Energy Digital magazine - November 2016 by Energy Digital

November 2016

www.energydigital.com

Electric vehicles that will make waves

Mann Hummel Smart filter technology

Driving value in the digital economy

SAP Ariba enables

intelligent exchanges between millions of buyers and suppliers

Deliver an enhanced customer experience We can support your business to simplify its IT infrastructure and achieve its strategic objectives on its digital transformation journey. More than 8 million businesses across 170 countries trust us to keep their business ahead of the curve. www.business-solutions.telefonica.com

EDITOR’S COMMENT

The future is now? TO CLAIM THAT ‘the future is now’ is something of a paradox. By definition, the future lies ahead of us — but rapid increases in technology development could start to make the present feel like a sci-fi film. This month’s edition of Energy Digital spends some time exploring cutting-edge developments within the sector. We spoke with Alta Devices, a US company working to bring power to the ‘unplugged’ world using highly efficient mobile solar panels. When the firm’s vision is realised, we could see unmanned solar drones darting across our skies. The renewable revolution is happening on the ground, too. We also take a look at four groundbreaking vehicles whose battery technologies could very well change the way we move. However, we must contend with intermittency if renewable technologies are to effectively and efficiently make their way to our electricity grids. The case of California’s Diablo Canyon, the state’s last remaining nuclear power plant, will set a precedent for the future of ‘baseload’ resources across the country. We hope you enjoy the issue and, as always, leave us thoughts and comments @EnergyDigital

Enjoy the issue! Jennifer Johnson Editor jennifer.johnson@bizclikmedia.com 3

CONTENTS

F E AT U R E S

06 TECHNOLOGY

Breaking down Diablo Canyon nuclear & United Statesâ&#x20AC;&#x2122; energy future 4

November 2016

PROFILE

For mobile solar, the sky is the limit LIST

4 EVs changing the way we move

C O M PA N Y P R O F I L ES SAP

Australia

Jeff Carvell Asia

28 42

Mann Hummel Australia

SCT&E LNG USA

PROFILE

With the advent of smaller, lighter and more flexible solar panels, drones could soon be powered by the sun’s rays. Solar developer Alta Devices is exploring the many uses of ‘mobile’ solar panels Writ ten by: JENNIFER JOHNSON

PROFILE

IN LATE JUNE, a solar-powered drone developed by Facebook took to the skies for a 96 minute test flight. The aircraft, called Aquila, might have the wingspan of a jet airliner, but it isn’t designed for commercial passenger flight. The minds behind the world’s most popular social network have an entirely different plan for their unmanned aerial vehicle (UAV): ‘beaming’ internet signals to communities in remote locations. With Google also carrying out internet-delivery drone trials early this year, it’s clear that tech giants feels unmanned aircraft are part of the industry’s future. Facebook is still assessing whether Aquila will be an efficient and effective alternative to simply installing network

November 2016

infrastructure in unconnected regions. However, this doesn’t mean that other developers are waiting for a big name to prove the technology is viable before moving into the market. The many uses of a solar drone “Right now, it certainly seems like unmanned aircraft are a ‘no-brainer’. It’s going to happen and it has the potential to be quite big,” says Rich Kapusta, Chief Marketing Officer and Head of Sales at Alta Devices, a California company which specialises in delivering the world’s most thin and efficient mobile solar technologies. This year, the company broke the world record for dual-junction solar cell efficiency and currently holds the record with 31.6 percent of sunlight

FOR MOBILE SOLAR, THE SKY IS THE LIMIT

converted into electricity by its gallium arsenide (GaAs) cell. Alta Devices is currently in the midst of exploring the applications of its ultra-thin and efficient solar cells. And it’s putting significant stock in the UAV market. “If you believe what Facebook and Google are saying about how many planes are gonna be needed to cover certain pieces of the globe to provide communications services, Explaining Alta Devices the numbers are in the tens of Mobile Power Technology thousands of airplanes,” Kapusta says. “We are talking to all the manufacturers or carrying out remote search and that make those kinds of aircraft.” rescue operations. When the wings While large solar drones have of these aircraft are covered in Alta’s potential in the telecommunications solar cells, Kapusta predicts that sphere, Alta believes that a different they will be able to stay aloft for market for smaller unmanned perhaps 9 or 10 hours at a time. aircraft will soon develop. A small solar UAV won’t fly for months at a Do we have the technology? time, but will spend days or hours If solar drones, big or small, are going monitoring large agricultural assets to be flying to every corner of the globe,

“Right now, it certainly seems like unmanned aircraft are a ‘no-brainer’. It’s going to happen and it has the potential to be quite big” – Rich Kapusta, Chief Marketing Officer and Head of Sales at Alta Devices 9

PROFILE they will inevitably encounter regions with short days or very low sunlight. This will present hardware challenges and require more efficient solar cells and greater battery storage capacity. “You can imagine a government that might want to do surveillance over the polar ice caps,” Kapusta explains. “They’re going to spend a lot of money making that happen, and that market may be small, but there is going to be a need for higher performance solar cells.” Developers worldwide are approaching the theoretical limit for solar cell efficiency,

November 2016

particularly those using crystalline silicon, the most common PV manufacturing material. Other compounds, including gallium arsenide — Alta’s material of choice — have greater efficiency potential. Adding multiple junctions, or layers, to a single cell can also improve its efficiency. Supplementary layers

FOR MOBILE SOLAR, THE SKY IS THE LIMIT

can be optimised to convert certain pieces of the sun’s spectrum into electricity, thereby increasing performance. However, the more complex the solar cell the more expensive it will be to produce and eventually purchase. “We’re trying to make our single junction as cheap as possible and then create a few technologies that give higher performance at higher cost points for those people that

on the latter as another development which will produce demand for solar technologies in the coming years. As interest in ‘smart homes’ equipped with data-aggregating sensors grows, so will the need for a renewable power supply. “You want to put sensors in every corner of every room and you don’t want to be constrained by having to connect them to the power supply. That drives you to needing them

‘A small solar UAV won’t fly for months at a time, but will spend days or hours monitoring large agricultural assets or carrying out remote search and rescue operations’ really need the extra performance,” says Kapusta of Alta’s efforts to reconcile cost and energy output. Mobile solar comes down to earth Of course, the uses of a flexible, portable solar panel are not limited to aircraft. Alta intends to expand its technology to reach a number of emerging markets, including wearables, consumer devices and in-home IoT. The company is banking

to be battery powered,” Kapusta explains. What we’re trying to do is create something that eliminates the need to replace those batteries.” Ultimately, the uses for small, flexible solar panels are many. As markets continue to recognise the benefits of solar power over charging cables and fossil fuels, companies like Alta will be ready to respond to demand. That old cliche, ‘the sky’s the limit’? Well, for emerging solar technologies, that isn’t quite true. 11

www.nrc.gov

TECHNOLOGY

November 2016

Breaking down Diablo Canyon

nuclear and United States’ energy future Proceedings are underway to close California’s last remaining nuclear power plant. And the entire US energy sector will feel the effects. W r i t t e n b y : B R YA N E S T E R LY, I N F R A S T R U C T U R E A N A LY S T, T H E S U S TA I N A B I L I T Y A C C O U N T I N G S TA N D A R D S B O A R D

PG&E HAS PROPOSED shuttering California’s last remaining nuclear power plant, calling on energy efficiency, renewables, and energy storage to take center stage. The interaction of state regulatory policy and energy economics has led to the proposal, which would take 18,000 gigawatt hours (GWh) of annual carbon-free electricity output offline in less than 10 years. Understanding PG&E’s proposed approach to meeting demand, absent the plant that produces nearly 9 percent of the state’s electricity, is useful for understanding

the opportunities and challenges of driving efficiency and transitioning to renewable energy across the country. Carbon free, but not “renewable” California’s Renewable Portfolio Standard (RPS) requires 50 percent of utilities’ power to qualify as renewable by 2030. According to state law, nuclear energy does not qualify. Since renewable energy, such as solar and wind, is typically an intermittent energy source, utilities and grid operators need to supplement renewables with compatible energy 13

TECHNOLOGY sources. This typically translates to avoiding high capacity baseline plants, in favour of more flexible generation, such as natural gas. Unfortunately for nuclear enthusiasts, nuclear plants are nearly all fixed costs. If their steady supply of energy cannot be continuously put onto the grid due to a minimum renewable threshold, then the cost per kilowatt hours (kWh) skyrockets. At the same time, natural gas pricing has further contributed to making nuclear energy uneconomical – at least in the short-term. 18,000 GWh of energy demand met by efficiency, storage and renewables Diablo Canyon generates 18,000 GWh of annual energy output, representing 20% percent of PG&E’s energy and nearly 9 percent of California’s energy consumption. In its formal proposal to the California Public Utilities Commission (CPUC), PG&E proposed that the plant should cease operations by 2024 and 2025, when its current nuclear licenses expire. Energy needs will then be met by three tranches, all of which are to be carbon-free. The first tranche is 14

November 2016

2,000 GWh of efficiency program implementation prior to 2025. The second tranche is deploying 2,000 GWh per year of new renewable energy projects, beginning in 2025. The third tranche is essentially a voluntary promise to supply at least 55 percent renewable energy by 2031, a commitment that surpasses the 2030 renewable portfolio standard (RPS) requirement of 50 percent. This third tranche is designed to allow flexibility, given the high degree of uncertainty in predicting energy needs 15 years from now, though it contributes to scepticism from many concerned with climate change. The fear is that PG&E will ultimately have to rely on gas plants more than what would have otherwise been required if Diablo was not closed. What this means for utilities, their customers, and investors The fact that PG&E feels comfortable with making up for the loss of this massive baseload plant, while continuing to meet its customers’ energy needs solely through energy efficiency and renewable energy is making heads turn throughout the industry – and rightly so. Why?

www.wikipedia.org

Diablo Canyon generates 18,000 GWh of annual energy output, representing 20 percent of PG&Eâ&#x20AC;&#x2122;s energy

www.wikipedia.org

TECHNOLOGY

November 2016

BREAKING DOWN DIABLO CANYON

It speaks volumes on how energy efficiency and the deployment of renewables are not marginal tools – rather they must be fundamental, leading tools in any utility’s or regulator’s toolbox from this point forward. The bottom line is that utilities are now expected to increase customer energy efficiency and deploy renewables before anything else. This does not, however, mean a reduction in utility capital spending. To the contrary, a widely acknowledged fact is the desperate need to improve the U.S.’s grid, a capital-intensive endeavour. While investor-owned utilities invest around $100 billion in capital investments per year, according to Edison Electric Institute, many estimate that we will continue to have shortfalls in grid investment. The American Society of Civil Engineers, for example, estimates that the investment gap to our electricity infrastructure will be $107 billion by 2020. Grid upgrades are paramount to enabling utilities to play a constructive role in driving energy efficiency of their customers, as well as the successful deployment of renewables – both distributed and utility-scale. Smart grids, demand response, distributed

generation, and effective integration of intermittent renewables are all predicated on a modern, effective grid. Furthermore, PG&E’s proposal provides a stark example of the opportunity utilities have to transform their financial incentives to a structure that’s more compatible with the increasing societal needs around carbon reduction and energy efficiency. The proposal recognizes that the utility’s role is much greater than simply serving as an energy vendor. After all, a vendor would not typically advocate for a reduction in consumption. Striving to meet its customers’ energy needs is a greater mission than maximizing energy sales – and one that can align shareholder returns with societal needs. The message to utilities, their customers and investors is clear: prioritize efficiency, prioritize renewables (both distributed and utility-scale). If PG&E can leverage both of these areas to enable the retirement of 18,000 GWh of annual electricity production while voluntarily surpassing its 50% RPS mandate, then what can other utilities around the country do, and how can their customers and investors benefit?

TOP EVS

4 EVS CHANGING the way we move

The phrase “electric vehicle” may conjure the image of a sleek Tesla Model 3 or a petite Nissan Leaf. However, the EV market is larger than its most successful passenger cars. The future of transport is electric here are four vehicles (or vessels) ready to usher in the low-carbon era Written by: JENNIFER JOHNSON

TOP EVS

November 2016

4 E V S C H A N G I N G T H E W AY W E M O V E

SCANIA ELECTRIC HIGHWAY Transportation accounts for more than one-third of carbon dioxide emissions in Sweden, and nearly half of these originate with freight transport methods. This summer, the Scandinavian country decided to put a new method of truck transit to the test on a 2km stretch of motorway north of Sweden. And they call it, quite rightly, an “eHighway”. Specially-designed Scania trucks will travel along the eHighway, made by engineering titan Siemens, using a pantograph which feeds power to the vehicle’s via overhead wires. It’s not all that different to your standard tram or trolley system. “By far the greatest part of the goods transported in Sweden goes on the road, but only a limited part of the goods can be moved to other traffic types,” said Anders Berndtsson, Chief Strategist at the Swedish Transport Administration, in a statement. “That is why we must free the trucks from their dependence on fossil fuels, so that they can be used also in the future. Electric roads offer this possibility and are an excellent complement to the transport system.” The eHighway will reduce the energy consumption of the freight trucks — as well as local air pollution — by half. The trial of the technology will last two years. 21

TOP EVS

RENAULT ZOE “Range anxiety” is the name for the fear that your electric car will run out of battery, thereby leaving you stranded. It even has its own Wikipedia page. However, French automaker Renault thinks it has come up with the solution to the problem — and its name is Zoe. The new and improved Renault Zoe debuted just prior to this year’s Paris motor show, and it has boasts some impressive specs, not least of all the ability to travel up to 400km, or 250 miles, on a single charge. That exceeds the Tesla Model 3’s advertised range of 345km. Renault claims this is the longest range of any mainstream electric vehicle. Naturally, the ultra-efficient Zoe comes with a marked up price tag: it’ll set you back an extra €3,500. And all that power comes with some added weight, too. The battery weighs almost double what it did in the original model, which had a range of roughly 150 miles. “We are breaking psychological barriers with the range … 300km [186 miles, the car’s expected range in suburban environments] is a real threshold in the mind of the people,” said Eric Feunteun, Vice-President of Renault’s electric vehicle programme. 22

November 2016

4 E V S C H A N G I N G T H E W AY W E M O V E

TOP EVS

PROTERRA CATALYST E2 Last month, Silicon Valley-based EV manufacturer Proterra debuted its Catalyst E2 vehicle, which boasts an impressive range of 194 to 350 miles on a single charge. And it’s a bus. This means that the Catalyst E2 will be able to travel almost every US mass transit route without having to stop to recharge. Proterra has already sold over 300 of its earlier electric bus models to 35 different municipal, university and commercial transit agencies across North America. The company’s newest offering will set prospective buyers back a cool US $800,000, but the bus’s zero fuel needs and low maintenance requirements should help to soften the ‘sticker shock’. “Proterra’s primary goal has always been to create a purpose-built, highperformance electric vehicle that can serve every single transit route in the United States. Today, with the unveiling of the Catalyst E2 Series, that goal has been achieved,” said Ryan Popple, CEO of Proterra in a statement. “The question is no longer who will be an early adopter of this technology, but rather who will be the last to commit to a future of clean, efficient, and sustainable mobility.” 24

November 2016

4 E V S C H A N G I N G T H E W AY W E M O V E

TOP EVS

November 2016

4 E V S C H A N G I N G T H E W AY W E M O V E

SIEMENS ELECTRIC FERRY In 2015, the world’s first electric ferry set sail between the villages of Lavik and Oppedal in Norway’s Sognefjord. The vessel, called Ampere, is propelled using battery technology developed by German manufacturing giant Siemens. One lithium-ion battery is stored aboard the ferry itself, with two more fixed to the respective piers at either side of the crossing. Ampere was the end result of a competition launched by Norway’s Ministry of Transport and Communications in 2011 to develop a clean method for ferry transport. In late September, it was announced that two additional electric ferries have been commissioned in Norway, this time to sail the E39 Anda-Lote route on the country’s west coast. The vessels will have a cargo capacity of 120 cars, 12 trailers and precisely 349 passengers. The new ferries will commence operation in 2018. Siemens will again install an integrated electric power and automation solution aboard both of the ferries. The company’s electric propulsion solution, BlueDrive PlusC, includes lithium-ion batteries for energy storage and thruster and remote control for the propellers. The ferries will also benefit from an integrated alarm and monitoring system and an energy management system.

Driving value in the digital economy Written by Sarah Megginson Produced by Josef Smith

A cloud-based marketplace for modern business, SAP Ariba enables simple yet intelligent exchanges between millions of buyers and suppliers. But it’s much more than sourcing and procurement software: as a platform that drives value as its core function, SAP Ariba aims to transform businesses for the digital economy

very day, millions of companies use the SAP Ariba Network to manage their business relationships and allow their customers to shop, share and save. As a cloud-based business network, SAP Ariba enables users to discover, connect and collaborate around more than $1 trillion in commerce every year and build, manage and deepen their B2B relationships. Or more accurately, as SAP’s Lorraine Longato explains, “We don’t sell software, we deliver business outcomes.” As the Value Engineering Director

November 2016

– Procurement & Business Networks in ANZ at SAP Ariba, Lorraine is part of a team that delivers strategic advice to their major customers, with an overall goal of streamlining business analytics, improving procurement processes and engaging with the digital economy at an optimal level. “We have a structured methodology that we follow, which is centred around value with the customer at the core,” Lorraine explains. “The organisations we work with are all at different stages of their digital transformation. Some are

AUSTRALIA

w w w. a r i b a . c o m

November 2016

AUSTRALIA

small and nimble and can change quickly. Others are undergoing a huge transformation by working through a multiyear program of change; if you’re a big Fortune 500 company, then it’s important to plan for longevity.” Lorraine, who began her career in engineering, takes her role as a trusted professional procurement practitioner very seriously, as she knows precisely what is possible with optimal systems and technologydriven strategies in place. “We become strategic, trusted advisers, helping our clients by guiding, advising and collaborating with them to streamline their analytics and procurement process,” she says. Take the example of Malaysiabased Alphamatic Systems Sdn BhD. As a largely manual, paperbased business, they realised their old-school procedures and systems were hampering their growth and moved to digitise their operations by joining the Ariba Network. The company started by collaborating on purchase orders and invoices electronically with its customers, and soon set up an

online catalogue showcasing its products and services. As a result of its efforts, Alphamatic has seen revenue from its largest customer increase by 40 percent, while its payment cycles cut in half. Closer to home, a SAP Ariba/ Deloitte collaboration was recently successful in combining both a leading cloud-based software solution with deep procure to pay industry knowledge and experience, resulting in two significant joint engagements with a large Australian health insurance provider and public sector transportation organisation. Meanwhile in the utilities sector, SAP has worked with many providers such as Ausnet Services, AusGrid, and Synergy. Ausnet Services operates an electricity and gas energy network in “a dynamic environment that is characterised by regulatory changes, technology advancements and shifting customer behaviours and values relating to their energy usage”, says Cor Van Der Scheer, Procurement Processes & Systems Manager. “Ausnet worked closely with SAP

w w w. a r i b a . c o m

Ariba as we implemented our new ERP platform with a view to achieve transactional efficiencies, while greatly enhancing the way we manage the energy network asset base,” Cor says. “The most significant contributor to achieving that goal was our opportunity to leverage the Ariba Network integration with both our Plant Management (PS) and Project Management (PM) modules in SAP and our significant key suppliers. The combination of work order to purchase order automation in SAP, generated from the work orders, transmitted to suppliers through the Ariba Network as well as receiving Service Entry Sheets from suppliers through the same medium. This automatically integrated into SAP natively and created both an efficient and effective end-to-end process management enhancement. This type of system integration use is amongst the very first instances in the world, enabling us to stay ahead of the game on a technology platform to harness benefits back into the business.” She adds, “The innovation delivered through the cloud and improved

November 2016

integration into SAP ERP coupled with the desire to assist their customers realise value from their investment make SAP Ariba the leader in its field.” Undoubtedly, superior technology equals greater efficiency and in the utilities sector in particular, it’s imperative to turn to an optimised and efficient digital platform, Lorraine says. “The Australian Chamber of Commerce recently released a report about which sectors are growing, and utilities and professional services are the last two on the list. There is no forecast of growth. So by helping them to define value and simplify the way they do business, we can help them leverage what they have to improve their overall operations,” she explains. The SAP Ariba team is passionate and proactive about transforming businesses to maximise returns in a digital economy, Lorraine adds, that they are currently “releasing an innovation every quarter to scale and grow in this environment”. “Our goal is to understand how we can improve our clients’ processes and programs, to minimise their cost to transact and to do business more

efficiently. That way, they are able to deliver more to their bottom line, saving funds for the public sector that can be better deployed to front line services that make a real difference, or in private sector return savings that directly translate to P&L benefits and in turn shareholder value and/or dividends. It’s a compelling position,” she says. “When I think of how procurement has changed over time, it’s interesting – we have actually challenged most of the people in our team to stop using the word procurement, as we’re fundamentally involved in a company’s total financials. It’s commerce across the board, and our toolset with a collaboratively established sustainable business case offers a quick way to find and drive value.” Leveraging Ariba’s technology is not just about driving efficiencies and improving productivity, however; it’s also about creating transparency and building organisational reputation. This is achieved through a commitment to sustainable procurement, finance and business practices. Every C-level executive and or shareholder has a vested interest in transparency,

November 2016

governance and value, delivering on all these key criteria with a simplified user experience ensures business integrity and continuity. In a digital world where the rate of change is constant, and fraud and cyber security risks prevail, it is imperative to have a business benefits plan, an implementation road map, change management process defined and a collaborative environment where these benefits can be maintained and sustained over time. Interestingly, Lorraine was head of sustainability in one of her previous roles. By applying her end-to-end operational engineering with her sustainable procurement experience, Lorraine is able to get right to the heart of the matter, which centres on the fact that technology and sustainability essentially go hand-in-hand. “We have a lot of sustainability initiatives, not just around our environment but also around people and programs. One is our One Billion Lives initiative, which involves combining SAP, our products, our people, our passion and our time to engage with NGOs, government agencies and our ecosystem to

deliver social outcomes in various areas, including health, education, and disaster and emergency management,” Lorraine says. One major project commenced in March 2016, when the SAP India team pitched their One Billion Lives Cancer Research Project. Dr. Ramesh, a seasoned oncologist, highlighted the need for a solution to consolidate cancer patient data, in order to prescribe the best treatment and medication for each cancer patient in India. “As a survivor of cancer, not once but twice, it’s important to me to be associated to an organisation that aligns with my personal values and beliefs. Of which finding a cure for cancer resonates,” she says. The project is data collation, analytics and insights. To date, SAP has built a Proof of Concept and it’s now in testing phase – putting the project well on track to reach the initiative’s overall goal to change one billion lives, this is only one amongst many to really impact lives and make a real difference. Taking the concept of sustainability one step further, Lorraine says it’s

SAP Ariba and EY: The powerful joint venture driving digital value EY and SAP Ariba have come together to advance our clients’ digital strategies. In collaboration, we have been experiencing regional and global success by coming together early in engagements, thus harnessing benefits and fostering transparency with customers. EY’s unique offering is its business integration approach, which takes a functional view of capability, rather than just a systems view. A business integration approach considers the required business outcomes and improvements to enable a better way of doing things, now. In the future, this approach will provide a platform for organisations to adopt continued automation and digitisation as it evolves. EY and SAP Ariba have commenced work with a global consumer products company to provide its digital support journey. As a direct result, the company saw considerable improvements across productivity of the source-to-settle cycle, and it made their journey “Run Simple”. It is not just about introducing a more streamlined way of buying things. It’s also about planning for future automation and providing a new way to collaborate with suppliers, all powered by the SAP cloud. The power of having the business advisor and software solution provider working together can help our clients to get real value and results from their investment.

Catherine McCourt Partner, Advisory at EY

w w w. a r i b a . c o m

Lorraine Longato Director of Value Engineering, Procurement LoB (for ANZ)

Lorraine Longato joined the SAP Procurement LoB team to lead the Value Engineering (VE) function for the ANZ region. The VE team works closely with our major customers to streamline business analytics and improve procurement decision making, by delivering strategic advice, undertaking program planning and business case analysis. Longato has nearly 20 years industry experience across a range of sectors covering FMCG, Manufacturing, Supply Chain, Heavy Freight & Logistics, ITC Management Platforms, Energy and Sustainability, with the past seven years focused on Strategic Procurement and Change Management Initiatives. Longato has strong industry networks, having held roles representing industry and both the public and private sector. Lorraine is also an active contributor to procurement associations, including the Faculty Round Table, CIPSA, PASA and Procurious (Foundation Member). Her broad operational experience, coupled with her strategic procurement background and qualifications, enables her to develop and facilitate cradle-to-grave programs, yielding savings and efficiencies throughout the ANZ region.

AUSTRALIA

crucial to also consider brand longevity. “You have to think about every aspect of your procurement journey because these days, people are very savvy. People are on devices 24/7 and they know everything about your business. They demand transparency and if you don’t align with these growing winds of change, you are isolating yourself,” she says. “The world is a fast-moving place and reputational risk is now first and foremost a priority as part of the procurement function. There are a number of supply chain risks, such as slave labour in the supply chain or fraudulent behaviour. The information is out there, we can source it for you in one place - Ariba. There are no excuses for not knowing what’s going on with your supply chain and there should be no knowledge debts, because technology has enabled us to understand every link in the chain.” Embarking on a digital transformation journey requires you to know of these trends, Hyper-connectivity, Big Data, Cloud, Smart Devices and an awareness of Cyber Security risks enables us to map together with our

clients their capacity and capability gaps. This enables us to collaborate to define their road map towards benefits that will optimally leverage technology within their own organisation. It needn’t be as drastic or confronting as you may expect it to be, Lorraine adds. “From our perspective, it’s about enhancing what you’ve got, rather than ripping everything out and replacing it. We start by asking: Why, then Where do you want to be, and where are you now? Our job is to work with you to get from here to there and that conversation is always based on value delivery,” she says. “What we do as a value engineering function is to define value in what we call the four value levers: price reduction, compliance, process savings and cash position. We also have a value realisation team, they have a process around full life cycle analysis to deliver maximum value constantly. As we said previously, you don’t buy our software – you buy a business outcome.”

w w w. a r i b a . c o m

SMART FILTER TECHNOLOGY

MANN+HUMMEL has recently opened its IoT lab in Singapore, a hub for digital innovation that will boost technological expertise and cement the companyâ&#x20AC;&#x2122;s position as global leader in filtration

Written by Tom Wadlow Produced by Josef Smith

MANN+HUMMEL

in the future, smarter. The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, and technical plastic parts, as well as filter elements for vehicle servicing and repair. For mechanical In the filtration industry, MANNengineering, process engineering HUMMEL is leading the way and other industrial applications, in digitisation, innovation and the company’s product range embracement encompasses industrial filters, of IoT. Already “In two years’ time I want all membrane the leading filter producer parts of the organisation to be filters for water and supplier on a digital roadmap or path” filtration and filter systems. in the world, – Nicolas Payen, MANN+HUMMEL In the last the company Group’s Director of IoT Lab years, due the manufactures growing concern associated with more than 700 million filter elements reductions in air quality, the group each year – elements with the is developing an extensive range potential to become smart. of air filters for various applications Its 20,000-strong workforce like cabin filters, air purifier filters, across more than 70 locations worldwide help to produce and and filters for HVAC system. With sell about €4 billion-worth of such solutions, buildings and filter products each year, helping transportation systems are able automotive and mechanical to provide the right air quality to engineering industries become their occupants and so at the cleaner, more efficient and, lowest energy cost. This is also ndustry 4.0 and the Internet of Things (IoT) is everywhere. The digital economy is impacting upon almost every individual and business’s lives, from smartphonecontrolled central heating to M2M communication on production lines.

November 2016

AUSTRALIA

MANN+HUMMEL

an opportunity for the group to help build a healthier society. Determined to maintain its position as worldwide filtration leader, MANN+HUMMEL is moving fast. With the acquisition of the Affinia Group earlier this year around 4,500 employees, some 10 locations and approximately €900 million in sales had joined MANN+HUMMEL. But it is the addition of expertise, in the form of a dedicated IoT lab in Singapore, which will continue to set the company apart in years to come.

November 2016

A unique challenge

Nicolas Payen is MANN+HUMMEL Group’s Director of IoT Lab. Having spent several years at Schneider Electric working on innovation projects, Payen moved to Singapore last year and has overseen the development of MANN+HUMMEL’s Centre of Excellence for IoT. A global pioneer in smart cities, Singapore has a thriving smart technology hub and has been base of Asia operations for the company for more than four years. “I have been here a year but there

AUSTRALIA

is certainly much more I could learn about the place,” Payen muses. “I joined MANN+HUMMEL at the end of March as this presented a unique entrepreneurial challenge for me, something that had to be created completely from scratch. “There are a lot of challenges but with that come a lot of potential rewards. This is a great opportunity for me to make a real difference and apply the knowledge I have picked up through my career. The team is in place and the lights are on, but it is too early to

“We need to create a network of people from inside to company who understand how the lab can drive forward their own parts of the business” – Nicolas Payen, MANN+HUMMEL Group’s Director of IoT Lab

w w w. m a n n - h u m m e l . c o m

F U LT O N H O G A N

November 2016

AUSTRALIA

already entrenched across suggest the job is done and that the multinational, multifaceted the rewards are there just yet. business, it is Payen’s job to “The economy and industry of communicate the digital innovation today are embracing technology ethos that will be harnessed at a rapid pace, and we have to be by the Singapore lab, bringing ready to bring technology into our together all parts of the business industry where it makes sense to do to embark on an IoT journey. so. How do we use electronics and “One of the main challenges I software and blend it with our have been working on is current knowledge on communicating what filtration, knowledge which spreads right we are doing in the around the world? lab with the many That is the question business units in we are always MANN+HUMMEL,” asking ourselves.” he explains. “We need Number of employees The lab officially to create a network of at MANN+HUMMEL opened on July 11 in people from inside to the Fusionopolis Tower company who understand in One North, the heart of how the lab can drive forward Singapore’s burgeoning start-up their own parts of the business. community. It marks an era where We have a very strong support digital innovation very much sits base in the form of our top management in the company alongside MANN+HUMMEL’s foundational set of values by which it – our Group Vice President Technology,our CEO, and the operates, known as FILTER (Focus, chairman of the supervisory board Integrity, Leadership, Teamwork, are right behind us and helping the Excellence and Respect). project to create momentum. The With the FILTER values

20,000

w w w. m a n n - h u m m e l . c o m

main priority for us is to understand the needs of our business units, which we treat almost as our own customers, and then to understand what their customers need. However, we don’t lose sight of the fact that there is a balance to be struck in terms of executing our own IoT vision, while at the same time being pragmatic and designing what our customer wants.” Next level

Payen already has 30 projects in the pipeline, with 10 being actively worked on by the lab team, currently made up of five to 10 locallyrecruited technology experts. The lab’s work in digitisation will impact the business and filtration industry in three major ways: how filters are made; how filters are sold and how filters are used by customers and consumers. “IoT encompasses a very broad range of possibilities, and this means we must be flexible with the work done in the lab,” Payen adds. “This will of course depend on the customer,

AUSTRALIA

what their demands are and how we can enhance their value chain.â&#x20AC;? One area of focus for the MANN+HUMMEL lab at the moment revolves around maintenance and filter replacement. Information and data farmed through IoT and displayed to customers through connected devices will be able to inform users when filters are likely to need replacing. Payen also revealed that the lab team is looking at smart solutions for the air filtration sector, where the company provides products for automotive and construction partners. In time the lab will become a showcasing facility for MANN+HUMMEL, demonstrating to existing and potential clients what the firm has to offer away from conventional filters and parts. As the team expands, it will the base of expertise from which MANN+HUMMEL can draw upon. The company already has partnerships with universities in South East Asia, Germany and the USA, and will be interacting much more with disruptive start-ups and

Nicolas Payen Director of IoT Lab French national, Nicolas Payen has 15 years of experience in both engineering and marketing/commercial leadership roles. He started his career in the IT services industry as software engineer. His IoT journey started in 2008 as the co-founder of a corporate start-up for Schneider-Electric to develop a Smart Homes / Smart Grid solution. In 2013, he moved to Hong-Kong to head the Smart Space Category for Asia Pacific. In March 2016, he joined MANN+HUMMEL to support its digital transformation and lead its IoT initiative. He has a deep interest in social and technology innovation. He lived in France, Netherlands, Sweden, Hong-Kong, and Singapore.

w w w. m a n n - h u m m e l . c o m

MANN+HUMMEL

“The economy and industry of today is embracing technology at a rapid pace, and we have to be ready to bring technology into our industry where it makes sense to do so” – Nicolas Payen, MANN+HUMMEL Group’s Director of IoT Lab

IoT specialists in the near future. With 30 projects already on the table, the temptation to press full steam ahead must be there, though Payen exercises sensible caution at this early stage. “We have an agreed plan of direction with the Head of Technology for the coming months, and it is important to stay focused and understand that the mission of the lab will change over time. Today, we do not have a dedicated portfolio of digital products – over time this will be developed and there will be a need for a team to manage this new portfolio. The lab may have a role to play in this. “It is important to stay focused in the near future and not to grow too fast – we must get it right to maintain our leading position in the industry. In two years’ time I want all parts of the organisation to be on a digital roadmap or path.”

Enabling Growth

Through Relevance Written by Nell Walker Produced by Matthew Pepper

CIO Jeff Carvell discusses his responsibility in transforming an information management function, and the challenges involved

or the leader of an information management (IM) function, there’s a balance between what the organisation can achieve through technology, what the organisation must achieve to enable its strategic objective, and what the CIO might like to bring. Being focussed on continued relevance can unlock the opportunities IM leaders covet. Jeff Carvell, CIO of InterOil, has 25 years of IM experience behind him. He has led IM functions in both SMEs and MNCs, worked at a number of global locations, and been responsible for IM development across many industries. “I like the challenge of an IM function that’s broken and needs work, especially in companies that are on the edge of their own transformations,” says Carvell. “I’ve worked in manufacturing and financial services, then more recently mining, and now oil

November 2016

and gas. There’s always more that IM could for the business, and that seems to hold true across multiple sectors.” When setting the strategic direction for the function at InterOil, the prioritisation of business demanded that initiatives ahead of self-improvement became an essential exercise. Understandably, the business expected that the IM function was ready to support the broader organisational transformation. In fact, there was a lot to be achieved in order to become effective. During the first quarter of 2014, a strategy was approved for reinventing the IM function from a cost consumer to a strategic enabler. The strategy was underpinned by three objectives, each aligned to a fiscal year planning horizon. Each tactical step moved the function closer to success. An early starting point was to record

ENERGY

“The IM function has worked hard to earn its place as a high performing and relevant part of the business” Carvell, w w w . i n t e r o i–l .Jeff com 5 7 CIO

SpeedCast is a leading global satellite communications and network service provider, offering highquality managed network services in over 100 countries and a global maritime network serving customers worldwide. With a worldwide network of 43 sales and support offices and 39 teleport operations, SpeedCast has a unique infrastructure to serve the requirements of customers globally. With over 5,000 links on land and at sea supporting mission critical applications, SpeedCast has distinguished itself with a strong operational expertise and a highly efficient support organization. For more information, visit www.speedcast.com

sales@speedcast.com | Tel: +852 3919 6800 Unit 2405 - 8, 24/F., Dah Sing Financial Centre, 108 Gloucester Road, Wanchai, Hong Kong

ASIA

the current state and to put in place a process for ongoing measurement of maturity in capability. It was important to bring together both empirical data and customer perception. “At the start we received the brutal facts about our performance” Carvell says. “However, there was support for our continued willingness to treat feedback as a gift, and to learn from that”. It soon became clear that information management was in many ways disconnected from the business and was not prepared to meet demand unless structural changes were

applied. Taking a step back to observe, it became clear the IM team spent most of it’s time firefighting. There was little specialisation and while there was tacit knowledge of technical solutions, the frequent outages were symptomatic of being out of control. The first financial year objective was therefore to stabilise operationally, and included a program of technical changes. These tactical steps were carefully chosen to upgrade foundation services as soon as possible. The drive to stabilise as quickly as possible allowed a return to

w w w. i n t e ro i l . c o m

Your Uptime is Everything

AllcomMcr PNG, part of Digicel Business, are a Port Moresby based systems integration organisation specialising in ICT Products, Services and Support. Web: www.allcommcr.com.pg | Email: sales@allcommcr.com.pg

Worldwide experienceâ&#x20AC;&#x201D; targeted delivery. Geoservices, a Schlumberger company, is the world leader in surface logging and operates in more than 50 countries. With more than 50 years of industry experience, Geoservices offers a range of technologies and services enhancing drilling performance in real time, providing a detailed assessment of hydrocarbon reservoirs and optimizing field exploration, development and production.

Find out more at

slb.com/geoservices Copyright ÂŠ 2015 Schlumberger. 15-GS-18230

October 2016

ASIA

the real prize: enabling the business. Not fighting fires allowed InterOil to get to the starting line. Next was to design services, set service levels, and implement an ITIL-based service delivery model that would operate in the back of house. IT solutions company Empired was chosen on a number of winning criteria, and overall represented the best fit for the size of the organisation. “In front of the customer, there were many places where our service levels were failing,” admits Carvell. “Sometimes due to the language we used, sometimes due to our lack of humility, and in large part due to a mismatch of what we provided compared to what the business needed. One example was the need for 24/7 support, but most important was the overwhelming request to talk to a person. “At the time it seemed revolutionary – building a customer service delivery model that is humanistic, understands the business, oversees the engagement end to end, is placed onsite, and is next to the customer. Each of these requirements was built into a delivery model for the front of house internal team called ‘wantoks’

in Tok Pisin, Papua New Guinea (PNG), meaning literally ‘one talk’ but culturally meaning a person close to you, to whom you give complete loyalty and with whom you share common values. The team came up with the name as a way of explaining the newly positioned support team on the ground; it was a winner.” To implement a complete service delivery model required building strong links between the various outsourced service delivery partners and the internal team, between the IM function and the business, and ensuring the wantoks were fully trained in their new role. To implement this service delivery framework, project management consultancy PM Partners ran a dedicated program. In order to deliver rapid resolution of technical issues when they arose, it was necessary to have in place access to on-the-ground engineers as dedicated resolver groups. Onsite in the field, at small and large logistics bases and in the office locations, the wantoks were supplemented by onsite infrastructure management resources. In Singapore, Empired provided this support while in PNG, Allcom MCR was chosen as the w w w. i n t e ro i l . c o m

Tomorrow’s advantage, delivered today Empired is an IT Services provider with a broad range of capabilities targeted at delivering enterprise IT solutions that improve efﬁciency, productivity and competitive advantage for our clients

www.empired.com | contact@empired.com

ACCELERATED RESULTS... As organisations face incomparable and increasing levels of disruption, there is a growing emphasis placed on innovation, speed-to-market and accelerated delivery. As a leading project management consultancy, our focus is on helping you achieve rapid results with minimal disruption whilst reducing risk.

Find out why leading brands trust us to run over $1.7BN of projects. Each and every year.

+65 6635 1389 www.pm-partners.com.sg info@pm-partners.com.sg

trusted service delivery partner. With the stabilisation phase complete, it was time to take the steps towards becoming world class. In the second fiscal year the IM capability needed to mature further in accordance with targets set after the original maturity assessment. Again, a series of high business benefit projects and initiatives were slated. To be world class the IM solutions needed to be at least industry standard and as good as our industry peers. The changes required included a lot of standardisation – of hardware models, software titles, configuration, and security – actually right through the technology stack. In the field, achieving a high level of availability in site connectivity had been challenging VoiP telephony, data acquisition and application performance. An end to end solution design was required which upgraded equipment and applied some hard learned lessons. “The nature of field operations is that it constantly changes,” Carvell says. “Technology in field operations needs to be standardised in design and build, yet portable for

ASIA

mobilisation and demobilisation. The demands are always increasing”. A containerised solution was not a new industry concept, but the brief was that the standard design would include what had been learnt over time. The solution needed to be standardised, include VSAT connection redundancy, provide safe operation during assembly, maintain tight engineering control, achieve helicopter portability under a max weight of load constraint, rapid mobilization and demobilisation, as well as remote connectivity monitoring – all underpinned by field support. This was developed in collaboration with network and satellite communications service provider, Speedcast. A further challenge to solve in the

field was the reliability of internet connection for data acquisition. At each rig site, oilfield service business Geoservices Australasia Pty Ltd, was required to maximise the drilling investment through appropriate decision-making. Historically, the bandwidth demands of corporate traffic and acquired data were impacting each other, and from a service model point of view represented an unnecessary dependency. Working closely with Geoservices, a design was established for standalone infrastructure to support mudlogging. Geoservices prepared a standard solution, developed mobilisation and demobilisation processes, and integrated the

“At the time it seemed revolutionary – building a customer service delivery model that is humanistic, understands the business, oversees the engagement end to end, is placed onsite and next to the customer” – Jeff Carvell, CIO

w w w. i n t e ro i l . c o m

November 2016

ASIA

solution with the on-the-ground engineers. Having delivered the world class objectives, the next series of steps were designed to deliver something world-leading. In order to say the business was leading peers, the application of technology needed to be at the front of what was possible. While InterOil has focussed on data management, the confidentiality, integrity and availability of data has improved. From initially having islands of data, today data is synchronised globally, secured, and available when offline. A single corporate DMS provides the core document and records management solution and as an extension, controlled documents are published to the intranet both inside and outside of the corporate management system. The objective of always having the latest version and a single source of truth has been met. “We’ve taken the function through to the targeted maturity,” Carvell says, “and improved the quality of what we do, but also rebuilt the entire IM service offering. In the past 24 months we’ve gone through significant change. “From initially achieving reliability, then becoming industry comparable and finally a strategically aligned enabler, the IM function has worked hard to earn its place as a high performing and relevant part of the business”.

w w w. i n t e ro i l . c o m

Sustainability is at the forefront of

SCT&E LNGâ&#x20AC;&#x2122;S NEW FACILITY within LOUISIANA

Written by Catherine Rowell Produced by Tom Venturo

SCT&E LNG, INC.

SCT&ELNG is constructing a $6.9 billion Liquefied Natural Gas (LNG) Export Terminal within the State of Louisiana, providing an environmentally-friendly and clean fuel source to the global energy mix with an increased emphasis on sustainability

ompanies worldwide are increasingly tasked with finding cheaper, more sustainable energy sources that will reduce increasing levels of environmental pollutants while continually meeting the demands of its growing consumer base. Originally established by Southern California Telephone Company, SCT&E LNG is now globally renowned as the developer of a 12 mtpa natural gas liquefaction and LNG export facility on Monkey Island in Cameron Parish, Louisiana. The company’s innovative and technical innovations in providing sustainable and affordable natural gas via LNG to countries in need of clean burning and inexpensive

November 2016

energy solutions has been globally recognized, at which the company has been recently nominated for the CWC Asia Pacific LNG Innovator of the Year Award for its unique 20year fixed price LNG supply offering, a first of its kind in the industry. “The United States has an abundance of clean natural gas, and there are places in the world that are in desperate need of clean fuels, rather than pollutants which we are currently experiencing. SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it,” explains Eric Smith, Executive Director of Business Development. SCT&E LNG’s unique 20-year fixed price option is just the beginning of the company’s innovative offerings

ENERGY

in the industry. According to CEO Greg Michaels, the company is “currently working on crafting LNG supply deals based on exotic indexes, something no one else has been able to achieve before.” Multiple natural gas pipelines are located close to the 246-acre project site, which will allow natural gas to be collected and treated effectively in order to go through the liquefaction process where the gas will be cooled to -162°C (−260 °F) degrees. The LNG will then be placed within three onsite storage tanks situated alongside three LNG trains incorporated into the SCT&E LNG development. The storage tanks will hold around 160,000 cubic meters of LNG supply each, which will cater to the increasing demand for clean burning fuels, and can be utilized for a multitude of needs, from commercial and residential use, to industrial and transportation services. While innovation is a key distinguisher of SCT&E LNG’s business philosophy, pursuing “proven” strategies, technologies and locations is also a fundamental

about Strategically located on Louisiana’s Calcasieu Ship Channel, the future SCT&ELNG facility sits approximately 2.5 miles inland from the Gulf of Mexico. The project site is located near the heart of the U.S. natural gas intrastate and interstate pipeline systems, just miles from major gas pipeline interconnections. SCT&E LNG has received Order No. 3566 from the Department of Energy granting them a 30year authorization to export approximately 1.60 billion cubic feet per day (bcf/d) of natural gas, or approximately twelve (12) million tons per annum (mtpa) of domestically produced LNG, by vessel from the proposed SCT&E LNG Export Terminal to countries with whom the United States has a Free Trade Agreement. SCT&E LNG also has a nonFTA application on file with the DOE that is pending approval.

w w w. s c t e l n g . c o m

SCT&E LNG, INC.

aspect of its business model. Louisiana already has a robust infrastructure in place and has garnered strong community and government support. The $6.9 billion SCT&E LNG development will provide over 1,500 construction jobs, boost the US economy and has garnered widespread political support. Louisiana is also currently the third natural gas producer and the ninth crude oil producer in the nation. â&#x20AC;&#x153;Our facility will have a direct positive impact on the health of tens of thousands of people where our

November 2016

gas will be consumed as well as contribute to the health of the global environment,â&#x20AC;? adds Michaels. The SCT&E LNG project is headed by a strong executive team of energy professionals with vast experience within the LNG and EPC industries. Vice President of Engineering, Scott Ray, has extensive knowledge and vast experience in designing and constructing a number of LNG liquefaction facilities globally, in addition to commissioning five LNG trains and seven cryogenic storage tanks. With over 27 years

ENERGY

of experience in Engineering, Construction and Procurement (EPC) industry, Ray’s expertise compliments that of Smith, who is currently developing the project’s commercial and business development strategies. “Our strategy is to have the most knowledgeable team of people with a high level of industry experience directly related to developing projects like ours. We run with a lean team to maintain staying power through the development phase, and to bring results and return on investment to our partners”, explained Michaels. Running lean is a fundamental factor in SCT&E LNG’s continued success, and the project has been able to achieve several key milestones

at the fraction of the money spent by other, more heavily funded projects. Michaels explains, “We are careful with our capital and understand what an important tool it is. We operate under a “waste nothing” mentality and negotiate with every contractor aggressively. We listen intently to our advisors and contractors, then apply their recommendations based upon our team’s extensive experience. We approach our customers/ offtakers with the mindset of best supporting their needs. The response from offtakers on our commercial innovation, proven decisions, and customer service confirms that SCT&E LNG’s way of operating is working.” SCT&E LNG has placed an

“The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most” – Greg Michaels, CEO

w w w. s c t e l n g . c o m

Big LNG expertise. Also available in small LNG plants. Air Products has contributed to the success of more LNG operations than any other company. And we bring our full capabilities to LNG projects of any scale, from peak-shaving plants producing less than 0.1 MMTPA to the largest base-load facilities, on land or off-shore. Our LNG team can help you get a plant up and running at the highest efficiencyâ&#x20AC;&#x201C;on time, on budget, and in any climate. To learn more, call 800-654-4567 (US), 1-610-481-4861 (worldwide) or visit us online.

tell me more airproducts.com/LNG

ÂŠ Air Products and Chemicals, Inc., 2016 (39969)

39969-LNG-Expertise-196X137-ad.indd 1

Built to deliver a better world

As a fully integrated firm, AECOM draws from its pool of experts to help communities thrive. We offer our oil & gas clients comprehensive enabling infrastructure services including planning, development, design, permitting, construction, and commissioning to develop sustainable and fit-for-purpose solutions.

aecom.com

8/19/16 3:01 PM

ENERGY

increased emphasis on fulfilling what for the SCT&E LNG project. has been titled the “second wave” of “The long term, global benefit of our LNG demand, which is predicted to facility is the improved environmental begin in 2023 and rise thereafter. This impact it will have in places, such prediction coincides with the timing as China and India, where coal is of SCT&E LNG’s being used as a signed Natural Gas primary fuel source Supply Agreement, and resulting negotiated by in high levels of Michaels, which pollution in the begins at the atmosphere,” adds commencement Michaels. “This of the facility’s pollution is causing operations around devastating health 2023 and ensures consequences for a 20-year fixed the communities, price for the supply and natural gas of LNG for SCT&E fueled energy will LNG’s customers. work to greatly This agreement improve the air has enhanced quality of these the appeal of the countries.” Natural facility’s LNG for – Eric Smith, Executive Director gas is known buyers, creating of Business Development to be twice as a competitive clean burning as advantage for the company and traditional energy sources, such as oil its shareholders. Five confirmed and coal, and will provide increased MOUs have been signed to date benefits through the reduction of for a total of 5.7 mtpa of LNG, pollutants regularly emitted. signifying increased momentum A number of key partners have

“SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it”

w w w. s c t e l n g . c o m

SCT&E LNG, INC.

been bought into the project to deliver crucial engineering services and help drive the project forward. Technip has been selected as the Owner’s Engineer for the development and will undertake work relating to the Federal Energy Regulatory Commission (FERC). In addition, Technip has significant experience working with Air Products and Chemicals Inc. (APCI), the liquefaction technology provider selected for the SCT&E LNG project, a relationship that will be advantageous

YEARS OF EXPERIENCE MITIGATING RISK

in successfully moving the project forward through completion. Ray remarked, “We selected the world’s number one LNG technology, Air Products and Chemicals. We’ve done that because it’s proven to be the best technology with the lowest cost for producing LNG.” Ray further adds, “for technology, two gas turbine drivers are currently being considered – one by GE Oil and Gas and the other by Siemens.” The expected demand for clean

Fugro is proud to be a selected partner for SCT&E LNG. We have a proven track-record providing data acquisition, comprehensive project management and risk mitigation. Clients trust our capability providing integrated solutions onshore and offshore to the LNG industry while maintaining world HSEQ standards. Fugro inquiries@fugro.com www.fugro.com

ENERGY

fuels is predicted to triple within the next 20 years, which will yield a multitude of challenges for both suppliers and consumers. Eric Smith explains, however, “the main challenge presently faced in the global market is getting customers to make the switch from coal to natural gas on a long term basis”. He adds: “Coal has historically been cheaper than natural gas, but it’s also extremely bad for the environment. What we’re finding is that the carbon tax being considered in many countries around the world is an attempt to equalize the price of coal with other cleaner fuels to encourage those nations to make the switch to fuel sources that will have less of an impact on the environment.” The company, however, has acknowledged the need to find sustainable solutions that will also benefit the global community while driving the delivery of greener, cleaner energy sources for the world: “A huge driver for us is the environmental impact the increased use of natural gas will have, which in turn affects society as a whole. People would like to have a cleaner

atmosphere because it affects their quality of life, and our project will deliver fuels to these communities that will provide them with their electricity and create a cleaner atmosphere,” concludes Smith. The long term benefits of the project are evident. “The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most”, reflected Michaels. SCT&E LNG are clearly passionate about not only the sustainability and superiority of LNG as an energy source, but also the increased advantages it has over dirtier fossil fuels which the SCT&E LNG development can deliver globally. Strong partnerships will support the delivery and key outcomes, which in turn will effectively support countries in utilizing greener fuel alternatives to provide benefits for the future.

w w w. s c t e l n g . c o m

SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM development of a $6.9 billion natural gas liquefaction facility located in Southwest Louisiana for the export of LNG globally. As Chairman and CEO of SCT&E LNG, he has spoken on LNG issues internationally and is a published author. At the age of 26, Mr. Michaels founded Wholesale Airtime, Inc., now Southern California Telephone Company, one of the few privately-held

Greg Michaels CEO

telecommunications companies to successfully navigate the Telecom Act of 1996 that deregulated the telecom industry in the United States. Early

A lifelong entrepreneur, Greg Michaels

in his career, Mr. Michaels wrote his

completed the highly selective and well

company’s first brief petitioning the

respected Entrepreneurship Program

California Public Utility Commission

at the University of Southern California

(CPUC), who subsequently granted

(USC) Marshall School of Business.

his company’s Certificate of Public

Mr. Michaels majored in Business

Convenience and Necessity, creating one

Administration and completed an

of the first privately-held public utilities

additional pre-medical curriculum. During in the State of California. As a pioneer his four years at USC, he competed of the telecom industry, he developed as a student-athlete on the acclaimed

the process and platforms that allowed

USC Men’s Varsity Tennis Team. After

Competitive Local Exchange Carriers

his time at USC, Mr. Michaels pursued

to interconnect their networks via

a career as a professional tennis player.

incumbent communications providers

Mr. Michaels is a national champion

and contributed to the success of number

and still competes currently. Today,

portability that all Americans enjoy today.

Mr. Michaels is a successful business

Mr. Michaels has capitalized on his ability

leader and is the developer, owner, and

to build successful teams by identifying

operator of a number of businesses

personal strengths in individuals

encompassing telecommunications,

and further developing them. He has

real estate development, energy, and

employed thousands of people and

oil and gas. In 2014, Mr. Michaels

is well respected by his management

established a LNG company for the

teams and personnel. He has bought,

Greg Michaels, CEO

GREG MICHAELS

ENERGY

sold, and started over two dozen

LNG, a company he founded to help fill

companies. A recent acquisition gained

the growing global demand for natural

him a controlling interest in North Energy

gas. Focused on the energy revolution

Central (NEC) www.northenergycentral.

taking place in North America, Mr.

com. The principals of NEC have

Michaels seeks to become an exporter

developed over $5 billion in power

of U.S. natural gas while simultaneously

generation facilities worldwide which

helping the United States become a

include bio fuel, nuclear, and natural gas-

net exporter of its energy. In March

fired power plants fueled

2014, Mr. Michaels led SCT&E LNG, via

by LNG.

the LLC, to acquire approximately 246

Upon acquisition of the controlling

acres of land via a 99+ year (including

interest in NEC, Mr. Michaels took over

the option terms) Option-to-Lease

stalled negotiations with the Dominican

agreement in Southwest Louisiana

Republic government to build a 300

for the development of an LNG export

megawatt gas-fired power plant. Within

terminal. The project is modeled as a 12

months of the purchase of NEC, and

mtpa natural gas liquefaction facility.

leading new negotiations with the state-

In addition to his business interests, Mr.

owned electric utility, Corporación

Michaels’ passion for his community

Dominicana de Empresas Eléctricas

and sense of civic responsibility led

Estatales (CDEEE), Mr. Michaels

him to coach youth soccer and tennis

increased the scale of the project and

for over fifteen years where he parlayed

signed a Memorandum of Understanding

his strengths in talent development

(MOU) with the CDEEE for the

and team building. Mr. Michaels

development of a 400 megawatt gas-fired

successfully led his soccer teams to

power plant and LNG receiving terminal.

earn fifteen division championships and

The total project costs were estimated at

over thirty tournament championships.

approximately $850 million. Mr. Michaels

Mr. Michaels believes, “Success is

negotiated additional terms that included

achieved by helping people accomplish

provisions which allowed NEC to provide

what they never thought possible.” Mr.

the Dominican government with its

Michaels runs all areas of his life by this

foreseeable natural gas requirements.

philosophy. He is a dedicated family

Mr. Michaels and his wife founded

man, husband of 24 years, and father

and 100% own Southern California

of three adult children, one who is a

Telephone Company, a United States

graduate of Cornell University, another

public utility. Mr. Michaels’ latest

currently attending Cornell, and one

endeavor is the development of SCT&E

who attends Pepperdine University.

SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM positions designing, building, and commissioning LNG liquefaction facilities globally, and has engineered and commissioned five LNG trains and seven cryogenic storage tanks to date. Mr. Ray’s engineering career began at MW Kellogg, now Kellogg Brown and Root (KBR), in a program designed to develop young engineers. MW Kellogg was recognized as an international leader in the field of LNG facility

Scott Ray, Vice President of Engineering for SCT&E LNG

design. After completing the MW Kellogg engineering program, Mr. Ray joined a startup team from MIT, Aspen Technology, to develop software for

Raised in an entrepreneurial family

chemical engineering companies. While

in a small town near Pittsburgh,

at Aspen Technology, Mr. Ray was part

Pennsylvania, Scott Ray grew up working

of a team that successfully took the

on farms and developing real estate with

company public. During the time Mr.

his father. His father instilled in him the

Ray worked at Aspen Technology, the

importance and value of hard work and

stock price increased over 400%. He

dedication, and this work ethic propelled

was recognized at Aspen Technology

him to strive for excellence which landed

for making the company’s single largest

him in one of the most prestigious

sale to Fluor, a highly recognized

engineering colleges in the world,

global engineering company. As part

Carnegie Mellon University. Mr. Ray

of the sale, Mr. Ray spent roughly

covered much of the cost of his college

one year at Fluor implementing a

tuition from the proceeds of his real

training program with its employees.

estate transactions. After completing his

Upon the completion of his

Chemical Engineering degree at Carnegie

responsibilities at Fluor, Mr. Ray

Mellon’s College of Engineering, Mr. Ray

rejoined KBR to pursue his passion for

has had a successful 26-year career

LNG development. At KBR, Mr. Ray

in the EPC business. With a focus on

was part of a world-class engineering

world scale LNG projects, Mr. Ray has

and design team that developed LNG

served in a wide variety of leadership

facilities globally, which included

S C O T T R AY

ENERGY

Qatar Gas LNG Liquefaction, Malaysia

of Maryland in the United States. His

LNG Liquefaction, Nigeria LNG

Aker Kvaerner team served as the EPC

Liquefaction, Australia Northwest Shelf

contractor for Cameron LNG, Adriatic

LNG Liquefaction, Sonatrach LNG

LNG, Gulf LNG, and also completed

Liquefaction at Skikda and Arzew, Arco

a number of projects for Chevron and

Tangguh LNG Liquefaction, and others.

ConocoPhillips, among others.

He also led several different studies

During his time at KBR, Mr. Ray worked

and analyses for companies, such as

for eight years with the world’s best team

Trinidad LNG Liquefaction, Angola LNG

for engineering, design, and construction

Liquefaction, and a number of other

of the Air Products and Chemicals,

very significant projects. As a Senior

Inc. (APCI) Propane Pre-Cooled LNG

Process Engineer for KBR, Mr. Ray

liquefaction process. APCI is the number

gained valuable EPC experience and

one liquefaction technology provider

led the process engineering through

globally and is the process selected by

design, commissioning, and startup

SCT&E LNG for its project on Monkey

for several multi-billion dollar LNG

Island. Mr. Ray is currently serving as

facilities, including Nigeria Bonny

the Vice President of Engineering for

Island LNG Trains 2 & 4, Australia

SCT&E LNG and is primarily responsible

Northwest Shelf LNG Train 4, and

for the engineering, procurement,

two trains for Malaysia LNG Tiga.

planning, development, and construction

Because of his work at KBR, Mr. Ray

efforts for the company’s natural gas

was hired by Aker Kvaerner where

liquefaction and LNG export project.

he was effective as first the Business

In addition to his involvement with

Manager, and later the Project Manager,

the engineering and construction

for the EPC of several multi-billion dollar

industry, Mr. Ray is committed to

LNG facilities, such as Cameron LNG,

serving his community. He volunteers

Gulf LNG, and Adriatic LNG. Mr. Ray’s

his time weekly leading a mentoring

valuable contributions were recognized

group for men and rebuilds homes for

at Aker Kvaerner and he was promoted

disadvantaged and elderly people in

to the Director of Business Development.

the Houston, Texas, area. Mr. Ray is

In that leadership role, Mr. Ray’s team

a dedicated family man to his wife of

won the Pre-FEED and FEED contracts

23 years and the proud father of five

that led to the successful EPC bid of

children, three of whom are currently

Dominion’s Cove Point LNG $4 billion

studying at Texas A&M University, and

liquefaction facility off the east coast

two of whom are in high school.

SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM years, Mr. Smith has focused his career in the EPC sector of the energy industry concentrating on large scale energy and petrochemical projects. While developing commercial strategies to pursue and win EPC projects, Mr. Smith gained valuable experience in logistics, proposals, contracts, subcontracts, procurement, and construction. While serving in the United States Air

Eric Smith, Executive Director of Business Development Eric Smith is a motivated and effective energy executive with stellar accomplishments in the Engineering, Procurement, and Construction (EPC) and LNG industries. Growing up in an entrepreneurial family in a small town in Oklahoma, he spent his high school years working for the family furniture business his grandfather founded at the end of the Korean War. After graduating from high school, Mr. Smith joined the United States Air Force working as an intelligence analyst where he served proudly for nine years. Four years into his military service, he was recruited to join the National Security Agency (NSA) to manage multiple intelligence gathering teams supporting Operation Enduring Freedom (Afghanistan and Iraq). His contributions were recognized by the Director of the NSA and the Deputy Commander of the United States European Command. For the last eight

Force, Mr. Smith completed his Bachelor of Science Degree in Marketing and began studies toward a Master of Business Administration (MBA) from the University of Maryland. After honorably completing his military service, he finished his MBA and subsequently began working for the global engineering and construction company, Fluor. Due to his success at Fluor, Mr. Smith was later recruited by Mammoet USA for the commercial role of North American Business Development Manager where he developed and sold project logistics strategies that provided solutions for lifting, transporting, installing, and decommissioning large and heavy structures to EPC contractors and project owners. In this position, he leveraged his entrepreneurial upbringing to create business opportunities previously lacking for the company. Recognized for his contributions at Mammoet USA, Mr. Smith was recruited in 2011 by Foster Wheeler, a well-respected international EPC

ERIC SMITH

ENERGY

firm in Houston, Texas, where he began

13,000 employees. He was promoted

working as a Project Subcontracts

to the role of Senior Account Executive

Manager. His strong work ethic and

in 2014, placing him in an elite group

high-level capabilities were quickly

of energy industry executives who

noticed by senior executives, earning

excel in developing business and

him a promotion and assignment in

commercial strategies to advance their

the business development department

respective company goals. In his last

where he was challenged by the CEO to

year at Foster Wheeler, Mr. Smith led

develop a business plan to penetrate the

a team that supported an early stage

midstream markets. Within 12 months,

LNG developer successfully raise over

Mr. Smith identified and negotiated

$100 million for their LNG project.

multiple master service agreements,

Mr. Smith is currently serving as

generated sole source business

the Executive Director of Business

opportunities, and created strong long-

Development for SCT&E LNG and is

term business relationships for Foster

primarily responsible for the commercial

Wheeler in the midstream market.

development of the company’s

Because of his immediate success

Monkey Island LNG project. Mr. Smith

at Foster Wheeler, Mr. Smith’s

is responsible for identifying and

responsibilities quickly grew to

negotiating LNG offtake sales contracts,

include work in the petrochemical,

raising capital, and developing the EPC

gas monetization, and LNG industries,

strategies for the company. He works

and he was challenged with the

directly with and is a key advisor to both

task of increasing the company’s

the CEO of SCT&E LNG and its Board of

commercial exposure to the North

Directors. His professional experience

American petrochemical and LNG

in the energy industry combined with

markets. Ultimately this business

his ability to quickly build relationships

line became the largest revenue

and develop trust and rapport with

generating division in the company.

colleagues has made him a successful

In 2013, Mr. Smith led an 11-month

member of the SCT&E LNG team and

proposal effort that resulted in Foster

a well-respected player in the LNG

Wheeler winning a $2.4 billion EPC

industry. Outside of his career, Eric is a

project in the U.S. Gulf Coast, the largest

loving husband of eight years and proud

project in the company’s 100+ years of

father of three children. He resides in

business. With this accomplishment, he

Houston, Texas, and spends his free

achieved recognition as the #1 global

time with his family and playing golf.

sales person in a company of over

MOVING FROM P R E S E R VAT I O N T O I N N OVAT I O N

Connectivity is a major and essential component of your digital platform. But your business needs more. So we take a more holistic approach. From front to back, we step up. We take responsibility for the design, build and maintenance. Weâ&#x20AC;&#x2122;re accountable for ensuring your connectivity is not only high performance, but integrated and optimised with your LAN, cloud services, apps and hardware.

virginmediabusiness.ie 1800 924 220