www.energydigital.com | March 2016
S D Y N G R E A N E R E L B B A G W I E N B E 5 GR N I S U
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UPCOMING ENERGY EVENTS IN 2016
TOP 10 STATES IN THE US TO INVEST IN SOLAR
DIRECTOR’S COMMENT
IN THIS ISSUE
Aside from the possibility of Donald Trump being elected President, it’s a wonderful time to be alive. L E T ’ S C O U N T T H E W A Y S : new technology advances are being introduced for renewable energy, solar continues to be a growing trend among residential and business communities, and the displeasure over fossil fuel consumption is growing louder. In fact, Leonardo DiCaprio -- a popular celebrity actor and environmental activists -- even mentioned the topic in his acceptance speech at the Academy Awards in February. “Climate change is real, it is happening right now. It is the most urgent threat facing our entire species, and we need to work collectively together and stop procrastinating. We need to support leaders around the world who do not speak for the big polluters, but who speak for all of humanity, for the indigenous people of the world, for the billions and billions of underprivileged people out there who would be most affected by this. For our children’s children, and for those people out there whose voices have been drowned out by the politics of greed ... Let us not take this planet for granted. I do not take tonight for granted.” As one of the biggest topics in the energy sector right now, the March issue of Energy Digital tackles everything solar. Our first story, which was originally designed as an infographic by Visual Capitalist, takes a look at five of the world’s largest corporations – Microsoft, Sony, Google, Ikea and Walmart—to examine their solar initiatives around the globe. Following the solar trend, we break down the top 10 states in the United States in which going solar can actually be profitable. Depending on where you live, going solar can be advantageous in various ways. Also this month we take a closer look at Google’s latest initiative, Project Sunroof, an online service that combines the images behind Google Earth with calculations such as how much shade trees cast over a rooftop, data on local weather patterns, industry pricing and available subsidies to arrive at its bottom line. Finally, this will be my final month as Editor of Energy Digital. It’s been a pleasure working for this brand and I wish my colleagues the best of luck in the future.
Enjoy the issue! Robert Spence Editor
robert.spence@wdmgroup.com
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CONTENTS
Features
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Examining Google’s Latest Solar Initiative
5 Major Brands Using Renewable Energy in a Big Way
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18 Top 10 States in the US to Invest in Solar
Company Profiles
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Scottish Gas Networks
BRAZIL ABIAPE
AUSTRALIA IPS Australia
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LEADERSHIP
Examining Google’s Latest Solar Initiative: Project Sunroof Is solar right for you and yourhome? Google wants to assist in the decision-making. Written by: Robert Spence
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LEADERSHIP PROJECT SUNROOF, THE company’s latest solar initiative aims to put Google’s expansive data in mapping and computing resources to use, helping calculate the best solar plan for users. The online service combines the images behind Google Earth with calculations such as how much shade trees cast over a rooftop, data on local weather patterns, industry pricing and available subsidies to arrive at its bottom line. “We at Google believe in solar energy. The solar industry needs our help,” said Carl Elkin, the senior software engineer who created the service. Power of the sun Project Sunroof computes how much sunlight hits your roof in a year by taking into account: Google’s database of aerial imagery and maps; 3D modeling of your roof; Shadows cast by nearby structures and trees; All possible sun positions over the course of a year; Historical cloud and temperature patterns that might affect solar energy production. The end result provides users with a set of tools to facilitate the purchase and installation of solar panels, 8
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including calculating how much money a user can expect to save year by making use of solar power. “Project Sunroof recommends an installation size to generate close to 100 percent of your electricity use, based on roof size, the amount of sun hitting the roof, and your electricity bill,” the company states on their website. “Project Sunroof uses current
PROJECT SUNROOF
solar industry pricing data to run the numbers on leasing, taking a loan, or buying solar panels for your house to help you choose what’s best for you. Project Sunroof also compiles the following incentives to calculate your final cost: Federal and state tax credits; Utility rebates; Renewable energy credits and net metering.” If customers are also looking for a second opinion, Project Sunroof
provides a link to the National Renewable Energy Laboratory’s (NREL) PVWatts tool, which calculates hourly or monthly PV energy production based on minimal input. Innovation in the making Launched this past summer in San Francisco and Fresno, California, and Boston, Google expanded the service in December to analyze 9
LEADERSHIP
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PROJECT SUNROOF
properties in 20 metro areas, including Arizona, Colorado, Connecticut, Nevada, New York and New Jersey. According to Elkin, the metro areas were picked based on several criteria, including Google’s available satellite imagery and local market conditions including government incentives. In recent years, Google has invested more than $1 billion into solar energy, including $300 million earlier this year to finance residential rooftop projects installed by Solar City Corp. The company’s involvement in solar comes as many states are beginning to re-evaluate policies that have driven major growth in the practice. Only a handful of states have laws allowing net metering for homes or businesses, according to the National Conference of State Legislatures. In December, Mississippi became the 46th state to adopt broad rules promoting solar power. As of right now, solar accounts for roughly one percent of the country’s total reported electricity generation, with two-thirds of that from utility-scale solar arrays. If you’d like to know more or to get started on going solar, Project Sunroof can put you in touch with solar providers who serve your area. 11
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Using Renewable E
We examine five major b and highlight what smal
R E N E WA B LE S
AJOR NDS
Energy in a Big Way
brands going renewable ll businesses can learn. Written by: Robert Spence
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R E N E WA B L E S THE CASE FOR RENEWABLE energy goes beyond just environmental benefits--it also has the ability to impact a business’ bottom line. “Research shows that the most ambitious companies have seen a 27 percent return on their low carbon investments,” said Mark Kenber, CEO of the Climate Group, an independent, not-for-profit organization. We take a look at five major brands— Microsoft, Sony, Google, Ikea and Walmart—and reveal what small-andmedium businesses can learn from these major companies in order to benefit from a greener business plan.
Big names, big initiatives Microsoft has been committed to being carbon neutral since 2013. The company has signed 20-year agreements to purchase 175 MW of wind energy from Pilot Hill Wind Project in Illinois, and 110 MW of wind energy from Keechi Wind Project in Texas. In 2012, Microsoft began implementing an internal carbon fee, saving 7.5m m3 of Co2. Individual departments must account for their energy use and pay a fee to offset any carbon emissions, with the fee going into an investment fund that Microsoft uses towards its carbon neutral plan.
M A J O R B R A N D S U S I N G R E N E W A B L E E N E R G Y I N A B I G W AY
Japanese conglomerate Sony plans to have a zero environmental footprint by 2050. Their CD manufacturing site in Austria is one of the few in Europe that uses 100 percent renewable energy. For their plan, the music maker aims to reduce its annual energy consumption of its products by 30 percent by 2020, and use renewable energy to reduce its Co2 by 300,000 tons by 2020. According to the company, initiating those improvements in its production lines will easy any environmental footprint. For Google, the American technology company has been carbon neutral since 2007, with any emissions they make offset by buying carbon credits. With plans of being 100 percent renewable, Google claims it is 35 percent of the way there. In fact, the company is investing $2 billion in renewable energy projects, including a $300 million investment in 25,000 SolarCity rooftop power plants, and installing the world’s largest corporate solar panel at their Mountain View headquarters. In addition, Google is running cogeneration units at their corporate campuses. Furniture giant Ikea is set to become 100 percent powered by renewable
energy by 2020 . The company hopes to have produced 70 percent of its total energy consumption through renewables by the end of 2015. To do so, the company is committed to investing $1.1 billion into wind and solar energy. While Ikea currently owns wind farms in the United States, Canada, Denmark, France, Germany, Ireland, Poland, Sweden and the United Kingdom, the company is also installing 550,000 solar panels on 120 of their stores and warehouses around the world. Walmart is buying up more longterm power purchase agreements 15
R E N E WA B L E S and working with the renewable energy industry for more flexible contracts. The company currently has more than 335 renewable energy projects in operation or development around the world, ranging from on-site generation of solar, wind and fuel cells, to wind farms and wholesale energy purchases. Walmart is committed to going 100 percent renewable by 2020. According to the company, they’re 32 percent of the way there. What small businesses can do Believe it or not, smaller businesses can use their agility to incorporate renewable energy into their business. According to an Opus Energy survey,
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78 percent of small businesses are keen to be supplied with renewable energy. To go green, small businesses have an array of options such as fixing operational inefficiencies, assessing building infrastructure, and exploring alternative energy and technology. Small businesses can analyze electricity use and examine where savings can be made, and simple acts such as turning computers and lights off when not in use can save 5-10 percent off energy bills. Businesses can also apply for funding with the Green Deal, a government-backed initiative that helps businesses improve the energy efficiency of
M A J O R B R A N D S U S I N G R E N E W A B L E E N E R G Y I N A B I G W AY
their building, helping companies install green tech and repay the costs through energy bills over time. Businesses with spare land or space can look into ways of harnessing natural energy, through wind turbines or solar panels. In the UK, businesses who install renewable electricity generating technology receive an
income via the government’s Feed-in Tariff scheme. In addition, companies looking to explore alternative energy should look to biomass, which refers to organic materials such as wood or energy groups that can be used to generate power, as it now accounts for 85 percent of the UK’s renewable energy supply.
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TOP 10
TOP 10 STATES IN THE US TO INVEST IN SOLAR
Written by: Robert Spence
TOP 10
Are you considering an investment in solar? Two major factors to consider are the cost of electricity where you live, and the available financial incentives. Thanks to SUNMetrix, the following interactive grid parity map takes into consideration the level of solar radiation, the cost of electricity and the federal investment tax credit of 30 percent for the United States. To determine your return on investment, the online calculator allows users to gage how much solar energy they can produce, how much they can save based on their electricity rate, figure out the best way to finance a solar system, including quotes from highly-rated installers in local areas.
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New Hampshire 3 cents/kWh
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Connecticut 5 cents/kWh
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Designing a digital transformation Written by Lucy Dixon Produced by Kiron Chavda 31
S G N LT D
SGN has been through some enormous changes with the way it uses technology, managing to improve efficiencies while harnessing the power of innovation
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hen Andrew Quail took over as Director of IT for SGN four years ago his job, he says, was to ‘keep the lights on from an IT point of view’. As a gas distribution network, SGN keeps the gas flowing safely and reliably, making sure there’s availability of systems, availability of the supply of gas and – crucially – availability of engineers to respond to public reports of the smell of gas. Fast-forward to 2016 and it’s impossible to overstate the rise in importance of IT within SGN. Not only is it the backbone of the organisation when it comes to keeping gas customers warm and safe, it’s now driving SGN’s growth and efficiency strategy. Quail explains: “So my role now is to not only perform a supporting role to the business but to help drive excellence around customer service and innovative ways of working across our operational business. My role has changed
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massively in those four years to the point that I am required and expected to absolutely improve both the top line and the bottom line of the company. This has been driven by the changing demands and expectations of our customers, our business and the regulator and the wealth of opportunities now available given the disruption brought about by digital technology.” SGN is responsible for ensuring a safe and reliable gas supply to 5.8 million homes, looking after 74,000km of gas pipeline across the south of England and Scotland. Starting this year, SGN Natural Gas will construct new gas pipelines in Northern Ireland. Quail says: “If you smell gas, we have to be at your home within an hour and we achieve that over 97 percent of the time.” SGN is also undertaking an extensive update to its infrastructure, replacing the ageing pipes across the network. At the same time, it’s going through
3,700 Number of jobs supported by SGN
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Key Personnel
Andrew Quail Director of IT Andrew joined SGN in November 2008 as a senior Programme Manager. He had previously worked within a number of organisations including; Centrica, Capgemini Consulting, Tata Consulting, and TUI in a variety of IT roles. He has led multiple large scale business transformation and IT change programmes. He was appointed as SGN’s Director of IT in 2010 and is accountable for all IT services and the definition and delivery of all technology change.
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a huge change in the way it uses technology. Listening to Quail describe SGN’s digital transformation, it’s clear to see it has been through some monumental changes – while keeping costs down. A particularly tough challenge. The starting point, he says, was people. “I’ve had to bring in new people and I’ve also had to change our ways of working. I’ve started with the customer-facing side of our business with business solutions and business relationship management. So, just as SGN is focussing more and more on improving our customers’ experience, I need to do the same internally. The next wave of capability I’m developing is around the focus on architecture and data management which are fundamental given the different type of IT that’s being put in place now and the heavy leaning of our CEO and the company overall, towards technology innovation. Of course, just like SGN, our dayto-day operational performance has to be completely reliable and rock solid. It is vital that we don’t take our eye off the ball. So, bringing in new capabilities and more experience in these areas, while retaining and indeed reducing my overall operating cost base is really the challenge I’m facing but it’s something we’re achieving.” The new people Quail mentions
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S G N LT D
The Microsoft Cloud gives Special Olympics instant access to key performance and health data for every athlete, no matter where they are. Microsoft Azure and Office 365 help streamline the management of 94,000 events across 170 countries each year. So the focus can be on changing the lives of athletes, and that’s the true victory.
This is the Microsoft Cloud.
learn more at microsoftcloud.co.uk
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have been found in a variety of ways. “It’s not a quick process finding the right people for the long term and reorganising at the same time, so we’ve taken our time. We’ve been working with recruitment firms we know but also using networks and different methods of connection to professionals as well, including social media.” A similar journey has been undertaken when it comes to how SGN manages the relationships it has with suppliers and partners, taking time to expand its circle of knowledge with carefully chosen third parties who can help SGN on its journey of continuous improvement. Within Quail’s team, there has also been a change on how the employees are organised. He says: “I’ve got a group of people who look at future demand and work with our business on prioritising that work. Then there’s a group responsible for design and architecture and also a group responsible for projects, building and testing plus the traditional ‘run’ part of the organisation. We still have those capabilities, but now we are putting in place cross-functional and cross-skilled teams. So those guys getting together in a single team with different parts of the business to deliver the specific solutions that are of real value to our customers, faster and at lower cost, becomes the order of the day rather than just passing work from one team to another as we used to. This may seem obvious to many web-based or smaller organisations but for a more traditional utility organisation, w w w. s g n . c o . u k
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S G N LT D this has meant some real challenges in how and even where people work with each other. A good example is in customer service area where we are now delivering a number of initiatives in a much more agile and lean way. We are all working to a common outcome of improved customer experience through a number of connected initiatives and driven by the end customer. What I’m driving now is much more about collaboration, communication and cross-functional team working and that’s a fundamental part of changing our operating model longer term.” This increased speed of delivering solutions is a significant change for SGN and another of Quail’s projects is a huge migration of the majority of its services to cloud providers. “We’ve had our strategy signed-off by our board and it’s a very large two to three-year programme of IT transformation. Now that programme demands my team to work differently because it’s not just about moving services to another location it’s also about operating differently. Looking at far more automation around the management of IT, being able to start services up literally within minutes rather than months and managing our consumption based on what we use today, not what we bought several years ago.” Not all SGN’s services are moving to cloud providers, though, as Quail explains: “We’ve some parts of our services which are considered critical national infrastructure and so for now, those are services won’t be moving 38
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but I see that changing soon. Particularly when we see the leading IaaS providers such as AWS and Microsoft Azure now building major service centers in the UK for government IT services.” The advantages of the shift to the cloud are numerous, says Quail. “It gives me cost transparency that I don’t have at the moment. I’m predicting significant cost reductions through that efficiency. So there are financial benefits but more importantly, this strategy is driven by the demands of our business.” And SGN in 2016 is most definitely an innovative place to be, with an increasing focus on using technology throughout the business. “The innovative technology we’re now seeing being applied in our business is genuinely transformational. We’ve got an innovation team that has won so many awards, they almost need a bigger trophy cabinet. Our team is now putting robots into our pipelines for video-based inspection as well as repair work and we are also looking at using much more sensor monitoring of our network. So that poses a challenge to us my business as to how do you bring all those services and the detail together in a meaningful way?” The detail Quail is referencing to is the enormous amount of data produced by an increasingly technological company. He adds: “Vast quantities of video and sensor data are great, but how do you access, share and more importantly, use it? What’s very clear to me is my current IT architecture and IT service provision won’t be fit for purpose in a very
“Our team is now putting robots into our pipelines for video-based inspection as well as repair work and we are also looking at using much more sensor monitoring of our network.”
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Working in partnership with SGN to deliver the digital utility. AMT-SYBEX and Sigma Seven, part of Capita plc, have brought together two of the most innovative mobile solutions in the UK market to create a next generation mobile working solution for our clients. We have created a world first, a fully independent mobile worker solution with both highly-accurate GIS mapping & flexible digital processes. This gives our customers, like SGN, a “one-stop shop” solution for automating their business, improving data quality and timeliness, delivering greater efficiencies and improving customer service.
Powering the mobile-time enterprise Kony is the leading enterprise mobility provider with over 350 customers in 45 countries. We deliver solutions that empower today’s leading organizations to compete in mobile time by rapidly delivering multi-edge mobile apps across the broadest array of devices and systems. Customers choose from Kony Apps, pre-built applications designed to get you up and running quickly, or the Kony Mobility Platform, an enterprise-grade MADP + MBaaS solution that lets you quickly define, design, build, integrate, deploy, and manage exceptional app experiences. With either approach, you will lower TCO, ensure faster time to market, and evolve at the speed of mobile technology—guaranteed.
For more information on how to mobilize your enterprise, visit www.kony.com/mobiletime © Kony 2016
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short space of time unless we radically change what we do and how we do it. The merging of IT and OT is already happening across SGN and we therefore need to develop and provide the services that will grow that phenomenon. This means a fundamental change in how we run our IT services and indeed challenging and changing our thinking on what IT even is.” One of the major ways technology has affected SGN, is the way it works with customers, particularly when it comes to mobile devices. “The expectation from customers is they are updated instantaneously through social media when there’s a service disruption. This requires a digital platform which we just don’t have at the moment. This will be a huge transition for us as our customers now want real-time information. They want to be informed before anything happens and they want it through numerous devices, operating systems and mechanisms; not just a website.” This is something all customerfacing organisations are dealing with, Quail recognises, from retailers to large-scale utilities such as a gas distribution network like SGN. In order to provide this instant information to customers, SGN also has to change how it works in the field. It’s not just about having a sparkly new app or Twitter account, the data must be managed correctly in the first place. “We’re now introducing all sorts of other enablers digitally to our field workforce to help them capture, access and share data which currently, can be quite w w w. s g n . c o . u k
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£1bn SGN’s annual revenue
Mobile command centre
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onerous for them. Simpler tools to do that such as bar code reading and scanning devices through their mobile phones, which is then automatically uploaded to our cloud and when required, integrated to our enterprise systems.” But before this can happen, the workforce needs to find the problem they are dealing with and, once again, technology is playing a bigger part here. “We’re heavily reliant on finding our pipeline, which of course is below the ground in most cases and so having real-time and up-to-date map data of our assets is important. So that’s something again we’re now delivering through a mobile service this year, which historically would have been
collected back at the office, looking at paper maps. This detail will all be delivered real time to our employees’ new tablets and smartphones and they will have the facility to update that realtime, thus making our organisation safer as well as significantly more efficient,” says Quail. A practical example of how digital technology is driving efficiency at SGN. “These solutions will only get deployed to the business if they affect our top line or bottom line. We’re not just rolling technology out for technology’s sake.” It’s an exciting and challenging time to be in charge of technology at a company such as SGN. “I’ve had to completely change how I look at creating and delivering solutions and value into the organisation and I think any CIO w w w. s g n . c o . u k
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CISBOT in George St Edinburgh
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who is not approaching the role in a much more open-minded manner is really going to struggle and get left behind. We’re seeing completely different ways of delivering services in completely different cost models. I have to be open to completely new ways of working which I’ve never previously thought about. That’s not just about different demands from the business but a whole different way of leading an IT organisation.” Part of this different way of working is the way
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Quail works with vendors and suppliers. He explains: “We’ve had to segment our vendors between traditional IT vendors, such as IBM, Oracle, SAP and a new set of digital enablers like, Amazon, Deloitte and Microsoft, which has also completely transformed itself recently from behaving like one of the more traditional ‘mega vendors’ to an organisation that is really helping us on our digital agenda to set up services very quickly and at a very low cost. And we’re working with others, for example, we’ve got an app development platform run by a leading enterprise mobility company called Kony. Again, very low cost to deliver solutions; very agile and interactive with the business. It’s the same story with Sigma 7 field-based solutions for our field operatives. There is still a place for the traditional vendors to support our industrial, high availability systems of record but these digital enablers are the type of vendors we’re working with to learn how we do things differently. How we can deliver different type of solutions that perhaps we haven’t thought about before.” So, Quail says, a story was presented to SGN’s board about how the company needed to change to embrace the changing technology landscape, from mobility solutions, big data, cloud computing and social media to all the technology advancements such as robotics, drones, the Internet of things and more. And the board was, well, on-board. As an organisation, SGN is rising to the challenge of a digital transformation.
“I have to be open to completely new ways of working which I’ve never previously thought about. That’s not just about different demands from the business but a whole different way of leading an IT organisation.”
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Next gen
Written by: Nell Walker Prod
neration
duced by: Richard Thomas
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AL-RAHA GROUP FOR TECHNICAL SERVICES
Tareq Harb, from Al-Raha Group for Technical Services’s power systems division, tells us how his team’s sector has grown into a trusted supplier to Saudi Arabia’s foremost electricity company
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he Al-Raha Group for Technical Services – or RGTS – has enjoyed great success and quality of expansion since its establishment in 1986. Today, the company specialises in supply chain management services, repair and refurbishment of aerospace ground support equipment, special purpose vehicles, and power. Based in Saudi Arabia, it aims to become a hugely trusted supplier of parts, support services, personnel, and equipment to suit the requirements of its clients. The company prides itself on its integrity and focus on customer requirements, applying advanced technology, innovation, and solid business management to its professional relationships. It chooses to recognise its suppliers and clients as partners, ensuring respect from all sides, and cementing RGTS’s reputation as one of high-quality standards.
MIDDLE EAST
Power systems division One segment of RGTS’s expansive business is the power systems division, led by Business Unit Manager Tareq Harb, who explains the role of his sector within the RGTS umbrella: “Our main task is the supply, rental and maintenance of diesel generators,” he says. “We have both medium speed and fast speed engines; we supply from 50 up to 5,000 kVa generators, and on a rental basis, we offer from 50 to 2,500 kVa per single unit and up to 100MW for a complete power plant. This is what we have been doing since 2009.” Harb has worked with RGTS for a decade, and is now in control of the power systems division’s technical department: “Here we have around 40 employees; 35 of them are technicians and engineers, and the other five are an operations manager, a service manager, a sales manager, and two sales representatives.”
1200 Number of jobs to be supported by Al-Raha Group for Technical
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AL-RAHA GROUP FOR TECHNICAL SERVICES
“It requires some time to be a strong competitor, but with the aid of our future projects, we will achieve our goals” – Tareq Harb, Business Unit Manager
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The company finds most of its employees through the manufacturers from which it buys. Most of the power division’s generators come from Cummins Power Generation, and to a lesser extent, Volvo, and Kohler: “Employees we find via these companies are already trained; in the case of Cummins, at its headquarters in Dubai. Most of it is basic training, not deep technical training – that happens on the job.” Powerful partnerships RGTS’s power division’s main function is as a supplier for the Saudi Electric Company, Saudi Arabia’s foremost electric utility business. It maintains 19 power plants across the kingdom, and has a monopoly on the services it provides. It currently holds two contracts with RGTS, and is working towards another three: “The total value of the contracts is around 100 million Saudi riyal,” Harb explains. “The duration for these contracts is three years per contract, and is focussed on power generation for remote areas, specifically villages. For the past five years, we’ve worked almost exclusively with the Saudi Electricity Company.” However,
MIDDLE EAST
Harb’s division sees a future beyond its major partner: “Starting last year we’ve been working on other divisions. We are partnering up with the government and will receive some contracts for the supply and installation of generators for a few government ministries, as well as in the private sector. We already have a few small projects in the private sector. We’re not necessarily close to becoming international, but we’d like to be regional and start working in neighbouring countries.” Most of the team’s projects are based in the Northern Borders Province of Saudi Arabia, specifically the capital city, Arar. “We have a chief maintenance centre there, and this maintenance system controls all of the technicians and engineers in that area,” says Harb. “Plus we have our main offices here in Riyadh, our main workshop, and beyond.
AAGS Electrical simulator station
Generator systems control software w w w. r g t s g r o u p . c o m
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AL-RAHA GROUP FOR TECHNICAL SERVICES
“We have plans to extend into different parts of the private sector”
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The complex work is undertaken in Riyadh while the minor jobs are done on-site.” Looking to the future What sets RGTS’s power systems divisions apart from around seven other competitors sharing the market is its determination to grow. “We have plans to extend into different parts of the private sector,” Harb explains, “such as the construction industry. We also plan to start installing generators and standby generators in hospitals and medical centres, but we’re more interested in construction and petrochemicals. We’ll be putting in a big order for new generators, starting with 100 units for now, and expect to receive the order in the next couple of months. Then, once the units arrive, we’ll have new sales employees in place alongside our existing technical staff.” With regards to future improvement, the
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company is offering specific training courses for its technicians and engineers, and is hiring between five and 10 employees in new positions every year. It also allows partners like the Saudi Electricity Company the chance to visit its facilities, which strengthens the relationship. Harb concludes: “Within the Saudi Electricity Company, we are a strong competitor; outside of this, we are progressing more slowly. It requires some time to be a strong competitor, but with the aid of our future projects, we will achieve our goals.�
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O an
IPS AUSTRALIA:
A RELIABLE SIDEKICK
OEM service provider IPS Australia uses dependability nd top-notch customer service to thrive in the industry
Written by: Eric Harding | Produced by: Vince Kielty 57
IPS AUSTRALIA
A
lthough rotating equipment is among the central processes of the oil and gas industry, its importance can never be underestimated. But IPS Australia is using its small stature in a specialised industry to its advantage. An independent service provider representing a number of global original equipment manufacturers (OEM), IPS Australia provides sales and service to a wide range of customers, specifically for highspeed rotating equipment such as turbo compressors, steam turbines, reciprocating compressors pumps and more. “Rotating equipment is the heartbeat of any process,” said IPS Australia managing director Geoff Yeoman. “Wherever there’s a manufacturing process, typically at some stage of the process, rotating equipment is used. We provide crucial support for that equipment. “If an LNG plant or refinery’s gas compressors aren’t operating, they lose production. As you can imagine, there’s a huge cost to customer in those circumstances. 58
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So there is a very big focus on reliability and availability of those machines.” A SPECIALISED O P E R AT I O N Originally part of Germany’s MAN Group until 2008, IPS Australia provides on-site service throughout Australia, New Zealand and the Pacific Islands. The company also
AUSTRALIA
Dynamic balancing
administers market support in sales of new OEM equipment and spare parts, as well as workshop and service centre repairs. With goals of growing and sustaining excellence, IPS Australia’s core focus on service and maintenance, as well as its agility within the market to respond quickly, has helped make growth come to fruition.
This has led to a new, larger facility in NSW to be closer to its customers north of Sydney. The company is continuing to improve its capabilities and offerings to customers, while expanding its reach. In addition, IPS Australia has a regional approach and is close to the customer to reduce response times and increase efficiency. w w w. i p s a u s . c o m . a u
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IPS AUSTRALIA
Field service
AUSTRALIA
FRIENDS IN H IG H PL ACES IPS Australia’s customer base ranges from high end LNG companies to steel manufacturing, power generation, petrochemical wastewater, food and beverage, and other enterprises. With prominent partners such as Atlas Copco Gas& Process Division, GE Oil and Gas, Mitsubishi, Burckhardt Compression, Ferrum AG among others, IPS Australia is a credible player in the market. Yeoman compares these highprofile relationships to a marriage. “You have to nurture these relationships and can never take them for granted,” he said. “We work very hard to make certain we maintain the required standards and represent their product and brand in the best way possible. “When you’ve got partners like these that put faith in you to represent their brands, it gives you a lot of credibility in the market. We view our OEM partners as equally important as our customers. One of my main tasks is to keep those relationships on track.”
Workshop
With a constantly changing market in the steel industry and refining business which were once one of IPS Australia’s top customer bases, the sector has fallen on hard times in recent years. But while these industries have diminished, there has been large investment in LNG. “Geographically, the customer base has changed,” said Yeoman. “There’s a big focus in Queensland with the LNG facilities on Curtis Island, in Darwin and Western Australia.” w w w. i p s a u s . c o m . a u
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IPS Business Managers
P L A N A C C O R D I N G LY Planning is a large part of the process for major LNG or other energy projects. The process typically begins at least 12 months in advance with an audit inspection, the procurement of the critical spare parts, and planning the scope of work. 62
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IPS Australia works very closely with its customers on the planning aspects of their major shutdowns. “The success to any of these major shutdowns is certainly in the planning,” said Yeoman. “It comes with a cost, but when you compare the cost to days of lost production, it is insignificant.”
ADDING VALUE THROUGH AFTERMARKET SERVICES You are at the heart of meeting global energy needs. We make sure your equipment doesn’t skip a beat.
Find out more about our Atlas Copco Gas and Process Aftermarket solutions at www.atlascopco-gap.com/aftermarket or visit our strategic cooperation partner in Oceania, IPS at www.ipsaus.com.au.
WELL OILED MACH INE Several factors separate IPS Australia from the competition. With so many original equipment manufacturers in Australia, IPS Australia’s smaller size actually works in its advantage compared to larger corporations. “Their systems of operations are very much in that large corporate vein,” said Yeoman. “They’re very rigid in the way they do business.” With the recent downturn in the oil and gas, as well as mining
industries, there has been a big focus on cost from IPS Australia’s customers. But even though being more cost efficient is one benefit to customers, they are generally more concerned with reliability. “I think we have a much stronger focus on customer service, and we’re certainly a lot more agile,” said Yeoman. “We’re able to respond and react much quicker, and we have a very close relationship with our customers and regional business support, so customers w w w. i p s a u s . c o m . a u
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Field service
know who they’re dealing with and have that relationship. “Some companies have moved to requiring ‘critical maintenance’ only, where they run the equipment with minimal maintenance or it until it breaks; which, in my experience, it inevitably does. That’s when they really need a support company like IPS to respond in the shortest possible time to get them up and running.” The industry is cyclical. Currently, 64
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it’s the oil refineries that are having the most success. IPS has recently completed a couple very large shutdowns for Australian refineries, and will do work on two more later this year. TEC H N O LOGY FO R PEOPLE One of the biggest investments IPS Australia makes is in the right kind of people. However, there are some
AUSTRALIA
technologies that assist with having the ideal personnel, such as laser alignment technology balancing equipment, on-site diagnostics, machine diagnostics, laser scanning for reengineering and quick reverse engineering, various software packages for design and drafting. “The market is very broad, but the rotating equipment in itself is a very specialised field, and obviously requires special skills — particularly for our field service and workshop personnel,” said Yeoman.
“The level of detail that is required to ensure the service and maintenance commissioning on these machines is significant.” A BRIGHT FUTURE Aside from moving into its new larger facility with more crane capacity, the next step for IPS Australia is to invest in high-speed balancing. Although it’s not yet available in Australia, there is a lot of interest in having it despite it requiring a significant investment.
“The level of detail that is required to ensure the service and maintenance commissioning on these machines is significant.” – IPS Australia managing director Geoff Yeoman w w w. i p s a u s . c o m . a u
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Field service
“The thing that makes it achievable for us is our OEM partnerships. They will support it, they will utilise it and there is a lot of interest in the market for it. “It creates a lot of added value to the customer,” said Yeoman. “Often what customers do these days is instead of having a standby machine, they hold critical spare parts, and the rotating elements are always amongst that. “If they need to do refurbishment 66
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of a rotor, they need to send that to Europe or the U.S., but that increases the risk profile for their business significantly. If something happens during the entry period, they are going to be out of production for a long time. “But if that work can be done in Australia, it certainly reduces that risk profile to the customer, and therefore has significant added value to them as a business. That’s the next logical step forward for us.”
AUSTRALIA
Company Information INDUSTRY
Energy / Manufacturing HEADQUARTERS
Dee Why, NSW - Australia E S TA B L I S H E D
1975 ABOUT
The company is constantly looking to grow both organically and inorganically, and has excellent backing from our shareholders. If an opportunity makes sense as a business that requires investment, Yeoman believes its partners will certainly support it. “There’s a lot happening in terms of relocation and expansion,” said Yeoman. “For us, it’s a very positive message in a negative news world at the moment. We are growing, we are investing. We are increasing and improving our capabilities and therefore offering to our customers. It’s an exciting time for us.”
IPS Australia was established 1975 and is the largest independent service provider for rotating equipment in the region. The company provides the highest quality professional sales and service for all rotating equipment needs in Australia, New Zealand, PNG and the Pacific Islands
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THE BRAZILIAN
ASSOCIATION OF INVE ENERGY SELF-PRODU Written by: ABIAPE | Produced by: Carolina Majer
ESTORS IN UCTION
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ABIAPE
T
he Brazilian Association of Investors in Energy Selfproduction (ABIAPE) was established in November 2004 to protect the rights and interests of the energy self-producers in Brazil. Its creation was prompted by a suggestion from President Dilma Rousseff, the then Minister of Mines and Energy, that the big industrial
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consumers of self-generated power come together in a specific association to facilitate dialogue with government agencies. Today, ABIAPE represents Brazilian´s biggest energy selfproducers, which work in the aluminum, agribusiness, mining, steel, cement, power, and pulp and paper segments. They are:
BRAZIL
ABIAPE’s team
Together, these companies possess 7,205 MW of installed capacity (37 hydropowerplants, 18 thermoelectric plants and 8 small hydroelectric plants), 1,011 MW under construction (Belo Monte), and 528 MW in projects with concessions granted. The energy generated by this select group equates to approximately 7% of
Brazil’s total electricity consumption and 20% of the industrial consumption. ABIAPE members are constantly analyzing ways to better meet their energy needs, and the Association’s duty is to promote studies that assist their decisionmaking. There is a continual focus on the efficient use of energy w w w. a b i a p e . c o m . b r
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ABIAPE
resources and the evaluation of new supply alternatives. Currently, there is particular interest in the development of clean energy sources such as wind, small hydropower plants, cogeneration from natural gas, and selfimportation of liquefied natural gas. During its eleven years of operation, ABIAPE has been working to raise competitiveness, environmental responsibility, and supply security for the self-producers. Today the selfproduction of energy is a key competitiveness point within Brazilian industry, ensuring lower costs, risk and volatility, and, consequently, maximizing the efficiency of the energy consumption.
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Headquartered in Brasilia, the Association has a strong presence in monitoring, drafting, and revision of the legal framework. These points, combined with the constant monitoring of regulatory threats, are strategic to maintain the competitiveness of energy selfproduction. Seeking to differentiate itself, ABIAPE has included market intelligence activities in its Action Plan since 2010. The goal is to provide relevant, compiled, and analyzed information for its members, supporting the decision-making in an accurate and reliable way in the face of market opportunities, business strategy, and development of advanced metrics. The Association has a specialized staff which regularly produces technical documents prepared in interactive tools that allow a detailed and objective analysis of key market information. Technical notes and newsletters are produced by analyzing specific issues related to the energy and environmental area, bringing conclusions and
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President of FASE and ABIAPE in ABCE’s juridical seminar
ABIAPE’s presentation
recommendations for the members. ABIAPE also conducts individual technical meetings amongst its members to pass on information and monitor main topics. It is an 74
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obligation of the Association to keep the members as well informed as possible. Another highlight is the participation in public hearings
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ABIAPE’s vice-president in renewable energy event
promoted by government agencies. ABIAPE prepares technical contributions – elaborated amongst the members – to defend the interests of the self-producers in
major discussions in the energy and environmental sectors. Finally, it is necessary to emphasize the important role the Association has in various w w w. a b i a p e . c o m . b r
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ABIAPE
ABIAPE’s team visits a social project from BAESA
industry forums. Currently, ABIAPE heads the Power Association’s Forum (FASE), maintains the vicepresidency of the Power Sector Environmental Forum (FMASE), coordinates various working 76
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groups, and actively participates in the Forum of Business Associations Pro-Development of the Natural Gas Market (Gas Forum). These forums, from the collective work, have enabled important developments in
BRAZIL
Company Information NAME
ABIAPE - Brazilian Association of Investors in Energy Self-production INDUSTRY
Energy HEADQUARTERS
Brasília, DF - Brazil E S TA B L I S H E D
November 2004 NUMBER OF MEMBERS
10 KEY PEOPLE
President:
Brazil´s energy sector. ABIAPE is committed to promoting the interests of energy self-producers in order to ensure the competitive and sustainable development of Brazil.
Mário Luiz Menel da Cunha Vice-president: Cristiano Abijaode Amaral Vice-president of Institutional Relations: Marcelo Moraes
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