Energy and ecology Magazine

17 February 20 issue 1

ENERGY 2017: What's Next for Solar in Europe?

ECOLOGY Top 10 Carbon Market Trends for 2017 OIL&GAS Interesting state of affairs in the global oil and gas industry MINING Global mining intelligence

ON FOCUS

Neil Reynolds: The man who means business in the Middle East

contents

ENERGY 4 | 2016: a good year for renewable energy projects 7 | 2017: What's Next for Solar in Europe?

9 | QOS Energy, renewable energy management platform, raises €3 million 10 | ISCAR Drilling for Profit with SUMO3CHAM 11 | Turkey: Dynamic energy market offers plentiful power opportunities

ECOLOGY 15 | 2016 in review: UN climate talks deliver mixed progress 16 | Top 10 Carbon Market Trends for 2017 18 | Real-time energy data open to all 19 | Inside NVP Energy's plan to clean up the wastewater treatment industry 20 | Industrial strategy: Are environmental firms at risk of missing out?

14 | Investing in Africa's Renewable Energy Sector

OIL&GAS 22 | Interesting state of affairs in global oil and gas 24 | Securing Big Data 25 | Flue gas analysis – brilliantly easy: testo 350 – the first flue gas analyzer that thinks ahead 27 | PDO - Khulud Tight Gas Development Project (KLD)

MINING 29 | 60 years of “Minproekt” JSC 32 | Inspirational Women in Mining 2016 39 | Global mining intelligence 40 | Marble and natural stone mining in Turkey 42 | SmartRoc T45 drilling at height in Italy

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Neil Reynolds Senior Vice President, Managing Director, MENA and India at CH2M HILL

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Atanas Tanchev, CEO, FILKAB AD

energyandecology.com

Issue 1 February 2017

Energy

2016: a good year for renewable energy projects This year was a great time for renewable energy projects, with landmark projects in CCS and tidal, among many other areas. Rod James takes a look back at some of the best.

This year was a great time for renewable energy projects, with landmark projects in CCS and tidal, among many other areas.

The Hornsea wind projects one and two While the negative rhetoric around wind energy continues, in many British newspapers and increasingly from the government itself, a renewables revolution continues to quietly take place.

February saw the announcement of the Hornsea One project, a £3bn offshore windfarm that will provide enough energy for one million homes, to be located in the North Sea off the coast of Yorkshire.

Covering an area of 160 miles, it will consist of up to 240 190m-tall turbines and will produce around 1.2GW per year of electricity. The turbines are being built by Germany’s Siemens, the generators by Danish power utility Dong, with Dong the sole owner of the project. Set to start up in 2020, Hornsea One is expected to create 2,000 jobs during the construction phase and an additional 300 thereafter.

In August, planning permission was granted for Hornsea 2, which will be adjacent to its antecedent and even grander in scale. It is set to have planned capacity of 1.8GW. The Petra Nova CCS system, Texas The Petra Nova carbon capture and storage (CCS) system, currently being built at the WA Parish Generating Station near Houston, Texas, will be the largest post-combustion CCS system installed on an existing power plant in the world when it comes online at the end of this year.

A 240MW slipstream of exhaust flue gas will flow into the carbon capture system, filtering out 90% of CO2 as well as particulates, sulphur oxides and nitrogen oxides.

The captured waste will then be pumped 82 miles to the West Ranch oilfield where it will be used for enhanced oil recovery, injected into depleted wells to help free up hard-to-reach pockets of crude oil.

The $1bn project is being run by a 50-50 joint venture of Houston-based NRG Energy and Japan’s JX Nippon Oil & Gas Exploration Corp. The two parties put in $300m each, with NRG receiving an additional $167m from the US Department of Energy’s Clean Coal Power Initiative 4

and another $23m from the Consolidated Appropriations Act. Japan Bank for International Cooperation and Mizuho Bank offered an additional $250m in loans.

The Noor solar project, Morocco Morocco has aggressively developed its renewables capacity in recent years and has moved up a gear with the announcement of the Noor project, a network of four linked concentrated solar power (CSP) projects set to provide 510MW of capacity once they all come online in 2018. To give an idea of the size of this project, the first phase of Noor 1 consists of 500,000 solar mirrors in 800 rows.

The project is being run by MASEN, the Moroccan state solar agency, in consortium with Saudi Arabia’s ACWA Power, US firm Aries and Spain’s TSK. Morocco is the biggest importer of energy in the MENA region, bringing in 90% of its fuel in 2013. Due to its ambitious investments in solar and wind, by 2020, 42% of its electricity will come from renewable sources.

submerged in the project’s first phase. If the test goes well, the plan is to deploy up to 269 more over the next ten years with the aim of producing 398MW of electricity, enough to power 175,000 homes.

The first turbine was built by Atlantis, a tidal power company based in Edinburgh, the three others coming from Andritz Hydro Hammerfest, whose UK base is in Glasgow. The fact that the first turbine was constructed at a former oil and gas fabrication yard is an additional reason to be pleased about this breakthrough and the smoothness of transition between old technologies and new.

Waste sugarcane to biogas, Australia To round things off is a small but innovative project underway in Australia, the thirdlargest exporter of raw sugar. The industry already creates renewable electricity from bagasse – the waste left over after sugarcane processing – but researchers at Queensland University of Technology believe there are more ways of making something positive out of this waste.

If successful, it could lead to significantly reduced fossil fuel consumption across the September saw the unveiling of the first country’s sugar refining and transportation turbine of the MeyGen project, which is set industry. to be the world’s first tidal energy farm. The According to project Ian O’Hara, it could turbine, 15m in height with 16m-diameter reduce greenhouse gas emissions by up blades, is now being transported up to the to 80kg of CO2 per tonne of sugarcane Inner Sound in Pentland Firth on produced.

Scotland’s north coast, where the final foundation has just been laid on the seabed. This is the first of four turbines, each with a capacity of 1.5MW, set to be MeyGen tidal stream project

energyandecology.com

Issue 1 February 2017

Energy

Neil Reynolds: The man who means business in the Middle East Regional boss of engineering consulting firm describes the opportunities in this market Having worked on projects in over 90 countries across the world over his career, Neil Reynolds is a man who means business.

A chartered civil engineer by trade, Reynolds has worked his way up from site engineer to his current role as senior vice president and managing director of CH2M in the MENA region.Over the years, he has spent a good Neil Reynolds Senior Vice President, deal of his career in Managing Director, MENA and India at CH2M HILL Africa, Europe, Asia Pacific and the Middle East, and has a wide range of technical and sectoral expertise which includes areas like transportation, tunnelling, water resources and ecosystem management, as well as project and programme management.

combining that with our local knowledge and capability to get the best client solutions.”

“We’re very client-centric in everything we do. We don’t take positions where we tell clients what they need; rather, we listen to what they have to say and then work with them towards solutions together. Some clients obviously want that one-stop shop and we can pretty much offer them a range of services either singularly or combined all together. ”With a wealth of experience under his belt, Reynolds knows opportunity when he sees it, and it’s this trait that has enabled him to identify a number of potential growth areas for the construction industry in the Middle East. For instance, one key trend he sees across a number of countries here and in India is manufacturing and industry.

Depending on the country, he says the strategy goes from precision manufacturing in places like the UAE to more general manufacturing in Saudi Arabia. This cuts across sectors like pharmaceutical, metals, life sciences and automotive.

In fact, he believes that even big data has huge business potential, as a lot of data collection on how to manage infrastructure is taking place.

Naturally, with any kind of manufacturing base comes the need for transport hubs as well, which brings opportunities for the To top it all off, Reynolds is able to provide a diverse outlook on development of airports, ports and rail. every project, based on the fact that he has not only worked as a consultant but has been on the contracting and engineering side Illustrating the point further, Reynolds says, “Rail may have slowed down in the Middle East because of the cost of capital, too. but other trends could emerge from it, like PPP. In the Middle Middle East Consultant caught up with Reynolds to talk about his East, private finance was only ever big in the areas of electricity journey and the direction he is moving CH2M MENA towards. and water, but now it’s moving to other areas like rail and that’s a “I think my experience with so many different cultures has trend that can pick up too.” shaped me as a person. When I moved down to the Middle East, “In terms of the countries that are accelerating these plans in, it was pretty easy for me to merge with the environment here and that we find attractive because of the services that we because it is so multicultural. I’ve been at CH2M for about eight provide, are Saudi Arabia, the UAE and even Kuwait. In fact, years and in this part of the world with them for about four years Kuwait has always set its budget around the $50 oil per barrel now. mark so it has amassed funds where they can spend on “Prior to my current role, I was based in London and headed developing infrastructure.“I think Kuwait will also take advantage CH2M’s global water business outside North America. It was at of the fact that there is a slowdown in the region. the point when we acquired Halcrow that I was asked to come to This means increased competition among players who will vie the Middle East and integrate them and another acquisition – with each other to provide services for them, so I think the VECO, an oil & gas company based in Abu Dhabi – into our Kuwaitis are definitely going to jump on that bandwagon.” business.

He even sees great prospects in India, which falls under CH2M’s This integration into one brand and culture took place over one remit. For one, PM Modi’s ‘Make in India’ initiative, a national and half years, and now we’re a 2,000-member team.”Today, programme designed to facilitate investment, encourages CH2M is not just a 70-year-old firm founded by three Oregon manufacturing in the country. state college graduates and their civil engineering professor. It is a global company with over 5,000 clients, $5.4 billion in revenues The initiative spreads across areas such as automobile, aviation, IT and Business Process Manufacturing (BPM) and thermal in 2015 and nearly $2.8 million in total assets. power, and naturally presents the opportunity to set up these Its Middle East unit, for one has moved from strength to strength, industrial units. There are also a lot of mega-trends around smart enabling them to work on a number of unique projects like cities and the need for synergistic transport hubs too.

Masdar, the STEP sewer tunnel in Abu Dhabi and more lately Expo 2020 and the 2022 World Cup.Given the progress they’ve 3D visioning is another area of technology that interests CH2M, made under Reynolds’ leadership, what is the philosophy that given the amount of opportunity that comes along with it.

Reynolds believes that it will be especially helpful in the has propelled its growth? construction of industrial facilities, where there are often clashes “It’s quite simple,” he says. “Our philosophy as a company is given the need for access requirements. basically bringing in the best of what we have globally and 5

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Issue 1 February 2017

Energy

“In Dubai there is a 3D printing facility, and in Singapore there is a virtual facility where you can walk into a room and see what you’re going to end up with as a finished product. On a smaller scale, we’ve done something similar with rail where we’ve taken clients into virtual rooms that are essentially a walk-through of a project. I think that at the rate technology is developing, ultimately one day, with the exception of ground conditions, you may very well be able to go onto the internet and order a multi-storey building.”In terms of interesting developments, Reynolds says that at any moment CH2M is working on around 600 projects.

Talking about a couple of them in detail, he says it’s working on the Dubai Canal, which he believes is going to create immense value for the city in terms of being not only an attractive public space but also boosting the value of real estate around it.

normal and work around it.

He explains that governments will need to transform and adjust their fiscal policies to cut spending, and while this will have an impact on infrastructure in some cases, it isn’t a point to be alarmed over.“Governments are now looking to raise taxes and are looking to increase borrowing, which again creates opportunities because the bond market or alternative finance is back on the table. As a company, we advise clients in terms of alternative finance, so that’s another aspect that could be a growing business for us. Basically, I know if one hand is down the other hand is up, and I don’t think we all need to panic about the situation. I think it just creates new opportunities for companies like us to continue to prosper in the region.”

Given global events like these and other factors, demand and The Riyadh Metro is another interesting development for CH2M, expectations from clients are evolving as well and consultants but the two projects that really stand out for the company are have to adapt in response.

Expo 2020 and the 2022 World Cup in Qatar.

One challenge consultants are facing while doing this is finding These two mega events require large-scale infrastructure the right talent, says Reynolds. As a company, he says CH2M is delivery and programme management, both core strengths of focused not only on the talent that they hire but where this talent is CH2M. going to help them stay competitive.

“Given our role as delivery partners, we can actually bring our He says, “Companies like ours need to be continuously upgrade best people onto these projects. In both cases, you could our services to stay on top. We always look to see how we can consider us the trusted advisor of the client. What I particularly enhance our project and programme management skills to stay like about these two projects is that because of our past track competitive in the region. With other nations wanting to do record of similar events like the 2012 Olympics in London, we’re business with the Middle East, we hope that clients will continue able to actually tailor our solutions to the client’s needs. to focus on quality as opposed to low cost. This goes back to our client-centric approach.”He reiterates that he sees manufacturing increasing, which is a good thing. Interestingly, with the security threats in the region, there are opportunities for the development of military infrastructure. This could range from “Similarly, the current dynamics in Dubai are also a result of Expo buildings, to heavy civil engineering, to the need for air strips and 2020, where a lot of the infrastructure is supporting this event. In hangars.Civilian airports and ports will also be needed, with the terms of the site itself, the enabling and ground works for Expo growth of tourism and trade. are already underway as well. I think no matter what the oil price “Lastly, picking up on India, the country has always been a focus for the company. I don’t look at it as a contingency to a slowdown is, these two events will happen and have to get completed.” in Sharing his thoughts on the impact of recent geo-political events the Middle East, but as an opportunity in itself. We will continue in the region and the impact of falling oil prices, Reynolds says to focus our efforts on growth in India across airports, ports and chances are black gold may never return to its original levels. security, which is favourable to what we offer as a company.”

“I think we’re fortunate to be involved in events that will literally be drivers of development in Dubai and Doha. If you look at Qatar, all the infrastructure development that we’re seeing today is all a result of the upcoming World Cup.

This means that everyone will need to consider this the new 6

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Issue 1 February 2017

Energy

2017: What's Next for Solar in Europe?

Less gimmicks and more meaningful innovation and collaboration will spell success for European solar, argues First Solar's Stefan Degener The versatility of PV, combined with advancements in technology, offers regulators and legislators a choice of commercial models that can be employed to encourage subsidyfree utility-scale solar, without diminishing the importance of smaller-scale systems.

Apart from the larger-scale power plants that are owned and operated by Independent Power Producers (IPPs), communityowned projects are of growing interest and must remain an area of focus for Europe's renewable energy plans. Cooperativeowned solar projects are common in countries like Germany, which has a long-established track record in this segment, which has the potential to become ubiquitous across Europe. One could argue that dozens, or hundreds, of households investing in a large community-owned project is an effective way of ramping Stefan Degener, Head of Business Development, First Solar for Europe and Africa up solar energy capacity without having to manage the technical, regulatory, and administrative - complexities and costs 2016 was a milestone year for solar energy, with record low tariffs associated with smaller-scale systems. in the Middle East, Africa, and Latin America, helping photovoltaic (PV) solar shrug off the "New Energy" label. Also of importance is the need for Europe to evolve existing Headlines aside, 2016 was the year that solar energy effectively tender procurement systems to meet the eventual requirements began to stand shoulder-to-shoulder with conventional power of a fully interconnected electricity grid. As the region attempts to generation. While the outlook in Europe wasn't quite as optimistic enhance and future-proof its power grid, it will be critical - as as it was in the emerging markets, the region had its own Solar Power Europe pointed out in a 2016 report - for greater achievements to celebrate: it marked 100 gigawatts of grid- convergence in the various tendering mechanisms being used c o n n e c t e d i n s t a l l e d c a p a c i t y, a n u n p r e c e d e n t e d by different countries. Although, the German-Danish crossaccomplishment; the European Commission launched its "Clean border pilot was deemed a success and is seen as a move in the Energy for All Europeans" package, a policy framework for the right direction, it is unrealistic to expect a step change. Europe deployment of renewables until 2030; tender-based would do well to prioritize the process of aligning national procurement mechanisms became more common; Germany renewable energy procurement models in order to create a solid and Demark piloted the region's first cross-border tender; foundation for pan-regional interconnection.

Europe pioneered the creation of a solar Operations and Finally, the success of Europe's energy transition will also Maintenance (O&M) best practices framework that established a depend on embracing the full potential for utility-scale energy global benchmark; and, if the number of exhibitors at Intersolar storage. The fact of the matter is that demand helps lower pricing 2016 was anything to go by, the region's energy storage industry and a reform of policy mechanisms to allow greater cross-border was thriving. flexibility in trading energy could provide the fillip that the industry Importantly, while tariffs in the emerging markets made needs to boost the cost-competitiveness of utility-scale storage headlines, Europe wasn't far behind in terms of the cost- systems. The possibilities are many with the bottom line being competitiveness of solar, as auctions in the Netherlands and that enhancing utility-scale energy storage will help the region Denmark demonstrated last year. In fact, the Netherlands' SDE+ address the challenge of the intermittence of solar energy. technology-neutral auction was notable for the fact that it saw The policy foundation for much of this was created with last utility-scale PV hold its own against other power generation year's launch of the Clean Energy for All framework, which, technologies. among other things, seeks to revamp the design of Europe's As we kick off 2017, the main question is: how do we turn fulfill energy market. Most significantly, the policy package outlines our long-term climate commitments? For starters, it is important plans to remove wholesale price caps, allowing electricity pricing for policymakers and the industry to recognise that the road to a to reflect the real value of supplying energy at a specific time of clean energy future for Europe isn't necessarily paved with solar day or in areas where demand is high. panels. In fact, the region needs to maintain a singular focus on This promise of enabling a demand-based pricing response, procuring cost-competitive solar without being distracted by combined with interconnected grids opens up a wealth of gimmicks. The economics speak for themselves: the larger- opportunities for utility-scale solar, combined with utility-scale scale a solar energy generating system is, the more cost- storage. competitive it is. Just like any industry, solar benefits from the Europe has a very real opportunity to lead the world into a wideeconomies of scale, in any part of the world. ranging energy transition. It must do so, not by joining a race to While 2016 also saw some debate about the future of large-scale the bottom with headline-grabbing tariffs and gimmicks, but by solar in Europe - and it became apparent that the 100 megawatt encouraging true innovation and collaboration, and nurturing (MW) projects are a thing of the past - the industry has largely healthy competition. This combination of innovation, come to accept a reality where large- or utility-scale solar collaboration and competitiveness is what will drive our ambition projects in the region now range from 1MW to 50MW. for a sustainable future.

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Energy

Interview with Atanas Tanchev, CEO, FILKAB AD What kind of suppliers do you have? How do you select the equipment you sell?

Our company has established its reputation by offering quality products from the most reputable European manufacturers in the field of power energy. We maintain long-standing relationships with our suppliers. Our responsibility to customers motivates us to sell the latest products and technologies which are in line with the contemporary trends of high energy efficiency and smart grids development.

Atanas Tanchev, CEO, FILKAB AD

Another characteristic feature of our trade policy is the comprehensive approach to products and services offered. Due to the increasing demands of our customers from the industrial and energy sectors, associated with European standards and policies, we expect our suppliers to be strict not only regarding deliveries but also in providing all the respective documents, certificates, operating instructions, etc. We aim to sell each product together with competent advice on its application, with the necessary technical documentation and with the options for return and service. Furthermore, we organise regularly seminars with our suppliers with different thematic focus and invite our customers to attend them.

What is the contribution of engineering staff to the company FILKAB AD was established in 1999 in Plovdiv, Bulgaria, and is success? What does FILKAB make for their professional currently a market leader, providing goods and services in the development? sphere of electrical installation and equipment.

It is obvious that a company like FILKAB would attract highlyIt offers engineering solutions which are widely applied in the qualified staff. Over 40% of our employees are with university power industry, construction, communications, etc. degree in Engineering. When selecting new staff, we are guided We have 7 warehouses with sales offices in the biggest cities in by the idea that people in high positions should possess the Bulgaria – Plovdiv, Sofia, Veliko Tarnovo, Sliven, Varna, Burgas, relevant education and training from a reputable university, and and Ruse. then the experience gained and results achieved would be of Due to the growth of business, two structural departments of importance as well. In order to be of best use to our customers, we offer continuously various trainings and specialised courses FILKAB were transformed into separate daughter companies. to our employees. All foreign partners of FILKAB also organise The production work (all types of electrical switchboards, similar trainings for our staff so that we would be competent, complete concrete transformer stations, complete distribution confident in the quality of equipment we sell. substations, lighting fixtures, etc.) and project activities related to the energy sector were assigned to Engineering EAD. FILKAB Solar OOD is the other Bulgarian daughter company What about your first professional experience with Filkab? whithin the FILKAB group which offers comprehensive solutions Which are the most interesting projects you have worked in the field of renewable energy: supply of materials and on? equipment for PV and hybrid systems; design, construction, I joined FILKAB AD in 2011 with little professional experience. commissioning, maintenance, 24/7 technical service; project Next year I became Project Manager in the RES Department and management and implementation of utility-scale RES projects; gained considerable experience in the construction of small PV solar pump systems for agriculture; research, analysis, systems. But the biggest challenges for me were the projects for estimation, and optimisation of PV systems. Apart from being “turnkey” utility-scale PV plants which we completed in Bulgaria, present in Bulgaria, FILKAB has 4 subsidiaries in the region: in Romania, Cyprus, Macedonia, and Turkey.

Macedonia, Serbia, Romania, and Turkey.

What are your professional challenges?

What is your companyʼs strategy?

The FILKAB group of companies takes on a new path of development and, in this respect some new changes have been introduced in the senior management, whereas improving the quality of customer service becomes a key priority to the new management. The aim is to maintain the company image of a respected and loyal partner and to increase the market share of our products by expanding our portfolio and strengthening our leading position in the country and the region.

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To me it's an incredible feeling to carry out the stages in a project implementation – from conception to conclusion. I like the feeling of satisfaction which comes after each project of high quality and the idea to leave behind something long-lasting and valuable which could be associated with the name of FILKAB. I think in the difficult economic conditions and highly competitive environment in which we operate, it is quite a challenge to maintain our leading market position in the country and the region. energyandecology.com

Issue 1 February 2017

Energy Tell us about some of FILKABʼs recent projects.

system operating in island mode for a winery estate, with lithiumion batteries and installed peak power of 29,90 kWp.

In the forthcoming months, FILKAB will have the pleasure to invite its partners and customers to the opening of its fullyrenovated trade and warehouse premises in Varna. Soon afterwards, an opening of an own office with commercial, warehouse and production premises will take place in Macedonia – property of the daughter company MAK KAB DOOEL. With this investment FILKAB will become one of the biggest companies in the region for trade and production of goods and services in the field of electrical engineering.

In Turkey we are dealing with project management and construction of utility-scale renewable energy projects. Our Turkish company Filkab Solar Enerji A.Ş. completed the electrical part of two new projects – 5.7 MW each, and is currently working on a 1.8 MW PV plant. The company is also in the process of negotiating two new 8 MW PV projects.

What are your plans for 2017?

All the changes undertaken, the new investments and We entered new markets and registered a subsidiary in Serbia development plans for the group of companies of FILKAB have where we have offices and commercial warehouse. been implemented in order to maintain the companyʼs position of Our daughter company Filkab Solar completed the construction a reliable business partner and its stability on the market, of a PV system for self-consumption with total installed capacity regardless of the competition and the economic situation. of 163,90 kWp for the first in Bulgaria farm for Boer goats (a The image of innovative and hi-tech company is supported by its South African breed). The PV system of the goat farm “Agro potential to foresee the innovations and to implement them Yustina” received the first prize by the Association of Bulgarian through the product portfolio expansion and the provision of Energy Agencies (ABEA) in the “Solar Energy” category of RES high-quality products and services offered by qualified and Champions League for the contribution to the promotion and responsible staff. innovation of solar energy installations.

Filkab Solar also finished a project for a hybrid autonomous PV

QOS Energy renewable energy management platform, raises €3 million and systems.

ABOUT ETF PARTNERS ETF Partners supports talented entrepreneurs and management teams with investment capital and experience. Our funds come from institutional investors, global corporations and family offices.

We create value by investing in technology companies that make a difference. We call it 'sustainability through Innovation'.

For more insight into ETF Partners' view on sustainability through Innovation, read our investor briefings.

Founded in 2010, the independent software vendor has rapidly Environmental Technologies Fund 2 L.P. is supported by the expanded, securing a roster of Europe's, North America's and European Union through the 'Competitiveness and Innovation India's largest renewable energy producers, asset managers Framework Programme' (CIP). and O&M services providers.

These include NEOEN, CONERGY Services and SOLV, who chose QOS Energy for the data intelligence it provides across For more information: www.etfpartners.capital.com their portfolio.

QOS Energy's cloud-based renewable energy management system – Qantum® – collects data from millions of sensors and devices deployed across multiple solar, wind, biogas, hydro, storage and hybrid assets.

The data is transformed into comprehensive analytics enabling professionals as varied as plant managers, analysts, energy traders and maintenance engineers to significantly improve operational processes and financial returns.

ABOUT GO CAPITAL GO CAPITAL is a venture capital company managing over € 120 million and mainly involved in innovative, highly technological companies based in the west of France. The Fund OUEST VENTURES II, which reinvests in the capital of QOS Energy, brings together Bpifrance, the Regions Brittany and Pays de la Loire, banking partners (Crédit Mutuel Arkea, Caisse d'Epargne, Pays de Loire, Banque Populaire de l'Ouest and Atlantique, the Caisses Bretonnes of Crédit Agricole and Crédit Mutuel CIC) and individual investors. GO CAPITAL, through its 8 funds, holds interests in nearly forty companies in the Digital, Greentech and Biotech sectors.

One of QOS Energy's key success factors is its unique ability to provide renewable energy companies with a single platform to access performance analytics, dashboards and KPIs across all their assets. This supports renewable energy companies' global acquisition, growth and diversification strategies by streamlining operations of an increasingly varied set of energy assets, plants For more information: www.gocapital.fr 9

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Issue 1 February 2017

Energy

ISCAR Drilling for Profit with SUMO3CHAM fast, as the feed per tooth can be increased significantly.

Alternatively, users can maintain the same feed per revolution as with a two flute drill and achieve much longer tool life.

The SUMO3CHAM clamping, which relies on 3 points of positioning, provides high levels of repeatability when replacing the drilling head. Three radial and 3 axial stoppers secure the drilling head and ensure a reliable drilling process in high feed machining environments. Furthermore, due to its sharp edges and the low axial force it applies, the SUMO3CHAM is very efficient when drilling a through-hole when the drill breaks through a slanted surface, also creating fewer burrs on the hole exit. Since the material work hardening is low, a reamer or a tap which may be used for a subsequent operation will gain from extended tool life and accomplish improved results.

The unique geometry of the SUMO3CHAM self-centering head shapes the produced chips optimally to allow smooth evacuation throughout the 3 high helix polished flutes.

ISCAR maintains its proud tradition of designing user-friendly drilling systems for easy handling. These unique drilling systems eliminate the use of tightening screws to clamp the drilling head in accordance with the company motto "No Set-up Time".

SUMO3CHAM is now available for machining alloy steel, carbon steel, soft and gummy low carbon steel as well as cast iron.

The global metalworking industry is driven by the relentless progress of high-end technologies that are becoming ever more sophisticated. The challenging requirements of advanced production equipment demands the provision of 'out of the box' advanced machining solutions. Innovative cutting tools release the latent productive capability of modern machine tools and deliver enhanced profits to users.

ISCAR's vision is to remain the global metalworking market leader by the continuing work of its prolific R&D department and remaining aware of its customers evolving needs. Innovative developments allow the launch of products that bring manufacturers an array of efficient drilling solutions based on uncompromising quality.

In order to comply with market demand, ISCAR recently exhibited its next generation, advanced indexable drill and further extended its comprehensive product portfolio with the ISCAR Bulgaria is located in launch of SUMO3CHAM – an advanced three flute indexable Kazanlak to serve the Bulgarian drill. metal working industries. ISCAR Bulgaria is registered with the The innovative design of the SUMO3CHAM raises users Bulgarian Chamber of Commerce and Industry and abides by its manufacturing productivity to new levels by reducing machining standards of conduct. The trained staff of experienced sales cycle times by up to 50% when compared to the conventional two engineers at ISCAR Bulgaria is ready to provide support, testing, demonstrations, consultations and quotations for ISCAR tools — flute drills. the world’s finest metal cutting tools.

The new product's pocket configuration is constructed on a 'close structure' design with three contact areas based on a dove tail joint. This rigid clamping configuration divides the forces applied to the tools' pocket into 3 segments. This arrangement dramatically reduces harmful influences on the pocket's life and also substantially prolongs tool life.

In a similar way, the cutting forces are equally divided across the 3 cutting edges of the drilling head. The application of less pressure to each of the contact surfaces further extends the life cycle of the drilling head.

ISCAR is the largest of the 15 companies comprising the IMC (International Metalworking Companies). Together, they supply a dynamic comprehensive line of precision carbide metalworking tools. These companies produce a wide range of carbide inserts, carbide endmills and cutting tools, covering most metal cutting applications. IMC also provides engineering and manufacturing solutions to major industries throughout the world. Many innovative products, designed specially for customer requirements, have made the IMC a world leader in the major manufacturing industries such as automotive, aerospace and die & mold production.

"The combination of the self-centering geometry, along with a robust and accurate clamping system results in SUMO3CHAM providing ultimate performances relating to hole cylindricity, For more information: ISCAR Bulgaria. Starozagorska 1, Str. Floor 1, Office G, 6100 roundness and enhanced productivity.

Kazanlak The entire machining process becomes much easier as the cutting forces are spread across 3 cutting edges, the drilling Tel/Fax:+359 431 62557; Tel: +359 431 64361 process is more stable and the penetration into the part's e-mail: apostolov@iscar.bg material is more balanced. Thus, users can work up to twice as www.iscar.bg 10

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Energy

Turkey: Dynamic energy market offers plentiful power opportunities it has established a very strong presence in the gas turbine market - "More than half of the gas fired power plants in terms of MW, and also in terms of the number of units, are GE technology," says Maltepe.

Istanbul is now the headquarters for all of Eastern Europe for GE Power Services, which supports gas turbines, steam turbines and renewable technology.

Elbistan lignite power station

It is also strong in the wind sector and following the acquisition of the Alstom business, it has a presence "in coal projects with steam turbines as well as some hydro business".Maltepe says: "In the coal area, the government is supporting particularly indigenous coal. One of the priorities of the government is to reduce imports of energy products to improve the trade balance of the country, so gas but also imported coal is an issue."

Economic expansion, rising per capita income, positive But he stresses that "gas is not dead at all. We have over 1600 demographic trends and the rapid pace of urbanization have MW currently being constructed in gas." propelled energy demand in Turkey to an all-time high.

He says gas makes sense for Turkey because "with more and The country's energy demand is estimated to increase by around more renewables in the market, you are seeing more and more 4 per cent a year until 2023, with the current 70 GW of installed variability, and gas power plants are very good at fast ramping up capacity expected to hit 100 GW by that time. and down to support that."

This energy boom is attracting power players from around the However, he says that "we are definitely seeing more and more world to the Turkish market. With a European market that has interest from investors and developers in renewables, primarily stalled for many equipment suppliers, what makes Turkey wind". attractive, says Dr Matthias Jochem, chief sales officer at "Turkey last year was the number 10 wind market in the world Mitsubishi Hitachi Power Systems Europe, is that "something is with about 1 GW of installations, so even in those technologies happening in the first place". that were once considered a luxury and we only saw in places He says that Turkey's steady economic growth "has translated like North America and Europe, we are seeing significant into power consumption" and in turn energy companies can investment and growth." "smell business".

Maltepe says that five years ago Turkey was ripe for new After years of relying on gas from countries such as Russia and business because the government "was worried about an energy Azerbaijan for its power, Turkey has taken steps to wean itself of crisis because of not having enough supply". this dependence and this has translated into a new drive for "Now you have a much more established, liberal market in lignite plants and renewables.

Turkey. At the same time, significant capacity has been added The government has also changed its strategy over the and some of the electricity pricing has come down, so the ownership of power assets, selling off many previously state- economics are not as attractive as they were five years ago. But owned plants to private investors. the fundamentals are there: the economy is growing, the population is growing, electricity demand is growing and the kWh This has resulted in a lot of what Jochem calls "newcomers" - not newcomers to Turkey, but newcomers to the power sector who per person in Turkey is still very low compared to the average in were already established in Turkey in another area of industry. Europe."

Some are family holding companies actively seeking sound Claudio Spadacini, chief executive and founder of Italian investments. company Exergy, agrees that "Turkey has become one of the fastest growing and most attractive energy markets".

This, he adds, has brought its own opportunities and challenges: "These companies have a certain perspective for their plants - He attributes this to the privatization of power assets, which he they want to keep the plants in order but they are not experienced adds "the government has been able to support with reforms that in dealing with these assets - how a tender is conducted and the have created a highly competitive and dynamic market". quality of, say, Chinese equipment over European equipment.

Exergy has been active in Turkey since 2011 when it participated Sometimes we have to face unusual requests or deadlines." in the consortium for the Pamukรถren 1 and Pamukรถren 2 On the subject of Chinese imports, he says "there is a much geothermal plants. Since then it has established a 100 per cent greater influx in Turkey than any other European country". wholly-owned Turkish subsidiary.

Nonetheless, he stresses that Turkey "is a new game - it's a good "This was a winning choice and gave us an additional market for us. Turkey is dynamic." competitiveness deriving from offering a Made-in-Turkey Mete Maltepe, general manager of GE Power in Turkey, says production," says Spadacini. that Turkey "is in our top 10 or 12 countries in the world for power.

It's a significant country for us."

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Energy Exergy is also the first supplier of organic rankine cycle (ORC) solutions for power generation from geothermal sources in Turkey.

Marianna Caputo, marketing manager at Italian cooling technology company SPIG, believes that Turkey is "one of the most attractive and favourable investment environments in the world".

She says that the government's massive programme of restructuring and liberalization has created a "strategicallylocated huge energy market that has become more competitive, offering several opportunities".

She adds that Turkey plays "a significant role in the global economy and world trade, standing out as a promising emerging market alongside the so called BRIC club countries."

However, she observes that "this status needs important steps still to be taken such as to accelerate its innovation and R&D capabilities aimed at transforming the country into a centre of excellence. To sustain its economic growth in the long term, the Gisbert agrees that Turkey offers investors favourable incentives, such as feed-in tariffs, purchase guarantees, country needs to boost its structural transformation.“ connection priorities and license exemptions. However, he Turkey's vision for 2023 includes: observes that the "return-on-investment period in Turkey's - Raising the total installed power capacity over 100 GW energy market is little longer than in other investment areas such as construction - so local and foreign investors may - Increasing the share of renewables to 30 per cent evaluate alternative countries." He believes Turkey's - Maximizing the use of hydropower government "should fortify its promising energy policy to - Increasing installed capacity based on wind power to 20 GW encourage foreign investors". (an additional 15 GW) Yücel Hurkal, general manager at Wärtsilä Energy Solutions in - Installing power plants that will provide 600 MW of geothermal Turkey, says that the country's "transition to a free market has and 5 GW of solar energy been an obvious necessity"."The Turkish power market was - Significantly enlarging the transmission capacity of the high driven by governmental companies, therefore it was controlled as monopoly for a long time. As a fast-growing market, it became voltage grid evident that the ever-increasing demand for electricity could not - Reaching a power distribution unit capacity of 158,460 MVA be met solely by public resources and the additional resources needed to meet this demand required extensive investments."

- Extending the use of smart grids Wärtsilä has been active in Turkey since 1994 and reached 4 GW in established capacity by the end of 2015. Its most significant - Establishing an energy stock exchange growth came between 2000 and 2010 due to the liberalization - Commissioning nuclear power plants (two operational with a and privatization of the market. third under construction) Hurkal says the liberalization "constantly increases the - Increasing coal-fired installed capacity from the current 14.5 competitiveness of the market, while privatizations offer a variety GW to 30 GW of investment opportunities which also serve the purpose of The SPIG Group started operating in Turkey in the 1990s and in increasing competitivity".

2004 set up a local subsidiary. Since then, Caputo says "we saw So where is the uptapped power potential in Turkey? an overall progress in the emerging market and a significant expansion in the power generation sector, driven by a steady Exergy's Spadacini says it is undoubtedly in renewables: "If we consider the renewable potential in Turkey - wind, solar, growth in the country. geothermal and hydro - the country is exploiting only 20-30 per "Turkey has attracted a large number of foreign investors who cent of it. This number is expected to increase, as the Turkish brought their know-how, innovative products and experience, government has made it a priority to bring the share of helping to fuel the country's development." renewables in the country's energy mix up to 30 per cent by Peter Gisbert, vice-president of sales for Eastern Europe with 2023, and Spadacini says one of the most interesting renewable Siemens' Power and Gas Division, maintains that Turkey's energy potential areas is geothermal. biggest energy asset is quite simply its location: "Turkey's "The total geothermal theoretical electricity potential of Turkey is geopolitical position in the middle of three continents is a great 2500 MW. The total electricity production from geothermal at the opportunity to build new energy corridors. Turkey is end of 2015 was approximately 600 MW, so there's still a huge geographically located in close proximity to over 70 per cent of market to seize. the world's proven gas and over 70 per cent of oil reserves, in That's why the Turkish market is where almost all the geothermal particular those in the Middle East and the Caspian Basin. technology suppliers currently are investing for binary plants.

"It thus forms a natural energy bridge between the source However, he adds that "as important as renewables are for countries and consumer markets and stands as a key country in Turkey's energy strategy in the coming years, technologies in ensuring energy security through diversification of supply such fields as waste processing and greenhouse gas reduction sources and routes, considerations that have gained increased are also often cited together with this new form of power significance in Europe today.“ generation as critically important supplementary practices".

- Raising the natural gas storage capacity to 5 billion m3

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Energy „Sustaining the environment by resorting to renewable resources is accompanied by a number of measures and regulations that are either currently in effect or will soon be in effect, including lowering carbon emissions, increasing generation/transmission efficiency and promoting the use of waste management technologies."

He adds that "privatizations will have a hidden capacity increase effect." He explains that the increased share of private entities in the electricity generation sector - from 32 per cent in 2002 to 75 per cent in 2015 - has had a positive effect. "Privatized power plants perform significantly better after takeover. After rehabilitation and replacement periods, the overall capacity factor is expected to increase from 45 per cent to 80 per cent."

structured comprehensive incentives for wind, hydro and local coal. Structuring a solar policy with special solar-related incentives may ramp up the solar market. Today's annual solar investment is 50 MW but with a structured policy there is a 500 MW-a-year market for the coming years."

He also sees Turkey as an important market for new opportunities in onshore wind power. "According to estimations of the German Foreign Trade and Inward Investment Agency, potential for the utilization of wind power in Turkey is up to 30 per cent higher compared to Europe."

Is there anything - be it policy or market-driven - that would stimulate further opportunities in Turkey?

Spadacini says that despite the government support and Siemens is celebrating its 160th year of business in Turkey this regulations "which are not done so effectively in most other year. Its first activity was the supply of telegraph equipment in countries, private investors still find some difficulties in the 1856 followed by Dolmabahce Gazhane power plant in 1906 to bureaucratic process". provide electricity for lighting Istanbul's streets.

"Getting a license is a difficult and long process. To foster the Today Siemens has over 3500 employees and two growth of the energy market and meet the 2023 target, some manufacturing plants in Turkey and the company claims it is measures should be introduced to speed up the bureaucratic involved in around one third of Turkey's installed power capacity procedure. The current incentives that are in place should be in terms of products and solutions. extended beyond 2020 with increased rates for feed-in tariffs."

Gisbert says that another step taken by the Turkish government He adds that the grid structure is also "a key factor which requires towards a more competitive energy sector is the establishment of constant upgrade in order to allow for addition of new installed an energy stock exchange. "Once operational, it will not only capacity, especially renewable energy-based power plants, enhance the liberalization of the market, but also ensure since all renewable resources other than geothermal are transparency and help maintain a healthy balance between intermittent and will require adaptation to existing grids.“ supply and demand."

Political tension On untapped potential in Turkey, Wärtsilä's Hurkal says the projection of the future power market shows that "established Turkey's proximity to the troubled hot spots of the Middle East capacity has to reach 120 GW in 2023. This means that there have seen it make the headlines all too often in the past year or so, and these developments cast a shadow over the power sector's potential.

Spadacini says that "considering the geopolitical location of Turkey, there is constant political tension among the neighbouring countries in the region which will affect investments in the east and southeast regions of Turkey".

But he adds that "considering that most of the industrial zones are located in the west and central Turkey, investments will continue as long as the general world economics allow growth".

Caputo at SPIG is not so sure. "Turkey is facing challenges both at home and region-wise, because of the current difficult international environment. Moreover, Turkey's economy needs deep structural reforms to boost productivity and transparency.

"The country's political and economic stability are highly vulnerable, while its security faces rising threats from regional Islamist extremists. The continuing domestic political uncertainty and tensions influence the country's growth. This may negatively affect consumer confidence and investment sentiment, strongly depending on how the political issues will be might be a 15,000-20,000 MW project potential for the coming solved. Turkey needs a stable government and deep structural years in addition to nuclear power plants, which will have a total reforms in order to restore investor confidence."

15,000 MW of installed capacity with three nuclear power plants However, Gisbert says that Siemens believes that the Turkish in 2023." electricity market will "continue to be a strategic sector for the He says the drive to reduce gas imports means that the investors and the financiers due to sound fundamentals in the government believes that existing gas plants "are enough... and long term". It is Turkey's dependence on Russian natural gas that there shall not be additional big investments on this type of fuel". he sees as the most "fragile situation".

He expects to see growth in solar and wind together with coal, Of Turkey's annual gas imports, Russia accounts for 55 per cent, and also adds that "reciprocating engine-based natural gas Iran 19 per cent, Azerbaijan 13 per cent, Algeria 9 per cent and power plant investments may continue as peaker plants, due to Nigeria 4 per cent. And natural gas is the source of 48 per cent of their fast ramp-up and -down capacity, short delivery time and total energy production. flexibility".

Gisbert says that a growth area will be solar. "There are already 13

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Energy

Investing in Africa's Renewable Energy Sector Growing appetite for foreign direct investment in Africa's renewable energy sector promises to help address the continent's surging power demand.

(IPPs). The rapid roll-out of solar and wind energy projects in recent years in some African countries suggests that renewables have an increasing role to play in Africa's overall energy mix.

"Renewable energy is emerging as a mainstream energy source in Africa, an alternative that Africa needs,” said Ahmed Jaffer, Chairman of KPMG Southern Africa.

“This alternative, however, may have implications for conventional coal-based generation." Speaking at African Utility Week, Michael Liebreich, founder of Bloomberg New Energy Finance, emphasized the positive investment climate that exists for renewable energy, saying: "The accepted wisdom has been that clean energy is good in theory, but prohibitively expensive in practice. This is wrong."

Africa desperately needs more electricity, with economic projections indicating rapid growth for many of its constituent nations. The African Union forecasts that the continent's collective GDP will multiply six-fold between 2010 and 2040. To fuel this growth, it estimates that Africa's power-generation capacity will have to increase from 590 terawatt hours to 3,100 over the same period.

Mr Liebreich cited statistics showing the cost of solar energy has fallen by 80 per cent since 2010, making it an economically viable source. With the price of solar expected to decline further, the conventional coal-based generation market faces serious competition from renewable energy IPPs. Among the main advantages of solar is its ability to provide modular solutions in Africa's more remote areas. It’s a more feasible option than Energy is the biggest driver of economies. Access to affordable, extending expensive power lines to small, far-flung communities. durable electricity, together with the technology to light up the South Africa is currently leading the continent's drive towards continent's vast rural area; which is largely cut off from national greater use of solar energy. grids, is becoming the most critical factor in Africa's Wind is another renewable-energy source that has enjoyed rapid development. development in recent years. This has stimulated interest from Conventional utility grids are already straining at full capacity and the private sector, with technological improvements driving down relying heavily on fossil fuels. The set-up cannot sustain the the cost of wind energy, enabling wind projects to feed power into massive demand and there is limited government capital to the grid at a competitive price. South Africa, in particular, has remedy this, creating a gap for international private-sector huge wind energy potential, and has seen a substantial number energy players to make up the shortfall. of wind farms set up as part of the government's renewable African electricity state monopolies, in cooperation with the energy procurement program. private sector, are now seeking smarter, cheaper and faster Hydroelectric technology is another opportunity in Africa's power ways of producing energy to tackle the continent's huge and energy sector. "Central Africa has the richest hydro electricity deficit. Many experts are convinced that Africa needs resources in Africa,” said Mr Jaffer. “Large-scale hydro to increase its proportion of electricity produced from renewable development is attractive, as it can lower the average cost of sources – predominantly solar, wind and hydroelectric. Speaking electricity more cost-effectively than other technologies, while at the World Economic Forum on Africa in Rwanda, Jubril also providing base load power to the region."

Adewale Tinubu, Group Chief Executive of the Nigerian energy If the Democratic Republic of Congo's Grand Inga hydroelectric giant Oando, emphasised the need for a changing energy mix. project comes to fruition, it will help meet sub-Saharan Africa's "Africa has no choice but to move rapidly towards a smart mix of electricity demand. Once online, its output and benefits will be energy systems if it is to grow and prosper in step with the rest of shared among several neighboring countries, helping to address the world," said Mr Tinubu. electricity supply deficits and support economic development Africa has a growing private-sector market for renewable energy across the region. Many skeptics, however, see renewables as ventures. As a result, investors see considerable potential in playing only a marginal role in energizing Africa, compared with, developing technologies that can lead to clean, sustainable for example, the potential of large-scale nuclear power. For energy generation. The energy markets of many African countries that can't afford the huge initial capital costs of nuclear countries are undergoing a structural shift towards a more plants, renewables may have an increasing role to play. integrated renewable energy economy. Addressing African Encouraging the Private Sector Utility Week, an annual conference of global energy professionals held in Cape Town, Mongezi Ntsokolo, Group Renewable energy is clearly changing the way state power Chief Executive (distribution) of South Africa's state power utility, utilities in Africa operate, particularly when it comes to Eskom, said: "The traditional model of electricity generation as a encouraging greater involvement by the IPPs. In many ways, the natural monopoly is being disproven by small alternative power private sector is now becoming indispensable to African energy production.There is real appetite for FDI in renewable energy. entities.“ Energy authorities of several African countries are adopting an Several African governments have already shown a policy open energy market model, paving the way for companies to commitment to renewable-energy deployment by making invest in power generation. investment vehicles available for independent power producers 14

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Ecology

2016 in review: UN climate talks deliver mixed progress The COP22 summit was dominated by Donald Trump's shock The effects of climate change are hitting us fast and furious and election win, but amid the gloom there were kernels of progress we are under increasing pressure to make our economies, infrastructure, agriculture and the water sector more climate says St Lucia minister. resilient.

To achieve this, we need to see improved access of We might not look back at the Marrakech climate conference and developing countries to climate finance. say it was a resounding success.

By far the most significant circumstance that shaped the talks Although the amount of money we need to spend now seems was the early entry into force of the Paris Agreement, which large, it pales in comparison with what we will need to spend in the future. We must recognise that the cost of inaction is happened in less than a year since its adoption. monumental – just think of the refugee crisis we would have on And not just by scraping across the double threshold of 55 our hands if we delay – millions of people across Africa, the countries and 55 percent global emissions but well and truly Caribbean, Pacific and Asia who have to abandon their countries vaulting over it, with 100 ratifications covering nearly 70 precent due to climate change. of global emissions by the start of the conference.

Just this thought should be enough to mobilise climate action and This caught many by surprise, which also meant that the start bending the greenhouse gas emissions curve downwards envisioned preparatory work was simply not done. as soon as possible.

While it would have been good if early entry into force stayed as The urgency for climate action is not just science anymore, it's the main focus, the Trump victory had a dampening effect on the what's unfolding around us. Not just small islands are affected by climate talks. climate change – everywhere we see drought, extreme weather events.

These increasingly intense and wide-spread climate But it was a temporary effect because it also prompted a show of conviction of the entire world of the necessity and urgency of impacts should be the strongest clarion call to the global climate action; that no matter what Trump says, the coalition of community that we need to take action to address climate countries – over 100 governments committed to doing change and it shouldn't take more cataclysmic events to realise something about climate change – is much bigger than the U.S. that.

The Marrakech talks certainly haven't taken us off course in There are a couple of factors that pose a risk to the implementing the Paris Agreement and, in modest ways, they implementation of the Paris Agreement. First, we have to assume that the new political situation in the U.S. will affect the have set the stage for 2017. climate negotiation process.

Marrakech COP22 will be remembered for the fact that it Not just philosophically, through the added boost to climate convened the first Conference of the Parties to the Paris scepticism, but because historically the U.S. has provided Agreement (CMA). significant financial support to the UNFCCC, the It decided that we will finalise the rules for implementing the Intergovernmental Panel on Climate Change and the Green Agreement by 2018. It also set out how we start preparing for the Climate Fund.

2018 Facilitative Dialogue – the next major political moment when the UNFCCC evaluates the aggregate emissions We hope that good sense prevails and here we find reduction pledges in relation to the 1.5°C limit in the Paris encouragement in some of the recent pleas made to president elect Trump from scientists and business leaders to continue Agreement, supported by IPCC's Special Report on 1.5C. with US leadership on climate action.

Now we have to keep the momentum and it's extremely important that we do so in 2017. We need to be even more The other threat is that small island states could become ambitious in our mitigation efforts to be in line with the 1.5C limit – despondent without adequate support to help us adapt to climate change. We SIDS left Paris believing for the first time that the one of the key small island demands. world was finally listening to our concerns. Now we need to see To underpin this, we need to see more mobilisation of climate further encouragement on the international level, with for finance and more rapid deployment of renewable energy example the GCF approving projects already in the pipeline. solutions right across the globe.

Of course, we as SIDS also have to devote some our own These two issues which are of utmost concert to small island severely limited resources to submitting projects to the GCF but developing states – climate finance and increased ambition to we also need support with this process due to the significant reduce greenhouse gas emissions – will also be at the centre of institutional deficiencies in our countries. the next climate summit, hosted in Bonn under a Fijian We need also to start looking at how we can pool our resources presidency. and mobilise funding at the regional level. Islands across the The pivotal question for 2017 is how to mobilise climate finance, Pacific, Caribbean and Indian Oceans face very similar issues, especially for adaptation. For example, last year French like climate impacts on water availability and agriculture, and President Hollande announced a USD $5 billion climate finance require similar solutions. pledge but only one fifth of it is earmarked for adaptation.

In the Caribbean, the only time we saw the entire community Small islands and other vulnerable countries believe that the split mobilised in calling for climate action was when we engaged with between climate finance for mitigation and adaptation should be our non-state actors – the youth movement, journalists, artists, fifty-fifty. the private sector.

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Ecology

Top 10 Carbon Market Trends for 2017 The Climate Trust, a mission-driven nonprofit that specializes in mobilizing conservation finance for climate benefit, announced its fourth annual prediction list of 10 carbon market trends to watch in 2017.

The trends, which range from more native tribes joining carbon markets to environmental justice concerns playing an increased role in climate policy discussions, were identified by The Climate Trust based on interactions with their diverse group of working partners — government, investors, project developers, large businesses and the philanthropic community.

mayors from 128 cities will pick up the cause. In the Midwest, wind turbines continue to rise out of the cornfields. And back here in Oregon, the Department of Environmental Quality is wrapping up the draft considerations for a cap-and-trade program for the state.

In the vacuum created by a Pruitt-led EPA and a Tillerson-led State Department, rulings like the one issued by Judge Aiken, and statements like the one from California Gov. Jerry Brown challenging Trump on climate change, indicate where the action will be for the next four years. We predict that as our nation heads into uncertain times with respect to climate change policy and This year, more than ever, we felt there was a need for positivity, action, states, cities and regional collaborative groups are going and have primarily chosen to share industry insights that are to lead the fight against climate change. positive in nature — yet still strongly based in reality. We expect that the New Year will bring together unlikely, yet strong, 2. Progressive states and foundations will pick up support domestic partnerships with corresponding resolve to address for domestic climate finance in the absence of federal action climate change, and we look forward to seeing what we can We expect that climate denial from federal leaders will alarm accomplish by banding together.” foundations and progressive states. Many foundations “After collectively looking at the overall market, our team has identified areas of potential advancement, despite the anticipated inaction around climate at the federal level,” said Sean Penrith, executive director for The Climate Trust. “

1. States, cities and regions will lead the U.S. fight against previously had an international climate focus, and we anticipate that these institutions will refocus their U.S. agenda, which is now climate change There are a lot of reasons to love living in Oregon — including the needed more than ever here at home.Additionally, the political fact that U.S. District Judge Ann Aiken recently issued an opinion will for carbon pricing will grow in progressive states, demanding and order denying the U.S. government and fossil fuel industry’s more immediate state action. Increasingly, public entities are aware that their dollars are most efficiently and effectively used motions to dismiss a climate change lawsuit filed by 21 youth. when they leverage private capital. In 2017, states and It’s clear to us that many states and regions have already foundations will look for opportunities to mitigate risks to private committed to reducing greenhouse gas emissions and climate finance providers investing in the U.S. through creative supporting a clean-energy future. In New York City, former Mayor new financial mechanisms like first loss capital contributions, Michael Bloomberg threw down the gauntlet and warned that if loan guarantees, credit enhancements and other new structures. the Trump administration withdraws from the Paris Accord, 16

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Ecology 3. Global climate litigation campaigns will gain momentum The California Compliance Offset Protocol, U.S. Forest Projects during 2017, legitimizing our children’s right to a healthy now has more than 34 million offset credits issued. This total includes over 7.7 million tons from properties owned by Native planet American Tribes; nine projects located in six different states. In “This is no ordinary lawsuit,” U.S. District Judge Ann Aiken wrote fact, the second largest individual issuance to date in the in her 54-page ruling on Nov. 10, 2016 on a landmark case filed in California market is from the White Mountain Apache tribe Oregon by 21 youth plaintiffs. project in Arizona, with over 4 million offset credits issued in year The young people alleged that the government over the last 50 one. years, including President Barack Obama, violated their constitutional rights and imperiled their future by failing to The financial and environmental benefits from participating in adequately reduce greenhouse gas emissions. Whether the carbon markets provide a clear incentive for tribes to become case is heard in federal court or settled, it provides a solid legal market actors. foundation for future climate litigation — and gives hope to the The National Indian Carbon Coalition published an article, Carbon Credits Help Tribes Preserve Culture, Climate and growing ranks of youth climate activists and their supporters.

Bottom Line, in early 2016, describing how securing a USDA The world is watching this historic precedent set in Oregon. We Conservation Innovation Grant was a game-changer in predict the optimism gained from this victory will encourage judges and activists alike to look to the courts to validate the improving tribal access to carbon markets, and the wide array of science behind climate change and allow judicial systems to benefits market participation brings.

8. China takes the lead in carbon markets, encouraging linkages 4. Private industry picks up U.S. government slack making 2017 isn’t only the year of the rooster in the Chinese calendar, it is progress toward Paris commitments During his campaign, President-elect Donald Trump referred to also the year China will take a leading role in using markets to climate change as a Chinese hoax and repeatedly asserted that fight global climate change. After several years of piloting regional emissions trading programs, China will launch a he will “cancel” the Paris Agreement. national system that will cover over 4 billion tons of greenhouse While he has walked back these statements somewhat over the gas emissions, making it twice as large as the next biggest last few weeks — most recently saying that “nobody really market in Europe. knows” if climate change is real — his pick ofOklahoma Attorney General Scott Pruitt to lead the Environmental Protection Agency 9. U.S.-based institutional investors will increase (EPA) certainly suggests that Trump is going to try and make commitments to investments that hedge out carbon risk Following the example of Norway’s Sovereign Wealth Fund and good on his campaign promises. other large European institutional investors, U.S.-based 5. Environmental justice community concerns increasingly pensions and family offices will continue to de-risk their portfolios built into climate policy discussions throughout the U.S. from the negative impacts of climate change, and take The environmental justice community in California has brought advantage of opportunities in the sustainable real assets space. into sharp focus the need to balance the impact on 10. California Air Resources Board prevails in CalChamber disadvantaged communities with climate policy and programs. lawsuit and commits to cap and trade A 2016 preliminary paper rightly points out that large carbon polluters are more likely to be located in poor communities and A longstanding lawsuit filed by the California Chamber of communities of color. Environmental justice proponents Commerce, Morning Star Packing Co. and the National successfully ensured that the passage of SB 32 that extends Association of Manufacturers has hung over the cap-and-trade California’s climate goals to 2030 was contingent on the approval market. of AB 197 that requires the Air Resources Board to “prioritize … The lawsuit argues that the auctioning of the cap-and-trade emission reduction rules and regulations that result in direct allowances constitutes an illegal tax since it does not have the emission reductions” while designing cost-effective policy to approval of two-thirds of the Legislature. There are three meet the steep emission reduction requirements of Senate Bill possible outcomes for the suit. It may be deemed a tax, and cause 32. require governments to take tangible action.

6. U.S. citizens become climate refugees in one of the California to have a cap-and-trade system without the auction element unless the Legislature approves with a two-thirds vote. It hottest years on record It is well established that the top 10 hottest years recorded in could be deemed a regulatory fee, and thus uphold the validity of human history have all occurred since 1998, and 2016 is likely to the allowance auctions. Or, the court could find that the auction is be among them. While the effects of El Nino are waning and 2017 neither a tax nor a fee but something else not subject to the is expected to be cooler than the previous year, there is not much strictures of tax voting requirements under the state constitution. relief to be found, as 2017 will also likely be among the top 10 The bottom line hottest years on record.

“In 2016, a number of our predictions came to fruition, including an increased number of institutions committing to divest from Regrettably, it is anticipated that this continued trend will give rise fossil fuel companies as part of the transition to a clean energy to an increasing number of climate refugees, even within U.S. future,” said Kristen Kleiman, director of Investments for The borders. In a sad turn of events, the Biloxi-Chitimacha Tribe in Climate Trust.

Louisiana is considered the first official community of climate The Trust executed a milestone contract with the David and Lucile Packard Foundation — securing a $5.5 million Programrefugees in this country.

Related Investment to seed our first-of-its-kind carbon 7. More native tribes will join carbon markets investment fund.”

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Ecology

Real-time energy data open to all A new tool known as the Electricity Map provides real-time data, free to all, about European energy use and CO2 emissions.

A new tool known as the Electricity Map provides real-time data, to support the energy transition. free to all, about European energy use and CO2 emissions. It is But Corradi insists that the tool is merely intended to “show things provided by start-up company Tomorrow, which was set up by as they are”.

Danish-French computer expert Olivier Corradi.

Data for the map is currently provided by the European Network The map has been online since September and comes in the of Transmission System Operators (ENTSO-E) but it is often wake of five months of development. Corradi pursued the idea supplemented by other information, for example, from French out of pure curiosity initially, while working at an IT start-up that network operator RTE. dealt with artificial intelligence.

The Electricity Map then uses a conversion formula provided by

But the question of how to transition Europe’s carbon-heavy energy needs towards renewable sources interested him more.

He told Der Tagesspiegel that he quit his job quite recently as a result.

the Intergovernmental Panel on Climate Change (IPCC) in order to grade a country’s CO2 emissions, using a sliding scale from green to black.

Norway and France top their list of emitters currently due to their In the meantime, he has assembled a small team of energy and reliance on hydropower and nuclear energy, respectively. Poland is firmly in the black because nearly 100% of energy is produced IT experts with whom he wants to meet his goals. from coal-fired power plants and other carbon-heavy sources.

One of the team members is Thierry Ollivero, who said that most people access the tool, are impressed with it and often return. The map also takes into account imports and exports between companies and provides a visualisation for solar and wind “But some use the visualisation in their arguments,” he added.

Nuclear energy advocates use data from windless winter days to potential. argue that Germany should maintain its reliance on atomic The developers have made the tool open-source software so energy. Similarly, wind and solar proponents use good days for that anyone can access and improve it as they see fit. Corradi clean energy, when the clouds have cleared and the wind blows, said that this approach has “worked well”.

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Ecology

Inside NVP Energy's plan to clean up the wastewater treatment industry Treating wastewater is big business. Globally, the annual capital spend on wastewater treatment clocks in at around £40bn, much of it from firms forced to pay hefty wastewater sewage charges to water companies. process."

NVP Energy says its technology - developed over the course of 15 years by researchers at the National University of Ireland, Galway, before being licensed to NVP Energy three years ago can dramatically cut costs for both scenarios.

Its system is based on a new kind of microbial coating on granules, which kick-starts the anaerobic digestion process at temperatures below 20 degrees Celsius. The system is therefore able to remove 80 per cent of COD in the water and 50 per cent of all the suspended solids with minimal energy input. As an added bonus, it also produces high quality methane biogas, which can then be fed back into a company's boilers or combined heat and power plant to power its other on-site operations.

For companies that pay for their wastewater to be taken away and treated externally, the system does require a hefty upfront capital investment - upwards of £800,000, Shinkwin says - to install. But if they are willing to invest, he promises a payback period of less than three years and overall a 60 per cent cut to the wastewater charges paid to the water companies. This is Enter NVP Energy, which claims to offer a "revolution in because although the water coming out of NVP's technology still wastewater treatment" by using innovative anaerobic digestion needs further treatment, it is much cleaner - and therefore (AD) technology to shift wastewater from a burdensome cheaper to take away - than it would otherwise be, Shinkwin explains. obligation to a revenue generator for business.

It's also a dirty business. Depending on the process used, it can require huge amounts of energy to strip toxic elements from water, and often it leaves behind "sludge" - which looks exactly like you would imagine - that is subject to stringent regulations on its treatment and disposal.

To get under the skin of this promise, it's necessary to understand Meanwhile, for companies treating their wastewater on site more common in Ireland, where NVP Energy is based - the AD how the wastewater market works in a little more detail. technology can work in conjunction with an activated sludge as a For the dairy, brewing and meat processing industries, cheaper solution for expansion or a first treatment system to get wastewater treatment is a big part of their operations. For the bulk of the cleaning done at a lower cost, before the example, a large brewery might produce as much as 2,000 cubic wastewater is transferred to the activated sludge treatment tank. metres of wastewater every day - wastewater that must by law be cleaned and treated before it can be released in a water way or In both situations, companies can save money by using the biogas on-site instead of mains power, and even generate re-enter the water system. revenue via the Renewable Heat Incentive (RHI). However, Most firms deal with their wastewater in two ways. Those with no Shinkwin is keen to stress the subsidy payments only make up a access to industrial sewers process their wastewater on site, "small proportion" of the financial case for NVP's technology, usually through a process known as "activated sludge". "This is contributing only around 10 per cent to the return for a company 100-year-old technology which requires a big tank that is open to using external wastewater treatment, so the financial case for the air, to allow aeration, and it has quite a large energy input in to investment is not dependent on government policy. aerate the effluent coming in," explains Joe Shinkwin, business development manager at NVP Energy. Essentially, the waste The market for this type of technology is sizeable - within the UK water is kept moving by a high-energy system of pumps, and alone NVP has identified 286 brewery sites, 40 dairy companies, eventually the chemical oxygen demand (COD) - the organic 35 distilleries,, 24 malting sites and 80 meat processing sites that component that makes it wastewater - is separated out to form a could all be suitable for its technology. It still has some way to go before it has a proven installation in each of its target markets, sludge. but with a BusinessGreen Technology Award for Breakthrough of In the UK however, the more common solution is to pay water the Year under its belt and a suite of projects in the pipeline, by companies to take the wastewater effluent away via their early next year NVP Energy could well have established a industrial sewerage system and treat it at a central treatment significant foothold in the core sectors of the wastewater plant - a "beefed-up" version of the kind of facility that treats industry. It may lack the glamour of other cleantech start-ups household water waste, according to Shinkwin. This may be the those with hip Shoreditch offices and sleek new apps - but NVP's simpler option, particularly for firms constricted by space and an promise of dramatic cost savings plus bonus energy generation urban location, but it is also very expensive. makes it potentially one of the most disruptive cleantech startAccording to Shinkwin, a large brewer paying for up to 2,000 ups around. cubic metres of wastewater to be taken away each day could be facing an annual treatment cost of up to £2m. "Firms pay a huge premium to elute into a sewer," Shinkwin says. "It's an expensive 19

energyandecology.com

Issue 1 February 2017

Ecology

Industrial strategy: Are environmental ďŹ rms at risk of missing out?

Matthew Farrow argues the government's promised industrial strategy could be strengthened by a sustained focus on environmental industries. renewables. It also feels more 'future-orientated' than a traditional environmental activity such as contaminated land clean up. But there are several reasons why the broader environmental sector (encompassing sub-sectors such as waste management, land remediation, environmental laboratories, flood defence and so on) has real industrial strategy potential.

First, the broader sector is particularly effective at generating jobs across the UK. Most of our member companies at the Environmental Industries Commission (EIC) are based outside London and the South East - many firms involved in tackling industrial pollution are inevitably based in the old industrial heartlands, while for facilities such as waste management and recycling plants there is an inevitable spread across the country.

The skill levels of those jobs are also varied, with a good mix of technical apprenticeship type roles alongside graduate and postgraduate scientific and consultancy roles.

Many developing countries around the world have rising middle classes who are no longer prepared to put up with dirty air and water, which has created an urgent need for skills and technology which we have.

It's always worth pointing out that the demand for such local environmental services is less vulnerable to any damage President Trump may do to global climate action plans - the need to clean up local environments is unrelated to what the international community does.

Third, building a strong home market for the environmental sector needs policy tweaks more than subsidy - something which makes it attractive to a government without much spare cash.

Industrial strategy is back in vogue, but I'm old enough to remember several of the previous iterations - such as the muscular attempts to build around sector strengths by Michael Heseltine in his mid-1990s pomp (when his baroque job title Deputy Prime Minister and President of the Board of Trade - was more eye catching than any policy success) and Lord Mandelson's attempt over a decade later at the DTI to boost manufacturing through a series of industrial strategies as a response to the 2008 crash.

It would be hard to discern much lasting impact on the shape, structure or success of the British economy from these efforts, but I don't think we should dismiss the latest revival of the industrial strategy approach out of hand. For one thing, both Heseltine and Mandelson were uneasy allies of weak Prime Ministers, Major and Brown, neither of whom seemed much interested in the topic, whereas Theresa May as a new and unchallenged PM is at the peak of her powers and has made a new industrial strategy a priority. At the same time, the shock of Brexit to the political system has made politicians and policy makers more willing to look at radical ideas.As someone who represents a wide range of environmental businesses I feel the traditional environmental protection sector could benefit from being part of an industrial strategy, but is at risk of missing out.

This is partly due to definitions - the 'low carbon sector' has become the preferred green ingredient of contemporary industrial strategies, in part because it emphasises readily identifiable flagship technologies such as electric vehicles and 20

And lastly, the green sector has public support. Research for the Greener UK coalition run by Green Alliance shows 80 per cent of people want environmental standards to be as strong as or stronger than they currently are after we leave the EU. So what would be the core elements of an industrial strategy for the environmental sector? We would need to start off by being clear about where we enjoyed a clear competitive advantage.

Land remediation, air pollution control, flood risk management, offshore decommissioning, and combining expertise and analysis to solve complex environmental urban problems would be just some examples.We also need to ensure that post-Brexit there is a clear direction of travel for environmental policy which continues to see environmental standards steadily increasing and proper enforcement. And then we need a much better approach to environmental exports by the new Department of International Trade, which needs to work with bodies like my own to map the markets which offer most potential over the next five years. Other issues to be looked at include public procurement and how we make best use of our world class universities and financial sector.

While Brexit has put the environmental business sector on the back foot, the industrial strategy agenda is a chance to get on the front foot. In the coming months we at the EIC will be setting out a blueprint for such an industrial strategy. The opportunity is there let's grasp it. energyandecology.com

Issue 1 February 2017

Conference Highlights Global Market Trends, Challenges and Key Drivers Updates from Major Projects in the Region – SABIC, KNPC, YASREF, ORPIC, BAPCO

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OIL&GAS

Interesting state of affairs in global oil and gas Global growth in the oil and gas sector is expected to rise moderately at about 3.3% through 2017.

Other companies in the Middle East region are expected to reduce capital investment to continue the trend that was seen in 2016 where expenditure was cut by ~ 30 % in 2016 - more $200bn worth of projects were canceled or postponed.

Another important country is Iraq which produces about 4% of the global oil supply and is the second-largest producer in OPEC after Saudi Arabia. Iraq also possesses a potential for increasing its share in global oil supply since great amounts of proven reserves are still under-explored and the cost of oil production is lower than in many ME producing countries. In 2009, the federal government started awarding Technical Service Contracts (TSCs) to international oil companies: the government reimburses for the cost of oil production and CAPEX plus an agreed fee per barrel of production. The government has come to an agreement with BP, Shell and Lukoil to restart investment to increase output that will bring another 250,000bpd in 2017.

Colin Chapman, President of Euro Petroleum Consultants.

ExxonMobil and PetroChina are also discussing their plans to boost production within the country.But the limitations of It would be interesting to consider certain observations.

Technical Service Contracts may impact Iraq’s medium-term oil Increase of oil production in North America as well as the recent sector expansion plans. The government plans to increase oil announcement of major reserves found in Texas, USA has not production capacity by 2020 via service contracts. Of course led to a global oil price collapse as we saw previously. much depends upon future agreements between OPEC The recent news about the privatisation of 19.5% of the largest producers as to what level Iraq may reach.

Russian oil company – Rosneft – by the JV between Glencore Existing oil pipeline infrastructure, especially for export, will and the Qatar Fund led to a bounce in oil prices as the shares of require upgrading if oil exports are to be substantially increased. the company reached an all-time high. The future of oil Operators also face a deficit of drilling rigs and water resources. production in Russia may not be so clear for many industry It is expected that there will be no more than 1.4% production experts; we are seeing a reduction in the amount of oil processed increase for Iraq in 2017 due in part to the fact that the existing in many Russian and CIS refineries. Hence, this leaves more for production facilities are reaching their peak capacity. Within the export markets at similar levels of production. these conditions it’s more likely that oil production in Iraq will reach only 6.5-7.0mbpd by 2020.

A number of factors including the growing cost of production in some regions, the role of OPEC in coordinating the scope of Ratification of OPEC’s production control agreement in late 2016 production all around the globe and the volatility of the US dollar, could lead to increased production of US shale oil and gas. The may provide a basis for sustaining the current levels of oil prices fall in production by OPEC countries could be substituted by at in the mid term (see graph).The continued rise in the global trade least 500,000bpd from shale sources. of oil is expected to reach a peak at about 37mbpd in 2017. The volume of oil refining and petrochemicals production is expected US operators expect this year to be the plateau for oil prices and to increase in some regions while margins remain relatively high. anticipate a slight increase in 2018, to raise shale production in Some regions may suffer from overcapacity, especially where the US to a substantial amount. The price of $60/barrel is construction is the most active, like Asia. The Middle East will considered to be the minimum required. OPEC is likely to continue to maintain its position as a major refining centre and monitor closely US companies as they invest and build wells in the USA could also increase its export volumes once more new 2017 before the planned meeting in May – this will definitely impact the results of that meeting. oilfields come into production.

The largest potential players in terms of spare capacity are Saudi Another important factor to consider is the new president elect of Arabia and Iran; both countries are seeking significant the USA who is expected to bring to the White House an investment to maintain and expand the existing level of advocate for oil and gas drilling. US unconventional shale oil production. The lifting of Iran’s sanctions has led to a significant production is expected to decrease further in 2017 (since the change within the region. Iran could become one of the fastest peak of 4.9mbpd in 2015) before its possible revival of 11% in growing economies in the region over the next five years as 2018, according to the US Energy Information Administration. investment comes into the country (NIOC will need ~ $134bn for However if US oil companies continue to increase production, future upstream oil and gas projects by 2021). Potential growth is this will no doubt impact future decisions by OPEC producers regarding their own production levels and will inevitably result in expected to be in the region of 5% in the period 2016 -2020. pressure on crude oil price levels.

The Iranian government gave approval for the new general scheme of Integrated Petroleum Contacts (IPC), and this is expected to support the development of the industry even more.

Iraq’s oil ministry is postponing a bidding round for 12 small- and medium-sized oil fields across three provinces to the middle of 2017.

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Issue 1 February 2017

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OIL&GAS

Securing Big Data While Big Data has helped oil and gas operators optimise operations, it has also exposed systems to cyberttacks. Leo Simonovich, director of Global Cyber Strategy and Product Development at Siemens talks about why companies need to strengthen their cyber defence Could you give me an idea as to how important cybersecurity is to the oil and gas industry?

It is a top issue of the day. This wasn’t the case a few years ago, but the number of cyberattacks continues to grow - including both known and unknown attacks. And we know that operational technology has become a growing target, now comprising 30% of all cyberattacks. In this region, 50% of all cyberattacks are directed against the oil and gas industry. So it has a major impact on productivity, uptime, efficiency and safety.

What is your opinion of the recent Stuxnet virus attack on Aramco?

What I say to customers is that the probability of a cyberattack is almost 100%. The only question is what are they going to do about it. On an average, the oil and gas player experiences two to three major cyberattacks a year.

Leo Simonovich, Director of Global Cyber Strategy and Above all, we believe in holistic cybersecurity – the need to Product Development at Siemens prevent and respond to attacks.

Siemens as a major industrial enterprise caters to a lot of Yes, it is a key concern. Smarter infrastructure that takes segments – Big Data being a part of the offering. advantage of software and the ‘Internet of Things’ can provide Does the onus also fall on you to combine that with cyber more points of entry for cyber attackers. I advise our customers defence systems? to take a risk-based approach to build connectivity in blocks.

For Siemens, cybersecurity is a strong part of our vision for Make sure you are connecting securely. We understand that at digitalisation and intelligent infrastructure. We recognise that the top of the environment, it is not just about connecting two using a risk-based approach to managing cybersecurity is control centres, but also connecting those with pipelines and offshore facilities to be able to perform remote monitoring, important. automation and optimisation, securely. We have designed Connectivity to be able to achieve operational excellence, which systems to address all of that. We call these systems ‘blueprints.’ is a key part of digitalisation, is also important.

At a time when the oil and gas industry is heavily cutting But that connectivity also enables you to have situational down on CAPEX, how would you convince your clients to awareness. And the lower the level you can go into the asset, or adopt cyber defence measures? equipment, the greater transparency you will have, and the more If you look at the industry, one area where budgets have not precise you can be in employing countermeasures. stayed flat, or have even risen, is around cybersecurity. That A flipside to digitalisation is also that it is making systems means we don’t have to convince our customers that vulnerable to cyberattacks, as the one witnessed by Aramco cybersecurity is an important issue they need to address. They recently. What is your opinion on this and how would you already know this. They just need to understand what is mission convince your client to adopt cybersecurity measures? critical.

MEOS 2017 to focus on innovation and operational excellence

outcome of their significant investment.

This conference will reflect on the importance of industry transformation, and will address it from many perspectives through panels with invited industry leaders, presentations and The MEOS exhibition is the most established showcase of oil open discussions,” said Michael Bittar, 2017 MEOS conference and gas products and services in the Middle East, attracting programme co-chairman and senior director at Halliburton.

NOCs, IOCs and major operating companies. Inaugurated in The exhibition will feature over 200 exhibitors from 30 countries, 1979, the profile covers all areas of the upstream oil and gas including GCC national oil and gas companies, international industry and this three day event consistently attracts over 8,000 supermajors, service industry giants and independent specialist high quality attendees. This year’s high-level conference takes suppliers and distributors from across the globe. place under the theme ‘Transforming the Industry through Innovation and Operational Excellence’. “We as an industry are entering a new age of transformation through innovative ways of For further information see the website at www.meos2017.com finding and developing reserves. Operators and service companies are identifying opportunities to do more with less through operational excellence while evaluating the financial 24

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OIL&GAS

Flue gas analysis – brilliantly easy: testo 350 – the first flue gas analyzer that thinks ahead data even when the flue gas pipe and the adjustment site are separated, especially helpful for industrial burners, for example.

Measurement data can be transferred from the analyzer box to the control unit. This means the analyzer box can remain at the measurement site for further measurements, and the control unit taken away in order to process the measurement data.

In order to protect the display in measurements over a longer period or during transport to different measurement sites in a system, the control unit can be attached to the analyzer box facedown.

Large colour graphic display with application-specific menu The following measurement objects are available: - Burner - Gas turbine - Engines (Select λ > 1 or λ ≤ 1 regulated industrial engines) User-defined.

Typical fuels, a practicable order of the exhaust gas parameters in the display, the corresponding calculations as well as useful instrument pre-settings, are stored under each of these measurement objects. Examples of these are the activation of the dilution in measurements on λ ≤ 1 regulated industrial engines and gas turbines, or the testing of the relevant gas sensor in the dilution slot.

The advantages of the application-specific menu -Information in the display guides the user through the menu.

-Easy operation without previous knowledge of the instrument -Reduction of the work steps before the start of the measurement.

Analyzer box – industrial standard, robust and reliable The portable flue gas analyzer testo 350 is the ideal tool for In the analyzer box are the gas sensors, the measurement gas professional flue gas analysis. Helpful instrument settings guide and rinsing pumps, the Peltier gas preparation (optional), gas paths, filters, analysis and storage electronics as well as the the user safely through typical measurement tasks such as: mains unit and the Li-ion battery.

- Flue gas analysis in commissioning, setting, optimization or The robust housing has built-in impact protection (specially operational measurements on industrial burners, stationary constructed X-shaped rubber edges), allowing the analyzer box industrial engines, gas turbines and flue gas purification systems. to be used in tough conditions. Downtimes due to dirt in the - Control and monitoring of officially prescribed emission limits in instrument are almost completely eliminated by intelligent design and robustness. Inherently sealed chambers protect the interior exhaust gas. of the instrument from dirt from the surroundings.

- Function testing of stationary emission measuring instruments.

Operation can be carried out with the control unit or in direct - Control and monitoring of defined gas atmospheres in furnace connection with a PC or notebook (USB, Bluetooth® 2.0 oder rooms or kilns in different processes.

CANCase). The analyzer box can, after programming, independently carry out measurements and store measurement Control unit – small and convenient The control unit is the operating and display unit of the testo 350. data.The plug-in connections for the probes and bus cables are It can be removed and equipped as standard with a Li-ion locked by bayonet fittings, and therefore securely connected to rechargeable battery. All settings are carried out using the cursor the analyzer box. This prevents unintentional removal, avoiding button. The presentation of the measurement values takes place false measurements. via the colour graphic display. Thanks to the internal memory, testo 350 – Flue gas measurement at the highest level, measurement data can be transferred from the analyzer box to the control unit. If required by the measurement, several thanks to: analyzer boxes can conveniently be operated and controlled Easily accessible service opening The service opening in the underside of the instrument allows using one control unit very easy access to all relevant service and wearing parts such as pumps and filters, which can then be quickly cleaned and/or The advantages of the testo 350 control unit: Operation of the analyzer box and transfer of the measurement exchanged on site.

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OIL&GAS The advantages: - Reduction of instrument unavailability due to service times.

- Cost savings due to instrument maintenance and/or exchange and cleaning of wearing parts by the user.

- Immediate access to all relevant wearing parts

- The instrument can also be safely used in dusty or dirty atmospheres Further advantages...

Diagnosis function – integrated and intelligent The testo 350 has a number of instrument diagnosis functions.

Error reports are issued in clear text, and are thus easily understandable. The current status of the flue gas analyzer is constantly displayed. This guarantees: - Low downtimes thanks to early warning reports, for example when gas sensors are spent.

- No false measurements due to faulty instrument components.

Easy exchange of the gas sensors The gas sensors are pre-calibrated and can be exchanged, - Better planning of measurement work replaced or extended by further measurement parameters without - More reliability in emission measurement and up-to-date information on the instrument status. test gas – if necessary directly at the measurement site.

- No more long service times Automatic zeroing of the pressure sensor -Flexible extension of the testo 350 by further gas measurement This option allows volume and mass flow velocity to be measured parameters when applications or regulations change. without supervision over a longer period of time and parallel to the - A report is immediately issued when the NO sensor filter is used up. Then only the filter needs to be changed, and no longer the emission measurement. The pressure sensor is automatically zeroed at regular intervals. This avoids the typical drift of the whole NO sensor. pressure sensor when ambient conditions change.

Automatically monitored condensate trap The automatic monitoring of filling level reports when the Gas sensor zeroing condensate containerneeds to be emptied, and a few minutes after When the instrument is switched on, or manually if needed, the gas the report, the measurement gas pump is automatically stopped. sensors are zeroed with ambient air. In the testo 350, this This provides the highest protection of the analyzer box and the procedure is already completed in 30 seconds. This means that fast availability with tested and zeroed gas sensors is always gas sensors from damage by condensate entry. guaranted.

External cooling loop Closed cooling loops isolate the instrument electronics and GLOBAL – TEST EOOD sensors from the ambient air. The interior of the instrument is 1408 Sofia, Janko Zabunov str., bl. 3, ent. B, P.O.Box 21 cooled via a heat exchanger and therefore does not come into tel. (02) 953 07 96 ; (02) 953 29 56 contact with dirty or aggressive ambient air. fax (02) 952 51 95 e-mail: office@global-test.eu - Damage to the internal electronics are thus effectively prevented. www.global-test.eu Thermally separated sensor chamber The sensor chamber is thermally separated from the other instrument components. This reduces possible sensor drifts caused by thermal influences. This allows the maximum reliability pf the measuring instrument to be achieved.

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OIL&GAS

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MINING

MINPROEKT was established on January 1, 1956 as a mining and industrial design organisation structured to provide a scientific and technological basis for the coal sector of the country's energy supply system. In a short time after its establishment MINPROEKT became a highly specialized research and design institute for the coal sector. The existing underground coal mines at that time were only small-scale coal-producing mines with depleting resources, unable to meet the rapidly growing demands for coal of the power plants and heavy-industry enterprises that were being built.

This situation necessitated MINPROEKT to start designing the construction of new underground coal mines in the first years of its existence. The first projects from this period were the underground coal mines Iv. Garvanov, Marshall Tolbuhin (Bela Voda), and D. Blagoev in the Pernik coal basin.

The first mines in the Pernik, Bobov Dol, Maritsa-West, Balkan, Black Sea, Kyustendil, Sofia, and Pirin coal basins were constructed based on our designs.

The pilot-scale resource projects in the Maritsa-East lignite coal basin were jointly developed through international cooperation with mining institutes and companies from Ukraine, Russia and Germany, as well as the commissioning of the mines Troyanovo 1, 2 & 3, and Briketna Fabrika (Coal Briquetting Plant).

New underground mines were constructed until 1978 in the Maritsa-West coal basin based on MINPROEKT's designs – Novi Rudnitsi (New Mines), Nadezhda, Hr. Smirnensky, Minyor, and Gita Gospodinova. The designing of the largest mine in the country – the Zdravets colliery – began after the energy crisis of 1975, for an annual throughput of 2.4 million tonnes, and the construction began in 1979.

The best available technology at that time was used for both the mine construction and operation, allowing for quick commissioning of the equipment and achievement of the design parameters. The mine was fully mechanized with the design of coal mining complexes. The construction of the underground workings was 95 percent mechanized, using Continuous Miners (mining machines) and auxiliary equipment. Rubber belt conveyors were applied to the handling of coal from the mine to the coal treatment plant, and monorails with diesel-powered locomotives were designed for the transport of men, equipment and materials from the surface to the work areas and back.

The mechanized coal mining for the whole Maritsa-West coal basin reached 95 percent with the significant contribution of MINPROEKT. The prepared structural designs were used for the redesign of the OMKTM and OKP mechanized complexes in order to suit the specific mining conditions of the mines in the coal basin.

The following coal mines: Minyor, Mlamolovo, Hr. Botev, Iv. Rusev, and Babino were constructed and commissioned based on MINPROEKT's designs, in 1954, 1960, 1962, 1968, and in 1976 respectively, in the Bobov Dol coal basin.

The highly varied dip angles of the coal seams in the basin – from 0 to 90 degrees, and thicknesses ranging from 0.8 to 6.0 meters or more, as well as other mining and geological conditions necessitated the use of various schemes of accessing and development of the mining fields, and selecting the appropriate technology for each mine.

The design and construction of the Babino mine grew into the design of a much larger Bobov Dol – United mine, which included all the existing at that time local mines and mines under 30

construction. The MINPROEKT's designs included appropriate technical and technological solutions in line with recent trends in the global coal mining industry and the knowledge gained about the local mining and geological conditions.

During the period 1958 - 1964 MINPROEKT prepared the designs for the upgrade and expansion of the following mines in the Balkan coal basin: Kachulka, Devina, Tvarditsa, and Lev, as well as the designs for the construction of two new mines Sheshkingrad and Paisii.

One of the largest facilities constructed based on MINPROEKT's designs is the coal cableway in the Balkan basin, with a total length of 45.6 km from the mines to the coal treatment plant, having a route passing through complex mountainous topography.

MINPROEKT's designs were used to solve the complex issue of finding the most efficient means of transporting the coal from the Svoge, Bobov Dol and Pirin coal basins – constructing a total of 27.4 km of coal cableways. Additional 39.0 km of ore cableways were designed and constructed, as well as four (4) passenger cableways, and a 1000-m long underground cableway for the transport of men was designed and constructed at the Hr. Smirnenski mine, part of the Marbas Mines.

The following mines were constructed in the Black Sea coal basin based on our designs: D. Blagoev & Stoyan Seimenliiski in 1975, and Cherno More mine in 1989. The latter was commissioned in 1999.

During the period 1955 – 1979 the following underground mines were constructed and commissioned based on MINPROEKT's designs: Oranovo mine – in 1971, Pirin coal basin; Bistritsa mine ​– in 1955, Kyustendil coal basin; Chervena Yabalka 2 mine in the Svoge anthracite coal basin, along with designs for the upgrade and expansion of the existing local coal mining facilities.

MINPROEKT also prepared the designs for the construction of many ore mines near the towns of Madan, Madzharovo, Kardzhali, Burgas, etc., for example the Stahanov, Cherveno Zname, Meden Rid, Propada, Mladenovo, Bardtseto, and Kremikovtsi mines.

By the end of 1980s, MINPROEKT had extended its activities to include the design of facilities for the production of aggregates, and design of quarries with crushing and screening equipment – to meet the demand for aggregates by various industrial enterprises and cement plants.

MINPROEKT have developed original designs for the global mining industry and prepared methodological guidelines on slope angles and dimensions for open pit mines, which were used for the upgrade, expansion and consolidation of the mines in the MaritsaEast lignite basin. A modern system for managing the quality of lignite coal mining was introduced. MINPROEKT's design philosophy was focused on keeping the potential of the three coal mines at minimal long-term costs, and staying ahead of the needs of both existing and new consumers.

MINPROEKT played an important role in the development of the open pit mines in the Sofia coal basin – Chukurovo, Beli Breg, and Stanyantsi. The specialists of MINPROEKT, being well aware of the specific and difficult mining conditions in the region, prepared all the basic and detailed coal mining designs. energyandecology.com

Issue 1 February 2017

MINING MINPROEKT carried out the design work and feasibility study for the construction of a new underground mine as part of the development and mining of the Dobrudzha coalfield. Complex geological and geotechnical conditions are typical for this coalfield, therefore, the designs include state-of-the-art technologies and methods for the development of the mine workings and performance of the mining operations, which almost have no parallel in the global mining practice.

In the engineering field, MINPROEKT's specialist units have built and introduced machines and equipment to be used in the mining, preparatory and auxiliary operations in underground mines. We have designed materials handling systems for horizontal conveyance and hoisting: belt and chain conveyors, shaft cages, and auxiliary equipment for the mechanical wagon exchange at mine yard hoisting shafts.

MINPROEKT have been working on coal treatment technologies since 1962, participating with design and research projects to improve the operational performance of the following process plants: Thompson, Bobov Dol, Pernik, and Tvarditsa, as well as Briquette Production – town of Galabovo. The improvements include better coal treatment, a higher degree of mechanization, and automation of main and auxiliary processes.

We consider the specific geological and geotechnical conditions in the designs that we prepare for each mine in order to ensure occupational health and safety, as well as the most appropriate underground construction and mining technologies. We have proposed a solution to many serious issues related to fighting mine fires, dust, methane emissions, sudden coal and gas outbursts, noise and vibrations – mainly in underground mines and process plants.

Certain measures and activities have been developed based on systematic observation, research and analysis, which we have summarized into instructions for identification and assessment of hazards and risks in mines. We have built laboratory facilities that have received state accreditation for testing of explosives, equipment and protection systems intended for use in potentially explosive atmosphere, as well as coal quality management, etc.

In the environmental field, MINPROEKT has developed complex projects for protection and rehabilitation of the natural environment at operational coal mining sites in the following major areas: technical and biological rehabilitation of lands disturbed by past mining activities; treatment plants for mining, industrial and household effluent. And also the possibilities for utilization in construction of derivatives and waste products from coal mining or energy production are being investigated.

The MINPROEKT's activities in the field of occupational safety and fire protection are related entirely to the provision of applied research services to the coal industry. Based on the experience gained by its specialist units, the Institute have prepared and issued the following safety codes: Code of Safety Regulations for Underground Work in Coal Mines, Code of Safety Regulations for Open Pit Development, Code of Safety Regulations for Blasting Operations, and at the end of 2012 the Institute updated the Code of Safety Regulations for Underground Mining of Ore and Non-ore Deposits.

Presently Minproekt EAD is, on the verge of its 60th Anniversary, the only state-owned design organization in the field of energy, mining and processing. Over the years the Company has managed to keep its structure with some changes and restructuring dictated by the market and new technologies, and amendments to the Bulgarian legislation and regulations.

We have been certified to ISO 9001:2008 and have modern and well-organized facilities for the implementation of projects of national or international significance, doing our job with care for 31

the environment, our employees and the society.

We are the only Notified Body in the country for: Notified body for conformity assessment of explosives for civil use – to Directive 2014/28/EU - testing and certification of explosives made by manufacturers from Bulgaria, Turkey, Ukraine, Cyprus, etc.

Notified body for conformity assessment of equipment and protection systems intended for use in potentially explosive atmospheres – to Directive 2014/34/EU, with our own testing facility: Testing and certification of equipment and protection systems made by manufacturers from Bulgaria, Turkey, Ukraine, Cyprus, Russia, France, Latvia, Greece, etc.; Evaluation of repairs and explosion risk assessment for companies with potentially explosive atmospheres; Training of professionals that perform overhauls, ongoing maintenance and operation of equipment and protection systems intended for use in potentially explosive atmospheres.

Despite the significant reduction in staff resource in the years of economic crisis, and the specifics of today's market – demanding narrow specialization and high quality performance, the Company is currently employing over 100 employees, 90 percent of them having higher degrees in more than fifteen (15) engineering or economic majors: mining technologies – opencast and underground, technological discipline, structural discipline, architectural discipline, economic analyses, mechanical discipline, electrical equipment, electricity supply, automation, water and sewerage systems, hydro-engineering facilities, heating, ventilation and air conditioning, geodesy and cadastre, geology and hydrogeology, transportation engineering; and environmental protection. All engineers have full design competency certificates for investment engineering design and spatial development.

In terms of staffing Minproekt have managed to retain its skilled staff in competition with the more flexible private sector, by offering good working conditions, a wide range of benefits, staff training to acquire additional knowledge competencies, strict cmpliance with the Labor Code and regulations.

This variety of highly qualified professionals and the commitment of experienced managers within the organization makes Minproekt particularly valuable for complex design projects – from pre-investment projects and conceptual options to detailed design, drawings, consultation, and expert assessments.

Experience gained over the years, expertise with holistic approach towards issues, broad awareness, thousands of successful projects, and of course – some fixed mistakes, enable the team to provide in-depth coverage of industrial design issues: energy, coal mining, machine building, high and low construction of facilities, environmental protection, urban planning, and infrastructure.

Besides the years of experience, comprehensive archives, and staff with expert competence, Minproekt also have a licensed specialized engineering software and modern hardware. 'Only' 19 years have passed since the first drawings and diagrams were prepared in electronic format back in 1997.... Today, a new generation of specialists has been implementing world-class projects and taking part in global exchange of information with clients, companies, contractors, and suppliers from Europe, Australia, Canada, and America.

More information about "MINPROEKT" JSC www.minproekt.com energyandecology.com

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SMARTROC T45 DRILLING AT HEIGHT IN ITALY A glimpse of the first operational Atlas Copco SmartROC T45 drill rig in Italy at work at the Sibelco quarry in Robilante. pipes must have significant tensile strength. For this reason, the traditional COP 1840, which is normally found in Italian quarries, has been replaced in this case with the new COP 3060EX, which is able to drill larger holes. The machine is also fitted with COP Logic which controls the rock drill and adjusts according to the rock conditions. The rig is also equipped with an intelligent hydraulic system that sends oil only to where it is needed instead of sending it around the whole system, all the time.

SMARTROC T45 IN A BRIEF

Highway no. 20 in Colle di Tenda is more than just a feast for the eyes and soul; tucked away in these austere mountains is the Sibelco Group’s magnificent quarry. Located at an altitude of around 1,300m in the commune of Robilante (Cuneo), the quarry thrives on a highly compact, sedimentary quartzite originating from the permian/triassic period and metamorphosed in subsequent eras. The excavation process begins with essential investigative drilling to find out the quantity and, more importantly, the quality of the material. As quartzite is largely destined for the glass industry, the iron content of the best and most sought-after quartzite does not exceed 0.125. Mining is carried out through drilling and subsequent blasting. This takes place on descending terraces. The material is then transported for crushing (first with a jaw crusher and then with a cone crusher) before being sent to machinery at a height of 700m via a conveyor belt. The belt measures 2,200m in length (1,100m of which runs through tunnels) with an average slope of 28% and the capacity to transport 1,000 t/h, saving 1,000 Kw of electricity.

SmartROC T45 drill rig’s compressor runs on automatic rpm.

This means that it is always working on lowest possible rpm which requires less energy compared to previous models. The drill rig boasts a spacious and ergonomic cabin, tailored to the operator, with two multifunctional joysticks. All of the instruments are located within an arm’s reach, allowing the operator to control drilling and the instruments simultaneously. A fully option equipped machine also engages the water mist to compact the material in the hole, to prevent the holes from collapsing. Atlas Copco’s final flourish is the way it guarantees maximum coverage, even during maintenance. This is achieved via four technicians working throughout Italy and supported in routine maintenance operations by a set of authorized workshops, all duly trained by the head office.

“THIS MACHINE IS A BREAKTHROUGH” Further down there is a third crushing process as well as wet grinding, horizontal flow classification, filtration and drying of certain products. The brand new Atlas Copco SmartROC T45, fitted with a COP 3060EX drilling unit, is a world-class machine that is at the forefront of the entire quarry mining process. “This machine is a breakthrough”, according to Sibelco surveyor Massimo Isoardo. “It is used to drill to a depth of 15 to 19m and a diameter of 4 inches, usually in a vertical direction, using T51 pipes. After a couple of months’ work in the quarry, I have to say that the two most important parameters; Fuel consumption and penetration rate, have fully demonstrated that we made the right choice”. We are looking at the cream of the crop.

ASTONISHING FUEL SAVINGS “The SmartROC product is our future in terms of output and reduced fuel consumption”, adds Vincenzo Morabito, Sales Area Manager for Piedmont, Liguria, Valle d’Aosta and Lombardy for the Atlas Copco Civil Engineering, Quarries and Mining Division.

“This machine boasts 20 l/h compared with 30 l/h in machines with the old design. When you consider that the machine is used for approximately 1,000 hours per year, the saving is quite astonishing”. The new SmartROC T45 is pitted against very difficult material that is highly broken up and abrasive.

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