OCTOBER 2015
more than business
www.totalworldenergy.com
A duty to care This month, Total World Energy speaks with Richard Holcroft, General Manager at Saldanha Bay Works. Part of the ArcelorMittal SA Group, it boasts a sterling reputation for implementing highly effective energy initiatives and maintaining environmental awareness something Holcroft attributes to the plant’s stringent duty to care policy.
Gemini Wind Farm 600MW offshore wind farm
Ceylon
Sri Lanka’s largest electricity company
Valentine Maritime Expansion into the fabrication market
Triyards Holdings
‘Strong fabrication and engineering expertise’
Standing as the only steel mill in the world to combine the Corex and Midrex process into a continuous chain - helping to eliminate the requirement of blast furnaces and coke ovens - places Saldanha Works - part of ArcelorMittal SA - in an invaluable position to be a world leader in environmental management and emission control. With greenhouse emissions at an all-time high across the globe, serious and detrimental statistics are highly documented in the media on a regular basis. But amid the severity and concerns of this information, the positive news of successful environmental initiatives and ways in which to curb these carbon emissions are now being implemented. Intent on reducing its environmental impact, it was reported in 2012 that Saldanha Works saved an estimated R127 million as a result of the R21 million spent on energy saving initiatives it introduced in 2011 and with the introduction of a world-class manufacturing program, this helped to optimise the plant’s energy management program, placing it comfortably at the forefront of ArcelorMittal SA’s lowest-cost producers in 2014. General Manager, Richard Holcroft explains: “We have an environmental manager and a team whose objective is to keep us honest and to ensure that each and every one of us understands that we have a duty to care for the environment. You rely heavily on the thinking and actions of your workforce and that’s really education and training and making sure they understand their responsibility as regards our duty to care for the environment.” It is this ‘duty to care’ which we see in so many companies striving to reduce the environmental impact they have in an attempt to become more energy efficient. And while there are many challenges to face in combatting one of our biggest global issues – it is of course finding that equilibrium between a successful and sustainable business which is so important. How is your company implementing energy efficient initiatives? Get in touch with us: @TWEmagazine
Harriet Pattison editor@ecp-ltd.com
EDITOR Harriet Pattison SUB-EDITOR Ajuanne Payne WRITERS Rosie DeWinter Colin Chinery Abigail Saltmarsh Annabelle Withering Johnny Falconé Louise Defoe
STUDIO DIRECTOR Martyn Oakley DESIGNER Harvey Tarlton SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Mark Leonard
ACCOUNTS Mike Molloy MANAGING DIRECTOR David Hodgson FINANCE DIRECTOR Scott Warman
2a Ardney Rise, Norwich, Norfolk, NR3 3QH, United Kingdom If you would like more information about ways in which Total World Energy can promote your business please call +44 1603 411616 or email | editor@ecp-ltd.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © East Coast Promotions Ltd 2015
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Contents EDITOR’S PAGE
3
NEWS
6
Sustainability in the steel industry
All that’s happening in the energy industry
ARCELORMITTAL SA
14
TRIYARDS HOLDINGS
22
INTEROIL
30
CEYLON ELECTRICITY BOARD
38
TENNET
44
VALENTINE MARITIME
50
SWIRE PACIFIC OFFSHORE
54
ELIA
58
GEMINI WIND FARM
62
ENTREPRENEUR
66
GADGET BOX
68
INNOVATION
70
Reducing environmental impact
Leading the SEU market
Gigantic gas reserves in PNG
Lighting up your future
Taking power further
Fabrication expansion
Celebrating 40 years
Powering a world in progress
A project of firsts
Jeremy Leggett: Founder of Solarcentury
The WalkCar
The world’s first vertical take-off plane
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CONTENTS
26
54
70
50
38
22 PAGE 5
# twenews ABB awarded $90 million Johan Sverdrup power contract Sweden’s ABB has won a US$90 million contract to supply a two-cable highvoltage system to power, from shore, for Statoil’s Johan Sverdrup field. The move paves the way for the entire Johan Sverdrup field to be powered from shore, as well as other fields on Norway’s Utsira High, in the Norwegian sector of the North Sea, west of Stavanger. Supplying electric power from shore for offshore oil and gas production avoids the need to burn diesel or gas out at sea to power the equipment and machinery on the platforms, resulting in substantial reductions in CO2 and nitrogen oxide emissions. In addition, the cable solution is safer and more energy-efficient than generating the power offshore using fossil fuels, according to ABB. The two, 200km-long cables, designed to supply 100MW at 80kV, as well as fiber optics for communications, will cover the power needed for the first phase of the Johan Sverdrup field development, due on stream in 2019. ABB’s contract also covers options for delivering high-voltage cables from shore to the Johan Sverdrup field to meet the
power requirement of a full development of the Johan Sverdrup field as well as the Edvard Grieg, Ivar Aasen and Gina Krog fields on the Utsira High. The Johan Sverdrup is on the Utsira High, 155km west of Stavanger, and is one of the five biggest oil fields on the Norwegian continental shelf. The field is approximately 1900m deep, in 110120m water depth, and covers about 200sq km. Statoil says that as of 2015, investment costs for full field development are estimated to be in the region of $22.328.9 billion, with recoverable resources of between 1.7 and 3.0 billion boe. According to Wood Mackenzie’s report titled ‘Statoil FID on oil price defying giant– Norway’s Johan Sverdrup’ the field will cost $31 billion to develop and will produce 600,000 boe/d at its peak. Last month, the development’s predrilling template was installed, the project was also given official project section by Norwegian authorities and the unitization agreement was signed. The power cables will be fabricated at ABB’s plant in Karlskrona, the high-voltage cables will be laid from
Haugsneset in Tysvær municipality north of Stavanger to the Johan Sverdrup field center on the Utsira High. The power cables will then be pulled up to the riser platform at the Johan Sverdrup field center. The cables will be buried into the seabed or covered by rocks, as required. In March, ABB was awarded an order to supply the two High Voltage Direct Current (HVDC) converter stations for the same project. One will be located onshore at Haugsneset, where it will turn alternating current (AC) from the grid into DC, which can be transmitted efficiently over 200 km to the second station which is on one of the oil platforms. There, the DC current will be converted back into AC and distributed to the rest of the field. The first phase of the Johan Sverdrup field development includes all the preparations needed for land-based power supply for a full Johan Sverdrup development as well as other fields on the Utsira High by 2022. The Johan Sverdrup field partners are: Statoil 40.0267% (operator), Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.
© Statoil
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NEWS
vortex energy and Max Bögl to build 25MW wind farm in Poland
In the heart of Poland new GE-made wind turbines with a capacity of 25.3 MW will probably be commissioned at the end of 2015 and will then produce an anticipated annual yield of more than 66 GWh to supply 20,000 homes with electricity from renewables. This will save about 22,000 tonnes of CO2. The wind farm project is being realised in a collaborative venture between the groups vortex energy and Max Bögl with its head office in the Bavarian municipality of Sengenthal. Adam Pantkowski, who is responsible for the Polish development business at vortex energy, says: “We are very pleased about the successful collaboration with Max Bögl. With Jóźwin
has been completed. The work on assembling the turbines has already begun and will probably be finished at the end of September. Under contract to the joint operating company Future Energy Sp. z. o.o., vortex energy will erect a 15kV/110 kV substation and therefore connect the wind farm to the 110 kV high-voltage grid. Together with the grid operator Energa Operator the target date for the infeed is the end of 2015. This former mining area is attractive on account of the wind conditions there, but because of the difficult soil conditions the engineers were faced with special requirements regarding the foundations.
construction readiness. The wind farm has been created in partnership with the construction company Max Bögl. After commissioning, vortex energy will be responsible for the operational management. For the first time the new electricity trading and balancing divisions will play a role in this project. Dr. Till Jeske, the vortex energy Group’s CEO, said of the development forecast for Poland: “Poland has a considerable wind potential and proved at an early stage to be suitable for investments in wind energy thanks to favourable funding arrangements. Since 2006 we have been working actively at the front and have observed an
we are expanding our Polish wind business further.” The wind farm covers the two local communities of Kleczew (8 turbines of the type GE2.85) and Ślesin (1 turbine of the type GE2.5). The construction work on the access roads and foundations
Thanks to appropriate soil improvement measures it has been possible to create the necessary load-bearing capacity of the subsoil as planned and on schedule. vortex energy is once again showing itself to be a wind energy all-rounder. The team developed this acquired up to
enormous growth in this country’s wind energy capacity. Since this time it has experienced a more than twentyfold increase. We anticipate that the supply of power from renewables will increase to more than 10 gigawatt over the next five years.”
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# twenews
DONG Energy and ESG complete largestever testing of offshore wind-turbine piles DONG Energy and ESG have just completed one of the most comprehensive pile-testing campaigns ever. Initial results show great cost reduction potential for the offshore wind industry. The two wind companies have tested 28 piles on two different onshore sites to assist the development of new design methods for offshore wind farms. The testing has been undertaken by the joint industry project PISA. It was performed to assess and validate a new design method developed by the PISA academic working group, as led by Oxford University, including Imperial College London and University College Dublin. The academic working group supervised the testing on site, as each of the 28 piles were pulled sideways into the soil until failure. Alastair Muir Wood, Lead Geotechnical Engineer DONG Energy and Technical Manager for the PISA Project, said: “We’re very pleased with the test results, which confirm that traditional design methods in these soils are very conservative. The results indicate that in these site conditions there may be opportunities for savings identified by reducing the quantity of steel in the foundation. In
other words, there’s a savings potential that will contribute to reducing the cost of electricity.” The testing took place in Cowden, England, and in Dunkirk, France. The clay till site in Cowden and the dense sand site in Dunkirk represent typical surface soil conditions found in much of the North Sea. Furthermore, both sites have previously been used for pile testing activities, mostly targeting oil and gas engineering, meaning that a rich amount of field and laboratory soil data is already available. Applying a load of 37 London buses Bladt and Dansteel supplied piles of three different diameters for the tests; the piles with a diameter of two meters are some of the largest ever tested. During testing, other instrumentation was used including fibre optic strain gauges installed by Marmota Industries. In total, 28 tests were conducted primarily investigating the static monotonic but also the response under cyclic lateral loading. Steve Turner, Project Director from ESG, who undertook the testing, said: “The PISA project has provided some of the most challenging testing we’ve ever undertaken. With the largest test, we were simultaneously monitoring more than
250 different precision instruments, while applying a load greater than the weight of 37 London double-decker buses.” The PISA academic working group now has six months to analyse the data collected and use it to confirm the new design methods. Their final report is due to be delivered to the project partners in January 2016. Jesper Skov Gretlund, R&D Project Manager, said: “The PISA Project is a great example of inter-industry collaboration to solve a common problem. If the thickness or length of the steel piles can be reduced by even a small fraction, the saving in cost is quite considerable since smaller construction vessels can be used and larger turbines constructed. The next challenge is to analyse all of the data collected in order to refine our methods and apply these findings to our foundation designs.” This testing has been undertaken as part of the research project PISA (pile-soil analysis), which is being carried out by an industry working group headed by DONG Energy and involving EDF, RWE, Statoil, Statkraft, SSE, Scottish Power, Vattenfall, Alstom and Van Oord. PISA is being run under the framework of the Carbon Trust Offshore Wind Accelerator (OWA).
FMC Technologies Awarded Contract for Shell Appomattox FMC Technologies, Inc. has received an award from Shell Offshore, Inc. (Shell) for its Appomattox deepwater development in the Gulf of Mexico. FMC Technologies will provide Enhanced Vertical Deepwater Trees,
PAGE 8
subsea manifolds, topside controls, a control system, and a distribution system for the field, which lies in the Mississippi Canyon area of the eastern Gulf of Mexico in 7,200 feet of water, 140 nautical miles southeast of New Orleans.
“FMC Technologies has supported Shell’s subsea requirements for more than two decades, and this project represents the continued strength of that relationship,” said Tore Halvorsen, Senior Vice President, Subsea Technologies.
NEWS
Luvata wins Solar Industry Award for PV Process Excellence
© Luvata Industry professionals selected Luvata as the winner of the PV Process Award which recognizes excellence in a process that improves yield management in PV manufacturing. The award was presented during the 31st European Photovoltaic Solar Energy Conference (EU PVSEC)
innovative manufacturing and product approaches that have the potential to change the way we live. “The continuous advancement of Luvata’s photovoltaic wire, branded Sunwire®, begins by listening to the new challenges facing PV
the module.” Understanding solar ribbon is critically important to solar module efficiency and life cycle. Solar ribbon width, thickness and straightness have to be carefully adapted to accommodate the limitations of module materials. In addition, the
which took place in Hamburg, Germany September 14-18, 2015. The Solar Industry Awards, presented by Solar PV Management Magazine, have been created to recognise the whole value chain and those people, products and services that will develop
module manufacturer”, says Tero Horttana, Product Group Manager for Photovoltaics with Luvata. “The incremental improvements made to Sunwire stem from the ongoing need for higher productivity in module manufacturing and improved efficiency of
low yield strength with high elongation, thickness and width of solar ribbon can directly influence production yields and decrease cell to module (CTM) losses by 20-30%. “Luvata is proud to be selected by industry professionals for our efforts in this regard,” summarizes Horttana.
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# twenews
Shell halts Alaska Arctic exploration
On 28th September, Shell provided an update on the Burger J exploration well, located in Alaska’s Chukchi Sea. The Burger J well is approximately 150 miles from Barrow, Alaska, in about 150 feet of water. Shell safely drilled the well to a total depth of 6800 feet this summer in a basin that demonstrates many of the key attributes of a major petroleum basin. For an area equivalent to half the size of the Gulf of Mexico,
accordance with U.S. regulations. “The Shell Alaska team has operated safely and exceptionally well in every aspect of this year’s exploration program,” said Marvin Odum, Director, Shell Upstream Americas. “Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US. However, this is a clearly disappointing
with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska. The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell’s Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third
this basin remains substantially underexplored. Shell has found indications of oil and gas in the Burger J well, but these are not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in
exploration outcome for this part of the basin.” Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated
quarter 2015 results. Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea. Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.
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NEWS
The new and affordable, easy to install, off grid power solution Energy Solutions have become the UK’s leading supplier of off grid power solutions for homes and businesses with their unique range of off grid systems. In an exciting new development the company is now launching its latest off grid solution – EasyGrid. Designed and built in the UK but developed to be used worldwide, the range is a pre-configured, ready to install off grid solution suitable to most applications where a mains grid connection is not available, feasible or reliable. The EasyGrid range is designed as a “Plug and Play” system, and can be installed by a local electrician. All the components are contained with a robust, lockable cabinet that can be left outside so no interior space is required. Energy Solutions’ Head of Sales Mark Penny, explains: “We want to make off grid power as straightforward as possible for our customers – and EasyGrid does that. Whether they are looking to provide electrical power for a small office or a large family home we have an EasyGrid system that will be a perfect fit.” Being able to have the unit installed by a local electrician makes it a truly accessible, affordable option – with an easy to follow installation guide and a telephone support team the units can be installed within a day.
and 10000, the cabinets have an additional grid connection which allows owners to use unreliable mains grid, when available, and to revert first to stored power and then a back up generator – all seamlessly. This is vital in areas that have frequent daily power cuts but power
is needed on a continuous basis. “We believe that this range will be popular both within the UK and internationally; our first units have already being dispatched to customers that have been waiting for an all-in-one solution,” concludes Mark Penny.
The EasyGrid range offers flexibility for owners as they can connect to both renewable power – solar or wind; as well as a generator – giving owners access to continuous, silent power everyday. In the case of the Easy Grid 5000
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# twenews
Greenled Oy to light up the City of Helsinki
Greenled Oy, the leading Finnish manufacturer and supplier of allinclusive LED lighting solutions, has won the contract to supply street lighting for the City of Helsinki. The request for tenders emphasized energy efficiency, high quality optics and durable design. In the first phase of the Helsinki LED project Greenled is set to deliver 1 700 Sirius outdoor luminaires to enlighten the Finnish capital. Launched in April 2015, Sirius is an innovative Finnish made LED luminaire
to provide the most advanced LED luminaires on the market. We work hard to ensure the high quality of our Finnish made products and envision executing similar projects for many more cities, both in Finland and abroad, in the near future”, says Pertti Tahvanainen, CEO of Greenled Oy. ”The market for LED luminaires is currently growing at an annual rate of 20 %. The Sirius outdoor luminaire is a great example of a successful Finnish product that is based on sustainable
lighting solutions supports strongly Greenled’s mission to promote Finnish technology abroad. “We believe in profitability and business growth based on domestic production,” CEO Tahvanainen says. The steadily growing market share of LED luminaires within the EU is further facilitated by several factors, including recent development of regulation, such as the EU Energy Efficiency Directive and several major retailers banning the sales of incandescent light bulbs.
that combines advanced lighting technology and robust design. Demand for Greenled’s energyefficient lighting solutions is growing rapidly on the global market. ”The decision Helsinki made serves to reinforce our confidence in our ability
development and advanced technology”, Tahvanainen states. The market share for LED luminaires is estimated to rise up to 70% of the global lighting market by the year 2019. The ongoing transition from traditional light sources to LED-based
The value of the global LED lighting market was estimated at over 6 billion euros in 2014 and the potential for future growth remains significant, as, for example, only a relatively small proportion of outdoor lighting is currently covered with LED luminaires.
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NEWS
Seacrest to invest $200M in Norwegian oil & gas company S eacrest , an invest m e n t company, has ag reed t o i n vest in a new oil and ga s d evelo pment and produ c t i on company in No rway, O K E A A S . O KEA, led by Erik Ha u ga n e , former Det nor ske o l j e se l sk a p C EO , and Ola Bor t en M oe , the for mer No rway M i n i st e r for P et roleum and En e rgy, w i l l focus o n develo ping di sc ove re d oi l and gas fields on t h e N orweg ian cont inenta l sh e l f . In a st at ement last m on t h , S eacrest said it wo u l d i n i t i a l l y i n vest up t o $2 00 mi l l i on i n O K EA. H e nrik Schroder, Pa rt n e r, S eacrest Capit al Grou p a n d
Ch a i rm a n , O K E A AS, s a id : “S e a c re st i s a t t r a c t e d t o t h e Norw e gi a n Con tin e n t a l Sh e lf gi ve n c u rre n t m a r k e t d y n a m ic s , c om bi n i n g t h e a v a ila b ilit y o f de ve l opm e n t a n d p ro d u c t io n proj e c t s, t h e f a v o u r a b le p r ic in g of t h e se a sse t s, t h e m a t e r ia l re du c t i on i n t h e c o s t s t r u c t u re of t h e i n du st ry a n d a n a t t r a c t iv e f i sc a l e n vi ron m e n t w h ic h prot e c t s dow n sid e r is k . ” “We l ook forw a rd t o w o r k in g w i t h t h e t e a m t o id e n t if y a n d de ve l op i n ve s t m e n t opport u n i t i e s a nd t o b u ild o u t a n a t t ra c t i ve m a t e r ia l p o r t f o lio of de ve l ope d pro d u c t io n a sse t s. ”
Er ik H a u g a n e , C E O o f O KEA AS, c o m m e n t e d : “ T h e re a re n u m e ro u s d is c o v e re d f ie ld s in N o r w a y t h a t h a v e h u g e p o t e n t ia l v a lu e b u t a re n o t p ro d u c in g t o d a y. T h e O KEA t e a m h a s e x p e r t is e in s u c c e s s f u lly d e liv e r in g o il a n d g a s p ro je c t s t h ro u g h r ig o ro u s p la n n in g , t h e c re a t io n o f p o w e r f u l re la t io n s h ip s w it h a ll p ro je c t s t a k e h o ld e r s , u s in g in n o v a t iv e a n d c o s t - e ff e c t iv e t e c h n o lo g ic a l a d v a n c e s a n d d e v e lo p m e n t s t r a t e g ie s . O KEA w ill u s e t h is e x p e r t is e t o u n lo c k t h e m a x im u m c o m m e rc ia l p o t e n t ia l in p ro je c t s o ff s h o re N o r w a y. ”
Amec Foster Wheeler: Expanding operations in the UAE Amec Foster Wheeler, a multinational consultancy, engineering and project management company headquartered in London, announced in September that it was expanding its UAE operations in response to recent contract awards and growing opportunities in the Middle East. The company said the Middle East market remained strong in
across the Middle East region. Amec Foster Wheeler says it is currently executing several of contracts from Abu Dhabi, the largest of which is a Project Management Consultancy (PMC) contract for the UZ750 project in the Upper Zakum field. In addition to providing PMC services, Amec Foster Wheeler is growing its detailed design capability in Abu Dhabi to service
to expand its non-hydrocarbon business across the Middle East by leveraging global capability in the Clean Energy, Environmental & Infrastructure and Mining markets. Following completion of the Abu Dhabi office expansion in Khalifa Park, a ribbon cutting ceremony was held on Tuesday, September 29th. Garry Dryburgh, recenty
a time of oil price uncertainty and Amec Foster Wheeler has established Abu Dhabi as its Middle East hub of expertise in the region. The company now has over 700 employees in the UAE, supporting 2000 people
local customers. The company also offers an integrated service offering through its consultancy companies based in Abu Dhabi. As well as providing Oil & Gas services, Amec Foster Wheeler said it was also looking
appointed Amec Foster Wheeler’s President for Middle East and Africa said: “The Middle East holds significant opportunities for Amec Foster Wheeler and this expansion is in line with our long-term growth plans.”
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Sustainable steel? Editorial: Rosie DeWinter
Total World Energy speaks with Richard Holcroft, Reinet van Zyl and Otto Scribante at Saldanha Works to find out, amid the cloud of controversy surrounding the introduction of the carbon tax next year, how this ArcelorMittal site is playing its part in combatting climate change and implementing duty to care to its workforce.
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ARCELORMITTAL SA In the 2015 report released by Sustainable Energy Africa on the use of energy across South Africa, it was revealed that it is currently ranked the 12th-largest greenhouse gas emitter in the world. Examining the sustainable energy development of 18 South African cities which are home to almost half of the country’s population - occupying 4.5% of land area – the report details that it is these particularly dense areas which must play an essential role in the continued development and proactivity of reducing climate change and implementing sustainable initiatives. Per capita emissions in South African cities are high, relative to their level of development, the report reveals. In Johannesburg for example, the emissions per capita are 6.4tons, in Cape Town 7.8-tons and in eThekwini it reaches 7.7-tons. When comparing this with 4.9-tons per capita in Tokyo or 1.4-tons in São Paulo, the emissions are undeniably high. Looking at South Africa as a whole, the report states: “The average energy-related emissions is 6-tons of carbon dioxide equivalent per person, which is on a par with cities such as Paris, London or Berlin that have larger populations and higher levels of development.” With urban populations forecast to reach 70% of the national total by 2030 and 80% by 2050, the demand for modern energy will inevitably surge in correlation with these figures – largely fuelled by economic growth, urbanisation and demographic change. To address the growing and dominating force of climate change, energy efficiency is no doubt the cheapest, quickest and most direct method with high electricity costs and energy generation constraints
in the country showing few signs of reprieve. The energy efficiency of streetlights, traffic lights, buildings and water pumps provide huge potential in energy savings, with more than R10 million a year for many municipalities. “Local government’s own operations may account for only about 2% of total municipal electricity consumption but are a potential gold mine for efficiency implementation,” says the report. Cape Town has the potential to save an exponential R13.2 million a year on street lighting alone with Johannesburg able to save an estimated R21.3 million on bulk water supply and wastewater treatment. With such key and tremendous savings long-term for the country, these energy initiatives and sustainable developments do not necessarily provide an immediate result but certainly emphasise a long-term vision, as the report outlines. “The economic benefits, through greater efficiency and (in the medium to long term) cheaper energy sources, are not instantaneous. Therefore, the transition to sustainable energy requires a high degree of leadership, innovation and partnership. This vision must go beyond short-term municipal budget constraints, immediate consumer wants and short-sighted political agendas.”
ENERGY SAVING INITIATIVES In an attempt to curb carbon emissions and reduce environmental impact, energy saving initiatives are being implemented across different industries, successfully showcasing
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large cost savings and encouraging sustainable results. One company in the midst of combatting climate change and successfully introducing energysaving initiatives is ArcelorMittal SA. An essential component in South Africa’s infrastructure developments, steelmaking requires natural resources, leaving an inevitable environmental footprint but even with steelmakers’ best efforts to curb these GHG emissions, the industry is severely restricted and emission reductions called for by climatologists cannot be achieved with the current available technologies. Total World Energy speaks with the management team at its Saldanha Bay Works plant to
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find out how the implementation of energy-saving initiatives is having a positive impact and the importance of sustainable practices at this site. Using cutting edge technology, Saldanha Works successfully produces high quality, ultra-thin hot rolled coil (UTHRC) at a current capacity of 1.2 million tons per annum, largely for the export market.
SUSTAINABLE SOLUTIONS Certainly no stranger to reducing its environmental impact, Saldanha Works stands as the only steel mill in the world which combines the Corex and Midrex process into a continuous chain. This pairing eliminates the requirement of blast furnaces and coke ovens, placing it in a position to be a world leader in environmental management and emission control. “We differ from the other business
units in that we are located in an environmentally sensitive area, and therefore need to be very vigilant as regards our responsibilities,” explains Richard Holcroft, General Manager at Saldanha Works. With two key focus areas to tackle, Holcroft explains fugitive emissions remain one of the sites main challenges in its fight to reduce environmental impact from its steel operations. “In our environment we use a lot of raw materials and we move these from one point to the next so fugitive emissions remain a challenge. We are located in a bay and subjected to different wind patterns, the strength of which varies, we can have very strong north winds and south-east winds, so we have to be able to manage our raw materials accordingly. That’s the first challenge we face on a regular basis. “The second big challenge is fugitive emissions from the processes,” Holcroft explains. “We have two focus areas there - the iron-making unit and the steel-making unit. We will be implementing an improvement to help correct a shortcoming we have already identified in our Corex iron-making unit to help prevent fugitive emissions. “That one is a very limited capex spend but the bigger spend will be in the steel-making area for what’s called our Conarc Process – essentially an electric arc furnace type operation. The current fume extraction system design has its limitations and at times is really not the optimum solution for our operation. “The new design will be implemented in a phased approach starting in 2016, subject to the capital being realised as requested. If that is all solved and implemented, then our two biggest challenges for the
ARCELORMITTAL SA Saldanha Works, in terms of fugitive emissions, will have been solved.” In 2012, it was reported that Saldanha Works saved an estimated R127 million as a result of the R21 million spent on energy saving initiatives it introduced in 2011. With the new initiatives having an evident and positive impact on the site’s operations, a study conducted by the United Nations Industrial Development Organisation showed that the total savings could reach R362 million by 2016, even if no further energy efficiency investments were made by the plant. In a process which requires significant energy, engineering and technology inputs, the introduction of a world-class manufacturing program helped optimise the facility’s energy management program, placing Saldanha Works
Upington
Kimberley
Saldanha
at the forefront of the Group’s lowest-cost producers in 2014. The water treatment facilities at Saldanha are uniquely configured to make the best use of the natural arid conditions to evaporate brine emanating from desalination processes that are utilised. “In terms of water management - we consume significant quantities of water - we have our own water treatment plant,” explains Otto Scribante, Manager of Environment & Quality Management. “Almost all water, except that which is lost to evaporation, is cleaned and recycled, and includes a Reverse Osmosis (RO) treatment process.” A world leader, Saldanha ranks amongst the world’s best regarding water abstraction for steelmaking purposes. “The plant is zero effluent discharge and we adhere to that very strictly. We
Worcester
are in a low rainfall area, our typical rainfall is 170mm per annum, which is very low so we don’t have a huge problem with effluent caused by rain, so that is slightly easier to manage,” explains Scribante.
DUTY TO CARE With an array of sustainable and successful initiatives implemented, Holcroft explains that it is constant environmental awareness amongst its employees which is so vital to the plant’s continued efforts to reduce its long-term environmental impact. “We have an environmental manager and a team whose objective is to keep us honest and to ensure that each and every one of us understands that we have a duty to care for the environment. We are located in an environmentally sensitive area and any sort of contravention will not be tolerated,” Holcroft explains.
Johannesburg
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“We have an area air quality management officer who is also continuously monitoring business in the area. You rely heavily on the thinking and actions of your workforce and that’s really education and training and making sure they understand their responsibility as regards our duty to care for the environment. “The environmental department keeps us honest and challenges us all the time. We have weekly shift sessions, where we will sit with the shift team for that day and go through safety, the environment and production issues. I think it’s about constant environmental awareness and ensuring the team understands that we have a duty to care for the environment, that’s what we really try to do.”
“We’ve shown a lot of improvement in terms of our energy consumption, but where we are now, we have saved and maintained but looking to the future, we need technology injection”
CARBON TAX 2016 With shifting rainfall patterns spreading across South Africa increasing the risk of flooding and droughts, global climate negotiations have warned this is a result of climate change with the world now two degrees warmer than it was 100 years ago. Before the Industrial Revolution, carbon concentrations in the atmosphere were recorded at just 250 parts per million but today, this has almost doubled, reaching 400 parts per million and with more heat being trapped in the atmosphere, temperatures are continuing to rise at an alarming rate. In an effort to mitigate climate change and lower emissions, The National Treasury (Department of Finance) has introduced the carbon tax. First announced in 2010, it proposes to
Benefits of Optimization of Nozzle Systems Pressure on the steel industry to continuously reduce their energy consumption and to reduce emissions for environmental reasons is leading to more intensified efforts to optimize systems in the various sections of the steelmaking process. With Hot Rolling, the descaling systems have always been a focus for surface quality and energy saving programs. With this in mind, leading nozzle and spray system manufacturer Lechler GmbH developed the next generation in descaling technology - Scalemaster HP-Superior. With advancements in CFD design, the HP-Superior nozzle system delivers improved impact force (up to 20%) at the same operational pressure, flow rate and spray height. Last year exclusive representative in Southern Africa Industrial Nozzles & Systems (INS) embarked on a roll out campaign, with the various plants at ArcelorMittal South Africa (AMSA) to identify and optimize their various descaling systems. With a specially developed software program (DESCALE 7.X) Lechler is able to simulate current installations. This benchmarking enables Lechler to determine the overall impact value, which the plant can elect to either improve or maintain. However, in most cases at AMSA, due to the improved impact force of the HP-Superior nozzles, Lechler supplied nozzles, which offered improved or similar impact force, but with reduced flow rates to that of the existing nozzle system. This reduction in flow rate is a direct saving on energy costs, with reduced pumping capacity and less strain on water recirculation plants. Feedback from AMSA on some upgraded installations indicates reductions of over 20% in flow rate, as such energy costs. Further benefits of new Scalemaster HP-Superior nozzle system is the compatibility with existing Scalemaster nozzles. With no requirement for modifications to the header layout, there is no capital investment. Although with the potential energy savings, optimization of a header layout would be a worthy investment.
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ARCELORMITTAL SA place a price of R120 a ton on carbon With taxes on electricity already emissions. in place, an additional tax could Hoping to change the behaviour and potentially be destructive for many attitude of consumers and producers companies - currently ArcelorMittal and penalise those that emit too much SA already pays in access R100 carbon, this introduction has since been million in environmental levies which delayed, facing severe objections and are raised as part of its electricity strong lobbying in South Africa. consumption. Reinet van Zyl, Energy Manager at “I’m very serious if I say you will Saldanha Works, explains why it poses probably lose the bulk of the remainder a potentially catastrophic result, not of the manufacturing industry,” van just for ArcelorMittal SA, but for the Zyl explains. “We’re an export plant industries operating across South Africa. and focus on exporting into Africa so “It’s not just us or even the steel where our competitors may not have industry, the manufacturing industry the burden of a domestic carbon tax, in South Africa has been battling, for us to compete in those markets decreasing over the years from 25% of GDP to around 13% currently. It will actually destroy the remainder of the manufacturing industry if it is introduced in the way that has been currently proposed.” Posing an undeniably big risk to the South African economy and taking into account the issues of limited alternative technology available in the short to medium term, the current carbon tax design will, for all carbon and energy intensive industries, result in a highly disproportionate tax load to bear which may detrimentally affect the feasibility of such industries. “It will destroy the sector in South Africa in five years - between your metallurgical processes electricity availability and priceOptimize and spray solutions from Lechler the carbon tax - and will closewith down those manufacturing facilities•inDescaling South • Continuous casting Africa if it goes ahead in the current • Roll cooling (hot & cold) format,” explains van Zyl. • Processing lines In the case of ArcelorMittal,• the System audits • Process optimization P proposed carbon tax would have
with carbon tax on top, is a serious challenge that we face and it will be really difficult.”
AN ENERGY EFFICIENT FUTURE? With the benefit of its more modern design, van Zyl explains that Saldanha Works has been lucky in that it hasn’t encountered many significant issues – “In general, I believe, if you focus on sustainability and being environmentally responsible, it makes good business sense. “One of our biggest costs is energy so to be efficient and reduce
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a sustainable situation for steelmakers or other related industries. The carbon tax, in its current form, will have a financial impact of around million Cape+27 Town: 557 3822 | Johannesburg: +27 11 236 8618 CapeR600 Town: +27on21ArcelorMittal 557 3822 SA’s | Johannesburg: 11+27 23621 8618 www.industrialnozzles.co.za | www.lechler.de www.industrialnozzles.co.za | www.lechler.de operations, which is simply not sustainable.
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your carbon footprint makes good economic sense. We’ve shown a lot of improvement in terms of our energy consumption, but where we are now, we have saved and maintained but looking to the future, we need technology injection.” An estimated R1 billion investment, van Zyl explains ideally what this injection will involve and how it will assist Saldanha Works in its bid to become even more energy efficient. “The Aerial Gas Distributor (AGD) is the latest Corex technology offered by S-VAI. The AGD will improve the operation and efficiency of the Reduction Shaft by improving gas distribution. Campaign lengths between shaft cleaning shut-downs
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“One of our biggest costs is energy so to be efficient and hence reduce your carbon footprint, it makes good economic sense”
are significantly increased and the average pellet consumption can also be reduced. Improved metallisation of the burden in the Reduction Shaft can then be expected which will result in improved fuel rate and tempo.” In an effort to implement more energy initiatives and lower its energy consumption, ArcelorMittal SA is assuredly riding on a successful wave across the Group. And despite the looming introduction of the carbon tax early next year, Saldanha Works remains dedicated and focused on its unerring compliance to maintaining strict environmental initiatives and perhaps most importantly, spreading its duty to care mantra to its team of steadfast employees
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Making waves in the SEU market Editorial: Annabelle Withering
Š Triyards Holdings
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TRIYARDS HOLDINGS
Establishing a prominent position in the liftboat industry, Triyards gained further traction in July this year with its latest contract, valued at $175 million, to supply two enhanced BH-450 series liftboats - “Our stepped up presence in large liftboats reflects the industry’s endorsement of the Group’s strong engineering and fabrication expertise. As the region’s leading shipbuilder for these vessels, we are poised to gain further as their adoption widens in the industry globally.”
The first global company to construct the 450ft self-elevating unit (SEU) series – the BH-450 – Triyards Holdings is one of the few yards in Singapore to both design and build its very own SEUs. With a seamless track record, Triyards is an engineering and fabrication solutions provider, focusing on the oil and gas industry, with yards now in Vietnam, Singapore and Houston. A subsidiary of Ezra Holdings, Triyards acquired the first of its two Vietnam yards from SEAMER Holdings Ltd in 2005, with the second yard set up in 2007. Three years later and the company acquired its third yard, an engineering and design facility for its crane and heavy lifting product line, in Houston. Now operating in more than 16 locations across six continents covering Africa, Europe and Australia; Ezra was founded in 1992 and now stands as a leading contractor and provider of integrated offshore solutions to the oil and gas industry under the EMAS brand. Triyards’ capacity in Vietnam
infrastructure, its two yards – one in Vung Tau, Vietnam, and the other in Singapore – helped to increase Triyards’ yard capacity by more than 67% with a total area measuring 158,648 m2. Of the acquisition, Chan Eng Yew, Triyards’ CEO, said in a statement: “Strategic Marine is a good fit for Triyards as we work to build our name in fabrication and engineering solutions and move beyond the construction of oil & gas product lines adding capabilities and products which would target a wider clientele base.”
Earlier this year, Triyards was awarded a $175 million contract for the delivery of two enhanced BH-450 series liftboats – the third and fourth in the series to be built by the company, this follows its successful win in January for two liftboat contracts valued at US$75.4 million. Designed to stand as next generation state-of-the-art four-legged liftboats, these are expected to be delivered to
and expectations of our discerning clients. We will remain focused on strengthening our lead in liftboats in Asia, the Middle East and West Africa.” The enhanced BH-450 liftboat series is able to accommodate up to 250 personnel and is the largest and tallest in the product range on offer. Lattice-legged vessels, they will stand at more than 130m tall and will be able to operate in water depths of up to 105m – making them suitable for a wide range of offshore, clean, and renewable energy projects such as windfarms. Of the contract, Chan Eng Yew said: “Our stepped up presence in large liftboats reflects the industry’s endorsement of the Group’s strong engineering and fabrication expertise. It also demonstrates increasing market acceptance and growing demand for liftboats. “As the region’s leading shipbuilder for these vessels, we are poised to gain further as their adoption widens in the industry globally.” Intent on expanding its business
increased further in October 2014 through its acquisition of Western Australia’s Strategic Marine. With more than ten years’ experience building aluminium and steel vessels and complex steel structures for both the mining sector and marine
experienced and well established U.S. based operators. Speaking of the contract win in January, Chan Eng Yew, said: “Our pace of recent contract wins reflects confidence in our ability to meet exacting industry standards
to be one of only three yards in Singapore to design and construct its very own proprietary jack-up rig, the introduction of another new premium class 400 HPHT (high pressure, high temperature) drilling rig - the TDU-400 - has
HIGH SPEC, NEW CLASS
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been introduced and designed to meet the demands of different clients without requiring the costly and time consuming task of redesigning. The company explains it is “designed to be ‘lighter weight’ without compromising operating performance. The TDU-400 is competitively priced and will make a worthy addition to our growing range of proprietary products. This will certainly propel us closer to our goal of becoming a leading
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shipyard in the region.” With growing momentum in South East Asia and the Middle East, the demand for liftboats has increased significantly in recent years with operators understanding the high value-to-cost ratio of using them. Triyards is at the forefront of this industry, with its proven designs, dedication, fabrication capabilities and enviable track record, the company has already built and delivered seven liftboats successfully,
with further liftboat orders in the pipeline. The construction time for liftboats can vary - for the smaller units, it can be anywhere from 1416 months, while the larger units, depending on complexity, can take between 18-20 months. “Our recent new orders attests to the industry’s confidence in us and our ability to meet our clients’ stringent requirements on safety, quality, timeliness of delivery and cost efficiency.
TRIYARDS HOLDINGS
© Triyards Holdings
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They also reflect the market’s satisfaction of our engineering and fabrication capabilities. “The orders also showcases the confidence clients have in our engineering capabilities. This unit reinforces our versatility and capability in this product segment.
proximity of our facilities to those markets gives us a distinct cost advantage from a transportation and cost perspective,” Mr Chan Eng Yew explains. In July this year, the Group reported its financial results for the three months that ended 31st May
four vessels helped to contribute significantly to the Group’s strong operating cash flow of $33.1 million for 3Q FY15, compared with an outflow of $9.3 million previously. Consequently, the Group’s net debt (total external indebtedness net of cash and
“For the liftboat product line, I think we have a very strong track record of successful delivery. If you’re going to order a liftboat from Triyards in Vietnam, to be deployed in South East Asia or to the Middle East or to Africa, the
(3Q FY15). Net profit attributable to shareholders came in at $5.4 million on revenue of $63.9 million - largely in part from four liftboats that had progressed into the advanced stages of construction. The near conclusion of these
cash equivalents) to equity ratio decreased from 0.5 times to 0.3 times as at the end of FY14.
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A RECORD BREAKER Perhaps one of the company’s most successful and world-
TRIYARDS HOLDINGS
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Kongsberg Maritimes integrated Kongsberg Maritimesinintegrated approach and expertise positioning, approach andcommunication, expertise in positioning, hydroacoustics, hydroacoustics, communication, control, navigation, simulation, and automation enables us simulation, to give our and control, navigation, customers The enables Full Picture. automation us to give our customers The Full Picture. EVERYDAY EXCELLENCE, THAT’S THE FULL PICTURE EVERYDAY EXCELLENCE, THAT’S THE FULL PICTURE PAGE 27
renowned builds is the Lewek Constellation, delivered in 2013, it is considered the most advanced construction and pipelay vessel of its class in the world. Also the largest ship hull to be launched into the water by airbags in the world, this record-breaking vessel has been designed to deliver complex projects in an efficient, safe and reliable manner, able to operate in water depths exceeding 3,000m. A DP3, multi-lay vessel with heavy-lift capabilities, the Lewek Constellation is able to support rigid and non-rigid pipelines and has a 3000-ton heavy lift crane on
pipelayer to carry out offshore works for VAALCO in a contract worth an estimated US$120m. In June this year, the Lewek Constellation set the industry pipelay record in 7,368ft of water during sea trials in the deepwater regions of the Gulf of Mexico - all in preparation for the execution of three subsea tie-back projects for the long-running Houston based company, Noble Energy. Tension was recorded at 632mT – the highest tension that has ever been experienced in the history of rigid reeled-lay operations. Lionel Lee, Chairman, EMAS AMC, said: “Successfully laying
quality of our new vessel built by EMAS Group’s subsidiary TRIYARDS in Vietnam.” “What this record means for clients going forward is that we can offer a more efficient pipelay solution in ultra-deep water for pipelines up to 16 in. in diameter when compared to traditional S-Lay or J-Lay methods, even with thick insulation coatings, thereby giving our clients more options to consider,” John Meenaghan V.P. of Global Operations, said in a statement.
board. The Lewek Constellation serves VAALCO Gabon, carrying out operations at its Etame Marin Field located off the coast of Gabon in West Africa, has joined EMAS AMC’s Lewek Express
the test pipe at this recordbreaking top tension during pipelay trials is a significant achievement for EMAS and an industry first. It’s a testament to the experience and expertise of our people combined with the
i n c re a s i n g l y h i g h a n d u n i q u e industry specifications, Tr i y a rd s h a s , t o d a t e , b u i l t a n d d e l i v e re d s e v e n l i f t b o a t s on time and within budget since 2007, helping to cement i t s p o s i t i o n a s A s i a ’s l e a d i n g
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A BRIGHT FUTURE With the implementation of
TRIYARDS HOLDINGS fabricator and engineering s o l u t i o n s p ro v i d e r i n t h i s g ro w i n g i n d u s t r y s e c t o r. Standing as one of the few Singapore yards to both design and build SEUs, Chan Eng Yew explains the necessity and importance of maintaining its highly effective corporate structure. “W ith regards to our corporate structure, we can actually turn this into commercially viable projects. W ith larger shipyards these projects may seem a little bit too small, especially with cost efficiencies and overheads, they may not be profitable. Juxtaposed against that is the smaller yard owners who may not be in a comfortable position to build a liftboat which would cost at the very least US$40-$50 million. Triyards is finding itself in
“I think it’s a very exciting time for us, not only because of the potential upstream and interest in the SEU segment but because we are also basically introducing new products to the market with the Triyards name”
quite a comfortable niche, where we are the right size to actually produce these units. “We still have a very healthy order book and I think there’s bookings for both the aluminium product line and our steel products, predominately revolving around the selfelevating units, such as the lifts boats. “I think it’s a very exciting time for us, not only because of the potential upstream and interest in the SEU segment but because we are also basically introducing new products to the market with the Triyards name, such as the aluminium boats. We are also looking forward to the roll out of our new crane product which will compliment the products we have currently very well,” the company’s CEO concludes
Marine and Shipbuilding
Navigate to new horizons Get on course with green returns half_page_ad_Oct2014 (151x112).indd 1
10/24/2014 5:49:59 PM
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PNG: A country of reserves Editorial: Rosie DeWinter
The Elk-Antelope field, as it enters basis of design, represents a huge milestone for InterOil and a significant step in its strategy to discover and enable the development of hydrocarbons – whilst ensuring it is completed successfully with the right partners. “We’ve got a great partner in Total who is used to working in remote parts of the world and is a good technical operator and we’ve got Oil Search who have been in PNG for nearly 100 years and are part of the country’s first LNG project,” a spokesman for the company explains. “You don’t always get those ingredients coming together.” PAGE 30
INTEROIL Earlier this year, the Elk-Antelope project, located in Papua New Guinea, took a big and significant step forward and following the decisions for project name and site selection, it entered basis of design. Joint venture partners - Total, InterOil and Oil Search – came to a unanimous decision and agreed on Papua LNG as the project name, recognising the importance that both the Central and Gulf provinces play in developing the resource for the benefit of the country and its locals. In recent years, with the PNG LNG project set to deliver nine trillion cubic feet (Tcf) of gas over its 30-year lifespan and the exciting discovery of ElkAntelope, now the world’s most significant discovery in fold and thrust belts – Papua New Guinea has been labelled as having the most promise for large oil discoveries world-wide, placing it, albeit unexpectedly, firmly on the global energy map. The central processing facilities for the country’s second liquefied natural gas plant will be located near the Purari River in the Gulf Province, 360km north-west of Port Moresby and will be connected to the LNG facility via onshore and offshore gas and condensate pipelines. Selection of the final development concept, which includes the size and capacity of facilities, is set to begin early next year following the appraisal completion of the Elk-Antelope field. Front-end engineering and design with early works are scheduled to follow later in the same year with a final investment decision (FID) on track for 2017. Dr. Michael Hession explains how the site choice for Elk-
PAGE 31
Antelope is imperative to creating value from what is becoming one of the lowest capex LNG projects in the world. A former Woodside and BP Executive, Dr Hession has been at the helm of InterOil for two years now, following his appointment in July 2013. “Total have a large team at work and the venture expects to enter front-end engineering and design for the LNG project in 2016. Total is ramping up their presence in Papua New Guinea and we now have a world-class LNG operator operating a world-class field. “Sites were chosen for their technical, economic and environmental benefits and
PAGE 32
“While PNG LNG has paved the way and established PNG as a country that can deliver a mega project, we’re on their coattails and hopefully we’ll follow with the country’s second LNG project”
followed extensive surveys and studies by Total over the past year. These sites represent the best locations. The central processing facility in the Gulf Province will be near the gas field with river access. The LNG facility near Port Moresby has potential for synergies with existing infrastructure and sufficient land for significant LNG train expansion,” explains Dr Hession.
BIG DISCOVERY, BIG DEVELOPMENTS Formed in 1997 following the relocation of a refinery from Alaska to Papua New Guinea, InterOil later discovered ElkAntelope in 2006 and 2008 respectively. The biggest discovery in Papua New Guinea’s history, the Elk field lies above Antelope in its own reservoir
INTEROIL system. Following geological tests, Antelope is thought to be a high permeability reservoir with a gross column between 700m to 800m. Selling off its refinery and downstream assets, InterOil made the decision to focus on its upstream development business. Following its historic discovery of Elk-Antelope, InterOil made five consecutive discoveries within the Eastern Papuan Basin – considered to be the most exciting emerging hydrocarbon basin in the world. With licences now spanning across 16,000 sq. km, InterOil has gained an enviable and highly informative understanding of the region’s geology through numerous aero-gravity surveying – completing the largest seismic data set of any company in the basin. Papua New Guinea is largely dominated by two basins – the less explored of the two is the Eastern Papuan Basin with the more heavily explored, the Western Papuan Basin, laying adjacent. Separated by a deepseated fault, each basin, while containing working hydrocarbon systems, has very different evolutions and geological components. In the Western Papuan Basin, a total of 280 wells have been drilled and include discoveries at Stanley, Hudes and Kutubu. It is this basin which is centered on the PNG LNG project - containing expected gas reserves of 9 Tcf and oil reserves set to reach 200 million barrels. And while the Eastern Papuan Basin contains just 65 wells, these include many of the country’s new and key discoveries - Raptor, Bobcat, Triceratops and Elk-
Antelope - all discovered by InterOil. Earlier this year, InterOil announced that an appraisal well drilled at its Triceratops gas discovery successfully delivered strong flow test results. InterOil recorded the Triceratops-3 probe to flow at a rate of 17.1 million cubic feet of gas per day, with an additional 200 barrels per day of condensate. “We are excited by the well results and the enhanced development optionality that Triceratops gas can provide,” Dr. Hession explains.
In August, the Joint Venture began drilling, as part of its appraisal campaign on the Elk-Antelope gas field, a sidetrack well at the Antelope-4 development site. Despite its initial suspension earlier this year Total acquired approval from the PNG Department of Energy to re-enter the well in August – operations resumed with the on-site preparation and testing of well-head equipment. Although initiated at a measured depth of 2,828 feet, the side-track was drilled ahead at a depth of 2,936 feet.
40 years of conducting safe and cost efficient rig moves.
United States 503-678-1222 Port Moresby 675-325-2274 www.colheli.com
PAGE 33
Quickly emerging as the most cost effective LNG plant in the world, it is the location of the ElkAntelope field which is proving so advantageous cost-wise. With the PNG LNG project seeing average costs of up to $19 billion, the ElkAntelope field lies 300km closer to Port Moresby, requiring 300km less of pipeline with no necessity for an expensive air strip for
LNG buyer markets. Both China and Japan are long-term LNG customers for the country with demand for LNG predicted to double by 2020. Consuming up to 9 Tcf of gas every year (the equivalent of one PNG LNG project), Japan stands as the world’s single biggest LNG importer – with up to 100 million tons a year. With its surge in
making waves across Papua New Guinea, it is hoped Elk-Antelope will aid in catalysing this, opening up a wealth of employment opportunities for the PNG locals.
transportation. Papua New Guinea is certainly a cost efficient location for this gas project compared to sites in East Africa for example - holding the distinct advantage of laying within easy reach of the Asian
economic growth, this demand is set to further increase over the next two decades, due to the growing middle class population which is expected to triple by 2030. And with the economic boom
upwards of 22,000 people, has become an integral and important project for the country, providing invaluable input to Papua New Guinea and helping to provide a revenue stream for the government. With living standards
PAGE 34
A GROWING MARKET The only new build LNG export plant in the world last year, PNG LNG, led by ExxonMobil and partners Oil Search, employing
INTEROIL
of locals continuing to rise, it is expected that the Elk-Antelope project will have an equally positive effect. Gas from the 6.9 million-ton per annum integrated PNG LNG project is sourced from seven separate fields; Hides, Angore, Juha gas fields and from the fields operated by Oil Search; Kutubu, Agogo, Moran and Gobe Main oil
onto LNG tankers before it is shipped to the Asian gas market. “The onset of that project demonstrated to the world that the PNG government was stable enough and competent enough to bring on a major project, the fiscal regime works and is stable and competitive,” a spokesman at InterOil explains to Total World Energy.
A STRONG VISION
fields. Conditioned in the PNG highlands, gas from the fields is transported by gas pipeline to the LNG plant, located 20km northwest of Port Moresby. Liquefied at the LNG plant, the gas is loaded
“While PNG LNG has paved the way and established PNG as a country that can deliver a mega project, we’re on their coattails and hopefully we’ll follow with the country’s second LNG project.”
employees on board: “We’ve got a pretty robust team of people who are very experienced with LNG projects around the world who have come from Shell, BP, Chevron and Woodside to work with us,” InterOil’s spokesman
Recently appointing Thomas Nador as Executive Vice President of the Papua New Guinea Business Operation, this follows the election of Isikeli Taureka, InterOil’s former Executive Vice President to the company’s board of directors. InterOil is certainly not averse to ensuring it has the very best
PAGE 35
explains. Based at Port Moresby in PNG, Nador’s role includes accountability for the company’s daily operations in Papua New Guinea within the health, safety, environment, human resources, administration, community and government affairs and supply chain sectors. Taking up the role of Executive Director at InterOil, Taureka will now hold the responsibility for providing strategic advice to the board, managing senior relationships with business, political and community stakeholders and assisting the Chief Executive with key investor relationships. “We’ve got quite a few geological staff from Papua New Guinea and a lot of our finance and HR department are from PNG,” the spokesman explains. “We’re determined to increase the capacity and capability of Papua New Guinea because they are capable and they are readily available but haven’t necessarily had the same opportunities as non-Papua New Guineans.
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“We have world class assets and we’ve got an extremely competent team with vast international experience, so on those measures we’ve got all the ingredients to make it work”
“An entrepreneurial spirit spawned the company and as for the future, the company is well funded. We have world class assets and we’ve got an extremely competent team with vast international experience, so on those measures we’ve got all the ingredients to make it work.” Gas is now undeniably a longterm game, with the LNG market continuing to grow and flourish. An increasingly strong player, Papua New Guinea is sitting comfortably in a prime location – on the doorstep of the world’s largest gas market. And as the pressure on coal continues, development projects such as PNG LNG and Papua LNG are very good news for the country indeed. Speaking recently, PNG’s Prime Minister, Peter O’Neill, said: “We envisage that the Elk-Antelope field has gas for at least two production trains, which would double PNG’s current production output. The progress being made in this advancement is very good news for the people in the Gulf Region and very good news for all Papua New Guineans.”
INTEROIL
BGP PNG Exploration Limited is a locally registered subsidiar y in Papua New Guinea of BGP Inc., China National Petroleum Corporation. We ha ve been in this countr y for more than four years, completed several projects in Wester n and Gulf Provinces, gained a lot of local exper ience and know PNG ver y well. The Antelope project for InterOil was our most challenging. Usually it is not easy to dr ill a 27 meter depth hole in mudstone. However it was much more challenging to complete loading in this project. Finally, we finished all holes in a high quality production wa y with BGP powerful por table dr illing r igs. And three component data were acquired firstly in Papua New Guinea as well.
BGP PNG is keen to provide our ser vices with high quality, cos t effectiveness and HSE s tandard compliance to the Oil&Gas indus tr y and develop our selves together with the local communities .
Contact person | Mr.Chen Bingwen Mobile | 00675-73239172 Email | chenbingwen@bgp.com.cn Website | www.bgp.com.cn PAGE 37
Charging ahead with energy solutions Editorial: Abigail Saltmarsh
The largest electricity supplier in Sri Lanka, Ceylon has announced its intention to increase renewable energy capacity and new measures to encourage the use of electric cars - “We have a positive approach to green energy like wind, hydro, solar and biomass and there is a lot of encouragement from the government here to go for greener and cleaner energy.�
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CEYLON ELECTRICITY BOARD
© Ceylon Electricity Board
The Ceylon Electricity Board (CEB) has long had a policy of developing environmentally compatible and energy efficient solutions. Now its pursuit of
for 2015 to 2034, announcing ambitious targets for significantly increasing renewable energy capacity. The utility has also been given
on the country’s road will be eased and emissions greatly reduced. General Manager, Chandrasiri Wickramasekara, says the utility is constantly striving to improve
minimising environmental impact and contributing to sustainable development has taken several more very decisive steps forward. The electricity supplier has recently published its Longterm Generation Expansion Plan
the green light by Sri Lanka’s energy regulator for a new “Time of Use” (TOU) tariff, which aims to encourage consumers to use electricity during off-peak times to charge electric vehicles. The hope, therefore, is that traffic congestion
its green credentials through innovative solutions and new approaches. Now these latest announcements will only serve to set it ever more firmly on its course towards achieving sustainability and encouraging customers to
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subsidiary company, overseeing it in certain urban areas.
BUILDING A FUTURE Although Sri Lanka relies mostly on oil, hydro power and increasingly, coal, generation to meet the country’s electricity demand, it has looked to the possibility of introducing far more renewable energy sources through a recently published Long-term Generation Expansion Plan.
ard y Bo © Ceylon Electricit
conserve energy. “We have a positive approach to green energy like wind, hydro, solar and biomass and there is a lot of encouragement from the government here to go for greener and cleaner energy,” he says.
A STATUTORY OBLIGATION The CEB was established in 1969, with the aim of controlling, generating, transmitting, distributing and selling electricity throughout Sri Lanka. It has a market share of 100%. From its foundation, it has had a statutory obligation to develop and maintain an efficient, coordinated and economical system of electricity supply for the whole of Sri Lanka. It is required to generate or acquire sufficient amount of electricity to satisfy demand and to plan its development activities in order to provide reliable, quality electricity to the entire nation at affordable prices.
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The utility initially started developing its grid with hydro power but then began to establish small thermal plants. By the 1980s, it was developing and operating heavy power plates. Today CEB is also involved in a joint venture with India’s National Thermal Power Corporation (NTPC), the Trincomalee Coal Power Project, which has a plant at Sampoor, and sees a total of 900MW coming from coal. It was in 1990s that CEB began contracting and buying power from independent producers; some of this power was coming from oil plants and some from hydro. Today more than 200 hydro power plants are connected to CEB’s grid and close to 1,000MW are created by these independent producers, giving the utility a total storage capacity of 4,000MW and a transmission voltage of 132 to 220Kv across the whole island, according to Mr Wickramasekara. Much of the distribution is owned and operated by CEB, with Lanka Electricity, a private,
“Sri Lanka is blessed with the renewable energy sources, which can be utilised to fulfil energy requirements of the country”
This report presents the generation expansion planning studies carried out by the Transmission and Generation Planning Branch of the Ceylon Electricity Board for the period 2015 to 2034. It includes information on the existing generation system, generation planning methodology, system demand forecast and investment and implementation plans for proposed projects. It also looks at whether Sri Lanka can realistically expect to reach a target of 20% renewable energy contribution by the year 2020.
CEYLON ELECTRICITY BOARD At the end of 2014, Sri Lanka’s installed power generation capacity was 3.9 GW, of which 442 MW was based on renewable energy capacity, dominated by mini-hydro power technology. Renewable energy capacity had a share of over 11% in installed capacity as well as generation. The CEB believes it can increase the renewable energy capacity to 972 MW by 2020, which would contribute 20% to the total power generation in the country. Renewable energy’s share in power generation is expected to peak in 2025 at 21.4% with an installed capacity of 1,367 MW.
GREAT POTENTIAL To achieve the demanding targets, the country is driving hard to step up in its renewable energy
development plans on all fronts. But, as the CEB points out: “Sri Lanka is blessed with the renewable energy sources, which can be utilised to fulfil energy requirements of the country. Ceylon Electricity Board as a power utility of the country has promoted generation of electricity using renewable energy resources since early 90s by giving the required assistance to the private sector, which includes training and capacity building, prefeasibility studies and resource assessments.” The government has identified the development of renewable energy projects as a matter of policy and aims to diversify the electricity sector from high cost thermal power generation, reduce generation from fossil
fuels and to focus more on solar, wind and biomass sources. Even more significant investment opportunities are expected to be created within renewable energy as part of the drive. Sri Lanka already has a very generous feed in tariff rates for grid connected renewable energy projects. Wind is considered to be one of the most promising of Sri Lanka’s renewable energy sources. Sri Lanka’s wind climate is primarily determined by the two Asian monsoons: the South West and North East. The South West monsoon lasts from May till early October while the North East monsoon lasts from December to February. The South West is the stronger of the two and is felt along the entire west coast of Sri Lanka, as
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Š Ceylon Electricity Board
well as in interior areas and some mountainous regions. Winds over flat landscapes in the southeastern and north-western coastal belt are more consistent and occur during both monsoons. But overall it is believed the country does exhibit very favourable conditions for harnessing wind energy for large-scale electricity generation.
TREMENDOUS POTENTIAL The geo-climatic settings in Sri Lanka are also particularly conducive to harnessing hydro resources. The two monsoons are responsible for distinct seasonal rains, which combined with the humid conditions and the hilly terrain, the highlands of Sri Lanka offer excellent opportunities to harness hydropower to generate electricity. The development of the small hydro power sector in Sri Lanka is
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widely considered to be a success story. The small hydro industry is typically characterised by hydro power projects with capacities less than 10MW. The economically feasible small hydro potential in Sri Lanka is estimated to be 400 MW. When it comes to solar, Sri Lanka is situated close to the equator and therefore receives an abundant supply of solar radiation year round. Solar radiation over the island does not show a marked seasonal variation, and a substantial potential exists in the dry zone of the country for harnessing solar energy. Biomass is the most common source of energy supply in the country, with the majority of usage coming from the domestic sector for cooking purposes. Due to the abundant availability, only a limited portion of the total biomass usage is channelled through a market,
with the most common forms being fuel wood, municipal waste, industrial waste and agricultural waste. Again, the potential here is believed to be tremendous.
A NEW TOU TARIFF As the CEB moves forward in its goal for more renewable energy and a higher level of sustainability, the aim is to have a multifaceted approach. This includes encouraging customers to make their own choices to benefit the environment of the country as a whole. In order to encourage the use of electric vehicles, for example, the utility has just announced the approval by the Public Utilities commission of a new optional TOU tariff for any domestic consumer with a three phase 30A or above supply. This is now being implemented
CEYLON ELECTRICITY BOARD within the country and any domestic consumer interested in it can request it from their service provider (either the CEB or the Lanka Electricity Company). The TOU tariff has been established with the multiple purpose of benefitting domestic users, reducing power usage during peak times and promoting power usage during off peak times. In particular, the hope is that it will encourage the use of electricity during off peak times for charging electric vehicles in a bid to reduce congestion and emissions on Sri Lanka’s roads.
The annual estimated loss due to traffic congestion in Sri Lankan roads is around 40 billion rupees per year. The new tariff sees individual consumptions during three time blocks separately metered and charged. There are “Off Peak” (10.30pm to 5.30am of the following day), “Day” (5.30am to 6.30pm) and “Peak” (6.30pm to 10.30pm) blocks. “Unlike the prevailing block tariff structures for domestic consumers, under this new TOU tariff, there is only a single tariff within each time block,” the
CEB points out. “And in order to facilitate Electric Vehicle Charging, a low off peak tariff of 13 rupees per unit (kWh) has been offered for seven hours starting from 10.30pm. A higher tariff of 54 rupees has been charged for the four peak hours from 6.30pm and a tariff of 25 rupees a unit has been charged for the remaining 13 hours of the day.” Mr Wickramasekara adds: “We are committed to helping our valued customers to use energy efficiently, save more money and improve our environment for a better future.”
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Cross-border electricity highways and innovative super cables Editorial: Abigail Saltmarsh
With 21,000km of high-voltage lines, TSO TenneT crosses borders and works closely with governments, NGOs, trading partners and investors all over the world to find powerful solutions to ensure a reliable and uninterrupted supply of electricity for its millions of end users. Leading European electricity transmission operator (TSO), TenneT, rides on the maxim of “taking power further” and now once again is cementing its commitment to its 41 million end users by pledging to continue to
transmission capacity between the Netherlands and five connected countries, which will secure the long-term domestic Dutch supply. It also states it is working on further expansion of import
same time period. The report is published just weeks after the TSO announced a world first – that it was planning to install two to four km of underground superconducting high-voltage cable as part of the
go the extra mile. The operator, which ranks among Europe’s five leading TSOs, has published its latest Security of Supply Monitoring Report, announcing a growth in cross-border electricity
and export capacity and that it expects electricity production capacity of conventional power plants to decrease by 20% between now and 2022, with wind and solar capacity increasing by 360% within the
Dutch electricity grid. TenneT’s mission is to provide security of electricity supply in the markets it serves and to pursue the development of an integrated and sustainable northwest European electricity market.
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TENNET
CEO Mel Kroon says: “With this project, we are meeting society’s demand to install more highvoltage lines underground. With these superconducting cables, it should become easier in future to integrate high-voltage lines in urban areas.”
TenneT BV has activities in the Netherlands and Germany. It is headquartered in Arnhem, with regional offices in Waddinxveen, Weert and Hoogeveen, and offices in Germany.
services by constructing and maintaining a robust and efficient high-voltage grid. It also provides system services by maintaining the balance between supply and demand of electricity and it facilitates a smoothly functioning, liquid and stable electricity market. The publication by the TSO of its latest annual Security of Supply Monitoring Report outlines its continuing goals towards ensuring the security of its supply and its commitment to the large-scale use of renewables
strong growth in renewable electricity production in our part of Europe, to compensate for fluctuations in the supply of green electricity generated from wind and solar energy, and to compensate for the loss in production capacity due to the decommissioning or mothballing of gas and coal-fired power plants,” says Mr Kroon. “National borders can only serve as obstacles to a successful transition to a renewable energy supply. We need closer collaboration
With around 21,000km of high-voltage lines, it crosses borders and works closely with governments, NGOs, trading partners and investors all over the world. Its main duties are to provide power transmission
by expanding cross-border transmission capacity and improving links with other TSOs. “TenneT will continue to develop links with markets in other countries, in order to maximise the benefits of the
between north-west European TSOs as well as interconnectors and links between electricity systems in order to safeguard the security of electricity supplies, import cheap energy, and facilitate the transition to a more
DEVELOPING LINKS
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sustainable energy market.”
EXPANDING CAPACITY The Dutch grid is already closely linked to the grids of other countries through onshore and subsea electricity connections, known as “interconnectors.” TenneT is planning to realise a further expansion of cross-border transmission capacity in the coming years, he suggests. “These interconnectors have an economic life of at least 40 years and offer a relatively quick return on investment. They establish links between the electricity markets of different countries. Interconnectors benefit everyone
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“TenneT will continue to develop links with markets in other countries, in order to maximise the benefits of the strong growth in renewable electricity production in our part of Europe”
in the Netherlands, since they enable us to import cheaper renewable electricity or export it when prices are higher in another market.” The BritNed cable between the Netherlands and the UK, which was taken into operation in 2011, has a capacity of 1,000 MW and is mainly used to export electricity. In contrast, the NorNed cable between the Netherlands and Norway, which became operational in 2008 and has a capacity of 700 MW, largely imports renewably generated electricity. The Netherlands’s maximum import and export capacity currently totals 6,000 MW. TenneT plans to expand this capacity by 3,400 MW to reach 9,400 MW by 2022, an increase of 57%. The plan is that this will be
TENNET achieved through a number of projects. These will include Doetinchem-Wesel, a 1,500 MW onshore interconnector between the Netherlands and Germany, and COBRAcable, a 700 MW subsea cable between the Netherlands and Denmark. The TSO will also see expansion of the capacity of the existing Meeden-Diele interconnector by up to 500 MW and an increase in the import and export capacity between the Netherlands and Belgium by up to 700 MW.
CHANGES AHEAD According to the report, supply of electricity generated by conventional power plants will decrease over the coming years. As Mr Kroon suggests, total thermal production capacity will decrease due to the decommissioning and conservation of gas and coalfired power plants; operational thermal production capacity is expected to decrease by over 5,000 MW during the period until 2022. “At present,” states the report, “the operational thermal production capacity totals nearly 25,000 MW but this is expected to fall by approximately 20% to 20,000 MW in 2022. “Wind and solar generating capacity is expected to rise dramatically, from 4,200 MW today to over 15,000 MW in 2022. This corresponds to an increase of no less than 360%. “However, the growing share of wind and solar energy will not result in a substantial improvement of the security of supply given the inevitable fluctuations in supply due to weather conditions. Local
storage, demand response, and closer cross-border integration will provide the flexibility to maintain the security of supply at its current high level.”
A TECHNOLOGY LEADER A s Te n n e T ri se s t o t h e c h a l l e n ge s of t h e f u t u re a n d l ook s f or sol u t i o n s t o h e lp it c on t i n u e t o m e e t it s o b lig a t io n s i n t ra n sm i ssi on , c o n n e c t io n a n d su ppl y, i t s a i m i s a ls o t o re m a in a l e a de r i n t e c h n o lo g y. Th e u n de rgrou n d su pe rc on du c t i n g h ig h - v o lt a g e c a bl e de m on st ra t io n p ro je c t i s t h e l a t e st i n a n u m b e r o f
re c e n t p io n e e r in g p ro je c t s : Te n n e T h a s a ls o d e v e lo p e d t h e in n o v a t iv e n e w W in t r a c k p y lo n ; h a s a p p lie d h ig h - v o lt a g e d ire c t c u r re n t t e c h n o lo g y o n a la r g e s c a le t o c o n n e c t o ff s h o re w in d f a r m s t o t h e o n s h o re g r id a n d is p la n n in g t o u s e n e w 6 6 k V c o n n e c t io n s t o c o n n e c t f u t u re o ff s h o re w in d f a r m s in t h e N e t h e r la n d s . I n a d d it io n , t h e T SO is t a k in g t h e le a d in t h e u n d e r g ro u n d in s t a lla t io n o f h ig h - v o lt a g e c o n n e c t io n s . Te n n e T w a s t h e f ir s t T SO t o c o n s t r u c t a 2 0 - k m lo n g s e c t io n o f 3 8 0 k V c a b le , a n d is in v e s t ig a t in g a d d it io n a l
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pos si b i l i ties in t his area. The i n st allat io n of t he t w o t o f o ur km of underground h i gh t e mp erature superconduc t i n g (H DS C ) c able as par t of t he Du tch elect ricit y g rid c omp l ement s t hese a ch i evem ent s: a sect io n of s u p erconduct ing cable o f t hi s l en gth has no t yet b e e n
h i gh -vol t a ge c a bl e s. B e c a u s e a su pe rc on du c t i n g c a b le is c ool e d t o a t e m pe ra t u re o f a pproxi m a t e l y m i n u s 2 0 0 de g C, i t h a s n o e l e c t r ic a l re si st a n c e a n d c re a t e s n o e l e c t ri c i t y l osse s . T h e su pe rc on du c t i n g st a t e i s a c h i e ve d by m e a n s o f re fri ge ra t i on u si n g l i q u id
n o h e a t , s o t h a t a 3 m w id e s t r ip w ill p ro b a b ly b e s u ff ic ie n t . I n a d d it io n , H T SC c a b le s d o n o t g e n e r a t e a n y m a g n e t ic f ie ld .
i ns tal l ed anywhere else i n t h e worl d . S u p erc o nduct or s can t r an smi t up t o a t housand t imes mo re elect ricit y t ha n c op p er, the main mat er ia l c u rrentl y used in under grou n d
n i t roge n . Th e 150 k V c a bl e s c u r re n t ly i n u se re qu i re a st ri p o f s o il o f a t l e a st 12m w i de t o d is s ip a t e t h e h e a t ge n e ra t e d. H T SC c a bl e s c a n be l a i d m u c h c lo s e r t oge t h e r be c a u se t h e y g e n e r a t e
and the length of the relevant cable section generally does not exceed one km. In 2009, a 600m section of HTSC cable was installed in New York, and in 2014 a one-km length of superconducting cable was taken
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A SUPER SOLUTION HTSC cables are already used on a small scale in other countries, but they are usually not part of the meshed high-voltage grid
TENNET into operation in Essen, Germany, to replace a 10 kV mediumvoltage line. The demonstration project to be undertaken by TenneT involves a cable section of two to four km. The TSO does not expect superconducting cables will be able to be applied in current projects. Further research must be conducted and additional experience gained before such a step can be taken, it suggests. Initially, it will only be possible to use superconducting cables in sections of up to four km. For the time being, longer sections cannot be realised because of the nitrogen supply required to cool the cable. Superconducting cables are also expensive, costing approximately three times as much as a standard 110 kV or
“Wind and solar generating capacity is expected to rise dramatically, from 4,200 MW today to over 15,000 MW in 2022”
150 kV cables. However, the technology is developing quickly and it is expected that it will be possible to use them more widely and across longer distances in future, thanks to improved cooling methods and mass production. Currently, TenneT is determining the location of the first “super cable” – a suitable demonstration site where the cable can be taken into operation for the first time and then the TSO will be able to push ahead with its ground-breaking project. “This is highly innovative technology,” stresses Mr Kroon. “The results of this demonstration project will show whether cables of this type can be used more widely in future.”
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GROW YOUR GRID PAGE 49
Š Valentine Maritime
Valentine Maritime expertise A leading EPC offshore construction company in the Middle East, Valentine Maritime was established in 1990 and today, specializes in the construction of topsides, wellhead platforms, submarine pipelines and maintenance services to the offshore industry. Enhancing its capacity further with the recent launch of its new yard, VM is now able to successfully fabricate offshore jackets, topsides and modules for the oil & gas sector.
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VALENTINE MARITIME Whilst the demands of the O ff s h o re C o n t r a c t o r m a r k e t may have evolved somewhat s i n c e Va l e n t i n e M a r i t i m e L t d ’s i n c e p t i o n i n 1 9 9 0 , w h a t h a s n ’t c h a n g e d i s t h e V M ’s ability to fulfill these to the highest quality possible. Initially serving the Oil and Gas industry in the Middle East G u l f R e g i o n , Va l e n t i n e M a r i t i m e has since expanded beyond i t s b e g i n n i n g s i n t o a re a s such as Saudi Arabia, India, the east coast of Africa and Mediterranean and Black Sea. Primarily specializing in E P C O ff s h o re C o n s t r u c t i o n o f wellhead platforms, submarine pipelines, topsides, and maintenance and hookup
services, VM has emerged a s a re s p e c t e d E P C O ff s h o re C o n t r a c t o r i n t h e re g i o n . V M has successfully executed E P C p ro j e c t s w o r t h m o re than $2 billion over the last 20 years, working for major Clients such as ONGC in India, Saudi Aramco, Reliance I n d u s t r i e s , O X Y, Q P e t c . A s p e r M r. N . Z e e n n i , P re s i d e n t o f V M G ro u p : “ O u r s p e c i a l t y l i e s i n l a y i n g O ff s h o re r i g i d a n d f l e x i b l e p i p e l i n e s . To d a t e w e h a v e l a i d m o re t h a n 1200 kilometers of Pipeline r a n g i n g f ro m 4 t o 4 8 i n c h e s in diameter in water depths r a n g i n g f ro m 0 m e t e r s t o o v e r 1 0 0 m e t e r s . We h a v e a l s o i n s t a l l e d n u m e ro u s o ff s h o re
Single Point Mooring (SPM) b u o y s a n d t h e i r re l a t e d pipelines”. Va l e n t i n e M a r i t i m e h a s also been known to bring its e x p e r t i s e t o O ff s h o re h o o k u p s , Jacket and Deck Installations, P i l i n g a n d G ro u t i n g O p e r a t i o n s .
A NEW YARD Va l e n t i n e M a r i t i m e i s i n t h e process of constructing a new fabrication yard to underpin its current operations. Construction work on the new 170,000 square meters fabrication yard and marine base is currently ongoing and is expected to be completed and operational by end of 2016.
© Valentine Maritime
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The idea behind this move is to allow the company to expand into the fabrication market as well, which will enable it to provide its clients with a one-stop-shop for their needs not only installation of offshore structures but also their fabrication too. This will obviously bring many a d v a n t a g e s t o V M ’s C l i e n t s a s it will be able to completely control the costs and delivery times of these structures without having to rely on subcontractors. Furthermore, the company will also be constructing a bigger office to house its existing staff as well as expand its departments with additional talent. The additions to the infrastructure which will no d o u b t s t r e n g t h e n Va l e n t i n e
M a r i t i m e ’s m a r k e t p r e s e n c e ; there are also many inter nal factors that have contributed t o V M ’s s u c c e s s t o d a t e . The strength of VM lies in its upper management which has over 40 years of experience each in the field of oil and gas. This experience plays an extremely important role when it comes to the pricing and e x e c u t i o n o f V M ’s p r o j e c t s . I t i s t h e c o m p a n y ’s e x t r e m e l y competitive pricing which has allowed it to claim quite a few major projects over the years.
SUCCESSFUL HISTORY, POSITIVE FUTURE In addition, VM has provided chartering services for more than 20 years, acquiring its first major marine asset, the Regina 250, Derrick Lay
Barge in June 1992. By 2012, the VM had acquired a large fleet of 11 construction vessels and increased its level of specialized, highly skilled personnel in line with robust growth and the substantial rise of assets and revenues. VM currently owns and operates 3 pipelay barges, 2 work barges, 3 cargo barges, and 3 tugboats. The most recent addition to the fleet is a DLB Pipelay barge, which boasts 1600-tonne revolving crane onboard that will enable VM to lay larger pipelines in deeper waters and develop a presence in the heavy-lift market. The DLB 1600 proved its capabilities in 2013 by successfully completing installation of a 900 T jacket and 600 T deck for the
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VALENTINE MARITIME ‘Hilal B-Jacket and deck offshore installation project’ for Gulf of Suez Petroleum VM (GUPCO) in Egypt. No stranger to challenges, VM successfully completed Saudi Aramco Manifa Pipeline development worth $420 Million which included the laying of subsea rigid and flexible pipelines, subsea power and fibre optic cables and the installation of fabricated steel structures. VM has recently completed the installation of the longest HDPE liner installation in Qatar for OXY. This project was unique and significant, being the longest and largest outside diameter HDPE pipeline pulled in a single string for Offshore facility. Currently, Valentine Maritime is executing two major Offshore Pipeline Projects - one in the UAE and one in India involving total pipelay in excess of 400km.
“To date we have laid more than 1200 kilometers of Pipeline ranging from 4 to 48 inches in diameter in water depths ranging from 0 meters to over 100 meters”
Committed to executing a w a rd e d p ro j e c t s w i t h m a x i m u m e ff i c i e n c y, V M h a s e x p e r i e n c e d s t e a d y g ro w t h over last 20 years. The VM is maintaining its plans to achieve f u r t h e r g ro w t h i n t h e f u t u re . With an established history of successfully executing p ro j e c t s , t h e f u t u re l o o k s bright for VM. VM is accredited with ISO 9001:2008, OHSAS 18001:2007 and ISO 14001:2004 and it continues its commitment to meet and exceed the requirements of its clients, to improve the competence of its employees through skills development, open dialogue between personnel to encourage the exchange of expertise and also a strong team spirit
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High sustainable standards Editorial: Rosie DeWinter
September proved to be a busy month for Swire Pacific Offshore (SPO), with the delivery of its fourth G-Class series Platform Supply Vessel, Pacific Grackle. Joining SPO’s growing and impressive fleet of vessels, it is hoped this new addition will prove to be a valuable asset in providing a reliable and efficient service for the company’s global client base. In April this year, Swire Pacific Offshore (SPO) was awarded the SRS Shipowner of the Year at the Singapore International Maritime Awards held at The Ritz-Carlton, Millennia Singapore. Set to recognise individuals and
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companies for their contributions to Singapore’s development as a premier global hub port and international maritime center, it is held during the prestigious Singapore Maritime Week (19th-24th April). Neil Glenn, Managing Director at
Swire Pacific Offshore said of the award: “Winning the SRS Shipowner of the Year award is a great honour for SPO as we celebrate our 40th anniversary this year. I would like to thank the MPA and their distinguished panel of judges for the award and take
SWIRE PACIFIC OFFSHORE
© Swire Pacific Offshore this opportunity to thank all the teams at SPO, at sea and ashore, for their hard work, dedication and contribution to the success of the company.” A subsidiary of one of Hong Kong’s largest employers, Swire Pacific, SPO is a leading provider within the offshore oil and gas industry with more than 35 years of experience within the operations field. Boasting a strong global footprint, the company is now present in all major oil exploration regions outside the USA with offices in Brazil, Norway, Angola, Australia and Scotland. Its recent accolade at the Singapore International Maritime Awards is
“Winning the SRS Shipowner of the Year award is a great honour for SPO as we celebrate our 40th anniversary this year”
a first for SPO and recognises the company’s 40th anniversary celebrations. In light of this industry milestone, SPO lined up a number of engagement programs and community projects, hosting two exclusive guided tours for 50 industry partners in March this year. Those invited were able to see on-board the newly launched vessels, Pacific Goldfinch and Pacific Centurion at the Loyang Offshore Supply Base.
A GROWING FLEET September was a busy month for Swire Pacific Offshore, welcoming the delivery of its latest Platform Supply
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©S w i re P a c i f i c O ff s h o re
Vessel (PSV), Pacific Grackle in Japan on 17th September. The latest addition to the company’s growing fleet, the G-Class series has been specially commissioned to meet the ever increasing market demands for PSVs. Powered by a four-engine diesel electric propulsion plant, the vessels, with 4,000-ton deadweight, are fully equipped with highly efficient counter rotating azimuth thrusters which help to ensure fuel efficiency. Glenn explains: “We are pleased to welcome Pacific Grackle to our growing fleet of vessels. We are confident that Pacific Grackle will be a valuable asset and will join its sister vessels in providing efficient and reliable services to meet the current and future needs of our global clients.” Commissioned to Japan Marine United Corporation (JMU), Pacific Grackle now stands as the fourth of ten vessels in SPO’s G-Class series, with sister vessels Pacific Goldfinch, Pacific Gosling and Pacific Gannet all delivered to SPO earlier this year in
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March, May and September respectively. Once Swire Pacific Offshore completes its ten-vessel fleet, it will become one of the top ten PSV fleet owners in the world. Owning and operating a diverse and impressive fleet of 92 vessels, SPO has 19 classes of vessels which includes; Anchor Handling Tug Supply (AHTS) vessels, PSVs, Ice-Breaking Supply Vessels, Seismic Survey vessels and Windfarm Installation vessels. 2014 saw the delivery of two D-Vessels to SPO, representing an important and significant investment for the company, these will help to support the latest generations of high specification semi-submersible rigs operating in much harsher and deeper offshore environments. Launching its seventh D-Class vessel, Pacific Dispatch, two years ago, Glenn explains the significance of this vessel: “The launch of Pacific Dispatch is another important step for the company as we continue to develop our fleet of high specification anchor handling tug supply vessels. The D-Class series has enjoyed a successful entry into service and each
new vessel allows us to extend its presence across our key markets, supporting our customers with safe, high quality performance and service.” The delivery of Pacific Dragon in April 2014 marked the completion of eight vessel D-Class series of 240T bollard pull, flexible and environmentally friendly, anchor handling tug of supply vessels by the company. Well equipped with technical capabilities, these vessels are designed to be fuel efficient, helping to reduce environmental impact on deployment tasks. “We are very pleased with their range of operational capabilities and safety and technical performance in serving the needs of our customers around the world,” Glenn said in a statement.
SWIRE SEABED A fully owned subsidiary of SPO, Swire Seabed has, earlier this year, placed an order for the acquisition of two Kystdesign Supporter WorkClass Remotely Operated Vehicles (WROVs) with Lidan Launch and Recovery Systems (LARS), due for delivery in February next year. A strong track record of undertaking and completing a wide range of subsea operations, Swire Seabed, headquartered in Bergen, Norway, boasts a team of highly experienced onshore and offshore industry specialists. “The decision to invest in these assets is part of Swire Seabed’s longterm growth strategy. Swire Seabed is not immune to the challenges low oil prices bring, however, the strength of SPO allows the company to continue investing in new assets. Being able to offer mobile ROVs to the market and integrating them into SPO’s global fleet set Swire Seabed apart from its main competitors. The new mobile WROV systems will strengthen Swire Seabed’s ability to provide subsea
SWIRE PACIFIC OFFSHORE services globally, reach into new market segments as well as allow us to continue to grow in the offshore oil and gas world,” explained Arvid Petterson, CEO at Swire Seabed. The company’s other mobile subsea assets include a 6,000m depth rated Argus Bathysaurus XL WROV, a Sperre Subfighter 15k observation ROV and the Seabed Excavator, dredging vehicle and a cutting-edge multi-purpose subsea tool carrier – all in addition to the six WROVs that are permanently installed on the company’s dedicated subsea vessels. Designed for harsh and challenging environments, both the WROVs and LARS can be seamlessly transported and mobilised on-board Offshore Support Vessels (OSV), helping to support Swire Pacific Offshore’s extensive fleet which has now reached more than 80 OSVs or third
party vessels which would benefit from a mobile WROV system.
AWARDED FOR SUSTAINABILITY In addition to its extensive fleet, SPO has established an impressive Net Zero Environmental Impact program. With strict health and safety regulations in place and a sustainable and environmentally conscious attitude, the company ensures its carbon footprint is moderated both in its offices and on board its ships at all times. Implementing its Swire Pacific Green Guidelines, its commitment to sustainable development was cemented in 2010 and 2012, receiving the Singapore Environmental Council Eco Office Certification which is valid for two years. The company’s pledge to implement sustainable practices was further recognised in 2013 at
the Sustainable Business Awards in the Large Enterprise Category: Singapore Sustainability Awards, which acknowledges a company’s actions to the economic, environmental and social aspects of sustainable developments. Speaking of the company’s dedication, Neil Glenn explains: “Swire Pacific Offshore is honoured to receive this award and appreciates the recognition by the Singapore business community. We are committed to run our business sustainably and believe that the long term value creation for our shareholders depends on the sustainable development of our business and the communities in which we operate. This award has allowed us to share our best practises and in doing so, we hope to encourage other companies to take actions that will benefit their company, the environment and their key stakeholders.”
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Powering progress Editorial: Annabelle Withering
© Elia
With a transmission grid covering 18,300 km of high-voltage connections, Elia has successfully cemented a prominent and enviable position within the European TSO marketplace. Playing a vital role in Belgian’s economy and environmental development, the company is proposing one large high-voltage substation to be located in the North Sea - creating a shared network solution for future offshore wind farm projects. Now serving 30 million endconsumers, Elia Group stands as one of Europe’s top five TSO players. A big driving force behind the development of the European electricity market, Elia transmits electricity securely, reliably and efficiently to distribution systems operators and large industry consumers, not to mention exporting electricity to and from Belgium’s neighbours.
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Earlier this year, Elia Grid International (EGI) and Siemens joined forces on the international energy market, in a bid to focus on sustainable development of high-voltage infrastructure in SubSaharan Africa. Entering into an agreement, both companies will identify, develop and implement potential high voltage projects in the EMEA region (Europe, Middle East and Africa), following approval
by the customer. Markus Berger, CEO of Elia Grid International, said: “As a supplier of high-voltage systems, Siemens is a familiar and valued partner of the Elia Group that shares the same values regarding the sustainable development, construction and management of energy systems. Because Siemens is so firmly established in African countries, EGI strongly believes in the added
ELIA value and business potential offered by our international cooperation.” The partnership between the two companies will overlook all phases of the project from initially identifying potential projects and customers to the consultancy and engineering aspects, before the final implementation of the highvoltage infrastructure is completed. The partnership looks to improve and upgrade the existing energy infrastructure and implement new and exciting projects. “We are very happy about the agreement with Elia, which has been a partner at local level for many years and with which we have developed a trust-based relationship. Thanks to the complementary nature of the product lines of both companies, we strongly believe that we can and will strengthen each other in this exciting field. Together we will ensure that the available energy gets to its destination - anywhere in the world - while paying close
attention to economic efficiency, climate, available local resources and public acceptance. In this way, we are drawing up a reliable energy roadmap for the future,” André Bouffioux, CEO of Siemens Belgium-Luxembourg said. An exciting venture for EGI, this partnership will help in boosting the international aspirations of the Elia Group. A wholly owned subsidiary of Elia Transmission in Belgium and 50Hertz Transmission in Germany, the company combines the best resources of two of Europe’s largest electricity transmission system operators, built on the solid foundations of expertise and reliability.
NEW MANAGEMENT In June this year Elia appointed Chris Peeters as its new CEO. With a strong background in engineering and management, Peeters gained a Master’s degree at the University of Leuven in Belgium in Civil Engineering. Spending more
than a decade – seven of those as a partner - with McKinsey & Company, Peeters specialised in the energy sector, before running the Business Consulting activities of Schlumberger in Europe, Africa, Russia and the Middle East. “Chris Peeters is a strong leader with an established track record and deep knowledge of the energy sector. His strategic and organisational talent form a solid foundation for leading the Elia Group in the coming years. We are looking forward to working with Chris. We see Chris as the right CEO for the Elia Group and are convinced that he will be a highly skilled partner for the regulatory authorities, the government and other stakeholders,” Miriam Maes, Chairman of the Board of Directors explains. “I am honoured to have been nominated as CEO of the Elia Group and am impressed by the expertise of its staff and its ability to deliver essential projects in Belgium
© Elia
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© Elia
and Germany,” Peeters said. “I am particularly excited about serving the Elia Group and leading the company through the challenges of the ongoing energy transition.” Becoming an independent limited liability company in 2001, Elia was appointed the federal transmission system operator in September 2002. Today, the company continues to play a vital role in Belgium’s energy transmission and in its economy, operating more than 8,000km of cable lines throughout the country, it ensures the smooth transmission of electricity from the generators, to the distribution systems, before reaching the end
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“We are reinforcing the existing highvoltage grid in West and East Flanders so that greater quantities of electricity can be transported from the coast inland”
consumer. Owning not only the entirety of Belgium’s 150 to 380 kV grid infrastructure but 94% of its 30 to 70 kV grid infrastructure too, Elia must ensure that the high-voltage grid is continually developed and maintained in order to meet the growing needs and future demands of the electricity market and consumer. Accommodating a growing share of electricity generated by renewable energy sources and strengthening European interconnections are just two of the major challenges Elia must overcome.
ELIA NORTH SEA PROPOSAL In an attempt to counteract these, Elia has plans to develop an offshore ‘power socket’ in the North Sea which will help to ensure wind farms in this popularised region are all connected to a single high-voltage substation rather than current individual connections. This new proposed single substation would be installed on an offshore platform before being connected to the onshore grid. Aside from the economic and technical benefits of this proposal, the shared connection solution will be environmentally beneficial for the wind farms still due to be built. Discussing plans with the operators of Northwester II, Mermaid, Rentel and Seastar, the long-term objective of this proposal is to concentrate all available electrical capacity at one set point located offshore, allowing all generated energy to then be transmitted to consumption centers via the offshore direct-current infrastructure which will be built. Following this, Elia will then lay the foundations for a vast direct-current offshore grid in Europe.
Flanders so that greater quantities of electricity can be transported from the coast inland. We are also installing new overhead and underground connections, and dismantling 53 km of old lines which will be replaced by a 35-km underground system once the new connections are operational,” the company explains. Building three high-voltage substations at Zeebrugge, De Spie and Vivenkapelle, the Stevin Project will allow for additional decentralised electricity generation in the coastal region, including wind, solar and alternative sustainable energy sources to be
connected to the grid. Venturing further afield outside of Belgium - the Nemo Link® interconnector consists of subsea and underground cables which will connect to a converter station and electricity substation in Belgium and the United Kingdom - allowing electricity to flow in either direction between these two countries. This interconnector, in addition to Elia’s many upgrades and expansion projects, will help in increasing demand and the essential development of the European electricity market for many years to come
Fibre optic engineering, construction & maintenance
STEVIN PROJECT In a bid to upgrade the high-voltage grid between Zomergem and Zeebrugge, the Stevin Project will allow wind power to be brought from offshore wind farms to the mainland before it is transported throughout Belgium. The project involves the extension of the 380 kV grid which, in turn, will support electricity supply substantially in West Flanders, helping to facilitate further economic development and strategic growth areas surrounding the Zeebrugge port. “We are reinforcing the existing high-voltage grid in West and East
Lindestraat 19B B-9240 Zele T+32(0)52 22 67 07 F+32 (0)52 22 67 37 info@nettech.be www.nettech.be Westwood House Annie Med Lane South Cave East Yorkshire HU15 2HG T+44(0)7598 941 381 www.nettechuk.com
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The world’s biggest offshore wind farm? Editorial: Rosie DeWinter
With a total construction budget estimated at €3 billion and more than 20 project parties involved, 70% of this budget will be provided on the basis of project financing, placing Gemini as the largest ever project financed offshore wind farm when it becomes operational in 2017.
© Van Oord
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GEMINI WIND FARM With construction already underway in the Dutch regions of the North Sea, the 600MW Gemini Wind Farm – set to start full operations in the summer of 2017 – is expected to be one of the world’s biggest offshore wind farms on completion. Built off the coast of the Netherlands, Gemini will consist of two parts: the first section will consist of 75 wind turbines and will be located north of Ameland while the second section will be located 55km north of Schiermonnikoog, also consisting of 75 wind turbines. All 150 turbines will have a capacity of 4MW and will be supplied by Siemens – the company’s first order for an offshore wind power plant in Dutch waters. With a rotor diameter of 130km and a blade length measuring 65m, the turbines will also be equipped with high-wind ride through (HWRT) technology, enabling the rotor blades to operate at high wind speeds with minimal exposure to the strong wind elements. In addition to supplying the 150 wind turbines, Siemens will also provide a 15-year service and maintenance agreement for the project - the largest service order for Siemens Energy Service. A helicopter will be available at all times and a specially designed, purpose-built service operation vessel (SOV) will also be based at the wind farm and to ensure increased turbine availability, maintenance work can be carried out, irrespective of the weather conditions or wave height, at all times.
service business underscores confidence in the highly advanced and innovative service logistics concept we created for Gemini, which is a direct result of the significant investments we make in R&D and the years of experience we have as the world’s leading offshore service provider,” Randy Zwirn, CEO of Energy Service for Siemens Energy explains. In a project estimated to cost €2.8 billion – project developers have assured of its renewable potential – producing up to 2.6TWh of clean and renewable energy to be used by over 785,000 households. And with a prediction to offset 1.25 million tons of carbon dioxide emissions every year, the project has additional regional benefits, creating 500 construction jobs and a further 120 operations and maintenance jobs.
Construction for the Gemini wind project began earlier this year with the first monopile installed by project operator, Northland Power – who own 60% of the project, followed by Siemens (20%), Van Oord (10%) and HVC (10%). Van Oord’s installation vessel, Aelous successfully installed the milestone: “We are pleased that after fourteen months following the financial close, the first Gemini monopiles are being hammered into the seabed, exactly as per the original planning,” CEO, Pieter van Oord explains. With a total length of 65m, each
850-tons and will be supported by structures driven into the sea bed by two new ships supplied by Van Oord, specially constructed for the Gemini offshore wind project. “The placement of the first monopile is a special moment for everyone involved in the project. The deployment is a milestone in the construction phase as planned and made possible by the close cooperation between project partners,” Gemini Chief Executive, Matthias Haag said. Van Oord completed the installation of the second offshore high voltage substation (OHVS) at the Gemini project site in August with construction ‘proceeding as planned’ - both substations and the first 77 transition pieces are now in place. Built in Hoboken, Belgium, the large 2500-ton OHVS installations were transported to Eemshaven before being deployed to the North Sea project site for installation. Once installed, these platforms will convert the generated energy to 220 kV and are connected to the Dutch power grid via export cables. Just last month, the offshore installation vessel, Pacific Osprey - a 161 meter, six-legged jack-up - completed the installation of the 100th pile at the Gemini project location. Involved in the wind farm project in two ways then, Van Oord is a project shareholder with 20% and EPC contractor. In a total estimated value of €1.3 billion, the company’s contract involves the supplying and installing of the foundations, the
“Wind energy is becoming increasingly important to the world’s energy mix. Therefore wind turbines need to operate at optimum levels over their entire service life. This record achievement for our offshore wind
monopile will have a diameter of 7.5m with an overall thickness of 7cm. 30m of the length will be driven into the sea bottom, in sea depths at the site expected to range from between 28m and 36m. Each monopile will weigh up to
whole electrical infrastructure which includes the offshore and onshore high-voltage stations, cables and installing the 150 SW4.0-130 wind turbines. Van Oord will also deploy the scheduled offshore wind turbine
ALL HANDS ON DECK
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© Van Oord
transport and installation vessel, Aeolus to install the remaining 73 foundations for the project. The Van Oord vessel fleet are playing a vital role in the construction of this wind farm – the cable-laying vessel, Nexus, is responsible for the installation of the two export cables. Each measuring 100 km long, both will be buried in the seabed by the Jan Steen, a multi-purpose vessel which has been fitted with a larger subsea trencher. HAM 602, the cable-laying vessel, will install the cables between the foundations and the OHVSs and the Jan Steen vessel will bury these with the trencher. “Gemini demonstrates the added value of the Dutch offshore industry and illustrates Van Oord’s leading position in the market for offshore wind parks. The team of the shareholder are highly qualified and form a solid consortium that
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“Gemini demonstrates the added value of the Dutch offshore industry and illustrates Van Oord’s leading position in the market for offshore wind parks”
will advance the development of sustainable energy in the Netherlands. The project is also an important step forward in meeting the climate objectives of the Dutch government,” Pieter van Oord explains. With the award of the Gemini project producing €1.3 billion in turnover, Van Oord became one of the major players in the European offshore wind industry this year and with a healthy order portfolio valued at €3.222 billion at year-end 2014, this is a significant increase on the previous year ending €1.944 billion. And with a continued focus on its three current activities dredging, offshore oil & gas and offshore wind - Pieter van Oord explains: “This strategy is aimed at both strengthening and investing in our position in our existing main activities. In addition to the investments in new vessels, the acquisitions of J.T. Mackley & Co.
GEMINI WIND FARM (United Kingdom), the staff and equipment from Ballast Nedam Offshore, and all of the shares in Dravo S.A. (Spain) in 2014 fit right into this strategy.” Financing of the Gemini Wind Farm sees all shareholders – Northland Power, Siemens, HVS and Van Oord investing an estimated €500 million – with Northland Power and PKA, a Danish pension fund, also providing subordinate loans of €80 million and €120 million respectively. Further loans which totalled more than €2 billion were received from export development agencies, banks and credit insurance companies.
PROJECT TRANSMISSION Transferred to two offshore substations via a network of cables, the 33kV electricity set to be generated by the 150 wind
turbines will then be converted into a 200kV alternating current (AC) which will be transported by the two 120km export cables to the transformer station located in Eemshaven. The 200kV AC power section will be stepped up to a high-voltage current of 380kV before it is transported to Oude Schild through cables where it will then be transmitting to the National Grid. 85% of the power produced will be brought by Zeelands-based energy company Delta with the remaining 15% supplied to HVC, who own 10% shareholding. NKT Cables signed an agreement to manufacture the transport cables and Smulders Project was awarded the contract for the transition pieces. Energy Solutions (Ensol) were contracted to design the electrical infrastructure with EEW supplying the special pipes and Euskal Forging awarded the complete flange supply
for the 150 monopiles, TP and MP flanges for the project. Once the Gemini Wind Farm project becomes operational in 2017, it will receive a subsidy from the government which will cover the difference between the cost price of the renewable energy produced and the market price of non-renewable electricity – eligible for a maximum subsidy of an estimated €4.4 billion over the course of 15 years. “With project financing and all building and supply contracts now in place, our focus has already shifted to the construction phase. We have assembled a team of experts in the offshore wind industry, and will be working closely with Northland Power, Siemens and Van Oord to make offshore wind power a vital and significant part of the Netherlands’ electricity supply,” explains Matthias Haag
EUSKALFORGING RING ROLLING THE OFFSHORE WIND Euskal Forging awarded the complete flange supply for the 150 Gemini Joint Flange Monopiles, TP and MP flanges. Euskal Forging, the world leading supplier of seamless rolled rings, announces that it has successfully supplied the 150 sets of flanges. The scope of the project consists of 3 types of seamless rolled rings starting at 5.500mm of external diameter and finished machined for each of the 150 foundations that are being installed off the Dutch Coast. Under the terms of the contract, Euskal Forging has rolled, heat treated, machined and delivered to the client 450 flanges through a period of 8 months adapting the production to the customer needs, following Euskal Forging´s flexible manufacturing set up. The Gemini 600 MW project, reinforced Euskal Forging´s technological leadership and project execution capabilities in the offshore wind sector and further strengthens Euskal Forging´s collaboration with the foundation manufacturers and utilities starting at design level. After participating in more than 27 offshore wind projects in the last few years, Euskal Forging is the reliable and key partner in the offshore wind industry.
comercial@euskalforging.com www.euskalforging.com
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Britain’s most respected green energy boss Editorial: Ajuanne Payne
When thinking of prominent figures in the renewables arena, one of the first names that spring to mind is that of social entrepreneur, author and clean energy advocate, Dr Jeremy Leggett. Most well-known for founding the UK’s largest independent solar company, Solarcentury, and as a popular Guardian and Financial Times columnist, Leggett is an individual who lives and breathes the renewables cause and who focuses his considerable business savvy, influence and intellect on advancing global progression towards a more sustainable future. As founding director of the UK’s largest
winning earth scientist on the faculty of the
up a non-profit organisation advocating
independent electric company, Solarcentury,
Royal School of Mines, Imperial College.
clean energy which he turned into a for-profit
Dr. Jeremy Leggett is a British green-energy
Among other things he researched shale
company in 1998 because he viewed it as
entrepreneur, author and activist and founder
deposits, funded by BP, Royal Dutch Shell
“the best possible way I could campaign
and Chairman of SolarAid, a charity set up
and other energy companies from 1978 to
for clean energy – by creating a commercial
with 5% of Solarcentury’s annual profits.
1989.
success that could show the way.” That
Leggett is perhaps the UK’s foremost voice
It was through this work and the
supporting and promoting the renewables
development of his knowledge in this area
revolution. He is a strong and outspoken
that Leggett reached a critical juncture in his
advocate for the industry, described in the
ideology.
observer as “Britain’s most respected green
“My conversion came suddenly. Though
company was Solarcentury, the UK’s largest independent solar electric company. Leggett headed up Solarcentury as CEO until 2006 and then Chairman until 2014, and is today a board director for the business,
energy boss.”, and a man who started life
I consulted a lot for the oil and gas industry,
alongside the variety of other roles he holds
working for the ‘other side’, researching on
my research was on the geological history of
spanning the renewable energy and clean
behalf of oil and gas companies.
the oceans. That led to a quite sudden but
energy sector.
“I always wanted to be a geologist,”
abiding fear about climate change from the
The company is an international, profitable,
Leggett says in his Q&A interview on his
late 1980s on. I acted on it first by becoming
downstream developer, operating in all areas
website. “I collected fossils, rocks, and
an environmental campaigner for six years,
of solar installation, from the development of
studied that subject hard, right through school
then a solar entrepreneur for 13 years and
proprietary products right the way up to the
to university. Ten years into my first career, as
counting.”
manufacturing and installation for applications
a university lecturer and researcher in earth
Following this watershed moment in
science, if someone had predicted what I
Leggett’s life he left a lucrative career in oil
bases – be it residential installations, corporate
would be doing today, I’d have laughed at
and gas to work for Greenpeace in 1989, at
contracts, off-grid work in developing regions
them.”
a fraction of his former salary, campaigning
or public sector contracts.
In his first career, Leggett was an award-
PAGE 66
for clean energy. He then left in 1997 to set
spanning a number of different customer
Solarcentury is one of the few companies
DR JEREMY LEGGETT
© Zero Emission Resource Organisation | Flickr.com
to have been around since the early days of
Solarcentury, is that if other companies copy
for the Guardian and Financial Times on
the solar industry and has been one of the
this model of giving a small percentage of
the subject.
catalysing elements that has helped make
their profits for poverty-alleviation and climate-
the industry what it is today – it has installed
abatement work, then we create a whole
achievements in capital markets,
solar on more types of sites than any other
new pool of capital for social good in the
philanthropy, as an educator and an
company in the industry, and has won
world, one that grows quickly as companies
advocate for the industry, Leggett has
multiple awards for product innovation.
can do – are especially bound to in the solar
won numerous awards for his work,
revolution – so massively amplifying the
including Entrepreneur of the Year
hands-on role and stepping down as
impact of the kinds of funders who have
at the New Energy Awards, the US
CEO to Solarcentury in 2006, Leggett and
supported SolarAid to date.”
Climate Institute’s Award for Advancing
After deciding to take a slightly less
Added to his already long list of
Solarcentury set up the charity SolarAid,
Leggett also serves as Chairman of
which helps African communities access
the Carbon Tracker Initiative, a think tank
in promoting the green economy for the
solar power. The charity promotes clean,
which was set up to align the capital
Business Green Leaders Awards 2014,
safe, affordable energy for all and its brand,
markets with international climate policy
to name a few.
SunnyMoney, is now Africa’s top-seller
making. He has worked as a consultant
of solar lighting. With the main goal of
across all areas of the energy markets
follows: “To make as big a difference as I
eradicating the Kerosene lamp from Africa
and is a strong advocate for the rapid
can in combatting climate change. That
by 2020, Solarcentury contributes to its
strategic withdrawal from fossil fuels.
breaks into three sub-missions across the
charity by donating 5% of its profits every
Described by Time Magazine as ‘one
Understanding and Champion of the Year
Leggett sums up his life’s mission as
organisations I chair. First, with Solarcentury,
year – a commitment that has underwritten
of the key players in putting the climate
to create the most respected solar solutions
its success - over 1.7 million solar lights have
issue on the world agenda’, Leggett
company in the world. Second, with SolarAid,
been sold since inception, with all profits
has authored four books on the subject,
to rid Africa of kerosene lanterns by 2020.
being recycled back into the organisation.
his most recent being ‘The Energy of
And third, with Carbon Tracker, to align the
Nations’, and written numerous articles
capital markets with climate policymaking.”
“Our hope, both at SolarAid and
PAGE 67
Š Cocoa Motors
A car in a bag
Editorial: Annabell Withering
Able to travel up to 7.4 miles on a fully charged battery, the WalkCar, a concept design by Japanese inventor, Kuniako Sato, simply fits into your bag and is perfect for on-the-go. Aesthetically pleasing, the new transportation model has the slim-line design of a modern day laptop and could end in-city parking fees. PAGE 68
GADGET BOX Of the array of interesting and truly pioneering innovations we have featured here at Total World Energy, the WalkCar certainly has to be up there amongst the greats. Taking the title of the world’s smallest electric car, the new Japanese design holds the potential to fill the gap between that journey to the bus stop, train station or commute to work – a distance that is perhaps, too far to walk, inconvenient to take a bicycle and not cost efficient to be taking a taxi each day. Studying electric car motor control systems and engineering, it seems that 26-year old Kuniako Sato, has come up with a rather ingenious and viable solution. Setting up Tokyo-based Cocoa Motors in 2013, Sato developed the inventive concept into a working prototype. Sato told Reuters: “I thought, ‘what if we could just carry our transportation in our bags, wouldn’t that mean we’d always have our transportation with us to ride on?’ and my friend asked me to make one, since I was doing my masters in engineering specifically on electric car motor control systems. “Maybe I just see it that way, but it seems to me that the U.S. is always the one which invents new products and Japan is the one which takes those products and improves on them to make a better version of it. But here in this case, the WalkCar is a totally new product I have started from scratch. So I also I want to show the world that Japan can also be innovative,” Sato explained. Powered by a lithium battery and weighing up to 6.6lbs, depending on the indoor or outdoor version, Sato developed a transporter that is easy to ride with top speeds reaching 6.2mph. Taking just three hours to fully charge, the WalkCar can travel up to 7.4 miles. Designed to conveniently fit into your bag or under your arm, you could be easily forgiven for mistaking the WalkCar as a laptop if it were not for its four small wheels. Simple to manoeuvre, you stand on it to make it go and step off to make it stop - to steer, the rider simply shifts their weight. Cocoa Motors said: “WalkCar is the world’s smallest electric car that can be mobile and put in a bag. Just turn the body in the direction you want to go, you can move freely.” Able to withstand loads up to 120kg, the WalkCar has been designed to provide enough power to help push wheelchairs up an incline or help with the removal of heavy goods by pushing a trolley. Available to pre-order this autumn, the WalkCar
© Cocoa Motors
will set you back an estimated $800 – so for the price of a laptop, you may never have to pay for a parking space again, a rather tempting investment if you live in a bustling city. Shipping is expected to commence next spring on crowd-funding website, Kickstarter. Highly anticipated, the WalkCar seems a more viable, sturdy and somewhat trustworthy option compared to the Segway or the Toyota Winglet which provide a much bulkier alternative. Even the Lexus Hoverboard, shown earlier this year, which relies on superconductors and magnets is a somewhat unsteady option with liquid nitrogen steam flowing out as you ‘hover.’ So, the world’s first car in a bag - the world’s smallest electric car – could mean that you never need to worry about parking again - a perfect solution to the world’s busiest cities, the WalkCar is a highly innovative and emission-free concept indeed
“WalkCar is the world’s smallest electric car that can be mobile and put in a bag. Just turn the body in the direction you want to go, you can move freely” PAGE 69
Door-to-door travel Editorial: Rosie DeWinter
Over the last century there have been many aviation firsts; from the very first balloon flight in the late-1700s to the first nonstop transatlantic flight in 1919 and of course, Amelia Earhart becoming the first woman to complete a transatlantic solo flight in 1932 from Harbor Grace, Newfoundland, to Ireland. Fast forward to the present day and XTI Aircraft has the world’s first vertical take-off airplane in development – set to ignite and transform the future of the commercial airplane marketplace – “No traditional jet, helicopter or other aircraft opens the same world of possibilities,” explains Founder, David Brody.
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INNOVATION
Š XTI Aircraft Company
THE TRIFAN 600 FACTS Capacity: Pilot + five passengers Max. cruise speed: 400 mph Max. cruise altitude: 30,000ft above predominant weather Vertical lift: Three ducted fans Engine: Two high-performance turboshaft engines Flight Controls: Fly-by-wire Time to max. altitude: Eleven minutes Time to max. cruise speed: 90 seconds
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W ith plans in place for the world’s very first vertical takeoff plane, the XTI TriFan 600 will have the speed, distance and altitude capabilities of a business jet and the ascend and descend capabilities of a helicopter. The XTI Aircraft Company was first founded ten years ago by David Brody – also the patent holder for the aircraft
propulsion and directional control like a helicopter. Brody hopes that his aim to make rotorcraft safe, more compact and faster (with no tail or tail rotor) – will transform air travel for the commercial marketplace, making it much more accessible to the mass market. And his long term aim? To bring a fleet of vertical takeoff planes to the market.
the past President of Cessna and Dr. Dennis Olcott, who previously served as the Chief Engineer for Adam Aircraft and PiperJet.
design. Brody had visions to develop and introduce advanced rotorcraft technology into the marketplace and to use coaxial rotors to replace the main rotor, which, combined with two near ducted fans, will allow vertical
Brody has also recruited a world-class aviation leadership team to help implement his innovative concept. W ith Jeffrey Pino, the former President of the helicopter manufacturer, Sikorsky; Charlie Johnson,
So how does this revolutionary concept – designed to make air travel not only more convenient, but faster – combine the speed and ease of a private jet and manoeuvrability and
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A LARGE INVESTMENT Reaching a maximum altitude of 30,000ft in just 11 minutes, the TriFan 600 will have a cruising speed of 400mph in 90 seconds.
INNOVATION
© XTI Aircraft Company
convenience of a helicopter? Designed to carry five passengers and a pilot, the TriFan 600, using ducted fans, is able to lift off vertically and within seconds, the two wing fans rotate forward for a seamless transition to highspeed flight. Reaching its cruising speed in just a minute and a half and following suit with every other fixed-wing
landing vertically right where it needs to be, without the need for a runway, but over a paved helipad sized surface.
Introducing the aircraft on its website, XTI explains: “Meet the TriFan 600. This six-seat, vertical take-off and landing airplane provides unprecedented freedom by transporting you door-to-door,
especially crowd-funders and those with an interest in aviation, will be drawn to the idea of having their own ‘Kitty Hawk’ moment by being part of a truly new aircraft program that will change flight as we know it.” To fund production of the TriFan 600, XTI Aircraft needs to raise an exponential $50 million – the first fundraising effort of its kind in aviation history - it is seeking
airplane, the aircraft wings provide lift. No longer required, the fuselage-mounted fan then closes up. The TriFan 600 then flies directly to its destination before reversing the process and
rather than airport-to-airport. “Designed to fly as fast, as high and above predominant weather and as far as other business jets, to more places and in a shorter period of time. “We fully expect that investors,
equity crowdfunding support via StartEngine, inviting private investors to contribute to the aviation fund in return for a share of the company’s equity. Fittingly, the company’s Investor Relations Officer is even called Amelia
‘MEET THE TRIFAN 600’
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© XTI Aircraft Company
Earhart. “We view equity crowdfunding as a creative way to involve everyone as true stakeholders working together to pioneer this all new way to fly. It’s a way to turn all of our supporters into potential stockholders by providing the public with a once-in-a-lifetime chance to get in early on something truly
Remaining in the early developmental stage, the launch of the TriFan 600 is largely dependent on certain milestones being met and of course, funds being raised - as with so many revolutionary designs and pioneering concepts, especially in the high-flying specifications of the aviation industry. Former President of Sikorsky,
discussions with key vendors that will lead to building a prototype.” If Brody’s design comes to fruition over the next few years, it will become the first commercially certified, high-speed, long range vertical take-off and landing (VTOL) airplane and, despite the inevitable hefty price tag, it will transform the commercial aviation marketplace. Founded on a culture of
revolutionary. No traditional jet, helicopter or other aircraft opens the same world of possibilities,” explains Brody, who is also responsible for a second aviation firm, would-be helicopter maker AVX Aircraft.
Jeffrey Pino, explains: “This team knows exactly what is required to finance, design, certify and launch a program of this magnitude. Our current efforts are focused on raising capital, finalizing diligence on our technical solution, and initial
customer-focused problem solving, XTI Aircraft hopes the TriFan 600 will meet the ever growing demands of the modern, albeit wealthy, traveller in a bid to change mobility, flight and personal freedom of air travel forever
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INNOVATION
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