January edition of Tank Storage Magazine by Tank Storage Magazine

Jan 2022 | Volume 17 | Issue 07

THE STORAGE OUTLOOK

NAVIGATING THE ENERGY TRANSITION

THE SHORTLIST

Senior executives from nine storage terminals reflect on 2021 and look ahead to what’s in store for 2022

IHS looks at the effects of the energy transition on oil products, petrochemicals and subsequently tank storage operators

We reveal the highly anticipated shortlist for the 2022 Global Tank Storage Awards

Established 2005. Trusted. Valued. Influential.

Class 1, Div 1 / ATEX Zone 1 Certified

The #1 Distributor of Robotic Industrial Cleaning Equipment Precise Tank Cleaning Tools Inc. is a North American company dedicated to bringing the most advanced industrial cleaning tools to the market today. As the exclusive worldwide distributor for Radical Robotics products, Precise Tank Cleaning Tools’ equipment brings a unique marriage of software and high-tech robotic tools that allow you to seamlessly plan and execute even the most complex job to perfection. Over the years, our equipment has been engineered to produce the most efficient industrial cleaning systems in the industry. Whether you’re cleaning a tank or a vessel, Precise Tools has the equipment you need to get the job done right.

Exclusive distributor for:

www.radicalrobotics.ca

Your one and only stop for: • • • • •

Robotic Tank Sweeps Robotic Manway Cannons Robotic Camera and Lighting Rigs Circulation Management Tanks Full featured Universal Command Centers

• Robotic Vessel Cleaning Tools • Portable Mini Control Stations & Mini Hydraulic Power Units • Automated Tracked Machines • Fully-integrated Project Management Solutions

Contact: North America & Europe: Phone: 1-780-542-4662 Email: info@precisetools.ca Address: 201 19 Ave #4, Nisku, AB T9E 0W8 www.precisetools.ca

Africa, Asia & the Middle East: Phone: +356 9949 5365 Email: sarebi@precisetools.ca

UP FRONT CONTENTS

CONTENTS Jan 2022 | Volume 17 | Issue 07 UP FRONT 04 Contributors 06 Comment

TERMINAL NEWS 08 Europe 13

The Americas

18 Africa & the Middle East 20 Asia Pacific 22 Incident report 24 Tank terminal update

TANK STORAGE AWARDS 26 The shortlist We reveal the highly anticipated shortlist for the 2022 Global Tank Storage Awards

EXCLUSIVE INTERVIEWS 29 The storage outlook Senior executives from nine storage terminals reflect on 2021 and consider what the future might hold

TECHNICAL FEATURES 53 Technical news 56 Non-invasive liquid flow measurement in tank storage Find out the benefits of Katronic’s non-invasive, clamp-on flow measurement devices 58 Raising the roof Tank Storage Magazine takes a look back at some of the most impressive tank roofing projects over recent months 62 AI for optimising terminal efficiency Find out more about how Actemium helped a liquid bulk terminal in Antwerp optimise its mechanism for tank pressure control 63 What are the top terminal innovations from 2021? Tank Storage Magazine showcases the new technologies which have changed the tank storage sector 68 25 years of innovation Read the story of Abfad’s double-skin linings, which protect tanks from corrosion and offer integrity monitoring

38 Preparing for the evolution of energy Enterprise Products Partners talks about its new focus on evolving technologies for a lower carbon economy

70 Reducing the fugitive emissions Assentech’s MD Ewart Cox explains why testing breather vents is so important to ensure ESG compliance

40 Navigating to a sustainable future Jason Hornsby tells Tank Storage Magazine about Navigator Terminals’ push towards sustainable product logistics

72 The assurance of liner integrity Read a summary of the new report from the Energy Institute addressing the risks of under-tank liner damage during tank floor repair

42 Preparing for underground hydrogen storage The leading and only independent cavern operator in Northwest Europe is preparing for underground hydrogen storage

74 The automatic inspection drone is taking off Beyond visual line of sight (BVLOS) inspection drones offer numerous benefits for tank operators

44 Reimagining a terminals business Exolum’s Andres Suárez looks back on a year of change for the company formerly known as CLH Group

MARKET ANALYSIS 46 Decarbonising shipping Paul Hickin from S&P Global Platts looks at how shipping can meet decarbonisation targets 48 The changing face of liquid fuels supply Francis Osborne from Argus Media examines government regulations, supply chain changes and emerging fuel options 50 Navigating the energy transition IHS Markit’s Olivier Maronneaud looks at the effects of the energy transition on oil products, petrochemicals and subsequently tank storage operators 52 Compulsory stocks for future energy carriers How requirements for compulsory stocks needs to evolve with the energy transition PAGE 02

76 Small cause, big effect Northern German company Hasytec has tackled the problem of biocorrosion and developed an efficient solution

EVENTS 78 Challenges and adaptation ahead Review of this year’s Med Hub Day in Tarragona and online 82 Accelerating deployment of robotics for inspection and maintenance The SPRINT Robotics Collaborative focusses on the value that robotics can deliver to end-user organisations at the forthcoming world conference 85 Connect the dots and maximise your system through smart engineering Derek Blagg and Adam Wishall from Varec summarise their recent Tank Talk webinar

Reliable Fire Protection Products for the Toughest Challenges ®

Externallyresettable DDV Diaphragm Deluge Valve— compact, epoxycoated, rated for up to 400 psi (27.6 bar) pressure Model MV Medium Velocity Spray Nozzle—fixed water spray nozzle available with corrosionresistant Electroless Nickel PTFE plating

Backed by over 100 years of manufacturing experience Reliable’s Product Technology group has developed a comprehensive portfolio of fire protection equipment supported by an international Technical Services team with over 350 years of combined experience in fire protection. Reliable® delivers the industry’s highest quality fire protection equipment. Reliable® products are designed and assembled in a state-of-the-art

engineering, testing, and manufacturing facility in Liberty, South Carolina, USA.

Model F1-FTR Pilot

Line Detector Learn more about our extensive portfolio of products and solutions including: remote resetting epoxy-coated diaphragm deluge valves, corrosion resistant nozzles and sprinklers, custom-designed and fabricated valve riser skids and weather-proof enclosed valve units. Visit us at reliablesprinkler.com/tankstorage

Manufacturer and Distributor of Fire Protection Equipment

UP FRONT CONTRIBUTORS

CONTRIBUTORS Jan 2022 | Volume 17 | Issue 07

PUBLISHER

CEO EASYFAIRS UK & GLOBAL

Margaret Dunn +44 (0)20 3551 5721 margaret@tankstoragemag.com

Matt Benyon +44 (0)20 3196 4310 matt.benyon@easyfairs.com

DEPUTY EDITOR Helen Tunnicliffe +44 (0)20 3196 4402 helen@tankstoragemag.com HEAD OF SALES Sophie McKimm +44 (0)20 3196 4356 sophie.mckimm@easyfairs.com

Jan 2022 | Volume 17 | Issue 07

THE STORAGE OUTLOOK

NAVIGATING THE ENERGY TRANSITION

THE SHORTLIST

Senior executives from nine storage terminals reflect on 2021 and look ahead to what’s in store for 2022

IHS looks at the effects of the energy transition on oil products, petrochemicals and subsequently tank storage operators

We reveal the highly anticipated shortlist for the 2022 Global Tank Storage Awards

SUBSCRIPTION RATES A one-year, 7-issue subscription costs €250. Individual back issues can be purchased at a cost of €45 each. CONNECT WITH US

INTERNATIONAL SALES MANAGER David Kelly +44 (0)20 3196 4401 david@tankstoragemag.com

@tankstorageinfo

Tank Storage Magazine Front cover courtesy: Assentech

SENIOR SALES MANAGER Matthew Barlow +44 (0)20 3198 4380 matthew.barlow@easyfairs.com MARKETING MANAGER Rikki Bhachu +44 (0)20 3196 4282 Rikki.Bhachu@easyfairs.com DATABASE MANAGER Alison Church +44 (0)20 3196 4305 alison.church@easyfairs.com

Established 2005. Trusted. Valued. Influential.

Tank Storage Magazine

CONTACT T +44 (0)20 3196 4300 F +44 (0)20 8892 1929 margaret@tankstoragemag.com www.tankstoragemag.com Easyfairs 2nd Floor, Regal House 70 London Road Twickenham TW1 3QS United Kingdom

model in sub-saharan africa. introducing the independent storage Oiltanking matola explains how it is

as it explores gas storage. is ensuring greater energy security The sharjah national oil corporation

model in sub-saharan africa. introducing the independent storage Oiltanking matola explains how it is

IN A CAPTIVE MARKET AN INTERNATIONAL CONCEPT

NEW GAS CHAPTER SPEARHEADING THE UAE’S

IN A CAPTIVE MARKET AN INTERNATIONAL CONCEPT

ISSN 1750-841X Aug / Sep 2019 | Volume 15 | Issue 04

Tank Storage Magazine, (ISSN 1750-841X) is published seven times a year (in February, March, May, August, September, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The US annual subscription price is $243. Airfreight and mailing in the USA by agent named WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. Periodicals postage paid at Jamaica NY 11431. US Postmaster: Send address changes to Tank Storage Magazine, WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK.

PAGE 04

Tank Truck Equipment

Loading Arms

Fall Prevention Equipment

Grounding & Earthing Devices

Instrumentation & Flow Control

Integrated Systems

Vapour Recovery & Gas Combustion

Pumps

UP FRONT COMMENT

HERE WE GO AGAIN

LOOKING BACK at this time last year, I can hardly believe we’re here again. Many of us thought (hoped) lockdowns were a thing of the past, yet as I write this the Netherlands has just gone back into lockdown, Australia is delaying the next phase of its borders re-opening and France, Austria and Cyprus have tightened travel restrictions – all to try and slow the spread of the Omicron variant. These restrictions have a knock-on effect on demand and throughput levels and the on-going COVID-19 pandemic has made 2021 another extremely turbulent and challenging year for the storage sector. Within this edition we speak to terminal operators across the globe to find out the impact the pandemic, Ever Given’s grounding, lockdowns, and extreme weather conditions have had on terminal operations this year. Plus we learn more about terminals’ plans for 2022 and what the future might hold for the storage sector. With a special focus on sustainability, this issue also features exclusive interviews with Navigator Terminals, Enterprise Products Partners, Storag Etzel and Exolum. There can be no doubt that the pandemic has accelerated the energy transition and we’re doing our best to keep you informed on how the market is preparing for the next chapter.

PAGE 06

Also, on page 26 we reveal the shortlist for the Global Tank Storage Awards. With more nominations received than ever before, the winners will be revealed on the first day of StocExpo 2022. The event will return after two years to the brand-new, larger, venue of Schiecentrale in Rotterdam, the Netherlands. If you haven’t done so already, make sure you purchase your tickets for this event to network and celebrate with your colleagues and peers – you can find out more at: www.tankstorageawards.com We look forward to seeing you there but in the meantime, all that’s left for me to do is to wish you all a happy, safe and successful 2022, Best wishes

Speakers announced

The StocExpo conference will help the terminal industry prepare for the energy transition, the digital transformation and the next wave of innovation.

Gary Kalmin HG Storage International

Catherine Gras Storengy UK & Germany

Jorge Lanza Exolum

Hero Boonstra VTTI

Oleksandr Siromakha Mabanaft

Leo Brand Vopak

Rutger Van Thiel Alkion Terminals

Ramon Ernst Evos

Øistein Jensen Odfjell

TERMINAL NEWS EUROPE

TERMINAL NEWS: EUROPE UK

STANLOW TERMINALS INVESTS IN BIOFUEL CAPACITY Stanlow Terminals, based in northwest England, UK, has announced a three-year plan to develop the UK’s largest biofuels storage hub. The Stanlow Manufacturing Complex and Tranmere Terminal in the Port of Liverpool will have a capacity of 300,000 m3, and will allow customers to store, blend and distribute biofuels suitable as drop-in replacement transport fuels for the road, aviation and marine sectors. Stanlow Terminals already provides biofuel storage capacity for its customers with dedicated supply and delivery infrastructure, and in October 2021,

completed a £500,000 (€588,000) upgrade of biofuel tanks for a customer supplying E10 vehicle fuel. The new investment will support projects such as the new Fulcrum NorthPoint facility, which will produce 100 million L of low carbon SAF annually, and initiatives for sustainable hydrotreated vegetable oil (HVO), including waste-based feedstock import facilities, and blending and capacity expansion for bioethanol and biomethanol. The company is also carrying out feasibility studies for additional investments in other lowcarbon energy products, such as e-fuels, bioLPG, biomethane, hydrogen and ammonia. Stanlow Terminals says there is growing demand from its partners and customers seeking to decarbonise operations. The company is also supporting the UK’s hydrogen economy by developing storage and distribution facilities for HyNet Northwest, an industry project seeking to provide a multi modal hydrogen and carbon dioxide transport hub.

SUMA, the leading innovator in advancing mixing technology.

Looking for longterm digester efficiency? ■ 60 years of experience in mixing of various substrates ■ Tailored solutions ■ Long-term reliability ■ High operational safety ■ User friendly application

SUMA Rührtechnik GmbH Martinszeller Str. 21 | 87477 Sulzberg/Germany E-Mail: info@suma.de | www.suma.de/en SUMA America Inc. (USA) | www.gosuma.com BRASUMA Ltda. (Brasil) | www.brasuma.com

PAGE 08

‘The government has set out a clear plan for decarbonising the economy and we are committed to playing our part in helping to achieve that,’ says Prashant Ruia, non-executive chairman of Essar, Stanlow Terminals’ parent company.

The Netherlands

ROTTERDAM AND WESTERN AUSTRALIA SIGN MOU FOR HYDROGEN The Port of Rotterdam and the government of the state of Western Australia (WA) have signed a memorandum of understanding (MoU) to investigate setting up a renewable hydrogen export chain. The MoU covers the production, storage, transport and the use of renewable hydrogen. The two parties will also work together to share knowledge on policy, regulation and technology developments. The Port of Rotterdam is keen to position itself as a major hydrogen import hub for Europe, plans reinforced by the Dutch government’s national hydrogen strategy. In August 2021, it joined forces with Koole Terminals, Chiyoda Corporation and Mitsubishi Corporation to carry out a feasibility study into commercial-scale hydrogen imports. According to Allard Castelein, Port of Rotterdam CEO, 13% of the EU’s energy needs currently passes through the port, and this energy will shift to green energy. By 2050, the port estimates that it will handle 20 million tonnes of hydrogen annually, 90% of which will be imports. ‘Although the distance between Australia and Europe may seem far, the excellent local conditions such as the amount of sunshine, wind, availability of space and investment climate in Western Australia can lead to a competitive hydrogen product delivered to the Northwest European market,’ he says. ‘This new energy from ‘down under’, distributed via Rotterdam’s terminals and hydrogen backbone, could further help decarbonise Europe’s industries and society as a whole.’ WA hydrogen industry minister Alannah MacTiernan adds: ‘We have already committed A$160 million [€101 million] to

TERMINAL NEWS EUROPE support the development of a renewable hydrogen industry in Western Australia, including the A$117.5 million announced last week to attract federal funding for renewable hydrogen hubs in the Pilbara and Mid-West. Through this MoU we will gain a better understanding of the hydrogen export supply chain between Western Australia and the Port of Rotterdam, and what we need to do to make sure the state is an exporter of choice for Europe.’

The Netherlands

GES INVESTS IN GUNVOR’S STARGATE TERMINAL Global Energy Storage (GES), which launched in May 2021 to focus on products for the energy transition, has made its first major investment, buying an interest in part of the assets of Gunvor Group’s Stargate Terminal in the Port of Rotterdam in the Netherlands. The deal has been approved by the Port of Rotterdam Authority. The site includes a ‘significant’ waterfont with deepwater access, brownfield development opportunities and potential greenfield

development sites. GES plans to develop more than 20 hectares in the port. Its proposals include a new multi-purpose seagoing jetty, an infrastructure for the consolidation of biofuel storage, storage for renewable fuels, gas storage, gas to chemicals production, green and blue hydrogen, and hydrogen carriers such as ammonia. GES CEO Peter Vucins says that the Port of Rotterdam, which is Europe’s largest port with connectivity to inland waterways and pipelines as well as deepwater access, is ‘ideally placed’ for the development. Executive chairman Eric Arnold adds that the deal is the first of what the company hopes will

be many deals for low-carbon storage and logistics infrastructure, with rapid expansion planned. Gunvor will be a long-term partner of GES to support the development of environmentally responsible projects. Shahb Richyal, global head of portfolio at Gunvor, says that the deal is in line with Gunvor’s strategy to support the energy transition at key asset locations. ‘Alongside a new jetty that we aim to develop and low-carbon commodity infrastructure, we are also looking to become part of the logistics chain needed to import blue and green hydrogen. I hope this gives a glimpse of the size of our ambitions,’ says Vucins.

PREVENT ODOUR FROM STORAGE TANKS The Go4DK Carbon Filter is designed for API 650 Storage Tanks. l

Flow calculations are all in accordance with API 2000, latest edition. Safety PV valves are sized in accordance with flow calculations to protect each tank. As a mechanical odour filter, there are no electrical parts, except if the emergency shut-down system is required.

The proven filter technology removes 95-98% of all particles in the air phase, before entering the activated carbon, extending the lifetime of the activated carbon. Produced from the material SS316, the Go4DK design allow activated carbon, ROZ3 / RST3, to last 3-5 years before needing replacement. PROVEN RESULTS: This technology is already in use at Shell’s Refinery, REPSOL’s refinery, MOBC, Bunker Terminals, Export Terminals and more.

FIND OUT MORE www.cbi.dk

– Odour Filters / Spec / Options / Customize Contact – Tommy Christensen, Co-Founder and CEO

tch@cbi.dk

PAGE 09

TERMINAL NEWS EUROPE

BP LOOKS TO ADD GREEN HYDROGEN CAPACITY TO TEESSIDE

TSA LAUNCHES ENERGY TRANSITION CHARTER

BP is planning a new, 500 MWe green hydrogen production facility in Teesside in northeast England, UK, HyGreen Teesside.

The UK’s Tank Storage Association (TSA) has launched its Energy Transition Charter to affirm the sector’s commitment to the UK’s climate neutrality targets.

The initial 60 MWe phase of the facility could be operational by 2025. It will be developed in stages, with the full 500 MWe capacity reached in 2030. BP will make a final investment decision on the project in 2023. The company is already pressing ahead with plans for H2Teesside, a 1 GW blue hydrogen production facility in Teesside, with associated carbon capture and storage (CCS) facilities, Between them, H2Teesside and HyGreen Teesside will have the capacity to produce 30% of the UK’s 2030 hydrogen production target of 5 GW. BP says that it is working with industry, local administration such as the Tees Valley Combined Authority (TVCA) and the UK government to increase the pace of decarbonisation in transport. HyGreen Teesside will help transform Teesside into the UK’s first major hydrogen transport hub.

PAGE 10

The charter was developed in collaboration with the TSA’s 60 member companies engaged in bulk storage and energy infrastructure, which between them operate 302 terminals. The commitments within it cover encourage leadership, innovation, skills development, promotion and engagement. Amongst other things, TSA members have pledged to reduce their carbon footprint, promote alternative energy sources and ensure security of supply. They will work with relevant stakeholders, regulators, technical bodies and institutions as they seek to achieve their objectives. ‘The TSA and its members are committed to leading from the front in the journey to net zero. With efforts already underway, the Energy Transition Charter highlights

the sector’s ambitions to seize future opportunities. By working with regulators and other stakeholders to ensure an effective transition to alternative energy sources, and by supporting the development of future skills, guidance and standards necessary to safely manage changing processes and inventories, our sector is committed to playing its full part in the transformative journey ahead,’ says Peter Davidson, TSA executive director.

CONSORTIUM PLANS GREEN HYDROGEN FACILITY AT FLOTTA TERMINAL A consortium of Macquarie’s Green Investment Group, TotalEnergies and Scottish developer Renewable Infrastructure Development Group (RIDG) is considering develop a green hydrogen production facility at the Flotta Terminal in Orkney, Scotland. The 4.5 million bbl Flotta Terminal, run by Repsol Sinopec, currently stores and processes crude oil, brought in by a 30” (76 cm) subsea pipeline from ten

TERMINAL NEWS EUROPE

ENGINEERED EXCELLENCE Select Control Valves, Regulators, & Storage Tank Products We are a leading manufacturer and worldwide marketer of control valves, regulators, controllers, pressure/vacuum relief vents, and flame and detonation arrestors.

MODEL 3100 PRESSURE VACUUM VENT

offshore oil fields on the UK Continental Shelf. Around 50 tankers per year, up to 200,000 DWT, call at the terminal. The consortium, Offshore Wind Power Limited (OWPL), is working with Repsol Sinopec, and Uniper, a world leader in hydrogen technology, to study the potential of a hydrogen production facility powered by offshore wind. EMEC Hydrogen, part of the European Marine Energy Centre (EMEC) which has pioneered green hydrogen in Orkney, is also involved.

MODEL 8900 TANK EMERGENCY VENT

OWPL has submitted a proposal to the Crown Estate Scotland’s offshore wind leasing round (ScotWind) to develop a new windfarm, the West of Orkney Windfarm in an area of sea west of Orkney, which, if successful, will provide renewable electricity to the hydrogen production facility. José Luis Muñoz, CEO of Repsol Sinopec, says that adding hydrogen production to the site aligns with the company’s strategic roadmap, which includes the energy transition.

MODEL 6A00 FLAME ARRESTOR

‘The Flotta Terminal has been in operation since 1976 and has made a significant contribution to Orkney’s economy and communities for more than 40 years. This project would enable the terminal to be progressively transformed over time into a diversified energy hub where conventional oil and gas operations continue, co-existing alongside the development of a sustainable longterm green future for the facility. The repurposing of Flotta will require local stakeholders support, retaining and upskilling the current workforce as well as the creation of long-term skilled jobs during both construction and hydrogen operations,’ he adds.

MODEL 1078 VACU-GARD

James Stockan, leader of Orkney Islands Council, says: ‘Flotta is an ideal location for green hydrogen production – it is surrounded by the best wind resource in Europe, it lies close to major shipping routes within the vast natural harbour of Scapa Flow. The time is right to maximise the incredible natural assets and geography of the Flow and Orkney to ensure a long-term sustainable, climatefriendly future for our communities.’

Cashco, Inc. P.O. Box 6 · Ellsworth, KS 67439-0006 Ph. (785) 472-4461 · Fax: (785) 472-3539

CAS-264.indd 1

1/21/20 PAGE 11

3:51 PM

The FeTSA Supplier pArTnerShip The FeTSA Supplier pArTnerShip

Why Should i join The FeTSA Supplier pArTnerShip?

We offer you privileged access and visibility to senior decision makers in the tank storage industry through We offer you privileged andinclude: visibility to senior decision makers in the tank storage industry through our events, publications and meetings. Specificaccess benefits

Why Should i join The FeTSA Supplier pArTnerShip? our events, publications and meetings. Specific benefits include:

Why Should i join The Supplier pArTnerShip? We offer you privileged access and visibility to senior makers in theour tank storage industry through Why Should i joindecision The FeTSA FeTSA Supplier pArTnerShip? neTWorking: One complimentary ticket to attend Annual FETSA Conference and neTWorking: One complimentary ticket to attend our Annual FETSA Conference and our events, publications and meetings. Specific benefits include: We offer you privileged access and visibility to senior decision makers in the tank storage industry through WHY SHOULD I JOIN THE FETSA SUPPLIER PARTNERSHIP? AGM Dinner exclusively dedicated to FETSA members, conference speakers and high level through WHO SHOULD JOIN? We offer you privileged access and visibility to senior decision makers in the tank storage industry

AGM Dinner exclusively dedicated to FETSA members, conference speakers and high lev our events, publications and meetings. Specific benefits include: events, publications meetings. Specific benefits include: stakeholders from theand EU political environment. First option makers for sponsorship We off er you privileged access and visibility to senior decision in theoption tank opportunities storage industry opportunitie The FETSA Supplier Partnership is our stakeholders from the EU political environment. First for sponsorship open to companies that do business neTWorking: around the Annual Conference andand related events. One complimentary ticket to attend our Annual FETSA Conference and through our events, publications meetings. Specifi c benefi ts include: around the Annual Conference and related events. neTWorking: One complimentary ticket to attend our Annual FETSA Conference and with tank storage companies or have neTWorking: One complimentary ticket to attend our Annual Conference an AGM Dinner exclusively dedicated to FETSA members, conference andFETSA high level AGM Dinner exclusively dedicated to FETSA members, speakers conference speakers and high level an affinity with the tank storage sector. NETWORKING: One complimentary ticket to attend our Annual FETSA Conference AGM Dinner exclusively to FETSA members, conference speakers and high EU political environment. First option for sponsorship opportunities stakeholders from the EUdedicated political environment. First option for sponsorship opportunities This includes, but is not limited to: stakeholders from the and AGM Dinner exclusively dedicated to FETSA members, conference speakers and stakeholders from the EU political environment. First option for sponsorship opportun ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated around the Annual Conference and related events. ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated around the Annual Conference and related events. high level stakeholders from the EU political environment. First option for sponsorship Technical equipment providers around thewebsite Annual Conference and related events. Supplier Partnership pageSupplier of our Partnership website and willof beour included inand ourwill communication tools page be included in our communication tools opportunities around the Annual Conference and related events. Companies providing safety website, such as the FETSA website, the monthly newsletter and the annual management report such as the FETSA the monthly newsletter and the annual management report Who Should join? ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated services which are circulated to senior industry executives. You willoff bearticle entitled to draft an article which are circulated to senior industry executives. You will be entitled to draft an VISIBILITY: Name andof logo summary of services will feature on a tools Supplier Partnership page our with website and will be included communication ViSiBiliTy: Name and logo with summary ofpartnership services offered will feature oninered aour dedicated The FETSA Supplier Partnership is open to companies that do business with tank storage companies Fire fighting/protection in a quarterly supplier newsletter. ViSiBiliTy: Name and logo with summary of services offered will feature a dedicated in a quarterly supplier partnership dedicated Supplier Partnership page of our website andannual will bemanagement included inon our such asnewsletter. thesector. FETSA website, the monthly andto:the report companies or havePartnership an affinity with the tank storage This includes, but isnewsletter not limited Supplier page of our website and will be included in our communication tools Supplier Partnership page of our website and will be included in our communication communication suchindustry as the FETSA website, the be monthly the tools which are circulatedtools to senior executives. You will entitlednewsletter to draft anand article TheLoading FETSA Supplier Partnership is open to companies that do business with tank storage companies suchequipment as the FETSA website, the monthly newsletter and the annual management report manufacturers such as the FETSA website, the monthly and the annual report management report which arenewsletter circulated to senior industry management executives. in aannual quarterly supplier partnership newsletter. FeTSA knoWledge exChAnge: Possibility organise industry seminars on relevan You will be entitled to draft an article in not a quarterly supplier partnership newsletter. or have an affinity with thetotank storage sector. This includes, but is limited to:be which are circulated senior industry executives. You will be entitled to an article totodraft which are circulated to senior industry executives. Youdraft will entitled an article Companies providing auditing and

Who Should join?

FeTSA knoWledge exChAnge: Possibility to organise industry seminars on relevant

topics and/or with the approval of the relevant chair/secretariat to present new/emerging management systems in a quarterly supplier partnership newsletter. in a quarterly supplier partnership newsletter. Technical equipment providers Surveying companies topics and/or with the approval of the relevant chair/secretariat to present new/emerging technologies and legislation to ourPossibility committees/task forces. FeTSA knoWledge exChAnge: to organise industry seminars on relevant Tank farm construction and FETSA KNOWLEDGE EXCHANGE: Possibility to organise industry seminars on technologies and legislation to our committees/task forces. topics and/or with the approval of the relevant chair/secretariat to present new/emerging Companies providing safety services Port maintenance companies relevant topics and/or withauthorities the approval of the relevant chair/secretariat to present new/ technologies and legislation to our committees/task forces. emerging technologies and legislation to our committees/task forces. industry seminars on relev FeTSA knoWledge exChAnge: Possibility to organise Technical equipment providers Surveying companies Surveying Fire companies fighting/protection companies (Tank) Cleaning companies

FeTSA knoWledge exChAnge: Possibility to organise industry seminars on relevant topics and/or themeeting approval of theinrelevant pArT oF our CommuniTy: Use ofwith FETSA rooms Brusselschair/secretariat at preferential to present new/emerg topics and/or with the approval of the relevant chair/secretariat to present new/emerging Companies providing safety services Port authorities Loading equipment manufacturers Electrical & Instrumentation (E&I) technologies and legislation to our committees/task OFFETSA OUR COMMUNITY: Useuse of FETSA meeting rooms in Brussels pricesPART (subject to availability). You can the FETSA on your websiteatandforces. printed pArT oF our CommuniTy: Use of meeting rooms in Brussels atlogo preferential (Tank) Cleaning companies pArT oF our CommuniTy: Use of FETSA meeting roomsservices in Brussels at preferential technologies and legislation to our committees/task forces. control automation preferential prices (subject to availability). You can use the FETSA logo on your materials incan order tothe state that you areon part of the FETSAand supplier partnership. prices (subject to availability). You use FETSA logo your website printed prices (subject to availability). You can use the FETSA logo oncompanies your website and printed Companies providing auditing Fire fighting/protection companies (Tank) Electrical & Instrumentation (E&I) website and printed materials in order to stateCleaning that you are part of the FETSA Port authorities

inservices order tosystems state that you are parttoofstate the that FETSA supplier materials in order you are part of partnership. the providers FETSA supplier partnership. Database and management control materials automation supplier partnership.

pArT oF our CommuniTy: Use of FETSA meeting rooms in Brussels(E&I) at preferential Loading equipment manufacturers Electrical & Instrumentation Database providers Tank farm construction and Magazines and other industry publications inSighT: You will receive our exclusive members only and annual managem prices (subject availability). You canreceive use logo on your website andnewsletter printed pArT oF our CommuniTy: Use of to FETSA meeting inthe Brussels at preferential INSIGHT: Yourooms will ourFETSA exclusive members only newsletter and annual control automation services companies Magazinesmaintenance and other industry report so you are kept informed about the challenges we face in EU policy. inSighT: You will receive our exclusive members only newsletter and annual management Companies providing auditing management report so you are kept informed about the challenges we management face in EU policy. materials order to state thatour you are on part of the FETSA supplier partnership. prices (subject to availability). Youincan the FETSA logo your website and printed publications inSighT: Youuse will receive exclusive members only newsletter and annual report so you are kept informed about the challenges we face in EU policy. andmaterials management systems Database providers in order to state report that you are part of the FETSAabout supplier partnership. so you are kept informed the challenges we face in EU policy.

PRICE Tank farm construction and

• • • •

Magazines and other industry publications

inSighT: You will receive our exclusive members only newsletter and annual manage report so you are kept informed about the challenges we face in EU policy. priCeperiod (1 January). Billed annually at the start of the subscription Annual fee of EUR 2500 (excl. VAT.)

maintenance companies

priCe inSighT: You will receive our exclusive members only newsletter and annual management

All applications for Supplier Partnership are subject toEUR approval the FETSA Executive Committee, and subject to the terms and conditions set · Annual feefee of 2500 (excl. VAT.) · Annual of EUR 2500 (excl. VAT.) report so you are kept informed about the challenges we face in EU policy. out in the Supplier Partnership Agreement.

priCe

Competition law must be respected.

· Billed annually atatthe period(1(1 January). · Billed annually thestart startof ofthe the subscription subscription period January).

· Annual fee of EUR 2500 (excl. VAT.)

· All· applications forforSupplier aresubject subjecttoto approval FETSA Executive Committee, All applications SupplierPartnership Partnership are approval thethe FETSA Executive Committee, Contact Ravi Bhatiani, for further information · Billed annuallyrb@fetsa.eu at the priCe start ofand thesubject subscription period (1 January). theterms terms andconditions conditions set Supplier Partnership Agreement. and subject toto the and setout outininthe the Supplier Partnership Agreement.

· Annual fee of EUR 2500 (excl. VAT.) · Competition law must be respected.

· All applications for Supplier Partnership subject to approval the FETSA Executive Committee, · Competition law are must be respected. priCe FETSA and subject to the terms andannually conditions setstart out of in the subscription Supplier Partnership · Billed at the period (1 Agreement. January). Rue Abbé Cuypers 3 | b 1040 Brussels, Belgium | Tel. +32 2741 68 33 | www.fetsa.eu · Annual fee of EUR 2500 (excl. VAT.)

Federation of European Tank Storage Associations

· Competition law must· All be applications respected. for Supplier Partnership are subject to approval the FETSA Executive Committee,

TERMINAL NEWS THE AMERICAS

TERMINAL NEWS: THE AMERICAS terminal in the Port of Houston with deepwater capabilities. The terminal has existing permits for additional berthing positions. Vopak Moda Houston is directly connected via pipeline to the Port of Houston petrochemical complex, the world’s second-largest petrochemical complex and the largest in the US.

VOPAK’S MODA HOUSTON MARINE TERMINAL IS NOW FULLY OPERATIONAL

‘With the ability to safely and reliably transport ammonia and other

Vopak Moda Houston’s marine terminal in the Port of Houston is fully operational. Formed in 2016, Vopak Moda Houston is a joint venture between Royal Vopak and Moda Midstream.

pressurised gases for our current and future customers, Vopak Moda Houston is a vital link in the new energy transition supply chain. We are in active discussions with customers to provide logistics solutions for low-carbon products, including storage and handling of green and blue ammonia, hydrogen and lowcarbon bunkering,’ says Moda Midstream CEO and founder Jonathan Z Ackerman, adding: ‘Vopak Moda Houston is well positioned to become the premier lowcarbon ammonia and hydrogen terminal hub on the US Gulf Coast.’ Vopak Americas President Chris Robblee says: ‘This very well fits Vopak’s strategy of developing new infrastructure solutions for products like ammonia.’

Strategically located in Houston’s refining and petrochemical corridor and in close proximity to multiple ammonia, hydrogen and nitrogen pipelines, Vopak Moda Houston is the first greenfield terminal development in the Port of Houston in more than a decade. Designed to handle very large gas carriers (VLGCs), as well as smaller vessels and barges, Vopak Moda Houston is the only waterborne ammonia

Vopak Moda Houston also operates a unit train rail loop served by all three main rail lines. Vopak Moda Houston has completed construction of its rail infrastructure for the storage and handling of pressurised gas for a global energy company.

Specialist Training for the Storage Tank Industry Live online, classroom or e-learning • • • •

Gain or renew your 5-year Certificates of Competence* Courses based on EEMUA 159 English, Dutch, German and French language options Select from courses throughout 2022, including:

TankAssessor courses* 24-28 January 2022 – in English – live online 7-11 February 2022 – in Dutch – live online 28 March – 1 April 2022 – in French – classroom – Près de Paris, FR 4-8 April 2022 – in German – classroom – near Hanover, DE 25-29 April 2022 – in English – classroom – near London, UK 13-17 June 2022 – in Dutch – classroom – near Rotterdam, NL

TankInspector courses* 14-17 March 2022 – in English – live online 16-19 May 2022 – in English – classroom – near London, UK

Above ground flat bottomed storage tanks A guide to inspection, maintenance and repair

Publication 159 Edition 5

TankIntro courses 21-23 February 2022 – in English – live online 20-22 June 2022 – in English – classroom – near London, UK Storage Tanks e-learning On-demand – in English and in Dutch

More choices, information and registration at www.eemua.org

Tank Assessor_(175x120mm)_(cmyk)_Jan2022_1.indd 1

14/12/2021 15:20

PAGE 13

TERMINAL NEWS THE AMERICAS

Ecuador

Moving Energy Forward

PETROECUADOR AND PRIMAX SIGN PETROLEUM LOGISTICS CONTACT Ecuador’s state oil company Petroecuador has signed a 15-year contract with fuel distributor Primax for the receipt, transport, storage and dispatch of petroleum products.

Individual Solutions for Oilfield Pump Systems As an expert manufacturer of downhole and surface pumps, we produce oilfield pump systems according to the highest quality standards. The viscosity of oil or its percentage of gas or sand makes no difference to the NETZSCH positive displacement pumps. The multiphase fluid boosting solutions take the pressure off the well and support the transfer over long distances.

Petroecuador’s Esmeraldas, La Libertad and Tres Bocas oil docks will be used for the contract, along with associated terminals, pipelines and refineries. The contract forms part of the Ecuadorean government’s strategy, outline in Decree 95, to open up the Ecuadorean fuel market and allow the delivery of better-quality fuel. Fee collection will be carried out by Ecuador’s Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources, according to the general manager of Petroecuador, Pablo Luna. He added: ‘There is a different rate for the use of each infrastructure segment, which in turn allows Petroecuador to charge differently. Additionally, there is the option of the single rate of US$0.027665 [€0.025] per gallon, which will be applicable as long as the distribution of the product is complied with in all the terminals that were considered for setting the rate.’ Petroecuador also has similar contracts in place with Corpetrolsa, Terp el- Comercial Ecuador CIA, Servicios WFSE Ecuador and Duragas.

US RELEASES 50 MILLION BBL OF CRUDE FROM SPR www.netzsch.com

The US Department of Energy (DOE) will release 50 million bbl of crude oil from the US strategic petroleum reserve (SPR) in an effort to reduce oil prices and address supply shortages. US president Joe Biden ordered the release of up to 50 million bbl of oil from the US SPR, after a request to OPEC and Russia to increase oil production was refused. Several other high energy consuming nations, including China, India, Japan, South Korea and the UK also agreed to release oil from their SPRs. Oil prices had risen to their highest level for seven years after demand outstripped supply. Prices have since begun to drop, but the US is pressing ahead regardless.

PAGE 14

Initially, 32 million bbl will be made available from the SPR’s four salt cavern storage sites. Big Hill and Bryan Mound in Texas will each release 10 million bbl, while in Louisiana, 7 million bbl will be released from West Hackberry and 5 million bbl from Bayou Choctaw. The oil will be released on an exchange basis, whereby companies receiving oil will have to return it at a future date when oil prices are expected to be lower. The mechanism acts as a bridge from higher to lower prices. In this case, oil must be returned in 2022, 2023 and 2024. Deliveries will take place from January-April 2022. The first exchange, of 4.8 million bbl, will go to ExxonMobil. Delivery will be conducted from the Bryan Mound, West Hackberry, and Bayou Choctaw SPR sites. The DOE will continue to accept bids from interested parties for the additional barrels authorised for exchange. Additionally, 18 million bbl of oil was put up for sale in December 2021. Biden says that he will take additional action if necessary, and has asked the Federal Trade Commission to investigate oil and gas markets to find out if ‘illegal conduct’ means lower oil prices are not passed down to domestic customers. Many analysts are warning this could mark the beginning of a new power struggle in the global oil markets.

VENTURE GLOBAL TO BUILD FOURTH LOUISIANA EXPORT FACILITY US company Venture Global LNG is to invest more than US$10 billion (€8.9 billion) in developing its fourth LNG export facility in Louisiana, US. The new facility will be known as CP2 LNG and will be located in Cameron Parish, adjacent to Venture Global’s existing Calcasieu Pass LNG terminal. It will have a nameplate liquification capacity of 20 million tpa of LNG, and will be supplied with natural gas by the CP Express pipeline. Ventrual Global has submitted a formal application to the Federal Energy Regulatory Commission (FERC) to build and operate the facility. Venture Global announced the news alongside Louisiana Governor John Bel Edwards. CP2 LNG is expected to generate US$2 billion in local revenue and create thousands of new jobs with an average salary of US$120,000. The company’s total planned capital investment in Louisiana now amounts to more and US$20 billion.

TERMINAL NEWS THE AMERICAS

COLOMBIA EXPANDS OKIANUS TERMINALS Colombia’s Ministry of Mines and Energy has begun expansion works at Okianus Terminals in Cartagena, Colombia, for imports of LPG. US

NOLA STARTS WORK ON NEW MISSISSIPPI RIVER WHARF Nola Oil Terminal, in Plaquemines, Louisiana, US, has begun construction work on phase one of its 10 million bbl oil and refined products terminal on the Mississippi River. The terminal will be the first in the region capable of handling the New-Panamax and Suezmax vessels, up to 366 m long and up to 170,000 DWT. The waterside works which make up phase one comprise two deepwater docks and a barge dock, which will serve both inland and oceangoing tank barges. The second phase of the project will be the landside works, which includes storage, blending and transferring facilities. Alongside the prime location, the facilities will offer added value to clients. After completion, which is expected in mid-2022, the terminal will be able to handle up to six tankers per week. All required permits are in place, and site preparation, such as site clearing, open channel drainage, construction access roadways, geotechnical investigations, pile load tests and environmental studies, has been completed.

fuels, compliant with US and European standards for sulphur, particulates and NOx, to the Mexican market,. Now, increasing tenant demand means that GSEO needs to increase the throughput and on-site blending capacity of one of those terminals. The company will add 340,000 bl of tank storage capacity, taking the total capacity across the two terminals to 865,000 bbl. It will increase the rail car unloading capacity, and increase the draught of the liquid cargo dock, allowing the dock to accommodate larger ships. Motus Energy, which operates the terminals on behalf of GSEO, will carry out and oversee the works, which will take place over the next year. Once the works are completed, GSEO’s total investment in the two terminals will total US$96 million.

The terminal currently has a capacity of 32,000 m3, or 400,000 gallons (1.51 million L) and handles chemicals, vegetable oils and hydrocarbons, as well as LPG. The phase II expansion works will increase the storage capacity to 1.4 million gallons. Additionally, the number of tanker truck loading positions will increase from five to 10. The works will be carried out by Okianus Terminals and the G5 Consortium, which comprises Norgas, Chilco Distribuidora de Gas y Energía, Vidagas – Empresas Gasco, Almagas and Montagas. Alejandro Martínez Villegas, president of the Colombian LPG Association (GASNOVA), says that the expansion works will guarantee Colombia’s national supply of LPG. The new capacity will allow monthly imports of up to 16,000 tonnes of LPG.

Where do you want to store next? Call us for storage of petroleum products and chemicals in Europe. Our experience is your guarantee.

The US$300 million (€266 million) wharf and dock bond funding for the project was approved in mid-2021. It is the largest bond issue approved by the Port of Plaquemines in more than 50 years. In total, the Nola Oil terminal will cost US$930 million.

GSEO TO SPEND US$35 MILLION ON US TERMINAL UPGRADES UK investment company VH Global Sustainable Energy Opportunities (GSEO) has committed US$35 million (€31 million) to expand one of its terminals in Texas, US. GSEO bought two terminals in Texas in May 2021, to supply less-polluting

Phone HQ: +46-31 53 45 00 Phone Operations: +46-31 764 96 00 Email: info@nordicstorage.se Website: www.nordicstorage.com

PAGE 15

International Operating Conference & Trade Show

2 0 2 2

June 13-15 Houston // TX

Make Plans Now!

TO ATTEND THE LIQUID TERMINAL INDUSTRY’S LARGEST EVENT! • Dynamic keynote speakers • In-depth conference sessions • World class networking • Largest industry trade show • Valuable training workshops

WWW. ILTA.O R G

TERMINAL NEWS THE AMERICAS

Mexico

MEXICO BANS TRANSLOADING AWAY FROM CUSTOMS POINTS Mexico’s customs agency has banned the transloading of imported fuel at sites not designated as standard customs points. Under Mexican customs law, imports are allowed at one of 49 government authorised customs points, although permits may be requested to import into other sites, known as a lugar distinto al autorizado (LDA). The new rules affect only LDAs. According to Argus Media, imported refined and blended products cannot be put directly into tank trucks or tankers, but must go through pipelines or storage, when at an LDA. Transloading has become common in Mexico, particularly inland, where tanks were still under construction. Mexico has limited numbers of fuel pipelines, most owned by state oil company Pemex. One lawyer, Diego Campa, told Argus that the new ruling will affect all companies that have not contracted fuel storage. The Mexican government has recently introduced a number of restrictions on private-sector fuel importers aimed at preventing imports without the participation of Pemex or CFE, another state company. With the Mexican government having previously attempted to increase competition for the two state energy companies, the current administration is introducing reforms to protect them. Eduardo Lopez, an independent oil market economist in Mexico City, recently looked at the implications of the reforms for importers in an article for Tank Storage Magazine, available of p36 of the 2021 North American issue. In addition, Argus Media reports that in November 2021 Mexico’s energy regulatory commission has closed a 690,000 bbl fuel storage terminal in Salinas Victoria, Nuevo Leon, that serves ExxonMobil and other brands, and a transloading terminal in Nuevo Leon used by Valero, apparently because it was using rail cars as storage units. It also closed a 650,000 bbl storage terminal in Puebla and Monterra Energy’s 2.2 million bbl fuel storage terminal near Tuxpan.

SAVE

VALVE OPERATION Electric actuators for all types of industrial valves Reliable and long-term service. AUMA offers a comprehensive portfolio. Q Customised solutions thanks to the modular scheme Q Corrosion protection with offshore certification Q Temperatures up to +75 C, down to –60 °C Q Integration into all conventional distributed control systems Q Worldwide certifications and vendor approvals Q Service worldwide

Discover our solutions for the oil and gas industry www.auma.com

PAGE 17 anzeige_halbe_Seite_tsm.indd 1

09.12.2021 15:44:04

TERMINAL NEWS MIDDLE EAST & AFRICA

TERMINAL NEWS: MIDDLE EAST & AFRICA Qatar

QATARENERGY SIGNS LNG SPAS WITH S&T AND GUANGDONG QatarEnergy’s LNG producing affiliates have signed long-term sale and purchase agreements (SPAs) with Guangdong Energy Group Natural Gas (GEG) and S&T International Natural Gas Trading Company (S&T). The first deal, between Ras Laffan Liquefied Natural Gas Company and GEG, is for the supply of 1 million tpa of LNG over a ten-year period beginning in 2024. Deliveries will be made to the Dapeng and Zhuhai LNG receiving terminals in China using Qatar’s fleet of conventional, Q-Flex and Q-Max LNG vessels. The second deal, between Qatar Liquified Gas Company and S&T, is for the supply of 1 million tpa of LNG over a 15-year period beginning in late 2022. The LNG will be delivered to the Tangshan LNG receiving terminal using Qatar’s fleet of conventional, Q-Flex and Q-Max LNG vessels.

Sakhumnotho says that the acquisition is a precursor to acquiring a larger stake in the holdings company. The investment firm has existing experience in the oil and gas sector, having already invested in Total Southern Africa. Combining this expertise with that of Refinex and SATT in processing petrochemical streams will allow the companies together to consolidate the entire petrochemical value chain, from supply to customer. As well as refining virgin oil, Refinex also sources waste oil to produce furnace fuels and solvents, recycling the resources and preventing them from being dumped and potentially polluting the environment. Refinex says that by enabling growth and expansion, through new investment, that it will be able to have a greater positive impact on the environment. As Sakhumnotho is wholly black-owned, the deal also provides Refinex and SATT with Black Economic Empowerment (BEE) credits, under the government scheme set up in South Africa to address the inequalities of Apartheid and support black businesses. A good score improves the change of obtaining government contracts.

UAE

South Africa

SAKHUMNOTHO INVESTS IN REFINEX AND SA TANK TERMINALS African investment company Sakhumnotho Group Holdings has bought an initial 26% stake in the Refinex and South African Tank Terminals (SATT) holding company. Refinex, founded as Energy Oil Oleochemicals in 1983, is one of the largest privately own petrochemicals companies in southern Africa. It offers bulk fuel oil supplies and together with SATT offers processing, manufacturing, blending, transport and storage of petrochemicals. SATT’s terminal in Roodekop Germiston has a capacity of 12 million L, with storage available for both Refinex and external customers. Product is currently moved in and out of the terminal by road tanker, but with a rail siding also onsite there is the potential to also distribute products by rail. PAGE 18

VTTI ACQUIRES IPTF IN FUJAIRAH Dutch-based terminal company VTTI has bought a 90% stake in IL&FS Prime Terminals FZC (IPTF) in Fujairah, UAE. The remaining 10% remains with the Fujairah government. The state-of-the-art terminal has 14 tanks with a total capacity of 333,484 m3 and handles a wide range of petroleum products. An expansion is underway which will take the terminal’s capacity to more than 780,000 m3. IL&FS says that selling the stake has allowed it to repay a debt of INR 7.58 billion (€90.6 million) to lenders First Abu Dhabi Bank, National Bank of Fujairah and State Bank of India. The company has been struggling with high debts and this is the second major asset sale. Fujairah, located outside the problematic Strait of Hormuz, is one of the world’s four key oil hubs. VTTI says that acquiring IPTF will allow it to significantly expand its long-established position in the port.

UAE

ADNOC, AD PORTS TO DEVELOP TA’ZIZ PORT AND LOGISTICS FACILITY Abu Dhabi National Oil Company Logistics and Services (ADNOC L&S) and AD Ports Group have signed an agreement to develop a new port and liquids terminal at TA’ZIZ chemicals production and industrial hub in Ruwais, UAE. The new terminal will form part of the feedstocks supply chain and store and load final products for export. It will have a tank farm with ten product tanks and a feedstock storage tank, as well as specialised utilities, control rooms, and product vapour handling systems. The port will have loading and unloading facilities, two liquid berths, both 640 m long, and a 320 m dry bulk berth. The partners will seek an international operator to join the joint venture. TA’ZIZ is expected to begin chemicals production in 2025. It comprises three zones. The industrial chemicals zone will host chemicals production, and currently has seven world-scale projects in the design phase. The light industrial zone will convert the outputs of the industrial chemicals zone into consumable products. The industrial services zone will host companies who provide services required by the other zones.

UAE

BROOGE APPOINTS SAHEB AS DEPUTY CEO UAE midstream company Brooge Energy has appointed Lina Saheb as deputy CEO. Saheb was formerly the company’s chief strategy officer. In her new role she will continue to lead the company’s strategic growth initiatives and will work closely with Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC. This will include looking into expanding into the renewable energy sector. Saheb joined Brooge Energy in 2010 and has extensive experience in the energy and infrastructure industries.

TERMINAL NEWS ASIA PACIFIC

TERMINAL NEWS: ASIA PACIFIC urban district officially established in 2017 with economic and development support from the Chinese government. Sinopec Xiong’an New Energy Company fulfils the Chinese government’s plan to create a national hydrogen firm, and will also play an important role in developing a comprehensive service platform for hydrogen in Xiong’an New Area, with the eventual aim of making the urban area carbon neutral.

China

SINOPEC SETS UP HYDROGEN SUBSIDIARY Chinese state oil and gas company Sinopec has established a new subsidiary to focus on hydrogen, including infrastructure, storage and transport. Sinopec Xiong’an New Energy Company will construct hydrogen energy infrastructure, operate hydrogen refuelling stations, store and transport hydrogen, construct and operate hydrogen pipelines, and engage in hydrogen energy technology research and development. It will also provide integrated energy services for oil, gas, hydrogen, and electric services. The subsidiary was registered in Xiong’an New Area in northeast China, a new

New Zealand

REFINING NZ CONFIRMS MARSDEN POINT TERMINAL CONVERSION Refining NZ has confirmed that its 135,000 bpd Marsden Point

refinery, will be converted into an import terminal. The plan was first announced in August 2020, partly in response to low margins due to refining overcapacity in the Asia Pacific region, after major maintenance had been postponed as a result of the COVID-19 pandemic. Refining NZ received a shareholder mandate in August 2021 for the plan and has now entered into longterm agreements with its three existing customers – BP, Mobil, and Z Energy – for the provision of import terminal services. The Refining NZ board has now made the final investment decision (FID) to proceed with the conversion, and agreed to change the company name to Channel Infrastructure from April 2022, when import terminal operations will begin. As well as the export terminal deals with existing customers, Refining NZ has also executed long-term deals to provide dedicated private storage, which it has

Control Fills & Eliminate Spills Protect Your Operation with Industry-leading Safe Fluid Transfer Solutions • Overrll Prevention

www.scully.com PAGE 20

• Liquid Detection Monitoring

identified as a ‘complementary growth opportunity’ to give customers product supply scale and flexibility. The company will invest an initial NZ$30 million (€18.5 million) for the necessary works to offer this, with capacity progressively made available from when the terminal begins operating to early 2023. The investment is expected to result in a revenue of NZ$50 million over ten years. Management is also consulting with customers to offer additional private storage and developing funding plans. It could invest a further NZ$25 million, which is expected to generate revenues of a further NZ$60 million over ten years.

China

Customised tank mixing solutions

EXXONMOBIL TO PROCEED WITH DAYAWAN PETROCHEMICAL SITE ExxonMobil has made the final investment decision (FID) to proceed with the multi-billion-dollar Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province in China. The company first signed a cooperation framework agreement with the Guangdong Provincial People’s Government to evaluate the construction of the chemical complex in September 2018. It will produce performance chemical products for the packaging, automotive, and agricultural industries, and consumer products for hygiene and personal care. ExxonMobil says that it will help to meet the expected demand growth for such products in China. The investment forms part of ExxonMobil’s plans to increase its global manufacturing capacity, as well as supporting China’s plans to become self-sufficient in petrochemicals, with diversified feedstock sources. The complex will make use of industry-leading technologies to improve energy efficiency. Construction on the greenfield site has already begun. Facilities will include a 1.6 million tpa flexible feed steam cracker, three performance polyethylene lines, and two differentiated performance polypropylene lines.

Essential advantages with Körting tank mixing systems: • • • • • • • •

low energy input no sealing problems low investment costs no unmixed dead zones wear-resistant operation no maintenance in the tank complete mixing of tank content optimisation with (CFD) Computational Fluid Dynamics

Several companies have already signed deals for facilities in the proposed park, pending the FID. In June 2021, Vopak won a contract to provide storage and services for a new 560,000 m3 liquid product terminal which will serve the new steam cracker. In August 2021, Oiltanking signed a strategic alliance with the Daya Bay Government in Huizhou, China, for the development of logistics and warehousing.

+49 511 2129-221

sales@koerting.de

koerting.de

INCIDENT REPORT

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry

14 December 2021

13 November 2021

25 October 2021

HAVERHILL, US

CILICAP, INDONESIA

ZAWIYA, LIBYA

Broco Energy

Pertamina

National Oil Corporation (NOC)

A fire at Broco Energy’s fuel terminal in Haverhill, Massachusetts was found to have been an accident. Eyewitnesses heard an explosion shortly before 12 noon local time. Fire crews took several hours to extinguish the blaze. There were no injuries. Investigators found that the operator filling a Broco Oil tanker was unable to turn off the oil flow, which spilled over onto the hot surface of the tanker’s exhaust and regeneration system, igniting. The blaze, which destroyed the tanker, spread to other vehicles. The cost of the damage has been estimated at US$500,000 (€442,000).

A large fire broke out at 7.20pm local time and destroyed a gasoline tank at Pertamina’s 270,000 bpd Cilicap refinery. It is the second at the refinery in 2021. The fire was eventually extinguished at 7.45am on 14 November 2021. No casualties were reported, although 80 local residents were evacuated from nearby Lomanis Village as a precaution. Pertamina says that it does not know the cause of the fire, but local media reports say that the tank was struck by lightning during a storm at the time. Investigations are ongoing.

Eight petroleum and crude oil storage tanks in the oil movements area and five storage tanks for base oils and chemical additives in a mineral oil mixing and filling plant were damaged during ‘skirmishes by armed groups’. An electrical transformer which is the source of power for the main station for the oil mixing and filling factory was also damaged, as were the ceilings of the halls of the manufacturing lines in the oil mixing and filling factory. Who the combatants were is unclear. Libya was in a state of civil war until October 2020, when the warring factions signed a permanent ceasefire, but unrest is still common.

PAGE 22

THE LATEST NEWS, DEVELOPMENTS AND MARKET TRENDS. DIRECT TO YOUR INBOX EVERY WEEK.

KATflow 170

ATEX clamp-on flowmeter Non-invasive ultrasonic flow measurement from the clamp-on specialists

+44 (0) 2476 714 111 • info@katronic.com • www.katronic.com

Established 2005. Trusted. Valued. Influential.

TANK TERMINAL UPDATE

TANK TERMINAL UPDATE Turkmenabat, Turkmenistan

Comment: The new capacity will allow monthly imports of up to 16,000 tons of LPG.

TURKMENNEBITONUMLERI Products: Refined oil products Capacity: 10,000 m3 Construction/Expansion/Acquisition: State enterprise Turkmennebitonumleri (Turkmen Oil Products) has completed construction work on six new oil products tanks with a total capacity of 10,000 m3 at its Zerger complex. The facility is fed by the Turkmenbashi Oil Processing Complex (TOPC), including the Turkmenbashi and Seydi refineries which between them have a capacity of 10 million tpa Comment: Turkmennebitonumleri also plans to construct a further eight tanks, each with a 100 m3 capacity.

Fujairah, UAE

VTTI Products: Petroleum products

Products: Biofuels Capacity: 300,000 m3 Construction/Expansion/Acquisition: Stanlow Terminals has announced a three-year plan to develop the Stanlow Manufacturing Complex and Tranmere Terminal in the Port of Liverpool, which will be the UK’s largest biofuels storage hub. Comment: The facility will allow customers to store, blend and distribute biofuels suitable as drop-in replacement transport fuels for the road, aviation and marine sectors.

Cartagena, Colombia

OKIANUS TERMINALS

Construction/Expansion/Acquisition: VTTI has bought a 90% stake in IL&FS Prime Terminals FZC (IPTF). The remaining 10% remains with the Fujairah government. An expansion is underway which will take the terminal’s capacity to more than 780,000 m3. Comment: IL&FS says that selling the stake has allowed it to repay a debt of INR 7.58 billion (€90.6 million) to lenders.

Santos, Brazil

PETROBRAS Products: Refined oil products Investment: BRL 558.2 million (€86.98 million) Construction/Expansion/Acquisition: Petrobras bought the lease for the STS08A area in the Port of Santos, which covers 297,349 m², from Brazil’s National Waterway Transport Agency (ANTAQ) for a contractual term of 25 years. Petrobras paid BRL 558.2 million for the lease and expects to invest around BRL 120 million in developing the terminal. Comment: ANTAQ says that the global gross revenue of the contract will reach BRL 7.207 billion, with expected movement of 140 million tonnes.

Products: LPG Capacity: 1.4 million gallons (5.3 million L) Construction/Expansion/Acquisition: Colombia’s Ministry of Mines and Energy has begun expansion works at Okianus Terminals for imports of LPG. The phase II expansion works will increase the storage capacity from 400,000 to 1.4 million gallons. Additionally, the number of tanker truck loading positions will increase from five to 10.

PAGE 24

Comment: ANTAQ says that the global gross revenue of the contract will reach BRL 145 million with expected movement of 1.6 million tonnes.

Capacity: 333,484 m3

Liverpool, UK

STANLOW TERMINALS

Imbitub, which covers 7,455 m², from Brazil’s National Waterway Transport Agency (ANTAQ) for a contractual term of 10 years. Fertisanta will invest BRL 25 million in developing the terminal.

Imbitub, Brazil

FERTILIZANTES SANTA CATARINA (FERTISANTA) Products: Fertilisers Investment: BRL 200,000 (€30,840) Construction/Expansion/Acquisition: Brazilian fertiliser company Fertilizantes Santa Catarina (Fertisanta) bought the lease for the IMB05 area in the Port of

Ruwais, UAE

ADNOC, AD PORTS Products: Chemical feedstocks and products Construction/Expansion/Acquisition: Abu Dhabi National Oil Company Logistics and Services (ADNOC L&S) and AD Ports Group will develop a new port and liquids terminal at TA’ZIZ chemicals production and industrial hub. It will have a tank farm with ten product tanks and a feedstock storage tank. The port will have loading and unloading facilities, two liquid berths, both 640 m long, and a 320 m dry bulk berth. Comment: TA’ZIZ is expected to begin chemicals production in 2025.

Various, US

TRANSMONTAIGNE Products: Renewable fuels Construction/Expansion/Acquisition: TransMontaigne Partners has completed its acquisition of SeaPort Financing. It now has a 100% membership interest in SeaPort Sound Terminal, which owns a liquid products terminal in Tacoma, a 51% membership interest in SeaPort Midstream Partners, which owns liquid products terminals in Seattle and Portland, and a 30% membership interest in Olympic Pipeline Company, which owns the Olympic Pipeline between Blaine and Portland. Comment: SeaPort Financing was a portfolio company of ArcLight Energy Partners Fund VI.

TANK TERMINAL UPDATE

Various, South Africa

SAKHUMNOTHO Products: Fuel oil, waste oil, petrochemicals Capacity: 12 million L

Rotterdam, the Netherlands

Various, Japan

GES

KKR

Products: Low carbon fuels

Products: Chemicals

Construction/Expansion/Acquisition: Energy transition focused Global Energy Storage (GES) has bought an interest in Gunvor Group’s Stargate Terminal. GES plans to develop more than 20 hectares including a new multi-purpose seagoing jetty, storage for renewable fuels, gas storage, gas to chemicals production, green and blue hydrogen, and hydrogen carriers such as ammonia.

Capacity: >300,000 m3

Comment: Gunvor will be a longterm partner of GES to support the development of environmentally responsible projects.

Construction/Expansion/Acquisition: KKR has bought Central Tank Terminal (CTT) from an affiliate of Macquarie Infrastructure and Real Assets (MIRA). CTT has more than 300,000 m3 of storage capacity split between seven terminals located near strategic hubs and ports near Tokyo Bay, Osaka Bay, Nagoya and Kitakyushu.

Construction/Expansion/Acquisition: African investment company Sakhumnotho Group Holdings has bought an initial 26% stake in the Refinex and South African Tank Terminals (SATT) holding company. Refinex offers bulk fuel oil supplies, and together with SATT offers processing, manufacturing, blending, transport and storage of petrochemicals. SATT’s terminal in Roodekop Germiston has storage available for both Refinex and external customers. Comment: As Sakhumnotho is wholly black-owned, the deal provides Refinex and SATT with Black Economic Empowerment (BEE) credits, under the government scheme set up in South Africa to address the inequalities of Apartheid and support black businesses.

Comment: The transaction is expected to be completed by Q4 2021.

Good Practice Guidance for Electrical, Control and Cyber Security in Industrial Engineering • Practical guidance for everyday and irregular situations and tasks

• Readily accessible for all in the industry – wherever they are, whatever time they have

• Verified and developed from contributions by the industry, for the industry

• FREE task and procedure checklists • E-learning for professional development

Management of ageing electrical assets Publication 227 Edition 1

To purchase or for more information, please visit www.eemua.org

PAGE 25

SHORTLIST TERMINAL OPTIMISATION > > > > > > > > > >

Actemium Terminal Management System, Actemium TAS.net and RTG, Dearman Systems DKI Digital Twin, Diamond Key International TankMaster Mobile Inventory Management Software, Emerson Automation Solutions Digital Asset Care Platform, Falcker Innovations Enraf Inventory System, Honeywell Logistics Simulation Analysis Services, KBR Smart data capture solution, Smartflowapps Early Warning System, TankTerminalTraining Vessel Clearing Tool, Tankterminals.com

ENVIRONMENTAL PERFORMANCE > > > > > > > > > >

Vent-Less’ Breather Vent Test Bench, Assentech Sales Triple D mobile RTO, Clean Technology Systems Benelux Activated carbon filters, Deutsche Transalpine Oelleitung Floating Roof Tank Spill Prevention System, Drexelbrook FAB Valve Series, Elmac Technologies The Rosemount LNG Tank Gauging System, Emerson Automation Solutions Primedeck, Environmental Protection Technology for Storage Tanks Dry and Wet Scrubber Systems, Ergil Group GST Membrane Full Containment Tank, Gaztransport & Technigaz (GTT) 10Q Paint Robot, Qlayers

INNOVATIVE TECHNOLOGY > > > > > > > > > >

Remote Operated PLEM (ROP), ATEC CSR Alpha 1 SB, Confined Space Robotics HawkEye365, Hawk Measurement Systems FloormapX, Eddyfi Technologies Mascoat Industrial-DTI Thermal Insulating Coating, Mascoat Satellite monitoring of oil storage facilities, OilX Primus Line, Rädlinger Primus Line Scout 137 Drone System, ScoutDI Siemens Digital Worker, Siemens NEON Vibration Sensor, TWTG

EMERGING TECHNOLOGY > > > > > > > > > >

Opus X4 NDT Aerial Robotic System, Apellix Omega CTAS, Diamond Key International Surface Topology Air-gap Reluctance Sensors (STARS), Eddyfi Technologies TankMaster Mobile Inventory Management Software, Emerson Automation Solutions The Kpler Terminal, Kpler Qronoport, Port+ 10Q paint robot, Qlayers Electrical tomography, Rocsole Load2Day, Toptech Systems Voliro T, Voliro

Winners will be announced at the Global Tank Storage Awards Ceremony on 8 March 2022 in Rotterdam, the Netherlands. View the full list of winners in the April/May 2022 edition of Tank Storage Magazine and at www.tankstoragemag.com/awards

SAFETY TECHNOLOGY > > > > > > > > > >

Remote Operated PLEM (ROP), ATEC FAB Valve Series, Elmac Technologies Remote proof-testing capability of Emerson’s Rosemount 5900 Radar Level Gauge, Emerson Automation Solutions The Lombrico Fuel Tank Cleaner (FTC), Gerotto Federico 10Q paint robot, Qlayers Tank cleaning robots, Re-Gen Robotics Scully Overfill, Ground & Vehicle Identification Control Systems Technology, Scully Signal Company Terra UT Drone, Terra Inspectioneering Vivid Safety Badge, TWTG Magnetic crawler robots for blasting and washing, VertiDrive

SAFETY EXCELLENCE > > > >

Indian Oiltanking, India Vesta Terminal Antwerp, Belgium Independent Oil Terminal (IOT), Malaysia Koole Terminals, The Netherlands

TERMINAL OF THE FUTURE > > > > >

San Fernando de Henares – Torrejón de Ardoz terminal, Exolum, Madrid Wagram Terminal, Rubis Terminal, France Vesta Terminal Flushing, The Netherlands Navigator Terminals North Tees, UK Vopak Moda Houston, USA

TERMINAL INNOVATION > Fujairah Oil Terminal, UAE > Rubis Terminal, The Netherlands > Mobil Yarraville Terminal, Australia

PORT OF THE FUTURE > > > >

North Sea Port Port of Antwerp Port of Rotterdam Port of Amsterdam

RISING STAR > > > > > > > > > >

Caitlin Geisinger, Business Development Manager, Burns & McDonnell Engineering Nicole Hameister, Terminal Manager, Canal Terminal Company Ravi Bhatiani, Executive Director, FETSA Paul Ramsey, Project Manager, Oiltanking Hervé Yimgna Mengouo, Construction Project Manager, Petroleum Certification Consulting Josefien Groot, CEO, Qlayers Marvin Lehel, Business Development Manager, Siemens Jelle Swanenberg, COO, Smartflow Kevin Van Hees, Operations Manager, Vesta Terminal Antwerp Kartik Gala, Founder and CEO, Woodfield Systems

OUTSTANDING ACHIEVEMENT > > > > > > > > > >

Rıza Altunergil, VP & Sales Marketing, Aager Luc Bonami, CEO, Anno Chemicals Ihsan Akgun, CEO, Ateco Ali Alkasah, Business Development Manager, Black Gold Automation Libya AnnCharlott Enberg, Global Functional Safety Manager, Emerson Daiva Angeldorff, Vice President of Operations, Nordic Storage François Cazor, Co-Founder & CEO, Kpler Fintan Duffy, Managing Director, Re-Gen Robotics Bert van Dam, Global Business Manager Tank Terminals, Siemens Jelle Bakelants, HSE Manager, Vesta Terminal Antwerp

Sponsored by

Photo: ©shutterstock.com/urfin

ENERGY STORAGE SOLUTIONS WHAT WE ARE PROUD OF

WHERE WE ARE

OUR CUSTOMERS

YOUR OPPORTUNITIES

STORAG ETZEL GmbH are the biggest independent provider of cavern storage capacity in Northwest Europe. By operating the Etzel Cavern Storage, we make a significant contribution to energy supply and gas grid stability in Germany and Europe.

At Etzel, East Frisia, in Northwest Germany we are constructing, operating and leasing caverns for the purpose of bulk storage of crude oil and natural gas since 1971. The cavern facility is situated on the North German energy hub near Wilhelmshaven, with a connection to the deep water port.

Are well known energy trading companies as well as Europeans stockpiling organizations. A major part of the German oil stockpiling obligation is stored in our caverns here at Etzel site.

By mid-2022 STORAG ETZEL will make some 5 million m³ of storage volume available for mid and long-term crude oil storage. We offer attractive commercial conditions for our customers, and our caverns that are connected to the nearby oil port facilitate high flexibility in terms of storage volumes and turnovers, even on short notice.

For non-binding offers and our fact sheet, please contact: Customers-contracts@storag-etzel.de

STE-Imageanzeige-Bildwelten_RZ2.indd 3

www.storag-etzel.de/en 04.01.22 15:46

TERMINAL OUTLOOK 2022

THE STORAGE OUTLOOK Senior executives from nine storage terminals reflect on 2021 and consider what the future might hold is unique and located close to the customer’s operations. We are working closely with all our customers to see how their business can be further optimised and strengthened in a sustainable way. The physical proximity to markets has turned out to be increasingly important in reducing the impact of climate change. THE LOGISTICS OF CLIMATE CHANGE

Alkion Terminals

RUTGER VAN THIEL CEO, Alkion Terminals 2021 was another successful year for the Alkion Group in a challenging and changing environment. The pandemic continued to demand our vigilance, but we continued to show solid performance in terms of safety, sustainability and financially. Formed just five years ago the Alkion Group has shown itself again to be a resilient business. PANDEMIC EFFECTS Alkion’s nine terminals are located across five major European economies and integrated into numerous local, regional and national supply chains and markets supplied by our customers. As such, we form an essential link in the global network that enables modern life – a network that cannot be interrupted. I am therefore proud of the way in which our people continue to operate smoothly throughout the pandemic. To some extent COVID-19 has become part of life at Alkion. Meanwhile, the economy is rebounding and presenting supply chains with new challenges. Within this context, I think the pandemic is acting as an accelerator and making visible a number of previously existing trends. Two thirds of the products stored at Alkion are chemicals and the customers continue to look through the crisis to secure and strengthen the robustness of their supply chains. Each Alkion terminal

The changing climate has gained massive public awareness and requires mankind to rethink the supply of energy commodities and base materials. Technology is an important enabler in fighting climate change. However, logistics solutions are equally important and will require huge investments in infrastructure over time. I strongly believe storage and transportation of liquids and gases will continue to play a critical role. In the transition to a low carbon environment I expect a majority of the pool of fossil fuels to be converted by turning a black molecule into a sustainable green molecule. This is within reach and more competitive than substituting carbon molecules with new energy sources or carriers. It is noticeable that Southern Europe is catching up with the energy transition. For example, Italy is expected to introduce the blending of ethanol in the gasoline pool as of next year. Alkion aims and invests to offer the capability to customers to source, produce and distribute a growing range of renewable fuels and chemicals. Biofuels, green gases, bio-methanol, e-fuels, SAF and other products require tailored logistics solutions. This means smaller tanks, segregated systems, heating and blending capabilities. Above all, it requires operational flexibility. In addition to chemicals and fuels we also serve product such as lubricants and bitumen that are playing an important role in the energy transition. Ultimately, even electrical vehicles need a road to drive on, preferably an advanced one with less friction and noise. I foresee that the European tank terminal industry will benefit not only from decarbonisation, but also from the positive GDP trend in chemicals. This will probably involve the onshoring of

some industries and the necessity to run secure and seamless supply chains to avoid potential disruptions. LOOKING FORWARD WITH CONFIDENCE Our agenda for 2022 continues to be about growth and environmental, social, and corporate governance (ESG) principles. The energy transition is central to both of these themes. We continue to pursue our growth strategy and are executing a pipeline of carbon light projects for which we obtained a €100 million ESG-linked financing. Longer term, we see substantial growth through optionality across our portfolio. We still have ambitions to expand our presence in Europe and we pursue dialogues from which the right opportunities might arise. To these ends we took a number of key steps in 2021. In Le Havre we closed the Alkion Sotrasol terminal and transferred its business to a greenfield tank pit at our second and larger Le Havre terminal. We have decided to add even more capacity in another new tank pit. In Amsterdam and Vado Ligure, Italy, investments are geared for the energy transition, while in Iberia the focus is on niche segments. Several projects are underway that will reestablish the unique chemical hub position of our terminal in Marseille. At Alkion we offer tailored solutions that respond to individual customer requests and therefore we will continue to also invest in new and upgraded equipment at each terminal. REAL ESG PROGRESS Our ESG-strategy is based on three pillars: foster wellness, empower people and reduce adverse climate impact. We make determined efforts to reduce our own ecological footprint through tangible climate actions. We measure and record our CO 2 footprint and we are taking meaningful steps towards CO 2 reduction. For instance, we have installed solar panels at our terminals in Italy and Portugal, and we are doing the same at other sites. All of this contributed to the Alkion Group being granted a CO 2 -perfomance ladder certificate by SGS in September 2021. We are the first company in the industry

PAGE 29

TERMINAL OUTLOOK 2022 to be awarded this certification. Core to this CO 2 management system is Alkion’s commitment by 2025 to emit 20% less CO 2 than in 2019. LISTENING TO OUR CUSTOMERS At Alkion we are determined to meet the evolving and future needs of customers. We are therefore focussed on providing forward thinking storage solutions for chemicals, renewables and synthetic products, along with new logistics services such as ISO-container storage and small-scale LNG. After thirty years in this business I am more convinced than ever that customers want to be in business with a competent person and a loyal partner. Somebody who understands the fundamentals of their business and who takes responsibility for the lifeblood of their business. Meaningful responsibility starts with listening and acting up on it. By listening to the needs of our customers, in this way, we act as an essential link in their supply chains. At Alkion, we all believe that listening is everything.

Colonial Terminals

RYAN CHANDLER

terminals between Savannah, Georgia and Wilmington, North Carolina supported by the finest group of people with whom anyone could hope to work. Colonial handles bulk products that support everything from energy needs to soft drinks and pie crusts. 2021 IN REVIEW Reflecting on the pandemic’s earliest days in 2020 as we prepared for potentially wide-ranging impacts, I doubt any of us at Colonial foresaw the solid growth we would realise across our portfolio in 2021. Despite numerous and continuing challenges to the intermodal supply chain, Colonial’s phenomenally dedicated team managed to support increased existing liquid throughput volumes while also completing several projects to commence new business. COVID-19 Looking back, the single most important decision we made was to communicate thoughtfully how and why we were prioritising the health, safety, and morale of our workforce. With tremendously polarising forces at play in the media and public space, we focused solely on how the pandemic was impacting our Colonial family and stayed close to the facts of these impacts and how much we care about the wellbeing of our team members. Importantly, we never allowed the pandemic to slow our efforts to recruit new talent to support the growth we were experiencing. Although many had hoped 2022 would have COVID-19 firmly positioned in the rear-view mirror, it seems nature has different plans for our industry, and Colonial is positioning itself to respond to whatever new challenge the virus presents. We have a new appreciation for many things we had previously taken for granted, including the stability of the supply chain, and we are blessed with a team that has emerged stronger for having endured showing up to work every day through the pandemic as an essential component of international commerce. The resilience our employees demonstrated and continue to demonstrate will serve us well as we turn our attention more fully to what we will create for Colonial over the next 100 years.

President, Colonial Terminals What better time to celebrate the 100 th anniversary of your founding than in the middle of a global pandemic! But celebrate we did, and with great gratitude for the foundation that was laid before us as a fourth generation-led family company. Colonial Terminals operates four liquid and dry bulk

PAGE 30

ENERGY TRANSITION The energy transition’s impact on our organisation’s facilities began in 2012 as gasoline blending economics that had favoured the Atlantic Coast of the US were overwhelmed by the low price of refined products coming out of the US Gulf Coast. As a result, light

oil customers’ need for large tanks and large storage footprints was dramatically reduced. Today, it would be hard to imagine building a tank larger than 50,000 bbl (around 8,000 m3) in the markets we serve. Renewables’ growth has helped offset the decline in demand for this tankage. We expect combined light oil and renewables demand to remain a meaningful but shrinking part of our portfolio over at least the next 25 years. CHALLENGES AHEAD Colonial views our opportunities outweighing the challenges by far, but these challenges cannot be ignored. Clearly, the uncertainty surrounding the evolution of COVID-19 variants remains top of mind, but the energy applied here has now become a baseline part of how we operate. 2022 will bring additional challenges of ensuring labour force retention and development, managing inflationary pressures, remaining nimble in the face of evolving customer service requirements, and proactively responding to the evolving environmental, social and corporate governance (ESG) movement. It may go without saying, but COVID-19 exposed a very underappreciated element of supply chain risk: multiple and significant interdependencies. While it would be impossible to achieve perfect control over any significant supply chain, producers and manufacturers will seek to mitigate their exposure to disruption using a variety of strategies from integration to acquisition to redundancy. It is only logical that terminal operators must consider the numerous interdependencies acting upon and affecting their ability to efficiently serve their customers as well. 2022 OUTLOOK 2022 will be a year of reinforcing the value we offer to our current customers, the core of which is nimble customer service, and opportunistically expanding our offerings to support new and evolving supply chain requirements in the bulk storage and handling industry. We expect our profitability to grow modestly, while our investments will grow quite significantly in the areas of opportunistic acquisitions, improving supply chain visibility for our customers, and increasing efficiencies and safety generated through automation. It is these investments and our commitment to the highest levels of customer service and care for our employees that will help us weather inevitable downcycles in the business landscape and help ensure the next 100 years are even brighter than the last.

TERMINAL OUTLOOK 2022 quick thinking and innovative solutions to prevent interruptions in service. With safety as its first priority, IMTT empowered its employees to continue to provide essential services and ensure the supply of critical products for people across the US throughout the pandemic. The company and its employees across its 19 North American terminals continue to work safely, identifying and meeting challenges as they arise.

International-Matex Tank Terminals

CARLIN CONNER CEO, International-Matex Tank Terminals Over the last 80 years, InternationalMatex Tank Terminals, a liquid bulk storage supplier founded as a single terminal in 1939, has become one of the leading storage companies in North America. IMTT’s decades of experience and international partnerships brought the company to where it is today, and its strategic investments are shaping its future as the company looks to lead the industry through the evolution of the energy and chemicals markets. IMTT has a long history of providing storage and logistical services for products from refined petroleum to renewable fuels, vegetable oils, and complex chemicals used to produce products from dish soap to foam insulation. Now, the company is building on its legacy business by embarking on new projects and becoming a leader in the renewable energy storage space as well. OVERCOMING OBSTACLES That’s not to say the past few years have been without their challenges: Since 2020, IMTT, like all companies, has battled the COVID-19 pandemic. The company has worked tirelessly to meet customers’ needs as commodities markets have fluctuated in ways not seen for decades – all while keeping employees safe as guidelines and conditions changed across multiple sites. The company’s role as a critical link in the supply chain of materials that are necessary for everyday life for millions of Americans took on a new importance during the pandemic and necessitated

As the pandemic continued on across the US and the world, IMTT’s Louisiana terminals found themselves squarely in the path of Hurricane Ida, a powerful Category 4 storm that made landfall in late August 2021. The storm ripped along the Mississippi River, near IMTT terminals in Avondale, St Rose, Geismar and other locations – wreaking havoc and knocking out power to over a million residents. The powerful winds blew off insulation and knocked down trees, but IMTT’s Louisiana terminals avoided major damage and operational delays thanks to robust emergency operations planning and execution. As the worst seemed over in South Louisiana, leaving some communities devastated and many more bruised in the wake of strong winds and storm surge, Ida continued to rage. The storm curved across the country, ultimately causing heavy flooding across the northeast US, with another IMTT terminal in its sights in Bayonne, New Jersey. Through it all, IMTT avoided major damage and operational delays, continuing service as the crisis continued for many at home in Louisiana and across the country. Many of the communities where IMTT terminals are located continue to deal with devastation from these events, and the company is working to ensure its employees and neighbors build their communities back better than before. BUILDING THE FUTURE While we all recover from the events of the past years together, IMTT is boldly pursuing a future founded on its legacy business and expanding to create more options for customers as the market for renewable fuels continues to grow. These past few years haven’t been easy for anyone. While we continue to work to meet the needs of our customers safely during these trying times, we’re looking to the future to ensure our company delivers innovative solutions for the evolving energy needs of our customers.’

company is starting at home, installing solar panels and low-energy lighting to reduce its energy consumption and environmental footprint. But IMTT is also thinking bigger, and working lead the transition by providing options for alternative fuels. For IMTT, that has translated into $400 million invested in infrastructure to handle renewable fuels and associated feedstocks. One example of IMTT’s partnering for growth is a project the company is constructing at its Avondale, LA facility in cooperation with Fuji Vegetable Oil to store feedstocks for its refined vegetable oil processing facility. Another is a set of pipelines the company is constructing to Diamond Green Diesel near IMTT’s St Rose terminal that will transport feedstock as well as finished renewable diesel fuel. IMTT recently announced another project in partnership with Renewable Energy Group at its Geismar, LA facility to handle and store feedstock and finished product in six new tanks. The investment will also fund new pipelines and infrastructure. IMTT’s leadership goes beyond servicing existing customers. Its investments are a key part of the energy transition, connecting alternative fuels producers and users with lower-carbon options and providing the consistency necessary for the market to grow. There’s already a market for these products. And IMTT could help solidify – and grow – that market, as well as position the company’s Louisiana terminals to service new customers across the US. By 2023, IMTT will be connected to nearly 30% of the nation’s renewable diesel production capacity. While many companies are challenging and resisting the energy transition, IMTT is investing in building the future – offering new options to shippers, fuel producers and more that ultimately reduce the carbon footprint of everyday Americans. And as IMTT emerges as a leader in the alternative fuels space, the company is setting an example for the industry and the world. It won’t be easy, but if the last few years – filled with extreme weather, a pandemic and more – have shown us anything, it’s that IMTT is up for the challenge.

As the energy landscape changes, IMTT has an edge: The company operates 13 terminals with marine access and is ready to offer the low-carbon fuel solutions the market is demanding. The

PAGE 31

TERMINAL OUTLOOK 2022

LBC Tank Terminals

DEWIEN JAGMOHAN Commercial and business development director Europe

ERIK KLEINE General manager Europe COVID-19 AND ANTICIPATING ON FURTHER CHALLENGES In the chemical supply chains, monthly throughputs are usually relatively stable and predictable. The COVID-19 pandemic, however, caused longterm unpredictability. This in turn led to volatility, causing throughputs to vary significantly each month. To minimise possible negative impact for our customers and, at the same time, allow them to benefit from prompt opportunities, we have focussed on increasing the flexibility of our workforce and infrastructure by: 1. mitigating the risk of temporarily losing key personnel due to COVID-19 by having back-ups from other shifts and/or departments and even nearby terminals; 2. applying strict COVID-19 rules for our workforce and third parties throughout our global terminal network to ensure operational continuity; 3. having a clear focus on turnaround times to be able to handle surging volumes in case of sudden spikes in demand; and 4. increasing customer communication to be able to react immediately in case prompt opportunities are coming up. Going forward, the focus will be on further improving this flexibility so that we can continue to meet and exceed our customers’ expectations. LOOKING BACK ON 2021 IN THE INDUSTRY In the first half of the year, it became obvious that the lockdowns had a significant impact on throughput volumes, largely driven by a fall in demand of goods and services globally. The second half of the year was the period of recovery and growth, resulting in high throughput numbers, especially in intermediate chemicals. We have proven that agility is our strength. The impact of the COVID-19 restrictions on terminal operations and on our colleagues, of which many

PAGE 32

were forced to work from home, were limited, as we were able to respond quickly to changing circumstances. In addition, we strengthened and improved clear communication lines with our customers. In a final instance, we have seen the importance of everyone’s contribution to the day-to-day operations. It does not matter if you are working in operations, customer service or dispatch: in case someone gets sick or has to stay home and such a department gets understaffed as a result, this directly impacts the maximum number of trucks that the terminal can handle. We are proud and thankful that all colleagues have respected the imposed additional measurements to keep everybody safe and that they stepped forward when required to keep our terminal operations running at the level our customers are used to. OUTLOOK 2022 FOR LBC AND THE INDUSTRY Overall, the effect of COVID-19 resulted in the acceleration of two strategic pillars. First, we want to connect further with our customers and other stakeholders by improving digitalisation. Last year, we initiated the ‘Terminal of the Future’ project that will allow our customers and other stakeholders to connect more directly to our terminal operations. This will result in better planning and more live data for our stakeholders, creating a more efficient supply chain. This in turn will also lead to enhanced safety, which will always remain the absolute top priority in our industry. Second, there should be a clear focus on sustainability. Last year, we published our first sustainability report that contains the baseline for our sustainability ambitions. In April 2021,

we signed the letter of commitment and joined the United Nations Global Compact (UNGC), supporting the UNGC Ten Principles in the fields of human rights, labour, environment, and anticorruption. It is our ambition to excel in the implementation of sustainable production practices and to become a carbon neutral company before 2050. In addition, we achieved the EcoVadis gold medal while formalising our sustainability roadmap for the coming years. In the end, it is everyone’s responsibility, within the organisation but also within the industry, to play an active role in the energy transition along the entire supply chain. Together, we must show the sustained leadership to achieve the United Nation’s Sustainable Development Goals. Last but certainly not least, the impact of COVID-19 will remain significant throughout 2022. Though online meetings and conferences have shown to be fruitful, the missing element of personal interaction with stakeholders is heavily felt. ENERGY TRANSITION Our sustainability efforts are recognised by our stakeholders as a true differentiator. Towards carbon neutrality is the way to go and, in line with the worldwide energy transition, we all have a serious responsibility to achieve this. As an example, we recently switched to wind power at our terminal in Rotterdam. Similar announcements will follow soon, also for the other terminals in our network. We are also focussing on asset and infrastructure improvement programs, using state-of-the-art technology to reduce our carbon footprint as well

TERMINAL OUTLOOK 2022 as storing new products related to the energy transition. Focussing on chemical storage, we have (many new) tanks in various sizes and specs that allow storage for products of the circular economy (e.g. pyrolysis oils) and liquid organic hydrogen carriers (LOHCs). Many of our terminals can be accessed via all modalities (vessel/ barge, (block) train, truck and pipeline), allowing our customers to do trials with these new products, which will eventually lead to structural successful business opportunities. We are preparing for these new partnerships.

In a final instance, the low interest rates have resulted in new investors entering the storage market looking for higher returns. With new capital available, new capacity is and will be added in the near future resulting in a more competitive market. Therefore, it is important to differentiate ourselves from competitors. Operating safely and being a driver in sustainability and digitalisation are therefore key.

CHALLENGES FOR TANK TERMINALS

In that respect, diversity and inclusion is also key and a focus in our industry. As our CEO Frank Erkelens recently stated: ‘The team is only as strong as the accumulation of the differences that you have within it.’ Going forward, one of the largest challenges for tank terminals will be to determine for which products they want to provide the storage and handling services in the energy transition future. By when and where do tank terminals need to provide (capital intensive) hydrogen storage? Which LOHCs will be the winners of the future? What will be the final product characteristics? A low flash hydrogen carrier has different tank requirements to a high flash hydrogen carrier. It will be key to work together with customers and prospects to ensure the correct infrastructure is available at the right time. Building up partnerships with customers that are producers will be crucial, resulting in new business models. Strong relationships with technology providers, ports, industry associations and nearby communities are needed to realise growth projects resulting from new business models and to drive innovation in line with the United Nations Sustainable Development Goals.

From a product flow perspective, the global supply chain disruptions seem to have been further exacerbated in 2021. On top of COVID, we had the extreme cold in Texas and Ever Given grounding – both causing interruptions with direct and indirect impact on the petrochemical supply chain. On the back of all of this, one key takeaway has been that our portfolio has proven extremely resilient. Our people have worked tirelessly through the challenges and continued to deliver for our customers, and our assets have performed well. 2021 SUMMARY

Traditionally, our industry is not known to be an innovator when it comes to new technology. As such, the introduction of new technology will be a gradual process. To implement new technology in newbuild tanks is relatively easy, but it is complex to introduce this to existing infrastructure. We have recently invested in many new tanks, but some parts of our terminals, such as many other tank terminals, still consist of ageing infrastructure which will have to be upgraded as part of our asset and infrastructure improvement programs. It is important that – throughout these technology changes – the workforce remains engaged. Roles and responsibilities must be clear, especially when they are changing during a digital transformation.

an integrated part of how we operate.

Odfjell

ADRIAN LENNING Global head of terminals, Odfjell Odfjell Terminals owns five tank terminals at strategic locations in USA, Korea, Belgium and China: Houston, Charleston, Ulsan, Antwerp and Nangang. In total, these terminals offer a total 1.3. million m3 of storage. Odfjell Terminals is also part of a network with 11 terminals in South America, partly owned by related parties. Odfjell Terminals is part of the Odfjell Group, one of the world’s largest deep-sea chemical tanker operators, has its headquarters in Bergen, Norway, and is headed by Adrian Lenning. COVID-19 As for everyone, COVID-19 has continued to be a challenge in 2021. Building on the experience gained during the first year of the pandemic, we have been quite successful in preventing COVID-19 from interfering with operations. We have had some more COVID cases within our organisation this year, especially in the US, although mainly with employees being infected outside of the workplace. We have procedures in place that have proven to work well. What used to be business continuity plans have become

2021 got off to a tough start, with a fire at our Houston terminal in December 2020 and the Texas freeze in February of 2021. Looking back at these events and how our people on the ground responded, it makes me truly proud to be part of this organisation. The fire incident is a reminder of how critical safety, and investments in training, are to our business. The quick and effective actions by the Houston organisation ensured that no one was injured, that products were kept safe, and that the terminal was efficiently brought back to normal operations. Their handling of the situation was nothing short of impressive. When the freeze shut down most of the Texas petrochemical complex a few weeks later, that same organisation ensured that Odfjell was one of the first terminals in the Houston ship channel to resume regular operations. The freeze has had major and prolonged effects in terms of product flows and market dynamics, well beyond the US market. During the first half of the year, inventory levels have been low and US production has largely gone to serve the domestic market. During the back half of the year, we are seeing signs of normalisation and we see US exports are picking up again and expect this to continue as we enter 2022. Despite the challenges, our terminal business overall has performed very well. We are pleased that we continue to maintain and improve our safety performance, and from a financial perspective, that we are in line with or above target in most regions. 2021 has also been a year for Odfjell to evaluate and reaffirm its commitment to the liquid bulk storage sector. After restructuring our terminal organisation and portfolio, we are now in a position to look ahead. We already see the benefits of the new organisation in the form of closer cooperation with the broader Odfjell group, more efficient governance,

PAGE 33

TERMINAL OUTLOOK 2022 less overhead and more empowered local management teams. The current platform establishes a healthy foundation for future growth. This will involve Odfjell continuing to invest in the development and grow our current terminals, but also to consider opportunities outside of our existing footprint. In 2021, we started the construction of a new 35,000 m3 tank bay at our Antwerp terminal, which will be commissioned in 2022. At our Houston terminal, we have taken the final investment decision on a 32,000 m3 expansion, on which construction will commence in 2022. We’re also investing heavily in automation and digitalisation at our terminals. This will allow us to make more data-driven decisions and realise operational improvements. We’ll reduce manual processes, become more efficient, increase earnings and better serve our customers. ODFJELL’S PREPARATIONS IN THE ENERGY TRANSITION Odfjell received the EcoVadis Gold sustainability rating in 2021 and was ranked first among its industry peers by Sustainalytics. We were also awarded the 2021 GREEN4SEA Tanker Operator Award, which recognises companies that demonstrate ‘outstanding performance’ in green and sustainable shipping. We’re using everything we’ve learned on the shipping side to bring terminals to the same level of maturity.

For Odfjell, 2022 will be dedicated to carrying out the initiatives that we have in place at our terminals in terms of digitalisation, expansion, and continuous operational improvements. We will also launch more targeted ESG initiatives for Odfjell Terminals and continue laying the foundations for future growth. GROWTH AND INVESTMENTS Odfjell has a stated objective to grow its terminal business from where we are today. We have a quite unique platform for doing so, building on a portfolio of strong assets, more than half a century of track record and know-how, and the synergies of being both a shipping and terminal company. First and foremost, we will focus on improving and growing our existing footprint. Beyond the ongoing investments in Antwerp and in Houston, all our terminals hold potential for further expansion. We intend to evaluate and develop these and other opportunities in a disciplined manner along with an improving market. We will stick to our ‘bread and butter’: to be our customers’ trusted partner for the safe and efficient storage and handling of complex chemicals and other specialty bulk liquids.

Following the COP26 announcements, we are closely monitoring the fuel and energy transition progress and we want to make sure that we are well prepared to meet all upcoming regulations. Odfjell has established clear climate goals that go beyond regulation, and considers the opportunities that the energy transition will present for our terminals. LOOKING AHEAD INTO 2022 2021 has shown us how difficult and risky it can be to try predicting the future. At the same time, I am confident we are well prepared to take on the unforeseen. Fundamentally, though, I am optimistic for 2022. I think we will continue to see a normalisation of global supply chains, which should translate into more demand for storage and increased activity levels. On the back of COVID and the Texas freeze, we also see end-customers securing bulk storage of feedstock for greater certainty of supply. This is a very interesting trend, which ultimately could drive an absolute increase in demand for storage capacity throughout the value chain.

PAGE 34

Oikos Storage

ARUN SRISKANDA Commercial director, Oikos Storage NEW BEGINNINGS I think it is fair to say 2020 was a year no one expected and it was a case of déjà vu for all in 2021, given the protracted and range of ‘unlocking’ of countries and economies across the globe. At the end of 2020 I elected to take voluntary redundancy after 10 years

at one of the traditional oil majors. My plan was to jet off to Sri Lanka in order to take some overdue time to visit family and watch England’s cricket team on tour. As we all know, lockdowns sadly continued into Q1 2021 kiboshing my plans of some winter sun! I was however fortunate enough to be presented with an opportunity to return to work quickly with Oikos Storage. I knew the company and the bulk fuel terminal well from my previous role and with my wings clipped for the foreseeable future, it was an easy decision to join the company. I joined as commercial director backfilling Colin Horton who has featured in this magazine previously. As he outlined in his previous article (August/ September 2020), he oversaw a fantastic redevelopment of the site over the last 10 years, so I felt very privileged to be handed over a vibrant and dynamic commercial activity set. 2021 And onto the job at hand… 2021 presented many of the same headwinds as 2020, with some of the tailwind benefits dropping off to make the year that more challenging. Our business has a large proportion of its activity dedicated to the aviation market and demand for aviation fuels remained sluggish for most of the year. The everchanging travel restrictions making it hard to build the consumer confidence to provide the necessary base load in passenger demand to keep the sector operating efficiently. I looked on in admiration (and at times, enviously) at those brave passengers who were prepared to roll the dice on restrictions and changing quarantine regulations in search of adventures abroad. At the time of writing (December 2021) I am pleased to see some recovery in the aviation sector, particularly with the re-opening of the US-UK corridor which is so vital to the UK aviation sector, however the last two years have taught us to view developments with cautious optimism, as the ongoing spectre of more aggressive variant mutations of COVID-19 remain, prompting the re-emergence of red-list countries and closing of certain air corridors. The contango market structure of 2020 was replaced by flat to backwardated forward views on refined products in 2021 reducing sources of income for our client base which did result in more challenging conversations as UK fuel suppliers looked to rebalance their cost base. Despite this, 2021 was productive for the terminal. We continued with the same COVID-19 precautions as 2020 in order to protect the health of our operational staff as

TERMINAL OUTLOOK 2022 well as maintain the levels of operation that our customers have come to expect. The management team continues to be proud of our safety and operational performance in light of this, our ops teams are a real credit to our business. We have used the quieter periods to get ahead on our repair and maintenance targets as well as devoting more time to continue shaping our strategy in light of the accelerating pace of the energy transition. In this vein we successfully completed a project that now allows the terminal to receive and distribute renewable diesel (HVO). We have also opened up multiple conversations to bring other e-fuels to site – watch this space.

climate neutrality agenda. The tank storage industry is still disseminating the outputs of COP26 to understand how our business transitions to these changes and there remains a lot to do in the appraisal and understanding of new energy sources, such as hydrogen. My personal reflection is that there appears a very clear pathway on understanding production opportunities, but more work is needed to help the market visualise what the demand piece looks like for these new fuels. It is only when this landscape develops that we will get a better grasp of the commercial models that will help drive the necessary changes.

SUPPLY CHAIN CONSTRAINTS AND COP26

2022 – ‘HEALTHY’ CHALLENGES AWAIT

It would be remiss not to talk about the forecourt fuel shortage issues that we saw in the summer and autumn. Fortunately for the tank storage sector availability of bulk fuels was not the issue rather the well documented lack of HGV drivers. What it did highlight however was that supply chain resilience is only as strong as the weakest link which further supported our strategic aims of building more tankage on our site to provide the UK’s downstream sector with increased competitive advantage and resilience. Through our membership of the Tank Storage Association (TSA) and UK Petroleum Industry Association (UKPIA) we will continue engaging with the government and regulators on the UK’s downstream resilience.

I won’t be alone in predicting that 2022 will be a challenging year. However, we can look at how strongly the world has responded in 2021, whether it be the roll out of COVID-19 vaccines to ongoing improvement in technology as support in being able to ride out unpredictable bulk fuel demand in the wake of winter lockdowns.

We have continued with our development work (Oikos Marine and South Side Development, OMSSD) and in 2021 concluded the FEED and statutory consultation engaging with the community stakeholders around us. The responses will feed into our final planning application, which we hope to submit during 2022. We are also continuing dialogue with our engaged client base on their storage needs as part of the development works. Indeed, client requirements have been a large refreshed piece of work as our clients are themselves trying to frame what their needs will be in light of the energy transition. The aforementioned example of HVO implementation is a good illustration of what Oikos can achieve even in times of turbulent demand. 2021 saw the delayed hosting of COP26 in Glasgow with the empowering agreement reached by the COP26 leaders to retain the potential to limit total warming to 1.5°C. As expected, we also saw from the output increased hostility towards fossil fuels and a faster phase out of favourable tax treatment of these fuel types. Europe is taking on an increasing burden in the lead up to COP27 to accelerate the

Market structure (at the time of writing) continues to look challenging for our client base (fuel/energy providers) and recent lowering of oil stocking obligations will further decrease demand for bulk fuel storage. Our sector will therefore be put under further cost pressures with an ever-increasing need to innovate. These issues keep our sector interesting and I am looking forward to being able to work with our clients to extract opportunities for them and Oikos. I am hopeful the UK government will continue the more pragmatic approach to country restrictions that it took during Q4 2021 to provide the necessary support that the aviation sector needs. I’m also still hopeful of making a trip out to Sri Lanka to enjoy sampling my Gran’s curries whilst taking in a few games of cricket. Fingers crossed for a healthy and successful 2022!

Stolthaven Terminals

GUY BESSANT President, Stolthaven Terminals PAINFUL PANDEMIC UNCERTAINTIES CONTINUED THROUGHOUT 2021 After the unprecedented challenges of 2020, brought about by the COVID-19 pandemic, the world hoped to see

some sense of normality return in 2021. However, this was not to be the case. COVID-19 remained omnipresent throughout the year and continued to impact society and the broader economy as more variants appeared across the globe. There were, however, some positive signs in our industry with regards to the volume of chemicals being shipped, and towards the end of 2021 demand for transport fuels, including aviation fuel, increased. Terminal businesses overall performed well, although many were negatively impacted by weakness in the petroleum market, including lower throughput. There was significant M&A activity in the bulk storage industry, which surpassed US$4 billion (€3.6 billion) during the year, highlighting that ours is still viewed as a solid industry to invest in. At Stolthaven Terminals, we maintained momentum on our longer-term strategy, whilst also continuing to provide our customers with reliable services of the highest quality, our employees with a safe and enjoyable workplace, and delivered solid returns on our investments. Although some investments were postponed during 2020, we added capacity during 2021 and have ongoing development projects in Mount Maunganui (New Zealand), Dagenham (UK), Westport (Malaysia) and Ulsan (South Korea). At the same time, we are evaluating additional opportunities, including potential greenfield terminals in Ceyhan (Turkey) and Kaohsiung (Taiwan), and those linked to the overall energy transition. We continued to upgrade our existing facilities as part of our asset management strategy, and will begin construction of a new jetty at our Dagenham terminal during 2022. As well as investing in physical assets, we also focussed on projects to support the

PAGE 35

TERMINAL OUTLOOK 2022 five pillars of our strategy; digitalisation; innovation; sustainability; employee engagement and communication; and gaining a better understanding of our customers’ needs. 2022 OUTLOOK Looking ahead, there are several key issues with significant implications for the bulk liquid storage industry that we are monitoring closely. Supply chain disruption After a significant contraction in maritime trade during 2020 there has been a broad pick up in 2021. The rebound in trade flows is the result of large government stimulus packages and increased consumer spending on goods, particularly through e-commerce, coupled with restocking and inventorybuilding. The rebound was fairly swift because, unlike the global financial crisis of 2009, the downturn was not synchronised across the world. The medium-term outlook remains positive, although subject to mounting risks and uncertainties, and moderated in line with projected lower growth in the world economy. In the chemical industry a challenge faced by many is the significant increase in shipping container rates, which increased by more than 200% in some key trade lanes during the past year. This, coupled with capacity constraints meant that there were noticeably more enquiries for bulk chemical storage as shippers tried to find solutions. In reality, only a small proportion of these materialised as redesigning supply chains including finding available storage at load and discharge ports proved difficult. Whilst this was great news for the major container shipping companies, who saw record profits in 2021, and have taken the opportunity to invest in new building capacity, the reality is that the current disruption will continue well into 2022, and potentially beyond. Additional shipping capacity alone is not the solution, but rather port infrastructure and truck availability also need to improve. A situation that will not easily be solved in the short term. From a bulk shipping perspective, shipping demand for petrochemicals is expected to increase by approximately 4% per annum until 2025, however the chemical tanker order book for new buildings is at a multi-year low. This, coupled with limited yard capacity, ongoing low returns, and uncertainty on ‘future fuels’, means it is likely that the supply and demand imbalance will result in higher freight rates especially once M/R ships return to carrying petroleum products.

PAGE 36

Other ongoing challenges for the storage industry are port inefficiencies and the historical under investment in port infrastructure. These, coupled with new storage capacity being added without thorough planning could result in further costly port delays for ship owners. These costs would simply be unacceptable and unsustainable in other industries – aviation for example. To solve this there needs to be investment not only in physical assets, but also in digitalisation and the use of data to drive efficiencies. There has been very little progress in the past year. Finally, the more than a decade long optimisation of supply chains by our customers was challenged during the past year. Optimising a supply chain only works if there is a reliable and quality service. There is very little buffer in the supply chain for any unexpected ‘black swan events’ or disruption, such as the deep freeze in Houston in early 2021 or Hurricane Ida in Louisiana in the summer. Questions to address for the coming year are whether we will we see customers start to increase their inventories or look for multiple storage locations as an integral part of their business continuity plans. If so, as an industry we need to help. Sustainability Sustainability continues to be a significant focus for all businesses, not least due to COP26 throwing climate change into the spotlight once more. In the shipping industry the focus remains firmly on reducing CO 2 emissions, but in the coming years we can expect to see more emphasis on other environmental issues including degassing and wastewater as evidenced by the EU Green Deal. This is an area where ports and storage companies can play an important role – by providing sustainable shore power, vapour treatment systems and wastewater facilities. The challenge is for businesses to put our differences aside and work together as a joined-up ecosystem to solve the problem. The issue is the same ‘chicken and egg’ situation that is also evident in the ‘future fuels’ discussion for the shipping industry. Progress is being made to reduce its carbon footprint but to make a significant impact alternative fuels are needed – biofuels, green methanol, ammonia and hydrogen. However, one major hurdle is that ship owners won’t build new ships that use new fuels until they can rely on availability at their main bunkering locations. And storage companies won’t invest in more storage until they are confident that the shipping industry has agreed on its preferred fuel.

In addition, new legislation such as the EU Green Deal will have significant ramifications for the storage industry, and its customers. Progress is being made but this will be at a cost. The question is whether the industry will be forced to transition through the use of ‘sticks’ such as carbon taxes, or ‘carrots’ will be offered in the form of government subsidies. In the coming year we could see the European carbon tax replicated in other markets. With the margins of service providers already thin, who will bear these costs? If consumers are serious about protecting the planet, then they will need to be willing to pay more for the goods they consume. One topic not often discussed, but that must be addressed to ensure the sustainability of global supply chains, is the situation of the 2 million seafarers who ensure that ships move products around the world. The way in which these vital employees have been treated during the last two years, with ports and local authorities refusing crew changes, leaving individuals onboard for extended periods of time, has been appalling. Likewise, workers in the trucking sector are faced with the challenges of long working hours and low pay, and solutions are needed. Without improving the wellbeing of seafarers and truckers there will be a negative impact on how products are able to transit through most terminals. At Stolthaven, we have continued to develop several initiatives to address the multiple facets of sustainability, not only energy use and the reduction of emissions, but issues throughout our organisation including attracting new talent to an industry that is not always seen as attractive, diverse or inclusive. These are challenges that the whole industry faces. 2022 AND BEYOND Looking further into the future, the storage industry will continue to present opportunities and challenges in equal measure. As an industry it is important that all parties, whether our customers, port authorities, governments, ship owners, storage companies, surveyors, banks, trucking companies, and other parties, work together to address common issues. At Stolthaven, we will continue to focus on operating high quality, safe terminals and delivering services that evolve to meet the everchanging needs of our customers. We will also continue to pursue opportunities to partner with other industry leaders for the benefit of our customers, industry and wider society.

TERMINAL OUTLOOK 2022 been underpinned by strong demand from our Mexican tenants who want to increase access to US Gulf Coast refinery capacity. We expect demand from Mexico to continue and next year hope to announce a further expansion of the Motus T1 site with 250,000 bbl of capacity on top of the original 225,000 bbl. This will make for a total of 475,000 bbl of capacity, increasing the opportunity of southbound US based tenants to access the Mexico market. Our total position in the Port of Brownsville will be 1,115,000 bbl of total capacity. Both expansions are fully underwritten by tenant demand for more capacity.

Victory Hill Capital Advisors

ANTHONY CATACHANAS CEO, Victory Hill Capital Advisors With the two operating storage terminals that we acquired from Howard Energy Partners, earlier this year in Brownsville, Texas, our business is predominantly cross-border into Mexico. When I look back on the past year, US-Mexican trade has improved materially from the US side under a new Biden administration but has been curtailed by a less inclined Lopez Obrador government on the other. Typically, US midstream assets remain exposed to demand and supply vagaries within the domestic fuel value chain. Export-oriented fuel infrastructure has become more relevant since the advent of the shale boom in the United States, turning the country into a net exporter of oil, natural gas and associated products. The US-Mexico border position that we acquired in Brownsville benefits from export and import oriented business on the Gulf Coast. The result is our business remains well insulated from US domestic consumption issues that drive minimum volume commitment (MVC) levels in other US liquid terminal storage assets. Brownsville’s location puts it at an advantage due to its proximity to Gulf Coast energy and fuel infrastructure. This feeds the need for northbound trade flows. It benefits from being close to major refining hubs such as Houston and Corpus Christi. Likewise, the southbound lighter product-oriented business leans on tenants that have managed to maintain their product import licences into Mexico. OUR GROWTH IN THE PORT OF BROWNSVILLE In December 2021, we announced our intention to expand our total capacity in the Port, with an initial plan to expand the Motus T2, heavier fuels site by an additional 340,000 bbl on top of the original 300,000 bbl. Our expansion has

BROWNSVILLE AND THE ELON MUSK FACTOR Brownsville’s location offers international seaborne imports and exports as well as rail links to central and northern Mexico’s most populated areas. While Brownsville may be in one of the poorest parts of the US, its airport is welcoming, thanks to Elon Musk, who has recently supported a refurbishment of the airport after locating his SpaceX launchpad a few miles down the road. He was attracted to the site because it is on the same parallel as NASA’s Cape Canaveral in Florida. With improved infrastructure, more community investment, Brownsville and its commercial port are quickly becoming a little-known Valley gem. Traditionally, the Port of Brownsville has not seen large global integrated energy groups operating in the area. Many of them like Exxon, BP, Shell, Total, have favored other locations on the Gulf Coast and focused infrastructure capex in favor of areas like Corpus Christi or Houston. With Musk in the area, the map of the Port is bound to change materially and will attract more tier-1 players. Musk will be happy to know he has an ally in Motus Energy and Victory Hill, who are already bringing tier-1 tenants into the Port. MIDSTREAM, THE SUSTAINABLE WAY Politically, Biden’s administration has shifted towards different value chains and energies, specifically renewables, which should be encouraged. As an investor this is something we will be participating in. Yet we’re also starting to see many players shift away from wanting to own midstream assets, which in our view is a misunderstanding of the value of what these assets represent for the global energy system of tomorrow. Midstream can be readapted to help the storage of biofuels, ammonia, and other important

products of the energy transition. For us, the rhetoric around dropping all oil and gas assets without distinguishing between extraction and transportation while favouring renewables alone, is short-sighted and unsustainable. Midstream investments are sustainable when they can help a country like Mexico transition. You can also manage this type of asset in a sustainable way. We have worked hard with our partners in ensuring that sustainability in midstream management is a reality. We think about what products we store, why we store them, and we seek to understand the value chains that they are part of. Another important aspect is considering the CO 2e footprint of the value chain that you participate in. We like to understand the transportation means to and from our terminals. We also like to understand the destination as well. This helps us make better decisions regarding our own carbon footprint, the footprint of the logistical chain we participate in. THE VERY POSITIVE OUTLOOK FOR US-MEXICO TRADE Mexico has underinvested in its domestic midstream infrastructure and refining capacity for many years. The market was, until the energy reform in 2013, dominated by the national oil company Pemex. Today there are six refineries in Mexico owned and operated by Pemex producing a surplus of heavy fuel oil product, which they seek to export. These refineries are running at undercapacity and the pressure remains on Pemex’s international trading arm to find appropriate trading routes. The options are scarce in Mexico since midstream infrastructure is underdeveloped and cannot cater for the surplus supply of heavier fuels. In addition, the port infrastructure which might have been an export route, is severely crowded and underdeveloped, causing enormous bottlenecks. Brownsville supports Pemex in its endeavours to seek the exportation of heavier fuels, especially when destined for US refineries. In that scenario, Pemex is happy to work with partners that can increase their throughput and help reduce the surplus production of heavier fuels. At the same time, it needs to support the increasing demand in Mexico for refined products of much cleaner fuel. People are keeping tabs on our activities and on Brownsville. It has set the tone for the year for us. It’s allowed us to increase the revenue opportunities from our sites, expanding and optimising them accordingly. Over the next 5–10 years, the prospects for growth, particularly in cross-border trade, are good.

PAGE 37

PROFILE ENTERPRISE PRODUCTS PARTNERS

PREPARING FOR THE EVOLUTION OF ENERGY Angie Murray and Carrie Weaver from Enterprise Products Partners tell Tank Storage Magazine about the company’s new focus on evolving technologies for a lower carbon economy OVER THE past year or two there has been an increasing interest in the energy transition and the future lower carbon economy from companies connected to the oil industry. Tank storage and midstream companies are no exception. Enterprise Products Partners, based in Houston, Texas, US, owns over 80,000 km of natural gas, natural gas liquids (NGL), crude oil, refined products and petrochemical pipelines, 260 million bbl of NGL, petrochemical, refined products and crude oil storage capacity, 14 billion ft3 of natural gas storage capacity in salt domes, 19 natural gas processing plants, 25 NGL and propylene fractionators, and 19 import and export docks. It is one of the largest publicly traded midstream companies in the US. In May 2021, Enterprise formed the Evolutionary Technology team to identify, evaluate, and develop opportunities for energy evolution, primarily in the areas of carbon capture and storage (CCS), hydrogen, low carbon fuels, and plastics recycling. It is headed up by senior vice-president of technical services Angie Murray, a chemical engineer by background who has been at Enterprise for ten years. She oversees most of the engineering functions in the business as well as areas including the supply chain organisation and pipeline operations. ‘As a company we were already focussing on the areas of evolving technologies for

a lower carbon economy but efforts were scattered throughout the organisation. Creating this team provided the focus and the right resources behind it to allow us to be successful in evaluating opportunities and really pursuing them,’ says Murray. ‘It’s been a really exciting six months, probably one of the most exciting periods of my career over the past 25 years.’ GETTING THE RIGHT PEOPLE The Evolutionary Technology team started small. ‘We started off with a small technical team with three dedicated staff,

all chemical engineers. It’s a really outgoing, motivated, smart group of folks that we put together to be the one stop shop for evaluating new solutions and new technologies, and making sure they’re abreast of what’s going on in the world related to evolutionary technology,’ says Murray. The team pulled in resources from all areas of the company when needed, whether from operations, the commercial side, or the fundamentals team, when a market outlook was required. It quickly became apparent that commercial expertise was necessary as part of the core team, and in August 2021, Carrie Weaver was named as vice president, commercial, on the Evolutionary Technology team. Weaver, also a chemical engineer by background, spent five years at ExxonMobil before joining Enterprise, as a member of the commercial group, responsible for dealing with asset management and business development, including pipelines, terminals and docks. ‘I got involved from the commercial side to help really start building new relationships and leveraging the relationships we already have with our customer base to get creative and try to find solutions in an evolutionary technology world. It’s talking to our customers in a different way and I think the creativity we’ve seen in this

PAGE 38

PROFILE ENTERPRISE PRODUCTS PARTNERS group and the solutions we’re finding is making it really exciting,’ she says.

There is now a core team of five – three technical and two commercial staff – who sit on the team, overseen by Murray. FOUR CORE FOCUS AREAS ‘What’s important for us with this group is we want to make sure we’re managing our carbon footprint within our own assets while offering market solutions for managing third party’s emissions and creating a circular economy,’ Weaver explains. As it seeks to do this, the Evolutionary Technology team has four core focus areas – carbon capture, utilisation and storage (CCUS), hydrogen, low carbon fuels, and plastics recycling. ‘Right now, we are pursuing opportunities in all four of those areas I’d say pretty much equally. Some of them have more readily available opportunities than others but one way or another we’re advancing solutions and opportunities in all four of those areas,’ says Murray. For example, for CCUS, the team has existing capture technology at one of Enterprise’s gas plants. ‘It’s not classified as permanent sequestration in a Class VI well, but it is sequestered. We’re looking at taking that experience and applying it to other gas plants within our own assets and then looking at how we can provide the solutions for the market as well,’ says Murray. The team believes that hydrogen will play an important role in decarbonising operations, particularly when it comes to processes that conventionally require hydrocarbons as fuel for heating. An example of this process is being implemented in the new propane dehydrogenation (PDH) plant Enterprise is currently building. ‘We have modified the design of that plant to allow for the heaters to burn hydrogen that’s produced during the process, rather than burning natural gas which is what we do on our first PDH plant. That change in the design will allow us to reduce the emissions by around 90%. That’s a huge difference in our emissions for PDH2 just by making a relatively simple design change up front,’ says Murray. Storing and transporting renewable and low-carbon fuels, such as sustainable aviation fuel (SAF) and bio-LPG, will obviously play a part, but Weaver says they are also beginning to provide trucking, terminalling and logistics services for pyoil, produced from chemically recycled plastics. ‘We started that this year and we’re really looking at leveraging our distribution

network to increase the amount of pyoil produced from recycled plastic that we send through our systems. That’s the emphasis in the recycling group and to already have something on the board with that is exciting for us,’ she says. COMMERCIALISATION Weaver’s role, as previously mentioned, is focussed on making the new technologies and strategies profitable, and as she has alluded to, it is the use of existing assets that will make the difference. ‘We have a very broad asset footprint. What we’re looking at doing now is repurposing assets to deploy them into different services. There might be a pipe that transports a hydrocarbon product today but we’re looking at putting in CO2 or hydrogen in the future. What that does is bring down the overall cost of the projects that we’re looking at and really helps the new projects get off the ground, making it profitable for the customer,’ she says. Building relationships with those customers is also vital for the Evolutionary Technology team. ‘It’s no different than any other business in that it starts with understanding what the customer’s needs and drivers are, and collaborating with them and building strategies with them to meet the end goal,’ Weaver says. ‘By using all of the relationships we have today we think we can create scalability in these projects to make them the most sensible and efficient project for the customer. The commercialising is really not much different than what we do today.’

understanding what the customer’s needs are in these different lower-carbon arenas, finding the solution that makes sense for them and for us, and then using our asset footprint, capabilities and relationships. This really sets us up for success.’ Murray says that it will be about adding additional services and product types, while carefully considering energy efficiency, emissions and overall environmental impact. The slight blip on the horizon, however, might be the lack of regulatory certainty, such as the permitting process, how long that will take and who will be responsible for it, as well as basics such as the acquisition of pore space The team is confident this will be short-term, however. ‘It should all fall into place. Policy should get clarified, and incentives appear to be moving in the right direction. As long as that falls into place, we don’t see these as threats but as an evolution,’ says Weaver. Management, customers and stakeholders alike are very supportive of the work of the Evolutionary Technology team. ‘It’s a natural fit for our business and giving the right people and the right companies the opportunity to come together at scale is going to be important. I’m thankful that I get to be a part of that and to work with the team that is so talented and motivated to do this. I think that if anyone is going to pull this off, the team that we’ve assembled is going to be able to do it,’ says Murray. For more information: www.enterpriseproducts.com

NO CHANGE IN FOCUS Rather than a transition, Enterprise sees the future of energy as an evolution that won’t require an abrupt change in direction or a rethink of the business strategy. ‘Really the services we’re looking at providing aren’t very different to our core midstream services,’ says Weaver. ‘They are actually just a natural extension of our value chain. The only thing different is

01 Angie Murray 02 Carrie Weaver 03 An aerial shot of the Enterprise Hydrocarbons Terminal along the Houston Ship Channel, US 04 The PDH2 plant under construction

PAGE 39

PROFILE NAVIGATOR TERMINALS

NAVIGATING TO A SUSTAINABLE FUTURE Jason Hornsby tells Tank Storage Magazine about Navigator Terminals’ push towards sustainable product logistics SUSTAINABILITY is not a new concept for UK tank storage and energy infrastructure company Navigator Terminals. With the recent focus on the energy transition, the COP26 conference and ever-more stringent climate targets, companies and industries the world over are looking at how to prepare for a future with less oil in it. In the tank storage world, much of the talk has been around biofuels, sustainable chemicals, and the potential fuels of the future, such as hydrogen and ammonia. Navigator has been serving these markets for some time already. ‘Navigator has always taken a long-term market driven view to investments, for example, we were one of the very first companies to provide the assets for our clients to put [fatty acid methyl esters] FAME into diesel and we had one of the very first terminals where ethanol was blended into gasoline in order to produce E5 vehicle fuel,’ says Navigator CEO Jason Hornsby. The company now has more than ten years of experience in handling such products and has developed a framework to expand provision for these more sustainable alternatives to petroleum. Following a recent collaboration agreement to develop a roadmap for the storage of hydrogen, ammonia and carbon dioxide with 8 Rivers Capital, a USbased sustainable technology provider, Tank Storage Magazine was keen to find out more, and spoke to Hornsby. OUTPERFORM, DIVERSIFY AND GROW Navigator Terminals began life in the 1970s when Tees Storage developed a terminal at Seal Sands on the River Tees to serve the growing local chemical industry. Navigator Terminals UK was formed when operating assets of Vopak UK and Greenergy North Tees were combined. Navigator currently has four sites around the UK – near London, in South Wales, and two on Teesside – with a total storage capacity of 1.28 million m3. Its terminals handle crude oil, petroleum products, chemicals, bitumen, liquefied gases and

PAGE 40

biofuels. The sites are located at major UK ports and serve major demand centres.

to do is to build out our offer to the sustainable energy and fuels markets.’

‘Navigator is executing an ambitious diversification and growth strategy, and we recognise the need to put the right resources and investment into the future of the business today, taking positive action to maximise the opportunity. The overarching agenda is to become the number one provider to the UK future energy carriers and emissions reduction market by 2030,’ says Hornsby.

Navigator is not ruling out any potential future fuels for the energy transition, and as mentioned, is even studying solutions related to carbon capture and storage (CCS). Hornsby points out that its top tier COMAH facilities can handle just about any liquid or compressed gas products, making Navigator ideally placed to serve the new markets.

The company has built its strategy around three main pillars – outperform, diversify and grow. A major focus at the moment is diversification, in both products, and in its workforce. Hornsby explains that Navigator is making efforts to ensure a more inclusive and diverse workplace, and that 30% of the senior management team is already female. ‘To further support our diversification strategy, Navigator has strengthened the team with specialist procurement leadership and also brought Matt [Wilson] to the team as the energy transition manager, to be 100% dedicated to the hydrogen, ammonia and carbon capture side of the business,’ says Hornsby. ‘What we’re really looking

‘The future holds a combination of renewable energy and sustainable fuels and chemicals, along with existing fossil fuels and hydrocarbon derivatives. Ethanol, methanol and FAME are well established products for Navigator today, and what we’re now looking at is a range of energy and fuel supply chain solutions, such as blue and green hydrogen and ammonia. We know how to serve these markets, so we are now focussing on the infrastructure and assets,’ he says. A NORTHEAST CCS CLUSTER One of the locations that holds great potential for diversification is Navigator’s Teesside location, with two neighbouring terminals on the River Tees and a

PROFILE NAVIGATOR TERMINALS combination of over 860,000 m3 of storage. It currently has road and sea import and export capability and will soon complete a major rail upgrade project. It is fully integrated into the UK’s largest chemical cluster. Many major energy transition projects have been announced in Teesside recently. Navigator is also working on several concepts to develop the remaining land within its Teesside locations.

The chemical industry in northeast England has championed CCS as a way to decarbonise in the face of processes which unavoidably produce CO2. It is developing what will be a CCS cluster, the East Coast Cluster, involving the companies on the rivers Tees and Humber, which has received UK government backing. ‘The East Coast Cluster puts Navigator Terminals’ Teesside assets as a perfect location to develop the UK’s first-of-a-kind multi-model CO2 receiving, processing and transport hub, to enable CO2 shipping and emissions reduction across the UK,’ says Hornsby. Navigator has signed its first collaboration agreement with one of the companies in the cluster, 8 Rivers, which is developing the Whitetail Clean Energy Net Zero Power Station on Teesside, which will be operational by 2026. As well as producing power, 8 Rivers is developing technology that can produce clean hydrogen and ammonia, whilst capturing all of its carbon emissions. Navigator is progressing the opportunities for the storage and transport of CO2, hydrogen and ammonia in the UK. ‘We recognise that in the coming decades there will be significant volumes of clean fuels and CO2 to be shipped for storage and this partnership with 8 Rivers forms the first step in understanding and then deploying the infrastructure needed to help the UK meet its decarbonisation goals, creating high skilled jobs and supply chain benefits in the process,’ says Hornsby. Beyond this agreement, Navigator is looking at ways to connect other CCS clusters in the UK, transporting captured CO2 to the Navigator CO2 receiving hub. Some of this will be sent for permanent geological storage in depleted gas wells, but Navigator foresees opportunities to supply it for other processes. AN ACTIVE PLAYER While Navigator is a supporter of the East Coast Cluster, it has just announced that it is also supporting another decarbonisation programme – East Coast Hydrogen – which is focussed on hydrogen rather than carbon dioxide. East Coast Hydrogen is a project to

start to decarbonise domestic heat by blending hydrogen into the natural gas supply to up to 4.4 million homes. Navigator is planning to support the project with specialist technical and asset solutions, as part of the long-term approach to decarbonisation. ‘For more than four decades on Teesside, Navigator has developed assets to safely and efficiently import export, store chemicals, fuels and gases. Navigator is excited to support the East Coast Hydrogen project with novel, flexible and responsive solutions, enabling the everyday activities of the UK population to contribute to net zero,’ says Hornsby. CHANGE IS COMING The UK government intends for the country to achieve net zero carbon emissions by 2050 with a ten-point plan in place designed to unlock £12 billion (€14.1 billion) in investment. Hornsby believes this is providing momentum and will improve the economics behind sustainability projects. It needs to be recognised that the COVID-19 pandemic has also played a part in driving this change. ’Almost overnight, you had statistical data where there were fewer planes in the air and fewer cars on the road, and the impact to the environment and supply chains worldwide, allowing the market to quantify and analyse the risk and opportunity’ says Hornsby. The positive impact of this has been that investors and shareholders are now actively encouraging the development of green and sustainable projects. Hornsby is very clear that, while business models will have to change in the future, there is still a future for fossil fuel terminals supporting the transport and heating markets. Navigator prides itself on being an energy transition

partner, working side by side with its existing customers to support their decarbonisation aims. ‘The reason that we’ve highlighted ammonia and methanol and hydrogen is because they all coexist, and for us a combination of renewable energy carriers and sustainable fuels will be the solution,’ says Hornsby. ‘What we want is to continue to connect our customers to their customers, whether it be trains, ships or trucks for onward distribution.’ Navigator does have a head start, with its long experience in handling all kinds of liquids, a very supportive investment structure and the culture to develop innovative, bespoke, and sustainable solutions, the energy transition offers Navigator the ideal platform to reshape the product portfolio, ensuring the business can thrive for decades to come. ‘We are on the net zero journey right from the beginning, taking a holistic approach to new energy carriers and emissions reduction opportunities, we have stated our aim to be net zero by 2040 or earlier. To support this, we are adapting our existing road, rail, jetty infrastructure, and investing in new assets to transition with our existing customers and attract new partners, such as 8 Rivers. We’re dedicating a lot of resource to these new opportunities today, knowing that some of this might take three or six or more years for delivery, but we want to be there right at the beginning.’ says Hornsby. For more information: www.navigatorterminals.com www.8rivers.com

01 Navigator Terminal Teesside asset 02 Jason Hornsby

PAGE 41

PROFILE STORAG ETZEL

PREPARING FOR UNDERGROUND HYDROGEN STORAGE The leading and only independent cavern operator in northwest Europe is preparing for underground hydrogen storage STORAG ETZEL was formerly a public enterprise under the name IVG. It was commissioned in 1971 to build an underground storage facility at Etzel, Germany, with a capacity of 10 million tonnes. This was to store crude oil as a national stockpile and to operate the aboveground facilities on behalf of the Federal Government.

Following privatisation in 1993, IVG acquired ownership of the cavern complex in 2005. In 2016, the long-established company was renamed Storag Etzel, and became largely independent. ADVANTAGES OF THE ETZEL SITE In the early 1970s, after a thorough exploration of the underground, the Etzel salt dome with its mushroom-shaped structure was chosen for the project. The local salt dome is about 12 km long and 5 km wide and extends from a depth of more than 4,000 m to 750 m below the surface. Hardly anywhere else in Europe are the conditions so favourable for the construction of caverns.

Since the 1980s, natural gas consumption in Germany has increased enormously, and long-term supply contracts have been secured between gas producers and German energy suppliers. To be able to supply gas in the event of pipeline problems, the Norwegian oil and gas producer Statoil signed a contract in 1986 to lease storage capacity at the Etzel site. Initially, nine existing caverns were converted to gas storage with a working gas volume of more than 500 million Nm³. In 1993, the Etzel Gas-Lager (EGL) with its surface facilities became operative and was integrated into the North European pipeline network in the following years. As technical service provider Storag Etzel is responsible for the operation of EGL.

The site was also chosen for its proximity to the North Sea and to the Niedersachsen Jetty in Wilhelmshaven, which is some 25 km away and where the sea water pumps are installed. Here the water is taken from the sea and pumped through a pipeline to Etzel to create the caverns by solution mining the Etzel salt. By this process brine is produced and is transferred back by pipeline into the North Sea. Wilhelmshaven is also the ideal location for the only deep-water port and oil hub of Germany where the crude oil arrives by tank vessels. The initial plans envisaged 33 caverns with an average diameter of 35 m and a height of up to 500 m. The solution mining operation first started towards the end of 1973 after preparatory work on infrastructure, pipelines and pumping stations. Until 1978, the caverns were filled to a volume of some 8 million m³. The political decision in the late 1960s to establish a strategic oil reserve was

PAGE 42

INCREASING IMPORTANCE OF NATURAL GAS

a wise one, because in 1973 the first oil crisis occurred as a result of a reduction in crude oil supply and a subsequent increase in oil prices. This led to an economic recession and temporary driving bans on Sundays. The crude oil volumes stored at Etzel are part of Germany’s national reserve that safeguards a continuous supply of energy in case of future political crises or natural disasters in the oil-producing areas.

Between 1994 and 1998, the Etzel cavern storage was enlarged by six new oil caverns as more west European stockpiling associations secured longterm lease contracts. A seventh oil storage cavern followed in 2004 – and the total oil storage capacity reached the original volume of 10 million m³. For the first time at Etzel these new caverns were developed by deviated wells that were drilled from so-called cluster pads. This directional drilling technique became the standard for the expansion of the gas cavern field from 2007 onwards.

PROFILE STORAG ETZEL EXPANSION OF THE CAVERN FIELD The existing infrastructure and permits as well as the technical expertise on site were favourable preconditions for the expansion project of the Etzel cavern storage that started in 2006. During the following years more than 30 new gas caverns were solution mined and brought into operation in the North Field and three new gas surface facilities were built at the same time in the South Field. As a result, the Etzel Cavern Storage evolved from a pure crude oil storage also to one of the major gas storage facilities in the world, centrally located in North Germany’s energy hub. Extensive infrastructure investments in plant safety and borehole integrity of oil caverns went hand in hand with the expansion. At present 75 caverns provide a geometric storage volume of around 40 million m³ for the secure and environment-friendly storage of large quantities of oil and gas. A total of 99 caverns have been approved at the Etzel site.

GERMAN-BASED FACILITY OWNERSHIP The caverns are owned by two cavern funds which were launched in 2008 and together they form the largest infrastructure funds in Germany. Investors come from the insurance business, pension funds and foundations. Storag Etzel is the manager of the caverns as defined in German mining law and is responsible for the operation of the caverns and associated permitting. The company owns the entire infrastructure for the operation of oil storage caverns and caverns under construction. CAVERN TENANTS Storag Etzel is one of Europe’s largest crude oil storage companies with some 11 million m³ of crude oil in 24 caverns for storage. The crude oil is available to stockpiling organizations of various European states in times of energy crisis. Likewise, traders have stocked up again and again in recent years. By mid-2022 Storag Etzel will make some 5 million m³ of storage volume available for mid and long-term crude oil storage. The company offers attractive commercial conditions for customers, the caverns that are connected to the nearby oil port facilitate high flexibility in terms of storage volumes and turnovers, even on short notice. On the gas side the owners of the individual surface operational plants and the technical and commercial operators for the 51 gas caverns at the Etzel site are four consortia each comprising notable European gas supply companies. These contracts reach far into the 2040s.

way for energy bulk storage. Looking into the future: In addition to storing fossil fuels, like crude oil and natural gas, renewable energy can also be stored in caverns by transforming excess electricity into hydrogen (H2) or synthetic natural gas (SNG = methane). The operator has already converted caverns from oil to gas in the past to prepare for the future; now the conversion from gas/oil to hydrogen is next on the agenda. To fulfil this ambition, Storag Etzel has set up an initiative called H2CAST Etzel. For more information: www.storag-etzel.de/en

FUTURE HYDROGEN STORAGE Today the function of the Etzel cavern storage site is not only to ensure Germany´s security of supply but also to support other EU countries energy demand. Thanks to its favourable location and excellent connection to oil and gas infrastructure it represents a practical model for European cooperation. Underground storage has proven to be an extremely cost-effective, operationally safe, flexible and environment-friendly

01 Etzel Cavern Storage in recent days – security of supply with natural gas and oil 02 Cutaway model of the Etzel cavern storage system 03 Gas cavern well head – state of the art 04 Animated picture of real caverns with boreholes drilled into the salt dome Etzel 05 Oil cavern well head – state of the art

PAGE 43

PROFILE EXOLUM

REIMAGINING A TERMINALS BUSINESS Exolum’s Andres Suárez looks back on a year of change for the company formerly known as CLH Group ON 1 MARCH 2021 , CLH Group, the leading terminal company in Europe, with operations in eight countries, announced a major rebrand, transforming itself into Exolum. The focus of the newly renamed business, as it said at the time, is on ‘adapting its business to decarbonisation and the energy transition, the digitalisation of its activities and the fight against climate change.’

As the end of 2021 approaches, Tank Storage Magazine spoke to Andres Suárez, global strategy & innovation lead and Exolum Ventures lead, to look at how the first nine months have gone, the changes the company has been making, and Exolum’s plans for the future. ‘Our main objective is to develop efficient solutions aimed at addressing the challenges generated by the decarbonisation of the economy,’ he says. ‘We are currently launching initiatives to leverage on our experience as a comprehensive manager of energy product storage, transport and distribution infrastructures in order to develop comprehensive logistics solutions focussed on service quality, supply security, efficiency and competitiveness.’ The changes have resulted in some internal reorganisation, and seen the formation of Exolum Ventures, the new business unit set up in 2020 to identify, develop and operate promising new business models aligned with the energy transition, and team up with the startups and companies developing those innovative models to help drive them. Exolum has also launched a number of diversification projects linked to the energy transition. HYDROGEN WILL CHANGE THE ENERGY LANDSCAPE The use of hydrogen as a fuel is still not widespread, but it is likely to play a major role in future. As Exolum has pledged to reduce its greenhouse gas emissions by 50% by 2025, and become a carbonneutral company by 2050, hydrogen is an important product. ‘We are exploring opportunities around hydrogen, not only to decarbonise our

PAGE 44

own operations but to identify new business opportunities and services we could render to our customers. Hydrogen may significantly change the energy landscape in the long run and, as a company focused on energy and logistics solutions with more than 95 years of history, we must remain alert to this evolution and reinvent ourselves according to the energy transition and how the needs of our customers evolve,’ says Suárez. He believes that while electrification is likely to be the solution for passenger cars and other light vehicles, heavy transport, such as trucks and buses, will more likely shift to hydrogen, due to limitations of battery technology. According to the Hydrogen Roadmap Europe 2019, such vehicles could become competitive between 2025 and 2035. Storing it remains a challenge. ‘Since the Exolum Ventures business unit was created two years ago, we have internally examined and analysed a number of logistics solutions that may be applied to the hydrogen sector. These options include physical storage in tanks, storage in other formats such as ammonia, using liquid organic hydrogen carriers (LOHCs) or even salt caverns. However, to date, these alternatives seem somehow far in the future owing to associated costs and we are focussing on bringing hydrogen production closer to the end consumer in order to reduce

the costs linked to storage and transport,’ says Suárez. This has included developing a new green hydrogen production facility, which will be commissioned in 2022. The €2 million plant, next to Exolum’s existing facility in San Fernando de Henares – Torrejón de Ardoz, near Madrid in Spain, will initially produce 60 tpa of green hydrogen using either photovoltaic power or green electricity from the grid. Suárez says that not many companies have real experience in producing and handling green hydrogen, and Exolum saw an opportunity to create its own fully integrated system and equipment, and create a competitive advantage. Exolum teamed up with Fusion Fuel, a Portuguese firm which has developed a new production system based on microelectrolysis, which produces hydrogen at a 30% lower price than conventional processes. The site for the plant was carefully chosen. ‘In addition to the fuel terminal, which serves one of our main markets in central Spain, this location also houses our central pipeline dispatching centre, our centralised terminal control centre and our central laboratory, so we decided to complement all these activities with the new green hydrogen facility in order to create a complete terminal committed to the energy transition that offers us the possibility to showcase all of our competencies and expertise in a single

PROFILE EXOLUM place for our customers and other stakeholders. Additionally, another of the reasons for choosing this location is that it may become part of the first Win4H2 alliance route,’ WIN4H2 This brings us nicely to Win4H2, a major new alliance that Exolum has formed with Spanish electricity and gas company Naturgy and Spanish gas company Enagás, to develop an integrated network of green hydrogen refuelling stations (HRS) across Spain, and also to connect to Portugal and France. In the first phase, the alliance plans to develop 50 hydrogen stations, with the first route planned between Madrid, Valencia and Cartagena. At present, they are working on the technical design to supply hydrogen to customers, discussing options with potential users and preparing to apply for European and Spanish subsidies. ‘The road transport sector may be revolutionised with the deployment of hydrogen, but substantial assistance in the form of official subsidies will be required owing to the high cost of production, storage and supply compared to fossil fuels. In the case of Spain, official aid for hydrogen deployment may not be enough to achieve this. In this scenario, we believe that, instead of competing in a sector marked by great uncertainty, the best option is to develop alliances with companies and entities that share common interests and are complementary to us,’ says Suárez. DECARBONISING AIR TRAVEL Hydrogen is not, at least for now, a suitable alternative for aeroplanes, so those seeking to decarbonise air transport are focussing on sustainable aviation fuel (SAF), which is produced from non-fossil sources. This can include waste edible oils and fats, other plant-based oils, municipal waste and agricultural residues. SAF can reduce carbon emissions by 80% based on full life-cycle analysis, as well as producing significantly less sulphur and particulate emissions compared to conventional kerosene.

customers the option to decide how green they want their flights to be by directly reducing emissions. Avikor can be purchased directly on our website and we are currently engaged in discussions with airlines and online travel agencies that have shown interest in marketing the service through their commercial channels,’ says Suárez. ‘Additionally, this initiative has received the support of AENA (the world’s leading airport operator in numbers of passengers, which manages the general interest airports and heliports in Spain) and of ALA (the Spanish Airlines Association).’ CIRCULAR SHIPPING FUEL Shipping is responsible for 3% of all carbon emissions globally and another of Exolum’s new projects has seen it team up with Spanish bunker oil company Mureloil in a 60:40 joint venture to designe and develop a plant to recover fuel oil from waste in the Spanish port of Algeciras. ‘Due to the growing need for environmental services at the different European ports, adequate facilities must be available for the receipt, storage and treatment of waste generated by vessels (MARPOL waste), ensuring their proper management in an environmentally friendly manner. The plant we are currently developing in Algeciras aims to meet this need and recover a product (fuel oil) capable of being reintroduced into the market. This is, therefore, a circular economy-based model,’ Suárez says. Waste will be received by barge at the plant, which will go through a decanting, centrifuging and filtration process to

recover fuel oil. The plant will also include a wastewater treatment plant to ensure subsequent discharge does not have a negative effect on the environment. The finished fuel oil will be distributed by barge or road. The plant is currently in the permitting phase. GOING THE RIGHT WAY Exolum will, of course, not stop there. Suárez explains that the company is exploring a number of business models based on products and services that can be offered based on existing infrastructure, as well as those which will require investment in new infrastructure. This might include electricity mass storage, carbon sequestration and water, alongside hydrogen and other low-carbon fuels. ‘Our customers and other stakeholders have positively welcomed the change and are pleasantly surprised by our ambition to transform the company and by the wide range of business opportunities we are currently exploring in relation to the energy transition. In fact, many have contacted us to explore alternatives together. This is the best proof that change is on its way and we are moving in the right direction,’ says Suárez. For more information: www.exolum.com

01 Andres Suárez, global strategy & innovation lead and Exolum Ventures lead 02 Potential network of hydrogen stations in Spain

‘We believe SAF will gradually gain market share as its production cost decreases with the incorporation of more production capacity of this sustainable fuel,’ says Suárez. Exolum has signed a deal to supply SAF to London Heathrow Airport in the UK, and has introduced Avikor, a logistics platform allowing customers at Madrid and Barcelona airports to fuel their flight with SAF. ‘We plan to expand to other Spanish airports as demand from customers increases. This pioneering service gives

PAGE 45

MARKET ANALYSIS SHIPPING

DECARBONISING SHIPPING Paul Hickin from S&P Global Platts looks at how shipping can meet decarbonisation targets

SHIPPING’S EFFORTS to meet decarbonisation targets will be both extremely easy and very tough. Near-term regulations look achievable while potentially shifting 2050 limits look more like ambitions than credible goals. Shipping will have to balance these competing challenges. The International Maritime Organization (IMO) agreed in its initial greenhouse strategy 2018 to reduce the carbon intensity in the global fleet by 40% in comparison to 2008 levels by 2030 and to reduce greenhouse gas emissions by 50% by 2050. There had been talk that the IMO would boost a 50% cut in greenhouse gas emissions by 2050 to 100% but delegations at the Marine Environment Protection Committee, which ran from 22-26 November 2021, voted not to adopt a resolution. 2050 may seem far away, but calculated in shipping years, and the purchases of ships bought later this decade may well be still sailing the seas when that day comes. DECREASING EMISSIONS The industry has certainly been trying to clean up its act. The shift away from high sulphur fuel oil (HSFO) known as IMO 2020 showed the ability to cope

PAGE 46

with energy transition, when drastically removing sulphur content in fuel – either via scrubbers or very low sulphur fuel oil – was the priority. And 2030 targets don’t look too challenging. Efficiency improvements have already gone a long way in improving emissions. While total maritime trade has grown over the past decade, the sector’s emission intensity has decreased because of larger vessels, design improvements, technological upgrades and slow steaming. The Energy Efficiency Design Index and the Ship Energy Efficiency Management Plan regulations mandate an average annual efficiency improvement of 1.5% from 2015 to 2025 and these alone make lowering carbon intensity in the near term achievable. The use of low carbon alternatives such as LNG, LPG and methanol are also helping the industry comply with targets over this decade with the majority of LNG carriers being ordered powered by LNG. It’s a similar story for LPG. The largest vessel count for methanol powered ships is for product tankers in dual fuel engines. But while the use of low carbon options seems to help the industry comply with

regulations for now, they fail to help provide the long-term carbon intensity reduction and zero emission goals which will require an extensive switching to alternative fuels and technologies. DEEP SEA SHIPPING Around 85% of the sector comprises deep-sea shipping, which is far more difficult to decarbonise given the high density fuels these use, expensive retrofitting and longer lifespans. The high energy density for alternative fuels is critical for their use in large oceanic vessels. Liquid ammonia and liquid hydrogen have energy density of around 30% and 22% respectively compared to HSFO. This translates in storage requirements of around 3.3 and 4.5 times. However, storing hydrogen on board becomes an even bigger issue terms given the space needed and heavy tanks required and thus limits longer distance sea travel. Methanol and ammonia offer more practical solutions given they offer more accessible storage and transportation options and there is greater experience in handling these materials. But the bottom line is that apart from energy densities and storage considerations, future technological

MARKET ANALYSIS SHIPPING growth will determine the choice of clean fuel. And no technology is commercially available on a broad enough scale. But looking at the merits, clean methanol and liquid ammonia have the edge over liquid hydrogen due to higher density, lower onboard space requirements, favourable handling temperatures, easier bunker storage and long handling experience. For large vessels with long routes, the shipping industry could start adopting grey methanol in the near term and switch to green methanol from hydrogen in the longer term. This may increase costs due to engine modifications but may be price effective longer term. There is also the catch-22: investing now in a particular option brings down the costs around infrastructure but raises the demand and thus the price of the fuel. COMPLEX SOLUTIONS NEEDED But a lot rides on the demand for clean shipping, a supporting policy and regulatory environment, investments in renewable methanol, ammonia and hydrogen production and even competition from other transport sectors for similar alternatives. It seems jet is focussed on biofuels and cars around electric vehicles, but should

the economics and availability change, there could be greater competition in the shipping space. After all, shipping has traditionally taken ‘the bottom of the barrel’ in oil terms and it remains to be seen if a similar situation arises with alternative fuels.

ports and bunkering to onboard storage, getting the specifics of the supply chain for different parts of the industry will be crucial. Never more has shipping need a complex web of solutions to meet its varied and competing needs but never more has it needed one voice.

At the ports is also crucial with the development of bunkering infrastructure and ship-building with using future fuels in mind.

It is starting to find that voice just in time.

From the near-term targets, to constantly shifting long-term goals, from small journeys to deep-sea shipping, from oil tankers to container carriers, from

Paul Hickin is a director at S&P Global Platts. He gave a talk on this subject at V Med Hub Day in Port Tarragona, Spain, held on 18-19 November 2021.

For more information:

THE INDUSTRY’S ONLY AUDITED MAGAZINE. GUARANTEED READERSHIP TO DELIVER THE BEST VALUE FOR MONEY. 40,000 ANNUAL CIRCULATION*

13,846 PAGE VIEWS PER MONTH

7 ISSUES PER YEAR

6,616 USERS PER MONTH

3,250 MAILED TO NAMED TERMINAL PROFESSIONALS EVERY ISSUE

2,561 PER ISSUE DISTRIBUTED AT INDUSTRY EVENTS

BOOK NOW David@tankstoragemag.com www.tankstoragemag.com

Tank Storage Magazine’s audits are conducted by BPA International, the leading auditing service for B2B publications. *Figures taken from the latest BPA audit - June 2019

Established 2005. Trusted. Valued. Influential.

PAGE 47

MARKET ANALYSIS SUSTAINABLE ENERGY

THE CHANGING FACE OF LIQUID FUELS SUPPLY Francis Osborne from Argus Media examines government regulations, supply chain changes and emerging fuel options AS UNUSUAL and catastrophic weather events increase in frequency the issue of climate change is rapidly rising up the global political agenda. The recent COP26 meeting in Glasgow may have demonstrated that the global community is still a long way from forging a collective approach but there is no denying that Europe is now well embarked on a pathway that will lead to a significant reduction in carbon emissions. Companies involved in the handling and storage of transport and other fuels must ready themselves for a brave new world. Gone will be the need to handle a small number of fuels with uniform characteristics and specifications. Instead, operators will need to adapt to dealing with a wide range of new products and feedstocks, many of which will have only one thing in common – the potential to reduce carbon emissions.

emissions (GHG) by at least 55% by 2030. For the transport sector, the ambition is to reduce GHG by 13%, a drop in energy terms of about 26%. While many countries will need to up their game to meet the new target, some – notably Germany and the Nordic countries, already have targets that exceed RED II.

GOVERNMENT REGULATIONS

There simply is no single pathway to produce a finished bio-product, either gasoline or diesel. Blenders will use a range of different green fuels to meet future mandates, varying depending on the specific caps and mandates and feedstock available in each individual country. Figure 1 illustrates a theoretical take up of feedstock using cost of supply as the key criteria. Part A fuels are used

In July 2021 the EU introduced its Fit for 55 package of proposals to amend the Renewable Energy Directive (RED II), first introduced in 2019 and which covers emissions in the transport sector. These proposals, which should enter into force in 2025, significantly strengthen the ambition to tackle carbon emissions. The aim is to reduce greenhouse gas

Annex IX Part A - Submandate

Remaining transport mandate

Crop cap limited

Increasing obligation

Individual countries also differ in how they mandate what proportions of feedstock are allowed to be blended into biogasoline or biodiesel. The use of Part B feedstock (e.g. used cooking oil or animal fats) is capped in all countries but at differing levels. In France the cap at the moment is less than 1%, in Italy it is 5%. All countries mandate for the use of Part A advanced biofuel feedstocks such as palm oil mill effluent (POME) or tall oil (a by product of pulp and paper production) - but again at different levels. In Germany the mandate stands at 2.6% but in Italy at 8%.

Part B cap limited / feedstock limited Double counting

Mandate limited

Physical blending

Double counting

Increasing cost

Physical blending

Part A

Example fuels

• HVO Part A • 2G Ethanol

Part B

• UCOME/TME • HVO Part B

• 1G Ethanol • 1G FAME • HVO 1G

Extra Part A or C

• FAME/ HVO Part C • RFNBO / RCFs

first since this is mandated – with the double counting incentive allowing just half the volume required by the mandate to be blended. Then Part B fuels should be used, since the double counting incentive makes this the most cost effective way. After that capped crop-based fuels are used and finally the most expensive Part A or Part C fuels (including synthetic fuels) are blended. Note that the double counting incentive is to be removed under the latest proposed amendment to RED II. SUPPLY CHAIN CHANGES Companies involved in the supply chains for transport fuels will need not only to continue to handle conventional, refinery sourced fuels but also will need to be able to accommodate this wide array of biofuels. And the volume of biofuels in the market is set to rise significantly. Currently we estimate that around 30 billion litres of biofuel is blended into road transport fuel across Europe. This is forecast to double to 60 billion litres in the next twenty years (Figure 2). At the moment it looks as though there will be at least ten different liquid biofuels entering the road transport fuel. Some of these will be essentially the same product but since they will be sourced from different feedstock subject to different caps and mandates, companies involved in the storage and distribution of these fuels will need to ensure that they remain segregated – for instance Part A fatty acid methyl ester (FAME) cannot be allowed to mingle with Part B FAME. An equally wide array of feedstock will be used to make these biofuels. Excluding first generation crop-based biofuels, the demand for feedstock in Europe to produce Part A and Part B biofuels is estimated at around 6.5 million tonnes in 2020. This comprises eight different feedstock types and ranges from used cooking oil (3.3 million tonnes) to cashew nut shell oil (30,000 tonnes). 60% of this feedstock currently is imported and as the market grows in size the dependence on imported flows will also grow. The only Part A and Part B feedstock sourced from Europe in any meaningful volume is tall oil, used cooking oil and animal fats. 1

PAGE 48

European biofuel demand in road transportation, 2020-2040 02

mn l

HVO Part A

HVO Part B

HVO 1G

BTL

Ethanol 1G

Ethanol Part A

FAME 1G

70,000

FAME Part A

Biomethan ol Part A

60,000

MARKET ANALYSIS SUSTAINABLE ENERGY 2050. Scandinavian countries already have more ambitious targets in place. A proportion of the SAF content will represent synthetic jet kerosene, but the bulk will be a biofuel-based product.

FAME Part B

Biog as

With all forms of transportation looking to bio-components to supply an increasing share of market needs, the nature of the liquid fuels supply chain is set for big change. But a worry is starting to build – will there be enough feedstock available to meet demand not just for road transportation, but also for aviation, shipping and other consumers? At the moment there is no way of knowing, For instance, how much used cooking oil can be supplied? How much will the development of synthetic fuels contribute?

50,000 40,000 30,000 20,000

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

10,000

— Argus Consulting

Concerns about feedstock availability are real but really lie further down the road. In the meantime, storage operators need to face the fact that Europe is now firmly on a path to embrace the use of a wide range of bio-components and products, which means changes to business models and practices.

So far, the focus has been on introducing, promoting and forcing the use of biofuels in road transport. But this is changing rapidly. Increasingly politicians, regulators and consumers themselves are turning their attention to the use of these fuels in other sectors. Suppliers of heating oil and kerosene to residential and other users are investigating how to include biocomponents. Large industrial consumers – for instance mine operators around the world –are looking to source biodiesel for their operations. Most significantly,

For more information: Frans Osborne is the head of forecasting – consulting, at Argus Media. He gave a talk on this subject at the Tank Storage Conference and Exhibition 2021, organised by the Tank Storage Association (TSA), in Coventry, UK.

In aviation, sustainable aviation fuel (SAF) is fast becoming a reality. Despite its very high cost relative to conventional jet fuel, use is rising, mainly in Europe and North America. The EU has targeted SAF to represent 2% of fuel use in Europe by 2025, 5% by 2030 and 63% by

01 A theoretical take up of feedstock using cost of supply as the key criteria 02 European biofuel demand in road transportation, 2020-2040 03 Average shipment size of biofuels and feedstocks in Europe, 2019

Average shipment size of biofuels and feedstocks in Europe, 2019

’000t 4

HVO FAME

FAME 1G

NOT JUST ROAD TRANSPORT

In the marine sector, the International Maritime Organization (IMO) has set out two targets. IMO 2030 looks to achieve a 40% minimum reduction in CO2 emissions by 2030, through the adoption of new engine technologies, slower steaming and a switch from oil to LNG. IMO 2050 will see a 70% reduction and a 50% reduction in GHG emissions relative to 2008. This will require a wholesale shift into an entirely new generation of products, including biofuels, methanol, ammonia and hydrogen. It is too early to say which way the shipping industry will go, but it is clear that the fuel slate in 20 years will be very different.

PM E RME SM E UCOM E TME Ethanol Palm oil

Feedstocks

As European biofuel and feedstock demand increases rises, logistics companies in Europe will need to develop the capacity to handle these volumes, store them and pass them to blenders across the continent – while ensuring that differently sourced materials remain segregated. Unlike log range trade in conventional refined products, trade in these liquids involves much smaller parcel sizes. Figure 3 illustrates the broad range of shipment sizes across a wide range of biofuels and feedstock. On the other hand, there are limited restrictions to biofuel storage with current tank types able to handle the whole spectrum of fuels and feedstock, although biodiesel and vegetable oils typically require heating.

airlines and shipping operators are also grappling with the need to pursue a more carbon neutral way forward.

FAME Part B

As the most developed renewable energy market, Europe is already the focus of global trade in biofuels and feedstock. Estimated imports of renewable diesel (crop-based) and biodiesel (feedstockbased) is around 1 million tpa, mostly biodiesel and almost all sourced from Southeast Asia. Imports of bio-gasoline and ethanol are about 700,000 tpa, sourced mainly from the US and Brazil. Asia also supplies around 2 million tpa of used cooking oil to Europe and 500,000 tonnes of palm oil in the form of POME – palm oil itself is no longer an acceptable feedstock in Europe.

Soy oil Un specified veg oil UCO POM E — Argus Consulting

PAGE 49

MARKET ANALYSIS ENERGY TRANSITION

NAVIGATING THROUGH THE ENERGY TRANSITION IHS Markit’s Olivier Maronneaud looks at the effects of the energy transition on oil products, petrochemicals and subsequently tank storage companies

Header: Market analysis | Energy transition Headline: Navigating through the Energy Transition THE LAST 24 months and the companies and allowing them to perform around the world through legislation, IHS Markit’s Maronneaud of the energy transition on oil products, COVID-19 pandemic has been an Standfirst:reasonably wellOlivier in 2020. Occupancylooks at the effects fiscal incentives and bans, with the subsequently tank storage companies unprecedent period in many respects. petrochemicals rate, a and key indicator for tank operators aim of reducing greenhouse gas (GHG) For the first time in decades – except increased for most companies in 2020. emissions to limit the impact of human during war times – governments around activities on the environment and more an unprecedent period inthe many respects. For the world have imposed restrictions The last 24 months and the COVID-19 pandemic has been specifically on climate. Unlike brutal decades governments around the world have imposed THE in DRIVE FOR – except during war times –demand or closed borders, limiting domestic the first time shock we experienced in 2020, or closed borders, limiting domestic and international travel for holidays to or lead business. EMISSIONS REDUCTION and international travel for holidays or restrictions this transition is expected to a Fortunately improvements have allowed many of us to workdecline from home, avoiding daily commutes on business. Fortunately technological technological steady in the use of fossil fuels. Yet the outlook ahead is for change of a public transportation. improvements have allowed many of different nature. There is a drive to energy As highlighted by IHS Markit research us to work from home, avoiding daily supported governments in a recent article by Markit vicedisruptions Numeroustransition products, markets by and companies have beenand negatively impacted byIHS these major commutes on public transportation. and crude oil has probably been one of the most severely impacted commodities. With around two third of global demand for crude oil linked to transportation and mobility (as fuel into cars, trucks, planes, or Numerous products, markets and vessels), consumption fell dramatically. According to IHS Markit research, global demand for refined companies have been negatively products dropped by around 15% in 2020 compared to 2019, back to a level last seen in 2005/06. impacted by these major disruptions and Global refined product consumption 2005-21 01 crude oil has probably been one of the most severely impacted commodities. With around two third of global demand for crude oil linked to transportation and mobility (as fuel into cars, trucks, planes, or vessels), consumption fell dramatically. According to IHS Markit research, global demand for refined products dropped by around 15% in 2020 compared to 2019, back to a level last seen in 2005/06. Tank storage companies handling bulk liquids were able to navigate relatively well during this period. Significant volatility in oil prices and the resulting contango in 2020 incentivised oil majors, national oil companies, traders and other operators to store as much oil and refined products as possible, supporting revenues and profit generation for tank storage

PAGE 50

Tank storage companies handling bulk liquids were able to navigate relatively well during this period. Significant volatility in oil prices and the resulting contango in 2020 incentivised oil majors, national oil companies, traders and other operators to store as much oil and refined products as possible, supporting revenues and profit generation for tank storage companies and allowing them to perform reasonably well in 2020. Occupancy rate, a key indicator for tank operators increased for most companies in 2020.

MARKET ANALYSIS ENERGY TRANSITION president Daniel Yergin, it is difficult to grasp the full impact of the oil and gas industry on the wider economy and the transition to a net-zero economy is something that will take time and not happen overnight. The first changes are already visible, however. Taking the example of the automotive industry, the growth in electrical vehicle (EV) sales in the past two years has exceeded most expectations. Of course, it will take time before EVs account for over half of an entire vehicle fleet (as opposed to car sales) but the pledges taken by car manufacturers to stop internal combustion engine (ICE) vehicle sales in certain countries by 2030 or 2035 and the emergence of pure players such as Tesla or BYD of China are a good illustration of these changes. In some regions such as in West Europe, oil product consumption is expected to have peaked already and the refining industry has started its decline.

There is a drive to energy transition supported by governments around the world through legislation, fiscal incentives and bans paints and coatings in the construction and automotive industries and ingredients used in the pharmaceutical industry, products derived from the petrochemical industry are everywhere.

at an early stage of development with small scale and local initiatives raising questions around their competitiveness and economic viability. Tank storage companies may well have an important role to play in the future as these new industries and companies are looking for the right structure – indeed, storage companies have already been contacting IHS Markit to help them understand future opportunities in these emerging value chains.

The speed and the effect of the energy transition on the oil and refined product markets will differ significantly across Volumes are much smaller than most regions and West Europe will be at the refined products and bulk fuels. Similarly, forefront of these changes. Tank storage the diversity in chemical products often companies will be impacted and face means an increase in the complexity of differing challenges and opportunities storing and handling operations. Yet trade depending on their geographic footprint flows in bulk and specialty chemicals and product portfolio. Most will need to continue to increase and chemicals are review their operations and to develop usually considered as potential growth strategic responses tailored to each opportunities for tank operators. location with the objective to become an in this energy transition. research and in a recent article by IHS Markitenabler vice president Daniel Yergin, it

Like many industries Asother highlighted byand IHS Markit businesses, tank storage companies willimpact of the oil and gas industry on the wider economy and the transition to a is difficult to grasp the full ENERGY TRANSITION BENEFITS have to net-zero embark oneconomy a journey toisreduce something that will take time and not happen overnight. The first changes are already For more information: GHG emissions related to their day-to-day Storage companies could industry, also play anthe growth visible, however. Taking the example of the automotive in electrical vehicle (EV) sales operations. Yet the biggest challenge active role in the energy transition itself Olivier Maronneaud (Olivier. in the past 2 years has exceeded most expectations. Of course, it will take time before EVs account for companies will face is how to deal with and benefit from the new industries Maronneaud@ihsmarkit.com) is a to over half of an entire vehicle fleet (as opposed to car sales) but the pledges taken by car manufacturers the expected decline in the underlying that are being developed. The growth in director in IHS Markit’s chemical stop internal combustion engine (ICE) vehicle sales in certain countries by 2030 or 2035 and the emergence markets for oil products and liquid fuels biofuels and the conversion of existing consulting team, based in Paris. He ofstore. pure players such as Tesla or BYD China are a good illustration of these changes. In some regions that they assetsofand new refineries converting has extensive experience in leading such as in West Europe, oil-product consumption expected already and the refining vegetable oil and usediscooking oil to have peaked client projects on markets and supply industry has started its decline. into transportation fuels will require a chains and in strategy and transaction RESILIENT PETROCHEMICALS suitable supply chain and infrastructure support. Maronneaud has 10 years of both to secure access to feedstock Unlike most the petrochemical industry Likerefined manyproducts, other industries and businesses, tank storage companies will have to embark on aexperience journey and to distribute the finaloperations. products. TheYet the biggest demandreduce for petrochemicals has a background in economics, finance GHG emissions related toand their day-to-day challenge companies willand emergence economy been relatively the shock marketing. He and gave a talk on this subject face isresilient how totodeal with the expected declineofina hydrogen the underlying markets for oil products liquid fuels that supported with billions of dollars of experienced 2020. Figure 2 shows at V Med Hub Day in Port Tarragona, they instore. investments from public and private IHS Markit’s analysis of the impact on Spain, held on 18-19 November 2021. entities in several regions of the world demand for six key chemical building and the push towards a circular plastic blocks in 2020 and the outlook out to RESILIENT industry where chemical, rather than 2025. Chemicals have PETROCHEMICALS extremely diverse mechanical recycling of plastic waste end uses, and their applications are into liquid to serve Unlike most refinedmodern products, theback demand forhydrocarbons petrochemicals has been 01 relatively resilient to the shock deeply embedded throughout Global refined product consumption 2005-21 as raw material into refineries life. From plastics used in in consumer experienced 2020. Figure 2 shows IHS Markit’s analysisand of steam the impact on demand for six key chemical 02 Global annual growth trends for basic chemical crackers also be on the radar of extremely products or medical devices, through markets: 2020end vs historical forecast 5-year building blocks in 2020 and the outlook outshould to 2025. Chemicals have diverse uses,and and their averages storage companies. Both industries are applications are deeply embedded throughout modern life. From plastics used in consumer products or

medical devices, through paints and coatings in the construction and automotive industries and ingredients used in the pharmaceutical industry, products derived from the petrochemical industry are everywhere.

Global annual growth trends for basic chemical markets: 2020 vs historical and forecast 5-year averages

Volumes are much smaller than most refined products and bulk fuels. Similarly, the diversity in chemical products often means an increase in the complexity of storing and handling operations. Yet trade flows in PAGE 51 bulk and specialty chemicals continue to increase and chemicals are usually considered as potential growth opportunities for tank operators.

MARKET ANALYSIS ENERGY TRANSITION

COMPULSORY STOCKS FOR FUTURE ENERGY CARRIERS Ravi Bhatiani, executive director at FETSA, looks at how requirements for compulsory stocks needs to evolve with the energy transition THE STORAGE capacity of FETSA members also includes strategic reserves held for emergencies and supply disruptions under the Compulsory Stocks Obligation (CSO). Strategic reserves has been a prominent issue in political discussions over the last few months with strategic storage of gas, as well as future energy carriers being discussed by EU heads of state and strategic oil reserves being released by major non-OPEC economies to reduce fuel prices. Today the situation on strategic storage is relatively clear cut. There are international, EU and national obligations to ensure there are sufficient oil (and derived products) stocks for 90 days of continuous supply. This is a buffer, released in case of demand spikes, or supply side problems such as blockades or breakdowns of (amongst others) production and logistics infrastructure. These stocks tend to be government owned but stored at independent storage sites throughout Europe either above ground or underground in suitable geological features such as salt caverns. However, strategic reserves do not currently take into account the current gas crisis, or the energy transition and future energy carriers. For example, there are no EU mandated stocks for gas/LNG.

To manage such risks in the future, we believe that consideration should be given to the following steps to help to minimise and mitigate the effects of future disruptions to energy carriers used today, and in the future: 1. Expand the list of products where mandatory strategic storage is required. This should cover the energy carriers of the future as well as those in use today such as LNG. Rules on emergency/strategic storage should be reviewed periodically to ensure that the product mix stored reflects changing user demand. These reviews must allow sufficient time for tank storage companies to adapt infrastructure and where necessary build new infrastructure to handle the energy carriers that they are required to store.

There are no EU mandated stocks for current and future energy carriers, which will substitute crude oil and crude oil derived products such as biofuels and synthetic fuels.

2. Ensure sufficient public funds are available to make the investments needed. For example, current capacity for strategic storage of LNG is probably ten times less than what is needed for a strategic reserve. The return on investment to create such storage can only take place over a significant time period (e.g. 30 years). In 30 years times the EU will be climate neutral. Hence the investment case for a private investor does not exist. This market failure can only be remedied via public intervention.

The recent gas crisis caused by reduction of EU production, reduction of imports, lack of diversification in supply routes and energy carriers, no strategic reserves, a spike in the carbon price and a spike in demand, has shown what can happen when there is a lack of strategic storage to buffer supply and demand in volatile situations.

3. The state aid rules for the energy sector (the Energy Guidelines) should be evaluated and reformed to ensure that decommissioning of existing infrastructure, the renewal of existing infrastructure and the creation of new infrastructure in the area of storage for future energy carriers can be done. The potential

There are no EU mandated stocks for current and future energy carriers such as hydrogen or liquids that can be used to store hydrogen more easily such as ammonia and methanol.

PAGE 52

lack of demand for traditional storage despite the necessity to comply with compulsory storage obligations of strategic reserves; lack of return on investment/incentive for new infrastructure to store novel products, gas and LNG will be an obstacle to the creation of strategic reserves. 4. With regards to any compulsory stocking obligations, incentives wider than funding (facilitation of permits) should be made available to the bulk liquid storage sector to ensure that they can react quickly and appropriately to changing energy source demand. 5. Consideration should be given to the investment, and support, required by terminal operating companies to maintain legacy hydrocarbon-based energy carriers (and the necessary compulsory stocking of these substances) through the energy transition. Other issues to take into consideration are the composition of the strategic stocks (finished product and source/ crude product); ensuring rapid availability of the stocks; transparency and reporting on storage levels; release mechanisms; full product ownership by governments; and separation of commercial and strategic stocks. To ensure progress on such an ambitious programme, there needs to be much closer cooperation between public authorities and the private sector on the management and future planning of future strategic reserves. The current rules on strategic reserves work well but the industry needs to prepare for future storage needs and FETSA is working with EU authorities to drive the discussion forwards. For more information: This article was written by Ravi Bhatiani, Executive Director, FETSA. www.fetsa.eu

TECHNICAL FEATURES TECHNICAL NEWS

TECHNICAL NEWS: GLOBAL INDUSTRY UPDATES with a distinct drop in vibration levels. By evaluating the data from the RMS velocity and acceleration alongside the detailed information from the FFT, engineers realised this lower level of acceleration was occurring immediately after relubrication. Measuring low levels of acceleration would indicate correct lubrication. What was however seen was the sharp drop of vibration levels, followed by a quick rise of the vibration data collected, pointing to ‘over lubrication’, which could cause long-term machinery damage. This has now been recognised as an early warning signal and therefore been integrated into the day-to-day maintenance routine for TotalEnergies Antwerp. NEON’s expanded frequency range versus that of competitors’ made this visible. TotalEnergies

TOTALENERGIES CHOOSES NEON VIBRATION SENSORS TotalEnergies has selected TWTG’s NEON vibration sensors for Total Refinery Antwerp in Belgium. NEON vibration sensors send an RMS velocity value at 15 minutes intervals and can therefore give a good picture of the overall condition of an asset. Usually, vibration of assets is monitored manually at monthly intervals with the results analysed by an expert. The process is labour intensive and the gaps between monitoring can mean problems are not caught in time. Continual monitoring with IIoT-connected sensors such as the NEON vibration sensor can avoid these problems. Total Refinery Antwerp initially tested the NEON sensor on the bearing housing of the pump block within a pump installation. As well as the RMS velocity values every 15 minutes, the sensor transmits a full FFT measurement for deeper analytics every two days, although this is only advisable for short periods in these maintenance use cases. This full-spectrum, measurement allowed TotalEnergies to benefit from a complete view of the ongoing status of assets in the field and resulted in detailed information. Soon after installation, there was a change in the usual behaviour recorded,

EchoStar Mobile

ECHOSTAR MOBILE DESIGNS PANEUROPEAN LORAWAN NETWORK EchoStar Mobile, a subsidiary of satellite communications company EchoStar Corporation, has designed and introduced the first panEuropean S-Band LoRaWAN network using its own licenced spectrum. The private network offers added protection against cyber attack and requires less CAPEX investment than some alternatives. It can be used for mobile and fixed applications, and widely distributed sites. It provides real-time situational awareness and predictive maintenance capabilities, which can help to reduce wastage and downtime. The LoRaWAN network eliminates roaming agreements in Europe, the UK and Scandinavia, while providing reliable performance and enterprise-grade service levels due to the dedicated S-band spectrum.

‘As a member of the LoRa Alliance, EchoStar Mobile provides a LoRaWAN V1.0.4 compliant network and satellite enabled LoRa module that works seamlessly with the existing LoRaWAN ecosystem, making it easy to integrate our network into existing LoRaWAN solutions and the ideal technology choice for deployments where lack of coverage and infrastructure make deploying LoRaWAN problematic,’ says the company.

Azur Drones

AZUR DRONES SIGNS NEW AGREEMENT WITH TOTALENERGIES French company Azur Drones, which supplies drone-in-a-box solutions for surveillance and inspection, has signed a new framework agreement with TotalEnergies for the use of its drone technology at all the energy major’s sites. Azur first deployed its Skeyetech system at TotalEnergies’ Feyzin site in 2020. They carry out daily visualisation, sensor measurement and critical infrastructure inspection missions. Drone inspections reduce inspection costs, production downtime and response times, while making operations safer for employees. TotalEnergies has now validated the system, which Azur says confirms its added value for the energy sector. Earlier in 2021, Azur Drones announced that it had partnered with Oiltanking to use its state-of-the-art drone technology to aid inspection of Oiltanking Copenhagen Terminal, as part of the terminal’s digital transformation programme.

The dual-mode satellite and terrestrial module can connect to satellite or terrestrial networks as required. The seamless coverage and LoRaWAN network provides bi-directional, real time, connectivity for LoRA sensors across the coverage with no additional customer infrastructure required.

PAGE 53

TECHNICAL FEATURES TECHNICAL NEWS and pulse outputs as standard, 24V AC/DC power, one pulse, and one analogue output. The WIN Ultrasonic Flow Meter completes the AW-Lake family of flow meters for cooling circuits. The other meters are the TRG Standard Turbine Flow Meter for monitoring solvents and other viscosity fluids, the FlowStat Paddle Wheel Flow Meter for monitoring various fluids in applications such as chillers/cooling circuits and HVAC, and the Variable Area Flow Meter for monitoring pump performance and oil or water flows through cooling systems.

Implico

IMPLICO APPOINTS BRAUN AS CTO AND MD Eurotank

EUROTANK TO USE REGEN CLEANING ROBOT Non-person entry tank cleaning specialist company Re-Gen Robotics has licensed UK-based industrial fuel services company Eurotank to use its robots for cleaning horizontal and cylindrical tanks in forecourts, and fuel storage tanks. As part of the deal, Re-Gen has bought a large Ex Zone 0 rated robot from Eurotank, adding to their four bespoke tank cleaning systems already in fulltime operation. ‘Over the last two years the company has completed the first worldwide, 100% no man entry tank cleans for oil and gas majors such as Shell, Phillips 66 and Vermilion. We have eliminated over 10,000 hours of CSE in tank cleans performed, leading to a major reduction in both accidents and health and safety incidents in its sector,’ says Fintan Duffy, managing director of Re-Gen Robotics. ‘This is where our focus will remain, so we looked for a company that could operate our small robot in forecourts and fuel storage tanks. Eurotank are specialists in this field, their dedicated teams located throughout the UK have extensive experience inspecting and cleaning underground fuel systems, so the arrangement was a perfect fit for them.’ Re-Gen was recently awarded a patent for its robotic tank cleaning solution, and is the sole authorised provider of the technology in the UK.

PAGE 54

AW-Lake

AW-LAKE LAUNCHES WATER INLINE ULTRASONIC FLOW METER North American flow measurement technology firm AW-Lake has launched its new Water Inline (WIN) Ultrasonic Flow Meter for the flow measurement of cooling water, condensing water, and water/ glycol solutions. The flow meter is designed for process cooling applications including industrial cooling circuits. It is highly accurate (+1.0% of reading over 25:1 turndown, 100:1 total turndown) over a wide flow range with minimal pressure drop. The design incorporates two wetted ultrasonic transducers that face each other directly in the flow tube, reducing wear associated with moving parts for long-term reliability and low maintenance costs. This also maximises signal strength. The innovative flow tube design simplifies installation in limited straight runs and ensures no obstruction in the flow path. The WIN Ultrasonic Flow Meter operates safely when temporarily submerged in water and holds an IP 67 (NEMA 6) rating. An LCD display version comes with Modbus RTU communications as standard, providing an output of flow rate, volume total, run hours, alarms, and diagnostics. The display is detachable for remote mount installation up to 5’ (152 cm) from the sensor. The flow meter’s built-in data logger enables easy data access vis Modbus. Units without a display come with analogue

Global IT and digitalisation specialist Implico Group has appointed Dr Volker Braun as chief technical officer (CTO) and managing director (MD). Braun is a computer scientist and joins with the objective of refining and expanding Implico’s already diverse product portfolio, to help the company achieve its standardisation and cloudification goals, and alongside managerial team colleagues CEO Tim Hoffmeister and MD Thomas Ernst, to shape Implico’s transition to being a strong product company. Braun has 25 years of experience in developing software and IT projects. He has previously spent five years as the cofounder and CTO of a start-up focussing on technology transfer from university to industry, and also held a number of positions over 13 years at a leading IT solutions provider in the field of public transport. He has also managed IT projects in various major European cities including Vienna, Budapest and London.

TECHNICAL FEATURES TECHNICAL NEWS

Emerson

EMERSON INTRODUCES FIRST SIL 3-CERTIFIED VALVES US technology firm Emerson has introduced industry’s first valve assemblies that meet the design process requirements of Safety Integrity Level (SIL) 3 as specified in the International Electrotechnical Commission’s IEC 61508 standard. The Fisher Digital Isolation final element solutions are designed as shutdown valves in critical safety instrumented system (SIS) applications. The new valve assemblies avoid the need for customers to specify, procure and assemble all individual valve components. Emerson’s Digital Isolation provides an engineered shutdown valve specifically designed for a particular process, with the various components selected to satisfy the application requirements. The entire assembly is sold as a fully tested and certified unit, with a single serial number and documentation with the details of every part of the assembly. The probability of failure on demand rate is significantly lower due to the fact that it is built as a single unit by Emerson, and can be up to 50% lower than a unit built by an end user. Exida, a global leader in product certification and knowledge, has certified the system as a whole system, which meets its rigorous Remote Actuated Valve Assembly requirements. By using this certified assembly, SIS designers may realise a substantial

reduction in dangerous undetected failure rates (λDU). ‘In one example, an Emerson customer was hoping to achieve a six-year test interval for a SIL 2 safety interlock. When they performed a component SIL calculation on a standard shutdown valve, they could only achieve a SIL 1 level reliability at a six-year test interval. However, the Digital Isolation assembly exceeded SIL 2 requirements using the same components. This allowed the plant to safely extend their run time to six years, generating millions of dollars in additional revenue,’ says the company.

WaterJet Technology Association

THE WJTA ANNOUNCES NEW OFFICERS AND BOARD Bill McClister, an industry consultant based in La Porte, Texas, will be the new 2021-2023 chairman of the board at the WaterJet Technology Association (WJTA), following its recent elections. Jimmy Peck, general manager, at MPW Industrial Services has been elected president, and his vice-president is Kerry Siggins, CEO at StoneAge. The new secretary is James Ashmead, research investigator at DuPont Specialty Products, and Drew Waltenbaugh, president and CEO at NLB Corporation, will serve as treasurer. WJTA’s newly elected and re-elected board members are David Beckum,

CEO of Augusta Industrial Services, Jerry Carter, vice-president of sales and chief commercial officer at SPIR STAR, Bradley L Coble, hydroblasting specialist at Covestro, Dee Green, vice-president of operations at USA DeBusk, Bill Krupowicz, vice-president and general manager at Jetstream of Houston, and Bill Shaw, CSHO, SMS, vice president of employee development at Evergreen North America Industrial Services. Luis Garcia, president – Gulf Coast region at Northern Safety & Industrial, continues to serve a remaining term on the board of directors. The WJTA is a professional association providing service, education, and representation to members, including contractors, asset owners, manufacturers, researchers, and educators in the waterjetting, industrial cleaning, industrial vacuum equipment, and related industries.

Pond

ANDERSON PROMOTED TO VP OF ENERGY AT POND The Energy division of Pond, a US-based full-service engineering company, has promoted William Anderson to associate principal and vice-president of energy. Anderson will lead Pond’s Commercial and Utility business development teams and continue to serve energy clients worldwide. Pond Energy offers services including asset integrity, coatings, compliance, corrosion control, maintenance and engineering, procurement, construction management (EPCM) to energy and midstream companies. Anderson spent most of his career at Southern Company Gas before entering the pipeline construction industry and, more recently, the utility integrated supply and sales business. He brings experience and knowledge in supply chain, construction, operations, and regulatory compliance, providing valuable insight into the daily and strategic needs of industry clients. ‘Joining Pond has allowed for the opportunity to work shoulder-toshoulder with industry leading professionals to meet customer needs, protect the environment, and provide turnkey engineering solutions to build and improve the industry’s infrastructure. Pond’s commitment and dedication to their clients, their people, and their community is unwavering, and I’m excited to be a part of the team,’ says Anderson.

PAGE 55

TECHNICAL FLOW MEASUREMENT

NON-INVASIVE LIQUID FLOW MEASUREMENT IN TANK STORAGE Find out the benefits of Katronic’s non-invasive, clamp-on flow measurement devices A LARGE tank storage facility has many hundreds of metres of pipework for loading, unloading and transfer. Challenged with flow measurement within a pipe, particularly an existing pipe, what issues does the site engineer face? Key, obviously, is identifying a technology that will work. Any interruption to production and difficulties in re-establishing the conditions required to re-commence operations must also be considered. Invasive flow measurement instruments can be sites of contamination and even provide sites for microbial and algal growth to flourish. Non-invasive, clamp on flow measurement using ultrasonic techniques provides a well-proven method to measure reliably and repeatably without interrupting the process and without compromising the cleanliness of the pipe. There are also other interesting applications for non-invasive ultrasonic equipment that are nothing to do with flow measurement, but everything to do with supporting safe operations. HOW DOES NON-INVASIVE CLAMPON MEASUREMENT WORK? Regardless of whether the flowmeter is fixed to a wall or is a portable, batterypowered unit, flow is sensed by a pair of compact stainless steel transducers, which are fixed to the outside of the pipe by clamps or chains. These transducers pass an ultrasonic signal through the pipe walls and the liquid, with the ultrasonic pulses travelling both with and against the direction of flow. Each transducer sends and receives the ultrasonic ‘echoes’ that return through the liquid, which are then analysed within the flowmeter. Advanced signal processing compares the signal in each direction and calculates the flow velocity, the resulting measurement being displayed on the integral screen and transmitted via either analogue or digital signals. An easy way to think of the way ‘transit time’ measurement works is to imagine a rowing boat on a river. If the boat is rowed

PAGE 56

a known distance downstream and then back upstream, the time required differs. The difference between the upstream and downstream time varies in proportion to the speed of the river flow. In the same way the ultrasonic pulses are both emitted and detected by the pair of transducers a known distance apart, so reflections from the inside of the pipe are affected by the flow rate and so are measured both ‘upstream’ and ‘downstream’. The difference between upstream and downstream transit times can be a matter of nanoseconds, so the flow meter system considers a number of reflections, or ‘passes’ to increase the confidence in the measurement. The flowmeter analyses the reflected ultrasonic pulses, taking into consideration the effect the pipe material has on the flow, together with compensation for the velocity profile of the liquid medium. INSTALLATION The installation is very straightforward although, as with any instrument, there are certain guidelines that lead to an optimum result. The key is to have as

smooth a flow as possible within the pipe at the point at which the measurement is made, and there are guidelines for things like; distance from a pipe bend, or from a flange or pipe connection, all of which can disturb the flow. A good, modern clamp-on flowmeter will also have built-in tools that help to optimise the installation, maximising the signal strength and giving dynamic feedback to make sure that the transducers are accurately positioned on the pipe. In a Katronic KATflow flowmeter, the quick setup wizard handles virtually every application, while the Audible Positioning Assistant gives direct, immediate visual and audible feedback to make sure sensor positioning is perfect. KATflow flowmeters are all built on the same platform to the same standard, so once an operator has learnt to configure one flowmeter they can configure any model in the range. That also means that a quick test performed with a hand-held portable flowmeter guarantees the performance of a full installation of a fixed unit. The flowmeter makes a direct measurement of flow velocity which is then converted, based on the set up of

TECHNICAL FLOW MEASUREMENT the unit, into any other flow parameter required within the process, typically litres per second. Measurable flow rates range from 0.01 metres per second (m/s) all the way up to 25 m/s.

TYPICAL APPLICATIONS Broadly speaking, a non-invasive flow meter can be used in any application where a pipeline is filled with flowing liquid. The first question should always be ‘what are we trying to achieve?’ A clampon flowmeter offers a typical accuracy of 2% of flow velocity with repeatability of around 0.15%, although higher accuracy can be achieved if there is an opportunity to calibrate against the specific process. There may be critical measurements that need a different approach and the process owner will have to accept the inconvenience and cost of an invasive approach such as a Coriolis meter. For the majority of applications within a process environment, however, a couple of percent accuracy is adequate. The go-to technology for flow metering has, for many years, been the electromagnetic flowmeter (magflow). These are well-proven and effective, but to retrofit a unit means breaking into the pipework, interrupting the process for a number of hours, and then re-establishing plant integrity afterwards. A magflow meter also depends on the electrical conductivity of the liquid to work. CASE STUDY – HYDROCARBON BUNKERING Katronic’s partners in Benelux, U-F-M/ Ultrasonic Flow Management, used 13 Katronic KATflow 170 ATEX clamp-on flowmeters to help to make sure that off-loading of a variety of petrochemicals into a ‘hydrocarbon hotel’ was done as quickly, efficiently but above all, safely as possible. It is clearly critically important that a tanker is unloaded as quickly as possible, but that needs to be done within the limits of safe operation. As the rate of offload increases, so does the static electric charge in the line, increasing risks of sparks. The flow velocity has to be maintained at just below 3.5 m/s to maintain flow rate without risk of sparking, and the KATflow 170 use compact clamp-on transducers to measure the flow, signalling that velocity to the site control system which then modulates the pumped volume. Clamp-on flowmeters are versatile; pipe diameters up to as much as 6 m, any acoustically conductive pipe material including plastics, process temperatures up to 250˚C and so on. Katronic clamp-on flowmeters are available in both fixed and portable forms, portable versions providing

into a wheeled case with a battery power pack. The clamp-on transducers sense the flow velocity, and the case also includes a large siren and a warning light mounted to the outside of the case. Instant warning to the contractors if they need to stop work, self-contained and transportable wherever it is needed in the refinery. Clamp-on, non-invasive ultrasonic flowmeters are clean, easy to install and use, and versatile. The rise of the distributed factory made possible by Industry 4.0 and Industrial Internet of Things (IIoT) technologies is very relevant to tank storage operation. The increased demands of efficient storage throughput and effective interface with downstream processes and logistics also means that process measurement that can be easily incorporated into an existing process is becoming more and more essential. The clamp-on flowmeter is set to be an important part of that growth.

opportunities for temporary process monitoring, for example to verify pump performance, allowing service and maintenance to become predictive. To take a specific instance, there may be a regular maintenance schedule for a series of pumps. Some of those pumps will have run for many hours, others for far less, and the wear on the pumps may have been affected by the process conditions when they were on duty. With a simple clamp-on measurement, actual pump performance compared to expected throughput can be determined directly, so maintenance priorities can be decided on the basis of actual repair and service requirements rather than time.

For more information: www.katronic.com

01 KATronic KATflow 170 is an ATEX Zone 1 option for non-invasive flow measurement 02 Robust and easily deployed portable flowmeters give rapid results anywhere on site 03 Transportable UFM 70 Features a KATflow 150 for audible and visual warning of low flow rate

CASE STUDY – SYSTEM SAFETY FOR SITE MAINTENANCE In another application for U-F-M, Katronic flowmeters have been built into a mobile housing and are being used to confirm safe working by contractors at the largest Dutch refinery. When working on live pipelines, possibly to weld new sockets for invasive instrumentation or other attachments to the pipe, the process is not shut down and much of the cooling for the welding operation is provided by the liquid flow itself. Therefore, in what is almost a reverse of the requirement of the case study mentioned above, the key here is to maintain flow above a critical velocity. The refinery operators were dependent on safe working practises of their contractors and wanted to maintain control and provide their contractors with support for working safely. U-F-M created a solution based on a KATflow 150 fixed flowmeter to give an audible and visual warning if flow velocity falls below a critical value, which they call a UFM70. The KATflow 150 flowmeter is mounted

PAGE 57

TECHNICAL TANK ROOFS

RAISING THE ROOF Tank Storage Magazine takes a look back at some of the most impressive tank roofing projects over recent months DISCUS Project management of onsite tank work requires anticipation and adjustment to a myriad of variables. Every component of a project is a variable. Operational requirements are often the highest priority variable to the owner. In a recent project in Corpus Christi, Texas, US, Discus Engineered Products was contracted to provide the patented OpenRaft Aluminum Internal Floating Roof (AIFR). The project was a new terminal construction consisting of ten identical 180’ (55 m) diameter tanks. The owner put forth an exceptionally aggressive schedule that required close coordination with the tank builder. As tank construction was completed, AIFR construction was to begin immediately, meaning multiple crews would be working in multiple tanks simultaneously. Discus managed this schedule by using several separate adjustable size crews sequentially in leap-frog execution, to minimise the construction time.

overhead is required. When workers move up top, the work requires bending, squatting, and kneeling. Discus believes that advocating and encouraging warm-up exercises reduces injury risk and lessens the risk of falls. Discus has found subtle ways to improve the work environment inside a steel tank. For instance they don’t use coppus fans at their jobsites. Discus prefers to use pneumatic blower venturi air movers to reduce the overall noise level. This practice keeps the sound level lower in the tank allowing ease of communication, a factor inextricably linked to safety and efficiency. Some tasks are inherently noisy, such as tightening the plethora of bolts with battery operated impact wrenches. However, If you happen to visit the jobsite on a deck seam day, a relatively quiet component of deck assembly, you might hear music playing in the tank. Music, when appropriate during construction, seems to have a positive impact on morale, a factor linked to quality and efficiency.

Leapfrog Leapfrog execution involves two crews, working in close coordination on sequential tanks. The project starts with two full crews having a combination of general specialised workers. The Discus installation process involves assembling the entire deck from underneath prior to working on top of the deck. At completion of deck assembly in the first two tanks (1 & 2 on Figure 1), panel workers move on to other tanks, leaving specialised teams behind to finish the seam and seal work. These patrial crews then follow behind as the panel crew works ahead. This type of coordination is possible due to the design of the OpenRaft and Discus custom staging and cribbing system, which allows for full assembly to take place below the deck. This creates a safer work environment and allows for more effective and efficient work processes. Discus field practices are different. The crew generally starts the day with limbering and stretching exercises. A reasonably fit and flexible crew best accomplishes IFR assembly. Considering Discus OpenRaft IFR’s are assembled from underneath, extensive work

PAGE 58

‘The OpenRaft is specifically designed with access to all welded seams from the top side of the deck, facilitating vacuum box testing after erection’

Deck seam day A four member team systematically and efficiently works across the tank, with each craftsman having their own task. One working ahead, clamping seams tightly together, the second laying down a precise bead of caulk, the third laying down flat bar and the fourth installing and bolting clips (while the first then loops back to remove clamps and fix them ahead again). This same orchestrated teamwork is applied to the installation of welded deck seams. Upon completion of OpenRaft assembly, Discus field crews test every shop and field welded seam. API 650 Annex H H.6.4 – Any flotation compartment that is completely shop-fabricated or assembled in such a manner as to permit leak testing at the fabricating shop shall be leak tested at the shop as well as retested in the field by the floating roof erector for all accessible seams. In the field assembly yard or in the erected position, the erector shall spot leak test 10% of the flotation compartments, whether shop- or field-fabricated. The purchaser may select the specific compartments to test and the test location, based on his visual inspections for indications of damage or potential leaks. Any leaking compartments shall be repaired and re-tested by the roof manufacturer. If the testing finds any leaks in compartments tested, except

TECHNICAL TANK ROOFS for those damaged by shipping, then 100% of the roof compartments shall be leak tested.

Discus seams exposed to liquid are 100% shop tested to 4” (10 cm) water column and 100% field re-tested with 3-5 psi vacuum box (VB) or dye penetrant (PT) after erection is completed. Dsicus field welded deck seams that are exposed to vapours are 100% field tested with 3-5 psi vacuum box. The OpenRaft is specifically designed with access to all welded seams from the top side of the deck, facilitating vacuum box testing after erection. Patented open panel design In addition to vacuum box testing from the topside, in service inspections can easily be done from the topside of the deck. The Discus OpenRaft has no closed pontoons, no enclosed flotation honeycomb modules. DIiscus has no enclosed spaces to trap liquid or gases. Every Discus panel can be inspected from on top of the fixed roof. Where it all began When welded seams became popular on aluminum IFRs, they represented a new level of lower emissions. The preference for heavy steel construction was already becoming eclipsed by the advantages of lighter aluminium, capable of employing suspension systems in lieu of pipe legs.

But some issues – most problematically, trapped vapours – stubbornly persisted until the Discus OpenRaft. The Discus approach combined the strength of steel, with the lightness of aluminum, and a revolutionary shift in technology – the signature open panel design, optimising performance and economics. Beginning with the premise that an aluminum IFR should not contain enclosed spaces, David Rosenkrantz, founder of Discus Engineered Products, developed an innovative design that addressed performance issues and tank economics. ‘We know that pontoons and enclosed compartments trap noxious gasses that are explosive, carcinogenic and dangerous,’ he says. ‘A better design

would eliminate pontoons and enclosed compartments altogether.’ For more information: This article was written by Julie Anne Cormier and Bill Grimes. Contributors: Michael Sayre and Leah Wheeler. Contact: https:// discusengineeredproducts.us or email: info@DiscusEngineeredProducts.com

01 At completion of deck assembly in the first two tanks (1 & 2) panel workers move on to other tanks, leaving specialised teams behind to finish the seam and seal work 02 Keeping the sound levels lower in the tank enables better communication, a factor inextricably linked to safety and efficiency

J DE JONGE TANKX

Earlier this year TankX successfully replaced the two fixed cone tank roof tops at Netherlands-based terminal Haan Oil Storage. Haan Oil Storage decided to replace the tank tops of the 18 m diameter storage tanks after observing degradation of the materials during the inspection of roof plates and trusses. The roof was replaced without any incidents and within schedule. The outof-service time for the storage tanks were 18 days for construction, testing and commissioning. TankX designed a well detailed method statement with the shortest downtime with a competent team with a clear focus on safety and quality.

03 TankX successfully replacing the second tank roof top at Haan Oil Storage

PAGE 59

TECHNICAL TANK ROOFS VACONO At the end of 2018 German roof supplier Vacono received an order for 12 aluminium dome roofs (Vaconodomes) from US-based EPC provider Tarsco for a crude oil terminal in the Corpus Christi, Texas area. The project connects crude oil pipelines to waterfront storage, providing a critical link in the Texas distribution chain for worldwide exports. Each Vaconodome is 209’ (63.7 m) in diameter. Vacono is very familiar with US standards and the requirements of its clients and was able to make the structural analysis and the general arrangement drawings within just two weeks. Tarsco quickly gave their approval and Vacono was able to start the fabrication on time. After the on-schedule completion of the engineering process and the manufacturing kick-off, an additional 8 Vaconodomes were added to the order, bringing the total to 20 Vaconodomes.

WORLD LINK INDUSTRY Germany-based World Link Industry (WLI) was very much still influenced by the effects of the pandemic in 2021. The most critical issue was material availability and unpredictable price increases for raw materials. In addition a completely new factor surfaced: some key materials where simply not available. This fact also had a significant impact on its projects. All this in combination with the crisis in the logistics sector really put its project managers under an unprecedented ‘stress test’. Since about 90% of its business is generated in Asia, with key components being produced in Germany, the challenges were completely new to the company. Despite these obstacles, WLI was still able to install the following in China: five GRP composite external floating roofs, type NXT-FC-EFR and 13 GRP composite internal floating roofs, type NXF-FC-IFR. The company also managed to install its combination primary, secondary rim seal, type ONE with bi-directional wax scrapers. Plus type ONE-WX at 18 crude oil storage tanks ranging from 20,000 m² to 100,000 m³. At the beginning of 2021 WLI entered into a partnership with Houston-based DirecTank Environmental Products. This partnership resulted in a contract for one of its GRP composite external floating roofs, type NXT-FC-EFR in southeast Asia at a 20,000 m³ tank and a contract for one GRP composite internal floating roofs, type NXF-FC-IFR in North America for a 30,000 m³ tank.

PAGE 60

With the ongoing installation progress Tarsco gained a very rehearsed field crew for the installation of the Vaconodomes. The installation speed matched almost exactly the manufacturing speed at Vacono’s workshop, without compromising the quality of the field installation.

manufacturing it took only 12 months to complete the delivery. Project related topics and requests were managed and solved quickly and efficiently between Tarsco and Vacono.

Vacono was able to deliver a 209’ dome every 2.5 weeks. From the start of

04 20 Vaconodomes installed in Corpus Christi, Texas

In 2022 WLI is looking forward to strengthen its partnership with DirecTank Environmental Products and to develop new regions to make its products and services available in regions it hasn’t approached in the past. The volume of project for 2022 looks very promising and WLI is looking forward to the challenges ahead of them.

particularly since China has reduced production of magnesium. WLI will monitor these developments carefully and adapt its procurement strategy to ensure product availability for its customers during the ongoing pandemic.

The company expects the procurement of raw materials to remain a challenge,

05 Different stages of the GRP composite roof NXT-FC-IFR installation

Game changer. When you need lowest emissions, you need DISCUS OpenRaft™ SAFEST • STRO N G EST • LOW EST EMISS IO N S

Coming soon to a tank near you. www.DiscusEP.com 520-575-1443 info @ discusep.com

ADVERTORIAL

AI FOR OPTIMISING TERMINAL EFFICIENCY A liquid bulk terminal in the port of Antwerp asked Actemium to optimise its mechanism for tank pressure control. By using artificial intelligence to create an automated planning tool, the incinerator overload could be avoided and a more efficient way of working was guaranteed STANDARD TANK PRESSURE CONTROL THE MAIN function of a tank terminal is, of course, the storage of goods. For liquid chemicals, every tank contains a liquid and gas phase where the tank pressure needs to be monitored in order to avoid the creation of a vacuum or an overpressure. The most common operations are the loading and unloading of ships and trucks. These operations have an impact on the tank pressure and when the pressure exceeds a predetermined level, thermal oxidisers are used to incinerate gas from the tanks. However, these operations are not the only factor affecting tank pressure. Outside weather conditions also have an impact, especially during spring when nights are still cold, but days can be nice and sunny. The solar radiation increases the temperature inside the tank and consequently, the tank pressure as well. When the predetermined pressure threshold is reached, the incinerator is enabled to reduce the tank pressure to avoid overpressure. Since the temperature affects all tanks at the same time, this results in a huge demand for vapour extraction where the nominal capacity of the incinerator is usually insufficient. Subsequently, this can lead

to an overload of the incinerator which will go in shutdown with the risk of shutting down all ongoing terminal operations which entails high costs for the terminal. AUTOMATED PLANNING SOLUTION To solve these issues, Actemium started a co-creation trajectory with their client. Vapour extraction needs to be spread out over time so that the maximum capacity of the incinerator is not exceeded. To moderate this process, an automated planning tool for tank extraction is the solution. This planning tool is based on priorities and on tank pressure prediction. The challenge lies in the latter. To tackle this challenge, data was needed to be able to develop a machine learning algorithm which can predict the individual tank pressures. In order to obtain such an algorithm, a weather station was installed at the tank terminal to log the local measured weather data. Also, the different process parameters and tank pressures were logged. Next, a team of data analysts combined this input to develop and continuously optimise an artificial intelligence (AI) model which in turn can be applied, with the input of forecasted weather data, to predict the individual tank pressures.

By predicting these tank pressures, taking into account the weather conditions, the incinerator usage planning can be optimised. This will significantly reduce the probability of a complete shutdown and will facilitate overall operations. Furthermore, by anticipating future weather conditions, other saving opportunities arise as well. On the one hand, the terminal could minimise product loss by avoiding unnecessary incineration when the temperature, and thus pressure, would drop in the near future anyway. On the other hand, this solution could also avoid unneeded heating of the tank if the outside temperature would rise in the next few hours. More information and contact details on: www.actemium.be/en/market-segment/ liquid-bulk-tank-storage/offer/

WHAT CAN ACTEMIUM DO FOR YOU? Actemium is a brand of VINCI Energies 100% dedicated to industry, among which liquid bulk storage. We optimise your terminal with our Actemium Terminal Management System (ATMS). Fast changing customers or products, short-term contracts and specific legislations make it important for the tank terminal industry to be flexible and to keep track of everything. ATMS is an independent, completely integrated terminal automation system, covering all necessary elements for a most efficient terminal management from order-to-cash.

PAGE 62

TECHNICAL TOP INNOVATIONS 2021

WHAT ARE THE TOP TERMINAL INNOVATIONS FROM 2021? Tank Storage Magazine showcases the new technologies which have changed the tank storage sector

Assentech

AN ENVIRONMENTAL GAMECHANGER The ‘Vent-Less’ Breather Vent Test Bench It’s a sad reality that 90% of the breather vents tested do not meet industry standards (API 2000 and ISO 28300) when they leave the manufacturer. Assentech has developed the first fully automated mobile vent test bench with state-of-the-art technology that uses artificial intelligence (AI) to profile a vent function against algorithms that enable it to ‘think’ and react as it tests. Traditional manual testing requires a high level of skill and precise hand/eye coordination where two technicians can produce very different results from testing the same valve.

the cloud and transferred to a phone or tablet using a QR code. ‘We recently used this technology to assist a client in the biogas industry reduce excessive emissions and odours from one of their facilities and was under threat of closure,’ says Assentech managing director, Ewart Cox. ‘They had purchased low-cost vents that were not leak tight and were leaking huge volumes of biogas that consists of 60% methane, which is 36 times more damaging to the environment than CO2. ‘Our data showed that every low-cost vent on their site was leaking a cloud of biogas equivalent in volume to 112 double decker buses per year at a loss of £8,000 [€9,370] in methane. Assentech provided

a replacement vent design that reduced losses down to the equivalent of 0.11 of a double decker bus and £12. ‘The quality vent costs twice the price of the cheap vent but payback was achieved in 14 months and reduced emissions of global warming gas from 161 tonnes down to 0.158 tonnes. The UK Environment Agency congratulated us on our work.’ This technology will ensure end users, vent manufacturers, maintenance companies and regulators will have the knowledge and best available technique to establish breather vent functionality to keep the tank storage industry, safe, compliant and profitable. The information provided can be used for ESG reporting. www.assentech.co.uk

Development of the device started in 2018 after an old manual unit was stolen. Assentech can now produce verified test certificates that include the full pressure and flow data profile for both pressure and vacuum ports. This highly accurate information will give the leak rates of specific pressure ranges, such as 75% and 90% of set point, and at the required operating pressure if required. The test results can be instantly uploaded to PAGE 63

TECHNICAL TOP INNOVATIONS 2021

Confined Space Robotics

IMPROVING SAFETY, EFFICIENCY, AND QUALITY IN TANK MAINTENANCE ALPHA1 robot Confined Space Robotics (CSR) is a robotics solutions company that offers a technology that changes the industry approach to tank maintenance. CSR is dedicated to eliminating the need for humans to enter dangerous confined spaces such as tanks and vessels required in the production of petrochemicals and fertilisers. CSR’s technology offering includes robots for inspections, abrasive blasting, vacuuming, coatings applications and the exterior painting of storage vessels. CSR sells, leases, and rents its robots directly to asset owners or to service providers that conduct tank maintenance work for companies. CSR provides its customers a comprehensive training model on its robotic solutions all with the intent to perform project work with zero injuries. THE ALPHA1 ROBOT TECHNOLOGY The ALPHA1 robotic system reduces human exposure to confined spaces as

ECOM Instruments

SEEING THROUGH THE EYES OF THE MOBILE WORKER Visor-Ex 01 smart glasses The Pepperl+Fuchs brand ECOM Instruments, together with its cooperation partner Iristick, is introducing Visor-Ex 01 smart glasses for industrial use in hazardous areas. The intelligent wearable, weighing just 180 g, combines high camera/display quality and reliable communication features in an ergonomic design for the user’s utmost comfort. This provides mobile workers with an optimal companion for tasks that require hands-free use as well as continuous communications, such as remote expert support. A total of three integrated cameras transform Visor-Ex 01 into the remote expert’s bionic eye. Two 16-megapixel cameras are centrally positioned to depict the wearer’s natural field of vision – this way remote support views what is happening from the same angle and perspective as the mobile worker. PAGE 64

well as improving the quality and cost effectiveness of abrasive blasting and coating. The ALPHA1 is a 4 – component robotic solution. The articulated arm is a motorised, 6 degree of freedom robot that is programmed to move a blast nozzle or a paint gun within a confined space. The robotic arm weighs 55 lb (25 kg) with a length of 4.3 ft (1.3 m) when fully extended which allows it to fit through openings as small as 18 inches (45.7 cm). Since robots do not get tired or fatigued like humans, the ALPHA1 has consistently outperformed its human counterparts in terms of speed, quality, and consistency. Proper surface

A secondary camera offers a 6x optical zoom for zooming without loss of quality and scanning of barcodes and QR codes. The system utilises the ECOM SmartEx 02 smartphone for hazardous areas as a computing unit with LTE connectivity and a pocket unit with a replaceable battery for power supply, an intelligent ecosystem is created for a wide range of application scenarios in the industrial sector. The distribution of functions across the individual system components helps to minimise the weight of the headset unit – without compromising on performance, connectivity or battery

preparation is critical in achieving proper bonding between the coating material and the steel surface. The ALPHA1 system ensures consistency in the quality of the surface preparation for optimal bonding. The ALPHA1 has successfully proven to reduce the man hours within a confined space by up to 95% during a project and 100% during the blasting operation. CSR’s site-based case studies also reveal that projects timelines are reduced by up to 50% thereby reducing customer asset downtime. www.csrrobotics.com

life. By connecting to the Smart-Ex 02, users can continue to use their tried-and-tested smartphone for harsh environmental conditions without restriction and benefit from all the advantages and security features and controls of the Android 11 operating system, including over-the-air updates, ease of use and TCO. Visor-Ex 01 will be certified for ATEX/ IECEx Zone 1/21 and 2/22 as well as NEC/CEC Division 1 and 2 and will have protection class IP68. It can be used within a temperature range of -20 to +60 °C. www.ecom-ex.com www.pepperl-fuchs.com

TECHNICAL TOP INNOVATIONS 2021

without the need to climb a tank or enter the facility. Hawk’s CGR PoE can connect to an online portal, the HawkEye365, which can monitor multiple tanks worldwide in real-time. The portal provides accessibility to critical data such as volume, space, material height, historical trending, alarms and alerts, sensor setup and diagnostics. Plant level operator screens are customised to the company’s specifications to include control room level and operations level interface screens. In the graphical user interface permissions can be set for different tiers such as plant-level, finance, or executive level.

a major US cattle feed company in 2021. The company came to Hawk to implement smart technologies in order to increase business efficiencies and decrease human error. Hawk recommend the CGR PoE level transmitter. The units’ work to control inventory have drastically cut costs for the livestock feed company, ranging from reducing installation costs to maximising production efficiencies. By implementing PoE with AI, personnel can access real-time data on process measurements and machine function from their PC, tablet, or smartphone. The cattle feed company also receives detailed reports that inform operations how their process is performing, in realtime and over time. The CGR PoE system informs accounting and administration important cost accounting detail, when to purchase, what to purchase and tracks commodity trading with inventory availability. The AI components will make predictions as to when a breakdown is likely to happen, allowing maintenance to plan a scheduled outage versus the inevitable costly emergency shutdown. They have been so satisfied with the results that they are planning to implement many more systems company-wide.

Hawk’s PoE technology drastically increased business efficiencies at

https://www.hawkmeasurement. com/product/CGR/

Hawk Measurement

INNOVATIVE LEVEL MEASUREMENT Centurion Guided Radar (CGR) Level Transmitter Hawk Measurement’s Centurion Guided Radar (CGR) Level Transmitter is ideal for the measurement of liquids, sludge, powders and granules to a range of 38 m for level and interface measurement. This technology is not affected by pressure, temperature, viscosity, vacuum, foam, dust, changes in dielectric constant or coating of the probe. Hawk’s CGR recently won the prestigious Chemical Processing 2021 Vaaler Awards. It also received honorable mention in the 2021 Process Instrumentation Product Innovation Awards. Hawk’s CGR is the first and only guided wave radar on the market to feature Power over Ethernet (PoE) communications, allowing secure inplant and remote monitoring, as well as remote sensor setup, diagnostics and troubleshooting abilities. If troubleshooting is required, the CGR PoE will communicate to remote service technicians for off-site diagnostics, sensor health and reconfiguration,

Qlayers

HOW ARE YOUR STORAGE TANKS COATED? 10Q paint robot All storage tanks, regardless of size, material or location, require high-quality protective coating layers to prevent corrosion damage. For a long time now, these large-scale assets have been coated with the same old conventional, time-consuming, expensive methods such as rollers and spray guns. Painters must work at dangerous heights on scaffoldings. Furthermore, applying high-quality coating layers has a significant impact on the tanks’ lifespan and long-term maintenance costs. Understanding the need for a change, Qlayers made it its mission to revolutionise the coating industry. DISRUPTING THE WORLD OF COATING STORAGE TANKS Qlayers is a Dutch high-tech start-up developing innovative robotic technology to automate the industrial coating process of large infrastructures such as storage tanks, wind turbine blades

and ships. The 10Q robot developed by Qlayers is the industry’s first automated coating crawler that paints the steel storage tanks with high precision, zeroemission and a consistent speed of up to 200 m2/h. Qlayers’ robots are equipped with a patented spray shielding system that prevents toxic paint particles (volatile organic compounds – VOCs) from being released into the air, thus making the process more environmentally friendly. In addition, due to the smart design of the print head, the transfer efficiency during the coating procedure is increased to up to 90% with a guaranteed consistent result in a wind force of up to 4 on the Beaufort Scale. The consistent automated performance also allows better prediction of degradation, and therefore reduces maintenance and long-term costs. BOOSTING THE EFFICIENCY AND SAFETY OF COATING OPERATIONS The robots come with dedicated control software that enables clients to have full control over every aspect of the automated painting process by generating real-time reports on parameters such as layer thickness, temperature, and humidity. Moreover,

coating personnel can operate the robot from a safe distance on the ground with a user-friendly controller module and the touch of a button. These features give customers total control and flexibility while reducing the number of working hours on the suspended scaffolding and dangerous heights by up to 80%. CREATING VALUE FOR THE ASSET OWNERS AND COATING COMPANIES Qlayers’ novel technology offers asset owners and coating contractors all the advantages that automation brings and more. The safe, efficient, and reliable solution maintains consistent coating quality while minimising human and environmental risk. www.qlayers.com PAGE 65

TECHNICAL TOP INNOVATIONS 2021

Port+

OPTIMISING TANKER PORT CALLS THROUGH DATA SHARING AND DIGITAL COLLABORATION Qronoport A new digital collaborative platform by Port+, called Qronoport, improves the planning, visibility and overall predictability of tanker port calls. The increased predictability will decrease the waste in between activities and hence decrease the turnaround times for vessels in the port. Research by Port+ has found that a lot of time is wasted during port calls, especially with tankers. In the Port of Antwerp, a tanker will on average spend 2.5 days in the port. On average, 50% of a tanker port call is spent waiting. 25% of the time is spent waiting at anchorage, the other 25% a tanker is waiting at berth. This means that there are no operational activities taking place. Even at efficient ports like the Port of Antwerp, there is a lot of room for improvement. Qronoport facilitates operational data sharing and more efficient digital communication between stakeholders

Re-Gen Robotics

TRANSFORMING NON-PERSON ENTRY ROBOTIC TANK CLEANING Robotic tank cleaning service After years of research, Re-Gen Robotics launched a bespoke robotic cleaning service that eradicates the need for human entry into tanks. Their patented solutions ensure workers aren’t endangered by operations carried out in hazardous confined space environments. Re-Gen Robotics was awarded a UK Patent No. 2585311B, ‘Zero entry sediment removal from storage tanks’ in May 2021, for its fully contained robotic tank cleaning solution. It is the sole authorised provider of this innovative technology in the UK. The patent covers its all-in-one mobile vacuum tanker and apparatus, integrated cranage system, custom designed external and internal hydraulic ramps and ancillary equipment for its robots. So far, they have eliminated 10,000+ hours of confined space cleaning, leading

PAGE 66

involved in the ‘pitstop’ of a tanker. The platform ingests data from various sources. Data from port community systems and AIS data is combined with operational data and timestamps about planned, ongoing and finished activities directly from the stakeholders. The combination of all this data gives stakeholders in the process a highly accurate and active overview of the port call – both planned, actual and completed – increasing the efficiency of their planning and operations. Terminals are one of the key stakeholders in the port call process. Many of the other port call stakeholders rely on information from the terminal to create and adapt their own planning. By

to an overall reduction in both accidents and health and safety incidents onsite. Over 30 tanks consisting of white oil, black oil and distillate tanks in gas plants have been cleaned and they have completed the first worldwide, 100% non-person entry tank cleans for oil majors such as Shell, P66 and Vermilion. Re-Gen Robotics offers four main robotic tank cleaning services including fixed roof, floating roof, heavy fuel oil and coned floor tank cleaning. Their unique, closed loop cleaning system can reduce cleaning time by up to 80%, significantly decreasing downtime and loss of production. Service solutions are based

sharing data from the terminal through one platform, other stakeholders will proactively get new information, allowing them to adapt and optimise their own planning and operations. The terminal in return will have access to operational data from the other stakeholders (surveyors, ship operators, etc.) which will help the terminal to optimise its berth and jetty planning and operations. And the effect of optimising port calls doesn’t stop at the terminal or in a port. Port call optimisation leads to voyage optimisation. And combining port call and voyage optimisation is the foundation for lowering fuel consumption and carbon emissions in the maritime industry. www.qronoport.com

on existing and evolving customer needs and can be adapted to suit individual client needs and time frames. Product innovation includes an offset suction head to clean under water suction pipes around the external diameter of tanks. This tool alone has decreased tank cleaning time by 10-12%. A 360-degree full coverage washing head, was developed with the capability to wash the walls and the roof of tanks and affords faster turnaround times by 10% on floating roof tanks. Re-Gen Robotics’ new tank localisation mapping system will be brought into service in Q1 2022. The inspection analytics software automates monitoring of the tank infrastructure giving up to date, reliable data. The company has recently completed on its new state-ofthe-art headquarters, which includes R&D facilities to further develop their equipment and service bays for robotic cleaning systems and tankers. Several new patents are due to be introduced, to carry out more diverse tasks remotely. By Q1 2022 Re-Gen Robotics will have four systems in operation with the capacity to roll out their tank cleaning service and technology to customers worldwide. www.regenrobotics.com

TECHNICAL TOP INNOVATIONS 2021

ScoutDI

CONFINED SPACE INSPECTION WITH SITUATIONAL AWARENESS AND LIVE STREAMING Scout 137 drone system ScoutDI offers an end-to-end, fully digitalised data solution for inspection of confined spaces, for example maritime vessels and bulk liquid storage tanks. The company’s integrated inspection system has two main parts: 1. The Scout 137 – a robust, tethered drone that gathers location-tagged visual inspection footage, from spaces where human access will be unsafe, time-consuming, and expensive.

line of sight. The system is designed for GPS-denied locations and uses an onboard Lidar to generate a 3D point cloud map of the interior. Autonomy is provided in terms of position stability and robust anti-collision functionality. This allows the drone to navigate safely in confined spaces while keeping the operator in control. The situational awareness provided by the 3D point cloud map is an indispensable visual aid allowing the operator to understand the drone’s location inside the asset. Without it, the operator would rely solely on the camera feed or line-of-sight to navigate. It would not be possible to see what’s behind or next to the drone or assess how far it is from the nearest obstacle.

In summary, ScoutDI believe that the solution they provide is comprehensive beyond the current norm.

ScoutDI’s drone is tethered, which allows unlimited flight time and a robust data connection throughout the inspection. No need to worry about loss of data connection during flights beyond visual

SOPHISTICATED IOT VIBRATION MONITORING NEON Vibration Sensor TWTG’s NEON Vibration Sensor has been developed in close collaboration with two global oil and gas majors, receiving input directly from rotating engineers. This new wireless IoT sensor is the most sophisticated in the NEON product line.

In the Scout Portal, live location-tagged inspection data provides insight to the execution and findings of the inspection. Remote third parties can follow the inspection job in a split-screen view with live camera footage and the 3D map side by side, enjoying the same situational awareness mentioned above. The 3D map can be zoomed, panned, and rotated independently of the drone’s heading. Beyond live remote participation, the Scout Portal allows high-resolution storage and instant replays of inspection jobs. There’s also an API to support existing asset integrity systems, digital twins etc. Over time, trend analysis and other data processing will also be offered.

2. The Scout Portal – an online inspection data service for inspection livestreaming, instant replays, reporting plus data management and -integration.

TWTG

Connecting the drone system to the internet can be done either using the embedded 4G router or simply by connecting to an on-site network. This allows off-site experts and operations teams to join the inspection remotely via the Scout Portal: ScoutDI’s online inspection portal.

www.scoutdi.com

analyse historical data, look for clues, anomalies, or sequences of events that occurred as precursors to an incident and start to learn the sometimes seemingly unconnected tell-tale markers to avoid recurrences. Beautifully designed, IEXEx / ATEX certified devices, NEON products are built with the quality components and materials necessary to meet the

stringent levels essential for use in the oil and gas environments. A crucial feature of the vibration sensor is its ability to transmit frequency spectrum via LoRaWAN. This functionality is a gamechanger, eagerly awaited by engineers – a feat never achieved before by a LoRaWAN sensor. www.twtg.io

Vibration sensors work by detecting bearing faults on pumps, motors or other rotating equipment early, allowing operators to act swiftly before any serious issues arise, so by reducing downtime and eliminating potentially hazardous situations. The vibration sensor is designed to be retrofitted to existing machinery and enable previously passive objects to achieve ‘smart’ abilities and accordingly, contribute data. Data enables engineers to learn about the wellbeing of a facility and make proactive decisions concerning maintenance or replacement of equipment. Over time, harvested data will enable engineers to PAGE 67

TECHNICAL TANK LININGS

25 YEARS OF INNOVATION Read the story of Abfad’s double-skin linings, which protect tanks from corrosion and offer integrity monitoring IN 2021, Abfad celebrated 25 years of providing access and corrosion prevention and monitoring solutions to the oil and gas and power generation industries. Their award winning Fuelvac double skin lining system has undergone several design and development changes over this time and continues to provide an answer to the protection and monitoring of above- and underground storage tanks.

THE CREATION OF ABFAD Abfad was formed in 1996 by directors Alan Fada and Chris Haritou, with the vision of providing high quality trade experienced industrial coating rope access personnel, which was eventually extended to provide other trade services for construction and maintenance. A high level of specialist coating knowledge existed within the business which led the company to develop the award winning Fuelvac double skin tank lining system. Abfad started out with five personnel, an old van and two bags of rope access equipment as a specialist abseiling coating company in 1996. Both directors had experience working in the industry offshore and onshore in the UK and Europe and Abfad quickly established synergy within shipyards providing specialist coating skills whilst working at height, without the need for scaffolding, platforms, or cradles. SOLVENT-FREE TANK LINING SPECIALISTS In the early 2000s Abfad was approached by several large oil and gas companies to provide long lasting solvent-free coating protection for their underground storage tanks in the UK. In 2002 BP requested refurbishment of their fuel forecourt underground storage tanks nationally within the UK. Abfad had four lining teams with plant and equipment set up to refurbish several of BP’s network of tanks throughout the UK.

from the ground or replaced with new constructed steel or fibreglass tanks. This can be for various reasons such as their location, they may be in busy built-up areas or where there are existing tunnels or waterways located, or in other locations where planning permission would not be granted. Cost is also a deciding factor for operators as installing a double skin lining system is a cheaper solution than storage tank replacement. From this Fuelvac was created. FUELVAC DOUBLE SKIN LINING SYSTEM Fuelvac is Abfad’s innovative double skin lining system and uses non-toxic, environmentally friendly materials including solvent free coating for final protection of stored cargo.

The coating services provided by Abfad went well and BP requested that they supply a double skin liner for existing single wall steel and fibreglass storage tanks. This would need to be monitored using vacuum pressure transducer valves to comply with UK legislation passed in 1990.

Fuelvac complies with COMAH regulations which set down rules for the prevention of major accidents involving dangerous substances, and to seek to limit the consequences for human health and environmental incidents. Fuelvac is certified to the European Standard BS EN 13160-7 and has been successfully operating in above and underground storage tanks since 2007.

Double skin liners are usually installed in storage tanks that cannot be removed

Where other double skin lining systems in the world use glass-reinforced

PAGE 68

plastic (GRP) or solvented resins which are hazardous for applicators and environment, Fuelvac is completely solvent-free and non-hazardous. The existing GRP systems on the market tend to be wet lay-up systems, meaning that the double skin layers are inserted into wet glass reinforced plastic resin. Fumes from this process cause damage to applicators, the public and the environment and are present throughout the whole process, which can last weeks or months as the resins are used daily. Fuelvac is a sprayed solvent-free epoxy coating system. When coating a storage tank with a solvent-free, high solid epoxy resin a greater level of thickness can be achieved per application cycle. For this reason, these are typically one coat systems. Being able to apply the coating in a single application to achieve the required film thickness is a huge time saver and provides the best opportunity for longterm storage tank protection for operators. With the correct preparation, solventfree epoxies have excellent adhesion to the steel and will dry to form a hard tile-like finish. This gives the storage tank a ‘second skin’ which is resistant to sulphate-reducing bacteria corrosion, extending the service life of the tank. Solvent-free epoxies meet all the performance criteria of traditional solvent-based coatings, but in a more

TECHNICAL TANK LININGS environmentally friendly way with the added benefit of long-term protection for steel and concrete. WHAT DOES FUELVAC DO? Fuelvac double skin tank liner prevents corrosion from impacting on the steel of the storage tank, whilst at the same time providing a safety net if there is ever a breach, so stored product will remain safely contained. Fuelvac is a fully monitored system, containing an interstice (space) between the two layers of protective solvent-free resin, through which a vacuum is pulled and held. This vacuum alerts the client if a breach occurs, either internally or externally, as any breach to the tank would cause a drop in the vacuum which in turn would cause the system to alarm. The Fuelvac system can be installed in both above and below ground tanks of any size and enables the safe and successful storage of hazardous liquids including crude oil, petroleum products and ethanol. THE DEVELOPMENT OF FUELVAC OVER THE YEARS Over the years Fuelvac has consistently been developed and improved upon. The first double skin liners which would later become the Fuelvac system used a solvent-free epoxy coating for the protection of the tank steel, then once the coating was applied, a series of plastic sheets were fixed to the wall, floor and roof areas of the tank with hot melt adhesive. The idea was to create a tank within a tank and enable a space for monitoring between the original steel wall and the new plastic sheeting. The second version of the double skin lining system used similar plastic sheeting

as the first system but the initial solventfree coating onto the steel was changed to be a solvent-free polyurethane paint. This system was installed in several sites for Network Rail throughout the UK. After this the system was further developed to use polyvinylidene fluoride (PVDF), which is a chemical-resistant plastic ideally suited for the oil and gas industry. The coating used for this system was changed back to an epoxy solventfree coating due to the changes in fuel additives and the start of biofuels. This system was used by Total UK in 2005 and installed in multiple sites across the UK. The fourth and current version of the Fuelvac system solved the problems with the speed at which the system could be installed. Although all the previous versions of the lining system were successful, due to the unknown condition of the steel (which was often buckled and dented and could not be seen until the storage tanks were emptied, degassed, and cleaned) it was difficult to install plastic sheeting and Abfad wanted to reduce the amount of time it took to install over the defects within the tank steel. It was determined that a coating system with layers of

materials which were non-hazardous to install and could create a monitoring space was needed. This system took until 2007 to develop where it was installed for BP, Total and many other companies in the oil and gas industry. The monitoring space for this system is 1 mm as opposed to the 10 mm of space that was used in the first system. The space depth for monitoring the tank is important as it reduces the amount of stored fuel within the storage tanks which can be sold. The monitoring space needs to be created from a material that maintains an open flow of air or liquid, even when compressed by the weight of the stored product. This is important as any compression of the interstitial space will mean parts of the storage tank are not monitored by the vacuum pressure. Therefore, the space created between the original steel wall and the double skin liner will not be able to provide an alarm should a breach occur in the sections which have been compressed. Many types of materials were researched along with the thickness of the material layers for this system. The adhesion of the solvent free epoxy coatings to the materials and the ability to create strength within the liner were key factors in its development. This current version of the Fuelvac double skin lining system has been successfully installed and is operating in over 180 storage tanks in the UK. ACCREDITATIONS AND AWARDS A milestone for Fuelvac and Abfad was reached in April 2018 as Fuelvac was accredited by TUV NORD to the European Double Skin Storage Tank Lining Standard BS EN 13160-7. Abfad believe Fuelvac is the only accredited solvent free double skin lining system in the world. So successful was the development and advancement of Fuelvac that in 2019 it won first place in the Advanced Manufacturing category at the North East Innovation Awards in the UK against some stiff competition in a packed category of innovative companies. For more information: www.abfad.co.uk

01 Above ground storage tank with Fuelvac double skin lining system installed 02 Double skin materials installed in underground storage tank ready for final coating application 03 Double skin liner installation in above ground storage tank for Network Rail – installation of monitoring devices

PAGE 69

TECHNICAL SUSTAINABILITY

REDUCING FUGITIVE EMISSIONS Assentech’s MD Ewart Cox explains why testing breather vents is so important to ensure ESG compliance AS THE WORLD comes to terms with the consequences of climate change all forward thinking businesses are forming environmental policies and adapting to meet the expectations of investors, the pubic and the regulators.

Good corporate governance is at the centre of all successful businesses. A strong lead has been taken by the four biggest accountancy firms to create structure of reporting that reflects the Paris Agreement at COP21 in 2015. The target of this agreement is to curb global warming to less than 1.5°C compared to pre-industrial levels by mid-century. This long-term temperature goal requires reaching global peaking of greenhouse gas emissions as soon as possible. It is from these leading accountancy firms that the acronym ESG has arisen. That is environmental, social and governance management and is has largely been adopted by the majority of publicly listed businesses around the world as a core value for the present and into the future. Mark Carney, UN envoy for climate change has stated that ‘those companies who finance and invest in adapting will be seen as part of the solution and will be rewarded whereas those that do not adapt or invest will be seen as part of the problem and will be punished.’ Companies in the tank storage industry have an excellent framework of best practice to reduce emissions. All international valve standards have leak

rate test protocols that can be used to prevent fugitive emissions. The good news is that reducing these emissions results in better retention of volatile products in storage facilities so quality is maintained. Additional benefits include a safer, cleaner, less odorous working environment for staff and neighbours. International standards like API2000 are

viewed as best practice in atmospheric and low pressure storage tank venting design, manufacture and application since the 1960s. Calibration and leak testing has formed a part of this standard right from the beginning. Initially as a safety bulleting and since 2008 it has been defined in section 5.4 as a production test that all valves must be subjected to prior to shipment to the customer. This test and the certificate issued for every valve forms a critical step in a Hazop review to confirm functionality of the valve and that it has been assembled correctly. Without this the customer/ operator has no confirmation that the valve will work until it is placed on the tank which in most cases is a £1 million (€1.17 million) plus asset that is essential to the operation. If the valve has been fitted with the wrong weights or pressure and vacuum pallets swapped by mistake the first indication of an issue will be when the tank collapses. In addition to basic functional safety this test certificate can now be used to

PAGE 70

TECHNICAL SUSTAINABILITY demonstrate a company’s route to net zero. Assentech has recognised the importance of this data for companies seeking to demonstrate incremental improvement as part of their ISO14001 environmental management policy. A shocking fact is that the majority of tank breather valve manufacturers do little or no individual valve testing or certification to section 5.4 prior to shipment. It is the responsibility of the buyer to insist on an individual leak test certificate. A general certificate of conformity does not prove individual valve performance and cannot be used as part of a sustainability program. These manufacturers are well aware of their responsibilities within the standards but have decided to cut costs in an area that has been hitherto undetected. They are well versed in avoiding the subject so persevere because ultimately it is the end user that takes responsibility for integrity of equipment used on their site. UK-based equipment specialist Assentech has achieved the highest

This produces highly accurate and repeatable results in a fraction of the time taken by a manual test

decrease flow through automatic flow controllers. This produces highly accurate and repeatable results in a fraction of the time taken by a manual test. The control system has an artificial brain that instantly profiles the performance of a valve based on its reactions to changes in flow.

possible level of testing a certification in the tank breather valve industry through the use of state-of-the-art technology and artificial intelligence.

‘It’s fascinating to see the bench produce results faster every time it tests the same valve,’ Cox adds. ‘All decision making is built into the programming so there is no need for the technician to have detailed knowledge of the standards. Because the results cannot be influenced by the operator the results are 100% verified. This is a revolution in valve testing.’

‘Testing breather vents is surprising challenging when done manually,’ says Assentech’s MD Ewart Cox. ‘Because these tests are conducted on modulating valves the balance of flow control and measurement of change in pressure retained requires focus and detailed knowledge of the standards, and integrity of the test technician. ‘ Assentech’s automatic test technology enables the machine to take pressure readings every 200 milliseconds referencing complex algorithms to make decisions on whether to increase or

Certificates are instantly transferrable to a smart phone by clicking on the QR code. With the bench officially launched in August 2021 Assentech is receiving a lot of interest, enquiries and orders from service companies and operators seeking to reduce emissions and meet ESG commitments. ‘We recently purchased two brand new valves for test R&D purposes,’ explains Cox. The bench is programmed to certify the leak rate over a 12 month period in addition to the standard parameters. These valves were very different in terms of performance but looked very similar. One 2” (5 cm) valve produced a leak rate equivalent to 1738 m³/year and the other 3” valve only leaked 4 m³/year. ‘That is a huge difference and choosing the right valve could make a significant benefit to both the operators profitability and the environment,’ adds Cox. Some companies struggle to reduce emissions due to difficulties in manufacturing or the potential return on investment. Assentech’s solution produces a roadmap for huge reductions in emissions and improved profitability. In many cases payback is in less than 15 months and compliance exceeds the regulators expectations. A true win/win solution. This reduction in emissions could also be offset against more difficult challenges that may take longer to resolve. For more information: This article was written by Ewart Cox, managing director, Assentech: www.assentech.co.uk

01 Assentech’s managing director, Ewart Cox 02 Revolutionary range of Vent-Less test benches 03 Illustrative Vent-Less test certificate with leakage rate for ESG reporting

PAGE 71

TECHNICAL TANK FLOOR LININGS

THE ASSURANCE OF LINER INTEGRITY Neil Chalmers from IKM Consulting runs through a new report from the Energy Institute addressing the risks of under-tank liner damage during tank floor repair 01

THE ENERGY Institute’s Containment Systems Working Group (CSWG) has developed a new technical publication based on industry research, entitled Research report: The assurance of liner integrity during tank floor works on above ground storage tanks holding petroleum, petroleum product or other fuels. BACKGROUND Secondary containment below aboveground storage tanks (ASTs) is an established requirement for bulk storage of petroleum, petroleum products or other fuels. In Europe, most bulk fuel storage sites are regulated under the EU Seveso III Directive (and in GB under the COMAH Regulations); smaller (sub-COMAH) sites in the UK are subject to devolved nation variants of ‘Oil Storage Regulations’, but the principle of containment integrity applies. The research report complements these regulations and associated policy requirements (e.g. COMAH Competent Authority (CA) Policy on containment of bulk hazardous liquids at COMAH establishments (‘Containment policy’) and industry integrity management technical publications (e.g. EEMUA 159 and EEMUA 183). Under-tank liners have been increasingly installed on sites to ensure that ASTs meet containment integrity requirements by providing a secondary barrier, thereby limiting liquid flow should the primary barrier fail due to an AST floor leak.

PAGE 72

Whilst there is published guidance covering options for improving the integrity of AST tank floors using undertank liners (see Guidance on conceptual design, selection and life cycle assurance of products intended to improve integrity of bases of above-ground storage tanks holding petroleum, petroleum product or other fuels), there is a lack of knowledge and experience regarding the potential impact to under-tank liners during repair of AST floors that have failed an inspection. Therefore, the research report defines good practice procedures: • that would preserve the integrity of under-tank liners where remedial AST floor repairs are required, which otherwise would most likely damage the under-tank liner; and • to reinstate or repair an under-tank liner that has been inadvertently damaged in this way. PURPOSE OF THE RESEARCH REPORT The original remit of the collaborative technical development project was to gather information based on real world industry experience of AST tank floor repairs where an under-tank liner was present and develop a guidance note. An information gathering exercise in the form of an industry questionnaire was issued to Energy Institute member companies and other relevant organisations (operators, suppliers, and installers) to gather data on types of tanks in use, the presence of under-tank

liners, and the types of liners respondents had experience in. The questionnaire collected information on foundation types, i.e. whether the foundations flexible or rigid, and the specification and thicknesses of granular layers used in their construction. Further questions gathered information on inspection frequency of under-tank liners and whether consideration was given to heat transfer effects from the cutting or welding of tank floorplates above newly installed liners, and whether liners had been retrofitted or installed as part of the original construction process. One of the key questions asked whether repairs had been carried out on AST floors fitted with under-tank liners to date. The outturn was that there had been very limited repair work carried out by the respondents at the time of the questionnaire. This was attributed to most respondents not having an inspection regime for liners, and that many liners had only been installed over the past 10-15 years, and potential defects had not yet become apparent. Given this finding, the title of the publication was switched from guidance (reflecting mature knowledge) to a research report, given the limited experience to date. However, the research report still provides useful information to operators, installers, designers, and suppliers when considering the integrity of under-tank liners. HEAT TRANSFER MODELLING Following the results of the questionnaire, the CSWG commissioned a parallel study

TECHNICAL TANK FLOOR LININGS using finite element analysis (FEA) to assess the heat induced risks to undertank liners from construction (placement of hot bitsand), welding and operational heat. This element forms an appendix to the research report. The following liner materials were considered in order to establish their thermal performance: • concrete filled geotextile that hardens on hydration; • fibreglass (GFRP); • pre-hydrated geosynthetic clay (GCL); • high density polyethylene (HDPE), and • polyvinyl chloride (PVC). Each liner material was characterised using manufacturer and publicly available data to use within the modelling process. Assumed base construction details were created using typical minimum thicknesses of bitsand, sand and hardcore. FEA heat transfer analysis was undertaken on a number of composite base types, in agreement with the CSWG. Analysis was undertaken based on three scenarios – construction of tank foundations and floor, welding repair to floor plate, and operation of a heated tank. It was found that during the construction stage (application of hot bitumen sand), the liners (GCL, HDPE, PVC), that had two layers on top of them were not affected from the applied temperature of 120°C. In the case of the other liners (concrete filled geotextile, GFRP) and HDPE (one layer above), where the bitumen mixture was applied directly on top of them, the resulting temperature ranges indicated that the integrity of these liners may be affected. Consequently, the addition of two layers above the liners was found to be beneficial in mitigating heat transfer to the liners. The heat from the applied welding temperature (1,000°C) was not found to affect the liners. In the operational stage, as expected, prehydrated geosynthetic clay, HDPE (with two layers) and PVC material exhibited the lowest increase in the temperature compared to the concrete filled geotextile, GFRP and HDPE liner with one layer above it. The comparison between the different materials used as liners in petroleum sites revealed which liners offer the best thermal performance with two overlying layers (aggregate and/or sand and bitsand). The conclusion was drawn by comparing the temperatures obtained through the numerical modelling findings with limit temperatures found in relevant technical publications. The research report provides additional detail about the vulnerability of liners to heat induced impact and the risk reduction provided by composite protection layers.

RESEARCH REPORT CONTENT The research report provides a commentary on liner types, building on information previously detailed in Guidance on conceptual design, selection and life cycle assurance of products intended to improve integrity of bases of above-ground storage tanks holding petroleum, petroleum products or other fuels. The research report then summarises the potential causes of damage to undertank liners, with the aim of highlighting potential hazards for readers to consider when planning floor repair tasks. These hazards are categorised into inherent properties of the liner, installation defects, chemical, heat, climatic, mechanical and physical hazards. An assessment of risks to the liner from tank works follows and this proposes that all parties have a thorough understanding of the risks to the liner prior to works beginning. The research report introduces a work risk matrix which identifies the potential risks from a comprehensive list of typical repair and maintenance tasks carried out on tanks. Provided along with this matrix is a risk assessment template with definitions for likelihood and consequence to aid preparation of a site-specific risk assessment. These tools are beneficial to those planning repair works on tank floors and liners. The research report also discusses possible protection measures for liners, such as mitigations for the various hazards so as to reduce risks. It also provides guidance on repairing under-tank liners including investigation of the cause, and consideration of repair options, cost benefit analysis, operational hazards including gases and trapped liquids, and validation. Finally, the research report provides a summary of ‘lessons learned’ that considers investigation and root cause analysis of the defect, leading to potential modification of site practices and standards, and wider industry sharing. Further reading 1. Guidance on conceptual design, selection and life cycle assurance of liners intended to improve integrity of bunds to aboveground storage tanks for bulk storage of petroleum, petroleum products or other fuels – https:// publishing.energyinst.org/topics/ process-safety/risk-assessment/ guidance-on-conceptual-design,selection-and-life-cycle-assurance-ofliners-intended-to-improve-integrityof-bunds-to-above-ground-storagetanks-for-bulk-storage-of-petroleum,petroleum-products-or-other-fuels

2. Guidance on risk assessment and conceptual design of tertiary containment systems for bulk storage of petroleum, petroleum products, or other fuels – https://publishing. energyinst.org/topics/environment/ guidance-on-risk-assessmentand-conceptual-design-of-tertiarycontainment-systems-for-bulkstorage-of-petroleum,-petroleumproducts,-or-other-fuels 3. Guidance on selection, installation and management of fire resistant sealant materials and system components for secondary containment construction/ expansion joints – https:// publishing.energyinst.org/topics/ process-safety/risk-management/ guidance-on-selection,-installationand-management-of-fire-resistantsealant-materials-and-systemcomponentsfor-secondary-containmentconstructionexpansion-joints 4. Guidance on conceptual design, selection and life cycle assurance of products intended to improve integrity of bases of above-ground storage tanks holding petroleum, petroleum product or other fuels – https:// publishing.energyinst.org/topics/ process-safety/risk-assessment/ guidance-on-conceptual-design,selection-and-life-cycle-assuranceof-products-intended-to-improveintegrity-of-bases-of-above-groundstorage-tanks-holding-petroleum,petroleum-products-or-other-fuels For more information: Publication of the research report is expected by 31 March 2022. Once published, it will be available via the following link: https://publishing.energyinst.org/ topics/petroleum-product-storage-anddistribution/research-report-theassurance-of-liner-integrity-during-tankfloor-works-on-above-ground-storagetanks-holding-petroleum,-petroleumproduct-or-other-fuels To be notified of the publication of this work (and other EI technical publications) follow the link below to subscribe to receive EI updates on new publications: https://myprofile.energyinst.org/ EmailPreferences/Subscribe The research described herein was funded by the Energy Institute’s Technical Partners, co-funded by its Technical Company Members, and delivered through its collaborative Good Practice work programme.

PAGE 73

TECHNICAL DRONES

THE AUTOMATIC INSPECTION DRONE IS TAKING OFF Beyond visual line of sight (BVLOS) inspection drones offer numerous benefits for tank operators immediately: on the side of the authorities as well as on the side of the end user and the operator, many puzzle pieces have to be put together first. Falcker therefore decided to develop two scenarios as a follow-up to the demonstration: a proof-of-concept scenario based on a lightweight drone and a permit in accordance with the old national regulations, and a second scenario based on a heavier system and in accordance with the new European regulations.

IT HAS been two years since software company Falcker, in collaboration with autonomous drone provider Percepto, demonstrated on the site of Maasvlakte Oil Terminal (Port of Rotterdam) how an automatically operating inspection drone can be used to perform routine inspections or respond to calamities. That was a first in the Netherlands at the time. In terms of regulation, however, there were still quite a few hurdles in flying drones out of sight. But that is also changing. Anyone who has ever seen an automatically operating drone-in-a-box in action immediately understands the potential of such a system. A drone that is on standby 24/7 in a docking station and that is supervised from a central control room, can be used in countless applications, such as routinely inspecting assets on an industrial site, doing surveillance rounds for security, or responding to an accident or suspicious situation on a per-incident basis. It is, however, not efficient to have a drone pilot on location to keep the drone in sight during the flight for regulator compliance only, let alone that the drone has to be controlled manually. From a technological viewpoint, this is also not

PAGE 74

necessary: today’s systems are perfectly capable of independently performing a flight, whereby a remote operator can keep an eye on things and intervene if necessary. But for the legislator, beyond visual line of sight (BVLOS) drone flights are still very challenging. Since that demonstration on the Maasvlakte in 2019, much has changed in Europe regarding drone regulations. The most important change is that the rulebased approach has been abandoned as of 2021. This has been replaced by a risk-based approach. In other words: if an operator can demonstrate through a detailed risk analysis based on the Specific Operations Risk Assessment (SORA) methodology that a certain drone operation can be performed safely, an operational authorisation can be issued for this activity by the aviation authority of the EU member state concerned. Thanks to the European origins of the new regulations, this authorisation can in principle also be applied for similar drone operations in other member states. PROOF OF CONCEPT Unfortunately, new regulations do not mean that flights can be started

For the implementation of the proof-ofconcept scenario, a collaboration was formed that, in addition to Falcker, also included Maasvlakte Oil Terminal and Gate Terminal, the Port of Rotterdam Authority and Securitas. The technology partner in this process is the Dutch startup Mapture.ai, which has developed a drone box based on DJI’s Mavic 2 Enterprise Advanced. The advantage of this system is that the drone weighs less than 1 kg, but still has both an RGB and infrared camera. Thanks to its low weight, the system falls within the limits of the predefined risk analysis (PDRA) for drone box systems, and has been developed in the Netherlands. Duco Boer of Falcker explains the process in more detail: ‘The idea of this proof of concept is mainly to show that the combination of technology and permits is feasible and yields valuable applications. Think of asset inspections of, in this case, tanks and quay walls, deployment in case of calamities and security through surveillance. For this scenario, we have chosen to only fly above terminals at the end of the Maasvlakte, outside the controlled airspace of Rotterdam The Hague Airport. That makes it a little less complex from a regulatory point of view.’ The proper BVLOS permits were obtained by the Human Environment and Transport Inspectorate (ILT) in November. The system was installed and tested. ‘We validated the emergency procedures and communication protocols, after installation we had to test whether the data connection and GPS reception were good, and we set up the remote observation and control places in the MOT/Gate buildings and Falcker’s

TECHNICAL DRONES

Source: Percepto

steps into a new era, but the European rules provide a good framework for the implementation of procedures and technology,’ he says. FUTURE PLANS Falcker’s plans go far beyond the installation of drone boxes in the Port of Rotterdam area. ‘Falcker is a value-added reseller of Percepto in the Netherlands. We will also focus on the rest of Europe. And not only with regard to asset inspections in the oil and gas industry, but we are also looking at applications of drone boxes in other sectors,’ says Boer. In the long term, Boer also foresees possibilities for robots operating on the ground. He says: ‘Percepto’s system goes much further than controlling a single drone. It can control an entire fleet of drones and also ground robots, such as the well-known robot dog Spot from Boston Dynamics. We have truly entered a new era. Difficult or risky tasks that are now carried out by humans can hopefully be taken over by robots in the future.’

headquarters. We programmed flight plans and fallback procedures and are now evaluating the inspection photography,’ says Boer. SECOND SCENARIO For the second scenario, Falcker formed a coalition with the Israeli company Percepto and Koole Terminals. ‘The use case concerns performing lineup checks during product manipulations and spill detection. We are also in touch with Port of Rotterdam to see whether supervisory requirements such as those contained in the ISPS can be met with this technology. For this scenario we are switching to the European model. We have to develop a SORA for this, because Percepto’s drone with its 10 kg weight is a lot heavier and we want to operate within the CTR of Rotterdam. This therefore requires much more paperwork and coordination with the ILT and Air Traffic Control the Netherlands. For example, our operational manual must be converted to the European format. I think we are at 95%, but I think it will take some time before the SORA is approved,’ says Boer.

radio contact with air traffic control, until U-space is introduced and radio contact is no longer needed.

For more information: www.falcker.com

According to Boer, the complexity is not so much in the technology, but much more on the regulatory side. ‘The most difficult part is the application and implementation of laws and regulations. It is a new matter for all concerned. For the end users, for Falcker, for the ILT, for LVNL, for the ministry and for the port authority. So, it requires patience as everything has to be properly aligned. It also requires a lot of thinking and sometimes courage. These are baby

01 The first demo of an autonomous flight at the Maasvlakte Oil Terminal in 2019 02 The Percepto system has the ability to control both airborne drones and ground robots 03 The Koole Terminal where the first operational autonomous Percepto system will be implemented in the controller air space of Rotterdam

In October 2021, a start was made on determining all parameters for the new system, such as the location of the drone box, places for possible emergency landings, crossings of private roads and areas where the drone is not allowed to fly. Initially, the system will be controlled from Falcker’s office, which will also include

PAGE 75

TECHNICAL BIOFOULING AND CORROSION

SMALL CAUSE, BIG EFFECT Northern German company Hasytec has tackled the problem of biocorrosion and developed an efficient solution COST EFFICIENCY, streamlined process chains and environmental friendliness are just a few factors that have always been of high importance in industry. Deposits and biocorrosion have a negative impact on the operational time and life cycle of storage tanks, pipelines and machines, and thus strongly influence the design and planning of processes. AVOIDING BIOFILM & DEPOSITS THROUGH THE USE OF ULTRASOUND Biofilms form predominantly in liquidbearing systems such as storage tanks, pipelines or cooling towers. Organic and inorganic molecules settle at the so-called interfaces (adsorption). Microorganisms and algae begin to settle. They form a gel film that increases the resistance to external influences. After some time, the film begins to spread over a wide area, and parts of the original base can also detach. The issue of biofilms and deposits affects almost all industrial sectors, regardless of whether it is shipping, food production or paper manufacturing. Even steel production is affected. The example of a vessel’s hull is a good illustration of what biofilms are capable of. Although the hull is treated with antifouling paints, biofilm still forms and creates the basis for the growth of barnacles, algae and mussels. The cleaning of hulls alone is a significant cost factor for ship owners.

Biocorrosion reduces the life cycles of liquid-carrying systems and equipment and necessitates the premature replacement of tanks, pipes and coolers In the case of storage tanks and pipelines carried media can become contaminated. The resulting biomass is capable of clogging filters and pipelines and thus impairing the function of the entire system or rendering it inoperable. More serious, however, is the impact of biocorrosion. Over time this degrades even stainless steels and leads to leaks and pipe ruptures. Maintenance and replacement require additional investment. In some cases, the health of employees is also at risk. In the case of cooling towers, the buzzword is Legionella. If aerosols enter the human body through the respiratory tract, they can lead to illnesses and even pneumonia. INTELLIGENT DEPOSIT PROTECTION Intelligent Deposit Protection (IDP) is a technology that prevents the formation of organic and inorganic deposits on all liquid-bearing surfaces. In this process transducers are bonded from the

outside to the equipment or tank that is to be protected. A carefully selected two-component epoxy resin adhesive is used for this purpose. Then a special process is used which ensures the correct handling of the adhesive and at the same time prevents the transducers from moving during the curing phase. A patent application is pending for this self-deployed solution. Special high-temperature transducers and adhesives are available for hightemperature applications. The generated ultrasonic signals penetrate the surface and propagate in the guided medium. There the sound waves prevent the adhesion of inorganic and organic deposits. This also prevents biofilm. As a result, biocorrosion is significantly reduced or even completely prevented. One of the basic factors of the technology is the non-gravitational ultrasound generation, which leads to the possibility of permanent and preventive application. This only affects the deposits and protects the sonicated equipment itself. Other systems are not negatively affected. PROVEN IN SHIPPING, OPTIMISED FOR INDUSTRY At first, the innovative ultrasonic technology was used in the field of industrial shipping. After the system successfully held its own there, industrial use showed up rather by chance. For test purposes the process was installed on a plate heat exchanger and a cooling tower. The results were convincing and for about three years the predecessor system has been used in various branches of industry. In 2020 the company was awarded the German Innovation Prize for this. Especially at the beginning, a lot of convincing had to be done to get a foot in the door. Through an intensive exchange with customers and a lot of work, further areas of application could be opened up. A great advantage for the company is that many customer requests and concerns can be further developed into new standard applications. This holds immense potential; many concerns can be transferred across a wide range of industries and not only individual users are looking for solutions.

PAGE 76

TECHNICAL BIOFOULING AND CORROSION production safety. Plate heat exchangers benefit from longer intervals until the next maintenance and cleaning work, as significant service life extensions are made possible. By addressing customers’ problems, the company has been able to develop earlier customer requests, such as the use in pasteurisers and bottle washing machines, into today’s standard applications and to incorporate the knowledge gained in other industries.

ULTRASOUND 2.0 MEETS INDUSTRY 4.0 IDP has been specially optimised to meet the requirements of industry. The previously used Dynamic Biofilm Protection (DBP) technology was installed, and subsequent adjustments were not possible. The evaluation of parameters or the performance of a fault analysis were also only feasible to a very limited extent. The propagation of the ultrasonic waves depends, among other facts, on the density of the medium, the ambient temperatures, the layer thickness of the transferring material as well as the solid content in the medium itself. This results in very differentiated performance requirements for various liquids, emulsions and products. The IDP technology, which has now been further developed, autonomously measures the variables mentioned and determines the required frequencies and power from them. Furthermore, it detects deviations from these determined values and makes the necessary adjustments independently and permanently so that the optimum combination of power and frequency is always present. In this way, the system can react to changing filling levels of storage tanks. In addition, the power of the IDP has been increased by a factor of 3.5 compared to its predecessor and power duration variables have been integrated. Thanks to the newly integrated USB port, future system and software updates can be easily installed via Plug & Play. This allows the system to be expanded with already planned content. In addition, external devices can be connected. The problem of limited error analysis and result evaluation has also been addressed and revised. Now almost all data can be read and analysed from the modular control unit to the individual sounder. This includes running times, performance analyses and also error messages of individual components. The goal of the adjustments is to ensure that

the customer can rely on the system at all times. The extended error analysis of the interface created, the artificial action of the system and the possibility of uploading updates ensure the foundation for Industry 4.0. The system supports the customer in ensuring an optimised, resource-saving and environmentally friendly process cycle; at the same time, IDP increases the production and operational safety of the plants, as well as the expected service life. APPLICATION AREAS IDP requires a permanent power supply in addition to a metallic and liquid-bearing surface. In order to also be able to effectively sonicate plastic pipes, special installation options exist. In general, a distinction is made between process-related applications such as plate heat exchangers, pipelines, storage tanks and cooling applications such as cooling towers, wet separators, evaporative cooling systems. Practical experience shows that by using ultrasonic technology, the addition of biocides to evaporative cooling systems, cooling towers and wet separators can be reduced to a minimum and the corresponding systems can still be operated safely within legal limits and specifications. This makes an important contribution to ensuring

Recently IDP was commissioned on storage tanks in cardboard production after the first initial test project has proven very successfully. Instead of almost daily cleaning, the storage tanks now are flushed on a weekly basis only. Another good example is the application in steelworks in Central Europe, where the technology is used to prevent not only biofilm but also the growth of invasive zebra mussels in parts of the cooling system. Fouling is of increasing economic importance for companies in a wide range of industries. For example, biocorrosion not only reduces the life cycles of liquid-carrying systems and equipment and necessitates the premature replacement of tanks, pipes and coolers. At the same time, operating costs also increase due to the necessary maintenance servicing. An additional, often underestimated cost driver is the decrease in efficiency/underperformance (heat transfer coefficients) of the individual components, which increases the total energy demand of the industrial plant. A factor that should not be neglected is the necessary use of biocides and chemicals, which are reflected in the ecological costs. The issue of biofouling, deposits and biocorrosion is becoming increasingly important. This is not only due to the ecological aspects, but is much more based on an increasingly detailed consideration of individual processes, interrelationships and resulting outcomes. Small things can have a big effect, in a positive sense. For more information: www.hasytec.com

01 Transducer installed on a storage tank 02 Oscillation-optimised sounder of the latest generation 03 The cooling inlet, which is not overgrown with barnacles and algae, was protected with ultrasound. The rest of the hull was coated with a common antifouling paint 04 The modular control unit generates and controls the ultrasound signals

PAGE 77

EVENTS V MED HUB DAY

CHALLENGES AND ADAPTATION AHEAD As the world faces the energy transition and ever-more stringent climate targets, agents in the bulk liquid logistics chain came together at V Med Hub Day to discuss the future Credit: Port Authority of Tarragona

MED HUB DAY, a conference organised by Port Tarragona in Spain with ChemMed Tarragona, an industrial, logistical, academic and scientific chemical cluster located in the greater Tarragona area, is now in its fifth edition. After a digital event in 2020, the 2021 V Med Hub Day was a hybrid event, with people attending in person and online.

has continued despite the pandemic, including in new tanks for Tepsa and Terquimsa and the ongoing development of the Mediterranean rail corridor.

The aim of V Med Hub Day, on 18-19 November 2021, was ‘to promote, debate and exchange some information about the strengths and opportunities that the Mediterranean Sea offers us as a logistics platform for chemical and petrochemical products.’ It involved storage terminal operators, ports, consignees, forwarders, market analysts and chemical and petrochemical companies.

Bulk liquid flows in the Mediterranean and their relationships with chemical parks

The event was moderated by Patrick Kulsen, the managing direction of Insights Global, an independent market research company focussed on the international petroleum and petrochemical industries. Josep M Cruset i Domènech, the president of Port Tarragona, gave the welcome address. He said that the Port’s work is based on the principle that ‘periods of change are full of opportunities’, and that it is the fasted growing port in Spain, with traffic up by 22% since 2020. Investment PAGE 78

SESSION 1 – PORTS AND TERMINALS

The first presentation in the session was given by Jordi Anglès Jové, commercial coordinator at Port Tarragona, based on a study analysing bulk liquid flows in the West Mediterranean. At the IV Med Hub Day in 2020, Anglès discussed the traffic and ports section of the study; this time he looked at the relationship between the analysed traffic in 2020 and the industrial parks in Europe. He first reiterated the conclusions from the previous presentation, including the significant consumption of bulk liquids in West Mediterranean ports. 48% of bulk liquid movements are crude oil, with only 4% being chemicals, which could indicate a growth niche. The ports of Tarragona and Algeciras are leading the growth in storage capacity.

The first part of his new analysis looked at the effect of petrochemicals in the West Mediterranean. The region is highly dependent in crude oil, and 82% of total liquids are petroleum products, which is interesting in the context of the energy transition. Ports need to be aware of the strategic plans of oil companies for the 2030s and 2050s. Spanish ports are stronger than other ports in the region, being generally more diversified with more local and regional vision. The second part of Anglès’ presentation looked at petrochemical trading and chemical synergies. He showed on a map the locations of the main petrochemical companies on the Iberian Peninsula, the Mediterranean region and the ARA and Central Europe areas. Anglès pointed out that there is important infrastructure in the Mediterranean for use by traders, and that chemicals have much potential. Tarragona itself accounts for 15% of total chemical traffic in the West Mediterranean. The emerging biofuels sector also offers good growth potential, while bunkering could open up new opportunities. Anglès said that Tarragona’s first class facilities and new storage capacity positions it as a leading port.

EVENTS V MED HUB DAY The Port’s talk: Hub strategies in the ‘new normality’ In the second slot, Genoveva Climent Dewit, the commercial director at Port Tarragona, and Ronald Backers, advisor business at the Port of Rotterdam in the Netherlands discussed new strategies for chemical hubs, in a session moderated by Kulsen, and began with a bit of background. Tarragona began in the 1960s with the growth of the chemical industry in the area, which wanted to get raw materials in and products out quickly. It was originally Spanish only but then became an export port. Its hub strategy began in 2014, and it has since doubled the capacity of the chemical wharf. Rotterdam, meanwhile, was run by the city council, which wanted to attract industry and improve employment, so decided on a hub strategy. In 1992 the first dedicated marketing to the chemical industry began. It is now a hub for fuels, chemicals and biofuels. Climent said that one measure to reinforce the hub strategy is tax reductions, but the most important thing is top class facilities in a good condition. Tarragona is one of the deepest ports in the Mediterranean, with two jetties and two wharves. Congestion is minimised and the right information is passed on at the right time to avoid delays. It is also vital t work with the port community. Backers said that there are price benchmarks in Rotterdam. Certain products attract certain operators, for example, terminal companies handling biodiesel and feedstock such as Koole and Vopak have attracted two biodiesel plants, such as Neste’s, helping to create the hub. Kulsen pointed out that things are changing with refinery rationalisation and companies moving away from crude. Climent said that Tarragona is looking at how to adapt. Backers believes that hub locations will have the best

chance of surviving in future. Large chemical plants will still be needed to produce large volumes of chemicals from other feedstocks, and where better than somewhere with an existing industrial area? Storage terminals panel The final discussion of the first day was between Anastasiya Mozgovoy, business development /deputy director at Euroenergo, Josep Forcadell, commercial and business development director at Vopak Terquimsa, and Leandro Crespo Ariza, corporate operations manager and Tarragona Terminal manager at TEPSA. Kulsen asked the panellists what they thought the Mediterranean region’s position is in terms of liquid bulk in the new normal. All panellists agreed that strategies are changing, with Mozgovoy saying that supply chains have become more local since the COVID-19 pandemic, and much greater demand for small volume products, with existing tanks designed for hydrocarbons simply too big. Crespo said that demand for chemicals has risen but an increase in the cost of freight is changing logistics and terminals must be adaptive. Forcadell added that terminals will play an important role as companies prepare for a more sustainable future away from petrochemicals. The panellists then discussed how ports can keep up with rapid change, and again, were largely in agreement. Good waterfront services and bunkering, flexibility and intermodal capabilities, alongside sustainable/ESG strategies such as shore power. Connectivity with manufacturing sites is important and digitalisation is increasingly important for the exchange of information. Kulsen also asked about the energy transition. Crespo said that terminals have two different approaches – either in terms of energy efficiency and

reducing CO 2 emissions, or by moving to more sustainable products. At Rubis Tepsa, they are working to put in measurable targets. Forcadell said that Vopak Terquimsa is looking at greener feedstocks, hydrogen and carrier technology, and new energy projects such as biofuels and green ammonia, as well as other measures like using electric vehicles to move around terminals. Mozgovoy said that Euroenergo is looking at installing smaller tanks in place of large tanks and discussing options with customers. When asked to describe objectives for tank storage in 2022, the panellists’ suggestions included flexibility, specialisation, sustainability, adaptivity and innovation. SESSION 2 – PETROCHEMICAL COMPANIES & HUBS Bunkering in hubs: Strengths and opportunities Daniel de Miguel, trading, shipping and bunker operations manager at CEPSA, kicked off his talk with some facts and figures. Did you know, that 6% of the world’s hydrocarbon trading activity is in fact bunkering? In Spain, 60 ports offer bunkering services, with CEPSA responsible for 40% of the market. Of the demand, 27% comes from dry bulk carriers, 22% from tankers, and 28% from container ships. The projected total demand for bunker fuels worldwide in 2021 is expected to reach 7.6 million tonnes. While the world’s biggest bunkering hub is Singapore, the largest in Spain are Algeciras and Las Palmas. 2021 has seen some recovery in bunkering demand, by 17.5% compared to 2020 levels, but as levels fell 18.5% in 2020 compared to 2019, there is still a little way to go. The biggest change in the bunkering market came with the introduction of IMO 2020, which saw the maximum sulphur content in bunker fuels lowered to 0.5% unless scrubbing technology was used for the exhaust. Very low sulphur fuel oil (VLSFO) was expected to become the fuel of choice, but this is not necessarily the case. In 2019, 80% of bunker fuel was high sulphur fuel oil (HSFO). In 2021, it still makes up 20% of the market as scrubbing technology is cheap and convenient. VLSFO makes up 55% of the market, with other fuels like LNG gaining in popularity, although high costs are curbing this. HSFO is expected to grow again by 2030. The Mediterranean is an important bunkering with major maritime routes through the Suez Canal linking Europe and Asia, so opportunities abound. With decarbonisation and COP26 climate

PAGE 79

EVENTS V MED HUB DAY targets, as well as the EU’s Fit for 55 guidelines including shipping in the emissions trading scheme, shippers must start looking at alternatives to petroleum bunker fuels. The greenhouse gas impact of bunker fuels in Europe must fall by 75% by 2050 compared to 2020. In the short- to medium-term, fuel oils, LNG and marine gasoil (MGO) are the only options available, but other fuels like second generation biofuels will need to be introduced, although a question mark remains over availability and price. Shippers can also look at improving the efficiency of their ships, including through vessel design, engine efficiency, hull friction, propeller design and voyage optimisation which can reduce fuel needs by 20%. In the long-term, green hydrogen, green ammonia and renewable electricity will need to be introduced, but at the moment this is not possible. Petrochemical companies panel Javier Azagra Del Campo, operations manager at Repsol Petróleo Ci Tarragona, Fran Sánchez, hydrocarbons logistics leader at Dow Chemical Iberica and Albert García Ribera, head of site logistics & infrastructure at BASF, contributed to a panel discussion on petrochemicals led by Kulsen. Kulsen first asked about the logistical challenges faced by petrochemical companies. All the panellists agreed that being flexible enough is something they are all looking at, whether to meet customer expectations on delivery dates, flexibility on raw materials, or flexibility on products for the approaching energy transition. To mitigate the challenge, Sánchez said that the most important thing posts can do is ensure quick, safe and smooth port calls. Azagra agreed and again emphasised the importance of flexibility in the ports themselves, while García said that multimodal capabilities are essential. Hubs such as Tarragona offer easy access to European markets with good connectivity, while the Mediterranean itself has favourable sea conditions compared to other locations, Azagra said. García added that the partnership with the port and its experts was of crucial importance. Kulsen also asked about the logistics vision of the future for petrochemical companies. The panellists agreed that the focus is on recovery following COVID-19 in the short-term. In the longer term, digitalisation and automation, both in manufacturing and port operations will become vital, while sustainability and the drive to net-zero is also going to be a focus.

PAGE 80

The state of the chemical industry Olivier Maronneaud, director, chemical consulting at IHS Markit, a data, analytics and information company, gave the third talk of the session. He looked at the general global economy, pointing out that the world is dealing with the worst recession in 30 years as a result of COVID, then discussed its effects on the chemical industry. While industries driving demand in the chemical industry, such as the automotive industry, have suffered, new consumer habits and the need for masks, packaging, detergents and sanitisers has helped. However, spending on new projects and capacity has been delayed, with some projects scrapped. Maronneaud also looked at the transition to a greener future, including the possible impact of plastics recycling growth and the need to decarbonise e.g. through the use of biofeedstocks and renewable energy. Maronneaud has written up his talk in detail for Tank Storage Magazine, which can be read on p50. SESSION 3 - ENERGY TRANSITION & SUSTAINABILITY The energy transition & the role of hubs In his presentation, Paul Hickin, director at S&P Global Platts, looked at the alternative fuels which may be available to shippers during and following the energy transition. He pointed out, as had several speakers before him, that at the moment the technology to meet the energy transition target, which is a moving target due to constantly changing government and international policies. This makes it difficult to plan what infrastructure and storage might be necessary. Many shipping companies are looking at duelor multifuel ships in the medium term,

with an eye on clean methanol or green ammonia in future. Hickin has written up his talk in detail for Tank Storage Magazine, which can be read on p46. The Mediterranean Corridor: Getting closer to Europe Martijn Elbers, sales director at Lineas, the largest private rail freight operator in Europe, gave the final presentation. The company has 250 locomotives and 7,000 wagons, connecting major hubs in Europe. The major benefit of rail transport is avoiding road traffic, but there are limitations. Spain has a different gauge from the rest of Europe so products must be transhipped at the border. One route from Lyon to Barcelona has the same gauge, but here there are weight and length restrictions. Lineas’ Green Express Network nevertheless remains a good option. CLOSING CONCLUSIONS Anglès summed up the two main conclusions from the event: 1. There are big challenges ahead for petrochemical companies, and there is a need to see companies’ strategic plans as to how they plan to handle the energy transition 2. Ports will also need to adapt to the energy transition. For more information: The next Med Hub Day will take place on 17-18 November 2022 in Tarragona, Spain. www.hubdaytarragona.com

01 The Port of Tarragona, Spain

11th & 12th May 2022 The NEC, Birmingham, UK PRE-REGISTER FOR FREE ENTRY!

CHEMUK2022 The Supply Chain Expo & Speaker Programme for the UK’s Chemical Industry

FREE ENTRY

WHEN ERED PRE-REGIST

2 Packed Days 350+ Leading Exhibitors Latest Plant & Equipment Chemicals & Materials Sourcing Supply Chain Networking 100+ Expert Speakers Panel Sessions & Keynotes NEW FOR 2022 Bio-Innovation Zone

Headline Media Partner

Supporting Partners include:

11TH & 12TH MAY 2022 REGISTER FREE AT WWW.CHEMICALUKEXPO.COM

EVENTS ROBOTICS

ACCELERATING DEPLOYMENT OF ROBOTICS FOR INSPECTION AND MAINTENANCE The SPRINT Robotics Collaborative focusses on the value that robotics can deliver to end-user organisations at the forthcoming world conference 01

Credit: Marlou Pulles

ROBOTICS FOR inspection and maintenance (I&M) is becoming increasingly embedded in the overall strategies of companies managing and maintaining capital-intensive assets. Environmental advantages and safety performance are drivers for the increased use of robotics, as well as benefits such as operational efficiency and cost reduction associated with maintenance and unplanned shutdowns. In addition, robots offer significant opportunities to increase the safety of performing inspection, maintenance and cleaning activities, preventing human entry of vessels and other equipment. The field of robotics for I&M has seen a massive transformation in a short span of time. From a small niche with few viable robotic technologies and solutions, to a dynamic industry with a large ecosystem of companies, asset operators are embracing robotics as a mainstream solution. THE SPRINT ROBOTICS COLLABORATIVE The SPRINT Robotics Collaborative is leading the way in the effort to promote the field use of I&M robotics

PAGE 82

of capital-intensive infrastructure on a large scale. Launched in 2015 by several large asset owners from the energy industry, SPRINT Robotics has become an internationally recognised platform for I&M Robotics with a support base of over 100 companies and organisations globally. The member companies of the collaborative consist of Participants (asset owners and operators) and Associate Participants (service providers, technology providers, manufacturers and research institutes), with currently three regional chapters around the world: AsiaPacific, Europe, and North America. Engaging the whole value chain, from end users to service and technology providers, SPRINT Robotics strongly focusses on the value that robotics for I&M can deliver to end-user organisations, i.e. the operators and owners of capital-intensive infrastructure. Robots are a means to an end and not a goal in themselves. ‘A unique aspect of SPRINT Robotics is that we start from the asset operator perspective. Robotic developers and suppliers come to us exactly for that reason, we connect real world problems to potential robotic solutions,’ says Dr Tjibbe Bouma, chairman of SPRINT Robotics.

WORLD CONFERENCE FOR INSPECTION & MAINTENANCE ROBOTICS 2022 SPRINT Robotics organises a wide variety of events throughout each year: from seminars and regional roadshows to the annual World Conference for Inspection & Maintenance Robotics which has grown to become the world’s leading global event for robotics for inspection, maintenance and cleaning. The 2022 edition of the SPRINT Robotics World Conference for Inspection & Maintenance Robotics will be held in Singapore on 29-30 March, marking the first time the event will be held in Asia. The two-day conference and exhibition will also be fully accessible virtually to I&M professionals from around the globe. George C Williamson, chairman of the conference programme committee, commented: ‘As we all thankfully experience the continued opening of business travel and opportunities to attend collaborative events, we are proud to announce the 2022 edition of the SPRINT Robotics World Conference for Inspection & Maintenance Robotics in Singapore. This industry-specific event gathers stakeholders from around the

EVENTS ROBOTICS globe to share the innovative progress and rapid development of robotics for inspection and maintenance.

Some of the most exciting recent developments are robotics solutions for storage tanks. Innovative new technologies for the internal in-service inspection of hazardous fluid tanks and a showcase of global service providers will be a part of the conference in Singapore.’ The two-day conference programme covers a broad scope of inspection- and maintenance-related industries, aiming to create synergies between different sectors. Attendees have the opportunity to hear insights from more than 50 international speakers: innovators and trailblazers that are taking on challenges faced in inspection and maintenance operations and who are reshaping the world of asset integrity. As clean energy is gathering speed and industries are rapidly shifting their focus to new markets, the impact of the energy transition and the role I&M robotics can play will unquestionably be one facet of the conference programme. Another aspect highlighted will be the vulnerabilities the COVID-19 pandemic has revealed in supply chains, demonstrating that the reliance on human presence in facilities is a risk to continuity. These new insights have provided a whole new dimension to the importance of automated solutions, remote operations and robotics. Allowing robotics for I&M to execute these tasks offers a significant opportunity in solving these challenges. Presentations during the conference will also focus on specific segments such as scaling, remote operations and cleaning and fabric maintenance, and highlight a wide range of innovative robotics applications including cleaning and inspection of pressure vessels, process piping and storage tanks. ACTION GROUPS Within SPRINT Robotics are four action groups (storage tanks, pressure vessels, process piping and remoter operators): four areas that have the highest priority for improvement within the I&M domain, as reflected in the SPRINT Robotics Strategic Roadmap. As part of the conference, each of these asset groups is designated a presentation track. In looking forward to Singapore, Nader Sharara, leader of the Action Group Storage Tanks and Steven Trevino, programme manager of the Action Group Storage Tanks share insights and focus points of the Group. ‘In recent years robotics has enabled operators to redefine their integrity strategy for aboveground storage

Credit: Marlou Pulles

tanks, by way of in-service tank bottom scanners that operate in hazardous product. We are now seeing a number of certified safe systems being commercialised and it is our responsibility to lead the industry in understanding their performance in real-world conditions, so that we may leverage them to their full potential. As we kickoff version two of the Guidelines for the Application of Robotics for In-service Inspection of Aboveground Storage Tanks, we will evaluate similar robotic platforms that may be applied to other tank components such as the shell, roof, chime, and nozzles/appurtenances, driving quality and repeatability while acquiring more data than ever before. Building confidence in the decisions we make first begins with being able to confidently deploy these systems and that takes a collaborative effort to assess their performance in the lab, in the field, and ultimately every site around the globe,’ says Sharara.

EXHIBITION

Trevino adds: ‘We are very fortunate to live in a time where technology can intersect directly with our wildest dreams. For so many years we have envisioned the deployment of sensors in these applications, but the limiting factor has always been the hardware and the associated electrical certification schemes these devices must meet to safely operate in explosive environments. Addressing the most difficult electrical certifications in the world, we now have many robotic systems capable of deployment today. It is exciting to think about their scalability, but to enable that, we must work together to understand the value these solutions bring in terms of safety, efficiency, and ultimately revenue. Assisting the industry in a collaborative way, with so many subject matter experts involved, we can have significantly accelerated knowledge generation and understanding of these systems for tangible real-world results that are built on industry best practices.’

www.sprintrobotics.org

The SPRINT Robotics World Conference also includes an exhibition, offering an opportunity to view some of the latest market-ready robotic and digital solutions and engage with professionals in I&M robotics. For the 2022 edition, the exhibition will be in-person in Singapore as well as supporting an unlimited number of service and technology providers online. With 400+ delegates, 50+ international speakers, an evening banquet, panel sessions and a broad scope of industries, the SPRINT Robotics World Conference for Inspection & Maintenance Robotics is the best place to share knowledge, learn about existing end user cases, network with industry experts and gain new perspectives into the global status of robotics for I&M. For more information: conference.sprintrobotics.org SPRINT Robotics Strategic Roadmap – https://shop.sprintrobotics.org/ collections/sprint-robotics-guidelinesand-documents/products/sprintrobotics-strategic-roadmap

Guidelines for the Application of Robotics for In-service Inspection of Aboveground Storage Tanks – https://shop. sprintrobotics.org/collections/sprintrobotics-guidelines-and-documents/ products/ast-guidelines

01 The expo floor at the World Conference for Inspection & Maintenance Robotics 2019 in Rotterdam 02 The technology demo cage at the World Conference for Inspection & Maintenance Robotics 2019 in Rotterdam 03 The expo floor at the World Conference for Inspection & Maintenance Robotics 2019 in Rotterdam

PAGE 83

LEADING GLOBAL CONFERENCE DEDICATED TO INSPECTION & MAINTENANCE ROBOTICS

WORLD CONFERENCE 2022 March 29 - 30, 2022 InterContinental Singapore & virtual

INDUSTRIES:

OIL & GAS

CLEAN ENERGY

ENERGY DISTRIBUTION

PETROCHEMICAL

WATER INFRASTRUCTURE

CHEMICAL

Join us and register now: conference.sprintrobotics.org/

NUCLEAR

MANUFACTURING & PROCESS INDUSTRY

EVENTS TANK TALK WEBINAR

CONNECT THE DOTS AND MAXIMISE YOUR SYSTEM THROUGH SMART ENGINEERING Derek Blagg and Adam Wishall from Varec summarise their recent Tank Talk webinar

THE NOVEMBER Tank Talk webinar, presented by bulk liquid storage products and engineering company Varec, aimed to provide helpful tips, and outline critical questions to ask and answer to help organisations successfully connect the dots across their facility.

from different manufacturers, and knowing if and how these devices can be integrated. Another thing to consider is how to manage communications between systems. With communication, one must think about both the physical layer as well as the data that will support the communications.

Derek Blagg, commercial director of Varec, and Adam Wishall, automation sales manager for Varec, co-lead the webinar. To start off the talk, Blagg explained: ‘Organisations often face many challenges when designing, deploying, and maintaining a comprehensive automated solution that integrates devices and interfaces for management and control across the facility,’ He further advised that you must look at an operation’s entire landscape to properly connect the dots, starting at the tank, then in the field, to the control room, at the load rack, and finally at the enterprise.

Speaking of infrastructure, shifts to the cloud have resulted in a whole new set of challenges. The increased focus on cyber security and data protection has some operations reluctant to migrate away from legacy systems and technologies.

THE CHALLENGES Integrating multiple components to provide automation and control is complicated for many according to Blagg. ‘No matter how big or small the operation, legacy systems are often the biggest opportunities to tackle. They often have obsolete components or are operating with components that have reached end-of-life. It is also difficult to scale legacy systems to support changing needs as new devices typically don’t support legacy or outdated field protocols,’ he said. Other challenges include managing components, devices, and interfaces

CONNECTING THE DOTS AT THE TANK ‘Starting at the tank, the first thing to consider is the level of accuracy needed. This will determine what tank gauging technology is required,’ said Wishall. The type of product being stored, i.e. liquids or solids, and if API 2350 or custody transfer are required, are other considerations. How the product will be measured, i.e. by volume or weight, whether temperature or pressure is tracked, or if product movement will be tracked are also factors.’ It is important to determine early on if the data needs to be collected in real time or near real time. That will greatly impact the level of automation required. Redundancy, as well as fail-safe requirements are both vital to ensure there are no gaps in data but may not be essential depending on the product or liquid being tracked. Communication, relative to automation, should be clearly understood. How

will the communication to and from devices be handled and what security implications could result? How will the data be accessed? Does there need to be a local display at the communication interface? Will there be a human-machine interface (HMI) with supervisory control and data acquisition (SCADA) software in the control room? Is there more than one control room? Also, will the data need to be accessible at the enterprise? Do not overlook these questions – make sure to map it all out early. CONNECTING THE DOTS IN THE FIELD Wishall advised that operators should know what is in the field, or what will be need needed, during the planning stage. Also, determine the level of data collection desired. Is a simple true/false indication of status sufficient, i.e. the valve is open? Are detailed trends needed, i.e. the number of times the valve was opened and the duration? As with at the tank, the question of real time or near real time must be determined, as well as redundancy and fail-safe requirements. Knowing how the devices will communicate, i.e. analogue versus digital versus field busses, and how best to secure the data are also important considerations. ‘I’ve helped customers support preventative field maintenance in the field through automation. For example, pumps and valves can be controlled to determine the order, duration, and frequency to reduce wear and tear. Automation can also control the gate and access to the facility and extend throughout the field to

PAGE 85

EVENTS TANK TALK WEBINAR things like weight scales, presets, product availability, and more,’ added Wishall. It really comes down to each operation defining its goals ahead of time. CONNECTING THE DOTS IN THE CONTROL ROOM An engineer by trade, Wishall has spent many years in customers’ control rooms, which are the epicenter of the automation system. The interfaces supporting control at the tank and in the field generally reside there. Communication management and security are extremely vital here. Infrastructure, access. and permissions will likely depend on whether data is stored on a controlled network versus a business network. Additionally, wired versus wireless will come into play based on what is installed at the tank or in the field. How and when system updates are managed across connected interfaces, workstations, and servers will also have security implications. Interfaces, such as PLCs (programmable logic controllers), RTUs (remote terminal units), and DCSs (distributed control systems) power a lot of the automation and control. ‘When I design automation systems, I ensure the customer is able to leverage the true power of these devices,’ said Wishall. ‘The programming should support the needs and goals of the organisation, while also being simple and intuitive, with logic easy to update and maintain.’ If there is an integrated HMI SCADA software solution, the visualisation of the data is typically available in the control room. The HMI can provide a lot of value for operators, such as the ability to manage product and personnel safely functionality, such as alarming, leak detection, and overfill prevention. It can also support automation for pipeline receipts, prechecks, lineups, and movements. Historical trends and reports are also typically available, giving operators and managers access to timely data.

CONNECTING THE DOTS AT THE LOAD RACK For sites with load racks, automation usually begins by integrating the load rack system with the gauging system. This helps ensure accurate availability based on product levels. There are some familiar considerations here as well, such as communication, data security and the type of data measurement used when loading product. There are often environmental systems that need to be integrated with the load rack, such as grounding, vapour recovery, and deadman switches. When managing the load rack, Blagg explained that it’s all about the load rate. Is the load rate where it needs to be? Is the loading process automated from facility access through to issuing the bill of lading (BOL)? If not, should it be? What about verifications and validations in the workflow? Validation of company status, driver qualifications, and vehicle status, as well as managing recipe control through the injection system can all be automated. Built-in validations make it easy to know when to permit a driver or company access to load product and what product is made available. Once in place, organisations can better support large terminal operations, as well as unmanned locations. CONNECTING THE DOTS TO THE BACK OFFICE Fast and accurate accounting and reconciliation are critical to any operation. ‘It’s important to know if there accounting standards, requirements or reporting processes that need to be followed, or implemented as a part of the automated system,’ Blagg said. Also, is the data input manual or is automated data capture happening in real time? When it comes to the BOLs, how are product receipts tracked and managed?

For example, are the receipts metered or gauged? Additional data collection questions to know the answer to include: Is the system capable of meter reconciliation? Is there tracking for variations between physical and book inventories? Is the tracking done daily versus weekly versus monthly and what types of trends or analysis are available? Lastly, as this data is highly sensitive, how will access be managed? Who needs access? What other data sharing methods will need to be supported? Mapping this out will help ensure the right tools and processes are put in place at the tank, in the field, in the control room, and at the load rack to adequately support back-office functions. CONNECTING THE DOTS TO THE ENTERPRISE Every facility must report some level of information up the chain according to Blagg. Understanding what data is needed at the enterprise, and how it will be accessed, is vital when designing your automation system. How will site data be brought into the enterprise, including connectivity and data frequency? What specific data is needed and how will it be managed and controlled? Will the enterprise simply view the data, or will modifications be permitted? Do certain groups at the enterprise need specific views? What permission levels are needed across the data set? Data sharing methods and security will factor heavily as there is typically integration between the enterprise and other systems, such as customer and vendor systems and enterprise resource planning (ERP). Another decision point is determining if customers will have access to any of the data, and if so, how that will be supported. CONCLUSION Integration is complicated, how would you connect your dots? The key is to stay aware of industry trends and best practices and try to be as prepared as possible. Ask questions, a lot of them, to ensure no dot is being overlooked. Leverage smart engineering, performed by knowledgeable experts, to help. Be sure your business needs are met while aligning costs with expected the value of the system. For more information: www.varec.com

01 Varec software helps organisations successfully connect the dots across their facilities

PAGE 86

Leading a new energy era 22-24 February 2022 Hybrid conference Convened by the Energy Institute’s sector experts, International Energy Week builds on the strengths and legacies of IP Week and is the global conference for a new energy era. As the climate crisis continues to transform societies’ expectations, International Energy Week 2022 will be the energy industry’s first global meeting to assess the outcomes of COP26 alongside the continuing recovery of the COVID-19 pandemic.

Speakers include:

50+ countries With region focused sessions

200+ companies Influential senior level executives

www.ieweek.co.uk

1,500 participants Register to confirm your place

AT THE BACK ADVERTISERS INDEX & SOCIAL STORAGE

ADVERTISERS INDEX Actemium..........................................................................62

Go4Bunker.......................................................................... 9

Reliable Sprinkler................................................................3

Alkion Terminals.............................................. Back cover

IE Week.............................................................................. 87

S&P Global Platts............................................................. 19

Assentech....................................................... Front cover

ILTA......................................................................................16

Scully..................................................................................20

Auma................................................................................... 17

Katronic.............................................................................23

Soliflo....................................................................................5

Cashco................................................................................ 11

Koerting..............................................................................21

Sprint Robotics.................................................................84

ChemUK.............................................................................81

Netzsch............................................................................. 14

StocExpo..............................................................................7

Discus................................................................................ 61

Nordic Storage..................................................................15

Storag Etzel.......................................................................28

EEMUA......................................................................13 & 25

Precise Tank Cleaning Tools.............Inside front cover

Suma.................................................................................... 8

FETSA.................................................................................12

Protego.............................................................................. 10

SOCIAL STORAGE Most liked posts this month:

Tank Storage Magazine

8,017 followers 2d • Edited •

Tank Storage Magazine

8,017 followers 2w •

8,017 followers 1mo • Edited •

Vopak Moda Houston’s marine terminal in the Port of Houston is fully operational – the first greenfield terminal development in the Port of Houston in more than a decade!

Rubis Terminal Rotterdam breaks ground on seven carbon steel tanks: https://bit.ly/31pNIQu

Global Energy Storage (GES) invests in Gunvor Group Ltd’s Stargate Terminal: https://bit.ly/3C500kDQ #tankstorage #tanks #terminals #energytransition #rotterdam

Vopak’s Moda Houston marine terminal is now fully operational

Rubis Terminal Rotterdam breaks ground on seven carbon steel tanks

GES invests in Gunvor’s Stargate Terminal

tankstoragemag.com

71 • 3 comments • 3 shares

Comment

Organic impressions: 3,707 impressions

@tankstorageinfo

55 • 1 share

36 • 1 share

Comment

Organic impressions: 2,708 impressions

Tank Storage Magazine

Comment

Organic impressions: 2,802 impressions

Tank Storage Magazine

PAGE 88

EVENTS 2022 CALENDAR

EVENTS 2022 22nd – 24th February 2022

Media Partner INTERNATIONAL ENERGY WEEK London, UK & Online www.ieweek.co.uk

8th March 2022

Official Publication GLOBAL TANK STORAGE AWARDS Rotterdam, The Netherlands The Global Tank Storage Awards are designed to highlight those that excel in a range of different categories relating to terminal achievements, equipment innovations, ports and individual accomplishments. www.tankstoragemag.com/awards

8th – 10th March 2022

Official Publication STOCEXPO Rotterdam, The Netherlands StocExpo is the largest and longest running event for the global tank storage industry. As the number one meeting place for anyone involved in tank storage for over 15 years, StocExpo is the ideal event to help you stay ahead of the competition, network and gain new business. www.stocexpo.com

29th – 30th March 2022

Official Publication EUROPEAN OIL & ENERGY STORAGE CONFERENCE Amsterdam & Online https://plattsinfo.spglobal.com/ European-oil-energy-storageconference.html

29th – 30th March 2022

Media Partner SPRINT ROBOTICS WORLD CONFERENCE Singapore conference.sprintrobotics.org

April 2022

Official Publication PGLC 2020 Barcelona, Spain www.pglc.biz

13th – 15th April 2022

Media Partner NISTM Orlando, USA www.nistm.org

27th – 28th April 2022 15th – 16th March 2022

Media Partner BIOFUELS INTERNATIONAL EXPO AND CONFERENCE Brussels, Belgium www.biofuels-news.com/conference

28th – 29th March 2022

Media Partner 8TH INTERNATIONAL LNG CONGRESS Dusseldorf, Germany www.lngcongress.com

Media Partner UKIFDA 2022 Liverpool, UK www.ukifda.org

23rd – 27th May 2022

Media Partner WORLD GAS CONFERENCE Korea www.wgc2022.org 13th – 15th June 2022

Silver Sponsor ILTA 2022 Houston, Texas www.ilta.org 15th – 16th June 2022

Media Partner 3RD EUROPEAN HYDROGEN & P2X Copenhagen, Denmark www.fortesmedia.com/hydrogen-p2x2022,4,en,2,1,15.html

14th – 15th September 2022

Media Partner GLOBAL INFRASTRUCTURE SUMMIT Frankfurt, Germany https://www.dialoguecapital.com/ events/infrastructure-dialogue/globalinfrastructure-dialogue-gid22

22nd September 2022

Media Partner TANK STORAGE ASSOCIATION CONFERENCE & EXPO Coventry, UK www.tankstorage.org.uk/ conference-exhibition

19th – 29th October 2022 10th – 12th May 2022

Media Partner CANADA GAS & LNG EXPO Vancouver, Canada www.canadagaslng.com

11th – 12th May 2022

Official Publication CHEM UK 2022 Coventry, UK www.chemicalukexpo.com

Media Partner HYDROGEN TECHNOLOGY EXPO EUROPE Bremen, Germany www.hydrogen-worldexpo.com

Keep up to date with event date changes due to the ongoing COVID-19 pandemic www.tankstoragemag.com

Real responsibility starts with listening.

Storage solutions that respond to a rapidly evolving industry. Alkion provides a wide range of bulk liquid storage services at nine terminal locations in western Europe. In doing so we act as an essential link in the global network that facilitates modern life and our objective is to help our customers operate seamless supply chains. Our watchword is ‘Listening is Everything’.

Thus we listen to the needs of our customers, our partners and the planet, storing and handling hazardous products prudently and competently while exploring and investing in forward thinking storage solutions that expedite the energy transition. Within this effort we strive for resource efﬁcient operations that reduce emissions.

Listening is everything.