Energy and ecology Magazine

March 2017 issue 2

CREATING ENTREPRENEURS TO BENEFIT LOCAL COMMUNITIES KHALFAN SALIM BUSAIDY TALKS ABOUT PETROLEUM DEVELOPMENT OMAN (PDO)

contents

ENERGY 6 | Rosatom To Build Nuclear Center in Zambia 7 | ISCAR Drilling for Profit with SUMO3CHAM

ECOLOGY 16 | European Parliament adopts draft reform of carbon market 17 | Low-carbon policy 'less vital than low energy bills and security

8 | 10 rooftop solar debates to watch in 2017 10 | US nuclear operators identify $650 million efficiency savings 11 | Total Development & Simulation Environment 15 | Saudi to invest heavily on renewables

18 | Clear sustainability framework needed for advanced biofuels 19 | The UK's 2025 coal phase-out: pipe dream or a realistic road to renewables?

20 | New solar canopy provides both shade and clean energy 21 | Banks give €1 billion to build “Smart Europe”

MINING

OIL&GAS 23 | Creating entrepreneurs to benefit local communities

32 | Dust Suppression Overview

25 | Project Databank

33 | The world's top 5 highest-grade copper mines

27 | Duke Energy Plans 400-MW Expansion to Lincoln Combustion Turbine Station

34 | Global steel production is surging in 2017

27 | Wartsila to Supply two 50-MW Power Plants for UK Projects

34 | Columbus Metals gains mining lease for Tasmania's Heemskirk Tin Project 36 | World's largest gold project bulked up again

28 | Flue gas analysis – brilliantly easy: testo 350 – the first flue gas analyzer that thinks ahead 30 | Egypt's reforms make a difference

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Kristian Ruby, General Secretary at Eurelectric

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36 | 10 companies spend most looking for gold and copper

5 Dr Mohd Zamzam Jaafar, Malaysia Nuclear Power Corporation's CEO

energyandecology.com

Issue 2 March 2017

Energy

Interview: Kristian Ruby, Eurelectric New Eurelectric secretary-general Kristian Ruby talks about Europe's changing power landscape, storage, interconnections and much more The industry is waiting a long time to see clarity on this subject. Is two years an accurate timescale for completion?

This is the nature of EU process and we have a new set of uncertainties to work with, one being Brexit, which could potentially incur delays on the process here as well.

Two years is a good scenario if we have the Clean Energy Package which Eurelectric supports. If adopted within two years, that would be a good thing.

Is there a place for clean coal technology in Europe's power generation space?

Your appointment as secretary-general of Eurelectric appears timely given your background in renewables and the ongoing transition of the EU towards a cleaner energy infrastructure. What would you like to achieve in your role at Eurelectric?

I would like to contribute to ensuring that we take a balanced approach to the energy transition, where we balance environmental responsibility economic responsibility, EU legislation against the subsidiarity principle and where we balance investor incentives against investor certainty. We need to incentivize innovation in the electricity system.

Meanwhile, policymakers need to acknowledge that the utilities which own the current assets are a key part of the solution and that they are not helping the energy transition if they pull the rug on the existing assets in a way that is unsustainable and leaves these companies unable to make the necessary investment.

The European Power Plant Suppliers Association spoke enthusiastically about their role in 'facilitating' the clean energy transition, but also called for a fair price for their fossil fuel-based power. Do you think a capacity market similar to that operating in the UK could be the answer for many member state countries?

Essentially the fact that the plant owner has power readily available at any given time, that has an economic value, should be valued in the market.

Is the UK model the right one for Europe?

That's where we take a step back and say that different EU member states have different energy system configurations and different macroeconomic configurations, and hence different market failures, in a 4

sense. So rather than prescribing one model for everybody, we think there are central principles that should be respected when creating a capacity market mechanism.

They should be technology neutral, they should be open to storage, to demand side response and renewables. Another crucial principle is that they should be open to interconnection participation from assets located abroad as well, so we don't build a lot of parallel power systems and a lot of idle, unnecessary plant.

Another principle is that we think it's very important that they are market-based, and they shouldn't be destroying or distorting the energy market unnecessarily.

From your experience in your short time in this role as an advocate, do you think your views are being heard and will those principles be applied?

Our views are shared by DG Commission [for energy], so no doubt they listen. I had a visit to [EU energy and climate action commissioner] Miguel Arias CaĂąete today and communicated our views on these matters to him. It's going to be a discussion that unfolds over the next two years.

There's going to be a wide variety of views.

It's no secret that this is a divisive issue amongst member states and within the sector.

There are those that think an energy market approach is the way to go. In Eurelectric we endorse a more diverse position or heterogeneous approach, in that we see the business case for utilities emerge from different revenue sources, one being from energy market only, another from capacity mechanism and a third being revenues from ancillary services markets and on top of regulated income from distribution.

There is a place for clean coal technology in Europe today, as we have significant amounts of coal providing baseload in Europe. But we have to be clear. We are moving towards decarbonization by 2050 and there will be implications for coal-based assets. Unless we find viable solutions, such as carbon capture and storage, to handle emissions, coal is going to have an increasingly difficult time.

Is it realistic to expect decarbonization targets to be met when many European countries are still dependent on coal?

The electricity industry in Europe has committed to this as its objective, and it was reconfirmed most recently in the ETS discussions. We are quite clear on that, but it will not be easy and we need to basically think hard on how we do this transition in the best possible and most economical way.

There appears to be some resistance as to the environmental credentials of biomass power. Would you share those concerns, and do you think biomass can be important in the transition to cleaner energy?

Basically we think that biomass is part of the solution, provided it lives up to fundamental sustainability criteria. It is very clear that if you just burn a lot of forests that will add emissions to the atmosphere. This won't help the transition. If you add it in a sustainable way, biomass can be part of the solution.A question we are studying is how many countries can take the biomass conversion road to decarbonization - I know they are doing it in Denmark and it's interesting to see how they reduce emissions by switching, but will this be a viable solution for baseload in Poland and Germany? I have doubts that it would work on a global level.

energyandecology.com

Issue 2 March 2017

Energy

Malaysia’s Nuclear Pause Malaysia Nuclear Power Corporation's CEO talks about nuclear sector's challenges in Asia

Dr Mohd Zamzam Jaafar admits winning public consent has been harder after Fukushima.

The nuclear industry has been shaken with Taiwan's and Vietnam's declarations to ditch future nuclear energy plans.

This first installment is an interview with Dr. Mohd Zamzam Jaafar, Chief Executive Officer of the Malaysia Nuclear Power Corporation.

What is the role of nuclear energy in today’s global energy mix?

Nuclear is an important base load power generation source as demonstrated in many countries with nuclear power plants in operation.

As part of its nuclear re-start program, Japan explicitly recognises this role as do many nuclear electricity advocates in USA and Europe in pursuit of a more diversified energy mix for electricity generation.

In addition, nuclear is acknowledged as a proven low carbon power source and can play a major role to meet the Paris Agreement requirements with respect to greenhouse gas emission and climate change concerns.

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How does nuclear power drive economic development?

Nuclear power provides reliable and continuous electricity supply in countries with NPPs in operation.

This is an important feature valued by customers and investors who rely on affordable 24/7 power supply.

With expansion of sustained commercial activities, national economic development can be assured creating jobs and better standard of living for the people.

How is the recent development in Vietnam projects impact the global view of nuclear energy in ASEAN? It is too early to assess the impact of Vietnam decision to stop its nuclear power program in ASEAN. The Nuclear Energy Cooperation-Sub-Sector Network (NECSSN), a program under the ASEAN Ministers of Energy Meeting (AMEM) still continues with Malaysia as the current Chairman. NPA 2017 is listed as an activity under ASEAN NEC-SSN and Malaysia is still pursuing the nuclear option.

greatest challenges for new nuclear build from the policy and infrastructure development perspective?

The 3 main challenges are: a) The position of the Government with respect to National Position under the 19 nuclear infrastructure issues is still uncertain in ASEAN countries pursuing the nuclear option.

This is somewhat related to the following bullet. b) Winning public buy-in after the Fukushima Dai-ichi accident with respect to nuclear safety and what to do with radioactive materials and used nuclear fuels; as well as c) Economic competitiveness of nuclear electricity compared to other energy sources including the more popular renewable energy, as a result of high upfront investment cost, as demonstrated by on-going NPP projects in Western Europe and USA.

What has your experience been the 3 energyandecology.com

Issue 2 March 2017

Energy

Rosatom To Build Nuclear Center in Zambia Russia and Zambia are breaking new ground by signing a framework cooperation agreement on the construction of the Center for Nuclear Sciences and Technology in Zambia.

Russia and Zambia are breaking new ground by signing a framework cooperation agreement on the construction of the Center for Nuclear Sciences and Technology in Zambia. The document was signed by Rosatom CEO Alexei Likhachov on the Russian part and Simon Miti, Deputy Head of Zambia's Office of the President, on the Zambian part. The agreement provides for the center to be built around a multipurpose 10 MW VVER reactor.

The center will include laboratories and test rooms for different research programs.

According to Rosatom, the center allows for doing research in radiobiology and fabrication of radioisotopes to be widely used in cancer diagnostics and treatment.

Another application area of nuclear technology will be irradiation of foodstuffs and agricultural products to treat them against pests, extend shelf life and set the scene for an increase in Zambia's agricultural exports and development of the country's livestock breeding.

Besides, the center will be an important means of training local talent to work in Zambia’s nuclear industry and deliver national research programs.

“We entered the signing phase within a very short term,” noted Rosatom CEO Alexei

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Likhachov. “This is just the beginning of our sustained efforts in creating a new industry in Zambia. We are in for a great deal of joint research. The reactor will be a driver of all those projects, and my hope is that it will take Zambia to a new level in technology.

Besides, this is a very good commercial project.” He noted that nuclear industry had a very long life cycle. “Today, we are setting goals for centuries ahead. My sincere hope is that the coming centuries will see progress of our commercial projects and bring handsome profits to the stakeholders.

Russia is ready to give you support and share its best technologies and practices at every step,” Rosatom CEO added.

“This is a very important step for us all. First, it kicks off a process of helping us in national industrialization based on nuclear technology. We are grateful to the Russian government and Rosatom for offering this opportunity. Second, it will help us deal with one of the key challenges. We are confronted with a shortage of water and depend on this resource in power generation. Last year our economy faced a 50% slump for this reason. With the climate change continuing, we are not certain to avoid such problems in the future. We need to improve the country’s energy mix to secure sustainable power supply for the

next 15 years,” said Simon Miti. Apart from staff training, he noted, Rosatom will help Zambia establish a legal framework for peaceful uses of nuclear energy and improve public acceptance of the nuclear.

“We have started this work thanks to concerted efforts of our delegations,” he said.

Rosatom has built over 120 research reactors across the globe, with over 20 of them outside Russia, particularly in China, Egypt, Germany, Czech Republic, etc. In March 2016, Russia and Bolivia agreed to construct a nuclear science and technology center that would comprise a research reactor. The framework agreement provides for the center to be built in El Alto. It will feature a multi-purpose gamma irradiation unit, a pool-type pressurized water research reactor, a cyclotron, an engineering department and several research laboratories. The new research and development center will be Bolivia's first step into the world of nuclear technology and its first attempt at applying it in science, medicine, industry and agriculture.

energyandecology.com

Issue 2 March 2017

Energy

ISCAR Drilling for Profit with SUMO3CHAM The entire machining process becomes much easier as the cutting forces are spread across 3 cutting edges, the drilling process is more stable and the penetration into the part's material is more balanced. Thus, users can work up to twice as 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.

The global metalworking industry is driven by the relentless progress of highend 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.

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 launch of SUMO3CHAM – an advanced three flute indexable drill. The innovative design of the SUMO3CHAM raises users manufacturing productivity to new levels by reducing machining cycle times by up to 50% when compared to the conventional two flute drills.

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.

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 selfcentering 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.

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'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.

"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, roundness and enhanced productivity.

ISCAR Bulgaria is located in Kazanlak to serve the Bulgarian metal working industries. ISCAR Bulgaria is registered with the Bulgarian Chamber of Commerce and Industry and abides by its standards of conduct. The trained staff of

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experienced sales engineers at ISCAR Bulgaria is ready to provide support, testing, demonstrations, consultations and quotations for ISCAR tools — the world’s finest metal cutting tools.

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.

For more information: ISCAR Bulgaria. Starozagorska 1, Str. Floor 1, Office G, 6100 Kazanlak Tel/Fax:+359 431 62557; Tel: +359 431 64361 e-mail: apostolov@iscar.bg www.iscar.bg

energyandecology.com

Issue 2 March 2017

Energy

10 rooftop solar debates to watch in 2017 Policy debates over rooftop solar compensation continue to evolve into more sophisticated conversations about electricity rate design. specifically, rooftop solar. Once completed, regulators planned to use the collected data to make a decision on future compensation rates for distributed solar During the course of 2016, Arizona utilities Arizona Public Service Co. and UniSource Energy Services filed rate cases proposing mandatory residential demand charges for all or parts of their customer bases.

Residential demand charges bill customers based on their peak monthly usage, and has historically been used primarily for large energy users like commercial and industrial customers. Solar advocates have condemned the proposals, saying they were too complex for the average ratepayer and could essentially negate any savings from net metering policies.

The explosive growth of the rooftop solar market over the last several years may be slowing down, but the policy debates are not.

If the numbers show us anything, it's that more and more states are tackling complex proceedings over the proper compensation for distributed generation — particularly rooftop solar.

In 2015, there were 175 debates over rooftop solar policies in the U.S., according to the North Carolina Clean Energy Technology Center (NC CETC). In 2016, there were 212. And this year, those numbers are expected to rise yet again, according to Autumn Proudlove, a senior solar analyst at the NC CETC. These policy discussions have largely evolved from utilities requesting quick fixes to retail rate net metering policies to more complex and comprehensive debates over electricity rate reform.

“A lot of the conversations have evolved from simple discussions about net metering, for example, to broader conversations about rate designs where concerns [are] beyond the solar industry,” Benjamin Inskeep, an EQ Research analyst specializing in solar policy, told Utility Dive.

“These conversations are moving beyond industry specific conversations to a conversation to what the future utility looks like and how distributed energy resources will fit in.”

But the animosity between distributed solar companies and utilities from years past continues to simmer as they fight over rate reforms and appropriate compensation for rooftop solar.

Many of these policy debates are 8

transpiring in familiar battlegrounds like Nevada and Arizona. But states in other regions, such as the Southeast and Midwest​, appear ripe for precedent-setting decisions on solar policy. Utility Dive takes a look at the ten states that will host the most heated policy debates over rooftop solar in 2017.

1. Arizona Arizona is the first state many observers think of when it comes to rancorous debates over rooftop solar — and this year promises to be no different.

“I think that there's a sort of cyclical basis where Arizona returns as the major policy [bastion] to watch, and once again at the beginning of this year, it will continue to be that,” said Cory Honeyman, a senior solar analyst at GTM Research.

Ever since 2013, Arizona utilities, regulators and solar companies have engaged in an on-and-off policy war over the state's net metering program, which credited solar customers at the retail rate for excess energy sent to the grid.

The story was a familiar one: Utilities wanted the existing net metering policy gone or reduce the retail rate of net metering to eliminate “cost-shifting” — the claim that rooftop solar users don’t pay their fair share of grid upkeep costs. Solar companies, on the other hand, say regulators and utilities fail to recognize the full benefits of rooftop solar — including positive environmental impacts and the deferral of costly infrastructure upgrades.

To solve those problems, the Arizona Corporation Commission opened a value of solar docket in late 2015 to fully analyze distributed generation — and more

Meanwhile, another Arizona utility, Tucson Electric Power, requested to cut down the retail rate for net metering in a pending rate case. The ACC deferred a decision on those rate reform requests until after the conclusion of the VOS docket, which came at the end of the year.

In the VOS decision, the ACC chose to eliminate the state's retail rate net metering policy in favor of an avoided cost rate for rooftop solar generation. Solar advocates said the reduction will trim about 30% from the compensation value, though regulators said they didn't want the rates to fall more than 10% in any given year.

Those rates will be decided in individual rate cases, the regulators said, including the debate over residential demand charges. That particular rate design has popped up in proposals all over the country, but has for the most part yet to see success in regulatory decisions. Any decision coming out of Arizona could set a precedent that extends beyond state borders.

With three pending rate cases this year, the stage is set in Arizona for yet another showdown over rooftop solar compensation.

2. Illinois Illinois makes our list of rooftop solar debates to watch for the first time this year.

The state's nascent solar market has not received much attention until Exelon helped push through a massive energy bill at the end of 2016.

Buried in the details are a slew of initiatives aimed at growing solar investments in the state, including rooftop solar.

energyandecology.com

Issue 2 March 2017

Energy The Future Energy Jobs bill garnered nationwide attention over the bailout of Exelon’s two struggling nuclear plants: Quad Cities and Clinton. But the solar industry can also count a victory since part of the bill revised its renewable portfolio standard to increase carve-outs for wind and solar. The new RPS requires a minimum of 3,000 MW of solar and 1,300 MW of wind to be constructed by 2030.

“Most markets are thinking about slowing down the allocation of incentives [and] most of the debates are not how we should incentivize rooftop solar but how we should properly value it,” Honeyman said. “So Illinois can definitely stand on its own in 2017 as being the lone emerging state market where you have a robust incentive program targeting rooftop solar.”

Even though Illinois's rooftop solar market is set to take off this year thanks to the legislation, debates over the incentives, particularly the Adjustable Block Program, could set the stage for a policy battle similar to ones taking place in Massachusetts and New Hampshire.

Under the legislation, more than half of the new solar capacity must come from distributed solar, community solar and arrays built on brownfields. In addition to the capacity requirements, the bill also boosted incentives for renewable energy.

Part of those incentives include an Adjustable Block program designed to procure renewable energy credits from distributed energy resources, particularly solar. Under the program, each block of credits is assigned a certain purchase price and a nameplate capacity; beyond that, the details are fuzzy.

“There's still lingering questions on how the Adjustable [Block] program will look like and what the initial additives will be so that's less so a debate over rate design and net metering,” Honeyman said. But “it’s the biggest incentive program for distributed solar [to] get approved since the Megawatt Block Incentive programs got approved in New York.”

While the state’s solar profile isn’t as ideal as Arizona and California, analysts told Utility Dive that 2017 is the year where the program and incentives laid out in the legislation will start to accelerate.

“There’s something in there for the entire industry and appropriately generating a lot of interest,” Inskeep said. Part of what makes Illinois such an ideal market to break into is “market development that fosters all kind of technology. You have some sort of energy choice in Illinois and third party power purchase agreements are legal and good net metering foundations. I think you have the right market policy positions in there."

3. New Hampshire 9

New Hampshire is another nascent solar market under scrutiny since legislation passed last year directed regulators to craft a successor tariff to its net metering policy.

Though currently ranked near the middle of states for total installed solar capacity, the state has experienced strong growth in the residential sector, priming it for a policy debate over retail rate net metering.

“As technology continues to get cheaper and popularity continues to get extremely high, I think the outlook is pretty clear [that] we’re definitely moving toward a more distributed energy economy where rooftop solar is going to be a large part of that,” Inskeep said.

That appears to be what is happening in this state. Since the Public Utilities Commission opened its docket to find a successor tariff in early 2016, several familiar policy proposals have been filed to address costshift arguments while keeping the fledgling solar industry afloat.Some of those proposals include residential demand charges, which have sparked controversy states like Arizona and Illinois. Solar advocates say that particular rate reform — where customers pay an added fee based on the period of highest consumption or their usage during a pre-defined peak period — essentially negates any savings from net metering.

4. Massachusetts Massachusetts is bullish on offshore wind and energy storage thanks to mandates encouraging those resources. But it has a history of failing to craft a permanent solution for its beleaguered net metering and solar renewable energy credit (SREC) programs. This year may be different.

Last year, solar companies were squeezed as utilities hit aggregate net metering caps set on their peak loads, forcing lawmakers to come up with a quick solution to relieve some of the financial pressure.

5. South Carolina The Southeast has been one of the last U.S. regions to craft policies that foster vibrant distributed solar markets, but South Carolina is one of the states leading the charge.

In 2014, the state’s General Assembly passed a bill that mapped out how policymakers would handle net metering, solar’s value and third-party ownership.

Under that legislation, utility regulators established a retail rate net metering program until 2020, when it will be up for review. But the response from utilities has been predictably mixed.

after lawmakers directed regulators to compose a successor tariff for its net metering policy.

While the state’s net metering customers only number in the hundreds, regulators and utilities are seeking to get ahead of problems that states with higher distributed solar penetrations have faced.

7. Utah Utah’s battle over net metering began in 2015 when utility regulators ordered utility Rocky Mountain Power to conduct a study over the costs and benefits of residential net metering. In late 2016, RMP found that rooftop solar customers underpay their actual cost-of-service by $400 per year, amounting to a cost-shift of $6.5 million annually. To solve this perceived cost-shift, RMP proposed to lower payments and add monthly fixed fees to the tune of $15.

8. Maine In 2015, a study came out valuing solar at $0.33/kWh, a rate substantially higher than its electrical retail price of $0.0913/kWh, suggesting that solar was significantly undervalued in Maine.

Last year, analysts told Utility Dive that Maine might move away from its net metering policy as lawmakers tried to push through a bill that would set up a marketbased approach to compensating rooftop solar users for their excess energy. Under the bill, residential solar owners would participate in a declining block program with a credit would gradually step down with different tranches.

9. Nevada Nevada’s decision to gut its net metering policy and exclude a grandfathering clause for roughly 30,000 existing solar customers sparked a storm of controversy in 2016.

10. Hawaii No list of solar debates to watch would be complete without Hawaii. The most advanced U.S. market in terms of rooftop solar penetration, Hawaii eliminated its net metering policy in 2015 and replaced it with two interim tariffs, with caps on both, until regulators could draft a more permanent solution.

More customers preferred the CGS option, which led the industry to hit the caps toward the end of 2016 across Hawaii. The CSS option requires some sort of energy storage, which can come with a hefty price tag of roughly $44,000.

6. Arkansas Arkansas is another Southeastern solar market that, until recently, flew under the radar. But in 2015, the state entered a familiar rooftop solar policy battleground energyandecology.com

Issue 2 March 2017

Energy

US nuclear operators identify $650 million efficiency savings said.

SMR Smart was formed in early 2016 to support SMR development and build U.S. export potential. Members include Areva, Bechtel, BWXT, Dominion, Duke Energy, E n e r g y N o r t h w e s t , F l u o r, H o l t e c International, NuScale Power, Ontario Power Generation, PSEG Nuclear, Southern Nuclear, TVA, and UAMPS. The federal government should also introduce an SMR commercial deployment program which would provide a combination of post-2020 Production Tax Credits (PTCs), Power Purchase Agreements (PPAs) and loan guarantees for SMR plants, the industry group said.

The U.S. nuclear industry has identified $650 million in potential savings since the Nuclear Energy Institute (NEIs) launched its Delivering the Nuclear Promise (DNP) program a year ago, Maria Korsnick, NEI President.

The DNP program aims to cut industrywide operating costs by 30% by 2018. Average nuclear generation costs rose by 26% between 2002 and 2015 and efficiency gains are needed to improve competitiveness against gas-fired production and rising renewable energy capacity.

Exelon partners with UK new build project Exelon Generation, the US's largest nuclear fleet operator, is to provide engineering, maintenance and operations expertise to Horizon, the consortium planning to build a 2.7 GW power station in Wales, UK. Hitachi-owned Horizon plans to build two advanced boiling water reactors at Wylfa Newydd, Wales by the mid-2020s and plans a further 2.7 GW of capacity at Oldbury, West England.

"With its proven expertise and decades of experience, Exelon will be a vital part of our success. Alongside our own expert people, they will form a team that will ready us to successfully run Wylfa Newydd even as we continue to progress towards its construction," Duncan Hawthorne, Chief Executive Officer of Horizon, said.

“We look forward to expanding our presence in the UK and leveraging Exelon’s proven nuclear management model and exceptional workforce to advance operational excellence around the globe,” Mike Pacilio, Exelon Generation's Chief 10

Operating Officer, said.

Exelon Generation operates 22 reactors at 13 nuclear facilities in Illinois, Pennsylvania, New York, Maryland and New Jersey, representing a total capacity of 19.5 GW. Eight of Exelon’s nuclear facilities use boiling water reactors.

SMR group urges congress to provide loans, tax credits from 2018 U.S. Congress should allocate new funding from fiscal 2018 for public-private partnerships which support the development and supply chain for Small Modular Reactors (SMRs), industry group SMR Smart said in a policy document published February 14.

The SMR Licensing Technical Support (LTS) program should be expanded to include design and engineering, including design finalization and regulatory approval of SMR technologies and facilities, it said.

Last month, NuScale became the first SMR developer to submit its full Design Certification Application (DCA) to the Nuclear Regulatory Commission (NRC). In 2013, the Department of Energy (DoE) awarded NuScale up to $217 million over five years through a cost share program, to support the development, licensing and commercialization of its technology.

Extension of PTCs beyond the 2020 expiration date would stimulate SMR deployment and these should be transferable from public owners to nonpublic project participants, it said.

"PPAs should be “scored” such that the federal budgets are impacted annually instead of the entire PPA value being “scored” in the year the PPA is entered," the group said.

Loan guarantees would support design and construction of SMR facilities as well as SMR component manufacturing facilities, it said.

In addition, an SMR Investment Tax Credit (ITC) for manufacturing facilities would help build a robust U.S. supply chain for domestic SMR plants and export of USmade components, SMR Smart said.

Funding should also be provided to the D OE to s u p p o r t i n n o v a ti v e S M R applications such as load following, power for industrial process heat, desalination or water purification, and cogeneration applications, it said.

The DOE and Department of Defence should also work to gather to develop SMRpowered microgrids, capable of operating independent of the main transmission network, to improve reliability and resiliency for selected federal facilities, the industry group said.

"The SMR LTS program should be increased to continue providing 50-50 cost share for two or more SMR designs and several initial facilities, and be available through 2025," SMR Smart said.

"This program funding should be structured to accommodate participants that are following diverse regulatory approaches and pathways to market development," it energyandecology.com

Issue 2 March 2017

Energy

Total Development & Simulation Environment What is the purpose of these nuclear power plant simulators?

There are different applications for nuclear power plant (NPP) simulators.

NPP simulators are most widely used for operator training. As you can imagine, when an operator is running a valuable asset, like an NPP, where human error could have catastrophic consequences, it is imperative that the operations personnel are the best of the best.

Michael Chatlani assumed responsibility for L-3 MAPPS' Power Systems and Simulation business's sales in 1996, and was named vice president, marketing & sales in 2005.

He and his team grew sales and market pres- ence, establishing the com- pany as the world leader in the delivery of nuclear power plant simulators. The glob- ally envied Orchid® brand— the software that drives L-3 MAPPS simulators—was also developed under Mr. Chatlani's leadership.

He is supported by sales profes- sionals, a proposal develop- ment team and several sales representatives globally.

Can you tell us a bit about yourself and the company?

I have been in the energy sector for 28 years. At first, I managed energy control system projects. I have also managed power plant simulator projects (both fossil and nuclear), and then moved into marketing and sales for power plant simulators. I am originally from Bermuda and graduated from Montreal's Concordia University with a bachelor of mechanical engineering degree, control systems option. I have had the great fortune of working at two fantastic companies over the years— CAE Inc., and where I am now—L3 MAPPS, a division of L-3. L-3 acquired CAE's marine, power and space businesses in February 2005. Since then, I have served as vice president of marketing & sales for our Power Systems and Simulation business.

We have been building power plant simulators, mainly to train power plant operators, and CANDU plant computer systems since the early 1970s. Today, our power plant simulators are used by leading power plant operators around the world – from the Americas to Asia.

L-3 MAPPS is a leading supplier of highprecision nuclear power plant simulators.

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To become a senior reactor operator or reactor operator, it takes many years of intensive training. Part of this training focuses on operating the plant in all conditions. Of course, operators must be able to run the plant at normal baseload conditions, generating full power reliably and safely. But they must also be able to manage the plant when transient or abnormal or even accident conditions might occur.

To do this, operators are trained on NPP simulators that reproduce the plant's actual control room environment. They use software that produces the mathematical models representing the systems of the entire NPP that provide the various conditions an operator may face. It is important for the operator to be trained in the most realistic training environment.

Instructors use a computerized instructor station to control all aspects of the simulation and to provide post- training analysis and debriefing to the students.

Many of today's simulators are so advanced that they are also used to support plant engineering tasks, like analysing the impact of plant equipment changes before they are committed to the plant and improving the plant operating procedures, among others.

NPPsimulationhascomealongwayover theyears. Today, some NPPresearchers anddesignersarealsousingour simulators to check their designs.

In your view, why has L-3 MAPPS become successful in this niche field?

In a word: focus! We always saw ourselves as a company that is not simply providing training devices, but making an important contribution to nuclear safety. We have very talented people working on our projects, a disciplined management team that focuses on our core strengths, a strong commitment to constantly evolving our technology, and the most robust, user- friendly technology in the market.

significant customer base that values L-3 MAPPS' reliability and also knows that we listen carefully to our customers to ensure that we are meeting their challenging needs. The philosophy here is simple. If we take care of our customers, they will appreciate the value we bring to their projects, leading to repeat business and a reputation for excellence.

You mentioned severe accident simulation earlier. How has Orchid® evolved since the Fukushima Daiichi reactor event to ensure operators are fully up to standard?

The Orchid® simulation environment is designed to communicate with engineering-grade models that incorporate degraded reactor core conditions that result in fuel melting, including cladding oxidation and hydrogen generation, vessel failure, containment failure, fission product release and loss of water inventory in the spent fuel pool. PostFukushima, we have delivered several simulators with these capabilities by connecting the Electric Power Research Institute's (EPRI) Modular Accident Analysis Program (MAAP5*) to the simulators and running the MAAP5 models in real time. MAAP5 is a software program that performs severe accident analysis for nuclear power plants, including assessments of core damage and radiological transport. The simulator models include support for the connection of external power and water sources, part of the diverse and flexible (FLEX) response strategy developed by industry to address challenges experienced at the Fukushima Daiichi power station following the earthquake and tsunami on March 11, 2011.

While demand for this kind of severe accident simulation has increased following that important event in our industry, deploying such simulations was not new to us. We were very fortunate to have delivered MAAP4, the predecessor to MAAP5, on a full- scale operator training simulator in 2000. Slovenia's Nuklearna elektrarna Krško challenged us in the late 1990s to integrate MAAP4 on the Krško fullscale NPP simulator and has since held regular simulator-based training courses on severe accidents and associated mitigation actions. We will always be grateful to NEK for their vision in this area.

Equally as important, L-3 MAPPS has a energyandecology.com

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Saudi to invest heavily on renewables

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Ecology

European Parliament adopts draft reform of carbon market cap and the number of free allowances.

However, lawmakers leading the reform have said the two provisions are likely to be traded away in upcoming negotiations with member states.

Bill Hemmings, aviation and shipping policy director at Transport & Environment, said, “This crossparty proposal will end the anomaly of shipping being the only sector in Europe not contributing to the EU’s 2030 emissions reduction target.

“EU governments must follow Parliament’s lead and agree that ship CO2 emissions must go in the EU ETS if the International Maritime Organisation (IMO) does not act.”

The European Union’s emission trading system (ETS), a cap-and-trade permit system to regulate industry pollution, has suffered from excess supply since the financial crisis, depressing its prices and heightening the need for reform.

But politicians and EU nations are divided over how best to fix the complex system, with industry and environment groups lobbying hard on opposing sides. Reform efforts have also been overshadowed by Britain’s decision to quit the bloc, raising fears it would also leave the EU’s scheme, hammering prices.

The draft, adopted by 379-263 votes, rejected a more environmentally ambitious proposal for the faster removal of surplus carbon permits from the ETS – sparking criticism from climate campaigners.

Instead, it sticks with the EU executive’s proposal for the cap on emissions to fall by 2.2% per year – the so-called linear reduction factor – until at least 2024.

The Climate Action Network said it “betrayed the spirit” of the Paris accord to slow global warming, while Dutch green lawmaker Bas Eickhout said provisions to protect industry showed “the lobbyists have won out in the end.”

The Paris Agreement caps global warming at no more than two degrees above industrial levels.

Leading policymakers called it the best compromise possible in tough talks.

EU lawmakers will now enter negotiations with representatives of the bloc’s 28 governments to hammer out the final legislation.

The benchmark European carbon contract fell by about 2% following the vote, hovering 16

around €5 a tonne, but Thomson Reuters carbon analysts said the market reaction would be short-lived.

Carbon leakage The cap-and-trade system is the EU’s key tool to meet its goal of a 43% cut in greenhouse gases from industries and power plants covered by the market compared with 2005.

It aims to send a policy signal to encourage their investment in renewables and lowcarbon electricity production.

In a bid to shore up prices, the Parliament’s proposal doubles the rate at which the scheme’s Market Stability Reserve (MSR) soaks up excess allowances to 24% per year from 2019. It also cancels 800 million carbon allowances from the MSR in 2021.

To minimise the risk of industry moving abroad to escape climate regulation, the draft allows for the share of allowances auctioned to be reduced by up to 5% to cushion against the impact of a cap on overall allocations, known as the crosssectoral correction factor.

The cement industry, which some lawmakers had pushed to exclude from free allowances, will remain on the list of installations receiving handouts.

The deal drew mixed reactions from other industries. The steel, metal and chemical sectors welcomed the step towards adopting the long-awaited reforms but said they hoped for more safeguards for their competitiveness in continuing talks.

But the European Community Shipowners Associations said that global rules brokered by the IMO would be a better option.

BACKGROUND The EU's Emissions Trading System is the world’s biggest scheme for trading emissions allowances. Regulated businesses measure and report their carbon emissions, handing in one allowance for each tonne they release.

Companies can trade allowances as an incentive for them to reduce their emissions. Countries can also sell permits to the market. The European Commission has proposed a series of reforms to the ETS. Pollution credits were grossly over allocated by several countries during the 2005 initial implementation phase of the ETS, forcing down carbon prices and undermining the scheme's credibility, which prompted the EU to toughen up the system.

Carbon prices have since remained stubbornly low at under €8 a tonne.

The proposed reform proposes tightening the screw on heavy polluters by restricting the amount of pollution credits available in the period 2021-2030.

Under the Commission proposal, 57% of allocations will be auctioned by member states, the same as in the current trading period (2013-2020). They are estimated to be worth €225 billion. 43% (6.3 billion allowances) will go to industry in free allocations, worth an estimated €160 billion.

Those will be divided out, with the most efficient companies being prioritised. So the best performing companies will still get the benefit of free allowances.

The shipping industry protested its inclusion under the scheme from 2023 in the draft proposal, which also calls for reforms to tighten emission controls on aviation, including reducing the emissions energyandecology.com

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Ecology

Low-carbon policy 'less vital than low energy bills and security England] and its growing low-carbon economy.”

Hollick told the Guardian that the government had micromanaged the energy market and did not need to interfere as much. He said the government “should now allow the energy commission to move forward, to run auctions, to fill the gap and to build a properly balanced [energy system]”.

Ministers should establish a new energy commission to spur on construction of power stations because successive governments have failed to encourage enough fresh power capacity in the UK, according to a House of Lords report.

Subsidy-backed growth in renewable energy projects, such as windfarms, has deterred the construction of new conventional power plants, the economic affairs committee claimed.

The peers envisage the new energy commission would oversee auctions where all technologies, including gas power, competed for guaranteed electricity prices.

The auctions would provide the required amount of capacity and cap carbon emissions.

At present the government only allows lowcarbon power, such as windfarms and new nuclear power stations, to compete in auctions for such deals, known as contracts for difference.

The influential cross-party group of peers concluded that successive governments have got their priorities wrong on energy policy by giving priority to carbon emissions cuts – a statutory duty under the Climate Change Act – over keeping costs down and keeping the lights on.

The report has sparked an angry response.

Robert Gross, director of the centre for energy policy and technology at Imperial College, London, said: “The term ‘post truth’ has become over-used. Yet it would be possible to take all the evidence the 17

committee presents and tell a completely different story: there’s been huge success in growing renewables and reducing emissions from the power sector.”

Lord Hollick, the committee’s chair, said: “We are critical of the drift that’s taken place over the last 15 years or so, which has delivered on the decarbonisation agenda but very much at the expense of consumers paying 58% more than they were in 2003. On the affordability front we haven’t looked after consumers.”

Hollick denied the report was antirenewables. “Exactly the opposite. We see renewables very much as the way forward,” he said, arguing that more public money should go into R&D in renewables and energy storage.

The committee also urged the government to publish its plan B if the Hinkley Point C nuclear power station, which is expected to provide 7% of the UK’s electricity from 2025, is delayed or even cancelled.

Hollick said the biggest surprise during the committee’s inquiry was the “fragility” of the government’s nuclear ambitions, which envisage new nuclear reactors in Somerset, Suffolk, Anglesey and Cumbria.

The peers, who include the former chancellor Norman Lamont, and a former head of the civil service, Andrew Turnbull, said security of supply should become the key aim of energy policy, above decarbonisation and cost.

“It is imperative that the government publishes it contingency plans for how it will make up the capacity due to be provided by these plants in the event one or more does not succeed or is delayed,” the report says.

“Low-carbon but chronically unreliable electricity is not acceptable. Similarly very cheap prices at the expense of frequent shortages would be unacceptable,” the report says, which also claims fossil fuels have remained cheaper than renewable sources.

Hollick said he expected the government’s energy back-up plan to be made up largely of new gas power stations and offshore windfarms.

But Paul Massara, the former chief executive of npower who now runs the renewable energy firm North Star Solar, said the committee was simply wrong to say fossil fuels were always cheaper than renewables, and condemned the report as “backward looking”.

A spokeswoman for the Department for Business, Energy and Industrial Strategy said: “Keeping the lights on is nonnegotiable. Our top priority is making sure UK families and businesses have secure, affordable energy supplies.”

Darren Baxter, a researcher at the Institute for Public Policy Research thinktank, said: “A failure to keep the pace up with decarbonisation, as suggested in this report, would be a disaster for the north [of energyandecology.com

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Ecology

Clear sustainability framework needed for advanced biofuels to happen in the market then is a different question. Then, we need to look at what is the replacement for oil. If it is crop-based biodiesel with on average more GHG emissions than fossil diesel, this doesn’t make sense.

Laura Buffet is an expert in oil and biofuels at the Transport & Environment (T&E) NGO. Are you satisfied with the European Commission’s proposal on the post2020 use of energy in the transport sector?

Overall, we think it is a step in the right direction because the Commission is proposing to decrease the amount of crop biofuels that can be counted towards the overall renewable energy target from 7% to 3.8% in 2030. However, we would like to see more ambitious measures on that specific issue.

We are calling for a quicker phase-out of crop-based biodiesel and a complete phase-out of all crop biofuels by 2030, which means, in practice, to have a 0% crop cap in 2030. So this is how we think that the Commission proposal could be improved.

The Commission is going more in the direction of advanced biofuels, and we think these biofuels have a role to play in decarbonising the transport sector if they are done sustainably.

If they are done sustainably they can deliver significant greenhouse gas savings with very low to no negative impacts on the land.

However, we do not want to repeat the same mistakes with this new generation of biofuels, so we are calling for a strict sustainability framework for incentivising these biofuels.

Both you and the Commission are putting bioethanol and biodiesel in the same category. Why? First I think it’s important to just take a step back and think about what the current biofuels policy has driven in the EU market.

So we currently have around 80% biodiesel as part of the EU biofuels market, and most of it is crop biodiesel, which, according to the recent Globiom study commissioned by the executive is on average around 80% 18

worse for the climate than fossil diesel.

Clearly, the current biofuels policy has not driven the best solutions in the markets.

Having said that, there has been lots of debate around ILUC (Indirect Land Use Change) emissions in the past. We’ve been asking for having ILUC factors in the GHG emission calculations in the EU, to enable an ambitious reform of the EU biofuels policy in the past. But the industry, whether it is the farming industry, the bioethanol industry or the biodiesel industry did not want to have ILUC factors in place.

Therefore the EU decision makers adopted this crop cap as the way to deal with ILUC emissions from crops. And this is the tool that the Commission is proposing, as a continuation of what has already been adopted for 2020.

If you look at greenhouse gas emissions, crop biodiesel has on average the highest greenhouse gas emissions, but you also need to look at the better alternatives, and if you compare crop biofuels, whether it is crop bioethanol or crop biodiesel, to advanced biofuels from waste and residues, these advanced biofuels have much lower greenhouse gas emissions and so much higher climate benefits. It is crucial to look also at the broader picture and what are all the alternatives on the table. In that broader framework, renewable electricity is the best available and scalable option to decarbonize transport fuels.

The biofuels’ industry has strongly criticised the European Commission’s intention to phase out conventional biofuels, saying its proposal is “incredibly friendly to oil”. What is your comment on that?

Well, I think it depends on how you interpret the consequences of that proposal. Again, what the Commission proposes is how much of crop-based biofuels you can count towards a renewable target. What’s going

And then regarding advanced biofuels, the Commission is putting incentives in place to push more quantities of these biofuels, together with other fuels that are of lower emissions on average, like renewable electricity, to be included in the market. So, on the longer term, the Commission’s plan is to have more of these better alternatives, and therefore less oil being used thanks to those.

And how about the people who have invested in first-generation biofuels?

How do you convince them that an investment in advanced biofuels would be viable?

First generation biofuels have benefitted from quite a high level of public support until now, and the policy has not driven as much support for better alternatives, such as biofuels from waste and residues or renewable electricity used in transport. We had commissioned a study on the question of investments which showed for example that 95% of investments in biodiesel installations would be paid back by the end of 2017. So it’s time to shift the policy support to better alternatives.

Have you examined the impact of the crop-based biofuels’ phase-out on employment especially in EU farming?

We have examined the situation when it comes to investments that have already been done in the biofuels industry and we have been part of a research project called “Biofrontiers” on waste and residues. This project looked at the potential availability of waste and residues for biofuels and had an assessment of potential job opportunities in that area. According to the International Council on Clean Transportation, tens of thousands of permanent and construction jobs could potentially be supported via a shift toward biofuels from waste and residues in the EU. In addition, the Commission’s impact assessment concludes that a full phase-out of food-based biofuels by 2030 could lead to some direct job losses in conventional biofuel production but that a transition to advanced biofuels could also lead to the creation of new jobs. In any case, farmers would still have their land and produce food, as they did before the biofuels boom. energyandecology.com

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Ecology

The UK’s 2025 coal phase-out: pipe dream or a realistic road to renewables? move way from coal-fired power generation. Indeed, some senior Conservative party members are openly dubious that the pledge to shut down the UK’s coal power plants by 2025 is deliverable without causing major disruptions to the national grid.

Renewable energy passed a key milestone last year in the UK and implications for the government’s latest pledge to phase-out all unabated coal power stations by 2025 could be huge.

An analysis of official UK Government data

by UK-based environmental website Carbon Brief shows that in 2016 – and for the first time ever – the UK generated more electricity from wind than coal. For several days in March coal generation fell to zero for the first time since public electricity supply started in 1882, and by April, wind energy had overtaken coal for the first time.

The analysis found that wind power generated 11.5% of the UK's electricity, compared with just 9.2% for coal. Last year also saw a first for UK solar power as, in May, solar panels produced 1.38TW hours (TWh) of electricity, far exceeding the 0.89TWh produced by coal-fired power stations.

Renewable subsidies, nuclear investigations and fracking Early last year three UK coal-fired power stations were shutdown and in the November the government announced its intention to close the remaining eight coal plants by 2025. However, the pledge originally made in 2015 to close all eleven coal plants within eight years will be a daunting, if not impossible, task.

The government has already rolled back its subsidies for renewable energies, which could mean that, despite impressive performances last year, the future growth of renewables could yet be curbed. In addition, the government is facing mounting problems with the Hinkley Point C nuclear reactor project. While anticipated to meet 7% of the UK’s electricity needs over a 60year period, the earliest the £18bn reactor scheme is expected to start generating electricity is 2025.

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An investigation in France could yet scupper the entire project. This year it was revealed that French regulator, Autorité de Sûreté Nucléaire (ASN), is planning a more thorough investigation into the Areva nuclear power company.

A two year-long investigation into the nuclear reactor to be used at the EDFowned Flamanville nuclear power plant in France – for which the design template matches Hinkley C – is due to be concluded this month with the presentation of a report to ASN. This could have major repercussions for Hinkley C if any significant problems with the Flamanville reactor vessel are found.

One of the most likely sources of replacement energy is gas retrieved from fracking and work to prepare the UK’s first fracking site has begun by energy firm Cuadrilla in Lancashire. However, this project, and similar fracking ventures elsewhere in the UK, is meeting stiff opposition from environmental lobbyists.

Anti-fracking campaigner Tina Rothery has vowed that the fight will continue "both locally and nationally...to counter this clear and present danger”.

Whether fracking will go ahead en masse or not is anybody’s guess, but in the face of such staunch public pressure, any teething problems are likely to be seized upon, spooking investors and severely hampering the pace of roll-out.

Brexit piles pressure on UK energy mix It is also far from certain that the government will be able to adhere to its strict timetable for replacing coal in the wake of the Brexit vote and indications given by Prime Minister Theresa May in January 2017 that she will take the UK out of the Single Market.

These factors combine to place a question mark against the government’s plan to

The association claims that instead of trying to control its CO2emissions by scrapping coal-fired power plants the UK could instead turn to CCS. This technology is designed to remove and store the emissions from gas and coal-fired power plants and it would allow electricity to be generated from fossil fuels without jeopardising the UK's climate change goals.

WCA goes further arguing that retaining a reliable coal and gas electricity capacity reserve based on CCS technology will be even more of an imperative if Hinkley C does not go ahead. The National Audit Office has pitched in on the side of CCS warning that scrapping the scheme will force taxpayers to fork out another £30bn to meet the UK's 2050 carbon targets through the use of even more expensive low-carbon technologies.

Can the UK kick its coal dependence?

Whether the government will change its mind on CCS, or indeed back down on its pledge to close the remaining coal-fired electricity generating plants, is as yet unclear. Last November, the government launched an open consultation on coal generation in Great Britain – which closes on 8 February – but it only seeks views on putting into effect the closure of unabated coal power stations by 2025. No mention is made of CCS.Last December, a pressure group called the British Infrastructure Group (BIG), warned that Britain could be facing nationwide festive blackouts next winter unless radical changes are made to the UK’s electricity network. It also released a study which claimed that government targets for closing coal power stations have rapidly reduced the UK’s generating output.

The effect has been for prices to rise sharply and capacity margins to be slashed.

The report found that the country’s spare electricity margin has fallen steadily from around 17% during the winter of 2011-2012 to around 1% this winter. To plug the gap the report says that household bills could, by 2020, increase by as much as £30 a year.

This is nearly double government’s present estimate. energyandecology.com

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Ecology

New solar canopy provides both shade and clean energy Sun&Shade prototype at Dubai’s Museum of the Future, as part of an exhibit called “Reimagining Climate Change.” Check out the great video overview below.

Ratti is no stranger to the world of functional eco art, with past projects that include: a “supermarket of the future,” his Paris “coolhouse,” and the New Holland pavilion at the 2015 Milan Expo. Of his latest creation, Ratti says his inspiration came from the architectural traditions of the Middle East. “In developing Sun&Shade we were inspired by the Middle Eastern tradition of shadowing in architecture and public space,” Ratti explained in a press release. “Sun&Shade aims to bring this concept to the next level, allowing shadowing to be digitally controlled.”

In a beautiful marriage of form and function, architect and designer, Carlo Ratti has created a light-reflecting canopy that both creates shade and directs sunlight to a photovoltaic panel where it generates

electricity. Called Sun&Shade, the canopy is built with mirrors that rotate automatically with the movement of the sun and reflect its rays to a solar PV panel “located a safe distance away.” Ratti just unveiled the

The position of each of Sun&Shade’s mirrors can be set independently, allowing them to be used to not only control shading and the generation of electricity, but also to create different patterns or even letters from the shadows they cast.

Portable solar unit fits into a steel drum for off-grid use Mobile Solar Chargers Ltd developed the Solar Charging Can to be an impressively versatile unit that is easy to put together in a pinch. The basic model includes a 180W/18v 5.5A solar panel, which is both flexible and waterproof, on a retractable telescoping pole, as well as two batteries, a voltage regulator, and all other necessary equipment for the unit to run smoothly. An included anchor secures the can to the ground, but the added sand bags provide an extra dose of security. Upgraded versions can be purchased to include a WiFi router, additional panels, a remote CCTV camera, and LED lighting.

The Solar Charging Can fills the gap between large-scale residential photovoltaics and portable solar chargers for your smartphone. The unit unpacks quickly for camping, outdoor events, and 20

other off-grid functions and is ready to use after just a half hour of assembly. In addition to recreational use, the unit can provide crucial power to mobile medical clinics, disaster relief areas, and refugee camps.

The entire unit can be assembled in a half hour by two people, according to the website. And they can be custom ordered to meet the needs of the event it will serve.

This is especially helpful for organizations that provide disaster relief support or intend to power housing for refugees for an extended amount of time. One Solar Charging Can starts at about $2,235 (£1,795). energyandecology.com

Issue 2 March 2017

Ecology

EU must shut down all coal plants by 2030 to hit climate targets by 85 per cent.

To stay within its carbon budgets the EU will need to completely close all its coal-fired power plants by 2031, switching off 25 per cent of these by the end of this decade.

The UK has already shut down the majority of its coal fired power plants, with coal now making upless than four per cent of the UK's electricity generation mix. The UK government has promised to phase out coal-fired power completely by 2025.

The EU will not meet its climate commitments under the Paris Agreement unless it closes all of its 315 coal-fired power plants by 2031, according to new analysis released yesterday by research institute Climate Analytics.

The research suggests Europe's coal-fired power plants will have to be closed before the end of their natural lifespan if the EU is

to keep emissions in line with the Paris climate goals of limiting global warming to "well below" two degrees.

According to Climate Analytics, the Paris target breaks down to a 6.5Gt carbon budget for the EU's coal power sector through to 2050. If all current coal plants are allowed to continue running until the end of their life, the EU will overshoot this budget

However, coal power is more prominent across the rest of Europe, particularly in Germany and Poland, which together are responsible for 51 per cent of installed coal capacity in the Union.

In order to phase coal out completely across the EU, Climate Analytics suggests more policy incentives must be offered, including reforms to the EU Emissions Trading Scheme (ETS) and more ambitious renewables targets.

Banks give €1 billion to build “Smart Europe” “We need real people putting up these wind turbines,” he said. “This all has to be done in 20 years, so there’s a huge opportunity.”

In spite of the ongoing economic crisis, Rifkin noted that the European financial sector is ready to step in and help regions with the infrastructure create a more integrated digital space.

He added that other countries have noticed how Europe is shifting and embracing technological innovation.

Investors and the banking community have agreed to pour €1 billion into the modernisation and digitalisation of Europe, Committee of the Regions.

The event, hosted by the European Committee of the Regions, saw Markkula, Rifkin and Vice-President Maroš Šefčovič converse about growth in cities and regions through innovation.

According to Rifkin, “smart cities” are essential to combating climate change.

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Rifkin said the transition to a more digitalised and modernised “smart Europe” that relies heavily on renewables will lead to the creation of millions of jobs.

Job creation will stem from the transformation of buildings and the manual labour required to carry out the transition into heavier reliance on renewables, Rifkin explained.

Rifkin said that GDP is slowing across the globe, and the economy is projected to be slow for at least 20 more years.

“China’s been watching the smart Europe initiative,” Rifkin said.

Commission Vice-President Maroš Šefčovič said many European cities excel in finding ways to reduce their energy consumption.

“Cities and regions face many challenges, from air pollution to traffic congestion. But every time I talk to a mayor or regional leader, it strikes me how creative and innovative our cities and regions are in finding solutions for these challenges,” Šefčovič remarked.

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Issue 2 March 2017

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OIL&GAS

CREATING ENTREPRENEURS TO BENEFIT LOCAL COMMUNITIES 'PDO has given contracts of more than $700 million till date to Local Community Contractors (LCCs) and is all set to power Super LCCs to develop a new set of enterprises in Oman,' says Khalfan Salim Al Busaidy, LCC manager, Petroleum Development Oman (PDO) THE INTERIORS MUST HAVE LACKED THE NECESSARY SKILLS OR EXPERIENCE?

their own (self or family) ownership. They are known as class B LCCs. We do not allocate

It has been a challenging journey all through for us though the nature and degree of challenges have changed over the years. In the initial phase, it was extremely tough. Majority of the people didn't have business background and we started by teaching them how they could help us in our operations. We provided training to them in doing non-technical work related to logistics, environment or sand mining. The initiative was welcomed by the local communities.

work to them. Instead, we provide them with opportunities to inter bid among themselves for a specified scope of work from main contracts as sub-contractors.

It was quite challenging to make them understand the nature of our business, contractual agreement and its terms, expectations from them and how their non/under performance could affect our work. To ensure that our operations. were not affected, we always had a back-up arrangement to maintain the continuity in case of any default from the LCCs.

TO START WITH, WHAT IS A LCC? LCC is defined as local community contractors. LCCs are companies owned by the tribal communities or individuals that live in PDO's concession area.

The LCC programme was started in 1998 with the objective of sharing the benefits of PDO operations with the local communities by engaging the community companies in our business activities through contract work.

Currently, we have more than 700 companies owned by individuals or families as the registered LCCs. Not all of them are active though. The active number is around 170. Overall, till date we have given them contracts with a cumulative value of over $700 million. In 2011 alone, we had provided contracts worth $105 million. As a result of our LCC programme, more than 1,000 jobs have been created for the locals DID YOU FACE MAJOR CHALLENGES IN THE BEGINNING AS THE PEOPLE IN 23

As we progressed over the years and learnt from each other, we found that some of the LCCs developed a good sense of the business. We provided consultants to them to enable them to learn more about the business management, HSE practices and importance of financial prudence.

In the last 14 years, we have ended up with over 700 LCCs but we don't have work for all of them. So we are encouraging them to expand their shareholders' base by merging with other LCCs to form a larger LCC and expand their scope of services or operations. Though there have been some takers for our suggestion but not all of them have welcomed it.

HOW DO YOU CLASSIFY THE LCCS? We have encouraged them (LCCs) to join hands with each other to form larger shareholding companies. As on date, 21 LCCs have opened their companies for others to join in as shareholders. We have classified them as 'Al Ahliya' or class A LCCs. Each Ahliya LCC must have many shareholders.

On the other hand, majority of the LCCs have opted to refrain from joining any shareholding. They have preferred to retain

WHO COULD FORM A LCC? LCC can be formed by people living in the concession area only. Any resident willing to start or join as a shareholder in a LCC must prove that he/she is a resident of the concession area.

IF YOU LOOK BACK, WHAT HAVE BEEN THE OTHER MAJOR ACHIEVEMENTS OF THE LCCS? Apart from significant value and job creation, many LCCs have graduated to become a confident and respected member of the corporate community.

They are now competing with other wellestablished companies and winning contracts on a merit basis. They have built the confidence to participate in big value contracts. The success of the programme has raised the living standards of the locals in the concession area. The new generation is well- educated and taking up the business in a professional manner.

CAN YOU SHARE SOME OF THE SUCCESS STORIES WITH US? There are many of them which started as LCCs and are now established competitive companies. For example, Shaleem Petroleum Services is providing well pulling hoist services. They got the contract through an online competitive bidding.

HADCO which started as a minor services' provider is now offering well engineering services.

Al Ghalbi Company is a pipeline integrity services company now. Saih Al Sariya is another good example. The company recently won a multi- million contract in a joint venture with an international firm.

Douhat Al Khaleej also started as a LCC and has now established the first gasket manufacturing at Nizwa Industrial Area.

Look at Saih Nahaida.

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OIL&GAS

MOVING ON, WHAT HAS BEEN PDO'S S T R AT E G Y TO TA K E T H E L C C PROGRAMME FORWARD? We already started the implementation of a new strategy for the LCC programme.

To give you the background of the new strategy, a Ministerial action team was formed in 2006 to look into the scope of the LCC scheme and find ways to improve it for making it more beneficial to the communities in the concession areas. The team comprises four members – three senior officials from the Ministry of Oil & Gas, Ministry of Commerce & Industry and Ministry of Interior along with one person from PDO. I represent PDO in this team.

It involved rounds of meetings with members of the communities in the concession areas to understand the demographics of those areas and gauge the needs/strengths of the people.

We went beyond the PDO concession area to do the study. Thereafter we submitted our findings and recommendations to the Government to give shape to the new strategy for improving the LCC programme.

As part of the new strategy, it was decided to form five Super LCCs. These includes Al Shawamikh and Al Haditha (both in North concession area), Al Baraka and Al Sahari (both in South concession area) and Al Khazain (Central concession area). The first four SLCCs have already been established and allocated the contracts by PDO and each of them is initially expected to achieve an annual turnover of $7 to $10 million. The fifth one is expected to be established at a later stage.

WHAT IS THE DIFFERENCE BETWEEN THE THREE TIER STRUCTURE – LCC (CLASS B), AL AHLIYA LCC (CLASS A) AND SLCC? The LCC (class B) is the small company owned by an individual or a family or partnership. Al Ahliya (class A) must have many shareholders. The SLCC, on the other hand, is a different ball game altogether. Each SLCC has a large capital base and is registered as a closed shareholding company on the Muscat Securities Market (MSM). Any interested person from the respective concession 24

area could subscribe to the shares of the SLCC. We have set some restrictions on the ownership say an individual cannot buy more than 2 per cent shares whereas in the case of a family, the limit is extended upto 5 per cent. To promote and protect ownership among the people living near to the area of operation in the concession area, we have allocated 50 per cent shares to those who are living in a radius of 20 kms, 35 per cent shares are for those who live in the next 20 kms radius and similarly another 15 per cent are reserved for those who reside in the subsequent 20 kms radius and cities of Adam and Thumrait. We encourage the LCCs (class A & B) to merge with the SLCCs. WHAT KIND OF SUPPORT WILL BE PROVIDED TO THE SLCCS BY PDO? Unlike LCCs, we are awarding direct contracts to them in core areas such as drilling, mechanical, engineering, electrical, etc. So they don't need to look for business from day one. They will be paid as per the market norms. Extensive coaching and training will be done by us. We will extensively train their staff (Omanis living in the concession areas) and thereafter transfer them to the respective SLCCs. We have provided them our senior engineers as technical advisors to guide them in technical aspects.

In addition, we have roped in leading international firm Black Gold Consulting to dedicatedly help SLCCs for two years to develop business plans and set-up HSE and management systems as per industry standards. We are also allocating industrial plots and workshops at PDO owned locations for SLCCs. Our vision is that in two years, these companies must become ISO certified. We are also investing $35 million in buying equipment for SLCCs. The investment will be treated as an interest free loan for 10 years. Each company will be governed by a board with guidance from us and Black Gold Consultants.

WHAT IS THE VISION FOR SLCCS? Our aim is to ensure that these SLCCs acquire skills in oil & gas fields' core business and mature into fully competent contractors able to compete in the open market within 10 years.

In the first five years, our focus will be on developing these companies by giving them all the support and direct contracts as per the market prices. In the subsequent five years, we expect them to become competitive under our supervision. We will allow them to submit their bids for works that have been previously assigned to them.

If the offer is not found suitable compared to the market prices, then the company will negotiate with them to be in parity with the market trend. They will also be allowed and encouraged to participate in other open competitive tenders like other contractors.

After the incubation period of 10 years, they have to be completely independent and stand on their own feet.

WHAT ARE THE KEY CHALLENGES DO YOU FORESEE IN THE ROAD MAP AHEAD FOR THE LCCS? It is definitely not an easy task. It is difficult to manage, develop and allocate work to many LCCs. We have tried to address this issue by encouraging them to become Al Ahliya LCC or even merge with SLCC. Another problem is that the expectations of the LCCs and SLCCs are on the higher side. They also need to appreciate and understand the significant efforts made in mobilizing, training the SLCCs' workforce and developing the required competencies & HSE management system to be able to deliver as per PDO's core activities and standards. We have to create opportunities for the SLCCs from the very beginning to focus their efforts towards developing their business in core activities. We need to ensure that there is enough scope for core and support work for the newly formed SLCCs and Al Ahliya LCCs. Another challenge is to ensure that they meet the expected Omanisation targets. In the case of SLCCs, we are looking at them to achieve atleast 50 per cent Omanisation in the beginning and gradually increase it to 90 per cent by the time they enter their sixth year of operations. Despite encouragement from the Ministry of Oil & Gas and PDO, the LCCs are reluctant to merge with SLCCs. However, we are confident that in the coming years, we are going to see a new bunch of aggressive enterprises with strong business acumen as a result of the efforts energyandecology.com

Issue 2 March 2017

OIL&GAS

Duke Energy Plans 400-MW Expansion to Lincoln Combustion Turbine Station Duke said in filings. The Trilogy subdivision under construction on N.C. 73 is about 1.5 miles north of the plant. Noise studies will be done and Duke said it will take steps to muffle sounds from the plant.

Duke filed preliminary paperwork on the project Tuesday with the North Carolina Utilities Commission, whose approval Duke needs.

Duke Energy plans to build an addition to its natural gas-fired power plant in southeastern Lincoln County, the company said in filings this week.

The 400 megawatt project would enlarge Duke’s 1,200-MW Lincoln Combustion Turbine Station on Old Plank Road in

Stanley.

The plant has operated on the 746-acre site since 1995 and runs only during times of peak demand for electricity, such as winter mornings and summer afternoons.

The timing of construction is uncertain.

Duke’s planning documents show the need for 400 megawatts of additional capacity in 2024, but spokesman Rick Rhodes said the plant could be built before then.

“We’re looking at the best way to meet the growing need for peaking power and at a cost that’s in the best interest of our customers,” Rhodes said. Duke did not provide a cost estimate for the addition.

About a dozen homes in the area might be within sight of the addition’s exhaust stack,

Wartsila to Supply Two 50-MW Power Plants for UK Projects The ability to start rapidly is one of the key reasons why Wartsila’s power plant technology was chosen for these sites. The UK has added substantial amounts of intermittent renewable power generation and the power system needs flexible power plants to make sure that the system is kept reliable. Furthermore, the capacity mechanism in the UK allows Centrica to operate fast response gas-fired plant competitively in the balancing market.

“Centrica’s decision to go with our technology is a testament to the fact that our Smart Power Generation technology plays a key role in the UK power system. It shows that flexibility is needed and rewarded by the market,” says Bent Iversen, Business Development Manager at Wartsila Energy Solutions.

Wartsila will supply two 50 MW Smart Power Generation plants to energy and services company Centrica in the UK. Each plant is based on five Wartsila 34SG engines running on natural gas. The power plants are scheduled to be operational in 2018. Wartsila’s scope covers the engineering, procurement and construction (EPC). The order is booked in January, 2017.

Centrica was successful in the latest 27

capacity market auction in the UK securing agreements for more than 500MW of new build power facilities. The two gas-fired Smart Power Generation plants will be located at Brigg in North East Lincolnshire and Peterborough in Cambridgeshire. The plants will generate balancing power into the national grid and will together be capable of providing electricity for approximately 100,000 homes in less than two minutes from start to full load.

The plants will be the biggest mediumspeed engine-based gas power plants in the UK. With these new plants Wartsila’s installed capacity in the UK exceeds 250 MW. Adding flexible gas power generation allows the UK to continue adding more renewables to the power system and thus reducing system level emissions. Wartsila’s total installed power generation capacity is over 60GW in 176 countries.

energyandecology.com

Issue 2 March 2017

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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energyandecology.com

Issue 2 March 2017

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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energyandecology.com

Issue 1 February 2017

OIL&GAS

Egypt’s reforms make a difference discussed expansion of Egypt's 100,000 bpd Middle East Oil Refinery (MIDOR) in Alexandria. The project has secured financing from French banks BNP Paribas and Credit Agricole to the tune of US$1.2bn.

Upstream, most companies have actually committed to delivering raised investment levels during fiscal 2016/2017 compared to the year before, albeit from low levels.

Naturally the rebound in oil prices plays a very significant part here, but the signs are that the industry is regaining faith in the Egyptian government's ability to deliver on its promises.

Expedited processes

T E R M S H AV E B E E N s w e e t e n e d , business-friendly governance goals instilled, arrears to producers paid down, and efforts exerted to redress the country's energy balance. Perhaps most importantly, red tape has been slashed. As oil prices seem to be stabilising and strengthening, Egypt might indeed be ripe to complete a turnaround. Egypt's descent through the ranks of investor attractiveness throughout most industrial sectors in the years immediately following the 2011 Arab Spring events is well known. The following years of political instability and uncertainty further hampered the country's struggle to reemerge as an investment destination. Oil and gas companies are famously resilient, and those with an upstream presence largely remained. But with a faltering economy, burdened by an evaporating tourist industry revenues and high domestic fuel subsidies, Egypt was finding it increasingly hard to honour its oil and gas contract terms with E&P companies, and started falling into arrears. Gas exports were further curtailed as the government struggled to contain domestic demand growth, thereby depriving gas producers of further lucrative export volumes in exchange for comparatively low domestic government offtake prices. Taken together, there was little reason for companies to invest in Egypt, particularly given the decisionmaking paralysis, the practical result of the political uncertainty and turmoil. It is, however, easy to forget that even well before 2011, Egypt had trouble attracting increasingly needed investment to its promising deepwater offshore, EOR projects, downstream initiatives and Western Desert exploration. The last 30

decade of the lengthy Mubarak rule was prone to stagnation and decision-making paralysis too, albeit for different reasons.

Long-promised improvements As the most tumultuous chapter in Egypt's politics seemed to draw to a close around two years ago, the current administration, however, managed to deliver on some longpromised improvements in governance and investment terms, as well as progressing with privatisation and cutting red tape. The government could not afford its energy sector reforms to be unsuccessful, as the country's economy was in a tailspin. For the same reason they were also part of a broader economic reform package, which has come to include sweeping tax reform, a thorough budgetary review and allowing the Egyptian pound to float freely. On the demand side of energy, fuel subsidies, so costly to the economy, were finally slashed in late-2016, raising gasoline and diesel prices overnight by 47 per cent. With such deep reforms being made throughout the rest of the economy, momentum could be seized upon to shortcircuit processes and deliver change within the energy sector too.

New improved upstream agreements have been implemented and signed with 76 companies,as of January 2017.

The government has in the meantime also managed to pay down its arrears to IOCs by more than 50 per cent and demands have been put on the bureaucracy to expedite permissioning processes, within deadlines.

The results look promising. Downstream and petrochemical

When Eni announced the mid-2015 discovery in August that year, the government promised its processes would all be expedited to facilitate first production in late-2017. By all accounts, it seems this ambitious timeline has been upheld. Zohr was able to progress from discovery to a signed development lease in around six months and should any first-production schedule slippage occur this year, it seems unlikely that it will be caused by bureaucratic delays.

The fast delivery of Zohr gas to the domestic market promises to alleviate the Egyptian economy's suffering further. With the need to import LNG at peak demand times, Zohr's planned addition of around 0.2 bcf/d will not change the situation radically in late 2017, but as production gradually rises to around 2.8 bcf a year by end-2018, Egypt's gas-to-power supply situation will have been completely changed. This was confirmed late last year, with an agreement allowing for the export of some of the future Zohr gas through the existing and heavily under-utilised Damietta LNG plant. The attractiveness of Egypt's offshore and of Zohr's potential was further confirmed by the buy-in to the project of both BP and Rosneft, late last year. Moreover, the Zohr discovery has in itself raised investor interest in exploration offshore Egypt, raising the likelihood of additional future discoveries.

Still, it is not all about Zohr, even in the offshore Nile Delta. BP, which has a long history in Egypt, is already developing its five tcf West Nile Delta (WND) project, as well as the Atoll gas discovery. The projects are scheduled to come onstream in 2017 and 2018 respectively, and further alleviate Egypt's tight gas balance.

investment commitments at the planning stage have reached US$17bn, according to government reports, including the longenergyandecology.com

Issue 2 March 2017

MINING

Dust Suppression Overview Heavy duty dewatering pumps DWK benefits: ¡ High reliability and flexibility pumps with protection features for harsh operation environments ¡ Top-discharge with different connection types available for multiply uses of the pumps, depending on conditions and specific needs ¡ Pumps up to 15 kW have a double mechanical seal and pump from 22 kW to 90 kW have a triple-seal system, for longer operation and less downtime The working range of DWK pumps is up to 430 m3/h flow rate maximum and up to maximum 89 m pressure head maximum.

Dust suppression is an important aspect of mining operations, and to reduce the volume of raw water required, recycled process water from settlement tanks is often used for this purpose. The creation of dust is an unavoidable result of mining operations and can clog pipes and mechanical parts, creating additional maintenance and repairs.

Water spray systems remain the most efficient and cost-effective means of dust control for both process and fugitive dust emissions. A Grundfos pumping solution can move a large amount of water in a short time, making it possible to use a large nozzle configuration and minimise the need for filtration.

Settlement ponds are a cost-effective way of reducing the size and cost of subsequent water treatment by reducing the organic load in the wastewater, by letting gravity remove impurities. The resulting water can be filtered and treated for reuse in the mineral process, or for dust suppression.

Our range of submersible multistage pumps (SP) along with variable speed drives (CUE) is unmatched for well types. State-of-the-art hydraulic design delivers optimum energy efficiency during periods of high demand with high reliability, very long service intervals and low total cost of ownership. Using of variable speed drive ensures more balanced water drawdown, protecting the water source. Grundfos matches the stainless steel build quality of the SP pumps to the groundwater conditions. Depending of the corrosion risk, high grade stainless steel variants are available. Grundfos is a supplier of the pump, motor and controls for an optimal pumping system.

The working range of SP pumps is up to 470 m3/h flow rate maximum and up to 670 m pressure head maximum.

Correct material selection is the most important method of corrosion prevention, prolonging the life span of pumps and pumps systems.

Grundfos can supply the specialist expertise to help meet your performance objectives, from the initial identification of needs, to the selection, installation, operation, and maintenance of the pumping solution. Furthermore, Grundfos tailors commissioning agreements and service agreements to your requirements, and spare parts kits and on-site recommended spare parts can also be arranged.

The Grundfos Hydro MPC range of multistage pressure boosting systems means you can manage your pressure zones with ease for the optimum transporting of water from settlement tanks, for the filling of tanks, and for delivering water to water spray systems. As standard, Hydro MPC booster systems consist of two to six CRI(E) or CR(E) pumps coupled in parallel and mounted on a common base frame with all the necessary fittings and a control cabinet. The working range of Hydro MPC boosting system is up to 720 m3/h flow rate maximum and up to 160 m pressure head maximum.

Solid construction with high-grade materials such as chromium steel and silicon carbide means the Grundfos DW range of dewatering pumps is ideal for pits, for temporary or fixed installation, and offers high-pressure pump performance unhindered by sand or other abrasives. Solid cast iron construction and narrow design characterises the Grundfos DWK range of dewatering pumps, and this range can pump small stones at greater flow than the Grundfos DW range.

www.adara-bg.com Bulgaria, 1784 Sofia jk"Mladost-1', bul. Andrej Saharov, bl. 75A, ap.2 tel.: + 359 2 974-49-38 fax: + 359 2 974-40-38 GSM: +359 889 161 000; +359 878 405 888 office@adara-bg.com

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energyandecology.com

Issue 2 March 2017

MINING

The world’s top 5 highest-grade copper mines Being slightly behind first-ranked CLC by copper grade in ore reserves, KOV is much bigger in terms of ore tonnage and contained metal. While operations at nearly all Katanga producing units are currently suspended by Glencore pending the completion of the Whole Ore Leach Project in 2017, KOV technically is the only mine still active.

3. Kinsevere Kinsevere is a world-class copper mine located in DRC. Kinsevere was acquired by MMG in 2012 and is an important part of the company’s portfolio of high-quality base metals assets.

Conventional mining methods are used at Kinsevere to remove waste material and extract ore. Due to ground conditions, most areas can be mined without blasting.

These mines are benefitting the most from the recent copper price wave.

“Grade is king”. This is very true, especially in today’s challenging mineral commodities market conditions. The grade of metal in ore is usually directly related to the ability of a particular mine to make money and be profitable.

All things being equal, a higher grade generally means lower production costs per ounce/pound/ton, making high-grade ore deposits a crucial consideration for mining investors. Mines that can provide good returns in any market environment are “the best of breed”.

While the copper market is gaining momentum, it is a good time to look at the copper mining champions in terms of copper grade in ore reserves.

Why have only reserves been taken into account? This is because a mineral reserve is the part of the mineral resource that has demonstrated economic viability in current market conditions.

For a more accurate comparison, copper operations have been split into underground and open-pit, since these mining methods utilize different techniques and equipment.

In this research, the focus is on ore grade in reserves while putting aside other crucial parameters like ore tonnage and volume of metal contained in ore.

1. Cobre Las Cruces (CLC) First Quantum’s CLC copper deposit is exceptionally rich, and with ore reserves grading 5% copper it is believed to be the highest-grade open-pit active copper mine worldwide.

CLC is located approximately 20 kilometres northwest of the city of Seville and forms part of the Iberian Pyrite Belt, a mineral-rich area that stretches across the southwest of the peninsula.

The mine uses leaching and electrowinning technology to produce copper cathode.

Therefore, ore reserves are much less speculative than ore resources and relatively precisely reflect changes in the economic “wellbeing” of mines.

The CLC Hydrometallurgical Plant is one of the most technologically advanced in the world for treating copper.

The following analysis covers those currently active copper mining operations throughout the world that are separate reporting units and which have most recent reserves figures, calculated according to international standards and disclosed by the owners/operators after December 31, 2014.

2. Kamoto Oliveira Virgule (KOV)

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The KOV mine is part of Glencore’s Katanga operation located in the Democratic Republic of the Congo (DRC).

KOV is believed to contain the largest highgrade open-pit copper reserve/resource in the world.

Ore is hauled to the run of mine (ROM) stockpile while waste material is stockpiled on the surface or used on the walls of the tailings storage facility. With 3.5% copper grade in reserves, Kinsevere is the thirdranked copper mine on this list.

4. Sepon Sepon is MMG’s open-pit copper mine located in Savannakhet Province, southern Laos. Sepon produces 99.9% copper cathode using a whole-of-ore leach, solvent extraction and electrowinning (SX-EW) process.

Copper cathodes are transported via road and sea to manufacturers of cable, wire and tube in Asia and Europe.

Sepon has 2.7% copper grade in reserves and holds fourth place in our list of highestgrade open-pit copper mines.

5. Antas Avanco Resources’ Antas open-pit coppergold mine is located in the Carajás mineralrich province in northern Brazil.

The Carajás region is regarded as one of the most prospective mineral provinces in the world for the discovery of high-grade large-tonnage copper-gold and iron ore resources.

Antas is a high-grade, low-cost copper mine with gold byproduct credits and significant exploration potential. 2.5% copper grade in reserves puts this mine fifth on the list.

energyandecology.com

Issue 2 March 2017

MINING

Global steel production is surging in 2017 New Year holiday fell in January this year.

World number three producer India recorded the biggest gain of the major producing countries, with output increasing by 12% year-on-year. India's infrastructure push should keep blast furnaces on the subcontinent humming throughout this.

Japanese output declined slightly last year, but the world's number two producer is having a strong start to 2017 with an increase of 2.7% compared to January last year and 3.3% compared to the prior month.

US output also rose in January following an annual decline in 2016, surging 6.5% in year on year terms. The strong numbers reflect the impact of anti-dumping measures against China spurring domestic output and optimism about President Donald Trump’s infrastructure plans.

The price of iron ore reached a 30-month high on Monday, while coking coal is trading 80% higher than this time last year. The rally in the steelmaking raw materials may gain further momentum this year as global steel production kicks off the year on a strong footing.

World Steel Association data released on Tuesday, showed a 7% jump in global steel

output in January to 136.5 million tonnes.

The 50-year old industry body estimates that steel production in China, which is responsible for just shy of half the global total rose 7.4% year on year, but was fairly flat on a month-on-month basis.

Some of the strongest growth was recorded in Russia and Ukraine, the world's fifth and tenth largest producers of steel. Russian output was 11.6% higher than January 2016, while Ukraine crude steel production rose 8.5%.

What makes Chinese output particularly strong is that the country's extended Lunar

Columbus Metals gains mining lease for Tasmania's Heemskirk Tin Project Stellar Resources' wholly owned subsidiary Columbus Metals has been granted a mining lease (2023P/M) for the Heemskirk Tin Project in Tasmania, Australia.

The approval of the mining lease has been granted by Tasmanian Minister for Resources Guy Barnett.

Stellar managing director Peter Blight said: “Granting of an ML is a major step forward for Stellar’s Heemskirk Tin project, the Zeehan community and for mining in Tasmania. “ T h e M L r e f l e c t s t h e Ta s m a n i a n Government’s confidence in Stellar’s tin development proposal and provides the company with secure tenure over tin and other metallic minerals for a minimum of 12 years.

Mineral Resource of 6.35mt at 1.13% tin or 72,000t of contained tin.

The project includes three closely spaced tin deposits, namely, Queen Hill, Severn and Montana.

Stellar intends to start underground development of the site, which will commence with the Lower Queen Hill deposit and subsequently move towards the Severn and Montana deposits.

It is expected that the mine will start producing ore within six to nine months from the start date.

The company has planned to process recovered ore at the standalone modular plant, which can be expanded in future when mine development increases.

“The long-dated nature of tenure is also important for attracting finance to the project.”

Currently, the Heemkirk operation will employ 70 people directly. Employment will increase to 180 after full expansion of the mine.

Stellar Resources owns full interest in the Heemskirk Tin Project, which has a JORC

Under the mining lease that covers 560ha in the Crown land, Stellar subsidiary will

34

receive the right to carry out mining operations in the area for 12 years ending on 1 January 2029.

After procurement of necessary funding, Stellar will initiate the definitive feasibility study (DFS) work programme.

Works will include 9,000m of diamond drilling to convert mineral resources to an ore reserve, metallurgical testing, completion of mining and plant studies.

The company is also required to complete a development proposal and environmental management plan to receive environmental clearance.

DFS is scheduled to take 15 months from the start of drilling activity.

energyandecology.com

Issue 2 March 2017

MINING

World's largest gold project bulked up again Shares in Seabridge Gold (TSX:SEA) (NYSE:SA) were off to the races on Thursday after the Toronto-based company bulked up its already massive KSM goldcopper-silver project in northern British Columbia.

During morning trade Seabridge stock was exchanging hands for $11.90, up 5.3% on the New York Stock Exchange, in higher than usual volumes. Seabridge is now worth $642 million after a 44.8% year to date gain.

The KSM project is the world's largest undeveloped gold project based on mineral reserves and on Thursday the company announced expansion of the resource base at the main Deep Kerr deposit of the 100%owned project.

year's inferred resource estimate which was incorporated into the updated National Instrument 43-101 Technical Report released September last year.

A preliminary economic impact study released by Seabridge in October transformed the ambitious project into a much larger operation than originally envisaged and in the process improved both the environmental impact and economics of KSM. An NI 43-101 report filed in November incorporating the PEA and an updated PFS calls for mill throughput of 170,000 tonnes per day, 40,000 tonnes more than the earlier study which Seabridge says can be done without significant redesign of facilities. Initial capital costs have been increased by just less than 10% to $5.5 billion.

According to a statement, the new inferred resource at Deep Kerr now totals 1.92 billion tonnes grading 0.41% copper and 0.31 g/t gold (containing 19.0 million ounces of gold and 17.3 billion pounds or 7.85 million tonnes of copper) constrained by conceptual block cave shapes.

In the study the bulk of the operations are moved underground and using the blockcave method Seabridge says it can reduce waste rock by a whopping 81% or 2.4 billion tonnes over the 51 year life of the mine.

The updated resource estimate represents an increase of 3.0 million ounces of gold and 2.1 billion pounds of copper over last

By vastly increasing the amount of copper mined life of mine operating costs are now a negative $179 an ounce while all-in costs

fall to just $358 an ounce.

Economically viable Proven and Probable Mineral Reserves at KSAM are pegged of 2.2 billion tonnes grading 0.55 grams per tonne gold, 0.21% copper and 2.6 grams per tonne silver (38.8 million ounces of gold, 10.2 billion pounds of copper and 183 million ounces of silver) During the first seven years of operation annual gold output would top 1 million ounces and life of mine annual production is estimated at 592,000 ounces of gold, 286,000 pounds of copper and 2.8 million ounces of silver. Measured and Indicated Mineral Resources at KSM are estimated at 2.9 billion tonnes grading 0.54 grams per tonne gold, 0.21% copper and 2.7 grams per tonne silver which translates into 49.8 million ounces of gold, 13.6 billion pounds of copper and 253 million ounces of silver.

KSM received the green light from Canada's federal government at the end of 2014 . The federal and provincial environmental assessment process took nearly seven-years and KSM was only the second metal mine in five years to receive approval.

10 companies spend most looking for gold and copper A new report by SNL Metals and Mining on exploration spending by the largest mining companies, documents the shifting sands in the mining industry last year as the sector began to turn around.

SNL, part of S&P Global, notes that larger players allocated a total of nearly $2.2 billion for non-ferrous exploration during the year. Companies with the 20 largest exploration budgets in 2016 accounted for 31% of the just under $6.9 billion worldwide exploration total.The top 10 companies were responsible for over $1 of every $5 spent on exploration worldwide last year with combined budgets of some $1.46 billion.Exploration for gold represented 56% of the total budget of the largest players – gold companies usually dominate the top 20 list. Together copper and gold account for 90% of the budgets of the top 10 companies.

The 12 largest gold miners spending on exploration came to 37% of worldwide gold 36

allocations. Two companies, Canada’s Agnico-Eagle and South Africa-based Gold Fields joined the top ten for the first time spending $111 million and $125 million respectively.Last year’s top spender AngloGold Ashanti allocated nearly half its $185 million budget to brownfield projects with the lion’s share going into Colombia.

Larger players represented 34% of the global total spent on copper exploration. In turn two companies, Rio Tinto and Antofagasta accounted for nearly half of the spending by the top 20 companies delineating and finding copper deposits.

SNL also notes that Rio Tinto was one of the few major mining companies whose planned exploration spending increased in 2016, up about 19% to $218 million. The Melbourne-based company was also the only large firm to spend money ($20 million) on uranium exploration.

Despite the weakness on uranium markets,

total global spending on uranium was $284 million last year, nearly as much as was spent on diamonds and surpassing exploration dollars for nickel.The only other diversified mining company in the top 10 – Vale – spent $51.5 million looking for copper and $41.5 million for nickel.

Allocations for other minerals were mostly focused on phosphates and potash in Brazil and Peru.

Overall diamonds accounted for 8% (with Alrosa and De Beers responsible for about 54%) and other targets, including silver, potash, phosphates and manganese made up 7% of the spending by larger players.

Considering the stage of exploration, spending patterns in the industry changed last year notes SNL:Conventional wisdom holds that the major companies leave grassroots exploration to the juniors. It may therefore be surprising that the larger players contributed 34% of all greenfields allocations in 2016. energyandecology.com

Issue 2 March 2017