Energy Digital Magazine April 2020

HOW SUSTAINABILITY DRIVES THE COFFEE INDUSTRY www.energydigital.com

APRIL 2020

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LEADING ASIA PACIFIC’S ENERGY TRANSITION Nuclear plants by power capacity

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FOREWORD

W

elcome to the April issue of

competing with fossil fuels as a

Energy Digital Magazine!

clean power source to replace coal

T:297 mm

In this month’s cover story, we spoke

in the region,” says Turton.

with Clive Turton, President and CEO

Elsewhere, we learned from Julie

of Vestas Asia Pacific, a diverse

Gallacher, Sustainability Lead at

region which is experiencing an

Nespresso UK, how the company is

exciting energy transition. Currently

incorporating sustainability into

the largest wind turbine

every cup of its coffee. Also in this

manufacturer in the world, Vestas is

issue, SAP describes how its ‘Cloud

poised to enable the further

for Utilities’ programme is unlocking

development of sustainable energy

new market potential.

with cutting-edge technology and a

This edition’s Top 10 takes a look at

corporate strategy forged through years of industry experience.

the nuclear power stations with the highest nameplate capacity in the

“Asia Pacific is a high growth

world, from Japan to Canada,

market; the most important market

France, the Ukraine and more.

for growth in the global energy

Do you have a story to tell?

market. By 2040, the power market here will be larger than the rest of the world’s combined. As the

Please get in touch at:

william.girling@bizclikmedia.com

economics of renewables improve,

Enjoy the issue!

wind and solar are increasingly

Will Girling

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CONTENTS

10 THE ENERGY TRANSITION OF ASIA PACIFIC

USING TECHNOLOGY TO CREATE A MORE SUSTAINABLE SUPPLY CHAIN

22

32 Bringing sustainability to every cup

54 Nuclear plants in the world How Pernod Ricard is driving sustainability in the drinks industry

44

72 The biggest sustainability and energy events

76 Watercare Services

94 BP

112 SAP AG

128 Nordex North America

142 Stockholm Data Parks

ENERGY MANAGEMENT

10

APRIL 2020

THE ENERGY TRANSITION OF ASIA PACIFIC As Asia Pacific’s power demands and potential for energy production continue to grow, we discuss the region’s energy transition with Vestas’s regional President and CEO, Clive Turton

EDITED BY

MARCUS LAWRENCE w w w.e ne rgydi gi ta l. com

11

ENERGY MANAGEMENT

A

sia Pacific represents one of the most diverse markets on practically every level, and its energy sector is no different. With the

region set to become a technological powerhouse,

the sleeping giants of its developing economies are increasingly positioned to capitalise on the region’s own growing demands for energy and the world’s imperative to convert to renewable energy sources.

We caught up with Clive Turton, President and CEO of Asia Pacific at renewable energy leader Vestas, to discuss the intricacies of the region’s shift 12

to renewables, the firm’s exciting work in Vietnam and how it relates to the wider region’s prospects, and the cutting edge technology and strategies that are making it possible.

TELL US ABOUT YOURSELF AND YOUR ROLE AS CEO OF ASIA PACIFIC AT VESTAS I grew up in Australia and have been living overseas for more than 20 years, living and working in the US and Europe before I made my home in Singapore and the Asian region. Having begun my career as a corporate lawyer in Sydney, I transitioned across to banking where I ran the Energy and Infrastructure Group for ING Bank in Hong Kong and, since then, have managed a number of energy businesses in the region before joining Vestas as Asia Pacific CEO in early 2017.

APRIL 2020

13

“Asia Pacific is a high growth market; the most important market for growth in the global energy market. By 2040, the power market here will be larger than the rest of the world’s combined�

Clive Turton, President and CEO, Asia Pacific, Vestas

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1:41

15 I feel extremely lucky to be a regional

energy projects across the region –

leader for the world’s largest renew-

from Australia one day to Mongolia

able energy company. We are at an

the next, Japan, Korea, Vietnam, India

immensely exciting time in the history

and so on. We are in constructing,

of energy production and to be part of

operating and developing renewable

a world-changing energy company in

energy projects across 15 countries,

an industry that changes, grows and

and the growth in activity level for our

adapts on a daily basis is very exciting.

business over the last few years has

I am also very lucky to be supported

been amazing.

by a fantastic team of smart, driven

I am extremely passionate about the

people who share my passion for the

region, and even more so about the

renewable industry and for building

regional prospects for the renewable

a clean, sustainable energy industry

energy industry. Renewables are

in Asia. As the CEO of Vestas, I get to

abundant, clean, and increasingly cost

see close up the birth of new clean

effective, and it is clear they will play a w w w.e ne rgydi gi ta l. com

ENERGY MANAGEMENT

16

vital role in the region meeting its fast-

growth in the global energy industry.

growing demand for energy.

By 2040, the power market here will

Vestas has always been a leading

be larger than the rest of the world’s

player here, and we’re now uniquely

combined. As the economics of

positioned to capitalise on this growth

renewables improve, wind and solar

and further expand our leadership as

are increasingly competing with fos-

a renewable solutions innovator.

sil fuels as a clean power source to replace coal in the region.

HOW DOES ASIA PACIFIC DIFFER FROM OTHER REGIONS WHERE VESTAS OPERATES?

time zones and more than 20 lan-

Asia Pacific is a high growth mar-

guages across the 15 markets in

ket; the most important market for

which we operate here. We also

APRIL 2020

However, it is also a highly complex and diverse market. There are 11

“ Intertidal projects are located in the shallow near-shore waters, and use onshore wind technologies to harvest wind resources from the sea”

WHAT FACTORS ARE DRIVING THE RATE OF GROWTH IN VIETNAMESE POWER CONSUMPTION OVER OTHER SOUTHEAST ASIAN COUNTRIES? Southeast Asia is primed to become the engine of global economic growth. The region’s electricity consumption has grown by nearly 6% annually since 2000, double the

Clive Turton, President and CEO, Asia Pacific, Vestas

world’s average.

With a growing population of 96.7 million, Vietnam is at the forefront of power demand in the region. Its electricity consumption has increased by 13% annually since 2000. Electricity peak demand is growing at 11% annually as investments in the country

serve a diverse customer base,

continue to accelerate. Industries are

from mature markets like Australia

adjusting their supply chain to be less

to emerging markets like Vietnam

reliant on neighbouring China, and

and Thailand, and then there is the

are attracted by lower labour costs

enormous potential of India. Our

in Vietnam. Vestas is leading the pack

customers range from utilities to

in developing new wind projects in

independent power producers and

Vietnam – we closed four of the five

financial institutions, with a variety of

deals last year in this market and we

experience in the wind energy space.

are now deep into execution of new

Due to this uniqueness, we need to

projects. Vietnam has a feed in tariff

set up a very fast-paced and agile

and a government that is supportive

organisation to tailor our solutions to

of renewable energy. There is con-

customer needs.

siderable interest in this market from w w w.e ne rgydi gi ta l. com

17

ENERGY MANAGEMENT

18

“ Southeast Asia is primed to become the engine of global economic growth.

The region’s electricity consumption has grown by nearly 6% annually since 2000, double the world’s average”

investors the world over and it has the opportunity to be a regional leader in the renewable energy industry.

COMPARED WITH OTHER RENEWABLE ENERGY SOURCES, WHY IS WIND THE BEST OPTION FOR VIETNAM’S ENERGY TRANSITION? Vietnam has some of the strongest wind resources in the Southeast Asian

Clive Turton, President and CEO, Asia Pacific, Vestas

region. Endowed with more than 3,000km of coastline, the country has 24GW of estimated technical potential for onshore wind. Average wind speeds in Vietnam are 7.2m/s

APRIL 2020

This would be the same story though in a lot of Vietnam’s neighbours.

Wind and solar are fast becoming the cheapest forms of new energy in markets throughout the region and across the world. Countries that previously relied on imported fossil fuels, sending money overseas month after month, are now realising that they can tap their own indigenous wind and solar resources to deliver clean, cheap power to consumers without the need to fund fuel shipments.

19 at 100 metres in height in the top 10% of windy areas.

In Vietnam, costs for wind and

HOW DOES AN INTERTIDAL WIND FARM DIFFER FROM TRADITIONAL OFFSHORE PROJECTS? Intertidal projects are located in

solar dropped below those of coal in

the shallow near-shore waters, and

2017, meaning renewables are now

use onshore wind technologies to

the cheapest form of new power

harvest wind resources from the sea.

generation on a Levelized Cost of

Turbines are built on top of raised

Energy (LCOE) basis. While the

foundations, using the same founda-

average LCOE of coal is projected to

tion technology as onshore wind

remain at current levels through

farms. The tower, however, is coated

2030, wind and solar LCOE are set

in a special paint to prevent corrosion

to continue to decline as the tech-

in the marine environment.

nologies mature. We project that

This technology reduces disruption

wind and solar will be cheaper than

to farming and other activities on

hydropower around 2022.

land close to the shore, but does not w w w.e ne rgydi gi ta l. com

ENERGY MANAGEMENT

require the capital investment for fullscale offshore wind development.

It is popular in Vietnam where there are tidal flats surrounding a lot of the coastline in the Mekong Delta where there are good wind resources.

WHAT ARE VESTAS’S CURRENT GOALS FOR CAPACITY AND OPERATIONS GROWTH BOTH IN VIETNAM AND THE SOUTHEAST ASIAN REGION? HOW CLOSE IS THE COMPANY TO MEETING THOSE TARGETS? Currently, Vestas operates more 20

than 80MW of wind assets in Vietnam and won an additional 200MW of orders in 2019. By virtue of our mature project execution record and service set up, we are already the dominant wind solution provider in the market. It is our goal to maintain our leadership position in both Vietnam and the Asia Pacific region as a whole.

As our business in the region grows, we will continue to strengthen relationships with key customers, provide innovative and advanced energy solutions, and offer market leading products suited to the Asia Pacific region.

APRIL 2020

In the end though, our goal for Vietnam, Southeast Asia and every market that we operate in around the world is to reduce reliance on polluting fuels and bring abundant clean, affordable renewable to the markets for the benefit of consumers, of industry, and ultimately the whole planet.

WHAT ARE YOUR MAIN PREDICTIONS FOR THE FUTURE? Wind and other renewable energy can play a bigger role in helping Vietnam meet its increasing energy demand, and bring clean, cheap, reliable energy to industries and communities.

More ambitious wind development targets, clearer future procurement framework post 2021 FiT expiry, and a fit-for-purpose PPA could help Vietnam move away from its reliance on coal, attract more foreign investment, and bring jobs and cheaper/ cleaner energy to its communities.

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21

TECHNOLOGY

USING TECHNOLOGY TO CREATE A MORE SUSTAINABLE ENERGY SUPPLY CHAIN 22

Dassault Systèmes takes a look at how businesses can combine profitability and sustainable supply chains

APRIL 2020

23

WRITTEN BY

JOHN KITCHINGMAN, MANAGING DIRECTOR, EURONORTH, DASSAULT SYSTÈMES

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TECHNOLOGY

24

S

ustainability is often seen as

consumer expectations of quality and

a cost by businesses. Many

value. This is only able to happen when

leaders believe that you must

visibility and efficiency is improved

sacrifice profitability to achieve a sus-

throughout the entire supply chain.

tainable value network, but this is not

This oversight improves collaboration

the case. On the contrary, improved

between stakeholders, from manufac-

efficiencies across the value network

turing all the way to retail. It also means,

lead to goods that are delivered faster

logistically, that you are being as effi-

and at a fraction of traditional emission

cient and ‘carbon-friendly’ as possible.

levels, which in turn, means less waste

Technological developments mean

and better resource management.

that every step of the supply chain can

A greener supply chain is one that

be created and optimised virtually, as

delivers greater environmental creden-

each party involved can be monitored

tials while fulfilling ever-increasing

and all operations can be assessed in

APRIL 2020

25

the virtual world. This reduces a company’s reliance on road testing its new processes and it also helps them to better predict and manage efficiencies.

SOLVING THE OVERSTOCK PROBLEM One big cause of supply chain emissions is overstocking, which takes up valuable space in warehouses and leads to increased waste. Retailers can minimise this problem by improving forecasting capabilities using virtual project management solutions. This

“ One big cause of supply chain emissions is overstocking, which takes up valuable space in warehouses and leads to increased waste”

enables retailers to anticipate demand w w w.e ne rgydi gi ta l. com

The Only Progress is Human CLICK TO WATCH | 8:12

27 for seasonal goods and optimise inven-

virtually to evaluate different scenar-

tory levels to avoid overstock.

ios and define the best options.

This advanced warehousing planning also provides energy-saving

USING DATA TO INCREASE EFFICIENCY

capabilities such as task prioritisation,

It is also possible to utilise data ana-

self-replenishing and travel sequenc-

lytics to increase fuel efficiency by

ing. All of this helps retailers to

determining the best ways to assign

optimise operations and react quickly

truck delivery routes. Data can be

and efficiently to real-time trends and

used to create a profile of each

returns, which again reduces over-

vehicle’s delivery route, including

stock. Integrating data with logistics

the number of stores and trips, route

and warehouse management pro-

density, traffic congestion and topog-

cesses can also improve the transport

raphy. Businesses can use this profile

and warehouse networks. Once again,

to identify the best route for the vehi-

this can be assessed and optimised

cle to take to save as much time and w w w.e ne rgydi gi ta l. com

TECHNOLOGY

“ Adoption of the circular supply chain is being driven by technologies such as IoT, advanced data analytics and realtime data capture, which break down organisational silos and increase collaboration and communication�

28 energy as possible. Fuel is usually the biggest transport cost, so managers need to start with reducing the number of trips. End-to-end supply chain transparency and optimised planning allows the combination of different goods headed for the same places in a single trailer.

These initiatives need to be backed with the right technological tools – data analytics, traceability of suppliers and travel routes, and digital systems giving an overview of the supply chain are all essential. They are already becoming commonplace APRIL 2020

29

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TECHNOLOGY

for retailers and making their way into more industries by the day to help solve the carbon emission challenges of the industry, but also to optimise processes and increase transparency of all operations across the value network.

CREATING A CIRCULAR SUPPLY CHAIN The traditional linear supply chain model has three easy to define stages: make, use, and dispose. This is simply unsustainable as it leads to lots of 30

waste and, as we know, the world’s resources are finite. As a result of this, modern supply chains need to transition to a circular supply chain

“A greener supply chain is one that delivers greater environmental credentials while fulfilling ever-increasing consumer expectations of quality and value. This is only able to happen when visibility and efficiency is improved throughout the entire supply chain”

APRIL 2020

TECHNOLOGY’S ROLE IN A MORE SUSTAINABLE FUTURE New technologies are making a sustainable supply chain far more attainable for businesses. By utilising these technologies, it will be possible for businesses to reduce pollution and their carbon footprint, creating a much more sustainable supply chain and enabling them to make a positive impact on many of the world’s pressing environmental issues. Employing the advice and expertise of trusted technology partners here will help promote these efforts and spell a promising future for sustainability in the corporate world.

The impact of technology on the model. This model focuses on keeping

supply chain isn’t just good for the

resources in use as long as possible,

planet, but good for business as well.

extracting the maximum value from

Modern consumers are far more con-

them whilst in use, then recovering

scious about the sustainability of the

and regenerating products and mate-

businesses they deal with and are far

rials at the end of each service life.

more likely to spend money with a

Adoption of the circular supply chain

company leading the way, while

is being driven by technologies such as

increased efficiency, transparency

IoT, advanced data analytics and real-

and speed are always welcomed by

time data capture, which break down

the consumer.

organisational silos and increase collaboration and communication. w w w.e ne rgydi gi ta l. com

31

S U S TA I N A B I L I T Y

Bringing sustainability to every cup

32

Julie Gallacher, Sustainability Lead at Nespresso UK, explains how sustainability should inform every aspect of the coffee industry – from bean to cup

APRIL 2020

WRITTEN BY

WILL GIRLING

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33

S U S TA I N A B I L I T Y

N

espresso’s story began in 1976 when Nestlé employee Eric Favre patented a coffee-

making system that brewed using single-use capsules of coffee grounds.

Although the invention failed to capture market interest at first, eventually the Nespresso company was formed in 1986 and the system began to pick up momentum in Europe following a product trial in Japan. It has since become one the world’s premium coffee brands.

Joining the company in 2012, Julie 34

Gallacher has been instrumental in Nespresso UK’s sustainability drive.

Throughout her tenure at

the services themselves, often dove-

Nespresso, Gallacher has realised

tailed with infrastructure, are

that building momentum for sustaina-

enhanced and developed as a result.

bility in business consists of two

Perhaps the most significant change

things: 1) exposure and 2) engage-

that has impacted global business in

ment. “I work a lot with the marketing

recent years is consumer demand for

team to ensure the sustainability story

sustainability. As corporate strategies

is showcased externally, so our con-

across the board begin to incorporate

sumers know about our sustainability

targets and goals linked to the envi-

credentials,” she explains. “But my

ronment, often the best way to attract

work also involves engaging everyone

customers and talent to a brand is by

inside the company to understand and

having solid ‘green’ credentials. “I

be part of the initiatives.” This isn’t just

wanted to work with brands that I felt

to bolster participation rates; greater

passionate about and had a sense of

uptake and engagement means that

purpose,” said Gallacher. “Apart from

APRIL 2020

“My work also involves engaging everyone inside the company to understand and be part of the initiatives” — Julie Gallacher, Sustainability Lead, Nespresso UK

35

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The Nespresso AAA Sustainable Quality™Program CLICK TO WATCH | 3:06

37 the fact that I thought it was great-

it is also recyclable,” she explained.

tasting coffee, Nespresso really

Combining quality packaging, a

stands for something.”

great product and an eco-friendly

Indeed, the company’s recycling

strategy provided a winning formula

initiative began 30 years ago in

- one which acknowledged the com-

Switzerland with the launch of a ded-

pany’s responsibility to run a

icated scheme driven by an essential

sustainable business and maintain

manufacturing material: aluminium.

a premium product.

Each single-use capsule produced

Though Nespresso is a small

by Nespresso is made from alumin-

player when it comes to the use of

ium, which is renowned for its highly

aluminium – compared to businesses

reusable nature. “It actually protects

in other sectors such as the automo-

the quality and the freshness of the

tive industry – the company has

coffee and also works really well

adopted and promotes a sustainable

with machines, but, very importantly,

approach to sourcing it. “We are w w w.e ne rgydi gi ta l. com

S U S TA I N A B I L I T Y

founders of the Aluminum

“It actually protects the quality and the freshness of the coffee and also works really well with machines, but, very importantly, it is also recyclable”

38

— Julie Gallacher, Sustainability Lead, Nespresso UK

APRIL 2020

Stewardship Initiative,” said Gallacher.

“We established a standard for sustainable sourcing that protects indigenous peoples’ rights, biodiversity, and ensures that the factory making the aluminium is powered with renewable energy and has water stewardship practices in place.”

Water usage, in particular, is a crucial aspect of sustainability that can often

39

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S U S TA I N A B I L I T Y

be overlooked. Whether it is used to wash harvested coffee beans or irrigate crops, water is the fundamental raw material from which the coffee industry is built. Scarcity of it would be, therefore, a disaster, not just for the industry, but also for the communities who farm the coffee beans.

A 2009 study by the UN Food and Agriculture Organisation found that for every cup of coffee it takes 140ltrs (37 gallons) of water to grow, process and transport it. Such a startling fig40

ure requires industry attention and Nespresso has already started to address it with three of its factories in Switzerland. “They’re all modern,” explains Gallacher. “They capture rainwater and then repurpose it. It’s achieved almost a 30% reduction in water use per tonne of product manufactured.” Back at the farms, Gallacher says that the company is also helping to build community mills, whereby the farm owners can wash their coffee beans using a controlled and carefully managed water supply.

Sustainability best-practice can be furthered in creative and diverse ways, with a company’s choice in APRIL 2020

“It uses the exact amount of coffee grounds, water and energy required to make one cup of coffee; there’s no waste at all in that process” — Julie Gallacher, Sustainability Lead, Nespresso UK

41

w w w.e ne rgydi gi ta l. com

S U S TA I N A B I L I T Y

42

partnerships usually shaping the

coffee plants - which protects the

course of action taken. “No one per-

coffee trees, prevents soil erosion

son, no one company can effectively

and provides additional income for

address these issues,” stated

farmers - are solutions which

Gallacher regarding climate change.

Nespresso and its partner, Pur Projet,

“I think that multiple stakeholders

have developed.

have got to work together.”

In an industry that can sometimes

Nespresso has demonstrated this by

be maligned as not doing enough for

partnering with organisations like the

the environment, Gallacher is deter-

Rainforest Alliance and Fair Trade.

mined to reverse this trend in the

Planting trees to mitigate CO2 emis-

collective consciousness. “Coffee

sions and growing cash crops near

capsules aren’t bad for the

APRIL 2020

43

environment,” she claimed. “They are

required to make one cup of coffee;

equal to, and, in some cases, better

there’s no waste in that process.”

than other methods of making coffee.”

With a lot of innovations still to be

Attributing this to the company’s ‘pre-

introduced, the coffee industry

cision-consumption system’, she

should take note of Nespresso’s end-

emphasised that greater efficiency, in

to-end focus on mitigating waste and

combination with Nespresso’s com-

conserving resources.

mitment to recycling and ethical farming, meant that capsule coffees represented a much more sustainable option. “It uses the exact amount of coffee grounds, water and energy w w w.e ne rgydi gi ta l. com

CARBON REDUCTION

How Pernod Ricard is driving sustainability in the drinks industry 44

We speak with Pernod Ricard’s VP of Global Sustainability, Vanessa Wright, about the company’s 2030 sustainability roadmap and the initiatives driving change WRITTEN BY

APRIL 2020

M ARCUS L AWRENCE

45

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CARBON REDUCTION

O

wner and steward of many worldleading alcohol brands, including the likes of Absolut, Kahlúa, Campo Viejo,

Havana Club, Beefeater, the eponymous Pernod Anise and Ricard Pastis, and many more, Pernod Ricard is one of the largest alcohol producers in the world. Across complex global operations, the company has a history of ingraining sustainable and ethical practices across its decentralised model. In modern times, under increased pressure from both consumers and the competition, the business 46

is redoubling its sustainability and CSR programmes to ensure it is a leader in these environmentally and socially conscious times.

Pernod Ricard’s Vice President of Global Sustainability, Vanessa Wright, was keen to discuss the strategies and solutions precipitating the company’s reputation for sustainable business both today and in the future. “It goes without saying that this is nothing new for Pernod Ricard,” she attests. “We’ve got a long history in sustainability even though it hasn’t always been called that. We have an oceanography institute that’s over 50 years old, for example.” The firm recently completed its 2020 environmental roadmap, with Wright hailing the success of its reduction programmes for both carbon and water (20% and 30% cuts respectively).

APRIL 2020

“We’ve got a long history in sustainability even though it hasn’t always been called that”

Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard Today, the company is progressing with its 2030 environmental strategy, the Good Times from a Good Place initiative, which launched in March 2019. The focuses of the new roadmap are eightfold, with each point coming under one of four pillars: nurturing terroir, valuing people, circular making, and responsible hosting.

While the specific goals of each area of focus can be found here, they consist of: biodiversity, regenerative agriculture, equality and future leadership, shared knowledge and learning, packaging and waste, water balance and carbon-footprint, combating alcohol misuse, and w w w.e ne rgydi gi ta l. com

47

Meet Rob – The Power of Convivialité by Pernod Ricard – Be a Convivialist CLICK TO WATCH

|

3:22

49 responsible partying (an Erasmus

alignment with the UN’s Sustainable

Student Network partnership

Development Goals (SDGs), owing

launched 10 years ago to promote

both to their clear guidance and

healthy drinking habits among

strong links with consumer concerns.

European youth). Underpinning each

“We are a customer-centric business

of these focus points is the overarch-

and we recognise that, for custom-

ing desire to inspire joy through quality

ers, things are changing fast and

beverages without excluding consum-

they are looking for brands that are

ers who are increasingly passionate

going beyond profits,” she says. “Per-

about sustainable business opera-

sonally, I think we’re very lucky to be

tions. As Chairman and CEO Alexan-

in a position where we’re guardians

dre Ricard puts it: “We are 19,000

of these brands for a snapshot in

‘créateurs de convivialité’”.

time.” She highlights the 305-year-

Wright affirms that the roadmap has been constructed in close

old Martel and 219-year-old Chivas as examples of the historic nature of w w w.e ne rgydi gi ta l. com

CARBON REDUCTION

“To have built a strategy that involves more than 300 people, that the business has really taken ownership for, that we can be the agitators and conductors to really drive, is something I am very proud of”

opportunity. It’s about reducing waste and material use, creating greater efficiencies and strengthening our processes.” Sustainability done right is often a cost saver, such as in the reduced fuel consumption triggered by lighter bottles, and this is being extended at Pernod Ricard through a focus on circularity.

Championed by the Ellen MacArthur Foundation, the circular economy concept stands to minimise packaging production and waste by

50

Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard

ingraining recycling into the business-consumer relationship, and Pernod Ricard is rolling out the concept as a strategy

Pernod Ricard’s portfolio, and the sense of stewardship that Wright feels over its legacy.

Speaking of the 2030 roadmap, Wright’s excitement for the future is palpable. “The strategy has changed; it’s much broader and really touches every part of our business,” she says.

“That was what I set out to do with the strategy, making sure it isn’t something that sits to the side, shifting sustainability from being just about managing risk to being about APRIL 2020

for some of

its leading brands. “Absolut is one

we can make it as circular as possi-

example,” says Wright. “As a brand,

ble. The byproducts are sold on to

its mission for many years has been

feed 300,000 cows and pigs each

to become more circular and see

day, for example. We have also

things reused again and again.”

launched a limited edition bottle

Enabling this vision is simplified by

called Absolut Comeback, which is

the fact that Absolut’s bottles are all

really a campaign to celebrate

sourced from a single location, and

recycling, and those bottles are

Pernod Ricard maintains strong

made from 40% recycled glass.

relationships with its farmers which

Pernod Ricard’s efforts are not

allows it to influence their own

limited to brands where it has a direct

sustainability as well. “We have full

view of its supply chains, however.

visibility of Absolut’s supply chain,

Each supplier is compelled to commit

and at every step we look to see how

to the company’s CSR objectives through Bluesource, and the firm is working to bring the rate of its committed suppliers to 100%. “If they don’t, we won’t work with them. We’re going to have to be very clear on those commitments,” says Wright, adding that sustainability in supply chains represents one of the most significant challenges for the drinks industry’s environmental and ethical performance. This firm approach permeates through the whole corporate strategy, with its affiliates having been required to provide local action plans for fulfilling Pernod Ricard’s corporate vision by the end of last year. w w w.e ne rgydi gi ta l. com

51

CARBON REDUCTION

52

APRIL 2020

This is just a small sample of some of the ways Pernod Ricard is demonstrating how major players in the drinks industry can ingrain sustainability across its internal and affiliated operations. “I think it’s still

“We have full visibility of Absolut’s supply chain, and at every step we look to see how we can make it as circular as possible”

true to say that people don’t quite understand what we mean by sustainability or the breadth of it,” says Wright. “They don’t instinctively think about human rights and other topics, so that’s part of the work we’re doing

Vanessa Wright, Vice President of Global Sustainability, Pernod Ricard

as well; building training modules around a strategy and sustainability

Pernod Ricard, Wright is proud of the

to ensure everybody understands

successes it has enjoyed thus far.

how they can contribute.”

“To have built a strategy that involves

While a lot of work remains to be

more than 300 people, that the

done and the 2030 framework

business has really taken ownership

continues to take hold across

of, that we can be the agitators and conductors to really drive, is something I am very proud of. For our operations teams around the world, the sustainability plan is their plan.”

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53

T O P 10

Nuclear plants in the world 54

Energy Digital takes a look at the history and operations of the largest nuclear power plants in the world, ranked by energy generation capacity (MW) WRITTEN BY

APRIL 2020

WILL GIRLING

55

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T O P 10

5,200MW CAPACITY

56

10

Cattenom FRANCE

Construction for the Cattenom plant began in 1979 in Cattenom, France. Consisting of four pressurised water reactors (PWRs), each with a power output of 1,300MW, the site uses water from the Moselle River in combination with four cooling towers. Additionally, an artificial lake was created in Pierre-PercÊe to provide a greater supply of coolant. Two of the plant’s units were successfully commissioned in 1986 and 1987, with the third and fourth becoming operational in 1990 and 1991 respectively. The plant employs 1,200 full-time workers and supplements a further 1,000 during outages - periods where the reactors are powered down and maintenance is performed.

APRIL 2020

5,320MW CAPACITY

57

09

Paluel FRANCE

Placed within the French town of Paluel, Normandy, the plant provides employment to almost 1,250 people. With its capacity provided by four 1,330MW reactors, Paluel provides over 32 billion KWhs of electricity per year. Construction of the plant began in 1977, with the first and second units being commissioned in 1985, the third in 1986 and the fourth in the summer of the same year. The reactors use water from the English Channel as a source of coolant.

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Microsoft: a trusted digital transformation partner Throughout SA Power Networks’ (SAPN) significant transformation of its IT team and its transition from legacy platforms, software giant Microsoft has been a key partner every step of the way. Rather than a typical vendor-buyer relationship, Microsoft has worked collaboratively to ensure SA Power Networks maximises the value of investment in its solutions.

Collaboration empowered by Office 365 SAPN has adopted Office 365, utilising Teams to improve collaboration across the business with great success – the business helped SA Power implement its Future Operating Model in order to achieve operational excellence. SA employees have transformed the way they work through digital, utilised data to improve customer experience, gained smart insights into how the business can be run more efficiently, and improved communication and collaboration though open platforms.

An important use case of Office365 has been promoting onsite safety. Teams is an easy to use, mobile friendly platform that improves communication between field workers to reduce the number of incidents. Questions can be asked in real-time, even through photos, to gain answers quickly.

Other Office365 tools, SharePoint and Flow, have helped SAPN move from a paper-based to digital system, improving efficiency throughout the company’s procurement process.

Without the need to scan paper documents, and with all information at the fingertips of staff, the business has reduced the procurement timeline from months to weeks.

“We were early adopters of Office 365 and Microsoft have worked very collaboratively with us to ensure we maximise the value of the investment. We have really promoted the use of ‘Teams’ to improve col-

laboration across the organisation and it has been embraced by every group that has tried it.”

– Chris Ford, General Manager Innovation and Technology, SA Power Networks More than a software vendor As a trusted partner, Microsoft brings software engineering, research and development, solutions architecture and support, which would not come from buying an off-the-shelf solution. As such, Microsoft has helped SAPN to innovate through its technologies, formulating the best ways to navigate a complex digital transformation as a true enabler.

With SAPN having come on leaps and bounds implementing a modern workplace, Microsoft is also helping SAPN introduce SAP’s S4/HANA solution on Azure. This next-gen enterprise resource planning (ERP) solution is a truly mission critical application for SAPN. In addition, the partners are collaborating on a Virtual Power Plant project, which is funded by the South Australia government and aims to help South Australia ‘transition to a sustainable energy future’.

Lastly, Microsoft has been instrumental in moving SAPN’s data to the cloud, with all the time and cost efficiency that goes with it. Moving to Microsoft’s cloud-based solutions has also improved collaboration with external partners through secure sharing.

Explore how AI transforms industries and the society:

Learn More

5,460MW CAPACITY

59

08

Gravelines FRANCE

Using water from the North Sea as coolant, the Gravelines power plant is situated 12 miles from Dunkerque. Providing employment for over 1,600 people, it is the largest nuclear power station in Western Europe and holds the record for being the first station to generate over 1,000TWhs of electricity. Owned by Electricite de France (EDF), the plant has a 5,460MW capacity derived from six 910MW reactors. The reactors were constructed in batches of two in 1980, 1981 and 1985.

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T O P 10

5,700MW

Š Ralf1969

CAPACITY

60

07

Zaporizhia UKRAINE

Becoming the largest Eastern European nuclear power plant in 1995 following the completion of its sixth reactor, Zaporizhia is located in Enerhodar, Ukraine, on the banks of the Kakovka Reservoir. Zaporizhia is responsible for generating approximately 20% of Ukraine’s entire electricity supply, from six pressurised water reactors (PWRs). All six units were completed in a nineyear period (1984 to 1995). Following an application made by Energoatom - the nuclear power company operating the plant the first two units are currently being assessed for modernisation efforts in an effort to extend their operational lifespan.

APRIL 2020

5,875MW © Korea Yonggwang NPP

CAPACITY

61

06

Hanbit

SOUTH KOREA

Constructed in South Korea’s Jeollanam-do province, the Hanbit Nuclear Power Plant has six operational units ranging from 947MW to 997MW subdivided into three variants. Hanbit 1 and 2 use pressurised light water reactors (PWRs) built via South Korea’s ‘component approach’, which utilised domestic companies for auxiliary parts and contracted international designs for primary parts. Meanwhile, Hanbit 3 and 4 were constructed using entirely domestic sources, while Hanbit 5 and 6 were inspired by Ulchin-3 reactors - a Korean Standard Nuclear Power design.

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CREATING BUSINESS VALUE THROUGH SUSTAINABLE ENERGY Ensuring you have the best partner at your side.

Follow us

enelgreenpower.com

5,928MW

© Korea Ulchin NPP

CAPACITY

63

05

Hanul

SOUTH KOREA

Containing six pressurised water reactors (PWRs), Hanul Nuclear Power Plant located in Gyeongsangbuk-do is South Korea’s second-largest. The plant began construction in 1983 and became operational in 1988. After numerous developments, the latest of which was completed in 2018, the plant has a nameplate capacity of 5,928MW. The first Korean Standard Nuclear Power (KSNP) project, Hanul’s construction was part of a plan to attain a self-sufficient source of electricity. One of the sites - Hanul 3 - was the first to employ KSNP’s tech in 1998, which introduced a depressurisation system and superior chemical, volume and digital control.

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T O P 10

6,000MW CAPACITY

64

04

Yangjiang CHINA

The conception for China’s largest power station started in 1988, when the site in Yangjiang, Guangdong was selected for development. Once the project received approval from the Chinese Government in 2004, construction began in 2008, with the first ACPR-1000 reactor starting in September 2013. Employing six 1,000MW units to generate power, Yangjiang Nuclear Power Plant helped reduce the region’s coal consumption by 30,900kg and cut 80,800kg of CO2 emissions. One of the units - the fifth, called Yangjiang NPP - is also the first to adopt a Chinese control system: FirmSys.

APRIL 2020

6,430MW CAPACITY

65

03

Bruce CANADA

Located in Bruce County, Ontario, the 2,300 acre Bruce Nuclear Generation Station site has eight functional reactors with a combined capacity of 6,430 MW. Providing employment to more than 4,000 people, the plant was built modularly over a 17 year period (1970 to 1987) by Ontario Hydro. Generating approximately 20% of the province’s electricity requirements, the plant is divided into two separate stations: Bruce A and Bruce B. Both stations employ four Canada Deuterium Uranium (CANDU) nuclear reactors. Fuelled by uranium, technicians moderate the core using deuterium-oxide, which allows them to safely control the power output of the reactors.

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AMERICAS | APAC | EMEA FIND OUT MORE

T O P 10

0000 YEAR FOUNDED

7,337MW

$0.0bn

CAPACITY

REVENUE IN XXXXXXXXX DOLLARS

0,000 NUMBER OF EMPLOYEES

68

02

Kori

SOUTH KOREA

Located in a Kori, Busan, the construction of the Kori Nuclear Power Plant began in 1972. The first reactor began active operations in 1978, with six additional units added over the years, ranging from power outputs of 640MW to 1,340MW. In an effort to maintain safety and ensure that the plant continues to operate using modern technology, Kori-1 (the plant’s first reactor) was decommissioned in 2017. Meanwhile, construction of the Kori-5 and 6, which are to be third-generation reactors equipped with state-of-the-art safety features, is still under development.

APRIL 2020

Nuclear security watchdog gives green light for construction of two nuclear power plants |

0:41

69

© Korea Kori NPP

CLICK TO WATCH

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T O P 10

7,965MW CAPACITY

70

Daily Inspections at Kashiwazaki Kariwa Nuclear Power Station CLICK TO WATCH

APRIL 2020

|

2:35

01 0000

Kashiwazaki-Kariwa JAPAN

YEAR FOUNDED The largest nuclear power station in the world by output capacity, Kashiwazaki-Kariwa is based on a 4.2 square kilometre site in

$0.0bn Japan. Located close to the Sea of Japan, which the site utilises REVENUE for cooling water, construction of the plant began in 1980 by IN XXXXXXXXX the Tokyo Electric Power Company and finished five years later.

DOLLARS Containing seven operational units - five at 1,067MW and two

at 1,315MW - the reactors are fuelled by low-enriched uranium.

0,000 Following a high-magnitude earthquake in 2011 - the most powerNUMBER OF EMPLOYEES ful in Japanese history - all of the plant’s units were shut down for

safety inspections, although the plant was relatively unaffected by the earthquake directly. As of 2020, however, the reactors have still not been brought back to functional use.

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71

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences EDITED BY MARCUS LAWRENCE from around the world

NEW DATE 31 AUG - 1 SEPT 2020

The Solar Show // The Wind Show [ CAIRO, EGYPT ]

The 2020 MENA Solar and Wind 72

Shows are government-affiliated, free-

NEW DATE 15-17 OCT 2020

over 150 speakers from the region’s

Electric and Hybrid Vehicle Technology Expo

renewables industry across two days.

[ STUTTGART, GERMANY ]

Speakers at the events include: Sherif

The Electric and Hybrid Vehicle Tech-

Issa, Head of Environmental Sustain-

nology Expo (EHVTE) in Stuttgart will

ability at Orange; Sonia Mezzour, Vice

offer attendees the chance to hear

Chair of the Bureau of PPP Working

from and speak with over 450 manu-

Party at the UN Economic Commission

facturers and service providers from

for Europe; Harry Boyd-Carpenter,

across the hybrid, electric vehicle (EV)

Director of Power and Energy Utilities

and battery supply chains. Offering the

for the European Bank for Reconstruc-

chance to glean insights from industry

tion and Development; Amani Al

leaders on the latest innovations and

Azzam, Secretary General for Jordan’s

solutions, EHVTE promises to be one

Ministry of Energy and Mineral

of the best destinations for industry

Resources; along with many more.

players in 2020.

to-attend events offering content from

APRIL 2020

30 APR–1 MAY 2020

Impact Investing World Forum 2020 [ LONDON, UK ]

NEW DATE: 14–15 SEPT 2020

leading investors from around the

All- Energy Exhibition Conference 2020

globe to hear about the ways that

[ GLASGOW, UK ]

investment can be levied to spur

Glasgow’s All-Energy Exhibition and

business sustainability, environmen-

Conference strives to enable the UK

tal action, ethical business,

renewable low carbon energy commu-

technological advancement and

nity “to interact, conduct business,

much more. Key speakers for the

network and learn, whether face-to-

2020 event include: Michele Gid-

face or online”, according to the

dens, Co-Founder and Partner of

organisers. Held annually in Scotland,

Impact Project Management; Sophie

the event brings together a total audi-

Eisenmann, Head of Philanthropy at

ence of around 7,000 and promises to

UBS; and Margaret Kuhlow, Final

be a must-attend conference for any

Practice Leader at WWF.

energy professional.

This global event brings together

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73

EVENTS & A S S O C I AT I O N S

26–28 MAY 2020

The Responsible Business Summit Europe 2020 [ LONDON, UK ] The leading European conference for

POSTPONED UNTIL FURTHER NOTICE

Cleantech Forum Europe

driving a sustainable future through business returns in May, with an agenda packed with discussions around the need for action, collabora-

[ LUXEMBOURG, LUXEMBOURG ]

tion, fresh models, shifts in

The 16th annual Cleantech Forum

investment, the business case for

Europe, set over three days, brings

sustainable operations and how busi-

together the biggest players in the

nesses, no matter their size, can do

clean technology space, along with

their part. Speakers at this year’s

government representatives and

event include, but are not limited to:

investors, for discussion, networking

Rebecca Marmot, CSO at Unilever;

and opportunities to strike new part-

Douglas Lamont, CEO at Innocent;

nerships. Keep an eye out for updates

Yolanda Malone, VP of Global R&D

on speakers and the event’s pro-

Snacks PKG for Pepsico; and Pia Hei-

gramme in the coming months.

denmark, CSO of IKEA.

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75

76

EXPERIENCE DESIGN, ENTERPRISE AND CULTURAL AGILITY IN AUCKLAND WATERCARE’S DIGITAL TRANSFORMATION WRITTEN BY

RACHAEL DAVIS PRODUCED BY

STUART IRVING

APRIL 2020

77

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W AT E R C A R E S E R V I C E S

Auckland’s Watercare, New Zealand’s largest water utility company, provides the city’s 1.7 million people with clean water and reliable wastewater disposal. We spoke to Rebecca Chenery, Paul du Quaasteniet, and Peter Johnston about Watercare’s innovative digital transformation

I

n 2010, Watercare consolidated seven water utility companies in Auckland to create a more consistent, better man-

aged system for the city’s residents. Watercare 78

quickly built a solid track record in infrastructure and service delivery, but Raveen Jaduram, Watercare’s Chief Executive Officer, has over the last several years focused on putting customers at the heart of the business. According to Chief Digital Officer Rebecca Chenery, “becoming customer-centric today means more than being reliable and efficient – it means being fast, flexible and responsive to the changing needs of Aucklanders”. This sentiment is the driving force behind the digital transformation and application of technology underway at Watercare.

The multi-year transformation has been led by Raveen Jaduram and his Executive team, knowing that, for real change in mindsets and culture to occur, it needed to be led and modelled from the top.

APRIL 2020

79

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Want to follow in Watercare’s footsteps?

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We’ll help transform the way you deliver quality software by combining powerful technologies with the best operational expertise to deliver software assurance in today’s digital world.

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TTCGLOBAL.COM

Going digital – it’s do or die in today’s modern landscape Digital transformation is certainly a hot topic and is driving conversations at the executive table around: Digitising customer experiences Increasing speed to market Moving to Agile working environments Lowering costs Increasing quality TTC is a NZ owned software assurance provider with a focus on enabling organisations across the globe to transform the way they deliver technology. TTC teams enable robust and rapid test program delivery that helps organisations increase the speed and quality of technology deployment while reducing risk and cost. Deploying a continuous testing platform provides the fundamentals of automated testing, test data management and continuous deployment across any technology landscape in any industry and for any company size.

Digital or die Digital is very simple from the customer’s perspective (let me transact whenever and from wherever I am), but often highly complex in practise – this is where automated and continuous testing becomes vital. Without it, executives do not have visibility or control of the quality of their IT program and suffer poor speed to market and increased risk.

The world won’t wait Many industries use complex, cross-functional systems, which can slow down the launch of new products and services. TTC believes you can get a head start by investing in a continuous testing platform that is easily understood and implemented. This investment provides tangible value and lasting benefits including re-usable test assets for project and postproduction use, security of IP and less reliance on individuals.

The typical outcomes are: Test cycle times reduced from 10 weeks to 3 days Business risk coverage increased from 30% to 90% Improved data and enviroment management Easier engagement and visibility with development suppliers Decreased cost of testing ownership Increased and retained value of testing assets Ongoing operational monitoring Integrated test and business process automation Testing culture for today’s IT program Most organisations must deliver their IT programs via a variety of traditional or modern delivery methods. Recently, common themes include Agile, DevOps and cloud computing as key enablers of going digital. The goal is to enable cross-functional, highly co-ordinated teams to deliver a digital improvement in very short cycle times. An automated and continuous test platform is key in today’s fast-moving, risk adverse world.

Remaining competitive A common goal and outcome is to reduce an organisation’s cost base by at least 10%. Manual testing (and the by-product of incomplete testing) typically consumes 29% of an IT budget. TTC delivers an automated and continuous test platform that will bring significant and repeating return on investment. With specialised testing consultants in offices around the globe, TTC assists all organisations in delivering modern, universal testing programs resulting in higher quality software, faster time to market, reduced costs and lower risk.

Learn More

W AT E R C A R E S E R V I C E S

Watercare: a day in the life of David Luke, a Waikato-based treatment plant operator CLICK TO WATCH

|

5:04

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“ THINK OPENLY, SOLVE PROBLEMS DIFFERENTLY, AND COLLABORATE” — Rebecca Chenery, Chief Digital Officer, Watercare

how data is leveraged across the business. To meet the targets set out in the programme, a collaborative attitude has been essential, together with the combination of multiple teams from across the business. For example, Watercare did not want to create an ‘innovation bubble,’ but a cooperative, communal environment where opin-

The company’s Strategic Transformation

ions are valued and voices are heard.

Programme, of which Paul de

“For an organisation like Watercare,

Quaasteniet is the Programme Director

which has had a number of long-tenure

and Peter Johnston is Enterprise

staff and legacy ways of working, the

Change Lead, represents an overhaul

culture shift has been substantial,”

of ways of working, technologies and

affirms Chenery.

APRIL 2020

A key way in which the company’s

are poised for greater success moving

management team drove this change

forward by creating an agile mindset

in working culture was through the crea-

that encourages thinking openly,

tion of a new co-working space, The

solving problems differently, and

Hub, which Chenery says “provides

greater collaboration.

a place for people to meet, eat, work

“We have seen a big shift in how

and host visitors — to use as they see

teams have removed functional barri-

fit.” The notion of a shared, multi-purpose

ers, found a common goal and pooled

space was new for Watercare. It was

efforts in the same direction – these

an initial signal that the culture was

new attitudes and skills in working

changing into more of a creative environ-

inside and across teams has been

ment, led by new ideas and collaborative

fundamental,” says Johnston.

working. Additionally, Watercare placed

“The Strategic Transformation

key leaders through a tailored leader-

Programme gave the foundation for

ship programme, and provided staff

three aspirational outcomes,” says

with Agile Fundamentals and Design

de Quaasteniet. “These are: that the

Thinking training and on-the-job learn-

customer can do everything for them-

ing. This has ensured that employees

selves wherever they are, in a single

E XE CU T I VE PRO FI LE

Rebecca Chenery As Watercare’s Chief Digital Officer, Rebecca Chenery is responsible for leading all technology aspects of the business along with Watercare’s business transformation programme. She has many years of experience in leading teams to deliver exceptional business outcomes across the financial services, telecommunications and water industries in New Zealand and overseas.

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83

W AT E R C A R E S E R V I C E S

84 interaction; that our people have the

financial systems; an automated market-

right tools, best processes and are

ing solution for internal and external

empowered to do their jobs; and that

communications teams; a new enter-

they are able to make insight-informed

prise asset management system for the

and fact-based decisions with confi-

operations side of the business; and a

dence.� Through streamlining processes

planning and insights solution for ana-

and improving staff skills and attitudes

lysing population and growth data to

in working with data, Watercare is now

see where Auckland’s major growth is

able to use its insights to make informed

occurring while assessing how to best

decisions that are more predictive

respond. With the help of specialist part-

than reactive and ultimately improve

ners, robotic process automation (RPA)

customer experience.

technology has been implemented

In terms of technology, the transfor-

across key business processes, helping

mation has involved the successful

Watercare’s people to use and see ben-

replacement of the customer, billing, and

efits from integrated technology.

APRIL 2020

“Our squads have also been working

management introduced by the Strategic

with our business support areas, such

Transformation Programme. For exam-

as Health, Safety and Wellbeing and

ple, the development of its platform

Human Resources. We have automated

strategy, hosted by AWS, will future-

the transactional parts of these func-

proof Watercare’s core technology

tions to free our professionals up to do

needs and allow the organisation to

what they are here to do: support our

respond to and introduce new solutions

leaders and our people to be at their

to long standing problems.

best,” says de Quaasteniet.

One essential innovation is

These new technologies have been

Watercare’s Data Hub. Established

pushed out through the new approaches

on the new, AWS-hosted platform,

towards culture, delivery and change

the Data Hub brings together data that

E XE CU T I VE PRO FI LE

85

Paul du Quaasteniet Paul is a transformation leader focusing on digital strategy, operating model transitions and organisational change implementation. He’s currently leading Watercare’s Strategic Transformation Programme (STP), a two-year design-led digital reinvention programme across people, process, data and technology domains. Paul has worked in the Middle East, Asia and New Zealand in utilities, manufacturing, consumer products, oil & gas, transportation & logistics and health organisations.

Paul believes that transformation success often comes down to being human-centred, which requires strong leadership, nimble, crossfunctional teams and a ‘safe to experiment’ working culture.

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W AT E R C A R E S E R V I C E S

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“ DESIGNING FOR A GREAT EXPERIENCE — USING NEW DISCIPLINES LIKE HUMAN CENTRED DESIGN, WHICH REQUIRES STRONG TEAMING AND EVEN STRONGER LEADERSHIP — WILL KEEP WATERCARE IMPROVING INTO 2020 AND BEYOND” — Peter Johnston, Enterprise Change Lead for the Strategic Transformation Programme, Watercare

APRIL 2020

87

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“ IT WAS AN END-TO-END REPLACEMENT OF OUR CORE SOLUTIONS, WITH A VIEW TO PULLING OUT THE DATA AND USING IT TO DRIVE BETTER DECISION MAKING ACROSS THE ORGANISATION” — Paul de Quaasteniet, Strategic Transformation Programme Director, Watercare

was previously scattered across the business into one accessible visualisation layer, making it available and digestible for every employee. It also facilitates the exchange of information with external organisations and agencies, such as Auckland Council.

Data Hub supports Watercare’s principles of “data availability, quality, stewardship and governance,” which de Quaasteniet says has resulted in “a shift in how people use data, come together across the Data Hub and drive insights.”

“As an example, we are rolling out IoT across key parts of our network, and PRO FI LE

Peter Johnston Peter is a strategy, business design and transformation specialist who leads the organisational change management component of the transformation programme. Peter’s run business consulting teams across Europe, the UK and Australasia, having recently established and led the IBM iX consulting practice in New Zealand. Peter applies behavioural science and design research to help transform the customer experience, and to help make work more meaningful and rewarding. Establishing strong leadership and teaming to improve creativity and innovation is a big focus of his work.

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W AT E R C A R E S E R V I C E S

90

streaming data through our Data Hub.

a large and complex programme of

This enables our data science team

work. “Having clear career steps and

to uncover insights that will allow the

implementing badge systems to provide

operational teams to save money, save

an evidence-based route to profes-

water, and increase customer satisfac-

sional progression is important. We

tion,” he adds. “Having the right partners

have needed to give our talented tech-

on the journey was critical. The fresh

nical people pathways to build their

talent from Harmonics has accelerated

skills that don’t necessarily end up in

our shift towards a data-driven culture.

‘people management’. We are compet-

TTC has helped move our test automa-

ing hard in the market for these new

tion from zero to over 80%, seriously

skill sets — Data Science, Behavioural

raising our Quality game”

Science — and we need to give these

Attracting and nurturing top talent has been central to implementing APRIL 2020

people lots of room for growth and development,” says de Quaasteniet.

The change has been significant.

Now, instead of new tech projects taking one to three years to complete, with the new platform and ways of working, Watercare can deliver change in substantially less time — weeks and months rather than years. Another component is the organisation’s automated testing platform, which minimises the spend on testing from 30% of the budget to under 10% while quadrupling the efficiency and speed of testing. Partnering with the right experts who can help augment its capability has been a critical aspect of the success of Watercare’s technol-

1993

Year founded

ogy quality drive.

The next step for the Data Hub is the development of the Nerve Centre — Watercare’s ‘air traffic control tower’ which is both physical and technical.

1.7mn+

Aucklanders provided with lifeline services daily

1,000 Number of employees

Visualisation will be key to its operation, with large screens and interactivity bringing together different aspects of the organisation through the application of data. Ultimately, the Nerve Centre will provide a predictive layer to the maintenance of Auckland’s water supply so Watercare can preempt problems or identify them early, allowing for timely maintenance. w w w.e ne rgydi gi ta l. com

91

W AT E R C A R E S E R V I C E S

“ THE CULTURE CHANGE IS THE FOUNDATION OF EVERYTHING THAT WE HAVE BEEN ABLE TO DO” — Rebecca Chenery, Chief Digital Officer, Watercare

93 Looking ahead, Watercare will

an improved, more sustainable digital

continue to focus on digital innovation.

experience than before, and implement

“Keeping ahead of technological

change more quickly and effectively.

advances, scanning the market inside

“Everything we have done, whatever

and outside of the water industry,

outcome we needed to deliver, has

and trying to raise digital literacy

been focused on our people and

across staff are core expectations

our customers,” says Chenery.

of the Digital team,” explains Chenery.

“The culture change is the foundation

The digital transformation that Watercare has experienced has ena-

of everything that we have been able to do.”

bled it to remain at the forefront of new technologies which provide the foundations for innovation. Through the implementation of innovative technology, the organisation is able to deliver w w w.e ne rgydi gi ta l. com

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Charting a course for the energy transition through procurement WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

CHARLOTTE CLARKE

APRIL 2020

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As BP’s procurement transformation goes from strength to strength, we speak with Mark Smith and Alex Thomson to discuss the pivotal role that Compass is playing on its enhanced operations

P

rocurement and digital transformation have become intrinsically linked in recent years. While the former has become more

central to business operations for organisations around the globe, the latter seeks to disrupt dated strategies and technologies that have become 96

increasingly incompatible with the demands of modern business. The combination of the two delivers profound benefits for organisations that can master such fine alchemy; offering agility, flexibility, leanness, sustainability and readiness for both business and geopolitical landscapes that are evolving faster than ever before. At BP, the launch of its proprietary Compass platform forms the backbone of procurement transformation within and beyond its Global Business Services (GBS) division. The platform, developed with scalability and flexibility in mind, enables integrated, end-toend, digitalised procurement processes. Offering ease of use, visibility, artificial intelligence (AI), automated source-to-pay (S2P) functions and a portal for external stakeholders, Compass is revolutionising the way procurement operates at BP. APRIL 2020

Server room at the Center for High-Performance Computing. Photo © BP Images

97

Formulating BP’s new ACTIVE fuels. Photo © BP Images

Serving as the glue of the transformation, Compass brings vital components together from across the organisation to foster collaboration and visibility like never before.

“Procurement and supply chain have been thought of as linear processes in the past,” says Mark Smith, Head of Strategy and Transformation for BP’s GBS Procurement organisation. “You start with a strategy, you end with a contract, you place an order and then, at some point, you’ll go back and restart. In the modern world, you’re w w w.e ne rgydi gi ta l. com

“ You’ve got to be efficient, but you’ve got to be effective. A number of companies have gone for efficiency – and that’s very good for function – but you’ve got to balance out the effectiveness of the output”

98

— Alex Thomson, Head of Procurement Services, BP GBS

constantly in all parts of that process.

“There might be new and emerging technologies that force you to rethink a strategy you devised six months ago; there might be changes to your demand patterns that come out of your ordering behaviour, necessitating a review of your supplier portfolio.”

Enabling effective management of these concurrent processes, Smith says, is Compass’s raison d’etre. “The process’s execution may exist in different systems, such as SAP Ariba or some of our legacy environments, but Compass provides end-to-end digital integration of all elements of procurement in one place.”

Highlighting other factors driving the firm’s procurement transformation, Smith begins with the seismic shifts in the global energy market. “The world will require significantly more energy to support population growth and the prosperity that everyone is looking to drive,” he says, “but that energy needs to come with lower carbon. To do this, BP needs access to new ways of doing things, disruptive thinking and new technologies.” In procurement, this challenge can be tackled by optimising

APRIL 2020

CLICK TO WATCH : ‘BP GBS – MARK SMITH, HEAD OF PROCUREMENT STRATEGY ON PROACTIVE OPERATIONS’

the mechanics of its supplier inter-

technologies emerge, such as new

actions – a key component of the

battery technology or alternative forms

Compass platform.

of power and energy.” Smith summa-

Another considerable factor is the

rises: “The thrust of the procurement

attraction and retention of top-tier

transformation is around three things.

talent, both internal and external to

The first is people, the second is about

the organisation; the training and

enabling the organisation with the

development of whom can drive the

with the correct tools, and the third is

sharpest innovations which will assist

about combining both people and

in future-proofing the company as

tools together in order to harness BP’s

the wider industry evolves. “As the

data to drive value.”

world changes, the requirements are

Unlocking the nascent power and

changing,” says Alex Thomson, Head

enabling qualities of BP’s data has

of Procurement Services. “We must

required innovative but pragmatic

be agile and able to adjust as new

thinking, and Compass is the result w w w.e ne rgydi gi ta l. com

99

of such an approach. “We’ve thought

a similar fashion to a sale, with the

innovatively about our entire end-to-

related work being distributed to the

end process,” says Smith. “If you think

stakeholders concerned promptly and

about it, sales is the mirror image

accurately. In sum, the sales-esque

of running a procurement exercise,

process delivers vital data to the

and so we’ve used a sales platform

right specialists as required, provid-

repurposed in reverse to run our pro-

ing both democratisation of data and

curement processes.” Opportunities

enhanced visibility.

are funnelled through Compass in

While the benefits to efficiency are

E X ECU T I VE P RO FI LE

Mark Smith Mark Smith is the current Director of Strategy and Transformation for GBS Procurement in BP (having previously held a similar position in Downstream Procurement since 2012), driving the Procurement operating model, systems and process transformation. Overall, Mark has over 17 years’ experience in functional strategy and business transformation, specialising in Procurement within oil and gas. Working with organisations such as Shell, Chevron, Babcock, Centrica, Taqa, Husky and Seadrill, Mark has experience across the Procurement lifecycle from Category Management to Source to Pay in Upstream, Downstream and Corporate and Functions supply chains.

100

Mark holds an LLB (Hons) and Masters degree in IT from the University of Nottingham. He is married to Jackie and has two children, and recently completed his fifth marathon.

APRIL 2020

clear, Thomson stresses that focus-

of the output. What you then enable

ing solely on making processes more

from the supply market to the users

efficient is tantamount to wasting

is appropriate for the output quality

opportunities. “You’ve got to be effi-

you need.” Through Compass, BP is

cient, but you’ve got to be effective,”

able to connect the end-to-end chain

he explains. “A number of companies

from strategy and category strategy

have gone for efficiency – and that’s

through to execution and the place-

very good for function – but you’ve

ment of commitment in the supply

got to balance out the effectiveness

market. “That adds efficiency to

E X E CU T I VE PRO FI LE

Alex Thomson Alex Thomson is currently the Global Head of GBS Procurement in BP. He leads a cross-regional, crossfunctional team that manages BP’s global Corporate categor y demand, covering areas such as IT and Business consulting, as well as being accountable for BP’s source-to-pay activities. Alex has over 30 years’ business experience in BP in a wide range of business roles. These include managing the performance of chemical businesses, leading strategic change in IT and Procurement and executing the delivery of major M&A projects. Immediately prior to his current role, Alex was Head of Country for BP in Malaysia and led the GBS Asia operation in Kuala Lumpur, supporting BP businesses and functions worldwide.

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NAVIGATE YOUR NEXT WITH INFOSYS Analytics driven S2P offerings that identify and unlock value and improve user experience, RPA enabled operations to realize those Manage project structuring, strategic sourcing, benchmarking, tendering and contract negotiation

With over three decades of experience in managing the systems and workings of global enterprises, we can help navigate you towards opportunity with AI-powered Core Agile Digital at Scale Always-on Learning The journey to digital has so many nexts.

Navigate your next with Infosys. www.infosys.com

Mitigate risk through robust supply channels to maintain technical integrity and timely delivery

PROCUREMENT 4.0 – ARE YOU READY? Procurement has been at the forefront of adopting cloud-based digital platforms enabling efficient transacting processing. This transition to cloud that started with indirect purchasing has accelerated to direct materials. Key purchasing functions have gone a step further by building an ecosystem of solutions offering rich automation and intelligence lowering transaction costs by an average of ~30%.

Some industries like oil and gas have lagged in digitalization due to a mix of high regulations, significant variations between upstream and downstream and history of acquisitions. Figure 1. lists some of the typical challenges these industries face in their procurement value chain.

• • • •

• Under-exploited early payment discounts • Delayed payments

• Blocked invoices • Lack of invoice status visibility

• • • •

• Supply Chain Financing • P-cards

• Receipt Settlement • 2-3-4-way match

Supply chain disruption due to supplier risks Incorrect spend categorization Poor savings visibility / category Absence of fraud prevention Dashboards Categorization Spend Analysis Sourcing Strategy

Process Activity Capability

• eRFx

• Challenges

Resolve • Lack of control in text based requisitions

• e-Invoicing • PO-flip

Pay

Identify

Assess

Receive Invoice

Pay

Source

Transact

Procure

Contract

Approve

Request

Evaluation

• Tender Mgmt • Qualification

Enable

• Limited category strategy • Unstructured cost reduction initiatives • Lack of collaborative platform • Insufficient buyer productivity

• Cumbersome vendor collaboration • Vendor Managed Inventory

• Lack of decision support for approvals

In our experience, such companies can accelerate their digital transformation journey by adopting an approach based on four key principles – a clear view of applications at the core, automating and optimizing in parallel, AI as a central part of data operations and building an agile culture.

Digital Core: Transitioning from a jigsaw of legacy applications to a user-friendly digital platform starts with a clear definition of process that need to be part of the core and those that need to be part of the surrounding ecosystem. User experience needs to be at the center of this decision and supported by seamless data and process flows.

We recommend associating productivity and cycle time KPIs with user experience to make this a quantifiable benefit.

Automation: Process variability and disjointed workflows are prevalent in most organizations. While in an ideal scenario, streamlined processes are first developed and implemented, driving automation in parallel can release investments and capacity required to drive larger transformation programs. Looking ahead, these automated KPI driven processes form the cornerstone of the new solution.

AI and data: The challenge of combining meaningful data for analysis and transaction processing has long existed. A bill of material that is common across supply and demand, item master with the right attributes, and supplier masters with well-defined descriptions are examples of elusive essential building blocks. This is one area where AI is playing a significant role in both helping clean current data sets and merging information from new data sets to provide meaningful reporting with a significant positive impact across procurement KPIs. Agile mindset: Most large companies have followed a traditional waterfall approach with multi-year timelines and complex program structures. Even companies claiming to

• Automated Approval Workflow • Exception Management

• e-Requisition • Guided Procurement

• Performance Management • Classification

Negotiate

• Bidding Process • Reverse Auction

• Rudimentary quote comparison • Manual sourcing process • Poor identification of sourcing opportunities

Contract • • • • •

Onboarding Contract Lifecycle Mgmt.

Digitize Contracts Clause Standardization Approval Workflow

• Low contract compliance • Cumbersome contract obligation mgmt.

• Long contract lead time

Fragmented process • • • • •

Maverick buying Non-compliant spend Disparate / fragmented landscape Un-intuitive UI Ineffective knowledge-sharing

• Supplier performance not linked to procurement decisions • Poor supplier risk assessment

© Infosys Consulting

adopt agile are largely adopting the waterfall-based QA stage-gate process. Adopting agile requires the upfront allocation of the right team with end users, solution developers working in close co-operation and acceptance of imperfect product versions as a natural part of developing the solution. This fast iterative cycle and close co-operation cuts the project delivery time significantly and has been proven to enable radical simplification of end-to-end processes.

In summary, a mix of clear vision, new technologies, and an agile mindset is already enabling leading purchasing functions to accelerate procurement digital transformation.

The timing is right for all organizations to accelerate their journey to procurement 4.0.

Robin Goswami Senior Vice President, Global Head – Energy (Oil and Gas) Practice, Infosys Ltd.

Robin Goswami is a Senior Vice President and heads the Energy (Oil and Gas) practice in Infosys. Goswami has been instrumental in building the oil & gas practice in the organization since its inception to its current stature. He is a transformative leader with over two decades of experience in the IT industry. He is also a member of the board of directors of two companies - an IT consulting firm acquired by the Infosys Energy practice, and a global consortium that sets data exchange standards for the Upstream Oil & Gas industry.

© 2019 Infosys Limited, Bengaluru, India.

“ The world will require significantly more energy to support population growth and the prosperity that everyone is looking to drive, but that energy needs to come with lower carbon. To do this, BP needs access to new ways of doing things, disruptive thinking and new technologies coming from the supply market” — Mark Smith, Head of Procurement Strategy, Performance and Transformation, BP Downstream 104 processes and visibility of information

is to move to a world where we’re using

as to where work is progressing along

much more guided buying, with con-

that continuum, as well as improving

sumer-like technology that allows end

the output because you can see

users to self-serve,” he says, noting

the quality and whether it’s meeting

that such innovations are revolutionis-

users’ needs.”

ing procurement’s position within the

The modular aspect of Compass

wider organisation. “Like many procure-

means that this solid foundation can be

ment organisations out there, we’ve

built upon and modified to reflect trends

really struggled with the notion that,

for years to come. One such element

every time you need or want some-

to be infused into the platform’s

thing, you have to go to procurement

capabilities is automation, with Smith

and they will slow the process down.

highlighting the S2P function as one

While we still have a way to go on that

area to benefit from the emergent tech

journey, we’re starting to see more use

thus far. “The intent of automating S2P

of self-serve catalogues, quoting and

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CLICK TO WATCH : ‘BP GBS – MARK SMITH, HEAD OF PROCUREMENT STRATEGY ON ACCESSING INNOVATION’ 105

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O U R PART N ERS

106

“Infosys are our partners responsible for developing and maintaining two key modules of our Compass platform: opportunity and case planning. The huge advantage we get from those two modules in Compass is in our ability to workforce plan, prioritise and operate our activities at scale. From those modules, we are able to assign resources to those activities, track them to completion and check their status. One of the things we’re really excited about as a development for this year, and into next year, is our work with Infosys to improve the user experience around the way cases f low through the procurement operation.”

— Mark Smith

“App Orchid, with its AI capabilities that automate parts of the contract cycle, is a great example of BP using new ideas from smaller companies to increase effectiveness and efficiency in an agile way. BP has scale while companies like App Orchid have more agility and ideas of what’s possible with emerging technologies, and co-venturing brings together the best of both worlds.”

— Alex Thomson

APRIL 2020

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buying. The net effect of that is the creation of more space in the organisation to work through the innovation agenda.”

While the automated S2P features have been in operation for a few years, the firm has more recently incorporated intelligent contract reading and analytics-focused AI into Compass, enabling seamless document scanning and archiving in a way that draws value from the respective data. “We’ve been working out a proof-of-concept to allow you to conduct those searches 108

with natural language processing.

For example: ‘What was my caustic soda usage in the last ‘X’ months?’.

extra-organisation communications

Compass gives us a platform to inno-

with suppliers, the intricacies of pro-

vate from while adding capacity to the

curement have evolved to the extent

organisation,” adds Smith. “We’ve also

that multiple teams, with complemen-

added collaboration technology that

tary capabilities, are found along the

allows people to work on documents

operational chain. This increases the

together in real-time, along with 360

risk of silos with poor communication

degree views of all our interactions

which in turn hamper progress. “In the

with particular strategic suppliers.”

past, you would have your procurement

Collaboration at scale is an ascend-

team who were down the corridor, and

ant necessity for organisations, but

they would have conducted the entirety

Smith says that this is particularly

of the procurement process,” Smith

acute in increasingly complex pro-

explains. “In reality, much of that now

curement environments. Whether it is

is, and should be, operated at scale

internal teams liaising for a project, or

on the behalf of the entire enterprise.

APRIL 2020

Since the implementation of

“ A lot of the effort that goes into procurement is effort that most of our workforce would rather not expend” — Mark Smith, Head of Procurement Strategy, Performance and Transformation, BP Downstream

Compass, our teams have seen innumerable benefits, including: the effective distribution of work, improved management of team activity backlogs and the balance of resources. Compass has created a better experience for all those working in and around procurement. The fresh degree of visibility and comparability that BP gains between its vendors and suppliers affords it opportunities to optimise costs and quality through partner selection, while simultaneously illuminating more sustainable options. “We

have been working specifically with some of our IT suppliers on reducing their carbon impacts,” says Smith.

“Some of our cloud providers, for example, are big power users, and so we can work with them to understand the source of that power and whether renewable is an option.” Thomson echoes this sentiment, adding that growing data demands from all industries will see data centre power consumption continue to rise.

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109

visibility to decide who we will and won’t deal with,” he says.

“It’s about being conscious of footprints as we buy closed requirements, and encouraging sustainable strategy.”

Compass, through its document scanning functions and end-to-end digitalisation, has also seen a marked shift towards paperless operations,

“ It’s not a binary case of using this visibility to decide who we will and won’t deal with, it’s about being conscious of footprints as we buy closed requirements and encouraging sustainable strategy”

the sustainability benefits of which speak for themselves.

110

“We have been able to elimi-

— Alex Thomson, Head of Procurement Services, BP GBS

nate what amounts to around a million paper invoices from suppliers each year,” enthuses Smith.

“That’s a very tangible example of

in reacting to things we would have like

how Compass is reducing our envi-

to have better foreseen, or in manually

ronmental impact.”

collecting information that allows us to

Implementing such an exhaustive overhaul of procurement functions

make better decisions.”

This effort, he enthuses, is better

naturally conjures concerns around the

spent on creativity and value added

ease with which a workforce will cope

tasks. “The organisation is somewhat

with the shift, but Smith is confident

frustrated by the drains on its ability to

that BP’s procurement teams have

act in a creative capacity because of

been receptive and supportive. “A lot of

the challenges in the data landscape

the effort that goes into procurement is

and the manual activity required

effort that most of our workforce would

to keep our operations running. We

rather not expend,” he says. “Such as

want to be orchestrating rather than

APRIL 2020

111

executing those processes. As we

communication, collaboration, sus-

enter this world, we’re extremely pas-

tainability, and vendor management.

sionate about using technology to

Thomson says that flexibility, however,

move us into that creative space while

is the chief boon of the GBS-led pro-

helping the organisation to upscale in

curement transformation. “Being able

a way that, where necessary, supports

to adjust as requirements evolve is vital,

that journey.”

especially as supply markets around the

The sum of all these factors, Smith

world change pretty fast. Being able to

and Thomson highlight, is a shift in

take advantage of that through procure-

procurement’s capacity to enable

ment is a hugely positive change.”

the energy transition. Compass has revolutionised procurement within BP in many aspects: visibility, ease of use, w w w.e ne rgydi gi ta l. com

112

SAP Cloud for Utilities: an integrated industry solution WRITTEN BY

WILLIAM SMITH

APRIL 2020

PRODUCED BY

BEN MALTBY

113

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SAP

How SAP’s Cloud for Utilities solution portfolio can unlock new possibilities in a rapidly evolving market

S

AP Cloud for Utilities (C4U) is a pioneering new end-to-end portfolio of solutions from SAP, intended for use in the Lead-

to-Cash process employed by utilities companies.

Three individuals from the wider SAP organisation are guiding its market introduction. Klaus Lohnert 114

is programme director and the overall lead of the project. Mateu Munar, Senior Director, Industry Business Unit Utilities and Stefan Engelhardt, Global VP Go-To-Market Strategy Industry Business Unit Utilities, are also part of the C4U leadership team and in charge of the solution management for SAP’s Utilities portfolio. “As part of that team,” Munar explains, “I have the role of the go-to-market lead for the new SAP Cloud for Utilities suite.”

Engelhardt adds: “We are the solution owner for the complete business suite. In my role, I particularly support the C4U leadership board from a strategic perspective, as well as Mateu and the team with our go-to-market activities.”

In terms of overall structure, Lohnert explains that “we have four streams. There is the

APRIL 2020

115

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SAP

“ What’s happening at the moment is a tremendous infrastructure program, going from a centralised to a decentralised system”

development stream, where we develop the solutions. Then we have the go-to-market stream, in which Mateu and Stefan are allocated.

Operations, because this is a cloud solution which we are operating, and the final part is the transition service we offer to make implementing the solution easier for our customers.”

The complexity of the behind the

Klaus Lohnert, Program Director SAP Cloud for Utilities, SAP 116

scenes structure reveals the ambition of the solution. Comprising a portfolio of solutions useful to the utilities industry, SAP C4U supports products from

E X ECU T I VE P RO FI LE

Klaus Lohnert Klaus Lohnert is Program Director SAP Cloud for Utilities. He has over 20 years of international experience in the utilities industry and management consulting. His passions are for empowering business leaders to optimise the value of their businesses through best-in-class, forward looking processes, organisations and solutions, as well as providing customers guided access to innovations to get ahead of competition and help them to achieve the desired business outcomes of their business transformations.

APRIL 2020

SAP Analytics Cloud: Embed Your Analytical Insights Into a Web Application CLICK TO WATCH

|

4:21

117 modelling through to the market, as

terms of reducing costs and adoption

well as demand prediction, monitoring

time.” Engelhardt adds that the offer-

of customer behaviour, managing bill-

ing is flexible to the specific needs

ing, customer service and adherence

of customers. “The architecture is

to regulations. “It’s a suite that covers

modular,” he says, “so we leverage the

the entire end-to-end process,” says

independent cloud components that

Munar. ”We provide a software-as-a-

SAP offers. For service, for instance,

service, cloud native solution.

for sales, for marketing, for commerce,

It’s a unique service, with no competi-

for billing and revenue management.

tor offering such a complete suite in

We’re bringing them together, extend-

the cloud. It’s important to emphasise

ing them from an industry perspective

the technological approach, because

— but you still have the option to buy and

that is what facilitates key business leads that we want to address, in

run them separately.”

Motivating customers to require a solution such as SAP C4U is an w w w.e ne rgydi gi ta l. com

SMART SOLUTIONS FOR SMART CUSTOMERS

PROLOGA and PROLOGA Energy are software development and consulting companies serving utilities worldwide. Customer profit from a comprehensive consulting and system competence that prepares the ground for a big variety of modern industry-specific solution extensions.

MODERN UTILITIES: LEVERAGING NEXT LEVEL APPLICATIONS ON SAP® CLOUD PLATFORM It does not take a crystal ball to predict that the days of traditional utility companies are numbered. Both in terms of changing customer behavior and in terms of social trends such as digitalization: the industry is facing huge dynamics while being under fire from new technologies, complex IT systems and inconsistent processes. However, automation will continue to significantly change people’s lives in the years to come.

Robots and artificial intelligence are already part of our everyday lives: our goods are sent by drones, chatbots support our customer service and soon our cars will drive autonomously. Ideas about what the utility company of the future can look like are already becoming outdated because the future of this industry has long since begun.

More importantly, utility companies should ask themselves – do we want to play an active part in shaping these changes?

Digital transformation with intelligent solutions: SAP® Cloud Applications Is there a way for utilities to be both reliable and disruptive at the same time? Part of the answer might be software solutions such as SAP® Cloud for Utilities, the nextgeneration industry business solution that supports end-to-end industry processes across all business functions, at scale, in the cloud, and in real-time.

But even a solution as comprehensive as SAP® Cloud for Utilities cannot cover all the detailed areas and requirements of a modern utility company. These gaps are closed by industry-specific solution extensions, such as those offered by PROLOGA. Automated planning, execution and confirmation of services, the reading of consumptions and on-site billing are only some examples. Another one is the highly

sophisticated Capacity and Nomination Management solution that provides efficient means for gas transport management companies to monitor the execution of capacity contract bookings and validating received nominations. And last but not least, PROLOGA also provides enhancements on SAP® Cloud Platform that complement the solution portfolio.

PROLOGA and SAP: 15 years of experience, competence, and reliable partnership For more than 15 years, PROLOGA is serving SAP customers worldwide, delivering high-quality industry solutions and add-ons. The close collaboration with SAP ensures that solution extensions

by PROLOGA are perfectly matched to SAP’s products and follow the strategic direction set by SAP. Smart solutions for smart customers is much more than a slogan; it is our daily motivation to both rethink our established solutions and adapt them to the evolving markets.

Many companies have long since started the journey to an automated era, while utilities still seem to defend the market instead of attacking it. Together let’s take a clear view on the way in which your market is likely to evolve and how modern solution extensions can pave the way to it.

SAP

120 E X ECU T I VE P RO FI LE

Stefan Engelhardt Stefan Engelhardt joined SAP in 1997 where he supported the specification and launch of SAP’s first industry solution for utilities as Global Product Management Specialist.

Since then, Stefan has held various management positions within SAP’s Industry Business Unit Utilities, becoming Vice President Utilities in 2007.

In that role, he is responsible for SAP’s global Go-toMarket strategy for the utilities industry and focuses in particular on the definition and execution of SAP’s bi-modal product innovation strategy based on SAP S/4HANA for Utilities and the new SAP Cloud for Utilities solution portfolio.

APRIL 2020

evolving energy market, influenced by

growth, they will have to look to new

factors such as the rise of renewables

business dimensions, which is why the

and the decentralisation of power

platform supports non-commodity and

production. “The traditional commodity

multi-service capabilities,” Engelhardt

business no longer provides the mar-

adds. “We leverage elements and

gins or the revenue that is required,”

know-how from the 26 industry solu-

Engelhardt warns. “Utilities have to

tions we have at SAP such as telco,

extend their scope. They have to go

automotive and so on, bringing them

beyond the traditional energy business

together in order to allow utilities to

in order to offer value added or even

offer new bundled business services.

completely independent service offer-

Of course we also automate the tra-

ings.” SAP C4U is uniquely equipped

ditional processes of the commodity

to enable those in the industry to

business. That is the way towards what

compete in this brave new world. “For

Klaus calls the ‘self-running enterprise’.”

E XE CU T I VE PRO FI LE

Mateu Munar Mateu is currently Senior Director in the Industry Business Unit for Utilities. He’s responsible for the Go-to-Market of the new SAP Cloud for Utilities Suite. Mateu has 20 years of experience in the utilities industry — before joining the Industry Business Unit Utilities, he played several roles in the industry, first as Consultant and Solution Architect implementing the SAP for Utilities Solutions, and afterwards leading the Utilities Consulting Team in the EMEA region. He is highly experienced at working with utilities customers in different market roles, different countries and through the full cycle of the SAP for Utilities Solution.

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How SAP S/4HANA can accelerate your energy transition

By David Townshend EY Global Power & Utilities SAP Leader

In an energy market defined by uncertainty, the prospect of shifting to SAP S/4HANA may seem like yet another challenge. But the right approach to upgrading can help accelerate transformation and build a more intelligent, agile organization for the future.

The cliches about 2020 being the year of vision may generate eye rolls, but for energy and resource companies, the message hits home. The disruptive forces sweeping the industry — including decarbonization, digitization, cost pressures and empowered customers — are not new but their pace is quickening.

At the same time, energy and resource companies must move

forward in migrating to the new SAP S/4HANA software release. While for some, the prospect is daunting, many are reframing the challenge as a valuable opportunity. The powerful insights and connectivity delivered through S/4HANA combined with a forward-looking business view can help them reshape into intelligent, agile organizations — if they take the right approach.

Three ways to get the best from your S/4HANA migration Moving to S/4HANA will impact every part of your business. While a poor approach will create damage throughout the organization, the right one can drive the companywide transformation that is critical to create long-term value. The right approach involves three key elements:

The migration to S/4HANA provides a valuable opportunity to not only accelerate the energy transition, but reshape energy and resource companies into intelligent, agile organizations.

David Townshend EY Global Power & Utilities SAP Leader

1. Purpose-led: The migration to S/4HANA is an opportunity to reshape your business more broadly.

Now is the time to identify or confirm organizational purpose and align this with the implications for individual processes, systems and people. This helps guide a purposeled transformation that achieves those end goals.

2. Value-focused: The two most common questions clients ask as they contemplate their migration are: i.) how can we build a business case that stacks-up both now and in the future? And ii.) how can we do this as cheaply as possible with the least negative impact on our business?

We help answer these by realigning the process to the business strategy – identifying how much value can be derived immediately and how much more can be leveraged in the future. For example, better, faster data can improve some processes now, while building a future-proof technology platform will support the agile business model and workforce needed for growth. And, all the while, the core value of the company is protected through enhanced cybersecurity and compliance.

3. Smart automation: Intelligent automation and machine learning can accelerate S/4HANA migration, reduce costs and enable value to be realized far more quickly. Automated tools also allow resources to focus on transforming those areas of the business that can help achieve big-picture goals. Post-migration, automation and analytics facilitate ongoing monitoring of people and processes to support continuous improvement.

Fast-track your agile and intelligent future EY Agile Business Transformation for energy is a proven purpose-led, value-focused approach, specifically tailored to help energy and resource companies realize the potential of their migration to S/4HANA.

Leveraging the best SAP technology for energy and enhancing it with EY SAP-certified innovations can help deliver additional benefits throughout the energy value chain: customers and billing, asset management, finance, procurement, tax, HR and risk. The highly automated EY approach and suite of tools help clients accelerate their migration to S/4HANA, realizing benefits earlier, while limiting business disruption.

Will 2020 be the year you accelerate your transformation?

Discover how EY and SAP can help energy and resource organizations use S/4HANA to thrive in this era of extraordinary change.

Š 2020 EYGM Limited. All Rights Reserved. ED None.

SAP

“ Utilities are at the heart of the energy revolution that is going on globally�

Stefan Engelhardt, Global VP Go-to-Market Strategy, Industry Business Unit Utilities, SAP

124

APRIL 2020

Lohnert identifies three key performance indicators that SAP seeks to address with the solution, including a reduction in the cost to serve, a decrease in the time to market for both classical and new energy offerings and an increase in revenue and profitability. Leveraging the cloud is one way of achieving that, but SAP is aware that its customers will be at varying stages on the cloud journey. “A lot of our development efforts are directed towards integration,” says Munar. “We provide a cloud offering, but we have to understand and be conscious of the fact that a big part of our business is on-premise.

Essentially, the scenario is evolving towards a hybrid model. Any customer can capitalise upon the investments that they have made in SAP, because we are securing that evolution with integration concepts out of the box. If they want to move into a hybrid mode, they can go there. If they want to go into a full cloud mode, they can do that as well.”

It’s not just about delivering growth.

C4U can also help companies achieve increased efficiency, and with efficiency comes more sustainable ways of doing business. “Utilities are at the heart of w w w.e ne rgydi gi ta l. com

125

SAP

the energy revolution that is going on globally,” says Engelhardt. “They are in the driver’s seat to optimise, manage and build value added services in order to achieve efficiency and to benefit from new business opportunities. That is a key focus for us as we shape and develop the solution portfolio.” While SAP C4U is a business suite rather than a technical system, it still has a part to play in this transition. “What’s happening at the moment is a tremendous infrastructure programme, going 126

from a centralised to a decentralised system,” says Lohnert. “The biggest challenge we have is to accelerate this process, and we offer services to access end customers that want

Having cultivated a successful rela-

to buy a solar panel or a heating sys-

tionship with professional services firm

tem or charging stations.”

Accenture, which saw SAP contribute from a product side and Accenture

“ We provide a softwareas-a-service, cloud native solution”

from a services side, C4U represents a co-development between the two organisations. “Accenture are market leaders and they know the industry well,” says Munar. “They know our solutions, having done this together in the

Mateu Munar, Senior Director, Industry Business Unit Utilities, SAP APRIL 2020

past. From a go-to-market perspective, and from a development perspective, it’s a win-win.” Engelhardt concurs,

1972

Year founded

$24.7bn+ Revenue in euros

96,000+ Number of employees

adding that “we have many equally

coming from other areas and enter-

important partners, such as rku.it,

ing the space. Maybe our customers

smartservices, Cronos, bpc, Natuvion,

of the future are not just utilities, but

E&Y, Atos or IBM.”

other service providers who start to

Going forwards, the aim for C4U

complement services with energy.

is clear, as Engelhardt articulates.

Our platform should provide both with

“There is one simple goal. We want

the necessary tools and processes

to help our customers to transform

to be successful.”

their business into the next dimension, and we’re doing the same on our side. At the same time, I think what we are seeing happening that is interesting for us is more and more players w w w.e ne rgydi gi ta l. com

127

128

NORDEX GROUP:

DIGITAL TRANSFORMATION

IN ENERGY WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

TOM VENTURO

APRIL 2020

129

w w w.e ne rgydi gi ta l. com

NORDEX GROUP

John McComas, Head of Project Management at Nordex North America, discusses the impact of digital transformation in the energy space amidst the launch of a new wind turbine platform

A

s one of the world’s largest wind turbine manufacturers, Nordex Group provides high-yield, cost-efficient wind turbines

under the Acciona Windpower and Nordex brands.

Nordex has production facilities in Germany, Spain, Brazil, the US, Argentina, Mexico and India 130

and produces nacelles, hubs, rotor blades and concrete towers across its offices in 25 countries.

Following its acquisition of Acciona Windpower in 2016, Nordex became a major player in the energy space.

John McComas is Head of Project Management at Nordex North America. Having originally joined Acciona Windpower North America in August 2007 as a Supply Chain Analyst, McComas worked in several different positions before moving into his current role in May 2017. Having achieved considerable success over the past few years, McComas points to his company’s product line as a driving factor. “Our product line between the Nordex and Acciona turbines is flexible, cost effective, and client driven,” explains McComas. We’re not afraid of entering into markets where other organisations feel uncomfortable.”

APRIL 2020

131

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NORDEX GROUP

“ WE CAN’T HAVE JUST ONE WAY OF DOING THINGS ACROSS A DIVERSE RANGE OF MARKETS. IT’S IMPORTANT THAT WE ADAPT TO WHAT THE REQUIREMENTS ARE” — John McComas, Head of Project Management, Nordex North America

A key area of priority to McComas is the company’s client approach.

“We have an approach with our clients which is quite the opposite of ‘take it or leave it’,” he says. “It’s about trying to foster a relationship

132

and learn what the constraints, challenges and economic model inputs are in order for the projects to be successful.” Having worked in several different markets, McComas acknowledges that every individual sector has its own unique challenges.

“What makes us successful is our approach,” he explains.

“We can’t have just one way of doing things across a diverse range of markets. It’s important that we adapt to what the requirements are.”

Another important area of focus to McComas is the introduction of new technology. He understands the growing impact digitalisation is APRIL 2020

Delta4000 Series Start: N149/5X & N163/5X (ENG) CLICK TO WATCH

|

3:13

133 having on the energy industry and

Since its purchase of Acciona

beyond. “Digital transformation

Windpower in 2016, there has been

is one of the biggest opportunities

a noticeable shift in operations.

facing most markets at the moment,”

“Acciona Windpower product technol-

says McComas. “We used to spend

ogy was typically deployed in large

lots of time and effort collecting,

wind farms cost of energy focused

analyzing and correcting information

markets, in comparison to the Nordex

and data that came to us from paper-

technology which was deployed at

based sources. We’re flooded by

smaller wind farms in Europe that

the onset of tools, techniques, pro-

had specific requirements,” says

cesses and data, so it’s important

McComas. “Those requirements

that we use it in the right way. With

were prevalent primarily in Germany,

increased efficiency comes the

Scandinavia and the UK and that

opportunity to be safer, more quality

technology was very successful

centered, and strategic.

in those markets. However, since the w w w.e ne rgydi gi ta l. com

NORDEX GROUP

134

“ DIGITAL TRANSFORMATION IS ONE OF THE BIGGEST OPPORTUNITIES FACING MOST MARKETS AT THE MOMENT” — John McComas, Head of Project Management, Nordex North America

to launch a turbine platform with

merge a few years ago, we have put

strategy. The Delta4000 turbine

in considerable effort to combine that

adapts to the grid operators’ individ-

technology into one platform.”

ual needs, local wind conditions as

a flexible rating as part of its core design philosophy and operation

That platform is the Delta4000. The

well as noise constraints. Through

Nordex Group was the first company

the platform, the Nordex Group relies

APRIL 2020

on tried-and-tested series production

to create a platform that best serves

technology. The primary aim is to

the needs of our clients,” explains

reduce the cost of energy by design-

McComas. “This product line is a sig-

ing turbines which provide much

nal to the marketplace that the merger

higher yields from any given site. Its

between both organisations has been

Delta 4000 portfolio demonstrates

finalised and our recent commercial

the N155/4.5, N133/4.8, N149/5.X

success with it proved that we are

and N163/5.X wind turbines.

here to stay.”

McComas believes that the new

McComas believes in the value of

platform delivers a clear message

partnerships. Nordex has established

to the marketplace. “What we set out

key, strategic relationships with Appia

to do was take the best parts from

Wind Services, DSV Air & Sea and

both the Nordex and Acciona plat-

ATS, in addition to collaborations with

forms and merge them together

global energy leaders such as Engie,

E XE CU T I VE PRO FI LE

John McComas John McComas is a results-orientated, strategic and bi-lingual manager with experience in a range of wind farm supply and construction. McComas has a verifiable track record in four different countries for the successful completion of utility scale projects ranging from 45 to 304.5MWs. He manages site teams, maintaining the site P&L and creating positive working relationships with colleagues, contractors, suppliers and clients. He has been in his current position since May 2017. w w w.e ne rgydi gi ta l. com

135

Appia Wind Services is a company dedicated to blade maintenance and repairs in the composite wind energy field. We provide rapid deployment of experienced technicians to complete tasks at hand.

Learn More

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1985

Year founded

6,800 Number of employees

137

Announcing N163/5X CLICK TO WATCH

|

0:32

w w w.e ne rgydi gi ta l. com

NORDEX GROUP

WIND PROJECT SERVICES

• Asset-based project management solutions

• Continental U.S., Canada, Mexico, Alaska, Hawaii & Caribbean

• Hands-on, multi-modal services

• More than 65 years of experience

• In-house route surveying and technical services team

• Reliable turnkey solution for your next project

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Enel, Duke, Acciona Energy, and others “We want to work hand in hand with our clients in order to generate collaborative solutions,” he says.

“It’s important that we meet our commitments and ensure that we’re transparent and are working together in a collaborative manner to resolve issues. We understand that if we make a mistake then being open and honest is essential. We don’t try and hide; we strive to learn from our mistakes. Being open and honest with 139

NXG Service Technicians EN V1 CLICK TO WATCH

|

0:28

w w w.e ne rgydi gi ta l. com

NORDEX GROUP

“ Being open and honest with every partnership is essential and if we want to foster long-term growth, we understand we have to work collaboratively and transparently”

140

— John McComas, Head of Project Management, Nordex North America

APRIL 2020

every partnership is essential and if we want to foster long-term growth, we understand we have to work collaboratively and transparently.”

With the future in mind, McComas has a vision of where he expects Nordex to be over the next few years.

“We’ve almost doubled the growth of the overall organisation in just a few years and we aim to continue in that vein,” he says. “Moving forward, our plan is to focus on the execution of our commitments and make sure we deliver on the projects that we’re undertaking.” McComas also harbours ambitions of transforming The Nordex Group to being considered a leader in wind turbine supply construction and commissioning. “It’s a pivotal year for us,” summarises McComas.

“We’ve already established ourselves as a top tier supplier globally for wind turbines and we want to continue to scale.”

w w w.e ne rgydi gi ta l. com

141

142

APRIL 2020

Stockholm Data Parks: making the modern sustainable city WRITTEN BY

WILL GIRLING PRODUCED BY

TOM VENTURO

w w w.e ne rgydi gi ta l. com

143

S T O C K H O L M D ATA PA R K S

Erik Rylander, Head of Stockholm Data Parks and Open District Heating, explains how data centres may be the key to creating a sustainable digital city

S

tockholm Data Parks (SDP) represents an advanced infrastructure offering to the data centre industry; a partnership

between it, district heating/cooling provider Stockholm Exergi, electricity distributor Ellevio, dark fibre provider Stokab and the City of 144

Stockholm. Collectively driven by a vision of creating a sustainable, waste-free city that’s entirely free of fossil fuels by 2040, SDP’s contribution lies in the unique opportunity presented by the rapidly expanding data centre sector. Focused on making Stockholm as attractive to the industry as possible, the initiative believes that the waste heat expended by data centres may hold the key to making the city a beacon of sustainability.

Erik Rylander, Head of SDP, knows the energy sector well and put his insights to good use when the idea was first launched. “My career has been a mixture of very different fields within energy and it has been mostly centred on heating and cooling, but also gas. With SDP, we really took the initiative to make the data center industry more sustainable.”

Although heat recovery is now widely accepted by APRIL 2020

145

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S T O C K H O L M D ATA PA R K S

the European industry, this was

146

“At that time, the industry was very sceptical. It didn’t really see the need for it; people saw it as a problem and didn’t want to start implementing new solutions” Erik Rylander, Head of Stockholm Data Parks and Open District Heating

not always the case. Spotting the opportunity relatively early (circa 2014-15), SDP anticipated the global shift towards the widespread adoption of eco-friendly measures in business, though others were left perplexed.

“At that time, the industry was very sceptical,” explains Rylander. “People didn’t really see the need for it; they saw it as a problem and didn’t want to start implementing new technology.” Adding to the opposition was a customer base that was seemingly indifferent, and a paucity of environmental initiatives on the global stage.

“Now, it’s really different: many things have happened to help us move into the position we are in. For example, Greenpeace started to publish the Click Clean Report and then the Paris Agreement came around in 2016,” says Rylander. With industry heavyweights like Microsoft now edging towards carbon-negativity and Jeff Bezos of Amazon pledging US$10bn to fight climate change, SDP is truly a pioneer in promoting sustainability schemes that are taking more widespread precedence in 2020.

APRIL 2020

Stockholm Data Parks CLICK TO WATCH

|

1:43

147

Also the Head of Open District

temperature). “If we can buy heat from

Heating (ODH) at Stockholm Exergi,

someone at a price lower than it would

Rylander explains that the whole

have cost to produce it, that’s the real

process actually starts with ODH,

business behind heat recovery: we

which provides the business model

are saving money and companies will

of the venture. Taking advantage of a

be paid for something that is generally

2,800km network of district heating/

regarded as waste,” Rylander states.

cooling pipes that snake underground

By establishing a market for waste heat

around Stockholm, a scheme was

in Stockholm, ODH is playing an essen-

started in 2014 wherein businesses

tial part in helping Stockholm reach

were approached and asked if they

its goal of using 100% renewable or

were willing to sell their excess/

recovered energy for its district heat-

wasted heat energy on a fluctuating

ing by 2030, as well as being totally

price scale (depending on the outside

carbon neutral by 2040. “Currently, w w w.e ne rgydi gi ta l. com

S T O C K H O L M D ATA PA R K S

148

we are 90% carbon neutral, so that

data centre investments to Stockholm

remaining 10% will need to be offset

and, by extension, a greater pool of

and one way to do that is to increase

heat recovery potential. “Our purpose

the use of heat recovery.”

remains to make this city more sustain-

After several pilot studies were

able because we, as the providers of

launched in 2016 to identify how heat

heating and cooling in the city, have a

recovery could best be utilised, it was

responsibility to furthering sustainabil-

discovered that the data centre indus-

ity,” says Rylander. “It’s really important

try provided the most effective source.

that we make the City of Stockholm

With the global data industry’s total

fit for the future.” With its focus on the

consumption of electricity estimated

rapidly growing data centre sector,

at a huge 416.2 TWh (the entire UK’s

which is also highly compatible with an

consumption is roughly 300 TWh),

urban environment, SDP provides the

SDP was established to attract more

catalyst for scaling up this vision.

APRIL 2020

Favouring an approach which

adjusted its product portfolio to fit

establishes trusting and long-lasting

the heat recovery concept, Rylander

connections with partners and sup-

affirms that Carrier put its trust in heat

pliers, the collaboration with heat

recovery and took a chance to help it

pump supplier Carrier is an example

succeed. “Without them, we wouldn’t

of co-operation morphing into endur-

have been able to get as far as we

ing synergy. “Carrier has been an

have,” he says.

important partner to the heat recovery

Success might be inevitable for

concept,” explains Rylander. “From

the SDP initiative, as it ties in with a

an early point, it showed a strong

growing global movement: the circular

commitment and belief in the idea;

economy. Seeking to eliminate ‘one

Carrier also believes that heat recovery

use’ methodologies in business, cir-

will become increasingly important.”

cular economic ideas revolve around

Stating that the company actually

the principle of minimising ‘inputs’ and

E XE CU T I VE PRO FI LE

Erik Rylander Erik Rylander, MSc. Royal Institute of Technology, Stockholm, Sweden, is the head of Stockholm Data Parks at Stockholm Exergy (former Fortum Värme). Mr. Rylander has a long career within Fortum in different managerial positions. In recent years he has played a leading role in the development and deployment of Stockholm Exergi’s business model that allow data centers to turn costs for cooling into revenue from recovered heat.

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149

S T O C K H O L M D ATA PA R K S

maximising the reusing, remaking and recycling of waste products. “It’s really about reusing whatever you can again and again so that you are not wasting anything,” Rylander explains. “Heat is generated whilst running data servers, which we can then capture and reuse as energy to heat Stockholm.

Technically the included components are well established, but, for some cities, installing a decent heating system might be an issue.” This is the main benefit of Stockholm’s infrastructure

SMART HEATING PRODUCTION Carrier is a world leader in high technology HVAC solutions that includes an extensive range of data center cooling and heat recovery solutions for district heating applications.

Our mission is to offer customers the benefit of our extensive experience with many projects already delivered and be their first choice.

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AquaForce, at the heart of smart city, providing both natural and wasted heat sources to multiple applications.

151 - 95% of the buildings in the city are connected to a heating system that can be utilised for heat recovery. It is a testament to SDP’s innovative concept, which, whilst not relying on cuttingedge technology, demonstrates an intelligent usage of existing infrastructure to make it work.

Sweden’s low power cost (approximately €0.19 per kWh) and low national carbon footprint (20g of carbon per

“If we can buy heat from someone at a price lower than it would have cost to produce it, that’s the real business behind heat recovery: we are saving money and companies will be paid for something that is generally regarded as waste”

kWh, as opposed to the EU average of 450g) provide additional incentives to data centre companies scouting areas for investment. The country’s

Erik Rylander, Head of Stockholm Data Parks and Open District Heating

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S T O C K H O L M D ATA PA R K S

152

APRIL 2020

CO MPAN Y FACT S

• Currently, we are 90% carbon neutral, so that remaining 10% will need to be offset and one way to do that is to increase the usage of heat recovery

strong stance on combating climate change could make it very attractive to tech industry hyperscalers - such as Facebook and Google - who are looking for effective ways to simultaneously expand their business and mitigate their carbon emissions. Validation of SDP’s concept was given in 2017 when the Kista data park was established north of Stockholm. “The first milestone we had to reach was international investment coming into Sweden on this platform. That is what we achieved with the Kista site,” Rylander says. “As data centres grow, we will be able to recover approximately 40MW of heat from them, enough to heat around 80,000 modern residential flats.” This was followed in 2019 with w w w.e ne rgydi gi ta l. com

153

S T O C K H O L M D ATA PA R K S

154

the launch of the Brista site as an opportunity for data center invest-

“Our purpose remains to make this city more sustainable because we, as the providers of heating and cooling in the city, have a responsibility to furthering sustainability” Erik Rylander, Head of Stockholm Data Parks and Open District Heating APRIL 2020

ment, with plans to launch a third site in Skarpnäck, south of Stockholm, currently underway.

An added benefit of Stockholm is its wide-spread optical network connecting practically all buildings in the city. Further, the city is exceptionally well connected to the rest of Europe with more than 350 million end-users reachable with 30 milliseconds of round-trip delay.

155

Looking forward to 2020, Rylander

scientists have been able to identify

is keen for SDP’s signed contracts to

which will allow us to reach the targets

materialise into construction projects.

of the Paris Agreement globally without

Now that the initiative’s concept has

carbon capture and storage,” he claims.

been proved, SDP will continue to push

“The data centre industry already

for Stockholm to be a truly modern city:

understands that this is the next phase

sustainable, low-carbon and digital.

to move into. We have a good start-

However, not satisfied with merely

ing point for applying carbon capture

achieving carbon neutrality, Rylander’s

technology that will eventually bring

company - Stockholm Exergi – will

negative emissions into the market.”

also be exploring taking sustainability to the next level with carbon capture technology. “There is no scenario that w w w.e ne rgydi gi ta l. com

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