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JUNE 2013 SPECIAL EDITION
The Change
AGENTS
Four leaders reinvigorate the region’s power and water sectors
CONTENTS June 2013 4/
editor’s note
12 / Rounup
8/
ADvisory board
14 / In the region
10 / mosaic
COVER STORY The Change Agents Four leaders reinvigorate the region’s power and water sectors.
17 / At large
22
Water/Wastewater
industry notes
Integration’s big value
21/ Supply Shock 20/ Passive savings
46 on the record
Market Report
Lighting’s trendsetter
34
36
George Bou Mitri, General Manager - Middle East, Africa and Turkey, GE Lighting on how energy efficient lighting drives the creation of environmentally sustainable cities.
Schneider Electric’s Hermann Wartinger and Ahmed Fawzy on how EcoStruxure integrated system architectures make water and wastewater management efficient, productive, and green.
PV’s organic generation
48
Dr Harry Zervos of IDTechEx examines the unique selling points and challenges for Organic Photovoltaics (OPV) in the next decade.
ROUNDTABLE
PE Pipes
Lighting the path to 2030
Go trenchless with PE
Highlights from the GE Lighting round table on sustainability challenges in the Middle East lighting sector.
Tough PE pipe materials are ideal for trenchless installation.
50
ASSET MANAGEMENT
ON SITE
Maxim(o)m Impact
Jebel Ali ‘M’ Station
Asset management software like IBM Maximo can help the region’s utilities maximise the value of their asset investments.
The largest power and water desalination plant in the UAE
40
52
58/ Cloud control for buildings
66/ FLIP SIDE
Finding the money The convergence of IT and building automation is expected to revolutionise the building controls industry in the days to come.
Quest for Arctic passage
Irish quest for a world first Arctic Passage highlights disastrous impact of global warming and renewable energy’s mitigating role.
SPOT LIGHT
56/ MARKET PLACE
6/ NYNAS 57/ HANOVIA
• Schneider Electric • Omicron • Singer Valve
60/ TENDERS & CONTRACT 65/ EVENTS POWER & WATER MIDDLE EAST / JUNE 2013
3
EDITOR’S NOTE
Publisher Dominic De Sousa Chief Operations Officer Nadeem Hood • nadeem.hood@cpimediagroup.com Associate Publisher Liam Williams • liam.williams@cpimediagroup.com
Anoop K Menon anoop@cpi-industry.com
Editor Anoop K Menon • anoop@cpi-industry.com Commercial Director Gina O’Hara • gina.ohara@cpimediagroup.com Tel: +971 4 375 1513 Director Harry Norman • harry.norman@cpimediagroup.com Tel: +971 4 375 1502
The Change Agents
I
f you thought the title of this edit is unusual, you are right to think so. In a break with tradition, we have put faces on our cover. In the past six years, I can count on my fingers the number of times we featured people on our cover, and only when the story was compelling enough. This time we have put together a set of compelling interviews with spokespersons of companies that, we believe, are harbingers of change in the region’s utility business, breaking new grounds. FPI is among the world’s largest manufacturers of fibre glass pipes; when the solar PV industry worldwide stumbled and fell, First Solar continued to grow and invest in its thin film technology going against the convention of betting on silicon; having tasted success in the region’s IWPP sector, Sembcorp is pioneering the centralised utilities model in the region as a cost efficient and environment friendly utility option for the region’s energy-intensive industrialisation programme; there is also Dubai-based Al Taaqa Global, which is pursuing global ambitions in the area of temporary independent power plants from 20 MW upwards. These companies are united in their desire to be the best in the world, and either base themselves in the Middle East or use their local experience to achieve their ambitious goals. I certainly enjoyed meeting and interviewing the spokespersons of these companies, and I hope you find their stories equally interesting. We have re-launched H20 Water Awards as Power & Water Middle East Awards this year. This is a paradigm leap forward for Middle East’s longest running utility industry awards, given the historically tight integration between water and energy production. The new name is a solid acknowledgment of the significance of this integration and its strong linkages with the region’s economic prosperity, social advancement and sustainable growth for the present and future. We will be making more announcements in this regard very soon. Meanwhile, I hope you enjoy reading this issue.
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POWER & WATER MIDDLE EAST / JUNE 2013
Business Development Manager Annie Arif • annie@cpimediagroup.com Tel: +971 4 375 1509 Marketing Manager Jasmine Kyriakou • jasmine.kyriakou@cpimediagroup.com Tel: +971 4 375 1506 Senior Designer Marlou Delaben • marlou.delaben@cpimediagroup.com Designer Cris Malapitan • cris.malapitan@cpimediagroup.com Digital Services Manager IT Department Troy Maagma • troy.maagma@cpimediagroup.com Web Developer Waseem Shahzad • waseem.shahzad@cpimediagroup.com Production James P. Tharian Rajeesh M Circulation Rochelle Almeida rochelle@cpidubai.com USA and Canada Kanika Saxena Director - North America 25 Kingsbridge Garden Cir. Suite 919 Mississauga, ON. Canada L5R 4B1 kanika@cpi-industry.com tel/fax: + 1 905 890 5031 Published by: Head Office PO Box 13700 Dubai Media City,Off. 214 Tel: +971 4 375 1500 | Fax: +971 4 365 9986 www.powerandwater-me.com Printed by: Printwell Printing Press LLC © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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Spotlight
Insulating oil analysis and its role in transformer condition monitoring Bruce Pahlavanpour, Nynas AB
O
il and paper have been used as insulating materials in oilfilled electrical equipment for nearly a century. Despite the apparent mechanical weakness of oil and paper they are effective insulators, especially in combination. This is exemplified in the observed synergism of paper impregnated with oil: the dielectric strength of paper and oil on their own is 40 and 12kV per mm respectively, however their dielectric strength in combination is 64kV per mm, which is significant improvement.
Even in ideal conditions, oil and paper will degrade, or ‘age’, as their useful service lives is finite. The actual processes involved depend on the operating conditions of the equipment, but the rate of ageing is normally a function of temperature and moisture. Both oil and paper will age rapidly at high temperatures and moisture acts as a catalyst for the ageing of oil. There are also other catalysts present in a transformer which are responsible for oil ageing; these include copper, paint, varnish
At Nynas, we’re passionate about everything to do with power.
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POWER & WATER MIDDLE EAST / JUNE 2013
and oxygen. The principal mechanism of oil ageing is oxidation, which results in acids and other polar compounds being formed. These oxidation products will have a deleterious effect on the paper degradation processes. Transformer condition Monitoring Early in the history of oil filled electrical equipment, it was realised that an explosion in a transformer was caused by the rapid evolution of gases formed by deterioration of the insulation, but it was not until the early twenties when Buchholz
Spotlight
developed his gas and oil actuated relay. Since then it was accepted that the action of electrical or thermal stress in oil would cause sufficient deterioration to evolve gases which would then dissolved in the oil. Analyzing gases dissolved in oil is widely used as a diagnosis method for oil filled transformers. This diagnosis method is effective for preventing accident and transformer failure. Condition assessment and monitoring techniques have received a technological boost in the last
few years but at the heart of it is a technique dating back several decades. Dissolved gas analysis (DGA) is still the best technique for detecting abnormalities in transformers. The sampling of oil and subsequent analysis for dissolved gases is well defined in IEC60567. The interpretation of the results is less straightforward as there are recognised standards and several other publications, which may be used for interpretation of DGA results. Whilst they may have
similar approaches they may not always lead to the same conclusion. Gas concentration ratio is the most commonly used method. Analysis of dissolved gases in oil is widely used as a diagnosis method for oil filled transformers. It is relatively simple and cheap to use. This diagnosis method is effective for preventing accident of transformer. Although DGA is an extremely valuable tool with many applications but as in any single test procedure, it does not furnish a total picture of the condition of transformer.
Need to talk to a transformer oil supplier who understands your business? One who’s local enough to be near you, yet global enough to have the expertise you need. Get in touch. www.nynas.com
POWER & WATER MIDDLE EAST / JUNE 2013
7
Advisory Board
8
Sarfraz Dairkee
Afnan Din
GM - Corporate Development & Engineering MAHY Khoory & Co
Vice President & Process Manager HEADWORKS MENA
ENG. Hassan Mohammed Makki Director of the Drainage and irrigation network department: Dubai Municipality
Jeremy Llewellyn
Graham R O’Geran
Nick PARTON
Chief Executive Officer Blue Gold Technology
Secretary General International Cable Association
General Manager MEA MEGGER LIMITED
POWER & WATER MIDDLE EAST / JUNE 2013
POWER & WATER MIDDLE EAST / JUNE 2013
9
MOSAIC
USD1.35
400 PPM
USD0.194
On May 9, 2013 the daily mean concentration of carbon dioxide in the atmosphere of Mauna Loa, Hawaii, reached 400 parts per million (ppm) for the first time since measurements began in 1958. This marks an important milestone because Mauna Loa, as the oldest continuous carbon dioxide (CO2) measurement station in the world, is the primary global benchmark site.
Rate per unit of solar power at which ACWA Power will be selling power produced from the 160 MWe Ouarzazate CSP IPP Project. Morocco plans to install at least 2,000 MW of solar power capacity by 2020 at five sites that will account for 14% of total power generating capacity by the end of the decade.
kw/hr
TRILLION
Size of contracts in the GCC projects industry in 2013, significantly higher than the USD730 billion total last year. Source: MEED
SR300 BILLION
Investments needed by the Saudi Electricity Co (SEC) to help produce 30,000 MW annually to meet Saudi Arabia’s growing electricity demand, Arab News has reported.
Others 9,281 10.92%
Industrial 2,622 3.09%
Commercial 23,931 28.17%
PROJECTED GLOBAL SPENDING OF POWER PLANTS IN 2013 SUBJECT
METRIC
NEW PLANTS
EXISTING
TOTAL
Installations
1,000 MW
73
1,176
1,249
# of units
730
23,520
24,250
Hardware Sales
$ millions
36,000
10,000
46,000
Instrumentation
$ millions
1,440
900
2,340
Consumables
$ millions
1,200
30,000
31,200
Services
$ millions
3,000
40,000
43,000
Total Expenditure
$ millions
41,640
80,900
122,540
Source: McIlvaine Utility Tracking System (www.mcilvainecompany.com
Residential 49,112 57.82%
Industrial 1,227 0.22%
Others 104,444 80.43%
Others 2,942 0.53%
Residential 446,372 80.43%
Source: Total
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POWER & WATER MIDDLE EAST / JUNE 2013
POWER & WATER MIDDLE EAST / JUNE 2013
11
ROUNDUP
Joe Hogan
CEO Hogan to leave ABB
A
BB Chief Executive Officer Joe Hogan has decided to leave ABB for private reasons. A date for his departure has not yet been decided. Hogan will continue to lead ABB until a successor is announced and has declared his commitment to a smooth transition. Hogan joined ABB as CEO in September 2008. During his time at the helm, ABB has invested about USD20 billion to strengthen the company. Major investments have been made in acquisitions and in R&D to help secure ABB’s technological leadership in power and automation. “Under Joe’s leadership ABB’s competitiveness has significantly improved by investing boldly in measures to drive growth and innovation, and by carefully managing costs,” said Chairman Hubertus von Grünberg.
Emerson Process unveils new facilities in Texas
E
merson Process Management has opened its new USD30 million Americas headquarters for valve automation technologies and a new, highly automated manufacturing facility in Houston to expand its services for the oil and gas and petrochemical industries. The new valve automation complex encompasses 215,000 square feet of office and manufacturing space. The manufacturing facility is the Americas World Area Configuration Centre and complements similar full-service facilities in Europe, Asia Pacific and the Middle East with manufacturing, assembly, integration of control packages, accessory and replacement parts stocking, and testing.
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POWER & WATER MIDDLE EAST / JUNE 2013
Drilling technology unlocks US oil reserves
IPEC awards circuit-breaker contract to ABB
N
A
ew technology is unlocking vast resources unreachable even a few years ago, reports Platts Energy Week. The US Geological Survey (USGS) in a recent report estimated the amount of undiscovered, technically recoverable oil in the fields that stretch over North and South Dakota as well as Montana at 7.4 billion barrels – more than double the estimate it made in 2008. The prior assessment did not include the Three Forks formation because no significant exploration had been done at the time. The USGS estimate of natural gas resources has nearly tripled to 6.7 trillion cubic feet.
Ahmad Bin Shafar CEO, Empower
Empower forecasts 350 MW energy saving
E
mpower, the largest district cooling service provider in the region, expects to save 350 MW of energy by the end of this year. In the Middle East, about 70% of total power consumption is spent on air conditioning. In 2012, Empower saved 320 MW, enough to power 65 buildings and had 400,000 RT (Refrigeration Tonnes) of total cooling capacity within the same year. “District cooling systems have many benefits, and they are very efficient in power consumption, which is absolutely crucial in this region,” said Ahmad Bin Shafar, CEO of Empower. Dubai’s energy demand rose by an average of 7.1% during Q1 of 2013, compared to the same period in 2012. Demand on the power supply network increased to 2,471 GW in March 2013 compared to 2,247 GW in March 2012.
BB has received a USD10 million order from IEPC for a project at Kuwait’s Ministry for Electricity and Water. The order includes Vacuum Circuit-Breakers (VCBs) and accessories. ABB has been working with its Kuwaiti channel partner IEPC (iep-kw.com) since 2007 to gain a foothold in the country’s electricity distribution market, which has traditionally been closed to foreign manufacturers. IEPC is Kuwait’s leading original equipment manufacturer (OEM) for low and medium voltage power distribution equipment. The order 4511 / 2012-13 is Kuwait’s largest ever for its distribution network and ABB’s successful bid will see its VD4 type vacuum circuit breakers installed into 500 distribution substations (3,300 units of breakers) rated at 11kV, along with switchgear panels and other equipment provided by IEPC.
DEWA launches Carbon Footprint campaign
D
ubai Electricity and Water Authority (DEWA) has launched ‘Carbon Footprint’ campaign to raise awareness of responsible energy consumption, while encouraging environmental best practices and reducing carbon emissions. As part of the campaign, DEWA statements will list facts and figures about how much carbon emissions each customer’s monthly energy usage generates. The campaign aims to raise awareness and encourage customers to reduce their carbon footprint in line with the Dubai Integrated Energy Strategy 2030, which aims to reduce demand for energy by 30% in 2030. DEWA is encouraging its customers to reduce electricity consumption, and use green products, such as energy-efficient light bulbs and eco-friendly appliances that reduce energy usage.
ROUNDUP
Headworks International promotes Afnan Din to Vice President
H
eadworks International has promoted Afnan Din to Vice President. Afnan joined Headworks BIO in 2010 as Vice President and Process Manager for the Middle East and North Africa (MENA) division. He was responsible for securing the first contracts for Headworks BIO in Saudi Arabia, Bahrain, and Egypt and has developed a healthy pipeline of projects for the company. Prior to joining Headworks BIO, Afnan worked for two of the largest and most well respected engineering consultants in the industry, MWH in the UK where he joined as a process engineer and then subsequently at Halcrow in Dubai where he was primarily responsible for developing Halcrow’s process capability and process team in the region. He brings to the table over 10 years of experience in the water industry in both Europe and the Middle East.
he Dubai Supreme Council of Energy (DSCE), United Nations Development Programme (UNDP), and Dubai Carbon Centre of Excellence (DCCE), extended an agreement under which they will work together to develop a comprehensive ‘State of the Energy Report’ about Dubai, which will be launched in October. “It is an honour to collaborate with the UNDP to issue the ‘State of the Energy Report,’ which covers all aspects of the energy sector, including investment opportunities, challenges, green technology, and sustainability,” said H.E. Ahmed Butti Al Mehairbi, Secretary General of the Supreme Council. “Adopting best practices across various projects in Dubai has contributed to positioning the Emirate as an international and pioneering hub in the field of sustainability.”
GE launches new low fouling RO membrane
Watersolutions AG receives ‘Distinction’ award
G
W
E has announced a new membrane, the AG LF series that purifies tough-to-treat water from industrial processes such as steel production, power plants and plating processes. GE’s new technology is a low-fouling reverse osmosis (RO) membrane that resists degradation from water containing bacteria, colloids and other materials that foul and shorten membrane element life. It features a unique coating technology that improves cleaning cycles, reduces pressure and reduces friction on the surface of the membrane, making it resistant to organic fouling. The new membrane can reduce the time between cleanings by up to 50%, although actual results will vary with specific application conditions.
The agreement was signed by HE Ahmed Butti Al Mehairbi, Secretary General of the Supreme Council, Waleed Salman, Chairman of DCCE, and Paulo Limbo, UN Resident Coordinator for the UAE.
Dubai to issue ‘State of the Energy Report
T
atersolutions AG has received the 2013 Water Technology Idol ‘Distinction’ Award from Global Water Intelligence for its Low Temperature Distillation (LTD) system. Presented at the 2013 Global Water Summit in Seville, Spain by Vicente Fox, former President of Mexico and CEO of Coca Cola Latin America, the Award was conferred following interviews by a judging panel composed of four Mark Lehmann experts from different sectors of the water industry and audience votes for the technology deemed to be most likely to live up to the presenting company’s expectations. “The support we received at the Technology Idol competition reflects the positive response we have received from companies around the world since we formally introduced our technology in late 2012, after proving the concept at a plant in El Gouna, Egypt. We are proud to be part of the solution towards achieving even greater reduction in energy requirements for water treatment,” said Mark Lehmann, Chief Technology Officer of Watersolutions. POWER & WATER MIDDLE EAST / JUNE 2013
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IN THE REGION
Bahrain EWA aims for smart grid IT project will accelerate EWA’s move towards smart grid and smarter energy and water services.
B
ahrain’s Electricity and Water Authority (EWA) has announced the Kingdom’s largest ever utility-based IT project which will enable the utility to automate key operational processes and transform overall performance in line with Bahrain’s 2030 economic vision. The project will entail the introduction of utility industry-specific solutions from SAP, including customer relationship management, billing, metering and network asset management. Key innovations include an integrated energy and water value chain with streamlined and mobile-empowered business processes enabled by SAP Utilities. EWA aims to speed up the billing process, mitigate disconnection problems, enhance fault detection capabilities and control customer demand and load profiles more effectively by implementing SAP. The project will accelerate EWA’s transition to a smart energy infrastructure that incorporates renewable energy and cuttingedge metering. Project implementation will be handled by SAP’s Field Services team. The project will help improve network reliability, preventive maintenance activities and outage responses time. “Sustainable development in Bahrain can only progress if we are capable of unlocking more efficient ways of capturing, managing and distributing electricity and water,” said His Excellency Shaikh Nawaf Bin Ibrahim Al Khalifa, CEO, EWA. “This requires awareness, determination and, crucially, it requires innovative technology capable of revolutionizing core processes. With our eye on Bahrain’s future generations, and the help of companies and collaborators like SAP, we are committed to stamping out inefficiency, minimising emissions, embracing renewable energy, and making the smart grid a widespread reality.” Energy diversification is top of Bahrain’s political agenda, with plans recently announced to kick-start two renewable energy projects in June.
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POWER & WATER MIDDLE EAST / JUNE 2013
The Noor 1 complex is set to develop into a 500 MW solar park
Construction starts on world’s largest CSP plant Noor 1 160MWe CSP plant with three hours of thermal storage is the first utility size thermal solar power project in Morocco.
T
he construction of the 160 MWe Noor 1 Concentrated Solar Power (CSP) Independent Power Project (IPP) was formally launched by His Majesty King Mohammed VI in the first half of May. The green field IPP is the first project for the Moroccan Agency for Solar Energy (MASEN) in a series of several planned developments at Noor 1 Solar Complex. The project is located in Souss-Massa-Draa, province of Ouarzazate in Morocco, approximately 200 km south of Marrakesh. The Noor 1 complex is set to develop into a 500 MW solar park incorporating several utility-scale solar power plants using various solar technologies. With three hours of thermal storage, Noor 1 is the world’s largest parabolic trough CSP power plant and the first utility size thermal solar generation project in Morocco. The IPP will be developed on a Build, Own, Operate and Transfer (BOOT) basis by ACWA Power Ouarzazate, which recently awarded the EPC contract to a consortium composed of Spain’s TSK Electrónica y Electicidad, Acciona Infrastructuras, Acciona Ingeniería, and Sener Ingeniería y Sistemas. The operation and maintenance will be undertaken by a consortium led by NOMAC, a subsidiary of ACWA Power. ACWA Power Ouarzazate is owned by ACWA Power, Saudi Arabia; MASEN; Aries and TSK both of Spain. The plant will commence commercial operations in the second half of 2015. MASEN will be the off taker of the power under a 25-year Power Purchase Agreement (PPA). The EPC contract has been structured to maximise economic value creation within Morocco by not just encouraging local manufacturing but also skills transfer, training and local capacity building. Thus, the EPC consortium will procure a significant part of the scope locally in Morocco. Up to 1,000 workers will be employed during construction and 60 during operation. ACWA Power will also collaborate with Moroccan companies, universities and research centres for knowledge transfer with an emphasis on localisation of technology and development of intellectual property. ACWA Power has already facilitated a joint R&D programme focussing on CSP between King Abdullah University of Science & Technology (KAUST) and Université Internationale de Rabat (UIR). Morocco currently relies heavily on coal and other conventional sources to meet its energy needs. With the deployment of CSP technology, the Noor 1 project will save approximately 470,000 tonnes of CO2 equivalent emissions annually.
IN THE REGION
The 25 MW power plant will help Oman’s grid cope with peak demand during summer
25 MW of temporary power in 96 hours Altaaqa Global installs fast-track temporary power plant in Oman
A
ltaaqa Global CAT Rental Power, a leading global power solutions provider, recently designed and installed a 24MW temporary power plant in the Sultanate of Oman. To meet electricity demands throughout the summer, the 24MW temporary rental power plant will supply power to the electricity grid at a time when there is a significant increase in the use of temperature control equipment, such as air conditioning and district cooling. Supporting the existing generating capacity of Oman, the interim power plant will ensure peak performance during the hottest months of the year. The entire plant took just four days or 96 hours to install. Peter den Boogert, Altaaqa Global’s General Manager for Business Development, said: “This reaffirms Altaaqa Global’s ability to install, commission and safely generate power within a matter of days. The full turnkey solution offers a complete package of power generators, transformers, fuel tanks, distribution panels, electrical accessories, and 24/7 CAT certified power engineers who will manage the temporary power plant.” “We are proud to deliver our temporary power solution to the people of Oman,” said Steven Meyrick, Managing Director of Altaaqa Global. “Our highly experienced rental power team coupled with Caterpillar’s power dense and fuel-efficient rental diesel generators are the perfect combination to provide grid optimisation and dependable supplementary power.” Robert Bagatsing, Altaaqa Global’s Marketing Manager, added: “We can deliver multi-megawatt rental power projects to any part of the world, from 20MW to 200MW. Catering to a wide spectrum of sectors such as power utility, government services, mining, industrial manufacturing, oil & gas, petrochemicals and construction, Altaaqa Global provides large-scale turnkey power solutions anywhere, anytime.”
DUBAL has also implemented the quick win initiatives mandated by the Dubai Supreme Council of Energy (DSCE).
DUBAL achieves ISO 50001 certification DUBAL power and desalination plant is the first in the Middle East to achieve the new energy management system standard.
D
ubai Aluminium (DUBAL) has achieved a regional first with the certification of its power and desalination plant to ISO 50001 Energy Management System (EnMS) – a first in the Middle East. Developed in 2011, ISO 50001 provides guidelines for energy management with an emphasis on establishing, implementing, maintaining and improving existing energy management systems – thus helping to continuously improve and manage an organisation’s energy utilisation, performance and consumption levels. To achieve ISO 50001 EnMS certification requires transparency in energy consumption and usage; accurate measurement of energy consumption and detailed reporting of the same; as well as strategic design and practices for the buying of equipment, processes, and acquiring personnel that would impact an organisation’s energy performance. The successes of DUBAL Power Plant’s existing EnMS include GT evaporative cooling, Frame 9BE rehabilitation, GT air filtration modification, Frame 9E uprates, Uprate GT14 from D2 to DM, Outage optimisation, HV reconfiguration, GTX project and compressed air enhancement. Moreover, hot gases from the power plant are used to drive the desalination plant, which can produce up to 30 MIGD. The enhanced efficiency of DUBAL’s Smelter and Power Operations over the period 2005 to 2012 has reduced the total fuel consumption by 14 million mscfd, leading to a reduction in the company’s carbon dioxide emissions by 270,000 tonnes per year. Through on-going efforts, the thermal efficiency of the DUBAL Power Plant has improved and in 2012 reached 44.37% – which means increased power generation to produce hot metal while the fuel requirement increment is proportionately less. DUBAL has also implemented the initiatives mandated by the Dubai Supreme Council of Energy (DSCE), of which DUBAL is a member entity, since April 2011. This has resulted in energy-savings of approximately 19,533,876 kWh over the initial 24 months since implementing the directives (i.e. to endMarch 2013); with the savings in the first quarter of 2013 alone amounting to 2,158,560 kWh. DUBAL’s overall target is energy-savings of approximately 22,000,000 kWh per year by the end of 2013. POWER & WATER MIDDLE EAST / JUNE 2013
15
IN THE REGION
Dr Sultan Ahmed Al Jaber, CEO of Masdar with Shaun Kingsbury, CEO of Green Investment Bank
Dr Sultan Ahmed Al Jaber with Ex-Im Bank Chairman and President Fred P Hochberg
Masdar sews up investment alliances MoUs with IFC, Ex-Im Bank and Green Investment Bank will see the deployment of over USD3.5 billion in renewable energy financing Dr Sultan Ahmed Al Jaber with Jin Yong Cai, CEO of IFC
M
asdar has entered into series of Memorandum of Understandings (MoUs) with international organisations to oversee the deployment of over USD 3.5 billion in clean energy projects. Under a MoU with the International Finance Corporation (IFC), the two parties will explore opportunities for the development of large-scale projects including: carbon capture, use and storage; cleantech venture capital and private equity fund co-investment; solar desalination and utility-scale solar and wind power projects. The joint effort will investigate options for the IFC to finance up to USD1.5 billion using financial products tailored to projects that may be developed by Masdar. “By encouraging private enterprise, IFC creates opportunities for people to escape poverty and achieve a better standard of living,” said IFC CEO Jin-Yong Cai. “This agreement will help support that work. Scaling up low-carbon, renewable power and solar desalination projects in developing countries provides
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POWER & WATER MIDDLE EAST / JUNE 2013
sustainable access to energy and boosts economic growth.” The MoU with the Export Import Bank of the United States (Ex-Im Bank) entails joint exploration of opportunities to structure and deploy up to USD2-billion worth of Ex-Im Bank’s finance supporting the procurement and deployment of US technologies, products and services in Masdar’s renewable-energy projects. Ex-Im Bank Chairman and President Fred P Hochberg said: “Masdar is a leading global developer of renewableenergy projects. Promoting clean-energy technology from American exporters in the global marketplace is an important priority at Ex-Im Bank. This MoU with Masdar will enable the competitive use of US clean technology on an international scale.” Ex-Im Bank provides a variety of financing mechanisms, including working capital guarantees, exportcredit insurance and financing to help foreign buyers purchase American goods and services. Under the MoU with UK’s Green
Investment Bank, the two parties will consider opportunities to jointly invest in green infrastructure projects in the UK over the next seven years. Together, they will introduce potential investment opportunities to one another and other potential investors. There is no change to the governance of both parties as joint investments will be made and managed independently. The MoU was the initiative of UK Energy and Climate Change Minister, Greg Barker, who said: “The creation of the Green Investment Bank is one of the Coalition Government’s key green achievements. Initially capitalised with a huge injection of GBP3 billion, we always intended this brand-new financial institution to act as a catalyst to attract other finance into the UK Low Carbon economy.” “This new MoU is a bold and exciting statement of intent. GIB and Masdar are new organisations – the first of their type in the world,” said Shaun Kingsbury, CEO of GIB. “We’ll be working together closely to bring investment to UK clean energy projects and to share our expertise and experience.
AT LARGE
ABB to produce PV inverters in South Africa Facility will produce central inverters with a capacity of up to 1,000 kW from 2014
A
BB plans to start production of central inverters in South Africa to support the rapidly growing local photovoltaic (PV) market and local content requirements. ABB plans to open the new inverter production line at its existing facilities in Johannesburg in 2014. The line for its PVS800 range of central inverters will have a production capacity of approximately 500 MW a year. It will produce 630 kilowatt (kW), 875 kW and 1,000 kW central inverters. The company already produces solar inverters in Estonia, India and China. ABB has a long-established presence in South Africa as a producer of power converters, and has a dedicated service organisation complete with training centre to support its expansion. South Africa is one of the world’s fastest growing PV solar markets thanks to the government’s commitment to increase power generation from renewable sources under the country’s renewable energy independent power programme. “With the new production line, ABB further reinforces its position as a global company with attention to local needs,” said Ulrich Spiesshofer, head of ABB’s Discrete Automation and Motion division. “The region’s energy needs are set to grow with economic expansion and with South Africa looking to benefit from its abundance of sunshine we will be in an even better position to serve our customers.” ABB installed its first two 500 kW PV solar projects near Johannesburg in 2011, and has since gained a delivery pipeline of approximately 90 MW of central inverters. The ABB central inverter series, rated from 100 to1000 kW, is designed for multi-megawatt PV power plants. The inverter series is based on ABB’s highly successful frequency converter platform, which has achieved global sales of more than 100 GW over the last 10 years.
GE helps power plant reduce water treatment needs Since 2010, the facility has saved more than USD1 million per year in opex using GE technology
The Tenaska facility includes three GE Frame 7FA gas turbines, three heat recovery steam generators and one GE steam turbine
T
enaska Gateway Generating Station, a combined-cycle power plant in Texas, has reaped the benefits of GE’s advanced water treatment technology, saving the plant more than USD3.2 million in operational expenses and significantly reducing its use of water treatment agents in the past three years. The Tenaska Gateway Generating Station, located near Mt. Enterprise in Rusk County, Texas, recently incorporated facility enhancements that earned the facility a GE Return on Environment Award. This award recognises the achievements of industrial users that significantly surpass environmental and industrial operational goals while balancing industrial demands. Tenaska was recognised for its noteworthy reductions in rinse water and water treatment agents. “Tenaska Gateway Generating Station has a long-time working relationship with GE since before the plant was commissioned, first by employing GE’s gas turbine and steam generator technology and more recently, by upgrading our water purification technology. GE’s new water treatment equipment enables us to use water more efficiently,” said Steve Pearson, plant manager. In 2010, the existing ion exchange technologies that had been the primary water purifier at the Tenaska Gateway Generating Station were enhanced with the addition of GE equipment utilising reverse osmosis membrane technology. In addition, GE treats the power plant’s water used in the heat recovery steam generators and cooling tower. With GE’s water treatment technologies, the plant uses fewer water treatment agents, which helps prevent water quality degradation and the need for additional treatment. It does not need to regenerate the demineralisers as often, which in turn saves money and minimise the amount of treated wastewater returned to the environment. “GE’s advanced water treatment technology allows the Tenaska Gateway Generating Station to use water resources in an even more responsible way and to save money on operation,” said Yuvbir Singh, general manager, engineered systems—water and process technologies for GE Power & Water. “Tenaska and GE both continue to be committed to safe, reliable and environmentally responsible operations. This site’s commitment to those principles causes it to be nominated and earn the GE Return on Environment Award.” The Tenaska Gateway Generating Station is an 845-megawatt, natural gas-fuelled combined-cycle electric generating station. The facility includes three GE Frame 7FA gas turbines, three heat recovery steam generators and one GE steam turbine. POWER & WATER MIDDLE EAST / JUNE 2013
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AT LARGE
Anxiety levels rising for electric industry leaders Disruptive impact of distributed generation and unconventional gas figure high among the trends highlighted in the survey.
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ey findings from Black & Veatch’s seventh annual US electric utility industry report show rising levels of concern across the industry for a broad range of issues. Once again reliability was the top-rated industry issue. “This year’s report reflects the views and outlooks of an industry in transition,” said Dean Oskvig, President of Black & Veatch’s global energy business. “From the lack of clarity in energy policy to disruptive effects of unconventional gas supply, major shifts are occurring just as the industry embarks on a new round of unprecedented capital spending addressing concerns over aging infrastructure, reliability and resilience.” Highlights include: • Predictable recovery of operating and capital costs through appropriate economic regulation jumped from ninth to third on the Top 10 Industry Issues list • Carbon regulation is top of mind with more than 70% of respondents expecting action- either state or federal - within the next eight years • Most utilities are planning to start or expand smart grid programmes in 2013. However, the industry continues to struggle with justifying programme costs to regulators. More than half (52%) of survey respondents identified business process redesign as the primary management challenge for integrating the Smart Grid into the utility enterprise. • Low natural gas prices are expected to stimulate significant new demand for the commodity. However, many industry leaders, particularly in the northeast, remain concerned about local volatility in gas prices and long term price certainty. Gas transportation, its availability and reliability, is also seen as a potential weak link in the fuels value chain.
Sound asset management programmes on the utility-side can help bring down anxiety levels
• Only 3.4 per cent of respondents believe that meeting renewable portfolio standards (RPS) is not achievable due to technical considerations. However, opinions still vary widely on the ultimate rate impact consumers will have as a result of meeting RPS. • Distributed generation, that is, power generating assets with a capacity of less than 20 MW often located close to end users, is growing in popularity. Low gas prices and rising conventionally generated electricity costs are improving the business case for industrial and manufacturing companies to produce electricity themselves on their premises.
US to remain gas turbine market #1 in 2020 US market forecast at USD852-mn by 2020; China closing in at USD842 million
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espite the uncertainty surrounding the country’s regulatory scenario and the overcapacity of some Combined Cycle Gas Turbine (CCGT) plants, the US is expected to remain the largest market for gas turbines in 2020, says the latest report from research and consulting firm GlobalData. The report anticipates US gas turbine revenue to plummet in the near future, from USD1.4 billion in 2012 to USD231 million in 2018. However, a large-scale decommissioning of coal burning power plants will drive the need for more environmentally friendly gas-fired alternatives and push the US market value back up to USD852 million in 2020, forecasts GlobalData. China’s gas turbine industry, however, can expect to demonstrate a much steadier rate of growth until the end of the decade, with revenue climbing from last year’s total of USD456 million to USD842 million in 2020. Market revenue gains within China will be spurred on by the nation’s rising electricity demand and the continued implementation of a fuel diversification strategy aimed at reducing a burdensome dependence on coal. Until 2004 there was virtually no gas-fired power generation in China, but with several long distance pipelines that came online between 2010 and 2011, and a number of new pipelines and Liquefied Natural Gas (LNG) import terminals currently either at planning or construction
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GE’s Advanced 6FA Gas Turbine. Large-scale decommissioning of coal power plants is driving the need for more environmentally friendly gasfired alternatives
stages, the country’s gas turbine sector looks set to exhibit significant expansion in the foreseeable future. Average annual global market revenue stood at USD12.4 billion during 2006–2012 and is forecast to hit USD11.8 billion for the period 2013-2020.
POWER & WATER MIDDLE EAST / JUNE 2013
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INDUSTRY NOTES
Passive savings
Siemens tech to help cut power, water use in MENA region’s first Passivhaus experiment in Qatar by Anoop K Menon
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iemens has supplied cuttingedge technologies to Qatar’s first Passivhaus experiment, which seeks to enhance energy-efficiency at residential units with the aim of creating more sustainable housing. The overall project, known as BAYTNA, targets a 50% reduction in energy and water consumption and CO2 emissions in the Passivhaus villa during the project’s implementation period. Passivhaus directly translates into ‘Passive’ house which essentially means the house doesn’t require energy from outside in contrast to ‘Active’. Of course, doing away with energy or water completely is impossible, but what is possible is reducing energy and water consumption to the minimum. The experiment, which started on April 22, 2013, is based on using two identical villas, one built conventionally and the other using green design and technologies, known as the Passivhaus villa. Both villas, located in Barwa City in Qatar’s capital city of Doha, will be occupied by the same number of residents who will move in after the completion of a sixmonth testing and commissioning period. “Siemens is proud to be a key supplier of innovative technology to Qatar’s first Passivhaus, which aims to reduce energy use and increase awareness of efficient technologies and solutions to create a cleaner and greener environment,” said Joerg Scheifler, CEO of Siemens Infrastructure and Cities, Middle East. Residents will live in the villas for a period of one year and the difference in their water and power consumption will be measured. During the first six months, the families’ energy and water usage habits will be observed. This will be followed by
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data analysis, training and education of the Passivhaus residents in using the available technology more efficiently to conserve energy and water. “I think that 30% savings would be through technology with the rest from behavioural change,” notes Scheifler. “If you have installed energy efficient lighting but keep the lights on 24 hours you haven’t changed anything.” At the end of the experiment, compiled data will be used to help introduce viable, cost effective energy and water efficient technologies and standards in new homes and offices throughout Qatar. Scheifler believes that the Passivehaus is a much stronger standard compared to existing building standards in the region. “The idea is to gain experience so that by the end of the test period, this experience can be incorporated into the housing standards of Qatar,” he continued. “A few years down the road, houses will have to be built to a certain extent to these standards.” The project is led by Barwa Real Estate Group, Qatar General Electricity & Water Corporation (Kahramaa), and Qatar Green Building Council, which is a member of Qatar Foundation.
Scheifler pointed out that in some European countries, Passivhaus has legal status, and enjoys subsidies in Austria and Germany. He continued, “The only difference is that here you want to conserve energy from a cooling perspective while in Germany, it is from a heating perspective. The standard defines a certain amount low amount of kW per m2, which you can achieve by applying certain technologies. What makes Siemens stand out is our bouquet of technologies that make it interesting for such a building.” Siemens has supplied the monitoring and metering equipment for this research project as well as fire detection systems and Building Management Systems (BMS). Osram, a wholly-owned subsidiary of Siemens, provided energy-efficient lighting solutions and Bosch equipped the villa with energy efficient white goods. “The most important part of such a building is the BMS which constitutes its brains,” said Scheifler. “All the data collected throughout the building is going to this BMS, where they are computed, monitored and at the same time, commands go out to adjust parameters that ensure the energy savings are maintained.” The Siemens honcho is very proud of the fact that Siemens was chosen to be the scientific partner for this experiment. He said: “It is meant to improve the existing legislation. The experiment supports Qatar’s National Vision 2030 and will help educate the public about energy efficiency, and subsequently assist them in reducing costs associated with power and water consumption.”
Artistic rendering of the Passivhaus experiment in Qatar
INDUSTRY NOTES
Supply shock
IEA report sees North American oil forcing companies to overhaul global investment strategies; surge in non-OECD refining capacity shaking up product market
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he supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15, the International Energy Agency (IEA) has said in its annual Medium-Term Oil Market Report (MTOMR) released last month. The shift will not only cause oil companies to overhaul their global investment strategies, but also reshape the way oil is transported, stored and refined.According to the MTOMR, the effects of continued growth in North American supply – led by US light, tight oil (LTO) and Canadian oil sands – will cascade through the global oil market. Although shale oil development outside North America may not be a largescale reality during the report’s five-year timeframe, the technologies responsible for the boom will increase production from mature, conventional fields – causing companies to reconsider investments in higher-risk areas. In virtually every other aspect of the market, developing economies are in the driver’s seat. This quarter, for the first time, non-OECD economies will overtake OECD nations in oil demand. At the same time, massive refinery capacity increases in non-OECD economies are accelerating a broad restructuring of the global refining industry and oil trading patterns. European refiners will see no let-up from the squeeze caused by increasing US product exports and the new Asian and Middle Eastern refining titans. “North America has set off a supply shock that is sending ripples throughout the world,” said IEA Executive Director Maria van der Hoeven, who launched
North American supply helped offset record supply disruptions in 2012 the report at the Platts Crude Oil Summit in London. “The good news is that this is helping to ease a market that was relatively tight for several years. The technology that unlocked the bonanza in places like North Dakota can and will be applied elsewhere, potentially leading to a broad reassessment of reserves. But as companies rethink their strategies, and as emerging economies become the leading players in the refining and demand sectors, not everyone will be a winner.” While geopolitical risks abound, market fundamentals suggest a more comfortable global oil supply/demand balance over the next five years. World liquid production capacity is expected to grow by 8.4 mb/d – significantly faster than demand – which is projected to expand by 6.9 mb/d. Global refining capacity will post even steeper growth, surging by 9.5 mb/d, led by China and the Middle East. The growth in North American oil production presents opportunities and challenges, notes the MTOMR. With large-scale North American crude imports tapering off and with excess US refining output looking for markets, the domino effects from this new supply will continue. Having helped offset record supply disruptions in 2012, North American supply is expected to continue to compensate for declines and delays elsewhere, but only if necessary infrastructure is put in place. Failing that, bottlenecks could pressure prices lower and slow development. While OPEC oil will remain a key part of the oil mix, OPEC production capacity growth will be adversely affected by growing insecurity in North and Sub-
Saharan Africa. OPEC capacity is expected to gain 1.75 mb/d to 36.75 mb/d, about 750 kb/d less than forecast in the 2012 MTOMR. Iraq, Saudi Arabia and the UAE will lead the growth, but OPEC’s lowerthan-expected aggregate additions to global capacity will boost the relative share of North America. Rising non-OECD participation in the oil market will be associated with continued growth in commercial and strategic storage capacity, along with strategically located storage hubs to support long-haul crude and product trade. African economies will play a larger role in the global market than previously expected. Although data leave room for improvement, there is strong evidence that African oil demand has been routinely underestimated, and may grow by a further 1 mb/d over the next five years. Finally, steep growth in non-OECD refining capacity will accelerate the transformation of the global product supply chain, exerting downward pressure on refining margins and utilisation rates and leaving OECD refineries at risk of closure, notably in Europe. Product supply chains will continue to lengthen as new merchant refining centres extend their reach, resulting in higher disruption risks and potentially more volatile markets in product-importing economies. The MTOMR is part of a series of medium-term forecasts that the IEA devotes to each of the main primary energy sources – oil, gas, coal and renewable energy – and, starting this year, energy efficiency. A companion to the IEA’s Oil Market Report, it offers a bridge between that snapshot of market conditions and the longer-term World Energy Outlook. POWER & WATER MIDDLE EAST / JUNE 2013
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COVER STORY
Pipes of the future F
ouad Makhzoumi, the Chairman of Future Pipe Industries (FPI), one of the leading global players in fibre glass pipe engineering and manufacturing, built a global empire on hard work, vision and determination. FPI pioneered the conversion of traditional pipes to fibreglass pipes in the region’s water, wastewater, industrial and oil and gas sectors. Makhzoumi started his career in Saudi Arabia in 1975 with Amiantit, now a publically traded pipe manufacturing company. In 1984 and after raising Amiantit sales by 10 fold, he put together enough cash to acquire the operations of Amiantit’s sister companies in the Gulf (excluding Saudi Arabia) and started Future Pipe Group (FPI). Twenty nine years later, FPI is a billion dollar company with the largest testing laboratories in the region and factories across the globe from Houston, to Europe to Africa and Asia, employing over 3,000 people and producing over 5,000 kilometres of pipes a year. The company is one of the top three manufacturers and suppliers of fibreglass pipes in the world. FPI is now pursuing an aggressive global expansion plan to grow organically and inorganically and is currently reviewing or in the process of making acquisitions with plans for an IPO in three to five years. In a freewheeling conversation with Anoop K Menon, Makhzoumi spoke on how FPI is ‘leading the market and changing perceptions,’ his management philosophy, innovation priorities and the Group’s commitment to governance and Corporate Social Responsibility (CSR). When you started innings as a pipe industry entrepreneur in 1984, did you envisage Future Pipe Industries (FPI) attaining the level of success and global leadership the company enjoys today? Historically, my family used to be part of the government from the days of the Ottoman Empire. My generation was the first that elected to go private. When I graduated in 1975 from the US, Lebanon was embroiled in a civil war, so I went to Saudi Arabia. Being a chemical engineer, I thought I would be working in desalination or power plant or a refinery. Then I met someone from Amiantit, the leading pipe manufacturer in the Kingdom, who invited me to join the company as a quality control engineer. Being a chemical engineer, I wasn’t sure what I would do in piping. But we agreed to one month training in September 1975 and that’s how I entered the piping industry.
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I could see that while the region is a desert, it is oil-rich, needs water and is experiencing high population growth. Ultimately, infrastructure is the key because if you don’t have infrastructure, you cannot attract investment. The desalination sector was picking up in 1975, and it was easy to figure out that if the plant is in Jubail and there is a need for water in Riyadh, you had to move the water to Riyadh. Once the water reaches Riyadh, it had to be distributed. Piping infrastructure is a USD 120 billion business today. Roughly, you need two pipes for every new born and with a population of seven billion people and growing, you definitely need a lot of pipes. Moreover, most of the urban areas are dispersed, so pipelines are an important integration link. The oil and gas industries have also become a rapidly growing market for us. To tap into the opportunities for
offshore and onshore pipe systems, we acquired two companies in the US - one, specialising in line pipes and downhole tubing with the second, more recent acquisition, being a leader in fibreglass pipes and systems for offshore platforms and marine vessels. Historically, the group derived 75% of its income from the Gulf; now we are expanding globally to tap into the new markets coming up in Asia, Africa and Latin America. By 2015, we hope to derive 50% of our income from the rest of the world excluding GCC which will account for the rest. We will capitalise on our low cost production in the GCC to export to these markets. We have a building capacity of USD1.3- 1.4 billion which means we can supply any project in the shortest possible time. We have enough machinery which means we can relocate and start production under eight months.
COVER STORY Could you elaborate on your manufacturing strategy? Currently, we are operating eight factories in the UAE, Oman, Qatar, Egypt, Saudi Arabia and the US. Initially, our manufacturing activity was largely concentrated in the Gulf, but we are diversifying. We now have a plant in Holland. We are in the process of acquiring a company in Spain, which also has a manufacturing facility in India. Additionally, this company has a contract in Morocco so we will establish a unit there as well. We bought a factory in Indonesia that will be converted into fibre glass. Our next move will be in West Africa, most probably Nigeria, which will give us a network to service the markets from North Africa to Sub-Sahara. From our manufacturing facilities in the Gulf, we can service nearly 50 countries including Australia. But ultimately, we might need to get closer to Australia because it is a huge market. But the million dollar question is should we produce in Australia or in Indonesia or Malaysia where the labour costs are cheaper. Again, we have licensees in China and Korea. Whether we would like to start manufacturing in both countries depends on the products per se because both countries are expensive. In fact, we are seeing a lot of Chinese manufacturing shifting to Myanmar and Vietnam. In the Gulf, labour costs are relatively low which means it is profitable to export from here to most parts of the world. But in Holland, for example, cost is always the deciding factor. Unless you have speciality products that you can afford to sell at a premium, it doesn’t make sense to produce in high-cost countries. However, we don’t intend to shut down any of our plants. We are looking to complement our existing production with low cost labour and same quality of work so that the combined project is very competitive. We are looking to expand in India because we believe that for the next 10 years, India will continue to be a competitive labour market until the middle class expands beyond 400 million. However, even today, China is very expensive as a manufacturing location and unless you manufacture for China,
whereby you get subsidies for exports, it is difficult to make money. You can try to reduce costs by making your machines more efficient but industry is always based on the human element. You can try to move your know how and expertise around but you need the majority of your technical support and labour to be in countries that can produce for you more competitively. Also, we manufacture huge structures that are competitive only if they are made close to the market. When it comes to oil and gas and marine piping systems, you can package them in containers and ship them. However, if it is a 4-metre diameter pipe, there is very little you can do.
What are the guiding factors behind your acquisitions? We are into the pipe business, so anything related to pipes whereby we can rebrand our products, improve efficiency and open more sectors excite us. I have products for oil and gas onshore, and the same product can be used offshore as well but the big engineering and EPC companies are reluctant to try something new. But if they understand a product and you can prove it is the same technology by rebranding your products, they are willing to take risks with you. Normally, when it comes to oil and gas and offshore marine, the accreditation process takes two to three years. But if you go for a brand which is approved and move the technology to your existing plant, within six months they can come and test the product. This means you can shorten the prequalification from two years to six months, which will give you an edge over competitors in terms of years.
Are you worried about competition? Competition is always a part of life. The reason why people come to me instead of going to competitors is that we have had no failures. Also, irrespective of how big we are, we still look at every client in terms of one-to-one-relationships. I personally know most of our clients and so do my managers. They feel comfortable in picking up the phone and calling us if there is a problem and we are quick to respond. In most cases, because of our
worldwide presence, we can supply them locally so they don’t have to be worried about big commitments. Our engineering partnership with Enoia means if they have a problem, we can even despatch people to solve it for them. Currently, our sales are around USD 1.4 billion. In 2008, we were valued at USD1.6 billion. However, we don’t discriminate between a USD 10,000 client and a USD 100 million client.
What is your advice to companies from the region nursing multinational ambitions themselves? How do they overcome negative perceptions and stereotyping about the Middle East? In the Middle East, in general, we tend to mix business and personal interests. You need to separate the two to ensure that the business is on solid grounds and inspire confidence among the banks. Moreover, even if your company is privately owned, you should never look at it as your own business. When we were planning to go public, the banks valued us generously and were willing to support us because they understood that we practiced corporate governance. In the long run, transparency and governance are very important. Ninety five per cent of the Middle East economy is based on privately owned companies but even in the Middle East, we are running short of funds for growth and expansion. Capital is not going to come to you unless investors feel you are trustworthy enough to give their money to you. At the end of the day, they are buying into your management skills and experience and will not invest with you if they don’t feel comfortable. The same thing applies to banks as well because they have burned their hands on several occasions in this part of the world. Unless they feel you can deliver and be consistent with your budgets and they have access to your information, they are not going to be extending you money. From our point of view, we believe that you need to shield your business from your personal lives. In most of our businesses, we have boards and the majority are non-executive board members. And if you have proven POWER & WATER MIDDLE EAST / JUNE 2013
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COVER STORY it and been practising a public style management for 10 years, anytime you want to go public, the market will feel very comfortable.
As a multinational company, what is FPI’s approach towards managing the different cultures? We have close to 40 nationalities in our group. Being Lebanese, I come from a country which has 18 religious groups. Co-existence is part of our life otherwise the country would have collapsed. If you can practice that within your own family, it is very easy to project it outside the house as well. In Lebanon, everybody is a minority – irrespective of whether you are 30% of the population or five per cent, you are a minority. When you start regarding this multi-ethnic, multi-national and multireligious groups as strengths rather than weaknesses, you are better prepared to deal with such environments, wherever and whenever you encounter them. As a company, we sit in multi-national think tanks like Council of Foreign Relations, The Atlantic Council. When you sit on these groups, you get a different perspective on how the world is functioning and a visibility of where it is headed making it much easier for you to redirect your business. When we bought this business in 1984, the price of oil was USD8/barrel and there was no liquidity but we could see the future. We invested 30 years ago and today, we have new set of opportunities to reposition the group. This doesn’t happen in a lifetime.
Was the financial crisis a learning experience for FPI too? I have been through the cycle of financial crisis three times in my life since 1975. During the recent crisis, our turnover went down from USD1billion to USD500 million but we were able to reposition the company in two years and stay in the black. It is not an easy task for a multinational company with many nationalities and thousands of employees to restructure in a short period of time. In fact, the changes came too fast even for the most intelligent of investors. Because we have been in the market for so long,
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we have the resilience and the mass to survive. But businesses that confused lifestyle and business realised they could continue with life style only at the cost of profit of the company. We never mixed the two at FPI so we were confident the business will survive no matter what. The average age of our managers is 3840 years old, so we are still a young group. Until 2008, the turnover of staff was under one and under half per cent. In 2008, everybody who worked for FPI was offered twice the salary because there was a need for this managerial style. Those who left us are now without a job as the packages they got are unaffordable these days. We plan for three years to build a plant, another two years to operate it so it takes 5-6 years to start recovering your investment. Unless you have patience and forward planning, you should definitely not be in this business.
How does FPI approach innovation and R&D priorities? We could not have achieved so much without understanding the market requirement. Sometimes, you can improve the technology in-house because it is about efficiency not product improvement. Very few companies here are serious about R&D. Mostly, they try to improve the efficiency of production and call it a new product which is not correct. In fact, sooner or later, you reach a dead-end because production is always about machines and human beings. You need to have an open mind to try and look where the technology is available and then try to buy it. You don’t start everything as Greenfield project because then, you will surely run short of management skills. By acquiring companies with a history of knowledge and knowhow, you are buying product and market share, and most important, human expertise. Every product has a special niche and unless you try to bring in those experts to add experience to your existing people, you will simply wither away. You need to have new blood and ideas, so that you can keep the process going.
You don’t find too many chemical engineers at the helm of a billion dollar pipe company and a global
leader at that? My philosophy is simple - you have to recognise that your knowledge is limited. The only knowledge that you have is to be a business manager with the technical background to understand what your managers tell you so that you aren’t overwhelmed by their technical terms. You have to do your research and read to understand what they are telling you. In the end, you also need a captain to take decisions. Before that you have to do consultation with managers because everybody has to be aware of all the details. Their inputs on specific issues might be seen from a different perspective that will give you a solution. You need to work on your management team. You can buy products and technology but you need to have the skills to understand what you need, look for it and bring it into the package. I have taken business courses so that when somebody brings me a balance sheet, I know what to look for. I don’t need to create a balance sheet from scratch. I am sure that my CFO, who is my school mate from Lebanon and went to Wharton, understands the balance sheet 10 times better than me. With my background, I can understand when you talk to me about specific applications. So we tend to find the best in their fields and most of the time, they know better than me.
Are there areas where you believe the Group needs to focus more? My son who passed away two years ago believed in Corporate Social Responsibility (CSR). In fact, wherever we go, we tend to work with the local community. Making money is fine but the community should not feel that your company is only interested in taking their money. Rather, you must re-invest part of it into social activity which benefits them. I believe that industry is an inalienable part of society, not a project where you walk in and walk out. For example, in Baton Rouge, we are working with the Mayor’s office to support e-learning for underprivileged students. I believe that we can do a lot more with the Makhzoumi foundation, w t up 15 years ago. In Lebanon alone, we have 250,000 beneficiaries. Unless you re-invest into the society, you will not last for long.
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COVER STORY
Fully integrated I
n October 2012, the Dubai Electricity & Water Authority (DEWA) awarded First Solar the contract for Phase 1 of
Mohammad Bin Rashid Al Maktoum Solar Park. As part of the contract, First Solar is also supplying its advanced thin-film PV modules for the 13 MW solar power plant. This utility scale solar PV project has enabled First Solar to highlight the full extent of its capabilities - from R&D to manufacturing to project services - in the Middle East. The project also opens up the region for the company’s thin film PV technology, a potential game changer in the Middle East’s fast evolving solar PV market. Georges Antoun, Chief Operating Officer (COO), First Solar speaks to Anoop K Menon on the state of the solar PV market, First Solar’s growth strategy and its commitment to the Middle East.
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Is the bottom behind us? I prefer to be cautiously optimistic. There is a combination of things that are happening – first, the oversaturated inventories are being emptied; two, competitors are starting to think about long term viability, so we are going to see consolidation in the market; third, the energy market is starting to understand that solar is a legitimate, costcompetitive source of power. As the technology matures, demand continues to pick up. It might not be the same type of demand that drove the industry over the past few years, but in general, the market opportunity will continue to grow. In fact, today, when policy makers sit down to plan the energy strategy, solar is a serious contender in the energy mix. In my opinion, solar shouldn’t be considered just because it is environment-friendly energy source or as a hedge against energy costs. Rather, solar should be considered because it is a very competitive alternative source of energy and looking forward, we see costs going down further to USD1/W for the whole system. This makes solar very competitive vis-a-vis conventional energy resources, with the added bonus that sunlight is clean, abundant and free.
In Europe, we are seeing countries cutting down on subsidies for the solar industry. Do you think we have reached a point where solar power in general and PV technology in particular can be competitive on a standalone basis without subsidies? I truly believe that solar has what it takes to be a competitive, independent energy resource. One of the reasons I joined First Solar is to help the company be self-sufficient and not be dependent on subsidised solar markets. This play has to do with technology improvements in keeping with Moore’s law, with performance benchmarks being announced more frequently. Technology itself is improving in a tremendous way, cost is decreasing and scale is changing. The more we continue to invest in technology and
COVER STORY drive R&D, operations and manufacturing, the better the results are going to be from a competitiveness perspective.
A few months ago, First Solar announced a new cadmiumtelluride (CdTe) module efficiency record. Could you comment on the strategy behind this breakthrough? First Solar is a global technology and market leader in cadmium telluride (CdTe) thin-film photovoltaic (PV) systems and modules. Unlike the conventional PV ecosystem, we continue to manage our own manufacturing. Our activities span from R&D all the way to delivering our modules. These loops feed into each other and the information gathered allows us to improve our technology. If you look at our past and future road map, you will see us consistently improving our performance, year after year. That’s why I can commit to the fact that our costs and module efficiencies will improve. Our competitors don’t have a full view of the value chain the way we do. We are one of the few players in the industry to be truly committed to R&D because we enjoy a good balance sheet. That’s why it is important to understand who is making profits in the industry and how those profits are being utilised. We are committed to researching and improving the technology and that’s something the customers are starting to understand as also the fact that we are with them for the long term.
Have the limits been reached in terms of squeezing costs out of module prices? We are looking at further improving efficiencies and reducing costs. In fact, First Solar is targeting a cost per watt of USD0.40 by 2017. However, as the module efficiencies continue to improve on a cost per watt perspective, what is also improving is the balance of system. You can optimise with infrastructure – remove frames, reduce cabling, combiners; optimise with the inverters, the high voltage equipment and the design; in other words, optimise across whole system to achieve a cost of USD1/W. It is important for people to understand that we don’t simply raise efficiency or
spend money on the module itself. We look at the whole system to ensure that module developments work with existing infrastructure to keep costs down. For example, our modules are 2ft x 4ft to help the average construction worker handle them. If it is any larger, you need machines and with big plants, this affects costs and timelines. So we think about the whole chain – all the way from the module to the systems, to how it gets installed and to what the installation costs are – which gives us multiple areas to excel in rather than limiting ourselves to modules and efficiencies.
While the 13 MW solar power plant in Dubai represents a significant win for First Solar, what would be your regional strategy going forward? We are very committed to the Middle East, which is very strategic and exciting market for us. We have an office here in Dubai, which will serve the entire Middle East and North Africa (MENA) region except Saudi Arabia, which will have its own office, given the size of the country and scale of the projects. The region is taking a cautious approach to solar, with numerous lessons being learned before the market really takes off. But we all know that when the market does take off here, it will be significant. Our strategy is to be ready, understand how the market is developing and to understand our partners, the ecosystem and the supply chain. As the market evolves, we will be better positioned to deliver highest quality product at the most competitive cost for the customers.
How does your Engineering, Procurement, Construction (EPC) play help the company? Because we have a solid balance sheet, we took up the opportunity to finance projects. In fact, we have financed approximately USD9 billion worth of projects so far. Financing is an important element for deploying large plants. By bringing together technology, manufacturing and financing, we can, as a truly vertically integrated company, drive margins and profits. This also gives us an
opportunity to be pioneers in deployment. While certifications exist in other sectors, the solar industry is still trying to understand the type of standards or certifications that should be followed. We have taken it upon ourselves not only to build solar power plants, but also understand how we can drive the industry from a certification and standardisation perspective. At the same time, this play gives us a full feedback loop, whether it is tweaking panel sizes for ease of installation and transport or integrating cables into the structure. All these are very important because we operate in a highly competitive market. That said, we do not have a one-sizefits-all approach and each market has its own requirements. That is why it is important for us to understand the market, figure out our go-to-market strategy and execute accordingly.
Given your highly successful career innings in telecom, what attracted you to join the solar industry? There are lot of parallels between the two industries, but what interested me were the challenges. Of course, telecommunications is a far more mature sector with its own industry codes and standards bodies that basically establish criteria across vendors, customers and service providers. In fact, from an industry perspective, the telecommunications industry is at least a decade, if not more, ahead of solar. But I felt that this presented me with a great opportunity to plough back what I have learned in telecom, into an upcoming and pioneering industry sector. While solar technology has been around for a long time, from an industry standpoint, we are still in the early stages. That said there are a number of parallels; in telecoms, western companies drove the market for a while until competition from China entered the market, driving down prices. That is precisely what is happening with solar. I do believe that this competition will consolidate the solar industry in the same way that it consolidated telecom, because no company can continue to lose money year over year and continue to survive. I do believe that solar will emerge as a major industrial sector in its own right, like telecom. POWER & WATER MIDDLE EAST / JUNE 2013
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Prudent player L
ast month, Sembcorp celebrated the official opening of its first operation in Oman, the Salalah Independent Water and Power Plant. Sembcorp also owns, operates and maintains the Fujairah 1 Independent Water and Power Plant – one of the world’s largest operating hybrid desalination plants – in the UAE since 2006. The company followed up its Salalah success with a joint
venture pact that will pave the way for introducing its pioneering and highly successful centralised utilities model in the region for the first time. Tan Cheng Guan, Executive Vice President, Head, Group Business Development and Commercial, Water, Energy, Middle East &Africa, Sembcorp Industries spoke to Anoop K Menon on what is next on Sembcorp’s radar in the region, and the benefits of centralised utilities model in the context of the region’s energy intensive industrialisation agenda.
Could you give us an overview of your strategy for the Middle East’s power and water markets? When we were planning to enter the Middle East, we realised that a strong track record is key to cracking the region. You have to show that you can succeed, not just by winning a project but by delivering the plant, operating it and maintaining it at a high level of reliability. A number of projects were happening at that time but we decided to acquire the Fujairah 1 Independent Water and Power Plant (IWPP). The initial focus was on getting the plant up and running because it also included expansion of power
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generation capacity. It was also important to demonstrate that we are able buy a brown field project and turn it around. We did that and completed the power plant expansion in April 2009. Just before that, we decided to take the next step, which was Oman, where we bagged the Salalah Independent Water and Power Plant. Now that we have completed Salalah, we will be on the lookout for our next project in the region. We are a prudent company in that we don’t try to take on work that we cannot digest. As we grow in the region, our resources too will increase, which will allow us to take bigger steps. However, we
will always take a cautious and prudent approach in terms of growth. Our philosophy is that when we go into a project in a particular market, we want to make sure we succeed. The commitment is there and whatever challenges arise, we make sure that we overcome them.
After the UAE and Oman, which market is on your radar for 2013? The Middle East region and especially the Gulf Cooperation Council (GCC), has huge market potential. The biggest market, of course, is Saudi Arabia. Obviously, we would be looking to find the right beach
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head to maximise our chances of success in the Saudi market. Once we get into a market, our objective is always to try to grow in scale within that market. In Fujairah, we had a power plant expansion and recently, we signed a 20-year water purchase agreement with the Abu Dhabi Water & Electricity Company (ADWEC) for expanding Fujairah 1 IWPP’s seawater desalination capacity by 30 MIGD. In Oman, we are signing a joint venture agreement with Takamul to develop centralised utilities facilities for the Duqm Special Economic Zone (SEZ). All these prove that we are growing in the markets we operate in. Of course, Saudi Arabia is a new market and we have to do our due diligence.
Will Sembcorp be looking at only the power and water sectors in the region or other areas too? We will be looking mainly into power and water. However, one of our core competencies, something we have pioneered worldwide and where we started our utilities journey is the Centralised Utilities Model. As mentioned earlier, we signed a joint venture agreement with Takamul, a subsidiary of Oman Oil Company, to develop centralised utilities facilities for the Duqm Special Economic Zone (SEZ), slated to be one of the world’s largest industrial SEZs. The whole SEZ is 1,700 Sq km or three times the size of Singapore and will take 20-30 years to develop. Under the agreement, Takamul and Sembcorp’s 65-35 joint venture entity, Centralised Utilities Company (CUC), will serve as a one-stop provider of a range of centralised utilities such as power, steam, water, sewerage treatment and on-site logistics on a captive basis to multiple industrial customers in the Duqm SEZ. CUC’s customers will include anchor customer Oman Oil Company, which is developing a 230,000 barrels per day refinery targeted to begin operations in 2018 as well as a petrochemical complex on the site. CUC will have an initial share capital of approximately SD3.2
million, of which Sembcorp’s 35% stake will be funded through internal resources.
What are the benefits of the centralised utilities model? Under this unique model, multiple customers are offered an integrated supply of energy, water and on-site logistics produced by centralised facilities to drive economies of scale, improve reliability and make that available for the whole complex. By outsourcing critical utilities to Sembcorp, companies can focus on their core business and save on investment and operating costs. They can also be assured of reliable solutions which meet stringent environmental standards. From its beginnings in Singapore, this model has been successfully replicated in key industrial sites internationally. Including Duqm, Sembcorp’s centralised utilities model has now been implemented in 10 sites across Singapore, the UK, China and the Middle East. In Jurong Island, Sembcorp provides energy, water and on-site logistics and services to over 40 multinationals. The site has been operational since 1997. Investors find it very easy and convenient because a utility plant can take up 30-50% of the cost depending on the size of the plant. Apart from capital expenditure savings, companies don’t have to worry about complying with environmental standards In fact, investors are often unable to complete their projects on time because of unfamiliarity with environmental rules. The availability of centralised wastewater treatment means they don’t have to worry about the discharge norms. Sembcorp will manage the wastewater for them and we will be responsible for meeting the effluent discharge norms. Moreover, the value of the real estate improves once the centralised utility becomes more elaborate over time. Today, Jurong is producing 25% of Singapore’s manufacturing output.
The Gulf countries, especially Saudi Arabia, have announced plans to develop their renewable energy sectors. Will you be looking to tap into these opportunities as well?
Our approach is to start with a significant anchor investment in a new market that we enter so that it is more sustainable. If we go into a new market and execute a 10 MW or 20 MW wind farm, it is too small in size. Once we get a big ticket investment like Salalah or Jurong, we would look at opportunities to grow renewable energy around the anchor business. I think it is the right thing to do because for power as a play, you need to have basket of renewables going forward. Saudi Arabia’s very ambitious renewable programme focussed on solar is the right strategy for them. Otherwise, they will burn more and more oil for domestic consumption of power and water. We started our first renewable project in the UK in Teeside with a wood-fired 33 MW biomasss power station. The wood comes from recycled wood, managed forests and saw mills waste. We invested almost GBP70 million in the project in 2007. This April, we entered into a joint venture with SITA UK (part of SUEZ ENVIRONNEMENT) and ITOCHU Corporation to develop a new energy-from-waste facility in Teesside, which will be our first energy-from-waste facility outside Singapore. The new facility will be capable of producing up to 49 MW of gross power or 190 tonnes per hour of steam, using municipal and commercial waste. Last year, we opened our first energy-from-waste plant on Jurong Island with a SD34 million woodchip-fuelled biomass steam production plant capable of producing 20 tonnes per hour of process steam. We also have 215 MW of wind assets in various parts of China.
What is your localisation strategy? Our philosophy is that over time we will localise. We have developed processes and procedures and provide the right training so that in every location we operate, we have capable people, mainly local staff. This is also something that countries here are looking for after the Arab Spring. Our localisation approach is aligned with the countries’ interest. Singapore’s development of human resources has been a very successful part of economic development. POWER & WATER MIDDLE EAST / JUNE 2013
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Serving power globally A
ltaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilises, installs, and operates temporary independent power plants (IPPs) focusing mainly on the emerging markets to provide fast-track and large-scale solutions from 20MW
onwards. Steven Meyrick, Managing Director of Altaaqa Global spoke to Anoop K Menon on the powerful synergy between Caterpillar’s global presence and Altaaqa Global’s temporary power expertise, how his company will differentiate itself from competition by leveraging the worldwide Cat dealer network and more. Why did you choose to take the start up route for Al Taaqa Global? How do you differentiate the company from its Saudi counterpart Altaaqa Alternative Solutions? We are not a start up in the true sense of the term. We are a subsidiary of the multi-billion dollar Zahid Group, which is the Caterpillar dealer for the Saudi market since 1950. The 100-year old group is well known in the Kingdom for its code of ethics, integrity, professionalism, management principles and industry standards. Zahid has been selling Caterpillar generator sets for decades. In 2004, they realised that a lucrative segment of the market - selling the end product electricity – was being missed out, so they set up Al Altaaqa Alternative Solutions to enter
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that segment. Within five years, Altaaqa Alternative Solutions grew from being a non-player to the biggest rental power solutions provider in Saudi Arabia and the world’s largest fleet owner of Caterpillar Rental Power with over 750MW in its inventory. At Altaaqa Global, our goal is to mirror that success and experience on the international stage. Al Taaqa Global has started its journey with 100 MW comprising a mixed fleet of diesel and natural gas. In fact, Al Taaqa Global is Zahid Group’s first major venture outside the home territory. The reason for establishing this as separate entity to the one in Saudi Arabia is to not lose focus on the Saudi growth story, which still has a long way to go. And we are a CAT dealer in our own
right as Zahid Tractors in Saudi Arabia or Al Bahaar in the UAE. In fact, Al Taaqa Global is a fully licensed, global CAT dealer.
Is it the first time that Caterpillar decided to partner a Middle Eastern company for the global market? Globally, Caterpillar has 140 dealers and 1,700 outlets with each dealer focussing on the assigned territory. However, for a long time, Caterpillar had focussed on products other than generators with the result that competition walked away with a substantial slice of the rapidly growing International Power Project (IPP) market. In taking their eye off the ball, they lost a tremendous market share in generators despite the fact that Caterpillar is the largest manufacturer of diesel generator
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sets in the world. However, the IPP business consumes a lot of engines. After regaining focus on the IPP market, Caterpillar decided on a strategy to establish five international IPP players – two in the US, one in Europe, one in the Middle East and one in Asia. These five companies are bona fide, global Caterpillar dealers. This is very unusual and unique because by creating global dealers they were doing something never done before. There were various ways of combating the threat they faced. Caterpillar is big enough to take various courses of action, including buying out competition and they have a successful legacy of growing through acquisitions. But in this case, they would have ended up with thousands of engines of a different brand and disposing those off would inevitably create several competitors in one go. The five global IPP companies are focussed solely on turnkey, temporary emergency power projects wherever it might be needed in the world. Each of the five is a separate, independent player. We are competitors but also collaborators because we all belong to the Caterpillar family. Right now, we collectively represent 2,500 MW of capacity. Our business plan calls for aggressive growth over the next five years. Al Taaqa Global plans to add 500 MW in five years after which we will re-visit our growth plan. We will purchase the generator sets, operate them and sell the electricity. If all the players grow in this way, in five years, the IPP team will be a force to reckon with. Our objective is to regain Caterpillar’s lost market share in five years.
What are the benefits of the Caterpillar association? We have direct access to Caterpillar in terms of product purchase, technical access, warranty support, parts procurement and product development. If someone employs us as an IPP in a particular country, we will be supported by worldwide Cat dealer network and CAT certified engineers, which allows us to focus solely on rental power. Clients are reassured by this collaboration. Moreover,
Caterpillar is also spending billions of dollars in R&D to improve engines, processes. Caterpillar’s R&D spend is four per cent of their turnover, more than any other competitor.
Why did you choose to base the company in Dubai? There are free zones all over the region including Saudi Arabia. In the end, we decided to base ourselves in Jebel Ali because it is one of the world’s top container ports with an efficient set up and shipping routes covering our target markets. Most of the potential emergency power is required in the southern hemisphere, and the Jebel Ali Port provides good access to most of these places. That’s kind of borne out by the fact that most of the IPP provider have got offices here. The other deciding factor was ease of doing business and logistics. We have leased 40,000 m2 of space in Dubai Logistics City (DLC) for the head office building. We chose DLC because we deal with both air and sea freight. DLC is close to Maktoum Airport with direct access to the port through the logistics corridor. The DLC office is also our first service hub and depending on how the business grows and evolves, we will have other hubs. We are building the office in two phases - Phase 1 will be finished by Q1 of 2014. The space will also be used to carry out servicing of the units, their refurbishment and training. This is also the only dedicated IPP Centre of Excellence (CoE) for Caterpillar globally. Most of the other IPPS are formed out of several CAT dealerships and often, are a section of the dealership. Therefore, they don’t have a CoE dedicated to the business like we intend to do.
What are the main drivers of the IPP market? The main drivers of IPP market are high GDP and population growth rates in the non-OECD markets, growth in the frequency of natural disasters and power generation shortfalls due to lack of investment and planning. These are the strong underlying drivers that have actually created the market. In addition to that, if we look at the
market and size of the IPP players, in 2008-2009, the market had a 600 GW of short fall. Back in 2011, excluding China and India, the shortfall was 300 GW. If we include Middle East, Africa and a little bit of the Indian subcontinent, the shortfall is 120 GW. However, even if we combine all the IPP players, we will end up with only 30,000 MW. In other words, even if you combine all the IPP capacity, you still cannot cope with the demand. However, this business cannot fill the shortfall entirely as this can be bridged only through large permanent power plants. This business is temporary emergency power because there is always a lag in investment. We are there to provide a brief respite from the shortfall.
Why retain the name Al Taaqa when you are going global? The legal name of Al Taaqa Global is Al Taaqa Alternative Solutions Global. Al Taaqa literally means energy in Arabic. We decided to keep it because we were successful with that name. The difference with the global company starts with branding. In order to keep this name and make it successful, we decided to tag on the Caterpillar brand. Al Taaqa Global CAT Rental Power is a globally recognised brand because CAT is a powerful brand worldwide. In Saudi Arabia, we are legally known as Altaaqa Alternative Solutions Company. We decided on having the word ‘Alternative’ to convey that we will always move with the times. In fact, diesel or natural generators is not the end all because as technology evolves, there will be alternative solutions based on solar. For example, Al Taaqa in Saudi Arabia is not just a power provider but is also into desalination. As new technologies develop, we will launch them into the market. Currently, we focus on diesel, gas and dual-fuel engines for areas where the gas pressure is not so reliable. The main difference between a local Caterpillar dealer and a global IPP player like Al Taaqa Global is the licensing threshold. Caterpillar created global players to concentrate on IPP market keeping the threshold as 20 MW and above because an average Caterpillar POWER & WATER MIDDLE EAST / JUNE 2013
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dealer will not have the capacity (fleet, transformers, cables, and fuel- tanks) for delivering 20 MW. Without this threshold, we could have a situation where we will be going into dealer territories with one generator or two and spoil their market. At 20 MW, it is deemed to be a support to those dealers rather than a threat to their business. They would not normally be able to handle projects of this size and therefore, lose them to the market leader which means they wouldn’t get any benefits either. With 20 MW as the threshold, we are supporting their territory and keeping it Caterpillar while they benefit from parts or service sales. In fact, once we get a contract and within our scope of operation, we talk to the local Caterpillar dealer and see where they can come in. As a result, they will be inclined to work with us because they are assured of getting business. It is in our interest to collaborate with them. In order for Caterpillar to gain ground again in the power rental game, their network worldwide is a major asset. We want to leverage the network of 1,700 outfits and use that as our strength so that we don’t have a problem if a small filter has to be replenished, for example, in the middle of a mountain in Nepal. In fact, the local dealer can pursue a power project on our behalf or we can pursue the power project, negotiate with the government, and later on, pass it to the local dealer and collaborate. For example, we are working with a Caterpillar dealer in North Africa. They don’t have the capacity to handle the project so we have joined them as a technical partner and if they take on the project, we will execute it as sub contractor.
Could you tell us about the geographies or countries you will be targeting from Dubai? Sixty per cent of the total IPP opportunity lies in the Middle East, Africa and Asia. In the global power shortage, Africa alone accounts for 80-200 GW. In Asia, India alone is worth 30-40 GW of shortage. We can reach our markets in Africa and Indian Subcontinent within four hours
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of flight time from Dubai. While Dubai is our first hub, we may consider setting up hubs in markets where we are assured of continuous business. We are providing reliable turnkey solutions to customers and it is critical that our deployment to a site is rapid because in a real emergency, that can make a difference. In the GCC alone, there are opportunities. Kuwait requires lots of temporary power till 2014 while Saudi Arabia is such a huge market that even Al Taaqa cannot meet all the demand. We are also looking forward to opportunities in Qatar from the build up to 2022 FIFA World Cup. Oman’s power infrastructure is still developing so there are opportunities there too. Utilities are one of our primary markets. By 2015, 50% of the power plants in the world will require maintenance. These are 20-30 year old plants that have to be refurbished; they need to be shut down for three months to nine months depending on the complexities of power generation. This is where we come in. Again, even if you combine all the global capacities of IPP players, we cannot cope up with the demand this maintenance cycle throw up. Mining is another important market because 80% of the power is supplied by generator sets – either the mining companies are buying or renting the sets. Once the generator sets are purchased, the problem is that companies lag behind on the maintenance front. So it makes sense for them to rent these sets and rid themselves of maintenance issues. In Latin America, Africa and Australia, mining is a big market. We charge the best value proposition to the clients. For example, if the client is a hospital which requires power for 80 patients under dialysis, what matters is time of delivery and reliability of power. I think the best proposition we can offer the client here is we will save them lives and money. In Bangladesh, where you have eight hour load shedding, tanneries and garment factories rely on rental power to run operations. Without generators, Bangladesh may see a significant drop of GDP.
What will be your differentiating factors? We will provide global remote monitoring capability from our head office for each of our generators. From Dubai, we can monitor the status and condition of any generator; for example, we can monitor parameters like temperature and fuel consumption, the advantage being there is no need to have a maintenance person onsite all the time. And often, they may not know if a generator is performing differently. We will be offering this service depending on the requirement of the client. Ultimately, the customer is interested in reliable power. Remote monitoring ensures reliability and dependability and protects our assets as well while the customer benefits from reliable power and no outages. We also want to provide reliable and fast service – In Oman, we successfully installed 24 MW of temporary power in a mere four days. The power project was one of the fastest installations in the history of the equipment rental industry. We achieved a similar benchmark during Hurricane Sandy in the US. While Al Taaqa Global is a new name in the IPP business, we will differentiate ourselves in the way we execute projects and deliver our units. We have 80 years of experience in the company blending into a project. All the people we have selected – from Zahid and other companies - were chosen for individual expertise and ability to form a team, and the Oman project was great demonstration of that synergy. We are looking to cut the Oman record time even further down through continuous improvement. Each project will have a post-mortem so that we can hone our skills. We have to demonstrate that competitiveness and strive to improve on what we do because that is the key to success. And in any project that we do, we will always strive to give back to the community. We are inspired by the Zahid family where they have taken up many initiatives to give back to the community. We will work with schools and create local employment opportunities. We need people to operate the plant, so we will be investing in training.
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ON THE RECORD
Lighting’s trendsetter With its regional distribution centre located in Dubai and a strong regional footprint in indoor and outdoor lighting in the Middle East, GE Lighting is underlining importance of energy-efficient lighting solutions to support sustainable development in the region. In an e-mail interview, George Bou Mitri, GE Lighting’s General Manager of Middle East, Africa and Turkey elaborated on how energy efficient lighting in general and LED technology in particular drive the creation of environmentally sustainable cities.
Could you elaborate on the importance of lighting in the context of energy efficiency? Lighting accounts for 20% of all electricity consumed around the world and up to 75% of that can be reduced by switching to efficient lighting (LED). Savings from lighting has been identified as the most immediate and cost effective method to immediately reduce the carbon footprint around the globe by UNEP (enlighten programme). A study by McKinsey states that LED is an environmentally and economically superior technology; LED bulbs, the report says, can generate more than 100 lumens per watt of electricity, compared with 60 to 75 for CFLs, while lasting three to five times longer, and about 25 to 35 times longer than a standard incandescent bulb. With no mercury in it, their disposal is safer, and can contribute up to 80% in energy savings. The benefits of using LEDs also include a long useful life of up to 50,000 hours,
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minimised maintenance and related costs and excellent low temperature performance. The US Department of Energy estimates that the adoption of LED lighting over standard incandescent bulbs over the next two decades will help save enough power to avoid the construction of 40 new power plants, generate more than USD265 billion in energy savings, and reduce electricity demand by nearly one-third. McKinsey estimates that the LED package market in general lighting is expected to be around 25% per annum through 2016. We strongly believe that LED is the future of lighting solutions in the Middle East region, especially with demand for power growing in line with the population growth and infrastructure development. How would you classify or categorise the market (users) for LED lighting today? Where do you see the biggest opportunities in LED lighting applications?
Demand for LED lighting is now acrossthe-board covering all light application verticals such as roadways, office, commercial, retail and residential. Today, the region is taking the lead in promoting LED lighting. For example, the guidelines by the UAE Government supporting green lighting serves as a strong opportunity for a quicker transition towards LED based efficient lighting technology. Abu Dhabi has announced a Sustainable Public Lighting Strategy, which aims to reduce total cost by over 40% in the next two decades, while providing the best luminance, reducing power usage by at least 60%, cutting carbon dioxide emissions by about 75% and reducing facilities and maintenance works by 40 to 80%. Similar approaches are being taken by other regional governments, with Turkey announcing a total revamping of its lighting infrastructure with energy-efficient solutions. Such collective and integrated approaches, rather than a piecemeal strategy, will bring immediate results that have far-reaching benefits. Approaching sustainable lighting from a holistic perspective is important or the transition will be slower than desired. LED is perceived as costing 10 times more than incandescent and fluorescent lighting. Why this cost difference? Has this affected LED’s market potential? While the initial cost of LED is no doubt higher than incandescent and fluorescent lighting, in the long run the cost benefits of LED far outweighs them, especially through the savings in energy usage and longer life. Customers are increasingly aware of this, which explains the growing
ON THE RECORD
demand for LED solutions. With shorter payback periods and strong returns on investments, LEDs are a stronger and more economically viable option. Today, however, with more research into LED lighting, and the industry achieving economies of scale, the price of LEDs will come down, which further underlines the huge market potential for LED. Which technology trends do you see in LED lighting? Is there an intelligent or smart element in LED lighting systems as well? As the pioneer in lighting technologies, right from the invention of the first affordable incandescent lamp by Thomas Alva Edison to pioneering the industry revolutionising technology of LEDs in the 1960s, GE Lighting has been setting new trends in the lighting industry globally. We continue to invest in the LED lighting technology. For example, GE has combined its luminaire and LED expertise to bring unmatched product quality and reliability together in an integrated approach, which drives creation of environmentally sustainable cities. Such application is extremely relevant for the UAE and the wider Middle East where the focus is on energy efficiency to meet the growing power demand. The newest technology trends in LED also include the smarter controls – both for buildings and street lighting – with dimmers being activated to set times, and the light source being controlled through intelligent smart systems. Could you share with us your plans for this region? We see strong potential in the region especially led by the huge investments in infrastructure development, and the regional governments focusing on sustainable lighting solutions. We are looking at building our partnerships, and have opened our first full-fledged distribution centre in the Middle East in Jebel Ali Free Zone, Dubai. Spanning over 1,375 square meters, the GE Lighting distribution centre will serve as a strategic hub for the company to further expand its presence in the UAE as well as strengthen
exports to key markets in the Middle East and Africa. We are also expanding our team and presence here, having recently held a roundtable discussion, attended by all key stakeholders, to discuss the sustainability challenges in the lighting sector. The roundtable discussion, ‘Lighting the Path to 2030: Opportunities and obstacles for the adoption of sustainable lighting,’ was attended by representatives of governmental departments, civil society organisations working to promote energy sustainability and the private sector including designers and architects. It served as a platform for all stakeholders in the industry to promote sustainability to find solutions for the application of the energy-efficient and environmentally friendlier LED lighting in the construction sector, from new projects to retrofits. What do you consider the major challenges in the LED lighting industry in the years ahead? With lighting accounting for a significant part of energy use, both for domestic and commercial purpose, it is important to shift the approach on lighting from treating it as a disposable commodity to a strategic asset. This calls for a different level of due diligence and decision making that focuses on the purpose, economics, and behaviour of the lighting devices used. Taking an integrated approach to design is important so that the solution is optimised for three aspects: Purpose (what are the objectives of the illuminated space); economics (how do I assemble the various lighting technologies into a system that provides the right quantity and quality of light at the lowest possible level of operating cost); and finally behaviour (can we use the device intelligence made possible by LED technology to make lighting systems intelligent and adaptive). Understanding the technology to make the right decision is a must, and we see the true potential of LED being realised in the coming years. What is the role of the government in driving LED adoption? Governments have a key role in promoting LED adoption, particularly
through regulatory policies regarding product standards, building codes and encouraging the private sector to move towards sustainable lighting solutions. Alongside, as the principal stakeholder in developing large-scale infrastructure such as roadways, bridges and other outdoor projects, governments can take decisive action regarding their lighting choice. Today, there is strong support from the regional governments in promoting LED adoption. In fact, we have been associated with several key initiatives in the UAE including a significant share of roadway lighting in Abu Dhabi. The focus of the authorities to introduce sustainable outdoor lighting is particularly laudable because the region on the whole is facing strong growth in demand for energy. What are the benefits of embracing LED Lighting? Do you believe that LED technology will replace traditional lighting in general lighting applications? Apart from the energy savings and lower impact on environment, mentioned above, the benefits of using LEDs also include a long useful life of up to 50,000 hours, minimised maintenance and related costs and excellent low temperature performance. In roadway lighting, LEDs also deliver the added advantage of better visual conditions with the colour characteristics of LEDs creating better object recognition and visual results. This is also beneficial for other applications such as for parking lots, where the footage is clearer for security cameras, thus promoting safety. LED lighting is also known to enhance employee productivity by creating a more conducive work environment, and most importantly, they reduce light pollution, which is pervasive with traditional lighting. We strongly believe that LED technology will find far greater application in the near future, especially with the regional governments focusing sustainable development and promoting energy use efficiency in the construction sector through green building guidelines. POWER & WATER MIDDLE EAST / JUNE 2013
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ROUNDTABLE
Lighting the path to 2030 Last month, GE Lighting organised a round table to discuss the sustainability challenges in the Middle East lighting sector. The round table discussion ‘Lighting the Path to 2030: Opportunities and obstacles for the adoption of sustainable lighting,’ brought together stakeholders from the industry to discuss energy efficient and environmentally friendly lighting in the construction sector, from new projects to retrofits. The panel comprised of Solaiman Al-Rifai, Director of Project Finance, Dubai Carbon; Agostino Renna, President and CEO for Europe, Middle East and Africa, GE Lighting; Sarfraz Dairkee, Founding Member, Emirates Green Building Council & General Manager, Corporate Development & Engineering, MAHY Khoory & Co; Moheet Vishwas, Lead Systems Specialist, Infratech; P R Jagannathan, Sustainability Manager, Trakhees-EHS and Siddharth Mathur, Design Director, Studio Lumen. The discussion was moderated by Anoop K Menon, Editor, Power & Water Middle East. Excerpts from the panel discussion have been presented below. The complete transcript with speaker profiles is available online at powerandwater-me.com
Transformation underway in the lighting industry Agostino Renna: First, when you talk about climate change and energy efficiency, the importance of lighting emerges quite clearly. From that perspective, what we do as a business has become very relevant from a global scale. Second, the entire lighting industry is on the cusp of what I believe to be a technological revolution. We are moving from an environment of mass produced, disposable commodity products (incandescent lights that
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had to be disposed after the end of their 1,000 hours of useful life, industry players who differentiated themselves in terms of their ability to drive scale and mass production so that customers would buy more) to LED luminaires with a useful life of about 15 years. In fact, customers and end users are starting to view this technology as more of a strategic asset versus a disposable commodity. As is the case with new technological developments, there is a lot of information out there, some accurate, some not so accurate. As a leading
industry player, we feel that it our responsibility and obligation to provide useful information to the lighting community and educate them on the dos and don’ts of LED. From my interaction with customers, I have identified three barriers that tend to get in the way of making investments in LED. One, I find customers debating this is going to cost me money before I can save money, so how can I come up with the initial capital to invest in a LED lighting system? Second, due to gaps in information there is uncertainty around what the technology is capable of.
People are out there talking about 20-25 year warranties on LED products. Customers are thinking - is that true? Am I making the right choice? If I wait for two more years, will I get something better? So there is a need to help customers understand where we are in the evolution of this technology. Third, the risk associated with the outcome. All these investments are predicated on essentially two things – return on investment and carbon footprint reduction. Customers want some level of certainty that the economic case and the environmental case will materialise. It follows that the winners will be those who can go to market with propositions that basically help customers understand: • Where will they get the money to invest? • How to select the appropriate technology? • How to potentially guarantee the outcome - the economic outcome or the environmental outcome
That’s the direction we are very excited about because it’s something that GE Lighitng can do well. Sarfraz Dairkee: I agree with Mr Renna’s observations. By increasing the life of the lighting products, we can reduce the damage to the environment. Mass produced but easily adaptable to local needs could probably be the answer for high value items to be used for longer periods. When it comes to cost, this is something has always been addressed in the building industry through the integrated design process. We have to look at the possibility of the particular design doing more than one job. For example, when you produce light, the inevitable corollary is heat at almost 70%. We may have to look if the heat could be made useful somewhere. In the context of lighting industry in the region, I think it requires far more studies as compared to any other part of
the world. We require air-conditioning for 6,000-7,000 hours out of 8,760 hours. Whatsoever heat you are adding, an equal amount of energy will have to be spent to remove the heat from that environment. If we try to integrate that particular factor in our design system, our answers would be probably different. Of course, LED offers a very significant advantage compared to CFL by being amenable to automation to deliver the correct amount of light when and where we need it.
Challenges of adapting LED lighting to the region Moheet Vishwas: From a control perspective, the idea is to give the end user as much of control and analysis over the lighting system. At the same time, we try to incorporate as much of daylight as possible because this region has abundant sunlight. But the inherent challenge there is how to incorporate daylight without affecting the thermal envelope of the POWER & WATER MIDDLE EAST / JUNE 2013
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ROUNDTABLE
building as very complex calculations go into designing the building’s cooling system. The client usually decides with the contractor on the lighting – halogen or LED or CFL - depending on his confidence level with the technology. A major chunk of the efficiency in lighting is influenced by the lamp used. While LEDs are very efficient, there is a significant cost factor associated with them. Perhaps, solid warranties could offer a way to mitigate the cost and risks. We offer multiple control approaches based on occupancy or scheduling depending on the building type – if it is residential buildings, we can do energy metering and educate the tenants on their consumption trends and how they can save on their electricity bills through energy-efficient. Savings are a major attraction for the building’s tenant and the client or landlord.
P R Jagannathan: We have mandatory green building regulations that have been enforced from 2008. We also have a set of regulations for different built environments. Globally, buildings are responsible for a third of the emissions. In a building, lighting is the highest consumer of electricity after HVAC. In this part of the world, 80% of a building’s load can be HVAC due to the harsh environment. By reviewing various energy models on numerous projects, we have seen that the lighting load could vary anywhere from seven per cent to 70%. Lighting becomes the dominant load in buildings that don’t have air-conditioning, like large warehouses. By following efficient energy design practices and complying with regulations, our records show that you could save up to 30% of the energy. But the major challenge is psychological as people tend to prefer tried and tested.
The concept of integrated design is used rarely. If a place doesn’t require light or has sufficient day light, you need to ask yourself if you need lights. However, if the place needs lighting, we need to take a space by space approach. Find out how much light you require and then decide on the type of light. Choice of lighting is a function of the size of the project, feasibility, operating hours, etc. In the recent past, there has been a tendency to go for alternative lighting such as LEDs – for example, we have 50W Halogen low voltage replaced by 7W LEDs; we have 400W high-bay lamps of warehouses being replaced 100W or 125W LEDs. LEDs are also good candidates for retrofits. While LEDs are now widely accepted, they are yet to reach the maturity and assurance that CFLs enjoy. We had reviewed a hotel project where the theme had a dominant role as opposed to the regulatory requirement. The project did get certified but the point I want to bring out is that sometimes, the owner’s requirement might play a significant role which leaves us very little room for aggressively enforcing the regulatory requirement. Cost is also a concern – people may not be able to deploy LEDs straightaway so they would rather have their high-bay lamps considering the cost and the fact that for the nature of their operations, they are not able to get significant payback. Also, lighting design is a system design which starts with integrated design, identifying the needs, using the right technology to cater to those needs. It doesn’t stop with design and bill of quantities alone; it goes a step beyond to payback analysis based on the genuine operating hours of the client. You have to spend time working these calculations out - thumb rules aren’t of much use here. Siddharth Mathur: You cannot have a ‘one size fits all’ approach towards designing lighting systems. So LED is not a single-point solution to all your lighting needs. Also, LED is a light source that is susceptible to ambient heat. That’s where the application part is extremely important – for example, are you install-
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ROUNDTABLE
ing it outdoors where we have very high ambient temperatures? It may not work to expectations unless we are sure that due diligence has been done as part of the manufacturing process of that particular product. If we are using LED indoors, there is a better chance of it being successful. Again, if it is being installed in ceiling voids, you need to know what is the structure of the ceiling voids, what is the ambient heat in those ceiling voids? LEDs emit heat into the ceiling void so their heat sink is extremely important. That has an impact on the life of the LED and ultimately, has an impact on the Return on Investment (RoI) as well. One needs to have a holistic overview of the entire system and a good combination of needs and wants.
How can lighting a play a role in mitigating climate change? Solaiman Al-Rifai: I believe that lighting is a very crucial and important subject, especially in facilitating the transition into building sustainable cities in terms of the UAE’s green growth strategy. When
the government looked at what could be done to develop a green growth strategy, they realised that by enforcing regulations and policies without involving or engaging the stakeholders would be ineffective in achieving the green growth goals. The government realised that they need to set certain thematic areas as an approach – one of them would be engaging all stakeholders, building their capacities, having them understand their roles and responsibilities, finding out what works for them and giving them some kind of ownership. As the eminent panellist before me said, a one size fits all approach cannot work. We also need to analyse the behaviour to understand why people prefer cheaper options over LED, for example, and what kind of policies and governance, what kind of tools need to be put in place. A step by step approach with a pilot project is a sure way to success. At Dubai Carbon, we align ourselves to the government’s strategies and initiatives. We promote Green Growth by bringing in investments and introducing best practices.
We act as market enablers and assist in the environmental economics of running such projects. We assess efficiencies and resources and understand how we can move towards a more efficient management of available resources. We conducted an interesting exercise in Dubai by calculating the baseline of CO2 emissions and found that 1/3rd of the emissions came from the electricity sector. To reduce the emissions from electricity consumption, we decided to tackle the ‘low hanging fruits’ – looking at smaller amounts of investment before moving towards larger investments. We see a key role for lighting in this regard in terms of not requiring too much capital as investment but having a very large impact in terms of reducing carbon footprint. For example, we have something called the Dubai CFL initiative, which involves the distribution of almost 800,000 CFL lamps among buildings in certain areas of Dubai. This will achieve an emission reduction of 26,000 tonnes of CO2. (To read the rest of the transcript, visit powerandwater-me.com) POWER & WATER MIDDLE EAST / JUNE 2013
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Maxim(o)m Impact Asset management software like IBM Maximo can help the region’s utilities maximise the value of their asset investments. Hani Atout, Managing Partner, eSolutions Maximo and Alex Sanders, Consulting Manager, eSolutions Maximo spoke to Anoop K Menon on Abu Dhabi Water and Electricity Authority’s (ADWEA) journey with Maximo which started nearly 11 years ago.
A
bu Dhabi Water and Electricity Authority (ADWEA) was like any other government organisation,” reminisced Hani Atout, Managing Partner, eSolutions Maximo while providing a historical context to Maximo implementation within the utility. “Processes were manual and weren’t very efficient. After they decided to privatise, they wanted to streamline their operations and were looking for system to achieve better utilisation of assets, inventory and work hours.” In the run up to ADWEA’s privatisation, Hani and colleagues were implementing Maximo for the ADNOC Group where most of the group companies had selected the solution due to the Y2K issue. “When ADWEA privatised, many key people left ADNOC and joined ADWEA,”
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said Atout. “Due to their experience with Maximo, they recommended it to ADWEA to improve operations. In fact, ADWEA was totally manual while ADNOC was using legacy IT systems.” When ADWEA issued an RFQ to implement a Computerised Maintenance and Materials Management (CMMMS) system, the fact that lot of people within ADWEA were ex-ADNOC, were familiar with Maximo and its capabilities and the successful implementation at ADNOC all worked in Maximo’s favour. “We implemented Maximo in maintenance, inventory, purchasing and contract and integrated to Oracle Financials at the time,” said Atout. “As a lot of key people were exADNOC, they were keen on implementing the system to enhance operations.” As with all technology implementations,
there was resistance to the project. But ADWEA’s then Chairman, His Highness Sheikh Diab bin Zayed Al Nahyan, directed that everybody should use the new system, ensuring management commitment and a top down enforcement of the system. To make the transition easier, employees were trained on the system. To ensure the implementation went smoothly, the eSolutions Maximo team carried out GAP analysis for all the modules and wrote the functional specification business process document. Once the approvals came through, the team would configure the system to meet the requirements and carry out data migration from legacy systems. ADWEA appointed Howard Finley to gather data for them while eSolutions Maximo worked on the integration side. Atout pointed out that ADWEA have
Asset management
upgraded their systems twice in 11 years, which enabled them to get a lot of functionality while correcting things that were not optimal for them in the previous implementation. “I would say that they have very good visibility of their assets, a very good idea of how much they are spending on them and which ones are performing,” he noted. A new functionality that ADWEA has gained with the upgrade is CUE (Compatible Unit Estimating), which is the ability to get very accurate estimates of work to be done by contractors based on common operations that take place within the transmission and distribution world. ADWEA can estimate how much material and manpower is needed to carry out routine complex operations like laying new lines and creating substation hook ups. “This is a new functionality in the Maximo for the utilities version and has been quite successful for them,” noted Atout. Alex Sanders, Consulting Manager, eSolutions Maximo contrasted his experience during the initial implementation and the recent upgrade. He said: “When we first trained their users 11 years ago, we were sent people who didn’t have the ability to read and write even though it was a perquisite, and some of them had never used a computer before. We had users lift the mouse off the table not sure how it worked. When we trained them last year, we found these users challenging us so much that we had to provide a suitably experienced trainer because they knew more than even our people. They had come a long way in terms of their knowledge of asset management software.” During the first roll out, ADWEA told the eSolutions Maximo team that they only wanted their existing processes to be mapped in Maximo. “The reality was more of a hybrid where some of our ideas were incorporated and some of their processes remained as they needed it to be,” said Sanders. Atout added: “Apart from ADWEA, we have also implemented Maximo in Dubai Electricity & Water Authority (DEWA). Our solutions have been implemented in 10 regional power generation companies.
Hani Atout, Managing Partner, eSolutions Maximo
We have not only taken the message of ADWEA to other utilities but also other companies that possess complex plant and equipment.” Sanders emphasised that a critical factor behind the success of Maximo implementation in ADWEA was management support and end-user involvement. “You never want to begin an undertaking like this without management commitment,” he continued. “Departments like operations, warehousing and procurement need to be dedicated to the project implementation. If not, their requirements will not be met. Also, such projects should never be run by the IT department. IT should not lead it or influence it to the same level as the users who are going to end up with the system.” This raises the question– why is asset management critical for utilities? “It is the thing that helps them get their money at the end of the day,” responded Saunders. For example, for an oil and gas company, the main assets are refineries, pipelines, wells, valves and motors. Every single component and tens and thousands of different pieces of equipment that make up their assets need to perform at the optimal level all the time in order for the company to run its operations. If they are producing millions of barrels a day and
selling at USD100/barrel, and if they face a shutdown of just a few hours, they have already lost a fortune, which is going to affect the company and the country. “Our favourite customers are always the asset intensive organisations because when they lose their assets or when their assets contribute to a shut down, they lose money for the entire time those assets are down,” said Sanders. “If we can help them produce more efficiently and cost effectively and with less interruption, we have paid back many times over.” Some of the benefits that are not quantified in terms of cost are better integration of data systems, better communication between the departments, more routine when it comes to doing daily work and more visibility. “You don’t have the problem of people losing papers, invoices and purchase orders or nobody taking care of the work if somebody goes on leave,” said Sanders. “The system handles these kinds of things very well. You can enforce routines, processes and provide visibility on the process because they are all electronic.” Another important benefit is documentation. In the past, when documentation related to assets was on paper, they tended to have a very short life cycle. Whereas a corporation will last POWER & WATER MIDDLE EAST / JUNE 2013
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Asset management
Alex Sanders, Consulting Manager, eSolutions Maximo
longer than its employees, the paper work and the information that is useful in that paperwork, tends to retire along with the experts who know everything about the assets. One of the benefits of implementing asset management systems is that the documentation becomes electronic and therefore, is around for a longer time than the experts. Such systems are also important for organisations seeking the PAS 55 asset management standard. “Not having a tool like Maximo means they simply won’t be able to get it,” claimed Sanders. “PAS 55 talks about line of sight or the ability to know what’s going in with your assets – a system like Maximo will definitely put you in the picture. In fact, if you are being audited for PAS 55, one of the things they will be looking for is your asset management system - whether it is paperbased or software based.”
Not a silver bullet Even today, there are companies who regard asset management software or enterprise software as a silver bullet
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that will make all their maintenance problems go away. “The fact is asset management software is not a pill which you swallow and everything gets better,” cautioned Sanders. “It is a process which takes time and a system like Maximo, when implemented for multiple departments and thousands of users, takes time to implement. Just the basic implementation will take nearly a year if it is a very large implementation.” Once that phase is over, people have to get used to the system, change the way they work and start doing things in a systematic way. The classic resistance to change will naturally invite management pressure on people reluctant to use the system. In fact, people are wary of such systems because they provide a lot of visibility to the management. “Once ADWEA realised how much redundant manpower they had, they were able to reallocate the manpower. Now in the minds of the individuals, they would just assume they would get fired as opposed to perhaps being put to better use elsewhere in the organisation,” said Sanders. The process of change takes many years. “When we go back to ADWEA every four to five years to do an upgrade, there are so many new things they would like to try and one or two things that didn’t work out very well and need to be changed,” continued Sanders. “Just because something was asked for earlier, it doesn’t mean it continues to be the best thing for the company. Organisations and people change all the time, government regulations change all the time and new ideas emerge from other organisations.” “A nice thing about products from a company like IBM is that they make significant investments into the product,” said Atout. “The product always retains its freshness and always has new functionality coming in so upgrading is very desirable to gain new functionality and to fix any old problems.” When it comes to ownership of asset management systems, a trend with large asset intensive organisations is the setting up of an asset management department or division that becomes responsible
for the database being built up by the system. The other scenario is where the system’s ownership is distributed between maintenance, procurement and IT with each part owning the system from different points of view. Sanders explained: “Procurement will own procurement data, maintenance will own their operational work management data, sometimes operations are involved but at a low level and IT will own the system as a system and provide for its continued sustenance in terms of database and software operating systems, licensing and so on. End of the day, it is owned by the organisation and not so much by a department.”
The future road map Future versions of Maximo are expected to be smarter, with more intelligence and analytical capabilities. Sanders said: “If we look at the road map of Maximo, we see more and more modules coming in for making informed, intelligent decisions and even predictive decisions. They will enable more optimisation, integration with smart metering; they will be more instrumented and interconnected. Basically, we are trying to make Maximo a smarter product using as much intelligence and experience that can be possibly poured into one product.” Future versions will seek to extract value out of the huge quantities of data coming out of highly instrumented and smart production environments. “The focus of our R&D is on reading and analysing that data. We want Maximo to be smart and capable of helping asset managers look at trends and patterns, make predictive assertions and change the way they do their business,” said Sanders. He claimed that the modules for predictive analytics are also getting more and capable. “Because so many factors go into them, it is understandable if people are unable to trust or tend to disregard the output of predictive analysis,” noted Sanders. “But as these systems get better, you will see people start making decisions based on what they predict is likely to happen. As inputs get better, output gets better too.”
The Premier Meeting Place for the Iraqi Power Industry Produced By
17 June 2013 | Intercontinental Park Lane | London | UK
Distinguished Speakers Include:
H.E. Thamir Ghadhban Chairman of the Advisory Commission to the Prime Minister Iraqi Government
H.E. Oudi Awaad Kadhim AL-Hussein Chairman of the Sub-Committee of Electricity in the Oil & Energy Committee Iraqi Parliament
Proud to be working with
Participation from
Associate Sponsor Nafa Abdulsada Ali Al–Humeadwe Director General Ministry of Electricity, Iraqi Government
H.E. Dr Ali Faydh MP Iraqi Parliament
Contact Us Abdulrazzaq Nimr Aylan Al Buatiya Director General, Directorate General of Electrical Transmission Projects Ministry of Electricity, Iraqi Government
David A Lockhart Senior Legal Advisor, USAID Energy Policy Project Advanced Engineering Associates, Inc
www.cwciraqpower.com
Samuel Edwards +44 20 7978 0016 sedwards@thecwcgroup.com
POWER & WATER MIDDLE EAST / JUNE 2013
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POWER & WATER ME 5th ANNIVERSARY AWARDS
December 2013 Dubai, UAE
O
ur 5th Anniversary of the Power and Water ME Awards recognises the names leading companies and organisations that have made significant contributions to the advancement of the region’s Power and Water industry. Celebrating five successful years of scintillating ceremonies in Dubai the 2013 Awards will be a pinnacle occasion for all. The selection of winners from amongst the nominations received will be made by our independent judging panel which is a comprised expertise from both the power and water arenas. The winners will be announced in December with a total of 9 awards being presented to the most proficient projects and programmes at our exquisite Awards Gala Dinner.
FOR SPONSORSHP ENQUIRIES PLEASE CONTACT:
LIAM WILLIAMS Associate Publisher liam.williams@cpimediagroup.com +971 (0) 4 375 1511
GINA O’HARA Commercial Director Email: gina.ohara@cpimediagroup.com +971 (0) 4 375 1513
JASMINE KYRIAKOU Project Manager & Marketing Email: jasmine.kyriakou@cpimediagroup.com +971 (0) 4 375 1506
Nominations will be open from 10th June 2013 To submit your nominations online, please visit: www.powerandwater-me.com/awards
Celebrating the outstanding achievements of the Power & Water Industry The fifth edition of the Power & Water ME Awards will be presented to outstanding nominations in the following categories: • • • • • • • • •
Energy Efficiency Leader Innovative Project of the Year - Water Innovative Project of the Year - Power Water Efficiency Leader Environmental Commitment Award Corporate Champion – Power & Water Stewardship School Champion - Power & Water Stewardship Water Company of the Year Power Company of the Year
HARRY NORMAN Director Email: harry.norman@cpimediagroup.com +971 (0) 4 375 1502
ANNIE ARIF Business Development Manager Email: annie.arif@cpimediagroup.com +971 (0) 4 375 1509
WATER & WASTEWATER
Integration’s BIG value
Hermann Wartinger
Ahmed Fawzy
Schneider Electric claims that its EcoStruxure integrated system architectures make water and wastewater management efficient, productive, and green from the smallest pumping station to the most complex treatment plant. Hermann Wartinger, Water & Wastewater Solutions Marketing Director, Schneider Electric spoke to Anoop K Menon on how EcoStruxure delivers these benefits. He was joined by Ahmed Fawzy, Industrial Solutions Sales Manager, Industry Business, Schneider Electric. Could you tell us a bit about yourself and your responsibilities? I am part of the plant solutions team at Schneider Electric. Everything related to automation in Schneider Electric comes from this team, which covers all the industry segments. I am responsible for ensuring that our products and solutions fit the needs of the water and wastewater segments. Typically, we start at the field level, make sure the architectures meets the requirements of the segment and build our solutions or software on these architectures and products. Starting from the SCADA (Supervisory Control and Data Acquisition) level, we provide segmentspecific solutions under EcoStruxure architecture.
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How does EcoStruxure drive energy efficiency in water and wastewater treatment? When it comes to energy efficiency, we start at the field level combining the process used to treat the water with all the energy elements. We make sure that all the devices, whether they are responsible for operating the process or particular circuit breaker or power meter in the power distribution process are using the same architectures and the same communication technologies to communicate to the same controller and transfer the data to the same SCADA system. What we aim to do is break the data silos traditionally present between process and power. We combine this data and turn that into information getting meaningful
Key Performance Indicators (KPIs) for the user. Even at the control level, by having all this information and devices on the same architecture, we can do things like simple load shedding or demand response management in the controller itself. This is energy management at the different levels. In fact, our solutions can save up to 30% in operating and design costs. In a typical wastewater treatment plant, what would be the target areas for energy efficiency solutions? In general, when it to comes to understanding energy efficiency or energy management in a plant, we begin with power meters to get a good idea of the plant’s energy consumption. In
wastewater treatment specifically, the biggest energy consumer is aeration so we focus on that area. We also provide specific solutions to improve the process. For example, where we provide a solution based on Advanced Process Control (APC), we simulate the aeration process in a computer in a model and based on the current data we get from the SCADA system and the historical data, we predict the situation in the plant. By predicting, we influence the process by modifying the parameters and in the end, improve the process and lower the energy consumption as well. In fact, we work with brown field as well as green field sites. With the former, we start with our advanced services called EnergySTEP. We go and audit the plant in terms of energy consumption by looking closely at the process. When we do an audit for an APC solution, for example, we collect data over a period of two to three weeks, and come back to the customer with a detailed proposal that also includes a Return on Investment (RoI) calculation. The past few years have seen utilities in the region rolling out SCADA systems to get a handle on the operations side of things. Are they ready to look at energy efficiency side as well? Ahmed Fawzy: In fact, we have seen water and wastewater segments beginning to acknowledge the
importance of energy efficiency in the realm of process. In the UAE, a municipal customer has asked to us audit their irrigation network’s pumping stations, evaluate the energy consumption and propose how to improve the situation. People are increasingly aware that they should tackle not only the process requirement but the energy efficiency requirements as well to reduce their operating costs. We combine both on one platform and educate the customers about the benefits of the same. In what direction do you see your products and solutions evolving in the water and wastewater area? From my meetings with customers, what I have gleaned is that while they want us to solve their problems at the control level, more often than not, they want to know how to leverage the data residing in their IT systems. They tell us: we made huge investments to get this data, and now have huge amounts of data, so what should we do to leverage the data. What we propose is to turn this data into information. This is exactly where I see the evolution of our systems and is something we are already doing. We tell our customers not to stop at the control level; instead, use integrated software tools at the operational level to improve the situation. This can be simple dashboard systems -
for water networks, for example, we have online hydraulic simulation systems to improve the operations. I feel that this is really important and interesting for the customer; and on top that, at the enterprise level, if they operate more facilities, they could look at collecting all the data in one place and combining the data to get more information. Could you comment on a signature project? One of our biggest projects involved the water distribution network of one of the largest water utilities in the UK with a customer base of four million households. We helped them to improve their water networks to lower their Non Revenue Water (NRW) and optimise the energy used to bring the water to the households. What we have done is to integrate the different systems that are already available and manage all the data in a more efficient way. This includes new systems like Geographic Information System (GIS) and hydraulic simulation engine that have been combined with existing systems being used by the customer like Customer Relationship Management (CRM), Workforce Management and Enterprise resource planning (ERP). But what he is looking for and what we are adding is GIS hydraulic engine and SCADA to control the whole wide area application. In the end, it is all about integrating the different pieces to get the big value. POWER & WATER MIDDLE EAST / JUNE 2013
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PV’s organic generation Dr Harry Zervos, Senior Technology Analyst, IDTechEx examines the unique selling points and challenges for Organic Photovoltaics (OPV) in the next decade.
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he first two generations of photovoltaics, wafer-based and thin film devices, have seen mass market adoption in recent years, with different technologies characterised by varying degrees of success. Crystalline silicon platforms are by far the most successful, holding over 80% of market share, but are currently characterised by low profitability. Thin films have found success in markets where large land areas are available (for example, solar farms) or in parts of the world where weather conditions limit the power output of silicon modules (example, humid, hazy regions). These first two generations are now being followed by a third, which includes dye sensitised solar cells (DSSC) and organic photovoltaics (OPV). These devices offer different attributes and are characterised by different performance metrics. As discussed in the IDTechEx Research report “Organic Photovoltaics (OPV) 2013-2023: Technologies, Markets, Players” (www.IDTechEx.com/opv) organic photovoltaics, although potentially a disruptive technology, do not currently offer very high efficiency levels or lifetime and these characteristics limit their market uptake. On the other hand, OPVs can offer versatility in form factor, improved indoor performance and low capital expenditure for large scale manufacture.
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The report discusses in detail the market trends and forecasts for growth in the next decade, as well as the main sectors that will be initial target markets for organic solar cells. Organic PV: attributes, unique selling points and challenges The radar chart below compares the attributes of different PV technologies of all three generations described above. In order to draw it, module efficiency and lifetime have been normalised to 18% and 25 years respectively. Printability and flexibility of form factor are the
main characteristics in which organic PV outperform competing technologies but difficulties in achieving long lifetimes and higher efficiencies pose a barrier to further adoption of the technology. Based on our extensive interviews with players across the industry, including academics, manufacturers and potential end users, we have developed roadmaps tracing yearly developments in efficiency,
A radar chart comparing attributes of different PV technologies. Source: IDTechEx report ‘Organic Photovoltaics (OPV) 2013-2023: Technologies, Markets, Players’ (www.IDTechEx.com/opv)
MARKET REPORT
lifetime and cost levels of organic photovoltaics. Some of the main performance characteristics are discussed below.
on our understanding of the industry and announced lifetimes of organic PV cells from major developers, we have included three different scenarios: A. Interest in OPVs remains limited leading to reluctance from barrier companies to invest further. In this scenario, high performance remain achievable but at prohibitive prices.
I. Efficiency: We anticipate that the efficiency levels are likely to remain under 10% in the next five to eight years, even in tandem-cell modules. Our analysis suggests that no breakthrough in technology will occur and improvements take place slowly and linearly in time. This holds true in spite of the fact that a diverse range of active materials can be envisioned and synthesised for use in OPV cells. This means that OPVs will struggle to outperform more established technologies of today. As a conclusion, breaking the 10% barrier in module performance is not anticipated before 2022-2023. II. Lifetime: OPV device performance degrades severely when exposed to ambient moisture and oxygen. The net effect typically is that OPV cells die within days if not encapsulated while lifetime remains on the order of two to three years when passivated using existing flexible encapsulation solutions. Rigid glass encapsulation (such as float glass for instance) allows for 10+ years lifetimes to be achieved but of course, it compromises the attributes of flexibility in form factor. There is currently active R&D for developing flexible barriers with sufficient performance, solutions are explored based both on plastic substrates with transparent inorganic layers deposited on them (3M, Toppan, etc,) and on thin flexible glass developed by major glass companies such as Schott, Corning or NEG. Although able to reach adequate performance characteristic none of the current techniques offer favourable price points. Putting together a roadmap based
Extrapolated lifetime for organic photovoltaics. Forecast 2013-2019.
Highest performance barriers remain out of reach but an intermediate range of barriers become available at reasonable price points. In this scenario, the market pull stems from applications such as posters and point-of-sales, indoor consumer electronics, etc. The market pull is strong, leading to large-scale investment in barrier technology. This scenario is helped by the fact that OLEDs also suffer from a similar challenge, resulting in a synergy that pushes market demand. III. Cost roadmaps: The energy generation cost is the most critical aspect of a given PV technology. It largely determines the market demand and penetration. Based on potential future technology developments, we estimate a cost per watt metric, with assumptions that there wonâ&#x20AC;&#x2122;t be significant changes in factors such as: 1. The price points for transparent conductors 2. Low cost encapsulation such as glass 3. Small volumes of active materials due to limited market penetration In this case, even a 6.8% efficient organic PV module would be characterised by a cost of USD2.8/Watt. Based on the above analysis of efficiency, lifetime and cost developments in the next ten years, we are expecting OPVs to initially serve niche markets. As a result the overall value is expected to remain smaller than USD87 million in 2023 and the total installed capacity in 2023 at <74 MW. These are not large values considering that the total installed PV capacity in 2011 was 23-24 GW. Therefore, organic PV will remain a small market with approximately one per cent total market share.
POWER & WATER MIDDLE EAST / JUNE 2013
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PE PIPES
Go trenchless with PE
Tough PE pipe materials are ideal for trenchless installation, argue Borougeâ&#x20AC;&#x2122;s Andrew Wedgner and David Walton
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olyethylene (PE) pipes have had a long and successful history in renovating old pipeline networks to reduce gas and water leakage levels and to install new systems. In combination with modern trenchless installation methods, a new pipeline is installed at a lower cost without disturbing the life of the city or damaging the environment. However, whilst attractive from an economic and environmental viewpoint, trenchless installation methods can be demanding on the pipe by introduc-
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ing gouges and scores into the outside surface of the pipe which can develop into cracks. In response polymer suppliers have developed High Stress Crack Resistant (HSCR) PE100 materials which are able to cope with this surface damage without cracking. The knowledge that the stress crack resistance of the pipe is at least 20 times the minimum value specified in the international standards gives many engineers the necessary confidence to specify PE pipes in the most difficult circumstances as shown in the following examples.
Horizontal directional drilling project A one kilometre section of the water main from Waitakere Water Treatment Plant to Tram Valley Road, in Auckland, New Zealand needed to be installed under a native forest park by horizontal directional drilling (HDD). These areas of native forest are highly valued by the local population and are protected by the New Zealand government and therefore ,normal open cut installation was not permitted. The engineers from the water supply
PE PIPES
The 800mm diameter HSCR PE100 pipe strings ready for installation in Auckland, New Zealanwd
company, Watercare Services, specified that HSCR PE100 pipe material should be used as they were concerned about the difficult conditions and the 850x70.8mm PE100 pipe was manufactured by Tyco New Zealand in their plant at Hamilton in six metre lengths using BorSafe HE3490LS-H. The pipe was butt welded to form two 500 metre pipe strings on site and externally de-beaded ready for installation. The specialist drilling contractors of Central Drilling were presented with a number of challenges by the difficult soil conditions beneath the forest but finally in late October 2011 all was ready to pull through the polyethylene water main. This final stage went without a hitch and the new main will soon provide bulk water for the distribution companies to supply to their customers in greater Auckland for many years to come. Lining the leaking water mains in Shanghai Shanghai’s population is growing fast and has now reached 23 million people putting tremendous strain upon their water services. Whilst the water companies have worked hard to keep up with the demand and installed many new water mains since 1997 most of the system is still made up of cast iron and steel pipes, which readily corrode in Shanghai’s acidic water affecting the turbidity and the colour of the water supplied. Recently, the China Urban Water Association (CUWA) organised a one day seminar in Shanghai to discuss the different technical solutions available to renovate and replace old pipelines. On the
Lining a water injection pipeline in the oil fields of Oman using HSCR PE100 pipes (Photo courtesy : United Pipeline Middle East Inc.)
following day, the delegates were invited to a project by the Shanghai Fengxian Waterworks Company who used ‘Swagelining’ technology to renovate 270 metres of corroded steel water main under a wooded area of the city next to the Chuan
Shanghai Fengxian Waterworks Company used ‘Swagelining’ to renovate corroded steel water main Yang He Road. The new 300mm diameter PE100 pipe was pulled through a die which reduced the diameter to enable it to enter the old main. Once in position the load was released and the pipe expanded to form a close fit with the old host main. To ensure that the durability of the system was maintained BorSafe HE3490-LS-H PE100 material from Borouge was used by Jiangyin David Plastics to manufacture the pipe. In the Middle East The Daleel Petroleum Company produces oil in the Sultanate of Oman approximately 300 km west of the city of Muscat. Like most oil companies, they recycle process water and inject it back into the well to increase oil production. As the wells increases in age, the level of hydrogen sulphide and other contaminates in the process water also increases which in turn leads to rapid corrosion of the bore of the steel pipes. One alternative to replacing
these pipes is to use ‘close-fit’ internal lining using polyethylene which will significantly extend the life of both old and new pipelines. In a recent project, 30 km of eight inch diameter steel water injection pipes were lined by United Pipeline Middle East using their ‘Tite Liner’ technology. To ensure that the optimum lifetime was achieved the PE100 pipes were produced from BorSafe HE3490-LS-H high stress crack resistant material by the local pipe manufacturer Muna Noor Manufacturing in their Muscat plant. The individual pipe lengths were then welded into strings which were then drawn through United’s hydraulically powered roller reduction box which temporarily reduced the diameter of the pipe. This PE pipe can then easily be pulled through the steel pipe and once in position the load is released so the pipe can recover and form a tight compression fit with the bore of the host pipe protecting it from any future corrosion. Conclusion In response to the surface damage that can arise using modern trenchless technology, polymer suppliers have produced a range of HSCR PE100 materials to cope with these conditions without cracking. These materials provide engineers with the confidence to specify PE pipes in these very difficult situations and provide high durability solutions. (About the authors: Andrew Wedgner is Application Marketing Manager BU Pipe, Borouge; David Walton is Marketing Manager, Borouge) POWER & WATER MIDDLE EAST / JUNE 2013
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M ONSITE
The Largest Power And Water....
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ONSITE
....Desalination Plant In The Uae
Jebel Ali ‘M’ Station
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ubai Electricity and Water Authority’s (DEWA) M Station was inaugurated by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance, and President of DEWA.
The AED 10 billion plant generates 2,060 MW of power and 140 MIGD of desalinated water and is the backbone of power and water supply for Dubai. “We are now able to achieve a total production of 9,646 MW of electricity, and 470 MIGD of desalinated water to meet the current and future needs of the Emirate of Dubai, including planned expansion to further drive our urban prosperity and economic advancement,” said H.E. Saeed Mohammed Al Tayer, MD and CEO of DEWA. POWER & WATER MIDDLE EAST / JUNE 2013
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ONSITE
2 1 1. M Station was inaugurated by H.H. Sheikh Hamdan bin Rashid Al Maktoum 2. M station is expected to meet 20% of power and water demand in Dubai. 3. Two dual-fuel-fired auxiliary boilers are used during winter when power demand drops to generate steam for the desalination plant
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The package making up the combined cycle power plant comprises six F-class gas turbines from Siemens, three steam turbines from Alstom and six Waste Heat Recovery Boilers (WHRB) from Doosan. Thaere are three power blocks, each composed of: • Two F-class gas turbines, each of which generates 234 MW of electricity at ambient temperature of 50 degrees C. • Two post-fired WHRBs, each giving 427 tonnes/hour of steam at 103 Bar • One condensing steam turbine generating 218 MW of electricity M station’s design has flexibility built into it to manage seasonal fluctuations in demand. For example, during winter, power demand reduces by nearly 50%, which means insufficient waste heat steam. However, water demand is the same throughout the year, give or take a variation of 10-15%. The station is flexible so that the steam turbine stage can be bypassed directly to produce water. The three 220 MW
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4. There are 16 fuel oil storage tanks, each with a capacity of 20,000 cubic metres, with total fuel oil storage of 320,000 cubic metres. These are sufficient for 10 days of operation.
single-casing steam turbines enable the extraction of the large amounts of steam required for the desalination process. In fact, 80% of the steam produced can be diverted to the desalination plant if needed. Alstom supplied the three 220 MW COMAX steam turbines (and TOPAIR air cooled turbogenerators) for M Station. The desalination plant package consists of eight Multi Stage Flash (MSF) desalination units, supplied by Fisia, each with an output of 17.5 million gallons per day. Fisia claims that these are the largest individual desalination units currently being operated in the world. At lower sea water temperatures, each unit can produce up to 19 MIGD. M Station’s thermal efficiency measures at 82.4%. Unlike other DEWA power and water plants, M station draws water closer from the shore. Other plants have intake pipes going one to two kilometres out into the sea. To protect the station from oil slicks, given the
3
fact that it overlooks one of the busiest sea lanes for oil tankers, protection booms have been installed. M station has two dual-fuel-fired auxiliary boilers 390 tonnes/hour of steam at 20 bar each. When the supplementary firing is out of service, the auxiliary boilers are operated to produce the additional steam flow required for 100% water production. In emergency cases and for the unlikely event of a natural gas shortage, the gas turbines can also be operated with diesel oil. M station has water storage capacity of around 30 million gallons but if the water storage points of the station are considered, the aggregate storage capacity is 100 million gallons. Allowed NOx emission in normal operation is less than 25 parts per million. The auxiliary boilers and the supplementary firing facilities are also equipped with low NOx combustion facilities.
MARKETPLACE
Omicron CIBANO 500 3-in-1 test system (intro case) OMICRON’s CIBANO 500 is a 3-in-1 test system which combines a microohmmeter, a multi-channel timing analyser, and a coil and motor supply in a single, lightweight device (20 kg). This, the company’s press release claims, enables all standard tests to be carried out on all types of circuit breakers, either with power supplied by the station battery or by CIBANO 500. Software-supported testing CIBANO 500 is controlled via OMICRON’s Primary Test Manager (PTM) software which guides the user through the entire testing process. Once testing is complete, the user is provided with a structured test report, which combines all results in a single document, displayed as either a diagram or a table. Less wiring effort, more tests The CB MC2 contact module enables the user to directly attach one or more modules to the interrupter units and connect to CIBANO 500. As a result, the company claims, there is no need to rewire between tests increasing the safety factors. In addition, the CB MC2 enables dynamic contact resistance testing to detect signs of wear and tear on the main and arcing contacts. All tests can be carried out with the circuit breaker grounded on both sides. The CB TN3 transducer enables circuit breaker motion analysis and together with CIBANO 500 and a motion sensor, it checks the entire switch mechanism and the mechanical links during the opening and closing process. All measured data is transmitted digitally from the accessory devices to CIBANO 500.
Singer Valve Single Point Insertion Electro-Magnetic flowmeter
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inger Valve, a leading manufacturer of control valves has joined forces with McCrometer to introduce the first Single Point Insertion Electro-Magnetic flowmeter. The Singer Model 106-SPI-MV can be utilised with the metering valve as a standalone option or built into a 106-2SC-PCO pilot system to provide flowbased valve control. “The breakthrough lies in the accuracy of this flowmeter and immediate implementation,” said Mark Gimson, Business Development and Marketing Manager for Singer Valve. The company claims that the SPI-MV has been flow profiled and tested in McCrometer NIST traceable flow laboratory and is guaranteed accurate to the two per cent of reading throughout the specified velocity range. As it has already been profiled to match the Singer valve, it works right out of the box. The insertion probe extends into the flow stream, in one of the valve inlet connections and protrudes into the valve, equivalent to 1/8 of the valve diameter size. Singer Valve claims that the SPI-MV’s bullet nose profile eliminates clogging or build-up and as a single piece design with no moving parts, the SPI-MV sensor contains nothing to wear or break. The unit can bet installed on any of the Singer Valve models from 4” (100mm) to 36” (900mm) valve sizes. It can be installed on either side of the valve on the inlet connection and requires three pipe diameters upstream clearance. The sensor is rated for continuous submergence and is removable. It only protrudes from the valve 4.6” to 6.3” and only requires 8” – 12” clearance for easy maintenance. It is supplied with a convertor that not only gives an LCD readout screen but also gives a 4-20mA output along with 4 programmable digital outputs. Singer will be showing this product at ACE 13 in Denver, booth number #4052
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Schneider Electric Modular Power Distribution Units
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chneider Electric has launched 150kVA and 175kVA Modular Power Distribution Units, equipped with TP-1 rated isolation transformers that the company claims, efficiently deliver power to the load while minimizing cooling demand. The units feature quick status informational LEDs, integrated management, and breaker position monitoring capability for availability and manageability. They have a built-in circuit monitoring system to provide view of power usage throughout the distribution network. These units are available in three standalone models: 480:208V, 480:415V and 600:208V. The units feature a Protocol Data Unit (PDU) frame reduced from 750mm to 600mm rack widths with NetShelter SX heavy duty rack. The back plane supports up to 24 plug-in factory assembled and tested Power Distribution Modules that include breaker, cord, and connector in a quickto-install form factor. Added functionalities include load balancing with auto recognition of Power Distribution Module type, ampacity and length, as well as a ‘PowerView’ display interface that enables local management and monitoring. The new Power Distribution Units are fully compatible with StruxureWare Central. The 150kVA and 175kVA Modular Power Distribution Units join the complete line of Schneider Electric’s scalable power protection available for data centres and facilities of varied sizes.
SPOTLIGHT
Hanovia’s PureLine UV Ideal for food and beverage applications Hanovia’s new PureLine UV range provides chemical-free treatment and water disinfection for the food, beverage and brewing sector.
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oining the PharmaLine and SwimLine ranges, the PureLine is the industry-specific UV system from Hanovia designed to make product selection as easy as possible. All that’s needed to choose the correct model is the application and the required flow – the appropriate model is then simply selected from the appropriate datasheet. Hanovia will have already specified the necessary dose, chamber geometry, lamp type, surface finish, seal materials and connections that are typically required by that application. Special designs can also be supplied for users who have unusual requirements. Standard PureLine models are available for the disinfection of water, syrups, brines and for the de-ozonation of process water (designated D, S, B and DO respectively), with the range being supplemented by the ‘PureLine PQ’. Ensuring biosecurity of water systems, the Performance Qualified PureLine PQ is tested and approved by independent experts to the requirements of the USEPA UV Disinfection Guidance Manual (UVDGM). Benefiting from full flow bioassays conducted by independent engineers across a wide range of operating and water quality conditions, the PureLine PQ guarantees
99.999% disinfection at its maximum bioassayed dose. Providing proven, constantly displayed and verified disinfection, PureLine PQ is equipped with a calibrated absolute intensity UV monitor and controller, which automatically corrects the dose calculation as UV transmittance varies, without requiring an external UV transmittance monitor. This provides the user with an accurate and instant measurement of the PQ’s disinfecting activity. In addition, because the monitor remains outside the water flow, it can be removed and inspected without interrupting the process, allowing on-site verification using a portable reference UV sensor traceable back to a NIST standard. In addition, material certificates for all the FDA compliant wetted parts and an ability to cope with CIP/SIP (Clean-InPlace/Sterilisation-In-Places) provides compatibility with food and beverage requirements and above all ensures UV biosecurity of the highest level. Operating at a lower energy level, PureLine D is intended for general purpose disinfection of water or CIP solutions as part of a multi-barrier system, while the PureLine S and B systems are designed specifically for the
disinfection of sugar syrups, liquid sugars and for disinfection of brine in the meat packaging industry. The PureLine range utilise either High Output Amalgam or Medium Pressure UV lamps, whichever is most effective for the application in question. Lamp changing is a simple procedure that can usually be done by on-site personnel with no specialist training. With lamp life up to 12000 hours and with electronic ballasts and unlimited start-stop and variable output capability on some models, lifetime costs and energy consumption are optimised across the range. The entire range is rated to IP54 as a minimum, with options to IP65, and has a state-of-the-art controller with an onboard message display panel, as well as many other safety and alarm features. The PureLine range therefore offers the food and beverage industry a suite of UV treatment products optimised to meet the needs of their applications. The systems are easy to install and maintain and provide non-chemical treatment with no possibility of unwanted bi-products or residues. Above all, it provides the peace of mind that comes with a guaranteed disinfection performance. POWER & WATER MIDDLE EAST / JUNE 2013
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EXPERT COLUMN
Cloud control for buildings
The convergence of IT and building automation is expected to revolutionise the building controls industry in the days to come. By Moheet Vishwas
A
fter their introduction almost six decades ago, control systems have evolved quite remarkably in the area of building automation. It was in the 1950s that control systems were first introduced in the form of pneumatic controls. Much later, in the 70s and 80s, they steadily graduated to the more versatile computer-based Direct Digital Control systems. Over the years, applications within the building started expanding to include HVAC, lighting, fire and security which brought about a change in control systems’ architecture. The start of the millennium saw the introduction of network controllers. Integration and interoperability of various control systems through a variety of propriety communication protocols took centre stage. Network controllers enabled wide-spread coordination, scheduling, data monitoring, trending and dynamic graphical representation through user-friendly interfaces. After the arrival of Internet in the last decade, easy remote access to control systems gained prominence. The next big technological leap in this evolutions seems to be cloud computing. Modern building automation systems monitor, control and analyse everything they see and sense. If anything, they have just one drawback – large capital costs directly proportional to the size of the facility. By capital cost, I mean costs associated with the hardware, wiring, installation, commissioning, and programming. If you add maintenance and operating costs such as licensing keys and software, the potential clientele for Building Automation Systems (BAC) companies are often limited to large building owners. However, I expect will
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can be a real game changer here. Here is a scenario: since solutions for small buildings include standalone controllers that are neither connected to a network nor even remotely accessible, cloud based services can facilitate remote services. This eliminates the need for an onsite server and network controllers. Local controllers can connect to an online service via a Wi-Fi connection over the Internet allowing customers to access building data through lap tops or desk tops, tablets or even through smart phone apps. This means that a huge segment of the market now has access to very affordable, web-based, online version of DDC control systems. For small/medium buildings that make up majority of the building stock in the UAE, such cloudbased systems can give owners access to more flexible energy monitoring and facility management features. A useful analogy would be advantages that make e-mail so much more effective compared to the conventional postal system. For clients who own large facilities such as hospitals, government buildings and hotels, a cloud computing based environment can provide access to real time data of all their distributed facilities from a single location while permitting wide area control. For example: facilities management team in hotel chain with global footprint can access the analytics and functionality of their systems from anywhere, at anytime with any device having an Internet connection. The energy performance profiles and other nitty-gritty of each building portfolio can be compared and trended and the information can be used to improve indoor comfort levels, increase energy
efficiency and conserve energy as well. Another distinct advantage offered by cloud computing is that it will make way for easy execution of projects. Since it allows the flexibility to remotely expand a system’s architecture, more sophisticated logic algorithms can be developed for building automation applications. For example, some of the vital inputs for automating an AHU (Air Handling Unit) are temperature, humidity, air flow and pressure. These variables are part of a chain of interlocking cause and effect type of control actions. A DDC located close to the AHU can gather, process, execute and transmit this information wirelessly over the Internet to a cloud server. This data can then be utilised to trend the AHU’s performance against its design parameters. After the data trend for all systems within a building is made available, the programmers can develop even more accurate building automation solutions to optimise the building to its fullest extents. While we speak of cloud computing as the future of building automation, the fact of the matter that cloud is part of our day-to-day life. When we use online social networking sites as Facebook, Twitter or secure webmail services like Gmail, our information is stored in the cloud to make it accessible from anywhere at our convenience. In fact, hosted building automation solutions are fast gaining attention. However, the recent ethical hacking of the building controls system of Google’s office in Australia by a group of researchers also highlights the importance of securing these systems. (The author is Lead Systems Specialist, Infratech Controls)
Emiratestenders.com Your Business Information Provider in the UAE
PROJECTS / TENDERS / ENQUIRIES Emirates Tenders is focused on providing first hand, timely & up-to-date information about the latest projects, tenders enquiries & business deals in the United Arab Emirates. Its an online service designed to help organizations to identify new business opportunities and stay ahead of their competitors. Members of EmiratesTenders enjoy the following benefits: • Access to detailed real time database on projects, tenders and enquiries in the United Arab Emirates which are updated on a daily basis.(Details provided are: Tender Name, Posting & Closing Date, Tender Cost, Budgets, Contractors, Consultants, Tender Categories, Status , Remarks and other available information ) • A powerful search engine designed to facilitate easy retrieval of information in accordance with specific requirements. • Daily e-mail notification on preferred areas of business. • Contact details for Clients, Consultants, Contractors, MEP’s, Architects etc available for ongoing projects. • Archive of over 100,000 projects and tenders for market research and analysis. • A weekly compiled E-magazine consisting of projects and tenders in the U.A.E & Middle East Regions. IN-DEPTH COVERAGE & INFORMATION ABOUT PROJECTS AND TENDERS ARE AVAILABLE FROM DIFFERENT COUNTRIES IN THE FOLLOWING PACKAGES Name of Country United Arab Emirates Saudi Arabia Kuwait Oman Qatar Bahrain Entire Middle East
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For enquiries please contact: +971-2 - 6348495 Email: sales@EmiratesTenders.com Website: www.EmiratesTenders.com POWER & WATER MIDDLE EAST / JUNE 2013
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TENDERS & CONTRACT
Project Name Description
Budget ($) Posting Date Period Tender Type Territory Client
Status Last Updated Tender Categories Remarks
Solar Power Plant Project-4 Build-Own-Operate (BOO) contract for construction of a photovoltaic solar power plant with capacity of 10 MW. 23,000,000 March 19, 2013 2014 Project Jordan Company Name: Philadelphia Solar (Jordan) Address: Al Qastal Industrial Area 2, Airfreight Road Pin: 143808 City: Amman 11814 Country: Jordan Tel: (+962-6) 471 6601 Fax: (+962-6) 471 6602 Email: info@philadelphia-solar.com Website: http://www.philadelphia-solar. com New Tender March 19, 2013 Power & Alternative Energy This plant is proposed to be built in the Manara region on the outskirts of Mafraq. Work on the project is expected to commence immediately after signing the BOO contract and completed in (16) months.
Consultants
Status Last Updated Tender Categories Remarks
Project Name Project Name Description
Posting Date Tender Type Territory Client
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Khiran Independent Water & Power Project Engineering, procurement and construction (EPC) contract to build an independent water and power plant in Khiran, with capacity of 2,500MW of power and 125 million gallons a day (g/d) of water. February 22, 2011 Project Kuwait Company Name: Partnerships Technical Bureau (Kuwait) Address: Touristic Enterprises Co. Bldg., 2nd Floor, Al-Jahra Street Pin: City: Shuwaikh Country: Kuwait Tel: (+965) 2496 5900 / 2496 5902 Fax: (+965) 2496 5901 Email: infor@ptb.gov.kw Website: http://www.ptb.gov.kw Financial Consultant Company Name: BNP Paribas (France) Legal Consultant
POWER & WATER MIDDLE EAST / JUNE 2013
Description
Budget ($) Posting Date Tender Type Territory Client
Company Name: Chadbourne & Parke LLP (USA) Technical Consultant Company Name: Lahmeyer International GmbH (Germany) New Tender March 18, 2013 Power & Alternative Energy Water Works The project is located to the south of existing Al-Zour South power & water project in Kuwait and will include a 400kV substation. Low-sulphur fuel oil, gasoline, crude oil and/or natural gas will be used for fire the plant. Desalination component will use multi-stage flash, multiple-effect distillation and/or reverse osmosis technology. A special purpose vehicle (SPV) will be established to design, build, finance, operate and maintain the facility. The SPV will sign an energy conversion agreement together with a power and water purchase agreement with Ministry of Electricity & Water. A consortium of France’s BNP Paribas, US’ Chadbourne & Parke and Germany’s Lahmeyer International has signed a mandate to advise on this scheme. Combined-Cycle Power Plant Project - Jizan Economic City Engineering, Procurement and Construction (EPC) contract to build an integrated gasification combined-cycle (IGCC) power plant with capacity of 2,400 MW in Jizan Economic City. 2,000,000,000 December 11, 2012 Project Saudi Arabia Company Name: Saudi Arabian Oil Company (Saudi Aramco) Address: Saeed Tower, Dammam-Khobar Highway Pin: 151 City: Al Khobar 31952 Country: Saudi Arabia Tel: (+966-3) 872 0115 / 810 6999 Fax: (+966-3) 873 8190 Email: Website: http://www.saudiaramco.com FEED Consultant Company Name: Kellogg Brown & Root (Saudi Arabia)
TENDERS & CONTRACT
Consultants
Status Last Updated Tender Categories Remarks
Project Name Description
Budget ($) Posting Date Period Tender Type Territory Client
Financial Consultant Company Name: HSBC Ltd. (Saudi Arabia) Project Manager Company Name: Kellogg Brown & Root (Saudi Arabia) New Tender March 14, 2013 Power & Alternative Energy This project is in Saudi Arabia. The power plant will supply 2,400 MW of electricity to Jizan Economic City, 500 MW of which will go to Jizan Refinery. UK/Dutch Shell is the technology provider for the scheme. US’ KBR has been appointed to carry out the front-end engineering and design (FEED) study and project management consultancy (PMC) contract. It will be split into five packages: - Air Separation unit/oxygen supply - Combined cycle power plant - Gasification - Offsites & Utilities - Sulphur Recovery. After the completion of pre-qualification process, client will issue tenders for the packages to the successful EPC contractors. A lump-sum turn-key (LSTK) contract model is being used to execute the scheme. Client has signed a gasification licensed technology agreement with UK’s Shell Global Solutions International. The agreement includes licensing of Shell gasification and acid gas removal technologies and provision of engineering services. Shell’s CRI/ Criterion catalysts and a sulphur recovery unit (SRU) will also treat off gases from acid gas removal unit. Musandam Independent Power Project Build-own-operate (BOO) contract to build 100-120MW gas fired power plant at Musandam. 150,000,000 January 10, 2013 2014 Project Oman Company Name: Oman Power & Water Procurement Company S.A.O.C Address: Muscat International Centre, 2nd Floor, Suite 504 Pin: 1388
Consultants
Status Last Updated Tender Categories Remarks
Project Name Description Budget ($) Posting Date Tender Type Territory Client
Status Last Updated Tender Categories Remarks
City: Ruwi PC 112 Country: Oman Tel: (+968) 2482 3028 / 2482 3000 Fax: Email: ahmed.busaidi@omanpwp.com Website: http://www.omanpwp.co.om Legal Consultant Company Name: Curtis, Mallet-Prevost, Colt & Mosle LLP (Oman) New Tender March 12, 2013 Power & Alternative Energy This project is in Oman. The purpose of the project is to supply electricity to the region. Natural gas will be used as feedstock in the project. Client is the sole off-taker from the project. Full output of the plant will be sold to Rural Areas Electricity Company. Request for qualification (RFQ) for the EPC contract has been issued. It is understood that short-listing of prequalified companies for the BOO contract is being finalized. Pre-qualified companies for the BOO contract are expected to be shortlisted by the end of March 2013. Request for proposals (RFP) for the BOO contract is expected to be issued soon. Power Plant Project - En--Naga Field Construction of a power plant with capacity of 5-10MW at an oil field. 50,000,000 March 12, 2013 Project Libya Company Name: Harouge Oil Operation (Libya) Address: Pin: 690 City: Tripoli Country: Libya Tel: (+218-21) 333 0081 Fax: (+281-21) 333 0490 Email: info@harouge.com Website: http://www.harouge.com New Tender March 12, 2013 Power & Alternative Energy This plant will be built at En-Naga field in Sirte basin, east of Libya. Client is currently working on the basic engineering for the project. A tender for the main contract is expected to be issued this year. POWER & WATER MIDDLE EAST / JUNE 2013
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TENDERS & CONTRACT
Project Name Description
Budget ($) Posting Date Period Tender Type Territory Client
Status Last Updated Tender Categories Remarks
Project Name Description
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Grand Basra Water Project Execution of the Grand Basra Water project comprising a water distribution network, building a major pipeline to carry water to all parts of the province, and constructing a strategic storage tank with capacity of 50,000 m3 along with a pipeline to carry water to it. 700,000,000 March 19, 2013 2016 Project Iraq Company Name: Ministry of Municipalities & Public Works (Iraq) Address: Opp. King Faisal Square, Karkh Pin: 28488 City: Baghdad Country: Iraq Tel: Fax: Email: info@mmpw.gov.iq Website: http://www.mmpw.gov.iq New Tender March 19, 2013 Water Works This project is in Iraq. Scope of work also involves rehabilitation and repairing of all damaged lines and networks; building two large water treatment units, each with a capacity to treat 16,000 m3/ hour; and constructing a desalination station, with capacity to process 10,000 m3/hour. The overall capacity of this project will come to 660,000 m3/day. Japanese water company NGS has completed studies on the project, drafted its designs and prepared bills of quantities for the items and lists of materials needed. NGS will supervise each phase of the project and will train technical and engineering staff from the Basra Water Directorate. Construction work is slated to commence in the second half of 2013. The scheme will be completely finished and operational by end of 2016. Once complete, it will meet about 80% of the Basra populationâ&#x20AC;&#x2122;s need for drinking water and provide a real solution to the problem of water salinity. Seawater Treatment Plant Project-1 Engineering, procurement and construction (EPC) contract to build a seawater treat-
POWER & WATER MIDDLE EAST / JUNE 2013
Budget ($) Posting Date Period Tender Type Territory Client
Consultants
Status Last Updated Tender Categories Remarks
Project Name Description Budget ($) Posting Date
ment plant, intended to process 2.5 million barrels a day (b/d) of treated seawater, with expansion up to 12 million b/d. 12,000,000,000 June 29, 2011 2015 Project Iraq Company Name: Ministry of Oil (Iraq) Address: Oil Complex Bldg., Port Saeed Street Pin: 6178 City: Baghdad Country: Iraq Tel: (+964-1) 727 0710 Fax: Email: i.t@oil.gov.iq Website: http://www.oilministry@oil.gov.iq Main Consultant Company Name: Fluor Corporation (USA) Main Consultant-2 Company Name: Mott MacDonald (UK) Project Manager Company Name: CH2M Hill International (USA) New Tender March 7, 2013 Water Works Sewerage & Drainage This project is in Iraq. Client has split the work into several areas, including a 120-kilometre pipeline and the water treatment plant. This will include seawater inlets, pumping stations and treatment facilities. An environment impact assessment package will cover the entire scheme. Client had invited firms in May 2011 to bid for field surveys and front-end engineering and design (FEED) and pre-FEED work. Tender clarification meetings are currently being held with international engineering firms bidding for the design work. It is understood that the client is expected to release a tender in April 2013 for the front-end engineering and design (FEED) service on this scheme. Inner Doha Re-sewerage Implementation Strategy Project Execution of Inner Doha Re-sewerage Implementation Strategy (IDRIS). 5,500,000,000 January 21, 2013
TENDERS & CONTRACT
Period Tender Type Territory Client
Consultants
Status Last Updated Tender Categories Remarks
2018 Project Qatar Company Name: Public Works Authority ASHGHAL (Qatar) Address: Al Faisal Tower, Al Corniche Street, Dafna Pin: 22188 City: Doha Country: Qatar Tel: (+974) 4495 0000 Fax: (+974) 4495 0999 Email: info@ashghal.gov.qa Website: http://www.ashghal.gov.qa Project Manager Company Name: Hill International Middle East Ltd. (Qatar) New Tender March 18, 2013 Sewerage & Drainage Tender No. IA12/13C727MRPSC This project is in Qatar. It involves building a series of deep tunnels that will serve the Doha South catchment area over the next (50) years and will eliminate the need for pumping stations in the area. It also include 76-kilometres of lateral interceptor sewers, 33-kilometre of trunk sewer, a terminal pump station, a New Doha South sewerage treatment plant, 92-kilometre of treated sewage effluent return facilities and the de-commissioning of (37) existing pump stations. Client is planning to split the project into six packages; some of them will be split further into individual contracts. Six main packages include: Package 1: Three design and build contracts for the lateral interceptor sewers Package 2: Three design and build contracts for the main trunk sewer Package 3: One design, build, operate contract for the terminal pump station Package 4: One design, build, operate contract for the New Doha South sewage treatment plant Package 5: Three design and build contracts for the treated sewerage effluent return systems Package 6: Two contracts for the decommissioning of pumping stations. Tendering for the first contracts is expected to be launched in this year, with construction work is expected to commence in mid-
2014. Project completion is expected by the end of 2018. Client has invited local and international contractor and consultants to attend a briefing on this scheme on January 23, 2013. US’ CH2M Hill has been appointed as the project management consultant (PMC) on this scheme. It has worked on the concept design and preliminary design and will also manage the design and construction consultants. Client wishes to select a short-list of competent companies (“Pre-qualified Applicants”), for invitation to tender for various packages on this scheme. It is seeking proposals from applicants to demonstrate their capability to perform significant components of the work with the right vision and necessary experience, capabilities, understanding and commitment to work with client to achieve outstanding results in the delivery of the programme. The existing sewerage system in Doha’s oldest South Catchments consist of shallow sewers and numerous pump stations and the current assets are unable to meet the growing sewerage system demand. Scope of the IDRIS programme consist of construction of tunnelled sewers to replace the shallow sewers and numerous existing pump stations, in order to meet the longterm needs of this growing area. Part of the scheme entails replacing the existing Doha South STW with a new treatment facility located further south. More specifically the infrastructure to be constructed involves the following: - The conveyance system with approximately 73-kilometres of lateral interceptor sewers and approximately 40-kilometre of deep trunk sewer - The terminal pump station TPS with a future peak pumping capacity of approximately 12 m3/s - New Doha South STW with an initial capacity of 500,000 m3/day - A TSE pump station, with return mains and potentially several terminal TSE storage reservoirs.
POWER & WATER MIDDLE EAST / JUNE 2013
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TENDERS & CONTRACT
(TPS), New Doha South Sewage Treatment works (STW) and treated sewage effluent (TSE) return facilities. Contract shall be let on a Design/Build basis, except for the Sewage Treatment Works (STW) component where contractors will also be required to provide operations and maintenance services. The closing date for submission of the prequalification application in accordance with the requirement set out in the instructions to applicants, shall not be later than April 29, 2013 at 1:00 pm. Three hard copies (Original and two copies) and a soft copy on a Compact Disk (CD) must be included as part of the submission. Applications must be in the format as specified in the prequalification documents and should be submitted to: Contracts Department Manager, Public Works Authority (Ashghal) Al-Faisal Tower 1, Ground Floor, West Bay, PO 22188, Doha, Qatar. Project Name Description Closing Date Posting Date Period Tender Type Territory Client
Status Last Updated Tender Categories Remarks
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Jizan Sewage Treatment Plant Construction Project Construction of a sewage treatment plant in Jizan. April 8, 2013 March 5, 2013 2015 Project Saudi Arabia Company Name: Ministry of Water & Electricity (Saudi Arabia) Address: King Fahd Road, Saudi Mall Centre Pin: 5729 City: Riyadh 11233 Country: Saudi Arabia Tel: (+966-1) 404 0180/ 205 2981/203 8888 Fax: (+966-1) 205 0557/205 2962/2748 Email: info@mowe.gov.ae Website: http://www.mowe.gov.sa New Tender March 5, 2013 Sewerage & Drainage This project is in Saudi Arabia. The purpose of the project is to meet the growing populationâ&#x20AC;&#x2122;s needs in the area. Invitation to bid (ITB) has been issued for the construction contract on this scheme. Construction
POWER & WATER MIDDLE EAST / JUNE 2013
contract is expected to be awarded in the third quarter of 2013. Project completion is anticipated in 2015. Project Number Project Name Territory Client Description
Budget USDl Period Status Remarks
Tender Categories Tender Products
Project Number Project Name Territory Client
OPR574-Q Solar Energy Power Project Qatar Name: Qatar General Electricity & Water Corporation (Kahramaa) Address: Corniche Street, Number 61, Sheraton Roundabout, Dafna Area City: Doha Postal/Zip Code: 41 Country: Qatar Tel: (+974) 4484 5484/ 4484 5555 Fax: (+974) 4484 5496 E-Mail: contactus@km.com.qa Website: http://www.km.com.qa Engineering, procurement and construction (EPC) contract for the implementation of a solar energy power scheme with capacity of 200 MW. 30,000,000 2020 New Tender This project is in Qatar and would be implemented in two phases. The first phase includes implementation of 5 MW to 10 MW pilot projects costing about USDl30 million. The second phase will include review and study of the business model based on the results of first phase projects to consider the possibility of involvement of the private sector investment that will provide mutual benefit to the client and private sector. It is understood that the plant will be built at North of Doha. Invitation to bid (ITB) for the main contract is expected to be issued this year. Power & Alternative Energy Water Works Solar Energy MPP2730-Q Ras Laffan Seawater Reverse Osmosis (RO) Plant Project Qatar Name: Qatar General Electricity & Water Corporation (Kahramaa) Address: Corniche Street, Number 61, Sheraton Roundabout, Dafna Area City: Doha Postal/Zip Code: 41
EVENTS
June 17 2013, LONDON
Iraq Power
Organised by The CWC Group, producers of Iraq Petroleum, Iraq Power, will take place in June at the Intercontinental Park Lane, London. Iraq Power will be the first Conference to address Iraq’s plans to develop a modern power infrastructure and create a sustainable supply of electricity. Gathering the Iraqi Ministry of Electricity, senior members of the Energy Committee, project leaders and investors, this unique Conference will discuss future opportunities in the Iraqi electricity sector, with focus on gas to power and the utilisation of natural gas as the fuel choice of the future. Iraq has allocated USD112 billion, equating to 45% of its annual budget, to the development of the country’s electricity sector and scheduled USD250-USD275 billion for spending on power infrastructure over the next five years, in a bid to meet domestic power demand. Contact: Stefanie Grime, CWC Group Limited Tel: +44 20 7978 0000 | Fax: +44 20 7978 0099 E-mail: sgrime@thecwcgroup.com | URL: www.cwciraqpower.com
September Arabian Water & Power Forum 23-25, 2013, Dubai
The Arabian Water & Power Forum, under the patronage of H.H. Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum and in partnership with the Dubai Supreme Council of Energy, will take place 23-25 September 2013 at The Address Dubai Marina, UAE. The event will explore the balance between ‘Optimising Supply and Managing Demand’ with a renewed focus on innovative technologies and projects across the Middle East. It will bring together central policy makers, government figures and international investors to determine the next steps essential to matching water and power supply with demand across the Middle East. Innovations in sustainability will be at the core of discussions and companies excelling in this area will be recognised at the prestigious AWPF Awards Ceremony held on Day One of the Forum.
Desalination industry stalwarts at AWPF Contact: Kyle Wetselaar, CWC Group Limited Tel: +44 20 7978 0336 | Fax: +44 20 7978 0099 E-mail: kwetselaar@thecwcgroup.com | URL: www.cwcawpf.com
November ADIPEC 10-13, 2013 Abu Dhabi ADIPEC - the Abu Dhabi International Petroleum Exhibition and Conference - is the largest gas and oil event in the Middle East. Supported by Abu Dhabi National Oil Company (ADNOC) and the UAE’s Ministry of Energy, it hosts more than 1,600 exhibitors and attracts more than 50,000 attendees This year’s re-worked ADIPEC Awards – Excellence in Energy 2013 aims to recognise excellence in individual projects and departments of gas and oil companies in the Middle East and North Africa region; and to support development of a stronger, even more successful gas and oil business community throughout the region. ADIPEC’s technical gas and oil conference will take place alongside the exhibition at the Abu Dhabi National Exhibition Centre (ADNEC).
Contact: Mike Hughes, Marketing Manager Tel: +971 2 406 4477 E-mail: mikehughes@dmgeventsme.com | URL: www.adipec.com ADIPEC TROPHY POWER & WATER MIDDLE EAST / JUNE 2013
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FLIPSIDE
Quest for Arctic passage
Irish quest for a world first Arctic Passage highlights disastrous impact of global warming and renewable energy’s mitigating role
G
lobal wind and solar company, Mainstream Renewable Power is sponsoring a rowing expedition attempting a world first through the infamous Northwest Passage in the Canadian Arctic this summer. Three experienced Irish adventurers and one Canadian are attempting to become the first ever people to cross the 3,000 km passage by human power alone in a single season – a feat which is only possible due to the melting ice which normally renders it impassable. The Northwest Passage is a route through the various islands of the Canadian archipelago which over the years has witnessed some incredible tales of courage, disaster and hardship. Irishmen Paul Gleeson, Denis Barnett and Kevin Vallely along with Canadian Frank Wolf will set off from Inuvik in the North West Territories on the first of July in their 25ft long customised rowing boat ‘The Arctic Joule.’ The four men will row in continuous shifts 24 hours a day, seven days a week as the route will be in constant daylight for the majority of the journey which is expected to take two to three months, ending at Pond Inlet in Nunavut. Eddie O’Connor, Chief Executive of Mainstream Renewable Power said: “Mainstream is proud to sponsor this
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POWER & WATER MIDDLE EAST / JUNE 2013
expedition because it draws attention to the disasters of global warming. The expedition can only happen because the polar ice caps are melting at an alarming rate. The melting of the permafrost and the release of methane hydrate is perhaps the biggest single calamity that mankind faces and it’s all down to human-induced global warming. This expedition allows us to demonstrate to the world that there is an answer to global warming. We don’t have to do without electricity. We can have our electricity supplied by renewable sources. “Just last month, World Bank President
Jim Yong Kim said that if we have any hope of keeping climate change below two degrees Celsius, the peak year of carbon emission has to be 2016. I hope this expedition will show world leaders that we need to act now.” It wasn’t long ago that the Northwest Passage was the sole domain of steelhulled ice-breakers. The challengers hope by making this traverse completely under human power in a row boat, without sail or motor, in a single season they will be able to demonstrate first-hand the profound affects climate change is having on the world.
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