Energy Digital - September 2015

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September 2015

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Oil Stocks to Buy Today CHRIS BALL Leading with Integrity SPECIAL R E PO R T

Can OIL & WATER really mix?

Distribuidora de Electricidad Delsur

MORE POWER FOR EL SALVADOR



DIRECTOR’S COMMENT

“Stocks are beginning to reach the equivalent value of their commodity counterparts. That means that opportunities are beginning to emerge in stocks that rely upon their underlying commodity prices” – Daniel Dicker for TheStreet.com

I T ’ S N O S E C R E T T H A T the continuous fluctuation of

oil prices has caused quite a panic across the stock market and global commodity prices everywhere but there is a silver lining to this commodity cloud: many stock prices are at an all-time low—and investors should take advantage. In this month’s Top 10, we reveal 10 energy stocks to buy today. Each has seen a high percentage return over the past few months, and each has at least one industryimpacting project either in the works on or the horizon—not to mention what may be the lowest open price the market will likely see for quite some time. This month’s issue also features a profile on TGOOD Australia’s new CEO Chris Ball, the leader with a focus on integrity, as well as a piece from ProSep CTO John Sabey on the potential for California’s oil and gas sector to provide a partial solution to the state’s ongoing water problems. Maybe oil and water do mix!

Enjoy the issue!

Jennifer White Director of Content, WDM Group jennifer.white@wdmgroup.com 3


Features

CONTENTS

6

LEADERS

CEO Profile: Leading With Integrity, Chris Ball

R E N E WA B L E S

12

4

Water, Water, Everywhere!

September 2015

TOP10

Energy Stocks To Buy Today

20


34 44

100 Oman Electricity Transmission Company

CIVMEC

64

Distribuidora de Electricidad DELSUR

Polaris Infrastructure

116 Atlantic Energias Renovรกveis

88

Company Profiles

CWP Renewables

74

T ransfield Worley Power Services

MIDDLE EAST

BRAZIL

34 Oman Electricity Transmission Company

88 Atlantic Energias Renovรกveis

AUSTRALIA

AMERICA LATINA

44 CIVMEC

100 Distribuidora de Electricidad DELSUR

64 CWP Renewables 74 Transfield Worley Power Services

116 Polaris Infrastructure

5


CEO PROFILE

CEO PROFILE LEADING WITH INT

CHRIS BA

The new visionary behind T W R I T T E N B Y: J E N N I F E R W H I T E

6 September 2015


TEGRITY

ALL

TGOOD Australia 7


CEO PROFILE “OVER THE NEXT 10 years, it is going to be interesting to see how major market leaders will be challenged by new emerging companies that are allowed to think differently than the ‘way it has always been done,’” said TGOOD Australia’s CEO Chris Ball. Claiming one of the spots as a “major market leader” is TGOOD Global, the No. 1 prefabricated electric power solutions corporation in the domestic Chinese market. As part of its parent company TGOOD Global, TGOOD Australia is able to provide customers with the fastest, most costeffective power transmission and distribution solutions in the region. The company asked Ball to join the team as TGOOD Australia’s CEO in June 2015, an opportunity that was quite well-timed. As energy industry continues to grow, the anticipation of being able to help shape this growth as a global presence is nothing short of exciting. “I think we are in the middle of a major shift in what roles organisations will perform in the energy industry,” said Ball. “Operators, end users, suppliers and EPCs all make up the mix of delivering projects; however, 8 September 2015

the clearly defined boundaries of expertise do not exist anymore.” A new path in energy Being offered the position of CEO at TGOOD Australia also made sense for the progression of Ball’s career within the energy sector: With an unblemished reputation and incomparable market reach, the brand was a natural fit for the leader. After spending six years in account management and sales for the food and beverage industry, Ball joined Shell Australia, where he was first introduced to the “downstream” world of energy, i.e., the commercial trading and selling of energy. He then spent some time at GE Energy as the sales director for Australia and New Zealand industrial solutions before joining Siemens as the national sales lead, first in the power distribution division and then in energy management. But the ambitious executive wanted more. “I wanted to round-out my industry and market knowledge by moving to upstream/project side of the market,” he explained. TGOOD Australia was the perfect opportunity.


According to Ball, every customer deserves to have expectations exceeded, a value that he shares with the TGOOD team 9


CEO PROFILE

I have been fortunate enough to have worked with some very talented people who have helped coach and mentor me 10 September 2015


LEADING WITH INTEGRITY

Global presence at a local level Founded in 2004 by a team of German and Chinese engineers, TGOOD Global’s rapid expansion within the mining, energy and exploration sectors has been a focal point of the strategic growth plan from the beginning. After becoming the first company listed on the Shenzhen Stock Exchange in 2009, TGOOD Global expanded operations to become a worldwide presence: In 2014, TGOOD North America was established as a global engineering centre, with Hong Kong as a hub for globalisation. By 2015, the corporation placed regional headquarters in the Middle East, Africa, Australia, Central Asia and South America. “Globalisation has always been in the German-Chinese joint venture vision; however, the first milestone was a successful model in a very competitive Chinese market,” Ball said. “The executive board now feels like that can be expanded.” Taking a customer-centric approach Establishing a presence in these new territories also aligns with the customer-

centric attitude practiced by both the corporation as well as Ball himself. “The industry has often seen different suppliers try to sell from a global headquarters, but few actually regionalise their business. TGOOD Global realised that to move to the global platform, [we would] need to regionalise with local companies and employees, and listen to the customers on a local level.” According to Ball, every customer deserves to have expectations exceeded, a value that he shares with the TGOOD team, and one that he is able to expand at an even larger level in his new role. “I have mostly worked in large multi-national companies with all of their varying internal complexities— during that time, I have always been connected to the customers, and the main message is always the same: Customers are looking for quality suppliers to listen, be responsive and provide cost-effective equipment that meets their needs. I believe TGOOD has the DNA to offer this on a global and regional platform.” Leading by example In addition to his experience with 11


CEO PROFILE

With an unblemished reputation and incomparable market reach, TGOOD Australia was a natural fit for the leader 12 September 2015


LEADING WITH INTEGRITY

strategic management and power distribution, Ball’s approach toward leadership and fundamental core values align well with TGOOD Australia’s corporate culture—and for the latter, one stands out among the rest: integrity. “Without integrity, all the other values are meaningless. This is very much consistent with my own values— if you can continue to be good to your word with employees and customers, partnerships can flourish,” he said. “Generally, I can only inspire people if I am passionate about something,” Ball continued, “and I think people can only be inspired if there is alignment of personal and professional values and beliefs.” As a manager, Ball prides himself on his ability to adapt leadership styles based on an employee’s individual personality and needs—and he is quick to give credit to those who came before him. “I have been fortunate enough to have worked with some very talented people who have helped coach and mentor me, support me through tough times, and work with me and others as a team to achieve some special results.” Likewise, when asked how his prior

Q&A WITH CHRIS BALL What inspires you? I definitely have a goal-oriented approach both personally and professionally, but building something substantial to ensure my family is given a great opportunity in life sits at the core of my daily inspiration. Who is your role model? I have really taken an interest in both Richard Branson and Elon Musk. Both have very different approaches and represent that one size does not fit all when it comes to building successful ventures. What book are you currently reading? Personal: Born to Run Business: Getting Things Done What do you do to unwind? Family time away in the great outdoors is my key to gaining balance in a hectic world. Leaving the world behind and spending quality time with the family helps me keep in touch with what’s important and what’s not

roles helped prepare him for this new venture, he was quick to give credit back to this previous experience. “I have a lot of respect for the companies that I have worked for—they have their own unique strengths that they have offered and contributed to help me prepare for my current role at TGOOD,” he explained. “It is this experience that I continually try to give back to the people with whom I work.” 13


Water, Water

EVERYWHERE How California’s oil and gas sector can provide a partial solution to its water problems W R I T T E N B Y : J O H N S A B E Y, C H I E F TECHNICAL OFFICER, PROSEP

ABOUT TO ENTER its fourth year, the California drought has resulted in stringent controls on water usage, to say the least: Governor Jerry Brown has imposed unprecedented measures to cut water use by 25 percent across the state—and even though farmers in the delta of the Sacramento and San Joaquin rivers have volunteered extra reductions,

efforts to stave off further mandatory cuts have failed thus far. However, as California’s agriculture sector struggles to reduce its consumption of water – estimated to be 80 percent of the state’s total – eyes are turning to California’s other big producer: the oil and gas industry. California is not only the biggest producer of fruits, nuts and vegetables


R E N E WA B L E S

in the U.S., the state is also the third biggest producer of oil in the country, extracting roughly 200 million barrels per year. The rock formations that bear oil in the region also tend to harbor large volumes of brackish saltwater. The ratio of water to oil produced by operators in the region is, on average, ten to one. As Chevron recently explained,

the Kern River oilfield neatly illustrates the situation. Kern River is the secondhighest producing oilfield in California; moreover, for every barrel of oil, the field also produces around nine barrels of water. Almost 25 percent of this water is treated to remove solids as well as free, dispersed and dissolved 15


R E N E WA B L E S hydrocarbons before being used in enhanced oil recovery (EOR) applications. Because the Kern River field tends to produce heavy oil, steam flooding is used to reduce the crude viscosity and boost production. Continuing with the case of the Kern River oilfield, 75 percent of the produced water is not required for further oil extraction, which is at the lower-end of the range for oil producers in California (many of whom often have to dispose of, or find ways to re-use, up to 99 percent of their produced water). This, coupled with recent discussions by state officials regarding the closure of nearly 100 disposal wells, will more than likely push the reuse of this produced water even further. Naturally, however, that remaining water still needs to be treated, and until now there has been little economic incentive for operators and farmers to get together in an effort to work out a deal for the treated water: Historically, re-injection has been cheaper than re-use given the treatment that is required even for agricultural purposes. But that financial equation has not taken into account a record-breaking 16

September 2015

‘Kern River is the second-highest producing oilfield in California; moreover, for every barrel of oil, the field also produces around nine barrels of water’ drought, nor does it allow for the precipitous drop in oil prices, which have had a heavy impact on the state’s producers’ bottom-line: On the one hand, farmers need water to maintain healthy production of essential crops; on the other, oil producers are looking for innovative and cost-effective solutions to boost their margins. For the most part, these solutions look at how best to optimize output from existing wells or minimize production costs. But technological advances mean that there are now solutions available that make it possible to treat produced water on a much more cost-effective basis. Not only does this reduce the OPEX associated with finding new


W AT E R , W AT E R , E V E R Y W H E R E !

Production is booming in the vast Central California oil fields which rely on secondary recovery techniques (steam and water injection) to bring up the heavy crude. freshwater or disposing of produced water safely and compliantly, it could provide oil producers with a new asset to offer to market: water that is fit for agricultural purpose. The numbers add up. Farmers typically buy fresh water at approximately 25 cents a barrel. Even taking into account a lower cost for recycled water – say 18 cents a barrel – it is now possible to perform the

necessary processing for less than this amount for significant quantities of produced water, if not all of it. Even considering initial capital costs, when the difference is factored up by several million barrels a day, the results can be significant both for the operators and the farmers. So what treatment is required in California? Standards for agricultural use are less stringent, for many 17


R E N E WA B L E S components, than for potable water. The Chevron Kern River project, for example, had to operate to the following specifications : • Flow: 33.5 mgd (daily maximum) • Boron: 1.3 mg/L (annual average) • Chloride: 200 mg/L (annual average) • Electrical conductivity: 940 umhos/cm (annual average) • Oil and grease: 35 mg/L (daily maximum) • Sodium: 142 mg/L (annual average) Most remaining solids and hydrocarbons need to be eliminated,

while suspended and dissolved components such as potassium chloride and sodium chloride need to be down to the two- or three-ppm range. Certain state-regulated components will also need to be removed, including, but not limited to iron, chromium nickel and boron. Traditional produced water technologies have a major role to play. Corrugated plate interceptors, induced gas floatation units, nutshell filters, and polishing filters to capture any residual solids create a fairly standard method for treating water

‘ProSep has provided preliminary front-end engineering and design concepts for several California reuse applications, many of which require the oil and solids to be removed – followed by specific contaminant removal treatment – in order to achieve the standards required for agricultural use’

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September 2015


W AT E R , W AT E R , E V E R Y W H E R E !

to Californian state regulations for re-injection. For agricultural use however, additional treatment is required: typically reverse osmosis, ion exchange, or a combination of the two. Ultrafiltration can also remove enough particulate to get the level of total suspended solids to an acceptable limit. In some cases with high levels of dissolved solids, evaporation may also be needed. ProSep has provided preliminary front-end engineering and design concepts for several California reuse applications, many of which require the oil and solids to be removed – followed by specific contaminant removal treatment – in order to achieve the standards required for agricultural use. The design and operation of these systems is fairly simple and inexpensive. In another application, however, the total dissolved solids levels were elevated to a point where the water had to be evaporated and condensed to meet the required standards after removing the oil and solid contaminants. This particular case required additional treatment to remove heavy metals and potentially toxic contaminant; the resultant

solution is naturally more complex and costly to operate and maintain. Due to the large volumes of produced water generated by E&P operations, there exists a readily available source of water to alleviate some of California’s water woes. But as illustrated in the examples above, additional treatment and monitoring will be required: In some cases, this is easily achieved yet in other applications, considerable expertise and resources are required to achieve a usable product. These primary and secondary separation treatment technologies are already widely applied in the oil and gas, and other industries. They can be customized and packaged to provide a complete solution for each operating field. Additional tertiary treatment technologies can be incorporated to meet nearzero discharge limits as needed. It is not often that the oil and gas sector gets the chance to present itself as an environmental steward. But as California’s agriculture sector is starting to consider the possibilities offered by this previously unused water source, the opportunity is there to be seized. 19


TOP 10

TOP10 ENERGY STOCKS TO BUY TODAY

The decline in oil prices has caused somewhat of a panic across the market however now may actually be the perfect time to invest. Written by: Jennifer White


It is no secret that oil prices are having a major affect on the global economy. The commodity that once commanded $110 per barrel in 2014 just settled for October 2015 delivery at $38.85 per barrel, which is 71 cents lower than the month before – and significantly lower than the previous year. The decline in oil prices has caused somewhat of a panic across the market however according to some, things may not be as bad as they seem. “This is precisely what we might have hoped for, as this market collapse does present an enormous opportunity to buy some great oil stocks at bargain prices,” explained Daniel Dicker for TheStreet.com. “Stocks are beginning to reach the equivalent value of their commodity counterparts. That means that opportunities are beginning to emerge in stocks that rely upon their underlying commodity prices.” With that in mind, here are 10 stocks that we recommend looking into during this time of “panic”: Each has seen a high percentage return over the past few months, and each has at least one industry-impacting project either in the works on or the horizon—not to mention what may be the lowest open price the market will likely see for quite some time. 21


TOP 10

10

MARATHON PETROLEUM CORPORATION (MPC) Open price:Â $ 46

Although Marathon Petroleum Corporation has one of the lower percentage returns on this list (11 percent since May 2015), the 127-year-old company is also one of the most stable. As one of the largest independent petroleum product refining, marketing, retail and transportation businesses in the United States, the company owns and operates seven refineries in the Gulf Coast and Midwest regions and maintains in-house means of product distribution, reducing costs and further ensuring quality control.

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September 2015


E N E R G Y S T O C K S T O B U Y T O D AY

09

PIONEER NATURAL RESOURCES COMPANY (PXD) Open price:Â $ 108

Although the open price is one of the highest on this list, Pioneer Natural Resources is a Fortune 500 company that shows a lot of promise for current and future investors. The Texas-based oil and gas exploration and production company has seen a 29 percent return over the past three months and is heavily involved in the continued development of oil-rich shale plays throughout the state. Specifically, Pioneer is the one of the largest producers in the Spraberry/Wolfcamp in the Permian Basin and a top operator at the Eagle Ford Shale. These projects alone give investors a reason to keep Pioneer at the top of the list.

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TOP 10

08

SOUTHWESTERN ENERGY COMPANY (SWN) Open price:Â $ 15

With a low open price and a high amount of potential, Southwestern Energy Company is another stock to consider adding to the portfolio. The company has been in business for more than 80 years and is the fourth largest producer of natural gas in the U.S. today. Primarily focused on natural gas and crude oil exploration, development and production, the majority of the company’s resources are spent on the development of natural gas in the Fayetteville Shale in Arkansas and the Marcellus Shale in Pennsylvania. In addition, investors have seen a 44 percent return over the past three months. 24

September 2015


E N E R G Y S T O C K S T O B U Y T O D AY

07

CHESAPEAKE ENERGY CORPORATION (CHK) Open price: $ 6.33

Recently listed as No. 17 on Fortune’s list of fastest growing companies by revenue over the past 10 years, Chesapeake Energy is the second-largest producer of natural gas, and the 11th largest producer of oil and natural gas liquids in the United States. In a recent press release, CEO Doug Lawler commented, “Despite the [recent downturn in commodity prices], we remain focused on lowering costs and improving operational efficiencies in our portfolio of high-quality assets.” And it seems to be working: Chesapeake’s stock delivered a 57 percent return over the last three months.

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TOP 10

06

ONEOK, INC (OKE) Open price: $ 33

ONEOK, Inc. is the sole general partner and 37.8 percent owner of ONEOK Partners (NYSE: OKS), which owns a premier natural gas liquids system that allows the connection of NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key markets throughout the country. According to the company’s 2015 SEC file, this partnership allows ONEOK Partners to focus on applying its “core capabilities of gathering, processing, fractionating, transporting, storing and marketing natural gas and NGLs through the rebundling of services across the energy value chains, primarily through vertical integration, to provide its customers with premium services at lower costs.” ONEOK stocks had a 28 percent return since May 2015.

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September 2015


E N E R G Y S T O C K S T O B U Y T O D AY

05

CABOT OIL & GAS CORPORATION (COG) Open price: $ 22

Also based out of Texas, United States, Cabot Oil & Gas Corporation focuses on the exploration and production of oil and natural gas. Experiencing 37 percent return since May 2014, the company’s proactive planning as to how it would navigate industry ups and downs is proving to be successful. Notably, the following the points were made outlined by the corporation in its 2015 SEC filing: 1. Disciplined Capital Spending Focused on Organic Projects 2. Low Cost Structure 3. Conservative Financial Position and Financial Flexibility With focus like this – and numbers that don’t lie – Cabot Oil & Gas is another stock to look into. 27


TOP 10

04

HELMERICH & PAYNE (HP) Open price: $ 68 As the largest land driller in the U.S., Helmerich & Payne provides rigs to producers within the oil and gas sector. And although the company’s stocks have witnessed a 30 percent decline over the past six months, CEO John Lindsay was quick to point out the obvious: a “rapidly deteriorating energy market.” While this is certainly no secret— Helmerich & Payne even expects drilling activity and rates for its rigs to continue to decline—as anyone who has been monitoring the market can attest, Helmerich & Payne know how to navigate the turmoil: The firm used the last downturn in oil prices to bolster market share from 9 percent in October 2008 to 16 percent by the end of 2014.


E N E R G Y S T O C K S T O B U Y T O D AY

03

FIRST SOLAR, INC. (FSLR) Open price: $ 46

A globally-recognized leader in PV solar systems, First Solar’s main focus is to provide financially-beneficial and environmentally-sound alternative solutions to electricity generation. The company’s integrated power plants utilize advanced technology to maintain at the forefront of the industry. Total return since May 2015 has been 22 percent and the stock’s growth doesn’t appear to be slowing down anytime soon. In the company’s second quarter financial results, CEO Jim Hughes said: “We achieved significant financial and technological milestones this past quarter with the IPO of 8point3 Energy Partners and a new record module conversion efficiency of 18.6 percent. “In combination with year-to-date bookings of 1.4GW and full year earnings guidance of over three dollars per share, we continue to execute across all elements of our business.”

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TOP 10

02

RANGE RESOURCES CORPORATION (RRC) Open price:Â $ 35

An independent oil and gas exploration company based out of Texas, United States, Range Resources Corporation recently released its second quarter financial report, indicating that while total spend for the company was approximately $700 million less than 2014, annual production growth increased 20 percent.

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September 2015


E N E R G Y S T O C K S T O B U Y T O D AY

Chairman, President and CEO Jeff Ventura commented on the company’s performance: “Operational results in the second quarter continued to be excellent, as we lowered costs, improved capital efficiencies, exceeded production guidance and achieved great drilling results, especially in the dry gas area.” Additionally, the company’s stock yielded a 43 percent return in the last three months, and Range is expanding its portfolio within the ethane market, further hinting that the time to buy may be now.

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TOP 10

01

CHEVRON (CVX) Open price: $ 73

Although the global oil giant’s earnings dropped a hefty 30 percent in the fourth quarter 2014, its refining operation were profitable, thus carrying the weight of losses felt in other parts of the business—and this is a good sign for investors. While focused on the gamut of power and energy services, Chevron is currently spending billions of dollars each year to replace depleted wells across the globe. According to company reps, the aggressive goal of boosting oil and gas production by 21 percent is right on-track for completion by 2017, as initially predicted. If this is indeed true, the supply-and-demand issue being experienced sector-wide – particularly with oil supply – may no longer exist—and investors will more than likely reap the benefits. And even though it is reported that Chevron recently reduced its capital budget and suspended share buybacks, the company has maintained protection of its $1.07-per-share quarterly dividend and has made no indication of changing that fixed rate.

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September 2015


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E N E R G Y S T O C K S T O B U Y T O D AY

Note: All Stock Prices As Of 9/1/2015 Energy Digital and WDM Group have no affiliation with any of the companies listed in this article and the information given in this article is for entertainment purposes only and should not be considered as financial advice.

Sources used for this article include: www.forbes.com www.kiplinger.com www.moneywatch.com www.nasdaq.com www.thestreet.com www.wsj.com

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Turning Potential Challeng Written by: Sam Jermy Produced by: Richard Thomas


ges Into Opportunities 35


O M A N E L E C T R I C I T Y T R A N S M I S S I O N C O M PA N Y

OETC has invested OMR120 million in infrastructure works to evacuate the power from the power plants in Ibri and Sohar

The firm is investing in its network infrastructure so that it can grow at a similar rate to the country’s economy over the coming years

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September 2015

T

he Oman Electricity Transmission Company (OETC) has planned an investment program worth an estimated 750 million Omani Rials (OMR) over the next 15 years, to support its 2030 vision that aims to expand infrastructure to meet increasing customer demand. As part of the new long-term national planning, the company will complete turnkey engineering, procurement and construction projects as part of the multi-million Rial investment, following on from the OMR100 million invested to enhance operations last year. Dr Adil Al-Busaidi, Asset Management and Planning Manager at OETC, said: “As a company we faced an average of 9 percent growth annually over the last decade and that is a lot of effort in terms of planning. Currently


MIDDLE EAST

Key Personnel

we have a load demand of around 5GW and we expect that to be in the range of 16GW in 2030 so investment is essential if we are to provide over three times the existing demand. “Each year we work to increase our capability so we can help deliver more projects, such as the OMR120 million infrastructure works to evacuate the power from the power plants in Ibri and Sohar. Increasing our project delivery capability is essential in order to turn the high demand growth risk into investment opportunities. Basically, we need to engage more contractors, consultants and manufacturers in order to achieve that as well as enhancing our own investment management capabilities. “We used to operate high voltages of 132kV and 220kV but now we’re embarking on the

Eng Ali Said AlHadabi CEO Engineer Ali Al Hadabi has assumed the leadership of Oman Electricity Transmission Company S.A.O.C. since September 2008. During his time, OETC has embarked on a significant capital investment program in the Main Interconnected System, which is the vital lifeline of the Sultanate’s power infrastructure. He is responsible for power transmission business across the north of Oman and the south of Oman.

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O M A N E L E C T R I C I T Y T R A N S M I S S I O N C O M PA N Y construction of 400kV transmission system assets as it allows us to have more output capacity. As part of our vision we will be busy to complete the 400KV backbone for the whole of Oman. We have a vision to have one 400KV linking the North and South and the interior parts. We will have one strong grid and solid infrastructure appearing over the next few years. We want to support overall growth within the country as best we can.” OETC was established on 1 May 2005 and it is responsible for the building and operating of the transmission network in Oman, and is the licensees under the authority of Government of Oman. It is also in charge of despatching and controlling the overall generation and output of electricity in the country. Operations In January 2014 OETC took control of the transmission network in the south of Oman, which had previously been operated by a different system operator. As a result the firm had full control of the country’s electricity transmission and a significant platform to build on. Eng Ali Al-Hadabi, CEO of Oman Electricity Transmission Company, said: “We are also responsible for the international connection to a number of GCC countries and its authorities, this is done through Abu Dhabi in the UAE. Meanwhile we have a number of high-profile corporate customers in Oman connected to

OETC has full control of Oman’s electricity transmission

“Currently we have a load demand of around 5,000 MW and we expect that to be in the range of 16,000 in 2030 so investment is essential if we are to provide over three times the existing demand” – Dr Adil Al-Busaidi, Asset Management and Planning Manager at OETC.

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O M A N E L E C T R I C I T Y T R A N S M I S S I O N C O M PA N Y

OETC connects a number of high profile

the high voltage network; the major Omani airports, industrial customers such as steel and aluminium factories, and the Oman Petroleum Company to name a few.” “Because we are experiencing a lot of growth in OETC and the country as a whole, we need to maintain the same sort of growth in the network to handle the load increase and ensure we all flourish.” OETC has also made sure all IT systems have been upgraded to help drive continuous improvement and support the national controlling and communication link to the national network.

corporate customers

Designing, Tower testing & Manufacturing of Galvanized Lattice type steel structures for Overhead transmission Lines and Telecommunications Towers. EPC construction of Overhead Transmission, Distribution, Substation & underground power cabling works. T +971 4814 9555. F +971 4885 7819. contact@gulfjyoti.com www.gulfjyoti.com

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September 2015


MIDDLE EAST

Asset management Al-Hadabi and Al-Busaidi both stressed the need for new ways to strategically deliver projects, because despite the heavy investment throughout the group, if the assets are not managed correctly then it will not have the desired impact on operations. Al-Hadabi said: “In the last two or three years we have established a strong asset management structure. We do depend on outsourcing a small amount for things like consultants who supervise our work and make sure we carry on looking after the projects that are coming our way. “This new strategy will really help us to see the requirements of all departments and see the lifecycle of our assets. This relates back to our investment program where we are ensuring that there is a sufficient support network in place. “We would also like to emphasise the value we place on our excellent staff and engineers. We take them through rigorous and high-quality training which allows them to look after what we are targeting. We encourage all our engineers to go for extra qualifications and support them; a fulfilled worker is much better equipped to help us achieve our business objectives.” More than 92 percent of the company’s employees are Omani nationals and most are trained in multiple disciplines. “We want this trend to continue because we believe in the young talent in this country, and hope they will want to work for an employer like OETC. We also want to limit

Dr Adil Al-Busaidi, Asset Management and Planning Manager at OETC.

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O M A N E L E C T R I C I T Y T R A N S M I S S I O N C O M PA N Y

Building a transmission network with high voltages of 400KV is a sizeable job

9% Oman Electricity Transmission Company Growth over the last decade 42

September 2015

the amount of outsource activity to certain niche tasks that physically cannot be done in-house; everything else should be done in-house going forward. With this in mind, staff numbers are expected to increase in the coming years.� added Al-Hadabi. OETC has made a successful habit out of building fruitful partner relationships with local service providers and contractors too, and this has further helped maintenance and delivery. The company management team sees the main challenge going forward as the ongoing efforts to improve the national grid infrastructure. Building a transmission network with high voltages of 400KV is a sizeable job, in terms of implementing new overhead


MIDDLE EAST

lines, underground cables and evacuating the power from the new generation stations. While this is being carried out all network corridors need to remain available at all times as it is important OETC maintains a reliable service to the customer with no deviation in quality or availability. Al-Hadabi concluded: “We need to execute all these new lines and substations with minimum to the end users, our valued customers, and this is something we are taking very seriously with the governmental authorities and that is the main challenge I can see, we need to tackle that to get the right corridors and build a service fit for the future. “We are always benchmarking ourselves against the best transmission companies across the world and we try to be constantly challenging ourselves to be the best utilities firm we can be. When we do reports based on our three pillars of reliability, availability and quality we always find the results to be acceptable. But we must not be complacent and stand still. “We have high standards and have put a big level of expectation of ourselves, and we challenge our employees to make sure we deliver on that expectation.” With such commitment to its staff, coupled with significant investment plans, the Oman Electricity Transmission Company looks set to bring about further prosperity for itself and facilitate growth for the country’s economy.

Company Information INDUSTRY

Energy HEADQUARTERS

Sultanate of Oman FOUNDED

2005 EMPLOYEES

350 REVENUE

92 milliom OMR (2014) PRODUCTS/ SERVICES

Owner and operator of Oman’s main electricity transmission network

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Civmec Global strategy, universal success

CEO Pat Tallon discusses Civmec’s history of growth, current projects, and plans for the future Written by: Sasha Orman Produced by: Bryan Giles


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stablished in 2009, Civmec has seen a rapid rise to the top of its game. With a keen business strategy and a multi-disciplinary approach, it has become a leading construction and engineering services provider to Australia’s booming resources and infrastructure industries. With several major projects under its belt, Civmec is now poised for even further growth at home and on the global stage.

Civil works site at Marandoo

Strategy from the start Civmec has enjoyed growth quarter after quarter, and not by happenstance. Strategy has been built into the company from Day One, starting with location. “When we established this business in 2009, a big component for us was to secure a location at the Australian Marine Complex so we had direct access to the wharf to offer greater transport options for our clients,” says Civmec CEO


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Pat Tallon. Since constructing a 29,300 square metre manufacturing workshop as a home base at the wharf, Civmec has since expanded to more than 120,000m of prime waterfront land, through the further establishment of a Surface Treatment Facility, Specialist Subsea Facility and Operational Readiness Facility. But location is just one of three key factors that Civmec attributes to its swift success. Another key is its focus on collaborative partnerships,

whether with clients and employees or valued subcontractors and suppliers like steelmakers BlueScope Steel and Onesteel. “We work with them to develop innovative solutions that will increase productivity and ultimately reduce cost,” says Tallon. Working closely with clients and suppliers, Civmec creates an invaluable environment of transparency and trust. “We picked the right clients and the right partners,” says Tallon.

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PROUD SUPPLY PARTNERS OF CIVMEC BlueScope Distribution is proud to be associated with Civmec, providing quality steel products and supply solutions. As the market leading sales and distribution arm of BlueScope Limited, partnering with local businesses to deliver a reliable, Australian made product is our priority. Our depth of stock available for next day-delivery is unrivalled in WA, and allows us to support our customers facing increasingly constrained delivery schedules. The scale of our operations and warehouse delivers a competitive price and industry leading range. Having an experienced team of steel professionals working with our customers allows us to deliver supply solutions to combat increasingly competitive landscape of the Australian steel market. BlueScope Distribution’s core products and markets: • • • •

Mild Steel Plate High Tensile Plate Laser Plate Quench & Tempered Plate

MANUFACTURING

PROCESSING

• • • •

Tubular RHS Commercial & ERW Pipe Sheet & Coil Merchant Bar

WAREHOUSING

DISTRIBUTION

BlueScope Distribution

9 Bradford Street, Kewdale WA 08 6250 1000 bluescopedistribution.com.au

BlueScope Distribution, XLERPLATE® and XLERPLATE LITE® are registered trademarks of BlueScope Limited.


SUPPLIER PROFILE

Since 1915 the steel industry has been an essential part of Australia and its economy. BlueScope’s heritage traces back to the very beginning. Our history has always been in steelmaking - but the future lies in selling Australian innovation, technology and expertise to the booming Asian and global growth markets. BlueScope’s business has been built on the strength of our global partnerships, global networks and global brands. Our track record of successful global partnerships enables us to prosper in widely diverse markets. In India, we have established a joint venture with the highly respected Tata conglomerate, a joint venture in Saudi Arabia is opening new opportunities in that expanding market, in North America, our 50:50 North Star BlueScope Steel joint venture with Cargill continues to perform strongly, and our joint venture with Nippon Steel - NS BlueScope Coated Products - will open exciting new markets and opportunities in Asia. Equally important are our successful partnerships with our customers. Many of our customers are Fortune 500 companies, and we can help them realise significant savings in the total cost of their buildings by reducing construction schedules. Our global networks are another great BlueScope strength, with more than 100 facilities in 17 countries, employing over 16,000 people serving thousands of customers.


CIVMEC

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“We grew fast but it is sustainable and with every move into new areas—whether it be location or capability—we ensured the business was ready for it.” The right projects Civmec has been involved in an array of ambitious key projects that highlight its interdisciplinary strengths, from metro-based infrastructure in Elizabeth Quay to refractory installation with INPEX’s Ichthys Project in Darwin. Civmec’s capabilities are tested even further with progressive projects under current construction like Shell’s Prelude Floating Liquefied Gas Facility (FLNG). Civmec was awarded a master service order contract by frequent collaborator Technip in August 2014. “This is one of the most exciting projects globally as it is the first FLNG project in the world,” says Tallon. “Our involvement includes the supply, fabrication and testing of subsea components for the development. The main challenge is to deliver these products to the high quality and high specification expected from our client, Technip, and the owner, Shell.”

CEO Pat Tallon CCIWA Presentation

SMP Works on Yandi Sustaining project

“Every Civmec location is strategic to ensure we are well-positioned to service our clients and the sectors” – Pat Tallon, CEO w w w. c i v m e c . c o m . a u

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“An Australian First” at Esperance Port Esperance Port had a specific remit for suspended (hanging) scaffold on a planned shutdown for the blasting and painting of a conveyor structure over the water. The required scaffold was to be 25m long x 8m wide x 12m high with 5 working platforms both sides and a full dance floor deck top and bottom. We also had to achieve a maximum dead load weight of 400kgs per linear metre, which was impossible with conventional steel scaffolding. Due to an approaching deadline there was little time to achieve this. SMS came to the rescue with 'SCAFFMAN 9 - ALLOY 220 SCAFFOLD SYSTEM' The result was a set of 3 craneable and light weight scaffolds rated at 450kgs SWL (Medium Duty), which comfortably complied with the dead load weight restrictions whilst allowing major works to be performed based on the working duty required. T he craneable engineered design reduced the build by 50% and the dismantling time by 70% resulting in massive time reductions and down time for the conveyor. SMS director Mark Welsh said ‘’We were set a technical challenge that I knew our Scaffman 9 Alloy 220 system scaffold was perfectly suited to. This is a first in Australia and I am very happy with the result, as is the client. I look forward to taking this concept to a wider field of customers as the benefits are phenomenal!’’

Scaffolding Management Services

Ph: 08 6424 8012 63-67 Division Street Welshpool WA 6106 Email: info@scaffman.com.au

“SCAFFMAN 9” ADVANCED GUARD-RAIL

www.scaffman.com.au


CIVMEC

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Even more recently, Brookfield Multiplex Engineering and Infrastructure Pty Ltd awarded Civmec with the new Perth Stadium Steelwork Package contract, a contract that includes the fabrication and installation of roughly 14,500 tonnes of steelwork for the highly anticipated new Perth Stadium. “This project is evidence of how globally competitive Australia can be when it comes to fabrication, while providing client surety of delivery,” says Tallon. Pursuing growth abroad As a key part of its efforts to stay competitive and offer a high level of service, Civmec has been expanding to meet the needs of clients overseas. “Civmec growth strategy has always involved expanding overseas when the business was

‘Scaffolding Management was formed in 2001 and has SUPPLIER PROFILE Services’ SCAFFOLDING MANAGEMENT SERVICES established itself as a professional organisation supplying scaffolding and access services to the Industrial, Mining, and Resource sectors, both onshore and offshore Australia wide. SMS is a privately owned West Australian company, with quality assurance acreditation to AS/ NZS ISO 9001:2001. We operate under our own Health, Safety and Environment system which is compliant with AS/NZS 4801.

Since 2001, we have provided our customers with ‘Project Access Management Solutions’, with the ability to quickly and effectively introduce specialist equipment and personnel to any site any-where at short notice. SMS have demonstrated our capabilities on numerous projects over the past 14 years with some significant achievements under our corporate belt. Website: www.scaffman.com.au w w w. c i v m e c . c o m . a u

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SUPPORTING AUSTRALIA’S BEST WITH THE RIGHT GEAR FOR THE BIG JOBS

Onsite Rental Group congratulates Civmec on being awarded “Company of the Year” by Subsea Energy Australia. And just quietly, we’re stoked that Civmec has chosen us to be their sole equipment rental solutions provider and we support the shared growth of our businesses. 

OUR KNOWLEDGE YOUR CHOICE

134040 onsite.com.au


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ready,” says Tallon. “We have been successful in making Civmec competitive here so naturally we want to ensure the expansion overseas provides the same result.” To help in ensuring a smooth and successful expansion plan, Civmec has looked to smart strategic partnerships with synergistic businesses like Technip. “Through various projects including Prelude and the Wheatstone spool package, we have developed a strong working relationship with Technip,” says Tallon, noting that acquisition of Technip’s Indonesian subsidiary PT Global Industries is currently in the due diligence phase. “If complete, this acquisition will strengthen our working relationship and offer Civmec further opportunities to work with Technip on projects

SUPPLIER PROFILE

Henderson workshop

ONSITE RENTAL GROUP

Our Knowledge, Your Choice is the tagline that sums up Onsite’s philosophy. Onsite employs product specialists for every product in every region of Australia to offer expert advice on equipment application (Our Knowledge). Onsite also remains 100% independent of equipment manufacturers so our product specialists are free to offer unbiased advice on the right product for your project or application (Your Choice). Our Knowledge Your Choice underpins every aspect of Onsite’s business. Website: www.onsite.com.au

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“You Can Count on Our Strengths in Service Excellence and Uncompromising Quality”. EDI International Freight Management Pty Ltd is a proudly Australian owned international freight forwarder and customs clearing house with offices and agents throughout all Australian ports. We work alongside competent partners throughout all major trade lanes worldwide. • • • • •

Air, Sea and Road freight Specialists in Project and Out of Gauge Cargo Trade consulting and Tariff advice Cargo packaging, handling and transport options Australian Customs and Quarantine regulations Import and Export transactions

Telephone : +61 8 6323 1760 | Email : perth@edicustoms.com.au

www.edicustoms.com.au

STRUCTURAL • TUBULAR • BAR • PLATE • COLUMNS • CHANNELS • ANGLES • REINFORCING • PROCESSING

Proudly supplying Civmec projects

Yes,

“Can you provide a total steel solution to simplify my steel projects from start to finish?”

OneSteel Metalcentre is Australia’s only truly integrated steel supplier. With the support and stability of Arrium Mining and Materials and a nationwide branch network, we are uniquely positioned in every city and region to provide products and services to a wide range of market segments including mining, engineering, construction and manufacturing. Combine this with our project management, technical expertise and the ability to seamlessly access processing and finishing resources as required, you’re partnering with a business that aims to understand, make it easier and deliver.

Nammuldi Below Water Table (Rio Tinto, WA) Yandi Sustaining Project (Rio Tinto, WA) Mungari Gold Project (La Mancha Resources, WA) Finucane Island Blending Yards (BHP Billiton, WA) Marandoo Expansion (Rio Tinto, WA) Hope Downs 4 Expansion (Rio Tinto, WA) Finucane Island Expansion (BHP Billiton, WA) Gorgon Downstream LNG (Chevron, WA)

we can. Perth

08 9418 9877 OneSteel Metalcentre Perth – 1 Howson Way, Bibra Lake

www.onesteelmetalcentre.com


CIVMEC

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worldwide—as well as giving us the opportunity to expand our offering to other clients globally.�

new offices in Sydney and Gladstone. According to Tallon, the Sydney office will allow Civmec to further pursue infrastructure projects Increasing growth domestically along the Eastern Seaboard, While Civmec has turned its sights sustaining capital and maintenance overseas, cementing opportunities in opportunities in the mining and Australia is as high a priority as ever. oil and gas sectors, and defence To maximise its domestic growth work through Civmec DLG, an strategy, Civmec recently opened incorporation in conjunction with

Civmec Henderson, WA w w w. c i v m e c . c o m . a u

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CIVMEC

Aerial view of Civmec facilities in Henderson

When Quality & Service Matter

AIRCOR Mechanical Services are a wholly owned Western Australian company specialising in all aspects of the air conditioning and mechanical services industry with a reputation for providing quality and excellence. • Specialised HVAC mining services • Industrial, commercial & retail air conditioning & mechanical services • After sales service & breakdown • Planned preventative and tailored SERVICE & maintenance programs MAINTENANCE • Plant refurbishment works • Capital equipment upgrades • New project construction works

24/7

U2 , 16 Jacquard Way, Port Kennedy WA 6172 Office: (08) 9591 6444 / Fax: (08) 9524 6922 Email: sales@aircor.com.au

www.aircor.com.au

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local Indigenous company David Liddiard Group. While initially taking a short-term lease at Gladstone, this will allow Civmec to deliver maintenance and refractory projects within the region to leverage off already delivered and ongoing projects —in the area to ensure the Gladstone site becomes a permanent strategic location . “Every Civmec location is strategic to ensure we are wellpositioned to service our clients and the sectors,” says Tallon. “The offices in Sydney and Gladstone feed into our growth


CONSTRUCTION

Accropodes for Wheatstone project

strategy as we look to expand our geographic footprint nationally.” The multi-disciplined Civmec difference The traits that set Civmec apart from the competition are the same traits that are considered at Civmec to be true points of pride for the company. “Our main differentiator is our multi-disciplined service offering, where we are able to apply our ever-expanding capabilities across sectors,” says Tallon. “Additionally, we pride ourselves on our ability to treat all parties—whether client, subcontractor, supplier or employee—as stakeholders.” This stakeholder state of mind extends to Civmec operating on an “open door” policy of transparency and honesty, ensuring that

“We have identified many infrastructure opportunities all across Australia and we are targeting to win” – Pat Tallon, CEO

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Welding super duplex LNG piping


CIVMEC clients and employees have access to senior management. Civmec’s commitment to continually reinvest in its capabilities is a principle that applies to its people as much as its technology. “At Civmec, we really foster personal and professional growth,” says Tallon. “My philosophy when it comes to people management is to challenge people to be innovative and give them the direction and freedom to realise their true potential. Of course there is also the smart logistics of its geographical positioning—all means to better serve clients. “Our strategic location at the Australian Marine Complex provides direct access to the wharf,” notes Tallon. “Combined with our various other strategic locations, this enables us to mobilise to site faster which gives Civmec a competitive

CONSTRUCTION

edge.” Building and moving forward Civmec already has a strong history of growth, but that growth is far from over. Moving into the future, Civmec has designs for multiple development paths. “A large focus for Civmec moving forward is to increase our market share in the Infrastructure and Subsea sectors,” says Tallon, citing a desire to maintain the momentum it has established through its recent and ongoing projects. “We have identified many infrastructure opportunities all across Australia and we are targeting to win.” Further growth in the Subsea sector will be facilitated through Civmec’s recently completed Specialist Subsea Facility in Henderson, which will help the company meet a rising demand for

“The future looks bright as we grow our geographic footprint and continue delivering vertical packages thanks to our multi-disciplinary, ever-expanding capabilities” – Pat Tallon, CEO w w w. c i v m e c . c o m . a u

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Gorgon Wharf Construction Caissons

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Company Information INDUSTRY

Construction and engineering modularization HEADQUARTERS

16 Nautical Drive Henderson WA, Australia 6166

ability to work with exotic materials and subsea manufacture. “With involvement on Gorgon, Wheatstone and Ichthys with clients such as Technip, FMC Technologies and GE, we hope to grow this business and our reputation for delivering high quality subsea structures to the oil and gas industry,” says Tallon. In any discipline, Civmec understands that the most significant key to growth is the relationships that it cultivates. “Civmec continue building strong working relationships with clients to ensure ongoing works,” says Tallon. “The future looks bright as we grow our geographic footprint and continue delivering vertical packages thanks to our multi-disciplinary, ever-expanding capabilities.”

FOUNDED

2009 EMPLOYEES

1500 approx REVENUE

$430 Million PRODUCTS/ SERVICES

Construction

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CWP Renewables Success in a changing environment

At the forefront of renewable energy development, CWP Renewables have made their mark Written by: Eric Harding Produced by: Vince Kielty


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Bombala blade display-students of Bombala primary and secondary schools joined wind farm staff in Bombala to get up close to a 48 metre long blade on its way from the Port of Eden to Boco Rock Wind Farm

A

fter building landmark projects in Europe, Continental Wind Partners came to Australia in 2008 where it partnered with Wind Prospect and created CWP Renewables. With over two decades of renewable energy development experience from 3,500 MW of installed capacity across 10 countries, CWP Renewables brings world-class renewable energy development expertise to Australia. The company has developed a substantial wind energy portfolio throughout NSW, complimented by a fresh expansion into medium to large scale solar in NSW and Queensland. CWP Renewables 66

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development strengths lie in excellent stakeholder relationships and well sited projects. Migration From Europe Before entering the Australian industry, Continental Wind Partners was established in Europe in 2006, specializing in wind and solar development in the new EU countries such as Poland, Romania and Bulgaria. In 2012 came the completion of the Fantanele Wind Farm, the company’s flagship project valued at €1.3 billion, the largest ever private investment in Romania and Europe’s largest wind farm development. “We initially focused on Eastern


E N E R G Y D I G I TA L

Turbine components for Boco Rock Wind Farm’s 67 turbines travelled 179 km from the Port of Eden to the project site

European countries, where we saw a good opportunity to bring renewable energy into the mix,” said Alex Hewitt, CWP Renewables’ Managing Director and co-founder of Continental Wind Partners. “These countries had recently become aligned with European renewable energy legislation. The time was right and we responded - we founded the company, built a team and established a network of offices across the region. “We raised capital from a mixture of funds and individual investors, and embarked on the development of a wind portfolio in that region. Within 20 months we had started construction of our first wind farm”

“We have a closeknit dynamic team at CWP Renewables, and our biggest strength lies in our strong communication and team work” – Alex Hewitt, Managing Director

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C W P R E N E WA B L E S Boco Rock Wind Farm: “Delivering Energy. Powering Communities.” Closer to home, Boco Rock Wind Farm in southern NSW is the company’s first completed Australian project and a testament to the company’s development and asset management expertise. The 113MW project was developed by the company’s Newcastle based office from 2008. The same team then saw the project through financing and construction before

delivering the fully operational wind farm in January 2015. CWP Renewables, working with GE and ANZ, successfully financed the project for $360 million, bringing together a lending consortium of five banks, and the Electricity Generating Public Company Limited (EGCO) through the sale of equity. Boco Rock enabled EGCO to expand its renewable portfolio and enter the Australian market. In 2014 the project won Wind Finance Deal of the Year for the Asia-Pacific

Radio Licencing & Engineering Consultants ADVICE | TRANSACTIONS | DISPUTES Domestic & Cross Border

THOMSON GEER IS PROUD TO HAVE WORKED WITH CWP RENEWABLES ON THE BOCO ROCK WIND FARM DEVELOPMENT.

Lawrence Derrick & Associates CONSULTING SERVICES FOR WIND FARMS

• Telecommunications and broadcasting impact studies • TV/Radio Field Surveys and interference investigations • Design of project radio links

Thomson Geer is a large Australian law firm providing legal advice across all legal areas to corporate Australia including Corporate/M&A, Construction, Dispute Resolution, Energy and Resources, Property, Superannuation, Telecommunications and Employment.

For further information, or to find out more about our recent wind farm development work, please contact: David Beer I Partner +61 8 8236 1125 0403 069 827 djbeer@tglaw.com.au

Chris Kelly I Senior Associate

4 Gilmour Road, Camberwell, Vic 3124 Phone: 03 9889 3443 | Fax: 03 9889 1587

Email: lderrick@bigpond.com

+61 8 8236 1169 0402 883 848 ckelly@tglaw.com.au

www.tglaw.com.au Sydney | Melbourne | Brisbane | Adelaide


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region by Project Finance Magazine in recognition of the complexity of the financing in what was a challenging time. CWP Renewables retained the role of asset management of the project, and oversaw the GE/Downer construction consortium through construction and then through operations. The company’s dedication, tenacity and innovative problem solving saw the project successfully constructed ahead of schedule, with positive outcomes for all stakeholders. The hard work that went into maintaining a social license to operate was recognised by the Clean Energy Council when the peak industry body awarded CWP Renewables the 2014 Community Engagement Award for their work at Boco Rock Wind Farm. “It’s a project we’re very proud of and more importantly so are the local community” said Hewitt. “We’ve got a dynamic team, who confidently met the challenges of developing, financing, constructing and operating Boco Rock Wind Farm. And we’re ready to do it all again.” “We’ve got another four projects in the pipeline, and with renewed bipartisan support for the Renewable Energy Target, we’re getting on with the job of making them a reality. We’re eager to start financing the next project within 6 months.” Sapphire Wind Farm At the top of the company’s list is Sapphire Wind Farm, a 320 MW project in the Northern

Turbine installation at Taralga Wind Farm

“We’ve had a very successful run because our development team work hard to genuinely engage and consult with the community” – Alex Hewitt, CWP Renewables managing director

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Boco Rock Wind Farm


C W P R E N E WA B L E S

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Tablelands of NSW. “Sapphire Wind Farm is a fantastic project with a lot of potential. We are also planning to incorporate solar and potentially pumped hydro within the project. It’s fully approved and our team is now talking to investors,” said Hewitt. The company’s other projects; Crudine Ridge Wind Farm, Bango Wind Farm and Uungula Wind Farm, are also waiting in the wings. “We develop great projects, and we’re looking forward to steadily rolling them out over the coming years,” said Hewitt.

Alex Hewitt and Ed Mounsey celebrate as CWP Renewables wins the Clean Energy Council’s Community Engagement

The CWP Renewables team Hewitt believes success comes from having the right people that can work cohesively as a unit and CWP Renewables has that “A team.” “We have a close-knit dynamic team at CWP Renewables, and our biggest strength lies in our strong communication and team work,” said Hewitt. “We work on a common platform and collaborate to solve problems, develop innovative solutions and work to our strengths. Our managers mentor and nurture new employees, and drive ownership and confidence. We’re a responsive and adaptive team as well. While the last 18 months saw a freeze in the large scale wind energy market, we took the opportunity to effectively expand into asset management operations and large scale solar development,” said Hewitt.

Award in 2014

More than 1000 people turned out to meet staff and tour the wind farm at Boco Rock’s Community Open Day held in November 2014

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CWP asset manages Taralga Wind Farm

Collaborating for success CWP has also excelled in creating a good relationship with its supply chain, which Hewitt believes is a basic principal of a good business. “We like to engage our key suppliers early in the process,” said Hewitt. “They have a lot to contribute to project design and efficiency, particularly the turbine manufacturers and construction contractors. It makes sense to engage them early to use their experience and knowledge, and that goes for every market.” CWP Renewables isn’t just 72

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another face in the crowd of the renewable energy industry. The company separates itself from its competitors by working very closely with the communities it does business in, placing an emphasis on stakeholder engagement and building a strong social license to operate. “We’ve had a very successful run because our development team work hard to genuinely engage and consult with the community,” said Hewitt. “We strive to deliver projects that are well-liked by the local community and a wide range of


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project stakeholders, and we’ve managed to build a great track record with that”. Looking to the future One of the aspects that excites Hewitt most is that the renewable energy industry is still relatively new and fragmented. Although CWP Renewables is classified as a mid-sized developer, it has seen massive growth over the years, and continues to adjust and seek out new opportunities. CWP has expanded into Asia during the last 18 months and is looking to create a large portfolio of mixed renewable energy generation, combining wind and large-scale solar power as well as small to mid-size diesel replacement initiatives. The company has opened an office in the Indonesian capital Jakarta, while also entering a joint venture to build a significant wind farm portfolio across Indonesia. CWP is also establishing relationships and screening potential projects in the Philippines. “The last 18 months have been a difficult time for our business and the entire sector in Australia,” Hewitt explained. “But while Australia has slowed down, we’ve expanded into Asia and have started building tremendous opportunities over there. The demand for electricity and in particular renewable energy in the SE Asian countries is huge.” “We have an exciting future ahead of us both in Australia and abroad.”

Company Information INDUSTRY

Energy HEADQUARTERS

Floor 6, 45 Hunter Street Newcastle, NSW, Australia, 2300 FOUNDED

2008 PRODUCTS/ SERVICES

Renewable Energy

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Transfield Worley Power Services The leader in power generation

With experience covering over 10,000 megawatts across 43 sites, TWPS is the largest independent operations and asset services provider to the power generation market in Australia Written by: Stephanie C. Ocano Produced by: Bryan Giles


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TRANSFIELD WORLEY POWER SERVICES

Collie Power Station

S

ince its establishment in 2004 as a specialist provider of operations and asset services to the power generation sector in Australia, Transfield Worley Power Services (TWPS) has led the industry with innovation, expertise and skill. Working for large-scale utility owners, project developers, institutional investors, private equity firms, mining and oil and gas owners that require power generation for remote facilities, TWPS continues to support the needs of clients such as AGL, Synergy, Genesis Energy, and BHP Billiton to deliver energy safely, 76

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efficiently, and cost effectively. In a recent interview, David Taylor, Executive Manager of Strategy and Development at TWPS, discussed the company’s expansion into New Zealand and Southeast Asia, the art of customer attraction and retention, and how one company continues to lead the provision of operations and asset services to the power generation sector. Q. How has TWPS managed to remain a leading force and what separates it from the competition?


ENERGY

Kemerton Power Station

The two key things that make TWPS so different from everyone else are definitely safety and innovation. TWPS has a very strong track record, particularly in the improvement of safety outcomes over the last three years, and is now leading the power industry sector. The second key factor is the innovation that is shown by everyone throughout the organization, and the ability to develop new solutions and approaches that either enhance safety, increase productivity or deliver cost savings to our clients. Q. What is the relationship between TWPS and its parent companies Transfield Services and WorleyParsons? TWPS is a fully-incorporated company with both of those companies each owning 50 per cent of

“When we need some support, it is great to have [Transfield Services and WorleyParsons] standing behind us” – David Taylor, Executive Manager of Strategy and Development

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Enquiries 08 9370 5577 INDUSTRIES COVERED: MINING AND QUARRYING AGRICULTURE AND FOOD WASTE RECYCLING RESOURCE RECOVERY LOGISTICS/AIRPORT PRINTING PR POWER STATIONS

www.tmh.net.au

TMH is based in Perth and Bunbury, employs over 26 personnel and has been established in Western Australia for over 25 years. TMH is considered a specialist in the conveyor industry, providing market leading conveyor products and a 24/7 service for installation and ongoing maintenance. Our conveyor products offered include: • All types of conveyor belting, smooth or chevron, rubber or PVC • Mechanical belt fasteners • Bucket elevators and their components • Belt cleaners, belt positioners, belt trackers and impact beds • Conveyor pulleys, idlers, rollers and frames • Sanki conveyors • Powered roller and gravity conveyors TMH employs a team of highly skilled conveyor technicians and provides a 24/7 service covering: • Hot or cold vulcanising of conveyor belts • Rubber lining and pulley lagging • Installation of all conveyor products provided • Breakdown service for all conveyor and belt repairs • Conveyor condition auditing and reporting • Hiring of Sanki conveyors

T.M.H. Total Materials Handling Pty Ltd 228 Collier Road, Bayswater 6053, Western Australia

Tel: 08 9370 5577 Fax: 08 9272 6488 Email: sales@tmh.net.au


TRANSFIELD WORLEY POWER SERVICES the business. We have a board of directors comprising representatives from both WorleyParsons and Transfield Services, and an executive management team responsible for the management of the business We -regularly engage with our shareholders—whether it be from a strategic perspective, a business development and marketing perspective, or from an operational execution perspective. Our ability to draw on the depth of expertise and resources of both of the shareholders as required enables us to mobilize to sites quickly and

access world class expertise in power generation. WorleyParsons has worked on over 190,000 megawatts of power generation around the world, so we have access to that global expertise. With Transfield Services, we leverage their systems for delivery and resources in three countries around the world. When we do need support, it is great to have those two large companies standing behind us, and this also provides comfort for our clients

SUPPLIER PROFILE

TMH

TMH is especially proud of its association as a trusted supplier to TWPS Collie Power Station. TMH has been providing TWPS Collie Power Station with rubber conveyor belting and belt conveyor products such as cleaners and positioners and providing round the clock service for breakdowns, repairs and installation of the conveyor products provided. TMH has an unblemished safety record at TWPS Collie Power Station and prides itself on its responsiveness, understanding and solution of TWPS Collie Power Station conveying requirements. TMH is an authorised agent for Sanwest, Flexco, 4B and Forbo Movement Systems in Western Australia.

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Loy Yang A Power Station

When Quality & Service Matter

AIRCOR Mechanical Services are a wholly owned Western Australian company specialising in all aspects of the air conditioning and mechanical services industry with a reputation for providing quality and excellence. • Specialised HVAC mining services • Industrial, commercial & retail air conditioning & mechanical services • After sales service & breakdown • Planned preventative and tailored SERVICE & maintenance programs MAINTENANCE • Plant refurbishment works • Capital equipment upgrades • New project construction works

24/7

U2 , 16 Jacquard Way, Port Kennedy WA 6172 Office: (08) 9591 6444 / Fax: (08) 9524 6922 Email: sales@aircor.com.au

www.aircor.com.au

Q. How does TWPS ensure customer satisfaction and retention? The major focus we have in terms of retaining our customers is ensuring that we successfully meet the safety, performance and commercial outcomes that our customers have engaged us to deliver. Our business is structured around four key values: Commitment, Performance, Innovation and Collaboration. Based on these values, we ensure that we perform to the requirements of our contracts. We make


TRANSFIELD WORLEY POWER SERVICES sure that the safety of everyone is at the forefront of our minds and everything we do. Our other key focus to ensure customer satisfaction and retention is on maintaining strong relationships with our clients, right from the top of the organization down to the site—then comes the innovation. The combination of all those four values really goes a long way to us retaining our contracts and our customers. Q. What led to the venture into Southeast Asia? Southeast Asia is experiencing strong economic growth and demand for power, and therefore we see that there is a lot of potential to deploy our knowledge, systems, processes and expertise to assist clients in the management of new power generation assets, as well as enhancing the performance of existing assets which may not be achieving the levels of performance envisaged during design and commissioning. Southeast Asia is very much our growth engine. Q. How do you plan to enter this

ENERGY

new market? There are two components. The first will be assisting customers to improve the efficiency and output of existing power stations—really applying our expertise in how to improve the availability of power generation assets, how to improve the efficiency and output and fix problems or issues that they currently have. That will mobilize us to develop our presence and our brand name in Southeast Asia. The next phase will be to deliver full operation management services to owners, and particularly financial and institutional investors, in power generation assets in the market. Q. You recently expanded into New Zealand last year—what is the 5-year agreement between TWPS and Genesis Energy? Genesis Energy engaged TWPS to carry out routine maintenance and outages across their portfolio of thermal and hydro assets throughout New Zealand. Q. How do both corporations benefit from this relationship? For us, it was very much part of our w w w. t w p s . c o m . a u

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Kwinana Power Station

“We have a very loyal group of people that are passionate about power generation” – David Taylor, Executive Manager of Strategy and Development 82

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growth strategy to establish ourselves outside of Australia. From our perspective, gaining such a major contract in New Zealand gives us a strong foothold and a strong presence that will enable us to grow over time. For Genesis, the real advantage was achieving cost savings for them from a much more streamlined contract than they had before. They had around 80 suppliers covering their maintenance before and now they’ve got one—


SECTOR

us. The contract is also very flexible and allows for Genesis to change the generation profile and we respond to that in terms of our labour and maintenance profiling. We can bring a lot of expertise to the table in how to drive productivity efficiency and that was one of the major gains that Genesis Energy was looking for.

Q. Safety is a top priority in the power generation field—what initiatives do you have in place to offset risks? We have a robust safety management system across our business. We place a large focus on hazard identification and reporting, which aims to eliminate any safety risks before they occur, w w w. t w p s . c o m . a u

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Loy Yang A Power Station

and controlling the risk as much as possible. There are daily toolbox meetings that discuss any safety issues and every job has a JSA (Job Safety Analysis) prepared that identifies potential risks associated with a particular task being carried out. Q. How does the leadership team recruit and maintain a solid workforce at TWPS? 84

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We have a very loyal group of people that are passionate about power generation. Being one of the largest employers in the power generation sector in Australia also creates its own benefits in terms of attracting and retaining employees. We also maintain databases of casual employees that we can call upon as required to meet peaks in demand such as during outage


ENERGY

season. They understand our culture and how we do things so that when they come onto a site, they know how TWPS operates, which reduces risks and improves delivery outcomes. We also provide opportunities for people to progress throughout the company, which provides career paths for people resulting in higher retention rates.. On the

innovation perspective, we run an internal program called “The Better Ways Program” where individuals are rewarded for coming up with innovative solutions for clients. It’s a monetary award as well as a recognition award. Q. TWPS engages in a broad range of sectors—from coal to wind power—can you give me a w w w. t w p s . c o m . a u

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Townsville Power Station

breakdown of your work within these? Coal fired power stations represent around 40 per cent of our business at this point in time, with gas around the same (40 per cent) and 86

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renewables is the remaining 20 per cent. Globally, there’s a much larger push towards renewables and our business is certainly seeing more requests from customers to assist


ENERGY

them with their renewable assets. We expect that over the long term that mix might change to an even share between the three, but it really comes down to a large number of market, regulatory, environmental and social factors. If there is a major shift away from coal fired power stations, which we don’t see in the short to medium term, then we will respond to that. Q. What can consumers, competitors and industry insiders expect to see from TWPS in the next year or so? We will definitely be establishing a local presence in Southeast Asia to engage with clients and start to build our business in that region. I expect that we will be putting people up there to solve some of the operational problems that the plants are having in the next year or so. From a New Zealand perspective, we will continue to work closely with our key client, but we will also be looking to see how we can leverage some of the lessons that we’ve learned in the in the last 12 months and helping other customers outside Genesis Energy to improve their productivity. In terms of services to our customers, our focus will continue on delivering safe and efficient operations and asset services, but we will also have a greater focus on how we can leverage our expertise asset management to optimize the performance of our customer’s power generation assets.

Company Information INDUSTRY

Energy HEADQUARTERS

Level 13, 111 Pacific Highway, North Sydney, NSW, Australia, 2060 FOUNDED

2004 EMPLOYEES

1K REVENUE

$250 M PRODUCTS/ SERVICES

Power generation

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Atlantic Energias Renovรกveis:

SUSTAINABL STIMULUS

Through development, implementation and ope of renewable energy projects, the company is o the youngest players of the sector Written by: Flรกvia Brancato | Produced by: Danilo Stefanelli


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eration one of

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AT L A N T I C E N E R G I A S R E N O VĂ V E I S

R

elatively new in the market, Atlantic Energias Renovåveis is a holding that operates in the development, implementation and operation of renewable energy, focused on wind power plants and small hydro. While feasibility studies took place in various regions of Brazil to identify the best location to install wind power plants, the company, founded in 2010, was able to become even more completive and participate in Brazilian government energy auctions thanks to the know-how of its partners. Three companies compose the shareholding structure: the British Actis with 60 percent, the Brazilian Pattac with 24 percent and the Spanish Servinoga S.L with 16 percent. Keeping up with emerging technologies, both wind power and hydroelectric, Atlantic’s high technical and operational capacity put a major spotlight on the company. Always operating with the latest technology equipment, the numbers do not lie. The growth, which has been more than 10 times the generation

Eurus II Wind Farm in Rio Grande do Norte

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Rondinha Small Hydropower Plant

capacity, is solid proof of it. “The big leap happened between 2013 and 2015, and through auctions, we secured projects that totaled 600MW. In a year and a half we grew from 60MW to almost 650MW,” proudly said the Director President of Atlantic Energias Renováveis, José Roberto de Moraes. Wind power plants Atlantic’s operations are concentrated in the state of Rio Grande do Norte—with wind power plants Eurus II and Renascença, both having 30MW power and operating since 2014; and Morrinhos Complex, schedule to start its activities in the second semester of 2015 with an 180MW capacity. The Santa Vitória wind power plant is located in Rio Grande Sul state and will have a 207MW potency. It should kick off its operations

“In a year and a half we grew from 60MW to almost 650MW” – Director-President of Atlantic Energias Renováveis, José Roberto de Moraes

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Eurus II Wind Farm in Rio Grande do Norte


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within the next two to three years. The small hydros are located in Santa Catarina state. Together, PCH Rondinha, operating since July 2014, and the PCHs Panel and Campo Belo, have a production capacity of 30MW. However, according to Moraes, “The challenges converge to financial and implementation/operation aspects.” In order to maintain a solid structure and keep growing, the company relies on important partners. “When it comes to financing, we have advisory services and partnerships with the top Brazilian banks. In regards to implementation/operation, we have contracts with big national and international suppliers,” he added.

Rondinha Small Hydropower Plant

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SUSTENTABILITY

ENVIRONMENTAL RESPONSIBILITY

RESPECT FOR NATURE

We help you build respecting nature

ENVIRIONMENTAL ENGINEERING - GEOTECHNOLOGIES - ENVIRONMENTAL STUDYS AND MONITORING

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ACCIONA-WINDPOWER.COM Visit us at Brazil Windpower, stand 74/77

Avenue Luís Viana, 6462 | Torre West Salvador | Bahia | BRAZIL | +55 71 3037 9106 napeia.nordeste@napeia.com.br


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Alliance with society and sustainability Atlantic’s enterprises also bring benefits to local communities through programs that improve the infrastructure and educates about its projects’ implementation. “Atlantic is one of the companies that assists in the maintenance of the Educational Center João Paulo II, in Piraquara, Paraná state, which offers educational supplement to 300 needy children between the ages of 3 and 9,” Moraes exemplified. Fulfilling its social and environmental responsibilities, the company implemented a few actions that should be highlighted: To the Sound of Wind - The goal of this social communication plan is the dialogue with inhabitants of neighbor areas to the wind power plants. The plan foresees to enlighten the population about the enterprise and its social and environment impacts involved in the project. w w w. a t l a n t i c e n e r g i a s . c o m . b r

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PCH Rondinha’s power house

Ecoar - Operating in the social, cultural environmental areas as well as popular entrepreneurship, the “Socio-environmental Responsibility Ecoar Project” is part of the strategy of Morrinhos’ wind power plant implementation, in the city of Campo Formoso, Bahia state. The idea is to increase the potential od positive factors innate to the community that reside in areas influenced by the wind power complex. BNDES - The National Bank for Economic and Social Development, through the Integrated Social Project, organizes action to raise and direct funds to effectively improve the infrastructure of the regions where the 96

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projects are implemented. The entrepreneurs commit themselves to make available resources and BNDES organizes the money distribution based on need. The goal is to contribute to the improvement of socio-economic indicators of these cities and the lifestyle of the population. Above all, the Atlantic meets all environmental requirements of the agencies for licensing and its investments in clean energy matrices save natural

“When it comes to financing we have advisory services and partnerships with the top Brazilian banks. In regards to implementation/ operation, we have contracts with big national and international suppliers” – Director-President of Atlantic Energias Renováveis, José Roberto de Moraes

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Renascença V Wind Farm in Paraz

resources and lead development regions of Brazil, including the Human Development Index (HDI) are reduced. Growth with investment Focusing on technology, the company is implementing an operations center through which all wind farms and small hydro power plants will be monitored from a distance. “The amount invested is around USD 940, 000,” said Moraes. Overall, the last three years the Atlantic has invested over USD186 million and, according to the Moraes, “We can forecast investments for 2015 at approximately USD 368 million.” “The company has wind and hydro projects in the states of Piauí, Bahia, Rio Grande do Sul and Santa Catarina states,” he summarized. 98

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Company Information INDUSTRY

Electric Energy HEADQUARTERS

Curitiba/PR - Brazil E S TA B L I S H E D

2010 EMPLOYEES

50 PRODUCTS/ SERVICES

zinho - RN

Each year the Atlantic becomes more competitive in the renewable energy market. The business plan of the company has programmed investments through 2018, totaling USD 521,000. Besides Morrinhos and Santa Vitória do Palmar wind farm complexes, the Clay Lagoon Complex, located in Piauí state, also enters the expansion plan, where operations are planned to begin in late 2018. “With this, to consolidate the wind energy segment with the implementation and operation of 650MW by the end of 2018 is our goal,” concluded the director-president.

Development, renewable energy implementation and operation, wind power plant focus and PHCs MANAGEMENT

Director-president: José Roberto de Moraes Chairman of the board of directors: Sérgio Brandão Administrative and financial director: Thiago Corrêa Marder Director of Operations: Miguel Diaz

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MORE POWER for El Salvador

Consumer and commercial power supply, diversified by renewable sources. 100

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Written by: Rebecca Castrejon, Editor Produced by: Jassen Pintado, Director of Projects for WDM Group - LATAM Interviewee: Roberto Gonzalez, General Manager of DistribuidorawdewElectricidad w . e e g s aDELSUR .com

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DISTRIBUIDORA DE ELECTRICIDAD DEL SUR, S.A DE C.V

M

ore than 360 thousand Salvadorans in the departments of La Libertad, San Salvador, La Paz, San Vicente and Cuscatlan, have witnessed the qualitative and progressive commitment of Distribuidora de Electricidad DELSUR in the national electricity market.

Technical and operational management

Its quality is described through international certifications gained in the last 20 years and by offering industry standards and regulatory ethics in the electricity sector. This has also increased the job security of workers in the plant and profit growth for all shareholders.

at DELSUR

DELSUR has been recognized during the last two consecutive years by the Regional Energy Integration Commission (CIER) due to the company’s results obtained at the Regional Customer Satisfaction Survey, obtaining Silver (2011) and Bronze (2012) awards. DELSUR is the only energy company from El Salvador that has managed to stand out from 40 companies operating in 14 countries in Latin America

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Being one of the best electric power distribution companies in Latin America, they have earned their position as leaders after elevating the economic value in El Salvador. DELSUR’s national endeavor was recognized by one of the largest conglomerates in the region, Group EPM (Empresas Públicas de Medellin), as a subsidiary of the group, DELSUR would pursue a joint plan in benefit of the region’s environment. As part of its industrial diversification, the company has incorporated ELEKTRICA, a line which provides a range of solutions to businesses in El Salvador, such as: design and installation of substations, corrective and preventive maintenance, thermography, energy audits and


L AT I N A M E R I C A

other services that ensure quality and costeffective operations. The second line HOGAR, is a business unit that provides technology and home appliances, bringing modern equipment to every household in El Salvador. Some of these products are mobile phones, video and audio stations, furniture, computer systems, etc., in partnership with global brands such as Toshiba, Epson, LG, BlackBerry, Nokia, Sony, Dell, Panasonic, Huawei and more. Today, DELSUR continues to develop important projects to optimize its distribution network, reaching new homes with investment in renewable sources. According to figures from 2014, the company ended with a net profit of US $11 million and $13.4 million in capital expenditures.

Headquarters in Santa Tecla

Key People

Roberto Gonzalez General Manager for Distribuidora de Electricidad del Sur, S.A de C.V Mechanical and electrical engineer, who graduated from ITESM. He began his managerial experience as supervisor of planning and operations in the Hydroelectric Executive Commission of Rio Lempa. By the end of 1998, he held the post of General Manager of the Transactions Unit of electricity in El Salvador. In July 2001 he continued his career in AES transmitters as Supervisor of Developments, years later he served as Commercial Manager of Cenergica Nejapa Power until October 2007. He currently serves as General Manager of Distribuidora de Electricidad DELSUR, a leadership he has maintained for seven years, using his experience of 30 years in the sector.

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C O M PA N Y N A M E

Commitment to occupational safety

In an interview with Roberto Gonzalez, General Manager of Distribuidora de Electricidad, he mentioned some of the company’s most innovative projects, growth, projections and inclusion of renewable programs, as well as synergies with other allied companies of Group EPM, in an effort to optimize logistics through a joint purchase of electricity, specially between all sister companies in Central America. Central warehouse

“This depends on how the regional market evolves and if the rules permit the flow of energy through these countries to have joint energy sources,” said Gonzalez. 104

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SECTOR

Programas de inclusión

Another important participation comes from their suppliers and local producers, from who DELSUR buys materials such as Cerrajes, concrete poles and electrical conductors. “We have lots of local representatives with whom there is a good proximity, allowing us to increase our knowledge of what suppliers have internationally,” said the general manager. Today’s Technology Distribuidora de Electricidad DELSUR has made it a priority to invest in the latest technology as part

“Our staff is very motivated to carry out developments, and to participate in social projects, developing quality to the operation” – Roberto Gonzalez, General Manager of Distribuidora de Electricidad del Sur, S.A de C.V

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of its commitment to ensure electrical continuity. In 2014, the company invested seven million dollars in infrastructure, divided into: • 14 percent to the replacement of assets. • 30 percent to increasing the distribution capacity. • 56 percent to the replacement of equipment. The substation San Marcos is another one of these industrial innovations and a project that will benefit around 12,000 homes in San Salvador. DELSUR is also investing US $400,000, in the construction of two new access points in substation ETESAL, enhancing commercial power supply for civil works and electromechanical projects.

New substation in Cuscatlán

SUPPLIER PROFILE

CONDUSAL is a company dedicated to the manufacturing and marketing, of copper, aluminum and bimetals conductors, providing solutions to electrical distribution for residential, commercial and industrial purposes. Meet international standards of manufacturing and quality seals. Website: www.website.com

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DISTRIBUIDORA DE ELECTRICIDAD DELSUR

CEO of DELSUR with non-electrical substation maintenance employees

DELSUR now uses SAP to streamline the administrative area and digitize processes. Additionally, they have integrated handheld devices for recording information on the field, which means mobilizing attention to prevent network failures. One example is the incorporation of Advanced Control Systems to contain power outages, and the inclusion of other systems such as SCADA, OMS and DMS from their technology supplier. Substation San Marcos

“We want to update all management systems, these being commercial, administrative, distribution and operations. On this last one we are trying to incorporate geo-positioning to optimize all objectives,� said Gonzalez. 108

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ENERGIA

DELSUR is constantly updating all electrical infrastructure

Energy Efficiency El Salvador has been highlighted as one of the countries with the largest energy projects in the region. The company follows national initiatives, such as El Salvador ahorra energía, and incorporates JICA best practices (Japan International Cooperation Agency). “As a distributor we are very concerned in promoting the use of renewable energy in El Salvador. We support all state-related plans to make a significant change in the energy matrix of the country,” said the general manager.

“Our vision is to modernize our main management systems” – Roberto González, General Manager of Distribuidora de Electricidad del Sur, S.A de C.V

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With an estimated capital of US $200 million, DELSUR will integrate solar-photovoltaic and wind power supply to its operations, starting next October 2016. “With the ultimate goal of changing the energy matrix, in 2013 we led a process which was awarded a thermal generation plant based on liquefied natural gas. We hope to begin operations in 2019, adding another supply that will be friendlier to the environment, “ said Gonzalez.

Diversifying the energy matrix

Internally, its sustainable efforts include recycling and advertising environmental awareness through conscious programs such as the “Great Race for the Environment”, held in collaboration with Fundacion Salvanatura.

SUPPLIER PROFILE We are a worldwide class company with a well-established presence in the Latin American region, our experience has gone beyond more than 34 years which allow us develop comprehensive and innovative solutions via galvanized steel by hot immersion and engineering projects consultancy. The technical training of our line of business for the Energy as well as the Telecommunication market and The Industry in general, joined together with the serious commitment that connects us to our clients, those are the pillars on the daily tasks of every member on our human talent team. Our main concern is the development of win-to-win business with our Stakeholders. We guarantee a well-defined quality policy which place us as a reliable provider and a great supporter; we are the best allied for the growth of your projects.

Website: www.imfica.com Contact us: El Salvador (+503) 2214-0800

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L AT I N A M E R I C A

Human Management The nearly 300 employees in DELSUR go through a training process to strengthening their capabilities, optimizing their occupational health during operations. In recognition of the formative responsibility of the company, the multinational company 3M, awarded them with the recognition 3M for its efforts in occupational safety.

Colombian technicians training DELSUR counterparts in line maintenance procedures

“Our staff is very motivated to carry out developments, they participate in social projects and give purpose to our operation,� said the general manager.

Technological advances at DELSUR

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DISTRIBUIDORA DE ELECTRICIDAD DEL SUR, S.A DE C.V

Social Responsibility DELSUR social initiatives include the integration of women as electrical operators, and driving progress in El Salvador through local alliances. Such is the case of working with municipalities and organizations like FISDL, to introduce electricity in rural areas. Substation Monserrat

As for education, DELSUR has sponsored computer science and English classes for six schools in the city. They also seek to improve the quality of life of their employees by providing free healthcare.

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xiao@hennk.com


L AT I N A M E R I C A

Company Information

Five-year Projections Coping with the Salvadoran economy, DELSUR is designing long-term plans, which include the consolidation of energy within the Department of San Salvador, this being a metropolitan area of great importance and rapid commercial and residential growth.

NAME

Distribuidora de Electricidad del Sur, S.A de C.V INDUSTRY

“We expect at least one new medium-voltage substation to be installed for distribution, but its location depends on the growth of the industry, and we want to develop it in an area of greater demand,” added Gonzalez. In the technological context, they are studying connectivity and applications via Smart Grid, a modern electrical network that will optimize all energy supply in DELSUR.

Power supply HEADQUARTERS

Santa Tecla, La Libertad, El Salvador FOUNDED

January 1996 EMPLOYEES

“We are calling equipment suppliers that relate to the distribution of Smart Grid to present us their latest developments,” said the general manager.

300+ REVENUE

USD $343.5 million

They are studying software innovation with the inclusion of a digital communication system, in order to migrate the entire business and improve the logistic link with suppliers from the network.

WEBSITE

www.delsur.com.sv

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On the way to becoming the leader in geothermal energy production in America

Written by: Rebecca Castrejon, Editor Produced by : Jassen Pintado, Director of Projects for WDM Group – LATAM

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POLARIS INFRASTRUCTURE INC.

P

olaris Infrastructure is a renewable energy company whose business is the acquisition, exploration and development of geothermal energy projects. The company is working to meet the growing demand for green energy in America and around the world. Founded in 2008 as Ram Power, it has continued the management of geothermal projects under a highly experienced team.

Geothermal project Orita in California

Under a new corporate platform based in Reno, Nevada in the United States, Polaris Infrastructure has a high interest in exploring geothermal projects in the United States, Nicaragua, Canada and other countries. The mission of the company is to become a leader in the global development of renewable energy and a global provider of clean and reliable geothermal energy.

Leaders in green technology

Restructuring Energy With a vision to offer long-term profits and added value statistics to shareholders, Ram Power changed its name to Polaris Infrastructure Inc. (OTCPK: RAMPD). The company’s main operation is located in Nicaragua, where they are continually expanding their geothermal plants. The company was founded in 2008 as Ram Power Inc., but after a radical restructuration and operative transformation towards 118

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internationalization, financial hedging and equity, the management team decided to change the name to Polaris Infrastructure.

Key People

Current Operations

Country manager

Polaris main operation is the energy station San Jacinto-Tizate, located northeast of Nicaragua, near the city of Leon. Founded in 2002, this plant has a 72 MW capacity as of today, and is recognized as one of the best geothermal properties in Nicaragua. However, the project has an estimated total capacity of 277 MW, forcing Polaris to continue exploration efforts to increase demand. The construction of San Jacinto-Tizate was carried out in three stages. In June 2005 the company began operating with a small plant in

Antonio JosĂŠ Duarte

Industrial Engineer and a graduate of American University (Universidad Americana) in 2003, with further studies in financial management. Duarte has been part of Polaris since May 2013, holding the position of general manager since February 2014, and as projects manager since this past May.

Aerial photo of the plant in Nicaragua w w w . r a m - p o w e r. c o m

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Committed to energy efficiency

A look inside Polaris geothermal

San Jacinto, which had an output of 10 MW, using two turbines of 5 MW each. In 2010, the construction of Phase I began with a capacity of 36 MW using Fuji Electric turbines. Two years later, the company started Phase II, generating an additional 36 MW. Phase I reached commercial operation in January 2012 and Phase II was completed in December of the same year.

developments

Polaris is currently working on Phase III, which predicts a total increase of 10 MW using a binary unit with geothermal fluids, these being separated by geothermal steam to power the existing plant, and not requiring any production wells or additional injections, therefore, costs are not expected to increase.

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Muffler and separator unit

Another project is Casita, also located in Nicaragua, which completion of a geothermal power plant will produce 140 MW. Additionally, the company has various concessions and small developments still in exploration. Renewable Energy, Technology and Leadership Following an investment trend in renewable and clean energy sources, globe investors have deposited their confidence in Nicaragua to promote green energy innovations. Polaris Infrastructure annually saves the country about US $90 million in oil imports, which Nicaragua has

“To develop energy resources we must be competitive in the Nicaraguan and Central American market, competitive in the selling price of energy, and by being beneficial to the environment we can help consumers in Nicaragua and potentially the rest of the region�

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PRTemp1000

Pressure and Temperature Data Logger

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Contact a MadgeTech customer service specialist today! (603) 456-2011 | sales@madgetech.com | www.madgetech.com


L AT I N A M E R I C A

not imported to generate power, on the contrary, this has been complemented with the use of wind farms, hydropower and biomass plants. With the growing popularity of geothermal energy as an alternative to fossil fuels, Polaris Infrastructure has invested a large capital in research and development. Intending to use EGS systems, although not yet commercially viable, these are designed to remove heat from areas with low permeability and porosity, to substantially improve extraction methodologies. Additionally, Polaris plans to introduce these enhanced geothermal systems, which consist in production and injection wells drilled at more than 10,000 feet, deep enough to reach permeability and porosity.

Company Information NAME

Polaris Infrastructure Inc. INDUSTRY

Energy HEADQUARTERS

Reno, Nevada, United States FOUNDED

2008 EMPLOYEES

120+

In an important recent report entitled “The Future of Geothermal Energy�, the Massachusetts Institute of Technology estimates that EGS could provide up to 100 GW of new geothermal capacity.

REVENUE

USD $90 million WEBSITE

www.ram-power.com

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