Cnews42 english version

CPL CONCORDIA Group Newsletter

42

Postal subscription with special rates for periodicals issued more than twice a year and no more than 70% advertising content. Business Sales Management Department. Modena

n.

Year XI - Issue n.3 september 2013

Green energy from wood

CPL presents Synfon, a high-efficiency pyrogasification system powered by dry wood chips.

With its innovative housing design, Synfon is a ‘plug and play’ product that is totally unique in the market

MULTILINGUAL MEMBERS’ MEETING REFLECTS CPL’S GLOBAL APPROACH The 1,000 guests that attended the annual general meeting to approve the financial statements included numerous foreign delegations, from countries ranging from the U.S. to Poland MUSIC FOR REBIRTH Riccardo Muti embraces the earthquake-struck Emilia region at the Concerto dell’Amicizia (Concert for Friendship) held in Mirandola (Modena), with the support of CPL CONCORDIA

Italian news agency ANSA in New York reports CPL’s debut in the US

In his interview with Dario Gristina, managing director of CPL CONCORDIA USA, Fabio Russomando explores how the company earned itself the contract with the Empire State Building and development prospects in the United States.

In April 2013, CPL CONCORDIA Group joi-

holds management agreements with 40

CORDIA USA in New York, one particularly

ned the U.S. market with some major ac-

tall buildings for activities including plant

renowned skyscraper stands out, namely

quisitions under its belt via subsidiary CPL

engineering and maintenance, metering,

the Empire State Building. This agreement

CONCORDIA USA. The new company, whi-

engineering and technical services, mo-

was the issue at the heart of ANSA New

ch is 50% owned by a US partner, current-

nitoring, and billing. Among the various

York interview with Dario Gristina, mana-

ly employs 21 staff members and already

major constructions served by CPL CON-

ging director of CPL CONCORDIA USA. Forecasts for the U.S. market for CPL Group indicate a turnover of over $50 million over the next five years.

Watch the interview with Dario Gristina, CEO of CPL CONCORDIA USA

CPL CONCORDIA is associated with

Editor-in-chief FRANCESCO MANICARDI

The quarterly newsletter brought to you by CPL CONCORDIA Group Year XI - Issue n. 3 September 2013 Registered with the Court of Modena on 26.05.2003 under n. 1673

Editors GABRIELE BATTISTI SAURO CORSI MARCO DAL DOSSO MARIO GUARNIERI EMANUELE MALAVASI E-mail: redazione@cpl.it Design and Layout Gabriele Greco - Ufficio Comunicazione CPL CONCORDIA Marco Maini - KINA SNC

CNews online - http://en.cpl.it/cnews

Get free access to C-News contents from the CPL Concordia website by downloading the QR Code Reader!

Partner

Have contributed to this issue: ANDREA AMBROGI PIERLUIGI CAPELLI MARCO CARAVELLA SARA CAVAZZA ROBERTO CIARROCCHI MARCO DAL DOSSO VINCENZO D’ALò RENZO GOVONI MASSIMO GRASSILLI GABRIELE GRECO LUIGI LATERZA ALFREDO LUPI VITO MORAMARCO VITTORIO NERI GIOVANNI PEPE MARCO PULEGA FABIO SERENI GIOACCHINO SISTI ANDREA TASSONI

ALESSIO VACCARI Published by CPL CONCORDIA Soc. Coop.

Via A. Grandi, 39 41033 Concordia s/Secchia (MO) Tel. 0535.616.111 Fax 0535.616.300 Website: www.cpl.it Mail: info@cpl.it Cover page: The pyrolytic gasifier for the production of energy from virgin wood chips built at the CPL facility in Sant’Omero (Teramo).

The photos of the Concerto dell’Amicizia concert have been used with the kind permission of Maurizio Montanari.

Leading article

Growth plus diversification... equals success Corporate development leads to an increasing number of challenges in contract procurement, which means we have to become ever-more attentive to ways of improving energy efficiency and water resource management.

Andrea Ambrogi -

I feel they are traits that should evolve within the DNA of all those involved in business. A team of people with competence can devise and plan out a job, their capability enables the team to put the plans into practice, and their reliability means that any service, product, or work can be replicated successfully.

I wouldn’t be exaggerating if I said that this combination of qualities has always been the driving force behind our cooperative, alongside the trinity championed by our chairman Roberto Casari, i.e. innovation, scale, and globalisation.

With these thoughts in mind, I’d like to look at the socioeconomic dynamics of the past three years and attempt to rationalise, for example, the dramatic reduction in margins we have had to endure as regards our construction work and management and maintenance activities. Given the situation, it is thanks only to our commitment to these six values that our financial statements are such an achievement.

The policies of the government led by Mario Monti, aimed at reducing and stabilising public debt, had a beneficial impact in terms of primary surplus, but at the same time, the Italian economy has slowed down due to falling demand (although hopefully only in the short term). The way in which our country is structured has been acknowledged by several awards from European and international institutions, but we have paid the price of our economy’s striking inability to grow, which is at risk of becoming structural.

The road towards internationalisation, embarked upon by CPL some time ago, has long become part of our strategy. Our operations are finally appropriate for the global scale, and last

aambrogi@cpl.it

Sales Manager Italy, CPL CONCORDIA

Given my role as sales manager for Italy (an exciting opportunity which I’d like to thank the management and the cooperative for giving me), the questions I’m most often asked are about market trends, our relationships with the competition and the various consortia, and the current payments situation.

When answering, I usually try to start with general concepts and on several occasions recently I have found myself drawing inspiration from a newspaper article I had read about competence, capability, and reliability. I think that these three words are especially significant where our cooperative is concerned and, in recent months, have quoted them repeatedly.

3

CNews n. 42 - september 2013

but not least, we are concentrating considerably on innovation and research, through the acquisition of patents. These are merits that are rewarded in today’s market, the ability to diversify being appreciated above all. At CPL, the level of diversity is gratifying. Sometimes, even we find it hard to provide a concise explanation of what CPL does, but the multifaceted nature of the cooperative actually allows us a better understanding of these difficult times.

For this and other reasons, we have recently begun working, independently, on the procurement of contracts from Europe’s largest awarding authority, CONSIP. The company, run by the Italian Ministry of Economy and Finance, provides advice, assistance, and support to local authorities concerning purchases of goods and services.

This approach has already led to an initial positive result.

Working with Consorzio Cooperative Costruzioni (CCC) as part a temporary consortium, CPL CONCORDIA ranked first in the Campania section for the SIE 3 (integrated energy service) procedure. The call for tender was met with 70 bids, of which

just 12 stood a chance of earning themselves the contract. At the same time, we are participating (again through CONSIP) in the tender for a public lighting service management contract and, again, despite the high level of competition, we are confident that we can meet the challenges that this authority has set for us.

In the near future we will step up our focus on improving efficiency and saving energy, as well as optimising management of water resources. These are the issues we have to address, building our capacity to compete based on our innate reliability and expertise. We are positive that the market will appreciate our commitment and, if we can go on improving, we’ll be able to face these harsh times with a wry smile.

CNews n. 42 September 2013

In this issue

BUSINESS AREA 06

SYNFON - new power from wood biomass

09

Energy from virgin wood chips

10

Update from Wroclav

12

CPL lends quality to gas in Edison stores

14

Mattinata welcomes in new power

17

Less than two hours between shutdown and resumption

18

Germany, the creation of Gas Energy Solutions

20

Coop Cartai energy consumption figures read every quarter of an hour

22

Aipower products for the Algerian Oil & Gas market

24

New supervisory system for purification plant at Alto Vicentino Servizi

26

Heating and clean power with ‘Energia Plus’

28

Maintenance brings new shine to panels

MARKETING 30

Digestion methods on the rise

BUSINESS NEWS 32

Multilingual meeting reflects CPL’s global approach

35

Many nations, one internationalisation project

36

€635 million target for CPL Group for 2015

CSR

5

38

Sustainability, the driving force behind the creation of shared value

41

Legality rating for CPL

42

Riccardo Muti embraces earthquake-struck Emilia region

CNews n. 42 - september 2013

SYNFON - new power from wood biomass

A 45 kWe pyrolytic gasification system, designed and assembled by CPL for the gasification of dry wood chips. A constant, reliable source of electricity and heat for forestry, sawmills, livestock breeders, farms, greenhouses, holiday farms, and district heating.

Alfredo Lupi -

alupi@cpl.it

Sant’Omero Adriatica Area Manager

S

YNFON is a high-efficiency, integrated plant, designed and assembled by CPL CONCORDIA, which produces synthetic gas continuously from the pyrolysis of wood biomass and uses the same gas to power a cogenerator for the production of electricity and heat. The CPL system has been optimised and tested to achieve the highest levels of energy efficiency, through a sophisticated calibration procedure and specific computerised management of the entire process.

The strength of this product lies unquestionably in the housing that contains the system (CHP/gasifier/dryer), which makes Synfon a ‘plug and play’ product that is totally unique in the market. Synfon meets a range of power production needs, using wood chips to provide a constant, reliable source of electricity and heat for forestry, sawmills, livestock breeders, farms, greenhouses, holiday farms, and district heating. SYNFON is a totally new product that we are preparing to introduce to the Italian and international markets. The launch is scheduled for 6th November, at Chile’s Expocorma fair in Santiago.

F

or several years now, CPL CONCORDIA has been focussing its attention on the production of electricity from renewable sources, including solar power, biogas, and geothermal energy.

Now, the cooperative has turned its attention to gasification from wood (wood being simply a natural form of solar energy,

accumulated through photosynthesis). Gasification as a process was originally developed in the nineteenth century to supply town gas for lighting and cooking. In these uses, it went on to be replaced by natural gas and electricity, but the gasification process has been used for the production of synthetic chemicals and fuels since 1920.

Wood-powered gas generators - called gasifiers - were used to provide power for motor vehicles in Europe during the fuel shortages of the second world war.

Pyrolytic gasification plants are used for the production of gas through pyrolysis (a process in which the wood chips are superheated) and, at the same time, the gas is used to power a CHP plant with a combustion engine for the production of electricity (to be fed into the grid) and hot water (for use in the production cycle).

Gasification is a process by which carbon-rich materials, such as biomasses, are converted into carbon monoxide, hydrogen, and other gaseous compounds. This process takes place at temperatures above 700 °C, in the presence of a controlled percentage of an oxidising agent (usually air or steam). The resulting gaseous mixture is known as syngas (from ‘synthetic gas’), which is a fuel. Gasification offers certain advantages over direct combustion, the most important being the possibility of burning the syngas directly in internal combustion engines.

The reactor is the heart of the system, as it is here that a thermochemical process converts the wood into syngas. At about 200 °C, the pyrolysis phase begins, during which the wood disintegrates and turns into gas; next, the gas (together

THE CREATION OF SYNGAS

Preliminary stage: wood chips Stage 1: storage / drying Stage 2: loading Stage 3: pyrolysis Stage 4: gas cooling and filtration Stage 5: generator (engine power supply, generation of electricity)

7

with the charcoal) flows through the oxidation section, where air is injected via flow control nozzles so that the most part of the charcoal is burnt, at 1200 째C. During the combustion phase, the charcoal turns into carbon dioxide, which then combines with the water vapour released from the moisture in the wood. This union produces carbon monoxide and hydrogen. The syngas, ash, and charcoal leave the reactor at 800 째C via the lower area and together they flow to a heat exchanger, where the gas is cooled to about 130 째C.

DRYING

Gasification produces a very clean gas as the elements which could be problematic during combustion (such as chlorine and potassium) are removed through the production of ash. The engine is a coaxial model with an electric generator, which converts mechanical energy into electricity that is then fed into the grid.

The heat from the cooling system is used to dry the wood chips and can also be put to a variety of different uses, including household hot water and district heating, among others.

GASIFICATION

FILTRATION

COGENERATION

Air

Ash

SYNGAS

ENGINE

SYNGAS

FILTER

WOOD CHIPS

REACTOR

ELECTRICITY

HEAT

FOCUS ON

Energy from virgin wood chips The system is type-approved for the use of G30-G50 sized virgin wood chips with a maximum moisture content of 15% and a maximum fine particle content of 30%.

The wood chips are transported from the dryers to the loader via a screwfeeding system and the whole process is controlled by solenoid valves that ensure the system is air-tight.

These valves are, in turn, piloted by a PLC and are automatically closed in the event of a power failure.

For some months now, CPL CONCORDIA has been running a 45 kWe pyrolytic gasification system, for the gasification of dry wood chips.

All the equipment is housed in special prefabricated casings featuring steel structures and sandwich panelling, while the wood chips are stored in special containers with a hot air drying system.

The CHP system is powered by the combustion of 45 kg/hour of dry wood chips with a moisture level below 10%.

One important feature of the system built is the simultaneous execution of multiple technologies. Just as with musical instruments, the result can only be appreciated when the orchestra performs as one.

The tested and approved pyrogasification system at the CPL CONCORDIA facility in Sant’Omero (Teramo).

Watch the case history of the pyrolytic gasifier

Update from Wroclav

As of October, the JokaCPL natural gas CHP will be powering Poland’s industrial city of Wroclav, in an example of engineering and construction embodying Italian and Polish expertise.

The 18 MW cogeneration plant (foreground) serving the EDF thermal power plant (brick building).

The heart of the system is a GE Jenbacher engine.

Renzo Govoni -

rgovoni@cpl.it

Project Manager

I

t was in December 2012, in issue n. 39 of this magazine, that we announced CPL CONCORDIA’s first foray into Polish soil.

We’ve come a long way since then, when our premises had just become operational and we were in the preliminary stages of the design of a cogeneration plant commissioned to us by the French multinational company EDF. Work began in January 2013, while the deadline for the construction of the plant was scheduled for late August to allow it to be commissioned in September and fully operational in October.

The plant, based on a GE Jenbacher brand gas powered engine, produces 2677 kWe (which is fed almost entirely into the Polish national grid) and almost 2600 kWt, which is completely absorbed every day of the year by the district heating grid for the Psie Pole area in the city of Wroclaw (Breslau), one of the country’s most thriving industrial and service centres.

The plant interacts with a thermal power station that produces around 18 MWt, which it can replace entirely during the summer months and partially for much of the remainder of the year, offering significant benefits in terms of both overall primary energy consumption and the emission of pollutants into the atmosphere.

Despite the difficult impact of working in very different circumstances from usual, the construction of the plant in compliance with the terms of agreement is almost finished and all the preliminary checks required prior to the plant’s switch-on have been carried out. The entire design process was handled by our company, with Lorenzo Bigliardi working on layout and CAD 3D modelling, Mauro Pascutti looking after electromechanical engineering, and newcomer to CPL Polska Kamil Lizon heavily

involved, not only in the electrical engineering and automation, but also in the delicate mediation and dialogue phases with local authorities and subcontractors.

Equally important was the specialist advice on natural gas cogeneration and the review work carried out on our project by Polish engineering company AM Trading.

This enabled us to adapt the design in the areas where local law differs from European legislation. The whole civil engineering design and construction works were handled directly by Joka Group zo.o, our partner in this venture and in the newly formed Joka CPL Polska.

For the mechanical and electrical engineering and all the inspection and testing work, we chose to use local companies, with a view to building loyalty and establishing a network of reliable suppliers for the rest of our business in Poland.

So now we have reached the delicate stage of start-up and postconstruction reporting. Before we can switch on, we are waiting for the local electricity provider to adapt its main substation to allow the electricity we produce to be fed into, metered, and distributed via the Polish national grid. The plant should be up and running by October 2013, so that our contribution to the district heating is ready for the coming winter.

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CNews n. 42 - september 2013

CPL lends quality to gas in Edison stores Three glycol injection plants set up for gas from the deposits in San Potito and Cotignola in Ravenna. Experience in the field of gas odorants allows development of system meeting safety and reliability criteria.

Marco Caravella -

mcaravella@cpl.it

Natural Gas Division design engineer Vittorio Neri -

vneri@cpl.it

Project manager, Natural Gas Division

G

as storage is a process by which natural gas taken from the transportation network is injected into the porous rock of a depleted deposit in order to store it in underground structures ready to be fed back into the national grid according to market demands.

While the supply of gas is pretty much constant throughout the year, demand is subject to seasonal variability, mainly due to use for household heating.

That is why the natural gas storage system is used, in order to reconcile the constant flow mechanism with the need for modulation imposed by demand.

With this storage system, the supply of gas is always guaranteed in the event of faults or cut-offs in the system with which the fuel is imported from abroad.

In 1984, Edison gave the go-ahead for storage at its first concession located in Abruzzo, to which a second facility was added, about ten years later, in Veneto. Established in 2004, Edison Stoccaggio S.p.A is the Edison Group company dedicated to natural gas storage and transportation activities.

In June 2010, Edison Stoccaggio S.p.A. began work on the development of the concession and the deposits in San Potito

and Cotignola, in the province of Ravenna.

A storage station contains all the machines and equipment necessary to process and monitor the injection of natural gas from the transportation system into the underground deposits and also to feed the gas required into the transportation network.

The main form of processing that the gas undergoes in the storage station is the removal of the water originating from the surrounding rock formations.

This process ensures that the gas reaches the required quality specifications before it goes into the pipeline.

The water associated with the gas is absorbed simply through physical contact between the damp gas and glycol, an organic compound widely used as coolant for car radiators.

CPL CONCORDIA has designed, manufactured, installed, and put into use three glycol injection plants in the San Potito and Cotignola sites, located in the three well clusters that cover the entire area of the Edison deposit.

Years of experience in the injection of odorants into distribution networks have helped us at CPL to develop a system designed to ensure the controlled delivery of glycol to the storage facilities, in compliance with the safety and reliability criteria imposed by both regulations and the customer.

The natural gas division aims to differentiate the demand for gas processing products, broadening its range of offerings to include a variety of substances and creating specific injection systems for differentiated chemicals.

THE FIRST GAS STORE

The world’s first gas store was built in the United States in 1915. In Italy, meanwhile, the first plant was built in 1964. Located in Cortemaggiore, in the Emilia-Romagna region, it was also among the first to exist in Europe. Nowadays, there are 10 natural gas storage fields in Italy, and they are located in the Abruzzo, Emilia Romagna, Lombardy, and Veneto regions.

13

Mattinata welcomes in new power Savings of 68% thanks to new LED street lighting in the city of Foggia. While Foggia has always been a renowned resort destination, now it has even more to offer visitors in the form of attractively lit historical buildings and free-access Wi-Fi hotspots.

THE BENEFITS OF LED SYSTEMS Great savings on electricity Fewer maintenance costs Fewer toxic or harmful substances Lower UV and IR radiation emissions Long average working life

The beach in Mattinata (Foggia), a major resort town.

Vito Moramarco -

• an accent lighting system for the town hall and the library.

vmoramarco@cpl.it

Project Manager Andrea Tassoni -

atassoni@cpl.it

Project Engineer

At the moment, the outdoor lighting system – comprising a total of 1560 fixtures with a total 170,980 W of power – is extremely worn in some places and features materials which are no longer up to safety standards.

After the regulatory compliance work, the lighting levels will be appropriate for the type of road system, as well as compliant with the relative UNI regulation and light pollution requirements.

Not only that, the system will ensure uniform lighting coverage for all streets, squares, and public areas.

To achieve a satisfactory level of safety, work will be carried out on the control and protection panels, on the power and branch lines, on the system components that could pose a risk to inhabitants’ safety, and on the earthing system.

Once the work is finished, there will be a total of 1,380 lighting fixtures with a nominal power of 53,249 W, making an energy saving amounting to 68.76% with regards to the existing system prior to the works.

The design choice is to replace all the light fixtures with a highperformance LED system, whose technology (produced by AEC and tested personally by our public lighting division manager, Daniele Diacci) is set to be the lighting of the future.

The characteristics of the various lighting fixtures, including the power and performance of the chosen lamps, meet the minimum conditions (luminance, light output uniformity, glare control) envisaged by UNI 11248 in relation to the lighting class/ category of the roads in question and comply with regional legal requirements.

Following the work, energy consumption will drop. According to calculations, we can expect a 68.76% reduction in the annual TOE

A few months ago our company completed its mission to completely replace all the lighting fixtures with LED technology in the town of Lesina (Foggia), making it the first-ever all-LED town in the Puglia region.

Also in the province of Foggia, activities are currently underway to upgrade the public lighting system (including a twenty-year management agreement) in the town of Chieuti, a small farming town located in the Daunia Apennines.

Now, the town of Mattinata - an important resort town whose coastline is scattered with sites of natural beauty - has commissioned CPL to provide management services for the public lighting systems and to implement energy efficiency and compliancy measures on the systems in question.

To achieve greater energy efficiency and provide more effective lighting, the following work will be carried out: • partial or total refurbishment of part of the public lighting network and replacement of all light fixtures with a LED system compliant with regional standards, offering several advantages, including: considerable savings in terms of energy consumption, lower maintenance costs, fewer toxic or harmful substances, lower UV and IR radiation emissions, and a long average working life; • refurbishment and modernisation of power lines and electrical panels; • regulatory compliance and safety measures, including inspections carried out at the base of the iron lampposts and stability checks, with replacement, where necessary, of any lamppost uprights and arms showing an advanced state of corrosion. All this work will be executed according to the required mechanical stability and - therefore – safety conditions.

• a Wi-Fi system featuring four hotspot in Mattinata’s town centre;

15

CNews n. 42 - september 2013

(Tonnes of Oil Equivalent), which means a saving of 92.3 tonnes.

The project also includes the installation of a four-hotspot WiFi system in the town of Mattinata.

With this broadband internet facility, users will have both access to global communications and the opportunity to get involved in democratic life and community policies.

The hotspots, which are installed at strategic points to ensure the widest coverage possible, will be located near the town hall and along Corso Matino, the main street running through the town. The new wireless network will allow easy internet access via compatible laptops or smartphones without any risk of interference between users.

In an endeavour to maintain continuity with the urban renewal action undertaken so far by the local government, one of the main goals of this project is to increase the town’s appeal, with a view to attracting more people to the area, local inhabitants and tourists alike.

To achieve this, accent lighting systems have been fitted on the facades and balconies of the town hall and the library, to highlight the buildings’ design features and historical significance.

The unusual accent lighting system chosen for the town hall, the library, and the main road running through the town of Mattinata

Less than two hours between shutdown and resumption Remote control systems and customised web platform dramatically reduce average time needed for maintenance service to get CHP plants up and running.

Alessio Vaccari -

CHP plant and its auxiliary devices.

The ongoing pursuit of improvement in performance has also led us to develop increasingly advanced logics for monitoring the cogenerator and auxiliary devices. One of these concerns the management of the heatsink fans.

By lowering the self-consumption (from the previous rating of 4% to today’s 2%), we have increased the cogeneration system’s energy efficiency. Furthermore, all the data received and sent to the field is transmitted via ADSL to an internal server at CPL, within which it is processed and logged on a SQL Server database. This information will provide us with an overview of the performance of all the cogenerators installed and allow us to receive real-time information about downtime and its causes.

Finally, the recording of the data is of vital importance for the administrative department, as it increases billing efficiency and considerably improves customer management. For our staff and the Biogas Maintenance & Cogeneration After-sales division, this represents a significant result. It is the upshot of all our efforts and increasing focus on the electrical aspects, as opposed to in the past, when the mechanical components were our priority (albeit with excellent results). This application has become vital for the CPL service department, to the extent that plant downtime has been reduced to an average of under two hours.

Finally, CPL has a web platform which is accessible by customers from any device (mobile or otherwise), which provides a real-time display of plant status, and allows users to compare data, print it out, and convert it into the most widely used formats. This platform has become an integral part of the maintenance service for improving performance.

avaccari@cpl.it

Remote Monitoring/Engineering Software Manager - Biogas Maintenance & Cogeneration After-sales

T

he Biogas Maintenance & Cogeneration After-sales division at CPL focuses considerable attention on remote monitoring and remote management of facilities, with a view to meeting biogas market demands and tackling increasing competitiveness within the industry. That is why we have designed and developed a software application and hardware that interfaces with all the cogenerators on the market today.

This product increases operation availability to 98.7%, thereby reducing downtime and troubleshooting time, while increasing the power output and, most importantly, customer satisfaction levels. The application originates from the customisation of software solutions based on individual customers’ requirements and uses cutting-edge SCADA systems for viewing, monitoring and recording data and integrating it with the reliable, powerful control systems for the PLC peripheral devices. A remote monitoring panel has been installed on each plant that was started up in 2012. It features a PLC unit for monitoring the peripheral device and a 15’’ Windows-based touchscreen monitor with the CPL-designed supervision system installed. The choice of the Movicon SCADA and the Siemens PLC stems from careful and thorough market research. The work done on the plants in previous years alongside the maintenance engineers has helped us in a number of ways, i.e. to create a system capable of receiving data from the field, such as the analogue elements; to interface with the manufacturers of the digesters, the engines, and the electrical equipment (electricity meters, thermal energy meters, etc.) via communication buses (MODBUS, PROFIBUS, PROFINET, etc.); to develop such a huge amount of data and to monitor the

17

Germany, the creation of Gas Energy Solutions New company markets components, systems, and services for natural gas worldwide. First workshop held in Italy for GES agents on G4 household meters and other products.

The tour of the production facilities at Cooperativa Bilanciai in Campogalliano (Modena).

The workshop provided opportunities for discussion and training concerning the products marketed by GES.

Sara Cavazza -

scavazza@cpl.it

Plants, Services, and IT Solutions division, Management Assistant

C

PL CONCORDIA keeps its sights on new horizons abroad. As part of the gradual internationalisation of the business, the incorporation of GES (Gas Energy Solutions) GmbH, based in Germany, comes in the wake of the creation of CPL INDUSTRIAL, the branch dedicated to the industrialisation of CPL brand products. Established under German law, with shares held by CPL CONCORDIA and two major companies in the industry, GES will be operating in the world market, selling the products offered by the combined areas of the industrial division mainly in Europe, the Middle East, and Eastern Europe. Building on its managers’ thirty years of experience, GES aims to be the company people in natural gas transportation and distribution look to for the supply of components, systems, and services for natural gas use. On the 11th/12th June this year, the newly-established company held its first workshop. Conceived by CPL’s Natural Gas Sales Director, Tiziano Zocchi, the event was organised with the intention of offering prospective GES agents a theoretical and technical introduction to the variety of activities and products handled by CPL and its partners. The workshop was held in two different locations to give participants the opportunity to visit the assembly line where the Smart meters are built, at the company Coop. Bilanciai in Campogalliano (Modena). The workshop began on Tuesday 11th June at the CPL headquarters in Concordia sulla Secchia (Modena), which had been specially fitted out for the event with the main products involved in the training. Over the course of the day CPL, Polargas, and other industrial partners introduced their respective activities in a series of speeches.

These contributions were followed by a formal dinner attended by all the foreign guests and staff (35 people in all), which proved to be a pleasant moment of socialisation and a nice example

of multicultural integration. On Wednesday 12th June, the workshop moved to Coop Bilanciai in Campogalliano. The main theme of the day was metering and the workshop began with a tour of the assembly line where our G4 household meters are manufactured. The speakers then went on to present the CPL meters and software for gas distribution, ending with a brief introduction to cogeneration and trigeneration. At the end of the workshop, the participants were given a questionnaire for the assessment of various aspects of the event, including logistics, organisation, and the topics covered. Overall, the feedback on the catering/accommodation, the general organisation, and the areas discussed was positive. With regards to the second workshop (to be held in 2014), one of the main goals will undoubtedly be to explore the sales and promotional activities more closely, which we are working on at present. Last but not least, special mention has to go to the refreshments (strictly Italian cuisine, of course) which were hugely appreciated by all the foreign guests. The event, which was overseen with great interest by senior management and organised entirely by internal personnel, offered another opportunity to see staff from across the board working together effectively and smoothly. This kind of cooperation, achieved through commitment, conviction, and enthusiasm, is another reminder of the qualities that contribute to the strength of our cooperative.

19

Coop Cartai energy consumption figures read every quarter of an hour Remote monitoring of electricity use with EFOR2 Illumination network analysers allows constant reporting to monitor electricity network peaks and characteristics.

The Coop Cartai premises in Modena

Marco Pulega -

mpulega@cpl.it

Manager of Remote Monitoring and ICT Equipment sub-division

T

he Cooperativa Cartai Modenese (CCM) is one of Italy’s largest cooperatives to handle food packaging, cleaning, hygiene, and packaging, with a range of over 5,000 products. To improve business efficiency, a remote electricity consumption monitoring system has been installed at the company.

The system, called EFOR2 ILLUMINATION, lets users monitor their power use and break it down according to the branches of the electrical system, in order to monitor them individually.

The system features an electronic control unit equipped with GPRS modem and peripheral network analysers that have been installed at the main meters and the other points required.

These analysers also allow users to monitor the characteristics of the power supply, including voltage, current, and phase shifts (single and three-phase).

All the analysers are linked up to a single supervisory control unit via serial connection. Given the long distances within the plant, Ethernet converters have been adopted to make use of the existing network and avoid laying new cables.

The control unit is powered at 230 V ac and has a rechargeable battery to guarantee the alarm signal even in the event of a short power cut.

The integrated GSM/GPRS modem sends daily data to the CPL control centre for posting on the web, as well as a daily consumption report via e-mail.

Electricity usage is also metered based on TOD (time-of-day) rates, making it easier to check the monthly bill.

Given the presence of non-interruptible loads, the company has chosen to use openable current transformers, so as to allow installation of the system without any production downtime.

Many analysers have been incorporated into existing electrical

panels, thereby keeping the space needed for the remote monitoring system down to a minimum. Data can be displayed by accessing a protected area of the CPL CONCORDIA portal.

This way, the customer can view and manage logged metering data and likewise process and organise the data from the installed devices into appropriate pages.

The portal allows users to view consumption data and supply network characteristics for each analyser (or each point monitored) via a dedicated page, with readings taken every quarter of an hour. The system also displays the maximum and minimum peaks of each curve, for better analysis.

Daily consumption rates are also viewable, broken down by phase, and showing the maximum and minimum peaks, or the days when energy consumption was higher or lower.

To facilitate data analysis, and therefore production optimisation, users can draw on the integrated graphic representation function in the web portal, which they can use to display trends, such as power and energy over time.

The server is managed entirely by the CPL CONCORDIA infrastructure, relieving the management of Coop Cartai of the running of the control centre and the related hardware and software upgrades, as well as the relative staff training activities and data acquisition system management.

21

CNews n. 42 - september 2013

€3 MILLION OF WORK FROM SONELGAZ

Contracts were signed with SONELGAZ/ CAMEG (three contracts for a total of about 800 odorising units and one for around 400 filters) and with SONELGAZ/ GRTG (one contract for heaters), for a total of approximately €3 million.

Aipower products for the Algerian Oil&Gas market After first year in business of mechanical engineering workshop in Algeria, CPL Group member expands production capacity through extension of premises and introduction of new equipment.

Gioacchino Sisti -

Algeria though, we were able to demonstrate the managerial competence and technical skills, as well as the managerial flexibility of AIPOWER. All of these qualities are vital in this increasingly difficult market, exposed to competition from foreign and local companies, in which dealings with clients (usually local authorities) tend to be unilateral affairs. Hence the choice of this additional investment, which has allowed AIPOWER to acquire a works facility with 1500 sqm indoor space and 1500 sqm outdoor space, and which is fitted out with everything needed for the mass production of filters and odorising units, including: an automated saw, automated drill, welding units of various kinds, lifting trucks, positioners, an electric winch, compressed air supply, emergency generator, and storage and office space. Also worthy of mention are the local teams of pipe fitters, welders, mechanics, and electricians who - coordinated by the AIPOWER construction manager and supported by the CPL engineers - enabled us to finish 50% of the filters and three odorising unit prototypes, so that we could go on with their mass production following approval from the customer. Expanding the production capacity of the workshop has allowed us to participate in other public tenders for the supply of high flow gas skids. Despite local competitors, AIPOWER has managed to secure part of the available contract lots totalling around €2.5 million. What is more - proving that not all local competitors are ready yet in terms of skills and facilities - our client also asked us to accept a contract (setting our own price) that had previously been awarded to a competitor subsequently deemed unreliable in terms of product range and organisational framework. This meant we were able to bring the contract sum up to around €4 million, confirming CPL Group’s ability to do business in Africa too.

gsisti@cpl.it

Chairman and Managing Director of Aipower

A

fter the excellent technical/contractual results achieved for the delivery, in early 2013, of the first two major SONELGAZ contracts for the local construction of gas skids (30 units measuring 2500 Nm3 - 70/4h bar and 215 low flow/pressure units), CPL CONCORDIA Group member Aipower (which operates in the Maghreb) is continuing with its localisation process. With the acquisition of new contracts for the construction of products for handling natural gas (filters, odorising units, heaters), CPL is forging ahead with its internationalisation strategy. The contracts were signed with SONELGAZ/CAMEG (three contracts for a total of about 800 odorising units and one for around 400 filters) and with SONELGAZ/GRTG (one contract for heaters), for a total of approximately €3 million. Until now, these customers had generally resorted to importing these products, since there were no local suppliers with sufficient design and construction experience to meet their needs. After securing the contract, we underwent a series of eligibility inspections (along with our local competitors) to verify levels of both organisation (contract management, engineering, construction, etc.) and production capacity (space and equipment). Of course, since these were the first tenders of this kind, we had to act fast to ensure our operating and production facilities met the contract specifications, managing the scheduling based on the period of uncertainty that arises from the moment the tender is awarded to receipt of the notice of contract.

Getting everything arranged and deemed eligible in such a short space of time was no mean feat! Thanks to the commitment, expertise, and team spirit of all my colleagues in Italy and

23

New supervisory system for purification plant at Alto Vicentino Servizi Isola Vicentina and Schio plants equipped with software featuring dedicated graphics pages for alarm management and preventive maintenance.

The Alto Vicentino Servizi purification plant in Schio (Vicenza) With the new supervision software, users monitor all the operating parameters from a distance.

Marco Pulega -

from the PLCs, analyse the operation, and alter the parts involved in communications with the SCADA system to ensure proper dialogue.

The system’s complex architecture comprised master PLCs interconnected with devices (pumps, actuators, etc.) and slave PLCs linked, in turn, to other devices, all via Modbus and Profibus networks.

The SCADA system provided links up with the various PLCs via Ethernet connection and a web interface, so that it is accessible from any location with an internet connection, which means

mpulega@cpl.it

Manager of Remote Monitoring and ICT Equipment sub-division Massimo Grassilli -

mgrassilli@cpl.it

CPL Industrial Sales

A

lto Vicentino Servizi is a multiservice company that handles water pipelines, purification, and sewerage for the entire Alto Vicentino area.

In 2012, the company issued a call for tenders for the replacement of their SCADA system (supervisory software) for the two plants located in Isola Vicentina and Schio, which had become obsolete and was also subject to modification restrictions.

The new SCADA system obviously had to interface with peripheral devices and the existing PLCs in use, as well as providing all the features of the previous system and guaranteeing correct operation.

In securing the contract, the ICT division at CPL CONCORDIA undertook to replace the system, involving the analysis of the previous system (to establish the process and problems a sewage treatment plant may experience) and system maintenance for 10 years.

After studying each page of the existing SCADA system, we went on to build similar pages for the new system, focussing in particular on how data is displayed and alarms are managed.

The data is displayed in the form of tables and graphs, which are designed for maximum ease of use.

Proper alarm management (i.e. receipt, reporting, tracking, and transmission to on-call duty staff) is fundamental to intercept any lock-outs or malfunctions, allowing users to take preventive or corrective action to keep plant downtime to a minimum.

Another difficulty encountered was the interfacing with the existing Siemens PLCs in use, since nobody was familiar with their operations and we did not have the programming source code.To perform the work and - most importantly - guarantee the customer flawless operation, we had to extrapolate the code

users can not only view data remotely, but also configure operating parameters.

The experience gained with Siemens controllers (used increasingly in Italy and worldwide) and with the purifier should allow us problem-free handling of new work in this area in the future.

By integrating these new automation systems with existing ones for water metering, for monitoring groundwater levels and pressure, and for failure alerts, CPL can offer a comprehensive water management service.

25

Heating and clean power with “Energia Plus�

For the next 20 years the town of Sava, in the Italian province of Taranto, has opted for energy from renewable sources and efficient thermal power plants for its community facilities and schools, thanks to one particular E.S.Co, CPL.

GOALS 1. Beneficial agreement between CPL CONCORDIA and the town council 2. Energy savings: lower consumption = lower costs 3. Costs of new plant covered by savings.

4. Replacement of obsolete high-consumption plants.

5. Financial exposure spread over time.

6. Pollution curbed.

View of council buildings in Sava where photovoltaic roof panels have been installed

Luigi Laterza -

parameters and to intervene quickly before an actual, noticeable fault is experienced at the customer’s end. To meet the contracting authority’s goals, CPL has drawn on all its know-how in heat management, global service, and photovoltaic system management since the early stages of the preliminary planning for the tender.

This meant that we proposed a refurbishment of all the thermal power plants with condensing boilers, including the conversion from diesel to natural gas. A step that, as well as improving performance and cost savings, would provide a significant reduction in harmful emissions into the atmosphere.

Thinking along the same financial and environmental lines, we have installed photovoltaic arrays with capacities ranging from 11.52 to 51.70 kW on the buildings’ roofs (including the multipurpose centre for the elderly), which produce a total of 231 kW of power. Both the thermal power and the PV systems are equipped with a remote consumption/production monitoring system, as well as remote features for testing plant operations and efficiency.

Further checks and corrective actions are also implemented by obtaining feedback on the services offered (school buildings, multi-purpose buildings, etc.) from users, in order to establish performance and customer satisfaction levels.

CPL will also provide the local authority with a technical/ administrative advisory service to ensure the documentation supplied with each component or system complies with legal requirements and applicable standards.

llaterza@cpl.it

Project Engineer Vincenzo D’Alò -

vdalo@cpl.it

Project Engineer

T

he town of Sava has put its “Energia Plus” department in the hands of CPL CONCORDIA, which will be handling heating and electricity supplies, as well as the running and maintenance of the heating and electrical systems, with technology upgrades also planned.

The service, which is covered by a twenty-year agreement, concerns eight buildings, including school facilities (from nursery age through to lower secondary) and the town hall, making a total of almost 70,000 m3 managed. Unsurprisingly, given the difficult times for local government, the main aim is to make financial savings, although the project also has technical and organisational objectives, i.e.: 1) greater economies of scale (as all the organisation and management of energy-linked activities are entrusted to a single company) and greater end-user satisfaction; 2) energy savings (through work on systems for energy conversion and use and adoption of renewable energy sources); 3) the planning, provision, and implementation of compliancy work, as well as the upgrading of facilities to generate energy and management savings, which will be carried out with external funding.

As an E.S.Co. (Energy Service Company), it is in our company’s interest to ensure qualified systems management and maintenance for maximum efficiency, as a result of which thermal energy is produced at the lowest possible cost. Rational and aware energy use, through temperature control and individual metering devices for the heating supplied, will be beneficial for both the town of Sava and individual users alike.

All these activities are complemented by a round-the-clock oncall service, made possible by the supervision system and the remote monitoring/management system. This allows us to perform preventive maintenance based on shifts in operating

”Energia Plus”

”Energia Plus” is the name given to the heating system management agreement entered into by the owner of a heating plant with a certified E.S.C.O (Energy Service Company). Under this kind of agreement, an E.S.Co. undertakes to ensure the financing and implementation of all work designed to lower energy use, such as the replacement of boilers, independent temperature control, heat metering, and thermal insulation, while the customer pays the company for the necessary investments and the heating used throughout the term of the agreement.

27

Maintenance brings new shine to panels Full-service management crucial for photovoltaic system performance. CPL’s experience in 20 solar fields located through central and southern Italy.

Park maintenance and cleaning solar fields

Giovanni Pepe -

• routine and special maintenance for the electrical plants; • routine and special maintenance for the anti-intrusion and video-surveillance systems; • surveillance contract management; • WiFi contract management; • preparation of plant/system performance reports; • scheduled meter calibration.

All systems are equipped with a production monitoring system, which - in the event of failure and/or malfunction - sends an sms/ email alert to the maintenance department. Once the emergency team are on site and have assessed the need to replace the faulty equipment, they plan out the work taking the materials required

gpepe@cpl.it

Project Engineer, Bari Area Roberto Ciarrocchi -

rciarrocchi@cpl.it

Project Engineer, Sant’Omero Area

A

fter designing and building 20 solar fields, each with a 1 MW capacity, in an area extending over Italy’s Puglia and Abruzzo regions, CPL CONCORDIA is now providing the power companies with a fully comprehensive maintenance service for the plants. Sixteen of the fields are spread over the province of Bari, and more specifically in the towns of Turi, Noci, Binetto Altamura, and Triggiano, while the remaining four are located in the province of Teramo, in the towns of Sant’Omero and Torano. The full-service maintenance and management agreements include all the activities needed to ensure optimal performance and to provide the customers/owners with the highest possible levels of satisfaction (i.e. operating results that tally with forecasts). These activities can be divided into two main categories, namely management/paperwork activities and on-site operations. The former includes all the management, drafting, and updating of documents, as well as the collection and transmission of data contractually required by bodies such as GSE (the Italian energy agency), Enel (power provider), the customs department, etc. In more detail, these activities include entry of production data in the GSE portal, preparation of the annual license fee paperwork, authentication of registers with the customs department, preparation of the annual consumption statement and submission thereof to the customs department, and preparation of the fuel mix declaration for the GSE. The second category of activities concerns all the work stages to ensure faultless operation and productivity of the field itself, including: • clearance and cleaning of indoor and outdoor areas;

from the local storage facilities, keeping production losses to a minimum. The work is carried out by the CPL staff from the Bari and Sant’Omero branches, assisted and supported by colleagues from the “Photovoltaic and Renewable Energies Specialisation “ division, based in Concordia. An example of the backing provided could be the refresher course held recently on maintenance procedures and techniques for photovoltaic systems.

29

Biogas production from farming and livestock in Italy

994 biogas plants operational

374 biogas plants operational in Lombardy alone

Available rated power from agricultural and livestock biogas in Italy 756 MW

2012

388 MW

2011

176 MW

2010 2009 2008

98 MW 60 MW

Bio-natural gas in Europe CH4 vehicles in Europe Europa

1,200,000

Ratio of natural gas vehicles to fuelling stations

85.000/860

500/33

700.000/830 Source: CRPA Lab

Digestion methods on the rise Biogas Innovation workshop at Piacenza’s Università Cattolica. Increasing energy production at centre of debate and spotlight on varying spread of plants throughout different regions.

Gabriele Greco -

ggreco@cpl.it

Communications Manager, CPL CONCORDIA

T

he production of biogas and its use in the generation of power are fast-evolving issues, as the winds of regulatory change and the application of new technologies lead to new routes. The growth of this market requires a correct cultural approach, with in-depth knowledge and clear, comprehensive communication methods for those wishing to invest in this sector. Now in its fifth year, Biogas Innovation is sponsored and organised

by CPL CONCORDIA with the aim of promoting our solutions alongside themes such as innovation, new technologies, and the experiences of an industry in which Italy ranks as the third largest biogas producer. The 2013 workshop, held on 13th June at the Università Cattolica del Sacro Cuore, involved speakers of the likes of Francesco Masoero, (Director of the Institute of Food Science and Nutrition, Professor of Agriculture), Lorella Rossi (member of Reggio Emilia’s Animal Production Research Centre), Flavio Cammi (Head of RES at the Tadini Experimental Company) and Luigi Buondonno, manager of ECONOCOM. From CPL CONCORDIA Group, valuable contributions were provided by Nicola Morgese (Head of RES) and Cesare Cremonesi (Chairman of Biogengas, a new CPL Group member company).

Some extremely interesting data emerged at the workshop, offering a clear picture of the biogas energy production situation in Italy. In the agricultural/livestock industry alone - with 994 installed systems and a production of over 750 MWe - Italy ranks third in Europe, after Germany and England, in the production of biogas. Over the past five years, growth in the sector has been exponential, with the electricity produced doubled in only a year.

Also noteworthy is the difference in the spread of biogas production plants (crops, livestock) from region to region, with - for example - Lombardy totalling 374 and Sicily none at all. The overview that emerged from the conference included an exploration of the critical regulatory issues,

technical aspects, and bureaucratic constraints concerning the construction of an anaerobic digestion plant linked to the forms thereof, which differ in terms of product, byproduct, and waste. A brief mention was also made of the potential offered by bio-natural gas production, which given the number of cars running on natural gas in Italy at present and the constant demand for savings - would be another key factor for growth in this sector. In addition to the technical and formal aspects, the conference offered a real opportunity to examine a number of development and research experiences, accrued as a result of our endeavour to optimise methods and ensure scientific accuracy throughout the process, with chemistry-based approach. The first-hand accounts of the speakers from the Tadini Experimental Company, Biogengas, owned by the Cremonesi brothers, and CPL engaged the audience and provoked lively discussion.

Actions speak louder...

Watch video of success stories in Reggio Emilia and Cremona

Thanks also to the invaluable contribution of Informatore Agrario (our media partner for the conference), we can confirm CPL CONCORDIA’s commitment to this type of venture, which are first and foremost a forum for encounter, an opportunity to respond to real problems with proven solutions. Today, what most sets CPL CONCORDIA apart from its competitors is the reliability and quality of service, as well as the ability to meet the needs and goals of breeders and farmers.

CNews n. 42 - september 2013

Multilingual meeting reflects CPL’s global approach CPL annual meeting to approve the 2012 financial statements attended by over 1,000 guests and foreign delegations.

Congratulations from the Minister for the Environment, Andrea Orlando: ”You are an example of growth oriented towards environmental sustainability and sustainable development”.

Francesco Manicardi -

fmanicardi@cpl.it

Head of Press Office

O

n the morning of 22nd June, a big top circus tent set up between the temporary facilities at CPL provided entertainment space for over 1000 guests from all over Italy and abroad. The CPL CONCORDIA members’ meeting was held to approve the 2012 financial statements on the usual corporate premises in Concordia sulla Secchia, after a year in which part of our corporate life (imposed by circumstances) had been relocated to the Forum Monzani building in Modena.

This homecoming was strongly supported by cooperative leaders as a way of expressing to everyone, members and guests, the desire to remain local even after the destruction and disruption of last year’s earthquake.

Prominent figures that attended this year included Giuliano Poletti, chair of the dell’Alleanza Cooperativa Italiana (Italian Cooperative Alliance), MEP Salvatore Caronna, chair of the Emilia Romagna regional council Palma Costi,

and regional councillor Giancarlo Muzzarelli, as well as chair of Legacoop Modena Lauro Lugli, and various mayors and representatives from a number of institutions and banks. After a greeting from CPL’s deputy chair Mario Guarnieri and a video showing an overview of the main figures in the financial statements, chair of the board Roberto Casari presented the management report.

“The earthquake has not changed our lives. On the contrary, it has confirmed our company’s strength and the indispensable involvement of the ten CPL branches located throughout Italy meant that our business activities were never interrupted”. Proceeding sector by sector, Casari highlighted the cooperative’s solidity in the different energy areas, underlining how many of today’s activities are new, having been introduced during the past five years.

“We are investing in research and development for new technologies for energy saving and energy efficiency, and our presence abroad is constantly growing”.

Even during a difficult year like 2012,

the figures showed that CPL Group has once again confirmed its ability to produce profits that are proportional to turnover. The value of production amounted to €411.4 million, making an increase of 6 % over the €388.2 million of 2011. Of this, 64% comes from the power and RES sector, 11% from network construction and maintenance, and 13% from gas distribution and sale.

Income earned abroad amounted to €23 million. Next came the guest speakers.

MEP Salvatore Caronna stressed how CPL and local businesses have had to a two-fold problem, the earthquake combined with the economic crisis, the most serious since the second world war. “We’re talking about 40 million people in Europe living under the poverty line, an unprecedented social crisis.” In these situations, the social and economic importance of businesses is clear. “I think we should be proud of the fact that this idea, i.e. that making a profit can be compatible with providing dignified employment, is one of the most important values upheld in this area. Palma Costi, chair of the Emilia

THE PRESIDENT NAPOLITANO �I would like to express my sincere appreciation of the willpower and ability demonstrated by the people of Emilia in the face of adversity, aware as I am that within its close-knit network of companies lie our well-founded hopes for a fresh start.�

33

CNews n. 42 - september 2013

regional council, recalled the first meetings held under the canopies at CPL in June 2012 “to discuss the future”, where the work went on non-stop without breaks by either companies or representatives from the various institutions. The mainstays of work and business supported us through those moments. Ms Costi expressed her desire to see national investments in the Emilia region, wherein, rather than being looked upon as welfare, such funding is viewed as an injection of lifeblood to support one of the most productive areas of Italy. Councillor Muzzarelli reiterated the need to establish a comprehensive law on natural disasters, so that action can be taken quickly and fairly everywhere.

The earthquake experience in Emilia should lead the way.

Giuliano Poletti, chair of Alleanza Cooperativa Italiana, highlighted how cooperatives represent one of the forms of enterprise that is holding up best in the economic slump. “Over the past four years, employment in Italy has fallen by 2%, while employment in Italian cooperatives has risen by 8%.” Mr Poletti reminded participants of the 13 million

members of the three major central cooperatives which – in a considerable commitment – have decided to join forces to create a new way of thinking to combat a recession caused by injustice and improper distribution of wealth: “This alliance of Italian cooperatives is the ideal tool to promote a new culture in Italy, which means a fairer society, a more equitable market and social economy and the accountable involvement of local communities.” After the contributions from international guest speakers (covered on the next page), the voting process began to decide the partial replacement of the members of the board of directors. The meeting then unanimously approved the 2012 financial statements, which reported an increase in the group’s equity to €137.2 million, from €129 million in 2011, marking an increase of 6.2%. Positive signals were also picked up on the employment front. At the

end of 2012, the cooperative employed 1,278 workers, while in the first five months of 2013, it added 40 new workers to its books, and cooperative members exceeded the 800 mark.

In the afternoon, the Minister for the Environment, Andrea Orlando, paid a visit to the works: “CPL is an example of a growing business which analyses the environmental sustainability of a project prior to the implementation thereof, choosing long-lasting development over than short-term fixes”. Minister Orlando ended his speech by praising genuine cooperatives, like CPL, for “two characteristics that are essential to today’s economy, namely the sharing of employment resources and the commitment (which has become a competitive advantage) to reinvesting the profits in the company and its capital. This legacy of the past is a significant resource for cooperatives of today.“

The contribution from the Minister of the Environment Andrea Orlando at CPL’s Sala Bighi conference hall (Next page) Oscar Ernesto Solis, Argentina’s Deputy Minister for Agriculture, greets members

Letter from the Minister for Economic Development Flavio Zanonato to the CPL cooperative members ”I am sorry that, due to official commitments, I cannot be with you today at your financial statements approval meeting. Your cooperative has lived through 115 years of Italian history, always keeping attention placed firmly on work values, subsidiarity, respect for the environment, and sustainable growth.

All this is even more true in light of the difficult economic and financial crisis

we are going through. A crisis which we can - and must - overcome by working together in the same direction, striving for development and using strong, skilled production companies like yours for leverage.

I find it particularly interesting that, while maintaining ground locally, your company is also obtaining significant new market shares by opening up in foreign markets such as Eastern Europe,

North Africa, lndia and the United States.

This is the most concrete signal of a proper internationalisation strategy which brings know-how, technologies, and skills abroad from Italy.

As a government, we are determined to do everything in our power to boost investment and create new growth and jobs. [...] Let me end by wishing you a constructive meeting and urging you to keep up the good work!”

FOCUS ON

Many nations, one internationalisation project

A global feel for the 2013 meeting to approve the CPL CONCORDIA financial statement, with over 30 guests from all over the world, from Poland to the USA, Argentina to Mexico.

C

PL Industrial’s Sales Director Michele Crivellari introduced the partners and delegations from abroad, presenting 30 guests representing the various nations on the CPL road map in the internationalisation projects, involving products and services for natural gas, equipment for shale gas, LNG, smart cities, facility management, and renewable energy sources.

From Argentina, Oscar Ernesto Solis,

Deputy Minister for Agriculture, and Javier De Urquiza, Head of RES at the Ministry of Infrastructure, stated: “Argentina has historical ties with Italy, whose emigrants have brought us the expertise, labour, and commitment that have helped our nation to grow. The managerial skills and activities you are working on will be met with enthusiasm and we hope to be at the centre of your road map”.

35

Constantino Ortiz, Mexican citizen and managing director of Corsital, was accompanied by government representatives from the City of Mexico, Salvador Ortiz and Ivan Dominguez, who explained: “We are creating a joint venture with CPL to develop energy technologies: The potential for public and private investments offered by Mexico is particularly attractive since the Mexican President has set a target of 35% renewable energy by the year 2025”.

From Poland, Joka’s chairman Andrej Drodz spoke on behalf of the delegation, highlighting how the acquisition of 13 MW of cogeneration power “had demonstrated the strength of our Polish/ Italian joint venture”.

Dario Gristina, CEO of CPL CONCORDIA USA, confirmed the words of CPL chairman Roberto Casari, who had mentioned how CPL had been deemed “sexy” by the US market, explaining the attraction held the company. “Thanks to the discovery of natural shale gas reserves, our energy market keeps on evolving, opening up opportunities for the skills offered by CPL. The prospects in Manhattan alone equate to cogeneration installations totalling 800 megawatts.”

CNews n. 42 - september 2013

€635 million target for CPL Group for 2015 Over the next three years, we have plans to invest approximately €125 million, in particular in our Energy Service Company (ESCo) activities.

Pierluigi Capelli -

pcapelli@cpl.it

Chief Financial Officer, CPL CONCORDIA

O

n 25th February, the Board of Directors of CPL CONCORDIA agreed a business plan for the Group for the years 2013-2015.

During this period, we aim to achieve a significant increase in the value of production. By the end of 2015, the figure should be somewhere around €635 million (an increase of €224 million with respect to the final balance of €411 reported at the end of 2012). CPL believes that this result can only be achieved through a major development in foreign markets. In actual fact, the increase in production that the cooperative estimates to reach for the domestic market will probably not exceed 7% in relation to the 2012 figures.

In addition to the ‘usual’ countries such as Romania, Algeria and Argentina the main foreign markets concerned by the development of the Group’s core business will be Poland, France, Germany, and the USA. We are also

currently building contacts, some of which have led to negotiations that are underway at present with parties resident in Cuba, the United Arab Emirates, and Ukraine.

Over the next three years, CPL CONCORDIA will invest approximately €125 million, most of which will be generated by our ESCo activities and, for accounting purposes, will therefore be classified as “works on third party assets” and amortised over the life of the contracts to which the investments refer. This major development goal that CPL has set itself for the core business will not, however, alter the existing balance between the profit and loss account and the assets and liabilities statement in the last approved financial statements.

The business plan envisages that the group’s financial requirements will amount to just over €200 million. This sum will be used to cover the increase in working capital generated by the rise in sales, as well as to partially cover the investments (i.e. for the part not covered by the cash flows) and to

refinance existing mortgages, currently under amortisation. These include, in particular, the two lines of credit amounting to over €40 million received

by CPL CONCORDIA and Coopgas and used to pay taxes, VAT and contributions for the period from May 2012-2013.

These lines were issued by two banks using funding provided by Cassa Depositi e Prestiti S.p.A. Despite the credit crunch – of which we have been feeling the effects of for some years now - and a fluctuating spread, the group is putting its good credit rating to use in order to obtain the resources necessary for its maintenance and development. On 18th July, CPL commissioned “Mazars S.p.A.” to procure sources of funding to support its business plan. Mazars’ work will be aimed at providing CPL Group with borrowing facilities in the following forms: Lines of non-recourse factoring for the assignment of receivables and lines of reverse factoring for the management of payables;

Building the gas pipelines in Central and Southern Italy The new site for Coopgas, a CPL CONCORDIA Group sales company

new multi-year lines and/or renegotiation of certain existing lines; issuance of bonds or private placements; financial leasing of real estate.

In the period between January and July 2013, the cooperative had already entered into a number of major multiyear funding agreements, including €5 million granted by Intesa Sanpaolo SpA; €2 million granted by Deutsche Bank S.p.A; and €10 million granted by BNL S.p.A., which used funding provided by the EIB and involved SACE S.p.A in the operation, which resulted in partial coverage of the accounts receivable by CPL CONCORDIA. Finally, €15 million has been granted by Cassa Depositi e Prestiti S.p.A. CPL will be able to use this line to secure partial funding of investments relating to agreements with the local authorities concerning, mainly, measures to increase energy efficiency and/or upgrade systems.

In addition, Veneto Banca S.c.p.a. approved new loans to the group amounting to €5 million, including a 1.5 million line. Unipol Banca S.p.A., meanwhile, approved a €1 million line for an associated company, Fontenergia S.p.A. Within the current year, we also expect to complete the transfer of 49% of the newly-formed European Gas Network S.r.l. (a holding company which will receive the cooperative’s shares in subsidiaries engaged in gas distribution) to two private equity funds.

This purely financial transaction will pour approximately €20 million into the group’s coffers. The group has also forecast the divestiture of certain minority shareholdings, from which we should receive sums amounting to around €30 million.

Through these transactions, the group is looking closer to meeting its financial budget goals for this financial year.

Other operations will undoubtedly be needed by the end of year, but the main

37

strategies (or at least those linked to debt coverage) have been established.

The idea of using other sources than conventional bank loans stems from a decision to act to prevent a worsening of the credit crunch stopping us pursuing the main strategies of the business plan.

Today, the scale of the group justifies this diversification of forms of funding and the partial recourse to other sources than those offered by the banking system.

Sustainability, the driving force behind the creation of shared value The Report 2012 provides greater feedback for stakeholder banks, highlighting the â‚Ź900 thousand invested in training and 105,000 tonnes of CO2 emissions avoided. We are focussing our attention on obtaining certification from an external body.

Marco Dal Dosso -

mdaldosso@cpl.it

CSR manager

T

he Sustainability Report 2012 ended with a thought for our cooperative members and workers and their families in 2012 in the aftermath of the earthquakes that hit the region on the 20th and 29th May last year, expressing our hope for fulfilment and tranquillity for this community. The tone of the report clearly conveys the feeling behind the writing.

The financial statements have always reported on the activities that have enabled our cooperative to remain in business for over a hundred years.

The Sustainability Report, meanwhile, illustrates how the same activities impact positively on both the social fabric of our organisation - represented by our stakeholders - and our environmental footprint.

Ever since its first edition in 2001 (when it was known as the Corporate Social Responsibility Report), our staff have contributed their time and their efforts to the creation of the document.

Over the years, the report has evolved, requiring increasing commitment from the cooperative - which has always believed firmly in this type of reporting.

The 2012 edition was achieved through the combined labour of 28 members and employees.

The Sustainability Report 2012 maintains and confirms the structure of the previous edition, while also

including a number of innovations and improvements.

The first new feature is the upgrade (required by the GRI standard) from 3.0 GRI (2006) to GRI 3.1 (2011). GRI (Global Reporting Initiative) guidelines ensure all stakeholders are provided with a detailed overview of corporate social responsibility and require maximum transparency and completeness of information.

The report has been structured into four main sections, which are outlined below: Corporate identity: which outlines the company’s identity in terms of governance, activities, services offered and modus operandi, from both an organisational perspective and as regards the values we uphold.

Economic performance: this section presents the economic and financial aspects of the financial statements from a more reader-friendly perspective and in relation to the socio-economic value created by the company. This is made possible by calculating the wealth generated by CPL through its business activities (Total Gross Added Value) and then distributed to the various categories of stakeholders with whom it has ongoing relations.

Social and environmental performance: using a series of indicators and information, this section illustrates the impact of CPL on its stakeholders and the relationships established

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and developed with them during the reporting year. The information linked to quality and quantity is presented through trends spanning several years broken down into the cooperative’s main stakeholders, namely employees, members, customers, suppliers, communities, and the environment. It also includes a specific cross-section of the cooperative’s internal and external communication activities.

Improvement objectives: the financial statements are ended with a presentation of the goals the cooperative has set in order to improve its relationship with stakeholders, based on the activities carried out over the years and the results. For each goal, the report outlines the milestones already reached and the progress still to be made.

This year, changes have been made to each of the macro-sections described above, with a view to increasing ease of reading for the stakeholders, rendering the information more accessible.

Through the use of appropriate graphics, greater emphasis has been placed on some of the key performance indicators used to illustrate the cooperative’s social and environmental performance.

A highlights section has also been added, to introduce the document, which draws attention to the main figures and the results achieved by CPL in 2012.

In order to better integrate the various

CNews n. 42 - september 2013

kinds of information present not only in the Sustainability Report, but also - for example - within the CPL CONCORDIA web portal, a series of links have been included in the pages, to take users to online content and the cooperative’s corporate documents, including its code of ethics, bylaws, and security/safety policy.

In the 2012 edition of the report, our relationship with the banks was further examined through the inclusion of a questionnaire designed to identify areas of improvement concerning our dealings

with the various credit institutes.

To ensure continuous improvement of the reporting process, we have upgraded our procedures to reflect the 3.1 version of the GRI (2011), which resulted in the inclusion of a number of new, more specific indicators concerning CPL’s performance in areas of governance and social and environmental responsibility.

In the report, we have endeavoured to paint an unbiased picture of CPL’s performance, embracing both positive and negative aspects.

The approval of the financial

statements by the CPL CONCORDIA board of directors at its meeting on 2nd September confirms the cooperative’s conviction in the reporting of its nonfinancial performance.

The level of compliance in the application of the 3.1 version of the GRI (2011) to the Sustainability Report was B (on a scale of C to A).

An important goal for next year is to obtain assurance of the report from a party outside the cooperative, in much the same way as certification is obtained for the statutory financial statements.

Browse the CPL CONCORDIA Sustainability Report 2012

138 million kWh Biogas power production

Areas covered in Italy

59 million kWh Photovoltaic power production

Countries where CPL Group operates

40%

Subsidiaries and affiliates

18,266 Total training hours

RES electricity used

14,4

Training hours per head

906,653 Total training investment

Legality rating for CPL

CPL first company in Modena to obtain recognition of legality from Italian Antitrust Authority, with two-star rating and plus qualifier.

Fabio Sereni -

fsereni@cpl.it

Head of Tenders

T

he legality rating of is a kind of merit list which aims to highlight commendable companies that operate within the law and promote ethical principles. Businesses with a legality rating will have easy access to credit and will be given priority in the allocation of funding from public authorities, as highlighted in Law n. 62/2012. Obtaining a legality rating was not difficult as, for several years now, CPL has been operating in compliance with principles such as propriety, transparency, honesty and integrity (tangible proof of which is the SA8000 certification of Social Responsibility and Sustainability), which means that most of the

requirements for the rating assignment were already intrinsic to our business procedures. With the demonstration of the requirements prescribed by the implementing regulations, the AGCM (Italian Antitrust Authority) assigns a rating to businesses, which ranges from a minimum of one star to a maximum of three stars. To obtain the minimum rating, it was ascertained that none of members of the board of directors, nor the general manager nor the other managers had any convictions for tax offences or offences against public authorities.

As far as criminal association offences are concerned, it was ascertained that not only had the parties in question never been convicted of such offences, but that there were also no criminal proceedings underway or pending against them. It was also checked that the same parties had no convictions for serious antitrust offences, for breach of workplace health and safety regulations, or for nonfulfilment of pay-roll requirements (salaries, contributions, insurance, and tax) relating to both employees and associate workers, and have not received non-appealable tax decisions concerning undeclared income or orders revoking public funding.

The last requirement to obtained

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the minimum rating is to demonstrate that all payments and financial transactions for sums over €1,000 have been made using traceable payment instruments (e.g. bank transfers, debit/credit cards). The rating can be increased if the company meets the following requirements: subscription to the legality protocol executed by the Italian Home Department and Confindustria; payment traceability systems for amounts lower than those envisaged by law; adoption of the organisational model provided for by Italian Decree n. 231/2001; adoption of processes to ensure Corporate Social Responsibility; inclusion on the “White List”, and subscription to the ethical code adopted by relative trade associations. A plus sign is awarded for each requirement met. If a business is awarded three plus signs, they are automatically converted into an additional stare in the rating. Since CPL meets four of the optional requirements, it has obtained a final evaluation of two stars and one plus sign. Obtaining a legality rating is significant because it demonstrates the company’s reliability from a legality and ethical viewpoint.

It is a great calling card for use in dealings with public authorities and stakeholders both in Italy and abroad, and is particularly helpful when approaching banks for loans.

Riccardo Muti embraces earthquake-struck Emilia region The Concerto dell’Amicizia (Concert for Friendship), held as part of the Ravenna Festival, brought an evening of music and solidarity to the main square of Mirandola, one of the towns most affected by last year’s earthquakes

Francesco Manicardi -

fmanicardi@cpl.it

Head of Press Office

O

ur presence here tonight is meant to be a symbolic embrace extended to all the areas hit by the earthquakes. I, myself, was struck, although not only by what I’ve seen around me here, but by the strength, generosity and courage shown by the local people. These are the words with which Riccardo Muti chose to introduce the Ravenna Festival’s Concerto dell’Amicizia, which was dedicated this year to the people affected by the earthquakes in Emilia in 2012. The choice of Mirandola’s main square as the location for the concert was deliberate since the town was one of the worst hit in the Modena ‘bassa’ (low-lying) region. Backdrop to the event held in the town (once reigned over by the aristocratic Pico family) was the town hall which, wrapped with scaffolding and studded with centring, symbolises the current fragility of all the town’s historical and architectural heritage.

On the evening of 4th July, in Piazza della

From Sarajevo to Mirandola It all began with the concert for the city of Sarajevo, in 1997. With that first “bridge-building” venture, we embarked on our long journey through

Costituente, Maestro Muti dedicated An all-Verdi line up to the victims of the earthquake. The programme included arias, choruses, and symphonies from masterpieces such as La forza del Destino, Il Trovatore, Un Ballo in Maschera, La Traviata, Macbeth, and Nabucco. And, in keeping with the eternal spirit of these ‘friendship concerts’, young musicians and singers from Emilia joined the performance, alongside the Luigi Cherubini Youth Orchestra and the Italian Youth Orchestra. The 375 performers on the stage included students from music schools in Modena, Carpi, Mirandola, and Sassuolo, as well as numerous members of local choirs. “It was a muchneeded display of affection, for both our dignity and our rebirth,” said the Mayor of Mirandola, Maino Benatti . Because, as so many people from Emilia said in those days between May and June last year, “Our land may be trembling, but we stand firm.” The many figures who attended the concert included President of the Senate, Pietro Grasso, Chairman of the Emilia Romagna Regional Council,

Vasco Errani, and the mayors of the towns struck by the earthquake.

The RAI, which broadcast the event live on Radio 3, also showed it on Italy’s leading TV channel, RAI 1, on 25th July. The concert was sponsored by the Unione Comuni Modenesi Area Nord (the local council which groups together several towns from the north Modena area) and local residents from these towns were given numbered seats in the stalls.

Over 5000 spectators were able to follow the event via large screens set up specially in Mirandola’s main square.

The technical equipment was provided thanks to contributions from various sponsors, including CPL CONCORDIA, which - despite the damage suffered to its Concordia and Mirandola premises during the earthquake - is ready to rebuild a future for the local communities in Modena’s low-lying area.

the “ways of friendship”, visiting some very different corners of the world in response to “calls” from cities, towns and villages torn apart by suffering, war, or age-old misunderstandings. The Ravenna Festival has always responded with gestures of brotherhood, bringing together the voices of different peoples under a single banner of

culture and music: from Lebanon to Jerusalem, from Ground Zero to the Mediterranean coastal areas where, every day, boatloads of immigrants are washed ashore, and to the slums of far-off Nairobi. One year on, an Emilia devastated by the earthquake is still shaking, but underneath the tremors lies a longing for recovery.

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Ever thought about using your livestock as a way of producing power?

Put yourself in the hands of Biogengas.

Actions speak louder. Watch this short film on the Pedrotti farm in Reggio Emilia and the Locatelli farm in Cremona.

www.biogengas.it

Biogengas - which originated from a meeting between CPL CONCORDIA e Brevetti Francesco Cremonesi – puts its over twenty years of experience to work in the management of livestock waste, using the best CHP systems on the market.

Biogengas Srl - Albignano d’Adda (MI) - Via Trecella, 1 - Ph. +39 02.95309488 Fax +39 02.95838280 - info@biogengas.it www.biogengas.it