Energy Magazine issue four (September 2016) by AI Global Media

ISSUE THREE - SEPTEMBER 2016

ENERGY g l o b a l

BREXIT TO HAVE A SIGNIFICANT KNOCK-ON EFFECT ON UK'S NUCLEAR AND RENEWABLE ENERGY PROJECTS Page 18 IKEA TO GROW RENEWABLE PORTFOLIO WITH FUEL CELL SYSTEM FOR GENERATING MORE ONSITE POWER AT STORE IN NEW HAVEN, CT Page 22

GERMAN MANUFACTURERS JOIN THE RACE FOR ELECTRIC VEHICLES Page 34

CONTENTS 4.

News

OVERVIEW 12. A BIG STEP FORWARD FOR THE UK'S NUCLEAR REVIVAL 14. EU PLAN TO CLEAN UP ROAD TRANSPORT IS AMBITIOUS, BUT SHIPS AND PLANES IGNORED 16. INNOVATIVE UPCYCLING OF FOOD WASTE EXPANDS OPPORTUNITIES FOR FOOD WASTE RENEWABLE ENERGY 18. BREXIT TO HAVE A SIGNIFICANT KNOCK ON EFFECT ON UK'S NUCLEAR AND RENEWABLE ENERGY PROJECTS 20. GE JOINS WITH THE MIT ENERGY INITIATIVE TO DEVELOP ADVANCED TECHNOLOGY SOLUTIONS FOR TRANSFORMING GLOBAL ENERGY SYSTEMS 22. IKEA TO GROW RENEWABLE PORTFOLIO WITH FUEL CELL SYSTEM FOR GENERATING MORE ONSITE POWER AT STORE IN NEW HAVEN, CT 24. TOP 4 EMERGING TRENDS IMPACTING THE GLOBAL SMART SOLAR MARKET THROUGH 2020, BY TECHNAVIO OIL & GAS 26. EU INVESTS 187.5 MILLION EURO IN FIRST GAS PIPELINE BETWEEN ESTONIA AND FINLAND 28. LOCAL PEOPLE A STEP CLOSER TO UNLOCKING UP TO A BILLION IN SHALE GAS REVENUES 30. OFFSHORE SAFETY CONTINUES TO IMPROVE, SECTOR REPORT SHOWS INFRASTRUCTURE & TECHNOLOGY 32. EU FUNDS A NEW 140 KM ELECTRICITY LINE IN BULGARIA 34. GERMAN MANUFACTURERS JOIN THE RACE FOR ELECTRIC VEHICLES 36. HAZZARD – UTILITY REGULATOR HAS A KEY ROLE TO PLAY IN DRIVING IMPROVEMENTS IN WATER AND SEWERAGE SERVICES 38. WORLD FIRST AUCTION RESULTS SHOW ENERGY STORAGE IS READY TO DELIVER ENERGY EFFICIENCY 40. AUTOMOTIVE COATING TO GAIN FROM INCREASED DEMAND FOR ENERGY EFFICIENT TECHNOLOGIES 42. RESOURCE RECOVERY TECHNOLOGIES PROVE A WINNING INNOVATION IN THE WASTEWATER TREATMENT INDUSTRY 44. STRINGENT EMISSION REGULATIONS AND NEED FOR FUEL EFFICIENCY TO CREATE OPPORTUNITIES FOR THE GLOBAL INDUSTRIAL TURBOCHARGER MARKET THROUGH 2020, REPORTS TECHNAVIO 46.

Deals

EDITORS NOTE The European offshore wind industry attracted a record €14 billion in new investments during the first six months of 2016. Seven projects reached final investment decision this year, financing a total of 3.7GW of new capacity according to WindEurope. This and many other breaking stories are covered in this September edition of Global Energy News. The historic vote by the United Kingdom to exit the European Union has had ramifications for not just the United Kingdom and Europe, but the wider global economy. The UK energy sector is keenly watching events unfold, as Brexit has put a cloud of uncertainty over the future of nuclear projects, UK’s commitment to renewable energy and the costs of power infrastructure projects according to Frost & Sullivan. In other breaking news, the European Commission recently allocated €187.5 million for the construction of the Balticconnector, the first Estonia-Finland gas pipeline. This will end the gas isolation of Finland and develop the Baltic regional gas market, contributing to the security of supply in the entire Baltic region. The race to electrify mobility took an important step forward with a series of announcements from German carmakers on new electric cars and trucks. This coincided with a strong signal from the European Commission, through its LowEmission Mobility Strategy, that electric vehicles, and not diesel-powered ones, have the principal role in decarbonising transport. I trust that you will enjoy this illuminating edition.

NEWS

New Report Says Agriculture Can Help Combat Climate Change Agriculture can play a significant role in helping to reduce greenhouse gas (GHG) emissions according to a recent scientific report. As part of Monsanto Company’s commitment to make its own operations carbon neutral by 2021, the company commissioned third-party expert ICF International to examine the potential for reducing GHG emissions through agriculture in the United States.

The resulting report titled, ‘Charting a Path to Carbon Neutral Agriculture: Mitigation Potential for Crop Based Strategies,’ shows that widespread adoption of recommended practices could potentially result in more than 100 million metric tons of carbon dioxideequivalent emissions reductions in the United States alone. That’s equal to the carbon absorption potential of more than 2.5 billion tree seedlings grown for 10 years.

of carbon released from the soil into the atmosphere. This practice also helps preserve soil structure and soil organisms, which improves soil health. Precision nutrient management. Precision agriculture and nitrification inhibitors can be effective in reducing GHG emissions. Precision agriculture helps determine the appropriate amount of fertiliser and pesticide to use on the field, and where they need to be applied. By using GPS guidance and variable rate technology when applying the inputs, farmers optimise nutrient and fuel use while improving profitability. By adding inhibitors, farmers utilise fertiliser more efficiently, reducing emissions and achieving the same yield.

This report comes after Monsanto made its commitment to be carbon neutral by 2021. That commitment included the sharing of data and modeling results with the broader agriculture community in hopes of encouraging the adoption of best practices and reinforcing the role carbon neutral cropping systems can play in reducing GHG emissions.

Long-term strategies also can help reduce carbon emissions, but will require more research and time to scale-up. These strategies include: Ethanol production from corn stover: Corn stover (the stalks, leaves and cobs left in the field after corn harvest) represents a sizeable renewable source of biomass to augment ethanol production. This material could help reduce emissions from fossil fuels while sustainably managing excess crop residues in the field.

The report focused on near-term strategies, including: Cover crops. The report found that the greatest near-term potential for reducing GHG emissions through agriculture comes from the planting of cover crops, grown between primary crop seasons. Cover crops, which are currently grown on only about 3-5 percent of U.S. crop acreage, can prevent soil erosion and help to absorb and keep carbon stored in the soil.

Utilize crop material left in the field after harvest. There also is a possibility that available excess corn stover could be burned alongside coal in coal-fired power plants, which would reduce the amount of fossil fuel used through

Conservation tillage. The second largest potential comes from reducing or eliminating soil tillage, which enables farmers to save money and resources while limiting the amount

NEWS

the use of this renewable source of energy. Available corn stover also could be processed into plant-based charcoal (biochar) that could be incorporated into the soil to increase soil health and store carbon in the soil not in the atmosphere. “Agriculture has the potential to play a critical role in addressing climate change,” said Debbie Reed, Executive Director with the Coalition for Agricultural Greenhouse Gases. “This report adds another critical set of data points to help quantify and demonstrate how the agriculture community can take actionable steps, both in the near-term and long-term that will have a substantial and positive impact on our planet.” For more resources and information on Monsanto’s climate change efforts and collaborations, see Monsanto’s 2015 sustainability report, Growing Better Together. Go to http://monsanto.info/2bNMKIF to access the ICF report.

NEWS

QRL Launches Campaign for Radiator Energy Labelling

British manufacturer QRL Radiator Group has launched a campaign for the introduction of an energy labelling system for radiators – similar to the one used for boilers, renewables, hot water cylinders and other household essentials.

Launched on 23rd August, QRL’s Don’t Omit Emitters campaign calls for the industry to come together and petition the government to include radiators in mandatory efficiency ratings. Radiators are not currently covered by the EU’s ErP (Energy-related Products) Directive and its colour-coded energy labelling system, with efficiency bandings rated A+++ to G. This means there is no requirement for manufacturers to produce an energy label for radiators, or for installers to include radiators when producing the package label indicating whole-system efficiency.

likely that product energy labelling will continue in some form in the UK. At QRL, we’re urging the government not to overlook radiators any longer – and we’re asking anyone who supports more affordable and efficient heating for all to sign our petition calling for change.”

David Kerr, CEO at QRL Radiator Group, says: “At a time when everyone connected with the heating industry – from government right through to manufacturers and installers – is putting efficiency at the top of the agenda, it’s ludicrous that there is no energy labelling system in place for radiators. Of course it’s important that we focus on insulation and the heat source, but if emitters aren’t included as the third piece of the efficiency puzzle then we risk undermining the performance of the system as a whole.

Mike Wright, product development manager at QRL Radiator Group, continues: “Unfortunately, when it comes to radiators, outdated heating technology is the norm in the UK. As a result, inefficient emitters are costing homes and businesses thousands, whilst having a massive impact on our collective carbon footprint. The introduction of clear, recognisable and universal energy labels is the most effective way for the trade (and their customers) to confidently pit one product’s performance against another’s. To make this happen, it’s up to manufacturers to lead the way – but for the government to really sit up and take notice, we need the whole industry to rally together, sign the Don’t Omit Emitters petition and make itself heard.”

In its Don’t Omit Emitters manifesto – outlined on the QRL website – the company argues that proper energy labelling would make it easier for people to identify high-efficiency emitters – ones that will improve heating system performance, cut costs and reduce emissions.

“We already have labels in place for boilers, heat pumps, micro CHP and hot water cylinders, so the introduction of a proper efficiency ratings system for radiators is well overdue. Our Don’t Omit Emitters campaign is aiming to make this right. Whilst the future remit of the ErP is unclear following the result of the EU referendum, it’s

For more information about the Don’t Omit Emitters campaign – and to sign the online petition – visit http://www.qrl-radiators.com/petition/

NEWS

EBRD Funds Expansion of Water Network in Visoko, BiH

The European Bank for Reconstruction and Development (EBRD) is supporting an upgrade of the water supply network in Visoko, a municipality in Bosnia and Herzegovina, which will raise potable water quality to European standards and connect a third of the population to water network, providing 11,500 people with potable running water for the first time.

The loan agreement was signed in Sarajevo by EBRD President Sir Suma Chakrabarti and the Minister of Finance and Treasury of Bosnia and Herzegovina, Vjekoslav Bevanda. The loan support agreement was signed by the Mayor of Visoko, Amra Babic.

Bosnia and Herzegovina. This EBRD funding is a welcome investment in the infrastructure in the municipality of Visoko, and is further evidence of effective cooperation between the EBRD and the Government of Bosnia and Herzegovina.”

The €4.5 million sovereign loan for the benefit of Visoko’s municipal water company will enable the municipality to significantly reduce water losses. Thanks to technical cooperation funded by grants from Germany and the EBRD the municipal water company, which is currently loss-making, will be restructured, strengthened, and made commercially sustainable.

The Mayor of Visoko, Amra Babic, added: ‘This project, which has been badly needed for years, will make a real difference to people’s lives. We have been trying for many years to realise this project to expand our water supply network and to improve the quality of water supplies up to EU standards. The EBRD is supporting us not only by financing this investment but also in providing help to restructure the municipal water company and make it financially sustainable.”

Signing the loan agreement, the EBRD President said the “signing, which will bring drinkable running water to thousands of people, is an important part of our work in Bosnia and Herzegovina. We expect to see a record level of EBRD investment here in 2016. Including this and other water projects which directly benefit people’s lives, we hope to provide up to €200 million this year, supporting crucial projects in infrastructure, the financial sector and SMEs, including women in business.”

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has invested more than €1.9 billion in over 133 projects in the country. Reducing water losses in the Visoko municipality is part of addressing a global resource efficiency challenge. The EBRD’s strategic priorities for the period 2016-18 for its countries of operations are re-energising growth, strengthening regional integration and addressing global challenges.

Minister Bevanda added: “I am delighted to sign this loan agreement and to welcome EBRD’s President, Sir Suma Chakrabarti, to

http://www.ebrd.com/

NEWS

Future of Hydropower The UK Government must work closely with its Scottish counterpart to secure the future of the hydropower industry, according to Business, Innovation and Energy Minister Paul Wheelhouse. Visiting a pumped hydro storage plant at Foyers, near Loch Ness, Paul Wheelhouse said the industry was ‘at a cross roads’ with new projects coming on stream but with future investments and jobs threatened by the UK Government subsidy regime.

Mr Wheelhouse highlighted the role pumped hydro storage – a mature and highly flexible technology that enables the storage of renewable power – could play in Scotland’s energy system and called for closer working between the two governments on extending pumped storage capacity.

“As well as being able to further support peak demand, expanded pumped hydro storage would also be able to effectively store greater levels of electricity at times when renewable energy output is high but demand is low. However, this part of the hydropower industry requires substantial government support - not the kind of extra hurdles that changes in subsidies from the UK Government have put in place. That is why I am using this visit to urge the UK Government to do all that is can to support the real and continued potential in this energy resource.

The Minister said: “Hydro generation in 2015 was at a record high level - 5,780 GWh, up 6.3% on 2014. But the hydro sector is at a crossroads, with a number of exciting developments opening, but with some future investments, especially in small scale hydro, at risk due to changes in subsidies, brought in by the UKG, putting jobs at risk in many rural communities.

“We are committed to supporting the development of renewables as part of a balanced energy portfolio, and are already developing an overarching energy strategy, setting out what we can do to optimise the benefits of Scotland’s significant energy resources and expertise through to 2030. We will do all that we can to ensure hydropower, and pumped hydro storage, will play an important role as part of a balanced energy portfolio.”

“Pumped hydro storage – like the facility I have seen today in Foyers – is a case in point. This tried and tested technology can play a key role in enhancing energy security, providing local jobs and helping to integrate renewables onto the network.

NEWS

Offshore Wind in Europe Draws €14 Billion Investment in First Half of 2016 The European offshore wind industry attracted a record €14 billion in new investments during the first six months of 2016. Seven projects reached final investment decision this year, financing a total of 3.7GW of new capacity. The UK accounted for nearly three-quarters of the new investments.

The volume of new grid-connected installations in the first half of 2016 was 511 MW, 78% down on the same period in 2015. This is expected to pick up next year and toward 2020.

Dickson added: “The costs of offshore wind are falling, but we need healthy volumes in the market to sustain this. The current pipeline of projects is not enough, and the commitments Member States have so far made for beyond 2020 fall well short of what’s needed. This risks undermining Europe’s competitive position in offshore wind. We’re number one today with over 90% of the world’s capacity, but the US and China are now moving to rapidly expand their offshore wind investments.”

Giles Dickson, CEO of WindEurope, said: “The record investment numbers show a clear industry commitment to offshore wind. We expect installations will pick up significantly in 2017 but there are a lot of challenges out there still on offshore wind. Not least the uncertainty over future volumes and regulation in many key markets for the period after 2020. We’re a long way from being able to say job done on offshore wind.”

Clearer deployment goals and long-term visibility on tender volumes and timetables will mean a strong industry and supply chain – and competitive bidding leading to lower costs. It will also mean lower costs of capital, and with offshore wind so capex heavy, this is key to total cost reduction. Coordination of national tenders – which the 9 countries committed to in their recent MoU – will also help.

Total installed offshore wind capacity in Europe now stands at 11,538 MW across 82 wind farms in 11 countries. Only Germany (258 MW) and the Netherlands (253 MW) added new capacity in the first 6 months. The average size of the 114 new turbines installed was 4.8 MW, up from 4.2 MW a year ago. In June, energy ministers from 9 European countries signed a Memorandum of Understanding (MoU) and Work Programme to enhance their cooperation on offshore wind. In parallel 11 energy companies signed a declaration to reduce offshore wind costs to below €80/MWh by 2025. This assumes an annual build-out of 4-7 GW of offshore wind from 2021 onwards.

NEWS

World's Largest Windfarm Receives Planning Go-Ahead The world’s largest offshore windfarm, Hornsea Project Two has received development consent from Business and Energy Secretary Greg Clark in mid-August. When complete, the windfarm will deliver up to 1,800 megawatts of low carbon electricity to around 1.8 million UK homes.

The windfarm would create up to 1,960 construction jobs and 580 operational and maintenance jobs. If built to the full capacity, the investment would total around £6bn providing a great opportunity for economic growth in the Humber region and beyond. Business and Energy Secretary Greg Clark said: “The UK’s offshore wind industry has grown at an extraordinary rate over the last few years, and is a fundamental part of our plans to build a clean, affordable, secure energy system. Britain is a global leader in offshore wind, and we’re determined to be one of the leading destinations for investment in renewable energy, which means jobs and economic growth right across the country.” Located approximately 89km off the Yorkshire coast, the windfarm will comprise up to 300 wind turbines and will connect to the grid at North Killingholme in North Lincolnshire. The Government is making £730m of financial

support available for renewable electricity generation this Parliament, sending a clear signal that the UK is open for business. The government expect 10GW of offshore wind installed by the end of this decade and could see up to 10GW of new offshore wind in the 2020s as costs come down. The decision was made on the merits of the scheme based on a report and recommendation from the Planning Inspectorate which was published on 16th August. RenewableUK’s Chief Executive, Hugh McNeal, added that the “announcement is the latest vote of confidence in the UK’s world-beating offshore wind market. This huge infrastructure project will provide much-needed investment and energy security for our country. Offshore wind represents a massive economic opportunity to the UK and our coastal regions. It is creating new jobs and regenerating local communities”.

NEWS

OVERVIEW

A BIG STEP FORWARD FOR THE UK'S NUCLEAR REVIVAL

A Big Step Forward for the UK’s Nuclear Revival, as Hinkley Point is Finally Approved by EDF – But Will the UK Government Stick to its Side of the Deal?

Jonathan Robinson, principal consultant, energy & environment at Frost & Sullivan said: “It has been said before that a crisis can force action and this is arguably the case with EDF’s decision on the 28th July to approve the construction of two new reactors at Hinkley Point. The Brexit vote had cast doubt on whether the investment would go ahead, but it has also acted as a catalyst in forcing a decision in order to try and prevent the entire project falling apart. The decision has been pending for several years and is seen as key to the renewal of the UK’s power infrastructure. When completed, it will supply 7% of the UK’s electricity, vital given the closure of all the UK’s coal plants by 2025 and the closure of nuclear plants in the 2020s and 2030s. What had not been anticipated by EDF was that the UK Government would immediately announce a review of the project, with a decision to be delivered in September. The reason for this action is the on-going contentious issue of the cost of the project, projections for which have continued to rise, and which mean that UK taxpayers will in effect be subsidising a project that assumes energy costs will be more than double what they are now when it is operational. The recent decline in wholesale gas costs coupled with the continued decline in renewables, particularly solar, have made new nuclear projects harder to justify. EDF has progressed slowly and the cost benefit position has gradually weakened. Critics of the project have been vocal in pressuring the government to think again and it appears to have worked. One key unknown are the views of new British Prime Minister, Theresa May. Having been broadly supportive as part of the last Cameron Government, she has not expressed any strong opinions so far. The change in government does give the UK a way out if it wants to abandon this deal, but after cutting renewable subsidies and mandating coal closures, it has limited options other than a renewable U-turn or massive

investment in gas, which does have security of supply implications. Even if the project is approved in September, the length of time it will take to come online will be a key issue, given the capacity gap that is looming in the UK. This approval does not mean the immediate start to construction and further delays are almost inevitable. Comparable nuclear projects in France and Finland have had massive cost and time overruns. Finland’s Olkiluoto is now running 9 years late and will take 15 years in total to construct. On this basis, even if Hinkley is started now it will not be online until the 2030s. The decision in September is said to be finally balanced. The UK Government is desperate to show that investment can continue to flourish in a post-Brexit UK and wants to be seen acting to secure the UK’s energy future, as well as providing the skilled jobs that this project will create. But it is also very concerned at the charge that tax payers’ money is being put into what many view as a very risky construction project. One possible solution could be that the UK Government pushes for a renegotiation of the deal, but this could potentially mean the withdrawal of EDF from the project. The stakes for UK-French relations and the UK’s future energy policy are very high indeed.” Web Address: www.frost.com

OVERVIEW

EU PLAN TO CLEAN UP ROAD TRANSPORT IS AMBITIOUS, BUT SHIPS AND PLANES IGNORED

New CO2 standards for cars, vans and, for the first time in Europe, trucks were announced last month by the European Commission in its long awaited Strategy for Low-Emission Mobility. The EU’s ambition is for greenhouse gas emissions from transport in Europe to be at least 60% lower in 2050 than in 1990. However, the legislative plan contained little on reducing emissions from the aviation and shipping sectors.

The Commission confirmed it is working on post-2020 CO2 reduction targets for cars and vans to help meet the long-term aim of zero emissions from road vehicles. It will assess the setting of an intermediate target before 2030, saying ‘the fleet renewal times would call for action earlier rather than later’. The Commission is also exploring the feasibility of measuring cars’ real-world fuel consumption and carbon dioxide emissions, which is now done for air pollutants (NOx) and would be a key deterrent for carmakers’ cheating. The Commission also said Europe will finally follow the US, China, Japan and Canada in introducing CO2 and fuel efficiency standards for trucks, the fuel economy of which has stagnated for 20 years. The truck CO2 standards would enter into force ‘well before 2030’. Meanwhile, road charging laws are set to be revised to allow for member states to differentiate charges for trucks based on their CO2 emissions. T&E welcomed the announcement of post-2020 fuel efficiency/CO2 standards for all road vehicles which will help member states meet their 2030 climate targets. T&E executive director Jos Dings commented: ‘The Commission has distributed the EU emission reduction target for 2030 to member states, and promised European action on transport to give them a helping hand. This is a good plan but whether it works will depend on how effectively the promises are delivered. Cutting transport CO2 emissions will not only tackle climate change but also address energy dependence, cut energy bills and create much-needed new jobs.’ The document also leaves open the possibility of a California-style mandate for manufacturers to supply ultra-low or zero-emission vehicles, which could provide certainty and economies of scale for Europeans to have a wider choice in electric vehicles. Meanwhile, plans to address fragmentation in the electric vehicle

market include improved compatibility of payment systems across borders and the provision of real-time information for charging points. In terms of energy, the Commission said food-based biofuels are to be gradually phased out and replaced by more advanced ones, though the detailed plans will not be known until the announcement of the EU’s post2020 bioenergy policy – due by the end of the year. T&E welcomed the news but said that the document’s support for natural gas trucks as a pan-European long-term solution is surprising given new evidence highlighting the high cost and low potential. The Commission also disappointed in its abdication of responsibility for aviation and shipping emissions to UN international organisations ICAO and IMO, which have been criticised for their ineffectiveness in tackling the sectors’ climate impact. T&E also pointed out that the Commission does not propose any major initiative to revitalise passenger rail, a key tool in decarbonising and electrifying transport. Jos Dings added: ‘While the European Commission has seized the initiative to decarbonise vehicles, the opposite is true for planes and ships despite the importance of European action in these sectors. Double hull tankers, lower-sulphur marine fuels, and carbon pricing for aviation are all policies ‘made in Europe’. Emissions from planes and ships must not be allowed to replace those cut from vehicles.’ Web Address: www.transportenvironment.org

OVERVIEW

INNOVATIVE UPCYCLING OF FOOD WASTE EXPANDS OPPORTUNITIES FOR FOOD WASTE MANAGEMENT

The concept of food waste management (FWM) has gained traction with the declaration of food waste reduction as a target in the UN Sustainable Development Goals. Countries across the globe are showing greater interest in reducing as well as managing food wastage. The present gap between the amount of food waste generated globally and the number of storage and recycling facilities in operation translates to significant opportunities for the development of effective FWM technologies.

New analysis from Frost & Sullivan, Emerging Trends and Opportunities in Food Waste Management, finds that policies favouring food waste reduction in Europe and North America and the setting of global targets greatly aid the development of FWM technologies. The most popular methods for FWM at present are composting and anaerobic digestion. However, they do not help salvage unspoilt food from the food waste. These processes can also be energy intensive, substantially reducing the overall environmental benefits of FWM.

in the extraction of edible ingredients from food waste, conversion of misshapen fruits to saleable products, and conversion of byproducts from food production.”

“Currently, there is a demand for technologies that can convert food unfit for human consumption to animal feed,” said TechVision research analyst Lekshmy Ravi. “Technology developers are simultaneously working on repackaging or repurposing food waste to food for human consumption using less energy-intensive solutions and employing novel management models.” There are considerable research and industry initiatives for the conversion of food waste to products such as plastics, fruit juices and food ingredients. Additionally, innovative FWM companies are trying to convert food waste to valuable products such as liquid fuels. While technology developers are looking to eliminate inefficiencies in FWM, it is also necessary to form strategic partnerships along the various links of the food supply chain. These synergies can help improve the efficiency of FWM and facilitate the exchange of technologies and techniques. “Eventually, companies are likely to adopt models that enable the efficient and cost-effective extraction of valuable products from food waste,” noted Ravi. “Overall, key emerging opportunities are expected to be

Emerging Trends and Opportunities in Food Waste Management, part of the TechVision subscription, offers a detailed account of FWM’s global trends. It discusses various solutions for FWM and studies the various pathways that could be adopted, as well as innovative technology and management solutions. Our expert analysts have identified emerging business models for FWM and employed Porter’s Five Forces to analyse the various FWM pathways. 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://frost.ly/p8

OVERVIEW

RENEWABLE ENERGY

BREXIT TO HAVE A SIGNIFICANT KNOCK-ON EFFECT ON UK'S NUCLEAR AND RENEWABLE ENERGY PROJECTS

The historic vote by the United Kingdom to exit the European Union has had ramifications for not just the United Kingdom and Europe, but the wider global economy. The UK energy sector is keenly watching events unfold, as Brexit has put a cloud of uncertainty over the future of nuclear projects, UK’s commitment to renewable energy and the costs of power infrastructure projects.

A short opinion analysis from Frost & Sullivan, Top 10 Implications of Brexit on the UK Energy Sector (http:// www.frost.com/sublib/display-report.do?id=9AAE00-41-00-00&src=PR), finds that barring some renegotiation of terms and conditions, Brexit might not affect the energy projects that have already been allocated funding. However, the future funding for UK interconnection projects could slide down the priority list or even be cancelled outright. Although the short-term impact of Brexit on the energy industry is likely to be benign, in the medium to long term, it could lead to challenges such as: • A rise in electricity prices; • Supply security issues due to the phasing out of coal plants; • Delays in nuclear power coming online; • A slowdown in new renewable energy projects. “It is important to note that despite Brexit, the UK remains a liberal and attractive investment destination,” said Frost & Sullivan energy & environment principal consultant Jonathan Robinson. “The withdrawal from the EU has caused some market turbulence, but the fact is that the UK’s ageing infrastructure needs to be replaced over the next 15 years and decisions on that have to start to happen”. The coalition government of 2010-2015 had already set in motion a massive energy reform programme that offered a framework for incentivising investment. Assuming construction on new nuclear projects does happen, stakeholders all along the sub-supplier chain will benefit immensely. If the nuclear renaissance does not occur, it is likely to translate into higher investments in other forms of power generation, such as renewable energy and natural gas.

The outlook for renewable energy worsened after the 2015 election, as the new government has reduced subsidies and created market uncertainty. Nevertheless, there is continued investment in local energy generation and investment in energy storage is set to increase significantly. The many non-European firms that have offices in the UK remain committed to the energy market. “There will continue to be uncertainty regarding the future strategies of the energy industry until the details of Brexit become clearer,” noted Robinson. “Assuming that the UK remains part of the single market, it will still have a role to play in the greater integration of Europe's electricity system.” Top 10 Implications of Brexit on the UK Energy Sector is part of the Energy & Environment Growth Partnership Service program. Frost & Sullivan’s related studies include: Future of the Smart Grid Industry, Global Solar Power Market, Global E-house Market for Power Distribution, Global Outlook of the Energy & Environment Industry, Global Distributed Energy Outlook, Global Smart Gas Meters Market, Global Demand Response Trends and Global Smart Electricity Meter Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Web Address: www.frost.com

RENEWABLE ENERGY

GE JOINS WITH THE MIT ENERGY INITIATIVE TO DEVELOP ADVANCED TECHNOLOGY SOLUTIONS FOR TRANSFORMING GLOBAL ENERGY SYSTEMS

GE (NYSE:GE) announced it will be joining with the MIT Energy Initiative (MITEI) to fund advanced technology solutions to help transform global energy systems. As a Sustaining Member of MITEI, GE will commit a total of $7.5 million over a five-year period ($1.5 million annually) and play an active role in MITEI’s research and project priorities.

Specifically, GE will participate in four of MITEI’s low-carbon energy centers to advance research and development (R&D) in key technology areas for meeting future energy needs: solar energy; energy storage; electric power systems; and carbon capture, utilisation and storage.

“GE’s support as a Sustaining Member and engagement in MITEI’s Low-Carbon Energy Centers will be extremely valuable in spurring further technology advancements to address complex energy and climate challenges— areas where GE’s wealth of expertise and history of developing solutions dovetail with MIT’s research,” said Robert Armstrong, director of MITEI. “We are excited to welcome GE and launch this relationship.”

“The world will need 50 percent more power in the next 20 years,” said Steve Bolze, president & CEO of GE Power. “GE and MITEI are proud to be working together to find new solutions to develop cleaner, more affordable and accessible energy solutions that will address this need. Together we will leverage our collective capabilities, research and technology solutions to help improve efficiency while reducing the impact of electricity generation on the environment.” GE will participate in supporting MIT faculty and student research through MITEI. Several GE customers are also members working with the initiative, including EDF, Exelon Corporation and Duke Energy. MITEI will also bring GE and other members together to connect innovation, business and policy to transform the energy industry. GE strives to be the world’s premier digital industrial company and is committed to working with the best and brightest minds to further unleash the power of digital solutions. MITEI’s relationship with GE will engage and involve all of GE’s energy-related businesses: GE Power, GE Renewable Energy, GE Oil & Gas, GE Energy Connections, GE’s Global Research Center, GE Global Growth & Operations, GE Ventures, and Current, powered by GE. Among the many benefits of the membership, GE will sponsor research programs at MITEI, contribute to MITEI’s Seed Fund to support novel and early-stage energy research proposals and participate in several conferences and learning opportunities each year.

MITEI’s Low-Carbon Energy Centers, announced last fall as a key component of MIT’s Plan for Action on Climate Change, represent a major part of MIT’s commitment to address climate change through engagement with industry, government and the philanthropic community. GE moved its global headquarters to Boston last week, moving into an interim space as it works to develop and build its new global headquarters campus in Boston’s Fort Point neighbourhood in 2018. The announcement continues GE’s investment and engagement in the Boston area. GE selected Boston because of its innovation, talent and infrastructure, as well as the strong ecosystem of companies, universities, start-ups and R&D resources the city hosts. The move to Boston will further strengthen GE’s focus to become the world’s premier digital industrial company. Web Address: www.ge.com

RENEWABLE ENERGY

IKEA TO GROW RENEWABLE PORTFOLIO WITH FUEL CELL SYSTEM FOR GENERATING MORE ONSITE POWER AT STORE IN NEW HAVEN, CT

IKEA, the world’s leading home furnishings retailer, on 23rd August announced plans to further the Swedish retailer’s renewable commitment with plans for its first biogas-powered fuel cell system on the east coast, at its store in New Haven, CT.

More than a year ago, IKEA completed installation of such a project at IKEA Emeryville, one of the Swedish company’s two San Francisco-area stores. And, earlier this summer, IKEA announced plans for similar projects at four additional California stores. Pending permits, the New Haven fuel cell system will be installed, commissioned and operational by this Fall, bringing the IKEA fuel cell portfolio to more than 1.5 MW. “We are excited about furthering our sustainability commitment with fuel cells at IKEA New Haven,” said Christof Stein, store manager. “Similar to our rooftop solar array, this fuel cell system will greatly reduce our carbon footprint and the store’s reliance on the power grid as well as contribute to our vision of creating a better everyday life for the many.” Slightly larger than the physical size of a commercial back-up generator, the 250-kw, biogas-powered project will produce approximately 2,081,376 kWh of electricity annually for the store, the equivalent of reducing 1,218 tons of carbon dioxide (CO2) – equal to the emissions of 233 cars or to providing electricity for 163 homes yearly (calculating clean energy equivalents at www.epa. gov/energy/greenhouse-gas-equivalencies-calculator). Combined with the 940.8-kW solar array installed atop the store in 2012, the fuel cell project will help generate a majority of the store’s energy onsite. For the design, development and installation of this fuel cell system, 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 flat-packs goods for efficient distribution. U.S. sustainable efforts include: recycling waste material; incorporating key measures into buildings with energy-efficient HVAC and lighting systems, recycled construction materials, warehouse skylights, and waterconserving restrooms; and operationally, no plastic bags in the check-out process, and selling only LED lighting. IKEA U.S. has installed electric vehicle charging stations at 14 stores and solar arrays at 90% of its locations, integrated two geothermal projects at two store locations and owns two wind farms. This investment in fuel cell technology reflects the company’s goal to be energy independent by 2020. Located on 20 acres near the I-95/I-91 interchange, the 311,000-square-foot IKEA New Haven opened July 2004 and features 10,000 exclusively designed items, 48 different room-settings, three model home interiors, a supervised children’s play area, and a 350-seat restaurant serving Swedish specialties such as meatballs with lingonberries and salmon plates, as well as American dishes. Other family-friendly features include a ‘Children’s IKEA’ area in the Showroom, baby care rooms, play areas throughout the store and preferred parking. 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 co-workers, 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. Web Address: www.ikea.com

RENEWABLE ENERGY

TOP 4 EMERGING TRENDS IMPACTING THE GLOBAL SMART SOLAR MARKET THROUGH 2020, BY TECHNAVIO

Technavio’s late August report on the global smart solar market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Sayani Roy, an industry expert for research in the power sector at Technavio, says, “The global smart solar market, which is in its nascent stage, is projected to grow rapidly during the forecast period as many countries are investing in various technologies and products that make up the market. The smart energy technologies are reducing carbon footprints in an environment apart from increasing the comfort of the user, and providing them with a solution for energy and cost saving.” The global smart solar market is expected to grow at an impressive CAGR of more than 15% owing to a rise in the installation of solar power systems, and smart energy devices and technologies. Solar power systems comprise the residential and non-residential sectors, and the smart energy devices and technologies include smart grids with solar panel, smart meters, and energy storage systems. Smart grid implementation has grown worldwide and is expected to rise further during the forecast period as a result of hike in its investments made by various countries, such as China and the US. The top emerging trends driving the global smart solar market according to Technavio energy research analysts are: • Increasing demand for solutions and services; • Reduction in solar PV cost; • Rapid deployment of smart grids; • Distributed energy resources and energy storage; • Increasing demand for solutions and services. The recent trend in the smart solar industry depicts the growth in demand for solutions and services due to advances in technology in components, such as smart meters, solar simulators, and grid intelligent components, services and applications of the smart solar. Thus most of the vendors are focusing on providing complete solutions for smart solar i.e. from components to the services. Also, the rise in demand for energy necessitates the need of energy management solutions and demands response services to be integrated with the installations. Now solution services, such as accuracy of bill and record of consumption of energy, are in demand, which

is fuelling the smart solar market. Another major factor will be intermittent nature of solar energy, which requires such services to manage the solar energy better. Hence, the smart solar is an integrated solution. Reduction in solar PV cost A decline in solar photovoltaic (PV) price has resulted in the growth of the global smart solar market. In the past decade, there has been a price decline of more than 40% globally. The cost of installing solar PV for a small residence of 3.5 kW was about $15,200 in 2011-2012 and in 2012-2013 it costs less than $9,120. Governments around the globe have played an important role by providing subsidies and grants for solar installations. Also, many vendors have lowered their prices to increase the demand for the product, which has led to the growth of the global smart solar market. Rapid deployment of smart grids There is a worldwide increase in deployment of smart grids with countries, such as China, the US, India, Spain, Germany, and France, enforcing ambitious, smart grid plans. Smart grid comprises of applications, such as smart energy meters, SCADA systems, IT, and other communication networks. These devices allow utilities to have comprehensive control and manage the digital assets that are present in the field. China is now the leading investment destination for smart grid solutions, with the country having spent more than $4 billion in 2013 alone. China plans to install smart meters in every household by 2017 that will provide grid to home and grid to utility connection. In 2015, the Indian government approved $210 million worth of investment for National Smart Grid Mission for planning, monitoring, and implementing grid modernisation. Europe has been deploying smart meters in connection with its smart grid implementation. Countries, such as Spain, the UK, and Germany, have been actively implementing smart meters. As a result, the total smart meter deployment for Europe by the end of 2020 is expected to reach 180 million units, up from the present 55 million units.

RENEWABLE ENERGY

Distributed energy resources and energy storage Distributed energy resources are the smaller energy source, which can be used to provide power to meet the regular demand. Energy storage is helping the grids to transform into a smarter grid. Distributed energy resources are driving the smart energy storage market, due to which the market is growing, and its demand is also increasing. A large number of investments are expected to be made in the energy storage market. For example, on September 30, 2015, NetExtra Energy announced that it will invest $100 million in the energy storage system in upcoming years to back up its fleet of solar and wind energy plants. Power industries are showing more interest in energy storage, specifically in battery storage as they are becoming cheaper. Distributed energy system now works in a two-way system with all the digitisation and energy storage facility. From power plant, i.e. generation, to enduser, that is consumption, the flow of information is from starting point to end point and vice a verse. â&#x20AC;&#x153;The distributed energy systems and energy storage are attached with the smart solar systems, which directly boosts the smart solar market worldwide,â&#x20AC;? says Sayani. Web Address: www.technavio.com

OIL & GAS

EU INVESTS 187.5 MILLION EURO IN FIRST GAS PIPELINE BETWEEN ESTONIA AND FINLAND

The EU is investing and supporting infrastructure that is needed to unite the energy markets. On 10th August, the European Commission has allocated €187.5 million for the construction of the Balticconnector, the first Estonia-Finland gas pipeline. The Balticconnector will end the gas isolation of Finland and develop the Baltic regional gas market. It contributes to solidarity and security of supply in the entire Baltic region.

Commissioner for Climate Action and Energy Miguel Arias Cañete said: "Diversifying energy sources and routes, and uniting the energy markets, is at the heart of the Energy Union. This is key to ensuring secure, affordable and sustainable energy for all EU citizens. What the Commission has started with the PolandLithuania pipeline (GIPL) we are now pursuing with the support to Balticconnector – promoting a chain of projects that will end the gas isolation of north-Eastern Europe and develop the Baltic regional energy market". The EU’s financial support to the Balticconnector comes from the Connecting Europe Facility program and corresponds to 75% of the needed funding. The pipeline will be constructed jointly by Baltic Connector Oy (Finland) and Elering AS (Estonia) and it will include Finnish onshore (22 km) and offshore (80 km) sections, as well as an Estonian onshore (50 km) one. The pipeline is expected to be operational by December 2019. Till 2020 a total of €5.35 billion is allocated to European priority projects under Connecting Europe. When completed, the projects will ensure significant benefits for at least two Member States, enhance security of supply, contribute to market integration and further competition as well as reduce CO2 emissions. Find the list of all projects receiving EU support under Connecting Europe. And see MEMO/15/5845 on ending the energy isolation in the Baltics. Furthermore, the Investment Plan for Europe (EFSI) has already boosted infrastructure investment in the energy sector. Web Address: https://ec.europa.eu/energy/

OIL & GAS

LOCAL PEOPLE A STEP CLOSER TO UNLOCKING UP TO A BILLION IN SHALE GAS REVENUES

People living in communities where shale development could take place are set to receive millions of pounds as the Financial Secretary to the Treasury, Jane Ellison, unveils plans for a Shale Wealth Fund (SWF), which could be worth of up to £1 billion in total, and pay out to communities over 25 years.

In what will be entirely new funding, up to 10% of tax revenues arising from shale gas production will be used for the benefit of people who live in areas which host shale sites and in a fresh development the consultation now includes the potential option for payments to be issued directly to households. The launch of the public consultation into the delivery methods and priorities for the SWF follows after government’s initial announcement of the fund in Autumn Statement 2015. The consultation explores how the SWF could include options to give more of the proceeds directly to residents, or have the revenues spent on local projects which boost skills and growth or road and rail infrastructure. It also discusses how local people could be involved in making spending decisions. The fund comes on top of the anticipated boost to the local economy arising from shale developments, and is in addition to the industry community benefits schemes that the shale industry has independently committed to. Jane Ellison, Financial Secretary to the Treasury said: “We are backing the safe development of shale gas because natural gas is absolutely vital to the economy, currently providing around one third of our energy supply. We’ve made safety and the environment our top priorities but we also want to ensure local people and communities see extra benefit, beyond the jobs and growth that the safe use of shale gas delivers. Baroness Neville-Rolfe, Energy Minister added: “Shale is a promising new industry that could bring financial benefit to individual households, create thousands of new jobs, and provide a secure lower carbon home grown energy source. “The combination of the boost to our economy and 50 years of safe regulation of oil and gas in the UK makes going for shale the right course of action. It is right that local communities should benefit from this new industry and that they should have a say in how such money can be put to best use.” Web Address: www.gov.uk

OIL & GAS

OFFSHORE SAFETY CONTINUES TO IMPROVE, SECTOR REPORT SHOWS

Personal safety performance across oil and gas operations on the UK Continental Shelf (UKCS) continued to improve in 2015, according to the 2016 Oil & Gas UK Health & Safety Report published on 1st August.

There were no reported fatalities and reportable injury rates for the offshore oil and gas industry – using a metric set by the regulator – were lower than other sectors such as manufacturing, construction, retail and education, says the report which details performance for last year. The lost time injury frequency rate on the UKCS was below the European average and lower than Norway, Denmark and Ireland. The category of dangerous occurrences – which captures oil and gas releases, fires or explosions, dropped objects and weather damage – was also down overall, recording almost a 30% fall between 2013 and 2015. Within that category, the total number of oil and gas releases rose slightly by 9%, with the majority of these classified as minor, while major releases remained the same.

“That picture of personal safety improvement was echoed in the smaller annual benchmarking exercise that we carry out ourselves. We looked at 28 production operators and found a continuing downward trend in the average frequency of reportable injuries and dangerous occurrences. “This favourable performance reflects well on the contributions from everyone involved – offshore and onshore – and their unstinting efforts to manage and control hazards and to continually improve safety performance. Safety critical maintenance has been – and will remain – a focus for industry. Reductions are now reported on backlog and we will be publishing guidance for industry on optimising maintenance shortly.

A rise in minor releases could partially reflect that more and more operators are using technology that helps detect the smallest of escapes. New reporting criteria also came into place in the second half of 2015 and now includes releases that were not deemed reportable under previous legislation. Hydrocarbon releases are a constant focus for industry which is committed to bringing these down.

“Hydrocarbon releases are also a perpetual focus for industry. We need to understand more about the slight rise in mainly minor releases to help redouble our efforts on driving these right down. This is a testing time for the industry and our commitment to safety has at times been questioned. However, our report demonstrates that safe operations continue to be intrinsic to how we go about our activities on the UK Continental Shelf, regardless of the oil price.

Industry has worked hard to reverse the increase in safety-critical maintenance backlog, reported in last year’s Oil & Gas UK Health & Safety Report. A reduction across all three categories of planned, corrective and deferred backlog is now reported.

“It shows that the UK sector is focusing in the right areas and overall is heading in the right direction. The report is also a reminder that there is no place for compromise or complacency and that safety must remain at the top of our agenda.”

Mick Borwell, health, safety and environment policy director at Oil & Gas UK, said: “I am pleased to say there were no reported fatalities on the UK Continental Shelf in 2015. Health and Safety Executive statistics in our report show that the industry non-fatal injury rate and the over-seven-day and specified injuries rates also decreased.

The Oil & Gas UK Health & Safety Report and an accompanying infographic can be downloaded at http://oilandgasuk.co.uk/healthandsafetyreport.cfm

Web Address: http://oilandgasuk.co.uk/

OIL & GAS

INFRASTRUCTURE & TECHNOLOGY

EU FUNDS A NEW 140 KM ELECTRICITY LINE IN BULGARIA

The Commission considers energy infrastructure projects in Bulgaria and its neighbouring member states a priority for the Energy Union. On 10 August 2016, the European Commission allocated €29.9 million to the construction of a new 140 km electricity line between Dobrudja and Burgas in Bulgaria.

By transmitting wind and photovoltaic energy, the power line will integrate renewables in the electricity market. The European support will also enhance the capacity of the Bulgarian electricity grid and strengthen its resilience. The electricity line is a ‘project of common interest’ and it belongs to the so-called 'Black Sea Corridor' project cluster: three electricity lines which will reinforce the electricity transmission corridor along the Romanian and Bulgarian coast, as well as between the rest of Europe and Turkey. The EU support in Bulgaria will contribute to reinforce security of electricity supply, integrate renewable energy in the electricity market, and to increase future power exchanges, in view of the expected wind power from Greece and photovoltaic energy from South Bulgaria. The European Commissioner for Climate Action and Energy Miguel Arias Cañete said: "The new Bulgarian line will increase the power exchanges in the area, and will allow the transmission of a new wave of clean energy from South-Eastern Europe. This in line with the Energy Union strategy, which aims at securing and integrating energy markets while ensuring sustainable energy for citizens and enterprises". The EU support to the new Bulgarian electricity line corresponds to 50% of the needed funding. The new electricity line will be constructed by the Bulgarian Transmission System Operator (TSO) Elektroenegrien Sistemen Operator EAD and it is expected to be operational by 2022. Till 2020 a total of €5.35 billion is allocated to European priority projects under the Connecting Europe Facility. When completed, the projects will ensure significant benefits for at least two Member States, enhance security of supply, contribute to market integration and further competition as well as reduce CO2 emissions. Find the list of all projects receiving EU support under Connecting Europe. Furthermore, the Investment Plan for Europe (EFSI) has already boosted infrastructure investment in the energy sector. Web Address: https://ec.europa.eu/energy/en

INFRASTRUCTURE & TECHNOLOGY

GERMAN MANUFACTURERS JOIN THE RACE FOR ELECTRIC VEHICLES

The race to electrify mobility took an important step forward with a series of announcements from German carmakers on new electric cars and trucks. This coincided with a strong signal from the European Commission, through its LowEmission Mobility Strategy, that electric vehicles, and not dieselpowered ones, have the principal role in decarbonising transport.

Dieselgate-blighted VW announced it planned to build 2 to 3 million all-electric cars a year by 2025 including 30 new e-vehicle models along with a commitment to quickly expand its new unit centering on ride hailing, car sharing and transport on-demand services. Meanwhile sister brand Audi also announced a similar target and three battery electric models by 2020, starting with the Q6 e-tron SUV in 2018 and followed by an electric compact car and a mid-range executive EV. More plug-in hybrid models are also intended in three to four years. Mercedes announced plans for four new electric models and may establish a new sub-brand for electric mobility, mimicking BMW i which currently comprises the i3 and i8 models. T&E’s Julia Hildermeier said: “The sudden rush of announcements on electric vehicles shows that the German automotive industry has finally woken up to the opportunity created by the rapid improvements in battery performance and decline in prices. The decision on new purchase grants for electric cars in Germany is not a coincidence. But the staggering pre-orders of the Tesla Model 3 has also alerted the companies to the threat posed by specialist manufacturers.” The trucking sector also joined the electric vehicle race with the opening of the first electric highway in Sweden using a Scania truck fitted with a pantograph, a system developed by Siemens. At the opening of its new Giga Factory, Tesla also announced it was developing an electric truck. Daimler also joined the race, for now with a prototype truck. Meanwhile the rapidly growing electric bus market was illustrated by BYD’s investment in a new manufacturing plant in Hungary that will also produce cars and fork lift

trucks. There were also rumours of a new battery plant being under consideration in the UK as a joint venture between Jaguar Land Rover, Ford and BMW. Julia Hildermeier added: “In the Low-Emission Mobility Strategy the European Commission signalled its interest in setting targets for manufacturers around 2025 in terms of both on-road efficiency improvements and sales of ultra-low carbon vehicles. This would also drive forward the choice of electric cars and vans, which is currently lacking, and would encourage demand.” T&E will be producing reports, to be released in October, on the progress being made towards electric vehicle market uptake in Europe and how to incentivise their supply. Web Address: www.transportenvironment.org

INFRASTRUCTURE & TECHNOLOGY

HAZZARD – UTILITY REGULATOR HAS A KEY ROLE TO PLAY IN DRIVING IMPROVEMENTS IN WATER AND SEWERAGE SERVICES

Infrastructure Minister Chris Hazzard met the Utility Regulator on 18th August to discuss the key role the Authority plays in regulating the water sector.

The Department for Infrastructure (DfI) has policy responsibility for water and sewerage services and is the sponsoring department for NI Water, meaning that it sets NI Water’s annual budget and approves its operating plan. The Utility Regulator regulates the amount of revenue NI Water needs, and therefore how much it can charge non domestic customers, to achieve targets and maintain and improve the service it delivers. Chris Hazzard said: “I welcome the Utility Regulator’s continued work with NI Water. The provision of high quality water and sewerage services is a vital component of our infrastructure and the Regulator plays a key role in this. “Every day NI Water delivers 560 million litres of high quality drinking water to almost 1.8 million people and safely disposes of 330 million litres of wastewater a day. This is a critical for public health and is part of the essential infrastructure required to support economic growth, protect our environment and provide good services for this generation and the next. “NI Water is to be congratulated on having exceptionally high levels of drinking water quality and wastewater compliance in the North. This has been achieved against a background of improved performance, efficiency, customer service and cost control. I have asked the Regulator to continue to work with all stakeholders to ensure that the water sector delivers the best possible outputs for the benefit of all.” Web Address: www.northernireland.gov.uk

INFRASTRUCTURE & TECHNOLOGY

WORLD FIRST AUCTION RESULTS SHOW ENERGY STORAGE IS READY TO DELIVER

The REA has in late August welcomed the outcome of the first National Grid auction for Enhanced Frequency Response (EFR) services. The auction provides National Grid with capacity that will help them balance the nation’s electricity system at times when it is under stress.

This outcome shows that new and low carbon flexible technologies can provide services traditionally provided by large, conventional plants. This kind of technical capacity has traditionally been provided by fossil fuel generation, and it enables the integration of more renewable energy, decarbonising the grid in line with the UK’s legally binding carbon targets. The auction has procured 200MW of capacity, that will keep voltage levels in the required range and help ‘keep the lights on’ in winters. Although 200 MW was initially announced to be the target procurement capacity, 1.4GW of capacity pre-accredited for the auction, showing the market is ready to deliver these services. National Grid has indicated that the auction will result in around £200 million in reduced costs. Commenting on the news, James Court, Head of Policy and External Affairs at the REA said; “The conclusion of the EFR auction shows that storage is now ready to deliver, and with the right framework can provide vital services to UK Plc. National Grid deserve credit for kickstarting this market and the Government must now follow through with its pledge to remove barriers to the industry. “In 2012 energy storage was identified as one of eight great industries the UK could lead the world in. The industry is starting to deliver on this promise, with the right support in place we can go even further. It is yet another example of new technologies that can provide alternatives to Hinkley for cost effective, low carbon electricity" Web Address: www.r-e-a.net

INFRASTRUCTURE & TECHNOLOGY

ENERGY EFFICIENCY

AUTOMOTIVE COATING TO GAIN FROM INCREASED DEMAND FOR ENERGY-EFFICIENT TECHNOLOGIES

Automotive original equipment manufacturers (OEMs) are concerned about the rising energy consumption at their paint shops and the resultant increase in carbon emissions. These environmental issues and OEMs’ desire to accelerate production cycle times have prompted automotive OEM coating suppliers to develop integrated coating processes such as those that do away with primer coatings. This drop in primer requirement will be offset by the amplified need for base coat to achieve superior performance and aesthetics.

Another important feature of environment-friendly vehicles is light weighting achieved through the greater use of plastic parts in automobile production. This translates to a new market for coating technologies that can seamlessly paint over plastic and metal substrates. However, the gradual replacement of metal parts with plastics and composite materials will dampen the demand for automotive OEM coatings on metal substrates. New analysis from Frost & Sullivan, Analysis of the North American and European Automotive OEM Coatings Market (http://frost.ly/pd), finds that the market earned revenues of $2.81 billion in 2015 and estimates this to reach $3.37 billion in 2022. During this period, the market is expected to register a compound annual growth rate (CAGR) of 3.3 % and 2.0 % in North America and Europe, respectively. “There is also a fast emerging market for safe and sustainable products due to the cap on the use of volatile organic compounds (VOCs) in coatings by the European Renewable Energy Directive and California Air Resources Board (CARB),” said Frost & Sullivan visionary science research analyst Vinay Venkatesan. “In response, coating OEMs are likely to develop non-polluting and high-performing water-borne, high-solids and powderbased coatings.” While the VOC regulations are implemented strictly in Europe, there is considerable variance in their enforcement across the East and West coast regions of the United States. As a result, North American OEMs

are reluctant to invest in new equipment that support sustainable technologies and continue to be heavily reliant on solvent-borne technologies. In both Europe and North America, automotive production is on the upswing. Coating OEMs are developing superior base coat products to make the most of this opportunity and the rising consumer demand for dynamic colours and sophisticated coating finishes. “The continuous evolution of automotive quality standards has had a knock-on effect on coating systems, resulting in improvements such as extreme stone chip resistance, etch and mar resistance and high corrosion protection,” noted Venkatesan. The automotive OEM coatings market is highly consolidated; leading participants such as PPG, BASF, and Axalta Coating Systems contribute to the majority of market shares in both Europe and America. As there are only a handful of global companies supplying to a largely fragmented automotive OEM market, customers have been very demanding in terms of cost efficiency and performance. Therefore, coating companies are working on diversifying their product portfolio to offer a wide array of products and services across all layers. This strategy will go a long way in enhancing market penetration in both regions. Web Address: www.frost.com

ENERGY EFFICIENCY

RESOURCE RECOVERY TECHNOLOGIES PROVE A WINNING INNOVATION IN THE WASTEWATER TREATMENT INDUSTRY

End users of wastewater treatment solutions have traditionally been technology-shy and prefer tried and tested solutions, mainly due to cost concerns. Technology developers are breaking through this barrier by offering resource recovery solutions that can help end users rapidly recoup their investments. The sector that will benefit the most from recovery technologies is the resource-heavy agriculture industry, as the water, energy, algae and nutrients recovered from wastewater will find significant application in this space.

New analysis from Frost & Sullivan, Innovations in Wastewater Treatment and Its Impact on Key Sectors (http://www.frost.com/sublib/display-report. do?id=D69D-01-00-00-00&src=PR), finds that innovations in wastewater treatment technologies are geared towards wastewater reuse and resource recovery. The three most popular technologies are advanced oxidation processes, membrane filtration and anaerobic digestion. “Wastewater resource recovery holds the potential to stoke cross-sector collaborations as well, since resources recovered from one sector can be used in another,” said TechVision senior industry Analyst Jennifer Tan. “Such collaborations reduce risks in any new endeavour and lower the resistance to innovations.” Meanwhile, rising environmental concerns about pollution and depleting water sources as well as the passing of strict regulations are providing considerable impetus to technology development. Regulations regarding wastewater discharge have become more stringent in recent years, especially with regard to effluents from power plants in the United States, and the pharmaceuticals industry, in general. The need to comply with regulations and standards is motivating industries to reduce effluents and reuse their wastewaters. Despite the cost advantage and tighter laws, lack of resources hinders technology developers in developing countries. In fact, only 8 % of the wastewater generated in low-income countries is treated. “Compliance with more stringent regulations often entails higher wastewater treatment costs, and developing countries may not have the resources to meet these higher effluent standards,” noted Tan. “Moreover, state-of-the-art technologies too may prove inadequate in terms of cost and energy savings.”

With continuous technology development, the industry will eventually be able to roll out affordable and highly efficient wastewater treatment systems. The looming water scarcity due to droughts and precipitation pattern changes due to climate change will accelerate the pace of innovation and acceptance. Innovations in Wastewater Treatment and Its Impact on Key Sectors, part of the TechVision subscription, presents an overview of the emerging and potential technologies that will meet the rising need for customised, modular and comprehensive solutions. The research gives an overview of key industry sectors, challenges and opportunities in each sector, innovation landscape and a technology roadmap until 2020. Details of important patents and industry participants are included. 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 the firm’s 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_D69D_28Jul16

ENERGY EFFICIENCY

Technavio analysts forecast the global industrial turbocharger market to grow at a CAGR of more than 4% during the forecast period, according to their latest report. The research study covers the present scenario and growth prospects of the global industrial turbocharger market for 2016-2020.

STRINGENT EMISSION REGULATIONS AND NEED FOR FUEL EFFICIENCY TO CREATE OPPORTUNITIES FOR THE GLOBAL INDUSTRIAL TURBOCHARGER MARKET THROUGH 2020, REPORTS TECHNAVIO

The Frost & Sullivan report also lists mining and construction equipment, agricultural equipment, power, oil and gas, and marine as the five major end-user segments where the first two segments accounted for almost 73% of the market share. The oil and gas segment accounted for approximately 13% of the market share while the power and marine segments accounted for the remaining 11% and 3% respectively. Governments worldwide are wary of environmental pollution caused by various industrial activities. Various greenhouse gas emission laws are enforced by governments and standalone agencies that need to be adhered by all industries. Emission laws, such as Industrial Emission Directive 2010/75/ EU (European Union), Canadian Protection Agency Act and Bharat Stage Emission Standards, are some of the common laws enforced to control carbon emissions. “Adherence to such regulations is driving the adoption of industrial turbochargers as the technology reuses exhaust gases, limiting carbon emissions from diesel engines,” says Bharath Kanniappan, a lead analyst at Technavio for automation research. Technavio industrial automation analysts highlight the following three factors that are contributing to the growth of the global industrial turbocharger market: • Stringent emission regulations; • Increased demand for efficient fuel usage; • Energy recovery and cost benefits; • Stringent emission regulations. Emission standards and regulations are designed to maintain human health, protect the environment, and ensure efficient use of resources. Governments across the world have drafted emission regulation acts which mandate the use of efficient technologies, such as industrial turbochargers, to minimise air emissions.

Diesel engines emit several toxic gases such as sulphur dioxide, nitric oxide, and greenhouse gases like carbon dioxide and carbon monoxide via exhaust gas. Industrial turbochargers redirect the same for further combustion and significantly reduce their release into the atmosphere. It is estimated that nearly 60% of nitric oxide emissions will be reduced with the use of industrial turbochargers. As regulations have become more stringent, most endusers have started adopting solutions such as industrial turbochargers, which is positively impacting the market. Increased demand for efficient fuel usage Despite the wide availability and popularity of renewable sources of energy, fossil fuels like gasoline and diesel continue to dominate the market. The US, China, and Russia are some of the leading producers and utilisers of world energy. The Institute of Energy Research has calculated more than 3.5% increase in global energy usage in 2015 as compared to 2014. With the current rate of consumption of fossil fuels, it has been estimated by 2015 BP statistical review of world energy that the proved reserves of coal will be depleted in 113 years, natural gas by 2069, and crude oil by 2067. Hence, G7 countries (Japan, the US, Germany, the UK, France, Italy, and Canada) are trying to gradually decrease the use of fossil fuels. Energy consumption is now strictly regulated across all industries by stringent international guidelines. ISO 14001: 2004 is a global regulatory standard, which dictates specifications for environment management by reduction of waste and optimum use of fuel resources. It encourages the incorporation of technologies to make machine processing and functioning more efficient and cost effective. It also keeps the best interest of the environment in mind. Vendors, such as ABB, Honeywell, Mitsubishi, and Napier among others are competing for recognition by this international regulatory body for favourable impression on end-users.

ENERGY EFFICIENCY

Similarly, industrial turbocharger service providers and distributors, such as Alamo and Turbodynamics, are making efforts to obtain ISO accreditation BS EN ISO 9001: 2008, which is an international set of guidelines that ensure customer service and satisfaction by providing enhancements and upgrades to optimise fuel usage. Energy recovery and cost benefits Industrial turbochargers are among the most popular examples of energy recovery systems as they redirect exhaust gas for combustion and energy generation unlike naturally aspirated systems where it gets wasted. Hence, they enable the end-user to achieve energy efficiency. Unlike automotive turbos, industrial turbos are relatively larger in size and can direct larger amounts of exhaust gas and generate significantly higher energy and power. Most industrial turbochargers reduce energy consumption by 20%-30%. It is estimated that the use of industrial turbochargers can save up to $1 billion in energy costs annually. Retrofit case studies have proven energy recovery of more than 45% after adopting industrial turbochargers with the return of investments within 18 months. For instance, the adoption of AT turbocharger at the Udupi thermal power plant, India, resulted in an annual 8,750,000 kilowatt-hour (kWh) of energy saved, which maximised overall profit to a significant extent. â&#x20AC;&#x153;Due to the current fluctuating scenario on fuel and emphasis on energy consumption, energy recovery strategies are becoming popular, which act as a major driver for the industrial turbocharger market during the forecast period,â&#x20AC;? says Bharath. Web Address: www.technavio.com

DEALS

MUELLER, INC. OUTSOURCES FLEET MANAGEMENT FOR FIRST TIME, SELECTS RYDER FOR ONE-STOP SHOP IN LEASING AND MAINTENANCE

Ryder System, Inc., a leader in commercial fleet management, dedicated transportation, and supply chain solutions, on 31st August announced that Mueller, Inc. – a leading manufacturer of preengineered metal buildings and metal roofing products – has selected Ryder as its full service lease provider for a total of 26 vehicles.

In its 85-year history, this is the first time Mueller elects to outsource its fleet management. With Ryder ChoiceLease Full Service, Ryder acquires vehicles according to the customer’s specifications, provides financing, bumper-to-bumper maintenance, and fleet support services, and then manages vehicle disposal to protect customers from residual risk.

individual managers to ensure that each vehicle was getting serviced. This resulted in varying, sometimes outrageous, maintenance rates across states, as well as inconsistencies around the maintenance of the vehicles. “Internally, it was difficult to track which trucks were getting maintained when,” said Mueller CFO Phillip Arp. “With safety regulations growing more and more stringent, we look to Ryder as a one-stop shop for managing our maintenance records, ensuring preventive maintenance gets done, advising us as to which trucks are costing us more money, and handling our vehicle trade-ins.”

“Ryder is happy to partner with an industry leader like Mueller that has more than 80 years of expertise in metals manufacturing,” said Dennis Cooke. “We are eager to bring them best-in-class leasing and maintenance services, equipped with the best technicians in the industry and a network of more than 800 owned and operated service locations.”

Mr. Arp acknowledges that by outsourcing, Mueller will be able to assess their transportation needs, while saving time and energy. By leasing with Ryder, he said that the company will now have access to data that it did not have before. This data will enable them to identify the total cost of ownership of their fleet’s remaining vehicles, which they plan to transition incrementally.

With 33 branch locations in Texas, New Mexico, Louisiana, and Oklahoma, as well as four owned and operated manufacturing facilities, Mueller needed to bring the full focus back to their business. The company is able to achieve just that by shifting its fleet management responsibilities to a trusted third party provider like Ryder. Up until Mueller made the decision to outsource, it had been up to its branch locations’

To learn more, visit http://ryder.com/solutions/fleetleasing

DEALS

ZEDRA APPOINTS ASSOCIATE DIRECTOR OF MARINE AND AVIATION

ZEDRA, global independent specialist in trust, corporate and fund services, in mid-August appointed Andrew Wilson as Associate Director of Marine and Aviation, bringing over 20 years’ experience from the aviation, marine, accountancy and finance industry.

Based in the Isle of Man office, Andrew’s appointment follows ZEDRAs continued strategy of significant investment in expanding its range of fiduciary services to both existing and new clients across a growing number of jurisdictions, Andrew will be focusing on the development and growth of a Marine and Aviation global division for ZEDRA, to strengthen existing operations and expand core business opportunities.

Alan Patrick, managing director of ZEDRA (Isle of Man) commented: “Having previously worked for an expanding multi jurisdiction corporate service provider and with broad knowledge and practical application of offshore and EU legislation, as well as most favourable importation routes for yachts and aircraft, Andrew’s background will add great value to our client portfolio. We look forward to offering his expertise and enabling our clients to benefit from his skill set.”

Previously working for the Equiom Group, he provided valuable support for marine and aviation new business and tax compliance. Having trained with a firm of Chartered Certified Accountants in the UK, moving to the Isle of Man and training with the Institute of Indirect Taxation in VAT compliance, then graduating with the Institute of Export in World Customs Compliance, Andrew has a strong established reputation within the industry.

For further information, please visit www.zedra.com

Andrew Wilson, associate director of marine and aviation, ZEDRA (Isle of Man) commented: “The Isle of Man has a great reputation globally, built upon worldclass expertise in the marine and aviation industry. There are very well established yacht and aircraft registries in the region that support owners and corporate service providers, making it a significant focus for us going forward.” “As ZEDRA is already positioned in a number of key jurisdictions suitable for marine and aviation structuring, including Cayman Islands, Isle of Man, Hong Kong, Jersey, Guernsey, Netherlands, Singapore, and Switzerland; and with plans for further expansion, I look forward to settling into the ZEDRA team to help continue to add to this offering.”

DEALS

ELECLINK: GROUPE EUROTUNNEL TAKES CONTROL OF STRATEGIC INFRASTRUCTURE

Groupe Eurotunnel on 23rd August completed the acquisition of Star Capital’s 51% holding in ElecLink for €75 million, equivalent to a value of €147 million for 100% of the capital of the company.

ElecLink will build and operate a 1,000MW high-voltage electricity interconnector between the United Kingdom and France. Construction of the €500m+ project must start before 31 July 2017 and the interconnector must start operating before 31 July 2020. Steven Moore has been confirmed in the role of Chief Executive Officer.

Jacques Gounon, chairman and CEO of Groupe Eurotunnel stated: "By investing in an infrastructure for the transport and exchange of electricity, Eurotunnel is using its expertise in regulated environments to reinforce its long-term strategy based on recurrent and predictable returns for value creation".

In the context of energy transition and the risks of domestic electricity generation not meeting demand in the future, the United Kingdom and France will be able to benefit from greater security and flexibility of energy supply.

Under the terms of the 25-year exemption granted to ElecLink by the national regulatory authorities, the group will shortly hold an auction for part of the capacity of the new cable, which will then enable the financing of the project to be put in place without impacting the Group’s credit rating. Web Address: www.eurotunnelgroup.com

DEALS

MATADOR RESOURCES COMPANY ANNOUNCES STARTUP OF RUSTLER BREAKS CRYOGENIC NATURAL GAS PROCESSING PLANT

Matador Resources Company in late August announced the successful start-up last week of the Black River cryogenic natural gas processing plant Matador built in its Rustler Breaks prospect area in the Delaware Basin of Eddy County, New Mexico.

The Black River processing plant has an inlet capacity of approximately 60 million cubic feet of natural gas per day, which is almost twice the size of the previous cryogenic processing plant Matador built in its Wolf prospect area and subsequently sold to an affiliate of EnLink Midstream, LLC. This new plant will support Matador’s ongoing and future development efforts at Rustler Breaks.

plant provides Matador with priority one takeaway and processing for our Rustler Breaks natural gas production and should also provide additional income through the processing of third-party natural gas. As a result of the strong execution of our midstream team, we believe we have generated significant value for our shareholders. These efforts include ensuring adequate firm takeaway capacity for our natural gas production in the Rustler Breaks prospect area and continuing to operate the salt water disposal assets and the three separate pipeline systems, which we retained in Wolf and which gather oil, natural gas, and water for our growing production in the area.”

Matador has also completed the installation and testing of a 12-inch natural gas gathering line running throughout the length of its Rustler Breaks acreage position, and this natural gas gathering line is now operational and being used to gather much of Matador’s natural gas production at Rustler Breaks.

Please direct any commercial inquiries about the Rustler Breaks natural gas processing plant and related gathering and processing services provided in the Rustler Breaks area to Matt Spicer on +1 (972) 371-5200 or midstream@matadorresources.com.

Mr. Joseph Wm. Foran, chairman and chief executive officer of Matador, said, “We are excited to announce we have successfully brought the Black River cryogenic processing plant online both on time and on budget. The

DEALS

GUIDON ENERGY AND BLACKSTONE ENERGY PARTNERS ANNOUNCE A NEW PERMIAN BASIN PLATFORM AND FIRST ASSET ACQUISITION

Guidon Energy, an oil and gas partnership headquartered in Dallas, Texas, and Blackstone Energy Partners, an affiliate of Blackstone recently announced their recently formed platform company in the Midland Basin and purchase in April of this year of approximately 22,000 gross acres (16,000 net acres) in the core of Martin County, Texas.

Blackstone Energy Partners and funds affiliated with Blackstone, a leading global, alternative investment manager and energy investor, have committed approximately $500mm of capital to Guidon with the potential to commit significantly more with future acquisitions. Blackstone and Jay Still formed Guidon in 1Q 2016 with the intent of building a significant, independent shale development company focused on the Midland Basin.

a premier North American liquids-rich play, which was signed in the second quarter of this year and has subsequently closed.” Angelo Acconcia, a senior managing director of Blackstone Energy Partners who oversees their oil and gas investments, said, “We look forward to building upon our partnership with Guidon Energy through this acquisition and to continue to grow through future partnerships, joint ventures and acquisitions. Guidon Energy is illustrative of our focus on recruiting and aligning ourselves with best-in-class management teams who have significant operating experience and an impressive technical track record. Jay is an incredibly talented operator and manager. He and his team are uniquely positioned to contribute significant operational expertise to these assets as well as to future opportunities in the Midland Basin, as they have successfully led multiple unconventional oil and gas development programs in the U.S., and specifically in the Midland Basin, over the course of their careers.”

The firm’sobjective is to optimally develop its leasehold through manufacturing styled horizontal well development. By capitalising on the team’s unique operational excellence, track record and capital resources, Guidon expects to continue to grow its acreage position and to drive best-in-class well results while maintaining a strong health, safety and environmental track record. Guidon is led by Jay Still, who previously held senior executive positions with both Pioneer Natural Resources and Laredo Petroleum, and a team of veteran oil and gas executives with significant operational experience across a range of basins in North America and who have a long track record of best-in-class operations, optimising well costs, recovery factors and production growth in an environmentally responsible manner. Jay Still, President and chief executive officer of Guidon Energy, said, “We are very excited about our partnership with Blackstone Energy Partners. Blackstone’s successful and deep track record of investing in energy and in the oil and gas sector specifically, and its extensive industry relationships, in combination with the Guidon team’s operational capabilities and experience, will allow us to continue to optimally develop our properties and to be a long-term partner of choice in the Midland Basin. We are very pleased to have acquired a significant, strategic, and top-tier position in the core of the Midland Basin,

DEALS

BLACKSTONE ENERGY PARTNERS AND JETTA FORM PURE PLAY DELAWARE BASIN ACQUISITION PARTNERSHIP – JETTA PERMIAN, LP

Blackstone in late August announced the formation of Jetta Permian, LP (‘Jetta Permian’), a partnership between an affiliate of Jetta Operating Company, Inc. (‘Jetta’) headquartered in Fort Worth, Texas and funds managed by Blackstone Energy Partners L.P. (‘Blackstone’). Jetta Permian will target assets and leasehold in the Delaware Basin located in West Texas and southern New Mexico with $1.0 billion of capital committed from Blackstone and Jetta’s partners.

A commitment of this scale, and flexibility combined with Jetta’s deep technical expertise and a long-term focus on best-in-class operations and results enables and differentiates Jetta Permian to pursue creative and unique opportunities of scale within the Delaware basin. Jetta’s strategy includes pursuing asset and leasehold acquisition opportunities, farm-in transactions and partnerships or joint ventures with existing operators and landowners.

of an institution like Blackstone with its broad financial resources, reputation of excellence and oil and gas track record. The teams assembled to work on this partnership are exceptional. We look forward to the challenges ahead and to applying our technical passion, experience, and diligence into creating a pure play Delaware Basin platform.”

Angelo Acconcia, a senior managing director with Blackstone who oversees their investments in the oil and gas sector, said, “We are excited to partner with Greg and the Jetta team to launch this new platform in the Delaware Basin. It is a great example of our focus on aligning ourselves with best-in-class teams, and providing them with significant long-term, patient and flexible capital to effectuate a focused and unique business plan. We have known the Jetta team for a number of years, and have come to respect them as top-tier operators with a unique local presence in the Delaware Basin. We believe that Jetta Permian is well positioned to become one of the leading Delaware Basin pure-play companies and a partner of choice for those that are looking for someone to provide additional capital and operational resources to optimally develop their assets and / or leasehold.” Greg Bird, CEO and president of the general partner of Jetta Permian and the President and owner of Jetta, said, “With a $1.0 billion equity commitment and with the collective resources of the Blackstone team to support the partnership, coupled with the Jetta team’s operating capabilities and track record, this will allow for and enable the strategic and successful acquisition and development of high quality oil and gas assets in the Delaware Basin. Jetta is excited to have the confidence