Energy&Ecology Magazine

June 2017 issue 5

Big plans for Kazakhstan power generation Alexander Merten, President of Rusatom International Network (RIN)

World's First Outlook for Hidden opportunity RPC Radiy – in Australian The road to Commercial CO2 Abu Dhabi 2017 Capture Plant oil industry mining industry success

contents ENERGY 4 | Energy Financing Group – Interview with Nikolay Vuzev 6 | RPC Radiy – The road to success

ECOLOGY 19 | Energy efficiency requires huge investment 20 | 5 Clean Energy Innovations That Could Transform Our World

10 | Energy efficiency in Bosnia and Herzegovina

21 | Focus on Carbon Removal a 'High-Stakes Gamble'

11 | GlassPoint on a roll in Oman

22 | Experts reject Bjørn Lomborg's view on 2C warming target

12 | ISCAR Drilling for Profit with SUMO3CHAM 14 | Interview with Janez Kopac, Director of Energy Community, Ukraine: ”In the area of energy efficiency Ukraine did almost nothing”

OIL&GAS

23 | The end of coal: EU energy companies pledge no new plants from 2020 23 | World's First Commercial CO2 Capture Plant Goes Live

MINING

26 | Outlook for Abu Dhabi 2017 oil industry

36 | Hidden opportunity in Australian mining industry

27 | Bahrain enjoys 'best deals' as it propels oil and gas development projects

37 | Olympias Gold-Silver-Lead-Zinc Mine, Greece

28 | India's shale gas prospects

38 | Why is illegal mining flourishing in Pakistan?

31 | Flue gas analysis – brilliantly easy: testo 350 – the first flue gas analyzer that thinks ahead

39 | New Acland Coal Mine Expansion, Australia

33 | Gas in Europe

40 | Dust Suppression Overview

33 | Egypt quickens pace of oil and gas development projects

41 | Research into carbon-neutral mining

9 Kalina Traykova Manager, Bulgaria Energy Institute Jsc, Bulgaria http://www.eninbg.com/ Alexandre Borde, Carbonium, France phone: + 359 9 8882 9391 e-mail: office@energyandecology.com Alexander Merten, President of Rusatom International Network (RIN) 2

www.energyandecology.com

energyandecology.com

Issue 5 June 2017

Energy

Interview with Nikolay Vuzev, Energy Financing Group AD, Bulgaria Energy Financing Group AD Manager Nikolay Vuzev speaks about energy strategy of the company and the liberalization of the market.

Mr. Vuzev, a new energy strategy of the company is about to be compiled.

Should electricity trade be given a special place in it?

- We have an idea of what is about to be set in the future strategy and most importantly, which affects us, is that preformatted will be the entire model of electricity trade. This way sought is solution of the issue with removing NEK as a sole buyer. We support such approach but only in principal.

Because in the aim to justify the so-called compensation contract (editor's note which will cover the mismatch of market and preferential price of renewable energy sources) the ministry of energy want all quantities of electricity to go through the stock exchange and the difference to be covered by the fees collected in “Security of Energy System” fund.

Now I tell you that the model all through the stock exchange will not work. It was already applied in Romania and there were some typical distortions for our latitudes.

For example, a trader woke up very early in the morning, at the same time a producer work up and there you go… they contracted a deal. The other issue is that with such “forcing” the market cannot operate normally and the small players will be dropped because of the foreseen higher charges and securities.

Why is this necessary when now we have a functioning market, a stock exchange which operates for a year now, we have direct sales from producers performed though their electronic platforms? And why a certain trader should be burdened with additional charges to make a deal with buyer on the occasion that they have known each other for years and may get work done with one phone call?

How does the liberalization of the market reflect the trade?

- First of all I would like to say that the market in Bulgaria was opened in 2005 when the large industrial consumers started concluding contracts at the free market. In other countries the liberalization initially started from the small clients and they preferred to save the industry of energy which forms a great share of their gross domestic product. We chose another model – in the beginning it had great effect because the enterprises could purchase

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cheaper electricity at the free market with 10-15 percent less. Then the schedules passed from weekly to daily which gave even greater freedom for forecasting and it benefited the expenses. Gradually increased was the number of producers as well as consumers. Now we are close to surpassing 50% of free market after this year introduced were the standardized profiles for small end customers.

Specifically to your question – yes, liberalization was beneficial. Nowadays large-scale clients may choose among 15 actually working traders on our market.

And everybody may offer different price d e p e n d i n g o n t h e c u s t o m e r, i t s consumption etc.

Are you, as a trader, interested in small companies and household customers or does everybody want large-scale companies?

- We have the whole range of customers – from the biggest to the smallers – the low voltage ones. We have the so-called unit sales – association of smaller companies, group geographically or organization of ten family hotels. With the smaller customers we face new challenges.

They want low price – we negotiate. They insist on paying through ePay or Easypay which is an additional expense for us because those companies also want their profit. This lowers our margin.

Small customers require their companies to be ready at the 30th of the month, as before, and they mostly are unwilling to pay more for innovative solutions – for example real time tracking of their consumption where they can be sure nobody is cheating.

There are indecorous payers which are used just as at the electricity distribution enterprises – not to pay several invoices and when they get a call, they pay part of the amount. This way at certain point you should estimate whether it is economically suitable to attract small customers because it requires additional resource and people.

The truth is that the electricity distribution enterprises are better prepared to deal with them.

Does competition worry you?

- There is no bad competition, the problem is where there is dumping. Now many entrepreneurs enter the market without knowing what they are dealing with because they think it is very easy. Some of them don't even know what imbalances are.

And trade with electricity requires a lot of nerves and money. And we shouldn't forget that the biggest factor is the state – the

sector is related to national security and it is normal for it to keep some control leverages. The issues come when it gets involved in the wrong way. It happened to us several times in the past ten years.

Everybody says profits are very big with us but the truth is that the marge is in the amount of 1.5-2 percent. The up-trend is also not present – it is a market. Two months ago the prognosis for October, November and December were certain for the region and Europe.

The French EDF however claimed it has problems with their plants and it should stop some quantity for checks. This way confirmed by their regulator and suddenly the price of electricity for the entire 2017 increased. If tomorrow Angela Merkel says Germany will release its NPPs the tariffs will probably decrease.

All similar factors shall be followed because they reflect the prices in Bulgaria. Many traders here are not prepared for this. I will again give an example with Romania where with the opening of the market may traders appeared offering electricity at inadequate prices. And suddenly they started to disappear. Which on the other hand led to problems for the clients while they find new suppliers. The trade with electricity is not an easy business despite many people thinking that we are only post boxes.

Which market besides the Bulgarian you sell electricity at?

- We have subsidiaries in Macedonia and Serbia, in Turkey we gave certain quantities to partners. The market there is more specific and the export is not very attractive because the Turkish state constantly changes fees and regulations. At the Greek market, which has always been a client for Bulgarian electricity, we also sell to partners – large companies. Their market at the moment opens and this year their national electrical company sold the first quantities of unregulated electricity. Until now it was semi-free, semi-regulated but it was fine for the European Commission.

From Greece we have access to Italy even though we rarely export electricity to the Apennines. We expect to soon receive an easier access to Albania.

This will be through the pipeline through Macedonia because it is very complex to reach their market through Serbia because of the disputes around Kosovo. As for Romania, we mostly purchase electricity from through or sell through partners to Hungary when the prices are suitable.

energyandecology.com

Issue 5 June 2017

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

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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 Direct correspondence: 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 5 June 2017

Energy

: The Road to Success developed RadICS Platform, which includes Analog Input for Neutron Flux Measurement Module (AIFM).

The digital I&C Platform RadICS consists of a set of general-purpose modules that can be configured and used to implement application-specific functions.

The RadICS Platform, including AIFM, is certified as Safety Integrity Level (SIL) 3 and complies with IEC 61508:2010 “Functional Safety of Electrical /Electronic /Programmable Electronic Safety Related Systems”.

Using RadICS Platform gives the following advantages in the process of I&C modernization:

Opening of Memorial to Taras Shevchenko in Sofia, Bulgaria. June 30, 2016 In the center: President of Ukraine Petro Poroshenko On the left: Chairman of the Council of PC RPC Radiy Ievgenii Bakhmach

Public Company Research and Production Corporation Radiy is a leading Ukrainian designer and supplier of advanced digital instrumentation and control (I&C) systems for operational safety of nuclear (NPP) and thermal (TPP) power plants. Radiy is a full production cycle company that includes equipment design, development, manufac ture, qualification and installation.

NPP. Since its installation at Kozloduy NPP RPC Radiy's equipment has demonstrated high reliability level performance and received a positive evaluation of the NPP personnel.

Digital I&C Platform RadICS

With a roster of over 900 professionals including more than 200 highly qualified design engineers, Radiy is dedicated to scientific research to support development of new technologies.

RPC Radiy has a long positive history of cooperation with NPPs by installing I&C systems as turn-key projects.

· Engineered Safety Features Actuation System (ESFAS), · Reactor Trip Breakers,

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- Average frequency of dangerous failures of continuous safety function – < 10-7; - Diagnostic coverage ≥ 99%. · RadICS Platform enables to implement inter-channel or inter-system redundancy using voting “2 out of 4”, “2 out of 3” or “1 out of 2” within I&C system in order to increase reliability and fault tolerance.

· RadICS platform is designed using the design-process infrastructure to support all life cycle processes, including the procedu res and development tools, verification and validation, configuration management and changes, recruitment and personnel training, project management and electronic workflow, requirements tracing, equipment qualification, as well as customer support.

Since 2007 PC “RPC Radiy” has successfully completed installation of the following I&C systems at Kozloduy NPP:

All delivered systems meet the most stringent requirements of international and national standards in the field of I&C for

RadICS Platform complies with the highest requirements of functional safety, providing the following values of reliability and safety parameters:

· RadICS Platform can significantly reduce the number of electrical communication lines within the system and consequently, the amount of copper wire required for I&C modernization at NPP. Minimizing the number of electrical communication lines is achieved through the extensive use of fiber-optic communications.

Radiy's I&C systems have been parts of the safety related systems in all operating NPP sites in Ukraine and Kozloduy NPP in Bulgaria.

· Switchgear and Electrical Distribution Systems for ESFAS.

· RadICS Platform complies with the best engineering practices, used by leading suppliers of safety I&C platforms for NPPs (many companies, such as Areva, Invensys, and others have SIL3 certificate anduse a multi-channel configuration in their platforms).

To implement current requirements to instrumentation and control systems, including control and instrumentation of neutron flux, Radiy has

The same infrastructure is used for the development of RadICS Platform-based I&C.

energyandecology.com

Issue 5 June 2017

Energy

: The Road to Success Certification of the RadICS Platform under requirements of IEC 61508:2010 The IEC 61508 standard provides methods for systems certification on the basis of four predefined Safety Integrity Levels, where SIL4 is the most demanding level. The SIL certification process requires that products developed under a Functional Safety Management Plan (FSMP) should be audited in stages by the independent certification agency . The FSMP meets all the requirements of IEC 61508 and guarantees that they are applied throughout the product life cycle.

The SIL certification process outlined in IEC 61508 requires the preparation of a set of documents specific to each phase of the product life cycle. These documents are be subject of an independent auditing and assessment process performed by a Certification Body.

Typical SIL certification process covers the following areas: Product reliability; Process execution; Human factor; Functional safety assessment.

Safety Life Cycle of the RadICS Platform implements specific stages of FPGA design development and verification. Specific technique of fault insertion testing has been performed for both hardware and software parts. One of the most critical features required for successful SIL3 certification is Requirements Tracing process. The main idea behind it is to achieve complete traceability at all project stages in order to implement all initial requirements and restrict functions to the required ones only.

Below are some results of quantitative assessment received in the process of of RadICS Platform SIL3 certification: compliance with 737 requirements of IEC 61508 (items of Safety Case); development of 200 docs of the Documentation Plan ; certification time period: one year (20102011) for preparation and 3 years (20112014) for performance; effort taken: more than 50 man-year.

On completion of the independent Functional Safety Assessment, the certification agency issues the following documents: Functional Safety Assessment Plan, Functional Safety Assessment Report and the certificate of product's compliance.

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The assessments performed by exida, as well as final independent Functional Safety Assessment, confirmed that Radiy's processes comply with SIL3 requirements and the RadICS Platform meets SIL3 requirements.

Certification of the RadICS Platform under U.S. NRC requirements RPC Radiy has always looked for new opportunities for its products and business development. One of the most ambitious business goals is to bring all benefits of RadICS digital I&C platform as a safe and reliable product to the U.S. nuclear market.

The key point of the U.S. licensing strategy is to demonstrate that the generic RadICS Platform and the associated quality and software life cycle processes comply with U.S. nuclear safety requirements.

In 2015, Radiy started working with Global Quality Assurance that was supposed to to assist RadICS LLC to fully align its QMS with 10 CFR Part 50, Appendix B, ASME NQA-1-2008, NQA-1a-2009 and 10 CFR 21.

These activities include the following steps: QA Program documents development; Quality procedures development to cover 18 criteria from Appendix B; Learning QA documentation and process of their implementation by arranging training sessions for RadICS personnel; Arranging training to obtain qualified Lead Auditor and Inspector. , etc.

On February 23-26, 2016, Global Quality Assurance successfully performed a Commercial Grade Dedication internal audit at PC RPC Radiy in Kropivnitskiy (former Kirovograd), Ukraine.

The scope of the audit was to verify and confirm that PC RPC Radiy's Quality Management System incorporates all the control required for identified characteristics to meet all manufacturing requirements commensurate with a Commercial Grade Dedication plan in compliance with 10CFR50 Appendix B program.

On July 14, 2015, PC RPC Radiy representatives met with the U.S. NRC in Rockville, the United States, as part of the certification process of the RadICS FPGAbased platform. The purpose of meeting was to present technical information about RadICS Platform, to plan i RadICS Topical Report submittal, and to receive U.S. NRC's feedback on the RadICS platform

features and the overall licensing schedule expectations..

The detailed discussions included the following areas: ·Features of the RadICS digital I&C platform and its development processes; ·RadICS quality management system and licensing program; ·Commercial grade dedication and qualification plans.

In September 2016 RPC Radiy submitted Topical Report to the U.S. NRC and in December 2016 the Report was accepted

by U.S. NRC for the detailed analysis.

PC RPC Radiy's experience in implementation of I&C systems on the basis of RadICS platform Case Study – Embalse refurbishment project In 2014 RPC Radiy successfully completed two modernization projects for Embalse NPP, Argentina, in cooperation with CanadiancompanyCANDU Energy. The first project involved the development of Window Alarm Annunciator (WAA) systems for Main Control Room (MCR) and the Secondary Control Area (SCA) at Embalse NPP. WAAs were designed to use in the Main Control Room (MCR) and Secondary Control Area (SCA) to generate alarms associated with the plant's Shutdown System One (SDS1), Shutdown System Two (SDS2) and Emergency Core Cooling (ECC) system.

Three main components were developed as part of the WAA system, two associated with the MCR. They were housed in the same Logic Card Assembly use two separate Alarm Logic Controllers (ALC) in the same chassis.heThe third one is associated with the SCA. The MCR parts of the equipment are galvanically isolated from each other.

Three main components mentioned above control alarm annunciation process by sending alarm signals to the annunciation panel. As a hardware platform for WAAs equipment, Radiy used modules and chassis of the standard RadICS FPGAbased Safety Platform.

The manufactured equipment was tested according to specific IEEE and IEC standards requirements, and demonstrated stability in different operational conditions.

energyandecology.com

Issue 5 June 2017

Energy

: The Road to Success The second modernization project for the Embalse NPP involved developing the Signal Processing Unit (SPU) of the pump motor speed measuring device (see figure below) that was designed to replace the obsolete unit in the trip signal of “pump low speed” trip in Shutdown System No. 2 (SDS2).

The SPU may be viewed as having two main components as follows: A signal acquisition and analog output components, controlled by logic configured in an FPGA chip with self-diagnostics capabilities;

additional three years.

In the scope of the project, Radiy's specialists delivered a training course on the RadICS I&C platform and its operational capabilities to the EdF researchers in Chatou, France.

This project enabled EdF engineers to get familiarized with design of FPGA-based I&C applications for both NPP modernization and new build projects.

I&C for IEA-R1 Research Reactor Control Console and Nuclear Channels

Factory Acceptance Test was successfully performed in May 2016 with the participation of customer's representatives.

The commissioning of the delivered equipment is planned for the 2017.

Conclusion RPC Radiy is one of the worldwide leaders of FPGA-based safety-related turnkey applications and other modernization projects for NPPs, both in terms of the number of installations and variety of systems . RPC Radiy has positive history, extensive knowledge and experienced

A separate power supply and monitoring system implemented via a Complex Programmable Logic Device (CPLD) to constantly monitor the FPGA. The monitoring and diagnostics drives the SPU to a safe state in case of detection of critical failures. The SPU designed and manufactured by Radiy was qualified to IEC 61513 Class 1 and it proves to support Category A safety functions.

After Radiy conducted all required qualification testing internally, Factory Acceptance Tests (FATs) of MCR and SCA Window Alarm equipment were carried out and witnessed by Candu Energy on March 11-21, 2014.

The results of the FAT and qualifications tests showed that the equipment is in full compliance with client's specification and applicable standards.

The application of FPGA-based RadICS platform in close cooperation with Candu Energy Inc., Radiy's sufficient experience and strongly developed good practices were the essential constituents for the successful completion of the projects.

Case Study – Project with Électricité de France In October 2014 RPC Radiy signed a contract with Électricité de France (EdF) to provide FPGA-based I&C Testbed based on RadICS Platform. The testbed is supposed to serve research purposes for possible future implementation in NPPs operated by EdF. The six-month development project was followed by the delivery of the testbed and its documentation, engineering tools to design safety applications in general and an EdF-specified control application. The service also includes a training course on start-up and operation of the testbed, it includes a three-year research with an optional extension of the contract for 8

Safety System Control Console for the IEA-R1 nuclear research reactor operated by Instituto de Pesquisas Energeticas e Nucleares (IPEN) – San Paulo, Brazil Factory Acceptance Testing – May 2016

Modernization: Case analysis IEA-R1 Open-pool Reactor built by Babcock-Wilcox and commissioned in 1957, 2-5 MW power, is currently operating on 3,5 MW power.

The project of I&C systems modernization of the IEA-R1 Research Reactor in IPEN Institute (San Paolo, Brazil)started in 2015 and was successfully completed in 2016.

The scope included turnkey modernization of Control Console, I&C for Nuclear Measurements, Reactor trip, ESFAS systems, and HMI Panels. Equipment list includes two Signal Processing Cabinets, Computer Cabinet and Operator Consol.

The I&C system in this project was implemented implemented on the basis of RadICS Platform.

The qualification of the system included seismic and environmental testing.The

personnel to design I&C systems for new NPPs and existing NPP modernization projects. Since 2003 RPC Radiy has designed, produced and commissioned over 100 FPGA-based turnkey applications at NPPs. PC RPC Radiy has SIL 3 certified FPGA-based safety Platform RadICS that can be used to implement different types of I&C systems for NPP. Currently RadICS platform is being certified under U.S. NRC requirements.

Contact us: 29, Geroyiv Stalingrada Street, 25009 Kirovograd, Ukraine Reception: +38 (0522) 37-30-20 International Projects Coordination: +38 (0522) 37-33-28 Technical support: +38 (0522) 37-32-44 Fax: +38 (0522) 37-33-28 http://radiy.com energyandecology.com

Issue 5 June 2017

Energy

“Big plans for Kazakhstan power generation” Alexander Merten, President of Rusatom International Network (RIN), spoke about the prospects for Kazakhstan and Russia in the civil nuclear industry including production of medical isotopes, diagnostics of cancer and its further treatment with radiopharmaceuticals.

You will participate in the Astana EXPO 2017 International Exhibition in Kazakhstan. What are you going to surprise visitors with?

Which of the Kazakh-Russian projects do you regard as the most successful?

What are the prospects of cooperation between the two countries?

Our Central Asian office was opened in Astana about 2 years ago. Since then, we have established ourselves as a regional center, staffed the office and have been working hard to promote Rosatom Group’s competencies, particularly those related to nuclear technologies and power generation.

Our nuclear technologies include medical solutions to help people maintain good health. Other aspects of cooperation are joint projects with Kazatomprom, our major partner in the country. We have 5 joint ventures operating in Kazakhstan, and all of them hold the lead in terms of uranium production, cost efficiency and sustainability. In addition, our regional office covers other countries comprising the Central Asian region, and we thus developing partnerships with Uzbekistan, Tajikistan, Kyrgyzstan and Turkmenistan.

Among our partners is the Kazakhstan National Nuclear Center (NNC) celebrating its 25th anniversary this year. We signed a cooperation agreement at last year's Atomexpo in Moscow.

Since then, our partnership has been gathering pace. Just at the end of the last week, Rosatom's delegation visited the NNC. Besides, we have signed very important agreements with Kazakhstan Engineering for joint heat generation and petrochemical equipment production and delivery to other countries, including Kazakhstan.

Russia and Kazakhstan cooperate in the field of nuclear medicine. What knowhow is Rosatom ready to share with its Kazakh partners?

Speaking of nuclear medicine, we have much room for development through mutual projects.

We have made much progress in this field, 9

Astana EXPO 2017 will start very soon, just in two weeks. Rosatom is broadly involved in the exhibition and its organization and will be play three roles. First, we will be an official partner of the exhibition. According to the agreements with EXPO-2017, Rosatom undertook to gain publicity for the event and has been promoting it both inside and outside the Group on the national and global scale. I am certain that many visitors will come to the exhibition thanks to our efforts. As a partner of EXPO-2017, we have been informing the public of this remarkable forum. Secondly, Rosatom is an exponent at Russia's national pavilion.

In fact, the very slogan of the forum – Energy of the Future – has a direct link to Rosatom, since nuclear power is a basis of green energy. Free from CO2 emissions, nuclear power is indeed the type of power that underlies all the other renewable power sources. Rosatom is very much active in this field. As Russia’s major operator, it has won a contract for the largest wind park in Russia and is about to set up production of necessary components.

We are developing the hydro power industry through our Hungary-based subsidiary Ganz EEM that manufactures containerized small hydro plants with a large sales potential in Kazakhstan and across the globe in general. These small hydro power solutions make no changes in the riverbed, have no adverse effect on aquatic flora and fauna, and ensure sustainable power supply to neighboring settlements and some facilities.

Thus, the Energy of the Future slogan suits none other better than Rosatom. Finally, the third role of Rosatom at EXPO-2017 is the creation of a nuclear-themed pavilion together with Kazatomprom. We have made a significant, mostly financial contribution to fit out the pavilion. It will be of great use and interest to students and those who looks for a job in the nuclear power sector to see the pavilion exhibits.

The Russian pavilion has focused the Energy of the Future theme on the Arctic region and the Northern Sea Route exploration. This also spotlights Rosatom as the world’s only owner of nuclear icebreakers.

Kazakhstan also has many places where the energy of the future can be used. Are there any regions of your interest or plans to apply green energy technologies in the country?

– Shortly before the interview, we had talks with two major companies from Kazakhstan. We were discussing the possibility of developing wind power industry in the country. It is true that Kazakhstan has many locations that are well suited for wind power generation.

Besides, your country has well-developed legislation on private-public partnerships, and we have a certain plan in this area. As to hydro power generation, we have big plans for Kazakhstan.

We are holding talks and have even signed several preliminary agreements providing for the small hydro industry development, primarily in the southern regions of Kazakhstan with a mountainous terrain and a lot of rivers for our projects. Of course, this is to be done in cooperation with our Kazakh partners.

The projects will be based on mutual interest and benefit. First and foremost, this will bring benefits to Kazakhstan's economy, providing cheap energy to the country's industries and population. So, our plans are really grand. I believe that Russia and Kazakhstan can achieve much more through joint efforts. For example, we have an agreement on the delivery of the first small hydro plant to be built in the Medeu Valley and secure sustainable supply of electric power to the Medeu sports facilities.

At the moment, our experts are surveying the site and preparing site plans. As every site has its peculiarities, we already have a specific equipment offer.

There are many examples of our cooperation under the existing contracts.

For instance, we have 5 joint ventures with Kazatomprom to mine uranium in Kazakhstan.

Plans are also in place to expand production at the Ulba Metallurgical Plant.

Besides, we intend to supply isotopes to Kazakhstan (including those for medical purposes). Our projects for Kazakhstan also include construction of sterilization centers for medical instruments and agricultural produce. These are the facilities meant to improve local sanitary standards, specifically in terms of foodstuffs and health care quality.

energyandecology.com

Issue 5 June 2017

Energy

Energy efficiency in Bosnia and Herzegovina and energy efficiency without achieving it is nothing but a waiver or saving energy at the expense of comfort, which is not the goal.

Industry

Author: Nihad Harbas, Energy and climate change consultant Are end users still wasting energy?

Specific energy consumption of heat energy and electricity is still quite high in Bosnia and Herzegovina compared to developed and some developing countries.

Proof for that is the specific energy consumption in the country in various sectors such as building sector, industry and other ones. this being supported by the indicators (kWh/m2year, kWh/ person; kWh/kg product, etc.). The building sector, which accounts around 50% of total final energy consumption in Bosnia and Herzegovina, consumes around 160-180 kWh/m2 of heat energy annually, which is three to four times more than in developed countries and emerging standards (i.e.

Energy Performance Building Directive whose provisions BiH lowered in its legislation at the entity level). The reason for high consumption lies in the fact that the building sector in BiH is collapsing as the residential and non-residential buildings were built at the times of relatively low energy prices, no concerns about costs and energy characteristics of the buildings.

Overview of the building sector in BiH As a result of this situation in BiH, residential and non-residential buildings have extremely large glazed areas with high coefficient of heat transfer – “U” value (single or double-glazing), facades with no insulation and large amounts of damage, oversized and unbalanced heating/cooling systems without regulation, etc. All of this leads to high heat losses during heating season or gains during summer. Efficiency of the devices for converting energy are very low and devices are susceptible to the human factor, which increases energy consumption and costs. Manual control of thermo-technical systems is strongly represented in BiH, where human factor stongly influences energy consumption.

The solution is in automation.

In addition, thermal comfort is not achieved, 10

Industry in BIH is not so much developed, and the sector accounts about 25% of energy consumption. However, BIH companies are very energy intensive, which means they are spending a lot of energy per unit of product (kWh/kg).

Consequences These facts indicate that there is still high specific energy consumption in all sectors in BIH, resulting in high costs, and point to the fact that the potential for savings is very high.

The conclusion is that energy consumption in Bosnia and Herzegovina has increased.

This primarily refers to the last decade. A further increase in energy consumption is predicted in the coming period.

Consumption growth is expected, but the rational use of resources and energy is something that is growing concern in BIH. From an economic point of view of consumers, the fact that energy prices are accompanied by an increase in energy consumption is very unfavourable. With tendency of growth in energy prices and energy it is more than reasonable to devote greater attention to energy saving options, and thus reduce costs and reduction of greenhouse gases, i.e. mitigating climate change, when it comes to global level.

How much does energy price in BiH affects the awareness of users?

The price of energy is a very important factor in the economic and financial calculations of energy efficiency projects planning and implementation. High energy prices are one of the main reasons for increased applications of energy efficiency measures and faster cost effectiveness or shorter period of return on investment.

Overview of the prices of energy in BiH (Table 1.) clearly shows that the most economical heat is achieved by using solid fuels, mainly firewood, coal, briquettes and pellets. Using this resources, a significant financial savings in the implementation of energy efficiency measures cannot be achieved, because the population in the country is still not motivated to implement energy efficiency measures. Where more expensive fuels are used, higher profitability can be achieved (period of return in a shorter period of time; 3- 5 years), and with that energy efficiency measures can be implemented.

The price of electricity for households in Bosnia and Herzegovina (2.5 to 5.0 MWh of annual consumption) in 2015 amounted to 0.16 KM/kWh, and in industry (500-2000 MWh of annual consumption) 0.12 KM/kWh, while, for example in Sweden during the same period the price for households was 0.36 KM/kWh, and for industry 0.13 KM/kWh. These figures show that the industry in the developed countries, such as Sweden, sets as a priority, because the costs of energy in industrial enterprises are one of the keys for growth, development and sustainability of the sector. Developed industries will employee people who will later be able to pay slightly higher energy costs due to higher unit price for households. On the other hand, households, and end users will have more incentive to save energy and costs by implementing energy efficiency measures.

District heating system in BiH District heating systems in BIH represent a special aspect of energy. Over 80% of the housing stock that is consuming thermal energy from a district heating system, is paying energy costs with a flat rate or per m2 of heated area. This means that public or private companies delivering thermal energy are acting on the principle of production and delivery of energy (MWh) and “tariff system” payment on KM/m2.

Approximately 20% of the housing sector in BiH connected to the district heating system, pays energy according to the consumption where individual heating plants have their own tariff rates.

What is missing is the definition or creation of tariffs delegated from higher levels of government. A unique Law on the production, distribution and supply of heating energy needs to be established.As a precondition to motivate end users to save energy for heating is to allow payments per consumption, which is clearly defined in EU directives. Payment for consumed thermal energy does not mean the consumer will be paying less; it means the consumer will be paying according to the consumed amount of energy. For example, there are public buildings where children spend their time or infirm persons, and where thermal comfort cannot be achieved. This means that the temperature of the interior space should be at 21/22 °C (depending on the purpose of the building), but due to the above facts, this temperature cannot be achieved, it remains at 16/17 °C. The implementation of energy efficiency measures on the subject building could have a so-called rebound effect. energyandecology.com

Issue 5 June 2017

Energy

GlassPoint on a roll in Oman standard steps and then executed in a continuous sequence. Specialised teams move from block to block completing a specific task then relocating to the next. For example, one team is solely responsible for glazing the glasshouse, whereas another team is skilled in mirror installation. Each stage of the process optimises expertise to speed deployment, control costs and ensure consistent quality.

Sourcing specialised materials can also lead to solar project delays, but because we use mass-manufactured components produced all over the world we've been able to successfully reduce our ramp-up period for Miraah. This also helps us achieve economies of scale early on and reduce costs.

Rod MacGregor, president and CEO of GlassPoint Solar speaks about the firm's growing success in Oman with its solar EOR technology and how they can help Oman secure more gas.

What is the latest status of the 'Miraah' solar project?

We've been moving forward quickly on Miraah since we announced the deal with PDO last summer. In November, we broke ground ahead of schedule and just recently completed the site preparations and grading where the first glasshouses will be constructed.

This plot of land spans more than 300,000 square meters. A jog around the perimeter is about 2 km. We're now starting on the foundation work, and will be drilling 5,000 holes for the support beams for the glasshouse structures.

We continue to press forward ahead of schedule and are on track to produce first steam in 2017.

What are the main hurdles you face in creating a commercial-scale solar plant?

GlassPoint's technology is deployed in standard blocks, which overcome many of the challenges companies face when deploying large scale projects. Rather than building a larger glasshouse, we simply build more copies of the same thing. Our standard blocks can be replicated from one to several hundred, which allows for more flexible siting and faster deployment times.

We've adopted a "production line" approach for building Miraah, a successful method applied by the oil and gas industry for large-scale drilling projects. The construction process is broken into 11

Another common challenge as companies grow to execute large projects is finding a team with the right expertise. Fortunately, Oman has fantastic talent, and we've put together a very strong team with experience in heavy oil, project execution and technology development.

Since announcing the project in July, we've grown our local team significantly and are proud to have achieved over 50 per cent Omanisation in record time.

On the technical side, one of the main challenges of deploying solar in the Middle East has been dust and sand that is common throughout the region. In this desert environment, daily washing is required. For a project the size of Miraah, it is both impractical and cost prohibitive to rely on manual cleaning labour. That's one of the reasons we brought the solar collectors inside a glasshouse and use an automated washing robot that runs each night to keep the glass clean.

The glasshouse enclosure also allowed us to avoid many of the high costs associated with traditional solar thermal technologies designed for electricity generation. For example, the foundations for exposed solar collectors require expensive steel and concrete structures to withstand peak wind loads. In our enclosed trough design, only the outside glasshouse wall needs to be reinforced against the wind. As a result, we use much less material than older solar designs, reducing the capital cost of our system.

Why do you feel it is such an important project for Oman's oil and gas industry?

Oman is widely recognised as the regional leader in oil and gas innovation. Now, it is the first country in the world to realise the

value of deploying solar energy to maximise its oil and gas resources. Miraah is not a small side project, PDO is deploying solar at an unprecedented scale. Once complete, Miraah will be among the world's largest solar plants of any kind. This is a testament to PDO's leadership and commitment to technological advancement.

Today, more than 20 per cent of Oman's gas is consumed at the oilfield. The upstream use of gas will continue to increase as Oman develops more of its heavy oil fields and deploys more EOR. Solar is a longterm solution to achieve their energy and economic diversification goals.

When Miraah is complete it will generate an average of 6,000 tons of solar steam daily for oil production, saving 5.6 trillion BTUs of natural gas each year. The saved gas can be exported generating new revenue for the country or used to fuel higher value applications. More gas is needed for water desalination, power generation and feedstock for new industries ranging from petrochemicals to building materials. If more gas was available, then new industries can be created. Each new factory would have its own direct employees and its own supply chain, which would in turn generate employment and increased economic activity. This will support the country's efforts to diversify and grow the economy.

Take power generation as an example. The gas saved by Miraah could provide residential electricity to a small town of 209,000 people in Oman. Of course, the importance of solar cannot be discussed without looking at the environmental benefits associated with harnessing the sun's energy instead of burning fuel. Miraah will reduce CO2 emissions by over 300,000 tons annually, which is equivalent to taking 63,000 cars off the road permanently.

Miraah also has the potential to generate significant value for Oman by creating new opportunities in supply chain development, manufacturing capability, and employment and training. Experience with solar EOR will eventually transfer to other energy-related sectors.

GlassPoint's vision is to create a worldclass solar energy industry in Oman building on its already successful oil and gas energy business. We believe this is just the beginning of a long and fruitful partnership with Oman.

energyandecology.com

Issue 4 May 2017

Energy

ISCAR Drilling for Profit with SUMO3CHAM The entire machining process becomes much easier as the cutting forces are spread across 3 cutting edges, the drilling process is more stable and the penetration into the part's material is more balanced. Thus, users can work up to twice as fast, as the feed per tooth can be increased significantly. Alternatively, users can maintain the same feed per revolution as with a two flute drill and achieve much longer tool life.

The SUMO3CHAM clamping, which relies on 3 points of positioning, provides high levels of repeatability when replacing the drilling head.

The global metalworking industry is driven by the relentless progress of highend technologies that are becoming ever more sophisticated. The challenging requirements of advanced production equipment demands the provision of 'out of the box' advanced machining solutions.

Innovative cutting tools release the latent productive capability of modern machine tools and deliver enhanced profits to users.

In order to comply with market demand, ISCAR recently exhibited its next generation, advanced indexable drill and further extended its comprehensive product portfolio with the launch of SUMO3CHAM – an advanced three flute indexable drill. The innovative design of the SUMO3CHAM raises users manufacturing productivity to new levels by reducing machining cycle times by up to 50% when compared to the conventional two flute drills.

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

Three radial and 3 axial stoppers secure the drilling head and ensure a reliable drilling process in high feed machining environments. Furthermore, due to its sharp edges and the low axial force it applies, the SUMO3CHAM is very efficient when drilling a through-hole when the drill breaks through a slanted surface, also creating fewer burrs on the hole exit. Since the material work hardening is low, a reamer or a tap which may be used for a subsequent operation will gain from extended tool life and accomplish improved results. The unique geometry of the SUMO3CHAM selfcentering head shapes the produced chips optimally to allow smooth evacuation throughout the 3 high helix polished flutes.

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

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

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

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

"The combination of the self-centering geometry, along with a robust and accurate clamping system results in SUMO3CHAM providing ultimate performances relating to hole cylindricity, roundness and enhanced productivity.

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

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

ISCAR is the largest of the 15 companies comprising the IMC (International Metalworking Companies). Together, they supply a dynamic comprehensive line of precision carbide metalworking tools. These companies produce a wide range of carbide inserts, carbide endmills and cutting tools, covering most metal cutting applications.

IMC also provides engineering and manufacturing solutions to major industries throughout the world. Many innovative products, designed specially for customer requirements, have made the IMC a world leader in the major manufacturing industries such as automotive, aerospace and die & mold production.

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

energyandecology.com

Issue 5 June 2017

Energy

Janez Kopac, Director of Energy Community, Ukraine:â&#x20AC;?In the area of energy efďŹ ciency Ukraine did almost nothingâ&#x20AC;? improved? What should be changed?

Is subsidy monetization necessary?

How is Ukraine doing in terms of implementing the energy market reform and meeting the EU requirements?

Ukraine is well advanced in gas sector reform, having adopted the EU Third Energy Package compliant Law on Natural Gas Market, which entered into force in October 2015. Only one crucial point is still missing: the unbundling of Naftogaz.

The Electricity Market Law, which is a year and a half in delay, is now awaiting adoption by the Verkhovna Rada, which may happen before the summer. All the necessary secondary legislation for the law to be implemented in practice has already been prepared.

However, the Law on Independent Energy Regulator has not been adopted yet and this represents a huge barrier for genuine market oriented reforms in both the electricity and the gas sectors.

In the area of energy efficiency, Ukraine didn't do almost anything and resists adopting any reform measures and thus respecting its obligations under the Energy Community Treaty.

How does the European Energy Community assess legal acts related to the Law of Ukraine "On the Gas Market" (Gas Network Codes, etc.)?

Are the documents approved by the National Commission for Energy, Housing and Utilities Services Regulation the most preferable from the point of view of the European Energy Community?

The whole set of secondary legal acts (around 25 of them) was not adopted in its entirety. Of those adopted, many (i.e.

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Network Codes) include some provisions which are not completely compliant with the Gas Market Law. The Secretariat has assessed the acts and sent its analysis pointing to the cases of non-compliance to the National Commission. We hope that the acts will be corrected soon.

Ukraine's government in April fixed a new ceiling on gas prices for households. The respective decree proscribes a formula similar to the one used on the NetConnect Germany (NCG) hub. To what extent does this approach match practices and legislation in the Energy Community?

What recommendations would you make on this issue?

Yes, this so-called public service obligation act was designed together with the Energy Community Secretariat and is complaint with the Energy Community Treaty and its legal framework. It was conceived as part of the Gas Market Law in order to allow for a smooth transition from artificially low regulated prices for households to market prices in a two years' time (2017). Actually, it is quite an advanced approach, which even some EU Member States with significant gas production have not yet introduced (for example Romania where household prices are still heavily regulated).

In the light of the decision to raise gas and heating prices for households, subsidies for unprotected population groups are crucial. Subsidies, however, are not always designed to increase energy efficiency, and may be related to corrupt schemes as well. How do you view the present subsidy payment system in Ukraine? How it could be

The Secretariat is not very familiar with the details of the subsidy schemes in Ukraine.

The Law on Natural Gas Market has tasked the Cabinet of Ministers to determine the criteria for vulnerable customers, their categories and order and volumes of support. To our knowledge, this was done last autumn by using the existing (but improved and updated) general social protection scheme. We have been informed by the World Bank in Ukraine (supporting this scheme for many years) that improvements of the social protection scheme aimed to include lower income household categories (by abolishing the share of income spent for energy as input for defining the support, according to which more middle income households were covered by the support scheme).

The social protection scheme is rather general, not specifically targeting the energy sector as such and not focusing in particular on the promotion of energy efficiency.

What assistance can the European Union and the European Energy Community provide to Ukrainian households to increase energy efficiency and cut energy bills?

The first step is for the Ukrainian authorities to adopt legislation related to energy efficiency issues.

Two draft laws (on Energy Performance of Buildings and Heat Metering) were finalized long ago by experts from different Ukrainian ministries with the support of the Energy Community Secretariat. A draft Energy Efficiency Law was drafted by the Secretariat a year ago but has failed to be discussed by the Ukrainian authorities and submitted for adoption.

Despite being an international obligation of Ukraine, the responsible ministry and government resist adopting any legal measure related to energy efficiency. Two of the draft laws are even a condition for the disbursement of EU macro-financial assistance amounting to EUR 600 million. It seems that Ukrainian authorities rather reject generous financial support than adopt a law that would protect Ukrainian customers. Energy efficiency is common sense, but not in Ukraine.

energyandecology.com

Issue 5 June 2017

Energy

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Issue 5 June 2017

Energy

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Issue 5 June 2017

Energy

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energyandecology.com

Issue 5 June 2017

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Ecology

Energy efficiency requires huge investment energy efficiency in buildings will create new jobs and help the much-needed reindustrialization of Europe.

On the other hand, according to the impact assessment provided by the Commission, 40% target will also bring much higher investment costs in comparison to 30% target.

The impact assessment is based on an economic model and the Commission has probably not taken into account the things that I talked about at the beginning. It relies only on the estimation of market reaction and the other two stages of energy flow are probably missing. I think we would need a new analysis or a new model. Getting back to your question – obviously, there will be a need for huge investments, but it will pay back.

I do not exclude the 40% energy efficiency target on condition that all three stages of the energy flow are included, Adam Gierek told EURACTIV Czech Republic.

Prof. Adam Gierek is a Polish Democratic Left Alliance lawmaker (S&D). He is the rapporteur on the revised Energy Efficiency Directive that the Commission proposed within the Clean Energy Package in November 2016.

You are the Parliament’s rapporteur for EED. A majority of MEPs have already called for a more ambitious policy than the European Commission’s proposal.

Do you support the 40% energy efficiency target?

Calls for a higher ambition in the energy efficiency target are based on the climate agreement from COP21 in Paris, because efficient use of energy results in less CO2 emissions. As you already said, the Parliament voted in a non-binding resolution for a 40% target. The Commission proposes 30%. In the draft report on the EED revision, I have come with the proposal for a 35% target. I think this question should be subject to further debate.

What would make you support the higher target?

I do not exclude a more ambitious solution on condition that all three stages of the energy flow are included in the energy efficiency policy, from the primary energy to the energy conversion and further to the final use of energy at the market. If such holistic approach is adopted, I am ready to support 40% target. I think it is realistic and much needed, as the improvement of the whole energy system would help us reduce 19

CO2 emissions significantly.

What exactly does it mean when you say that “all three stages of the energy flow will be included”?

If you are asking for some examples, we can look at the efficiency of energy conversion in coal power plants which is lower than 40%. That means 60% of primary energy is lost at the production stage. It is even worse in nuclear power plants. So there is a big potential for a better use of primary energy. There are huge losses at the stage of energy transmission as well. At high-voltage power lines it can be even 40% or 60%, depending on the distance. Talking about the market, housing sector has the biggest potential for savings.

Two-thirds of the buildings in the EU have not been renovated yet.

Do you see differences in the energy savings potential of different sectors?

Some people say, for example, that it will be hard to achieve new savings in industry.

Of course, there are differences. The potential in buildings is the easiest to realise, it can be fulfilled very quickly and also brings the benefit of lowering energy poverty. But it is also important to say that the potential differs across Europe because of climate conditions. In Central Europe, you can use even more than 200 kWh per square meter per year in a house which is not insulated. In an insulated building it may be around 40 kWh, and in passive houses it can be even 20 kWh or less. These are huge reserves. Of course, in Spain, Italy or Malta, it is something completely different.

But generally speaking, we can gain a lot in a short time and moreover, improving

You proposed that the energy efficiency target is expressed in primary energy consumption. This is one of the most controversial topics among the member states. Could you explain your position?

To meet the Paris Agreement obligations, the use of primary energy is an important indicator. The Commission talks about a target that is expressed in two ways – primary and final energy consumption. With such an approach, conversion of the data reported by various member states might be complicated. It is important that there is just one way of reporting. I like to use the example of an apple and an apple strudel.

The apple is the primary energy – but the strudel is not anymore a fruit, it is a processed apple. We need to compare the efficiency of different energy mixes based on a common indicator, which is the socalled primary energy factor.

I am an advocate of a holistic approach.

That is for example why I also think that the transport sector should always be included in the calculations of energy saving according to the Article 7 of EED and it should not be deleted in the frames of so called flexibility – which is a position promoted by Germany, for example. We should always think about energy efficiency in electricity sector, transport and housing – these three pillars should be always present. This is also why it will be better to convert all reporting into primary energy use, so that there is no confusion.

energyandecology.com

Issue 5 June 2017

Ecology

5 Clean Energy Innovations That Could Transform Our World on the smart grid bandwagon in 2007 and set up a taskforce to ensure a synchronized adoption of the new technology.

The process has been slow, but small communities have begun “microgrid” projects that will allow consumer demand to drive implementation.

4. Tidal turbines:

Innovations in energy storage, smart grid, and electricity generation technologies will affect every part of the source-to-consumer supply chain for powering the planet.

Energy storage tech improves the viabilities of wind and solar power – two energy sources that remain cost prohibitive due to expenses related to batteries that would store generated energy. Smart grids will regulate the movement of energy throughout a city or state, insuring the areas from crippling blackouts. Developments in electricity generation make sure we make the most out of fossil fuels and other energy sources to improve efficiency.

What follows is a survey of progress in the development of five different technologies that promise to change the face of the energy industry in the next 20 years.

1. Fuel Cell: Truck manufacturers Kenworth, Toyota, and UPS have begun investing in fuel cell technologies, which would allow transport vehicles to run on hydrogen and oxygen, releasing only heat and water as emissions.

Modern hydrogen production still requires copious fossil fuel use, but the process could soon be powered by renewable energies, making fuel cell vehicles extremely clean alternatives to current trucking solutions.

In Europe, fuel cell production facilities will begin pumping out 50,000 fuel cell stacks by the year 2020, making United Kingdom20

based Intelligent Energy the market leader in bringing the green technology to the masses. “Hydrogen fuel cell powered vehicles are available now, but to continue to drive customer adoption, we need to ensure future fuel cell stacks are robustly industrialised and remain cost competitive in the future,” said the company’s Manufacturing Head Richard Peart.

2. Lithium-air batteries: These storage units, also known as Lithium-oxygen fuel cells, have been gestating in scientific labs all over the world since the beginning of electric vehicles.

Science Daily says two instabilities in the technology’s current form have prevented it from hitting mass markets: unpredictable short circuiting and speedy loss of battery power. Cornell University recently tackled the second capacity face problem, meaning we could be just one witty solution away from long-range electric cars.

3. First Generation Smart Grid: The first step in making a reliable and responsive smart grid system requires the installation of smart meters in every household and building. The new meters will send usage information in real time to your energy provider, allowing adjustments in availability to fluctuate according to the area’s latest needs.

So far, countries like the United Kingdom are having trouble adjusting the technology to fit the national infrastructure and business norms. The United States jumped

Much like wind turbines, these underwater pinwheels harness energy from wave movement. This green energy has had small-scale success so far, but objections from fishermen, as well as accidents, have set the technology back in California – tidal energy Ground Zero – in recent months. But the science behind tidal energy continues its march forward. Scotrenewables Tidal Power announced the launch of a new lowcost turbine off the coast of Scotland. It’s also the “largest and most powerful” turbine of its kind in the world with a power generation capacity of two megawatts, according to its manufacturers. A retractable arm gives the facility a separate transport mode and an operation mode, which allows easy portability and an impermanence that would please local fishing industries.

5. Space-based Solar Power: Solar power captured from-the-beyond has been a sci-fi concept since the 1970s. The high cost of transporting the panels and other equipment into space has prevented the idea from becoming fruitful for commercial energy production. In addition, the transfer of generated energy back to Earth has been a concern.

Solar power panels installed on the ground connect to the local power grid to deliver their harnessed goods, but it is comical to imagine a satellite in space hooked to the planet via cable for efficient energy delivery, prompting scientists to develop wireless energy transfer technologies akin to the iPhone 8’s anticipated wireless charging feature. None of the existing methods have proven to be feasible on a massive scale.

Suggestions are welcome.

The advances mentioned above are interrelated: progress in the lithium-air battery efforts will pave the way for the success of electric cars, which could be recharged with energy hardheaded from the tides or spacebased solar power. It's one small step for science, one giant leap for green energykind.

energyandecology.com

Issue 5 June 2017

Ecology

Focus on Carbon Removal a ‘High-Stakes Gamble’ bioenergy and carbon capture and storage, or BECCS — could create widespread food insecurity because it could take half of the world’s farmland out of production.

BECCS relies on converting agricultural areas and other land to vast new forests, which absorb atmospheric carbon in tree trunks and roots. The trees would be harvested for biomass energy and burned in power plants. The resulting carbon emissions would be captured and stored permanently — a method some scientists believe could be worse for global warming than burning fossil fuels.

The manmade emissions fueling global warming are accumulating so quickly in the atmosphere that climate change could spiral out of control before humanity can take measures drastic enough to cool the earth’s fever, many climate scientists say.

The most important way the earth’s rising temperature can be tempered is to reduce the use of fossil fuels. But scientists say another critical solution is to physically remove greenhouse gases from the atmosphere — something called “negative emissions” — so that carbon dioxide and rising temperatures could peak, and then begin to decline over time.

Many of the assumptions underlying the landmark Paris Climate Agreement rely on the idea that humans will be actively removing carbon from the atmosphere late this century because reducing emissions won’t be enough to prevent global warming from exceeding levels considered dangerous.

But that assumption relies on technology that hasn’t been proven to work on a global scale. Removing carbon dioxide from the atmosphere on a scale large enough to slow global warming is untested, and the technology is in its infancy. The effect it could have on the earth is largely unknown, and some scientists warn that some of the consequences of using negative emissions technology could be catastrophic.

Because of all those unknowns, it’s critical that humanity doesn’t bet its future on negative emissions, Stanford University Woods Institute for the Environment scientists Katharine Mach and Christopher Field write in a paper published Thursday in the journal Science.

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The paper argues that both negative emissions technology and a commitment to quickly cutting carbon dioxide emissions as much as possible are critical to solving the climate crisis.

Carbon concentrations in the atmosphere must not exceed 450 ppm if global warming is to be prevented from exceeding a level considered dangerous by most climate scientists — 2°C (3.6°F), the primary goal of the Paris Climate Agreement. The problem, though, is that humanity is quickly running out of time to limit more warming. The atmosphere blew past the 400 ppm mark last September and it’s on a trajectory to pass 450 ppm within 22 years.

Most of the Intergovernmental Panel on Climate Change models underlying the Paris Climate Agreement assume some level of large-scale carbon removal will be occurring in the coming decades, but nobody knows exactly how that will be accomplished.

Ben Sanderson, a climate scientist at the National Center for Atmospheric Research who is unaffiliated with the paper, said the study shows that carbon removal shouldn’t be treated as a cure-all for climate change because the future of humanity can’t rely on untested technology.

“The major risk is that the planned-for CO2 removal might never come to pass — and this is a very real concern,” Sanderson said.

The paper warns of dire consequences if the effects of negative emissions technology aren’t fully accounted for before they’re implemented.

Chief among the many other negative emissions technologies being developed include expanding forests globally to store more carbon naturally, and building hundreds or thousands of facilities that directly remove carbon from the atmosphere and store it permanently.

Those facilities, called “direct air capture” plants, have never been built on a large scale and scientists say they would require a large amount of energy to operate and many thousands of them would have to be constructed to make a dent in global warming.

The paper criticizes the idea of peak and decline — the theory that carbon removal could bring about a peak in global temperatures and then begin to cool the planet. That may be risky because the costs and consequences of global cooling following a temperature peak are not well understood. Some of the effects of climate change such as sea level rise and melting polar ice sheets can’t be reversed as the globe cools.

Ecosystems that will have begun to adapt to higher global temperatures as the world warms may struggle to adjust to the global cooling that peak and decline envisions.

Scientists haven’t done much research on what the effects might be, Field said.

Sanderson said that peak and decline is unlikely within this century, but much more likely in the next century or beyond because changes in the climate system are hard to turn around even as atmospheric carbon concentrations decline.

Field said that when all the unknowns about negative emissions are considered, the best strategy to solve the climate crisis is to both develop carbon removal technology and work as quickly as possible to cut emissions today.

For example, one of the negative emissions technologies carbon-removal proponents often cite as the most promising — energyandecology.com

Issue 5 June 2017

Ecology

Experts reject Bjørn Lomborg's view on 2C warming target Overall, Howard said, the 2C limit was “a wise investment when combined with investment in energy R&D and adaptation”.‘Global climate policy has failed’.

Low emission technologies are ready “Since 2010, coal-fired electricity generation growth has increased more rapidly than non-fossil sources combined,” the Galiana assessment paper said.

Assumptions about the availability of lowcarbon technology “determine the estimates of the world’s ability to costeffectively achieve given atmospheric concentrations of greenhouse gases,” it said.

Photograph: Soeren Bidstrup/EPA

Experts have challenged a claim by Bjørn Lomborg’s Copenhagen Consensus Centre that holding global temperature rises to 2C is a poor investment.

In 2015 the education department abandoned plans for Lomborg to set up an Australian Consensus Centre, but gave the Copenhagen centre $640,000 to support its Smarter UN Post-2015 Development Goals project.

The project assessed dozens of development goals and found investment in keeping global temperature rises below 2C would return less than $1 for every $1 spent, which it rated “poor” compared with other possible investments.

The claim was based on a 2014 assessment paper by Isabel Galiana. The finding on the 2C limit was one of the project’s most controversial, and has been cited in the political debate about whether such targets are worthwhile, as concerns are raised that president Donald Trump will lead the United States out of the Paris agreement.

The report said the 2C target was “relatively ineffective or there is large uncertainty in the benefit-cost ratio” because it was “extremely costly due to a lack of lowcarbon energy sources”.

But academics have now said Galiana’s assessment underestimated the harm caused if atmospheric carbon dioxide exceeded 450 parts per million, and has been superseded by advances in renewable energy technology and the Paris climate agreement.

And Galiana herself has conceded “the 22

paper does not explicitly undertake a benefit/cost analysis of keeping climate change to two degrees” and that a 2C target might be justified if “tipping points” of accelerated environmental damage were considered.

Assessment ‘misinterprets’ the papers it cites Climate economist Peter Howard, the e c o n o m i c s d i r e c t o r a t N e w Yo r k University’s Institute for Policy Integrity, said the assessment paper provided “insufficient reasons for abandoning a 2°C limit”.

Kylie Catchpole, an engineering academic with expertise in solar cells at the Australian National University, said the outlook for renewables was “rapidly changing”.

Her colleague Matthew Stocks said the availability of low-emissions technology was “no longer an issue”.

“More renewable electricity capacity was installed in the last three years than fossil fuels. Renewables are rapidly growing and fossil fuels are slowing,” Stocks said. “This is not the result of major breakthroughs, just continued scale and competition driving down the costs of wind and [photovoltaics] in particular.

Howard said the assessment “misinterprets the main papers that it cites in its defence – which actually demonstrate that immediate climate action is critical and that 450ppm is optimal under realistic scenarios”.

Catchpole, who said a 2C target was “challenging but achievable”, pointed to dramatic reductions in the cost of photovoltaics, down from US$0.70 a watt in 2014 to about $0.45 in 2016, and of batteries “by about a factor of two over the last five years” – both trends that are expected to continue.

One such paper, by Derek Lemoine and Haewon McJeon in 2013, used a breakeven point based on economic damage estimates in work by Richard Tol in 2009 that have since been revised upwards in 2015 to “nearly double the value”, according to Howard.

Stocks attributed development of lowemissions technologies to “artificial markets” – such as pricing greenhouse gas emissions or mandating a renewable energy target – and said “research and development alone would not have done this”.

In particular, it “omits various climate impacts including tipping points – [which] implies an underestimation of the benefits of the 450ppm goal”.

Low-carbon technology still a small share

Howard said this and other papers cited concluded the 450ppm target was costbenefit justified.

Lemoine said his paper – relied on by the CCC’s assessment – did not seek to estimate the benefits of reaching a 450ppm target, but rather the “sensitivity to assumptions about these benefits”.

Galiana told Guardian Australia her paper had not explicitly undertaken a “cost-benefit analysis of keeping climate change to two degrees”. “The two degree goal is not particularly useful in developing policy except as an aspirational goal. ”Galiana said achieving the 2C target in the next 50 years “requires an unprecedented reduction in emissions to well below current levels”. energyandecology.com

Issue 5 June 2017

Ecology

The end of coal: EU energy companies pledge no new plants from 2020 “The debate about coal is over,” one industry insider told The Guardian.

“This is the only way that we can go forward with decarbonisation. But it would be good to see a phase-out of existing coal plants.”

The energy utilities’ initiative faced initial resistance in Germany which is relying on coal to bridge a move away from nuclear energy to renewables under the Energiewende transition.

In the end, though, only Poland which depends on coal for around 90% of its electricity and Greece, which still plans new coal plants, bucked what is becoming a global trend.

Companies from every EU nation except Poland and Greece sign up to initiative in bid to meet Paris pledges and limit effects of climate change.

Coal has been central to Europe’s development, powering the industrial revolution, trades union history, and even the EU’s precursor, the European coal and steel community.

Europe’s energy utilities have rung a death knell for coal, with a historic pledge that no new coal-fired plants will be built in the EU after 2020.

But it also emits more carbon dioxide than any other fossil fuel, plus deadly toxins such as sulphur dioxide, nitrogen dioxide, and particulate matter, which are responsible for more than 20,000 deaths each year.

The surprise announcement was made at a press conference in Brussels on Wednesday (5 April), 442 years after the continent’s first pit was sunk by Sir George Bruce of Carnock, in Scotland.

National energy companies from every EU nation – except Poland and Greece – have signed up to the initiative, which will overhaul the bloc’s energy-generating future.

A press release from Eurelectric, which represents 3,500 utilities with a combined value of over €200bn, reaffirmed a pledge to deliver on the Paris climate agreement and vowed a moratorium on new investments in coal plants after 2020.

“26 of 28 member states have stated that they will not invest in new coal plants after 2020,” said Kristian Ruby, Eurelectric’s secretary-general.

“History will judge this message we are bringing here today. It is a clear message that speaks for itself, and should be seen in close relation to the Paris agreement and our commitment to provide 100% carbonneutral electricity by 2050.”

“Europe’s energy companies are putting their money where their mouths are,” he added.

23

Wendel Trio, the director of Climate Action Network Europe, hailed the new move as “the beginning of the end for coal”.

“It is now clear that there is no future for coal in the EU,” he said.

“The question is: what is the date for its phase out in the EU, and how hard will the coal industry fight to keep plants open, even if they are no longer economically viable?”

The coal industry though was sceptical about the utilities’ announcement. Brian Ricketts, the secretary-general of the Euracoal trade group said: “Steam engines were replaced by something better, cheaper and more productive – electric motors and diesel engines.

When we see a new energy system – with lots of energy storage – that works at an affordable price, then coal, oil and gas will not be needed. In the meantime, we still rely on conventional sources.”

New coal plant constructions fell by almost two thirds across the world in 2016, with the EU and US leading the way in retiring in existing coal capacity.

The move is also in line with a pathway for meeting the 2°C target laid out by climate scientists last month, as a way of limiting future stranded asset risks.

Europe will have to phase out all of its coal plants by 2030 or else “vastly overshoot” its Paris climate pledges, climate experts say.

António Mexia, the CEO of Portuguese energy giant EDP and president of the Eurelectric trade association, said: “The power sector is determined to lead the energy transition and back our commitment to the low-carbon economy with concrete action.”

“With power supply becoming increasingly clean, electric technologies are an obvious choice for replacing fossil fuel based systems, for instance in the transport sector to reduce greenhouse gas emissions.”

“The challenge for policy makers in the next two years will be to target the political instruments, ensure that they are complementary decarbonisation and electrification at the same time,” said Ruby.

Ruby called for a ratcheting up of the cap on CO2 emissions under the EU’s emissions trading system, to speed the transition to a low carbon economy.

Renewable industry sources also welcomed the news, albeit with the caveat that it would allow continued new investments in the industry for another three years. energyandecology.com

Issue 5 June 2017

Ecology

World’s First Commercial CO2 Capture Plant Goes Live greenhouses, which will use 900 metric tons of captured carbon to grow crops each year.

The captured carbon dioxide could also be used to manufacture transportation fuel, carbonated soft drinks and other products, Gebald said.

In order to meet the goal of removing the equivalent of 1 percent of annual global carbon dioxide emissions, 250,000 similar direct-air capture plants would have to be built, Gebald said.

Future direct-air capture plants will cost up to $400 per metric ton of captured carbon dioxide to operate, Gebald said, with carbon sequestration adding an additional $10-$20 to that cost per ton.

Climeworks, which will begin operations at a facility near Zurich, Switzerland, plans to compress the CO2 it captures and use it as fertilizer to grow crops in greenhouses.

such as British Columbia-based Carbon Engineering, are also working on direct-air capture plants that will commercially suck carbon dioxide from the air.

The company wants to dramatically scale its technology over the next decade, and its long-term goal is to capture 1 percent of global annual carbon dioxide emissions by 2025.

Sabine Fuss, a sustainable energy researcher at the Mercator Research Institute on Global Commons and Climate Change in Berlin who is unaffiliated with Climeworks, said that the company’s directair capture plant is the first of its kind to operate on an industrial scale.

Along with cutting fossil fuel use to zero, removing carbon dioxide from the air is increasingly seen as one way to stop the long-term buildup of greenhouse gases in the atmosphere. Carbon removal and storage coupled with drawing down fossil fuel use is called “negative emissions.”

Time is running out to perfect the various methods of capturing carbon dioxide and permanently storing it.

Research shows that atmospheric carbon dioxide concentrations will increase to the point that 2°C (3.6°F) of global warming will be inevitable within the next 22 years.

Scientists consider that level of global warming dangerous, and the goal of the Paris Climate Agreement is to stop global warming before that limit is reached.

The technology to remove carbon dioxide from the atmosphere, including planting new forests and building facilities that directly remove and capture climate pollution from the air, is in its infancy.

It has never been tried at a large scale, and nobody knows if it can be used worldwide to remove enough carbon dioxide to slow warming.

The Climeworks plant represents the beginning of an industry that is attempting to perfect the technology. Other companies, 24

“It’s important to note that they will not be permanently storing the CO2 that will be captured,” she said. “Instead, it will be used for greenhouses, producing synfuels, etc.

No negative emissions will be generated.”

Negative emissions can only occur when the captured carbon dioxide is removed from the atmosphere and then locked away forever, she said.

But Climeworks co-founder Christoph Gebald said the company’s carbon capture plant can be used for carbon sequestration.

“Highly scalable negative emission technologies are crucial if we are to stay below the 2°C target of the international community,” he said. “The DAC (direct-air capture) technology provides distinct advantages to achieve this aim and is perfectly suitable to be combined with underground storage.”

Gebald said his team installed 18 carbon dioxide collectors on the roof of a garbage incineration plant outside Zurich. Powered by wasted heat from the incinerator, the collectors use fans to suck ambient air into filters, which absorb carbon dioxide. The filters are heated and the carbon dioxide is removed and piped into nearby

Glen Peters, a researcher at CICERO, a climate research organization in Norway, said he is not closely familiar with Climeworks, but said it will be impressive if the company can meet its goal to capture 1 percent of global carbon emissions, but only if it can be stored.

He said operational costs need to fall to about $100 per ton of captured carbon for the technology to be scalable.

Some carbon removal technology is controversial because some methods involve planting new forests and forcing large-scale changes in the way land is used, possibly displacing people and the farms they rely on to grow their food.

Peters co-authored a paper published last year warning that staking the future only on negative emissions technologies presents a “moral hazard” because they’re unproven, there is a substantial risk that the technology can’t be scaled up, and it may allow policymakers to think that weaning humanity away from fossil fuels is not urgent.

When asked if Climeworks is participating in a morally hazardous climate strategy, Gebald said that scientists are certain that global warming can only be addressed if global carbon dioxide emissions drop to zero.

“We feel there is no moral hazard,” he said.

“The only way we can achieve this is by using all means we have available.”

Both getting rid of fossil fuels and directly capturing carbon dioxide from the air are necessary to solve climate change, Gebald said.

energyandecology.com

Issue 5 June 2017

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OIL&GAS

Outlook for Abu Dhabi 2017 oil industry This isn’t an Abu Dhabi specific challenge; it is one that is important for our whole industry going forward. The advent of new technology means we can no longer just do things the way we always have – we need to innovate and transform to keep up. The millennials and generation z hold the key to unlocking this potentially game-changing trend.

Locally we need to consider how we can stimulate interest in the industry from as early as elementary school level as well as attract students into the technical degrees that underpin the industry. Once they graduate how do we attract them into the oil and gas industry rather than other tempting career paths.

Moving toward independence Once the main player in the ME oil and gas market, Abu Dhabi has not been exempt from the downturn felt across the world due to lower oil prices. However, VP and General Manager at McDermott Middle East – a company who has worked in the UAE since the 1970s - Linh Austin says despite the challenges there is plenty of reason to be optimistic about the future of the local market.

Introduction On a macro level, in 2016 we continued to experience extreme price volatility within the oil market, the long-term impact of which has led to a slowdown in project awards and much tougher competition for available work. In November OPEC members signed the production cut agreement which helped stabilise the market somewhat, but it is still a tougher market than we have been used to.

That said, the Abu Dhabi market is already showing signs of picking back up.

A period of change In Abu Dhabi the oil sector underwent some substantial changes to mitigate the impacts of the lower oil prices, including a reshuffle in the Supreme Petroleum Council as well as leadership changes at Abu Dhabi National Oil Company (ADNOC).

The period of change continues with the initiation of the merger between ADMA, OPCO and ZADCO. Completion of the merger in 2018 is expected to increase efficiency for ADNOC and streamline processes. In the short term, it’s possible that we will see an initial slow down both in 26

terms of work flow and project progress as new systems and procedures are put in place. However, the long-term benefits far outweigh any short-term impact.

Finally, another major industry challenge is ramping up gas production within Abu Dhabi, so the country can rely less on imported gas.

On a company level, the merger is also good news for us as it gives us the chance to work more closely with one entity and will ensure improved and more streamlined communication channels.

At present, the UAE mainly imports gas to generate electricity from Qatar through the Dolphin energy pipeline. Al Hosn Gas is leading the way in terms of gas exploration efforts via gas production from Abu Dhabi’s Shah field which is set to contribute significantly to the energy needs of Abu Dhabi and the UAE for over 30 years. These are predominantly sour gas fields, which we have extensive experience in and so we are well positioned to support them in this shift.

Opportunities ahead Looking ahead, Abu Dhabi aims to significantly increase output over the next five years, and we intend to support their vision by leveraging our concept, FEED and EPCI capabilities.

The challenge and opportunity now, unlike before, is not necessarily bigger and bolder projects, but it is about investing in projects that are more cost-effective. We are coming up with solutions that allow NOC’s like ADNOC to extend their dollar. Some of these solutions are around supply chain but some are focused on helping them sequence their project program. Given our history of providing project certainty and our FEED capability, we can assist in the sequencing of work to optimise the production profile. As we like to say, we bring global expertise to the local market.

Finally, the other consideration going forward is going to be the focus on revitalising and replacing infrastructure in what are aging fields – some of our guys remember installing many of the structures that are out there in the 70’s.

As one of the few EPCI contractors who have been in the region for 50 years, we have performed extensive brownfield work on some of these older fields and know the type of project specific challenges and specialist expertise required to be successful.

All in all, the outlook is positive for the local market and we see plenty of opportunity.

We are looking forward to playing a key role in the future of the Abu Dhabi market.

Attracting top talent The UAE economy is expected to grow by 4 per cent in 2017 and as it grows, one of the key challenges for our industry will be attracting more local talent within the oil and gas sector, as well as top talent from around the world. energyandecology.com

Issue 5 June 2017

OIL&GAS

Bahrain enjoys ‘best deals’ as it propels oil and gas development projects JGC Corp., Yokohama, Japan, to build additional gas pipelines and storage tanks as part of a capacity expansion under way at BNGEC’s and Bahrain National Gas Co.’s (Banagas) shared gas processing project in Bahrain oil field, south of Awali.

The pipeline and storage expansion is due for start-up in October 2018.

Earlier last year, Banagas awarded a $355million lump-sum turnkey EPC contract to JGC for the CGP-III plant, which will have the capacity to process 350 million cubic feet per day (MMcfd) of associated dry gas entrained in state-run Tatweer Petroleum Co.’s increased oil production from Bahrain field.

Bahrain is holding oil and gas development as a priority within its Economic Vision 2030 with refinery expansion, pipeline and LNG terminal projects among the top investments.

The Gulf island state of Bahrain is moving ahead with investments in the oil and gas industry despite a global slowdown as it follows through on Economic Vision 2030, a development plan for improving the lives of its citizens, as well as overhaul power generation and increase oil production to meet future energy demands.

Unlike its neighbours in the Gulf, the Kingdom of Bahrain is a minor oil producer, with only 124.6 million barrels of proven reserves. It also has the lowest levels of oil consumption per capita in the GCC, according to Eni’s 2013 “World Oil and Gas Review.” The country’s oil is developed largely by key state players such as Bahrain Petroleum Company (Bapco), National Oil and Gas Authority (NOGA) and its investment arm, Nogaholding.

Its reserves are held in just one field, the onshore Bahrain Field also known as Awali.

The government relies on oil and gas for nearly 86 per cent of its revenues. Of these revenues, roughly 80 per cent come from the 300,000 barrels of oil per day (bpd) Abu Safa offshore oilfield, which is owned and operated by Saudi Aramco but from which 50 per cent of the revenues are transferred to Bahrain. The remaining 20 per cent comes from Awali, which reached record production levels in June 2015, producing some 56,000 bpd.

Bahrain’s domestic consumption of oil has doubled from 25,000 bpd in 2001 to 50,600 bpd in 2015. On December 10, 2016, Bahrain pledged to cut around 10,000 bpd from its production in 2017 in order to prop 27

up oil prices.

Bahrain is taking a series of steps to expand its capacity to produce and refine oil and gas, mainly through Nogaholding. In March 2016, Nogaholding announced it had signed a US$570 million Islamic financing facility (Murahaba), which will serve to fund oil and gas projects such as Bahrain’s newbuild LNG terminal.

Other projects include the expansion of Bahrain’s Sitra refinery from its current level of 267,000 bpd to 360,000 bpd. With estimates putting the cost of the expansion as high as $9 billion, it will be the largest project ever financed in the kingdom. Sitra currently refines 250,000 bpd from Saudi Arabia’s Abqaiq processing facility, which is fed by the Arabia-Bahrain (AB) pipeline.

Saudi Aramco is currently replacing the old AB pipeline with a new one that will expand capacity from 230,000 bpd to 350,000 bpd and appears on a schedule to open in 2017.

In addition to the expansion of the refineries processing capacity, the project will also see BAPCO establish new petrochemical production units at the site. Bahrain also plans to build a 70 km pipeline to connect the refinery to the Ras Tanura refinery in Saudi Arabia.

“We are lucky coming into the market on the downside as it is a good time to deploy investment. It is a time to buy as contractors are hungry for business, as are suppliers so we can get the best deal,” Bahrain’s Minister of Oil Mohamed Bin Khalifa AlKhalifa said in an interview with Pipeline magazine.

Bahrain National Gas Expansion Co. (BNGEC), a subsidiary of Nogaholding, awarded in June 2016 an EPC contract worth almost $100 million to an affiliate of

Equipped to produce LPG and naphtha using reinjection pressure and excess gas, the plant, once completed, will increase overall capacity at the Banagas-BNGEC gas processing project to more than 650 million Mmcfd.

Banagas currently operates two gas processing trains with a combined capacity of about 300 MMcfd at the site.

Due for startup in September 2018, the CGP-III is one in a series of strategic projects aimed at securing ongoing economic growth and raising the standard of living for the people of Bahrain.

NOGA has awarded three major contracts during 2015 to serve the strategy for improving Bahrain’s oil and gas operations.

These included a $600 million floating LNG terminal project, which will have a floating storage unit, an offshore LNG-receiving jetty, breakwater, and regasification platform; subsea gas pipelines from the platform to shore; an onshore gas-receiving facility; and an onshore nitrogen-production plant.

The project is a build-own-operate-transfer basis as joint venture between NOGA Holding (30 per cent) and a consortium of Teekay LNG Partners LP, Samsung C&T Corp., and Gulf Investment Corp. (70 per cent, combined).

To be equipped with an initial capacity of 400 MMcfd but expandable to 800 MMcfd, the terminal will be owned and operated under a 20-year agreement beginning in third-quarter 2018.

The other projects are a $350 million, 115km oil pipeline from Saudi Arabia to Bahrain and a $100 million gas dehydration plan at Tatweer Petroleum’s Bahrain field.

energyandecology.com

Issue 5 June 2017

OIL&GAS

India's shale gas prospects gas estimates to 187.5 tcf in five basins, namely, Cambay, KG, Cauvery, Ganga & Assam and Assam - Arakan, Central Mine Planning and Design Institute estimated 45 tcf of gas in six basins, namely, Jharia, Bokaro, North Karanpura, South Karanpura, Raniganj, and Sohagpur.

Soon after these estimates, in October 2013, the Indian government approved the policy guidelines for the exploration and exploitation of shale gas and oil by various national oil companies under the nomination regime in their onland Petroleum Exploration License/Petroleum Mining lease areas.Accordingly, under Phase-I of assessment ONGC and Oil India Limited (OIL) have been allotted 50 and 6 blocks, respectively. In Phases II and III ONGC will carry out exploration in 75 and 50 blocks, respectively, while OIL will carry out exploration in 5 blocks each in Phase II and III. ACCORDING TO the BP Statistical Review 2016, India is the third-largest energy consumer in the world after China and the United States. Further, India's energy consumption (growth projected at 4.2% per year by BP Energy Outlook 2035) is forecast to be the fastest among all major economies. During this period, India's increased domestic energy production is expected to fall short of robust energy demand, pushing it to energy imports that could risk its fiscal stability.

To meet its energy requirements at affordable prices while using cleaner fuels, India has decided to reset its energy basket in a significant way, wherein the role of natural gas would be significant. India made the decision to increase its use of natural gas from 6.5% at present to 15% to push towards a gas-based economy. This will accommodate its energy needs while addressing the issue of rising greenhouse gas emissions by using more of the cleanburning fuel.

To meet this objective, increasing the production of domestic natural gas and cheaper liquefied LNG imports has been prioritized by the government of India.

Earlier, the shale gas revolution in the US, together with the precarious situation of India's domestic energy resources, prompted the government to explore unconventional energy resources, such as shale gas, coal bed methane, and gas hydrates in India. Such efforts can now be pushed further to align with India's objective of moving towards a gas-based 28

economy.Recently, while India benefitted from prolonged low oil prices that resulted from the unexpected growth of US shale oil output vis-Ă -vis OPEC's relentless oil production, it is yet to accrue any substantial benefits from the US revolution per se, as none of India's shale reserves have started commercial production.

Under this MoU, the DOS agreed to cooperate with MoPNG in shale gas resource assessment, technical studies, regulatory framework consultations, training, and investment promotion through the exchange of experiences and best practices and through study tours.

Subsequently, several agencies from time to time have made assessments regarding the potential of shale resources in the Indian sedimentary basins. In January 2011, Schlumberger made an initial gas-inplace estimate of 300 to 2,100 trillion cubic feet (tcf) under a shale gas pilot project for Oil and Natural Gas Corporation Limited (ONGC) in the Damodar Valley basin. In April 2011, the US Energy Information Administration assessed risked gas-inplace of 290 tcf with technically recoverable resource of 63 tcf, which was upgraded to 584 tcf in 2013 with additional estimates of shale oil at 87 billion barrels in four basins, namely, the Cambay Onland, Damodar, Krishna Godavari Onland, and Cauvery Onland.In January 2012, the United States Geological Survey estimated 6.1 tcf of technically recoverable shale gas in three basins, namely, Cambay, KG & Cauvery.

Further, while in 2013, ONGC put the shale

According to the Press Information Bureau, so far, ONGC has drilled 20 assessment wells for shale gas and oil. OIL has completed geological and geophysical studies and geochemical analysis in its identified areas besides completing Conventional Core in one well in Rajasthan.

ONGC, in collaboration with Schlumberger, drilled its first R&D well (RNSG-1) in a pilot project near Durgapur in West Bengal in January 2011, which produced shale gas from the Barren Measure formation of Permian age.

Thus, varied estimates for shale gas presence in India calls for extended exploration and assessment, wherein US cooperation would be needed on a continual basis, which could help bring up early commercial production from shale resources in India.However, in India the exploration of shale gas and oil are still at the preliminary stage as 'above ground factors' are expected to delay its commercial production further.

The biggest apprehension in this regard is with the contamination of aquifers due to hydraulic fracturing.In addition, sourcing of water of around 100,000 barrels per well for multi-stage fracking would be a daunting task at places of shale gas reserves, such as Cambay, Gondwana, and KrishnaGodavari, and the Indo-Gangetic plains due to water stress issues.

energyandecology.com

Issue 5 June 2017

OIL&GAS

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

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

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

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

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

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

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

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

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

- Function testing of stationary emission measuring instruments.

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

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

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energyandecology.com

Issue 5 June 2017

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

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

- Immediate access to all relevant wearing parts

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

Diagnosis function 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.

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energyandecology.com

Issue 5 June 2017

OIL&GAS

Gas in Europe European Energy Security Strategy, which outlined the need to enhance EU resilience to such crises. Alongside diversifying supply routes, the EU seeks to: diversify sources of supply; ensure access to flexible fuel alternatives, such as LNG; and reform internal European markets to allow for greater mutual support – for instance, by enabling pipelines to carry gas in both directions.

Europe’s roadmap for achieving energy security also includes boosting domestic production and increasing the use of sustainable energy.

Russian gas is somewhat of a poisoned chalice for the EU: it is cheaper than almost any other supply Europe could purchase, be they pipeline or LNG imports, yet depending on Russia weakens the EU’s own energy security. One energy expert noted that there is little getting away from this, and that Europe will continue to rely on Russia as its principal supplier of imported gas even if Europe successfully pursues alternative suppliers.

Currently, more than half of all the energy consumed within the EU is imported from abroad, making it heavily reliant on external supply. In the case of natural gas, the proportion of energy imported is closer to two-thirds.

In the two decades between 1995 and 2015, European dependency on natural gas imports rose from 43 percent to 67 percent.[4] Alongside other factors, this was driven by diminished European production, which fell by a Compound Annual Growth Rate (CAGR) of 5.6 percent in the decade between 2005 and 2015.

Germany, Italy, France, Belgium, and Spain are the biggest importers of natural gas, the majority of which comes from Russia, Norway, Algeria, and Qatar.

But Norway’s production is gradually declining and future prospects for Algerian gas remain unclear, because key contracts will end in 2019 and 2020.

Qatar will likely remain an important supplier of Liquefied Natural Gas (LNG) to the EU, particularly to western European states that have the requisite capacity for regasification – the process of converting LNG to gas − in their LNG terminals. But it is Russia that supplies the lion’s share of gas, accounting for around one-third of European gas 33

imports. Member states vary in their dependency on Russia according to internal factors such as domestic production and fuel mix, and external factors such as geographic proximity, geopolitical relationships, and the availability of alternative supply options.

According to the latest figures, countries in eastern Europe such as Estonia, Finland, Latvia, and Lithuania are particularly exposed, as they import all of their natural gas from Russia.

A longtime goal of the EU has been to increase energy security, here loosely defined as the ability to reliably secure access to uninterrupted supplies to meet local demand. Crucial to achieving energy security is ensuring the uninterrupted flow of gas, Russian or otherwise, to Europe. The majority of imported Russian gas currently transits through networks in Ukraine, although pipelines such as Nord Stream and Yamal provide additional security by offering alternative transit routes.

European gas disputes with Russia climaxed in 2014 when Gazprom − Russia’s state-owned gas supplier − cut off exports to Ukraine. This led to severe energy crises in several eastern European states, some of which depend wholly on Russian supplies.

That same year, the EU put forward the

This will be the case particularly if Gazprom reduces its prices further to safeguard its European market share.There is geostrategic value in diversification, but the EU – as a political and bureaucratic body – can only intervene on the policy level and ensure regulatory frameworks allow for the emergence of a competitive market environment.

Whether such markets then meet the EU’s diversification policies depends almost entirely on commercial factors.

The EU may have its hands tied by market dynamics, but it has continued to push forward the political track on diversification.

Some of its initiatives and adjustments have been inward-looking – such as endorsing a shift towards renewables, or making efforts to explore alternative means of European production. The EU28 have been working towards the target of ensuring that renewable energy accounts for 20 percent of the total energy mix by 2020.

This goal has often manifested itself in specific policies that support a market reorientation towards renewables: for example, through direct subsidies for renewables, or through plans to actively decarbonise electricity supply.

These efforts were given a further boost by the COP21 climate deal, which represented a major breakthrough in the international community’s commitment to reduce greenhouse gas emissions.

energyandecology.com

Issue 5 June 2017

OIL&GAS

Egypt quickens pace of oil and gas development projects foreign oil and natural gas operators billions of dollars, which has led foreign operators to delay their investments in existing and new oil and natural gas projects.

Meanwhile, oil production has not grown parallel to demand; Egypt produced 723,000 bpd in 2015, up from 714,000 in bpd 2014. This leaves a shortfall of almost 100,000 bpd, which forces Egypt to import oil despite reserves measured at 3.5 billion barrels at the end of 2015, according to BP figures.

Egypt’s natural gas presents a similar picture with consumption of 47.8 billion cubic meters in 2015 outpacing a production of 45.6 billion cubic meters.

Consumption has been flat from a year ago, while production declined by 6.6 per cent.

The country’s natural gas reserves stood at 65.2 trillion cubic feet at the end of 2015.

REFORMS AND FDI Egypt’s oil and gas sector is rising out of dormancy and lethargy under a new leadership as the government takes on major reforms to ensure a faster development and economic recovery from a revolution that took a heavy economic toll.

Under reforms led by Egyptian President Abdel Fattah el-Sisi, the North-African country in recent months floated its currency, freeing it from artificial exchange rate controls, cut energy subsidies and took on other austerity measures to qualify for a US $12 billion loan from the International Monetary Fund.

The loan, approved in early November, is meant to equip the nation to restore macroeconomic stability after years of civil unrest and terrorist attacks that have bitten into Egypt’s main revenue streams of tourism and foreign direct investments. To restore its economy, the country’s reform plans include developing the oil and gas sector to meet domestic energy needs of a growing and large population of more than 80 million.

ENERGY DEVELOPMENT Egyptian Petroleum Minister Tarek El Molla, speaking at ADIPEC 2017 – Abu Dhabi’s oil and gas exhibition in November, said within the country’s new strategy for energy security and satisfying domestic demand, it has signed 70 new upstream and oil and gas exploration agreements, including 300 wells. So far $33.8 billion worth of investments have been carried out.

“Our downstream industry is the most developed in Africa, with more than $14 34

billion of investments expected. We have managed to attract new investments with a spade of expected announcements yet to come,” El Molla said, as the country looks to attract more foreign investors to develop its energy sector.

Steps are being taken to improve the foreign investment environment, which will be crucial to continue development of its new mega offshore gas discoveries. Egypt is the largest oil producer in Africa outside of the Organization of the Petroleum Exporting Countries (OPEC) and the second-largest natural gas producer on the continent, behind Algeria.

It is also the largest oil and natural gas consumer in Africa, accounting for about 20 per cent of petroleum and other liquids consumption and 40 per cent of dry natural gas consumption in Africa in 2013. Its total oil consumption in 2015 was 824,000 barrels per day, up 2.3 per cent from the year earlier, according to BP’s Statistical Review in June 2016.

The rapid growth of oil and natural gas consumption over the past few decades has been driven by increased industrial output, economic growth, energy-intensive natural gas and oil extraction projects, population growth, an increase in private and commercial vehicle sales, and energy subsidies. Consequently, the high cost of energy subsidies in recent years has contributed to the country’s high budget deficit and the inability of the Egyptian General Petroleum Corporation (EGPC), the country’s national oil company, to pay off its debt to foreign operators. EGPC owes

Backed by economic reforms and the IMF loan, Egypt is attempting to correct the energy shortfall by investing in the oil and gas sector and also making the foreign direct investment environment conducive for projects to move along at a faster pace.

At centre stage of this push is the offshore Shorouq concession, which contains the massive gas field Zohr – the largest natural gas field ever discovered in the Mediterranean with an estimated 30 trillion cubic feet of gas according to Italian energy firm Eni who first found the field in August 2015. Eni, which initially owned 100 per cent of the interest in the concession has sold a 10 per cent interest to BP and a 30 per cent to Russia’s Rosneft.

The first phase of development of Zohr is now being fast-tracked with six wells successfully drilled and the first gas currently expected in late 2017. Other concessions are also under way with blocks awarded of Southwest Meleiha in the Western Desert and Karawan and North Leil in the deep water of the Egyptian Mediterranean.

Egypt has been producing natural gas since 1975 when the first natural gas field, Abu Madi, was brought on stream. These substantial gas discoveries in the deepwater Mediterranean Sea and in other areas in Egypt were undeveloped for many years but recently, activity has picked up.

Egypt Natural Gas Holding Company has signed deals to pay foreign operators a higher price for the natural gas, ranging from $3.95 to $5.88 per million Btu, to attract more foreign investors. energyandecology.com

Issue 5 June 2017

MINING

Hidden opportunity in Australian mining industry them into better geological models than those now being created.

The petroleum industry provides an analogy. Coming out of World War II the industry didn’t have the tools needed to explore for hydrocarbons in the subsurface, but over time these were developed, enabling explorers to target areas of interest. Minerals present a more complex geological scenario, but should be approached in a similar way.

Why does the Australian minerals industry need Deep Earth Imaging?

Chris Pigram, former head of Geoscience Australia

The society of the future will still need the earth’s mineral and energy resources, says Chris Pigram, former head of Geoscience Australia. But, with near-surface resources depleting, it’s time for the industry to take a giant leap and do things differently.

What opportunities exist for Australia to continue to benefit from its abundance of mineral and energy resources?

Australia has always exploited its natural endowment and can continue along this path for many years. With growing global demand for minerals like copper and zinc there is an enormous opportunity for Australia to continue being a leading supplier of resources. For instance, in the next 30 years the world will need as much copper as has ever been produced to sustain development of modern technology and renewable energy.

The need for energy is also growing, particularly in developing northern and eastern Asia, and Australia has a major role to play in feeding this demand.

What tools and techniques are needed to explore, develop and exploit these resources?

In an environment where deposits are obscured by cover material of 100m or greater, today’s tools and techniques are ineffective and a whole new range is required. Drilling is one tool and there is encouraging research being carried out by the Deep Exploration Technologies Cooperative Research Centre (DET CRC).

The big challenge facing the geological community is to better define what we can’t see by developing vastly improved subsurface imaging techniques, which will provide a better idea of the geology lying ahead of the drill.

CSIRO’s Deep Earth Imaging Future Science Platform aims to take the limited number of physical properties that can be measured and develop the capacity to turn 36

Australia is very well explored, at or near the surface, by a capable and highly successful industry. However, the next generation of resources to sustain the pipeline will come from more than 100m below surface. There is no reason to assume that the next level of depth doesn’t have the same endowment as what we have already exploited.

For Australia to attract future mining investment, it needs to be attractive, and the potential for mineral and energy resources at depth needs to be demonstrated.

develop the tools and techniques, and GA will help apply them, demonstrate their effectiveness and assist industry to adopt them.

In what other ways has Geoscience Australia worked with CSIRO? A recent collaboration involved piloting UNCOVER work in a geological context in western Victoria with the aim of determining prospectivity. During this project, CSIRO developed some of the capabilities around the Lab-at-Rig concept, which provides geochemical analysis in real time.

Analytical information is obtained while the rig is onsite without the need to send samples offsite and wait for the results.

It was an effective collaboration that provided rapid results onsite and the partnership demonstrated that the CSIRO concepts were valid. It is amazing that you can obtain instant results, rather than waiting weeks before realising that perhaps the hole should have been a metre or so deeper or inclined one degree further. It proved an efficient and effective use of resources and the concept is now being commercialised.

Deep Earth Imaging research will keep Australia at the forefront of resources sector capability and provides an enormous opportunity for the mining, equipment, technology and services (METS) sector to not only find those resources, but to show others how to go about it. It will also enable the resources sector to continue contributing significantly to Australia’s economy. All information collected through geophysics is ambiguous and there are always multiple interpretations.

The programme has been set up well and the concepts around implementation are excellent, but the issue will be how to get the mining industry to think laterally. The technology is not about incremental improvement of what we already know, but involves some radical steps and the industry will have to show enough courage to take that giant leap.

Having stronger geological statements is a priority of the work, because reducing interpretations and having more confidence in geological models at depth will make a big difference with the effectiveness of follow-up drilling.

It is also a big opportunity. As well as doing some of the more predictable things, it is important that miners are out-there, developing a new way of doing business to overcome the challenge of exploiting resources at depth.

How will Geoscience Australia be involved in development of Deep Earth Imaging?

Scientific leadership is also needed to ensure the industry does things differently.

This is what research is about – at the end of the day you want to be at the cutting edge.

CSIRO has created this opportunity and I commend them for doing so.

Geoscience Australia (GA) is participating in the Exploring for the Future programme, which is focused on northern Australia and is supported by government funding. The programme aims to open the doors to exploring under cover at depth and provide pre-competitive information in the commercialisation process. GA will work with CSIRO and state geological surveys to help apply and test techniques and methodologies in a real world environment.

An important aspect of the work is Deep Earth Imaging, through which CSIRO will

What will the barriers be to implementing Deep Earth Imaging?

Are there similar opportunities beyond these shores?

Going under cover is a global issue and Australia leads the way from the early stages as well as the upstream, precompetitive phases where GA and CSIRO operate. We are pioneers and if we can find a way to crack these problems, it will lead to global application.

energyandecology.com

Issue 5 June 2017

MINING

Olympias Gold-Silver-Lead-Zinc Mine, Greece employed at the Olympias underground mine.

During the first phase, the existing ramp from the mine surface to the base was rehabilitated along with the development of a new 1,300m Olympias decline in the area north-west of the concentrator. Tailings from the previous flotation tailings management facility formed the initial feed for the rehabilitated concentrator.

The Olympias gold-silver-lead-zinc massive sulphide underground mine is being re-developed in the Halkidiki Peninsula of northern Greece, Europe.

The mine is expected to have a mine life of more than 25 years.

Environmental impact assessment (EIA) for the Olympias mine redevelopment was approved in 2011, and the Ministry of Environment and Climate Change (MoE) approved the technical study report in March 2012.

Through its Greek subsidiary Hellas Gold, Canadian mining company Eldorado Gold holds a 95% interest in the Olympias mine, while AKTOR holds the remaining 5% stake. Eldorado Gold gained ownership rights of the mine through the acquisition of European Goldfields in February 2012.

Three-phase mine development of Olympias The Olympias mine is being re-developed in three phases. The first phase was completed between 2012 and 2016, while the second phase will be carried out from 2017 to 2022, and the final phase from 2022 to 2025. The first phase works commenced in 2013 and ended with completion of the tailings retreatment facility in the first quarter of 2016. The works included the environmental clean-up of previously mined tailings and renovation of the concentrator plant and underground mine.

In the second phase development, a refurbished flotation circuit will be used to process the ore and produce lead-silver, zinc, and gold-bearing pyrite-arsenopyrite concentrates. The phase will also include the development of Stratoni Decline and construction of the Kokkinolakas tailings 37

management facility (TMF).

The third phase will include the underground mine expansion, increasing the gold production to 170,000oz a year, construction of a new concentrator and gold plant in Stratoni valley, and raising the mill throughput to 800,000tpa.

Olympias mine geology and mineralisation The Olympias deposit is a poly-metallic carbonate replacement deposit hosted in an inter-layered sequence, a mixture of feldspar-biotite gneiss and marble, within the Paleozoic Kerdylia Formation of the Serbo-Macedonian Massif, Greece.

The deposit consists of two main endmember ore types, including a base metalrich ore and a high arsenic-silica, high gold ore. The base metal-rich ore comprises variable pyrite, galena and sphalerite, and calcite-rich gangue, while the latter ore type contains grey arsenian pyrite and arsenopyrite, and subordinate galena and sphalerite with quartz-rich gangue. The deposit hosts massive sulphide carbonate (marble) and aplite replacement lenses interlayed with biotite gneiss and schist.

Olympias gold-silver-lead-zinc mine reserves The Olympias mine is estimated to contain proven and probable ore reserves of 16.08 million tonnes (Mt) grading 7.87g/t Au, 128g/t Ag, 4.3% Pb and 5.7% Zn. It is estimated to contain 4.07 million ounces (Moz) of gold, 66.3Moz of silver, 693,000t of lead, and 921,000t of zinc.

More than 2Mt of ore was processed resulting in the production of approximately 20,000oz of gold a year. Gold concentrate of approximately 61,000oz was sold during the first phase. Ore mining under the second phase is expected to begin from 2017 and last for four years to reach a production level of 400,000 tonne a year.

The ore will be hauled to the surface through the Olympias decline and will be processed in a flotation circuit.

The mine is expected to produce approximately 85,000oz of gold a year and 55,000oz of gold-equivalent from the second phase.

During the ninth year, ore will be transported through the Stratoni Decline for processing at the new 850,000tpa concentrator at Stratoni. The ore production is expected to increase to 729,000tpa and is expected to range between 790,000tpa and 846,000tpa from years 10 to 18. Ore from the underground mine will be crushed on surface before conveying to the Stratoni concentrator, where it will be fed to the SAG mill through a conveyor. The SAG mill will operate in combination with two ball mills and the resultant discharge will be processed in a cluster of hydro-cyclones.Overflow from the hydro-cyclones will be forwarded to the flotation stage, where lead/silver concentrate will be processed first, followed by zinc, and gold-bearing pyrite concentrate.

Contractors involved with the Olympias mine development Hellas Gold awarded the $7m engineering, procurement and construction management (EPCM) services contract for the Olympias project to GR Engineering Services. The contractual scope includes design and construction of the gold-leadzinc concentrator under the second phase mine development.

Mining and processing at the Olympias mine Conventional drill, blast and load-hauldump (LHD) method of mining will be energyandecology.com

Issue 5 June 2017

MINING

Why is illegal mining flourishing in Pakistan? facilitated by corruption within the government. There have been a string of scandals involving government officials being arrested for profiting from mining.

Both former Mining Minister Ziaullah Afridi and director general of the Directorate of Mines and Minerals Dr Liaquat Ali were arrested in 2015 for misuse of power, allowing illegal mining and misappro Such arrests have not only hampered the legitimacy of the government’s offensive against illegal mining but also led to infighting within political parties.priation of millions of rupees in profit.

What is the government doing about illegal mining?

Eng. Rodney Allam

Many challenges face Pakistan as it strives to stamp out illegal mining and attract investment to take full advantage of its rich variety of resources. As the eight-year ban on excavation in the Northern Province of Khyber Pakhtunkhwa ends, Molly Lempriere takes a look at the challenges in this region and the country as whole, and asks what the government can do to unlock the next step in Pakistan’s mineral journey.

Mining is a crucial industry in Pakistan, but one which faces a host of challenges.

Regional and national governments are working to improve the regulatory and operational landscape for miners and mining companies, but with regional instability and illegal mining pervasive, is there still a long way to go?

Pakistan is a resource-wealthy country with large quantities of coal, iron and copper, as well as gold and gemstones. Currently, Pakistan hosts the world’s second-largest coal deposits with as much as 185 billion tonnes, as well as being the third-largest producer of iron ore pigments.

Pakistan has only begun to scratch the surface of its resource potential. The last few years have seen large mineral deposits being unearthed, including an iron ore body in the central province of Punjab. This discovery, announced in 2015, reportedly contains an estimated 500 million tonnes (Mt) of iron ore and is owned by the Metallurgical Corporation of China.

However, a history of corruption and illegal mining has deterred international investment in the mining industry. Globally, mining has a long history of operating in dangerous and underdeveloped areas, but the insecurity of assets in Pakistan 38

continues to deter many companies from investing.

A moratorium on mining excavation in the northern Khyber Pakhtunkhwa province was introduced eight years ago, but this has been repealed by an ordinance in August 2016. The ordinance brings in a series of regulations that the local government claims will increase international investment, but some have reacted with anger. The province, which has been plagued by illegal mining, highlights the widespread problems affecting the country as a whole.

Illegal competition Illegal mining has flourished in Khyber Pakhtunkhwa since the ban; as legitimate mining efforts have ceased, mafia groups and other gangs have taken over.

GlobalData head of research and analysis for mining Clifford Smee says the mafia’s presence is unsurprising, as “mining needs a somewhat sophisticated organisation to successfully operate”.

“Illegal mining is always an issue in developing countries,” Smee adds. “We see large illegal mining in major producing countries such as Indonesia (100Mt of coal is illegally mined), and we have seen issues with illegal mining in neighbouring India.

Khyber Pakhtunkhwa is an area rich in gems and semiprecious stones, with Swat alone boasting 70 million carats of emerald reserves. The Mardan district has nine million carats of pink topaz reserves while Kohistan has ten million carats of peridot, all of which are currently being illegally traded by organised gangs.

The ordinance in Khyber Pakhtunkhwa will lift the ban on mining, but will also bring into effect new regulations to manage the industry. These will include truck checks at mine sites rather than on the road in order to streamline the process, and provision of heavy and modern machinery by the local government to minimise waste.

Growing pains: the next steps for Pakistan’s mining sector Despite efforts to increase investment and tackle gangs, there are still many hurdles to overcome, not the least of which is how to win over the mining companies at home and internationally. “The government is responsible for the current illegal mining of precious gems and semi-precious stones and other minerals as the ban slapped in 2008 encouraged organised gangs to continue their illegal business,” Frontier Mine Owners’ Association (FMOA) president Sher Bandi Khan Marwat told The Express Tribune at the end of last year.

The eight-year ban has taken its toll upon Khyber Pakhtunkhwa and the government is often blamed for allowing the mafia to become so well-established. A shift to legal mining will be challenging and the ordinance has not necessarily made it easy.

For instance, the FMOA’s Khyber Pakhtunkhwa branch has claimed that, of the 1,300 mines in the province, 80% are on the verge of collapse.

Also, regulations brought in by the ordinance are being called unworkable by mining companies in the Khyber Pakhtunkhwa area, which has led the FMOA to obtain a stay order from the high court. With competition from illegal mining gangs, conforming to the regulations is impossible and puts off foreign investment, argues the FMOA.

The presence of illegal mining has been energyandecology.com

Issue 5 June 2017

MINING

New Acland Coal Mine Expansion, Australia the basins hold the economic coal-bearing sediments. The main coal bearing unit in MLD 244 is referred to by NAC as the Acland-Sabine Sequence.

Reserves The revised Project's JORC-classified reserves within four mining licenses, including MDL 244, for run-of-mine (RoM) tonnes total 441Mt. Mining and processing at expanded New Acland coal mine The truck and excavator/loader method, which has been in use at the open-pit mine since the beginning of its operations, will continue to be used.

The New Acland mine is an open-cut, thermal coal mine located near the Acland town, 14km north-west of Oakey Town, Queensland, Australia.

Owned and operated by New Acland Coal (NAC), a subsidiary of Australian mining company New Hope Group, the mine has been in production since 2002.

As the mine reserve was forecast to be depleted by 2017, NAC proposed the New Acland Coal Mine Stage-3 project expansion to extend operation and increase production capacity.

The plan was revised in 2012 and the same received approval from the federal government's Environment Protection and Biodiversity Conservation Act (EPBC) in January 2017. The initial capital investment of the project is estimated to be approximately $500m.

The project is expected to extend the mine's operation by approximately 12 years, while also increasing the mine's thermal coal production capacity to 7.5 million tonnes a year (Mtpa) from the current production levels of 4.8Mtpa.

The mine is estimated to produce 80.4 million tonnes (Mt) of coal over the life of the mine, if the project proceeds.

New Acland Coal Mine Stage-3 details The plan to expand the New Acland mine operations was first proposed in 2007.

NAC, however, revised the project in 2012 to address the concerns raised by the Queensland government and local community about the potential impact of the project.

The revised project envisages the progressive development of two new 39

resource areas within the new mining lease area, including Manning Vale and Willeroo, and three new pits, namely Manning Vale West, Manning Vale East and Willeroo.The revised project has a considerably reduced disturbance footprint (approximately 63% less) and ensures that the mining operations will be located at least 10km away from Oakey Town.

Other changes include a relocation of the train loading facility from Jondaryan to a remote site closer to the mine and as previously proposed, the train loading arrangement will include a veneering system that seals the exposed coal at the top of each loaded wagon to reduce the potential for dust emissions during transport. This is a practice New Hope initiated and has been doing since 2013.

The estimated capital cost of the revised project is approximately $896m, with operating costs of approximately $450m a year. The estimated expenditure is approximately $6.6bn over the life of the revised project.

New Acland coal mine geology and mineralisation The two resource areas to be developed as part of the revised project are located within the mineral development licence (MDL) 244, which is located in the north-west of the Moreton Basin over the northerly trending Kumbarilla Ridge, which separates the Moreton and Surat Basins.

The existing coal handling and preparation plant (CHPP) will be upgraded to account for the additional RoM coal throughput and a new CHPP Module 3, with a processing capacity of 750t/h of RoM coal, will be constructed.

CHPP Module 3 will be housed in a building, which will have a similar layout as that of the existing CHPP Modules 1 and 2, but will be widened to accommodate a second deslime screen. CHPP Module 3 will also have a larger dense medium cyclone (DMC) reject screen compared to the other modules. An overhead crane will provide access to the DMC. A new sorting technology will be used in the wash plant for the coal processing. The processing of the raw-coal will be performed by using high-pressure air jets and X-ray to expel the rejected material before they are sent to wash plant.

Major infrastructure developments for the expansion project NAC revised the access and now propose to construct the Northern Mine Industrial Area Access Road at a new intersection location on Pechey-Maclagan Road west of Cherrys Road. This new road will enter into the new Mine Industrial Area (MIA) and will be designed to the appropriate standards to transport light vehicles into the revised Project site. The existing Jondaryan-Muldu road will be used as an internal haul road.

The existing 33kV mine and district 11kV power lines will be relocated and rebuilt.

The current power requirement of the mine is 5MW/5.7MVA a year, which is expected to increase to 12.6MVA a year based on 7.5Mtpa full production.

While the Surat basin comprises earlyJurassic to early-Cretaceous age nonmarine and marine sediments, the Moreton basin is made up of non-marine sediments dating from the late-Triassic.

The Walloon coal measures present in both energyandecology.com

Issue 5 June 2017

MINING

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

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

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

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

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

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

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

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

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

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

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

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energyandecology.com

Issue 5 June 2017

MINING

Research into carbon-neutral mining

De Beers Group is leading a research project that aims to deliver carbon-neutral mining at some of the company’s operations.

The company’s scientists are working in close collaboration with a team of scientists to investigate the potential to store large volumes of carbon at its diamond mines through the mineralisation of kimberlite tailings, the material that remains after diamonds have been removed from the ore.

De Beers Group will investigate the storage potential across its diamond mines globally. According to the diamond company, this is the first time such extensive research has been undertaken to assess the carbonation potential of kimberlite, a rare type of rock that has been found to offer ideal properties for storing carbon through mineral-carbonation technologies.

The project aims to accelerate what is already a naturally occurring and safe process of extracting carbon from the atmosphere and storing it at a speed that could offset man-made carbon emissions.

Scientists estimate that the carbon storage potential of kimberlite tailings produced by a diamond mine every year could offset up to 10 times the emissions of a typical mine.

De Beers Group’s project lead for the initiative, Dr Evelyn Mervine, said: “This project offers huge potential to completely offset the carbon emissions of De Beers’ diamond mining operations.

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“Mineral-carbonation technologies are not new, but what is new is the application of these technologies to kimberlite ore, which is found in abundance in the tailings at diamond sites, and which offers ideal properties for the storage of very large volumes of carbon.

“As part of the project, we are looking at how these existing technologies can be modified to develop specific solutions suitable for storing carbon in kimberlite tailings.

“The research is in its early stages and it may take some time before it is economically or practically achievable to tap into this full storage potential. However, even just tapping into a small amount could greatly reduce the net emissions at many of our mine sites in the near future, and possibly lead to carbon-neutral mining at some sites within the next five to ten years.

“As technology improves over time, more and more carbon could feasibly be stored in kimberlite tailings, meaning we could ultimately offset more emissions than we are producing.”

Mineral carbonation is a natural or artificial process whereby rocks at the Earth’s surface react with carbon dioxide sourced from the atmosphere and lock it away in safe, non-toxic, solid carbonate materials – taking that form in kimberlite rock in this instance.

The work being undertaken by the project team could have significant applications for the broader mining industry, as the ideal carbon-storage characteristics of kimberlite rock are also found in rocks

mined for other commodities, such as nickel and platinum, the company explained.

De Beers Group CEO Bruce Cleaver said: “By replicating this technology at other mining operations around the world, this project could play a major role in changing the way not only the diamond industry, but also the broader mining industry, addresses the challenge of reducing its carbon footprint.

“By investing in ground-breaking projects such as this, aligned with the FutureSmart Mining innovation programme of our parent company, Anglo American, we have the real potential to leave a positive, longlasting legacy for the global mining industry.”

De Beers started the project in 2016. A key part of its early work was centred on supporting academic-focused mineral carbonation studies of old (pre-1912) and recent (post-2008) kimberlite tailings samples from Voorspoed mine in South Africa, which provide a great ‘natural laboratory’ for understanding carbonation reactions in kimberlite Mineral-carbonation potential assessment studies are currently underway for Venetia mine in South Africa and Gahcho Kué mine in Canada.

Further research and detailed studies will continue in 2017 and 2018 to assess the carbonation potential at these and other De Beers Group mines.

energyandecology.com

Issue 5 June 2017