www.energydigital.com | July 2016
The case for carbon capture and storage Five floating wind projects currently in the works
SWITCHING GEARS
How electric bikes have proved their mettle at the Isle of Man TT
IN THIS ISSUE
EDITOR’S COMMENT
I N J U N E , I H A D the pleasure of travelling to the Isle of
Man to speak with a number of engineers who had built electric motorcycles to enter into the Isle of Man TT’s electric motorbike race, the TT Zero. Prior to my trip to the island, I’d never have considered myself a motorsport aficionado. Little did I know that no-carbon technologies are making their way to starting lines across the world. In this month’s magazine, I wanted to showcase technologies in-process — be they battery-powered motorbikes or floating wind turbines. Carbon capture and storage has recently been making headlines in my native UK and, with the help of an expert from the Energy Technologies Institute, I discovered just how vital the technology is for meeting carbon reduction targets. Innovation is not necessarily about plucking new knowledge from thin air, but creatively expanding on existing ideas. This is very much the case with floating wind farms, five of which are featured in this month’s issue. The industry has seen how efficient offshore turbines can be, and now groups of companies worldwide are coming together to find out how to best build a turbine that can be placed further offshore, thereby harvesting stronger winds. We hope you enjoy the issue. As always, leave us comments and feedback @EnergyDigital
Jennifer Johnson
Editor jennifer.johnson@bizclikmedia.com
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F E AT U R E S
SWITCHING GEARS How electric bikes have proved their mettle at the Isle of Man TT
Technology
TOP10
When renewables aren’t practical
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July 2016
FIVE FLOATING WIND PROJECTS CURRENTLY IN THE WORKS
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Company Profiles
36
UASG/AES (Spotless Group)
Australia
72
60
ASPLUNDH Australia
86 AES MÉXICO Latin America
SUMMUM (formerly Tiger Companies) Latin America
100 114 DELTA GROUP Australia
AGGREKO Latin America
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Wr it t e n by J ENNIFER J OHNSON
SWITCHING GEARS How electric bikes have proved
their mettle at the Isle of Man TTÂ
PROFILE
For over a century, the Isle of Man TT has been Europe’s premier motorcycle racing event. Reputations have been made and shattered on the island’s famously challenging Mountain Course. In 2010, a new type of bike arrived on the grid — without a fuel tank and with a lot to prove.The zero emissions bikes in the TT Zero race have evolved rapidly since, and our editor travelled to the Isle of Man to see just how far electric motorcycles have come — and how far they’ll have to go to rival their fossil-fuelled counterparts. 7
PROFILE EVERY YEAR, AS spring gives way to summer, hundreds of motorcycles — and their riders — rumble onto the Isle of Man to compete in the most dangerous (and prestigious) race of its kind, The Isle of Man TT. Some are racing to win, others simply want to complete a single 37.73-mile lap around the terrifying and exhilarating Snaefell Mountain Course. However, there is one thread which unites all of the TT competitors: they are here to build a legacy for their teams, and for themselves. Since it was introduced in 2010, the TT Zero race, which exclusively features electric motorbikes, has been especially eager to gain legitimacy among its fossil-fuelled counterparts. In the absence of a petrol bike’s deafening roar, electric motorcycles have had to prove that they are equally powerful and competitive. “When the electric bikes first started they were a bit of a joke to the ‘petrolheads’” said Adrian Moore, the Development Manager for Manufacturing and Inward Investment at the Isle of Man Government. “They aren’t a joke anymore.” This year, eight teams set out to race the Mountain Course on 8
July 2016
zero-emissions bikes. Four of them — Mugen, Saroléa, TMR and Victory — are independent motorsport teams looking to put their products to the test on the Isle’s challenging roads. The other five are university teams — Nottingham, Brunel, Bath and Kingston — out to find a high-octane application for their technical knowledge. The test-run On 6 June, two days before the race, the teams were preparing to carry out their final qualifying lap. Though some were more confident than others, the camaraderie among the competitors was evident. Collectively, they weren’t seeking a trophy and bragging rights, but an expanded knowledge of how to best engineer an electric motorbike. Japan’s Mugen Motorsports, which was co-founded by Hirotoshi Honda, son of Honda founder Soichiro, arrived on the Isle of Man this year as reigning champion. It shattered lap records in the two consecutive years prior, and was hoping to replicate its success a third time with a new bike custom-built for the occasion. “In theory, we could have got last year’s bike, brought it here,
HEADLINE
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PROFILE
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July 2016
polished it up and probably still been competitive,” explains Colin Whittamore, General Manager of Mugen Europe. “But in practice, we effectively threw that one away and built another one.” However, a new and improved motorcycle isn’t necessarily an imperfect one. There is still some development to be done before electric bikes are wholly practical racing vehicles, particularly where their batteries are concerned. “Our technical challenge now is to keep the temperature of the battery pack down,” says Whittamore. “That will restrict how fast we go this week: battery temperature will be our ceiling.” Engineering excellence The majority of electric motorbikes are powered by lithium ion batteries, the same variety of rechargeable cell used widely in mobile phones. For TT racing purposes, a bike must carry enough battery power on board to comfortably see it around the Mountain Course without weighing it down. This year, Belgium’s Team Saroléa found themselves negotiating the fine balance between keeping
their bikes lightweight and ensuring they perform on the racecourse. “It’s really about finding the sweet spot between how much battery you put in the bike, how much it weight it can handle,” says Bjorn Robbens, who co-owns Saroléa with his twin brother Torsten. “Weight is the key enemy to any electric vehicle, I think.” Saroléa has an added incentive for achieving results at the TT — it is aiming to capitalise on the visibility of the brand by setting up commercial motorcycle production facilities on the island. The company was first established in Belgium in the 1870s, and was defunct by 1963. In 2008, the Robbens brothers revived the brand and in 2014 they entered their first Isle of Man TT, with the intention of eventually producing ‘road-legal’ versions of their highperformance racing bikes. “[The TT] has been a tremendous push for us,” says Robbens. “The bike was really built for this track. So building it here, selling it here, just makes sense.” “We already have the brand and a legacy. If you can take the Isle of Man and the TT along with that, it will really increase the speed with 11
PROFILE which we can go to the market.” The Isle of Man’s Department of Economic Development is equally interested in attracting cuttingedge, sustainable businesses to its shores. With a longstanding aerospace engineering industry, the island is hoping to further diversify its economy and expand its highly skilled workforce. And its status as a British Crown Dependency means that businesses will enjoy the benefits of its lower tax economy and greater political autonomy. While the TT is an undoubted point of pride, and revenue, for the Isle of Man, the TT Zero is particularly significant as the island seeks to build a reputation for innovation. “We’ve got clusters of very highly technical engineers here across the Isle of Man,” says Adrian Moore, explaining why companies like Saroléa are, and should be, drawn to the island. “There’s an instant supply chain for them. It is a very exciting time here for manufacturing.” Bringing the classroom to the racecourse The TT Zero’s five university entrants arrived on the Isle of Man ready to 12
July 2016
absorb and exchange some of the engineering knowledge that has accumulated at the TT. Much like their non-student counterparts, they were also hoping to make a name for themselves on the Mountain Course. “The team is mainly researchers and students from the university,” says Professor Pat Wheeler of the University of Nottingham. “There is nobody employed to do it: it’s all evenings and late nights and early mornings.” Though motorcycle engineering is not the sole pursuit of the technicians on Nottingham’s team, their goals were far from modest: “We’d love to be up there with Victory and Mugen,” Wheeler says, naming the race’s two major motorsport companies as the entrants to beat. “The goal coming into this was to be competitive and see what happens.” Crossing the finish line Just five of the eight teams that intended to compete in the TT Zero ultimately reached the starting grid on 8 June. Technical problems plagued the three non-starters, including Saroléa, who later released
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PROFILE
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a statement reporting issues with the throttle on both of its bikes. In the interest of their riders’ safety, the Robbens’ made the difficult decision not to enter the race. In true TT form, there were surprises at the podium once all was said and done. Mugen walked away with firstplace honours once again, though rider Bruce Anstey failed to exceed last year’s record lap time of 119.27mph. Victory Motorcycles’ Brammo Power bike came in second, with a lap time of 115mph. The University of Nottingham managed to steal a surprise spot in the top three after Mugen’s second bike cut out with TT legend John McGuinness behind the wheel. Brunel University finished last — posting a lap time of 94.628mph. If anything, this year’s TT Zero showed that there is not yet a clear winner in the race to build the ideal electric motorcycle, but each of the entrants will eagerly take on the challenge. “We want to win the race,” Mugen’s Whittamore says. “We want to set some records, but we also need to expand our knowledge.”
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TECHNOLOGY
When renewables aren’t practical The case for carbon capture and storage W r i t t e n b y : J E N N I FE R JO H N SO N
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TECHNOLOGY
CLIMATE CHANGE IS an inherently emotive issue — inspiring action in some and denial in others. But regardless of where the public stands, over 150 governments worldwide have formally adopted carbon reduction targets in an effort to mitigate the environmental damage caused by the combustion of fossil fuels. The UK has pledged to reduce emissions by at least 80 percent of what levels were in 1990 by the year 2050. And while solar panels and wind turbines may enjoy a positive public perception, emissions targets simply cannot be reached using renewables alone. Carbon capture and storage (CCS) has been posited as a vital 18
July 2016
technology in ensuring that the UK’s carbon budgets are met, but with the government cancelling a £1 billion funding competition last year, many CCS proponents have been left wondering how to proceed. While the idea of capturing CO2 from flue gases, power stations and industrial processes and storing it deep underground might sound hazardous, Andrew Green, CCS Programme Manager at the Energy Technologies Institute (ETI), insists that the associated risks are financial rather than environmental. “Don’t imagine CCS as though you’ve got a big bomb of CO2 under there that might go off. The carbon
THE CASE FOR CARBON CAPTURE AND STORAGE
dioxide is going to be distributed through a large body of porous rock, it’s not sitting in a big tank,” Green says. In essence, CCS involves separating carbon dioxide from the mixture of gases emitted from a tail pipe or a power station’s chimney. Once the CO2 has been captured, it can be pressurised and transformed into a liquid-like state for transport through pipelines and, ultimately, burial inside porous geological formations deep underground. In the UK, most of the practical prospective stores are offshore — anywhere between one and four kilometres beneath the seabed. An impermeable layer of so-called ‘cap
rock’ will rest over the top of an ideal CCS formation. Once underground, there are a number of natural mechanisms which will ensure that carbon dioxide doesn’t escape: Firstly, the buoyant CO2 will slowly move upwards through the porous rock until it is trapped by the cap rock. Along the way it gets caught in the microscopic channels in the porous rock like water in a sponge. Over time, the carbon dioxide will dissolve into the saltwater already present in the formation and, over hundreds or thousands of years, harden into solid carbonate. “If you choose the right geology you end up with a very secure long term store for the CO2,” Green says. 19
TECHNOLOGY
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July 2016
THE CASE FOR CARBON CAPTURE AND STORAGE
‘While solar panels and wind turbines may enjoy a positive public perception, emissions targets simply cannot be reached using renewables alone’ Carbon capture facilities can be put in place at the site of any large-scale process which produces a lot of CO2. The CCS competition which was axed earlier this year was aimed at installing carbon capture and storage facilities at two existing UK power plants. “Obviously there’s a lot of licking of wounds going on in CCS at the moment after the cancellation of the competition,” Green says. “I guess there are a number of people thinking ‘where do we go now?’ and there are a number of different routes.” In order to get carbon capture and storage off the ground in the UK, Green believes that a private sector leader will have to be willing to come forward and invest in the installation of the technology. “If we start at the top, the key issue is that virtually any investment an energy company makes will be driven
by policy,” Green says. “Whether it’s a wind turbine, or a new gasfired power station, or putting diesel generators in fields – all of these things are driven by policy environments. “I guess one of the biggest challenges for CCS has been around coming up with a policy framework and the support for that will enable the private sector to make those investments and be confident that they can see a return.” Without public sector funding, companies will need to make a significant upfront investment in CCS facilities and, in return, will receive income streams through the lifetime of the plant. However, waiting for costs to fall before implementing the technology is not the answer. The first plant to be built in the UK will always be an expensive undertaking, and will come with its own location-specific 21
TECHNOLOGY risks. Analysis by the ETI has shown that once one CCS facility has been constructed, the cost of building others will inevitably decrease. “The first jump is going to be a little bit expensive because you’re going to have to put the infrastructure in, although our analysis shows that with close attention to how the project is designed these costs can be manageable,” Green says. “It’s not a technology issue, there’s not a big technology development requirement: it’s about taking that first jump.” The ETI has created a tool called the Energy System Modelling Environment (ESME) which is capable of finding the least-costly energy system designs to meet stipulated sustainability targets. When the model is run to achieve the UK’s 2050 targets in the most cost-effective way, it has consistently shown that CCS is the single-most valuable technology in the country’s
carbon reduction arsenal. Renewable energy has a sizeable part to play in reducing greenhouse gas emissions, but fossil fuels will likely remain a practical, and integral, part of our energy mix in decades to come. “You could carpet half of Southern England with solar panels, but the other issue you face is energy storage,” Green says. “You need to provide energy when it’s needed. And when it’s not needed, if you’re making electricity, you’re going to have to store it somewhere. Fossil fuels are the most efficient way of storing energy known to man at the moment.” Some critics of CCS have voiced concerns that capturing carbon, rather than eliminating it entirely, will further obstruct the process of fossil fuel divestment. For Green and the ETI, the perceived benefits of carbon capture technologies arise from their
‘The innovation that is needed in CCS isn’t so much traditional technological innovation, it’s innovation of the market and the investment climate’ 22
July 2016
To Fuel Cell Market Refinery Industry
H2 Plant
Power Plant
CCS Plant
Coal or Gas
Grid
H2
Electrolyser
Syngas CO 2
H2 CO 2 To store
OVERBURDEN
CO 2 Buffer H2 or H2 / N 2 300 - 1800m deep
SALT BED © Energy Technologies Institute
ability to help the UK meet its carbon reduction targets over the next 35 years. In fact, fossil fuel companies, with their existing knowledge of offshore infrastructure, are well-placed to assist with the storage of CO2. “Working with fossil fuels and the fossil fuel companies with the skills, with the incentives to do it, is a positive way forward to try and find the most cost-effective solution,” says Green. Getting CCS under construction and into operation is going to take cooperation from multiple players. The government needs to work with industry to provide mechanisms that allow investors to see a realistic
prospect of a return on their investment, and risks must be shared going forward. There is also something to be said for the careful and costeffective construction of the UK’s first plant. This will provide the best basis for further CCS development. Granted, getting started is easier said than done, but experts know what needs to happen — now it’s down to those with the power to act to take action. “The innovation that is needed in CCS isn’t so much traditional technological innovation,” Green says. “It’s innovation of the market and the investment climate.” 23
LIST
FIVE FLOATING WIND PROJECTS CURRENTLY IN THE WORKS Written by Jennifer Johnson
The future of offshore wind energy is bobbing in the sea, just beyond the continental shelf… Wind turbine technology has come a long way in the quarter of a century since the world’s first offshore wind farm, Denmark’s Vindeby, was installed. The first turbines placed at sea had a capacity of roughly .45MW and stood just 52.5m tall. Manufacturers have since developed larger and more effective turbines, but innovation in wind energy is far from over. Traditional ‘fixed’ turbines are limited to water depths of around 40 to 50m, mostly relegating offshore wind farms to the shallow waters of the continental shelf.
However, deploying turbines further offshore offshore, beyond 100m, could allow them to harvest energy from some of the strongest winds on the planet. There are currently dozens of pilot projects trialling socalled ‘floating’ turbines — which consist of a wind turbine mounted on a buoyant structure — capable of generating electricity in depths where fixed towers could not be placed. Below, we’ve gathered the details of five promising floating wind projects that could very well revolutionise wind energy all over again.
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LIST
1
Trident Winds’ Morro Bay Offshore Project The USA has historically lagged behind Europe when it comes to the uptake of offshore wind. With the country’s very first offshore wind farm scheduled to come online later this year, the prospect of installing floating wind capacity seems even further off. However, Seattle-based project development company Trident Winds LLC is hoping to have turbines bobbing in the Pacific Ocean in just under a decade’s time. Trident’s Morro Bay Offshore Project, which is still in the planning stages, will consist of roughly 100 floating offshore wind systems (FOWS). Each FOWS is made up of a floating support structure and a wind turbine with a nameplate capacity of 6MW or greater. Initially, Trident is striving for a total nameplate capacity of 765MW with the project, though this has the potential to be expanded at a later date. The proposed wind farm will be located 33 miles off the coast of Morro Bay, California, where turbines will be able to reap the benefits of average wind speeds of 8.5 miles/second. Trident is aiming to launch the Morro Bay wind farm in 2025.
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F I V E F L O AT I N G W I N D P I L O T P R O J E C T S
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LIST
28 June 2016
F I V E F L O AT I N G W I N D P I L O T P R O J E C T S
2
New England Aqua Ventus On the opposite side of the USA, a more modest floating wind pilot scheme just became eligible for almost $40 million in funding from the Department of Energy. The New England Aqua Ventus project will be comprised of two 6MW turbines placed in the waters off Monhegan Island, Maine. The University of Maine, who are leading the initiative, have stated that the objective of Aqua Ventus is to demonstrate the use of floating wind technologies at full scale. The project is already backed by a consortium of partners — including French defense company DCNS and construction contractor Cianbro. Aqua Ventus boasts a floating hull design, which has been tested on a 1:8 scale prototype called VolturnUS.
Partners: University of Maine and UMaine Advanced Structures and Composites Center, Emera Inc., Cianbro and DCNS.
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LIST
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Floatgen While many of France’s geographical neighbours are world-leaders in offshore wind, the country has yet to install any turbines of its own. This is set to change once construction on Floatgen — a floating turbine with a ring-shaped foundation — is complete in 2017. Similar to Aqua Ventus, the objective of the 2MW Floatgen turbine is to demonstrate that floating wind turbines are technically and commercially viable. Floatgen will be assembled onshore starting in September and, once complete, will be towed out to sea off the coast of Le Croisic. When the turbine is floating offshore, it will be connected to its anchoring system and an electricity export cable. The Floatgen project is backed by a consortium of seven European companies and research bodies, including Ideol, who designed the floating foundation; Zabala, a leading Spanish consultant in innovation management and Fraunhofer IWES, who provided comparative analysis of floating solutions.
Partners: Ideol, Centrale Nantes, Bouygues Travaux Publics, University of Stuttgart, RSK Group, ZABALA and Fraunhofer IWES
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LIST
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F I V E F L O AT I N G W I N D P I L O T P R O J E C T S
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WindFloat Atlantic (WFA) project Earlier this month, EDP Inovação Executive Director Luís Manuel confirmed that a project called WindFloat Atlantic (WFA) was entering the advanced stages of development in Portugal. This comes as Principle Power, an offshore wind technology and services provider, concluded the five-year testing of its 2MW WindFloat prototype, which was installed 5km off the coast of Aguçadoura in northern Portugal. WFA will likewise utilise the WindFloat floating foundation as a mount for three or four turbines with a total capacity of 25MW. Like its predecessor, the project will be located off of the northern Portuguese coast — this time 20km from Viana de Castelo.
Partners: EDP Renewables (EDPR), Diamond Generating Europe, Chiyoda Generating Europe, ENGIE and Repsol.
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LIST
Hywind Statoil, the majority government-owned Norwegian oil company, is currently in the process of building what will likely be the first floating wind farm in operation worldwide. The Hywind pilot project will consist of five turbines, each with a 6MW capacity, floating in water over 100 metres deep.  The pilot park covers an area of four km2 about 25km off the coast of Peterhead, Scotland. This patch of the North Sea boasts wind speeds of around 10m/second. The Hywind turbine’s floating foundation is ballast stabilised and secured to the seabed using three mooring lines attached to anchors.
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PUTTING in its p
Climate change targets apa facilities can save millions o and cutting waste: Spotless business unit to hel
Written by: J
Produced by
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art, businesses, utilities and on energy by buying smart s Group has put together a lp them do just that
John O’Hanlon
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UASG/AES (SPOTLESS GROUP)
L
isted on the ASX, Spotless is one of Australia and New Zealand’s largest and most diverse services groups with interests in facility management, catering and hospitality, cleaning, security, asset management, maintenance, HVAC, mechanical and electrical and utility support services. It started in 1946 with a single dry cleaning store in Melbourne and now employs more than 36,000 people. UASG delivers tailored utility and telecommunications service solutions across all sectors including government and large corporations, employing around 2,000 people. Over the last couple of years it made a decisive move into the field of contracted-out services when it put together the recently acquired entities Utility Asset Management (UAM), Skilltech (a meter reading company) and Fieldforce (a long established energy efficiency specialist) under the leadership of Stephen Ellich, a seasoned CEO with long experience in the telecommunications sector. Ellich heads up the Infrastructure, Telecommunications and Utilities 38
July 2016
group sector within Spotless, and is CEO both of UASG and of the technical and engineering services contracting company AE Smith (AES). Acquired by Spotless in 2015, AES has built a great reputation in mechanical, electrical, energy, fire, hydraulics, plumbing and refrigeration work since it was founded in 1898. It was a considered a particularly good fit alongside
AUSTRALIA & ASIA
UASG, he explains: “Many customers of Spotless have faced challenges with understanding and curtailing their energy spend, and also finding sustainability options around water consumption. Most of the public debate around energy conservation, including solar, wind and battery power, has been conducted at the consumer level, but there has been far less within the medium to large commercial and industrial sector.�
w w w. u a s g . c o m . a u
Key People
Stephen Ellich CEO of UASG & AES Stephen is a senior executive with a 20+ year proven track record of success in leading large, complex, national organisations through establishment, development and transformational change to deliver sustainable growth, profitability and strong operating cash flow. His business expertise has a strong focus on sustainable growth through innovation, combined with astute financial acumen, international experience and the maturity of a senior executive with Board experience, positions him to contribute at all levels.
UASG/AES (SPOTLESS GROUP)
Energy: the hidden cost Spotless plays its part in that sector as a large facilities manager. Within the group, UASG has been able to identify a need and create a unique customer value 40
July 2016
proposition, he continues. “We believe we can deal effectively with ‘managing down’ a customer’s energy consumption and in doing so provide an immediate and long term economic benefit to those
AUSTRALIA & ASIA
customers.” Strategically, this involves moving the company’s mindset away from the proposition that it would carry out project tasks for an agreed sum and then walk away. Instead consider the
problem holistically, auditing the customer’s energy usage, identify the root causes and then engineer an end-to-end solution. In cases where the customer prefers not to fund the capital outlay involved, the w w w. u a s g . c o m . a u
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Smart metering: effective way to reduce cost of energy
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SUPPLIER PROFILE
Employees: 2500+ (globally), 40+ (Australia) Established: 1987 (globally), 2004 (Australia) Industry: Energy metering Services: Electricity metering and data services Secure Australasia is part of a group focused on developing, manufacturing and deploying products and solutions for energy measurement and monitoring. Secure works across the entire energy chain, including utilities, energy retailers, commercial and homes. While we work at the frontiers of technology enabling ‘smart’ energy control and management, we believe in focusing on customer and consumer needs. A 500 strong R&D team focuses on better smart grid and energy management solutions. A reflection of our commitment to our customers, our participation in the design and specification of products for the Australian market has culminated in a range of meters that meet all electronic metering requirements of standards and approvals specific to the region. The Melbourne site hosts a fully accredited NATA 17025 laboratory, delivering metering support services. Secure has over 1,400,000 smart meters deployed in Australia to date. As the energy optimisation and climate change debate intensifies, our group has been developing products and solutions, together with like-minded strategic partners to offer relevant and innovative
solutions to our customers. The Secure UASG-Skilltech partnership is a reflection of this thinking. UASG-Skilltech have worked with Secure as the solution provider to deliver integrated and appropriate metering services to their customers, including: • manually read electronic meters • embedded network; point-to-multi point; metering systems • full end-to-end smart metering solutions. A recent project being undertaken through the partnership is for the upgrade of Secure’s 3 phase manually read meters at a 500+ apartment building complex. These meters will be upgraded to deliver data remotely through a pointto-multipoint RS485/3G solution. This will remove the need to manually read meters and provide tenants with more timely and accurate billing. Going forward, Secure is embracing reforms under the Power of Choice where metering will become contestable in turn promoting innovation leading to greater choice for customers.
Management: Michael Guy, Managing Director Ian Levell, General Manager (Sales and Marketing) Peter Taylor, General Manager (AMI Solutions) Visit our website: www.securetogether.com
Innovative Solutions for Modern Metering
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UASG/AES (SPOTLESS GROUP)
solution might involve a financial as well as an operational solution. The contractor funds deployment over a period of up to 15 years, under a model that delivers economic benefit to the customer from day one, with that benefit growing each year thenceforward. A good example of this was Spotless’s own laundry business. The 19 sites across Australia, some of them dating from the 1950s, faced increased annual energy costs of more than A$1 million as of 2017. Doing nothing was not an option, so UASG looked at replacing old and gas or electric boilers with the latest energy efficient gas micro turbines or co-generation plant as a way to generate power at a cheaper rate. Where appropriate, solar deployment is considered as well: low energy lighting, meter reconfiguration and water recycling solutions are also considered
AUSTRALIA & ASIA
to improve efficiency. “We can upgrade the critical infrastructure on site to provide a reduction in energy and water consumption using technology that will be able to deliver the same functionality at a much lower cost,” he says. Though each case is unique, typically an investment of a couple of million dollars will be recovered by the customer within three years thereafter those savings go direct to that customer’s bottom line. If UASG funds deployment the savings will be seen from year one, while capital costs are recovered over a longer period. Solutions like these apply to any high
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UASG/AES (SPOTLESS GROUP)
energy use business. Laundries are one; another good example would be leisure and aquatic centres and these days few businesses can afford to stay as they are where energy use is concerned. One large not-for-profit services provider for people with disabilities undertook a comprehensive energy upgrade across its facilities: within three
AUSTRALIA & ASIA
months it reported that its energy usage was down by 15 percent, and that it expects to achieve annual savings of $31,000 in HVAC and lighting costs alone. It also remarked on a huge reduction in maintenance call-outs thanks to the greater reliability of the assets installed – and in this case it’s worth noting that the customer was
w w w. u a s g . c o m . a u
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BLUESCOPE AND UASG
RELATIONSHIPS MADE OF STEEL . BlueScope Plate Supplies is proud to be associated with UASG, providing quality steel products and supply solutions. ABOUT BLUESCOPE PLATE SUPPLIES BlueScope Plate Supplies offers a wide range of high quality Australian made steel plate products backed by our expert technical support and flexible supply. OUR PRODUCT RANGE Our range of products comprise:
Key to our offer is our ability to provide JIT delivery services and consistent quality products. With our significant stock holdings we are able to deliver on time, ensuring consistent supply and quality, providing value to key clients like Utility Asset Services Group, (UASG). OUR RELATIONSHIP WITH UASG By working closely together, we are able to ensure both businesses achieve mutually beneficial outcomes and seek out ways to improve through a culture of excellence and innovation. We are able to respond quickly to UASG needs and can accommodate adjustments to project requirements, including design and scheduling changes, without missing critical deadlines.
• TRU-SPEC® steel • XLERPLATE® steel • Weathering Steel • Boiler & Pressure Vessel Plate • Quenched & Tempered Plate • Aluminium OUR SERVICE OFFER As part of the BlueScope group of companies, we have the ability to investigate and produce specially designed steel grades outside our standard range and offer a number of third party certification options as well as non-standard test requirements. We’re committed to providing high quality processing capabilities, ranging from simple processing to more complex and precise processing work. Backed by our commitment to quality, all our products comply with Australian standards and we hold ISO 9001 Quality Management System Accreditation.
OUR INNOVATIVE STEEL EFFICIENCY REVIEW™ With our Steel Efficiency Review™ offer, we can look closely at your business operations to identify potential cost and time savings and make incremental changes which can translate into profit improvements. We have worked closely with UASG to continually improve and increase efficiency in the areas of stock, forecasting and material flow management thereby ensuring optimal supply chain and resource management.
For more information call on 1800 549 197 or visit bluescopeplatesupplies.com.au. XLERPLATE®, TRU-SPEC®, BlueScope Plate Supplies and BlueScope Brand Mark are registered trademarks of BlueScope Steel Limited.© 2016 BlueScope Steel Limited ABN 16 000 011 058. All rights reserved. Steel Efficiency Review is a trade mark of BlueScope Steel Limited. ABN 16 000 011 058
UASG/AES (SPOTLESS GROUP)
AUSTRALIA & ASIA
“Many customers today want to do these upgrades but don’t have the technical know-how or the capital to do it” – Stephen Ellich, CEO of UASG & AES
helped by AES to obtain a $134,000 grant from the Community Energy Efficiency Program (CEEP), which provides co-funding to local governing bodies and non-profit community organisations for energy efficiency projects. The combined expertise of UASG and AES is now united under a common management team, with regional general managers in each state, with the exception of large and complex construction projects requiring skilled project management, which are looked after by a national AES general
manager. The largest such contract currently on hand, worth some $100 million, is to provide HVAC and other elements for the Queensland Government’s $1.8 billion Sunshine Coast University Hospital funded by Lendlease, a new public tertiary teaching hospital. The work started early in 2015 and will be completed later this year, and the hospital is due to open in 2017. A new model for BOOT “Our business has deep and broad engineering expertise,” says Ellich. “When a customer
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UASG/AES (SPOTLESS GROUP)
wants to talk about their problem these experts look at their billing and tariffs and walk through their property as a first pass to identify the potential spectrum of engineering opportunities and the savings than might be available. If that looks positive we take it to the next stage where we do a very deep audit on their physical infrastructure, then
AUSTRALIA & ASIA
provide them with a detailed costing and economic impact model.� This is submitted in two forms, he explains, one funded by the customer, one by UASG. The latter is the build, own, operate, transfer (BOOT) model, which many readers will be familiar with applied to construction and civil engineering. It has not, however, been much used
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UASG/AES (SPOTLESS GROUP)
for critical infrastructure upgrades, and hardly ever before as a tool to drive down energy costs. Energy performance contracting is, then an innovative way to proceed. “We are finding that many customers today want to do these upgrades but don’t have the technical know-how or the capital to do it,” says Stephen Ellich. “When we talk to them they are often really surprised at the savings they can make by taking a more holistic view of their critical infrastructure and the amount of energy that can be saved by making use of solar, gas micro-turbines or cogen/trigen plants and by putting in more energy efficient equipment like LED lighting. When these things are done at scale, by an organisation with the engineering expertise to make them all work together, for example in large shopping centre the savings are very significant.” This is a very opportune time for UASG/AES, he declares with
AUSTRALIA & ASIA
conviction. Substantial reforms to the national electricity market are underway in 2017 following recommendations to the state and federal governments by the AEMC’s Power of Choice review which allows consumers to make informed choices about the way they use electricity. Ultimately, consumers will be in the best position to decide what works for them. “Ownership of the metering infrastructure changes. We will see a power shift from the distributor-led to a more retail-led business as the retailers become more hands-on with infrastructure rather than simply differentiating themselves on tariffs.” As one of the largest metering companies in Australia, UASG can partner these organisation in this industry transformation. Coming together under Spotless enabled the UASG entities and later AES to move their back office systems onto the parent group’s
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CASE STUDY
Technology that has helped us save time and run operations more efficiently
UASG/AES (SPOTLESS GROUP)
SAP infrastructure, and upgrade to its cloud-based systems, changing the business from a paper-based to a fully electronic operation. This was a painless enough migration thanks to Spotless’s top to bottom training – and it resulted, he says, in a better governed, more compliant and structured business. Charting the way forward Most of the work within the UASG
AUSTRALIA & ASIA
group is carried out using its own resources and personnel. Ellich likes it that way, because it makes for a close engagement with the customer both at grass roots and management level, so only around 30 percent of projects are reliant on subcontractors. The exception to that is Skilltech, the company that installs 100,000 meters a year and reads them more than 70 million times, using its own staff almost
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UASG/AES (SPOTLESS GROUP)
AUSTRALIA & ASIA
exclusively. The company has installed more than 880,000 smart meters in Victoria and carries out a large network metering contracts throughout Australia. Metering is no longer a drudge for staff and customers alike, he stresses. His innovations and emerging markets team has created unique devices for saving and tracking water consumption called SmartPipe. With the backing of Spotless, UASG is developing a metering centric application called MIMTR, which is going to be able to provide all metering services from a single device under one system. “Our view of it is that it provides, uniquely, a contractor portal for field mobility and data acquisition. It provides a customer portal for the utility to get real time access to their data via an internet browser. Plus a consumer APP so if customers get an estimated reading, they can enter their own data and can put the right information direct into the utility’s system through our interface. Customers get frustrated when they receive estimated bills, but now they can enter their own data on a highly secure channel. From the utility’s point of view, sincethe
“We will see a power shift from the distributor-led to a more retailled business as the retailers become more hands-on with infrastructure” – Stephen Ellich, CEO of UASG & AES
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LA UASG/AES (SPOTLESS G R TOIUNP )A M E R I C A
Company Information NAME
UASG/AES (Spotless Group) INDUSTRY
Energy services HEADQUARTERS
Head Office, 549 St Kilda Road , Melbourne, Victoria, Australia FOUNDED
2014 EMPLOYEES
APP can authenticate the information that the consumer uploads, the ability to defraud is vastly reduced.� The business case for working with UASG is compelling, as energy costs rise and technology provides the means to limit these, however environmental awareness goes well beyond this thanks partly to Australia’s National Australian Built Environment Rating System (NABERS) which measures and compares the environmental efficiency of premises. The company has its own NABERS assessors to help clients achieve the highest standards of compliance.
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2,500 WEBSITE
www.uasg.com.au
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TREE expertise Asplundh New Zealand is the country’s leading vegetation management company, standing out from the crowd thanks to the backing of its global parent company Asplundh Tree Expert Written by: Patricia Carswell Produced by: Josef Smith
ASPLUNDH
O
ur nationwide vegetation management services include utility vegetation management; council, commercial and private arboriculture and horticultural services; grounds and turf maintenance; and land clearance. We are committed to providing professional, safe and cost effective integrated vegetation management solutions to our customers who range from local councils and power companies to private businesses and the public.
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Key people
We are a safety and quality driven company, certified to ISO9001 Quality, ISO14001 Environmental and AS/NZS4801 Occupational Health and Safety standards. Wielding a cutting device right next to a power line is just the sort of dangerous activity that calls for an experienced hand – and they don’t come more experienced than Asplundh New Zealand. It’s part of the US-based, family-owned Asplundh Tree Expert Co., which has been providing vegetation management since its founders started trimming trees away from power lines and telephone wires in Philadelphia in 1929. Asplundh has been providing a vegetation management services for New Zealand utilities for 27 years. This long pedigree doesn’t allow for any complacency, though. “It’s very competitive,” says Managing Director Kevin Burt. With 29 utility networks servicing only 4.5 million people, and some of the networks providing their own services in-house, Asplundh can’t rest on its laurels. “We have to be more than just a cutting company to our clients,” says Burt. To stand out from the crowd in such a competitive environment, it helps to have the backing of a global enterprise. “One of our USPs is the ability to deliver a higher level of capability,” w w w. a s p l u n d h . c o . n z
Kevin Burt MD
”Unfortunately we’ll never get to the point of removing the physical aspect of men and equipment needing to be in close proximity to the power line but over time, as the vegetation management regimes improve here in New Zealand, those tools and devices will have a much greater impact.” 63
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says Burt. “We have access to technology, we have access to systems and we have access to equipment which generally may not be cost effective for smaller operators or networks.” Equipment, that is, like the Jarraff and MiniJarraff – a fully insulated mechanical line-trimmer which allows the operators to remain on the ground or in a protective cabin, at a safe distance from the power line. The Jarraff makes the business of cutting trees next to power lines significantly safer. 64
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“Unfortunately we’ll never get to the point of removing the physical aspect of men and equipment needing to be in close proximity to the power line but over time, as the vegetation management regimes improve here in New Zealand, those tools and devices will have a much greater impact.” Investment in equipment like the Jarraff reflects Asplundh’s commitment to safety. “Safety first, no one gets hurt” is the company’s slogan and mission statement, and according to Burt they are not just empty words. w w w. a s p l u n d h . c o . n z
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ASPLUNDH “We work in an extremely high risk environment and everything I do as a managing director and everything I challenge our staff to deliver is very much driven by that [mission statement].” State-of-the-art equipment isn’t the sole answer to safety, of course; without good operators the best equipment, it is worthless. “We take the qualifications, skill and competency of our staff very, very seriously,” says Burt. “We empower them to be out there operating independently and we need to make sure they’re not only technically proficient in what they’re doing but trained in the soft skills to be able to make smart decisions on the ground.” Asplundh has its own warranting system for its staff and works with the industry to improve standards. “We’re about whole, industry-wide safety and actively participating in utility working groups to share that information,” says Burt. Small wonder, then, that when new health and safety legislation came in this year, Asplundh was barely affected. “We have a history and culture of exceeding the legislation, so for us it was a very easy transition.” What Burt has seen changing is the client’s role in setting and enforcing health and safety standards. “Our clients are stepping up. They are understanding their vital role in health and safety and understanding the first principle that we have to take reasonable steps to ensure any risk to our 66
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employees is mitigated. The thinking is changing for the positive, I believe.” Asplundh singles itself out further with a vegetation asset management system, known as VAMS, which Burt championed when he arrived at the company. A former officer in the military, and armed with a degree in IT, he asked himself how the business could add value in a tight market with agile competitors. “How do you do that when your main function is cutting trees next to power lines? Well, you get into the mindset of doing that smarter, sharper, safer. In our space that’s gaining vegetation intelligence and delivering a better outcome,” he says. “To reduce our client’s network vegetation risk and deliver industry leading productivity, we capture the vegetation and cutting data, and effectively analyse it to ensure our programs see us sending the right people to the right job for the right outcome at the right time.” VAMS allows the business to think strategically, looking ahead to a 5-10 or even longer cycle. “Vegetation is not going to go away,” says Burt. “We have to make sure we’re not thinking short term and just going around doing the same old thing year on year.” So successful has VAMS been that it is now being rolled out across the US. Burt is understandably gratified. “The satisfaction is driven primarily because of the skill and ability of w w w. a s p l u n d h . c o . n z
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my staff here in New Zealand who have been real leaders of the development, who have taken the time and effort to see the vision. It’s hard to test and trial and update while running business as usual, so system development is never a smooth process, but if people see the vision and the benefits that it can deliver they’ll push hard for it.” Utility vegetation management isn’t the only service Asplundh offers; over the years it has diversified. “To stay in a small marketplace we have to look at other revenue streams,” says Burt. A significant percentage of the business is open space management which includes services such as the maintenance of sports fields and parks, mowing, gardening and even burial and sexton services.
“To reduce our client’s network vegetation risk and deliver industry leading productivity, we capture the vegetation and cutting data, and effectively analyse it to ensure our programs see us sending the right people to the right job for the right outcome at the right time” – Kevin Burt, MD
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ASPLUNDH
Established 2001, Safety & Apparel offers businesses an alternative option to dealing with Multinational general supply companies for their safety and work apparel needs. We are the only 100% New Zealand owned national Safety Specialist. Our aim is simple - to offer quality internationally & nationally recognised products, at competitive prices, combined with personal service.
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As for the future of Asplundh New Zealand, the main aim is to continue with what they are doing, only better. “I think there’s strong benefit in focusing on what we’re currently doing and doing it better and delivering better value for money to our clients,” says Burt. Keeping pace with rapidly-changing technology is key to this. Burt is excited by the potential of LiDAR (light detecting and ranging) – laser scanning technology that is being introduced into vegetation management to capture vegetation data around distribution and transmission lines to identify areas with clearance issues. “When harnessed correctly it is a powerful tool,” he says. He foresees an increasingly collaborative approach to vegetation management, with an online portal where members of the public can report issues and learn about risks. “They can start to take ownership.” Whatever the technology may be, Burt is positive about the next few years. “I think the future looks bright,” he says. “It’s going to be exciting to evolve the business and see how the industry evolves over the next three to five years.”
w w w. a s p l u n d h . c o . n z
Company Information NAME
Asplundh INDUSTRY
Vegetation Management HEADQUARTERS
PO Box 14-501, Panmure, Auckland, 1741, Panmure, Auckland New Zealand, 1741 FOUNDED
1928 EMPLOYEES
250 WEBSITE
www.asplundh.co.nz
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RENEWABLE AND CONVENTIONA
ENERGY’S FULL CY
AES Mexico became the country’s first independent powe enabled to store clean energy
Written by: Mateo Rafael Tablado Produced by: Jassen Pintado
Interviewee: Juan Ignacio Rubiolo, President for AES México; and Miguel Lira, Director of Corporate Affairs fo
AL
YCLE
er producer and today is
or AES México
AES MÉXICO
I
n 1997, the AES Corporation decided to invest in its southern neighbors through its subsidiary, AES Mexico. Energy reforms in the country were hardly in development at the time and it seemed risky to invest in Mexico. However, AES became the first independent power producer to come to Mexico to win a bid.
AES Merida and its 505 MW deliver half the power used in the Yucatan peninsula
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A plant built in Merida, and two acquired in San Luis Potosi (SLP) have been bastions for more than 15 years, supplying electricity to the Federal Electricity Commission and clients such as Industrias Peñoles (mining) and Cementos Mexicanos (CEMEX). Peñoles belongs to the prominent BAL Group, active in the electricity sector with a thermoelectric station and a wind farm in the state of Oaxaca. AES Mexico partnered with the BAL Group since early 2016, creating the EnerAB company in order to develop conventional electrical energy and clean energy generation projects. They envision helping the federal government attain its goal of having 35 percent of the country’s total energy needs come from clean energy sources by 2024. “It is important to ensure that the market is developing as stipulated and that all participants fulfill their duty,” said Juan Ignacio Rubiolo, President of AES Mexico. Juan Ignacio Rubiolo has been running AES Mexico for just over a year. Rubiolo graduated with a degree in Business Science from Austral University in Argentina. He also holds a Master’s Degree in Project Management from the University of Quebec (Canada). His career at AES began in 2001. Having worked in the Dominican Republic, the Philippines and Panama, as well as in his homeland, Rubiolo has extensive experience regarding energy reforms.
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Key People
Juan Ignacio Rubiolo President of AES México Juan Ignacio Rubiolo graduated in Business Science at Austral University, in Argentina. He also holds a Master’s Degree in Project Management from the University of Quebec (Canada). His career at AES began in 2001. Having worked in the Dominican Republic, the Philippines and Panama, as well as in his homeland, Rubiolo has extensive experience regarding energy reforms, as he worked in each of these countries when reforms were taking place.
AES MÉXICO
Bastions of power AES Mexico’s assets are located in Tamuin, SLP, where the Termoeléctrica del Golfo (TEG) and the Termoeléctrica Peñoles (TEP) power plants are located; as well as in the state capital of Yucatan that features the AES Mérida III power plant. AES Mérida III was launched in 1999. It provides the Federal Energy Commission (CFE) with 484
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MW, almost half of the total electric power used throughout the Yucatan Peninsula. In 2015, the plant was awarded the “Environmental Excellence” Award by the Federal Attorney for Environmental Protection (PROFEPA). AES Tamuin plants, both the TEG and the TEP, each provide 250 MW, supplying CEMEX and Peñoles Industries. These plants started to be built in 2000 and 2001 respectively.
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Key People
Miguel Lira Director of Corporate Affairs for AES México Lira graduated in Communication and Media Studies at Saint Mary’s College of California; afterwards, he earned a Master’s in Public Image Engineering, from the Public Image Consultants College. He worked previously in the automotive industry as Corporate Communications Director for Nissan Mexico, for the Alestra telco, as well as for Motorla and MaserCard. He was hired by AES Mexico in February 2015.
AES MÉXICO
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The San Luis Potosi Cluster This AES location is ideal; especially considering the potential business developments given Mexico’s energy reform, as well as the company established with the BAL Group. The State of SLP and its capital are within a few hundred kilometers from the US border and are just north of the Bajio region, an important cluster boasting a diverse range of industries. Nearby is Monterrey, the country’s industrial capital. Ongoing SLP development implies the need for a broad network of providers for companies operating this region, which includes brands such as Goodyear and Ford. Lithium-Ion Batteries One of AES’ global advantages is the new energy storage resource based on lithium-ion batteries capable of storing energy generated, to be released when needed. The main advantage of this resource is to provide greater stability to the network. This resource enables power supplied to
Environmental Excellence award, obtained by the AES Merida III plant from the Federal Attorney’s Office for Environmental Protecion (PROFEPA)
“It’s important to make sure the market’s development happens according to the established regulations” – Juan Ignacio Rubiolo, President of AES México
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AES MÉXICO
AES Mexico’s facilities and operations are carried under global standards and the sector’s best practices
AES Mexico’s staff is comprised by professionals from
an entire region, to be regulated via a network. “This technology is here to stay at a global level. It is increasingly accepted and even required by system operators,” said Rubiolo. Mexico plans on taking advantage of renewable energy growth to get the most out of this resource; now available with more than 130 MW operating in the US, Chile, the UK, the Netherlands, Philippines and India.
different countries, depending on each operation’s specific requirements
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Strict Supplier Management AES meets global standards when dealing with suppliers. Providers are strictly evaluated and certified. Each branch is supported by a global purchasing team and regional teams that qualify
L AT I N A M E R I C A
Staff at AES Mexico’s plants in Tamuin, San Luis Potosi
and certify suppliers, establishing global alliances with the group’s strategic partners. In-house Training AES actively uses its human resources, giving hands-on training in real-life settings. Specialized outside training and postgraduate programs that cater to requirements and career plans within the company are also available. “Part of AES’s DNA is to have the staff needed and train them in-house,” said Rubiolo. CSR AES Mexico is transitioning from making monetary donations to making much greater
“The best practices are applied with every resource without exception; we are able to face any event with our worldclass expertise, technology and experience” – Juan Ignacio Rubiolo, President of AES México
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AES MÉXICO
San Luis Potosi is becoming an important industrial cluster. AES Mexico is there to make t
AES Mexico is becoming an ideal partner for the country’s development through recent energy reforms 82
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contributions. It looks to make a lasting positive impact, together with the community, which includes initiatives launched by similar companies. “We are working to be socially responsible. For example, ensuring operational efficiency that has a social and economic impact for those living near our plants,” said Miguel Lira, Mexico AES’s Director of Corporate Affairs.
L AT I N A M E R I C A
the most from every opportunity
The most important CSR programs for AES Mexico are: •
The POETA Center (programs that create opportunities via technology in the American States), in partnership with Trust of the Americas. The program gives young people the relevant technological skills and training needed in order to work for companies w w w. a e s m e x . c o m
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AES MÉXICO
L AT I N A M E R I C A
similar to AES, such as CEMEX and GUSI Group (a meat packing company), among others.
Company Infromation NAME
AES México
• A sports walkway that includes a bicycle path and running track in the Tamuin area. Projections The alliance with Grupo BAL involves developing a portfolio that generates 2500 MW, including 20-30 percent in renewable energy. To meet this challenge US $2.5 billion will be invested. These next few years will see an increase in renewable energy generation, especially wind energy, and an increase in the use of natural gas.
INDUSTRY
Latin America HEADQUARTER
Av. Paseo de las Palmas 405, 6o piso Lomas de Chapultepec, México, CDMX, México, 11000 FOUNDED
1997 EMPLOYEES
200 WEBSITE
www.aesmex.com
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Tiger blood for industrial infrastructure The Oil & gas sector’s ally Tiger Companies broadens its reach to service new industries, rechristened as Summum, with operations in Colombia, Mexico and Peru Written by: Mateo Rafael Tablado Produced by: Jassen Pintado Interviewee: Daniel Lucio, CEO for Summum
SUMMUM
S During 2016, conditions have been set so that Summum’s three divisions operate simultaneously in Colombia, Peru and Mexico
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ummum is the new identity of Colombia’s Tiger Companies, whose business units have been a part of Colombia, Mexico and Peru’s most important energy infrastructure projects. Summum is composed of three divisions:
L AT I N A M E R I C A
•
Summum Energy (formerly PetroTiger). This company has built a strong reputation in the oilfield services industry. Though mainly catering to the upstream industry (crude oil and gas production), it recently expanded beyond the oil sector.
Key People
Daniel Lucio CEO for Summum Daniel Lucio is a lawyer, a graduate from the University of La Sabana (Bogota) with a postgraduate degree in recruitment from Del Rosario University. Lucio began at Avianca, Colombia’s premiere airline; then moved on to work for a major law firm between 2002 and 2009. Shortly thereafter he joined Tiger Companies’ as Vice-President for Legal Affairs and CSR. In August 2014, he was promoted to Executive Vice President. Mr. Lucio has served as CEO of Tiger Companies (renamed Summum in June 2016) since April 2015.
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SUMMUM •
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Summum Projects (formerly Tiger Engineering). Division responsible for energy engineering projects.
•
Now an industry leader, Gómez, Cajiao and Associates S.A.’s solid reputation is cemented thanks to years of unrivaled successes in engineering, supervision and project management, including major port infrastructure projects.
L AT I N A M E R I C A
Tiger Companies became Summum during mid-June, 2016. “We are leading the company in a new direction, delving into new sectors via a new brand where we are consolidating the three divisions,” said Daniel Lucio, Summum’s CEO. Daniel Lucio is a lawyer, a graduate from the University of La Sabana (Bogota) with a postgraduate degree in recruitment from Del Rosario University. Lucio began at Avianca then
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SUMMUM
Summum’s EPC expertise is also present in the agricultural and industrial sectors
The infrastructure engineering division, developed through Gomez, Cajiao and Assoc., has gained considerable importance in the area of port infrastructure
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moved on to work for a major law firm between 2002 and 2009. He shortly thereafter became Tiger Companies’ Vice-President, Legal and CSR. In August 2014, he was promoted to Executive Vice President. Mr. Lucio has served as CEO of Tiger Companies (renamed Summum in May 2016) since April 2015. Operational adaptability Summum’s three divisions each stand out on their own according to their specialty. Summum Energy, for example, managed to position itself (as PetroTiger) among Colombia’s five largest oil service companies after becoming part of Tiger Companies and doubling its turnover from about 2011.
L AT I N A M E R I C A
Throughout its history, Gómez Cajiao has helmed transport-related projects (railways, roads, bridges, airports and concessions), and has distinguished itself for its involvement in hydroelectric plants, ports and mining infrastructure projects. Summum companies are also involved in energy projects, particularly in cogeneration and transmission. Summum Energy is now expanding its scope beyond the oil sector. For two years now, this division has identified services that are also useful in other industries. Operation and maintenance services and EPC (engineering, procurement and construction) projects have been key to designing a strategy in order to reach out to other sectors. These efforts are yielding results today.
Summum offers tools and technology for realtime monitoring of plants and various assets.
“One of our main goals is to operate simultaneously in Colombia, Mexico and Peru” – Daniel Lucio, CEO for Summum
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SUMMUM
Contributing to energy and fuel infrastructure translates into direct action, promoting economic growth in the region
Summum inherits Tiger Companies’ paramount role in operational aspects, HSEQ and business ethics
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These services have already successfully been brought to the agroindustrial and the gas sectors. Among these projects is a gas compression station in Colombia. The contract was obtained in 2014 and is currently progressing according to plan. It will be completed and running within the scheduled time; much to the delight of the client. Moreover, work has already begun on various aspects of a second-generation ethanol plant also in Colombia, with an estimated production capacity of 66,000 gallons per day. Construction is slated to begin during the first quarter of 2017.
L AT I N A M E R I C A
PetroTiger is now called Summum Energy
Growing abroad The corporation is developing activities in other countries: Mexico, Peru and Spain. Summum Projects provides continuity to the already consolidated operations Tiger Engineering has been developing in Mexico since 2010. Today, US$30 million a year in engineering services is positioned on Mexican soil, whose client list boasts PEMEX. Likewise in Peru and since 2010, Tiger Companies has been part of the management team charged with the modernization of the Talara
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Summum professionals share their knowledge and experience through inhouse training
It has been forecasted that growth achieved
refinery, owned by PetroPeru. “It’s one of the most important contracts we have. Work has progressed steadily and enabled us to keep the project on schedule, without deviation,” stated the executive.
during 2017 will result in sustainable activities
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Exclusive monitoring technology Summum Energy uses Canadian technology for real-time operations monitoring and asset management. Initially, this system –which Summum handles exclusively in some Latin American countries— is able to monitor oil wells and other critical equipment in different industrial activities. This equipment provides data for determining ideal maintenance schedules. The customer has access to this
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information via mobile devices such as cell phones. For administrative tasks, Summum uses an SAP system with tailor-made modules. A demanding program for suppliers All Summum providers are subject to stringent assessments and filters where it is certified that in addition to operational accreditation, these companies also comply with the laws, good and ethical business practices and other criteria for compliance. “We seek to develop suppliers in the regions where we operate. All providers must go through a fairly stringent compliance process,� said Mr. Lucio.
Summum inherits Tiger Companies’ efforts in HSEQ
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A Gómez Cajiao project, in Tolima
Internal efficiencies When it comes to training efforts, Summum works both externally and internally, making sure that department experts prepare courses for the entire company on a regular basis so that every member of each department is on top of their game. In-house training sessions have yielded excellent results as well, and have proven to be a superb use of resources. “We have enjoyed having internal talent provide the training and the results have been good. People have shown interest. It has been a great tool for professional growth,” said the executive. Summum is also revered for its Health, Safety,
Somos una compañía de construcción y montaje metalmecánicos, estructuras, oleoductos, gasoductos, polioductos, obras civiles eléctricas, instrumentación e ingeniería. acosta@acostasas.com gerencia@acostasas.com www.acostasas.com
Acosta & Acosta O NS T U
IO ES S.A.S.
Somos una Empresa que Genera Valor
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Environment and Quality (HSEQ) standards; carried out by each of its employees in all divisions. They are also renowned by various agencies and clients because of positive ratings accumulated in this regard. Planning Based on New Operations Abroad Summum has a very clear understanding of the current market. Adapting existing skills and services once intended for the oil market for new sectors is successfully contributing to their shortterm progress. Another goal is ensuring Summum’s three divisions are involved in the three countries where they currently operate. These advances and increased market reach offer a more than positive outlook for 2017; the year in which is expected a growth between 20 and 30 percent. “Our goal is to see a growth based on the realities spanning the markets, margins that allow us to have a self-sustaining and lasting business,” concluded Daniel Lucio.
Company Information NAME
Summum INDUSTRY
Infrastructure services for oil, energy, and industry HEADQUARTERS
Carrera 19 Nº 166 - 53 Oficina Principal , Bogotá, Bogotá, Colombia FOUNDED
1968 (Inelectra); since 2016 as Summum EMPLOYEES
1,000 REVENUE
US$200 million WEBSITE
www.tiger-cos.com
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Right first time
An innovative approach has helped Delta Group to become the largest demolition company in the southern hemisphere
Written by: Jackie Cosh Produced by: Tom Venturo
D E LTA G R O U P
D
elta Group clients have unique challenges that need to be solved safely, quickly and at a price that represents value for money. Delta Group excels at creating innovative solutions that safely accelerate project schedules while enhancing the quality of result and reducing cost. Clients benefit from our vertically integrated business model that delivers a ‘one stop shop’, which in turn adds certainty and value to construction projects of all sizes. More than 30 years of experience enables us to advise on the best methodology to provide a solution to your particular challenge. Our ‘Right 1st Time’ behavioural health and safety programme has given Delta Group an unparalleled safety record. Our unwavering commitment to quality through our ‘Delta Way’ triple certified integrated management system allows our clients to sleep easy knowing we are actively managing all risks.
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Our collaborative approach embedded in our Early Contractor Involvement (ECI) model means we can better understand our clients’ problems and better contribute to a solution that delivers real and meaningful value. This teamwork ethos, our ability to create and implement innovative solutions, together with our ‘we will never let you down’ definition of integrity has made us Australia’s largest demolition company. Innovation is an integral part of any successful company’s ethos and key to building up long term relationships with clients. For Delta Group, the largest demolition company in the southern hemisphere, all projects are undertaken with the view that being ahead of the game can potentially be the start of a long term relationship. “We don’t undertake projects with a view of only working with a client once, we undertake them to kick off a relationship and move forward with them,” says Anthony Papalia, Western Australian Projects
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Key people Anthony Papalia WA Projects Manager Papalia heads the WA Projects Team overseeing Projects Delivery, Engineering and Quality, Safety & Environment. He has strong Commercial and Mining Industry knowledge in the fields of Demolition, Civil, Remediation, Rehabilitation, Hazardous Material Removal and Temporary Supports & Induced Collapse Engineering. Papalia has built relationships with Clients, Suppliers, Local Communities and State Legislative & Building Governing Authorities. These relationships aid Anthony’s ability to communicate and lead the delivery of Projects on time and on budget with a strong safety & sustainability focus.
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Manager. “We envisage that we will be able to work with that client time and time again and to continue to prove them right, that we are the best company in the business.” Although job to job dependent with innovation led through a strong safety and sustainability focus, each state has its own safety advisors and coordinators, and a national safety manager who oversees safety and the ‘Right 1st Time’ programme countrywide. The philosophy behind this behavioural safety programme is about being able to recognise and understand hazards 104
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and potential issues, then identifying the correct control measures to be put in place to ensure that any work undertaken is – right first time. “The project execution team sits down, brainstorms together and devises a methodology, from there we bring in third party engineers, who we get to prove that what we have internally designed is going to work. Through engineering and 3D modelling they verify that our methods are appropriate, giving peace of mind to all stakeholders,� says Papalia. Papalia highlights Deltas methods as w w w. d e l t a g r o u p . c o m . a u
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“It is also a bit of an
addictive industry to be in. You never
get to demolish the same building
twice. So it keeps
you on your toes, keeps it interesting
and challenging”
being innovative in the way they develop their methodologies, programmes and equipment for their projects. They manage their own projects and generally don’t need a third party management team between them and the clients, meaning that they work directly with the clients as principal contractor. This, says Papalia, is a method that works well. “We generally engineer our projects to be the safest, the most practical, and the most viable options. Clients will give us a scope of work that may or may not include a methodology in it. We will put in a bid that allows them to see alternate options that can be undertaken that will best suit the outcome they are trying to achieve,” he says. Undoubtedly cost savings are important for clients, and Delta prides itself in being able to identify these, aided in part by the ability to selfmanage projects, but also by the fact that they are set up in many ways as a one stop shop, that can offer their clients turnkey solutions. As well as having multiple specialist divisions that complement their demolition business including hazardous removal, remediation, civil construction, rehabilitation, concrete crushing, recycling and rent they also have over 900 pieces of plant, and are able to do work both onshore and offshore. Sustainability has grown in importance, or as Papalia describes it “being able to do more with
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less”. In addition, as the world strives to become more environmentally friendly waste strategy is moving forward as well and is playing a bigger part in planning. “We need to diversify with waste initiatives, maximizing diversion from landfills,” explains Papalia. Remediation is followed by rehabilitation, working with clients at all stages to manage the project in the best way. Papalia gives an example of how a typical project may be delivered. “Whether it’s a mining or construction based project we can remove hazardous materials, do the demolition, then either remediate and rehabilitate the site or undertake the civil construction requirements of the build package to follow.” The company was started in 1974 in Victoria, by Con Petropoulos, and is today still a family owned company. He started the company predominantly as a demolition company and then grew it into a demolition and civil works company, moving it across the east coast, and then nationally.
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“Our people have good and gain a good, well ro of the construction 108
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d opportunities to grow ounded understanding and mining game� w w w. d e l t a g ro u p . c o m . a u
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Today it has approximately 600 employees and its client base is major construction companies across the country and major world-class miners. The group is made up of multiple divisions and subsidiary companies; CMA Contracting, Whelan the Wrecker, Delta Mallard, Streetscapes and Whelan the Warehouse. Recent highlights have included undertaking the world’s largest steel stack felling demolition and being runner up in the World Demolition Awards in November in Amsterdam, which Delta was shortlisted for its BHP Billiton Tertiary Crushing Building 02 and Transfer Station 204 Project. Papalia has been with the company for more than six years. Having come in as a purchasing manager, he quickly moved into safety, working on the quality, safety and environment side of the company in Western Australia. As the company grew so did his remit moving him into project management and now he heads the WA Projects Team. With a good training regime and continuous development of employees, Delta goes out of its way to attract and retain staff, keeping them up-to-date, either with in-house tailored training, or externally via registered training centres and colleges. There are pros and cons to working in demolition. “It is quite a bit different w w w. d e l t a g r o u p . c o m . a u
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LEADING SOLUTIONS IN MINING AND MINERALS Tetra Tech Proteus is a leading provider of engineering services to the resources and energy sectors of Australia and Asia. Key strengths are Study, Design and EPCM or EPC project execution services across a wide range of commodities. Extensive experience in demolition design includes mine plants, oil & gas, industrial, infrastructure and explosive felling. Engineering support identifies the most suitable demolition methods.
t: +61 8 63133200 e: proteus@tetratech.com
www.proteusgroup.com.au
CONSTRUCTION
from other areas of the construction field,” says Papalia. “So that in itself can be a challenge in finding people who are able to understand the demolition industry. We do definitely have a high retention rate, purely for the reason that once they get to experience and understand the complexity of the industry we like to keep them and keep them growing within the company. It is also a bit of an addictive industry to be in. You never get to demolish the same building twice. So it keeps you on your toes, keeps it interesting and challenging.” “Our people have good opportunities to grow and gain a good, well rounded understanding of the construction and mining game. Our versatility means we are very well set up to cover multiple sectors, so it becomes about continuous improvement and development for our people.” Citing the core values of safety, integrity, teamwork and excellence, Papalia is confident that these are at the heart of the business. He says, “We make safety and sustainability the primary considerations in decision making. We want to have integrity in what we do, and in doing what we say we are going to do. One team, one goal with open communication from the ground up. Always looking at new and better ways of doing things, creating solutions. This allows for a successful project delivery that exceeds client expectations building ongoing relationships with them.”
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Company Information NAME
Delta Group INDUSTRY
Construction HEADQUARTERS
577 Plummer Street, Port Melbourne, Victoria, Australia, VIC 3207 FOUNDED
1974 EMPLOYEES
600 WEBSITE
www.deltagroup.com.au
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CUSTOMIZED
ENERGY With expansion projects, the Brazilian unit is preparing to meet the growth potential in the coming years
Written by: Flรกvia Brancato Produced by: Taybele Piven
AGGREKO
W
orld leader in providing temporary power solutions, cooling process and air conditioning, Aggreko was founded in 1962 in the Netherlands. More than 50 years ago it established itself in the global market and is present in over 100 countries. Currently, the global fleet of Aggreko generators includes a 20 thousand piece equipment powered both by diesel and natural gas, with potencies from 15 to 1500 kVA, in addition to providing multi-megawatts of 1 MW generating plants to over 200 MW. Furthermore, the company has the world’s largest fleet of energy generators in containers, with the global total amount of about 9,100 MW - the equivalent to half Itaipu’s power. Aggreko in Brazil Focusing on the offshore market, Aggreko started its activities in Brazil in 2003, more precisely in the city of Macae, Rio de Janeiro state. This location is also known as the National Petroleum Capital. Since then, the company offers customized and cost-effective solutions to meet various industries ranging from pulp and paper, oil and gas, mining and even events. Through a group of skilled, experienced professionals to design temporary solutions specifically to meet the specific needs of each client, Aggreko units in Brazil provide solutions for events of any size. Projects customized with 116
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highly specialized equipment and technical support teams to ensure uninterrupted power supply. Pablo Varela, head of sales and marketing of Aggreko for Latin America, said that it is noteworthy that Brazil is a growing market. “There are still many sectors in expansion in Brazil and Aggreko that can be a strategic partner in all stages of upcoming growth,” he says. According to Varela, the greatest potential for development in the next years is in the segments of oil and gas, pulp and paper, food & beverage, alcohol and sugar, chemical and pharmaceutical, petrochemical refineries and facilities. “Because we offer power and modular temperature control and mobile solutions, we have the ability to meet the specific needs of companies in these sectors in a customized manner and throughout different phases,” he adds. Market Activity Aggreko leads the temporary power supply in the oil & gas segment. Among the applications for the sector are efficient solutions for operations in upstream and downstream activities, such as generators rental for the supply of reliable power for deckmating platforms, power generation on board production units, storage and transshipment (FPSO), and scheduled or emergency interruptions. “The company also operates in the supply of load banks for testing in generation systems w w w. a g g re k o . c o m
Key People
Pablo Varela head of sales and marketing of Aggreko for Latin America As Head of Sales and Marketing of Aggreko for Latin America, Pablo Varela is responsible for managing the business and local operation of Aggreko in all of the company’s operating countries in Latin America. Pablo began his career in Aggreko in 2002 as Sales Engineer for the South American region. He also served in Chile as Sales Manager and later took over the general management in that country. Prior to his experience with Aggreko, Pablo served as CIEMSA’s Project Engineer in Uruguay. He holds an industrial engineering degree and an MBA from ESE Institute in Chile. Born in Uruguay, Pablo is fluent in Spanish, Portuguese and English.
AGGREKO
“There are still many sectors in expansion in Brazil and Aggreko that can be a strategic partner in all stages of upcoming growth” – Pablo Varela, head of sales and marketing of Aggreko for Latin America
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such as turbines and generators. The service is essential for the commissioning of platforms in that it ensures that the power generating turbines are in proper functioning condition before the start of its operation, preventing shut downs for any problems and interruptions, so the process remain productive� says Varela. When it comes to cooling processes, with over 1200 MW available, the application in turbogenerators for power supply stands out, aimed at increasing efficiency. It is also aimed at improving performance of the equipment and, consequently, of operations. The air conditioning solutions of the company are often used in service segments, events and entertainment, such as 120
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shopping centers, malls, fairs, shows and major sporting cultural events. Through 211 service centers, Aggreko serves customers who need efficient supplies for short or indefinite period of time. In these locations, the company provides what it calls Local Business— which accounts for about half of the group’s revenue, the company provides equipment for the operation of customers and is responsible for maintenance services. “In the Large Projects sector, which accounts for about half of our revenue, we operate as energy providers. We install and operate temporary plant energy and charge our customers for providing the generating capacity and the energy produced,” says the director. Events and Entertainment The company has also extensive experience in the events and entertainment market, offering creative and reliable solutions for any type of project. Among the success stories in this industry, five World Cups, 12 editions of the Olympic Games, filmmaking in Hollywood, presidential inaugurations, tours and major music festivals all stand out. Among the latest customers are the FIFA World Cup Brazil 2014, the XX Commonwealth Games, world tours of Cirque du Soleil and power concessions in over 50 countries, including the UK, France, Ivory Coast, Mozambique , Indonesia, Bangladesh, Argentina, Venezuela, Chile and the United States. w w w. a g g re k o . c o m
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Componentes Elétricos
15 years improving efficiency and productivity for our clients. Rua Laguna, 364 - Santo Amaro - São Paulo - SP CEP: 04728-001 Tel: 55 11 2870-1000 / 55 11 5645-0800 www.apscomponentes.com.br
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“Orange Excellence” Facing the constant development of its operational area, the internal program Orange Excellence aims at generating employee recognition of the importance of continuous improvement, promoting education and training of these employees; developing and enabling tools and working methods, developing improvement projects and solving challenges, among others. To Aggreko, the program is a priority in business and has the participation of all the company’s managers. “According to the plan, each activity performed by the company is seen as a process that can be improved by sharing of best practices; understanding that the waste must be identified and eliminated; scientific and sustained resolution of challenges; and the empowerment and mobilization of teams to solve problems,” says Varela. Expansion plans For 2016, the company’s goal is to strengthen its presence in the cities with key markets: Industries, oil and gas, mining, services and events. “In the area of Large Projects in Brazil, we are increasing the installed fleet and to the Local Business sector, the company has a running growth plans to expand the fleet of air conditioning and cooling processes,” adds Varela.
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Company Information NAME
Aggreko INDUSTRY
Energy HEADQUARTERS
Glasgow, Scotland FOUNDED
1962 MEMBERS
7,300 REVENUE
USD $2,08 billion WEBSITE
www.aggreko.com
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across instead of around electric.volvobuses.com
The Volvo 7900 Electric is so much more than a clean and emission-free bus. It represents a new way of developing public transport. With silent and emissionfree vehicles you can build bus stops where people really want them. And let the buses tip-toe through sensitive areas – even when people are asleep. Introducing electric buses is simple. The Volvo 7900 Electric comes as a turn-key solution where you pay a specified cost per kilometre, but only for the capacity you need. Bringing reduced risk and increased financial benefits for your city. Welcome to explore the new possibilities and see what the Volvo environmental effect means for your city.
Introducing the new
VOLVO 7900 ELECTRIC
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