www.energydigital.com
February 2015
The rise of
YORKSHIRE WATER TOP 10 Offshore Wind Farms MANAGING CRISIS: When the lights turn off Incredible SOLAR PANEL & WIND TURBINE Design
EDITOR’S COMMENT
Editor’s Letter for February A L L G O O D T H I N G S M U S T come to an end,
I suppose. This will be my last issue of Energy Digital that I’ll be at the helm for. It’s been quite the ride and an experience I’ll not soon forget. But hey—enough of that. Let’s talk energy. This month’s issue is stacked with rad stuff. Our big feature this month is on some of the most innovative solar panel and wind turbine design around. From NASA’s origamiinspired panels to Google-owned startup Makani’s flying turbine, our issue’s got it all. We’ll also dive into the difficult world of managing blackouts. How should utilities respond in this time of crisis? We’ll also travel to South Africa to see how blackouts are causing quite the ruckus. Finally, we’ll take a trip across the Atlantic to check out the top offshore wind farms in the world. Spoilers: Europe is killing it in offshore wind. That wraps it up for my era of Energy Digital. It’s been a great time and I’ll certainly miss bringing you the coolest energy-related content.
Enjoy the issue! Kevin Smead Editor kevin.smead@wdmgroup.com 3
Big landscapes Inspire big thinking
THERE’S NOTHING LIKE AUSTRALIA FOR YOUR NEXT BUSINESS EVENT. This year we chose Australia for our global congress. It was an easy choice, as Australia’s proximity to Asia gave us the opportunity to attract many new delegates. The program was one of the best in years. New Australian developments in our field attracted a lot of interest and strong international research partnerships were established. Australia is on everyone’s list to visit, and it lured our highest number of delegates yet. There’s no doubt they’ll be talking about this convention for years to come. Dr Louise Wong, International Board Member
visit australia.com/businessevents/associations for everything you need to plan your australian event.
CONTENTS
Features UTILITIES
Blacked Out: Managing crisis when the lights turn off
8 TOP 10 OFFSHORE Wind Farms
14 CLEANTECH Origami & More:
Incredible Solar Panel & Wind Turbine Design
24 5
CONTENTS
94
Usina Pitangueira
38
Yorkshire Water
COMPANY PROFILES EUROPE 38 Yorkshire Water
120 64
DESENVIX
Symbion Power
86
Titan Marine Engineering
AFRICA 64 Symbion Power
AUSTRALIA 86 Titan Marine Engineering
BRAZIL 94 USINA PITANGUEIRA 104 JMALUCELLI 114 Association: COGEN 120 DESENVIX 7
UTILITIES
BLACKE
MANAGING CRISIS WHEN
Managing blackouts can be a difficult proposition f some great tips to keeping things calm—and why it UNFORTUNATELY, BLACKOUTS ARE reality for modern utilities. They can happen at any time, and at any scale. The key to making it through a blackout is being prepared and having a successful strategy in place for managing the risks and troubles associated with blackouts. 8
February 2015
For this article, we’ll break down what utilities can do to better manage blackouts, regardless of location. Then, we’ll look at a specific region (South America) and how blackouts could potentially derail its economy. By the end, you’ll have an understanding of not only how to better manage
ED OUT:
N THE LIGHTS TURN OFF
for utilities. We explain t’s so important you do. blackouts, but also why it’s so important we do so effectively. Understand Where the Risks Are For major blackouts, the first thing to manage is the risk and be proactive when it comes to preventing them.
Written by: KEVIN SMEAD
German insurance agency Allianz defines some of the causes of blackouts as increased demand for the grid, aging infrastructure, severe weather events, and other factors that may be beyond control. The important part is ensuring things that are within your control are taken care of and 9
UTILITIES those that are beyond are planned for. Also important is the fact that as everything gets more interconnected, the risk increases. “The vulnerability of the power supply industry, the industrial and commercial companies and the public and private sector is high due to the interconnectedness and dependency of all areas on Information and Communication Technology (ICT), navigational systems and other electronic devices.” Know There is No Perfect Solution As Allianz points out, many utilities are turning to renewable energy to help better manage blackouts, though this isn’t always going to work out. As Allianz notes, renewable energy still has its drawbacks when it comes to managing blackouts. “A downside of renewable energy particularly, wind and solar technologies, is the volatile supply of power,” the company writes. “Not only may a scarcity of electricity result in a power blackout, but an oversupply can also lead to grid instabilities as they alter the frequency within the network.” So, while renewables may be part of 10
February 2015
Utilities need to have a strategy in pla a blackout while it dispatches crews t
‘For major blackouts, the first thing to manage is the risk and be proactive when it comes to preventing them’
ace to manage to fix the issue
MANAGING CRISIS WHEN THE LIGHTS TURN OFF
a solution, even they have their issues. Have a Way to Get the Word Out An important part of any blackout is communication. For utilities, this is key. Customers need to be updated on what’s going on and any form of communication is important. In largescale blackout scenarios, panic can set in quickly if the customer base remains uninformed. Public radio is a great way for utilities to ensure their customers know what’s going on, since public broadcasting is generally well-equipped to weather a blackout and an emergency radio is standard in many households. Also, car radios are widely available. These techniques will help utilities better manage in a time of crisis. For some countries, blackouts are a major destructive force. What if, however, these blackouts on were on purpose? How would you manage them then? For the answer, we turn to South America. South Africa Blackouts come in varying degrees of bad. For South Africa, blackouts present a massive issue that the country has yet to solve. The thing is, these blackouts aren’t the 11
UTILITIES result of a catastrophic grid failure, but actually managed by Eskom Holdings, a state-owned utility. The grid can’t handle peak electricity usage, and Eskom has repeatedly asked consumers, both residential and commercial, to cut down on usage during this time. For industrial consumers, this could mean reduced production and decreased profits. When consumers don’t comply, Eskom runs managed blackouts to keep the grid stable. As Bloomberg’s Paul Burkhart points
out, Eskom just can’t keep up. “The state-owned utility can’t provide reliable electricity to run Africa’s second-largest economy,” he writes. “It has a long-term plan to expand generating capacity by more than 40 percent, while facing a 225 billion-rand ($20 billion) funding shortfall through 2018. The company has faced supply shortages for years and has said it may be another five years before it can guarantee the lights will always be on.” Eskom argues that these blackouts are necessary to keep the grid
Blackouts are a major problem in South Africa, even though they’re not always un
MANAGING CRISIS WHEN THE LIGHTS TURN OFF
from completely collapsing. “If South Africa experienced a complete blackout, it would take us two weeks to restart the system,” Dr. Steve Lennon, sustainability executive for Eskon. “The consequences would be severe across the entire country and in every sector.” So, what would that mean for South Africa’s economy? To put it plainly: not great things. As previously stated, blackouts can derail industry production. On
nexpected
‘Under the direction of a new CEO, Eskom is looking to increase its capacity through new plants and upgraded infrastructure.’
top of that, it also can drive industry from the region, as skepticism could cause businesses to think twice before moving in. This effectively halts any economic growth in the region. “Eskom is in dire straits,” Teneo Intelligence’s southern Africa risk analyst Anne Fruhauf said. “South Africa cannot dream of reaching a higher-growth path without an increase in baseload capacity.” As Eskom provides more than 95% of the country’s electricity, it’s very aware of the issue. “Eskom is committed to keeping the lights on whilst at the same time maintaining a sound basis for sustainable operations,” the company told Burkhart in an email. Under the direction of a new CEO, Eskom is looking to increase its capacity through new plants and upgraded infrastructure. However, these efforts have been marred by setbacks and construction delays. There is certainly support behind the company, as failure simply isn’t an option. “It has to succeed,” Eskom’s former CEO Jacob Maroga told Burkhart. “It’s the heartbeat of the economy.”
13
CLEAN TECH
ORIGAMI & MORE: Incredible Solar Panel & Wind Turbine Design With a plethora of innovative solar panel and turbine designs arriving daily, we look at five of our favorites. Written by: KEVIN SMEAD
15
CLEAN TECH SOLAR PANELS AND wind turbines are perhaps the two most iconic images that come to mind when thinking about renewable energy. That image, however, is changing. New and innovative panel designs are being presented–almost daily it would seem–that could change the way we approach deploying renewable infrastructure. From invisible solar panels to flying wind turbines, here are some we think are particularly innovative. NASA’s Origami Panel Origami isn’t just for paper anymore. Engineers at NASA’s Jet Propulsion Laboratory have created foldable solar panels inspired by the art of Japanese paper folding. NASA’s Brian Trease, a mechanical When folded, NASA’s panel looks like a flower
16
February 2015
engineer, studied abroad in Japan and was initially exposed to the art of origami. From then on, he was hooked. “I’d be folding subway ticket stubs, baseball game lineups; there’s a picture of me in McDonalds in the city of Kobe holding a big origami crane that I had just folded [out of a hamburger wrapper],” he recalls to Wired. “Now it’s come full circle—I’m doing this as my career.” Origami seemed to be an excellent solution to one of the biggest challenges NASA faces: how do you make bulky objects needed for space flight light and compact enough to transport? Several years ago, NASA began exploring different ways solar panels could be made more compact. Now, the solution looks to be as simple as folding them. The project is now a joint collaboration between some unusual partners: engineers at NASA’s JPL, students at Brigham Young University and origami master Robert Lang. The team has developed a prototype 1 cm thick solar array that has the capability to expand from 8.9 feet in diameter to 82 feet. The material for the panel is called “hannaflex” by the
HEADLINE
When unfoled, the panel has a hexagonal shape. researchers at the JPL. It starts out in a flower-shaped form and folds out into a hexagonal shape. “This is just begging to be deployed with centrifugal force,” Trease said. “We could have it on spacecraft where we just spin it and that force allows the panels to deploy out to their position.” Naturally, there is much work to be done on the panel, but the team is taking the concept very seriously. Trease explained that different
materials needed to be stress tested and they need to find a way to quickly and effectively unfold the panel. As cool as the panel may look, its artistic shape is truly beneficial to the future of space flight. “The public has to know it’s more than just paper folding, it’s more than just this children’s art or something you do in school,” Trease said. “There’s a lot of artistic expertise in understanding 17
CLEAN TECH
Transparent solar panels could fit into places such as windows or glass buildings. the folds, but it’s heavily backed up by math and engineering.” Transparent Solar Panels Scientists at Michigan State University have created a solar panel that’s completely transparent, essentially looking like a pane of glass. Efforts to create similar panels have been explored before, but to lesser degrees of success. The plastic was colored, similar to stained glass, and highly inefficient. The coloration also limited the usability of the plastic panels. 18
February 2015
“No one wants to sit behind colored glass,” Richard Lunt, an assistant professor of chemical engineering and materials science, said. “It makes for a very colorful environment, like working in a disco. We take an approach where we actually make the luminescent active layer itself transparent.” The system uses small organic molecules that absorb specific nonvisible wavelengths of sunlight. “We can tune these materials to pick up just the ultraviolet and the near infrared wavelengths that then ‘glow’
MANAGING CRISIS WHEN THE LIGHTS TURN OFF
at another wavelength in the infrared,” Lunt said. “Because the materials do not absorb or emit light in the visible spectrum, they look exceptionally transparent to the human eye.” The new material opens up a host of new possibilities for solar panels, allowing them to be better integrated and more prevalent. “It opens a lot of area to deploy solar energy in a non-intrusive way,” Lunt said. “It can be used on tall buildings with lots of windows or any kind of mobile device that demands high aesthetic quality like a phone or e-reader. Ultimately we want to make solar harvesting surfaces that you do not even know are there.” The team is currently working on improving the efficiency of the panels.
‘CSEM is providing a blank slate can be easily integrated into almost any building design, making going solar easier than ever’
Panels of Every Color Scientists at the Swiss Center for Electronics and Microtechnology have developed solar panels of various colors, including white, which can be integrated into a variety of settings. With better integration into buildings as its mission, the panels can be installed with minimal impact to space and aesthetic. The white panels are particularly important, as the lack of color allows the panels to run cooler and with better efficiency. The various colors available allow for greater versatility in visual design. With the white panels, there is a common misconception that its reflective nature makes it a bad choice for panel design, though CSEM has solved that issue with its panels.
CSEM’s panels come in a variety of colors, but the white is notable for its ability to run cooler and more efficiently.
19
CLEAN TECH “It combines a solar cell technology able to convert infrared solar light into electricity and a selective scattering filter, which scatters the whole visible spectrum while transmitting infrared light,” CSEM explains. “Any solar technology based on crystalline silicon can now be used to manufacture white—and colored—modules.” The ability to change the panel’s color is also important from a design standpoint. CSEM is providing a blank slate can be easily integrated into almost any building design, making going solar easier than ever. “Our revolutionary technology lets us achieve what was supposed to be impossible: white and colored solar panels with no visible cells or connections,” CSEM said. “It can be applied on top of an existing module or integrated into a new module during
‘For island nations, space is critical as there’s a pretty limited amount and it’s generally used for necessities such as agriculture’ 20
February 2015
assembly, on flat or curved surfaces. We can change the color of all existing panels or create customized looks from scratch. Solar panels can now disappear; they become virtually hidden energy sources.” It’s a Bird! It’s a Plane! It’s… a Wind Turbine? A major issue when it comes to renewable energy is space. For island nations, space is critical as there’s a pretty limited amount and it’s generally used for necessities such as agriculture. So, when one looks at a place such as the Hawaiian Islands, it’s difficult to find where a major solar or wind farm could fit in. Makani, a Google-owned startup, is looking to solve this problem via its flying wind turbines. The company, which is part of the Google X division, is working in Hawaii specifically to develop the turbine as it hopes it will lead to greater renewable energy utilization and reduced cost. Makani is known for designing and developing lightweight kites that can harness wind energy from a high altitude. The concept is both similar and different to offshore wind or solar farms. While the ultimate
Makani’s turbine flies about 1,000 ft. off the ground.
goal is the same, the methodology couldn’t be more different. The project is taking place in a small plot of land on the Big Island just south of Waimea. Smaller prototypes of the wind kite have already been tested, though none of them match the size of the current one. UK Sales Director for Google Peter Fitzgerald said the costs of renewable energy could be reduced because the turbines don’t require poles like traditional ones would. “You have to spend a lot of money on steel and concrete to build these massive turbines and you
can only do that in about 15 per cent of the world where the wind is fast enough,” he said, adding that the new tethered turbines would get around these restrictions. The kite flies about 1,000 ft. off the ground and has the generation potential to power 300 homes. Print Your Own Turbine With accessibility a large part of the design of these panels and turbines, 3D printing seems like a logical direction for the industry to head towards. Omni3D has developed a printable wind turbine that can be used on a 21
CLEAN TECH small scale in the form of an alternative generator. The turbine, called AirEnergy3D, is quite the revolution in terms of accessible renewable energy. The device can supposedly power something like a laptop or several smaller electronic devices. It could also be used in rural communities and places like India, where energy accessibility is still a difficult proposition. It could also be used for remote recreational purposes, such as camping or other outdoor activities. Solar has been filling this void, but this 3D printing tech could drastically change that. While wind energy has
been mostly relegated to large-scale installations, this could bring wind down to a more consumer-friendly level. Of course, with the further expansion of 3D printing, largerscale potential certainly exists. Also interesting is the device’s open-source nature. Those with 3D printing technology and access to the internet could theoretically print their own turbine. However, the turbine isn’t completely 3D printable. Omni3D provides those who purchase the turbine a basic kit that is comprised of parts that aren’t printable. Still, most parts can
‘Omni3D has developed a printable wind turbine that can be used on a small scale in the form of an alternative generator’
MANAGING CRISIS WHEN THE LIGHTS TURN OFF
Omni 3D’s turbine being printed. be replaced by 3D printed parts. So, what are the specifics of the turbine? According to the company’s Kickstarter, the turbine has a generating capacity of 300 W and is extremely durable. They also promote the turbine as useful for storing power. Omni3D is also planning to ship a turbine to Africa for every £2,500 pledged to the Kickstarter campaign. They also want the turbine to be easily replicated. “We want to influence people, how they think about electricity and the environment,” the company writes. “If we really want a change to
happen, we know we can’t keep the solutions to ourselves so we decided to make AirEnergy3D open source.” Omni3D claims the device is easy to assemble—supposedly comparable to constructing a Lego kit. It also has a USB port, so you can plug your phone directly into the turbine. The team is also working on a mounting system in which the turbine can be mounted on various services. Omni3D is also weatherproofing the system and making the device safe. They’ve already made their Kickstarter backing goal and hope to launch the product in March.
23
TOP 10
Offshore WIND FARMS Wind farms are a major undertaking that use up a lot of space. Sometimes, offshore wind is the solution. We look at the top 10 offshore wind farms by sheer generating capacity. Written by: Kevin Smead
25
TOP 10
10
LICONSHIRE United Kingdom MW: 270
Located off the east coast of England, the Lincs Wind Farm is a £1 billion wind farm owned by Centrica, DONG Energy, and Siemens. The project began in 2004, though was only completed in 2013. A notable inclusion in the project is the extensive underground cable system that runs electricity back to land. This comprised 25 percent of the project’s cost and will outlast the 40 year lifespan of the project itself.
The Lincs offshore wind farm is a £1 billion project with 25 percent of the cost going toward undersea cables connecting the farm to land
26
February 2015
O F F S H O R E W I N D FA R M S
Meerwind is one of the first offshore wind projects in Germany.
(Photo credit Frank Bohlmann, Sikla GmbH)
09
MEERWIND SĂœD/OST Germany MW:Â 288
The Meerwind wind farms are two separate wind farms (south and east) located in the German Bright of the North Sea. The farms only opened in September of last year and are owned by WindMW. The location of the project is particularly notable for its location, which boats a stellar combination of strong winds a convenient water depth. The farm also uses the nearby island of Helgoland as its maintenance base. 27
TOP 10
08
THANET United Kingdom MW:Â 300
The Thanet wind farm is off the southeastern cost of Kent in the U.K. When it was completed in 2010, it was set to be the largest operational wind farm in the world. Judging as how it’s now number eight on the list, that is no longer the case. Still, the Thanet project uses state-of-the-art Vestas turbines and is owned by Vattenfall.
28
February 2015
O F F S H O R E W I N D FA R M S
07
SHERINGHAM SHOAL United Kingdom MW: 317
If you haven’t figured it out by now, the U.K. is a major world leader in offshore wind energy and Sheringham Shoal is one of the country’s most iconic projects. The turbines are huge—so big, a double-decker bus could drive through one. Ownership of the project is split 50-50 between Statoil and Statkraft. The estimated actual output of the project is around 125 MW, which is sufficient to power approximately 220,000 average UK homes, more than twice the equivalent electricity required to supply the whole of the North Norfolk coast.
Though it’s no larger the largest wind farm in the country, Sheringham Shoal is one of the most iconic in the U.K. (Photo credit Harald Pettersen, Statoil)
29
TOP 10
06
THORNTONBANK Belgium MW:Â 325
Stationed off the north coast of Belgium, this farm recently reached its maximum planned capacity of 325 MW. The project was completed in three phases, with the most recently being finished in September of 2013. It currently has 54 operational units and cost an estimated ÂŁ1.3 billion to complete. It was designed to have a minimum environmental impact to both sea life and shipping routes.
The bases of the Thortonbank wind farm under construction. (Photo credit Hans Hillewaert)
30
February 2015
O F F S H O R E W I N D FA R M S
The Walney wind farm is located in the Irish Sea.
(Photo credit David Dixon)
05
WALNEY United Kingdom MW:Â 367
Located in the Irish Sea, the Walney Wind Farm is in a little shallower waters than some of the others on this list in only 19-23m waters. The project is a partnership between DONG Energy and Scottish and Southern Energy. DONG was awarded a 50-year lease for the project and completed the construction in two phases. The wind warm saw a small crisis earlier this year when a dive vessel crashed into one of the turbines and spilled a small amount of oil into a sea. 31
TOP 10
04
BARD OFFSHORE 1 Germany MW:Â 400
The BARD Offshore 1 wind farm is also relatively new, as it was only completed in September of 2013. Owned by Enovos, the farm sits off the north coast of Germany. The project is noteworthy for its use of the Wind Lift 1 barge during its construction, which placed the massive, 470 ton, 21 meter foundations into the seabed. The Wind Lift 1 was a crucial part of the installation of the BARD wind farm. (Photo credit BARD)
32
February 2015
O F F S H O R E W I N D FA R M S
The Anholt wind farm has an unusal placement for its turbines that allow it great efficiency. (Photo credit Katrin Scheib)
03
ANHOLT Denmark MW: 400
The largest offshore wind farm in Denmark, Anholt was also only completed in September of 2013. A project of DONG Energy, the wind farm cost roughly 10 billion Danish kroner to build. This project is unique in its placement of the Siemens turbines. Usually, turbines are placed in a grid pattern of lines and rows, though that’s not the case with Anholt. The turbines placed in an unusual pattern, governed by two principles: put most of them along the edges, and put most in undisturbed airflow from the main direction, which is West-southwest—increasing production by 1.5%, a lifetime value of more than 100m Danish kroner. 33
TOP 10
02
GREATER GABBARD United Kingdom MW:Â 504
The Greater Gabbard wind farm started out as a project between Airtricity and Fluor, though through mergers, acquisitions and other moves, it is currently owned by Scottish and Southern Energy. It was finished in 2012, though there is ongoing work on the underwater cables for the project. The project will also undergo expansion, adding 140 turbines by 2017. 34
February 2015
O F F S H O R E W I N D FA R M S
The Greater Gabbard wind farm, as seen from the window of a jet. (Photo credit Ziko van Dijk)
35
TOP 10
36
February 2015
O F F S H O R E W I N D FA R M S
01
LONDON ARRAY United Kingdom MW: 630
The London Array is the king of the offshore wind farm. The project has multiple owners and has seen a huge investment of £1.8 billion. Located near the southwest coast of England, the project is a sight to behold. The array is intended to reduce annual CO2 emissions by roughly 900,000 tons—equal to the emissions of 300,000 passenger cars.
The London Array, the world’s largest offshore wind farm, is quite the spectacle.
(Photo credit DONG Energy)
37
Yorkshire Water
set to invest ÂŁ3.8 billion to remain industry innovators The UK utility company has laid down plans to inject significant funds into various water supply, environmental and sewer flooding improvements Written by: Sam Jermy Produced by: Richard Thomas
Y O R K S H I R E WAT E R
Yorkshire Water has announced it will invest £3.8 billion over the next five years to remain at the forefront of industry innovation.
S
et out in the company’s next business plan leading up to 2020, it will make capital investments which include £50m for water supplies, £180 million to improve the quality of Yorkshire’s inland waterways, as well as £220 million to tackle issues such as climate change and population growth. It is a significant commitment for the firm, which serves 5.3 million customers in the Yorkshire region through 33,000 kilometres of clean water network and 60,000 kilometres of waste network. These customers are well served by a 2,400 strong workforce who help treat a mammoth 1.24 billion litres of clean water every day, while
A Yorkshire Water Network Performance Engineer analyses a pumping station
EUROPE
Scarborough Toll House site
at the same time one billion litres of waste water is collected, treated and disposed of. Privatised with the entire English and Welsh water industry in 1989, Yorkshire Water is now part of the Kelda Group which is made up of a number of infrastructure funds including CitiGroup, GIC and Deutsche Bank. Simon Barnes, Director of Business Support at Yorkshire Water, said: “We have an ideology about customer-centricity where everything starts with the customer. Their needs are our priority and we works backwards from there. According to the UK Customer Service Index we are currently the top customer service provider in the utility sector. Our vision is ‘taking responsibility for the water environment for good’, and we have underpinned that vision with six strategic business objectives looking out over 25 years. “We developed those business objectives by
33,000km Clean Water Network
60,000km Waste Water Network
w w w. y o r k s h i r e w a t e r. c o m
41
Y O R K S H I R E WAT E R
Key Personnel
Simon Barnes Director of Business Support at Yorkshire Water
“We have an ideology about customercentricity where everything starts with the customer. Their needs are our priority” – Simon Barnes, Director of Business Support at Yorkshire Water
42
February 2015
looking at the 11 externalities we have got coming up in the business, in the water sector and the Yorkshire region. They are underpinned by an ethos of delivering better service at lower cost.” “Our six strategic business objectives are: being a trusted company at a functional and corporate level; making sure everything we do surrounding water is safe from drinking it to walking round our reservoirs and also from a flooding perspective; continuing to be a water-efficient region and managing resources properly despite the growing population; maintaining excellent rivers and coasts in our catchment by thinking of areas like the east coast of Yorkshire and how we play our part in keeping Blue Flag status; making our resources sustainable by utilising the circular economy; and then finally strong financial foundations meaning how do we keep the bills low while remaining an attractive business to invest in that then allows us to borrow money cheaply to enable us to invest in our assets. Barnes cited the 11 externalities as: rising energy costs, rising resource costs, recognising climate change, growing population because infrastructure needs to meet demand, growth in households, skills resource and where the company is getting future skills and talent from, recognising and meeting expectations of the diverse customer-base, societal demands that are changing, and the whole affordability and financeability, as well as technological change.
EUROPE
Laying the foundations Yorkshire Water works with the Office for National Statistics in forecasting data, so the organisation is clear on its direction of travel. The disciplined approach is always brought back to the business plan which works on a five year cycle. It currently sits on the cusp of a brand new regulatory period which runs from 2015 to 2020. Through consultation with its customers, the company has built seven desired outcomes that directly feed into the six aforementioned strategic business objectives. These outcomes include providing customers with safe and clean drinking water, ensuring there is enough water, protecting people from the environment and sewer flooding, protecting and continuously improving water supplies, understanding the impact on the environment and providing Delivery of the new Long Sea Outfall Pipe in Bridlington
123m Tall Wind Turbine at Yorkshire Water Knostrop Site - Tallest Structure in Leeds.
Y O R K S H I R E WAT E R
BRETTEX SITE SERVICES
Provide a Full Mechanical and Electrical Service for all Water Utility Sludge Processing Equipment and Ancillary Plant Our in-house staff and maintenance engineers have a wealth of experience in providing best practice solutions to maintenance and process issues within the water industry. • • • • • • • •
24/7 Emergency cover nationwide Bespoke maintenance solutions Process and equipment optimisation Specially designed components manufactured in house Dewatering/thickening rental solutions UK Partner for Bucher Unipektin Full operational & maintenance training packages UK’s largest stock of filtration cloths (available 24/7)
info@brettexsiteservices.com www.brettexsiteservices.com
Tel: 01246 856560 Fax: 01246 856180
ISO 9001 & 14001 OHSAS 18001
44
February 2015
Y O R K S H I R E WAT E R
E N E R G Y D I G I TA L
customers with the expected level of service whilst keeping bills as low as possible. There are a number of business units now collaborating to achieve these objectives. Service Delivery ensures Yorkshire Water is easily contactable and end users receive clean water and can dispose of their waste water safely. Working alongside that business unit is the Asset Management function, which makes sure the assets are fit for purpose and identifies where the company needs to invest. Naturally this unit has played a central role in where the company will be investing ÂŁ3.8 billion in the next five years. The Support Services business unit involves HR, Communications, Health & Safety, Finance & Regulation and the Business Support unit which Barnes spearheads, looking after all the
ÂŁ3.8bn The amount that Yorkshire Water will be investing in the next 5 years.
Angram Dam
w w w. y o r k s h i r e w a t e r. c o m
45
Y Orecommends R K S H Windows. I R E WAT E R Panasonic
BREAKTHROUGH MOBILITY Panasonic Toughbook and Toughpad – the perfect fit for every utilities application Whatever the task, wherever it’s needed, Panasonic has a mobile solution for every aspect of work in the utilities sector. Featuring Intel® Core™ i5 vPro™ Processors, our specialist range includes: • The outdoor performance and connectivity of the FZ-M1 and FZ-G1 Toughpad tablets • The fully rugged durability of the Toughbook CF-19 • The convertible flexibility of the Toughbook CF-C2 • The all-round capabilities of the Toughbook CF-53
Intel, the Intel logo, Intel Core, Intel vPro, Core Inside and vPro Inside are trademarks of Intel Corporation in the U.S. and other countries.
46
February 2015
So when you’re looking for the perfect companion for your mobile engineers, talk to Panasonic for the ideal answer. Call now on 01273 765 114 Visit www.toughbook.eu
Y O R K S H I R E WAT E R
EUROPE
procurement and IT systems, business processes and innovations. Head office is located on the outskirts of Bradford and there are various satellite offices throughout the county. An asset management building in Leeds city centre also hosts Yorkshire Water’s construction partners. Technology and energy Yorkshire Water draws its resource from three sources, split equally between rivers, ground water and upland catchments. This encompasses raw water reservoirs and the planned catchments, treatment works pulling from the aquifers and rivers directly, and then clean service reservoirs where the firm stores the potable water it produces. But this can bring its own challenges to overcome. Barnes said: “We invest extensively from an
SUPPLIER PROFILE
Colleagues at Yorkshire Water Blackburn Meadows Waste Treatment Work
PANASONIC TOUGHBOOK
Toughbook doesn’t just lead the ruggedised PC and tablet market, it defined it. Since our first model launched more than 17 years ago, Toughbook mobile PCs and tablets have created their own niche in the world of mobile technology, redefining the possibilities of access to data and applications in the most challenging of environments. To understand the true benefits of deploying Toughbook-based solutions in your organisation, you need to begin by thinking about the challenges your mobile workers face. And that’s where the Toughbook story begins. Panasonic equips Toughbook mobile PCs and tablets with technology that’s uniquely designed to overcome the access barriers encountered by countless professionals, in many industries, every day. Website: www.toughbook.eu
w w w. y o r k s h i r e w a t e r. c o m
47
Y O R K S H I R E WAT E R
48
February 2015
Y O R K S H I R E WAT E R
EUROPE
innovation perspective. For example, moving water is a very expensive business as it is heavy. To move a tonne of water takes quite a bit of pumping if you are not in a gravity-fed situation. You can imagine we have got quite a significant energy bill due to rising energy costs. The question we are constantly asking ourselves is how do we square the better service and lower cost? “We have been looking at how we can use renewable energy to reduce our exposure to the volatility of the market. Therefore we extended our partnership with npower so half of our future energy needs are met through renewable electricity. The deal was facilitated by RWE Supply and Trading and means Haven Power will supply renewable energy to the region via npower until 2017.
SUPPLIER PROFILE
“We have been looking at how we can use renewable energy to reduce our exposure to the volatility of the market. Therefore we extended our partnership with npower so half of our future energy needs are met through renewable electricity” – Simon Barnes
SABIO
Sabio is the UK’s leading independent contact centre technology specialist, transforming customer contact. With over 15 years’ experience we’re ideally placed to help your organisation meet today’s customer service challenges. Sabio works with world leading organisations to optimise contact centre performance, reduce operational costs and improve customer engagement. As a leading independent contact technology specialist, Sabio identifies and deploys only those technologies that meet that the highest performance standards. As such Sabio has been a Platinium Partner of Avaya for over a decade, a Premier Partner of Verint for over 14 years and supporting Nuance for 10 years.
Website: www.sabio.co.uk
w w w. y o r k s h i r e w a t e r. c o m
49
Y O R K S H I R E WAT E R
CJ Connally Electrical Engineering Services Ltd operate as an electrical, control and instrumentation contractor to all sectors of industry including clean and waste water, process, chemical, engineering, textiles and food. We are NICEIC and CHAS approved contractors, with over 30 years’ experience within the industry. We are based in Huddersfield, West Yorkshire.
Contact us T: 01484 461416 F: 01484 461100 E: info@cjcees.co.uk www.cjcees.co.uk 50
February 2015
Y O R K S H I R E WAT E R
EUROPE
“We do a small amount of hydropower, but getting key assets in the ground for hydro is quite difficult because the pipes aren’t normally near where you need to use the electricity and trying to get the connection right is tricky. We’ve tended to go for a small amount of wind energy but we’re actually looking at how we can start to take the product we receive from our customers and turn that into energy with things like anaerobic digestion. “We build our business plans over five years to co-ordinate where in these different areas we are going to place money; introducing new technologies to the market and innovating is crucially important to us. Sometimes it is proven but sometimes it is technology that isn’t proven anywhere so can entail an element
SUPPLIER PROFILE
Yorkshire Water’s reservoir in Lower Laithe
CJ CONNALLY
The company consists of a team of qualified technicians, electricians and apprentices who are all directly employed by CJ Connally. This provides us with the flexibility to match-up the right size of team for the project in question. This will provide you with instant access to experienced and competent personnel when you need them. The team works to a high specification using quality materials throughout. From large industrial/commercial contracts to small-scale projects, we approach every job with a professional commitment to leave our customers totally satisfied with the work we deliver. Website: www.cjcees.co.uk
w w w. y o r k s h i r e w a t e r. c o m
51
Y O R K S H I R E WAT E R
CROSS THE DIVIDE
What inspires us? What keeps us up at night and makes us bounce out of bed in the morning? It’s finding new ways to help organisations cross the telecoms and tech divide. Taking them from where they are now to where they want to be. But divides are only crossed with strong partnerships. Like the one we’ve built with Yorkshire Water over 10 years. And the one we’ve just begun with Buffalo Grid – turning solar power for mobiles into a utility for developing countries. Wide divides to cross. That started with a single step.
CALL 0800 953 0180
52
February 2015
OR VISIT VIRGINMEDIABUSINESS.CO.UK
Y O R K S H I R E WAT E R
EUROPE
of risk. Consequently we selected Business Modelling Associates for the development of an integrated risk and cost modelling capability on a seven-year contract, because it is all about managing the potential risk” This stance has seen Yorkshire Water begin an anaerobic digestion project that takes the sludge produced from waste water treatment works and put it through a process which has required £12.5 million worth of investment since 2010 to develop. Although the process is still in the development phase, it has the capacity to produce three times the amount of energy for the same amount of capital investment. Barnes added: “That’s involved working with a range of global organisations and by investing that much in one area of technology, it has been one of
SUPPLIER PROFILE
£12m The amount that Yorkshire Water invested in its anaerobic digestion project
VIRGIN MEDIA BUSINESS
At Virgin Media Business we take the time to understand the struggles our customers face, getting to know the daily challenges that their industry brings. We aim to help our customers - working closely with them, and our partners to design solutions to overcome their obstacles and make things simple. Our nationwide fibre optic network is already able to reach 85 per cent of organisations. Carrying 35 per cent of all business broadband traffic to both public services and businesses across the country. We help our customers to connect, consolidate and ultimately transform the way they work, delivering improved service to their own customers now and in the future.
Website: www.virginmediabusiness.co.uk
w w w. y o r k s h i r e w a t e r. c o m
53
Y O R K S H I R E WAT E R
2,400
The number of employees at Yorkshire Water
the biggest innovation projects we have taken on.” Thanks to technological innovation, Yorkshire Water’s carbon footprint continues on a downward trajectory and due to the increased energy produced, it makes the company more efficient allowing it to reinvest those funds elsewhere in the business. Strong employee focus One of the biggest assets Yorkshire Water possesses is its 2,400 employees and the company’s senior management rightfully places the utmost importance on staff wellbeing and advancement. It is something that the business is very passionate about and Barnes personally champions. He said: “We just won the Utility Week award for staff development due to one of our schemes called the Business Support Hotseat Scheme. We opened this up specifically for people who are not currently managers in the organisation, so we are identifying people in the talent pool. “Broadly, it is a scheme where we will give
“We just won the Utility Week award for staff development due to one of our schemes called the Business Support Hotseat Scheme. We opened this up specifically for people who are not currently managers in the organisation” –S imon Barnes. 54
February 2015
XXXXxxxxx
A shot of the BioThelys Tanks at Esholt. Copyright Richard Bird Photography 55
Y O R K S H I R E WAT E R
Proud to be a leading energy solutions provider for the water industry npower and Yorkshire Water have a long term partnership – working together to develop leading-edge energy efficiency solutions.  To find out how we can help your business by challenging convention, get in touch at business@npower.com npower.com/business @npowerbusiness
Mediaworks are proud to be working with Yorkshire Water on their on-going digital communications strategy, helping them to embrace the benefits of online interaction with consumers. By understanding how consumers are finding out about the company and it’s services online,Yorkshire Water are better able to present and convey their customer service excellence as well as their commitment to the wider community. 56
February 2015
Search Engine Optimisation
Paid Search Management
Conversion Rate Optimisation
Online Reputation Management
Y O R K S H I R E WAT E R
EUROPE
them Tuesday mornings to work on solving a problem in the business. There is a maximum of six people on the Hotseat scheme, they get assigned a mentor, and it works in six month periods. As directors of the business we meet every week and any individual on the Hotseat scheme gets the chance to sit in on all the leadership meetings to understand what is going on; then they move on to another department. “They all vote and decide what problem they are going to work on and how. It really is an opportunity to work on something and build their network within the business, getting exposure to people they wouldn’t normally interact with daily. We introduced this in 2013 and are now going through the third Hotseat scheme.” Yorkshire Water also has a robust graduate scheme; some even travelled to Israel in January in conjunction with the respective embassies to work on company performance commitments. The first Hotseat scheme came up with ‘ChemVision’, which was around optimising chemicals and it manifested itself in a £250,000 saving per annum on the procurement practice and interaction surrounding chemicals and chemical companies. The project manager for ChemVision went on to become a full-time project manager in Asset Management. Another participant was able to highlight her skills in value chain engineering when she worked with firms such as Lafarge Tarmac by completing benchmarking
The company is proud of its Hotseat scheme
A Yorkshire Water colleague jetting a sewer in Gargrave
w w w. y o r k s h i r e w a t e r. c o m
57
Y O R K S H I R E WAT E R
Proud to be supporting
with the delivery of their AMP6 Business Plan. MORRISON UTILITY SERVICES. One of the UK’s leading utility service providers.
WRc and Yorkshire Water Innovating Together
WB POWER SERVICES LTD.
POWER GENERATION SPECIALISTS SINCE 1983
WRc discovers and delivers new and exciting solutions that enable our clients to meet the challenges of the future. +44 (0) 1793 865000 www.wrcplc.co.uk
58
February 2015
WB Power Services are widely regarded as specialists in all aspects of power generation. Whether you require a complete turnkey solution, temporary hire or access to our award winning fully comprehensive maintenance contracts. Help is only a phone call away 24 hours a day. 0115 9444422 (24 hour help line) www.wbpsltd.co.uk
Y O R K S H I R E WAT E R
E N E R G Y D I G I TA L
exercises with procurement routes. Barnes said: “What’s great to see is each and every person has either moved on to doing a role they particularly wanted or stayed in their existing role and became more confident and effective in that role. “With regards to staff development, I took 22 individuals away from the business for a week in March last year. On the Monday afternoon I announced I had organised a networking event in Leeds for a number of our suppliers. They had all paid a fee to be there and our CEO, myself and the Director of HR would also be attending and they needed to organise the event themselves. “That created a bit of a crisis for them as we had people from all over the world flying in for this event. But they delivered a fantastic networking event where they made a number of contacts with various businesses from an innovation angle and I was very proud of them. It was a way
Educating the next generation: Schoolchildren learn about the water cycle at Yorkshire Water’s education centre in Headingley
Yorkshire Water launches its biggest apprenticeship scheme at Esholt Hall
w w w. y o r k s h i r e w a t e r. c o m
59
Y O R K S H I R E WAT E R
BRING THE POWER OF THE CROWD TO YOUR BUSINESS The Blue Globe is a boutique innovation consultancy with wide range of clients worldwide. Assisting business with the use of different types of innovation strategies including process to deploy new innovations. Specialising in crowd sourcing and open innovation solutions.
Contact us today to arrange a consultation. +44 203 287 0501 info@theblueglobe.com
Knowledge@detecon:
Support from strategy through to implementation
We make ICT strategies work
60
February 2015
www.detecon.com info@detecon.com
Y O R K S H I R E WAT E R
EUROPE
of saying “how are you going to start engaging your supply chain from a systems, business process and value chain perspective?” “It is a way of galvanising the business to get behind some of the things that we need to do. It is a great way of engaging people within the business but also engaging people from our supply chain.” Bright future The ongoing emphasis at Yorkshire Water is ensuring the four key areas of business processes, systems, procurement and innovation are solidified and locked together. By doing this, the company becomes the main enabler of lower service and better cost and an active member of the circular economy. This is why the company is investing heavily from a systems perspective, and allocating £1.9
£1.9bn The total amount to be invested in Yorkshires water and sewerage systems
Yorkshire Water’s Lower Laithe Reservoir
w w w. y o r k s h i r e w a t e r. c o m
61
Y O R K S H I R E WAT E R
“In the next five years we’re looking to outperform by £500 million of the £3.8 billion that we’re going be investing and that’s why we need to act smart by employing the circular economy thinking”– Simon Barnes.
billion of the total investment towards water and sewerage services. Barnes also explained how the organisation is understanding what its current IT systems and future systems needs to be, and there is some motivation and excitement over the emerging big data and artificial intelligence arena. He said: “In the next five years we’re looking to outperform by £500 million of the £3.8 billion that we’re going be investing and that’s why we need to act smart by employing the circular economy thinking. “We updated a number of waste water treatment works around the region and some of these aggregate-lined tanks at the plant have become redundant and a big liability. At
Aerial view of Esholt Waste Water Treatment in Bradford
62
February 2015
E N E R G Y D I G I TA L
one site we were looking at a £20 million cost to get rid of the aggregate and put it to landfill. “From a sustainable resources and trusted company perspective we are trying to reduce what we send to landfill. Some fairly junior innovation staff from a business process point of view analysed the situation and said they actually think the aggregate can be washed in a way that could then be used back into our capital programme. “So we started partnering with organisations like Lafarge Tarmac who are in the quarrying business. We worked on an innovative project where essentially we were able to turn this £20 million liability into an income stream by developing a technique where the aggregate was removed, cleaned and put back into the building/construction trade. “So we’ve now in effect got a quarry at these sites. The company that won the work is a company called Thompson’s. They are taking the aggregate off site and using it in the construction industry, paying us a fee per tonne but then returning the site back to its former glory. Which then allows us to develop that site for housing or light industrial use, highlighting the whole circular economy.” But Barnes is keen to point out all of this would not be possible without the knowledgesharing and networking events and says really it is about understanding Yorkshire Water’s data and what its business processes currently are and what they need to be in the future.
Company Information INDUSTRY
Public Utilities HEADQUARTERS
Bradford, Yorkshire, UK FOUNDED
1989 EMPLOYEES
2,400 REVENUE
£980 million PRODUCTS/ SERVICES
Providing and maintaining water services for domestic and business customers
w w w. y o r k s h i r e w a t e r. c o m
63
SYMBION POWER
ENERGIZING
AFRICA
Written by: Abigail Phillips Produced by: Anthony Munatswa
65
SYMBION POWER
S Symbion has extensive transmission and distribution experience
66
February 2015
ymbion Power is an international power developer that takes a unique approach to delivering electrical infrastructure projects. With a deep commitment to empowering local communities, the company takes great pride in possessing the knowledge and operational know-how to succeed in some of the world’s most challenging construction environments. Founded in 2005 by Paul Hinks and Lord Richard Westbury, Symbion’s first project was in Iraq. Hinks had been working in the region for two years as a consultant when many American corporations were leaving the country due to the security risks associated with the conflict there. “Many large American
Photocredit: Sala Lewis, Verve Photography for Symbion Power
120 MW Symbion Power Plant, Ubungo near Dar Es Salaam, Tanzania
companies were hightailing it out of the region due to escalating security issues, making business extremely difficult,” explains Hinks. During his time as a consultant, before starting Symbion, Hinks had successfully completed six large transmission contracts in Iraq. He had developed ‘a formula’ for working under such difficult security conditions. “When the big companies started leaving I saw a gap in the market so I established a business that combined engineering and security,” he says. The business was built on a foundation of partnership and cooperation and sought to conduct business by working with and improving the lives of local communities. Even its name – a derivative of the
Symbion Power Symbion Power is a U.S. Independent Power Producer and Engineering Contractor based in Washington, D.C. and has extensive experience working in a highly diverse range of challenging environments from across the African continent to war torn locations including Iraq and Afghanistan.
w w w. s y m b i o n - p o w e r. c o m
67
Chelsea Group combines security, power engineering, construction, strategic consultancy and managed services companies. We have been operating for over 15 years and have a proven record of delivering a range of high-end services and products across the Private and Public sectors as well as NGOs. With experience throughout the globe, we employ 8,000 people in over 50 offices across 48 countries;18 in Africa where we have established our first office in 2001. Our in-depth knowledge ranges across the Middle East, Africa, South America and the major international shipping routes.
T: +971 4 43 60 300 E: info@chelseagroupworldwide.com
CTG Global
www.ctgglobal.com CTG Global (CTG) was established in 2004. CTG is a Managed Services Company specializing in Project Management, Human Resources and Crisis Support services in fragile, conflict affected countries. Our global headquarters in Dubai and Africa headquarters in Nairobi serve clients across 23 countries in Africa, Central Asia and the Middle East. CTG’s clients include: Humanitarian Aid and Development agencies; governments; and commercial organisations.
Hart International
www.hartinternational.com Hart is an international security and risk mitigation company delivering innovative, integrated security solutions. Hart provides 15 years of experience in land and maritime security in locations throughout North Asia, the Middle East and Africa where it continues to focus on its development with operations in still growing markets such as Somalia, Kenya and Mozambique.
Erinys Iraq
www.erinysiraq.com Erinys Iraq is a risk management and security services company specialising in complex and high-threat risk mitigation services in Iraq. Since it was founded in 2003, Erinys Iraq has provided high-level and professional security services throughout Iraq to a wide-range of commercial clients and government agencies. These include the oil and gas industry, foreign embassies, NGOs, Iraqi government ministries and commercial enterprises. It enjoys a winning combination of local and international partnership.
Longport Security
www.longportsecurity.com Longport is recognized as a leading aviation security and services company in Latin America and the Caribbean by clients as well as local and federal authorities. With over 17 years of experience, we serve 20 major US, European and local carriers in 14 countries and count the largest five carriers as our clients. Longport currently operates in over 25 international airports in the region and employs over 1,500 people. Longport is also looking at expanding its operations in Africa in early 2015.
Symbion Power
www.symbion-power.com Symbion is a member of the Chelsea Group of companies.
Enigma Alliance
Enigma Alliance is the global strategic consultancy arm of the Chelsea Group and caters to elite and prestigious clients only. The Enigma team brings together an in-depth understanding of security threats with comprehensive international analysis with world-class capability in a range of key security disciplines and industry knowledge along with international engagement strategies / analysis for NGO’s, government and business entities.
NapCap
Chelsea Group’s latest edition NapCap provides world-class portable housing in 40-foot containers that are innovative in design, comfortable, safe, energy efficient and adaptable in many variants for the customer. Chelsea project to watch CTG and NapCap have teamed up to build a secure and comfortable compound in Somalia. Chelsea Village, currently under construction, is located directly adjacent to the new Mogadishu International Airport terminal and will offer safe, clean and comfortable accommodation for some 200 guests - minutes’ drive to the UN, the UK Embassy and other missions. The facility is expected to take its first guests in mid-2015.
SYMBION POWER
A section of the 400kV Baiji-Al Qaim transmission line
word symbiosis – reflects the basis of the relationship it strives to develop with suppliers, local partners and subcontractors. A winning formula Despite the volatile situation in Iraq, Symbion began bidding for contracts in some of the areas most affected by the conflict. As a company, Symbion’s aim was to build electricity infrastructure that was so desperately needed by working with the government, businesses and people on the ground. “All of a sudden we found ourselves in a fairly significant position in Iraq.
70
February 2015
AFRICA
Stringing the 400kV Baiji - Al Qaim transmission line
We had been contracted to build some of the most difficult projects that had been left behind by other major companies,” Hinks explains. One of the projects taken on by Symbion was a 400-kilovolt transmission line that ran from Baiji to Haditha and then to Al Qaim on the Syrian border, through Al Anbar Province, which today is occupied by the Islamic State, otherwise known as ISIS. In order to successfully complete the work, Hinks partnered with local tribesmen and made agreements with Sheiks. “They supplied us with the resources we needed to complete the project including the labour, materials and
“We had been contracted to build some of the most difficult projects that had been left behind by other major companies.” – P aul Hinks, CEO Symbion Power
w w w. s y m b i o n - p o w e r. c o m
71
> Corporate and Investment Banking
BEHIND EVERY GREAT SUCCESS IS A SUCCESSFUL PARTNERSHIP. At Standard Bank, we do not believe in being just a service provider. We believe in getting intimately involved in your business. We believe in commitment and partnership and putting in endless effort to help you get where you want to be. Because the closer we work together, the more we can all move forward.
They call it Africa. We call it home. www.standardbank.com/cib
Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 152708.
Wiggin and Dana is proud to provide legal services to Symbion Power LLC in Africa and throughout the world We represent clients throughout the United States, Europe, South America, Africa and Asia on a wide range of sophisticated and complex matters. As we have grown, our focus on excellence and client service remains our core value. Founded in 1934, we are proud that many of our clients have been with us for decades.
For more information about the law firm of Wiggin and dana, please contact scott greathead at 212.551.2615 or sgreathead@wiggin.com At t o r n e y A d v e r t i s i n g
CONNECTICUT I NEW YORK I PHILADELPHIA
w w w. w i g g i n . c o m
SYMBION POWER
AFRICA
equipment,” says Hinks. “We trained local recruits at a purpose-built engineering school, which was very positively received. This helped us form a bond with the community and it enabled the successful completion of the project.” Symbion worked in Iraq from 2005 to 2010 where it executed nine large-scale power contracts. “Our work in Iraq truly formed a foundation for our entire business,” says Hinks. “During that time, we were the only American company working in Al Anbar province and in Sadr City, Baghdad and as such we built a strong relationship with our client, the U.S. government.”
“Our work in Iraq truly formed a foundation for our entire business.” – P aul Hinks, CEO Symbion Power
110kV Switchyard in Kabul, Afghanistan
w w w. s y m b i o n - p o w e r. c o m
73
SYMBION POWER
Symbion’s staff are trained to an international standard
74
February 2015
A steep learning curve Due to the success of the business in Iraq, the company expanded its operations to Afghanistan. Symbion was the winner of three contracts in the region, one of which was as a sub-contractor for a major American construction joint venture. Aiming to replicate the success of its operation in Iraq, Hinks and Symbion formed a professional partnership with the highly regarded Idaho-based Northwest Lineman College to offer a comprehensive training program to its local Afghan employees. The experience in Afghanistan was a very steep
AFRICA
Paul Hinks CEO Symbion Power
learning curve for Hinks. Despite the resounding success of the Northwest Lineman College partnership, Symbion faced extraordinary challenges associated with working as a fixedprice subcontractor to a large American JV, which had an expensive cost plus contract with the U.S. government. While Symbion exceeded all expectations in managing a major power construction project in one of the world’s most hostile and corrupt environments -- on Transparency International’s World Corruption Index of 174 countries, Afghanistan shares last place with North Korea and Somalia as the most corrupt -- the company faced obstacles that
Founder and Chief Executive Officer of Symbion Power, LLC, Paul Hinks is the driving force behind the company. He has spent his life in the power industry where he has been responsible for the construction of power plants, transmission lines and substations. His career spans 30 years and in that period, he has worked in the USA, Africa, the Middle East and Asia.
w w w. s y m b i o n - p o w e r. c o m
75
President Obama speaks at the Symbion Power Plant, Tanzania
“Of course, like any organization we have to make money, but we also want to do good.” – P aul Hinks, CEO Symbion Power
76
February 2015
would have destroyed many businesses. But with the support of its majority owners, it came out the other side stronger and wiser. “Of course, like any organization we have to make money, but we also want to do good. We achieved this in Iraq and proved at the same time we could build critical infrastructure in very difficult circumstances. In Afghanistan, I saw first-hand what can happen when bringing employment, skills and new capacities to less developed countries is made impossible by a business environment where the dominating objective is maximizing profits, and I pledged never to work under such circumstances again,” says Hinks.
EANFERRI G CA Y
A new chapter Armed with this knowledge and experience, Hinks moved forward by focusing on Africa. In 2010, Symbion bid for a project for the Millennium Challenge Corporation (MCC) - a sister organisation to USAID - and was awarded two large contracts in Tanzania to build 2,000 kilometers of distribution lines and 26 transmission and distribution substations. Once again community outreach was top of the agenda at Symbion. “In Iraq and Afghanistan we distributed toys and clothes, including soccer kits for the kids, to local communities and we had a great relationship with the indigenous population. We decided to mirror this approach in Tanzania,” says Hinks. The company developed its own training school in the region, once again working with Northwest Lineman College. “We selected three Tanzanians who had some basic line training, to travel to Idaho and receive training that enabled them to teach to U.S. standards. They learned about management and how to be trainers, while they translated training manuals and presentations into Swahili. They worked alongside the U.S. training staff of Northwest Lineman College.” It was while working in Tanzania that Hinks decided he wanted to diversify the business. “Instead of being a contractor that gets paid to build electricity infrastructure, I wanted to develop, design, build and operate it and then sell the electricity we
Symbion Power Center, training in Tanzania
w w w. s y m b i o n - p o w e r. c o m
77
banner_ad:Banner_ad_africa
1/10/12
1:08 PM
NOW IS THE TIME TO INVEST IN AFRICA “Global executives and investors cannot afford to ignore the continent’s immense potential. Today the rate of return on foreign investment in Africa is higher than any other developing region.” — McKinsey Global Institute
Page 1
SYMBION POWER Photocredit: Sala Lewis, Verve Photography for Symbion Power
AFRICA
generate and transmit it to the government and in turn to the people,” Hinks says. In East Africa there is a huge reliance on hydropower, but climate change has driven down rainfall levels. Lower rainfall resulted in power outages across the region, often for up to 18 hours per day. “This has a profound impact on economies, and of course on the living quality of the people,” says Hinks. “In Tanzania there was a power plant in good condition that was the subject of a dispute. It wasn’t operating and yet people all over the country were suffering. I was determined to take over it and help solve Tanzania’s power problems.”
“In Tanzania there was a power plant in good condition that was the subject of a dispute. It wasn’t operating and yet people all over the country were suffering. I was determined to take over it and help solve Tanzania’s power problems.” – P aul Hinks, CEO Symbion Power
w w w. s y m b i o n - p o w e r. c o m
79
Photocredit: Sala Lewis, Verve Photography for Symbion Power
SYMBION POWER Looking to the future In May 2011, Symbion bought the disputed power plant and entered the world of independent power production. Within six months, Symbion owned and operated three power plants in Tanzania, generating 217 megawatts. Hinks chalks that period up as one of his greatest accomplishments. Building on its success in Tanzania, Symbion started to expand across the continent. In 2013, alongside the Nigerian firm Transcorp and other partners, Symbion participated in an international bidding process to acquire a power plant as part of the Nigerian privatization of the electricity sector. “We bid, we won, and
SAFC IN AFRICA
JAKAYA M. KIKWETE YOUTH PARK
For business & partnership opportunities please contact: Clare Wilson - Business Development Manager, clare.wilson@safc.com or Gary Hutchinson - Commercial Director, gary.hutchinson@safc.com Proud partners of Symbion Power and the Jakaya M. Kikwete Youth Park, Dar es Salaam, Tanzania 1331
AFRICA
MEGA WATTS
720 MW currently under operation and 685 MW in the deal pipeline for 2015
Photocredit: Sala Lewis, Verve Photography for Symbion Power
we took the title of being the only U.S. firm to participate in the privatization, and then as part of a consortium, to operate a power plant in Nigeria. When we took the plant operations over it was generating just 160-megawatts; today it is producing 600-megawatts and by the end of the year capacity is expected to reach almost 1,000 megawatts,� says Hinks. And Symbion shows no sign of slowing down; it was recently awarded a contract in Rwanda to produce electricity from methane gas found at the bottom of Lake Kivu. The company has also taken on a large project in southern Tanzania to build a transmission line
Symbion CEO, Paul Hinks and then US Secretary of State Hillary Clinton tour the Symbion Power Plant in 2011.
w w w. s y m b i o n - p o w e r. c o m
81
SYMBION POWER WHERE INNOVATION SHINES Subsea Developments • Pipelines • Terminals • Gas Extraction • Renewable Energy • Software • Installation Equipment
PROUD TO BE SYMBION POWER’S ENGINEERING PARTNER FOR LAKE KIVU GAS EXTRACTION FACILITIES www.antaresoffshore.com solutions@antaresoffshore.com
Jyoti Americas LLC, a wholly-owned subsidiary of Jyoti Structures Limited, is the only lattice tower manufacturer of scale on US soil, with an annual manufacturing capacity of 50,000 Tons.
It is equipped with eleven of the fastest and most advanced CNC angle and plate punch and drill lines for fabrication. The galvanizing plant is the most modern and environment-friendly, in the world; offering galvanizing services to third-party customers. The plant has been operational since May 2012 and is servicing North American customers for tower supply as well as design, testing and third-party galvanizing work.
www.jyotiamericas.com tel: 936-523-4700
Congratulations to Paul Hinks winner of the Bridges to Africa Award at the recent Powering Africa Summit in Washington.
82
We look forward to welcoming all investors in the African power sector to Dubai in June www.africa-energy-forum.com/abr
February 2015
MacLeanPower.com
SYMBION POWER Photocredit: Sala Lewis, Verve Photography for Symbion Power
AFRICA
and a 600MW power plant to harness huge gas reserves discovered in the region. “The Mtwara project will take gas from the gas fields, convert them into electricity and then dispatch the electricity into the national grid. Once it is completed, the project will supply the entire south of Tanzania and possibly its neighbors with electricity. It is a huge project with an investment value of $1.3 billion U.S. dollars. The largest investment ever by a U.S. company in Tanzania. Symbion’s portfolio is growing by the day, along with its reputation as a world-class energy
Symbion specialises in major operational and development projects across Africa
w w w. s y m b i o n - p o w e r. c o m
83
SYMBION POWER
Ecstatic villagers celebrate the arrival of electricity provided by the Millennium Challenge Corporation and Symbion Power
and engineering firm. Alongside his ‘day job’ as the CEO at Symbion Power, Hinks is also the Chairman of the Corporate Council on Africa. “I represent the U.S. private sector and their ambitions to invest in Africa. As part of this, I have also been involved in the genesis of the Power Africa initiative, which President Obama launched in July 2013. I work very closely with privatesector businesses, the US government and
“As one of the private sector leaders in the U.S. Government’s Power Africa Initiative, Symbion continues to expand electricity access across sub-Saharan Africa, contributing to economic growth and development on the continent.” – Paul Hinks, CEO Symbion Power 84
February 2015
Photocredit: Sala Lewis, Verve Photography for Symbion Power
AFRICA
with local government and local communities to ensure the initiative is a success,” he says. “Power Africa is ground breaking and it will see the United States supporting Africa on a grand scale.” Hinks is still the powerhouse behind Symbion, driving it forward and seeking new opportunities for the business and for the communities in which it operates. Its point of difference comes not from its power-engineering prowess, but from its local engagement and its dedication to give back in the regions where it works. “Symbion will always be motivated by the desire to help the people in the places it works. Our staff enjoys this as much as I do and it makes what we do so much more enjoyable and interesting.”
Daily equipment maintenance at the Symbion Power Plant, Ubungo, Tanzania
w w w. s y m b i o n - p o w e r. c o m
85
Titan Marine Engineer
Titan Marine Services Ke Vessels in Ship Shape
The New Zealand-based marine engineering services manages an increasing work volume with great succes Written by: Kevin Smead Produced by: Wayne Masciotro
ring:
eps
company effectively ss.
87
T I TA N M A R I N E E N G I N E E R I N G
Titan Marine continues to work on increasingly larger vessels.
T
itan Marine Engineering is a service provider for the marine, shipping and industry in New Zealand. The company works with some off the biggest on- and off-shore clients operating today, such as Maersk, P & O, WOSL, Sanfords and Fullers Group—which is the 88
February 2015
main ferry operator in Auckland. While the company’s services are both vast and deep, its main focus is repair and maintenance of majestic superyachts, utilizing a massive 80 meter, 1,500 ton slipway to service these luxury vessels. According to Project Manager Anthony Bridge, Titan’s competitive
AUSTRALIA
advantage is its in-house machining and fabrication. “We’ve just completed a $3.5 million re-fit on a 50 meter superyacht,” he said. “We completed major corrosion repairs to both hull and superstructure as well as repairing/replacing systems on the vessel.”
The company also works on the Fullers Group ferry vessels, an essential part of the transportation infrastructure in New Zealand. “We are proud of our very quick repair turnaround on the ferry vessels. Whenever there is a breakdown it can impact on Auckland’s transport and a timely w w w. t i t a n m a r i n e . c o . n z /
89
T I TA N M A R I N E E N G I N E E R I N G repair is essential. Breakdowns are not scheduled and we need to be prepared to make repairs any time of day or night,” he explained. “We have a full team of quality tradesmen available who are able to meet those demands.” And while this is the company’s focus, Titan Marine Engineering can handle all areas of repair or alteration. “We are able to qualify for machining and fabrication for all marine classes,” Bridge said. They take a unique, tailored
approach to each individual job, making them a preferred contractor across marine industry. “Each job and client is oriented depending on the vessel and its ability to maintain classification,” Bridge explained. According to him, this approach means ensuring staff is always properly trained. “For example,” he said, “One of the tasks on the last yacht on the slipway was to replace a damaged rudder. This needed a welding procedure for mild to stainless
AUSTRALIA
steel between the rudder stock and bolting flange. We had to qualify a tradesman for class in this procedure which cost approximately $7,000, with the job itself only costing about $10,000. That is an example of the many challenges to meet various industry demands, Although every job has a tailored aspect to the various tasks involved, the basic principles of planning and application remain. The Industry has a high level of risk of injury and Titan Marine retains the highest (Tertiary) level of ACC’s (NZ’s government operated workplace insurer) Workplace Safety Management Program, which requires a proactive approach to health & safety. Training is conducted for all aspects of the company’s many tasks including confined space, BA rescue, working from heights, etc. Ensuring worker safety is something Titan Marine is focused on, since the nature of work the company is performing is changing. It is important to remain on top of it as it is our staff which is our most important asset and their safety is our first priority. “The trend for superyachts coming
to the south pacific is that there are larger yachts visiting,’” Bridge said. “With the yachts being bigger the scope of work is changing in volume on each job. Nothing is really changing in terms of the type of work, it’s just the scale is becoming larger.” With the increasing scope and volume of work, Titan Marine is always working to ensure its quality never drops. One new area of focus for the company is vessel security—an aspect of the business that’s becoming in high-demand with superyachts owners, guests and crews requiring a high level of security and privacy. “We’ll be evolving that over the next year, tightening up on security and vessel access,” Bridge said. “As they’re getting bigger, security demands are growing and so is our need to accommodate this area. Our management team has been introducing more focus groups to tackle different areas of the company, From company vision and direction to meeting client needs. It’s just breaking it up into smaller groups and dealing with each task or issue on a more individualistic basis.” w w w. t i t a n m a r i n e . c o . n z /
91
T I TA N M A R I N E E N G I N E E R I N G
Titan Marine Engineering offers efficient, competent and professional marine and en
Titan Marine is finding great success with its increased workload. They have had some major clients return after using alternative service providers, Bridge said ‘this is testament to the quality of work and the timely manner in which we are able to provide’. He isn’t concerned with the increased workload, though he noted being adaptable is a big part of any business. “The game changes so quickly,” he said. “We find a problem and that 92
February 2015
could lead to into many others. We constantly find that you can haul a vessel and its scope of work is never exactly as planned. It’s really hard to gauge or schedule the work ahead. I guess that is what makes this industry interesting” That doesn’t stop Titan, though. “We’re always ensuring that the quality of work expected and timelines are met,” Bridge said. “That’s our main focus: delivering quality workmanship on time.”
AUSTRALIA
Company Information INDUSTRY
Energy HEADQUARTERS
Auckland Australia, New Zealand FOUNDED
1993 EMPLOYEES
100
ngineering services.
REVENUE
$60 million
Bridge attributes the company’s successes to its employees, also noting of the geographical position of New Zealand, the lifestyles that come with it and the advantage it gives them. “It’s the people, really,” he said. “We’re quite lucky here in Auckland that most people that are under our employment are marine focused in their lifestyle as well. That’s a big help for us.” At more than 20 years old, Titan is still focused on providing high-quality service, on time, to its growing list of major clients.
PRODUCTS/ SERVICES
Titan Marine Engineering was established in 1993 to provide an efficient, competent and professional marine and industrial engineering service to local and International clientèle.
w w w. t i t a n m a r i n e . c o . n z /
93
ENERGY THA
With efficient and sustain the company invests in
PITANGUEIRAS PLANT:
AT MOVES THE REGION
nable production, in addition to its success in power generation, n innovations in agricultural and industrial areas within Sรฃo Paulo Written by: Flรกvia Brancato | Produced by: Danilo Stefanelli
95
P I TA N G U E I R A S S U G A R A N D A L C O H O L LT D .
S Mechanized harvesting
Sugar conveyor belt
Sugar factory
96
February 2015
ince 1975, Pitangueiras Sugar and Alcohol Ltd (PITAA) has been moving the Brazilian economy in a sustainable way. From a modest sugar cane factory with a milling capacity of 1,000 tons/day, the company has become a producer of alcohol in the country and, consequently, started the operation of a yeast drying plant, the construction of a sugar factory, a packing lounge, a finished products warehouse, and the enlargement of its industrial analysis laboratory. In 2001, the then Pitangueiras Distillery Ltd became Pitangueiras Sugar and Alcohol Ltd, with a production capacity of 10,000 bags of 50 kg of
BRAZIL
sugar and 600 thousand liters of alcohol per day. Thus, the company established itself as a major producer of electricity in the countryside of the state of Sao Paulo, commercializing the surplus of its production. Today the numbers demonstrate the success of a journey full of challenges. The company is currently responsible for a cutting area that corresponds to 29,000 hectares, performs the milling of more than 2.4 million tons of sugar cane, produces 67,000 cubic meters of ethanol and more than 4.2 million bags of sugar (50 kg), and generates a total of 140,000 MWH/ year in energy. PRODUCTION AND QUALITY POLICY With the objective of producing, industrializing, and commercializing sugarcane derivatives in national and international markets, PITAA has developed almost a dozen products, including different types of sugar, ethanol, and electricity. With the highest technology applied to its production line, the company extracts sugarcane products for different purposes such as dry yeast, fossil oil, and hydrolyzed and natural bagasse. The use of biomass for power generation is a sustainable option that ensures the noninterference in global warming and prevents the release of other harmful emissions to the environment. This coincides with another distinguishing feature of the company: its administration and quality control. “Like few healthy plants of Brazil, the Pitangueiras Plant is
Management João Batista de Andrade CEO
Rafael de Andrade Neto CHIEF AGRICULTURAL OFFICER
João Henrique de Andrade FINANCIAL AND INDUSTRIAL MANAGING DIRECTOR
“Like few healthy plants of Brazil, the Pitangueiras Plant is still today operated by the family” – PITAA Financial and Industrial Managing Director, João Henrique de Andrade
w w w. p i t a a . c o m . b r
97
P I TA N G U E I R A S S U G A R A N D A L C O H O L LT D .
Centrifugal sugar machine
still today operated by the family. Thus, we manage everything very closely, always searching for technological improvements and the effective training of our employees,” explains the PITAA Financial and Industrial Managing Director, João Henrique de Andrade. The challenges of the sector make the company focus even more on its commitments to meet the demand and remain strong in the market. Andrade also warns that, with the increase in production cost, it is important to concentrate efforts in all possible areas. “We are investing in electrical power and working very hard to reduce production cost, improving the efficiency of the plant and lengthening short-term debt,” he says. One of the strategies is the investment in the recollection of sugarcane 98
February 2015
BRAZIL
Integrated Operations Center
straw, for example, through the installation of balers, straw choppers, and machinery for the transport of material. Started last year, another important investment was in the process of burning and power generation, which included the installation of sugarcane juice suction pumps that help with extraction and reduce the humidity of the bagasse that feeds the juicer. PROFESSIONAL AND ENVIRONMENTAL DEVELOPMENT In pursuit of excellence, the company invests in the development and training of its employees. Pitangueiras Sugar and Alcohol has training programs that include courses in personal and professional development and scholarships, thus guaranteeing continuous learning and skilled labor. “We offer a 40 percent scholarship for those who want to improve in some w w w. p i t a a . c o m . b r
99
P I TA N G U E I R A S S U G A R A N D A L C O H O L LT D .
100
February 2015
BRAZIL
way in an area of the company,” explains the director. Among the professional training programs, the “Project Renewal” deserves to be highlighted. Coordinated by the Sugar Cane Industry Union (Única) in partnership with the Federation of Rural Workers Employed in the State of São Paulo (FERAESP), the project has as its goal training not only for labor but also literacy projects, improvement in English and mathematics, and various initiatives in the area of education directed at employees and at the community at large. Since 2007, the company has cultivated the PITAA Native Trees Nursery. The initiative of environmental preservation has spread gradually; today the Santa Terezinha Farm produces approximately 50,000 seedlings per year, taking into account both the internal consumption and consumption for suppliers. Among the cultivated species are jabuticaba (Myrciaria cauliflora), raspberry, lemon cloves, Japanese grape, rosewood, jequitibá (Cariniana legalis), pau-brasil (Caesalpinia echinata), dry meal, and pink, purple, yellow, and white ipês.
Sugar conveyor belt
Power generator
Bagasse stock
“Our main focus is the reduction of cost and return on invested capital. We are currently working on a project to increase the generation of energy, for example” – PITAA Financial and Industrial Managing Director, João Henrique de Andrade w w w. p i t a a . c o m . b r
101
Coopercitrus
P I TA N G U E I R A S S U G A R A N D A L C O H O L LT D .
A A Tribute Tribute to to
Usina Pitangueiras from from Coopercitrus. Coopercitrus. A A partnership partnership that that generates generates renewed energy and renewed energy and projects projects Brazil Brazil to to the the world. world.
Coopercitrus: Soluções integradas, resultados sustentáveis. www.coopercitrus.com.br
Directors and managers meet
SUSTAINABLE GROWTH According to Andrade, for new technologies and update of modern equipment, PITTA’s investments are around R$ 7 million per year. “Our main focus is the reduction of cost and return on invested capital. We are currently working on a project to increase the generation of energy, for example.” With a current capacity to generate around 26 MWH, and with the new initiative in practice, it is expected that the total generation will double in value. The new project consists of the use of condensation turbines, evaporative condensers, and electrification of mills, which provide better energy efficiency for the whole system, lower steam consumption per MW 102
February 2015
BRAZIL
Company Information INDUSTRY
Sugarcane-based energy HEADQUARTERS
Pitangueiras, SP - Brazil E S TA B L I S H E D
1975 EMPLOYEES
1095 ANNUAL REVENUE
ting
US$119 million
generated, and lower power. Always in search of sustainable growth, and with good expectations for the near future, the director is optimistic and concludes, “We always work for continuous improvement within the company in all aspects: quality, health, and safety. We grow slowly, as the market is improving. In 5 years we must achieve the milling of 3 million tons.”
PRODUCTS/ SERVICES
Sugar, ethanol, yeast, energy
w w w. p i t a a . c o m . b r
103
JMALUCELLI ENERGIA
GENERATION, TRANS AND SALE OF ENERG
With efforts targeted to new investment opportunities, te in management efficiency, the company signifies excelle Written by: Flรกvia Brancato Produced by: Danilo Stefanelli
SMISSION GY
echnologies, and improvement ence in the industry 105
JMALUCELLI ENERGY SA
O
perating for over 13 years within the national territory, JMalucelli Energy (JME) has a portfolio of 1133 megawatts in operating assets and power generation projects, 1100 km of transmission lines, and many substations. The holding company is one of the largest business groups in the state of Paranรก and has more than 70 companies operating in various sectors of the Brazilian economy, including construction, sales and rental of heavy equipment, finance, communications, and others. JME operates in the generation, transmission, and sale of energy, from the identification of potential developments in inventory to the deployment and commercial operation of the project. The company focuses its investments on power generation projects from renewable sources in wind, hydroelectric, and solar parks. JME seeks to develop, implement, and operate its assets in clusters that allow for cost
EOL Rei dos Ventos 3 - Brasventos 106
February 2015
BRAZIL
UHE Espora, Rio Corrente - Goiás
optimization in all stages of operations. JME’s assets and hydroelectric generation projects are concentrated in Goias, Mato Grosso, and Paraná, while its wind projects are distributed in two regions of Rio Grande do Norte. Currently, JME participates in 187 MW in wind farms and 62 MW in hydroelectric generation. It also has four transmission lines in operation, in addition to approximately 500 MW in wind, hydro, and photovoltaic park projects. THE ENERGY INDUSTRY Because it is a private and independent renewable energy company – it has no ties to major distributors – JME enjoys benefits. “Our competitive advantage lies in the development of core competencies of JMalucelli Group – heavy construction and financial structuring – combined with a very lean structure in the holding company,” explains the JME CEO João Marcos Prosdócimo Moro. w w w. j m a l u c e l l i e n e r g i a . c o m . b r
107
BRAZIL
The company consists of 14 professionals with extensive experience in development and the implementation of projects of renewable energy generation. All JME operation is outsourced. “But we plan to have our own team so we get a number of projects that justify this initiative,” says the CEO. An industry trend that can bring more business to the company is the generation of solar energy. According to the CEO, as new generation sources are located in the North and Northeast, the transmission infrastructure investments to exploit this type of energy will continue to be prioritized. “Considering this trend, JMalucelli Energy should continue investing in the best projects of its portfolio in order to maximize the return for its shareholders and ensure a low-risk cash flow and business sustainability in the long term,” he adds. PROJECTS AND EXPANSION Reinforcing its commitment to the use of renewable energy, among dozens of projects spread across ten Brazilian states, JME is installing a solar photovoltaic power generation system at the Federal University of Goiás (UFG). The unit is scheduled to come on stream in April 2015. The project, which aims to promote research in the field of photovoltaic generation, is forecast to 17 kilowatts-peak of installed capacity and will supply a third of the (energy) load of the UFG School of Engineering. In the last three years, JME has invested more
JMalucelli Energy CEO, João Marcos Prosdócimo Moro
“We have eight very promising wind farms, with 200 MW of total installed capacity, which make us ready to participate in future energy auctions in 2015” – JMalucelli Energy CEO, João Marcos Prosdócimo Moro
w w w. j m a l u c e l l i e n e r g i a . c o m . b r
109
JMALUCELLI ENERGY SA
SHP Queixada, state of Goiás
MGE Transmission
UHE Belo Monte
110
February 2015
than R$ 1 billion and implemented nine projects that pertain to the generation and transmission of energy. Among them, there are three wind parks, one small hydroelectric plant (SHP), four transmission lines, and one hydropower plant. With the exception of the Belo Monte Hydroelectric Power Plant, all other projects are already in commercial operation. JME has a solid portfolio of projects. Among them, the Queixada SHP, in Goiás, deserves to be highlighted. The plant was constructed by JMalucelli Construction Works and the whole process of development and implementation was managed by the company’s technical team. The CEO is adamant when he says that “Queixada Small Hydroelectric Plant – an SHP of 30 MW
BRAZIL
and capacity factor of 0.73 – is our main asset and, in it, we have 100% participation.” Further, he explains, “The energy supply contracting is also a success, with 80% of generated energy contracted through the 30 year Multi-Annual Plans (MAPs) indexed to the inflation in the regulated market – large distributors.” JME’s smooth-sailing success does not stop there. During the next five years, JME will continue to increase its portfolio of assets of renewable energy generation through the implementation of development projects. Prosdócimo details the positive forecasts of the company’s growth. “We have eight very promising wind farms, with 200 MW of total installed capacity, which make us ready to participate in future energy auctions
“Our competitive advantage lies in the development of core competencies of JMalucelli Group – heavy construction and financial structuring – combined with a very lean structure in the holding company” – JMalucelli Energy CEO, João Marcos Prosdócimo Moro
w w w. j m a l u c e l l i e n e r g i a . c o m . b r
111
JMALUCELLI ENERGY SA
Renewable transmission
in 2015. These energy parks, when contracted, will take between 3 and 5 years to begin to operate. Among our SHP projects, we have three main projects in development that could add another 120 MW within the next five years,” he concludes. QUALITY AND SAFETY A good example of the company’s care for the environment is the three wind farms (RDV 1, RDV 3 and MIA 3) that are operating in Rio Grande do Norte. All of them are already installed. Currently, the company monitors the operation and maintenance of three desalination plants in the city of Galinhos, which includes a biweekly analysis of water quality. “In addition, a project has been developed and agreements have been signed with the Galinhos city government for the construction, operation, and maintenance of landfill, sanitation, and water supply facilities in the city,” 112
February 2015
BRAZIL
Company Information NAME
JMalucelli Energy INDUSTRY
Energy HEADQUARTERS
Curitiba/PR - Brazil PRODUCTS / SERVICES
Company totally focused on investments in generation, transmission and sale of electricity
says Prosdócimo. Above all, JME, together with the other companies within the group, is currently going through a process of structuring its quality, safety, environment, and occupational health practices. These practices follow important guidelines, such as the integration of safety and occupational health, environmental integration of quality practices, the creation of an annual schedule of processes monitoring visits (to be performed by internal auditors from specific departments), the monitoring of all of the company’s business units, and an ongoing review of existent policies, creation new ones when necessary.
MANAGEMENT
CEO: João Marcos Prosdócimo Moro Directors: Paola Malucelli de Arruda e Celso Jacomel
w w w. j m a l u c e l l i e n e r g i a . c o m . b r
113
COGENERATIO ASSOCIATION Written by: Newton J Leme Duarte e Leonardo Caio Produced by: Danilo Stefanelli
ON INDUSTRY OF ENERGY
115
COGEN
T Congen gas commerce and services - Engine
AmBev - Congen Gas 10 MW Vapor and electric power
Turbine and boiler
116
February 2015
he COGEN – Cogeneration Industry Association of energy was constituted in September 5, 2003, with institutional focus, without commercial purposes, aiming at the development of cogeneration of energy from natural gas and bio-energy from sugar cane (bioelectricity), energy generation from garbage and solar energy. The COGEN is composed by 91 companies, which act in the chain of cogeneration of energy companies including generation, transmission, distribution and sale of electricity and natural gas; sugar-energy industry companies, suppliers
BRAZIL
Key People Chairman of the Board Sergio Luiz da Silva
Production process layout: Sugar cane industry
of equipment and materials; Engineering and consulting companies; service providers and users of cogeneration. The COGEN develops studies in the areas of energy and cogeneration acts for official Government, to develop an institutional regulatory environment distributed generation inducer. The COGEN is also a business-inducing, in order to promote the network between associated enterprises and related companies with companies with common interested.
Executive Vice President Newton José Leme Duarte
• TPHC-Tietê Paraná development agency • Comgás-Cia de Gas de Sao Paulo (www.comgas.com.br) • Dalkia Utilities Ltda (www.vivantebr.com) • EnergyWorks of Brazil Ltda (www.energyworks.com)
Technology and Applications Manager Leonardo Santos Caio Filho
w w w. c o g e n . c o m . b r
117
COGEN
118
February 2015
BRAZIL
• Gas Brasiliano Distribuidora Ltda (www.gasbrasiliano.com.br) • Gas Natural SPS Ltda (www.gasnatural.com) • Energy Service Iqara Ltda (www.ecogenbrasil.com.br) • Siemens Ltda (www.siemens.com.br) • TEC Participações Ltda (www.utc.com.br) • Tractebel Energia Ltda (www.tractebelenergia.com.br) • Unica (www.unica.com.br) The participation of undertakings in COGEN is free choice. The conditions of participation, benefits, responsibilities and importance of participation will depend on the interests of our own companies that will constitute the “institutional strength” of COGEN. The participation will be in the following categories:
Assiciation Information NAME
Cogeneration Industry Association of Energy (COGEN) INDUSTRY
Energy HEADQUARTERS
São Paulo, SP - Brazil E S TA B L I S H E D
September/05/2003 NUMBER OF MEMBERS
• Effective Associates: legal entities, public and private, that operate in cogeneration market and have an interest to participate and contribute to the activities of COGEN, intensively, active and participatory working groups, deliberations, election and voting in the Assembly. • Associated contributors: individuals and corporations with an interest in technical, economic and legal progress of cogeneration, wishing to contribute to the activities of COGEN.
93
w w w. c o g e n . c o m . b r
119
Desenvix adds tradition to sector with excellence in the renewable energy area With capacity of over 2,960 MW installed in Brazil, the company stands out in all lines of operations, mainly for best performance in wind energy generation Written by: Flรกvia Brancato | Produced by: Danilo Stefaneli
121
DESENVIX AND ENEX
W
ith the purpose of identifying, evaluating and developing business opportunities in the area of renewable energy, in almost two decades Desenvix has already developed and contributed to the implementation of over 5,300 MW in electric energy generation enterprises operating in Brazil. The tradition and excellence in the electricity sector led the company to an even higher level. Focusing on the development, implementation and operation of new projects in the area of generation and transmission of electric energy from renewable sources is one of Desenvix major goals. Among Hydroelectric Power Plants, Small Hydroelectric Power Plants, Thermoelectric Power Plants and Wind Power Plants, there are altogether 15 enterprises in operation to produce 100 percent renewable electricity, with own installed capacity of 349 MW.
UHE Monjolinho
122
February 2015
BRAZIL
Moreover, the company takes part, with 25.5 percent, in two 511 km-long transition lines under implementation. The extensive portfolio of projects totals no less than 2,960.8 MW of capacity installed, comprised of 17 Priority Projects under Development in addition to 21 Projects under Development. HIGHLIGHTS IN THE SECTOR Desenvix CEO, Roberto Coas, proudly assumes that the work focused on renewable energy projects, together with steady financial and corporate governance principles, was and continues to be of essence to the growth and the consistent development of the company. “We work to achieve excellence in all of our activities. Our Plants in the Wind Farm of Bahia, for example, have the best performance in wind energy generation among the participants of the National Integrated System, with average capacity factor of 48 percent in the last twelve months, according to the Monthly Bulletin of Wind Energy Generation.” On the occasion, he also highlights the success in the operations of the plants of Novo Horizonte and Seabra, which ranked first and second respectively, in the overall ranking. The achievements along the way are also key factors that justify the primacy. In September 2011, Desenvix purchased the entire share control of Enex – a company specialized in the operation and maintenance (O&M) of power plants, substations and electricity transmission lines. Holding 100
Key People DESENVIX
Management
João Robert Coas - CEO
Directors
. Samuel Saldanha Teixeira . Paulo Roberto Fraga Zuch . Darico Pedro Livi . Paulo Marcelo Gonçalves Margarido . Margaret Rose Mendes Fernandes
w w w. d e s e n v i x . c o m . b r
123
C O M PA N Y N A M E
Operation Center (COS) of ENEX O&M
percent of the capital, the company currently works as a provider of operation and maintenance services for power plants and electric systems. To that end, a few months ago, Enex O&M became the largest company of O&M in Brazil, totaling 46 agreements distributed in 75 plants – 40 of which are Small Hydroelectric Power Plants and 24 being Wind Power Plants – and about 1.8 GW in operation. Coas further points out that “in only eight years of operation, the company already accounts for 13 percent of the national total of Small Hydroelectric Power Plants (in volume of companies, excluding companies that perform O&M for their own assets). Enex O&M goal is to ensure high productivity with reduced costs and great agility.” An important point is the geographical location of the company, which brings a reduction of costs for clients. Furthermore, the Operation Center 124
February 2015
SECTOR
(COS) located in Florianópolis concentrates all the activities, quickly solving problems in remote locations, by making use of several resources available to the company across the country. “We see a great potential for growth for O&M, particularly considering the wind energy projects to be developed in the coming years,” adds the CEO. Still prioritizing sustainability in all the projects involved, Desenvix has in its operating system a strict environmental assessment that takes into account, for example, changes in the environment and influences on the socio-economic environment in the areas of direct and indirect influence of the enterprises. Going further, since 2004 the Engevix Institute – a social responsibility project of Engevix Engenharia S.A – has had the mission of promoting an improvement in the quality of life for low-income communities of the Great Florianópolis, in Santa Catarina. The program targets the w w w. d e s e n v i x . c o m . b r
125
BRAZIL
education and the recovery of citizenship of its target audience, by seeking ways of enhancing learning and the creative capacity of the community, assisting in their social development. CORPORATE STRATEGY When it comes to management models, the company adopts high standards of corporate governance according to the standards required from publicly-held companies, such as, for example, the adoption of a Board of Directors and Audit Committee, hiring of external audit and maintenance of the Area of Relationship with Investors. As for professional qualification, according to Coas, skilled labor is one of the major challenges for the company, particularly for Enex O&M. “This is a quite specific labor, especially when it comes to O&M for wind farms. This is an area that should attract many jobs in a near future. Today we have difficulty in finding this kind of labor and invest in training, which has proved to be a successful formula because we have managed to put together a sound performance in all regions of the Country, which is crucial to support our customers with agility,” he explains. Another key element regarding strategies to improve quality, health and safety, in addition to continuous investments in technology, is to keep dedicated professionals committed to the company mission. “To that end, we invest heavily in our personnel, outsourcing when necessary and focusing on the development of activities directly related to the business,” explains Coas.
“We see a great potential for growth for O&M, particularly considering the wind energy projects to be developed in the coming years” – Robert Coas, CEO w w w. d e s e n v i x . c o m . b r
127
DESENVIX AND ENEX
CORPORATE RESTRUCTING On September 22, 2010, after a corporate restructuring held for the indirect entry of Fundação dos Economiários Federais (FUNCEF) in its capital, the Company started to operate under the corporate name “Desenvix Energias Renováveis S.A.” (Desenvix). In September 2011, Desenvix was granted the registration of publicly-held Company by the Brazilian Securities Commission (CVM), and then had the Company shares listed on Bovespa Mais. In March 2012, the Norwegian government-owned company SN Power became a shareholder of Desenvix holding 40.65 percent of the company capital; Jackson Empreendimentos holds the same percentage; and Fundação dos Economiários Federais (Funcef), 18.7 percent. Due to changes in the share control of SN Power Group, in June 2014, SN Power
BRAZIL
Monjolinho’s turbines
w w w. d e s e n v i x . c o m . b r
129
DESENVIX AND ENEX
“For us, 2014 was a very important year, for establishing the financial principles, improving our debt profile, downsizing the structure, investing in productivity” – Robert Coas, CEO 130
February 2015
Brasil Investimentos Ltda. changed its corporate name into Statkraft Investimentos Ltda. Statkraft is a Norwegian company, the leader and the largest renewable energy generation company of Norway, and the third largest in the Nordic region of Europe since the 1990s, working in the segments of hydroelectric energy, wind energy and urban heating gas. TRENDS AND THE FUTURE Keeping pace with the great potential for renewable energies in the sector, doubtlessly Desenvix diversification becomes even more remarkable. Coas celebrates the favorable winds
BRAZIL
considering that “first of all, it is important to emphasize that we see this force in the market for renewable energies, especially for wind farms. Dependence upon rainfall rates and the hydrological character of the Brazilian energy model, together with high prices of the energy and its distribution across the country, has encouraged the Government and the sector in general to focus their attentions on renewable energies such as wind energy and solar energy, in addition to biomass.” Still, the evident impact of MP 579 – Provisional Measure addressing the reduction of charges in the rate and the renewal of concessions in the electricity sector, added to the crisis now faced by the energy sector, definitely bring up some obstacles. “Certainly (such factors) represent challenges with which we are coping very well, thanks to our steady financial principles and focus on actions that can increase the company productivity and efficiency,” says Coas with satisfaction. When asked how he sees Desenvix five years from now, CEO Roberto Coas is honest. “For us, 2014 was a very important year, for establishing the financial principles, improving our debt profile, downsizing the structure, investing in productivity. For the coming years, we will work on new projects and we are, for now, watching and studying all the possibilities.” He adds, “and it is crucial to point out that we currently have a company with sound financial principles.”
Company Information NAME
Desenvix
INDUSTRY
Renewable energy HEADQUARTERS
Florianópolis (SC) Brazil E S TA B L I S H E D
1995 EMPLOYEES
60 Desenvix / 350 Enex PRODUCTS / SERVICES
Mainly hydroelectric and wind energy generation; new electricity generation technologies, such as solar/photovoltaic and WTE
w w w. d e s e n v i x . c o m . b r
131