Energy Digital October 2019

How SIMEC is boosting the viability of utility-scale renewable energy

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OC T OB E R 2 0 19

DIGITAL TRANSFORMATION OF GAS LEAK DETECTION

Data-driven change in the energy sector

SA POWER NETWORKS

The transformation driving an award-winning digital utility

Sustainable Cities

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FOREWORD

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elcome to the October issue of Energy Digital!

As the operator of South Australia’s electricity distribution network, SA Power Networks faces a significant challenge in both effective management and consistent service from the most urban to the most rural environments in the region. Over the past five years, an IT transformation spearheaded by Chris Ford, GM of Technology and Innovation, has resulted in the organisation receiving the Digital Utility of the Year award for 2019. In this month’s cover feature, we take a close look at the strategy behind the electrifying success.

Elsewhere in this month’s issue, we have exclusive comment from Requis on the firm’s pioneering supply chain management platform that is set to revolutionise visibility, accessibility

and efficiency for energy companies around the world. We also take an in-depth look at the rise of LNG in recent years, and the biggest global players capitalising on the bridge fuel’s benefits over oil and coal.

October’s Top 10 counts down the world’s most sustainable cities, as ranked by Arcadis’s Sustainable Cities Index. As always, we have also compiled a list of some of the biggest upcoming energy and sustainability events from around the globe.

Don’t forget to check out our cuttingedge profiles of SIMEC Energy, Health Consultants, and Flogas.

If you would like to be featured in an upcoming issue of Energy Digital, please get in touch at marcus. lawrence@bizclikmedia.com Enjoy the issue!

Marcus Lawrence

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Click the home icon (top right of page) to return to contents page at anytime EDITOR-IN-CHIEF

MARCUS LAWRENCE MANAGING EDITOR

MATT HIGH CREATIVE DIRECTORS

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CONTENTS

12 SA POWER NETWORKS’ JOURNEY TO A DIGITAL UTILITY How and why LNG has grown in prominence across the energy sector

32

How Requis is revolutionising supply chain management in the energy sector

44

56 The challenge of sustainable packaging

Science based targets: how can Big Data help those committed to change?

76 SUSTAINABLE CITIES

66

92 The biggest sustainability events

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114 Heath Consultants

128 Flogas

12

SA POWER NETWORKS’ JOURNEY TO A DIGITAL UTILITY WRITTEN BY

JOHN O’HANLON PRODUCED BY

ANDY TURNER

OCTOBER 2019

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SA POWER NETWORKS

SA Power Networks provides energy to South Australia. Over five years, the transformation of its award-winning IT team, led

by Chris Ford, has demonstrated the power of innovation

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ith 1.75mn people dispersed over an area of nearly a million square kilometres, the job of distributing electricity to all South

Australia’s inhabitants is no small one. While the vast majority live in Adelaide, supplies need to reach 14

people in upcountry communities like Port Augusta, Nullarbor or Oodnadatta (which lies more than 1,000km from the capital). The job of supplying and maintaining the power infrastructure across this sprawling state, about the size of Germany and France combined, falls to SA Power Networks (SAPN), which employs more than 2,000 people, including an IT team of around 250.

Before Chris Ford was appointed CIO, the IT organisation had yet to live up to its full potential or be recognised as a vital part of the wider business – a familiar story. CEO Rob Stobbe recognised that IT could no longer be seen as a backroom function if the company were to meet the strategic goals of the Future Operating Model it was developing. In 2014, he brought in someone with more than 25 years’ of senior leadership experience, both within OCTOBER 2019

15

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SA POWER NETWORKS

“ A key pillar of our success as a leadership team has been our willingness to listen” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

and beyond IT, in large regulated enterprises. Previously, the IT leadership had reported indirectly to the senior leadership but Ford was brought straight into the executive team to help drive forward and digitise the business strategy. Five years on, his role has been redefined and broadened to that of General Manager of Innovation and Technology.

It’s refreshing to talk to Ford about his journey so far and his vision for the future. Not afraid of risk, experimentation or even vulnerability, his mind is as

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OCTOBER 2019

CLICK TO WATCH : ‘SA POWER NETWORKS – APPRENTICE RECRUITMENT’ 17 much on the people and their engage-

TECHNOLOGY SERVING BUSINESS GOALS

ment as on the nuts and bolts of IT.

Nevertheless, the technology did need

“Technology has changed, of course,

fixing, so the IT leadership team was

but I think the changes in management

radically restructured in 2014 and their

and leadership techniques and ways of

style of working changed. A compre-

working are just as important. Though

hensive review of the way the organisa-

I lead the technology function my real

tion handled its day-to-day processes

focus and strength is in people leader-

took the existing data storage and

ship, the development of capability and

enterprise functions onto the cloud. In

team building.” The evolution of a future

2016, it transitioned its legacy SAP ERP

business strategy, he believes, should

and BW platforms to SAP HANA, giving

go hand in hand with personal evolution

the workforce a database and reporting

and development: change is the engine

system relying on live data and making

of growth, and he has set ‘always evol-

regulatory compliance more depend-

ving’ as one of the IT team’s mantras.

able in a major migration exercise in w w w.e ne rgydi gi ta l. com

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.

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operations, My Workday massively sim-

Previously teams going out to restore

plified payroll, while across the business

storm outages, for example, used paper

the roll-out of MS Office 365 provided

maps to locate sites but now they use

employees with tools such as SharePoint

the SAP Work Manager app running on

and Team sites to bring the organisa-

SAP Mobile to access all the informa-

tion together.

tion they need for the job. This alone is saving 2,400 working hours a year.

Earlier this year, SAPN was proclaimed

Ford believes that one of the keys to success is forging strong partnerships with key suppliers. The relationship

Australia’s Digital Utility of the Year for

with Microsoft has been a great example

Energy. Its Digital Strategy, unveiled in

of this, culminating in a study tour to

2018, was a big part of that thanks to

Microsoft’s head office in Redmond

its record of cloud migration and the auto-

last year. Ford says: “we were early

mation of many manual processes. Just

adopters of Office 365 and Microsoft

as Work Manager streamlined field

have worked very collaboratively with

E XE CU T I VE PRO FI LE

Chris Ford Chris Ford is an internationally experienced Chief Information Officer with a proven track record of delivery in large private, government and regulated organisations. He is responsible for driving the digital transformation of SA Power Networks.

Ford’s management responsibilities include all aspects of Information Technology, from supporting the day-to-day operations of the business through to delivery of the long-term business strategies enabled by the implementation of innovative, cost-effective and reliable information technology.

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SA POWER NETWORKS

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OCTOBER 2019

“ It is about giving people permission to take ownership of a problem, then go and fix it” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

21

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us to ensure we maximise the value of the investment. We have really promoted the use of ‘Teams’ to improve collaboration across the organisation and it has been embraced by every group that has tried it.”

Leadership strategy benefited too, with the Corporate Portfolio Management Office (CPMO) being given a MS Power BI dashboard that has enabled management to create and share reports and images and insource a lot of contract work. It increased the team’s ability to develop projects and cut the time and effort involved in producing reports.

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That project helped the CPMO win the award of PMO of the year at the PMI Australia awards in 2018. The Digital

ogy to identify the images on CAD

Strategy, set to be fully in place by

drawings and then machine learning

2025, aims to create a seamless cust-

algorithms to correct and improve them

omer experience through automation

before transferring them to a digital

and equipping the workforce with

drawing. More than 6,000 Quicksilver

digital tools based on robust core

files were converted to intelligent

IT platforms.

AutoCAD drawing files using a machine

The most successful demonstration

learning algorithm while 60,000 files

of the new work culture arose from the

were transferred into Autodesk Vault,

challenge Ford gave to his young deve-

says Ford. “The MLA project was

lopers and engineers to convert thou-

a great success – it saved thousands of

sands of old CAD drawings from different

labour hours and improved the quality

sources onto one new platform. The

and accuracy of our drawings.” The

team used facial recognition technol-

project won two awards – the 2018 w w w.e ne rgydi gi ta l. com

SA POWER NETWORKS

Digital Utility Award for ‘Best Use of Technology’ and ICT Project of the Year at the 2018 SA Australian Institute of Project Management.

THE ART OF THE UNEXPECTED The literature of leadership has tended to concentrate on getting the most out of people in much the same way as you’d maintain a machine. Ford doesn’t tick that way, though he does encourage his leadership team to engage with writers like Brené Brown and Aaron Dignan who challenge received thinking.

24

He likes to embrace VUCA (volatility, complexity, uncertainty and ambiguity), seeing these seemingly negative or threatening concepts as occasions for growth. “I think the whole style of leadership is currently changing. These people are talking about vulnerability, even as a leader, and being open to your team so they see you as someone with integrity. A key pillar of our success as a leadership team has been our willingness to listen to and work with people across the organisation to improve the way we work.”

One of the first changes Ford made was to join his team in an open office.

IT people are by nature introspective, OCTOBER 2019

he admits – they relish the solitary joy of coding. To encourage intermingling he created a large kitchen area and banned eating at one’s desk. Not only does the team have to eat together, but they are asked to sit with someone they don’t know. “We have created a real buzz in that kitchen as people step out of their comfort zone and share their experiences of both work and life.”

No doubt the kitchen is an incubator of ideas brought before a monthly gettogether called Shark Tank where IT team members can have 15 minutes to present an idea, using no more than four slides. The idea is to share a story of success and challenges overcome, and get feedback from colleagues.

Belying the title, it’s a supportive rather than a critical space, where anyone has the opportunity to gain confidence and show how a simple solution often produces a beneficial result. “It is about giving people permission to take ownership of a problem, then go and fix it,” says Ford.

SAPN has many long-serving staff. For those who had been doing things the same way for many years it must have been a shock when they were asked to embrace Agile working – to challenge w w w.e ne rgydi gi ta l. com

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SA POWER NETWORKS

26

without inhibition, and to be challenged

especially for Agile projects. When we

in return. “We started on a journey of

started rolling out Agile, there was

training the IT function first about what

scepticism but then people started to

Agile meant and how it could add value

notice these stand-up meetings and

to the organisation. Slowly over time,

seeing they looked like fun. It’s a viral

we started to engage the wider organisa-

change. If you create pockets of

tion each time a business project needed

energy and enthusiasm people build

a sponsor. So we started to extend our

upon that energy and want to be part

Agile transformation into other parts

of this new revolution.”

of the business as we got better at it.

We have a lot of stand-up meetings, OCTOBER 2019

No wonder then that employee engagement scores went up from

“Our objective is to reduce organisational costs so that customer bills are kept as low as they can be” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

27

below 70% in 2015 to 91% in 2017 –

ing to come into the office in the morning

helped by the abandonment of hierarchy

and feel their energy and enthusiasm.”

in favour of self-motivated teamwork.

Much more important than the awards

WALKING THE WALK

Ford has received are the accolades

The IT building just across the road

he gets from long-service employees

from SAPN headquarters in Adelaide is

who tell him that the simple ability to

an environment Ford is proud of because

get problems solved make these the

it nurtures initiative within the group.

most exciting times they have known. “I

In a traditional organisation, change is

am so proud of the teams,” he enthuses.

often resisted. “I wanted to show the

“I love my work anyway but it’s very warm-

team what a different way of working w w w.e ne rgydi gi ta l. com

SA POWER NETWORKS

“ I am so proud of the teams. It’s very warming to come into the office in the morning and feel their energy and enthusiasm” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

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OCTOBER 2019

might look like. I believe that together we’ve brought about a cultural transformation because people have found the confidence to try something different; to experiment and to not be afraid of failure and to be confident to challenge one another and be challenged in return.”

The boss sharing an open office is not unheard of perhaps, but five years ago it was a breath of fresh air for SA Power Networks, as was the invitation to people to do their own thing. The staff introduced spontaneous lunchtime slots where team members can run a session on something of interest to them. For example, one person with an interest in meditation started a regular 20-minute meditation and mindfulness slot, while others might focus on aspects of professional development.

“People are becoming teachers as well as students,” he says.

Around the edge of the office there’s an open track to make it easy for people to move around, and meet and collaborate with others. The track inspired one of the team’s more engaging efforts – a collaboration to produce a robot that could navigate the walking track. “The Rise of the Robots was fun and at the same time brought out so many brilliant w w w.e ne rgydi gi ta l. com

29

SA POWER NETWORKS

ideas. One outcome I hadn’t anticipated was how it brought into play the diversity of the team.” With some 40 different countries of origin represented, there’s no lack of different ways of approaching problems, he adds.

All that is good fun – but it’s fun that benefits the business. Inclusion is at the heart of Ford’s approach. “In developing the digital strategy we took a codesign and co-create approach, getting people across the organisation to work with us and share their vision of the business’s future so we could work out 30

how digital technology could support them in achieving those goals. It is as much about business future as about technology. After all, our objective is to reduce organisational costs so that customer bills are kept as low as they can be.”

With a positive approach to ethnic diversity, Ford is also passionate about giving equal opportunity to women, as well as girls who are considering a future career in the utility sector. Members of his leadership team speak in local schools about succeeding as a woman in the industry and encourage girls to take up STEM subjects. As well as mentoring women within the organisaOCTOBER 2019

1946

Year founded

2,000

Approximate number of employees

31

tion, he is himself ‘reverse-mentored’ by one of his young female field workers, a process which he describes as inspirational. All this has led to a transformation his entire team can be proud of, he concludes. “Being named Digital Utility of the year for Energy in 2019 is the culmination of five years of hard work: it really gives us feeling that we’re getting it right.”

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ENERGY MANAGEMENT

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OCTOBER 2019

How and why LNG has grown in prominence across the energy sector Energy Digital takes a look at liquefied natural gas (LNG) and the organisations that are producing and distributing it in the fast-growing industry WRITTEN BY

GEORGIA WILSON

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ENERGY MANAGEMENT

W

ith global energy demand expected to grow by a further 18% by 2035, over the coming decades liquefied natural gas (LNG) is

predicted to be a fast-growing fossil fuel of choice

due to its vast quantity, lesser environmental impacts over coal and oil, versatility and safety. LNG trade increased from 100mn tonnes in 2000 to nearly 300mn tonnes in 2017.

LNG is the liquification process of natural gas – extracted from beneath the earth’s crust –predominantly comprised of methane. The natural gas 34

is cooled to -162oC (-260oF) in order to liquify it and, as a result, occupy 600 times less space., This makes long distance and overseas transportation easier and more economical. Once transportation is complete, LNG goes through a regasification process for distribution.

WHY COUNTRIES ARE TURNING TO LNG LNG currently is a vastly untapped resource; the US alone has an estimated 2,384trnn cubic feet of recoverable resources (2013). When burned, natural gas produces 45% less carbon dioxide than coal, 30% less than oil, and 15% less than wood, making LNG a preferred environmental alternative.

It is estimated that if LNG was used to displace coal in China it would reduce CO2 emissions by 60 to 90mn tonnes per year.

OCTOBER 2019

35

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ENERGY MANAGEMENT

“ Global energy demand is expected to grow by a further 18% by 2035”

fuels, over the long-term it is not a fix for current environmental conditions.

LNG is not a renewable resource like wind and solar power; it is still a fossil fuel that will eventually run out, and still produces CO2 when it is burnt for heat or electricity by consumers. Additionally, within its own value chain, LNG requires high amounts of energy during liquefaction and regasification, resulting in the production of GHG emissions in the periphery of the gas itself.

Nevertheless, LNG is still a better alternative to coal, nuclear and oil for

36

reasons of GHG emissions, safety LNG has enough horsepower to be

and abundance. Therefore, short-

used by industrial, commercial and res-

term LNG is being used by compa-

idential users, and can be compressed

nies such as NRG Energy and Origin

to form compressed natural gas (CNG)

Energy are to repower their plants

to allow natural gas usage in vehicles

with LNG so that, in the long-term,

such as Ford’s new model, Ford Aspire.

companies can naturally retire their

Compared with other fossil fuels, LNG

current plants and replace them with

is a much safer option. When exposed

renewable alternatives.

to a source of heat, LNG will vaporise back into a natural gas leaving no residue behind, as well as only being

WHO IS CURRENTLY PROVIDING AND DISTRIBUTING LNG?

flammable when there is a gas-to-air concentration of 5-15%.

While LNG is less environmentally impactful than more traditional fossil OCTOBER 2019

LNG CANADA Formed in 2018 with support from the First Nations group, all levels of

CLICK TO WATCH : ‘SHELL LNG - TOMORROW’S FUEL TODAY. A NEW, CLEANER, TRANSPORT FUEL | NATURAL GAS’ 37

community, LNG Canada is a joint ven-

WHAT WILL THE NEW LNG CANADA FACILITY DO?

ture (JV) between Shell, Petronas,

• LNG processing units – Carbon

government, business, labour and the

PetroChina, Mitsubishi Corporation

dioxide, water, condensate, sulphur

and Korea Gas Corporation (KOGAS).

and other impurities will be removed,

Its export facilities are based in

followed by being chilled to

Kitimat (British Columbia), the second

approximately -162oC to turn the

largest reserve in Canada that is also

gas into LNG. The units have the

close to Asian markets for LNG

capacity to produce 14mn tonnes

Canada to export to. From the

per year.

beginning, LNG Canada has had safety, economic, environmental and

• Storage tanks, loading lines and

community interests at the forefront

marine terminals – Processed LNG

of its strategy to put Canada on the

will be piped to storage tanks until

map for LNG exportation.

ready for loading on LNG carriers at w w w.e ne rgydi gi ta l. com

ENERGY MANAGEMENT

the Wharf. To accommodate this two LNG loading lines will transfer the LNG to the Wharf and LNG carriers. In addition, an existing wharf will be redesigned to hold up to two LNG carriers at a time.

• Rail yard – Inside the facility, a railyard will be connected to an existing system to load and transport condensate (a petroleum liquid) for sale to customers.

38

• Water treatment facility – Water will be drawn from the Kitimat River to be used for predominately cooling and drinking.

Water taken will be treated as needed and reused in a closed loop system to reduce water loss.

• Flare stacks – Acting as a safety device, two flare stacks – one 60m tall and the other standing at 125m – will be installed. When operating normally, a three-metre clean burning pilot light flame will be at the top of the stack.

• Workforce accommodation – To limit the impact of an influx of people at Kitimat, LNG Canada is OCTOBER 2019

© Wikipedia Kitimat River

building a workforce accommodation centre called Cedar Valley Lodge that can hold up to 7,500 people.

ROYAL DUTCH SHELL Established in 1907, Shell operates in over 70 countries, and is currently diversifying its offering to provide cleaner energy solutions in line with increasing demands for sustainable energy.

39

Shell has been a developer of LNG for over 50 years. Over those years, Shell has been involved with many LNG project including the first

“ LNG trade increased from 100mn tonnes in 2000 to nearly 300mn tonnes in 2017”

LNG liquefaction plant, established in 1964. Today, Shell is developing a Floating LNG (FLNG) production facility in order to gain access to resources underwater.

Shell is involved with every stage of the LNG value chain and has access to over 40mn tonnes of regasification capacity, 13 liquification plants, and operates 20% of the world’s LNG shipping with nearly 100 carriers.

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ENERGY MANAGEMENT

40

to include: Japan, Korea, Spain,

KOREA GAS CORPORATION (KOGAS)

France, Italy, Turkey, Mexico, the US,

Incorporated by the Korean govern-

Asia and Australia. This is along with

ment in 1983, KOGAS is one of the

supply projects in the West Pacific,

world’s largest importers and distribu-

Nigeria, Australia, Oman, Qatar, Rus-

tors of LNG, and is the nation’s sole

sia, South Caribbean, Peru, Egypt,

provider. Currently, KOGAS has 17

UK and India. In 2018, Shell sold a

power generation plants and 10 power

total of 71mn tonnes of LNG.

generation companies supplying LNG to Korea. The company operates four

Chief Executive Officer:

LNG terminals and a nationwide

Ben van Beurden

pipeline network to supply the imports from around the world to power generation plants, gas-utility compa-

OCTOBER 2019

“ When burned, natural gas produces 45% less carbon dioxide than coal, 30% less than oil, and 15% less than wood�

WOODSIDE ENERGY Established in 1954, Woodside Energy is a leading LNG producer in Australia. Since 1989, Woodside Energy has delivered over 5000 LNG cargos to international customers nies and city gas companies through-

to date, and produces 6% of the

out Korea.

global LNG supply. Woodside Energy

To provide a stable supply of LNG

currently supplies LNG to Africa,

volume to the nation, KOGAS has

India, Egypt, Kuwait, Belgium the US

invested in numerous LNG research

Gulf Coast and Asia-Pacific regions.

and development, exploration, pro-

Current LNG capacity for Woodside

duction, distribution and compres-

Energy vehicles is 63,000 tonnes

sion projects.

of LNG.

President:

CEO and Managing Director:

Hee-Bong Chae

Peter J Coleman

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ENERGY

44

How is revolutionising supply chain management in the energy sector Richard Martin, CEO at Requis, discusses the firm’s cutting-edge supply chain management platform that is revolutionising supply chain visibility, accessibility and efficiency for energy companies around the world EDITED BY

M ARCUS L AWRENCE

OCTOBER 2019

45

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ENERGY

W

hat is the function of the Requis platform and how does it add value for both Worley and the wider, global

energy sector?

Requis is a next generation supply chain

platform (SCM) that redefines how the enterprise demand chain and supply chain integrate throughout project and asset lifecycles. It’s not about demand or supply, but rather about the value that is generated across both chains. In fact, they are not actually chains, but rather an integrated network of participants who engage through Requis services centered around 46

industry-standard data sets including asset catalogues, inventory, surplus and 3D printing.

Although the term ‘supply chain’ may continue to be used, Requis is more aptly referred to as a value network platform.

Services such as procurement, vendor management and catalogue management are completely reimagined and integrated with other services such as rapid sourcing, access to 3D printing and a global surplus marketplace. All these services and more are available to the entire network of vetted Requis participants, all from one, secure platform.

The synergies with Worley are immense and, selfishly, we cannot be more fortunate in having them as a strategic investor, a trusted partner and a lead customer. Worley’s industry leaderOCTOBER 2019

“ Requis is a next generation supply chain platform (SCM) that redefines how the enterprise demand chain and supply chain integrate throughout project and asset lifecycles” Richard Martin, CEO, Requis

47

ship and credibility extend Requis’s reach by providing unprecedented access to resource, energy and chemical customers who have already begun to engage with Requis today.

In a general sense, what are the key drivers and aims of enhanced SCM in the energy sector?

When I played baseball, I remember asking my coach if I should work on my hitting, fielding or running, and his answer was: yes! My point is, there are a number of priorities thrown at supply chain professionw w w.e ne rgydi gi ta l. com

ENERGY

“A platform like Requis can help by making the supply chain more efficient, driving the reduction and reuse of surplus assets globally”

als: reduced costs, increased agility, reduced cycle times, reduced waste, reduced surplus, etc. But, based on recent customer interaction, I’ll simply state efficiency as the key driver of an enhanced supply chain.

Efficiency is driving many changes and investments in the market, and having an effective approach to supply chains is growing in importance. Under-

Richard Martin, CEO, Requis

standing the inventory of your own company before going out to market can have significant cost

48

savings and creates a much more

OCTOBER 2019

CLICK TO WATCH : ‘REQUIS – INTRODUCING REQUIS’ 49 streamlined approach to stock man-

What are the biggest challenges

agement. For some of our customers,

facing effective supply chain

stock visibility is a huge benefit from

management in the energy sector,

using the Requis platform. This al-

and what steps can companies take

lows companies to keep an appropri-

to overcome them?

ate level of stock and manage their

I believe there are two big challenges

inventory effectively.

to effective SCM in the energy sec-

If I had to call out another it would

tor. The first is simply making sure it

be competitive differentiation. If you

is a real priority. There can be many

can manage your supply chain better

competing priorities for a business, but

than your competitor, that means you

ensuring the supply chain is thought

can do it faster, for a higher margin,

about and managed is key. This is

with better quality. And in response

something the industry is starting to

to faster, higher and better, my coach

recognise. Supply chain roles are

would say: yes!

increasingly growing in importance w w w.e ne rgydi gi ta l. com

ENERGY

within organisations, with more and

enterprises are opening themselves

more taking up seats in management

up to a whole new world. Enterprises

teams and meetings.

can work with their existing suppliers

The second is the inherent discon-

50

in what we refer to as a Virtual Private

nected nature of the energy demand

Value Network (VPVN) and/or consider

chain and supply chain. I refer to this

new suppliers, or consider supplier or

as the Amazon problem. Where do you

operator surplus that is in the Requis

go when you are looking for some-

Global Marketplace. They can even

thing or need to sell something? Think

have visibility into their own surplus for

of the retail space before Amazon, or

reuse instead of buying assets they

even eBay for that matter. This divided

already own. They can compare prices,

dynamic leads to inefficiency from

they can see how a supplier or custom-

procurement through management,

er is rated, they can use analytics to

disposition and finally scrapping. It has

gain insights into their procurement or

led to warehouses and yards full of sur-

supplier, and can gain insights into their

plus with limited visibility. This is where

sales. The benefits are extensive and

the Requis platform comes in.

significant. None of this would be pos-

By connecting the players in the

sible without a supply chain ecosystem

supply chain to the same platform with

comprised of a mesh of thousands of

standardised asset data and services,

one to one relationships.

OCTOBER 2019

How have new technological innovations facilitated the development of solutions that enhance visibility and traceability across supply chains?

I believe the Requis platform is a great example of new technology innovation driving enhanced visibility and traceability across the entire supply chain and throughout the entire lifecycle.

One of the underlying building blocks of the Requis platform are standardised asset records. Where industry standards exist, we will look to adopt them, where gaps exist, we will seek

51

to contribute towards the establishment of standards. Our vision is to have that asset record created at birth and have this same asset record gather information throughout the life-

a step further in the Requis platform,

cycle of an asset until end of life. This

even the details of the transaction that

would incorporate other technologies

led to the change of ownership of an

such as IoT, for example, and it would

asset are fully auditable.

ultimately be a great application of blockchain. The result is something I’d

What do you view as the most

compare in North America to the Car-

promising emergent technologies

Fax: essentially allowing you to pull

for improved supply chain manage-

the entire history of a vehicle from its

ment in the energy sector?

initial sales tracking - geographically,

When I think about the potential for an

operationally and commercially - even

emerging technology, I consider the

though it has had many owners. Going

value of how the technology can opw w w.e ne rgydi gi ta l. com

ENERGY

timally be applied, tempered with the probability of that scenario materialising. Flying cars had tremendous promise in the 50s. Separately, I think it’s a mistake to think of these independently or in silos, rather than think of what application or solution holds the most promise and accept that it will incorporate a combination of these technologies. I’m more interested in the problem and resulting solution then a specific technology. That said, I’m a tech geek, I’m a great believer in automation, I like things to be automatic. In that regard 52

I’m a fan of IoT, AI and data. Requis will play a significant role in gathering asset lifecycle data and using that data to ensure enterprises are achieving a

“ The Requis platform is a great example of new technology innovation driving enhanced visibility and traceability across the entire supply chain and throughout the entire lifecycle” Richard Martin, CEO, Requis

maximum return on assets by enabling them to follow the path of highest economic return.

is doomed to end, and as a result, sustainability seems like the only

How do energy customers, both

viable path. Attitudes are changing

professional and commercial, stand

across the industry towards sustain-

to benefit from increased sustain-

ability, reducing waste and elongating

ability and ethical practices across

the life of assets and components.

energy sector supply chains?

This new way of thinking is impacting

I think the best way to approach the

the supply chain. For me, it’s less of

question of sustainability is by con-

a focus on circular economy or linear

sidering the counter argument. By

economy but more on how we can

definition something non-sustainable

establish a high-visibility supply net-

OCTOBER 2019

everybody nods to in agreement, but the real challenge is achieving that within other political constraints such as providing reasonable energy costs, with safe energy alternatives.

Nuclear, for example, is clean and inexpensive but carries a perceived safety risk that eliminates it as an option in many countries. A platform like Requis can help by making the supply chain more efficient, driving the reduction and reuse of surplus assets globally. It can connect nonfossil fuel participants in a new value network that drives the deployment and adoption of alternative energy assets. This new value network could circumvent existing inhibitors and enable a more direct system of subsidies and incentives to reach a work that creates economic incen-

critical mass of clean energy produc-

tive for the participant to adopt new,

tion. This is an important topic, and

sustainable behaviours.

the Requis team is motivated to help in any way we can.

Looking forward, how can powerful SCM platforms enable energy companies to adapt to legislative changes around the world pertaining to reduced reliance on fossil fuels?

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53

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

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The challenge of sustainable packaging Stefan Stadler, Team Lead at Domino’s Laser Academy, discusses the advent of consumer demand for sustainable packaging, the implementation challenges facing brands and the steps they can take to overcome the hurdles WRITTEN BY

STEFAN STADLER

OCTOBER 2019

57

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

“ Despite the availability of numerous packaging alternatives, these substitutes can also present their own challenges” — Stefan Stadler, Team Lead, Domino’s Laser Academy 58

C

limate Change has become the defining issue of our time,

begin implementing now.

Single-use plastic alternatives are

especially in light of statistics such as

under the spotlight and companies

those released by the European Parlia-

are focusing on alternatives. Dr Stefan

ment last year which revealed that only

Stadler, Team Lead at Domino’s Laser

30% of Europe’s plastic is recycled.

Academy, looks at why brands need to

Consumers are urging for change.

work closely with coding before they

Demand for sustainable packaging has

start looking at greener options, and

therefore taken centre stage and, with

marking experts to ensure that their

an EU directive on single-use plastics

new packaging alternatives will meet

set to come into force in 2021, organi-

all of their requirements.

sations are already looking toward the plastic alternatives which they can OCTOBER 2019

With an EU directive banning singleuse plastics – such as cutlery, cups,

59

cotton buds, straws, and balloon sticks

modifications to material can im-

– set to come into place in 2021, more

pact coding and marking opera-

environmentally-friendly options are

tions, making the possibility of roll

already being evaluated. Petroleum-

out even more complex. Due to this,

based material and multi-layer plastic

many organisations begin to ques-

films for food packaging are examples

tion whether it is possible to become

which are already in use. However, bio-

more sustainable, meet the legislative

based and recyclable alternatives are

demands, and keep their current cod-

still being explored for their viability.

ing and marking set up intact; doubts

Despite the availability of numer-

which can ultimately hold brands

ous packaging alternatives, these

back from pursuing these options.

substitutes can also present their

With companies setting ambitious

own challenges. Respectively, the

sustainable packaging goals in order to w w w.e ne rgydi gi ta l. com

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

60

“ A change in packaging material can pose some challenges to laser marking technology” — Stefan Stadler, Team Lead, Domino’s Laser Academy

OCTOBER 2019

get ahead of the competition and meet regulatory requirements, there has been a surge of new organic materials gaining recognition among manufacturers. To date, few of these materials have been fully adopted industry-wide, and there’s a reason for this. Although plant-based materials – such as starch – present themselves as an operable and sustainable solution, when it comes to an important stage of the packaging process (coding) the issue stands as to whether they can be coded to the same standard as their

plastic predecessor. It is this factor

packaging suppliers and, due to this,

which can ultimately stand in the way of

there have been instances where the

commercial adoption.

material composition has been slightly changed. From compound unavail-

A CODING AND MARKING SYSTEM FIT FOR USE

ability to simply being a cost-saving

A change in packaging material can

for this change; but to omit coding and

pose some challenges to laser marking

marking from any material specifica-

technology. Because of this, having the

tion change conversation is to put

ability to understand how different

production in jeopardy. This decision

substrates respond and react to light

enables companies – depending on what the process uncovers – to select an appropriate laser setting for testing.

measure, there can be many reasons

will be reflected within the coding, which can ultimately lead to downtime.

However, by working with a trusted coding

Post-laser, evaluation of the code

and marking partner,

quality as well as how the material has

organisations will

withstood the process needs to be

be able to access

measured through a range of scientific

the information

technologies. Code quality is analysed

they need. This way,

using barcode systems and camera validation, and powerful 3D microscopes determine how the laser has impacted the substrate. This

companies will know which substrates allow for the creation of clearer, higher quality

will ultimately dictate whether it

codes and, more impor-

is a material which can be used

tantly, they will have the

in production.

Currently, code-ability and

security of knowing that, if a setback is on the horizon,

printability do not form part of

it can be identified and re-

the material’s specification for

solved before it becomes a w w w.e ne rgydi gi ta l. com

61

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

62

“ With companies setting ambitious sustainable packaging goals in order to get ahead of the competition and meet regulatory requirements, there has been a surge of new organic materials gaining recognition among manufacturers” — Stefan Stadler, Team Lead, Domino’s Laser Academy

OCTOBER 2019

hindrance to production.

It is clear there is a growing public awareness of single-use plastic waste and its environmental impact.

In response to this, many brands are already leading the way for more sustainable ways of working, with large manufacturers attentively exploring alternatives to petroleum-based plastic packaging. However, the replacement of plastic isn’t without its challenges; the commercial viability of any proposed change to substrates is contingent on its ability to pass packaging regulations. Companies need to understand their options and, in partnership with their coding and marking supplier and through thorough testing, determine their optimal coding solution.

Doing this will enable companies to remain competitive without sacrificing quality or value. Taking this step will enable packaging to finally become a solution rather than a challenge when it comes to the future of sustainability.

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

66

Science based targets: how can Big Data help those committed to change?

Energy Digital looks at why companies should commit to science based targets, who has already done so and how Big Data could help to combat climate change WRITTEN BY

GEORGIA WIL SON

OCTOBER 2019

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

2015

saw 195 governments commit to the Paris Agreement to prevent dangerous climate

changes, with targets to limit increased global temperatures to below 2oC by the next century (2100).

Today, Science Based Targets (SBT) – a collaborative initiative between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI), the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments – aim to provide clear and ambitious objectives, approve and assess company targets, promote best practice, showcase companies in68

volved, and offer guidance and resources to those in the initiative and those wanting to join.

To date, 611 companies have committed to SBT’s call to action against climate change. The initiative states that many have “the skills, expertise and ingenuity to make this a reality – but need ambitious emissions reduction targets that ensure the transformational action they take is aligned with current climate science.”

WHY SET SCIENCE BASED TARGETS? Greenhouse gas (GHG) emissions have continued to increase dramatically since the Industrial Revolution, resulting in the world heading towards a global temperature change of +4-6oC by 2100. To avoid floods, droughts, rising sea levels and extreme weather, the private and OCTOBER 2019

69

“ For us setting science-based targets is the right thing to do, but also makes perfect business sense” — Laurel Peacock, Senior Sustainability Manager, NRG Energy

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

“ 2015 saw 195

70

governments commit to the Paris Agreement to prevent dangerous climate changes, with targets to limit increased global temperatures to below 2°C by the next century” — Mark Hunter, Mark Hunter, CEO, Molson Coors

public sectors need to work towards reducing their emissions and keep this increase below 2oC. From a business growth perspective, corporations have the potential to benefit from increased innovation via new technologies and operational practices, increased regulatory clarity to ensure it stays ahead of future policies, and ultimately strengthening their credibility.

WHO HAS COMMITTED TO THE INITIATIVE? SBT aims to be standard business practice by 2020, playing a major role in reducing GHG emissions. Those already committed to the initiative include: Molson Coors, Cambridge University, EDP (Energias de Portugal), NRG Energy and Origin Energy.

FACTS

• Greenhouse gas (GHG) emissions have continued to increase dramatically since the industrial revolution, resulting in the world heading towards a global temperature change of +4-6°C by 2100 • To date, 611 companies have committed to SBT’s call to action against climate change

OCTOBER 2019

MOLSON COORS – JOINED AUGUST 2019 Molson Coors has committed to reduce its Scope 1 (direct) and Scope 2 (indirect – purchased energy) GHG emissions by 50%, reduce carbon emissions in relation to packaging by 26% and use 100% recyclable packaging by 2025. The company has also set smaller short-term targets of removing plastic film wraps from

CLICK TO WATCH : ‘MOLSON COORS - OUR BEER PRINT 2025: RAISING THE BAR ON BEER’ 71 multi-packs by March 2020 and plastic rings by March 2021.

In order to achieve this, the com-

CAMBRIDGE UNIVERSITY – JOINED JULY 2019 By 2030, Cambridge University – the

pany is set to create a new plastic

first university to set science based

and packaging strategy focusing

targets – has committed to reduce

on lifecycle emissions and circular

its Scope 1 and Scope 2 emissions

economy principles as well as col-

by 75%, and its Scope 2 to net zero

laborating with governments, local

emissions by 2048, across the entire

authorities and industries to achieve

operational estate.

the best results.

“As a global brewer with a strong

To achieve this, it is set to carry out a feasibility study for an on-site

family heritage, we have always taken

solar farm, complete assessments to

seriously our responsibility to brew a

determine the best ways to reduce

more sustainable future,” says Molson

the amount of gas used and explore

Coors’ Chief Executive, Mark Hunter.

how to provide better data to develop w w w.e ne rgydi gi ta l. com

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

tailored solutions.

In addition, over the next three years the university will aim to develop a Scope 3 (indirect – any factors not included in Scope 2) strategy to reduce business travel, supply chain and student travel emissions.

“As a world-leading university, we need to not only take responsibility for our own carbon emissions, but also to demonstrate to others what is achievable,” says the University of Cambridge’s Director of Information Services, Ian Leslie.

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EDP (ENERGIAS DE PORTUGAL) – JOINED FEBRUARY 2017 EDP is the largest generator, distributer and supplier of electricity in

in innovative technology, specifically

Portugal, with its subsidiary – EDP

for clean energy, smart distribution

Renewables – being one of the larg-

and energy efficiency.

est wind power operators worldwide.

“The electricity sector is changing

By 2030, EDP has committed to re-

rapidly and faces a huge challenge in

ducing its Scope 1 and Scope 2 emis-

terms of decarbonisation. We believe

sions by 55%, reduce its Scope 3 by

that electrification and the accelera-

25% and reduce its CO2e by 75%.

tion of renewable deployment will

To achieve this, EDP will look to

play a crucial role in the shift to a

increase its renewable portfolio at a

low-carbon economy,” says Deputy

rate of at least 700MW per year until

Director of Climate and Environment

2020, have 90% of its customers us-

from the Corporate Sustainability Of-

ing smart meters by 2030 and invest

fice, Sara Goulartt.

OCTOBER 2019

“As a global brewer with a strong family heritage, we have always taken seriously our responsibility to brew a more sustainable future” — Mark Hunter, Mark Hunter, CEO, Molson Coors

NRG ENERGY – JOINED DECEMBER 2015

To do this, the company is looking to

NRG Energy is a large American energy

harness its wealth of quality data for

company that provides 50,000MW of

tailored insights, take advantages of its

power generation capacity. Since 2009,

naturally aging coal plants by transform-

the company has been moving away

ing them into more sustainable options,

from coal plants and investing in clean

and invest in environmental enhance-

energy, such as: wind power, photovol-

ments, repowering, new technology and

taic plants, and solar thermal energy,

energy saving tools alongside expand-

as well as repowering coal plants with

ing use of renewables.

lower carbon natural gas.

NRG Energy has committed to a 50%

“For us setting science-based targets is the right thing to do, but also makes

reduction of absolute emissions by

perfect business sense,” says Senior

2030 and 90% by 2050.

Sustainability Manager, Laurel Peacock. w w w.e ne rgydi gi ta l. com

73

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

“ SBT aims to be standard business practice by 2020, playing a major role in reducing GHG emissions” — Mark Hunter, Mark Hunter, CEO, Molson Coors

ia – to deliver climate action. By 2032, it has committed to reduce its Scope 1 and Scope 2 emissions by 50% and its Scope 3 by 25%.

To achieve this, Origin Energy plans to exit coal fired power generation by 2032, take advantage of its naturally aging plants and use sustainable alternatives, significantly grow its renewables and utilise gas as a lower emission alternative in the medium term.

ORIGIN ENERGY – JOINED MARCH 2018 74

“We firmly believe decarbonising

Origin Energy, an Australian com-

our business is not only the right

pany with a generation fleet of

thing to do by our stakeholders and

7,000MW, operates across power

the planet, it also presents opportu-

generation, energy retailing, natural

nities to create value, and Origin is

gas, exploration and production.

well positioned on this journey having

The company acknowledges its re-

prepared for a low carbon future

sponsibility and opportunity – being

for many years,” says Origin Energy

a leading energy company in Austral-

CEO, Frank Calabria.

OCTOBER 2019

COULD BIG DATA BE USED TO COMBAT CLIMATE CHANGE?

potential risks in the future.

Utilising the expansive data held by the

ments to combat climate change, such

private and public sectors that identi-

as California’s plans to launch its own

fies the amount of emissions produced,

satellite – announced by US Governor,

carbon levels in the world, key industry

Jerry Brown in September – to monitor,

areas and the effect carbon is hav-

from space, the formation of pollu-

ing on the planet – past and present –

tion that causes climate change. The

could be the answer to better under-

satellite will produce vast amounts of

standing climate change and allowing

data on the sources of climate pollut-

companies to implement tailored initia-

ants and will be shared publicly via the

tives to achieve science-based targets.

Environmental Defense Fund (EDF).

Big Data applications have the capac-

2019 has seen innovative develop-

“This ground breaking initiative will help

ity to capture, collect and process fast

governments, businesses and landown-

paced and sizeable data. Coupled with

ers pinpoint — and stop — destructive

predictive analytics, Big Data is vital for

emissions with unprecedented preci-

generating useful and real-time action-

sion, on a scale that’s never been done

able insights as well as predicting any

before,” says Brown. w w w.e ne rgydi gi ta l. com

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Sustainable cities

76

CSO magazine takes a look at the top 10 sustainable cities in the world as ranked by the Arcadis Smart City Index (SCI) 2018 WRITTEN BY

OCTOBER 2019

MARCUS LAWRENCE

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T O P 10

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10

Frankfurt [ GERMAN Y ]

In 2000, the city of Frankfurt committed to becoming the most sustainable city on Earth and, alongside stiff competition, it is certainly making good on its promise. In the almost 20 years since, Frankfurt has been crowned with a major green belt that’s home to 200,000 trees, along with cash incentives for its citizens to cut their electricity usage, the gradual installation of an electric vehicle-friendly charging infrastructure, and an extensive metering and maintenance programme to minimise water wastage.

OCTOBER 2019

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09

Hong Kong [ C HIN A ]

As one of the world’s greatest financial hubs, Hong Kong is never short of the capital necessary to augment its public services and sustainability initiatives with the latest tech and strategies. Its dense population means that air pollution is a key challenge for the city’s government, and one of its major smart city strategies is focused on implementing a host of IoT-enabled smart traffic systems to maximise the efficiency of its roads and cut vehiclerelated carbon emissions.

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PURPOSE LED, PERFORMANCE DRIVEN

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T O P 10

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08

Oslo [ NOR WAY ]

Ranking 6th for Planet, the Norwegian capital of Oslo is also a top European smart city. With the aim of improving its citizens’ quality of life alongside clamping down on its environmental impact, Oslo’s smart city initiatives are focused largely on hydrogen and electricity-powered public transport, IoT-infused waste and traffic management systems and an extensive energy-efficient retrofitting project for an array of buildings across the city.

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T O P 10

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07

Munich [ GERMANY ]

Home to one of the world’s foremost football teams, Munich has a sustainability ethos to match its sporting prowess. The city’s population is set to grow significantly by 2030, owing to a high birth rate and an influx of young professionals seeking its abundant job opportunities, and so there has been significant investment in preparing for the strain on space and resources that such growth will cause.

Considered to be Germany’s most liveable city, it also has an array of sustainability projects and goals that could go a long way to mitigating its environmental impact.

OCTOBER 2019

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06

Zurich [ S W I T Z E R L A ND ]

Replete with traditional Swiss architecture blended with a pristine corporate environment, Zurich is one of Europe’s most beautiful and modern cities. Having led the pack as the overall most sustainable city in the 2016 report, Zurich hasn’t quite kept pace with the rising surge in sustainability projects worldwide. Nonetheless, the Swiss capital remains a winning example of an effectively managed urban environment, with deep-running investment in renewable energy and extremely low rates of air pollution.

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Supply Chain Efficiency Demands a World-Class Supplier.

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Our products are made from paperboard, a recyclable material and made from renewable resources. When you choose Graphic Packaging International, you’re making a sustainable choice for the environment and your business.

Ask us about our alternative paperboard solutions to plastic shrink film and rings.

Learn more at graphicpkgeurope.com

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T O P 10

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05

Vienna [ AUSTRIA ]

At 4th place in the SCI’s Planet pillar, Arcadis says Vienna effectively balances strong environmental policy with high quality of life.

As a tourism destination, Vienna is pitched as one of Europe’s most verdant and sustainability-oriented holiday destinations, and this is corroborated by a deeply sustainable local economy based on ethics, organic produce and a robust green transport infrastructure for minimised environmental impact.

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T O P 10

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04

Singapore [ SING A P OR E ]

Singapore plays host to some of the world’s most ambitious smart city initiatives, and its connectivity was a key differentiator in being crowned the leader of the SCI’s Profit pillar. With a potent transport infrastructure, legislative ease for conducting business, and high employment and output levels, Singapore has all the components of a global finance hub with longevity. Robust city-wide management and planning has established Singapore as both a digital leader and a prime example of effective green urban planning.

OCTOBER 2019

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03

Edinburgh [ S C O T L A ND ]

Ranking 1st in the People pillar, Edinburgh is one of the UK’s most beautiful, historic and liveable cities. Sustainable Edinburgh 2020 has defined the city council’s sustainability framework for almost a decade: “Edinburgh in 2020 will be a low carbon, resource efficient city, delivering a resilient local economy and vibrant flourishing communities in a rich natural setting.” The framework has certainly positively impacted people’s lives in the city, with the SCI noting that Edinburgh possesses a “highly educated and healthy” workforce with a respectable distribution of wealth and a very low crime rate.

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T O P 10

02

Stockholm [ S W E DE N ]

Stockholm’s status as an ecological powerhouse is reflected in its 1st place position in the SCI’s Planet pillar. Named as the first European Green Capital by the EU Commission in 2010, Stockholm’s sustainability projects have not lost momentum in the years since.

A current major and ambitious project is Hammarby Sjöstad 2.0, known as the city’s signature sustainability initiative, which showcases the levels of renewable energy, waste management, circular economies, and sustainable transport infrastructure that can be achieved in an inner-city district.

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OCTOBER 2019

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T O P 10

01 90

London [ UNI T E D K ING DOM ]

“ T HE UK’S CAPITAL IS KNOWN FOR OFFERING THE WIDEST AND DEEPEST RANGE OF JOB PROSPECTS IN THE COUNTRY, ALONG WITH INCREASED AVERAGE SALARIES OVER THE REST OF ITS MAJOR CITIES” Coming in 2nd in both the People and Profit pillars, and 11th in Planet, London represents a small few cities to perform consistently at the top end of each pillar. The UK’s capital is known for offering the widest and deepest range of job prospects in the country, along with increased average salaries over the rest of its major cities.

Given that London stands as one of the most pivotal financial hubs in the world, it is only natural that significant investments have been made in sustainable infrastructure, ease of transport, and international connections.

OCTOBER 2019

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

Your rundown of the biggest upcoming sustainability events around the globe EDITED BY MARCUS LAWRENCE

17–20 OCTOBER

IEEVChina 2019 16–17 OCTOBER

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[ BEIJING, CHINA ]

Ethical Corporation’s Sustainability Reporting and Communications Summit 2019

IEEVChina, or the International New

[ AMSTERDAM, NETHERLANDS ]

will include exhibitors covering topics

Join over 300 global CEOs, investors

such as intelligent transportation, inter-

and heads of business for this two-day

net and communications, AI and new

event to learn how businesses can pro-

energy. The event will operate across

mote greater transparency and shape

five indoor exhibition halls, 10 feature

the future of sustainability reporting

exhibition areas and one outdoor test

and communications. Speakers at this

driving experience area. Concurrent

year’s event include Frances Way, Chief

forums will also take place across

Strategy Office at CDP, Rasmus Skov,

China. This year’s event is hosted by

Head of Group Sustainability at Orsted,

the China Council for the Promotion

as well as Fiona Wild, Vice President,

of International Trade Machinery Sub-

Climate Change and Sustainability at

Council, the China Electrotechnical

BHP Billiton.

Society, Autoknow Magazine, Global

Energy and Intelligent Connected Vehicles Exhibition, dubs itself as the “largest professional event in Asia”. It

Auto Group and China Automotive Engineering Research Institute Co Ltd.

OCTOBER 2019

22–23 OCTOBER

Bloomberg Sustainable Business Summit [ BLOOMBERG, NY, USA ] The Bloomberg Sustainable Business Summits are leading events hosted around the world for business and thought leaders to come together to drive enhanced sustainability in business and finance. At these events, Bloomberg offers opportunities to accrue insights on, among others: best practices for sustainable revenue growth, establishing internal definitions and goals for sustainability and how investors can

24 OCTOBER

World Sustainability Congress 2019 [ GANDARIA CITY, INDONESIA ]

assess the relative sustainability of vari-

Hosted by World Sustainability – a non-

ous opportunities. Scheduled speakers

profit dubbed as a ‘for-purpose

for the New York event include: Lee Bal-

organisation’ and focused on advocat-

lin, Head of Sustainable Business

ing sustainable leadership – the event

Programs at Bloomberg; Jostein Sol-

brings together corporate organisa-

heim, Executive Vice President of Foods

tions, NGOs, public interest groups and

and Refreshment at Unilever America;

government bodies to share and dis-

Rose Stuckey Kirk, Chief Corporate

cuss cutting-edge practices for

Social Responsibility Officer at Verizon;

sustainable business. Registration is

and many more. Sister events are due to

currently open for speakers.

be held on 19 September in Toronto and 12 December in Hong Kong.

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

19–21 NOVEMBER

POWERGEN International exhibition & summit [ NEW ORLEANS, LA, USA ] With over 14,000 people attending last years’ event, POWERGEN International is a must-see summit for generators,

94

12–14 NOVEMBER

utilities and solution-providers

BSR Conference 2019

engaged in power generation.

[ SAN JOSE, CA, USA ]

“The exhibit hall provides an interactive

This year marks the 27th annual BSR

experience personalised to connect

conference, one of the most prestigious

attendees with the latest technology

sustainability events in the business

and innovations in the conventional

calendar. The theme for this year’s event

and renewable markets from around

is ‘The New Climate for Business’. BSR

the world,” reads the event’s website.

speakers will include global leaders

“The summit and knowledge hubs

spanning business, sustainability and

deliver transformative content includ-

civil society. Last year’s event, saw

ing disruption from conventional and

speakers including Kate Brandt, Google

emerging, clean and sustained energy

Sustainability Officer at Google and

sources, niche technologies and the

Marie-Claire Daveu, Chief Sustainabil-

fluctuation of economics and policy.”

ity Officer and Head of International Institutional Affairs at Kering.

OCTOBER 2019

4–5 FEBRUARY

edie Sustainability Leaders Forum 2020 [ LONDON, UK ] The edie Sustainability Leaders Forum is set to host over 300 sustainability leaders from CEOs and sustainability directors to policymakers and NGOs. The forum includes global names like

95

13-14 MAY

more. The event is organised by edie, a

All- Energy Exhibition Conference 2020

sustainable business media organisa-

[ GLASGOW, UK ]

tion which provides research and

Glasgow’s All-Energy Exhibition and

reports for sustainability professionals.

Conference strives to enable the UK

It also organises industry awards which

renewable low carbon energy commu-

recognises those who are “redefining

nity “to interact, conduct business,

what it means to be a sustainable, ethi-

network and learn, whether face-to-

cal and responsible business”. The

face or online”, according to the

awards include categories such as con-

organisers. Held annually in Scotland,

sultancy of the year, carbon reduction,

the event brings together a total audi-

energy efficiency, rising sustainability

ence of around 7,000 and promises to

star and sustainable supply chains.

be a must-attend conference for any

Unilever, Coca Cola, P&G, NG, AXA and

energy professional.

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HOW SIMEC ENERGY AUSTRALIA IS MAKING UTILITY SCALE RENEWABLE ENERGY A VIABLE CHOICE FOR AUSTRALIAN BUSINESSES WRITTEN BY

HARRY MENEAR PRODUCED BY

RYAN HALL

OCTOBER 2019

97

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SIMEC ENERGY AUSTRALIA

Marc Barrington, CEO of SIMEC Energy Australia, shares his insight into the changing face of the nation’s energy sector, the rising tide of customer centricity and the firm’s new battery and solar farm projects

I

n Australia, the energy industry is rapidly turning towards greener, more sustainable energy supply solutions, particularly

with regard to one of the country’s most abundant resources: the sun. As of March 2019, more than 2mn solar photovoltaic (PV) installations with 98

a combined capacity in excess of 12GW, were operational across the country. This is all as a result of a changing world. Climate change, potentially the greatest existential threat humanity has faced, is emerging as the defining crisis of our time.

The world needs to change or face radical consequences. “All facets of society are aware of climate change, with the majority accepting that humankind has played its part in bringing about global warming. The energy sector globally remains a large emitter of greenhouse gasses and everyone from investors to consumers of energy are aware of this. At the same time, energy prices have continued to rise, to a large extent driven by the ageing nature of Australia’s in-situ thermal generation plants,” explains Marc Barrington, CEO of SIMEC Energy Australia.

OCTOBER 2019

99

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SIMEC ENERGY AUSTRALIA

“ One thing that always surprises me in business is, no matter how small a company is, silos always seem to exist” — Marc Barrington, CEO, Simec Energy Australia

“Operating a sustainable energy company like SIMEC Energy Australia means we can present solutions to many of these issues by enabling the transition from older – and sometimes less reliable – fossil fuel technologies to clean renewable generation, constructing renewable energy portfolios that deliver lower costs for consumers and finally delivering an environmental outcome for society.” Since 2004, SIMEC Energy Australia (originally ZEN Energy) operated out of Tonsley in South Australia, providing solar PV

100

and storage offerings to residential and commercial customers across the region. Post-Sanjeev Gupta’s majority stake in the business in late 2017, SIMEC Energy expanded into commercial and industrial energy supply nationally with offices in South

OCTOBER 2019

CLICK TO WATCH : ‘GFG ALLIANCE - CULTANA SOLAR FARM PROJECT’ 101 Australia, Melbourne and Sydney.

to better respond to the challenges

Barrington has served as CEO since

of a changing landscape. “One thing

July 2018 and brings the better part

that always surprises me in business

of two decades’ experience in the

is, no matter how small a company is,

energy sector to the role. Barrington

silos always seem to exist,” he notes.

shares his insight into the changing

“In the past twelve months, we have

face of the nation’s energy sector,

been able to build a more collaborative

the rising tide of customer centricity

and inclusive culture internally,

and the firm’s new battery and solar

which I believe has delivered – and

farm projects.

will continue to deliver – real results

As the leader of an agile, challengerscale renewable energy provider and

for the business, our people and most importantly our customers.”

retailer, Barrington has spent the last year working to improve SIMEC

A NEW DIRECTION FOR THE MARKET

Energy’s ’s internal operations in order

The company’s customers, Barrington w w w.e ne rgydi gi ta l. com

Data at the heart Analytics Pathway

Data Science

Decision Intelligence @ Scale

“Ignite’s professional, open, pragmatic and business centred approach has been invaluable to Ballance as we establish and embed our Data Science capability.”

Chief Digital Officer, Ballance NZ

Contact Us

The Ignite way: making data the hero Data is at the heart of everything, so why is it so hard to articulate its value? Why do digital transformations focus on collecting more of it, rather than using it more? And why do we try to categorise data into marketing driven terms such as big data, machine learning, deep learning and artificial intelligence rather than focus on the potential they can unlock?

Data is indeed at the heart of everything, but its value lies in how it is used. Like past technology evolutions, investing in great technology tools is necessary but not sufficient. Rather it is about embracing a culture that focuses on the intrinsic value of data to improve the organisations and society around us. That’s a feat few are achieving.

Last year, MIT CISR surveyed 315 executives to understand how companies generated economic returns from data activities.

• 60% rated their company as average, or below, at using data to create operational efficiencies.

• 62% believed their firm was average, below average or unable to integrate analytics into products and experiences.

• 40% said they weren’t even looking at, let alone capable of, generating revenues from selling information solutions.

Many organisations are clearly still struggling to unlock value from their data, and it’s this challenge that motivates us at Ignite. Lessons we have learnt have taught us to take a pragmatic, business-centred approach to data.

We want to make data the hero and put it at the core of solving problems. The focus is on finding repeatable value and then unlocking it perpetually by implementing decision intelligence at scale.

That’s how we have built our relationship with SIMEC Energy Australia. For utilities, the issue isn’t convincing anyone of data’s value, it’s proving how to extract it.

Leveraging Databricks for machine learning on a Microsoft Azure platform has given SIMEC a powerful solution.

As the organisation has grown, we’ve invested together to augment this capability. Though AEMO and market

changes mean many utilities have had to rethink and reinvest in their data platforms, SIMEC are well positioned for the future; poised for data from the Playford Battery, able to adapt to the changing data landscape 5-minute settlements will bring, and able to provide customers the ability to interpret their own data using SIMEC provisioned insights. Using data to improve the communities we live in is at the heart of the partnership investments we make with SIMEC.

“In partnership with Ignite, we have successfully implemented a number of data-intensive and complex initiatives that have had a very positive impact on SIMEC’s growth.”

GM Retail Operations, SIMEC Energy Australia

The Ignite way is simple: understand and communicate data science in terms of business application and value.

To determine the size of the prize, we work with your experts to discover how data can streamline day-to-day decisions, improve products and experiences or create revenue streams. This focused collaboration allows us to generate excitement around data and data science techniques early.

The analytics pathway assesses the feasibility and impact, creating a genuine path to embedding the outcome. It also gives sponsors confidence that time and money are not being wasted “just experimenting” whilst allowing for the exploratory nature of data science.

Our relationships reflect our commitment to improve data literacy across the community. As industry mentors with Monash University we help nurture the analysts of tomorrow. By partnering with us, clients know we’ll be doing everything we can to upskill their own talent.

For us, a future with amazing analytics platforms, operated and developed by even more amazing people, is one worth pursuing.

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

SIMEC ENERGY AUSTRALIA

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C O M PA N Y FA C T S

SIMEC’s Majority Investor: The GFG Alliance • SIMEC Energy Australia is a part of the GFG Alliance, and has built an energy offering for GFG and their steel manufacturing interests that enables them to access real value.

• GFG Alliance is an international grouping of businesses, founded by the British Gupta Family.

OCTOBER 2019

The Alliance’s integrated business model encompasses mining, energy generation, metals and engineering, underpinned by industryfriendly financial services, a substantial property portfolio.

• Sanjeev Gupta serves as SIMEC Energy Australia’s chairman.

“ Our customers are better informed as to the way in which they use energy now, than they ever have been historically” — Marc Barrington, CEO, Simec Energy Australia

Marc Barrington

explains, are set to be a major driving force in the energy sector over the next decade. “Our customers are better informed as to the way in which they use energy now than they ever have been historically,” he says, chalking up increased customer savviness to rising energy costs. Barrington’s experience in the space means he sees this trend as one among many that constantly buffet and buoy the industry. “Whether

E XE CU T I VE PRO FI LE E XE CU T I VE PRO FI LE

105

Marc joined SIMEC Energy Australia as CEO in July 2018, working with a strong team of executives aiming to deliver compelling solutions for commercial and industrial consumers of energy, including the requirements of the Liberty/GFG Group. He is an experienced executive with significant exposure to Australia’s energy markets. Prior to joining SIMEC Energy, Marc was Head of Sales, Asia Pacific at wind turbine OEM, Senvion, prior to this, he held senior positions at AGL Energy including General Manager Energy Services, Head of Eco-Markets and Senior Energy Trader. Marc commenced his career at NM Rothschild and Sons trading precious metals, working in both Sydney and London and then moved to a Geneva headquartered trading house, focusing on metals, foreign exchange and associated derivatives. Marc has undertaken Senior Leadership studies with Melbourne Business School and is a Graduate of the Australian Institute of Company Directors.

He has held numerous Board and committee roles including NonExecutive board member for the Australian Alliance to Save Energy as well as participating in many community-based volunteer programs such as the I-Track Mentor with The Smith Family. w w w.e ne rgydi gi ta l. com

SIMEC ENERGY AUSTRALIA

it’s changing market structures, such as we have witnessed with the disaggregation of the market and the advent of vertical integration; the change in technology and operational efficiencies; the regulatory landscape or even the changing needs of customers and the rise of the ‘prosumer’ – the energy sector has seen it all.”

Certain that SIMEC Energy’s utilityscale renewable offerings are the future of the country’s energy market, Barrington’s generation supply 106

priorities for the company are currently centered around two major projects: the Playford Utility Battery and the Cultana Solar Farm. “Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation. When delivered well and structured into an innovative retail energy portfolio, these assets can deliver real savings for customers – particularly when integrated into an active demand-side response programme.

Having access to in-house built renewable generation, coupled with the means to firm it, is the foundation of our strategy for our Company,” he explains.

OCTOBER 2019

On the retail front, Barrington made clear that he is keenly focused on delivering globally competitive energy to customers and securing ‘win-win’ outcomes through innovative solutions like demand management. “Our customers need energy solutions that allow them to compete both domestically and internationally. I think that we have the operational capability to meet this need,” he said.

PLAYFORD UTILITY BATTERY A utility-scale battery development that will support SIMEC Energy’s renewable energy portfolio and provide services to the national electricity grid, the Playford project will provide direct and indirect employment opportunities in Port Augusta and surrounding areas, as well as assisting in the transformation of the Whyalla Steelworks by enabling the supply of cheaper and cleaner energy. “We have undertaken substantial amounts of work to ensure the use cases for the battery, which will be a world first, deliver value to our portfolio and more importantly to our customers in South Australia,” says Barrington. w w w.e ne rgydi gi ta l. com

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SIMEC ENERGY AUSTRALIA

108

OCTOBER 2019

109

AUS$250mn Approximate revenue

2015

Year founded

50

Approximate number of employees

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SIMEC ENERGY AUSTRALIA

110

OCTOBER 2019

The project, he enthuses, is an industry-leading example of Australian ingenuity harnessing the latest technologies with marke-specific use cases, in order to create long-term value.

“The Playford Utility Battery algorithm that we have developed with experts in this field – all of whom are Australian I am proud to say – utilises artificial intelligence (AI), machine learning (ML), big data analytics and Internet of Things (IoT) technology,” he explains.

“Should we be able to take this project to financial close, we will demonstrate for the first time the power of battery storage in managing the variability f renewable generation and deliver long term price improvements for end-use customers in the region.”

CULTANA SOLAR FARM With construction scheduled to begin imminently on land just north of the Whyalla Steelworks, the Cultana Solar Farm is a 280MW capacity solar PV facility that will contribute to the national electricity grid via the existing Cultana substation. The project is a key component – coupled with its retail objectives – of the firm’s desire to reshape the w w w.e ne rgydi gi ta l. com

111

SIMEC ENERGY AUSTRALIA

Australian energy market by providing utility scale renewable energy at rates that are competitive to current thermal alternatives, and therefore a critical priority. “Given that we are in the final stages of taking Cultana Solar Farm to financial close, I am focusing heavily on planning for the safe delivery of the project with our staff and partners,” confirms Barrington. “We have developed the farm in consultation with the local community and expect that construction will commence before 112

the end of the year.”

Looking to the future, Barrington is confident that both SIMEC Energy Australia and the market as a whole are on the right side of history.

At any time, I ensure my team can

“ Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation” — Marc Barrington, CEO, Simec Energy Australia

OCTOBER 2019

devote efforts to looking at a point just beyond the horizon, whether it’s products, systems or trading strategies. I use this approach, as it delivers an anticipatory culture that makes for a very exciting working environment,” he enthuses. In addition to completing its major projects, SIMEC Energy is working on reinvigorating its presence in the commercial and residential solar

113

PV and battery storage market,

to see industry in our country grow

as well as expanding its energy

sustainably, what a great challenge

product portfolio. Sustainability,

to have,” he concludes.

of course, will remain at the heart of everything that the company does.

Reshaping the country’s energy industry is, Barrington admits, an ambitious goal. “It’s not without challenges, but as a father, a husband, an employer and someone who wants w w w.e ne rgydi gi ta l. com

Your Safety...Our Commitment

114

OCTOBER 2019

115

WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

ANDY TURNER

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H E AT H C O N S U LTA N T S

As the company focuses on digitally transforming its operations,Heath Consultants prioritizes sustainability across its functions

E

stablished 86 years ago, Heath Consultants is now run by the third generation of the Heath family. The business is the premier

leader in the natural gas leak detection industry, servicing utility companies “all the way from the 116

well head to the burner tip”, explains Paul Wehnert, Senior Vice President of the Sales and Marketing unit. “Primarily, we’re a leak detection, underground utility locating service, and products manufacturing firm,” adds Wehnert.

The company employs around 1,500 people across 44 states in the US, but has earned an international presence through the distribution of its products. A main aspect of the company’s operations is conducting leak surveys. “A leak survey primarily consists of a person walking around documenting on paper where they went and what they found. However, the industry is currently going through a transition from paper documentation to digital documentation,” remarks Jeff Tuttle, CEO of Heath Consultants. “The way in which we conduct these surveys is now all in OCTOBER 2019

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H E AT H C O N S U LTA N T S

“ The industry is currently going through a transition from paper documentation to digital documentation” — Jeff Tuttle, CEO, Heath Consultants

transition – whether the person is walking or driving by vehicle, the instrument readings, position of the person and detections are all recorded.” Heath is also expanding its technological footprint with the launch of its DP-IR Trainer, software that uses augmented reality to train workers how to conduct leak surveys.

Beyond how the information is acquired and stored, the company is also expanding its analytics capabilities through a partnership with software development company Silicus. Heath is now able to evaluate

118

OCTOBER 2019

CLICK TO WATCH : ‘HEATH 2018 WORLD GAS CONFERENCE PRODUCT SHOWCASE’ 119 the leak information, such as methane

technology that is connected to the

readings and pipe quality. “We can ask:

internet, such as data logging, GPS

‘Where are the risky sections of pipe?

and the cloud. “We still have portable

Where are they located?’ We can then

platforms, but connected portable

provide a thesis or data source to that,”

platforms. We have mobile platforms

continues Tuttle.

where we have vehicles that drive

The company has leveraged its core

around a city network, and we have

gas detection technology and con-

aerial platforms like drones and UAVs,”

nected it with a cloud analytics

says Tuttle. The CEO highlights the

package. This enables oil producers to

introduction of connected methane

then conduct Leak Detection and

sensors placed amongst city grids,

Repair (LDAR) work, which often takes

available on a 24/7 basis.

places in remote areas. The industry is

However, the role of analytics has

shifting from using portable technolo-

a much greater presence in the

gies that an individual would carry to

company’s overall business strategy. w w w.e ne rgydi gi ta l. com

Enabling Enterprises in the Cloud Silicus is a cloud transformation services company, focused on helping enterprises deploy sustainable cloud technologies- to support business innovation, enable technology modernization, scale technology-driven differentiation, and manage technology investments through their lifecycle.

LEARN MORE

CONTACT US

“ It’s also important from a digital transformation perspective to collect data on the performance of our technicians” — Ken Cowher, Vice President of Operations for the Service unit, Heath Consultants

“For us on the operations side, it’s also important from a digital transformation perspective to collect data on the performance of our technicians,” notes Ken Cowher, Vice President of Operations for Heath’s Service unit.

“It is important we have a standardized and automated way of doing that to ensure we get good quality data we can run predictive analytics on. This allows us to proactively manage our crews and make them as efficient as possible.”

Cowher explains that all service operations lie within a competitive bid industry, which in turn means that efficiency is key.

E XE CU T I VE PRO FI LE

Jeffrey Tuttle, CEO Jeffrey Tuttle has worked in various capacities within the utilities sector for over 30 years. Prior to joining Heath he served as General Manager for Greer Commission of Public Works where he directed the company’s day-to-day operations and long-term direction of all utility operations.

He has served on various association’s Board of Directors including Piedmont Municipal Power Agency (PMPA), American Public Gas Association (APGA), Blue Ridge Scouting Council, and Greer Relief.

From 2011 to 2012, he served as the Chairman of American Public Gas Association (APGA) and Texas Gas Association.

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H E AT H C O N S U LTA N T S

122

OCTOBER 2019

The company uses Microsoft’s Azure cloud to host many of its systems, including RMLD-Remote Emissions Monitoring. Heath is piloting the sensor-based technology that enables it to monitor for leaks 24/7. The firm is almost ready to introduce its Leak Survey Analytic, also based in Azure, which harbors the data from thousands of surveys. “Every detail over time is captured and made available at a click so we can analyze the quality of the survey, the completeness of the survey and provide some of the risk factors that feed into some of these pipeline risk models,” Tuttle comments.

Heath has also partnered with Novara Geosolutions, the asset management products and services company.

“We’re working with them to develop a field application for our leak survey technicians to use. It will integrate with customer facility mapping and track breadcrumb indications of the leak surveyor and the path that they take over the pipeline. It will include indications that we find, abnormal operating conditions – anything that would be a reportable situation from the survey – and feed that information back to the customer whilst connecting with our w w w.e ne rgydi gi ta l. com

123

Insgroup is one of the nation’s leading independent strategic risk and insurance advisory firms. Over 40 years we’ve established a reputation for relentless client advocacy, integrity and exeptional exceptional service.

Commercial Insurance

Employee Benefits

Private Client Insurance

J. Mace Meeks 5151 San Filipe, 24th Floor Houston TX 77056 www.insgroup.net 713-350-6339

billing system,” explains Tuttle.

1933

As well as addressing technology transformation within its operations,

Year founded

Heath Consultants is also becoming very aware of sustainability issues in its industry. “The industry is really going through a major transition with emission reduction – it grew up doing the surveys from a safety standpoint, assessing the potential hazards of gas

1,500

Approximate number of employees

leaks in homes and buildings. Heath grew up with the paramount mission to find the dangerous leaks, help utilities and mitigate them by repairing the pipe.

HQ

Houston, Texas

Now with the concerns over climate

125

E XE CU T I VE PRO FI LE

Ken Cowher, Vice President, Operations Ken Cowher joined Heath in 1992 as a Field Technician with a degree in Earth Sciences from Clarion University of Pennsylvania. Ken managed the Northeast Division for Heath for nearly twenty years and created a successful corporate culture that other regions in the company strive to imitate. After promotion in 2017 to Vice President of Process Improvement and Service Business Unit Support, Ken’s clear understanding of Heath’s values, corporate mission and excellent leadership skills made him the clear choice for another promotion to his current position.

Ken is responsible for all aspects of our field service division including safety, training & development,

quality assurance and field operations.

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H E AT H C O N S U LTA N T S

126

“ The industry is really going through a major transition with emission reduction” — Jeff Tuttle, CEO, Heath Consultants OCTOBER 2019

change, methane is one of the gasses that is of most concern – this gas can leak from any point along the chain.

We’re trying to reduce that,” says Tuttle.

Working from the well pad up, the company goes through various processes in moving and producing the gas which emits the most greenhouse gases. “The well head, the well and the tank battery which the oil is stored in are all prone to emitting the

127

gasses that come along with the oil.

exploring a lot of that with vehicles and

There’s quite a bit of focus, activity and

UAVs, with autonomy providing safety

research on gas detection and we are

inspections of these safety grids within

participating in that emerging technol-

these smart cities,” says Paul.

ogy,” Tuttle says.

With Heath focusing on its digital transformation journey, the firm sees itself at the centre of a digital future.

“Our company’s operations will us more

Your Safety...Our Commitment

fix sensor technologies and more autonomous type activities. We’ll be w w w.e ne rgydi gi ta l. com

128

Implementing technology in the energy sector WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

OCTOBER 2019

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FLOGAS

Tim Eaton, Head of Logistics and Supply Chain, discusses the importance of procurement and the influence technology has had on operations

A

s a leading energy provider in the UK, Flogas boasts an extensive and diverse range of products and services such as

liquefied petroleum gas (LPG) supply for homes, businesses and vehicles as well as liquefied natural gas (LNG). Considered a market leader in propane enrichment for biomethane, Flogas provides its 130

customers with solutions for an array of situations from heating and cooking to fueling manufacturing processes. For Tim Eaton, Head of Logistics and Supply Chain, what really differentiates Flogas from rivals is its ability to consistently add value to the services it offers. “We pride ourselves on not compromising when it comes to our service across the company,” says Eaton. “It’s important that you add value to our services; whether that be by how we interact with customers, how swiftly we respond to customer demand or how resilient that service level is. Everything that we focus on is making sure that our service level is reliable, resilient, and constantly responding to our customer base.”

Since initially speaking to us a year ago, Flogas has begun to fully embrace digitisation in the LPG market. Eaton discusses the hurdles his firm has OCTOBER 2019

131

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FLOGAS

“ I think it’s always important to be aware of what could potentially come around the corner” — Tim Eaton, Head of Logistics and Supply Chain, Flogas

overcome during the past 12 months.

“A year ago, we were looking at a new end-to-end system that was going to replace a number of legacy systems to enable the business to offer a more retail service,” explains Eaton. “We’ve gone down a different route of trying to get the most out of every existing performance area that we can. We’ve begun to tighten up processes, retrain people and reposition them within different focus areas. We’ve looked at the individual systems, taken our own computing systems and looked at everything that it can do for us. Our

132

priority is doing more with the data we have and we’ve redesigned the backend database around what data comes into the business.”

With technology having an ever-increasing impact on all companies’ digital transformation journeys, Eaton points to the importance of leveraging Flogas’ extensive data correctly.

“We have a lot of data and possess vast amounts of information about our exact demand portfolio. We have access to lots of information that can really shape not just how we satisfy demand but also how we’re able to target new business. We’re at a point OCTOBER 2019

CLICK TO WATCH : ‘FLOGAS LNG VIDEO’ 133 now that a customer order can be

exported those orders to a scheduling

raised automatically by us based

system. We printed those routes out

on their consumption profile to enable

manually for drivers to deliver and then

the customer to be kept within product.

we entered in what had and hadn’t

That process is now almost completely

delivered which allowed us to invoice

digital from the order generation

people through the ERP,” he explains.

through to invoice.”

“Now, we have an order capture that

Having joined Flogas in January

is largely automated which allows us

2016, Eaton has helped oversee and

to manage the orders on behalf of our

shape his company’s ongoing technol-

customers within our ERP. They go

ogy transformation. “When I first joined

straight into our scheduling package

the company, I inherited a number of

and then are exported onto an on-truck

discrete systems that all did their own

computing system. When we deliver

jobs. We had an ERP system in place

the gas, it’s sent straight through with

that captured orders and then we

an electronic proof of delivery with an w w w.e ne rgydi gi ta l. com

FLOGAS

134

invoice to our customer. If it isn’t

ing the supply chain to ensure his

delivered, it tells the customer that

company’s suppliers are managed

we’ve unfortunately been unable to

correctly. “Procurement has always

deliver that, and sends it straight back

been a vital part of the business,” he

into the pot for rescheduling. If you go

affirms. “We have operations spread

back three years, you could be looking

around the country that control the

at a relatively long period of time from

flow of over 300,000 tonnes of

scheduling the delivery to knowing

product every year. There is a long

whether it’s been delivered. Now, it’s

list of suppliers that make sure that

almost instantaneous.”

the supply chain continues to flow.

Operating with procurement firmly

We’re continuously monitoring

at the forefront of Flogas’ decision-

how we manage our suppliers and

making process, Eaton understands

we conduct a regular review of our

the importance of continually oversee-

top 20 led by our central procurement

OCTOBER 2019

team. What we don’t want is people

we get the benefit of their expertise in

that will sell us a product and walk

a number of marketplaces. We need

away. We want people that are going

someone that understands a partner-

to be offering ways to improve our

ship is a two-way street and really

business, and open for us asking them

listens to what we want.” With this in

to improve how they work with our

mind, Flogas has formed alliances with

business. That’s absolutely critical

Lytx and AIUT in a bid to drive mutual

to how we achieve success with any

success. “Lytx helps with data

of our strategic suppliers.”

management and provides a camera

Eaton affirms the importance of

solution to our vehicles. The solution

forming and maintaining a successful

manages the success of our delivery

partnership. “What I’m looking for in any

operation and is activated through

major partners that we have is some-

harsh braking or acceleration to trigger

one to invest in their product indepen-

a camera image of what the driver was

dently. From being partners with them,

doing, and what was going on in the

E XE CU T I VE PRO FI LE

Tim Eaton, Head of Logistics and Supply Chain Tim Eaton is the Head of Logistics for one of Britain’s leading off-grid energy providers. Tim has worked in a number of senior transport and logistics roles across the Retail, Construction and Utilities industries in both operational and change management roles.

He is skilled in Operations Management, People Leadership, Transportation Management, Continuous Improvement, and Contract Management. He is Strong operations professional with a Bachelor of Science (BSc) focused in Business Management from Bradford University School of Management.

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135

FLOGAS

£ 300mn+ Approximate revenue

1984

Year founded

950

Approximate number of employees 136

OCTOBER 2019

137

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FLOGAS

“ Procurement has always been a vital part of the business” — Tim Eaton, Head of Logistics and Supply Chain, Flogas

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139 road. This can help avoid accidents,”

an eagerness to consistently move

says Eaton. “We have also worked with

with the latest trends and avoid

our telematics system provider, AIUT,

standing still. “I think it’s always

for a number of years now. They’re very

important to be aware of what could

important because they provide us with

potentially come around the corner,”

all the Big Data, in terms of consumption data on how much customers are using and when. With AIUT’s help, we match that to what the customer uses the gas for and we’re leveraging that data to obtain a more accurate demand forecast.”

By operating with a proactive approach that continues to adapt and change despite the attainment of success, Flogas has demonstrated w w w.e ne rgydi gi ta l. com

FLOGAS

“ Ask yourself, what might disrupt the business?

I believe that if you’re not looking to continuously improve what you do, somebody else will come in and do it 140 instead” — Tim Eaton, Head of Logistics and Supply Chain, Flogas says Eaton. “Ask yourself, what might disrupt the business? I believe that if you’re not looking to continuously improve what you do, someone else will come in and do it better.” However, Eaton affirms the biggest challenge is convincing employees to embrace change. “Everything can change tomorrow, but as long as we’ve always got the long-term future in mind, people will understand that change OCTOBER 2019

is necessary. If we continue to do what we’re currently doing two years from now, we won’t be in the position we’re currently in.”

With the future in mind, Eaton has clear ambitions for how his firm can remain sustainable and successful over the next few years. “We’ve invested around $4.4mn on new vehicles over the last three years to modernise our fleet which enables our footprint to become friendlier environmentally. We’ve also just invested in some natural gas-powered vehicles that will be running on bio energy,” says Eaton. “In two years’ time, we need to have completed the transformation and have a very robust analytic system that is evaluating data in terms of customer demand and is telling us what to do in advance.”

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