Energy Digital - October 2014 by Energy Digital

www.energydigital.com | October 2014

Mitsubishiâ&#x20AC;&#x2122;s

waste management programs Keeping the

Lights On EDF in Africa

CaliforniA

2050 Will the state go 100% renewable?

Commercial Solar Contractors

editor ’ s comment

California’s Renewable Future I’m a life- long Sa n Diegan who loves his city. I mean,

how could you not? We’ve got perfect weather year round, the best beer on the planet (yeah, that’s right), and the beaches, mountains, and desert all less than an hour away. I want to enjoy my city and all of its beauty long into the future. Thanks to a team of researchers at Stanford University, that just might be possible. They’ve predicted that California could be powered by 100% renewable energy by 2050. This means the state would run on clean, green energy exclusively. Could this be California’s new reality—or is it just a pipe dream? We’ll also take a look at EDF’s efforts in Africa and what the utility is doing to bring energy to those without. It’s an interesting approach, as it balances providing assistance with giving countries the tools they need to tackle problems on their own. Also, you might know Mitsubishi as one of the world’s top car companies, but did you know it’s also a leader in the waste-to-energy field? We feature the company’s efforts toward responsible reuse of its waste—and its attempts to do away with waste altogether. We also have a guest article from Roger Connors and Mattson Newell of Partners in Leadership. Their insightful piece focuses on the impact accountability can have on utilities and it’ll definitely get you thinking about your company’s culture. Finally, we’ll take a look at the top 10 commercial solar contractors working today and what makes them special. While I’m here in California, wherever you are, 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 Keep the lights on

32 Waste Management

More than Just Motors

Top 10 Commercial Solar Contractors

Green Tech California: From Endless Summer to Endless Energy

RENEWABLES EDF in Africa 5

Contents

Manitoba Floodway Authority

Company Profiles Middle East

54 SKA International

SKA International

Compass Solar Energy

112

TORQ Energy

CANADA 68 M anitoba Floodway Authorityâ&#x20AC;&#x2122;s Red River Floodway Expansion Project 78 TORQ Energy 86 Transport Matte 96 M arine Renewables Canada

Transport Matte

USA 104 Century National Bank 112 Compass Solar Energy 120 Adobe Facilities 128 Association: CG/LA Infrastructure Inc.

Brazil 136 Association: ABRAGEL

120

144 Association: ABCE

ADOBE

Australia 150 AJ Lucas 160 TAG Oil

xxxxxxx

104

Century National Bank

America Latina 172 Corporation San Diego

Utilities

Keeping the Lights On Read how one utility made safety and accountability top priorities, and through its use of Key Results, changed its culture for the better Wr i t t en by R o g e r C o n n o r s a n d M atts o n N e w e ll o f Pa rtn e r s i n Le a d e r s h i p

September 2014

UTILITIES In 2009, Oklahoma Gas & Electric (OGE) saw that they needed to change—communication barriers, finger pointing at all levels, and a lack of alignment around their Key Results were all impacting their Culture. This Fortune 1000 company serving 750,000 customers was filled with 3,000 plus employees that didn’t feel that they could make a difference. This, along with ever-changing market conditions in the Utility and Energy industry, caused the leadership team to step back and realize that they needed to do things differently. More starkly, senior executives at OGE faced: Increasing safety incidents, stagnant customer satisfaction, and a tolerable, but poorly trending stock price of $13.58 per share. Any course correction, they believed, would be powered by packing down dozens of measurables into just a few—something they would learn to call “Key Results.” These “Key Results” would need to be results that every one in every role could contribute to—an even bigger challenge. The management team decided on shareholder value and customer satisfaction but then 10

September 2014

put at the top of their list Safety. Reflecting recently on the effort involved, OGE’s director of health and safety, Jerrod Moser, said they set out to create a culture that was “more than something that comes from the safety group. It needed to involve every member, every moment of every day, at work and at home”—a more personal culture. Why? In an industry with just under eight times the fatality rate of others, OGE executives knew that a reduction in Reportable Safety Incidents (RSI) would not only boost employee morale and organizational culture but also add millions of dollars to their bottom line. Since they saw safety as a root issue, one that touched everything they did, reducing RSI was a true Key Result where failure was not an option. Equally historic was the number of initiatives and programs aimed at reducing safety issues that had either stalled or failed altogether— not for the lack of trying but possibly because marshalling 3,000 people to care equally about one Key Result is just hard. Powering Up So how did they get there? Again,

H eadline

Accountability is important in all aspects of an organization—from the board room to the field

it wasn’t easy and took the time and the commitment of the entire organization from the topdown. Here’s the breakdown: First, clearly define Key Results OGE’s leaders and managers were not accustomed to discussing the organization’s Key Results, and they rarely prioritized the most important results they needed to achieve to a few simple, measurable objectives (again, they had dozens of KPI’s that drove their business). Positively, there was a genuine hunger that was evident among the leaders for more conversation about how their jobs,

responsibilities, teams, projects, and priorities could be better aligned with the organization’s Key Results. It’s been said that leadership is defined by results. We think a better version reads: Leadership is defining Key Results. Too many leaders in today’s organizations fail to clearly define, fully disseminate, and adequately discuss Key Results that will focus their organization on achieving their most strategic and most important goals. Ask yourself this question: Do the people in your organization clearly understand the Key Results your organization must deliver to ensure achievement 11

UTILITIES and success right now? Our landmark research and extensive experience shows that 85% of organizations lack clearly defined Key Results, which leads to significant misalignment around key priorities. And nearly everyone—84% of those surveyed— hold their leaders responsible for creating this degree of clarity. Without clarity, confusion leaves

the door open to poor execution and invites counterproductive behaviors. It licenses people to maintain the status quo and to dismiss their accountability for results. It kills momentum because no one feels confident about which direction to move. In the Energy industry, we typically hear these issues come up when we are not achieving Key Results: weather was bad, I had to clock-out, I didn’t get

You Get What You Create Accountability For Accountability begins with clearly defined Key Results. What you create accountability for is what you get; and what you get is what you created accountability for. That is resoundingly true when it comes to holding others and ourselves accountable. What we hold ourselves accountable for is what we get. Or, in other words, what we take ownership for is what we get. Taking ownership is a critical step, and it can also be a difficult one. Making the tie between our own actions and the results we are getting, particularly when those results are not what we want, can take some real heart. Here are some questions you can ask yourself to help you make the tie: 1. What am I pretending not to know about the impact of my role in the outcomes I am getting? 2. What are the extra steps that I would take next time when faced with similar circumstances? 3. What advice would I give someone else about how to move forward when faced with the same set of conditions? Taking ownership for the results you want to get by making a complete, full, and personal commitment to achieving them is an investment that will pay huge dividends. Tip: Try sitting down with someone you trust and discussing your ownership for issues keeping you from achieving your Key Results.

September 2014

K eeping the L ights O n

the email, it’s the government’s fault, and on and on the list goes. You can see how this could be an issue and demoralizing to the organization. By contrast, a clear focus on well-articulated, measurable Key Results reverses this and encourages people to look at what they can do to improve company performance and deliver results that are most needed—our definition of a Culture of Accountability. When Key Results are clearly established, like at OGE, employees are no longer seeking out excuses, they begin to seek out solutions. Next, create a Culture of Accountability® OGE execs first had to agree that “culture” meant much more than what type of holiday party they’d have, but that it meant pervasively “how we do what we do.” Once they connected that their current culture (C1) produced their current results (R1), the lights really went on. We helped them realize that achieving their desired, new Key Results (R2) could not be accomplished with C1. They needed their desired culture (C2), a Culture of Accountability.

About the Authors Multiple New York Times bestselling author Roger Connors is CEO/ co-founder of Partners In Leadership, the global leader in workplace accountability training and consulting. Mattson Newell is regional vice president of Partners In Leadership and expert in energy industry issues. Each brings extensive expertise in helping management teams facilitate large-scale cultural transition through Partners In Leadership’s Accountability Training® methodologies. They have helped the firm’s clients produce billions of dollars in improved profitability and shareholder value using the Partners In Leadership Training.

Results of organization research show that the majority of companies don’t have Key Results defined

UTILITIES In our meeting with company leaders, we advocated that a Culture of Accountability would encompass the whole organization, including every initiative and all Key Results. With just a few carefully defined Key Results, they would then need to redefine accountability. Only then would they get their culture moving in the right direction—one where people understood and owned delivering the Key Results of the organization. “We developed our belief statement, ‘Live Safely,’” said Moser. “And that led us to create and develop experiences that supported an Incident and Injury Incident and Injury Free (IIF) Culture.” Still, the company needed a culture that would come from more than just a few experiences from a few individuals—they needed this shift to be reflected organization wide. Supporting this, our research consistently shows that people who have a crystal clear understanding of their organization’s Key Results consistently demonstrate higher levels of accountability for achieving those results than do people who have a less clear understanding of their organization’s Key Results. People hunger for more clarity 14

September 2014

‘In our over 25 years working with the best organizations, we’ve seen the greatest success come from laying claim to a culture where people demonstrate high levels of ownership to think and act in the manner necessary to achieve their Key Results’ around the organization’s Key Results, because they want to be successful and they want to take greater accountability for what matters most to their organization. In our over 25 years working with the best organizations, we’ve seen the greatest success come from laying claim to a culture where people demonstrate high levels of ownership to think and act in the manner necessary to achieve their Key Results. That starts by everyone knowing what those results are. The defining characteristic of

K eeping the L ights O n

When Key Results are clearly established, employees are no longer seeking out excuses, they begin to seek out solutions

UTILITIES this kind of culture is that people voluntarily assume their own accountability. Rather than having accountability forced upon them, they enthusiastically take it upon themselves. That’s right, they are neither commanded to be accountable nor kept under surveillance until “called to account” for their actions. Finally, Reap the Fruits of Accountability

It could be argued that it’s impossible to hold everyone accountable. But it is possible for people to hold themselves accountable. Defining Key Results won’t create instant accountability nor will the exercise broadly convince everyone to take accountability— but it’s an essential first step. To get there, you must regularly clarify, reinforce, and refocus the organization on those Key Results. Without concerted effort, the constant forces

Defining key results is an essential first step to organizational accountability

K eeping the L ights O n

of resource constraints, problem solving, and operational pressures are working to cause the organization to drift away from this foundation. With concerted effort, people organization-wide begin to own their own contribution to Key Results. In a Culture of Accountability, people at every level of the organization are personally committed to achieving Key Results targeted by the team or organization, and they never wait to be asked for a progress report or a follow up plan. Instead, they report proactively and follow up constantly, diligently measuring their own progress because they have internalized their commitment to achieving results. Their mantra—“What else can I do to achieve the desired results?”—leads them to continually find answers, develop solutions, overcome obstacles, and triumph over any trouble that might come along. And, as you would expect, everyone holds everyone accountable for achieving those results. Plugging into Key Results It didn’t happen overnight, and it didn’t happen without a significant amount of time and effort, but OGE got the

‘In a Culture of Accountability, people at every level of the organization are personally committed to achieving Key Results targeted by the team or organization, and they never wait to be asked for a progress report or a follow up plan.’ Key Results they needed—a 50% reduction in safety incidents which led to improved morale and employee engagement, a 20% increase in customer satisfaction, and a nearly tripled share value of $35.97. Moser said the Culture of Accountability® that OGE is still building on today helped IIF really take hold in the hearts and minds of OGE members, even from their first day of employment. “Thanks in large part to our work on accountability, our IIF culture comes from every member, every moment of every day, at work and at home.” 17

Green Tech

September 2014

CALIFORNIA

From Endless Summer to Endless Energy A new report out from Stanford University details how the Golden State could be completely green by 2050 W r i t t e n b y K e v i n Sm e a d

Green Tech Californians are often the butt of many a joke, mostly based around a certain stereotype. We’re often thought of as (a) blondehaired beach bums, (b) friends with someone famous, or (c) involved with some kind of tech startup. While these paint a picture of a California familiar to many, we residents recognize the state for the vast, diverse economic and cultural juggernaut that it is—and I say that with absolutely no bias, living in San Diego. California is much more than my city’s sunny shores, Hollywood Boulevard, and Silicon Valley. We’re by no means all “hippies” as some would say, though we definitely take pride in our green initiatives and stand at the forefront as a global leader in renewable energy. No matter how vehemently I can spout my pro-California rhetoric, a new report out from Stanford University has even me approaching our renewable energy future with more caution. Authored by a group of researchers from various institutions and published in the journal ‘Energy,’ the report outlines the feasibility for California to become 100 percent run by 20

September 2014

The recently decomissioned San Onofre nuclear power plant in Southern California. The plan for a sustainable california doesn’t include nuclear, biofuels, or fossil fuels renewable energy sources by 2050. Surprisingly (or perhaps not), it is not only possible, but the state will benefit immensely from an effort to do so. “For All Purposes” The first important aspect of the report is its all-inclusiveness. It outlines the replacement and upgrading of California’s allpurpose energy infrastructure: electricity, transportation, heating/

‘This is similar to the plan for New York on which this feasibility report is based. However, California and New York are very different beasts’ cooling, and industry. These would all be powered by what the report labels WWS—or wind, water, and sunlight. This is similar to the plan for New York on which this feasibility report is based. However, California and New York are very different beasts. “The estimates of energy demand and potential supply are developed specifically for California,” the report reads, “which has a higher

population, faster population growth, greater total energy use, and larger transportation share of total energy, but lower energy-use per capita, than does New York.” The proposal for New York also sets a deadline of 2030, as opposed to 2050. The takeaway remains, though: this is a big, encompassing idea that will shape the future of energy as a whole. The report specifically states this goal will be achieved 21

GREEN TECH

â&#x20AC;&#x2DC;For investors the opportunity is enormous: massive amounts of capital will be needed for this transformation to occurâ&#x20AC;&#x2122;

A large wind farm outside of Palm Springs in Southern California 22

September 2014

C alifornia : E ndless S ummer to E ndless E nergy

once fossil fuels, biofuels, and nuclear power are no longer in use. While the changes will be massive, there are several things to remember. This report does not eliminate carbon emissions, but rather “provides the largest possible reductions in air pollution, water pollution, and global-warming impacts.” Also, this plan is not necessarily the most optimized. The report makes it clear that optimization was not the initial goal, but rather a feasibility report that it can, in fact, be done. It does, however, draw from previous optimization studies based on contemporary California energy demand. No Reason Not To Perhaps the most striking thing about the report is the impact it will have on the state. Of course, moving to 100 percent renewable energy will have an expensive ticket to entry with an estimated 1.1 trillion dollars in installation costs. The report believes, however, that the benefits gained from this would equal, if not exceed, this cost. As it is, the numbers discusses in the report are staggering and

A worker checks a solar installation’s generation meter in Los Angeles, CA. If California works towards 100 percent renewable energy, the industry could add some 220,000 jobs are worth getting excited over. The first thing that has people talking is the jobs the transition will reportedly create, some 220,000. This number is impressive, especially since it only accounts for renewable energy job growth. Other jobs that spring up because of residual effects don’t appear to be factored in and 23

GREEN TECH those could be numerous as well. Also, the plan would reduce roughly 12,500 air-pollution premature mortalities per years, avoid $103 billion per year in health costs, and reduce California’s global climate cost by $48 billion per year. Trevor Nielsen, writing for the Huffington Post, thinks implementing this plan is a no-brainer. “To recap, that is more jobs, more money, fewer deaths, cheaper energy

and less of it used,” he writes. “For the public the benefit is obvious: electricity will be cheaper, the air will be cleaner, and fewer people will die as a result.” Nielsen also issues several calls to action for those in power to help make this plan a reality. “For policy-makers the message is clear: stop paying attention to silly efforts aimed at slowing the adoption of renewables funded by those who will lose money if renewables are

‘While California has potentially the best shot of meeting its 2050 goal, other countries have made similar initiatives top priorities’

The report comes from researchers at Stanford University near the San Francisco Bay Area. Similar reports have been done in New York and India

September 2014

C alifornia : E ndless S ummer to E ndless E nergy

adopted,” he implores. “For investors the opportunity is enormous: massive amounts of capital will be needed for this transformation to occur.” In terms of his second point, some are already taking notice. More than One Kind of Green Nielsen points to Warren Buffet as a prime example of an investor who knows a good opportunity when he sees one. He’s recently committed $15 billion to renewable energy investments, and Bloomberg reported that he told his deputy, Greg Abel, “There’s another $15 billion ready to go, as far as I’m concerned.” Many feel Buffett is a savvy investor who anticipates trends and doubling down on renewable energy is certainly a sign he believes that it’s the inevitable future. While California has potentially the best shot of meeting its 2050 goal, other countries have made similar initiatives top priorities While Australia is looking to scale back its renewable energy efforts, the state of New South Wales aims to be the country’s “answer to California.” “We are making NSW number one in energy and environmental policy,”

Environment Minister Rob Stokes said. “India also has an initiative similar to California’s, also with a target date of 2050. While the 100% Renewable Scenario as developed in this study, can at best be seen as a theoretical possibility within the modeling timeframe,” The Energy Report, India’s Director General R. K. Pachauri writes in the report’s foreword, “it helps to visualize the implications of moving towards a high renewable scenario, and makes clear the extent and nature of challenges associated with a move in this direction.” The reports hopes to provide a framework for policy makers and investors to see the potential in a 100 percent renewable energy future for India, similar to the report issued by Stanford. More countries and companies are jumping on board, as it seems more likely that this future will be an inevitable one. “Renewable energy is going to power California,” Nielsen bluntly states. “This is great news for the public. It should be a high priority for elected officials, and it’s an enormous opportunity for smart investors looking for returns.” 25

RENE W ABLES

EDF in

A solar panel in Stanford, Western Cape, South Africa

Africa The French utility is approaching energy accessibility in a manner both big and smallâ&#x20AC;&#x201D;and itâ&#x20AC;&#x2122;s working W r i t t e n b y K e v i n Sm e a d

RENE W ABLES According to the International Energy Agency, there are 1.3 billion people who do not have access to energy. While this is a staggering statistic, it’s even more disconcerting when realizing 85 percent of these people live in rural areas, mostly in Sub-Saharan Africa. While many different organizations attempt to find solutions to energy accessibility in Africa, Électricité de France (EDF) has been working in the developing world since 1990 to bring electricity to those without. The utility’s strategy is to form small, local companies that can serve communities better. EDF is focused on bringing both large and small scale renewable installations to rural communities. With its efforts spanning the continent in 5 different countries (Botswana, Mali, Morocco, Senegal, and South Africa), how is EDF effectively managing its Africa operations? Establishing Attainable Goals As previously discussed, the issue with energy accessibility in Africa is a great one. When looking at the 28

October 2014

big picture, it can be easy to get overwhelmed and view fixing the problem as an impossibility. EDF is avoiding this by keeping its efforts focused and more narrow, rather than broad and encompassing. This doesn’t mean its efforts are small, though. The utility is realistic, yet optimistic in setting goals. In the 5 countries in which it is working, a clear objective is established. Through collection of data and an assessment of the energy situation, EDF establishes the scale of the work it will perform. In Botswana, the area of need is a specific one. Botswana’s energy infrastructure is actually in workable condition, though barely more than half of the country’s rural areas have energy access. The country’s national utility, Botswana Power Corporation (BPC), selected EDF to helm efforts to power up these portions of the country. EDF established the scope of the issue and determined a manageable, achievable goal: to bring electricity to 400,000 people via renewable sources over the next 10 years, with an end date of 2021. The utility set a goal of serving 50-70,000 customers

EDF IN AFRICA

A mountain village in rural Morocco

‘The utility’s strategy is to form small, local companies that can serve communities better. EDF is focused on bringing both large and small scale renewable installations to rural communities’

by the end of the development. These goals are scaled according to the needs of the country, and with relation to what’s achievable. In Senegal, where only 23 percent of the rural population has access to electricity, the goal for the development efforts is to supply 180,000 people with electricity. Unlike its work in Botswana, the project in Senegal is more tightly focused, specifically on the Kaffrine-Tambacounda-Kédougou concession. This concession accounts for more than 2,000 rural villages in the central and southeastern portions of the country. While clear objectives are important in EDF’s Africa initiatives, it’s only one portion of what makes it effective. A Small Solution to a Big Problem In the countries it serves, EDF isn’t attempting to build or re-build national grids. As it has been seen across the rural world, the key to energy accessibility lies in smaller, localized grids and personal forms of energy. In Morocco, the plan is to bring electricity to 161,000 people, or 23,000 customers. To do this, the 29

RENE W ABLES method of choice is small-scale, often single-home solar. This allows energy to reach villages and hamlets off the grid, since the installations are powered by a single PV battery. A similar approach is being taken in Mali, but extends to businesses and schools. Installing PV panels and using them to power these facilities allows for rural communities to have access to services they would not have previously because of power inaccessibility. Also being constructed are low-voltage micro-grids using power from small diesel-fired facilities, which brings electricity to a large majority of the villages slated for upgrade. All of these efforts involve little physical infrastructure, though these smaller grids and singlehome installations require a

‘This involves the creation of what EDF terms as a DSC, or Decentralized Service Company, to serve a community rather than the massive utility’ 30

October 2014

significant amount of manpower. Working Better Together Despite being the name at the forefront, EDF isn’t the party directly involved with rural electrification in Africa. The company’s current approach to this challenge began in the 1990s with the creation of the Rural Electricity Service Company (RESCO) model. This involves the creation of what EDF terms as a DSC, or Decentralized Service Company, to serve a community rather than the massive utility. This way, each DSC can tailor its approach to the regions needs and essentially be run by those who know the region best. “The strength of these DSCs is that they are integrated in the local socio-economic fabric: they are companies governed by local law, employing local managers and personnel,” the company writes. “The difficulty involves designing sustainable projects, in other words, those capable of financing themselves and taking responsibility for their own development. Sustaining decentralized services companies in disadvantaged regions, where

EDF IN AFRICA

In Mali, EDF is providing PV panels to rural communities to power their businesses, schools, and facilities which did not have previously because of power inaccessibility customers use little energy and have low financial resources, is particularly difficult. It requires the creation of a specific economic model, combining subsidies and appropriate tariffs.” EDF’s role in the process is to take the helm in the short term, and dial things back in the long, letting the DSCs take over. “EDF is involved as a ‘start-up aid,’ providing the capital and skills required for the creation and operation of these companies,” the company writes. “When the viability of a DSC is guaranteed, EDF transfers its

entire stake to its local partner, who will be responsible for the longterm running of the company.” Couple this with aid and energy-friendly policies from local governments, and EDFs efforts have ultimately been successful thus far. At last measure in 2012, EDF has helped more than 450,000 people access energy. Many of these projects are still ongoing, but for now, the model of starting with a clear objective, thinking small, and most importantly, thinking locally, seem to be working well for the utility. 31

W ASTE M ANAGE M ENT

More than Just Motors Despite being best known for its automobiles, Mitsubishi is a leader in waste management Writ ten by: Kevin Smead

W ASTE M ANAGE M ENT

Mitsubishi aims to send as little as possible to landfills such as this

You’ve undoubtedly heard of Japanese company Mitsubishi before. They make some of the most popular vehicles on the road and are a staple in the home theatre industry. While the scope of its business is vast, you might not have expected Mitsubishi to get into the energy-fromwaste business. That’s exactly what they’ve been doing, though, to great 34

September 2014

effect. As a major electric company, they have a big stake in what could be the future of waste management. Aiming for “Zero” Mitsubishi’s waste management efforts start with one of the core goals of modern waste management: sending zero waste to landfills. Last month, we featured

M ore than J ust M otors

Sainsbury’s, a U.K. supermarket chain that is converting food waste into energy to such great effect, it’s currently powering one of its own stores using only that energy. The chain also sends zero waste to landfills and is able to achieve this because of the biodegradable nature of the waste. With Mitsubishi, it’s a bit different. The waste produced by its plants is generally non-biodegradable, therefore making recycling vitally important to its long-term success. At its North American plant, the company is taking steps both big and small to reduce its carbon footprint over all. As it’s been noted before, throwing more waste into energy-from-waste programs won’t solve the problem. Simple things such as replacing the

‘The plant is trying to cut down on usage on all fronts, including using less water, and recycling its Styrofoam and steel’

paper towels in the restrooms with hand dryers lead into bigger steps, such as reducing shipping materials by assembling parts in the factory instead of receiving them already put together. “It is a subtle thing you wouldn’t think about, but when designing a car you also have to design the containers the parts fit into,” Dan Irvin, MMNA general manager of corporate communications, told The Phantagraph. The plant is trying to cut down on usage on all fronts, including using less water, and recycling its Styrofoam and steel. In 2013, Mitsubishi as a whole began initiatives to reduce its waste to zero across all of its affiliates by 2021. Its Japanese operations send less than Mitsubishi is best known for its automotive division

W ASTE M ANAGE M ENT 0.1 percent of waste to landfills, but further efforts such as the one at its North American plant need to be enacted at its affiliates overseas for it to hit its targets across the board. The Heavy Lifting Mitsubishi hopes to reuse or recycle 100 percent of its industrial waste and reduce carbon emissions. In order to do this, Mitsubishi Heavy Industries (MHI) introduced a Waste Incineration Facility in 2011 that aids in the reclamation of heavy, otherwise unusable waste. The company isn’t exactly new to the waste management business, either. It opened its first facility in 1971 and has delivered 66 facilities over its history. Its latest iteration is effective for several reasons. “The facility was simplified and downsized by realizing a form of direct combustion that does not require the pre-drying of sludge,” the company explains. “A high-efficiency dry type flue gas treatment system with a filtering reactor was adopted for the cleaning of combustion exhaust gas after waste heat recovery, satisfying strict environmental regulations and promoting efforts for the recycling 36

September 2014

The Guangzhou Likeng waste-toenergy plant is just one of Mitsubishi’s plants currently operating

M ore than J ust M otors

‘Overall, the company is looking to expand the scale of recycling across Japan and Mitsubishi believes it already has the capabilities to make this happen’ and reuse of byproducts.” In the waste-to-energy field, Mitsubishi Heavy Industries Environmental & Chemical Engineering Co. has delivered and constructed more than 180 plants since 1964. The system, called the Mitsubishi-Martin Stoker WtE System, is one of the most popular on the market. It was developed originally by Mitsubishi’s corporate partner in Germany, Martin GmbH. These plants are running around the world, such as the Guangzhou Likeng plant in China and the Tuas South plant in Singapore. A Work in Progress While Mitsubishi is a leader in the waste management field, it’s always working toward a future in which waste can be better managed. Aside 37

W ASTE M ANAGE M ENT from its efforts to move toward a zero-waste future, the company is also working toward better efforts in plastics recycling in Japan. It began in 1999 with its Hyper Cycle System, which has more recently been coupled with the company’s Green Cycle System. The combination of these two recycling systems has seen the amount of plastic waste jump from a mere 6 percent, to an astounding 70. The company sees its mission as more than just reclaiming plastics. “Materials recovered from old products are valuable resources of benefit to society. We look at a mountain of old electrical appliances and see a ‘city mine,’ and view ourselves as the miners entrusted with the painstaking work of extracting the

‘Its Kyoto plant has become an exemplar for energy-from-waste plants in Japan, as it will become more energy efficient and have a longer lifespan by the year 2018’ 38

September 2014

Mitsubishi is working to update its ene precious ore from it,” Takashi Hishi, the company’s Executive Corporate Adviser, said. “But we’re really still just in the era of discovery of what might be possible. We hope in five or ten years Hyper Cycle Systems and Mitsubishi Electric will be viewed as the nucleus of a completely new type of recycled materials industry.” Overall, the company is looking to expand the scale of recycling across Japan and Mitsubishi believes it already has the capabilities to make this happen.

ergy waste-to-energy plants in order for them to be more efficient “Right now the facility has ample capacity to refine much more raw plastic materials than it receives from Hyper Cycle Systems,” Satoshi Matsuda, President of Green Cycle Systems, explained. “And once we achieve full operation, which we expect to happen as quickly as possible, then we will develop as a bearer of new industry that can contribute to society with a low-carbon footprint and recyclingoriented base. I truly believe this is essential for the betterment of

the industry and for Japanese society at large, in the future.” In addition to this, Mitsubishi is also stepping up its energy-from-waste business, upgrading its existing plants. Its Kyoto plant has become an exemplar for energy-from-waste plants in Japan, as it will become more energy efficient and have a longer lifespan by the year 2018. While they have been a leader in the field for many years, Mitsubishi is a company to watch in the waste management business. 39

TOP 1 0

Commercial Solar Contractors

Solar Power World released its annual list of top 400 solar contractors working currently. It also split its list into smaller categories, one of which is commercial solar. We take a look at the top 10 commercial solar contractors and what makes them special Written by: Kevin Smead

top 10

Nexamp Boston, Massachusetts Nexamp is one of New England’s leading commercial solar installers with 42 MW of installed solar spanning some 200 projects. The company, founded in 2007, is fairly new, but is growing rapidly—18 of its 43 MW were installed in 2013. Some of its notable projects include the 4.5 MW Westford Solar Park in Westford, MA, and the 819 kW solar farm at the Barnstable Wastewater Treatment Plant in Barnstable, MA. The company works with property owners to develop renewable energy projects on their lands or buildings and offers full development services, including feasibility studies and design. www.nexamp.com

Nexamp’s Westford Solar Park in Westford, MA.

October 2014

The Pheonix Convention Center in Phoenix, Arizona, was a project Wilson Electric worked on.

Wilson Electric Tempe, Arizona

Wilson Electric is the oldest company in the top 10, having been founded in 1968, though its solar division is a more recent addition. Working mainly in the Southwest (specifically in Arizona and New Mexico), Wilson has installed a total of 61.519 MW, nearly a third of which was in 2013. The company offers full solar service and prides itself on its innovative and integrative installations, which are more aesthetically pleasing. www.wilsonelectric.net 43

top 10

Panels being mounted in Cantsinkâ&#x20AC;&#x2122;s helical piles.

Cantsink Lilburn, Georgia

Construction firm Cantsink Manufacturing and installing helical piles for over 25 years. These piles are literally the foundation for solar projects. These piles are a preferred method of mounting in the solar world, as theyâ&#x20AC;&#x2122;re cost efficient, easy to install, and recyclable. Cantsink is well-liked in the industry for being able to customize solutions for clients, as well as their commitment to sustainability and quick turnaround time. The life expectancy of their piles when properly installed is in the area of 100 years. www.cantsink.com

October 2014

C ommercial S olar C ontractors

Resolute Performance Contracting Tempe, Arizona Resolute Performance Contracting is a relatively new company, founded only 2011. Its primary business is in structural steel and concrete. However, its work in the solar market is fairly extensive, ranging from ground mounted solar projects, to solar covered parking. The company has installed a total of 30.5 MW, with 20.4 of those in 2013. The company plans on expanding its solar operations in the near future. www.resolutepc.com

Resolute was involved in the solar installation over Arizona State Universityâ&#x20AC;&#x2122;s parking lot.

07 45

top 10

Radiance Solar Atlanta, Georgia Radiance Solar has been around since 2007 and operates in the residential, commercial, and institutional, and utility markets. Theyâ&#x20AC;&#x2122;re a small company, with less than 30 employees, though their installation efforts have been anything but. Its more than 140 completed projects run the gamut from the 20 MW Camilla Solar Park, to smaller, 1 MW parks. Radiance has expertise is all facets of the industry and arenâ&#x20AC;&#x2122;t afraid to tackle more challenging, complex projects. www.radiancesolar.com The 20 MW Camilla Solar Plant in Camilla, GA.

06 46

October 2014

Main Street Power helps clients finance projects via PPAs and governmental and utility incentives.

Main Street Power Company Boulder, Colorado

Main Street Power (MSP) owns and operates more than 50 MW of solar developments. Though the company was founded in 2009, more than half of its MW total was installed in 2013. The company is focused on making solar affordable and considers itself to have expert financial expertise at its disposal. The company was founded as a spin-off of the International Center for Appropriate and Sustainable Technology and is committed to furthering its mission. www.mainstreetpower.com 47

top 10

Sundale Vineyards in Tulare, CA

Cenergy Power Carlsbad, California

Carlsbadâ&#x20AC;&#x2122;s Cenergy Power was founded in 2008 and has installed 68 MW of solar to date, nearly half of which was in 2013. The company works in the commercial market, but also in agricultural and utility markets as well. Cenergy believes that not only is an investment in their solar services a good value, but the start of a beneficial relationship. Theyâ&#x20AC;&#x2122;re looking to drive down the cost of solar and promote clean power. www.cenergypower.com 48

October 2014

C ommercial S olar C ontractors

Borrego Solar Systems San Diego, California Borrego Solar has been around for a while. Founded in 1980, the company has more than 30 years and 1,000 projects under its belt. It handles all aspects of solar installation, from the initial research to ongoing maintenance once the project is complete. The company has installed more than 100 MW of solar and is still rapidly growing. 2013 was a great year for the company, as it installed 37 MW. They believe installing solar should be simple and work to ensure they are easy to work with, using only one pointof-contact for a project. Itâ&#x20AC;&#x2122;s a proven, effective strategy that will see the company into the future. www.borregosolar.com

Stone Brewing in Escondido, CA.

03 49

top 10

M Bar C Construction San Marcos, California M Bar C Construction was initially born from M Bar C Carports, which was founded in 1975. The construction wing was formed in 2005 and focuses on the design and construction of solar carports, ground mounts, and shade structures. 90 percent of its work was designed and built by M Bar C and its custom solutions for solar parking are widely sought after. The company also favors largescale installations and has installed a total of 158 MW. It has worked on an impressive number of schools and government buildings and is continuing to expand. www.mbarconline.com

One of M Bar Câ&#x20AC;&#x2122;s rooftop solar parking

October 2014

C ommercial S olar C ontractors

g structures in Glendale, CA.

top 10

01 Gehrlicher Solar America Corp. Springfield, New Jersey

Gerlicher Solar has taken off in terms of solar installations. In 2013, the company installed 80 MW of solar, bringing it to a total of 115 since its inception in 2010. Gehrlicher is an M+W company and provides a full range of solar services. The company works mainly on the east coast, though it has expanded into the west and South America. The company has completed work for a number of clients, including a large rooftop installation for Ikea. www.gehrlicher.com

Ikea with Gehrlicherâ&#x20AC;&#x2122;s rooftop solar installed. 53

SKA International Group

Continues to raise the business profile of the toughest environments Written by: Tom Wadlow Produced by: Craig Daniels

S K A I n t e r n at i o n a l g r o u p

Despite press coverage depicting the likes of Iraq and Somalia as notorious hotbeds of instability, the company is proving that commercial potential in such places can be extracted by offering vital fuel supply and logistics operations where many would turn and run

727 Freighter

October 2014

KA International Group is an expert in doing big business in difficult places, underlined by its $80-100 million investment in a state-of-the-art fuel storage facility 20km upstream from the Iraqi coast, testament to more than 10 yearsâ&#x20AC;&#x2122; experience of operating in the war-stricken country. Having excelled in supplying and transporting fuel and equipment during the major US occupation years, the Dubai-based company, with more than 700 employees and turnover in excess of $500 million, is increasingly looking to oil and gas opportunities in Iraq and other countries across the Middle East and Africa with challenging circumstances. SKA has significant ongoing investments in Somalia and Uganda, and is raising the profile of the Ras Al Khaimah International Airport in the UAE with a 10 year agreement, where it has built and operates an Aviation Fuel Storage Facility. SKAâ&#x20AC;&#x2122;s capabilities include a wide range of fuel

S upply C hain

SKA Bedford Trucks in Mogadishu

supply chain management services, aviation services, ground logistics, life support, facility construction, and security services. Working as a good corporate citizen, and helping to develop business, people and communities while supporting charitable initiatives, lies at the heart of what CEO and President, and 100 percent owner Mike Douglas is vying to achieve. â&#x20AC;&#x153;Despite the negative coverage of the countries we are in there is huge potential for development,â&#x20AC;? he said. â&#x20AC;&#x153;We are already changing that negative impression and a big part of what we do is give back to the communities we do business in.

Key Personnel

Mike Douglas CEO and President

w w w. s k a - a r a b i a . c o m

Providing Turn-key Rental Power Providing Turn-key Rental Power SolutionsTurn-key to the OilRental & GasPower Industry Providing Providing to Turn-key Power Solutions the Oil Rental & Gas Industry Solutions to to the the Oil Oil & & Gas Gas Industry Industry Solutions Whether you need temporary power for the operation of oilfields, the construction of platforms, early temporary production,power planned maintenance loadtest of main power Whether you need for or theemergency operation of oilfields, theor construction of systems, Aggreko has the solution. platforms, early production, planned maintenance of main Whether you need temporary power or foremergency the operation of oilfields,or theloadtest construction ofpower systems, Aggreko has the solution. Whether you need temporary power foremergency the operation of oilfields, or theloadtest construction of We offer full project planning, installation and commissioning, and 24/7 service maintenance. platforms, early production, planned or maintenance of main power platforms, early production, planned or emergency maintenance loadtest of main power systems, Aggreko has the solution. We offer full project planning, installation and commissioning, andor24/7 service maintenance. Aggreko, Power Specialists systems, Aggreko has the solution. in Oil & Gas We offer full project planning, installation and commissioning, and 24/7 service maintenance. Aggreko, Power Specialists in Oil & Gas Middle East Ltd. installation WeAggreko offer full project planning, and commissioning, and 24/7 service maintenance. PO Box 16875, Dubai, UAE Aggreko, Power in Oil Aggreko Middle EastSpecialists Ltd. T: +9714 808 6100 F: +9714 883 1825 Aggreko, Power Specialists in Oil PO Box 16875, Dubai, UAE Aggreko Middle East Ltd. T: +9714 808 6100 F: +9714 883 1825 UAE PO Abu BoxDhabi, 16875, UAEDubai, UAE Aggreko MiddleDubai, East Ltd. +971 (0)4 8086100 +971 (0)2 5549494 T: +9714 808 6100 F: +9714 883 1825 PO Box 16875, Dubai, UAEDammam, Dubai, UAE Abu Dhabi, UAE Kuwait City, Kuwait KSA +971 (0)4 +971 (0)2 5549494 T: +9714 808 6100 F: +9714 883 1825 +966 8086100 (0)13 8580301 +965 23983648

& Gas & Gas

Sharjah, UAE +971 (0)6 5345999 Sharjah, UAEKSA Jeddah, +971+966 (0)6 5345999 (0)12 2727640 Dubai, UAEKSA Sharjah, KSA UAE Abu Dhabi, Jeddah, Kuwait City,UAE Kuwait Dammam, +971 (0)4 8086100 +971 (0)6 5345999 +971 (0)2 5549494 +966 (0)13 +966 (0)12UAE 2727640 +965 23983648 Dubai, UAE8580301 Sharjah, Abu Dhabi, UAE Aggreko operates from Dammam, over 190 locations throughout the world. Jeddah, Kuwait City, Kuwait KSA +971 (0)4 8086100 +971 (0)6KSA 5345999 +971 (0)2 5549494 For the location nearest you, please go to: www.aggreko.com/contact +966 (0)13 8580301 +966 (0)12 2727640 +965 23983648 Jeddah, KSA Kuwait City, Kuwait KSAthroughout the Aggreko operates from overDammam, 190 locations world. +966 (0)13 8580301 +966 (0)12 2727640 +965 23983648 For the location nearest you, please go to: www.aggreko.com/contact Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact 59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1

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Doha, Qatar +974 44606178 Doha, QatarKSA Yanbu, +974+966 44606178 (0)14 3963993 Doha, Qatar Yanbu, KSA +974 44606178 +966 3963993 Doha,(0)14 Qatar Yanbu, KSA +974 44606178 +966 (0)14 3963993 Yanbu, KSA +966 (0)14 3963993

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06/02/2 06/02/2014

S K A I n t e r n at i o n a l

supplier profile

AGGREKO

Since its foundation over 50 years ago, Aggreko has grown to become the worldâ&#x20AC;&#x2122;s leading provider of rental power and temperature control solutions. With over 5,700 employees operating from over 194 locations, Aggreko provides 24/7 availability and service support. Aggreko offers the highest levels of performance and customer service and is truly a global force in temporary power generation. Aggreko in the Middle East Since opening its first regional office in Sharjah in 1991, Aggreko today offers round-the-clock service support and equipment availability in the Middle East through a network of twelve locations in eight countries; UAE, Oman, Qatar, Kuwait, Bahrain, Saudi Arabia, Turkey and Iraq. Practical Solutions More than products, Aggreko has significant experience in providing power generators, electrical testing and temperature control services, offering total power and cooling solutions. Its equipment allows the flexibility of creative and novel solutions to suit customer needs - solutions that work not just on paper, but in practice. This means offering 24-hour back-up 365 days a year and making full use of a global network of depots to ensure that the equipment is on-site in the shortest possible time. The considerable success of Aggreko is due not only to the services provided, but the way in which those services are provided. The accomplishments are a result of the application of vision and creativity to customers and giving them ideas and solutions that improves their performance â&#x20AC;&#x201C; every time. By working with Aggreko, our customers can focus on their core activities, secure in the knowledge their power supply is in the hands of an expert organisation. Website: me.aggreko.com

2014 12:55 12:55

S K A I n t e r n at i o n a l

Off loading cargo

80,000 Planned number of tonnes of fuel storage available at the Port of Khor Al Zubair 60

October 2014

â&#x20AC;&#x153;The company can continue to grow significantly in the next three to five years.â&#x20AC;? Khor Al Zubair Iraq represents arguably the greatest challenges but also the greatest amount of activity for SKA, which operates under nine companies across six Middle Eastern and African countries. Its current flagship investment lies at the Port of Khor Al Zubair, the first privately-owned fuel storage facility in Iraq, with a 20,000 tonne capacity, set to rise to 80,000 once phases two and three are completed. The expansion, which will take total spend to upwards of $80 million, will allow SKA to deliver

S upply C hain

The company’s aim is to handle third party imported products

more fuel to power vital industries in the future. “We have encountered some significant challenges but we are very active, supplying fuel and importing refined products, and keeping power stations operational in what is a very difficult time,” Douglas added. “The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums. Our plan is not only to handle our own fuel through the terminal but to handle third party imported products also.” SKA also has a testing lab at the site where Intertek conducts international fuel certifications, giving peace of mind to customers in the knowledge that their fuel is of the highest

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums” – Mike Douglas

w w w. s k a - a r a b i a . c o m

. C on tr ol . T op te ch .

S K A I n t e r n at i o n a l g r o u p

Toptech Systems is a leading provider of terminal

ie fic

A multi-solution batch controller that handles loading, dispensing, tracking, BS&W, and water cut.

www.toptech.com +32 (0)3 250 60 60 Tlu-marketing@idexcorp.com

The most widely used and trusted terminal automation system in the world.

automation software and hardware solutions. Since 1988, Toptech has delivered superior products and services to each customer.

Complete supply chain solutions Full materials handling range Over 600 mobile support engineers

SIXSQUARE LIMITED Your International Supplier of Fresh Fruits, Flowers, Vegtables, Dry & Frozen Food and General Items.

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middle east

standard, something which has been problematic in Iraq in the past. Investing in Iraq This project is representative of a shift towards focusing on the oil and gas markets in the country following a number of huge and varied projects based around the US military. SKA handled most of the logistics freight for the US government in a six-year contract and carried out an enormous 180,000-hectare crop spraying scheme in 2006; this while being the key fuel supply chain operator. It now has a fleet of 500 trucks in Iraq moving all kinds of fuel and equipment, and is working with global oil and gas companies including BP and Lukoil. The company’s local knowledge and experience is central to its success. “Security is a major issue in a lot of our regions,” Douglas said. “But 11 years in Iraq has given us the experience to manage our way through a lot of the problems. We have a thorough security plan in place and an extensive evacuation procedure should the need ever arise. “Our experience and knowledge of what happens on the ground is our greatest asset – we can foresee issues before they come to us.” The resoluteness of SKA has played an important part in convincing businesses to invest in Iraq, and Douglas, himself having served in the armed forces, is an active figure at the Iraq British Business Council. This body works tirelessly to

500 Number of trucks in Iraq moving all kinds of fuel and equipment “11 years in Iraq has given us the experience to manage our way through a lot of the problems” – Mike Douglas

w w w. s k a - a r a b i a . c o m

ENGINEER.PROCURE.CONSTRUCT.MANAGE

EPC SERVICES

ENGINEERING & CONSTRUCTION SOLUTIONS FOR STORAGE INDUSTRY

Chemie-Tech is a professional Industrial solutions provider, offering high quality Engineering, Procurement Construction & Project Management services to Oil & Gas, Petrochemical & Process, Power & Water Industries. The sphere of activity is focused in providing expertise and turnkey solutions to clients throughout Middle East, Australasia, Africa and North America. With Global Operations and technical expertise to respond to the complex challenges of the Bulk Liquid Storage Tank Terminal/Depots Installation, Offsite, Utilities, Pipeline, Process Plants (Refinery & Petrochemical), Topside Facilities, Fuel Ethanol Plants, Bio Diesel Plants or Used Oil Recycling Plants, Chemie-Tech delivers Quality Projects.

PO Box 29781, Sharjah, United Arab Emirates Tel +971.6.5530776 Fax +971.6.5538466 bd@chemietech.com www.chemietech.com

Chemie-Tech

S K A I n t e r n at i o n a l G r o u p

middle east

bring in investment to the country and SKA is a founding member. Ras Al Khaimah Closer to its Dubai headquarters, the company is working to improve the commercial profile of Ras Al Khaimah International Airport. A $10 million aviation fuel storage facility, recently commissioned, is the first step in attracting both cargo and passenger carriers to the airport. Douglas believes the incentive of a competitive fuel and handling package will draw in investment where before it may not have been attractive. “As the UAE rapidly expands there is a lot of congestion at Dubai International, but currently at Ras Al Khaimah there is a very low level of activity,” he said. “We are injecting some fresh ideas and the large amount of hotel developments going on also shows the tourism potential.” Somalia, Uganda and beyond Aviation is also a crucial part of SKA’s work in Africa, not least in Uganda and Somalia, arguably the most unstable nation on the continent. Here SKA has several contracts with the United Nations (UN) mainly based around life support and fuel supply, and continues to provide supply chain services to Mogadishu airport having given it a new lease of life between 2010 and 2013. SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia,

SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia

w w w. s k a - a r a b i a . c o m

S K A I n t e r n at i o n a l

The company invests significantly in training

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have” – Mike Douglas

October 2014

with a significant focus now being turned towards oil and gas operations. Douglas added: “We have been on the ground for coming up four years and have developed a unique capability in terms of being able to do business. “There is a big opportunity here for oil and gas and a lot of mineral resources which are yet to be explored. We are long-term investors, here for the long haul.” In Uganda, the company is set to begin building a 20,000-tonne fuel storage facility just outside Kampala, with operations looking to commence in 2015. The site is strategically placed on the rail and road networks from Mombasa, facilitating increased import of refined goods. SKA is also about to retain its air operating certificate, an important step on continuing work

middle east

here and for other UN projects in the likes of the DRC, South Sudan and Central African Republic. Building up communities An ultimate end for Douglas is to revitalise the societies in which the company works, with a big part of this revolving around employing and developing local people in the business. SKA employs more than 700 people, a mixture of former armed forces personnel, commerciallyfocused personnel, as well as local nationals. “We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have,” Douglas added. “We invest a lot in training and sending people abroad to become qualified – I want a loyal group to take us forward.” The company also invests heavily in the charitable sector, for example in Iraq where it supports many events run by the Amar International Charitable Foundation. By continuing to improve its own offering, SKA International Group can keep on driving commercial growth in the world’s most challenging environments where help is needed the most, ultimately uplifting the lives of communities that have endured years of hardship. Douglas concluded: “Despite the negative media headlines there is a huge amount of opportunity in African and Middle Eastern countries. The message I want to give is that we are here to stay.”

Company Information Industry

Supply Chain & Energy headquarters

Dubai, UAE founded

2003 employees

700+ revenue

Not Disclosed products/ s e r v ic e s

Logistics

w w w. s k a - a r a b i a . c o m

Manitoba Floodway Authorityâ&#x20AC;&#x2122;s Red Riv Floodway Expansio

Red River Floodway Expans Flood Protection While Delive

Manitoba Floodway Authority Chief Executive Officer, Ernie Manager, Ronuk Modha, discusse how the Red River Floo budget while delivering top results Written by: Sasha Orman

Produced by: Michael Magno

y ver on Project

sion Improves ering on Budget

e Gilroy, and Communications odway Expansion stayed under

c o m pa n y n a m e

Aprx. 21 million cubic metres of earth was excavated to more than double the floodw

anitoba’s Red River Valley has always been a threat to the city of Winnipeg. In 1997 a major flood, deemed “The Flood of the Century,” forced evacuations and threatened to breach the Red River Floodway. In its wake, the Governments of Manitoba and Canada decided that the time had come to upgrade public infrastructure to enhance the floodway’s abilities and better protect Winnipeg. The result of this was the $665 70

October 2014

million Red River Floodway Expansion Project, a complex flood protection project, jointly funded by the governments of Canada and Manitoba, to improve Winnipeg’s flood protection by increasing the capacity of floodway channel, construction and redesign of highway and railway bridges, improving the Inlet Control Structure, expanding the Outlet Structure, expanded the West Dike and various utility modification. With the project’s completion in March

sector

way channel’s capacity

of 2014, Winnipeg is now more protected from floods and damage than ever before.

project under budget at $627 million, saving the Canadian and Manitoban governments a total of $38 million. “We set three goals when we Meeting and Exceeding Budget were undertaking the project: Large-scale infrastructure projects bringing the project in on its $665 often go over budget, sometimes million budget, ensuring we would costing millions more than originally be able to increase the floodway’s intended. In this regard, the Red capacity from 1-in-90 to 1-in-700 River Floodway expansion is unique flood protection, and ensuring that – rather than going over its proposed the main transportation routes $665 million budget, the Manitoba that cross the floodway would be Floodway Authority was able to operational during a major flood,” meet its goals while delivering the says Ernie Gilroy, CEO of the w w w. f l o o d w a y a u t h o r i t y. m b . c a / h o m e . h t m l

AS THE PROJECT LEAD CONSULTANTS, KGS GROUP IS PROUD TO HAVE PROVIDED THE FOLLOWING SERVICES FROM THE CONCEPTUAL TO CONSTRUCTION PHASES: IJC STUDIES (1999)

Concept study of alternatives and economic justification for additional flood protection for the City of Winnipeg

PROJECT DEFINITION AND ENVIRONMENTAL ASSESSMENT 2 (PDEA 2 – 2004-2005)

Lead Consultant for the Second Phase Definition Studies

ST. AGATHE AND FLOODWAY EXPANSION STUDY (SAFE STUDY 2001)

FLOODWAY EXPANSION FINAL DESIGN

PROJECT DEFINITION AND ENVIRONMENTAL ASSESSMENT 1 (PDEA 1 – 2003-2004)

FLOODWAY EXPANSION CONTRACT ADMINISTRATION

Assessment and optimization of costs, economics and environmental issues

Lead Consultant for the First Phase Definition Studies

Lead Consultant for the Channel, Outlet Structure, Inlet Structure and West Dyke

CONGRATULATIONS TO MANITOBA FLOODWAY AUTHORITY FOR THE SUCCESSFUL IMPLEMENTATION OF THE FLOODWAY EXPANSION PROJECT ON TIME AND ON BUDGET

ENGINEERING INDUSTRY LEADERS IN: Hydraulics • Structural • Geotechnical • Environmental • Hydrogeology • Municipal • Mechanical • Electrical • Geographic Information Systems

www.kgsgroup.com WINNIPEG

TORONTO

THUNDER BAY

REGINA

canada

Manitoba Floodway Authority . “As the project proceeded, we began to see signs that some of our costs were going up related to events such as Hurricane Katrina, the Alberta oilsands, and an overall booming construction industry that was resulting in a skilled labor shortage. As a result, we revised our project and focused in on what components of our project actually had to be done in order to deliver the 1-in-700 year flood protection.” By taking this focused approach, the Floodway Authority was able to find ways to stay under budget by increasing channel excavation

supplier profile

work while reducing the number of bridges to be replaced from 12 down to 8, realizing significant savings throughout the project. Achieving Budget Through Flexibility and Innovation The Manitoba Floodway Authority did not solely rely on cutting back components in order to create cost savings – the project also stayed on budget through strategies like flexible scheduling, tiered tendering plans that allowed contractors to fine-tune and adjust their bids for lower prices overall in response to subsequent tenders, and a project

KGS Group

Clients across Canada and internationally look to KGS Group for consulting, design, and project management services. KGS Group provides a full range of services including Industrial, water resources, hydroelectric, hydrogeological and geo-environmental, commercial and institutional, municipal infrastructure, geotechnical, and structural steel detailing. Our consistent delivery of quality engineering services has earned KGS Group a reputation as one of Western Canada’s leading consulting firms. Website: www.kgsgroup.com

w w w. f l o o d w a y a u t h o r i t y. m b . c a / h o m e . h t m l

The Outlet Structure was expanded to accommodate a 1-in-700 year flood

canada

management agreement to even out wages and benefits for workers across all contractors to avoid personnel-based delays. The project management agreement helped to ensure that there were no strikes and no lockouts during the project which helped to keep the project on time. In order to meet the labor shortage head on, the Floodway Authority utilized creative hiring and people management practices. Notably, the Manitoba Floodway Authority required contractors to have 20 percent employment equity on contract tenders – a requirement that both addressed the Alberta oilsands-related labor shortage and gave opportunities to workers in groups that were often underrepresented in the construction industry including women, first nations and aboriginals, and people with disabilities. “We also employed an aboriginal set-aside initiative where aboriginal companies could actually bid on certain aspects of the work,” said Ronuk Modha, Communications Manager for the Manitoba Floodway Authority. “One component of

our project, the West Dike – only aboriginal-owned construction companies could actually bid on this work. What this did is it identified a whole segment of the construction industry that traditionally had not been involved in large-scale projects such as this, and gave them the opportunity to bid on work and all of these kinds of things benefitted our project.” In particular, this initiative has had significant effects and benefits outside of the Floodway Expansion project itself. “Before we set up the set-aside program, we had some discussions with aboriginal contractors – one of the things they continually indicated to us was that they had a challenge getting contract bonding to work on largescale projects,” says Modha. “With our initiative, rather than having these companies go out and get bonding from a private bonding company, we took on the role of the bonding company and managed the work that they were doing. As a result they were able to get a lot of experience and, subsequent to their involvement with our project; they

w w w. f l o o d w a y a u t h o r i t y. m b . c a / h o m e . h t m l

M a n i t o b a F l o o d way A u t h o r i t y ’ s R e d Ri v e r F l o

Outlet Control Structure

were able to demonstrate to private bonding companies that they were able to do the work successfully. So since being involved with the Floodway project, many have 76

October 2014

been able to bid on other work. So there’s definitely been a long term benefit for these companies and for the construction industry in our province as well.”

o o d way E x pa n s i o n P r o j e c t A Safer and More Secure Winnipeg After years of work, the Red River Floodway reached 1-in-700 year flood protection levels in 2009. Since that time the Manitoba Floodway Authority has been putting the finishing touches on its work until full completion earlier this year. “We’re very pleased that we were able to meet all of our objectives while delivering the project under budget,” says Modha. “By providing that the project was completed under budget, the governments of Canada and Manitoba were able to re-divert those funds to other flood protection projects throughout the province, and we were very pleased to be a part of that decision.” Beyond the budget, the effects of the floodway expansion are already being felt throughout the city. “This past year there was not as much flooding on the Red River as in previous years, so the floodway was only operated for a short period of time,” notes Gilroy. . “However, over the years the floodway has prevented over $36 billion in damages and with the expansion completed, this number will continue to increase. As Winnipeggers continue to rely more and more on the floodway, we are very proud of the work that we have done and our hats go out to all of the engineers, construction companies and workers that worked on the project.”

canada

Company Information Industry

Energy / Infrastructure / Flood Protection headquarters

Manitoba, Canada founded

2003 employees

3,600

Photographs courtesy of the Manitoba Floodway Authority

w w w. f l o o d w a y a u t h o r i t y. m b . c a / h o m e . h t m l

Torq Energy Logistics

Torq Energy Logisitcs Poised Canadian Crude-by-Rail Mar What sets Torq Energy Logistics apart in the crude-by-rail Written by: Ian Hanner

Produced by: Michael Magno

d to Corner arket market?

T o r q E n e r g y L o gi s t ic s

perating six transloading terminals in key energy regions in Alberta and Saskatchewan, Torq Energy Logistics is excellently positioned for growth in a favorable market. Canada has experienced a nearly 29 percent increase in the production of crude oil between 2008 and 2013. This massive increase in product has allowed for substantial growth in the crudeby-rail (CBR) industry, with Torq Energy Logistics leading the way in transportation solutions. Established in 2011, Torq Transloading is a division of Torq Energy Logistics 80

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(Torq) that provides “fully-integrated crude handling and transportation service from the well site to the rail car.” While Canadian demand for CBR services skyrockets, Torq is adopting a policy of rapid expansion to corner the market as quickly and safely as possible. To help facilitate those plans for expansion, Kohlberg Kravis Roberts & Co. (KKR) invested C$250 million in Torq with the goal to focus “on accretive acquisitions and new opportunities to further integrate the upstream and downstream aspects of the energy supply chain with the addition of complementary energy products

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and services, including stranded propane, butane and ethane as well as y-grade and natural gas liquids, in addition to its crude focus to date,” Torq’s website says. Torq’s President and CEO Jarrett Zielinski said in a press release, “We are honored and excited to be partnering with KKR. The shared vision between us in conjunction

with the reputational and capital backing of KKR is expected to provide a long runway for growth. Today is an extremely active and exciting time to be in the energy logistics space. New technologies continue to unlock oil and gas reserves previously deemed uneconomic. The unexpected increase in energy production w w w . t o r q e n e r g y. c o m

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is reshaping the landscape of how we move energy from wellhead to market. Torq has been compelled to rethink conventional means and innovate new modes of energy transportation and storage infrastructure so as to provide premium economics for its customers and facilitate continued exploration and production.â&#x20AC;? As an industry leader, Torq tries to set an example for high safety standards as well. Employing portable, closed loop systems and bottom car loading process, the company cuts costs and improves operational efficiency all while minimizing environmental impact and protecting employees. To add to these safety standards, all 400 plus employees are required to go through a safety program called H2S Alive in which workers are

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T o r q E n e r g y L o gi s t ic s

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educated on the dangers of hydrogen sulfide gas, how to prevent exposure and proper response in the event of an accident. Torq’s niche lies in the transport of heavy crude oil such as that produced in the Canadian oil sands. Light crude is relatively easy to ship by pipeline and there have been a good deal of developments to fill that demand. Heavy crude however must be diluted with condensate so that it is light enough to flow through pipelines. Once it reaches its destination, the condensate must be removed at considerable cost. Shipping crude by rail however removes the necessity for condensate. “Not only are we able to maintain the integrity of the raw product, we can also remove the condensate from the supply chain completely,” Zielinski said, according to Energy & Mining International. He also said to Oilweek, “My view is that light crude should move by pipeline and heavy crude should move by rail.” Since its start in 2011, Torq has expanded from a small trucking firm with only 25 employees and a transport capacity of about 600 barrels of crude per day, to a major energy logistics company that is capable of moving over 45,000 barrels of crude per day; a rate that is expected to more the double in 2014. Now with the investment from KKR, there’s no telling what’s next for this visionary company.

Company Information Industry

Oil & Gas Transport headquarters

Alberta Canada founded

2011 employees

400+

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Transport Matte

1 to 100, and Beyond

The transport company that started with a single truck has industry thanks in part to the hard-working family behind it Written by: Kevin Smead

Produced by: Michael Magno

s become a leader in the transport t all.

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ransport Matte started with one truck, purchased by HervĂŠ and Monique Matte in 1951. They had a contract to transport forest residue to the Donnacona paper mill in Quebec. More than 60 years and 100 trucks later, the company is in its third generation of family ownership and continues to grow. 88

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How has this family-run business remained strong for more than half a century? According to owner Melany Matte, the companyâ&#x20AC;&#x2122;s success comes from a number of factors, all stemming from a company culture of hard work. Like Rings in a Tree In looking at the companyâ&#x20AC;&#x2122;s history,

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there are several big milestones, much like the rings of the trees Matte sometimes transports. In 1955, two more trucks were added to the fleet. However, everything was operated from the Matte home. Monique took care of accounting and dispatch as well as cooking the driversâ&#x20AC;&#x2122; meals they would eat at the family house before

leaving for another trip. HervĂŠ was mostly on the road to find new clients in addition to working on the weekends as master of ceremony to make ends meet. The company continued to grow in the 1970s, adding more trucks to meet the needs of its customers. The coupleâ&#x20AC;&#x2122;s children also decided at that time to join the company w w w. t r a n s p o r t m a t t e . c o m

T r a n s p o r t M at t e

CANADA

founded by their parents. However, tragedy struck and in 1981, Hervé died. In wanting to carry on the business, his 4 children took over. “They had a lot of obstacles to overcome,” Matte said, “but they succeeded because of their great efforts and the company continued to grow.” During those years, between 1981 and the early 2000s, different companies were formed by family members to meet other needs and comply with regulations of that time. In 2006, all merged together to form Transport Matte Limited. “Since 2004, I and two of my cousins have been ensuring the continuation of the family

supplier profile Hewitt Equipment LTD You work hard every day and you count on rugged, reliable products to keep your operation up and running. Hewitt’s Truck Centre has the expertise required to be your service partner and help you achieve success with your projects, supplying equipment that meets the demands of the world’s toughest industries. In 8 specialized Truck Service Centres located in Quebec and Western Labrador, Hewitt Equipment Limited is the authorized Caterpillar CT660 truck dealer and provides the following services: • General truck repair and maintenance • S•O•S fluid analysis laboratory • Dynamometer test • Engine overhaul • Parts inventory • CAT Finance • Premium service for transporters /carriers Hewitt, Service par Excellence Contact us: 1 855 439-4888 Visit our Website: www.hewitt.ca/truck

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T r a n s p o r t M at t e business,” Matte said. “Even with Transport Matte becoming a bigger company—we have 120 employees now—we’re still a family business and our operations reflect that spirit.” 24/7 Service—Literally Transport Matte has not only succeeded because of its work ethic, but also the company’s strong commitment to providing the best service to its customers, every time. “Our mission is to maintain our

leading position in the bulk transport of forest residues by meeting the needs of our customers with service that exceed expectations and staying abreast of their specific transportation needs,” Matte said. The company operates in Quebec, Ontario, and the Canadian Maritimes. They have a diverse fleet of trucks and trailers that serve a number of different industries. “We have a fleet of 100 trucks and 190 trailers in different regions,” Matte said. “This allows

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us to quickly serve our customers regardless of their location.” This commitment to service also includes always being on call when a customer may need something. “We have good and diversified equipment which allows us to be flexible and have a very short response time,” Matte said. “We’re also open 24 hours a day, 7 days a week, so there’s always someone on the phone who can quickly answer any question or address any problem for the client or the driver.” In the end, it’s all about doing the best work they can for the customer. “Service is what matters most to us,” Matte said. “Our team makes all the necessary efforts to make sure the clients always receive the number of loads they ask for and that it’s delivered on time.” Driving Success While the family plays a major role in the company, its drivers and maintenance crew are equally important. The company takes a very personal approach when it comes to its employees, making its growing business still seem small. “All of our drivers have their

assigned truck,” Matte explained, “so they don’t need to share it with anyone else.” Also, drivers are supported by a top-notch maintenance team who are always working to ensure the trucks are cared for and maintenance is preventative rather than reactive. In addition, the company works to create a culture that people want to be a part of. “As a family business, we have human management and consider our employees as part of our success,” Matte said. “They know that we’re always there to help them in any way. Even if they have personal problems, we’re always there to listen.” 60 More Years? In 2011, the company celebrated its 60th anniversary and is continuing to improve and grow, including taking a more high-tech approach to transport. “We have invested a lot in recent years to use new computer systems to improve our competitiveness and service,” Matte said. “For example, we’re now developing a w w w. t r a n s p o r t m a t t e . c o m

T r a n s p o r t M at t e

new dispatch program to meet our specific needs. We’re also finishing installing GPS tracking systems in every truck so our dispatchers can know at all times where our trucks are and better distribute them on the territory we serve in order to respond more effectively to our customers.” Adaptation is key, as the market is quite a difficult one to be in. However, Matte sees that more as a chance to excel rather than be hindered. “The wood market that we’re in is not growing—it’s actually been going down since the crisis in 94

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2008,” she explained. “It started with a wood crisis which was followed up by the financial crisis. This challenges us to innovate more and diversify our operations in order to maintain our position on the market.” The company is constantly looking for the best employees and to seize opportunities that could lead to furthering its growth. In the end, though, it all comes back to the family. “The hard work of all our family members has made us what we are today,” Matte said. “Our family has always considered the well-being of

CANADA

Company Information Industry

Transportation headquarters

Quebec, Canada founded

1951 employees

120

the company, its clients, and employees before themselves. We’re all very committed to the company and we put all necessary efforts in place to ensure its longevity.” In pondering longevity, one might wonder what Transport Matte might look like in another 60 years. Melany Matte believes the company has found new life and stands at the beginning of a bright future. “Right now, we’re in the third generation of the company’s business,” she said. “I would say it’s bringing a breath of fresh air to everything. We bring new ideas and solutions to improve our operations and service. We’re taking the company and hoping to continue it for another 60 years.” For a company where one truck has become 100, there’s no telling what 100 might become.

revenue

20 Million

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Mar Renew

Can

rine wables

nada 97

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OpenHydro - Bay of Fundy

arine renewable energy is largely an untapped resource that has the potential to provide new energy, economic, and environmental benefits for Canada. Harnessing the power of the tides, waves, and rivers 98

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can provide a clean, sustainable fuel source, contribute to a diversified energy mix and energy security, and spur industrial growth by capitalizing on capabilities already present in other sectors. While the Canadian sector is in its early stages, natural

sector

advantages, investments, and activities to date have established a strong foundation that can be built upon. As a country rich in energy resources, perhaps the most compelling benefit of marine

renewable energy for Canada is the potential economic benefits of offering new solutions, services, and technologies internationally. The challenges the global industry faces are the same challenges the Canadian industry faces. Solving w w w. m a r i n e r e n e w a b l e s . c a

M a r i n e R e n e wa b l e s C a n a d a them here means finding solutions for the world. The emerging market is significant, with the International Energy Agency’s Ocean Energy Systems estimating that there is the potential to develop 748 GW of ocean energy by 2050, resulting in 160,000 direct jobs by 2030. Canada’s Marine Renewable Energy Technology Roadmap established in 2011 also recognizes this as a substantial market, targeting Canadian involvement in 50% of world projects and estimating $2 billion in annual economic value by 2030, assuming Canada can establish and maintain a leadership role. Canada is well positioned to tap into this emerging market due to its natural advantage in marine renewable resources, capabilities in marine, offshore, and energy industries and its early leadership in the sector. Worldwide interest in Canada has been growing and is evidenced by international companies seeking and investing in business opportunities associated with tidal energy development in the Bay of Fundy, major wave energy potential on the west coast, and river energy prospects

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throughout the country. Recognizing the opportunities presented by developing Canada’s waves, tides, and rivers, Marine Renewables Canada has worked to advance the development of the industry since 2004. As the national association dedicated to sector advancement, Marine Renewables Canada identifies and fosters collaborative opportunities, provides information and outreach, and represents the best interests of the sector. Our Vision A Canadian sustainable marine renewable energy sector, serving domestic and export power needs and providing projects, technologies and expertise in a global market. Our Mission & Objectives Marine Renewables Canada aligns industry, academia and government to ensure that Canada is a leader in providing marine renewable energy solutions to a world market. To accomplish this mission, our association works to: • Promote development of Canadian marine renewable energy

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industry that will benefit generations of Canadians. â&#x20AC;˘ Foster communication and collaboration between members, industry, academia, government, and the public. 102

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â&#x20AC;˘ Create a focus on innovation opportunities that can result in technology, techniques and services for world markets. â&#x20AC;˘ Develop competitive intelligence and appropriate

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strategic relationships. • Provide education, outreach, engagement and an understanding of marine renewable energy activities and the economic, environmental, and social benefits they present. • Support members and industry by increasing exposure for Canadian companies in the world market and identifying business development opportunities. Marine Renewables Canada’s membership represents an alliance between industry, academia, and government. Members of the association have a broad range of strengths and expertise that can service both domestic and global project needs as the marine renewable energy industry grows. This alliance includes: • Over 70 members, including utilities, project and technology developers, supply and service companies, and researchers. • Engagement of universities and research organizations across the country, as well as local authorities and government. As Canada moves into the next phase of industry development, Marine Renewables Canada will bring together members to apply capabilities essential to industrial-scale development and foster collaboration on common challenges and critical innovations.

Company Information In 2001 BC Hydro pursued the feasibility of wave and tidal energy around Vancouver Island and the BC coast. Resource assessment were completed and early MOUs were signed with international wave energy device developers. A change in Provincial energy policy in 2003 resulted in the cancellation of demonstration project plans.

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Century National Bank

Building on Excellence Written by: Abigail Phillips Produced by: Alex Hortaridis

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Founded in 1886, Century National Bank is located in Dresden, Ohio, and has been providing residents of Zanesville and Muskingum County with banking services for more than one hundred years. Today the bank serves six counties in Southern Ohio and has 16 banking centers in operation and takes pride in providing its customers with world-class customer service. â&#x20AC;&#x153;We combine great services with convenient banking options and extraordinary customer service. You really can expect a difference when you bank at Century,â&#x20AC;? Jody Spencer, VP of the Energy Team. 106

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Century National Bank is listed on the New York Stock Exchange as part of a larger holding company Park National Corporation (PRK). The company is worth approximately $700 billion and operates approximately 11 affiliate banks. Century National Bank is a full service commercial bank offering retail commercial, trust and investment products. The bank is dedicated to providing its clients with the highest level of professional service. In fact, for the past 15 years it has run an investment excellence program, which focuses on its core values of financial success and

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planning. Century National Bank is also ISO9000 certified.

advance the economy in eastern Ohio. “The reason we took a good hard look at the industry is we Embracing Economic Potential believe that the Utica Shell play As a member of the Ohio Oil and in eastern Ohio has the greatest Gas Foundation, Century National opportunity on our local economy Bank has been slowly observing and than anything else in the past,” exposing themselves to the Oil and explains Spencer. Gas industry over the past few years He continues, “We’re business and has been learning how they can people and we want to do well become involved. Recently, the management business and company created its own energy commercial banking business banking team. and we do. We lend more to small One of the reasons Century companies that are buying trucks decided to become involved in the and equipment and we’re picking Oil and Gas industry is because up investment customers as well, the company saw the potential to but the bottom line is the potential w w w. c e n t u r y n a t i o n a l b a n k . c o m

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economic impact that can really change the complexion of some of the communities in eastern Ohio from where they’ve been in the last 75-100 years.” Century proves that even though they may not be one of the big box banks, they can still bring solutions to the forefront that any big box bank can. A Resource Clients Can Trust What makes the company stand apart from its larger competitors is the way they approach the customer’s individual situation and

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McLain Hill Rugg and Associates Inc. strategies guide clients to financial security and success

C e n t u r y N at i o n a l B a n k create a financial solution unique to each customer. “We’re not sitting in big cities and we’re not making a splash but we’re not just going to throw money and go away; we don’t do that. We start it from scratch, we learn the basics and we want to become a resource for clients. I’m sure these big guys are going to do a lot more business than us but I’ll tell you what, the people we do business with are going to be very pleased that we’re taking care of their families for generations,” Spencer I proud to report. “We look at every different angle with partners to be spun off and family dynamics so we can set this up. We had one family just in 2013 just with bonus money at a minimum we saved them over $70,000 in taxes last year just the way we set things up.” Looking to the Future Century National Bank may be a smaller bank, but it has big ambitions. It is looking towards expansion into more counties and plans to do so by offering an unbeatable level of service. “We’re

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one of the largest employers in our market and we’ll continue to be so from a local bank standpoint. We’re looking at new opportunities as well. I see us growing the bank organically and through businesses as well,” says Spencer. Working closely with the Oil and Gas Association has allowed Century to broaden their customer base and the company anticipates continued growth through this new sector. “We are very committed to supporting the industry,” says Spencer. Century National Bank has a dedicated management team who are constantly looking for opportunities in the sector. “We believe that we have been ahead of the curve in regards to supporting the sector and while the big banks are just beginning to catch on we have been working with key players for more than three years,” says Spencer. Every service that Century National Bank provides is with its customers and clients in mind. It takes pride in building relationships with the communities in which it operates, listening to its needs and

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C e n t u r y N at i o n a l B a n k

CNB Energy Banking Team (from L to R) Janice Hutchison, Jeff Jordan, Pat Nash, Jody Spencer, Tom Lyall, Jim Blythe, Beccy Porteus

reacting to that. Century has built a fantastic reputation in the areas in which it serves and looks to continue growing. 110

September 2014

â&#x20AC;&#x153;I think weâ&#x20AC;&#x2122;re going to really see some numbers come out of here in the next five years. We believe by building our energy team, quietly

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Company Information Founded in 1886, Century National Bank is located in Dresden, Ohio, and has been providing residents of Zanesville and Muskingum County with banking services for more than one hundred years. The company focuses on its customers and is dedicated to providing customers with the highest level of professional service. Century offers extended hours in their banking centers plus ATMs, Online Banking, Online Bill Pay and Telebank to make banking simple and convenient. You can really “expect a difference” when banking with Century.

working and trying to meet our banks’ customer needs, building relationships through seminars and providing superb service to people they will continue to tell other people,” say Spencer. w w w. c e n t u r y n a t i o n a l b a n k . c o m

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Compass Solar Energy

Compass Shines Bright in the Sunshine State

The Pensacola, Florida-based has relied on its years of exp to become the sought-after solar installer it is today. Written by: Kevin Smead

Produced by: Jason Wright

perience and strong relationships

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C o m pa s s S o l a r E n e r g y

51 kW at the Hatch Field heliport at Fort Rucker, AL

You might find it difficult to believe that being a solar company in Florida, nicknamed “The Sunshine State,” is actually quite challenging. A lack of state incentives and resistance from utilities make what should be Florida’s biggest industry a risky proposition. And while many other solar companies have come and gone, Compass Solar Energy has remained strong since its inception in 1998. The design-build company takes its projects from concept to completion—and beyond. Principal and Co-founder Dan Gardner believes its years of experience are 114

October 2014

what make Compass successful. “We got into this industry well in front of the curve that started in late 2009 when it really took off,” he said. “We’ve been in it long enough and we were able to work through a lot of the kinks that many companies still have to discover.” Before Sunrise While Compass has always been a company focused on solar, the market was very different in 1998. They began working mainly on solar heating installations for pools and hot water systems. “There wasn’t a lot of happening

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Non-rooftop residential solar is becoming more and more popular (Niceville, FL)

in the solar electric industry in Florida,” Gardner explained. “You had some PV modules that were probably used for the purpose of pumping water and just small operations. It was still a very pricey product so you didn’t have too many folks looking at it.” This was the reality in the industry for many years, though that began to change in the late ‘00s. The industry began to grow in 2007, thanks to federal incentives. While a lack of understanding about the technical aspects of solar made initial recruitment of employees difficult, Compass’ team has grown into an experienced, professional one that is paramount to its current success. “As in any industry, your employees are really the ones that make or break you,” Gardner said.

“As in any industry, your employees are really the ones that make or break you” – Dan Gardner, Principal and Co-Founder

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C o m pa s s S o l a r E n e r g y

Compass Solar crew working on placing panels at Fort

The Advantage of Experience Compass invests in its employees, ensuring all members of the team—installers, salespeople, and supervisors—are trained and fully understand the complex systems they install. New employees are trained in the field for 2 months, regardless of their positions. “They’re going out with the installation teams to work side-by-side with somebody,” Gardner said. “They’re actually out there going through the process, installing the systems, and learning how the product actually functions. They see how it gets attached to buildings, how it gets programmed, and get a full understanding of

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the product.” It’s this knowledgeable and personalized approach that keep people coming back to Compass. Gardner explained that the company’s growth has overwhelmingly come from word-of-mouth business, as its customers appreciate the level at which Compass is committed to ensuring they’re able to get the most out of their solar systems. “Installing solar is not like building a house or something where you can build it, you’re done with it, and you can move on to your next one,” he said. “There’s still a learning curve. You just installed a very complex system on somebody’s business, somebody’s residence, or even on a military base. There’s still a lot of education that comes into play.” Gardner said that no matter the type of installation, Compass maintains and values its relationship with the client. “All of those relationships are very critical to the success of our company,” he said. “You’ve got to be committed to your customer base and just continue to enhance those relationships even after the

projects finish.” Toward a Sunnier Future With many of Compass’ plans looking long term, it’s important for the company to have a vision for the future. While part of Compass’ future involves newer, more efficient tech, the outlook for solar in Florida is more so rooted in energy policy. “We are the sunshine state, we have a huge opportunity, but here, as in most states, there are a lot of battles going on between the utilities,” Gardner said. “Solar is an alternative to them now on a large scale, so you’re going to have the resistance. There’s also opportunity for them, so for us, a big strategy is to try to work with utilities to develop plans and processes that allow us to emerge. If you’re an intelligent utility, you’re really thinking about this, because it’s not going to go away.” Compass relies on both residential and large-scale solar installations to keep its budget balanced, as a constant cash flow from smaller projects allow them to take on some of the bigger ones. One major area of expansion the company is w w w. c o m p a s s s o l a r. c o m

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C o m pa s s S o l a r E n e r g y

exploring is in the Caribbean. “Any time you’re on an island country you have to import solar and other fuels—they don’t have their own source. What we pay in the states is nothing compared to what they pay in the islands, which is why they don’t have a lot of readily available energy,” Gardner said. “So, solar is a big opportunity there. We’re working on several solar farms right now and that’s exciting because there’s a niche group of people that are able

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Company Information Industry

Energy headquarters

Pensacola, Florida founded

1998 employees

60+

to take a large amount of real estate and put a solar farm on it.” Compass is also working to influence solar policy on a local and, eventually, state level. For now, it’s focusing on doing what it’s always done best: providing high-quality solar services to wide range of clients.

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Adobe Facilities

Adobeâ&#x20AC;&#x2122;s World of Sustainabl Written by: Deana Cacus

Produced by: Aaron Wells

le Solutions 121

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Gil C / Shutterstock.com

Adobe is renowned throughout the world for their creative multimedia and software products, but there is more to the company than their IT solutions. Adobe was recently applauded for their impressive sustainability efforts when Newsweek ranked them as the second greenest company in the United States and the third greenest 122

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company in the world. Within the category of IT companies, Adobe was listed as number one, both in the United States and globally. In an interview, Jonathan Francom, Director of Global Workplace Strategic Programs for Adobe, explained that the company has made sustainability a top priority in their operations.

E nergy

“We foster a culture of sustainability through employee involvement,” Francom said. “That’s a key component. We are sustainability thought-leaders, and we’ve been recognized as such. We want to maintain our reputation, which we enhance through responsible business practices, and we enable our customers to be more

sustainable through the use of our products.” Through their software suite, LEED certified facilities and the development of effective sustainability consortiums, the company has aptly demonstrated their focus on bettering our world as well as their understanding of how that can be accomplished. w w w. a d o b e . c o m

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Ken Wolter / Shutterstock.com

A d o b e Fa ci l i t i e s Sustainable products Many of Adobe’s products speak to their sustainability efforts. The company has created EchoSign, a digital signature product that allows users to send and electronically sign documents using a smart phone, tablet or any web browser. EchoSign automatically records and stores the details of each document’s history on the Adobe Cloud platform, and signatures are legally valid and enforceable in countries throughout the world. “For every million EchoSign signatures, we reduce 3 million pounds of wood and two million gallons of water waste,” Francom said. Adobe also developed Adobe Connect, a web conferencing platform for web meetings, eLearning and webinars. The platform can be used on virtually any device and has been utilized by leading corporations and the U.S. Department of Defense. Francom commented on Connect by saying, “Adobe Connect is a telepresence solution. It’s interactive and reduces the needs for travel. We figured out that the biggest

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part of our carbon footprint was employee travel, and it’s also one of the biggest costs, so if we eliminate that, we can add to our earnings per share significantly, and everyone wins.” In alignment with Connect, Adobe launched an initiative in April of this year encouraging their employees to forego traveling in order to reduce carbon emissions. The initiative was dubbed “Skip-a-trip” and challenged Adobe employees to skip a business trip entirely and use Adobe Connect instead. The challenge proved successful, as that month, employees elected to save 31,000 lbs. of CO2 and reduce the company’s carbon footprint. The challenge also saved Adobe thousands of dollars in travel costs. Adobe has several consortiums in place that develop sustainability programs like Skip-a-trip. According to Francom, “In every major site, we have a sustainability council of folks that are passionate and interested in being involved at site level. We’re not just trying to be sustainable as Adobe, but to create a framework and mindset population that transcends Adobe and improves (our world) in general.” w w w. a d o b e . c o m

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Francom added that awareness is key, saying, “You see easier options in populations that are aware. We have 22 green teams in different regions across the globe that communicate about the things that we’re trying to do. They’ve been incredibly successful this year, particularly with Skip-a-trip.” LEED certified facilities Adobe’s facilities are world-class in their sustainability efforts. Many of their buildings incorporate onsite energy production, particularly in the form of wind turbines. The 126

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company is currently building one million square feet of property in India between two campuses and is aiming for LEED certification. Their facility in Utah as well as their data center are both LEED certified at gold status. “There’s one way to build a building that’s very sustainable and just operate it inefficiently, but really, all that design and construction is for naught because you can operate even the best building in a very efficient manner and not reap the benefits of the sustainability of the design,” Francom said. “We’re the

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opposite. We build exceptional facilities and run them even more exceptionally and we’re ensuring that we avoid landfill waste while recycling to the utmost extent. We’re also increasing our demands on the grid as much as possible.” The company has also integrated brand new green technology into its oldest facility, a San Francisco building constructed in 1905 that has been renovated to reach platinum level LEED certification. Adobe has adopted an energymoderating tool engineered by Stern, a company that manufactures devices that merge predictive data analysis with intelligent energy storage. Francom explained Stern’s technology by saying, “You hook the device up to a meter and it reduces peak demand costs over time. In other words, the battery will engage based on the predicted algorithm. Battery power begins when peak demand usage goes up, and in California, there is serious incentive to reduce peak demand. It’s basically proving that embedding sustainability into your practices is good for business and the environment.” Francom reiterated the benefits that green practices bring to Adobe’s bottom line as well as their employee culture. “We sustainably manage our business. We design and build the most creative and innovative and healthy workspaces for our employees and we seek to reduce operational costs and increase productivity through our sustainability initiative.”

Company Information Adobe is the global leader in digital marketing and digital media solutions. Our tools and services allow our customers to create groundbreaking digital content, deploy it across media and devices, measure and optimize it over time, and achieve greater business success. We help our customers make, manage, measure, and monetize their content across every channel and screen.

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CG/LA Infrastructure Inc Written by: Norman F. Anderson, President & CEO

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The North American infrastructure market is poised for take-off, ready to ride the way of three fundamental economic transformations. First, the explosion in energy production has given us a tremendous lift, with natural gas prices at less than $5 MMBtu less then 1/3 of our European and Asian competitors. Second, the tremendous growth in US exports is causing a re-design in our freight infrastructure (rail, ports, waterways, highways and intermodal facilities). Third, the increasing orientation toward transit-oriented communities - particularly among millennials - is creating driving new investments in urban mass transit (heavy rail, light rail and even streetcars) along with social infrastructure (schools and hospitals). CG/LA Infrastructure, a global market maker focused on doubling the level of infrastructure investment focuses on identifying priority projects, and ensuring that those projects go forward optimally as productively and rapidly as possible. Through our Strategic Infrastructure Leadership Forum Series and revolutionary online projects platform, GViP, CG/LA is 130

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bringing order, predictability and even imagination to the global infrastructure marketplace. Strategic Project Identification Norman Anderson, President and CEO of CG/LA Infrastructure and former project developer, founded the company to help countries and regions around the globe become more competitive and successful by making smart, robust investments decisions on strategic infrastructure projects and initiatives. Strategic project identification is the cornerstone of CG/LAâ&#x20AC;&#x2122;s global vision - bringing innovative leaders together from both the public and private sectors to focus on specific projects and push them rapidly forward to completion. CG/LA releases a quarterly market intelligence report, the Strategic Top 100, of the top infrastructure projects, with business opportunities in the next 3-18 months, in regions that complement the next Leadership Forum. The Strategic Top 100 is the cornerstone on which the Infrastructure Leadership Forums

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are built. The most recent report, The 2014 Strategic Top 100 North America list, shows what is actually required – in terms of financial and human resources – to rebuild the competitiveness of North America. Projects were selected over a sixmonth process, beginning with a preliminary list of over 400 projects and narrowed down using CG/ LA’s proprietary ranking model. Comprised only of shovel-ready projects with business opportunities within the next 3-18 months, the 2014 Strategic Top 100 North America is valued at US$369 billion. Download the Strategic Top 100 NA here.

The Infrastructure Leadership Forum Series As a project developer, Norman saw firsthand that the key to both infrastructure project development and business success was leadership. And the Leadership Forum - whether the Global Forum, the North American Forum, the Bahrain/EMEA Forum or the Latin American Leadership Forum - identify and recognize the dedicated and sophisticated executives who develop the strategic infrastructure that defines their country’s futures. The Leadership Forum events w w w. c g - l a . c o m

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Gen. Bostick

C G / LA I n f r a s t r u c t u r e , I n c are differentiators in the industry, gathering a community of 500+ experts around a dynamic projects marketplace. Forum events focus on 11 infrastructure sectors, from highways, to power generation to water & wastewater projects, convening a global community that includes decision makers from all aspects of a project lifecycle: financial lenders and investors, legal, design, engineering, and construction firms, as well as owner operators. Save the Date: 6th North American Strategic Infrastructure Forum On October 28-30, 2014, over 500 executives will gather at the 6th North American Strategic Infrastructure Forum at the Mayflower Renaissance in Washington, DC to meet with the sponsors of the Strategic Top 100 infrastructure projects in North America ($369 billion in total project value). The North American Forum is a dynamic 2.5 day event, focused on infrastructure development in the U.S., Canada, and Mexico,

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while facilitating business and promoting projects across the region. Key Features of the leadership Forum include: • Project Presentations: Rapid project presentations of priority projects, allowing developers to make targeted presentations focused on their needs and business opportunities. • Private Meetings: Prescheduled private meetings system allows registrants to pre-schedule up to 10 meetings with project sponsors and Forum speakers, for the second day of the Forum. • Workshops and Roundtables: Thought leader discussions and debates on critical issues, fundamental for thinking about and building great infrastructure. • Community Building: Receptions, Special Breakfasts, and especially GlobalViP allow you to build strong relationships with project developers and sponsors, and experts throughout the global infrastructure community. GlobalViP (GViP) GViP harnesses the energy of the Infrastructure Leadership Forum w w w. c g - l a . c o m

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Series, taking it online for users to access 24/7/365. GViP brings together nearly 1000 (10,000 by the end of 2014) infrastructure experts as a Just in Time resource for project managers to identify and access critical expertise - when they need it, and how they need it. GViPâ&#x20AC;&#x2122;s algorithms cut down project development costs by 60%, and diminish the time required to develop a project by 50%. This translates into significant costs

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savings -- and also generates productivity increases that exceed 100%. Join GViP and access this thriving community of infrastructure experts today. About Norman Anderson As President and CEO of CG/LA Infrastructure, Norman Anderson has 35+ years of competitive project identification, advising strategic infrastructure investment, and conducting regional analysis

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Company Information Industry

Energy/Construction headquarters

1827 Jefferson Place NW Washington DC 20036 USA

on energy projects worldwide. As the Founder and President of CG/LA Infrastructure, Inc., Norman oversees the development and execution of CG/LAâ&#x20AC;&#x2122;s proprietary analytic and regional infrastructure demand models, the successful Leadership Forum Series which selects, highlights, and hosts four regional events focused on infrastructure project investment. He is a member of both the World Economic Forumâ&#x20AC;&#x2122;s Global Advisory Council on Infrastructure and the Strategic Infrastructure Initiative and is fluent in English, Spanish, Portuguese, and Guarani.

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ABRAGEL:

Associação Brasileira de Geração de Energia Limpa

Written by: Capitare Assessoria de Imprensa Produced by: Danilo Stefanelli 137

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T Charles Lenzi, Executive President of ABRAGEL

“The clean and renewable sources (PCH´s, Wind, Solar and Biomass) can reach 20% of brazilian electrical system in the next 10 years.” – Charles Lenzi, Executive President of ABRAGEL

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he Brazilian Association for Clean Energy Generation – ABRAGEL, has 14 years of experience in clean and renewable electric power, trough Small Hydroelectric Centrals (PCH´S). Nowadays, the PCH´s represents 3,58% (4.677 MW) of the Brazilian electric sources, with 467 ventures in action. Currently, there is a significant potencial to be explored, with almost 1.000 basic projects, witch represents nearly 10.000 MW in actual capacity. The PCH´s are distributed over almost all national territory and located pretty near to consumption centers. This feature implies in several tecnical advantages for the brazilian electric system operation, especially for a more efficient use of transmission lines, in order to increase the development of local communities. Due to it´s constructives carachteristics, witch demands reservoirs with small flooded area, the environmental impact is reduced and the benefits of environment programs developed by companies, like reservoirs boards reforestation, continuous monitoring of water, fauna and flora quality and environmental compensation, supplant the flooded areas, reducing local impacts produced by it´s deployment. Still in the environment point of view, the PCH´s are the alternative source that most presentes lower greenhouse gas emission, considering the hole productive chain of each source. The operating system of the PCH´s is very stable in terms of power and energy, due to it´s

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diversity and apportionment trough several country regions, with could help in some additional generation because of it´s predictability power and it´s lowest global cost. “Brazil has developed a 100% natural production chain with a tecnology that represents the actual state of art int terms of Small Hydroelectric Centrals. There are lots of enterpreneurs investing in projects and studies development with the expectation of building their own plants. The actual potential is huge and it´s located in some regions wich have a concentrated energy demand. This is very important, because representes one of the biggest advantages of the PCH´s over other sources: the fact that it is located near loading centers, optimizing financial costs with transmition and reducing the loss. This benefits need to be correctly valued”, says the presidente of Abragel, Charles Lenzi.

Alto Irani PCH, SC w w w. a b r a g e l . o r g . b r

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Arvoredo PCH, SC

ABRA G EL

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Plano Alto

Now, the biggest challenge of Abragel is to resume the importance of PCH´s like a valuable option for the electric system expantion in a clean and renewable way, defending the existence of a long term program that ensures the permanent growth of PCH´s, trough a minimum hiring of development properties by means of different auctions, with enables the maintenance of local productive chain, consolidated over several past years. “Today, the energy selling option in the market trough auctions promoted by the government is the best option for enterpreneurs, because the free market is not enabling long terms contracts, with precludes some projects funding”, explains the President of Abragel. ABRAGEL has worked directly with all the agents of the chain, searching for solutions that promote the economic viability of the projects, actively participating af all the debates about law improvements and environmental w w w. a b r a g e l . o r g . b r

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Paranatinga II PCH

licensing, and even of some systemic analysis of projects developed by the regulator and the definition of ceiling price for the energy market. “It is very importante that we work to reduce the PCH´s development cycle, witch can be over 10 years, making easir some procedures and, consequently, reducing costs and increasing competitiveness”, highlight Lenzi. “The clean and renewable sources (PCH´s, Wind, Solar and Biomass) can reach 20% of brazilian electrical system in the next 10 years. Besides that, they are complementary sources and shouldn´t compete among themselves. We need to work so each source can be explored acoording 142

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Company Information Industry

Energy headquarters

Brasília, Brazil founded

July 2000 No of members

124 Key people

Executive President: Charles Lenzi

to their peculiarities”, reinforces the presidente of Abragel. Brazil has a big potencial, tecnology, competece and profissional capacity to develop even more the PCH´s market. This source is consolidated as efective, reliable and clean energy, and that´s why it is inserted in the Decennial Energy Plan 2021 of EPE.

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ABCE: Brazilian Association for Electric Power Companies The oldest and most traditional eletric power association Written by: Alexei Macorin Vivan | Produced by: Danilo Stefanelli 145

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T Carlos Ribeiro, XIX Legal Symposium

Alexei Vivan, XIX Legal Symposium

he Brazilian Association of Electric Power Companies – ABCE is the oldest and most traditional Brazilian electric power association with 78 years since its foundation and represents electric power generation, transmission and distribution companies. The associated companies of ABCE are the largest State owned and private group of companies of the Brazilian electric power sector. ABCE has a corporate structure of an Associated Members Meeting, a Board of Directors with Carlos Ribeiro as President and an Executive Board with Alexei Vivan as CEO. ABCE also has three committees (Legal-Regulatory, Environmental and Tax). ABCE has also teaching activities with courses and seminars about the electric power sector. The Power Electric Legal Seminar is in its 20th edition. The course about Electric Power Fundamentals for Non-engineers, the Electric Power High Executives Meeting – ENALTESSE and the course about Electric Power Accounting for nonAccountant are foreseen to occur in 2014. There is also the annual Physics and Regulatory Aspects of the Electric Power Sector Course. For 34

“The hydroelectric impact is lower than the one caused by other sources of electric power generation considered its potential and capacity of generation”. – Alexei Macorin Vivan, Chief Executive Officer of ABCE 146

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years ABCE has being delivering the Eloy Chaves Medal which awards large, medium and small electric power companies with good practices to prevent and reduce labor accidents. Brazil has the largest hydrographic basin of the world with the highest hydroelectric generation potency. More than 90% of the Brazilian electric power generation comes from hydroelectric. ABCE has worked searching solution for the complex

ELOY CHAVES award Created in 1980 by ABCE to reward eletric power companies all over Brazil

Due to his appreciation of workers and greater companyâ&#x20AC;&#x2122;s assets that the name of Eloy Chaves (1875-1964) was chosen to name the award. The politician and businessman of the energy sector was a pioneer of social security due to the Law Eloy Chaves, of 1923, that favored workers from SĂŁo Paulo rail network and it was the basis of the INPS in Brazil (National Social Security Institute).

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Book of ABCE’s 70 years

electric power scenario with low rain, low level of the water hydroelectric reservoirs and reduced hydroelectric generation which has demanded the most expensive thermoelectric generation. ABCE has deeply acted before the National Congress during the process of conversion of the Presidential Decree (Medida Provisória) 579 into Federal Law 12783/2013 which has defined the new rules for the electric power concession renewal and for the purchase and sale of electric power to the captive and the free energy markets. One of the great achievements of ABCE during such process was the acceptance by the Federal Government to indemnify the electric power transmission companies for the assets they built before May 2000. However, such indemnification has not being paid yet. According to Mr. Vivan, ABCE CEO and energy specialist attorney, “ABCE defends all sources of electric power generation, specially the hydroelectric power plants with large water reservoirs, in view of its electric power generation 148

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potential, clean, renewable and cheaper source, that allows accumulate water for dry seasons, waterways, flood control, irrigation and gives reliability on the electric power generation system. Mr. Vivan recognizes that all sources of energy generation causes environmental impact, however “the hydroelectric impact is lower than the one caused by other sources of electric power generation considered its potential and capacity of generation.” ABCE also presides the Electric Power Sector Environmental Forum – FMASE which is the main entity that discusses the environmental and sustainability issues before the Federal Government and the Nation Congress. ABCE states that some premises are indispensable to unlock investments in the Brazilian electric power sector as the legal stability (to avoid frequent change of laws), the fulfillment of contracts, the economic and financial contractual equilibrium, the adequate power electric tariffs and the predictability of the environmental licensing process. “The Brazilian Federal Government has pursued electric power tariff reduction what is beneficial for population and favorable for the Brazilian industry competitiveness. Nevertheless, it is necessary to pay close attention to the fragile equilibrium between low tariffs and electric power generation security/reliability. The pursuance for the lower tariff at all cost avoids investments when the venture return does not compensate the business risk to invest”, ends Alexei Vivan.

Company Information Industry

Energy headquarters

São Paulo, Brazil founded

April 3rd, 1936 Number of members

26 companies and group of companies Management

President of the Board: Carlos Ribeiro Chief Executive Officer: Alexei Macorin Vivan

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AJ Lucas:

As it Grows, Lucas Maintain High Quality and Standards

By offering solutions, and not just services, Lucas is the p industries on an increasingly global scale. Written by: Kevin Smead Produced by: Wayne Masciotro

ns its s

partner of choice in a number of

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Eastern Star Gas Narrabri

E nergy

IF YOU WERE around for the founding of Lucas in the 1950s, you might not recognize it now. What started out as a building subcontractor is now a multi-faceted business with three distinct arms: investment, construction, and drilling—and a leader in each one. Lucas was a pioneer of horizontal drilling in Australia and is now a world leader in the highly specialized technique. It’s used this expertise to break into alternative sources such as a coal-seam gas and via its investment arm, has operations in the U.S., U.K., and around the world. Some things don’t change, though. After 50 years, Lucas is still a respected, trusted company. And while they certainly excel at the technical side of drilling, their approach to the industry as a whole really sets them apart. A Solution-based Approach It starts with Lucas’ belief that they

offer more than just services. “We’re seen very much as providing engineering solutions,” General Manager for Business Development Daniel Sweeting said. This is paramount to how Lucas operates, as it generally tackles jobs that require expertise and careful engineering. “We many companies can perform the easy jobs, such as setting up on one side of the river and coming out on the other. The jobs that we win are usually very complex and higher risk,” Sweeting said. “So, jobs like cascades, where we drill out of a Class-A nature reserve and intersect a tunnel that’s 70m below the ground 3m in diameter, 2.4ks away—those are the sort of jobs that we win. Lucas has a long history of completing those sorts of jobs in Australia.” Sweeting cited “the experience that’s been built up over the last

“Many companies can do the easy jobs, such as setting up on one side of the river and coming out on the other. The jobs that we win are usually very complex and high risk.” w w w. l u c a s . c o m . a u /

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AJ L u c a s forty years” as what allows Lucas to not only take on more difficult jobs, but complete them in an efficient, smarter fashion. They accomplish this by tackling projects from several angles. “I think Lucas is really inquisitive by nature,” Sweeting said. “We look at different industries and the different technologies they apply. We seem to have quite a good history of cherry picking things out of different industries and then focusing that on our customer’s

supplier profile

need.” This allows Lucas to tailor the approach based on the project. “We don’t have necessarily a solution that says, ‘Here’s the Lucas solution and that’s good for everyone,’” Sweeting said. “We look at a client’s problem and take experience from various industries and apply it to that problem. The most prevalent example of that is taking experience from HDD (horizontal direction drilling) and applying it to long inseam holes for our mining clients.”

company name

In our experience, CSG drilling operations should be best viewed as a manufacturing process. Our solutions enable engineers, DD steerers and geologists to supervise and control drilling operations from a distance. With our DMS system an emphasis is placed on iteratively improving the efficiency of lateral well designs and drilling procedures so that each consecutive well is cheaper to drill than the one before it. DMS provides integrity cross checking and comparative performance measurement capability.

Website: www.enspec.com/

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AJ L u c a s

“Rather than saying ‘This is our portion of the work’ and being happy with that in isolation to everything else, we actually work with our clients to provide an end-to-end solution.” Ultimately, for Lucas, finishing a project is more than just ticking a box—it’s about finding a workable solution to an initial situation presented by a client. “We find more and more we’re not competing with other companies,” Sweeting observed. “We’re to finding solutions that fit within our clients very strict budget constraints.” A Culture of Values While working to find solutions, Lucas employs a strong set of values that permeate all aspects of the business’ culture, which was born from a consolidation of several different examples. On the drilling side, Lucas began as Lucas Coal Technologies in 2000. During the next few years, Lucas purchased three other drilling companies. This led to four different 156

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companies with four distinct cultures all working together. “Over a period of about 2 years, we combined it all together to create one culture,” Sweeting explained. Where Lucas saw the biggest improvement was in the implementation of safety measures. “We’re quite proud of our safety record,” Sweeting said. “Currently, we have a TRIFR score of about 7, which is industry best practice for our field.” Aside from reduction of costs, greater efficiency, and other benefits operating as a safe company affords, Sweeting believes it means more than that. “There’s a moral obligation,” he said. “We have people who work for us and it’s our obligation they have a safe working environment and go home as fit and healthy as the day

E nergy

they started working for us.” Lucas has learned the best way to achieve this begins with a deep understand of what the project entails. “The fact is, if an employee understands the task they’re about to perform, the risk in that task, how to avoid it, and if we give them the skills to do so, not only will they be safe and have some control over their own safety, we’ve found that 9 times out of 10, it’s the most efficient way to do the job,” Sweeting said. “You don’t need to focus on safety by itself; you need to focus on the task and where the risks lie. By doing that, safety and productivity go along as one—they’re very much joined at the hip.” Another major concern of Lucas’ is the environment, especially when it comes to extensive pipeline jobs. “We’re constructing on sites that we have total responsibility for so it’s very important to us that we meet those standards,” Sweeting said. While having high environmental standards gives Lucas a better chance of getting more jobs in Australia, they aim to be an exemplar for the industry as a whole. “Part of the problem is when you find

a company that doesn’t adhere to the rules and actually causes a mess, putting a blight on the whole industry,” Sweeting said. “We certainly don’t want to be the company that gives some of the industry’s detractors a reason to be extremely negative about its ability to self-regulate.” This is particularly important, since Lucas often works on leases which are owned and operated by other companies. “Whoever it may be, we need to show that we have a system where we can regulate and demonstrate our group’s performance and the ability to actually mesh and uphold the standard they have committed to the local community or the government,” Sweeting said. Working Better Together Maintaining these high standards is important to Lucas, since they work with a lot of different partners across various industries. On the pipeline side, Lucas has had a joint venture for 17 years and counting with onshore pipeline and facilities contractor Spiecapag. “Where a pipeline job maybe too big for us, or for Lucas to perform w w w. l u c a s . c o m . a u /

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AJ L u c a s in its own right, we’ll partner with Spiecapag to deliver to our clients,” Sweeting said. “It’s proven to be a very successful relationship that’s been fostered and valued within Lucas for many years now.” Lucas also holds several investments in subsidiaries, one of which is U.K.-based exploration drilling company Cuadrilla. Through Cuadrilla, Lucas has partnerships with a number of different companies, making it quite important to the investment

side. Lucas holds a 45 percent equity interest in the company and since 2007, has invested a net $91 billion in it. Other international partnerships include one with the China Petroleum Pipeline Bureau, and both parties are of often in talks on where they can benefit each other from the relationship. “We’re currently doing a job in Hong Kong in which Lucas actually held key positions on HDD and we’re helping them deliver quite a technically challenging HDD project over

E nergy

there,” Sweeting said. So, what makes Lucas a company in such high demand? According to Sweeting, it’s their willingness to deliver on a project from conception to completion. Sweeting gave the example of a client of ten years for which Lucas only initially performed one small part of the process. “Now we do the whole lot from beginning to end,” he said. “We give them forward budgets for each portion of the work, a timeline for completion, and we actually complete the total package of the work, commissioning the work ourselves and handing it back over to the client.” The process doesn’t end there, however. “We continue to monitor performance for them over time,” he continued. “Rather than saying ‘This is our portion of the work’ and being happy with that in isolation to everything else, we actually work with our clients to provide an endto-end solution.” More and more companies are taking notice of Lucas’ solution-based approach to operations, as well. While it hopes to maintain its high quality and standards in the short term, the long term outlook is to expand internationally on a more permanent basis, rather than just for a project. We’re being pursued by companies from South Africa, China, Russia, and Europe, to actually provide more directional drilling solutions as opposed to just exploration solutions,” Sweeting said. “We’re looking at all those now and looking at which may be best for us.”

Company Information Industry

Energy headquarters

Queensland Australia founded

1950 employees

400+ revenue

$350 Million products/ s e r v ic e s

Founded in Sydney in the 1950s, Lucas was at first a highquality building sub-contractor. Subsequently, Lucas has nurtured its engineering intellect to supply specialist, niche engineering, construction, and drilling services to the key sectors of energy, water & waste water, resources (specifically coal) and public infrastructure.

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TAG Oil:

TAG Oil: Canadian O New Zealand Run

Merging the best of Northern and South Written by: Ian Hanner Produced by: Wayne Masciotro

Owned,

hern Hemisphere exploration 161

TA G Oi l

Aerial view of 2013’s Ngapaeruru exploration.

BY BLENDING PRODUCTION styles from Canada and New Zealand, TAG Oil has managed to find a sweet spot for operations in the Southern Hemisphere. TAG Oil was founded in Canada in 2002 by Alex Guidi with the express purpose of exploration in New Zealand. While trading on the Toronto Stock Exchange, the company invests nearly 100 percent of their capital in the development of projects in their host country. Though a relatively small company in the world of oil production, Chief Operating Officer Drew Cadenhead says the company has no problem 162

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competing in their niche market. “We are the most active explorer in New Zealand and have had good exploration success over the last few years,” Cadenhead said. “A very strong financial position [has us] positioned well for future growth into the next few years.” Cadenhead’s optimism is not without merit. TAG Oil has seen tremendous growth in the last decade. TAG Oil was “relatively inactive” for the first seven years of its existence, according to Cadenhead, who used to be the Chief Executive Officer. “We were just JV partners with

A ustralia

Hydrocarbon storage tank at TAG Oil’s Sidewinder Field

some other companies, so once we took control of things ourselves and we were getting much more active operationally, I switched from CEO to COO,” he said. “I relocated myself and my family back to New Zealand to run all of our operations here. Our CFO at the time, Garth Johnson, took over the role of CEO up in Vancouver.”

Cadenhead’s expertise comes from several decades of experience working for various exploration companies in both Canada and New Zealand. He also holds a Bachelors of Science Degree in Geology from the University of Calgary. Now tasked with the direction of TAG Oil’s operations in New Zealand, he’s putting his skills to work.

“It is something that’s very important to us: our perception as a good corporate citizen; as a very safety and healthoriented company. Our record is impeccable here and it’s very important for us to maintain that record.” w w w. t a g o i l . c o m / d e f a u l t . a s p

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supplier profile

Company name

Employees: Xxxxx Established: Xxxx Industry: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Management: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Website: address goes here as the last entry

A ustralia

“Our niche here in New Zealand is to run our company as a small nimble junior company-- sort of like a Canadian model, not surprisingly,” he said. “What we found was that there were a number of Majors down here, [such as] Shell and some of the big Australian companies, mainly focusing offshore. No one was really focusing on-shore where there’s some really nice oil. In particular, shallow oil plays, so really kind of up our alley as far as what we were familiar with as Canadians working in Calgary.” One of TAG Oil’s strongest plays is in the Taranaki Basin. The only sedimentary basins in New Zealand to have been commercialized to date, the company has invested heavily in the region with three plants and a wholly-owned network of pipelines just east of the field. From there, everything ties into their mother facility, the Cheal plant. The drilling operations in that region produce between 2,300 and 2,500 barrels of oil equivalent per day, securing a steady cash flow. According to Cadenhead, TAG Oil will be producing in that region for years to come having only drilled

roughly 25 percent of the company’s total acreage. “If we were to stop drilling here today, the oil would keep flowing for about another 10 to 15 years,” he said. “They’re nice long reserve life, index fields. They produce very well.” Speaking about new drilling operations in the region, he added, “These wells will cost us about $3 million to drill and complete and tie in and we’ll get a net present value out of these wells of somewhere between $10 to 30 million. It’s really a great little play for us.” The success of smaller scale, but very stable operations in shallow plays like these, has afforded the company the ability to develop higher risk operations. With reportedly zero debt and about $50 million in reserve, TAG Oil is looking to explore deeper targets in the region. According to Cadenhead, there are numerous reservoirs situated at depths of between 4,000 and 5,000 meters. With larger pool sizes, he estimates the value of each of these wells would be closer to $20 million. With stable cash flow from the w w w. c o m p a n y u r l . c o m

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Working in partnership with our customers providing safe, efficient and cost effective crane and transport solutions. Ian Roebuck Crane Hire Limited are proud to be associated with Tag Oil and Webster Drilling, supplying their crane and trucking requirements for the Drilling Programme throughout New Zealand.

Office (06) 758 7259 | Fax (06) 758 1827 105 Corbett Road, R.D. 3, Bell Block, New Plymouth 4312 PO Box 3086, Fitzroy, New Plymouth 4341

www.ianroebuckcranehire.co.nz

WESTEND HIRE

Centre

EQUIPMENT HIRE

Since 2009

We specialise in onsite equipment servicing to the oil/gas and farming industries in the greater Taranaki area. We are well-known for the prompt, reliable and friendly service and our willingness to go the extra mile to get products and equipment to suit the client’s speciﬁc needs.

ENGINEERING CONTROL LIMITED

A leading petrochemical open systems integrator since 1997 Providing Process Control and Automation Services to the Oil and Gas Industry: • Control Systems Consultancy, Engineering and maintenance • Control Systems Technology Consultancy and Supply • Control Systems Integration • Functional Safety Consultancy and Engineering

140 Juliet St, Stratford

Ph: +64 800 123 553 Enquiries: gavin@westendhire.co.nz www.westendhire.co.nz 168 October 2014

P: +64 6 757 5562 | E: manager@ecl.co.nz 166 Powderham Street, New Plymouth 4340, New Zealand

www.ecl.co.nz

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Taranaki Basin, the company has been able to turn its attention to other regions yet to be developed, such as the East Coast Basin. “[The East Coast Basin] clearly has a working hydrocarbon system,” Cadenhead said. “We know that because there’s 300 or 400 oil and gas seeps where oil and gas is actually gurgling out of the ground. So we know the kitchen is working there and we recognized that about five years ago and secured a very large land base-nearly 2 million acres.” He estimated it would take about three years to gather enough data and drill enough exploratory wells to prove commercial viability, but according to Cadenhead, several independent engineering assessments have indicated that the company is sitting atop reserves in the billions of barrels. “It just remains to be seen if it can be cracked,” he said. “We’re the only ones trying to crack it. It’s one of the main reasons the shareholders in TAG are keeping their fingers crossed and hoping for a hit over there, as well as the good work that

we’re doing in the Taranaki Basin.” The small staff size at TAG makes the company’s successes thus far even more impressive. With only 25 employees in New Plymouth, TAG’s revenue for the 2014 fiscal year was just over $2.3 million per person. Over the last five years that the company has been growing, the staff has been hired on one-byone, with only two people leaving the company in that time span, according to Cadenhead. “We have a lot of fun here,” he said. “It’s a really loose atmosphere and because it’s such a small group, we don’t get bogged down in red tape and paper work. We just yell at each other down the hallway instead of sending memos around. We chat around the coffee pot. It really is a small family type of [operation] here.” As a foreign entity operating in another country, TAG Oil has to be extra careful about their perception as good for the community. With a very active role sponsoring both local academic and sporting organizations, the company tries to make it clear that they’re trying to give back to their host country.

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The process isn’t easy though. Cadenhead pointed out that in recent year, the oil and gas industry has come under scrutiny from the public in a way that it hasn’t before. “It’s probably one of the biggest challenges for us, to tell you the truth, and one of the biggest risks is getting permission and consent to drill wells,” he said. “It’s something we put a lot of effort into and I can honestly say many, many more times the effort than we [put into it] just four or five years ago. It 170

October 2014

just wasn’t a consideration. It has become a consideration. And that’s not just here in New Zealand; that’s a global phenomenon.” He added, “It is something that’s very important to us: our perception as a good corporate citizen; as a very safety and health-oriented company. Our record is impeccable here and it’s very important for us to maintain that record.” The natural gas produced by the company doesn’t just benefit New Zealand by introducing jobs and

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taxable revenue. Since TAG Oil doesn’t own a facility to liquefy natural gas, all of the natural gas produced in the country is sold in New Zealand without the added costs accrued by shipping overseas. Meanwhile, the company’s crude oil is shipped to primarily Asian markets such as China, Japan and India, which require oils with very low sulfur content, and sold at a premium. From there the company imports cheaper oil back from the Middle East to refine into gasoline and diesel for use in New Zealand. “We’ve got the choice of either consuming that oil here or shipping it offshore,” Cadenhead said. “There’s an insatiable thirst for oil in the Southeast Asia part of the world. It’s a great place to find oil. It’s a great place to find high quality oil in particular. As I said, we’re netting back on our oil sales here probably close to $80 a barrel right now.” Cadenhead said he could see the company taking a number of paths in the decade to come. Most exciting would be proving commercial viability on their unconventional plays in the East Coast Basin. “If the unconventional play starts to work for us and we can have success with the proof of concept of being able to flow hydrocarbons from those multi-billion barrel reservoirs that we see over on the East Coast Basin, that’s a completely different ball game,” he said. “Most likely, TAG, at the size that we are, would get bought out by a Major at that point.”

Company Information Industry

Oil and Gas headquarters

Vancouver, Canada founded

2002 employees

25 revenue

$57,546,899 (2014) products/ s e r v ic e s

TAG Oil is a Canadianowned exploration and production company for both oil and gas that operates exclusively in New Zealand. By merging the styles of both countries, the company has been able to solve problems no one else has, becoming the busiest explorer in New Zealand. With a small staff size, the company is able to stay highly-adaptive to an evolving energy market and act fast to capitalize on growth opportunities.

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A Sustainable &

Self-sufficient Sugar Mill:

Renewing the Guatemalan sugar-cane industry with substantial energy and operations.

Written by: Rebecca Castrejon Interview by: Taybele Piven Interviewee: Fraterno Vila, CEO of Corporation San Diego

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C o r p o r at i o n S a n Di e g o A Family Business United by Sugar

C Corporación San Diego and the communities of Guatemala

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orporation San Diego is a sugar-cane production company based in Guatemala. Its history goes back to the 1940s when Faterno Vila Betoret, business executive and founder of Ingenio San Diego, opened this sugar mill as part of his corporate vision of elevating the country’s agribusiness. During the first harvest, San Diego produced around 300,000 tons of sugar. By 1960, Vila Betoret decided to open a new mill with an installed capacity of 60 thousand tons of sugar production per year. With the company’s growth, a second generation of entrepreneurs joined San Diego in the 1980s. Among them was the current CEO of the company, Fraterno Vila Giron, who soon enough was involved in the administrative business-family sphere. His first major acomplishment was the acquisition of a small sugar mill with a great strategic location: Ingenio Trinidad. The new acquisition provided competitive advantages to the corporation because of its proximity to the port and by producing 72,000 tons of sugar cane per harvest. “We are a family business which was originally directed by my father. He established the foundation of this company,” says Vila Giron. In 2010, the original sugar mill “San Diego” was closed in order to consolidate all operations into one venue. The company chose Ingenio Trinidad

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because of its location, logistics, security, and production capabilities for the future. A third generation of young executives joined San Diego in 2012. Additionally, the corporation hired external talent and corporate consultants to mediate operations. â&#x20AC;&#x153;Since the founding of the company we have tried to keep certain parameters, certain lines according to our code of ethics and what defines us in values and principles. We follow five fundamental standards, which are: integrity, respect, work, unity, and sustainability,â&#x20AC;? said the CEO.

Aerial view of Ingenio Trinidad

Machinery imported from India, Japan and England

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C o r p o r at i o n S a n Di e g o

Energy production, an added business of San Diego

Suppliers with Value CorporaciĂłn San Diego has maintained the same company ethics with all business partners, including suppliers. Many of their raw material is essential in the daily life of the sugar factory, from cane (its primary input during a harvest cycle of six months) to international equipment. â&#x20AC;&#x153;Our suppliers have been very efficient and serviceable with us. In some cases, they have sacrificed their utility sales to meet our demands,â&#x20AC;? he said. Additionally, the machinery that the company requires for daily activities, such as boilers, power generation equipment and milling material, has

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been imported from India, Japan, and England as a result of collaboration with foreign suppliers. Energy Self-sufficiency The family business experienced substantial growth after introducing a new business model: the cogeneration of energy (CHP). Around 30 percent of this resource is used for the plant’s self-consumption while the rest is used for external sales. Since early 2013, Corporación San Diego has commercialized their energy produced in the sugar factory in addition to resources purchased from generators. As a result, both the corporation

This year, they produced more than 161 thousand tons of sugar

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C o r p o r at i o n S a n Di e g o and the generating company have increased profits thanks to the large amount of sales in Central America. San Diego has strengthened operations and reformed its international strategies with the opening of commercial branches in El Salvador with the opening of this new business in the energy sector, As for their exports, the corporation is conducting thorough market research in Mexico and Central Americaâ&#x20AC;&#x201D;where it expects to invest in the next couple of years. â&#x20AC;&#x153;Approximately 10 years ago, we started to sell energy. Last year, we sold more than 18

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megawatts per hour and in the next two years we expect to sell 85 megawatts per hour,” says Vila Giron. A Responsible Sugar-Cane Mill Guatemala holds a great importance for the family business, Therefore, its procedures are friendly to the environment and it supports the community with socially-responsible programs to improve their quality of life. “We want our partners, employees, suppliers, and even the government—but specially the surrounding communities— toperceive us as an efficient, highly responsible, and sustainable business,” he says.

“This month we exported more than 30 percent of the energy produced in Central America” – Fraterno Vila, CEO of Corporación San Diego

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C o r p o r at i o n S a n Di e g o

They hope to produce between 245 and 250 thousand tons of sugar in the next two years

Ingenio Trinidad Production Goals In 1980, the company produced 72 thousand tons of sugar. Now it produces more than 161 thousand tons of sugar cane during the harvest. â&#x20AC;&#x153;We hope to produce between 245 and 250 thousand tons of sugar in the next two years,â&#x20AC;? says Vila Giron.

Sugar-cane plant

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Commercial and Organic Expansion In the past three years the company has been reaching positive numbers with the introduction of new businesses and their development in foreign markets. They are hoping to complete this expansion in 2016, begin the path of

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consolidation, and add new units or added value products such as alcohol and refined sugar. “We are convinced that a productive and efficient company can contribute to the welfare of its members, associates, and the community. In addition to this, we want to assist both the country and people with improvements,” says Vila Giron.

Company Information Industry

Production and commercialization of sugar and energy headquarters

City of Guatemala, C.A., Guatemala founded

“Although our company is not the largest one in the country, we have high prestige and a lot of respect in and out of our sector. This is an extremely valuable group and this is what we have tried to convey to our children, who in the future will be leading the company”

1963 employees

2,500 – 4,500 revenue

USD +$200 million website

www.sandiego.com.gt

– Fraterno Vila, CEO of Corporación San Diego

https://twitter.com/Indurama__ w w w. s a n d i e g o . c o m . g t

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