solution only. We believe that we have a critical

NAVIGATOR TERMINALS UK LIMITED

future role to play in achieving these targets. We are in a fortunate position within these emerging markets as we have the experience, expertise, and land available at our terminals to partner with the next generation renewable fuel producers, as we move further away from traditional carbon petrochemical products.” Considering the impact of the COVID-19 pandemic on the global economy, Navigator Terminals has performed well throughout a challenging year for the industry. From this foundation, the company is now working towards participating in a variety of green growth diversification projects to ensure Navigator Terminal’s existence and profitability up to 2035 and beyond. “We hope some of these projects will be operational within the next three to five years,” Jason reports. “Our appetite and focus is for organic growth, whilst expanding the business by diversifying to meet market demand. We will continue to innovate and deliver, staying ahead of the market through our ability to adapt as opportunities change.”

Navigator Terminals UK Limited www.navigatorterminals.com ......................................... Products: Bulk liquid & gas storage provider

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Defying expectations

With its roots in oilfield chemicals running deep throughout the company – the experience of its technical team is measured in centuries, not just years – Downhole Chemical Solutions (DCS) is a recognized leader in the development,

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manufacture and application of performancebased slickwater fluid system additives. “We are what we call a ‘pure play stimulation chemical company, specializing in exclusive chemical products and services that are proven to provide superior performance,


PROFILE

DOWNHOLE CHEMICAL SOLUTIONS

In the next few years, we would like to take the business to a point whereby it could potentially be acquired or merged onto a bigger platform so as to be able to bring even more solutions and units to prospective clients. As previously stated, DCS is leading the charge when it comes to things like our DriFlow technology, and we have no intention of taking our foot off the accelerator, and we believe that with the right support we can continue to grow at an even faster pace

enhanced returns and consistent quality,” begins DCS’ Chief Executive Officer, Wayne Curtrer. By combining its team’s geology, reservoir analytics, frac design and stimulation chemical experiences, DCS is able to assist

its clients in all aspects of their stimulation program. Starting with pump schedule design input, and running all of the way through to analysing post frac flowback, the company can serve as a trusted advisor to said clients’ completion programs. ENERGY,OIL&GAS

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“Our approach to business is somewhat unique, in that we are a laser-focused organisation, dedicated to our core competency, which is delivering exclusive slickwater fluids and chemical offerings,” Wayne continues. “We effectively marry three core areas of thinking. The first is our molecular knowledge, which covers our team’s unmatched understanding of the chemistry behind our solutions, while the second is what we refer to as our application knowledge. This relates to how DCS’s chemistries actually perform in downhole conditions, and this expertise is one of the things that really sets us apart as we are able to address E&P clients in a constructive way that they understand. The final element is our operational knowledge as it relates to the manufacturing, logistics and field application of our products.”

Patented solutions In recent years, DCS has taken its expertise a step further still, by enhancing its knowledge and offerings around high-concentrated friction reducers (HCFR’s). On average, friction reducers account for approximately 55 per cent of the total chemical spend on a stimulation task. Traditionally, the delivery method for the chemicals used in

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these products have been liquid emulsions or slurries that contain minimal polymer content. This has often been found to be highly inefficient and a contributor to higher operator costs. In response to this – in January 2019 – DCS introduced its first DriFlowTMdry polymer unit to the market. Utilizing patented polymer dispersion technology, DriFlowTM reduces total chemical spend by up to 25 per cent, delivers true on-the-fly dry polymer delivery and real-time water quality monitoring, greatly reduces HSE risks associated with liquid friction reducers, and comes equipped with a fully integrated communications system with cloud-based data acquisition. “The introduction of our DriFlow system has taken DCS into an entirely different realm as it relates to how we can serve our clients with industry-leading, cost effective solutions,” Wayne enthuses. “Dry friction reduction is a complex technology to handle, hydrate and disperse, so in doing so we believe that we have truly set the bar in this field, and that has led to DCS becoming the leading provider of it in the United States. As of September 2020, we have 11 of these systems operational, with a further five sets to enter service before the end of the year, and three more planned by the end of Q1 2021.”


PROFILE

DOWNHOLE CHEMICAL SOLUTIONS

Today, DCS boasts coverage in Midland and Pleasanton, Texas, where in the case of the former its presence can be found in the prolific Delaware and Midland Basins of the Permian, and in the latter, it operates in the greater South Texas, specifically in the Eagleford Shale and Eagle-Bine Shale areas. Further afield, it also operates in the Anadarko/Arkoma Basins in El Reno, Oklahoma, and in the Marcellus and Utica areas of Claysville, Pennsylvania. In the last 18 months, the reach of the company has also extended internationally, with a large amount of its product being shipped down to Argentina, where it is being used by Pan American Energy and Argentina’s state-owned oil company YPF. The success of DCS and its patented solutions have resulted in the company KEMIRA

Kemira KemFlow friction reducers and high viscosity friction reducers are used in the global stimulation market to improve frac performance and enhance well productivity. Working closely with service companies like Downhole Chemical Solutions, we are continuously expanding our portfolio of innovative frac additives, including friction reducers, scale inhibitors and biocides. Combining our 100 years of chemistry expertise with industry collaboration enables our R&D experts to understand the field application and develop products to meet the everchanging needs of the frac industry.

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being listed on the prestigious Inc. 5000 list, the annual guide to the fastest-growing privately held companies in the United States. Reflecting upon this, Wayne goes on to detail what he puts this continued prosperity down to, and how DCS has, in fact, always been a company that has defied expectations. “The key factor behind our success is – simply put – the outstanding, repeated performance of our offerings, which has been extremely well received by our E&P clients in particular,” he says. “When we first founded the company, back in November 2015, we did so at a time of low oil prices, so we essentially started life at the bottom end of the market,” Wayne adds. “Personally, I was born and raised in and around the oil and gas industry, so I have seen first-hand the ups and downs that it can face. This allowed me and the rest of the team to approach setting up DCS knowing that it needed to be a company that could withstand

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the peaks and valleys it would inevitably encounter. This helped us to overcome the trying times we have seen, and in fact thrive through them.

Forward plans “As we came into Q1 of 2020, we were coming off the back of seven months of continuous growth and profitability, but then Covid-19 hit. What we made a concerted effort to do, however, was not to rush to diversify or modify the business, but to really hunker down and focus on remaining the preeminent slickwater fluid system provider in the market. What we have found is that when you have a simple, focused business plan such as ours, you are not forced to make a great deal of changes when challenges arise.” With the business now having returned to profitability following an expected dip during a spring marked by Covid-19 related


PROFILE

restrictions, and with the majority of those employees who were furloughed at the height of the crisis now back at work, immediate efforts include delivering the above mentioned new DriFlow units over the next few months. Increasing the number of these units in active service will further support the wider goals of Wayne and his team going forward. “To put it simply, what motivates us is winning, and our entire ethos as a group is based on the principle that if you win at the small things, then you are likely to win at the big ones too. In business, this generally results in profitability, and that allows us to take care of our people, whether that be in the form of providing healthcare or pension plans,” Wayne states, before setting out a longer-term vision for DCS. “In the next few years, we would like to take the business to a point whereby it could potentially be acquired or merged onto a bigger platform so as to be

DOWNHOLE CHEMICAL SOLUTIONS

able to bring even more solutions and units to prospective clients. As previously stated, DCS is leading the charge when it comes to things like our DriFlowTM technology, and we have no intention of taking our foot off the accelerator, and we believe that with the right support we can continue to grow at an even faster pace.”

Downhole Chemical Solutions www.stimchems.com ......................................... Services: Slickwater fluid systems and viscosifying friction reducers

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Floating new solutions

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PROFILE

YINSON HOLDINGS BERHAD

FPSO John Agyekum Kufuor (JAK)

Jahn Atle Høgberg

We ensure to draw a lot from the experienced people we have in the company which differentiates us from a new business. Even though the Offshore Production Division is not that old, we have probably as many experienced people as any of our competitors. They are the foundation of our success and we care about their skills, happiness, and engagement

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PROFILE

YINSON HOLDINGS BERHAD

With a presence in eleven countries, Yinson Holdings is a world-leading energy solutions provider shaping the global landscape through the provision of modern, purpose-built assets for the energy industry. Established in 1983 by current Chairman Lim Han Weng, Yinson began life as a humble logistics company, but before long, the firm had launched itself into a trajectory of rapid growth. By 2010, Yinson had become one of Malaysia’s biggest transport firms, supplying customers with over 550 trucks and operating its own fleet of around 365. Soon after, the business expanded into marine transport and, after partnering with PTSC Vietnam, secured its first offshore contract with FSO Bien Dong. A few years later, Yinson had, among various other successes, acquired Fred. Olsen Production, won contracts in Malaysia and Nigeria, as well as locking down a major 15-year deal with ENI in Ghana for an FPSO handling 58,000 barrels of oil and exporting 210 million standard cubic feet a day. Jahn Atle Høgberg, Yinson’s Senior Vice President of Business Development,

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discusses the company’s current position following 37 years of irrepressible progress. “Today, we have three business divisions at Yinson,” he explains. “The first is Offshore Production, which at the moment is the biggest area. We specialize in the provision of integrated services for Floating, Production, Storage, Offloading, (FPSO) and Floating, Storage, and Offloading (FSO) units for the oil and gas industry. In this area, we control the full value chain - we sign the contract, build the FPSO, own it, lease it to the client and operate it for the long-term. The second division is Renewables, where the business model is also to build and operate our own assets, focusing mainly on wind and solar power. Finally, we have the Offshore Marine division which was our first focus and covers the ownership, operation, and chartering of offshore support vessels to service the energy industry. As you can see, it is pretty much the same business model in each division.” In terms of the Offshore Production Divison’s latest activity, Yinson was recently awarded its


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YINSON HOLDINGS BERHAD

first contract in Brazil. Widely regarded as an important step forwards for the business, the company is currently constructing a new FPSO for the Brazilian venture, which is due to begin operations in 2023.

Upgrade capabilities “We’ve been following Brazil for many years and waiting for these projects to come to the market, so this kind of development was a target for a long time. When it finally came to market, we managed to secure one of the FPSOs inquired by Petrobras,” Jahn reports. “Once constructed, FPSO Anna Nery is slated for continuous production for 25 years in the Marlim oil field in the Campos Basin, Brazil. The FPSO is a rather large unit, with a storage capacity of 1.6 million barrels, production capacity of 250,000 barrels of liquid per day whereof 70,000 barrels a day of oil and gas compression volume of 142 million standard cubic feet. The unit marks our entrance into Brazil which is without a doubt the biggest market in the world for FPSOs and will continue to be so in the years to come.”

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When completed, FPSO Anna Nery will be the newest addition to Yinson’s growing fleet of modern FPSOs and FSOs at work around the globe. Alongside FPSOs in operation in Ghana, Nigeria, and Malaysia, the firm has joint venture ownership in one FSO and one FPSO in Vietnam. Earlier this year, the company’s FPSO Abigail-Joseph (ex Allan) was subject to refurbishment and redeployment work that will allow the FPSO to operate in Nigeria for another 15 years as part of the first greenfield project by an indigenous Nigerian company, FIRST E&P. “We hooked up this FPSO in August and we will be going forward with commissioning and start-up over the next months. The upgrade in the shipyard took about nine months, which is rather quick for an FPSO project. It underlines our Offshore Production Division’s capabilities,” Jahn says. “We’re not really a technologybased company when it comes to equipment and so forth, but we focus on continuous improvement, meaning that we capture lessons learned throughout the whole FPSO lifecycle, from design to decommissioning, and then we


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YINSON HOLDINGS BERHAD

deal with all these lessons in a systematic way that ensures we never make the same mistake twice and instead, repeat everything that has been successful. “We ensure to draw a lot from the experienced people we have in the company which differentiates us from a new business. Even though the Offshore Production Division is not that old, we have probably as many experienced people as any of our competitors. They are the foundation of our success and we care about their skills, happiness, and engagement. As examples, we have launched several programs this year in support of personal development and performance recognition.”

Business strategy Throughout a challenging year for the industry, Yinson has bucked global trends and continued to hire new team members to bolster the company’s workforce in support of its many ongoing projects. Despite the difficulties of working in various locations worldwide, the company reacted swiftly to the Covid19 outbreak and has been able to operate efficiently and with a minimum of interruption across the board. The company’s progress in 2020 under such difficult circumstances has endowed Yinson with a solid foundation on which it can continue working towards its

mission of ‘passionately delivering powerful solutions’ across the energy sector, as a reliable, open, adaptable, decisive, and sustainable partner. “I think our business strategy has helped us succeed,” Jahn emphasizes, when asked about what he believes are Yinson’s key differentiators in the market. “Along with value chain management and a quest for continuous improvement, we are also very good in the area of cost control and solutions. Adding on to that, we have successfully built several strong partnerships with international corporations, which allows us to tap into their expertise and network as well. We further try to be innovative when it comes to solutions and we’ve got an excellent track record in operations, including a five-year fleet uptime record of 99.8 per cent. Perhaps more than anything, what really makes us stand out is our project execution strategy. We subcontract topside modules and detail engineering, whilst all the project, engineering and construction management as well as conceptual engineering and the interface management is performed by Yinson. We focus on quality rather than quantity in our workforce. We hardly ever have to lay anybody off due to market fluctuations because of the long-term lease contracts we pursue and our smaller, more capable organization.” Within the next three to five years, Yinson

Bhadla Solar Park

ARAGON

Aragon AS is an independent engineering contractor delivering overall process solutions and services to the offshore Oil, Gas and LNG Industry. Our strategy is to be a worldwide provider of environmentally sound solutions. We cover entire topside design, but with core competence within recovering, conditioning, treating and liquefying natural gas. Our scope of services includes turnkey EPC contracts, engineering services, equipment supply, FEED, technical studies and operation services. Aragon’s mission is to improve the value of our Clients’ portfolio by providing quality, cost-efficient engineering solutions through high performance project execution with trusted partners and constant, predictable results. We strongly believe that we can provide qualified solutions that meet performance and all project requirements at globally competitive prices.

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expects its Offshore Production Division to lead the company to become one of the top three FPSO firms in the world. As for Yinson’s Renewables Division, Jahn hopes the firm will be able to both acquire further operating assets and develop and construct its own greenfield assets, transforming the renewables arm of the business into a major revenue stream for the business. “We currently have one solar plant in India with a generation capacity of 140 MW (AC) and depending on the weather, the estimated annual electricity production is 298,000 MWh. For this site, we have a 25-year power purchase agreement in place that runs into 2042, but we are looking at a lot of new prospects too,” Jahn declares. “We plan to eventually build our own

FPSO Helang

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plants and operate a selection of renewable generating assets. Our primary focus is onshore wind and solar, but we might also look into offshore wind and hydro opportunities. Of course, we’ll still do oil and gas production - predictions suggest that, in 30 years’ time, oil will be produced in similar amounts to today - but renewable energy will surely be more important in the global energy mix going forward and will help us expand our company and grow our legacy.” In early August, Yinson was, for the second year running, recognised as a ‘Most Honoured Company’ in the 2020 All-Asia Executive Team Ranking organized by leading international financial publication Institutional Investor. Additionally, Group Chief Executive Officer


PROFILE

YINSON HOLDINGS BERHAD

FPSO Helang crew

Lim Chern Yuan ranked third in the Best CEO category for the Oil & Gas sector by buyside analysts. The awards act as confirmation that Yinson is a company moving in the right

direction, and with big plans for the future, as well as some exciting projects just around the corner, the firm is sure to play a vital role in the industry for decades to come.

Yinson Holdings Berhad www.yinson.com ............................................ Services: Energy solutions provider

FRAMES

International oil and gas equipment supplier Frames has been awarded significant contracts by Yinson for the Anna Nery FPSO that will be located on the Marlim Field, offshore Brazil. The supply includes chemical injection systems, an electrostatic coalescer, HIPPS and a subsea hydraulic power unit. Frames has more than 35 years of experience in supplying such systems to the global FPSO market and its packages have been operating offshore Brazil since 1997. The close co-operation and early involvement with Yinson made design optimisation possible to meet the challenging space limitation on Anna Nery FPSO. The combination of a compact design and meeting the performance and project requirements shows Frames’ engineering at its best. Frames Brazil Office will support Yinson during operation with maintenance and local support during the lifetime of the FPSO. Frames is proud to be part of Yinson’s ambitious journey into Brazil. www.frames-group.com

...with exciting plans for new developments, upgrades and refinery expansions on the agenda, the business can be viewed as a leading light for not just Pakistan but for the wider energy industry

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Towering above the vast West Texas scrublands, amongst the rugged canyons filled with rattlesnakes, tarantulas, and scorpions, Phillips 66’s Borger Refinery is a facility like no other. It was Phillips

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first refinery and is located around 50 miles northeast of Amarillo, and half a day’s drive from the majestic Rocky Mountains. Today, the Borger refinery is owned by WRB Refining LP, a 50/50 partnership between Phillips 66


PROFILE

PHILLIPS 66 – BORGER REFINERY

Lone star

spirit

and Cenovus Energy, and operated by Phillips 66, but its rich heritage can be traced back to the mid 1920s when Frank Phillips and his brother came to the West Texas panhandle in search of oil. Having already struck black

gold near Bartlesville, Oklahoma, Frank and his brother travelled West to try their luck in Hutchinson County, where they soon began drilling – with extraordinary results. The purchase of a small skimming refinery ENERGY,OIL&GAS

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PROFILE

PHILLIPS 66 – BORGER REFINERY

Building on our rich history and the strong Phillips 66 brand, over the next three to five years we plan to consolidate some of our operations, refurbish our offices, improve the efficiency of our plant, and attack cost as much as we can. Much of that will be focused on work to reduce our energy and water consumption, looking at all kinds of things from reduced steam venting to the recycling of water

followed and the booming oil town of Borger sprang up almost overnight. “The people that came into this area and developed the oil were very tough minded, resilient people because Borger is not an easy place to live,” explains Refinery Manager and industry veteran Darrel Hail. “It is dry and rugged, with only 22 inches of rain per year and about 3000 feet in elevation, yet in 1935, Borger was part of the largest oil field in the world. From there, it’s just continued to grow. Along with the skimming refinery, Phillips began buying, installing, and constructing natural gas liquid plants as well. From about 1500 barrels a day in 1926, it grew to about 15,000 barrels a day by 1930.”

Focus on research Construction began in 1930 on a pipeline from Borger to East St. Louis, Illinois, to move much needed liquid products to Midwestern customers. Later the pipeline was extended into Chicago. This was the first such pipeline in the world. People in Chicago could purchase gasoline produced from Texas crude, located more than 1000 miles away. Known today as one of the nation’s most technologically advanced facilities, Borger Refinery’s focus on innovation began

early. The company’s first commercial HF alkylation unit went into operation at the Borger Refinery in 1942. Phillips developed the technology a year earlier for producing 100 octane aviation gasoline thus playing a key part in World War Two, for the Allied war effort. In 1961, the first resid cracker was installed to transform residual crude oil and turn it into valuable products. These are just two examples of key technological advancements carried out at Borger. “Phillips 66 has always had a very entrepreneurial spirit,” Darrel says. “We have a research center in Bartlesville and we’ve always been open to technology and pioneering new products versus standard commodity fuel. We employ a lot of research scientists in Bartlesville today, so that is part of our heritage and it’s still a part of our continuing operation. Phillips has always seen Borger Refinery as a place for experimentation and the development of cutting-edge products. “The First HF alkylation unit I mentioned is a pretty impressive bit of technology, as is the 2200-pound FCC feed hydrotreater. The unit started as a resid hydrotreater in 1982, but when the US changed its Sulfur in fuel regulations, we converted the unit in 2007 allowing it to take the Sulphur out of our fuel. We also added a 28,000 barrels a day

Darrel Hail

R&R

From projects to major emergencies, R&R strives to assist with all maintenance needs, providing everything from trays, bracing, patches and inlays, to shields, tube sheets, dollar plates, furnace hangers, structures, pipe supports, slip blinds, spec blinds, and much more. R&R consistently performs its tasks in a timely manner, and is regularly complemented by plant engineers for helping to pull them out of a bind. R&R endeavors to keep its customers’ production running to schedule, and is driven by a desire to make its customers look good.

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delayed coker. The benefit has been that we get a larger volume of quality feed to our FCC units and in 2019, we added a vacuum tower to that process, so we’re getting all the diesel that is converted as well. The coker, hydrotreater treating the FCC feed, along with the vacuum tower, provides us with a big competitive advantage to run heavy crudes. Essentially, we are 2200pound hydrotreating half our feed stock to this plant, which is going to provide a lot of extra liquid barrels, and liquid barrels is where you make money.”

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Range of products Now, in 2020, Borger Refinery is a 150,000 barrel a day facility predominantly processing West Texas sour crude oil, as well as heavy Canadian crude. In general, the site produces motor fuels, gasoline, and jet fuels for commercial grade aircraft, alongside diesel for trucks, tractors, and farming operations. The refinery makes a Sulphur stream that goes into making fertilizers and coke which is burned as fuel. “We are a little bit different to a lot of refineries because we manufacture some


PROFILE

low volume, high value specialty products, including aviation gasoline for small planes,” Darrel states. “We make solvents used for products like post-it notes and tire manufacturing, and we also send some product across the street to the Chevron Phillips Chemical plant where they make odorants, dry-cleaning fluids, gasoline engine testing materials, and precursors to chicken feed of all things. “Although, we have a wider product slate than most refineries, the bread and butter of the economics of the plant is mostly in fuels production. If you think about the size of the refinery, running 150,000 barrels a day, some of these specialty product streams might only be 500 barrels a day, so they are very small. They are difficult to make and often

PHILLIPS 66 – BORGER REFINERY

energy intensive, so we get to command a higher price.” Historically, Borger Refinery has run sour crude from Midland and Odessa, Texas. However, the recent explosion of lighter, sweeter crudes produced in the Permian region – a lot of which are now being exported – has led the facility to reassess its priorities. “We are evaluating installing a continuous catalytic regenerator reforming unit so we can tap into those light barrels and turn them into high octane gasoline and other products,” Darrel reports. “That is a 2023 venture that we are currently in the middle of and just about to begin detailed engineering. It’s a really big project for us that will provide a lot of construction jobs

AGGREKO

Aggreko salute WRB’s Borger refinery operations. We are both honored and privileged to be part of the refinery’s ongoing success by providing expertise and support to the site’s critical infrastructure. Aggreko will continue seeking improvement opportunities as well as supporting turnarounds and day-to-day needs to assist the refinery in achieving their performance goals. Aggreko are a world-leading provider of mobile modular power, temperature control and energy services. We are working at the forefront of a rapidly changing energy market and are focused on solving our customers’ challenges to provide cost-effective, flexible and greener solutions across the globe.

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and keep the refinery robust in its operation for the next 20 to 25 years. We are mainly doing it because the crude landscape has changed and the lighter, sweeter crude is more available than the heavier stuff, so we are now aiming to do both.”

People power As Borger Refinery continues to thrive, Phillips 66 is eager to highlight the contribution of its first facility’s most important asset – its people. Having worked in the industry for more than six decades between them, Darrel and Refinery & Community Relations Director Kenny Morrison are united in their belief that more than any refinery aspect, it is its workforce that makes a real difference. “Whether it be people out there searching for that last bit of reliability and improvement, reducing the company’s environmental footprint, or taking care of their brothers and sisters so no one gets hurt, people are 100 per cent the name of the game in this business,” Darrel asserts. “In terms of our workplace

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here in Borger, people take real pride living in this region of the country and working for the refinery. People really help each other and there is a spirit of teamwork. We’re just a small plant in a relatively small county and I think that pulls people together. We’ve got about 1000 employees and contractors that we employ daily. Then we provide feed stock for the chemical plant across the street that hires around 500 more. That is a lot of good, high paying jobs in this part of the country that wouldn’t be here otherwise.”

Community support In 2019, Borger Refinery rolled out Phillips 66’s Energy in Action program, a set of expectations that encourage employees to promote and celebrate working for the greater good, creating an environment of trust, seeking different perspectives, and achieving excellence. No stranger to public recognition, the facility also earned the 2019 AFPM Distinguished Safety Award, the US oil industry’s most coveted honor. “People have asked me,” Darrel adds, “why I work for Phillips, and I answer, that after all these years, I’ve never been asked to do anything unsafe, unethical, or bad for the environment. We have always been a principle-oriented company and every year we fill out an ethics survey to make sure that everybody understands that you must do things right to work for Phillips. I think that permeates the business.” Widely recognized by Borger residents as ‘the lifeblood of the local community’, Borger Refinery not only employs local people and encourages business for local hotels and restaurants, but the facility works closely with local schools, colleges, and organizations to devise volunteering activities and fundraising opportunities. “Any time there is an opportunity for goodwill, we like to get involved,” Darrel reveals, “from mentoring on math, to a program called Junior Achievement, which covers life skills for 8th graders. We also work on Habitat for Humanity projects and many employees are involved with the Boy Scouts of America for whom we run an annual sporting clay shooting event that raises approximately $50,000 every year. “We have stable, high paying jobs at this refinery, and we want more people to understand what we do here so we can attract the best talent. We collaborate with Frank Phillips College in town to provide high


PROFILE

PHILLIPS 66 – BORGER REFINERY

school graduates with access and capabilities to get these roles. We offer internships and programs that promote and teach them about working with their hands. “The Borger Refinery believe it is a privilege to operate in this community. What’s nice for us is that the community appreciates us too. This is according to high ratings on periodic company reputation studies where we ask community leaders how we are doing. Philanthropy is so important for a smaller community like Borger. We work with the local fire department to tackle wildfires and have a strong working relationship with the Borger police department. We train with and regularly donate extra equipment to smaller departments in the area. The facility is also involved with the United Way and other charities.”

Green efforts Following a year in which Borger Refinery has continued to perform well despite the negative impact of Covid-19 on the oil industry, the facility is now looking to expand its interests further north and west of West Texas. Denver, Colorado remains a key market for the refinery and work is currently ongoing to reverse a natural gas pipeline between Denver and Borger to allow the facility to transport more products north. The announced closure of refineries in Wyoming and New Mexico looks set to offer new opportunities for product placement in those areas of the country too. “All in all, we are trying to make the most of investment in the Permian Basin and build upon other pipeline investments on crude and other products,” Darrel comments. “This is still a commodity business, to the extent that if we can produce motor fuels cheaper than somebody else then we stay in business, and we are firm believers in that strategy. “Building on our rich history and the strong Phillips 66 brand, over the next three to five years we plan to consolidate some of our operations, refurbish our offices, improve the efficiency of our plant, and attack cost as much as we can. Much of that will be focused on work to reduce our energy and water consumption, looking at all kinds of things from reduced steam venting to the recycling of water. In the last ten years, we have reduced our Sulphur dioxide emissions by over 98 per cent and in 2019 we commissioned a $25 million wastewater project to improve water recovery.

The company has invested a lot of money and Borger Refinery is currently enjoying its best environmental performance ever, but we are always looking at new greener energy sources to help reduce our energy bills and environmental footprint.”

Phillips 66 – Borger Refinery www.phillips66.com/refining/ borger-refinery ......................................... Products and services: Crude oil refinery

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Clearing the air

Owned and operated as an enterprise utility by the City of Clearwater, Clearwater Gas System (CGS) is the fourth largest municipal gas system in Florida. In business since 1923, Clearwater Gas serves over 28,000 customers across 20 municipalities and ranks 34th out of nearly 1000 public gas systems in the Unites States. Primarily a natural

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and propane gas service provider, Clearwater Gas also offers maintenance, installation, repair services, and appliance sales, as well as operating as a Compressed Natural Gas (CNG) fueling station. Speaking to Energy, Oil and Gas, Executive Director Chuck Warrington summarized the energy provider’s guiding philosophy.


PROFILE

CLEARWATER GAS SYSTEM

According to the US Department of Transportation, pipelines are the safest form of energy transportation, but still, as a gas utility, Clearwater Gas System is regularly safety inspected by the Florida Public Service Commission and the Department of Transportation

“Our mission statement incorporates the ongoing effort of Clearwater Gas to be a ‘provider of choice’, which addresses allowing consumers the opportunity to ‘choose’ either natural gas or propane gas energy,” he explained. “Given today’s energy and utility climate, most corporations have outsourced several customer service functions, but

Clearwater Gas System has continued to offer - for over 95 years - in-house functions such as service and repair, installation, appliance sales, and a ‘live’ voice during customer calls.” Clearwater Gas has enjoyed impressive growth throughout the last decade and has current annual revenues of nearly $50 million. In 2019, robust marketing efforts resulted ENERGY,OIL&GAS

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PROFILE

CLEARWATER GAS SYSTEM

in the addition of 1,879 new gas customers and a growth rate of 7.5 per cent. Such significant progress led a report compiled by the Municipal Natural Gas Association to name Clearwater Gas System as the fastest growing gas utility within the state. Building on this success, CGS recently moved into a brand-new utility complex. Funded through the provider’s retained earnings, the 57,000 square foot site has been designed with durability, efficiency, and sustainability in mind. “The new Clearwater Gas campus features enhanced building elements, mechanical and electrical systems, and space planning to create a flexible and effective location with a minimum 50-year service life,” Chuck revealed. “Sustainable design features include a main

building oriented on the site to maximize daylight on the North and South facades; membrane roofing with a light-color, low albedo surface to reflect heat and reduce the cooling load; interior lighting controlled by occupancy sensors that reduce energy use when rooms are vacant; and finally, gas-fired equipment providing chilled water for highefficiency air conditioning and humidity control.” The new campus was designed to meet CGS’ infrastructure needs and the day-to-day functional needs of 100 employees. Chuck made it clear that the functional business needs of its employees are critically important to motivate and retain good people to support the success of any gas utility. “The ultimate goal is to attract and hire

RINNAI AMERICA CORPORATION Rinnai America Corporation, the brand leader of tankless water heaters, in partnership with Clearwater Gas, is bringing value to consumers by providing increased energy efficiency, cost savings, and premium hot water and home heating solutions. Our long-standing partnership helps grow Clearwater’s profitability by bringing new customers to distribution lines, creating conversion programs to drive gas adoption, adding additional gas burner tips to homes, and developing long-term customer retention. Through Rinnai’s builder relationships, within residential new construction (RNC), new natural gas communities are being developed with a new emphasis on innovative solutions for multi-family developments. Commercial businesses are facing difficult financial times, requiring a demand for energy cost reduction, reduced maintenance, costs, redundancy, and reliability; Rinnai commercial water heating products meet these needs. Commercial businesses can make confident decisions, with complex solutions, utilizing Rinnai’s free Application Engineering service, providing complete design and sizing of projects with a 100 per cent guarantee.

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individuals that desire a long and healthy career in the gas industry,” he remarked. “After many years of obstacles with hiring, specifically salary-based issues, the City of Clearwater’s Human Resources department decided to conduct a much-needed classification and compensation review. The results of the review showed that about half of the City of Clearwater positions (in comparison to similar jobs) were behind market. We desire to recruit and retain quality staff and we are unable to do so if half our positions are being paid behind

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the going market rate. To fix the issue, the city council agreed to spend more than $3 million last year to boost the salary ranges for positions that fell below market to where they should be and to address the proper placement of employees in pay ranges based upon years of service in the current position. As a result, this study truly helped the gas system with an ongoing challenge of hiring and retaining qualified individuals.” The importance of a skilled and settled workforce has never been more evident than in 2020 when, like firms across the globe, Clearwater Gas has been forced to contend with the negative impact of the Covid-19 pandemic. Limitations on face-to-face customer visits mean that the provider’s employees have been forced to conduct regular customer interactions over the phone, through email, and on social media. Delays in natural gas infrastructure installation and permit procurement have also been common challenges since the outbreak of the virus. “This period has required consistent messaging, as well as a huge dose of patience from our customers and employees,” Chuck said. “We had been told by customers in the past that hearing a human voice on the other end of a phone call is so refreshing versus hearing automated dialogue. Once you provide a detailed explanation, customers are a bit more


PROFILE

understanding and that’s where our team have stepped in. “Alongside this, Clearwater Gas System has been doing everything it can throughout 2020 to enhance the safety and wellbeing of its customers and employees. We are committed to providing a safe and reliable service and we do not anticipate any service disruptions at this time. Our internal teams are taking a number of precautionary measures, including wearing PPE to mitigate exposure to the virus, and we are regularly communicating with our employees, as well as posting Covid-19 updates on the gas website for all gas customers.” The focus on safety should come as no surprise to those well-acquainted with the way Clearwater Gas operates. Safety has always been the provider’s top priority, and among other initiatives, CGS operates an emergency gas dispatch center open 24 hours a day, seven days a week, which allows customers to report gas leaks and other gas-related concerns. “Clearwater Gas System is committed to taking every precaution necessary to protect gas lines and ensure a safe environment for our workforce and the general public,” Chuck asserted. “According to the US Department of Transportation, pipelines are the safest form of energy transportation, but still, as a gas utility, Clearwater Gas System is regularly safety inspected by the Florida Public Service Commission and the Department of Transportation. As such, our safety measures include training for all gas sections, including Service and Repair, Installation, Cathodic Protection and Construction.” Having made it through the first half of a challenging year, Clearwater Gas is eager to develop the customer connections it has established over the past few years, while continuing to evolve and expand in the future. Chuck highlighted that the provider’s current partnership with Habitat for Humanity of West Pasco County highlights the firm’s ongoing dedication to maintaining strong customer relationships. Habitat for Humanity offers a unique and sensible formula that makes it possible for limited-income individuals and families to own a home they can afford. Clearwater Gas has, to date, provided natural gas service to 144 Habitat Homes in North Pinellas and Pasco counties. For Chuck and his team, it’s a sign of good things to come. “We feel confident that we will continue to grow at about eight per cent annually, which will possibly add another 10,000 customers in the next five years,” the Executive Director

CLEARWATER GAS SYSTEM

stated. “We also believe that our customers will show increasing interest in higher tech gas equipment like gas air conditioning, CHP energy systems, and desiccant systems.” No matter what else the future may hold, Clearwater Gas is determined to become a greener, more sustainable organization by the end of the decade. As well as employing practical initiatives such as paperless billing, CGS regularly shares several approved residential and commercial Gas Energy Conservation programs as tools to promote environmental sustainability practices. It all goes to bolster the provider’s efforts to provide energy savings to its customers while helping to create a cleaner planet. “Our overall message is that natural gas has been a game changer in American energy utilization,” Chuck declared. “When we explain our environmental strategies, we talk in terms of annual energy ‘savings’ when operating typical gas appliances such as water heaters and dryers. At current residential rates, natural gas is 65 per cent cheaper to operate versus electric energy and recent studies show that natural gas produces much lower emissions than those of other fossil fuels like coal or oil. Also, due to its higher efficiency, natural gas emits 52 to 56 per cent less GHG than coal for the same amount of electricity. At present, 130 City of Clearwater vehicles fuel at the CNG station on Hercules Avenue in Clearwater, as well as about 20 customer CNG vehicles. We believe that the consistent use of natural gas is a significant contributor to reducing pollution and improving the climate concerns of our world.”

Clearwater Gas System www.clearwatergas.com ......................................... Products: Natural and propane gas provider

ENERGY,OIL&GAS

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Technical wizardry

Renowned for its highly technical approach to every project - no matter how big or small - ZAP Engineering and Construction Services is a full-service

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engineering and construction management firm, with a major emphasis on the oil and gas industry. Founded in 2001 by Steve Tzap, ZAP was established after its founder saw


PROFILE

ZAP ENGINEERING AND CONSTRUCTION SERVICES

Fostering relationships with our clients has been the growth engine for our business and I think that will continue to be the case,” Shane reports. “Our focus is not on getting more business from new clients, our focus is really on grasping an opportunity to execute a project, showing what we can do on a small scale, and then from there, we usually take on more and more responsibility for that company

a need in the market for a process-centric engineering firm to support the industry. “Steve really wanted to approach things from a heavy process perspective to provide

engineering solutions for operators,” explains ZAP’s Vice President of Business Development, Shane Wilson. “He grew the business from one person to the 150 people ENERGY,OIL&GAS

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we have today, spanning all major engineering disciplines. Following Steve’s lead, we still have a process-centric focus today.” With an emphasis on engineering, ZAP brings its technical expertise to a variety of EPC projects. Thanks to its full EPC capabilities, the company is able to perform all design and engineering in-house, before project managing contractors and vendors in the execution phase. “We are unique, I believe, in the larger EPC space,” Shane says. “When we are bidding on EPC projects, we tend to be competing with construction companies that have an engineering group to support their construction efforts. On the other hand, we are primarily an engineering company that leverages our engineering experience, as well as our ability to manage and schedule EPC projects. We do not have a construction arm; we contract all of that out, so it forces

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us to do complete and accurate engineering, while scheduling and planning very detailed scopes of work for our contract partners. When we execute an EPC project, we track the development daily, with a tremendous amount of KPIs and metrics, to ensure that we react quickly to any issues. It’s been a very successful philosophy and approach for us.”

Rapid expansion Serving both midstream and upstream markets in the oil and gas industry, ZAP’s processing engineering department continues to be the largest group within the organization, so it is no surprise that the firm shines most brightly on heavy process, highly technical projects preferred by the company’s founder. Capable of servicing a wide range of requests, from small process related studies to large turnkey ventures, ZAP’s first two EPC contracts arrived in 2010, transforming the firm from a pure engineering business into a full-service provider. “In 2010, Frank Lousberg – now company President – encountered a client that felt the cost to design and build their compressor stations was not competing with some of their rival companies,” Shane relates, “so they came to ZAP and asked us to do some front-end engineering and design with a total install cost estimate for the two stations. “Frank found that ZAP could build these compressor stations and still meet the company’s specifications, for significantly less than it had been costing them in the past. At that time, the most senior person in that organization turned to Steve Tzap and asked him if he would perform EPC work for that cost and Steve agreed. A commitment was made and we executed both of those projects on time and on budget. That was really our primary entry into the EPC space and we have continued to foster that capability as we have grown over the last ten years.” ZAP’s growth over the last decade has been substantial and even included a two-year period where the firm tripled in size. Shane believes the rapid expansion is the result of numerous factors. “As the US oil and gas market has expanded over the years, we have ridden that wave in some regards, so that has definitely helped our business,” he states. “We’ve also applied our skillset to other industries, so that has allowed us to grow as well. Part of our business strategy right now is to diversify. We believe that we’ve honed skills in the oil


PROFILE

ZAP ENGINEERING AND CONSTRUCTION SERVICES

and gas industry that is directly applicable to other sectors too, particularly those that are highly technical and process-centric. I think it all comes from the foundation of our core values as a company and bringing in real talent. I am currently working around some of the smartest, most driven people that I have encountered in my career.�

Adaptable and agile Strong client relationships have been vital to the company too. As ZAP has strengthened connections with some of its core customers, the firm has been offered opportunities on increasingly large projects and broadened its capabilities as a result. Many of the company’s current clients have been ZAP customers since the business started in 2001. MMR GROUP, INC.

MMR appreciates its decade-long relationship with ZAP Engineering & Construction Services. This partnership has led the company to Texas, New Mexico, and Colorado to successfully perform electrical and instrumentation services on over 30 projects. MMR, the largest open-shop electrical and instrumentation contractor in the nation, serves clients in the chemical and petrochemical, oil and gas, industrial manufacturing, power generation and power development markets. MMR provides services to clients in the industrial sector, including instrument installation and technical services, electrical construction, power distribution, enhanced panel and modular control building services, telecommunications and security systems, commissioning and start-up assistance, power development and maintenance.

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“Fostering relationships with our clients has been the growth engine for our business and I think that will continue to be the case,” Shane reports. “Our focus is not on getting more business from new clients, our focus is really on grasping an opportunity to execute a project, showing what we can do on a small scale, and then from there, we usually take on more and more responsibility for that company.” “Due to the size of our business, and with the leadership we have in place, one of our coolest advantages is we are a highly adaptable and an agile option for our clients,” adds Mechanical Engineer and Business Development Manager, Evan Anundsen. “Every project is a little bit different and, on the whole, we are very good at being able to turn on a dime or make a quick change to handle whatever the client needs.”

Serious about safety Among ZAP’s current projects is the construction of a cryogenic gas plant in North Dakota. Contractual obligations held by the client mean that ZAP has been forced to act quickly throughout the development, but the company is well on track with the

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plant’s aggressive schedule. A hallmark of the way ZAP runs its EPC projects, proactivity has played a key role in the North Dakota scheme’s success. “We want to do as much front-end engineering as possible on our EPC projects,” Shane reveals. “We were shortlisted by this particular client and when they called us in for a final interview, we let them know that there were four mechanical designers in our office working on their project as we spoke and the client was really surprised. Our reply to them was, ‘in order to hit your schedule, we cannot lose a single day’. I think that really speaks to our customer focus. We will always do everything in our power to ensure their success, which, in turn, ensures our success. We are willing to take calculated risks in order to achieve our goals.” One area in which the company is not willing to take risks is Health and Safety. Earlier this year, ZAP, along with its partners at Schwob Energy Services and MMR, celebrated 50,000 safe man-hours for a series of compressor stations in Southeast New Mexico. The achievement is evidence of ZAP’s treatment of safety as not only a priority, but a core value.


PROFILE

ZAP ENGINEERING AND CONSTRUCTION SERVICES

ZAP Engineering and Construction Services “We relate quality with safety,” Shane declares. “Safety is one of the top things we vet when we are evaluating potential contract partnerships with a construction company or a vendor. It’s something we take very seriously. All our engineers go through safety training and I think that we set that expectation from the first day they walk into our office. It goes all the way up to our President and CEO, where they are seeing everything from reported near misses to first aid data, so we are tracking leading indicators when it comes to the safety of all of our construction projects. Again, it goes back to our client focus. They are operating, managing, and running gas plants, compressor stations, and wellhead facilities; safety is paramount to them, so it inherently becomes paramount to us.”

the minerals processing sector, so that seems a logical fit for our expansion. We’ve been increasing those capabilities, as well as looking into other areas of the energy sector.”

www.zapecs.com ......................................... Products and services: Detailed engineering, design and construction management

Expansion plans Driven by its long-standing client relationships, process heavy approach, and core values of accountability, mutual respect, quality, and execution, Shane expects ZAP’s growth trajectory to endure well into the future. Though the company will continue applying its skillset to the oil and gas industry, Shane believes that other sectors could also benefit from ZAP’s expertise and that, as a result, diversification is inevitable. “There has been some growth in the mining and minerals processing industry, so we are working on more and more projects in that area,” he remarks. “A number of the leaders in our company have a background in ENERGY,OIL&GAS

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Clean

energy revival

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PROFILE

CADENT GAS LTD

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CADENT GAS LTD

Officially formed in 2017, when National Grid sold off its gas distribution business, Cadent is the company responsible for transporting gas to over 11 million customers in the UK. Managing a network of over 82,000 miles of pipes, Cadent operates and maintains the country’s largest gas distribution network, and today represents four of the UK’s eight gas distribution networks, offering coverage to North London, the West Midlands, North West, and the East of England. With more than 4000 employees to its name, Cadent looks after the main gas pipe that supplies local areas in the abovementioned regions, as well as the smaller pipes branching off it, which bring gas directly into homes and businesses. The company also maintains, repairs and replaces gas pipes to ensure a safe and reliable flow, and manages the National Gas Emergency Service for all gas customers in the UK. That means, if something was to go wrong, Cadent is the first point of call to ensure that all issues are dealt with calmly, quickly and safely. The services that Cadent provides directly to homes can be separated into three categories; connections, disconnections and alterations. Cadent provides its new domestic gas connection service to customers, taking pride in the fact that it understands the importance of making this as straightforward as possible. Fortunately, Cadent’s friendly,

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helpful and knowledgeable team is passionate about helping customers through this process. It is for this reason that, every year, some 10,000 new homeowners choose Cadent to connect them to its gas network.

Customer satisfaction Cadent is also proud to offer a comprehensive gas disconnection service. The company recognizes that there are various reasons that a customer may need their gas to be disconnected. This could range from simply no longer requiring gas, through to a property being demolished. Whatever the need for disconnection, Cadent’s dedicated team ensures that its customers’ needs remain at the heart of its services. Lastly, when it comes to gas alterations, Cadent’s customers most commonly use this service when there is a need to move a relocate a gas meter, or if pipes need moving to a more suitable location. This can be as a result of renovation works or an extension to a property, or simply because said meter would not otherwise be easily accessible. As well as home customers, Cadent also provides its services to businesses within London, the East of England, the North West, and the West Midlands. Again, whether it be a connection, disconnection or an alteration service that a business requires, Cadent understands the importance of delivering complete customer satisfaction. As


soon as a business quote has been accepted and paid for, its delivery team begin to plan the work, and works will typically be completed in approximately six-to-eight weeks, with Cadent promising to always offer the earliest date available. While local authority restrictions can sometimes apply in certain areas, or it may require road traffic management permissions which can sometimes impact delivery timescales, its team makes it a priority to ensure that the customer is always kept up to date and well informed. For Cadent, innovation sits at the heart of its activities. To the company, this means doing things differently to benefit its customers and the environment. By

embracing innovation, it can successfully identify the most up-to-date tools and techniques to help keep gas flowing safely, reliably and with minimal disruption to end users. Cadent takes tools and ideas from initial concept through feasibility testing, and all the way to trials, in order to ensure that they are fit for purpose and – most importantly – can deliver real value to its customers.

Innovative approaches Cadent works collaboratively with the other gas distribution networks on individual projects and shares learning from all of its projects. Working together has been shown to help its customers benefit from the sharing

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CADENT GAS LTD

of effective new ways of working and future technology. For example, the company works in partnership with EIC to bring forward new innovations and technologies, from small to medium enterprises, from around the world that could potentially be applied to the gas network. Meanwhile, the Gas Network Innovation Strategy has been developed by all of the gas distribution networks and National Grid, bringing together all of the most important challenges and opportunities facing the UK’s gas transmission and distribution networks, and setting the foundations for how Cadent and its peers innovate. Working with its partners across the industry, the company innovates to tackle several important challenges. One is consumer vulnerability, whereby it explores how best to support the needs of consumers in vulnerable circumstances today and in the future, ensuring that everyone can experience the benefits of the energy transition, and that any adverse effects of change are minimized. Others include, facilitating and accelerating the UK’s move to net zero greenhouse gas emissions before 2050, developing and implementing industry leading techniques for optimizing assets and practices for energy networks, and developing and

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testing solutions to increase the flexibility, transparency and efficiency of the energy system. Keeping its communities safe and warm is – unquestionably – the primary goal of Cadent, however, it has also created for itself an impressive track record over the years of operating as a responsible business, from its regulatory commitments and practices, to its social actions. Since March 2017, Cadent has raised over £200,000 for its various charity partners, its employees have given over 1369 hours of their time to community projects since August 2017, and it is estimated that the company has made a positive impact on over 128,000 people as a result of its volunteering program.

Critical industry Through its community investment, and the actions it takes, Cadent strives to enhance the lives of people in the communities in which it lives, works and impacts through its networks. Its responsible activities help Cadent to create closer connections locally with its customers, and it recognizes the fact that it plays an essential part in today’s society. To this end, it cares deeply about how its operations affect its stakeholders, employees and customers.


One of its goals is to be a leader in raising awareness of carbon monoxide safety, helping to prevent any instances of carbon monoxide poisoning in its networks. Through various carbon monoxide initiatives, it is able to extend its reach far and wide to spread this vital message. Strengthening its reputation through such actions means Cadent’s presence in communities is reliable, valued and trusted. By focusing on why and how it operates responsibly, the company can translate the values at the heart of its organization, and live by them for the mutual benefit of its employees, its stakeholders and the 11 million customers it serves. Turning to both current and future affairs, energy networks like Cadent have been recognized as critical industries throughout the Covid-19 outbreak. During the lockdown, the company stepped down its planned customer facing gas mains renewal work, only focusing on critical projects and emergencies. To keep the gas flowing safely – both now

and in the years to come – the company has carefully begun to restart its construction program to replace ageing metal gas mains with tough new plastic ones under an initial three-month program of works. This will be subject to permission from councils for Cadent to work in the streets, and to the evaluation of feedback from its customers.

Comprehensive business plan The safety of Cadent’s customers and its teams has always been absolutely non-negotiable. Every year, it replaces around one per cent of the 80,000 miles of underground mains it looks after, as they reach the natural end of their safe working lives. Some of these are old pipes, and showing signs of age, thus they must be replaced so as to remove the risk of gas leaks, and ensure a safe and reliable gas supply. As would be expected from a responsible business, Cadent has changed the way that it undertakes such tasks, so as to take account of all guidelines associated with Covid-19.

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CADENT GAS LTD

If colleagues need to enter people’s homes, they will be wearing all the appropriate protective clothing to keep those living there safe. This will include disposable gloves, masks and safety glasses. They will ask residents to stay in a separate room. They will work as efficiently as possible and wipe down

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any surfaces they have touched before leaving the property. Colleagues will observe social distancing from the public and from each other. However, where work tasks require colleagues to work more closely together, contact between colleagues will be kept to a minimum, they will wear the appropriate PPE


for the task, and follow good hygiene rules. Moving forward, Cadent has formulated a comprehensive Business Plan to cover the years of 2021 through to 2026. The plan sets out how the company intends to keep energy flowing to 11 million homes and businesses through targeted investment and operational management, while also delivering enhanced customer experiences and facilitating the urgent actions needed to tackle the UK’s net zero climate change ambition by creating a pathway to clean gas. Further to this, Cadent intends to deliver a consumer value proposition with an estimated net social value of £537 million, deliver a real bill reduction of over ten per cent for the average customer, and improve services for less than 33p per day, per customer.

Practical pathways Cadent is excited about the opportunity that the next decade offers to significantly transform and refocus the long history of custom and practice, to deliver more for its customers, communities, colleagues and stakeholders. At the same time, it recognizes the critical need to address the urgent challenges of climate change action to deliver net zero emissions for the benefit of both current and future customers. It should not be forgotten, however, that the scale of investment and change needed to deliver this in an affordable, secure and sustainable way will not be inconsiderable, and that government, regulators and businesses need to strike the right balance between delivering the critical long-term needs of future consumers with affordability for existing ones. For its part, Cadent plans to continue its leading role in driving and shaping practical ways to deliver clean gas to address the UK’s net zero emissions goal. To date, it has been at the forefront of developing practical pathways for clean gases such as biomethane, BioSNG and hydrogen through landmark innovation projects, working closely with its industry colleagues. The company wants to continue to invest in making this a reality as soon as possible, given the urgency for action and the wider societal benefits that it will bring. Cadent has set out how it will continue to facilitate and support clean gas resources to connect its networks, while also setting out how it plans to support Ofgem, and national and local government in moving to net zero emissions. This ambition includes finding

a solution to progressing with pioneering new projects such as HyNet – where the company is part of a consortium of different commercial, academic and entrepreneurial organizations working together. This will create a clean gas pathway using hydrogen, in order to decarbonize the North West of the UK by the end of the next decade. It is estimated that this will also help to create 5000 local jobs and stimulate industry, whilst delivering significant carbon savings of around one million tons at a low cost, compared to alternatives. The company wants to be one that is known for its forward thinking and leadership – especially in rising to meet the challenges of a net zero emissions country – and that delivers for all of its customers, particularly those in vulnerable situations. Cadent’s plan for 2021-2026 is an important step on this journey, and will help it to begin to transform experiences and set long-term ambitions for the outputs that it will deliver for its customers over this period of time.

Cadent Gas Ltd www.cadentgas.com ............................................ Services: Gas distribution network operator

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Family matters

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PROFILE

Once just an idea bounced around its founder’s kitchen table, Miller Industrial Service Teams (MIST) was established by Jim Miller Sr in 2004. Still family owned and operated after 16 years in business, the firm specializes in the installation, revamp, and routine maintenance of tower internals and has experience working with some of the largest petro-chemical companies in the world. On top of an exemplary record of safety and quality, over the years MIST has become renowned for its warm and welcoming company culture. Safety Director Rich Hoelke Jr suggests that it all stems from the way the firm treats its people. Though the company’s workforce might be populated by Jim Sr’s sons, grandsons, and in-laws, to MIST, family means more than that. Not simply a word to describe blood relatives, Jim says family is about treating people better. “When we started this business, we wanted to make sure we always treated our employees better than we had ever been treated when we worked for other companies,” Rich explains. “That approach means a lot to us. When we branched out from the family and hired our first full-time employee, we made sure he was the person we wanted him to be. We wanted him to be a family man. We wanted him to be a part of our family and he still is. Now our safety manager, he attends holidays with us, and his family joins us on Christmas Eve. We like to treat all our people in the same way. We think of ourselves as a big extended family.” Based in Ohio, MIST began life as an organization focused solely on completing maintenance and modifications for towers in oil refineries, chemical plants, and steel mills. Constantly developing its diverse portfolio of services, MIST has since grown into a turnkey maintenance contractor with the ability to work on reactors, drums, boilers, exchangers, and piping. With a client base that includes large companies like PBF Energy, for whom MIST is currently working in three facilities, multinational energy firm Phillips 66 remains the company’s largest customer. “We have done a lot of big projects for Phillips,” Rich states, “such as boilermaker work and pipe fitting at the P66 Bayway site in New Jersey. We have also done work for them in Wood River, Illinois, where we have been the general contractor. “At Wood River, we performed the plant’s first turnaround in the brand new coker unit. It was back in 2011 and we had over 800 employees on the job. It remains the biggest job we have ever

done in terms of manpower. It was all completed in a very short period of time, despite a host of unknown factors. I would say that it’s one of our most memorable projects.”

Preferred contractor Although the quality of MIST’s work attracts interest from a wide array of major corporations, the company is also proud to work with less prominent firms. “We have the big customers like Phillips 66, but we also have smaller ones like Crystal Clean in Indianapolis. We work on heat exchangers for them and we have another little company in Cincinnati that we did a flare tip for. No job is too small for us. We have always said that nothing is ever too small. We are willing to take on projects that some of these bigger companies won’t even look at.” Never short of work, in Spring 2019 MIST completed a project at Energy Transfer’s Marcus Hook Industrial Complex in Pennsylvania. This was followed by a turnaround for Toledo Refining Company in early 2020. With two turnaround projects already scheduled for 2021, MIST has plenty of new work on the horizon. “We have a couple of projects coming up at Bayway this summer and fall,” Rich reveals. “We are currently waiting on PBF to confirm some work in California, but the biggest news is that we have just signed another companywide contract with Phillips 66 to be one of their exclusive maintenance contractors. A multi-year deal, it will, once again, make us one of their preferred contractors.” One element of MIST’s enduring appeal as a contractor is the company’s impeccable track record for safety. Committed to achieving a level of safety excellence in all projects it undertakes, MIST views every accident as preventable. Since its founding in 2004, the firm has received

MIST INC.

When we bring somebody new in, we pair them up with someone experienced to see how they work. From their very first day, we ask questions like: Do they work safely? Do they do quality work? What is their level of knowledge? When we know the answers, we look to train them up and groom them for the next step. The aim is for people who walk through our doors to become foreman, general foreman, and superintendents

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PROFILE

MIST INC.

MIST Inc. www.mistinc.com ............................................ Services: Turnkey maintenance contractor

safety awards from Phillips 66 across multiple locations, as well as Sunoco North East Refining for achieving zero recorded accidents from 2005 to 2010. “Safety is extremely important to us,” Rich declares. “As a business with a strong family culture, we don’t want to see anybody go home any different from how they came to work that day. After every incident free week, we buy lunch for our employees on Saturday. We put a lot of effort into bringing in good catered food and we also give away hats and shirts and cash prizes. It’s one of those things that everyone really looks forward to. Our people know that if they have a good safe week, we are going to have lunch on Saturday. Since the business started, we’ve been budgeting for this initiative. It’s not something we have built into our price. We happily use our own funds to make this happen because it is important to us and it is important to our guys.” In many ways, MIST is an industry outlier. The company’s ability to stay so deeply familyorientated while growing its turnover to $50 million a year is a feat rarely accomplished. MIST’s mission to embody the venerated ideals of teamwork, honesty, hard work, determination, and responsibility in its work is well publicized, but what have been the more practical factors in the firm’s unabated success? “I think one thing companies appreciate about us is the way we plan our jobs,” Rich claims. “We give every job equal care and attention, so we always make sure that somebody from the ownership group is onsite. It means that, if a decision needs to be made, nobody has to make a phone call or double check with management; we have somebody right there to make any decision at any time. Clients respect that. They don’t want to waste time sitting around, waiting for an answer. “Something else we’ve been very good at over the years is tooling,” he adds. “We are highly focused on making sure that our workforce has everything they need to do a great job. If you have people hanging around, waiting for tools, it is costing you money. A lot of the bigger companies have to go through such a long purchasing process when they want to buy equipment, but we are always right there and we can make the call immediately and get what we need.”

Growth trajectory MIST’s streamlined chain of command, and comparatively small size compared to some of its competitors, continue to benefit the firm

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today. “We are able to make all our decisions without going through a board or somebody in another state. I really think that our management, the way we run our company, and how we plan our work has played a vital role in our trajectory of growth. Most of our competition is a lot bigger than we are and they have huge capabilities, but they still can’t do what we do. That’s what makes us special and, as a result, we will always be an attractive proposition as a provider of industrial services.” Though it is clear that the company has profited from a variety of best practices, for MIST, everything comes back to people. In order to ensure new employees enjoy a smooth transition into the MIST way of life, the firm uses statistics to formulate an intelligent training program that includes a 30-hour Occupational Safety and Health Administration course, as well as annual refresher sessions and top-ups. Not only is MIST’s workforce first aid and CPR trained, but staff are also taught about job-specific hazards, policies, and procedures. The time and attention the firm devotes to making its workforce some of the industry’s safest, most-knowledgeable, and most highlyskilled workers is yet more evidence that as a MIST employee, you are more than just a name or number. “When we bring somebody new in, we pair them up with someone experienced to see how they work,” Rich remarks. “From their very first day, we ask questions like: Do they work safely? Do they do quality work? What is their level of knowledge? When we know the answers, we look to train them up and groom them for the next step. The aim is for people who walk through our doors to become foreman, general foreman, and superintendents. After finding out what they know, we teach them something new. We mentor our employees because we care. We want them to be the best versions of themselves.”


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Profile for Schofield Publishing Ltd

Energy, Oil & Gas Issue 185 October 2020  

The latest edition of Energy, Oil & Gas

Energy, Oil & Gas Issue 185 October 2020  

The latest edition of Energy, Oil & Gas

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