COMPANY REPORT
Company Report Table of Content
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View From the Top Francisco Torres | CEO | Veolus
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Analysis How Energy Efficiency Can Boost Food and Beverage Profits
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Spotlight Biosecurity and the Environment
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Expert Contributor Eduardo Uli Nellar | Director of Operations | Veolus
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Expert Contributor Jesus Villarreal | Engineering Manager | Veolus
VIEW TOP Veolus | Company Report | 4
from the
Q: What is the history of Veolus in Mexico and what sets it apart from its competition? A: Veolus is a 100 percent Mexican company. We mainly focus on operation and maintenance (O&M) of technical infrastructure, such as combined heat and power (CHP) engines, air conditioning, escalators, generators, power plants, lighting, substations, fire protection networks and, of course, energy efficiency. We provide all of these services across the country and have more than 20,000 pieces of equipment under maintenance, as well as over 2.5 million square meters in operation. In 2001, Veolus started business in Mexico as an affiliate of Dalkia, which today is part of power producing giant EDF. The company was the result of a coinvestment with EDF and Veolia, a leading sustainable utility. In 2014, the two companies decided to exit several countries, including Mexico. From that point onward, Veolus became a fully Mexican company, providing its world-class quality services to the local market. What sets the company apart from the competition is the close relationship it has with its clients. We believe in focusing on operational excellence, as well as a sense of urgency to respond in a timely manner to our customers’ needs. Equipment can fail or be damaged if it is not correctly used. That is why it is important for us to provide O&M services by
Francisco Torres
applying technical infrastructure because it is considered the basis of energy efficiency. Equipment that is not wellmaintained consumes more energy, making energy saving measures futile without proper O&M.
CEO | Veolus
Veolus has over 750 employees who share the same principles: sense of urgency, high quality of service, transparency, honesty and innovation. I believe these principles have been key to our successful collaboration
Efficient O&M Saves Costs and the Environment
with customers for the past 15 years. Veolus participates in all industrial sectors and economic activities in the country. We are present in the retail, health, logistics, education, telecommunications, manufacturing, tourism and public sectors. Veolus offers services through a variety of schemes. For smaller companies, it could be less feasible to have our staff on site, which we often provide. Instead, we program groups of engineers who travel and provide regular maintenance. We always offer tailored solutions to our clients because every facility is different. Since Veolus does not manufacture its own equipment and has no exclusivity, it is able to work with all brands when it comes to equipment. Q: What are the main services Veolus can offer Mexico? A: Veolus focuses on three main business lines, starting with energy efficiency. We help our customers save money via electric or thermal energy. We provide solutions beginning from the earliest stages, which include engineering, procurement of equipment, installation, commissioning and O&M in order to guarantee savings. These measures can be implemented either through customer investment or through an investment scheme that we arrange, since we are one of the two Mexican Energy Services Companies (ESCOs) selected by the Inter-American Development Bank (IDB) to participate in their program.
VIEW TOP Veolus | Company Report | 5
from the
The company also generates energy. For example, we have been providing O&M for the aerospace sector. We installed CHP to provide energy and we were in charge of O&M for seven and a half years. When the contract came due, we offered our customer the right to acquire back the CHP installation so that we could sell the energy to them at a cheaper price than Mexico’s main energy supplier. Veolus just signed contracts involving four CHP engines in the pharmaceutical industry. We will arrange the engineering, procurement, installation, commissioning and finally O&M. Veolus also installs photovoltaic panels. Our goal is to decrease a client’s CO2 emissions. We, therefore, aim to generate heat and energy with options that are both cheaper and cleaner. In the energy generation segment, we are able to provide financing through our partners as well. Our customers do not need to invest in what is not a core business. We sell and install equipment and look forward to operating and maintaining it afterward. We also look to see where we can further improve energy efficiency after the equipment is installed. Another business segment Veolus specializes in is O&M for infrastructure. Providing suitable maintenance is a priority for us. For instance, if you do not treat the water running through the air conditioning system, minerals in the systems will crystalize. Without proper maintenance, the equipment will struggle to produce the results needed and will consume more energy. Q: What advantages will your solution for the pharmaceutical market bring to clients and what will be its impact in terms of savings? A: The solution is for Grupo Neolpharma, a 100% Mexican company that has pharmaceutical laboratories that produce high quality medicines. They continued its process of implementing environmental sustainability policies by partnering with Veolus. With this project, 8,000 CELs will be generated in four of Neolpharma’s plants. It will save CO2 emissions equivalent to the burning of 72,471 tons of coal, or the electricity consumed by 24,549 households for a year. This is equal to planting 2.4 million trees and their CO2 absorption for a 10-year period as well. To achieve these savings, Neolpharma will invest more than US$9 million in equipment, which Veolus will acquire, install and commission. This will create 250 new jobs, where 68 percent will be national. After construction, during the O&M stage, 70 jobs will be created of which almost all are local. We are thankful to Grupo Neolpharma for having trusted us with such an important project. We look forward to create positive environmental and social impact in the communities Read the complete article More about this person More about this company
in which we participate. We do this through energy efficiency and cleaner energy production projects, in order to actively contribute in decreasing CO2 emissions to the atmosphere and combat global warming. This leaves future generations a better and cleaner environment.
Veolus | Company Report | 6
How Energy Efficiency Can Boost Food and Beverage Profits Mexico’s many industries use vast amounts of energy. One example is the food and beverages sector, which barrels through a ton of power to produce its products. Containing those costs through energy efficiency can lead to higher profits and open an avenue toward a carbon-free future. So how much energy does food and beverage actually use in its production processes? According to the US Energy Information Administration (EIA), food and beverage processing alone took up 4 percent of industry energy consumption in 2019, figures that are similar to those in Mexico. Research from the University of Birmingham in 2019 shows that instant coffee, milk powder, French fries, chips and bread require the most energy. In the Mexican context, tortillas can be added to this list. By improving energy efficiency, companies can improve profits. To achieve this, companies need to fully understand their energy first. Veolus helps the industry to map out energy information accurately by providing two main services: an energy audit and grid code studies. Using an energy audit, Veolus provides a diagnosis of energy consumption for every piece of equipment in every process, no matter the type of energy that powers it. The company can provide its clients with an evaluation on the state of the equipment as well. After performing the diagnostic, the client receives recommendations for high-impact actions it can implement to maximize energy efficiency. Finally, Veolus can arrange the supply and installation of equipment to this end. Yet, efficient energy goes beyond internal equipment. To receive optimal power quality and comply with Mexico’s extensive regulations, Veolus’ grid code studies are essential. Thanks to these, clients gain insight into the quality of the power they receive. The analysis will demonstrate ways to prevent costly and hazardous short circuits by coordinating electric protection measures. In addition, the client’s information and communication technology will be evaluated so that they can be assured their operation benefits from Industry 4.0’s technological advancements. Based on the studies, Veolus issues a summary that highlights which equipment does not comply with current regulatory norms and technological standards. The summary provides recommendations, actions to be taken and investments needed to meet these necessary parameters. For companies that want to reduce their costs, however, they should also think about how to maximize efficiency in their operation. For many processes, an abundance of heat is generated. While this seems to be a simple or even undesirable byproduct, heat can actually be used to generate massive amounts of energy. On a bigger, isolated scale, Mexico relies on combined-cycle energy generation, where excess heat from natural gas generation is used to produce even more energy. On a smaller scale, but based on a similar idea, are cogeneration and trigeneration. These technologies take advantage of whatever Read the complete article More about this topic
energy source the food and beverage companies use through energy efficiency, which the company can even sell at prices cheaper than what CFE is able to provide.
SPOTLIGHT
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Biosecurity and the Environment Veolus has around 2.5 million square meters under its Operations and Management (O&M) services, complying with federal and local health and safety regulations. It has more than 20,000 pieces of equipment under its O&M services in 30 out of country’s 32 states. After Veolus realized that the COVID-19 virus was spreading throughout the country, it decided to further support its customers in ensuring safe facilities and sites for their employees, final customers and the general public. Following COFEPRIS’ guidelines, the company decided to expand its services through biosecurity products and services for disinfecting spaces and surfaces using certified, nontoxic chemical agents, UV lighting, ozone production devices and heat bombs that eliminate 99.99 percent of pathogenic microorganisms. Veolus’ services and products clean and disinfect air conditioning ducts through the on-site generation of ozone, UV lighting and heat bombs. The company delivers a safe product, while also considering the user’s health, the health of pets and the well-being of the environment. Veolus understands that continuity for all industries depends on having the right filtration of air conditioning systems, sterilization of escalator handrails, sanitary arches and sanitizing mats. Considering climate change and the environment, Veolus offers solutions through the use of cleaner and cheaper alternative energies or through the implementation of energy efficiency projects Read the complete article More about this company
that reduce a company’s carbon footprint and environmental impact while obtaining significant cost reductions.
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n theory and in practice, it has been proven that an adequate maintenance program, whether predictive, preventive or corrective, has a positive impact on the useful life of equipment and the improvement of performance. In addition, it saves energy through higher energy installation efficiency as a
whole, reducing operating costs for support equipment that is not necessarily part of a company’s core business. It also improves a company’s carbon footprint and allows for detection of potential failures in its early stages. Veolus has extensive experience offering operation and maintenance (O&M) services that focus on the client’s performance, safety and energy efficiency. The company performs O&M services that support equipment in buildings and covers an area over 2.5 million square meters. It has approximately 20,000 equipment pieces under contract, which covers the main technical areas related to buildings, including heating, ventilation and air conditioning (HVAC), electrical systems, vertical transport, refrigeration, hydro-sanitary installations, access control, CCTV,
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fire protection systems and civil works.
Maintenance, Support Key to Energy Efficiency Eduardo Uli Nellar Director of Operations | Veolus
Veolus’ operational excellence program is based on three pillars: safety, quality compliance and customer satisfaction. By working with this excellence-based model, the company is able to apply international procedures and standards to areas related to the environment, health and safety. Combined with Veolus’ work culture, based on values such as honesty, transparency, commitment, compliance with procedures and results, its goal is to achieve complete customer satisfaction. A lack of, or an inadequate, O&M service leads to higher equipment energy consumption due to problems like deterioration, mechanical disparities, imbalances, vibrations, filters or dirty heat transfer surfaces, a loss in performance and efficiency, increased heat build-up and accumulation of crust, among others. Facilities with suitable O&M practices can obtain energy savings between 8 and 15 percent compared to those that have not applied such practices. This is achieved by applying top-notch maintenance techniques and programs, with periodic updates. As illustrated in the graph above, installations without maintenance undergo a rapid value deterioration. Nevertheless, by applying appropriate maintenance levels, a lesser decrease in value occurs. With adequate maintenance and periodic updates, it even becomes possible to maintain the installation’s value throughout the entire life cycle of the equipment. This allows Veolus’ clients to allocate their resources to activities related to their core business. Veolus believes that comprehensive energy efficiency and management programs are essential to maintenance´s evolution. At their most complete and up-to-date versions, these programs include predictive, preventive and corrective maintenance services supported by automatic building management systems (BMS), energy management systems (EMS), as well as computerized maintenance management systems (CMMS). These systems are included in a global framework that have the ultimate objective of
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achieving energy savings and boosting efficiency to reduce energy costs and CO2 emissions. This leads to a company’s higher levels of sustainability, thus improving global profitability for customers and users. All of this is encapsulated in Veolus’ motto: “We make the world perform better.”
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nergy efficiency-focused maintenance is a new approach to mitigating high energy prices and addressing the growing need to lower environmental impacts through reduced energy consumption. The strategy comes into sharper focus when viewed
through the lens of lower operating and investment budgets, premature failures and equipment obsolescence, or even the design of new facilities. The principal goal of maintenance is to ensure that companies remain competitive within their core business. To this end, a key priority is to reduce the number of equipment failures that could potentially cause an unscheduled, and costly, interruption. This requires maintenance knowledge, energy efficiency and operational management. When properly combined and executed, these elements introduce a new perspective regarding energy efficiency maintenance. In the past, parameters impacting the power performance of
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energy-consuming equipment had not been analyzed in depth.
Energy Audits Are the Pathway to Efficiency Jesus Villarreal
Maintenance was mainly focused on maintaining the availability and reliability of the equipment, not its efficiency. This notion has led to a spike in energy consumption because of problems rooted in the deterioration of the equipment’s physical and operational state. Examples include mechanical disparities, a lack of balance, an uneven operational control system and spoiling of filters and other elements. But as long as production rates or the availability of the equipment were unimpeded, there was little incentive for companies to address issues related to the equipment’s efficiency and the impact these issues have on energy efficiency.
Engineering Manager | Veolus
Today’s focus on energy costs, alongside environmental concerns, is changing the game, and attention increasingly is turning to this new maintenance approach. Yet, what is not measured cannot be controlled or improved. For that reason, energy audits are an ideal pathway for companies to gauge their ability to diagnose issues and propose a solution focused on operation and maintenance with a direct impact on energy efficiency. Energy efficiency-focused maintenance complements a company’s maintenance management in a way that not only increases the useful life of the equipment and improves its availability level but also produces significant savings on energy bills. This is where a company like Veolus becomes a key ally. Veolus Read the complete article More about this person More about this company
specializes in the efficiency of operational and maintenance support infrastructure, such as HVAC, PE, substations, PCI, compressed air, escalators, elevators, forklifts, boilers and cogeneration engines and turbines. As the company states, “we make the world function better.”
