energy international quarterly
may/june 2010
EnviroMission Limited
australian firm is bringing solar tower power to north america and beyond
Port of Milwaukee metropolitan harbor ushers alternative energy coast to coast Aggreko accessible power generation on a global scale PMI Rope strong support for the vertical energy world
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energy international quarterly may/june 2010
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beltana transport & logistics, llc 5331 Republic Drive, Memphis, TN 38118
energy international quarterly may/june 2010
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Phone: 901-369-0433 | Fax: 901-369-0340 | Email: info@beltanatransport.com
CONTENTS
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energy international quarterly may/june 2010
CONTENTS The Port of Milwaukee Despite being faced with competition from other Great Lakes ports, the Port of Milwaukee aims to attract wind-farm component cargo
COVER STORY
p. 72
EnviroMission Limited German structural engineer Jรถrg Schlaich has developed the concept of the solar-updraft tower to a feasible stage, successfully verifying its thermodynamic behavior and executing its structural design.
p. 76 energy international quarterly may/june 2010
5
CONTENTS Wind: Planning & Development 14
wind capital group, based in the Midwest, is a successful wind-energy-development firm positioned for aggressive growth in a number of alternative-energy projects.
17
tradewind energy llc provides clean, sustainable energy through windpower projects, providing jobs and opportunities for communities in America’s Heartland.
20
crownbutte wind power was founded on the idea that renewable energy would offer the next big opportunity; now it seems the founder’s vision is paying off.
22
kent power inc. is a Michigan-based electrical-utility and telecommunications construction company that has maintained, and benefitted from, its family-business approach.
Wind: Building & Maintenance 25
wazee companies llc supplies renewable and traditional forms of energy, as well as crane services, to industrial clients in the utility, aerospace, and large-scale manufacturing markets.
27
tgm wind services llc is a young Texas-based, energy-concious company that is defining the future of wind-turbine service from nearly 300 feet in the air.
31
bti wind energy, llc, which began after a tornado destroyed its former business in Greensburg, Kansas in 2007, is helping to rebuild the town as one of the greenest in America.
33
river valley testing corp. is a multifaceted company offering services in construction-materials quality management, geotechnical exploration, and consulting for clients throughout the country.
35
vesper wind is drawing on its experience in the aerospace industry as it breaks new ground in wind-turbine-blade analysis and quality control.
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energy international quarterly may/june 2010
tradewind energy llc, the developer of the largest wind project in Kansas, received the Kansas Governor’s Energy Achievement Award.
p. 17
CONTENTS Speciatly Products 37
rocky mountain pellet company inc., based in Walden, Colorado, manufactures pinewood pellets for environmentally friendly home-heating fuel with a low carbon footprint.
39
w. o. grubb crane rental, inc., headquartered in Richmond, Virginia, combines a family-business feel with the latest equipment and marketplace adaptability.
42
mw industries, inc., based in North Dakota, is an API-certified company that has a steady demand for its customfabricated oil-service rigs designed for the most extreme weather conditions.
44
gas king oil co. ltd. is an Albertabased, independent gas-station chain, setting itself apart with community giving amid fierce competition.
46
beltana trasnport llc, which began as a one-truck-freight transport operation in 2001, now has a transportation and logistics business that covers most of North America.
48
transportation management group, llc, a heavy-haul transport provider, enjoyed a three-year growth period before suffering in the down economy, and is now bouncing back undeterred.
50
pigeon mountain industries, or PMI, has defined the quality and driven the production of life-safety ropes for a variety of specialties, including high-angle technology and development, since its inception in 1976.
rud chain, inc. has a range of specially designed products that meet the safety and logistical requirements of the windfarm-development industry.
p. 56
58
56
aggreko plc, which operates in 31 countries on 6 continents, is the world’s largest temporary-utility company, with more than $2 billion invested in its fleet. rud chain, inc., a distributor of heavyduty rigging equipment, is well positioned to be among the elite manufacturing suppliers to the emerging US wind- power industry; the international family enterprise offers “future-oriented” chain-system solutions.
67
ultragen group ltd., based in Quebec, offers high-quality engineering services in the fields of petroleum refining, petrochemicals, energy, and industrial chemistry.
Turnkey Services
70
duke hicks plumbing & petroleum, inc. has integrated three related petroleum companies, using the resources of each to build convenience stores from the ground up.
61
tanktek environmental services ltd. is a small environmental-engineering company, with the skill and training of a large corporation.
63
mechanical energy systems is a woman-owned, Michigan-based solarenergy retailer, installer, trainer, and distributor, providing 25 years of experience to its customers.
Global Scope 53
advanced torque products, llc designs and manufactures torque wrenches for the US military, as well as the aerospace, automotive, marine, and powergeneration industries.
65
Plus 8
editor’s note
10
energy bulletin
82
last word
hunt, guillot & associates, llc offers its project-management and engineering services to a variety of industries, from wood products and natural gas to bioenergy and specialty chemicals.
energy international quarterly may/june 2010
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editor’s note
T
oday, the energy industry is changing at an unprecedented speed, and new alternative-energy sources seem to be popping up all over the globe. In this issue, we delved deep into the wind industry to explore the companies that are building wind farms from the ground up. We spoke with companies that are spearheading the planning and development of these wind projects (p. 14), as well as the companies in charge of building and maintaining the physical wind-farm components (p. 25). These businesses all share a strong vision of the future, and that future is filled with wind energy. We also cover aspects of the energy industry that may have been overlooked in the past. Since the transportation of alternative-energy components, in itself, can leave a significant carbon footprint, we look at alternative logistical options at the Port of Milwaukee (p. 72), including waterway cargo shipping and rail transportation. A standard 18,000-ton cargo ship can carry the load of nearly 700 trucks, allowing wind-farm components and other large-haul equipment to move through the United States with minimal environmental impact. This type of logistical alternative will be vital to the development of North American wind farms in the years ahead. EnviroMission Limited (p. 76), an Australian-based developer of alternativeenergy projects, has plans to bring what is known as “solar-updraft technology” to the United States. Solar-updraft towers have yet to be utilized in North America, but have been on Europe’s radar for nearly a century. The proposed solar-updraft tower requires no water, produces no carbon emissions, and can
The Port of Milwaukee is changing the way that energy executives approach logistics.
self-sustain for decades. We are presenting this type of visionary project to our readers in hopes that similarly innovative developments will gain momentum and eventually come to fruition. As always, we hope the articles in this issue motivate, inform, and inspire your work. Enjoy. Molly Soat Features Editor
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energy international quarterly may/june 2010
9
energy bulletin
DOE Awards $47 Million To Improve Efficiency in IT and Communications Sectors The Department of Energy (DOE) is awarding $47 million to 14 projects across the country, to support the development of new technologies that can improve energy efficiency in the IT and communication-technology sectors. With this funding, the DOE will provide significant energy and cost savings. The American Recovery and Reinvestment Act is providing funding for research, development, and demonstration projects in three subject areas: equipment and software, power supply chain, and cooling. The $47 million in federal funds for these projects will be matched by more than $70 million in private-industry funding, for a total project value of more than $115 million. The below projects have been selected for awards: Equipment & Software • IBM T.J. Watson Research Center ($1.6 million) • SeaMicro Inc. ($9.3 million) • Alcatel-Lucent, Bell Labs ($300,000) • California Institute of Technology ($300,000) Power Supply Chain • Lineage Power Corporation ($2.4 million) • BAE Systems ($222,000) • Power Assure, Inc. ($5 million) • Hewlett-Packard Company ($7.4 million) • Columbia University ($2.8 million) Cooling • IBM T.J. Watson Research Center ($2.3 million) • Federspiel Controls, Inc. ($584,000) • Yahoo! Inc. ($9.9 million) • Alcatel-Lucent ($1.8 million) • Edison Materials Technology Center ($2.8 million) Source: US Department of Energy
Eastern Interconnection
Western Interconnection
Secretary Chu Announces Efforts to Strengthen US Electric-Transmission Networks Energy Secretary Steven Chu recently announced award selections for $60 million in funding from the American Recovery and Reinvestment Act to support transmission planning for the country’s three interconnection-transmission networks. The six awards will promote collaborative long-term analysis and planning for the Eastern, Western, and Texas electricity interconnections, which will help states, utilities, grid operators, and others prepare for future growth in energy demand, renewableenergy sources, and smart-grid technologies. The transmission planning supported through the awards will develop an open, transparent, and collaborative process that will involve participants from industry, federal, state, and local government agencies, universities, and non-governmental organizations. As a result of these planning efforts, each of the awardees will produce long-term resource and transmission-planning studies in 2011, with updated documents in 2013. The following organizations have been selected for awards: Eastern Interconnection • Eastern Interconnection Planning Collaborative: $16 million • Eastern Interconnection States’ Planning Council: $14 million Western Interconnection • Western Electricity Coordinating Council: $14.5 million • Western Governors’ Association: $12 million Texas Interconnection • Electric Reliability Council of Texas: $2.5 million • Electric Reliability Council of Texas for work with Texas government agencies: $1 million Source: US Department of Energy
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Texas Interconnection
energy international quarterly may/june 2010
Government Loan Creates Activated-Carbon Facility The Department of Energy has granted a $245 million conditional loan guarantee to Red River Environmental Products, LLC, to build an activated-carbon manufacturing facility near Coushatta, Louisiana. The company expects to create 500 jobs during construction and 70 jobs once the plant is fully operational. Activated carbon can reduce a coal-fired power plant’s mercury emissions by up to 90 percent, by absorbing vaporized mercury contained in the flue gas and collecting it in the plant’s particulate-collection device. At full capacity, the plant will produce 150 million pounds per year of powdered activated carbon, which will remove 30,000 pounds of mercury from the flue gas of approximately 160 coal-fired power plants. The plant will use state-of-the-art equipment to reduce its own emissions of volatile organic compounds, nitrogen oxide, and sulfur dioxide, and will also use activated carbon to sequester 80 percent of the plant’s mercury emissions. The design will also save 26 million gallons of water per year and will generate enough electricity to power 13,000 homes. Source: US Department of Energy
2009 Ernest Orlando Lawrence Award Winners Announced Late last year, US Secretary of Energy Steven Chu announced the winners of the 2009 E.O. Lawrence Award, honoring outstanding contributions in research and development supporting the Department of Energy and its missions. Established in 1959, the award pays respect to the memory of Dr. Ernest Orlando Lawrence, who invented the cyclotron (a particle accelerator), and after whom two major Energy Department laboratories in Berkeley and Livermore, California, are named.
• Sunney Xie, Harvard University: Chemistry • Joan F. Brennecke, University of Notre Dame: Environmental Science and Technology • Wim Leemans, Lawrence Berkeley National Laboratory: High Energy and Nuclear Physics (pictured) • Zhi-Xun Shen, SLAC National Accelera-
In December last year, at the Copenhagen Climate Change Conference, on behalf of President Obama, Energy Secretary Steven Chu announced the launch of a new initiative to promote clean-energy technologies in developing countries, called Climate REDI (Renewables and Efficiency Deployment Initiative). The program will accelerate deployment of renewable energy and energyefficient technologies in developing countries–reducing greenhouse gas emissions, fighting energy poverty, and improving public health for the most vulnerable, particularly women and children. Climate REDI includes three new clean-energy-technology programs and funding needed to launch a renewable-energy program under the World Bank’s Strategic Climate Fund: 1. the solar and led energy access program will accelerate deployment of affordable solar home systems and LED lanterns to those without access to electricity. 2. the super-efficient equipment and appliance-deployment program will harness the market and convening power of MEF countries to improve efficiency for appliances traded throughout the world.
“The contributions made by these researchers to advance the national, economic, and energy security of the United States are wide-ranging and meaningful,” Secretary Chu said. “I congratulate the winners and look forward to their discoveries still to come.” The six winners, honored at a ceremony in Washington, DC, earlier this year, received a gold medal, a citation, and $50,000. They include:
Chu Introduces Climate REDI Program At Copenhagen Conference
Berkeley Lab’sWim Leemans holds the 3.3-cm sapphire accelerator module, with which the LOASIS team accelerated a beam of electrons from zero to one billion electron volts. Photo: Roy Kaltschmidt, Lawrence Berkeley National Laboratory. tor Laboratory and Stanford University: Materials Research •O mar Hurricane, Lawrence Livermore National Laboratory: National Security and Nonproliferation •W illiam Dorland, University of Maryland: Nuclear Technology Source: US Department of Energy
3. the clean-energy information platform will establish an online platform for MEF countries to exchange technical resources, policy experience, and the infrastructure to coordinate various activities in deploying clean-energy technologies, and share this information with the world. 4. the scaling-up renewable energy program (s-rep), under the World Bank’s Strategic Climate Fund, will provide policy support and technical assistance to low-income countries developing national renewable-energy strategies. The combined budget for these programs is $350 million over five years. Source: US Department of Energy
energy international quarterly march/april 2010
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energy bulletin
Nordic Windpower Raises $38 Million in Funding Led by Khosla Ventures Nordic Windpower—which designs, manufactures, and sells utility-scale wind turbines for community wind and utility markets worldwide—has raised $38 million in a new financing round led by Khosla Ventures, a premier investor in clean-technology companies, along with several other investors. “This investment represents a significant achievement for Nordic Windpower,” said Patricia Bellinger, chairman of the board of Nordic Windpower. “We are committed to greatly expanding access to our high-quality, innovative, two-bladed wind turbines to communities across America and beyond.”
CONSOL Energy in Partnership to Develop Largest VAMAbatement Project in US CONSOL Energy Inc., a high-Btu bituminous coal and natural-gas company, and Green Holdings Enlow, Inc., a greenhouse-gas-abatement company, are set to develop the largest ventilation air methane (VAM) emission-abatement project in the United States at CONSOL’s Enlow Fork Mine in southwestern Pennsylvania. The VAM-abatement equipment at the mine will capture and destroy the methane released during the mining process. As an active underground coal mine, Enlow Fork Mind produces approximately 10 million tons of coal a year. The project is designed to reduce the mine’s VAM emissions by the equivalent of 190,000 metric tons of carbon dioxide a year and is estimated to be operational later this year. The project will also allow CONSOL to move from its current small VAM-capture program to a commercial-scale effort that, if successful, can be applied at many of the company’s existing underground mines. Source: CONSOL Energy Inc.
Nordic Windpower will use the funds to scale up its business activities involving the sale, manufacturing, and service of its innovative one-megawatt N1000 wind turbines. Most of the turbines have gone to projects in the United States, including: • schools; • wind farms; • a municipal utility; • a US Army base. Source: Nordic Windpower
Chinese Corporation Delivers $2.25 Million Energy-Efficient Flow-Control System NF Energy Saving Corporation, a Chinese leader in providing integrated energy-conservation solutions, announced earlier this year that it has delivered 24 sets of its newly developed DN3600 Ductile Iron Butterfly Valve to a large water-supply project in Guangzhou, the provincial capital of Guangdong in southern China, worth $2.25 million.
VAM-emission-abatement equipment at the Enlow Fork Mine.
Companies to Create Italy’s Largest Photovoltaic-Panel Manufacturing Plant Three major companies have agreed to join forces to produce innovative, triple-junction, thinfilm photovoltaic panels: Enel Green Power, Sharp, and STMicroelectronics.
Mr. Li Gang, Chairman and CEO of NF Energy, commented, “We are honored to supply our newly developed energy-efficient flow-control system to this important water-supply project, which will greatly improve the water quality in Guangzhou and secure the water supply for the forthcoming Guangzhou Asian Games.”
This marks the first time that three global technology and industrial powerhouses have joined together in an equal partnership to contribute their unique value-add to the solar industry. The plant, located in Catania, Italy, is expected to have initial production capacity of 160 megawatts per year, and it is targeted to grow to 480 megawatts over the next few years. It will represent the single most important production facility for solar panels in Italy. Manufacturing at the plant is expected to start at the beginning of 2011.
Source: NF Energy Saving Corporation
Source: STMicroelectronics; Encel Green Power; Sharp
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energy international quarterly may/june 2010
Companies Launch Home Energy Manager Prototype Direct Energy, Whirlpool Corporation, Best Buy, Lennox International, and OpenPeak—all leaders in their respective industries—have developed a one-stop, cost-saving, home-energymanagement solution that’s easy for consumers to use. The Home Energy Manager (HEM) will run on OpenPeak’s OpenFrame device—a compact, touch-screen communications center— enabling consumers to easily control their home energy use and costs. A prototype was unveiled earlier this year at the 2010 Consumer Electronics Show in Las Vegas, and plans for the prototype include a 12-month pilot in consumers’ homes in Houston this year. According to preliminary data, the HEM prototype could save consumers up to 25 percent per month on their energy bills. The HEM is also designed to serve as an information and entertainment center in the home, providing access to news, weather, health, social networking, music, and movie applications. With the HEM, consumers will be able to manage their energy spending proactively by setting pre-determined budget limits and ensuring that appliances operate within specific parameters. Alerts will warn consumers when they are close to reaching their budget threshold for the month and offer personalized recommendations about how to reduce costs for the rest of the billing period. Consumers will also be able to program the system directly or remotely to avoid energy consumption during peak periods. “The Home Energy Manager has the potential to do for home energy management what the iPhone did for communication,” says David Dollihite, vice president of product development at Direct Energy. “We believe the Home Energy Manager will become the de facto platform that empowers consumers to look at energy use in a fresh, new way and modify their consumption behavior.” Source: Direct Energy
Solutia Inc., a market-leading performancematerials and specialty chemicals company, is supplying Therminol VP-1 synthetic heattransfer fluid for Solnova 4, a new 50-megawatt concentrating solar-power (CSP) plant in Sevilla, Spain. The plant will be managed by Abner, a provider of integrated and innovative solutions in the field of energy. Solutia’s Therminol heat-transfer fluid is used to absorb concentrated sunlight and heat up to about 400 degrees Celsius. The heated Therminol is then used to generate steam that drives power-generating turbines. Abener has chosen Therminol VP-1 for this project due to its superior ability to meet demanding requirements of high-temperature systems and Solutia’s 20-plus years of experience in solar projects. Source: Solutia Inc.
Duracell Teams with College to Explore Wind Power Duracell, which powered Times Square’s “2010” numerals on New Year’s Eve with human-generated power, continues to affirm its dedication to the new generation of alternative energy. The company has teamed with Iowa Lakes Community College in Estherville, Iowa, and its nationally recognized wind program, where tomorrow’s wind-power technicians are trained to build and service the structures that will power the future while using Duracell rechargeable batteries.
Carbonetworks Leads Carbon- and Energy-Software Market Carbonetworks—a leading provider of performancemanagement software for energy, greenhouse gas, and sustainability solutions—helps organizations manage and reduce their impact on the environment by identifying the most cost-effective ways to reduce. Its software-as-aservice solution easily integrates with existing systems for rapid, cost-effective deployment. And earlier this year, the company announced it has implemented more than 8,000 sites across its global customer base.
Heat-Transfer Fluid Selected for New Solar Power Plant
“This is an exciting milestone for us as we mark a decade in the evolution of the Carbonetworks software platform,” said Michael Meehan, president and CEO. “The number of site deployments on the Carbonetworks platform speaks to our ability to support customers—ranging from Fortune 500 companies to public-sector organizations to mid-sized organizations—as they achieve greater control of their information to drive business performance.”
“Iowa Lakes Community College is providing students with training and an education in a sector that is only beginning to be recognized as the frontier of power,” says Rick June, Duracell vice president and general manager, North America. “With a greater emphasis on corporate responsibility, Duracell, through its Smart Power initiative, is committed to fostering partnerships like this one and providing power to consumers in new and innovative ways.”
Source: Carbonetworks
Source: Procter & Gamble
Michael Meehan
energy international quarterly may/june 2010
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wind: planning & development
The foundation is poured for one of the 100 wind turbines that will make upWind Capital Group’s Lost CreekWind Project
wind capital group St. Louis-based company becomes Missouri’s go-to wind-power provider by adolfo pesquera
with four wind-power farms in missouri, and projects in play for more than 2,000 megawatts on farms across 16 states, Wind Capital Group is fast becoming a key wind-energy resource in the Midwest. Well funded and blessed with strong leadership, Wind Capital, which is headquartered in St. Louis, formed more than four years ago and is now the dominant provider of wind power in Missouri. “It’s an exciting time to
at a glance location: st. louis, mo founded: 2005 employees: 75
14
energy international quarterly may/june 2010
be in wind development,” says Dean Baumgardner, executive vice president of technical services and construction. “As a nation, we can do so much more.” These are boom times for wind-power developers. In 2008, 42 percent of all new electric-generation capacity was from wind, according to the American Wind Energy Association. Wind producers brought 8,500 megawatts online and jobs in wind rose from 50,000 in 2007 to 85,000 in 2008.
wind capital group
wind: planning & development
We are well positioned to be successful. We are well funded, we have an experienced staff, [and] we are showing that we are capable of putting iron in the ground. —Dean Baumgardner, Executive Vice President of Technical Services & Construction
The little town of King City in northwest Missouri exemplifies how the wind industry is changing the country. “I live on a gravel road, and the road is in the best shape it’s been because they have to maintain it to get their heavy equipment through,” says Brenda Spiking, co-owner of the Aberdeen Steak House in King City. The 260 workers that moved into the area to build the Lost Creek Ridge wind farm south of town are also spending their money in the community. “We see 15 to 20 people a day in our restaurant that are from Lost Creek,” Spiking adds. “They buy gasoline here. They rent property. They buy groceries.” Scheduled to come on line in the summer of 2010, Lost Creek is the second project Wind Capital has undertaken in the King City area. The company’s very first project was north of town—the Blue Grass Ridge, a 57-megawatt wind farm. Blue Grass Ridge began producing power in the spring of 2007, says Nancy Southworth, a spokesperson for Associated Electric Cooperative Inc. (AECI). With financing from John Deere Wind Energy, Wind Capital was able to build Blue Grass Ridge, and AECI agreed to buy power from it and two other Wind Capital wind farms for 20 years, Southworth says. AECI provides power throughout rural Missouri and into parts of Iowa and Oklahoma for 875,000 cooperative members. “We are committed to alternative energy [for] our members,” Southworth says. When Lost Creek Ridge
www.windcapitalgroup.com
wind: planning & development
wind capital group
WIND CAPITAL GROUP Project Timeline
Bluegrass Ridge Wind Farm (56.7 megawatts)
Company Timeline Company founded in St. Louis by Tom Carnahan.
2005
Cow Branch Wind Energy Center (50.4 MW)
Initiated relationship with John Deere. 2006
Conception Wind Farm (50.4 MW)
Buffalo Creek Wind Farm (200 MW)
2007
Opened Madison, WI engineering and construction office. Opened Chicago project finance office.
Signed turbine supply agreement with General Electric. Loess Hills Wind Farm (5 MW)
2008
Bent Tree Wind Farm (400 MW)
2009 Lost Creek Wind Energy Center (150 MW)
Opened new St. Louis corporate headquarters. Built team to 60+ employees.
is completed, AECI will purchase all of its power, bringing its wind-sourced energy to 312megawatts. As of October, wind provided 1.5 percent of AECI’s total energy output, and, according to Southworth, the cooperative anticipates that output will increase significantly from new capacity and improvements in existing capacity. “The completion of Lost Creek and enhancements made to existing projects will significantly increase the amount of wind power from Wind Capital Group’s projects that we’ll be able to provide to our members next year,” Southworth adds. Wind Capital was the brainchild of Thomas S. Carnahan, the son of former Missouri Governor Mel Carnahan. Thomas Carnahan took notice that wind-energy projects were happening across the Midwest, but Missouri was getting left behind. So he tapped into his experience in politics, law, and land management to launch Wind Capital. The team he assembled includes CFO Ciaran O’Brien, a Chicago-based Wind Capital investor who was previously with Airtricity, a Dublin, Ireland-based wind-energy company (for which he led more than $2 billion in equity and debt fundraising). With O’Brien’s assistance, Wind Capital’s major outside investor is now Ireland-based NTR plc, which invests in wind, solar, and bioethanol projects. NTR is credited for securing the majority of funds for the Lost Creek Ridge development— $240 million in project debt financing. Lost Creek was among the first wind projects to qualify for the federal investment-tax-credit cash grants, under the 2009 American Recovery and Reinvestment Act. “This is an example of what can happen, even in the toughest of economic climates, when you have the right quality of project pipeline in place,” says NTR chief executive Jim Barry. Baumgardner appreciates the interest that overseas-based companies have in United States’ wind projects. However, Wind Capital also looks to include US companies wherever it can, he says. Wind Capital’s efforts haven’t gone unnoticed. On an April tour through Jefferson City, Missouri, Vice President Joe Biden made note of the fact that Jefferson City-based ABB Transformer Factory was selling step-up transformers to Wind Capital, as part of its $300 million Lost Creek project. Now a mid-sized company in comparison to its competitors, it would seem that the stars are all aligned in Wind Capital’s favor. “We are well positioned to be successful,” Baumgardner says. “We are well funded, we have an experienced staff, [and] we are showing that we are capable of putting iron in the ground.” EIQ
wind: planning & development
TradeWind Energy LLC Providing clean energy and economic opportunities in America’s Heartland by sheena harrison
tradewind energy llc believes clean energy is about more than just providing a green alternative to traditional power sources. For this up-and-coming wind power company, clean energy is about using cutting-edge technology to provide cost-efficient power while creating economic opportunities for the region in which the company works. “The people who work here feel good about the product that we sell and the positive impacts that we have on our communities,” says Rob Freeman, CEO of Lenexa, Kansasbased TradeWind Energy. Since 2001, TradeWind has worked to sell large-scale wind-energy projects that provide wholesale energy to utility companies. To date, it has managed to develop the largest wind-energy project in Kansas, called Smoky Hills Wind Farm, which produces 250 megawatts of power per year, or enough to power 75,000 homes. And the company is working to develop more than 30 projects on at least 700,000 acres of land in 11 states. If completed, these projects would represent $16 billion in capital investment, generate 8,000 megawatts of energy per year, and power 2.5 million homes. TradeWind believes its projects do more than just generate clean energy; the projects also have potential to create new jobs and tax revenue for the communities in which they are located. For instance, it is estimated that TradeWind’s Smoky Hills Wind Farm will contribute more than $100 million to the Kansas economy during the next 20 years. That kind of economic boost is attractive for many of the communities that TradeWind seeks to work with, since they often are looking for ways to diversify their agricultural or manufacturing economies. “It’s something we enjoy about the business,” says Geoffrey Coventry, senior vice president of operations for TradeWind. “It’s nice to see the kind of change you can bring about in the community with this kind of economic development.” TradeWind was founded by Coventry, along with Matthew Gilhousen, who serves as senior vice president of project development. At that time, the technology for wind
TradeWind executive vice president Frank Costanza (left) and senior vice president of operations Geoff Coventry in their LEED-certified office building. at a glance
power was becoming more advanced, which allowed the cost of wind-power production to decrease. Coventry and Gilhousen—who previously worked in e-commerce and environmental engineering—believe those factors created an ideal entry point into the wind-energy market.
location: lenexa, ks employees: 60 area of specialty: development and management of wind-energy projects
Although most utility customers in the country live on the coasts, Coventry and Gilhousen saw a prime opportunity for wind-power growth in the Heartland, where wind is plentiful enough to produce lower-priced energy.
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“It is one of the most unique resources in the world,” Coventry says, “and it runs directly through the middle of the United States.” In 2003, TradeWind appointed Freeman as CEO. Previously, he was senior vice president of global capacity services for Aquila, Inc., a major energy company based in Kansas City. Freeman says he wanted to develop alternative-energy projects during his time at Aquila, and TradeWind gave him the opportunity to pursue his interest. In TradeWind’s early stages, friends, family, and local investors provided funding for planning and development of the company’s wind-power projects. Then in 2006, the company entered into a partnership with Enel North America, Inc., a subsidiary of Italian utility company Enel SpA. This partnership provided TradeWind with the capital and infrastructure it needed to begin developing projects in such states as Oklahoma, Missouri, and Colorado. In particular, Enel helped TradeWind to complete Smoky Hills Wind Farm. TradeWind has committed itself to using high-tech software and hiring highly trained specialists to create effective wind-power projects and select future project sites. For example, the company has developed custom mapping software and uses a form of radar called Sodar, which uses sound to measure wind speed. TradeWind also has hired four meteorologists—two of whom hold doctorates—and a staff biologist who leads the company’s environmental studies. That staff expertise, along with data collection from more than 100 meteorological towers owned by TradeWind, helps the company determine possible new project locations, as well as monitor wind turbines that currently are producing power. While being green is TradeWind’s business, the company makes sure it pays more than just lip service toward being environmentally friendly. Its headquarters is located in a LEED-certified building, which has a few small wind turbines out front that provide electricity. And last year, TradeWind replaced 10 of its company vehicles with Chevrolet and Ford hybrids. As TradeWind continues to grow, Coventry says the company’s leadership is determined to continue making a positive impact on the environment and the communities TradeWind partners with. “It’s something we take a lot of pride in,” Coventry says. “We’re committed to building a great company here.” EIQ
tradewind energy llc
wind: planning & development
Trusted Partners
The people who work here feel good about the product that we sell and the positive impacts that we have on our communities. —Rob Freeman, CEO
Some qualifications that set TradeWind Energy apart as one of the premier wind-project development companies today: Full Service The company has assembled a diverse, talented team of meteorologists, biologists, and engineers. Financially Strong TradeWind is backed by Enel North America, Inc., one of the largest publicly held utility companies. Experienced The senior management team has more than 80 combined years of experience in utility-scale and independent power-project development.
Concept to Completion Wanzek Construction provides complete renewable energy solutions for our customers. We have the financial strength, experience and resources to selfperform all aspects of your wind power project, handling everything from electrical system design and transmission lines to substation construction and tower erection. We are the only end-to-end construction solution and we’re ready to work for you. Get Responsive Constructors on your project. Contact Wanzek today.
energy international quarterly may/june 2010
BOP construction electrical roads foundations erection/heavy lift
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wanzek.com | 701.282.6171
wind: planning & development
crownbutte wind power North Dakota company creates a complete and profitable business model for the wind-power industry by cristina adams
when timothy simons founded crownbutte Wind Power in 1999, he was betting that renewable energy in general—and wind power in particular—promised to be the next big market niche. Attitudes toward global warming and carbon emissions were changing, concerns about climate change were being taken seriously, and there were no wind projects under development in the Dakotas or Montana. The time was ripe, so he jumped in feet first. “He knew that when the US decided to become a world leader in renewable energy, he would be standing prepared with a pipeline of projects from greenfield all the way to shovel-ready,” says Dr. Terry Pilling, Crownbutte’s executive vice president. A publicly traded wind-energy company, Crownbutte focuses on the development, ownership, and operation of wind-energy projects, largely in the North Dakota/ Montana region. When it first opened for business, Crownbutte pursued brownfield (underused or empty industrial facilities that are open for redevelopment) and turnkey development projects. One of its early endeavors involved a 2.6-megawatt wind project—the first utility-scale wind project in either of the Dakotas—that Crownbutte built and then sold turnkey to an electric cooperative. Following that success, the company then developed a 19.5-megawatt project in Montana and sold it to Montana-Dakota Utilities. But those were the early days, and Crownbutte has been in the business long enough to rethink its philosophy. “From this point forward, we want to develop, construct, and then own and operate our projects, rather than follow our previous develop-and-sell model,” says Pilling, a physicist who left academia to join the company in 2008.
at a glance location: mandan, nd founded: 1999 employees: 7 area of specialty: development, ownership, and operation of windenergy projects
The new merchant model means that Crownbutte will leave behind the traditional method of negotiating power purchase agreements with utilities, and instead sell its power directly to the grid via the Locational Marginal Pricing market established through the Open Access Transmission Tariff. In other words, Crownbutte is cutting out the middle man and going directly to the buyer, just like a utility. Of course, it’s not possible to do this all over the United States, but there are definitely electricity markets where the direct sale is alive and well—and benefitting the bottom line.
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Corwnbutte Development Process To begin the development of a utility-scale wind farm from scratch, Crownbutte goes through an extensive development process to ensure successful completion of the project: ➊ Identify the transmission capability suitable for a park of a specific size within the larger but widely scattered transmission system. ➋ Conduct topographical studies to determine the most promising locations by using the available meteorological data. ➌ Configure an initial park array to determine the parameters of the park with regard to transmission capability. ➍ Procure the necessary land-lease options for the properties under the park’s footprint. ➎ Install site-specific meteorological instrumentation (allowed by the land-lease options). ➏ Accumulate sufficient, long-term meteorological data at the site. ➐ Retain a certified consulting meteorologist to prepare a financeable wind report. ➑ File an interconnection application with the appropriate system operator. ➒ Apply for local, state, and federal permitting as necessary, based on the size and location of the project. ➓ Prepare the final site designs for the collector system, service roads, junction boxes, and foundations. Once these steps are complete, Crownbutte can secure project-financing partners, purchase wind turbines, and kick off construction.
crownbutte wind power
From this point forward, we want to develop, construct, and then own and operate our projects, rather than follow our previous develop-and-sell model. —Dr. Terry Pilling, Executive Vice President
Crownbutte focuses on the development of North American windfarms.
“Even though it’s still difficult to get initial project financing based on the merchant model, it’s much better from a profitability point of view,” Pilling says. “As time goes on, we believe this model will become the new standard in renewable-energy operation.” Wind power may not be a field for those with little patience, but Crownbutte’s perseverance has certainly paid off. The company currently has projects in all stages of development, 10 of which have a meteorological tower on site. Of those 10, 6 have submitted interconnection applications, 3 are in the current system impact study, 2 in the defining last stage, and 1 is set to begin construction. It could be that its location in Mandan, North Dakota, has something to do with its success, although the company has plans to expand throughout the country. According to Pilling, wind speeds in North Dakota and Montana are among the highest in the United States, while turbulence and variation in wind direction are very low. This trans-
lates into more power generation per turbine. And while coal continues to be the region’s primary source of power, with more than 92 percent of the market, wind is gaining ground. So is Crownbutte. Of several dozen projects from the region currently in transmission-impact studies, two of Crownbutte’s projects were the only ones fast-tracked to the definitive planning phase because there was available transmission—and upgrades weren’t necessary. “This tells us that we are really the only company that understands the limitations of the current transmission system, as well as the feasibility of entering the merchant market,” Pilling says, adding that this will undoubtedly change over the next 5 to 10 years. And as that changes, Crownbutte will adapt its strategy in anticipation. “It’s always smart business to keep a close eye on the physics and the politics of the industry,” Pilling says, “and thereby stay just ahead of the crowd.” EIQ
energy international quarterly may/june 2010
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wind: planning & development
wind: building & maintenance
Kent Power’s installation of anchor bolts for a 100kW wind turbine.
kent power inc. Midwestern firm opens communication and diversifies into the renewable-energy sector by cristina adams
just that kind of service, dedication, and attention to detail. back in 2005, when hurricanes katrina and “What sets us apart from the competition is our commitRita hit the US Gulf Coast, Kent Power sent crews from ment to maintaining the family-business approach,” Kent its Michigan headquarters to the devastated region. Moving from state to state, the crews worked to repair systems says. “It means that we have a strong employee base and we retain key individuals throughout their careers.” and get power lines up and running; some stayed in the area for up to 10 months until power and some semblance That has been the story behind Kent Power’s success in an of normalcy was restored. industry that is both fiercely competitive and hard to break into. Back in the late 1950s, Richard Kent’s father and two According to Troy Kent, the company’s president and son of its CEO, this kind of action isn’t unusual for the compa- uncles founded Kent Electric. In the 1970s, the trio parted ways in business, and the younger Kent took the opporny. It is, after all, a family-owned and family-run business, tunity to purchase the company’s outside-line division in and management attributes at least a part of its success to
at a glance location: kent city, mi year founded: 1978 full-time employees: 20 – 40 at headquarters; 200 in the field
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kent power, inc
wind: building & maintenance
What sets us apart from the competition is our commitment to maintaining the family-business approach. It means that we have a strong employee base and we retain key individuals throughout their careers.” —Troy Kent, President
1978. Since then, Kent Power has moved into communications, natural gas, steel fabrication, and renewable energy, while cementing its position as a leader in large-scale electrical-utility construction. “We expanded into these arenas to help diversify our workflow, our customer base, and our resources,” Kent explains. “While the energy divisions continue to be our base revenue generators, the communications and steel groups are building a strong foundation for the future.”
involved the installation of 7.2 miles of six-inch plastic main cross-country and along residential roads to feed an Allay plant in Muskegon Country, Michigan. True to its promise, Kent Power completed the project ahead of schedule and was awarded additional projects by the client. But Kent Power hasn’t stopped there. It now has a cellular division, a steel-services division, and a renewableenergy division, all of which promise to become stars in their own right. Renewable energy, in particular, has become significant in light of global concern over climate change. As Kent points out, talking about renewable energy is one thing; taking action and doing what’s needed is another. That’s why, in 2007, Kent Power began looking for ways to reduce its carbon footprint through the use of renewable-energy systems. Kent Power plans to walk the walk by wielding its expertise and its technology to ensure that it contributes to the renewable-energy movement.
Currently, Kent Power’s customer base is made up of 80 percent utility, 10 percent industrial, and 10 percent commercial. From its 185,000-square-foot Michigan headquarters, which includes office and warehouse space, the company directs and oversees its projects. Its footprint might be deep in the Midwest, but its services are in demand around the country. On any given day, there are 20–40 employees at headquarters, and 200 crew employees in the field who might be erecting a cellular tower in Florida, servicing a substation in Ohio, or installing medium-duty “Growth in the renewable-energy and utility sectors are at the top of our list,” Kent says. “We plan to make great wind turbines in Illinois. strides using technology and safety processes to improve communication and performance.” Kent Power’s original (and flagship) divisions are comprised of power lines and substations. In both of these Even though the electrical-utility industry as a whole has groups, management emphasizes its quality of service, its experienced a slowdown in the current economic climate, safety record, and its ability through strategic planning, Kent points out that the company hasn’t slowed its pace— ensuring that projects are completed on time and on budget. That’s no simple feat, particularly when you’re talking there are always new opportunities and new relationships. It’s exactly this kind of energy—supported by a commitabout constructing a 345-kilovolt electrical substation or ment to innovation, expertise, and service—that drives repairing miles of power transmission lines. the company’s success. In 2003, the company ventured into natural-gas construction and has been steadily gaining market share since. This “We have always been focused on process improvement and utilizing the best practice and best equipment for the task kind of underground construction of natural-gas lines has offered up some exciting challenges. One such project was at hand,” Kent says. “Customer service and customer satisfaction are always job number one.” EIQ the completion of a turnkey methane line in 2006, which
Kent Power Inc.: By the Numbers Customer Base 80 percent utility 10 percent industrial 10 percent commercial
185,000
Number of square feet at its Michigan headquarters, which includes office and warehouse space, where the company directs and oversees its local and national telecommunications-infrastructure projects.
20 – 40
Number of employees at its headquarters on any given day.
200
Number of crew employees in the field, servicing outside-plant projects for Kent Power’s clients across the country.
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(800) 299-8658 | (303) 623-8658 | www.wazeeco.com
For the past 85 years Wazee Electric Company, under Colorado State Electrical license #21, has served the Rocky Mountain Region. Our area of focus is industrial work. Primarily, electric motor service and repair focusing on larger motors, up to 20,000 hp. Wazee Crane, started in 1961, manufactures overhead bridge cranes and has a dedicated team of crane technicians who are leaders in repairing overhead crane motors and controls. In 2007, Wazee Wind was launched to meet the growing demand for on-site wind generator repairs and maintenance. Wazee Companies | 2020 West Barberry Place | Denver, CO 80204 (800) 299-8658 | (303) 623-8658 LOCAL | (303) 623-2097 FAX www.wazeeco.com
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ny and it immediately began to branch out and expand its offerings, working on welders and motors as well. “That point in time is really when I think we became more of an industrial-type company verses a general contractor for electrical,” Armstrong adds. Today, Wazee mitigates challenges in both renewable and traditional forms of energy for their clients—heavy-industrial players that the company classifies as utility, aerospace, and large-scale manufacturing entities. There are actually three subsidiaries that comprise the parent company. Wazee Electric (WE) is still an electrical contractor for the industrial arena, doing highly specialized electrical work. This includes motor controls, motor rewinding and repair, and any sort of custom generators. Wazee Wind (WW) does up-tower repair of generators and electrical components, as well as equipment-hoist inspection and repair. Finally, Wazee Crane (WC) manufactures and services overhead traveling-bridge cranes.
Trevor Armstrong, president
Wazee Companies, LLC Serving the heavy-industrial market with cross-trained technicians and diversified project management by christopher cussat
at a glance location: denver, co employees: 55 sales growth in last year: 15%+ web site: wazeeco.com
According to Chris Donahue, Wazee’s field-service and wind-division manager, WW has the potential to be the fastest-growing division in the company. “We definitely see the wind division as probably our biggest mover in the next 5-to-10-year span,” says Donahue, who believes that the federal administration’s push for renewable energy has helped propel this growth. Wazee was able to effectively utilize its experience from its long history and inject itself into the renewable-energy arena at full force. “We just took our expertise from the work we’ve been doing for 85-plus years with motors and generators on the ground, and applied it to the specific niche of doing similar uptower work,” Donahue says. Wazee approaches innovation through a network of knowledge sharing with established partnerships is its industry. The North American Wind Service Alliance (NAWSA) is a membership group that is comprised of 10 privately owned companies that are broken down by region and spread throughout North America. All of the companies meet regularly each quarter to bounce ideas back and forth. “By having that alliance, we’re able to do effective marketing, establish consistent industry approaches, and evolve our internal training to make sure we’re up to date on all the newest technology,” Donahue adds.
no matter how successful a company is, it Donahue believes Wazee’s competitive edge comes from could not exist without the people who comprise it. Perhaps that fact is no more evident than at Wazee Companies, the company’s ability to draw expertise and skill sets from LLC, where those behind the company’s success are part of all three of its divisions. “For example,” he says, “if our wind group is doing up-tower work and a specific motor a long-standing tradition of family values and friendship. or generator needs servicing, we will assist in bringing the generator or motor down, transport it back to our motor Wazee Electric (Wazee’s first entity) was founded in 1921 shop, and then draw upon our capabilities to handle that as an electrical contractor. Wazee president Trevor Armstrong notes, “Our primary scope at that time was to work motor’s rewind or reconditioning repair ourselves.” He adds that Wazee cross-trains all of its technicians, and that on basically anything and everything electrical—including residential, commercial, and industrial.” During the World it productively utilizes its NAWSA partnerships. “Our War II era, Armstrong’s grandfather purchased the compa- NAWSA alliance also gives us a very competitive edge
energy international quarterly may/june 2010
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wind: building & maintenance
wazee companies, llc
Wazee’s specialized electrical-repair work includes traditional motors (shown above) as well as wind turbines and wind-powered engines.
If there’s an issue that comes up inside of the industrial realm that we serve, almost always, we can solve it internally. —Trevor Armstrong, President
because we’re able to draw upon the resources of our NAWSA partners,” Donahue says. “If we have a big project coming up, we’re able to borrow anywhere from 3 to 50 technicians from other NAWSA companies to handle it.” Armstrong agrees, adding that Wazee is very vertically integrated. “If there’s an issue that comes up inside of the industrial realm that we serve, almost always, we can solve it internally.” Perhaps this efficient and adaptive structure
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gives Wazee one of its most impressive attributes—a 48hour response time. “Once we’re contacted, we can get to the site very quickly because all of our shops within the alliance are in a 10-hour-drive circle,” Armstrong says. “So if there’s an issue with a tower, we can be on-site within 48 hours anywhere in North America.” Since both of their families owned electrical contracting companies, Armstrong and Donahue basically grew up in the field and started working in the electrical industry at early ages. When they later met in college, a natural connection was formed. This lasting friendship and strong business partnership has directly contributed to the continuing success of Wazee. These two friends plan to grow Wazee even further, sustaining and advancing the company’s legacy of diversified energy and industrial offerings, renowned work, and family values. “I just want to continue to provide the same service and the same quality that we have for 88 years,” Armstrong says. EIQ
wind: building & maintenance
TGM Wind Services LLC Success of aerial-utility platforms skyrocket in North America by annie fischer
kevin darby, vice president of tgm wind services LCC, doesn’t know why the company he founded in 2009 with his father, Bud, is the first of its kind in the United States, but he does know this: it won’t be the last. According to Darby, TGM’s two aerial utility platforms— the tallest in North America, and shorter than only one other platform worldwide (in Finland)—are without a doubt the future industry standard for providing safe, efficient service for wind turbines. “We’re basically the guinea pig here,” Darby says, laughing. “People are waiting to see how it turns out. I expect that even by the end of 2010, we’ll have some competition here in the United States.” Manufactured by Bronto Skylift, a global market leader in truck-mounted hydraulic platforms, the TGM models can access areas 296 feet, or 90 meters, above ground. When elevated, they can withstand winds of up to 28 miles per hour, and the platforms’ weight capacity for operators and materials reaches 1,000 pounds. TGM service technicians
can drive the device directly to a turbine, and with onebutton automatic leveling of the outriggers, the aerials can be positioned, set up, and elevated in 10 minutes—a considerable advantage over competitors using traditional methods like cranes or repelling systems. Additionally, Darby points out, the nine-foot-wide self-contained platforms are equipped with integrated electricity, air-pressure, and water connections, so it’s never necessary to attach to the wind turbine, which offers owners relief from increased liability. “We can do everything from the basket,” at a glance he says. “It’s basically like a really big cherry picker—an extremely sophisticated, extremely safe cherry picker.” location: Those services include blade and tower inspections; blade, tower, and nacelle cleaning; repairs and any work on the exterior part of the turbine; and tower painting and refurbishment. Phased array ultrasonic technology provides customers with accurate and detailed blade assessments, and findings are digitally documented via both images and text. The logistics division provides complete door-to-door service, and TGM is fully staffed with lead
abilene, tx year founded: 2009 employees: 10 specialty: cleaning, repair, and refurbishment of wind turbines
Strategic Partner for TGM Wind Services: Bronto Skylift The Bronto Skylift S 104 HLA is the highest truck-mounted aerial platform on the market. HLA stands for High Level Articulated and represents the ultimate in high-rise access. All Bronto Skylift HLA units have excellent maneuverability, making swift road transport possible while giving access to large cargo like wind generators. Technical data of Bronto Skylift products Maximum working height
Maximum working outreach
Safe working load
s 78 HLA
78m
34m
200/440 kg
S 90 HLA
90m
33m
200/440 kg
33m
400/700kg
S 104 HLA 104m
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tgm wind services llc
TGM’s aerial-utility platforms can reach 296 feet above ground and can withstand winds of up to 28mph.
We recognized the need for a better, safer option in turbine service, and these aerials allow us to drive cost down and efficiency up. It only made sense to capitalize on the opportunity. —Kevin Darby, Cofounder & Vice President
pilot and escort-vehicle teams, completely equipped to provide proactive reliability. With more than 75 years of experience in providing service to the US military and the North American oil industry, the owners understand better than most the need for efficiency. For them, entering the wind industry is a simple extension of that value. “We have one of the largest national windindustry markets right in our backyard—more than 2,500 turbines within 70 miles,” Darby says of the company’s Central Texas home base in Abilene. “We recognized the need for a better, safer option in turbine service, and these aerials allow us to drive cost down and efficiency up,” he says. “It only made sense to capitalize on the opportunity.” Following the initial capital investment, a relatively low overhead just makes it a volume game, and more aerials means more profit; TGM anticipates six by 2011, a growth projection of 200 percent. Considering the devices have been available in Europe for a number of years now (mainly as a rental option), TGM eventually wants to offer a leasing alternative, as well. As for international expansion, Darby fully expects the company to be operational in Canada by the end of 2010, and it’s also looking at offshore opportunities near the North Sea and the Irish Sea. “We’d like to implement there so we’ll be ready for offshore opportunities here when they arise,” he says. Another notable quality of TGM’s approach is its ecofriendly cleaning process. “It’s popular now to use power
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energy international quarterly may/june 2010
tmg wind services llc
wind: building & maintenance
washing, but that just dilutes the oil on the turbines, and there’s no way to manage the water flow when it hits ground,” Darby explains. “Instead, we use a mist—there’s no runoff, and if for some reason the chemicals make it to the ground, they neutralize within 27 days.” If scrubbing is required, TGM collects, transports, and disposes of any hazardous materials. “Since our equipment is rigged with a water line, we could use pressurized water if we needed to, but our mist provides more consistent service,” he says. The main focus now for TGM is on growth. It currently employs 10, including the aerial technicians, a senior operations manager, an assistant operations manager, and administrative assistants who handle receivables. Each aerial unit will employ three to five operators, so Darby expects to hire 15–20 more employees by the end of the year. “We’ve got a lot of interested folks, and the faster we can get [the aerials] manufactured and across the pond, the better,” he says. “We’re ready to get to work.” EIQ
a message from talbert logistics Talbert Logistics’ strategic alliance with TGMWind Services has proven to be successful in North America. TGM utilizes a proactive approach toward TMG’s aerial-lift system can be positioned and elevated in less services which has been beneficial to than 10 minutes, allowing for a time-efficient turbine installation. both of our companies.
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Moodie Implement Company Montana’s #1 Supplier of Lewistown, MT 59457 406-538-5434 EIQbleeds.pdf
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Havre, MT 59501 406-265-5518
Products & Service Chester, MT 59522 406-759-5010
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We Harvest the Wind
tm
Harvest the Wind Network is made up of qualified dealerships across North America with the ability to:
-Conduct professional site assessments -Put together investment pro forma for project -Suggest the most elite and quality turbine -Coordinate certified installation crews -Service and maintain your project -5-year service plans sold with turbines -Warranty with all products -From 5kW - 2.1 MW, we have the turbine that’s best for your project
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877.225.3570 www.weharvestthewind.com energy internationalinfo@BTIWindEnergy.com quarterly may/june 2010
wind: building & maintenance
BTI Wind Energy, LLC In the wake of tragedy, family-owned company redefines itself and its community as one of the greenest in the nation by daniel casciato
on may 4, 2007, greensburg, kansas, was devastated by a powerful tornado that ripped the town apart. Along with other businesses, the tornado completely destroyed BTI Greensburg, a family-owned, fourth-generation John Deere dealership. In the aftermath, the small, southwest-Kansas town decided to rebuild itself as the greenest city in America. BTI Greensburg was inspired, and its president, Kelly Estes, and his brother, general manager Mike Estes, served as leaders in the town’s newfound initiative. Canadian-based Endurance Wind Power donated a wind turbine to BTI, to power its construction site and facility. Not only did the turbine power the site, but it became part of the 54 points that led to a LEED Platinum certification once the building was completed. This ultimately spearheaded the initiative to start BTI Wind Energy, LLC.
tinuing its strong family tradition behind the company, Kelly recruited his daughter, Haley, to manage BTI Wind Energy’s business-development and marketing initiatives. In addition, Haley’s cousin, Brad, joined her to oversee the company’s wind operations. BTI also recruited some of the best experts in the industry, such as Andrew Trapanese, who serves as the director of project development. As the company grows, it intends to add more experts as needed. With Endurance’s help, as well as BTI’s local support, installation crews, and overall quality service setting it apart from the competition, BTI has developed more than 200 distributor locations across 44 US states and 7 Canadian provinces. To build on the traditions of the Midwest farming community, BTI trademarked the motto: We Harvest the Wind.
Endurance Wind Power (s343) BTI Wind Energy functions as the master distributor throughout North America for Endurance Wind Power turbines. Below are specifics on one of BTI’s best-selling home wind-power systems.
Annual Energy Production 25,000
5,000
20,000 AEP (kWh/hour)
Power delivered to grid (watts)
6,000
4,000 3,000 2,000
Endurance Wind Turbine (S343) Configuration: 3 blades, horizontal axis Rotor speed: 166 rpm Weight: 600 lbs
15,000 10,000 5,000
1,000 0 mph 0 m/s 0
location: greensburg, ks founded: 2008 employees: 20 sales growth in the last year: 50%
Its national network of dealers, known as the Harvest the Wind network, has specific accreditation including siteassessor certifications, investment-consultation certification, and a series of trainings from orientation to more advanced courses. These dealers include wind specialists
The Esteses joined forces with Endurance to function as its master distributor in North America for Endurance Wind Power turbines, and is now positioned as an industry leader in wind technology, sales, and service. Con-
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bti wind energy, llc
We believe we have a superior wind-energy product because of its high quality, as well as a life cycle and life span that’s longer than many competitors. —Haley Estes, Business Development & Marketing Director
who perform site assessments for customers to ensure that the wind turbine is properly installed and gets the most production possible.
across the country have the same core values that we have, which is that the customer is number one and that we make sure we are taking care of them,” he says.
“The wind specialists truly add value to the entire project by helping the customer understand the grants and incentives available to them, and by working with the utility company to complete interconnection, along with any other issues that may arise,” Haley says. “The wind specialists can handle it all. They‘re not afraid to say no to a location if there’s not enough wind or if it doesn’t make sense for the customer.”
Each distributor organization is equipped to take all projects from conception to completion and provide complete service support for the life of the turbine. Additionally, every turbine is sold with a five-year service plan and a five-year warranty. While building this business, the Estes family knew installation was also crucial to the turbine’s lifespan. The Harvest the Wind network dealers have Endurance-trained installation crews deployed to each project. These crews are insured, are bonded for large projects, have licensed electricians to complete the details, and adhere to the same mission of taking care of the customer first.
According to Mike, local support in the places the company services is critical to the company’s success. There are two certified service technicians per territory, each manufacturer-trained by Endurance. Additionally, BTI and Endurance have partnered with local community colleges that conduct the training so the service technicians can earn college credit. “All of the dealers that we work with
Needed: Wind-Industry Standards for Small Ventures Moving forward, the greatest challenge BTI Wind Energy faces is that there are no current standards for small wind-industry manufacturers. Haley Estes always tells consumers before they purchase a turbine, even if it’s not with BTI, to do some research and have a company demonstrate its turbine’s power production, safety, and reliability. However, she’s hoping for a set of standards to be developed soon to protect consumers. “Reputable manufacturers like Endurance are establishing a Small Wind Certification Counsel to protect our industry,” she says. “In a year’s time, we expect to have a set of standards developed to protect the consumers so companies can’t lie about their power production.”
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The final key differentiator that sets BTI apart is the turbine itself. “The product of Endurance is absolutely incredible,” Haley says. “Since we’re the exclusive dealership network for Endurance, we believe we have a superior wind-energy product because of its high quality, as well as a life cycle and life span that’s longer than many competitors.” The future looks promising for BTI Wind Energy. Mike credits that to the shared values between BTI Wind Energy and the parent firm’s agriculture side. “Our grandfather and father built BTI on strong Midwest values and ethics,” he says. “We have a very high commitment to customer service and support. We placed huge emphasis on that. That’s why we’re excited to take what we learned on the agriculture side and transfer it to wind energy. It really comes together nicely because customers on the small wind area haven’t received a good support and service system. We’re out to change that model.” EIQ
wind: building & maintenance
RVT personnel confer between test samples of a wind-turbine base mat concrete placement.
river valley testing corp. Three brothers break out on their own to embrace a service-minded business model by cristina adams
at a glance location: neenah, wi employees: 20–35 area of specialty: geotechnical exploration and consulting, and constructionmaterials quality management
twenty years ago, the three barker brothers, working in different but complementary industries, decided to go the entrepreneurial route and start their own company. Howard, the eldest, was a concrete expert, George worked in the construction industry, and Alex was a geotechnical engineer. So, naturally, the three got together and founded a construction-materials-quality management and geotechnical-consulting business, and they named it River Valley Testing Corp (RVT). According to Alex Barker, president of RVT, the founders had grown tired of working for companies whose primary focus was limiting liability and hitting their internal bottom line, instead of the client’s success. “We believed that a better business model would be to listen to the client’s needs,” Barker says. “Then we could craft recommendations and a scope of service that balanced construction costs with the risk tolerance of the design and construction team.” It sounded like a good idea, so the brothers seized the
moment. That was in 1990. Since then, the company has grown at a steady pace, adding clients, projects, and employees to its ever-growing pedigree. And although Howard left RVT in 2000 to pursue other opportunities, the two remaining brothers, Alex and George, stayed to guide the company on its course to success. So what exactly does it mean to offer construction-materials-quality management? Plenty, if you’re a contractor or a design firm. As Alex Barker describes it, these services encompass a broad range of testing and quality assurance. On the most basic level, RVT will assure that the construction materials meet a project’s required specifications. That can include testing the strength of the soil that a building’s foundation will rest on, testing the actual foundation material, or testing a structure’s framework and strength. However, it also involves working with clients to identify and resolve a project’s potential blips or issues before they become serious problems. “We have found that addressing
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river valley testing corp.
We provide the knowledge and depth of service of the larger firms, but with the versatility and personalization of a smaller firm. —Alex Barker, Cofounder & President
possible issues early on lowers the construction cost of a project,” Barker says. In one building project, for example, the RVT team spotted plumbing lines that seemed to be in the wrong place and pointed it out to the contractor. As it turned out, even though plumbing wasn’t where it should have been, it was relatively easy to rework prior to construction. Had the mistake not been spotted, Barker estimates it would have cost thousands of dollars to rip up the floor postconstruction, move the pipes and lines, and then repour the foundation.
On the geotechnical side, RVT gets the call before the foundation-design phase of construction to determine how to size a foundation to properly support a building. This bit of modern technology involves drilling deep into the ground and collecting soil samples. In addition, RVT engineers can offer input on construction-related issues, such as groundwater control and site preparation. RVT’s strategic long-range plan called for significant growth and to lead the construction industry in building better-quality structures at a lower cost. This strategy was the catalyst for launching two new divisions: quality-management services, focusing on quality management during the construction process, and RVT energy division, focusing on power-plant facilities and wind energy. Until recently, the company’s scope has been largely regional; its engineers are licensed to work in eight states throughout the Midwest. However, over the past year, RVT has geared up its team to provide services at a variety of locations around the United States, as it bids on projects from Virginia to California. More often than not, RVT is competing against larger national firms in those bids. But Barker says that’s not a huge worry—RVT’s size is its great advantage. “We provide the knowledge and depth of service of the larger firms, but with the versatility and personalization of a smaller firm,” he says. That’s probably why the company was tapped to work on the first phase of the Fowler Wind Farm in Indiana. At the time, it was the largest wind-farm construction project— 222 turbines—in the country. The challenge was an accelerated construction schedule that required RVT to get its personnel to the project and start testing services on record short notice—within two weeks of being awarded the job. To ensure that its team would hit the ground running, RVT sent an advance team to the site to nail down the details, hire and train extra field crew, and find accommodations for its transplanted employees. “We take pride in our responsiveness to clients,” Barker says. “So every day becomes a juggling act to move our personnel from project to project, in the most efficient manner. It requires good communication to keep things flowing smoothly.” EIQ
wind: building & maintenace
Vesper Wind Innovation has created a forerunner in the wind-turbine-blade analysis market by cristina adams
at a glance location: reston, va, and oak harbor, wa employees: 6 area of specialty: wind-turbine blade measurement, analysis, and quality control 2009 revenue: $600,000 projected 2010 revenue: $2.5 million
how does it feel to be the only company in North America that offers certain kinds of services? Just ask Eric Lundberg. As president and cofounder of Vesper Wind, he knows exactly what it’s like to be standing on the edge of a field that, for now, is vast and empty—except for Vesper, which is currently the go-to company for windturbine-blade analysis, quality control, and inspection on the continent. Wind-turbine technology is a highly specialized field; narrowing it down further to blade measurement, inspection, and analysis winnows out the competition and shrinks the field to the size of an urban container garden. And that’s a good thing for Vesper, which has steadily expanded both its revenues—from $600,000 in 2009 to a projected $2.5 million in 2010—and its list of clients since first opening for business in October 2008. According to Lundberg, one of the secrets of Vesper’s success so far is the founders’ backgrounds in a broad range of industries. Lundberg has worked in aerospace, laser-based
automation, and even special effects for the motion-picture industry, while Vesper cofounder Michael Draszt racked up experience in metal fabrication and composites manufacturing, which included work on projects for NASA’s Space Shuttle program. “Large complex shapes are the norm in the aerospace industry,” Lundberg says. “As a result, we have been able to adapt aerospace techniques, and innovate completely new techniques that meet the unique requirements of wind-turbine-blade production.” In short, their collective experience, while impressive, has also allowed them an extraordinary perspective on how to approach and solve problems that are unique to windturbine blades. And that’s good for business. The idea for Vesper came about when Lundberg and Draszt, who were both working on various pilot projects for GE Wind, recognized the need within the industry for expert, dependable inspection and quality control of wind-turbine blades. With encouragement from GE and industry suppliers, that need became their opportunity. “Our experience
Advanced Analysis
4.000
A key criteria of blade quality is conformance to the nominal aerodynamic and structural shape. Vesper has developed the most advanced measurement and analysis process available for wind turbine molds and blades. Below, a map of surface shape deviation of a standard blade tip. The colors indicate the magnitude of deviation from the blade design specification in millimeters (mm).
3.500 3.000 2.500 2.000 1.500
0.545
1.000 1.573
0.500 0.831
-0.000 1.641
-0.500 -0.716
-1.000 -1.500
-3.662
3.536
-1.735 -2.169
0.212
-2.000 -2.500 -3.000 -3.500 -4.000
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vesper wind
10.000 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0.000
Chord: +5.6 Chord: -1.3
-1.000
Chord: -6.2 Chord: -2.2
Max Thk: -5.3
Max Thk: -7.1
Max Thk: -8.4
Max Thk: -9.8
-2.000 -3.000 -4.000 -5.000 -6.000 -7.000
LE Rad: +1.7
LE Rad: -2.8
LE Rad: +4.6
LE Rad: +7.4
-8.000 -9.000 -10.000
Calculated Statistics Vesper performs blade statistical analysis for all new designs. Above, an airfoil analysis of data showing multiple blade cross-sections is shown. The calculated ‘Maximum Thickness’ and ‘Leading Edge’ (LE) Radius (in millimeters) are being compared to the design specification. The color bar legend indicates the deviation from the blade-design specification in millimeters.
gave us insights into how we could accomplish the inspections and ensure quality—insights that may not have been evident to others looking at the same issues,” Lundberg points out. And there are no small issues when it comes to wind turbines. Consider first the financial outlay: Blades account for roughly one-third of the cost of a turbine. Never mind their size. The blades used for commercial power generation, for example, are huge, ranging in length from 30 meters (about 100 feet) to 62 meters (about 205 feet). Moreover, the design of the blade’s shape is what converts wind into mechanical power, which, in turn, generates electricity. If the blade shape differs from the design, the turbine will suffer from efficiency and production slowdowns—which means less electricity for customers and less revenue for the turbine owner. Because of the blades’ large size, measuring their shape has, until now, been challenging, time-consuming, and expensive. Now, thanks to new techniques developed at Vesper, turbine owners can know that their blades are uniquely designed to achieve optimum performance once assembled as part of a turbine. It’s a niche that only Vesper has occupied so far, and its scope of customers testifies to the company’s unique position in the field. In fact, Vesper now works with the entire wind-turbineblade supply chain, from tooling suppliers (which make the molds for blade production) and blade manufacturers to OEMs like GE. “What sets us apart from other companies that provide metrology [measurement] and inspection services is our focus on wind-turbine blades,” Lundberg says. “They are a completely different animal; there is no other product manufactured in such a large quantity [tens of thousands per year] that are so large in size and complex in shape.”
KNOW YOUR BLADES
& MAXIMIZE TURBINE PERFORMANCE • MOST ADVANCED BLADE & PRODUCTION ANALYSIS • TOOLING SETUP AND CERTIFICATION • inspection; plug/mold truing; certification of conformance • BLADE ANALYSIS • shape/angle of attack; airfoil; leading edge • IN-LINE PRODUCTION CONTROL • 15 min. blade inspection; statistical process control; process capability indexing (Cp, Cpk) OPTIMIZING WIND TURBINE PERFORMANCE VESPERWIND.COM +1.703.232.1560
THE LEADER IN TURBINE BLADE ANALYSIS AND QUALITY CONTROL
About 70 percent of Vesper’s work is done on-site; the remaining 30 percent is devoted to research and development, with an eye on better production processes and blade designs. Naysayers notwithstanding, Lundberg believes the future of the wind turbines is bright, and that the market is in for dramatic changes over the next decade. As for Vesper’s own horizon, expansion is likely to happen sooner rather than later. In the next 18 months, the company plans to expand its operations into Europe and South America, a move into Asia is set to follow in two years—not too bad for a company that’s not even two years old. Despite Vesper’s success, Lundberg admits that the industry as a whole has been hampered by a lack of available financing for equipment and normal business functions, thanks to the ailing economy. Even so, he views it as a short-term obstacle, and the future still looks long and promising. “We’re fortunate to be in a growth area of a growth business,” he says. EIQ
speciality products
Rocky Mountain Pellet’s plant in Colorado is able to store inventory before processing, ensuring a high-quailty product.
Rocky Mountain Pellet Company inc. Colorado-based company is following Europe’s lead with energy derived from pine pellets by cristina adams
john frink had been in the recycling industry for more than 20 years when he decided the time had come to start his own company. For many of those years, he worked in auto recycling, using and recycling various products from cars, such as antifreeze, batteries, steel, and oil. Then in 2007, Frink sold the company he then owned, and he found himself in the unlikely position of thinking about a career change. Instead, he discovered that vast forests of lodgepole pine trees were dying across the state of Colorado, thanks to an infestation of mountain pine beetles. Nearly 1.5 million acres of dead and dying trees were left lying where they fell. That started him thinking, and he began researching how the unused resource could be utilized. He looked at turning the wood into fence posts, pickets, chips, and
other marketable wood products. But in the end, he settled on pellets, founding Rocky Mountain Pellet Company Inc., for which he serves as president. “I saw such a large resource going to waste and starting thinking about what could be done with it,” Frink recalls. “Wood pellets seemed to be an industry with the greatest growth potential and the best use of the resource.”
at a glance location: walden, co year founded: 2007 employees: 50 area of specialty: manufacture of super-premium pinewood pellets for home-heatingfuel market
For those who are new to the concept, wood pellets are made from the wood, not the bark, of the tree and can be used for various functions. But their main use is as homeheating fuel in pellet stoves and central-heating furnaces. They’re made by compressing wood fiber—in the case of Rocky Mountain Pellet, from the dead pine trees—with the right amount of moisture. They are, as Frink points out, one of the most environmentally friendly sources of energy, as
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rocky mountain pellet company inc.
We’re just now learning about how pellets can be used in an industrial setting, which they already do in Europe. As that market segment grows, we’ll be there to help supply industrial pellets. —John Frink, Founder & President all natural products that become condensed wood pellets burn cleaner and hotter than regular wood chips. What’s more, while many pellet makers use sawdust and ground wood chips to make their product, Rocky Mountain Pellet uses no by-products in its pellets. According to Frink, many pellet mills are located near sawmills; as a result, by-products from those mills are often mixed in with the wood used to make the pellets. Not so at Rocky Mountain Pellet—its pellets are all natural, all wood. “We wanted to be independent of sawmills and other mills,” Frink says. “The key to our success is quality and consistency.”
Once the logs are chipped, the wood is dried and fed through various mills at the company’s 20,000-square-foot manufacturing facility in Walden, Colorado. Following the cooling process, the pellets are then loaded into 40-pound bags and shipped to locations as far away as Massachusetts, Wisconsin, and Kansas. For now, Rocky Mountain Pellet counts retailers and wholesalers among its customers, including national chains like ACE Hardware and Sutherland’s, as well as Universal Forest Products Inc. (UFPI), the company’s largest distributor. Through UFPI’s marketing and sales staff, the Rock Mountain Pellet’s product is sold to lumber locations around the country and to bigbox stores and smaller retailers. That kind of exposure both helps to grow Rocky Mountain Pellet’s business and to raise awareness around the country of the advantages of using wood pellets. As Frink points out, European countries have already discovered the advantages of wood pellets. “The Europeans have done a good job of diversifying their home-heating-fuel industry,” Frink says. “The United States is playing catch-up, and we’re helping to lead that charge.” Not surprisingly, the spike in oil and natural-gas prices over the past several years has helped spur interest, both commercially and residentially, in wood pellets. They’re less expensive, they burn efficiently because of their low humidity content, and, thanks to their compact size, they’re both easy to transport over long distance and easy to store. “Products like these will break our cycle of dependence on foreign oil and provide us with a more independent alternative for home-heating fuel,” Frink says. The company is also looking at ways to market and sell the by-product created by the bark of the pine trees. As the bark is fed through a chipper, it creates a by-product that Frink believes could be used for horse bedding or landscape material. It’s just a question of which product will sell better. In addition, Rocky Mountain Pellet plans on eventually breaking into the industrial market. While the company’s current focus is on residential use of its pellets, industrial use could prove both popular and profitable. “We’re just now learning about how pellets can be used in an industrial setting, which they already do in Europe,” Frink says. “As that market segment grows, we’ll be there to help supply industrial pellets.” EIQ
How Rocky Mountain’s Pellets Perform Super Premium Qualification Bulk Density 40-46% Fines <0.5% Ash 0-0.5% Moisture </=6% BTU/lb
Anna Ryan: aryan@rockymountainpellets.com
Results 44.70% 0.16% 0.35% 3.99% 8421
speciality products
Twelve ofW. O. Grubb’s cranes working on an emissions upgrade at a power plant inVirginia.
w. o. grubb Crane Rental, Inc. A tradition of excellence in crane-lift services accross North America by erica archer
w. o. grubb crane rental, inc. has been combining strong family ties with a national reach ever since the 1960s, when it was founded by Willie Grubb, father of current president Bill Grubb. Back then, a customer asked if Willie had a boom to fit a cable backhoe. Willie said yes— then rushed home to build one. Forty-seven years and five branches later, the family spirit of hard work and innovation remains strong, says Michelle Grubb, W. O. Grubb’s sales and marketing manager. “We’ve been fortunate to have so many people who’ve been here for 25 years or more, many tracing back to when my grandfather ran the business.” W. O. Grubb primarily serves the Mid-Atlantic region and the Northeast, with many clients in the heavy industrial
and energy sectors. But during the wind-farm construction boom of the past few years, the company took its cranes as far as Texas and Iowa. Transporting the cranes required for wind-tower erection and maintenance is not a simple operation, but W. O. Grubb brings almost 50 years of experience to the job. Some of the larger cranes require between 20 and 30 truckloads of components, and many of these cranes require other cranes to assist in their assembly. A crane’s transport logistics becomes more complicated with each state that it passes through, because of the differing transport regulations and permitting. “It’s a huge logistical undertaking to be able to get the required permits
energy international quarterly may/june 2010
at a glance location: richmond, va employees: 260 area of specialty: crane rental, steel erection, and rigging
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speciality products
w. o. grubb crane rental, inc.
20 â&#x20AC;&#x201C; 30 Number of truckloads of componets required for the construction of some larger cranes.
A close-up of a wind jib attached to a W. O. Grubb 1600 crawler crane, allowing for an easier and more cost-effective erection of wind turbines.
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w. o. grubb crane rental, inc.
from each state and local governmental agency,” says Jim Price, W. O. Grubb’s vice president of operations. “Even though all of the cranes are broken down into smaller components, there are some very large parts that need to be transported, each requiring specialized permits that have long lead times.” Despite the intricacy of crane transport, the demand for wind-farm-capable equipment like lattice-boom crawlers makes the trip cost effective for both company and customer. “The further you go with one of these big cranes, the higher the cost to the customer, because the transportation into a particular wind site is a big portion of the cost of crane service,” says Price. “Transporting all the parts and pieces to the site and putting them together is a major task and requires careful coordination to accomplish it efficiently.” The company’s service to the wind market and other customer segments has helped propel it over the competition. In 2009, W. O. Grubb was named the 17th largest North American crane-rental company by American Cranes & Transport magazine, up one rank from the 2008 list. During the construction downturn, the majority of W. O. Grubb’s business has been in the power market, major infrastructure, and government-related work. Military bases in Maryland and Virginia also remain a reliable source of work. “There’s never been one dominant market segment in our business,” Michelle notes. “That’s part of being successful—being able to change and adapt with the economy and to our customer’s needs, because we provide service in a diversity of markets for many different companies.” However, the market offers considerable challenges. “During this time of economic uncertainty, construction companies are doing well if they can maintain their customer base and avoid digging a financial hole for themselves,” Price says. “For our planning purposes, we’re anticipating that it’s going to be the third or fourth quarter of next year before business begins picking up again.” Michelle says the company is known for keeping its equipment up to date. During the wind-farm-building boom, the company began selling off some smaller, older truck cranes and investing more in larger cranes. With a windfarm building drop-off, the larger cranes remain useful for power-industry construction. “You can always use a larger crane as a smaller crane if needed,” Price adds. “We could see the economy beginning to slide at the end of 2007, so we started to strategically sell off assets and reduce our costs. In retrospect, it was a good move.” Amid the red-tape jungle of the Beltway, Price says that W. O. Grubb is responsive to rapidly changing regulations and certification requirements on its project sites. “We maintain an operation that can quickly respond to a customer’s needs,” Price says. “We need to constantly stay out in front of the ever-changing regulatory requirements so
speciality products
We need to constantly stay out in front of the ever-changing regulatory requirements so that we can help our clients to be successful on any of their projects. —Jim Price, Vice President of Operations
that we can help our clients to be successful on any of their projects.” W. O. Grubb’s edge is not only its adaptability, Price continues, but its customer service. “W.O. Grubb has always been a customer-service-driven company; that’s the company’s culture and philosophy,” he says. “I believe that’s the primary reason many of Grubb’s customers have been loyal to Grubb over the years. We sell efficient service and our customers depend on Grubb to help them to meet their budget and schedule project goals.” EIQ
ATLANTIC CAPITAL COMPANIES INC. CRANE, HEAVY EQUIPMENT & FINANCE SPECIALIST
ATLANTIC CAPITAL COMPANIES INC. CRANE ,H EAVY EQUIPMENT CRANES A RE O UR S PECIALTY & FINANCE SPECIALIST
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MW’s 500 Series is one of four first-class oil rigs used in the field.
MW Industries, inc. Providing custom-built, American Petroleum Institute-certified rigs for quick repairs in extreme conditions by erica archer
freezing weather, late-night calls, oil money on the line—there’s a lot riding on each of MW Industries’s oil service rigs. The North Dakota firm builds the rigs to meet customers’ needs, as well as the vagaries of local regulations. “Our motto is ‘Quality and Performance, Better Than the Rest,’” says Tom Mau, vice president of operations. “We really pride ourselves on our workmanship on our rigs.”
at a glance location: kenmare, nd employees: 40 area of specialty: custom-built oil service rigs certifications: iso-9001; api
Founders Bob Mau, Greg Wiedmer, and Tom Mau opened the company in March 2006. Bob, president, brings more than 30 years of oil industry experience, while Tom, vice president of operations, comes from an extensive background of fabrication, welding, and manufacturing oilfield equipment. In addition, Wiedmer, vice
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president of sales, has worked for more than 15 years in rig design and operations. Today, MW produces four series of service rigs—300, 400, 500, and 600 series. The entire unit is assembled at MW’s plant using Kimble Custom Chassis and CCC for chassis. Other parts such as the E-brake, clutches, and sprockets/ chains are purchased from vendors. “The bigger the series [number of the MW rig], the deeper the well you can service—that pretty much sums it up,” Tom explains. “As the series graduate up, they have bigger drawworks, more horsepower, taller masts.” The smallest unit, the 300 series guyless free rig, uses large swing-away outriggers for quick setup. The three larger rig
mw industries, inc.
series all use guylines and are designed and built for bigger jobs and deeper holes. “Setup time for the 300 series guyless free rig is minimal, as you can back it in, deploy the outriggers, and be working within a half an hour,” Tom says. “Time is very critical and costly for oil companies.” With years of experience in the industry, the founders understand the elements of a first-class oil rig. Tom lists the features that he believes are essential: “Our mast is wide for wind resistance,” he says. “We’ve got a heavyduty carrier, and of course our drawworks is heavy-duty. We’ve incorporated a lot of safety features into our rigs… They’re fast-rigging-up rigs, and they’re fast-working rigs. We’ll work with [customers] and their state to make sure that the rig we’re manufacturing for them will meet all of the requirements of their state, and [any] states that they’re going to be working in.”
We’re always dealing with the elements of really frigid weather, from 20 below [zero] to 100 degrees. So our equipment is suited to meet those needs. —Tom Mau, Vice President of Operations
By obtaining professional ISO-9001 and API certifications, MW sets itself apart from the crowd. The company has obtained the following API certifications: • 4F-9151 – Drilling and Well-Servicing Structures; • 7K-0170 – Drilling and Well-Servicing Equipment; • Q1-0506 – Specification for Quality Programs; • TS-0321 – Sector-specific Quality-Management Systems. Certification processes can be time-consuming and paperwork-intensive, Tom says, but they can also bring a company to the next level of quality. By auditing paperwork and setting quality standards, professional certifications can create regularity and ensure consistency. “[The processes] really [do] bring a lot of structure within your company, and makes you make sure you’ve got all the documentation in order and all your t’s crossed and i’s dotted, and that’s what you need to be when you’re in the manufacturing business,” Tom says. Customers buy from all over the United States and Canada, and Tom says he’s not aware of any other rig builders in the northern United States. The company’s northern location also ensures that the rigs are designed for tough weather conditions. That sets MW’s products apart from those designed by companies in warmer climates. “We’re always dealing with the elements of really frigid weather, from 20 below [zero] to 100 degrees, so our equipment is suited to meet those needs,” Tom says. “We’re trying to make the best piece of equipment for an all-around climate.” The company has turned around about 15 rigs a year; Tom Mau estimates the current production speed to be about four weeks per rig. “We’re not mass producing,” he says, “but we definitely do know that we’re kicking out a product that’s totally hands-on and thoroughly gone through a quality-control program and is superior to any other.” EIQ
MW’s rigs feature a heavy-duty carrier and a wide mast for wind resistence.
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speciality products
WILTON MANUFACTURING LLC. 1705 EAST 39TH AVENUE DENVER COLORADO 80205 P: 303-382-1041| F: 303-297-3990
gas king oil co. ltd. Community-minded business culture creates customer loyalty by erica archer
At Wilton Manufacturing we offer, State of the art fixturing • Rotating fixture, 1/16 variance over fifty feet Flat Welds • All welders 6-G certified • All size masts • Mobile drawworks ISO Certified • High quality steel • Steel certification tracking procedures
Rick Wilton
Tom Wilton
y s s t s y r a s s o l t s mppor c. CClaI c. Im IInn The official supplier to Gas King Oil Company Serving Gas Stations, Convenience Stores & Car Washes SPECIALIZING IN COMMERCIAL CLEANING PAPER PRODUCTS COMPETITIVE PRICING & NEXT DAY COMPLIMENTARY DELIVERY!* *Restrictions apply.
We proudly manufacture our own high quality work and industrial gloves. Bay 21 – 1410-40th Avenue NE, Calgary, AB T2E 6L1 Phone: 403-291-6661 | sales@classyimports.com
gas-station chain gas king oil co. ltd. in Alberta, Canada, doesn’t fight in the corner-to-corner price war. But that doesn’t mean that the company lacks competition. “Competition is pretty fierce,” says president Brent Morris. But Gas King sets itself apart with a trio of weapons—advertising, loyalty programs, and a history of community giving. And with the company’s market niche being community involvement, Gas King lives up to its motto: Fueling the Needs of Our Community. In Gas King’s local market, gas prices within one urban area are usually static, according to Morris. Price wars do exist, but on a smaller scale; location is key, as is brand image. To build the company’s brand, Gas King has print and radio ad presence—including its own Gas King radio jingle. “We’re definitely the largest independent south of Calgary,” Morris says. “We’re not really even on the major [companies’] radar. We’re not a threat because we’re not that big.” Morris opened the Gas King chain in 1985 with his father, Don Morris. The chain built on Don Morris’ early holdings in the retail gas industry. In the early ’90s, the Morrises began adding convenience stores and car washes to their offerings. Don Morris passed away in 1992, leaving the business to his family; in 2000, Brent Morris took the helm. There are a total of six locations—two of the stations are full-service, two are self-service, and two are both. Most of the locations are fairly urban: Lethbridge’s population is 85,000, and Medicine Hat’s is 60,000. The Picture Butte station, though, is located in a smaller town. During oil booms, staffing can be a problem, but the economic downturn and oil’s slightly lower prices have been a message from classy imports Mohamed Jessa, president of Classy Imports, Inc. in Calgary, would like to take this opportunity to thank all Gas King owners for their patronage. We have competitive pricing on all our products. We service gas stations, car washes, and convenience shops. Do not forget to call us for all your shop supplies . 403-291-6661, email-sales@classyimports.com
gas king oil co. ltd.
speciality products
We don’t get a lot of tourists, but we do get a lot of local business and they see that we donate to various organizations. —Brent Morris, President
for anything that Gas King sells. helpful in that area. “We couldn’t keep them because the oil patch was paying them so much,” Morris says. “But this But Gas King is perhaps best known for its charity and year it’s been easier. The oil patch has slowed down.” community support; however, the largest piece of Gas One advantage of the gas station business is constant deKing’s image comes from the company’s donations to mand: Morris says that even during the highest oil prices, local charities and causes. The company has given merGas King saw only the tiniest dip in sales. When gas rose above CND $1.40 per liter, he saw a “tiny bit” of a drop. “If chandise and gift certificates to more than 50 organizations during the past year. Events and causes as various gas prices go up, it maybe drops a little bit, but business is as Operation Red Nose, Lethbridge Regional Hospipretty steady for the most part,” he says. tal’s Christmas Tree Festival, and Lethbridge College Spaghetti Western have all been beneficiaries. Even the Gas King picks up its fuel from Alberta’s three major relocal summer fair and rodeo has an entertainment stage fineries. Independent gas stations negotiate the purchase bearing the name Gas King Stage. of gas from major oil companies, which produce more gasoline than can be sold through their own network. Independent stations buy up their excess in transactions that “We don’t get a lot of tourists, but we do get a lot of local business,” Morris says, “and they see that we donate to varare profitable for both sides. ious organizations, including the Lethbridge Bulls baseball team and the Lethbridge Hurricanes hockey club, as well To bolster repeat business, Gas King recently added as the air show that comes to town.” Community-giving a customer-loyalty program. Administered by Idahobased KickBack Loyalty Points, the program lets custom- efforts like these have helped Gas King become successful despite the competitive nature of the industry. EIQ ers earn points with each purchase that can be redeemed
energy international quarterly may/june 2010
at a glance location: lethbridge, ab employees: 100 area of specialty: independent local gas-station chain
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speciality products
beltana transport llc Memphis-based company hits its stride in transporting oversize freight across the country by cristina adams
few stories are as moving as those about the pursuit—and achievement—of the great American dream. That’s why the story of Andrew Oberle’s success, and the success of his company, Beltana Transport, is such an insiration. The Queensland, Australia, native first came to the United States in 1998, with the goal of driving trucks, earning a few dollars, and seeing various sights around the country at the same time. It turned out to be one of those defining experiences. Instead of touring and then heading home, Oberle decided to stay in the United States. So he put his affairs in order, packed his bags, and moved permanently in 2000. Later that year, he purchased his first truck with money he’d earned driving for another company. His goal was to start his own business, but the time had to be right. “He wanted to work for himself, but it had to be the right opportunity,” says Woodie Hood, Beltana’s operations manager, who joined the Beltana team in 2007. “It had to be a springboard for growth.” Oberle didn’t have to wait long. By 2001, he had his first customer, a DVD-printing and -distribution warehouse, and was in business. Soon there was enough work to require two trucks, and in 2003, the company was hauling medical supplies for a new customer on a dedicated run from Tennessee to Indiana to Pennsylvania. Then came another growth spurt and the purchase of six more trucks, and in 2004, Oberle opted to make Beltana a limited liability company. From 2004 to 2007, Beltana’s fleet expanded to include 14 trucks and 30 trailers; and in 2006, the company began moving oversized freight, such as wind-turbine blades and towers, for wind-power customers like GE Wind. Since then, it has seen growth on a fast track. These days, Beltana is a diversified, family-owned business that can take on pretty much any hauling job. With a home base in Memphis, the company covers virtually every aspect of transportation, except intermodal, moving freight throughout the lower 48 states in a variety of vehicles, from vans and flatbeds to double-drop RGN (removable goose neck) and eight-axle trailers. Hauling oversize freight has become an increasingly important—and profitable—aspect of the business; the company moves large equipment for a range of industries, including farming, aerospace, railroad, and wind energy.
at a glance location: memphis, tn employees: 22 area of specialty: transportation and logistics for oversized freight 2009 revenue: $3.25 million
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energy international quarterly may/june 2010
One of Beltana’s most recent projects was hauling a Boeing 727 from North Carolina to Massachusettes for the filming of a new Hollywood film.
HEAVY HAUL | FLATBED TRAILERS OVERSIZED | OVERWEIGHT TRUCKING
TRANSPORTATION MANAGEMENT GROUP LLC.
• “Since we began hauling oversized freight in 2006, we have made it our main focus, and right now we are concentrating on expanding our oversize operation,” Hood says. “It is constantly providing new challenges that most carriers are not able to meet.” In addition to moving freight, Beltana acts as a middleman, offering storage services to some of its customers and then shipping it on to third parties as needed. As it happens, a few of those clients are international, mostly from Australia and New Zealand; they purchase equipment in the United States and then contract Beltana to pick it up and store it. Once there is enough equipment to fill a 40-foot shipping container, Beltana employees load the container and arrange for dock-to-dock transportation, which includes clearing customs—no small feat. And companies looking for freight brokerage services need look no further than Beltana Logistics, LLC. Formed in 2008, this subsidiary provides freight brokerage, storage, and distribution services for customers. And they’ve managed to keep it all in the family—it’s owned and run by the founder’s wife, Janice Oberle. With a full-time office staff of four, a fleet of 25 trucks and 45 trailers, and 17 drivers, there are very few jobs Beltana can’t handle. And even though the recession has affected the transportation industry, along with everyone else, the company is weathering the storm. “We hope to see a change in the freight rates, as well as the amount of freight being shipped,” Hood says. “The old supply-and-demand standard never fails. There are more trucks out there right now than there is freight to be delivered.” While the recession may temporarily slow Beltana’s explosive growth, it certainly won’t stop it. Even in these slow economic times, the company enjoys healthy returns. In 2008, for example, gross revenue came in at $2.4 million; projected revenue for 2009 is $3.25 million. How does Beltana account for this increase, when so many businesses around the country are tightening their belts, slashing their rates, and handing out pink slips? In a phrase: quality of service. “Our ability to provide quality of service, especially in last-minute pinches, sets us apart from our competitors,” Hood points out. “When it’s 5:00 p.m. or midnight, and most companies are closed or booked, we can get the job done.” EIQ
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Multi Axle RGN / Lowboy Services Flatbed and Step / Single Drop Style Trailers Bunk and Dolly Systems
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LTL and Full T/L Cross Border Services DOD Qualified Overseas Exports “Green Energy” Trailers
PO Box 605 Rillito, AZ 85654 Phone: 800-741-5828 | Fax: 520-682-3229 www.heavyhaultmg.com | steve@heavyhaultmg.com
Bill Signs Trucking quickly accommodates challenges as an innovative leader in Heavy Equipment hauling throughout the U. S. BST’s field of expertise includes power plants, alternative energy, aerospace, marine, construction, mining, military and plant relocation. For BST, complicated projects requiring advanced logistics are routine. Lakeside CA
To contact, or request a quote: Call Dispatch at: 619-443-8300 CHRISE@BILLSIGNSTRUCKING.COM GARY@BILLSIGNSTRUCKING.COM TONYC@BILLSIGNSTRUCKING.COM
www.billsignstrucking.com
speciality products
TMG transports a Bradley Tank for the Department of Defense.
Transportation Management Group, LLC Arizona-based heavy-haul service provider moves forward despite setbacks by annie fischer
steve rawlins frequently received calls from people he’d never met, asking for freight references. He didn’t pay much attention—just handed off the appropriate information and went back to work. Then he recognized the situation for what it was: an opportunity to develop his own business and to more effectively utilize his skills and contacts. Rawlins decided it was time to secure his future. “I wasn’t getting any younger,” he says.
with the way freight brokers treated the heavy-haul transport industry, Rawlins elected to lead by example. “I’d seen firsthand how they took advantage of carriers and drivers—like pieces of meat to be used and abused at their whim,” he says. “I knew I could build better relations.”
He also suspected the project might be too big for one person to tackle, so Rawlins went back to Harrison and his brother, Drew. Together, in 2005, they founded Transportation Management Group, LLC (TMG), a fullShortly after receiving the papers for for his new comservice heavy-haul transportation provider, specializing in pany Steven J. Rawlins, Inc., the founder got a call from oversized and overweight freight movements through the a former employer at Sunland Construction, asking if United States, Canada, and Mexico. TMG’s reach extends Rawlins knew anyone who could handle the transport of to manufacturing, construction, and energy industries, in200 loads of natural-gas pipe from Utah to Arizona. He submitted some rates for review, and then he went about cluding pipeline and utility companies. It’s also positioned figuring out how he could actually make it happen. Raw- to enter the field of wind development, and one of the projects slated for 2010 includes the transport of windlins consulted Carl Harrison of Harrison Trucking, and together they came up with the necessary trucks, trailers, tower flanges. and drivers, should Sunland decide to proceed. The call The company recognizes that time management is the key came in; Rawlins was in business. to success in the heavy-haul industry, and it strives to implement the most advanced technological tools, including Less than a year later, that business expanded. Fed up
at a glance location: rillito, az founded: 2005 area of specialty: oversized and overweight freight movements in us, mexico, and canada 2008 sales: $7.2 million
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energy international quarterly may/june 2010
transportation management group, llc
high-speed internet and computer systems, as well as software that increases efficiency in dispatch, databases, and accounting. Additionally, TMG is dedicated to instilling a sense of personal authority for those on the payroll. “All of our employees are expected to be creative in the development of their positions,” Rawlins says. “This gives them the room they need to expand their horizons, and promotes both personal and business successes.” Of course, word of mouth doesn’t hurt. Rawlins estimates that nearly 35 percent of his business comes from referrals. For these efforts, TMG saw immediate results—the company’s success exploded. From 2005 to 2006, sales increased from $237,000 to $716,000; in 2007, those numbers climbed to $1.5 million; and 2008 brought more than 400-percent growth, with sales reaching $7.2 million. Then the economy bottomed out. “When the downturn hit, we had four offices and 18 employees,” Rawlins says. “We were projecting sales of $18 million for 2009, then lost more than $1.2 million for January alone.” The economic climate isn’t the industry’s only challenge, though. Others, according to Rawlins, include: credit terms “We see that the receivables department is extending out what used to be 30-day net pay to 45 and even 60 days,” Rawlins says. “More and more, we pay our carriers prior to receiving payment for services rendered from some of our customers.” competition TMG has a unique niche in the market, but the competition for providing logistics services is greater than in the past—meaning more rate requests, but also more concerned clients. “It’s a double-edged sword,” Rawlins explains. “Shipping costs can and will break deals.” lowered rates Many companies now operate in negative cash deficits and must lower prices to ensure cash flow. This drives down freight rates, which forces many specialized carriers to either park their equipment or close the doors entirely.
Product Specifications from TMG Transportation Management Group is a full-service heavy-haul transportation provider that specializes in oversized and overweight freight movements throughout the United States, Canada, and Mexico. Below are specifics on the types of trailers that TMG has available to industrial clients.
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TMG has now scaled back to two offices and a handful of employees, but Rawlins and his partners remain undeterred. “Our position is simply to continue to expand and acquire,” Rawlins says. “We anticipate sales in 2010 between $7 million and $12 million. The future of this company is dedicated to growth.” EIQ
Flat and step-deck trailers ➊ Spread axle flat ➋ Three-axle stretch flat ➌ Spread axle step deck ➍ Three-axle step deck ➎ Three-axle double drop ➏ Three-axle stretch double drop
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➊ ➋ ➌ ➍ ➎ ➏ ➐
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state agencies “We also notice that states continue to increase operating costs of the transportation industry, including permitting, in order to subsidize their budget shortfalls,” Rawlins says. “Yet they continue to offer less service, shortening hours or shutting down permit offices on various days.”
speciality products
➍ ➎ ➏ ➐
RGN, Lowboy trailers ➊ Eight-axle step deck configuration ➋ Eight-axle heavy step deck configuration ➌ 10-axle heavy step deck with two-axle jeep configuration ➍ 200 ton trunion axle configuration ➎ Eight-axle RGN ➏ Seven-axle RGN ➐ Eight-axle RGN
Bunk and dolly, Multi-axle RGN, Lowboy trailers ➊ 19-axle carrier configuration ➋ 11-axle configuration ➌ 12-axle configuration ➍ 12-axle configuration ➎ 13-axle configuration ➏ 13-axle configuration ➐ 12-axle configuration ➑ 13-axle configuration
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energy international quarterly may/june 2010
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speciality products
Pigeon Mountain Industries Safety-rope developer allows customers to reach new heights in tower installation and maintenance by daniel casciato
in 1976, pigeon mountain industries (pmi), a life-safety-rope and -equipment manufacturer and distributor, was just a small company founded by and comprised of three “cavers” and one rope machine. As cavers, the three were avid rope users. As a result, they needed a good rope for ascending and descending during caving adventures. But back in those days, good ropes were hard to find. Unsatisfied with their options, the trio started making their own rope for themselves and their friends. The founders maintained regular jobs to help support their caving habits and their interest in rope manufacturing. They also remained active as cavers and as rescuers, and the business grew primarily through word of mouth. Vice president Loui McCurley climbs a wind turbine using PMI’s safety rope. After an accident in New York City, during which some firefighters perished when the rope they were using parted, PMI was named in an industry white paper as an example of preferred life-safety rope. Awareness of the difference between “commodity rope” and “life-safety rope” suddenly skyrocketed, and PMI sales followed suit. Now, millions of meters of rope later, its customer base not only includes caving and rescue but utilities workers, riggers, rope access technicians, and other life-safety applications. “PMI leads the work and rescue markets in industry awareness, knowledge of product use, and familiarity with applicable standards and regulatory requirements,” says Loui McCurley, vice president of the company. “Several key PMI employees are actively engaged in the markets that PMI serves, including rescue, rope access, work at height, climbing, and caving, and these employees help to provide a bridge to those markets.” PMI maintains a close relationship with other industry professionals, and closely monitors regulatory issues through close participation with standards organizations and industry associations. PMI is also a member of several standardssetting organizations, including the American National
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Standards Institute, the American Society for Testing and Materials, the National Fire Protection Association, and the International Organization for Standardization. “We support and participate in industry organizations, including the Cordage Institute, American Society of Safety Engineers, and Mountain Rescue Association,” McCurley adds. “We even helped found the Society of Professional Rope Access Technicians in our efforts to promote safety in work at height.” Through the distribution side of its business, PMI supplies retailers and trainers with a broad range of high-angle safety equipment. The equipment it offers is used to keep workers safe while working at height, and for high-angle rescue. It also produces life-safety ropes in its factory in LaFayette, Georgia, where it also manufactures various other products. Early on, PMI partnered with SMC, a US manufacturer of high-quality carabiners, descenders, and other hardware for life-safety applications. This proved to be an excellent choice, and PMI and SMC remain partners today. PMI was also responsible for first importing the products of a French company, Petzl, into the United States.
energy international quarterly may/june 2010
at a glance location: lafayette, ga founded: 1976 employees: 38 area of specialty: life-safety-rope and -equipment manufacturing and distributing
PMI leads the work and rescue markets in industry awareness, knowledge of product use, and familiarity with applicable standards and regulatory requirements. —Loui McCurley, Vice President
This relationship lasted a dozen years or so, but in 1999, PMI and Petzl went their separate ways. This, too, proved to be a positive move for PMI, as it permitted the company to focus on the quickly developing regulatory requirements in the United States during a time when European standards were heading in a very different direction. “One of the greatest challenges in the world of life-safety equipment is the influx of low-price competition from offshore suppliers whose products do not always comply with appropriate US standards and regulatory requirements,” McCurley says. “PMI is a US manufacturer with an ISO 9001 quality-assurance program. We buy the highestquality materials from the most reliable sources, and have maintained consistency with these suppliers for many years as we continue to pursue quality as a priority. That said, we are committed to excellence in both product and service, and intend to maintain our emphasis on quality in both.” PMI also has an educational arm, Vertical Rescue Solutions (VRS), which specializes in helping customers preplan for worker rescue, and in preparing both workers and professional rescuers in simple, effective methods for post-fall rescue. VRS specializes in courses for safety and rescue solutions offered by PMI, including tower safety, personal escape, and rescue after a fall. VRS works closely with OSHA Region 8 Training Center in providing instruction for its wind-turbine-safety courses. McCurley says that the key to PMI’s long-term success is continued involvement and support of its retail dealer network. “We’ll continue to bring all our resources to bear to prioritize the development of strong, positive relationships with our dealers by providing resources, information, and tools to enable their success,” she says. “We’ll strive to accommodate the needs of both workers and rescuers at height, with sensitivity to their unique needs in terms of both safety and compliance.” EIQ
14531 E. Hwy 12 - Rogers, AR 72756
For 18 years we have represented most of the major manufacturers of equipment for work at height and technical rescue. From our centrally located facility in Northwest Arkansas, our goal is to provide customers with the most reliable equipment, professional training, and knowledgeable and personal service to assist them in meeting their specific needs.
Right Training Right Equipment Right Response! Toll Free: (888) 677-2213 Fax: (479) 925-7702 Email: equipment@ozarkrescue.com training@ozarkrescue.com
global scope
Aggreko generators provide precommissioning power as turbines near completion.
Aggreko plc Global giant offers temporary utilities and round-the-clock service by erica archer
founded in the netherlands in 1962, and now headquartered in Glasgow, Scotland, Aggreko plc is the global leader in temporary power, temperature control, and oil-free compressed air. The company, which achieved £950 million (about $1.8 billion) in revenue globally and $380 million in the North American market during 2008, operates in 31 countries on six continents. With more than $2 billion invested in its fleet, Aggreko offers rental power generators, mobile air-conditioning and heating units, oil-free air compressors, and other temperature-control equipment to industries of all kinds. Despite providing power for high-profile events like national football championships, the Olympic Games, and
major golf championships, the vast majority of the company’s business comes from industry. Aggreko often works hand-in-hand with utility companies during both planned and unplanned outages. For instance, during power shortages in the early 2000s, Aggreko provided backup power generation for New York City and temporary utility services to the California market.
at a glance headquarters: houston, tx and glasgow, uk employees: 3,500 area of specialty: temporary utilities for power and temperature control annual revenue: $1.8 billion
“Not only do we provide technical experts who work with our customers for planned outages, we also provide 24/7 response nationwide,” explains Joe Janney, Aggreko business development manager for North America. “Our business model is set up to help people who require quick deployments of power and temperature control.”
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global scope
aggreko plc
Aggreko starts [offering services] literally from the moment they’re breaking ground, and we continue working with our wind-farm clients during operation and maintenance. —Joe Janney, Business Development Manager for North America
In the nuclear industry, Aggreko Process Services (APS) deploys process engineers to work closely with nuclearplant personnel. Past applications include drywell cooling and maintaining the temperature of the spent-fuel pool during facility maintenance, as well as oil-free compressed air to generate positive air pressure in the container vessel during ILRT reviews. “APS solutions are compliant documented and include safety-critical applications,” Janney notes. In addition, Aggreko Cooling Tower Services (ACTS) offers large-scale temporary cooling towers for use in utility plants. Although these facilities are often cooled by natural
water bodies, government agencies may restrict their ability to use this water during droughts. When water levels are low, the heat dissipating from the facility can cause a larger rise in water temperature, negatively affecting aquatic life. If facilities are restricted on water use, Aggreko can provide a system that cools the plant’s discharge water and returns the cool water to the plant intake, reducing or eliminating dependency on natural water bodies. As an example of Aggreko’s large cooling capability, the company recently provided and installed a 267,000-gallon-perminute cooling-tower package in 17 days. Over the past three years, Aggreko has expanded its efforts within the wind-energy sector of the power market. The company considers itself a “life-cycle partner” for all phases of wind-farm construction, commissioning, and maintenance. “The wind industry is interesting because it really does have a life cycle to it,” Janney says. “Aggreko starts [offering services] literally from the moment it’s breaking ground, and we continue working with our windfarm clients during operation and maintenance.” During site setup, Aggreko provides power to the temporary trailers and other equipment until local utilities are able to provide power. Wind-farm groundbreaking and cement pouring usually takes place early in the year so that towers can be built and pre-commissioned during the warm seasons. Because cement requires specific temperatures to cure, Aggreko provides concrete-pad heating and electricity to cement blankets. If towers are erected during the early part of the year, cables can become brittle and snap; in these cases, Aggreko will provide heat to the towers while crews position the wires. When towers are erected in the summertime, Aggreko provides temporary air-conditioning to cool the towers for workers, which allows customers to meet OSHA requirements for safe working environments during extreme summer heat. Aggreko’s wind-farm pre-commissioning and commissioning services have both seen an explosion in interest due to changing tax regulations. During the pre-commissioning phase, Aggreko temporary power is often employed. If a wind farm does not have transmission-grid power, Aggreko provides the field generators and mobile transformers at a range of voltages to test the turbine equipment.
Aggreko generators and heaters increase the temperature within a turbine blade, creating the conditions required to internally remediate the blade.
Because European wind-power technology runs at 690 volts, American wind farms that use European equipment must use transformers and small generators, which can be provided by Aggreko, to match the voltage output. Developers often waited for utility-power connections to commission farms, but the TARP stimulus package and Production Tax Credit (PTC) have created a boom in Aggreko’s commissioning services. Under the TARP plan, developers that start farms before the end of 2010 can choose a 30-percent immediate cash payout or multiyear write-offs provided by the PTC. Once the towers have been certified as operating to specifications—even if they are not connected to a grid for distribution—the farm’s owners can apply for the TARP check or PTC credit. The financial incentives justify the hurry, Janney says. “[Consider] the interest [income] on, say, a $30 million TARP payment on a $100 million wind farm,” he says. “If you miss a day, a week, a month, there is a clear effect.You’re losing money. So it is a cost-effective operation now to have Aggreko to provide the equipment and technical services to commission their wind farm.” Aggreko has also collaborated with wind-farm developers and manufacturers to develop a way to absorb the enormous energy load of the turbines and the capacitance of turbine cabling. The solution involves load banks, but other details are proprietary. “Aggreko’s technical specialists have formulated many applications that prove we truly understand how these wind farms operate, and we’ve provided solutions to our customers that are highly successful,” Janney says. After deployment, Aggreko continues to provide services throughout the 25-year average lifespan of a wind farm. The company offers temperature- and environmental-control packages when blade or tower maintenance, repair, or remediation is required. Repairs to fiberglass blades re-
quire heat of 180 degrees Fahrenheit to cure, and Aggreko offers temperature control, plus or minus five degrees, for an eight-hour post-cure remediation; this method allows simultaneous repairs to multiple blades on a tower hub. “You need a company that can understand the customer’s process, not just drop off equipment,” Janney says. Although providing power to such a wide variety of industries is challenging, Aggreko feels that it rises above the competition in the market. “Aggreko has a strong track record with the utility industry,” Janney says, “and it will continue to provide innovative solutions to our customers’ temporary power- and temperature-control challenges.” EIQ a message from baldwin filters Baldwin Filters offers heavy-duty lube, air, fuel, coolant, hydraulic, and transmission filters. Baldwin provides a full line of filtration products for over-the-road commercial vehicles, off-road construction, mining, and logging equipment, as well as industrial, agricultural, automotive, and marine applications. Baldwin Filters’ application coverage is strengthened by the ability to consistently manufacture filters designed to meet or exceed the quality, performance, and supply requirements of original equipment and aftermarket customers. a message from guard dog cable protectors ™ by checkers industrial Extra-heavy-duty Guard Dog Cable Protectors work perfectly with Aggreko Power Generators to protect valuable electrical cables from damage while providing a method of safe crossing for vehicle and pedestrian traffic. Hinged lid allows easy access to cables. Protectors fit multiple cable sizes and are easy to set up, disassemble, and store. www.cableprotector.com
Financial Highlights
The following shows Aggreko’s revenue growth over the past five years. (In millions of dollars) 581 Full year Half year 332
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195 103 2005
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2006
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The fo month numbe served Elder S 8,000
energy international quarterly may/june 2010
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4,000
global scope
RUD Chain, Inc. Iowa manufacturer makes great strides in the wind-power industry by adolfo pesquera
rud chain, inc., a north american distributor of lifting and lashing hardware, could claim to be at the forefront of heavy lifting when alternative-energy advocates look around for allies to promote non-carbon solutions. A subsidiary of Germany-based RUD Ketten, which was founded in 1875, RUD Chain is synonymous with high-quality steel chains for hoisting and securing, tire protection, and snow and off-road applications. Thriving for 30 years, it now showcases 500 worldwide patents.
at a glance location: hiawatha, ia employees: 31 area of specialty: rings, chains, and other heavy-duty rigging gear
The Flaribo comes with 100% crack-detected bolts and nuts with special corrosion protection.
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energy international quarterly may/june 2010
Greg Luerkens, managing director of operations in North America, relocated the company two and a half years ago from Cedar Rapids, Iowa, to nearby Hiawatha. The new facility houses hundreds of specialty items in the RUD product line for distributors across the United States, Canada, and Mexico. And while wind-energy applications were not RUDâ&#x20AC;&#x2122;s forte when it began competing in the United States against domestic rigging and lifting-product producers, it certainly has become something they pursue. â&#x20AC;&#x153;Wind-related sales are not a major part of a business, but
rud chain, inc.
that segment is growing, and finding new markets plays into our business strategy” Luerkens says. RUD Chain’s location could have a factor in that. Iowa is emerging as a major center for developing wind-power technologies. According to the Iowa Wind Energy Association, there are a number of crane companies specializing in wind-tower erection, along with 47 wind farms located in the state that operate more than 1,100 wind turbines. All this activity is good news for companies like RUD. RUD sells its product through a few select distributors, who then sell to buyers that put the products to use in any number of industries. “The total penetration that RUD Chain has had into the wind-power market is impossible to estimate,” Luerkens says. But Randy Rule, branch manager for Williams Fasteners & Supply (one of RUD’s distributors) in Cedar Rapids, can measure the company’s impact. “We’ve been dealing with RUD Chain for three years now,” Rule says. “We’re up to $6.5 million annually in wind sales now.” One reason for this could be RUD’s exceptional products. High-quality load rings—the primary RUD product found in the wind-energy industry—are relied upon to lift or secure heavy equipment of all kinds. They have three uses in the wind-power industry: lifting heavy components during manufacturing; lashing heavy components for transport; and lifting and stabilizing heavy components during construction. To Luerkens, RUD has distinguished itself from US competitors through its dedication to testing and documenting the durability and safety of its products. “Our products all have verifiable load ratings,” he says. “A lot of companies say that, but they don’t have the engineering reports to back it up.” Also distinguishing the company is its safe and proficient handling of its 20-ton wind towers. “Many truckers prefer RUD Chain gear for lashing cargo, because if one of the drivers is pulled over by law-enforcement for routine inspections, they do not have to worry about any issues with their lashing products,” Rule says. “This is because RUD products meet and exceed the requirements. Once the officer sees they are using RUD, they don’t even bother them.” Luerkens emphasizes that “safety is critical when handling the wind towers weighing 20 tons. And they are getting bigger,” he says. “The industry has been around awhile, but at the same time it is evolving. The bigger the tower is, the more productive. So there’s a real drive to make these towers bigger. Where that will end, I don’t know.” And lifting the loads is no easy task, either. “It’s not just a matter of latching on the chains and hoisting,” Luerkens continues. “Consideration has to be given to the angle of lift—the number of points from which you are lifting.”
global scope
The company also benefits from its parent company’s experience in the German wind-energy industry. RUD is working with the German American Chamber of Commerce, and is pursuing a strategy of developing relationships with gearbox- and turbine-component manufacturers, steel fabricators, tower transporters, safety engineers, erectors, and tower manufacturers. As a quickly emerging energy industry, wind power has a long way to go toward maturity. Consequently, many of RUD’s distributors are only beginning to look at their wind-power-compatible products to open new markets. F.D. Lake Machinery Co. in Grand Rapids, Michigan, is another RUD distributor. Mike Posey, its president and general manager, says that for decades its customers have been tool and die shops supplying components to the automotive industry. And with the auto industry’s decline, Posey is looking for new markets. “We are trying to develop additional markets, wind power being one of them; RUD has got some interesting products,” he says. “As we’ve gotten more involved in their full line, it has been beneficial in opening some doors.” And as RUD continues to develop and expand its wind-power services worldwide, it seems only natural that more and more distributors will feel the same way. EIQ
a special message from nis NIS has been distributing RUD products for more than 15 years and is proud to include RUD’s line of lashing points in “Best Practices forWind Farm Construction; Focus Rigging.” As NIS becomes a market leader in supplying rigging equipment to the wind-farm construction industry, RUD’s years of experience in the European wind industry will continue to provide a global perspective and technical advantage. For more information call (248) 5881828, e-mail nis@nischain.com, or visit www.nischain.com.
National Industrial Supply Company Best Practices for Wind Farm Construction; Focus Rigging
NIS has a full line of rigging equipment in stock for installation of wind turbines, including; lashing points, shackles, lifting lugs, wire rope slings, roller blocks, spreader beams, alloy chain slings, high performance round slings (less than 1% stretch under load), tag line cord, fall protection equipment and rescue equipment.
www.nischain.com | 248-588-1828 ext: 1028
turnkey services
An ATP employee services an Engel Machine using ATP’s 25000 digital torque wrench, which has a final torque of 2,200 ft./lbs.
Advanced Torque Products, llc Veteran-owned manufacturer finds success in the military marketplace by cristina adams
“Basically, if something needs to be put together, no when george castle founded castle techmatter how large or small the application, one of our nologies, there was no doubt he was aiming for success. But he couldn’t have predicted that his company’s products wrenches can do the job quickly, easily, and accurately,” says Dan Castle, ATP’s manager of sales and marketing would one day become mainstays at US military bases and son of the founder. around the world. Or that industry giants like Pratt & Whitney, Lockheed Martin, and Sikorsky Aircraft would ATP designs and manufactures a unique line of torque rank among his best customers. In little more than 20 years, the company, now known as Advanced Torque Prod- wrenches, with capacities ranging from 10 inch-pounds to 40,000 foot-pounds—and everything in between. That ucts (ATP), has grown from one patented product—a hyincludes very small wrenches, known as click-outs, as well draulic torque wrench—to become a leader in the design as large-scale complex wrenches, or torque multipliers, and manufacture of torque wrenches, calibration systems, used to tighten rotor nuts on helicopters. But while many and torque-measuring devices.
at a glance location: kensington, ct employees: 7 area of specialty: design and manufacture of small- and largescale torque wrenches,
58
energy international quarterly may/june 2010
companies produce torque wrenches and hydraulic torque systems, ATP’s products are set apart from the competition thanks to its emphasis on weight and accuracy. On average, ATP’s wrenches are about two-thirds lighter than, and twice as accurate as, the competition. Because the company’s wrenches employ a Wheatstone Bridge and are direct drive, using what’s called a sun-gear approach, they retain their accuracy in extreme temperatures, both hot and cold. Moreover, digital controls provide accuracy and repeatability that is virtually second to none. Thanks to the latest technologies, the complete product line has software-interfacing capabilities and is also interchangeable with a variety of tooling, making it the most adaptable product out there. And that makes ATP’s customers happy, which, as Castle points out, is really the bottom line. “We continuously serve our customers by developing concepts and products to solve their problems,” says Castle, who joined the family business in 2008. It also means that while wrenches are the company’s bread and butter, ATP also provides a complete line of precisioncalibration systems and torque-measuring devices. These verify the accuracy of a torque wrench, which is critical as they need to be calibrated on a regular basis. ATP, for example, requires that its wrenches be calibrated once a year.
Get
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Better Quality Faster Turnaround Better Pricing Design & Engineering • Machining (CNC, Wire EDM) Tooling • Assembly • Packaging • Inspection Electro-mechanical Assembly Class 10,000 Clean Room • Documentation Warehousing • JIT • Shipping Video Conferencing • Manufacturing Cells Great People • Great Ideas
ISO 13485:2003 Manufacturing Quality to FDA Guidelines (21 CFR820)
In addition, ATP designs and manufactures products to suit a customer’s specific needs, whether it’s a custom fit or a retrofit. That can mean fabricating metal or plastic parts for miscellaneous applications, or parts that can refit the company’s own wrenches for any application. According to Castle, many of the torque applications that ATP services are unique; as a result, the company develops adaptive tooling to suit specific applications, often at a customer’s request. “To date, there hasn’t been an application that we haven’t been able to adapt our wrenches to,” Castle says. “We pride ourselves on a quick response time to our customers’ needs, and we go out of our way to help them with any problem they might have.”
a message from ccm CMM congratulates ATP in its success.When it comes to helping ATP meet the deadlines for delivery, it turns to CMM for machining and CNC. CMM is a medical quality contract manufacturer that produces parts and components in accordance with strict quality system requirements. From general assemble to Class 10,000 Clean Room assembly, packaging, inspection, and testing capabilities, as well as warehousing, CMM is equipped to handle all of your needs.The end result is that CMM customers receive the highest-quality products, manufactured in a quality-driven environment.
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ATP1200 with the tooling provided for every wrench.
But a coveted spot in the US Army’s toolbox isn’t the only thing ATP has to boast about. Not only are its torque products lighter and more accurate than your average wrench, they’re also better for the environment because they aren’t hydraulic. Most wrench manufacturers sell hydraulic wrenches, which are powered by oil, and their systems require tubes and pumps to run properly. By contrast, Castle points out, ATP’s wrenches are all mechanical multipliers that don’t require any oil, and their digital controls run on rechargeable batteries. With that kind of flexibility, it’s no surprise that ATP’s Impressive and steady growth amid the global economic biggest market is the aerospace industry and, within downturn is another feather in ATP’s cap. In 2007 and that, the US Army. In 2005, the Army discovered that 2008, the company grew at an annual rate of 20–25 perATP’s wrenches addressed some safety issues in its torqucent, and management predicts similar growth in 2009. ing systems; it was the beginning of a beautiful business friendship. Since then, three ATP wrenches and one engine “We are constantly refining our processes and procedures, and looking to stay ahead of the competition,” Castle says, kit have received a National Stock Number, a number asexplaining ATP’s continued success. “And we insist on signed by the federal government to every piece of equipgoing the extra mile to achieve total customer satisfaction ment and material that it uses or buys—and one more and customer success.” EIQ wrench is awaiting final approval.
Hand-Held Wrenches Digitally Controlled Multipliers Calibration Needs Custom Tooling & Fixtures
the ultimate in precision torque devices Combat Ready! No Bleed-Off! Just Torque and Go! Advanced Torque Products is a Veteran Owned Company that satisfies your large and small torque needs with a wide range of precision torque wrenches including Click-Out and Clutch-Out Wrenches, Socket Wrenches, Rotary Load Cells and Digitally Controlled Multipliers. Our dedication to manufacturing accurate, lightweight torque systems for the aerospace, marine, land turbine, industrial, automotive and commercial sectors has made our company the premium name in torque equipment. We welcome the opportunity to discuss all of your torque needs.
ADVANCED TORQUE PRODUCTS, LLC A Veteran Owned Company
www.advancedtorque.com | sales@advancedtorque.com | 860.828.1523
turnkey services
TankTek Environmental Services Ltd. Ontario-based environmental-service provider adapts to its surroundings by annie fischer
according to thomas burt, president and CEO of Ontario-based TankTek Environmental Services Ltd., environmental engineering is increasingly recognized as a value-added service rather than a regulatory burden. This market shift opens the gates for a surge of enterprising service providers; this surge in turn calls for distinction among current providers’ approaches. For TankTek, though, the distinction is already established: a simple, effective combination of big-business professionalism and small-business client care. Founded by Burt in 1999, TankTek initially focused on precision leak testing for underground storage tanks (USTs)—any tank located all or partially underground, designed to store gasoline, petroleum products, or chemical solutions—but widened its scope soon thereafter. Ten years later, TankTek employs five full-time technical and field-staff employees, and Burt puts gross revenue over the past two years between $750,000 and $850,000. Currently, the company offers the following suite of services throughout the greater Toronto and Ontario areas: environmental site assessments: TankTek handles Phases I, II, III, and IV of regulated site assessments, to both identify and remediate actual and potential sources of soil and water contamination, in the most cost-effective manner possible. “The remediation methods we implement can result in significant savings for our clients,” says Burt, who specifically points to in-situ remediation, a less disruptive method that seeks to treat contamination without excavating the soil. precision leak detection: The need for early leak detection in USTs and the lines connected to them is crucial in minimizing environmental impact and clean-up costs; left unchecked, the volume of leaked product and the subsequent expenses both escalate rapidly. TankTek’s testing operations include the application of a slight vacuum to the UST, which is monitored in three different ways for maximum sensitivity. “We’ve witnessed an increasing number of clients addressing environmental concerns as they are discovered— and not postponing the inevitable,” Burt explains.
then manages and monitors the repair or removal of the UST (and associated piping) to ensure proper handling and disposal. The company also manages the removal of aboveground storage tanks and abandoned USTs. In the past, tank removals and remediation projects accounted for a significant portion of revenue, but since many single-wall steel tanks have been upgraded, this area is slowing. Instead, TankTek is redirecting its revenue efforts back toward precision leak detection—the need for which will likely increase due to recent legislation that requires more frequent testing. This diversification is a strength Burt wants potential clients to recognize. “Although we’ve been in business for ten years, we still find it challenging to make our peers and potential clients aware of all of our services,” he explains. While TankTek doesn’t typically compete for projects with larger organizations, marketing its array of services to corporations for subcontracting work is more difficult, as those companies are often used to dealing with bigger names.
at a glance location: pickering, on founded: 1999 employees: 5 area of specialty: environmental site assessments, precision leak detection, and storage-tank removals
TankTek, though, considers its size as one of its greatest assets. It allows the company to maintain a sharp focus on customer service, providing detailed proposals and constant communication through all phases of the project. “Whenever possible, we offer various options to our clients and provide the information they require to make the optimum choice,” Burt says. “We strive to deliver all test certificates or reports on time, and our clients are immediately updat-
Tanktek removes a 3,500-gallon UST from a former gas station in Ontario.
storage tank removals: If a leak is detected, TankTek removes the remaining product as soon as possible,
energy international quarterly may/june 2010
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178 Pennsylvania Ave. Unit 4 Concord, ON L4K 4B1 Tel: (905) 482-2149 Fax: (416) 913-1610 www.cleanearthltd.com
ed with any foreseen delays.” The commitment pays off— Burt says the majority of TankTek’s projects come through referrals from past clients or subcontracting peers. It also lends itself to a close-knit work environment, and staff members frequently meet up before or after work to play squash or work out. Flexibility of roles and significant training opportunities are also considerable benefits for the company’s employees, and Burt says they are encouraged to assume a level of responsibility with which they are comfortable. Furthermore, the company’s size has proven advantageous amid the economic downturn. Whereas large firms with large overhead have laid off employees or instituted hiring freezes, TankTek has expanded staff numbers, as well as education and training. The company experienced a slight slowdown in business, with some clients postponing projects until conditions improve, but Burt expects that TankTek will be in an even stronger position than before when the economy picks up.
Solutions for deep in situ and ex situ hydrocarbon bioremediation. Emulsification and cytokinetic peptide technology sustains an aerobic process without chemical release.
“We anticipate taking on larger projects, as well as continuing to build great working relations with other consultants and contractors,” Burt says. “Maintaining our level of customer service and reputation, we’ll focus on increasing our share of the market.” EIQ
“No job is too small or too big, Clarkway is the only way!”
11411 Clarkway Drive E Brampton, ON L6P 0W1
We at Clarkway Construction specialize
P. 905.794.0168 www.clarkwayconstruction.ca
primarily for commercial and industrial
in environmental cleanup and excavation clients. We have done many services across Ontario including demolition,
At Clarkway Construction, we are available at anytime for our clients and their needs. Because of the importance and nature of the business, we are on call 24 hours a day and have an emergency response team when a job needs to be done right away.
installation of petroleum tanks for service stations, construction of service stations from scratch, cleanup of hazardous materials from carwashes, and have done environmental cleanup work for several municipalities and townships across the province.
turnkey services
Mechanical Energy Systems Solar-system installers keep an eye on the future of the green-collar workforce by erica archer
Specializing in high-efficiency energy solutions for retrofit and new-construction heating and lighting needs, Mechanical Energy Systems (MES) is not only the headquarters for the distribution of solar-energy systems but it is also educating and training the next wave of green-collar specialists. Woman-owned and with more than 7,000 installations under its belt, MES is indeed an innovative and forward-thinking company. The office building is an active solar-demonstration center. Everything MES promotes is used daily, proving that the practical application of solar energy works reliably in Michigan. Thirty years ago, mass exodus from the solar industry occurred due to the OPEC dropping oil prices and the removal of federal rebates, forcing virtually every solar company in Michigan to close. Donna Napolitano, currently president of MES, and husband Joe, vice president of a Fortune 500 solar company and mechanical contractor, bought customer lists from defunct companies. Servicing those orphaned solar installations, they grew their business by providing solid, reliable, and quality service. Today, MES is moving toward building a large distribution and dealership network and expanding commercial applications through its eco1Energy Distributors affiliation. Currently, Michigan imports almost all of its energy sources, Napolitano notes. The state imports 80 percent of its natural gas, 100 percent of its coal, and 97 percent of its petroleum, according to a September 2008 report by the Michigan Department of Energy, Labor, and Economic Growth. Heating water is the second-highest residential cost, and solar hot water alone can reduce fossil-fuel water-heating costs by 75 percent annually in Michigan. Heating a pool with solar energy in the summer is a no-brainer, removing 100 percent of seasonal heating costs for 15–25 years. Natural daylighting is the mode of office and showroom illumination. Natural daylighting has long been documented as essential to an improved work environment, performance, and employee health. MES is heated by solar space heating, supplying heated fresh-air exchange while the bathrooms have solar hot water. All these aid in providing a healthy-air work environment, free from tight-envelope syndrome and recycled impure air. Office equipment is backed by a solar-electric system. “We offer this as a demonstration area for customers to come in and see, touch, and feel what solar can do for them and see how it works in Michigan,” says Donna.
“2009 has been an excellent year for MES, and 2010 is even more promising,” she says. The local electric utility, DTE Energy, is offering rebates and energy rate deals on solarelectric installation. Starting in March 2010, the state will be offering an efficiency rebate on solar water heaters. The state incentives, plus the federal 30-percent tax credit, make solar energy hard to resist. Solar hot water has not had the attention it deserves and is a great application, even in Michigan. MDOT and MES will be working on a feasibility study for solar hot-water systems for all rest areas throughout Michigan. Energy Works Michigan, a nonprofit organization promoting alternative energy and education, recently chose MES as the general contractor to
at a glance location: canton, mi employees: 11 area of specialty: retailers, installers, trainers, and distributors of solar-energy systems
A Complete Energy Station The EnerWorks Spectrum Pre-Heat system, provided by Mechanical Energy Systems, uses solar energy to become the primary source of hot water in residential and small commercial applications. This system allows customers to gain nearly 40% of their home heating and hot water needs via solar energy as an alternative to systems that use Hot water to your home expensive pollution-creating fossil fuels.
Solar + Electric Solar Tank Solar heated water with auxiliary electric heating ensures hot water is always available Energy station • Digital temperature control and monitor • High-efficiency brazed-plate heat exchanger • Patented anti-fouling protection
HeatSafe Solar Collectors
Cold water supply
turnkey services
mechanical energy systems
Chelsea, MI
2.30
kW
10.35
kW
Chelsea, MI
2.30
kW
Oshkosh, WI
3.52
kW
34.50
kW
Jeffersonville, OH
6.78
kW
Indianlo, IA
8.43
kW
Pigeon Falls, MI
Dalton, PA
Hastings, MI
11.3
12.34
kW
Springfield, IL
6.78
kW
Woodville, WI
4.00
kW
Rosemount, MN
8.28
kW
Ames, IA
7.43
kW
Green Bay, WI
5.64
kW
Jonesville, MI
4.32
kW
Ely, MN
WEST
44.84°N
14.32
kW
Millstone, NJ
9.93
kW
Evansville, WI
20.17
kW
Rochester, MN
2.78
kW
Bangor, PA
3.76
kW
Canton, MI
8.28
kW
EAST
PV
synerg
lls, WI River Fa com d s o l a r.
our thanks to Mechanical Energy Systems for choosing Synergized Solar to supply their solar electric (PV) product needs
ize
0.4757
1.877.60
8
23004_14_syn_EPS_v2.indd 1
11/16/09 8:45:16 AM
A system consisting of 36 photovoltaic panels can produce up to 8kW, fully powering a standard residential home like this one in Garden City, MI.
install working photovoltaic and light wind-energy systems at 10 Southeast Michigan schools. Because of MES’ dedication to alternative energy, it was selected to install a solarelectric system on the governor’s residency. “Education is the key,” Donna says. 75 percent of MES’ customers are repeat or referrals from past clients. In addition, by participating in the American Solar Energy Society’s annual National Solar Tour, MES demonstrates technologies for consumers and holds in-house seminars like “Finding Your Green Path,” which married green efficiency advocacy with budget consciousness. The company’s goal is to pass the years of experience forward and assist in creating green jobs. A new generation of companies whose growth will be based on proven and reliable energy-efficient products, and fully supported by the experience of eco1Energy Distributors, will bring a valuable resource of solar-energy jobs to Michigan and surrounding states. “Michigan needs to keep its revenue here to better support our economy, industry, and residence,” Donna says. “Solar is that viable option.” EIQ
turnkey services
HGA’s circular stacker is a proven method for fully automated storage and reclaim of biomass fuel.
Hunt, Guillot & Associates, LLC Louisina-based engineering firm adapts to the current market environment by cristina adams
there aren’t many companies that keep a staff of multidisciplined engineers on the permanent payroll waiting for that next big capital project. For one thing, it’s expensive; for another, it would take time and plenty of legwork to hunt down engineers with the kind of knowledge and hands-on experience that, say, a biomasspower company might require. That’s where Hunt, Guillot & Associates, LLC (HGA) comes in.
studies, and natural-gas storage facilities,” says Hunt, who joined his father at HGA in 2008, after working for four years in marketing and five years with other engineering firms. It looks as though the natural-gas sector will likely remain a dominant source of revenue for the company, due to a recent natural-gas find near HGA’s headquarters in Ruston, Louisiana. On the flip side, however, the company doesn’t want to be pigeonholed or to rely too heavily on one market. “We don’t want our revenue to become dependent on one industry,” Hunt says. “So we’re continuing our business development efforts in all industries, but adjusted according to the current market environment.”
Founded in 1997 by Trotter Hunt and Jay Guillot, this Louisiana-based firm offers engineering consulting and project-management services to a long list of major industries, including natural gas, pulp and paper, specialty chemicals, bioenergy, wood products, public works, and more. And with more than 100 engineers and project managers on staff, many of whom can boast more than 30 years’ experience in Thanks to the proliferation of forests in the area, HGA first made its name doing work for the wood-products and the field, HGA is clearly geared up to do business. pulp-and-paper industries. The company then developed a base of expertise that was—and is—applicable to bioFor the past few years, that business has come largely energy and biofuels. Since then, HGA’s growth has been from the natural gas, bioenergy, and specialty-chemicals sectors, according to cofounder Trotter Hunt. “The bulk exponential, as it has gained a solid foothold in myriad of our recent work has been in industrial capital projects, industries and a reputation for quality work delivered on time and on budget. such as specialty-chemical plant design, biomass power
energy international quarterly may/june 2010
at a glance headquarters: ruston, la founded: 1997 employees: 100 area of specialty: engineering consulting and projectmanagement services
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hunt guillot & associates, llc
The bulk of our recent work has been in industrial capital projects, such as specialty-chemical plant design, biomass power plants, and natural-gas storage facilities. —Trotter Hunt, Cofounder One recent project involved a study for a major utility in the Southeast, in which HGA evaluated six coal boilers at three different sites for possible conversion to wood biomass fuel. The study covered numerous elements and scenarios, from permitting implications and boiler modification to fuel receiving and handling options. Deliverables included a conceptual engineering package, which featured the client’s best options, as well as capital cost estimates and identification of potential key issues. “Our team now has proposals out to several other major utilities that are considering similar studies,” Hunt says. “These studies help them understand their options in advance of the pending federal renewable-energy legislation.”
Over the years, HGA has grown to more than 100 engineers and project managers, and its geographic reach has expanded, as well. To date, clients in more than 23 US states, Canada, Mexico, and the Middle East have tapped HGA for its services. Even so, Hunt says, working in North America remains its principal focus. Interestingly, HGA’s growth hasn’t been exclusive to industry or geography. In 2004, the company formed a new subsidiary, HGA Staffing, to provide placement services for contract or direct-hire personnel. As Hunt tells it, this business came about as a result of client requests. Their clients needed experts in this location or that one, and when the calls for help turned into a steady stream, HGA saw an opportunity—and seized it. “Most of our placements are for a specific assignment that’s technical in nature, and we have a pool of resources we can tap into,” Hunt says. “This allows our customers to have a more flexible workforce.” Looking ahead, HGA is doing well at a time when many other firms have folded. Revenue in 2009 was flat versus 2008, but projections for 2010 are vastly more optimistic, with a forecast for 20 percent growth. “We believe this is aggressive but achievable,” Hunt says. And judging from the firm’s list of accomplishments, achievement is what HGA is all about. EIQ
Services Provided: • Grassroots plant design and development • Reactor, distillation, and exchanger design • Utilities, pumping, and piping design • Intermediate storage and tank-farm design • Environmental controls and permit applications • Assist with debottlenecking and troubleshooting • Process simulation (aspen, chemcad, hysys, pro II, and more) • Six sigma/lean manufacturing • Equipment sizing and rating • System hydraulic evaluation • Utilities optimization and capacity evaluation
turnkey services
Ultragen installed a new 27,000 USGPM cooling water tower within an existing plant for Greenfield Ethanol.
Ultragen, Ltd. Consulting engineers find a niche designing pressure vessels and piping networks for the enrgy industry by daniel casciato
for steve surveyer, success has always been based on several fundamental principles that have served his company well since its founding in 1989: offering highly skilled engineering services with an eye towards low cost, client satisfaction, and speed of service. In order to fulfill such an exacting demand, his full-service engineer consulting firm, Ultragen Ltd., based in Boucherville, Québec, had to be highly selective in the hiring of its staff.
Ultragen, which services eastern Canada and the United States, functions as a full-service EPCM consulting engineering firm, with expertise in the refinery, petrochemical, and chemical industries. It offers services in all engineering disciplines: process, mechanical, piping, civil, structure, instrumentation, electric, project management, cost control, estimation, planning, and construction supervision.
at a glance location: boucherville, qc industries served refinery, petrochemical, and chemical annual sales: $14.5 million employees: 116 founded: 1989
The company has always been managed with a long-term outlook in mind, according to Surveyer. This meant that the company was more orientated towards evergreen “The management of Ultragen wished to maintain its services rather than large projects. The capability to reputation within the industry, as the leader in technology, quality, and speed of services rendered,” Surveyer says. handle large projects came with time, as the inventory “The founding partners share this common desire and goal, of evergreen clients grew and their demand of services multiplied. This allowed the hiring of sufficient staff to and base their management decisions with this in mind.”
energy international quarterly may/june 2010
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turnkey services
ultragen group ltd.
Ultragen has also established a reputation in the industry as a company that is able to deliver a project within tight schedule constraints, such as turnarounds or emergency shutdowns. —Steve Surveyer, Director & Cofounder
handle major projects. The company’s recent success has moved from being centralized around its two founding partners to its surrounding staff. The group of highly skilled and motivated engineers has established such an excellent reputation within the industry that they have often been targeted for hiring of staff to fill vacant client plant positions. Ultragen, Surveyer says, prides itself in the quality of its staff, and in the internal training provided them to enable continuous skill upgrading. “Ultragen has also established a reputation in the industry as a company that is able to deliver a project within tight schedule constraints, such as turnarounds or emergency shutdowns,” he says.
This FCCU revamp of the internals of a reactor/regenerator is one of Ultragen’s most recent projects.
While growing his company from its original staff of four to more than 100 employees and annual revenues exceeding $14 million since 1989, Surveyer says the most valuable advice that he and his partners have received was the feedback from their very own staff. “We’ve been wise enough to listen to comments, suggestions, and concerns coming from our staff of engineers, designers, and administrators,” he says. “These suggestions ranged from minor to major in nature. This remains an ongoing source of valuable feedback and advice to the managing partners.” The results of this feedback include the implementation of a company pension plan, performance bonus plan, several administrative procedures, and the purchase of advanced software in various engineering fields. Heading into a new decade, Surveyer has his eye focused on two main challenges in the long run. The first one is to keep the expertise and technical edge of its resources in
A Closer Look
Sectors of activity
The Ultragen Group functions as a full-service consulting engineering firm, with expertise in the refinery, petrochemical, and chemical industries. Below, a statistical snapshot of the company.
10% Other 15% Biofuels 20% Lubricants
Geographical distribution
25% Canada
Source: Ultragen
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The energy industry is evolving for many reasons, according to Surveyer. For example, he says, there is the materialization of new state-of-the-art technologies, emerging environmental laws, the shift in crude oil production and refining to other regions of the world, emerging technologies and markets for biofuels, waste-to-energy technologies, and the reduction of greenhouse emission. “It is evident that engineers are key players in the future of the energy industry,” he says. “Their contribution will be deemed crucial on economical, environmental, and social development.” Ultragen is eager to respond to these challenges by offering its clients strong and reliable technical services. In the long run, this means staff training, knowledge management, and the commitment of the top management. “Furthermore, we believe that it is time for Ultragen to repeat its successful model abroad,” Surveyer says. “For the last 20 years, Ultragen was able to sustain a constant growth and to establish long-term partnerships with local partners. We are convinced that in order to maintain this growth, Ultragen has no choice but to reinforce its involvement in international projects. In this light, Ultragen International was created with the mission of developing long-term partnerships and business relationships with international clients and partners.” EIQ
Revenue and Employee Growth $20,000
15% Other 55% Hydrocarbons
line with the evolving needs of the industry. The second one is to implement and maintain a structured businessdevelopment approach oriented to strategic markets around the world. “This second challenge has lead to the creation of Ultragen International, which is dedicated to international business development,” he says.
energy international quarterly may/june 2010
15,000
60% Quebec
10,000 5,000
68
86
100
121
116
2005
2006
2007
2008
2009
turnkey services
Duke Hicks Plumbing & Petroleum, Inc. Creating commercial fueling systems from the underground up by daniel casciato
at duke hicks plumbing & petroleum, inc., an emphasis is placed on quick project turnaround with ethical, fair, and safe conduct. Specifications, codes, laws, and environmental standards are always adhered to at this Chattanooga, Tennessee-based commercial plumbing and fueling-systems installation firm.
at a glance headquarters: chattanooga, tn founded: 1960 employees: 38 area of specialty: installation of of commercial plumbing and fuel systems
“We guarantee our work and pride ourselves on quality installation and service,” says Michele Webb, vice president and wife of owner Michael Webb. “We listen to our customers and to our employees for improving our products and services. We have integrated quality software and technology that allow us to readily track income and expenses on jobs and work orders.”
Complete Service Providers Duke Hicks is part of an integrated management group that includes First Choice Services and Future Era Construction. Together, the three companies provide: • Sales and service of petroleum equipment • Installation and service of commercial plumbing and fueling systems • Start-up and training • Commercial electrical installation and service • General contracting
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energy international quarterly may/june 2010
Additionally, the company has access to general contractors, electricians, parts, and technicians 24 hours a day. As a result, it has a fast response time and job turnaround. Michele says that the company values its human resources and believes in taking care of them through employee benefits and an open door policy. “Our employees make the company,” she says. “If it wasn’t for them, there’d be no company. We respect them and listen to them, and we expect of them to be conscientious and safe. There’s constant day-to-day communications and feedback with Michael and the employees, and with our primary vendors. We know that they make or break us, so we pay close attention to safety, and we try to recognize them and help them and their families as much as we can.” The company also offers
duke hicks plumbing & petroleum, inc
turnkey services
We listen to our customers and to our employees for improving our products and services. We have integrated quality software and technology that allow us to readily track income and expenses on jobs and work orders. —Michele Webb, Vice President
its employees ongoing training and safety programs that eliminate job-loss time, she adds. Duke Hicks Plumbing & Petroleum was started by its namesake, Duke Hicks, in 1960. Back then, the company was called Duke Hicks Plumbing & Heating. Michael started working for Duke in 1978, and soon the company began work in the gasoline arena. In 1990, Michael purchased the company from Hicks and changed the name to Duke Hicks Plumbing & Petroleum, Inc. The company’s areas of specialty include: • installation of commercial plumbing and fueling systems; • specialized blueprint development; • concrete; • canopies; • job-site preparation and cleanup; • environmental remediation; • remodels. Michele describes the company as a turnkey operation. “We can build a convenience store from the underground up,” she says. “Available to us are: general contracting, electrical, plumbing, service technicians, paving, and parts. We do not have a wait time if a job is evaluated by a plumber or technician and needs an electrician—we can have an electrician available as needed. Also, the company uses quality parts and installation techniques.” Michael is a leader in the industry, she adds. “He has contacts and authority in over a 2,000-mile radius. If you use us, the job will be done right and we warranty it.” Duke Hicks is part of an integrated management group that includes First Choice Services and Future Era Construction. Together, the three companies provide sales and service of petroleum equipment, including installation and service of commercial plumbing and fueling
systems, start-up and training, commercial electrical installation and service, and general contracting. “Being a distributor of many well-known product lines helps us keep costs and service times down,” Michele says. “The ability to integrate electrical contracting with our petroleum, plumbing, and service companies greatly reduces downtime and consolidates project management.” Being active in their industry and even in their own community is very important to the Webbs. The company is a member of the Petroleum Equipment Institute, a trade association whose members manufacture, distribute, and service petroleum-marketing and liquid-handling equipment. Also, Michael is on the City Board of Appeals committee in Chattanooga, and was recently selected to be on the board of development for the Chattanooga State Community College Building and Construction Institution of the Southeast. “He is one of the field liaisons helping to implement this new program,” Michele says. “Through this new program, students will be able to earn a trade degree, which can later expand into a construction-management degree through the University of Tennessee. Michael has been helping with the guidelines and with the curriculum.” In helping her husband grow the company, three key learning experiences have always stuck with Michele: provide quality products and service, be sure to use effective cost accounting, and listen to customers and employees. “We are thankful for the years of service and employment we have been able to provide,” Michele says. “We strive to keep all employees working and productive. In a down economy, it is important to bid, bid, and bid some more. We also are working on the best productivity we can achieve, and we are prayerful that we will be able to continue offering the same in the future.” EIQ
By the Numbers
1990 Year the firm was purchased by Michael Webb
3
Number of integrated companies: Duke Hicks Plumbing & Petroleum, First Choice Services, and Future Era Electrical & Construction
2
Number of offices: Headquarters in Chattanooga, TN and an office in Knoxville, TN
7
Number of states in which the company operates: Virginia, Kentucky, Tennessee, Georgia, Alabama, South Carolina, and Florida
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features
port of milwaukee Ushering wind energy into the midwest by erica archer
W
hy ship wind-farm equipment through the Port of Milwaukee? Port director Eric Reinelt can offer three reasons: location, infrastructure, and equipment. The port’s location, central to key Midwestern wind-farm sites, is a factor that no upgrades by the port’s competitors can beat.
Despite Port of Milwaukee’s geographical advantage, the competition for wind cargo is stiff in the nation’s transportation markets. Some wind-farm-component companies use ports in the Gulf of Mexico and truck the cargo up to the Midwest. Great Lakes ports like Duluth and south Chicago vie for the cargo as well. In response, the Port of Milwaukee has been taking great strides to increase its wind-farm traffic.
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The port has made numerous improvements to accommodate large loads like wind turbine blades. Betty Nowak, marketing manager, states, “In the last year and a half, there have been four considerable improvements, steps that we’ve taken for improving [our port] and attracting wind components: upgrading the infrastructure, improving interstate access, bringing in new equipment to handle [turbines] more cost effectively, and preparing more land for laydown area.” Internal infrastructure is also undergoing a series of upgrades. Two railroads serve the Port of Milwaukee, with tracks running directly up to each dock, and rail improvements are planned. The port has set aside an additional 11 acres of laydown area for large cargo, like wind-turbine blades, and is widening and reinforcing highway access ramps. “We have a half-million-dollar project this spring to improve the access ramps to our highway,” Reinelt says.
energy international quarterly may/june 2010
port of milwaukee
features
innovation fuels
Heavy hauling The Port of Milwaukee is strategically positioned for the transportation of wind-farm components for the entire Midwest. Below, turbines are directed to a developing wind farm in Northern Illinois.
T
he Port of Milwaukee is diversifying its scope of business in order to focus on multiple alternative-energy markets. Those markets, including wind energy and biodiesel, are currently broadening the port’s role as an international shipping center. The Port of Milwaukee is a great fit for the alternative-energy sector, since these industries require access to a variety of transportation methods, ideally located all in one place. The port’s strength lies in the fact that it is connected to so many different modes of transportation. The port provides alternative-energy companies, like Innovation Fuels, access to rails and barges, highways and land-leasing space. Innovation Fuels is one of the first alternativeenergy companies to embrace the port, and utilize its strategic location and facility to grow its biofuel market.
Innovation Fuels, a New York-based renewableenergy company that manufactures, markets, and disJohn Fox, CEO of tributes second-generation Innovation Fuels. biodiesel all over the world, has begun selling biodiesel directly to customers from its Midwestern renewable-fuels hub in the Port of Milwaukee terminal. The 312,000-barrel-capacity (45,000 metric tons) terminal, located on a total of ten acres, is the first in the country that is totally dedicated to the sale and distribution of renewable fuels. Originally built as Shell Oil’s Milwaukee headquarters in the 1950s, the Innovation Fuels terminal includes a 20,000-squarefoot warehouse, executive offices, and a garage.
Working with the port in order to facilitate growth in the area’s wind-turbinetransportation market, the Wisconsin Department of Transportation improved Milwaukee County permitting requirements for trucking oversized loads. “We’ve worked really closely the past year and a half—the port and the City of Milwaukee and the Department of Transportation—to allow these wind blades to get immediate access right at the port onto the interstate,” Nowak says. Although the port’s equipment can already accommodate plenty of heavy cargo, the port’s stevedore company, Federal Marine Terminals (FMT), has added reach stackers for heavy lifting. “FMT has brought in very heavy machines that’ll expedite the loading and unloading of these wind components in various places for getting them on and off the trucks or moving them around the port,” Reinelt says.
John Fox, CEO of Innovation Fuels, comments, “The commencement of selling biodiesel via our Milwaukee terminal will significantly lower the cost of our biodiesel to customers in the Great Lakes, due to lower transportation charges. It is highly advantageous for us to be marketing Milwaukee-based biodiesel to customers in Milwaukee and greater Wisconsin, as well as to Chicago and the entire Midwestern region.” Innovation Fuels’ Milwaukee terminal features existing truck- and rail-loading infrastructure with excellent highway access and is served by two Class I railways, the Union Pacific Railroad and the Canadian Pacific Railroad. In addition, the Port of Milwaukee has international shipping access via the St. Lawrence Seaway and can receive river-barge cargo via the Mississippi. The facility also has a connection to the Westshore petroleum pipeline, which will be used to bring in diesel and gasoline to the terminal for blending with renewable fuels, such as biodiesel and ethanol.
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features
port of milwaukee
“ The big economic impact is with wind components, because they’re so specialized. They generate a lot of economic activity and a lot of impact from the job creation.” —Eric Reinelt, Director From 2003 to 2007, the Port of Milwaukee’s wind-farm-component traffic rose each year. The years 2006 and 2007 broke revenue records for the Port of Milwaukee, and despite the economic downturn of 2008 and 2009, Milwaukee has taken a smaller economic hit than other ports, according to Reinelt. Typically, ports earn the bulk of their revenue through large, heavy shipments—wharfage fees are the dollar amount per ton of cargo paid by the shipper to use the port’s facilities. Since wind-farm equipment, particularly wind turbines, are large in size but weigh significantly less than traditional cargo, the Port of Milwaukee doesn’t want to attract wind-farm cargo merely for the revenue that the cargo’s tonnage generates. “There’s not a lot of tonnage in wind projects, but it’s irrelevant because of the job creation,” Reinelt explains. “The big economic impact is with wind components, because they’re so specialized. They generate a lot of economic activity and a lot of impact from the job creation. Stevedores, longshoremen, truckers—just so many people are involved.” It is estimated that some 2000 jobs depend on the activity of the port, either directly or indirectly. In addition to job creation, the port boosts the local and surrounding metro economies by reducing transportation costs for millions of tons of cargo. For example,
The port handles approximately 850,000 metric tons of coal each year by vessel and then barges the coal up river to the WE Energies coal facility in downtown Milwaukee, saving emissions of more than 120 truck loads per day that would contribute to the downtown traffic.
A closer look at the port Lake Michigan
Bulk transfer dock South Pier 2 South Pier 1
Liquid cargo pier (South Pier 5) Innovation Fuels
Passenger terminal
Dry bulk storage domes
interstate 794
US Navy
Heated warehouse
Public truck scales
Heavy lift derrick
Cement silo
KEY Liquid cargo pier and storage Grain elevator Truck route City open docks Intermodal yard Bulk handling and cargo storage Cargo terminals Future development Coal dock Train tracks
hig
hwa
US Coast Guard
Port administration building
Storage domes Municipal mooring basin Grain elevator
KK
Ri
ve
r
ay 32 highw
it would take 180 rail cars, or 692 trucks, to carry the load of just one standard cargo ship. That equates to about 200,680 fewer trucks on the road for each ship that comes through the Port of Milwaukee. Recent discussions between the Board of Harbor Commissioners, the Mayor of Wisconsin Tom Barrett, and the Wisconsin Secretary of Commerce Richard Leinenkugel led to plans to coordinate a meeting between Wisconsin and other state departments. The meeting will present the Port of Milwaukee’s businessdevelopment ideas and legislation efforts that have helped attract more businesses to the state. Since the Port of Milwaukee offers the most transportation options of any Midwestern port, including pipeline, barges, lake ships, ocean ships, two main railroads, and immediate freeway access, it offers businesses, both local and global, a way to expand their markets and export more goods from the Midwest. “Milwaukee’s strategically located for many of the best areas in the Midwest for wind,” Reinelt says, “so we have to make sure they think of us when they’re building these projects and bidding the transportation.” EIQ
RELIABILITY FMT
RELIABLE
Albany, NY Burns Harbor, IN Cleveland, OH Eastport, ME Hamilton, ON Milwaukee,WI Port Manatee, FL Tampa, FL Thorold, ON
FLEXIBLE
TRADE
is the Link
Your Link to World Trade fmtcargo.com 704.714.4644
Located just one hour north of Chicago on the southwest shore of Lake Michigan, the Port of Milwaukee offers an operational flexibility unique to the western Great Lakes and inland waterway system. Our terminals are designed for the efficient handling of steel products, containers, general cargo, dry and liquid bulk, and heavy machinery including wind turbines, heavy lifts and liquid products in our biodiesel facility and petroleum tanks. We also offer intermodal connections to all Midwest cities, making the Port of Milwaukee the economic choice for routing all types of cargo, by ship or barge.
For more information, contact:
www.milwaukee.gov/port
Eric Reinelt, Port Director 2323 S. Lincoln Memorial Drive Milwaukee, WI 53207 USA 414-286-8130
sky-high solar Melbourne-based solar-energy visionaries make headway in an effort to bring solar-tower technology to the US
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energy international quarterly may/june 2010
enviromission
features
A
By Annie Fischer fter years of a solar-powered rollercoaster ride through miles of Australian red tape, the end of the decade saw the US subsidiary of Melbournebased EnviroMission Ltd. coming ever closer to a physical incarnation of its trademark solar-tower concept—one that the company, now headquartered in Phoenix, has envisioned for nearly ten years.
EnviroMission’s solar-updraft tower combines three proven technologies: the chimney effect, the greenhouse effect, and the wind turbine. For its proposed project, a 200-megawatt tower in Arizona, as many as 2,400 acres of air (the “collector zone”) would be heated by the sun’s radiation and trapped in a greenhouse-like structure around the base of a tall chimney. Funneled skyward by the laws of physics (hot air rises), the current would create a steamy 35-mile-per-hour wind up the 2,000-foot-tall tower, driving 32 turbines. A generator would then convert that wind energy into electricity. The company pinpoints three vital components of the tower’s structure for the success of its proposed technology:
• The canopy sources radiant heat, not sunshine, which is why solar-tower technology is designed to operate in all weather. The engineering focus here is on insulation; the canopy should lose as little heat as possible. • The tower itself is the thermal engine of the plant. The updraft inside it, produced by the rising air, is essential for transforming heat into mechanical energy. Given the direct relationships among the column of air’s velocity, height, and strength, a high-capacity version should have the highest tower possible. • The turbines transform the energy from the heat and pressure of the air into mechanical energy. The turbine rotors are the only moving part of the Solar Tower, and the process is passive, requiring no outside energy input to start or maintain it.
The solar-tower concept promises a new form of clean, green energy—at a price competitive with fossil fuels.
features
enviromission
According to press materials, a single 200-megawatt power station could produce enough energy to power more than 100,000 typical American households. Water isn’t required at any stage of the generation process, which would abate approximately 528 million gallons of desert water per year. Furthermore, EnviroMission claims these developments could function for decades— without producing any carbon emissions and at a price competitive with fossil fuels. With such a cost-effective and environmentally friendly profile, why has a full-scale solar-updraft tower not been completed? Essentially, it’s a matter of cost. The initial investment in a solar-updraft-tower plant is much higher than for traditional fossil-fueled power plants. However, the long-term operating costs for solar-updraft-tower plants are considerably lower, because there are zero long-term fuel costs. “Renewables are great; sustainability is great,” CEO Roger Davey told the Phoenix Business Journal in November 2009. “But you can’t do that if it’s too expensive.” The initial investment must be recovered and interest must be paid, but the technology is undoubtedly cheaper than fossil fuels when combined with low interest rates and long amortization periods.
View from within the solar-updraft tower-prototype collector. The tower can be seen through the collector glazing in the background.
Such cost-efficient technology was tested with a small-scale pilot plant in Manzanares, Spain, for seven years between 1982 and 1989, and its 660-foot-tall tower consistently generated 50 kilowatts of green energy. According to EnviroMission, that plant not only proved the concept works, it also provided data for design modifications that would allow for greater commercial and economic benefits.
Aerial view of the solar-updraft-tower prototype in Manzanares, Spain.
Fast-forward more than ten years, to 2001, when EnviroMission began development with a search for the best possible site for the world’s first solar-tower power station. In Australia—the country has vast areas of solarradiation levels, geological stability, and low land costs— a site was selected at Buronga in the southwest corner of New South Wales, on a former wheat and cattle station known in the district as Tapio Station. Following years of disappointing setbacks in funding and legislation, the company eventually shifted its focus to the Southwest region of the United States. “EnviroMission acknowledges shareholder concern about the lead time to ‘breaking ground,’” Davey admitted in last year’s chairman’s address. He pointed to a failure of government support or incentives in Australia and asked that those issues not be confused with the company’s potential. “The speed of EnviroMission’s progress in the US reflects the quality of the Australian development model,” he added. In May 2009, the US subsidiary commenced operations, entitling EnviroMission to incentives available exclusively to national corporations. Additionally, the establishment of the Phoenix headquarters provides financial and resource efficiencies from localized business operations. Two months later, EnviroMission announced that it filed two land applications in Arizona, each for 5,500 acres that would meet the site-development requirements for a single 200-megawatt solar-tower power station. The Arizona land sites were identified as ideal for solar-tower development following due-diligence studies that took into
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energy international quarterly may/june 2010
enviromission
features
A proven technology
n
2 The air is heated by solar radiation under a translucent roof.
n
3 The energy contained in the updraft is converted into mechanical energy by pressure-staged turbines at the base of the tower and into electrical energy by conventional generators.
iatio
iatio r rad
Sola 1 Collector entry: Cool ambient air enters the collector.
4 Hot air rises up the tower. As a result, suction from the tower draws in more hot air from the collector, and cold air comes in from the outer perimeter.
Sola r rad
The solar-updraft tower combines three technologies for energy generation: the chimney effect, the greenhouse effect, and the wind turbine. Below is a breakdown of typical air flow through the system, which takes warm air from the greenhouse-like structure at its base up through the tower. The tower converts the heat flow produced by the collector into kinetic energy (convection current) and potential energy (pressure drop at the turbine), and the density difference of the air caused by the temperature rise in the collector works as a driving force. The energy contained in the updraft is then converted into mechanical energy by pressurestaged turbines at the base of the tower and into electrical energy by conventional generators.
Ground functions as natural thermal storage
“ The speed of EnviroMission’s progress in the US reflects the quality of the Australian development model.” – Roger Davey, CEO account critical criteria, including cultural, archaeological, and environmental surveys. “I’ve personally walked both sites in Arizona, and they tick all the boxes for solar tower power-station-development needs,” Davey said in press materials. “The land is flat, the weather is ideally and consistently hot, and both sites are in close proximity to transmission infrastructure.” Then, in September 2009, as part of an ongoing program to acquire renewable-energy sources, the Southern California Public Power Authority (SCPPA) approved the solar-tower developments planned for Arizona—at that time, the only solar proposal to qualify from more than 100 submissions. (The project is now one of approximately 15 contracts in various stages of approval, including multiple renewable technologies such as wind, geothermal, and biomass; additionally, SCPPA has since entered discussions with three other solar-photovoltaic projects, according to SCPPA Energy Systems Manager David Walden.) SCPPA brings together 12 municipal utilities in the Southern California region, and collectively the companies serve about two million households, repre-
senting about 4.8 million people. According to Walden, EnviroMission’s 200-megawatt tower would deliver approximately 850,000 megawatt-hours annually. SCPPA is now finalizing the contract negotiations with EnviroMission on behalf of its members. The next step is a series of resolutions that define proposed accounting structures; following these, each participating city takes the project to its respective board for approval. Once that’s done, SCPPA can move to process the contract. “There are also a sequence of events to be completed by the developer, including site control and access, various environmental compliance reports, and some final design details required prior to the next steps in the SCPPA paperwork sequence,” Walden adds. The same day EnviroMission announced its contract with SCPPA, financial-services and investment-banking corporation Raymond James and Associates, Inc. released an Energy Industry Brief lauding the benefits of solar-tower technology. Authored by Pavel Molchanov, named one of Forbes magazine’s Best Brokerage Analysts in 2009, the
energy international quarterly may/june 2010
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enviromission
brief outlined the two categories that large-scale solar projects typically fall into: photovoltaics, which use a semi-conducting material to generate electricity from sunlight; and concentrating solar power (CSP), which is based on a steam-turbine-generator system. He then introduced “a third type of solar technology now making its debut in the US market”—the solar tower. He highlighted the technology’s water conservation and superior project economics, both in terms of capital and operating costs. Its plant life is expected to be roughly twice as long as a CSP equivalent, he wrote, partly due to its lower operating temperature—thus adding to the sustainability profile of the project. Its daily production cycle is longer and more efficient. And with a cost of about $3.5 million per megawatt, compared with about $5 million for a CSP, Molchanov wrote that solar-tower technology could be more readily accepted among utility providers. “While the solar tower is fundamentally more similar to CSP, a variety of factors differentiate it,” Molchanov wrote. “ …In general, we look at the solar tower as a more advantageous technology.” EIQ
Comparing costs
Below is a generalized comparison of operating costs between a coal-fired plant and a solar tower. Initially, electricity costs for the solar tower are higher than those for the coal-fired power plant. After 20 years, both plants are paid for in full and no more annuities have to be paid. From this point on, the solar tower produces electricity at a low cost, since only operation and maintenance costs have to be paid. However, a new coal plant must be built after 30 years, whereas the solar tower is still operating in its original configuration. This reflects the difference in technical life between the two systems, and further increases their difference in operating costs. Levelized electricity cost Lifetime:
First coal power plant
Sencond coal power plant Annuity of 2nd coal power plant
Increase of annuity due to investment cost of 2nd coal power plant
Annuity of 1st coal power plant Annuity of solar tower
LEC, coal power plant Annuity, coal power plant Operation and maintenance, coal power plant Fuel cost, coal power plant
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30 years
Structural-engineering firm Schlaich Bergermann Solar has successfully optimized the solar-updraft tower—a concept 100 years in the making EnviroMission’s Web site cites civil and structural engineer Jörg Schlaich, a founding partner of Schlaich Bergermann and Partner (SBP), as the designer for its proposed solar-chimney technology. (Stuttgart-based SBP, a world-renowned firm, is most recently responsible for the roof of Johannesburg’s Soccer City, home to the 2010 World Cup, and has introduced a number of important technologies to structural engineering like the Speichenrad principle and the strut-and-tie model for reinforced concrete.) The EnviroMission Web site also states that Schlaich Bergermann Solar (SBS), SBP’s solar-energy team, provided technical support to the formerly proposed Australian project. SBS does not claim to have invented the solar-updrafttower (SUT) concept, clarifies managing director Rudolf Bergermann. “We know publications, 80 and 100 years old, which already show the SUT principle,” he says. That said, the company is responsible for having developed the SUT concept to a feasible stage, successfully executing the structural design of the tower and the collector. Most important, Bergermann says, the thermodynamic behavior of the SUT is now well understood and verified by tests. That understanding is demonstrated in a detailed report—authored by Schlaich, Bergermann, Wolfgang Schiel, and Gerhard Weinrebe—which offers a helpful breakdown of the SUT technology. The report also summarizes the landmark test-tower project in Manzanares, Spain, in the 1980s. The report describes that the aim of the firm’s research was to verify performance, projected from calculations based on theory, and to examine the influence of individual components on the plant’s output and efficiency under realistic conditions. Additionally, it candidly recounts the plant’s construction and performance.
Fuel cost of coal power plant
20 years
A Feasible Design
Time
LEC, solar tower Annuity, coal power plant Operation and maintenance, solar tower
energy international quarterly may/june 2010
According to the report, the Manzanares tower was comprised of a guyed tube of trapezoidal sheets, which stood on a supporting ring ten meters above ground level; that ring was supported by eight thin, tubular columns, allowing warm air to flow in, practically unhindered, at the base of the tower. A pre-stressed membrane of plastic-coated
fabric, shaped to provide good flow characteristics, formed the transition between the roof and the tower, which was guyed at four levels and in three directions, secured to foundations with rock anchors. The tower was erected at ground level, utilizing a specially developed incremental lifting method proposed by Brian Hunt of SBP: The top section of the tower was first installed on a lifting ring on the ground, then raised onto the supporting ring by means of hydraulic presses. Subsequent sections, also assembled on the ground, were then connected to the already installed top tower section. The whole assembly then was lifted. For 32 months, between 1986 and 1989, the plant ran on a daily basis. As soon as the air velocity in the tower exceeded a set value, typically 2.5 meters per second, the plant started up and automatically connected to the public grid—an average of 8.9 hours per day during that period. Total operation time of the plant with net positive power to the grid was 3,157 hours, including 244 hours of net-positive power to the grid at night. For SBS, the results showed that the system and its components were dependable, and that the plant as a whole was capable of highly reliable operation. From the extensive measurements taken in Manzanares, SBS produced a computer program that can exactly predict necessary plant dimensions—tower height and
diameter, and collector diameter—as well as the yearly energy output for an SUT, given the location and its solar radiation. SBS is the exclusive owner of this program and its basis, the measurements from Manzanares. No other party, including EnviroMission, has access, Bergermann says, which is why the firm finds the SBS association EnviroMission purports problematic.
Rudolf Bergermann (left) and Jörg Schlaich (right) are managing partners at Schlaich Bergermann Solar, the engineering firm that perfected the solar-updraft technology.
According to SBS, in 1996 the firm entered into an agreement with SolarMission Technologies—the company of which EnviroMission finally acquired majority control in December 2008. But Bergermann says any information transferred from SBS to EnviroMission during the cooperation period was limited to a preliminary design executed for the project in Australia and does not enable EnviroMission to design a solar-updraft tower itself. “Contrary to the impression EVM creates on their Web site, SBS is not the designer for EVM anymore,” Bergermann says. “Neither EnviroMission nor SolarMission hold any license rights from SBS about their solar-updraft tower know-how.” That includes valuable know-how gleaned from the SBS pilot plant in Manzanares. In short, a lack of funding may not be the only deterrent to EnviroMission’s ambition to build the first solar chimney in the United States.
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last word
global annual energy use The demand for energy has nearly doubled worldwide since 1971, and will continue to increase in the years ahead. Below, an overview of current and projected fuel-consumption rates. 10,345 million tons oil equivelent NUCLEAR 7%
COAL 23%
OIL 36%
4%
72%
38%
24%
36%
2% 15% 16%
69%
29%
16%
8%
47%
10% 14%
100%
100%
Residential/commercial 2518 million toe (5172 Mt CO2)
UNITED STATES 293 million people
Electricity generation 3764 million toe (9417 Mt CO2)
Transportation 1827 million toe (4914 Mt CO2) 3%
10%
13% 41%
Industry 2236 million toe (4076 Mt CO2) 28%
46%
20%
43%
70%
29%
Fuel consumption (million tons of oil equilavent) 1,000 2,000 2002 2010 2015
3,000
2020 2025 2,000 CO2 emissions (million tons)
82
4,000
6,000
CHINA 1.3 billion people
HYDRO 2%
GAS 21%
BIOMASS 11%
energy international quarterly may/june 2010
97%
Fuel consumption (million tons of oil equilavent) 500 1,000 1,500
2,000
2,500
2002 2010 2015 2020 2025 2,000 CO2 emissions (million tons)
4,000
6,000
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www.kentpower.com energy international quarterly may/june 2010