Global Energy News August

ISSUE THREE - AUGUST

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SOLAR PHOTOVOLTAIC ARRIVES AS A MAINSTREAM TECHNOLOGY Page 40

EXXONMOBIL TO ACQUIRE INTEROIL IN TRANSACTION WORTH MORE THAN $2.5 BILLION Page 48

THE FUTURE OF SOLAR POWER – WHAT THIS MAY MEAN FOR SMALL BUSINESSES Page 42

RISK MANAGEMENT IN THE ENERGY SECTOR Page 22

PETROFAC’S WALTER THAIN TO LEAD OFFSHORE OIL AND GAS INDUSTRY EFFICIENCY DRIVE Page 34

COMMISSION'S PROPOSAL ON BINDING GREENHOUSE GAS EMISSION REDUCTIONS FOR MEMBER STATES (2021-2030) Page 30

GOVERNMENT MUST LEARN FROM 'BLINKERED' APPROACH TO ENERGY EFFICIENCY Page 20

CONTENTS

EDITORS NOTE Welcome to the third edition of Global Energy News, featuring the latest deals, appointments, research and news in the global energy sector.

In a compelling feature, Phil Foster of Love Energy Savings shares his thoughts on the future of solar power and what this may mean for small businesses. Whilst less than 2% of the world’s electricity is currently generated through solar photovoltaic technology, a recent report estimated that this figure could increase to as much as 13% by the year 2030.

The European Commission on 20th July published a fact sheet on their proposal on binding greenhouse gas emission reductions for Member States (2021-2030) which we detail in this edition.

The oil and gas sector in the Asia-Pacific region is attracting substantial investments and giving a huge boost to the gearboxes and geared motors market. In addition to an energised oil and gas end-user segment, vendors will also benefit from new technologies that enable superior energy consumption according to Frost & Sullivan’s research.

I trust that you enjoy reading this edition and that you will join us for future editions.

NEWS

WITT ENERGY MOVE HQ TO PSP AFTER RAISING £2.4 MILLION

Innovative cutting-edge green tech energy company Witt Energy has moved their headquarters to Plymouth Science Park. Earlier this year the company successfully completed the world’s fastest and biggest clean-tech crowdfunded equity raise, which was launched at Plymouth Science Park, smashing their target of £750,000 to hit £2.4 million in just six weeks.

Witt Energy has ambitious plans to convert kinetic energy into power using an innovative new energy harvesting technology.

Commercial Executive Merika Kindlon from Plymouth Science Park said: “The continued success of Witt Energy is fantastic news both locally, nationally and internationally. After a successful round of crowd funding it seems right that Witt locate their laboratories and office here at Plymouth Science Park the South West’s largest science park. We are delighted to have Witt on site and excited to see first-hand the ground breaking developments in power generation technology.”

They have developed a patented energy harvesting system that is set to “change the face of renewable energy forever”. The sealed system uses a 3D pendulum to drive a transmission system, converting all motion, in multiple directions, into electricity.

The company said it would now use the funding to move its first device, a 200-Watt marine energy system capable of harnessing kinetic power from waves and tides to provide autonomous power for marine applications, such as large-scale survival units, desalination, offshore fish farms and a range of products that need a constant power source.

Plymouth Science Park is the only science park in the UK to have a dedicated advisory board offering tenants 100 hours of free business mentoring. On average businesses joining Plymouth Science Park grow by 30% in their first year.

The park is situated in 25 acres of wooded land just behind Derriford Hospital in Plymouth and has more than 100 businesses and 1100 staff on site.

Marketing manager Peter Beech said: “PSP was an obvious choice for Witt Energy, providing us with quality facilities in an excellent location. Their advisory board was extremely helpful and it has the added benefit, for us, of being central to many of the Marine companies that we are building relationships with.”

Images: Bowater Communications.

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EURELECTRIC WELCOMES PRIMARY ENERGY FACTOR REVIEW, CALLS FOR IMPROVED METHODOLOGY EURELECTRIC (The Union of the Electricity Industry) has strongly welcomed the European Commission’s decision in July to review the methodology for the calculation of a Primary Energy Factor (PEF). This revision will take place in the context of the preparations of the upcoming legislative proposals on the 2030 Climate and Energy Framework. The European power industry has repeatedly called for an in depth analysis and an improved approach to this important policy instrument.

In comments submitted to the European Commission in reaction to its Discussion Paper on the review of the default Primary Energy Factor (PEF), EURELECTRIC states that the PEF has proved itself to be an instrument that has a major impact on technology competitiveness and the energy carrier choice of final customers. It is therefore essential for the Commission’s recognition that decarbonised electricity will have a growing role to play in decarbonising the energy demand side sectors of the European economy to be appropriately recognised and taken into account in the PEF review process.

EURELECTRIC has said that it will be crucial to avoid a fossil fuel lock-in effect by not adequately recognising the impact of the PEF on the achievement of the EU’s climate change targets. This would not only hinder the decarbonisation agenda, but would also prolong the EU’s import dependence on fossil fuels.

In this regard, EURELECTRIC believes that the future PEF methodology should adequately reflect the strong decarbonisation of the European power sector and the increasing share of renewable energy in the power generation mix. It should also provide an incentive to invest in energy using products based on carbon neutral electricity rather than continued reliance

“Despite the fact that the PEF is only a footnote in current energy efficiency legislation, it has a tremendous impact on customer decision making and represents a major barrier to the decarbonisation and electrification of the downstream sectors,” said EURELECTRIC Secretary Hans ten Berge.

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on fossil fuels. Regular reviews of the PEF to reflect the fast changes in the power mixes are needed, and in order to ensure long term consistency, these reviews should be aligned with the processes agreed under the Paris Agreement on climate change.

highlighted that the current application and calculation of this policy tool is in strong need of revision since, in its current form, the PEF undermines the EU’s climate and energy goals and slows down the process for the EU’s transition to a sustainable economy & society.

EURELECTRIC therefore called for the adoption of a forward-looking PEF conversion factor.

Last year, EURELECTRIC published a paper on the application of the Primary Energy Factor in EU legislation. The paper

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NEWS

TURKEY’S AKFEN HOLDING EYES 1,000 MW RENEWABLE CAPACITY WITH SUPPORT FROM THE EBRD AND IFC Akfen Holding, a leading infrastructure group in Turkey, is set to increase its renewable energy portfolio to 1,000 MW with support from the European Bank for Reconstruction and Development (EBRD) and from the International Finance Corporation (IFC), a member of the World Bank Group.

The two international financial institutions have each acquired a 16.67 per cent stake in Akfen’s recently established subsidiary, Akfen Renewable Energy. Their capital injection of US$ 200 million will help the company become one of the largest producers of renewable energy in Turkey.

leading platform which will generate energy from local renewable energy sources and in which corporate investors can become partners.”

EBRD First Vice President Phil Bennett commented: “We at the EBRD believe strongly in the long-term fundamentals of the Turkish economy in general and in the potential of the country’s power market in particular. Turkey remains reliant on imported fossil fuels and we welcome the government’s efforts to promote sustainable renewable energy. The EBRD and IFC support will enable Akfen to make a major contribution to the country’s renewable energy sector.”

Afken’s current portfolio of renewable energy projects, including operational hydro and solar power plants, has a total operational capacity of 211 MW, and the company has several wind, solar and hydro projects under development.

Speaking at a press conference in London, Akfen Holding Chairman Hamdi Akın, said: “We expect both institutions to make significant contributions to our company’s long-term valuecreation strategies, its corporate governance, our implementation of best practices in terms of environmental and social standards, our access to institutional investors who follow institutions such as the EBRD and IFC, and our ability to reach global standards in our current policies on transparency and accountability. The equity financing will be used for the construction and development of new projects and the expansion of current renewable energy investment projects.

Dimitris Tsitsiragos, IFC Vice President, Global Client Services, added: “Turkey is IFC’s secondlargest country of operations globally, and in line with World Bank Group’s country strategy IFC has significantly increased its investments in the power sector by investing and mobilising US$ 695 million in the sector over the last three years. Renewable energy is a key and sustainable solution to meet ever-growing energy demand and Turkey benefits from a wealth of renewable energy resources. The private sector has a significant role to play in supporting Turkey’s targets in utilising these resources. We are happy to extend our strong relationship with Akfen into the energy sector and to continue to contribute to the company’s efforts to bolster renewable energy production.”

“By stepping up our partnership with the EBRD and IFC, we plan to become one of the key investors in Turkey in the field of renewable energy. Our goal is to create a brand-new,

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NEWS

ENERGY MINISTER CALLS FOR URGENT TALKS FOLLOWING DECISION TO AXE DECC Energy Minister Paul Wheelhouse in July called for urgent talks with the UK Government following the new Prime Minister’s decision to axe the Department of Energy and Climate Change in Whitehall.

The Scottish Government was already working to safeguard investment in vital renewable energy projects, amidst the uncertainty created by the EU referendum. The decision to scrap DECC has now led to concerns about the Prime Minister’s commitment to tackling climate change and support for renewable energy.

about the UK Government’s climate change ambitions, the move to scrap DECC has also raised questions about what it means in terms of Westminster’s attitude to the North Sea oil and gas industry.

“The sector is attempting to recover from one of its most difficult ever periods, and needs assurances that the UK Government is serious about doing all that it can to support the industry and the jobs it supports. The First Minister has already raised the issue of the decision to axe DECC directly with the new Prime Minister, but I want to take that dialogue further and am seeking urgent talks with UK ministers to outline our concerns.”

The First Minister raised the issue directly with the new Prime Minister when they met in Edinburgh on Friday – and Mr Wheelhouse has now pledged to take the issue further.

Mr Wheelhouse said: “We are looking forward to working with Greg Clark, the UK’s new Energy Secretary, who has often championed the benefits of a low-carbon economy. Mr Clark now has the opportunity to implement his vision by working with us to build on the remarkable progress already made in Scotland.

“But we’ll also be seeking assurances that the UK Government will back our efforts to create jobs and maximise benefits from the renewable energy sector, secure electricity supplies for everyone in these islands, and cut carbon emissions. ”‎

Climate Change Secretary, Roseanna Cunningham, recently announced that Scotland had met its ambitious climate change targets six years early. The Scottish Government has also committed to introduce a new climate change bill which will set a target to reduce emissions by more than 50 per cent by 2020.

Ministers want to secure UK Government support for pumped storage hydro schemes, onshore and offshore wind, as well as interconnectors between Scotland’s island communities. The Scottish Government will continue to operate a single Energy and Climate Change Directorate.

Mr Wheelhouse also intends to highlight the challenges facing the oil and gas sector, which will remain of critical importance to Scotland during its transition to a low carbon economy.

He added: “In addition to raising concerns

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OIL & GAS UK WELCOMES NEW CABINET APPOINTMENTS Deirdre Michie, chief executive of Oil & Gas UK, said: “I’d like to congratulate the Rt Hon Greg Clark MP, the new Secretary of State for Business, Energy and Industrial Strategy, and his cabinet colleagues on their appointments.

“We will be looking to meet with Mr Clark as soon as possible to discuss the challenges our industry is facing and the opportunities the North Sea offers both for business growth and ensuring a secure energy supply for the UK. “We very much welcomed the joined up approach taken by the previous government and we hope ministers will continue to work together across the relevant departments to support our sector.

“Offshore oil and gas is one of this country’s greatest industrial success stories and must remain a linchpin of a UK industrial strategy. Yet we are at a critical juncture

and we need to work with government to address low levels of exploration and development in the North Sea and send a strong message that the UK Continental Shelf is a great place to invest in.

“I’d also like to thank the Rt Hon Amber Rudd MP and Andrea Leadsom MP for their constructive engagement with our sector throughout their time at the Department of Energy and Climate Change and we wish them well in their respective new roles.”

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership, which comprises oil and gas producers and contractor companies, now numbers more than 460.

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ENERGY CONTRACT SEES 100% ELECTRICITY FROM RENEWABLE SOURCES A new sustainable energy contract has been awarded for the supply of electricity and natural gas to the health and social care sector. The four year, £140million deal was awarded by combining the buying power of all six Health and Social Care Trusts, the Health and Social Care Board, the Fire and Rescue Service (NIFRS) and the Business Services Organisation.

Speaking about the contract on 22nd July, Scotland’s Health Minister said: “This new contract will see electricity supplied from 100% renewable sources, flexibility for organisations in how they procure their energy and savings in excess of £4million on electricity during the first year of the contract.

“The health and social care sector can play a leading role in reducing carbon emissions and encouraging healthier lifestyles to combat climate change, save money, and achieve health benefits. By pooling our resources and using the buying power of the entire health sector, we have managed to drive down costs by 20% and contribute to the well-being of our planet by using renewable, sustainable and flexible energy sources.

“I am also delighted that over the course of the contract the suppliers will provide extensive support to HSC organisations in line with the aims of the public health framework Making Life Better. This will cover a wide range of initiatives, for example campaigns and community energy saving awareness schemes, sponsorship of access to events for charities and underprivileged young people, health and wellbeing and volunteering programmes.

It is increasingly recognised that we need strengthened collaboration across all sectors of society if we are to create the social, economic and environmental conditions to support good health and wellbeing, and this is an excellent example of a partnership approach which has added potential to benefit employees, customers and the wider public.”

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FROST & SULLIVAN: FIERCE COMPETITION FROM CHINA AND TAIWAN MANUFACTURERS IN ASIAPACIFIC GEARBOXES AND GEARED MOTORS MARKET The oil and gas sector in the Asia-Pacific region is attracting substantial investments and giving a huge boost to the gearboxes and geared motors market. In addition to an energized oil and gas end-user segment, vendors will also benefit from new technologies that enable superior energy consumption.

New analysis from Frost & Sullivan, AsiaPacific Gearboxes and Geared Motors Fact book (http://www.frost.com/sublib/ display-report.do?id=P8DA-01-00-0000&src=PR), finds that the market earned revenues of US$450.1 million in 2015 and is estimated to reach US$539.4 million in 2020.

“While product features and quality are important criteria for purchase, the emergence of vendors from China and Taiwan has intensified the competition in the market,” noted Frost & Sullivan Industrial Automation & Process Control Research Analyst Terrence Loh. “In addition to products of similar quality, their competitive pricing is drawing attention from the extremely cost conscious market,” he added.

To offset the impact of low-cost products, companies today have to offer valueadditions with their products. This will enable them to differentiate and offer their products at a premium.

“Meanwhile, end users are actively trying to lower their energy consumption and maintenance costs, prompting gearbox and geared motor vendors to supply products that facilitate better operations.

In addition, manufacturers are likely to focus on developing more energy-efficient products in the near future,” Loh explained.

Asia-Pacific Gearboxes and Geared Motors Fact book is part of the Industrial Automation & Process Control (http:// ww2.frost.com/research/industry/ industrial-automation-process-control/ industrial-automation-process-control) Growth Partnership Service program.

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THE MISSING PIECE OF THE ENERGY TRILEMMA PUZZLE

Commercially viable energy storage has the potential to change the game by solving the energy trilemma. But innovative business models are essential if we are to ensure the success of energy storage writes Arshad Saleem, from KIC InnoEnergy’s Thematic Field on Smart Grids and Energy Storage.

The energy trilemma is widely recognised as the need to achieve a low-carbon, cost-effective and secure energy source. It’s like a three piece puzzle – it should be simple to complete – but the commercial models currently in use always leave a piece missing.

Furthermore, the multiple revenue streams generated allow Ferroamp to steal a competitive advantage in the energy storage space and also attract the attention of investors – turning the business into a commercial reality.

So, how do we roll these innovative business models out of a larger scale? Getting industry veterans and larger companies on board to impart their knowledge of the industry will be key.

Fossil fuels are cost-effective and secure, but they are not low-carbon. Renewable energy is clean and costeffective, but intermittent. As such, the majority of the world is currently reliant on generating energy from fossil fuels to fill the troughs in renewable energy supply. But if we are to meet the COP21 targets then it is vital that fossil fuels are gradually phased out.

So, what’s the solution? If we introduce energy storage to the mix it has the power to make renewables secure, but it is traditionally very expensive. It is as if every time the puzzle looks complete, another piece mysteriously disappears.

The technology is there, but smarter business models are required to allow them to take off. Bright minds are needed to convert this game-changing niche innovation into a commercially viable, embedded technology.

It’s my vision to help make this happen. KIC InnoEnergy supports many entrepreneurs, start-ups and businesses to commercial reality.

Take our start-up Ferroamp, for instance. The company’s EnergyHub technology combines local energy storage and solar cells in a single unit. The technology manages the energy produced from the sun, stores the spare generation and collects and processes actionable local production and consumption data.

The EnergyHub’s built-in intelligence also automatically balances the intermittent solar generation and enables commercially viable services including frequency regulation, peak power management and voltage control to grid operators. All these offerings benefit the consumer and the grid by increasing return on investment and improving grid stability.

However, it can often feel like entrepreneurs and the energy industry are opposing forces. The energy industry recognises the need to innovate, but at the same time it is under pressure to increase revenues and reduce risk. Entrepreneurs are more inclined to take risks. They are disruptive, posing difficult questions and seeking answers to solve society’s challenges.

KIC InnoEnergy’s Innovation Director, Elena Bou, says that encouraging the industry to innovate is like teaching an elephant to dance. It’s hard to move a body that big in an agile fashion. The same applies for large energy corporations. Regulation, legacy systems and established processes that have proven effective over years – even decades – of operation make it difficult to be fleet of foot and react quickly to changes in the energy landscape.

But by collaborating with smaller, more nimble companies larger companies can begin to support innovation. While the start-ups can benefit from decades of hard-earned expertise, costly equipment and financial investment. As Elena says: it’s a win-win situation.

Another way to increase the adoption of innovative business models is to continue attracting bright minds to the potential opportunities offered by the energy industry, and more specifically by energy storage.

For the opportunities to become apparent the right support has to exist and the industry needs to come together to celebrate successful breakthroughs.

KIC InnoEnergy works with large energy companies

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across Europe to encourage their buy-in. We also run regular events to attract new ideas to the industry and increase the investment provided to our current startups and projects.

Our Call for Innovation Projects (CIP) is one example of this. Now in its fifth year, the CIP seeks European businesses – start-ups, SMEs or larger, who already have innovative sustainable energy projects at the research and development stage – who need help in getting their product to market. So far through the CIP, KIC InnoEnergy has invested €147 million in helping 78 new products and services become a commercial reality.

We also run an annual event called The Business Booster to support those on the KIC InnoEnergy

Highway, our business accelerator programme. This event is an opportunity for those the Highway to exhibit their technology, and pitch their ideas to larger energy companies. Last year’s event in Berlin had over 100 exhibitors and was attended by the likes of ABB, Alliander, EDF, RWE, Stedin and Total.

It is events like these, coupled with the right support, which will enable innovators to take on the necessary commercial attitudes to drive energy storage to the next stage. Innovation for innovation’s sake is not enough during these times of looming targets.

Innovation with the aim of commercialisation and completion of the energy trilemma puzzle – now that’s game changing.

Web Address: www.kic-innoenergy.com

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TUDOR SHIP THE MARY ROSE FINALLY RELEASED FROM HER ‘HOTBOX’ AND REVEALED DRY FOR THE FIRST TIME SINCE 1545

An important new milestone in the conservation of the famous 16th century Tudor naval ship, Mary Rose, was reached in July. This is the culmination of a 34-year restoration project with 16th century maritime engineering protected by The IMC Group’s 21st century Hanwell technology.

The Mary Rose was built in 1510 and was in service until she sank in 1545. The sunken ship then lay beneath the water for more than 400 years until she was discovered in the Solent in 1971 by a project team initiated by Alexander McKee and the Southsea branch of the British SubAqua Club and finally raised in 1982 by more than 500 divers, archaeologists and scientists who developed new techniques in diving and conservation.

A ‘ship hall’ was actually constructed over the ship in the dry dock, located in Portsmouth Historic Dockyard, in an ambitious and challenging conservation of this officiallylisted monument and 2013 saw the opening of a wonderful new museum.

During the museum’s construction the ship’s hull was contained inside a sealed ‘hotbox’, and in April 2013 the polyethylene glycol (PEG) sprays that gradually replaced the water within the timber were turned off, and the process of controlled air-drying began. Ducts were placed evenly around the ship for the air-drying process to ensure that the ship dried evenly, minimising distortion and cracking of the wood that would occur if some sections dried faster than others.

Specialist engineers from Hanwell – part of the Britishbased IMC Group – were called in to install the firm’s sophisticated technology and 30 environmental monitoring sensors were placed on or near the hull, continuously checking and recording temperature and humidity. The ship is now sufficiently dry to remove the ducts, lower the intensity of the drying system, and open the museum up further to the public.

IMC’s Hanwell technology continues to play a crucial role in protecting the historic ship’s safe passage back into the limelight, explains the Trust’s Head of Conservation & Collections Care, Eleanor Schofield. “The Hanwell monitoring system was easy to set up to give us all the data we needed and we link it to alarms, which are set so that if one sensor reports an environmental factor has become out of tolerance we can react quickly. We

currently have the limits set at 50-58% RH and 18-20C and we’ve had a few alarms, but the system enables us to get the problem sorted quickly, as well as helping us with routine maintenance.”

The IMC Group’s Engineering Director, Dr Martin Hancock said: “Because of the unique nature of the project, we had to design a unique solution. The technology that we introduced gave the conservation team a form of insight and measurement that hadn’t been available to them before, and has proven crucial to the successful completion of their work.”

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Now, the ‘hotbox’ itself has finally been removed and for the first time since 1545 the ship will be revealed dry, along with many of the artefacts recovered from within the ship - fully integrated into the museum environment dedicated to the warship and the historical context in which she was active.

Until now the public have had only a limited view of the ship due to the tightly-controlled environment. Now that the ship is sufficiently dry, it is possible to open more of the ship to visitors. The salvage team discovered only half the ship so as part of the £35m project, galleries representing the lost half of the ship were created, to give visitors a real insight in to what life on board the Mary Rose was like. There are three viewing levels: The top level is a balcony looking down on the ship, the other two levels allow visitors to view the remaining hull on one side and the artefacts found on the Mary Rose on the other side, such as weapons, the crew’s possessions and even musical instruments, all of which help to capture the atmosphere and complete the story.

Hanwell monitoring will continue. “It’s a vital integral part of the conservation programme, added Eleanor Schofield.

“The Hanwell system has been a key indicator in monitoring the drying of the timbers – if something had gone wrong it would have affected the whole ship but there were no isolated areas of concern and we continue to experience a good working relationship with IMC and support whenever needed. Our need to monitor and control the stability of the environment of course continues, measuring and reacting to how changes in weather, visitor traffic and so on affect the ship, so our Hanwell system will continue to be crucially important to the Mary Rose.”

The graph below is an extract from a Hanwell report showing that the mean, min and max readings for both RH and T have been within their limits of 50-58% RH and 18-20C 100% of the time over a 24hr period. If limits were breached the experts would be alerted and would look at their BMS and air handling units and determine if they are providing the right conditions. If not, then adjustments

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ENERGY SAVING TRUST VERIFIES QRL PRODUCT PERFORMANCE IN RADIATOR FIRST

The QRL Radiator Group has become the first radiator manufacturer to be granted ‘verified’ status for its T22 Compact radiator by the Energy Saving Trust – marking the creation of a brand new, dedicated radiator category for the efficiency organisation.

The Energy Saving Trust’s verification scheme provides independent evaluation of product performance for energy-efficient products. After reviewing the results of extensive testing, the organisation awarded the prestigious recognition to QRL’s flagship T22 Compact panel radiator (part of its hi-lo, Barlo and Warmastyle ranges). The verification compared the QRL T22 Compact with like-for-like products from its eight main market competitors – with QRL’s model consistently coming out top in terms of heat output performance.

The Trust’s verification revealed that the QRL T22 Compact radiator had the highest heat output on the market – and the best compatibility with lowertemperature heat sources such as renewables. The results also showed that QRL’s Compact model boasts the highest number of water channels per metre, as well as the lowest water and steel content – all of which make for the fastest heat-up times*.

The QRL T22 Compact will now be listed as a verified product in its own category on EST Register, the Energy Saving Trust’s online database of energy-efficient products. It will appear as the first and only radiator entry, alongside other heating system components, including boilers, heating controls and chemical inhibitors.

Elaine Berry, client relationship manager at the Energy Saving Trust, says: “As an organisation that seeks to help consumers and businesses save energy and money, we recognise the importance of taking a holistic approach to heating system efficiency. Emitters are a crucial part of this, because just like other system components, they can have a significant impact on overall performance.

That’s why it’s so important to opt for an efficient model wherever possible.

“As such, we felt strongly that radiators deserved their own category, and are pleased to welcome QRL’s T22 Compact as the first member. Our verification showed that the product is very clearly leading the market in terms of heat transfer, offering unparalleled performance and the fastest heat-up times available.”

Mike Wright, product development manager at QRL Radiator Group, says: “To be the Energy Saving Trust’s first verified radiator is a huge accolade, and we’re extremely proud to be part of what we see as a landmark development. This is not just a verification of QRL’s unique performance capabilities – we’re also confident that it will help bring an important issue to the industry’s attention: radiator efficiency. Emitters are consistently overlooked when it comes to efficient heating specification, which can seriously compromise wider system performance, and that’s something that we at QRL are working hard to change.

“The fact that the Energy Saving Trust has created a new radiator category is evidence of a shift in industry attitudes. This is an important step forward, as it’s high time we started moving emitters right up the efficiency agenda.”

Energy Saving Trust verification is also underway for several other products in QRL’s panel radiator range, with the results expected later this summer.

For more information about QRL’s Compact panel radiator, or any of the products in the company’s extensive portfolio of market-leading panel, feature and LST radiators, please visit www.qrl-radiators.com

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GOVERNMENT MUST LEARN FROM ‘BLINKERED’ APPROACH TO ENERGY EFFICIENCY

The Committee’s report concludes take up for the Government’s Green Deal loans scheme was “woefully low” because the scheme was not adequately tested.

The forecast of demand for Green Deal loans was excessively optimistic, says the Committee, and “gave a completely misleading picture of the scheme’s prospects to Parliament and other stakeholders”.

It raises concerns that while taxpayers provided £25 million—more than a third of the initial investment in the Green Deal Finance Company—to cover setup and operational costs, the Department of Energy and Climate Change had no formal role in approving company expenditure or ensuring it achieved value for money. £240 million spent stimulating demand for loans The Committee also finds the Government lacks the information it needs to measure progress against the objectives of the complementary Energy Company Obligation (ECO) scheme, including its impact on fuel poverty. The Department implemented the Green Deal and ECO schemes in 2013 to improve household energy efficiency.

It spent £240 million setting up and stimulating demand for loans under the Green Deal, which enabled households to take out loans to pay for efficiency measures which they would repay through their energy bill.

ECO resembled previous energy efficiency schemes, with the Department requiring the largest energy suppliers to install measures that save a set level of carbon dioxide (CO2) or reduce bills by March 2017.

Ensure policy decisions are “thoroughly tested and based on accurate evidence” While the primary aim was to save CO2, the Department also wanted the schemes to work together to improve ‘harder-to-treat’ properties; stimulate private investment in energy efficiency measures and mitigate the causes of fuel poverty.

The UK’s Public Accounts Committee report of July 20th says that failures highlighted by the design and implementation of household energy efficiency schemes put public money at risk and must not be repeated.

Among its recommendations to Government the Committee calls on the Department to ensure policy decisions are “thoroughly tested and based on accurate evidence”, including a robust evaluation of stakeholders’ views.

The Department “should be prepared to pull back on plans if it is clear they are unlikely to be successful and risk taxpayers’ money”, says the Committee, and ensure forecasts laid before Parliament “are clear about the degree of certainty that applies to the numbers used and the likely outcome”. The Report adds: “The Department must not leave itself open to accusations of misleading Parliament to achieve its own ends.”

Meg Hillier MP, Chair of the PAC, said: “The Government rushed into the Green Deal without proper consideration of concerns about its weaknesses. Not enough work went into establishing the scheme’s appeal to households, nor to its implementation, nor to examining the experience of governments setting up similar schemes overseas.

“This blinkered approach resulted in a truly dismal take-up for Green Deal loans and a cost to taxpayers of £17,000 for every loan arranged. Savings in CO2 were minimal.

Accountability to government of the Green Deal Loan Company—which spent public money on the expectation that it would need to support 3.5 million loans, compared to the 14,000 taken up—was institutionally weak.

“The Government is also unable to measure adequately the success of the Energy Company Obligation. There is no doubt householders and taxpayers in general have been ill-served by these schemes and the Government must learn from its mistakes to ensure they are not repeated in this or indeed any other policy areas.”

Caroline Flint MP, a member of the Committee who led questioning during its inquiry, added: “It is clearly desirable to make homes more energy-efficient but the Green Deal in particular was not fit for purpose. It is deeply alarming that the expectations for take-up put forward by the Government should be so wide of the mark, especially

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given the serious concerns raised about the scheme’s design and implementation.

“This, together with its inability to properly evaluate the Energy Company Obligation, paints the picture of a Government hell-bent on implementing a policy regardless of whether it represented value for taxpayers’ money.”

Report summary The Department of Energy and Climate Change (the Department) implemented the Green Deal in 2013 without adequately testing the design of the scheme with consumers. In practice, householders were not persuaded that energy efficiency measures were worth paying for through the Green Deal and take-up of loans was abysmal.

The Department’s forecast that the Green Deal Finance Company would provide loans worth more than £1.1 billion by the end of 2015 was wildly optimistic—the actual figure was £50 million. £25 million written off by the Department The finance company has incurred large financial losses as a result of the low demand for green deal loans resulting in the Department writing off some £25 million of the amount it loaned to the company.

While the complementary Energy Company Obligation scheme has led to energy efficiency improvements in over 1.4 million homes, the Department does not have the information it needs to measure progress against its objectives. In particular, it cannot tell what impact the schemes have had on reducing fuel poverty.

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INFRASTRUCTURE & TECHNOLOGY

RISK MANAGEMENT IN THE ENERGY SECTOR

The Institute of Risk Management (IRM) asks its members what working in risk is really like and what hints and tips they’d share with people looking to move into the industry. Head of Risk Management & Insurance Daniel Buciu reveals his thoughts on the world of risk management as he knows it, and his first encounter with it.

companies on product and market development as they were branching out to other customers.

Seven years ago I was employed by OMV Petrom (part of OMV Group) as a risk & insurance specialist responsible for downstream risks and insurances (refinery, filling stations, etc.). As I am a curious, competitive and passionate person I read and learned a lot on the job and on my own and while doing that I acknowledged three things: the assurance of having your risks within acceptable limits is a highly valuable commodity especially in high risk industries, the market for this type of professionals is lacking supply and to have success is critical to a solid professional expertise as well as communication skills to convince people to consciously assess and decide how to mitigate their risks.

To fully develop myself for all risk mgmt. sub disciplines required in Oil & Gas I went on and did the Cert CII and Cert IRM programs as well as Master Degree in Financial Risk Mgmt. After finishing my studies, I was promoted twice and now four years later I am the heading the Risk & Insurance Practice for my company and happy to say with great feedback from my internal clients.

How did you get your current job?

My first interaction with risk management took place 12 years ago in 2004 when I started selling retail insurance products as an agent for Allianz Romania in one of their branches – this was my first encounter with the art of persuading clients to take wise decisions with regard to their risks and their future.

I changed for two years to the advertising industry where I continued to develop my skills to convince corporate clients how to read and convince customers then moved back to insurance at Lukoil Group and worked for two years in one of their captive insurance

What is a typical day like as the Head of Risk Management & Insurance?

My typical day begins with coffee and a review of the “TO DO” list and meetings for the day. In this time of year I spend half of my time on face-to-face risk communication (which involves engaging senior executives and heads of other departments, presenting company risk reports to their teams and having conversations with them about their contribution and feedback) as well as progressing or contributing to risk related projects (e.g. developing new methodologies to measure impact of FX risk, improving how we assess reputational consequences of our risks, contributing to

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INFRASTRUCTURE & TECHNOLOGY

development of Business Continuity Plans, etc.). In 80% of the cases I always have lunch with my team and the remaining time I distribute between discussions with my team on their individual initiatives and approvals, e-mails, phone calls and keeping up with the latest news.

What do you enjoy most about your job?

The best part of my job is the constant interaction with people across the company, the overview that you get from knowing the entire company and the possibility that together with top executives to really influence what our company does today to thrive in the future.

What are the main challenges in your line of work?

I am lucky to have a great team and support from our CFO and CEO - this makes the job easier but not easy. Besides oil price which is not helpful these days, our main challenge is to keep the process relevant & valuable at all hierarchical levels throughout the company and last but not least making sure that the process remains practical (e.g. decisions are taken and implemented in line with the risk assessments).

In what way are your IRM qualifications relevant to what you do?

Besides professional recognition, I learned a lot from the Certificate in Risk Management training course and am happy to say that I am using all of the knowledge received in there. One example which received excellent appreciation is taking the LILAC (leadership, involvement, learning, accountability and communication) approach for a sound risk culture, developing a risk culture survey to measure the risk culture, implementing a companywide risk culture development campaign and seeing the results after three years when we re-measured the risk culture with the same survey.

helped?

My role developed significantly after my affiliation and training with the IRM and even if my current role still keeps me motivated and the future of the oil and gas industry remains risky definitely in terms of career ambitions I am looking forward to bigger professional challenges. I am passionate about what I do and I hope my career will give me the possibility to add value at a much larger scale and with international impact in the near future.

What are your top tips for someone who’s at the beginning of their career?

I would say three things: 1. Persuasion and communication are key both for successful Risk Managers as well as for any business professional, make sure you develop this part as well; 2. Always keep the risk management proportionate, relevant and valuable for your beneficiary and; 3. Be honest, passionate and share your success with others.

Company: OMV Petrom, Romania Name: Daniel Buciu, Head of Risk Management & Insurance Web Address: www.omvpetrom.com

No company is perfect but when you are using the instruments, do the efforts and see the improvement is definitely nice.

What would you say to others thinking about joining IRM as a member?

In my opinion, IRM is definitely the best choice in the world when it comes to risk management education.

Risk management it’s all about taking wise decisions.

Harvesting the future for opportunities as a business or an individual requires the best of risk management and this requires having a crystal clear, logical and sound approach to managing risks. This is what I got from the IRM training programs.

How has your role developed and what are your career ambitions? Has being linked to the IRM

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INFRASTRUCTURE & TECHNOLOGY

BRILLIANT LIGHT POWER, INC. ANNOUNCES THE VALIDATION OF THE GENERATION OF OVER A MILLION OF WATTS OF POWER IN THE VOLUME OF A COFFEE CUP FROM THE CONVERSION OF WATER FUEL TO A NEW FORM OF HYDROGEN Using four cross-confirming methodologies, five validators have confirmed over a million watts of plasma power developed by BrLP’s so-called SunCell® at power gains of over 100 times the power to ignite the Hydrino reaction, and at power densities higher than any previously known energy source. Dr. Randy Booker, physics professor and former Physics Department Chairman at University of North Carolina-Ashville said, “The power was measured using two optical power measurements involving three sophisticated spectrometers calibrated against a National Institute of Science and Technology traceable standard and two thermal methods involving a commercial calorimeter and the rate of the rise of the water coolant temperature of the SunCell®.

“All four methodologies cross-confirmed the production of megawatt scale power that was continuous in the case of the SunCell® with spectacular commercial potential. Moreover, the unique and characteristic spectrum from the optical tests of essentially purely high energy light emission over a predicted range confirms the hydrino reaction as the source of the power.”

“Transportation technology has relied on burning something – oil, coal, natural gas, for over a century.

The transition to alternative energy is often considered a niche, futuristic, and even inconsequential solution.

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Brilliant Light Power, Inc. (BrLP) announced on July 11 that it has continuously generated over a million watts of power from a new primary source until the cell vaporised from the intense heat. The power released by the conversion of hydrogen atoms from water molecules into a lower energy form called “Hydrino” or dark matter is manifest as brilliant-light emitting plasma wherein the light is uniquely and extraordinarily essentially all high-energy light in the extreme ultraviolet.

The SunCell® presents the possibilities to make this transition to a new energy era a reality.”

BrLP subsequently held an invitation demonstration event on June 28, 2016 for about 50 guests from industry and academia wherein BrLP presented live demonstrations of the enormous power density and power gain by multiple methods. BrLP also presented an engineered SunCell® prototype having no moving parts that it believes is capable of producing 125 kW of electricity.

BrLP anticipates having field trials in 2017 supported by several current engineering firm and manufacturer partners.

It comprises refractory materials capable of the intense heat wherein the SunCell’s® enormous power density heats a blackbody radiator to incandescent temperatures to produce the effect of thousands of halogen light bulbs, and the light is converted to electricity with socalled concentrator photovoltaic cells that receive the light from the blackbody radiator and operate at incident light intensities of over one thousand times that of sunlight. Details of the SunCell®, the BlackLight Process, the video and slide presentation from the June 28, 2016 demonstrations, background theory, journal publications, and other support materials are available on the BrLP webpage (http://brilliantlightpower.com).

BrLP’s safe, non-polluting power-producing system

INFRASTRUCTURE & TECHNOLOGY

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catalytically converts the hydrogen of the H2O-based solid fuel into a non-polluting product, Hydrino, by allowing the electrons to fall to smaller radii around the nucleus. The energy release is over 200 times that of burning the equivalent amount of hydrogen with oxygen. Due to this extraordinary energy release, H2O may serve as the source of hydrogen fuel to form Hydrinos and oxygen. Moreover, the SunCell® is compact, light-weight and autonomous with a projected capital cost of 1% to 10% that of any other form of power. The anticipated cost is so low that BrLP intends to provide autonomous individual power for essentially all stationary and motive applications untethered to the grid or any fuels infrastructure. Dr. Mills announced, “This is the end of the age of fire, the internal combustion engine, and centralised power and fuels.”

“The commercial potential for SunCell® technology is enormous. The promise of a cheap, clean and unlimited source of electric power is on the verge of commercialisation. SunCell® components are based on well-known technologies from electrical lighting, photovoltaic, semiconductor, refractory and aerospace industries, and use widely available materials.

What is new is Brilliant Light Power’s theoretical and experimental breakthroughs, protected by patents and proprietary know-how. Albert Einstein is looking down, smiling: I told you so, He does not play dice,” said Former World Bank manager Gerhard Pohl.

Dr. Joseph Renick, former Chief Scientist at Applied Research Associates added, “It is understandable why even the best of scientists have difficulty taking seriously that which has been accomplished by Dr. Mills and his team at Brilliant Light Power because of how completely it transforms our understanding of atomic and molecular structure, dispels all of the strangeness associated with quantum theory so cherished by quantum physicists and chemists and then to boot delivers to mankind a new source of essentially unlimited inexpensive clean energy. The novel techniques, materials and processes developed by BrLP in the last few years are making this new source of energy a reality for all of mankind. The rest, however painful it will be for many in the natural sciences, will follow.”

One of the validators, Bucknell Professor Dr. Peter Mark Jansson PE remarked, “An objective review of the progress BrLP has made over the past decade in the development of their proprietary hydrogenbased technology indicates that they have achieved an understanding of the fundamental parameters that must be controlled to create a sustainable and energetic

reaction of their atomic hydrogen fuel and catalysts. They have made landmark progress in creating demonstration devices that prove the concept of their generation technology with promise of becoming continuously operating prototypes in the near future.

The creation of these consistently replicable experiments where input power is multiplied by 65 to 150 times is a remarkable achievement. The input power for these respective experiments was 8.02 kW and 10.45 kW with corresponding output power peaks reaching as high as 521 kW and 1.56 MW. Although these energy bursts were on the order of 1 to 3 minutes in duration I was able to observe a more continuous, sustainable reaction experiment that lasted over 7 minutes, other validators were able to observe operating SunCells® for over 30 minutes in duration.” Dr. K.V. Ramanujachary, Rowan University Meritorious Professor of Chemistry and Material Science, added that from his independent tests he finds, “the developments truly impressive and extremely important. I believe that the technology is amenable for making large-scale devices as easily as a portable one.

This is what makes it very attractive.”

Regarding the versatility of power and unsurpassed logistical advantages, David Bennett, former Proterra CEO and former President of Eaton Vehicle Group, Asia Pacific said, “Transportation technology has relied on burning something – oil, coal, natural gas, for over a century. The transition to alternative energy is often considered a niche, futuristic, and even inconsequential solution. The SunCell® presents the possibilities to make this transition to a new energy era a reality.” He further emphasised, “The SunCell® is a relatively simple system that catalytically converts water-based fuel directly into brilliant light that is converted to electricity using existing photovoltaic technology. Initial testing indicates megawatt power potential, which would radically transform energy technology. The SunCell® presents a solution to the clean energy challenge of our lifetime.”

Glossary: BlackLight Process: A novel chemical process invented by Dr. Mills causing the latent energy stored in the hydrogen atom to be released as a new primary energy source.

Hydrino: Hydrinos are a new form of hydrogen theoretically predicted by Dr. Mills and produced and characterised

by BrLP. Hydrinos are produced during the BlackLight Process as energy is released from the hydrogen atom as the electron transitions to a lower-energy state resulting in a smaller radius hydrogen atom. The identity of the dark matter of the universe as Hydrinos is supported by BlackLight’s spectroscopic and analytical results as well as astrophysical observations.

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INFRASTRUCTURE & TECHNOLOGY

SunCellÂŽ: The SunCellÂŽ comprises six fundamental low-maintenance commercially available systems, some having no moving parts and capable of operating for a decade or more: (i) a start-up inductively coupled heater to first melt silver; (ii) a gas injector to inject hydrogen derived from water and an injection system comprising an electromagnetic pump to inject molten silver and a very stable solid source of oxygen that reacts with the hydrogen to form the hydrogen to Hydrino catalyst; (iii) an ignition system to produce a low-voltage, high current flow across a pair of electrodes into which the molten metal and fuel are injected to form a brilliant lightemitting plasma; (iv) a blackbody radiator heated to incandescent temperature by the plasma; (v) a light to electricity converter comprising so-called concentrator photovoltaic cells that receive light

from the blackbody radiator and operate at light intensity of over one thousand Suns; and (vi) a fuel recovery and a thermal management system that causes the molten metal to return to the injection system following ignition.

Photovoltaic or Solar Cell: Each cell comprises a flat panel of a semiconductor material that exhibits the photovoltaic effect, a method of generating electrical power by converting radiation such as solar radiation into direct current electricity. Light absorption in the semiconductor material creates energised charge carriers of opposite polarity that are collected at corresponding negative and positive electrode contacts on opposite sides of the flat panel to create a voltage that can deliver power to an external load.

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INFRASTRUCTURE & TECHNOLOGY

CONVERGENCE OF ENVIRONMENTAL AND SUSTAINABLE TECHNOLOGIES ADDRESS DETERIORATING ECOLOGICAL CONDITIONS

Awareness of beneficial properties of sustainable technology adoption will ignite growth opportunities across industries, says Frost & Sullivan’s TechVision Global Research Team.

Across the globe there is a struggle with rapidly changing climatic conditions, limited resources and a declining quality of environment. With these current trends comes the realisation that interconnected solutions must be rapidly adopted to avoid declining environmental conditions. However, resistance to these solutions still remain, namely in the form of investments. In an effort to avoid extended challenges, environment and sustainability technologies must be embraced to stimulate awareness, thus, boosting holistic growth opportunities.

Currently, North America leads in the development and adoption of these technologies followed by Europe.

Meanwhile, Asia Pacific is expected to be a major market and will see the maximum growth in adoption of environment and sustainable technologies.

New TechVision analysis from Frost & Sullivan, Top Technologies in Environment and Sustainability – 2016 (http://frost.com/d6f6), finds the latest innovations in agricultural technologies and waste and wastewater technologies can potentially address the food-waterenergy nexus challenges. These technologies include: food waste upcycling, membrane biofilm wastewater treatment, micro irrigation, off-grid desalination, particulate air pollution control, point source CO2 reduction, precision agriculture, waste-to-energy, wastewater membrane filtration and wastewater nutrient recovery.

“Creating global awareness for the implications of deteriorating environmental conditions and long term benefits of technology adoption will act as a catalyst for these technologies,” said Frost & Sullivan Research Analyst Lekshmy Ravi. “Stringent regulations, subsidies and incentives will also play a major role in improving adoption. Globally, goals and targets fixed by world organisations and nations will stimulate growth.”

“Overlapping solutions address interrelated challenges and increase the probability of maintaining environmental sustainability,” observed Frost & Sullivan Senior Industry Analyst Jennifer Tan. “Embracing the interconnectedness of these environmental technologies holds the potential to not only improve global struggles, but also induce the spread of sustainable solutions across industries and regions.”

Combatting the uptake of these technologies is the additional capital investment required for adoption, along with the lack of awareness of their significance.

Furthermore, ambiguous and lax regulations have also resulted in a lack of interest in sustainable technologies.

Survive and Thrive in an Unpredictable Future! Schedule a Growth Strategy Dialog to discuss your strategic growth development and discover growth opportunities impacting your business, here: http://frost.ly/pr Top Technologies in Environment and Sustainability – 2016 is part of TechVision’s flagship research series, the Emerging Technologies Program (ETP) (http://ww2. frost.com/research/techvision/emerging-technologiesprogram/). The ETP identifies and provides intelligence on the hottest, most innovative and lucrative technologies whose impact are felt across industries.

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INFRASTRUCTURE & TECHNOLOGY

STRONG OPPORTUNITIES AWAIT MANUFACTURERS OFFERING RAPID ACTING, ENERGY EFFICIENT, LOW COST AIR PURIFIERS

Increasingly polluted air is boosting the adoption and development of indoor air purifiers, finds Frost & Sullivan. As air pollution becomes a major concern across the globe, technologies that can filter multiple pollutants and are intelligent as well as cost effective will gain traction in all end-user segments.

Rising income levels, heightened awareness of the importance of indoor air quality, and the commercialisation of more low-cost indoor air purifiers will further boost the development of novel air purifiers.

New analysis from Frost & Sullivan, Technologies Enabling Indoor Air Purification (http://www.frost.com/sublib/ display-report.do?id=D6E0-01-00-00-00&src=PR), finds that in addition to outdoor air pollution, concerns regarding outbreaks of airborne diseases are driving the adoption of air purification technologies. The three major air purification technologies in the market are advanced air filtration, advanced photocatalytic oxidation and combined technologies. Of these, air filtration continues to be the most popular.

“Nevertheless, stringent quality controls and low-cost, energy-efficient technologies that can sterilise air quickly and effectively will enjoy huge success,” noted TechVision Senior Industry Analyst Jennifer Tan. “In the near future, photocatalytic technologies such as filterless Airocide will find enthusiastic acceptance. Autonomous air purifiers too will be increasingly deployed, chiefly in offices, museums and large indoor spaces.”

Air pollution is a critical issue in India and China, with the latter reporting several deaths related to this hazard.

Similarly, in Indonesia, agricultural fires frequently cause a haze that affects many parts of Southeast Asia such as Singapore, Malaysia and south of Thailand. Expectedly, there is a surge in the use of household air purifiers as citizens show urgency in protecting themselves against the deteriorating air quality.

“To tap the expanding market potential, technology developers are striving to enhance the efficiency of air purifiers while keeping costs low through the use of inexpensive materials,” said TechVision Research Analyst Najhan Rahim. “Keeping costs competitive will be crucial since high installation and maintenance costs may cause indoor air purifiers to be tagged as luxury items.”

Technology development is advancing at a rapid pace, with companies rolling out mixed technologies and artificial intelligence air purifiers. However, the commercial availability of air purifiers that do not comply with regulations, and produce hazardous byproducts such as ozone, is restraining uptake. End users also tend to expect instant improvements in health once they install air purifiers, and are impatient with their slow effectiveness in alleviating allergies and asthma.

Technologies Enabling Indoor Air Purification, part of the TechVision (Clean & Green Environment) subscription, provides an overview of the indoor air purification industry, examines technology innovations and analyses opportunities in key application markets. The study includes indoor, built or covered environments, such as residential homes, offices and commercial buildings, hospitals, automobiles and industrial plants.

Frost & Sullivan’s global TechVision practice is focused on innovation, disruption and convergence and provides a variety of technology based alerts, newsletters and research services as well as growth consulting services.

Its premier offering, the TechVision program, identifies and evaluates the most valuable emerging and disruptive technologies enabling products with near-term potential.

A unique feature of the TechVision program is an annual selection of 50 technologies that can generate convergence scenarios, possibly disrupt the innovation landscape, and drive transformational growth. View a summary of our TechVision program by clicking on the following link: http://ifrost.frost.com/TechVision_Demo For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/ APAC_PR_CLow_D6E0_23Jun16

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OIL & GAS

COMMISSION’S PROPOSAL ON BINDING GREENHOUSE GAS EMISSION REDUCTIONS FOR MEMBER STATES (2021-2030)

The European Commission on 20th July published a fact sheet on their proposal on binding greenhouse gas emission reductions for Member States (2021-2030) which is detailed below in a question and answer format.

1. Clear rules for the modernisation of a low-carbon economy in Europe The collective efforts of all Member States will be required to modernise the economy and ensure a successful transition to a low-carbon economy. This is a shift that will provide jobs, growth and investment opportunities for Europe while mitigating dangerous climate change. Such a transition requires changes in business and investment behaviour and incentives across the entire policy spectrum.

The modernisation of the economy will stimulate investment and innovation in new technologies and ensure the EU can remain a world leader in renewable energy and be competitive in markets for goods and services such as low-emission vehicles and energy efficiency.

In October 2014, EU Heads of State or Government set a binding economy-wide domestic emissions reduction target of at least 40% by 2030, compared to 1990. All Member States and all sectors should contribute to achieving these emission reductions. To do so in a costeffective manner, the industrial and power sectors covered by the EU emissions trading system (ETS) should reduce emissions by 43% by 2030 compared to 2005. Other sectors of the economy (the so-called non-ETS sectors) should reduce emissions by 30% by 2030 compared to 2005.

Following up on the agreement reached by Heads of State or Government of the European Union in October 2014 and later confirmed in March 2016, the proposal, the “Effort Sharing Regulation”, sets binding annual greenhouse gas emission targets for Member States for the period 2021– 2030 for the sectors of the economy not regulated under the EU Emissions Trading System (EU ETS) [1]. These sectors include buildings, agriculture, waste management, and transport accounting for almost 60% of total EU emissions in 2014. Setting the national emissions reduction targets is based on fairness, solidarity, cost-effectiveness and environmental integrity.

Together with July’s 2015 proposal for the revision of the EU ETS and the proposal on how to include the land use sector in the 2030 climate and energy framework, this will ensure the achievement of the commitments by the European Union and its Member States under the Paris Agreement on climate change.

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2. Fair and cost-effective distribution of the 30% emission reduction target between all EU Member States This package of measures presented by the Commission helps Europe to prepare for the future and to stay competitive. It translates the commitments taken

by Member States in October 2014 and is primarily addressed to Member States, since they will be in the forefront of deciding how to implement measures to meet the agreed greenhouse gas emission target for 2030.

All Member States will have national emission targets for 2030 expressed as a percentage reduction from 2005 emission levels as well as access to new flexibilities to achieve those targets cost effectively. Collectively, these national targets give an overall EU reduction of 30% in the sectors covered by the proposal. The 2030 targets range from 0% to -40% compared to 2005 levels. The table below includes the target and the level of access to these new flexibilities for each Member State:

OIL & GAS

LU SE

DK FI

DE FR

UK NL AT BE IT IE

ES

CY

MT PT EL SI

CZ EE

SK LT

PL

2030 target Maximum annual flexibility compared to (as a % of 2005 emissions) 2005 One-off flexibility from Flexibility from land use Emissions Trading sector to Effort Sharing System to Effort Sharing Regulation* Regulation -40%

4%

0.2%

-39%

2%

4.0%

-40% -39% -38%

2%

1.1%

2%

1.3% 0.5%

-37% -37%

1.5%

-36%

2%

-35%

2%

-36% -33% -30% -26% -24% -19% -17%

0.4% 1.1%

2%

0.4% 0.5% 0.3%

4%

5.6% 1.3% 1.3%

2%

0.3% 1.0%

-16%

1.1%

-15%

1.1%

-14%

0.4%

-13%

1.7%

-12%

0.5%

-9%

5.0%

-7%

1.2%

HR

-7%

0.5%

HU

-7%

0.5%

LV

-6%

3.8%

BG

0%

1.5%

RO

-2%

1.7%

*Estimate, limit is expressed in absolute million tonnes over 10 years.

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The proposal continues to recognise different capacities of Member States to take action by differentiating targets according to GDP per capita across Member States. This ensures fairness because higher income Member States will take on more ambitious targets than lower income Member States.

EU leaders recognised that an approach for higher income Member States based solely on relative GDP/capita would mean that some would have relatively high costs for reaching their targets. To address this, a group of Member States with a GDP per capita above Union average should be relatively adjusted to reflect cost-effectiveness in a fair and balanced manner.

The proposal creates a flexible system in which Member States can reduce emissions jointly, across a number of sectors and over time, reflecting also the different structure of Member States' economies. It not only sets national targets, but also provides a number of flexibilities to allow for a fair and cost-efficient achievement of the targets. In particular, two new flexibilities are introduced, as described below, that will allow Member States to reach their targets cost efficiently.

3. New one-off flexibility to access allowances from the EU Emissions Trading System The new flexibility allows eligible Member States to achieve their national targets by covering some emissions in the non-Emission Trading System sectors with EU Emission Trading System allowances which would normally have been auctioned, generating revenue for that Member State.

The eligible Member States and the associated maximum level of access are set out in the proposal (expressed as a % of 2005 base year emissions). EU-wide, this cannot be more than 100 million tonnes CO2 over the period 20212030. In order to preserve predictability in the ETS, eligible Member States have to notify the Commission before 2020 of the amount of this flexibility they will use over the period.

Predictability and environmental integrity are maintained because the transfer is strictly limited in volume, and decided beforehand.

4. New flexibility to access credits from the land use sector In order to stimulate additional action in the land use sector, this proposal permits up to 280 million tonnes CO2 to be credited from certain land categories [2] to be used for national targets over the entire period from 2021-2030.

The number of credits which can be used by each Member State is included in the proposal. All Member States have access to these credits for compliance while access is higher for Member States with a larger share of emissions from agriculture. In line with EU leaders' guidance, this recognises that there is a lower mitigation potential for emissions from the agriculture sector.

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5. Maintain existing flexibilities: banking, borrowing, buying and selling In addition, the proposal provides several flexibilities to address cost-effectiveness. In years where emissions are lower than their annual emission allocations (AEAs), Member States can bank any surplus AEAs and use them in later years when limits are lower. In years where emissions are higher than the annual limit, they can borrow AEAs from the following year. This gives Member States the flexibility to deal with annual fluctuations in emissions due to weather or economic conditions.

Member States can also buy and sell allocations from and to other Member States. This is an important vehicle to ensure cost-effectiveness as it allows Member States to access emissions reductions where they are the cheapest and the revenue can be used to invest in modernisation.

6. Emissions Trajectory and Starting Point The national targets established in the proposal are not just for the year 2030. In fact, the proposal sets a limit for each year in the 10-year period up to 2030. The limit for each year is set according to a decreasing linear trajectory. This ensures year on year reductions and adds integrity to the 2030 target because it is the culmination of reductions over 10 years rather than a stand-alone point. The starting point for the linear target trajectory is set from 2020 as the average emissions in 2016-2018 because this will be the latest data available in 2020. Lower income Member States that were still allowed to increase their emissions until 2020 will have a higher starting point adding the agreed emissions increases between 2018 and 2020.

7. Clear rules for reporting and following up progress The proposal maintains annual reporting and compliance obligations for the period 2021-2030.

The Commission will evaluate progress towards achieving the targets annually and report on this. If any Member State is not on track, they are required to make an appropriate action plan. In order to reduce administrative burden and to allow for the potential contribution from land use, a comprehensive review of Member States' GHG emissions reports and the more formal compliance check will be organised every 5 years, rather than annually. The first such review will be in 2027 for the years 2021-2025, followed in 2032 for the years 2026-2030. This closely aligns the proposal with the 5-year review cycle set out in the Paris Agreement and is in line with the Commission commitment to Better Regulation.

Where a Member State still does not meet its annual obligation in any year, taking into account the use of flexibilities, the shortfall is multiplied by a factor of 1.08 and added to the following year's obligation.

8. Tools for Member States to meet their national targets In sectors such as buildings and road transport, many of the important decisions will be taken at Member State

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level. Policies and measures to lower emissions potentially include traffic management, shifts away from carbonbased transport, taxation regimes, the promotion of public transport, biofuels, urban and transport planning, improved energy performance standards for buildings, more efficient and less carbon intensive heating systems, and renewable energy for heating. Measures to reduce and recycle waste streams and to reduce landfilling also reduce greenhouse gas emissions (in particular methane emissions). The agriculture sector can also contribute by improving the efficiency of production in general. A number of specific mitigation actions also exist such as the production of biogas from manure.

A number of important EU-wide measures will also help Member States to reduce emissions and thus meet their national targets. Complementary legislative proposals are envisaged for later in 2016 to help achieve the targets agreed by the European Council of at least 27% for the share of renewable energy by 2030 and the same target for improving energy (This will be reviewed by 2020, having in mind an EU level of 30%).

Important policies in this context are the Energy Efficiency Directive and the Energy Performance of Buildings Directive.

Furthermore, the F-gas regulation will ensure that climatewarming gases (used for instance in fridges and cooling systems) will be replaced by climate-friendly alternatives.

Transport is the largest sector in terms of emissions in the non-ETS sectors, and the only one that has seen emission

increases since 1990. Since 2007, emissions have started to decrease. To continue this trend, further policies will need to be put in place. This European Strategy for Low-Emission Mobility which is presented together with this proposal addresses further action to reduce emissions in transport.

EU policies benefit from the single market to stimulate innovation and deliver more products and solutions more cost efficiently.

9. The EU on track to meet its 2020 target The EU is expected to over-achieve its -10% target in the non-ETS sectors as set out in the current Effort Sharing Decision [3]. The latest emissions data for 2014 indicates that emissions went down by 13% in these sectors compared to 2005. According to EU projections, in 2020, emissions are expected to be reduced by 16% in these sectors compared to 2005. For almost all Member States, emissions in 2020 are expected to be below their national limits for that year.

[1] The proposed Effort Sharing Regulation is the followup to the Effort Sharing Decision (Decision No. 406/2009/ EC) which established national emission targets for Member States in the non-ETS sectors between 2013 and 2020.

[2] The flexibility applies only to net credits generated domestically by afforested land, managed grassland and managed cropland.

[3] Decision No. 406/2009/EC: http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=uriserv:OJ.L_.2009.140.01.0136.01.ENG

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PETROFAC’S WALTER THAIN TO LEAD OFFSHORE OIL AND GAS INDUSTRY EFFICIENCY DRIVE

Walter Thain, managing director of Petrofac’s Engineering & Production Services (EPS) West business, is to lead the UK offshore oil and gas industry’s efficiency drive as chairman of the Oil & Gas UK Efficiency Taskforce (ETF), it was announced on Thursday, 7 July.

Launched last year to provide the catalyst for greater cooperation to improve efficiency across the sector, the ETF aim is to share good practice and spearhead cross sector projects that will benefit the industry as a whole.

Walter leads the Engineering & Production Services (EPS) West business – which provides life of asset services from conception to decommissioning – having spent almost fifteen years with Petrofac in a variety of roles. Walter is a chartered engineer with more than 25 years’ industry experience. Prior to joining Petrofac, he held senior engineering and leadership positions with McDermott Engineering delivering both brownfield and greenfield engineering projects.

Walter Thain will take over the leadership of this important group whose work is seen as critical to boosting the sector’s competitiveness and helping attract investment back into the UK Continental Shelf. He succeeds John Pearson of Amec Foster Wheeler, who has stepped down from the role, having been appointed group president, Americas at the end of May this year.

For more information, visit www.oilandgasuk.co.uk

Stephen Marcos Jones, Oil & Gas UK’s director of Business Excellence, commented: “We are delighted Walter will be leading this pan-industry group of experts – I feel certain he’ll ably guide this industry to cooperate to become more competitive in the global marketplace. I’d like to take this opportunity to add sincere thanks, on behalf of the whole industry, to John Pearson, for his significant contribution in launching the ETF, providing the great foundations we can build on in our second year.”

Walter Thain commented: “I look forward to meeting the team and getting on with the sizeable tasks ahead.

It’s more vital than ever that our industry pulls together and makes a collective commitment to working more effectively, efficiently and co-operatively in order to make a difference.”

“Having joined the Board of Oil & Gas UK this spring, I’m well aware of the progress we are making towards becoming more efficient – from taking a fresh look at inventory management through companies sharing details of some 200,000 spare parts online; to putting in place the use of standard rather than bespoke specifications in subsea design and construction and potentially saving 30 per cent on costs in the process.”

“Undoubtedly, a change in culture is the key to finding a better way to do business in the UK Continental Shelf and I’m looking forward to playing a significant role in securing a sustainable future for this basin.”

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OIL & GAS

A.H.T SYNGAS TECHNOLOGY N.V: SECOND AGREEMENT FOR JAPANESE ROLL-OUT

A.H.T. Syngas Technology N.V. signed a Memorandum of Understanding (MoU) in mid-July to cooperate with Showa Shell Sekiyu K.K., a Japanese Royal Dutch Shell group company, on the study of the development of the Japanese market for advanced gasification technology projects.

CEO of AHT Syngas N.V. The MoU was signed 06. July 2016 in Tokyo.

During this memorable Friday, another A.H.T.'s gas and power generation plant experienced its official grand opening in Kesennuma, a town located at the North Pacific shoreline in the Northern part of Japan's main island, Honshu. With a capacity of 800 kWel, the plant utilises wood remains from the surrounding forestry and is able to support 1,500 households with electricity and two hotels with heat. The plant already proved its performance of so far 8,000 hours in operation.

“We are enthusiastic about the opportunities for our company in this region. Japan is an ideal market for a larger scale rollout of our technology. We are taking advantage of the high cost efficiency Japanese clients can generate with partners out of the Eurozone.�

Our operating partner in the MoU study is KCE - Kesennuma Regional Energy Development Co. Ltd. A.H.T. Syngas Technology N.V. is a turnkey contractor for KCE, which owns and operates a AHT gasification plant successfully in the city of Kesennuma on the northern shoreline of the main island Honshu.

AHT, as the German partner in the MoU study, is intended to deliver modern gasification plants based on the proven twin fire technology within a medium size class ranging from 200 Kilowatt to 10 Megawatt. Showa Shell under this MoU is studying how the market demand for electric and thermal energy can be viably served, based on renewable feedstock which is available decentralised and locally, avoiding central nuclear and fossil sources. The results of the MOU study by AHT, Showa Shell Sekiyu, and KCE are expected in August 2016.

"We are enthusiastic about the opportunities for our company in this region. Japan is an ideal market for a larger scale rollout of our technology. We are taking advantage of the high cost efficiency Japanese clients can generate with partners out of the Eurozone." Explains Gero Ferges,

After the Tsunami hit Japans Pacific shoreline in 2011, Mr Takahashi, owner and operator of the plant, followed his goal towards a decentralised and independent sustainable power supply for his home town - which now became reality. As member of the local reconstruction committee, he initiated Japan's only functioning biomass-to-energy plant of that size based on the efficient and proven A.H.T. twin-fire technology. Not only the environmentally friendly power generation, but also the diversification of the local economy contributes to the success and the opportunities deriving from sustainable power and heat generation: Kesennuma's economy bases largely on fishery that declined during the 2011 event and now experiences a growth by the activities of a sustainable forest management and logistics to supply the plant with the required input material.

The event was attended by the mayor of Kesennuma, alongside with members of the prefecture's local government and major companies active in the fields of sustainable power generation.

"This gas, heat and power generating plant serves as a role model for the region - not only demonstrating A.H.T.'s competence in clean gas and power generation solutions but also shows the economic and social implications, decentralised power generation bears", stated Mr Gero Ferges, CEO of A.H.T. Syngas N.V. and Mr Takahashi.

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OIL & GAS

US GIANT SCHLUMBERGER LOSES $2.2BN IN Q2 The world's biggest oilfield services company Schlumberger reported a Q2 2016 net loss of $2.16bn July 21, down from a profit of $501mn in Q1 2016, despite the rising oil price; and down from a profit of $1.124bn in Q2 2015.

CEO Pal Kibsgard said: “In the second quarter market conditions worsened further in most parts of our global operations, but in spite of the continuing headwinds we now appear to have reached the bottom of the cycle. As we continued to navigate this challenging environment, we again delivered robust pretax operating income, operating margin, and free cash flow." Revenue over the quarter rose 10% sequentially, reflecting a full quarter of activity from the Cameron businesses that contributed $1.5bn. The drilling segment saw the biggest fall in margins over the period.

The acquisition of Cameron, which completed April 1, "will result in the industry’s first complete drilling and production systems, which will be enabled by Schlumberger expertise in instrumentation, data processing, control software, and system integration," it said.

Pre-tax revenue fell 12%, with the major fall in North America thanks in part to a 25% drop in the US land rig count, while international revenue fell 9% owing to weaker activity, continued pricing pressure, and a large-scale cutback in Venezuela. "However, our wide geographical footprint and broad technology portfolio continued to offer unique advantages that helped to mitigate these effects," he said.

With a global reach, its products have been designed to deal with most adverse geology and geography that the pursuit of oil and gas production can throw at it, and its quarterly results are littered with trademarked products that further reduce manpower and save time, bringing more oil and gas to the surface for the same cost. For example, its Rhino XS reamer "has a single-piece body that allows for higher tensile and torque-load capacity, while Well Commander tools enable operators to boost circulation to remove cuttings at strategic points in the drillstring. As a result, the customer" – in this case BP, offshore Azerbaijan – "saved 48 hours of rig time on an offshore platform."

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OIL & GAS

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RENEWABLE ENERGY

ALTERNATE ENERGY SOURCES MARKET OFFERS GROWTH OPPORTUNITIES FOR INDUSTRIAL VALVES AND ACTUATORS

In response to the drastic drop in oil prices, oil companies all over the world have been deferring exploration activities. This move has sent ripples through the valves and actuators market. Market participants are looking to compensate for the shortfall by tapping the vast opportunities in unconventional energy sources, namely shale gas and sub-sea and oil sands, in North America, Latin America and Western Africa. Alloy steel valves will especially be popular in sub-sea exploration, super-critical and nuclear power plants.

New analysis from Frost & Sullivan, Strategic Analysis of the Global Industrial Valves and Actuators Market (http:// frost.ly/l0), finds that the market earned revenues of $31.84 billion in 2015 and estimates this to reach $35.88 billion in 2020.

“Applications, such as combined cycle power plants and sub-sea exploration, require valves that can withstand extreme temperature and pressure,” said Frost & Sullivan Industrial Automation and Process Control Senior Research Analyst Ticaram Ramakrishnan. “Manufacturers will gain a significant competitive advantage by incorporating innovative designs and materials in valves for challenging environments.”

In addition to alternate power markets, rising urbanisation is causing a surge in demand from power generation and water and wastewater treatment markets, particularly in China and India. Simultaneously, the swelling tide of environment consciousness will open up green energy markets such as nuclear power plants. Due to the concerns over emissions, manufacturers can expect enthusiastic adoption of emission-free valves.

Another prominent trend that is altering the dynamics of the valves and actuators market is automation. There will be a greater need for valve diagnostics, causing a shift in market focus from flow control devices to actuation and diagnostic ones. Furthermore, it will create a market for remote monitoring and preventive maintenance in the next five years. Agile technologies that continuously monitor equipment and provide feedback will enjoy considerable uptake.

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“Partnerships and acquisitions play a crucial role for manufacturers in the adoption of new technologies and expansion of product lines,” noted Ramakrishnan. “Vendors offering a comprehensive package comprising flow control solutions, automation technologies as well as diagnostic capabilities will have a distinct edge in the market.”

For complimentary access to more information on this research, please visit: http://frost.ly/l6

RENEWABLE ENERGY

IKEA TO INCREASE INVESTMENT IN FUEL CELLS WITH PLANS FOR SYSTEMS TO GENERATE RENEWABLE ENERGY AT FOUR MORE CALIFORNIA STORES

IKEA, the world’s leading home furnishings retailer, in mid-July announced it is furthering its renewable commitment with plans for biogas-powered fuel cell systems at four more of its California stores. A year ago, IKEA completed installation of such a project at IKEA Emeryville, one of the Swedish company’s two San Francisco-area stores.

contribute to our goal of generating renewable energy equal to the amount of power we consume worldwide.”

Ken Wolter Shutterstock.com

For the design, development and installation of these planned fuel cell systems, IKEA contracted with Sunnyvale-based Bloom Energy a provider of breakthrough solid oxide fuel cell technology generating clean, highly-efficient on-site power.

Drawing from its Swedish heritage and respect of nature, IKEA strives to minimise its operations’ carbon emissions because reducing its environmental impact makes good business sense. IKEA evaluates locations for conservation opportunities, integrates innovative materials into product design, works to maintain sustainable resources, and flatpacks goods for efficient distribution.

IKEA now plans to expand its fuel cell portfolio to 1.3 MW with a system at its other San Francisco-area store (in East Palo Alto), as well as three stores in Southern California (Costa Mesa, Covina and San Diego). Pending permits, the fuel cells will be installed, commissioned and operational by this Fall, 2016, complementing solar arrays already atop each of the four stores.

“Fuel cells represent another way we can contribute to our goal of generating renewable energy equal to the amount of power we consume worldwide. Based on the success of the system installed last year in Emeryville, we are excited about further increasing our renewable portfolio with four more fuel cell projects,” explained IKEA U.S. president Lars Petersson. “Fuel cells represent another way we can

U.S. sustainable efforts include: recycling waste material; incorporating key measures into buildings with energyefficient HVAC and lighting systems, recycled construction materials, warehouse skylights, and water-conserving restrooms; and operationally, no plastic bags in the checkout process, and selling only LED bulbs/fixtures. IKEA U.S. has installed electric vehicle charging stations at 14 locations and solar arrays at 90% of its locations, integrated two geothermal projects at two store locations and owns two wind farms.

Since its 1943 founding in Sweden, IKEA has offered home furnishings of good design and function at affordable prices.

There are currently more than 380 IKEA stores in 48 countries, including 42 in the U.S. IKEA has been ranked among “Best Companies to Work for” and, as further investment in its coworkers, has raised its own minimum wage twice in two years.

IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment.

For more information, see IKEA-USA.com

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RENEWABLE ENERGY

SOLAR PHOTOVOLTAIC ARRIVES AS A MAINSTREAM TECHNOLOGY: A LOOK AT THE GAME CHANGERS

Energy system flexibility, supportive policies, and smart initiatives create irreversible market momentum, finds Frost & Sullivan’s Energy Team. Solar power is finally maturing as a key energy source on the global stage.

In addition to green targets, energy independence, and distributed energy, a crucial market accelerator has been the defining of the structure of feed-in tariff (FiT) for solar photovoltaic (PV)generated power.

Along with regulatory dynamics and incentives, this has lowered the levelised cost of electricity (LCOE) of solar power. With higher economies of scale, the cost of solar power systems for both residential and utility-scale PV will reach grid parity by 2020 and increase uptake of decentralised solar energy. As a result, stakeholders from raw material suppliers, solar cell manufacturers, solar module manufacturers, and balance of system equipment suppliers to system integrators and installers are positioned for robust growth.

over the next 5 years. China and Japan will lead with compelling FiT rates and capacity based rebate programs.

New analysis from Frost & Sullivan, Global Solar Power Market—2016 Update (http://www.frost.com/sublib/ display-report.do?id=MBA6-01-00-00-00&src=PR), finds that market revenues stood at $113.75 billion in 2015 and will grow at a compound annual growth rate (CAGR) of 9.5% to reach $179.13 billion in 2020.

Installed capacity with grow from 50,780 MW to 76,600 MW at a CAGR of 8.6% for the same period.

“Pro-solar incentives and the recently made pledges at the COP 21 summit will ensure that the market for solar PV continues to grow exponentially over the next 5 years.” Said Frost & Sullivan Energy & Environment Research Analyst Pritil Gunjan. “Grid integration of renewables and investment in energy storage initiatives are other market enablers.”

Geographically, Asia will see aggressive expansion of solar PV fuelled by economic growth, urbanisation and greater electrification: •

Asia’s market share will rise to 64.1% by 2020 with China, India and Japan together accounting for more than 80% of all solar installations planned

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•

North America will witness a robust growth with the extension of investment tax credit eligibility for solar generators until 2019. By 2020, the region will have about 20 million residential prosumers. Fiscal incentives, technological advancements, and new solar leasing models will be strong drivers.

•

Europe, however, will suffer a setback due to withdrawal of subsidies and incentives. Huge overcapacity, coupled with price decline of solar modules, will see suppliers struggling to make profits.

•

Investments in grid infrastructure, especially in remote off grid locations, will energise demand in the emerging markets of Latin America and Africa.

RENEWABLE ENERGY

“Extreme weather variations, declining energy reserves, and increase of distributed generation technologies will compel utilities to seek newer models supporting energy efficiency and energy management initiatives,” noted Gunjan. “The solar PV supply chain participants are expected to develop new technologies that will lower costs and integrate PVs with flexible infrastructure grids.

Innovative business models to integrate solar power will also open opportunities in smart metering, demand response and net metering.”

Distributed Energy Outlook, Global Energy Storage Industry Outlook 2016, 2016 Global Outlook of the Critical Power Market, Utilities as a Client, Future of the Smart Grid Industry, 2016 Global Outlook of the Energy & Environment Industry, Annual Global Power Generation Forecasts 2016, Global Demand Response Trends, Global Smart Electricity Meter Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Global Solar Power Market—2016 Update is part of the Energy & Power Growth Partnership Service program.

Frost & Sullivan’s related studies include: 2016 Global

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/ EU_PR_AZanchi_MBA6-14_19Jul16

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RENEWABLE ENERGY

THE FUTURE OF SOLAR POWER – WHAT THIS MAY MEAN FOR SMALL BUSINESSES

Phil Foster, Managing Director of Love Energy Savings shares his thoughts on the future of solar power and what this may mean for small businesses. Whilst less than 2% of the world’s electricity is currently generated through solar photovoltaic technology, a recent report [1] estimated that this figure could increase to as much as 13% by the year 2030.

What about solar panels for small businesses?

Solar panels aren’t just for homeowners; a growing number of companies are now starting to cater to businesses of all shapes and sizes who are looking to become a little greener. Switching to solar power can help to lower your bills and your carbon footprint.

bottom line impact, investing in new energy solutions can also unlock new growth and improve productivity and overall competitiveness.”

In the past we have explored how businesses can invest in being green, and it’s never too late to start thinking about reducing your carbon footprint! Investing in solar panels for your business is the perfect place to start. Here are a few reasons why you should get on board…

Cut your business expenses The first and biggest advantage of installing solar panels is that your business expenses will be cut.

Although you will have to pay for the initial investment, panels can pay for themselves in just a few years.

Thanks to government initiatives such as the feed-in tariffs schemes, you can even start to earn money back from the electricity you generate, without having to pay for power from the National Grid. To learn more about the current feed-in tariff rates, and how to apply, Ofgem is the go-to source.

Phil Gilbert, Head of Business Solutions at E.ON, told us: “Energy costs can have a significant impact on a business’ bottom line, and generating your own power can put control firmly into your own hands. Cutting down waste, using smart technology to manage buildings and possibly generating your own power are all options to consider.

“Investing in energy efficiency or in new generation technologies such as solar make sound investments, often paying back in only a few years. Across Europe we are seeing customers actually profiting from improving their energy efficiency. As well as the

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Boost your reputation and earn the public’s trust With climate change and the environment grabbing the headlines so often, people are naturally becoming more green-focused and are more conscious about the companies they choose to work with. Adding solar panels to your business can show people that you are committed to helping the environment, and is certainly something that is worth shouting about!

Annabelle Bean from Romag, says that the benefits of solar energy to SMEs can really go far beyond saving money: “Nothing will position your company as an environmentally-conscious brand more than investing in renewable energy for your business. Not only will you be able to have the peace of mind that you are using green energy, but the fact that you are doing so provides a great PR opportunity.

“Being a sustainable business counts for a lot in the current marketplace, where the spotlight is well and truly on companies who do not prove their environmental credentials. When your customers see that you are setting yourself apart from the crowd and investing in a cleaner future, you will soon build up increased brand loyalty and trust.”

Improve your carbon footprint By cutting your dependence on electricity generated from burning gas, coal and oil, and instead turning to renewable forms of energy, you will be helping to drastically reduce your business’ carbon footprint.

Phil Foster, Managing Director of Love Energy Savings, commented: “There are so many small things that businesses can do to cut their carbon footprint, but

RENEWABLE ENERGY

solar panels are a huge step forward towards our goal of slashing emissions. Here at Love Energy Savings, we want to see the technology developing further and becoming more readily available both to domestic and business customers.

“Even if the installation of solar panels is a little outside the budget of some SMEs, we always advocate using greener sources of energy. We work with a number of different independent suppliers, some of whom source a proportion of their energy supply from renewables, to give you a wider choice when switching your energy supplier.”

There is no doubt about it; clean energy is the future.

More and more countries are stepping forward to announce their commitment to being greener, most recently, the US, Canada and Mexico who together pledged that 50% of their power would come from clean energy by the year 2025. That’s a huge promise, and solar power is going to play an enormous part in hitting such ambitious targets.

For further information, loveenergysavings.com

please

visit:

www.

[1] https://irenanewsroom.org/2016/06/22/solarenergy-could-power-13-of-the-world-by-2030/

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RENEWABLE ENERGY

XBRL US JOINS SUNSPEC ALLIANCE TO DEVELOP DATA STANDARDS FOR SOLAR INDUSTRY

XBRL US announced on 20th July that it is part of a SunSpec Alliance project team establishing the open Solar Data eXchange (oSDX) to make it easier to aggregate and share solar data, thereby facilitating more efficient and cost-effective financing of distributed energy projects.

The project is part of the U.S. Department of Energy SunShot Initiative’s Orange Button program that aims to set data standards for the solar industry. Growth in the solar market necessitates the streamlining of the collection, management and exchange of solar datasets to protect consumers, increase efficient pricing and support new and existing business in the solar marketplace.

“We are pleased to work with XBRL US on this important program,” added Thomas Tansy, Chairman of the SunSpec Alliance. “XBRL’s expertise in financial data reporting is unparalleled in industry generally. Their participation in this initiative is a strong signal that solar has joined the mainstream of finance.”

The XBRL data standard is uniquely suited to transport financial datasets that are needed to communicate distributed solar financial disclosures. XBRL US was responsible for building standard data taxonomies for U.S. GAAP reporting by public companies, as well as reporting by mutual funds and credit rating agencies under contract with the U.S. Securities and Exchange Commission, and has also built industrydriven taxonomies for data collection in surety bond underwriting and corporate action events. As part of the SunSpec Alliance project team, XBRL US will be tasked with leading a working group to build out the solar energy taxonomy, leveraging elements from the U.S. GAAP Taxonomy and from existing data standards in the solar industry.

“Data standards increase efficiency, reduce costs and delays in financing of all types,” said Campbell Pryde, President and CEO, XBRL US, “The Department of Energy and the solar industry recognise the benefits that data standards can bring and we look forward to collaborating on a comprehensive plan for standards in this rapidly growing industry.”

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To build out the financial terms needed for the taxonomy, XBRL US has invited representatives from solar financing, insurance, surety, accounting and software to participate in the working group, including Wells Fargo.

“Solar origination and portfolio management requires significant amounts of data collection from multiple sources which today is largely a manual process,” said Jon Previtali, Vice President of Wells Fargo Renewable Energy and Environmental Finance. “Computer-readable data standards can automate much of that process, improving the timeliness and efficiency of that process.”

“Working with XBRL allows us to align the information the financial markets need with insurance and surety markets,” said K. Dixon Wright, Senior Vice President of Wells Fargo Insurance Services. “This will expand the value to significantly more stakeholders throughout the life cycle of the solar project.”

To learn more about the initiative for open solar data exchange, http://xbrl.us/solar For more information, please visit www.sunspec.org and http://xbrl.us

RENEWABLE ENERGY

45

DEALS

EDF RENEWABLE ENERGY AND AXIUM INFRASTRUCTURE ENTER INTO AN AGREEMENT TO PARTNER ON SLATE CREEK WIND PROJECT

EDF Renewable Energy (EDF RE) announced on July 11 that a consortium led by Axium Infrastructure (Axium) has executed a purchase and sale agreement to acquire a 50% ownership interest in the Slate Creek Wind Project. The transaction is subject to customary conditions precedent.

The 150 MW Slate Creek Wind Project in Sumner County, Kansas reached commercial operation on December 29, 2015. The wind facility is comprised of 75 Vestas 2 MW wind turbines. Kansas City Power & Light purchases the electricity generated pursuant to a 20-year, fixed-price power purchase agreement.

of Axium Infrastructure US Inc. “With this transaction, we continue to build our US wind portfolio, increasing diversification across wind resource regions, power markets and turbine technologies.”

This transaction marks the third acquisition by Axium in partnership with EDF EN North America. Upon the closing of the Slate Creek transaction, Axium and its investors will hold interest in four assets totaling 277 megawatts (MW) of installed capacity alongside EDF EN Canada and EDF Renewable Energy. All of the assets are fully contracted under long-term power purchase agreements.

“The EDF RE team is excited to bring their expertise as developer, asset manager and operator to this first partnership with Axium in the United States,” commented Raphael Declercq, Vice President of Portfolio Strategy. “In addition to this deal, we have transacted with Axium on two solar assets in Ontario in 2012 and on the Saint-RobertBellarmin wind farm in 2014. The sale of equity stakes in our assets represents an integral part of our business model to maintain a balance between growing our own portfolio while continuing to help fund the development of new projects.”

“We are delighted to partner once again with EDF RE,” said Paulo Arencibia, Vice President and Investment Director

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EDF RE will remain involved in the project as a 50% co-owner and will provide management services. EDF Renewable Services will continue to provide a portion of the current operations and maintenance services as well as 24/7 remote monitoring from its Operations Control Center (OCC).

EDF Renewable Energy is one of the largest renewable energy developers in North America with 8 gigawatts of wind, solar, storage, biomass and biogas projects developed throughout the US, Canada, and Mexico.

Axium Infrastructure is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure manages dedicated infrastructure funds having $1.5 billion in assets under management as well as more than $900 million in coinvestments.

For more information visit: www.edf-re.com and www. axiuminfra.com

DEALS

ETRION AND TAMAGAWA HOLDINGS ANNOUNCE SIGNING OF THE PROJECT FINANCE TO BUILD A 9.5 MW UTILITYSCALE SOLAR PROJECT IN JAPAN

Etrion Corporation (“Etrion”) announced on July 11 the signing of project financing and planned construction of the Aomori solar power project located in Misawa city in the Aomori prefecture of the Tohoku region in Japan. Tamagawa Holdings Co., Ltd., was the initial developer and retains an interest in the project. Financing was arranged by Sumitomo Mitsui Trust Bank, Limited (“SuMi Trust”).

Marco A. Northland, Etrion’s Chief Executive Officer, commented: “I am delighted to announce the closing of $29 million project financing for our 9.5 MW Aomori PV project in Japan. This is our third utility-scale solar project in Japan. It continues to demonstrate the excellent partnership with Hitachi High-Tech, who will be building the project on behalf of the partnership. Aomori also represents several important firsts for Etrion. It is our first project involving a local developer, Tamagawa Holdings Co. Ltd. It will also be the first project in Japan where Etrion will act as the Asset Manager, further confirming the market’s acceptance of Etrion as a reliable, best-in-class Independent Power Produced (IPP), developer and owner. Japan continues to be our main focus and I expect more projects to reach financial close in the near future.”

The total project cost will be financed approximately 85% through project debt from SuMi Trust with a tenor equal to construction period and 19 years of operations. The remaining approximate 15% equity portion will be funded pro-rata based on the respective ownerships, with Etrion 60%, Tamagawa Holdings 30% and Hitachi High-Tech 10%.

Japan is one of the largest solar PV markets in the world with over 36 gigawatts (“GW”) of installed capacity and a national solar power target of 28 GW by 2020.

Aomori Solar Project (9.5 MW)Aomori is a 9.5 MW utilityscale solar PV power plant to be built in Aomori Prefecture of Japan. The project consists of four sites. Constructionrelated works are expected to commence in July 2016 and the solar project is expected to be fully operational by the third quarter of 2017. The solar power plants will be built on 164 hectares of owned land and the facilities will connect through the Tohoku Electric Power Co., Inc. utility (“Tohoku Electric Power utility”). Each project will enter into a twentyyear power purchase agreement (“PPA”) with the Tohoku Electric Power utility and will receive ¥36 per kilowatt-hour (“kWh”) produced (approximately US$0.35 per kWh).

In 2012, Etrion and Hitachi High-Tech signed a development agreement to develop a pipeline of solar assets in Japan.

Under this agreement, both parties provide the key functions necessary to successfully develop, build and operate solar projects in Japan (including, but not limited to, obtaining the relevant permits and authorisations to build and operate the solar power facilities, developing relationships with local utilities and land owners, performing the EPC-related services and providing O&M and asset management-related services). Aomori is the third solar project to be built under this arrangement and the companies are targeting to reach 100 MW either under construction or shovel-ready by the first half of 2017.

Additional information is available at: www.etrion.com and www.etrion.com

Once operational, Aomori is expected to produce approximately 10.7 gigawatt-hours (“GWh”) of solar electricity per year.

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DEALS

EXXONMOBIL TO ACQUIRE INTEROIL IN TRANSACTION WORTH MORE THAN $2.5 BILLION

Exxon Mobil Corporation (NYSE: XOM) and InterOil Corporation (NYSE: IOC, POMSoX: IOC) on July 21 announced an agreed transaction worth more than $2.5 billion, under which ExxonMobil will acquire all of the outstanding shares of InterOil (the ExxonMobil Transaction).

“InterOil’s resources will enhance ExxonMobil’s already successful business in Papua New Guinea and bolster the company’s strong position in liquefied natural gas.”

InterOil Chairman Chris Finlayson said, “Our board of directors thoroughly reviewed the ExxonMobil transaction and concluded that it delivers superior value to InterOil shareholders. They will also benefit from their interest in ExxonMobil’s diverse asset base and dividend stream.”

Under the terms of the agreement with ExxonMobil, InterOil shareholders will receive: A payment of $45.00 per share of InterOil, paid in ExxonMobil shares, at closing. The number of ExxonMobil shares paid per share of InterOil will be calculated based on the volume weighted average price (VWAP) of ExxonMobil shares over a measuring period of 10 days ending shortly before the closing date (Share Consideration).

A Contingent Resource Payment (CRP), which will be an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe, up to a maximum of 10 tcfe. The CRP will be paid on the completion of the interim certification process in accordance with the Share Purchase Agreement with Total SA, which will include the Antelope-7 appraisal well, scheduled to be drilled later in 2016. The CRP will not be transferrable and will not be listed on any exchange.

Compelling Benefits of the Transaction When concluded, this transaction will give ExxonMobil access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres, including PRL 15. The Elk-Antelope field in PRL 15 is the anchor field for the proposed Papua LNG project.

ExxonMobil’s more than 40 years of experience in the global LNG business enables it to efficiently link complex elements such as resource development, pipelines, liquefaction plants, shipping and regasification terminals,

which it has demonstrated through the PNG LNG project, working closely with co-venturers, national, provincial and local governments, and local communities. ExxonMobil will bring to bear its industry-leading performance and strong commitment to excellence as it grows its business in Papua New Guinea.

The PNG LNG project, the first of its kind in the country, was developed by ExxonMobil in challenging conditions on budget and ahead of schedule and is now exceeding production design capacity, demonstrating the company’s leadership in project management and operations.

ExxonMobil will work with co-venturers and the government to evaluate processing of gas from the Elk-Antelope field by expanding the PNG LNG project.

This would take advantage of synergies offered by expansion of an existing project to realize time and cost reductions that would benefit the PNG Treasury, the government’s holding in Oil Search, other shareholders and landowners.

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DEALS

Path to Completion The ExxonMobil Transaction has been unanimously approved by the boards of both companies. The InterOil board unanimously recommends that InterOil shareholders approve the ExxonMobil Transaction.

The ExxonMobil Transaction will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (Yukon) and will require the approval of at least 66 2/3 percent of the votes cast by InterOil shareholders at a special meeting expected to take place in September, 2016.

In addition to InterOil shareholder and court approvals, the ExxonMobil Transaction is also subject to other customary conditions. Subject to obtaining the aforementioned approvals and satisfaction of closing conditions, the ExxonMobil Transaction is expected to close in September, 2016.

Further information regarding the transaction with ExxonMobil will be included in an information circular, which will be mailed to InterOil shareholders in due course. Copies of the key transaction documents for the ExxonMobil Transaction (being the arrangement agreement and the information circular) will be available online under InterOil’s corporate profile at www.sedar. com.

Oil Search Transaction The InterOil board of directors, in consultation with its independent legal and financial advisors, determined that the ExxonMobil Transaction is superior to the previously announced transaction with Oil Search Limited (ASX:OSH, POMSoX: OSH) and so advised Oil Search on July 18, 2016. Immediately prior to entering into the arrangement agreement with ExxonMobil, InterOil terminated its previously announced arrangement agreement with Oil Search, and ExxonMobil is paying Oil Search the termination fee in accordance with the requirements of the Oil Search arrangement agreement on behalf of InterOil. The previously scheduled Special Meeting of Shareholders to vote for the approval of the Oil Search transaction has been cancelled.

Advisers Davis Polk & Wardwell LLP and Blake, Cassels & Graydon LLP served as legal advisers to ExxonMobil in relation to the ExxonMobil Transaction. Credit Suisse (Australia) Limited, Morgan Stanley & Co. LLC and UBS served as financial advisers to InterOil in relation to the ExxonMobil Transaction, and Wachtell, Lipton, Rosen & Katz and Goodmans served as its legal advisers. Morgan Stanley & Co. LLC provided the InterOil board with a Fairness Opinion.

For more information, visit www.exxonmobil.com

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HUDSON TECHNOLOGIES AWARDED DEPARTMENT OF DEFENSE CONTRACT WITH AN ESTIMATED MAXIMUM VALUE OF $400 MILLION Hudson Technologies, Inc. (NASDAQ:HDSN) announced on July 18 it has been awarded, as prime contractor, a five-year contract including a five-year renewal option, by the United States Defense Logistics Agency (“DLA”) with an estimated maximum value over the term of the agreement of $400 million in sales to the Department of Defense.

The fixed price contract is for the management and supply of refrigerants, compressed gases, cylinders and related items to US Military Commands and Installations, Federal civilian agencies and Foreign Militaries. Primary users include the US Army, Navy, Air Force, Marine Corps and Coast Guard.

Kevin Zugibe, Chairman and CEO of Hudson Technologies, commented, “This award was two years in the making and represents a transformative win for Hudson. In January of 2015, we executed a strategic acquisition of a West Coast based supplier of refrigerants and compressed gases to expand our presence in the industrial gas sectors. This acquisition provided us with complementary capabilities to subsequently bid on, and ultimately win, this large DoD contract. While the ultimate amount of revenue will depend on order levels, this award solidifies our presence in the refrigerants and industrial gas sectors and we believe will contribute considerable future revenue and earnings growth.”

For further information on Hudson, please visit www. hudsontech.com

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NORTHSHORE MANAGEMENT ACQUIRES MAJORITY OWNERSHIP IN FIVEWORX

Fiveworx, a customer engagement and communications software company for the energy sector, announced on July 12, that Knoxville-based Northshore Management Company has acquired majority ownership in Fiveworx. As part of the transaction, Fiveworx management and founders will maintain an equity position in the company.

The transaction will allow the company to accelerate development of its persona-based email marketing and marketing automation software platform, enhance client service, and expand its national reach. Fiveworx has seen impressive expansion to date among electric and gas utilities and energy service providers, and this investment allows the company to build on that momentum to meet increasing demand.

Fiveworx has received numerous industry recognitions this year for its work in using persona-based content, customer journeys, and custom-built email marketing and marketing automation software to engage and motivate utility customers to action. Utility client program, Alliant Energy Advisor, recently received the Midwest Energy Efficiency Alliance’s 2016 Inspiring Efficiency Award in Education and Utility Communicators International’s 2016 Better Communications Competition Gold Award in the Digital Properties Category.

In addition, Fiveworx will gain access to the extensive business acumen and experience of Northshore’s top executives, who will help Fiveworx in its journey of dramatically expanding its service offerings and client base.

Visit www.fiveworx.com to learn more.

“From the beginning, our vision has been to help utilities improve their relationships with their customers, drive greater participation in programs and services, and get a bigger bang for their marketing buck by communicating with customers on a more personal level,” says Suzanne Shelton, Co-Founder of Fiveworx. “The results from our award-winning work show we’re doing just that. With Northshore’s investment, we believe that these additional resources will take our product, client service, and business development to the next level.”

As part of the deal, Northshore is now the majority owner of Fiveworx, though the founders and key personnel will retain ownership stakes and leadership roles in the company.

“The team at Fiveworx is enabling utilities and energy service providers to more deeply connect with and engage their customers to take advantage of a variety of products and services,” says Mike West, CEO of Northshore Management. “Their unique and innovative approach of using persona-based content and custom-built marketing automation is changing the way utilities communicate with their customers. We are thrilled to be a part of that mission and see applications for the core persona-based marketing automation tool Fiveworx has built in other vertical markets as well.”

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WAVE SOLAR ANNOUNCES PARTNERSHIP WITH MOSAIC Mosaic, the nation's largest provider of home solar loans, and Wave Solar, a leading marketing software company that delivers innovative and low-cost customer acquisition for solar installers, have established a new partnership to provide Mosaic clients access to Wave Solar’s lead generation and qualification software.

In conjunction with the partnership, Mosaic made an equity investment in Wave Solar to help build and launch a platform that reduces the cost of finding and qualifying homeowners for financing.

By combining Mosaic’s leading home solar loan platform with Wave Solar’s innovative marketing technology, the partnership will improve the solar customer acquisition experience and increase competitiveness and profitability for installers.

“Mosaic empowers its partners with its category-defining lending technology platform, and our partnership with Wave Solar will provide our clients access to a powerful and cost-effective flow of customer leads, effectively reducing their cost of customer acquisition by over 50%,” said James Robinson, Vice President of Marketing at Mosaic.

“We're excited for the opportunity to have Mosaic as an investor and partner to build the top software platform for customer acquisition in the industry,” said Colin James Walsh, CEO of Wave Solar. “By reducing soft costs, we can help to accelerate deal flow and increase profitability for Mosaic’s installer partners.”

Wave Solar was formed as a SunShot Initiative collaboration between Mosaic Executive Colin James Walsh and Wade Hobb of Between Ads. Wave Solar beat DOE targets by generating hundreds of signed residential solar contracts at or below $1500 per installation, and in April it was spun off into an independent company serving some of the largest residential solar installers in the United States.

For more information, visit http://joinmosaic.com and https://wavesolar.com

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