Energy&Ecology Magazine by Energy and ecology

May 2018

March/April/ issue 10

Guillermo Garcia Alcocer, Chairman of the Mexican Energy Regulatory Commission: Mexico wants 50 % clean energy by 2050

contents ENERGY 5 | Boris Sovic, Elektro Maribor 8 | Andrej Tumpej, DEM

ECOLOGY 23 | Featured theme: The intelligent, in-line pump for increased system performance

10 | EFG

26 | Emily Rochon, Greenpeace: We Cannot Aﬀord to Go on Wasting Energy

12 | Hus Ltd. – Steel manufacturing and trade

27 | Strengthening regional cooperation towards environmental and health safety

13 | New business sector emerging from energy efficiency technologies

31 | Bandelj, Belektron: Our Activities in Wholesale CO2 Markets Spurred Rapid Growth

16 | Interview with Janez Kopac, Director of the Secretariat Energy Community 19 | ISCAR Drilling for Profit with SUMO3CHAM

22 Kalina Traykova Manager, Bulgaria Energy Institute Jsc, Bulgaria http://www.eninbg.com/ Hedayat Omidvar National Iranian Gas Company

Guillermo Garcia Alcocer Chairman of the Mexican Energy Regulatory Commission 2

phone: + 359 9 8882 9391 e-mail: oﬃce@energyandecology.com www.energyandecology.com

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Issue 10 2018

Energy

Boris Sovich CEO Electro Maribor

energyandecology.com

Issue 10 2018

Energy

Boris Sovic, Elektro Maribor: Energy Must Be an Element in Development! development, prompting a high level of investment in the network. We are putting our applicable ten-year development plan into practice. As we need to revise it every two years, we are now starting to work on a new one.

The Slovenian energy company Elektro Maribor met its objectives for fiscal 2017. In January, when this interview took place, the President of the Management Board, Boris Sovič, was unable to discuss the results in detail. He did say, however, that the company had implemented investments worth more than EUR 28 million in total. In 2018, the figure is expected to grow further still, to around EUR 30 million: “As the company is performing well and the shareholders reached an important decision last year to make two-thirds of profits available for investment – the power distribution network being part of the basic infrastructure for sustainable development and the transition to a low-carbon society –, the bulk of the budget for new investments will come from the company's own resources. Cost-effective funding from the European Investment Bank (EIB) will be the only foreign source,” said Boris Sovič. In the interview, we also touched upon active consumers and energy economics in Slovenia.

What are the reasons behind the above-average share of renewable energy in your distribution area: Good weather conditions, good geography, perhaps the social status of citizens, or something else?

As you said in your first press conference in 2018, the new year brought a change in your investment budget breakdown: in 2017, 68% of investment needs were met using the company's own resources, and the remaining 32% through foreign sources of funding.

It is probably a mix of all this. The geography is undoubtedly an important factor. The valleys and fields, mountains and hills of the north-eastern part of Slovenia have large solar and hydro potential, allowing for large and small hydro projects, as well as potential for biomass and, above all, ambient heat.

True. As the company is performing well and the shareholders reached an important decision last year to make two-thirds of profits available for investment – the power distribution network being part of the basic infrastructure for sustainable development and the transition to a low-carbon society –, the bulk of the budget for new investments will come from the company's own resources. Cost-effective funding from the European Investment Bank (EIB) will be the only foreign source.

In north-eastern Slovenia, many investors have recognised the renewable energy potential. Tradition might have played a role here. The region has traditionally been a centre for renewable power generation: in 2018 we are celebrating the 100th anniversary of the completion of the Fala hydropower plant, the first in the chain of hydropower plants on the Drava river.

Back in 2014, when Slovenia was hit badly by an ice storm, the EIB got involved in projects that dealt with the damage after the storm as well as infrastructure development. As part of an arrangement signed with the EIB for the period 2014-2016, all Slovenian power distributors had access to lower cost loans worth EUR 100 million. Incidentally, the year with the highest investment activity level for Elektro Maribor was 2008, when the budget for investments was EUR 31.8 million. Most of it was foreign sources. In 2018, the investment budget is EUR 30 million, most of which is own resources. In the recent years, Elektro Maribor has also been increasing its combined stake in all Slovenia's power distribution investments: from 21.6% in 2008 to 24.8% in 2016.

Ensuring energy supply security and reliability for our consumers remains our top priority, using new modern solutions in these changing conditions marked not only by the electrification of heating through heat pumps but also by the growing electrification of transportation. All this requires increasingly strong, robust, advanced networks, to provide a foundation for a transition to a low-carbon society.

What, specifically, are Elektro Maribor's challenges in terms of innovation? The company has an innovation platform, and we are encouraging the staff to submit useful proposals and innovations. This is a source of very interesting ideas. One of the proposals involved the use of a drone. The project developed from this proposal broke even just days after its implementation. Another recent proposal had to do with an effective use of data from advanced metering systems. These systems give us an everbetter insight into the conditions in the network, and thanks to the input of our staff we can create a better user experience. Of course, the best proposals get rewarded.

What is the company you are heading focused on today?

How is the situation for Slovenia's power distribution companies today, also in relation to the DSO? Which challenges lie ahead for them in the short and long terms?

We have managed to increase the company's efficiency thanks to strong commitment from the staff. The distribution area of Elektro Maribor has an above-average share of undergrounding, of consumers involved in the remote meter reading programme, and of renewables that are integrated in the network. On the other hand, the needs of our consumers, citizens and the economy, as well as the specifics of our distribution area, particularly scattered population, clearly attest to the urgent need for further investment into a stronger, more robust and advanced network.

Power distribution in Slovenia is one of the pillars of stability in the country's energy industry. Thanks to what is clearly an efficient organisational structure, efficient regulation, and efficient corporate management, it is achieving good results and getting ready to face the challenges of today. Power distribution companies are able to raise funds to finance their investment activity alone, without being a burden on the state. They seek no guarantees and no capital increases; they regularly pay dividends, the bulk of them to the state budget.

The needs of our consumers are shifting our focus on 5

Energy One of the biggest challenges is to make networks stronger and more robust by undergrounding the medium and low voltage networks and installing insulated cables. By exercising our responsibility for efficient operation of the power distribution system and with strong network development activity, we are paving the way for a transition to a low-carbon society. In practice, this transition will entail, for instance, integration of an increasing number of heat pumps, air conditioners, other devices, and electric cars on the one hand, and an increasing number of small power plants and energy storage units on the other. Energy efficiency, including demand-side management, also requires advanced networks and modern tariffs. Power distribution companies in Slovenia are in a good position thanks to their very committed staff, the very meticulous regulator, and the very careful state capital asset manager. The companies can focus on pursuing their mission. The current organisational model with five power distribution companies is based on continuous growth in the efficiency of activities and processes. That said, the process of awarding concessions to companies that have provided power distribution services for decades should be revised. As regards organisational structures, the situation is interesting. Power distribution companies are working hard on increasing the efficiency of their operations, while those that demonstrate far poorer performance in managing capital assets and their operations are mainly concerned with organisational structures. Not just their own, but also everyone else's. This preoccupation with organisation rather than efficiency is not very productive. The corporate management model that can be found in power distribution could be transferred to other, less efficient segments of networked energy.

economy into stagnation, and the environment into degradation. Our collective effort should be towards maintaining and developing what is good in the Slovenian energy industry, and striving to improve energy supply further still. This should include careful consideration of all relevant environmental, sustainable, social and competitive aspects. We deserve to have an energy industry that continues to be a driver of development, i.e. part of the solution, not part of the problem. Until now, the energy industry in Slovenia has mainly been part of the solution. Not just recently, remember its contribution around the time when Slovenia was gaining its independence, or in the 1970s, when it was the Slovenian power industry that laid the foundation for today's integrated energy system by joining the western European interconnection. The drafting of the Energy Concept is a welcome opportunity for active participation from professionals as well as the general public. This is why we appreciate the relevant ministry's approach with a broad discussion involving a variety of stakeholders. More than 400 comments and proposals were submitted as part of the public consultation, and this is a good thing. It is somewhat bewildering, on the other hand, that two key players, the TSO and the DSO, have submitted only one comment. Considering all the evident vital changes that need to be made to the draft document, this automatically raises the question whether the professionals working in these companies are incapable of fulfilling their duty or not allowed to. In any case, I think the ministry now has goods starting points to put together a solid strategy document. How do you see the role of active consumers and their relation to the power distribution sector?

Some study has roughly estimated that with a merger of companies or some kind of process harmonisation, at least 10% savings could be made in operating costs. Meanwhile, a quick analysis has shown beyond doubt that with the current organisational structure, power distribution companies managed to cut their operating costs by 10% from 2011 to 2016. Illconsidered moves, on the other hand, could push these costs up by 11%.

Mrs Godina was right, of course. Generating energy and adapting one's demand instead of just consuming energy is the ultimate mode of participation. The power distribution sector provides the right infrastructure for consumers to be able to do this. For consumers to play an active role, we need â&#x20AC;&#x201C; again! â&#x20AC;&#x201C; a robust, strong, advanced network. This entails installation of an adequate advanced metering system, and Elektro Maribor is working hard on this.

Naturally, one cannot shun new solutions and proposals, provided that they are justified and made with due consideration. In my view, a careful analysis of strengths, weaknesses, opportunities and threats, with a thorough elaboration of arguments, is most certainly a prerequisite when deciding on making changes that affect thousands of employees, hundreds of thousands of users, and hundreds of stakeholders.

We keep repeating that power distribution is the infrastructure for sustainable development. Sustainable strategies envisage energy efficiency, renewables, and integration of advanced solutions into the network, including demand response. With advanced tariffs, consumers can use demand response to cut their own costs and the costs of the system. This is essential in making the integration of new consumers such as heat pumps, air conditioners, induction cooktops, and electric cars economically and technically viable.

You have commented publicly on Slovenia's Energy Concept, the country's forthcoming central energy strategy document, on several occasions. What is your general opinion of energy strategy drafting in Slovenia? How is the country doing in this regard? All those working in power distribution in Slovenia undoubtedly make a vital contribution to the country's high ranking in the index. The energy system clearly works well, so one would expect the strategic documents that are being drafted to at least match it in terms of quality.

All this requires a subtle understanding of the capacity of the network. Consumers should be adequately encouraged through dynamic tariff policies; without demand response, the network is not likely to be able to absorb any large-scale integration of heat pumps and/or electric vehicles.

The important question is what can be done for the energy system to work even better. Energy strategies and policies are expected to contribute to a more stable, reliable, and acceptable energy supply for citizens and the economy. A misguided energy strategy or policy can push citizens into energy poverty, the 6

energyandecology.com

Issue 10 2018

Energy

Andrej Tumpej Managing Director Dravske elektrarne Maribor d.o.o. 7

energyandecology.com

Issue 10 2018

Energy

Andrej Tumpej, DEM: Slovenia Must Become Energy Independent With eight large and several small hydropower plants, as well as four solar plants, DEM accounts for nearly one quarter of Slovenia's total electricity generation. In terms of production, what exactly are the company's targets for the future, starting with the business year 2018? Our plans cover several areas. First of all, we want to maintain high operational reliability in our generation facilities, and this will require some cost optimisation measures. I am confident that the company has the knowledge and the commitment to continue pursuing this goal. We will also continue the ongoing refurbishment of spillways, not just in the next four-year period, but in the long term. The second area we want to focus on is sediment removal, where a major step forward was made last year. This is an activity that DEM will pay constant attention to in the coming years, in order to facilitate the right energy potential of our reservoirs, thus ensuring reliable operation and flood safety. Last but not least, we will continue to seek new opportunities for renewable power generation – in addition to the still ongoing projects: the Kozjak pumped-storage power plant, projects tapping into the energy potential of the Mura river, small hydropower plants, wind turbines, solar plants. Let me also mention Phase 1 of the reconstruction of the Formin hydropower plant, i.e. the restoration of the Markovci dam, where we are starting a lengthy – about six-year – refurbishment of spillways. To enable passage for local traffic, we will build a road across the Markovci dam for the duration of the works. Also under way are preparations for the reconstruction of the machine room in the Formin HPP, DEM's youngest hydropower plant, which celebrates 40 years of operation in 2018. We are examining several reconstruction methods, from the one used in all the other hydropower plants we operate – replacing all the electrical and mechanical equipment – to keeping some of the heavy equipment. With 500 cubic metres per second, the rated flow of the plant allows for only a small increase – up to no more than 550 m3/s, and the existing equipment is powerful enough to handle this. As I said, we will examine several options for the reconstruction of the Formin HPP, and choose the best one based on factors including the energy efficiency improvement potential and the level of operational reliability, but most importantly economics.

What is your annual outlay on maintenance and investment? The company spends around EUR 3 million on maintenance, and varying amounts on investment – in the coming years, this will range from EUR 6 million to up to 20 million per year. This is just investment to ensure operational reliability, excluding investment in new facilities. Sediment removal in the Drava river basin has now become an invariable part of DEM's investment activity, at an annual cost of EUR 1 to 2 million. This is one of the activities aimed primarily at maintaining the energy potential at the level the power plants were originally designed for, as well as ensuring flood safety. We are constantly on the lookout for new ways of removing the sediment as efficiently as possible. 8

The past year was marked by poor hydrologic conditions. What else will 2017 be remembered for, and what are your expectations for 2018? True, 2017 was a relatively difficult year for our business, we have seen one of the lowest water levels in the last decade. The fact that September and December were the only two months when DEM's production plan was exceeded speaks for itself. Naturally, this had a financial impact. Add to this the fact that the electricity sales contract for 2017 was about EUR 7 million below what it had been in the previous years, for the same volumes. As a result, the profit at the end of the calendar year missed the target, but again, on account of poor hydrologic conditions. Still, I can guarantee that despite all this we could keep the company's costs in check, as total costs were also below the target. We will most certainly remember the final days of the year, with the unscheduled, but thanks to the expertise of our staff brilliantly executed nearly 7-meter drawdown in the reservoir of the Mariborski otok HPP, and the subsequent refill. This had to be done after the spillway No. 4 had been damaged and locks could not be replaced without lowering the water level. In 2018, we will carry on the activities in ongoing projects, especially those associated with tapping into the energy potential of the Mura river, tapping into wind potential, construction of small hydropower plants and solar hydropower plants at inlet channels of the Zlatoličje and Formin HPPs, and refurbishment of the existing facilities. In addition to this, as I said before, we will continue to seek new opportunities and possibilities of tapping into renewable energy potential. We are aware that things have now started to change even in energy, which has long been considered a slow-to-change industry, and that one needs to be always on the lookout for new ways and solutions to the challenges ahead. You started working with DEM in 1991 and were appointed its Director in September 2017. What is your vision for DEM in terms of business? What was the reason the HSE management saw you as the right person for this job? Within Holding Slovenske elektrarne (HSE), DEM delivers power at affordable prices, at high quality and reliability levels. This is especially important now that electricity consumption is growing. Paradoxical as it may sound, by encouraging energy efficiency measures and electric mobility, we are actually driving consumption. Therefore, the awareness about the importance of maintaining operational quality in existing facilities is key. Another issue is new units. In hydro, Slovenia may have already used the best sites, but the potential of the Mura and Sava rivers remains largely untapped. In 2005, DEM obtained a concession for the exploitation of the Mura river energy potential, which envisaged an unbroken chain of eight hydropower plants. It has later been established that a maximum of three hydropower plants could be built, including a unit that would replace the existing Ceršak HPP, which urgently needs refurbishment. Let me also emphasise that exploitation of the energy potential of the river is not and should not be the only goal. We are continuously in talks with local communities, working towards meeting other sustainable goals for the areas along the river.

energyandecology.com

Issue 10 2018

Energy On the other hand, look at Austria: the country has more than 35 hydropower plants on this river on its side of the border. A further one is now under construction (near Graz), and with plans for an additional one this means the full energy potential of the Mura river will be utilised. Austria does have its portion of environmental challenges, yet what prevails is the ambition to become energy self-sufficient based on renewables alone, by as early as 2030. On the Slovenian side of the border, this almost seems a utopian idea. If everything goes according to your plan, when could the Mura HPPs be constructed? If everything goes smoothly, the national spatial plan for the first of the HPPs should be ready towards the end of 2020. When exactly the construction works could actually begin depends on the economics of the project. Each project needs to be not only environmentally, but also economically viable. Generally speaking, though, any hydropower plant today is economically viable. Take the Fala HPP: the plant will be 100 years old in May and will continue to operate for another 40 years. These HPPs are no stranded investments. I believe there is no facility in Slovenia right now that could match the significance of the Fala HPP in 1918, when it came online. This was the largest hydropower plant in this part of Europe, in the Central Alps. In the period between the two wars as well as after World War II, by supplying power to emerging companies, it drove the industrialisation of Maribor and the region. It was thanks to Fala that Greater Maribor was, for years, one of the largest industrial centres in the former Yugoslavia. DEM has recently obtained grants for three small hydropower plants, and the first one (the Rogoznica SHPP) is already under construction. All in all, the company has acquired water permits for 13 small hydro projects on the Drava river and its tributaries. Yes, we have started with the Rogoznica SHPP, which will be followed by the Pesnica and Josipdol projects. All these are small plants, their combined capacity is about 2 MW, and water permits are valid for ten further facilities. We are also tapping into the wind potential in Ojstrica above Dravograd, where we expect we could generate about 10 MW of power by installing three wind turbines.This is another matter where Austria could be taken as an example: just a few kilometres from Ojstrica on the Austrian side of the border, two wind farms are being built as we speak. Meanwhile, Slovenia has just two wind turbines in its entire territory. We all have the same EU law, yet Slovenia does not seem to be ready as a society to really tap into the renewable energy potential, to put words into action. Let me also add that right now, Slovenia does have a very wellbalanced energy mix, with thermal energy, nuclear and renewables, but the question is what kind of energy future we opt for. One should keep in mind that a balance between energy supply and energy demand should be maintained at all times, so any ideas about Slovenia's energy mix being based on solar can be nothing but empty words. All renewables need operating reserve, and the cost of investing in renewables should include the cost of providing this reserve. Here, pumped-storage hydropower plants make a good solution. Would a new pumped-storage plant be needed as a result of your plans for renewable power generation units?

capacity, will be one of the reasons why we could build the 400 MW Kozjak pumped-pumped storage plant. As regards reserve for renewables, let us not forget that with smart grids, consumers will need to start adapting their demand to supply, as well. Energy has become a very dynamic, vibrant industry, a very interesting industry to work in. You mentioned some wind power projects DEM is working on. One of the first ones is in Ojstrica above Dravograd, which should be completed in four years. What is the cost of the investment and its payback period? Let me just briefly go back and say that investments in small hydro make a viable option even without grants, the rate of return being around 7 or 8 percent. But this only holds true for the facilities built on the land we already own. Payback periods are around 15 years, and something similar could be said of wind power plants. We are aiming to achieve a rate of return that guarantees profitability without grants. As you said, we will carry on our activities in the Ojstrica wind project. The results of a preliminary environmental assessment (ornithological impact) show that a maximum of three wind turbines with a combined capacity of just over 10 MW could be installed. The process of preparing a national spatial plan (NSP) is currently in the phase where the draft decision on NSP preparation is being coordinated with the initiator and the investor. The timeline of the adoption of a decree on the NSP will be made after the decision is given the green light by the government. We expect this to happen by the end of the first quarter. It is too early to talk about any steps beyond this. What is your stance on investment in photovoltaics â&#x20AC;&#x201C; is this still a viable option? DEM operates four solar power plants with a combined capacity of 1 MW: OCV3 on the site of the Mariborski otok HPP, Formin, ZlatoliÄ?je, and Dravograd. Another 10 MW of solar capacity could be added. We will tap into this potential as soon as we see that we can achieve the right rate of return. Generally speaking, I think photovoltaics investments will continue to rely on incentives at least for some time. This could change once there is a sufficient change in electricity prices. In one of your earlier interviews, you said Slovenia would have to stop delaying and finally face some key decisions, including the future of nuclear. Are you in favour of building a second unit in the KrĹĄko nuclear power plant? Let me answer this in a different way. I think what matters for Slovenia above all is to maintain a certain level of energy selfsufficiency, or energy independence. The higher the country's reliance on energy imports, the more vulnerable it is to energy prices that are set from the outside. In a broader perspective, we can see that energy is directly connected with water, and water with food: by operating hydropower plants, we can impact water management and flood safety on the one hand, and irrigation for food production on the other. This is especially important now that we are seeing increasing effects of climate change.

No, renewables would entail several new facilities. The new Cirkovce-Pince transmission line, with its higher transmission 9

energyandecology.com

Issue 10 2018

Energy

- Import, export and trade of electricity

Is it possible for Bulgaria to be regional electrical center of the Balkans? Unfortunately no. We are very much behind the other countries in the region. Our colleagues in Serbia and Macedоnia wonder how this is because we had the best infrastructure, powers and vision for development of the energy. But a lot of things changed. The state companies want to sell at highest possible price, their directors are pressured on many sides. They have no management contract for four or five years ahead which would give them security to outline some program for the development of the company and to realize it. These things ruin the state companies and this is best shown when we review their latest financial results. Here, we have on government coal plant – TPP “Maritsa-East 2” that was mainly refurbished and modernizes. But the tendency in Europe is to close such powers. The UK recently had historical record – for the first time in 110 they manufactured six hours of electricity without using coal. In Germany the coals are funded because too many people are working in this industry. Each of these countries has its strategy and it follows them. And what do we do – partial measures and we continue to go into circles. About company Energy Financing Group AD was established in 2004 and it operates on the free electricity market in Bulgaria since its inception in 2005 through its 49% share in the first trading company involved in the market of electric energy. After the experience accumulated, on December 18, 2006, EFG AD received its own license № Л-219-15 for the trade in electricity in the territory of Bulgaria for a period of 20 years, as well as its EIC code 32XEFG-AD - N, which allowed it to conduct import and export of electricity. Thanks to the experience of the staff and the excellent reputation of the owners of our company in the energy sector in Bulgaria and Europe EFG AD achieved excellent results at the start of its participation in the free market of electric energy both in Bulgaria and on the Balkan Peninsula. Energy Financing Group AD is certified by Bureau Veritas in accordance with the requirements of management system standards ISO 9001:2008. This gives a real opportunity to Energy Financing Group AD to consolidate its position on the electricity market as a reliable and preferred partner. For the last four years of work we have been exporting electricity to

Greece, Serbia, Macedonia and Romania. Our company has worked and continues to work with the largest power plants in Bulgaria – Kozloduy Nuclear Power Plant, Maritza East 2 TPP and Varna TPP. Our clients include Lukoil Neftochim, CEZ Trade, Ideal Standard, Agropolychim, KAI Group and some other commercial companies. Our company has also built long-term relationships with the National Electricity Company EAD (NEK EAD), both on the domestic and the external market of electric energy. After receiving the license for electricity trading at the end of 2006, EFG AD started its activities and from April 1, 2007 commenced its actual trading of electricity. As seen from the chart below, thanks to the experience gained on the open market for electricity in the Republic of Bulgaria, the company is rapidly gaining its portfolio of clients. Services 1. Following the submission of a notarized power of attorney – registration of customers or full assistance in the preparation of documents for registration of the customer on the free market; 2. Working out of detailed analyses of the company’s customers energy consumption; 3. Consultancy by our leading experts on issues related to the work and the electricity market development in the Republic of Bulgaria, the region and the European Union; 4. Analysis and experts evaluation of the benefits of a possible participation on the free electricity market; 5. Legal and technical consultancy on the legal requirements and changes to the internal energy market; 6. Short-term and long-term forecasting and balancing of electric energy consumption; 7. Consultancy and full cooperation in the carrying out of the procedure for connection to electricity transmission and distribution networks ENERGY FINANCING GROUP Sofia, Bulgaria, 10, Vihren Str. Tel.: + 359 2 892 88 08, Fax: + 359 2 892 88 13 E-mail: office@efg.bg web: www.efg.bg energyandecology.com

Issue 10 2018

Import of machines and equipment for water puriﬁcation plants used for treatment of waste and potable waters

Rough Screening Rotating comb grid – type RP Vertical bar screen chain – type CP Filter with counterﬂow cleaning – type FPC Screw ﬁlter – type FC

Fine Screening Static filter – type KS /C/S/DS Brush filter – type RS Channel brush filter – type RSC Chain type brush filter – type CS Rotating drum filter – type R

Screening compacting Oleodynamic compactor – type CO Screw compactor – type CCI Sand trap “Pista” – type DP Sand classiﬁer – type D Dynamic ﬂotation – type FD

Biological treatment and aeration Biological rotaryperculator – type RE / REVA Air diﬀusers – type A/TH/R/AX

Tertiary treatment Microscreen drum ﬁlter – type MFT Ultraﬁlatration – type MC/MA

Completation equipments Manual and motorized penstocks – type PM Belt conveyor – type NT Screw conveyor – type TC

COSME srl – Italy

Xelex Ltd. 1421, Soﬁa, Bulgaria Orphey 19 str., ﬂoor 3

Tel.: +359 2 866 60 60 Fax: +359 2 963 42 51 Mob.: + 359 888 26 96 62 E-mail: xelex@techno-link.com

ENERGY MINING

Hus Ltd. - Steel manufactoring and trade have evidenced a long list of successful business partnerships. We value our customers’ needs and trust which we consider as our reward and a milestone to our continuous growth. We aim at affirming the name of HUS as being the most reliable steel supplier in Bulgaria and continuously increase its presence on the international markets. Assets History HUS is a family company established in 1990 and headquartered in the city of Plovdiv, Bulgaria. It is specialized in manufacturing and trading of steel products. HUS proved to be a reliable partner and gained a superior reputation on the Bulgarian and East European markets. Over the years the company has constantly invested in hi-end machinery, modern production facilities, warehouses and in the development and qualification of its employees. The wide range of steel products and the high volumes of stock enable the company to meet the market demand for steel goods in various fields – construction, engineering, steel processing, and others. Values The business strategy of HUS is building and keeping sustainable long-term relationship with its partners. For more than two decades of development, competence and experience in the steel industry we

- 14 warehouses, commercial, industrial and office facilities spreading on a total area of more than 1 700 000 m2. - Over 100 000 metric tons of constantly available steel products on stock. - More than 1000 highly qualified employees firmly committed to the company’s values and goals. - More than 50 heavy-lift trucks ensuring a prompt delivery. - Financial capacity and liquidity which enables the company to meet all of its obligations to suppliers and partners on time, and invest in further business development. - Technical equipment for production of various steel products and performing steel processing services. Our Team The most valuable asset of HUS is its human capital. For more than 25 years HUS has been focusing on recruiting energetic and highly qualified specialists, and

investing in their further education and training. Our managers, engineers, sales people and production employees are fully committed to the company’s values. HUS is a modern company constantly deploying new technologies, latest management practices and sustainable development principles. The high quality provided by our company is emphasized by implementing the Quality Management System in accordance with ISO 9001:2008, ISO 14001:2004, BS OHSAS 18001:2007. Products HUS produces cold-formed welded tubes and hollow sections, low carbon hotdip galvanized and black wire, cold bent profiles, welded wire mesh, corrugated sheets and profiles for dry-wall construction and window’s reinforcements. The company also provides services such as cut to length from coils, cut to strips from coils, cut and bend of reinforcement steel. HUS is involved in domestic trade, import and export of hot-rolled and cold-rolled coils and sheets, hot-dip galvanized coils and sheets, PPGI, beams, merchant bars, concrete reinforcing steel, thermal insulation panels, seamless tubes and more. We guarantee our present and future partners high quality products, positive attitude, professional services and on-time fulfillment of all undertaken commitments. You can rely on us!

www.husltd.com/en/

Hus Ltd. 64 A Plovdiv - Sever Str., 4027 Plovdiv, Bulgaria, 12

T: +359 32 233 038 F: +359 32 233 023 office@husltd.com energyandecology.com

Issue 10 2018

Energy

New business sector emerging from energy eﬃciency technologies Montenegro has been intensifying efforts to promote and help fund energy efficiency activities through the Directorate for Energy Efficiency, which stimulates consumers of energy: households, the public sector, firms and municipalities. Dragica Sekulic, who heads the body established by the Ministry of Economy. The directorate is funded from the state budget. „Some of the funds are used for financing implementation of incentive projects, promotional and other activities. The majority of projects are funded from loans and grants,“ she told Balkan Green Energy News. Sekulić has been appointed to the position of directorgeneral in January 2014. She joined the Ministry of Economy of Montenegro in 2005 as an advisor. Before 2010, when she became deputy minister of economy responsible for energy efficiency, she worked on strategies and studies on energy development, sustainability and renewable sources. She was also the coordinator of projects with German KfW Development Bank in the sector. Three years ago Dragica Sekulić became the chief of the negotiating team for chapter 13 in the process of accession to the European Union. What new programmes can we expect? Do the companies register perpetual income from energy efficiency measures, adding enough value to increase competitiveness? During the implementation of several projects in the field of energy efficiency including reconstruction of public buildings and incentives for citizens, the Ministry of Economy cooperates with a large number of Montenegrin companies from various sectors. 13

Under our incentive projects, eligible firms have the opportunity to offer modern technologies to our citizens. In that way, a new market segment is being created in Montenegro. In addition, companies and their employees are acquiring new skills and knowledge. Companies are also improving their business portfolio. Therefore, all participants have benefits in several aspects. Having in mind achieved results and great interest, the plan of the Ministry of Economy is to establish a sustainable system for financing and to initiate a project aimed at providing different types of subsidies to citizens and small and medium-sized enterprises for the refurbishment of their facilities. In this regard, the ministry has already received technical assistance from the European Union through the Instrument for Pre-Accession Assistance (IPA) support under which the application of different options will be investigated and an appropriate sustainable financial mechanism for energy efficiency and larger use of renewable energy will be introduced. Did the results in the public sector improve awareness in municipal authorities? How do smaller and poorer communities manage the preparation of projects? According to the Law on Efficient Use of Energy and relevant bylaws, obligations of municipalities primarily relate to preparation of planning documents in the field of energy efficiency, establishment of an energy management system as well as the energy efficiency information system for buildings under their competence.

energyandecology.com

Issue 10 2018

Energy This should serve as a basis for implementation of specific activities in facilities under the competence of local authorities and for incentives for other final energy users at the municipal territory. The Ministry of Economy is aware that some Montenegrin municipalities, especially in the north, at the moment do not have the financial capacity and human resources to meet all obligations stipulated in the aforementioned law. Therefore, it has provided certain funds in the 2016 budget in order to support 13 municipalities in northern and central regions of Montenegro to create a basis for future energy efficiency planning. Similar support was provided for the majority of municipalities in the coastal region through IPA project ‘Improvement of Energy Efficiency through an Inter-Municipal Management Network’. In our opinion, efforts on determining conditions of buildings which are under the competence of municipalities in Montenegro and capacity building of municipal officials in terms of energy management will considerably facilitate further the process of planning and implementation of energy efficiency measures. What will the completion of the underwater power cable between Italy and Montenegro mean for the domestic electricity market? Do you think the interconnection will boost development of new power projects? It is the project of the highest priority. It puts Montenegro in the middle of energy flows in this geographical area becoming a strategic energy hub. The project will fully change its energy position and all the neighbouring countries will feel this change as well, especially because this project will provide them the connection with Western Europe. It gives us a huge range of other possibilities of investing in further improvements of the system. The most important one is the Trans-Balkan corridor between Montenegro and Serbia, which will connect the undersea cable from Italy further with Serbia and other traditional exporters of energy. Good connectivity is necessary for future investments in the energy sector, as well as for free flow of energy through Montenegro, which would benefit our country both financially and strategically. One of the positive impacts will be the construction of production facilities in Montenegro. Our country has showed a strong commitment to implement this project. In this regard, a financing agreement for EUR 25 million for the Trans-Balkan Electricity Corridor’s Montenegrin section has been signed on July 6. It is financed by the European Union and implemented by the German KfW Development Bank. Furthermore, the project has regional and European importance because it entails boosting Montenegrin infrastructure surrounding the undersea energy cable that will stretch to Italy and the construction of power lines between Montenegro and Serbia. This is the first operationalized project that has been approved in Vienna in 2015, initiated through the Berlin Process and based on the idea of integrating Western Balkan countries. To what extent are standards and regulations strict in public procurement? What are the experiences from public–private partnerships (PPP) in procedure and implementation?

Regarding public procurement, a rulebook on methodology for determining the level of energy efficiency in procedure of public procurement of goods and services was prepared and adopted in early 2016 together with the manual. The rulebook defines which subcriteria can be used for the determination of energy efficiency level for different groups of goods and the possibility for scoring related to the most advantageous offer. Regarding further development of public–private partnership in the field of energy efficiency, the relevant strategic document has recognized that it is necessary for the energy market to be more liberalized, particularly in terms of provision of energy services (ESCO concept). For the energy efficiency measures in the public sector – particularly lighting, water supply and buildings, the establishment of the ESCO model of financing is very important, especially bearing in mind the current financial difficulties in municipalities. Last year the ministry completed activities on the development of adequate legal framework for the application of the ESCO concept and models of energy performance contracts. In 2015, the ministry, with support of partners from the European Bank for Reconstruction and Development, has started the process of identification of a pilot project which will be implemented by using the ESCO financing model. Completion of this activity depends on several factors and the most important one is adoption of a law on PPP. What are the main responsibilities of the Directorate for Energy Efficiency? How did it improve its capacities from international support since its establishment? The ministry, through the directorate, is competent for creating and implementing energy efficiency policy. The Directorate for Energy Efficiency was established in November 2009. Currently, it employs five staff members including the director-general, plus four temporary consultants. The main objectives and mission arise from the competences of the Ministry of Economy related to energy efficiency and according to the best EU practice. The main objectives include: Identification, analysis and proposition of technically possible and cost-effective policies and measures for energy efficiency improvement related to the energy consumption side. Encouraging and promoting activities directed to savings and other energy efficiency activities, as well as reducing negative environmental impacts caused by energy conversions in energy consumption processes. Promotion of renewable energy use and utilization of other nontraditional sources with low environmental impact. Having in mind the fact that the Directorate for Energy Efficiency, beside infrastructure projects, has implemented several technical assistance projects, which were supported by the EU and many international organizations (GIZ, UNDP, EBRD, KfW etc.), its staff acquired additional knowledge and expertise in many aspects. Furthermore, employees in the directorate are, as representatives of the ministry, participating in training programmes held on regional and European levels.

The Law on Efficient Use of Energy introduced criteria in public procurement procedures and larger involvement of private sector by providing energy services. Support is provided through the Regional Energy Efficiency Program in Western Balkans (REEP), financed by the European Bank for Reconstruction and Development. 14

energyandecology.com

Issue 10 2018

Energy

Janez Kopac, Director of the Secretariat Energy Community

energyandecology.com

Issue 10 2018

Energy

Interview with Janez Kopac, Director of the Secretariat Energy Community Janez Kopač is the Director of the Energy Community Secretariat, an international organization which brings together the European Union and its neighbors, to create an integrated pan-European energy market. The Community has similar institutions as the EU, and the EU is a member of the Energy Community. Presently, the Energy Community has nine Contracting Parties: the six Balkan countries, Moldova, Ukraine and Georgia. By adopting the Energy Community Treaty, the Contracting Parties made legally binding commitments to adopt core EU energy legislation, the so-called "acquis communautaire”. The EU4Energy Initiative is part of the Eastern Partnership. In this specific initiative, the European Union works with the six Eastern Partner countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), as well as the five states of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan), to improve energy supply, security and connectivity, as well as to promote energy efficiency and the use of renewables in the region. As far as a robust legislative and regulatory framework is vital for the development of a sustainable energy sector, the EU4Energy governance project, part of the EU4Energy Initiative of the European Union, works with the six Eastern Partner countries to strengthen their legislative and regulatory frameworks, to draft policy recommendations, and to help identify investment opportunities in key strategic energy infrastructure projects. “This international organization is the waiting room for EU membership. We were bigger in the past (Romania, Bulgaria and Croatia were also Contracting Parties), but after they became EU members, they seized to be individual Parties of the Energy Community, because the EU is an integrated unit. The main purpose of the organization is to bring EU energy rules into the wider European neighbourhood, to create an internal energy market that is transparent, competitive, environmentally sustainable and secure. Unfortunately, Georgia cannot benefit from all these elements because it is not geographically connected with any EU state or Energy Community Contracting Party. Yet, it can significantly benefit from using the same approach, which is based on many years of experience in the European Union. It is not easy to establish a functioning electricity and gas market and mistakes are easy (and quick) to make. The EU learnt from its mistakes. So, Georgia can benefit from the EU’s experience and avoid making such mistakes, and thus implement the necessary reforms effectively. In Georgia, the energy market, electricity and gas, which is over-regulated, is definitely not efficient. To render its electricity sustainable, Georgia must ensure the full transparency of its electricity market, while gradually moving away from price regulation. What kind of responsibilities is Georgia taking on? In general, an electricity market should be liberalized, which means that every producer sells electricity at the market price, because if the market price is not high enough, the producer will not sell it. If it is too high, however, the producers make an excessive profit and additional suppliers will enter the market. Of course, under EU energy market rules, every consumer has the right to choose a supplier. The electricity network (cables, distribution and transmission systems, high voltage cables) is 16

regulated by the national energy regulator. In Georgia this is GNERC. The new electricity market rules are designed to bring more competition to the market. One such measure is allowing third-party access to energy infrastructure, thus allowing others to use it. This is the main idea of the competitive market: how to dismantle natural monopolies of transmission and distribution cables from the competitive activity of supplying electricity. Supply and generation are free from state intervention, and networks remain regulated. On an unregulated market, the seller and buyer sign a bilateral agreement; the state, ministry or energy regulator has nothing to do with it. The government can only intervene in exceptional cases. Such intervention is called “public service obligation” and must be very limited in time and well-justified. The government defines who is to be deemed as a ‘socially vulnerable’ customer, which is someone who cannot afford to be exposed to the free market and thus receives support from the state budget. Such a system must be transparent. What benefits does signing the Accession Protocol to the Energy Community Treaty bring Georgia? The new legislation, soon to be adopted in Georgia as a result of its signature of the Accession Protocol, will increase the transparency of retail markets and strengthen consumer protection. A liberalised energy market will offer the best deal for consumers, which for the first time can choose the energy supplier, whether it be the one offering the cheapest price or the best services. Membership in the pan-European Energy Community will also support the development of energy infrastructure projects of regional significance. In addition, the Energy Community also has a strong sustainability dimension under which Georgia will have to follow EU norms in a number of energy efficiency, environmental and soon also climate related areas. Policies like decreasing air pollution and preventing environmental damage, thus contributing to a healthier living environment, are at the heart of the Energy Community. The EU4Energy Governance Project, financed by the European Union, helps Georgia and the Energy Community to achieve these objectives. How can Georgia cooperate with its neighbours in the energy field under the new framework? The EU is surrounded by countries who respect the same rules. Georgia is surrounded by countries that do not need to respect such rules. This means that if Georgia’s electricity production exceeded its consumption, companies could stop producing energy, or sell it to neighbouring countries. Turkey is already voluntarily quite aligned with EU rules in the electricity sector and we hope that Armenia will start to apply European, and now also Georgian, rules and standards as soon as possible. That said, any cooperation is better than no cooperation; any element of the internal energy market norms and rules is better than no element. For example, Turkey is already a member of the South East European Capacity Allocation Office, which means it offers cross-border electricity capacities via tenders organized in Europe. Georgia can also start the process within the South East European Capacity Allocation Office. The result would be the country’s first direct connection with Europe.

energyandecology.com

Issue 10 2018

Energy

“Interpiborserviz” OOD - leading company in industry and energy sector Neutron analysers of the solution NAS-12 and NAS-B for constant control of the concentration of boronic acid in the process solutions and the heat carrier; Secondary displaying self-recording devices, process monitors, regulators; Gas analysers, systems for chemical control of parameters of water, steam, oil and others.; Cathodic protection of metallic facilities; Fire alarm and signalling systems;

“INTERPRIBORSERVIZ” OOD (limited liability company) is an establishment, specialized in the design, construction, service, supply and trade with systems for industrial and building management, radiation control, automation, safety, security, fire safety, telecommunications and information traffic in the field of energy, security and defence, industry, transport and ecology. Membership Member of the Bulgarian Chamber of Commerce and Industry since its establishment, and updated membership by decision № 4028388000 / 06.06.2001. Member of the Bulgarian Atomic Forum “BULATOM” since 11.09.2002.

Systems for continuous radiation monitoring α, β and γ activity, environmental monitoring, human body and limb radiation monitoring monitors, portable apparatuses, instruments and dosimeters for radiation monitoring of the human body and radiation control of α, β, γ activity or neutron radiation; Sampling devices for checking the radioactivity of aerosols, noble gases, etc. Security and access control systems and other specific systems; The personnel of the Company performs calibration and premetrological verification of the technical means in the cases, when this is required. Installation activities: Installation, wiring and fitting of electrical switchboards, electrical cabinets and junction boxes; Manufacturing and installation of pipe ducts from cable ducts;

The Company possesses certificates for builders, groups I, III and V to the Chamber of the Bulgarian Builders.

Manufacture and installation of cable routes from cable trays and beds;

Resources: instruments for measurement of electrical, radio technical, physical and chemical values; own working standards of measurement units; own information system and database.

Services for legal entities and natural persons:

Production of pipelines for water, steam and gases.

"Service and Repair Activities" Directorate

Supply and installation of air conditioning and refrigeration equipment;

Servicing of:

Construction of ventilation, heating and air-conditioning systems;

Systems for control and management of electronic blocks for automation, analogue and digital instruments for measurement of electrical and radio technical values, for measuring of temperature, mechanical values (including the highest class), level meters, flowmeters, control automats, normative converters of power, process-monitors, power units, uninterruptible power supplies (UPS);

Warranty, after-sales and subscription service and repair of equipment and / or systems.

Panel analogue and digital instruments: ammeters, voltmeters, wattmeters, varmeters, frequency meters, synchronoscopes, delta U-meters, etc., regulators, digital controllers, devices for automated systems for control of the technological process; Digital and analogue measuring instruments: calibrators (of constant and variable voltage and current, of resistance, for oscilloscopes, for temperature), frequency meters, oscilloscopes, micro ohmmeters, mega ohmmeters, insulation testers, multimeters, frequency generators, frequency and time standards, frequency comparators, nonlinear distortion meters, variable frequency voltmeters, frequency meter generators, etc. .; Pressure measuring transducers, type SAPPHIRE, SAFIR, METRAN, etc., used in the technological processes in industry; Technical manometers, exemplary gauges, electrical contact manometers, piston pressure gauges and pressure switches; Flow, level, pressure and temperature sensors, level indicators;

Directorate “Marketing and supplies” Carries out the business activities of the Company and presents “Interpriborserviz” OOD as one of the biggest suppliers of equipment, spare parts and materials for "NPP Kozloduy" EAD, HPP, refineries, chemical, ore-mining and processing enterprises, as well as for the production, repair and service activities of the Company. Prepares and performs presentations and exhibitions of new equipment, technologies and innovative experience. Thanks to the accumulated experience, the Company organizes the implementation of new turnkey projects in the industry and energetics of Bulgaria, Macedonia and Ukraine. Contacts: 3321 Kozloduy, NPP site Manager: Kostadin Dimitrov tel.: +359 973 7220; +359 973 72013 fax: +359 973 76670 е-mail: ips@inpris.com web: www.inpris.com energyandecology.com

Issue 10 2018

Energy

GIPS JSC - the major supplier of raw materials for the cement industry GIPS has developed the variety of its products in accordance with the European trends in the development and marketing of new products refracting them through the particular features and demands of the Bulgarian market. Great variety of gypsum-based and cement-based dry building mixtures ground coats and adhesives, stuccos and putties, adhesives for ceramic coverings, heat-insulation system and primers. The main endeavor of the company is to offer its’ clients products applicable in building, reconstruction and repair activities in public and residential buildings. Quality

The mine near the village of Koshava is the only underground gypsum deposit in SouthEastern Europe. The extracted by the company gypsum is a 100 % natural product and its purity reaches 95 % (the purity of the excavated from open-air quarries gypsum does not exceed 50 %).

The harmful impact on the environment is significantly reduced due to the starting of the new factory and complete installation. The permitted level of harmful emissions is 50 mg/m3 and the new installation will give off no more than 20-27 mg/m3.

In order to be competitive on the Bulgarian and European markets GIPS implements strict controlling all over the production process. The company possesses the only accredited in Bulgaria laboratory for analyzing gypsum and gypsum products. GIPS is certified by ISO 9001-2008 SGS.

The energy consumption of the production will be significantly reduced – the consumption of electricity and fuels will be reduced by 45 %.

The products of GIPS JSC are well known in Bulgaria, Serbia and Romania.

The project was approved by the Operational Program "Competitiveness of the Bulgarian economy 2007-2013.

The capacity of the new installation is 14 tons per hour.

Koshava, Bulgaria post code: 3771

The equipment of the new plant with a capacity of 80 thousand tons per year is worth 8 million euro. Supplier of equipment is "Claudius Peters Projects".

Nowadays GIPS JSC manufactures 23 products – 13 gypsum-based and 10 cement-based dry building mixtures, heatinsulation system and primers.

Phone: +359 888 405 652; +359 885 945 763 E-mail: sales.gipsad@abv.bg

Products

www.gips-ad.com

GIPS JSC is the major supplier of raw materials for the cement industry, as well as for the production of gypsum binding substances and aerated-concrete products.

Markets

Since 2006 over 22 millions BGN have been invested in reconstruction, modernization and up-dating of the technological process through buying a complex machine for mechanized underground extraction of natural gypsum, the building of two new production installations for gypsum-based and cement-based dry building mixtures and an installation for drying and separation of sand and complete installation for calcification of natural gypsum. On the 4th of October the new factory of GIPS JSC was officially opened in the village of Koshava. This is the first plant in Bulgaria with a complex installation for classification of natural gypsum.

GIPS JSC

sales@gips-ad.com; gipsad@abv.bg

energyandecology.com

Issue 10 2018

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

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 10 2018

Ecology

Guillermo Garcia Alcocer, Chairman of the Mexican Energy Regulatory Commission 21

energyandecology.com

Issue 10 2018

Ecology

Guillermo Garcia Alcocer, Chairman of the Mexican Energy Regulatory Commission: Mexico wants 50 % clean energy by 2050 The flow of investment into the energy sector has been significant. To what extent is this due to a stable regulatory framework? The Energy Reform has been able to promote investments in Mexico. There is trust in the system and trust in the way the regulation and the laws were written. A way of measuring that trust is in the investments that have been drawn to Mexico. Currently, we have USD83 billion of investment in place, most of it in the upstream arena, although, in the future, there is great potential for other parts of the value chain. We have identified more than 130 companies from 19 countries, out of which 51 are Mexican, that had never been here in the past. We are in the business of getting the market to trust the system and that has been extremely successful in terms of showing to potential investors that the regulation was built in a collaborative manner, we listened to the industry's concerns, and we are not afraid of making adjustments to the regulations. We are afraid of setting regulations that are incorrect, do not set a level playing field, and do not set the right conditions for investors to come and be comfortable with projects. We have an open relationship with companies and there are rules of contact that are similar to the US Sunshine Act. This is a great example of what transparency and good contact rules can do for an industry. How would you assess the impact of the liberalization of these markets for final consumers? What we have gained from this process is something that we have in all the other markets in Mexico: competition. There was only one gasoline service provider. By now, we have over 27 brands and are adding one each week or every two weeks. For example, we have BP, Chevron, Shell, Gulf, Glencore in partnership with Group 500, and Costco opening service stations. We have Arco, for instance, which used to be Tesoro, a large refiner from the US. We have all of these brands and most of them are including additives that make the product different from what PEMEX offered traditionally. Nevertheless, PEMEX is the wholesale seller at the present for all these brands. Competition will become a reality in the wholesale market coming into the country by the coasts and the border. In the center, some things are happening due to the railroads that right now have permits from CRE. Things are moving from the center by trains, from the coasts by boats, and from the border by pipeline as well as trucks. What are the main obstacles left to be able to meet the 2050 goal of 50% of clean energies? We have a great deal of opportunities. The decision of some countries to move away from green energy provides Mexico an opportunity to be the leader here. We are being realistic and the country has a great deal to offer. Most of our country has the solar potential; the areas where we have less potential for solar energy are equivalent to the solar potential in Spain and almost twice in Germany. If we took 1% of the territory of Sonora, which is a large state, and used that to build a solar facility, this would generate all the energy the country requires. It is flexible and that is why there are projects all over the country. Most of the 52 projects are solar. However, there is a complementary area in 22

Mexico that is attractive for wind in Tamaulipas, Oaxaca, and Yucatรกn, and this is a way of decentralizing the energy. Wind projects are also successful in Mexico so that is also great news for the development of this country. It has been an interesting discussion in Mexico because when we started the reform there was a strong opposition from industry against green energy, not because it was bad but because it was expensive. They understood it was beneficial for the country, but it was also expensive and they were unsure if it would contribute to their competitiveness. However, soon there were many auctions conducted worldwide and suddenly it was clear that solar was not only inexpensive but cheap. There was a major change in technology and Mexico was one of the countries where the prices of solar energy dropped earlier. We are in a great shape to maintain the pace of projects. How would you assess the development of the energy infrastructure in the country? We have identified areas in which there is congestion; the wind projects in Tamaulipas and Oaxaca have experienced congestion and the full potential for renewables cannot be reached unless we develop new infrastructure. That is why we are working on a superhighway, which we call the Oaxaca Transmission line that is a direct current system. We are also working to get a line into Baja California Sur for a transmission line that would connect the generation of solar to the consumers of Baja California. There is a new scheme for developing these projects that was recently announced in which the Ministry of Energy becomes the leader of the auction. The priority is to relieve the congestion in the system and continue to promote these projects that make renewables more attractive. Can you tell us more about clean energy certificates (CEL) and the role they play in supporting this market? This will start in 2018, and it will foster a free market and prices will be set by a counterpart. We need to know that suppliers have a certain percentage of the generation from renewable sources. The goal was set at 5% for 2018 and 5.8% for 2019. Therefore, 5.8% of the energy sold in the country through the market has to have a backup in the renewable energy generation. The system was designed in collaboration with USAID. Most of the renewables that we see currently that are in operation are from the law that was changed. We want them to migrate to the new system because the new renewables and the new generation that is in the market needs to have this backup. CEL will be a system in which suppliers will register and will have a certificate; we always have to know who the owner of the certificate is.

energyandecology.com

Issue 10 2018

Ecology

Featured theme: The intelligent, in-line pump for increased system performance Drinking water is a valuable resource whose reasonable use today will guarantee the necessary quantities for us in the future. The priorities to be followed include the following measures:

industrial water reaches half of the total water use, whereas in developing countries the percentage varies between 4% and 12% of national water consumption.

Preventing deterioration in the quality of the drinking water compared to the already existing condition;

One way to increase the efficiency of water use in the industry is to reuse water.

Providing bacterial safe water for the population;

Reducing the amount of water used by industrial plants will lead to a decrease in water abstraction from local water sources, increase in productivity, reduction of discharged waste water streams and their polluting loads, as well as heat consumption and operating costs.

Carrying out systemic control over the quality of drinking water; Improvement of drinking and wastewater treatment plants and strict disinfection regime; Performing periodic tests for the content of dangerous substances in surface and groundwater; Commissioning of new central water sources in the missing ones; Staged replacement of water supply networks in cities; Construction of sewerage networks; It is estimated that approximately 22% of the world's water is used for industrial purposes. In Europe and North America,

Re-use of waste water in the industry can be realized within one or more companies, guaranteeing them savings from water bills and purification costs. Depending on the pollutants they contain and the intended re-use, the waste water can be either directly used or first cleaned and then used (recycled). Nearly every industrial plant can implement measures for the reuse of waste water. Inclusion of technology for direct reuse is a relatively easy procedure, but when a purification system is needed, costs are increasing considerably.

energyandecology.com

Issue 10 2018

Ecology The ability to reuse water from one plant to another depends on the transport costs and on the quantity and quality of the water produced. In case there is a need for further purification, the participation of more companies would lead to significant cost reductions. One third of water use in Europe falls on the agricultural sector. Agriculture affects both the quantity and the quality of available water resources for other uses. In some parts of Europe, pollution only from pesticides and fertilizers used in agriculture continues to be the main cause of poor water quality. By applying good agricultural practices and favorable policy decisions, we can achieve a much more efficient use of water in agriculture, which would mean more available water resources for other uses, especially for nature. However, irrigation should not be associated with such a high water consumption. Increasing water efficiency is already being realized in Europe, both through the efficiency of water transmission (the share of water taken to the field) and the efficiency of field use (the water actually used by crops relative to the total quantity of water supplied to the crops). Policy plays a key role in stimulating the agricultural sector to introduce more effective irrigation practices. In the past, for example, water pricing policies in some European countries did not necessarily require farmers to use water efficiently. Farmers rarely paid the real cost of water, reflecting environmental and resource costs. In addition, agricultural subsidies under the EU's Common Agricultural Policy and other measures have indirectly encouraged farmers to produce more water-consuming crops by using inefficient technologies. By using wastewater in agriculture, more freshwater resources can be provided for other needs, including for nature and households. If the quality of the regenerated water is properly managed, the treated wastewater can provide an effective alternative to meet the water needs of agriculture. In support of the above, GRUNDFOS, the world's largest manufacturer of pumps and pump equipment, offers a number of solutions, ranging from the overall design and construction of sewage treatment plants to the delivery of separate water transfer, filtration, aeration and disinfection facilities. In the area of â&#x20AC;&#x2039;energy efficiency, the following can be briefly mentioned: The so-called "EuP Directive" was approved by the European Parliament and the Council of the European Union on 06.07.2005. The Directive lays down a framework of rules and criteria for setting ecodesign requirements for EuPs.

The aim of the Directive is to reduce the environmental impact caused by energy-using products and to ensure environmentally-friendly development in the future. Only the most efficient energy class A pumps available on the market currently meet the requirements of the EuP Directive. GRUNDFOS is the leader in the sector of autonomous energy efficient circulators. The company is among the first to start mass production of Energy Class A pumps. The ALPHA2 ALPHA3 and MAGNA3 circulators have long been compliant with the EuP Directive and are widely used around the world. Since 2017, the MAGNA1 range has improved features and added communication capabilities. GRUNDFOS does not expect legal constraints on the production of these products but creates a high level of responsibility and environmental care. At the core of the design of our pumps is the principle of continuous improvement. Thanks to the unique combination of innovative pump functions, MAGNA3 consumes up to 70% less power than other autonomous circulators of the same size. The MAGNA range offers a wide range of sizes suitable for domestic and commercial heating or air conditioning applications. With the market launch of TPE3 and TPE2 series linear pumps, there has been a dramatic change in the operational capabilities and energy intensity of this segment. All TPE2, TPE3 D, TPE3, TPE3 D, TPE and TPED pumps with bipolar motors up to 3 kW and four-pole motors up to 1.5 kW are equipped with permanent magnet motors that are more efficient than IE4, including power consumption of the electricity from the built-in frequency converter. As the world's leading manufacturer of pumps and pump equipment, GRUNDFOS manufactures high-performance electric motors. Manufactured electric motors with built - in frequency converters meet the high standards of E - pumps (E pumps) used in buildings, water supply and industry. In the direction of increasing energy efficiency, GRUNDFOS offers an energy audit service. With the help of a dedicated ECT (Energy Check Tool) software, precision instruments and tools of the customer make a free evaluation of pumps and pumping equipment on site and the report outlines the benefits of introducing new facilities, realizing savings compared to the current situation, an estimate of the return on investment is made.

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

energyandecology.com

Issue 10 2018

Ecology

Emily Rochon, Greenpeace

energyandecology.com

Issue 10 2018

Ecology

Emily Rochon, Greenpeace: We Cannot AďŹ&#x20AC;ord to Go on Was ng Energy What is your assessment of the current state of the world's energy sector?

What problems occur with the implementation of RES in individual countries?

Renewable energy (RE) meets more than 20% of global electricity and is growing fast, driven in part by sharp declines in costs for RE technologies, particularly wind and solar, and strong moves away from dirty, fossil fuel-based energy.

The problems that can occur when transitioning to renewable energy are usually due to three issues: poor planning, resistance from incumbent energy interests that have business models and assets dependent on maintaining the status quo, and the need to reform energy markets so that they align with an increasingly renewable and distributed energy future.

Renewable energy overtook coal in 2016 as the world's largest source of installed power capacity. Two-thirds of new power production in 2016 came from RE â&#x20AC;&#x201C; 163 GW of power, which is more than Canada's total power capacity. The greatest advances in RE have been made in power generation. Progress is being made in heating/cooling and transport, but it is slower, so RE's share of global energy demand is still only about 13% - though with huge potential to grow. It is clear that the energy transition is well underway globally, but it needs to happen much faster if we are to avoid catastrophic climate change. The differences between Slovenia and the U.S. are probably quite noticeable. How do you see the current state of the energy sector in your home country, the U.S., compared to Slovenia? In the U.S., the share of coal-fired electricity has dropped from about 50% in 2010 to about 33% today. The electricity mix is getting cleaner but RE installations are not evenly distributed across the country, so the full potential of RE is not being met. More needs to be done to encourage the deployment of RE, particularly solar, in the sunny south-eastern states, and to avoid lock-in of long-lived natural gas-fired power stations across the United States. Donald Trump's presidency has tried to turn back the clock on the inevitable energy transition by pushing the interests of coal. However, there is a huge coalition of states, cities and corporations that are pressing ahead, determined to meet the U.S. climate pledges under the Paris Agreement. States such as California and corporations such as Google can continue to lead the way. Cities are emerging as influential players that can help drive the take-up of RE and showcase innovative business and financing models. And what about in Slovenia? Slovenia's current electricity mix shows a lack of commitment to local, renewable energy resources apart from hydropower. Solar and wind account for only 7.2% of installed capacity, 243 MW (2015 figs). So, the potential of RE, especially solar, is being largely ignored. That is a huge missed opportunity, especially as the influx of tourists in the summer drives up demand when solar power is most effective. How important is it to implement RES? Moving to 100% renewable energy is the only way to tackle climate change in the energy sector. It is the only way of powering our world without polluting the air and driving up global temperatures. Our future has to be built on 100% RE and, importantly, energy efficiency. We cannot afford to go on wasting energy the way we are now.

In Europe, for example, the phase-out of coal and nuclear power is absolutely necessary to alleviate the current overcapacity issue in many countries. In addition, these resources are fundamentally incompatible with an increasingly renewable energy system from both an economic and technical perspective. Many of these power stations need to run almost constantly in order to cover costs and deliver profits to shareholders, and are unable to ramp up and down in order to balance renewable energy resources in the system. So, they act as barriers to integrating increasing levels of variable renewable energy into the energy system. The companies that own them are asking for government support, in the form of capacity payments, to prop them up and keep them profitable because they cannot rely on operating them at full capacity, or high energy. Which countries are most advanced in fossil resources and introducing RES? Emily Rochon Smaller countries are leading the way on this. Costa Rica, for instance, sourced 99% of its electricity from renewables in 2015. Morocco has the world's largest concentrated solar plant and expects to get half its electricity from RE by 2020. And how about among larger countries? Among larger countries, the global leader in renewable energy is undoubtedly China. Even though it still gets about two-thirds of its electricity from coal, and is by far the world's biggest consumer of coal, it is turning away from coal and installing RE at an unprecedented rate. In 2016, China installed about 40 of the 77 GW of solar PV installed globally. It is expected to install 56 GW of solar PV this year (2017), which would be more solar power installed in one year than any other country has in place. India, whose energy demand is growing fast, is starting to make similar moves towards renewable energy. In a few years, it has installed more solar power than California, Massachusetts and New Jersey combined and is the world's fourth largest solar power market. It is well on its way to meeting a target of 57% of electricity from RE within the next ten years, up from 13% today.In Europe, over half of Sweden's energy comes from renewables. In Finland, it is nearly 40%, and in Denmark more than 30%. Until recently, South Africa was making bold moves towards renewable energy with its REIPPP programme. Unfortunately, the state-owned utility, Eskom, is now refusing to sign new renewable energy power purchase agreements in defiance of orders by the prime minister. Instead, Eskom is trying to prop up its failing operations with its foolish plans to develop new nuclear power resources which would cost far more than renewable energy.

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Ecology

Strengthening regional cooperation towards environmental and health safety Elizabet Paunovich, Head of World Health Organization (WHO)’s European Center for Environment and Health. In your opinion, do the Western Balkans countries pay enough attention to the environmental protection from the health point of view? Are they aware of the need to improve environmental protection in order to protect health? Each year, at least 1.4 million Europeans still die prematurely as a consequence of polluted environments. The burden of environmental health issues still amounts to at least 15% of Europe’s total deaths. Air pollution is the single largest environmental health risk in Europe. WHO estimates that every year, ambient (outdoor) air pollution causes nearly 500 000 premature deaths; household (indoor) air pollution from solid-fuel combustion for heating and cooking is responsible for nearly 120 000 premature deaths. Unfortunately, some of our Member States in the Balkans and south-eastern Europe are worst in region for air quality, but they are aware of the need to improve and we are working extensively in the Region on this topic.Another issue is historical industrial contamination and polluted sites that still require remediation. Contamination can affect soil, air, food and drinking water, and people can be exposed directly through ingestion, inhalation, skin contact, and dermal absorption to a host of noxious chemical agents. About one quarter of approximately 350 000 known contaminated sites in EEA countries are due to waste or hazardous waste. Various studies estimate that approximately 27

2–6% of the population in the WHO European Region are affected by waste-related exposures. Actions in respect to these problems are also needed in the SEE region. What steps they must take to organize themselves better regarding this? Have they started to apply a multisectoral approach and developed much needed monitoring and data collection mechanisms? The need for coordinated action on environment and health issues remains clear. Most WHO Member States in southeastern Europe are either in the EU or accession countries. They need to strengthen monitoring of the health impacts to influence sectoral policies that protect their populations. One example would be in the energy policy and the use of coal. This naturally negatively affects air quality with an impact on health as I already explained. Subsidy policies and affordability linked with the high costs of other healthier and greener sources, causes that the coal is widely used in SEE region for household uses, for heating and cooking. This also plays a role: while deaths from ambient air pollution occur in all European countries, regardless of their income level, those from household air pollution are over five times greater in low- and middle-income countries than in wealthier ones.

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Ecology You have recently said that 5,400 people die in Serbia annually due to diseases associated with air pollution, and that there is a gap between rural and urban areas when it comes to the quality of water. In this regard, where Serbia and other countries in the region stand in comparison to the developed European countries? It’s easiest to illustrate that with the following chart, showing the proportion of environment-related disability-adjusted life years (DALYs) per capita in Europe. As you can see, noncommunicable diseases are the largest component for pretty much all our Member States, but there are definitely inequalities evident across the Region. A share of DALY’s caused by environmental factor, and as I pointed out by the air pollution as the single biggest environmental cause of diseases and premature deaths is contributing to this figure. We have a strong history of working with Serbia to improve the situation. For example, in May 2014 there was widespread flooding in the Balkans affecting Bosnia and Herzegovina, Croatia and Serbia. Learning from the experiences of that event there has been a need to shift the emphasis from disaster response to long-term risk management. Small-scale drinkingwater systems in rural areas of Serbia are particularly challenged by such events. Registered water-related outbreaks in the past decade were mostly attributed to small-scale water supplies, indicating that these systems represent a potential health risk. A national-level systematic survey was undertaken in 2016 to gain better insight on how the aforementioned particularities and challenges of small-scale systems may affect the quality of drinking-water supplied to rural populations. The findings clearly showed a significant urban-rural gap in water-quality. About one third of all small supplies showed faecal contamination; 71% of piped systems and 77% of individual supplies in rural areas were found to require improvement action. Since its publication, the survey has induced policy actions and measures for the improvement of rural water supplies in Serbia, in particular proposing a new provision for implementation of the water safety plan approach in the draft law on water intended for human consumption and improving enforcement of regulation on the foundation and ownership of water supply systems. Is it possible to establish direct and reliable link between premature deaths and air pollution, since its influence spans through the years and is not so visible in relation to many other factors? Yes, air pollution can affect our health in many ways with both long and short term effects. New data has revealed a stronger link between both indoor and outdoor air pollution exposure and cardiovascular diseases, such as strokes and ischaemic heart disease, as well as between air pollution and cancer. This is in addition to air pollution’s role in the development of respiratory diseases, including acute respiratory infections and chronic obstructive pulmonary diseases. Furthermore, the International Agency for Research on Cancer has classified air pollution in general, as well as particulate matter as a separate component of air pollution mixtures, as carcinogenic. Different groups of individuals are affected by air pollution in different ways. More severe health impacts are seen among those people who are already ill. In addition, more vulnerable populations like children, the elderly and those households with lower incomes and limited access to health care are more susceptible to the adverse effects from exposure to air pollution. In addition to improving the water and air quality, what other key environmental issue needs to be addressed in Serbia and the region in the context of health?

As already mentioned, the other major environmental issues continue to be improving climate resilience, especially in regard to heat-waves and flooding, remediation of industrial contaminated sites, and improved waste-water treatment. What is the impact of climate change on health in Europe and the Western Balkans? Have there been emerging any new illnesses which are not typical for this climate? Have you been in contact with the governments of the Western Balkans countries and what steps have been taken in this regard? The current and potential climate-related health risks include direct effects that mostly occur through changes in extreme weather events, and indirect effects that are mainly induced by changes in major environment, social and economic determinants. There are three main areas of public health concern related to climate change: extreme weather, changing infectious diseases and impacts on air quality, food and water safety and security. Extreme weather, such as heat-waves, cold-spells, storms, floods, droughts and fires are increasing in frequency, intensity and duration, endangering fundamental health determinants and increasing threats of injuries, communicable and noncommunicable diseases, stress-related mental illness and infrastructural damage. Changing infectious diseases, such as vector-borne, food and water-borne, as well as respiratory diseases are changing in temporal and geographical distribution due to changing climate. Climate change is projected to lead to the spreading and increase of disease vectors including, the castor bean tick, mosquitos some species of sandflies. Air quality, food and water security are three determinants of human health and well-being that are significantly altered by long-term changes of local and global climates as well as by sudden extreme weather events. By affecting the social factors underlying sustainable development (poverty, food, employment, income and livelihood, gender, education, housing) both directly or indirectly, climate change is expected to cause large human migrations, temporary and permanent; sudden and planned, some of which we have already witnessed in parts of the world. What is the WHO focus in the region when it comes to the environmental impact on the health? What projects do you implement? What are the further plans? In our office, the WHO European Centre for Environment and Health in Bonn, Germany, the main areas of our work are water and climate, living and working environments, and environment and health impact assessment. These activities are contributing to the development of healthy and safe environments that support resilient and inclusive communities across our Region. Within this scope, we work on a large spectrum of technical areas, some of which we have already talked about, but also including chemical safety, environmental noise, workers’ health protection, amongst others. s mentioned, particular focus areas in south-eastern Europe continue to be air quality, water and sanitation and contaminated sites. Indeed, we are just about to start a new project in Serbia on strengthening national capacities and inter-sectorial synergies for safe management of contaminated sites and related hazardous substances to prevent negative impact on human health and the environment, within the scope of the Strategic Approach to International Chemicals Management (SAICM) policy framework.

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Bostjan Bandelj, Director Belektron

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Bandelj, Belektron: Our Ac vi es in Wholesale CO2 Markets Spurred Rapid Growth Belektron extended its role of a market marker to EEX's emissions futures market. How significant is this step for the company?

to account for the largest part of our company's trading activity and we are sorry to see trading in this product slowly dwindle. EUAAs may only be used by airlines and account for just around 3% of all EU ETS allowances.

Belektron has been present in the environmental segment of EEX as an official market maker since 2015 for the spot market. As you said, as of August the range of products where we serve as a market maker has increased. In addition to spot products, we now provide buy and sell quotes also on the futures market. Futures contacts enable market participants to buy emissions allowances at today's prices, while the delivery is made in future when the contract expires. These contracts are used by participants in the EU Emissions Trading Scheme (EU ETS) such as thermal power plants and industrial companies that have to consider the prices of input materials. For our company, the extension of our services in partnership with EEX, the biggest European energy exchange, is a significant step towards increasing our range of services and strengthening Belektron's role as a major player in the emissions market.

What could help accelerate growth in emissions allowances prices? Could the EU achieve this with its envisaged Market Stability Reserve (MSR)?

What does your role of a marker maker entail? Market making is an important role on any exchange. We provide liquidity by being ready to place binding buy and sell quotes at any time. This means that for most of the trading day we place buy and sell prices for each of the products. As market prices fluctuate, we are changing our quotes accordingly, thus providing a more efficient price signal on the exchange. For other market participants, additional liquidity increases the likelihood that large volumes can be traded in the market at no major impact on the price. In your words, Belektron has grown to become one of the largest and most successful global companies in the field of emissions trading after entering the emissions allowances market back in 2008. Can you substantiate your estimate? In 2008, the market was dominated by global banks, most of which later withdrew from the market for various reasons. Since then, the market for emissions allowances has proven to be rather unpredictable and volatile, driving many players out. We have managed to not only avoid its pitfalls so far, but achieve rapid growth thanks to, above all, our activities in wholesale markets. Today, the market seems to have reached maturity. We are working with clients from as many as 39 different countries, and considering that our collaborations with most of them go back years, we are happy to say they are satisfied with our services. Based on our trading volumes we estimate we are one of the biggest, if not the biggest company specialised solely in emissions allowances trading, in the market otherwise dominated by global electricity and oil companies and banks. Which products do you trade in? Which products are traded in the largest volumes?

As in any other market, the price in the market for emissions allowances is driven by the interaction of supply and demand. If supply is defined under the applicable EU law, demand is a result of many factors such as economic activity in the EU, power consumption, other energy source price movements, weather, etc. All these can stimulate growth in the demand for emissions allowances, but are difficult to predict. The sheer idea of introducing emissions allowances was originally intended to encourage companies to make a transition to cleaner energy sources. Right now, the price of emissions allowances is too low to be a crucial factor for companies, and this is, above all, the consequence of overlapping EU measures and some bad decisions from the time the EU ETS was introduced. To reduce the oversupply of emissions allowances, the EU has responded by introducing additional measures such as backloading and MSR. Starting in 2019, MSR is bound to impact price growth by significantly cutting EUA supply in the market. The impacts of such measures usually show in the long term, and in the meantime prices can be very volatile. Do you think the EU ETS is effective? The EU ETS was introduced with an aim to reduce greenhouse gas emissions in EU Member States. The EU ETS works on the â&#x20AC;&#x153;cap and tradeâ&#x20AC;? principle. The amount of allowances available in the market is decreasing year by year. As a result, companies, taken together, are forced to cut their emissions. One of the targets of the EU is to cut greenhouse gas emissions by 43% by 2030 against the levels in 2005, when the EU ETS was implemented. Data shows that emissions have indeed reduced, and even more than originally projected. The EUA price is also significantly lower than projections 10 years ago indicated. This could mean that the EU has managed to cut greenhouse gas emissions at a considerably lower cost than planned. And this means the EU ETS is not only meeting, but also exceeding the set targets. However, a more thorough analysis shows that, in our opinion, the policy to reduce emissions at EU level was not designed as effectively as it could be. The EU is combating greenhouse gas emissions by using three sets of measures â&#x20AC;&#x201C; the EU ETS, encouraging renewable power generation, and energy efficiency. Even though they point to the same end goal, each of these measures is being implemented separately rather than in harmony with others. Yes, the EU is meeting (and even exceeding) its emissions reduction targets by implementing all these measures, but at a much higher cost than actually required.

We trade in virtually all products in the emissions market, EUA as the basic product in the EU ETS accounting for by far the biggest share. We also trade in CER and EUAA. CERs (and ERUs) used

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ADARA ENGINEERING LTD HAS THE SATISFACTION TO DECLARE THAT FROM JANUARY 2018 IS AN OFFICIAL REPRESENTATIVE OF THE CZECH HERMAG PUMP COMPANY, A MANUFACTURER OF A PUMP ROTARY PUMP UNDER ISO AND API STANDARDS. COVERING CHARACTERISTICS OF APPLICATION IN CHEMICAL, NUCLEAR, PETROLEUM AND GENERAL INDUSTRIES. Chemical industry Chemical industry could be characterized by constantly growing requirements on environmental and human safety, no system leakages, low maintenance and trouble free operation, all at low power consumption and low cost. Even under these challenging technical conditions, HERMAG pumps can provide optimized and cost effective solution. HERMAG pumps offers wide selection of materials, including Cast Iron, Stainless steel, Hastelloy and Titan, to cover an outstanding range of more than 600 liquids. HERMAG's canned motor pumps advantages are particularly displayed when dealing with liquids that are contaminated, toxic, valuable, liquids which react when in contact with air or any other hazardous liquids. Oil and gas Robustness, reliability and ability to withstand high pressures and high temperatures are the key challenges any process in the Oil&Gas industry must face. Hermetically sealed pumps offer many advantages when it comes to minimisation of failure in these highly demanding applications. HERMAG's API and ISO ranges are designed for ultimate reliability and smooth operation in extreme conditions, minimising the overall life-cycle cost. Quick response times and flexibility to react to any custom requirements are also some of the key

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EGC: EC to Submit New Gas Market Design Proposal in 2020 part of which four potential mergers, including Romania-Bulgaria, were chosen. The results of the finding point to moderate welfare improvements. However, besides the Spain-Portugal merger, there are almost no gains and investment costs might prohibit many mergers, explained Borchardt. “Market mergers have to come from the bottom-up. We have to first create a framework in which mergers can take place, but they should take place from the market not due to political decisions,” stressed Borchardt. The third is the combined capacity-commodity release scenario, which foresees a simultaneous increase of up to 50% in the share of short-term transmission capacities (both for existing and/or new infrastructure), and gas delivery at the first VTP inside the EU border. The European Commission plans to submit a new gas market design proposal in 2020. The focus of this new design will be on improvements in market rules, the future role of gas, and green or renewable gas, said Klaus-Dieter Borchardt, Director for the Internal Energy Market in the European Commission. Europe has “a very solid energy package which provides us with a robust framework for the gas sector”, and in general our gas market is functioning well, said Borchardt when presenting the main findings of the Quo Vadis Study, which is to be finished in the first quarter of this year. Today's gas market is also characterised with “a decent level of market liquidity, competition, and moderate and increasingly converging wholesale market prices”.

The fourth scenario is the strategic partnership concept, which foresees the EU and Russia entering “into a mutually beneficial agreement to integrate markets in a more fundamental way, to see if we can act in a more integrated way”. This scenario attempts to develop imports in a co-ordinated way, meaning liberalisation of upstream investments and export to the EU with the application of the third package rules. “This (fourth scenario; author's note) allows for co-operative solutions, and it would have the largest EU welfare and consumer surplus increase. However, this scenario is clearly hypothetical, and further analysis is needed,” said Borchardt. Gas not only a bridge fuel to renewables

However, this does not mean that everything is fine, stressed Borchardt, mentioning problems in Central and South Eastern Europe “where we still need to do much more”.

Borchardt stressed that the Quo Vadis Study “will not be automatically applied to our next gas market design proposal, which is planned for 2020”, and which will include three “big chapters”.

The key inefficiencies identified by the Quo Vadis Study are EU upstream market concentration - and, according to Borchardt “this will rather grow than decrease”, the influence on the market of long-term contracts (LTCs), the transmission tariff level and structure (the current entry-exit system has been facing a “pancaking” effect), regulatory, physical and contractual constraints to network access, representing barriers to trade, and local specifics in regulation and limited transparency.

The first is the improvement of market rules. “We will look into what we have done in the electricity market design and see which kind of ideas, mostly retail issues, need to also be adopted in the gas market,” noted Borchardt, adding that, in this area, the Commission should look at the combined capacity-commodity release scenario.

“All these are barriers to integrating the European gas market,” noted Borchardt, mentioning that four scenarios addressing these issues have been identified in the Quo Vadis Study. Four scenarios The first is the tariff reform scenario, which foresees intra-EU border tariffs and gas storage entry/exit tariffs set to zero. This would lead to a moderate welfare increase, and would support market integration and price convergence and increase liquidity. However, Borchardt doubts whether now is really the right time for such a reform. “Before we can really tackle the tariff problems, we need to have more experience of the existing rules.”

The second chapter is the future role of gas. According to Borchardt, this is “the main question that needs to be addressed in our proposal”. Borchardt stressed that it would be a mistake to focus only on using gas in the power sector. Wolfgang Urbantschitsch, a member of the executive board of EControl Austria, assessed at the conference that “it will take a while, but biogas will probably play a certain role”, noting, however, that “biogas is still very expensive”.

The second is the trading zone or market merger scenario, as 34

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Energizing change Despite the low oil price environment, expansion and investment continues in the oil and gas industry as part of the government's longer-term plan. For now, however, Kuwait is complying with a recent OPEC supply cut agreement. With some of the largest proven oil reserves in the world, Kuwait is a global energy leader focused on the responsible extraction of its natural resources. Ranked sixth in the world in terms of proven global oil reserves, Kuwait is an oil powerhouse. However, since 2009 excessive domestic energy consumption has forced Kuwait to become a net importer of natural gas, prompting many in the country to start considering more sustainable energy sources and less profligate usage. The country also cut production in January in line with an OPEC supply cut agreement, going from 2.838 million bpd in baseline production in October 2016 to 2.707 million. Oil & Gas

vacuum distillation, thermal operations, catalytic cracking, catalytic reforming, catalytic hydrocracking, and catalytic hydro treating, each of which had daily production capacity of 342,000, 80,000, 43,000, 54,600, 204,500, and 588,800 barrels, respectively. Additionally, Kuwait produced 47,800 barrels of gasoline per day, 189,700 barrels of kerosene, 226,100 barrels of distillates, and 185,300 barrels of residuals. Growth in gasoline and residuals production was particularly impressive, with each category growing 30% and 23.6%, respectively. With the exception of gasoline, of which the country demanded 71,100bpd, Kuwait produced more downstream petroleum products in every category than it consumed. Between 2014 and 2015, Kuwait added 13 new oil rigs to its energy infrastructure, bringing its total to 58. Additionally, Kuwait completed 622 new wells in that period, besting its 2014 new well completion numbers by 26. Among the members of OPEC, only Venezuela completed more, with 636. There are 1,731 producing wells in the country, comprising almost 4% of the total wells in OPEC. Of Kuwa

According to BP's Statistical Review of World Energy 2016, Kuwait has 101.5 billion barrels of proven oil reserves, representing nearly 14 billion tons of oil, and a reserve to production (r/p) ratio of 89.8. Additionally, in 2015, Kuwait produced, on average, 3.09 million barrels of oil a day, a rate that represents a 1.1% decline from 2014 production levels. As of January 2017, Kuwait is producing just over 2.7 million bpd, down from 2.838 million in October, an OPEC-orchestrated cut agreed in November aimed at pushing up the price per barrel. And in that respect, Kuwait isn't going it alone; neighbor Saudi Arabia also cut production in January by 486,000bpd to its 10.058 million bpd target. Other countries taking steps include the UAE and Iraq.

it's daily crude oil production of 1.9 million bpd, more than 77% of it is destined for Asia, while almost 14% is exported to North America, 5.3% goes to Europe, and almost 3% goes to Africa. Refined petroleum products are exported to three major markets, with Asia Pacific, Europe, and North America receiving 59.5%, 39.5%, and 1%, respectively.

Back on the home front, consumption stands at around half a million bpd, with slight growth registered in recent years. In 2015, oil throughput was roughly 910,000 barrels a day, representing 3.1% growth from the year before.

Though not as extensive as its oil reserves, Kuwait's natural gas reserves are large, totaling nearly 1.8 trillion cbm and accounting for 1% of the world's total proven reserves. In 2015, Kuwait produced nearly 15bcm of natural gas, a slight dip on last year's figures. Consumption, however, has seen a sizable uptick in recent years, and with annual use approaching 19.4 billion cubic meters Kuwait has become a net importer of gas.

Downstream value creation has remained relatively stable in recent years, and refinery capacity has remained flat for the last decade, with Kuwaiti producers capable of producing 935,000 barrels a day. According to OPEC, Kuwait's annual petroleum exports are worth nearly USD48.8 billion, and it exports more than 1.9 billion barrels of oil and more than 739,000 barrels of other petroleum exports per day. Looking more deeply at exports, the majority of Kuwait's good stuff ends up in the Asia Pacific, a region that is the destination of 80% of Kuwaiti crude exports. Zooming in further, South Korea receives about 21% of the total, with China on 16% and Japan on 12%. And in other news from January, Kuwaiti crude exports to China edged down 1.8% from a year earlier to 253,000bpd, although shipments exceeded 250,000bpd for the third consecutive month, according to the Administration of Customs.

Kuwait has a fleet of four LPG carriers with a combined capacity of 215,000cbm. Additionally, Kuwait has 13 crude oil pipelines stretching across 357 miles, each of which is owned and operated by the Kuwait Oil Company, a subsidiary of the government owned Kuwait National Petroleum Corporation (KNPC). There are also six petroleum product pipelines stretching across 125 miles, each owned and operated by KNPC.

Though depressed oil prices have hit some firms rather hard, others see the slow price growth as an opportunity for different aspects of the industry to develop and evolve. In an exclusive interview with TBY, Waleed Abdullah Al-Houti, Group Chairman of Al Dorra Petroleum Services (ADPS), discussed how pricing pressure can lead to unexpected opportunities. â&#x20AC;&#x153;There are positives and negatives," said Al-Houti. â&#x20AC;&#x153;When oil prices shrink, the private sector shrinks, but things are different on the government side. In the coming three years, around USD5 billion in projects and contracts are expected in the oil sector. So, on the government side, there is a lot of activity, expansion, and investment going on for the coming three years as part of the government's five-year development plan."

China's imports of crude jumped 27.5% in January YoY to 8.05 million bpd as it increased the quota for non-state imports in 2016 and gave private refineries the green light to directly import crude oil, according to the Kuwait Daily News. Heading back downstream, and on a technical note, a wide variety of refining techniques are in place in Kuwait, including

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Issue 10 2018

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. 39

energyandecology.com

Issue 10 2018

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 â&#x20AC;&#x201C; 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 â&#x20AC;&#x201C; 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 â&#x20AC;&#x201C; 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.

energyandecology.com

Issue 10 2018

OIL&GAS

energyandecology.com

Issue 10 2018

OIL&GAS

Pakistan’s road to energy sustainability Zahid Muzaﬀar, chairman of Pakistan’s Oil & Gas Development Company (OGDC), speaks about new oil and gas projects planned and the role China-Pakistan Economic Corridor will play in serving energy needs. Pakistan stands at one end of the China-Pakistan Economic Corridor, where it is poised to benefit from US$46 billion in new roads, bridges, wind farms and other China-backed infrastructure projects such as Balochistan’s Gwadar port which links to China’s Westerns region of restive Xinjiang.

energy needs? What opportunity does the route through Pakistan present for regional energy players?

Can you give an overview of Pakistan’s energy needs and what options are you looking at to serve these?

There is also a serious demand for energy from China, who imports a large chunk of oil and gas from Middle East. With the new route or economic corridor created between China and Pakistan, there is a great opportunity for Middle East producers to supply their crude oil and gas through this corridor, which will reduce the transport cost and time and make the energy demand grow much faster in China and within Pakistan.

Pakistan is a country which is growing very fast – the population is now over 200 million. The energy demand is growing at a very fast pace because of the economic development within the country. Primarily a gas-consuming country, we discovered gas about 50 years ago and we have a brilliant infrastructure for clean fuels. We are producing about 4 billion cubic feet of gas and we are at the moment facing unconstrained demand. The country’s gas requirement is twice as much as its production. As a way forward, we are pressing ahead on exploration to increase the production of gas and secondly, we are looking at importing natural gas in the form of LNG. We have been very successful in this so far– we developed the first LNG terminal over a year ago and the second LNG terminal will be coming online in November this year. Additionally, we’ve given approvals to private entrepreneurs to bring two-three more terminals.

There is a massive demand for energy in Pakistan and with the China-Pakistan Economic Corridor, there is a great opportunity for the Middle East suppliers.

This relationship, between China and Pakistan, is going to be very significant for Pakistan and also for the Chinese because they will be able to bring products through this route and it will also be much easier and quicker to deliver the refined products to the Middle East and Africa regions. Pakistan, being a country with a lot of land and manpower which can be used in developing industrial zones along the infrastructure being built between Pakistan and China, will provide a lot of opportunities for investors in the Middle East and even Europe to capitalise on these investment opportunities which, will be made available in due course because of this strategic partnership between China and Pakistan.

What role will the China Silk Road play in serving Pakistan’s 42

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

Dust Suppression Overview Heavy duty dewatering pumps DWK benefits: Âˇ High reliability and flexibility pumps with protection features for harsh operation environments Âˇ Top-discharge with different connection types available for multiply uses of the pumps, depending on conditions and specific needs Âˇ 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

energyandecology.com

Issue 10 2018

MINING

Top 10 Ways to Make Mines More Environmentally Friendly 1. Closing illegal and unregulated mines In context with enforcing regulations and maintaining steadfast legislation regarding a mineâ&#x20AC;&#x2122;s behavior and processes, the strict and swift closing of illegal or unregulated mining activity will set an environmental precedent within the industry. For example, before 2010, most mines in China were completely unregulated when it came to the environment and the shortcomings it was bringing to surrounding Chinese areas. After years of lax regulation and undisciplined treatment of illegal, unpermitted mines, China's government responded to a wave of public protest and partly in its own selfinterest enacted new policy measures for greener mining. These were codified in the Rare Earth Industrial Development Policy. The following regulations are the most important out of those now in practice, and they are being enforced to discourage illegal and environmentally careless mining. These measures are not yet all fully implemented in China, but the legal productivity and environmental impact are set to increase by two-fold 53

thanks to the closure of the illegal activity, and the cultivation of the existing legal mines.

reductions in materials use-often by as much as 90 percent,â&#x20AC;? reports the Canary Institute in Canada.

2. Scrap mining and recycling

3. Better legislation and regulations

On a global scale, mining corporations around the world are discovering efficient ways to capitalize fully on materials in order to provide the goods and services people want using much less wood, metal, stone, plastic and other materials. By reducing the amount of wasteful use on a public and private level, and by steering production towards the sole use of durable goods that can be easily reusable, re-manufactured, or recycled, the mining industry can begin to reduce its impact on an international scale.

Standard legislation concerning the efficiency of mining is a long way off from being the most productive and most strict government mandates that exists today. Obviously these regulations differ between nations, with some countries more advanced in terms of their legislation than others, however the need for improvement is always there in this industry, which inevitably causes some environmental damage.

This creative trend of scrap mining, or utilizing ever-reusable resource for other mining initiatives, stems from the recognition of the environmental costs of excessive materials use. Mining exacts a severe and sometimes irreversible toll on public health, water and air quality, fish and wildlife habitat, and community interests. â&#x20AC;&#x153;Recognizing that "business-asusual" practices are unsustainable, some nations, international organizations, and environmental groups are calling for major

In Canada for example, mines like the Island Copper Mine on Vancouver Island stands as a highly regulated mine site that operated from 1971 until 1995 when it was closed for resource depletion. It was due to the regulation and control of the government that a detailed mine closure plan was developed to comfortably close the mine in order to protect the few resources which remained, and the B.C. enacted the contaminated sites regulation process which was awarded the Certificate of Conditional Compliance.

energyandecology.com

Issue 10 2018

MINING 4. Improving environmental performance Mining impacts the environment in unnatural ways, which not only disrupts its natural decaying process, but also does more damage long-term than natural erosion processes. With exorbitant numbers of materials excavated and used daily, it is important to see that this destruction is actually going towards productive use. By systematically examining environmental impacts and adopting measures to mitigate these impacts, it is possible to make mining less destructive of the environment. Incremental efficiency gains will not do the job. Instead, an imaginative remaking of the industrial world-one that aligns economies with the natural environment that supports them is the sustainable way forward. Recycling has a number of advantages. Canada’s offices like The Pembina Institute, the Natural Step and The National Office of Pollution Prevention are all behind these huge pushes towards not only monitoring mining manufacturing performance, but environmental performance as well. 5. Accurate tallying of toxic mining waste Another problem with the whole sustainable mining debate has to do with secrecy in reporting toxic mining waste. Mining companies have not been accurately reporting the amounts being dumped into the environment and in doing so, have kept the public in the dark. Most notably this has been occurring with the Canadian people as of late, with a huge public backlash being the center of much of the mining industry controversy being targeted on accurate waste tallying lately. While sustainable mining looks good on paper and seems easy enough to follow provincial or federal guidelines, the industry has a way to go before it can be considered even remotely green. 6. Building from reusable waste Not only can mining present a hazard to the environment, but it can also be seen as a toll on public health if appropriate measures are not taken to ensure that the mining process is being done as safely and efficiently as possible. Case studies from mines around the world have provided numerous success stories of corporations and private mines alike being able to build new construction and 54

infrastructure from the reusable materials that a mine site presents. For example, aluminum can be substituted as a recyclable material rather than using bauxite ore, which is a rarer and less reusable item.

efficiency and a better understood industry.

By noticing the small details of the products used and generated in a mine site, the mining industry can make strides towards being a more sustainable industry. Tricks like recycling copper, which takes seven times less energy than processing ore, recycling steel which uses three-and-a-half times less energy than ore, can go a long way in determining the longevity of a mine and its positive environmental impact.

A seemingly simple but rarely prioritized activity, replenishing mine sites and mine environments is one of the key factors to not only earning the respect and cooperation of those living near the mine, but will ultimately protect the mine’s impact on the environment. Simple solutions like replenishing native soils and grasses, cleaning excess waste, proper waste removal, site inspections and replanting trees and natural forestry can rejuvenate a long-term ecosystem repair and sustain the environment for years beyond when the mine is no longer operating. The entire reclamation process should include: removing hazardous materials, reshaping land, restoring topsoil, and planting native grasses, trees or ground cover natural to the site.

7. Closing and reclaiming sites of shutdown mines The dangers of allowing no longer working mines to exist can not only allowing wasted debris the opportunity to rot and decay on site, but it can lead to illegal or unregulated mining activity. Enacting small decommissioning groups and contractors to take apart the mining processing facilities and plants; this process will allow the pipelines to be drained, equipment and parts of the mine to be cleaned and sold off, the buildings can be repurposed or demolished, warehouse materials recovered, and wasted disposed of. The main objective in the reclaiming process is to return the sire and the land which surrounds it back to reusable standards, ensuring that any landforms and structures are stable, and why watercourses need to be evaluated in order to regain water quality within the affected area. 8. Investing in research and development of Green Mining Technology The mining industry is one that is always in need of proper research and development in order to make sure the industry to ever-changing with today’s commitment to sustainability and turning the world into a more “green friendly’ place. Through either state of federal agencies, collecting funding and allowing that funding to be dispersed into ROD funds for Green Mining can be one way to positively impact the environment before and after mining projects. By pushing the envelope and never letting the future slip too far from reach, staying ahead can prevent unnecessary waste in the sense of less reusable materials, better

9. Replenishing the environment

10. Improving the efficiency of manufacturing processes By targeting the goal of closely monitoring the standard mining supply chain, mining industry giants will be forced to confront the ways in which a company can improve its efficiency by seeing exactly where the organization is lacking in terms of sustainability and green mining initiatives. This supervision of the manufacturing process is essential in order to develop new ways of thinking, new metrics, and new management/supervisory tools that will help cushion the transition into more efficient and less environmentally-harmful patterns of resource use in modern societies. Organizations like The World Resources Institute are currently conducting research on the most frequently used resources and materials, in order to better understand how the industry can conserve its non-renewable materials. The WRI has been working towards developing a database, and can now indicate the flow of materials through industrial economies. Material flows analyses will track the physical flows of natural resources through extraction, production, fabrication, use and recycling, and final disposal, accounting for both the gains and losses occurring throughout the supply chain.

energyandecology.com

Issue 10 2018

MINING

energyandecology.com

Issue 10 2018

MINING

AVZ Minerals signs 20 000 m drilling contract for DRC lithium project The AVZ Minerals contract covers the initial 20 000 m phase of a planned 40 000 m drill programme to test, define and report mineral resources at the Kitotolo and Manono sectors of the Manono lithium project.

Drill-holes MO17DD001 and MO17DD002 are approximately 400 m apart through the thickest section of the pegmatite and this zone will receive initial drill testing on sectional lines 100 m apart and drill holes 100 m apart.

The 20 000 m programme, using one multi-purpose and three diamond drill rigs, should take an estimated three months to complete.

Drilling will progress to the north and south along strike.

Drilling is planned to commence in December, and will initially target the Roche Dure pegmatite, Kitotolo sector, where recent drilling returned the following results: MO17DD001 reported between 24.5 m and 263.9 m, an intercept of 235.03 m at1.66% lithium oxide and 1 001 ppm tin. MO17DD002 reported between 65.5 m and 268.3 m, an intercept of 202.8 m at 1.57% lithium oxide and 1 078 ppm tin. AVZ Minerals believes that the Roche Dure pegmatite holds potential for significant lithium and tin mineralisation given the expected approximate thickness of up to 220 m and a potential strike length of some 2 100 m.

It is also the company’s intention to drill investigate the Carrier de L’Est Pegmatite in the Manono sector immediately to the north and south of MO17DD007 where a drill intercept confirmed mineralisation between 1.9 m and 252.83 m reporting 250.93 m at 1.48% lithium oxide and 913 ppm tin. AVZ Minerals has generated an exploration target of between 1 Bt and 1.2 Bt of 1.25% to 1.5% lithium oxide for the entire Manono project, including between 300 and 400 Mt of 1.25% to 1.5% lithium oxide for the Roche Dure Pegmatite alone. The potential quantity and grade of the exploration target as stated, is conceptual in nature as there has been insufficient exploration to estimate a mineral resource and it is uncertain if further exploration will

result in the estimation of a mineral resource. “We are very pleased to have completed the drilling tender process and awarded the contract. Equity has proved themselves in Africa as a professional company with the ability to engage and perform to a very high level and often in trying conditions,” says AVZ Minerals executive cairman, Klaus Eckhof. About Equity Drilling Equity Drilling was formed in 2016 by Mike Warren and Marc Olyott. Warren founded Geosearch which was sold in 2006. This was a 147 rig operation that operated in most African countries, south of the Sahara. Equity currently has 16 rigs and its aim is to increase this to a maximum of 20 rigs in order to provide critical mass, but at the same time still be able to provide a personalised service to those clients operating in remote or difficult environments.

energyandecology.com

Issue 10 2018

ALL THINGS FLOW

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