Energy Digital magazine - April 2018

> HOW INTEL IS DRIVING THE AUTONOMOUS REVOLUTION

A p r il 2018

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TOP 10 LARGEST exporters of liquefied natural gas THE BEAUTY OF BLOCKCHAIN

THE NEW POWER GENERATION Interview with Jodie Van Horn, Director of Ready for 100

The burgeoning technology promises to change the energy game

TURNING INNOVATIONS EXCLUSIVE VIDEO INTERVIEW

INTO SOLUTIONS ENERGY DIGITAL SPEAKS TO KEY MEMBERS OF ABB’S POWER GENERATION AND WATER TEAM ABOUT ITS NEW COLLABORATIVE OPERATIONS CENTRE

FOREWORD HELLO AND WELCOME to the April edition of Energy Digital magazine.

With an innovative history stretching back to 1883, ABB has had a ripple effect throughout all industries. Now, the Swiss multinational is introducing an inventive solution to the utility sector.

We speak to Kevin Kosisko, BU Managing Director for ABB’s Power Generation & Water unit, to see how its new Collaborative Operations Centre is helping to deliver real-time solutions for its customers using cutting-edge technology.

Tapping into more groundbreaking technology trends, we speak to BTL’s CIO, Hugh Halford-Thompson, to see how its bringing blockchain to the forefront of the energy industry.

Elsewhere, Intel’s CEO Brian Krzanich comments on how the tech giant’s innovations are driving the autonomous revolution and how trust is the key to success.

One of the largest and most influential environmental agencies in the US, Sierra Club, is leading the way with its pioneering ‘Ready for 100’ campaign. We speak with Jodie Van Horn, Director of Ready for 100, to find out more.

Next, with a growing global demand for cleaner alternative energy sources, liquefied natural gas (LNG) has found itself highly sought after across the planet. We scour the globe to find the top 10 biggest exporters of the resource.

Finally, this edition rounds off with a look at the top industry events across the globe.

We sincerely hope you enjoy the issue, and as always, please tweet your feedback to @energydigital

Enjoy the issue!

www.energydigital.com www.bizclikmedia.com

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Turning innovations into solutions SMART CITIES

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THE NEW POWER GENERATION

T R A N S P O R TAT I O N

Trust – how Intel is driving the autonomous revolution

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TOP 10 LARGEST EXPORTERS OF LIQUEFIED NATURAL GAS

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108 Olympus MEA Middle East

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Turning innovations into solutions Energy Digital sat down with Kevin Kosisko, BU Managing Director for ABB’s Power Generation & Water unit, at the opening of its new Collaborative Operations Centre in Italy, where it promises to deliver real-time solutions for its customers using cutting-edge technology Written by BEN MOUNCER

ENERGY 4.0

EXCLUSIVE VIDEO Kevin Kosisko and Susan Peterson-Sturm on ABB’s Collaborative Operations technology

ENERGY 4.0 FEW DISRUPTORS COULD boast a record of sustained success to match that of ABB. Established on the innovation frontline over a storied history stretching back to 1883, the Swiss multinational has helped technologically transform thousands of companies, its impact rippling through all industries.

Now it is introducing more inventive solutions to the utilities sector, recently launching a new Collaborative Operations Centre – a hub for delivering digital services to customers – for its BU Power Generation & Water unit in Genoa, Italy.

The unit, which operates as part of ABB’s Industrial Automation division, works in over 70 countries globally and pulls in close to $1bn in annual revenues. Kevin Kosisko, Managing Director of BU Power Generation & Water, addressed partners and media at the opening of the centre in February.

“This is an exciting time for us,” he explained to Energy Digital. “As we embark on this journey of helping our customers operate, maintain and upgrade their processes, I think that opening this centre in 14

April 2018

ABB has 70mn digitallyenabled devices, the world’s largest installed base

Genoa is a critical piece of that.

“The Collaborative Operations Centre allows us to better work together with our customers in a more collaborative way, to use digital technology, big data, analysis of big data and so forth to drive solutions.

The beauty of the centre is that we are actively doing this every day.

“We have over 100 customers that are connected to this centre already and we’re able to bring our expertise together with our customers’ expertise and really drive solutions for them, helping them solve some of the more challenging issues that they have.”

The Genoa centre is the third of its kind for ABB’s Power Generation

Kevin Kosisko BU Managing Director

Kevin Kosisko was appointed Managing Director of BU Power Generation & Water within the Process Automation division – now Industrial Automation division – in January 2016.

Prior to this role, he was the regional division head for Process Automation in the Americas and was previously vice-president and regional manager for ABB Service in North America.

Kosisko joined the Bailey Controls Company in 1989, and then ABB in 1999 as part of the Elsag Bailey Process Automation acquisition.

He holds a BS degree in electrical engineering from the University of Akron, Ohio. Kosisko is based in Houston, Texas.

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ENERGY 4.0

ABB Ability Collaborative Operation Centre, Genoa, Italy

& Water unit, with other locations in Germany and Singapore. Powered by Internet of Things (IoT) innovations, Collaborative Operations is a remote model that monitors a range of applications tailored to drive plant efficiency for customers, such as plant process performance analysis and continuous emissions analysis.

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“The Collaborative Operations Centre allows us to better work together with our customers in a more collaborative way, to use digital technology, big data, analysis of big data and so forth to drive solutions�

Kevin Kosisko, Managing Director of BU Power Generation & Water

Utilising ABB Ability – the technology service developed with Microsoft that harnesses device, edge and cloud computing – highlytrained professionals stationed at the centre can crunch key performance indicators and action data into realtime solutions, with ABB upholding a commitment to a 15-minute response time to plant operatives on site.

In the power and water industries, this data-driven process not only solves issues but raises plant performance and helps cut costs through predictive maintenance.

Utilities can benefit from a 15% reduction in boiler start-up costs through ABB Ability remote services, for example, and power plants and turbines could save up to $1mn per day by using Collaborative Operations to prevent unplanned downtime.

Such advanced asset management leads to a 20% average extension to machine life. Technology makes all of this possible, but Kosisko insists the synergies with customers and ABB’s expert knowledge-base is what makes the service stand out.

“We’re familiar with closing the loop with digital technology for our customers, but Ability and the

ABB has 70,000 digital control systems

solutions set around Ability allow us to take it to the next level,” he says.

“It gives us that capability to go beyond what our normal process control can do and really look at things in a larger scale. How can we use data that we aggregate in our process control systems? How can we use the data that comes from other sensors within the process to solve some of our customers’ most challenging problems?

“The Ability ecosystem allows us to bring all of that together on a platform that is scalable, secure and fit for purpose in this space. We have an open architecture and customers can connect to that architecture very easily. Data is not owned by 17

ENERGY 4.0 us but owned by our customers.”

ABB’s service is just a tiny piece of evidence of the sweeping impact IoT is having on the energy and utility sector. A report published by market research specialist BCC Research in November last year predicted that the global market for IoT in the area could be worth $59.9bn by 2022, compared to $21.4bn in 2017, representing a compound annual growth rate of 22.9%.

BCC Research’s market analysis included a detailed look at the spending of energy and utility companies and end users on various aspects of IoT technology, such as hardware, software, services and connectivity.

Investment is ongoing for ABB. 16 Collaborative Operations Centres have opened across its range of divisions outside of Power Generation & Water, including in Marine, Mining, Oil & Gas and Pulp & Paper. It is the owner of 70mn digitally-enabled industrial devices, the most of any single entity on the globe, while spend has been committed to securing the safety of the data it generates for its customers.

One issue that arises from managing such a wide net of IoT apparatus 18

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Susan Peterson-Sturm, Digital Lea BU Power Generation & Water

“Our regional businesses are incredibly close to our customers” Susan Peterson-Sturm, Digital Lead, BU Power Generation & Water

100+ customers already connected to the new Collaborative Operations Centre in Genoa

ad,

is helping its partners find a path through the sea of information. Millions of points of data enter into ABB’s process control systems and millions are generated out of its equipment every day – but Kosisko believes results are only found when expertise is married with truly relevant data.

“I’m not sure the ultimate solution

is out there, but data exists all around us,” he adds. “That data on its own is not necessarily the solution, but it’s about looking at the challenges that you have as a customer – what are the key issues that you’re trying to solve? And then how can you use the data that is available, or do you need to find other sets of data 19

ENERGY 4.0 to help solve those problems?

“It’s a combination of data and expertise, and that expertise exists with our customers who really understand their process and understand how they operate their plants. And then that expertise exists with ABB because we’ve implemented thousands of process control systems.

We have a deep and rich knowledge

IoT in the energy market could be worth $59.9bn by 2022

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of how to control these processes.”

As a technology service provider, customer-centricity runs at the very heart of ABB’s business. It has grown its reputation on a desire to develop long-term relationships with its partners and with the industrial sector facing up to its ‘Fourth Revolution’, ABB is viewed as a safe pair of hands for manufacturers to join forces with as they tackle the challenges presented by digitalisation.

Susan Peterson-Sturm, Digital Lead in the BU Power Generation & Water unit, hosted a question and answer session with key customers in Genoa and acknowledges the fruits born from collaboration.

“Our regional businesses are incredibly close to our customers,” she says. “I know it sounds like everybody says that, but we get to develop solutions in the regions with our customers. Other places that I’ve worked at were very productfocused, so that approach of being able to innovate with your customers has led us to all kinds of really neat pilots that we’ve got going on now.”

Kosisko goes on: “We have to treat each customer as an individual.

We have to understand what their

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“The thing that makes ABB stand out is that we don’t innovate just for the sake of innovation. We innovate for the sake of creating solutions” Kevin Kosisko, Managing Director of BU Power Generation & Water

Workplace at the Collaborative Operations Centre in Genoa, Italy

needs are, what their problems are.

“There is commonality though. If, for example, you have combined cycle power plants, there’s a lot of common designers, a lot of learning that could take place between customers there.

It has to be a unique and somewhat tailored approach to our customer, but 22

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I think the beauty of that is that once you solve some of those challenges, they can then take that solution and maybe roll it out over their entire fleet or roll it out in the similar units that they have in the fleet. There’s real power in that and real bottom line impact in an immediate way.”

ENERGY 4.0

In a world where businesses are having to adapt drastically to keep pace, Kosisko is clear about the qualities that retain ABB as a leader in technological solutions.

“We’ve been at the forefront of innovation for 125 years,” he concludes. “I think the thing that

makes ABB stand out, however, is that we don’t innovate just for the sake of innovation. We innovate for the sake of creating solutions.

“Mix that together with our long history of working very closely with our customers and that’s what we’re all about, innovation to solution.”

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OIL & GAS

INFRASTRU

UCTURE

POWER

TELECOMMUNICATIONS

BLOCKCHAIN

THE BEAUTY OF BLOCKCHAIN As blockchain becomes an increasingly accessible concept, BTL is offering its expertise to the energy industry.

CIO Hugh Halford-Thompson explains why Wr it t e n by N E LL WA LK E R

BLOCKCHAIN WITH THE NEWS earlier this year that BTL Group is firmly entrenched in phase two of its European energy trading project, even completely unrelated industries pricked up their ears at the concept of a startup supporting some of the biggest energy giants in the quick and efficient exchange of data.

Following BTL’s successful pilot last year, in which Eni, BP and Wien Energie were brought together for the company to prove the effectiveness of its Interbit platform, four oil and gas supermajors and five leading energy traders (Eni, Total, Gazprom, Mercuria, Vattenfall, Petroineous and Freepoint) formed a consortium to test the platform which promised to deliver gas trading reconciliation through to settlement and delivery. This is phase two, known as OneOffice.

BTL is changing the game for the energy industry by making blockchain accessible in this way. Traditionally paper and email based, energy may have been an unusual choice for BTL’s expertise, but a perfect one to embrace better organisation and more streamlined trading processes.

CIO and Co-founder of the business, Hugh Halford-Thompson, 28

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Blockchain’s influence on the energy sector is growing

Hugh Halford-Thompson, CIO, BTL

boasts a computer science background and over six years of experience in the blockchain space.

After running a bitcoin brokerage for some time, he decided to leverage the blockchain technology behind bitcoin for enterprise applications. In short, he wanted to discover a way of speeding up global payments with real money while reducing settlement times and reconciliation issues between banks.

“I realised there must be about

a trillion dollars in money that had been sent but not yet received by people and businesses around the world,” Halford-Thompson explains.

“It turned out there’s even more tied up in money that is owed but not yet invoiced for, because we don’t even know how much is meant to be sent due to reconciliation issues. Our pilot project with Visa showed that there was a real reconciliation problem between banks, so we’ve taken that 29

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Generally, energy as an industry has been slow to automate processes 30

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concept and expanded it into other areas – the most developed of which is our energy project, which has been going really well. This is really a way of setting a new standard in a post-trade space, initially in the gas industry.”

After establishing that several energy businesses could work well not just together, but with a startup, phase two – OneOffice – kicked off in December 2017 as production run. At the end of this segment in June, BTL will conduct a parallel run through the entire back-office process, beginning at confirmation.

However, it’s in everything after the initial trading agreement that BTL truly adds value with its platform.

“There are three pillars that Interbit is built on as a blockchain,” says Halford-Thompson. “The three pillars are privacy, scalability, and perhaps most importantly, ease of adoption.”

Ease of adoption, particularly in an industry like energy where blockchain is a less familiar concept, is key. For any business, trying to hire experts in specific fields such as this is nigh on impossible – so what did BTL do? Implement a familiar, simpleto-use code. “We built Interbit in JavaScript, which has been around

“This is really a

way of setting a new standard in a post-trade space, initially in the gas industry

”

Hugh Halford-Thompson, CIO, BTL

for years,” the CIO explains. “It’s very easy to build, maintain and support applications using that, and most of our clients will already have an internal team, and existing software libraries, to help them, making it easy to adopt and following existing programming patterns.”

For the other two pillars of privacy and scalability, BTL has ensured that Interbit blockchains can be connected together – without that, privacy and scale are unachievable. The analogy Halford-Thompson offers is that to reach a certain amount of scale with a traditional system, one wouldn’t simply get a bigger server, but rather a series of servers working in parallel.

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BLOCKCHAIN

Video: CEO & Team Introduce Interbit

“The same is true with Interbit and the blockchain space,” he continues.

“You can get lots of blockchains working in parallel, joining up and sharing where relevant. You also need to be able to segregate the data – which is where privacy comes in – and make sure only the right people are able to see it. You can only do that by segregating chains, and with Interbit you don’t lose any features.”

The way BTL deals with data management better than most is by giving the businesses using Interbit 32

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“Blockchain is

going to transform a whole load of different industries Hugh Halford-Thompson, CIO, BTL

”

”

a shared space. Traditionally, two trading counterparts sharing data, perhaps also with a third party, would each hold a copy of that data and notify one another on updates.

Inevitably, they end up falling out of sync, but with Interbit BTL has created what is essentially a co-hosted server between different counterparts where any party can add data and the system retains its harmony. “That allows for very strong redundancy and a very strong audit trail, with different physical servers and parties storing it whilst getting rid of reconciliation efforts by literally providing that shared space between two companies,” says Halford-Thompson.

BTL’s role is to essentially remove the behind-the-scenes issues that any trade operation experiences. A money transfer takes several days, and banks can’t predict how long, because even they don’t always know. Those issues are to do with data reconciliation, and this being a prevalent problem in the energy sphere made the industry a clear choice for BTL. “In energy, before an invoice is generated and the payments kicked off, they’ve already done their trade together and after that there’s

a whole bunch of data points to get collected. By the time an invoice gets sent out, there are often disputes,” Halford-Thompson explains.

“That’s the data reconciliation issue. Having a blockchain means getting rid of the reconciliation efforts and errors that come up.”

Energy companies generally lack automation, so moving their processes to blockchain immediately de-clogs the issues inherent in their industry. While its needs are less than many other markets, it is an industry overdue rejuvenation, and the ability to have thousands BTL helps energy companies to speed up business processes

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BLOCKCHAIN of chains of data communicating with BTL’s Interbit platform is a breath of fresh air for a somewhat out-of-date collective.

For BTL, however, this is just the beginning.

As the company continues to establish the effectiveness of Interbit on the energy industry, Halford-Thompson and his team look forward to getting involved with other prospects and chasing the way that blockchain is moving beyond being simply a buzzword. “Blockchain is going to transform a whole load of different industries in various developments,” he says. “Whole markets can be transformed at one level, so people form a consortium – like we have in the gas space – and they’ll look at creating something together that potentially eliminates a central party and restructures the way contracting trades are done.”

Halford-Thompson concludes: “It’s not an easy thing to get large corporates to work with small startups – from both sides that can be difficult – but once our documentation is out at the end of Q1, it will show how you can build blockchain using JavaScript to meet the privacy and scalability needs of an enterprise, and that enables a whole wave of applications to be built out, adopted and deployed by companies themselves. Soon enough it’ll be a case of people getting left behind if they’re not exploring blockchain, and with banking and energy leading the way, others will jump on board a lot quicker because we’ve helped to provide the template.”

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“ “Soon enough it’ll be a

case of people getting left behind if they’re not exploring blockchain, and with banking and energy leading the way, others will jump on board a lot quicker” Hugh Halford-Thompson, CIO, BTL

”

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THE NEW POWER GENERATION

R N

The number of renewable cities, driven by forwardthinking communities with a desire for clean energy, is on the rise. Energy Digital speaks to Jodie Van Horn, Director of Ready for 100, part of the United States’ largest and most influential environmental agency, Sierra Club‌ W r i t t e n b y M AT T H I G H

S U S TA I N A B I L I T Y RENEWABLE CITIES ARE here.

Around the world, the prospect of the largest urban centres being entirely powered by renewable energy is fast becoming a reality. Driven by the lower costs of renewables, the safer prospects that such power sources offer and a tangible shift in people power and societal thinking, there are now more than 100 cities worldwide powered primarily by renewable energy.

For places such as Seattle, Vancouver, Oslo, Auckland and Nairobi, that means receiving at least 70% of their overall energy from renewable sources. In a world where fossil fuels still, to a large extent, dominate the global energy mix, that’s an incredible figure in itself.

Some cities, however – Reykjavik in Iceland, Basel in Switzerland and Burlington in the US – currently run on 100% renewable energy.

It’s a trend that’s showing every sign of gathering pace, too. In 2015, for example, the number of cities reaching that 70% mark was 42. Today, it’s 570.

“Cities are leading the global shift to 100% renewable energy,” says Jodie Van Horn, Director of Ready for 100.

Part of the United States’ largest and 40

April 2018

most influential environmental agency, Sierra Club, Ready for 100 is a national campaign that’s working to move away from fossil fuels towards a more equitable and just economy powered by 100% clean, renewable energy.

“Renewable energy is cheaper, safer and cleaner than fossil fuels, and people across the globe are demanding a shift to 100% clean, renewable energy,” she explains.

“City leaders know that moving to 100% renewable energy will protect us from pollution, create jobs and new economic opportunities and ensure that all people have the access to affordable energy.”

Drivers for change The renewable city, then, is the product of a number of factors that have combined to create the future of urban power generation.

Naturally, cost plays a significant factor. Van Horn explains that the price of solar, for example, has dropped by as much as 80% since 2008 with the cost of wind power 41% lower in that same timeframe.

“In January in the States, new record low prices were announced for both wind and solar,” she adds.

“More than 70% of the world’s energy experts agree that transitioning to 100% clean energy is achievable” Jodie Van Horn Director of Ready for 100

“This trend means that we are never going back to relying on dirty and increasingly expensive fossil fuels.”

Cost aside, there’s considerable weight behind the idea that this shift to renewable cities is driven by something more important: community. What is a city, after all, if not a collection of individuals sharing 41

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their lives together? Understand that and it’s easy to appreciate that a driver for this growth is pressure from urban and local communities to create a cleaner future.

“Throughout history, ‘people power’ has driven change on every scale, from community improvements to mass movements. The same is now true as we discuss the shift towards a clean and just energy economy,” Van Horn highlights.

“Cities have reasons to pursue 42

April 2018

a goal of 100% clean energy, but perhaps the biggest reason is that local officials know it’s what people want. A majority of Americans want to live in a society powered by cleaner, healthier sources of energy like wind and solar.”

It’s the reason why, says Van Horn, that across the US from California to the heart of Texan oil country, cities are seeing a switch to clean, renewable energy. Historically, she says, decisions about the country’s

energy policy have been the preserve of the corporate boardroom or venues with no public participation.

“The movement is growing neighbourhood by neighbourhood, city by city, and state by state,” she adds, “in an effort to not only transform how we power our society, but who has the power to make energy decisions that impact our lives. The transition to 100% clean energy is an opportunity to put power back in the hands of local families, businesses and residents.”

Working together for change People power, then, is firmly at the forefront of this staggering growth in renewable cities. And there’s little doubt that all individual commitment to clean energy – think rooftop solar in offices or residential buildings – helps to “decentralise and distribute the benefits of ownership to residents and local business,” says Van Horn.

But there too is a wider requirement for the industry, whether renewable or fossil fuel organisations, to work together to achieve this. Large cities and urban areas naturally represent a high percentage of any major utility provider’s overall retail

sales, presenting both a challenge and an opportunity for change for providers. In the US, as Van Horn explains, the continued growth of customer preference for 100% clean energy is bringing many major electric utilities on board in working with cities to achieve change.

“Just this month, the city of Denver and Xcel Energy entered into an agreement to work together in order to boost the city’s use of clean, renewable energy. It comes after local community leaders and activists across Denver have been calling for the city to move to 100% clean energy. The utility has entered into similar agreements with other 100% clean energy committed communities across Colorado.”

Other examples cited by Van Horn include Salt Lake City, which is working closely with electric utility, Rocky Mountain Power, to achieve the goal of 100% renewable electricity by 2032. “A detailed plan has been released for the city to enhance energy efficiency community-wide, increase investments in local clean energy like solar and to expand zeroemission vehicles as part of the 100% clean energy goal,” she elaborates.

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S U S TA I N A B I L I T Y Change, however, is always a challenge. And to achieve such a significant change will undoubtedly require a fresh mind-set for everyone – from individual level, through energy and utility companies to government, regulatory bodies and policy makers.

“When we see many stakeholders – community members, elected officials, utility companies, business leaders – come together, that’s when change becomes inevitable,” Van Horn states.

Trump vs Renewables In the US, however, proponents of renewable energy are currently facing the challenge of a Trump presidency.

The US president famously withdrew the country from the Paris Agreement, a deal uniting the world’s nations in the fight against climate change.

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Fortunately, in terms of progress, it’s a change in policy that has not impacted the growth of renewable energies as negatively as it could have.

“In Trump’s Paris withdrawal speech, he stated: ‘I was elected to represent the citizens of Pittsburgh, not Paris’,” says Van Horn. “Immediately after, Pittsburgh Mayor Bill Peduto fired back with a response that Pittsburgh is in fact committed to the Paris Agreement and will move to 100% renewable energy.”

Further, after that policy shift

by Trump, more than 7,400 cities worldwide joined forces in pledging to a renewable future. “Thousands of businesses, states and cities stood up to Trump after his announcement, demonstrating that the action we need globally is being led locally,” Van

“We are witnessing unprecedented changes to our energy system driven by customer demand and renewable technology costs coming down more quickly than anyone expected�

Jodie Van Horn Director of Ready for 100

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Horn comments. “Over the past year I’ve seen cities and towns redouble their efforts to meet the commitment our country made to address the global threat of climate change.

“Today, 63 cities [in the US] are committed to transitioning to 100% clean energy. Nearly 200 mayors have individually signed onto Mayors for 100% Clean Energy, signalling their belief that clean energy is still a priority. It’s togetherness, not division that defines the 46

April 2018

global community’s commitment to solving the climate crisis and transitioning to renewable energy.”

Clean energy opportunity Such a global commitment ensures that the number of cities ultimately achieving 100% renewable energy will undoubtedly grow. Worldwide, communities and businesses remain dedicated to the introduction of clean energy while, at the same time, advances in associated technology

HEADLINE

“Today, 63 cities [in the US] are committed to transitioning to 100% clean energy.

Nearly 200 mayors have individually signed onto Mayors for 100% Clean Energy, signalling their belief that clean energy is still a priority” Jodie Van Horn Director of Ready for 100

make the application of such sources increasingly more viable.

“We have a collective responsibility to ensure that as we scale the energy economy, the benefits of renewable energy are fairly and equitably shared across our communities,” Van Horn explains.

“We are witnessing unprecedented changes to our energy system driven by customer demand and renewable technology costs coming down more quickly than anyone expected.

“More than 70% of the world’s energy experts agree that transitioning to 100% clean energy is achievable. When it comes to achieving that target, no two cities will get there in exactly the same way. They must not only asses which resources are most available, but what values will ultimately guide their plans. The transition to 100% clean energy is an opportunity to put power back in the hands of the community and ensure that this is where our new energy system is rooted. In doing that, we are pursuing a world that is both climate-safe and more just by addressing not only how we power our society, but who has power in our society.”

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T R A N S P O R TAT I O N

Trust – how Intel is driving the autonomous revolution Intel CEO Brian Krzanich talks about the tech giant’s innovations with autonomous vehicle development and how trust, surrounding safety, is the key issue with gaining public support…

Writ ten by DAN BRIGHTMORE

T R A N S P O R TAT I O N

INTEL BELIEVES THE single most important factor driving our autonomous future is data – how to process, manage, move, share, store, analyse and learn from it.

It’s a challenge not just confined to the driverless car. Tackling it will require the full depth and breadth of Intel’s portfolio, spanning the 50

April 2018

car, connectivity, and the cloud.

Intel’s CEO Brian Krzanich maintains it holds an advantage with a consistent architecture the industry can work with that scales from a developer’s laptop to the data centre, driving towards an exciting future for transportation as it unlocks the power of data. With that future appearing fast on the horizon

“Autonomous driving is today’s biggest game changer, offering a new platform for innovation from in-cabin design and entertainment to lifesaving safety systems” Brian Krzanich, CEO, Intel

of our shared freeways, Krzanich is already looking further ahead…

“So much of the discussion around autonomous driving has naturally focused on the car as a mode of transportation, but as driverless cars become a reality, we must start thinking of the automobile as a new type of consumer space,” says

Krzanich. “In fact, we have barely scratched the surface in thinking about the way cars will be designed, the interaction among passengers, and how passengers will spend time while they are riding and not driving. In this respect, autonomous driving is today’s biggest game changer, offering a new platform for innovation from 51

T R A N S P O R TAT I O N

“The technology will not matter if there are no riders who trust and feel comfortable using it” Brian Krzanich, CEO, Intel

Brian Krzanich, CEO, Intel

in-cabin design and entertainment to life-saving safety systems.”

As part of its mission to advance what’s possible in autonomous driving, at last year’s Los Angeles Auto Show, Intel announced a collaboration with entertainment company Warner Bros to develop in-cabin, immersive experiences in autonomous vehicle (AV) settings. “Called the AV Entertainment Experience, we are creating a first-of-its-kind proof-ofconcept car to demonstrate what entertainment in the vehicle could look like in the future,” explains Krzanich.

“As a member of the Intel 100-car test fleet, the vehicle will showcase the potential for entertainment in an autonomous driving world.”

Krzanich believes the AV industry will create one of the greatest expansions of consumer time available for entertainment we’ve seen in many years. “As passengers shift from being drivers to riders, their connected-device time, including video-viewing time, will increase. In fact, recent transportation surveys indicate the average American spends more than 300 hours per year behind the wheel,” he reveals.

Expanding on their joint vision for

VIDEO: Intel - Trust and Autonomous Driving

the future of in-cabin entertainment, Intel and Warner Bros unveiled further plans at Automobility LA last November. So, what will in-car entertainment look like with the AV Entertainment Experience? “With this expansion of available time, Warner Bros and Intel imagine significant possibilities inside the AV space,” explains Krzanich. “Not only do we see passengers consuming content ranging from movies and television programming, we imagine riders enjoying immersive experiences never seen before, courtesy of

in-cabin virtual reality (VR) and augmented reality (AR) innovations.”

Harnessing the iconic entertainment portfolio of Warner Bros, Krzanich envisages the opportunity for fans of the superhero Batman to enjoy the immersive experience of riding in the Batmobile through the streets of Gotham City. “AR capabilities render the car a literal lens to the outside world, enabling passengers to view advertising and other discovery experiences,” he adds. However, he admits there’s still the elephant in the room to deal with. Trust.

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VIDEO: Intel’s Role in the Future of Autonomous Driving

“While the possibilities of in-cabin entertainment are fun to imagine, the ultimate test for the future of autonomous cars is going to be winning over passengers,” concedes Krzanich. “The technology will not matter if there are no riders who trust and feel comfortable using it.”

Trust – the key to automation Some experts predict we can save millions of lives and grant mobility to all just by removing humans from the driver’s seat. But Jack Weast, Chief Systems Architect of Intel’s 54

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Autonomous Driving Group, reckons the difference between theory and practice comes down to this: “People are downright scared of robot cars.

In fact, a recent AAA study found that 75% of Americans are afraid to ride in self-driving cars.” However, Weast believes it’s a trust problem that can be solved. “At Intel, we believe we can overcome consumer apprehension by creating an interactive experience between car and rider that is informative, helpful, and comfortable – in a word, trustworthy.”

So, how can Intel help deliver

T R A N S P O R TAT I O N consumer confidence in autonomous vehicles? Its research into identifying user tension points around concepts such as ‘human vs machine judgement’, and ‘giving up control of the vehicle vs gaining new control of the vehicle’, have allowed it to explore trust as a core element of vehicle system architecture and design.

“We believe the technology Intel is bringing to market is not simply about enjoying the ride – it is about saving lives,” assures Krzanich. “In fact, autonomous systems are the logical

extension of seat belts, air bags and anti-lock braking systems. And the Mobileye Advanced Driver Assistance System (ADAS) technology on the road today is already saving lives.

Current ADAS products from Mobileye have proven to reduce accidents by 30%, saved 1,400 lives, prevented 450,000 crashes and saved $10bn in economic losses. However, we cannot stop there. Our long-term goal has to be zero driving-related fatalities.”

Making the self-driving car a reality requires an unprecedented integration

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of technology and expertise.

Mobileye is working with Intel to provide comprehensive, scalable solutions to enable autonomous driving engineered for both safety and affordability. With a combination of industry-leading computer vision, unique algorithms, crowdsourced mapping, efficient driving policy, a mathematical model designed for safety, and high-performing, lowpower system designs, Intel aims to deliver a versatile road map that scales to millions, not thousands, of vehicles.

Mobileye boasts a portfolio of innovative software across all pillars of autonomous driving (the ‘eyes’), which Krzanich believes complements Intel’s high-performance computing and connectivity expertise (the ‘brains’) to create powerful and smart autonomous driving solutions from bumper to cloud.

Is self-driving safe?

“To reach our goal, we need standards and solutions that will enable mass production and adoption of autonomous vehicles,” argues Krzanich. “For the long period when autonomous vehicles share the road with human drivers, the industry 56

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“From entertainment to safety systems, we view the autonomous vehicle as one the most exciting platforms today and just the beginning of a renaissance for the automotive industry�

Brian Krzanich, CEO, Intel

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T R A N S P O R TAT I O N will need standards that definitively assign fault when collisions occur.

To this end, Intel is collaborating with the industry and policymakers on how safety performance is measured and interpreted for autonomous cars. Setting clear rules for fault in advance will bolster public confidence and clarify liability risks for consumers and the automotive and insurance industries.”

Already, Intel and Mobileye have proposed a formal mathematical model called Responsibility-Sensitive

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Safety (RSS) to ensure, from a planning and decision-making perspective, the autonomous vehicle system will not issue a command leading to an accident. It provides specific and measurable parameters for the human concepts of responsibility and caution and defines a ‘Safe State’, where the autonomous vehicle cannot be the cause of an accident, no matter what action is taken by other vehicles.

“Safety systems of the future

will rely on technologies with maximum efficiencies to handle the enormous amount of data processing required for artificial intelligence,” adds Krzanich.

Thanks to its deal with Mobileye, the world’s leader in ADAS and creator of algorithms that can reach better-than-human-eye perception through a camera, Krzanich is confident the combination of the Mobileye ‘eyes’ and the Intel microprocessor ‘brain’ can deliver more than twice the deep

learning performance efficiency than the competition. “That is a huge difference and one that matters. More than two times the deep learning efficiency leads to better fuel economy and less expensive cooling solutions.”

He concludes: “From entertainment to safety systems, we view the autonomous vehicle as one the most exciting platforms today and just the beginning of a renaissance for the automotive industry.”

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H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

“ We recently worked with BizClik Media on an article which characterizes and explains the total value that Kudu Supply Chain has on company growth plans.

From start to the finish, it was a pleasure working with the BizClik team. The feedback we have received from different audience groups on the article was phenomenal.

It has attracted a lot of interest and attention to our company, our growth plans and has definitely created additional value to what we are trying to achieve.”

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HAVE YOU SEEN OUR OTHER TITLES?

TOP 10

TOP 10 LARGEST EXPORTERS OF LIQUEFIED NATURAL GAS

With rising global demand for cleaner alternative energy sources, liquefied natural gas (LNG) has found itself highly sought after across the planet. Here is a look at 10 of the biggest exporters of LNG‌ Writ ten by SHAUN BOWIE

TOP 10

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PAPUA NEW GUINEA

7.4MN TONNES The production of LNG in Papua New Guinea is carried out by PNG LNG, which itself is operated by ExxonMobil PNG limited. The $19bn project is an integrated development that is responsible for commercialising the LNG resources of Papua New Guinea and has both onshore and offshore pipelines and liquefaction facilities. As of March 2018, LNG production is set to stop for up to six weeks due to an earthquake in the country’s remote highlands region. PNG LNG also prides itself on investing back in to the local community and aiding in further development of one of the least developed countries in the world.

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09

OMAN

8.1MN TONNES Oman, located on the Arabian Peninsula, has one major government-run LNG production company: Oman Liquefied Natural Gas LLC (Oman LNG), a governmentowned joint venture company, established by the Sultanate of Oman in 1994. In 2013, it was integrated with Qalhat LNG in order to streamline production and lower costs. It owns three liquefaction trains at its site in Qalhat, with a capacity of 10.4mn tonnes per annum. Unlike some of its oil dependant neighbours, Oman has a more diversified economy with significant portions involving tourism, the trade of dates, fish and agricultural produce.

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TOP 10

TRINIDAD & TOBAGO

10.6MN TONNES Trinidad & Tobago, a twin island state located in the Caribbean, exports over 10mn tonness of LNG annually.

The production of LNG in Trinidad & Tobago is undertaken by Atlantic, which was founded in 1995. Its operations began with a single LNG train, which was completed in 1999, and it now operates with four LNG trains with an output of 15mn tonnes per annum. The country is the biggest exporter of LNG to the large American market, as well as sending product across the Atlantic Ocean to Europe.

However, in recent years there have been worries about the sustainability of the LNG market in Trinidad, with production falling year on year due to gas shortfalls within the country.

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08

RUSSIA

10.8MN TONNES Russia exports roughly 10.8mn tonnes of LNG per annum, which gives the country 4.2% of the global market share in the sale of the energy source. Russia’s ambition in the LNG market has continued to grow, with large swathes of the Arctic becoming suitable for exploration and extraction as new technology has become available. The country’s ambition is also displayed in the recent $27bn LNG Arctic gas extraction co-venture with China, deepening the energy co-operation between the two states in the face of sanctions from the West. These operations take place on the Yamal peninsula and are run

by Yamal LNG. They encompass gas production, liquefaction and shipping with extensive arctic transport infrastructure built-in, as well as an airport and seaport, in order to export the estimated 926bn cubic meters of LNG present.

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06

ALGERIA

11.5MN TONNES The largest country in Africa, Algeria is a major exporter of LNG to Europe, providing 55% of Spain’s LNG requirements in 2016 as well as 16% of Italy’s and 15% of Portugal’s.

The country exports around 11.5mn tonnes of LNG a year, with a 4.5% market share. The strong oil and gas export revenues that Algeria maintains are a significant factor in the economic upturn the country has experienced in recent years. The LNG sector is expected to increase production capacity in the near future, thanks to continued investment and development in the country’s LNG infrastructure.

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TOP 10

INDONESIA

16.6MN TONNES Indonesia, located in south-east Asia, exports roughly 16.6mn tonnes of LNG annually, which translates as 6.4% of the global market. The significant discovery of the Jangrik reserve in deep waters off of the coast of Indonesia in 2009 has given the LNG sector in the country a major boost. The early exploratory work and extraction has been carried out by multinational oil and gas giant Eni, and the reserve forms part of the Muara Bakau reserve, of which Eni has a 55% stake. Production at the site has commenced ahead of schedule, with product destined for both export and the Indonesian domestic market.

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TOP 10

NIGERIA

18.6MN TONNES Nigeria LNG limited is responsible for the production of LNG in the west African country, and with six trains operational, the company’s plant on Bonny Island is capable of producing 22mn tonnes of LNG per annum. Plans are currently in place to increase to a seventh train which will increase production capacity to 30mn tonnes per annum. The Nigerian government is a major stakeholder, with a 49% share, with 25.6% owned

by Shell, Eni controlling 10.4% and Total Gaz Electricite Holdings France owning 15%. With a 7.2% market share and 18.6mn tonnes of LNG exported annually, Nigeria exports and produces more LNG than any other African country.

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04

MALAYSIA

25MN TONNES Malaysia’s first ever LNG project was undertaken in Bintulu in 1978, with the collaboration between Petronas, Shell BV and Mitsubishi resulting in the formation of Malaysia LNG. This company remains at the forefront of LNG activity in the country, being involved in every aspect of the project that is still underway in Bintulu, including infrastructure, training, transportation and extraction. The plant was completed in 1982 with the first cargo being shipped in 1983, and currently has six LNG storage tanks that are capable of holding up to 445,000 cubic metres of LNG, with a seventh currently under construction.

The expansion of operations has also led the creation of a ninth LNG train to keep up with ever increasing demand.

03

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AUSTRALIA

44.3MN TONNES Australia currently exports 44.3mn tonnes of LNG per year, but this may be set to dramatically increase as demand from Asia increases, potentially leading to it becoming the largest producer of LNG in the world. The country currently has seven operating LNG developments, with three more under construction, as well as other projects being considered. A large quantity of the country’s LNG is extracted north of the country’s western coast in the Prelude, Wheatstone and Ichthys gas fields. There is an estimated $80bn worth of LNG projects under construction across Australia.

Recent discoveries of onshore LNG in Queensland have, in part, seen earnings forecasts for 2018/2019 of Australia’s total resource and energy export increase to $211bn.

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01

QATAR

77.2MN TONNES Qatar exports over 77mn tonnes for LNG annually, more than Malaysia and Australia combined, with 29.9% of the market share globally. As of December 2016, the LNG production in Qatar has been provided by one entity, Qatargas. This followed the announcement that that Qatargas would be fully integrated with Rasgas which, according to Qatar Petroleum in April 2018, will save the company $550mn annually in operational costs.

Production under the new Qatargas began in early 2018, with integration fully complete. Qatargas currently operates 14 LNG trains, helping make the country the largest LNG producer in the world.

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E V E N T S & A S S O C I AT I O N S

Events The biggest and best events and conferences from around the world‌ Writ ten by AN D R E W WO O DS

E V E N T S & A S S O C I AT I O N S

SEPA Utility Conference Rancho Mirage, CA, USA 23-25 Apri

This isn’t a trade show as such, but an event where ‘utilities go to share with other utilities on how they get things done in a confidential, intimate environment’. From issues like how to speed up your solar interconnection queues or how to best determine the locational value of your DER assets, there’s a utility expert at this conference who has the answer. www.sepapower.org

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BI Q RE ZCL UO TE I C DI EIV CK 15 SC E O A 1 TO UN 5 T* %

April 9-11, 2018 | Houston, Texas

Optimizing Safety, Sustainability and Productivity to drive Business Performance Excellence Over 40 industry-leading speakers will share how to:

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Understand the impact of Human Factors on creating a High Reliability Organization Identify waste, reduce downtime and lower costs during STOs Improve your OMS to better identify – and eliminate - sources of risk and value loss in your operations Increase operational visibility by optimizing data and information management - to minimize unplanned events Detect whether your work environments, systems and processes are increasing the likelihood of a risk occurring Maximize yield, improve efficiency and enhance safety performance across your plants

Michiel Van Noort Global Head of Continuous Improvement Downstream Royal Dutch Shell

Nev Lockwood Global Operational Excellence Director Albemarie

John Quigley Director Operational Reliability Valero

Hugo Ashkar Global Risk Manager BP

Matt DiGeronimo Vice President Operations Veolia

Patrick Wallior Sr. Director Health & Safety Univar

Manny Ehrlich Board Member U.S. Chemical Safety and Hazard Investigation Board

Anchal Liddar Director New Programmes and Operational Excellence American Petroleum Institute

Wendy Schram

Camille Peres Assistant Professor Environmental and Occupational Health Texas A&M University

Chad Broussard Director of Reliability Phillips 66

Jim Wetherbee Astronaut and Author Controlling Risk: 30 Techniques for Operating Excellence

Operational Excellence Improvement Specialist Global Expert Partner for Procedure Management

Dow Chemical

Download the 2018 agenda *Available to In House Industry Professionals on standard rates only.

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ASEAN Sustainable Energy Week (ASE) BITEC, Bangkok, Thailand 6-9 June

This massive show expects 27,000 visitors, over 1,500 brands and over 80 seminars tackling renewable energy sources and the latest technology in this area. Wind and solar power are among the many systems and programmes featured and discussed along with thermal and waste-to-energy, hydro-powered programs, biomass and other green technology. Renewable energy and energy efficiency clinics staffed by experts are also conducted at the show. www.renewableenergy-asia.com/AbouttheShow 83

E V E N T S & A S S O C I AT I O N S

Intersolar Europe 2018 Messe München, Munich, Germany 20-22 June

Intersolar Europe is the world’s leading exhibition for the solar industry and its partners and takes place annually at the Messe München exhibition center in Munich, Germany. The event’s exhi­ bition and conference both focus on the areas of photovoltaics, solar thermal technologies, solar plants, as well as grid infrastructure and solutions for the integration of renewable energy. Since being founded 26 years ago, Intersolar has become the most important industry platform for manufacturers, suppliers, distributors, service providers and partners of the solar industry. www.intersolar.de/en/home.html

Ees North America 2018

Moscone Center, San Francisco, CA, United States 10-12 July Celebrating its 10th anniversary, Ees will welcome hundreds of 530 exhibitors and 15,000-plus trade visitors. The conference features 40 sessions and 25 workshops with more than 200 speakers. With over 20 years of experience, Intersolar brings together members of the solar industry from across the world’s most influential markets. Intersolar exhibitions and conferences are also held in Munich, San Francisco, Mumbai, Beijing and São Paulo. www.ees-northamerica.com

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In conjunction with :

Silver Sponsor:

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Video: POWER-GEN & DistribuTECH Africa 2017 at the Sandton Convention Centre

POWER-GEN & DistribuTECH Africa Sandton Convention Centre, Johannesburg, South Africa 17-19 July

With 3,000 attendees, 100-plus speakers and 70-plus exhibitors, POWER-GEN is Africa’s premier electricity industry forum that brings together international business leaders and technical experts committed to powering up a continent. www.powergenafrica.com

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Intersolar South America 2018 Expo Center Norte, José Bernardo Pinto St, 333, São Paulo, Brazil 28-30 August

With 11,500-plus visitors, 1,500-plus conference attendees and 180 exhibitors, Intersolar has become the most important platform for manufacturers, suppliers, distributors, service providers, investors and partners of the solar industry. Intersolar South America takes place at the Expo Center Norte in São Paulo, Brazil, and has a focus on the areas of photovoltaics, PV production technologies, energy storage and solar thermal technologies. www.intersolar.net.br

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E V E N T S & A S S O C I AT I O N S

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Offshore Wind Executive Summit

Norris Conference Centers, Houston, TX, USA 13-14 September

Bringing together decision makers from wind and offshore oil and gas, both from the US and Europe, the Offshore Wind Executive Summit provides the forum to establish new business relationships. Discussion points include project development, important policy issues and supply chain. www.offshorewindsummit.com

Asia Power Week

ICE, BSD City, Jakarta, Indonesia 18-20 September 2016 saw Asia Power Week take place outside of the ASEAN region, and also for the first time in South Korea, at KINTEX, Gyeonggi-do. For the second year in succession event attendance records were broken, with over 8,300 delegates and visitors attending the three co-located events. The event attendance record was then further broken in 2017 in Thailand, for the ninth staging in Bangkok. This year, for the first time Asia Power Week will take place in Indonesia at ICE, in BSD City, Jakarta. www.asiapowerweek.com

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E V E N T S & A S S O C I AT I O N S

Intersolar India

Bombay Exhibition Centre, Mumbai 11-15 December With events spanning four continents, Intersolar is the world’s leading exhibition for the solar industry and its partners.

‘Our objective is to increase the share of solar power in the energy supply. By providing first-rate services, our exhibitions and international conferences bring businesses, technologies and people from the most important markets around the globe together. We have 25 years of experiences in opening up markets, providing specialist knowledge and creating links’ www.intersolar.in/en/home.html

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Securing Sharjah’s

SUSTAINABLE FUTURE Written by Catherine Sturman Produced by Robert Gray

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Chief Efficienology Officer Eng Afra Alowais discusses SEWA’s commitment to meeting the utilities needs of its citizens and businesses population of just 2,000 in 1950, Sharjah has witnessed unprecedented growth.

Now the third largest city in the United Arab Emirates, its population exceeded 900,000 in 2010, and is set to surpass 1.5mn by 2020. To cater to such increased demands on its utility services, Sharjah is increasingly implementing new projects, technologies and partnerships to attract and retain talent in the region and further boost its economy.

One such area of focus is the demand for electricity, particularly within peak hours. This is in addition to the growing need for reliable gas and water supplies to accommodate the city’s expansion.

Responsible for regulating the power industry in Sharjah, the Sharjah Electricity & Water Authority (SEWA) has undergone a significant change.

The first utility provider in the Emirates to secure ISO50001:2011 certification in Energy Management Systems, SEWA

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MIDDLE EAST

“By regularly hosting customers in the Majlis of the Happiness Centres, SEWA is committed to understanding its customers’ needs”

harnesses renewable resources and has undertaken a number of strategic projects to support the green growth of the city.

Whilst its power capacity has been increased and indeed stabilised, the business remains determined to provide the best value and services, exploring new business models and processes to cater to the increasing expectations of its customers.

Appointed as Chief Efficienology Officer in 2016, Eng Afra Alowais explains that SEWA is developing ‘green growth’, alongside a strong sustainability approach across all of its operations. Responsible for driving the initiatives relating to efficiency and technology, Eng Alowais will thus contribute to the sustained adoption of best practices in the entire UAE power sector, spanning generation, transmission and distribution.

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Chief Efficienology Officer Eng Afra Alowais

tal.com

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MIDDLE EAST

SEWA employees at a company innovation event

INCREASED DEMAND Overhauling its water lines in Sharjah has been the first step of SEWA’s sustainability strategy.

“After careful analysis, we determined it was more cost-efficient to retrofit the old water lines. These are expected to last more than 30 years and continue to meet the highest environmental regulations,” Eng Alowais says.

“SEWA is one of the main supporters of the national agenda for demand side management endorsed by the Federal Ministry of Energy.

This is also a policy to ensure water security and is the cornerstone of SEWA’s Strategic Plan.”

The projects will also seek to ease any water shortages experienced, and increase

“SEWA is one of the main supporters of the national agenda for demand side management endorsed by the Federal Ministry of Energy” Afra Alowais, Chief Efficienology Officer, SEWA

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the capacity of traditional water lines.

In 2017, the company installed over 80,000m of new water lines, which will deliver over 100mn gallons of water per day. Its projects will also utilise new materials and technologies to increase water conservation, such as digital tools to detect, and help to alleviate potential water leaks.

Fostering or establishing strategic relationships with more than 35 international companies has enabled SEWA to participate SEWA recognises in knowledge sharing to innovative staff guarantee best practices. The company has also recently been in talks with GE to further reduce its emissions as part of its 2020 Vision, promoting clean energy and advancing Sharjah as a City of Conservation. “SEWA has started an Energy Efficiency Program in line with the vision of H.H. Sheikh Sultan Al

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Qasimi for Sharjah to become the Sharjah City of Conservation, with the aim to save 30% of energy through energy efficiency initiatives,” explains Eng Alowais.

“Recently, we have launched an ambitious retrofit programme under the mandate of the Energy Efficiency Program. We also aspire to create a sustainable shift in consumer behaviour and their energy consumption practices. This will achieve a consequent reduction in energy and water resources used and provide financial savings for the participating companies.

“Furthermore, The Clean Energy Business Council have supported our endeavours.”

“Our customers are prosumers who want to have a voice in how their utilities are managed and operated” Afra Alowais, Chief Efficienology Officer, SEWA

CUSTOMER ENGAGEMENT By regularly hosting customers in the Majlis of the many Happiness Centres in the emirate, SEWA is committed to understanding their needs and works to extend this dialogue with them through social media and ad hoc projects.

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Interview with Sky News arabia, Emarat TV

“We held some productive focus groups during the innovation projects and will sustain these interactions,” adds Eng Alowais.

“Our customers are prosumers who want to have a voice in how their utilities are managed and operated. We have introduced a channel for customers to communicate directly with the SEWA Chairman and the new insights this has enabled are invaluable.”

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Utilising the FORTH Innovation Method, SEWA recognised that customers were behaving differently in the way that they had historically interacted with utility providers.

“Customers were becoming ‘time-poor’ and welcomed the chance to perform business online,” notes Eng Alowais.

“We gained a far deeper insight into customer needs through a series of customer focus groups.

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We received excellent co-operation from a number of our business customers who participated and helped us understand how to enhance our services and to investigate future opportunities.

“Several new business cases were presented, at the conclusion of each innovation project, and SEWA was the first organisation in the Middle East to use this new innovation method,” adds Eng Alowais.

Listening to customers’ concerns surrounding sustainability, and their desire to access and pay bills online, has prompted SEWA to implement Green Billing.

“Green Bill has been optimised for use on a mobile app and customers have the flexibility to use a variety of channels to scrutinise their bill. It was a ‘no-brainer’ for us to adopt this because

it reduces our overheads and immediately contributes to our global sustainability goals,” says Eng Alowais.

Through the Green Bill campaign, SEWA reduces emissions by eliminating the need to print invoices, and which additionally improves security of customer data. Invoices can be delivered monthly through a number of digital platforms, and grants over 400,000 subscribers the ability to pay their utility bills securely online.

Dr Rashid Alleem w w w. e n e rg y d i g i t a l . c o m

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NEXT STEPS SEWA has received unwavering support from H.H. Sheikh Sultan Al Qasimi, who has placed increased value on the learning and development of human capital and the quality of life of inhabitants in the emirate, which is coupled with the vision and sustainability leadership of SEWA Chairman Dr Rashid Al Leem.

Beyond this, SEWA will continue to partner with external stakeholders to enable long-term success and strong employee engagement.

“SEWA is an approachable company with a willingness to embrace new ideas, transform and grow,” concludes Eng Alowais.

“Over the next year, we will align our stakeholders and drive the focus towards preparedness for achieving planned energy efficiency.

“We will be on track to achieve a 30% reduction in consumption patterns in Sharjah emirate by 2020. The business of our customers will be able to continue to grow but energy waste will be reduced considerably as awareness of the processes spreads.”

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Afra Alowais and the team at SEWA open a new project

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Closer to the market, closer to the customer Written by Dale Benton Produced by Robert Gray

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OLYMPUS MEA has established a regional office in Dubai as it moves closer to the market and closer to the customer

“

As a company we recognised that you cannot manage the customers in a region like Africa and the Middle East from a few thousand kilometres away, you have to be within the region,” says Maurice Faber, Regional Managing Director, Middle East Africa, Olympus MEA FZ-LLC, a subsidiary of Olympus Europa SE & CO. KG. For any company, particularly one with customers, end-users and clients all over the world, the importance of having a base in the regions it serves cannot be understated.

Being closer to the market makes a company closer to the customer and being closer to the customer enables a far greater level of service delivery.

This was certainly the driving force behind Olympus’ decision to open up a new base of operation in Dubai in 2017, one that would cover the company’s operations across the Middle East, Africa and

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Turkey. The regional headquarters also includes a training centre and a high-tech repair workshop.

“This allows us to be close to our distributors and our end users,” says Faber. “But it also allows us to have our own sales force within the region and have specialists all over the region.”

As an international company supplying reliable, economical technology systems including innovative test, measurement, and imaging instruments to markets all over the world, being closer to the customer and end user proves crucial in delivering unrivalled service and solutions.

This becomes no more apparent than in the supply of technological equipment.

“You really need to be close to the end customer to really support them and you have to be able to supply after sale service

MIDDLE EAST

“You can’t just supply high technology equipment to a remote area. It has to be calibrated at least once a year. As we are now in the local region, we can do that in a much shorter timeframe as opposed to sending it back to Europe” MAURICE FABER Managing Director, Olympus MEA

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in each country,” says Faber.

“You can’t just supply high technology equipment to a remote area. It has to be calibrated at least once a year. As we are now in the local region, we can do that in a much shorter timeframe as opposed to sending it back to Europe.”

Olympus MEA has a vision, one that extends beyond providing innovative technology solutions and enabling efficiencies to its client base.

The company is a firm believer in being more than just a company and becoming a key contributor and driving force of economic growth of a region.

This role as a contributor to economic growth is something

that Faber is extremely passionate about and it’s a passion that radiates across the company’s staff.

Heading up the new regional headquarters as General Manager is Albert Altjerman, who shares that vision and drive not only of Faber, but Olympus MEA. “We are all aligned to the same vision,” says Alterjman. “It’s about supporting and building a strong and solid region and I feel we don’t see challenges or hurdles, we see opportunities.

“Part of our vision is to grow the business, but, we can only achieve that by being closer to customers through providing the best training,

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transferring technologies and knowledge to all of our regions.”

Everything that Olympus MEA does is geared towards, ultimately, better serving the customer and end-user. But, in order to do so, it must first ensure that it can better serve its staff, its distributors and its partners. In moving closer to the market, Faber believes that this will only enable greater communication and greater relationships.

“The message is, we are here,” says Faber. “Whereas before when we wanted to communicate with our people on the ground

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and in the regions, it would be phone calls, emails and in some cases flights out to see them.

“So now we have as much face to face contact as we can, regular meetings and catch ups. But where it’s still not viable, we work with conference calls to ensure that we are all aligned to the same vision, the same goal and the same strategy for Olympus MEA.” As with many companies that provide solutions to a wide number of industries across the world, Olympus MEA’s business model centres around a strong distributor

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“Part of our vision is to grow the business, but, we can only achieve that by being closer to customers through providing the best training, transferring technologies and knowledge to all of our regions” ALBERT ALTERJMAN General Manager, Olympus MEA

network and strategic partnerships.

Being an international business, Olympus MEA already had a footprint in the region with a number of local distributors, but for Faber it wasn’t enough.

“There were several areas where we did not have the level of market coverage that we wanted and with the level of variety of equipment that we provide, each piece needs its own partner specialist,” he says.

“And so that means we must look and partner with the right partners and that’s not always easy. But we have some really good people on

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the ground, we’ve partnered with some really strong partners but we continue to look out for more.”

Working across relatively large markets and smaller markets, having the right partner is important not only in the delivery of market leading solutions, but important in pushing the company beyond its capabilities and driving growth and true value.

“Where we concentrate is getting the right partner, with the right visions, the same mentality and the same goals as Olympus MEA,” says Faber, “and that boils down to innovation, integrity and market coverage.”

Being closer to the customer is one thing, understanding the customer is another and as Olympus MEA serves customers in industries such as aviation, health and oil and gas, understanding the specific needs of each sector is crucial.

“With so many customers, it’s very difficult to understand and realise their needs here when you’re sitting in Europe,” says Faber. “Each customer works in a complicated environment, one that you need to see up close and only then can you get the full picture.

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“Where we concentrate is getting the right partner, with the right visions, the same mentality and the same goals as Olympus MEA, and that boils down to innovation, integrity and market coverage.”

MAURICE FABER Managing Director, Olympus MEA

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Only then can you provide complete solutions to your end customer. This is what we are doing at Olympus MEA.” With the inauguration of the regional headquarters finalising in early 2017, Olympus’s journey of expansion and move closer to the market is still ongoing. As the company looks to the future and explores future growth opportunities, strip it all down and Faber is keen to stress that it has been and always will be the customer that drives the company forward.

“My perfect vision is for every end-user and customer considers us as preferred partner,” says

Faber. “No matter what industry, we want to serve those end users in the best possible way and that they can trust us as partners.”

This is a feeling shared by Alterjman. “It’s about working with the key decision makers in our industries and collaborating to fit their needs,” he says.

“To support them with our technologies, support their operations and their visions. I’m very proud to be a part of this great organisation I’m very proud that I have an opportunity to serve my region, to serve my people and to serve the customers.”

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A WO LEADE SUSTAI DISTR ENER

Written by Leila Hawkins

ORLD ER IN INABLE RICT RGY

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Q ATA R C O O L

“We reduce electrical consumption by almost half. Air conditioning is at its peak 75% of overall electricity consumption during the summer months, so that’s huge” Yasser Salah Al Jaidah Chief Executive Officer, Qatar Cool 120

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ENERGY

Qatar Cool demonstrates how it’s possible to be a world-leading, wholly sustainable district cooling provider in a region with scarce water and soaring temperatures

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atar boasts temperatures that rarely drop below 23 degrees, something which, along with its many shopping opportunities and luxury hotels, makes the country hugely appealing to tourists wishing to escape cold winter months.

However, the climate comes with its challenges: water is a precious resource, and air conditioning, an energy-intensive system, is required almost all year round.

A far more sustainable system is district cooling. Rather than use electricity to cool the air like conventional air conditioning does, it employs chilled water that is transported through underground pipes, and can be recycled from a number of sources like seawater.

Qatar Cool, a global leader in district cooling, uses Treated Sewage Effluent

(TSE) in two of its cooling plants, which is essentially wastewater that has been filtered of contaminants.

Sustainable cool Chief Executive Officer Yasser Salah Al Jaidah explains that its main benefits are energy efficiency and savings in both operational and capital expenditure. “We reduce electrical consumption by almost half.

Air conditioning is at its peak 75% of overall electricity consumption during the summer months, so that’s huge. Obviously as a consequence we reduce CO2 emissions, by reducing the demand for electricity.”

A recent study they completed found that over the last eight years they have saved over a billion tonnes of CO2, equivalent to 1.9bn kilowatt hours of electricity. The cooling system

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MIDDLE EAST

also reduces maintenance costs, as the company employs an economic scale principle whereby each client maintains their own system.

Another benefit is aesthetic. “If you see high rise buildings you don’t see these big cooling towers sticking out at the top” Al Jaidah says, as internal piping means there is no need for the traditional condenser units on the roof.

Al Jaidah says these efforts make Qatar Cool “a very sustainable company, more so than any conventional cooling company out there”. Its experience of using TSE has led to an ongoing 25 R&D projects with non-government entities and universities. “We’re trying to push the envelope to make this business even more sustainable. An example is trying to look at the oxidisation of TSE, looking at evaporation, how we can capture that, and condensation recovery systems.”

Its drive to be as sustainable as possible has won several recognitions from international institutions, and it is in fact part of their mission statement.

“We’re a safe, reliable energy efficient and responsible provider of district

“We’re committed to supporting the environment, and the development of Qatar, and to create shared value for the customers, communities and shareholders” Yasser Salah Al Jaidah Chief Executive Officer, Qatar Cool

cooling services,” Al Jaidah says.

“We’re committed to supporting the environment, and the development of Qatar, and to create shared value for the customers, communities and shareholders. Our vision is to be recognised as the best in class provider of district cooling services.”

Qatar Cool currently operates two major districts, including the world’s largest district cooling plant at The Pearl-Qatar, a man-made island in Doha. A fourth cooling

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YASSER SALAH AL JAIDAH - CEO Yasser Salah Al Jaidah joined Qatar Cool on the 18 January 2015, as the Chief Executive Officer. Al Jaidah is primarily accountability for the planning, management and direction of the day-to-day aspects of the business of the company subject to such policies and directives as the Board may adopt. Al Jaidah has the responsibility from legal compliance, mission and vision, policy and planning, governance, financing and community relations. His main objectives for the organisation will focus on three main themes operational excellence, customer management and aggressive growth through development.

Before joining Qatar Cool, Al Jaidah was the General Manager and Director of South Hook LNG in the United Kingdom, the largest liquefied natural gas (LNG) terminal of Western Europe and provider of 20% of the United Kingdom’s LNG consumption. He completed a bachelor of science in Electrical Engineering from the University of Missouri in the United States, he is also certified as a Project Management Professional (PMPŽ) from the Project Management Institute (PMI) and has an Executive MBA from HEC-Paris in Shanghai, China.

He has over a decade of energy experience and has held positions throughout the field which include maintenance, operations engineering, project management, marketing and venture projects.

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plant is under commissioning in the West Bay district of the city, which is being built to LEED (Leadership in Energy and Environmental Design) certifications. Once completed, it will have a cooling capacity of 40,000 tonnes of refrigeration and, in contrast to the other cooling plants in West Bay, will use reverse osmosis.

As a whole, Al Jaidah says Qatar Cool is “one of the five largest district cooling companies in the world. With that comes a lot of

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responsibility with making sure that we have the best standards, and the best trademarks in place, because we’re a leader of the pack.”

Benchmarking He explains that the biggest challenge is not having benchmarks for comparison. “There’s nobody out there that is doing what we’re doing to learn from. With that there’s a lot of trial and error, and a lot of learning over time, what to do and what not

MIDDLE EAST

do to, because not only are we one of the biggest, but we’ve probably got one of the most complex grids of any district cooling facility out there.”

To address this, Qatar Cool uses consultants to ensure that tariffs, costs and energy efficiency are in line with those of its competitors. “That’s how we gauge ourselves,” Al Jaidah says.

The other challenge is operating in a new, unregulated market, which gives rise to misconceptions on the part of the public. “People perceive that

we’re taking advantage of our position and our size. We’re not because we’re continuously benchmarking ourselves and our tariffs against the other players in the region. If regulations were put in place, I think that would settle minds about the industry, especially the tariffs perspective.”

Working with Tarsheed, a national programme that promotes efficient use of energy and water, has helped with this. Tarsheed works with government agencies to promote

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“There’s nobody out there that is doing what we’re doing to learn from. With that there’s a lot of trial and error, and a lot of learning over time” Yasser Salah Al Jaidah Chief Executive Officer, Qatar Cool

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MIDDLE EAST

district cooling, and Qatar Cool has a MoU with the organisation, in addition to a Tarsheed award for energy conservation. There are also key partnerships with Tabreed, a fellow district cooling company, and a number of academic and energy institutions that can assist with technical issues.

Social responsibility is another important part of the company’s culture. It runs annual events such as Conservation Week and Water Week with Tarsheed, Earth Day with local schools, and school awareness activities on the theme of energy conservation. Last year it won the CSR Leadership Award from Qatar University.

New technology already plays a huge role in all of Qatar Cool’s processes, as everything is digitised, from controlling the water flow to chemical balancing. In the near future, it is looking further into the advantages that implementing artificial intelligence (AI) and machine learning can bring to district cooling.

There’s certainly plenty of development ahead.

The country is undergoing dramatic construction because of the upcoming World Cup in 2022, with new shopping malls, hotels, train stations, homes and restaurants springing up. These present myriad new opportunities for Qatar Cool. In the next five years Al Jaidah sees the company expanding not just within Qatar, but potentially beyond its borders too.

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Reimagining the utilities sector with trailblazing technologies Written by Laura Mullan Produced by Andrew Lloyd

CADENT GAS

With a pipe network connecting 11mn homes and businesses, Cadent Gas is using technological innovation to meet its customers’ needs, today and tomorrow

H

ow would we set up the company if we were starting from scratch? If we were a startup, what would we do?

These are the wide-reaching questions that Cadent Gas asked itself when the firm decided to diverge from the National Grid last year and carved out its own path in the utilities sector.

With an invigorated startup mentality and technological ingenuity, the UK-based company has developed a strong tech strategy and is set to become a frontrunner in the competitive utilities industry.

A startup mentality With over 18 years’ experience in the energy and utilities business, the task of developing a brand

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CEO, Chris Train

new digital roadmap has fallen into the capable hands of Chief Technology Officer James Houlton, who described the company’s separation from the National Grid as a crucial catalyst for change.

“The biggest change I have seen is that we now have a real startup mentality,” observes Houlton.

“Separating from National Grid has allowed us to lose the shackles of such a large utility organisation. It’s allowed us to ask ourselves ‘How

would we set this up if we had a clean slate? If we were startup what would we do and how would we do it?’

“This mentality is helping our team drive performance, drive efficiency, and really care about the lives of the people that we affect on a daily basis - our customers” he adds.

Technological ingenuity Re-evaluating its industry standing has allowed Cadent to reimagine a new technology pathway.

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“The biggest change I have seen is that we now have a real startup mentality” James Houlton, CTO, Cadent Gas Understanding and adopting practices followed by major technology players such as Amazon and Microsoft is one way we see giving Cadent a competitive edge, says Houlton.

“The business can’t operate without technology and technology can’t operate without the business,” says Houlton. “There’s much less of a divide as there has ever been. When we devised the IT strategy we started by talking to our business colleagues to understand some of the challenges and the pain points they have and how we can serve our customers better.

“It’s about understanding what we are we driving for, what our goals are and what type of

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organisation we want to be.”

Technology has, by all accounts, become a fundamental element of Cadent’s operations.

It’s no longer the job of the IT department, it’s the responsibility of everyone in the organisation.

It’s no longer a supplementary function, it’s a driver of change.

In many aspects, technology is changing the operating model of the organisation, says Houlton.

Driving efficiency and excellence “In some cases where we’d traditionally turn to human resources to do things, we’re asking, ‘could technology deliver that function in an easier, consistent and more efficient way?’” Houlton says.

“Through robotics and automation, for example, we’re looking at how we can be more effective and readily available because technology can run 24/7, whereas humans can’t,” he adds.

“It’s also about improving the quality and efficiency of delivery, so where a human could make errors, automation and robotics could eliminate these.”

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CADENT GAS

“I’m a great believer in the fact that you can’t really futureproof technology because of the pace and the rate that things are changing today” James Houlton, CTO, Cadent Gas

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EUROPE

The origins of the firm’s digital transformation can be traced back to April 2017, when National Grid sold a majority stake in its gas distribution business and became Cadent, an independent, privately-owned organisation.

As part of this division, Cadent also has to separate all of its technologies – its networks, the data centres, applications and more – by March 2019. It is a mammoth task, but Houlton says that it’s helping the Cadent team to focus on what matters – “being as efficient and effective as we possibly can, maximising performance and productivity, and delivering a great service to our customers.”

An agile, fast-moving platform But when technology is everchanging and constantly improving, how does Cadent keep up with the pace of innovation?

“I’m a great believer in the fact that you can’t really future-proof technology because of the pace and the rate that things are changing

today,” Houlton says. “Our strategy was to create a foundation that allowed us to be agile and fast-moving so that we could respond to the changing demands of the business.”

To this end, Houlton says that the company’s move to a public cloud, specifically Amazon Web Services (AWS), was “fundamental” to give the company the scalability and flexibility it needed to deliver solutions quickly.

A competitive edge What’s more, Cadent’s strategy has also involved looking at the areas where it equaled competitors in the marketplace such as its back-office operations, HR, finance, procurement, and its ERP system, and standardising the back office to maximise efficiency and value. Keen to deliver an effective SAP transformation, Cadent is moving to SAP S/4HANA for its back-office functions. They key is simplification – removing the complexity built up over multiple years and adopting best practice driven by our technology.

“It’s been an interesting shift in culture and conversation,” Houlton

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says. “Those areas of the business are very keen to standardise the way they operate and their back-office processes around the technology.

This is driving standardisation of the business processes and is shifting the way we operate, our attitude and our mindset.”

Simultaneously, Cadent has also highlighted the core areas which differentiate the business, such as its field technology, its customer experience, and its Critical National Infrastructure, and is ramping up technological investment in these areas.

Such investments have seen Cadent explore the use of modern innovations such as virtual reality, mixed reality, sensor technology and the Internet of Things, to add value to the organisation.

“If we didn’t take a look at these technologies which offer flexibility, agility, and scalability, then we’d be left behind,” says Houlton. “These technologies are key to help us achieve our strategy, but they will also ensure that Cadent pushes to

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the top-of-the-pack. We are a new organisation, we want to do things differently. We’ve got a massive focus on efficiency and these technologies in the marketplace allow us to achieve that by reducing costs and reducing waste.

“We’ve tried to create a culture that showcases how technology can make us fast-paced and agile,” he continues. “It doesn’t always have to be a multi-year, or multi-million-pound technology to deliver a quality service. We can

EUROPE

turn things around very quickly, we can use digital technologies and it doesn’t have to be costly.”

Sustaining strong partnerships Such a root-and-branch transformation of Cadent’s digital capabilities wouldn’t be possible without its strong strategic partnerships which are helping the company on its journey to become a technology-enabled, technology-driven organisation.

“We can’t do it alone,” notes Houlton. “We need to be close to what’s happening in the technology sphere, and utilising our partners is helping us achieve that by accelerating our performance and growth. We have capability, but we can’t attract the talent or the investment that our strategic partners can. Without those partnerships, we wouldn’t be as successful as we are going to be, and we have been so far.”

Houlton says that the company’s five-year partnership with HCL Technologies will be vital for its digitisation strategy. “HCL Tech is

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“If we didn’t take a look at these technologies which offer flexibility, agility, and scalability, then we’d be left behind” James Houlton, CTO, Cadent Gas our main application support and delivery partner,” he explains. “The firm has a wide breadth of experience and a large client base which we can really make use of. In terms of the thinking that’s out there, some of the solutions that they’re delivering for us are really accelerating our route to market and helping us grow.

“SAP has also been a key partner as we’ve got a large SAP footprint,” he continues. “Changes in that space, in terms of engineering capability, are going to be key. Therefore, we’re

utilising its global experience and the breadth of its customer base to really understand what other people are doing, how they’re really being performed, and bringing that back in. It’s really accelerating our thinking and our innovation.”

On top of this, Amazon and Microsoft are key partners which Houlton describes as key accelerators for technological innovation.

“Amazon’s cloud platform AWS has been fantastic and we’re also working with the company to explore how they achieve customer excellence because they are stand-out in this area,” he says. “We’re working closely with Amazon to see how we can drive innovation across the company more than we could do if we were doing it alone.

“We’re also talking to Microsoft about our challenges and how we could better innovate,” he continues.

“We’re talking to them about analytics, so for example, how we could use the Office 365 platform to really draw out some great analytic insights which could promote employee productivity.”

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CADENT GAS

“We want to be a shining example that industry leaders and our strategic partners use as a reference point�

James Houlton, CTO, Cadent Gas

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Cadent Hinckley team

Above and beyond Cadent’s startup mentality, technological ingenuity and strong industry partnerships have culminated to create a firm which has achieved meteoric success in its brief history.

The UK firm is quickly becoming one of the top gas distributions companies in the country, but for Houlton, it’s also about setting an industry-wide standard of technological and business success.

“We would like to see Cadent standout as an industry leader and a technological leader,” he reflects. “We want to be a shining example that industry leaders and our strategic partners use as a reference point as to how companies can use technology to maximise value for their customers and derive benefit for the organisation.”

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INSIDE MEXICO’S KEY CATERPILLAR DISTRIBUTOR Caterpillar is the largest distributor in Mexico, making a name for itself in the energy sector with its equipment and aftersales service

Written by Mateo Rafael Tablado Produced by Jassen Pintado Interviewee Dr. Martín Jorge Dieck Assad, CEO for MADISA

M Á Q U I N A S D I E S E L , S . A . D E C . V.

B

eing heralded as Caterpillar’s largest distributor in Mexico is just the tip of the iceberg for MADISA (Máquinas Diesel, S.A. de C.V.), which also ranks among CAT’s top five partners in Latin America.

MADISA is renowned for offering accessories, software and other attachments and add-ons suitable for its available Caterpillar vehicle and machinery portfolio, enabling these equipment to perform at full potential. This is bolstered by hardto-match aftersale service and financing options for clients in many sectors, including marine catering for Mexico’s Secretariat of the Navy.

Besides notable CAT offhighway vehicles, MADISA supplies platforms, lifts, cranes, power generators, compressors, concrete pumps, farming machinery, drills, crushers and other equipment.

The company’s presence increased to 70 locations, covering two thirds of Mexico’s territory after acquiring MAQSA in 2016, whose commercial department’s 500 team members are ready to offer the best support for new or used machinery acquisitions

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or rentals, finding replacement parts, provide maintenance and monitoring services, as well as training for proper equipment use.

On a global context, last June MADISA moved up four places to #78 on the International Rental News magazine top 100 best machinery rental companies worldwide, after achieving #82 in the 2016 list. MADISA is the highest-ranking company from Latin America (out of two) in IRN’s top 100. Further, Caterpillar awarded MADISA five stars each on the rentals and used equipment categories.

The company is led by Dr. Martín Jorge Dieck, CEO, whose 17-year tenure in MADISA matches his stint at Grupo Vitro. Dieck is an industrial engineer who also earned a PhD in Operations Research and Finance from the University of Texas at Austin (USA). Previously, Dieck was a professor at Tec de Monterrey (ITESM - Monterrey Institute of Technology and Higher Education). His busy agenda has deprived him from teaching, but he’s still an important member of several higher education institutions in the area, including the

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“We’ve developed working solutions for each industry according to its needs; we have a dedicated sales force for each business sector” – Dr. Martín Jorge Dieck, CEO, MADISA

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Apodaca Polytechnic University.

“I enjoy being involved in forums and other education-related subjects. I feel education is the way for Mexico to face any challenge successfully,” Dieck comments.

Support for every industry MADISA is one of two CAT distributors in Latin America able to offer products for every business

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sector serviced from Caterpillar’s portfolio. The staff at each of the company’s locations is comprised of specialised professionals who are experts in the specific requirements and eventualities each in their sector, including farming, construction, property remodelling, oil and gas, energy, steel and foundry, marine, mining, commercial, transportation and others.

L AT I N A M E R I C A

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“We’ve developed working solutions for each industry according to its needs; we have a dedicated sales force for each business sector”, Dieck adds.

Virtual access, real support In 2017 the Parts.CAT.com platform was launched with features that are currently considered as standardsetting, such as responsiveness to

every kind of device. The website offers the entire CAT portfolio for replacement part availability 24/7.

The CAT IP (integrated procurement) programme goes further, interconnecting its e-commerce interface with any client’s ERP. In addition to these new systems, MADISA is also engaging customers through channels like Whatsapp, Facebook Messenger, email and

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its website. Indeed, MADISA has reported online sales of more than $30mn during the last two years.

Multiple financing options MADISA financing plans allow for all organisations, from bigname companies to individual contractors and anyone in between, to purchase either new or used equipment. It’s plans are as follows: • Rebuild financing: This plan makes the most of a CAT product lifetime, which can be extended by procedures such as CCR (Caterpillar Certified Rebuild) and Certified Power Train. Since 2013, 90 rebuild operations have resulted in $20mn of business for MADISA. • CAT Financial Mexico: Caterpillar Crédito is the brand’s specialised unit for financing according to the clients’ needs by offering flexible plans. 56% of Caterpillar heavy machinery purchased from MADISA has been acquired through this plan.

• MADISA Financing: Clients in a growth phase unable to commit to long-term credit schemes may opt for this solution, which starts

from $3,000 financing. More than 1,000 plans within these terms have been set over the last four years.

• ROC (Rent-to-own): This leasing plan is valid both for new and used equipment. When exercising the purchase option, monthly fees add up as a “down payment” on the machinery. This scheme also applies to generators, lifts, compressors and other accessories and attachments of any brand.

After-sale service on a league of its own MADISA’s attractive financing plans also include repairs, replacement parts, maintenance agreements and extended warranties. The whole idea behind these attractive schemes is to help clients make an easier decision into acquiring original replacement parts which are more expensive than the ones offered by other brands, but last twice as long.

Purchasing an EPP (extended protection plan) provided by CAT allows clients to focus on their main activity, without worrying about spending on replacement parts.

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EPPs are available for new, used and refurbished machinery and run beyond standard warranty periods – these plans cover parts, labour costs, and offer protection against currency inflation for these. Protection plans are also transferable along with protected equipment within Mexico and the rest of Latin America.

headquarters in Monterrey. It takes about 24 hours for repair shops in any of the company’s locations to send oil and other fluid samples to the lab to obtain an accurate diagnosis about the equipment’s status, sending clients a necessary alert via email or text if a or part replacement is required immediately.

Top-notch laboratory and repair facilities MADISA’s network of specialised repair shops work together with the laboratory located at MADISA’s

New locations Recent business ventures and infrastructure projects have produced new industry hubs in different parts of the country. These developments prompted MADISA into opening five new locations within these areas.

“Right now, we are determining which of these new locations will be offering parts replacements and which will supply machinery rentals,” Dieck explains.

These hubs are located in Southern Monterrey, another one in the port of Veracruz, one more in Río Bravo (Tamaulipas), Tulum (Quintana Roo, in the Yucatán Peninsula) and in Tula (Hidalgo), where other projects are underway, namely a refinery and a multimodal cargo station.

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“The energy reform will bring important challenges that will ensure our competitive edge. We have the solutions and schemes to create sustainable projects” – Dr. Martín Jorge Dieck, CEO, MADISA

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PROJECTS CONTRIBUTING TO THE COUNTRY’S DEVELOPMENT Either through partnerships or going solo delivering turnkey projects, a constant in MADISA’s lifetime has been contributing to Mexico’s development.

“The energy reform will bring important challenges that will ensure our competitive edge. We have the solutions and schemes to create sustainable projects,” Dieck says.

Some of the most relevant projects in which MADISA has been involved are:

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• RYC FARMS, Tenextepec, Puebla: Power generation from pig manure. The facility belonging to meat giant RYC is powered by a CAT G3306 generator, able to supply electricity to a large part of the farm. MADISA Puebla deployed these resources and is in charge of maintenance operations. A new CAT G3406 generator will be added soon

• ALTOS HORNOS DE MÉXICO: AHMSA is Mexico’s largest steel producer. MADISA contributed with a turnkey project in the Monclova (Coahuila) plants, installing four gas-powered electric plants able to supply 160MW.

• LOS RAMONES GAS PIPELINE (North phase): The Tag Pipelines (part of PEMEX-Gas division and Petroquímica Básica) project’s total length is 621 miles.

MADISA supplied 215 machines for the 270-mile north phase.

• NAICM (New Mexico City International Airport): One of the most ambitious projects in Mexico’s history is already underway. An enormous amount of waste and rubbish is being moved in order to begin operations by 2020. MADISA has supplied Morooka units, built for unsteady terrain, ideal for the Texcoco Lake marshlands.

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ENERGY

Remote monitoring, IoT, drones and apps The most up-to-date technology makes its way to MADISA’s showrooms, and the company offers solutions to make the most out of the latest developments.

Take drones, and MADISA’s software array able to turn images captured by the flying device into a big data set. This provides accurate distance calculations for roads, openings between rocks (mining) and land amounts. The requirement for topographers and project supervision tours for mining and road construction is being brought to a minimum by this technology.

Other software and apps offered

by MADISA include Vision Link, a standard for remote monitoring of

Máquinas Diesel, S.A. de C.V. Year founded:

1946

2,700 Number of employees at Máquinas Diesel, S.A. de C.V.

any equipment, also able to keep track of maintenance and other alerts. Minestar is a mining industry technology able to provide an autopilot when vehicles move into dangerous terrain. iCraneTrax can monitor a large number of units operating simultanously. MADISA also offers apps for precision agriculture and solutions such as Sitech, Fleet Production and Cost Analysis.

Constant training MADISA operates three training centres furnished with simulators.

Both MADISA’s and its clients’ machinery operators take part in training in these facilities with programmes developed by Caterpillar.

Programmes developed by MADISA also consider other subjects besides technical skills, such as customer

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Our Territory

“I perceive an increasing importance in the links between the educational and industrial sectors” – Dr. Martín Jorge Dieck, CEO, MADISA

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service and interpersonal relations, among others. The company has nurtured excellent relationships with area colleges and technical schools such as CONALEP (National School of Technical Vocational Education), as the institution and

MADISA developed a Diesel Technician educational programme. “I perceive an increasing importance in the links between the educational and industrial sectors,� Dieck concludes.

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FROM SUGAR CANE

TO BIOMASS Power generation at Corporaciรณn San Diego adds a layer of sustainability to its traditional duties in the sugar cane market

Written by Mateo Rafael Tablado Produced by Jassen Pintado Interviewee Don Fraterno Vila Girรณn, Presidente de la Junta Directiva de Corporaciรณn San Diego

CORPORACIÓN SAN DIEGO

C

orporación San Diego’s history begins in 1943, when the Vila family acquired the San Diego Sugarcane Mill in Guatemala.

The company grew year-on-year with each harvest’s production and in 1987, the Trinidad mill was sold to the Vilas, becoming the company’s main operation. Seventy percent of San Diego’s sugar production is exported to the US, Canada, Taiwan and parts of Europe, mainly, while the rest is sold in Guatemala to end consumers and companies as well.

San Diego is also, importantly, currently certified under ISO:001, ISO:17025, and ISO:22000 standards.

“We are striving to obtain the Bonsucro certification, which will allow us to export farther into Europe,” adds

INGENIO SAN DIEGO

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Fraterno Vila, President of the Board of Directors at Corporación San Diego.

Energy for the new millennium As the new millennium dawned, Corporación San Diego diversified its operations toward electricity generation from biomass fuel.

San Diego only requires 20MW/h of the 90MW/h generated by its plant, with 50% of the remaining 70MW/h sold by Comercializadora de Energy San Diego (its affiliate for energy marketing) to the domestic spot market. The other half is sold to other industry sectors and clients from small and mid-sized businesses.

In the last 30 months, power output from San Diego increased notably from the 2014-2015 harvest – by 100% and 150%. This resulted from investing in a new 46MW energy block, enabling Corporación San Diego to turn 2014’s 102,000KW into nearly 208,000KW for 2016 and more than 261,000KW during 2017.

“This turned out to become a very important investment, supporting a production increase for each

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“WE ARE STRIVING TO OBTAIN THE BONSUCRO CERTIFICATION, WHICH WILL ALLOW US TO EXPORT FURTHER INTO EUROPE” – Don Fraterno Vila Girón, President of the Board of Directors at Corporación San Diego

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sugarcane tonne,” Vila explains.

Corporación San Diego’s energy division sustains a solid, efficient operation that would undoubtedly benefit from larger investments in the country, along with regulations that would help permit more exports to neighbouring countries such as El Salvador, Honduras and Nicaragua.

Investments in automation and engineering Corporación San Diego’s field operations are already supported

by automated processes, and large sums are also invested in precision engineering.

“More than 70% of a sugarcane factory’s budget is in the fields. There’s where our focus is,” Vila comments.

More than 80% of the sugar factory’s processes are already automated, and the power generation plant is totally automated already.

Estimates for repairs and replacement parts are reviewed yearly along with possible reinforcements in machinery.

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4,943 Number of employees during harvest

IDEAL FOR THE CLARIFICATION PROCESS SPECIAL TYPE HYDRATED LIME FOR SUGAR MILLS High purity (>98%).

High neutralizing power.

Less consumption of lime.

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1,650

Number of employees during the rest of the year

“AFTER THE GROWTH EXPERIENCED BY SAN DIEGO, WE ARE LOOKING FORWARD TO ACHIEVE CONSOLIDATING AND IMPROVING OUR PRODUCTIVITY” – Don Fraterno Vila Girón, President of the Board of Directors at Corporación San Diego Tech imports for Corporación San Diego are usually brought in from Germany, England and Japan.

Focusing on safety The company’s Japanese vendors supply more than machinery and services able to optimise management of the power generation division.

Key suppliers from Japan send specialised personnel to the plant once or twice a year to help San Diego’s staff complete demanding training programmes. The energy plant is secured with temperature sensors and anti-inflammatory systems, and surveillance duties rely on a CCTV system. Improvements

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are staged according to assigned budget after each harvest season.

“We have a complete protection and investment plan to help us take care of every detail in the factory,” Vila explains.

Human resource management Harvesting demands at Corporación San Diego require the company to take on 4,943 employees, although repairs season reduces this number to 1,650. San Diego establishes different talent development programmes to

reduce turnover rates and invests in training for employees in every level.

The company also contributes to personnel opting to attend college and, when operations require certain positions to develop certain skills, helps with this development of expertise.

Social programmes San Diego’s “Feria de la Salud” (health fair) is a yearly event organised to provide medical care to the company’s employees, their families and neighbouring communities. The company’s suppliers and key partners also take part in bringing in doctors and other health specialists, providing dental check-ups and vaccines.

Bringing continuum to its bonds with neighbouring communities, the company created the San Diego Foundation which delivers the “Better Families” programme, providing health and educational support.

A desire for change The energy division at Corporación San Diego is still subject to regulatory laws which must be updated

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to encourage investment, and thus, demand for electric power, besides being able to increase transactions within the Central American electricity market.

The Mercado Eléctrico Regional (regional electrical power market) needs to change in order for Central American countries to make the most from their infrastructure and be able to adequately cover their populations’ needs.

“After the growth experienced by San Diego, we are looking forward to achieving consolidation and improving our productivity while complying with quality standards to satisfy the markets we cater to,” concludes Vila.

Founded in

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