Energy&Ecology Magazine

017

September 2 issue 6

Klemen Potisek: A RES - only future could be very expensive

contents ENERGY 4 | Klemen Potisek: A RES-only Future Could be Very Expensive

ECOLOGY 19 | William Cannon, Environment&Infrastructure Group

6 | Energy Financing Group

20 | EIB supports transition to low-carbon and climate-resilient economy

7 | RPC Radiy – The road to success

21 | Carbon capture's new material

10 | How to build the energy business and save millions 11 | Hus Ltd. - Steel manufactoring and trade 12 | Maximum energy efficiency, minumum investment and plot space 13 | Energy efficiency in Bosnia and Herzegovina

OIL&GAS

22 | Dirk Forrister, CEO and President of IETA 23 | The end of coal: EU energy companies pledge no new plants from 2020 24 | Kristina Cvejanov, President on Serbian Packaging Waste Recyclers Association: There's no such thing as a free lunch

MINING

26 | Oman the largest oil and natural gas producer in the Middle East

38 | Will President Macron resurrect the French mining industry?

28 | Converting natural gas to LNG

39 | 10 largest mining companies in the world

29 | Baltic countries seek Norway gas link 40 | Introducing HyLogger: Mineral analysis without delay 32 | Flue gas analysis – brilliantly easy: testo 350 – the first flue gas analyzer that thinks ahead

41 | Why is illegal mining flourishing in Pakistan?

35 | Ciprian Alic, Transgaz: Romania Can Play Dual Role in Ensuring New Gas Volumes in SEE

42 | Dust Suppression Overview

36 | Egypt quickens pace of oil and gas development projects

43 | Can sand mining ever be green?

4 Kalina Traykova Manager, Bulgaria Energy Institute Jsc, Bulgaria http://www.eninbg.com/ Hedayat Omidvar National Iranian Gas Company phone: + 359 9 8882 9391 e-mail: office@energyandecology.com Klemen Potisek, State Secretary at the Slovenian Ministry of Infrastructure 2

www.energyandecology.com

energyandecology.com

Issue 6 September 2017

Energy

Klemen Potisek: A RES-only Future Could be Very Expensive take into account in Slovenia and we feel that we should at least try to harmonise, approximate, clarify these differing opinions... We have two million energy experts in Slovenia (the approximate number of the country's inhabitants; author's note). When we first presented our starting points, we did not have any longterm energy balance sheets or analyses, whereas now, we do. There was even a dilemma within the ministry over which path to take. We did not want to impose any bans or stipulate anything, like the use of specific technologies. We are moving towards decarbonisation and we will support any technology that contributes to it, and no other.

Klemen Potisek, State Secretary at the Slovenian Ministry of Infrastructure (MzI), believes that the debate on the Slovenian Energy Concept (EKS) will be quite lively.

The ministry now has the long-term balance sheets which were essential in drawing up this document. According to Potisek, there is no doubt that Slovenia's energy sector will move towards energy efficiency (EE) and renewable energy sources (RES), however, it is still unclear whether this will also include nuclear power. As he adds, the ministry is not concerned with the way in which this goal is achieved. It finds a RES-only path quite acceptable, however – as Potisek warns – according to its calculations, it could be very expensive. Additionally, the National Climate and Energy Plans, which will include concrete projects and which the EU Member States will have to harmonise by 1 January 2018 and adopt by 1 January 2019, as proposed for the time being, will need to be harmonised on a regional level.

It seems that you are leaving the debate on Slovenia's energy future quite open.

The workshops have already taken place, but you now intend to hold them again. Why do you simply not move on to submitting your proposal on further steps for the energy sector?

This is because we now have the calculations, which we believe the public should be made aware of before we move on to developing a more concrete path, which will undoubtedly stir up quite a lively debate.

Why even hold the debate when the workshops have already taken place?

Why not simply propose a concrete path?

Because there are many different sides to 4

Is this not a bit too general? After all, we already know that we are moving towards decarbonisation...

If we were to stipulate anything or impose the use of a specific technology, it is very likely that another part of the energy sector would disapprove. We wanted to follow a path which proved the most acceptable in our debates and which could be adopted the quickest. We are now in the pre-election period, which is never good for adopting any kind of strategic documents. We do believe, however, that it is better to have a general document, which is adopted, than to have a document, which is more concrete, more like a guideline, but does not survive the adoption process, leaving the country without an adopted vision.

Do you believe it will be adopted before the current government's term expires?

A public consultation is planned for early September at the latest. This will then be followed by cross-ministerial co-ordination and a submission to the National Assembly.

EKS could be adopted in December or early January at the latest. By this I mean the adoption of a resolution on EKS in the National Assembly.

Opinions differ – there are those who are in favour of RES as the only option and those who see a future where RES are used in combination with nuclear power.

How do you intend to solve this issue?

Good question. The absolute priority is energy efficiency (EE) – what we do not use, does not need to be produced. When it comes to EE improvements in buildings, we have the domestic know-how and services at our disposal, which provide for the greatest possible macroeconomic multiplier effects. These things have an immediate

impact – both on economic growth and on the welfare of the people. This will provide the first pillar.

The second pillar, which follows from the EU commitments under the Paris agreement, are, of course, renewable energy sources (RES). We will keep accelerating the promotion of RES. However, with regard to the major intermittent sources – wind and PV – we still need to solve the question of energy storage, which will act as a very important precondition in ensuring the stability of the power system. Then there is also hydropower, which I hope will take the main focus when it comes to RES. This is an area where we have over 90%, or even close to 100%, of the know-how and sources already available domestically, allowing for the greatest possible multiplier effects. The lifetime of such a facility can be roughly up to 100 years, and with ongoing maintenance and investment, it can even present a constant energy source. We can build 3 units on Mura river and 9 to 11 on the mid-stream of Sava river. Furthermore, when discussing hydropower, we should also mention climate change. The winters are becoming warmer and the level of snow accumulation in the mountains is becoming increasingly unpredictable, leading to a possibility of a complete lack of hydro potential over the year. We are faced with an energy issue, which is not made any easier by the brief periods of intense rainfall, followed by water run-off. It even happens that there is no accumulation at all. If the climatic conditions deteriorate any further, we will have to take care of the accumulation ourselves, not only because of energyrelated reasons, but also to ensure that there is sufficient drinking water and water for agricultural irrigation. Water is a valuable resource and this is something we need to consider. In the 1970s, the then Assembly adopted a decision that Slovenia will not have any high barriers, which are key for accumulation.

The decision of the Assembly is still valid, however, deciding otherwise is one of the options which should be seriously considered.

Although it would not be possible today, it would probably – taking into account everything that has been said here – make sense to discuss it for the future.

There is no question about the fact that the strategy can focus both on RES and on nuclear energy. Nuclear has its advantages – it presents a stable energy source, for which we have domestic know-how and an appropriate energy location. However, there is also the question of public acceptance within Slovenia and wider.

energyandecology.com

Issue 6 September 2017

Energy

Klemen Potisek: A RES-only Future Could be Very Expensive The National Climate and Energy Plans, which the EU Member States will have to draw up by early 2019, which will include concrete projects, will have to be harmonised on a regional level. The entire region will have to harmonise its energy plans and I believe this will be quite demanding.

These plans will then also be examined by the European Commission. When discussing the new nuclear power plant (NPP), there are two sides – as energy experts, we welcome any new energy project, no matter the type, however, in Slovenia, the situation is a bit more complex...

Wind power plants (WPPs) are not acceptable and it is difficult to find an appropriate location for them, which is also a problem for hydropower plants (HPPs) – both large and small. PV is perhaps the least problematic in terms of finding a location, whereas nuclear is supported by some and opposed by others.

It has been clear for quite a while now that the competent authorities in Slovenia are in favour of the nuclear option in Slovenia. Why do you then say that the decision on the second unit of Slovenia's Krško NPP needs to be made within 5 years? Why not make the decision now?

In the last version of EKS we revised it to “in due time”.

What does “in due time” mean, exactly?

In Slovenia, this is a relative term, depending mainly on how long it will take us to come to a decision – to reach a consensus within the country, harmonise it with the rest of the region, find a suitable location for the new unit.

When I discussed this with the representatives of the Slovenian energy company GEN energija, they said that finding a location could take 7 to 12 years, whereas I believe this to be quite and optimistic estimate. The period until the first revision of EKS is therefore probably quite appropriate. The revision is envisaged in 10 years, so in 2027.

Additionally, in line with the Slovenian Energy Act (EZ-1), the energy ministry will report on the realisation of the related goals and measures to the National Assembly every three years, and, if it sees a need for a revision, propose one before this date.

Is the final decision in the hands of the government or the investor?

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The investor. The investor is the one that initiates it and takes care of all the procedures. Of course, we will need to reach a consensus, which is also stated in the coalition agreement. However, if you ask me, I am neither for nor against it. It is true that for us energy experts, it is difficult to imagine a way of transitioning from the old system to a new one, from the traditional one, characterised by predictable reliability and guaranteed redundancy to a RES system, for which we have no storage and no accumulation.

However, with the rising price of emission allowances, it is also difficult to imagine the continued operation of a reliable energy source such as Slovenia's Šoštanj thermal power plant (TPP), as this will undoubtedly affect its economics. On the other hand, if we do this with gas-fired power plants, it will be quite costly.

You mentioned the coalition agreement, which envisions a referendum on the potential unit 2 of the Krsko NPP. When is this referendum expected to take place?

Is it even possible that we opt for a RESonly option?

Yes, I believe it is possible that an RES-only option will be chosen. However, if a path that includes nuclear is chosen, the referendum should take place in the period before the first revision of EKS, so that we will know which direction to take on time. The ministry is not concerned with the way in which this goal is achieved. It cannot be. We find a RES-only path quite acceptable, however, according to the our calculations, this could be very expensive.

In any case, in the period up to 2030, we will have to allocate four-times as many annual resources to RES as we have until now. It all depends on how ambitious our ultimate objectives are – that is, if we decide to accelerate investment in OVE or not.

Additionally, if we decide to increase the RES share even further, let's say to 50% or more, this amount will also increase significantly. For this reason, we call for careful deliberation in all our discussions and decision-making – which has put us on a sustainable path to implementing measures related to EE, decarbonisation, the transformation of the energy sector, the industry, and the current way of thinking, that is, the energy use habits of all of us. It is also possible that some kind of technological breakthrough will take place during this time.

When I discuss this with colleagues from

other European countries, I get the feeling that they are all counting on some sort of revolution, a change, a technological breakthrough. This is actually quite probable, especially considering the fact that a lot of these the countries have vowed to abide by the Paris agreement, and considering the insistence of the automotive industry that after 2030, there will be no newly registered cars that will not be fuelled

by RES. RES and EE employ a lot of people worldwide. Do you have an estimate of how many new jobs this could mean for Slovenia?

The ministry has made estimates for EE in line with the action plan and determined that the field could create around 8000 new jobs by 2020, which is certainly not negligible.

On the other hand, when it comes to RES, the number of jobs will depend on whether we decide to import the means of production or whether the domestic industry will recognise the underlying opportunities and start developing, producing and perhaps even exporting, since otherwise, this could only have a negative effect on the number of jobs.

But additional jobs are also one of the main arguments of those who believe we should put our focus on RES. Indeed. The NPP actually has the least significant macroeconomic impact simply because the technology is imported. The advantage is that it is a reliable supply source, which is located in Slovenia, whereas the disadvantage is that, other than its construction, all the technology is imported.

When it comes to the decarbonisation measures that we mentioned – be it EE, RES or measures related to transport, the transition to smart communities and other smart solutions – the industry will have to recognise the opportunities in this regard.

Whichever technology we promote, it will be a direction that will apply both to education and to the industry, which will have to start adapting and purchasing these products and services domestically. If we import everything – from WPPs to PV panels – we will have done nothing, and sooner or later, the money will run out.

energyandecology.com

Issue 6 September 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 6 September 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: · 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).

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

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

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

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- Diagnostic coverage ≥ 99%.

· 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.

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

- Average frequency of dangerous failures of continuous safety function – < 10-7; · 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.

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.

· Switchgear and Electrical Distribution Systems for ESFAS.

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

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 6 September 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 6 September 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 9

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 6 September 2017

Energy

How to Build the Energy Business and Save Millions point temperature by just 1˚C, it would help homes to save 90 EUR/year.

Work principles: ·Create a desire to solve the biggest problems. ·Sweat the details and fail quickly. ·If it isn't difficult – it probably isn't worth doing.

Design Principles: ·Meet customers where they're going, not where they are. ·Design for simplicity – choreograph your customer experience.

“The number one question I get from several energy businesses is: 'How to become more innovative in order to increase customer engagement? How do we become more like a Silicon Valley company?' When starting with any business challenge, the first question that needs to be asked is not 'What does a product or service do, but what problem are we trying to solve?” said Andy Baynes, Head of Energy at Nest Labs, Google's energy start-up.

Nest Labs launched the thermostat in the USA about four-and-a-half years ago and it is now present in 11 countries, most of them European, and will be expanding to over 25 countries by next year. Although only sold in 11 countries, the company receives a signal from its thermostats – from those connected to the internet – from more than 190 countries.

Nest Labs was formed by a group of engineers at Apple at a time when Steve Jobs had just passed away. Some of the engineers were building their own houses and the choice of thermostats on the market was not impressive.

“We knew we needed to do something dramatically different.

We introduced the world's very first webconnected smart-learning thermostat.

It is smart learning because you do not need to open the userguide,” The importance of thermostats in the energy business Baynes said that thermostats are largely being ignored or overlooked, yet they perform a number of important tasks including reducing load consumption and supporting critical grid operations such as demand response. About 40% of UK homes do not even have a thermostat.

The average domestic energy bill in northwestern European countries is about 1,550 EUR/year. If one could adjust the average set10

·Automate the “call to action” and make it rewarding.

Demand response opportunity “In certain areas, particularly capacity markets in the USA, we have now started to offer services like demand response. We have actually reinvented demand response. If an energy company is vulnerable to peak load or peak price, it can use Nest to reduce the load with a flick of a switch,” said Baynes, while presenting a case from Dallas and Austin in the USA. For example, 1kW of load per thermostat can be shifted backwards or forwards.

This is a totally new experience. “Gone are the days when energy companies arbitrarily just switched off their customers' air conditioning or heat pumps. Today, the era has come where it has been gradually managed according to what we have algorithmically learned about comfort levels. Nobody gets annoyed and nobody gets uncomfortable,” said Baynes.

In turn, energy companies end up saving tens of millions of dollars a year from peak prices. “So much so that companies actually give money back to customers who participate in Nest's rush-hour awards,” said Baynes, adding that the thermostat has become a cash-machine on the wall. “It's paying you to participate in the energy company programmes.”

This issue is obviously a lesser opportunity in gas-heating markets such as those in Europe, although there are rumours about capacity markets coming up. However, Nest has its “eyes on the capacity markets on electric loads”.

Why? “With all Nest's thermostats around the world we have managed to save 7 billion kWh of energy consumption since October 2011.

smoke alarms – actually the world's first smoke alarm that speaks to you with words, and a camera – the world's first web-enabled HD camera. “The products are interconnected. If the smoke alarm detects smoke, it will automatically send a signal to the thermostat which switches off the boiler or heat pump. It then turns on the camera which starts sending a video feed directly to your phone,” said Baynes.

These are three fairly basic integrations, which are now extending the reach of the typical energy company story. “The energy companies we are currently working with are now not only selling thermostats,” said Baynes, but are also working on additional engagement with their customers via smoke alarms and cameras.

“The next big thing is Google Home,” Baynes also said. “Energy companies can now integrate using Google assistant. You can walk into your home and say 'Turn down my heating', 'Switch on my lights upstairs', 'Switch on my music', 'Tell me what my energy bill was last month'…

All of these are non-scripted natural voice commands and this is going to be the next big thing,” explained Baynes.

Google Home was launched at the end of last year and is coming to Europe on 6 April 2017.

“It is absolutely a game changer for the smart home environment and also the energy industry,” said Baynes, adding that the term Smart Home has delivered very little in the last 10 years. It is a bankrupt term, because all it did was focus on remote controls for switching things on and off using a mobile app.

“There isn't a world where we are going to have 20 or 30 different apps on our phone controlling Philips lighting or digital door locks or flood sensors. That's never going to happen, nobody wants that, it's just clutter. What is going to happen is that these products are going to be seamlessly connected, understanding each other's capabilities in the background. People will be interacting over voice to those products or to a hub like Google Home,” said Baynes.

“The shift that now needs to happen is to put everything together – the digital door lock, together with the lighting product, together with the thermostat, so that they all automatically recognise each other,” irrespectively of the brand names, said Baynes. “Customers need to be met on the journey along which they are heading anyway,” said Baynes, concluding the main lecture at this year's En.odmev conference.

That's the equivalent of removing about four power stations from the US power grid,” explained Baynes.

The next big step for Nest is … Google Home Nest doesn't only produce thermostats but also

energyandecology.com

Issue 6 September 2017

ENERGY MINING

Hus Ltd. - Steel manufactoring and trade have evidenced a long list of successful business partnerships. We value our customers’ needs and trust which we consider as our reward and a milestone to our continuous growth. We aim at affirming the name of HUS as being the most reliable steel supplier in Bulgaria and continuously increase its presence on the international markets.

Assets History HUS is a family company established in 1990 and headquartered in the city of Plovdiv, Bulgaria. It is specialized in manufacturing and trading of steel products. HUS proved to be a reliable partner and gained a superior reputation on the Bulgarian and East European markets.

Over the years the company has constantly invested in hi-end machinery, modern production facilities, warehouses and in the development and qualification of its employees.

The wide range of steel products and the high volumes of stock enable the company to meet the market demand for steel goods in various fields – construction, engineering, steel processing, and others.

Values The business strategy of HUS is building and keeping sustainable long-term relationship with its partners. For more than two decades of development, competence and experience in the steel industry we

- 14 warehouses, commercial, industrial and office facilities spreading on a total area of more than 1 700 000 m2.

- Over 100 000 metric tons of constantly available steel products on stock.

- More than 1000 highly qualified employees firmly committed to the company’s values and goals.

- More than 50 heavy-lift trucks ensuring a prompt delivery.

- Financial capacity and liquidity which enables the company to meet all of its obligations to suppliers and partners on time, and invest in further business development.

- Technical equipment for production of various steel products and performing steel processing services.

Our Team The most valuable asset of HUS is its human capital. For more than 25 years HUS has been focusing on recruiting energetic and highly qualified specialists, and

investing in their further education and training. Our managers, engineers, sales people and production employees are fully committed to the company’s values. HUS is a modern company constantly deploying new technologies, latest management practices and sustainable development principles. The high quality provided by our company is emphasized by implementing the Quality Management System in accordance with ISO 9001:2008, ISO 14001:2004, BS OHSAS 18001:2007.

Products HUS produces cold-formed welded tubes and hollow sections, low carbon hotdip galvanized and black wire, cold bent profiles, welded wire mesh, corrugated sheets and profiles for dry-wall construction and window’s reinforcements. The company also provides services such as cut to length from coils, cut to strips from coils, cut and bend of reinforcement steel. HUS is involved in domestic trade, import and export of hot-rolled and cold-rolled coils and sheets, hot-dip galvanized coils and sheets, PPGI, beams, merchant bars, concrete reinforcing steel, thermal insulation panels, seamless tubes and more. We guarantee our present and future partners high quality products, positive attitude, professional services and on-time fulfillment of all undertaken commitments.

You can rely on us!

www.husltd.com/en/

Hus Ltd. 64 A Plovdiv - Sever Str., 4027 Plovdiv, Bulgaria, 11

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

Issue 6 September 2017

Energy

Maximum energy efficiency, minimum investment and plot space shell-and-tube heat exchangers with special closures, such as threaded plug types and rod baffles as well as air coolers.

Alfa Laval OLMI is a specialised producer of shell-and-tubes and air coolers made of stainless steel and other special alloys, specifically for use in high pressure and high tempera- ture conditions.

Increased production Plot space limitations will be an issue whether a refiner plan to creep the capacity of an existing process unit or add a new one to the existing refinery.

Susanne Pahlen Aklundh, president, energy division, Alfa Laval

Alfa Laval offers a comprehensive range of heat exchangers for refinery processes, providing state-of-the-art technology to address everyday challenges.

In crude oil refineries, maximising profitability depends on the capability to enhance energy efficiency, reduce costs, lower emissions, utilise plot space intelligently and augment production yields according to the market demand.

Alfa Laval offers a wide range of heat exchangers that encompass everything – from specifically designed Alfa Laval OLMI shell-and-tube exchangers and air coolers, which cover high temperatures and pressures, to optimally efficient compact heat exchangers, such as Packinox, Compabloc and spiral heat exchangers.

Refinery reliability and uptime The key to maximising refinery reliability and uptime is using established heat exchanger technologies, which require less maintenance and repair. If at all any maintenance or repair is needed for the heat exchangers, it should be easy to service, thereby minimising downtime.

Alfa Laval has provided, since the 1980s, the refinery industry with a wide spectrum of heat exchangers. Currently, world over, several thousand Alfa Laval heat exchangers are installed and operating.

Compabloc and spiral heat exchangers from Alfa Lave help mitigate fouling tendencies in duties involving visbroken residue, cracker slurry, crude preheating, and desalter sludge. Apart from this, Alfa Laval heat exchangers help remove corrosion problems and fatigue / vibration issues, which regularly cause the failure of traditional shell-and-tube heat exchangers.

To maintain Alfa Laval high-efficiency heat exchangers, minimal downtime is needed 12

because fewer units are required to handle a specific service, In the case of Alfa Laval heat exchangers, the heat transfer area is easy to access and easy to clean. Through the Alfa Laval Performance Agreement with the customers, the company’s service engineers make sure that the Alfa Laval heat exchangers always provide the customers with highest performance.

Energy efficiency and CO2 reductions Energy costs, in many regions, represent up to 50 percent of the total operating expenditures of refineries. Maximising energy efficiency is high on the agenda, even in regions with low energy costs, in order to reduce emissions and the refinery environmental footprint.

The refiners can maximise energy efficiency with minimal investment and plot space required, with highly efficient Alfa Laval heat exchangers such as Packinox, Compabloc and spiral heat exchangers.

Crude distillation, residue upgrading and catalytic reforming are some of the processes that benefit from using Alfa Laval energy-efficient technologies. The payback on investment in Alfa Laval heat exchangers is normally less than a year.

The Alfa Laval heat exchangers are also used for waste heat recovery from lowgrade energy sources. A reduction of up to 4,000 tonnes of CO2 emissions per year can be realised for every megawatt of energy recovered.

Solutions for high pressures and temperatures Very high pressures (above 100 bar) and high temperatures (above 400°C) are often seen in refinery hydrogen treatment processes such as in hydrocracking units, hydrogen production units or hydrotreaters.

Alfa Laval offers, for these processes, OLMI

With highly efficient Packinox, Compabloc and spiral heat exchangers from Alfa Laval, the refiner can achieve maximum efficiency, using minimal plot space.

Here, compared to traditional shell-andtube heat exchangers, the heat transfer efficiency will be typically three to five times higher, thereby reducing heat transfer area also by three to five times.

The inherent compactness of the Alfa Laval heat exchangers further lowers the plot space required. The refiner can realise most of the capacity increase projects using Alfa Laval technology since up to 10 shelland-tubes in series can be replaced with a single Alfa Laval heat exchanger.

Capital expenditure savings The capital expenditures include both the cost of the heat exchanger as well as its installation cost, which together represent the total installed cost. It becomes increasingly beneficial to invest in Alfa Laval compact heat exchangers whenever replacing two or more shell-and-tube exchangers with a single highly efficient exchanger.

The equation becomes even more interesting when high-grade material is required because Alfa Laval compact exchangers are very cost-efficient due to the minimal heat transfer area required to manage a given service.

In addition, Alfa Laval compact heat exchangers provide major savings compared to traditional heat exchangers, when factoring in installation costs. When installation requires construction where minimal plot space and flooded weight is required in order to contain costs, this is especially true.

Using a factor of 1.5 to two times the heat exchanger cost, as a rule of thumb, is a reasonable estimate of a project’s total installed costs for compact heat exchangers.

energyandecology.com

Issue 6 September 2017

Energy

Energy efficiency in Bosnia and Herzegovina Author: Nihad Harbas, Energy and climate change consultant

companies are very energy intensive, which means they are spending a lot of energy per unit of product (kWh/kg).

Are end users still wasting energy?

Consequences

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.).

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 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 nonresidential 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, 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 Industry in BIH is not so much developed, and the sector accounts about 25% of energy consumption. However, BIH 13

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, 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 6 September 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 6 September 2017

Energy

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energyandecology.com

Issue 6 September 2017

Energy

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energyandecology.com

Issue 6 September 2017

Energy

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energyandecology.com

Issue 6 September 2017

Ecology

William Cannon, Environment & Infrastructure Group, Sumitomo Corporation of Americas continue to move forward powered by a finite supply of resources. Investing in ways to harness renewable energy sources is the only way we can sustain growth and progress for the generations to come.

Wind, solar and other renewable technologies are important for the future, but do not come without their own set of challenges.

This makes it that much more important to promote innovation – so we can not only harness the power of these resources right now but also continue to make them better and more effective solutions for our future energy needs.

How do you think environmental constraints will shape global markets?

William Cannon is Senior Vice President and General Manager, Environment & Infrastructure Group, Sumitomo Corporation of Americas Firstly, could you please explain who Sumitomo Corporation of Americas is and what you do?

Sumitomo Corporation of Americas (SCOA) is the largest subsidiary of Sumitomo Corporation, part of the Japanese “Sogo Shosha”, the traditional term for a Japanese trading company.

While SCOA is rooted in the trading business, today the company acts more like a global investment firm with businesses and subsidiaries across multiple industries and in multiple markets, including renewable energy and infrastructure.

At SCOA, I lead the Environment and Infrastructure business group for the Americas region, which includes the U.S., Canada, Mexico, Central, and South America.

I’m responsible for overseeing business development and asset management within this group. My team aims to find wind, solar, and other renewable projects to acquire, develop, finance, and own.

Environmental constraints are already shaping markets across the world.

Various countries and states have shown their commitment to climate change via the creation of assorted accords and contracts, such as the Paris Climate Agreement in 2015. We also see these forces at play in the private sector, thanks to the CSR initiatives of corporations, both large and small. Investors demand that companies address global warming and reduce their carbon footprints, which is where my team is able to help.

We act as the lynchpin in getting these companies partnered with new wind or solar generation projects that can provide them with clean power, and ultimately attain their green energy targets.

Additionally, since Sumitomo is a global corporation, we are able to assist them in their clean energy initiatives around the world where ever they may have manufacturing facilities or satellite offices.

So, environmental constraints are influencing how world leaders and companies spend their dollars, which in turn creates new and myriad opportunities in the renewable energy sector.

What is Sumitomo Corporation of Americas’ plan for the future?

Sumitomo Corporation of Americas continues to grow its portfolio in renewable power and has extensive experience developing, operating and owning wind, solar and battery storage projects. Why is investing in renewable energy technologies so important?

Our near-term goal is to have a generation portfolio that is comprised of 30% or more renewable capacity. Looking further ahead, our goal within our energy business is to significantly decarbonize our global IPP portfolio. This means maintaining our current investments while adding a significant amount of zero-emission, renewable energy assets.

Simply put, we, as a society, cannot

We are also focused on evaluating what we

19

see as future trends in energy and sustainability. Distributive generation continues to be a major disruptor in this sector and battery technology is at the forefront of energy innovation. With our experience in solar and battery storage projects, we want to help consumers become more directly involved in the production and management of their energy needs.

Another key focus for us is investing in wastewater treatment and desalination facilities. Too often we take for granted that we can go over to our sink and pour a glass of water without a second thought.

Water is one of the most precious resources in the world, and our goal is to leverage SCOA’s infrastructure expertise to become a leader in providing clean drinking water to those who need it.

Sumitomo Corporation of Americas is a Gold Sponsor of the upcoming Sustainable Investment Forum. Could you explain your motivations behind being involved in this event?

Sumitomo has a longstanding tradition of corporate social responsibility and giving back to the environment – one that is rooted in our business philosophy and core values.

We often reference our reforestation of the Besshi Copper Mine in Japan during the late 1800’s -- both due to its overwhelmingly positive impact on the local environment as well as the fact that it shows that CSR has always been top of mind for our company.

With that in mind, the SIF is aligned with our company’s business and societal goals.

From my team’s perspective, the fact that the SIF is a finance-focused event makes the program uniquely applicable to us.

We are committed to driving the private sector ’s involvement in financing sustainable infrastructure projects to benefit the economy and the planet.

Private companies and non-government entities need to make a point to invest in and use renewable power systems – and we are the team that can provide the opportunity for them to do so.

energyandecology.com

Issue 6 September 2017

Ecology

EIB supports transition to low-carbon and climate-resilient economy addition to the renewable energy and energy efficiency projects, we are interested, against the low carbon limits, to contribute to the refurbishment of the existing distribution and transmission networks.

With the new Economic Resilience Initiative, the EIB will contribute to achieving sustainable development in the Western Balkans and in Serbia by, interalia, mobilizing investments by the private sector for projects financed on Public-Private Partnership and Project Finance basis. Our intention is to target investments in infrastructure, including energy, among other sectors, with a particular focus on job creation.

Dubravka Negre, Head of the European Investment Bank (EIB) Regional Representation for the Western Balkans.

How much the EIB plans to invest in development of the Western Balkans in the upcoming period and which areas will have priority?

The Bankâ&#x20AC;&#x2122;s support to the Region started in 2001 and today we are one of the largest lenders to Western Balkan economies with EUR 8.7 billion of the approved financing.

We are financing the construction of motorways and by-passes, rehabilitating the national road and railway networks, refurbishing and building of new schools, hospitals, judiciary facilities, municipal infrastructure, as well as providing support to the scientific community through our research and development loan program.

Significant funding has already been channeled into those sectors and we still have numerous ongoing projects where significant funds are to be released.

In the future, we intend to widen further our lending activities under the new Economic Resilience Initiative to sectors such as renewable energy and energy efficiency and the environment, which have a positive impact on climate change.

This year and beyond, the Bank will continue to support health and judiciary infrastructure projects, as well as the railways and road sectors but we also envisage continuing support of SMEs, through the commercial banks and national promotional banks.

More support for Serbiaâ&#x20AC;&#x2122;s resilience to migrant crisis is also being envisaged in the upcoming period.

Under the Resilience Initiative we plan to invest over EUR 3 billion in the Western Balkans in the next three years. We expect that a significant proportion of those funds will be channeled to projects in Serbia, as the largest country of the region.

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To which extent are sustainable development and climate change represented in the EIB portfolio for the Western Balkans?

The EIB supports the transition to a lowcarbon, environmental friendly and climateresilient economy. As the EU bank, we understand the need to promote environmental goals in both developed and developing countries in order to support sustainable development around the world.

As one of the largest providers of climate finance worldwide, we commit at least 25 percent of our lending portfolio to lowcarbon and climate-resilient growth.

The EIB has up to date invested in Western Balkans in the renewable energy sector some EUR 80 million through the contribution to the Green for Growth Fund, which aims to support small scale renewable energy projects such as hydro power plants and wind farms of less than 30 M W, s o l a r e n e r g y ( t h e r m a l a n d photovoltaic), biogas and biomass, (no food-crops) and geothermal projects, through financial intermediaries.

In the Western Balkan region in the last couple of years we have supported the rehabilitation of several hydro power plants in Bosnia with a credit of EUR 90 million, and we are currently involved in the construction of a new hydro power plant of 20 MW. We are also providing technical assistance, through the Western Balkan Investment Framework, for the preparation of the irrigation project in Former Yugoslav Republic of Macedonia, as well as for the two wind parks in Bosnia and Herzegovina.

We are very interested to continue be involved in the Climate Change projects in the region, including renewable energy. In

You recently stated that as part of the support of the WB6 Connectivity Agenda the EIB is working on evaluating new projects in Serbia and Bosnia and Herzegovina and in the energy sector. Can you tell us more about these new projects?

The EIB is supporting the Connectivity Agenda and we already have several projects signed in the road and rail sectors starting to be implemented in Montenegro and Bosnia. We are working on appraising new projects in Serbia and BosniaHerzegovina in rail, road and energy sectors. All these projects will contribute to connect people and countries of the Western Balkans and with the Member States, and are very important from the connectivity and regional cooperation point of view which are also important for the EU integration process. In Serbia concretely, we are starting the appraisal of the gas interconnection project. We are looking into similar opportunities in FYR of Macedonia.

What are your impressions of the recent summit of the six Western Balkan countries in Trieste in the field of energy? Are you satisfied with the results?

The Trieste Summit offered the opportunity to build on the achievements of previous Summits in Berlin (2014), Vienna (2015) and Paris (2016) â&#x20AC;&#x201C; and to progress further in several areas of cooperation, in particular in the connectivity agenda, which is and will remain the core element of the process, and in the regional integration process. results to citizens.The Trieste Summit reviewed progress in the implementation of the projects that were launched at the 2015 and 2016 summits and welcomed the start of important construction works. More will follow before the end of the year.

energyandecology.com

Issue 6 September 2017

Ecology

Carbon capture’s new material we’ve got is a fast material that can deal with a lot of gas at the same time, but that is still good enough to separate carbon dioxide from nitrogen.”

Capturing carbon dioxide on the cheap The key advantage of this, Siavana adds, is cost. “If you can make your filter ten times or a hundred times faster, that means you don't need a million meters squared. You need one hundred thousand meters squared, for example. This means you can cut the cost down by a factor of ten just by using a faster sheet of material.”

A group of researchers from Kyoto University’s Institute for Integrated CellMaterial Sciences, London’s Imperial College and City University of Hong Kong have created a new ‘mixed matrix membrane’ filter they claim can make carbon capture and storage more affordable and more selective. Lead researcher, Easan Sivaniah, speaks to Patrick Kingsland about the project.

Some 5,000 years ago when the people of ancient Mesopotamia discovered that smelting tin and copper could produce a material better than either alone, it was the start of a new historical era.

Metals too soft for any practical purpose could now be transformed into a material both malleable when hot and hard when cooled. Animal bones and chipped flint were quickly replaced by new tools and weapons, and the Bronze Age was born.

It’s a discovery that Easan Sivaniah, researcher at Kyoto University’s Institute for Integrated Cell-Material Sciences (ICEMS) cannot help but mention when he discusses his work in the carbon capture and storage (CCS) field.

The carbon super filter Using nano-sized additives – pioneered by Japanese scientist Susumu Kitagawa – and a polymer called PIM-1, Sivaniah’s research team has developed new ‘super filters’ which he claims could make CCS more affordable and more selective than ever before.

“Like the Mesopotamians, we’ve taken two materials which by themselves are okay but 21

together create a much more powerful combination,” he says.

These super filters differ from the ones commonly used in CCS to separate CO2 from other gases produced during the combustion process.

“You could just capture everything and stick it underground,” Sivaniah explains, “but that would mean putting 80% nitrogen beneath the surface, which is pointless. What you want is a technology that can purify carbon dioxide by up to 100%.”

In current CCS technology, “the filters are so slow”, Sivaniah says, “which means you need to have a lot of them and a large area in order to deal with the amount of gas that is coming out of the power station. You are talking about millions of meters squared of filter area.”

Instead of simply adding more filters, Sivaniah says the industry should use one that is much quicker. “Let's say you want to make a cup of coffee for yourself,” he says, as an example. “If you have a coffee filter and you boil the hot water, you have a cup.

But let's say you want to make a cup for ten people. Now you have a choice. You can either get ten filters that all work at the same speed. This will increase your cost by ten.

Or you can get one filter which is ten times faster and makes ten cups of coffee in the same amount of time.”

The new membrane Sivaniah and his team have created promises to drastically speed up the CCS process without compromising the filter’s ability to separate materials.

“With most filters, the faster something goes through a material the less good it is at separating stuff out,” he explains. “What

As things stand, expense is a major factor turning people away from CCS, and from several aspects. “In the average-sized power station, which is roughly about 1,000MW, a single stripping unit is going to cost about $2bn,” Siavana says. “If you times that by all the power stations in the world, what you end up with is a number that is something like half of the gross domestic product of the entire world.”

This money, Siavana continues, is being used to glean a by-product that companies can’t even sell. “You are talking about absorbing or cleaning up a material that nobody actually wants,” he says. “It's not like you are cleaning the water of gold particles which you can sell on somewhere.

There is a cost involved but you don't get a direct payback as a company.

Additionally, consumers don’t want their energy bills to rise. “When you spend more on getting this carbon dioxide out you are increasing the price of electricity,” he says, adding that, “Consumers obviously don't want to see the price of their electricity go up however much they want to see a reduction in Co2.”

Overcoming the ‘Valley of Death’ Put together, these challenges have led many CCS projects into the dreaded ‘Valley of Death’ over the past two to three decades. “There was a recent article in Nature Energy which looked at the history of CCS,” says Siavana.

“The conclusion was that there was a lot of enthusiasm for this stuff. People built their pilot facilities and spent a lot of money. But it never panned out. Everything would get so far but never be implemented to the next level.”

energyandecology.com

Issue 6 September 2017

Ecology

Dirk Forrister, CEO and President of IETA nothing”. This may have been true for the first movers in the UK or Europe or even RGGI, California or Québec in North America. But now it’s a red herring. Many jurisdictions are pricing carbon. That said, most of them are adopting competitiveness provisions, such as the use of free allocation for trade-exposed industries.

Ultimately, the best solution to competition concerns is linkage between systems, which enables all participants covered by those systems to access the same carbon price. This would deliver the ultimate level playing field in climate policy.

Countries around the world are committed to implementing their national climate strategies or NDCs as a part of the Paris Agreement on climate change. According to the World Bank Group, the investment needs embedded in these plans amount to US$23 trillion in emerging markets alone, representing a significant opportunity to grow the global economy.

Firstly, could you please introduce IETA and what you do?

IETA is an international business association that promotes market-based climate policies. Our 135 members cover the wide spectrum of businesses involved in carbon markets, from energy and industrial firms to those providing financial, market, legal or advisory services. To support the Paris Agreement, we are working with policymakers from Europe to China to North America on implementation of carbon market policies.

Our vision is to help form linkages between these markets over time, to ensure that climate goals can be met at lowest economic cost. That way, businesses will have flexibility to make the low-carbon transition, while they continue to grow and prosper.

What are some of the key challenges to developing an effective and active global carbon emissions market?

The toughest challenge is competitiveness.

Every jurisdiction pursuing a carbon market faces a political charge that it is “going it alone” while competitors are “doing 22

The second major challenge is overlapping policies, such as fuel-specific mandates, subsidies and tax breaks. It’s a real temptation for policymakers to adopt a whole suite of climate policies, rather than relying on a solid market mechanism to achieve the goal. These overlaps add inefficiency. They add cost. And they contribute to surpluses in the market. Over time, IETA urges more reliance on the market mechanism and less of a burden of overlapping policies. If we’re to meet the Paris goal of limiting warming to no more than 2°C, then we cannot afford the inefficiencies of policy overlaps.

You have said that 2017 will be a big year for carbon markets, what do you do think will be some of the most significant developments?

Hands down, the biggest development this year will be the launch of China’s national emissions market. China is the world’s largest emitter, and it recognises the need to act. Chinese enterprises are getting ready to engage in the programme, which will be the world’s largest carbon market.

Second, there is a groundswell of action underway as jurisdictions plan their Paris action agendas. A new carbon market opened in Ontario this year, and others are on the way – notably Mexico, Colombia and other Latin American countries are considering new market policies. We will see legislation to clarify the future of markets in the EU, South Korea and California, and we are expecting the International Civil Aviation Organization to determine the types of carbon assets that will be used in the new CORSIA market in the coming years.

countries, and it will set the terms for a new “mechanism to support mitigation and sustainable development”. That’s UNspeak for a market mechanism to replace the Clean Development Mechanism and Joint Implementation programme of the Kyoto Protocol.

IETA has previously been a co-organiser of CARBON EXPO and is now a co-organiser of the inaugural Innovate4Climate, Finance & Market Week. What were your motivations behind your involvement with this event and what do you hope will be its main outcomes this year?

IETA believes in bringing people together to share ideas, make contacts and do business. With the World Bank and other partners, we produce yearly carbon forums in every region of the globe. It has been important for us to support one major global forum that ties it all together. CARBON EXPO had a valiant run for 15 years. Now, we are thrilled to maintain our longstanding partnership with the World Bank on the I4C event.

We saw value in a fresh new model for the post-Paris era. We hope I4C maintains its posture as the largest global gathering of market and financial professionals dedicated to climate protection.

You will be speaking at Innovate4Climate. Could you give us a brief outline of what you will be discussing?

I enjoy the exciting position of chairing a session on the growth of carbon pricing around the world. There’s so much happening – I think participants will benefit from hearing about it all in one place. We’ll talk about the EU, China, Korea as well as the US states, Canada and Mexico. We will also explore how these markets will expand to deliver the low carbon future envisioned by world leaders in Paris in 2015 – and where the business opportunities and challenges will appear. I also hope to shine a light on the ways that markets can help generate the climate finance needed for meeting this challenge.

Third, the United Nations is working on rules for Article 6 of the Paris Agreement.

This will include accounting guidance for energyandecology.com

Issue 6 September 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.

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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 6 September 2017

Ecology

Kristina Cvejanov, President on Serbian Packaging Waste Recyclers Association: There’s no such thing as a free lunch problem of communal waste and historic landfills could cost us dearly in the future.

Our statistics show that we have some 3,500 landfills and more than 100 unregulated dumps and that is a problem but it is also an opportunity for wise, smart and pragmatic solutions. Perhaps we are capable of speeding up the mandatory primary waste selection process, maybe we are brave enough to introduce a landfill tax and “pressure” the local political elites and public-communal sector to speed up the transformation and offer of services to the population modeled on public-private partnership and create a modern and efficient communal service sector.

For years, the waste processing and recycling industry has been making a point that as a state we will not be able to reach European Union environmental standards if we do not restore the Environmental Protection Fund and do not secure efficient collection of eco taxes which are to be invested in the environment. They have been constantly pointing out that there is no efficient system of packaging waste management without a solution which would include 30,000 informal waste collectors and a reform of the public utility services sector, that we need a separate Environmental Protection Ministry and that the capabilities of the administration cannot meet the requirements placed before Serbia by Chapter 27. The European Commission has agreed with most of our comments in its report. They recommend that we should not hurry and that we should consider the comments before submitting proposals on the opening of Chapter 27, but we seem to have rushed forward. In opening it, not in providing proper solutions.

Let us make it clear – noone has more reason to be happy about the opening of Chapter 27 than the recycling industry.

However, in our case there is some anxiety.

Namely, the trait of the economy is to be realistic and cautious and understands that all those fine lines which connect it with the environment that it operates in. For that reasons, there is no one who understands better than the Serbian waste processing industry how far away we are from the EU standards defined in numerous directives in the field of waste management. We do not want to slow down the negotiation process, 24

we want to speed up the process of resolving the large number of problems which have piled up in this field because we are aware that there will be a painful reality check at the end of the European road if we do not do this.

Europe does allow flexibility but does not tolerate failure to meet deadlines and that is something we, southerners, are prone to do.

Landfills and damps are not to take us to EU Late in April, the European Commission decided to take Romania and Slovenia to the European Court of Justice for failure to implement EU directives on waste management. For those of you who don’t know, this means that both countries will have to pay hundreds of thousands of euros in fines if the court rules against them.

Maybe this news did not draw the attention of Serbian media but it certainly should have drawn the attention of both the negotiation team and the government in Belgrade and that is something that Siniša Mitrović, Director of the Circular Economy Centre at the Serbian Chamber of Commerce, agrees with.

“At a time when Serbia is creating its platform for negotiations with the EU, the report that the European Commission is taking Romania and Slovenia to court for not implementing EU directives on waste management comes at the best possible time for our political decision makers. Every “building up” of figures on our situation and “hastily promised speed” in solving the

“The Republic of Serbia, having seen the negative experiences of the countries from the region, should work in continuity to solve open issues is establishing a waste management system while taking strategic decisions, including an achievable time frame to shut down unsanitary and unregulated landfills. The European Commission does not forget deadlines and accepted obligations. Failure to meet agreed deadlines carries a high price in money from the budget of the state which does not respect its obligations,” Sandra elaborated.

Romanian example as a warning The example of Romania is even more important to Serbia because of the many similarities between the two countries. The problem with adopting strategic documents are well known to our government.

Romania under-performed in the field of waste management with a 72% landfill rate that left it far below the EU average of 25.6% in 2015. In Serbia the land-filling stands at 95%.

Like Serbia, Romania left the management of packaging waste to system operators, so-called organizations for the extended accountability of manufacturers which the “polluter” companies use to make sure that the waste packaging from their products is collected and passed on to recycling companies. Unlike Serbia which has absolutely no operator system control, the Romanian environmental inspection and prosecution launched an investigation in 2015 over charges that the reports on amounts of recycled packaging waste claimed significantly larger amounts of waste than actually collected and recycled.

energyandecology.com

Issue 6 September 2017

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OIL&GAS

Oman the largest oil and natural gas producer in the Middle East (4%), and Portugal’s Partex (2%) also own stakes.5 In addition to the PDO, the Oman Oil Company (OOC) is responsible for energy investments both inside and outside of Oman. The OOC is fully owned by the government. The Oman Oil Refineries and Petroleum Industries Company (ORPIC) is owned by the Government of the Sultanate of Oman and by the OOC. It controls the country’s refining sector and owns both of Oman’s operating refineries, Sohar and Mina al-Fahal.6

Located on the Arabian Peninsula, Oman’s proximity to the Arabian Sea, Gulf of Oman, and Persian Gulf grant it access to some of the most important energy corridors in the world, enhancing Oman’s position in the global energy supply chain (Figure 1).

Oman plans to capitalize on this strategic location by constructing a world-class oil refining and storage complex near Ad Duqm, Oman, which lies outside the Strait of Hormuz (an important oil transit chokepoint).

Like many countries in the Middle East, Oman is highly dependent on its hydrocarbons sector. The Oman Ministry of Finance stated that finances have been severely affected by the decline in oil prices since mid-2014. In 2016, Oman lost more than 67% of its oil and natural gas revenues compared with oil revenue the country earned in 2014, despite achieving record production.1 Oil revenue accounted for 27% of Oman’s gross domestic product (GDP) in 2016, a decrease from 34% of GDP in 2015 and 46% in 2014, according to the Central Bank of Oman.2 The ninth iteration of the Oman 5-Year Plan (2016-2020) released in 2016, created in the context of sustained low oil prices, aims to enhance the country’s economic diversification by adopting a set of sectoral objectives, policies, and mechanisms that will increase non-oil revenue. Oman’s diversification program is largely aimed at expanding industries such as fertilizer, petrochemicals, aluminum, power 26

generation, and water desalination.

Concerted efforts to develop these sectors would also accelerate non-oil job growth in coming years.3 However, with rising production levels and a growing petrochemical sector–which relies on liquefied petroleum gases (LPG) and natural gas liquids (NGL)–the country is unlikely to significantly alter its dependence on hydrocarbons as a major revenue stream in the short term.

Petroleum and other liquid fuels Oman’s petroleum and other liquids production averaged more than 1 million barrels per day in 2016, its highest production level ever. Oman was on track to maintain this production level in 2017, but it reduced production to approximately 970,000 barrels per day in early 2017 to meet the production cut it agreed to, along with members of the Organization of the Petroleum Exporting Countries (OPEC).

Sector organization The Ministry of Oil and Gas coordinates the government’s role in Oman’s hydrocarbon sectors. Final approval on policy and investment, however, rests with the Sultan of Oman. The majority state-owned Petroleum Development Oman (PDO) holds most of Oman’s oil reserves and operates the Sultanate’s largest block, Block 6. PDO is responsible for more than 70% of the country’s crude oil production.4 In addition to the government’s 60% ownership stake in PDO, Shell (34%), Total

The U.S. firm, Occidental Petroleum (Oxy), is the second-largest operator after PDO and has the largest presence of any foreign firm in Oman. Oxy operates mainly in northern Oman at Block 62 and Block 9, along with the Mukhaizna field in the south.

Lebanese independent, Consolidated Contractors Energy Development (CCED), operates Blocks 3 and 4 with a 50% stake alongside Sweden’s Tethys Oil (30%) and Japan’s Mitsui (20%). Daleel Petroleum is a 50:50 joint venture between Omani private firm Petrogas and Chinese state firm China National Petroleum Corporation (CNPC) and operates Block 5.

Exploration and production Oman’s petroleum and other liquids (total oil) production ranks 7th in the Middle East and ranks among the top 25 oil producers in the world. Oman is the largest oil producer in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries (OPEC). Oman’s annual petroleum and other liquids production peaked at 972,000 barrels per day (b/d) in 2000, but dropped to 715,000 b/d by 2007. Oman successfully reversed that decline, and total oil production has risen, hitting a new peak of a little more than 1 million b/d in 2016 (Figure 3). Enhanced Oil Recovery (EOR) techniques helped drive this production turnaround, along with additional production gains as a result of previous discoveries.

Consumption and refining Oman consumed 186,000 b/d of petroleum and other liquids in 2016, most of which were petroleum products refined at Oman’s refineries and a small amount that was imported.

Oman is not a major refined petroleum product producer, although it has plans to expand the country’s refining and storage sectors. Oman aims to capitalize on its strategic location on the Arabian Peninsula by expanding its refining capabilities.

energyandecology.com

Issue 6 September 2017

OIL&GAS

Oman the largest oil and natural gas producer in the Middle East Oman has two refineries, Mina al Fahal and Sohar. As of early 2017, Minal al Fahal was operating at 106,000 b/d and Sohar at 116,000 b/d.12 Plans are underway to upgrade the facility at Sohar as part of the ORPIC-led Sohar Refinery Improvement Project (SRIP), scheduled for completion in 2017.13 Sohar’s capacity is expected to expand to 197,000 b/d from 116,000 b/d. In February 2017, ORPIC announced the mechanical completion of all Sohar units as part of the expansion project. A major bunkering and storage terminal near Sohar is scheduled to be completed in 2017, and the facility’s location outside the Strait of Hormuz could make it an attractive option for international crude oil shippers.14 The OOC and Kuwait Petroleum International (KPI) have signed a partnership agreement for their Ad Duqm Refinery and Petrochemical Industries Company (DRPIC) joint venture to build a 230,000 b/d export refinery in a special economic zone under development at Ad Duqm on the Arabian Sea coast of central Oman and a 200 million barrel crude oil storage terminal at Ras Markaz.15 The storage terminal, with phase one estimated to be complete in 2019, will be one of the world’s largest crude oil storage facilities.16 The Ad Duqm refinery could be operational by 2022, with most of the plant’s output to be exported.17 According to the OOC, the cost of developing the refinery will be $6 billion–$7 billion. Both Oman and Kuwait will provide crude feedstock.

Oman does not have any international oil pipelines, although plans are in place to expand the country’s domestic pipeline infrastructure. The Muscat Sohar Pipeline Project (MSPP), built by ORPIC and scheduled to be completed in 2017, is a 180-mile refined product pipeline that will connect the Mina al-Fahal and Sohar refineries with a new storage terminal near Muscat airport and reduce tanker traffic between the two coastal facilities.

Exports Oman’s only export crude oil stream is the Oman blend, with an API gravity of 32, medium-light and sour (high sulfur- 1.33%) crude. Oman is an important crude oil exporter, particularly to Asian markets. In 2016, Oman exported 912,500 b/d of crude oil and condensate, its highest level since 1999.19 China is Oman’s largest export market, and that country received 78% of Oman’s crude oil exports in 2016, while Taiwan received the second-highest volume, despite falling 27

by almost one-third from 2015 levels.

Thailand, which had previously been a consistent purchaser of 40,000 to 50,000 b/d of Omani exports, bought only two small cargoes in 2016.

Natural gas The greatest growth potential for Oman’s natural gas production is in the KhazzanMakarem field, Block 61. The planned start–up of that field in late 2017 could significantly ease pressure on Oman’s natural gas supplies.

PDO has an even greater presence in the natural gas sector than it does in the oil sector, accounting for nearly all of Oman’s natural gas supply, along with smaller contributions from Occidental Petroleum, Oman’s largest independent oil producer, and Thailand’s PTTEP. The Oman Gas Company (OGC) directs the country’s natural gas transmission and distribution systems. The OGC is a joint venture between the Omani Ministry of Oil and Gas (80%) and OOC (20%). Oman Liquefied Natural Gas (Oman LNG)–owned by a consortium including the government, Shell, and Total–operates all liquefied natural gas (LNG) activities in Oman through its three liquefaction trains in Qalhat near Sur. Exploration and production Oman’s potential for natural gas production growth may be substantial, supported by promising developments in several new projects.

that it would divert all its exported volumes of natural gas away from foreign markets and toward domestic consumers by 2024.

The greatest growth potential for Oman’s natural gas production is in the KhazzanMakarem field in BP’s Block 61. The field is a tight gas formation, and BP proposed two phases to develop the 10.5 Tcf of recoverable gas resources. Combined plateau production from Phases 1 and 2 is expected to total approximately 1.5 billion cubic feet per day (Bcf/d), equivalent to about 40% of Oman’s current total domestic gas production.This project will involve construction of a three-train central processing facility with associated gathering and export systems and drilling about 325 wells over a 15-year period.

BP estimates that Phase 1 of the project is more than 80% complete and will be online by the end of 2017.30 The start-up of the Khazzan tight gas field will significantly ease the pressure on Oman’s natural gas supplies.

The Rabab Harweel integrated project (RHIP), located in Block 6, is PDO’s largest capital project underway. The project integrates sour miscible gas injection (MGI) in multiple oil reservoirs with production and pressure maintenance of a government gas condensate field, and it will also contribute to easing Oman’s overall natural gas demand. The RHIP is slated for completion in 2019.

Exports

According to the Oil & Gas Journal, Oman held 23 trillion cubic feet (Tcf) of proved natural gas reserves in 2016.22 Oman’s natural gas production grew to 1.16 Tcf in 2016, turning around a recent decline and surpassing the previous high of 1.15 Tcf in 2013. Approximately 80% of production was from non-associated fields.

Oman is a member of the Gas Exporting Countries Forum (GECF) and exports natural gas as LNG through its Oman LNG facilities near Sur, in the Gulf of Oman. In 2016, Oman exported 358 Bcf of natural gas.Nearly all of Oman’s natural gas exports go to South Korea and Japan, accounting for 80% of exports in 2016.

Consumption more than doubled from 2006 to 2016, increasing from 380 billion cubic feet (Bcf) in 2006 to 820 Bcf in 2016 (Figure 6). Oman consumes slightly more than 70% of the natural gas it produces. Natural gas is becoming a key source of energy to the Omani economy with its increased focus on economic diversification away from oil.24 The Central Bank of Oman estimates that demand for natural gas will continue to rise going forward with the number of energyintensive industries coming online combined with rising demand in the electric power sector.25 The concern over rising natural gas consumption prompted the Oman LNG company to announce in 2015

Oman’s natural gas sector grew in importance over the past two decades, largely the result of two LNG trains that opened in 2000 at the LNG complex at Qalhat, near Sur, operated by Oman LNG (a joint venture between PDO and other shareholders). The third LNG train, operated by Qalhat LNG SAOC and built alongside the two existing trains, entered into production in 2005. Qalhat merged into Oman LNG in 2013. Its main shareholders are the Omani state (51%) and Shell Gas B.V (30%).

energyandecology.com

Issue 6 September 2017

OIL&GAS

Converting natural gas to LNG A standardised product made up of packaged modules This point-of-use production plant is a standardised product made up of packaged modules that may include power module(s), compressor module, process module and a gas conditioning module. Natural gas powers the unit (if grid power is not used) and is also used as the process refrigerant to eliminate complexity and maintenance. So, this system recycles off-gas and uses it to power the plant.

Flexible, efficient and reliable The Dresser-Rand business’ LNGo natural gas liquefaction system is a modularised, portable natural gas liquefaction plant designed to provide onsite natural gas liquefaction. The low-pressure system is sized to produce approximately 7,000 gallons (26.5 cubic metres) of liquefied natural gas (LNG) per day, while the highpressure system is sized to produce approximately 30,000 gallons (113.5 cubic metres) per day.

Stranded wells typically found in newly developed gas fields or at the edge of the existing fields with immature gas gathering infrastructure are ideal candidates for the LNGo system. Gas reserves contained in remote areas can represent billions of dollars in unused assets. And building landbased LNG production facilities can be costly, complex and time-consuming.

The LNGo system’s versatility is an attractive feature. The micro-scale LNGo solution can be deployed in rough terrain or remote regions, eliminating the need to establish an expensive gas pipeline infrastructure or arrange for long-distance trucking of LNG from centralised plants to point of use. It can function as a decentralised solution where the requisite pipeline infrastructure is lacking, or as an onsite transformation solution to reduce or eliminate flaring of gas at, for example, oil rigs or producing gas fields. The system provides a small-footprint, low-cost alternative to pipelines and enables stakeholders to monetise stranded gas assets economically and reliably. And it can be moved to another location once the well is depleted or a pipeline infrastructure is put in place.

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The system uses proven engineered product technologies from Siemens and the Dresser-Rand business. The MOS highspeed reciprocating compressor includes components designed to enhance performance. The compressor frame and cylinders are matched to provide years of smooth, reliable and efficient compression service when operated within OEM recommendations. The Guascor natural gas engine that powers the system’s generatorsets uses leading technology and produces low emissions.

In addition to enabling stakeholders to monetise stranded gas, the LNGo system eliminates environmental concerns such as flaring. Flares are typically associated gas or lower value process gas that requires gas pre-treatment. With the LNGo system, flaring is avoided or substantially reduced.

The purge flow from gas conditioning is blended into the fuel supply to the power module.

The gas conditioning module removes CO2, H2O and many of the heavy hydrocarbons (C3+) from the incoming feed gas stream.

Clean, dry gas ensures optimal liquefaction performance.

The system integrates complete control of all modules of the LNGo system for both the low-pressure and high-pressure systems.

Remote-capable control logic is available with wireless instrumentation and transmitters and can be used wherever it is advantageous and code compliant.

This helps ensure system reliability and uptime. Full turn-key installation and commissioning services are available, as well as routine operation, monitoring and maintenance contracts to ensure ongoing reliable and available operation.

The gas conditioning module cleans and separates pre-treated gas into one product stream for the liquefaction process and one purge stream for power generation. The process module contains all liquefaction process equipment and employs four cooling phases. The compressor module provides four stages of gas compression.

The power module houses the motor control centre and system controls and provides power for the entire LNGo low-pressure (LP) system.

First LNGo system commissioned The Dresser-Rand business commissioned its first micro-scale natural gas liquefaction system at the Ten Man LNG facility in Pennsylvania, US, in 2016. The LNGo solution allows the operator, Frontier Natural Resources, to monetise stranded gas assets at Tenaska Resources LLC’s Mainesburg field, located in the Marcellus shale play.

Frontier Natural Resources is an independent natural gas producer focused on developing conventional and unconventional resources.

Siemens offers the full LNG portfolio With the acquisitions of Dresser-Rand and Rolls Royce Energy’s gas turbine product line, Siemens has expanded its product and services portfolio for LNG clients. Now, the global player is taking over as a singlesource supplier for all the mission-critical technology. The Siemens’ design for LNG projects secures the best total cost of ownership and maximises uptime to keep production flowing. With the largest service network in the industry, Siemens can help maximise uptime and operational reliability and offers the power of digitalisation to give customers better decision-making capabilities by turning data into real-time useful information.

LNG customers can select the most suitable solution for their projects, whether in applications for industrial or aero-derivative gas turbine-driven compression, or all electric. LNG and gas-to-power applications in remote areas.

energyandecology.com

Issue 6 September 2017

OIL&GAS

Baltic countries seek Norway gas link UK’s offshore oil and gas facilities at almost £60 billion ($78 billion) in 2016 prices, based partly on a survey of operators’ intentions.

But there is scope for reducing that sum by up to 35% to just below £39 billion ($51 billion), OGA believes, through developing more innovative contracting approaches and sharing lessons from completed decommissioning projects. One of the more promising initiatives the authority cited is the UK’s multi-operator well plugging and abandonment (P&A) campaign. According to the Aberdeen-based Oil & Gas Technology Centre, P&A activity accounts for around half the UK’s decommissioning costs.

Applications to remove platforms are starting to come in thick and fast.

Finland’s government has authorized construction of the second trans-national gas pipeline through the Baltic Sea, after Russia’s Nord Stream. The 81-km (50-mi) Balticonnector system will link the Finnish gas distribution network to the Baltic countries to the southeast, via a landfall on the Estonian coast. The European Union has agreed to fund 75% of the costs of the project, which is due to be completed by 2020. State-owned Baltic Connector Oy has asked five contractors to bid for the offshore installation and four others to tender for supply of the offshore pipes.

Danish engineering group Ramboll Oil & Gas undertook the feasibility study for the pipeline last year, under a joint venture with Ernst & Young and Gazoprojekt. Now Ramboll is working on another study for the proposed Baltic Pipe, another of the EU’s ‘projects of common interest:’ this would link to the Norwegian gas trunkline network via an onshore gas reception terminal at Nybro, Denmark. From there, gas would be exported through another new subsea pipeline connecting to the Polish transmission system and on to other markets in Eastern Europe. The conceptual engineering focus for the subsea line is on route selection, cost, mechanical design, crossings and preparation of survey specifications. All being well, up to10 bcm/yr could be flowing from Norway to Eastern Europe by 2022.

offshore Norway. The other two, Aasta Hansteen and Johan Sverdrup should start up respectively in 2018 and 2019. Gina Krog, comprising the Dagny and Ermintrude discoveries, started out as a small gas accumulation when first proven in 1974; more concerted exploration of the area three decades later uncovered large oil volumes, in addition to gas/condensate.

The development, in water depths of 110120 m (361-393 ft), features a conventional, fixed production platform with 20 well slots Statoil initially plans 11 production wells and three injectors - with an FSO alongside. Oil is exported via buoy loaders while the gas is piped to the Sleipner A platform to the southeast for processing. Gina Krog, like Sverdrup, will also be connected to a new subsea power network linking all the fields in the Utsira High region, due to become operational in 2022.

Gina Krog delivers first oil

In the Norwegian Sea, Statoil and its partners have opted to develop the 5-bcm Snefrid Nord gas field via a well drilled from a new single-slot subsea template in 1,312 m (4,304 ft) of water. This in turn will be tied back to the Aasta Hansteen spar through the Luva template, 6 km (3.7 mi) away. Statoil has also secured approval from the Norwegian authorities to proceed with its redevelopment plan for the Njord field in the Norwegian Sea, involving upgrades to the production facilities; and to extend the lifespan of the Gullfaks B platform in the North Sea, installed in 1987, until mid-2036.

Statoil has produced first oil and gas from Gina Krog, one of the company’s three platform-based greenfield developments

Britain’s Oil & Gas Authority (OGA) estimates the price of decommissioning the

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Marathon is seeking approval to start decommissioning the Brae area complex in the UK central North Sea, initially focusing on the Brae East platform, which came onstream in 1993 and the Braemar subsea facilities, online since 2003. Both are due to cease production by end-2020. Marathon plans to remove Brae East’s 20,000-metric ton (22,046-ton) topsides for subsequent recycling/disposal onshore.

In the southern UK gas basin, Centrica is preparing to apply to remove remaining infrastructure in the A Fields complex, where production ceased last year, 50 years after drilling of the first well. The wish-list comprises nearly 9,000 metric tons (9,921 tons) of production equipment, including the Audrey A and B platforms, and P&A’ing of 23 wells. Centrica’s 3.4-bcm Rough gas storage platform in the same sector is also facing closure after analysis revealed integrity issues concerning some of the wells and other facilities.

Norway, Faroes launch license rounds Norway’s Petroleum and Energy Ministry is offering 93 blocks in the Barents Sea and nine in the Norwegian Sea under the country’s 24th licensing round, with bids due in by Nov. 30. Awards should follow during the first half of 2018. On offer is a mixture of new exploration acreage and areas close to existing acreage and discoveries.

Also under way is the Faroe Islands’ 4th licensing round, which has an application deadline of Feb. 17, 2018. Since the first round was opened early this century various groups have drilled nine wells off the Faroes, with sub-commercial hydrocarbon discoveries.

Scope to trim UK decom costs

energyandecology.com

Issue 6 September 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 6 September 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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Issue 6 September 2017

OIL&GAS

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energyandecology.com

Issue 6 September 2017

OIL&GAS

Ciprian Alic, Transgaz: Romania Can Play Dual Role in Ensuring New Gas Volumes in SEE TYNDP are jointly assessed at an energy system-wide level to identify how they contribute to mitigating the investment gaps. To ensure a European-wide perspective, it is therefore fundamental that all relevant projects, promoted both by TSOs and third-party promoters, are submitted as part of the TYNDP project collection. For those projects that in particular wish to take part in the PCI selection process, submission to TYNDP is a pre-requisite under Regulation (EU) 347/2013.

Model accompanied by timely and proper implementation of Network Codes (NCs) to further enhance the creation of the Internal Gas Market.

The key pre-requisite for a wellfunctioning hub is the implementation of an entry-exit system per market area built on a Virtual Trading Point (VTP) configuration, which is used as a unique location for the title transfer of gas and for balancing gas accounts.

Ciprian Alic, European Funds Accessing and International Relations Division Transgas

Apart from the Southern Corridor (SCP, TANAP, TAP) you have said that the BRHA (Bulgaria-Romania-HungaryAustria) pipeline is feasible.

Transgaz's biggest challenge has two major dimensions, said Ciprian Alic from the Romanian natural gas transmission system operator (TSO).

Romania can play a dual role in ensuring new volumes of gas in the region. On completion of gas interconnectors with Hungary, Serbia and Bulgaria, Romania will gain access to additional gas quantities from the North-West European region (via Austria and Hungary), and from the Southern Gas Corridor (via Greece and Bulgaria) based on sources of gas routed from the Caspian region, Central Asia and the Eastern Mediterranean in addition to the volumes already imported from Russia.

The recommendations of the ACER Market Monitoring Report published on 09/11/2016 are needed to alleviate any remaining infrastructure gaps. In a few EU Member States, the lack of interconnectivity seems to explain the high upstream HHI market concentra -

”On the infrastructural front, Romania is truly committed to further integration with the EU market and the creation of a SEE region-wide trading place. In the case of Ukraine route disruption, the situation for the South-Eastern part of Europe is foreseen to improve significantly by 2020 thanks to the commissioning of projects for which the final investment decision has already been made.

The start-up of the development on Romanian territory of the National Gas Transmission System on the Bulgaria Romania - Hungary - Austria bidirectional transmission corridor (currently known as "ROHUAT/BRUA"- granted Project of Common Interest (PCI) status from the 2nd PCI list) is a major priority for Transgaz,” Alic explained.

You have said that there are many concepts and projects on the table looking for European grants (CEF) or cheap money for investments. Only a few of the various pipeline projects in the region will ever be realised. Which of these projects would you bet on and why?

According to the European Network of Transmission System Operators , one of the specific ten-year network development plan tasks is to identify the investment gaps, where missing infrastructure prevents achievement of the pillars of the internal energy market: sustainability, security of supply, competition and market integration.

Subsequently, the projects submitted to the 35

How great a demand for gas do you expect in the near, and the slightly more distant, future in the SEE region?

Taking into consideration the report by E3G from June 2015 titled Trends and Facts about European Gas Consumption, inflated gas consumption projections can skew the economic evaluation of new projects. Gas infrastructure investments made in expectation of rising demand are at risk of becoming stranded assets if the increase in gas demand does not materialise. The Eastern European gas demand, by comparison, is very small, with countries of the “Visegrad+2” group (Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria) accounting for just 12% of EU28 gas demand.

tion values.

Examples of such critical gaps are the bidirectional corridors that are planned to connect, respectively, GreeceBulgaria-Romania-Hungary and Poland-the Baltics. The same report emphasises that Bulgaria, Greece and Romania are called upon to implement their pending VTP legislative proposals.

Where are, in your opinion, the biggest business opportunities in the gas sector and for whom, and, to be more specific, in what kind of gas project would you invest?

It is quite difficult to make such appraisals as there are optimistic prospects for the entire gas sector and it is a productive business.

Nevertheless.

I would sum up by saying that, as far as gas is concerned, the future also belongs to innovation and technology.

A liquid gas market is indicative of reliable price signals and ensures efficient use of gas in the short-term and promotes an efficient allocation of capital in the long-term.

How do you envisage these gas markets in the future integrated with the CEE gas markets? Through which pipelines and countries will the interconnectors lead?

Member States ought to complete the implementation of the third package and of initiatives such as the Gas Target energyandecology.com

Issue 6 September 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 36

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 6 September 2017

MINING

Will President Macron resurrect the French mining industry? information, on competition and prospecting, operating and extraction permit criteria, and environmental protection and waste management.

“Through the overhaul of the mining code, which is widely consulted, and work on the responsible mine, we want to restore prospects to this activity,” he told LesEchos in 2015. “First, by clearly saying that metropolitan France and overseas have a mining future,” he continued. “There are a lot of exploitable minerals, and we have had a strong tradition and culture in this area.

France’s youngest ever president has inherited a nation deeply divided along class and economic lines. Turnout in the election was the lowest in nearly 40 years; almost one-third of voters chose neither Macron, a Europhile centrist, nor the nationalist Marie Le Pen, while a further 12 million people abstained.

Central to Macron’s strategy to win over the doubters are ambitious labour law reforms aimed at kick-starting France’s economy.

What role, if any, does mining play in the new president’s plans?

In his previous position as Minister of Industry and Economic Affairs, Macron approved a number of domestic mineral exploration projects and supported plans to overhaul the country’s mining code.

“There is a wealth under French territory, especially gold, in metropolitan France and overseas,” he told news agency LesEchos.

“Given the economic stakes we have, we would make a profound mistake by not exploiting it,” he added. “We must, therefore, lift the taboo which suggests that we could no longer exploit the subsoil of our country. Our imagination remains marked by the mine of the 19th century. In fact, we have the capacity to operate in a sustainable, and environmentally and socially responsible, manner.

French resistance: Macron’s call for responsible mining Macron’s description of mining as a “taboo” is well chosen. Resource exploitation remains a highly emotive issue in France.

The government banned fracking in 2011 and cancelled exploration licences held by companies including Schuepbach and Total SA after protests by environmentalists; a decision upheld by France’s constitutional court in 2013. The nation’s last coal mine closed its doors in 2004.

Unlike in the US, the French state issues mining rights but the resources remain 38

public property.

“In France, there was a real mining culture until the 1980s,” said Macron. “It was strong in some regions, Lorraine, Nord-Pas-deCalais and the south. These regions have retained a high degree of sensitivity in this area, much greater than others. How to explain it? First of all, because they are often misunderstanding the hazardous explanations or approximations given to them − sometimes by the industrialists themselves. There may also be local sensitivities, particularly related to the ‘return’ issue, especially when job prospects are too weak or not clear enough.”

Code red: French mining regulations and state strategy France is rich in natural resources such as uranium and coal, yet imports most of its fuel and mineral raw materials, much of it from Russia. Plans to invest up to €400m in Compagnie National des Mines de France (CMF) − the nation’s first state-owned industrial entity in 20 years − have been shelved.

Macron had envisaged CMF would “reengage France in the global battles for natural resources”, with a focus on speciality metals, including lithium, germanium, tungsten, antimony and rare earths, both inside France and around the world, extending to former colonies in Africa and South America.

However, the travails of nickel miner Eramet, hit hard by a 40% drop in the price of the commodity since 2015, and uranium producer Areva, which last year required a €5bn capital boost, convinced the then government that the time was not ripe to create a third state-owned mining company.

“This strategy requires a very thorough review. We have the first elements, thanks to the BRGM [Bureau of Geological and Mining Research], on the different minerals and on the potential of exploitation: they are real, one can create value. But this is not such as to meet the totality of French needs or to make France a country that can compete with the major mining countries.”

Going underground: is France set for a mini mining boom?

With global commodity prices recovering, and a pro-mining president in the Élysée Palace, there are signs that domestic and foreign mining operators are showing renewed interest in mainland France.

In 2013, the Socialist Government granted permits for a French gold project owned by La Mancha Resources. Since 2014, Australian operator Variscan has been granted exclusive permits to prospect for zinc, copper, lead, gold and silver in the Merléac area and tungsten in the département of Ariège.

Junior operator Sudmine is applying for a permit to search for gold in the French Basque Country.

Macron has pledged his support for the Montagne d’Or project in French Guiana.

Developed by Canadian junior miner Columbus Gold, the site in the north-west of the country is home to proven and probable reserves of 2.75 million ounces of gold, but has faced criticism from environmental groups.

Activists claim the project on the edge of France’s Lucifer Dékou-Dékou biological reserve could cause mineral and chemical waste pollution, deforestation and have a negative impact on biodiversity.

Macron has outlined his support for the redrafting of the country's antiquated mining code, which remains inconsistent with EU rules on public access to energyandecology.com

Issue 6 September 2017

MINING

10 largest mining companies in the world number of operations across the world, including Africa, Australia, Finland, and of course Russia.

7 | Barrick Gold In 2016 alone, Barrick Gold produced 5.52 million ounces of gold. More than 75 percent of its gold production comes straight out of its Americas operations, including Argentina, Canada, Dominican Republic, Peru and the U.S. The company was founded in 1983 and is projecting production levels of around 5.2/5.6 million ounces of gold for 2017.

8 | Freeport McMoRan

1 | Alcoa Alcoa, founded in 1888, is a global aluminium and metals engineer and manufacturer.

Aluminium from the company is utilised in aircraft, automobiles, commercial transportation, packaging, oil and gas, defence and industrial applications all over the world.

The company has seven active bauxite mines globally, operating four of them and producing more bauxite than any other company in the world.

2 | Glencore Glencore is a major mining player. As one of the largest global diversified natural resource commodity companies in the world, Glencore produces and trades more than 90 commodities. Glencore has active operations in Africa, South Africa, Asia, Australia, North America, South America as well as throughout Europe.

In amongst its operations, which include Energy and Agriculture, Glencore’s major operation is in Metals and Minerals.

Copper, Zinc & Lead, Nickel, Ferroalloys, Alumina & Aluminium and Iron Ore make up Glencore’s metals and minerals footprint.

coal, semi coking coal, non-coking coal, washed and beneficiated coal. The company was founded in 1973.

4 | Rio Tinto Founded in March 1962, Rio Tinto is now recognised as one of the leading mining companies throughout the world. Operating through five product groups, including Aluminium, Copper, Diamonds and Minerals, Energy and Iron Ore. Rio Tinto currently operates in close to 32 countries across six countries, including Brazil, France, Chile and Canada but the company has the strongest footprint in Australia and North America.

5 | Anglo American With a global portfolio of world-class competitive mining operations and undeveloped resources, Anglo American strives to meet the growing consumerdriven demands of the world’s developed and maturing economies. Anglo American produces copper, platinum, diamonds (through De Beers), Iron Ore Manganese, Coal and Nickel. Founded in 1917, the company boasts a global workforce of around 113, 000 people worldwide.

3 | Coal India

6 | Norlisk Nickel

Coal India Limited is an organised state owned coal mining corporate that had a production of around 79 million tonnes of coal. Coal India operates across 82 mining areas. The company has a wide number of coal and energy products, including coking

Norlisk Nickel is the world’s largest producers of nickel and palladium, as well as one of the world’s largest producers of platinum and copper. The company is also a producer of cobalt, rhodium, silver and gold.

The Russian based mining company has a

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Freeport McMoRan is a major global player in the gold, copper and molybdenum markets. Operating across North America Copper Mines, South America Copper Mines, Africa Mining, Indonesia Mining and Molybdenum, Freeport has significant proven and probable reserves of copper, gold and molybdenum. To date, Freeport stands as the world’s largest publicly traded copper producer. As of December 2016, this stands at an estimated totalled 86.8 billion pounds of copper, 26.1 million ounces of gold and 2.95 billion pounds of molybdenum.

9 | Newmont Mining Newmont Mining is a global gold producer with significant gold and copper properties in the U.S, Australia, Peru, Indonesia, Ghana, Canada and Mexico.

Newmont has well over 90 years of experience since its inception in 1921. The company is also a global frontrunner when it comes to sustainability and ethical operations, striving to maintain world class social and environmental practices.

10 | Vedanta Resources With interests in aluminium, copper, zinc, lead, silver and iron ore – Vedanta Resources is a global diversified company.

Split up into a number of segments, Vedanta’s footprint stretches far and wide through Hindustan Zinc, Bharat Aluminium and Sesa Goa. Vedanta is a proud leader in sustainability, with highlights throughout 2016 including a $3.2 billion investment in community development, a 50 percent non-hazardous waste recycling rate and a global carbon footprint of 42 million mt.

energyandecology.com

Issue 6 September 2017

MINING

Introducing HyLogger: Mineral analysis without delay the obvious partner.”

The deal, explains Parr, “reinforces Australia’s place as a global leader in the provision of mineral exploration and mining technology”.

And Goodey agrees, saying that HyLogger’s mineral analysis technology has the potential to considerably improve the efficiency of Australian mining operations – not least when it comes to cost.

“It’s hard to believe, but drilling – putting holes in the ground – is one of biggest single expenditures a company makes currently,” he explains.

“But the knowledge [from] the ore that comes out of the ground underpins the value chain of all the decisions made from that point onwards.”

It is estimated that almost A$600m is spent each year on exploratory drilling in Australia.

Drilling in search of mineral resources is often a laborious process, and one that often requires bands of geologists, engineers and metallurgists on the ground to manually record drill cores.

Observations can be subjective and inconsistent, or worse still, erroneous, as well as being labour-intensive – all attributes the Australian mining sector wants to shed in its efforts to become more competitive and boost mineral exports.

It has been a concern of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for some time, culminating in the development of a prototype for an automated logging technology.

Cheaper, quicker and more accurate records Driven by a robotic sampling system, HyLogger uses automated hyper-spectral analysis that makes logging drill cores faster and more accurate.

Its performance is based on non-invasive, non-destructive and statistically robust analysis of core, through RGB imaging and hyper-spectral characterisation of core in their original core trays.

Interpretation of the oxide, hydrous and anhydrous silicate mineralogy contained within drill samples is conducted in realtime using the aptly named CSIRO software; The Spectral Geologist.

This software also generates digital images, surface profiles and mineralogical interpretations.

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“HyLogger was created by CSIRO as a tool to perform rapid, automated, hyperspectral core and chips logging to provide contiguous and systematic mineral identification in near real-time,” says Dr Joanna Parr, who leads on mineral resources at CSIRO. “This greatly reduces inaccurate mineral identification and the costs and delays associated with lab analysis.”

Natural fit: the CSIRO-Corescan licensing deal In June, CSIRO – Australia’s federal government agency for scientific research – revealed it had licensed HyLogger to the country’s mining, equipment, technology and services (METS) group Corescan.

The aim is to use Corescan’s international network of hyper-spectral mineralogy labs to deliver the technology to new markets.

“CSIRO has actually been developing the HyLogger technology for close to 15 years now,” says Neil Goodey, Corescan managing director.

“They have focused on a kind of profiling instrument that takes measurements out of the centre of the core. Independent of CSIRO, at Corescan we have been developing an infrared spectrometer. Both contain a similar science, but are different techniques. They complement each other perfectly.”

So this was a natural fit for the two organisations?

“Yes, very much so,” says Goodey, adding, “I think it got to a point in CSIRO where they wanted to seek a commercialisation path outside of the agency. As Corescan is one of the leading groups in this field, we were

Do geologists still have a role to play?

As HyLogger can analyse and measure core objectively, it provides an alternative to the subjective analysis of geologists.

Does this mean we might see a gradual phasing out of geologists in drilling operations at the hands of such technology? Goodey doesn’t think so.

“HyLogger isn’t replacing geologists,” he says. “They still have a lot of input in collating information, but they might not be required to sit out in a field looking at boxes of core trying to decide what there is, feeding that into their geological model, and then making decisions.

Drilling deeper into the global market Beyond Australia, Corescan currently has labs across South East Asia, Canada, the US, Mexico, Peru, Chile and Argentina.

Given that HyLogger has not been built to deal with Australian deposit types specifically, all of these markets are capable of absorbing the new technology.

Nevertheless, the first order of business in unveiling HyLogger to miners closer to home, confirms Goodey.

With mineral exploration increasingly moving ‘undercover’, whereby miners are faced with the challenge of delving deeper to find deposits, reliable and accurate drilling is a necessity.

New technologies, such as HyLogger, could play a large role in ensuring that the Australian mining sector remains competitive for years to come.

energyandecology.com

Issue 6 September 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 41

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 6 September 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.

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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.

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energyandecology.com

Issue 6 September 2017

MINING

Can sand mining ever be green?

Illegal mining activities take many forms, such as operating in prohibited areas, but often the mafia simply works in areas far beyond the remit of the licence.

In India, sand is classed as a minor mineral, as opposed to major minerals such as diamonds and coal. Due to this classification, it is only subject to state and not federal law, so penalties and enforcement vary. For instance, illegal mining in the state of Uttar Pradesh is punishable by two years in prison or a $410 fine, a minor sum when compared with the potential profits.

Demand for sand is high as rapid urbanisation in China and India has created a boom for the mining industry. Fuelled by this, illegal mining has grown, unnoticed and unchecked around the world, destroying ecosystems, waterways and beaches.

Though a seemingly plentiful resource, only certain kinds of sands are actually useful for construction purposes. Desert sand, for example, isn’t suitable for either construction or use as silicon due to its worn, rounded edges, so instead it is river banks and beaches that are being plundered.

The United Nations Environment Programme (UNEP) estimates that 85% of all mining activity in the world is sand or gravel.

Urbanisation and sand mining Since 1950 the number of people living in cities has quadrupled to reach four billion, more than half of the global population.

Sand is predominantly used to make concrete to build the houses needed for bourgeoning populations, but it is also used in glass and electronics. Last year China consumed enough to cover the entire state of New York an inch deep.

As it’s is a relatively cheap commodity, it is uneconomical to import and mines can usually be found within 50km of construction sites. Singapore has increased its total land mass by 20% since the 1960s by dumping sand in its waters.

The material was almost exclusively imported from nearby islands off the coast of Indonesia; two of the islands were mined so excessively that they no longer exist.

Meanwhile, the US is also experiencing a boom, with sand use from the biggest basins doubling between 2012 and 2016.

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Plus, it is being used in hydraulic fracturing, or fracking, as part of a mixture pumped into the ground to extract the natural gas within.

Last year eight million tonnes was used in the US fracking industry, including increasingly popular and cheaper brown sand.

Eroded beaches and dry rivers Sand mining can severely damage environments and ecosystems. Often mined by dredging sea and river beds, the practise poses a threat to biodiversity as creatures and plants are stripped from the depths, and the stirred up plumes suffocate fish and block sunlight from the remaining underwater vegetation. Along riverbanks, mining has changed the path of rivers or, without sand to act as an aquifer, allowed them to dry up entirely. Bridges and other surrounding infrastructure have also suffered; in 2001, a bridge in Portugal collapsed killing 70 people after excessive sand mining damaged the foundations.

But it is the destruction of beaches more than anything else which has brought the reality of mining to the public’s attention, according to Goenka. “Sand mining is damaging because it aggravates the problem of coastal erosion, which is particularly severe in areas that are already experiencing serious problems caused by sea level rise,” says Goenka, “Or by the creation of artificial structures such as jetties or groynes that block the flow of sand in the seas.”

It’s not just environmental but also social damage that follows on from sand mining.

In India a ‘sand mafia’ has been established; a group made up of labourers, suppliers and developers which utilises bribery and muscle controlling the hundreds of millions of tonnes of sand being mined from India’s waterways every year.

Such limited consequences and constant demand ensure the continuation of illegal sand mining, and some suggest that the police and local officials are happy to accept bribes for turning a blind eye to the practices.

Can it be done sustainably?

While legal sand mining operations often take greater environmental care, the question of sustainability remains, as although sand is constantly being created, this happens at a very slow pace.

“Sustainable sand mining is only possible if the quantities that are extracted are less than the quantities that are being replaced through the natural processes,” says Goenka, adding, “Since this varies from month to month and depends on the currents and tidal factors, this is a tricky process and most sand miners do not bother to try and maintain a balance.”

Many companies are aware of the need for sustainable mining practices and seek to minimise potential damage. US Silica, the largest pure-play fracking sand provider in the US, produces a sustainability report every few years, outlining its environmental programme which is focused on protecting local habitats and minimising the company’s operational carbon footprint.

The fact remains that meeting the current demand requires an unsustainable amount of sand. To address this imbalance, campaigners suggest we use other construction techniques to reduce the need for sand. In developed countries, reuse of construction materials continues to grow in popularity, with concrete and asphalt from demolished infrastructures being crushed and recycled. For example, in the UK in 2014, nearly a third of housing materials came from recycled sources, and elsewhere, there can and should be a greater reliance on building materials, such as straw and mud.

energyandecology.com

Issue 6 September 2017